July 31, 2018

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS
FOR THE FISCAL FIRST QUARTER
ENDED JUNE 30, 2018

Tokyo, July 31, 2018--- Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal first
quarter ended June 30, 2018.

First Quarter Results

Honda's consolidated profit for the period attributable to owners of the parent for the fiscal first quarter ended June 30,
2018 totaled JPY 244.3 billion, an increase of 17.8% from the same period last year. Earnings per share attributable to
owners of the parent for the quarter amounted to JPY 137.75, an increase of JPY 22.71 from the corresponding period
last year. One Honda American Depository Share represents one common share.

Consolidated sales revenue for the quarter amounted to JPY 4,024.1 billion, an increase of 8.4% from the same period
last year, due primarily to increased revenue in all business operations.

Consolidated operating profit for the quarter amounted to JPY 299.3 billion, an increase of 11.2% from the same period
last year, due primarily to an increase in sale volume and model mix and decreased SG&A expenses.

Share of profit of investments accounted for using the equity method for the quarter amounted to JPY 54.3 billion, an
increase of 2.6% from the corresponding period last year.

Consolidated profit before income taxes for the quarter totaled JPY 358.2 billion, an increase of 6.9% from the same
period last year.

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Consolidated Statements of Financial Position for the Fiscal First Quarter Ended June 30, 2018

Total assets increased by JPY 302.6 billion, to JPY 19,651.8 billion from March 31, 2018, mainly due to an increase in
receivables from financial services and foreign currency translation effects, despite a decrease in cash and cash
equivalents. Total liabilities increased by JPY 169.7 billion, to JPY 11,284.8 billion from March 31, 2018, mainly due to
an increase in finance liabilities and foreign currency translation effects, despite a decrease in trade payable. Total equity
increased by JPY 132.9 billion, to JPY 8,366.9 billion from March 31, 2018 due mainly to increased retained earnings
attributable to increased profit for the period, despite a decrease attributable to acquisition of the Company's own shares.

Consolidated Statements of Cash Flows for the Fiscal First Quarter Ended June 30, 2018

Consolidated cash and cash equivalents on June 30, 2018 decreased by JPY 89.3 billion from March 31, 2018, to JPY
2,167.1 billion.

The reasons for the increases or decreases for each cash flow activity, when compared with the same period of the
previous fiscal year, are as follows:

Cash flows from operating activities

Net cash provided by operating activities amounted to JPY 214.4 billion for the fiscal first quarter ended June 30, 2018.
Cash inflows from operating activities increased by JPY 37.8 billion compared with the same period of the previous
fiscal year due mainly to an increase in cash received from customers, despite increased payments for parts and raw
materials.

Cash flows from investing activities

Net cash used in investing activities amounted to JPY 243.9 billion. Cash outflows from investing activities increased by
JPY 65.1 billion compared with the same period of the previous fiscal year, due mainly to an increase in payments for
acquisitions of other financial assets.

Cash flows from financing activities

Net cash used in financing activities amounted to JPY 60.3 billion. Cash outflows from financing activities decreased by
JPY 28.1 billion compared with the same period of the previous fiscal year, due mainly to an increase in proceeds from
financing liabilities, despite purchases of treasury stock.

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Forecasts for the Fiscal Year Ending March 31, 2019

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2019, Honda projects consolidated
results to be as shown below:

Fiscal year ending March 31, 2019

Yen (billions) Changes from FY 2018

Sales revenue 15,450.0 +0.6%
Operating profit 710.0 -14.8%
Profit before income taxes 930.0 -16.6%
Profit for the year 685.0 -39.3%
Profit for the year attributable to
owners of the parent 615.0 -41.9%
Yen
Earnings per share attributable to
owners of the parent
Basic and diluted 348.56

Note: The forecasts are based on the assumption that the average exchange rates for the Japanese yen to the U.S. dollar will be JPY
107 for the full year ending March 31, 2019.

The reasons for the increases or decreases in the forecasts of the operating profit, and profit before income taxes for the
fiscal year ending March 31, 2019 from the previous year are as follows.

