Honda Report 2023

What drives your dreams?

Contents
Value Creation Story

5 Key Themes

Honda Philosophy 

2Sources of Value Creation
by Numbers 

3

Global Brand Slogan 

4CEO Message 

5Value Creation Process 

7Corporate Strategy 

8Financial Strategy 

12Editorial Policy■ To Realize a Zero

Environmental Impact Society
Environmental Strategy 27■ To Realize a Zero Traffic

Reference Framework

Collision Society

Safety Strategy 37■ The Evolution of Human

Business Strategy
Electrification Business Strategy 

15

Automobile Business Strategy 

16Motorcycle Business Strategy 

21Power Products Business Strategy 2442This report covers the entire Honda Group, which consists of Honda Motor Co., Ltd.
and its 382 domestic and overseas companies (313 consolidated subsidiaries and69 affiliates accounted for under the equity method). Sections that do not cover theentire Honda Group are indicated as such with a reference to the specific scope.

Reporting Period■ Creation of Innovative

Technologies

Challenges in New Fields 

In producing this report, we used as reference such sources as the International
Integrated Reporting Framework of the Value Reporting Foundation, which wasconsolidated into the IFRS Foundation on August 1, 2022, and Integrated Reportingfor Corporate Value Creation of the Ministry of Economy, Trade and Industry.

Organizations Covered

Capital Management

Human Capital Strategy 

Honda believes that promoting constructive dialogue with shareholders andinvestors is essential for achieving its sustained growth and increasing corporate
value over the mid- to long term.
Honda strives to expand opportunities for dialogue and information
disclosure with stakeholders such as institutional investors and analysts. We thenappropriately feedback their opinions and requests to management in a timely
manner for use in discussions to further raise corporate value.

51

This report focuses primarily on the activities undertaken during FY2023 (April
1, 2022 – March 31, 2023), and also includes past background information andactivities conducted up to the time of publication, as well as other matters
including future outlook and plans.

Disclaimer

This report contains pastand current factual data of
Honda Motor Co., Ltd. aswell as plans and outlook
and future projections
based on its management
policies and management
strategies as of the date of
publication. These future
projections are assumptions
or decisions derived fromthe information available
at the time this report was
produced. Please note thatthe results of future businessactivities and events
may vary depending onchanges in conditions andcircumstances. This report
may also contain corrections,restatement or significant
changes to information
provided in previous reports.

■ Brand Value Enhancement
Enhancement of Consistent Brand

55

Governance 

56

Disclosure Material

Medium- to long-term perspective

Honda Report[Integrated Reports]
Honda ReportManagement 

Honda Report 2023

2023

Related Data

Financial

Major Indicators 

70

10-Year Summary 

71Company Overview 72

ESG Data Book

Securities Report
有 価 証 券 報 告 書
事業年度

自2022年４月１日(第99期)

至2023年３月31日

Nonfinancial

Honda
ESG Data Book

2023

■ Form 20-F
■ Financial Statements■ Corporate Governance Reports

本田技研工業株式会社(E02166)

Results

Honda Report 2023

1

Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

Honda Philosophy
Initiative
Initiative

Respect for the
Individual

人間尊重
人間尊重

Equality
Equality

Respect
Respect
forforthetheIndividual
Individual

The Three Joys

三つの喜び
三つの喜び

Trust
Trust

基本理念
基本理念
Fundamental

The
TheJoyJoyofof
BuyingBuying
The
TheThree
Three
Joys
Joys
The
TheJoyJoyofofSelling
Selling

The
TheJoyJoyofofCreating
Creating

Beliefs

Initiative : I nitiative means not to be bound by preconceived ideas, but think creatively andact on your own initiative and judgment, while understanding that you musttake responsibility for the results of those actions.
Equality : E quality means to recognize and respect individual differences in one anotherand treat each other fairly. Our company is committed to this principle and tocreating equal opportunities for each individual. An individual’s race, sex, age,religion, national origin, educational background, and social or economic statushave no bearing on the individual’s opportunities.
Trust

Company
Principle

Management
Policies: The relationship among associates at Honda should be based on mutual trust.
Trust is created by recognizing each other as individuals, helping out whereothers are deficient, accepting help where we are deficient, sharing ourknowledge, and making a sincere effort to fulfill our responsibilities.

The Joy of Buying : The joy of buying is achieved through providing products and services
that exceed the needs and expectations of each customer.
The Joy of Selling : The joy of selling occurs when those who are engaged in selling andservicing Honda products develop relationships with a customer
based on mutual trust. Through this relationship, Honda associates,
dealers and distributors experience pride and joy in satisfying thecustomer and in representing Honda to the customer.

The Joy of Creating : The joy of creating occurs when Honda associates and suppliers
involved in the design, development, engineering and manufacturingof Honda products recognize a sense of joy in our customers anddealers. The joy of creating occurs when quality products exceed
expectations and we experience pride in a job well done.

Maintaining a global viewpoint, we are dedicated to supplying products of thehighest quality yet at a reasonable price for worldwide customer satisfaction.
■ Proceed always with ambition and youthfulness.

■ Respect sound theory, develop fresh ideas and make the mosteffective use of time.

■ Enjoy your work and encourage open communications.
■ Strive constantly for a harmonious flow of work.

■ Be ever mindful of the value of research and endeavor.

Honda Report 2023

2

Value Creation Story
めざす姿

イントロ

Business Strategy
全社戦略

5 Key Themes
重点施策

Governance
ESG

Related Data
関連データ

Sourcesof Value
Creation by Numbers Six Capitals
数値で見る
価値創造の源泉
Financial
Capital
財務資本

A strong financial base that allows
us to invest resources for
変革に向けた資源投入を可能とtransformation

Human Capital
人的資本

Manufacturing
Capital
製造資本

Support for individual andorganizational growth that leads
価値創造につながる「個」と
to value creation

Intellectual
知的資本 Capital

Evolution of production system toachieve high product
高い商品魅力の実現に向けたattractiveness

Enhancing the technologicalinnovation capability to create
魅力的な商品・サービスを
compelling
products and services

する強固な財務基盤「組織」の成長支援

Net cash (excluding financial services)
ネットキャッシュ（金融事業を除く）

Number of associates
連結従業員数
Consolidated 

Number of product assembly sites
製造拠点数

R&D expenses
研究開発投資額(End of FY2023)

連結

74 拠点

(As of the end of FY2023)

電動化/ソフトウェア領域(FY2022FY2031)

2.7 tn YEN
2.7 兆円 *2023年3月31現在
Total
capital
資本合計

11.5
YEN
11.5tn兆円*2023年3月31現在(End of FY2023)

Non-consolidated

33,065 associates*1 Including US$2.75 billion Green Bond issue

研究開発費*2021年度～2030年度

GlobalSales Figures for FY2023
製品販売台数(10 thousand units)

2,808.9
2,808.9万台
累計販売台数Motorcycles
二輪

1,875.7
1,875.7万台*2 Capital investment for the introduction of
new models, expansion, rationalization,
renewal of production facilities, andexpansion of sales and R&D facilities, etc.

4,939億円*2023年3月31現在*新機種の投入に伴う投資や、生産設備の拡充、合理化および更新ならびに販売施設
や研究開発施設の拡充などへの設備投資

一人当たり年間研修時間

Approx. 5 tn YEN
約 兆円
Preparation
for new growth
新たな成長への仕込み(FY2023)
設備投資額

Training hours per person per year

18時間

Electrification / Software area

493.9 bn YEN

33,065名

Approx. 8 tn YEN

5

Capital investment*2

単独(Number of associates as of the end of FY2023)

生み出す技術創出力の強化

R&D
約 investments
兆円*2023年3月31現在(FY2023 in Japan)*2023年3月31現在(End
of FY2023)*グリーンポンド発行27.5億米ドル含む

8

197,039名*2023年3月31現在における就業人員

0.8 兆円
0.8 tn YEN
兆円

74 sites

197,039 associates

18 hours

有利子負債 （金融事業を除く）
Interest-bearing debt
(excluding financial services*1)

約生産体制の強化*2022年度 日本国内

1

Reduction of environmental
impact for coexistence and
自然との共存共栄に向けた
co-prosperity
with nature

環境負荷低減Deepen and expand relationships
ステークホルダーとの信頼・
oftrust and cooperation withstakeholders
協力関係の深化と拡大

Energy input
エネルギー投入量
DirectNumber of group companies
グループ会社数

19,300 TJ(including 313 consolidated subsidiaries and+社＝
69 affiliates社
accounted forunder the equity
連結子会社 持分法適用会社
method)(End of FY2023)

24,000TJ
間接24,000 TJ(FY2023)
資源投入量(End of FY2023)

382社

Brand value*3
ブランド価値

22,837 m USD

22,837 million USD*2022年度
Water
withdrawal(2022)

33,200 k m3

*2023年3月31現在

Best Global Brands 2022
Automotive*3

Brands 2022 Automotive
5th in the world

・取水量

33,20069*2023年3月31現在(FY2023)

Numberof domestic and overseas
国内外特許保有件数
patents

42,000313

Indirect

Resource input

More than 42,000件以上
patents*2023年3月31現在

382 companies

直接
19,300
TJ*2021年度～2030年度
Approx.
1 tn YEN(FY2022 - FY2031)

Social and Relationship
社会関係資本CapitalNaturalCapital
自然資本

5位

世界

千m2

(2022)*3 According to Interbrand research*2022年度*2022年度

Unit Sales in Major Markets
Japan

EuropeMotorcycles
Automobiles
Power
Products(million units)

Motorcycles

34.7

Automobiles

8.4

Power
Products

116.8

North America

24.6
55.0

Motorcycles

37.6

Automobiles(million units) (10 thousand units)(10 thousand units)

++

45.9
119.5

Power
Products

227.4(million units)(10 thousand units)

四輪
Automobiles

368.7万台
368.7
++

Power
Products
パワープロダクツ

564.5万台
564.5

Other

Asia
1,610.8

Motorcycles

174.4

Automobiles

Power
Products

140.8

Power
Products(million units)(10 thousand units)

159.7

Motorcycles

Automobiles(million units)

11.4
41.9
(10 thousand units)

Honda Report 2023
Honda Report 2023

3
3

Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

The dreams of each and every one of us working together havealways been the driving force of Honda.
We have different kinds of dreams, but by applying our originaltechnologies, ideas and design we take on challenges
continuously to realize mobility that enables our customers toenjoy life with more freedom, more convenience and more fun.
The future mobility Honda dreams of will create a joy andfreedom of mobility that enables people to transcend theconstraints of time and place, and augment their every possibility.
Such mobility will become the “power” for people who are trying
to advance toward their own dreams.
Dreams that will move even more people, until there is an endless
expanse of new dreams.
The Power of Dreams
Through the creation of mobility we dream of, Honda will
become “The Power of Dreams” of more and more people.
That is how we will move people and society forward.

Honda Report 2023

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Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

CEO Message

Honda R

The power of dreams, how we move you.
Unchanging Passion Since Our Founding
Director, President and Representative
Executive Officer

Toshihiro Mibe

Since its founding, Honda has been driven by its “dreams.” Above all

the environment and safety, Honda aspires to chart a new trajectory ofgrowth as a company.
Amidst this era of significant transformation, which we position as

else, we value original ideas, technologies and design, which derive

the “second founding” of Honda, we have made progress towardfrom our unwavering passion and out-of-the-box thinking, and Honda

various initiatives. However, in order for all of us at Honda to work

has grown by fearlessly taking on challenges to realize what wastogether cohesively toward a common purpose at an accelerated speed,

thought to be impossible. Through the creation of diverse forms of

we recognized the importance of re-clarifying “what we truly strive for.”mobility, Honda aims to become the “power” that supports people
around the world who are trying to do things based on their own
initiative, including those who take on new challenges and others who

Honda’s Future Vision

are trying to make changes to themselves and the society they live in. In

Honda Global Brand Slogan – The Power of Dreams – is a simple anddoing so, Honda has been providing value that contributes to themost straightforward expression of the fact that the dreams of eachadvancement of mobility and people’s daily lives.

and every one of us working together at Honda have always been the

As environmental awareness rises and digital technology rapidly

driving force of Honda. Driven by dreams, what is Honda striving toachieve? What value is Honda going to offer to its customers? How will

hundred-years transformation that is characterized by swift changes.

Honda create such value? Answers to these questions are the core of

However, even in this era of a major transformation, the long-standing

everything we do as a company, thus we decided to define what Honda

passion of Honda remains unchanged. Honda will strive to be atruly strives for and communicate it more clearly to both internal andcompany people and society want to exist into the future by becoming

external stakeholders.

the driving force for those who are determined to take new steps basedon their own initiative.
We believe that mobility is a fundamental human desire. Our

2023

advances, the automotive industry is undergoing a once-in-one-

In contemplating this, we revisited the essential value of every
mobility product and service Honda has offered to date. Consequently,
we arrived at the conclusion that there are two value propositions

relentless pursuit of advancing mobility, spanning automobiles,

Honda wants to continue offering – One is to enable people tomotorcycles, power products, aircraft and more, enhances the“transcend various constraints such as time and place,” and the other is“temporal and spatial value” of mobility, and expands people’s life’s

to enable people to “augment their abilities and possibilities.” Thepotential. When more people are “connected” through mobility, we canfuture mobility we dream of and a mobility society people desire lie

generate greater “power,” which leads us to the creation of a better

ahead of us as we continue to thoroughly pursue these valuesociety. We believe it is Honda’s mission to realize such a future.

propositions. Grounded in this notion, we expressed the value Honda

On another front, in order to contribute to society as a mobilityfocused company, we must sincerely address difficult challenges ofachieving “zero environmental impact” and “absolute safety.”
By realizing the future mobility Honda dreams of and a mobility
society people desire, while addressing societal values in the areas ofwill continue to offer to its customers with two key words: “Transcend”
and “Augment.”“Transcend” conveys the meaning of “go beyond the limits.”
Throughout our history, Honda has consistently offered the value ofincreased “convenience,” “freedom,” and “speed” via mobility. This value
Honda Report 2023

5

Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

CEO Message

can be interpreted as enabling people to transcend various constraints

and “Augment.” Such value we offer will move people, inspire people

Guided by these perspectives, we will comprehensively reassessthat interfere with their mobility.

and become the “power” to support people who take one step closer toevery element that shapes our corporate culture, including the decision-

their dreams. As the “power” of people who embarked on theirmaking process, approaches to our work and our personnel systems.

products and services that enable more efficient utilization of theEspecially, time is an absolute constraint for most people. Mobility

dream-filled journeys gains momentum and spreads to the people

Through such internal changes, we will strive to establish an

universally granted 24 hours, 365 days have immeasurable value.

around them, it will create new connections and realize an expanse oforganization capable of realizing “The Power of Dreams.”

Through the creation of diverse mobility products and services whichdreams throughout our society. Honda always believes in the power ofwill be combined to realize seamless mobility, and with our advancedsuch infinite dreams that people pursue all around the world, and wetechnologies such as automated driving technologies, Honda will create

want to be the “power” to help people realize their dreams.

the value of “transcending the constraints of time.”

With these aspirations for the future, we have added a new tagline

Toward the Realization of Dreams
My dream is to realize a world where mobility products bearing theIn addition, Honda will also pursue the creation of the value of– How we move you. – which follows the “The Power of Dreams” in our

Honda logos are traveling all around the world, on the ground, in the“transcending the constraints of place” – with our aircraft products

Global Brand Slogan. This tagline encapsulates the double meaning ofocean, in the skies and into outer space, and people are enjoying theincluding eVTOL, which will make “three-dimensional mobility”“moving people physically” as a mobility company and “moving

true freedom of mobility. I envision that Honda mobility products andavailable for people, through our challenges in the field of spacepeople’s hearts” through the value we provide.

services will create more time and space where people can enjoy

technology, and with our avatar robots that people can control while

We will continue our commitment to carry out our corporate

freedom, and such temporal and spatial value of our mobility willtraversing physical distances. Under the key word of “transcend,” we will

activities while striving to move people, inspire people, and spreadfurther unlock human potential, becoming the driving force tovigorously pursue various initiatives with an aim to provide customers

dreams throughout the world.

transform our society.

greater.” By controlling new mobility products at our will, we can travel

Toward the Realization of the Value
Proposition of Honda

which will be the starting point of our creativity. By leading ourfaster and farther. We can reach places that were previously beyond

At Honda, we believe that every associate should be an individual who isvalue proposition of Honda – Transcending and Augmenting – we will

human reach. We can effortlessly move heavy objects, and we can also

driven by their intrinsic motivation and wants to realize their own dreams

offer attractive products and services unique to Honda. Leading thisperform intricate tasks swiftly. If people become capable of doingby demonstrating their abilities, individuality and creativity to the fullest.

process is the role I assume as the Global CEO of Honda. In today’ssomething that they could not do before through the use of various

As I mentioned earlier, the wellspring of the two value propositions wesociety, where people’s values are increasingly diverse, this challenge

mobility products and services Honda offers, we can say that we provide

aim to offer is “the power of dreams” and the “creativity” of each and every

will undoubtedly be formidable. However, I believe that the greater thethe value of “augmenting people’s possibilities.” We believe that “whatassociate. When the strong individualities of Honda associates collide, andchallenge, the more worthwhile it is for us to take on.

people can do” is infinitely augmentable by enhancing people’s physicaltheir diverse knowledge and dreams interact with each other, they evolveand cognitive capabilities and optimizing them for various purposes

into greater knowledge and more profound dreams. This synthesis

challenge will continue. Please keep your expectations high for thethrough the use of a variety of mobility products and services which

manifests as “creation,” generating value. Pursuing this vision, we will seek

dream-inspiring mobility products and services Honda will create for theleverage digital technology. With our original ideas and technologies,

to establish an environment where everyone who works at Honda can

joy and freedom of mobility.

Honda will strive to enable people around the world to augment theirfully demonstrate their abilities.

with the significant value of transcending the constraints of time andplace.
The other key word, “Augment,” signifies “making something

possibilities.
Furthermore, another key word of our Global Brand Slogan is

To this end, we are asking the following question to ourselves.
• Can each of us find meaning in our work and be passionate about our“Create,” which conveys the message that it is the creativity of each andown work?

every one of us at Honda that becomes the key to creating the value• Are we clear about what we want to do, our dreams, our aspirations

proposition of Honda. With the key word of “Create,” all of us who workand our future goals? Are we fully committed to pursuing them?

together at Honda will set high goals and take on challenges without• Are there work environments and support systems which encourage

being afraid of changes, to “create” something which will generate new

us to take on such challenges?

value for our customers.

• At every workplace, are we pursuing the very essence of things,

Our creative power fueled by our dreams will generate the value
proposition of Honda represented by the two key words: “Transcend”

having candid and unreserved discussions involving diverse individuals
and conducting collaborative knowledge creation?

Each and every one of us working at Honda has a variety of dreams,
creativity in the right direction, we will maximize the limitless “power ofdreams.” By creating a link between such power of dreams and the

Toward a future filled with dreams and hopes, our journey ofValueCreation
CreationStory
Story
Value

Business Strategy
Corporate
Strategy

KeyThemes
Themes55Key

Governance
Governance

RelatedData
Data
RelatedTo be a company people and society want to exist

Honda’s Vision

Value Creation Process

We create the joy and freedom of mobility and

TRANSCEND

become the power that supports individuals
who start moving toward their dreams

To enable people totranscend the various
constraints of time and place
Carbon Neutrality of Power Units

Internet of Things(IoT)/Connected

Five Key Factors of
Our Initial Focus

The power of dreams, how we move you.

Energy Management
SystemResource Circulation
Recognition of theExternal
Environment

How we move you.

Automated Driving (AD)/Advanced Driver-Assistance
System (ADAS)

Crea

n

of

So

CREATE

l
an

Brand
Value
EnhancementciaCreation of
Innovative
Technologies

tiodResource Input

DREAMS

Financial Capital
Human Capital
Manufacturing CapitalIntellectual Capital
Natural CapitalSocial and Relationship Capital

Driven by the power of each individual’s dreams.

c value

ZeroTraﬃc
Collision

omi

Honda
Philosophy

Human
CapitalManagementon

Acceleration/
Intensification ofEnvironmental
ChangeKey Themes

Ec

Zero
Environmental
ImpactTo realize the mobility
Honda dreams of with thecreativity as the key

AUGMENTTo augment
people’s possibilities

Honda Report 2023

7

Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

Corporate Strategy
Value Creation Story and Growth Strategy(1) Defining Materiality and Company-Wide Objectives for the Achievement of “Vision” and“Value Proposition”

We aim to expand our economic
value by pursuing social value
and chart a new growthtrajectory as a company.

In order to create the “joy and freedom of mobility” that we aspire to, it is essential for the entire organization toclearly define key challenges and targets to be prioritized. Each individual working at Honda should use these as
guiding principles, driving together with full force towards the same direction. Taking this perspective into
account, and acknowledging the swift changes in the environment, along with the enhanced clarity of our“vision” and “value proposition” achieved through the redefinition of our global brand slogan, we have opted toreassess the most critical challenges that we had previously identified, grounding them in the framework of themateriality matrix. We will strive to enhance the effectiveness and speed of initiatives by reorganizing theimportant themes, materiality, and associated goals that we will particularly focus on in the future.
We have selected the new key themes by systematically identifying and prioritizing societal issues extracted
comprehensively from the perspective of sustainability, aligning them with Honda’s direction. Specifically, in
addition to “environment” and “safety” which have long been highlighted as important themes in ourmanagement, we have chosen “people” and “technology,” which drive Honda’s growth, as well as “brand” thatencompasses all corporate activities — our five non-financial indicators as important themes. We align these
aspects with our financial strategy to effectively generate both social and economic value. Furthermore, within
the realm of non-financial indicators, we have defined the materiality that should be addressed for each theme.
This approach helps us clarify the areas we need to focus on to achieve our vision.

Director
Executive Vice President andRepresentative Executive Officer
Chief Operating Officer

Shinji Aoyama

To ensure we achieve our materiality, it is crucial to execute strategic planning and resource allocation with amedium to long-term perspective, even within a rapidly changing and highly uncertain environment, without
being overly tied to short-term fluctuations. With this in mind, we have decided to discontinue the previous
practice of setting three-year midterm goals and instead establish achievement targets on a 5-year and 10-year
horizon. We will clearly define key goal indicators (KGIs) and key performance indicators (KPIs) for the milestones
to be reached in each phase of 2025 and 2030, reinforcing management governance by regularly monitoring

Toward the Embodiment of Value Creation

Honda aims to embody the values of “Transcend” and “Augment,” achieving “zero environmental impact”
and “absolute safety,” thereby creating the joy and freedom of mobility in the era of electrification. Honda
seeks to continuously be the “power” that supports people around the world who are trying to do things
based on their own initiative.
While we recognize that achieving environmental and safety objectives is our duty as a mobility
company, we must consciously sidestep any notion of trade-off where our pursuit of environmental andsafety initiatives compromises economic value. Instead, we are committed to intensifying our endeavors
guided by the principle of trade-on, aiming to enhance economic value through the pursuit of social value.
This strategy paves the way for a fresh path of growth for the company, highlighting the importance of
pursuing both societal and economic value.

the progress of initiatives by the leadership team. This approach will enhance the effectiveness of initiatives andfacilitate their rapid implementation towards the achievement of materiality.
Materiality Assessment Process
STEP 1

STEP 2

STEP 3

STEP 4Comprehensive extractionof social issues from asustainability standpoint

Prioritization and selectionof important themes
based on Honda’s vision

Identification ofmateriality, management
indicators and objectives
for each important theme

Setting initiatives andactions toward achieving
materiality

Based on SDGs, disclosure
standards like GRI
standards and SASB, as
well as external evaluation
criteria such as S&P Global
CSA, social issues arecomprehensively
extracted.

We prioritize and selectareas to focus on, inalignment with Honda’s
vision, “to create the joy
and freedom of mobility,“
among the social issues
extracted in Step 1.

For each important theme,
we define specificchallenges to focus on as
materiality, and set
indicators and target values
to measure theirachievement.

We formulate specificinitiatives and actions
toward achieving thetarget values set for eachmateriality.

Honda Report 2023

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Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

Corporate Strategy

Important Themes

Financial
Indicator

Materiality

Economic Value
Enhancement• Improvement of capital efficiency• Sustainable growth of cash flows

Brand Value
Enhancement• Enhancement of consistent brandmanagement

Realization of Zero
Environmental
Impact Society• Challenging climate change issues• Challenging energy-related issues• Efficient utilization of resources• Biodiversity conservation

ROIC
Consolidated
ROS

Realization of Zero
Traffic Collision
Society•D evelopment of technology to capture andcomplement human intention• Safety education and awareness activities• Building a transportation ecosystem

Evolution of
Human CapitalManagement• Activating associates’ intrinsic motivations
and fostering the integration of diverse
individuals• Ensuring both quantitative and qualitative
sufficiency of human resources in priority
business areas

Creation of
Innovative
Technologies• Establishing competitive advantage infocus areas

2025

2030

-

10% orhigher7% orhigher-Brand Value*2(Interbrand research)

Consolidated(Unpublished)

Reduction rate of CO2 emissions
from corporate activities

Consolidated-

Total CO2 emissions from products

Consolidated/Business(Unpublished)

Waste reduction rate
Water intake reduction rate

NonFinancial
Indicator

TargetManagement Indicators (KGI*1)

Traffic fatalities
involving automobiles
in Japan and the United States

Consolidated(compared to
BAU*3)

Consolidated

Associate engagement score

Ability to create intellectual
property

Consolidated

Consolidated

We have established ROIC target for 2030, complementing thepreviously disclosed ROS target for 2025. By fortifying our businessstructure, we intend to boost cash generation capabilities. Our objective ➡p.12
is to uphold an optimal equilibrium between strategic resource
Financial Strategy
allocation for transformation and shareholder returns, with the aim ofachieving sustainable growth and enhanced capital efficiency.

By embodying Honda’s brand value through high-quality products
and services, and through consistent brand management in all
corporate activities, we aim to enhance brand value.

➡p.55
Brand Value
Enhancement｜
Enhancement ofConsistent Brand
Management

To remain a company people and society want to exist globally, weare committed to thorough efforts in environmental preservation.
We aim for zero environmental impact in the lifecycle by 2050
through initiatives such as “carbon neutrality,” “clean energy” and“resource circulation” through electrification of the products, etc.

➡p.27
To Realize a Zero
Environmental Impact
Society｜
Environmental Strategy

With the philosophy of pursuing the safety of all people in a mobility
society, we aim to achieve zero traffic collision fatalities involving
Honda’s motorcycles and automobiles worldwide by 2050 throughthe evolution of advanced safety technology and expanded safety
education.

➡p.37
To Realize a Zero Traffic
Collision Society｜Safety
Strategy

Under the belief that the integration of diverse individuals who takeon challenges driven by their “dreams” leads to the creation of thevalue Honda aims to provide, we promote various initiatives.
Additionally, we strive to ensure that human rights are not violated
in any of our corporate activities.

➡p.42
The Evolution of Human
Capital Management｜
Human Capital Strategy

46%

-

14.5%

-

14.5%

(Unpublished)

50% orhigherApproach and Direction of Efforts

60% orhigher(Percentage of positive
responses)(Unpublished)

We define five key factors to focus on at present for the evolution ofmobility and promote technological development.

➡p.8
Corporate Strategy➡p.51
Creation of Innovative
Technologies｜Challenges
in New Fields*1 KGI: Key Goal Indicators overseen by the Board of Directors
KPIs overseen by the Executive Council are detailed in each strategy page, etc.
*2 Brand Value: The monetized value of a brand as disclosed by Interbrand*3 BAU: Business As Usual based on production plans

Honda Report 2023

9

Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

Corporate Strategy(2) Ongoing Focus on the “Five Key Factors”

Toward Building a Robust Value Chain with Honda as the Hubas the technological areas to focus on for the immediate future.

software, the nature of the value chain surrounding mobility is undergoing significant changes. Particularly in

In our important theme of “Creating Innovative Technologies,” we have defined the following five key factors

With the global rise in environmental awareness, the electrification of power units and the advancement of
the realm of EVs (Electric Vehicles), it’s imperative to promptly address novel challenges, such as ensuring stable

・Carbon neutrality of power units (electrification/hydrogen)production and procurement of batteries, securing essential minerals used as raw materials, cost reduction and・Resource circulation

the technological development of next-generation batteries. Moreover, initiatives centered on resource

・Energy management system

circulation such as the use of sustainable materials are crucial. These not only ensure the steady supply of vital

・AD/ADAS*1

minerals but also lead to reductions in CO2 emissions. We recognize that the importance of such endeavors will

・IoT/Connected

only continue to grow in the future.

By pursuing advanced and innovative technologies in each area, we aim to enhance the added value of

while keeping Honda’s proprietary technology and know-how at the core, we believe it’s essential to form amobility. Furthermore, through the synergy of the technologies developed in each domain, we strive to provide

robust value chain through collaborations with other companies that possess strengths distinct from Honda’s.

continuous value tailored to the mobility life of each individual customer.*2

This approach can generate synergistic benefits and further accelerate our efforts towards new value creation.

裏表紙

In an era where the surrounding business environment is rapidly diversifying and becoming more complex,*1 AD: Automated Driving, ADAS: Advanced Driver Assistance Systems*2 Please refer to Business Strategy (➡p.15-) and 5 Key Themes (➡p.27-) for an overview of initiatives in each area.

partnerships, we aim to build a sustainable and competitive business foundation.

Mobility Honda Strives For
Zero traﬃc collision fatalities

Carbon neutralityof power units

Connected

We have already been advancing collaborations in areas like battery production, resource procurement,
hydrogen projects and energy services. Moving forward, by actively expanding even more strategic

IoT/
Connected

AD/
ADAS

Key
Factors

Zero environmental impact

Strong Value Chain with Honda as a Hub (Battery Area)
Aim to build a sustainable business foundation and strengthen competitiveness through strategic partnerships

Resource
circulation

Procurement

EnergyJoint venture for production

Energymanagement

Materials

Joint venture for development
Strategic investment/Joint development

Honda will continuously provide value to our customers by giving attentive consideration
to the mobility needs in the lives of each individual customer.

