Honda Motor : FY2021 1st Quarter Financial Results Reference Materials

August 5, 2020

Honda Motor Co., Ltd.

CONSOLIDATED FINANCIAL SUMMARY 1

FOR THE FISCAL FIRST QUARTER ENDED JUNE 30, 2020

Sales revenue Breakdown by geographical markets based on the location of the external customers

Yen (millions)		First Quarter Results
		3 months	3 months
		ended	ended
		Jun. 30, 2019	Jun. 30, 2020	change	%
Total	3,996,253	2,123,775	(1,872,478)	(46.9)
	Japan	516,147	406,277	(109,870)	(21.3)
	North America	2,212,046	1,061,781	(1,150,265)	(52.0)
	Europe	156,777	91,941	(64,836)	(41.4)
	Asia	901,648	498,571	(403,077)	(44.7)
	Other Regions	209,635	65,205	(144,430)	(68.9)
Motorcycle Business	533,018	274,222	(258,796)	(48.6)
	Japan	18,490	19,353	863	4.7
	North America	48,734	45,519	(3,215)	(6.6)
	Europe	47,821	34,767	(13,054)	(27.3)
	Asia	338,202	147,500	(190,702)	(56.4)
	Other Regions	79,771	27,083	(52,688)	(66.0)
Automobile Business	2,694,478	1,209,923	(1,484,555)	(55.1)
	Japan	393,796	284,084	(109,712)	(27.9)
	North America	1,537,960	514,445	(1,023,515)	(66.6)
	Europe	92,412	42,611	(49,801)	(53.9)
	Asia	550,088	338,093	(211,995)	(38.5)
	Other Regions	120,222	30,690	(89,532)	(74.5)
Financial Services Business	688,401	575,834	(112,567)	(16.4)
	Japan	84,167	92,496	8,329	9.9
	North America	591,521	472,868	(118,653)	(20.1)
	Europe	3,067	2,635	(432)	(14.1)
	Asia	3,293	3,282	(11)	(0.3)
	Other Regions	6,353	4,553	(1,800)	(28.3)
Life Creation and	80,356	63,796	(16,560)	(20.6)
Other Businesses
	Japan	19,694	10,344	(9,350)	(47.5)
	North America	33,831	28,949	(4,882)	(14.4)
	Europe	13,477	11,928	(1,549)	(11.5)
	Asia	10,065	9,696	(369)	(3.7)
	Other Regions	3,289	2,879	(410)	(12.5)

Note:

For detailed information of principal products and services, and functions of each segment, please refer to [6] Notes to Consolidated Financial Statements, [B] Segment Information in Fiscal First Quarter Financial Results.

August 5, 2020

Honda Motor Co., Ltd.

CONSOLIDATED FINANCIAL SUMMARY 2

FOR THE FISCAL FIRST QUARTER ENDED JUNE 30, 2020

Unaudited Consolidated Statements of Financial Position

Divided into Non-financial Services Businesses and Finance Subsidiaries

				Yen (millions)
				Mar. 31, 2020		Jun. 30, 2020
Assets
	< Non-financial Services Businesses >
		Current assets:	5,194,175		4,992,724
			Cash and cash equivalents	2,462,679		2,250,991
			Trade receivables	625,466		605,067
			Inventories	1,542,173		1,631,568
			Other current assets	563,857		505,098
		Non-current assets:	5,503,629		5,462,150
			Investments accounted for using the equity method	655,475		675,141
			Property, plant and equipment	3,036,156		2,976,469
			Intangible assets	751,266		762,919
			Other non-current assets	1,060,732		1,047,621
		Total assets	10,697,804		10,454,874
	< Finance Subsidiaries >
		Cash and cash equivalents	209,674		356,769
		Receivables from financial services, current	1,879,490		1,686,095
		Receivables from financial services, non-current	3,282,829		3,262,447
		Equipment on operating leases	4,626,063		4,587,433
		Other assets	284,080		309,483
		Total assets	10,282,136		10,202,227
	Reconciling items	(518,475)		(545,367)
Total assets	20,461,465		20,111,734
Liabilities and Equity
	< Non-financial Services Businesses >
		Current liabilities:	2,652,583		2,628,537
			Trade payables	945,271		775,779
			Financing liabilities	380,116		681,603
			Other current liabilities	1,327,196		1,171,155
		Non-current liabilities:	1,595,698		1,564,943
			Financing liabilities	151,897		149,814
			Retirement benefit liabilities	570,378		581,843
			Other non-current liabilities	873,423		833,286
		Total liabilities	4,248,281		4,193,480
	< Finance Subsidiaries >
		Financing liabilities, current	2,933,114		2,700,055
		Financing liabilities, non-current	4,069,354		4,158,990
		Other liabilities	1,178,926		1,202,981
		Total liabilities	8,181,394		8,062,026
	Reconciling items	(254,233)		(280,680)
	Total liabilities	12,175,442		11,974,826
	Equity attributable to owners of the parent	8,012,259		7,884,240
	Non-controlling interests	273,764		252,668
	Total equity	8,286,023		8,136,908
Total liabilities and equity	20,461,465		20,111,734

August 5, 2020

Honda Motor Co., Ltd.

