Honda Motor Co., Ltd. · TSE:7267
Honda Motor — FY2025 Earnings Presentation
31 slides from Honda Motor's earnings presentation, May 13, 2025
Slide 1: Fiscal Year Ended March 31, 2025 Financial Results
Fiscal Year Ended March 31, 2025 Financial Results May 13, 2025 1 1
Slide 2: Summary
Summary Financial Results for FYE March 31, 2025 Operating Profit 1,213.4 bil. yen (excl. the impact of the change in the estimation model for automobile product warranties: 1,341.0 bil. yen） Motorcycles: Achieved record-high sales volume, operating profit, and operating margin. Automobiles: Despite
Slide 3: Stable Revenue from Motorcycle and Automobile Business
Stable Revenue from Motorcycle and Automobile Business Motorcycle Business Automobile Business (HEV) Previous System e:HEV 2020～（Current System） System cost reduced by 25% Shared across many Compact Supplier Collaboration Activities models globally, spanning FIT 1 Motor HEV Evolution Cross-Model Sta
Slide 4: Towards Increasing Corporate Value
Towards Increasing Corporate Value Past Present Future Optimization of Capital Establishment and Continuation of Enhancement of Resolution of Issue through Proactive Earnings Base Electrification Strategy Shareholder Returns Acquisition of the Changes in EV Market Growth Slowdown / Intensified Compe
Slide 5: Fiscal Year Ended March 31, 2025 Financial Results
Fiscal Year Ended March 31, 2025 Financial Results
Slide 6: FYE March 31, 2025: Honda Unit Sales
FYE March 31, 2025: Honda Unit Sales Unit (thousand) Motorcycles Automobiles Power Products Honda FYE FYE FYE FYE FYE FYE Group Change Change Change Mar. 31, 2024 Mar. 31, 2025 Mar. 31, 2024 Mar. 31, 2025 Mar. 31, 2024 Mar. 31, 2025 Unit Sales Japan 241 224 - 17 595 630 + 35 302 278 - 24 North Ameri
Slide 7: FYE March 31, 2025: Consolidated Financial Results
FYE March 31, 2025: Consolidated Financial Results （Ref.）Excluding effects of the change in the estimation FYE March 31 model for automobile product warranties*1 Yen (billion) 2024 2025 Amount Change 2025 Amount Change Sales revenue 20,428.8 21,688.7 + 1,259.9 + 6.2% 21,688.7 + 1,259.9 + 6.2% Operat
Slide 8: FYE March 31, 2025: Change in Operating Profit
FYE March 31, 2025: Change in Operating Profit Yen (billion) Operating Profit - 168.4 ( - 12.2 ％ ) Excluding impact of the change in the estimation model for automobile product warranties - 40.8 ( - 3.0 ％ ) + 525.0 - 85.0 - 153.5 1,381.9 - 233.6 Expenses*3 - 93.6 1,341.0 - 127.6 R&D Currency 1,213.4
Slide 9: Sales Revenue/Operating Profit (Margin) by Business Segment (Twelve Months)
FYE March 31, 2025: Sales Revenue/Operating Profit (Margin) by Business Segment (Twelve Months) upper: FYE March 31, 2025 Motorcycle Automobile Financial Services Power Products and lower: FYE March 31, 2024 Business Business Business Other Businesses Unit (thousand) 20,572 3,716 - 3,700 Honda Group
Slide 10: Change in Operating Profit for Motorcycle Business
FYE March 31, 2025: Change in Operating Profit for Motorcycle Business Despite Currency effects and other factors, the increase in operating profit was mainly due to Price/Cost impacts and Sales impacts. Yen (billion) Operating Profit + 107.2 ( + 19.3 ％) + 175.3 - 20.1 - 21.5 - 74.6 Expenses*3 R&D 6
Slide 11: Change in Operating Profit for Automobile Business
FYE March 31, 2025: Change in Operating Profit for Automobile Business Although higher profits from Price/Cost impacts offset higher Expenses and R&D, lower sales volume and higher incentives resulted in lower profits. Yen (billion) Operating Profit - 316.7 ( - 56.5 ％ ) Excluding impact of the chang
Slide 12: Cash Flows of Non-Financial Services Businesses
Cash Flows of Non-Financial Services Businesses Yen (billion) FYE March 31, 2024 FYE March 31, 2025 Cash flows from operating activities + 2,288.1 + 1,883.1 Cash flows from investing activities - 827.1 - 1,217.2 Free cash flow + 1,460.9 + 665.8 Cash flows from financing activities - 712.5 - 1,390.3
Slide 13: Fiscal Year Ending March 31, 2026 Financial Forecast
Fiscal Year Ending March 31, 2026 Financial Forecast
Slide 14: Forecast for FYE March 31, 2026: Honda Unit Sales
Forecast for FYE March 31, 2026: Honda Unit Sales Unit (thousand) Motorcycles Automobiles Power Products Honda FYE FYE FYE FYE FYE FYE Group March 31, 2025 March 31, 2026 Change March 31, 2025 March 31, 2026 Change March 31, 2025 March 31, 2026 Change Unit Sales Results Forecast Results Forecast Res
Slide 15: Consolidated Financial Forecast for FYE March 31, 2026
Consolidated Financial Forecast for FYE March 31, 2026 FYE March 31, 2025 FYE March 31, 2026 Amount Change Yen (billion) Results Forecast Sales revenue 21,688.7 20,300.0 - 1,388.7 - 6.4% Operating profit 1,213.4 500.0 - 713.4 - 58.8% Operating margin 5.6% 2.5% - 3.1 pt Share of profit (loss) of inve
Slide 16: Forecast for FYE March 31, 2026: Change in Operating Profit
Forecast for FYE March 31, 2026: Change in Operating Profit Yen (billion） Operating Profit - 713.4 ( - 58.8 ％ ) + 250.0 - 219.1 Completed - 300.0 + 156.1 - 126.0 automobile vehicles + 127.6 1,341.0 Price/Cost Expenses*3 1,402.0 - 452.0 Automobile parts - 220.0 and raw materials 1,213.4 Sales impacts
Slide 17: Forecast for 2026: Capital Expenditures/Depreciation/R&D
Forecast for FYE March 31, 2026: Capital Expenditures/Depreciation/R&D FYE March 31, 2025 FYE March 31, 2026 Change Yen (billion) Results Forecast Capital expenditures*1 537.4 620.0 + 82.5 Depreciation and amortization*1 456.1 388.0 - 68.1 Research and development expenditures*2 1,210.6 1,190.0 - 20
Slide 18: Shareholder Returns
Shareholder Returns <Change of the Dividend Policy> DOE (dividend on equity attributable to owners of the parent after adjustment)*1 will be introduced as a return indicator from FYE March 31, 2026 onward. Aim to pay a dividend with a target of 3.0% to provide a more stable and continuous return
Slide 19: Caution with Respect to Forward-Looking Statements
Caution with Respect to Forward-Looking Statements: This presentation contains forward-looking statements about the performance and shareholders return of Honda, which are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be ad
Slide 20: HONDA | How we move you.
