October 28, 2003
HONDA MOTOR CO., LTD. REPORTS
CONSOLIDATED FINANCIAL RESULTS
FOR THE FISCAL SECOND QUARTER AND
THE FIRST HALF ENDED SEPTEMBER 30, 2003
Tokyo, October 28, 2003--- Honda Motor Co., Ltd. today announced its consolidated
financial results for the fiscal second quarter and the first half ended September 30,
2003.
Second Quarter Results
Honda's consolidated net income for the fiscal second quarter ended September 30, 2003
totaled JPY137.3 billion (USD 1,235 million), an increase of 57.6% from the corresponding
period in 2002. Basic net income per Common Share for the quarter amounted to JPY 143.33
(USD 1.29), compared to JPY 89.54 for the same period in 2002. Two of Honda's American
Depositary Shares represent one Common Share.
Unit sales in all of Honda's business categories, namely motorcycles, automobiles and
power products, increased during the fiscal second quarter and consolidated net sales and
other operating revenue (herein referred to as "revenue") for the quarter amounted to JPY
2,017.2 billion (USD 18,132 million), an increase of 5.2% over the corresponding period in
2002.
Revenue included currency translation effects, which had a negative impact on foreign
currency denominated revenue from Honda's overseas subsidiaries translated into yen.
Honda estimates that had the exchange rate of yen remained unchanged from the same period
in 2002, revenue for the quarter would have increased by approximately 5.5%.
Consolidated operating income for the fiscal second quarter totaled JPY 151.6 billion (USD
1,363 million), a decrease of 0.9% compared to the corresponding period in 2002. This
decrease in operating income was primarily due to reduced revenue from decreased sales in
Japan and an increase in research and development expenses, offset positive impacts,such
as depreciation of the yen, ongoing cost reduction efforts and decrease in selling general
and administrative "SG&A" expenses.
Consolidated income before income taxes for the quarter totaled JPY 183.8 billion (USD
1,653 million), an increase of 67.2% from the corresponding period in 2002.
With respect to Honda's sales in the fiscal second quarter by business category,
motorcycle unit sales increased by 8.7% to 2,218,000 units, and revenue decreased 5.1%, to
JPY 233.5 billion (USD 2,099 million).
Honda's unit sales of automobiles increased by 3.2% to 735,000 units, due to higher sales
in North America and Asia. Revenue increased 6.9%, to JPY 1,646.2 billion (USD 14,798 million),
during the quarter.
Revenue from financial services increased 7.0% to JPY63.5 billion (USD 572 million).
Unit sales of power products totaled 978,000 units, an increase of 10.5% compared to the
corresponding period in 2002. Strong sales in North America and Europe were the major
factors for this increase in unit sales. Revenue from power products and other businesses
increased by 4.1% to JPY 76.8 billion (USD 691 million).
First Half-Year Results
Honda's consolidated net income for the first six months ended September 30, 2003 totaled
JPY 239.1 billion (USD 2,150 million), an increase of 22.8% from the previous year. Basic
income per Common Share for the fiscal first half amounted to JPY 249.34 (USD 2.24),
compared to JPY 199.98 for the corresponding period a year ago.
Consolidated net sales and other operating revenue for the six month period amounted to
JPY 4,025.4 billion (USD 36,184 million), an increase of 4.5% from last year.
Revenue included the negative effect of currency translation, and Honda estimates that if
the exchange rate of the yen had not changed from the previous year, revenue for the year
would have increased by approximately 6.9%.
Consolidated operating income for the fiscal first half totaled JPY 301.8 billion
(USD 2,713 million), a decrease of 6.8% compared to the corresponding period last year.
This decrease in operating income was primarily due to negative impacts, such as appreciation
of the yen, reduced revenue from decreased sales in Japan, an increase in selling, general
and administritive (SG&A) expenses, which offset positive impacts, including Honda's
cost reduction efforts.
Consolidated income before income taxes for the fiscal first half totaled JPY 331.8
billion (USD 2,983 million), an increase of 21.3% compared to the previous year.
With respect to Honda's sales for the fiscal first half by business category, motorcycle
unit sales increased 9.1% to 4,219,000 units due mainly to strong sales in Asia, however
revenue decreased 4.6% to JPY 475.0 billion (USD 4,270 million). This decrease in revenue
was due primarily to appreciation of the yen and a sales decrease in North America.
