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 October 2012
COMMISSION FILE NUMBER: 1-07628
HONDA GIKEN KOGYO KABUSHIKI KAISHA
(Name of registrant)
HONDA MOTOR CO., LTD.
(Translation of registrants 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 x 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): ¨
On October 29, 2012, Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal second quarter ended September 30, 2012.
Honda Motor Co., Ltd. revised its forecasts for consolidated and unconsolidated financial results of the fiscal year ending March 31, 2013 that were announced on April 27, 2012.
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/ Fumihiko Ike |
Fumihiko Ike |
Senior Managing Officer and Director |
Chief Financial Officer |
Honda Motor Co., Ltd. |
Date: November 8, 2012
HONDA MOTOR CO., LTD. REPORTS
CONSOLIDATED FINANCIAL RESULTS
FOR THE FISCAL SECOND QUARTER ENDED SEPTEMBER 30, 2012
Tokyo, October 29, 2012 Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal second quarter ended September 30, 2012.
Second Quarter Results
Hondas consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal second quarter ended September 30, 2012 totaled JPY 82.2 billion (USD 1,060 million), an increase of 36.1% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the quarter amounted to JPY 45.63 (USD 0.59), an increase of JPY 12.10 (USD 0.16) from JPY 33.53 for the corresponding period last year. One Honda American Depository Share represents one common share.
Consolidated net sales and other operating revenue (herein referred to as revenue) for the quarter amounted to JPY 2,271.2 billion (USD 29,269 million), an increase of 20.4% from the same period last year, due primarily to increased revenue in automobile business operation as the production has recovered from the impacts of the Great East Japan Earthquake, despite unfavorable foreign currency translation effects.
Consolidated operating income for the quarter amounted to JPY 100.8 billion (USD 1,300 million), an increase of 92.1% from the same period last year, due primarily to an increase in sales volume and model mix and cost reduction, despite increased SG&A expenses and R&D expenses and unfavorable foreign currency effects.
Consolidated income before income taxes and equity in income of affiliates for the quarter totaled JPY 106.2 billion (USD 1,369 million), an increase of 38.8% from the same period last year.
Equity in income of affiliates amounted to JPY 27.4 billion (USD 354 million) for the quarter, an increase of 76.7% from the corresponding period last year.
- 1 -
Business Segment
Motorcycle Business
For the three months ended September 30, 2011 and 2012
Unit (Thousands) | ||||||||||||||||||||||||||||||||
Honda Group Unit Sales | Consolidated Unit Sales | |||||||||||||||||||||||||||||||
Three months ended Sep. 30, 2011 |
Three months ended Sep. 30, 2012 |
Change | % | Three months ended Sep. 30, 2011 |
Three months ended Sep. 30, 2012 |
Change | % | |||||||||||||||||||||||||
Motorcycle business |
3,811 | 3,879 | 68 | 1.8 | 2,187 | 2,377 | 190 | 8.7 | ||||||||||||||||||||||||
Japan |
63 | 57 | -6 | -9.5 | 63 | 57 | -6 | -9.5 | ||||||||||||||||||||||||
North America |
53 | 60 | 7 | 13.2 | 53 | 60 | 7 | 13.2 | ||||||||||||||||||||||||
Europe |
47 | 38 | -9 | -19.1 | 47 | 38 | -9 | -19.1 | ||||||||||||||||||||||||
Asia |
3,102 | 3,235 | 133 | 4.3 | 1,478 | 1,733 | 255 | 17.3 | ||||||||||||||||||||||||
Other Regions |
546 | 489 | -57 | -10.4 | 546 | 489 | -57 | -10.4 |
Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.
With respect to Hondas sales for the fiscal second quarter by business segment, in motorcycle business operation, revenue from sales to external customers decreased 13.3%, to JPY 309.7 billion (USD 3,991 million) from the same period last year, due mainly to unfavorable foreign currency translation effects, despite of the increase of the consolidated unit sales. Operating income totaled JPY 25.4 billion (USD 327 million), a decrease of 34.8% from the same period last year, due primarily to decrease of the sales of the exported parts for production from Japan to overseas and unfavorable foreign currency effects, despite decreased SG&A expenses.
Automobile Business
For the three months ended September 30, 2011 and 2012
Unit (Thousands) | ||||||||||||||||||||||||||||||||
Honda Group Unit Sales | Consolidated Unit Sales | |||||||||||||||||||||||||||||||
Three months ended Sep. 30, 2011 |
Three months ended Sep. 30, 2012 |
Change | % | Three months ended Sep. 30, 2011 |
Three months ended Sep. 30, 2012 |
Change | % | |||||||||||||||||||||||||
Automobile business |
678 | 996 | 318 | 46.9 | 571 | 816 | 245 | 42.9 | ||||||||||||||||||||||||
Japan |
133 | 169 | 36 | 27.1 | 131 | 168 | 37 | 28.2 | ||||||||||||||||||||||||
North America |
269 | 404 | 135 | 50.2 | 269 | 404 | 135 | 50.2 | ||||||||||||||||||||||||
Europe |
40 | 44 | 4 | 10.0 | 40 | 44 | 4 | 10.0 | ||||||||||||||||||||||||
Asia |
190 | 301 | 111 | 58.4 | 85 | 122 | 37 | 43.5 | ||||||||||||||||||||||||
Other Regions |
46 | 78 | 32 | 69.6 | 46 | 78 | 32 | 69.6 |
Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles and are not included in consolidated net sales to the external customers in our automobile business. As a result, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile business.
- 2 -
In automobile business operation, revenue from sales to external customers increased 32.5%, to JPY 1,766.2 billion (USD 22,760 million) from the same period last year due mainly to an increase in consolidated unit sales, despite unfavorable foreign currency translation effects. Operating income totaled JPY 37.1 billion (USD 479 million), an increase of JPY 66.2 billion (USD 854 million) from the same period last year, due primarily to an increase in sales volume and model mix and cost reduction, despite increased SG&A expenses and R&D expenses, and unfavorable foreign currency effects.
Financial Services Business
Revenue from customers in the financial services business increased 3.1%, to JPY 130.4 billion (USD 1,680 million) from the same period last year. Operating income decreased 10.6% to JPY 38.2 billion (USD 493 million) from the same period last year due mainly to increase of gross residual losses on leased vehicles.
Power Product and Other Businesses
For the three months ended September 30, 2011 and 2012
Unit (Thousands) | ||||||||||||||||
Honda Group Unit Sales/ Consolidated Unit Sales | ||||||||||||||||
Three months ended Sep. 30, 2011 |
Three
months ended Sep. 30, 2012 |
Change | % | |||||||||||||
Power product business |
1,276 | 1,288 | 12 | 0.9 | ||||||||||||
Japan |
115 | 88 | -27 | -23.5 | ||||||||||||
North America |
437 | 436 | -1 | -0.2 | ||||||||||||
Europe |
200 | 150 | -50 | -25.0 | ||||||||||||
Asia |
390 | 462 | 72 | 18.5 | ||||||||||||
Other Regions |
134 | 152 | 18 | 13.4 |
Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. In power product business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales for the three months ended September 30, 2011 and for the three months ended September 30, 2012, since no affiliate accounted for under the equity method was involved in the sale of Honda power products.
Revenue from sales to external customers in power product and other businesses decreased 5.9%, to JPY 64.9 billion (USD 837 million) from the same period last year, due mainly to decreased revenue in other businesses and the unfavorable foreign currency translation effects, despite increase in consolidated unit sales of power products.
Operating income increased by JPY 167 million (USD 2 million) to JPY 53 million (USD 1 million) from the same period last year due mainly to an increase in sales volume and model mix of power product, despite increased SG&A expenses and unfavorable foreign currency effects.
