Accord

1 Honda Corporate Update - 2017 AutumnAccord Business Status Other TopicsAutomobile Business OperationsMotorcycle Business Operations Business StrategyHonda Corporate Update 2030 Vision2 Financial Highlights708090100110120130183 203 199 178 177 192 182 171 461 280 153 501 ,0001,2001,4001,6001,800FY20082009201020 112012201320142015201620172018(P)PP & OthersFinanceMotorcycleAutomobileO/P Margin Earthquake Thai flood Earthquake Thai flood2012231569363189953 USD/JPY544 109 forFY18840823670 IFRSUS GAAPP rofit Structure Profile over Past Decade and FY18 Forecast Airbag Inflator Issue Airbag Inflator Issue LehmanCrisis LehmanCrisisYen (billion)745503* Forecast as of November1, 20173* 4FY18 PreviousForecastFY18 RevisedForecastChangeFY18 PreviousForecastFY18 RevisedForecastChangeFY18 PreviousForecastFY18 RevisedForecastChangeJapan170165-5680690 + 10265280+ 15 NorthAmerica315315-1,9201,920-3,0103,010 -Europe220225+ 5175175-1,0301,015-15 Asia17,01517,375+ 3602,0602,100+ 401,4601,455-5 Other Regions1,0501,100+ 50245245-400405+ 5 Total18,77019,180+ 4105,0805,130+ 506,1656,165-17,66118,77019,1805,0285,08 05,1306,1216,165 6,165+ 410( + %) 0( 0 %)+ 50( + %)Forecast: Honda Group Unit SalesMotorcyclesAutomobilesPower ProductsUnit(Thousand)FY17 ResultsFY18 PreviousForecastFY18 RevisedForecastFY17 ResultsFY18 PreviousForecastFY18 RevisedForecastFY17 ResultsFY18 PreviousForecastFY18 RevisedForecast5 Operating profit - ( - % ) + + currency effects and one time issueOperating profit + ( + % )- Forecast.

2 Change in Operating ProfitFY17 ResultsOperating of pensionaccounting treatmentRevenue,model mix, inSG&AIncrease inR&DLitigationsettlementYen (billion)Operating , in the company s shareholders return policy6 Purpose for the change Further improving the Company s capital strategy Points of the change Goal: to maintain a shareholders return ratio of approximately 30%Goal: to realize a return ratio alone of approximately 30%Acquisition of the Company s own shares at a timing that it deems optimalWith respect to the redistribution of profits to its shareholders, the Company s basic policy is to determine such distributions after taking into account, among others, its retained earnings for future growth and consolidated earnings performance based on a long-term perspective. Business Status Other TopicsAutomobile Business OperationsMotorcycle Business Operations Business StrategyHonda Corporate Update 2030 Vision Financial Highlights782030 Vision92030 Vision- Focus on three areas: Mobility, Robotics and Energy- Strive to further expand the joy of people by offering products and services- Strive to become in the areas of the environment and safety10 Utilize our corporate resources effectively and strengthen our business Vision11 Further enhance inter-regional coordination and collaboration andincrease the efficiency of our operations from a global VisionGlobal Models continue to be widely popular representingapprox.

3 70% of CY2016 global Honda unit salesGlobal models: Accord , Civic, CR-V, Vezel/ HR-V and Fit/ Jazz12 Accord - All-new Accord launched in October 2017 in to be followed by other marketsCivic- Underwent full model change in 2015 in and successfully launched in global market- Shares commonized platform between sedan, coupe and hatchbackCR-V- All-new CR-V underwent full model change in 2016 in Hybrid model will be launched initially in ChinaVezel/ HR-V- Grew into strong model and became one of the global models since its launch in 2013 AccordCivicCR-VVezel/ HR-VFit/ Jazz*Derivative models: City/Grace, Greiz and XR-VSharing of down-sized turbocharged engine at some trim levelsFocus onplatform and parts commonalityFocus onplatform and parts commonalityAccord 11%Civic13% CR-V 14% Vezel11%Fit10%Derivative models Other models: Direction of Model Development20132014 2015 2016 CivicCR-VHR-VFitGlobal Operation Reform Concurrent development in all six regions Adoption of locally optimized design Increase commonality of platform and parts (Civic, CR-V and Accord )Further enhance electrification, autonomous driving and connectivity industry effort to realize a carbon-free and collision-free mobile Adopt Lead-Country Introduction Strategy(Clarification of model development leadership in each region and increase model development efficiency.)

