Form 6-K
Table of Contents

No.1-7628

 

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF JULY 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):  ¨

 

 

 


Table of Contents

Contents

Exhibit 1:

On July 29, 2014, Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal first quarter ended June 30, 2014.


Table of Contents

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: August 5, 2014


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July 29, 2014

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL FIRST QUARTER ENDED JUNE 30, 2014

Tokyo, July 29, 2014 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal first quarter ended June 30, 2014.

First Quarter Results

Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal first quarter ended June 30, 2014 totaled JPY 146.5 billion (USD 1,445 million), an increase of 19.6% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the quarter amounted to JPY 81.29 (USD 0.80), an increase of JPY 13.32 (USD 0.13) from JPY 67.97 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 2,988.2 billion (USD 29,482 million), an increase of 5.4% 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 198.0 billion (USD 1,954 million), an increase of 7.1% from the same period last year, due primarily to continuing cost reduction efforts and an increase in sales volume and model mix, despite increased SG&A expenses as well as unfavorable foreign currency effects.

Consolidated income before income taxes and equity in income of affiliates for the quarter totaled JPY 198.8 billion (USD 1,961 million), an increase of 15.6% from the same period last year.

Equity in income of affiliates amounted to JPY 38.5 billion (USD 381 million) for the quarter, an increase of 21.5% from the corresponding period last year.

 

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Business Segment

Motorcycle Business

For the three months ended June 30, 2013 and 2014

 

     Unit (Thousands)  
     Honda Group Unit Sales      Consolidated Unit Sales  
     Three  months
ended
Jun. 30, 2013
     Three  months
ended
Jun. 30, 2014
     Change      %      Three  months
ended
Jun. 30, 2013
     Three  months
ended
Jun. 30 2014
     Change      %  

Motorcycle business

     4,054         4,137         83         2.0         2,371         2,457         86         3.6   

Japan

     54         48         - 6         - 11.1         54         48         - 6         - 11.1   

North America

     62         62         0         0.0         62         62         0         0.0   

Europe

     52         60         8         15.4         52         60         8         15.4   

Asia

     3,479         3,593         114         3.3         1,796         1,913         117         6.5   

Other Regions

     407         374         - 33         - 8.1         407         374         - 33         - 8.1   

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 first quarter by business segment, in motorcycle business operations, revenue from sales to external customers increased 2.7%, to JPY 407.7 billion (USD 4,023 million) from the same period last year due mainly to increased consolidated unit sales, despite unfavorable foreign currency translation effects. Operating income totaled JPY 43.9 billion (USD 434 million), an increase of 3.3% from the same period last year, due primarily to an increase in sales volume and model mix, despite increased SG&A expenses and unfavorable foreign currency effects.

Automobile Business

For the three months ended June 30, 2013 and 2014

 

     Unit (Thousands)  
     Honda Group Unit Sales      Consolidated Unit Sales  
     Three  months
ended
Jun. 30, 2013
     Three  months
ended
Jun. 30, 2014
     Change      %      Three  months
ended
Jun. 30, 2013
     Three  months
ended
Jun. 30, 2014
     Change      %  

Automobile business

     999         1,061         62         6.2         858         895         37         4.3   

Japan

     140         202         62         44.3         139         201         62         44.6   

North America

     459         445         - 14         - 3.1         459         445         - 14         - 3.1   

Europe

     40         40         0         0.0         40         40         0         0.0   

Asia

     285         316         31         10.9         145         151         6         4.1   

Other Regions

     75         58         - 17         - 22.7         75         58         - 17         - 22.7   

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. Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries and sold through our consolidated 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 5.6%, to JPY 2,319.5 billion (USD 22,885 million) from the same period last year due mainly to increased consolidated unit sales and favorable foreign currency translation effects. Operating income totaled JPY 99.8 billion (USD 985 million), an increase of 3.6% from the same period last year, due primarily to continuing cost reduction efforts and an increase in sales volume and model mix, despite increased SG&A.

 

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Financial Services Business

Revenue from customers in the financial services business operations increased 12.9%, to JPY 186.7 billion (USD 1,842 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 16.1% to JPY 51.8 billion (USD 511 million) from the same period last year due mainly to increased profit attributable to increased revenue as well as favorable foreign currency effects.