- 3 -
Geographical Information
With respect to Hondas sales for the fiscal second quarter by geographic segment, in Japan, revenue from domestic and export sales amounted to JPY 925.0 billion (USD 11,921 million), an increase of 14.9% from the same period last year due mainly to increased revenue in the automobile business operation, despite decreased revenue in the motorcycle operation. Operating income totaled JPY 30.0 billion (USD 387 million), an increase of JPY 65.3 billion (USD 842 million) from the same period last year due mainly to an increase in sales volume and model mix, despite increased R&D expenses.
In North America, revenue increased by 32.8%, to JPY 1,054.7 billion (USD 13,592 million) from the same period last year due mainly to increased revenue in the automobile business operation. Operating income totaled JPY 26.7 billion (USD 345 million), a decrease of 43.9% from the same period last year due mainly to increased SG&A expenses, despite an increase in sales volume and model mix.
In Europe, revenue stayed the same level at JPY 144.5 billion (USD 1,863 million) from the same period last year due to unfavorable foreign currency translation effects, despite increased revenue in the automobile business operation. Honda reported an operating loss of JPY 8.7 billion (USD 112 million), a JPY 4.6 billion (USD 60 million) deterioration from the same period last year mainly due to increased SG&A expenses and unfavorable foreign currency effects, despite an increase in sales volume and model mix.
- 4 -
In Asia, revenue increased by 32.3%, to JPY 539.4 billion (USD 6,952 million) from the same period last year mainly due to increased revenue in the automobile and motorcycle business operations, despite unfavorable foreign currency translation effects. Operating income increased by 66.5%, to JPY 36.4 billion (USD 469 million) from the same period last year due mainly to an increase in sales volume and model mix, despite unfavorable foreign currency effects.
In Other regions including South America, the Middle East, Africa and Oceania, revenue decreased by 6.0%, to JPY 229.6 billion (USD 2,960 billion) from the same period last year mainly due to decreased revenue in the motorcycle business operation and unfavorable foreign currency translation effects, despite increased revenue in automobile business operation. Operating income totaled JPY 10.5 billion (USD 136 million), a decrease of 54.3% from the same period last year mainly due to increased SG&A expenses and unfavorable foreign currency effects, despite an increase in sales volume and model mix.
Explanatory note
United States dollar amounts have been translated from yen solely for the convenience of the reader at the rate of JPY 77.60=U.S.$1, the mean of the telegraphic transfer selling exchange rate and the telegraphic transfer buying exchange rate prevailing on the Tokyo foreign exchange market on September 30, 2012.
- 5 -
First Half Year Results
Hondas consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal first half year ended September 30, 2012 totaled JPY 213.9 billion, an increase of 132.0% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the fiscal first half amounted to JPY 118.71, an increase of JPY 67.54 from JPY 51.17 for the corresponding period last year.
Consolidated net sales and other operating revenue for the period amounted to JPY 4,707.1 billion, an increase of 30.7% from the same period last year, due primarily to increased revenue in automobile business operation as the production has recovered from the impacts of the Great East Japan Earthquake, despite unfavorable foreign currency translation effects.
Consolidated operating income for the period amounted to JPY 276.8 billion, an increase of 268.7% from the same period last year, due primarily to an increase in sales volume and model mix and cost reduction, despite increased SG&A expenses and R&D expenses, and unfavorable foreign currency effects.
Consolidated income before income taxes and equity in income of affiliates for the period totaled JPY 301.0 billion, an increase of 184.4% from the same period last year.
Equity in income of affiliates amounted to JPY 48.2 billion for the period, an increase of 9.1% from the corresponding period last year.
- 6 -
Business Segment
Motorcycle Business
For the six months ended September 30, 2011 and 2012
Unit (Thousands) | ||||||||||||||||||||||||||||||||
Honda Group Unit Sales | Consolidated Unit Sales | |||||||||||||||||||||||||||||||
Six
months ended Sep. 30, 2011 |
Six
months ended Sep. 30, 2012 |
Change | % | Six
months ended Sep. 30, 2011 |
Six
months ended Sep. 30, 2012 |
Change | % | |||||||||||||||||||||||||
Motorcycle business |
7,288 | 7,790 | 502 | 6.9 | 4,136 | 4,743 | 607 | 14.7 | ||||||||||||||||||||||||
Japan |
115 | 116 | 1 | 0.9 | 115 | 116 | 1 | 0.9 | ||||||||||||||||||||||||
North America |
99 | 119 | 20 | 20.2 | 99 | 119 | 20 | 20.2 | ||||||||||||||||||||||||
Europe |
109 | 98 | -11 | -10.1 | 109 | 98 | -11 | -10.1 | ||||||||||||||||||||||||
Asia |
5,980 | 6,520 | 540 | 9.0 | 2,828 | 3,473 | 645 | 22.8 | ||||||||||||||||||||||||
Other Regions |
985 | 937 | -48 | -4.9 | 985 | 937 | -48 | -4.9 |
Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.
With respect to Hondas sales for the fiscal first half by business segment, in motorcycle business operation, revenue from sales to external customers decreased 4.6%, to JPY 656.3 billion from the same period last year, due mainly to unfavorable foreign currency translation effects, despite increased consolidated unit sales. Operating income totaled JPY 62.2 billion, a decrease of 25.8% from the same period last year, due primarily to unfavorable foreign currency effects, despite increase in sales volume and model mix.
Automobile Business
For the six months ended September 30, 2011 and 2012
Unit (Thousands) | ||||||||||||||||||||||||||||||||
Honda Group Unit Sales | Consolidated Unit Sales | |||||||||||||||||||||||||||||||
Six
months ended Sep. 30, 2011 |
Six
months ended Sep. 30, 2012 |
Change | % | Six
months ended Sep. 30, 2011 |
Six
months ended Sep. 30, 2012 |
Change | % | |||||||||||||||||||||||||
Automobile business |
1,303 | 1,995 | 692 | 53.1 | 1,029 | 1,665 | 636 | 61.8 | ||||||||||||||||||||||||
Japan |
225 | 354 | 129 | 57.3 | 222 | 351 | 129 | 58.1 | ||||||||||||||||||||||||
North America |
494 | 854 | 360 | 72.9 | 494 | 854 | 360 | 72.9 | ||||||||||||||||||||||||
Europe |
75 | 83 | 8 | 10.7 | 75 | 83 | 8 | 10.7 | ||||||||||||||||||||||||
Asia |
406 | 563 | 157 | 38.7 | 135 | 236 | 101 | 74.8 | ||||||||||||||||||||||||
Other Regions |
103 | 141 | 38 | 36.9 | 103 | 141 | 38 | 36.9 |
Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles and are not included in consolidated net sales to the external customers in our automobile business. As a result, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile business.
- 7 -
In automobile business operation, revenue from sales to external customers increased 45.7%, to JPY 3,656.7 billion from the same period last year due mainly to an increase in consolidated unit sales, despite unfavorable foreign currency translation effects. Operating income totaled JPY 137.7 billion, an increase of JPY 243.1 billion from the same period last year, due primarily to an increase in sales volume and model mix and cost reduction, despite increased SG&A expenses and R&D expenses and unfavorable foreign currency effects.
Financial Services Business
Revenue from customers in the financial services business decreased 0.2%, to JPY 261.6 billion from the same period last year due mainly to the unfavorable foreign currency translation effects. Operating income decreased 18.0% to JPY 79.1 billion from the same period last year due mainly to increase in gross residual losses of leased vehicles, increased cost of credit risk and unfavorable foreign currency translation effects.
