Honda 2015 Annual Report Download - page 7

Our Future Initiatives
Creating a new Honda under two themes:
As I assume the presidency, I decided to promote two themes
for creating a new Honda for the future. First is the further
advancement of the six-region global operation structure and
second is the continuous development of challenging prod-
ucts unique to Honda. In pursuit of these themes, I chose
“Team Honda” as our key phrase.
Honda’s strength is demonstrated when associates “at the
spot” share high goals and work as “one team” with all the
team members acting with strong aspirations.
During my career in Honda, I have amassed a broad range
of experiences “at the spot” in North America, Japan, Europe
and China through the development of products like the U.S.
Odyssey. Through these experiences I learned how important
it is for each and every associate to share a common goal and
work together as “one team.”
In order for such a team to produce good results, it is
important to create opportunities for each team member to
voice his or her own opinions and to have enough time for
in-depth discussions. In short, it is essential to create a bottom-
up environment where the team can take action on its own
initiative based on new discoveries or ideas.
My role as the president of the company, therefore, is to
foster an environment where associates can work with energy
and enthusiasm to create “Team Honda.” Moreover, what
Team Honda is striving to achieve is to have a strong bond
with our customers and all Honda stakeholders through
challenging products we create “at the spot.”
Fiscal Year Ended March 31, 2015
in Review
Looking at the economic environment surrounding Honda,
the United States experienced a gradual recovery in business
conditions, mainly due to an improving jobs market, along
with firm growth in housing investment and personal con-
sumption. In Europe, economic activity returned to a recovery
path, mainly due to gradual improvement in employment
conditions. In the Asian economies, India saw an economic
upturn, while China grew at a more gradual pace. Indonesia
experienced a slower pace of expansion, while Thailand’s
economy weakened. In Japan, economic performance was
sluggish, mainly due to weak personal consumption, despite
an improving employment picture.
In such an economic environment, Honda’s consolidated
sales revenue for the fiscal year ended March 31, 2015
amounted to ¥13,328.0 billion, an increase of 6.6% compared
to the previous fiscal year, due mainly to increased sales
revenue in motorcycle business operations and favorable
currency effects. Operating profit amounted to ¥670.6 billion,
a decrease of 18.6% compared to the previous fiscal year,
due mainly to increased SG&A expenses including product
warranty expenses, despite continuing cost reduction efforts
as well as positive currency translation effects. Profit before
income taxes amounted to ¥806.2 billion, a decrease of
13.7% compared to the previous fiscal year, and profit for the
year attributable to owners of the parent amounted to ¥509.4
billion, a decrease of 18.5%.
Honda Motor Co., Ltd. Annual Report 2015 06
3 To Our Shareholders
1 The Power of Dreams
2 Financial Highlights
4 Review of Operations
5 Corporate Governance
6 Financial Section
7
Investor Relations
Information
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