NOTE:
================================================================================================
>> Additional tables added to previous Final Results Announcement of 25th April 2003.
Current liabilities: 1,950,980 25.4
Short-term debt 241,039
Current portion of long-term debt 9,753
Trade payables 835,302
Accrued expenses 653,570
Other current liabilities 211,316
Long-term debt 32,805 0.4
Other liabilities 789,031 10.3
--------------------------------------------------------------------
Total liabilities 2,772,816 36.1
< Finance subsidiaries >
Short-term debt 1,400,962 18.2
Current portion of long-term debt 294,596 3.8
Accrued expenses 128,870 1.7
Long-term debt 1,111,069 14.5
Other liabilities 269,252 3.5
-----------------------------------------------------------------------------------------------------------------
Total liabilities 3,204,749 41.7
Eliminations among subsidiaries ( 925,994 ) ( 12.0 )
-----------------------------------------------------------------------------------------------------------------
Total liabilities 5,051,571 65.8
-----------------------------------------------------------------------------------------------------------------
Common stock 86,067 1.1
Capital surplus 172,529 2.2
Legal reserves 29,391 0.4
Retained earnings 3,161,664 41.1
Accumulated other comprehensive income ( 763,165 ) ( 9.9 )
(loss)
Treasury stock ( 56,766 ) ( 0.7 )
-----------------------------------------------------------------------------------------------------------------
Total stockholders' equity 2,629,720 34.2
-----------------------------------------------------------------------------------------------------------------
Total liabilities and stockholders' 7,681,291 100.0
equity
(2) Consolidated Statements of Cash Flows divided into non-financial services businesses and finance subsidiaries
(In millions of Yen)
The fiscal year ended March 31, 2003
-------------------------------------------------------------------------------------------------------------------
Items Non-financial services Finance
businesses subsidiaries
------------------------------------------------
Cash flows from operating activities:
Net Income 412,636 14,265
Adjustments to reconcile net income to net cash provided by operating
activities:
Depreciation 220,070 804
Deferred income taxes ( 18,139 ) 86,572
Equity in income of affiliates ( 62,638 )
Loss on fair value adjustment of derivative instrument ( 1,956 ) 38,939
Decrease in trade accounts and notes receivable ( 19,774 )
Decrease in inventories ( 146,574 )
Decrease in trade payables 28,273
Other, net 131,705 163
------------------------------------------------
Net cash provided by operating activities 543,603 140,743
-------------------------------------------------------------------------------------------------------------------
Cash flows from investing activities:
*Decrease (increase) in investments and advances ( 122,255 ) ( 551 )
Capital expenditures ( 316,345 ) ( 646 )
Proceeds from sales of property, plant and equipment 16,273 165
Decrease (increase) in finance subsidiaries-receivables ( 796,314 )
Net cash used in investing activities ( 422,327 ) ( 797,346 )
-------------------------------------------------------------------------------------------------------------------
Free cash flow (cash flows from operating and investing activities) 121,276 ( 656,603 )
-------------------------------------------------------------------------------------------------------------------
Free cash flow of non-financial services businesses excluding the increase
in loans (amounting to 70,471 million yen) to finance subsidiaries (Note) 246,184
-------------------------------------------------------------------------------------------------------------------
Cash flows from financing activities:
* Increase (decrease) in short-term debt ( 70,207 ) 156,825
* Proceeds from long-term debt 8,240 767,749
* Repayment of long-term debt ( 9,886 ) ( 283,589 )
Proceeds from issuance of common stock 16,967
Cash dividends paid ( 56,717 )
Increase (decrease) in commercial paper classified as long-term debt ( 30,221 ) ( 194 )
( 2,131 )
----------------------------------------
( 158,791 ) 655,627
-------------------------------------------------------------------------------------------------------------------
Effect of exchange rate changes on cash and cash equivalents ( 22,940 ) ( 606 )
-------------------------------------------------------------------------------------------------------------------
Net change in cash and cash equivalents ( 60,455 ) ( 1,582 )
-------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at beginning of year 590,798 18,643
-------------------------------------------------------------------------------------------------------------------
Cash and cash equivalents at end of year 530,343 17,061
-------------------------------------------------------------------------------------------------------------------
Note: Non-financial services businesses loans to finance subsidiaries. These cash flows were included in the items of
"Decrease(increase) in investments and advances" of non-financial services businesses, and some items of
finance subsidiaries (marked by *). Free cash flow of non-financial services businesses excluding the increase
in lending to finance subsidiaries are stated for the readers' information.
