Honda Motor Company, Ltd.

Thank you for taking time to join us today. We'll now begin the announcement of Honda Motor Company, Ltd., fiscal first quarter ended June 30, 2026, financial results. First, the executives in attendance. Masao Kawaguchi, Executive Officer and CFO.

This is Kawaguchi.

How do you do? Sumihiro Takahashi, Operating Executive, Head of Accounting and Finance Unit This is Takahashi speaking. How do you do? Kawaguchi will outline the fiscal first quarter financial results and FYE March 31, 2027 financial forecast followed by Takahashi giving the details. Mr. Kawaguchi, please. At the outset, I would like to express my heartfelt sympathies to all those affected by the earthquake that hit Kumamoto on July 28th and their families. I also sincerely pray for the swift recovery and reconstruction of the affected areas. This slide shows the operating status of our major production sites after the 2026 Kumamoto earthquake. Regarding Kumamoto factory, production is suspended from the evening of July 28th to August 7th for nine days, and recovery efforts are underway. Thanks to these efforts, operations have been partially resumed today. We will continue to work towards full-scale operations. Regarding our automobile production sites, there have been parts shortages resulting from damage sustained by some suppliers. At Saitama factory, operations will be suspended for a total of six days until August 19, including the summer break. and at Suzuka Factory, operations will be suspended from August 6 tomorrow to the 19th, in total 5 days, including the summer break. We will monitor developments and decide when to resume production, and will announce at the appropriate timing. Next, fiscal results for the first quarter of the fiscal year ending March 31, 2027. Operating profit for the first quarter was a record high 530.7 billion yen. No EV-related losses were posted in this first quarter. Motorcycle business All-time high quarterly operating profit and operating profit margin were achieved, driven by strong global sales, particularly in India and Brazil. Automobile Business Despite struggle in China, unit sales steadily increased, mainly in North America, resulting in operating profit of 192.1 billion yen and an operating margin of 5.0%. Regarding Consolidated Business Forecast for the fiscal year ending March 31, 2027, we revised the exchange rate assumption to ¥155 per USD. Operating profit has been revised upward by ¥150 billion to ¥650 billion. Uncertainty in the Middle East calls for careful risk assessment regarding unit sales, material costs, and other factors. Therefore, these assumptions remain unchanged from the previous forecast. EV-related losses have also been revised to reflect the updated currency assumptions. Excluding EV-related losses, adjusted operating profit is projected at ¥1.17 trillion up ¥170 billion from the previous forecast. Next, financial foundation and shareholder returns. As of the end of the first quarter, net cash of non-financial services business stood at 3.3 trillion yen. We continue to maintain a substantial net cash position and a strong financial profile. Regarding shareholder returns, The forecast for the annual dividend for the fiscal year ending March 31, 2027 remains unchanged from the previous forecast at ¥70 per share. While targeting DOE 3%, we will strive to provide stable and sustainable dividends. Now, the details of the financial results will be given by Mr. Takahashi. Next, I will explain the financial results. At first, the first quarter total group unit sales year-on-year was motorcycle sales increased mainly in Asia and other regions, in particular Brazil, to 5,663,000 units. Automobile sales decreased to 786,000 units led by lower sales in Asia, particularly China. Power product sales decreased mainly in North America to 752,000 units. Next, the Q1 consolidated financial results year-on-year. Operating profit increased by 286.5 billion yen to 530.7 billion yen. Equity method investment profit increased by 18.4 billion yen to 22.6 billion yen. Quarterly profit attributable to owners of the parent company increased by 254.2 billion yen to 450.9 billion yen.