Accord - honda.co.jp

1 honda Corporate Update - 2017 Autumn Accord honda Corporate Update Business Status 2030 Vision Business Strategy Automobile Business Operations Motorcycle Business Operations Other Topics Financial Highlights 2. Profit Structure Profile over Past Decade and FY18 Forecast 130. 120. 110. 109 for 100 USD/JPY. FY18. 90. 80. 70. Yen (billion). 1,800 PP & Others Finance Motorcycle Automobile O/P Margin 1,600 US GAAP IFRS. 1,400 7%. 1,200 Lehman Earthquake Airbag Crisis Thai flood Inflator Issue 1,000 953 5%. 823 840. 800 745. 670. 569 544 3%. 600 461 503 501. 280. 363 153. 400. 231. 189 177 192 182 171. 200 1%. 183 203 199 178. 0. FY2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018(P) *. -200. 2012 -1%. * Forecast as of November1, 2017 3. Forecast: honda Group Unit Sales Unit Motorcycles Automobiles Power (Thousand). Products 18,770 19,180 5,130 6,121 6,165 6,165. 17,661 5,028 5,080. + 410 + 50 0. ( + %) ( + %) ( 0 %). FY17 FY18 FY18 FY17 FY18 FY18 FY17 FY18 FY18.

2 Results Previous Revised Results Previous Revised Results Previous Revised Forecast Forecast Forecast Forecast Forecast Forecast FY18 FY18 FY18 FY18 FY18 FY18. Previous Revised Change Previous Revised Change Previous Revised Change Forecast Forecast Forecast Forecast Forecast Forecast Japan 170 165 -5 680 690 + 10 265 280 + 15. North America 315 315 - 1,920 1,920 - 3,010 3,010 - Europe 220 225 +5 175 175 - 1,030 1,015 - 15. Asia 17,015 17,375 + 360 2,060 2,100 + 40 1,460 1,455 -5. Other Regions 1,050 1,100 + 50 245 245 - 400 405 +5. Total 18,770 19,180 + 410 5,080 5,130 + 50 6,165 6,165 - 4. FY18 Forecast: Change in Operating Profit Yen (billion). Operating profit - ( - % ). Excluding currency effects and one time issue Operating profit + ( + % ). + - - - + - Increase in - Currency Cost Reduction, SG&A Increase in Effects Impact of etc. R&D. Revenue, Litigation pension model mix, settlement accounting etc. treatment Operating margin Operating margin Operating margin Operating margin FY17 FY18.

3 Results Revised Forecast 5. Change in the company's shareholders' return policy Purpose for the change . Further improving the Company's capital strategy Points of the change . Acquisition of the Company's own shares at a timing that it deems optimal Goal: to maintain a Goal: to realize a return ratio shareholders' return ratio of alone of approximately 30%. approximately 30%. With 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. 6. honda Corporate Update Business Status 2030 Vision Business Strategy Automobile Business Operations Motorcycle Business Operations Other Topics Financial Highlights 7. 2030 Vision 8. 2030 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 safety 9.

4 2030 Vision Utilize our corporate resources effectively and strengthen our business foundation. 10. 2030 Vision Further enhance inter-regional coordination and collaboration and increase the efficiency of our operations from a global perspective. 11. Global models: Accord , Civic, CR-V, Vezel/ HR-V and Fit/ Jazz Accord - All-new Accord launched in October 2017 in to be followed by other markets Civic Accord - Underwent full model change in 2015 in and Sharing of down-sized successfully launched in global market turbocharged engine - Shares commonized platform between sedan, coupe at some trim levels and hatchback Focus on Civic CR-V. platform and parts commonality - All-new CR-V underwent full model change in 2016 in - Hybrid model will be launched initially in China Vezel/ HR-V. - Grew into strong model and became one of the global CR-V models since its launch in 2013. Accord 11% Civic Other 13%. CY2016 CR-V. Derivative 14%. Focus on models Vezel/ HR-V Fit Vezel platform and parts 10% 11%.

5 Commonality *Derivative models: City/Grace, Greiz and XR-V. Global Models continue to be widely popular representing Fit/ Jazz approx. 70% of CY2016 global honda unit sales 12. Global models: Direction of Model Development 2013 2014 2015 2016. Further enhance electrification, autonomous driving and connectivity technologies. Civic HR-V. Spearhead industry effort to realize a carbon-free and collision-free CR-V. mobile society. Fit Adopt Lead-Country Introduction Global Operation Reform Strategy Accord Concurrent development (Clarification of model development leadership in each region and increase model in all six regions development efficiency.). Adoption of locally optimized design Discuss introduction of modular strategies Increase commonality of platform and parts Introduce advanced platforms to (Civic, CR-V and Accord ) accommodate electrification of powertrains 13. Regional Models China: North America: Brand differentiation Light Truck models between two Joint Ventures Guangqi Dongfeng Pilot Crider UR-V.

