Table of Contents

No.1-7628

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF MAY 2022

COMMISSION FILE NUMBER: 1-07628

HONDA GIKEN KOGYO KABUSHIKI KAISHA

(Name of registrant)

HONDA MOTOR CO., LTD.

(Translation of registrant’s name into English)

1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo 107-8556, Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  ☒    Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 


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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

HONDA GIKEN KOGYO KABUSHIKI KAISHA (HONDA MOTOR CO., LTD.)

/s/ Masaharu Hirose

Masaharu Hirose
General Manager
Finance Division
Honda Motor Co., Ltd.

Date: May 13, 2022


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May 13, 2022

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL FOURTH QUARTER AND

THE FISCAL YEAR ENDED MARCH 31, 2022

Tokyo, May 13, 2022 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2022.

Fiscal Year Results

Despite shifting to a recovery trend, the economic environment surrounding the Company, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method in the fiscal year ended March 31, 2022, continued to be difficult due to the impact of semiconductor supply shortage, and increases in raw material costs, among other factors.

Regarding the spread coronavirus disease 2019 (COVID-19), resulting from travel restriction measures by government, Honda’s production bases in Japan and overseas were also affected by suspended or reduced production mainly due to restrictions on employees’ commute to the workplaces and delays in the supply of parts within the supply chain. Some dealers in Japan and overseas were obliged to suspend business, shorten business hours, or reduce services such as inspections and repairs. As of the date of this report, Honda has been largely resuming its business activities and there is no significant impact on its businesses in major countries or regions.

Honda’s consolidated sales revenue for the fiscal year ended March 31, 2022 increased by 10.5%, to JPY 14,552.6 billion from the fiscal year ended March 31, 2021, due mainly to increased sales revenue in Motorcycle business and Financial services business operations as well as positive foreign currency translation effects. Operating profit increased by 32.0%, to JPY 871.2 billion from the previous fiscal year, due mainly to an increase in profit attributable to sales impacts as well as positive foreign currency effects, which was partially offset by a decrease in profit attributable to price and cost impacts. Profit before income taxes increased by 17.1%, to JPY 1,070.1 billion from the previous fiscal year. Profit for the year attributable to owners of the parent increased by 7.6%, to JPY 707.0 billion from the previous fiscal year.

Earnings per share attributable to owners of the parent for the year amounted to JPY 411.09, an increase of JPY 30.34 from the previous fiscal year. One Honda American Depository Share represents one common share.

Fourth Quarter Results

Consolidated sales revenue for the three months ended March 31, 2022 increased by 7.0%, to JPY 3,875.6 billion from the same period last year, due mainly to positive foreign currency translation effects, which was partially offset by decreased sales revenue in Automobile business operations. Operating profit decreased by 6.4%, to JPY 199.5 billion from the same period last year, due mainly to a decrease in profit attributable to price and cost impacts, which was partially offset by positive foreign currency effects. Profit before income taxes decreased by 11.9%, to JPY 224.9 billion from the same period last year. Profit for the period attributable to owners of the parent decreased by 41.5%, to JPY 124.8 billion from the same period last year.

Earnings per share attributable to owners of the parent for the quarter amounted to JPY 73.02, a decrease of JPY 50.53 from the corresponding period last year.

 

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Consolidated Statements of Financial Position for the Fiscal Year Ended March 31, 2022

Total assets increased by JPY 2,052.1 billion, to JPY 23,973.1 billion from March 31, 2021 due mainly to increased cash and cash equivalents as well as positive foreign currency translation effects, which was partially offset by a decrease in receivables from financial service. Total liabilities increased by JPY 652.4 billion, to JPY 13,200.6 billion from March 31, 2021 due mainly to positive foreign currency translation effects, which was partially offset by a decrease in financing liabilities as well as provisions. Total equity increased by JPY 1,399.7 billion, to JPY 10,772.5 billion from March 31, 2021 due mainly to increased retained earnings attributable to profit for the year as well as positive foreign currency translation effects.

