6-K
Honda Motor Co Ltd (HMC)
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 MAY 2023
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 year ended March 31, 2023.
Exhibit 2:
Notice Concerning Acquisition of the Company’s Own Shares (Acquisition of the Company’s own shares pursuant to the Articles of Incorporation of the Company in accordance with Article 459, Paragraph 1 of the Company Law)
Exhibit 3:
Announcement Regarding the Signing of a Joint Venture Agreement with GS Yuasa for collaboration in Lithium-ion Battery
Table of Contents
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/ Masaharu Hirose |
| Masaharu Hirose |
| General Manager |
| Finance Division |
| Honda Motor Co., Ltd. |
Date: May 11, 2023
Table of Contents
May 11, 2023
HONDA MOTOR CO., LTD. REPORTS
CONSOLIDATED FINANCIALRESULTS
FOR THE FISCAL YEAR ENDED MARCH 31, 2023
Tokyo, May 11, 2023 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal year ended March 31, 2023.
Fiscal Year Results
Honda’s consolidated sales revenue for the fiscal year ended March 31, 2023 increased by 16.2%, to JPY 16,907.7 billion from the fiscal year ended March 31, 2022, due mainly to increased sales revenue in Motorcycle business as well as positive foreign currency translation effects. Operating profit decreased by 3.7%, to JPY 839.3 billion from the previous fiscal year, due mainly to decreased profit attributable to sales impacts and increased expenses including product warranty expenses, which was partially offset by positive foreign currency effects. Profit before income taxes decreased by 12.3%, to JPY 938.1 billion from the previous fiscal year. Profit for the year attributable to owners of the parent decreased by 1.7%, to JPY 695.2 billion from the previous fiscal year.
Earnings per share attributable to owners of the parent for the year amounted to JPY 409.87, a decrease of JPY 1.22 from the previous fiscal year. One Honda American Depository Share represents one common share.
—1—
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Consolidated Statements of Financial Position for the Fiscal Year Ended March 31, 2023
Total assets increased by JPY 696.9 billion, to JPY 24,670.0 billion from March 31, 2022 due mainly to positive foreign currency translation effects, which was partially offset by decreased equipment on operating leases. Total liabilities decreased by JPY 76.6 billion, to JPY 13,123.9 billion from March 31, 2022 due mainly to decreased financing liabilities, which was partially offset by positive foreign currency translation effects. Total equity increased by JPY 773.5 billion, to JPY 11,546.1 billion from March 31, 2022 due mainly to increased retained earnings attributable to profit for the year as well as positive foreign currency translation effects.
Consolidated Statements of Cash Flows for the Fiscal Year Ended March 31,2023
Consolidated cash and cash equivalents on March 31, 2023 increased by JPY 128.0 billion from March 31, 2022, to JPY 3,803.0 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the previous fiscal year, are as follows:
Net cash provided by operating activities amounted to JPY 2,129.0 billion of cash inflows. Cash inflows from operating activities increased by JPY 449.4 billion compared with the previous fiscal 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 678.0 billion of cash outflows. Cash outflows from investing activities increased by JPY 302.0 billion compared with the previous fiscal year, due mainly to increased payments for additions to property, plant and equipment.
Net cash used in financing activities amounted to JPY 1,468.3 billion of cash outflows. Cash outflows from financing activities increased by JPY 852.6 billion compared with the previous fiscal year, due mainly to increased repayments of financing liabilities as well as purchases of treasury stock.
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Forecasts for the Fiscal Year Ending March 31, 2024
In regard to the forecasts of the financial results for the fiscal year ending March 31, 2024, Honda projects consolidated results to be as shown below:
Fiscal year ending March 31, 2024
| Yen (billions) | Changes from FY 2023 | ||||
|---|---|---|---|---|---|
| Sales revenue | 18,200.0 | + 7.6 | % | ||
| Operating profit | 1,000.0 | + 19.1 | % | ||
| Profit before income taxes | 1,185.0 | + 26.3 | % | ||
| Profit for the year | 865.0 | + 13.6 | % | ||
| Profit for the year attributable to owners of the parent | 800.0 | + 15.1 | % | ||
| Yen | |||||
| Earnings per share attributable to owners of the parent | |||||
| Basic and diluted | 489.41 |
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 125 for the full year ending March 31, 2024.
