Form 6-K
Table of Contents

 

 

 

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 2013

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  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):  ¨

 

 

 


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Contents

Exhibit 1:

On October  21, 2013, Wuyang-Honda Motors (Guangzhou) Co., Ltd., a motorcycle production and sales joint venture company of Honda in China, held a ceremony to commemorate the start of construction of a new plant which is scheduled to start operation from the end of 2014, with an annual production capacity of 500,000 units.

Exhibit 2:

On October  30, 2013, Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal second quarter ended September 30, 2013.

Exhibit 3:

Honda Motor Co., Ltd. revised its forecasts for consolidated and unconsolidated financial results of the fiscal year ending March 31, 2014 that were announced on April 26, 2013.


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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/ Kohei Takeuchi

Kohei Takeuchi
Operating Officer and Director
Chief Financial Officer
Honda Motor Co., Ltd.

Date: November 15, 2013


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Wuyang-Honda Motors (Guangzhou) Co., Ltd. Begins Construction of a New Plant

On October 21, 2013, Wuyang-Honda Motors (Guangzhou) Co., Ltd., a motorcycle production and sales joint venture company of Honda in China, held a ceremony to commemorate the start of construction of a new plant which is scheduled to start operation from the end of 2014, with an annual production capacity of 500,000 units.

After opening the new plant, overall annual motorcycle production capacity of Wuyang-Honda Motors (Guangzhou) Co., Ltd. will be increased from the current 1,000,000 units to 1,500,000 units.


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October 30, 2013

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL SECOND QUARTER ENDED SEPTEMBER 30, 2013

Tokyo, October 30, 2013 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal second quarter ended September 30, 2013.

Second Quarter Results

Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal second quarter ended September 30, 2013 totaled JPY 120.3 billion (USD 1,231 million), an increase of 46.4% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the quarter amounted to JPY 66.79 (USD 0.68), an increase of JPY 21.16 (USD 0.22) from JPY 45.63 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 2,890.2 billion (USD 29,567 million), an increase of 27.3% from the same period last year, due primarily to increased revenue in automobile and motorcycle business operations, as well as favorable foreign currency translation effects.

Consolidated operating income for the quarter amounted to JPY 171.4 billion (USD 1,754 million), an increase of 70.0% from the same period last year, due primarily to an increase in sales volume and model mix and favorable foreign currency effects, despite increased SG&A expenses.

Consolidated income before income taxes and equity in income of affiliates for the quarter totaled JPY 165.5 billion (USD 1,694 million), an increase of 55.8% from the same period last year.

Equity in income of affiliates amounted to JPY 31.6 billion (USD 324 million) for the quarter, an increase of 15.2% from the corresponding period last year.

 

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Business Segment

Motorcycle Business

For the three months ended September 30, 2012 and 2013

 

     Unit (Thousands)  
     Honda Group Unit Sales      Consolidated Unit Sales  
     Three months
ended
Sep. 30, 2012
     Three months
ended
Sep. 30, 2013
     Change      %      Three months
ended
Sep. 30, 2012
     Three months
ended
Sep. 30, 2013
     Change      %  

Motorcycle business

     3,806         4,216         410         10.8         2,304         2,585         281         12.2   

Japan

     57         63         6         10.5         57         63         6         10.5   

North America

     60         68         8         13.3         60         68         8         13.3   

Europe

     38         38         0         0.0         38         38         0         0.0   

Asia

     3,162         3,536         374         11.8         1,660         1,905         245         14.8   

Other Regions

     489         511         22         4.5         489         511         22         4.5   

Notes:

 

1. 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.

 

2. Honda Group Unit Sales and Consolidated Unit Sales of Motorcycle business for the three months ended September 30, 2012 is revised.

With respect to Honda’s sales for the fiscal second quarter by business segment, in motorcycle business operations, revenue from sales to external customers increased 35.0%, to JPY 418.0 billion (USD 4,277 million) from the same period last year, due mainly to increased consolidated unit sales and favorable foreign currency translation effects. Operating income totaled JPY 45.5 billion (USD 466 million), an increase of 79.3% from the same period last year, due primarily to an increase in sales volume and model mix and favorable foreign currency effects, despite increased SG&A and R&D expenses.

Automobile Business

For the three months ended September 30, 2012 and 2013

 

     Unit (Thousands)  
     Honda Group Unit Sales      Consolidated Unit Sales  
     Three months
ended
Sep. 30, 2012
     Three months
ended
Sep. 30, 2013
     Change      %      Three months
ended
Sep. 30, 2012
     Three months
ended
Sep. 30, 2013
     Change      %  

Automobile business

     996         1,047         51         5.1         816         869         53         6.5   

Japan

     169         180         11         6.5         168         178         10         6.0   

North America

     404         447         43         10.6         404         447         43         10.6   

Europe

     44         40         - 4         - 9.1         44         40         - 4         - 9.1   

Asia

     301         309         8         2.7         122         133         11         9.0   

Other Regions

     78         71         - 7         - 9.0         78         71         - 7         - 9.0   

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.

In automobile business operations, revenue from sales to external customers increased 26.2%, to JPY 2,229.0 billion (USD 22,803 million) from the same period last year due mainly to increased consolidated unit sales and favorable foreign currency translation effects. Operating income totaled JPY 80.1 billion (USD 820 million), an increase of 115.8% from the same period last year, due primarily to an increase in sales volume and model mix and favorable foreign currency effects, despite increased SG&A expenses.

