Consolidated Financial Summary:

Results for Fiscal 4th Quarter (3 month period from January 1, 2009 through March 31, 2009)

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

Consolidated operating losses amounted to JPY 283.0 billion, a decrease of JPY 451.8 billion compared to the same period a year ago, due to decreased profit from lower revenue, costs related to production adjustments, increased raw material costs, the negative impact of exchange rates, one-time costs related to withdrawal from some racing activities and cancellation of new model development projects, despite the positive effect of cost reduction efforts and decreased selling, general and administrative (SG&A) and R&D expenses.

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

Exchange rate: Honda's average rates for this fiscal 4th quarter: JPY 94=USD1 / JPY 121=Euro1

Honda's average rates for the previous fiscal 4th quarter: JPY106=USD1 / JPY157=Euro1

Results for Fiscal Year ended March 31, 2009 (12 month period from April 1, 2008 through Mach 31, 2009)

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

Consolidated operating income amounted to JPY 189.6 billion, a decrease of 80.1% compared to the same period a year ago, due to decreased profit from lower revenue, costs related to production adjustments, increased raw material costs, the negative impact of exchange rates and one-time costs related to withdrawal from some racing activities and cancellation of new model development projects, despite the positive effect of cost reduction efforts, and decreased SG&A and R&D expenses.  

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

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

Honda's average rates for the fiscal year ended March 31, 2008: JPY114=USD1 / JPY162=Euro1

Honda plans for a year-end cash dividend of JPY 8 per share. Combined with the fiscal first quarter dividend of JPY 22, the fiscal second quarter dividend of JPY 22 and the fiscal third quarter dividend of JPY 11, the total cash dividend to be paid for the entire fiscal year is expected to be JPY 63 per share, which is a1 decrease of JPY 23 compared to the previous fiscal year. The amount of year-end dividend will be a matter to be resolved at the shareholders' meeting.

Consolidated unit sales

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

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

Forecast for the Fiscal Year Ending March 31, 2010

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

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

Consolidated Unit Sales Forecast　　

Unit sales of approximately 5.38 million units of Honda-brand motorcycle products are not included in this total, in conformity with U.S. generally accepted accounting principles, because they are manufactured and sold by overseas affiliates accounted for under the equity method, but do not use any parts supplied by Honda and its consolidated subsidiaries.

Honda plans for each quarter cash dividend of JPY 8 per share for the fiscal year ending March 31, 2010 and the total cash dividend to be paid for the entire fiscal year is expected to be JPY 32 per share, which is a decrease of JPY 31 compared to the previous fiscal year.