Both Honda's unit sales and revenue related to automobiles for the fiscal first half
increased by 2.6% to 1,443,000 units, and 5.7% to JPY 3,267.2 billion (USD 29,369
million), respectively. The major contributing factors to this increase in unit sales
were strong sales of the Element and all-new Accord in North America and continued sales
growth in Asia, which offset the negative impact from appreciation of the yen.
Revenue from financial services increased 7.3% to JPY127.5 billion (USD 1,146 million).
Unit sales of power products totaled 2,195,000 units, an increase of 9.4% compared to the
previous year. Higher sales in North America were the major factor in this increase in
unit sales. Revenue from power products and other businesses increased by 6.5% to JPY
162.5 billion (USD 1,461 million) due mainly to higher revenue from power products business.
Forecasts for the fiscal year ending March 31, 2004
The U.S. economies, Japan and other regions are expected to recover slowly in the
foreseeable future. Fears of a slowdown in the global economy and an impact of currency
movement are anticipated to remain, and competition in the Japanese market is expected to
intensify amid continuing weak consumer spending.
Under such circumstances, in connection with its forecasts of the financial results for
the fiscal year ending March 31, 2004, Honda projects the consolidated and unconsolidated
results as below:
FY2004 Forecasts for consolidated results
In billions of yen Changes from FY 2003
Net sales and other operating revenue 8,220 +3.1%
Income before income taxes 648 +6.3%
Net income 470 +10.2%
FY2004 Forecasts for unconsolidated results
In billions of Yen Changes from FY2003
Net sales 3,310 -0.4%
Ordinary profit 278 +14.6%
Net income 202 +18.8%
These forecasts are based on the assumption that the exchange rates for the yen to the
U.S. dollar and the euro for the current fiscal year will average JPY 115 and JPY 127,
respectively.
Honda projects that the year-end cash dividend will be JPY 19 per share of common stock.
Total cash dividends for the term will be JPY 38.
This announcement contains forward-looking statements within the meaning of Section 21E of
the U.S. Securities Exchange Act of 1934. Honda's actual results could materially differ
from those contained in these forward-looking statements as a result of numerous factors
outside of Honda's control. Such factors include general economic conditions in Honda's
principal markets, foreign exchange rates between the Japanese yen and other major
currencies, as well as other factors detailed from time to time in Honda's reports filed
with the U.S. Securities and Exchange Commission.
[1] Unit Sales Breakdown
(In thousands of units)
__________________________________________________________
Three months Three months Six months Six months
ended ended ended ended
Sep.30,2003 Sep.30,2002 Sep.30,2003 Sep.30,2002
_____________ _____________ ___________ ____________
MOTORCYCLES
Japan 120 121 214 215
(motorcycles included above) (120) (121) (214) (215)
North America 140 172 239 291
(motorcycles included above) (57) (79) (122) (138)
Europe 57 57 158 155
(motorcycles included above) (54) (54) (153) (150)
Asia 1,691 1485 3,189 2,817
(motorcycles included above) (1,691) (1,485) (3,189) (2,817)
Others 210 205 419 389
(motorcycles included above) (207) (205) (414) (384)
________________________________ _______ _______ _______ _______
Total 2,218 2,040 4,219 3,867
(motorcycles included above) (2,129) (1,944) (4,092) (3,704)
AUTOMOBILES
Japan 176 213 329 426
North America 385 365 782 732
Europe 57 58 113 104
Asia 84 49 163 95
Others 33 27 56 49
________________________________ _______ _______ _______ _______
Total 735 712 1,443 1,406
POWER PRODUCTS
Japan 135 124 245 252
North America 419 383 1,053 900
Europe 177 157 421 424
Asia 163 157 317 312
Others 84 64 159 118
________________________________ _______ _______ _______ _______
Total 978 885 2,195 2,006
[2] Net Sales Breakdown
