Form 6-K
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No.1-7628

 

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF JANUARY 2014

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:

KARAWANG, Indonesia, January  15, 2014 — Honda Prospect Motor officially opens its new second factory located in Karawang, West Java, Indonesia, with a grand opening ceremony on January 15, 2014.

Exhibit 2:

Malacca, Malaysia, January  16, 2014 — Honda Malaysia Sdn Bhd reinforced its strong commitment towards its business in Malaysia with the opening of the No.2 Line at its Pegoh Plant in Alor Gajah, Malacca, 11 years after the No.1 Line was opened in January 2003.

Exhibit 3:

On January 31, 2014, Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal third quarter and the fiscal nine-month period ended December 31, 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: February 10, 2014


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Honda Prospect Motor Opens Second Factory in Indonesia

KARAWANG, Indonesia, January 15, 2014 — Honda Prospect Motor officially opens its new second factory located in Karawang, West Java, Indonesia, with a grand opening ceremony on January 15, 2014.

For details, please refer to the website of Honda Motor Co., Ltd

http://world.honda.com/news/2014/c140115Second-Factory-Indonesia/index.html


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Honda Expands Factory in Malaysia with Opening of No.2 Line in Malacca

Malacca, Malaysia, January 16, 2014 — Honda Malaysia Sdn Bhd reinforced its strong commitment towards its business in Malaysia with the opening of the No.2 Line at its Pegoh Plant in Alor Gajah, Malacca, 11 years after the No.1 Line was opened in January 2003.

For details, please refer to the website of Honda Motor Co., Ltd

http://world.honda.com/news/2014/c140116Expands-Factory-Malaysia/index.html


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January 31, 2014

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL THIRD QUARTER AND

THE FISCAL NINE-MONTH PERIOD ENDED DECEMBER 31, 2013

Tokyo, January 31, 2014 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal third quarter and the fiscal nine-month period ended December 31, 2013.

Third Quarter Results

Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal third quarter ended December 31, 2013 totaled JPY 160.7 billion (USD 1,525 million), an increase of 107.6% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the quarter amounted to JPY 89.18 (USD 0.85), an increase of JPY 46.21 (USD 0.44) from JPY 42.97 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 3,020.8 billion (USD 28,664 million), an increase of 24.5% 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 228.5 billion (USD 2,169 million), an increase of 73.2% from the same period last year, due primarily to an increase in sales volume and model mix, continuing cost reduction efforts 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 216.6 billion (USD 2,055 million), an increase of 141.3% from the same period last year.

Equity in income of affiliates amounted to JPY 31.6 billion (USD 300 million) for the quarter, an increase of 47.7% from the corresponding period last year.

 

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Business Segment

Motorcycle Business

For the three months ended December 31, 2012 and 2013

 

     Unit (Thousands)  
     Honda Group Unit Sales      Consolidated Unit Sales  
     Three months
ended
Dec. 31, 2012
     Three months
ended

Dec. 31, 2013
     Change      %      Three months
ended
Dec. 31, 2012
     Three months
ended

Dec. 31, 2013
     Change      %  

Motorcycle business

     3,815         4,251         436         11.4         2,350         2,657         307           13.1   

Japan

     51         52         1         2.0         51         52         1         2.0   

North America

     62         63         1         1.6         62         63         1         1.6   

Europe

     29         27         - 2         - 6.9         29         27         - 2         - 6.9   

Asia

     3,225         3,678         453          14.0         1,760         2,084         324         18.4   

Other Regions

     448         431         - 17         - 3.8         448         431         - 17         - 3.8   

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 Honda’s sales for the fiscal third quarter by business segment, in motorcycle business operations, revenue from sales to external customers increased 30.0%, to JPY 400.1 billion (USD 3,797 million) from the same period last year, due mainly to increased consolidated unit sales and favorable foreign currency translation effects. Operating income totaled JPY 34.5 billion (USD 328 million), an increase of 51.4% 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.

Automobile Business

For the three months ended December 31, 2012 and 2013

 

     Unit (Thousands)  
     Honda Group Unit Sales      Consolidated Unit Sales  
     Three months
ended
Dec. 31, 2012
     Three months
ended
Dec. 31, 2013
     Change      %      Three months
ended
Dec. 31, 2012
     Three months
ended

Dec. 31, 2013
     Change      %  

Automobile business

     986         1,082         96         9.7         841         900         59         7.0   

Japan

     138         216         78          56.5         135         215         80           59.3   

North America

     454         465         11         2.4         454         465         11         2.4   

Europe

     38         38         0         0.0         38         38         0         0.0   

Asia

     279         287         8         2.9         137         106         - 31         - 22.6   

Other Regions

     77         76         - 1         - 1.3         77         76         - 1         - 1.3   

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 23.9%, to JPY 2,372.4 billion (USD 22,512 million) from the same period last year due mainly to increased consolidated unit sales and favorable foreign currency translation effects. Operating income totaled JPY 154.2 billion (USD 1,464 million), an increase of 117.5% from the same period last year, due primarily to an increase in sales volume and model mix, continuing cost reduction efforts 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 operations increased 29.3%, to JPY 175.0 billion (USD 1,661 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 12.0% to JPY 42.7 billion (USD 405 million) from the same period last year due mainly to favorable foreign currency effects.

