Annual Report 2017: Honda Motor Co., LTD

Annual Report 2017
Year Ended March 31, 2017
Honda Motor Co., Ltd.

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Honda Motor Co., Ltd. Annual Report 2017
page opened contents page 1
1 The Power of
Dreams 2 Financial Highlights 3 To Our Shareholders 4 CFO Interview
5 Review of
Operations 6 ESG Information 7 Financial Section 8 Investor Relations
Information
Corporate Profile Honda Motor Co., Ltd. operates under the basic principles of “Respect for the Individual” and “The Three Joys”—expressed as
“The Joy of Buying”, “The Joy of Selling” and “The Joy of Creating”. “Respect for the Individual” reflects our desire to respect the
unique character and ability of each individual person, trusting each other as equal partners in order to do our best in every
situation. Based on this, “The Three Joys” express our belief and desire that each person working in or coming into contact with
our company, directly or through our products, should share a sense of joy through that experience.
In line with these basic principles, since its establishment in 1948, Honda has remained on the leading edge by creating new
value and providing products of the highest quality at a reasonable price, for worldwide customer satisfaction. In addition, the
Company has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile society.
The Company has grown to become the world’s largest motorcycle manufacturer and one of the leading automakers. With a
global network of 367* subsidiaries and 75* affiliates and joint ventures accounted for using the equity method, Honda develops,
manufactures and markets a wide variety of products to earn the Company an outstanding reputation from customers worldwide.
* As of March 31, 2017
Ridgeline
On the Cover: CR-V (North America)

The CR-V is America’s best-selling SUV over the past 20 years since its debut in 1997. The fifth generation CR-V features a first ever turbocharged engine—a more powerful and fuel-efficient 1.5-liter DOHC direct-injection
engine. It is also available with a 2.4-liter DOHC direct-injection i-VTEC engine. The CR-V is also equipped with “Honda SENSING,” a suite of advanced safety and driver-assistive technologies resulting in outstanding value
which reflects the development aim of establishing a new compact SUV benchmark.
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1 The Power of
Dreams 2 Financial Highlights 3 To Our Shareholders 4 CFO Interview 5 Review of
Operations
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1 The Power of
5 Review of
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Contents 1 The Power of Dreams page 03 5 Review of Operations page 12 6 ESG Information page 22
13 Motorcycle 22 Environment/Social Activity/Safety

2 Financial Highlights page 04 Business 23 Corporate Governance
24 Risk Factors
3 To Our Shareholders page 05 26 Board of Directors and Operating Officers
16 Automobile
Business
7 Financial Section page 29

19 Power Product 29 Financial Review
and Other
31 Consolidated Statements of Financial Position
Businesses
4 CFO Interview page 10 32 Consolidated Statements of Income
33 Consolidated Statements of
Comprehensive Income
34 Consolidated Statements of Cash Flows
35 Segment Information
36 Unaudited Consolidated Statements of
21 Financial Financial Position Divided into Non-financial
Services Businesses and Finance Subsidiaries
Services
Business 37 Unaudited Consolidated Statements of Cash Flows
Divided into Non-financial Services Businesses
and Finance Subsidiaries
38 Financial Summary
8 Investor Relations
Information
page 40
The consolidated financial statements of the Company in this Annual Report have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”).
Please refer to Form 20-F, a report which the Company files annually with the U.S. Securities and Exchange Commission (“U.S. SEC”), if more comprehensive information is required.
Caution with Respect to Forward-Looking Statements

This annual report contains “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on management’s assumptions and beliefs,
taking into account information currently available to it. Therefore, please be advised that Honda’s actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in
Honda’s principal markets; foreign exchange rates between the Japanese yen and the U.S. dollar and other major currencies; and extensive environmental and other governmental regulations, as well as other factors detailed from time to time.
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The Power of Dreams The new Civic Type R, which will be launched in markets around
the world, including Europe, Japan, and North America from the
summer of 2017, was engineered to deliver the most rewarding
drive in the hot hatch segment, both on road and on the race
track. It recently set a new record lap time for front-wheel drive
Dreams inspire us to create innovative products that enhance mobility and benefit society. cars at the Nurburgring Circuit*. Several factors contributed to this
achievement. At its heart is the optimized and refined 2.0-liter
To meet the particular needs of customers in different regions around the world, VTEC TURBO engine, which combined with new lower gear ratios
we base our sales networks, research and development centers, and manufacturing in the six-speed manual transmission, further improve the car’s
acceleration. In addition, the high-rigidity, light body and new
facilities in each region. Furthermore, as a socially responsible corporate citizen, multi-link rear suspension provide significant benefits to steering
response and cornering stability. The Civic Type R is produced at
we strive to address important environmental and safety issues. Honda’s U.K. plant in Swindon.
* Source Honda (As of April 2017)
Civic Type R
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Financial Highlights Years ended March 31

Sales Revenue Operating Profit / Operating Margin Share of Profit of Investments Accounted for
* In fiscal 2013, the above was named “Net Sales and Other Operating Revenue” and stated in * In fiscal 2013, the above was named “Operating Income” and stated in accordance with U.S. GAAP. Using the Equity Method
accordance with U.S. GAAP. * In fiscal 2013, the above was named “Equity in Income of Affiliates” and stated in accordance with
U.S. GAAP.
Yen (billions) Yen (billions) (%) Yen (billions)
15,000 1,000 8.0 180
750 6.0
10,000 120
500 4.0
5,000 60
250 2.0
0 13 14 15 16 17 0 13 14 15 16 17 0.0 0 13 14 15 16 17
U.S. GAAP IFRS U.S. GAAP IFRS U.S. GAAP IFRS
Operating Profit (left scale) Operating Margin (%) (right scale)
2017 Sales Revenue 2017 Operating Profit 2017 Share of Profit of Investments Accounted for
13,999.2 billion yen 840.7

Operating Margin
billion yen
Using the Equity Method
164.7 billion yen
Profit for the Year Attributable to Owners of the Parent /

6.0
Total Assets /
%
Additions to Property, Plant and Equipment /
Basic Earnings per Share Attributable to Owners of Equity Attributable to Owners of the Parent / Depreciation
the Parent Equity Attributable to Owners of the Parent per Share * In fiscal 2013, the above were named “Capital Expenditures (Excluding Purchase of Operating
* In fiscal 2013, the above were named “Net Income Attributable to Honda Motor Co., Ltd.” and * In fiscal 2013, the above were named “Total Honda Motor Co., Ltd. Shareholders’ Equity” and Lease Assets)” and “Depreciation (Excluding Property on Operating Leases),” and stated in
“Basic Net Income Attributable to Honda Motor Co., Ltd. per Common Share,” and stated in “Total Honda Motor Co., Ltd. Shareholders’ Equity per Common Share,” and stated in accordance accordance with U.S. GAAP.
accordance with U.S. GAAP. with U.S. GAAP.
Yen (billions) (Yen) Yen (billions) (Yen) Yen (billions)
800 400 20,000 6,000 800
600 300 15,000 4,500 600
400 200 10,000 3,000 400
200 100 5,000 1,500 200
0 13 14 15 16 17 0 0 13 14 15 16 17 0 0 13 14 15 16 17
U.S. GAAP IFRS U.S. GAAP IFRS U.S. GAAP IFRS
Profit for the Year Attributable to Owners of the Parent (left scale) Total Assets (left scale) Equity Attributable to Owners of the Parent (left scale) Additions to Property, Plant and Equipment
Basic Earnings per Share Attributable to Owners of the Parent (right scale) Equity Attributable to Owners of the Parent per Share (right scale) Depreciation
2017 Profit for the Year Attributable to Owners of the Parent 2017 Total Assets 2017 Additions to Property, Plant and Equipment
616.5 billion yen

Basic Earnings per Share Attributable to Owners
18,958.1 billion yen 588.3
Depreciation
billion yen
Equity Attributable to Owners of the Parent
of the Parent
342.10 7,295.2 billion yen 484.1 billion yen
yen Equity Attributable to Owners of the Parent
per Share
4,047.81 yen
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into one of our global models. Moreover, sales of the all-new

Civic, with its refined design and driving experience, have
been strong everywhere. Sales of the all-new CR-V, which
started in the U.S., are also off to a strong start. With various
measures including the introduction of a hybrid version, we
are going to further grow CR-V as a strong global model.
Furthermore, the next-generation Accord will undergo a full
model change this year starting from the U.S. market, with a
Takahiro Hachigo further advanced design and driving experience.
President and Representative Director In addition to these global models, our regional models,
Chief Executive Officer
another strength of Honda, have also been growing in each
respective region. These highly acclaimed regional models
include the Mobilio and BR-V in Asia; the Ridgeline and
Odyssey in North America; the Crider, Avancier and UR-V in
China and the N-BOX in Japan.
Mutually complementary system for our global operations
Concerning the advancement of our six-region global opera-

tion structure, we are facilitating inter-regional coordination to
evolve our models more efficiently to further expand the
potential of our regional models. For instance, the WR-V, a
regional model developed mainly by the Honda R&D center in
Brazil, is now being produced and sold in India as well. More-
<What Honda has achieved in the last
To Our two years and the direction Honda will
take in the future>
over, to balance supply and demand in global production and
sales, we have been working to establish a flexible production
system and mutually complementary production among six
Shareholders Since I became president, we have set and pursued two

themes. One was the “development of challenging products
unique to Honda” and the other was the “advancement of our
regions. And now, we are gradually seeing positive results
from our efforts.
For instance, in North America, in order to enable us to
On behalf of Honda, I would like to express my six-region global operation structure.” accommodate the recent increase in demand for SUVs, we
heartfelt thanks to all of our shareholders and are in the process of establishing a production system where
Strengthening global models Design and driving
investors for your continuous interest and and regional models experience we can handle the production of light truck models such as
ongoing support for Honda’s business activities. the Honda CR-V, Pilot and the Acura MDX more flexibly in
To strengthen our automobile business, we have been
I would also like to extend our sincere gratitude enhancing the product strengths of global and regional
North America. As for the Civic Hatchback, supply from the
to all of our customers, suppliers and those who models, which have long been strengths of Honda. As for
U.K. to North America has begun and supply to Japan also is
live in the local communities where Honda on the way.
global models, which are the backbone of our automobile
operations are located. Your support has been As these examples demonstrate, we will advance our six-
products, the compact SUV model Vezel/HR-V has grown
vital to our growth and development. region global operation structure through inter-regional
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cooperation and coordination in order to further strengthen As for the electrification of motorcycles, we are striving to Initiative toward the introduction of
our global competitiveness. promote the electrification of commuter models, and we are advanced safety technologies
planning to introduce some new models, including an electric In the area of safety, we are striving to further increase the
Realizing a carbon-free and collision-free society scooter, in 2018. For the electrification of motorcycle models, number of automobile models that feature the Honda
we are currently working on the research and development of SENSING suite of advanced safety and driver-assistive
As an important challenge for a mobility company, Honda has a highly convenient system for electric commuter models, technologies. In Japan, starting with the all-new N-BOX,
worked on the theme of the realization of a carbon-free and which features a detachable mobile battery that is easy to which is scheduled to go on sale this fall, we will begin
collision-free society. The speed of evolution in these areas replace and/or recharge. We are considering conducting applying Honda SENSING to our mini-vehicles as standard
has been rapidly increasing in recent years, and we need to demonstration testing of this mobile battery in collaboration equipment. Also, we will make Honda SENSING standard
fortify our initiatives. To this end, we have identified the with Japan Post Co., Ltd., as we recently announced in equipment on all new models we introduce in Japan from now
introduction of electrification technologies and advanced Japan. And as we conduct research on this mobile battery, on, as a means to further accelerate our efforts toward the
safety technologies as our highest priority and are working we are envisioning a future where we also use it for automo- realization of a collision-free society. Moreover, we will expand
proactively in these areas. biles and power products. application of Honda SENSING to all-new models in other
regions as well, including North America, China and Europe.
Enhancing the introduction of electrification technologies
As a part of our effort to address environmental issues, we are