Yen (billions)
Revenue, model mix, etc. + 9.5
Cost reduction, the effect of raw material cost fluctuations, etc. + 88.0
SG&A expenses - 33.0
R&D expenses - 22.0
Currency effect - 205.0
Settlement of multidistrict class action litigation* + 53.7
Restitution income* -14.7
Operating profit compared with fiscal year ended March 31, 2018 - 123.5
Share of profit of investments
accounted for using the equity method - 32.6
Finance income and finance costs - 28.7
Profit before income taxes compared with fiscal year ended March 31, 2018 - 184.9
* Litigation settlement and restitution income related to airbag inflator included in SG&A expenses in fiscal year 2018

This announcement 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 the actual results of the Company could
differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic
conditions in the principal markets of the Company, its consolidated subsidiaries and its affiliates accounted for by the equity-method,
and fluctuation of foreign exchange rates, as well as other factors detailed from time to time. The various factors for increases and
decreases in profit have been classified in accordance with a method that Honda considers reasonable.

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Dividend per Share of Common Stock

Fiscal first quarter dividend is JPY 27 per share of common stock. The total expected annual dividend per share of
common stock for the fiscal year ending March 31, 2019, is JPY 108 per share.

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[1] Condensed Consolidated Statements of Financial Position

Yen (millions)
Mar. 31, 2018 Jun. 30, 2018
Assets
Current assets:
Cash and cash equivalents 2,256,488 2,167,105
Trade receivables 800,463 737,184
Receivables from financial services 1,840,699 1,881,179
Other financial assets 213,177 258,643
Inventories 1,523,455 1,521,811
Other current assets 291,006 350,579
Total current assets 6,925,288 6,916,501
Non-current assets:
Investments accounted for using the equity method 679,517 714,085
Receivables from financial services 3,117,364 3,262,905
Other financial assets 436,555 439,004
Equipment on operating leases 4,088,133 4,262,870
Property, plant and equipment 3,062,433 3,038,773
Intangible assets 741,514 730,301
Deferred tax assets 129,338 120,901
Other non-current assets 169,022 166,464
Total non-current assets 12,423,876 12,735,303
Total assets 19,349,164 19,651,804
Liabilities and Equity
Current liabilities:
Trade payables 1,224,627 1,097,867
Financing liabilities 2,917,261 3,000,321
Accrued expenses 404,719 426,923
Other financial liabilities 115,405 162,241
Income taxes payable 53,595 62,973
Provisions 305,994 281,498
Other current liabilities 602,498 580,034
Total current liabilities 5,624,099 5,611,857
Non-current liabilities:
Financing liabilities 3,881,749 4,013,858
Other financial liabilities 60,005 58,231
Retirement benefit liabilities 404,401 420,749
Provisions 220,625 208,525
Deferred tax liabilities 629,722 665,594
Other non-current liabilities 294,468 305,991
Total non-current liabilities 5,490,970 5,672,948
Total liabilities 11,115,069 11,284,805
Equity:
Common stock 86,067 86,067
Capital surplus 171,118 171,118
Treasury stock (113,271) (156,712)
Retained earnings 7,611,332 7,760,896
Other components of equity 178,292 236,262
Equity attributable to owners of the parent 7,933,538 8,097,631
Non-controlling interests 300,557 269,368
Total equity 8,234,095 8,366,999
Total liabilities and equity 19,349,164 19,651,804

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[2] Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Comprehensive
Income

Condensed Consolidated Statements of Income

For the three months ended June 30, 2017 and 2018
Yen (millions)
Three months Three months
ended ended
Jun. 30, 2017 Jun. 30, 2018
Sales revenue 3,713,096 4,024,133

Operating costs and expenses:

Cost of sales (2,874,789) (3,162,696)
Selling, general and administrative (394,823) (371,656)
Research and development (174,273) (190,398)

Total operating costs and expenses (3,443,885) (3,724,750)

Operating profit 269,211 299,383

Share of profit of investments accounted for using the equity method 52,948 54,302

Finance income and finance costs:

Interest income 8,997 11,913
Interest expense (2,854) (2,963)
Other, net 6,723 (4,353)

Total finance income and finance costs 12,866 4,597

Profit before income taxes 335,025 358,282

Income tax expense (109,517) (91,560)

Profit for the period 225,508 266,722

Profit for the period attributable to:

Owners of the parent 207,335 244,330
Non-controlling interests 18,173 22,392

Yen
Earnings per share attributable to owners of the parent
Basic and diluted 115.04 137.75

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 Condensed Consolidated Statements of Comprehensive Income
For the three months ended June 30, 2017 and 2018
Yen (millions)
Three months Three months
ended ended
Jun. 30, 2017 Jun. 30, 2018
Profit for the period 225,508 266,722

Other comprehensive income, net of tax:

Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans － －
Net changes in revaluation of financial assets measured at fair value
through other comprehensive income 5,817 124
Share of other comprehensive income of investments accounted for
using the equity method (1,182) (1,284)
Items that may be reclassified subsequently to profit or loss
Net changes in revaluation of financial assets measured at fair value
－ (1)
through other comprehensive income
Exchange differences on translating foreign operations 6,492 71,534
Share of other comprehensive income of investments accounted for
using the equity method 3,349 (13,841)
Total other comprehensive income, net of tax 14,476 56,532
Comprehensive income for the period 239,984 323,254
Comprehensive income for the period attributable to:
Owners of the parent 219,855 302,588
Non-controlling interests 20,129 20,666

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[3] Condensed Consolidated Statements of Changes in Equity

As of and for the three months ended June 30, 2017

Yen (millions)
Equity attributable to owners of the parent
Other
Common Capital Treasury Retained components Non-controlling Total
stock surplus stock earnings of equity Total interests equity
Balance as of April 1, 2017 86,067 171,118 (26,189) 6,712,894 351,406 7,295,296 274,330 7,569,626
Comprehensive income for the
period
Profit for the period 207,335 207,335 18,173 225,508
Other comprehensive
income, net of tax 12,520 12,520 1,956 14,476
Total comprehensive
income for the period 207,335 12,520 219,855 20,129 239,984
Reclassification to retained
earnings 412 (412) － －
Transactions with owners and
other
Dividends paid (43,254) (43,254) (35,919) (79,173)
Purchases of treasury stock (3) (3) (3)
Total transactions with
owners and other (3) (43,254) (43,257) (35,919) (79,176)
Balance as of June 30, 2017 86,067 171,118 (26,192) 6,877,387 363,514 7,471,894 258,540 7,730,434

As of and for the three months ended June 30, 2018

Yen (millions)
Equity attributable to owners of the parent
Other
Common Capital Treasury Retained components Non-controlling Total
stock surplus stock earnings of equity Total interests equity
Balance as of April 1, 2018 86,067 171,118 (113,271) 7,611,332 178,292 7,933,538 300,557 8,234,095
Effect of changes in accounting policy (46,833) (208) (47,041) 6 (47,035)
Adjusted balance as of April 1, 2018 86,067 171,118 (113,271) 7,564,499 178,084 7,886,497 300,563 8,187,060
Comprehensive income for the
period
Profit for the period 244,330 244,330 22,392 266,722
Other comprehensive
income, net of tax 58,258 58,258 (1,726) 56,532
Total comprehensive
income for the period 244,330 58,258 302,588 20,666 323,254
Reclassification to retained
earnings 80 (80) － －
Transactions with owners and
other
Dividends paid (48,013) (48,013) (51,861) (99,874)
Purchases of treasury stock (43,441) (43,441) (43,441)
Total transactions with
owners and other (43,441) (48,013) (91,454) (51,861) (143,315)
Balance as of June 30, 2018 86,067 171,118 (156,712) 7,760,896 236,262 8,097,631 269,368 8,366,999