Development / Production

Resources

RecycleEnergy service

Honda Report 2023

10

Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

Corporate Strategy

Striving for Enhanced Lifetime Value

With the rapid advancements in electrification and digitization, there’s a shifting paradigm in the value ofmobility. Traditionally, under the “sell off the hardware” business model, a new vehicle’s value was at its peak at
the time of purchase, declining over the years. However, as the demand for software areas, represented byautomated driving, driver safety assistance systems and digital services, continues to grow, there’s an emerging

We aim for corporate management

perspective that the value of mobility can be enhanced post-purchase through software updates.

centered on “dreams” and “speed” byThrough IoT and connected technologies, as mobility becomes interconnected with other mobility

advancing management operations.

solutions and transportation infrastructure, it becomes possible not only to prevent accidents before they occur
but also to provide personalized, up-to-date digital services. This means that future mobility will be able to“grow alongside the customer.”
Furthermore, mobility is expected to generate new value beyond merely being a means of transportation,
serving as “energy storage.” Initiatives in the energy services sector, utilizing the power supply capabilities ofelectric mobility through home charging and public charging, will ensure that even when not in motion,
mobility continues to evolve into an entity that benefits people in various aspects of their lives.
Through the fusion of hardware and software, we aim to continually deliver value to our customers over an
extended lifecycle and grow alongside them as partners. Instead of focusing solely on “mobility,” we arecommitted to accompanying each individual in various aspects of their lives, providing personalized and diverse
values consistently. By upholding these two principles, we strive to enhance the lifetime value from a long-term(3) Advanced Management Operations to Support Value Creation

As the surrounding environment undergoes significant changes, the key challenges in our management
strategy have also become increasingly sophisticated and complex. While Honda is committed to focusing

perspective.

on the aforementioned five crucial themes to drive the evolution of mobility and the transformation of our

Evolution of Mobility through Digitalization

business, it is essential to further advance our management operations themselves to dynamically andデジタルによるモビリティの進化

swiftly promote large-scale initiatives towards this significant transformation. From this perspective, we’ve

Evolution with a Focus on the OMO (Online Merges with Oﬄine) World

decided to drive the company-wide key challenges set at the beginning of the term through a “crossdepartmental task force” led directly by the management members. We’ve established a system under
direct management control that allows for a swift PDCA (Plan-Do-Check-Act) cycle.

Excellent User Experience
Anchored in Digital

Delivering Diverse Valueby Connecting with
Various Things andMatters

1st

2nd

clarifying accountability and enabling swift execution. In addition, in line with the previously mentioned goal of

The products serve as a terminal that enables the continuity of UX*1,
which means that even if the vehicles are changed, the UX remains to exist.

constructing a robust value chain with Honda as the hub, we are steadily advancing the establishment of an

Evolution of Hardware

Evolution of Services

SoftwareUpdatevia OTA*2

Providing
Products
and Services toEnhance Customer
Experience

CONNECTED

optimize our management resources as a whole. Furthermore, we have abolished the operating officer system,
consolidating the roles of officers in charge of each business and function into executive officers, thereby

3rdConnected/Behavioral Data Analysis

In addition to establishing the “Electrification Business Development Operations” this fiscal year, we havealso significantly reorganized the corporate functions and regional operations. This reorganization aims to

V2X※3

Mobility
Serviceinternal system to strengthen alliances that supports smooth collaboration with other companies.
For Honda to remain a company people and society want to exist, we believe that two elements areparamount: the diverse “dreams” rooted in individual intrinsic motivations, and the “speed” to manifest

Connected
Service*1 UX: User Experience*2 OTA: Over The Air, technology to update a vehicle’s software through wireless communication*3 V2X: Vehicle to X, technology for communication and coordination between vehicles and various objects

them through technology and ideas. We aim to magnify the power of each individual’s dream and swiftlytranslate it into value. With this vision in mind, we are committed to continually elevating our management
operations to greater heights.

Honda Report 2023

11

Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

Financial Strategy
Through strategic resource
allocation in accordance withthe business transformation
phase, we aim to realizeenhanced corporate value.

Initiatives for Increasing Corporate Value
Increasing Corporate Value
Sustainable growth of cash flows and improved capital efficiency
through the utilization of financial and non-financial capital① Strategic resource allocation according to the business transformation phase③ Dialogue

Concrete and accelerated transformation through goal-setting and strategic resource
allocation for each phase of business transformation
Resource allocation according to the business transformation phase

Executive Officer
Chief Financial Officer
Chief Officer, Corporate
Management Operations

Eiji Fujimura

Capital generation• Improved operating cash

Resource investment• T ransformation of the

Shareholder returns• Stable and consistent• S trengthened funding/• Investment decisions• Flexible share buybackflowbusiness portfolio

capital management

based on capital costs• T ax management

Initiatives for Increasing Corporate Value

To support this transformation, the entire Honda company is united in our effort to “strengthen our businessconstitution” and we have been implementing measures aimed at improving our profit structure.
In FY2023, due to worsening business conditions, including the impact of cost increases fromsemiconductor shortages and inflation, as well as higher quality related expenses, company-wide operating

Enhancingquality andtransparency ofmanagement
through active
dialogue

dividends② Strengthening governance and risk management
Strengthening management by considering capital costs
Management decisions taking into account the diversification of uncertainties and risks
Strengthening accounting/finance functions and renewal of the processes

profit margin (ROS) was an austere 4.6%. However, in motorcycle business operations, ROS reached 16.8%,
an all-time record high. In automobile business operations, the break-even point based on production
capacity improved significantly from approximately 90% to roughly 80%, contributing to revenue protection
when production is reduced. Through such efforts in each business segment, we are confident that we aremaking steady progress in improving our profit structure and are aiming to achieve a company-wide ROS
target of 7% or more by FY2026. In terms of financial foundation, continuing from FY2022, we generated
free cash flow at the level of 700 billion yen. This not only secured funds to support the transformation, butalso enabled us to declare an annual dividend of 120 yen. Furthermore, exercising a flexible capital policy, we
conducted two share buybacks totaling 170 billion yen during the year.
Given the significant changes in the business environment as well as an increase in the types of risks,
including geopolitical risks, it has become crucial to leverage both financial and non-financial capital to attainsustainable growth of cash flows and enhance capital efficiency, thereby boosting corporate value. As a Chief
Financial Officer, I believe it is crucial to: 1) clearly define goals for each phase of business transformation andexecute strategic resource allocation, 2) ensure reliable execution, strengthen governance and conduct
appropriate risk management, including the strengthening of capital cost-conscious management and 3)
engage in active dialogue with stakeholders to enhance the quality and transparency of management.
By meticulously executing these missions one by one, we will realize the transformation in what we call the

Performance Trend■ Operating profit (left axis) ■ Free cash flow (excluding financial business) (left axis) ■ Shareholder returns (left axis)■ Share buyback (left axis) ■ ROS (right axis)(Billions of Yen)

(%)

1,000

10.0
871.2

800
600

613.5
4.6

400
200
0

780.7

726.3

257.6
62.1

2019

633.6
470.6

660.2

678.1
6.0

5.0

2020

303.8
189.9

2021

8.0

5.5

6.0

4.6

4.2
292.0
96.2

7.0 orhigher

685.8

372.1
267.0
60.7

2022

4.0

170.0

2023

2.0

2024

(Forecast)

2026(Target)(FY)

0company’s second founding and Honda will continue to be a company that our shareholders want to exist.
Honda Report 2023

12

Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

Financial Strategy

Initiatives for Increasing Corporate Value through Phase-specificGoals and Strategic Resource Allocation

To establish cash generation capabilities through new value creation, we will categorize our management
plan into phases of transformation and set specific quantitative goals to drive our initiatives forward. While
the PBR (Price-to-Book Ratio) has fallen below 1x, it is crucial to establish a capital return that exceeds thecapital cost (ROIC) at an early stage. Additionally, as we aim for “a continual value provision that aligns withthe mobility needs of each individual customer’s life,” we believe that leveraging both financial and nonfinancial resources, and ensuring sustained growth of cash flows over the long term, are crucial.

Up to 2025: “Strengthening Business Resilience of ICE*1 Product Operations and Investment inEVs” Phase

2030s: “Growth of EV Business and Creation of New Value” Phase

We will establish the company’s second founding by expanding the growth of EV business and creating
new value. We set the ROS target for the EV business at 10% or higher and strive to achieve a sales ratio of
100% for EV / FCV by 2040, ensuring the sustainable growth of cash flow. To realize the creation of newvalue, we will stably allocate an annual research budget of around 100 billion yen to fundamental researchareas, focusing on carbon-neutral technologies such as the application of intelligence technologies,
advancement of battery-related technologies, utilization of hydrogen, and sustainable materials.
Goals for Each Phase of Business Transformation
2025

2030

Moving towards 2025, we will sequentially introduce EVs tailored to each region. However, in the phase up

Growth of EV business and creation of
new value

to 2025, ICE vehicles will continue to be the core of our sales. From a financial standpoint, as we allocate
resources to EVs in order to transform our business portfolio, we will concurrently concentrate on enhancing
the business structure of ICE vehicles, with the objective of achieving a company-wide Return on Sales (ROS)

Strengthening the business resilience of
ICE vehicles operations and allocationof resources to EVs

Transition from ICE vehicles to EVs

5% or higher

of 7% or higher. Strengthening the profitability of our automobile operations is particularly challenging, but
we will build upon the business structure we’ve developed through initiatives like the introduction of Honda
Architecture*2, consolidated planning, reducing the number of derivatives of our global models and

ROIC of
10% orhigher

ROS of 7%
or higher

optimizing production capacity. We will also work on strengthening our supply chain, including securing astable supply of semiconductors, to recover our automobile sales volume and steadily enhance profitability.

10% or higher
Profitability(ROS) of EV
business
operations

Having built a robust financial foundation through the enhancement of a solid business structure with these
initiatives, we will steadily allocate resources to EVs. Furthermore, by achieving a company-wide ROS of 7%
or higher, we will realize an ROIC that exceeds capital costs.
*1 ICE: Internal Combustion Engine*2 Honda Architecture: System architecture connecting computers, sensors, actuators and other components in automobiles

Up to 2030: “Transition from ICE Vehicles to EVs” Phase
Building a Production System for Over 2 Million EVs Annually on a Global Scale

In the period leading up to 2030, we will intensify the allocation of resources to expedite the growth of EV businessand attain self-sufficiency in the EV business. By 2030, our objective is to establish a global production capacity
exceeding 2 million EVs, while striving for an EV/FCV sales ratio of 40% in developed countries. We will expedite

Strategic Resource Allocation
Accelerated resource
investment for EV growth
ICE Vehicles
Electrification/
SoftwareResource
allocation for
EVs

New Fields

Steady investment for new value creation

Shareholder
Returns

Stable and continuous dividends + Flexible share buyback

strategic investments that foster the growth of EV business, including the advancement of next-generation batteries
like semi-solid-state batteries and all-solid-state batteries. We will also bolster the EV production system through thetransformation of our global production system and develop Honda’s distinctive vehicle operating system (OS),which facilitates the post-sale evolution of vehicle features and services post-vehicle sales. Furthermore, we will
broaden our range of EV offerings, primarily in both motorcycles and automobiles, while elevating market

2021-2025

2026-2030

2031-

competitiveness. While there might be an impact from temporary upfront investments, our goal is to bolster the
cash generation capability of our ICE (Internal Combustion Engine) business, allocate resources to support
transformation, sustain a return on invested capital (ROIC) surpassing the cost of capital and aim for an ROS (Returnon Sales) exceeding 5% for the EV segment, along with a company-wide ROIC surpassing 10% by 2030.

Honda Report 2023

13

Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

Financial Strategy

Returning Profits to Our Shareholders

conducted through various events and individual meetings. Through these dialogues, our management

foremost management priorities. This determination is made by factoring in internal reserves intended for

feedback from stakeholders as highly valuable and will integrate it into our management approach, thus

Concerning the distribution of our results, we regard returning profits to our shareholders as one of the
future growth and the overall performance of the consolidated business, all of which are assessed from along-term standpoint. Regarding dividends, using a consolidated payout ratio of 30% as a reference,
we are committed to achieving steady and consistent dividend payments, capitalizing on Honda’s
inherent strengths in generating cash while accelerating resource allocation for transformation. For
FY2024, we intend to raise the dividend to an unprecedented level of 150 yen*1. Furthermore, on May 11,2023, our board of directors approved a share buyback program amounting to 200 billion yen. In line with
our goal of enhancing capital efficiency and implementing flexible capital policy, we will judiciously
proceed with the repurchase of our own shares.

team will gain direct insights into the expectations and interests of the capital markets. We consider thiscontributing to a further augmentation of corporate value.
For specific information regarding our dialogue achievements in FY2023 and the ensuing feedback
within the company, we invite you to visit our official website (https://global.honda/en/investors/policy/
governance.html).
We appreciate your ongoing support and look forward to your anticipation of the continuous
enhancement of Honda’s corporate value.
ROIC Tree*1 On August 9, 2023, during a board of directors meeting, a resolution was passed to execute a stock split at a ratio of 3
shares for every 1 share, with September 30, 2023, as the designated record date. Following this stock split, adjustments
were made to the dividend forecast. However, the annual dividend forecast of 150 yen, as announced on May 11, 2023,
remains unchanged based on the pre-stock split standard.

Improvement of
profitattributable tothe owners of
the parent
company

Strengthening Governance and Risk Management

ICE Vehicles

BEV (Battery EV)

Increase in
marginal
profitExpansion of sales
through strengthening
the supply chain,including stableprocurement ofsemiconductors

UX evolution toaccommodate
diversification of values
Offering a new brand value
through the integration ofsoftware and hardware

Control of
fixed costs

Foundation of businessconstitution through initiatives
such as Honda Architecture,
consolidated planning,
reduction of global model
derivatives and optimizationof production capacity

Reform of the production
system to “State-of-theArt BEV Manufacturing
Facility”

Improvement of equitymethod investment gains

Maximization of profit
through the optimal
utilization of existing assets

Realization of joint
venture alliance synergy

Increase inoperatingprofitBusiness
ROIC

In an era of significant transformation, our objective is to enhance governance and infuse management
practices with a heightened awareness of capital costs. This approach will empower us to respond flexibly
and effectively to evolving environmental dynamics, ultimately elevating our corporate value. We will
employ the ROIC framework to seamlessly connect on-ground initiatives with company-wide objectives.
Our efforts will focus on optimizing profits, the numerator in ROIC, while enhancing the denominator—
deployed capital*2—through prudent utilization of retained assets and strategic investment discernment,

thus enhancing capital efficiency. Concerning our financial services business, where funding predominantly

ROIC*3

Optimization of tax payments

Proper tax management

relies on liabilities, we will apply the ROE metric to strike a balance between profitability and stability. Thisbalanced approach will maximize capital efficiency and lend support to our transformative endeavors.

Increase inturnover of
deployed capital*2

When it comes to resource allocation, given the substantial uncertainties stemming from economic
trends, shifts in environmental regulations and technological breakthroughs, the necessity of substantial
investments for transformation becomes evident. As a risk management strategy, we are committed to
identifying decision triggers and making investment choices while considering capital costs.

Active Dialogue with Stakeholders

We firmly believe that increasing corporate value goes beyond merely outlining a roadmap for sustainable
cash flow growth and improved capital efficiency. It also entails ensuring that Honda’s prospects are wellcomprehended in the capital markets.

Financial
ROE

Improvement of
ROA

Improvement of working
capital turnover

Improvement of fixed asset
turnoverFinancial Leverage
Effective use and proper
management of on-hand funds

Optimization of inventory
assetsOptimization of existing
assetsMinimization of
investments

Optimization of working
capital in the new value
chain
Investment decisions
conscious of capital costs

Strengthening of global cash management*2 Deployed capital: Shareholders’ equity attributable to the company’s shareholders + Interest-bearing liabilities (excluding thosefrom the financial business sector). Deployed capital is calculated using the average of the beginning and end of the period.
*3 ROIC: Net income attributable to the parent company owners + Interest expenses (excluding financial businesses) /Deployed Capital

To achieve this, a fundamental requirement is that our stakeholders, including shareholders andinvestors, have an accurate understanding and a positive regard for our management direction. Taking
proactive measures, our management team will engage in more active dialogues than ever before,
Honda Report 2023

14

Value Creation Story

Electrification
Business Strategy

Strengthening
Competitiveness inElectrification
Technologies at Honda

Business
Business Strategy
Strategy

55 Key Themes
ThemesGovernance

Related Data

We are vigorously promoting electrification in all areas of motorcycle, automobile and power products. In
pursuit of the early independence of our electrification business, we have established a specialized organization
for swift decision-making in 2023. With this organizational structure at its core, we will further enhance Honda’s
unique appeal, cultivated through the pursuit of advanced and innovative technologies in the “Five Key Factors.”
By providing competitive products and services that realize “transcend various constraints associated withmobility and the augment people’s possibilities,” we aim to further enrich the lives of our customers.

Honda will Continue to Promote Electrification through Unique Products and Services
We have always embodied the “joy of driving” in all categories of automobiles,

Honda strives to meet diverse customer needs as the world’s top manufacturer

from family cars to sports cars. We’ve refined our technology by serving as aof motorcycles in a carbon-neutral society that emphasizes electrification. Our“driving laboratory” and by participating in various races, including F1. As a result,mission is to deliver the joy of mobility to global customers who require versatility,

we have honed our technologies and fostered a corporate culture that prioritizes

from daily commuting to long-range touring and beyond. We aim to address

uncompromised driving and meets challenges head-on. Electrification is not a loss

their needs with innovative ideas and technologies. As we navigate the era ofof the identity of “Honda, the engine specialist,” but rather a “steppingstone” thatelectrification, Honda is actively addressing technological challenges, ensuring thatelevates the joy of controlling at will, a pleasure we have built up thus far, to abatteries and charging methods will cater to all user profiles. To illustrate, Honda

higher level. To deliver the joy that comes from transcending constraints of

has introduced the EM1 e: electric scooter in Japan, equipped with the Honda

movement and the augmenting people’s possibilities that beyond electrification,

Mobile Power Pack e: portable and swappable battery. This model is set to debut inHonda will never stop challenging ourselves.

Europe and Indonesia by the end of FY2024.

In the lineup, we will introduce BEVs in succession, that is, tailored to each

Honda is actively developing plug-in rechargeable models. Furthermore, we

regional characteristics beginning in 2024. In North America, we have the Honda

aim to harness digital technology to strengthen our bond with customers,

Prologue and Acura ZDX, developed in collaboration with General Motors (GM); in

enhancing the convenience and joy that motorcycles bring to their lives.

China, the e:NS2, e:NP2 and mass-production models based on the e:N SUV 序

In the power products sector, we’ve consistently delivered products thatconcept; and in Japan, a commercial-use mini-EV model based on the N-VAN. In

enhance the work and lives of individuals globally, echoing our founder’s vision of

the Asian region, Honda will lead the electrification of emerging markets,

deriving joy from aiding others. As we look to the future, we will our commitment

launching two compact EVs, including an SUV model, in 2026. Furthermore, we willremains steadfast: to provide a diverse range of products that drive people while

efficiently and vigorously promote electrification on a global scale, launching aembracing the electrification challenge in domains like small-scale construction

global model founded on our original platform beyond 2025. We will continue toequipment, gardening and marine equipment, all in pursuit of a carbon-neutral

diversify our offerings, introducing flagship and sports models and producing

society. Additionally, we are exploring new value avenues within Honda’s

highly competitive BEVs from our “state-of-the-art BEV manufacturing facility.”electrification business strategy, including the automation technology for work

Moreover, our vision extends beyond the traditional hardware-centric value ofequipment.

automobiles. We aim to introduce new and unique value through digital services,

Please look forward to the next generation of Honda, which will lead theenergy solutions and enhanced car interiors, leveraging advanced software

industry and manufacturing not by simply following big changes in the market,

technology.

but by initiating transformations on its own in this period of great electrification.

To deliver these attractive products, Honda will enhance the “resonance
Senior Managing
Executive Officer
Chief Officer, Electrification
Business Development
Operations

Katsushi Inoue

between strong personalities,” a core element of the Honda’s DNA. And we will
also optimize our value chain, spanning development, production, sales andservice, through “individual challenges and co-creation activities.”
Honda Report 2023

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Value Creation Story

Business
Business Strategy
Strategy

55 Key Themes
ThemesGovernance

Related Data

Automobile Business Strategy
Business Overview/ Revenue Highlights

Electrification Business Strategy“Let’s change the landscape of the automobile industry.” In 1963, inspired by this rallying cry, Honda’s

The advancement of electric mobility is an initiative that stands as the cornerstone of our mission toautomobile business began and has since expanded to offer products to customers in diverse regions

achieve a society where “all individuals can feel the joy and freedom of mobility.” As we amplify ourworldwide. Evolving the cultivated “joy of driving” that Honda embodies, aligning with the changing times

endeavors to realize “zero environmental impact and zero traffic collision fatalities”, addressing mobility-

and relentlessly pursuing the development of innovative technologies within the “Five Key Factors,” ourrelated challenges, our commitment to the “Joy of Driving” – a principle Honda has cherished since its

goal is to achieve the realization of value in delivering “the transcendence of various constraints offounding – remains unwavering. Moreover, we aim to offer every customer “Surprise, Excitement andmovement and the augmentation of people’s possibilities.”

Trust” by introducing fresh mobility experiences. It is sustained by the “Joy of Using” and the “Joy of

Delivering Attractive Products and Services to the World

Direction of the Electrification Business Strategy

Connection,” facilitated by connectivity and intelligence that align with the ever-evolving.
Revenue Highlights of the Automobile Business■■ Sales (left axis) ■■ Operating profit (left axis) ■■ Unit sales (right axis)(¥100 million)

6,000

Medium- to Long-term Targets

5,000

By 2030, our goal is to set up a global BEV production system that produces over 2 million units annually.

(thousands of units)

120,000

112,877

100,000

5,323

80,000101,946
4,790

107,81787,793
4,546

93,605
4,074

4,350

4,000

3,687

By 2040, we aim for a sales ratio where 100% of our global sales comprise EVs and FCVs.

3,000

4,000
2,000

2,096

1,533

2,362
902

-166

0
2019

2020

2021

2022

2023

0
2024

(Forecast)(FY)

Recognition of the External Environment / Key Challenges
In the BEV market, it’s not just traditional automobile companies making a mark. Various manufacturers
from different industries are now introducing a wide variety of BEVs, ranging from budget-friendly to
premium models. As customer needs and values diversify, it’s becoming increasingly challenging for Honda
to differentiate its BEVs by traditional strengths like engine performance and other.
This highlights an urgent need for Honda to carve out a distinct identity in the BEV market, rooted in its
unique value and UX.
With electrification on the rise, there’s an anticipated surge in demand for minerals like nickel, lithiumand cobalt, all essential for battery production. This has raised concerns about potential skyrocketing
battery prices due to possible shortages in these raw materials. Honda is taking proactive measures against
such risks, especially in parts procurement, including batteries. Our focus is on promoting recycling, reusingmaterials and incorporating sustainable materials, aligning with the vision of a resource circulation.
Moreover, we recognize the imperative to cultivate a flexible and resilient organizational structure formore rapid decision-making in order to swiftly transition our business focus towards electrification.
Honda Report 2023

16

Business
Business Strategy
Strategy

Value Creation Story

55 Key Themes
ThemesGovernance

Related Data

Automobile Business Strategy

The Direction of the Product Lineup and Future ProductDevelopment Strategy

RegionWe view the shifts in business structure, value propositions and production processes in the BEV era as an

North
America• In 2024, Honda will introduce the “PROLOGUE,” while Acura will unveil the “ZDX,” both of which areco-developed with GM.
• In 2025, Honda will launch a mid- to large-sized EV incorporating a new E&E architecture*, built on
Honda’s dedicated EV-specific platform.

China• The “e:NS2” and the “e:NP2” are set to launch in early 2024.
• A mass-production model inspired by the “e:N SUV 序” concept, which was unveiled at the Shanghai
Motor Show in April 2023, is scheduled for release by the end of 2024.
• Including these three models, a total of 10 EV models will be introduced by 2027.

Japan• An N-VAN-based commercial-use mini-EV model will be launched in the first half of 2024.
• Following this, an EV based on the “N-ONE” will debut in 2025. Two compact EVs, including an SUV
model, are slated for release in 2026.

Europe• The “e:Ny1,” a model from the “e:N” series for the European market, will be launched sequentiallyacross European countries starting in the fall of 2023.

opportunity to deliver a new value through UX in tune with diversifying customer values. As we pioneer
new value propositions for electrified vehicles, our products will reflect the “spirit of sporty car-making”
inherent in Honda’s DNA. Furthermore, by globalizing our product lineup, we aim to drive productProducts to be introduced

development with a compelling brand message.

* E&E architecture: Integration of Electrification and Electronics Technologies (Electrification & Electronics Architecture)

Europe

China

e:Ny1

e:NS1

North America

e:NP1

Japan

Acura ZDX Type S

N-VAN-based commercial-use mini-EV
Honda ePROLOGUE
e:N SUV 序 / e:NS2 Prototype / e:NP2 Prototype / e:N GT Concept

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Value Creation Story

Business
Business Strategy
Strategy

55 Key Themes
ThemesGovernance

Related Data

Automobile Business Strategy

Toward the Early Independence of the Electrification
Business

Specific Initiatives

To achieve early autonomy in the BEV business, we are committed to addressing the following themes:

We will address the rapid pace of electrification by formulating a variety of battery procurement strategies

・Initiate an allocation strategy with the battery as the focal point to bolster our business structure,emphasizing management resource allocation.

Battery Strategy

to meet both current and anticipated needs.
Beyond our procurement of liquid lithium-ion batteries, we plan to initiate mass production of・Evolve the UX to align with the diversifying values of customers.

・Broaden customer touchpoints and augment service offerings through a lifecycle-centric approach.

・Forge a new brand identity by merging software and hardware, inclusive of establishing a digital service
infrastructure.

batteries in North America by 2025 through a joint venture with LG Energy Solution Ltd, aiming toestablish a new value chain. For the procurement of essential minerals, we have formed partnerships with
Hanwa Co., Ltd. and POSCO Holdings Inc. Additionally, we collaborate with Ascend Elements, Inc. andCirba Solutions, LLC in the recycling sector.

・Enhance production efficiency and value by introducing a global model.

・Lay the groundwork and advance technology for an information infrastructure that paves the way for a

From the late 2020s, we will not only advance our liquid lithium-ion batteries but also develop andintroduce next-generation batteries, including semi-solid-state and all-solid-state varieties. To enhance theperformance of our liquid lithium-ion batteries, we will collaborate with GS Yuasa Corporation to develop

sustainable society.

high-capacity and high-power versions specifically for EVs, supporting Japan’s rapid electrification.

Initiatives in the Battery Area

Furthermore, our investment in SES Holdings Pte. Ltd. will bolster the joint development of semi-solid-state

Facilitate R&D with development partners and build multi-layered measures to address diverse scenarios
All-solid-state Battery

Semi-solid-state Battery(Jointly developed)

batteries. Our goal is to produce batteries that are safe, have high capacity and exhibit increased durability.
Regarding all-solid-state batteries, we’re ramping up efforts to initiate a demonstration line in Sakura City,
Tochigi Prefecture by 2024, targeting a market launch by the late 2020s.

(Originally developed)

Charging and Infrastructure Strategy

We are actively working on expanding charging services in line with our growth in the BEV market. To
promote the adoption of EVs in North America, seven companies, including Honda’s U.S. subsidiary,(Jointly developed)

Liquid Lithium-ion Battery(Production Joint
Venture)American Honda Motor, BMW Group, GM, Hyundai, Kia, Mercedes-Benz Group and Stellantis N.V., haveagreed to form a joint venture. Their goal is to establish a high-capacity EV charging network across the
U.S. and Canada. The first charging station is slated to open in the U.S. by the summer of 2024, withsubsequent expansions focusing initially on metropolitan areas and major highways.
The station will feature multiple high-output DC chargers compatible with all vehicles adhering tocharging standards such as CCS*1 and NACS*2. With environmental considerations in mind, all power will
be sourced exclusively from renewable energies. The initiative aims to deploy at least 30,000 chargers
across the U.S. and Canada, establishing a high-power recharging network that is user-friendly for EV
drivers. For home charging, we will utilize Honda Smart Charge, an established EV charging service inNorth America, and plan to gradually introduce smart energy services that leverage the power supply
capabilities of EVs.
*1 CCS: Combined Charging System*2 NACS: North American Charging Standard

Honda Report 2023

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Business
Business Strategy
Strategy

55 Key Themes
ThemesGovernance

Related Data

Automobile Business Strategy

Specific Initiatives

SW (Software) Strategy

BEV Production System

Under the “Software-Defined Mobility” concept, which delineates the value of both hardware and services,

In response to the rapid electrification worldwide, we are advancing the establishment of an electric

we are accelerating our software development. Specifically, Honda is advancing the E&E architecture andvehicle production system globally within Honda. In North America, Honda has identified its three existingdeveloping its unique vehicle OS, aiming for its adoption in the mid-size and large EVs set to launch inplants in Ohio (Marysville and East Liberty, which produce automobiles, and the Anna Engine Plant, which

North America in 2025. Using this vehicle OS as a foundation, Honda will continue to evolve its in-vehicle

manufactures automobile powertrains) as central locations for EV production. While utilizing thesesoftware, offering advanced functions and services even after the vehicle purchase. Furthermore, we will

existing facilities, we are constructing efficient and highly flexible EV production lines.

swiftly provide digital services highly compatible with BEVs, centered on safety, comfort and reliability.

Moreover, with an eye on the EVs set to launch in the late 2020s, we have initiated the transformation

These services, designed with a focus on UX, will be offered under a unified management, includingof our production system towards a “state-of-the-art BEV manufacturing facility.” We will approach thisuser-friendly charging guidance and other appealing features.

transformation from the following three perspectives:

Regarding the proprietary development of software in areas such as vehicle OS, AD/ADAS, UX anddigital services, we plan to double our recruitment of skilled professionals specializing in advanced
software. We will also actively bolster our collaborations with partners to amplify our capabilities. Throughour partnership with SCSK Corporation, we will merge Honda’s system control and safety control
technologies with SCSK’s IT expertise. This synergy aims to maximize the potential of engineers from bothcompanies, offering continuous training and skill enhancement. Furthermore, by deepening collaborations
with development partners like KPIT Technologies Limited and by pioneering initiatives in fields like1）Evolution of factories capable of producing products with strong appeal efficiently and flexibly, and theestablishment of a supply chain.
2）Development of production lines that prioritize automation and intelligence to adapt to future
workforce shifts.
3）Transition to production processes that emphasize resource circulation, with a commitment tominimizing CO2 emissions to the greatest possible extent.

electrification and ADAS with Hitachi Astemo, Ltd., we seek to fuse Honda’s strengths in control and safety
technologies with the software development prowess of our partners, thereby realizing the new value that

In anticipation of higher production volumes post-2030, we aim to offer competitive BEVs withsignificant product appeal and price competitiveness through the global expansion of the state-of-the-art

software can bring.
In the realm of digital services, we aim to enhance software development to consistently provide

BEV manufacturing facility.

outstanding user experiences (UX) from the customer’s perspective. To achieve this, we have appointed
the CEO of Drivemode, Inc. as the new Global UX Officer, centralizing decision-making authority.
Advancements in Software Technology

Strengthening of the EV production
Production Sites in Ohio, the U.S.