striving to electrify two-thirds of all automobiles we sell globally
by the year 2030. In addition to the expansion of hybrid models,
our development will put a central focus on hybrid-based
models utilizing a high-efficiency plug-in hybrid system unique
to Honda. Moreover, as we expect zero-emission vehicles will
quickly become popular on a global basis, we will strengthen
the development of fuel cell vehicles as well as battery EVs.
The Clarity series, which we recently introduced in the U.S.,
is our first model with a lineup including plug-in hybrid, battery
EV and fuel cell variants using the same platform. Concerning
battery EVs, we are planning to introduce a China-exclusive
model next year. In addition, dedicated EV models for other
regions also are currently under development.
In preparation for this evolution, we are strengthening our
capabilities and development structure for electrified vehicles.
In order to further increase development speed, in October of
last year, we established an Electric Vehicle Development
Division within Honda R&D where a specialized team will be
in charge of developing the entire vehicle, including the
powertrain and chassis. Going forward, we will aggressively
pursue development of electrified vehicles under the leader-
ship of this division.
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And we are making progress in the research and develop- The universal passion of Honda consists of the value pro- making things, and Koto-zukuri—which is creating new
ment of automated driving technologies, where Honda is striv- position that Honda should offer and the corporate attitude we experiences through brand storytelling around the art of
ing to “serve people worldwide with the joy and freedom of should have toward the realization of that value proposition. making things. Through this integration of further advanced
collision-free mobility.” There are three values we want to real- Our value proposition is to provide products and services that Mono-zukuri and Koto-zukuri, we will continue creating the
ize. First, is the “realization of a society where people do not expand people’s dreams and potential. The corporate attitude strengths of Honda.
get involved in accidents.” Second, is “offering mobility prod- means our approach to taking on new challenges while being Our 2030 Vision consists of four parts: 1) The 2030 Vision
ucts which enable all people to always enjoy the freedom of driven by a strong passion to realize our value proposition. Statement, 2) The Corporate Attitude that describes how we
mobility.” And the third value we want to realize is “creating Concerning the strengths of Honda, there are two existing are going to work toward the vision, 3) The direction of our
travel time and cabin space that make mobility fun for people.” strengths. The first one is our strength in manufacturing a initiatives toward the fulfillment of the 2030 Vision and 4) What
As for the concept of Honda’s automated driving, we are broad range of products including motorcycles, automobiles we will do to strengthen our business foundation.
striving to provide our customers with a sense of self- and power products. The second strength is the number of
assuredness by offering automated driving which will help vehi- markets and 28 million customers we connect with each year <Vision Statement>
cles avoid dangerous situations and not make people around through our products. To these existing strengths, we will In two areas—the “advancement of mobility” and “value
the vehicle feel anxious. In addition, by featuring smooth and add a new strength of Honda which is our ability to create creation for people’s daily lives”—we will bring the universal
natural driving characteristics, we will realize occupant comfort, solutions, which includes both Mono-zukuri, the art of passion of Honda to “serve people worldwide with the joy of
which gives the driver self-confidence and naturally instills a
desire within people to go out and enjoy mobility.
First, we are going to realize automated driving technolo-
gies for use on highways in 2020. And then, we will make
them usable in a broader area including regular roads. As for
automated driving on highways, we are striving to realize an Strengths of Honda
automated lane-changing function which enables the vehicle Strengths in technology and manufacturing Customer / Market base Ability to create solutions
to utilize in multiple lanes without any driver input. We are also
going to realize an automated driving function which will free
in a broad area that includes motorcycles,
automobiles and power products
with 28 million customers
around the world + which includes not only Mono-zukuri
but also Koto-zukuri
the driver from the need to monitor his or her surroundings

Existing Strengths New Strengths
while the vehicle is caught in traffic. Moreover, we will strive to
establish the technologies to achieve “level 4” automated
driving for personal car use by around 2025.
Integration of advanced Mono-zukuri and Koto-zukuri
<2030 Vision>
For Honda to continue to be a company that society wants to
exist even in the year 2050, when the Company will be more
than 100 years old, we must try to envision what Honda Universal passion unique to Honda
needs to be like. This forward-looking image is summarized in
what we call the 2030 Vision. Value Expand people’s dreams Corporate Take on new challenges while
Proposition and potential Attitude being driven by a strong passion
<Universal passion and strengths of Honda>
To draft our vision statement, we first clarified the “universal
passion of Honda” and the “strengths of Honda.”
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expanding their life’s potential.” And toward this end, we will focus on AI—and energy solutions in order to provide people <Strengthening our business foundations
“lead the advancement of mobility and enable people every- with the joy and freedom of mobility and the joy of making for growth>
where in the world to improve their daily lives.” This is our their lives better. Toward the fulfillment of this vision, the most important thing is
2030 Vision Statement. From the second perspective of “Expanding the Joys,” we how we will transform and evolve our existing businesses and
will focus on “accommodating the different characteristics of also create new value through efficient use of finite corporate
<Direction of our initiatives toward the people and society.” In this area, we will strive to further resources. To this end, we identified three areas we will focus
fulfillment of the 2030 Vision> expand the joy of people by offering products and services on, and we will utilize our corporate resources effectively in
To embody our 2030 Vision Statement, we set the direction of that are optimized based on Honda’s desire to “utilize technol- such areas and strengthen our business foundation.
our concrete initiatives. ogy to help people, while putting people at the core.”
From three perspectives—“Creating the Joys,” “Expanding From the third perspective of “Ensuring the Joys for the Next First, we will further enhance our inter-regional coordination
the Joys” and “Ensuring the Joys for the Next Generation”— Generation,” we will make progress “toward a clean and safe/ and collaboration and increase the efficiency of our operations
we defined three areas of our initiatives. secure society.” Striving to become No. 1 in the areas of the from a global perspective. Toward this end, we will grow our
From the first perspective of “Creating the Joys,” we will environment and safety, we will invest more resources in these global models strong, so that they will be well received any-
work on “creating value for mobility and people’s daily lives.” areas. And we will strive to become a company that leads the where in the world. As for regional models, with consideration
We will focus on three areas, namely mobility, robotics—with a efforts to realize a carbon-free and collision-free society. of customers needs in each region, multiple regions which
2030 Vision
Serve people worldwide with the “joy of expanding their life’s potential” Vision Statement
—Lead the advancement of mobility and enable people everywhere in the world to improve their daily lives—
Growth through the pursuit of quality Corporate Attitude
Creating
Creating value for “mobility” and “daily lives”
the Joys Provide people the joy Provide people the joy of
and freedom of mobility making their lives better
Expanding
Accommodate the different characteristics of people and society Direction of our initiatives toward
the Joys Provide the ideal products and services that fulfill societies’ expectations the fulfillment of the 2030 Vision
and meet individual needs
Ensuring
the Joys Toward a clean and safe / secure society
for the
Next Lead efforts to realize Lead efforts to realize
Generation a carbon-free society a collision-free mobile society
Business Strengthening our business

viewpoint Effective utilization of corporate resources foundations for growth
to focus on
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have similar customer needs will work together to realize partnership opportunities. For instance, in the area of the art new development process for Honda’s art of making auto-
common regional models with a high level of product strength. of making things, we are collaborating with General Motors, mobiles, which will enable us to more efficiently create both
Through this initiative, we will strive to achieve more efficient Hitachi Automotive Systems and Yamaha Motor. And in the products and new experiences that appeal to people’s emo-
business operations in each region. area of creating new experiences about the art of making tions. Through those new initiatives, we will aim to create
things, we are already collaborating with Japan Post and Grab attractive automobiles and achieve comprehensive cost
Second is the collaboration for open innovation with third Inc. in the area of motorcycles and with Waymo in the U.S. in reduction by making both the development and production of
parties. We will clarify what we should do on our own, and we the area of automated driving. We will further accelerate these new automobiles more efficient.
will focus on that. At the same time, we will be proactive in collaborations going forward. * Sales, Engineering and Research & Development
engaging in open innovation with external partners. Since its
foundation, Honda’s strengths have been advantages in tech- The third area of focus is to strengthen our business foun- <Corporate attitude>
nologies and products centering around the powertrain and dation and ensure sustainable operations, especially with our For the fulfillment of our 2030 Vision, we will set the corporate
packaging, which includes internal combustion engines as automobile business, in order to solidify existing businesses. attitude to “pursue growth through the pursuit of quality.” We
well as more recent electrified vehicles. In addition, our busi- To this end, we are currently moving forward with a project will increase the quality of Honda products and services, and
ness foundation established all around the world has also which will significantly advance Honda’s development system at the same time, we will increase the quality of our corporate
been one of our strengths. Identifying powertrain and and capability. The special merit of Honda’s automobile devel- activities, which we will carry out based on the strong principle
packaging as Honda’s core technologies, we would like to opment is our “SED* development system,” where develop- that we want to please our customers.
strengthen partnerships from the perspective of both Mono- ment teams, production teams and sales teams work as one
zukuri and Koto-zukuri with our customers worldwide. and form a project team to pursue product development. We <On a final note…>
In fact, we have already begun exploring various will further advance this development system and introduce a In order for us to fulfill this 2030 Vision and create a New
Honda, in addition to continuous investment in our research
and development, returns to our shareholders and investors,
investments in our production including our suppliers and
earning profit that enables us to do all of that are all equally
important. Also, with such a perspective, we will strive to
further strengthen the foundation of our company so that we
can fulfill the expectations of our shareholders, investors and
many other people who support Honda.
Honda appreciates the continuous support from our
shareholders toward our efforts to create a New Honda.
June 15, 2017
Takahiro Hachigo
President and Representative Director
Chief Executive Officer
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Alphabet Inc., the umbrella parent company of Google. In January
CFO Interview 2017, we made a joint announcement with GM concerning the

establishment of the auto industry’s first manufacturing joint venture
to mass-produce an advanced hydrogen fuel cell system. In addi-
tion, in March 2017, Hitachi Automotive Systems and Honda
signed a contract related to the establishment of a joint venture
Kohei Takeuchi
company for the development, manufacture and sale of motors for
Senior Managing Director
electric vehicles.
Chief Financial Officer
Furthermore, in February 2017, Honda R&D Co., Ltd., the R&D
subsidiary of Honda, announced plans to establish R&D Center X
to strengthen our R&D in “new value” areas that include robotics
technology, mobility systems and energy management, etc. The
R&D Center X began operations in April 2017.
Q: Please tell us about the mid-term initiatives.

For the fiscal year ending March 31, 2018, we are expecting sales
revenue of 14.2 trillion yen (an increase of 1.4% compared to the
previous fiscal year) and operating profit of 705.0 billion yen (a
decrease of 16.1% compared to the previous fiscal year).* We are
assuming the average JPY/USD exchange rate for this fiscal year to
be 105 yen to the US dollar, whereas the rate was 108 yen to the
US dollar for the previous fiscal year.* Operating profit is expected
to increase by 43.3 billion yen compared to the previous fiscal year
if we exclude currency effects and a negative factor related to the
discontinuation of the impact of changes in our pension system,
which was recorded in the fiscal year ended March 31, 2017. This
forecast is based on our expectation that profit-increasing factors
Q: Please give us an overview of the financial strong sales of multiple models including the CR-V, Vezel/XR-V, such as an improvement in model mix, an increase in motorcycle
results for the fiscal year ended March 31, 2017. Accord and Civic. In motorcycle business operations, production sales and cost reduction efforts will more than offset profit-reducing
Despite increases in consolidated unit sales in motorcycle, auto- volume of our consolidated subsidiary in India reached 5 million factors such as a rise in raw material prices.
mobile and power products businesses and an increase in sales units for the first time. For the mid-term, we are expecting to incur up-front expenses
revenue of financial service business operations, sales revenue for Operating profit amounted to 840.7 billion yen, an increase of related to the introduction of electrified powertrains and automated
the fiscal year ended March 31, 2017 amounted to 13.99 trillion 67.0% compared to the previous fiscal year. Key factors included a driving technologies, however, we will establish a corporate struc-
yen (13 trillion 999.2 billion). This was a decrease of 4.1% com- reduction of quality-related expenses, a one-off effect due to ture which will enable both sustainable growth and shareholder
pared to the previous fiscal year, due mainly to unfavorable foreign changes to the pension system and currency effects due to the returns even in a tough competitive environment. To be more con-
currency translation effects. Without foreign currency translation appreciation of the yen. However, despite the tough business envi- crete, we will further improve the fundamentals of our existing
effects, sales revenue for the fiscal year would have shown a ronment, our fundamentals continue to improve as indicated by the businesses by pursuing various measures, including the realization
year-on-year increase of 722.6 billion yen. fact that improvements such as an increase in unit sales and cost of highly efficient operations through greater inter-regional coordina-
As for unit sales, worldwide automobile sales exceeded 5 million reduction efforts had a positive effect of 105.0 billion yen. tion and collaboration as well as cost reduction through increased
units, setting an all-time record for fiscal year sales. If we take a Moreover, during the fiscal year ended March 31, 2017, we commonality of parts and platforms. In addition, we will continue to
look at individual markets, in the U.S. where we introduced the undertook several noteworthy initiatives in the areas of open inno- pursue open innovation and the formation of alliances, such as the
all-new Ridgeline in June 2016 and all-new CR-V in December, vation and collaboration. In December 2016, we entered into formal ones I mentioned earlier.
unit sales exceeded 1.6 million units, setting an all-time record. In discussions about joint research into the area of automated driving
*as of April 28, 2017
China, sales exceeded 1.3 million units for the first time due to technologies with Waymo, a self-driving technology subsidiary of
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Q: Please tell us about the future direction con- subsidiaries. For the fiscal year ended March 31, 2017, our R&D necessary to invest in R&D and business expansion which is
cerning capital investment and R&D expenses. expenses amounted to 685.3 billion yen, a decrease of 4.8% com- deemed to be essential for our future growth, especially in certain
Capital investment: pared to the previous fiscal year. For the current fiscal year ending key areas such as environmental and advanced safety technolo-
For the fiscal year ended March 31, 2017, capital investment March 31, 2018, we are planning for R&D expenses of 750.0 billion gies. Giving comprehensive consideration to all these factors from a
amounted to 541.0 billion yen, a decrease of 16.4% compared to yen, an increase of 9.4% compared to the previous fiscal year*. long-term perspective, we believe that it is appropriate to have a
previous fiscal year, due mainly to investments related to new Working toward the future introduction of new technologies, total shareholder return ratio of approximately 30%. Moreover, as
model introductions and the enhancement, streamlining and including electrification technologies and advanced safety tech- for acquisition of our own stock, we consider this to be one
upgrading of production, sales and R&D facilities. For the fiscal year nologies, we are expecting R&D expenses to rise. However, we are approach available within our capitalization strategy to improve
ending March 31, 2018, we are planning for a capital investment of going to hold down an increase in R&D expenses by further capital efficiency and shareholder returns. As for dividends, based
530.0 billion yen*, a decrease of 2.0% compared to the previous increasing the efficiency of our development activities in existing on our desire to deliver shareholder returns as promptly as pos-
fiscal year. In China, where we need more production capacity, we business areas and through proactively utilizing open innovation as sible, we make dividend payments four times a year. For the fiscal
are currently building a third Dongfeng Honda plant with a target to a means to enable R&D to select and concentrate their resources year ended March 31, 2017, the quarterly dividend for the fiscal first
begin production in 2019**. With respect to investment related to in key areas. and second quarters was 22 yen per share for each quarter, and
electrification, which is expected to grow in importance going for- the quarterly dividend for the fiscal third and fourth quarters was 24
* As of April 28, 2017
ward, while we will continue to consider possible alliances in the ** This is a capital investment being made by an affiliated company accounted for yen per share for each quarter. Therefore, total dividends paid for
area of motors for electric vehicles and for the joint development by the equity-method, therefore it is not included in the amount of total capital the fiscal year ended March 31, 2017 amounted to 92 yen per
investment mentioned earlier.
and mass production of fuel cell systems, we will seek to hold share, an increase of 4 yen per share compared to the previous
down an increase in capital investment by utilizing our corporate fiscal year. For the fiscal year ending March 31, 2018, we are fore-
Q: Please share Honda’s thoughts on shareholder
resources more efficiently. casting total dividends of 96 yen per share*, another increase of 4
returns.
yen per share compared to the previous fiscal year. Honda will
Maintaining a global viewpoint, Honda is engaged in business
R&D expenses: continue striving to increase corporate value to fulfill the expecta-
activities around the world and continuously strives to increase its
At Honda, for the purpose of enabling our engineers to carry out tions of our shareholders.
corporate value. Concerning the distribution of profit, we position
free and open-minded R&D activities and create unique and com-
shareholder returns as one of the top priorities of management. At * As of April 28, 2017.
petitive products with advanced technologies, key research and
the same time, however, a certain level of internal reserves are
development operations maintain their independence as
Capital Expenditures/Depreciation R&D Expenditure/ Dividend per Share