Unconsolidated Financial Summary
(Parent company only)
For the years ended March 31, 2003 and 2002
1. Financial Highlights
(Parent company only)
(In millions of Yen)
------------------------------------------------------
Year Year
ended % ended
Mar. 31, 2003 Change Mar. 31, 2002
------------------------------------------------------
Net sales 3,322,719 3.5% 3,211,186
Operating profit 144,838 -22.1% 185,829
Ordinary profit 242,680 10.8% 218,987
Net income 170,035 26.0% 134,925
(In Yen )
------------------------------------------------------
Net income per share 174.63 138.47
Dividend per share 32 28
for the term
Year-end dividend 16 15
per share
Interim dividend 16 13
per share
(As a percentage)
------------------------------------------------------
Payout ratio 18.3% 20.2%
2. Estimated Financial Figures for the Fiscal Year Ending March 31, 2004
(Parent company only)
(In millions of Yen)
------------------------------------------------------
First half Year
ending ending
Sep.30, 2003 Mar.31, 2004
------------------------------------------------------
Net sales 1,640,000 3,390,000
Ordinary profit 125,000 260,000
Net income 90,000 190,000
(In Yen)
------------------------------------------------------
Dividend per share
for the term 19 19
3. Unit Sales Breakdown
(Parent company only)
(In thousands of units)
--------------------------------------------------------
Year Year
ended ended
Mar. 31, 2003 Mar. 31, 2002
--------------------------------------------------------
MOTORCYCLE BUSINESS
Japan 429 396
Export 776 808
(Motorcycles included in export) (446) (505)
-----------------------------------------------------------------------------------------------
Total 1,205 1,204
AUTOMOBILES BUSINESS
Japan 871 902
(Mini-vehicles included above) (265) (295)
Export 485 428
-----------------------------------------------------------------------------------------------
Total 1,357 1,330
POWER PRODUCT BUSINESS
Japan 473 412
Export 4,075 3,450
-----------------------------------------------------------------------------------------------
Total 4,548 3,862
3. Net Sales Breakdown - continued
(Parent company only)
(In millions of Yen)
--------------------------------------------------------------
Year Year
ended ended
Mar. 31, 2003 Mar. 31, 2002
--------------------------------------------------------------
MOTORCYCLE BUSINESS
Japan 79,696 81,583
Export 369,998 392,785
--------------------------------------------------------------------------------------------------------------
Total 449,695 474,369
AUTOMOBILES BUSINESS
Japan 1,173,907 1,285,340
Export 1,581,244 1,344,981
--------------------------------------------------------------------------------------------------------------
Total 2,755,152 2,630,321
POWER PRODUCT BUSINESS
Japan 23,028 21,678
Export 94,842 84,817
--------------------------------------------------------------------------------------------------------------
Total 117,871 106,495
TOTAL
Japan 1,276,633 1,388,602
Export 2,046,086 1,822,583
--------------------------------------------------------------------------------------------------------------
Total 3,322,719 3,211,186
Explanatory Notes:
1. The summary of unconsolidated financial information set forth above is derived from the complete
unconsolidated financial information of the Company to be filed with the Securities and Exchange
Commission on the Company's Form 6-K for the month of May 2003.
2. Unconsolidated financial statements have been prepared on the basis of accounting principles
generally accepted in Japan in accordance with the Japanese Commercial Code.
3. The unit sales and yen amounts described above are rounded down to the nearest one thousand
units and one million yen, respectively.
4. Unconsolidated Statements of Income
(Parent company only)
(In millions of Yen)
------------------------------------------------------
Year Year
ended ended
Mar.31, 2003 Mar.31, 2002
------------------------------------------------------
Net sales 3,322,719 3,211,186
Cost of sales 2,247,487 2,184,432
Selling, general and administrative
expenses 930,398 840,924
------------------------------------------------------
Operating profit 144,838 185,829
Non-operating profit 117,732 92,388
Non-operating expenses 19,891 59,231
Ordinary Profit 242,680 218,987
Extraordinary profit 4,197 1,646
Extraordinary loss 14,859 45,362
------------------------------------------------------
Income before income taxes 232,018 175,270
Income taxes
Current 92,888 73,589
Deferred (30,905) (33,245)
