6-K 1 d771145d6k.htm FORM 6-K Form 6-K
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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 AUGUST 2019

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/ Masao Kawaguchi

Masao Kawaguchi
General Manager
Finance Division
Honda Motor Co., Ltd.

Date: August 6, 2019


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August 2, 2019

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL FIRST QUARTER

ENDED JUNE 30, 2019

Tokyo, August 2, 2019 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal first quarter ended June 30, 2019.

First Quarter Results

Honda’s consolidated sales revenue for the three months ended June 30, 2019 decreased by 0.7%, to JPY 3,996.2 billion from the same period last year, due mainly to decreased sales revenue in Automobile business, Motorcycle business, Life creation and other businesses operations as well as negative foreign currency effects, which was partially offset by increased sales revenue in Financial services business operations. Operating profit decreased by 15.7%, to JPY 252.4 billion from the same period last year, due mainly to increased selling, general and administrative expenses, a decrease in profit attributable to decreased sales revenue and model mix as well as negative foreign currency effects, which was partially offset by continuing cost reduction. Profit before income taxes decreased by 19.1%, to JPY 289.8 billion from the same period last year. Profit for the period attributable to owners of the parent decreased by 29.5%, to JPY 172.3 billion from the same period last year.

Earnings per share attributable to owners of the parent for the quarter amounted to JPY 97.92, a decrease of JPY 39.83 from the corresponding period last year. One Honda American Depository Share represents one common share.

 

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Consolidated Statements of Financial Position for the Fiscal First Quarter Ended June 30, 2019

Total assets decreased by JPY 112.4 billion, to JPY 20,306.7 billion from March 31, 2019, mainly due to foreign currency translation effects, despite an increase in Property, plant and equipment which includes right-of-use assets through the adoption of IFRS 16. Total liabilities decreased by JPY 58.2 billion, to JPY 11,795.0 billion from March 31, 2019, mainly due to decreased Trade payables and foreign currency translation effects, despite an increase in Other financial liabilities which includes lease liabilities through the adoption of IFRS 16. Total equity decreased by JPY 54.1 billion, to JPY 8,511.6 billion from March 31, 2019 due mainly to foreign currency translation effects, despite an increase in Retained earnings attributable to Profit for the period.

Consolidated Statements of Cash Flows for the Fiscal First Quarter Ended June 30, 2019

Consolidated cash and cash equivalents on June 30, 2019 decreased by JPY 102.9 billion from March 31, 2019, to JPY 2,391.1 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the same period last year, are as follows:

Net cash provided by operating activities amounted to JPY 195.5 billion of cash inflows. Cash inflows from operating activities decreased by JPY 18.8 billion from the same period last year, due mainly to increased payments for parts and raw materials, which was partially offset by decreased payment of income taxes.

Net cash used in investing activities amounted to JPY 168.1 billion of cash outflows. Cash outflows from investing activities decreased by JPY 75.8 billion from the same period last year, due mainly to decreased payments for acquisitions of other financial assets, which was partially offset by a decrease in proceeds from sales and redemptions of other financial assets.

Net cash used in financing activities amounted to JPY 83.8 billion of cash outflows. Cash outflows from financing activities increased by JPY 23.4 billion from the same period last year, due mainly to an increase in repayments of financing liabilities, which was partially offset by an increase in proceeds from financing liabilities.

 

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Forecasts for the Fiscal Year Ending March 31, 2020

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2020, Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2020

 

     Yen (billions)      Changes from FY 2019  

Sales revenue

     15,650.0        - 1.5

Operating profit

     770.0        + 6.0

Profit before income taxes

     995.0        + 1.6

Profit for the year

     710.0        + 5.0

Profit for the year attributable to owners of the parent

     645.0        + 5.7
     Yen         

Earnings per share attributable to owners of the parent

     

Basic and diluted

     366.57     

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 110 for the full year ending March 31, 2020.

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, 2020 from the previous year are as follows.

 

     Yen (billions)  

Revenue, model mix, etc.

     - 103.4  

Cost reduction, the effect of raw material cost fluctuations, etc.

     + 118.0  

SG&A expenses

     + 28.0  

R&D expenses

     - 7.0  

Currency effect

     - 50.0  

The impact to Europe related to changes of the global automobile production network and capability*

     + 58.0  
  

 

 

 

Operating profit compared with fiscal year ended March 31, 2019

     + 43.6  
  

 

 

 

Share of profit of investments accounted for using the equity method

     - 8.8  

Finance income and finance costs

     - 19.1  
  

 

 

 

Profit before income taxes compared with fiscal year ended March 31, 2019

     + 15.6  
  

 

 

 

* The impact to Europe related to changes of the global automobile production network and capability in FY2019 was JPY 68.0 billion and the forecast for the FY2020 is JPY 10.0 billion

Dividend per Share of Common Stock

Fiscal first quarter dividend is JPY 28 per share of common stock. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2020, is JPY 112 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.