Years ended March 31 R&D Expenditure as a Percentage of Sales Revenue Years ended March 31
Years ended March 31 * In fiscal 2013, the above was named “R&D expenses”
Yen (billions) Yen (billions) and stated in accordance with U.S. GAAP. (%) (Yen)
750 800 8.0 100
600 6.0 75
500
400 4.0 50
250
200 2.0 25
0 0 0.0 0
13 14 15 16 17 13 14 15 16 17 13 14 15 16 17
U.S. GAAP IFRS U.S. GAAP IFRS
R&D Expenditure (left scale)
Capital Expenditures Depreciation R&D Expenditure as a Percentage of Sales Revenue (right scale)
Note: Capital Expenditure and Depreciation in the above graph exclude Capital Note: This figure differs from R&D expenses as itemized in the consolidated
Expenditure and Depreciation in operating lease assets, financial lease assets, statement of income.
and intangible assets.
1 The Power of
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Review of Operations
Motorcycle Business Automobile Business Power Product and Financial Services
Other Businesses Business
page 13 page 16 page 19 page 21
Sales Revenue (millions)

External customers ¥1,716,165 ¥10,086,816 ¥318,125 ¥1,878,094
Intersegment — 169,850 31,567 13,188
Total ¥1,716,165 ¥10,256,666 ¥349,692 ¥1,891,282
Segment Profit (Loss)

(millions) ¥170,740 ¥501,181 ¥(9,659) ¥178,449
Percentage of Sales Revenue by Business Percentage of Sales Revenue by Region
Other Regions
Financial Services Motorcycle Business 6.1% Japan

Business
13.4% 12.3% Asia 12.9%

22.0%
Power Product and Automobile Business Europe North America
Other Businesses
72.0% 4.6% 54.4%
2.3%
1 The Power of
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Information
(Fiscal years ended March 31)

Honda Group 2016 2017 15,937 2016 2017
Unit Sales*1 /
Consolidated
Unit Sales*2
(Thousands) 9,513
1,057 1,057
156 294 217 156 294 217
Japan North Europe Asia Other Japan North Europe Asia Other
America Regions America Regions
*1 The total unit sales of completed products of Honda, its consolidated subsidiaries and
its affiliates and joint ventures accounted for using the equity method
*2 The total unit sales of completed products of Honda and its consolidated subsidiaries
Sales Revenue 2016 2017 % change

by Region ¥ 66,877 ¥ 62,769 (6.1)%
Yen (millions) Japan
North America 186,065 168,015 (9.7)
Europe 125,021 118,295 (5.4)
Asia 1,107,669 1,088,138 (1.8)
Other Regions 319,797 278,948 (12.8)
Total ¥1,805,429 ¥1,716,165 (4.9)%
Yen (billions)
2,000
1,500
Japan
North America 1,000
Europe
Asia 500
Other Regions
0 13 14 15 16 17
Pioneer 1000 (North America)
U.S. GAAP IFRS
Review of Operations Operating Profit / Operating Margin

Yen (billions) (%)
Motorcycle Business 200
150
12.0
9.0
Honda’s consolidated unit sales of motorcycles and all-terrain vehicles (ATVs) in fiscal year 2017 totaled 11,237 thousand units,
an increase of 6.3% from the previous fiscal year, due mainly to increases primarily in India and Vietnam, which more than offset 100 6.0
a decline in Brazil.
Sales revenue from external customers decreased by ¥89.2 billion, or 4.9%, to ¥1,716.1 billion from the previous fiscal year, due 50 3.0
mainly to negative foreign currency translation effects, which was partially offset by an increase in consolidated unit sales.
Operating profit decreased by ¥11.0 billion, or 6.1%, to ¥170.7 billion from the previous fiscal year, due mainly to negative foreign 0 13 14 15 16 17 0.0
currency effects, which was partially offset by continuing cost reduction as well as the impact of pension plan amendments. U.S. GAAP IFRS
Operating Profit (left scale) Operating Margin (right scale)
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Japan North America Europe

Total industry demand for motorcycles in Japan* decreased Total demand for motorcycles and all-terrain vehicles (ATVs) Total demand for motorcycles in Europe* increased around
by around 6% from the previous fiscal year to approximately in the United States*, the principal market within North 12% from the previous year to approximately 910 thousand
370 thousand units in fiscal year 2017. America, decreased around 3% from the previous year to units in calendar year 2016.
Honda’s consolidated unit sales in Japan declined approximately 700 thousand units in calendar year 2016. Honda’s consolidated unit sales in Europe increased
13.3% from the previous fiscal year to 156 thousand units Honda’s consolidated unit sales in North America 6.4% from the previous fiscal year to 217 thousand units in
in fiscal year 2017, mainly reflecting an overall decline in unit decreased 4.5% from the previous fiscal year to 294 fiscal year 2017, mostly as a result of robust sales of the
sales of 50cc scooter models. thousand units in fiscal year 2017. This was mainly due to CRF1000L Africa Twin model.
a decrease in sales of ATVs, which was partially offset by
* Source: JAMA (Japan Automobile Manufacturers Association) * Based on Honda research. Only includes the following 10 countries: the United
increased sales of side-by-side (SxS) models, centered on Kingdom, Germany, France, Italy, Spain, Switzerland, Portugal, the Netherlands,
Belgium, and Austria.
the Pioneer 1000, primarily in the United States.
* Source: MIC (Motorcycle Industry Council)
The total includes motorcycles and ATVs, but does not include side-by-side
(SxS) models.
Pioneer 1000 (North America) CRF 1000L Africa Twin (Europe)

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Asia Other Regions

Total demand for motorcycles in Asia* increased around 2% Honda’s consolidated unit sales in Asia increased 10.0% Total demand for motorcycles in Brazil*, the principal market
from the previous year to approximately 39,760 thousand from the previous fiscal year to 9,513 thousand units in within Other Regions, declined significantly by about 28%
units in calendar year 2016. fiscal year 2017. This was due to brisk sales of scooter from the previous year to approximately 850 thousand units
Looking at market conditions by country, in calendar year models such as the Activa in India and the Vision in in calendar year 2016, mainly due to a continued slump in
2016, demand in India increased about 10% from the previ- Vietnam, among other factors. Honda’s consolidated unit economic conditions.
ous year to approximately 17,670 thousand units. Demand sales do not include sales by P.T. Astra Honda Motor in In Other Regions (including South America, the Middle
in China decreased around 13% from the previous year to Indonesia, which is accounted for using the equity method. East, Africa, Oceania and other areas), Honda’s consoli-
approximately 8,040 thousand units. Demand in Indonesia P.T. Astra Honda Motor’s unit sales for fiscal year 2017 dated unit sales decreased 14.1% from the previous fiscal
decreased around 8% from the previous year to approxi- decreased around 2% from the previous fiscal year to year to 1,057 thousand units in fiscal year 2017, mainly
mately 5,930 thousand units. Vietnam saw demand increase approximately 4,370 thousand units due mainly to lackluster reflecting the overall market weakness in Brazil.
around 10% from the previous year to approximately 3,120 overall market conditions, despite increased sales of certain
* Source: ABRACICLO (the Brazilian Association of Motorcycle, Moped, and
thousand units. Demand in Thailand increased around 4% motorcycle models such as the CBR150R and CB150R. Bicycle Manufacturers)
from the previous year to approximately 1,740 thousand * Based on Honda research. Only includes the following eight countries: Thailand,
units. Demand in Pakistan increased around 9% from the Indonesia, Malaysia, the Philippines, Vietnam, India, Pakistan and China.
previous year to approximately 1,660 thousand units.
Activa (India) Vision (Vietnam)

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Honda Group 2016 2017 2016 2017
Unit Sales*1 / 1,970 1,964 1,970
Consolidated
Unit Sales*2
(Thousands)
Note:
Certain sales of automobiles that 668 684
are financed with residual value 603
type auto loans by our Japanese
finance subsidiaries and sold 184 242 184 242
through our consolidated
subsidiaries are accounted for
as operating leases in conformity
with IFRS and are not included Japan North Europe Asia Other Japan North Europe Asia Other
in consolidated sales revenue to America Regions America Regions
external customers in the
Automobile business. Accord- *1 The total unit sales of completed products of Honda, its consolidated subsidiaries and
ingly, they are not included in its affiliates and joint ventures accounted for using the equity method
consolidated unit sales. *2 The total unit sales of completed products of Honda and its consolidated subsidiaries

by Region Japan ¥ 1,439,959 ¥ 1,453,460 0.9 %
Yen (millions)
North America 6,186,765 5,704,213 (7.8)
Europe 491,204 450,757 (8.2)
Asia 1,962,501 1,948,102 (0.7)
Other Regions 544,976 530,284 (2.7)
Total ¥10,625,405 ¥10,086,816 (5.1)%
Yen (billions)
12,000
9,000
Japan
6,000
North America
Europe
Asia 3,000
Other Regions
0 13 14 15 16 17
CR-V (North America)
U.S. GAAP IFRS

Yen (billions) (%)
Automobile Business 600
450
10.0
7.5
Honda’s consolidated unit sales of automobiles totaled 3,683 thousand units in fiscal year 2017, an increase of 1.3% from the previous
fiscal year, due mainly to increases in sales units in North America and Asia as a result of the launch of new models. 300 5.0
Sales revenue from external customers decreased by ¥538.5 billion, or 5.1%, to ¥10,086.8 billion from the previous fiscal year, due
mainly to negative foreign currency translation effects, which was partially offset by increased consolidated unit sales. 150 2.5
Operating profit increased by ¥347.8 billion, or 226.8%, to ¥501.1 billion from the previous fiscal year, due mainly to decreas ed selling,
general and administrative expenses, including product warranty expenses, continuing cost reduction, an increase in profit attributable 0 13 14 15 16 17 0.0
to increased sales volume and model mix as well as the impact of pension plan amendments, which was partially offset by an increase U.S. GAAP IFRS
in research and development expenses as well as negative foreign currency effects. Operating Profit (left scale) Operating Margin (right scale)
1 The Power of
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Japan North America Europe