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, 2024 from the previous year are as follows.
| Yen (billions) | ||
|---|---|---|
| Sales impacts | + 440.6 | |
| Price and cost impacts | + 265.0 | |
| Expenses | - 217.0 | |
| R&D expenses | - 60.0 | |
| Currency effect | - 268.0 | |
| Operating profit compared with fiscal year ended March 31, 2023 | + 160.6 | |
| Profit of equity method | + 67.5 | |
| Other | + 18.6 | |
| Profit before income taxes compared with fiscal year ended March 31, 2023 | + 246.8 |
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Dividend per Share of Common Stock
| Yen | ||||||
|---|---|---|---|---|---|---|
| FY 2022 results | FY 2023 results | FY 2024 forecasts | ||||
| Interim dividend | 55.00 | 60.00 | 75.00 | |||
| Year-end dividend | 65.00 | 60.00 | 75.00 | |||
| Total annual dividend | 120.00 | 120.00 | 150.00 |
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.
Basic Rationale for Selection of Accounting Standards
The Company adopted IFRS for the Company’s consolidated financial statements from the year ended March 31, 2015 which have been included in the annual securities report (to be submitted to the Financial Services Agency of Japan) and Form 20-F (to be submitted to the U.S. Securities and Exchange Commission), aiming at improving comparability of financial information across international capital markets as well as standardization of financial information and enhancing efficiency of financial reporting of the Company and its consolidated subsidiaries.
—4—
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[1] Consolidated Statements of Financial Position
March 31, 2022 and 2023
| Yen (millions) | ||||||
|---|---|---|---|---|---|---|
| Mar. 31, 2022 | Mar. 31, 2023 | |||||
| Assets | ||||||
| Current assets: | ||||||
| Cash and cash equivalents | 3,674,931 | **** | 3,803,014 | **** | ||
| Trade receivables | 896,768 | **** | 1,060,271 | **** | ||
| Receivables from financial services | 1,694,113 | **** | 1,899,493 | **** | ||
| Other financial assets | 217,743 | **** | 263,892 | **** | ||
| Inventories | 1,918,548 | **** | 2,167,184 | **** | ||
| Other current assets | 439,322 | **** | 384,494 | **** | ||
| Total current assets | 8,841,425 | **** | 9,578,348 | **** | ||
| Non-current assets: | ||||||
| Investments accounted for using the equity method | 967,404 | **** | 915,946 | **** | ||
| Receivables from financial services | 3,740,383 | **** | 3,995,259 | **** | ||
| Other financial assets | 819,654 | **** | 855,070 | **** | ||
| Equipment on operating leases | 5,159,129 | **** | 4,726,292 | **** | ||
| Property, plant and equipment | 3,079,407 | **** | 3,168,109 | **** | ||
| Intangible assets | 849,507 | **** | 870,900 | **** | ||
| Deferred tax assets | 91,592 | **** | 105,792 | **** | ||
| Other non-current assets | 424,652 | **** | 454,351 | **** | ||
| Total non-current assets | 15,131,728 | **** | 15,091,719 | **** | ||
| Total assets | 23,973,153 | **** | 24,670,067 | **** | ||
| Liabilities and Equity | ||||||
| Current liabilities: | ||||||
| Trade payables | 1,236,233 | **** | 1,426,333 | **** | ||
| Financing liabilities | 3,118,304 | **** | 3,291,195 | **** | ||
| Accrued expenses | 375,601 | **** | 419,570 | **** | ||
| Other financial liabilities | 236,900 | **** | 324,110 | **** | ||
| Income taxes payable | 96,116 | **** | 86,252 | **** | ||
| Provisions | 268,388 | **** | 316,665 | **** | ||
| Other current liabilities | 672,857 | **** | 741,963 | **** | ||
| Total current liabilities | 6,004,399 | **** | 6,606,088 | **** | ||
| Non-current liabilities: | ||||||
| Financing liabilities | 4,984,252 | **** | 4,373,973 | **** | ||
| Other financial liabilities | 282,083 | **** | 288,736 | **** | ||
| Retirement benefit liabilities | 282,054 | **** | 255,852 | **** | ||
| Provisions | 253,625 | **** | 257,576 | **** | ||
| Deferred tax liabilities | 990,754 | **** | 892,078 | **** | ||
| Other non-current liabilities | 403,440 | **** | 449,622 | **** | ||
| Total non-current liabilities | 7,196,208 | **** | 6,517,837 | **** | ||
| Total liabilities | 13,200,607 | **** | 13,123,925 | **** | ||
| Equity: | ||||||
| Common stock | 86,067 | **** | 86,067 | **** | ||
| Capital surplus | 185,495 | **** | 185,589 | **** | ||
| Treasury stock | (328,309 | ) | **** | (484,931 | ) | |
| Retained earnings | 9,539,133 | **** | 10,023,979 | **** | ||
| Other components of equity | 990,438 | **** | 1,417,397 | **** | ||
