Honda Motor : Consolidated Financial Summary for the Fiscal 3rd Quarter Ended December 31, 2021

February 9, 2022

Consolidated Financial Summary for the Fiscal Nine Months Ended December 31, 2021 and Forecasts for the Fiscal Year Ending March 31, 2022

• Despite some unfavorable factors such as a decrease in automobile unit sales due to the supply shortage of certain parts including semiconductors and an increase in raw material cost, consolidated operating profit for the fiscal nine months amounted to 671.6 billion yen, a year-on- year increase by 224.6 billion yen, due primarily to cost reductions, control of incentives and favorable currency effects.
• Consolidated profit for the fiscal nine months attributable to owners of the parent amounted to 582.1 billion yen, a year-on-year increase by 138.0 billion yen.
• The previously announced forecast for consolidated operating profit for the current fiscal year (April 1, 2021 through March 31, 2022) was revised upward by 140 billion yen to 800 billion yen.
• The previously announced forecast for profit for the fiscal year attributable to owners of the parent was revised upward by 115 billion yen to 670 billion yen, a year-on-yearincrease.

1. Consolidated financial summary and business-by-business results for the fiscal nine months ended December 31, 2021

 Sales revenue: 10,677.0 billion yen (a year-on-yearincrease of 11.8%) Increase due to higher sales revenue from all businesses.

1. • Operating profit: 671.6 billion yen (a year-on-yearincrease of 50.3%)

   Increase due primarily to favorable currency effects and higher profit related to changes in sales revenue and model mix.

   • Profit for the period attributable to owners of the parent: 582.1 billion yen (a year-on-yearincrease of 31.1%)
2. Motorcycle business
3. • Sales revenue: 1,602.0 billion yen (a year-on-yearincrease of 343.9 billion yen) Increase due primarily to a sales increase in Brazil.
   • Operating profit: 232.3 billion yen (a year-on-year increase of 80.0 billion yen).
     Increase due primarily to an increase in profit related to changes in sales revenue and model mix.
4. Automobile business

Sales revenue: 6,823.6 billion yen (a year-on-year increase of 462.7 billion yen) Although sales decreased in North America, sales revenue experienced a year-on-year increase due primarily to an increase in sales in Asia and favorable currency effects.

Operating profit: 188.5 billion yen (a year-on-year increase of 135.9 billion yen) Increase was due primarily to the control of selling, general and administrative (SG&A) expenses.

Combined with operating profit from financial services business related to automobile sales, the estimated operating profit for automobile business is 437.2 billion yen.

1. Financial Services business

Operating profit: 258.1 billion yen (a year-on-year increase of 7.5 billion yen) Increase due primarily to an increase in profit due to higher revenue.

1. Life Creation (power products) and Other businesses

Operating loss: 7.4 billion yen (a year-on-year improvement of 1.1 billion yen) Aircraft/aircraft engine business, which is included in "Other businesses," accounted for an operating loss of 23.6 billion yen.

1. Forecasts for the Fiscal Year Ending March 31, 2022(FY22)
2. • Honda is expecting that the external business environment will remain challenging due primarily to the resurgence of COVID-19, the supply shortage of certain parts including semiconductors and a further increase in raw material cost. Despite this assumption, Honda made an upward revision to the previously announced forecast for consolidated operating profit for FY22 to 800 billion yen, an increase by 140 billion yen, reflecting its continuous efforts to improve profitability including the control of selling, general and administrative (SG&A) expenses and incentives.
   • The previously announced forecast for profit for the fiscal year attributable to owners of the parent was revised upward by 115 billion yen to 670 billion yen.

