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6-K

Honda Motor Co Ltd (HMC)

6-K 2024-08-07 For: 2024-08-07
View Original
Added on April 11, 2026
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 AUGUST 2024

COMMISSION FILE NUMBER: 1-07628

HONDA GIKEN KOGYO KABUSHIKI KAISHA

(Name of registrant)

HONDAMOTOR 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 ☒ 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): ☐

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Contents

Exhibit 1:

Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal first quarter ended June 30, 2024.

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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/ Sumihiro Takahashi
Sumihiro Takahashi
General Manager
Finance Division
Honda Motor Co., Ltd.

Date: August 7, 2024

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Consolidated Financial Results for the Fiscal First Quarter EndedJune 30, 2024 (IFRS)

August 7, 2024

Company name :  Honda Motor Co., Ltd.
Listing :  Tokyo Stock Exchange
Securities code :  7267
URL :  https://global.honda/en/investors/
Representative :  Toshihiro Mibe, Director, President and Representative Executive<br>Officer
Inquiries :  Masao Kawaguchi, Head of Accounting and Finance Supervisory Unit<br><br><br>Tel. +81-3-3423-1111
Scheduled date to commence dividend payments :  —
Supplemental materials prepared for consolidated financial results :  Yes
Holdings of financial results meeting :  Yes

(Amounts are rounded to the nearest million yen)

1. Consolidated Financial Results for the Three Months Ended June 30, 2024 (from April 1, 2024 to June 30, 2024)

(1) Consolidated operating results (for the three months ended June 30) (% of change from the same period of the previous fiscal year)
Sales revenue Operating profit Profit before<br>income taxes Profit for the period Profit for the period<br>attributable to owners<br>of the parent Comprehensive<br>income for the period
--- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- --- ---
Three months ended Yen (millions) % Yen (millions) % Yen (millions) % Yen (millions) % Yen (millions) % Yen (millions) %
June 30, 2024 5,404,858 16.9 484,705 22.9 559,474 8.7 414,327 8.2 394,660 8.7 947,527 -5.9
June 30, 2023 4,624,996 20.8 394,447 77.5 514,924 116.9 382,945 134.1 363,069 143.3 1,006,423 15.6
Earnings per share attributable<br><br><br>to owners of the parent<br> <br>-<br>Basic Earnings per share attributable<br><br><br>to owners of the parent<br> <br>-<br>Diluted
--- --- ---
Three months ended Yen Yen
June 30, 2024 81.81 81.81
June 30, 2023 73.02 73.02

Explanatory notes:

1. Basic and diluted earnings per share are calculated based on the profit for the period attributable to owners of<br>the parent.
2. As of the effective date of October 1, 2023, the Company implemented a three-for-one stock split of its common stock to shareholders as of the record date of September 30, 2023. Basic and diluted earnings per share attributable to owners of the parent are calculated based<br>on the assumption that the stock split had been implemented at the beginning of the previous fiscal year.
--- ---

(2) Consolidated financial position

Total assets Total equity Equity attributable to owners<br>of the parent Ratio of equity attributable to<br>owners of the parent to<br>total assets
As of Yen (millions) Yen (millions) Yen (millions) %
June 30, 2024 31,311,972 13,697,678 13,411,175 42.8
March 31, 2024 29,774,150 13,005,872 12,696,995 42.6
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2. Dividends

Annual dividends per share
First<br>quarter-end Second<br>quarter-end Third<br>quarter-end Fiscal<br>year-end Total
Yen Yen Yen Yen Yen
Fiscal year ended March 31, 2024 87.00 39.00
Fiscal year ending March 31, 2025
Fiscal year ending March 31, 2025 (forecast) 34.00 34.00 68.00

Explanatory notes:

1. Revisions to the forecast of dividends most recently announced: None
2. As of the effective date of October 1, 2023, the Company implemented a three-for-one stock split of its common stock to shareholders as of the record date of September 30, 2023. The year-end dividend per share for the fiscal year<br>ended March 31, 2024 is based on the number of shares after the stock split and the total annual dividend is disclosed as “ – ”. Based on the number of shares prior to the stock split, the<br>year-end dividend and the total annual dividend for the fiscal year ended March 31, 2024 are expected to be JPY 117.00 per share and JPY 204.00 per share, respectively.
--- ---