 

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[1] Condensed Consolidated Statements of Financial Position

 

     Yen (millions)  
     Mar. 31, 2019     Jun. 30, 2019  

Assets

    

Current assets:

    

Cash and cash equivalents

     2,494,121       2,391,188  

Trade receivables

     793,245       771,359  

Receivables from financial services

     1,951,633       1,892,869  

Other financial assets

     163,274       151,895  

Inventories

     1,586,787       1,559,036  

Other current assets

     358,234       350,061  
  

 

 

   

 

 

 

Total current assets

     7,347,294       7,116,408  
  

 

 

   

 

 

 

Non-current assets:

    

Investments accounted for using the equity method

     713,039       736,942  

Receivables from financial services

     3,453,617       3,385,135  

Other financial assets

     417,149       432,848  

Equipment on operating leases

     4,448,849       4,408,620  

Property, plant and equipment

     2,981,840       3,132,937  

Intangible assets

     744,368       754,026  

Deferred tax assets

     150,318       149,801  

Other non-current assets

     162,648       189,985  
  

 

 

   

 

 

 

Total non-current assets

     13,071,828       13,190,294  
  

 

 

   

 

 

 

Total assets

     20,419,122       20,306,702  
  

 

 

   

 

 

 

Liabilities and Equity

    

Current liabilities:

    

Trade payables

     1,184,882       1,054,752  

Financing liabilities

     3,188,782       3,001,424  

Accrued expenses

     476,300       442,990  

Other financial liabilities

     132,910       188,300  

Income taxes payable

     49,726       57,503  

Provisions

     348,763       311,324  

Other current liabilities

     599,761       572,437  
  

 

 

   

 

 

 

Total current liabilities

     5,981,124       5,628,730  
  

 

 

   

 

 

 

Non-current liabilities:

    

Financing liabilities

     4,142,338       4,171,839  

Other financial liabilities

     63,689       301,018  

Retirement benefit liabilities

     398,803       407,055  

Provisions

     220,745       231,858  

Deferred tax liabilities

     727,411       732,074  

Other non-current liabilities

     319,222       322,469  
  

 

 

   

 

 

 

Total non-current liabilities

     5,872,208       6,166,313  
  

 

 

   

 

 

 

Total liabilities

     11,853,332       11,795,043  
  

 

 

   

 

 

 

Equity:

    

Common stock

     86,067       86,067  

Capital surplus

     171,460       171,538  

Treasury stock

     (177,827     (177,751

Retained earnings

     7,973,637       8,096,826  

Other components of equity

     214,383       70,360  
  

 

 

   

 

 

 

Equity attributable to owners of the parent

     8,267,720       8,247,040  

Non-controlling interests

     298,070       264,619  
  

 

 

   

 

 

 

Total equity

     8,565,790       8,511,659  
  

 

 

   

 

 

 

Total liabilities and equity

     20,419,122       20,306,702  
  

 

 

   

 

 

 

 

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

Condensed Consolidated Statements of Income

For the three months ended June 30, 2018 and 2019

 

     Yen (millions)  
     Three months ended
Jun. 30, 2018
    Three months ended
Jun. 30, 2019
 

Sales revenue

     4,024,133       3,996,253  

Operating costs and expenses:

    

Cost of sales

     (3,162,696     (3,166,483

Selling, general and administrative

     (371,656     (407,449

Research and development

     (190,398     (169,852
  

 

 

   

 

 

 

Total operating costs and expenses

     (3,724,750     (3,743,784
  

 

 

   

 

 

 

Operating profit

     299,383       252,469  
  

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

     54,302       44,230  

Finance income and finance costs:

    

Interest income

     11,913       14,195  

Interest expense

     (2,963     (3,595

Other, net

     (4,353     (17,488
  

 

 

   

 

 

 

Total finance income and finance costs

     4,597       (6,888
  

 

 

   

 

 

 

Profit before income taxes

     358,282       289,811  

Income tax expense

     (91,560     (100,219
  

 

 

   

 

 

 

Profit for the period

     266,722       189,592  
  

 

 

   

 

 

 

Profit for the period attributable to:

    

