[align=http://world.honda.com/investors/image/pic-2003anu.jpg]left[/align]This annual report contains the consolidated financial statements of Honda Motor Co., Ltd., and its subsidiaries, prepared for holders of Honda American and European shares. Please note that the financial statements appearing in the Notice of Convocation of the 79th Ordinary General Meeting of Stockholders, which was held in Tokyo, Japan, on June 24, 2003, were prepared on the basis of accounting principles generally accepted in Japan in accordance with the Japanese Commercial Code and related solely to Honda Motor Co., Ltd., and were not consolidated with those of its subsidiaries. On May 30, 2003, the original notice in the Japanese language was mailed to holders of Honda common stock in Japan and an English translation thereof was mailed to holders of Honda American shares.

CAUTION WITH RESPECT TO FORWARD-LOOKING STATEMENTS

This annual report includes "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended.

Although Honda believes that its plans, intentions and expectations reflected in such forward-looking statements are reasonable, it can give no assurance that such plans, intentions or expectations will be achieved. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by the cautionary statements set forth below.

Honda believes that the following important factors, among others, in some cases have affected, and in the future, could affect, its operations: the political, economic and social conditions in Japan, the United States and elsewhere, including the relevant governments' specific policies with respect to economic growth, inflation, taxation, currency conversion, imports and sources of supplies and the availability of credit, particularly to the extent that such current or future conditions and policies affect the automobile, motorcycle and power products industries and markets in Japan and the United States, and the demand, sales volume and sales prices for Honda's automobiles, motorcycles and power products; the effects of competition in the automobile, motorcycle and power products markets on the demand, sales volume and sales prices for Honda's automobiles, motorcycles and power products; Honda's ability to finance its working capital and capital expenditure requirements, including obtaining any required external debt or other financing; and the effects of economic stagnation or recession in Honda's principal markets and exchange rate fluctuations on the Company's results of operations.

Contents:

• Corporate Profile
• Financial Highlights
• To Our Shareholders
• Review of Operations
  Motorcycle Business
  Automobile Business
  Financial Services
  Others
• Business Progress in Asia
  Business Progress in Asia
  Motorcycle Business
  Automobile Business
• Environment and Safety
• Corporate Governance
• Honda's History
• Corporate Information
• Principal Manufacturing Facilities
• Board of Directors and Corporate Auditors
• Financial Section
  Financial Summary
  Financial Review
  Consolidated Balance Sheets
  Consolidated Statements of Income
  Consolidated Statements of Stockholders' Equity
  Consolidated Statements of Cash Flows
  Notes to Consolidated Financial Statements
  Independent Auditors' Report
• Selected Quarterly Financial Data (Unaudited and Not Reviewed)
• Net Sales and Operating Income by Business Segment
• Investor Information

Honda Motor Co., Ltd. Annual Report 2003
<font size="1">(You must have Adobe Acrobat or Reader installed. <a href="http://www.adobe.com/products/acrobat/readstep2.html">Get Reader</a>)</font><br />
<img src="http://www.adobe.com/images/get_adobe_reader.gif" border="0" /></a>