This segment encompasses all businesses not directly related to automobile or motorcycle operations, and includes revenue from sales of power products and related components, as well as from finance, leisure and trading businesses. In fiscal 2002, increases in revenue from the financial services business and the impact of currency translation adjustments contributed to a 13.5% increase in overall segment revenue, to ¥484.7 billion ($3,638 million).

POWER PRODUCTS
Unit sales of power products rose 1.1%, to 3,926,000. This improvement was primarily attributable to solid gains in North America. During the period, we introduced a number of new products – including 4-stroke overhead cam (OHC) general-purpose engines, 4-stroke outboard engines, high-output inverter-equipped generators and a hybrid snowblower – in major overseas markets. In Japan, we commenced production at the Hosoe Plant, a new outboard engine plant at the Hamamatsu Factory.

In North America, firm sales of general-purpose engines and lawnmowers boosted unit sales of power products 13.4%, to 1,601,000. Unit sales of power products fell 20.3%, to 1,012,000, in Europe, and 13.0%, to 904,000, in other regions, owing chiefly to lower sales of general-purpose engines.

In fiscal 2003, we intend to introduce a number of new general-purpose engines and to commence production of these engines in China, positioning us well to respond to rising demand. In this environment, we expect overall unit sales of power products to increase 18.7%, to 4,660,000.

FINANCIAL SERVICES
Through a number of financial services subsidiaries in Japan, the United States, Canada, the United Kingdom, Germany and Brazil, our financial services business supports sales activities by providing various services to dealers and customers. Revenue from financial services, including intersegment sales, in fiscal 2002 advanced 18.9%, to ¥209.3 billion ($1,571 million), thanks mainly to the effects of favorable automobile sales in North America. In May 2002, we announced plans to reinforce our financing business in Japan by integrating our three existing financing companies – involved in equipment leasing and cash loans, car leasing and the credit business – to form a new company, Honda Finance Co., Ltd. The new company, which will commence operations on July 1, 2002, will enable us to improve capital efficiency and procure low-cost funding, which in turn will allow us to offer more competitive financial services.