HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Condensed Consolidated Interim Financial Statements
December 31, 2021
HONDA MOTOR CO., LTD. AND SUBSIDIARIES
Part I. Corporate Information
Section 1. Corporate Overview
1. History of Changes in Major Business Indices
Fiscal Year
97th
for the nine months (three months) ended December 31, 2020
98th | |
for the nine months | Previous fiscal year |
(three months) ended | |
December 31, 2021 | (97th) |
Accounting Period | From April 1, 2020 | From April 1, 2021 | From April 1, 2020 | ||||
to December 31, 2020 | to December 31, 2021 | to March 31, 2021 | |||||
Sales revenue | (Millions of yen) | 9,546,713 | 10,677,013 | 13,170,519 | |||
(3,771,569) | (3,688,785) | ||||||
Profit before income taxes | (Millions of yen) | 658,707 | 845,238 | 914,053 | |||
Profit for the period (year) attributable to owners of the | (Millions of yen) | 444,102 | 582,169 | 657,425 | |||
parent | (284,051) | (192,960) | |||||
Comprehensive income for the period (year) attributable | (Millions of yen) | 394,202 | 918,110 | 1,214,757 | |||
to owners of the parent | |||||||
Equity attributable to owners of the parent | (Millions of yen) | 8,306,603 | 9,770,862 | 9,082,306 | |||
Total assets | (Millions of yen) | 20,780,203 | 22,249,779 | 21,921,030 | |||
Basic earnings per share attributable to owners of the | (Yen) | 257.21 | 337.92 | 380.75 | |||
parent | (164.51) | (112.42) | |||||
Diluted earnings per share attributable to owners of the | (Yen) | 257.21 | 337.92 | 380.75 | |||
parent | |||||||
Ratio of Honda Motor Co., Ltd. shareholders' equity | (%) | 40.0 | 43.9 | 41.4 | |||
Cash flows from operating activities | (Millions of yen) | 826,192 | 947,804 | 1,072,379 | |||
Cash flows used in investing activities | (Millions of yen) | (663,676) | (381,779) | (796,881) | |||
Cash flows from (used in) financing activities | (Millions of yen) | 81,511 | (692,138) | (283,980) | |||
Cash and cash equivalents at end of period (year) | (Millions of yen) | 2,873,289 | 2,690,451 | 2,758,020 | |||
*1 | The above indicators are based on the condensed consolidated interim financial statements and consolidated financial statements prepared in accordance with International Financial | ||||||
Reporting Standards ("IFRS").
*2 | As the Company has prepared the condensed consolidated interim financial statements, the History of Changes in Major Business Indices of the reporting entity is not provided. |
*3 | Sales revenue does not include consumption taxes. |
2. Overview of Business
There have been no material changes to the business of the Company, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method for the nine months ended December 31, 2021. Honda of the U.K. Manufacturing Ltd. and Honda Turkiye A.S. ceased production of automobiles for the three months ended September 30, 2021.
In addition, changes in major consolidated subsidiaries for the nine months ended December 31, 2021 are as follows:
Motorcycle Business, Automobile Business, Life Creation and Other Businesses
American Honda Motor Co., Inc. integrated certain functions of Honda R&D Americas, Inc. for the three months ended June 30, 2021.
Automobile Business
Honda of America Mfg., Inc. merged with Honda Manufacturing of Alabama, LLC, Honda Manufacturing of Indiana, LLC, Honda Transmission Mfg. of America, Inc., Honda R&D Americas, Inc. and three other companies and changed its name to "Honda Development and Manufacturing of America, LLC" for the three months ended June 30, 2021.
Section 2. Business
1. Risk Factors
There were no new material matters to the risk factors for the nine months ended December 31, 2021.
In addition, there were no material changes to the risk factors described in the annual securities report for the previous fiscal year for the nine months ended December 31, 2021.
2. Management's Analysis of Financial Position, Results of Operations and Cash Flows
(1) Financial 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 nine months ended December 31, 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 nine months ended December 31, 2021.
Honda's consolidated sales revenue for the nine months ended December 31, 2021 increased by 11.8%, to ¥10,677.0 billion from the same period last year, due mainly to increased sales revenue in Motorcycle business and Financial services business operations as well as positive foreign currency translation effects. Operating profit increased by 50.3%, to ¥671.6 billion from the same period last year, due mainly to an increase in profit attributable to increased sales revenue and model mix as well as decreased selling, general and administrative expenses. Profit before income taxes increased by 28.3%, to ¥845.2 billion from the same period last year. Profit for the period attributable to owners of the parent increased by 31.1%, to ¥582.1 billion from the same period last year.