Consolidated Statements of Cash Flows for the Fiscal Year Ended March 31, 2022

Consolidated cash and cash equivalents on March 31, 2022 increased by JPY 916.9 billion from March 31, 2021, to JPY 3,674.9 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the previous fiscal year, are as follows:

Net cash provided by operating activities amounted to JPY 1,679.6 billion of cash inflows. Cash inflows from operating activities increased by JPY 607.2 billion compared with the previous fiscal year, due mainly to increased cash received from customers, which was partially offset by increased payments for parts and raw materials.

Net cash used in investing activities amounted to JPY 376.0 billion of cash outflows. Cash outflows from investing activities decreased by JPY 420.8 billion compared with the previous fiscal year, due mainly to decreased payments for acquisitions of investments accounted for using the equity method as well as increased proceeds from sales and redemptions of other financial assets.

Net cash used in financing activities amounted to JPY 615.7 billion of cash outflows. Cash outflows from financing activities increased by JPY 331.7 billion compared with the previous fiscal year, due mainly to a decrease in proceeds from financing liabilities and purchases of treasury stock.

 

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Forecasts for the Fiscal Year Ending March 31, 2023

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2023, Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2023

 

     Yen (billions)      Changes from FY 2022  

Sales revenue

     16,250.0        + 11.7

Operating profit

     810.0        - 7.0

Profit before income taxes

     1,035.0        - 3.3

Profit for the year

     765.0        + 0.6

Profit for the year attributable to owners of the parent

     710.0        + 0.4
     Yen         

Earnings per share attributable to owners of the parent

     

Basic and diluted

     415.06     

Note: The forecasts are based on the assumption that the average exchange rates for the Japanese yen to the U.S. dollar will be JPY 120 for the full year ending March 31, 2023.

The reasons for the increases or decreases in the forecasts of the operating profit, and profit before income taxes for the fiscal year ending March 31, 2023 from the previous year are as follows.

 

     Yen (billions)  

Sales impacts

     + 169.8  

Price and cost impacts

     - 86.0  

Expenses

     - 148.0  

R&D expenses

     - 83.0  

Currency effect

     + 86.0  
  

 

 

 

Operating profit compared with fiscal year ended March 31, 2022

     - 61.2  
  

 

 

 

Profit of equity method

     + 27.4  

Other

     - 1.4  
  

 

 

 

Profit before income taxes compared with fiscal year ended March 31, 2022

     - 35.1  
  

 

 

 

 

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Dividend per Share of Common Stock

The interim dividend for the fiscal year ended March 31, 2022, was JPY 55 per share of common stock. The year-end dividend for the fiscal year ended March 31, 2022, is JPY 65 per share of common stock. The total annual dividend per share of common stock for the fiscal year ended March 31, 2022, is JPY 120 per share. The Company expects to distribute an interim dividend of JPY 60 per share and a year-end dividend of JPY 60 per share for the fiscal year ending March 31, 2023. As a result, the total annual dividend for the fiscal year ending March 31, 2023 is expected to be JPY 120 per share.

This announcement contains “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that the actual results of the Company could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in the principal markets of the Company, its consolidated subsidiaries and its affiliates accounted for by the equity-method, and fluctuation of foreign exchange rates, as well as other factors detailed from time to time. The various factors for increases and decreases in profit have been classified in accordance with a method that Honda considers reasonable.

Basic Rationale for Selection of Accounting Standards

The Company adopted IFRS for the Company’s consolidated financial statements from the year ended March 31, 2015 which have been included in the annual securities report (to be submitted to the Financial Services Agency of Japan) and Form 20-F (to be submitted to the U.S. Securities and Exchange Commission), aiming at improving comparability of financial information across international capital markets as well as standardization of financial information and enhancing efficiency of financial reporting of the Company and its consolidated subsidiaries.