| Equity attributable to owners of the parent | 10,472,824 | **** | 11,228,101 | **** | ||
| Non-controlling interests | 299,722 | **** | 318,041 | **** | ||
| Total equity | 10,772,546 | **** | 11,546,142 | **** | ||
| Total liabilities and equity | 23,973,153 | **** | 24,670,067 | **** |
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[2] Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the years ended March 31, 2022 and 2023
| Yen (millions) | ||||||
|---|---|---|---|---|---|---|
| Year endedMar. 31, 2022 | Year endedMar. 31, 2023 | |||||
| Sales revenue | 14,552,696 | **** | 16,907,725 | **** | ||
| Operating costs and expenses: | ||||||
| Cost of sales | (11,567,923 | ) | **** | (13,576,133 | ) | |
| Selling, general and administrative | (1,326,485 | ) | **** | (1,611,279 | ) | |
| Research and development | (787,056 | ) | **** | (880,915 | ) | |
| Total operating costs and expenses | (13,681,464 | ) | **** | (16,068,327 | ) | |
| Operating profit | 871,232 | **** | 839,398 | **** | ||
| Share of profit of investments accounted for using the equity method | 202,512 | **** | 117,445 | **** | ||
| Finance income and finance costs: | ||||||
| Interest income | 25,627 | **** | 73,071 | **** | ||
| Interest expense | (16,867 | ) | **** | (36,112 | ) | |
| Other, net | (12,314 | ) | **** | (55,608 | ) | |
| Total finance income and finance costs | (3,554 | ) | **** | (18,649 | ) | |
| Profit before income taxes | 1,070,190 | **** | 938,194 | **** | ||
| Income tax expense | (309,489 | ) | **** | (177,034 | ) | |
| Profit for the year | 760,701 | **** | 761,160 | **** | ||
| Profit for the year attributable to: | ||||||
| Owners of the parent | 707,067 | **** | 695,267 | **** | ||
| Non-controlling interests | 53,634 | **** | 65,893 | **** | ||
| Yen | ||||||
| Earnings per share attributable to owners of the parent | ||||||
| Basic and diluted | 411.09 | **** | 409.87 | **** |
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Consolidated Statements of Comprehensive Income
For the years ended March 31, 2022 and 2023
| Yen (millions) | ||||||
|---|---|---|---|---|---|---|
| Year endedMar. 31, 2022 | Year endedMar. 31, 2023 | |||||
| Profit for the year | 760,701 | **** | 761,160 | **** | ||
| Other comprehensive income, net of tax: | ||||||
| Items that will not be reclassified to profit or loss | ||||||
| Remeasurements of defined benefit plans | 117,042 | **** | 3,350 | **** | ||
| Net changes in revaluation of financial assets measured at fair value through other comprehensive<br>income | 58,635 | **** | (18,465 | ) | ||
| Share of other comprehensive income of investments accounted for using the equity method | 1,786 | **** | 292 | **** | ||
| 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 | (682 | ) | **** | (474 | ) | |
| Exchange differences on translating foreign operations | 680,724 | **** | 422,960 | **** | ||
| Share of other comprehensive income of investments accounted for using the equity method | 77,447 | **** | 30,429 | **** | ||
| Total other comprehensive income, net of tax | 934,952 | **** | 438,092 | **** | ||
| Comprehensive income for the year | 1,695,653 | **** | 1,199,252 | **** | ||
| Comprehensive income for the year attributable to: | ||||||
| Owners of the parent | 1,619,997 | **** | 1,125,280 | **** | ||
| Non-controlling interests | 75,656 | **** | 73,972 | **** |
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[3] Consolidated Statements of Changes in Equity
For the years ended March 31, 2022 and 2023
| Yen (millions) | |||||||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity attributable to owners of the parent | Non-controllinginterests | Totalequity | |||||||||||||||||||||
| Commonstock | Capitalsurplus | Treasurystock | Retainedearnings | Othercomponentsof equity | Total | ||||||||||||||||||
| Balance as of April 1, 2021 | 86,067 | 172,049 | (273,786 | ) | 8,901,266 | 196,710 | 9,082,306 | 290,533 | 9,372,839 | ||||||||||||||
| Comprehensive income for the year | |||||||||||||||||||||||
| Profit for the year | 707,067 | 707,067 | 53,634 | 760,701 | |||||||||||||||||||
| Other comprehensive income, net of tax | 912,930 | 912,930 | 22,022 | 934,952 | |||||||||||||||||||
| Total comprehensive income for the year | 707,067 | 912,930 | 1,619,997 | 75,656 | 1,695,653 | ||||||||||||||||||
| Reclassification to retained earnings | 119,202 | (119,202 | ) | — | — | ||||||||||||||||||
| Transactions with owners and other | |||||||||||||||||||||||