Power Product and Other Businesses
For the six months ended September 30, 2011 and 2012
Unit (Thousands) | ||||||||||||||||
Honda Group Unit Sales/ Consolidated Unit Sales | ||||||||||||||||
Six months ended Sep. 30, 2011 |
Six months ended Sep. 30, 2012 |
Change | % | |||||||||||||
Power product business |
2,788 | 2,913 | 125 | 4.5 | ||||||||||||
Japan |
235 | 170 | -65 | -27.7 | ||||||||||||
North America |
1,014 | 1,194 | 180 | 17.8 | ||||||||||||
Europe |
507 | 386 | -121 | -23.9 | ||||||||||||
Asia |
789 | 883 | 94 | 11.9 | ||||||||||||
Other Regions |
243 | 280 | 37 | 15.2 |
Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. In power product business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales for the six months ended September 30, 2011 and for the six months ended September 30, 2012, since no affiliate accounted for under the equity method was involved in the sale of Honda power products.
Revenue from sales to external customers in power product and other businesses decreased 5.7%, to JPY 132.4 billion from the same period last year, due mainly to decreased revenue in other businesses and the unfavorable foreign currency translation effects, despite increase in consolidated unit sales of power products. Honda reported an operating loss of JPY 2.2 billion, a decrease of JPY 2.3 billion from the same period last year due mainly to increased SG&A expenses and unfavorable foreign currency effects.
- 8 -
Geographical Information
With respect to Hondas sales for the fiscal first half by geographic segment, in Japan, revenue from domestic and export sales amounted to JPY 1,931.7 billion, an increase of 35.0% from the same period last year due mainly to increased revenue in the automobile business operation. Operating income totaled JPY 91.0 billion, an increase of JPY 172.2 billion from the same period last year due mainly to an increase in sales volume and model mix and cost reduction, despite increased SG&A expenses and R&D expenses.
In North America, revenue increased by 48.5%, to JPY 2,269.4 billion from the same period last year due mainly to increased revenue in the automobile business operation. Operating income totaled JPY 108.9 billion, an increase of 64.6% from the same period last year due mainly to an increase in sales volume and model mix and cost reduction, despite increased SG&A expenses and unfavorable foreign currency effects.
In Europe, revenue decreased by 1.0%, to JPY 292.4 billion from the same period last year mainly due to unfavorable foreign currency translation effects, despite increased revenue in automobile business operation. Honda reported an operating loss of JPY 16.3 billion, a JPY 6.2 billion deterioration from the same period last year mainly due to increased SG&A expenses and unfavorable foreign currency effects, despite an increase in sales volume and model mix.
In Asia, revenue increased by 34.7%, to JPY 1,052.2 billion from the same period last year mainly due to increased revenue in the automobile and motorcycle business operations, despite unfavorable foreign currency translation effects. Operating income increased by 45.1%, to JPY 68.1 billion from the same period last year due mainly to an increase in sales volume and model mix and cost reduction, despite increased SG&A expenses and unfavorable foreign currency effects.
In Other regions including South America, the Middle East, Africa and Oceania, revenue decreased by 5.1%, to JPY 450.0 billion from the same period last year mainly due to decreased revenue in the motorcycle business operation and unfavorable foreign currency translation effects, despite increased revenue in automobile business operations. Operating income totaled JPY 22.8 billion, a decrease of 41.2% from the same period last year mainly due to increased SG&A expenses and unfavorable foreign currency effects, despite an increase in sales volume and model mix.
- 9 -
Consolidated Statements of Balance Sheets for the Fiscal First Half Ended September 30, 2012
Total assets decreased by JPY 333.1 billion, to JPY 11,447.5 billion from March 31, 2012, mainly due to a decrease in cash and cash equivalents and unfavorable foreign currency translation effects, despite increases in fixed assets, property on operating leases and inventory. Total liabilities decreased by JPY 331.5 billion, to JPY 6,920.8 billion from March 31, 2012, mainly due to a decrease in trade accounts payable and foreign currency translation effects. Total equity decreased by JPY 1.6 billion, to JPY 4,526.6 billion from March 31, 2012 due mainly to unfavorable foreign currency translation effects, despite increased net income.
- 10 -
Consolidated Statements of Cash Flow for the Fiscal First Half
Consolidated cash and cash equivalents on September 30, 2012 decreased by JPY 265.8 billion from March 31, 2012, to JPY 981.3 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the same period of the previous fiscal year, are as follows:
Cash flow from operating activities
Net cash provided by operating activities amounted to JPY 309.8 billion of cash inflows for the fiscal first half ended September 30, 2012. Cash inflows from operating activities decreased by JPY 183.8 billion compared with same period of the previous fiscal year due mainly to increased payments for parts and raw materials caused by an increase in automobile production, despite an increase in cash received from customers primarily led by increased unit sales in the automobile business.
Cash flow from investing activities
Net cash used in investing activities amounted to JPY 551.0 billion of cash outflows. Cash outflows from investing activities increased by JPY 272.4 billion compared with the same period of the previous fiscal year, due mainly to an increase in capital expenditures, an increase in purchases of operating lease assets and acquisitions of finance subsidiaries-receivables.
Cash flow from financing activities
Net cash provided by financing activities amounted to JPY 22.7 billion of cash inflows. Cash inflows from financing activities increased by JPY 147.4 billion compared with the same period of the previous fiscal year, due mainly to an increase in proceeds from long-term debt, despite increase in redemption of corporate debt securities.
- 11 -
Forecasts for the Fiscal Year Ending March 31, 2013
In regard to the forecasts of the financial results for the fiscal year ending March 31, 2013, Honda projects consolidated results to be as shown below:
Fiscal year ending March 31, 2013
Yen (billions) | Changes from FY 2012 | |||||||
Net sales and other operating revenue |
9,800 | +23.3 | % | |||||
Operating income |
520 | +124.8 | % | |||||
Income before income taxes and equity in income of affiliates |
540 | +109.8 | % | |||||
Net income attributable to Honda Motor Co., Ltd. |
375 | +77.3 | % | |||||
Yen | ||||||||
Basic net income attributable to Honda Motor Co., Ltd. per common share |
208.07 |
Note: The forecasts are based on the assumption that the average exchange rates for the Japanese yen to the U.S. dollar and the Euro will be JPY 80 and JPY 103, respectively, for the full year ending March 31, 2013.
The reasons for the increases or decreases for forecasts of the operating income, and income before income taxes and equity in income of affiliates for the fiscal year ending March 31, 2013 from the corresponding period last year are as follows.
Yen (billions) | ||||
Revenue, model mix, etc., excluding currency effect |
382.8 | |||
Cost reduction, the effect of raw material cost fluctuations, etc. |
167.0 | |||
SG&A expenses, excluding currency effect |
-181.0 | |||
R&D expenses |
-35.2 | |||
Currency effect |
-45.0 | |||
|
|
|||
Operating income compared with fiscal year 2012 |
288.6 | |||
|
|
|||
Fair value of derivative instruments |
9.0 | |||
Others |
-15.0 | |||
|
|
|||
Income before income taxes and equity in income of affiliates compared with fiscal year 2012 |
282.5 | |||
|
|
- 12 -
Dividend per Share of Common Stock
The Board of Directors of Honda Motor Co., Ltd., at its meeting held on October 29, 2012, resolved to make the quarterly dividend JPY 19 per share of common stock, the record date of which is September 30, 2012. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2013, is JPY 76 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 managements assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that Hondas actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Hondas principal markets and foreign exchange rates between the Japanese yen and the U.S. dollar, the Euro and other major currencies, as well as other factors detailed from time to time.