 

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Financial Services Business

Revenue from customers in the financial services business increased 30.4%, to JPY 170.0 billion (USD 1,739 million) from the same period last year due mainly to an increase in revenue from operating leases and favorable foreign currency translation effects. Operating income increased 21.7% to JPY 46.5 billion (USD 477 million) from the same period last year due mainly to favorable foreign currency effects.

Power Product and Other Businesses

For the three months ended September 30, 2012 and 2013

 

     Unit (Thousands)  
     Honda Group Unit Sales/ Consolidated Unit Sales  
     Three months
ended
Sep. 30, 2012
     Three months
ended
Sep. 30, 2013
     Change      %  

Power product business

     1,288         1,295         7         0.5   

Japan

     88         93         5         5.7   

North America

     436         504         68         15.6   

Europe

     150         156         6         4.0   

Asia

     462         426         - 36         - 7.8   

Other Regions

     152         116         - 36         - 23.7   

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, 2012 and for the three months ended September 30, 2013, 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 increased 12.6%, to JPY 73.1 billion (USD 748 million) from the same period last year, due mainly to favorable foreign currency translation effects. Honda reported an operating loss of JPY 0.8 billion (USD 8 million), a decrease of JPY 0.8 billion (USD 9 million) from the same period last year due mainly to increased SG&A expenses in other businesses.

 

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Geographical Information

With respect to Honda’s sales for the fiscal second quarter by geographic segment, in Japan, revenue from domestic and export sales amounted to JPY 1,014.4 billion (USD 10,378 million), an increase of 9.7% from the same period last year due mainly to increased revenue in automobile and motorcycle business operations. Operating income totaled JPY 49.2 billion (USD 504 million), an increase of 64.0% from the same period last year, due mainly to an increase in sales volume and model mix and favorable foreign currency effects, despite increased SG&A and R&D expenses.

In North America, revenue increased by 39.5%, to JPY 1,471.9 billion (USD 15,058 million) from the same period last year due mainly to increased revenue in automobile business operations and favorable foreign currency translation effects. Operating income totaled JPY 46.0 billion (USD 471 million), an increase of 72.1% from the same period last year due mainly to an increase in sales volume and model mix and favorable foreign currency effects, despite increased SG&A expenses.

In Europe, revenue increased by 20.7%, to JPY 174.4 billion (USD 1,785 million) from the same period last year due to favorable foreign currency translation effects, despite decreased revenue in automobile business operations. Honda reported an operating loss of JPY 13.5 billion (USD 139 million), a decline of JPY 4.8 billion (USD 50 million) from the same period last year due mainly to a decrease in sales volume and model mix, despite decreased SG&A expenses and favorable foreign currency effects.

In Asia, revenue increased by 28.6%, to JPY 693.8 billion (USD 7,098 million) from the same period last year mainly due to increased revenue in motorcycle business operations and favorable foreign currency translation effects. Operating income increased by 64.9%, to JPY 60.0 billion (USD 614 million) from the same period last year due mainly to an increase in sales volume and model mix as well as favorable foreign currency effects, despite increased SG&A expenses.

In Other regions, which includes South America, the Middle East, Africa and Oceania, revenue increased by 22.1%, to JPY 280.4 billion (USD 2,869 million) from the same period last year mainly due to increased revenue in motorcycle business operations and favorable foreign currency translation effects. Operating income totaled JPY 18.6 billion (USD 191 million), an increase of 76.9% from the same period last year mainly due to an increase in sales volume and model mix, despite increased SG&A expenses.

Explanatory note:

United States dollar amounts have been translated from yen solely for the convenience of the reader at the rate of JPY 97.75=USD 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, 2013.

 

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First Half Year Results

Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal half year ended September 30, 2013 totaled JPY 242.8 billion, an increase of 13.5% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the fiscal first half year amounted to JPY 134.75, an increase of JPY 16.04 from JPY 118.71 for the same period last year.

Consolidated net sales and other operating revenue for the fiscal half year amounted to JPY 5,724.3 billion, an increase of 21.6% from the same period last year, due primarily to increased revenue in automobile and motorcycle business operations as well as favorable foreign currency translation effects.

Consolidated operating income for the fiscal first half year amounted to JPY 356.4 billion, an increase of 28.7% from the same period last year, due primarily to favorable foreign currency effects, despite increased SG&A and R&D expenses.

Consolidated income before income taxes and equity in income of affiliates for the fiscal first half year totaled JPY 337.6 billion, an increase of 12.2% from the same period last year.

Equity in income of affiliates amounted to JPY 63.4 billion for the fiscal first half year, an increase of 31.6% from the same period last year.

 

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Business Segment

Motorcycle Business

For the six months ended September 30, 2012 and 2013

 

     Unit (Thousands)  
     Honda Group Unit Sales      Consolidated Unit Sales  
     Six months
ended
Sep. 30, 2012
     Six months
ended
Sep. 30, 2013
     Change      %      Six months
ended
Sep. 30, 2012
     Six months
ended
Sep. 30, 2013
     Change      %  

Motorcycle business

     7,717         8,270         553         7.2         4,670         4,956         286         6.1   

Japan

     116         117         1         0.9         116         117         1         0.9   

North America

     119         130         11         9.2         119         130         11         9.2   

Europe

     98         90         - 8         - 8.2         98         90         - 8         - 8.2   

Asia

     6,447         7,015         568         8.8         3,400         3,701         301         8.9   

Other Regions

     937         918         - 19         - 2.0         937         918         - 19         - 2.0   

Notes:

 

1. 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.

