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About the Impact of Flooding in Thailand on Honda Operations

Following is the most current information regarding the situation of Honda Automobile (Thailand) Co., Ltd. (HATC), the Honda automobile production subsidiary in Thailand (headquarter in the Rojana Industrial Park, Ayutthaya), which experienced damage from the flooding, as well as other Honda group companies located in neighboring Asian countries.

1. Situation of automobile production plant (HATC) in Thailand
   HATC, which has been suspending production since October 4, 2011, is making progress in restoring plant facilities and manufacturing equipment since completing the drainage of the flood water and cleaning of the plant facilities which began at the end of November 2011. HATC is expecting to resume production by the end of March 2012. 
2. Situation of production operations in neighboring Asian countries
   Honda's production operations in the neighboring Asian counties, which suspended or made production adjustments due to the disruption in parts supply from Thailand, began resuming production. The production is expected to be normalized at all production operations by April.
3. Flood control measures for the future
   Honda is planning to take some additional flood control measures including conducting stationary measurement of water levels and working together with Rojana Industrial Park to build water protection walls around the plant. Honda will also make requests to Thai governments and the industrial park as needed to prevent the risk of flooding in the future. In addition, Honda will address the issues related to its supply chain, which became evident in the face of this disaster, and work together with suppliers to strive to avoid such risks in the future.

For an overview of the impact of the flooding in Thailand on Honda's financial results, please refer to the press release titled "Consolidated Financial Summary for the Fiscal 3rd Quarter ended December 31, 2011."  

About Honda Automobile (Thailand) Co., Ltd.Location: Ayutthaya province, Thailand

Representative: Hiroshi Kobayashi/President

Capital Investment: 5.46 billion baht

Capitalization Ratio: 75.94% Honda Motor Co., Ltd.

13.05% Asian Honda Motor Co., Ltd.

11.01% Others

Business Areas: Production and sales of automobiles

Established: December 2000

Employment: Approximately 4,000 associates

Production Capacity: 240,000 units per year