EV losses push Honda (NYSE: HMC) to FY 2026 net loss but 2027 profit forecast

Rhea-AI Filing Summary

Honda Motor Co., Ltd. reported fiscal year 2026 sales revenue of JPY 21,796.6 billion, up 0.5% from the prior year, but swung to an operating loss of JPY 414.3 billion and a loss attributable to owners of the parent of JPY 423.9 billion, driven largely by EV-related losses in its Automobile business.

These EV-related impacts included over JPY 1,047.9 billion of losses and expenses in cost of sales plus additional charges in research and development and equity-method losses tied to canceled or scaled-back EV models in North America and China. Despite this, cash flows from operating activities rose sharply to JPY 1,135.2 billion, and cash and cash equivalents increased to JPY 5,118.5 billion.

Honda maintained a total annual dividend of JPY 70.00 per share for FY 2026 and forecasts FY 2027 sales revenue of JPY 23,150.0 billion, operating profit of JPY 500.0 billion, and earnings per share of JPY 66.79. The company also decided to indefinitely suspend its previously announced plan to build a comprehensive EV value chain in Ontario, Canada and announced governance changes, including a Board majority of outside directors and outside-led Nomination and Compensation Committees.

Positive

• Strong cash generation despite loss: Net cash provided by operating activities increased to JPY 1,135.2 billion, and cash and cash equivalents rose to JPY 5,118.5 billion, offering financial flexibility after a year of heavy EV-related charges.
• Return-to-profit guidance and dividend continuity: Honda maintained a total FY 2026 dividend of JPY 70.00 per share and forecasts FY 2027 operating profit of JPY 500.0 billion and earnings per share of JPY 66.79.

Negative

• Large EV-related charges and swing to loss: FY 2026 operating profit of JPY 1,213.5 billion in the prior year turned into an operating loss of JPY 414.3 billion, with loss attributable to owners of JPY 423.9 billion, mainly from EV-related impairments, disposals, and provisions.
• Pressure on balance sheet and equity ratio: While total assets rose to JPY 33,509.3 billion, equity attributable to owners fell to JPY 11,817.5 billion and the equity ratio declined from 40.1% to 35.3%.
• Strategic retreat in EV manufacturing footprint: Honda decided to indefinitely suspend its plan to build a comprehensive EV value chain in Ontario, Canada, after earlier postponement, highlighting ongoing uncertainty in its North American EV investment path.

Insights

Equity analyst

Large EV write-offs drive a rare annual loss, but cash generation and 2027 profit targets remain intact.

Honda delivered almost flat FY 2026 sales revenue of JPY 21,796.6 billion yet posted an operating loss of JPY 414.3 billion. The main driver was substantial EV-related losses in the Automobile business, including impairment and disposal of North American and Chinese EV assets and revised product plans.

Management quantified EV-related charges across cost of sales, research and development, and equity-method losses, alongside additional provisions of JPY 667.4 billion for EV-related obligations, including an onerous alliance contract. This pushed loss attributable to owners to JPY 423.9 billion and reduced the equity ratio to 35.3% as of March 31, 2026.

Despite the loss, operating cash flow improved to JPY 1,135.2 billion and cash and cash equivalents rose to JPY 5,118.5 billion, supporting a maintained annual dividend of JPY 70.00 per share. For FY 2027, Honda guides to a return to profitability with operating profit of JPY 500.0 billion and EPS of JPY 66.79. Actual progress versus these targets, particularly in the reworked electrification strategy, will be observable in subsequent fiscal disclosures.

Corporate governance & strategy specialist

Honda reshapes EV strategy and governance as market conditions shift and Ontario plans are suspended.

The company detailed how slower EV demand, policy changes in the United States, and intense competition in China led to canceling or scaling back multiple EV models and joint projects. These decisions underpinned large impairments, disposals, and provisions in FY 2026 and introduce uncertainty around future supplier-related payments disclosed as a subsequent event.

Strategically, Honda indefinitely suspended its plan to establish a comprehensive EV value chain in Ontario, Canada, after previously postponing it. At the same time, it is revising governance: ensuring a Board majority of outside directors, making Nomination and Compensation Committees entirely outside directors, and appointing an outside Chair of the Board. These steps align oversight with the scale of strategic change; future company filings should show how the new Board structure steers the updated electrification roadmap and manages remaining EV-related risks.

Key Figures

Sales revenue FY 2026: JPY 21,796.6 billion Operating profit (loss) FY 2026: JPY -414.3 billion Loss attributable to owners FY 2026: JPY -423.9 billion +5 more

8 metrics

Sales revenue FY 2026 JPY 21,796.6 billion Consolidated sales revenue for year ended March 31, 2026; up 0.5% YoY

Operating profit (loss) FY 2026 JPY -414.3 billion Consolidated operating loss for year ended March 31, 2026 vs JPY 1,213.5 billion profit in 2025

Loss attributable to owners FY 2026 JPY -423.9 billion Profit for the year attributable to owners of the parent, FY 2026

EV-related cost of sales losses JPY 1,047,918 million Losses and expenses in cost of sales for EV-related items in FY 2026

Operating cash flow FY 2026 JPY 1,135.2 billion Net cash provided by operating activities for year ended March 31, 2026

Cash and cash equivalents JPY 5,118.5 billion Cash and cash equivalents at March 31, 2026

Equity ratio 35.3% Ratio of equity attributable to owners to total assets as of March 31, 2026

FY 2027 operating profit forecast JPY 500.0 billion Forecast consolidated operating profit for year ending March 31, 2027

Key Terms

EV-related losses, impairment losses, onerous contract, investments accounted for using the equity method, +2 more

6 terms

EV-related losses financial

"Operating loss was JPY 414.3 billion... due mainly to the impact of EV (electric vehicle)-related losses as well as tariff impacts"

impairment losses financial

"Impairment losses (JPY 521,377 million) and losses on disposal (JPY 331,426 million) of non-financial assets mainly consist of the following items"

An impairment loss is an accounting write-down when a company determines an asset (like equipment, buildings, patents, or goodwill) is worth less than its recorded value, so its book value is reduced. For investors, impairments matter because they lower reported profits and asset balance, similar to recognizing that a car is worth far less than you expected; frequent or large impairments can signal poor returns on investments or deteriorating business prospects.

onerous contract financial

"Additional provisions of JPY 106,296 million were recognized for an onerous contract under the alliance agreement"

investments accounted for using the equity method financial

"Share of profit (loss) of investments accounted for using the equity method (JPY 124,128 million) includes... impairment losses"

American Depositary Shares financial

"Honda’s American Depositary Shares are listed and traded on the New York Stock Exchange"

American depositary shares (ADSs) are a way for investors in the United States to buy shares of foreign companies without dealing with international markets directly. They represent ownership in a foreign company's stock and are traded on U.S. stock exchanges, making it easier for American investors to buy, sell, and own parts of companies from around the world.

provisions for EV-related losses financial

"Provisions for EV-related losses include provisions recognized due to changes in the EV market environment and the reassessment of the automobile electrification strategy"

Earnings Snapshot

Sales revenue: JPY 21,796.6 billion · Guidance included

Fiscal year ended March 31, 2026

Sales revenue JPY 21,796.6 billion +0.5% YoY

Operating profit (loss) JPY -414.3 billion

Profit (loss) attributable to owners JPY -423.9 billion

Basic EPS JPY -106.06

Guidance

For the fiscal year ending March 31, 2027, Honda forecasts sales revenue of JPY 23,150.0 billion, operating profit of JPY 500.0 billion, profit for the year attributable to owners of JPY 260.0 billion, and earnings per share of JPY 66.79.