 

2. Honda Group Unit Sales and Consolidated Unit Sales of Motorcycle business for the six months ended September 30, 2012 is revised.

With respect to Honda’s sales for the fiscal first half year by business segment, in motorcycle business operations, revenue from sales to external customers increased 24.2%, to JPY 814.9 billion from the same period last year, due mainly to increased consolidated unit sales and favorable foreign currency translation effects. Operating income totaled JPY 88.1 billion, an increase of 41.7% from the same period last year, due primarily to an increase in sales volume and model mix and favorable foreign currency effects, despite increased SG&A and R&D expenses.

Automobile Business

For the six months ended September 30, 2012 and 2013

 

     Unit (Thousands)  
     Honda Group Unit Sales      Consolidated Unit Sales  
     Six months
ended
Sep. 30, 2012
     Six months
ended
Sep. 30, 2013
     Change      %      Six months
ended
Sep. 30, 2012
     Six months
ended
Sep. 30, 2013
     Change      %  

Automobile business

     1,995         2,046         51         2.6         1,665         1,727         62         3.7   

Japan

     354         320         - 34         - 9.6         351         317         - 34         - 9.7   

North America

     854         906         52         6.1         854         906         52         6.1   

Europe

     83         80         - 3         - 3.6         83         80         - 3         - 3.6   

Asia

     563         594         31         5.5         236         278         42         17.8   

Other Regions

     141         146         5         3.5         141         146         5         3.5   

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.

In automobile business operations, revenue from sales to external customers increased 21.0%, to JPY 4,425.5 billion from the same period last year due mainly to favorable foreign currency translation effects. Operating income totaled JPY 176.5 billion, an increase of 28.1% from the same period last year, due primarily to favorable foreign currency effects, despite a decrease in sales volume and model mix as well as increased SG&A expenses.

 

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Financial Services Business

Revenue from customers in the financial services business increased 28.2%, to JPY 335.4 billion from the same period last year due mainly to increase in revenue from operating leases and favorable foreign currency translation effects. Operating income increased 15.3% to JPY 91.2 billion from the same period last year due mainly to favorable foreign currency effects, despite an increase in SG&A expenses.

Power Product and Other Businesses

For the six months ended September 30, 2012 and 2013

 

     Unit (Thousands)  
     Honda Group Unit Sales/Consolidated Unit Sales  
     Six months
ended
Sep. 30, 2012
     Six months
ended
Sep. 30, 2013
     Change      %  

Power product business

     2,913         2,884         - 29         - 1.0   

Japan

     170         156         - 14         - 8.2   

North America

     1,194         1,332         138         11.6   

Europe

     386         393         7         1.8   

Asia

     883         790         - 93         - 10.5   

Other Regions

     280         213         - 67         - 23.9   

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. In power product business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales for the six months ended September 30, 2012 and for the six months ended September 30, 2013, 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 increased 12.0%, to JPY 148.3 billion from the same period last year, due mainly to favorable foreign currency translation effects. Operating income totaled JPY 0.5 billion, an increase of JPY 2.7 billion from the same period last year, due mainly to decreased SG&A expenses and favorable foreign currency effects, despite a decrease in sales volume and model mix in power product business operations.

 

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Geographical Information

With respect to Honda’s sales for the fiscal first half year by geographic segment, in Japan, revenue from domestic and export sales amounted to JPY 1,990.3 billion, an increase of 3.0% from the same period last year due mainly to increased revenue in automobile and motorcycle business operations. Operating income totaled JPY 111.4 billion, an increase of 22.5% from the same period last year due mainly to favorable foreign currency effects, despite increased R&D expenses and SG&A expenses.

In North America, revenue increased by 31.0%, to JPY 2,973.2 billion from the same period last year due mainly to increased revenue in automobile business operations and financial services business, as well as favorable foreign currency translation effects. Operating income totaled JPY 117.8 billion, an increase of 8.2% from the same period last year due mainly to an increase in sales volume and model mix, and favorable foreign currency effects, despite increased SG&A expenses.

In Europe, revenue increased by 19.8%, to JPY 350.4 billion from the same period last year mainly due to favorable foreign currency translation effects, despite decreased revenue in motorcycle and automobile business operations. Honda reported an operating loss of JPY 23.3 billion, a decline of JPY 6.9 billion from the same period last year mainly due to a decrease in sales volume and model mix, despite decreased SG&A expenses and favorable foreign currency effects.

In Asia, revenue increased by 33.1%, to JPY 1,400.6 billion from the same period last year mainly due to increased revenue in automobile and motorcycle business operations as well as favorable foreign currency translation effects. Operating income increased by 66.9%, to JPY 113.7 billion from the same period last year due mainly to an increase in sales volume and model mix as well as favorable foreign currency effects, despite increased SG&A expenses.

In Other regions, which includes South America, the Middle East, Africa and Oceania, revenue increased by 15.8%, to JPY 521.1 billion from the same period last year mainly due to increased revenue in automobile and motorcycle business operations as well as favorable foreign currency translation effects. Operating income totaled JPY 24.0 billion, an increase of 5.5% from the same period last year mainly due to an increase in sales volume and model mix, despite increased SG&A expenses.