Power Product and Other Businesses

For the three months ended December 31, 2012 and 2013

 

     Unit (Thousands)  
     Honda Group Unit Sales/ Consolidated Unit Sales  
     Three months
ended
Dec. 31, 2012
     Three months
ended
Dec. 31, 2013
     Change      %  

Power product business

     1,195         1,162         - 33         - 2.8   

Japan

     63         63         0         0.0   

North America

     426         427         1         0.2   

Europe

     206         198         - 8         - 3.9   

Asia

     341         338         - 3         - 0.9   

Other Regions

     159         136         - 23         - 14.5   

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. In power product business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales for the three months ended December 31, 2012 and for the three months ended December 31, 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 9.1%, to JPY 73.2 billion (USD 695 million) from the same period last year, due mainly to favorable foreign currency translation effects. Honda reported an operating loss of JPY 2.8 billion (USD 27 million), a decrease of JPY 2.9 billion (USD 28 million) from the same period last year due mainly to increased SG&A expenses and 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 third quarter by geographic segment, in Japan, revenue from domestic and export sales amounted to JPY 1,092.8 billion (USD 10,369 million), an increase of 21.1% from the same period last year due mainly to increased revenue in automobile and motorcycle business operations. Operating income totaled JPY 59.3 billion (USD 563 million), an increase of 45.7% 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 27.7%, to JPY 1,591.4 billion (USD 15,100 million) from the same period last year due mainly to increased revenue in automobile business operations as well as favorable foreign currency translation effects. Operating income totaled JPY 131.1 billion (USD 1,244 million), an increase of 85.0% from the same period last year due mainly to continuing cost reduction efforts and favorable foreign currency effects, despite increased SG&A expenses.

In Europe, revenue increased by 26.6%, to JPY 180.7 billion (USD 1,715 million) from the same period last year due mainly to favorable foreign currency translation effects, despite decreased revenue in automobile business operations. Honda reported an operating loss of JPY 8.7 billion (USD 83 million), a decline of JPY 5.1 billion (USD 49 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 15.4%, to JPY 678.0 billion (USD 6,433 million) from the same period last year mainly due to increased revenue in motorcycle business operations and favorable foreign currency translation effects, despite decreased revenue in automobile business operations. Operating income increased by 23.4%, to JPY 50.0 billion (USD 475 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 9.6%, to JPY 243.9 billion (USD 2,315 million) from the same period last year mainly due to increased revenue in motorcycle business operations and favorable foreign currency translation effects, despite decrease in revenue from automobile business operations. Operating income totaled JPY 7.9 billion (USD 75 million), an increase of 197.2% 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 105.39=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 December 31, 2013.

 

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Nine Months Results

Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal nine months ended December 31, 2013 totaled JPY 403.5 billion, an increase of 38.5% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the fiscal nine months amounted to JPY 223.94, an increase of JPY 62.26 from JPY 161.68 for the same period last year.

Consolidated net sales and other operating revenue for the fiscal nine months amounted to JPY 8,745.2 billion, an increase of 22.6% 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 nine months amounted to JPY 584.9 billion, an increase of 43.1% from the same period last year, due primarily to increase in sales volume and model mix as well as 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 nine months totaled JPY 554.2 billion, an increase of 41.8% from the same period last year.

Equity in income of affiliates amounted to JPY 95.0 billion for the fiscal nine months, an increase of 36.5% from the same period last year.