| Dividends paid | (188,402 | ) | (188,402 | ) | (45,131 | ) | (233,533 | ) | |||||||||||||||
| Purchases of treasury stock | (62,758 | ) | (62,758 | ) | (62,758 | ) | |||||||||||||||||
| Disposal of treasury stock | 578 | 578 | 578 | ||||||||||||||||||||
| Share-based payment transactions | (233 | ) | (233 | ) | (233 | ) | |||||||||||||||||
| Equity transactions and others | 13,679 | 7,657 | 21,336 | (21,336 | ) | — | |||||||||||||||||
| Total transactions with owners and other | 13,446 | (54,523 | ) | (188,402 | ) | (229,479 | ) | (66,467 | ) | (295,946 | ) | ||||||||||||
| Balance as of March 31, 2022 | 86,067 | 185,495 | (328,309 | ) | 9,539,133 | 990,438 | 10,472,824 | 299,722 | 10,772,546 | ||||||||||||||
| Comprehensive income for the year | |||||||||||||||||||||||
| Profit for the year | 695,267 | 695,267 | 65,893 | 761,160 | |||||||||||||||||||
| Other comprehensive income, net of tax | 430,013 | 430,013 | 8,079 | 438,092 | |||||||||||||||||||
| Total comprehensive income for the year | 695,267 | 430,013 | 1,125,280 | 73,972 | 1,199,252 | ||||||||||||||||||
| Reclassification to retained earnings | 3,054 | (3,054 | ) | — | — | ||||||||||||||||||
| Transactions with owners and other | |||||||||||||||||||||||
| Dividends paid | (213,475 | ) | (213,475 | ) | (51,601 | ) | (265,076 | ) | |||||||||||||||
| Purchases of treasury stock | (157,001 | ) | (157,001 | ) | (157,001 | ) | |||||||||||||||||
| Disposal of treasury stock | 379 | 379 | 379 | ||||||||||||||||||||
| Share-based payment transactions | 94 | 94 | 94 | ||||||||||||||||||||
| Equity transactions and others | (4,052 | ) | (4,052 | ) | |||||||||||||||||||
| Total transactions with owners and other | 94 | (156,622 | ) | (213,475 | ) | (370,003 | ) | (55,653 | ) | (425,656 | ) | ||||||||||||
| Balance as of March 31, 2023 | 86,067 | 185,589 | (484,931 | ) | 10,023,979 | 1,417,397 | 11,228,101 | 318,041 | 11,546,142 |
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[4] Consolidated Statements of Cash Flows
For the years ended March 31, 2022 and 2023
| Yen (millions) | ||||||
|---|---|---|---|---|---|---|
| Year endedMar. 31, 2022 | Year endedMar. 31, 2023 | |||||
| Cash flows from operating activities: | ||||||
| Profit before income taxes | 1,070,190 | **** | 938,194 | **** | ||
| Depreciation, amortization and impairment losses excluding equipment on operating<br>leases | 611,063 | **** | 721,630 | **** | ||
| Share of profit of investments accounted for using the equity method | (202,512 | ) | **** | (117,445 | ) | |
| Finance income and finance costs, net | (56,352 | ) | **** | (71,661 | ) | |
| Interest income and interest costs from financial services, net | (155,872 | ) | **** | (146,461 | ) | |
| Changes in assets and liabilities | ||||||
| Trade receivables | (24,037 | ) | **** | (155,924 | ) | |
| Inventories | (208,895 | ) | **** | (171,467 | ) | |
| Trade payables | 50,122 | **** | 105,272 | **** | ||
| Accrued expenses | (68,811 | ) | **** | 42,122 | **** | |
| Provisions and retirement benefit liabilities | (156,079 | ) | **** | 32,251 | **** | |
| Receivables from financial services | 509,741 | **** | (41,480 | ) | ||
| Equipment on operating leases | 171,600 | **** | 768,070 | **** | ||
| Other assets and liabilities | 28,981 | **** | 218,369 | **** | ||
| Other, net | (19,782 | ) | **** | (1,222 | ) | |
| Dividends received | 193,555 | **** | 244,902 | **** | ||
| Interest received | 237,724 | **** | 324,234 | **** | ||
| Interest paid | (97,884 | ) | **** | (159,020 | ) | |
| Income taxes paid, net of refunds | (203,130 | ) | **** | (401,342 | ) | |
| Net cash provided by operating activities | 1,679,622 | **** | 2,129,022 | **** | ||
| Cash flows from investing activities: | ||||||
| Payments for additions to property, plant and equipment | (268,143 | ) | **** | (475,048 | ) | |
| Payments for additions to and internally developed intangible assets | (181,083 | ) | **** | (157,440 | ) | |
| Proceeds from sales of property, plant and equipment and intangible assets | 27,108 | **** | 16,206 | **** | ||
| Proceeds from sales of subsidiaries, net of cash and cash equivalents disposed | — | **** | 740 | **** | ||
| Payments for acquisitions of investments accounted for using the equity method | — | (23,826 | ) | |||
| Payments for acquisitions of other financial assets | (488,631 | ) | **** | (527,334 | ) | |
| Proceeds from sales and redemptions of other financial assets | 534,693 | **** | 488,642 | **** | ||