 

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Consolidated Statements of Balance Sheets for the Fiscal First Half Ended September 30, 2013

Total assets increased by JPY 872.8 billion, to JPY 14,508.1 billion from March 31, 2013, mainly due to increases in Finance subsidiaries’ long-term receivables and Property, plant and equipment, property on operating leases as well as foreign currency translation effects, despite a decrease in cash and cash equivalents. Total liabilities increased by JPY 425.0 billion, to JPY 8,854.9 billion from March 31, 2013, mainly due to an increase in long-term debt and foreign currency translation effects. Total equity increased by JPY 447.8 billion, to JPY 5,653.2 billion from March 31, 2013 due mainly to additional net income and foreign currency translation effects.

 

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Consolidated Statements of Cash Flow for the Fiscal First Half Ended September 30, 2013

Consolidated cash and cash equivalents on September 30, 2013 decreased by JPY 73.8 billion from March 31, 2013, to JPY 1,132.2 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 671.5 billion for the fiscal first half ended September 30, 2013. Cash inflows from operating activities increased by JPY 348.2 billion compared with the same period of the previous fiscal year due mainly to an increase in cash received from customers as a result of increased unit sales of automobiles, despite increased payments for parts and raw materials.

Cash flow from investing activities

Net cash used in investing activities amounted to JPY 989.4 billion. Cash outflows from investing activities increased by JPY 438.3 billion compared with the same period of the previous fiscal year, due mainly to an increase in acquisitions of finance subsidiaries-receivables and purchases of operating lease assets, despite an increase in collections of finance subsidiaries-receivables.

Cash flow from financing activities

Net cash provided by financing activities amounted to JPY 209.6 billion. Cash inflows from financing activities increased by JPY 200.4 billion compared with the same period of the previous fiscal year, due mainly to an increase in proceeds from debt, despite increase in cash outflow due to an increase in dividends paid.

 

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Forecasts for the Fiscal Year Ending March 31, 2014

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2014, Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2014

 

     Yen (billions)      Changes from FY 2013  

Net sales and other operating revenue

     12,100.0         + 22.5

Operating income

     780.0         + 43.2

Income before income taxes and equity in income of affiliates

     765.0         + 56.5

Net income attributable to Honda Motor Co., Ltd.

     580.0         + 58.0
     Yen         

Basic net income attributable to Honda Motor Co., Ltd. per common share

     321.81      

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 97 and JPY 127, respectively, for the full year ending March 31, 2014.

The reasons for the increases or decreases in the forecasts of the operating income, and income before income taxes and equity in income of affiliates for the fiscal year ending March 31, 2014 from the previous year are as follows.

 

     Yen (billions)  

Revenue, model mix, etc.

     143.6   

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

     20.0   

SG&A expenses

     - 129.0   

R&D expenses

     - 47.5   

Currency effect

     248.0   
  

 

 

 

Operating income compared with fiscal year 2013

     235.1   
  

 

 

 

Fair value of derivative instruments

     72.0   

Others

     - 31.1   
  

 

 

 

Income before income taxes and equity in income of affiliates compared with fiscal year 2013

     276.1   
  

 

 

 

 

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Dividend per Share of Common Stock

The Board of Directors of Honda Motor Co., Ltd., at its meeting held on October 30, 2013, resolved to make the quarterly dividend JPY 20 per share of common stock, the record date of which is September 30, 2013. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2014, is JPY 80 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 Honda’s actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Honda’s 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.

 

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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 three months ended September 30, 2013. 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 February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. This amendment requires reporting entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component, and to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income.

Honda adopted ASU 2013-02, effective April 1, 2013. This adoption has no impact on the Honda’s financial position or results of operations.

(b) Changing in Fiscal Year-end of a Subsidiary

Effective April 1, 2013, a subsidiary of the Company changed its fiscal year-end from December 31 to March 31. As a result, the Company eliminated the previously existing three month differences between the reporting periods of the Company and the subsidiary in the consolidated financial statements. The elimination of the lag period represents a change in accounting principle and has been reported by retrospective application. The impacts on the retained earnings and noncontrolling interests as of April 1, 2012 are JPY 6,023 million and JPY 1,658 million, respectively. Honda believes the effect of the retrospective application is not material to the Company’s consolidated financial statements as of and for the three months and the six months ended September 30, 2012, and therefore the Company’s consolidated financial statements have not been retrospectively adjusted, except for the adjustment to retained earnings and noncontrolling interests as of April 1, 2012.

 

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Consolidated Financial Summary

For the three months and six months ended September 30, 2012 and 2013

Financial Highlights

 

     Yen (millions)  
     Three months
ended
Sep. 30, 2012
Unaudited
     Three months
ended
Sep. 30, 2013
Unaudited
     Six months
ended
Sep. 30, 2012
unaudited
     Six months
ended
Sep. 30, 2013
Unaudited
 

Net sales and other operating revenue

     2,271,286         2,890,221         4,707,195         5,724,316   

Operating income

     100,867         171,451         276,880         356,414   

Income before income taxes and equity in income of affiliates

     106,260         165,587         301,040         337,622   

Net income attributable to Honda Motor Co., Ltd.

     82,233         120,368         213,956         242,867   
     Yen  

Basic net income attributable to Honda Motor Co., Ltd per common share

     45.63         66.79         118.71         134.75   
     U.S. Dollar (millions)  
            Three months
ended
Sep. 30, 2012
Unaudited
            Six months
ended
Sep. 30, 2012
Unaudited
 

Net sales and other operating revenue

        29,567            58,561   

Operating income

        1,754            3,646   

Income before income taxes and equity in income of affiliates

        1,694            3,454   

Net income attributable to Honda Motor Co., Ltd.