 

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Business Segment

Motorcycle Business

For the nine months ended December 31, 2012 and 2013

 

 

     Unit (Thousands)  
     Honda Group Unit Sales      Consolidated Unit Sales  
     Nine months
ended
Dec. 31, 2012
     Nine months
ended
Dec. 31, 2013
     Change      %      Nine months
ended
Dec. 31, 2012
     Nine months
ended
Dec. 31, 2013
     Change      %  

Motorcycle business

     11,532         12,521         989         8.6         7,020         7,613         593         8.4   

Japan

     167         169         2         1.2         167         169         2         1.2   

North America

     181         193         12         6.6         181         193         12         6.6   

Europe

     127         117         - 10         - 7.9         127         117         - 10         - 7.9   

Asia

     9,672         10,693         1,021         10.6         5,160         5,785         625         12.1   

Other Regions

     1,385         1,349         - 36         - 2.6         1,385         1,349         - 36         - 2.6   

Notes: 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 Honda’s sales for the fiscal nine months by business segment, in motorcycle business operations, revenue from sales to external customers increased 26.0%, to JPY 1,215.1 billion from the same period last year, due mainly to increased consolidated unit sales and favorable foreign currency translation effects. Operating income totaled JPY 122.6 billion, an increase of 44.3% 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 nine months ended December 31, 2012 and 2013

 

     Unit (Thousands)  
     Honda Group Unit Sales      Consolidated Unit Sales  
     Nine months
ended
Dec. 31, 2012
     Nine months
ended
Dec. 31, 2013
     Change      %      Nine months
ended
Dec. 31, 2012
     Nine months
ended
Dec. 31, 2013
     Change      %  

Automobile business

     2,981         3,128         147         4.9         2,506         2,627         121         4.8   

Japan

     492         536         44         8.9         486         532         46         9.5   

North America

     1,308         1,371         63         4.8         1,308         1,371         63         4.8   

Europe

     121         118         - 3         - 2.5         121         118         - 3         - 2.5   

Asia

     842         881         39         4.6         373         384         11         2.9   

Other Regions

     218         222         4         1.8         218         222         4         1.8   

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 22.0%, to JPY 6,798.0 billion from the same period last year due mainly to increased consolidated unit sales and favorable foreign currency translation effects. Operating income totaled JPY 330.7 billion, an increase of 58.5% from the same period last year, due primarily to favorable foreign currency effects, despite increased SG&A and R&D expenses.

 

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Financial Services Business

Revenue from customers in the financial services business operations increased 28.6%, to JPY 510.4 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 14.2% to JPY 133.9 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 nine months ended December 31, 2012 and 2013

 

 

     Unit (Thousands)  
     Honda Group Unit Sales/Consolidated Unit Sales  
     Nine  months
ended
Dec. 31, 2012
     Nine  months
ended
Dec. 31, 2013
     Change      %  
           

Power product business

     4,108         4,046         - 62         - 1.5   

Japan

     233         219         - 14         - 6.0   

North America

     1,620         1,759         139         8.6   

Europe

     592         591         - 1         - 0.2   

Asia

     1,224         1,128         - 96         - 7.8   

Other Regions

     439         349         - 90         - 20.5   

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. In power product business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales for the nine months ended December 31, 2012 and for the nine months ended December 31, 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 11.1%, to JPY 221.5 billion from the same period last year, due mainly to favorable foreign currency translation effects. Honda reported an operating loss of JPY 2.3 billion, a decrease of JPY 0.2 billion from the same period last year due mainly to decrease in sales volume and model mix in power product business operations, despite favorable foreign currency effects.

 

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Geographical Information

With respect to Honda’s sales for the fiscal nine months by geographic segment, in Japan, revenue from domestic and export sales amounted to JPY 3,083.1 billion, an increase of 8.8% from the same period last year due mainly to increased revenue in automobile and motorcycle business operations. Operating income totaled JPY 170.8 billion, an increase of 29.7% from the same period last year due mainly to favorable foreign currency effects, despite increased SG&A and R&D expenses.

In North America, revenue increased by 29.8%, to JPY 4,564.6 billion from the same period last year due mainly to increased revenue in automobile business operations, as well as favorable foreign currency translation effects. Operating income totaled JPY 249.0 billion, an increase of 38.5% from the same period last year due mainly to an increase in sales volume and model mix, and favorable foreign currency effects, despite an increase in SG&A expenses.

In Europe, revenue increased by 22.0%, to JPY 531.2 billion from the same period last year mainly due to favorable foreign currency translation effects, despite decreased revenue in automobile and motorcycle business operations. Honda reported an operating loss of JPY 32.0 billion, a decline of JPY 12.1 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 26.8%, to JPY 2,078.6 billion from the same period last year mainly due to increased revenue in motorcycle business operations as well as favorable foreign currency translation effects. Operating income increased by 50.7%, to JPY 163.8 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 13.8%, to JPY 765.1 billion from the same period last year mainly due to increased revenue in motorcycle and automobile business operations as well as favorable foreign currency translation effects. Operating income totaled JPY 31.9 billion, an increase of 25.5% 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 Nine Months Ended December 31, 2013