Power Product and Other Businesses

For the three months ended June 30, 2013 and 2014

 

     Unit (Thousands)  
     Honda Group Unit Sales/ Consolidated Unit Sales  
     Three  months
ended
Jun. 30, 2013
     Three  months
ended
Jun. 30, 2014
               
           Change      %  

Power product business

     1,589         1,510         - 79         - 5.0   

Japan

     63         68         5         7.9   

North America

     828         773         - 55         - 6.6   

Europe

     237         240         3         1.3   

Asia

     364         336         - 28         - 7.7   

Other Regions

     97         93         - 4         - 4.1   

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 June 30, 2013 and for the three months ended June 30, 2014, since no affiliate accounted for under the equity method was involved in the sale of Honda power products.

Revenue from sales to external customers in power product and other businesses decreased 1.3%, to JPY 74.2 billion (USD 732 million) from the same period last year, due mainly to decreased consolidated unit sales in power product business operations, despite favorable foreign currency translation effects. Operating income increased 75.5% to JPY 2.3 billion (USD 24 million) from the same period last year, due mainly to decreased R&D and SG&A expenses.

 

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Geographical Information

With respect to Honda’s sales for the fiscal first quarter by geographic segment, in Japan, revenue from domestic and export sales amounted to JPY 987.9 billion (USD 9,747 million), an increase of 1.2% from the same period last year due mainly to increased revenue in automobile business operations. Operating income JPY 62.1 billion (USD 613 million) basically unchanged from the same period last year, due mainly to increased SG&A expenses, despite continuing cost reduction efforts.

In North America, revenue increased by 2.9%, to JPY 1,545.5 billion (USD 15,249 million) from the same period last year due mainly to favorable foreign currency translation effects. Operating income totaled JPY 67.5 billion (USD 666 million), a decrease of 6.0% from the same period last year due mainly to a decrease in sales volume and model mix, as well as increased SG&A expenses.

In Europe, revenue increased by 10.6%, to JPY 194.5 billion (USD 1,920 million) from the same period last year due mainly to increased revenue in motorcycle business operations as well as favorable foreign currency translation effects. Honda reported an operating loss of JPY 1.4 billion (USD 15 million), an improvement of JPY 8.2 million (USD 81 million) from the same period last year due mainly to decreased SG&A expenses and continuing cost reduction efforts.

 

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In Asia, revenue increased by 3.8%, to JPY 733.4 billion (USD 7,236 million) from the same period last year mainly due to increased revenue in motorcycle and automobile business operations. Operating income increased by 21.4%, to JPY 65.2 billion (USD 644 million) from the same period last year due mainly to an increase in sales volume and model mix, despite increased SG&A expenses.

In Other regions, which includes South America, the Middle/Near East, Africa and Oceania, revenue decreased by 13.5%, to JPY 208.2 billion (USD 2,055 million) from the same period last year mainly due to decreased revenue in automobile business operations as well as unfavorable foreign currency translation effects. Operating income totaled JPY 4.5 billion (USD 45 million), a decrease of 15.2% from the same period last year mainly due to increased SG&A expenses as well as unfavorable foreign currency effects.

Explanatory note:

United States dollar amounts have been translated from yen solely for the convenience of the reader at the rate of JPY 101.36=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 June 30, 2014.

 

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Consolidated Statements of Balance Sheets for the Fiscal First Quarter Ended June 30, 2014

Total assets decreased by JPY 134.2 billion, to JPY 15,487.8 billion from March 31, 2014, mainly due to a decrease in Trade accounts and notes receivables, as well as foreign currency translation effects, despite a decrease in Property on operating leases. Total liabilities decreased by JPY 188.9 billion, to JPY 9,319.6 billion from March 31, 2014, mainly due to a decrease in Trade accounts payable and foreign currency translation effects. Total equity increased by JPY 54.7 billion, to JPY 6,168.1 billion from March 31, 2014 due mainly to net income, despite foreign currency translation effects.