------------------------------------------------------
Net income 170,035 134,925
======================================================
Notes
1. Research and development expenses for the fiscal year amounted 414,634 million of yen.
5. Unconsolidated Balance Sheets
(Parent company only)
(In millions of Yen)
------------------------------------------------------
Mar. 31, 2003 Mar. 31, 2002
------------------------------------------------------
Current assets 829,444 766,973
Fixed assets 1,231,887 1,170,832
------------------------------------------------------
Total assets 2,061,331 1,937,805
======================================================
Current liabilities 525,315 523,785
Fixed liabilities 114,761 71,372
------------------------------------------------------
Total liabilities 640,077 595,157
Common stock 86,067 86,067
Capital surplus 168,912 168,912
Legal reserve 21,516 21,516
Earned surplus 1,179,817 1,040,337
Unrealized gains on securities available
for sale 21,707 25,864
Treasury stock (56,766) (49)
------------------------------------------------------
Stockholders' equity 1,421,254 1,342,648
Total liabilities and ------------------------------------------------------
stockholders' equity 2,061,331 1,937,805
======================================================
Management Policy
Honda's business activities are based on fundamental corporate philosophies known as "Respect for
the Individual" and "The Three Joys."
"Respect for the Individual" defines Honda's relationship with its associates, business partners and
society. It is based on sharing a commitment to initiative, equality and mutual trust among people.
It is Honda's belief that everyone who comes into contact with Honda's activities will gain a sense
of satisfaction through the experience of buying, selling or creating our Honda's products and
services. This philosophy is expressed as "The Three Joys."
With these corporate philosophies as the foundation, Honda's business is guided by the following
Company Principle:
"Maintaining a global viewpoint,
we are dedicated to supplying products of the highest quality
at a reasonable price for worldwide customer satisfaction"
Honda actively works to share a sense of satisfaction with all of its customers as well as its
shareholders, and to continue improving its corporate value.
Profit Redistribution Policy
The Company considers redistribution of profits to our shareholders as one of the most important
management issues. Accordingly, the Company attempts to increase its corporate value while carrying
out its operations from a global standpoint.
The Company intends to redistribute profits to our shareholders, with regard to its projected
comprehensive cash needs/requirements, and to make distribution payments, taking into consideration
the Company's long-term consolidated earnings performance.
In consideration of shareholder expectations, retained earnings will be applied toward financing the
R&D activities that are essential for the future growth of the Company and capital expenditures and
investment programs that will expand its operations for the purpose of improving its business
results and strengthening its financial condition.
Acquisition of the Company's common stock will also be implemented at the optimal timing with the
aim of improving efficiency in its capital structure.
Preparing for the Future
Fears of a progressing slowdown in the U.S. economies, and its impact on the global business
environment are anticipated to increase, and competition in the Japanese market is expected to
intensify amid continuing weak consumer spending. Other global concerns, including Iraqi issues, are
also expected to affect the overall global economies.
In these circumstances, as part of its objective of strengthening the corporate structure and
improving product competitiveness to increase speed and flexibility in response to changing customer
and social needs, Honda recognizes that further enhancing each of the following specific areas is
essential to its success:
* R&D
* Production Efficiency
* Sales Efficiency
* Product Quality
* The Environment
* Safety Technologies
* European Business Strategy
R&D
Along with efforts to develop more effective safety and environmental technologies, Honda will
create and swiftly introduce new value-added products that meet specific needs in various regional
markets.
Honda will also continue efforts in the research of future technologies, which include the
advancement of a bi-pedal humanoid robot.
Production Efficiency
Honda will establish efficient and flexible production systems and expand production capacity with
aims to increase the capability of supplying high quality products that meet market needs. In
addition to the ongoing expansion of these systems, the Company also intends to expand on a global
scale the supply network of its competitive products and component parts.
Sales Efficiency
Honda will expand its product lines and upgrade its sales structure. Through the innovative use of
IT, Honda will also promote its efforts in customer communication.
Product Quality
Responding to increasing consumer demand, Honda will upgrade its quality control through enhanced
coordination among the development purchasing, production, sales and service departments.
The Environment
Honda will step up the introduction of clean, fuel-efficient engine technologies and recyclability
throughout its product lines. Honda will also advance alternative fuel technologies, including fuel
cells. In addition, Honda will continue its efforts to minimize the environmental impact, as
measured by the *Life Cycle Assessment, in all of its business fields including logistics and sales.