Form 6-K: How Foreign Companies Report to the SEC →

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No.1-7628

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF MAY 2026

COMMISSION FILE NUMBER: 1-07628

HONDA GIKEN KOGYO KABUSHIKI KAISHA

(Name of registrant)

HONDA MOTOR CO., LTD.

(Translation of registrant’s name into English)

2-3, Toranomon 2-chome, Minato-ku, Tokyo 105-8404, Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F ☒  Form 40-F ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ☐

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Contents

Exhibit 1:

Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal year ended March 31, 2026.

Exhibit 2:

Notice Concerning Differences between Forecasts and Actual Consolidated Financial Results for the Fiscal Year Ended March 31, 2026

Exhibit 3:

Notice Concerning Changes in Executives and the Board of Directors Structure

Exhibit 4:

Announcement Regarding the Indefinite Suspension of its Plan to Establish Comprehensive Electric Vehicle Value Chain in Ontario, Canada

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

HONDA GIKEN KOGYO KABUSHIKI KAISHA

(HONDA MOTOR CO., LTD.)

/s/ Koji Ito

Koji Ito

General Manager

Finance Division

Honda Motor Co., Ltd.

Date: May 14, 2026

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Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (IFRS)

May 14, 2026

Company name		:  Honda Motor Co., Ltd.
Listing		:  Tokyo Stock Exchange
Securities code		:  7267
URL		:  https://global.honda/en/investors/
Representative		:  Toshihiro Mibe, Director, President and Representative Executive Officer
Inquiries		:  Sumihiro Takahashi, Head of Accounting and Finance Unit Tel. +81-3-3423-1111
Scheduled date of annual general meeting of shareholders		:  To be determined
Scheduled date to commence dividend payments		:  June 9, 2026
Scheduled date to file annual securities report		:  To be determined
Supplemental materials prepared for consolidated financial results		:  Yes
Holdings of financial results meeting		:  Yes

(Amounts are rounded to the nearest million yen)

1. Consolidated Financial Results for the Fiscal Year Ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

(1) Consolidated operating results (% of change from the previous fiscal year)

		Sales revenue								Operating profit								Profit before income taxes								Profit for the year								Profit for the year attributable to owners of the parent								Comprehensive income for the year
Fiscal year ended			Yen (millions)				%				Yen (millions)				%				Yen (millions)				%				Yen (millions)				%				Yen (millions)				%				Yen (millions)				%
March 31, 2026			21,796,610				0.5				-414,346				—				-403,300				—				-353,023				—				-423,941				—				539,347				-29.6
March 31, 2025			21,688,767				6.2				1,213,486				-12.2				1,317,640				-19.8				903,034				-23.6				835,837				-24.5				766,276				-63.1

		Earnings per share attributable to owners of the parent - Basic				Earnings per share attributable to owners of the parent  - Diluted				Return on equity attributable to owners of the parent				Ratio of profit before income taxes to total assets				Ratio of operating profit to sales revenue
Fiscal year ended			Yen				Yen				%				%				%
March 31, 2026			-106.06				-106.06				-3.5				-1.3				-1.9
March 31, 2025			178.93				178.93				6.7				4.4				5.6

Reference: Share of profit (loss) of investments accounted for using the equity method

 Fiscal year ended March 31, 2026: JPY -162,080 million    Fiscal year ended March 31, 2025: JPY 982 million

Explanatory notes:

 Basic and diluted earnings per share are calculated based on the profit for the year attributable to owners of the parent.

(2) Consolidated financial position

		Total assets				Total equity				Equity attributable to owners of the parent				Ratio of equity attributable to owners of the parent to total assets				Equity per share attributable to owners of the parent
As of			Yen (millions)				Yen (millions)				Yen (millions)				%				Yen
March 31, 2026			33,509,285				12,148,072				11,817,512				35.3				3,035.91
March 31, 2025			30,775,867				12,627,822				12,326,529				40.1				2,835.96

(3) Consolidated cash flows

		Cash flows from operating activities				Cash flows from investing activities				Cash flows from financing activities				Cash and cash equivalents at end of year
Fiscal year ended			Yen (millions)				Yen (millions)				Yen (millions)				Yen (millions)
March 31, 2026			1,135,261				-852,166				-36,917				5,118,477
March 31, 2025			292,152				-941,966				280,477				4,528,795

2. Dividends

		Annual dividends per share																				Total amount of dividends				Payout ratio (Consolidated)				Ratio of dividends on equity attributable to owners of the parent
		First quarter-end				Second quarter-end				Third quarter-end				Fiscal year-end				Total
			Yen				Yen				Yen				Yen				Yen				Yen (millions)				%				%
Fiscal year ended March 31, 2025			—				34.00				—				34.00				68.00				307,347				38.0				2.5
Fiscal year ended March 31, 2026			—				35.00				—				35.00				70.00				272,860				—				2.4
Fiscal year ending March 31, 2027 (forecast)			—				35.00				—				35.00				70.00								104.8

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2027 (from April 1, 2026 to March 31, 2027)

(% of change from the previous fiscal year)

		Sales revenue								Operating profit								Profit before income taxes								Profit for the year								Profit for the year attributable to owners of the parent								Earnings per share attributable to owners of the parent
			Yen (millions)				%				Yen (millions)				%				Yen (millions)				%				Yen (millions)				%				Yen (millions)				%				Yen
Full-year			23,150,000				6.2				500,000				—				500,000				—				335,000				—				260,000				—				66.79

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*Explanatory notes

(1) Significant changes in the scope of consolidation during the period: None

Newly included:		- companies		(Company name: -)
Excluded:		- companies		(Company name: -)

(2) Changes in accounting policies and changes in accounting estimates

(i)		Changes in accounting policies required by IFRS			:			None
(ii)		Changes in accounting policies due to other reason			:			None
(iii)		Changes in accounting estimates			:			None

(3) Number of issued shares (common shares)

(i) Number of issued shares at the end of the period (including treasury stock)

As of March 31, 2026		4,533,000,000 shares
As of March 31, 2025		5,280,000,000 shares