 

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Consolidated Statements of Cash Flow for the Fiscal First Quarter Ended June 30, 2014

Consolidated cash and cash equivalents on June 30, 2014 decreased by JPY 61.2 billion from March 31, 2014, to JPY 1,107.6 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 354.6 billion for the fiscal first quarter ended June 30, 2014. Cash inflows from operating activities increased by JPY 50.4 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 387.5 billion. Cash outflows from investing activities decreased by JPY 110.6 billion compared with the same period of the previous fiscal year, due mainly to a decrease in acquisitions of finance subsidiaries-receivables and an increase of collections of finance subsidiaries-receivables, despite an increase in purchases of operating lease assets.

Cash flow from financing activities

Net cash used in financing activities amounted to JPY 18.0 billion. Cash outflows from financing activities increased by JPY 99.1 billion compared with the same period of the previous fiscal year, due mainly to a decrease in proceeds from debt as well as an increase in cash outflow due to an increase in dividends paid.

 

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Forecasts for the Fiscal Year Ending March 31, 2015

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2015, Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2015

 

     Yen (billions)      Changes from FY 2014  

Net sales and other operating revenue

     12,800.0         + 8.1

Operating income

     770.0         + 2.6

Income before income taxes and equity in income of affiliates

     755.0         + 3.6

Net income attributable to Honda Motor Co., Ltd.

     600.0         + 4.5
     Yen         

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

     332.91      

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 101 and JPY 136, respectively, for the full year ending March 31, 2015.

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, 2015 from the previous year are as follows.

 

     Yen (billions)  

Revenue, model mix, etc.

     125.7   

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

     50.0   

SG&A expenses

     - 87.0   

R&D expenses

     - 12.0   

Currency effect

     - 57.0   
  

 

 

 

Operating income compared with fiscal year 2014

     19.7   
  

 

 

 

Fair value of derivative instruments

     - 43.0   

Others

     49.3   
  

 

 

 

Income before income taxes and equity in income of affiliates compared with fiscal year 2014

     26.0   
  

 

 

 

 

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Dividend per Share of Common Stock

The Board of Directors of Honda Motor Co., Ltd., at its meeting held on July 29, 2014, resolved to make the quarterly dividend JPY 22 per share of common stock, the record date of which is June 30, 2014. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2015, is JPY 88 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

Income taxes

Honda computes interim income tax expense (benefit) by multiplying a 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 three months ended June 30, 2014. If a reliable estimate cannot be made, Honda utilizes the actual year-to-date effective tax rate.

 

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Consolidated Financial Summary

For the three months ended June 30, 2013 and 2014

Financial Highlights

 

     Yen (millions)  
     Three months
ended
Jun. 30, 2013
     Three months
ended
Jun. 30, 2014
 

Net sales and other operating revenue

     2,834,095         2,988,279   

Operating income

     184,963         198,043   

Income before income taxes and equity in income of affiliates

     172,035         198,813   

Net income attributable to Honda Motor Co., Ltd.

     122,499         146,512   
     Yen  

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

     67.97         81.29   
     U.S. Dollar (millions)  
            Three  months
ended
Jun. 30, 2014
 

Net sales and other operating revenue

        29,482   

Operating income

        1,954   

Income before income taxes and equity in income of affiliates

        1,961   

Net income attributable to Honda Motor Co., Ltd.

        1,445   
     U.S. Dollar  

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

        0.80   

 

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[1] Consolidated Balance Sheets

 

     Yen (millions)  
     Mar. 31, 2014      Jun. 30, 2014  

Assets

     

Current assets:

     

Cash and cash equivalents

     1,168,914         1,107,647   

Trade accounts and notes receivable

     1,158,671         1,048,694   

Finance subsidiaries-receivables, net

     1,464,215         1,478,573   

Inventories

     1,302,895         1,289,093   

Deferred income taxes

     202,123        182,655  

Other current assets

     474,448        453,722  
  

 

 

    

 

 

 

Total current assets

     5,771,266        5,560,384  
  

 

 

    

 

 

 

Finance subsidiaries-receivables, net

     3,317,553        3,292,260  

Investments and advances:

     

Investments in and advances to affiliates

     564,266         595,647   

Other, including marketable equity securities

     253,661         262,185   
  

 

 

    

 

 

 

Total investments and advances

     817,927         857,832   
  

 

 

    

 

 

 

Property on operating leases:

     

Vehicles

     2,718,131         2,794,472   

Less accumulated depreciation

     481,410         482,073   
  

 