Total demand for automobiles in Japan*1 increased around Total industry demand for automobiles in the United States*, Total demand for automobiles in Europe* increased about
3% from the previous fiscal year to approximately 5,070 the principal market within North America, was around the 7% from the previous year to approximately 15,130 thou-
thousand units in fiscal year 2017. same level as the previous year at approximately 17,550 sand units in calendar year 2016, mainly driven by the
Honda’s consolidated unit sales in Japan decreased thousand units in calendar year 2016. This result reflected gradual recovery in economic conditions.
1.8% from the previous fiscal year to 603 thousand units*2 continued strong demand for light trucks, which offset a Honda’s consolidated unit sales in Europe increased
in fiscal year 2017. This was mainly due to a decline in sales decrease in the fiercely competitive passenger car segment. 7.0% from the previous fiscal year to 184 thousand units in
of the Step WGN, which outweighed the positive effect of a Under these conditions, Honda’s consolidated unit sales fiscal year 2017. This was mainly due to brisk sales of the
full model change of the Freed model and other factors. in North America increased 2.1% from the previous fiscal HR-V model.
Honda’s unit production of automobiles in fiscal year year to 1,970 thousand units in fiscal year 2017. This Unit production at Honda’s U.K. plant in fiscal year 2017
2017 increased 6.5% from the previous fiscal year to 810 increase was mainly attributable to the effect of launching increased dramatically by 30.1% from the previous fiscal
thousand units. This was mainly due to an increase in the new Civic Hatchback model, and a full model change of year to 149 thousand units, mainly due to the ramp up of
export volume. the Ridgeline model, which offset a decline in sales volume Civic Hatchback production as well as the start of exports
of the Accord model. of the Civic Hatchback model to North America.
*1 Source: JAMA (Japan Automobile Manufacturers Association), as measured by
the number of regular vehicle registrations (661cc or higher) and mini vehicles Honda manufactured 1,937 thousand units in fiscal year * Source: ACEA (Association des Constructeurs Europeens d’Automobiles (the
(660cc or lower)
2017, an increase of 0.9% from the previous fiscal year. European Automobile Manufacturers’ Association)) New passenger car registra-
*2 Certain sales of automobiles that are financed with residual value type auto loans
tions cover 28 EU countries and three EFTA countries.
by our Japanese finance subsidiaries and sold through our consolidated subsid- This increase mainly reflected increased production of the
iaries are accounted for as operating leases in conformity with IFRS and are not HR-V model in Mexico.
included in consolidated sales revenue to external customers in the Automobile
business. Accordingly, they are not included in consolidated unit sales. * Source: Autodata
Freed (Japan) Civic Hatchback (North America)

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Asia Other Regions

Total demand for automobiles in Asia increased around 4% 1,280 thousand units in fiscal year 2017. The increase was Total industry demand for automobiles in Brazil, the princi-
from the previous year to approximately 7,390 thousand mainly attributable to strong sales of the fully remodeled pal market within Other Regions, decreased around 20%
units*1 in calendar year 2016. This was mainly due to an Civic, the positive effect of new model launches such as from the previous year to approximately 1,980 thousand
increase in demand in India despite decreases in Malaysia the Avancier and Gienia, and brisk sales of the XR-V and units* in calendar year 2016. The decrease was mainly due
and other countries. Total demand for automobiles in China Vezel models. to continued instability in the economic environment.
increased about 14% from the previous calendar year to Honda’s unit production by consolidated subsidiaries in In Other Regions (including South America, the Middle
approximately 28,020 thousand units*2. Asia increased 4.7% from the previous fiscal year to 752 East, Africa, Oceania and other areas), Honda’s consoli-
Honda’s consolidated unit sales in Asia outside Japan thousand units*3 in fiscal year 2017. dated unit sales decreased 3.6% from the previous fiscal
increased 2.1% from the previous fiscal year to 684 thou- Meanwhile, unit production by Chinese joint ventures year to 242 thousand units in fiscal year 2017. The
sand units in fiscal year 2017. This increase was mainly Dongfeng Honda Automobile Co., Ltd. and Guangqi Honda decrease mainly reflected a decrease in unit sales in Brazil.
attributable to brisk sales of the new BR-V model in Automobile Co., Ltd. increased 20.0% from the previous Unit production at Honda’s plant in Brazil decreased
Indonesia and the effect of a full model change of the Civic fiscal year to 1,259 thousand units in fiscal year 2017. 16.5% from the previous fiscal year to 120 thousand units
model in Pakistan, despite a decline in sales in India. in fiscal year 2017.
*1 The total is based on Honda research and includes the following eight countries:
Honda’s consolidated unit sales do not include unit sales of Thailand, Indonesia, Malaysia, the Philippines, Vietnam, Taiwan, India and Pakistan.
* Source: ANFAVEA (Associação Nacional dos Fabricantes de Veiculos Auto-
*2 Source: CAAM (China Association of Automobile Manufacturers)
Dongfeng Honda Automobile Co., Ltd. and Guangqi Honda motores (the Brazilian Automobile Association)). Includes passenger cars and
*3 The total includes the following nine countries: China, Thailand, Indonesia,
light commercial vehicles.
Automobile Co., Ltd. in China, both of which are joint ven- Malaysia, the Philippines, Vietnam, Taiwan, India and Pakistan.
tures accounted for using the equity method. Unit sales in
China increased 21.5% from the previous fiscal year to
BR-V (Asia) Civic (China)

1 The Power of
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Honda Group 2016 2017
Unit Sales / 2,977
Consolidated
Unit Sales
(Thousands)
1,430
1,035
301 378
Japan North Europe Asia Other

America Regions
Note: In power product business, there is no discrepancy between Honda Group Unit
Sales and Consolidated Unit Sales

by Region Japan ¥ 85,275 ¥ 72,629 (14.8)%
Yen (millions)
North America 122,079 129,563 6.1
Europe 62,883 58,096 (7.6)
Asia 41,282 38,903 (5.8)
Other Regions 23,193 18,934 (18.4)
Total ¥334,712 ¥318,125 (5.0)%
Yen (billions)
400
300
Japan
200
North America
Europe
Asia 100
Other Regions
Miimo (Robotic Lawn Mower)
0 13 14 15 16 17
U.S. GAAP IFRS
Review of Operations Operating Profit (Loss) / Operating Margin

Yen (billions) (%)
Power Product and Other Businesses 40
20
20.0
10.0
Honda’s consolidated unit sales of power products in fiscal year 2017 totaled 6,121 thousand units, an increase of 2.6% from the
previous fiscal year primarily due to an increase in sales units in North America and Asia, which more than offset a decline in Japan. 0 0.0
Sales revenue from external customers decreased by ¥16.5 billion, or 5.0%, to ¥318.1 billion from the previous fiscal year, due
mainly to negative foreign currency translation effects, which was partially offset by increased sales revenue in Other businesses. –20 –10.0
Operating loss was ¥9.6 billion, an improvement of ¥21.4 billion from the previous fiscal year, due mainly to a decrease in
operating costs in Other businesses as well as the impact of pension plan amendments, which was partially offset by negative –40 13 14 15 16 17 –20.0
foreign currency effects. In addition, operating loss of aircraft and aircraft engines included in the Power product and other U.S. GAAP IFRS
businesses segment was ¥43.8 billion, an improvement of ¥27.2 billion from the previous fiscal year. Operating Profit (Loss) (left scale) Operating Margin (right scale)
1 The Power of
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Japan Europe Other Regions

Honda’s consolidated unit sales in power product business Honda’s consolidated unit sales in Europe increased 2.7% Honda’s consolidated unit sales in Other Regions (including
operations in Japan decreased 17.1% from the previous from the previous fiscal year to 1,035 thousand units in South America, the Middle East, Africa, Oceania and other
fiscal year to 301 thousand units in fiscal year 2017 mainly fiscal year 2017. This was mostly due to increases in sales areas) decreased 12.9% from the previous fiscal year to
due to a decline in sales of OEM engines* and snow blow- of OEM engines and cordless trimmers. 378 thousand units in fiscal year 2017. This was mainly due
ers, among other factors. to a decrease in sales of OEM engines.
Asia
* OEM (Original Equipment Manufacturer) engines refers to engines installed on
products sold under a third-party brand.
Honda’s consolidated unit sales in Asia increased 6.0%
from the previous fiscal year to 1,430 thousand units in
North America fiscal year 2017. This was mainly due to an increase in
Honda’s consolidated unit sales in North America increased sales of OEM engines, despite a decrease in sales of water
5.9% from the previous fiscal year to 2,977 thousand units pumps and other factors.
in fiscal year 2017. This was mainly attributable to an
increase in sales of OEM engines and generators.
BF5 (Four-stroke outboard engine) EU2000i (Generator)

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Information

The total amount of receivables from financial services and equipment on operating leases of finance sub- Sales 2016 2017 % change
sidiaries on March 31, 2017 increased by ¥368.0 billion, or 4.2%, to ¥9,054.2 billion from the March 31, Revenue by Japan ¥ 162,056 ¥ 210,914 30.1 %
Region
2016. Honda estimates that by applying Japanese yen exchange rates of the previous fiscal year to the Yen (millions) North America 1,619,201 1,616,234 (0.2)
current fiscal year, total amount of receivables from financial services and equipment on operating leases Europe 14,490 12,100 (16.5)
of finance subsidiaries as of March 31, 2017 would have increased by approximately ¥434.8 billion, or Asia 12,615 10,556 (16.3)
5.0%, compared to the increase as reported of ¥368.0 billion, which includes negative foreign currency Other Regions 27,243 28,290 3.8
translation effects.
Total ¥1,835,605 ¥1,878,094 2.3 %
Sales revenue from external customers increased by ¥42.4 billion, or 2.3%, to ¥1,878.0 billion from the
previous fiscal year, due mainly to an increase in operating lease revenues and revenues on disposition of
lease vehicles, which was partially offset by negative foreign currency translation effects. Honda estimates Yen (billions)
that by applying Japanese yen exchange rates of the previous fiscal year to the current fiscal year, sales 2,000
revenue for the year would have increased by approximately ¥210.9 billion, or 11.5%, compared to the
increase as reported of ¥42.4 billion, which includes negative foreign currency translation effects. Sales 1,500
revenue, including intersegment sales, increased by ¥41.5 billion, or 2.2%, to ¥1,891.2 billion from the 1,000
Japan
North America
previous fiscal year. Europe
Operating costs and expenses increased by ¥62.4 billion, or 3.8%, to ¥1,712.8 billion from the previous Asia 500
fiscal year. Cost of sales increased by ¥61.5 billion, or 4.0%, to ¥1,608.7 billion from the previous fiscal Other Regions
0 13 14 15 16 17
year, due mainly to an increase in costs attributable
U.S. GAAP IFRS
to increased operating lease revenues and rev-
enues on disposition of lease vehicles. Selling,
Receivables from Financial Services / Equipment on Operating Leases
general and administrative expenses increased by * In fiscal 2013, the above were named “Finance Receivables” and “Property on Operating Leases”, and stated in accordance with
U.S. GAAP.
¥0.9 billion, or 0.9%, to ¥104.1 billion.
Operating profit decreased by ¥20.9 billion, or Yen (billions) 2013 2014 2015 2016 2017
10.5 %, to ¥178.4 billion from the previous fiscal year, Receivables from
¥4,031.1 ¥5,351.2 ¥5,683.6 ¥5,008.0 ¥4,949.5
due mainly to increased selling, general and adminis- Financial Services
trative expenses as well as negative foreign currency Equipment on
1,843.1 2,427.4 3,335.3 3,678.1 4,104.6
effects, which was partially offset by an increase in Operating Leases
profit attributable to increased sales revenue. Total ¥5,874.2 ¥7,778.6 ¥9,018.9 ¥8,686.1 ¥9,054.2