 

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[1] Consolidated Statements of Financial Position

March 31, 2021 and 2022

 

     Yen (millions)  
     Mar. 31, 2021     Mar. 31, 2022  

Assets

    

Current assets:

    

Cash and cash equivalents

     2,758,020       3,674,931  

Trade receivables

     801,814       896,768  

Receivables from financial services

     1,794,654       1,694,113  

Other financial assets

     295,307       217,743  

Inventories

     1,545,600       1,918,548  

Other current assets

     383,696       439,322  
  

 

 

   

 

 

 

Total current assets

     7,579,091       8,841,425  
  

 

 

   

 

 

 

Non-current assets:

    

Investments accounted for using the equity method

     891,002       967,404  

Receivables from financial services

     3,619,896       3,740,383  

Other financial assets

     628,533       819,654  

Equipment on operating leases

     4,919,916       5,159,129  

Property, plant and equipment

     3,021,514       3,079,407  

Intangible assets

     818,763       849,507  

Deferred tax assets

     99,552       91,592  

Other non-current assets

     342,763       424,652  
  

 

 

   

 

 

 

Total non-current assets

     14,341,939       15,131,728  
  

 

 

   

 

 

 

Total assets

     21,921,030       23,973,153  
  

 

 

   

 

 

 

Liabilities and Equity

    

Current liabilities:

    

Trade payables

     1,088,061       1,236,233  

Financing liabilities

     3,005,624       3,118,304  

Accrued expenses

     415,106       375,601  

Other financial liabilities

     182,145                              236,900  

Income taxes payable

                              47,793       96,116  

Provisions

     362,151       268,388  

Other current liabilities

     614,577       672,857  
  

 

 

   

 

 

 

Total current liabilities

     5,715,457       6,004,399  
  

 

 

   

 

 

 

Non-current liabilities:

    

Financing liabilities

     4,715,361       4,984,252  

Other financial liabilities

     280,809       282,083  

Retirement benefit liabilities

     358,532       282,054  

Provisions

     278,890       253,625  

Deferred tax liabilities

     842,001       990,754  

Other non-current liabilities

     357,141       403,440  
  

 

 

   

 

 

 

Total non-current liabilities

     6,832,734       7,196,208  
  

 

 

   

 

 

 

Total liabilities

     12,548,191       13,200,607  
  

 

 

   

 

 

 

Equity:

    

Common stock

     86,067       86,067  

Capital surplus

     172,049       185,495  

Treasury stock

     (273,786     (328,309

Retained earnings

     8,901,266       9,539,133  

Other components of equity

     196,710       990,438  
  

 

 

   

 

 

 

Equity attributable to owners of the parent

     9,082,306       10,472,824  

Non-controlling interests

     290,533       299,722  
  

 

 

   

 

 

 

Total equity

     9,372,839       10,772,546  
  

 

 

   

 

 

 

Total liabilities and equity

     21,921,030       23,973,153  
  

 

 

   

 

 

 

 

—5—


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[2] Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

Consolidated Statements of Income

For the years ended March 31, 2021 and 2022

 

     Yen (millions)  
     Year ended
Mar. 31, 2021
    Year ended
Mar. 31, 2022
 

Sales revenue

     13,170,519       14,552,696  

Operating costs and expenses:

    

Cost of sales

     (10,439,689     (11,567,923

Selling, general and administrative

     (1,331,728     (1,326,485

Research and development

     (738,894     (787,056
  

 

 

   

 

 

 

Total operating costs and expenses

     (12,510,311     (13,681,464
  

 

 

   

 

 

 

Operating profit

     660,208       871,232  
  

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

     272,734       202,512  

Finance income and finance costs:

    

Interest income

                              19,805                                25,627  

Interest expense

     (13,877     (16,867

Other, net

     (24,817     (12,314
  

 

 

   

 

 

 

Total finance income and finance costs

     (18,889     (3,554
  

 

 

   

 

 

 

Profit before income taxes

     914,053       1,070,190  

Income tax expense

     (218,609     (309,489
  

 

 

   

 

 

 

Profit for the year

     695,444       760,701  
  

 

 

   

 

 

 

Profit for the year attributable to:

    

Owners of the parent

     657,425       707,067  

Non-controlling interests

     38,019       53,634  
     Yen  

Earnings per share attributable to owners of the parent

    

Basic and diluted

     380.75       411.09  

 

—6—


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Consolidated Statements of Comprehensive Income

For the years ended March 31, 2021 and 2022

 

     Yen (millions)  
     Year ended
Mar. 31, 2021
    Year ended
Mar. 31, 2022
 

Profit for the year

     695,444       760,701  

Other comprehensive income, net of tax:

    

Items that will not be reclassified to profit or loss

    

Remeasurements of defined benefit plans

     238,262       117,042  

Net changes in revaluation of financial assets measured at fair value through other comprehensive income

     67,603       58,635  

Share of other comprehensive income of investments accounted for using the equity method

     4,910       1,786  

Items that may be reclassified subsequently to profit or loss

    

Net changes in revaluation of financial assets measured at fair value through other comprehensive income

     (43     (682

Exchange differences on translating foreign operations

                            239,097                              680,724  

Share of other comprehensive income of investments accounted for using the equity method

     27,350       77,447  
  

 

 

   

 

 

 

Total other comprehensive income, net of tax

     577,179       934,952  
  

 

 

   

 

 

 

Comprehensive income for the year

     1,272,623       1,695,653  
  

 

 

   

 

 

 

Comprehensive income for the year attributable to:

    

Owners of the parent

     1,214,757       1,619,997  

Non-controlling interests

     57,866       75,656  

 

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Consolidated Statements of Income

For the three months ended March 31, 2021 and 2022

 

     Yen (millions)  
     Three months ended
Mar. 31, 2021
    Three months ended
Mar. 31, 2022
 

Sales revenue

     3,623,806       3,875,683  

Operating costs and expenses:

    

Cost of sales

     (2,845,168     (3,081,173

Selling, general and administrative

     (327,517     (371,238

Research and development

     (237,913     (223,685
  

 

 

   

 

 

 

Total operating costs and expenses

     (3,410,598     (3,676,096
  

 

 

   

 

 

 

Operating profit

     213,208       199,587  
  

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

     68,164                               45,478  

Finance income and finance costs:

    

Interest income

                                6,233       6,890  

Interest expense

     (5,314     (7,198

Other, net

     (26,945     (19,805
  

 

 

   

 

 

 

Total finance income and finance costs

     (26,026     (20,113
  

 

 

   

 

 

 

Profit before income taxes

     255,346       224,952  

Income tax expense

     (31,800     (80,454
  

 

 

   

 

 

 

Profit for the period

     223,546       144,498  
  

 

 

   

 

 

 

Profit for the period attributable to:

    

Owners of the parent

     213,323       124,898  

Non-controlling interests

     10,223       19,600  
     Yen  

Earnings per share attributable to owners of the parent

    

Basic and diluted

     123.55       73.02  

 

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Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2021 and 2022

 

     Yen (millions)  
     Three months ended
Mar. 31, 2021
    Three months ended
Mar. 31, 2022
 

Profit for the period

     223,546       144,498  

Other comprehensive income, net of tax:

    

Items that will not be reclassified to profit or loss

    

Remeasurements of defined benefit plans

     238,262       117,042  

Net changes in revaluation of financial assets measured at fair value through other comprehensive income

     3,603       (20,125

Share of other comprehensive income of investments accounted for using the equity method

                                4,297       1,673  

Items that may be reclassified subsequently to profit or loss

    

Net changes in revaluation of financial assets measured at fair value through other comprehensive income

     (170     (585

Exchange differences on translating foreign operations

     353,105       461,572  

Share of other comprehensive income of investments accounted for using the equity method

     21,578                               34,062  
  

 

 

   

 

 

 

Total other comprehensive income, net of tax

     620,675       593,639  
  

 

 

   

 

 

 

Comprehensive income for the period

     844,221       738,137  
  

 

 

   

 

 

 

Comprehensive income for the period attributable to:

    

Owners of the parent

     820,555       701,887  

Non-controlling interests

     23,666       36,250  

 

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[3] Consolidated Statements of Changes in Equity

For the years ended March 31, 2021 and 2022

 

    Yen (millions)  
    Equity attributable to owners of the parent    

Non-controlling
interests
   

Total
equity
 
    Common
stock
    Capital
surplus
    Treasury
stock
    Retained
earnings
    Other
components
of equity
   
Total
 

Balance as of April 1, 2020

    86,067       171,823       (273,940     8,142,948       (114,639     8,012,259       273,764       8,286,023  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income for the year