 

    

 

 

 

Net property on operating leases

     2,236,721         2,312,399   
  

 

 

    

 

 

 

Property, plant and equipment, at cost:

     

Land

     521,806         519,775   

Buildings

     1,895,140         1,931,841   

Machinery and equipment

     4,384,255         4,388,157   

Construction in progress

     339,093         308,058   
  

 

 

    

 

 

 
     7,140,294         7,147,831   

Less accumulated depreciation and amortization

     4,321,862         4,342,350   
  

 

 

    

 

 

 

Net property, plant and equipment

     2,818,432         2,805,481   
  

 

 

    

 

 

 

Other assets

     660,132         659,465   
  

 

 

    

 

 

 

Total assets

     15,622,031         15,487,821   
  

 

 

    

 

 

 

 

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[1] Consolidated Balance Sheets – continued

 

     Yen (millions)  
     Mar. 31, 2014     Jun. 30, 2014  

Liabilities and Equity

    

Current liabilities:

    

Short-term debt

     1,319,344        1,463,290   

Current portion of long-term debt

     1,303,464        1,175,081   

Trade payables:

    

Notes

     28,501        27,735   

Accounts

     1,071,179        946,753   

Accrued expenses

     626,503        566,381   

Income taxes payable

     43,085        62,882   

Other current liabilities

     319,253        349,723   
  

 

 

   

 

 

 

Total current liabilities

     4,711,329        4,591,845   
  

 

 

   

 

 

 

Long-term debt, excluding current portion

     3,234,066        3,204,962   

Other liabilities

     1,563,238        1,522,845   
  

 

 

   

 

 

 

Total liabilities

     9,508,633        9,319,652   
  

 

 

   

 

 

 

Equity:

    

Honda Motor Co., Ltd. shareholders’ equity:

    

Common stock, authorized 7,086,000,000 shares; issued 1,811,428,430 shares on Mar. 31, 2014 and Jun. 30, 2014

     86,067        86,067   

Capital surplus

     171,117        171,117   

Legal reserves

     49,276        50,922   

Retained earnings

     6,431,682        6,536,898   

Accumulated other comprehensive income (loss), net

     (793,014     (840,841

Treasury stock, at cost 9,137,234 shares on Mar. 31, 2014 and 9,137,831 shares on Jun. 30, 2014

     (26,149     (26,151
  

 

 

   

 

 

 

Total Honda Motor Co., Ltd. shareholders’ equity

     5,918,979        5,978,012   
  

 

 

   

 

 

 

Noncontrolling interests

     194,419        190,157   
  

 

 

   

 

 

 

Total equity

     6,113,398        6,168,169   
  

 

 

   

 

 

 

Commitments and contingent liabilities

    
  

 

 

   

 

 

 

Total liabilities and equity

     15,622,031        15,487,821   
  

 

 

   

 

 

 

 

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

Consolidated Statements of Income

For the three months ended June 30, 2013 and 2014

 

     Yen (millions)  
     Three months
ended

Jun. 30, 2013
    Three months
ended

Jun. 30, 2014
 

Net sales and other operating revenue

     2,834,095        2,988,279   

Operating costs and expenses:

    

Cost of sales

     2,124,409        2,238,262   

Selling, general and administrative

     383,061        408,840   

Research and development

     141,662        143,134   
  

 

 

   

 

 

 
     2,649,132        2,790,236   
  

 

 

   

 

 

 

Operating income

     184,963        198,043   

Other income (expenses):

    

Interest income

     5,992        5,152   

Interest expense

     (2,974     (4,413

Other, net

     (15,946     31   
  

 

 

   

 

 

 
     (12,928     770   
  

 

 

   

 

 

 

Income before income taxes and equity in income of affiliates

     172,035        198,813   

Income tax expense:

    

Current

     43,866        78,567   

Deferred

     26,973        3,229   
  

 

 

   

 

 

 
     70,839        81,796   
  

 

 

   

 

 

 

Income before equity in income of affiliates

     101,196        117,017   

Equity in income of affiliates

     31,767        38,588   
  

 

 

   

 

 

 

Net income

     132,963        155,605   

Less: Net income attributable to noncontrolling interests

     10,464        9,093   
  

 

 

   

 

 

 

Net income attributable to Honda Motor Co., Ltd.

