Message from the President and CEO Striving to be a company society wants to exist by continuing to create technologies and products with new value please customers, we will endeavor to provide even better products by redoubling our quality assurance activities. Bringing all Hand’s resources to bear in a global effort to strengthen our business structure Striving to be a leader in environment and safety We’re finally beginning to see subtle signs of a recovery in the global economic slowdown that began with the financial crisis in the United States in 2008.

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Although a lull recovery in our businesses in Japan, Europe, and the United States will take more time, Honda delivered products to more than 24 million customers worldwide through its motorcycle, automobile, and power product businesses in PAYOFF. I’m confident that these results are the product of a concerted effort on the part of our associates, suppliers, dealerships, and other partners to supply products and services that will please customers while respecting local culture and customs in accordance with our policy of “manufacturing close to the customer,” a philosophy Honda has embraced nice its founding.

Nowhere is this success more evident than in China, where we sold a record 580,000 automobiles during 2009, and in Thailand, where we are manufacturing the PC scooter, a strategic global model, and expanding our business from Asia to the world. Nonetheless, the business environment in which we operate continues to be a challenging one, and I recognize that it is essential for Honda Group companies worldwide to come together to strengthen our business structure through the targeted application of limited management resources to key segments of our operations.

We also face challenges in fulfilling our responsibilities as a manufacturer of mobility solutions. Consistent with our historic commitment to manufacturing high-quality products that will CARS Report 2010 During 2010, we launched the CRY-Z sport-type hybrid, which combines environmental friendliness with driving pleasure, as well as the Nope generator, which runs on ordinary household butane gas canisters. We’re planning to including a hybrid model of the Fit hatchback and the EVE-neo electric motorcycle.

We also plan to contribute to the resolution of environmental issues from the standpoint f renewable energy utilization by promoting use of residential generation units and thin-film solar panels, which use less energy and generate lower CA emissions during the manufacturing process than conventional silicon-based solar panels. Additionally, the Gawk Plant, which began operations in 2009, is striving to implement environment- and people-friendly operations, particularly through initiatives to reduce energy consumption.

The facility has been designed with future generations in mind, for example by minimizing generation f waste products during the plant’s future demolition, using recyclable building materials, and making use of construction techniques that minimize the structure’s environmental impact. How do we make products environmentally friendly? How do we make them useful and convenient? How do we make them fun to use? Honda is committed to bringing its full resources to bear on the effort to realize a low-carbon society by developing technologies for reducing CA while sharing Joy and excitement with its many customers and other stakeholders. Honda has led other companies in developing proprietary cosmologies for dealing with safety issues, in keeping with its Safety for Everyone philosophy. Honda strives to pursue safety initiatives by taking advantage of the uniqueness of these technologies. We have sought to live up to the principles of this philosophy by working to communicate the freedom and Joy of mobility to all the people of the world through our motorcycle, automobile, and power product businesses as well as through projects such as ASIMOV, Handset, and new mobility technologies such as Walking Assist.

Creating products and technologies that offer new value and exceed the expectations of our customers and stakeholders worldwide, we are striving to be a company that society wants to exist. Honda associates are uniting worldwide, taking on the challenge of fulfilling our responsibility to society. Striving to realize a sustainable society through a Group-wide effort to provide new value The Honda Philosophy, which includes fundamental beliefs in terms of respect for the individual and the Three Joys, forms the basis for all corporate activities and serves as the standard for conduct and decision-making by Takeout Tit President and CEO 6

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