Total assets increased by JPY 1,911.5 billion, to JPY 15,546.9 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. Total liabilities increased by JPY 1,149.8 billion, to JPY 9,579.7 billion from March 31, 2013, mainly due to an increase in long-term debt and foreign currency translation effects. Total equity increased by JPY 761.7 billion, to JPY 5,967.1 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 Nine Months Ended December 31, 2013

Consolidated cash and cash equivalents on December 31, 2013 increased by JPY 8.4 billion from March 31, 2013, to JPY 1,214.5 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 870.4 billion for the fiscal nine months ended December 31, 2013. Cash inflows from operating activities increased by JPY 337.8 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 1,344.4 billion. Cash outflows from investing activities increased by JPY 562.6 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 413.2 billion. Cash inflows from financing activities increased by JPY 269.0 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

     755.0         + 54.4

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 100 and JPY 134, 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.

     102.6   

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

     20.0   

SG&A expenses

     - 118.0   

R&D expenses

     - 47.5   

Currency effect

     278.0   
  

 

 

 

Operating income compared with fiscal year 2013

     235.1   
  

 

 

 

Fair value of derivative instruments

     69.0   

Others

     - 38.1   
  

 

 

 

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

     266.1   
  

 

 

 

 

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Dividend per Share of Common Stock

The Board of Directors of Honda Motor Co., Ltd., at its meeting held on January 31, 2014, resolved to make the quarterly dividend JPY 20 per share of common stock, the record date of which is December 31, 2013.

The year-end dividend and total annual dividend per share of common stock for the fiscal year ending March 31, 2014 are expected to be JPY 20 and JPY 80 per share, respectively.

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 nine months ended December 31, 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 nine months and the three months ended December 31, 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.

 

- 13 -


Table of Contents

Consolidated Financial Summary

For the three months and nine months ended December 31, 2012 and 2013

Financial Highlights

 

     Yen (millions)  
     Three months ended
Dec. 31, 2012
Unaudited
     Three months ended
Dec. 31, 2013
Unaudited
     Nine months ended
Dec. 31, 2012
unaudited
     Nine months ended
Dec. 31, 2013
Unaudited
 

Net sales and other operating revenue

     2,425,792         3,020,889         7,132,987         8,745,205   

Operating income

     131,941         228,574         408,821         584,988   

Income before income taxes and equity in income of affiliates

     89,777         216,612         390,817         554,234   

Net income attributable to Honda Motor Co., Ltd.

     77,441         160,732         291,397         403,599   
     Yen  

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

     42.97         89.18         161.68         223.94   
     U.S. Dollar (millions)  
            Three months ended
Dec. 31, 2013
Unaudited
            Nine months ended
Dec. 31, 2013
Unaudited
 

Net sales and other operating revenue

        28,664            82,979   

Operating income

        2,169            5,551   

Income before income taxes and equity in income of affiliates

        2,055            5,259   

Net income attributable to Honda Motor Co., Ltd.

        1,525            3,830   
     U.S. Dollar  

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

        0.85            2.12   

 

- 14 -


Table of Contents

[1] Consolidated Balance Sheets

 

     Yen (millions)  
     Mar. 31,  2013
audited
     Dec. 31, 2013
unaudited
 

Assets

     

Current assets:

     

Cash and cash equivalents

     1,206,128         1,214,594   

Trade accounts and notes receivable

     1,005,981         1,035,190   

Finance subsidiaries-receivables, net

     1,243,002         1,477,091   

Inventories

     1,215,421         1,318,174   

Deferred income taxes

     234,075         210,023   

Other current assets

     418,446         456,037   
  

 

 

    

 

 

 

Total current assets

     5,323,053         5,711,109   
  

 

 

    

 

 

 

Finance subsidiaries-receivables, net

     2,788,135         3,407,530   

Investments and advances:

     

Investments in and advances to affiliates

     459,110         582,026   

Other, including marketable equity securities

     209,680         287,745   
  

 

 

    

 

 

 

Total investments and advances

     668,790         869,771   
  

 

 

    

 

 

 

Property on operating leases:

     

Vehicles

     2,243,424         2,704,860   

Less accumulated depreciation

     400,292         477,112   
  

 

 

    

 

 

 

Net property on operating leases

     1,843,132         2,227,748   
  

 

 

    

 

 

 

Property, plant and equipment, at cost:

     

Land

     515,661         520,332   

Buildings

     1,686,638         1,836,040   

Machinery and equipment

     3,832,090         4,345,096   

Construction in progress

     288,073         317,642   
  

 

 

    

 

 

 
     6,322,462         7,019,110   

Less accumulated depreciation and amortization

     3,922,932         4,321,819   
  

 

 

    

 

 

 

Net property, plant and equipment

     2,399,530         2,697,291   
  

 

 

    

 

 

 