AD/ADAS

Electric PT*1
control

VehicleoperatingsystemData analysis

UX
Digital service

Enhancement of software development
capabilities

IVI*2

Strengths of Honda

Strengths of each partner company

Control and Safety Technology

Software development capability

Marysville Auto Plant

East Liberty Auto Plant

Anna Engine Plant

Establishing a highly efficient and flexible production system using hub locations for EV production in North America

Enhancement of recruitment efforts for skilled
personnel in advanced software development
Striving for the rapid realization of the new value brought by software*1 PT: Powertrain*2 IVI: In-Vehicle Infotainment

Honda Report 2023

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Business
Business Strategy
Strategy

55 Key Themes
ThemesGovernance

Related Data

Automobile Business Strategy

ICE Business “Hybrid Evolution”
Alongside the acceleration of electrification, we remain committed to continuous development, ensuring
we deliver attractive products to customers who choose ICE vehicles.
We’ve implemented the Honda Architecture, which distinctly differentiates between the “common
components” and “unique components” for each vehicle model, in the full redesign of the CR-V and
Accord. Building on this foundation, we will persist in advancing this initiative. By merging a “Modular
Architecture with Unified Components and Layout” with the “Shared Utilization of BEV Advanced
Technologies,” we aim to extend state-of-the-art features, including advanced safety technologies, to ICE
vehicles as well. Starting in 2026, these features will be incorporated into our core model lineup forworldwide expansion. Furthermore, with the introduction of a lightweight platform, next-generation
power units and electric AWD, we commit to delivering superior environmental performance andenhanced dynamic capabilities.
From a business perspective, we will accelerate the standardization of lineups and powertrains
globally to enhance business efficiency and establish a complementary structure, including production
across various regions.
To swiftly address evolving customer needs, we will continue to deliver appealing products byimplementing measures such as shortening development timelines and utilizing derivative series.

Masayuki Nakatsuka

Advanced Safety System Software
Development Department
Advanced Safety and Intelligent
Solution Development Division
Software Defined Mobility Development Unit
Electrification Business Development
Operations
BEV Development Center
Engaged in the development of
behavior generation software for thebipedal robot “ASIMO,” and primarily
involved in research and systemdevelopment related to autonomous
driving assistance.
Favorite motto“As the rice plants bear fruit, they bow
their heads.”
Honda-ism which he has empathy“For the sake of the world and others, isthere anything we can do?”Interview ––––––––––––

Alleviating Concerns Related to Accidents and Introducing theExhilarating Transformation of Mobility to Society
Mobility possesses a profound ability to generate time. Guided by this notion, I found myself captivatedby the mobility concept and deeply moved by the principles of the founder, Soichiro Honda. My decision
to join Honda was driven by a desire to be a part of the legacy he had established. Shortly after becoming
a member of Honda, I engaged in developing motion generation software for the bipedal robot “ASIMO”
at the Fundamental Research Institute. Within this environment, associates discussed technology andaspirations equally, just as I expected. Nevertheless, I sensed a disparity with my personal aspirations. My true
aspiration was to harness my engineering expertise to contribute towards eradicating traffic accidents.

CR-V

ACCORD (for North American market)

During that period, the automated driving project was initiated, and I enthusiastically volunteered to bea part of it. Once assigned, my role has been centered around aiding drivers and minimizing the possibility ofaccidents as much as possible. My primary focus lies in the R&D of Advanced Driver Assistance Systems (ADAS).
In more recent times, I have dedicated myself to crafting driver assistance systems for situations where
the driver’s condition becomes abnormal, with the capability to halt the vehicle if the driver’s condition
deteriorates.
When I initially joined, senior colleagues often posed the question, “What do you want to do,
Nakatsuka?” In retrospect, I believe they were assisting me in discovering my genuine desires. Honda is anorganization that unites associates’ ambitions. I firmly believe that the potency of this grassroots method
forms the bedrock of Honda’s resilience and vigor.
Mobility that enables us to travel long distances in a short amount of time, experiencing a variety ofthings—an evolution of the “time machine,” so to speak. I aspire to create a society where we can enjoy thethrill and joy of this advancing dream tool without the worry of traffic accidents.

Honda Report 2023

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Business Strategy
Strategy

55 Key Themes
ThemesGovernance

Related Data

Motorcycle Business Strategy
Business Overview/Revenue Highlights

Unveiling New Possibilities in the Motorcycle Market

Revenue Highlights of the Motorcycle Business■■ Sales (left axis) ■■ Operating profit (left axis) ■■ Unit sales (right axis)

The motorcycle business is foundational to Honda, deeply rooted in its origins. Through a manufacturing(¥100 million)

approach tailored to each country and region, Honda has grown into a premier manufacturer with a
global network of over 30,000 dealers and 35 manufacturing bases for finished products. With an annual

25,000worldwide sales volume of approximately 20 million units, we capitalize on this extensive network,

20,000

platform design and a global supply complementation system. This has enabled us to craft products thatprofitable business framework.

20,2385,000

By addressing the universal “mobility needs” of customers and uncovering new opportunities within

2,500

the motorcycle market, we aim to lead the industry and become the foremost global motorcycle company.

XL750TRANSALP

21,001

15,000showcase Honda’s unique appeal and exceptional cost competitiveness, thereby maintaining a notably(thousands of units)

29,08930,00020,593
19,340

2,856

2019

2020

25,00021,85220,00017,872
15,132

2,916

30,0002,246

17,027
3,114

18,757

19,18015,000

4,887

10,000
5,000

0

0
2021

PIONEER1000-6 DELUXE CREW

CB750HORNET

2022

2023

2024

(Forecast)

GL1800(FY)

TRX420RX125

PCX

Rebel250

ActivaACE CB125

BeAT
Pop110i

CG160

Biz125

NXR160 Bros ESDD

Honda Report 2023

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Value Creation Story

Business
Business Strategy
Strategy

55 Key Themes
ThemesGovernance

Related Data

Motorcycle Business Strategy

Recognition of the External Environment / Key Challenges

Electrification Business Strategy

Towards a Business for the New Era

Direction of Electrification Business Strategy

The motorcycle market is anticipated to sustain its expansion, particularly in emerging countries characterized

Honda motorcycles address the global “mobility needs” of a diverse clientele and enjoy widespread use. Leveraging

by burgeoning young populations. Additionally, global environmental regulations are undergoing tightening,

our competitive manufacturing technologies and the expertise amassed through the development of internaland environmental awareness is growing as governments establish electrification targets not only in developed

combustion engine (ICE) vehicle platforms, we will embark on crafting an array of electric motorcycle platforms

nations but also in emerging economies like India and Southeast Asian countries.

catering to the demands of customers across different nations. Through streamlined manufacturing processes, we

The electrification of mobility is expected to be a solution, while on the other hand, the demand for electricvehicles in emerging countries is significantly influenced by government incentives. Moreover, challenges
persist on the infrastructure side, including stable power supply and the development of charging networks.
Amidst the uncertainties related to the shift to electric vehicles, we will optimize resource allocation by

are committed to leading the worldwide electric motorcycle electrification movement, ensuring that electric vehicles
provide the same exhilarating “joy of mobility” as their ICE counterparts, all at a more accessible cost.
To cater to the myriad needs across the globe, we are not only focusing on electric products intended for business
use within somewhat restricted contexts but are also actively designing solutions for personal use across a multitude ofidentifying markets where demand for ICE vehicles persists and where electrification is progressing. We will

scenarios. For personal-use models, the ability to select the most suitable battery type in accordance with usage

harness Honda’s strengths to distinguish ourselves from emerging electric vehicle manufacturers.

environments and convenience holds paramount importance. To empower customers to opt for their preferred battery
type, we are poised to offer two options, including swappable and plug-in battery, catering to a diverse range of demands.

Business Targets (Our Initiative’s Pathway)

Leading Environmental and Safety Innovations: “MoreConvenience, More Freedom”

Medium- to Long-Term Targets

Motorcycles serve as vital transportation means in emerging countries, particularly across the Asian region,

annual sales of 1 million units. By 2030, we aim to further expand the lineup and target sales of 3.5 million units.

By 2026, we intend to globally introduce a total of 10 or more electric motorcycle models, with the goal of achieving

contributing significantly to people’s lives and serving as essential components of social infrastructure. To thisend, Honda recognizes the importance of providing products at price points accessible to customers. We willsustain a superior level of cost competitiveness by consistently driving cost reductions through platform design
enhancements that enhance production efficiency and the expansion of a global supply complement.
Moreover, we are poised to intensify our engagement with customers through digital technology. Throughthis approach, we will vigorously promote and extend the convenience and enjoyment that motorcycles bring topeople’s lives.
Furthermore, in pursuit of a secure and safe mobility society, we will persist in our worldwide deployment ofSpecific Initiatives
Advancing Electrified Product Development

We are poised to enter the market with a focus on business-oriented models that are witnessing escalating
demand aligned with the principles of SDGs (Sustainable Development Goals) and ESG (Environmental, Social,and Governance) management. Among these models, the BENLY e:, GYRO e: and GYRO CANOPY e: stand as

driving safety education, a commitment we have upheld over an extended period. Additionally, by broadening

prime examples of business-oriented offerings, each equipped with the Honda Mobile Power Pack e: portable

the array of models equipped with advanced braking, LEDs and other safety technologies, we will deliverand swappable battery technology. The BENLY e: is now being manufactured not only in Japan but also inenhanced “convenience and freedom” to a broader spectrum of customers.

Thailand. Furthermore, these Thai-produced BENLY e: models are made available both for Thailand and for

To address environmental concerns, we will

export to Vietnam.

accelerate our endeavors to achieve carbon neutrality,transcending mere electrification. Our efforts willencompass enhancements in fuel efficiency within theinternal combustion engine (ICE) realm and technologies
compatible with bioethanol fuel, all while adapting to the
distinctive features of different regions.

Benly e:GYRO e:GYRO CANOPY e:

Honda Report 2023

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Business
Business Strategy
Strategy

55 Key Themes
ThemesGovernance

Related Data

Motorcycle Business Strategy

In addition to these business-oriented models, we introduced the EM1 e: as a personal-use model in

Promoting a Battery-Sharing Service

Japan in 2023. Our plans include expanding its presence into Europe and Indonesia, along with unveiling a

The popularity of electric motorcycles hinges on the resolution of concerns regarding battery cost,new model in India. Our focus remains on accelerating the development and launch of electric motorcycles

charging infrastructure and cruising range. As a targeted solution to these challenges, we have innovatedtailored for individuals, particularly in the burgeoning Asian region where demand for electric motorcycles isthe Honda Mobile Power Pack e, a portable and swappable battery. We introduced a battery-sharing

on the rise.

service initiative in 2022, using the swappable battery technology. To facilitate this, we have establishedlocal subsidiaries in both India and Indonesia. In Japan, in April of 2022, ENEOS Holdings, Inc. and the four
major Japanese motorcycle manufacturers (Honda, Kawasaki Motors, Ltd., SUZUKI MOTOR CORPORATION
and Yamaha Motor Co., Ltd.) jointly incorporated Gachaco, Inc. We plan to further expand and develop
this business in the future.

EM1 e:We are concurrently engaged in the development of plug-in charging system products featuring fixedbatteries, foreseeing a spectrum of customer applications and evolving market conditions. Ourcommitment endures in technological development that cater to the diverse needs and lifestyles of ourglobal customer base, delivering a variety of battery and charging method options.

Procurement and Production Strategy

Enhancing the Foundation of Business Structure—battery, PCU and motor—to match demand. Among the crucial markets in Asia, we will focus on

Enhancing Adaptability to Environmental Shifts

expanding in India and Indonesia.

Amidst profound transformations in the market landscape, encompassing escalating raw material andWe are strategizing the ideal distribution of production resources for electric motorcycle components

Furthermore, we are contemplating the next-generation batteries designed for electric motorcycles,
emphasizing high output, elevated energy density and extended lifespan, all while ensuring theparamount safety of this vital battery component.
To aptly serve the needs of diverse regional markets, we are propelling rapid development to furnish
battery systems tailored to distinct usages, encompassing NCM-based (nickel-cobalt-manganese) and
LFP-based (lithium-ion iron phosphate) solutions.

energy costs alongside growing societal expectations for environmental and safety considerations, Honda
is heightening its competitive edge by striving for an adaptable framework poised to navigate
environmental fluctuations. Tangible endeavors include component sharing, expedited development ofmass production, cost innovation through the utilization of cost-effective catalysts and the establishmentof a resilient supply chain embracing risk diversification. These actions collectively amplify efficiency acrossthe entirety of the value chain, ensuring enduring profitability while fortifying the bedrock of ourleadership in the electrification domain as we fervently pursue an augmented presence.

Honda Report 2023

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Value Creation Story

Business
Business Strategy
Strategy

55 Key Themes
ThemesGovernance

Related Data

Power Products Business Strategy
Business Overview / Revenue Highlights

Recognition of the External Environment / Key Challenges

Providing Products for Work and Daily Life
The power products business was inaugurated in 1953 with the

Toward Realizing a Work Environment “Beneficial to
Humanity and the Planet”

introduction of versatile general-purpose engines. These engines,

Against the backdrop of increasing environmental regulations, there is a growing shift towards electrification in theserving as power sources, found utility in diverse work equipment

domain of small-scale construction equipment and gardening, particularly in the realm of “small-scale” and “short-applications. Alongside this, we embarked on the development,

duration operation” products.

manufacturing and commercialization of complete machines (work

Conversely, the demand for internal combustion engine (ICE) products persists, fueled by their attributes such as

equipment) featuring these engines.

“high power output and extended operation hours” and their “cost-effectiveness,” well-suited to specific applications.

Our diverse product lineup garners widespread adoption acrossThus, Honda comprehends the imperative to cater to the diversified market demands, adroitly steering its

global clientele, culminating in the noteworthy milestone ofenvironmental endeavors in the ICE sphere even as it maintains an unwavering focus on electrification.

surpassing 170 million units in cumulative power product production,

Escalating labor shortages have instigated an ongoing quest for enhanced operational efficiency throughcommemorating our 70th anniversary in 2023.

mechanization, elevating the imperative for “attaining superior work efficiency of high quality,” irrespective of the

Expanding beyond engine-centric offerings, our present power

power source at hand. In this light, there emerges a tangible necessity for products and services that cater to thisproducts business is set to encompass portable batteries and productscenario, presenting improvements in precision and technological advancements in work equipment, including

electrification, broadening its horizons to become a business that

automation.

“bestows novel value upon mobility and the everyday lives of individuals.”

Business Targets (Our Initiative’s Pathway)

Revenue Highlights: Power Products and Other Businesses■■ Sales (left axis) ■■ Operating profit (left axis)

Operating profit (excluding aircraft and aircraft engines) (left axis) ■■ Unit sales (right axis)(¥100 million)

6,000

6,301

6,200

5,623

5,701

5,000
4,000

(thousands of units)

4,217

3,772

3,506

6,500

5,645

6,000

4,764

5,500

4,750

5,000
4,500

3,418

4,000

Enriching Lives Through Technology, Sustaining Prosperity and Delight
Since its founding in 1948, Honda has navigated its course under the guiding belief of “enhancing lives, even in small
ways” and “serving people through technology.”
Aligned with these enduring ideals, the power products business perseveres in its commitment. It seeks toaddress societal challenges by proffering products and services that globally inspire individuals to realize theirpotential. This aspiration will be realized through the delivery of Honda’s hallmark high-quality, appealing offerings—
products and services tailored to regional characteristics and dynamic market shifts.
Concerning the cornerstones of our ICE business—the pivotal power units—our trajectory entails the continuous

3,000

enhancement of their environmental performance. In the construction sector, where our engine sales hold

2,000

substantial sway, we shall fortify the promotion of electric power units while concurrently offering installation

1,000

293

0

-109

-1,000

2019

172
-250
2020

242

207
-116

-94

2021

2022

228

support. This endeavor will also extend to initiatives for bolstering operational efficiency and catering to corporate

486

2023

0

2024

(Forecast)(FY)demands. In the gardening domain, our efforts are directed towards propelling the electrification of lawnmowers
brush cutters and analogous tools. Simultaneously, in the marine equipment domain, our scope expands as wediversify our lineup of sizable outboard motors to match the ever-growing market requirements.

Operating Profit of Aircraft and Aircraft Engines Business Included in Total Operating Profit
FY

2019

2020

2021

2022

2023

100 millions of yen

-402

-422

-323

-337

-257
Electrified power unit eGX

Large outboard motor BF250

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Business Strategy
Strategy

55 Key Themes
ThemesGovernance

Related Data

Power Products Business Strategy

Electrification Business Strategy

Leveraging our strengths in the gardening domain, meticulously nurtured through attributes like the

Direction of Electrification Business Strategy“precise cutting“ ability and “endurance” of our walk-behind lawnmowers, we have solidified our presence.

The electrification business strategy underscores the power products business’ resolve to address societal

connected technology aimed at enhancing work efficiency for corporate clients. As we drive efficient

challenges by introducing Honda’s innovative value through product electrification. This commitment isdevelopment and production methodologies, we are poised to accelerate electrification, with externalpoised to enhance both people’s “work quality” and “life quality.”

partnerships as a potential avenue. In the marine equipment domain, we are embarking on the initiation

Within the realm of electric product development, our focal point resides in the electrification of smallscale construction equipment and gardening domain. Additionally, we are set to extend the reach of theAlongside the consumer-oriented “Miimo” robot lawnmower, we are exploring products integrated withof demonstration trials for electric propulsion systems designed for small watercraft, anticipating future
regulations pertaining to the utilization of internal combustion engines in lakes.

“Honda Mobile Power Pack e:,” a portable and interchangeable battery introduced in the motorcycle
business, to the sphere of power products.
In the small-scale construction equipment domain, our strategy revolves around leveraging ourestablished B2B customer base from the core business to promote electrification. We will support theelectrification of finished equipment manufacturers through the sale and installation assistance of theelectric power unit “eGX.” Beyond existing clientele, our efforts encompass the expansion of productintegration to regions anticipated to adopt electrification in the future.
Robot lawnmower “Miimo”(overseas model)

Electric propulsion for small boat
prototype

Enhancing the Foundation of Business Structure
Honda Mobile Power Pack e:

Komatsu Ltd.’s PC01E-1 Electric Micro Excavator
Equipped with Honda Mobile Power Pack e:

Cultivating Agility to Accommodate Diverse Demands
While flexibly responding to the diversified needs of different countries and regions, we will assess themarket entry for ICE products, leverage synergistic benefits with the motorcycle business and pursue
efficient operations in the development and production areas such as component sharing, production
optimization and procurement streamlining. Through these efforts, we aim to enhance product appeal in
the production realm as well and strengthen the business foundation for electrification. At the same time,
we will enhance environmental performance through improvements in fuel efficiency and technologies
compatible with carbon-neutral fuels. This will enable us to offer even more competitive products andservices.

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Business
Business Strategy
Strategy

55 Key Themes
ThemesGovernance

Related Data

Power Products Business Strategy

Akifumi FukayaPower Products Electrification Business
Planning Department
Electrification Business Planning Division
Motorcycle and Power ProductsElectrification Business Development Unit
Electrification Business Development
Operations
Responsible for electric product andbusiness planning for Power Products.
Stationed at American Honda from2019, returned to Japan in 2022.
Favorite motto“Try everything with grit.”
Honda-ism which he has empathy“Work for yourself first.”“Eliminate no play, no error.”Interview ––––––––––––

Bringing Honda Products that Wholeheartedly Cater to People,
to the World
Throughout my childhood in the United States, Honda products were ubiquitous. The sight of the
Honda logo in a foreign land instilled courage in me, even as a child. With the goal of advancing thebrand in the U.S., I embarked on my journey in overseas sales for Power Products. From introducing
new models of general-purpose engines to my current role in spearheading the development ofelectric lawn and garden equipment, my focus has been on expanding demand.
During my tenure at American Honda, the swift proliferation of the COVID-19 pandemic led toan environment of uncertainty. In such times, I gleaned valuable insights from my supervisor, who
consistently worked hard prioritizing what was happening on-site. He would visit sales locations
after meetings and offer support on the production floor. Additionally, I found inspiration in thecommitment of local team members who approached their work from a customer-centric viewpoint,addressing critical needs. Honda boasts a workforce that upholds the “Three Reality Principle”
regardless of race or nationality. Navigating crises alongside such colleagues has become a cherishedasset in my personal and professional journey.
My dream is to explore diverse regions around the world, broadening my perspective andmaking contributions to Honda’s American operations from a managerial role.
While the company’s strategies may adapt to the changing world, the core values of Honda
remain steadfast. My goal is to uphold the aspirations of those who paved the way before me, while
also relentlessly pursuing my own dreams. Through this journey, I aim to create products thatenhance people’s lives and bring richness to their experiences.
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Business Strategy

5 Key Themes

Governance

Related Data

To Realize a Zero Environmental Impact Society Environmental Strategy
Initiatives to Achieve Zero Environmental Impact

Triple Action to ZERO

For people to live on Earth in a sustainable manner, Honda seeks to realize a society with zeroenvironmental impact throughout the lifecycle of its products and corporate activities by 2050.
Efforts will be centered around the Triple Action to ZERO program, which integrates three elements—
carbon neutrality, clean energy and resource circulation—within a single initiative.
The three elements are closely related. As such, rather than promoting them independently, we aim to
maximize synergistic benefits by considering their linkages.

An Integrated Approach to Achieving Zero Environmental
ImpactPromoting Life Cycle Assessment (LCA)

Honda recognizes the importance of taking an integrated approach to realizing zero environmental
impact throughout the product lifecycle, from mining raw materials to product disposal. This focus involves
both reducing CO2 emissions and resource recycling, etc.
By promoting LCA, Honda will calculate lifecycle CO2 emissions in all areas of its corporate activities,

We recognize that the promotion of Triple Action to ZERO will also lead to the acceleration of
initiatives in international frameworks and a stronger focus on the Nature-based Solutions (NbS) that are
attracting increasing interest from stakeholders.

visualize the effects of CO2 emission reductions and accelerate response to reducing carbon emissions at
the development stage and reducing environmental impact by recycling resources.
Honda will continue its efforts to reduce the environmental impact of its products throughout theirlifecycles.

Net zero CO2 emissions
To address climate change issues,
Honda will work toward a target ofachieving net zero CO2 emissions
from corporate activities andthroughout the product lifecycle tolimit the global averagetemperature rise to 1.5ºC above
pre-industrial levels.

100% utilization of carbon-free energy

100% use of sustainable materials

To address energy issues, Honda aims to use
clean energy during product use and corporate
activities.

To address the effective utilization of resources,
we will strive to develop products and establish
systems that use sustainable materials with noenvironmental impact. In corporate activities, we
aim to achieve zero industrial water intake andzero industrial waste at Honda plants by 2050.

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Carbon Neutrality and Clean Energy Initiatives
Reducing CO2 Emissions in Corporate Activities

Reducing CO2 Emissions in the Area of Products

promote the improvement of production efficiency, implementation ofsuch as electrification, to become carbon neutral, diversify energy sources and implement total energy

As part of our response to climate change and energy issues, we will

We will reduce CO2 emissions during product use by introducing innovative environmental technologies,

Improvement of
production efficiency

energy-saving measures, shifting to low-carbon energy and use ofrenewable energy to achieve our CO2 reduction target for 2030 in termsof reducing the total CO2 emissions of our corporate activities.

Implementationof energy-saving
measuresMoreover, through the establishment of CO2 reduction technologies
and the use of clean energy through the utilization of renewable andother energy sources, Honda will make its Automobile Plant of Saitama
Factory in Japan Honda’s first carbon neutral plant in FY2026.
In developing these initiatives globally, we are also building asystem to promote information sharing between business sites andregions.
Through these initiatives, we aim to achieve carbon neutrality inmanagement initiatives. The electrification of products represents an important initiative that contributes
to addressing climate change and pollution issues through cleaner emissions. We have set a target forelectric products sales ratio in 2030 in each of our businesses and are accelerating our efforts while
expanding and upgrading our product line-up to solve and contribute to social issues and expand business
opportunities.
In the motorcycle business, we will drive the global electrification, particularly in the key markets of

Shifting to low-carbon
energyIndia and Indonesia, through attractive products that use Honda’s unique technologies as the world’s

Use of renewableenergycell vehicles) to 100% globally by 2040; all automobile products to be launched in 2040 will be carbon-

automobile production in the late 2030s. In addition, we aim to achieve

leading manufacturer.
In the automobile business, we aim to increase the sales ratio of EVs (electric vehicles) and FCVs (fuelfree, and by 2050 we aim for carbon neutrality throughout the entire lifecycle of our products.
In the power products business, through the electrification of our products, we will address societal

net zero CO2 emissions in corporate activities in 2050.

challenges by delivering new value from Honda and contribute to improving people’s quality of work and life.

Target to Achieve Zero Environmental Impact
Reduction rate of total CO2
emissions from corporate activities(compared to FY2020)

Target for 2030

46%

Target for 2050

Net zero CO2 emissions
List of Environmental Targets➡p.35

EM1 e:

Honda e

HRG466XB

Target to Achieve Zero Environmental Impact
Sales ratio ofelectrified products
Reduction rateof CO2 emissions
intensity of productuse (compared to
FY2020)Target for 2050

Target for 2030
Motorcycles

15%

Automobiles

30%Power products

36%

Target for 2030
Motorcycles

34.0%

Automobiles

27.2%

Net zero CO2 emissions

Power products

28.2%

List of Environmental Targets➡p.35

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Resource Circulation Initiatives
Our Commitment to the Initiatives

Since its founding, Honda’s manufacturing processes have taken into consideration the need to reduce theconsumption and disposal of limited global resources and ensure resources are used effectively.
Demand for resources continues to grow against a backdrop of global population growth andeconomic development, and the risk of resource depletion is expected to increase as more resources are
consumed. In addition, resource extraction consumes a significant amount of energy. This mass-production
and mass-consumption lifestyle is also recognized as a social issue, and a shift to a circular economy isrequired.
In response to these social issues, Honda is actively utilizing recycled resources while working tostabilize the procurement of materials, including important minerals. At the same time, we will contributeto the reduction of CO2 emissions and energy consumption by researching advanced recycling

Creative Solution Centertechnologies and promoting the establishment of a circular value chain, thereby contributing to a circular
economy. We will continue our efforts to establish a circular economy.
Resource Circulation Concept Diagram

Circular Design

Business Innovation

Transition from Mass Consumption to
Circular Business Model

Clean
EnergyApplying Sustainable Materials andProduct Design to Achieve Resource
Extraction Reduction

Resource
Circulation

Advanced Recycling
Energy-Eﬃcient, Low-Carbon,
Cost-Eﬀective, Advanced Recycling
Technologies

参考PPT＝英文Frutiger

CarbonNeutrality

Circular Value Chain
Data Traceability

Circular Value Chain for Achieving
Advanced Recycling

Information Management System as
the Foundation of the Circular Economy

和文たづがねゴシック＜統合報告書使用書体

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Resource Circulation Initiatives

Effective Utilization of Resources through Corporate Activities

Effective Utilization of Resources in Product Areas

Being aware of the potential for corporate activities to impact upstream and downstream water resources,

Honda aims to achieve 100% use of sustainable resources (sustainable materials) with zero environmental

Honda is also focusing on conserving water resources.

impact by 2050 to free manufacturing from resource constraints and continue to provide mobility value tocustomers, and create new joys.

Waste, etc.

Throughout the product lifecycle, from resource procurement to product disposal, we are working

Honda is working to reduce waste in our corporate activities, focusing on the risks associated with resource

toward a shift from mass consumption, in which products are disposed of immediately after use, todepletion and environmental pollution. We are working on the 3Rs (reduce, reuse, recycle), including

recycling, by developing products with designs that are easy to dismantle and replace, and by using ourresource reduction, such as reducing the amount of scrap materials produced during manufacturing

products and parts for secondary purposes. We are taking on the challenge of creating a system to reduce

processes, and are aiming to achieve our target of reducing total waste generation by 14.5% compared towaste and recycle resources.

BAU in all corporate activities in 2030.

In addition to actively utilizing recycled materials and ensuring the stability of our material
procurement, Honda is also striving to establish a circular value chain that promotes advanced recycling

Water Resources

practices. This includes forming a consortium for dismantling and optimizing the logistics of products andHonda selects areas where harmonious coexistence with nearby water sources is viable and conducts its

resources for high efficiency. To achieve this objective, we are actively partnering with other companies forcorporate activities in compliance with host countries’ environmental assessment laws and regulations. We

further initiatives.

also promote various green initiatives, such as using recycled water to minimize water intake.
We recognize the water supply risk that affects our businesses and the depletion risk that impacts local
communities. As such, we have established the target of reducing the total water intake by 14.5%

We will also focus on building a traceability system that enables the visualization of lifecycle CO2
emissions and facilitates the understanding of the state of deterioration of products and components thatis necessary for the efficient use of resources.

compared to BAU in all corporate activities in 2030.
Target to Achieve Zero Environmental Impact

Target to Achieve Zero Environmental Impact

Target for 2030
Target for 2050

Reduction rate of total waste
generation in corporate activities(compared to BAU)

Target for 2030

14.5%

Zero industrial waste

Reduction rate of total water
intake in corporate activities(compared to BAU)

Target for 2030

Target for 2050

14.5%

Product resource circulation

Set internal milestones

Target for 2050
Use of sustainable materials

100%

List of Environmental Targets➡p.35

Zero industrial water intake
List of Environmental Targets➡p.35

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For Biodiversity Conservation
Basic Approach

Honda benefits from the use of natural resources in its corporate activities. In addition to procuring raw
materials, Honda depends on and affects a great deal of natural capital throughout its value chain, from

Assessment of Biodiversity Priorities at the Company’s Production Sites

R&D to manufacturing, use and disposal.

Legend■ Higher-scoring sites (highest priority)■ Medium-scoring sites (priority)■ Lower-scoring sites (other)

Honda recognizes biodiversity conservation as an important issue for global environmental conservationin Honda’s Environmental Statement, and has defined the harmonization of biodiversity conservation withcorporate activities as a basic approach.
Honda has endorsed the principles of the Taskforce on Nature-related Financial Disclosures (TNFD) andhas participated in its activities, the TNFD Forum, since December 2022. The Company is committed toproactively disclosing information and will continue to further accelerate its environmental conservation
efforts.

Priority Analysis for Biodiversity Conservation

Honda uses the methodology recommended in the beta version of the TNFD to assess the potential for its
corporate activities to impact biodiversity. We use the Integrated Biodiversity Assessment Tool (IBAT), a
biodiversity assessment tool, at our own production sites.

Results of the Primary Assessment of Biodiversity Impacts of Products
OthersThe Company surveys its own 86 production sites worldwide within a 50 km radius of each site to

Natural rubber(tires)determine their proximity to areas inhabited by any endangered species noted on the IUCN*1 Red List. To
conduct specific biodiversity efforts, Honda uses indicators in IBAT*2, such as the KBA*3, WDPA*4, IUCN Red
List of Threatened Species and STAR, to conduct integrated assessments of the biodiversity risk of theIron

production sites. Honda will continue to identify priority sites and consider specific efforts to conserve

Nickelbiodiversity.