3. Forecast of Consolidated Financial Results for the Fiscal Year Ending March 31, 2025 (from April 1, 2024 to March 31, 2025)

(% of change from the previous fiscal year)

Sales revenue Operating profit Profit before<br>income taxes Profit for the year Profit for the year<br>attributable to owners<br>of the parent Earnings per share<br>attributable to owners<br>of the parent
Yen (millions) % Yen (millions) % Yen (millions) % Yen (millions) % Yen (millions) % Yen
Full-year 20,300,000 -0.6 1,420,000 2.8 1,480,000 -9.9 1,070,000 -9.5 1,000,000 -9.7 210.82

Explanatory note:

Revisions to the forecast of consolidated financial results most recently announced: Yes

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*Explanatory notes

(1) Significant changes in the scope of consolidation during the period: None

Newly included: - companies (Company name: -)
Excluded: - companies (Company name: -)

(2) Changes in accounting policies and changes in accounting estimates

(i) Changes in accounting policies required by IFRS : None
(ii) Changes in accounting policies due to other reason : None
(iii) Changes in accounting estimates : None

(3) Number of issued shares (common shares)

(i) Number of issued shares at the end of the period (including treasury stock)
As of June 30, 2024 5,280,000,000 shares
--- ---
As of March 31, 2024 5,280,000,000 shares
(ii) Number of treasury stock at the end of the period
--- ---
As of June 30, 2024 457,569,637 shares
--- ---
As of March 31, 2024 451,092,624 shares
(iii) Average number of shares outstanding during the period
--- ---
Three months ended June 30, 2024 4,823,906,086 shares
--- ---
Three months ended June 30, 2023 4,972,297,953 shares

As of the effective date of October 1, 2023, the Company implemented a three-for-one stock split of its common stock to shareholders as of the record date of September 30, 2023. Number of issued shares at the end of the period (including treasury stock), number of treasury stock at the end of the period and average number of shares outstanding during the period are calculated based on the assumption that the stock split had been implemented at the beginning of the previous fiscal year.

* Review of the Japanese-language originals of the attached consolidated quarterly financial statements bycertified public accountants or an audit firm : None
* Proper use of earning forecasts, and other special matters
--- ---

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.

Honda’s American Depositary Shares are listed and traded on the New York Stock Exchange. One American Depositary Share represents three common shares.

For supplemental materials prepared for consolidated financial results and other information, please refer to Honda’s Investor Relations website (URL https://global.honda/en/investors/).

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TABLE OF CONTENTS

Consolidated Financial Results for the Fiscal First Quarter Ended June 30, 2024

1. Overview of Consolidated Financial Results 2
2. Condensed Consolidated Interim Financial Statements and Notes to Condensed Consolidated<br>Interim Financial Statements 3
[1] Condensed Consolidated Statements of Financial Position 3
[2] Condensed Consolidated Statements of Income and<br>Condensed Consolidated Statements of<br>Comprehensive Income 4
Condensed Consolidated Statements of Income<br>For the three months ended June 30, 2023 and<br>2024 4
Condensed Consolidated Statements of Comprehensive Income<br>For the three months ended<br>June 30, 2023 and 2024 5
[3] Condensed Consolidated Statements of Changes in Equity 6
[4] Condensed Consolidated Statements of Cash Flows 7
[5] Assumptions for Going Concern 8
[6] Notes to Condensed Consolidated Interim Financial Statements 8

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1. Overview of Consolidated Financial Results

Consolidated Operating Results

Honda’s consolidated sales revenue for the three months ended June 30, 2024 increased by 16.9%, to JPY 5,404.8 billion from the same period last year, due mainly to increased sales revenue in Motorcycle business and Automobile business as well as positive foreign currency translation effects. Operating profit increased by 22.9%, to JPY 484.7 billion from the same period last year, due mainly to increased profit attributable to price and cost impacts, which was partially offset by increased expenses. Profit before income taxes increased by 8.7%, to JPY 559.4 billion from the same period last year. Profit for the period attributable to owners of the parent increased by 8.7%, to JPY 394.6 billion from the same period last year.