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[4] Consolidated Statements of Cash Flows
Yen (millions)
Three months Three months
ended ended
Jun. 30, 2017 Jun. 30, 2018
Cash flows from operating activities:
Profit before income taxes 335,025 358,282
Depreciation, amortization and impairment losses excluding equipment on
operating leases 177,979 186,819
Share of profit of investments accounted for using the equity method (52,948) (54,302)
Finance income and finance costs, net 14,519 (39,201)
Interest income and interest costs from financial services, net (30,983) (29,870)
Changes in assets and liabilities
Trade receivables 43,116 25,256
Inventories (75,532) 12,510
Trade payables (48,379) (55,189)
Accrued expenses (55,386) (42,209)
Provisions and retirement benefit liabilities (26,299) (26,241)
Receivables from financial services (5,461) (48,179)
Equipment on operating leases (51,744) (48,399)
Other assets and liabilities (71,802) (21,513)
Other, net 4,225 158
Dividends received 20,726 23,344
Interest received 57,816 65,751
Interest paid (22,018) (25,757)
Income taxes paid, net of refunds (36,217) (66,818)
Net cash provided by operating activities 176,637 214,442
Cash flows from investing activities:
Payments for additions to property, plant and equipment (124,693) (144,899)
Payments for additions to and internally developed intangible assets (35,828) (37,608)
Proceeds from sales of property, plant and equipment and intangible assets 4,529 7,022
Payments for acquisitions of investments accounted for using the equity method (2,450) (2,401)
Payments for acquisitions of other financial assets (52,603) (150,294)
Proceeds from sales and redemptions of other financial assets 31,536 84,214
Other, net 719 －
Net cash used in investing activities (178,790) (243,966)
Cash flows from financing activities:
Proceeds from short-term financing liabilities 1,878,152 1,882,899
Repayments of short-term financing liabilities (1,766,270) (1,824,528)
Proceeds from long-term financing liabilities 212,833 267,458
Repayments of long-term financing liabilities (335,354) (253,164)
Dividends paid to owners of the parent (43,254) (48,013)
Dividends paid to non-controlling interests (23,748) (29,227)
Purchases and sales of treasury stock, net (3) (43,441)
Other, net (10,904) (12,340)
Net cash provided by (used in) financing activities (88,548) (60,356)
Effect of exchange rate changes on cash and cash equivalents 4,143 497
Net change in cash and cash equivalents (86,558) (89,383)
Cash and cash equivalents at beginning of year 2,105,976 2,256,488
Cash and cash equivalents at end of period 2,019,418 2,167,105

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[5] Assumptions for Going Concern

None

[6] Notes to Consolidated Financial Statements

[A] Changes in accounting policies

(a) IFRS 9 “Financial Instruments”

Honda was an early adopter of IFRS 9 “Financial Instruments” issued in November 2009, amended in October 2010 and November
2013 (“IFRS9 (2013)”) prior to the year ended March 31, 2018 and has adopted the final version of IFRS 9 issued in July 2014 (“IFRS
9 (2014)”) with a date of initial application of April 1, 2018. The adoption of IFRS 9 (2014) resulted in changes in accounting policies
primarily for classification and impairment. IFRS 9 (2014) has an exemption allowing comparative information for prior periods not to
be restated with respect to classification and measurement (including impairment) changes. Therefore, the comparative information has
not been restated and continues to be reported under IFRS 9 (2013). Instead, the cumulative effect of adopting IFRS 9 (2014) was
recognized in the opening balance of equity as of the date of initial application on April 1, 2018. The following are primary changes
and corresponding impacts of adopting IFRS 9 (2014).

Classification of financial assets

Debt securities other than those classified into financial assets measured at amortized cost were classified into financial assets
measured at fair value through profit or loss under IFRS 9 (2013). IFRS 9 (2014) newly established a classification in which financial
assets are measured at fair value through other comprehensive income. Under IFRS 9 (2014), a financial asset shall be measured at fair
value through other comprehensive income if both of the following conditions are met: 1) the financial asset is held within a business
model whose objective is achieved by both collecting contractual cash flows and selling financial assets and 2) the contractual terms of
the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount
outstanding.

Honda has evaluated the business models within which financial assets are held and contractual terms of financial assets. As a result,
Honda has reclassified debt securities such as government bonds and municipal bonds held by certain subsidiaries from the financial
assets measured at fair value through profit or loss to financial assets measured at fair value through other comprehensive income as of
April 1, 2018.

