Honda Corporate Update – FY22 Spring Accord (Japan) 1 1 Honda Corporate Update ➢ Executive Summary President Press Conference (Apr 23)Dividend Policy ➢ Automobile Business Strategy ➢ Motorcycle Business Strategy ➢ ESG Updates ➢ Financial Highlights 2 2 Honda Corporate Update ➢ Executive Summary President Press Conference (Apr 23)Dividend Policy ➢ Automobile Business Strategy ➢ Motorcycle Business Strategy ➢ ESG Updates ➢ Financial Highlights 3 3 意志を持って動き出そうとしている人を支えるパワーになる Aim to become the “power” to support people who are trying to do things based on their own initiative 4 4 環境・安全の新目標 New environmental and safety targets 全製品,企業活動を通じた Hondaの二輪・四輪が関与する カーボンニュートラル 交通事故死者ゼロ 年 Carbon neutrality for 2050 Zero traffic collision fatalities involving Honda all products and corporate activities motorcycles and automobiles Mobility Power unit Energy Robotics 5 5 「環境負荷ゼロ」の循環型社会を目指す Strive for a circular/resource-recycling society that aims for “zero environmental impact“ 2050年 カーボンニュートラル Carbon Neutrality 二酸化炭素排出量、実質ゼロ CO2 emissions, net zero クリーンエネルギー リソースサーキュレーション Clean Energy Resource Circulation カーボンフリーエネルギー活用率100％ サステナブルマテリアル使用率100％ 100% utilization of carbon-free energy 100% use of sustainable materials 6 6 Honda eMaaS" concept EaaS カーボンフリーエネルギー活用拡大 MaaS Expansion of the use of carbon-free energy モバイルパワーパックの 環境に優しく賢い電気の利用 Environmental- responsible and smart use of 自由に移動する喜び electricity 活用拡大 The joy and freedom of mobility マイクログリッド Mobile Expanded use of MPPs Micro-grid Power Pack 電動パワープロダクツ 充電ステーション Electrified Charging station power products 電動二輪、リキシャなど Electrified bikes/rickshaws 電気 大容量バッテリー Electricity Large-capacity batteries V2X サービス V2X services マルチパスウェイ 電動四輪車 Multi-pathway 高圧水電解技術の応用 Electrified automobiles Application of high 水素 車載大容量バッテリーの活用 pressure water 多様なモビリティへの展 electrolysis technology FC システム 開 Hydrogen Use for various types of Utilization of large-capacity vehicle batteries 汎用電源に活用 FC systems mobility products Use as general-purpose power source 商用FCトラック FCV FC commercial- use trucks コネクテッド FCシステムの プラットフォーム Connected platform 応用と展開 豊かな暮らし、クリーンな社会の実現に貢献 Application and implementation of FC systems 7 7 四輪車電動化 Electrification of automobiles 先進国トータル グローバル All advanced nations combined Global 2030年 2035年 2040年 40％ 80％ 100％ EV/FCVの販売比率 EV/FCV unit sales ratio 8 8 四輪車電動化 Electrification of automobiles EV/FCVの販売比率 EV/FCV unit sales ratio 北米 North America 9 9 革新電動技術×商品（2020年代後半～） Innovative electrification technologies x products (in the second half of the 2020s) 全固体電池の研究 Hondaならではの空間価値 今期より実証ラインでの生産技術検証に着手 独創的なアイデア/デザイン/デジタル技術を融合 Research on all-solid-state batteries Unique value only Honda can offer The verification of production technology Combining digital technologies with unique creativity and using a demonstration line starts this fiscal year original designs 10 10 二輪車電動化 Electrification of motorcycles 政府目標を、大きく上回る削減目標率を設定 Honda sets targets that far exceed the targets set by the governments of emerging countries インド 中国 インドネシア ベトナム タイ 電動化 India Chin Indonesia Vietnam Thailand Electrification a -70% 燃費改善 -46% Fuel economy improvement -77% -75% -82% Government Honda Government Honda Government Honda Government Honda Government Honda バイオ燃料の活用 Goals Goals Goals Goals Goals Use of biofuels 「パリ協定の各国CO2削減目標を二輪の排出総量に置き換えた場合のシミュレーション」 “Simulation of replacing the Paris Agreement CO2 reduction targets for each country with total motorcycle emissions 11 11 電動化：モバイルパワーパック活用の拡がり 電動車ラインナップの拡充 Expanding the use of Honda Enhanced lineup of EV models MPP(Mobile Power Pack) Honda GYRO Mobile Power Pack e: FUN領域での EV商品の投入も計画 GYRO CANOPY Plan to introduce EV models e: in the “FUN” area BENLY e: ～2024年 パーソナル領域 パワープロダクツ製品や 「リキシャ」を活用した 原一、原二クラス等 マイクロモビリティ等 実証実験スタート 3機種の新型EVを投入 への拡大を検討 Started demonstration Introduce 3 new EV models Power products in area of personal use & micro-mobility products testing using “rickshaw” tricycle taxies 12 12 FC Hydrogen Fuel cell 幅広い用途への拡大 Long-standing commitment to research, development, and commercialization of FC technology FCV(パーソナルユース) 商用トラック 定置電源 可搬型電源 GMとの共同開発 Commercial-use trucks Stationary Movable power sources power sources FCV (personal use) Joint development with GM 2020年 いすゞ自動車との共同研究開始 燃料電池を ⚫ パワートレインに採用 2020 Start of joint development with Isuzu Adopting fuel cells for power train ⚫ 2022 年度中に公道での実証試験を 開始することを目指す 2022 Aiming to start demonstration experiments on public roads within the fiscal year 13 13 安全への取り組み Safety Initiatives 2050年に達成を目指す新目標 New 2050 goal Hondaの二輪、四輪が関与する 全方位安全運転支援型ADASを2030年までに 交通事故死者ゼロ 先進国での全機種展開をはかる Zero traffic collision fatalities involving Strive to apply omnidirectional ADAS to all new automobile Honda motorcycles and automobiles models introduced in advanced nations by 2030 二輪・四輪共存安全技術の研究強化 教育・啓発活動や法規制の働きかけ Safety technologies which enable safe