In its production activities, Honda promotes environmental preservation issues under its Green
Factory concept.
*Life Cycle Assessment
A comprehensive system for quantifying the environmental impacts of Honda's products throughout
their life cycles, from the material procurement and energy consumption to waste disposal.
Safety Technologies
Honda R&D will develop technologies for the prediction and the prevention of accidents as well as
those for passenger and pedestrian injury reduction. Honda intends to enhance its contribution to
traffic safety in motorized societies, including Asian countries. Honda also intends to remain
active in a variety of traffic safety programs, including advanced driving and motorcycling training
schemes provided by its local dealerships.
European Business Strategy
Honda will continue efforts to reinforce its sales structure by strengthening product lineup and
restructuring its sales and distribution organization. On the manufacturing side, Honda will improve
its cost competitiveness by enhancing parts procurement through Honda's global supply network,
including the network in Asian countries, and improving production efficiency at each of Honda's
production facilities in Europe.
Honda will continue to evolve in each of these areas, focusing on activities aligned with the three
directions - "Value Creation," "Globalization," and "Commitment for the future" - to reach its goal
of becoming a company that society wants to exist.
April 25, 2003
CONSOLIDATED FINANCIAL SUMMARY Honda Motor Co., Ltd
FOR THE FISCAL YEAR ENDED MARCH 31, 2003
(Billions of Yen)
--------------------------------------------------------------------------------------------------------------------------
Results for the Results for the Forecasts for the
fiscal year fiscal year ended fiscal year ending
ended Mar. 31, 2003 Mar. 31, 2004
Mar. 31, 2002 [ change / %] [ change / %]
--------------------------------------------------------------------------------------------------------------------------
Net sales and
other operating revenue 7,362.4 7,971.4 [ 609.0 / 8.3%] 8,300.0 [ 328.5 / 4.1%]
- Japan 1,868.7 1,748.7 [-120.0 / -6.4%] 1,850.0 [ 101.2 / 5.8%]
- Overseas 5,493.6 6,222.7 [ 729.1 / 13.3%] 6,450.0 [ 227.2 / 3.7%]
--------------------------------------------------------------------------------------------------------------------------
Operating income 639.2 689.4 [ 50.1 / 7.8%] 620.0 [ -69.4 / -10.1%]
--------------------------------------------------------------------------------------------------------------------------
Income before income taxes 551.3 609.7 [ 58.4 / 10.6%] 620.0 [ 10.2 / 1.7%]
--------------------------------------------------------------------------------------------------------------------------
Net income 362.7 426.6 [ 63.9 / 17.6%] 440.0 [ 13.3 / 3.1%]
--------------------------------------------------------------------------------------------------------------------------
(Increase factors) (Increase factors)
-Change in revenue -Change in revenue
model mix, etc. 186.5 model mix, etc. 80.1
-Cost reduction 56.5 -Cost reduction 50.0
(Decrease factors) (Decrease factors)
Factors of change -Currency effects -1.0 -Currency effects -111.5
in operating income Change in transaction rates (48.0) Change in transaction rates (-99.0)
Translation effects (-11.0) Translation effects (-11.0)
Difference between transaction rate Difference between transaction rate
and weighted average rate (-38.0) and weighted average rate (-1.5)
-Change is SG&A -150.2 -Change in SG&A -60.0
-Increase in R&D -41.6 -Increase in R&D -28.1
--------------------------------------------------------------------------------------------------------------------------
Average rates for the period USD= JPY 125 JPY 122 JPY 116
Average rates for the period EUR= JPY 111 JPY 122 JPY 125
--------------------------------------------------------------------------------------------------------------------------
Honda's transaction rate USD= JPY 122 JPY 123 JPY 116
Honda's transaction rate EUR= JPY 106 JPY 115 JPY 125
--------------------------------------------------------------------------------------------------------------------------
Capital expenditures 303.4 316.9 320.0
--------------------------------------------------------------------------------------------------------------------------
Depreciation 194.9 220.8 200.0
--------------------------------------------------------------------------------------------------------------------------
Research and development 395.1 436.8 465.0
--------------------------------------------------------------------------------------------------------------------------
Interest bearing debt 2,059.6 2,322.4
--------------------------------------------------------------------------------------------------------------------------
Net sales, operating income, income Net sales, income before income taxes
before income taxes and net income and net income to set record high.