Consolidated Statements of Financial Position

Total assets as of June 30, 2024 increased by JPY 1,537.8 billion, to JPY 31,311.9 billion from March 31, 2024 due mainly to increased receivables from financial service as well as positive foreign currency translation effects. Total liabilities increased by JPY 846.0 billion, to JPY 17,614.2 billion from March 31, 2024 due mainly to increased financing liabilities as well as positive foreign currency translation effects, which was partially offset by decreased trade payables. Total equity increased by JPY 691.8 billion, to JPY 13,697.6 billion from March 31, 2024 due mainly to increased retained earnings attributable to profit for the period as well as positive foreign currency translation effects.

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2. Condensed Consolidated Interim Financial Statements and Notes to Condensed Consolidated InterimFinancial Statements

[1] Condensed Consolidated Statements of Financial Position

March 31, 2024 and June 30, 2024

Yen (millions)
Mar. 31, 2024 Jun. 30, 2024
Assets
Current assets:
Cash and cash equivalents 4,954,565 **** 4,977,263 ****
Trade receivables 1,240,090 **** 1,143,580 ****
Receivables from financial services 2,558,594 **** 2,776,541 ****
Other financial assets 229,583 **** 192,827 ****
Inventories 2,442,969 **** 2,675,607 ****
Other current assets 446,763 **** 519,421 ****
Total current assets 11,872,564 **** 12,285,239 ****
Non-current assets:
Investments accounted for using the equity method 1,206,968 **** 1,248,365 ****
Receivables from financial services 5,616,676 **** 6,200,507 ****
Other financial assets 968,142 **** 1,020,828 ****
Equipment on operating leases 5,202,768 **** 5,541,058 ****
Property, plant and equipment 3,234,413 **** 3,294,674 ****
Intangible assets 999,689 **** 1,043,662 ****
Deferred tax assets 170,856 **** 152,676 ****
Other non-current assets 502,074 **** 524,963 ****
Total non-current assets 17,901,586 **** 19,026,733 ****
Total assets 29,774,150 **** 31,311,972 ****
Liabilities and Equity
Current liabilities:
Trade payables 1,609,836 **** 1,474,570 ****
Financing liabilities 4,105,590 **** 4,889,382 ****
Accrued expenses 638,319 **** 595,591 ****
Other financial liabilities 340,858 **** 372,129 ****
Income taxes payable 157,410 **** 138,430 ****
Provisions 566,722 **** 578,689 ****
Other current liabilities 904,757 **** 918,723 ****
Total current liabilities 8,323,492 **** 8,967,514 ****
Non-current liabilities:
Financing liabilities 6,057,967 **** 6,162,648 ****
Other financial liabilities 316,919 **** 314,803 ****
Retirement benefit liabilities 284,844 **** 304,119 ****
Provisions 385,001 **** 362,558 ****
Deferred tax liabilities 855,067 **** 921,241 ****
Other non-current liabilities 544,988 **** 581,411 ****
Total non-current liabilities 8,444,786 **** 8,646,780 ****
Total liabilities 16,768,278 **** 17,614,294 ****
Equity:
Common stock 86,067 **** 86,067 ****
Capital surplus 205,073 **** 204,951 ****
Treasury stock (550,808 ) **** (562,991 )
Retained earnings 10,644,213 **** 10,850,417 ****
Other components of equity 2,312,450 **** 2,832,731 ****
Equity attributable to owners of the parent 12,696,995 **** 13,411,175 ****
Non-controlling interests 308,877 **** 286,503 ****
Total equity 13,005,872 **** 13,697,678 ****
Total liabilities and equity 29,774,150 **** 31,311,972 ****

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[2] Condensed Consolidated Statements of Income and Condensed Consolidated Statements of ComprehensiveIncome