- 13 -
Other Information
1. Accounting policies specifically applied for quarterly consolidated financial statements
(a) Income taxes
Honda computes interim income tax expense (benefit) by multiplying reasonably estimated annual effective tax rate, which includes the effects of deferred taxes, by year-to-date income before income taxes and equity in income of affiliates for the fiscal six months ended September 30, 2012. If a reliable estimate cannot be made, Honda utilizes the actual year-to-date effective tax rate.
2. Changes in accounting policy
(a) Adoption of New Accounting Pronouncements
In June 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2011-05 Presentation of Comprehensive Income, which amends the FASB Accounting Standards Codification (ASC) 220 Comprehensive Income. This amendment requires reporting entities to report other comprehensive income as components of comprehensive income either in a single continuous statement of comprehensive income or in two separate but consecutive statements and is effective retrospectively.
In December 2011, the FASB issued ASU 2011-12 Deferral of the Effective Date for Amendments to the Presentation of Reclassifications of Items Out of Accumulated Other Comprehensive Income in Accounting Standards Update No. 2011-05, which defers the effective date of pending amendments to current accounting guidance prescribed in ASU 2011-05.
Honda adopted ASU 2011-05 as amended by ASU 2011-12, effective April 1, 2012, and discloses consolidated statements of comprehensive income as two separate but consecutive statements.
(b) Change in depreciation method
Previously, Honda used principally the declining-balance method for calculating the depreciation of property, plant and equipment. In recent years, because sales of global strategic product models are increasing, Honda has been enhancing its production systems and the versatility of production equipment to have better flexibility to meet changes in global customer demand. Further, Honda has resumed more normalized capital expenditures which Honda had previously held down due to financial crisis beginning in the fiscal year ended March 31, 2009. Effective April 1, 2012, Honda changed to the straight line method of depreciation because management believes it better reflects the future economic benefit from the usage of property, plant and equipment under this more flexible and versatile production arrangement. The effect of the change in depreciation method is recognized prospectively as a change in accounting estimate in accordance with the FASB Accounting Standards Codification 250 Accounting Changes and Error Corrections.
As a result of the change in depreciation method, depreciation expense for the six months and three months ended September 30, 2012 decreased by approximately JPY 21,471 million and JPY 11,332 million, respectively. Net income attributable to Honda Motor Co., Ltd. and Basic net income attributable to Honda Motor Co., Ltd. per common share for the six months and three months ended September 30, 2012 increased by approximately JPY 13,716 million and JPY 7.61, JPY 7,286 million and JPY 4.04, respectively.
- 14 -
Consolidated Financial Summary
For the three months and six months ended September 30, 2011 and 2012
Financial Highlights
Yen (millions) | ||||||||||||||||
Three months ended Sep. 30, 2011 Unaudited |
Three months ended Sep. 30, 2012 Unaudited |
Six months ended Sep. 30, 2011 unaudited |
Six months ended Sep. 30, 2012 Unaudited |
|||||||||||||
Net sales and other operating revenue |
1,885,892 | 2,271,286 | 3,600,488 | 4,707,195 | ||||||||||||
Operating income |
52,511 | 100,867 | 75,090 | 276,880 | ||||||||||||
Income before income taxes and equity in income of affiliates |
76,555 | 106,260 | 105,854 | 301,040 | ||||||||||||
Net income attributable to Honda Motor Co., Ltd. |
60,429 | 82,233 | 92,226 | 213,956 | ||||||||||||
Yen | ||||||||||||||||
Basic net income attributable to Honda Motor Co., Ltd per common share |
33.53 | 45.63 | 51.17 | 118.71 | ||||||||||||
U.S. Dollar (millions) | ||||||||||||||||
Three months ended Sep. 30, 2012 Unaudited |
Six months ended Sep. 30, 2012 Unaudited |
|||||||||||||||
Net sales and other operating revenue |
29,269 | 60,660 | ||||||||||||||
Operating income |
1,300 | 3,568 | ||||||||||||||
Income before income taxes and equity in income of affiliates |
1,369 | 3,879 | ||||||||||||||
Net income attributable to Honda Motor Co., Ltd. |
1,060 | 2,757 | ||||||||||||||
U.S. Dollar | ||||||||||||||||
Basic net income attributable to Honda Motor Co., Ltd per common share |
0.59 | 1.53 |
- 15 -
[1] Consolidated Balance Sheets
Yen (millions) | ||||||||
Mar. 31, 2012 audited |
Sep. 30, 2012 unaudited |
|||||||
Assets |
||||||||
Current assets: |
||||||||
Cash and cash equivalents |
1,247,113 | 981,309 | ||||||
Trade accounts and notes receivable |
812,155 | 774,265 | ||||||
Finance subsidiaries-receivables, net |
1,081,721 | 1,049,450 | ||||||
Inventories |
1,035,779 | 1,080,940 | ||||||
Deferred income taxes |
188,755 | 196,661 | ||||||
Other current assets |
373,563 | 316,450 | ||||||
|
|
|
|
|||||
Total current assets |
4,739,086 | 4,399,075 | ||||||
|
|
|
|
|||||
Finance subsidiaries-receivables, net |
2,364,393 | 2,319,902 | ||||||
Investments and advances: |
||||||||
Investments in and advances to affiliates |
434,744 | 461,596 | ||||||
Other, including marketable equity securities |
188,863 | 162,289 | ||||||
|
|
|
|
|||||
Total investments and advances |
623,607 | 623,885 | ||||||
|
|
|
|
|||||
Property on operating leases: |
||||||||
Vehicles |
1,773,375 | 1,794,052 | ||||||
Less accumulated depreciation |
300,618 | 301,439 | ||||||
|
|
|
|
|||||
Net property on operating leases |
1,472,757 | 1,492,613 | ||||||
|
|
|
|
|||||
Property, plant and equipment, at cost: |
||||||||
Land |
488,265 | 488,440 | ||||||
Buildings |
1,492,823 | 1,539,947 | ||||||
Machinery and equipment |
3,300,727 | 3,309,321 | ||||||
Construction in progress |
191,107 | 193,494 | ||||||
|
|
|
|
|||||
5,472,922 | 5,531,202 | |||||||
Less accumulated depreciation and amortization |
3,499,464 | 3,490,868 | ||||||
|
|
|
|
|||||
Net property, plant and equipment |
1,973,458 | 2,040,334 | ||||||
|
|
|
|
|||||
Other assets |
607,458 | 571,778 | ||||||
|
|
|
|
|||||
Total assets |
11,780,759 | 11,447,587 | ||||||
|
|
|
|
- 16 -
[1] Consolidated Balance Sheets continued
Yen (millions) | ||||||||
Mar. 31, 2012 audited |
Sep. 30, 2012 unaudited |
|||||||
Liabilities and Equity |
||||||||
Current liabilities: |
||||||||
Short-term debt |
964,848 | 940,914 | ||||||
Current portion of long-term debt |
911,395 | 934,743 | ||||||
Trade payables: |
||||||||
Notes |
26,499 | 28,993 | ||||||
Accounts |
942,444 | 763,023 | ||||||
Accrued expenses |
489,110 | 490,516 | ||||||
Income taxes payable |
24,099 | 28,517 | ||||||
Other current liabilities |
221,364 | 212,197 | ||||||
|
|
|
|
|||||
Total current liabilities |
3,579,759 | 3,398,903 | ||||||
|
|
|
|
|||||
Long-term debt, excluding current portion |
2,235,001 | 2,137,288 | ||||||
Other liabilities |
1,437,709 | 1,384,708 | ||||||
|
|
|
|
|||||
Total liabilities |
7,252,469 | 6,920,899 | ||||||
|
|
|
|
|||||
Equity: |
||||||||
Honda Motor Co., Ltd. shareholders equity: |
||||||||
Common stock, authorized 7,086,000,000 shares; issued 1,811,428,430 shares on Mar. 31, 2012 and 1,811,428,430 shares on Sep. 30, 2012 |
86,067 | 86,067 | ||||||