The impact of this reclassification is as follows:

Yen (millions)
Carrying amounts Carrying amounts
as of March 31, as of April 1, 2018
Reclassification
2018 under IFRS 9 under IFRS 9
(2013) (2014)
Other financial assets:
Financial assets measured at fair value through
profit or loss:
Debt securities .................................... 69,829 (14,376) 55,453
Financial assets measured at fair value through
other comprehensive income:
Debt securities .................................... - 14,376 14,376

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 Impairment of financial assets
IFRS 9 (2014) replaced the incurred loss model under IAS 39 with the expected credit loss (ECL) model. The ECL model requires the
allowance for credit losses to be measured at amounts equal to either lifetime ECL for those financial assets which have experienced a
significant increase in credit risk (SICR) since initial recognition or 12-month ECL for financial assets which have not experienced a
SICR. Lifetime ECL represents ECL that results from all possible default events over the expected life of a financial asset. 12-month
ECL is the portion of lifetime ECL that results from default events that are possible within 12 months after the reporting date. ECL is a
probability-weighted estimate of the difference between the contractual cash flows and the cash flows that the entity expects to receive,
discounted at the original effective interest rates.

When determining whether credit risk has increased significantly, Honda assesses financial assets either individually based primarily
on delinquencies or collectively for groups of financial assets with shared risk characteristics such as the period of initial recognition,
collateral type, original term and credit score considering relative changes in expected default rates since initial recognition.

The application of the ECL model resulted in an increase in the allowance for credit losses of JPY 4,599 million as of April 1, 2018,
which is on receivables from financial services.

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(b) IFRS 15 “Revenue from Contracts with Customers”
Honda has adopted IFRS 15 ”Revenue from Contracts with Customers” with a date of initial application of April 1, 2018 by
recognizing the cumulative effect of initially applying this standard as an adjustment to the opening balance of equity at the date of
initial application. Therefore, the comparative information has not been restated and continues to be reported under the previous
accounting policy.

Honda's contracts with customers include promises to transfer goods or services without charges such as free inspections. Such
promised goods or services are generally considered performance obligations and related sales revenue is deferred under IFRS15, if it
is deemed material, while such sales was recognized at contract inception under the previous accounting policy.

Further, under IFRS 15, dealer incentives are considered variable consideration when determining the transaction price and sales
revenue is recognized only to the extent that it is highly probable that a significant reversal will not occur when the uncertainty
associated with the variable consideration is subsequently resolved, which results in higher deductions from sales revenue recognized
when products are sold to dealers.

The impacts of adopting IFRS 15 on Honda's condensed consolidated financial statements as of and for the three months ended
June 30, 2018 are as follows:

(Condensed Consolidated Statements of Financial Position)

As of June 30, 2018
Yen (millions)
Balances without
adoption of IFRS 15 Adjustments As reported
Assets
Current assets:
Cash and cash equivalents 2,167,105 - 2,167,105
Trade receivables 739,075 (1,891) 737,184
Receivables from financial services 1,881,179 - 1,881,179
Other financial assets 258,643 - 258,643
Inventories 1,521,811 - 1,521,811
Other current assets 349,773 806 350,579
Total current assets 6,917,586 (1,085) 6,916,501
Non-current assets:
Investments accounted for using the equity method 714,076 9 714,085
Receivables from financial services 3,262,905 - 3,262,905
Other financial assets 439,004 - 439,004
Equipment on operating leases 4,262,870 - 4,262,870
Property, plant and equipment 3,038,773 - 3,038,773
Intangible assets 730,301 - 730,301
Deferred tax assets 120,646 255 120,901
Other non-current assets 165,658 806 166,464
Total non-current assets 12,734,233 1,070 12,735,303
Total assets 19,651,819 (15) 19,651,804

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 Yen (millions)
Balances without adoption of
IFRS 15 Adjustments As reported
Liabilities and Equity
Current liabilities:
Trade payables 1,097,867 - 1,097,867
Financing liabilities 3,000,321 - 3,000,321
Accrued expenses 395,295 31,628 426,923
Other financial liabilities 162,241 - 162,241
Income taxes payable 62,973 - 62,973
Provisions 285,040 (3,542) 281,498
Other current liabilities 565,831 14,203 580,034
Total current liabilities 5,569,568 42,289 5,611,857
Non-current liabilities:
Financing liabilities 4,013,858 - 4,013,858
Other financial liabilities 58,231 - 58,231
Retirement benefit liabilities 420,749 - 420,749
Provisions 209,522 (997) 208,525
Deferred tax liabilities 676,068 (10,474) 665,594
Other non-current liabilities 304,110 1,881 305,991
Total non-current liabilities 5,682,538 (9,590) 5,672,948
Total liabilities 11,252,106 32,699 11,284,805
Equity:
Common stock 86,067 - 86,067
Capital surplus 171,118 - 171,118
Treasury stock (156,712) - (156,712)
Retained earnings 7,792,650 (31,754) 7,760,896
Other components of equity 237,606 (1,344) 236,262
Equity attributable to owners of the parent 8,130,729 (33,098) 8,097,631
Non-controlling interests 268,984 384 269,368
Total equity 8,399,713 (32,714) 8,366,999
Total liabilities and equity 19,651,819 (15) 19,651,804