HONDA | Howwe move you. The Power of Dreams CREATE » TRANSCEND, AUGMENT
Slide 21: Appendix
HONDA Appendix
Slide 22: Summary of Tariff Impact Estimation Assumptions
Forecast for FYE March 31, 2026 Summary of Tariff Impact Estimation Assumptions Reflect all currently estimated amounts of the impact from announced additional tariffs. Continue to scrutinize the impact amounts as we move towards Fiscal First Quarter Ended June 30, 2025. Yen (billion） Estimation Ass
Slide 23: Three Months Ended March 31, 2025: Change in Operating Profit
Three Months Ended March 31, 2025: Change in Operating Profit Yen (billion） Operating Profit - 232.0 ( - 75.9 ％ ) Excluding impact of the change in the estimation model for automobile product warranties - 104.4 ( - 34.2 ％ ) + 148.9 - 30.6 305.5 - 129.3 - 55.9 Expenses*3 - 37.3 R&D 201.1 - 127.6 Curr
Slide 24: Sales Revenue/Operating Profit (Margin) by Business Segment
Three Months Ended March 31, 2025: Sales Revenue/Operating Profit (Margin) by Business Segment upper: FYE March 31, 2025 Motorcycle Automobile Financial Services Power Products and lower: FYE March 31, 2024 Business Business Business Other Businesses Unit (thousand) 5,064 899 - 1,184 Honda Group Uni
Slide 25: Change in Sales Revenue
Change in Sales Revenue (sales revenue from external customers） Compared with Three Months Ended March 31, 2024: - 69.2 billion yen / - 1.3 % Three Months (Excluding currency translation effects: - 118.6 billion yen / - 2.2 %) Change Sales Revenue Yen (billion) FYE March 31, 2024 FYE March 31, 2025
Slide 26: Sales Revenue/Operating Profit by Geographical Segment
Fiscal Fourth Quarter Ended March 31, 2025: Sales Revenue/Operating Profit by Geographical Segment Yen (billion) Japan North America Europe Asia Other Regions Three Months 2024 2025 2024 2025 2024 2025 2024 2025 2024 2025 Sales Revenue 1,289.1 1,432.4 3,171.7 3,106.4 307.7 280.9 1,307.0 1,268.0 304.
Slide 27: Capital Expenditures/Depreciation/R&D
Fiscal Fourth Quarter Ended March 31, 2025: Capital Expenditures/Depreciation/R&D Three Months Ended March 31 Fiscal Year Ended March 31 2024 2025 2024 2025 Change Change Results Results Results Results Yen (billion) Capital expenditures 167.6 216.5 + 48.9 387.9 537.4 + 149.4 Depreciation and amorti
Slide 28: Consolidated Statements of Financial Position
FYE March 31, 2025: Consolidated Statements of Financial Position Divided into Non-financial Services Businesses and Finance Subsidiaries Yen (billion) FYE March 31, FYE March 31, FYE March 31, FYE March 31, Assets Liabilities and Equity 2024 2025 2024 2025 Cash and cash equivalents 4,624.6 3,861.7
Slide 29: Sales Revenue/Operating Profit by Business Segment
Sales Revenue/Operating Profit by Business Segment Yen(billion) QTD YTD (FYE March 31) FYE March 31, 2024 FYE March 31, 2025 Change Change 2024 2025 Change Segment Information 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (%) Change Results Results (%) Sales Revenue Motorcycle Business 756.9 815.6 785.4 862.1 937.6 873.0
Slide 30: Honda Group Unit Sales/Consolidated Unit Sales
Honda Group Unit Sales/Consolidated Unit Sales Unit (thousand) FYE March 31 FYE March 31 Forecast 2024 2025 Honda Group Change 2024 2025 2024 2025 Unit Saless 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Change Change Results Results Results Forecast Motorcycles 4,473 4,793 4,695 4,858 5,062 5,320 5,126 5,064 + 206 18,8
Slide 31: Automobile Retail Sales per Power Trains
Automobile Retail Sales per Power Trains Unit (thousand) FYE March 31 FYE March 31 Electrified 2024 2025 Automobile Retail Change 2024 2025 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Change Sales Results Results Global HEV 216 205 227 217 204 217 231 246 + 29 865 898 + 33 PHEV 3 8 8 5 4 5 5 3 -2 23 17 -6 EV 4 3 7 6 6