August 4, 2021
HONDA MOTOR CO., LTD. REPORTS
CONSOLIDATED FINANCIAL RESULTS
FOR THE FISCAL FIRST QUARTER
ENDED JUNE 30, 2021
Tokyo, August 4, 2021--- Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal first quarter ended June 30, 2021.
First Quarter Results
While the global economy which had slowed down due to the spread of coronavirus disease 2019 (COVID-19) has continued to be on a recovery track, it has still continued to affect Honda's consolidated financial results for the three months ended June 30, 2021.
Resulting from travel restriction measures in certain countries or regions, the production activities of some of Honda's production bases were also affected mainly due to restrictions on employees' commute to the workplaces and delays in the supply of parts within the supply chain. Some dealers were obliged to suspend business, shorten business hours, or reduce services such as inspections and repairs. However, there is no significant impact on Honda's consolidated financial results for the three months ended June 30, 2021.
Honda's consolidated sales revenue for the three months ended June 30, 2021 increased by 68.7%, to JPY 3,583.8 billion from the same period last year, due mainly to increased sales revenue in all business operations. Operating profit was JPY 243.2 billion, an increase of JPY 356.9 billion from the same period last year, due mainly to an increase in profit attributable to increased sales revenue and model mix. Profit before income taxes was JPY 311.3 billion, an increase of JPY 384.7 billion from the same period last year. Profit for the period attributable to owners of the parent was JPY 222.5 billion, an increase of JPY 303.3 billion from the same period last year.
Earnings per share attributable to owners of the parent for the period amounted to JPY 128.87, an increase of JPY
175.71 from the corresponding period last year. One Honda American Depository Share represents one common
share.
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Consolidated Statements of Financial Position for the Fiscal First Quarter Ended June 30, 2021
Total assets increased by JPY 61.8 billion, to JPY 21,982.8 billion from March 31, 2021 due mainly to increased inventories as well as positive foreign currency translation effects, which was partially offset by decreased cash and cash equivalents. Total liabilities decreased by JPY 169.5 billion, to JPY 12,378.6 billion from March 31, 2021 due mainly to a decrease in trade payables as well as accrued expenses. Total equity increased by JPY 231.3 billion, to JPY 9,604.2 billion from March 31, 2021 due mainly to increased retained earnings attributable to profit for the period.
Consolidated Statements of Cash Flows for the Fiscal First Quarter Ended June 30, 2021
Consolidated cash and cash equivalents on June 30, 2021 decreased by JPY 254.5 billion from March 31, 2021, to JPY 2,503.4 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the same period last year, are as follows:
Net cash provided by operating activities amounted to JPY 7.2 billion of cash inflows. Cash inflows from operating activities increased by JPY 79.0 billion from the same period last year, due mainly to increased cash received from customers, which was partially offset by increased payments for parts and raw materials.
Net cash used in investing activities amounted to JPY 128.7 billion of cash outflows. Cash outflows from investing activities increased by JPY 19.3 billion from the same period last year, due mainly to increased payments for acquisitions of other financial assets, which was partially offset by decreased payments for additions to and internally developed intangible assets.
Net cash used in financing activities amounted to JPY 140.8 billion of cash outflows. Cash outflows from financing activities increased by JPY 252.8 billion from the same period last year, due mainly to decreased proceeds from financing liabilities and increased dividends paid.
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Forecasts for the Fiscal Year Ending March 31, 2022
In regard to the forecasts of the financial results for the fiscal year ending March 31, 2022, Honda projects consolidated results to be as shown below:
Fiscal year ending March 31, 2022 | Yen (billions) | Changes from FY 2021 |
Sales revenue | 15,450.0 | +17.3% |
Operating profit | 780.0 | +18.1% |
Profit before income taxes | 1,000.0 | +9.4% |
Profit for the year | 715.0 | +2.8% |
Profit for the year attributable to owners of the parent | 670.0 | +1.9% |
Yen | ||
Earnings per share attributable to owners of the parent | ||
Basic and diluted | 390.27 |
Note: The forecasts are based on the assumption that the average exchange rates for the Japanese yen to the U.S. dollar
will be JPY 106 for the full year ending March 31, 2022.
The reasons for the increases or decreases in the forecasts of the operating profit, and profit before income taxes for the fiscal year ending March 31, 2022 from the previous year are as follows.
Yen (billions) | |
Revenue, model mix, etc. | + 315.7 |
Cost reduction, the effect of raw material cost fluctuations, etc. | - 10.0 |
SG&A expenses | - 190.0 |
R&D expenses | - 79.0 |
Currency effect | + 83.0 |
Operating profit compared with fiscal year ended March 31, 2021 | + 119.7 |
Share of profit of investments accounted for using the equity method | - 52.7 |
Finance income and finance costs | + 18.8 |
Profit before income taxes compared with fiscal year ended March 31, 2021 | + 85.9 |
Dividend per Share of Common Stock
The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2022, is JPY 110 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 the actual results of the Company could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in the principal markets of the Company, its consolidated subsidiaries and its affiliates accounted for by the equity-method, and fluctuation of foreign exchange rates, as well as other factors detailed from time to time. The various factors for increases and decreases in profit have been classified in accordance with a method that Honda considers reasonable.