Owners of the parent

     244,330       172,302  

Non-controlling interests

     22,392       17,290  
     Yen  

Earnings per share attributable to owners of the parent

    

Basic and diluted

     137.75       97.92  

 

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Table of Contents

Condensed Consolidated Statements of Comprehensive Income

For the three months ended June 30, 2018 and 2019

 

     Yen (millions)  
     Three months ended
Jun. 30, 2018
    Three months ended
Jun. 30, 2019
 

Profit for the period

         266,722           189,592  

Other comprehensive income, net of tax:

    

Items that will not be reclassified to profit or loss

    

Remeasurements of defined benefit plans

     —         —    

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

     124       (6,348

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

     (1,284     (825

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

     (1     110  

Exchange differences on translating foreign operations

     71,534       (129,218

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

     (13,841     (14,259
  

 

 

   

 

 

 

Total other comprehensive income, net of tax

     56,532       (150,540
  

 

 

   

 

 

 

Comprehensive income for the period

     323,254       39,052  
  

 

 

   

 

 

 

Comprehensive income for the period attributable to:

    

Owners of the parent

     302,588       28,277  

Non-controlling interests

     20,666       10,775  

 

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[3] Condensed Consolidated Statements of Changes in Equity

As of and for the three months ended June 30, 2018

 

    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, 2018

    86,067       171,118       (113,271     7,611,332       178,292       7,933,538       300,557       8,234,095  

Effect of changes in accounting policy

          (46,833     (208     (47,041     6       (47,035
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted balance as of April 1, 2018

    86,067       171,118       (113,271     7,564,499       178,084       7,886,497       300,563       8,187,060  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income for the period

               

Profit for the period

          244,330         244,330       22,392       266,722  

Other comprehensive income, net of tax

            58,258       58,258       (1,726     56,532  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the period

          244,330       58,258       302,588       20,666       323,254  

Reclassification to retained earnings

          80       (80     —        

 

—  

 

Transactions with owners and other

               

Dividends paid

          (48,013       (48,013     (51,861     (99,874

Purchases of treasury stock

        (43,441         (43,441       (43,441
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

        (43,441     (48,013       (91,454     (51,861     (143,315
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of June 30, 2018

    86,067       171,118       (156,712     7,760,896       236,262       8,097,631       269,368       8,366,999  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
As of and for the three months ended June 30, 2019

 

    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, 2019

    86,067       171,460       (177,827     7,973,637       214,383       8,267,720       298,070       8,565,790  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income for the period

               

Profit for the period

          172,302         172,302       17,290       189,592  

Other comprehensive income, net of tax

            (144,025     (144,025     (6,515     (150,540
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the period

          172,302       (144,025     28,277       10,775       39,052  

Reclassification to retained earnings

          (2     2       —           —    

Transactions with owners and other

               

Dividends paid

          (49,287       (49,287     (44,226     (93,513

Purchases of treasury stock

        (3         (3       (3

Disposal of treasury stock

        79           79         79  

Share-based payment transactions

      78             78         78  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

      78       76       (49,287       (49,133     (44,226     (93,359
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other changes

          176         176         176  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of June 30, 2019

    86,067       171,538       (177,751     8,096,826       70,360       8,247,040       264,619       8,511,659  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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Table of Contents

[4] Consolidated Statements of Cash Flows

 

     Yen (millions)  
     Three months
ended
Jun. 30, 2018
    Three months
ended
Jun. 30, 2019
 

Cash flows from operating activities:

    

Profit before income taxes

     358,282       289,811  

Depreciation, amortization and impairment losses excluding equipment on operating leases

     186,819       170,016  

Share of profit of investments accounted for using the equity method

     (54,302     (44,230

Finance income and finance costs, net

     (39,201     (9,127

Interest income and interest costs from financial services, net

     (29,870     (32,344

Changes in assets and liabilities

    

Trade receivables

     25,256       9,919  

Inventories

     12,510       (12,930

Trade payables

     (55,189     (53,045

Accrued expenses

     (42,209     (34,712

Provisions and retirement benefit liabilities

     (26,241     10,907  

Receivables from financial services

     (48,179     6,582  

Equipment on operating leases

     (48,399     (53,086

Other assets and liabilities

     (21,513     (83,469

Other, net

     158       1,866  

Dividends received

     23,344       26,632  

Interest received

     65,751       73,532  

Interest paid

     (25,757     (32,873

Income taxes paid, net of refunds

     (66,818     (37,861
  

 

 

   

 

 

 