        1,231            2,485   
     U.S. Dollar  

Basic net income attributable to Honda Motor Co., Ltd per common share

        0.68            1.38   

 

- 14 -


Table of Contents

[1] Consolidated Balance Sheets

 

     Yen (millions)  
     Mar. 31, 2013
audited
     Sep. 30, 2013
unaudited
 

Assets

     

Current assets:

     

Cash and cash equivalents

     1,206,128         1,132,283   

Trade accounts and notes receivable

     1,005,981         941,229   

Finance subsidiaries-receivables, net

     1,243,002         1,393,245   

Inventories

     1,215,421         1,216,975   

Deferred income taxes

     234,075         230,522   

Other current assets

     418,446         409,929   
  

 

 

    

 

 

 

Total current assets

     5,323,053         5,324,183   
  

 

 

    

 

 

 

Finance subsidiaries-receivables, net

     2,788,135         3,147,146   

Investments and advances:

     

Investments in and advances to affiliates

     459,110         568,181   

Other, including marketable equity securities

     209,680         262,669   
  

 

 

    

 

 

 

Total investments and advances

     668,790         830,850   
  

 

 

    

 

 

 

Property on operating leases:

     

Vehicles

     2,243,424         2,461,216   

Less accumulated depreciation

     400,292         425,431   
  

 

 

    

 

 

 

Net property on operating leases

     1,843,132         2,035,785   
  

 

 

    

 

 

 

Property, plant and equipment, at cost:

     

Land

     515,661         508,733   

Buildings

     1,686,638         1,767,957   

Machinery and equipment

     3,832,090         4,110,591   

Construction in progress

     288,073         302,516   
  

 

 

    

 

 

 
     6,322,462         6,689,797   

Less accumulated depreciation and amortization

     3,922,932         4,129,063   
  

 

 

    

 

 

 

Net property, plant and equipment

     2,399,530         2,560,734   
  

 

 

    

 

 

 

Other assets

     612,717         609,496   
  

 

 

    

 

 

 

Total assets

     13,635,357         14,508,194   
  

 

 

    

 

 

 

 

- 15 -


Table of Contents

[1] Consolidated Balance Sheets – continued

 

     Yen (millions)  
     Mar. 31, 2013
audited
    Sep. 30, 2013
unaudited
 

Liabilities and Equity

    

Current liabilities:

    

Short-term debt

     1,238,297        1,456,324   

Current portion of long-term debt

     945,046        915,504   

Trade payables:

    

Notes

     31,354        24,790   

Accounts

     956,660        934,347   

Accrued expenses

     593,570        556,681   

Income taxes payable

     48,454        36,778   

Other current liabilities

     275,623        291,470   
  

 

 

   

 

 

 

Total current liabilities

     4,089,004        4,215,894   
  

 

 

   

 

 

 

Long-term debt, excluding current portion

     2,710,845        3,020,453   

Other liabilities

     1,630,085        1,618,611   
  

 

 

   

 

 

 

Total liabilities

     8,429,934        8,854,958   
  

 

 

   

 

 

 

Equity:

    

Honda Motor Co., Ltd. shareholders’ equity:

    

Common stock, authorized 7,086,000,000 shares; issued 1,811,428,430 shares on Mar. 31, 2013 and 1,811,428,430 shares on Sep. 30, 2013

     86,067        86,067   

Capital surplus

     171,117        171,117   

Legal reserves

     47,583        48,998   

Retained earnings

     6,001,649        6,172,811   

Accumulated other comprehensive income (loss), net

     (1,236,792     (976,052

Treasury stock, at cost 9,131,140 shares on Mar. 31, 2013 and 9,133,532 shares on Sep. 30, 2013

     (26,124     (26,134
  

 

 

   

 

 

 

Total Honda Motor Co., Ltd. shareholders’ equity

     5,043,500        5,476,807   
  

 

 

   

 

 

 

Noncontrolling interests

     161,923        176,429   
  

 

 

   

 

 

 

Total equity

     5,205,423        5,653,236   
  

 

 

   

 

 

 

Commitments and contingent liabilities

    
  

 

 

   

 

 

 

Total liabilities and equity

     13,635,357        14,508,194   
  

 

 

   

 

 

 

 

- 16 -


Table of Contents

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

Consolidated Statements of Income

For the three months ended September 30, 2012 and 2013

 

     Yen (millions)  
     Three months
ended
Sep. 30, 2012
unaudited
    Three months
ended
Sep. 30, 2013
unaudited
 

Net sales and other operating revenue

     2,271,286        2,890,221   

Operating costs and expenses:

    

Cost of sales

     1,702,835        2,150,812   

Selling, general and administrative

     327,472        416,863   

Research and development

     140,112        151,095   
  

 

 

   

 

 

 
     2,170,419        2,718,770   
  

 

 

   

 

 

 

Operating income

     100,867        171,451   

Other income (expenses):

    

Interest income

     6,661        5,928   

Interest expense

     (3,115     (2,838

Other, net

     1,847        (8,954
  

 

 

   

 

 

 
     5,393        (5,864
  

 

 

   

 

 

 

Income before income taxes and equity in income of affiliates

     106,260        165,587   

Income tax expense:

    

Current

     37,915        59,142   

Deferred

     6,898        10,288   
  

 

 

   

 

 

 
     44,813        69,430   
  

 

 

   

 

 

 

Income before equity in income of affiliates

     61,447        96,157   

Equity in income of affiliates

     27,497        31,686   
  

 

 

   

 

 

 

Net income

     88,944        127,843   

Less: Net income attributable to noncontrolling interests

     6,711        7,475   
  

 

 

   

 

 

 

Net income attributable to Honda Motor Co., Ltd.

