Honda Motor Co., Ltd.

TOKYO:

Despite some unfavorable factors such as a decrease in automobile unit sales due to the semiconductor supply shortage and the lockdown of Shanghai, and an increase in the cost of raw materials, consolidated operating profit for the fiscal first quarter ended June 30, 2022, amounted to 222.2 billion yen (a year-on-year decrease by 20.9 billion yen), securing operating profit margin equivalent to that of the same period last year. This was due primarily to the effect of changes in sales prices and costs, a reduction of incentives and favorable currency effects.

Consolidated profit for the fiscal first quarter attributable to owners of the parent amounted to 149.2 billion yen (a year-on-year decrease by 73.2 billion yen), due primarily to a decrease in the share of profit of investments accounted for using the equity method in China.

The previously announced forecast for consolidated operating profit for the current fiscal year (April 1, 2022 through March 31, 2023) was revised upward by 20 billion yen to 830 billion yen. The previously announced forecast for profit for the fiscal year attributable to owners of the parent remains the same, 710 billion yen.

Honda will acquire its own shares, with the maximum acquisition amount of 100 billion yen, with the purposes including improving efficiency of its capital structure and implementing a flexible capital strategy.

1. Consolidated financial summary and business-by-business results for the fiscal first quarter (3 months) ended June 30, 2022

   Sales revenue: 3,829.5 billion yen (a year-on-year increase of 6.9%)

   Although automobile sales decreased, consolidated sales revenue experienced a year-on-year increase due primarily to an increase in motorcycle sales and favorable currency effects.

   Operating profit: 222.2 billion yen (a year-on-year decrease of 8.6%)

   Profit for the period attributable to owners of the parent: 149.2 billion yen (a year-on-year decrease of 32.9%)

   1) Motorcycle business

   Sales revenue: 676.0 billion yen (a year-on-year increase of 30.5%)

   Increase due primarily to a sales increase in Asia and favorable currency effects.

   Operating profit: 97.8 billion yen (a year-on-year increase of 21.2%)

   Increase due primarily to an increase in profit related to changes in sales prices and costs and favorable currency effects.

   2) Automobile business

   Sales revenue: 2,328.1 billion yen (a year-on-year increase of 3.4%)

   Although sales decreased mainly in North America, sales revenue experienced a year-on-year...