(A) For the three months ended September 30, 2003 and 2002
(In millions of Yen)
_____________________________________________________________
Three months Three months
ended ended
Sep. 30, 2003 Sep. 30, 2002
_______________________ _______________________
MOTORCYCLE BUSINESS
Japan 27,219 ( 11.7% ) 26,442 ( 10.8% )
North America 71,240 ( 30.4% ) 89,641 ( 36.4% )
Europe 35,519 ( 15.2% ) 30,801 ( 12.5% )
Asia 58,976 ( 25.3% ) 55,025 ( 22.4% )
Others 40,563 ( 17.4% ) 44,060 ( 17.9% )
______________________ _______________________ _______________________
Total 233,517 ( 100.0% ) 245,969 ( 100.0% )
AUTOMOBILE BUSINESS
Japan 337,063 ( 20.5% ) 381,222 ( 24.8% )
North America 982,749 ( 59.7% ) 906,810 ( 58.9% )
Europe 125,871 ( 7.6% ) 110,890 ( 7.2% )
Asia 139,601 ( 8.5% ) 96,134 ( 6.2% )
Others 60,973 ( 3.7% ) 45,046 ( 2.9% )
______________________ _______________________ _______________________
Total 1,646,257 ( 100.0% ) 1,540,102 ( 100.0% )
FINANCIAL SERVICES
Japan 4,994 ( 7.9% ) 4,848 ( 8.2% )
North America 55,099 ( 87.6% ) 52,854 ( 89.4% )
Europe 1,824 ( 2.9% ) 1,390 ( 2.4% )
Asia 207 ( 0.3% ) 14 ( 0.0% )
Others 821 ( 1.3% ) - ( - )
______________________ _______________________ _______________________
Total 62,895 ( 100.0% ) 59,106 ( 100.0% )
POWER PRODUCT & OTHER BUSINESSES
Japan 29,510 ( 39.6% ) 30,314 ( 42.4% )
North America 23,659 ( 31.8% ) 22,152 ( 30.9% )
Europe 10,695 ( 14.3% ) 10,190 ( 14.2% )
Asia 6,638 ( 8.9% ) 5,848 ( 8.2% )
Others 4,032 ( 5.4% ) 3,094 ( 4.3% )
______________________ _______________________ _______________________
Total 74,534 ( 100.0% ) 71,598 ( 100.0% )
TOTAL
Japan 398,736 ( 19.8% ) 442,826 ( 23.1% )
North America 1,132,747 ( 56.1% ) 1,071,457 ( 55.9% )
Europe 173,909 ( 8.6% ) 153,271 ( 8.0% )
Asia 205,422 ( 10.2% ) 157,021 ( 8.2% )
Others 106,389 ( 5.3% ) 92,200 ( 4.8% )
______________________ _______________________ _______________________
Total 2,017,203 ( 100.0% ) 1,916,775 ( 100.0% )
Explanatory Note:
1. The geographical breakdown of net sales is based on the location of affiliated
and unaffiliated customers.
2. Net sales of power product & other businesses include revenue from sales of
power products and related parts, leisure businesses, trading and finance subsidiaries.
[2] Net Sales Breakdown - continued
(B) For the six months ended September 30, 2003 and 2002
(In millions of Yen)
_____________________________________________________________
Six months Six months
ended ended
Sep. 30, 2003 Sep. 30, 2002
_______________________ _______________________
MOTORCYCLE BUSINESS
Japan 50,903 ( 10.7% ) 51,975 ( 10.4% )
North America 130,534 ( 27.5% ) 164,254 ( 33.0% )
Europe 97,799 ( 20.6% ) 87,221 ( 17.5% )
Asia 119,881 ( 25.2% ) 107,256 ( 21.5% )
Others 75,954 ( 16.0% ) 87,128 ( 17.5% )
______________________ _______________________ _______________________
Total 475,071 ( 100.0% ) 497,834 ( 100.0% )
AUTOMOBILE BUSINESS
Japan 631,247 ( 19.3% ) 758,141 ( 24.5% )
North America 2,015,790 ( 61.7% ) 1,862,010 ( 60.2% )
Europe 252,169 ( 7.7% ) 204,265 ( 6.6% )
Asia 263,093 ( 8.1% ) 177,870 ( 5.8% )
Others 104,959 ( 3.2% ) 89,227 ( 2.9% )
______________________ _______________________ _______________________
Total 3,267,258 ( 100.0% ) 3,091,513 ( 100.0% )
FINANCIAL SERVICES
Japan 10,303 ( 8.2% ) 11,273 ( 9.6% )
North America 111,193 ( 88.1% ) 103,240 ( 88.2% )
Europe 3,561 ( 2.8% ) 2,589 ( 2.2% )
Asia 358 ( 0.3% ) 14 ( 0.0% )
Others 821 ( 0.6% ) - ( - )
______________________ _______________________ _______________________
Total 126,236 ( 100.0% ) 117,116 ( 100.0% )
POWER PRODUCT & OTHER BUSINESSES
Japan 57,579 ( 36.7% ) 55,657 ( 37.8% )
North America 52,008 ( 33.2% ) 51,035 ( 34.7% )
Europe 25,724 ( 16.4% ) 23,691 ( 16.1% )
Asia 14,272 ( 9.1% ) 10,897 ( 7.4% )
Others 7,283 ( 4.6% ) 5,868 ( 4.0% )
______________________ _______________________ _______________________
Total 156,866 ( 100.0% ) 147,148 ( 100.0% )
TOTAL
Japan 750,032 ( 18.6% ) 877,046 ( 22.8% )
North America 2,309,525 ( 57.4% ) 2,180,539 ( 56.6% )