Other assets

     612,717         633,470   
  

 

 

    

 

 

 

Total assets

     13,635,357         15,546,919   
  

 

 

    

 

 

 

 

- 15 -


Table of Contents

[1] Consolidated Balance Sheets – continued

 

     Yen (millions)  
     Mar. 31,  2013
audited
    Dec. 31, 2013
unaudited
 

Liabilities and Equity

    

Current liabilities:

    

Short-term debt

     1,238,297        1,460,223   

Current portion of long-term debt

     945,046        1,100,448   

Trade payables:

    

Notes

     31,354        24,917   

Accounts

     956,660        951,867   

Accrued expenses

     593,570        553,334   

Income taxes payable

     48,454        48,832   

Other current liabilities

     275,623        345,422   
  

 

 

   

 

 

 

Total current liabilities

     4,089,004        4,485,043   
  

 

 

   

 

 

 

Long-term debt, excluding current portion

     2,710,845        3,427,700   

Other liabilities

     1,630,085        1,667,022   
  

 

 

   

 

 

 

Total liabilities

     8,429,934        9,579,765   
  

 

 

   

 

 

 

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 Dec. 31, 2013

     86,067        86,067   

Capital surplus

     171,117        171,117   

Legal reserves

     47,583        48,986   

Retained earnings

     6,001,649        6,297,510   

Accumulated other comprehensive income (loss), net

     (1,236,792     (798,542

Treasury stock, at cost 9,131,140 shares on Mar. 31, 2013 and 9,136,201 shares on Dec. 31, 2013

     (26,124     (26,145
  

 

 

   

 

 

 

Total Honda Motor Co., Ltd. shareholders’ equity

     5,043,500        5,778,993   
  

 

 

   

 

 

 

Noncontrolling interests

     161,923        188,161   
  

 

 

   

 

 

 

Total equity

     5,205,423        5,967,154   
  

 

 

   

 

 

 

Commitments and contingent liabilities

    
  

 

 

   

 

 

 

Total liabilities and equity

     13,635,357        15,546,919   
  

 

 

   

 

 

 

 

- 16 -


Table of Contents

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

Consolidated Statements of Income

For the three months ended December 31, 2012 and 2013

 

     Yen (millions)  
     Three months ended
Dec. 31, 2012
unaudited
    Three months ended
Dec. 31, 2013
unaudited
 

Net sales and other operating revenue

     2,425,792        3,020,889   

Operating costs and expenses:

    

Cost of sales

     1,800,557        2,208,846   

Selling, general and administrative

     354,767        425,949   

Research and development

     138,527        157,520   
  

 

 

   

 

 

 
     2,293,851        2,792,315   
  

 

 

   

 

 

 

Operating income

     131,941        228,574   

Other income (expenses):

    

Interest income

     5,561        5,620   

Interest expense

     (2,812     (3,849

Other, net

     (44,913     (13,733
  

 

 

   

 

 

 
     (42,164     (11,962
  

 

 

   

 

 

 

Income before income taxes and equity in income of affiliates

     89,777        216,612   

Income tax expense:

    

Current

     30,295        65,519   

Deferred

     (2,199     14,592   
  

 

 

   

 

 

 
     28,096        80,111   
  

 

 

   

 

 

 

Income before equity in income of affiliates

     61,681        136,501   

Equity in income of affiliates

     21,411        31,631   
  

 

 

   

 

 

 

Net income

     83,092        168,132   

Less: Net income attributable to noncontrolling interests

     5,651        7,400   
  

 

 

   

 

 

 

Net income attributable to Honda Motor Co., Ltd.

     77,441        160,732   
  

 

 

   

 

 

 
     Yen  

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

     42.97        89.18   

 

- 17 -


Table of Contents

Consolidated Statements of Comprehensive Income

For the three months ended December 31, 2012 and 2013

 

     Yen (millions)  
     Three months ended
Dec. 31, 2012
unaudited
    Three months ended
Dec. 31, 2013
unaudited
 

Net income

     83,092        168,132   

Other comprehensive income (loss), net of tax:

    

Adjustments from foreign currency translation

     256,312        190,374   

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

     8,339        4,197   

Unrealized gains (losses) on derivative instruments, net

     (842     (587

Pension and other postretirement benefits adjustments

     1,846        (12,096
  

 

 

   

 

 

 

Other comprehensive income (loss), net of tax

     265,655        181,888   
  

 

 

   

 

 

 

Comprehensive income (loss)

     348,747        350,020   

Less: Comprehensive income attributable to noncontrolling interests

     10,736        11,778   
  

 

 

   

 

 

 

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

     338,011        338,242   
  

 

 

   

 

 

 

 