Electricity(when driving)
CopperCalculation Conditions· Evaluation vehicle:
Compact electric vehicle· Energy consumption during production: inJapan in 2020
· Lifetime mileage: 200,000 km· Inventory data: IDEA v2.3
· EINES assessment (biodiversity impact): LIME2

In addition, products are made from a variety of materials, some of which may have an impact on
biodiversity. Therefore, Honda is engaged in the primary assessment of the impact of materials used in its
products on biodiversity.
Based on the assessment results, the Company will conduct a more detailed analysis of materials thathave a large potential impact on biodiversity and consider methods to reduce the impact of its products on
biodiversity.
*1 IUCN: International Union for Conservation of Nature and Natural Resources*2 IBAT: Integrated Biodiversity Assessment Tool
*3 KBA: Key Biodiversity Area
*4 WDPA: The World Database on Protected Areas

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Disclosure of Information Based on the TCFD Recommendations

Response to the TCFD Recommendations

Strategies

In treating responses to climate change and energy-related issues as crucial in the environmental field, inClimate change has wide-ranging impacts, not just on the automobile industry but on people’s living

April 2021, Honda announced, its vision to “realize carbon neutrality for all products and corporate

environment and lifestyles too. To evaluate and examine the impacts of climate change on business,

activities Honda is involved in by 2050.” Hence, we have declared our support to the Task Force on Climate-

Honda utilizes a scenario analysis noted in the TCFD recommendations. This scenario analysis takes 2030 asrelated Financial Disclosures (TCFD), established by the Financial Stability Board (FSB), as well as disclosing

the target year and identifies climate change risks and opportunities for Honda under multiple scenarios,

information based on the information disclosure framework recommended by the TCFD. The

including a net-zero scenario. The identified risks and opportunities are reflected in our corporate strategy,

recommended disclosures for the core elements of the framework - Governance, Strategy, Risk

together with the strategies of each business.

Management and Metrics and Targets - are listed at the end of the relevant text. We will continue topromote the disclosure of information related to climate change, while conducting scenario analysis on
climate change risks and opportunities and reflecting the results in our management strategies.

Scenario Analysis Overview

Honda has defined multiple scenarios – including 1.5°C and 4°C scenarios – to assume a progressive
worldview and to envision applicable changes to the business environment in the future. Our scenario

GovernanceMonitoring System by Directors

As climate change may have a significant impact on Honda’s business performance as a whole, we holdannual World Environment and Safety Strategy Committee meetings. The Committee monitors long-term
policies, targets, strategies, and progress related to climate change and other environmental and safetyissues. The total CO2 emissions reduction targets set by the Committee are reported to and supervised by
the Board of Directors. Please refer to “Remuneration Structure for Directors and Executive Officers” (➡p.61)
to understand our remuneration structure for Directors and Executive Officers, which takes into account
ESG aspects. TCFD Governance Recommendation a

Roles of Top Management Members

The World Environment and Safety Strategy Committee is chaired by the CEO, who has ultimate
responsibility for addressing climate change issues. The Committee deliberates on PDCA for each region,
the risks and opportunities concerning climate change, energy and resources, as well as the short-,
medium- and long-term environmental strategies based on them. Global medium- to long-term
environmental policies and plans are also proposed based on company-wide policies and medium- tolong-term management plans. In addition, important matters are resolved by the Executive Council andanalyses on the motorcycle, automobile and power products businesses have identified various risks andopportunities for each, based on the transition and physical risks and opportunities described in the TCFD
recommendations. TCFD Strategy Recommendation a
Based on the risks and opportunities identified, we have carried out an examination of the degree of
impact on financial conditions over the short-, medium- and long-term. A failure to make an appropriate
response to the anticipated events as described by each scenario will pose a risk to our business.
Nonetheless, we are undertaking initiatives so that we can generate new business opportunities byadvancing Honda’s technologies, products and services. In order to minimize damage or the risk of
incurring damage caused by a natural disaster, we will promote the establishment of a stable production
structure via a robust global value chain. From 2023, Honda has started operating an internal carbon
pricing (ICP) system to further accelerate the reduction of CO2 emissions at its Japanese business sites. The
carbon price is set at 15,000 yen per metric ton of CO2, while the amount of carbon reduction is converted
into a monetary value that can be utilized as one of the factors when making capital investment decisions.
TCFD Strategy Recommendation b

To achieve more sustainable corporate management, Honda is examining current response measures
to the aforementioned risks and opportunities and improving the resilience of its strategies. Honda hasdeveloped strategies based on multiple scenarios. The Company utilizes these strategies in undertaking
business, seeks to reduce risks and create opportunities and promotes resilient products and services.
TCFD Strategy Recommendation creported to the Board of Directors. TCFD Governance Recommendation b

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1.5 ℃ scenario

By using the Net Zero Emissions Scenario (NZE) of the IEA and the IPCC AR6 SSP1-1.9, we have developed our 1.5°C scenario.
• As part of the 1.5°C scenario, we assume that measures to achieve carbon neutrality by 2050 will be promoted across the world, resulting in thewidespread use of carbon-free products and renewable energy.
• In the automobile industry, we assume even more stringent regulations on fuel efficiency and zero-emission vehicles (ZEVs), and, as a result, producing arise in demand for electric vehicles (EVs) and fuel cell vehicles (FCVs) — although mainly in developed countries. Additionally, the transition to a circular
economy is assumed to accelerate.
• Furthermore, in parallel with the tightening of regulations, we assume that customers’ sense of value will shift, with an increasing number developing apreference for carbon-free products, such as EVs and FCVs, and services too.
• As decarbonization approaches, we also assume advances in renewable energy and energy-saving clean technologies, as well as the growth of theirwidespread use.

4 ℃ Scenario

We have developed our 4°C scenario by using IPCC AR6 SSP3-7.0.
• In the 4°C scenario, we assume that irreversible environmental changes will occur,
leading to more frequent and more severe natural disasters.

Key Risks and Opportunities for Honda
Risk

Policy and regulations

Changes in customers’
sense of value
1.5 ℃

4℃

• Drop in unit sales of internal-combustion engine (ICE)vehicles due to more stringent fuel efficiency regulations
and Zero Emissions Vehicles (ZEV) regulations• Increased costs due to carbon tax and Emissions Trading
System (ETS), etc.
• Drop in sales caused by failure to meet customer demand• Drop in sales caused by changes in consumer behavior(e.g. progress in sharing services and changes in mobility
preferences)• Tarnished corporate images in response to climate change

Timeframe*

Short- /medium- /long-term

Opportunity• I ncrease in sales due to a sales expansion ofelectrified products and services, including
EVs and FCVs

Timeframe*

Response

Short- /medium- /long-term• Carbon neutrality of power units and enhance the lineup of electrified
products
・Allocate proceeds from the issuance of Green Bonds to expenses related tothe development and production of electrified products・Invest resources in the areas of electrification and software technologies(approx. 5 trillion yen over the next ten years)
・Strengthen external partnerships for liquid lithium-ion batteries (➡p.10, p.18)
・Development of next-generation batteries (➡p.18)
・Promote the establishment of an electrified product production system(➡p.19, p.23, p.25)• Create new energy services based on electric mobility (➡p.18, p.23, p.54)• Introduction of Internal Carbon Pricing• Promote ESG information disclosure, including climate change-related risks

Changes in technology• Increase in capital investment costs following the
introduction of renewable energy and energy-saving
technologies• Increased costs due to carbon tax, Emissions Trading System(ETS), etc.

Short- /mediumterm•C reating environmental value with recycledresources•D rop in business operation costs as markets
shift to renewable energy and production
facilities with higher energy efficiency

Short- /mediumterm• Secure and promote research budgets for basic research areas centered oncarbon-neutral technologies (approx. 100 billion yen per year)• Allocate funding quota for startups in advanced technologies (approx. 10
billion yen per year)• Establish strong partnerships with resource-recycling companies (➡p.10, p.29,
p.30)• Introduction of Internal Carbon Pricing• Promote carbon neutrality at the Saitama Factory’s assembly plant• Create new energy services based on electric mobility

More frequentand severe natural
disasters• Drop in sales due to suspension of production resulting
from natural disasters, which will damage Honda’s
production bases and disrupt its supply chain

Long-term• I ncrease in sales of electrified products thatcan be used as an emergency power source
when the need for power supply increases
during a disasterLong-term• Enhance the lineup of electrified products• Create new energy services based on electric mobility• Establish a stable production structure through a global value chain*For a timeframe, short, medium and long mean: less than one year, one to less than three years and three years or longer, respectively.

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Risk Management
At Honda, “climate change-related risks” are positioned as one of the company-wide priority risks, which

All risks related to corporate activities are managed within the “Risk Management Committee,” chaired byinclude the environmental risk such as stricter environmental regulations, and natural disaster risk such as

the company-wide Risk Management Officer. This committee encompasses risks associated with climate

earthquakes, floods, etc.

change as well. While ensuring alignment with the company-wide risk management activities, we are

The response to climate change-related risks is being driven by the Corporate Planning Unit, theresponsible department. They are responsible for organizing information on the progress ofenvironmental measures discussed and coordinated between Business Operations and Regional
Operations as well as globally relevant themes. For example, regulatory risks are managed not only withrespect to existing regulations but to new ones as well. Regarding the investigation, evaluation andmonitoring of the risk of natural disasters, all manufacturing sites are evaluated for water risk using the
AQUEDUCT tool of the World Resources Institute (WRI) and the Water Risk Filter tool of the World Wide
Fund for Nature (WWF).
The World Environment and Safety Strategy Committee (Secretariat: Corporate Planning Unit), whichis in charge of company-wide environmental strategies, is attended by the company-wide Risk
Management Officer and formulates global medium- to long-term environmental policies, targets andplans, which are then decided by the Executive Council. In addition, the World Environment and Safety
Strategy Committee confirms progress and performance against key environmental targets and formulates

continuously enhancing environmental management, including climate change-related risks.
TCFD Risk Management Recommendation c

Regarding the risk assessment and management process within the company-wide risk management
activities, please refer to “Governance | Risk Management” (➡p.64, p.65) for more information.
TCFD Risk Management Recommendation a and b

Environmental Management Structure, including Climate-Related Risks and Opportunities
ReportBoard of Directors

ReportRisk Management Committee
Chairperson:
Risk Management Officer
Secretariat:
Corporate Strategy Division

ReportBoard of Directors.

Affairs Office, creating a cross-functional structure within the respective business operations. With thisframework in place, they develop and promote business plans that incorporate environmental measures.
Each Regional Operation formulate and execute plans based on information shared during the World
Environment and Safety Strategy Committee as well as the “the Six Region Environmental Secretariat
Committee.” When devising these plans, discussions take place primarily in the “Regional Environmental

D
P Businesses C

Motorcycle and Power
Products Operations

A

Electrification Business
Development Operations

Six Region Environmental Secretariat Committee

Share information

Instruct

North America Regional
Environmental Committee

Automobile Operations

Each Business Operation and Regional Office formulates and executes implementation plans based on
Each Business Operation establishes an Environmental Responsible Officer and an Environmental

ReportWorld Environment and Safety Strategy Committee
Chairperson: Chief Executive Officer
Secretariat: Corporate Planning Unit

policies for addressing issues. Important matters are decided by the Executive Council and reported to thethe global medium to long-term environmental policies.

Executive Council

Discuss /Coordinate

China Environmental Committee
Japan Regional Environmental
Committee
Asia and Oceania Environmental
Committee
South America Environmental
Committee

D
P

RegionC

A

Europe, Africa and the Middle East
Regional Environmental Committee

Committee,” where alignment is sought among various Operations in collaboration with each other.

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Metrics and Targets
Metrics for Risks and Opportunities

By 2050, Honda is seeking to realize carbon neutrality for all products and corporate activities theCompany is involved with. As the world’s largest power unit manufacturer with total annual sales ofapproximately 30 million units in the motorcycle, automobile, power product, outboard engine andaircraft fields, we have been working to develop carbon-neutral power sources for a broad range of
products.
In order to make steady progress toward carbon neutrality by 2050, Honda has defined corresponding
targets and has been promoting efforts accordingly. For CO2 emissions during product use, a target for CO2
emissions intensity has been set for 2030, in addition to the current target, representing global sales shareof electrified products. In the area of corporate activities, we aim to reduce our total CO2 emissions by 46%

Honda’s GHG Emissions

Honda believes that calculating and disclosing its greenhouse gas (GHG) emissions as a responsible mobility
company is a necessary step for proactively promoting GHG emissions reduction efforts across the world.
Given our business characteristics, our value chain produces large emissions, including those fromproduct use. As such, it is important to calculate and disclose Scope 3 emissions. Consequently, we calculate
and disclose emissions from our value chain (Scope 3), in addition to direct (Scope 1) and indirect (Scope 2)
Honda emissions.
We will continue to identify and manage related data, which will be utilized to implement GHG
emissions reduction measures.

from FY2020. To achieve this target, we will promote initiatives to such as improving production efficiency,
implementing energy-saving measures, shifting to low-carbon energy and the use of renewable energy.
Additionally, for water resources vulnerable to climate change, we are giving consideration to watersupply risk that affects our businesses, together with depletion risk that impacts areas surrounding our
production bases. Hence, we will undertake initiatives to reduce our industrial water intake.
TCFD Metrics and Targets Recommendation aTarget to Achieve Zero Environmental Impact
TCFD Metrics and Targets
Recommendation a

TCFD Metrics and Targets
Recommendation cTarget for 2030

Target for 2050

Reduction rate of total CO2
emissions from corporate
activities (compared to FY2020)
Sales ratio of electrified products
Reduction rate of CO2 emissions
intensity of product use(compared to FY2020)(million t-CO2e)

FY2020

FY2021

FY2022

FY2023Emissions from the entire value chain

331.2

254.48280.02288.23

Scope 1

1.24

1.12

1.16

1.09

Scope 2

3.79

3.38

3.14

2.73

Scope 3298.09249.98275.72*284.41The definitions of Scopes 1, 2 and 3 are provided in the GHG Protocol.
・Scopes 1&2: Direct and indirect GHG emissions from the corporate activities of Honda Motor Co., Ltd. and its consolidated
subsidiaries and affiliated companies in and outside of Japan, excluding some small companies. See Honda ESG Data Book
p.137 for details.
・The Scope 3 figures are the sum of emissions from categories 1, 2, 3, 4, 5, 6, 7, 9, 10, 11, 12 and 15.
* We changed the calculation method of Scope 3 Category 11 emissions from FY2022. See Honda ESG Data Book p.136 for details.

46%
Motorcycles

Automobiles

Power products

Motorcycles

Automobiles

Power products

15%

34.0%

30%

27.2%

36%

Net zero CO2 emissions

28.2%

Reduction rate of total waste
generation in corporate activities(compared to BAU)

14.5%

Zero industrial waste

Reduction rate of total water intake
in corporate activities (compared to
BAU)

14.5%

Zero industrial water intake

Product resource circulation

TCFD Metrics and Targets Recommendation b

Set internal milestones

Use of sustainable materials

100%

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Tetsuo Hayashi

Automobile Operations Production
Unit
Saitama Factory
Automobile Plant (Yorii)
Plastics Department
Engaged in maintenance of bumper
and instrument panel production
facilities, as well as energy reduction
tasks.
Favorite motto“Fall seven times, stand up eight.”
Honda-ism which he has empathy“Light your own torch.”“Waigaya”

Interview ––––––––––––

Even in the Face of Challenges, if Something Needs to be Done, I Will
Maintenance, improvement and optimization of production facilities for automobile fall under myresponsibilities. Driven by a commitment to uphold Honda’s craftsmanship and operational excellence, I
approach my daily tasks with a strong sense of purpose. In recent years, I have been chosen as a member of
the “Yorii Carbon Neutral Project,” focused on implementing production technologies that reduce
environmental impact and enhance efficiency. My efforts revolve around energy reduction in production
facilities and the transition to carbon-free energy sources. This endeavor aligns with the ambitious goal ofachieving net zero CO2 emissions across all activities by 2050. Each member of the project holds steadfast
determination, asserting, “We will succeed without question,” and “Our present endeavors will benefit theworld in the future.” With unwavering conviction, we transcend organizational boundaries, pooling ourcollective wisdom to overcome this formidable challenge.
Reflecting on the past, when I initially joined the company, I didn’t believe I had much to offer. Despite
my boss having high standards, he encouraged me with the words, “This individual has potential.” Driven bya determination to meet his expectations, after about five years of dedicated effort, he remarked to me oneday, “Your absence in the woods would pose a challenge.” Hearing this filled me with a sense of validation— to be recognized as indispensable. The progress I’ve made is owed to the support and confidence many
have shown in me. Now, I am committed to reciprocating that support, engaging with juniors and myresponsibilities with a profound sense of gratitude.
My aspiration is to cultivate Honda’s new vehicle production environment while imparting energy
reduction techniques and carbon-free energy substitution know-how to juniors and the community,
thereby enhancing society’s overall energy reduction capabilities. Just as I have done in the past, I am
prepared to step up for tasks, even if they are intricate or challenging, driven by an unwavering belief inseeing them through to completion.

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To Realize a Zero Traffic Collision Society Safety Strategy
Toward a Zero Traffic Collision Society
Honda aims to achieve zero traffic collision fatalities involving Honda motorcycles and automobiles

Beyond that, a major challenge for the year 2050 will be fatal accidents worldwide involving

worldwide by 2050*1. As a milestone, Honda aims to halve the number of global traffic collision fatalities

pedestrians, cyclists and riders. To address this issue, we will promote R&D of “Safe and Sound Network

involving Honda motorcycles and automobiles worldwide by 2030*2. These targets apply to new vehicles

Technology” that supports risk prediction and avoidance before an accident occurs by communicating withand motorcycles and those already available on the market.

everyone sharing the road. Honda aims to achieve zero traffic collision fatalities involving Honda

Honda safeguards against accidents caused by various factors by evolving and combining threeelements: Human Ability (awareness-building activities), Mobility Performance (technologicaldevelopment) and the Traffic Ecosystem (collaboration with others and system/service development).
As a result, in Japan and the United States, the traffic fatality rate per 10,000 vehicles for all Honda
automobile, including minicars, is below the average of all major auto OEMs.
A major challenge as we move toward 2030 is fatal accidents involving motorcycles in emerging
countries. As the world’s largest provider of motorcycles, Honda recognizes it has a social responsibility toproactively address this issue and is conducting educational activities targeting a wide range of people andincorporating safety equipment into motorcycles, such as advanced brake systems of ABS*3 and CBS*4, andLED headlights that are highly visible and make riders more visible from other road users at the same time.
For automobiles, we actively promote the functional evolution and dissemination of advanced driverassistance systems (ADAS), effectively reducing accidents in emerging and developed countries.
*1 Traffic collision fatalities involving Honda motorcycles and automobiles: Traffic collision fatalities involving Honda
motorcycles and automobiles, as well as pedestrians and bicyclists (i.e., all traffic participants, except for intentional andmalicious violators of the rules and persons who are incapable of fulfilling their responsibilities)*2 Halve the number of traffic collision fatalities per 10,000 vehicles involving Honda motorcycles and automobiles
worldwide in 2030 compared to 2020.
*3 ABS : Antilock Brake System*4 CBS : Combined Brake System

Traffic collision fatalities involving Honda
vehicles (per 10,000 vehicles)

Honda Safety Targets

50%
Reduction

2020

motorcycles and automobiles by 2050.
Trends in Fatality Rates Involving Automobiles per 10,000 Vehicles Owned
Japan

Overall Japan average

Mortality rate (persons/unit)■ HondaUnited States
Mortality rate (persons/unit)

1.0

2.5

0.8

2.0

0.6

1.5

0.4

1.0

0.2

2007

2009

2011

2013

2015

2017

2019

2021 (FY)

Source: Honda research based on Japan Traffic Accident Analysis Center data.
Japan’s totals are based on annual traffic statistics for automobiles andmotorized bicycles.

0.5

2007

2009

2011

2013

Overall U.S. average■ Honda2015

2021 (FY)

2017

2019

Source: NHTSA Fatality Analysis Reporting System (FARS) data, based on Honda
research. The U.S. totals are based on the TSF Fatality Rate per Registered
Vehicles.

Three Elements of Safety

50% ofCurrent Traffic
Collision
Fatalities

TowardZero
Fatalities

Zero Traffic
Collision
Fatalities

2030

2040

2050

Year

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To Realize a Zero Traffic Collision Society | Safety Strategy

Human Ability: Awareness-Building Activities

Mobility Performance: Technological Development

As we reach the 2030 milestone, it is important that our awareness-building activities expand opportunities

To realize the 2030 milestone, the functional evolution and diffusion of advanced driver assistance systems

to support everyone involved in the transportation community through quality programs.

(ADAS) will be important from a technological development perspective. It is envisaged that this will

To achieve this, Honda is training instructors, strengthening traffic safety awareness-building activities
at traffic education centers and dealerships and utilizing ICT tools, such as smartphones, to deepenenhance collision safety performance.
In addition to Honda SENSING, which has been available since 2014, Honda also offers two advanced

learning for all people, regardless of time or location. We also promote initiatives to deepen learning fordriver assistance systems: Honda SENSING 360, which responds to accident scenes in all directions, andall people regardless of time and place.

Honda SENSING Elite, which aims to zero human error when driving.

In June 2023, Honda released the “Honda Driver Coaching” app in the U.S. for young people. This app
supports young drivers to develop safety driving behaviors through driving diagnosis and real-time voiceadvice. We are considering rolling out the initiative in emerging countries and plan to conduct
demonstration tests in the future.

Honda SENSING: For Further Popularization, Expanding Application to
Emerging Countries“Honda SENSING” is a system primarily designed to detect the front of the vehicle and includes pedestrians as

In April 2023, Thai Honda signed a memorandum of understanding with the Land Transport

detectable objects. It supports safe and comfortable driving, as well as accident avoidance. The N-BOX minicars

Department of the Thai Ministry of Transport on the development of a “Hazard Prediction Training” tofeaturing Honda SENSING technology, available in Japan, have demonstrated impressive results in terms of

prevent traffic accidents. This initiative aims to enhance the ability to predict potential dangers and tosafety. These vehicles exhibit an 82% reduction in rear-end collisions and a 56% reduction in pedestrianelevate awareness about traffic safety among participants in traffic. With this opportunity, Thai Honda will

accidents*1, showcasing the substantial effectiveness of this innovative technology in accident prevention. As ofprovide the knowledge on traffic accident prevention it has accumulated over 30 years to educate

2022, the sales ratio of new automobiles that are equipped with “Honda SENSING” has reached 99% in Japanprospective drivers and young people.

and the United States and 86% globally, with a cumulative total exceeding 14 million units.

To contribute to the development of laws and regulations, including the licensing system, and traffic

To reduce the number of fatalities in motorcycle

rules, we will continue to collaborate with international organizations, government agencies of various

traffic accidents, Honda is gradually rolling out

countries and other mobility industries.

“Honda SENSING” with a motorcycle detection
function. The vehicles to be fitted with thistechnology were rolled out in 2021, and the features
will be incorporated in all automobile models
worldwide by 2030. In addition, Honda aims to

Accident Reduction Effect of Vehicles Equippedwith Honda SENSING (N-BOX)
DecreasedbyDecreased
by

56%

82%

expand the application of advanced brakes such as“ABS” and “CBS” and highly visible and lighted lamps
to more models of motorcycles.

Honda Driver Coaching App (U.S.)

Rear-end collisions

Vehicle-Pedestrian collision

Target to Achieve Zero Traffic Collision Fatalities by 2050

Animated video produced by Thai Honda for the Land
Transport Department of the Thai Ministry of Transport

Target for 2030
Advanced Safety
Equipment
Application Rate

Automobiles in developing
countries*2
Honda SENSING 360

100%

Automobiles in emerging
countries*3
Honda SENSING

100%

Motorcycles in emerging
countries*4
Advanced Braking (ABS/CBS)100%*1 The difference in the number of traffic collision fatalities and injuries per registered vehicle between N-BOX vehicles
without AEB and vehicles equipped with Honda SENSING. Based on data from the Institute for Traffic Accident Researchand Data Analysis, according to Honda’s research.
*2 Japan, the U.S., China, Europe*3 India, Indonesia, Malaysia, Thailand, Brazil*4 India, Indonesia, Vietnam, Thailand, Brazil
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To Realize a Zero Traffic Collision Society | Safety Strategy

Honda SENSING 360: Aiming to Deploy All Automobile Models in Developed
Countries by 2030

“Honda SENSING Elite” is a system equipped with “Traffic Jam Pilot,” an advanced technology compatible

The omnidirectional safety and driver-assistive system “Honda SENSING 360” is a system to avoid imminent

with Automated Driving Level 3*2 (automated driving with conditions in a limited area), which is theaccidents or to further reduce damage by expanding the ability of the vehicle to detect and avoid the risk

world’s first automated driving system to receive type designation by the Ministry of Land, Infrastructure,of accident in all directions. A total of five millimeter-wave radars are installed on the vehicle: One at theTransport and Tourism in 2021. This system makes it possible to perform driving operations on behalf offront and one on each corner. This achieves 360-degree sensing.

the driver under certain conditions, such as when there is traffic congestion on expressways.

The five main functions of Honda SENSING 360 are Collision Mitigation Braking System for crossing

Honda SENSING Elite: Aiming Zero Human Error when Driving

Furthermore, we are advancing the development of a new technology for the next evolution ofvehicles at intersections and crossing pedestrians when turning right or left, Front Cross Traffic Warning,“Honda SENSING Elite.” This technology uses Honda’s unique AI technology, which grows with experience,

Cornering Speed Assist, Lane Change Collision Mitigation, and Active Lane Change Assist. Honda aims tolike a person, to recognize complex scenes and respond to complex environments, such as general roads,

expand the use of these functions to all automobiles in developed countries by 2030, starting from theenabling hands-off functions during traffic jams on main roads and driving support functions during

installation to the CR-V released in China in 2022. Furthermore, Honda is developing new technologies

merging and branching scenes at highway junctions, etc., to enable safe, secure and seamless travel fromthat evolve the Honda SENSING 360.

home to destination, including on main roads. These technologies are scheduled to be applied sequentially

Currently, new technologies are under development, including the Advanced Lane Change Assist Function
with Hands-off Function and the Advanced In-Lane Driving Assist Function to reduce the driving load; theDriver Emergency Support System to support deceleration and stop in the same lane when the driver does not
respond to operation requests from the system; the Exit Warning to detect and recognize vehicles approachingfrom the rear side while parked; the Driver Attention Warning and Collision Warning, In-Lane Collisionfrom the mid-2020s.
*2 Definition of automated driving defined by the Japanese government (based on SAE) is as follows: Under certain
conditions, the system monitors surrounding traffic conditions and drives on behalf of the driver.

Next-Generation HONDA SENSING Elite
Driver assistance on nonexpressway roads

Avoidance Assist Technology, Emergency Steering Support Technology, etc. We are engaged in thedevelopment of new technologies, including those capable of detecting driver conditions and predicting
potential hazards ahead, while offering assistance for avoidance. These technologies are being customized toaddress the distinct requirements of different regions and are scheduled to be progressively introduced from2024 onward. We aim to achieve enhanced safety measures by these technologies.

Parking in and driving out of ahome garage
Call forth at remembered location
Call forth from remote location

Level 3

Driver assistance for all
expressway driving solutions
Level 3 for all driving situations Technology
to be established by late 2020s+Level 3 in traffic jams

Honda SENSING 360 System Configuration〈360 System〉
Long-range
millimeter-wave radar
Detects the speed/distanceof distant obstacles

Mid-range millimeterwave radar
Detects the speed/distanceof nearby obstacles

Front sensor camera
Recognizes white lines/shoulder.
Identifies types of obstacles〈Next〉

Call forth while away from home and drop off
We aim to establish the technology, Level 4 in a limitedarea in the automated valet parking certified areas by
the latter half of the 2020s.

Antenna + ECU Maps*1

Mid-range millimeterwave radar
Detects the speed/distanceof nearby obstacles

Drivermonitoring camera

By integrating AI technology into cognitive and understanding
systems in complex public road environments

We aim to further reduce accidents in all scenarios.

*1 ECU：Electronic Control Unit

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To Realize a Zero Traffic Collision Society | Safety Strategy

Traffic Ecosystem: Collaboration, Development of Systems / Services
Honda has been developing various technologies, including deployment of the “SAFETY MAP,” which

vehicles, through telecommunications to predict risks before accidents occur and support accident

consolidates driving advice for accident-prone areas, locations requiring sudden lane changes, analysis of

avoidance.

data, such as sudden braking information from Honda vehicles, development of a system known as AACN

In 2023, as part of efforts to promote this Safe and Sound Network Technology, we will participate in the(Advanced Automatic Collision Notification), which automatically notifies fire departments andRoad-Vehicle Cooperation Demonstration Experiment being conducted by Central Nippon Expressway on acooperating hospitals from vehicles involved in accidents and utilization of connected vehicle technology

section of the Shin-Tomei Expressway under construction together with SoftBank Corp. This exercise aims toto estimate the probability of fatalities and severe injuries in the event of an accident.

verify use cases for risk prediction and information notification using information from connected vehicles

To achieve Honda’s target of zero traffic collision fatalities involving Honda motorcycles andand traffic infrastructure. Through these demonstration tests, Honda will identify issues before implementing

automobiles worldwide by 2050, it is essential to ensure the safety of all people, including vulnerable roadthe technology in society and use this information to innovate and develop. Honda aims to complete systemusers. To this end, Honda is further advancing its long-standing connected technologies and developing its

construction and effectiveness verification in the early 2020s and standardize the technology in the late

Safe and Sound Network Technology, which connects all traffic participants, i.e., people and mobility

2020s, with the aim of implementing the Safe and Sound Network from 2030 onwards.

Safe and Sound Network Technology

Use Case Image for Highway Driving
Information collaboration
platform
Roadside camera

Risk area
Risk area

4. Analyze risks

Risk area
Decreasedawareness

Decreasedattention
Risk area
information

Pedestrian
location

Detection
information fromother vehicles

Runaway
vehicleMotorcycle
detection fromother vehicles

2. Vehicle information(connected vehicles)

Road control center

ユースケ
ユースケース概要230
ユース
1. Vehicle information
ユースケース概要230
5. Risk information for(including unconnected vehicles)
ユースケース概要23030
surrounding area

3. Integrate information

Vehicle information
management

Roadside sensor

情報連携プラットフ【凡例】
RoadsidecameraDecreasedvisibility

情報連携プラットフォーム④リスク解析
情報連携プラットフ：非コネクテッド車両：コネクテッド車両【凡例】
情報連携プラットフォーム：コネクテッド車両【凡例】④リスク解析
③情報の統合情報連携プラットフォーム
道④リスク解析
：車両情報：非コネクテッド車両：コネクテッド車両：コネクテッド車両
【凡例】

【凡例】

Kindergarten /School children

Legend：非コネクテッド車両
: Connected vehicles: Non-connected vehicles：コネクテッド車両④リスク解析
③情報の統合: Vehicle information: Risk information on surrounding area
：周辺リスク情報：車両情報：非コネクテッド車両④リスク解析：車両情報③情報の統合：非コネクテッド車両：周辺リスク情報
：車両情報
：車両情報
：周辺リスク情報：周辺リスク情報：周辺リスク情報②車両情報（コネクテッド車両）②車両情報（コネクテッド車両）②車両情報（コネクテッド車両）②車両情報（コネクテッド車両）⑤周辺リスク情報②車両情報（コネクテッド車両）⑤周辺リスク情報⑤周辺リスク情報

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To Realize a Zero Traffic Collision Society | Safety Strategy

Ayato Yoneyama

Electrictrification Business
Development Operations
Motorcycle and Power ProductsElectrification
Business Development Unit
UX and Software Connected
Development Department Division
Software Core-technology
Development Department
After being involved in motorcycle
engine design, shifted focus to safetyrelated tasks in emerging countries.
Favorite motto“Today is the youngest day.”“Give it your all, regardless of theoutcome.”
Honda-ism which he has empathy“Light your own torch.”“Eliminate no play, no error.”Interview ––––––––––––Taking the Lead in Walking Down Paths yet Untrodden by Anyone
From an early age, my dream has been to contribute to mobility through engineering. While I’ve been
engaged in motorcycle engine design with the goal of bringing joy to customers through my products,
I developed a firm belief that “While Honda’s motorcycles expand possibilities in people’s lives, they also
lead to unhappiness due to accidents. If we don’t address this, can we genuinely provide happiness?” Thisconviction steered me toward safety-focused endeavors a few years ago. Primarily targeting emerging
markets like Thailand, I’ve been spearheading initiatives in accident prevention utilizing infrastructure
cameras and advancing technologies for safety driving education.
Safety is a critical domain for Honda, and as I embarked on new challenges, I began from the groundup, undergoing a process of trial and error. Until that point, I had always aimed to surpass others, but
I soon realized that there were limited problems I could solve alone. However, I acknowledged that
Honda has numerous associates with diverse expertise. I sought their help, breaking down barriers andreaching out across various internal departments. Everyone, faced with unexplored terrain, was eager tocollaborate, and I believe this enthusiasm resulted in outcomes exceeding our expectations.
I transitioned from the realm of engines to the world of software, with no prior experience, in order
to approach the safety domain from a fresh angle. The fear of failure often hinders us from embracing
new challenges. I firmly believe that forging new paths, even in areas uncharted by anyone before, is the
key to innovation. The software domain in the automotive industry is still in its early stages. Our goal is toset industry standards in this domain, making Honda a global competitor in the realm of software.