Yen (billions) (%)
Financial Services Business 200
150
40.0
30.0
To support the sale of its products, Honda provides retail lending and leasing to customers and wholesale financing to dealers
through its finance subsidiaries in Japan, the United States, Canada, the United Kingdom, Germany, Brazil and Thailand. 100 20.0
50 10.0
0 13 14 15 16 17 0.0
U.S. GAAP IFRS
Operating Profit (left scale) Operating Margin (right scale)
1 The Power of
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Information
ESG Information
Environment Social Activity Safety
Honda’s Environment Statement / President and CEO and comprised of members of Honda Social Activity Toward a Collision-Free Mobile Society
Honda Environmental and Safety Vision company management. In 1995, the committee Since the Company was founded, Honda has As exemplified by the remark of the Company’s
Ever since the 1960s, Honda has actively endeavored became the World Environmental Committee and sought to contribute to society and customers by founder Soichiro Honda that “as long as we are han-
to solve environmental problems. We developed the assumed responsibility for discussing and formulating creating quality products and technologies while coex- dling a mode of transportation, we are entrusted with
low-pollution CVCC engine that successfully reduced plans for environmental protection activities worldwide. isting harmoniously with the communities that host its human lives,” Honda is, on the basis of the concept of
carbon monoxide, hydrocarbon and nitrogen oxide Since then, it has continued to meet every year as the operations. In the 1960s, while the Company was still safe coexistence, aiming at a collision-free mobile
(NOx) emissions, and we were the world’s first auto- World Environment and Safety Strategy Committee. in a period of early growth, Honda began to launch society, where not only drivers and riders, but indeed
maker to comply with the U.S. Clean Air Act in the Medium- and long-term environmental policies and philanthropic initiatives designed to strengthen ties with everyone sharing the road, can safely and confidently
1970s—a regulation which was said to be the most plans at the global level are formulated at World local communities. enjoy the freedom of mobility.
stringent in the world at the time. Environment and Safety Strategy Committee on the Currently, Honda undertakes various social activities For that reason, Honda is conducting safety pro-
In 1992, Honda’s Environment Statement was basis of Company-wide direction and medium- and in the six regions of the Company’s worldwide opera- motion activities in three areas: “Human (Safety
released to serve as the Company’s guideline for all long-term business plans. All committee members are tions, aiming to share joy with people all around the Education),” “Technology (Vehicle Technologies)” and
environmental initiatives. The statement articulates the involved in the decision-making process. world and to become a company society wants to “Communication (Telecommunication Networks).”
basic stance we had developed until then to reduce Following the decisions made at the above meeting, exist. Honda also strives to support initiatives that However, issues concerning the traffic environment
environmental impact at every stage in the life cycle of the World’s Six Region Environmental Committee, reflect local circumstances in its corporate activities are diverse and vary from region to region, such as
our products, from product procurement to design, made up of the environmental divisions of each regional overseas. In order to be able to share joy, Honda will the over-concentration of traffic or poor infrastructure.
development, production, transportation, sale, use headquarters, also meets every year. Once the infor- continue to pursue various social activities while com- Against this backdrop, Honda is rolling out initiatives
and disposal. mation sharing process at these meetings is over, municating with customers and local residents. that combine the three areas of “Human,” “Technol-
In addition, for Honda to further promote the above- these divisions formulate concrete action plans and ogy” and “Communication” in line with the actual
mentioned environmental initiatives and continue to be then implement policy. Basic Approach conditions existing in each region.
a company that society wants to exist, the Honda In terms of the progress of Honda’s environmental Honda establishes foundational principles and global In Thailand, for example, safety measures are an
Environmental and Safety Vision was established in initiatives and the themes applicable worldwide, the directions that represent its basic approach toward urgent challenge due to the large number of traffic
2011. Aimed at the realization of the joy and freedom Corporate Planning Supervisory Unit collects informa- social activities. These clearly stated principles and fatalities in particular compared with other parts of
of mobility and a sustainable society where people can tion from regional operations and reports it at the directions demonstrate the Company’s determination Asia. In response, from 2016 through 2020 Honda
enjoy life as is declared in this vision, each of Honda’s meeting of the World Environment and Safety Strategy to passionately take part in activities related to educa- has committed to conducting a detailed investigation
global business sites are engaging in the reduction of Committee. tional, environmental, community, and traffic safety involving collection and analysis of information on
all kinds of environmental impacts from the aspects of The Company is striving to continuously enhance initiatives that will help create a future society in which around 1,000 traffic accidents in Thailand. The investi-
both production-based and corporate activities, begin- environmental management through the reflection of everyone can pursue their dreams. gation first pinpoints the fundamental cause of each
ning with greenhouse gas (GHG) emissions, which are the above information in the medium-term business Honda pursues a variety of activities in six regions, accident. Based on the knowledge accumulated,
considered to be a cause of climate change; use of plan and policy for the following term and the imple- taking advantage of its unique management resources Honda plans to develop activities to promote more
resources, including water and minerals; and suitable mentation of the plan-do-check-action (PDCA) cycle by in line with these principles and directions. suitable safe driving practices in the area of “Human”
processing and reduction of waste. each regional operation and environmental division. and connect this to the development of more effective
Honda will conduct these activities while sharing the Beginning in FY2018, environmental issues will be safety-related technology in the area of “Technology.”
Honda Environment Statement with everyone associ- incorporated as items to be considered at the Sustain- This initiative is being expanded gradually in the
ated with Honda—including suppliers and distributors ability Strategy Committee for integrated discussions respective regions of Asia and Oceania.
in addition to Honda Group companies—in order to under a single committee.
realize this vision.
Environmental Management System
Environmental Management Promotion As of March 2017, Honda’s existing global vehicle
Structure and Management Cycle assembly and product assembly plants had acquired
Recognizing that environmental issues such as ISO 14001, an international certification for environ-
climate change and energy/resource issues, which mental management systems. Honda is in the process
require global responses, are material issues that of obtaining certification for newly built plants.
impact Honda’s business operations, the Environmen- Therefore, coverage of environmental management
tal Committee was established in 1991, chaired by the systems is virtually 100%.
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Corporate Governance
Basic Approach Corporate Governance Structure (as of June 15, 2017)

Honda strives to enhance corporate governance as one of the most
important tasks for its management, based on the Company’s basic General Meeting of Shareholders
principle, in order to strengthen the trust of our shareholders and
Election/ Election/ Election/
investors, customers and society; encourage timely, decisive and risk- Dismissal Dismissal Dismissal
Coop-
considered decision-making; seek sustainable growth and the Audit
Audit and Supervisory Committee eration
Board of Directors Accounting
enhancement of corporate value over the mid- to long-term; and 5 Directors
14 Directors (including 5 Outside Directors)
(including 3 Outside Directors) Auditors
become “a company that society wants to exist.”
Election/Dismissal/ Proposal/
The resolution has been approved in a regular shareholders’ meet- Supervision/
Report Assistance Audit
Delegation of authority
ing held on the 15th of June 2017 and the Company is adopting a
Executive Council Audit and Supervisory
“company with an Audit and Supervisory Committee” system with the Committee Division
(Representative Directors and Executive Directors)
aim of reinforcing the supervisory function of the Board of Directors and Report
Report
ensuring the prompt decision-making. Under the system, the Company Report Report
operates the Audit and Supervisory Committee, which consists of
directors, to delegate the authority to directors from the Board of Business Report
Ethics Compliance Risk Management
Directors and accelerate the separation of the supervisory function Improvement Officer Officer
and business execution function. Proposal Line Super-
vision/ Proposal/
Honda is making efforts to appropriately disclose corporate informa- Delegation Report Audit Division
Compliance Global Emergency of authority
tion including the release and disclosure of quarterly financial results and Committee Headquarters
management policies in a timely and accurate manner to bolster trust and
Proposal
appreciation from shareholders and investors and society. Going forward, Compliance Risk Management
we will continue to strive to ensure the transparency of our management.
Report Report
Overview of corporate governance (as of June 15, 2017)

Respective Operations Internal audit
Form of organization Company with Audit and Supervisory Committee
(Regional/Business/Functional)/Subsidiaries
● Number of Directors
(excluding Audit and Supervisory Committee Members) ......................9
Number of Outside Directors ............................................................2
Please refer to the Honda SUSTAINABILITY REPORT
Number of Specified Independent Directors .....................................2 for details on ESG information.
Number of Female Directors.............................................................1 http://world.honda.com/sustainability/
● Term of Directors
(excluding Audit and Supervisory Committee Members) . . . . . . 1 year
● Number of Directors serving as Audit and
Supervisory Committee Members ........................................................5
Number of Outside Directors ............................................................3
Number of Specified Independent Auditors ......................................3
Number of Female Outside Directors ...............................................1
● Term of Directors serving as Audit and
Supervisory Committee Members . . . . . . . . . . . . . . . . . . . . . . 2 years
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Risk Factors
Risks Relating to Honda’s Industry Legal and Regulatory Risks

Honda is subject to various governmental regulations
Honda may be adversely affected by market conditions Honda conducts business operations in countries worldwide. As such, changes in
Honda conducts its operations in Japan and throughout the world, including North regulations in these countries related to emissions, fuel economy, noise, vehicle
America, Europe and Asia. A sustained loss of consumer confidence in these safety, factory pollution levels, climate change or other factors could adversely
markets, which may be caused by an extended economic slowdown, recession, affect Honda’s business, financial condition, or results.
changes in consumer preferences, rising fuel prices, financial crisis or other factors
could trigger a decline in demand for motorcycles, automobiles and power prod- Honda is reliant on the protection and preservation of its
ucts that may adversely affect Honda’s results. intellectual property
Honda owns or otherwise has rights in a number of patents and trademarks relat-
Prices for products may fluctuate ing to the products it manufactures, which have been obtained over a period of
Prices for motorcycles, automobiles and power products in certain markets may years. These patents and trademarks have been of value in the growth of Honda’s
experience sharp changes over short periods of time. This volatility may be caused business and will continue to be of value in the future. Honda does not regard any
by various factors, including fierce competition, short-term fluctuations in demand of its business operations as being dependent upon any single patent or related
caused by instability in underlying economic conditions, changes in tariffs, import group of patents. However, an inability to protect this intellectual property gener-
regulations and other taxes, shortages of certain materials and parts, a steep rise in ally, or the illegal infringement of some or a large group of Honda’s intellectual
material prices and sales incentives. There is no guarantee that such price volatility property rights, could have an adverse effect on Honda’s operations.
will not continue for an extended period of time or that price volatility will not occur
in markets that to date have not experienced such volatility. Honda may be subject to legal proceedings
Overcapacity within the industry has increased and will likely continue to Honda could be subject to suits, various investigations and legal proceedings
increase if the economic downturn continues in Honda’s major markets, leading, under relevant laws and regulations of various jurisdictions. A negative outcome in
potentially, to further increased price volatility. Price volatility in any of Honda’s any such current or future legal proceedings brought against Honda could
markets could adversely affect Honda’s results. adversely affect Honda’s business, financial condition or results.
Risks Relating to Honda’s Operations

Risks Relating to Honda’s Business in General Honda’s Financial services business conducts business under highly
competitive conditions in an industry with inherent risks Honda’s
Currency and Interest Rate Risks Financial services business offers various financing plans to its customers designed
Honda’s operations are subject to currency fluctuations to increase the opportunity for sales of its products. However, customers can also
Honda has manufacturing operations throughout the world, including Japan, and obtain financing for the lease or purchase of Honda’s products through a variety of
exports products and components to various countries. other sources that compete with our financing services, including commercial
Honda purchases materials and components and sells its products and banks and finance and leasing companies. The financial services offered by Honda
components in foreign currencies. Therefore, currency fluctuations could affect involve credit risk as well as risks relating to lease residual values, cost of capital
Honda’s pricing of materials purchased and products sold. Accordingly, currency and access to funding. Competition for customers and/or these risks may affect
fluctuations have an effect on Honda’s results and financial condition, as well as Honda’s results.
Honda’s competitiveness, which will over time affect its results.
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Honda relies on external suppliers for the provision of certain raw information handled by these systems and networks, Honda implements a range of
materials and parts security measures both in hardware and software, such as building management
Honda purchases raw materials and parts from numerous external suppliers, and systems including those of subcontractors, information-handling procedures and
relies on certain suppliers for some of the raw materials and parts which it uses in training of staff. However, there is a risk of leakage of confidential information,
the manufacture of its products. Honda’s ability to continue to obtain these sup- suspension of important operations and services, improper administrative pro-
plies in an efficient and cost-effective manner is subject to a number of factors, cessing, destruction or alteration of important data or other adverse developments.
some of which are outside of Honda’s control. These factors include the ability of its These may be the result of external cyber-attacks, equipment malfunction, or
suppliers to provide a continued source of raw materials and parts and Honda’s management deficiencies and human error, as well as natural disasters, infrastruc-
ability to compete with other users in obtaining the supplies. In particular, the loss ture failures, or other unforeseen events within Honda or at its subcontractors. In
of a key supplier could affect our production and increase our costs. such cases, Honda’s business activities and performance could be adversely
affected in terms of damage to its brand image or social reputation, liability to
Honda relies on business alliances and joint ventures with customers or parties affected, and a loss of Honda’s competitiveness.
other companies
Honda engages in business operations through alliances and joint ventures with Honda is subject to risks relating to its obligations to provide
other companies in expectation of synergy effects and increased efficiency, or in post-employment benefits
accordance with requirements from the countries in which Honda conducts its Honda has various pension plans and provides other post-employment benefits, in
businesses. However, if disagreements occur between the parties to an alliance or which the amount of benefits is basically determined based on the level of salary,
joint venture, or if an alliance or joint venture is changed or cancelled, it may have service years, and other factors. Contributions are also regularly reviewed and
an adverse effect on Honda’s business, financial condition, or results. adjusted as necessary to the extent permitted by laws and regulations. Defined
benefit obligations and defined benefit costs are based on assumptions of many
Honda may be adversely affected by wars, terrorism, political factors, including the discount rate and the rate of salary increase. Changes in
uncertainty and labor strikes assumptions could affect Honda’s defined benefit costs and obligations, including
Honda conducts business operations in countries worldwide and is exposed to Honda’s cash requirements to fund such obligations in the future, which could
risks including wars, terrorism, political uncertainty and labor strikes in those materially affect Honda’s financial condition and results.
countries or neighboring regions. If such unforeseeable events occur, and opera-
tions are delayed or suspended, Honda’s business, financial condition, or results Honda’s success depends in part on the value of its brand image,
could be adversely affected. which could be diminished by product defects
One of the important factors behind corporate sustainability is trust and support
Honda may be adversely affected by natural disasters for the Honda brand from our customers, society and the communities in which
In order to minimize the impact on its business operations when events such as Honda conducts business operations. With respect to the quality of our products,
large-scale natural disasters, accidents, or the outbreak of infectious diseases which serves as the pillar of our brand image, we recognize that our mainstay
occur, Honda conducts a risk evaluation of these events and constructs business products provide personal mobility and touch human lives, so we place top priority
continuity plans (BCPs). However, if operations are delayed or suspended due to on the safety and security of our customers and constantly strive to further
the occurrence of disasters, accidents, or the outbreak of infectious diseases that enhance the quality of our development, production and service-related activities.
exceed assumptions, Honda’s business, financial condition or results could be However, if for some unforeseeable reason a product defect does occur, from the
adversely affected. standpoint of assuring the safety and security of our customers, it is possible that
Honda will issue a recall or take some other action considered to be appropriate.
Honda’s operations rely on information systems and networks In such an event, the Honda brand image could be damaged and this could
Honda uses a range of information systems and networks relating to information adversely impact Honda’s business operations as well as our results.
services and operational support in its business activities and its products, includ-
ing in areas managed by subcontractors. To protect the confidentiality of
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Board of Directors and Operating Officers
Senior Managing Director Senior Managing Director Senior Managing Director Senior Managing Director
Yoshi Yamane Yoshiyuki Matsumoto Toshiaki Mikoshiba Kohei Takeuchi
Executive Vice President

