STRONG FIRST QUARTER SALES AND STABLE FINANCIAL FORECAST FOR HONDA

August 3, 2012

597

Honda Motor Co., Ltd. has announced its consolidated financial results for the fiscal first quarter ended 30 June 2012 and financial forecast for the current year ending March 2013. This demonstrates the gradual growth of Honda’s global business and the solid foundations that its new products are providing, despite challenging market conditions.

Fiscal First Quarter (1 April – 30 June 2012) Consolidated net sales and other operating revenues for the fiscal first quarter (1 April 2012 to 30 June 2012) amounted to 2,435.9 billion yen, an increase of 42.1% compared to the same period last year, primarily due to strong sales of new models within Honda’s car products and an increase in revenue as a result of a recovery from the impact of the Great East Japan Earthquake.

Consolidated income before income taxes amounted to 194.7 billion yen (approx £1.6b), approximately 6.6 times greater than the same period last year. Consolidated net income attributable to Honda Motor Co., Ltd. amounted to 131.7 billion yen (approx £1.08b), approximately 4.1 times greater than the same period last year.

FY13 Forecast (1 April 2012 – 31 March 2013) Whilst production and profit were severely affected by external factors during the last fiscal year, Honda continues to display a solid constitution and is planning a strong recovery during this current year.

Despite some uncertainties in the economic climate and market trends, as well as the fluctuation of currency exchange rates, Honda’s previously announced forecast for consolidated financial results for the current fiscal year ending 31 March 2013 (FY13) will remain unchanged from the previously advised JPY 620 billion (£5.1b).

Honda further plans to set a record high with annual automobile sales of 4.3 million units. This will be driven by new model changes for major models and the expansion of production capacity at production plants in North America and China.

The quarterly dividend for the fiscal first quarter will be JPY 19 (£0.16) per share, a JPY 4 increase compared to the quarterly dividend for the same period last year. The total cash dividends to be paid for the fiscal year ending 31 March 2013 are planned to be JPY 76 (£0.63) per share, an increase of JPY 16 per share from the previous fiscal year.

Operating Income History FY10 Actual (2009-2010) 363.7 billion yen FY11 Actual (2010-2011) 569.7 billion yen FY12 Actual (2011-2012) 231.3 billion yen (reduced to the affects of the Great East Japan Earthquake and Thai Floods) FY13 Forecast (2012-2013) 620 billion yen

Consolidated Financial Results for the Fiscal 1^st Quarter

		1^st quarter ended Jun. 30, 2011	1^st quarter ended Jun. 30, 2012	Difference
Honda Group Unit Sales^*1 (million units)	Motorcycles^*3	3.477	3.911	+0.434
	Automobiles^*4	0.625	0.999	+0.374
	Power Products	1.512	1.625	+0.113
Consolidated Unit Sales^*2 (million units)	Motorcycles^*3	1.949	2.366	+0.417
	Automobiles^*4	0.458	0.849	+0.391
	Power Products	1.512	1.625	+0.113
Financial Results (billion yen)	Net sales and other operating revenue	1,714.5	2,435.9	+721.3
	Operating income	22.5	176.0	+153.4
	Income before income taxes	29.2	194.7	+165.4
	Equity in income of affiliates	28.6	20.7	-7.9
	Net income attributable to Honda Motor Co., Ltd.	31.7	131.7	+99.9
Quarterly dividend per share (Yen)	15	19	+4
Honda’s average rate (Yen)	USD =	82	80	Yen appreciated by 2 yen
Honda’s average rate (Yen)	EUR =	118	104	Yen appreciated by 14 yen

Forecasts for the Fiscal Year ending March 31, 2013 (FY13)

		FY12 results	FY13 forecasts	Difference
Honda Group Unit Sales^*1 (million units)	Motorcycles	15.061	16.600	+1.539
	Automobiles^*4	3.108	4.300	+1.192
	Power Products	5.819	6.300	+0.481
Consolidated Unit Sales^*2 (million units)	Motorcycles	8.650	9.900	+1.250
	Automobiles^*4	2.482	3.540	+1.058
	Power Products	5.819	6.300	+0.481
Financial Results/ Forecasts (billion yen)	Net sales and other operating revenue	7,948.0	10,300.0	+2,351.9
	Operating income	231.3	620.0	+388.6
	Income before income taxes	257.4	635.0	+377.5
	Equity in income of affiliates	100.4	120.0	+19.5
	Net income attributable to Honda Motor Co., Ltd	211.4	470.0	+258.5
Annual dividend per share (Yen)	60	76	+16
Honda’s average rate (Yen)	USD =	79	80	Yen depreciated by 1 yen
Honda’s average rate (Yen)	EUR =	108	105	Yen appreciated by 3 yen

*1 Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. *2 Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. *3 Consolidated Unit Sales of ATV included in Motorcycle business for the three months ended June 30, 2011 and 2012 are 26 thousand units and 29 thousand units, respectively. *4 Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles and are not included in consolidated net sales to the external customers in our automobile business. As a result, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile business.