Condensed Consolidated Statements of Income

For the three months ended June 30, 2023 and 2024

Yen (millions)
Three months<br>ended<br>Jun. 30, 2023 Three monthsendedJun. 30, 2024
Sales revenue 4,624,996 **** 5,404,858 ****
Operating costs and expenses:
Cost of sales (3,627,891 ) **** (4,208,475 )
Selling, general and administrative (404,703 ) **** (495,796 )
Research and development (197,955 ) **** (215,882 )
Total operating costs and expenses (4,230,549 ) **** (4,920,153 )
Operating profit 394,447 **** 484,705 ****
Share of profit of investments accounted for using the equity method 42,853 **** 1,434 ****
Finance income and finance costs:
Interest income 32,855 **** 50,089 ****
Interest expense (9,042 ) **** (12,219 )
Other, net 53,811 **** 35,465 ****
Total finance income and finance costs 77,624 **** 73,335 ****
Profit before income taxes 514,924 **** 559,474 ****
Income tax expense (131,979 ) **** (145,147 )
Profit for the period 382,945 **** 414,327 ****
Profit for the period attributable to:
Owners of the parent 363,069 **** 394,660 ****
Non-controlling interests 19,876 **** 19,667 ****
Yen
Earnings per share attributable to owners of the parent
Basic and diluted 73.02 **** 81.81 ****

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Condensed Consolidated Statements of Comprehensive Income

For the three months ended June 30, 2023 and 2024

Yen (millions)
Three months<br>ended<br>Jun. 30, 2023 Three monthsendedJun. 30, 2024
Profit for the period 382,945 **** 414,327 ****
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans 6 **** (5 )
Net changes in revaluation of financial assets measured at fair value through other comprehensive<br>income 15,709 **** (5,332 )
Share of other comprehensive income of investments accounted for using the equity method 2,825 **** (280 )
Items that may be reclassified subsequently to profit or loss
Net changes in revaluation of financial assets measured at fair value through other comprehensive<br>income (155 ) **** (31 )
Exchange differences on translating foreign operations 581,244 **** 489,146 ****
Share of other comprehensive income of investments accounted for using the equity method 23,849 **** 49,702 ****
Total other comprehensive income, net of tax 623,478 **** 533,200 ****
Comprehensive income for the period 1,006,423 **** 947,527 ****
Comprehensive income for the period attributable to:
Owners of the parent 972,537 **** 914,903 ****
Non-controlling interests 33,886 **** 32,624 ****

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[3] Condensed Consolidated Statements of Changes in Equity

For the three months ended June 30, 2023

Yen (millions)
Equity attributable to owners of the parent Non-controlling<br>interests Total<br>equity
Common<br>stock Capital<br>surplus Treasury<br>stock Retained<br>earnings Other<br>components<br>of equity Total
Balance as of April 1, 2023 86,067 185,589 (484,931 ) 9,980,128 1,417,397 11,184,250 318,041 11,502,291
Comprehensive income for the period
Profit for the period 363,069 363,069 19,876 382,945
Other comprehensive income, net of tax 609,468 609,468 14,010 623,478
Total comprehensive income for the period 363,069 609,468 972,537 33,886 1,006,423
Reclassification to retained earnings 416 (416 )
Transactions with owners and other
Dividends paid (99,915 ) (99,915 ) (53,367 ) (153,282 )
Purchases of treasury stock (59,507 ) (59,507 ) (59,507 )
Disposal of treasury stock 394 394 394
Share-based payment transactions (232 ) (232 ) (232 )
Total transactions with owners and other (232 ) (59,113 ) (99,915 ) (159,260 ) (53,367 ) (212,627 )
Balance as of June 30, 2023 86,067 185,357 (544,044 ) 10,243,698 2,026,449 11,997,527 298,560 12,296,087