     82,233        120,368   
  

 

 

   

 

 

 
     Yen  

Basic net income attributable to Honda Motor Co., Ltd. per common share

     45.63        66.79   

 

- 17 -


Table of Contents

Consolidated Statements of Comprehensive Income

For the three months ended September 30, 2012 and 2013

 

     Yen (millions)  
     Three months
ended
Sep. 30, 2012
unaudited
    Three months
ended
Sep. 30, 2013
unaudited
 

Net income

     88,944        127,843   

Other comprehensive income (loss), net of tax:

    

Adjustments from foreign currency translation

     (101,851     (23,796

Unrealized gains (losses) on available-for-sale securities, net

     (2,420     9,756   

Unrealized gains (losses) on derivative instruments,

     210        (241

Pension and other postretirement benefits adjustments

     1,903        78,709   
  

 

 

   

 

 

 

Other comprehensive income (loss), net of tax

     (102,158     64,428   
  

 

 

   

 

 

 

Comprehensive income (loss)

     (13,214     192,271   

Less: Comprehensive income attributable to noncontrolling interests

     4,911        4,164   
  

 

 

   

 

 

 

Comprehensive income (loss) attributable to Honda Motor Co., Ltd.

     (18,125     188,107   
  

 

 

   

 

 

 

 

- 18 -


Table of Contents

Consolidated Statements of Income

For the six months ended September 30, 2012 and 2013

 

     Yen (millions)  
     Six months ended
Sep. 30, 2012
unaudited
    Six months ended
Sep. 30, 2013
unaudited
 

Net sales and other operating revenue

     4,707,195        5,724,316   

Operating costs and expenses:

    

Cost of sales

     3,494,049        4,275,221   

Selling, general and administrative

     670,155        799,924   

Research and development

     266,111        292,757   
  

 

 

   

 

 

 
     4,430,315        5,367,902   
  

 

 

   

 

 

 

Operating income

     276,880        356,414   

Other income (expenses):

    

Interest income

     14,360        11,920   

Interest expense

     (6,131     (5,812

Other, net

     15,931        (24,900
  

 

 

   

 

 

 
     24,160        (18,792
  

 

 

   

 

 

 

Income before income taxes and equity in income of affiliates

     301,040        337,622   

Income tax expense:

    

Current

     73,786        103,008   

Deferred

     48,860        37,261   
  

 

 

   

 

 

 
     122,646        140,269   
  

 

 

   

 

 

 

Income before equity in income of affiliates

     178,394        197,353   

Equity in income of affiliates

     48,229        63,453   
  

 

 

   

 

 

 

Net income

     226,623        260,806   

Less: Net income attributable to noncontrolling interests

     12,667        17,939   
  

 

 

   

 

 

 

Net income attributable to Honda Motor Co., Ltd.

     213,956        242,867   
  

 

 

   

 

 

 
     Yen  

Basic net income attributable to Honda Motor Co., Ltd. per common share

     118.71        134.75   

 

- 19 -


Table of Contents

Consolidated Statements of Comprehensive Income

For the six months ended September 30, 2012 and 2013

 

     Yen (millions)  
     Six months
ended
Sep. 30, 2012
unaudited
    Six months
ended
Sep. 30, 2013
unaudited
 

Net income

     226,623        260,806   

Other comprehensive income (loss), net of tax:

    

Adjustments from foreign currency translation

     (152,299     165,750   

Unrealized gains (losses) on available-for-sale securities, net

     (12,228     18,450   

Unrealized gains (losses) on derivative instruments,

     349        346   

Pension and other postretirement benefits adjustments

     4,266        81,394   
  

 

 

   

 

 

 

Other comprehensive income (loss), net of tax

     (159,912     265,940   
  

 

 

   

 

 

 

Comprehensive income (loss)

     66,711        526,746   

Less: Comprehensive income attributable to noncontrolling interests

     10,824        23,139   
  

 

 

   

 

 

 

Comprehensive income (loss) attributable to Honda Motor Co., Ltd.

     55,887        503,607   
  

 

 

   

 

 

 

 

- 20 -


Table of Contents

[3] Consolidated Statements of Cash Flows

 

     Yen (millions)  
     Six months
ended
Sep. 30, 2012
unaudited
    Six months
ended
Sep. 30, 2013
unaudited
 

Cash flows from operating activities:

    

Net income

     226,623        260,806   

Adjustments to reconcile net income to net cash provided by operating activities:

    

Depreciation excluding property on operating leases

     155,614        216,736   

Depreciation of property on operating leases

     118,213        164,334   

Deferred income taxes

     48,860        37,261   

Equity in income of affiliates

     (48,229     (63,453

Dividends from affiliates

     31,365        8,060   

Provision for credit and lease residual losses on finance subsidiaries-receivables

     2,664        10,341   

Impairment loss on property on operating leases

     2,208        1,322   

Loss (gain) on derivative instruments, net

     (24,656     (39,142

Decrease (increase) in assets:

    

Trade accounts and notes receivable

     (8,278     99,663   

Inventories

     (91,728     39,676   

Other current assets

     53,338        22,522   

Other assets

     (18,574     (7,883

Increase (decrease) in liabilities:

    

