Annual Report 2010
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Honda Motor Co., Ltd. Annual Report 2010 Honda Motor Co., Ltd. Year Ended March 31, 2010 Annual Report 2010 This annual report is printed on recycled paper using soy ink with no volatile organic content. Furthermore, a waterless printing process was used to prevent toxic emissions. Printed in Japan Corporate Honda Motor Co., Ltd., operates under the basic principles of “Respect for the Individual” and Profile “The Three Joys”—expressed as “The Joy of Buying,” “The Joy of Selling” and “The Joy of Creating.” “Respect for the Individual” reflects our desire to respect the unique character and ability of each individual person, trusting each other as equal partners in order to do our best in every situation. Based on this, “The Three Joys” express our belief and desire that each person working in or coming into contact with our company, directly or through our products, should share a sense of joy through that experience. In line with these basic principles, since its establishment in 1948, Honda has remained on the leading edge by creating new value and providing products of the highest quality at a Contents 2 6 12 The Power of Dreams To Our Shareholders Review of Operations We would like to express Motorcycle Business our gratitude to you, our The Power shareholders, for your ongoing of support. We also want to thank Dreams the many people who have supported Honda’s growth over the years, including, first and foremost, our customers, as well as our business partners Automobile Business and the communities around the world where we are privileged to 3 do business. Summary of Operating Results by Business Power Product and Other Businesses 4 Financial Highlights Financial Services Business reasonable price, for worldwide customer satisfaction. In addition, the Company has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile society. The Company has grown to become the world’s largest motorcycle manufacturer and one of the leading automakers. With a global network of 390* subsidiaries and 102* affiliates accounted for under the equity method, Honda develops, manufactures and markets a wide variety of products, to earn the Company an outstanding reputation from customers worldwide. *As of March 31, 2010 30 34 Preparing for the Future Board of Directors, Introducing Honda’s Activities and Publications Honda aims to achieve global Corporate Auditors and CSR Report growth by further encouraging Operating Officers This report is not published in printed form, but is available on the Internet at the following URL: and strengthening innovation http://www.honda.co.jp/csr/ and creativity and creating quality products that please customers Environmental Report and exceed their expectations. Available at the following URL: http://www.honda.co.jp/environment/publications/index.html Philanthropy Report This report is not published in printed form, but is available on the Internet at the following URL: 31 http://www.honda.co.jp/philanthropy/ Cover: Risk Factors 37 CR-Z The all-new hybrid vehicle that combines a 1.5-liter i-VTEC Financial Section engine and Honda’s proprietary Integrated Motor Assist (lMA) system, and creates fusion between futuristic and dynamic 33 styling and exhilarating driving, along with outstanding fuel economy of 25 km/L.* * Fuel economy of continuously variable transmission (CVT) version measured in Corporate Governance 10·15 mode (Japan) Caution with Respect to Forward-Looking Statements This annual report contains “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on management’s assumptions and beliefs, taking into account information currently available to it. Therefore, please be advised that Honda’s actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Honda’s 71 principal markets; foreign exchange rates between the Japanese yen and the U.S. dollar, the Euro and other major currencies; and extensive environmental and other governmental regulations, as well as other Investor Information factors detailed from time to time. 1 The Power of Dreams Dreams inspire us to create innovative products that enhance mobility and benefit society. To meet the particular needs of customers in different regions around the world, we base our sales networks, research & development centers and manufacturing facilities in each region. Furthermore, as a socially responsible corporate citizen, we strive to address important environmental and safety issues. 