Honda-The Power of Dreams
Consolidated Financial Summary for the Fiscal 4th Quarter and Fiscal Year Ended March 31, 2009

TOKYO, Japan, April 28, 2009– Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2009. 

♦ Consolidated Financial Summary:

Results for Fiscal 4th Quarter (3 months ended March 31, 2009)
Consolidated net sales and other operating revenue for the fiscal fourth quarter ended March 31, 2009 amounted to JPY 1,783.8 billion, a decrease of 41.6% compared to the same period a year ago, primarily due to factors including the negative impact of currency translation and decreased sales in automobile business.

Consolidated operating loss amounted to JPY 283.0 billion, a decrease of JPY 451.8 billion compared to the same period a year ago, due to decreased profit from lower revenue, the increase in fixed costs per unit as a result of reduced productions, increased raw material costs, the negative impact of currency effects caused by the appreciation of the Japanese yen and expenses related to withdrawal from some racing activities and cancellations of development of new models, more than offsetting continuing cost reduction efforts and decreased selling, general and administrative (SG&A) and R&D expenses.

Consolidated loss before income taxes amounted to JPY 309.5 billion, a decrease of JPY 456.4 billion from the same period a year ago, and net loss amounted to JPY 186.1 billion, a decrease of JPY 211.5 billion compared to the same period a year ago.

Yen (billions) 4th quarter ended
March 31, 2008
4th quarter ended
March 31, 2009
Difference
(% change)
Status of the fiscal 4th quarter ended March 31, 2009
Net sales and other operating revenue 3,055.5 1,783.8 -1,271.6
(-41.6)
Decreased for the 2nd consecutive year
Operating income
(loss)
168.8 (283.0) -451.8 Decreased for the 3rd consecutive year
Income (loss) before Income taxes 146.8 (309.5) -456.4 Decreased for the 3rd consecutive year
Equity in income of affiliates 24.3 2.7 -21.6
(-88.7)
Decreased for the first time in 2 years
Net Income (loss) 25.4 (186.1) -211.5 Decreased for the 3rd consecutive year

Exchange rate: Honda’s average rates for this fiscal 4th quarter: JPY 94=USD1 / JPY 121=Euro1
  Honda’s average rates for the previous fiscal 4th quarter: JPY106=USD1 / JPY158=Euro1


Results for Fiscal Year ended March 31, 2009 (12 months ended March 31, 2009)
Consolidated net sales and other operating revenue for the fiscal year ended March 31, 2009 amounted to JPY 10,011.2 billion, a decrease of 16.6% compared to the same period a year ago, due to factors including the negative impact of currency translation and decreased sales in automobile business.

Consolidated operating income amounted to JPY 189.6 billion, a decrease of 80.1% compared to the same period a year ago, due to decreased profit from lower revenue, increased raw material costs, the increase in fixed costs per unit as a result of reduced productions, the negative impact of currency effects caused by the appreciation of the Japanese yen and expenses related to withdrawal from some racing activities and cancellations of development of new models, despite the positive effect of continuing cost reduction efforts, and decreased R&D expenses.  

Income before income taxes amounted to JPY 161.7 billion, a decrease of 81.9% compared to the same period a year ago, and net income amounted to JPY 137.0 billion, a decrease of 77.2% compared to the same period a year ago.

Yen (billions) Fiscal year ended March 31, 2008 Fiscal year ended March 31, 2009 Difference
(% change)
Status of the fiscal year ended
March 31, 2009
Net sales and other operating revenue 12,002.8 10,011.2 -1,991.5
(-16.6)
Decreased for the first time in 9 years
Operating income 953.1 189.6 -763.4
(-80.1)
Decreased for the first time in 2 years
Income before Income taxes 895.8 161.7 -734.1
(-81.9))
Decreased for the first time in 2 years
Equity in income of affiliates 118.9 99.0 -19.9
(-16.7)
Decreased for the first time in 10 years
Net Income 600.0 137.0 -463.0
(-77.2)
Decreased for the first time in 2 years

