In fiscal 2003, motorcycle unit sales, including all-terrain vehicles (ATVs) and personal watercraft (PWC), jumped 32.6% to 8,080,000 units, mainly as a result of robust sales in other regions, centered on Asia. Revenue grew by 3.2% to ¥978.0 billion due to an increase in unit sales and a positive translation effect from the depreciation of the yen against the euro. Operating income dropped by 15.6% to ¥58.7 billion and the operating margin was 6.0%.

In Japan, unit sales were up by 6.9% to 432,000 units, mainly as a result of stronger scooter sales. In fiscal 2003, we launched the scooter Today, which is manufactured in China, and comes fully equipped but at a reasonable price. We also introduced the leisure bike Solo, which has a unique design, and made a full model change to the CB1300 Super Four sports bike, together with improving its handling. The light motorcycle market has been expanding, and we improved the performance of the scooter Fusion for this market in response to requirements from young users.

In North America, unit sales rose by 3.4% to 610,000 units, mainly because of an increase in sales of ATVs and off-road bikes. The new products we launched in North America included the ATV TRX650FA, which realizes superior driving performance and handling capabilities, the sports bike ST1300, and the super sports bike CBR600RR, which offers excellent performance. We also launched the off-road bikes CRF150F and CRF230F, our first Brazilian-made models exported to North America.

In Europe, the economy remained sluggish and the markets in the individual European countries contracted. In this situation, Honda's unit sales shrank by 3.2% to 305,000 units. Sales declined in all countries except the United Kingdom, where unit sales increased mainly due to favorable scooter sales.
Regarding new products, we launched the Thai-made Innova, the 125cc cub-model, as a part of the achievement of our "Made by Global Honda" approach. We also introduced the Pantheon in the steadily growing scooter segment. This scooter features Honda's electronically controlled fuel injection system (PGM-FI), which we recently developed for use with light motorcycles.

In other regions (i.e., Asia, Oceania, Latin America, the Middle East and Africa), unit sales surged 40.7% to 6,733,000 units.
In the Asian region, which is showing particularly strong growth, we launched the family bike Wave100 in Thailand, at a price we managed to lower through our cost cutting efforts. In India, we introduced the sporty scooter Dio, which features European-style. And, in Indonesia, we marketed the 125cc cub-model Karisma, with an exterior design modified to meet local customers' tastes. Sales of all of these products were favorable. In South America, we launched the sport motorbikes NXR125 and NXR150.

In fiscal year ending March 2004, we project that motorcycle unit sales including all-terrain vehicles (ATVs) and personal watercraft (PWC) to rise by 17.3% to 9,480,000 units.
In Japan, we will launch a second Chinese-made product with attractive price to follow the Today. In the sport model category, we have begun to introduce in Japan, as well as in Europe and North America, the CBR600RR as our new core sports model for the future. The CBR600RR was developed using technology from the RC211V, which posted a formidable performance in winning the MotoGP road race world championship last year. We plan for fiscal 2004 unit sales in Japan to remain at the previous year's level of 430,000 units.
In North America, we expect overall demand to slow a bit, including demand for ATVs. In this situation, Honda aims to increase sales by launching new motorcycle and ATV models, along with strengthening its sales network. We are planning for an increase in unit sales in fiscal 2004 by 9.8% to 670,000 units.
In Europe, we expect the market environment to remain unfavorable. Our plan for fiscal 2004 calls for unit sales to shrink by 4.9% to 290,000 units.
In other regions, we intend to increase our production capacities to meet the growing demand in Asia for motorcycles, and our unit sales in fiscal 2004 are expected to rise by 20.2% to 8,090,000 units. In addition to models that are manufactured for export at our factories in China and Thailand, we are developing scooters made at our factory in India and motorcycles built in Brazil for sale around the world. We plan to greatly increase models that are supplied across regions, in addition to supply from Japan. In Latin America, we will strengthen our sales network and expand sales by improving the attractiveness of our products, enhancing our price competitiveness, and upgrading our sales network.