2 (十億円) (十億円) (十億円) (十億円) 7,523 7,523 1,600 160 1,600 160 1,200 120 1,200 120 800 80 800 80 % % 14.1 1,763 14.1 1,763 400 40 400 40 232 320 276 232 320 276 0 0 0 0 05 06 07 08 09 05 06 07 08 09 日本 北米 欧州 アジア その他 日本 北米 欧州 アジア その他 1,600 1,600 (十億円) (十億円) (十億円) (十億円) 10,000 1,000 10,000 1,000 1,496 1,496 7,500 750 7,500 750 793 793 5,000 500 5,000 500 76.4 % 556 76.4 % 556 350 322 350 322 2,500 250 2,500 250 0 0 0 0 05 06 07 08 09 05 06 07 08 09 日本 北米 欧州 アジア その他 日本 北米 欧州 アジア その他 10,000 10,000 1,000 1,000 (十億円) (十億円) (十億円) (十億円) 400 80 400 80 1,893 1,893 300 60 300 60 200 40 200 40 1,306 1,306 100 20 100 3.4 % 20 970 3.4 % 970 516 502 516 502 0 0 0 0 -100 -20 -100 -20 05 06 07 08 09 05 06 07 08 09 日本 北米 欧州 アジア その他 日本 北米 欧州 アジア その他 (十億円) (十億円) (十億円) (十億円) 600 200 600 200 450 150 450 150 ドイツ カナダ ドイツ カナダ 英国 英国 300 100 300 100 米国 米国 5.8 % タイ 日本 5.8 % タイ 日本 150 50 150 50 ブラジル ブラジル 0 Summary0 of Operating Results by Business0 0 05 06 07 08 09 05 06 07 08 09 Percentage of Net Sales/Operating Income (Loss) Unit Sales by Region (Thousands) Net Sales by Years ended March 31 Years ended March 31 Business Net Sales (left scale) Operating Income (right scale) Net Sales (left scale) Operating Income (right scale) 2008 2009 2010 2008 2009 2010 Motorcycle Business 7,628 7,628 Yen (billions) Yen (billions) Yen (billions) Yen (billions) 7,628 7,628 Yen1,600 (billions) Yen (billions)160 Yen1,600 (billions) Yen (billions)160 1,600 160 1,600 160 7,628 7,628 Yen (billions) Yen (billions) Yen (billions) Yen (billions) 7,628 Yen 1,200(billions) Yen (billions) 120 1,200 120 1,600 160 1,600 160 7,6287,628 7,628 Yen1,600 1,200Yen(billions) (billions) Yen Yen(billions) (billions)160 120 1,200Yen (billions) Yen (billions)120 1,6001,600800 160 16080 1,600800 16080 7,628 Yen 1,200(billions) Yen (billions) 120 1,200 120 1,200 800 120 80 800 80 1,600 160 7,628 1,433 1,433 Yen (billions) Yen (billions) 1,2001,200400 120 12040 1,200400 12040 199 1,433 199 1,433 1,600 800 160 80 800 80 190 189 190 189 800 400 80 40 400 40 1,200 120 190 189 199 1,433 190 189 199 1,433 800 8000 80 800 8000 800 1,433 400 40 400 40 Japan North Europe Asia Other Japan North Europe Asia Other 1,200400 06 07 08 09 10 12040 06 07 08 09 10 190 189 199 1,4331,433 190 189 199 1,433 800 0 80 0 13.3% 0 0 190 189America 199 Regions America Regions Japan North Europe Asia Other Japan North Europe Asia Other 400 400 06 07 08 09 10 40 40 400 06 07 08 09 10 40 190 190 189America189 199 199 1,433Regions 190 America189 199 Regions 8001,6000 80 0 1,6000 0 0 0 Japan North Europe Asia Other Japan North Europe Asia Other 400 06 07 08 09 10 40 06 07 08 09 10 1,60006 07 08 09 10 1,600 Japan190 North189AmericaEurope199 Asia Other1,433Regions America Regions 0 0 0 0 0 0 America Regions Japan North Europe Asia Other Japan North Europe Asia Other 400 06 0607 0708 0809 0910 Automobile10 40 Business 06 07 08 09 10 Japan North Europe Asia Other Yen1,600 (billions) Yen (billions) Yen1,600 (billions) Yen (billions) 190 189America 199 Regions America Regions 0 0 America Regions 1,600 1,297 1,297 10,000Yen (billions)06 07 08 09 10 Yen (billions)1,000 10,000Yen (billions) Yen (billions)1,000 Japan North Europe Asia Other 1,6001,600 1,600 America Regions 10,0000 0 1,000 10,000 1,000 1,297 1,297 Yen (billions)06 07 08 09 10 Yen (billions) Yen (billions) Yen (billions) Japan North Europe Asia Other Yen1,600 (billions)7,500 Yen (billions) 750 7,500 750 America Regions 10,000 1,000 10,000 1,000 1,297 1,297 Yen10,000 Yen(billions) (billions) Yen Yen(billions)1,000 (billions) Yen (billions) Yen (billions) 1,297 950 950 1,6007,500 750 7,500 750 1,2971,297 950 1,297 950 10,00010,0005,000 1,0001,000500 10,0005,000 1,000500 646 646 Yen (billions)7,500 Yen (billions) 750 7,500 750 7,500 750 646 646 10,0005,000 1,000 500 5,000 500 1,297 950 950 Yen (billions) Yen (billions) 249 950 250 249 250 7,5002,5007,500 750 250750 2,5007,500 250750 5,000 500 5,000 500 646 1,297 249 950 950 250 646 249 950 250 10,0005,000 1,000500 646 7,5002,500 750 250 2,500 250 646 646 646 5,0005,0000 500 5000 5,0000 5000 249 950 250 249 250 7,5002,500 750 250 2,500 250 Japan North 249Europe Asia 250Other Japan North Europe Asia Other 2,500 0 06 07 08 09 10 250 0 0 06 07 08 09 10 0 5,000 500 646 America 249 249 950 250Regions250 America 249 Regions250 2,500 06 07 08 09 10 250 2,500 06 07 08 09 10 250 Japan North Europe Asia Other Japan North Europe Asia Other 2,500 250 76.4% America Regions America Regions 5,00010,0000 500 0 10,0000 0 646 0 0 Japan North 249Europe Asia 250Other Japan North Europe Asia Other 2,500 06 07 08 09 10 2501,000 06 07 08 09 10 1,000 10,00006 07 08 09 10 10,000 Japan NorthAmericaEurope Asia OtherRegions America Regions 0 0 0 0 0 0 America Regions 1,000 1,000 Japan North 249Europe Asia 250Other Japan North Europe Asia Other 2,500 06 0607 0708 0809 0910 10 250 06 07 08 09 10 Japan North