| Net cash used in investing activities | (376,056 | ) | **** | (678,060 | ) | |
| Cash flows from financing activities: | ||||||
| Proceeds from short-term financing liabilities | 7,487,724 | **** | 9,127,333 | **** | ||
| Repayments of short-term financing liabilities | (7,960,144 | ) | **** | (8,684,799 | ) | |
| Proceeds from long-term financing liabilities | 2,002,823 | **** | 971,067 | **** | ||
| Repayments of long-term financing liabilities | (1,761,561 | ) | **** | (2,382,190 | ) | |
| Dividends paid to owners of the parent | (188,402 | ) | **** | (213,475 | ) | |
| Dividends paid to non-controlling interests | (53,813 | ) | **** | (51,376 | ) | |
| Purchases and sales of treasury stock, net | (62,180 | ) | **** | (156,622 | ) | |
| Repayments of lease liabilities | (80,165 | ) | **** | (78,297 | ) | |
| Net cash used in financing activities | (615,718 | ) | **** | (1,468,359 | ) | |
| Effect of exchange rate changes on cash and cash equivalents | 229,063 | **** | 145,480 | **** | ||
| Net change in cash and cash equivalents | 916,911 | **** | 128,083 | **** | ||
| Cash and cash equivalents at beginning of year | 2,758,020 | **** | 3,674,931 | **** | ||
| Cash and cash equivalents at end of year | 3,674,931 | **** | 3,803,014 | **** |
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[5] Assumptions for Going Concern
None
—10—
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[6] Notes to Consolidated Financial Statements
[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 product 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 consolidated 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),<br>side-by-sides (SxS) and relevant parts | Research and development<br> <br>Manufacturing<br><br><br>Sales and related services |
| Automobile Business | Automobiles and relevant parts | Research and development<br> <br>Manufacturing<br><br><br>Sales and related services |
| Financial Services Business | Financial services | Retail loan and lease related to Honda products<br><br><br>Others |
| Power Product and Other Businesses* | Power products and relevant parts, and others | Research and development<br> <br>Manufacturing<br><br>Sales and related services<br> <br>Others |
Explanatory note:
| * | Life creation business has been renamed Power product business as a result of organizational changes effective<br>April 1, 2022. |
|---|
Segment information based on products and services
As of and for the year ended March 31, 2022
| Yen (millions) | ||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MotorcycleBusiness | AutomobileBusiness | FinancialServicesBusiness | Power Product<br>and OtherBusinesses | SegmentTotal | ReconcilingItems | Consolidated | ||||||||||
| Sales revenue: | ||||||||||||||||
| External customers | 2,185,253 | 9,147,498 | 2,820,667 | 399,278 | 14,552,696 | — | 14,552,696 | |||||||||
| Intersegment | — | 213,095 | 2,656 | 22,480 | 238,231 | (238,231 | ) | — | ||||||||
| Total | 2,185,253 | 9,360,593 | 2,823,323 | 421,758 | 14,790,927 | (238,231 | ) | 14,552,696 | ||||||||
| Segment profit (loss) | 311,492 | 236,207 | 333,032 | (9,499 | ) | 871,232 | — | 871,232 | ||||||||
| Segment assets | 1,448,926 | 9,563,553 | 11,318,756 | 475,124 | 22,806,359 | 1,166,794 | 23,973,153 | |||||||||
| Depreciation and amortization | 65,423 | 510,755 | 883,712 | 17,018 | 1,476,908 | — | 1,476,908 | |||||||||
| Capital expenditures | 49,203 | 410,169 | 2,028,700 | 15,748 | 2,503,820 | — | 2,503,820 |
As of and for the year ended March 31, 2023
| Yen (millions) | |||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| MotorcycleBusiness | AutomobileBusiness | FinancialServicesBusiness | Power Productand OtherBusinesses | SegmentTotal | ReconcilingItems | Consolidated | |||||||||
| Sales revenue: | |||||||||||||||
| External customers | **** | 2,908,983 | **** | 10,593,519 | **** | 2,954,098 | **** | 451,125 | **** | 16,907,725 | **** | — | **** | **** | 16,907,725 |
| Intersegment | **** | — | **** | 188,198 | **** | 2,046 | **** | 25,307 | **** | 215,551 | **** | (215,551 | ) | **** | — |
| Total | **** | 2,908,983 | **** | 10,781,717 | **** | 2,956,144 | **** | 476,432 | **** | 17,123,276 | **** | (215,551 | ) | **** | 16,907,725 |
| Segment profit (loss) | **** | 488,709 | **** | 42,000 | **** | 285,857 | **** | 22,832 | **** | 839,398 | **** | — | **** | **** | 839,398 |