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-
Condensed Consolidated Statements of Financial Position
March 31, 2021 and June 30, 2021
Yen (millions) | |||
Mar. 31, 2021 | Jun. 30, 2021 | ||
Assets | |||
Current assets: | |||
Cash and cash equivalents | 2,758,020 | 2,503,454 | |
Trade receivables | 801,814 | 703,623 | |
Receivables from financial services | 1,794,654 | 1,672,560 | |
Other financial assets | 295,307 | 274,957 | |
Inventories | 1,545,600 | 1,736,099 | |
Other current assets | 383,696 | 379,036 | |
Total current assets | 7,579,091 | 7,269,729 | |
Non-current assets: | |||
Investments accounted for using the equity method | 891,002 | 960,595 | |
Receivables from financial services | 3,619,896 | 3,734,419 | |
Other financial assets | 628,533 | 733,355 | |
Equipment on operating leases | 4,919,916 | 5,018,034 | |
Property, plant and equipment | 3,021,514 | 2,987,702 | |
Intangible assets | 818,763 | 819,488 | |
Deferred tax assets | 99,552 | 108,540 | |
Other non-current assets | 342,763 | 350,974 | |
Total non-current assets | 14,341,939 | 14,713,107 | |
Total assets | 21,921,030 | 21,982,836 | |
Liabilities and Equity | |||
Current liabilities: | |||
Trade payables | 1,088,061 | 1,021,390 | |
Financing liabilities | 3,005,624 | 3,266,072 | |
Accrued expenses | 415,106 | 337,264 | |
Other financial liabilities | 182,145 | 171,109 | |
Income taxes payable | 47,793 | 52,845 | |
Provisions | 362,151 | 323,286 | |
Other current liabilities | 614,577 | 587,405 | |
Total current liabilities | 5,715,457 | 5,759,371 | |
Non-current liabilities: | |||
Financing liabilities | 4,715,361 | 4,453,295 | |
Other financial liabilities | 280,809 | 277,594 | |
Retirement benefit liabilities | 358,532 | 366,488 | |
Provisions | 278,890 | 273,102 | |
Deferred tax liabilities | 842,001 | 883,949 | |
Other non-current liabilities | 357,141 | 364,818 | |
Total non-current liabilities | 6,832,734 | 6,619,246 | |
Total liabilities | 12,548,191 | 12,378,617 | |
Equity: | |||
Common stock | 86,067 | 86,067 | |
Capital surplus | 172,049 | 171,751 | |
Treasury stock | (273,786) | (273,396) | |
Retained earnings | 8,901,266 | 9,030,414 | |
Other components of equity | 196,710 | 310,562 | |
Equity attributable to owners of the parent | 9,082,306 | 9,325,398 | |
Non-controlling interests | 290,533 | 278,821 | |
Total equity | 9,372,839 | 9,604,219 | |
Total liabilities and equity | 21,921,030 | 21,982,836 |
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- Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Comprehensive Income
Condensed Consolidated Statements of Income
For the three months ended June 30, 2020 and 2021
Yen (millions) | |||||
Three months | Three months | ||||
ended | ended | ||||
Jun. 30, 2020 | Jun. 30, 2021 | ||||
Sales revenue | 2,123,775 | 3,583,870 | |||
Operating costs and expenses: | |||||
Cost of sales | (1,769,299) | (2,846,420) | |||
Selling, general and administrative | (305,253) | (317,014) | |||
Research and development | (162,914) | (177,226) | |||
Total operating costs and expenses | (2,237,466) | (3,340,660) | |||
Operating profit (loss) | (113,691) | 243,210 | |||
Share of profit of investments accounted for using the equity method | 39,994 | 55,931 | |||
Finance income and finance costs: | |||||
Interest income | 4,595 | 5,200 | |||
Interest expense | (1,833) | (2,925) | |||
Other, net | (2,498) | 9,944 | |||
Total finance income and finance costs | 264 | 12,219 | |||
Profit (loss) before income taxes | (73,433) | 311,360 | |||
Income tax expense | (6,546) | (73,640) | |||
Profit (loss) for the period | (79,979) | 237,720 | |||
Profit (loss) for the period attributable to: | |||||
Owners of the parent | (80,871) | 222,512 | |||
Non-controlling interests | 892 | 15,208 | |||
Yen | |||||
Earnings (loss) per share attributable to owners of the parent | |||||
Basic and diluted | (46.84) | 128.87 |
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Honda Motor Co. Ltd. published this content on 04 August 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 04 August 2021 06:05:02 UTC.