6 Odyssey Avancier XR-V Ridgeline Asia: Meet demand in each Japan: Mini-vehicles country with affordable models N-Box Mobilio BR-V N-Box +. N-One N-WGN. Brio Amaze Introduction of regional models has also been expanding in each region. 14. Model Allocation: North America Production Allocation As of the end of 2017. Production Plant Ohio(East Liberty). 2016 2017 Indiana RDX RDX. Ohio East CR-V Civic Liberty Plant MDX CR-V. (ELP). Shift CR-V. MDX Split MDX. Pilot Alabama Odyssey Global Source Ridgeline CR-V. Indiana Civic Civic Shift CR-V. Alabama Mexico El Salto HR-V. Global Source Export to Civic Pilot Ridgeline Odyssey 15. Regional Models: China Segment Sedan(4D/5D) SUV MPV. Guangqi Accord Avancier Odyssey D. Dongfeng Spirior UR-V Elysion (Mar 2017). Guangqi Crider Jade C. Dongfeng Civic CR-V. (July 2017) Two joint ventures offer different model types Guangqi City Vezel consistent with their Fit respective brand image B. Dongfeng XR-V. Gienia Greiz By utilizing common platforms and strengthening local procurement and R&D functions, successive launch of cost competitive models being realized.

7 16. 2030 Vision * Mono-zukuri: The art of making things Koto-zukuri: New experiences drawn from the art of making things (technology/manufacturing expertise) (innovative business solutions). Identify and prioritize core technologies and strengths (ex. powertrain , packaging ) to be developed in-house and strategically partner with external specialists for other technologies. 17. 2030 Vision GM: Collaborate on production of Next-Generation Fuel JP: Collaboration toward the establishment of local Cell stack charging station infrastructure HITACHI: Establish JV for the development, manufacture Grab: Collaboration in the area of motorcycle sharing and sale of motors for electric vehicles services YAMAHA: Collaboration in the area of small-sized Waymo: Technical collaboration for fully autonomous scooters in the Japanese market automobile driving technology 18. 2030 Vision 19. honda Corporate Update honda Business Status 2030 Vision Business Strategy Automobile Business Operations Motorcycle Business Operations Other Topics Financial Highlights 20.

8 Roadmap for Environmental Technologies Strive to electrify two-thirds of all vehicles we sell globally by 2030. New FCV. 0 Clarity Fuel Cell ZERO. FCX FCX Clarity (2016) . New BEV Urban EV Concept emissions technology (CO2(g/km). (2008) in China (2002) Clarity BEV. (2017). Technologies to increase electrical Clarity PHEV. (2017) efficiency Accord PHEV. (2013) Global expansion CR-V HEV. Technologies to (2017). increase thermal Turbo engine efficiency Global expansion DI engine CVT / DCT. 2000 2010 2015 2020 2030. 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). - 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 launched in Europe (2019) and Japan (2020). 21. Roadmap for Environmental Technologies: Clarity Series 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 manufacturability PHEV: BEV: FCV: Benefits of both Affordable model for Supreme environmental Hybrids and BEVs daily use technology - 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 and 340-mile extended range rating, will be launched in the (2017) and in Japan (2018).)

9 22. Toward realization of a collision-free mobile society * For Acura vehicles, called Acura Watch . Expanding adoption of honda SENSING. Japan: Make honda SENSEING standard equipment on all new models to be introduced North America/ China/ Europe/ Other regions: Expanding application to all-new models 23. Automated Driving Vision Realize Provide freedom of mobility Create freedom collision-free society for everyone of time and space, make (zero human error) whenever it is needed traveling enjoyable Serve people worldwide with the joy and freedom of collision-free mobility 24. Automated Driving Roadmap .. - 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. 25. Global Production Capacity Unit (thousand). 5,550 -150 5,400 +120 5,520 -250 5,270.

10 Other 151 151. 151 151. 1,080 1,080 1,200. China 1,200. +50 +50 +50. (Export only). (Export only) (Export only) +50. (Export only). Plan Plan Asia 1,080 FY2017. 930 930 Japan China Thailand Dongfeng Saitama 930. -150. Europe 200 200 +120 200 -250. 200. North America 1,923 1,923 1,923. 1,923. Japan 1,066 1,066 1,066 816. as of Mar '16 Apr '17 Plan '19 Plan '22. 26. Flexible Global Production Infrastructure (Units). Utilization Image Japan Civic 5D. Electrified models Europe mil Jazz <Export>. Clarity Series North America 200,000 Global Models CR-V , HR-V Civic (plan). & Electrified models (option) mil Primarily Civic 5D. production Civic 5D <Export>. Acura, L/T models, Accord & Accord & CR-V. L/T models 10-20%. Middle East and Africa for Other regions City 1,000. 80-90% Acura CR-V. for Local markets South America Asia China 150,000. 930,000. <Export> mil Strengthen mutual parts/model Total Capacity sharing within Asia <Export>. Leverage local cost benefit for approx.