(ii) Number of treasury stock at the end of the period

As of March 31, 2026		640,419,559 shares
As of March 31, 2025		933,490,429 shares

(iii) Average number of shares outstanding during the period

Fiscal year ended March 31, 2026		3,997,276,887 shares
Fiscal year ended March 31, 2025		4,671,383,489 shares

[Reference] Overview of non-consolidated financial results

1. Non-consolidated operating results for the year ended March 31, 2026 (from April 1, 2025 to March 31, 2026)

(1) Non-consolidated operating results (% of change from the previous fiscal year)

		Net sales								Operating profit								Ordinary profit								Profit for the year
Fiscal year ended			Yen (millions)				%				Yen (millions)				%				Yen (millions)				%				Yen (millions)				%
March 31, 2026			4,406,974				-4.1				-160,848				—				529,933				-48.3				-194,827				—
March 31, 2025			4,596,209				1.1				-12,992				—				1,025,746				19.4				930,050				34.3
		Basic earnings per share								Diluted earnings per share
Fiscal year ended			Yen								Yen
March 31, 2026			-48.74								—
March 31, 2025			199.10								—
(2) Non-consolidated financial position
		Total assets								Net assets								Equity-to-asset ratio								Net assets per share
As of			Yen (millions)								Yen (millions)								%								Yen
March 31, 2026			4,446,052								1,896,051								42.6								487.09
March 31, 2025			4,501,503								3,033,806								67.4								697.99

Reference: Equity

As of March 31, 2026: JPY 1,896,051 million   As of March 31, 2025: JPY 3,033,806 million

Explanatory notes:

For non-consolidated operating results, amounts in the millions of yen are rounded down to the nearest million yen.

* Financial results reports are exempt from audit conducted by certified public accountants or an audit firm.

* Proper use of earning forecasts, and other special matters

This announcement contains “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that the actual results of the Company could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in the principal markets of the Company, its consolidated subsidiaries and its affiliates accounted for by the equity-method, and fluctuation of foreign exchange rates, as well as other factors detailed from time to time.

For the assumptions of forecasts, please refer to page 3 [2] Forecasts for the Fiscal Year Ending March 31, 2027.

Honda’s American Depositary Shares are listed and traded on the New York Stock Exchange. One American Depositary Share represents three common shares.

This document, Form 6-K (to be submitted to the U.S. Securities and Exchange Commission), is submitted to Tokyo Stock Exchange as English translation of the Japanese original. Therefore, there are some discrepancies between this translated document and the Japanese original.

For supplemental materials prepared for consolidated financial results and other information, please refer to Honda’s Investor Relations website (URL https://global.honda/en/investors/).

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TABLE OF CONTENTS

Consolidated Financial Results for the Fiscal Year Ended March 31, 2026

1. Overview of Consolidated Financial Results			2
[1] Overview of Consolidated Operating Results and Consolidated Financial Position			2
[2] Forecasts for the Fiscal Year Ending March 31, 2027			3
2. Basic Rationale for Selection of Accounting Standards			4
3. Consolidated Financial Statements and Notes to Consolidated Financial Statements			5
[1] Consolidated Statements of Financial Position			5
[2] Consolidated Statements of Income and Consolidated Statements of Comprehensive Income			6
Consolidated Statements of Income			6
Consolidated Statements of Comprehensive Income			7
[3] Consolidated Statements of Changes in Equity			8
[4] Consolidated Statements of Cash Flows			9
[5] Assumptions for Going Concern			10
[6] Notes to Consolidated Financial Statements			11

—1—

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1. Overview of Consolidated Financial Results

[1] Overview of Consolidated Operating Results and Consolidated Financial Position

Consolidated Operating Results

Honda’s consolidated sales revenue for the fiscal year ended March 31, 2026 increased by 0.5%, to JPY 21,796.6 billion from the fiscal year ended March 31, 2025, due mainly to increased sales revenue in Motorcycle business, which was partially offset by decreased sales revenue in Automobile business as well as negative foreign currency translation effects. Operating loss was JPY 414.3 billion, a decrease of JPY 1,627.8 billion from the previous fiscal year, due mainly to the impact of EV (electric vehicle)-related losses as well as tariff impacts, which was partially offset by increased profit attributable to price and cost impacts. Loss before income taxes was JPY 403.3 billion, a decrease of JPY 1,720.9 billion from the previous fiscal year, due mainly to the impact of EV-related losses. Loss for the year attributable to owners of the parent was JPY 423.9 billion, a decrease of JPY 1,259.7 billion from the previous fiscal year. For the impact of EV-related losses, please refer to 3. Consolidated Financial Statements and Notes to Consolidated Financial Statements [6] Notes to Consolidated Financial Statements [B] Segment Information.

Consolidated Financial Position

Total assets as of March 31, 2026 increased by JPY 2,733.4 billion, to JPY 33,509.2 billion from March 31, 2025 due mainly to increased equipment on operating leases as well as positive foreign currency translation effects. Total liabilities increased by JPY 3,213.1 billion, to JPY 21,361.2 billion from March 31, 2025 due mainly to increased financing liabilities as well as positive foreign currency translation effects. Total equity decreased by JPY 479.7 billion, to JPY 12,148.0 billion from March 31, 2025 due mainly to a decrease attributable to acquisition of the company’s own shares as well as a decrease in retained earnings attributable to loss for the year, which was partially offset by positive foreign currency translation effects.

Consolidated Cash Flows

Consolidated cash and cash equivalents on March 31, 2026 increased by JPY 589.6 billion from March 31, 2025, to JPY 5,118.4 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the previous fiscal year, are as follows:

Net cash provided by operating activities amounted to JPY 1,135.2 billion of cash inflows. Cash inflows from operating activities increased by JPY 843.1 billion compared with the previous fiscal year, due mainly to a decrease in payments for parts and raw materials as well as an increase in collections of receivables from financial services.

Net cash used in investing activities amounted to JPY 852.1 billion of cash outflows. Cash outflows from investing activities decreased by JPY 89.8 billion compared with the previous fiscal year, due mainly to a decrease in payments for acquisitions of investments accounted for using the equity method.

Net cash used in financing activities amounted to JPY 36.9 billion of cash outflows. Cash outflows from financing activities increased by JPY 317.3 billion compared with the previous fiscal year, due mainly to a decrease in proceeds from financing liabilities, which was partially offset by decreased repayments of financing liabilities.

—2—

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[2] Forecasts for the Fiscal Year Ending March 31, 2027

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2027, Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2027		Yen (billions)				Changes from FYE Mar. 31, 2026
Sales revenue			23,150.0				6.2	%
Operating profit			500.0				—
Profit before income taxes			500.0				—
Profit for the year			335.0				—
Profit for the year attributable to owners of the parent			260.0				—

Note: The forecasts are based on the assumption that the average exchange rates for the Japanese yen to the U.S. dollar will be JPY 145 for the full year ending March 31, 2027.