Exchange rate: Honda’s average rates for the fiscal year ended March 31, 2009: JPY101=USD1 / JPY142=Euro1
  Honda’s average rates for the fiscal year ended March 31, 2008: JPY114=USD1 / JPY162=Euro1


Honda plans for a year-end cash dividend of JPY 8 per share. Together with the fiscal first quarter cash dividends of JPY 22, the fiscal second quarter cash dividends of JPY 22 and the fiscal third quarter cash dividends of JPY 11, the total cash dividends to be paid for the year ended March 31, 2009 are planned to be JPY 63 per share, which is a decrease of JPY 23 compared to the previous fiscal year. The year-end dividends are matters to be resolved at general shareholders’ meeting.


Consolidated unit sales
(Consolidated unit sales are the total of sales of completed products of Honda and its consolidated subsidiaries, and sales of parts for local production at Honda’s affiliates accounted for under the equity method.)


 
4th quarter ended
March 31, 2009
Difference
  (% change)
Major factors of increase/decrease
Motorcycles
2.002 million units (-15.5)
Decreased sales in all regions
Automobiles
0.68 million units (-35.3)
Decreased sales in all regions
Power Products
1.531 million units (-26.8)
Decreased sales in all regions


 
Fiscal year ended
March 31, 2009
Difference
  (% change)
Major factors of increase/decrease
Motorcycles
10.114 million units (+8.5)
Increased sales of parts for local production at Honda's overseas affiliates accounted for under the equity method and increased sales in the “Other” region which includes Brazil.
Automobiles
3.517 million units (-10.4)
Decreased sales in Japan and North America despite an increase in Asia and the “Other” region which includes Brazil.
Power Products
5.187 million units (-14.1)
Decreased sales in Japan, North America and Europe.

Unit sales of approximately 1.1 million units for the fiscal 4th quarter and 4.7 million units for the fiscal year ended March 31, 2009 of Honda-brand motorcycle products are not included in the totals listed above, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied from Honda and its consolidated subsidiaries.


Forecast for the Fiscal Year Ending March 31, 2010
Honda will conduct its business operations based on the target for a full year financial results forecast for the fiscal year ending March 31, 2010 as described below, with assumption of the average currency exchange rate of JPY 95 = U.S. dollar 1 and JPY 125 = Euro 1 for the fiscal year.

Yen (billions) Fiscal year ended March 31, 2009 Forecast for fiscal year ending
March 31, 2010
Difference
(% change)
Forecast Status
Net sales and other operating revenue 10,011.2 8,370.0 -1,641.2
(-16.4)
Decreased for the 2nd consecutive year
Operating income 189.6 10.0 -179.6
(-94.7)
Decreased for the 2nd consecutive year
Income before Income taxes 161.7 10.0 -151.7
(-93.8)
Decreased for the 2nd consecutive year
Equity in income of affiliates 99.0 50.0 -49.0
(-49.5)
Decreased for the 2nd consecutive year
Net Income 137.0 40.0 -97.0
(-70.8)
Decreased for the 2nd consecutive year
Exchange rate: Honda’s average rates for the fiscal year ended March 31, 2009: JPY101=USD1 / JPY142=Euro1


Consolidated Unit Sales Forecast
 
Fiscal year ending
March 31, 2010
Difference
  (% change)
Motorcycles
8.595 million units (-15.0)
Automobiles
3.21 million units (-8.7)
Power Products
4.66 million units (-10.2)
Unit sales of approximately 5.38 million units of Honda-brand motorcycle products are not included in this total, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied from Honda and its consolidated subsidiaries.

Honda plans to distribute quarterly cash dividends of JPY 8 per share for each quarter for the year ending March 31, 2010. The total cash dividends for the fiscal year ending March 31, 2010 are planned to be JPY 32 per share, a decrease of JPY 31 from the annual dividends to be paid for the year ended March 31, 2009.