| Segment assets | **** | 1,580,521 | **** | 10,069,036 | **** | 11,197,017 | **** | 480,166 | **** | 23,326,740 | **** | 1,343,327 | **** | **** | 24,670,067 |
| Depreciation and amortization | **** | 65,746 | **** | 600,617 | **** | 908,942 | **** | 21,571 | **** | 1,596,876 | **** | — | **** | **** | 1,596,876 |
| Capital expenditures | **** | 59,101 | **** | 613,351 | **** | 1,546,683 | **** | 14,386 | **** | 2,233,521 | **** | — | **** | **** | 2,233,521 |
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 March 31, 2022 and 2023 amounted to JPY 1,319,995 million and JPY 1,462,656 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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Table of Contents
In addition to the disclosure required by IFRS, Honda provides the following supplemental information for the financial statements users:
Supplemental geographical information based on the location of the Company and its subsidiaries
As of and for the year ended March 31, 2022
| Yen (millions) | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Japan | NorthAmerica | Europe | Asia | OtherRegions | Total | ReconcilingItems | Consolidated | ||||||||||
| Sales revenue: | |||||||||||||||||
| External customers | 2,354,532 | 7,618,932 | 602,695 | 3,393,323 | 583,214 | 14,552,696 | — | 14,552,696 | |||||||||
| Inter-geographic areas | 2,004,754 | 471,255 | 98,516 | 662,124 | 9,925 | 3,246,574 | (3,246,574 | ) | — | ||||||||
| Total | 4,359,286 | 8,090,187 | 701,211 | 4,055,447 | 593,139 | 17,799,270 | (3,246,574 | ) | 14,552,696 | ||||||||
| Operating profit (loss) | 6,411 | 501,073 | 26,681 | 339,129 | 22,899 | 896,193 | (24,961 | ) | 871,232 | ||||||||
| Assets | 5,318,033 | 12,983,779 | 597,473 | 3,803,877 | 619,998 | 23,323,160 | 649,993 | 23,973,153 | |||||||||
| Non-current assets other than financial instruments,<br>deferred tax assets and net defined benefit assets | 3,036,832 | 5,334,121 | 49,129 | 706,562 | 169,447 | 9,296,091 | — | 9,296,091 |
As of and for the year ended March 31, 2023
| Yen (millions) | ||||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Japan | NorthAmerica | Europe | Asia | OtherRegions | Total | ReconcilingItems | Consolidated | |||||||||||
| Sales revenue: | ||||||||||||||||||
| External customers | **** | 2,409,584 | **** | 8,939,259 | **** | 675,728 | **** | **** | 4,068,234 | **** | 814,920 | **** | 16,907,725 | **** | — | **** | **** | 16,907,725 |
| Inter-geographic areas | **** | 2,138,418 | **** | 476,993 | **** | 27,990 | **** | **** | 789,603 | **** | 4,695 | **** | 3,437,699 | **** | (3,437,699 | ) | **** | — |
| Total | **** | 4,548,002 | **** | 9,416,252 | **** | 703,718 | **** | **** | 4,857,837 | **** | 819,615 | **** | 20,345,424 | **** | (3,437,699 | ) | **** | 16,907,725 |
| Operating profit (loss) | **** | 30,671 | **** | 312,584 | **** | (2,556 | ) | **** | 408,728 | **** | 58,935 | **** | 808,362 | **** | 31,036 | **** | **** | 839,398 |
| Assets | **** | 5,306,084 | **** | 13,467,383 | **** | 648,614 | **** | **** | 3,771,171 | **** | 690,904 | **** | 23,884,156 | **** | 785,911 | **** | **** | 24,670,067 |
| Non-current assets other than financial instruments,<br>deferred tax assets and net defined benefit assets | **** | 2,937,148 | **** | 5,192,731 | **** | 47,869 | **** | **** | 685,311 | **** | 175,893 | **** | 9,038,952 | **** | — | **** | **** | 9,038,952 |
Explanatory notes:
| 1. | Major countries in each geographic area: |
|---|---|
| North America | United States, Canada, Mexico |
| --- | --- |
| Europe | United Kingdom, Germany, Belgium, Italy, France |
| Asia | Thailand, China, India, Vietnam, Malaysia |
| Other Regions | Brazil, Australia |
| 2. | Sales revenues between geographic areas are generally made at values that approximate arm’s-length prices. |
| --- | --- |
| 3. | Reconciling items include elimination of inter-geographic transactions and balances as well as unallocated<br>corporate assets. Unallocated corporate assets, included in reconciling items as of March 31, 2022 and 2023 amounted to JPY 1,319,995 million and JPY 1,462,656 million, respectively, which consist primarily of the Company’s cash<br>and cash equivalents and financial assets measured at fair value through other comprehensive income. |
| --- | --- |
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Table of Contents
[B] Information about per common share
Equity per share attributable to owners of the parent as of March 31, 2022 and 2023 are calculated based on the following information.