The reasons for the increases or decreases in the forecasts of the operating profit for the fiscal year ending March 31, 2027 from the previous year are as follows.

				Yen (billions)
Sales impacts					+ 266.7
Price and cost impacts					- 313.0
Expenses					- 8.0
R&D expenses					+ 10.0
Currency effect					- 142.0
Tariff impact					+ 147.0
EV-related losses for the fiscal year ended March 31, 2026					+ 1,453.6
EV-related losses for the fiscal year ending March 31, 2027					- 500.0
Operating profit compared with the fiscal year ended March 31, 2026					+ 914.3

For more details of EV-related losses, please refer to 3. Consolidated Financial Statements and Notes to Consolidated Financial Statements [6] Notes to Consolidated Financial Statements [B] Segment Information.

This announcement contains “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that the actual results of the Company could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in the principal markets of the Company, its consolidated subsidiaries and its affiliates accounted for by the equity-method, and fluctuation of foreign exchange rates, as well as other factors detailed from time to time. The various factors for increases and decreases in profit have been classified in accordance with a method that Honda considers reasonable.

—3—

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2. Basic Rationale for Selection of Accounting Standards

The Company adopted IFRS for the Company’s consolidated financial statements from the fiscal year ended March 31, 2015 which have been included in the annual securities report (to be submitted to the Financial Services Agency of Japan) and Form 20-F (to be submitted to the U.S. Securities and Exchange Commission), aiming at improving comparability of financial information across international capital markets as well as standardization of financial information and enhancing efficiency of financial reporting of the Company and its consolidated subsidiaries.

—4—

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3. Consolidated Financial Statements and Notes to Consolidated Financial Statements

[1] Consolidated Statements of Financial Position

March 31, 2025 and 2026

		Yen (millions)
		Mar. 31, 2025				Mar. 31, 2026
Assets
Current assets:
Cash and cash equivalents			4,528,795				5,066,828
Trade receivables			1,160,847				1,270,476
Receivables from financial services			2,755,800				3,057,235
Other financial assets			208,478				296,974
Inventories			2,470,590				2,531,166
Other current assets			563,252				852,073
Total current assets			11,687,762				13,074,752
Non-current assets:
Investments accounted for using the equity method			1,242,614				1,128,118
Receivables from financial services			6,172,817				6,836,261
Other financial assets			873,459				1,211,519
Equipment on operating leases			5,748,187				6,433,793
Property, plant and equipment			3,209,921				3,196,382
Intangible assets			1,126,019				784,760
Deferred tax assets			143,499				301,011
Other non-current assets			571,589				542,689
Total non-current assets			19,088,105				20,434,533
Total assets			30,775,867				33,509,285
Liabilities and Equity
Current liabilities:
Trade payables			1,663,487				1,781,598
Financing liabilities			4,497,747				5,004,712
Accrued expenses			728,935				996,653
Other financial liabilities			276,861				264,598
Income taxes payable			108,562				109,036
Provisions			388,441				948,252
Other current liabilities			951,124				1,099,631
Total current liabilities			8,615,157				10,204,480
Non-current liabilities:
Financing liabilities			6,953,520				8,475,151
Other financial liabilities			301,439				316,498
Retirement benefit liabilities			288,472				309,885
Provisions			667,274				735,224
Deferred tax liabilities			718,084				677,391
Other non-current liabilities			604,099				642,584
Total non-current liabilities			9,532,888				11,156,733
Total liabilities			18,148,045				21,361,213
Equity:
Common stock			86,067				86,067
Capital surplus			205,299				204,894
Treasury stock			(1,272,845	)			(896,927	)
Retained earnings			11,122,187				9,375,989
Other components of equity			2,185,821				3,047,489
Equity attributable to owners of the parent			12,326,529				11,817,512
Non-controlling interests			301,293				330,560
Total equity			12,627,822				12,148,072
Total liabilities and equity			30,775,867				33,509,285

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

Consolidated Statements of Income

For the years ended March 31, 2025 and 2026

		Yen (millions)
		Year ended Mar. 31, 2025				Year ended Mar. 31, 2026
Sales revenue			21,688,767				21,796,610
Operating costs and expenses:
Cost of sales			(17,024,788	)			(18,193,428	)
Selling, general and administrative			(2,351,011	)			(2,476,882	)
Research and development			(1,099,482	)			(1,540,646	)
Total operating costs and expenses			(20,475,281	)			(22,210,956	)
Operating profit (loss)			1,213,486				(414,346	)
Share of profit (loss) of investments accounted for using the equity method			982				(162,080	)
Finance income and finance costs:
Interest income			191,131				179,466
Interest expense			(54,907	)			(83,562	)
Other, net			(33,052	)			77,222
Total finance income and finance costs			103,172				173,126
Profit (loss) before income taxes			1,317,640				(403,300	)
Income tax expense			(414,606	)			50,277
Profit (loss) for the year			903,034				(353,023	)
Profit (loss) for the year attributable to:
Owners of the parent			835,837				(423,941	)
Non-controlling interests			67,197				70,918
		Yen
Earnings (loss) per share attributable to owners of the parent
Basic and diluted			178.93				(106.06	)

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Consolidated Statements of Comprehensive Income

For the years ended March 31, 2025 and 2026

		Yen (millions)
		Year ended Mar. 31, 2025				Year ended Mar. 31, 2026
Profit (loss) for the year			903,034				(353,023	)
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans			26,727				(15,046	)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income			(13,477	)			131,114
Share of other comprehensive income of investments accounted for using the equity method			(6,499	)			3,480
Items that may be reclassified subsequently to profit or loss
Net changes in revaluation of financial assets measured at fair value through other comprehensive income			415				(71	)
Exchange differences on translating foreign operations			(162,325	)			701,925
Cash flow hedges			—				11,021
Share of other comprehensive income of investments accounted for using the equity method			18,401				59,947
Total other comprehensive income, net of tax			(136,758	)			892,370
Comprehensive income for the year			766,276				539,347
Comprehensive income for the year attributable to:
Owners of the parent			699,150				445,315
Non-controlling interests			67,126				94,032

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[3] Consolidated Statements of Changes in Equity