4 Discuss introduction of modular strategies Introduce advanced platforms to accommodate electrification of powertrains14 Regional ModelsIntroduction of regional models has also been expanding in each : Brand differentiationbetween two Joint VenturesNorth America: Light Truck modelsJapan: Mini-vehiclesAsia: Meet demand in each country with affordable modelsCriderUR-VAvancierXR-VOdysseyPilot RidgelineBR-VMobilioBrioAmazeN-BoxN-OneN -WGNN-Box +GuangqiDongfengCR-VRDX Production AllocationIndianaOhioEastLibertyPlant(EL P)20172016CR-VMDXP ilotShiftCivicMDXG lobalSourceCivicExport to AlabamaPilotGlobal SourceCivicRidgelineOdysseyOdysseyRidgel ineAlabamaProductionPlant As of the end of 2017 IndianaCR-VCivicMexicoEl SaltoCR-VHR-VShiftOhio(East Liberty)RDXCR-VMDXM odel Allocation: North America15 SplitSedan(4D/5D)SUVMPVDG uangqiDongfengCGuangqiDongfengBGuangqiDo ngfengBy utilizing common platforms and strengthening local procurement and R&D functions, successive launch of cost competitive models being CR-V (July 2017)ElysionGreizUR-V(Mar 2017)CivicAvancierRegional Models: China16 Two joint ventures offer different model typesconsistent with their respective brand imageIdentify and prioritize core technologies and strengths (ex.)

5 Powertrain , packaging ) to be developed in-house and strategically partner with external specialists for other technologies.* Mono-zukuri: The art of making things Koto-zukuri: New experiences drawn from the art of making things2030 Vision(technology/manufacturing expertise)(innovative business solutions)172030 VisionGM:Collaborate on production of Next-Generation Fuel Cell stackHITACHI:Establish JV for the development, manufacture and sale of motors for electric vehiclesYAMAHA:Collaboration in the area of small-sized scooters in the Japanese marketJP:Collaboration toward the establishment of local charging station infrastructureGrab:Collaboration in the area of motorcycle sharing servicesWaymo:Technical collaboration for fully autonomous automobile driving technology182030 Vision19 Honda Business Status Other TopicsAutomobile Business OperationsMotorcycle Business Operations Business StrategyHonda Corporate Update 2030 Vision Financial Highlights20 Roadmap for Environmental Technologies201020202030DI engineCVT / DCTT urbo engine2000(CO2(g/km)0 Global expansionGlobal expansionTechnologies to increase electrical efficiencyTechnologies to increase thermal efficiencyZERO emissions technology212015 Clarity BEV (2017)Clarity PHEV(2017)Clarity Fuel Cell(2016)New FCVA ccord PHEV(2013)FCX Clarity(2008)FCX(2002)Developments related to expansion of electrified vehicles- Established Electric Vehicle Development Division in Oct 2016- Launch of Clarity BEV and Clarity PHEV in (2017) and Japan (2018).

6 - Introduced CR-V Hybrid model in 2017 in China (world premier)- Introduction of China-exclusive BEV model and Acura CDX Hybrid in 2018- Dedicated EV models based on Urban EV Concept will be launchedin Europe (2019) and Japan (2020).Strive to electrify two-thirdsof all vehicles we sell globally by 2030 New BEVin ChinaCR-V HEV(2017)Urban EV ConceptRoadmap for Environmental Technologies: Clarity Series-The Clarity Fuel Cell, only five-passenger FCV sedan in the industry, launched in Japan in March 2016 and in in December 2016, respectively-Clarity Plug-in Hybrid, which earned a class-leading 47-mile EV driving range rating and340-mile extended range rating, will be launched in the (2017) and in Japan (2018). 3-in-1 Clarity series provides unparalleled electric drive choice with premium midsize sedan capability and three advanced electrified powertrains in a single vehicle platform to address cost and manufacturabilityPHEV: Benefits of both Hybrids and BEVsBEV:Affordable model for daily useFCV: Supreme environmental technology22 Toward realization of a collision-free mobile societyExpanding adoption of Honda SENSINGJ apan: Make Honda SENSEING standard equipment on all new models to be introducedNorth America/ China/ Europe/ Other regions.

7 Expanding application to all-new models* For Acura vehicles, called Acura Watch 23 Automated Driving VisionServe people worldwide with the joy and freedom of collision-free mobilityRealizecollision-free society(zero human error)Provide freedom of mobilityfor everyonewhenever it is neededCreate freedomof time and space, make traveling enjoyable24- Strive to realize automated lane-changing function which enables the vehicle to drive in multiple lanes without any command from the driver on highways in 2020- Strive to achieve the technological establishment of level 4 automated driving for use in personal cars by around 2025 Automated Driving Roadmap 251,0661,0661,0668161,9231,9231,9231,923 200 200 200 200 1,080 930 930 9301,080+501,080+501,200+501,200+50151 151 151 151 Mar '16 Apr '17 Plan '19 Plan '225,550as of JapanNorthAmericaEuropeAsiaChinaOther5,4 00-150(Export only)Global Production Capacity(Export only)(Export only)5,270 Thailand -150FY2017 Unit(thousand)26 China Dongfeng +120 Plan(Export only)