Remarks set record high through every fiscal
year.
(Thousands of unit)
--------------------------------------------------------------------------------------------------------------------------
Unit sales of motorcycles 6,095 8,080 [ 1,985 / 32.6%] 9,480 [ 1,400 / 17.3%]
(M/C included above) (5.794) (7,774) [ 1,980 / 34.2%] (9,150) [ 1,376 / 17.7%]
------------------------------------------------------------------------------------------------------------------------
Japan 404 432 [ 28 / 6.9%] 430 [ -2 / -0.5%]
(M/C included above) (404) (432) [ 28 / 6.9%] (430) [ -2 / -0.5%]
------------------------------------------------------------------------------------------------------------------------
Overseas 5,691 7,648 [ 1,957 / 34.4%] 9,050 [ 1,402 / 18.3%]
(M/C included above) (5,390) (7,342) [ 1,952 / 36.2%] (8,720) [ 1,378 / 18.8%]
---------------------------------------------------------------------------------------------------------------------
North America 590 610 [ 20 / 3.4%] 670 [ 60 / 9.8%]
(M/C included above) (307) (324) [ 17 / 5.5%] (351) [ 27 / 8.3%]
Europe 315 305 [ -10 / -3.2%] 290 [ -15 / -4.9%]
(M/C included above) (308) (296) [ -12 / -3.9%] (284) [ -12 / -4.1%]
Others 4,786 6,733 [ 1,947 / 40.7%] 8,090 [ 1,357 / 20.2%]
(M/C included above) (4,775) (6,722) [ 1,947 / 40.8%] (8,085) [ 1,363 / 20.3%]
--------------------------------------------------------------------------------------------------------------------------
Unit sales of automobiles 2,666 2,888 [ 222 / 8.3%] 3,110 [ 222 / 7.7%]
------------------------------------------------------------------------------------------------------------------------
Japan 878 849 [ -29 / -3.3%] 855 [ 6 / 0.7%]
------------------------------------------------------------------------------------------------------------------------
Overseas 1,788 2,039 [ 251 / 14.0%] 2,255 [ 216 / 10.6%]
---------------------------------------------------------------------------------------------------------------------
North America 1,368 1,522 [ 154 / 11.3%] 1,560 [ 38 / 2.5%]
Europe 176 207 [ 31 / 17.6%] 210 [ 3 / 1.4%]
Others 244 310 [ 66 / 27.0%] 485 [ 175 / 56.5%]
--------------------------------------------------------------------------------------------------------------------------
Unit sales of power products 3,926 4,584 [ 658 / 16.8%] 5,180 [ 596 / 13.0%]
------------------------------------------------------------------------------------------------------------------------
Japan 409 472 [ 63 / 15.4%] 390 [ -82 /-17.4%]
------------------------------------------------------------------------------------------------------------------------
Overseas 3,517 4,112 [ 595 / 16.9%] 4,790 [ 678 / 16.5%]
---------------------------------------------------------------------------------------------------------------------
North America 1,601 1,872 [ 271 / 16.9%] 2,270 [ 398 / 21.3%]
Europe 1,012 1,290 [ 278 / 27.5%] 1,320 [ 30 / 2.3%]
Others 904 950 [ 46 / 5.1%] 1,200 [ 250 / 26.3%]
--------------------------------------------------------------------------------------------------------------------------
This announcement contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange
Act of 1934. Honda's actual results could materially differ from those contained in these forward-looking statements as
a result of numerous factors outside of Honda's control, including general economic conditions in Honda's principal
markets and foreign exchange rates between the Japanese yen and other major currencies, as well as other factors detailed
from time to time in Honda's reports filed with the U.S. Securities and Exchange Commission.