Europe 379,253 ( 9.4% ) 317,766 ( 8.2% )
Asia 397,604 ( 9.9% ) 296,037 ( 7.7% )
Others 189,017 ( 4.7% ) 182,223 ( 4.7% )
______________________ _______________________ _______________________
Total 4,025,431 ( 100.0% ) 3,853,611 ( 100.0% )
Explanatory Note:
1. The geographical breakdown of net sales is based on the location of
affiliated and unaffiliated customers.
2. Net sales of power product & other businesses include revenue from sales of
power products and related parts, leisure businesses, trading and finance subsidiaries.
[3] Consolidated Financial Summary
(For the three months and six months ended September 30, 2003 and 2002)
Financial Highlights
(In millions of Yen)
________________________________________________________________________________
Three months Three months Six months Six months
ended % ended ended % ended
Sep.30,2003 Change Sep.30,2002 Sep.30,2003 Change Sep.30,2002
_____________ ________ _____________ ____________ ________ _____________
Net sales and other
operating revenue 2,017,203 5.2% 1,916,775 4,025,431 4.5% 3,853,611
Operating income 151,688 -0.9% 153,046 301,871 -6.8% 323,869
Income before income taxes 183,886 67.2% 109,997 331,881 21.3% 273,701
Net income 137,359 57.6% 87,181 239,178 22.8% 194,779
(In Yen)
________________________________________________________________________________
Net income per
Common share 143.33 89.54 249.34 199.98
American Depository Share 71.66 44.77 124.67 99.99
(In millions of U.S. Dollar)
______________________________________
Three months Six months
ended ended
Sep.30,2003 Sep.30,2003
______________ _____________
Net sales and other
Operating revenue 18,132 36,184
Operating Income 1,363 2,713
Income before income taxes 1,653 2,983
Net income 1,235 2,150
(In U.S. Dollar)
______________________________________
Net income per
Common Share 1.29 2.24
American Depositary Share 0.64 1.12
[4] Consolidated Statements of Income and Retained Earnings (Unaudited)
(A) For the three months ended September 30, 2003 and 2002
(In millions of Yen)
______________________________________
Three months Three months
ended ended
Sep.30,2003 Sep.30,2002
______________ _____________
Net sales and other
operating revenue 2,017,203 1,916,775
Operating costs and expenses:
Cost of sales 1,396,459 1,296,008
Selling, general and
administrative 352,928 362,721
Research and development 116,128 105,000
______________ _____________
Operating income 151,688 153,046
Other income:
Interest 3,393 1,727
Other 37,262 225
______________ _____________
Other expenses:
Interest 2,158 2,057
Other 6,299 42,944
Income before
income taxes 183,886 109,997
Income taxes 69,780 39,265
______________ _____________
Income before equity in
income of affiliates 114,106 70,732
Equity in income of affiliates 23,253 16,449
______________ _____________
Net income 137,359 87,181
Retained earnings:
Balance at beginning of period 3,245,153 2,858,539
Cash dividends paid - -
Transfer to legal reserves - -
______________ _____________
Balance at end of period 3,382,512 2,945,720
============== =============
(In Yen)
______________________________________
Net income per
Common Share 143.33 89.54
American Depositary Share 71.66 44.77
[4] Consolidated Statements of Income and Retained Earnings - continued
(B) For the six months ended September 30, 2003 and 2002
(In millions of Yen)
______________________________________
Six months Six months
ended ended
Sep.30,2003 Sep.30,2002
______________ _____________
Net sales and other
operating revenue 4,025,431 3,853,611
Operating costs and expenses:
Cost of sales 2,784,909 2,614,864
Selling, general and
administrative 719,779 701,855
Research and development 218,872 213,023
______________ _____________
Operating income 301,871 323,869
Other income:
Interest 5,297 4,093
Other 39,412 5,541
Other expenses:
Interest 5,527 6,377
Other 9,172 53,425
______________ _____________
Income before
income taxes 331,881 273,701
Income taxes 128,702 107,184
______________ _____________
Income before equity in
