A general report of Honda Corp to CEO in 2003

During fiscal 2003, the economic situation in Japan remained pessimistic. Global environment was unstable. Under this situation, we should say Honda achieved a significant increase in sales during fiscal ended March 31, 2003. <Tab/>We couldn't avoid loss or unchanged sale in certain region due to the unpredictable global environment. Also, we have known that we remained unchanged sales domestic due to inactive Japan consumer spending. Learning from these situations surrounding Honda, we should …

…meet the expanding demand in China. Also, we should considering build a manufacturing base in Asia countries, which we could benefit from the cheaper labor and raw materials. Also, we can provide lose due to exchange rate due to RMB has a fix rate with U.S. Honda plays a leading role in Japan's recovery. Our preference directly influenced Japan's economy and consumers behaviors. Honda aims to achieve a long--term and stable growth during fiscal 2004.