| 2022 | 2023 | |||
|---|---|---|---|---|
| Equity attributable to owners of the parent (millions of yen) | 10,472,824 | **** | 11,228,101 | |
| The number of shares outstanding at the end of the year (excluding treasury stock)<br>(shares) | 1,710,600,356 | **** | 1,664,340,589 | |
| Equity per share attributable to owners of the parent (yen) | 6,122.31 | **** | 6,746.28 |
Earnings per share attributable to owners of the parent for the years ended March 31, 2022 and 2023 are calculated based on the following information. There were no significant potentially dilutive common shares outstanding for the years ended March 31, 2022 and 2023.
| 2022 | 2023 | |||
|---|---|---|---|---|
| Profit for the year attributable to owners of the parent (millions of yen) | 707,067 | **** | 695,267 | |
| Weighted average number of common shares outstanding, basic (shares) | 1,719,961,835 | **** | 1,696,307,115 | |
| Basic earnings per share attributable to owners of the parent (yen) | 411.09 | **** | 409.87 |
[C] Significant Subsequent Event
Acquisition of the Company’s Own Shares
The Board of Directors of the Company, at its meeting held on May 11, 2023, resolved that the Company will acquire its own shares pursuant to Article 459, Paragraph 1 of the Company Law and Article 36 of the Company’s Articles of Incorporation.
| 1. | Reason for acquisition of own shares |
|---|
The Company will acquire its own shares for the purpose, among others, of improving efficiency of its capital structure and implementing a flexible capital strategy.
| 2. | Details of the acquisition |
|---|---|
| (1) | Class of shares to be acquired: |
| --- | --- |
Shares of common stock
| (2) | Total number of shares to be acquired: |
|---|
Up to 64,000,000 shares (3.8 % of total number of issued shares (excluding treasury stock))
| (3) | Total amount of shares to be acquired: |
|---|
Up to 200,000 million yen
| (4) | Period of acquisition: |
|---|
Starting on May 12, 2023 and ending on March 31, 2024
| (5) | Method of acquisition: |
|---|
Market purchases on the Tokyo Stock Exchange
| 1. | Purchases through the Tokyo Stock Exchange Trading Network Off-Auction<br>Own Share Repurchase Trading System (ToSTNeT-3) |
|---|---|
| 2. | Market purchases based on a discretionary trading contract regarding acquisition of own shares<br> |
| --- | --- |
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[D] 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.
—14—
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[Translation]
May 11, 2023
| To: | Shareholders of Honda Motor Co., Ltd. |
|---|---|
| From: | Honda Motor Co., Ltd. |
| --- | --- |
1-1, Minami-Aoyama 2-chome,
Minato-ku, Tokyo, 107-8556
Toshihiro Mibe
Director, President and Representative Executive Officer
Notice Concerning Acquisition of the Company’s Own Shares
(Acquisition of the Company’s own shares pursuant to the Articles of Incorporation of the Company
in accordance with Article 459, Paragraph 1 of the Company Law)
The Board of Directors of Honda Motor Co., Ltd. (the “Company”), at its meeting held on May 11, 2023, resolved that the Company will acquire its own shares pursuant to Article 459, Paragraph 1 of the Company Law and Article 36 of the Company’s Articles of Incorporation.