- 18 -


Table of Contents

Consolidated Statements of Income

For the nine months ended December 31, 2012 and 2013

 

     Yen (millions)  
     Nine months ended
Dec. 31, 2012
unaudited
    Nine months ended
Dec. 31, 2013
unaudited
 

Net sales and other operating revenue

     7,132,987        8,745,205   

Operating costs and expenses:

    

Cost of sales

     5,294,606        6,484,067   

Selling, general and administrative

     1,024,922        1,225,873   

Research and development

     404,638        450,277   
  

 

 

   

 

 

 
     6,724,166        8,160,217   
  

 

 

   

 

 

 

Operating income

     408,821        584,988   

Other income (expenses):

    

Interest income

     19,921        17,540   

Interest expense

     (8,943     (9,661

Other, net

     (28,982     (38,633
  

 

 

   

 

 

 
     (18,004     (30,754
  

 

 

   

 

 

 

Income before income taxes and equity in income of affiliates

     390,817        554,234   

Income tax expense:

    

Current

     104,081        168,527   

Deferred

     46,661        51,853   
  

 

 

   

 

 

 
     150,742        220,380   
  

 

 

   

 

 

 

Income before equity in income of affiliates

     240,075        333,854   

Equity in income of affiliates

     69,640        95,084   
  

 

 

   

 

 

 

Net income

     309,715        428,938   

Less: Net income attributable to noncontrolling interests

     18,318        25,339   
  

 

 

   

 

 

 

Net income attributable to Honda Motor Co., Ltd.

     291,397        403,599   
  

 

 

   

 

 

 
     Yen  

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

     161.68        223.94   

 

- 19 -


Table of Contents

Consolidated Statements of Comprehensive Income

For the nine months ended December 31, 2012 and 2013

 

     Yen (millions)  
     Nine months ended
Dec. 31, 2012
unaudited
    Nine months ended
Dec. 31, 2013
unaudited
 

Net income

     309,715        428,938   

Other comprehensive income (loss), net of tax:

    

Adjustments from foreign currency translation

     104,013        356,124   

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

     (3,889     22,647   

Unrealized gains (losses) on derivative instruments, net

     (493     (241

Pension and other postretirement benefits adjustments

     6,112        69,298   
  

 

 

   

 

 

 

Other comprehensive income (loss), net of tax

     105,743        447,828   
  

 

 

   

 

 

 

Comprehensive income (loss)

     415,458        876,766   

Less: Comprehensive income attributable to noncontrolling interests

     21,560        34,917   
  

 

 

   

 

 

 

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

     393,898        841,849   
  

 

 

   

 

 

 

 

- 20 -


Table of Contents

[3] Consolidated Statements of Cash Flows

 

     Yen (millions)  
     Nine months ended
Dec. 31, 2012
unaudited
    Nine months ended
Dec. 31, 2013
unaudited
 

Cash flows from operating activities:

    

Net income

     309,715        428,938   

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

    

Depreciation excluding property on operating leases

     240,115        327,932   

Depreciation of property on operating leases

     182,193        253,920   

Deferred income taxes

     46,661        51,853   

Equity in income of affiliates

     (69,640     (95,084

Dividends from affiliates

     36,053        17,027   

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

     5,890        15,828   

Impairment loss on property on operating leases

     3,501        2,798   

Loss (gain) on derivative instruments, net

     29,941        (24,656

Decrease (increase) in assets:

    

Trade accounts and notes receivable

     45,104        42,855   

Inventories

     (143,483     (9,686

Other current assets

     44,359        10,633   

Other assets

     (21,006     (16,228

Increase (decrease) in liabilities:

    

Trade accounts and notes payable

     (162,593     (33,090

Accrued expenses

     (12,676     (33,446

Income taxes payable

     10,354        (2,323

Other current liabilities

     41,107        56,701   

Other liabilities

     (10,198     (47,431

Other, net

     (42,709     (76,044
  

 

 

   

 

 

 

Net cash provided by operating activities

     532,688        870,497   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Increase in investments and advances

     (15,031     (33,959

Decrease in investments and advances

     15,786        32,342   

Payments for purchases of available-for-sale securities

     —          (35,771

Proceeds from sales of available-for-sale securities

     682        6,614   

Payments for purchases of held-to-maturity securities

     (3,611     (19,146

Proceeds from redemptions of held-to-maturity securities

     9,207        1,762   

Capital expenditures

     (440,479     (519,034

Proceeds from sales of property, plant and equipment

     27,487        20,475   

Proceeds from insurance recoveries for damaged property, plant and equipment

     4,665        6,800   

Acquisitions of finance subsidiaries-receivables

     (1,438,155     (2,159,681

Collections of finance subsidiaries-receivables

     1,344,809        1,748,239   

Purchases of operating lease assets

     (573,890     (833,232

Proceeds from sales of operating lease assets

     286,709        440,102   
  

 