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(Condensed Consolidated Statements of Income)
For the three months ended June 30, 2018
Yen (millions)
Balances without adoption of
IFRS 15 Adjustments As reported
Sales revenue 4,005,681 18,452 4,024,133
Operating costs and expenses:
Cost of sales (3,163,464) 768 (3,162,696)
Selling, general and administrative (372,114) 458 (371,656)
Research and development (190,398) - (190,398)
Total operating costs and expenses (3,725,976) 1,226 (3,724,750)
Operating profit 279,705 19,678 299,383
Share of profit of investments
accounted for using the equity 54,302 (0) 54,302
method
Finance income and finance costs:
Interest income 11,913 - 11,913
Interest expense (2,963) - (2,963)
Other, net (4,353) - (4,353)
Total finance income and finance costs 4,597 - 4,597
Profit before income taxes 338,604 19,678 358,282
Income tax expense (86,745) (4,815) (91,560)
Profit for the period 251,859 14,863 266,722

Profit for the period attributable to:

Owners of the parent 229,442 14,888 244,330
Non-controlling interests 22,417 (25) 22,392

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[B] Segment Information

Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Power
Product and other businesses, which are based on Honda’s organizational structure and characteristics of products and
services. Operating segments are defined as the components of Honda for which separate financial information is
available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in
assessing performance. The accounting policies used for these reportable segments are consistent with the accounting
policies used in the Company’s condensed consolidated financial statements.

Principal products and services, and functions of each segment are as follows:

Segment Principal products and services Functions

Motorcycle Business Motorcycles, all-terrain vehicles (ATVs), Research and development
side-by-sides (S×S) and relevant parts Manufacturing
Sales and related services

Automobile Business Automobiles and relevant parts Research and development

Manufacturing
Sales and related services

Financial Services Business Financial services Retail loan and lease related to Honda products
Others

Power Product and Other Power Products and relevant parts, Research and development
Businesses and others Manufacturing
Sales and related services
Others

1. Segment information based on products and services

As of and for the three months ended June 30, 2017

Yen (millions)
Financial Power Product
Motorcycle Automobile Services and Other Segment Reconciling
Business Business Business Businesses Total Items Consolidated
Sales revenue:
External customers 508,540 2,589,935 536,957 77,664 3,713,096 － 3,713,096
Intersegment － 34,635 2,732 5,449 42,816 (42,816) －
Total 508,540 2,624,570 539,689 83,113 3,755,912 (42,816) 3,713,096
Segment profit (loss) 78,842 140,344 49,864 161 269,211 － 269,211
Segment assets 1,440,194 7,781,275 9,494,404 318,045 19,033,918 10,393 19,044,311
Depreciation and amortization 18,210 155,103 182,232 3,733 359,278 － 359,278
Capital expenditures 9,914 102,638 465,785 1,688 580,025 － 580,025

As of and for the three months ended June 30, 2018

Yen (millions)
Financial Power Product
Motorcycle Automobile Services and Other Segment Reconciling
Business Business Business Businesses Total Items Consolidated
Sales revenue:
External customers 554,907 2,797,336 589,895 81,995 4,024,133 － 4,024,133
Intersegment － 47,855 3,290 5,847 56,992 (56,992) －
Total 554,907 2,845,191 593,185 87,842 4,081,125 (56,992) 4,024,133
Segment profit (loss) 92,130 151,681 57,179 (1,607) 299,383 － 299,383
Segment assets 1,501,577 7,930,533 9,783,246 306,719 19,522,075 129,729 19,651,804
Depreciation and amortization 17,703 164,631 190,329 3,410 376,073 － 376,073
Capital expenditures 9,750 122,615 504,192 2,442 638,999 － 638,999

