Fiscal 2006 Results
Honda offers a variety of financial services to its customers and dealers, with the aim of supporting sales of Honda motorcycles and automobiles. These services are provided through financial subsidiaries in the United States, Japan, Canada, the United Kingdom, Germany, Brazil and Thailand. In fiscal 2006, net sales of our financial services business, including intersegment sales within Honda, rose 20.0%, to ¥310.9 billion, due mainly to firm demand for automobiles in North America, as well as positive currency translation effects. Operating income edged up 0.8%, to ¥90.5 billion, benefiting from a higher loan balance accompanying expansion of our business, as well as a reduction in selling, general and administrative expenses, which outweighed the negative effects of increased funding costs.

Outlook for Fiscal 2007
In fiscal 2007, we look forward to further expansion of our financial services business, which helps support sales in other business segments. Our forecast is based on expectations of renewed growth in our core operations, especially the automobile business.