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The Evolution of Human Capital Management Human Capital Strategy
Human Capital Management Initiatives

We subsequently establish key goal indicators (KGIs) along with their target values as metrics for

Basic Policy for Personnel Management- Honda Philosophy

assessing the degree of accomplishment of human capital materiality. Additionally, we formulate an array

裏表紙

of human capital strategies, measures and Key Performance Indicators (KPIs) to showcase the attainmentof these target values as part of a coherent narrative.

Honda defines the principles of personnel management based on the Honda Philosophy. The key

KGIs and their associated KPIs are subject to consistent monitoring as part of the businessprinciples of this philosophy are to respect each other’s initiatives and individuality, to establish equalmanagement framework. Furthermore, we employ the Plan-Do-Check-Act (PDCA) cycle, allowing for

relationships and to foster trust among individuals. Our goal is to maintain a company where talented

periodic adjustments of indicators and target values, as well as the adaptation or inclusion of measures as

individuals with a strong intrinsic will to create a better society collaborate, enabling a broader range ofrequired.

abilities, talents and creativity to be fully utilized. Additionally, we aspire to become a company where thejoy of overcoming challenges can be shared, even in situations of differing opinions. To continue creatingproducts and services that surpass the expectations of our customers and society, we will develop a

Honda Human Capital Management Storyboard

comprehensive human and organizational strategy that encourages and supports the growth of

Honda Philosophy

individuals “driven by dreams and initiative,” empowering our associates to work vigorously at Honda.
Principles of Personnel Management
Initiative

Fundamental Beliefs, Company Principle and Management Policies

Respect for the Individual
Equality

Trust

Global Brand Slogan

Three Principles of Personnel Management
Respecting Initiative

Honda respects the individuality, creative thinking and judgment of eachassociate.

Ensuring Fairness

At Honda, every person should have equal employment opportunities.
An individual’s race, gender, age, religion, national origin and social or
economic status have no impact on the individual’s opportunities.

Encouraging
Mutual Trust

Honda and its associates should respect, trust and recognize each otheras individuals and make sincere efforts to fulfill our responsibilities.

The overarching theme guiding differentiation across the entire company is
Evolution of Human Capital Management

Direction of mediumand long-term initiatives

Human capital materiality

Activating associates’ intrinsic motivations andfostering the integration of diverse individuals

Direction of short- andmedium-term initiatives

Ensuring both quantitative and qualitative sufficiencyof human resources in priority business areas*

Human Capital Management Linked to Business Strategy:
A Defined Narrative
As a component of Honda’s human capital management initiatives, we have defined “human capitalmateriality” as encompassing issues that warrant close attention through human capital strategies. This
process involves intertwining these strategies with our business strategies.

KGIs

Target value for2025/2030

Key measures

Measure KPIs

When delineating human capital materiality, we engage in company-wide discussions about the
trajectory in which we should channel our efforts. These discussions encompass both the medium- tolong-term dimensions of the “evolution of human capital management,” a pivotal theme spanning theentire company, and the short- to medium-term aspects of fortifying our business strategy.

Understanding stakeholder expectations* Priority business areas: electrification, software technologies, new business, basic research, etc.

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The Evolution of Human Capital Management | Human Capital Strategy

Human Capital Management Story

KGIs to Achieve Human Capital Materiality and StrategyOriented Key Measures・KPIs

New challenges for people and theorganization

We have established targets for 2025 and 2030 by framing human capital materiality as

Vision for Human Resourcesin 2030
Cultivating individuals andorganizations thatconsistently embracechallenges on their journey
towards realizing their
dreams“activating associates’ intrinsic motivations and fostering the integration of diverse individuals” formedium- to long-term endeavors, and “ensuring both quantitative and qualitative sufficiency ofhuman resources in priority business areas” for short- to medium-term initiatives.
Anticipating the period beyond 2040, we will continue to conduct reviews of the indicators toensure effective management oversight.
For every target value, we are formulating human capital strategies and defining measurable
KPIs that contribute to the attainment of these objectives. Additionally, we are crafting plans toensure their realization. As we move ahead, we will regularly track the advancement of eachStrengthening the basis for
optimizing the utilization of
global management resourcesindicator and implement a system that facilitates prompt decision-making based on

2040

and
beyond2030

quantitative evidence.

2025



Human Capital Materiality

Activating associates’
intrinsic motivations andfostering the integration ofdiverse individuals

KGIs

Target Value for 2025

Target Value for 2030

Associates are highly motivated anddriven by goals, with their supervisors
actively supporting their endeavors

Associate engagement score

Percentage of positive
responses
50% or more

Percentage of positive
responses
60% or more

Synergy is optimized through the
integration of diverse knowledge

Proportion of female inmanagement positions

3 times increase compared to2020

4 times increase compared to2020-

Increase to 10,000 associates
in the area of software
technologies

Goals

Examples of KPI Measures
Annual training hours per person
Number of applicants for Challenge Open
Recruitment*1 and in-house recruitment● Number of applicants for IGNITION*2● Percentage of management training participants
●
●

●
●

Number and percentage of female employed
Number of female leader candidate pools umber of applicants in the area of softwareN
technologies
Number of expert managers● Skill visibility rate of human resources involvedin priority areas● Actual human resource matching (shifting ofresources)●

Ensuring both quantitativeand qualitative sufficiencyof human resources inpriority business areas

There are sufficient human resources inpriority areas

Sufficiency of human resourcesin priority areas

Resources are proactively invested in thedevelopment of human capital

Investment in the developmentof human resources in priority
areas

Attaining the highest global market standards*1 Challenge Open Recruitment: A personnel transfer system founded on open recruitment, aimed at kindling individual motivation to embrace fresh challenges
and ensuring optimal alignment of individual competencies and affinities with job roles.
*2 IGNITION: An in-house recruitment program that allows associates to utilize their individual ideas and take on the challenge of starting a new business.

●●● raining hours per person for reskilling program
TNumber of participants in reskilling programs byexternal organizations

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The Evolution of Human Capital Management | Human Capital Strategy

Honda’s Human Capital Strategy

Enhancing Corporate Competitiveness and Restructuring the Business Framework through the Optimal and EfficientUtilization of Human Capital
During a period “once in a century transformation” in the industry, Honda has transitioned its current businessstructure to accommodate diverse careers and work styles. Our commitment extends to bolstering individuals

landscape into a second founding period. This phase is centered on crafting human capital strategies aimed atand organizations that embrace the challenge of realizing their “dreams.” Furthermore, to foster structural“enhancing corporate competitiveness and restructuring the business framework through the optimal andbusiness reform from a human resources standpoint, we will persist in our endeavors to acquiring and shifting

efficient utilization of human capital.”

human resources, particularly in priority areas. This forms a component of our vision to achieve both

While valuing Honda’s core values that underpin corporate competitiveness, we will implement

quantitative and qualitative sufficiency. To enable shifting of resources, we will actively invest in humanprofessional talent development, creating environments that encourage practical application and establishing

resources to facilitate reskilling and implement measures to enhance proficiency in priority areas.

Human Capital Materiality
Activating associates’ intrinsic motivations and fostering the integration of diverse individuals
Associates are highly motivated and driven by goals,
with their supervisors
actively supporting their endeavors

Provision of opportunities and structuresto promote professional human resource
development and practice:· Expand opportunities for autonomous
learning and development· Create a climate and structure
encouraging challenge· Foster the next generation of leaders

Synergy is optimized through the integration ofdiverse knowledge

Promotion of diversity in careers andwork styles:· Diversify careers and work styles· Accelerate autonomous careers· Expand working period by improving
health and wellness

Creating people and organizations
that take on the challenge of realizing“dreams”:· Initiatives to revitalize the organization· Increase the number of Honda fans
· Maximize human resources through
HRDX

Ensuring both quantitative and qualitative sufficiency of human resources in priority business areas
There are sufficient human resources in priority
areas

Resources are proactively invested in thedevelopment of human capital

Acquiring and shifting human resources to fulfill human resource needs
to priority areas· Develop human resource portfolio· Establish new scheme to secure resources· Accelerate shifting of resources

Proactively investing in human resources in priority areas· Improve basic skills of all associates in priority areas· Expand reskilling through specialized programs· Programs to develop top management to strengthen competitive areas

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The Evolution of Human Capital Management | Human Capital Strategy

Activating Associates’ Intrinsic Motivations and Fostering the Integration of Diverse Individuals

Challenging with High Motivation and Goal-Oriented
Mindsets (Challenge to Dream), and backed by the Full
Support of Supervisors

We believe that the fundamental objective of diversity initiatives is “to generate novel business prospects andvalue by promoting the exchange of viewpoints among associates with distinct ideas.” Especially the

In order for Honda to deliver value to our customers, motivated by the dreams of each and every Honda associate, it
is imperative that we fully acknowledge and comprehend the global brand slogan as a shared philosophy. Thisphilosophy must then be reflected in our actions, central to our purpose and identity. By adopting this collaborative
vision as a foundational principle, we will be better equipped to tackle the challenge of creating new value through asequence of steps including “establishing ambitious transformative goals,” “embracing a spirit of experimentation,”“taking the lead in the pursuit of accomplishments,” “learning from others and consolidating diverse knowledge” and“delivering surprises, exhilaration, and joy.”In the pursuit of these objectives, we have formulated a new question for the engagement survey, aimed at
gauging the extent to which associates exhibit strong motivation and drive to realize their aspirations. Furthermore,
we have revised the engagement score calculation method to better articulate our intentions. We recognize thateach associate’s aspirations of striving toward their dreams require support from supervisors within the organization.
Consequently, we have infused this aspect into the engagement survey inquiries.

Undertaken Efforts
Improve associate engagement to enhance their motivation· Conduct an associate engagement survey· Develop company-wide measures to enhance associate
engagement
Challenging with highmotivation and goaloriented mindsets(challenge to dream), andbacked by the full supportof supervisors

Implement capacity-building measures to support selfimprovement· Investment in all associates to promote autonomous careerdevelopment and self-improvement· Promote the “Honda Lifelong Playground*”· Provide opportunities for associates to demonstrate their abilities(Challenge Open Recruitment and IGNITION)
Develop career programs that support autonomous growth· Strengthen two-way communication between supervisors andsubordinates· Conduct career interviews with career advisors

Synergy is maximized via
the integration of diverse
knowledge

Accelerate training and promotion of female associates· Training based on career plans· Conduct career interviews with career advisors

Synergy is Maximized via the Integration of Diverse
Knowledge
enhancement of female participation stands as a pressing concern that will consistently command ourendeavors. Without a doubt, we consider periods of business environment transformation as opportunities
to broaden the active engagement of females.
From a global perspective, we identify Japan as facing challenges in promoting opportunities for female
participation. We gauge this by utilizing the proportion of females in managerial positions as an indicator of
the issues at hand.
Furthermore, we will also shape our global diversity, equity and inclusion initiatives in accordance withthis recognition.
KGI

Target for 2025

Target for 2030

Associate engagement
score

Percentage of positive responses 50% or more

Percentage of positive responses 60% or more

3 times increase compared to 2020

4 times increase compared to 2020

Proportion of females inmanagement positions

Achieved Results for FY2023

Future Initiatives

 ssociate engagement survey score:A
3.48

Encouraging the challenge of “dreams” toward the realization of the global brand slogan· Develop measures to disseminate the global brand slogan throughout the company· Comprehensive review of the personnel system to stimulate associates’ intrinsic
motivations

 nnual training hours per person: 18
Ahours● Number of Challenge Open Recruitment
applicants/accepted applicants:
1,093/185

Development of learning and practice opportunities to foster professional human resources· Expand associates’ learning and practical experience based on a new knowledge creation model· Increase investment in business and associate-initiated training programs to acquire practicalknowledge based on the “Three Reality Principle”· Further expand opportunities to take on challenges (priority areas), including open positions· Develop an “IGNITION Studio” as a joint program with sponsors and outside experts

 umber of career interviews conducted:
N
2,667

Development of measures to strengthen management so that key transformations can beachieved· Develop training programs for managers to raise their management skills· Provide managers with timely feedback on associate engagement levels in their own departments

Number of career interviews withfemale associates: 490

Further acceleration of female participation· Increase the number of females in management positions· Promote the development of younger associates in cooperation with the project’s goals

●

●

●

●

* Honda Lifelong Playground: An internal community that enhances personal growth by fostering connections among like-minded colleagues who learn together and undertake the task of creating new value.

Honda Report 2023

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Value Creation Story

5 Key Themes

Business Strategy

Governance

Related Data

The Evolution of Human Capital Management | Human Capital Strategy

Ensuring both Quantitative and Qualitative Sufficiency of Human Resources in Priority Business Areas

Acquiring and Shifting of Human Resources to Fulfill Human Resource Needs in Priority Areas
Another significant initiative crucial for advancing our business success, we will emphasize the quantitative

In order to actively monitor human resource sufficiency and enact prompt measures, we will establish

and qualitative sufficiency of human resources aligned with our business portfolio. This encompasses

human resource portfolios for each sector. As an initial stage, we have developed a portfolio for the realm ofpresenting pivotal suggestions to bridge gaps, which will involve a comprehensive evaluation of oursoftware technologies. This portfolio identifies the reskilling targets, skill enhancement needs, shifting ofbusiness plan.

resources and the necessary count of external hires.

Human Resource Management for Business Strategy
Highsoftwarevalue
creation

Priority areas =New areaelectrification,αsoftwareNew area technologies,β
new businessand basic
Businessresearch,
X
etc.
New area
Business

BusinessAHigh
hardwarevalue
creation

Existing
business

BusinessZ

Acquire external
personnel
Importance and scarcity of skills

Yγ

Initiatives start fromthe area of software
technologies

Business Business
C
B

Deeper knowledge

Human Resource Portfolio in Priority Areas

Bring it in-house

AlliancesUtilize
external
resources

Knowledge exploration

Securepersonnel
proactively fromboth within andoutside
Honda

Reskilling andreassignmentof personnel

Proactive investment in
human resources inpriority areas

In our pursuit of acquiring skills within software as our priority area, we are set to undertake anunprecedented level of human resource investment. Furthermore, alongside the company-wide reskill
program, we are poised to substantially broaden specialized skills enhancement initiatives. This expansion
aims to enable the creation of innovative value.

Shiftingofresources

KGI
The company maintains sufficient humanresources in priority areas

Investment in the development of humanresources in priority areas

Target for 2025

Target for 2030-

Increase to 10,000 associates

Attaining the highest global market standards

Need to establish skills in-house

Undertaken Efforts

Acquiring and shifting of
human resources to fulfill
human resource needs inpriority areas

Proactive Investment in Human Resources in Priority Areas

Establish personnel management to ensure quality and quantity· Shift human resources to priority areas for achieving carbon
neutrality· Conduct experience and skills surveys for all associates

Achieved Results for FY2023

Future Initiatives

Number of personnel shifted to priority
areas: 70● Experience and skills survey conducted:
35,825 respondents

Formulate human resource portfolios and implement shifting of resources for each business· Formulate human resource portfolios and visualize personnel sufficiency in the areaof software technologies· Visualize software skill map· Promote shifting of resources by establishing a personnel matching scheme between
business areas●

Establish and implement measures to acquire the best humanresources for the talent we seek
· Recruit human resources from outside Honda for the area ofsoftware and connected technologies· Disseminate the attractiveness of Honda associates via our owned
media “Me and Honda, Career*”●Start training programs in priority areas· Mandatory acquisition of IT Passport for new associates· Conduct Python training for all associates in the research area

Software skill development program● Number of programs: 85● Number of participants: 1,204

Number of mid-career recruits: 476

Secure resources by establishing new schemes· Increase the number of recruits to strengthen the area of software technologies· Expand recruiting methods, such as direct sourcing· Consider broader employment options not limited to existing employment systems(work hours, transfers) and work styles

Expand shifting of resources and reskilling measures in priority areas· Conduct a “software and electrification e-learning program” for all associates· Efforts to secure time for reskilling· Conduct intensive programs with external organizations for those subject toreskilling* Me and Honda, Career: Owned media communicates the appeal of Honda associates through our dedicated recruitment website and various social media platforms.

Honda Report 2023

46

Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

The Evolution of Human Capital Management | Human Capital Strategy

Career Growth, Learning, Practice for Cultivating
Professional Personnel’s Independent Development

Defining Common Capabilities and Implementing Customizable Learning Programs

Offering Opportunities for Associates to Independently Showcase andRefine their Abilities

The “Challenge Open Recruitment” initiative provides voluntary opportunities to showcase and apply one’s
abilities, and communities like “Honda Lifelong Playground,” aimed at cultivating new networks, have

To transform our associates into professionals competent not only within Honda but also beyond, we havebeen instrumental in fostering connections among peers, facilitating learning and creating novel value.

outlined the common capabilities essential for business acumen. In alignment with this goal, we have

Through these endeavors, we have been providing chances to partake in challenges and have observed afurnished a guidebook that outlines strategies for nurturing and refining each capability, complemented

certain degree of achievements.

by e-learning programs to bolster associates’ self-driven and independent endeavors.
Furthermore, we intend to advance our learning management system, inaugurated in FY2022, into an
all-encompassing platform that provides augmented learning prospects and visually tracks competency
development progression.

Empowering Autonomous Career Development through Honda’s“Knowledge Creation Model”

A knowledge creation model has been devised to encompass individuals’ aspirations and interests, guiding them inaccumulating formal knowledge and acquiring fresh skills. These initiatives aim to empower associates in broadening

The purpose of the Challenge Open Recruitment is to promote personnel transfers
Purpose ofdriven by an associate’s own will, thereby igniting individuals’ readiness to undertaketheChallenge endeavors. This initiative aligns individual competencies and affinities with job roles,Openfostering an environment characterized by freedom, dynamism and audaciousness,
Recruitment
with the overarching goal of “cultivating delightedness.”
Enhance one’s
careerindependently
2-way process

Pursue an open
position(self-selection)

Personnel change

New career(new opportunity)

FY2023 result
Number of Challenge
Open Recruitment
applicants/accepted
applicants

1,093 persons/
185 persons

their networks and prospects as they embark on novel challenges, embrace emerging opportunities, enhance theirmarket value and ultimately uncover new aspirations. Grounded in this model, we
will formulate measures that bridge individuals with opportunities for tackling new
endeavors, foster the establishment of networks and capture/visualize
skill sets. By intertwining the selection and deployment of associates through the

FY2023 result
Annual training hours
per person

18 hours

personnel system and evaluation processes, we will enhance the associate
experience and provide a visual representation of key outcomes.

Overview of Challenge Open Recruitment

To further amplify the avenues for associates to showcase their capabilities, we intend to implement an
open position system in priority areas. This system will welcome applications from both internal and external
individuals, consequently broadening the scope for associates to embrace novel challenges.

Ac

Input of

Acquisition ofexpe
ion of opposan ke on challe rtun
p
ng
x ta

isition of oppor
Acqu
tun
itie
s(
tra

Personal
dreams andpassions

market value
idual
div
f in
to
en

ortunities
opp
nd
sa

Expa
ns
al
form kn

ce

etw
or
k

of network
ion
ledge
ow

Providing opportunities
for challenge

e th
nc
rie
to
es
iti s
e

Expanding andcirculating theexperience ofindividual associates

E

Honda’s new knowledge
creation model

ms in a newew drea
env
of n
iron
ery
v
me
o
o
n
d
s
e
sc
k
nt
s
i
a
l
i
l
b
s
and
n)
D
o
i
t
imp
ec
l
e
ro
/s
r
v
t
em
skills hrough e
fe
n of
ns
xpe
tio
rie
isi
n
qu
rough new n

Networking
supportCommencing in FY2024 (April 2023 - March 2024), we are in the process of establishing the “IGNITION
Studio,” which will serve as a human resource development initiative dedicated to fostering new
businesses. By
aggregating theinsights garneredfrom the new
business creation
program ”IGNITION,”

Planning of opportunities,
utilization of informationand visualization ofcompany performancein combination with

Selection and assignment
based on personnel
system/evaluation

Foster an entrepreneurial spirit

Acquire the skills to generate empathy

the expertise of
external professionals,
including venture
capital, this Studio is

Gathering andvisualizing skills

Enhance “mind and capability” for business development

poised for creating
new businesses.

・・・
Learn the basics of startup
entrepreneurship
Develop team-building
skillsIdentify customer challenges
through training sessions
Learn how to get more andbetter customer information

Develop pitch-making
and training skills
Learn how tointerview customers

Personalized support,
mentoring, etc.
from Honda’s
IGNITION & Design division

Strengthening the “mind and capability” of Honda associates forbusiness development by integrating the knowledge acquired from the
IGNITION program and the expertise of venture capitalists

Honda Report 2023

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Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

The Evolution of Human Capital Management | Human Capital Strategy

Nurturing and Selecting Next-Generation Leaders Embracing our Corporate Philosophy

Advancing Global Talent Management

We have established and are actively pursuing our vision of “Matching the Right Talent to the Right
Position,” wherein individuals’ abilities and aspirations are cultivated, ensuring that everyone has anequitable opportunity to take up pivotal roles and steer Honda on a global scale.

Developing a Global Competency Model (GCM)

To methodically and consistently cultivate and appoint capable and motivated personnel, irrespective of

individual attributes such as nationality and gender, we have formulated a Global Competency Model(GCM). This model outlines the behavioral traits essential for a global leader, upon which we are devisingvarious initiatives. The GCM serves as the basis for shaping leader development strategies and determining
the criteria employed in human resources evaluations. Additionally, we are compiling information about
the global talent pool we necessitate. By specifying the experiences and capabilities anticipated fromindividuals assuming significant global roles, we aim to refine the alignment between human resources

Jitender Teckchandani

Lead of Global Learning &Development,
Talent Management Department,
Human Resources Division
After working at HCIL, Honda’s local
subsidiary in India and at Asian Honda,
the regional head office for Asiapacific, he assumed his current positionin Japan. He has been consistently
involved in various aspects of humanresources for diverse set of associates
across different countries.
Favorite motto“Be Simple & Honest”“Compete with yourself and not withothers”
Honda-ism which he has empathy“Transparency and fairness”“Challenging spirit”

and the talent criteria we have set, enabling more strategic nurturing of next-generation leaders.

Interview ––––––––––––

Reorganizing the Talent Board

To expedite conversations regarding the advancement of next-generation leaders, we introduced a new

Creating a Culture where Diverse Talents from Around the World
Influence One Another and Collaborate for Successworking group in 2023 alongside the existing Global Talent Board. Furthermore, we have revamped the

My 20 years at Honda have been filled with numerous positive experiences that have shaped my career

Talent Board for each business unit and function to initiate comprehensive discussions across the company.

alongside diverse members, including exceptional leaders from different countries. This has allowed me

Cultivating Next-Generation Global LeadersSince 2021, we have been providing our Global Leadership Programs (GLPs) in alignment with the GCM.
These programs are tailored for various job levels, and annually, participants are selected from all regions totake part in these initiatives.
Additionally, we have initiated the development of human resources in each region, guided by the
GCM principles. This encompasses fostering the growth of potential leadership candidates on a global scale.
Global Competency Model eizes change
SShows the way to the
future● Has a global viewpoint● Makes decisions withcourage● Seeks new challenges● Perseveres to the end● Believes in people● Overcomes our past
Limitations●

GeneralManagers
DivisionManagers
Subsection
Managers

to grow as a professional.
In India, job changes are common, yet I chose to continue my career at Honda for primarily
two reasons. First, there were regular opportunities to engage in fresh, challenging and stimulating
work, learn from them and grow. Second, there was a platform to practice Honda Philosophy. For
many companies, their guiding principles may be merely words on paper. However, at Honda, Honda
Philosophy genuinely serves as the guiding light for all actions. In a positive and stimulating work
environment, each associate is encouraged to freely showcase their abilities. Equality prevails, regardless

Overview of the GLPs●

and life. During this time, I’ve had the opportunity to be involved in various aspects of HR, working

GLP-Transformation
Complete one’s foundation
as an executive
Final brush-up
GLP-Exploration
Form a principle as a next
generation global leader
Nurturing leaders
GLP-Discovery
Form a basis as a
global leader
Seeding leaders

Global Leadership
Programs
Number ofparticipants since
FY2022313

Number of nonJapanese participants

164

of position, even in minor aspects like work attire, cafeteria and workplaces. Colleague relationships arebuilt on mutual trust and respect, encouraging everyone to take initiative.
While Honda continuously strives to create an environment where associates thrive and grow, I
believe it’s essential to enhance the diversity of talents, including key global positions. The collaborationof diverse talents on a global scale enables us to incorporate a comprehensive perspective into crucial
management decisions. Ultimately, this leads to offering products and services that align with the needs
and preferences of customers worldwide.
My dream is that every associate in Honda is empowered to reach their full potential and contributeusing their unique talents to the organization’s success.
Honda Report 2023

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Business Strategy

5 Key Themes

Governance

Related Data

The Evolution of Human Capital Management | Human Capital Strategy“Waigaya” Culture to Foster Interactive Communication

Becoming a Company where each Associate can Work to their Fullest Potential in a Healthy and Safe Manner

Honda Heart CAMPFIRE

Honda’s Health and Productivity Management“Waigaya” for Direct Exchange of Opinions with the CEO

Initiatives Taken for Health and Productivity Management“Honda Heart CAMPFIRE” is conducted to facilitate participants’ comprehension, empathy and alignment

Since its founding, Honda has remained dedicated to its associates’ “health”

with company-wide announcements pertaining to the global brand slogan and other management policies.

and “safety.”

This event features the CEO elucidating the context and rationale behind these aspects.
Launched in 2022, the Honda Heart CAMPFIRE has welcomed over 3,800 participants thus far.

Our objective is to foster an environment where all associates canoperate at their full strength, within a mentally and physically secure andAdditionally, the accumulated view counts of Honda Heart CAMPFIRE archive have surpassed 43,000 times.

healthful setting. Guided by the core message, “Persistently pursue HealthGoing forward, we will intensify efforts to foster a deeper understanding of Honda’s vision by enablingand Productivity Management and enhancement, as individual strengths

interactive engagement with more associates. This will be achieved by expanding the network of Honda

thrive when one is in good health,” Honda champions a distinctive approach

Heart CAMPFIRE satellite sites at business locations and establishing online connections with overseas sites.

to health management built on mutual trust. In alignment with thisphilosophy, associates take proactive steps while the company provides the

Honda HeartCAMPFIRE

necessary infrastructure to bolster such endeavors.

(Implemented eight times asof the end of June 2023)

Company
Improvementof the work
environment

All associates
contribute

Number of applicants:

Workplace

Focus on individual
associates

Results of efforts in
FY2023

3,810
Archive views:

43,117
Honda Heart CAMPFIRE (Waigaya with the CEO)

Associate

From protecting toshaping healthInnovation

Health andProductivity
Management
Well-being

Results of efforts in
FY2023

Progress Status
Concerning the Five
Health Management
Indicators(Percentage of Associates
Demonstrating
Improvements in Four or
All Indicators)

41.9%

Stress checkexamination rate

92.9%

Average monthly
overtime hours(labor union associates)

18.64 hours

Total working hours per
associate(labor union associates)

1,974hours

Average uptake rate ofpaid vacation days(labor union associates)*including previous year’s
carryover uptake

Direct Communication among Operating Executives*

102.19%

Sharing Values and Forging Connections with Leaders

In our pursuit of implementing and accelerating transformation, we convene a monthly “on-site meetingwith operating executives.” This gathering offers an avenue for executive leaders and the CEO to engage indiscussions and exchange values. In addition to sharing the content of significant discussions such as
corporate management deliberations, we also foster the exchange of opinions to reinforce shared values.
Furthermore, we organize an “Operating Executives’ Waigaya” to foster connections among leaders.
During this event, participants are grouped to deliberate on crucial themes and subsequently present theresults of their discussions. It is our aspiration that the relationships cultivated through the “Waigaya” will
propel additional reforms and cross-divisional collaborations.
* Operating Executive: Under the direction and supervision of management, this position serves as the head of operations
for departments and critical locations, playing a pivotal role in the company’s operations.

Visualizing the Five Behavioral Indicators for Health Maintenance and Enhancement

The Ministry of Health, Labour and Welfare has identified “nutrition and dietary habits,” “physical activity andexercise,” “rest,” “alcohol drinking,” “quitting smoking” and “maintaining good dental and oral health” asessential lifestyle habits to uphold and enhance the health of the Japanese population. Honda hasestablished the subsequent five factors as health action indicators based on the outcomes of associates’
health evaluations: (1) rest, (2) nutrition, (3) exercise, (4) quitting smoking and (5) alcohol drinking. Honda
aspires for associates to recognize these indicators and proactively manage their health.
Honda Report 2023

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Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

The Evolution of Human Capital Management | Human Capital Strategy

Enhancing Participation of a Diverse Workforce to Foster Innovation

Leveraging the Activities of Diverse Individuals to
Maximize Honda’s Collective Strengths

Yasuko Matsuyama

Initiatives for Expanding Female Participation

Since 2015, Honda has positioned and advanced workforce diversification as a fundamental company-wide imperative
to harness the collective capabilities of its workforce. In January 2015, we established the Diversity Promotion Office, a
dedicated entity for broadening the diversity of Honda’s workforce. In Japan, ourResults of efforts in
FY2023

initial focus was on amplifying female engagement within the company. We
considered the initial three years, as a fundamental period to cultivate awarenessabout female participation at Honda. Throughout this period, our primary emphasis
was on promoting female involvement, executed through three core pillars: “Raisingawareness and cultivating a supportive work culture,” “Nurturing careeradvancement” and “Establishing a conducive environment and systems.”