income of affiliates 203,179 166,517
Equity in income of affiliates 35,999 28,262
______________ _____________
Net income 239,178 194,779
Retained earnings:
Balance at beginning of period 3,161,664 2,765,600
Cash dividends paid (15,386) (14,616)
Transfer to legal reserves (2,944) (43)
______________ _____________
Balance at end of period 3,382,512 2,945,720
============== =============
(In Yen)
______________________________________
Net income per
Common Share 249.34 199.98
American Share 124.67 99.99
[5] Consolidated Balance Sheets
(In millions of Yen)
_____________________________________________________
Assets Sep. 30,2003 Mar. 31, 2003 Sep. 30,2002
_____________ _______________ ______________
(Unaudited) (Audited) (Unaudited)
Current assets:
Cash and cash equivalents 624,842 547,404 518,408
Trade accounts and notes 320,461 444,498 332,185
receivable
Finance subsidiaries 1,081,896 1,097,541 980,852
receivables, net
Inventories 784,796 751,980 670,268
Deferred income taxes 200,134 202,376 205,290
Other current assets 311,660 248,561 227,826
_____________ _______________ ______________
Total current assets 3,323,789 3,292,360 2,934,829
_____________ _______________ ______________
Finance subsidiaries-
receivables, net 2,416,333 2,230,020 2,024,071
Investments and advances 482,839 412,971 395,138
Property, plant
and equipment, at cost:
Land 347,596 342,991 336,708
Buildings 932,332 942,747 912,139
Machinery and equipment 1,986,273 2,023,724 2,018,426
Construction in progress 93,159 72,112 96,542
_____________ _______________ ______________
3,359,360 3,381,574 3,363,815
Less accumulated
depreciation 1,970,843 1,987,231 1,987,880
_____________ _______________ ______________
Net property,
plant and equipment 1,388,512 1,394,343 1,375,935
_____________ _______________ ______________
Other assets 380,314 351,597 241,612
_____________ _______________ ______________
Total assets 7,991,787 7,681,291 6,971,585
============= =============== ==============
[5] Consolidated Balance Sheets - continued
(In millions of Yen)
__________________________________________________
Liabilities and Stockholders'Equity
Sep. 30,2003 Mar. 31,2003 Sep.30,2002
_____________ ______________ ____________
(Unaudited) (Audited) (Unaudited)
Current liabilities:
Bank loans and commercial 803,532 877,954 937,819
paper
Current portion of long-term 405,533 304,342 142,231
debt
Trade payables 766,238 830,671 775,584
Accrued expenses 789,475 777,492 719,596
Income taxes payable 65,439 64,179 66,269
Other current liabilities 324,475 267,752 232,643
_____________ ______________ ____________
Total current liabilities 3,154,692 3,122,390 2,874,142
_____________ ______________ ____________
Long-term debt 1,283,072 1,140,182 953,833
Other liabilities 810,042 788,999 550,260
_____________ ______________ ____________
Total liabilities 5,247,806 5,051,571 4,378,235
_____________ ______________ ____________
Stockholders' equity:
Common stock 86,067 86,067 86,067
Capital surplus 172,719 172,529 172,529
Legal reserves 32,335 29,391 29,012
Retained earnings 3,382,512 3,161,664 2,945,720
Adjustments from foreign
currency translation (567,690) (469,472) (455,149)
Net unrealized gains on
marketable equity securities 31,544 14,820 12,611
Minimum pension
liabilities adjustments (308,384) (308,513) (187,824)
_____________ ______________ ____________
Accumulated other comprehensive (844,530) (763,165) (630,362)
income (loss)
Treasury Stock (85,122) (56,766) (9,616)
_____________ ______________ ____________
Total stockholders' equity 2,743,981 2,629,720 2,593,350
_____________ ______________ ____________
Total liabilities
and stockholders' equity 7,991,787 7,681,291 6,971,585
============= ============== ============
[6] Consolidated Statements of Cash Flows
(In millions of Yen)
________________________________
Six months Six months
ended ended
Sep.30,2003 Sep.30,2002
_______________ ______________
Cash flows from operating activities:
Net income 239,178 194,779
