Honda Motor Company, Ltd.

I thank you very much for taking time out of your busy schedule to attend our briefing today. We would now like to start Honda Motor Company Limited's financial results briefing for fiscal first quarter, end of June 30, 2025. First of all, allow me to introduce the attendees today. Mr. Eiji Fujimura, Director, Managing Executive Officer, CFO. Good to see you. Mr. Masao Kawaguchi, Operating Executive, Head of Accounting and Finance Unit. Good to see you. First, Mr. Fujimura will present the financial results of first quarter, end of June 30, 2025, and consolidated results forecast for full year to March 2026. Then Mr. Kawaguchi will present the details. Over to you, Mr. Fujimura. I thank you very much for your continued support for Honda's activities. I would now like to I would now like to start with a summary. Our operating profit for the fiscal first quarter came to 244.1 billion yen. Motorcycle operations saw sales expansion in Brazil and Vietnam, and we've attained the record high operating profit for a quarter period. In automobile operations, we needed to post impact from tariffs and non-acquiring expenses related to EV, while sales in North America were strong. The forecast for the full year results to March 2026 has been revised up to operating profit of 700 billion yen and net profit for the year of 420 billion yen. Due to a review of our tariff impacts and changes in exchange rate assumptions, this means 200 billion yen increase versus the previous forecast. An examination of the impact due to tariffs led to a revision of a gross impact to 400 billion yen, and for exchange rate in view of the recent developments, we are revising our assumption against the U.S. dollar from 135 to 140 yen. While uncertainty persists surrounding policy changes, including tariffs, we will improve our earnings structure and we aim to expand our profit further. Concerning the share buyback, which we announced on resolved on December 23rd of 2024 for the 1.1 trillion yen, as of July 31st of this year, shares worth 936.5 billion yen have been acquired. To give you the consolidated results for the first quarter in June 2025, operating profit was 244.1 billion yen, lower by 240.5 billion compared to the same period last year. Equity method earnings were 4.2 billion yen, higher by 2.7 billion yen, and the quarter profit attributable to the owner of the parent was 196.6 billion yen, lower by 197.9 billion yen. Next, I'd like to cover the forecast for the consolidated results for the full year. Again, compared to the previous forecast, our forecast is operating profit of 700.0 billion, up by 200 billion yen, and the profit for the year attributable to the owner of the parent of 420.0 billion yen, up by 170 billion yen. The exchange rate against the U.S. dollar is assumed at 140 yen for the year. The forecast for the full year dividend for the fiscal year ending in March 2026 is 70 yen per share, unchanged from the previous published forecast. The acquisition of owns shares resolved on December 23rd of 2024 for the amount of 1.1 trillion yen is explained earlier. Next, Mr. Kawaguchi will present the details of the results. Okay, then I will present the results for the first quarter. To give you the group unit sales during the three months of the first quarter, for motorcycle operations, compared to the same quarter last year, with growth mainly in Brazil and other regions, it came to 5.143 million. For automobile business, due to declines mainly in China and other Asian regions, it came to 839,000 units. And for power products, though there were declines in North America and Asia, Europe led the growth. The results, a total came to 828,000 units. The consolidated results during the three months of the first quarter are as explained earlier. Next, I'd like to explain the factor analysis of operating profit for the first quarter compared to the same period last year. Operating profit was 244.1 billion yen, down by 240.5 billion yen compared to the same period last year. Factors affecting the operating profit were impact from sales was positive by 109.1 billion yen due to unit sales increase in North America. Setting price and cost factors was an increase of 68.5 billion due to effective pricing revision. Expenses gave us a negative impact of 69.4 billion yen. R&D expenses led to profit decline of 24.5 billion yen. Currency effect results in a negative impact of 86.1 billion. EV-related non-recurring expenses led to the impact of 482.1 billion yen on a par with the same quarter last year. This EV-related non-recurring expenses include the provision for losses on EVs currently sold in the U.S. and the impact from write-off of development asset of EV models due to the change in our operating

profit per business segments. For motorcycles, OPU was 189 million yen. Automobiles, 29.6 billion yen of operating losses. Financial services, 85 billion yen of operating profits. And power products and other businesses, 200 million yen of operating losses. Operating profit of the motorcycle businesses marked 189 billion yen, up by 11.3 billion yen year on year. As for the factors behind the differences, the sales impact was positive by 41 billion yen due to increased sales volume in South America and so on. Pricing cost impact was positive by 14.2 billion yen due to the effect of a price revision and so on. Expenses squeezed profit by 12.7 billion yen. R&D increased profit by 1.3 billion. And currency effect reduced profit by 30.6 billion yen. And the tariff effect squeezed profit by 1.8 billion yen. For the automobile businesses, sales impact was positive by 46.4 billion yen due to increase of the sales volume in North America. Price and cost impact was positive by 53.5 billion yen due to the effect of the price revision and so on. Expenses negative for the profit by 43.1 billion yen. R&D was negative by 26.4 billion. And the foreign currency effect also negative by 47.3 billion yen. As I mentioned earlier, excluding one-time EV related expenses and the tariff impact, the operating profit would have been 205.8 billion yen. Regarding cash flows, free cash flows of the businesses other than financial services businesses was 294 billion yen. Net cash balance at the end of the quarter was ,907.9 billion yen. Operating cash flow after R&D adjustment was 583 billion yen. Moving on to the financial forecast of FY ending March 26. Regarding the forecast of the sales volume of the group, motorcycle unit sales will keep at 21.3 million units, reflecting the volume decline in Europe and increase in Brazil and other regions. For automobiles, we will keep the previous forecast of 3.62 million units. And for power products, we will keep the previous forecast of 3.67 million units. Consolidated earnings forecast for FYE March 2026 has been already explained. Next, I will explain the factors behind the changes of operating profit forecast -on-year. Operating profit is expected to decline by 513.4 billion yen -on-year because of the factors of sales impact being positive for the profit by 106 billion yen due to incremental volume of the motorcycles and automobiles in North America. Price and cost impact will be positive for profit by 350 billion yen due to the effect of the price revisions and so on. Expenses will be negative for the profit by 91.5 billion. R&D will be negative by 126 billion. Foreign currency impact will be negative by 302 billion yen. And the gross impact of the tariff will be negative by 450 billion yen. I'll explain the changes of operating profit forecast comparing to the previous guidance. Operating profit is to be up by 200 billion yen from the previous forecast because of the sales impact being negative by 50 billion yen due to one-time expenses related to EVs. Price and cost impact to be negative by 100 billion, 100 billion as we reviewed recovery of the tariff impact. And foreign currency impact will be positive by 150 billion yen as we changed currency exchange rate to 240 yen for a dollar. We examined the tariff impact in values which will be expected to be positive by 200 billion yen. Lastly, expected spending on capital expenditures, depreciation, amortization and R&D expenditures for fiscal year ending March 26 are shown on the slide. And that concludes my presentation. Thank you very much for your attention.

Thank you very