Capital surplus |
172,529 | 171,117 | ||||||
Legal reserves |
47,184 | 47,457 | ||||||
Retained earnings |
5,769,029 | 5,921,434 | ||||||
Accumulated other comprehensive income (loss), net |
(1,646,078 | ) | (1,804,147 | ) | ||||
Treasury stock, at cost 9,128,871 shares on Mar. 31, 2012 and 9,129,505 shares on Sep. 30, 2012 |
(26,117 | ) | (26,119 | ) | ||||
|
|
|
|
|||||
Total Honda Motor Co., Ltd. shareholders equity |
4,402,614 | 4,395,809 | ||||||
|
|
|
|
|||||
Noncontrolling interests |
125,676 | 130,879 | ||||||
|
|
|
|
|||||
Total equity |
4,528,290 | 4,526,688 | ||||||
|
|
|
|
|||||
Commitments and contingent liabilities |
||||||||
|
|
|
|
|||||
Total liabilities and equity |
11,780,759 | 11,447,587 | ||||||
|
|
|
|
- 17 -
[2] Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the three months ended September 30, 2011 and 2012
Yen (millions) | ||||||||
Three months ended Sep. 30, 2011 unaudited |
Three months ended Sep. 30, 2012 unaudited |
|||||||
Net sales and other operating revenue |
1,885,892 | 2,271,286 | ||||||
Operating costs and expenses: |
||||||||
Cost of sales |
1,405,811 | 1,702,835 | ||||||
Selling, general and administrative |
299,897 | 327,472 | ||||||
Research and development |
127,673 | 140,112 | ||||||
|
|
|
|
|||||
1,833,381 | 2,170,419 | |||||||
|
|
|
|
|||||
Operating income |
52,511 | 100,867 | ||||||
Other income (expenses): |
||||||||
Interest income |
8,508 | 6,661 | ||||||
Interest expense |
(2,520 | ) | (3,115 | ) | ||||
Other, net |
18,056 | 1,847 | ||||||
|
|
|
|
|||||
24,044 | 5,393 | |||||||
|
|
|
|
|||||
Income before income taxes and equity in income of affiliates |
76,555 | 106,260 | ||||||
Income tax expense: |
||||||||
Current |
35,772 | 37,915 | ||||||
Deferred |
(6,128 | ) | 6,898 | |||||
|
|
|
|
|||||
29,644 | 44,813 | |||||||
|
|
|
|
|||||
Income before equity in income of affiliates |
46,911 | 61,447 | ||||||
Equity in income of affiliates |
15,562 | 27,497 | ||||||
|
|
|
|
|||||
Net income |
62,473 | 88,944 | ||||||
Less: Net income attributable to noncontrolling interests |
2,044 | 6,711 | ||||||
|
|
|
|
|||||
Net income attributable to Honda Motor Co., Ltd. |
60,429 | 82,233 | ||||||
|
|
|
|
|||||
Yen | ||||||||
Basic net income attributable to Honda Motor Co., Ltd. per common share |
33.53 | 45.63 |
- 18 -
Consolidated Statements of Comprehensive Income
For the three months ended September 30, 2011 and 2012
Yen (millions) | ||||||||
Three months ended Sep. 30, 2011 unaudited |
Three months ended Sep. 30, 2012 unaudited |
|||||||
Net income |
62,473 | 88,944 | ||||||
Other comprehensive income (loss), net of tax: |
||||||||
Adjustments from foreign currency translation |
(157,807 | ) | (101,851 | ) | ||||
Unrealized gains (losses) on available-for-sale securities, net |
(8,616 | ) | (2,420 | ) | ||||
Unrealized gains (losses) on derivative instruments, net |
87 | 210 | ||||||
Pension and other postretirement benefits |
1,740 | 1,903 | ||||||
|
|
|
|
|||||
Other comprehensive income (loss), net of tax |
(164,596 | ) | (102,158 | ) | ||||
|
|
|
|
|||||
Comprehensive income (loss) |
(102,123 | ) | (13,214 | ) | ||||
Comprehensive income (loss) attributable to noncontrolling interests |
3,083 | (4,911 | ) | |||||
|
|
|
|
|||||
Comprehensive income (loss) attributable to Honda Motor Co., Ltd. |
(99,040 | ) | (18,125 | ) | ||||
|
|
|
|
- 19 -
Consolidated Statements of Income
For the six months ended September 30, 2011 and 2012
Yen (millions) | ||||||||
Six months ended Sep. 30, 2011 unaudited |
Six months ended Sep. 30, 2012 unaudited |
|||||||
Net sales and other operating revenue |
3,600,488 | 4,707,195 | ||||||
Operating costs and expenses: |
||||||||
Cost of sales |
2,695,451 | 3,494,049 | ||||||
Selling, general and administrative |
592,064 | 670,155 | ||||||
Research and development |
237,883 | 266,111 | ||||||
|
|
|
|
|||||
3,525,398 | 4,430,315 | |||||||
|
|
|
|
|||||
Operating income |
75,090 | 276,880 | ||||||
Other income (expenses): |
||||||||
Interest income |
16,344 | 14,360 | ||||||
Interest expense |
(5,064 | ) | (6,131 | ) | ||||
Other, net |
19,484 | 15,931 | ||||||
|
|
|
|
|||||
30,764 | 24,160 | |||||||
|
|
|
|
|||||
Income before income taxes and equity in income of affiliates |
105,854 | 301,040 | ||||||
Income tax expense: |
||||||||
Current |
58,250 | 73,786 | ||||||
Deferred |
(4,700 | ) | 48,860 | |||||
|
|
|
|
|||||
53,550 | 122,646 | |||||||
|
|
|
|
|||||
Income before equity in income of affiliates |
52,304 | 178,394 | ||||||
Equity in income of affiliates |
44,200 | 48,229 | ||||||
|
|
|
|
|||||
Net income |
96,504 | 226,623 | ||||||
Less: Net income attributable to noncontrolling interests |
4,278 | 12,667 | ||||||
|
|
|
|
|||||
Net income attributable to Honda Motor Co., Ltd. |
92,226 | 213,956 | ||||||
|
|
|
|
|||||
Yen | ||||||||
Basic net income attributable to Honda Motor Co., Ltd. per common share |
51.17 | 118.71 |
- 20 -
Consolidated Statements of Comprehensive Income
For the six months ended September 30, 2011 and 2012
Yen (millions) | ||||||||
Six months ended Sep. 30, 2011 unaudited |
Six months ended Sep. 30, 2012 unaudited |
|||||||
Net income |
96,504 | 226,623 | ||||||
Other comprehensive income (loss), net of tax: |
||||||||
Adjustments from foreign currency translation |
(194,397 | ) | (152,299 | ) | ||||
Unrealized gains (losses) on available-for-sale securities, net |
(5,311 | ) | (12,228 | ) | ||||
Unrealized gains (losses) on derivative instruments, net |
202 | 349 | ||||||
Pension and other postretirement benefits |
3,446 | 4,266 | ||||||
|
|
|
|
|||||
Other comprehensive income (loss), net of tax |
(196,060 | ) | (159,912 | ) | ||||
|
|
|
|
|||||
Comprehensive income (loss) |
(99,556 | ) | 66,711 | |||||
Comprehensive income (loss) attributable to noncontrolling interests |
932 | (10,824 | ) | |||||
|
|
|
|
|||||
Comprehensive income (loss) attributable to Honda Motor Co., Ltd. |
(98,624 | ) | 55,887 | |||||
|
|
|
|
- 21 -
[3] Consolidated Statements of Cash Flows
Yen (millions) | ||||||||
Six months ended Sep. 30, 2011 unaudited |
Six months ended Sep. 30, 2012 unaudited |
|||||||
Cash flows from operating activities: |
||||||||
Net income |
96,504 | 226,623 | ||||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
Depreciation excluding property on operating leases |
152,677 | 142,150 | ||||||
Depreciation of property on operating leases |
101,715 | 118,213 | ||||||
Deferred income taxes |
(4,700 | ) | 48,860 | |||||
Equity in income of affiliates |
(44,200 | ) | (48,229 | ) | ||||
Dividends from affiliates |
22,649 | 31,365 | ||||||
Provision for credit and lease residual losses on finance subsidiaries-receivables |
3,900 | 2,664 | ||||||
Impairment loss on investments in securities |
485 | | ||||||
Impairment loss on property on operating leases |
| 2,208 | ||||||
Gain on derivative instruments, net |
(26,332 | ) | (24,656 | ) | ||||
Decrease (increase) in assets: |
||||||||
Trade accounts and notes receivable |
146,466 | (8,278 | ) | |||||
Inventories |
39,586 | (91,728 | ) | |||||
Other current assets |
75,350 | 53,338 | ||||||
Other assets |
(3,553 | ) | (18,574 | ) | ||||
Increase (decrease) in liabilities: |
||||||||
Trade accounts and notes payable |
29,631 | (120,313 | ) | |||||
Accrued expenses |
(18,304 | ) | 24,494 | |||||
Income taxes payable |
(8,833 | ) | 5,407 | |||||
Other current liabilities |
(32,784 | ) | (387 | ) | ||||
Other liabilities |