For the three months ended June 30, 2024

Yen (millions)
Equity attributable to owners of the parent Non-controlling<br>interests Total<br>equity
Common<br>stock Capital<br>surplus Treasury<br>stock Retained<br>earnings Other<br>components<br>of equity Total
Balance as of April 1, 2024 **** 86,067 **** 205,073 **** **** (550,808 ) **** 10,644,213 **** **** 2,312,450 **** 12,696,995 **** **** 308,877 **** **** 13,005,872 ****
Comprehensive income for the period
Profit for the period **** 394,660 **** **** 394,660 **** **** 19,667 **** **** 414,327 ****
Other comprehensive income, net of tax **** 520,243 **** 520,243 **** **** 12,957 **** **** 533,200 ****
Total comprehensive income for the period **** 394,660 **** **** 520,243 **** 914,903 **** **** 32,624 **** **** 947,527 ****
Reclassification to retained earnings **** (38 ) **** 38 **** **** **** ****
Transactions with owners and other
Dividends paid **** (188,418 ) **** (188,418 ) **** (54,998 ) **** (243,416 )
Purchases of treasury stock **** (12,502 ) **** (12,502 ) **** (12,502 )
Disposal of treasury stock **** 319 **** **** 319 **** **** 319 ****
Share-based payment transactions **** (122 ) **** (122 ) **** (122 )
Total transactions with owners and other **** (122 ) **** (12,183 ) **** (188,418 ) **** (200,723 ) **** (54,998 ) **** (255,721 )
Balance as of June 30, 2024 **** 86,067 **** 204,951 **** **** (562,991 ) **** 10,850,417 **** **** 2,832,731 **** 13,411,175 **** **** 286,503 **** **** 13,697,678 ****

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[4] Condensed Consolidated Statements of Cash Flows

For the three months ended June 30, 2023 and 2024

Yen (millions)
Three months<br>ended<br>Jun. 30, 2023 Three monthsendedJun. 30, 2024
Cash flows from operating activities:
Profit before income taxes 514,924 **** 559,474 ****
Depreciation, amortization and impairment losses excluding equipment on operating<br>leases 185,697 **** 187,926 ****
Share of profit of investments accounted for using the equity method (42,853 ) **** (1,434 )
Finance income and finance costs, net (19,992 ) **** (41,502 )
Interest income and interest costs from financial services, net (36,616 ) **** (42,969 )
Changes in assets and liabilities
Trade receivables 134,426 **** 136,517 ****
Inventories 29,146 **** (108,546 )
Trade payables (171,061 ) **** (164,570 )
Accrued expenses (56,526 ) **** (87,424 )
Provisions and retirement benefit liabilities (37,090 ) **** (30,876 )
Receivables from financial services (337,122 ) **** (315,249 )
Equipment on operating leases 45,052 **** (76,747 )
Other assets and liabilities (50,244 ) **** (75,349 )
Other, net (16,099 ) **** 5,589 ****
Dividends received 36,332 **** 51,024 ****
Interest received 115,115 **** 181,054 ****
Interest paid (42,861 ) **** (99,206 )
Income taxes paid, net of refunds (54,106 ) **** (158,975 )
Net cash provided by (used in) operating activities 196,122 **** (81,263 )
Cash flows from investing activities:
Payments for additions to property, plant and equipment (69,208 ) **** (138,790 )
Payments for additions to and internally developed intangible assets (42,127 ) **** (68,623 )
Proceeds from sales of property, plant and equipment and intangible assets 1,332 **** 40 ****
Proceeds from sales of subsidiaries, net of cash and cash equivalents disposed of (2,940 ) **** ****
Payments for acquisitions of investments accounted for using the equity method (36,734 ) **** (831 )
Payments for acquisitions of other financial assets (65,233 ) **** (50,174 )
Proceeds from sales and redemptions of other financial assets 88,327 **** 65,778 ****
Net cash used in investing activities (126,583 ) **** (192,600 )
Cash flows from financing activities:
Proceeds from short-term financing liabilities 3,004,472 **** 2,421,185 ****
Repayments of short-term financing liabilities (2,858,776 ) **** (2,167,488 )
Proceeds from long-term financing liabilities 532,895 **** 477,816 ****
Repayments of long-term financing liabilities (493,899 ) **** (405,841 )
Dividends paid to owners of the parent (99,915 ) **** (188,418 )
Dividends paid to non-controlling interests (20,691 ) **** (23,781 )
Purchases and sales of treasury stock, net (59,113 ) **** (12,183 )
Repayments of lease liabilities (19,738 ) **** (19,342 )
Net cash provided by (used in) financing activities (14,765 ) **** 81,948 ****
Effect of exchange rate changes on cash and cash equivalents 225,606 **** 214,613 ****
Net change in cash and cash equivalents 280,380 **** 22,698 ****
Cash and cash equivalents at beginning of year 3,803,014 **** 4,954,565 ****
Cash and cash equivalents at end of period 4,083,394 **** 4,977,263 ****