8 5,520+120-250 Japan Saitama-250 PlanChinaEuropeCapacity increase to milEstablish stable production structure leveraging regional capacity + mutual parts/model sharingNorth AmericaSouth mil<Export> Global Models& Electrified mil200,000 Primarily Civic 5D production150, mil<Export> Acura, L/T models, Accord & CR-V930,000<Export> Strengthen mutual parts/modelsharing within Asia Export to Africa <Export> Leverage local cost benefit fornext markets (Africa) Middle East and AfricaJazzElectrified modelsCR-VAccord & L/T modelsAcura10-20%for Other regions80-90% for Local marketsTotal Capacity approx. units(Since April 2017)City Utilization ImageCivic 5D1,000CR-V , HR-V(plan)Civic(option)Flexible Global Production Infrastructure(Units)Clarity Series27 Civic 5 DAutomobile Operations by Regions10,430 11,588 12,777 14,491 15,600 16,522 17,479 17,550 05,00010,00015,00020,000CY09101112131415 16 Passenger CarsLight Trucks1,151 1,259 1,147 1,423 1,525 1,541 1,587 1,638 05001,0001,5002,000CY0910111213141516 AcuraHonda Passenger CarsHonda Light Trucks4,880 4,601 4,753 5,211 5,692 5,297 4,937 5,078 02,5005,0007,500FY1011121314151617 Registered vehiclesMini vehicles662 608 601 717 848 788 704 711 02505007501,000FY1011121314151617 Registered vehiclesMini vehicles28<Industry> <Honda>United StatesJapan<Industry> <Honda>Unit(thousands)Source: AutodataSource: HondaSource: MUMSSS ource.

9 HondaIncrease production capacity of light truck models to meet industry demandImprove capacity utilization through exporting global modelsAutomobile Operations by Regions29<Industry> <Honda>China<Honda>Europe (EU+EFTA)14,508 13,743 13,542 12,452 12,240 12,913 14,095 15,132 05,00010,00015,00020,000CY09101112131415 16256 187 150 141 140 133 132 1590100200300400CY091011121314151610,331 13,757 14,473 15,495 17,929 19,701 21,146 24,378 010,00020,00030,000CY0910111213141516 MinivanSUVMPVS edan580 652 622 599 757 793 1,010 1,256 05001,0001,500CY0910111213141516 AcuraSUVMPVS edanUnit(thousands)(excluding commercial vehicles)(EU and EFTA)(excluding commercial vehicles) 2008-2014 Wholesale2015-2016 Retail <Industry>Source: ACEA / HondaSource: ACEA / HondaSource: HondaSource: has been designated to serve asglobal supply base of the Civic expand sister models Operations by Regions<Industry>30<Honda>Brazil<Honda>Asia3,390 4,493 4,796 5,696 5,748 5,477 5,464 5,478 04,0008,000CY0910111213141516 MalaysiaThailandIndonesiaPhilippinesIndi a252 297 227 356 474 524 587 578 0250500750CY0910111213141516 MalaysiaThailandIndonesiaPhilippinesIndi a3,008 3,329 3,426 3,634 3,580 3,333 2,481 1,989 02,5005,000CY0910111213141516126 126 93 135 139 138 153 123 0100200CY0910111213141516 Unit(thousands)<Industry>Source: HondaSource: HondaSource: HondaSource: ANFAVEA(Five main market in Asia)* India.

10 Excluding commercial vehicles and pickups(Main market in Other Region)* excluding trucksIntroduce new models to meet specific market needs in each Asian Forex toughness by increasing local procurement and localization of New Model Introductions(global models only)31 CivicCY2015CY2016CY2017 North AmericaSedanCoupeHatchbackType RJapanSedanHatchbackType REuropeSedanHatchbackType RAsiaSedanChinaSedanBrazilSedanNovemberM archSeptemberJuneSepAprilAprilMarchAugus t March~CR-VCY2015CY2016CY2017 North AmericaGasAsiaGasChinaGasHEVD ecemberJulyMarch~Civic SedanCivic HatchbackCivic Type RCR-VCivic has already been launched in most is currently being introduced in many regions as be launchedAutomobile New Model Introductions(main models only)* Please note that To be launched models reflect the current plan and is subject to , photos are from currently available sources and are not actual specification : ChinaMarAprMayJunJulAugSepWR-V: Brazil, IndiaOdyssey: : JapanClarity PHEV: , JapanAccord: BEV: Launched in 201732 Business Status Other TopicsAutomobile Business OperationsMotorcycle Business Operations Business StrategyHonda Corporate Update 2030 Vision33 Financial Highlights04,0008,00012,00016, Global Unit Sales*excluding sales by Hero Honda*Operating profit and margin until FY13 are based on US GAAP while FY14 and after are based on IFRSO perating Profit and MarginOverview of Motorcycle Business Honda M/C Business = High Profitability + Stability + Growth Potential Yen (billion)Unit(thousand)34 Mega ModelsAnnual sales of each of these Mega Models has grown to approximately 3 million units.