Particulars
| 1. | Reason for acquisition of own shares |
|---|
The Company will acquire its own shares for the purpose, among others, of improving efficiency of its capital structure and implementing a flexible capital strategy.
| 2. | Details of the acquisition |
|---|---|
| (1) | Class of shares to be acquired: |
| --- | --- |
Shares of common stock
| (2) | Total number of shares to be acquired: |
|---|
Up to 64,000,000 shares (3.8 % of total number of issued shares (excluding treasury stock))
| (3) | Total amount of shares to be acquired: |
|---|
Up to 200 billion yen
| (4) | Period of acquisition: |
|---|
Starting on May 12, 2023 and ending on March 31, 2024
| (5) | Method of acquisition: |
|---|
Market purchases on the Tokyo Stock Exchange
| 1. | Purchases through the Tokyo Stock Exchange Trading Network Off-Auction<br>Own Share Repurchase Trading System (ToSTNeT-3) |
|---|---|
| 2. | Market purchases based on a discretionary trading contract regarding acquisition of own shares<br> |
| --- | --- |
| Reference: | The Company’s treasury stock held as of March 31, 2023 |
| --- | --- |
| Total number of issued shares (excluding treasury stock): | 1,664,340,589 shares |
| --- | --- |
| Total number of treasury stock: | 147,087,841 shares |
Table of Contents
[Translation]
May 11, 2023
| To: | Shareholders of Honda Motor Co., Ltd. |
|---|---|
| From: | Honda Motor Co., Ltd. |
| --- | --- |
1-1, Minami-Aoyama 2-chome,
Minato-ku, Tokyo, 107-8556
Toshihiro Mibe
Director, President and Representative Executive Officer
Announcement Regarding the Signing of a Joint Venture Agreement with
GS Yuasa for collaboration in Lithium-ion Battery
Honda Motor Co., Ltd. (“Honda”) today announced that it has signed a joint venture agreement with GS Yuasa International Ltd. (“GS Yuasa”) to establish a new company that will research and develop lithium-ion batteries and strive to establish a highly-efficient production system for its batteries. For details, please see the attached press release.
This transaction is not anticipated to have a material impact on Honda’s consolidated financial results for the fiscal year ending March 31, 2024.
- End -
Table of Contents
News Release
May 11, 2023
Honda Motor Co., Ltd.
GS Yuasa International Ltd.
Honda and GS Yuasa Sign Joint Venture Agreement To Establish New Company,
Honda • GS Yuasa EV Battery R&D Co., Ltd.
TOKYO, Japan, May 11, 2023 – Honda Motor Co., Ltd. (Honda) and GS Yuasa International Ltd. (GS Yuasa) today announced that they have signed a joint venture agreement toward the establishment of a new company. As announced on January 23, 2023 with a joint press release titled, “Honda and GS Yuasa Reach Basic Agreement Toward Collaboration for a High-capacity, High-output Lithium-ion Battery,” the two companies have been discussing specifics for collaboration on high-capacity, high-output lithium-ion batteries, mainly for EVs.
To address the rapidly growing demand for batteries, the new joint venture company, which will be named Honda • GS Yuasa EV Battery R&D Co., Ltd., will research and develop lithium-ion batteries and battery production methods that will be highly competitive at a global level. Moreover, the new company will strive to establish a supply chain for key raw materials and a highly-efficient production system for its batteries.
The new company is scheduled to be established and begin operation before the end of 2023. The establishment of the new company and the start of its operation are subject to the approvals of the relevant authorities.
| ∎ | Comments by Koichi Yamamoto, Representative Director and President (to be) ofHonda • GS Yuasa EV Battery R&D Co., Ltd. |
|---|
“We are very pleased that Honda and GS Yuasa have reached a joint venture agreement, which will become a new milestone in our pursuit of the realization of carbon neutrality, which is a goal shared by the two companies. The new company will fully leverage the strengths of the two companies and establish a strong presence in the rapidly expanding battery market.”
| ∎ | About the new company (plan) | |
|---|---|---|
| Company name: | Honda • GS Yuasa EV Battery R&D Co., Ltd. | |
| --- | --- | --- |
| Head office location: | 1, Inobanba-cho, Nishinosho, Kisshoin, Minami-ku, Kyoto, Japan | |
| Capital: | Amount of capital at establishment: | 2 billion yen |
| Amount of capital reserve at establishment: | 2 billion yen | |
| Capital contribution ratio: | 50% Honda Motor Co., Ltd. | |
| 50% GS Yuasa International Ltd. | ||
| Directors: | Koichi Yamamoto, Representative Director and President (from Honda) | |
| Masaaki Hosokawa, Representative Director and Vice President (from GS Yuasa) |