 

   

 

 

 

Net cash used in investing activities

     (781,821     (1,344,489
  

 

 

   

 

 

 

 

- 21 -


Table of Contents

[3] Consolidated Statements of Cash Flows – continued

 

     Yen (millions)  
     Nine months ended
Dec. 31, 2012
unaudited
    Nine months ended
Dec. 31, 2013
unaudited
 

Cash flows from financing activities:

    

Proceeds from short-term debt

     4,981,439        7,016,475   

Repayments of short-term debt

     (4,741,729     (6,910,816

Proceeds from long-term debt

     823,496        1,348,115   

Repayments of long-term debt

     (795,247     (897,783

Dividends paid

     (95,521     (106,335

Dividends paid to noncontrolling interests

     (6,045     (8,703

Sales (purchases) of treasury stock, net

     (3     (21

Other, net

     (22,122     (27,653
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     144,268        413,279   
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     16,254        69,179   
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (88,611     8,466   
  

 

 

   

 

 

 

Cash and cash equivalents at beginning of the year

     1,247,113        1,206,128   
  

 

 

   

 

 

 

Cash and cash equivalents at end of the period

     1,158,502        1,214,594   
  

 

 

   

 

 

 

 

- 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 and 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 and 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) For the three months ended December 31, 2012

 

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

Net sales and other operating revenue:

                   

External customers

     307,814         1,915,552         135,329         67,097         2,425,792         —          2,425,792   

Intersegment

     —           2,877         2,827         4,214         9,918         (9,918     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     307,814         1,918,429         138,156         71,311         2,435,710         (9,918     2,425,792   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Segment income (loss)

     22,803         70,926         38,136         76         131,941         —          131,941   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

For the three months ended December 31, 2013

 

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

Net sales and other operating revenue:

                  

External customers

     400,149         2,372,498         175,016         73,226        3,020,889         —          3,020,889   

Intersegment

     —           5,213         2,590         5,380        13,183         (13,183     —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     400,149         2,377,711         177,606         78,606        3,034,072         (13,183     3,020,889   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment income (loss)

     34,520         154,242         42,709         (2,897     228,574         —          228,574   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

- 24 -


Table of Contents

(B) As of and for the nine months ended December 31, 2012

 

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

Net sales and other operating revenue:

                  

External customers

     964,178         5,572,275         397,008         199,526        7,132,987         —          7,132,987   

Intersegment

     —           10,709         8,344         9,032        28,085         (28,085     —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     964,178         5,582,984         405,352         208,558        7,161,072         (28,085     7,132,987   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment income (loss)

     85,005         208,724         117,250         (2,158     408,821         —          408,821   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Assets

     981,005         5,330,011         6,197,252         295,000        12,803,268         (277,946     12,525,322   

Depreciation and amortization

     25,644         207,511         183,151         6,002        422,308         —          422,308   

Capital expenditures

     42,650         358,004         574,903         9,864        985,421         —          985,421   

As of and for the nine months ended December 31, 2013

 

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

Net sales and other operating revenue:

                  

External customers

     1,215,108         6,798,093         510,428         221,576        8,745,205         —          8,745,205   

Intersegment

     —           13,803         7,749         10,937        32,489         (32,489     —     
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     1,215,108         6,811,896         518,177         232,513        8,777,694         (32,489     8,745,205   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment income (loss)

     122,644         330,772         133,937         (2,365     584,988         —          584,988   
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Assets

     1,255,574         6,218,830         8,082,774         347,236        15,904,414         (357,495     15,546,919   

Depreciation and amortization

     34,171         284,338         255,567         7,776        581,852         —          581,852   

Capital expenditures

     37,863         436,741         835,991         10,347        1,320,942         —          1,320,942   

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 250,392 million as of December 31, 2012 and JPY 305,906 million as of December 31, 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 182,193 million for the nine months ended December 31, 2012 and JPY 253,920 million for the nine months ended December 31, 2013, respectively, of depreciation of property on operating leases.

 

4. Capital expenditure of Financial Services Business includes JPY 573,890 million for the nine months ended December 31, 2012 and JPY 833,232 million for the nine months ended December 31, 2013 respectively, of purchase of operating lease assets.