               

Profit for the year

          657,425         657,425       38,019       695,444  

Other comprehensive income, net of tax

            557,332       557,332       19,847       577,179  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the year

          657,425       557,332       1,214,757       57,866       1,272,623  

Reclassification to retained earnings

          245,983       (245,983     —           —    

Transactions with owners and other

               

Dividends paid

          (145,090       (145,090     (43,348     (188,438

Purchases of treasury stock

        (6         (6       (6

Disposal of treasury stock

        160           160         160  

Share-based payment transactions

      226             226         226  

Equity transactions and others

                2,251       2,251  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

      226       154       (145,090       (144,710     (41,097     (185,807
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of March 31, 2021

    86,067       172,049       (273,786     8,901,266       196,710       9,082,306       290,533       9,372,839  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income for the year

               

Profit for the year

          707,067         707,067       53,634       760,701  

Other comprehensive income, net of tax

            912,930       912,930       22,022       934,952  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the year

          707,067       912,930       1,619,997       75,656       1,695,653  

Reclassification to retained earnings

          119,202       (119,202     —           —    

Transactions with owners and other

               

Dividends paid

          (188,402       (188,402     (45,131     (233,533

Purchases of treasury stock

        (62,758         (62,758       (62,758

Disposal of treasury stock

        578           578         578  

Share-based payment transactions

      (233           (233       (233

Equity transactions and others

      13,679       7,657           21,336       (21,336     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

      13,446       (54,523     (188,402       (229,479     (66,467     (295,946
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of March 31, 2022

    86,067       185,495       (328,309     9,539,133       990,438       10,472,824       299,722       10,772,546  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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Table of Contents

[4] Consolidated Statements of Cash Flows

For the years ended March 31, 2021 and 2022

 

     Yen (millions)  
     Year ended
Mar. 31, 2021
    Year ended
Mar. 31, 2022
 

Cash flows from operating activities:

    

Profit before income taxes

     914,053       1,070,190  

Depreciation, amortization and impairment losses excluding equipment on operating leases

     624,239       611,063  

Share of profit of investments accounted for using the equity method

     (272,734     (202,512

Finance income and finance costs, net

     22,630       (56,352

Interest income and interest costs from financial services, net

     (137,178     (155,872

Changes in assets and liabilities

    

Trade receivables

     (133,788     (24,037

Inventories

     68,281       (208,895

Trade payables

     101,301       50,122  

Accrued expenses

     (40,927     (68,811

Provisions and retirement benefit liabilities

     106,829       (156,079

Receivables from financial services

     (59,934     509,741  

Equipment on operating leases

     (161,579     171,600  

Other assets and liabilities

     (72,473     28,981  

Other, net

     5,190       (19,782

Dividends received

     191,112       193,555  

Interest received

     236,729       237,724  

Interest paid

     (113,100     (97,884

Income taxes paid, net of refunds

     (206,272     (203,130
  

 

 

   

 

 

 

Net cash provided by operating activities

     1,072,379       1,679,622  

Cash flows from investing activities:

    

Payments for additions to property, plant and equipment

     (318,410     (268,143

Payments for additions to and internally developed intangible assets

     (232,727     (181,083

Proceeds from sales of property, plant and equipment and intangible assets

     6,770       27,108  

Payments for acquisitions of subsidiaries, net of cash and cash equivalents acquired

     2,230       —    

Payments for acquisitions of investments accounted for using the equity method

     (110,747     —    

Proceeds from sales of investments accounted for using the equity method

     12,570       —    

Payments for acquisitions of other financial assets

     (433,375     (488,631

Proceeds from sales and redemptions of other financial assets

                            276,808                              534,693  
  

 

 

   

 

 

 

Net cash used in investing activities

     (796,881     (376,056

Cash flows from financing activities:

    