Adjustments to reconcile net income
to net cash provided by operating activities:
Depreciation 103,592 102,105
Deferred income taxes 66,145 (8,713 )
Equity in income of affiliates ( 35,999 ) ( 28,262 )
Loss on fair value adjustment of derivative
instrument (profit) ( 44,410 ) 43,462
Decrease (increase) in:
Trade accounts and notes receivable 117,169 97,858
Inventories ( 50,251 ) ( 62,948 )
Increase (decrease) in trade payables ( 36,811 ) ( 26,445 )
Other, net ( 56,008 ) 60,393
_______________ ______________
Net cash provided by operating activities 302,605 372,229
_______________ ______________
Cash flows from investing activities:
Decrease (increase) in investments and advances 21,109 11,785
Capital Expenditures ( 128,033 ) ( 133,290 )
Proceeds from sales of property,
plant and equipment 7,609 5,517
Decrease (increase) in finance
subsidiaries-receivables ( 425,584 ) ( 417,561 )
_______________ ______________
Net cash used in investing activities ( 524,899 ) ( 533,549 )
_______________ ______________
Cash flows from financing activities:
Increase (decrease) in short-term debt 19,679 ( 4,164 )
Proceeds from long-term debt 412,544 349,893
Repayment of long-term debt ( 76,343 ) ( 229,568 )
Acquisition of treasury stock ( 28,769 ) ( 9,567 )
Cash dividends paid ( 15,386 ) ( 14,616 )
Increase (decrease) in commercial paper
classified as long-term debt 354 2,069
_______________ ______________
Net cash provided by (used in)
financing activities 312,079 94,047
_______________ ______________
Effect of exchange rate changes on cash and
cash equivalents ( 12,347 ) ( 23,760 )
_______________ ______________
Net change in cash and cash equivalents 77,438 ( 91,033 )
Cash and cash equivalents at beginning of year 547,404 609,441
_______________ ______________
Cash and cash equivalents at end of year 624,842 518,408
=============== ==============
[7] Segment Information
(A) Business Segment Information
For the six months ended September 30, 2003
(In millions of Yen)
__________________________________________________________________________
Motor- Auto-
cycle mobile Financial Other
Business Business Services Businesses Total Eliminations Consolidated
________ ________ ________ __________ _________ ____________ ____________
Net sales and other
operating revenue:
Sales to unaffiliated
customers 475,071 3,267,258 126,236 156,866 4,025,431 - 4,025,431
Intersegment sales 0 0 1,311 5,707 7,018 (7,018)
_______ _________ _______ _______ _________ _______ _________
Total 475,071 3,267,258 127,547 162,573 4,032,449 (7,018) 4,025,431
Cost of sales,
S.G.A. and
R&D expenses 466,868 3,018,426 86,791 158,493 3,730,578 (7,018) 3,723,560
_______ _________ ______ _______ _________ _______ _________
Operating income 8,203 248,832 40,756 4,080 301,871 0 301,871
======= ========= ====== ======= ========= ======= =========
"For the six months ended September 30, 2002"
(In millions of Yen)
__________________________________________________________________________
Motor- Auto-
cycle mobile Financial Other
Business Business Services Businesses Total Eliminations Consolidated
________ ________ ________ __________ _________ ____________ ____________
Net sales and other
operating revenue:
Sales to unaffiliated
customers 497,834 3,091,513 117,116 147,148 3,853,611 - 3,853,611
Intersegment sales 0 0 1,737 5,495 7,232 (7,232) -
_______ _________ _______ _______ _________ _______ _________
Total 497,834 3,091,513 118,853 152,643 3,860,843 (7,232) 3,853,611
Cost of sales,
S.G.A. and
R&D expenses 460,508 2,845,067 85,333 146,066 3,536,974 (7,232) 3,529,742
_______ _________ _______ _______ _________ _______ _________
Operating income 37,326 246,446 33,520 6,577 323,869 0 323,869
======= ========= ======= ======= ========= ======= =========
Explanatory Note:
1. Segmentation of Business
Business segment is based on Honda's business organization and the similarity of the
principal products included within each segment as well as the relevant markets for
such products.