Number of careerinterviews with female
associates

490

Cultivating an Organizational Culture that Harnesses the Strengths ofDiverse Individuals<Operating Executive>
Corporate Promotion Division,<Head>
Corporate Communications
Supervisory Unit, Corporate
Communications Unit
Honda Motor Co., Ltd.
<General Manager>
Corporate Communications Division,
Corporate Communications Unit,
Corporate Strategy Operations,
Honda Motor Co., Ltd.
Favorite motto“Light your own torch.”
Honda-ism which she has empathy
Commitment to “A00*”

Interview ––––––––––––

diversity, equity and inclusion. Founded on the belief that diversity pertains to all associates, we have progressively

Transforming Diverse Perspectives of Diverse Talents into Honda’s
Driving Forceextended the purview of our diversity and inclusion initiatives, guided by an extensive roadmap.

I joined Honda with the aspiration to work alongside those who resonate with Honda’s corporate culture

We consider the period commencing in 2018 as marking an advancing and broadening phase in the pursuit of

On December 7, 2022, Honda hosted an event centered on the pivotal policy topics of “Male Involvement inChildcare” and “Female Health Matters.” This event

relations, dedicating myself fully to addressing Honda’s challenges at each stage.

underscored Honda’s continuous commitment to fostering

My first appointment as a project leader was in the sales department for the compact car “LIFE,”

diversity within its workforce and establishing an environment

primarily targeted at female customers. I meticulously studied the needs revealed through market researchthat optimally leverages the strengths of a diverse range ofand leveraged my sensibilities to propose ideas for designing the ideal car. Additionally, I suggested

individuals. The company event featured presentations frompromotional tools that would allow customers to enjoy the excitement of choosing a car, and it was truly

experts and panel discussions that brought together both

Panel discussion with Mr. Tetsuya Ando (NPO Fathering
Japan), Sputniko! (Cradle Inc.) and our associates

specialists and associates.

Strengthen inclusivity efforts for all associates
Reform work climate and work style

Promote diversity management

Build awarenessAccelerate initiatives for work style reform
Expand systems to balance work and child/nursing
care

Achieve a well-balanced work stylehumanity that Honda has upheld aligns perfectly with the essence of diversity appreciation.
For Honda to continue fostering creativity, the diverse perspectives of diverse talents are essential. Thiseasily voice their opinions and to create a workplace environment where work and life can be balanced
without worry.
Honda has a richly inherited philosophy, and countless activities and stories have arisen from

Expand female participation

Increase opportunities for experienced associates

Build awareness

Advance the employment of people with disabilities

Create a supportive environment and systems

Support LGBT associates

2018

within the company were still relatively few, yet my opinions were always taken seriously and respected.

is why it’s crucial to foster a culture and atmosphere where every associate with a diverse background can

the diverse associates who work passionately. I aspire to make these known widely and have people
think, “Honda is a wonderful company.” My current dream is to increase Honda’s fan base throughcommunication efforts, sharing the stories, and contribute to achieving this vision.

Support career building

2015

rewarding to receive positive feedback from both customers and dealers. At that time, female leaders“The idea before us treats everyone equally, regardless of gender, age, or position.” The spirit of respecting

Overview of Efforts to Foster Diversity within Honda’s Workforce
Issues and Needs
Identified for All
Associates throughFemale Participation
Expansion Initiatives

and philosophy. Since then, I have gained diverse experience in marketing, product planning and public2025* A00: the first thing discussed when a Honda project is launched,“what kind of world is this work trying to realize?”

Honda Report 2023

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5 Key Themes

Business Strategy

Governance

Related Data

Creation of Innovative Technologies Challenges in New Fields
Furthermore, in order to ensure that the novel technologies and next-generation mobility resulting
from ongoing research contribute meaningful value to society, it is imperative to evaluate the feasibilityof our businesses and products. With this objective in mind, we have instituted a “Technological Strategy

Exploring Unknown Fields toAchieve Further Growth

Meeting” comprising both management members and technical experts. This forum serves to foster seamlesscoordination between our technological and business strategies, consequently establishing a framework forthe efficient conversion of developed technologies into value.

Allocation of Resources to Fundamental Research

Fundamental research is a continuous process of trial and error that demands unwavering effort. It requires
Managing Executive Officer
Chief Officer, Corporate
Strategy Operations

Manabu Ozawa

substantial time and extensive resources before these efforts manifest as products ready for introduction to theworld. Nevertheless, Honda has consistently embraced the ethos of “trying first” and has persistently pursued
fundamental research. This approach has yielded captivating products like the HondaJet and the humanoid robot
ASIMO, which have astounded and delighted people globally. Throughout different eras, Honda’s driving force
has consistently been the “pursuit of new technologies.” The new value stemming from this pursuit shapes theAdvancing Innovation Management
Enhancing the R&D Structure

forthcoming generation of Honda products. Committed to perpetual advancement, we engage in fundamental
research every day.
To bolster this approach, we have allocated 5,000 personnel to Honda R&D and secured a stable annual

We are committed to improving our innovation management, driven by our belief that the development ofresearch budget of 100 billion yen for fundamental research. While this constitutes a substantial investment evencore technologies lays the groundwork for sustainable business and competitiveness. This commitment aligns

on a company-wide scale, it is through such determined resource allocation that we lay the foundation for creatingwith our values of “Transcend” and “Augment,” guiding us towards their realization.

new value. This dedicated allocation of resources is intended not only to support the development of carbon-neutral

From 2019 to 2020, Honda’s research subsidiary, Honda R&D Co., Ltd., transferred its producttechnologies related to the “five key factors,” including hydrogen utilization and sustainable materials, but also todevelopment functions in the motorcycle, automobile and power products businesses to Honda Motor Co.,nurture various elemental technologies that will underpin “the joy and freedom of mobility.” Therefore, in addition

Ltd. This strategic move allowed for a more focused approach to fundamental technology research, aimed

to advancing carbon-neutral technologies, we will steadily advance the accumulation of technologies to create

at long-term value creation. To further enhance the realm of mobility, Honda R&D is allocating additional

novel value. We will persist in proactive resource investment to maintain a high level of competitiveness in advanced

resources to areas such as advanced technology research, power unit exploration and materials investigation.

technologies and to establish a sustainable bedrock for our business.

The company has also identified several technology domains warranting deeper exploration, including
new mobility, robotics, next-generation energy, including hydrogen utilization, batteries, intelligence

Initiatives in the Areas of Fundamental Technologies

基礎技術領域の取り組み

technologies/AI and sustainable materials. Leading experts in these domains are spearheading Honda’s
technological development, with the goal of creating innovative value.
Furthermore, the Honda Research Institute, a subsidiary of Honda R&D, has established facilities in Japan,
the U.S. and Europe to delve into computer science and other cutting-edge advanced technologies. The

Augmentation of the value of mobility
IoT/Connected

AD/ADAS

Institute collaborates in joint research initiatives with diverse institutions worldwide, aiming to synthesize
and leverage knowledge on a global scale.
Within this framework, Honda is applying novel technologies developed in each technology domain
to create captivating next-generation mobility solutions capable of delivering unprecedented value

Application of
intelligence technologies

Research into next-generation mobility

Carbon neutrality of power units

Key Factors

Advancement ofbatteries

Resource circulation

Energy management

Sustainable materials
Utilization of hydrogenacross various fields including sea, in the air and in space. Specifically, ongoing projects encompass the
Honda eVTOL, the Honda Avatar Robot and ventures in space exploration. Drawing upon Honda’s coretechnologies—spanning combustion, electrification, control and robotics—we are poised to realize “thedelight of expanding the horizons of human potential.”

Secured an annual budget at the 100 billion yen levelfor fundamental research activities and Honda R&D

Honda Report 2023

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Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

Creation of Innovative Technologies | Challenges in New Fields

Enhancing Technological Development via Open
Innovation

IGNITION: A Novel Business Incubation Program Bringing
Shape to Associates’ Ideas and Aspiration

To uncover a diverse range of promising new technological concepts from across the globe and nurture“IGNITION” stands as a Honda endeavor aimed at birthing fresh businesses. It operates as an internalthem into solutions with broad societal impact, Honda vigorously champions open innovation withsolicitation program that empowers Honda associates to harness their inventive concepts and undertake

startups in conjunction with its proprietary core technology research.

the exciting pursuit of launching new ventures. The program took root at Honda R&D in 2017 and, as of

Globally, Honda has expanded its “Honda Xcelerator” program to engage with startups. The initiative
operates in countries like Japan, the U.S., Israel and some countries in Europe. Building upon this initiative,

2021, has grown to encompass the entire organization. Presently, all associates have the opportunity toembark on the journey of transforming their notions into tangible forms of new value.

Honda has introduced the “Honda Xcelerator Ventures” program to enhance its involvement with startups

IGNITION operates in collaboration with venture capital firms. During the evaluation process,by incorporating investment capabilities. This program aims to fortify our ability to actively foster businessproposals undergo rigorous scrutiny, with the proponents receiving guidance from an investor’s

partnerships and investments with promising startups, supported by an annual budget of approximately

standpoint. An internal task force also provides support to associates, aiding them in enhancing the

10 billion yen. We have already initiated investments in startups concentrating on cutting-edge

feasibility of their proposals. The first two business ventures that emerged from IGNITION, namely

technologies such as AI, synthetic fuels, battery recycling and nuclear fusion power generation.

Ashirase, Inc. and Striemo, Inc., were established in April and August of 2021, respectively, following a

Moreover, in 2023 April, Honda established, Honda Innovations Co., Ltd., in Japan to take on
responsibilities for its global corporate venture initiatives. Aligned with Honda’s overarching corporate
strategy, we have established a corporate structure that enables us to promptly invest in and collaborate
with startups possessing innovative technologies and ideas.
Looking ahead, Honda will persist in actively promoting startup investments and collaborating withbusiness partners to expand the community of individuals who share Honda’s vision of “becoming the

meticulous assessment procedure. Subsequently, SmaChari was introduced in March 2023 as an internalbusiness venture.
The core aim of IGNITION is to nurture distinctive concepts from a diverse pool of human resources,
allowing Honda to swiftly address societal challenges and forge novel value for the global community. Byfurther propelling this initiative and connecting innumerable unique ideas with the exigencies of society,we aspire to deliver an even wider array of value to a broader spectrum of customers.

“power” that supports people around the world who are trying to do things based on their own initiative.”
Through these endeavors, we endeavor to harness the potential of the myriad ideas rooted in “dreams,”
ultimately striving to materialize groundbreaking and captivating value creation.

SmaChari

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Business Strategy

5 Key Themes

Governance

Related Data

Creation of Innovative Technologies | Challenges in New Fields

Value Creation through Intellectual Property: An Investmentin the FutureIntellectual property stands as particularly crucial resources that play a pivotal role in augmenting corporate value
and pave the way for future advancements, spanning 5 to 10 years ahead. Honda’s strategic vision revolves aroundleveraging intellectual assets as a potent tool to underpin a sustainable future and propel business expansion. In its
current phase, characterized as the “second founding,” Honda aspires to evolve into an enterprise capable of forging
new growth trajectories and fostering innovative value creation. To propel this transformative journey, we havechosen five key factors as our focus areas.
Honda has established KPIs to achieve competitiveness in these focused technologies, and is executing a value
creation process that incorporates analysis using intellectual property information (Intellectual Property Landscape, IPL).
Furthermore, aiming to accelerate the alignment between technological strategy and intellectual property

a company’s current competitiveness, (2) pinpointing essential foundational technologies to enhance competitiveness and(3) unveiling the requisite technological and IP strategies to sustain and fortify competitiveness for future.
IPL Categories

Main Purpose

Development Proposal

Initiation of New Technology
Proposals

Actions·E arly Development Propositions for Essential
Technological Development· Synergistic Collaboration with Startups

Evaluating Technological Dominance · Competitive Analysis Across Value Chains
and Identifying Core Technologies · Establishing Competitive Advantage through KPI SettingCompetitive Analysis

IPL-Driven Strategy Update Cycle

We will update our corporate and technological strategies through these two types of IPL, enhancing the
precision of our strategies and strengthening our competitive advantage.

strategy in the formulation and execution of corporate strategy, the Intellectual Property division was placed under the
Corporate Strategy Operations starting from April 2023. We are strengthening the strategic role of the intellectual

STEP 4

Corporate andTechnological
Strategies
Updateproperty department, including its participation in the Technological Strategy Meeting, which formulates medium- tolong-term technological strategies.
Ratio of Patent Applications in Focus Areas and Existing Technology Areas(%)
100

KPIs Set to Establish Honda’s Competitive
Advantage

Focus Area

80

Key
factors

60
40
20
0

Existing Technology Area
2015

2016

2017

2018

2019

2020

2021 (Year)

Resource Circulation

STEP 2

STEP 3IPL

R&D
IP Creation

IPL
Variance
Analysis

Increasing
Corporate
Value

AD/ADAS
IoT/Connected

Strategic Utilization of the IPL
For enhancing competitiveness in the focus areas, we have identified priority technology areas in addition to five
key factors. Honda adopts an approach of advancing the targeted technology creation, through a comparative
analysis of technological advantages using IPL.

IPL Categories

There are two categories within the IPL framework. First, the development proposal category involves a meticulous

Development Proposal

STEP 1

Carbon Neutrality of Power Units
Energy Management System

Competitive Analysis

STEP 1 IPL

Through the IPL, we visualize both Honda’s current technological competitiveness and the desired state,
enabling the establishment of necessary KPIs to attain the targeted level of competitiveness.

STEP 2 R&D (IP Creation)

As R&D progresses, intellectual property is generated as a result, bringing us closer to the envisioned
outcomes.

STEP 3 IPL (Variance Analysis)

In this phase of the IPL, we scrutinize the progress in both our own and our competitors’ technologicaladvancements. This assessment guides the monitoring of KPI attainment, a pivotal step in augmenting
our technological supremacy. Insights gained from the assessment, along with required measures, areassimilated into our corporate and technological strategies. These measures may encompass development
proposals.

STEP 4 Update of Corporate and Technological Strategies

Guided by IPL insights, our corporate and technological strategies are revised, fostering the technologicaldevelopment that heightens strategy precision and elevates competitiveness. This iterative cycle begets
additional intellectual property, translating into future value creation.

exploration of untapped technological realms. This encompasses the identification of burgeoning or nascenttechnologies, an appraisal of their future potential and competitiveness, and the formulation of development andbusiness proposals. Should these proposals demonstrate value, they are integrated into our corporate and technologicalstrategies.
Second, we have the competitive analysis category of IPL. This variant serves three fundamental purposes: (1) discerning

As described above, the strategy update cycle utilizing IPL has become a crucial process for Honda tocontinuously create corporate value and maintain competitive advantage. Starting with these five key factors,
Honda is applying them to strengthened technological areas, setting the creation of competitive intellectual
assets as a KPI and engaging in the pursuit of new value creation.
Honda Report 2023

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Business Strategy

5 Key Themes

Governance

Related Data

Creation of Innovative Technologies | Challenges in New Fields

Honda’s Hydrogen Ecosystem
Among the five key factors that Honda focuses on, regarding the carbon neutrality of power units, in addition to
the battery-related efforts mentioned in the “Electrification Business Strategy” (➡p.15), Honda is strengthening its
efforts towards commercialization by positioning “hydrogen,” which is anticipated as a clean energy source, as thenext-generation energy.
Honda has engaged in hydrogen technology and fuel cell vehicles, predating its competitors by a significant
margin since the late 1990s. Commencing with the R&D of fuel cells, which convert hydrogen and oxygen into
electricity, we have progressively enhanced performance while systematically addressing usability challenges.
This includes refining fuel cell dimensions, reducing costs and enhancing durability. The ensuing iteration offuel cell technology, developed in collaboration with GM since 2013, will be integrated into the forthcoming
generation of FCVs. Our intent is to expand the reach of this core technology—our next-generation fuelTakashi Mochizuki

Department 3
Energy Unit Research andDevelopment Division
Innovative Research Excellence,
Power Unit & Energy
Engaged in research anddevelopment of hydrogen fuelcells “FC Stack.”
Favorite motto“Listen carefully to each person’s
opinion.”Honda-ism which he has empathy“Before technology, we are all
equal. The substance of ideas is
the real challenge.”

cell system—not solely to our FCVs but also across an array of domains, encompassing commercial vehicles,
stationary power sources, construction machinery and diverse industrial equipment. We will aim to build ahydrogen ecosystem.
Collaboration and cooperation with entities constituting the hydrogen value chain, spanning supply facets,
stand as imperative in the establishment of a comprehensive hydrogen ecosystem. Our engagement entails

Interview ––––––––––––

involvement with the Japan Hydrogen Station Network underscores our dedication to this pursuit. Moreover,

To Become a Global Leader in the Field of Hydrogen Fuel Cell
Technology

we collaborate with industry players such as Shell and FirstElement Fuel, actively engaged in the hydrogen

Ever since my childhood, I’ve held a strong interest in environmental issues and even conducted independent

fostering partnerships with companies pivotal to the hydrogen station network’s expansion. Notably, ourstation domain in North America. Supplementary to these endeavors, we have embarked on exploratory
research into the potential applications of hydrogen technology in the aerospace sector, marking yet anotherprospective avenue. Through these series of initiatives, we will contribute to the realization of a carbon-neutral
society by promoting the development of a comprehensive hydrogen ecosystem across the entire community.
Provide Clean Mobility and Reliable Power Solutions through the Intelligent Combination of Electricity andHydrogen Energy
Realization of a Carbon-Neutral Society
Renewable Energy
Natural Energy Acquisition

Renewable Energy Supply

Production

Storage

H2

H2

Hydrogen
Production

Long-Term Mass
Energy Storage

Long-DistanceTransportation
H2

Intercontinental
Transport

FC
Power
SupplyH2 H2 H2

Pipeline Transport

Transportation

Reliable Power
Supplylab was engaged in a collaborative project with Honda. I vividly recall one of Honda’s technical experts visiting
our lab, radiating genuine enthusiasm and delight for their work. This experience left a lasting impression onme, leading me to reflect, “Honda is a company where work is conducted with such freedom and joy.”Transitioning to fuel cell vehicles that emit zero CO2 could yield a substantial environmental benefit. To truly
execute Honda’s electrification business strategy, we must direct our attention not solely to batteries but alsoemphasize the significance of fuel cells. We have been committed to advancing R&D efforts, aiming to broaden
the scope of hydrogen fuel cell applications across a variety of sectors, encompassing passenger cars, commercial
The advantages of hydrogen fuel cells encompass more than just environmental impact reduction; they

FCVFC
Commercial
Vehiclesuniversity years. I delved into research on fuel cells during my time at university, and serendipitously, my researchvehicles, trucks and stationary power sources.

The Joy of MobilityEV

studies on fluctuations in Japan’s average temperatures. My introduction to Honda occurred during myElectrification
Expansion
Larger Scale andLonger Distancealso encompass the utilization of hydrogen as an energy carrier. Unlike electricity, which is difficult to store in
substantial quantities for extended periods, hydrogen can be stored over long durations. For example, surplus
electricity produced at night can be converted into hydrogen and stored for later use. This becomes notably
valuable for island nations like Japan, which face limitations in abundant energy resources like oil. In the realms

FC Construction
Machinery

H2
H2
H2

FCV

Utilizationof energy management and supply, I am convinced that our research assumes a crucial role.
Honda plays a significant role in mitigating environmental impact. To sustain its position as a global
frontrunner in environmental initiatives, my aspiration is for Honda to strive for world-class standing in the fuelcell sector.

Honda Report 2023

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Value Creation Story

5 Key Themes

Business Strategy

Governance

Related Data

Brand Value Enhancement Enhancement of Consistent Brand Management
Towards Brand Value Enhancement
Honda brand has been shaped by the accumulation of every individual business activity, walking hand in handwith customers from its founding to the present. We recognize that enhancing Honda brand, which has been
crafted over 75 years of history, and elevating its value for the future is a critically important objective for
Honda.
In this period of significant transformation, we have redefined our global brand slogan, “The Power of

The dreams of each and every one of us working together havealways been the driving force of Honda.
We have different kinds of dreams, but by applying our originaltechnologies, ideas and design we take on challenges
continuously to realize mobility that enables our customers toenjoy life with more freedom, more convenience and more fun.

Dreams,” with the aim of clearly demonstrating the value it creates for customers worldwide and uniting all
associates to collectively work towards a common purpose. We believe that taking this beyond mere “words”
and aligning it with all aspects of our corporate activities, including products and services, and connecting it
to consistent implementation leads to the creation of an evolved Honda brand.
Based on this mindset, we position the redefined global brand slogan as the cornerstone of Honda’s brandmanagement, projecting the underlying beliefs onto various brand assets to establish a core of consistent
branding. We aim to establish an appealing brand that resonates with stakeholders by developing branding
based on a solid and unwavering common foundation, both within and outside the company. This will supportand drive creativity powered by the “dreams” of all associates working at Honda.
Furthermore, we will monitor the effectiveness of this brand management through the “Brand Value”

The future mobility Honda dreams of will create a joy andpublished by Interbrand, using it as a performance indicator to drive further advancements in our initiatives.

freedom of mobility that enables people to transcend theconstraints of time and place, and augment their every possibility.
Such mobility will become the “power” for people who are trying

Honda’s Brand Management
裏表紙

to advance toward their own dreams.
Dreams that will move even more people, until there is an

Recruitment
activityendless expanse of new dreams.

Investor relations
activity

Products

Services

Honda ReportSocial media

WebsiteAdvertising

Sales activity

External Branding
A brand that inspires
empathy and resonance

The Power of Dreams
Through the creation of mobility we dream of, Honda will

表紙
Exhibition

Honda Report 2023

Global Deployment and Expansion of “Brand Assets”

Redefining the Honda
Global Brand Slogan

A brand where eachindividualʹs creative power
is fueled by dreams

become “The Power of Dreams” of more and more people.
That is how we will move people and society forward.

Internal Branding

See p.4 Global Brand Slogan

In-house
communication tool

Personnel system2023

In-house training* Measuring the eﬀectiveness by using
brand value as an indicator and implementing
actions based on the results.

In-house event

Workplaceenvironment

Honda Report 2023

55

Value Creation Story

Business Strategy

Governance

5 Key Themes

Related Data

Governance Corporate Governance
Basic Approach

Enhancing Corporate Governance to Become “A Company People and Society Want to Exist”
As a key task for management, Honda strives to enhance its corporate governance based on the Company’s

broad delegation of the business execution authority from the Board of Directors to the Executive Officers.

basic principle to strengthen the trust of its shareholders/investors, customers and society; encourage

Honda is making efforts to appropriately disclose corporate information including the release andtimely, decisive and risk-considered decision-making; seek sustainable growth and enhance corporate

disclosure of quarterly financial results and management policies in a timely and accurate manner tovalue over the medium- to long-term; and become “a company people and society want to exist.”

bolster the trust and appreciation of shareholders/investors, customers and society. Going forward, Honda

To clearly segregate the supervisory and execution functions of management, strengthen thewill continue to strive to ensure the transparency of its management.

supervisory function and enable prompt and flexible decisions, Honda has created a Nominating
Committee, Compensation Committee and Audit Committee, each of which is composed of over 50%
Outside Directors. Honda has also adopted a “company with three committees” structure, which allows theWEB“Honda Corporate Governance Basic Policies” “Corporate Governance Report”
https://global.honda/en/investors/policy/governance.html

Corporate Governance Structure (as of June 21, 2023)
Resolution for the election/dismissal of directors

Supervisory
function

Election/Dismissal

General Meeting of Shareholders
Election/Dismissal

Office of theBoard of Directors

Assistance

Audit

Board of Directors 11 Directors (including 5 Outside Directors)
Election/Dismissal/Supervision of committee members

Audit

Determining compensation

Nominating Committee 4 Directors (including 3 Outside Directors)

Compensation Committee 4 Directors (including 3 Outside Directors)

Election/Dismissal/Supervision/Delegation of authority of Executive Officers

Execution

Determining compensation

Business Ethics
Kaizen
Proposal Line
ProposalReportSupervision

Supervision/
Evaluation

Audit
ReportReport Report

ReportCompliance Officer

Risk Management Officer

Compliance Committee

Risk Management Committee

Compliance

Risk Management

ReportResolution for Report
the election/
dismissal of
accounting
auditors

Audit Committee 5 Directors (including 3 Outside Directors)

Executive Council (Representative Executive Officers and Executive Officers)
ReportAccounting Auditors

Supervision/delegationof authority

Proposal/ReportAudit Division

ReportRespective Operations and Supervisory Units (Regional/Business/Functional)/Subsidiaries

Internal audit

Honda Report 2023

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Business Strategy

5 Key Themes

Governance

Related Data

Governance | Corporate GovernanceNominating Committee

Decision-Making for Executing Business Matters

Adopting a Company with Three Committees System

The Nominating Committee determines the content of the

Honda has adopted a “company with three committees” system to delegate the decision-making authority

submitted to the general shareholders’ meeting and performs otherof the Board of Directors to execute important business matters to the Executive Officers in accordance

duties prescribed by laws and regulations and the Articles ofwith the provisions of the Company’s Articles of Incorporation and resolutions approved by the Board. This

Incorporation. The Nominating Committee is composed of foursystem enables quick decision-making and prompt business execution while clearly separating the

Directors, including three Outside Directors.

proposals for the appointment or removal of Directors to befunctions of management supervision and business execution so that the Board is focused on overseeing
business execution.

The Chairperson of the Nominating Committee is selected fromamong the Independent Directors.

Ratio of Outside
Directors

75%

Attendance rate
(FY2023)100%(3 persons/
4 persons)(held 12 times)

Ratio of Outside
Directors

Attendance rate
(FY2023)

The Board of Directors has established criteria for deliberation and has delegated some of its authority
to the Executive Council, which, in turn, delegates some of its authority to the Business Operating Board.
The Executive Council conducts preliminary deliberations on matters to be resolved by the Board of
Directors and deliberates on important management matters within the scope of the authority delegatedCompensation Committee

The Compensation Committee makes determinations regarding theby the Board of Directors. The Business Operating Board deliberates important management matters indetails of compensation for each Director and Executive Officer andeach area within the scope of the authority delegated by the Executive Council.

carries out other duties as prescribed by laws and regulations andthe Articles of Incorporation. The Compensation Committee iscomposed of one Director and three Outside Directors. The

Board of Directors

chairperson is selected from among the Independent Directors.

The Board of Directors is comprised of six Directors and five Outside Directors.
To respond to the mandate of the shareholders to achieve sustainable growth and enhance the

75%

100%

(3 persons/
4 persons)(held 11 times)

Ratio of Outside
Directors

Attendance rate
(FY2023)

corporate value of the Company over the medium- to long-term, the duties of the Board of Directors
include making decisions concerning key Company matters, such as its basic management policies, and themonitoring of operations by Directors and Executive Officers. Additionally, the Board of Directors discusses
and makes decisions concerning matters specified in the regulations of the Board of Directors as well as

Audit Committee

To respond to the mandate of the shareholders, the Audit

matters set forth in the Articles of Incorporation and applicable laws. All other matters are delegated toCommittee conducts audits of the execution of duties by thethe Representative Executive Officers or Executive Officers.

Directors and Executive Officers and performs other duties as

To fulfill the above roles, the candidates for Director, regardless of gender, nationality, or other personalprescribed by laws and regulations and the Articles of

attributes, shall be persons of superior character and insight who are experts in company management,

Incorporation to ensure the sound and sustainable growth of thelaws, politics, accounting, education, or the Company’s business. The Nominating Committee shall consider

Honda Group. The Audit Committee is composed of two Inside

the balance of gender, nationality, knowledge and related experience among the candidates.

Directors and three Outside Directors. The Chairperson of the

Term of officeAttendance rate (FY2023)

Percentage ofPercentage of
Outside Directors* Non-Executive Directors

45.5%(5 persons /11 persons)Average term of office

3.7years■ 0-4 years 8 persons■ 5-9 years 3 persons■1
 0 years or longer 0
person72.7%(8 persons /11 persons)

Percentage ofFemale Directors

18.2%(2 persons/11 persons)Audit Committee is selected from among Independent Directors.

60%(3 persons/
5 persons)100%(held 11 times)

To ensure the effectiveness of the audit, full-time member(s) of the
Audit Committee are elected by resolutions of the Board of
Directors.

100%(held 10 times)* All five Outside Directors currently in office are Independent Directors
who satisfy the Company’s Criteria for Independence of Outside Directors.

Honda Report 2023

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Value Creation Story

Business Strategy

Governance

5 Key Themes

Related Data

Governance | Corporate Governance

Board and Committee Members

Name

Term
of
officeAttendance in FY2023(Attendance/Number of times held)
Position

Seiji
Kuraishi

8 years· Chairman and Director(total)Toshihiro
Mibe

3 years

ShinjiAoyamaResponsibilities

Board ofDirectors

SkillsLegal &
Accountrisk
ing &managefinancement

Nominating
Audit
Committee Committee

New
Compensa- Corporate
Industrial
Internation
manageexperi- businesstionalityment
ence
strategies
Committee

HR

●

●

●

ESG &
sustainability·C hairman of the Board of Directors

10/10
100%

-

-

-

●

●

●

·M
 ember of the Nominating Committee·C hief Executive Officer

10/10
100%

12/12
100%

-

-

●

●

●

●

●

●

●

· Director
5 years · Executive Vice President(total)and Representative
Executive Officer·M ember of the Compensation Committee·C hief Operating Officer·R isk Management Officer· I n charge of government and industry relations

8/8
100%

-

-

-

●

●

●

●

●

●

●

NoriyaKaihara· Director
4 years· Senior Managing(total)Executive Officer·C hief Officer for Regional Operations (North
America)·P resident, Chief Executive Officer and Director of
American Honda Motor Co., Inc.

-

-

-

●

●

●

●

Asako
Suzuki2 years · Director·M ember of the Audit Committee (full-time)

10/10
100%

-

11/11
100%

-

●

●

Masafumi
Suzuki6 years · Director· Member of the Audit Committee (full-time)

10/10
100%

-

11/11
100%

-

●

●

KunihikoSakai

4 years · Director· Member of the Nominating Committee· Member of the Audit Committee

10/10
100%

12/12
100%

11/11
100%

-

●

FumiyaKokubu3 years · Director·M ember of the Nominating Committee(Chairperson)·M ember of the Compensation Committee

10/10
100%

12/12
100%

-

11/11
100%

●

●

YoichiroOgawa

2 years · Director·M ember of the Audit Committee (Chairperson)·M ember of the Compensation Committee

10/10
100%

-

11/11
100%

11/11
100%

●

●

Kazuhiro
Higashi

2 years · Director· Member of the Nominating Committee· Member of the Compensation Committee(Chairperson)

10/10
100%

12/12
100%

-

11/11
100%

●

Ryoko
Nagata2 years · Director· Member of the Audit Committee

10/10
100%

-

11/11
100%

-

· Director· President andRepresentative
Executive Officer

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

●

Honda Report 2023

58

Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

Governance | Corporate GovernanceReason for Appointment of Outside Directors

Support Systems for Outside Directors

Honda appoints Outside Directors who have abundant experience and deep insight and are capable of

Honda’s Board of Directors Office plays a central role in providing the following support to Outside

overseeing the business management of the Company from an objective, highly sophisticated and broad

Directors to ensure they can maximize their functions as Outside Directors.

