1 2 3 4 5 6 7 8 07 09 10 11 13 Honda Sustainability Report 2020 06 102-2 1 2 3 4 5 6 7 8 Overview of Honda Business Domains Principal Businesses Segments Motorcycles Automobiles Motorcycles represent the origin of both Honda’s “mono-zukuri (the art of manufacturing)” “Let’s change the landscape of the automobile industry.” Honda’s automobile business began and business. Under the philosophy of “building products close to the customer,” Honda under this slogan in 1963 and has now grown to sales of about 5 million vehicles globally has practiced mono-zukuri rooted in each country and region. The Company now sells each year. To enrich the lives of its customers, Honda seeks to provide automobiles and more than 20 million motorcycles each year worldwide, and in December 2019 reached services that are secure, stress-free and uniquely Honda and that support the freedom of cumulative global production of 400 million units. Honda provides the joy of mobility and a mobility for all. fun riding experience with its diverse array of models: the Super Cub, which has been sold Honda has been working to achieve the target of electrifying two-thirds of its global in more than 130 countries and is the most widely used motorcycle in the world; commuter automobile sales by 2030. Recent initiatives include the release of the Honda e electric models providing a means of transportation for people’s daily lives; and super sports vehicle, designed for a society that is connected via energy. This model is equipped with models that offer the excitement of riding a MotoGP-class motorcycle on public roads. Honda Personal Assistant, a stress-free voice recognition service. Another example is the As a way to respond to the growing global concerns about environmental issues, Honda adoption of a two-motor hybrid system, which had previously been used on medium-sized has also released the Benly e: series of electric motorized scooters. In this way, Honda vehicles, in the Jazz/Fit compact model. remains committed to meeting the expectations of customers worldwide and opening up new Additionally, Honda has been actively engaged in research and developing automated frontiers for the motorcycle market, thus becoming a driving force in the global motorcycle driving technologies to improve the performance of its Honda Sensing, a safety and driver- industry. assistance system, as part of its ongoing efforts to realize a collision-free mobile society. CT125 Hunter Cub leisure-oriented CBR1000RR-R Fireblade SP large super sports model Honda e electric vehicle New Fit model equipped model in the Super Cub series with a two-motor hybrid system overview Honda Sustainability Report 2020 07 102-2 1 2 3 4 5 6 7 8 Overview of Honda Business Domains Life Creation Aircraft and Aircraft Engines As part of its Power Products Business, Honda has provided a diverse range of items, The development of aircraft and aircraft engines has been an important R&D theme since the including general-purpose engines, tillers, generators, snow throwers, lawnmowers, pumps establishment in 1986 of the Wako Center, which engages in research on basic technologies, and outboard engines. Cumulative global production of power products reached 150 million and a dream since the founding of Honda itself. The resulting HondaJet is noteworthy for its units in September 2019, and to date customers in more than 50 countries have selected main wing airfoil and fuselage nose shape, which features Honda’s original Natural Laminar Honda’s products. Flow (NLF) to reduce aerodynamic drag, as well as its revolutionary Over-The-Wing Engine Recently, Honda announced a professional-use, electrified power unit offering the same Mount (OTWEM) design. A proof-of-concept version of the HondaJet, fitted with the HF118, levels of reliability and installation compatibility as the GX series of engines, which are a high-efficiency turbofan engine originally and wholly designed by Honda, made its first regarded as the world standard power source for various types of commercial-grade work flight in 2003 and demonstrated the highest flight performance in its class. Subsequently, equipment. For general customers, Honda now offers a cordless lawnmower and has been Honda established Honda Aircraft Company in the U.S. state of North Carolina to develop rapidly expanding its lineup of electrified products that are easier to use, quiet to operate and manufacture the HondaJet. Separately from this, Honda also worked on the engine and environmentally friendly. for the aircraft. In collaboration with General Electric (GE), Honda began developing and In April 2019, Honda changed the name of the Power Products Business to the Life Creation manufacturing the GE Honda HF120 production model engine. A production version of the Business, to expand its domain to include energy and other new businesses for the future. In HondaJet finally reached the market in 2015, followed by the release of an upgraded version, the energy field, Honda will push ahead with vehicle-to-grid* (V2G) field tests to use electric the HondaJet Elite, in 