2. Principal products of each segment
Business Sales Principal Products
____________ _________________________________ ____________________________________________
Motorcycle Motorcycles, all-terrain vehicles Large-size motorcycles, mid-size motorcycles,
(ATV), personal water craft and motorized bicycles, all-terrian vehicles (ATV)
relevant parts personal water craft
Automobile Automobiles and relevant parts Compact cars, sub-compact cars, minivehicles
Financial Services Financial and insurance services N/A
Power Product
& Other businesses Power products and relevant parts, Power tillers, generators, general purpose
and others engines, lawn mowers, outboard engines
(B) Geographical Segment Information
The geographical segmentation is based on the location where sales originated.
For the six months ended September 30,2003 ( In millions ( In millions of Yen)
_________________________________________________________________________________________
North-
Japan America Europe Asia Others Total Eliminations Consolidated
________ __________ _________ ________ ________ ________ __________ ____________
Net sales and other
operating revenue:
Sales to
unaffiliated customers 871,082 2,316,190 373,035 311,499 153,625 4,025,431 - 4,025,431
Transfers between
geographical
segments 1,015,869 62,777 98,798 27,465 5,819 1,210,728 (1,210,728) -
________ __________ _________ ________ ________ ________ __________ ____________
Total 1,886,951 2,378,967 471,833 338,964 159,444 5,236,159 (1,210,728) 4,025,431
Cost of sales,
S.G.A. and R&D
expenses 1,809,548 2,209,599 454,484 314,826 148,145 4,936,602 (1,213,042) 3,723,560
________ __________ _________ ________ ________ ________ __________ ____________
Operating income 77,403 169,368 17,349 24,138 11,299 299,557 2,314 301,871
======== ========== ========= ======== ======== ======== ========== ============
For the six months ended September 30,2002 ( In millions ( In millions of Yen)
_________________________________________________________________________________________
North-
Japan America Europe Asia Others Total Eliminations Consolidated
________ __________ _________ ________ ________ ________ __________ ____________
Net sales and other
operating revenue:
Sales to
unaffiliated customers 989,145 2,187,855 319,762 213,967 142,882 3,853,611 - 3,853,611
Transfers between
geographical segments 928,269 67,177 64,036 11,829 2,513 1,073,824 (1,073,824) -
________ __________ _________ ________ ________ ________ __________ ____________
Total 1,917,414 2,255,032 383,798 225,796 145,395 4,927,435 (1,073,824) 3,853,611
Cost of sales,
S.G.A. and R&D
expenses 1,826,265 2,065,422 382,130 206,476 131,616 4,611,909 (1,082,167) 3,529,742
________ __________ _________ ________ ________ ________ __________ ____________
Operating income 91,149 189,610 1,668 19,320 13,779 315,526 8,343 323,869
======== ========== ========= ======== ======== ======== ========== ============
(C) Overseas Sales
For the six months ended September 30, 2003 ( In millions of Yen)
North-
America Europe Asia Others Total
_________ __________ ________ _________ __________
Overseas Sales 2,309,525 379,253 397,604 189,017 3,275,399
Consolidated Sales 4,025,431
Overseas Sales Ratio to Consolidated 57.4% 9.4% 9.9% 4.7% 81.4%
Sales
For the six months ended September 30, 2001 ( In millions of Yen)
North-
America Europe Asia Others Total
_________ __________ ________ _________ __________
Overseas Sales 2,180,539 317,766 296,037 182,223 2,976,565
Consolidated Sales 3,853,611
Overseas Sales Ratio to Consolidated 56.6% 8.2% 7.7% 4.7% 77.2%
Sales
[8] (A) Consolidated Balance Sheets
divided into Non-financial services businesses and Finance Subsidiaries (Unaudited)
(In millions of Yen)
_________________________________
Sep. 30,2003
% of total
_____________ ___________
Assets
