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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  1. 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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  1. 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.