(6,106 | ) | 1,290 | |||||
Other, net |
(30,512 | ) | (34,640 | ) | ||||
|
|
|
|
|||||
Net cash provided by operating activities |
493,639 | 309,807 | ||||||
|
|
|
|
|||||
Cash flows from investing activities: |
||||||||
Increase in investments and advances |
(10,813 | ) | (10,928 | ) | ||||
Decrease in investments and advances |
7,135 | 9,572 | ||||||
Payments for purchases of held-to-maturity securities |
(11,156 | ) | (1,118 | ) | ||||
Proceeds from redemptions of held-to-maturity securities |
45,052 | 6,435 | ||||||
Capital expenditures |
(148,098 | ) | (282,332 | ) | ||||
Proceeds from sales of property, plant and equipment |
11,575 | 19,932 | ||||||
Proceeds from insurance recoveries for damaged property, plant and equipment |
| 2,917 | ||||||
Acquisitions of finance subsidiaries-receivables |
(942,009 | ) | (992,380 | ) | ||||
Collections of finance subsidiaries-receivables |
905,972 | 908,938 | ||||||
Purchases of operating lease assets |
(330,307 | ) | (416,447 | ) | ||||
Proceeds from sales of operating lease assets |
194,073 | 204,356 | ||||||
|
|
|
|
|||||
Net cash used in investing activities |
(278,576 | ) | (551,055 | ) | ||||
|
|
|
|
- 22 -
[3] Consolidated Statements of Cash Flows continued
Yen (millions) | ||||||||
Six months ended Sep. 30, 2011 unaudited |
Six months ended Sep. 30, 2012 unaudited |
|||||||
Cash flows from financing activities: |
||||||||
Increase (decrease) in short-term debt, net |
(23,676 | ) | 19,166 | |||||
Proceeds from long-term debt |
373,379 | 592,080 | ||||||
Repayment of long-term debt |
(405,943 | ) | (520,564 | ) | ||||
Dividends paid |
(54,069 | ) | (61,278 | ) | ||||
Dividends paid to noncontrolling interests |
(14,435 | ) | (5,060 | ) | ||||
Purchases of treasury stock, net |
(4 | ) | (2 | ) | ||||
Other, net |
| (1,614 | ) | |||||
|
|
|
|
|||||
Net cash provided by (used in) financing activities |
(124,748 | ) | 22,728 | |||||
|
|
|
|
|||||
Effect of exchange rate changes on cash and cash equivalents |
(49,937 | ) | (47,284 | ) | ||||
|
|
|
|
|||||
Net change in cash and cash equivalents |
40,378 | (265,804 | ) | |||||
|
|
|
|
|||||
Cash and cash equivalents at beginning of the year |
1,279,024 | 1,247,113 | ||||||
|
|
|
|
|||||
Cash and cash equivalents at end of the period |
1,319,402 | 981,309 | ||||||
|
|
|
|
- 23 -
[4] Assumptions for Going Concern
None
[5] Significant changes in Honda Motor Co., Ltd. shareholders equity
None
[6] Segment Information
Honda has four reportable segments: the Motorcycle business, the Automobile business, the Financial services business and the Power product & other businesses, which are based on Hondas organizational structure and characteristics of products and services. Operating segments are defined as components of Hondas about which separate financial information is available that is evaluated regularly by management 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 Hondas 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) and relevant parts |
Research & Development, Manufacturing, Sales and related services | ||
Automobile business |
Automobiles and relevant parts | Research & Development, Manufacturing Sales and related services | ||
Financial services business |
Financial, insurance services | Retail loan and lease related to Honda products, and Others | ||
Power product & Other businesses |
Power products and relevant parts, and others | Research & Development, Manufacturing Sales and related services, and Others |
- 24 -
1. Segment information based on products and services
(A) For the three months ended September 30, 2011
Yen (millions) | ||||||||||||||||||||||||||||
Motorcycle Business |
Automobile Business |
Financial Services Business |
Power Product & Other Businesses |
Segment Total |
Reconciling Items |
Consolidated | ||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||
External customers |
357,333 | 1,333,051 | 126,498 | 69,010 | 1,885,892 | | 1,885,892 | |||||||||||||||||||||
Intersegment |
| 4,094 | 2,665 | 3,123 | 9,882 | (9,882 | ) | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
357,333 | 1,337,145 | 129,163 | 72,133 | 1,895,774 | (9,882 | ) | 1,885,892 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Segment income (loss) |
38,934 | (29,141 | ) | 42,832 | (114 | ) | 52,511 | | 52,511 | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the three months ended September 30, 2012
Yen (millions) | ||||||||||||||||||||||||||||
Motorcycle Business |
Automobile Business |
Financial Services Business |
Power Product & Other Businesses |
Segment Total |
Reconciling Items |
Consolidated | ||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||
External customers |
309,714 | 1,766,213 | 130,400 | 64,959 | 2,271,286 | | 2,271,286 | |||||||||||||||||||||
Intersegment |
| 3,582 | 2,770 | 2,330 | 8,682 | (8,682 | ) | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
309,714 | 1,769,795 | 133,170 | 67,289 | 2,279,968 | (8,682 | ) | 2,271,286 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Segment income (loss) |
25,400 | 37,137 | 38,277 | 53 | 100,867 | | 100,867 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 25 -
(B) As of and for the six months ended September 30, 2011
Yen (millions) | ||||||||||||||||||||||||||||
Motorcycle Business |
Automobile Business |
Financial Services Business |
Power Product & Other Businesses |
Segment Total |
Reconciling Items |
Consolidated | ||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||
External customers |
687,697 | 2,509,964 | 262,321 | 140,506 | 3,600,488 | | 3,600,488 | |||||||||||||||||||||
Intersegment |
| 6,009 | 5,471 | 5,565 | 17,045 | (17,045 | ) | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
687,697 | 2,515,973 | 267,792 | 146,071 | 3,617,533 | (17,045 | ) | 3,600,488 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Segment income (loss) |
83,867 | (105,369 | ) | 96,446 | 146 | 75,090 | | 75,090 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Assets |
1,013,316 | 4,422,585 | 5,169,282 | 299,983 | 10,905,166 | 8,093 | 10,913,259 | |||||||||||||||||||||
Depreciation and amortization |
19,912 | 127,257 | 102,469 | 4,754 | 254,392 | | 254,392 | |||||||||||||||||||||
Capital expenditures |
24,828 | 111,314 | 332,068 | 4,169 | 472,379 | | 472,379 |
As of and for the six months ended September 30, 2012
Yen (millions) | ||||||||||||||||||||||||||||
Motorcycle Business |
Automobile Business |
Financial Services Business |
Power Product & Other Businesses |
Segment Total |
Reconciling Items |
Consolidated | ||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||
External customers |
656,364 | 3,656,723 | 261,679 | 132,429 | 4,707,195 | | 4,707,195 | |||||||||||||||||||||
Intersegment |
| 7,832 | 5,517 | 4,818 | 18,167 | (18,167 | ) | | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Total |
656,364 | 3,664,555 | 267,196 | 137,247 | 4,725,362 | (18,167 | ) | 4,707,195 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Segment income (loss) |
62,202 | 137,798 | 79,114 | (2,234 | ) | 276,880 | | 276,880 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
Assets |
903,372 | 4,946,320 | 5,577,763 | 284,322 | 11,711,777 | (264,190 | ) | 11,447,587 | ||||||||||||||||||||
Depreciation and amortization |
16,420 | 120,868 | 118,872 | 4,203 | 260,363 | | 260,363 | |||||||||||||||||||||
Capital expenditures |
26,653 | 230,473 | 417,058 | 6,780 | 680,964 | | 680,964 |
Explanatory notes:
1. | Intersegment sales and revenues are generally made at values that approximate arms-length prices. |
2. | Unallocated corporate assets, included in reconciling items, amounted to JPY 465,864 million as of September 30, 2011 and JPY 228,945 million as of September 30, 2012 respectively, which consist primarily of cash and cash equivalents, available-for-sale securities and held-to-maturity securities held by the Company. Reconciling items also include elimination of intersegment transactions. |
3. | Depreciation and amortization of Financial Services Business include JPY 101,715 million for the six months ended September 30, 2011 and JPY 118,213 million for the six months ended September 30, 2012, respectively, of depreciation of property on operating leases. |
4. | Capital expenditure of Financial Services Business includes JPY 330,307 million for the six months ended September 30, 2011 and JPY 416,447 million for the six months ended September 30, 2012 respectively, of purchase of operating lease assets. |
5. | The amounts of Net sales and other operating revenue Intersegment for the three months ended and six months ended September 30, 2011 have been corrected from the amounts previously disclosed. |
6. | Previously, Honda used principally the declining-balance method for calculating the depreciation of property, plant and equipment. Effective April 1, 2012, Honda changed to the straight line method of depreciation. As a result of the change in depreciation method, depreciation expense for three months ended September 30, 2012 decreased by approximately JPY 1,503 million in Motorcycle Business, JPY 9,566 million in Automobile Business, JPY 19 million in Financial Services Business and JPY 244 million in Power Product & Other Businesses, respectively. Depreciation expense for six months ended September 30, 2012 decreased by approximately JPY 2,700 million in Motorcycle Business, JPY 18,037 million in Automobile Business, JPY 36 million in Financial Services Business and JPY 698 million in Power Product & Other Businesses, respectively. It resulted in an increase of segment income. For further information, refer to Other Information, 2. Changes in accounting policy, (b) Change in depreciation method. |
7. | For the three months ended September 30, 2012, impact of the floods in Thailand is included in Segment income (loss) of Automobile business, refer to [7] Other, 3. Impact on the Companys consolidated financial position or results of operations of the floods in Thailand. |
- 26 -
In addition to the disclosure required by U.S. GAAP, Honda provides the following supplemental information in order to provide financial statements users with useful information:
2. Supplemental geographical information based on the location of the Company and its subsidiaries
(A) For the three months ended September 30, 2011
Yen (millions) | ||||||||||||||||||||||||||||||||
Japan | North America |
Europe | Asia | Other Regions |
Total | Reconciling Items |
Consolidated | |||||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||
External customers |
415,310 | 746,735 | 128,642 | 354,136 | 241,069 | 1,885,892 | | 1,885,892 | ||||||||||||||||||||||||
Transfers between geographic areas |
390,025 | 47,396 | 15,915 | 53,648 | 3,318 | 510,302 | (510,302 | ) | | |||||||||||||||||||||||
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|
|
|
|
|
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|
|
|
|
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Total |
805,335 | 794,131 | 144,557 | 407,784 | 244,387 | 2,396,194 | (510,302 | ) | 1,885,892 | |||||||||||||||||||||||
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|
|
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|
|
|
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Operating income (loss) |
(35,305 | ) | 47,706 | (4,033 | ) | 21,869 | 23,064 | 53,301 | (790 | ) | 52,511 | |||||||||||||||||||||
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|
|
For the three months ended September 30, 2012
Yen (millions) | ||||||||||||||||||||||||||||||||
Japan | North America |
Europe | Asia | Other Regions |
Total | Reconciling Items |
Consolidated | |||||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||
External customers |
487,603 | 991,793 | 125,461 | 442,879 | 223,550 | 2,271,286 | | 2,271,286 | ||||||||||||||||||||||||
Transfers between geographic areas |
437,483 | 62,969 | 19,110 | 96,582 | 6,122 | 622,266 | (622,266 | ) | | |||||||||||||||||||||||
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|
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Total |
925,086 | 1,054,762 | 144,571 | 539,461 | 229,672 | 2,893,552 | (622,266 | ) | 2,271,286 | |||||||||||||||||||||||
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|
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Operating income (loss) |
30,047 | 26,749 | (8,725 | ) | 36,404 | 10,542 | 95,017 | 5,850 | 100,867 | |||||||||||||||||||||||
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|
- 27 -
(B) As of and for the six months ended September 30, 2011
Yen (millions) | ||||||||||||||||||||||||||||||||
Japan | North America |
Europe | Asia | Other Regions |
Total | Reconciling Items |
Consolidated | |||||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||
External customers |
753,908 | 1,438,584 | 265,242 | 675,893 | 466,861 | 3,600,488 | | 3,600,488 | ||||||||||||||||||||||||
Transfers between geographic areas |
676,803 | 89,489 | 30,228 | 105,343 | 7,449 | 909,312 | (909,312 | ) | | |||||||||||||||||||||||
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|
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Total |
1,430,711 | 1,528,073 | 295,470 | 781,236 | 474,310 | 4,509,800 | (909,312 | ) | 3,600,488 | |||||||||||||||||||||||
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|
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Operating income (loss) |
(81,203 | ) | 66,218 | (10,133 | ) | 46,976 | 38,808 | 60,666 | 14,424 | 75,090 | ||||||||||||||||||||||
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Assets |
2,884,276 | 5,706,119 | 443,498 | 971,348 | 688,254 | 10,693,495 | 219,764 | 10,913,259 | ||||||||||||||||||||||||
Long-lived assets |
1,036,486 | 1,727,544 | 96,927 | 224,247 | 149,569 | 3,234,773 | | 3,234,773 |
As of and for the six months ended September 30, 2012
Yen (millions) | ||||||||||||||||||||||||||||||||
Japan | North America |
Europe | Asia | Other Regions |
Total | Reconciling Items |
Consolidated | |||||||||||||||||||||||||
Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||
External customers |
999,565 | 2,147,345 | 247,479 | 873,541 | 439,265 | 4,707,195 | | 4,707,195 | ||||||||||||||||||||||||
Transfers between geographic areas |
932,179 | 122,128 | 44,971 | 178,730 | 10,749 | 1,288,757 | (1,288,757 | ) | | |||||||||||||||||||||||
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|
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Total |
1,931,744 | 2,269,473 | 292,450 | 1,052,271 | 450,014 | 5,995,952 | (1,288,757 | ) | 4,707,195 | |||||||||||||||||||||||
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|
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Operating income (loss) |
91,025 | 108,966 | (16,359 | ) | 68,154 | 22,819 | 274,605 | 2,275 | 276,880 | |||||||||||||||||||||||
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Assets |
3,099,854 | 6,136,429 | 481,588 | 1,170,618 | 615,405 | 11,503,894 | (56,307 | ) | 11,447,587 | |||||||||||||||||||||||