For the years ended March 31, 2025 and 2026

		Yen (millions)
		Equity attributable to owners of the parent																								Non-controlling interests				Total equity
		Common stock				Capital surplus				Treasury stock				Retained earnings				Other components of equity				Total
Balance as of April 1, 2024			86,067				205,073				(550,808	)			10,644,213				2,312,450				12,696,995				308,877				13,005,872
Comprehensive income for the year
Profit for the year															835,837								835,837				67,197				903,034
Other comprehensive income, net of tax																			(136,687	)			(136,687	)			(71	)			(136,758	)
Total comprehensive income for the year															835,837				(136,687	)			699,150				67,126				766,276
Reclassification to retained earnings															(10,058	)			10,058				—								—
Transactions with owners and other
Dividends paid															(347,805	)							(347,805	)			(78,692	)			(426,497	)
Purchases of treasury stock											(722,365	)											(722,365	)							(722,365	)
Disposal of treasury stock											328												328								328
Share-based payment transactions							226																226								226
Equity transactions and others																											3,982				3,982
Total transactions with owners and other							226				(722,037	)			(347,805	)							(1,069,616	)			(74,710	)			(1,144,326	)
Balance as of March 31, 2025			86,067				205,299				(1,272,845	)			11,122,187				2,185,821				12,326,529				301,293				12,627,822
Comprehensive income for the year
Profit (loss) for the year															(423,941	)							(423,941	)			70,918				(353,023	)
Other comprehensive income, net of tax																			869,256				869,256				23,114				892,370
Total comprehensive income for the year															(423,941	)			869,256				445,315				94,032				539,347
Reclassification to retained earnings															7,588				(7,588	)			—								—
Transactions with owners and other
Dividends paid															(284,390	)							(284,390	)			(64,765	)			(349,155	)
Purchases of treasury stock											(670,933	)											(670,933	)							(670,933	)
Disposal of treasury stock											663												663								663
Cancellation of treasury stock											1,046,188				(1,046,188	)							—								—
Share-based payment transactions							(405	)															(405	)							(405	)
Total transactions with owners and other							(405	)			375,918				(1,330,578	)							(955,065	)			(64,765	)			(1,019,830	)
Other changes															733								733								733
Balance as of March 31, 2026			86,067				204,894				(896,927	)			9,375,989				3,047,489				11,817,512				330,560				12,148,072

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[4] Consolidated Statements of Cash Flows

For the years ended March 31, 2025 and 2026

		Yen (millions)
		Year ended Mar. 31, 2025				Year ended Mar. 31, 2026
Cash flows from operating activities:
Profit (loss) before income taxes			1,317,640				(403,300	)
Depreciation, amortization and impairment losses excluding equipment on operating leases			742,863				1,303,263
Loss (gain) on disposal of property, plant and equipment and intangible assets			22,079				335,897
Share of (profit) loss of investments accounted for using the equity method			(982	)			162,080
Finance income and finance costs, net			(169,976	)			(61,735	)
Interest income and interest costs from financial services, net			(171,854	)			(191,268	)
Changes in assets and liabilities
Trade receivables			69,199				(56,262	)
Inventories			(79,464	)			81,624
Trade payables			112,635				29,534
Accrued expenses			72,803				87,069
Provisions and retirement benefit liabilities			128,447				525,725
Receivables from financial services			(904,344	)			(246,923	)
Equipment on operating leases			(690,110	)			(365,571	)
Other assets and liabilities			(58,502	)			(21,550	)
Other, net			(14	)			(15,357	)
Dividends received			126,343				90,083
Interest received			737,648				790,595
Interest paid			(439,081	)			(495,270	)
Income taxes paid, net of refunds			(523,178	)			(413,373	)
Net cash provided by operating activities			292,152				1,135,261
Cash flows from investing activities:
Payments for additions to property, plant and equipment			(510,803	)			(612,065	)
Payments for additions to and internally developed intangible assets			(336,632	)			(285,480	)
Proceeds from sales of property, plant and equipment and intangible assets			12,258				31,952
Proceeds from sales of subsidiaries, net of cash and cash equivalents disposed of			—				3,596
Payments for acquisitions of investments accounted for using the equity method			(157,013	)			(74,800	)
Proceeds from sales of investments accounted for using the equity method			21,486				29,708
Payments for acquisitions of other financial assets			(419,222	)			(242,033	)
Proceeds from sales and redemptions of other financial assets			447,960				296,956
Net cash used in investing activities			(941,966	)			(852,166	)
Cash flows from financing activities:
Proceeds from short-term financing liabilities			8,988,964				7,542,779
Repayments of short-term financing liabilities			(8,648,271	)			(8,228,184	)
Proceeds from long-term financing liabilities			3,809,432				4,585,687
Repayments of long-term financing liabilities			(2,658,526	)			(2,824,118	)
Dividends paid to owners of the parent			(347,805	)			(284,390	)
Dividends paid to non-controlling interests			(67,186	)			(78,199	)
Purchases and sales of treasury stock, net			(722,037	)			(670,270	)
Repayments of lease liabilities			(78,137	)			(80,222	)
Other, net			4,043				—
Net cash provided by (used in) financing activities			280,477				(36,917	)
Effect of exchange rate changes on cash and cash equivalents			(56,433	)			343,504
Net change in cash and cash equivalents			(425,770	)			589,682
Cash and cash equivalents at beginning of year			4,954,565				4,528,795
Cash and cash equivalents at end of year			4,528,795				5,118,477

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[5] Assumptions for Going Concern

None

—10—

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[6] Notes to Consolidated Financial Statements

[A] Changes in Presentation

Consolidated statements of cash flows

For the year ended March 31, 2025, loss (gain) on disposal of property, plant and equipment and intangible assets was included in “Other, net” within cash flows from operating activities. Considering the increase in quantitative materiality of this item, this has been presented as a separate line item from the year ended March 31, 2026. To reflect this change in presentation, the consolidated statements of cash flows for the year ended March 31, 2025 has been reclassified accordingly. As a result of this reclassification, JPY 22,065 million previously presented as “Other, net” within cash flows from operating activities for the year ended March 31, 2025 has been presented separately into JPY 22,079 million of “Loss (gain) on disposal of property, plant and equipment and intangible assets” and JPY -14 million of “Other, net” within cash flows from operating activities.

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[B] Segment Information

Based on Honda’s organizational structure and characteristics of products and services, Honda discloses segment information in four categories: Reportable segments of Motorcycle business, Automobile business and Financial services business, and other segments that are not reportable. The other segments are combined and disclosed in Power products and other businesses. Segment information is based on the components of Honda for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The accounting policies used for segment information are consistent with the accounting policies used in the Company’s consolidated financial statements.

