Honda Motor Company, Ltd.

Thank you very much for sparing your time to join us here today. We would now like to begin Honda Motor Company Limited FY2025 Third Quarter Financial Results Briefing. Allow me first to introduce the executives in attendance. Director, Executive Vice President, and Representative Executive Officer, Shinji Aoyama. How do you do? Director, Managing Executive Director, and CFO Eiji Fujimura. Thank you very much. First, Mr. Aoyama will overview the FY25 third quarter financial results and FY25 full-year consolidated forecasts, followed by Mr. Fujimura's explanation on the details.

Mr. Aoyama, the floor is yours.

Mr. Thank you for your continued support for Hondo's business activities. Thank you very much. And let me explain the financial results for the FY2025 third quarter. First, let me highlight the key points. The FY2025 third quarter cumulative operating profit was 1,139.9 billion yen, with an operating profit margin of 7.0%. In motorcycle business, sales volume remained strong globally and third quarter cumulative total was 15.5 million units. In automobile business, consolidated unit sales volume decreased by 297,000 units year-on-year despite solid sales in North America due to drop in Asia, mainly China. Operating cash flow after R&D adjustment representing funding for future investments remained at the same level year-on-year at ¥1,945,000,000. The FY25 consolidated financial forecasts and changed operating profit ¥1,420,000,000, profit for the year ¥950,000,000. Motorcycle unit sales has been revised upward to a record high due to strong global sales. Automobile operations, mainly due to decline in Japan, is revised downward to 3.75 million euros. However, due to rise in motorcycle sales and exchange rate, operating profit and profit for the year forecasts remain unchanged. A resolution was made on December 23, 2024 to repurchase 1.1 trillion yen worth of company shares. 184.9 billion yen has been acquired as of January 31, 2025. We will work to complete repurchase of 1.1 trillion yen in shares. Next, the situation in the major markets. Regarding motorcycle operations, due to strong demand in India and Brazil combined with economic recovery in Vietnam, sales exceeded the same period last year. Automobile business saw an increase in Japan and the United States, but due to the severe market environment in China, total sales dropped year on year. In Japan, sales volume in the third quarter was lower than the same period last year due to fierce competition amongst others. The cumulative consolidated financial results for FY25 third quarter is as follows. Operating profit increased by 63.5 billion yen year-on-year, totaling 1,139.9 billion yen. Equity method investment profit decreased by 94.5 billion yen, a loss of 27.2 billion yen. Profit for the period attributed to owners of the parent company was 805.2 billion yen, down 64.3 billion yen. Consolidated financial forecast for the fiscal year ending March 2025. We maintain our previous forecast for both operating profit at ¥1,420,000,000 and current profit attributable to owner of the parent company ¥950,000,000. Exchange rate assumption is ¥152 against the dollar for the fourth quarter and full year. The forecast for the annual dividend remains at ¥68 unchanged from the previous announcement. Additionally, a resolution was made on December 23, 2024 to repurchase 1.1 trillion yen worth of company shares. As of January 31, 2025, 184.9 billion yen has been acquired. Cumulative FY 2025 total of acquired shares is 472 billion yen. Mr. Fujimura will present the details of the financial results.