2018. vehicles (EV) as a temporary electric storage and discharge device to help stabilize power The HondaJet is a fusion of its beautiful and unique fuselage design, innovative aerodynamic supply. By doing so, Honda seeks to realize an enriched and sustainable society. and structural technologies and highly efficient engine. The fusion has led to excellent fuel efficiency, high flight performance, a more spacious cabin (about 30% larger than that of *A system to connect EVs and other plug-in vehicles to the power grid and use electricity stored in their batteries to adjust the grid’s other companies’ equivalent models), less noise and greater maneuverability. These and demand and supply balance. other features earned high marks, and as a result, the HondaJet became the most delivered aircraft* in the very light jet category for the third consecutive year since 2017. *Survey by the General Aviation Manufacturers Association (GAMA). HRG416 cordless lawnmower GX160 general-purpose engine HRG416 XB cordless lawnmower eGX electrified power unit HondaJet Elite HF120 turbofan engine overview Honda Sustainability Report 2020 08 1 2 3 4 5 6 7 8 Overview of Honda Value Creation History 2012 2014 2014 2015 2016 2017 2030 First in industry to Secures 100% in Achieves cumulative Enters aircraft Achieves cumulative Cumulative global production of Two-thirds of disclose estimated disclosure score global motorcycle industry with global automobile Honda Super Cub reaches automobiles sold to be CO2 emissions for CDP 2014 production volume of the HondaJet production volume 100 million-unit milestone electrified vehicles from product use 300 million units of 100 million units 2010s onward 2011 2014 2015 2016 2017 2020 2050 Achieves cumulative Establishes world’s first Launches Honda Walking Revises Honda Selected as a Aims to reduce Aims to halve CO2 power products single-package Smart Hydrogen Assist Device for use in Corporate member of the Dow CO2 emissions emissions compared production volume Station in conjunction with the training of walking Governance Jones Sustainability with 2000 levels of 100 million units Iwatani Corporation Basic Policies intensity in World Index products by 30% 2005 1997 1993 1987 1981 Starts leasing Attains ISO14001 Honda’s general-purpose engine Launches Completes first domestically produced world’s first certification in Belgium and first in world to receive approval Japan’s first automobile equipped with driver fuel cell vehicle at the Hamamatsu Factory for conformity with U.S. exhaust airbag-equipped assistance features for persons with and Tochigi Factory gas regulations automobile upper-arm disabilities (Civic) 1980s ~ 2000s 2006 1999 1996 1990 1986 1981 Develops flexible-fuel Launches Launches world’s first Introduces Secures top place Launches Honda vehicle (FFV) for Brazil Insight, the first self-regulating, flex-time/childcare in U.S. CSI Study Electro Gyro-Cator hybrid car in the two-legged humanoid leave system navigation system United States walking robot 1947 1948 1949 1953 1960 1963 Starts production of Formulates Starts motorcycle Starts production Introduces human Starts the A-Type auxiliary “The Three Joys” production with of first power resources automobile bicycle engines the Honda C-Type product, the H-Type qualification production engine system with the T360 1940s ~ 1970s 1946 1948 1953 1958 1960 1970 1971 Establishes Establishes Communicates Launches the Separates R&D Center Establishes Launches low-pollution Honda Technical Honda Motor Co., Ltd. policy of “120% Super Cub into an independent entity Driving Safety CVCC engine Research Institute Quality” (Honda R&D Co., Ltd. Promotion Center established) overview Honda Sustainability Report 2020 09 102-1,102-2,102-3,102-4,102-5,102-6,102-7,203-2 1 2 3 4 5 6 7 8 Overview of Honda Unit Sales and Principal Operation Bases Joy of mobility to 29.8 million people transcending national borders 2,854 844 1,798 238 134 Motorcycles Automobiles Power (1,000 units) 1,443 Products Europe 1,011 337 Regional headquarters: 532 Honda Motor Europe Ltd. (U.K.) Motorcycles Automobiles Power (1,000 units) Products Motorcycles Automobiles Power (1,000 units) North America Products China Regional headquarters: Honda North America, Inc. (U.S.A.) Regional headquarters: Honda Motor (China) Investment Co., Ltd. (Beijing) 688 175 311 Motorcycles Automobiles Power (1,000 units) Products Japan Regional headquarters: Honda Motor Co., Ltd. (Tokyo) 16,245 133 32 71 1,141 Motorcycles Automobiles Power (1,000 units) Products 137 Africa & Middle East 101 Motorcycles Automobiles Power (1,000 units) Products 983 South America 612 Regional headquarters: Honda South America Ltda. (Brazil) Motorcycles Automobiles Power (1,000 units) Products Asia & Oceania Regional headquarters: Asian Honda Motor Co., Ltd. (Thailand) Company name: Honda Motor Co., Ltd. Established: September 1948 • The graphs show unit sales (retail) of motorcycles, automobiles and President and Representative Director, CEO: Takahiro Hachigo power products (in units of 1,000) for FY2020 (April 2019 to March 2020).