Net cash provided by operating activities

     214,442       195,588  

Cash flows from investing activities:

    

Payments for additions to property, plant and equipment

     (144,899     (97,415

Payments for additions to and internally developed intangible assets

     (37,608     (58,172

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

     7,022       7,885  

Payments for acquisitions of investments accounted for using the equity method

     (2,401     (2,401

Payments for acquisitions of other financial assets

     (150,294     (60,055

Proceeds from sales and redemptions of other financial assets

     84,214       42,018  
  

 

 

   

 

 

 

Net cash used in investing activities

     (243,966     (168,140

Cash flows from financing activities:

    

Proceeds from short-term financing liabilities

     1,882,899       2,049,304  

Repayments of short-term financing liabilities

     (1,824,528     (2,318,708

Proceeds from long-term financing liabilities

     267,458       494,872  

Repayments of long-term financing liabilities

     (253,164     (219,727

Dividends paid to owners of the parent

     (48,013     (49,287

Dividends paid to non-controlling interests

     (29,227     (22,967

Purchases and sales of treasury stock, net

     (43,441     76  

Repayments of lease liabilities

     (12,340     (17,400

Other, net

     —         2  
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     (60,356     (83,835

Effect of exchange rate changes on cash and cash equivalents

     497       (46,546
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (89,383     (102,933

Cash and cash equivalents at beginning of year

     2,256,488       2,494,121  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

     2,167,105       2,391,188  
  

 

 

   

 

 

 

 

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Table of Contents

[5] Assumptions for Going Concern

None

[6] Notes to Consolidated Financial Statements

[A] Changes in accounting policies

IFRS 16 “Leases”

Honda has adopted IFRS 16 “Leases” with a date of initial application of April 1, 2019. Honda used the modified retrospective approach, under which the cumulative effect of initial application was recognized as an adjustment to the opening balance of equity at the date of initial application. Therefore, the comparative information has not been restated and continues to be reported under the previous accounting policy.

Previously, Honda determined at contract inception whether an arrangement was or contained a lease under IAS 17 “Leases” and IFRIC 4 “Determining whether an Arrangement contains a Lease”. Honda assesses whether a contract is or contains a lease under IFRS 16 on or after April 1, 2019. Honda applied the practical expedient to grandfather the assessment of which a contract was or contained a lease when applying IFRS 16. Therefore, Honda applied IFRS 16 to all contracts entered into prior to April 1, 2019 and identified as leases under IAS 17 and IFRIC 4.

IFRS 16 introduced a single on-balance lease accounting model for lessees. A lessee recognizes a right-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. In addition, expenses related to leases change from straight-line operating lease expenses to depreciation charge for right-of-use assets and interest expense on lease liabilities. At transition, Honda recognized the lease liabilities for leases previously classified as an operating lease under IAS 17, and measured these liabilities at the present value of the remaining lease payments, discounted using Honda’s incremental borrowing rate as of April 1, 2019. The weighted average rate applied was 1.19%. The right-of-use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the statement of financial position immediately before the date of initial application. In addition, Honda applied the following practical expedients when applying IFRS 16.

 

   

Applied a single discount rate to a portfolio of leases with reasonably similar characteristics.

 

   

Adjusted the right-of-use assets by the amount of any provision for onerous leases under IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” recognized immediately before the date of initial application as an alternative to performing an impairment review.

 

   

Excluded initial direct costs from the measurement of the right-of-use assets at the date of initial application.

In the condensed consolidated statements of financial position, lease liabilities are included in other financial liabilities and right-of-use assets are included in property, plant and equipment.

Honda recognized additional lease liabilities of JPY 272,232 million and total assets, mainly right-of-use assets were recognized approximately in the same amounts in the condensed consolidated statements of financial position as of April 1, 2019.

The difference between the future minimum lease payments under non-cancelable operating leases as of March 31, 2019 disclosed in the consolidated financial statements immediately before the date of initial application, and the lease liabilities recognized as of April 1, 2019, is as follows:

 

     Yen (millions)  

Future minimum lease payments under non-cancelable operating leases as of March 31, 2019

     115,634  

Discounted using the incremental borrowing rate as of April 1, 2019

     108,147  
  

 

 

 

Add: Finance lease obligations

     62,308  

Add: Cancelable operating leases

     11,612  

Add: Extension options reasonably certain to be exercised

     152,473  
  

 

 

 

Lease liabilities recognized as of April 1, 2019

     334,540  
  

 

 

 

 

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Table of Contents

[B] 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 condensed 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 (S×S) 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

* Power product business has been renamed Life creation business from April 1, 2019.