Trade accounts and notes payable

     (120,313     (1,393

Accrued expenses

     24,494        (16,923

Income taxes payable

     5,407        (15,829

Other current liabilities

     (387     27,696   

Other liabilities

     1,290        (6,138

Other, net

     (34,640     (66,154
  

 

 

   

 

 

 

Net cash provided by operating activities

     323,271        671,502   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Increase in investments and advances

     (10,928     (23,411

Decrease in investments and advances

     9,572        25,214   

Payments for purchases of available-for-sale securities

     —          (27,590

Proceeds from sales of available-for-sale securities

     —          4,085   

Payments for purchases of held-to-maturity securities

     (1,118     (58

Proceeds from redemptions of held-to-maturity securities

     6,435        1,753   

Capital expenditures

     (282,332     (355,990

Proceeds from sales of property, plant and equipment

     19,932        14,588   

Proceeds from insurance recoveries for damaged property, plant and equipment

     2,917        6,800   

Acquisitions of finance subsidiaries-receivables

     (992,380     (1,582,865

Collections of finance subsidiaries-receivables

     908,938        1,219,326   

Purchases of operating lease assets

     (416,447     (582,206

Proceeds from sales of operating lease assets

     204,356        310,900   
  

 

 

   

 

 

 

Net cash used in investing activities

     (551,055     (989,454
  

 

 

   

 

 

 

 

- 21 -


Table of Contents

[3] Consolidated Statements of Cash Flows – continued

 

     Yen (millions)  
     Six months
ended
Sep. 30, 2012
unaudited
    Six months
ended
Sep. 30, 2013
unaudited
 

Cash flows from financing activities:

    

Proceeds from short-term debt

     3,374,385        4,307,274   

Repayment of short-term debt

     (3,355,219     (4,133,849

Proceeds from long-term debt

     592,080        821,199   

Repayment of long-term debt

     (520,564     (688,583

Dividends paid

     (61,278     (70,289

Dividends paid to noncontrolling interests

     (5,060     (8,467

Sales (purchases) of treasury stock, net

     (2     (10

Other, net

     (15,078     (17,581
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     9,264        209,694   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     (47,284     34,413   
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (265,804     (73,845
  

 

 

   

 

 

 

Cash and cash equivalents at beginning of the year

     1,247,113        1,206,128   
  

 

 

   

 

 

 

Cash and cash equivalents at end of the period

     981,309        1,132,283   
  

 

 

   

 

 

 

 

- 22 -


Table of Contents

[4] Assumptions for Going Concern

None

[5] Significant changes in Honda Motor Co., Ltd. shareholders’ equity

None

 

- 23 -


Table of Contents

[6] Segment Information

Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Power product & other businesses, which are based on Honda’s organizational structure and characteristics of products and services. Operating segments are defined as components of Honda’s about 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 Honda’s consolidated financial statements.

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

 

Segment

 

Principal products and services

 

Functions

Motorcycle business

  Motorcycles, all-terrain vehicles (ATVs) 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

1. Segment information based on products and services

(A) As of and 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   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

As of and for the three months ended September 30, 2013

  

 
     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

     418,089         2,229,004         170,016         73,112        2,890,221         —          2,890,221   

Intersegment

     —           4,186         2,567         2,839        9,592         (9,592     —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     418,089         2,233,190         172,583         75,951        2,899,813         (9,592     2,890,221   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment income (loss)

     45,542         80,153         46,585         (829     171,451         —          171,451   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

- 24 -


Table of Contents

(B) 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

     904,173         4,952,109         5,577,763         284,572        11,718,617         (264,190     11,454,427   

Depreciation and amortization

     17,701         133,051         118,872         4,203        273,827         —          273,827   

Capital expenditures

     26,653         230,473         417,058         6,780        680,964         —          680,964   

 

As of and for the six months ended September 30, 2013

  

 
     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

     814,959         4,425,595         335,412         148,350        5,724,316         —          5,724,316   

Intersegment

     —           8,590         5,159         5,557        19,306         (19,306     —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     814,959         4,434,185         340,571         153,907        5,743,622         (19,306     5,724,316   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment income (loss)

     88,124         176,530         91,228         532        356,414         —          356,414   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Assets

     1,220,606         5,906,273         7,404,632         334,588        14,866,099         (357,905     14,508,194   

Depreciation and amortization

     22,110         188,703         165,122         5,135        381,070         —          381,070   

Capital expenditures

     26,147         294,398         584,140         6,632        911,317         —          911,317   

Explanatory notes:

 

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

 

2. Unallocated corporate assets, included in reconciling items, amounted to JPY 228,945 million as of September 30, 2012 and JPY 300,860 million as of September 30, 2013 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 118,213 million for the six months ended September 30, 2012 and JPY 164,334 million for the six months ended September 30, 2013, respectively, of depreciation of property on operating leases.

 

4. Capital expenditure of Financial Services Business includes JPY 416,447 million for the six months ended September 30, 2012 and JPY582,206 million for the six months ended September 30, 2013 respectively, of purchase of operating lease assets.

 

5. The amounts of Assets and Depreciation and amortization for the six months ended September 30, 2012 have been corrected from the amounts previously disclosed.