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Explanatory notes:
1. Intersegment sales revenues are generally made at values that approximate arm's-length prices.
2. Unallocated corporate assets, included in reconciling items, amounted to JPY 394,601 million as of June 30, 2017 and JPY 417,739 million as of June 30, 2018
respectively, which consist primarily of cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

In addition to the disclosure required by IFRS, Honda provides the following supplemental information for the financial
statements users:

2. Supplemental geographical information based on the location of the Company and its subsidiaries

As of and for the three months ended June 30, 2017

Yen (millions)
North Other Reconciling
Japan America Europe Asia Regions Total Items Consolidated
Sales revenue:
External customers 507,944 2,008,877 166,748 827,096 202,431 3,713,096 － 3,713,096
Inter-geographic
areas 517,080 121,248 46,519 154,606 1,431 840,884 (840,884) －
Total 1,025,024 2,130,125 213,267 981,702 203,862 4,553,980 (840,884) 3,713,096
Operating profit (loss) 21,536 101,589 6,653 97,833 14,730 242,341 26,870 269,211
Assets 4,202,768 10,838,441 663,091 2,794,158 643,550 19,142,008 (97,697) 19,044,311
Non-current assets
other than financial
instruments and
deferred tax assets 2,475,066 4,797,297 109,051 703,479 174,345 8,259,238 － 8,259,238

As of and for the three months ended June 30, 2018

Yen (millions)
North Other Reconciling
Japan America Europe Asia Regions Total Items Consolidated
Sales revenue:
External customers 554,143 2,177,299 172,979 918,723 200,989 4,024,133 － 4,024,133
Inter-geographic
areas 586,072 136,051 64,262 176,989 2,346 965,720 (965,720) －
Total 1,140,215 2,313,350 237,241 1,095,712 203,335 4,989,853 (965,720) 4,024,133
Operating profit (loss) 14,712 110,360 7,035 122,514 22,635 277,256 22,127 299,383
Assets 4,373,497 11,140,457 666,118 2,981,065 610,157 19,771,294 (119,490) 19,651,804
Non-current assets
other than financial
instruments and
deferred tax assets 2,581,488 4,707,715 97,930 666,829 144,446 8,198,408 － 8,198,408

Explanatory notes:
1. Major countries or regions in each geographic area:
North America United States, Canada, Mexico
Europe United Kingdom, Germany, Belgium, Turkey, Italy
Asia Thailand, Indonesia, China, India, Vietnam
Other Regions Brazil, Australia
2. Sales revenues between geographic areas are generally made at values that approximate arm's-length prices.
3. Unallocated corporate assets, included in reconciling items, amounted to JPY 394,601 million as of June 30, 2017 and JPY 417,739 million as of June 30, 2018
respectively, which consist primarily of cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

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[C] Other

1. Loss related to airbag inflators

Honda has been conducting market-based measures in relation to airbag inflators. Honda recognizes a provision for
specific warranty costs when it is probable that an outflow of resources embodying economic benefits will be
required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. There is a
possibility that Honda will need to recognize additional provisions when new evidence related to the product recalls
arise, however, it is not possible for Honda to reasonably estimate the amount and timing of potential future losses
as of the date of this report.

In the United States and Canada, various class action lawsuits and civil lawsuits related to the above mentioned
market-based measures have been filed against Honda. The plaintiffs have claimed for properly functioning airbag
inflators, compensation of economic losses including incurred costs and the decline in the value of vehicles, as well
as punitive damages. Most of the class action lawsuits in the United States were transferred to the United States
District Court for the Southern District of Florida and consolidated into a multidistrict class action litigation.

For the three months ended September 30, 2017, Honda has reached a settlement with the plaintiffs of the
multidistrict class action litigation in the United States. As of the date of this report, this settlement is subject to
final court approval. For the three months ended September 30, 2017, Honda recognized the settlement of JPY
53,739 million as selling, general and administrative expenses, which includes funds contributed to enhance airbag
inflator recall activities.

For the class action lawsuits and civil lawsuits other that the above, Honda did not recognize a provision for loss
contingencies because the conditions for a provision have not been met as of the date of this report. Therefore, it is
not possible for Honda to reasonably estimate the amount and timing of potential future losses as of the date of this
report because there are some uncertainties, such as the period when these lawsuits will be concluded.

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