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

Segment		Principal products and services		Functions
Motorcycle Business		Motorcycles, all-terrain vehicles (ATVs), side-by-sides (SxS) and relevant parts		Research and development Manufacturing Sales and related services
Automobile Business		Automobiles and relevant parts		Research and development Manufacturing Sales and related services
Financial Services Business		Financial services		Retail loan and lease related to Honda products Others
Power Products and Other Businesses		Power products and relevant parts, and others		Research and development Manufacturing Sales and related services Others

Segment information based on products and services

As of and for the year ended March 31, 2025

		Yen (millions)
		Motorcycle Business				Automobile Business				Financial Services Business				Power Products and Other Businesses				Segment Total				Reconciling Items				Consolidated
Sales revenue:
External customers			3,626,603				14,169,240				3,507,766				385,158				21,688,767				—				21,688,767
Intersegment			—				298,616				4,457				29,452				332,525				(332,525	)			—
Total			3,626,603				14,467,856				3,512,223				414,610				22,021,292				(332,525	)			21,688,767
Segment profit (loss)			663,443				243,853				315,634				(9,444	)			1,213,486				—				1,213,486
Segment assets			2,248,809				11,874,764				15,713,348				576,347				30,413,268				362,599				30,775,867
Depreciation and amortization			72,443				642,506				881,500				16,356				1,612,805				—				1,612,805
Capital expenditures			94,688				797,831				3,125,821				18,468				4,036,808				—				4,036,808

As of and for the year ended March 31, 2026

		Yen (millions)
		Motorcycle Business				Automobile Business				Financial Services Business				Power Products and Other Businesses				Segment Total				Reconciling Items				Consolidated
Sales revenue:
External customers			4,018,837				13,863,362				3,529,484				384,927				21,796,610				—				21,796,610
Intersegment			—				303,548				3,259				35,449				342,256				(342,256	)			—
Total			4,018,837				14,166,910				3,532,743				420,376				22,138,866				(342,256	)			21,796,610
Segment profit (loss)			731,926				(1,411,140	)			275,532				(10,664	)			(414,346	)			—				(414,346	)
Segment assets			2,713,735				12,484,767				17,282,581				593,582				33,074,665				434,620				33,509,285
Depreciation and amortization			74,343				601,267				958,880				16,055				1,650,545				—				1,650,545
Capital expenditures			135,989				879,031				2,766,150				23,539				3,804,709				—				3,804,709

Explanatory notes:

1. Intersegment sales revenues are generally made at values that approximate arm’s-length prices.

2. Reconciling items include elimination of intersegment transactions and balances as well as unallocated corporate assets. Unallocated corporate assets, included in reconciling items as of March 31, 2025 and 2026 amounted to JPY 979,954 million and JPY 976,245 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

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Impact on Automobile business due to changes in the EV market environment

The Company has been promoting initiatives toward electrification of its automobile business with the aim of achieving carbon neutrality for all products and corporate activities Honda is involved in by 2050. However, the business environment surrounding the Company has been changing rapidly, and the outlook remains uncertain. In the United States, the expansion of the EV market has slowed due to revisions to EV incentives and the easing of fossil fuel regulations, resulting in impacts such as a decrease in EV sales volume and an increase in sales incentives. Given the changes in the market environment, as part of the revision of its product launch plans, the Company decided during the year ended March 31, 2026 to cancel the launch and development of a certain EV model, and to discontinue production or reduce production volume for EV models jointly developed under a certain alliance agreement. Furthermore, on March 12, 2026, the Company reassessed its automobile electrification strategy and made additional decisions, including the cancellation of development and market launch of certain EV models that had been planned for production in North America. In addition, for certain EV models jointly developed with our joint venture and scheduled to be manufactured by the Company’s subsidiary in North America, the joint venture decided to cancel their development and market launch. In China, while the EV market continues to grow, competition has intensified due to the rapid emergence of new EV manufacturers. Under such a challenging and competitive environment, the Company has also revised its product launch plans for certain EV models.

As a result, for the year ended March 31, 2026, the Company and its certain consolidated subsidiaries recognized losses and expenses of JPY 1,047,918 million in cost of sales, JPY 7,889 million in selling, general and administrative expenses, JPY 397,870 million in research and development expenses, and JPY 124,128 million in share of profit (loss) of investments accounted for using the equity method in the consolidated statements of income. These losses and expenses are included in Automobile business. The breakdown of these losses and expenses is as follows.

Impairment losses and losses on disposal of non-financial assets

Impairment losses (JPY 521,377 million) and losses on disposal (JPY 331,426 million) of non-financial assets mainly consist of the following items and are recorded in cost of sales of JPY 454,933 million and research and development expenses of JPY 397,870 million in the consolidated statements of income for the year ended March 31, 2026.

- Impairment losses (JPY 521,377 million): Impairment losses mainly on property, plant and equipment and other non-current assets (including manufacturing equipment) related to EV models in North America for which the Company decided to discontinue production or cancel development and market launch, as well as impairment losses on intangible assets (capitalized development costs) related to EV models discontinued in North America and certain EV models in China. The recoverable amount of these non-financial assets is measured at fair value less costs of disposal; however, as the assets cannot be practically sold or repurposed, the Company assessed the fair value less costs of disposal as zero. A Level 3 fair value hierarchy is assigned since observable inputs are not available.

- Losses on disposal (JPY 331,426 million): Losses resulting from derecognition of intangible assets (capitalized development costs) related to EV models in North America for which development was canceled prior to market launch.

For certain EV models in North America for which development and market launch were canceled, the Company’s subsidiary in North America is entitled to reimbursement from the joint venture for the expenditures incurred due to the cancellation. The reimbursement has been recognized as other receivables, which is presented within trade receivables in the consolidated statements of financial position and is included in cost of sales in the consolidated statements of income. In addition, the reimbursement costs recognized by the joint venture are included in the share of profit (loss) of investments accounted for using the equity method.

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Share of profit (loss) of investments accounted for using the equity method

Share of profit (loss) of investments accounted for using the equity method (JPY 124,128 million) includes, in addition to the reimbursement costs recognized by the joint venture described above, impairment losses of JPY 90,882 million on investments accounted for using the equity method related to certain joint ventures in China.

Provisions for EV-related losses

Provisions for EV-related losses include provisions recognized due to changes in the EV market environment and the reassessment of the automobile electrification strategy. Additional provisions (JPY 667,366 million) mainly consist of the following items:

- Additional provisions of JPY 106,296 million were recognized for an onerous contract under the alliance agreement, primarily due to a shift in the United States government policy, including the imposition of tariffs, the elimination of tax incentives for EV purchases, and the easing of emissions regulations, as well as a reduction in production volume, which resulted in decreased economic benefits and increased costs.

- Additional provisions of JPY 561,070 million were recognized for losses or expenses arising from contracts entered into with other parties in relation to EV models, including compensation related to alliance agreements and contracts for parts supply and procurement.

For information on subsequent event related to the reassessment of the automobile electrification strategy, see [E] Subsequent Event.

[C] Cash and Cash Equivalents

The reconciliation of the amount of cash and cash equivalents between consolidated statements of financial position and consolidated statements of cash flows is as follows.

		Yen (millions)
		As of March 31, 2026
Cash and cash equivalents in the consolidated statements of financial position			5,066,828
Cash and cash equivalents included in assets held for sale			51,649
Cash and cash equivalents in the consolidated statements of cash flows			5,118,477

Assets held for sale as of March 31, 2026 are presented in other current assets in the consolidated statements of financial position.

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[D] Information about per common share

Equity per share attributable to owners of the parent as of March 31, 2025 and 2026 are calculated based on the following information.