 

5. The amounts of Assets and Depreciation and amortization for the nine months ended December 31, 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) For the three months ended December 31, 2012

 

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

Net sales and other operating revenue:

                     

External customers

     408,108         1,196,301         113,077        490,606         217,700         2,425,792         —          2,425,792   

Transfers between geographic areas

     494,282         49,564         29,729        96,805         4,823         675,203         (675,203     —     
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     902,390         1,245,865         142,806        587,411         222,523         3,100,995         (675,203     2,425,792   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income (loss)

     40,734         70,892         (3,582     40,572         2,662         151,278         (19,337     131,941   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

For the three months ended December 31, 2013

 

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

Net sales and other operating revenue:

                     

External customers

     587,390         1,486,584         153,428        552,569         240,918         3,020,889         —          3,020,889   

Transfers between geographic areas

     505,413         104,848         27,332        125,439         3,068         766,100         (766,100     —     
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     1,092,803         1,591,432         180,760        678,008         243,986         3,786,989         (766,100     3,020,889   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income (loss)

     59,366         131,128         (8,751     50,061         7,911         239,715         (11,141     228,574   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

 

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Table of Contents

(B) As of and for the nine months ended December 31, 2012

 

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

Net sales and other operating revenue:

                     

External customers

     1,407,673         3,343,646         360,556        1,364,147         656,965         7,132,987         —          7,132,987   

Transfers between geographic areas

     1,426,461         171,692         74,700        275,535         15,572         1,963,960         (1,963,960     —     
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     2,834,134         3,515,338         435,256        1,639,682         672,537         9,096,947         (1,963,960     7,132,987   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income (loss)

     131,759         179,858         (19,941     108,726         25,481         425,883         (17,062     408,821   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Assets

     3,157,163         6,909,128         578,799        1,335,433         630,408         12,610,931         (85,609     12,525,322   

Long-lived assets

     1,099,664         2,265,033         117,260        353,154         125,222         3,960,333         —          3,960,333   

As of and for the nine months ended December 31, 2013

 

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

Net sales and other operating revenue:

                     

External customers

     1,525,930         4,276,802         467,107        1,719,827         755,539         8,745,205         —          8,745,205   

Transfers between geographic areas

     1,557,227         287,851         64,110        358,802         9,615         2,277,605         (2,277,605     —     
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     3,083,157         4,564,653         531,217        2,078,629         765,154         11,022,810         (2,277,605     8,745,205   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income (loss)

     170,834         249,015         (32,065     163,836         31,977         583,597         1,391        584,988   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Assets

     3,358,668         8,971,157         680,265        1,901,843         754,394         15,666,327         (119,408     15,546,919   

Long-lived assets

     1,231,875         2,987,988         136,349        545,648         155,123         5,056,983         —          5,056,983   

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 250,392 million as of December 31, 2012 and JPY 305,906 million as of December 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 nine months ended December 31, 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 nine months ended December 31, 2012, Honda recognized impairment loss of JPY 7,273 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 December 31, 2012 and for the nine and the three months ended December 31, 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 nine months ended December 31, 2012. These adjustments increased previously reported net cash provided by operating activities and increased previously reported net cash used in financing activities by JPY 20,508 million for the nine months ended December 31, 2012.

3. Impact of the plan amendment and curtailment in consolidated subsidiaries on the Company’s consolidated financial position and results of operations

In September 2013, certain consolidated subsidiaries in North America amended their existing defined benefit pension plans, effective January 1, 2014, to reduce the benefits in future periods for their employees on or after January 1, 2014.

This plan amendment resulted in a reduction of the projected benefit obligation and recognition of the prior service benefit at the date of the plan amendment which is amortized over the average remaining service period from the date of the plan amendment. The consolidated subsidiaries also remeasured their projected benefit obligation and the fair value of related plan assets at the date of the plan amendment. The effects of the plan amendment and the remeasurement were recorded in other comprehensive income (loss), net of tax during the three months ended September 30, 2013.

Following this plan amendment, employees of these consolidated subsidiaries could elect to move from the existing defined benefit pension plans to a defined contribution pension plan on January 1, 2014. Consequently, certain employees elected to move to the defined contribution pension plan in October 2013, resulting in a curtailment in the existing defined benefit pension plans. As a result, Honda recognized ¥21,368 million of the prior service benefit included in accumulated other comprehensive income (loss) as a curtailment gain, of which ¥15,407 million is included in cost of sales and ¥5,961 million is included in selling, general and administrative expense in the accompanying consolidated statements of income for the three months ended December 31, 2013. The consolidated subsidiaries also remeasured their projected benefit obligation and the fair value of plan assets in the existing defined benefit pension plans at the date of the curtailment. The effect of the remeasurement was recorded in other comprehensive income (loss), net of tax during the three months ended December 31, 2013. This plan amendment and curtailment did not have a material impact on pension costs and contributions to the pension plan for the nine months and the three months ended December 31, 2013.

 

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