Five Outside Directors Having Abundant Experience andDeep Insight

Board of Directors Office Providing Necessary Support as
Appropriate

viewpoint thanks to their independent position outside the Company. The Company has at least two
Outside Directors, and at least one third of the members of the Board of Directors are Independent

1. Orientation at the time the director assumes this role

Directors who fulfill the Company’s Criteria for the Independence of Outside Directors. All five Outside

Honda provides training in industry trends as well as the Company’s history, business, finances,

Directors currently in office satisfy the Criteria for Independence of Outside Directors, and their interests

organizations, internal control system and other matters to newly appointed Outside Directors.

are not in conflict with those of the Company or the shareholders. The five Outside Directors are specified
as Independent Directors as prescribed by a provision of the Tokyo Stock Exchange (TSE). The names of

2. Preliminary briefing sessions and information-sharing meetingsthese Directors have been submitted to the TSE.

Preliminary briefing sessions are held for Outside Directors in advance of each Board of Directors’ meeting

Please see the “Honda Corporate Governance Basic Policies” Annex 1 for Honda’s Criteria for thefor the following purposes: to ensure that they fully understand the details and background of each

Independence of Outside Directors (Please use the link below.) If any Outside Director also serves as anagenda item to be submitted to the Board of Directors, its position in the medium- to long-term

officer at another listed company, such Director shall only serve at four companies other than the

management plan, and other relevant information, and to ensure that the Board of Directors holds

Company so that they can secure sufficient time to perform their duties for the Company.

substantial deliberations. Honda also provides opportunities for information-sharing and discussion
among Directors on important matters, such as the status of companywide risk management and theWEB“Honda Corporate Governance Basic Policies”
https://global.honda/en/investors/policy/governance.html

progress of the medium-term management plan, as appropriate.
3. Opinion exchange meetings on matters of management concern

Kunihiko
Sakai

Mr. Kunihiko Sakai has high expertise and abundant experience as a legal affairs specialist having
served as Public Prosecutor and a lawyer, including posts of Superintending Prosecutor at High Public
Prosecutors’ Offices from July 2014 to March 2017. He has properly fulfilled his duties as Outside Director
who is an Audit and Supervisory Committee Member since June 2019, and as Outside Director and a
Member of the Nominating Committee and the Audit Committee since June 2021, by auditing andoverseeing the entire business management of the Company from an independent standpoint.

FumiyaKokubuMr. Fumiya Kokubu held positions of President and CEO, and Chairman of the Board of Marubeni Corporationfrom April 2013, and has abundant experience and deep insight regarding corporate management. He has
properly fulfilled his duties as Outside Director since June 2020, and as Outside Director, the Chairperson of
the Nominating Committee and a Member of the Compensation Committee since June 2021 by overseeing
the entire business management of the Company from an independent standpoint.

Yoichiro
Ogawa

Mr. Yoichiro Ogawa has high expertise and abundant experience as an accounting specialist having served
as a Certified Public Accountant for many years, including posts of CEO of Deloitte Tohmatsu Group
from July 2015 to May 2018. He has properly fulfilled his duties as Outside Director, the Chairperson of
the Audit Committee and a Member of the Compensation Committee since June 2021 by auditing andoverseeing the entire business management of the Company from an independent standpoint.

Kazuhiro
Higashi

Mr. Kazuhiro Higashi held positions of President and Chairman of Resona Holdings, Inc. from April 2013
to June 2022, and has abundant experience and deep insight regarding corporate management. He has
properly fulfilled his duties as Outside Director, the Chairperson of the Compensation Committee and a
Member of the Nominating Committee since June 2021 by overseeing the entire business managementof the Company from an independent standpoint.

Ryoko
NagataMs. Ryoko Nagata held positions of Executive Officer and Audit & Supervisory Board Member of Japan
Tobacco Inc. from June 2008 to March 2023, and has abundant experience and deep insight regarding
corporate management and audit. She has properly fulfilled her duties as Outside Director and a Memberof the Audit Committee since June 2021 by auditing and overseeing the entire business management of
the Company from an independent standpoint.

Honda holds opinion exchange meetings for Directors regarding matters of concern to management. Thesemeetings aim to share with Outside Directors an awareness of the Honda Group’s long-term challenges anddirections to be pursued and to deepen their understanding of management initiatives. Such meetings arealso intended to utilize the knowledge of Outside Directors in discussing future management policies.
4. Dialogue with Executive Officers/dialogue among Outside Directors
To facilitate forthright communication among Directors, Honda provides opportunities for dialogue
between Outside Directors and Executive Officers or Directors, as well as dialogue among Outside
Directors as needed.
5. Inspection visits to business sites
Honda arranges inspection visits to its plants and otherbusiness sites as necessary to promote the Outside
Directors’ understanding of the Company’s business.

Inspection of the Saitama Factory’s assembly plant

Honda Report 2023

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Value Creation Story

Business Strategy

5 Key Themes

Governance

Related Data

Governance | Corporate GovernanceEvaluation of the Effectiveness of the Board of Directors

Conducting Questionnaire and Interviews in Each Fiscal
Year to Increase Effectiveness

Summary of Evaluation Results

Each fiscal year, the Company evaluates the overall effectiveness of the Board of Directors to confirm thefrequency of meetings, providing information to Outside Directors and enhancing opportunities for

current status of the Board’s functions and with the aim of further improving its effectiveness andpromoting understanding among shareholders and stakeholders.

External lawyers conducthearings and collect theresults

been adequately ensured through the following initiatives: setting appropriate items for deliberation andexchange of opinions, including business site visits, as well as the appropriate operation of the threecommittees.
Going forward, the Company will further enhance the effectiveness of the monitoring-type Board of

Evaluation Process
Survey to all Directors(self-assessment)

The results of the effectiveness evaluation confirmed that the effectiveness of the Board of Directors has

Under the Chairperson’s
supervision, the Board of Directors
discusses the evaluation results
submitted by the Secretariat andissues a resolution

Directors by stimulating discussion both within and outside the Board of Directors and by further
strengthening cooperation between the Board of Directors and the three committees.

Evaluation Results
Tasks for FY2022

Main initiatives for FY2023

Evaluation for FY2023

Tasks and initiatives for the future

Composition

Continued examination of the composition of
the Board of Directors for further functional
enhancement

Discussing the need for formulating, disclosing andrevising the skill matrix in the Nominating Committee

The current composition of the Board of Directors isappropriate.

Further deepening the discussion on the expertiseand diversity of future Directors

Sharedinformation

Further enhancement of timely information sharing
and opportunities for business site visits for Outside
Directors· Additional information sharing matters for Outside
Directors· Enhancement of opportunities for Outside
Directors to visit business sites and events· The information provided is substantial.
· It was meaningful to have ample opportunities for
Outside Directors to visit business sites and events,
which deepened their understanding of the businessand allowed them to experience the corporate culture.

Provide information and inspection opportunities witha greater focus

Agendaitems fordeliberation,
etc.

Further enhance opportunities to share informationand exchange opinions about the progress statusof the medium-term management plan and the
direction of the next term plan

· Setting up opportunities for information sharing
and discussion regarding the direction of the nextmanagement plan.
· Conduct a meeting to exchange views on
management-related concerns· Discussion items are narrowed down to importantmatters.
· Information sharing/opinion exchange
opportunities are effective.

Enhancing Board discussions through effective setup
of information sharing/exchange opportunities

Deliberation
at meetings

Further revitalization of discussions in the Board of
Directors

Update proposals and explanations on the day ofthe event as appropriate, based on questions anddiscussions raised at the pre-briefing· Active debates are underway.
· Each Director provides insightful opinions andquestions.

Further revitalization of discussions in the Board of
Directors (Continued)

Committee

Maintaining and enhancing coordination between
committees and the Board of Directors

Report the deliberation status of each committee
at the Board of Directors meeting immediately
following the committee meeting

The deliberation status of each committee is being
properly reported to the Board of Directors.

Maintaining and enhancing coordination between
committees and the Board of Directors (Continued)

Honda Report 2023

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Business Strategy

Governance

5 Key Themes

Related Data

Governance | Corporate Governance

Remuneration Structure for Directors and Executive Officers

Remuneration Structure Linked to Medium- to Long-TermBusiness Performance

Total Amount of Remuneration by Category

Category of
Directors

The Company views remuneration for Directors and Executive Officers, the key to its corporate governance,
as an important driving force in realizing our fundamental beliefs, management policies and aspirations.
The Compensation Committee has established the following decision-making policy to encourage

Total amount by type of remuneration(millions of yen)

Total amountof
remuneration(millions of yen)Basicremuneration

Performance-linked
remuneration
STI (Short Term
Incentive)

LTI (Long Term
Incentive)

Number of
eligible
directors(Number of
persons)

appropriate risk-taking and accurately reflect management responsibility to promote speedy reforms andDirectors(excluding Outside Directors)

291

288

_

3

4

thus achieve our vision amidst a rapidly changing environment.

Outside Directors

90

90

_

_

5

The Company’s remuneration structure for Directors and Executive Officers is designed to motivate
associates to contribute to the improvement of the Company’s business performance not only over the
short-term but also over the medium- to long-term so that the Company can continuously enhance its
corporate value. The structure consists of monthly remuneration, a fixed amount paid each month asremuneration for the execution of duties; a short term incentive (STI) based on business performance for the
relevant fiscal year; and a long term incentive (LTI) based on medium- to long-term business performance.
Monthly remuneration shall be paid as a fixed amount each month based on the remuneration standards
decided by the Compensation Committee.
STI shall be determined and paid by the resolution of the Compensation Committee, taking into
consideration the business’s performance in each fiscal year.
Based on the standards and procedures approved by the Compensation Committee, LTI is based on
the business’s medium- to long-term performance and paid in the form of Company shares and cash tofunction as a sound incentive for sustainable growth.
The remuneration paid to Directors - who concurrently serve as Executive Officers - and Executive

Executive Officers

794

282

229

283

6

Total

1,175

660

229

286

15

· “Directors” in the table above does not include the three directors who concurrently serve as Executive Officers.
· These amounts indicate the remuneration paid to directors during the fiscal year. The above includes the amount paid to
one director who retired at the closing of the 98th Ordinary General Meeting of Shareholders held on June 22, 2022, andthe amount paid to one Executive Officer who retired on May 31, 2022.
· The amount of STI for Executive Officers was determined by the Compensation Committee held on June 15, 2023.
· The total amount of LTI is the expenses recorded for stock delivery points granted during the fiscal year in relation to the
Directors’ remuneration Board Incentive Plan (BIP) trust and falls under non-monetary remuneration.

Remuneration of Accounting Auditors

Determining Remuneration with Prior Approval to Uphold
Independence
The Company undergoes accounting audits by KPMG AZSA LLC under the Companies Act of Japan, theOfficers shall consist of monthly remuneration, STI and LTI. The composition rate shall be determined

Financial Instruments and Exchange Act of Japan, the Securities Exchange Act of 1934 (United States) andbased on the remuneration standards decided by the Compensation Committee. The composition ratio of

the Exchange Act of 1933 (United States).

variable compensation shall increase according to the responsibilities assumed by the individual.
The remuneration paid to Outside Directors and other Directors who do not concurrently serve as
Executive Officers shall consist only of monthly remuneration.
To advance the Company’s sustainable growth and enhance its corporate value over the medium- tolong- term from shareholders’ perspectives, even Directors and Executive Officers who are ineligible for LTI
shall acquire the Company’s stock by contributing a certain portion of their remuneration to the Officers
Shareholding Association.
Throughout their term of office and for one year after their retirement, Directors and Executive
Officers shall continuously hold Company stock acquired as an LTI or through the Officers Shareholding
Association.
Please see Article 13 of “Honda Corporate Governance Basic Policies” for information on the policy for
determining remuneration for Directors. (Please use the link below.)WEB“Honda Corporate Governance Basic Policies”
https://global.honda/en/investors/policy/governance.html

The duration of continuous auditing by KPMG AZSA LLC is 18 years.
This period refers to the period during which KPMG AZSA LLC, the current auditor, has continuously
audited the consolidated financial statements and financial statements included in the Company’s
Securities Report. In addition, KPMG, to which KPMG AZSA LLC belongs as a member firm, has been
conducting audits of the Company for U.S. SEC registration purposes since 1962.
A total of 80 staff members at KPMG AZSA LLC have been engaged in the auditing services, including
3 certified public accountants (Masahiko Chino, Isao Kamizuka and Takeshi Kamada), who are responsible
for the execution of the accounting audits, and 77 assistant members (24 certified public accountants and53 other members).
In deciding the remuneration for auditing services by the certified public accountants, etc., theCompany consults with the Accounting Auditors and takes into consideration various factors, including
the size and characteristics of the Company and the audit schedule. To maintain the independence of the
Accounting Auditor, prior approval by the Audit Committee is obtained for the audit remuneration.
Honda Report 2023

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GovernanceBusiness Strategy

5 Key Themes

Governance

Related Data

Compliance

Honda Code of Conduct

Compliance Committee

Formulation and Dissemination of Integrity Guidelines tobe Observed by Honda Associates around the World

Establishment and Operation of Committees to Improve
the Group’s ComplianceTo earn the trust of customers and society and achieve sustainable growth, we must not only comply with

To improve compliance in the Honda Group, Honda has established a Compliance Committee, headed by alaws and regulations but also practice sincere and ethical conduct.

Compliance Officer designated by the Board of Directors. This Committee is composed of the Compliance

Recognizing this, Honda has formulated the Honda Code of Conduct, which summarizes the integrity

Officer as well as Executive Officers and other Executives who are appointed by the Executive Council. The

of conduct to be practiced by all Honda associates around the world, and shares it throughout the Group,

Committee determines important measures for the internal control system, including the formulation andincluding subsidiaries in Japan and overseas.

revision of compliance policies, checks the status of the development and operation of the internal control

The Company works to instill the Honda Code of Conduct in each and every associate throughsystem, supervises the proper operation of the Business Ethics Kaizen Proposal Line and decides measuresawareness-raising activities such as distribution of leaflets and posters, publication of in-house newsletters,

to prevent recurrences of serious compliance-related matters when they arise. When a particularly

distributing educational videos and introducing case studies and other information on the intranet, as wellimportant compliance-related matter arises, it will be deliberated or reported at a meeting of theas conducting training sessions. The status of these activities is regularly reported to the Compliance

Executive Council or the Board of Directors, depending on the nature of the matter.

Committee after confirmation by each division and subsidiary of the Company. For more information,WEB

The Compliance Committee met five times (four regular meetings and one extraordinary meeting) in
FY2023 to report on the status of development and operation of internal control systems as well as theplease see the “Honda Code of Conduct.”

operation status of the Business Ethics Kaizen Proposal Line, among other things. There were no major

Honda Code of Conduct
https://global.honda/en/about/codeofconduct.html

violations of laws or regulations in FY2023.

社長メッセージ

創業以来、Hondaは、基本理念である「人間尊重」と「三つの喜び」を基軸に世界の人々と喜びを分かち合い、「存在を期待される企業」となることを目指してきました。今では、二輪・四輪・ライフ
クリエーションそれぞれの領域で、世界中の多くのお客様にさまざまな製品を通じた価値を提供することができるようになっています。このように成長できたのも、わたしたちが常にお客様や社会に対し誠実に接してきた結果と考えています。Hondaは、2016年に世界中のHondaで働く全ての人々が実践するべき誠実な行動をまとめたものとして「Honda行動規範」を制定しました。皆さんが「Honda行動規範」を理解し、日々の業務や行動で実践されていると感じています。
Hondaの事業を取り巻く環境は大きな変革期を迎え、環境や安全へのさらなる取り組みが喫緊の課題となっています。Hondaも社会からの期待に早いスピードで応えていかなければなりません。また、将来に向けては、Hondaの強みである「独創性」を最大限に生かして、空、海洋、宇宙、ロボットといった領域へも挑戦し、新たな価値を提供し続けていきます。
これらの実現においても、まずお客様や社会に対し誠実で倫理的であることが重要です。たとえ、

Honda 行動規範

どんなに優れた製品やサービスを提供できたとしても、わたしたちの行動が誠実で倫理的でなければ、お客様や社会からの信頼や共感を得ることはできず、Hondaのさらなる成長は見込めません。
どのような環境の中であっても、常にお客様や社会に誠実であることがHondaを支える原点であり、不変の考え方です。引き続き、一人ひとりの行動がHondaを代表しているとの自覚を強く持ち、「Honda
行動規範」に従った誠実で倫理的な行動を実践していただくようお願いします。
取締役 代表執行役社長

010_0771569932110.indd

1

Honda Code of Conduct

2021/08/02

18:51:35

Honda

010_0771569932110.indd11In-house newsletters

行動規範

2021/08/02

18:51:35

Honda Report 2023

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5 Key Themes

Governance

Related Data

Governance | ComplianceBusiness Ethics Kaizen Proposal Line

Initiatives to Prevent Bribery and Corruption

Establishment and Operation of a Consultation Desk that
Provides Consultation from a Fair and Neutral Standpoint

Developing and Disseminating Anti-Bribery Policies to
Ensure the Soundness of Corporate Activities

Honda established the Business Ethics Kaizen Proposal Line as a structure for improving corporate ethics issues.

Honda prohibits bribery and corruption.

This hotline accepts proposals and provides consultation from a fair and neutral standpoint, for any violations

The Honda Code of Conduct requires that the Company complies with laws and regulations, and statesof laws/regulations or internal rules in the workplace, and issues that are difficult for associates to remedy orthat “as an independent corporate entity, Honda maintains appropriate relationships with political entities

resolve in the workplace for some reason, such as difficulties in consulting with their superiors.

(political organizations and politicians) and administrative entities (governmental agencies and government

Furthermore, in addition to cases of a clear violation of laws/regulations or internal rules, this hotline

officials)” and “will interact with political and administrative entities in an appropriate manner in complianceprovides consultation and responds to inquiries about the details of internal rules when questionable caseswith laws, regulations and company policies and will not offer politicians or government officials entertainment

have occurred and engages in fact checking related to such cases. Proposals are accepted by email, letter,or gifts (both monetary and non-monetary) that are prohibited by laws, regulations and company policies.”

telephone or fax from all subsidiaries and suppliers in Japan and overseas, as well as from the parent company.

Moreover, the Code stipulates that the associates “will not receive from or provide to business partners benefits

This hotline ensures protection of the Kaizen proposers and accepts also anonymous proposals.

in the form of goods (both monetary and non-monetary) or entertainment beyond what is generally

Moreover, the Company established a point of contact within an external law office to facilitate associates
to submit proposals. As for overseas, local points of contact have been established in all Regional Operations,while some subsidiaries set up their own points of contact.

considered appropriate by society.”
In addition to the above, the Company also established the Honda Policy on the Prevention of Bribery andCorruption, which stipulates basic policy about bribery and corruption, and the Honda Guideline for the

In FY2023, 333 proposals and consultations were handled by the Business Ethics Kaizen Proposal Line

Prevention of Bribery and Corruption, which stipulates specific compliance items and prohibited items. These(including points of contact outside the Company). Among these, 164 concerned the parent company, 160

are posted on the intranet for Honda associates along with related educational content.

concerned subsidiaries and 9 concerned other matters.

Honda strives to further reduce the risk of bribery and corruption by educating all associates on the bribery

Following investigations of the proposals and consultations submitted, disciplinary action was taken in fourand corruption prevention through awareness-raising activities in accordance with the Honda Code ofcases in the parent company and six cases in subsidiaries in FY2023. There was no case involving the Company that

Conduct, and by providing training to personnel stationed overseas and newly appointed managers based on

resulted in punitive dismissal. None of the cases involved violations of the Honda Policy on the Prevention of Bribery.

their positions and roles. Regarding its subsidiaries, Honda has launched training programs, matched to

In order to raise internal awareness of the points of contact, Honda provides notice on its intranet,

conditions in each company, aimed at raising awareness.

distributes information cards to all associates, including fixed-term associates and temporary workers, anddisplays information posters in each workplace. These tools clearly state that the Kaizen proposers areprotected. In addition, Honda observes how well these points of contact are recognized through an annual
associate vitality survey for all associates. For departments found in these surveys to have low recognition of thepoints of contact, the Company makes additional efforts to increase their awareness.
Proposals and Consultations with the Business Ethics
Kaizen Proposal Line (including External Contacts)

Number of Disciplinary Actions Taken as a Resultof Investigating Cases Proposed to the Office■ Concerning Honda ■ Concerning subsidiaries ■ Other(Cases)
500

445

400

20

429
350

358

300

15

333

17
13

11

10

200

2019

2020

2021

2022

2023

(FY)

0

10

5

5

100
0

■ Concerning Honda ■ Concerning subsidiaries(Cases)

2019

2020

2021

2022

2023

(FY)

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5 Key Themes

Governance

Related Data

Risk Management

Risk Management Committee

Company-Wide Priority Risks

The business environment has undergone drastic changes in recent years in all business categories.

In FY2023, Honda also identified company-wide priority risks, which have been addressed mainly by the

Responding Flexibly to the Complexity and Uncertainty of
Risks
Accordingly, the complexity and uncertainty of risks are rising, which requires effective risk management
activities. Honda set up the Risk Management Committee chaired by a company-wide Risk Management
Officer (RMO), to identify, discuss and monitor important risks from a holistic perspective. The Risk
Management Committee not only identifies internal risks but also gathers and monitors information on
external risk trends associated with changes in the external environment. The Committee uses internal andexternal information to ascertain specific risk scenarios and conduct impact analyses in relation to Honda’s
business strategies. Based on this objective risk analysis, management members engage in discussions todetermine the response policies and structures for the company-wide risks that Honda should address thatare consistent with its management strategies. Of these, risks that are particularly important in terms ofbusiness strategy are designated as company-wide priority risks, and the status of response to these risks isregularly checked and discussed. The discussions and monitoring activities of the Risk Management
Committee are reported to the Executive Council in a timely and appropriate manner.
Risk Management Committee

Executive Council

Identifying Company-Wide Priority Risks and Addressing
them in the Lead Department
responsible departments. In the meantime, the status of progress has been confirmed and discussed by the Risk
Management Committee.
Company-wide priority
risk items
Geopolitical risk

Stoppages or delays of corporate activities due to the strengthening of economic security
policies and human rights laws and regulations, or the conflicts between nations or regional
conflicts

Purchasing andprocurement risk

Stoppages or delays of production activities due to difficulties in receiving parts supplies fromsuppliers or increases in the prices of raw materials and parts, etc.

Information security
risk

Suspension of important operations/services due to cyberattacks and other incidents, leakageof confidential or personal information

Business alliances andjoint ventures risk

Disagreements among partners regarding business, leakage of profit or technology, delays indecision-making

Environmental risk

Costs incurred in response to climate change regulations and fuel consumption and emissions
regulations in various countries

Intellectual property
risk

Infringement of Honda’s intellectual property rights or payment of expensive compensation or
licensing fees

Natural disaster risk

Stoppages or delays of corporate activities due to natural disasters (earthquakes, floods, etc.)
or spread of infectious diseases

Financial and economicriskBusiness impact from economic trends, economic fluctuations, or currency fluctuations

Risk related to brand
image

Business impact associated with damage to brand image

Risk Management Committee(6) Determination of response
policies and structures(5)
Specifying
response
measures(3)
Risk
scenario
refinement(4)
Impactanalysis

External risk
information(1)
Information
gathering /monitoring(2) Specifying risk scenarios / Setting
priority scenarios(7) Instructions for policies

Operations andSupervisory Units(9)
Proposal /reporting(1)
Information
gathering /monitoring(8)
Implementing
response
measures

Risk perspectives

Internal risk
information

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Business Strategy

Governance

5 Key Themes

Related Data

Governance | Risk Management

Risk Assessment Activities

Crisis Response

Foreseeing the Potential Risks to Honda’s Business andResponding Pre-Emptively

Monitoring, Reporting and Quickly Responding to Signs of Crisis

Honda globally carries out risk assessment activities.

crisis information that may have an impact on Honda, the Company is also establishing an information

The purpose of these activities is to foresee the potential risks to Honda’s business and respond preemptively to minimize these risks.
Each department performs an annual risk evaluation using the Group’s common risk items andevaluation criteria to identify the divisional priority risks.
Each of the Operations and Supervisory Units carries out repeated discussions based on the results of therisk assessments of each department. They then identify and respond to priority risks of the Operations andSupervisory Units based on the judgment of Risk Management Officer of the Operations and Supervisory Units.
Additionally, the status of priority risks of the Operations and Supervisory Units based on the risk
awareness of the Operations and Supervisory Units is reported to the Risk Management Committee. Internaland external risk trends are then considered in order to identify and respond to company-wide priority risks.
Through these efforts, Honda aims to firmly establish risk management activities within each Operations
and Supervisory Unit, reduce the risk faced by the entire Group and raise the risk awareness of every
associate.

Honda carries out risk-sensing activities to monitor and report on signs of a crisis. While collecting a wide range of
coordination system in case a crisis becomes apparent.
When a crisis occurs, the Company establishes a Global Emergency Headquarters proportionate to theanticipated magnitude of the crisis’s impact to manage the crisis response. In this way, Honda creates a structure
to prevent the crisis from spreading and to quickly bring the situation under control.
Through its initiatives and experience, Honda’s Global Emergency Headquarters is working to strengthen its
functions to better cope with future events.
Honda regularly holds Emergency Headquarters drills to verify its crisis response capabilities while also
promoting information coordination with each response team in our daily operations. Honda has held drills tosimulate responses to an earthquake directly under the Tokyo metropolitan area and the Nankai Troughearthquake. The Company has also reaffirmed (confirming cooperation between groups) how to respond to acrisis occurring at multiple bases, as well as basic actions in its crisis response.
Also, concerning disaster drills, besides ensuring the safety of human life and procedures to account for its
associates, Honda continuously holds training on procedures from a Business Continuity Planning (BCP) viewpoint
to share information and identify the impact of a crisis on business at an earlier stage.

Risk Assessment Activity Structure

As a recent example of its crisis response, to counter COVID-19, Honda launched a Global Emergency

Executive Council

Headquarters. The Company promotes companywide, cross-sectional responses and strengthens functions by

Risk Management Committee
Company-wide priority risks

Risk awareness by top management(Risks associated with changes in the external environment)

Discussion and decision by the Risk Management Committee

Operations and Supervisory Units

Operations andSupervisory Units

Operations andSupervisory Units

Priority risks

Priority risks

Priority risks

reflecting on these responses.
In terms of COVID-19 status, the resumption of socio-economic activities is accelerating and the normalizationof production, development, purchasing, sales and other corporate activities is also underway at Honda.
Going forward, Honda will continue to strengthen our business foundation in areas such as production,
development, procurement and sales. In the event of a resurgence of infections, we will prioritize the safety of
stakeholders, including our customers, business partners and associates and take measures to minimize thenegative impact on our business and performance from a business continuity perspective.
Additionally, Honda is actively promoting company-wide, cross-sectional measures in collaboration with our

The decision of the Risk Management Officer

suppliers to minimize the impact of the semiconductor supply issue.
Each Division
Priority risks

Each Division…

Global Emergency Headquarters Structure

Priority risks

Identify and assess risks

Identify and assess risks

Identify priority risks

Identify priority risks〈Risk items〉●●

Risk response

Risk response●

Business risk
Environmental risk
Legal risk, etc.

〈Common evaluation criteria〉

Global Emergency Headquarters Manager

Status ofcountermeasures
Frequency of occurrence● Magnitude of impact

Company-wide Risk Management Officer

●

+

●

Head of Secretariat
Risk Manager

Operations
Response Group

Associate ResponseGroup

Financial Response
Group

Disaster Area
Response Group

Public Relations
Response Group

Relevant Divisions

Honda Report 2023

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Business Strategy

5 Key Themes

Governance

Related Data

Governance | Risk Management

Information Management

Protection of Information Assets, Including Confidential
and Personal Information, throughout the GroupTo protect information assets, including confidential information and personal information, Honda has
formulated the Global Confidentiality Policy and the Global IT Security Policy, the scope of which extends toGroup subsidiaries. These policies stipulate the adoption of a systematic response structure, the use of global
compliance items when handling confidential information and personal information and the implementationof security standards for information systems and networks. They also specify the line of reporting in the eventof an information leak.
As part of its efforts to effectively implement these policies, Honda has set up the Global Confidentiality
Committee, chaired by the Head of the Human Capital Unit, to ensure timely responses to changes in
information flows and other issues.
The Global Confidentiality Committee determines globally common medium-term policies and an annual
activity plan. Based on this plan, each Regional Confidentiality Committee takes the lead in promoting activities
to safely handle information obtained through Honda’s corporate activities, including personal informationand confidential information.
Besides continuously strengthening its activities to ensure information security against cyberattacks, which
are becoming increasingly sophisticated and complex, the Company performs daily monitoring while
establishing systems capable of immediately responding to events that must be addressed.
Global Emergency Headquarters Structure
Global Confidentiality Committee(Chairperson: Head of the Human Capital Unit)

Regional
Confidentiality
Committee

Japan

North
America

Confidentiality
Committee at eachbusiness site/local
subsidiaryBusiness sites

Subsidiaries

China

Asia and
OceaniaSouth
America

Europe, Africa
and the Middle
East

Local
subsidiaries

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5 Key Themes

Governance

Related Data

Directors and Executive Officers

Directors (as of June 21, 2023)
Chairman and
Director

Seiji Kuraishi
Chairman of
the Board of
Directors●

Director
President andRepresentative
Executive Officer

Toshihiro
Mibe

Nominating
Committee
Member● Chief Executive
Officer●

Director
Executive Vice
President andRepresentative
Executive Officer

ShinjiAoyamaCompensation
Committee
Member● Chief Operating
Officer● Risk Management
Officer● In Charge ofGovernment andIndustry Relations●

Director
Senior Managing
Executive Officer

NoriyaKaiharaChief Officer for
Regional Operations(North America)● President, Chief
Executive Officer
and Director of
American Honda
Motor Co., Inc.
●

Director

Asako Suzuki
Full-time Audit
Committee
Member●

Apr. 1982 Joined Honda Motor Co., Ltd.
Jun. 2010 Director
Apr. 2011 Operating Officer and Director
Jun. 2011	Operating Officer (resigned from position as
Director)
Nov.2013	President of Honda Motor (China) Technology
Co., Ltd.
Apr. 2014 Managing Officer of the Company
Apr. 2016 Senior Managing Officer
Jun. 2016	Executive Vice President, Executive Officer andRepresentative Director
Jun. 2016 Risk Management Officer
Jun. 2016 Corporate Brand Officer

Apr. 2017 Chief Operating Officer
Apr. 2017	In Charge of Strategy, Business Operations andRegional Operations
Jun.2017	Executive Vice President and Representative
Director
Apr. 2019	Director in Charge of Strategy, Business
Operations and Regional Operations
Apr. 2019	Chief Officer for Automobile Operations
Jun. 2021	Director, Executive Vice President andRepresentative Executive Officer
Jun. 2021	Compensation Committee Member
Apr. 2022 Chairman and Director (present)
Apr. 2022	Chairman of the Board of Directors (present)

Apr. 1987 Joined Honda Motor Co., Ltd.
Apr. 2014 Operating Officer
Apr. 2014	Executive in Charge of Powertrain Business for
Automobile Operations
Apr. 2014	Head of Powertrain Production Supervisory Unit ofAutomobile Production for Automobile Operations
Apr. 2015	Executive in Charge of Powertrain Business andDrivetrain Business for Automobile Operations
Apr. 2015	Head of Drivetrain Business Unit in Automobile
Production for Automobile Operations
Apr. 2016	Senior Managing Officer and Director of
Honda R&D Co., Ltd.
Apr. 2018 Managing Officer of the Company
Apr. 2018	Executive Vice President and Director of Honda
R&D Co., Ltd.
Apr. 2019	President and Representative Director of
Honda R&D Co., Ltd.