Proceeds from short-term financing liabilities

     9,115,347       7,487,724  

Repayments of short-term financing liabilities

     (9,294,859     (7,960,144

Proceeds from long-term financing liabilities

     1,948,835       2,002,823  

Repayments of long-term financing liabilities

     (1,798,429     (1,761,561

Dividends paid to owners of the parent

     (145,090     (188,402

Dividends paid to non-controlling interests

     (41,755     (53,813

Purchases and sales of treasury stock, net

     154       (62,180

Repayments of lease liabilities

     (67,628     (80,165

Other, net

     (555     —    
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (283,980     (615,718

Effect of exchange rate changes on cash and cash equivalents

     94,149       229,063  
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     85,667       916,911  

Cash and cash equivalents at beginning of year

     2,672,353       2,758,020  
  

 

 

   

 

 

 

Cash and cash equivalents at end of year

     2,758,020       3,674,931  
  

 

 

   

 

 

 

 

—11—


Table of Contents

[5] Assumptions for Going Concern

None

 

—12—


Table of Contents

[6] Notes to Consolidated Financial Statements

[A] Segment Information

Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Life creation and other businesses, which are based on Honda’s organizational structure and characteristics of products and services. Operating segments are defined as the components of Honda for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The accounting policies used for these reportable segments are consistent with the accounting policies used in the Company’s consolidated financial statements.

Principal products and services, and functions of each segment are as follows:

 

Segment

 

Principal products and services

 

Functions

Motorcycle Business

  Motorcycles, all-terrain vehicles (ATVs),
side-by-sides (SxS) and relevant parts
 

Research and development

Manufacturing

Sales and related services

Automobile Business

  Automobiles and relevant parts  

Research and development

Manufacturing

Sales and related services

Financial Services Business

  Financial services  

Retail loan and lease related to Honda products

Others

Life Creation and Other Businesses*

  Power products and relevant parts, and others  

Research and development

Manufacturing
Sales and related services

Others

Explanatory note:

 

*

Life creation business has been renamed Power product business as a result of organizational changes effective April 1, 2022.

Segment information based on products and services

As of and for the year ended March 31, 2021

 

     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Life Creation
and Other
Businesses
    Segment
Total
     Reconciling
Items
    Consolidated  

Sales revenue:

                  

External customers

     1,787,283        8,567,205        2,494,294        321,737       13,170,519        —         13,170,519  

Intersegment

     —          212,144        12,494        20,107       244,745        (244,745     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     1,787,283        8,779,349        2,506,788        341,844       13,415,264        (244,745     13,170,519  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

     224,608        90,255        356,980        (11,635     660,208        —         660,208  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment assets

     1,555,057        8,643,109        10,832,645        374,169       21,404,980           516,050       21,921,030  

Depreciation and amortization

     68,258        515,241        825,975        15,644       1,425,118        —         1,425,118  

Capital expenditures

     48,800        500,431        2,006,264        11,609       2,567,104        —         2,567,104  

As of and for the year ended March 31, 2022

 

     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Life Creation
and Other
Businesses
    Segment
Total
     Reconciling
Items
    Consolidated  

Sales revenue:

                  

External customers

     2,185,253        9,147,498        2,820,667        399,278       14,552,696        —         14,552,696  

Intersegment

     —          213,095        2,656        22,480       238,231        (238,231     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     2,185,253        9,360,593        2,823,323        421,758       14,790,927        (238,231     14,552,696  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

     311,492        236,207        333,032        (9,499     871,232        —         871,232  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment assets

     1,448,926        9,563,553        11,318,756        475,124       22,806,359        1,166,794       23,973,153  

Depreciation and amortization

     65,423        510,755        883,712        17,018       1,476,908        —         1,476,908  

Capital expenditures

     49,203        410,169        2,028,700        15,748       2,503,820        —         2,503,820  

 

—13—


Table of Contents

For the three months ended March 31, 2021

 

     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Life Creation
and Other
Businesses
    Segment
Total
     Reconciling
Items
    Consolidated  

Sales revenue:

                                       

External customers

        529,110        2,359,477             640,653          94,566       3,623,806        —           3,623,806  

Intersegment

     —          58,935        2,974        5,837       67,746        (67,746     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     529,110        2,418,412        643,627        100,403         3,691,552        (67,746     3,623,806  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

     72,229        37,631        106,399        (3,051     213,208        —         213,208  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

For the three months ended March 31, 2022

 

     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Life Creation
and Other
Businesses
    Segment
Total
     Reconciling
Items
    Consolidated  

Sales revenue:

                                       

External customers

        583,157        2,478,841             706,332        107,353       3,875,683        —         3,875,683  

Intersegment

     —          58,075        532        5,439       64,046        (64,046     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     583,157        2,536,916        706,864        112,792         3,939,729        (64,046       3,875,683  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

     79,097        47,660        74,883        (2,053     199,587        —         199,587  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Explanatory notes:

 

1.