CONSOLIDATED FINANCIAL SUMMARY 3

FOR THE FISCAL FIRST QUARTER ENDED JUNE 30, 2020

Unaudited Consolidated Statements of Cash Flows

Divided into Non-financial Services Businesses and Finance Subsidiaries

				Yen (millions)
	For the three months ended Jun. 30, 2019	For the three months ended Jun. 30, 2020
	Non-financial	Finance	Reconciling		Non-financial	Finance	Reconciling
	Services	Consolidated	Services	Consolidated
	Businesses	Subsidiaries	Items		Businesses	Subsidiaries	Items
Cash flows from operating activities:
Profit (loss) before income taxes	228,125	61,686	－	289,811	(147,848)	74,428	(13)	(73,433)
Depreciation, amortization and impairment losses	168,857	1,159	－	170,016	148,378	1,041	－	149,419
excluding equipment on operating leases
Share of profit of investments accounted for	(44,230)	－	－	(44,230)	(39,994)	－	－	(39,994)
using the equity method
Decrease (increase) in trade receivables	9,853	5,787	(5,721)	9,919	25,238	(6,848)	15,156	33,546
Decrease (increase) in inventories	(17,046)	4,116	－	(12,930)	(90,065)	(1,881)	－	(91,946)
Increase (decrease) in trade payables	(53,502)	956	(499)	(53,045)	(130,047)	(2,916)	(1,813)	(134,776)
Decrease (increase) in receivables from financial services	－	6,615	(33)	6,582	－	199,108	86	199,194
Decrease (increase) in equipment on operating leases	－	(53,086)	－	(53,086)	－	16,833	－	16,833
Dividends received	26,618	－	14	26,632	5,468	13	(13)	5,468
Other, net	(129,987)	(20,314)	6,220	(144,081)	(126,409)	3,429	(13,099)	(136,079)
Net cash provided by (used in) operating activities	188,688	6,919	(19)	195,588	(355,279)	283,207	304	(71,768)
Cash flows from investing activities:
Payments for additions to property, plant and equipment	(97,475)	60	－	(97,415)	(84,131)	41	－	(84,090)
Payments for additions to and internally developed	(57,312)	(860)	－	(58,172)	(49,162)	(989)	－	(50,151)
intangible assets
* Decrease (increase) in other financial assets	(2,301)	(3,510)	(12,226)	(18,037)	41,012	(2,287)	(19,265)	19,460
Other, net	5,309	175	－	5,484	5,266	195	－	5,461
Net cash provided by (used in) investing activities	(151,779)	(4,135)	(12,226)	(168,140)	(87,015)	(3,040)	(19,265)	(109,320)
Cash flows from financing activities:
* Proceeds from (repayment of) short-term	(6,253)	(275,408)	12,257	(269,404)	304,902	(163,764)	18,916	160,054
financing liabilities
* Proceeds from long-term financing liabilities	437	494,435	－	494,872	(39)	405,043	－	405,004
* Repayments of long-term financing liabilities	(6,491)	(213,238)	2	(219,727)	(2,838)	(373,982)	32	(376,788)
Dividends paid to owners of the parent	(49,287)	－	－	(49,287)	(48,363)	－	－	(48,363)
Other, net	(39,949)	(326)	(14)	(40,289)	(27,673)	(345)	13	(28,005)
Net cash provided by (used in) financing activities	(101,543)	5,463	12,245	(83,835)	225,989	(133,048)	18,961	111,902
Effect of exchange rate changes on cash and	(41,297)	(5,249)	－	(46,546)	4,617	(24)	－	4,593
cash equivalents
Net change in cash and cash equivalents	(105,931)	2,998	－	(102,933)	(211,688)	147,095	－	(64,593)
Cash and cash equivalents at beginning of period	2,381,470	112,651	－	2,494,121	2,462,679	209,674	－	2,672,353
Cash and cash equivalents at end of period	2,275,539	115,649	－	2,391,188	2,250,991	356,769	－	2,607,760

Note:

Non-financial services businesses provide loans to finance subsidiaries. These cash flows are included in the decrease (increase) in other financial assets, proceeds from (repayment of) short-term financing liabilities, proceeds from and repayments of long-term financing liabilities (marked by *). The amount of the loans to finance subsidiaries is a JPY 12,226 million decrease for the fiscal three months ended June 30, 2019, and a JPY 19,265 million decrease for the fiscal three months ended June 30, 2020, respectively.