Honda expands the concept of our Power product business and continue pursuing it under a new concept of “Life Creation Business”. This renaming of the business represents our intention to evolve our business as a function to create new value for “mobility” and “daily lives”, which includes our existing Power product business as well as new businesses for the future, including energy business.

1. Segment information based on products and services

As of and for the three months ended June 30, 2018

 

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

Sales revenue:

                  

External customers

     554,907        2,797,336        589,895        81,995       4,024,133        —         4,024,133  

Intersegment

     —          47,855        3,290        5,847       56,992        (56,992     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     554,907        2,845,191        593,185        87,842       4,081,125        (56,992     4,024,133  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

     92,130        151,681        57,179        (1,607     299,383        —         299,383  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment assets

     1,501,577        7,930,533        9,783,246        306,719       19,522,075        129,729       19,651,804  

Depreciation and amortization

     17,703        164,631        190,329        3,410       376,073        —         376,073  

Capital expenditures

     9,750        122,615        504,192        2,442       638,999        —         638,999  

 

As of and for the three months ended June 30, 2019

 

 

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

Sales revenue:

                  

External customers

     533,018        2,694,478        688,401        80,356       3,996,253        —         3,996,253  

Intersegment

     —          55,662        3,624        4,888       64,174        (64,174     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     533,018        2,750,140        692,025        85,244       4,060,427        (64,174     3,996,253  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

     69,873        120,375        65,782        (3,561     252,469        —         252,469  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment assets

     1,500,514        8,104,744        10,076,682        338,134       20,020,074        286,628       20,306,702  

Depreciation and amortization

     17,072        146,891        206,866        3,579       374,408        —         374,408  

Capital expenditures

     13,552        101,076        576,451        3,058       694,137        —         694,137  

Explanatory notes:

 

1.

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

 

2.

Unallocated corporate assets, included in reconciling items, amounted to JPY 417,739 million as of June 30, 2018 and JPY 551,689 million as of June 30, 2019 respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

 

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Table of Contents

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

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

As of and for the three months ended June 30, 2018

 

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

Sales revenue:

                      

External customers

     554,143        2,177,299        172,979        918,723        200,989        4,024,133        —         4,024,133  

Inter-geographic areas

     586,072        136,051        64,262        176,989        2,346        965,720        (965,720     —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     1,140,215        2,313,350        237,241        1,095,712        203,335        4,989,853        (965,720     4,024,133  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating profit (loss)

     14,712        110,360        7,035        122,514        22,635        277,256        22,127       299,383  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Assets

     4,373,497        11,140,457        666,118        2,981,065        610,157        19,771,294        (119,490     19,651,804  

Non-current assets other than financial instruments and deferred tax assets

     2,581,488        4,707,715        97,930        666,829        144,446        8,198,408        —      

 

8,198,408

 

As of and for the three months ended June 30, 2019

 

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

Sales revenue:

                      

External customers

     594,300        2,213,126        155,392        844,102        189,333        3,996,253        —         3,996,253  

Inter-geographic areas

     556,455        102,919        50,838        175,163        1,943        887,318        (887,318     —    
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     1,150,755        2,316,045        206,230        1,019,265        191,276        4,883,571        (887,318     3,996,253  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating profit (loss)

     36,672        102,701        2,600        97,961        8,479        248,413        4,056       252,469  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Assets

     4,766,236        11,200,662        639,831        3,043,833        619,899        20,270,461        36,241       20,306,702  

Non-current assets other than financial instruments and deferred tax assets

     2,922,170        4,653,618        94,351        673,137        142,292        8,485,568        —         8,485,568  

Explanatory notes:

 

1.

Major countries or regions in each geographic area:

 

North America

   United States, Canada, Mexico

Europe

   United Kingdom, Germany, Belgium, Italy, France

Asia

   Thailand, Indonesia, China, India, Vietnam

Other Regions

   Brazil, Australia

 

2.

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

 

3.

Unallocated corporate assets, included in reconciling items, amounted to JPY 417,739 million as of June 30, 2018 and JPY 551,689 million as of June 30, 2019 respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

 

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Table of Contents

[C] 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.

For the related civil lawsuits mainly in the Unites States, Honda did not recognize a provision for loss contingencies because the conditions for a provision have not been met as of the date of this report. Therefore, it is not possible for Honda to reasonably estimate the amount and timing of potential future losses as of the date of this report because there are some uncertainties, such as the period when these lawsuits will be concluded.

 

—12—