Intersegment sales revenues are generally made at values that approximate arm’s-length prices.

2.

Reconciling items include elimination of intersegment transactions and balances as well as unallocated corporate assets. Unallocated corporate assets, included in reconciling items as of March 31, 2021 and 2022 amounted to JPY 696,327 million and JPY 1,319,995 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

In addition to the disclosure required by IFRS, Honda provides the following supplemental information for the financial statements users:

Supplemental geographical information based on the location of the Company and its subsidiaries

As of and for the year ended March 31, 2021

 

     Yen (millions)  
     Japan     North
America
     Europe      Asia      Other
Regions
    Total      Reconciling
Items
    Consolidated  

Sales revenue:

                    

External customers

     2,190,797       7,081,264        503,549        2,966,814        428,095       13,170,519        —         13,170,519  

Inter-geographic areas

     1,677,038       399,573        178,300        491,965        6,400       2,753,276        (2,753,276     —    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     3,867,835       7,480,837        681,849        3,458,779        434,495       15,923,795        (2,753,276     13,170,519  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Operating profit (loss)

     (75,935     455,888        27,460        251,886        (5,034     654,265        5,943       660,208  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Assets

     5,295,475       12,209,455        677,066        3,267,417        482,918       21,932,331        (11,301     21,921,030  

Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets

     3,050,270       5,039,085        60,790        666,795        117,528       8,934,468        —         8,934,468  

As of and for the year ended March 31, 2022

 

     Yen (millions)  
     Japan     North
America
     Europe      Asia      Other
Regions
    Total      Reconciling
Items
    Consolidated  

Sales revenue:

                    

External customers

     2,354,532        7,618,932        602,695        3,393,323        583,214        14,552,696        —         14,552,696  

Inter-geographic areas

     2,004,754       471,255        98,516        662,124        9,925       3,246,574        (3,246,574     —    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     4,359,286       8,090,187        701,211        4,055,447        593,139       17,799,270        (3,246,574     14,552,696  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Operating profit (loss)

     6,411       501,073        26,681        339,129        22,899       896,193        (24,961     871,232  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Assets

     5,318,033       12,983,779        597,473        3,803,877        619,998       23,323,160        649,993       23,973,153  

Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets

     3,036,832       5,334,121        49,129        706,562        169,447       9,296,091        —         9,296,091  

 

—14—


Table of Contents

For the three months ended March 31, 2021

 

     Yen (millions)  
     Japan     North
America
     Europe      Asia      Other
Regions
    Total      Reconciling
Items
    Consolidated  

Sales revenue:

                    

External customers

     630,953       1,880,942        152,586        842,041        117,284       3,623,806        —         3,623,806  

Inter-geographic areas

     487,173       128,979        56,589        162,327        1,891       836,959           (836,959     —    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     1,118,126         2,009,921        209,175        1,004,368        119,175         4,460,765        (836,959       3,623,806  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Operating profit (loss)

     (44,549     186,652        9,108        81,817        (5,455     227,573        (14,365     213,208  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

For the three months ended March 31, 2022

 

     Yen (millions)  
     Japan     North
America
     Europe      Asia      Other
Regions
     Total      Reconciling
Items
    Consolidated  

Sales revenue:

                     

External customers

     640,540       1,937,777        162,440        992,604        142,322          3,875,683        —         3,875,683  

Inter-geographic areas

     498,051       130,083        9,449        170,726        2,446        810,755           (810,755     —    
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     1,138,591         2,067,860        171,889        1,163,330        144,768        4,686,438        (810,755       3,875,683  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating profit (loss)

     (20,252     86,998        8,917        106,879        4,257        186,799        12,788       199,587  
  

 

 

   

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Explanatory notes:

 

1.