April 25, 2003
UNCONSOLIDATED FINANCIAL SUMMARY Honda Motor Co., Ltd
FOR THE FISCAL YEAR ENDED MARCH 31, 2003
(Parent company only)
(Billions of Yen)
--------------------------------------------------------------------------------------------------------------------------
Results for the Results for the Forecasts for the
fiscal year fiscal year ended fiscal year ending
ended Mar. 31, 2003 Mar. 31, 2004
Mar. 31, 2002 ( change / %) ( change / %)
--------------------------------------------------------------------------------------------------------------------------
Net sales and
other operating revenue 3,211.1 3,322.7 ( 111.5 / 3.5%) 3,390.0 ( 67.2 / 2.0%)
- Domestic 1,388.6 1,276.6 (-111.9 / -8.1%) 1,320.0 ( 43.3 / 3.4%)
- Export 1,822.5 2,046.0 ( 223.5 / 12.3%) 2,070.0 ( 23.9 / 1.2%)
--------------------------------------------------------------------------------------------------------------------------
Operating income 185.8 144.8 ( -40.9 /-22.1%) 150.0 ( 5.1 / 3.6%)
--------------------------------------------------------------------------------------------------------------------------
Ordinary profit 218.9 242.6 ( 23.6 / 10.8%) 260.0 ( 17.3 / 7.1%)
--------------------------------------------------------------------------------------------------------------------------
Net income 134.9 170.0 ( 35.1 / 26.0%) 190.0 ( 19.9 / 11.7%)
--------------------------------------------------------------------------------------------------------------------------
(Increase factors) (Increase factors)
Change in revenue Change in revenue
model mix, etc. 28.9 model mix, etc. 31.8
Cost reduction 32.0 Cost reduction 19.0
Decrease in SG&A 15.6
Factors of change in
operating income
(Decrease factors) (Decrease factors)
Currency effects -12.5 Currency effects -26.0
Increase in SG&A -55.4 Increase in R&D -35.3
(Excluding R&D)
Increase in R&D expenses -34.0
--------------------------------------------------------------------------------------------------------------------------
Weighted avg translation rate USD= JPY 125 JPY 122 JPY 116
Weighted avg translation rate EUR= JPY 111 JPY 122 JPY 125
--------------------------------------------------------------------------------------------------------------------------
Honda's transaction rate USD= JPY 122 JPY 123 JPY 116
Honda's transaction rate EUR= JPY 106 JPY 115 JPY 125
--------------------------------------------------------------------------------------------------------------------------
Capital expenditures 68.6 78.1 100.0
----------------------------------------------------------------------------------------------------------------------
M/C production-related 3.6 2.4 2.0
A/M production-related 39.1 31.2 33.0
P/P production-related 2.3 0.8 1.0
Others 23.4 43.5 64.0
--------------------------------------------------------------------------------------------------------------------------
Depreciation 61.7 59.0 60.0
--------------------------------------------------------------------------------------------------------------------------
Research and development 380.5 414.6 450.0
--------------------------------------------------------------------------------------------------------------------------
Interest bearing debt 1.1 4.2 -
--------------------------------------------------------------------------------------------------------------------------
Remarks -Net sales set record high for the -Net sales to set record high for
second consecutive year. three consecutive years.
-Ordinary profit to increase for two -Ordinary profit and net income to
consecutive years. set record high.
-Net income set record high.
(Thousands of unit)
--------------------------------------------------------------------------------------------------------------------------
Unit sales of motorcycle business 1,024 1,205 ( - / 0.1%) 1,140 ( -65 / -5.5%)
(motorcycles included above) (901) (875) ( -26 / -2.9%) (810) ( -65 / -7.5%)
------------------------------------------------------------------------------------------------------------------------
Domestic sales 396 429 ( 33 / 8.4%) 430 ( - / -0.1%)
(motorcycles included above) (396) (429) ( 33 / 8.4%) (430) ( - / -0.1%)
------------------------------------------------------------------------------------------------------------------------
Export sales 808 776 ( -32 / -4.0%) 710 ( -66 / -8.5%)
(motorcycles included above) (505) (446) ( -59 /-11.8%) (380) ( -66 /-14.8%)
--------------------------------------------------------------------------------------------------------------------------
Unit sales of automobile business 1,330 1,357 ( 26 / 2.0%) 1,290 ( -67 / -5.0%)
------------------------------------------------------------------------------------------------------------------------
Domestic sales 902 871 ( -31 / -3.5%) 870 ( -1 / -0.1%)
Registration vehicles 607 605 ( -1 / -0.3%) 580 ( -25 / -4.3%)
Mini vehicles 295 265 ( -30 /-10.2%) 290 ( 24 / 9.3%)
------------------------------------------------------------------------------------------------------------------------
Export Sales 428 485 ( 57 / 13.5%) 420 ( -65 /-13.6%)
--------------------------------------------------------------------------------------------------------------------------
Unit sales of power product bus. 3,862 4,548 ( 685 / 17.7%) 5,000 ( 451 / 9.9%)
------------------------------------------------------------------------------------------------------------------------
Domestic sales 412 473 ( 60 / 14.7%) 390 ( -83 /-17.6%)
------------------------------------------------------------------------------------------------------------------------
Export sales 3,450 4,075 ( 624 / 18.1%) 4,610 ( 534 / 13.1%)
--------------------------------------------------------------------------------------------------------------------------
Automobile production 2,692 2,961 ( 269 / 10.0%) 3,110 ( 148 / 5.0%)
Domestic 1,315 1,351 ( 36 / 2.8%) 1,250 ( -101 / -7.5%)
Overseas 1,376 1,609 ( 232 / 16.9%) 1,860 ( 250 / 15.5%)
--------------------------------------------------------------------------------------------------------------------------
This announcement contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange
Act of 1934. Honda's actual results could materially differ from those contained in these forward-looking statements as
a result of numerous factors outside of Honda's control, including general economic conditions in Honda's principal
markets and foreign exchange rates between the Japanese yen and other major currencies, as well as other factors detailed
from time to time in Honda's reports filed with the U.S. Securities and Exchange Commission.