Consolidated Financial Results for the Fiscal Nine Months

		Fiscal nine months	Fiscal nine months
		ended	ended	Difference
		Dec. 31, 2020	Dec. 31, 2021
		(9 months period)	(9 months period)
Honda Group	Motorcycles	10.591	12.775	+2.184
Unit Sales*1	Automobiles*3	3.425	3.000	-0.425
(million units)	Life Creation	3.855	4.500	+0.645
Consolidated	Motorcycles	7.263	7.964	+0.701
Unit Sales*2	Automobiles*3	1.899	1.792	-0.107
(million units)	Life Creation	3.855	4.500	+0.645
	Sales revenue	9,546.7	10,677.0	+1,130.3
	Operating profit	447.0	671.6	+224.6
Financial	Share of profit of investments accounted for	204.5	157.0	-47.5
using the equity method
Results
Profit before income taxes	658.7	845.2	+186.5
(billion yen)
	Profit for the period	444.1	582.1	+138.0
	attributable to owners of the
	parent
Honda's		106	111	JPY depreciated
Average	USD=	against the USD
Rate (yen)				by 5 yen/dollar

Forecasts for the Fiscal Year Ending March 31, 2022 (FY22)

			Previous	Revised	Difference	Difference
		FY21	FY22	FY22	compared
		compared to
		results	forecasts	forecasts	to previous
		FY21 results
			（2021/11/5）	(2022/2/9)	forecasts
Honda Group	Motorcycles	15.132	17.500	17.040	+1.908	-0.460
	4.546	4.200	4.200	-0.346	―
Unit Sales*1	Automobiles*3
(million units)
Life Creation	5.623	6.100	5.950	+0.327	-0.150
Consolidated	Motorcycles	10.264	11.040	10.695	+0.431	-0.345
	2.617	2.525	2.465	-0.152	-0.060
Unit Sales*2	Automobiles*3
(million units)
Life Creation	5.623	6.100	5.950	+0.327	-0.150
	Sales revenue	13,170.5	14,600.0	14,550.0	+1,379.4	-50.0
	Operating profit	660.2	660.0	800.0	+139.7	+140.0
Financial
Share of profit of investments	272.7	200.0	210.0	-62.7	+10.0
Results/	accounted for using the equity method
Forecasts	Profit before income taxes	914.0	860.0	1,020.0	+105.9	+160.0
(billion yen)
	Profit for the year
	attributable to owners of the	657.4	555.0	670.0	+12.5	+115.0
	parent
Annual dividend per share (yen)	110	110	110	--	--
					JPY to	JPY to
Honda's		106	110		depreciate	depreciate
Average	USD=	111	against the	against the
Rate (yen)					USD by 5	USD by 1
					yen/dollar	yen/dollar

Consolidated Financial Results for the Fiscal 3rd Quarter

		3rd quarter	3rd quarter
		ended	ended	Difference
		Dec. 31, 2020	Dec. 31, 2021
		(3 months period)	(3 months period)
Honda Group	Motorcycles	4.269	4.602	+0.333
Unit Sales*1	Automobiles*3	1.380	1.085	-0.295
(million units)	Life Creation	1.402	1.270	-0.132
Consolidated	Motorcycles	3.019	2.877	-0.142
Unit Sales*2	Automobiles*3	0.809	0.610	-0.199
(million units)	Life Creation	1.402	1.270	-0.132
	Sales revenue	3,771.5	3,688.7	-82.7
	Operating profit	277.7	229.4	-48.2
Financial	Share of profit of investments accounted for	102.2	49.7	-52.4
using the equity method
Results
Profit before income taxes	386.4	284.8	-101.5
(billion yen)
	Profit for the period	284.0	192.9	-91.0
	attributable to owners of the
	parent
Honda's				JPY depreciated
Average	USD=	104	114	against the USD
Rate (yen)				by 10 yen/dollar

*1 Honda Group Unit Sales is the total unit sales of completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method.

*2 Consolidated Unit Sales is the total unit sales of completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) corresponding to consolidated sales revenue, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.

*3 Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries and provided through our consolidated subsidiaries are accounted for as operating leases in conformity with IFRS and are not included in consolidated sales revenue to the external customers in our automobile business. Accordingly, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile business.

For more details, please check the Investor Relations section of Honda website: https://www.honda.co.jp/investors/library/financialresult.html(Japanese) https://global.honda/investors/library/financialresult.html(English)