Major countries in each geographic area:

 

North America

   United States, Canada, Mexico

Europe

   United Kingdom, Germany, Belgium, Italy, France

Asia

   Thailand, China, India, Vietnam, Malaysia

Other Regions

   Brazil, Australia

 

2.

Sales revenues between geographic areas are generally made at values that approximate arm’s-length prices.

 

3.

Reconciling items include elimination of inter-geographic transactions and balances as well as unallocated corporate assets. Unallocated corporate assets, included in reconciling items as of March 31, 2021 and 2022 amounted to JPY 696,327 million and JPY 1,319,995 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

[B] Information about per common share

Equity per share attributable to owners of the parent as of March 31, 2021 and 2022 are calculated based on the following information.

 

     2021      2022  

Equity attributable to owners of the parent (millions of yen)

     9,082,306        10,472,824  

The number of shares outstanding at the end of the year (excluding treasury stock) (shares)

     1,726,655,268        1,710,600,356  

Equity per share attributable to owners of the parent (yen)

     5,260.06        6,122.31  

Earnings per share attributable to owners of the parent for the years ended March 31, 2021 and 2022 are calculated based on the following information. There were no significant potentially dilutive common shares outstanding for the years ended March 31, 2021 and 2022.

 

     2021      2022  

Profit for the year attributable to owners of the parent (millions of yen)

     657,425        707,067  

Weighted average number of common shares outstanding, basic (shares)

     1,726,638,088        1,719,961,835  

Basic earnings per share attributable to owners of the parent (yen)

     380.75        411.09  

[C] Significant Subsequent Event

None

 

—15—


Table of Contents

[D] Other

Loss related to airbag inflators

Honda has been conducting market-based measures in relation to airbag inflators. Honda recognizes a provision for specific warranty costs when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. There is a possibility that Honda will need to recognize additional provisions when new evidence related to the product recalls arise, however, it is not possible for Honda to reasonably estimate the amount and timing of potential future losses as of the date of this report.

 

—16—


Table of Contents

[Translation]

May 13, 2022

 

To:

Shareholders of Honda Motor Co., Ltd.

From:

Honda Motor Co., Ltd.

1-1, Minami-Aoyama 2-chome,

Minato-ku, Tokyo, 107-8556

Toshihiro Mibe

Director, President and Representative Executive Officer

Notice of Resolution by the Board of Directors

Concerning Distribution of Surplus

for the Fiscal Year Ending March 31, 2022

The Board of Directors of Honda Motor Co., Ltd. (the “Company”), at its meeting held on May 13, 2022, resolved to make a distribution of surplus, the record date of which is March 31, 2022 as follows:

Particulars

1. Details of Distribution of Surplus

 

     Resolution    Previous Dividends
Forecast

(Announced on
February 9, 2022)
   Dividends Paid for the
Fiscal Year-end

in Fiscal 2021

Record Date

   March 31, 2022    March 31, 2022    March 31, 2021

Dividends per Share of Common Stock (yen)

   65    55    54

Total Amount of Dividends (million yen)

   111,256    —      93,272

Effective Date

   June 6, 2022    —      June 7, 2021

Source of Funds for Dividends

   Retained Earnings    —      Retained Earnings


Table of Contents

2. Basis of the Distribution of Surplus

The Company considers the redistribution of profits to its shareholders to be one of its most important management issues, and makes distributions after taking into account, among others, its retained earnings for future growth and consolidated earnings performance based on a long-term perspective. The Company resolved that a fiscal year-end dividend payment of ¥65 per share of common stock is to be paid considering its consolidated financial results for the fiscal year ending March 31, 2022.

Reference: Details of Annual Dividends

 

     Dividends per Share (yen)

Record Date

   End of
First
    Quarter    
   End of
Second
    Quarter    
   End of
Third
    Quarter    
   Fiscal
    Year-end    
       Total    

Dividends Paid in Fiscal 2022

   —      55    —      65    120

Dividends Paid in Fiscal 2021

   11    19    26    54    110
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