     122,499        146,512   
  

 

 

   

 

 

 
     Yen  

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

     67.97        81.29   

 

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Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2013 and 2014

 

     Yen (millions)  
     Three months
ended
Jun. 30, 2013
     Three months
ended
Jun. 30, 2014
 

Net income

     132,963         155,605   

Other comprehensive income (loss), net of tax:

     

Adjustments from foreign currency translation

     189,546         (55,326

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

     8,694         8,284   

Unrealized gains (losses) on derivative instruments, net

     587         —     

Pension and other postretirement benefits adjustments

     2,685         (4,726
  

 

 

    

 

 

 

Other comprehensive income (loss), net of tax

     201,512         (51,768
  

 

 

    

 

 

 

Comprehensive income (loss)

     334,475         103,837   

Less: Comprehensive income attributable to noncontrolling interests

     18,975         5,152   
  

 

 

    

 

 

 

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

     315,500         98,685   
  

 

 

    

 

 

 

 

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[3] Consolidated Statements of Cash Flows

 

     Yen (millions)  
     Three months
ended
Jun. 30, 2013
    Three months
ended
Jun. 30, 2014
 

Cash flows from operating activities:

    

Net income

     132,963        155,605   

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

    

Depreciation excluding property on operating leases

     108,313        117,312   

Depreciation of property on operating leases

     80,397        94,947   

Deferred income taxes

     26,973        3,229   

Equity in income of affiliates

     (31,767     (38,588

Dividends from affiliates

     5,735        7,156   

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

     4,623        3,528   

Impairment loss on property on operating leases

     615        385   

Loss (gain) on derivative instruments, net

     (21,038     627   

Decrease (increase) in assets:

    

Trade accounts and notes receivable

     92,404        92,913   

Inventories

     38,389        (3,515

Other current assets

     5,742        21,177   

Other assets

     1,022        (8,833

Increase (decrease) in liabilities:

    

Trade accounts and notes payable

     (101,821     (71,829

Accrued expenses

     (52,262     (48,100

Income taxes payable

     (2,065     20,876   

Other current liabilities

     46,310        37,092   

Other liabilities

     (12,524     (6,440

Other, net

     (17,819     (22,871
  

 

 

   

 

 

 

Net cash provided by operating activities

     304,190        354,671   
  

 

 

   

 

 

 

Cash flows from investing activities:

    

Increase in investments and advances

     (9,696     (7,821

Decrease in investments and advances

     14,132        8,310   

Payments for purchases of available-for-sale securities

     (16,453     (5,351

Proceeds from sales of available-for-sale securities

     1,597        3,568   

Payments for purchases of held-to-maturity securities

     (10     (357

Proceeds from redemptions of held-to-maturity securities

     1,707        16   

Capital expenditures

     (210,696     (194,225

Proceeds from sales of property, plant and equipment

     8,079        13,897   

Proceeds from insurance recoveries for damaged property, plant and equipment

     6,800        —     

Acquisitions of finance subsidiaries-receivables

     (745,780     (652,357

Collections of finance subsidiaries-receivables

     559,386        632,364   

Purchases of operating lease assets

     (271,474     (361,262

Proceeds from sales of operating lease assets

     164,237        175,340   

Other, net

     —          328   
  

 

 

   

 

 

 

Net cash used in investing activities

     (498,171     (387,550
  

 

 

   

 

 

 

 

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Table of Contents

[3] Consolidated Statements of Cash Flows – continued

 

     Yen (millions)  
     Three months
ended
Jun. 30, 2013
    Three months
ended
Jun. 30, 2014
 

Cash flows from financing activities:

    

Proceeds from short-term debt

     1,928,544        2,025,424   

Repayments of short-term debt

     (1,856,102     (1,876,723

Proceeds from long-term debt

     378,042        192,788   

Repayments of long-term debt

     (320,903     (303,734

Dividends paid

     (34,243     (39,650

Dividends paid to noncontrolling interests

     (5,889     (5,053

Sales (purchases) of treasury stock, net

     (6     (2

Other, net

     (8,399     (11,142
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     81,044        (18,092
  

 

 

   

 

 

 