Apr. 2019	In Charge of Intellectual Property andStandardization of the Company
Apr. 2020 Senior Managing Officer
Apr. 2020	In Charge of Mono-zukuri (Research &Development, Production, Purchasing,Quality, Parts, Service, Intellectual Property,
Standardization and IT)
Apr. 2020 Risk Management Officer
Jun. 2020 Senior Managing Director
Jun. 2020	Director in Charge of Mono-zukuri (Research& Development, Production, Purchasing,Quality, Parts, Service, Intellectual Property,
Standardization and IT)
Apr. 2021 President and Representative Director
Apr. 2021 Chief Executive Officer (present)
Jun. 2021	Director, President and Representative
Executive Officer (present)
Jun. 2021	Nominating Committee Member (present)

Apr. 1986 Joined Honda Motor Co., Ltd.
Apr. 2012 Operating Officer
Apr. 2013 Chief Officer for Motorcycle Operations
Jun. 2013 Operating Officer and Director
Apr. 2017 Chief Officer for Regional Operations (Asia & Oceania)
Apr. 2017	President and Director of Asian Honda MotorCo., Ltd.
Jun. 2017	Operating Officer of the Company (resigned
from position as Director)
Apr. 2018 Managing Officer
Apr. 2018	Vice Chief Officer for Regional Operations(North America)
Apr. 2018	Senior Executive Vice President, Chief Operating
Officer and Director of Honda North America, Inc.
Apr. 2018	Senior Executive Vice President, Chief
Operating Officer and Director of American
Honda Motor Co., Inc.
Nov. 2018	President, Chief Operating Officer and Directorof Honda North America, Inc.
Nov. 2018	President, Chief Operating Officer and Directorof American Honda Motor Co., Inc.

Apr. 2019	Chief Officer for Regional Operations (North
America) of the Company
Apr. 2019	President, Chief Executive Officer and Directorof Honda North America, Inc.
Apr. 2019	President, Chief Executive Officer and Directorof American Honda Motor Co., Inc.
Jul. 2021	Managing Officer in Charge of Electrification of
the Company
Oct. 2021 Managing Executive Officer
Apr. 2022 Senior Managing Executive Officer
Apr. 2022 Chief Officer for Business Development Operations
Apr. 2022 Corporate Brand Officer
Jun. 2022 Chief Officer for Automobile Operations
Jun. 2022 Director, Senior Managing Executive Officer
Apr. 2023	Director, Executive Vice President andRepresentative Executive Officer (present)
Apr. 2023 Chief Operating Officer (present)
Apr. 2023 Compensation Committee Member (present)
Apr. 2023 Risk Management Officer (present)
Apr. 2023	In Charge of Government and Industry
Relations (present)

Apr. 1984 Joined Honda Motor Co., Ltd.
Apr. 2012	General Manager and Automobile Quality
Assurance Division
Apr. 2013 Operating Officer
Apr. 2013 Chief Quality Officer
Jun. 2013 Operating Officer and Director
Apr. 2014 Chief Officer for Customer Service Operations
Apr. 2014	Head of Service Supervisory Unit for
Automobile Operations
Apr. 2016 Chief Officer for Customer First Operations
Jun. 2017	Operating Officer (resigned from position as
Director)
Apr. 2018 Managing Officer
Apr. 2018 Chief Officer for Purchasing Operations

Apr. 2020	Head of the Business Supervisory Unit for
Automobile Operations
Apr. 2021 Chief Officer for Customer First Operations
Apr. 2021 Risk Management Officer
Jun. 2021 Managing Executive Officer
Oct. 2021 Managing Officer
Oct. 2021	Chief Officer for Regional Operations (North
America) (present)
Oct. 2021	President, Chief Executive Officer and Directorof American Honda Motor Co., Inc. (present)
Apr. 2023	Senior Managing Executive Officer of theCompany
Jun.2023	Director, Senior Managing Executive Officer(present)

Apr. 1987 Joined Honda Motor Co., Ltd.
Apr. 2014 President of Dongfeng Honda Automobile Co., Ltd.
Apr. 2016 Operating Officer of the Company
Apr. 2018 Vice Chief Officer for Regional Operations (Japan)
Apr. 2019	Chief Officer for Human Resources andCorporate Governance Operations

Apr. 2020 Operating Executive
Jun. 2021 Director (present)
Jun. 2021	Full-time Audit Committee Member (present)

Director

Masafumi
SuzukiFull-time Audit
Committee
Member●

Director

Kunihiko
Sakai

Nominating
Committee
Member● AuditCommittee
Member●

Director

FumiyaKokubuNominating
Committee
Member(Chairperson)● CompensationCommittee
Member●

Director

Yoichiro
Ogawa

Audit Committee
Member(Chairperson)● CompensationCommittee
Member●

Director

Kazuhiro
HigashiNominating
Committee
Member● CompensationCommittee
Member(Chairperson)●Director

Ryoko
NagataAudit Committee
Member●

Apr. 1987 Joined Honda Motor Co., Ltd.
Apr. 2012	General Manager of Regional Operation
Planning Office for Regional Operations(Europe, CIS, the Middle & Near East andAfrica)Apr. 2013	General Manager of Accounting Division for
Business Management Operations

Jun. 2017	Director (Full-time Audit and Supervisory
Committee Member)
Jun. 2021 Director (present)
Jun. 2021 Full-time Audit Committee Member (present)

Apr. 1979	Public Prosecutor of Tokyo District Public
Prosecutors’ Office
Jul. 2014	Superintending Prosecutor of Takamatsu High
Public Prosecutors’ OfficeSep.2016	Superintending Prosecutor of Hiroshima High
Public Prosecutors’ Office (resigned in March2017)
Apr. 2017 Registered with the Dai-Ichi Tokyo Bar Association
Apr. 2017 Advisor Attorney to TMI Associates (present)

Jun. 2018	Audit and Supervisory Board Member (Outside)of Furukawa Electric Co., Ltd. (present)
Jun. 2019	Director (Audit and Supervisory Committee
Member) of the Company
Jun. 2021 Director (present)
Jun. 2021 Nominating Committee Member (present)
Jun. 2021 Audit Committee Member (present)

Apr. 1975 Joined Marubeni Corporation
Apr. 2013	President and CEO, Member of the Board of
Marubeni Corporation
Apr. 2019	Chairman of the Board of Marubeni
Corporation (present)
Jun. 2019 Outside Director of Taisei Corporation (present)
Jun. 2020 Director of the Company (present)
Jun. 2021	Nominating Committee Member (Chairperson)(present)
Jun. 2021	Compensation Committee Member (present)

May 2022	Chairman of Japan Machinery Center for Tradeand Investment (present)
May 2022	Chairman of Japan Foreign Trade Council, Inc.
(present)

Oct. 1980	Joined Tohmatsu & Aoki Audit Corporation(currently Deloitte Touche Tohmatsu LLC)
Mar. 1984 Registered as Japanese Certified Public Accountant
Oct. 2013 Deputy CEO of Deloitte Touche Tohmatsu LLC
Oct. 2013	Deputy CEO of Tohmatsu Group (currently
Deloitte Tohmatsu Group)
Jun. 2015	Global Managing Director for Asia Pacific of
Deloitte Touche Tohmatsu Limited (United
Kingdom) (resigned in May 2018)
Jul. 2015 CEO of Deloitte Tohmatsu Group

Jun. 2018	Senior Advisor of Deloitte Tohmatsu Group(resigned in October 2018)
Nov. 2018 Founder of Yoichiro Ogawa CPA Office (present)
Jun. 2020	Outside Audit & Supervisory Board Member of
Recruit Holdings Co., Ltd. (present)
Jun. 2021 Director of the Company (present)
Jun. 2021	Audit Committee Member (Chairperson)(present)
Jun. 2021	Compensation Committee Member (present)

Apr. 1982 Joined Resona Group
Apr. 2013	Director, President and Representative
Executive Officer of Resona Holdings, Inc.,
Apr. 2013	Representative Director, President andExecutive Officer of Resona Bank, Limited
Jun. 2013	Chairman of Osaka Bankers Association(resigned in June 2014)
Apr. 2017	Chairman of the Board, President, andRepresentative Director of Resona Bank, Limited
Jun. 2017	Chairman of Osaka Bankers Association(resigned in June 2018)
Apr. 2018	Chairman of the Board, President,
Representative Director and Executive Officer
of Resona Bank, Limited

Apr. 2020	Chairman and Director of Resona Holdings, Inc.
(resigned in June 2022)
Apr. 2020	Chairman and Director of Resona Bank, Limited(resigned in June 2022)
Jun. 2020	Outside Director of Sompo Holdings, Inc.
(present)
Jun. 2021	Director of the Company (present)
Jun. 2021	Nominating Committee Member (present)
Jun. 2021	Compensation Committee Member(Chairperson) (present)
Jun. 2022 Senior Advisor of Resona Holdings, Inc. (present)
Jun. 2022 	Senior Advisor of Resona Bank, Limited(present)

Apr. 1987 Joined Japan Tobacco Inc.
Jun. 2008 Executive Officer of Japan Tobacco Inc.
Mar. 2018	Standing Audit & Supervisory Board Member ofJapan Tobacco Inc. (resigned in March 2023)
Jun. 2021 Director of the Company (present)
Jun. 2021 Audit Committee Member (present)

Mar. 2023	External Corporate Auditor of Medley, Inc.
(present)

Executive Officers (as of April 1, 2023)

For the detail information on Executive Officers, please click here (https://global.honda/en/about/management.html).

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GovernanceBusiness Strategy

5 Key Themes

Governance

Related Data

Messages from Outside Directors

We asked the chairpersons of the Committees for their impressions of the redefined Global Brand
Slogan, as well as the strategies and initiatives taken by each Committee.

The Great Possibilities that Lie Beyond
the Boundaries of a Mobility Company

Honda already has a widely recognized global brand slogan, “The Power of Dreams.” To clearly illustrate
Honda’s vision in line with the changing times and to demonstrate how the company will progress,
complementary phase and keywords have been incorporated into this slogan. To firmly establish these
new elements as “Honda’s Vision” the first step is to repeatedly and thoroughly explain to those within
Honda to deepen their understanding and permeation. Subsequently, it is crucial to consistently
communicate this message to the external world, ensuring a continuous flow of information.

Qualities Required for the Leaders in the Future

In Nominating Committee discussions, we have spent time to discuss in-depth the qualities required for
Honda’s leaders. As the results, we concluded that sincerity and honesty, in other words, “integrity” areindispensable attributes for someone in a top leadership position. Building on that foundation, the ability to“craft a compelling vision,” “make proactive decisions” and “lead a group and take the initiative” are the threeparticularly essential elements we identified.
Especially during this period of significant transformation, not only “craft a compelling vision” but also
“make proactive decisions” becomes extremely important. This time, the fact that CEO Toshihiro Mibe decided
to shift toward electrification business strategy without being bound by past successes and clearly presented
Honda’s Vision is perceived as a manifestation of such qualities. Going forward, I would like to continue
discerning the qualities of the ideal leader from an independent standpoint.

Multiplying Assets to Deliver Added Value to Society Beyond Expectations

The excitement surrounding the question “What will Honda come up with next?” encapsulates, I
believe, the image the wider society has of Honda. It is also the facet of Honda I most eagerly lookforward to. To respond to this sense of excitement, it is essential for the company to havecomprehensive strengths that are not limited to any one segment. Honda has continuously expanded■ Nominating Committee■ Compensation Committee■ Audit Committee

Outside Director

Outside Director

Outside Director

Chairperson

Fumiya Kokubu

Chairperson

Kazuhiro Higashi

Chairperson

Yoichiro Ogawa

its business beyond just motorcycles and automobiles, venturing into new segments such as power
products and aviation. I feel that by combining Honda’s abundant assets, we will be able to bring
Honda’s unique value to completely new areas.
We are in an era where tomorrow is not merely an extension of yesterday. What is required now is
the power of ideas and the intellectual power of the organization. I hope that the organization will
absorb the power generated by the combination of each individual’s abilities and meet the
expectation hidden in the question “What will Honda come up with next?”
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Business Strategy

5 Key Themes

Governance

Related Data

Governance | Messages from Outside Directors

Toward a Company that Leads Change with
Unique and Intriguing Ideas and Rapid
Management Decisions

A New Evolutionary Challengethat Goes beyond Honda’s Past

Honda’s company name does not contain the word “automobile.” This reflects the world’s expectation that

I believe that no other phrase embodies Honda’s values more than “The Power of Dreams,” which combines thethe company will create an interesting future that is not confined to the automobile. When I attend“power” of the engine, Honda’s founding business, and the “dreams” that have been realized so far, from mopeds toGeneral Shareholder Meetings, I see many investors who like Honda as a company and expect it to do

Super Cubs, automobiles, emission control vehicles in the United States and jet aircraft. I thought reconstructing thesesomething interesting. It is important to remain a company people and society want to exist, cherishing

two words that signify Honda’s driving force and adopting them as shared values globally was an excellent approach.

such a shared understanding in society. With a global business scale and long-term vision required, I

Of the keywords “Create,” “Transcend” and “Augment,” “Transcend” not only means freeing people from thebelieve that Honda aims to lead by creating change, not just catching up with it, based on a bold concept

constraints of time and space but can also be seen as transcending Honda itself.

from a global perspective. Speed is also an important factor in leading change. We believe that theadaptation of the company with nominating and other committees will not only ensure transparency andobjectivity in management but will also accelerate the speed of management decision-making andencourage change through the appropriate delegation of authority to Executive Officers.

Challenge of Staying at the Forefront in the Era of Rapid Evolution

Amidst these significant changes, rather than resting on past successes or maintaining the status quo, I believe
Honda’s aspiration is to continue being a company people and society want to exist beyond its past achievements.

Accelerating the Pace of Transformation with the Ability to Read
Changes and Make Appropriate Investment Decisions

While maintaining the unwavering trust that society places in Honda’s exceptional quality, it is imperative that Honda

The slogan “The Power of Dreams” has become so intertwined with Honda that the mere mention of theenhances its ability to recognize the rapid transformations occurring in the global manufacturing and digital industries,

word “dream” evokes the company. Redefining this slogan was thus undoubtedly a momentous decision. In

as well as the geopolitical risks that surround them, in the medium to long term. This involves making appropriate

an era of once-in-a-century transformation, I believe recognizing where Honda should be headed has been

investment decisions regarding the industry sector, partners, scale and timing in collaborations. Over the past year,

perceived as an essential process for Honda at present.

Honda has actively engaged in building partnerships and collaborations with other companies, emphasizing its unique

Today, the competition in EVs and automated driving is intensifying, but it is possible that in 5 or 10
years these technologies will be taken for granted. Honda must move ahead of this extremely rapid
progress. Should we do so while being overwhelmed by reality, or should we take the lead in challenging tocreate an exciting future? Honda is the latter, and I believe that is also Honda’s social responsibility. The
redefined global brand slogan should serve as a guidepost for challenges that envision such a future.

Establishing a Compensation System that Maximizes Honda’s Uniqueness
The Compensation Committee is working on implementing a compensation system that incentivizes
future-oriented, enthusiastic human resources and management based on a long-term perspective.

strengths and a sense of urgency. This represents a significant change for Honda, which has traditionally adhered to adoctrine of self-reliance in technology. We are confident that this change will lead to our next quantum leap in growth.

Evolution of Governance Leveraging the On-Site and In-Person Insights

The Audit Committee plays a part in the supervisory function fulfilled by the Board of Directors and contributes to theestablishment of a high-quality corporate governance system by supervising and auditing the duties executed by directors
and Executive Officers. In conducting audit activities from an independent standpoint, the Committee confirms how theexecutives and management carry out day-to-day operations, sometimes taking the opportunity to visit company sites.
In FY2023, we were given many opportunities for site visits, and I strongly sensed that the executive team was acutelyThis is the third year since we adopted the company with nominating and other committees. In the

conscious of the importance of ensuring that Outside Directors possess a thorough understanding of both cutting-edge

first year, we started to build the base of the system, and in the second year, we thoroughly discussed

research and the challenges we face. I believe that the time spent on site visits and the communication we engaged in werelong-term incentives. Now, the design of the system is finally taking shape. We will establish aextremely valuable to the Audit Committee as we were able to understand certain things only by actually going to a site,

compensation system that will enhance Honda’s corporate value while incorporating sustainability

seeing the products, deepening our technical understanding and communicating with associates rather than discussing

elements such as carbon neutrality and diversity. This will become the mechanism that brings out

issues without them at the headquarters. Moving forward, while striving to grasp the on-site situation, we will ensure the

Honda’s uniqueness to its fullest.

implementation of external environment analysis and risk management, thereby contributing to the establishment of ahigh-quality corporate governance structure.
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Related Data

Governance

Major Indicators
Financial Information

Non-Financial Information
Total GHG Emissions

Social(million t-CO2e)315.29300

303.12254.48288.23280.02

Scope 3*1
othercategories

200

Consolidated numberof associates

Percentage of female in
the Honda workplace

FY2019FY2020

FY2021

FY2022

FY2023219,722

218,674

211,374

204,035

197,039

13.9%

13.8%

14.0%

15.1%

15.9%

Scope 3*2
category 11

100

0

Sales Revenue

Scope 2
Scope 1
2019

2020

2021

2023

2022

（FY）

*1 The sum of emissions from categories 1, 2, 3, 4, 5, 6, 7, 9, 10, 12 and 15. As per
the GHG Protocol, Honda excludes categories 8, 13 and 14 from its calculations,as these categories are either not part of Honda corporate activities or
emissions from these categories are accounted for in other categories.
*2 The cumulative amount of GHGs that will have been emitted by products
sold by Honda in the applicable fiscal year (automobiles, motorcycles,
power products and aircraft) as a result of their use by customers from thetime they received those products until they dispose of them in the future.
Calculations cover the emission of all motorcycles, automobiles, power
products and aircraft sold worldwide under the Honda brand name.
These emissions are calculated using the following formula for each modeland adding the results: CO2 emissions intensity x Annual distance traveledor Annual usage in hours x Product lifetime in years x Annual unit sales.
· CO2 emissions intensity: Average annual mileage of each model set atsame value per region or Annual consumption of each model and Averageannual used time distinguish general business from business use· Annual mileage / Lifetime years of use: Referring to IEA estimation model,“MoMo,” etc.
· CO2 emission factor: Referring to the GHG calculation guidelines thatpublic authorities in each region issued. If there are no appropriate
guidelines, reference from the ones of Japanese.

(¥ billion)

20,00016,00016,907.7

15,888.6

14,931.0

13,170.5

14,552.6

12,0008,000

Governance

Number of Directors
Percentage of Outside
Directors

4,000

FY2019FY2020

FY2021

FY2022

FY2023

13

13

11

11

11

38.5%

38.5%

45.5%

45.5%

45.5%

0

2019

2020

2021

Operating Profit/Operating Margin■■ Operating profit (left)

2022

2023

■ ■ Operating margin (right)(¥ billion)

（%）

1,000
800

871.2
726.3

600

633.6

12

780.7

9

660.2

6

6.0

400

4.6
200
0

(FY)

2019

4.2

2020

5.0

2021

4.6
3

2022

2023

(FY)

0

R&D Expenditures
Amount of Water Intake/Waste Generated
Amount of water intake(1,000 m3 )Waste generated(1,000 t)(¥ billion)

1,000

FY2019FY2020

FY2021

FY2022

FY202336,20034,10029,30032,50033,200

1,690

1,550

1,360

1,410

1,420

Calculation method:Amount of water intake = Σ (Purchased from the water facilities +Groundwater intake + Rainwater utilization amount + Surface such as rivers
water intake)Waste generated = Σ (Industrial waste + general administrative waste +valuable resources emission)· However, regions outside of Japan are beyond the scope of data for industrial
waste (excluding harmful waste defined in accordance with regulations in
respective countries) and general administrative waste.
· Expressed in three significant digits

800

820.0

821.4

2019

2020

780.0

804.0

852.0

600
400
200
0

2021

2022

2023

(FY)

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Related Data

Governance

10-Year SummaryYears ended March 31

U.S. GAAP: Yen (millions)

Sales, profits and dividends

Net sales and other operating revenue

2013

IFRS: Yen (millions)

Sales, profits and dividends¥9,877,947

Sales revenue

2014

2015

¥12,506,091

2016

2017

2018

2019

2020

2021

2022

2023

¥13,328,099 ¥14,601,151 ¥13,999,200 ¥15,361,146 ¥15,888,617 ¥14,931,009 ¥13,170,519 ¥14,552,696 ¥16,907,725

Operating income

544,810

Operating profit

823,864

670,603503,376

840,711

833,558

726,370

633,637

660,208

871,232

Operating margin

5.5%

Operating margin

6.6%

5.0%

3.4%

6.0%

5.4%

4.6%

4.2%

5.0%

6.0%

4.6%

780,769

Income before income taxes and equity in income of affiliates

488,891

Share of profit of investments accounted for using the equity method

130,916

96,097126,001

164,793247,643

228,827

164,203272,734

202,512

117,445

Income taxes

178,976

Profit before income taxes

933,903806,237

635,450

1,006,986

1,114,973

979,375

789,918

914,053

1,070,190

879,565

Equity in income of affiliates

82,723

Income tax expense

267,992

245,139

229,092

327,592(13,666)

303,089

279,986

218,609309,489

162,256

Net income attributable to non-controlling interests(25,489)

Profit for the year

665,911561,098

406,358

679,394

1,128,639

676,286

509,932

695,444760,701

717,309

Net income attributable to Honda Motor Co., Ltd.

367,149

Profit for the year attributable to owners of the parent

624,703509,435

344,531

616,569

1,059,337

610,316455,746

657,425

707,067

651,416

Cash dividends paid during the period

129,765

Cash dividends paid during the period

142,381

158,601

158,601

162,205

174,221

194,271

196,795

145,090

188,402

213,475

Research and development expenses

560,270

Research and development expenses

625,698

670,331

719,810

659,918

730,734

820,037

821,478780,065

804,025852,067Interest expense

12,157

Interest expense

12,80318,194

18,146

12,471

12,97013,217

24,68913,877

16,867

36,112¥18,425,837 ¥18,229,294¥24,670,067

Assets, long-term debt and shareholders’ equity
Total assets

Assets, liabilities and equity¥18,958,123¥19,349,164¥20,419,122¥20,461,465¥21,921,030¥23,973,153

2,710,845

Financing liabilities (Non-current liabilities)

3,224,512

3,926,276

3,736,628

4,022,190

3,881,749

4,142,338

4,221,229

4,715,361

4,984,252

4,373,973

Total Honda Motor Co., Ltd. shareholders’ equity

5,043,500

Equity attributable to owners of the parent

6,335,534

7,108,627

6,761,433

7,295,296

7,933,538

8,267,720

8,012,259

9,082,306

10,472,824

11,184,250
578,063

Capital expenditures (excluding purchase of operating lease assets)¥13,635,357

Total assets

Long-term debt

630,408

Additions to property, plant and equipment¥16,048,438

803,231703,920

687,306

588,360

484,778

466,657

455,169

390,081366,829

Depreciation (excluding property on operating leases)

335,536

Depreciation

419,022451,052

486,410484,133

513,455

499,036

470,320

428,063438,269

512,501

Net cash provided by operating activities

800,744

Net cash provided by operating activities

449,108

1,020,404

1,390,995

885,073

987,671775,988979,415

1,072,379

1,679,622

2,129,022

Net cash used in investing activities(1,069,756)

Net cash used in investing activities(921,023)(840,496)(875,077)(650,618)(615,113)(577,555)(619,481)(796,881)(376,056)(678,060)

Net cash used in financing activities

119,567

Net cash used in financing activities

355,458

12,488(95,299)

115,423(174,334)

22,924(87,411)(283,980)(615,718)(1,468,359)

U.S. GAAP: Yen

Per common share

IFRS: YenPer common share
Profit for the year attributable to owners of the parent

Total Honda Motor Co., Ltd. shareholders’ equity
Basic¥203.71

Basic¥346.62¥282.66¥191.16¥342.10¥590.79¥345.99¥260.13¥380.75¥411.09¥384.02

Diluted203.71

Diluted346.62282.66191.16342.10590.79345.99260.13380.75411.09384.02

82

88

88

92

100

111

112

110

120

120

3,515.27

3,944.23

3,751.59

4,047.81

4,461.36

4,698.74

4,640.46

5,260.06

6,122.31

6,719.93

Dividends
Shareholders’ equity attributable to shareholders of the Company

76
2,798.37

Dividends
Shareholders’ equity attributable to owners of the parent

Yen (millions)

Sales
Sales amounts *Japan
Overseas
Total

Yen (millions)

Sales
Sales revenue*¥1,652,995

Japan

17%
8,224,952

Overseas

83%¥9,877,947

Total

100%

¥1,920,114¥1,800,439¥1,754,167¥1,799,772¥1,919,130¥2,042,891¥1,985,945¥1,849,268¥1,943,649

15%

14%

12%

13%

12%

13%

13%

14%

13%

12%

10,585,977

11,527,660

12,846,984

12,199,428

13,442,016

13,845,726

12,945,064

11,321,251

12,609,047

14,894,630

86%

88%

87%

88%

87%

87%

86%

87%

88%

85%
¥12,506,091
100%¥13,328,099 ¥14,601,151 ¥13,999,200 ¥15,361,146 ¥15,888,617 ¥14,931,009 ¥13,170,519 ¥14,552,696 ¥16,907,725
100%

100%

100%

100%

100%

100%

100%

100%

Thousands

Unit sales¥2,013,095

100%
Thousands

Unit sales

Motorcycle Business

15,494Motorcycle Business

17,00817,592

17,055

17,661

19,554

20,23819,34015,132

17,02718,757

Automobile Business

4,014

Automobile Business

4,340

4,367

4,743

5,028

5,199

5,323

4,790

4,546

4,074

3,687

Power Products Business

6,071

Power Products Business

6,018

5,983

5,965

6,121

6,262

6,301

5,701

5,623

6,200

5,645

199,368

204,730

208,399

211,915

215,638

219,722

218,674

211,374

204,035

197,039

Number of associates (Unit: persons)

190,338

Exchange rate (yen amounts per U.S. dollar)

Number of associates (Unit: persons)Exchange rate (yen amounts per U.S. dollar)

Rates for the period-end¥94

Rates for the period-end

¥103

¥120

¥113

¥112

¥106

¥111

¥109

¥111

¥122

¥134

Average rates for the period

83

Average rates for the period

100

110

120

108

111

111

109

106

112

136

* The geographic breakdown of sales amounts is based on the location of customers.

Honda Report 2023

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Business Strategy

5 Key Themes

Related Data

Governance

Company Overview
Company Overview (As of March 31, 2023)

Production Structure

Company name

Honda Motor Co., Ltd.

Number of Associates

Head office2-1-1 Minami-Aoyama,

Consolidated 197,039 /Non-consolidated 33,065

The Corporate Strategy Division plays the lead role in planning and formulating the overall composition of
the Integrated Report. With the cooperation of each division, we published the Integrated Report after

Minato-ku, Tokyo

Consolidated Subsidiaries 313 companies

holding repeated discussions regarding the value creation diagrams, concepts, composition, content andEstablished

September 1948

Affiliates Accounted for under the Equity Method

designs and obtaining the approval of management.

Capital86 billion yen

69 companies

This report has been structured to communicate to all stakeholders in and outside Honda its initiatives
for further improving its corporate value and how it will continue bringing joy to society.

Stock Information

Breakdown of Shareholders by Type

Domestic: Tokyo Stock Exchange

Number of Shares Authorized 7,086,000,000

Overseas: New York Stock Exchange

Total Number of Shares Issued 1,811,428,430(As of March 31, 2023)

Stock Exchange Listings

Securities Code Number

7267■ Individuals/others 
8.6%■ Financial institutions 
34.7%■ Securities companies 
3.2%■ Other domestic corporations 6.6%
■ Foreign investors
38.8%■ Treasury stock 
8.1%

Number of Shares per Trading Unit 100
Transfer Agent for Common Stock
4-5, Marunouchi 1-chome, Chiyoda-ku, Tokyo
Mitsubishi UFJ Trust and Banking Corporation

Chairperson Manabu Ozawa, Managing Executive Officer and Chief Officer, Corporate Strategy Operations
Head of Secretariat:
Sumihiro Takahashi, General Manager, Corporate Strategy Division
Production Secretariat:
Atsushi Tsukigata, Manager, Corporate Strategy Division
Junpei Katsuta
Riku Wada
Rumie Oishi

Major Shareholders (As of March 31, 2023)

Ayaka Omomo
Number of Shares Held(thousands)

Percentage against Total
Shares Issued (%)

The Master Trust Bank of Japan, Ltd. (Trust Account)

260,025

15.6

Moxley & Co. LLC

116,835

7.0

Custody Bank of Japan, Ltd. (Trust Account)

103,468

6.2

Individual or Organization

Editorial Committee■ 

Meiji Yasuda Life Insurance Company

49,492

3.0

SSBTC CLIENT OMNIBUS ACCOUNT

43,631

2.6

Tokio Marine & Nichido Fire Insurance Co., Ltd.

31,915

1.9

STATE STREET BANK WEST CLIENT – TREATY 505234

29,327

1.8

Nippon Life Insurance Company

28,666

1.7

Northern Trust CO. (AVFC) Re Silchester International Investors
International Value Equity Trust

26,328

1.6

JPMorgan Chase Bank 385781

22,752

1.4

Notes:
1 The number of shares described above rounds off figures of less than 1,000 shares.
2 Ownership percentages are calculated using the total number of shares issued minus treasury stock (146,163 thousand shares)
3 Moxley & Co. LLC is an official holder of stock of JPMorgan Chase Bank, which is a depositary institution for American
Depositary Receipts (ADRs).

Shinichi Kishimoto
Environment Planning Division, Corporate Planning Unit
Shunsuke Morioka

Corporate site
https://global.honda/en/

Five key factors
https://global.honda/en/stories/068/

Sustainability site
https://global.honda/en/sustainability/

Honda Stories
https://global.honda/en/stories/

Honda Report 2023

72

The power of dreams, how we move you.