April 25, 2003
Consolidated Financial Summary (Supplemental version) Honda Motor Co., Ltd
(Thousands of units, Millions of Yen)
-------------------------------------------------------------------------------
Fourth Quarter Results Fiscal Year Results Forecasts
--------------------------------------------------------------------------------
3M ended 3M ended % Year ended Year ended % Y ending %
Mar. 2003 Mar. 2002 change Mar. 2003 Mar. 2002 change Mar.2004 change
--------------------------------------------------------------------------------
Unit sales of motorcycles
Japan 123 101 21.8% 432 404 6.9% 430 -0.5%
(M/C included above) (123) (101) 21.8% (432) (404) 6.9% (430) -0.5%
North America 170 190 -10.5% 610 590 3.4% 670 9.8%
(M/C included above) (101) (101) (324) (307) 5.5% (351) 8.3%
Europe 92 96 -4.2% 305 315 -3.2% 290 -4.9%
(M/C included above) (89) (94) -5.3% (296) (308) -3.9% (284) -4.1%
Others 1,683 1,365 23.3% 6,733 4,786 40.7% 8,090 20.2%
(M/C included above) (1,681) (1,361) 23.5% (6,722) (4,775) 40.8% (8,085) 20.3%
-----------------------------------------------------------------------------------------------------------------
Total 2,068 1,752 18.0% 8,080 6,095 32.6% 9,480 17.3%
(M/C included above) (1,994) (1,657) 20.3% (7,774) 5,794 34.2% 9,150 17.7%
Unit sales of automobiles
Japan 221 247 -10.5% 849 878 -3.3% 855 0.7%
North America 402 364 10.4% 1,522 1,368 11.3% 1,560 2.5%
Europe 64 54 18.5% 207 176 17.6% 210 1.4%
Others 93 61 52.5% 310 244 27.0% 485 56.5%
-----------------------------------------------------------------------------------------------------------------
Total 780 726 7.4% 2,888 2,666 8.3% 3,110 7.7%
Unit sales of power products
Japan 119 137 -13.1% 472 409 15.4% 390 -17.4%
North America 712 622 14.5% 1,872 1,601 16.9% 2,270 21.3%
Europe 592 405 46.2% 1,290 1,012 27.5% 1,320 2.3%
Others 293 265 10.6% 950 904 5.1% 1,200 26.3%
-----------------------------------------------------------------------------------------------------------------
Total 1,716 1,429 20.1% 4,584 3,926 16.8% 5,180 13.0%
Exchange rate to USD (Note)
Honda's transaction rates 121.00 125.00 -3.3% 123.00 122.00 0.8% 116.00 -6.0%
Market average rates for the period 118.94 132.52 -11.4% 121.95 125.14 -2.6% 125.00 3.2%
Rates for the period-end 120.20 133.25 -10.9%
Exchange rate to EUR (Note)
Honda's transaction rates 119.00 110.00 7.6% 115.00 106.00 7.8% 125.00 8.0%
Market average rates for the period 127.74 116.11 9.1% 121.04 110.58 8.6% 125.00 3.2%
Rates for the period-end 129.83 116.14 10.5%
Key items
Net sales and other
operating revenue 2,128,649 2,101,030 1.3% 7,971,499 7,362,438 8.3% 8,300,000 4.1%
Japan 432,954 501,405 -13.7% 1,748,706 1,868,746 -6.4% 1,850,000 5.8%
Overseas 1,695,695 1,599,625 6.0% 6,222,793 5,493,692 13.3% 6,450,000 3.7%
Operating income 206,602 169,277 22.0% 689,449 639,296 7.8% 620,000 -10.1%
Income before income taxes 177,345 160,882 10.2% 609,755 551,342 10.6% 620,000 1.7%
Net income 116,716 106,709 9.4% 426,662 362,707 17.6% 440,000 3.1%
Capital expenditures 109,695 106,362 3.1% 316,991 303,424 4.5% 320,000 0.9%
Depreciation 61,238 54,824 11.7% 220,874 194,944 13.3% 200,000 -9.5%
Research and development 117,382 107,752 8.9% 436,863 395,176 10.5% 465,000 6.4%
Stockholders' equity 2,629,720 2,573,941 2.2%
Total assets 7,681,291 6,940,795 10.7%
Interest bearing debt 2,322,478 2,059,697 12.8%
------------------------------------------------------------------- ------------------------------ ------------------
Notes -Net sales, operating income, -Net sales, operating income, -Net sales, income
income before income taxes income before income taxes before income
and net income set record and net income set record high taxes and net
high through every qurter. through every fiscal year. income to set
record high.
---------------------------------------------------------------------------------------------------------------------