Educational and awareness-building activities coexistence of motorcycles and and approaching safety from legislative aspects automobiles, which only Honda can create 14 14 Dividend Policy Dividend per Share (Yen） FY21 FY22 FY20 (Previous FY21 (Expectation) forecast) 1st Quarter End 28 11 11 (55) Interim Dividend 2nd Quarter End 28 19 19 3rd Quarter End 28 26 26 (55) Year-end Dividend 4th Quarter End 28 26 54 Fiscal Year 112 82 110 (110) Fiscal Year 【Change of the Dividend Policy】 ・Strive to pay stable and continuous dividends aiming at a consolidated dividend payout ratio of approximately 30%. ・Make semiannual distributions (an interim dividend and a year-end dividend). Dividend Policy will be changed on the condition of receiving approval regarding the necessary amendments to the Articles of Incorporation at the Ordinary General Meeting of Shareholders of the Company scheduled to be held in June 2021. 15 15 Honda Corporate Update ➢ Executive Summary President Press Conference (Apr 23)Dividend Policy ➢ Automobile Business Strategy ➢ Motorcycle Business Strategy ➢ ESG Updates ➢ Financial Highlights 16 16 Honda’s Initiatives Strengthening the foundation of existing business Making through preparations toward future growth Introduction of Honda Architecture Strengthen global/regional models NEW Simplify model allocation in North America Electrific Electrific Electrific ation ation Enhance efficiency of global ation target target production network target ▽ Thailand ▽ Mexico, Philippines, Argentina Carbon BEV FC BEV FC BEV FC ▽ India ▽ Saitama（JPN）, UK, Turkey neutrality 40% 80% 100% ▽Strengthen automobile business structure HEV HEV ▽ Announce merger of 4 group suppliers ICE ICE ▽ Launch of new company 60% 20% ▽ Honda/GM alliance ▽ Launch co-developed BEV ▽Launch new EV models which adopt ▽Honda/CATL alliance e:Architecture from the 2nd half of the 2020s ▽CATL starts batteries supply ▽ ▽ Introduce 10 xEV in China within 5 years ▽ Introduce electrified mini-vehicles in Japan ▽ Received type designation qualifying for Level 3 automated driving in Japan (equipped in new Legend launched in Mar. 2021) 2020 2022 2026 2030 2035 2040 2050 17 Strengthening the foundation of existing business (auto) <Sedan> Individual characteristics <Light truck> Parts sharing area (Basic framework) ✓ From 16M initial parts-sharing began. ✓ Now introducing Honda Architecture to increase development efficiency and further increase parts-commonality in mass-production models. ✓ To be applied first to 2021 global model and then subsequent models. Global Models Reduce the total number of variations to one-third vs. 2018 Regional Models Consolidate certain regional models to enhance competitiveness Unit Other 5,550 5,587 5,590 China Main changes Japan 5,140 (thousand) China Sayama -250 Asia China GHAC +120 Dongfeng +120 UK -150 Europe Donfeng +120 India -100 Turkey -50 Argentina -30 Brazil North America Thailand -150 Mexico -63 Sumare -120 Japan Philippine -30 Itirapina +120 Mar '16 Mar '20 Mar '21 Plan '22 ✓ No model to be produced in more than 2 plants ✓ No more than 3 models to be produced in any plant By 2025 • Reduce R&D man-hours by 30% and transfer the resources into development of advanced next-generation technologies • Reduce global production cost by 10% (vs 2018) 18 18 Strengthening the foundation of existing business (HEV) Honda Hybrid System “Intelligent Multi Mode Drive (i-MMD)” Concept Applied to 2020 All New FIT ✓ Increase model application globally ✓ Reduce the cost of i-MMD by 25% by 2022 ✓ Assuming high-voltage, integrated control and battery technologies for i-MMD to be the base for EV/FCV development 19 19 Strengthening Automobile Business Structure Previous structure New structure (Effective April 2020) Collaborative structure where each area Unified structure integrates the entire process of S-E-D-B maintains autonomy from development through mass-production Automobile Production Honda R&D Purchasing Automobile Operations Operations Operations Co., Ltd. Operations Honda Engineering Co., Ltd. Integrated Mass- Mass- Strategy planning Individual model production production planning Integrated development preparation /Sales development Engineering/pr Buying/ Development Sales oduction purchasing New structure (Effective April 2020) Honda R&D Co., Ltd. Automobile Center Innovative Research Excellence Separated and integrated to Automobile Operations in Honda Motor Co., Ltd. Innovative Research Excellence, Power Unit & Energy Design Center Life Creation Center New Honda R&D Co., Ltd. to lead the advancement of mobility and new value creation in the daily lives of each HRD Sakura and every individual 20 20 Automobile Sales by Region Unit Japan United States (thousands) <Industry> <Industry> 20,000 Passenger Cars Light Trucks 7,500