President and Representative Director and Representative Director
Chief Executive Officer Chief Operating Officer
Takahiro Hachigo Seiji Kuraishi
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Directors
Executive Vice President
President and and Representative Director Senior Managing Director Kohei
Representative Chief Operating Officer Senior Managing Director
Toshiaki Takeuchi
Director Seiji Yoshiyuki Mikoshiba Yoshi · Chief Financial Officer
(Accounting, Finance,
Chief Executive Kuraishi Matsumoto · In Charge of Sales and Yamane Human Resources, Corporate
Officer · In Charge of Strategy, · In Charge of Research & Marketing · In Charge of Production Governance and IT)
Business Operations and Development (Research & · President and Chief (Production, Purchasing, · Chief Officer for Business
Takahiro Regional Operations
· Risk Management Officer
Development, Intellectual
Property and
Executive Officer of
American Honda Motor
Quality, Parts and Service)
· Chief Officer for Production
Management Operations
· Chief Officer for Driving Safety
Hachigo · Corporate Brand Officer Standardization) Co., Inc. Operations Promotion Center
Director and
Director Director Advisor
Hideko Motoki Takanobu
Kunii Ozaki Ito
Directors (Audit and Supervisory Committee Members)
Director (Audit Director (Audit Director Director Director

and Supervisory and Supervisory (Audit and (Audit and (Audit and
Committee Committee Supervisory Supervisory Supervisory
Member) Member) Committee Committee Committee
(full-time) (full-time) Member) Member) Member)
Masahiro Masafumi Toshiaki Hideo Mayumi
Yoshida Suzuki Hiwatari Takaura Tamura
*1 Hideko Kunii, Motoki Ozaki, Toshiaki

Hiwatari, Hideo Takaura and Mayumi Tamura
are Outside Directors as provided for in
Article 2, Item 15 of the Company Law.
*2 Hideko Kunii, Motoki Ozaki, Toshiaki
Hiwatari, Hideo Takaura and Mayumi Tamura
have been designated by the Company as
Independent Directors as provided for in the
rules of the Tokyo Stock Exchange and
registered with the Tokyo Stock Exchange.
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Operating Officers
Managing Officers
Toshihiko Nonaka Takashi Sekiguchi Soichiro Takizawa Michimasa Fujino
President, Chief Executive Officer and Chief Officer for Automobile Operations Senior Executive Vice President and President and Director of Honda Aircraft
Representative Director of Honda Executive in Charge of Sales Strategy, Director of Honda North America, Inc. Company, LLC
Engineering Co., Ltd. Automobile Operations
Executive in Charge of Corporate Project
Operating Officers
Naoto Matsui Toshihiro Mibe Kazuhiro Odaka Katsushi Inoue
Chief Officer for Purchasing Operations Senior Managing Officer and Director of Chief Officer for Human Resources and Chief Officer for Regional Operations
Honda R&D Co., Ltd. Corporate Governance Operations (Europe Region)
Mitsugu Matsukawa Compliance Officer President and Director of Honda Motor
Yusuke Hori Europe Ltd.
Executive in Charge of Strategy, New Model
and Supply Chain Management for Production Head of Regional Unit Masayuki Igarashi
Operations (Africa & the Middle East) Executive Vice President and Director of Kimiyoshi Teratani
Honda North America, Inc. Chief Officer for Regional Operations (Japan)
Shinji Aoyama Tomomi Kosaka Executive Vice President and Director of
Chief Officer for Regional Operations Vice President of Fuel Cell System American Honda Motor Co., Inc. Asako Suzuki
(Asia & Oceania) Manufacturing LLC General Manager of Marketing and Product
President and Director of Asian Honda Motor Hiroyuki Kachi Planning Division for Regional Operations (Japan)
Co., Ltd. Noriaki Abe Chief Officer for IT Operations
Chief Officer for Motorcycle Operations Executive in Charge of Corporate Project Katsuhisa Okuda
Noriya Kaihara Chief Officer for Power Product Operations
Chief Officer for Customer First Operations Toshiyuki Shimabara Soichi Yamamoto
Chief Quality Officer Executive Vice President and Director of Executive Vice President and Director of Honda Katsuhide Moriyama
Honda North America, Inc. Motor Europe Ltd.
Chief Officer for Brand and Communication
Tetsuo Suzuki President and Director of Honda of America Managing Director of Honda of the U.K. Operations
Mfg., Inc. Manufacturing Ltd.
Representative of Motorcycle DEB for Motorcycle
Operations
Yasuhide Mizuno
Issao Mizoguchi Chief Officer for Regional Operations (China)
Chief Officer for Regional Operations President of Honda Motor (China) Investment
(Latin America) Co., Ltd.
President and Director of Honda South President of Honda Motor Technology (China)
America Ltda. Co., Ltd.
President and Director of Honda Automoveis
do Brazil Ltda.
President and Director of Moto Honda da
Amazonia Ltda.
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Financial Section: Financial Review

The consolidated financial statements of the Company in this Annual Report have partially offset by a decrease in costs attributable to the impact of pension plan
been prepared in accordance with IFRS, as issued by IASB. amendments.
Operating Profit
Operating and Financial Review Operating profit increased by ¥337.3 billion, or 67.0%, to ¥840.7 billion from the
previous fiscal year, due mainly to decreased selling, general and administrative
Sales Revenue expenses including product warranty expenses, continuing cost reduction,
Honda’s consolidated sales revenue for the fiscal year ended March 31, 2017, increase in profit attributable to increased sales revenue and model mix as well as
decreased by ¥601.9 billion, or 4.1%, to ¥13,999.2 billion from the fiscal year ended the impact of pension plan amendments, which was partially offset by an increase
March 31, 2016, due mainly to negative foreign currency translation effects, which in research and development expenses as well as negative foreign currency
was partially offset by increased consolidated unit sales in all business operations as effects. Honda estimates that by excluding negative foreign currency effects of
well as an increase in sales revenue in the Financial services business. Honda esti- approximately ¥283.2 billion, operating profit would have increased by approxi-
mates that by applying Japanese yen exchange rates of the previous fiscal year to mately ¥620.5 billion.
the current fiscal year, sales revenue for the year would have increased by approxi-
mately ¥722.6 billion, or 4.9%, compared to the decrease as reported of ¥601.9 With respect to the discussion above of the changes, management identified
billion, which includes negative foreign currency translation effects. factors and used what it believes to be a reasonable method to analyze the respec-
tive changes in such factors. Management analyzed changes in these factors at the
Operating Costs and Expenses levels of the Company and its material consolidated subsidiaries. “Foreign currency
Operating costs and expenses decreased by ¥939.2 billion, or 6.7%, to ¥13,158.4 effects” consist of “translation adjustments,” which come from the translation of the
billion from the previous fiscal year. Cost of sales decreased by ¥466.5 billion, or currency of foreign subsidiaries’ financial statements into Japanese yen, and
4.1%, to ¥10,865.8 billion from the previous fiscal year, due mainly to the impact “foreign currency adjustments,” which result from foreign-currency-denominated
of pension plan amendments as well as positive foreign currency effects, which transaction. With respect to “foreign currency adjustments,” management analyzed
was partially offset by an increase in costs attributable to increased consolidated foreign currency adjustments primarily related to the following currencies: U.S.
unit sales in all business operations. Selling, general and administrative expenses dollar, Japanese yen and others at the level of the Company and its material con-
decreased by ¥507.6 billion, or 24.1%, to ¥1,601.2 billion from the previous fiscal solidated subsidiaries.
year, due mainly to decreased product warranty expenses as well as the impact of
pension plan amendments. Research and development expenses increased by The estimates excluding the foreign currency effects are not on the same base
¥34.9 billion, or 5.3%, to ¥691.4 billion from the previous fiscal year, which was as Honda’s consolidated financial statements, and do not conform to IFRS.
Furthermore, Honda does not believe that these measures are substitute for the
disclosure required by IFRS. However, Honda believes that such estimates exclud-
ing the foreign currency effects provide financial statements users with additional
Sales Revenue Yen (billions) useful information for understanding Honda’s results.
* In fiscal 2013, the above was named
“Net Sales and Other Operating 15,000
Revenue” and stated in accordance Profit before Income Taxes
with U.S. GAAP.
Fiscal years ended March 31 Profit before income taxes increased by ¥371.5 billion, or 58.5%, to ¥1,006.9
10,000
billion. The main factors behind this increase, except factors relating to operating
profit, are as follows:
5,000 Share of profit of investments accounted for using the equity method had a
positive impact of ¥38.7 billion, due mainly to an increase in profit attributable to
increased sales revenue at affiliates and joint ventures in Asia.
0
13 14 15 16 17
U.S. GAAP IFRS
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Finance income and finance costs had a negative impact of ¥4.5 billion, due
mainly to effect from gains or losses on derivatives.
Income Tax Expense

Income tax expense increased by ¥98.5 billion, or 43.0%, to ¥327.5 billion from
the previous fiscal year. The average effective tax rate decreased 3.6 percentage
points to 32.5% from the previous fiscal year.
Profit for the Year

Profit for the year increased by ¥273.0 billion, or 67.2%, to ¥679.3 billion from the
previous fiscal year.
Profit for the Year Attributable to Owners of the Parent

Profit for the year attributable to owners of the parent increased by ¥272.0 billion,
or 79.0%, to ¥616.5 billion from the previous fiscal year.
Profit for the Year Attributable to Non-controlling Interests

Profit for the year attributable to non-controlling interests increased by ¥0.9 billion,
or 1.6%, to ¥62.8 billion from the previous fiscal year.
Profit for the Year Yen (billions) (Yen)

Attributable to Owners of
800 400
the Parent/Basic Earnings
per Share Attributable to
Owners of the Parent 600 300
* In fiscal 2013, the above were named “Net
Income Attributable to Honda Motor Co., Ltd.”
and “Basic Net Income Attributable to Honda
Motor Co., Ltd. per Common Share”, and 400 200
stated in accordance with U.S. GAAP.
Fiscal years ended March 31
200 100
Profit for the Year Attributable to
Owners of the Parent (left scale)
Basic Earnings per Share 0 0
Attributable to Owners of 13 14 15 16 17
the Parent (right scale) U.S. GAAP IFRS
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Consolidated Statements of Financial Position

March 31, 2016 and 2017
Yen (millions) Yen (millions)
Assets 2016 2017 Liabilities and Equity 2016 2017
Current assets: Current liabilities:

Trade payables ¥ 1,128,041 ¥ 1,183,344
Cash and cash equivalents ¥ 1,757,456 ¥ 2,105,976 Financing liabilities 2,789,620 2,786,928
Trade receivables 826,714 764,026 Accrued expenses 384,614 417,736
Other financial liabilities 89,809 119,784
Receivables from financial services 1,926,014 1,878,938 Income taxes payable 45,872 45,507
Other financial assets 103,035 149,427 Provisions 513,232 348,095
Other current liabilities 519,163 527,448
Inventories 1,313,292 1,364,130 Total current liabilities 5,470,351 5,428,842
Other current assets 315,115 292,970
Non-current liabilities:
Total current assets 6,241,626 6,555,467 Financing liabilities 3,736,628 4,022,190
Other financial liabilities 47,755 47,241
Retirement benefit liabilities 660,279 494,131
Non-current assets: Provisions 264,978 248,935
Investments accounted for using Deferred tax liabilities 789,830 900,450
the equity method 593,002 597,262 Other non-current liabilities 227,685 246,708
Total non-current liabilities 5,727,155 5,959,655
Receivables from financial services 3,082,054 3,070,615 Total liabilities 11,197,506 11,388,497
Other financial assets 335,203 364,612
Equity:
Equipment on operating leases 3,678,111 4,104,663 Common stock 86,067 86,067
Property, plant and equipment 3,139,564 3,200,378 Capital surplus 171,118 171,118
Treasury stock (26,178) (26,189)
Intangible assets 824,939 778,192 Retained earnings 6,194,311 6,712,894
Deferred tax assets 180,828 121,509 Other components of equity 336,115 351,406
Equity attributable to owners of
Other non-current assets 153,967 165,425 the parent 6,761,433 7,295,296
Total non-current assets 11,987,668 12,402,656 Non-controlling interests 270,355 274,330
Total equity 7,031,788 7,569,626
Total assets ¥18,229,294 ¥18,958,123 Total liabilities and equity ¥18,229,294 ¥18,958,123
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Consolidated Statements of Income

Years ended March 31, 2016 and 2017
Yen (millions)
2016 2017
Sales revenue ¥ 14,601,151 ¥ 13,999,200
Operating costs and expenses:

Cost of sales (11,332,399) (10,865,848)
Selling, general and administrative (2,108,874) (1,601,212)
Research and development (656,502) (691,429)
Total operating costs and expenses (14,097,775) (13,158,489)
Operating profit 503,376 840,711
Share of profit of investments accounted for using the equity method 126,001 164,793
Finance income and finance costs:
Interest income 28,468 32,389
Interest expense (18,146) (12,471)
Other, net (4,249) (18,436)
Total finance income and finance costs 6,073 1,482
Profit before income taxes 635,450 1,006,986
Income tax expense (229,092) (327,592)
Profit for the year ¥ 406,358 ¥ 679,394
Profit for the year attributable to:

Owners of the parent ¥ 344,531 ¥ 616,569
Non-controlling interests 61,827 62,825
Yen
2016 2017
Earnings per share attributable to owners of the parent
Basic and diluted ¥ 191.16 ¥ 342.10
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Consolidated Statements of Comprehensive Income

Yen (millions)
2016 2017
Profit for the year ¥ 406,358 ¥679,394
Other comprehensive income, net of tax:

Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans (70,709) 58,154
Net changes in revaluation of financial assets measured at fair value through other comprehensive income (15,797) 22,707
Share of other comprehensive income of investments accounted for using the equity method (1,274) 3,262
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations (430,152) 8,064
Share of other comprehensive income of investments accounted for using the equity method (36,591) (22,644)
Total other comprehensive income, net of tax (554,523) 69,543
Comprehensive income for the year ¥(148,165) ¥748,937
Comprehensive income for the year attributable to:

Owners of the parent ¥(188,580) ¥696,079
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Consolidated Statements of Cash Flows

2016 2017 2016 2017
Cash flows from operating activities: Cash flows from investing activities:
Profit before income taxes ¥ 635,450 ¥ 1,006,986 Payments for additions to property,
Depreciation, amortization and plant and equipment ¥ (635,176) ¥ (494,132)
impairment losses excluding equipment Payments for additions to and internally
on operating leases 660,714 674,329 developed intangible assets (236,783) (143,320)
Share of profit of investments accounted Proceeds from sales of property,
for using the equity method (126,001) (164,793) plant and equipment and intangible assets 25,617 18,710
Finance income and finance costs, net (982) (55,911) Payments for acquisitions of subsidiaries,
Interest income and interest costs net of cash and cash equivalents acquired — (2,835)
from financial services, net (151,374) (119,953) Payments for acquisitions of investments
Changes in assets and liabilities accounted for using the equity method (3,238) (547)
Trade receivables (88,173) 49,217 Proceeds from sales of investments
accounted for using the equity method 3,237 16,208
Inventories 66,405 (72,144)
Payments for acquisitions of other
Trade payables 105,189 12,999
financial assets (173,761) (222,464)
Accrued expenses 32,151 50,339
Proceeds from sales and redemptions of
Provisions and retirement benefit liabilities 329,391 (252,837) other financial assets 145,414 177,762
Receivables from financial services 354,353 40,525 Other, net (387) —
Equipment on operating leases (558,826) (435,503) Net cash used in investing activities (875,077) (650,618)
Other assets and liabilities 20,765 71,940 Cash flows from financing activities:
Other, net 4,851 998 Proceeds from short-term financing liabilities 8,302,231 8,207,530
Dividends received 105,477 121,770 Repayments of short-term financing liabilities (8,708,320) (8,129,295)
Interest received 233,873 220,947 Proceeds from long-term financing liabilities 1,826,991 1,902,448
Interest paid (92,355) (99,607) Repayments of long-term financing liabilities (1,267,290) (1,622,603)
Income taxes paid, net of refund (139,913) (164,229) Dividends paid to owners of the parent (158,601) (162,205)
Net cash provided by operating activities 1,390,995 885,073 Dividends paid to non-controlling interests (40,331) (35,059)
Purchases and sales of treasury stock, net (13) (11)
Other, net (49,966) (45,382)
Net cash provided by (used in)
financing activities (95,299) 115,423
Effect of exchange rate changes on
cash and cash equivalents (134,893) (1,358)
Net change in cash and cash equivalents 285,726 348,520
Cash and cash equivalents at
beginning of year 1,471,730 1,757,456
Cash and cash equivalents at end of year ¥ 1,757,456 ¥ 2,105,976
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Segment Information
Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Power product and other businesses, which are based
on Honda’s organizational structure and characteristics of products and services. Operating segments are defined as the components of Honda for which separate
financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The
accounting policies used for these reportable segments are consistent with the accounting policies used in the Company’s consolidated financial statements.
Segment Information
Segment information as of and for the years ended March 31, 2016 and 2017 is as follows:
As of and for the year ended March 31, 2016
Yen (millions)
Financial Power Product
Motorcycle Automobile Services and Other Segment Reconciling
Business Business Business Businesses Total Items Consolidated
Sales revenue:
External customers ¥1,805,429 ¥10,625,405 ¥1,835,605 ¥334,712 ¥14,601,151 ¥ — ¥14,601,151
Intersegment — 142,280 14,095 17,532 173,907 (173,907) —
Total 1,805,429 10,767,685 1,849,700 352,244 14,775,058 (173,907) 14,601,151
Segment profit (loss) 181,773 153,366 199,358 (31,121) 503,376 — 503,376
Segment assets 1,412,404 7,493,086 9,071,874 333,586 18,310,950 (81,656) 18,229,294
Depreciation and amortization 76,267 564,631 622,874 13,770 1,277,542 — 1,277,542
Capital expenditures 73,541 796,209 1,972,647 18,251 2,860,648 — 2,860,648
As of and for the year ended March 31, 2017

Yen (millions)
Financial Power Product
Motorcycle Automobile Services and Other Segment Reconciling
Business Business Business Businesses Total Items Consolidated
Sales revenue:
External customers ¥1,716,165 ¥10,086,816 ¥1,878,094 ¥318,125 ¥13,999,200 ¥ — ¥13,999,200
Intersegment — 169,850 13,188 31,567 214,605 (214,605) —
Total 1,716,165 10,256,666 1,891,282 349,692 14,213,805 (214,605) 13,999,200
Segment profit (loss) 170,740 501,181 178,449 (9,659) 840,711 — 840,711
Segment assets 1,505,637 7,543,388 9,437,044 312,303 18,798,372 159,751 18,958,123
Depreciation and amortization 79,398 576,546 664,940 14,544 1,335,428 — 1,335,428
Capital expenditures 66,241 607,629 1,886,607 12,272 2,572,749 — 2,572,749
Explanatory notes:
1. Intersegment sales revenues are generally made at values that approximate arm’s-length prices.
2. Reconciling items include elimination of intersegment transactions and balances as well as unallocated corporate assets. Unallocated corporate assets, included in reconciling items as of March 31, 2016 and 2017
amounted to ¥451,387 million and ¥530,809 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.
1 The Power of
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Information
Unaudited Consolidated Statements of Financial Position

Divided into Non-financial Services Businesses and Finance Subsidiaries
March 31, 2016 and 2017
2016 2017 2016 2017
Assets Liabilities and Equity
< Non-financial Services Businesses > < Non-financial Services Businesses >
Current assets: ¥ 4,382,596 ¥ 4,632,413 Current liabilities: ¥ 2,842,994 ¥ 2,831,878
Cash and cash equivalents 1,666,899 2,002,502 Trade payables 1,138,349 1,190,106
Trade receivables 835,291 766,453 Financing liabilities 313,515 349,130
Inventories 1,294,608 1,341,104 Other current liabilities 1,391,130 1,292,642
Other current assets 585,798 522,354
Non-current liabilities: 1,325,514 1,095,366
Non-current assets: 5,570,825 5,529,523
Financing liabilities 181,830 128,508
Investments accounted for using
the equity method 593,002 597,262 Retirement benefit liabilities 653,575 487,080
Property, plant and equipment 3,131,624 3,193,486 Other non-current liabilities 490,109 479,778
Intangible assets 814,522 766,959 Total liabilities 4,168,508 3,927,244
Other non-current assets 1,031,677 971,816
Total assets 9,953,421 10,161,936 < Finance Subsidiaries >
Financing liabilities, current 2,769,802 2,590,843
< Finance Subsidiaries > Financing liabilities, non-current 3,556,228 3,893,743
Cash and cash equivalents 90,557 103,474 Other liabilities 1,217,764 1,338,816
Receivables from financial services, Total liabilities 7,543,794 7,823,402
current 1,927,378 1,880,103
Receivables from financial services,
3,070,676 Reconciling items (514,796) (362,149)
non-current 3,083,478
Equipment on operating leases 3,678,111 4,104,663 Total liabilities 11,197,506 11,388,497
Other assets 292,350 278,128
Total assets 9,071,874 9,437,044 Equity attributable to owners of the parent 6,761,433 7,295,296
Reconciling items (796,001) (640,857) Total equity 7,031,788 7,569,626
Total assets ¥18,229,294 ¥18,958,123 Total liabilities and equity ¥18,229,294 ¥18,958,123
1 The Power of
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Information
Unaudited Consolidated Statements of Cash Flows

Divided into Non-financial Services Businesses and Finance Subsidiaries
Fiscal years ended March 31, 2016 and 2017
Yen (millions)
2016 2017
Non-financial Non-financial
Services Finance Reconciling Services Finance Reconciling
Businesses Subsidiaries Items Consolidated Businesses Subsidiaries Items Consolidated
Cash flows from operating activities:
Profit before income taxes ¥ 419,309 ¥ 216,141 ¥ — ¥ 635,450 ¥ 828,955 ¥ 178,031 ¥ — ¥ 1,006,986
Depreciation, amortization and impairment losses excluding equipment
on operating leases 657,856 2,858 — 660,714 671,470 2,859 — 674,329
Share of profit of investments accounted for using the equity method (126,001) — — (126,001) (164,793) — — (164,793)
Decrease (increase) in trade receivables (83,670) (3,601) (902) (88,173) 52,030 (12,291) 9,478 49,217
Decrease (increase) in inventories 73,943 (7,538) — 66,405 (68,699) (3,445) — (72,144)
Increase (decrease) in trade payables 103,276 4,608 (2,695) 105,189 11,468 (393) 1,924 12,999
Decrease (increase) in receivables from financial services — 354,147 206 354,353 — 40,646 (121) 40,525
Decrease (increase) in equipment on operating leases — (558,826) — (558,826) — (435,503) — (435,503)
Dividends received 105,475 2 — 105,477 121,768 2 — 121,770
Other, net 280,338 (47,443) 3,512 236,407 (372,859) 37,245 (12,699) (348,313)
Net cash provided by (used in) operating activities 1,430,526 (39,652) 121 1,390,995 1,079,340 (192,849) (1,418) 885,073
Cash flows from investing activities:
Payments for additions to property, plant and equipment (634,457) (719) — (635,176) (493,710) (422) — (494,132)
Payments for additions to and internally developed intangible assets (232,393) (4,390) — (236,783) (139,933) (3,387) — (143,320)
Decrease (increase) in other financial assets* 135,263 (1,918) (161,692) (28,347) 91,622 (5,752) (130,572) (44,702)
Other, net 22,499 2,730 — 25,229 30,610 926 — 31,536
Net cash provided by (used in) investing activities (709,088) (4,297) (161,692) (875,077) (511,411) (8,635) (130,572) (650,618)
Cash flows from financing activities:
Proceeds from (repayment of) short-term financing liabilities* (64,922) (488,127) 146,960 (406,089) 25,148 (63,243) 116,330 78,235
Proceeds from long-term financing liabilities* 120,484 1,706,507 — 1,826,991 42,182 1,860,266 — 1,902,448
Repayments of long-term financing liabilities* (113,463) (1,168,438) 14,611 (1,267,290) (55,892) (1,582,371) 15,660 (1,622,603)
Dividends paid to owners of the parent (158,601) — — (158,601) (162,205) — — (162,205)
Other, net (90,310) — — (90,310) (80,452) — — (80,452)
Net cash provided by (used in) financing activities (306,812) 49,942 161,571 (95,299) (231,219) 214,652 131,990 115,423
Effect of exchange rate changes on cash and cash equivalents (126,261) (8,632) — (134,893) (1,107) (251) — (1,358)
Net change in cash and cash equivalents 288,365 (2,639) — 285,726 335,603 12,917 — 348,520
Cash and cash equivalents at beginning of period 1,378,534 93,196 — 1,471,730 1,666,899 90,557 — 1,757,456
Cash and cash equivalents at end of period ¥1,666,899 ¥ 90,557 ¥ — ¥ 1,757,456 ¥2,002,502 ¥ 103,474 ¥ — ¥ 2,105,976
Note: Non-financial services businesses provide loans to finance subsidiaries. These cash flows are included in the decrease (increase) in other financial assets, proceeds from (repayment of) short-term financing liabilities,
proceeds from and repayment of long-term financing liabilities (marked by *). The amount of the loans to finance subsidiaries is a ¥161,692 million decrease for the fiscal year ended March 31, 2016, and a ¥130,572
million decrease for the fiscal year ended March 31, 2017, respectively.
1 The Power of
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Information
Financial Summary
U.S. GAAP IFRS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2014 2015 2016 2017
Sales, income and dividends Sales, income and dividends
Net sales and other operating revenue ¥11,087,140 ¥12,002,834 ¥10,011,241 ¥ 8,579,174 ¥ 8,936,867 ¥ 7,948,095 ¥ 9,877,947 ¥11,842,451 ¥12,646,747 Sales revenue ¥12,506,091 ¥13,328,099 ¥14,601,151 ¥13,999,200
Operating income 851,879 953,109 189,643 363,775 569,775 231,364 544,810 750,281 606,878 Operating profit 823,864 670,603 503,376 840,711
Operating margin 7.7% 7.9% 1.9% 4.2% 6.4% 2.9% 5.5% 6.3% 4.8% Operating margin 6.6% 5.0% 3.4% 6.0%
Income before income taxes and Share of profit of investments
equity in income of affiliates 792,868 895,841 161,734 336,198 630,548 257,403 488,891 728,940 644,809 accounted for using the equity method 130,916 96,097 126,001 164,793
Income taxes 283,846 387,436 109,835 146,869 206,827 135,735 178,976 252,662 235,204 Profit before income taxes 933,903 806,237 635,450 1,006,986
Equity in income of affiliates 103,417 118,942 99,034 93,282 139,756 100,406 82,723 132,471 126,570 Income tax expense 267,992 245,139 229,092 327,592
Net income attributable to
noncontrolling interests (20,117) (27,308) (13,928) (14,211) (29,389) (10,592) (25,489) (34,642) (43,168) Profit for the year 665,911 561,098 406,358 679,394
Net income attributable to Profit for the year attributable to
Honda Motor Co., Ltd. 592,322 600,039 137,005 268,400 534,088 211,482 367,149 574,107 493,007 owners of the parent 624,703 509,435 344,531 616,569
Cash dividends paid during Dividends paid to owners of
the period 140,482 152,590 139,724 61,696 92,170 108,138 129,765 142,381 158,601 the parent 142,381 158,601 158,601 162,205
Research and development 551,847 587,959 563,197 463,354 487,591 519,818 560,270 634,130 662,610 R&D expenditures 625,698 670,331 719,810 659,918
Interest expense 12,912 16,623 22,543 12,552 8,474 10,378 12,157 12,703 16,598 Interest expense 12,803 18,194 18,146 12,471
Assets, long-term debt and