Note
Honda's transaction rates : rates to be used mainly for exchanging the Company's foreign currency-
denominated trade amount into yen.
Market average rates for the period : rates to be used for translating the Company's subsidiaries' foreign
currency-denominated statements of income into yen.
Rates for the period-end : rates to be used for translating the Company's subsidiaries' foreign
currency-denominated assets and liabilities into yen.
-----------------------------------------------------------
4th Fiscal Year Forecasts
Quarter Results FY2004
------------------------------------------------------------------- --------------------- --------------------
Factors of changes in operating income
------------------------------------------------------------------- --------------------- --------------------
Changes in revenue, model mix, etc. +96,482 +186,557 +80,151
------------------------------------------------------------------- --------------------- --------------------
Currency effects -42,500 -1,000 -111,500
------------------------------------------------------------------- --------------------- --------------------
(Change in transaction rates) -3,500 +48,000 -99,000
------------------------------------------------------------------- --------------------- --------------------
U. S. Dollar -8,000 +24,500 -75,000
------------------------------------------------------------------- --------------------- --------------------
Euro and other currencies +4,500 +23,500 -24,000
------------------------------------------------------------------- --------------------- --------------------
(Translation effects) -16,000 -11,000 -11,000
------------------------------------------------------------------- --------------------- --------------------
Gross profit -31,000 -18,000 -27,700
------------------------------------------------------------------- --------------------- --------------------
SG&A +15,000 +7,000 +16,700
------------------------------------------------------------------- --------------------- --------------------
(Difference between transaction rate
and weighted average rate) -23,000 -38,000 -1,500
------------------------------------------------------------------- --------------------- --------------------
Cost reduction +20,000 +56,500 +50,000
------------------------------------------------------------------- --------------------- --------------------
Materials and other +26,500 +86,500 +50,000
------------------------------------------------------------------- --------------------- --------------------
Labor expenses -2,500 -11,500 -13,000
------------------------------------------------------------------- --------------------- --------------------
Depreciation -4,000 -18,500 13,000
------------------------------------------------------------------- --------------------- --------------------
Changes in SG&A -27,027 -150,217 -60,000
------------------------------------------------------------------- --------------------- --------------------
Changes in R&D -9,630 -41,687 -28,100
------------------------------------------------------------------- --------------------- --------------------
Changes in operating income +37,325 +50,153 -69,449
--------------------------------------------------------------------------------------------------------------
This announcement contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange
Act of 1934. Honda's actual results could materially differ from those contained in these forward-looking statements as
a result of numerous factors outside of Honda's control, including general economic conditions in Honda's principal
markets and foreign exchange rates between the Japanese yen and other major currencies, as well as other factors detailed
from time to time in Honda's reports filed with the U.S. Securities and Exchange Commission.
ends...