Long-lived assets |
1,085,389 | 2,000,980 | 106,766 | 301,710 | 127,950 | 3,622,795 | | 3,622,795 |
Explanatory notes:
1. | Major countries or regions in each geographic area: |
North America |
United States, Canada, Mexico | |
Europe |
United Kingdom, Germany, France, Italy, Belgium | |
Asia |
Thailand, Indonesia, China, India, Vietnam | |
Other Regions |
Brazil, Australia |
2. | Sales and revenues between geographic areas are generally made at values that approximate arms-length prices. |
3. | Unallocated corporate assets, included in reconciling items, amounted to JPY 465,864 million as of September 30, 2011 and JPY 228,945 million as of September 30, 2012 respectively, which consist primarily of cash and cash equivalents, available-for-sale securities and held-to-maturity securities held by the Company. Reconciling items also include elimination of transactions between geographic areas. |
4. | Previously, Honda used principally the declining-balance method for calculating the depreciation of property, plant and equipment. Effective April 1, 2012, Honda changed to the straight line method of depreciation. As a result of the change in depreciation method, depreciation expense for three months ended September 30, 2012 decreased by approximately JPY 8,939 million in Japan, JPY 1,188 million in North America, JPY 538 million in Europe and JPY 667 million in Asia, respectively. Depreciation expense for six months ended September 30, 2012 decreased by approximately JPY 16,995 million in Japan, JPY 2,507 million in North America, JPY 795 million in Europe and JPY 1,174 million in Asia, respectively. It resulted in an increase of segment income. For further information, refer to Other Information, 2. Changes in accounting policy, (b) Change in depreciation method. |
5. | For the three months ended September 30, 2012, impact of the floods in Thailand is included in Operating income (loss) of Asia, refer to [7] Other, 3. Impact on the Companys consolidated financial position or results of operations of the flood in Thailand. |
- 28 -
[7] Other
1. Revisions of the prior years Consolidated Statements of Cash Flow
Revisions have been made to adjust overstatements in both acquisitions of finance subsidiaries-receivables and collections of finance subsidiaries-receivables in the consolidated statements of cash flows, that amounted to JPY 93,124 million for the fiscal six months ended September 30, 2011.
The revisions have no impact on net cash used in investing activities.
2. Impairment loss on investments in affiliate
For the six months ended September 30, 2012, Honda recognized impairment loss of JPY 6,525 million, net of tax, on certain investments in affiliates which have quoted market values because of other-than-temporary decline in fair value below their carrying values. The fair values of the investments were based on quoted market price. The impairment loss is included in equity in income of affiliates in the accompanying consolidated statement of income. For the three months ended September 30, 2012, Honda does not recognize impairment loss on investments in affiliates.
3. Impact on the Companys consolidated financial position or results of operations of the floods in Thailand
In October 2011, Thailand suffered from severe floods that caused damage to inventories, and machinery and equipment of certain consolidated subsidiaries and affiliates of the Company. Accordingly, production activities in plant facilities at Honda and its affiliates had been temporarily affected by the floods for the year ended March 31, 2012.
Honda recognized insurance recoveries of JPY 6,271 million which is included in selling, general and administrative expenses in the accompanying consolidated statement of income for the three months ended September 30, 2012. Honda recognizes insurance recoveries in excess of the incurred losses when settlements with insurance companies are reached.
- 29 -
October 29, 2012
To: | Shareholders of Honda Motor Co., Ltd. |
From: | Honda Motor Co., Ltd. |
1-1, Minami-Aoyama 2-chome, |
Minato-ku, Tokyo, 107-8556 |
Takanobu Ito |
President and Representative Director |
Notice Concerning Revision of Forecasts for
Consolidated and Unconsolidated Financial Results of the Fiscal Year Ending March 31, 2013
Honda Motor Co., Ltd. (the Company) revised its forecasts for consolidated and unconsolidated financial results of the fiscal year ending March 31, 2013 that were announced on April 27, 2012.
Particulars
Rivision of Forecasts for Consolidated Financial Results of the Fiscal Year Ending March 31, 2013
(Millions of Yen, except Basic net income attributable to Honda Motor Co., Ltd. per common share) | ||||||||||||||||||||
Net sales and other operating revenue |
Operating income |
Income before income taxes and equity in income of affiliates |
Net income attributable to Honda Motor Co., Ltd. |
Basic
net income attributable to Honda Motor Co., Ltd. per common share (Yen) |
||||||||||||||||
Forecast previously announced on April 27, 2012 (A) |
10,300,000 | 620,000 | 635,000 | 470,000 | 260.78 | |||||||||||||||
Forecast revised on October 29, 2012 (B) |
9,800,000 | 520,000 | 540,000 | 375,000 | 208.07 | |||||||||||||||
Change (B-A) |
-500,000 | -100,000 | -95,000 | -95,000 | | |||||||||||||||
Percentage change (%) |
-4.9 | -16.1 | -15.0 | -20.2 | | |||||||||||||||
(Reference) |
||||||||||||||||||||
Results of the fiscal year ended March 31, 2012 |
7,948,095 | 231,364 | 257,403 | 211,482 | 117.34 |
Reason for Revision of Forecasts
Due mainly to decreased unit sales caused by factors such as changes in the business environment surrounding the Company, and unfavorable foreign currency effects, the Company has revised its forecasts for the consolidated financial results of the fiscal year ending March 31, 2013 which was announced on April 27, 2012.
Rivision of Forecasts for Unconsolidated Financial Results of the Fiscal Year Ending March 31, 2013
(Millions of Yen, except Net income per common share) | ||||||||||||||||||||
Net sales | Operating income |
Ordinary income | Net income | Net income per common share (Yen) |
||||||||||||||||
Forecast previously announced on April 27, 2012 (A) |
3,320,000 | 50,000 | 190,000 | 140,000 | 77.68 | |||||||||||||||
Forecast revised on October 29, 2012 (B) |
3,200,000 | 50,000 | 190,000 | 140,000 | 77.68 | |||||||||||||||
Change (B-A) |
-120,000 | 0 | 0 | 0 | | |||||||||||||||
Percentage change (%) |
-3.6 | 0.0 | 0.0 | 0.0 | | |||||||||||||||
(Reference) |
||||||||||||||||||||
Results of the fiscal year ended March 31, 2012 |
2,740,052 | -136,757 | 40,388 | 46,280 | 25.68 |
Reason for Revision of Forecasts
Due mainly to changes of the business environment surrounding the Company and unfavorable foreign currency effects, the Company has revised its forecast for unconsolidated net sales of the fiscal year ending March 31, 2013 which was announced on April 27, 2012.
* | For more detail, please refer to the Companys investor relations website (URL http://world.honda.com/investors/). |
* | These forecasts for consolidated and uncosolidated financial results of the Company are based on managements 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 foreign exchange rates between the Japanese yen and the U.S. dollar, the Euro and other major currencies, as well as other factors detailed from time to time. |