Effect of exchange rate changes on cash and cash equivalents

     46,009        (10,296
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     (66,928     (61,267
  

 

 

   

 

 

 

Cash and cash equivalents at beginning of the year

     1,206,128        1,168,914   
  

 

 

   

 

 

 

Cash and cash equivalents at end of the period

     1,139,200        1,107,647   
  

 

 

   

 

 

 

 

- 17 -


Table of Contents

[4] Assumptions for Going Concern

None

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

None

 

- 18 -


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

 

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Table of Contents

1. Segment information based on products and services

As of and for the three months ended June 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

     396,870         2,196,591         165,396         75,238         2,834,095         —          2,834,095   

Intersegment

     —           4,404         2,592         2,718         9,714         (9,714     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     396,870         2,200,995         167,988         77,956         2,843,809         (9,714     2,834,095   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Segment income (loss)

     42,582         96,377         44,643         1,361         184,963         —          184,963   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Segment assets

     1,182,953         5,852,034         7,206,853         334,441         14,576,281         (377,965     14,198,316   

Depreciation and amortization

     12,145         92,554         80,755         3,256         188,710         —          188,710   

Capital expenditures

     13,026         165,344         272,287         3,611         454,268         —          454,268   
As of and for the three months ended June 30, 2014   
     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

     407,742         2,319,594         186,701         74,242         2,988,279         —          2,988,279   

Intersegment

     —           4,158         2,637         2,759         9,554         (9,554     —     
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     407,742         2,323,752         189,338         77,001         2,997,833         (9,554     2,988,279   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Segment income (loss)

     43,985         99,836         51,834         2,388         198,043         —          198,043   
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Segment assets

     1,207,203         6,317,177         8,009,019         365,019         15,898,418         (410,597     15,487,821   

Depreciation and amortization

     11,962         102,050         95,659         2,588         212,259         —          212,259   

Capital expenditures

     9,273         139,971         362,199         1,976         513,419         —          513,419   

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 285,682 million as of June 30, 2013 and JPY 253,224 million as of June 30, 2014 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 80,397 million for the three months ended June 30, 2013 and JPY 94,947 million for the three months ended June 30, 2014, respectively, of depreciation of property on operating leases.

 

4. Capital expenditure of Financial Services Business includes JPY 271,474 million for the three months ended June 30, 2013 and JPY 361,262 million for the three months ended June 30, 2014 respectively, of purchase of operating lease assets.

 

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Table of Contents

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

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

 

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

Net sales and other operating revenue:

                     

External customers

     433,538         1,405,502         158,869        598,369         237,817         2,834,095         —          2,834,095   

Transfers between geographic areas

     542,346         95,806         17,113        108,374         2,902         766,541         (766,541     —     
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     975,884         1,501,308         175,982        706,743         240,719         3,600,636         (766,541     2,834,095   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income (loss)

     62,187         71,858         (9,740     53,755         5,415         183,475         1,488        184,963   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Assets

     3,219,164         8,062,987         629,302        1,688,083         739,109         14,338,645         (140,329     14,198,316   

Long-lived assets

     1,186,448         2,679,540         126,393        466,100         156,205         4,614,686         —          4,614,686   
As of and for the three months ended June 30, 2014   
     Yen (millions)  
     Japan      North
America
     Europe     Asia      Other
Regions
     Total      Reconciling
Items
    Consolidated  

Net sales and other operating revenue:

                     

External customers

     547,782         1,453,788         174,248        604,731         207,730         2,988,279         —          2,988,279   

Transfers between geographic areas

     440,177         91,806         20,345        128,698         534         681,560         (681,560 )      —     
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Total

     987,959         1,545,594         194,593        733,429         208,264         3,669,839         (681,560 )      2,988,279   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Operating income (loss)

     62,149         67,513         (1,487 )      65,278         4,593         198,046         (3 )      198,043   
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

    

 

 

    

 

 

   

 

 

 

Assets

     3,443,404         8,780,234         679,266        1,999,224         748,039         15,650,167         (162,346 )      15,487,821   

Long-lived assets

     1,272,648         3,099,387         138,779        584,700         165,113         5,260,627         —          5,260,627   

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 285,682 million as of June 30, 2013 and JPY 253,224 million as of June 30, 2014 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.

 

- 21 -