Business Segments
Motorcycle Business
For the nine months ended December 31, 2020 and 2021
Units (thousands) | ||||||||||
Honda Group Unit Sales* | Consolidated Unit Sales* | |||||||||
Nine months | Nine months | Nine months | Nine months | |||||||
ended | ended | Change | % | ended | ended | Change | % | |||
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | |||||||
Motorcycle Business | 10,591 | 12,775 | 2,184 | 20.6 | 7,263 | 7,964 | 701 | 9.7 | ||
Japan | 155 | 180 | 25 | 16.1 | 155 | 180 | 25 | 16.1 | ||
North America | 240 | 332 | 92 | 38.3 | 240 | 332 | 92 | 38.3 | ||
Europe | 159 | 240 | 81 | 50.9 | 159 | 240 | 81 | 50.9 | ||
Asia | 9,257 | 10,902 | 1,645 | 17.8 | 5,929 | 6,091 | 162 | 2.7 | ||
Other Regions | 780 | 1,121 | 341 | 43.7 | 780 | 1,121 | 341 | 43.7 |
- Honda Group Unit Sales is the total unit sales of completed motorcycle, ATV and side-by-side products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.
Sales revenue from external customers increased by 27.3%, to ¥1,602.0 billion from the same period last year, due mainly to increased consolidated unit sales. Operating profit increased by 52.5%, to ¥232.3 billion from the same period last year, due mainly to an increase in profit attributable to increased sales volume and model mix.
Automobile Business
For the nine months ended December 31, 2020 and 2021
Units (thousands) | |||||||||||
Honda Group Unit Sales* | Consolidated Unit Sales* | ||||||||||
Nine months | Nine months | Nine months | Nine months | ||||||||
ended | ended | Change | % | ended | ended | Change | % | ||||
Dec. 31, 2020 | Dec. 31, 2021 | Dec. 31, 2020 | Dec. 31, 2021 | ||||||||
Automobile Business | 3,425 | 3,000 | (425) | (12.4) | 1,899 | 1,792 | (107) | (5.6) | |||
Japan | 418 | 385 | (33) | (7.9) | 366 | 335 | (31) | (8.5) | |||
North America | 1,098 | 978 | (120) | (10.9) | 1,098 | 978 | (120) | (10.9) | |||
Europe | 77 | 76 | (1) | (1.3) | 77 | 76 | (1) | (1.3) | |||
Asia | 1,741 | 1,465 | (276) | (15.9) | 267 | 307 | 40 | 15.0 | |||
Other Regions | 91 | 96 | 5 | 5.5 | 91 | 96 | 5 | 5.5 |
- Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated sales revenue 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 and others by our Japanese finance subsidiaries and provided through our consolidated subsidiaries are accounted for as operating leases in conformity with IFRS and are not included in consolidated sales revenue to the external customers in our Automobile business. Accordingly, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our Automobile business.
Sales revenue from external customers increased by 7.4%, to ¥6,668.6 billion from the same period last year, due mainly to positive foreign currency translation effects, which was partially offset by decreased consolidated unit sales. Operating profit increased by 258.3%, to ¥188.5 billion from the same period last year, due mainly to decreased selling, general and administrative expenses.
Financial Services Business
Sales revenue from external customers increased by 14.1%, to ¥2,114.3 billion from the same period last year, due mainly to an increase in revenues on disposition of lease vehicles and operating lease revenues. Operating profit increased by 3.0%, to ¥258.1 billion from the same period last year, due mainly to an increase in profit attributable to increased sales revenue.
Life Creation and Other Businesses
For the nine months ended December 31, 2020 and 2021
Units (thousands) | |||||||
Honda Group Unit Sales / Consolidated Unit Sales* | |||||||
Nine months | Nine months | ||||||
ended | ended | Change | % | ||||
Dec. 31, 2020 | Dec. 31, 2021 | ||||||
Life Creation Business | 3,855 | 4,500 | 645 | 16.7 | |||
Japan | 233 | 266 | 33 | 14.2 | |||
North America | 1,815 | 2,092 | 277 | 15.3 | |||
Europe | 567 | 762 | 195 | 34.4 | |||
Asia | 1,012 | 1,073 | 61 | 6.0 | |||
Other Regions | 228 | 307 | 79 | 34.6 |
- Honda Group Unit Sales is the total unit sales of completed power products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed power products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed power products of Honda and its consolidated subsidiaries. In Life creation business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales since no affiliate and joint venture accounted for using the equity method were involved in the sale of Honda power products.
Sales revenue from external customers increased by 28.5%, to ¥291.9 billion from the same period last year, due mainly to increased consolidated unit sales in Life creation business. Operating loss was ¥7.4 billion, an improvement of ¥1.1 billion from the same period last year, due mainly to decreased operating costs in Other businesses. In addition, operating loss of aircraft and aircraft engines included in the Life creation and other businesses was ¥23.6 billion, an improvement of ¥0.8 billion from the same period last year.
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Honda Motor Co. Ltd. published this content on 25 February 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 25 February 2022 07:11:07 UTC.