shareholders’ equity Assets, liabilities and equity
Total assets ¥12,036,500 ¥12,615,543 ¥11,818,917 ¥11,629,115 ¥11,577,714 ¥11,787,599 ¥13,635,357 ¥15,622,031 ¥18,088,839 Total assets ¥16,048,438 ¥18,425,837 ¥18,229,294 ¥18,958,123
Financing liabilities
Long-term debt 1,905,743 1,836,652 1,932,637 2,313,035 2,043,240 2,235,001 2,710,845 3,234,066 3,933,860 (Non-current liabilities) 3,224,512 3,926,276 3,736,628 4,022,190
Total Honda Motor Co., Ltd. Equity attributable to owners of
shareholders’ equity 4,488,825 4,550,479 4,007,288 4,328,640 4,439,587 4,398,249 5,043,500 5,918,979 6,696,693 the parent 6,335,534 7,108,627 6,761,433 7,295,296
Capital expenditures
(excluding purchase of operating Additions to property,
lease assets) 627,066 654,030 633,913 348,981 326,620 424,413 630,408 782,027 714,502 plant and equipment 803,231 703,920 687,306 588,360
Depreciation
(excluding property on
operating leases) 361,747 417,393 441,868 401,743 377,272 345,105 335,536 442,318 490,375 Depreciation 419,022 451,052 486,410 484,133
1 The Power of
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Information
Financial Summary (continued)

Yen Yen
U.S. GAAP IFRS
2007 2008 2009 2010 2011 2012 2013 2014 2015 2014 2015 2016 2017
Per common share Per share
Net income attributable to Honda Profit for the year attributable to
Motor Co., Ltd.: owners of the parent
Basic ¥ 324.62 ¥ 330.54 ¥ 75.50 ¥ 147.91 ¥ 295.67 ¥ 117.34 ¥ 203.71 ¥ 318.54 ¥ 273.54 Basic ¥ 346.62 ¥ 282.66 ¥ 191.16 ¥ 342.10
Diluted 324.62 330.54 75.50 147.91 295.67 117.34 203.71 318.54 273.54 Diluted 346.62 282.66 191.16 342.10
Dividends 67 86 63 38 54 60 76 82 88 Dividends 82 88 88 92
Honda Motor Co., Ltd. Equity attributable to owners of
shareholders’ equity 2,463.69 2,507.79 2,208.35 2,385.45 2,463.29 2,440.35 2,798.37 3,284.14 3,715.66 the parent 3,515.27 3,944.23 3,751.59 4,047.81
Sales Sales
Sales amounts:*1 Sales revenue:*1
Japan ¥ 1,681,190 ¥ 1,585,777 ¥ 1,446,541 ¥ 1,577,318 ¥ 1,503,842 ¥ 1,517,927 ¥ 1,652,995 ¥ 1,912,504 ¥ 1,810,283 Japan ¥ 1,920,114 ¥ 1,800,439 ¥1,754,167 ¥ 1,799,772
15% 13% 14% 18% 17% 19% 17% 16% 14% 15% 14% 12% 13%
Overseas 9,405,950 10,417,057 8,564,700 7,001,856 7,433,025 6,430,168 8,224,952 9,929,947 10,836,464 Overseas 10,585,977 11,527,660 12,846,984 12,199,428
85% 87% 86% 82% 83% 81% 83% 84% 86% 85% 86% 88% 87%
Total ¥11,087,140 ¥12,002,834 ¥10,011,241 ¥ 8,579,174 ¥ 8,936,867 ¥ 7,948,095 ¥ 9,877,947 ¥11,842,451 ¥12,646,747 Total ¥12,506,091 ¥13,328,099 ¥14,601,151 ¥13,999,200
100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100% 100%
Thousands Thousands
Unit sales:*2 Unit sales:*2
Motorcycles 10,369 9,320 10,114 9,639 18,331 15,061 15,494 17,021 17,765 Motorcycles 17,008 17,592 17,055 17,661
Automobiles 3,652 3,925 3,517 3,392 3,529 3,108 4,014 4,323 4,364 Automobiles 4,340 4,367 4,743 5,028
Power Products 6,421 6,057 5,187 4,744 5,509 5,819 6,071 6,036 6,001 Power Products 6,018 5,983 5,965 6,121
Number of employees 167,231 178,960 181,876 176,815 179,060 187,094 190,338 198,561 203,902 Number of employees 199,368 204,730 208,399 211,915
Exchange rate Exchange rate

(yen amounts per U.S. dollar) (yen amounts per U.S. dollar)
Rates for the period-end ¥ 118 ¥ 100 ¥ 98 ¥ 93 ¥ 83 ¥ 82 ¥ 94 ¥ 103 ¥ 120 Rates for the period-end ¥ 103 ¥ 120 ¥ 113 ¥ 112
Average rates for the period 117 114 101 93 86 79 83 100 110 Average rates for the period 100 110 120 108
*1 The geographic breakdown of sales amounts is based on the location of customers.
*2 Honda changed its counting method for unit sales as follows;
· 2007–2010: the total of unit sales of completed products of Honda and its consolidated subsidiaries, and sales of parts for local production at Honda’s affiliates accounted for using the equity method
· 2011–2017: the total of unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for using the equity method (Honda Group Unit Sales)
1 The Power of
5 Review of
Information
Investor Relations Information

(As of March 31, 2017)
Honda Motor Co., Ltd.

Company Information IR Offices
Established September 24, 1948 Japan
Lines of Business Motorcycles, Automobiles, Power Product and Other Businesses, Financial Services Honda Motor Co., Ltd.
1-1, 2-chome, Minami-Aoyama, Minato-ku,
Fiscal Year-End March 31
Tokyo 107-8556, Japan
Independent Registered KPMG AZSA LLC TEL: 81-(0)3-3423-1111 (Switchboard)
Public Accounting Firm
Web Site Corporate Web Site: http://world.honda.com/ U.S.A.
IR Web Site Japanese: http://www.honda.co.jp/investors/ Honda North America, Inc.
IR Web Site English: http://world.honda.com/investors/ New York Office
156 West 56th Street, 20th Floor
New York, NY 10019, U.S.A.
TEL: 1-212-707-9920
Corporate Web Site IR Web Site

http://world.honda.com/ http://world.honda.com/investors/
Stock Information Shareholders’ Register Manager Depositary and Transfer Agent for
Securities Code 7267
for Common Stock American Depositary Receipts
Number of Shares 7,086,000,000 shares Shareholders’ Register Manager: JPMorgan Chase Bank, N.A.
Authorized Sumitomo Mitsui Trust Bank, Limited 4 New York Plaza, Floor 12,
Total Number of 1,811,428,430 shares 4-1, Marunouchi 1-chome, Chiyoda-ku, Tokyo New York, NY 10004, U.S.A.
Shares Issued
Contact Address: Contact Address:
Number of 194,661 Sumitomo Mitsui Trust Bank, Limited, JPMorgan Service Center
Shareholders
Stock Transfer Agency Department P.O. Box 64504
Number of Shares 100 shares 8-4, Izumi 2-chome, Suginami-ku, St. Paul, MN 55164-0504, U.S.A.
per Trading Unit
Tokyo 168-0063, Japan TEL: 1-800-990-1135
Stock Exchange Japan: Tokyo stock exchanges
Listings TEL: 0120-782-031 (toll free within Japan) E-mail: jpmorgan.adr@wellsfargo.com
Overseas: New York stock exchanges
Ratio: 1 ADR = 1 share of underlying stock
General Meeting June
of Shareholders Ticker symbol: HMC
Record Dates June 30 September 30 Note: With respect to taxation and other matters relating to the acquisition,
for Dividends December 31 March 31 holding, and disposition of the Company’s common stock or ADRs by
non-residents of Japan, please also refer to “Item 10E. Taxation” of
Form 20-F included in the “Investor Relations” section on our web site.
1 The Power of
5 Review of
Information
Investor Relations Information

(As of March 31, 2017)
Major Shareholders Breakdown of Shares by Shareholder Type
Number of
shares held
Percentage of total
shares issued
Individuals 8.8%
Name (thousands) (%)
Treasury stock 0.5%
Japan Trustee Services Bank, Ltd. (Trust Account) 127,979 7.07
The Master Trust Bank of Japan, Ltd. (Trust Account) 94,498 5.22 Foreign investors 40.1 % Financial institutions 41.1%
Moxley & Co. LLC 66,809 3.69
Meiji Yasuda Life Insurance Company 51,199 2.83
State Street Bank and Trust Company 45,879 2.53 Securities companies 1.7%
Japan Trustee Services Bank, Ltd. (Trust Account 09) 39,950 2.21
State Street Bank and Trust Company 505223 39,480 2.18 Other domestic
Tokio Marine & Nichido Fire Insurance Co., Ltd. 37,234 2.06
corporations 7.8%
The Bank of Tokyo-Mitsubishi UFJ, Ltd. 36,686 2.03
Japan Trustee Services Bank, Ltd. (Trust Account 05) 33,061 1.83
Honda’s Stock Price and Trading Volume on the Tokyo Stock Exchange
(Yen) Stock (millions)
5,000
← High Trading
← Low Volume
4,000
3,000
2,000 400
300
1,000 200
100
0 0
2011 2012 2013 2014 2015 2016 2017

Annual Report 2017: Honda Motor Co., LTD

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Annual Report 2017: Honda Motor Co., LTD

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Annual Report 2017

Year Ended March 31, 2017

Honda Motor Co., Ltd.

On the Cover: CR-V (North America)

User Guide Icons

Click on these links to move to different sections of the report.

13 Motorcycle 22 Environment/Social Activity/Safety

7 Financial Section page 29

Caution with Respect to Forward-Looking Statements

Financial Highlights Years ended March 31

13,999.2 billion yen 840.7

164.7 billion yen

Profit for the Year Attributable to Owners of the Parent /

600 300 15,000 4,500 600

400 200 10,000 3,000 400

200 100 5,000 1,500 200

616.5 billion yen

into one of our global models. Moreover, sales of the all-new

Mutually complementary system for our global operations

Concerning the advancement of our six-region global opera-

Shareholders Since I became president, we have set and pursued two

As a part of our effort to address environmental issues, we are

the driver from the need to monitor his or her surroundings

Growth through the pursuit of quality Corporate Attitude

Business Strengthening our business

June 15, 2017

Alphabet Inc., the umbrella parent company of Google. In January

CFO Interview 2017, we made a joint announcement with GM concerning the

Q: Please tell us about the mid-term initiatives.

Capital Expenditures/Depreciation R&D Expenditure/ Dividend per Share

Sales Revenue (millions)

Segment Profit (Loss)

Percentage of Sales Revenue by Business Percentage of Sales Revenue by Region

Financial Services Motorcycle Business 6.1% Japan

13.4% 12.3% Asia 12.9%

(Fiscal years ended March 31)

Sales Revenue 2016 2017 % change

Review of Operations Operating Profit / Operating Margin

Motorcycle Business 200

Japan North America Europe

Pioneer 1000 (North America) CRF 1000L Africa Twin (Europe)

Asia Other Regions

Activa (India) Vision (Vietnam)

(Fiscal years ended March 31)

Sales Revenue 2016 2017 % change

Review of Operations Operating Profit / Operating Margin

Automobile Business 600

Japan North America Europe

Freed (Japan) Civic Hatchback (North America)

Asia Other Regions

BR-V (Asia) Civic (China)

(Fiscal years ended March 31)

Japan North Europe Asia Other

Sales Revenue 2016 2017 % change

Review of Operations Operating Profit (Loss) / Operating Margin

Power Product and Other Businesses 40

Japan Europe Other Regions

BF5 (Four-stroke outboard engine) EU2000i (Generator)

(Fiscal years ended March 31)

Review of Operations Operating Profit / Operating Margin

Financial Services Business 200

Basic Approach Corporate Governance Structure (as of June 15, 2017)