		2025				2026
Equity attributable to owners of the parent (millions of yen)			12,326,529				11,817,512
The number of shares outstanding at the end of the year (excluding treasury stock) (shares)			4,346,509,571				3,892,580,441
Equity per share attributable to owners of the parent (yen)			2,835.96				3,035.91

Earnings (loss) per share attributable to owners of the parent for the years ended March 31, 2025 and 2026 are calculated based on the following information. There were no significant potentially dilutive common shares outstanding for the years ended March 31, 2025 and 2026.

		2025				2026
Profit (loss) for the year attributable to owners of the parent (millions of yen)			835,837				(423,941	)
Weighted average number of common shares outstanding, basic (shares)			4,671,383,489				3,997,276,887
Basic earnings (loss) per share attributable to owners of the parent (yen)			178.93				(106.06	)

[E] Subsequent Event

Subsequent event related to the reassessment of the automobile electrification strategy

The Company and its consolidated subsidiaries had historically entered into contracts with suppliers for the procurement of parts. During the year ended March 31, 2026, the Company decided to cancel the development and market launch of EV models that were planned for production in North America. For details of the decision, see [B] Segment Information. Accordingly, in the following fiscal year, the Company and its consolidated subsidiaries initiated an assessment to identify the impact of such decision on the suppliers. Additional payments to suppliers may arise in the future as a result of this assessment and related negotiations with them. However, as the assessment is ongoing, the Company and its consolidated subsidiaries cannot estimate the financial effects of such expenditures on the consolidated financial position or results of operations. As of March 31, 2026, a provision was not recognized as the response to the cancellation of model development requires discussions with suppliers and the amount of the obligation cannot be measured with sufficient reliability.

[F] Other

Loss related to airbag inflators

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

—15—

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[Translation]

May 14, 2026

To Whom It May Concern:

Company Name:		Honda Motor Co., Ltd.
Representative:		Toshihiro Mibe
		Director, President and Representative Executive Officer
		(Securities Code: 7267 Prime Market, TSE)
Contact Person:		Sumihiro Takahashi
		Head of Accounting and Finance Unit
		(TEL: +81-3-3423-1111)

Notice Concerning Differences between Forecasts and Actual Consolidated Financial Results for the Fiscal Year Ended March 31, 2026

Honda Motor Co., Ltd. (the “Company”) announces the differences between the forecasts announced on March 12, 2026, and the actual consolidated financial results for the fiscal year ended March 31, 2026, as follows. Consolidated financial results for the fiscal year ended March 31, 2026, were near the upper end of the forecast range.

Particulars

Differences between Forecasts and Actual Financial Results for the fiscal year ended March 31, 2026

		Sales revenue				Operating profit				Profit before income taxes				Profit for the year				Profit for the year attributable to owners of the parent				Basic earnings per share attributable to owners of the parent
		(Million Yen)				(Million Yen)				(Million Yen)				(Million Yen)				(Million Yen)				(Yen)
Forecast previously announced (A)			21,100,000				-570,000 ~ -270,000				-650,000 ~ -310,000				-630,000 ~ -360,000				-690,000 ~ -420,000				-172.62 ~ -105.07
Results of the fiscal year ended March 31, 2026 (B)			21,796,610				-414,346				-403,300				-353,023				-423,941				-106.06
Change (B-A)			696,610				155,654 ~ -144,346				246,700 ~ -93,300				276,977 ~  6,977				266,059 ~ -3,941
Percentage change (%)			3.3				—				—				—				—				—
(Reference) Results of the fiscal year ended March 31, 2025			21,688,767				1,213,486				1,317,640				903,034				835,837				178.93

Reason for Differences

Operating profit for the year ended March 31, 2026, was near the upper end of the forecast range, which was announced on March 12, 2026, despite EV-related losses, reflecting higher consolidated unit sales in the Automobile and Motorcycle businesses, as well as positive foreign currency effects.

In addition to the aforementioned effect, profit before income taxes, profit for the year, and profit for the year attributable to owners of the parent were affected by gains or losses on foreign exchange included in finance income and finance costs.

* Basic earnings per share attributable to owners of the parent is calculated based on profit for the year attributable to owners of the parent.

- End -

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[Translation]

May 14, 2026

To Whom It May Concern:

		Company Name:		Honda Motor Co., Ltd
		Representative:		Toshihiro Mibe
				Director, President and Representative Executive Officer
				(Securities Code: 7267 Prime Market, TSE)
		Contact Person:		Sumihiro Takahashi
				Head of Accounting and Finance Unit
				(TEL: +81-3-3423-1111)

Notice Concerning Changes in Executives and the Board of Directors Structure

Honda Motor Co., Ltd. (the “Company”) hereby announces that, although the Company disclosed the candidates for Directors to be proposed at the Ordinary General Meeting of Shareholders scheduled for June 2026 in the “Notice Concerning Changes in Executive Officers and Directors” dated February 10, 2026, the Nominating Committee held today has resolved to make changes to the list of candidates.

In addition, the Company’s Board of Directors today decided on a personnel change in Executive Officers effective as of June 1, 2026, and separate personnel changes effective as of the date of the Ordinary General Meeting of Shareholders of the Company scheduled to be held in June 2026, and also resolved to changes to the structure of the Board of Directors.

The personnel changes in Directors to become effective as of the date of the Ordinary General Meeting of Shareholders scheduled to be held in June 2026 shall be formally determined at that Ordinary General Meeting of Shareholders.

Particulars

1. Planned Personnel Changes in Directors

<As of the date of the Ordinary General Meeting of Shareholders to be held in June 2026>

Candidate for Director to be newly appointed

Name		Current Title		New Title
Mahito Shikama		Managing Officer, Honda R&D Co., Ltd.		Director, Executive Officer Honda Motor Co., Ltd.

Mahito Shikama is scheduled to be promoted from Managing Officer of Honda R&D Co., Ltd. to Executive Officer of Honda Motor Co., Ltd. effective June 1, 2026.

Accordingly, the list of candidates for new Director positions previously announced on February 10, 2026, has changed.

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2. Planned Personnel Changes in Executive Officers

<As of June 1, 2026>

Executive Officer to be newly appointed

Name		Current Title		New Title
Mahito Shikama		Managing Officer, Honda R&D Co., Ltd.		Executive Officer Honda Motor Co., Ltd.

<As of the date of the Ordinary General Meeting of Shareholders to be held in June 2026>

Executive Officer to retire

Name		Current Title		New Title
Manabu Ozawa		Managing Executive Officer		(retire)

3. Changes in the Board of Directors Structure

To ensure the steady execution of each business strategy and enable bold and transparent decision-making, the Company will reassess its corporate governance structure. Specifically, in addition to revising the composition of the Board of Directors to ensure a majority of the board members are outside directors, the Company will revise the composition of each committee and enhance the overall governance and operational framework of the Board.