 

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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) As of and 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     —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    925,086        1,054,762        144,571        539,461        229,672        2,893,552        (622,266     2,271,286   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

    30,047        26,749        (8,725     36,404        10,542        95,017        5,850        100,867   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

As of and for the three months ended September 30, 2013

 

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

Net sales and other operating revenue:

               

External customers

    505,002        1,384,716        154,810        568,889        276,804        2,890,221        —          2,890,221   

Transfers between geographic areas

    509,468        87,197        19,665        124,989        3,645        744,964        (744,964     —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    1,014,470        1,471,913        174,475        693,878        280,449        3,635,185        (744,964     2,890,221   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

    49,281        46,029        (13,574     60,020        18,651        160,407        11,044        171,451   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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(B) 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     —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    1,931,744        2,269,473        292,450        1,052,271        450,014        5,995,952        (1,288,757     4,707,195   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

    91,025        108,966        (16,359     68,154        22,819        274,605        2,275        276,880   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Assets

    3,106,694        6,136,429        481,588        1,170,618        615,405        11,510,734        (56,307     11,454,427   

Long-lived assets

    1,085,389        2,000,980        106,766        301,710        127,950        3,622,795        —          3,622,795   

As of and for the six months ended September 30, 2013

 

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

Net sales and other operating revenue:

               

External customers

    938,540        2,790,218        313,679        1,167,258        514,621        5,724,316        —          5,724,316   

Transfers between geographic areas

    1,051,814        183,003        36,778        233,363        6,547        1,511,505        (1,511,505     —     
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    1,990,354        2,973,221        350,457        1,400,621        521,168        7,235,821        (1,511,505     5,724,316   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating income (loss)

    111,468        117,887        (23,314     113,775        24,066        343,882        12,532        356,414   
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Assets

    3,234,347        8,239,650        619,640        1,751,665        747,168        14,592,470        (84,276     14,508,194   

Long-lived assets

    1,210,069        2,735,896        128,953        489,710        154,364        4,718,992        —          4,718,992   

Explanatory notes:

 

1. Major countries or regions in each geographic area:

 

North America

   United States, Canada, Mexico

Europe

   United Kingdom, Germany, France, Belgium, Russia

Asia

   Thailand, Indonesia, China, India, Vietnam

Other Regions

   Brazil, Australia

 

2. Sales and 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 228,945 million as of September 30, 2012 and JPY 300,860 million as of September 30, 2013 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. The amounts of Assets for the six months ended September 30, 2012 have been corrected from the amounts previously disclosed.

 

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Table of Contents

[7] Other

1. Impairment loss on investments in affiliates

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, for the six months ended September 30, 2013 and for the three months ended September 30, 2013, Honda did not recognize any significant impairment losses.

2. Immaterial corrections of the prior year’s Consolidated Statements of Cash Flows

Adjustments have been made to correct previous immaterial understatements in both depreciation excluding property on operating leases, which is included in cash flows from operating activities, and payments of other debt, which is included in other, net in cash flows from financing activities, in the consolidated statements of cash flows for the six months ended September 30, 2012. These adjustments increased previously reported net cash provided by operating activities and increased previously reported net cash used in financing activities by JPY 13,464 million for the six months ended September 30, 2012.

 

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Table of Contents

[Translation]

October 30, 2013

 

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, 2014

Honda Motor Co., Ltd. (the “Company”) revised its forecasts for consolidated and unconsolidated financial results of the fiscal year ending March 31, 2014 that were announced on April 26, 2013.

Particulars

Revision of Forecasts for Consolidated Financial Results of the Fiscal Year Ending March 31, 2014

 

     (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 26, 2013 (A)

     12,100,000         780,000         780,000         580,000         321.81   

Forecast revised on October 30, 2013 (B)

     12,100,000         780,000         765,000         580,000         321.81   

Change (B-A)

     —           —           - 15,000         —           —     

Percentage change (%)

     —           —           - 1.9         —           —     

(Reference)

Results of the fiscal year ended March 31, 2013

     9,877,947         544,810         488,891         367,149         203.71   

Reason for Revision of Forecasts

Due mainly to losses on the valuation of derivative instruments, the Company has downwardly revised its forecasts for the income before income taxes and equity in income of affiliates of the fiscal year ending March 31, 2014 which was announced on April 26, 2013. However, due mainly to changes in the business environment surrounding the Company in some Asian countries, the Company expects an increase in equity income of affiliates, and thus the Company has not revised its forecasts for the net income attributable to Honda Motor Co., Ltd. of the fiscal year ending March 31, 2014 which was announced on April 26, 2013.


Table of Contents

Revision of Forecasts for Unconsolidated Financial Results of the Fiscal Year Ending March 31, 2014

 

     (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 26, 2013 (A)

     3,630,000         170,000         360,000         260,000         144.26   

Forecast revised on October 30, 2013 (B)

     3,580,000         150,000         375,000         280,000         155.36   

Change (B-A)

     - 50,000         - 20,000         15,000         20,000         —     

Percentage change (%)

     - 1.4         - 11.8         4.2         7.7         —     

(Reference)

Results of the fiscal year ended March 31, 2013

     3,244,070         103,932         193,825         154,714         85.84   

Reason for Revision of Forecasts

Due mainly to decreased export unit sales caused by changes in the business environment surrounding the Company, the Company has downwardly revised its forecast for unconsolidated net sales and operating income of the fiscal year ending March 31, 2014 which was announced on April 26, 2013. However, due mainly to the increase in dividend income from affiliated companies, the Company has upwardly revised its forecast for ordinary income and net income of the fiscal year ending March 31, 2014 which was announced on April 26, 2013.

 

* For more details, please refer to the Company’s investor relations website (URL http://world.honda.com/investors/).

 

* These forecasts for consolidated and unconsolidated financial results of the Company 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 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.