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[5] Assumptions for Going Concern

None

[6] Notes to Condensed Consolidated Interim FinancialStatements

[A] Segment Information

Based on Honda’s organizational structure and characteristics of products and services, Honda discloses segment information in four categories: Reportable segments of Motorcycle business, Automobile business and Financial services business, and other segments that are not reportable. The other segments are combined and disclosed in Power products and other businesses. Segment information is based on the components of Honda for 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 segment information are consistent with the accounting policies used in the Company’s condensed consolidated interim 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), side-by-sides (SxS) and relevant parts Research and development<br><br><br>Manufacturing<br> <br>Sales and related services
Automobile Business Automobiles and relevant parts Research and development<br><br><br>Manufacturing<br> <br>Sales and related services
Financial Services Business Financial services Retail loan and lease related to Honda products<br><br><br>Others
Power Products and Other Businesses Power products and relevant parts, and others Research and development<br><br><br>Manufacturing<br> <br>Sales and related services<br><br><br>Others

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Segment information based on products and services

As of and for the three months ended June 30, 2023

Yen (millions)
Motorcycle<br>Business Automobile<br>Business Financial<br>Services<br>Business Power Products<br>and Other<br>Businesses Segment<br>Total Reconciling<br>Items Consolidated
Sales revenue:
External customers 756,955 2,992,339 773,029 102,673 4,624,996 4,624,996
Intersegment 39,009 629 6,522 46,160 (46,160 )
Total 756,955 3,031,348 773,658 109,195 4,671,156 (46,160 ) 4,624,996
Segment profit (loss) 143,520 176,982 69,528 4,417 394,447 394,447
Segment assets 1,793,502 10,669,517 12,374,016 504,694 25,341,729 1,131,628 26,473,357
Depreciation and amortization 17,699 163,159 205,004 3,661 389,523 389,523
Capital expenditures 9,727 119,758 553,141 3,143 685,769 685,769

As of and for the three months ended June 30, 2024

Yen (millions)
Motorcycle<br>Business Automobile<br>Business Financial<br>Services<br>Business Power Products<br>and Other<br>Businesses Segment<br>Total Reconciling<br>Items Consolidated
Sales revenue:
External customers **** 937,687 **** 3,434,612 **** 938,075 **** 94,484 **** **** 5,404,858 **** **** **** 5,404,858
Intersegment **** **** 69,914 **** 1,324 **** 10,402 **** **** 81,640 **** (81,640 ) ****
Total **** 937,687 **** 3,504,526 **** 939,399 **** 104,886 **** **** 5,486,498 **** (81,640 ) **** 5,404,858
Segment profit (loss) **** 177,648 **** 222,840 **** 84,970 **** (753 ) **** 484,705 **** **** **** 484,705
Segment assets **** 2,195,414 **** 12,201,278 **** 15,257,512 **** 607,911 **** **** 30,262,115 **** 1,049,857 **** **** 31,311,972
Depreciation and amortization **** 18,293 **** 164,236 **** 218,208 **** 4,218 **** **** 404,955 **** **** **** 404,955
Capital expenditures **** 12,785 **** 146,761 **** 776,953 **** 2,147 **** **** 938,646 **** **** **** 938,646

Explanatory notes:

1. Intersegment sales revenues are generally made at values that approximate<br>arm’s-length prices.
2. Reconciling items include elimination of intersegment transactions and balances as well as unallocated corporate<br>assets. Unallocated corporate assets, included in reconciling items as of June 30, 2023 and 2024 amounted to JPY 1,276,238 million and JPY 1,330,698 million, respectively, which consist primarily of the Company’s cash and cash<br>equivalents and financial assets measured at fair value through other comprehensive income.
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[B] Other

Loss related to airbag inflators

Honda has been conducting market-based measures in relation to airbag inflators. Honda recognizes a provision for specific warranty costs when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. There is a possibility that Honda will need to recognize additional provisions when new evidence related to the product recalls arise, however, it is not possible for Honda to reasonably estimate the amount and timing of potential future losses as of the date of this report.

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