<As of the date of the Ordinary General Meeting of Shareholders to be held in June 2026>

Change in the Composition of the Nomination and Compensation Committees and Change of the Chairperson of the Board of Directors

The Nomination and Compensation Committees will be composed entirely of outside directors to further enhance the transparency of the decision-making process. In addition, by appointing an outside director as the Chair of the Board of Directors, the Company aims to further improve the effectiveness of the Board.

<For Reference: Members of each Committee>

		Nominating Committee		Audit Committee		Compensation Committee
Chairperson		Fumiya Kokubu (Outside Director)		Yoichiro Ogawa (Outside Director)		Kazuhiro Higashi (Outside Director)
Members		Kunihiko Sakai (Outside Director)		Asako Suzuki (Director)		Fumiya Kokubu (Outside Director)
		Kazuhiro Higashi (Outside Director)		Jiro Morisawa (Director)		Yoichiro Ogawa (Outside Director)
		Mika Agatsuma (Outside Director)		Kunihiko Sakai (Outside Director)		Mika Agatsuma (Outside Director)
				Ryoko Nagata (Outside Director)

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<For Reference: Directors and Officers>

Compositions of Directors and Officers as of June 1, 2026 and as of the date of the Ordinary General Meeting of Shareholders to be held in June 2026

Name		As of June 1, 2026		As of the date of the Ordinary General Meeting of Shareholders
Toshihiro Mibe		Director, President and Representative Executive Officer (†)		Director, President and Representative Executive Officer
Noriya Kaihara		Director, Executive Vice President and Representative Executive Officer		Director, Executive Vice President and Representative Executive Officer
Eiji Fujimura		Director, Senior Managing Executive Officer		Senior Managing Executive Officer
Katsushi Inoue		Director		-
Asako Suzuki		Director		Director
Jiro Morisawa		Director		Director
Kunihiko Sakai		Director*		Director*
Fumiya Kokubu		Director*		Director*(†)
Yoichiro Ogawa		Director*		Director*
Kazuhiro Higashi		Director*		Director*
Ryoko Nagata		Director*		Director*
Mika Agatsuma		Director*		Director*
Masayuki Igarashi		Managing Executive Officer		Managing Executive Officer
Kensuke Oe		Managing Executive Officer		Managing Executive Officer
Manabu Ozawa		Managing Executive Officer		-
Hironao Ito		Managing Executive Officer		Managing Executive Officer
Ayumu Matsuo		Managing Executive Officer		Managing Executive Officer
Kazuhiro Takizawa		Managing Executive Officer		Managing Executive Officer
Minoru Kato		Managing Executive Officer		Managing Executive Officer
Takashi Onuma		Executive Officer		Executive Officer
Daiki Mihara		Executive Officer		Executive Officer
Toshihiro Akiwa		Executive Officer		Executive Officer
Ikuo Takeishi		Executive Officer		Executive Officer
Masao Kawaguchi		Executive Officer		Executive Officer
Takashi Imai		Executive Officer		Executive Officer
Mahito Shikama		Executive Officer		Director, Executive Officer

(†) Chairperson of the Board of Directors

* Outside Directors

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Resume of Candidate for Director to be newly appointed

As of May 14, 2025

Mahito SHIKAMA

Date of Birth: August 8, 1977 (48 years old)

Professional Experience:

April		2002		Joined Honda Motor Co., Ltd.
April		2022		General Manager, Advanced Safety and Intelligent Solution Development Division, Software Defined Mobility Development Supervisory Unit,Business Development Operations, Honda Motor Co., Ltd.
April		2023		Operating Executive Head, Software Defined Mobility Development Unit, BEV Development Center, Electrification Business Development Operations, Honda Motor Co., Ltd.
April		2026		Managing Officer, Chief Operating Officer of SDV R&D Center, Honda R&D Co., Ltd.,

Number of shares held : 1,500 shares

* Current responsibilities in boldface

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[Translation]

May 14, 2026

To Whom It May Concern:

Company Name:		Honda Motor Co., Ltd.
Representative:		Toshihiro Mibe
		Director, President and Representative Executive Officer
		(Securities Code: 7267 Prime Market, TSE)
Contact Person:		Sumihiro Takahashi
		Head of Accounting and Finance Unit
		(TEL: +81-3-3423-1111)

Announcement Regarding the Indefinite Suspension of its Plan to Establish Comprehensive Electric Vehicle Value Chain in Ontario, Canada

Honda Motors Co., Ltd. (“Honda”) today announced that Honda has decided to indefinitely suspend its plan to build a comprehensive EV value chain in Canada to strengthen its EV supply chain in North America. This plan was originally announced on April 25, 2024, and was announced to be postponed by approximately two years, due to the current slowdown in EV demand, on May 13, 2025.

- End -

FAQ

How did Honda Motor Co., Ltd. (HMC) perform financially in FY 2026?

Honda generated sales revenue of JPY 21,796.6 billion in FY 2026, up 0.5% from FY 2025. However, large EV-related charges led to an operating loss of JPY 414.3 billion and a loss attributable to owners of JPY 423.9 billion, reversing the prior year’s profit.

What were Honda’s main EV-related losses in FY 2026?

Honda recognized JPY 1,047,918 million of EV-related losses and expenses in cost of sales, plus additional charges in selling, general and administrative expenses, research and development, and equity-method losses. These stemmed from canceling or scaling back EV models and alliances in North America and revising EV plans in China.

What is Honda’s outlook for FY 2027 after the FY 2026 loss?

For the fiscal year ending March 31, 2027, Honda forecasts sales revenue of JPY 23,150.0 billion, operating profit of JPY 500.0 billion, profit attributable to owners of JPY 260.0 billion, and earnings per share of JPY 66.79, indicating an expected return to profitability.

How did Honda’s cash flow and cash position change in FY 2026?

Net cash provided by operating activities increased sharply to JPY 1,135.2 billion, compared with JPY 292.2 billion in FY 2025. Cash and cash equivalents at year-end rose to JPY 5,118.5 billion, reflecting stronger operating cash generation despite the accounting loss from EV-related charges.

Did Honda maintain its dividend despite the FY 2026 loss?

Yes. Honda paid an annual dividend of JPY 70.00 per share for FY 2026, slightly above the JPY 68.00 per share paid for FY 2025. The company also forecasts the same total dividend of JPY 70.00 per share for the fiscal year ending March 31, 2027.

What changes is Honda making to its Board and governance structure?

Honda plans for a Board where outside directors form a majority and will compose both the Nominating and Compensation Committees entirely of outside directors. An outside director will chair the Board, aiming to enhance transparency and effectiveness in overseeing strategy, including electrification initiatives.

What happened to Honda’s planned EV value chain project in Ontario, Canada?

Honda decided to indefinitely suspend its plan to build a comprehensive EV value chain in Ontario, Canada. The project, initially announced in April 2024 and later postponed by about two years, was shelved due to the current slowdown in EV demand and changing market conditions.