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 JANUARY 2014
COMMISSION FILE NUMBER: 1-07628
HONDA GIKEN KOGYO KABUSHIKI KAISHA
(Name of registrant)
HONDA MOTOR 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 x 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): ¨
Exhibit 1:
Exhibit 2:
Exhibit 3:
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/ Kohei Takeuchi |
| Kohei Takeuchi |
| Operating Officer and Director |
| Chief Financial Officer |
| Honda Motor Co., Ltd. |
Date: February 10, 2014
Honda Prospect Motor Opens Second Factory in Indonesia
KARAWANG, Indonesia, January 15, 2014 — Honda Prospect Motor officially opens its new second factory located in Karawang, West Java, Indonesia, with a grand opening ceremony on January 15, 2014.
For details, please refer to the website of Honda Motor Co., Ltd
http://world.honda.com/news/2014/c140115Second-Factory-Indonesia/index.html
Honda Expands Factory in Malaysia with Opening of No.2 Line in Malacca
Malacca, Malaysia, January 16, 2014 — Honda Malaysia Sdn Bhd reinforced its strong commitment towards its business in Malaysia with the opening of the No.2 Line at its Pegoh Plant in Alor Gajah, Malacca, 11 years after the No.1 Line was opened in January 2003.
For details, please refer to the website of Honda Motor Co., Ltd
http://world.honda.com/news/2014/c140116Expands-Factory-Malaysia/index.html
HONDA MOTOR CO., LTD. REPORTS
CONSOLIDATED FINANCIAL RESULTS
FOR THE FISCAL THIRD QUARTER AND
THE FISCAL NINE-MONTH PERIOD ENDED DECEMBER 31, 2013
Tokyo, January 31, 2014 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal third quarter and the fiscal nine-month period ended December 31, 2013.
Third Quarter Results
Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal third quarter ended December 31, 2013 totaled JPY 160.7 billion (USD 1,525 million), an increase of 107.6% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the quarter amounted to JPY 89.18 (USD 0.85), an increase of JPY 46.21 (USD 0.44) from JPY 42.97 for the corresponding period last year. One Honda American Depository Share represents one common share.
Consolidated net sales and other operating revenue (herein referred to as “revenue”) for the quarter amounted to JPY 3,020.8 billion (USD 28,664 million), an increase of 24.5% from the same period last year, due primarily to increased revenue in automobile and motorcycle business operations, as well as favorable foreign currency translation effects.
Consolidated operating income for the quarter amounted to JPY 228.5 billion (USD 2,169 million), an increase of 73.2% from the same period last year, due primarily to an increase in sales volume and model mix, continuing cost reduction efforts and favorable foreign currency effects, despite increased SG&A expenses.
Consolidated income before income taxes and equity in income of affiliates for the quarter totaled JPY 216.6 billion (USD 2,055 million), an increase of 141.3% from the same period last year.
Equity in income of affiliates amounted to JPY 31.6 billion (USD 300 million) for the quarter, an increase of 47.7% from the corresponding period last year.
- 1 -
Business Segment
Motorcycle Business
For the three months ended December 31, 2012 and 2013
| Unit (Thousands) | ||||||||||||||||||||||||||||||||
| Honda Group Unit Sales | Consolidated Unit Sales | |||||||||||||||||||||||||||||||
| Three months ended Dec. 31, 2012 |
Three months ended Dec. 31, 2013 |
Change | % | Three months ended Dec. 31, 2012 |
Three months ended Dec. 31, 2013 |
Change | % | |||||||||||||||||||||||||
| Motorcycle business |
3,815 | 4,251 | 436 | 11.4 | 2,350 | 2,657 | 307 | 13.1 | ||||||||||||||||||||||||
| Japan |
51 | 52 | 1 | 2.0 | 51 | 52 | 1 | 2.0 | ||||||||||||||||||||||||
| North America |
62 | 63 | 1 | 1.6 | 62 | 63 | 1 | 1.6 | ||||||||||||||||||||||||
| Europe |
29 | 27 | - 2 | - 6.9 | 29 | 27 | - 2 | - 6.9 | ||||||||||||||||||||||||
| Asia |
3,225 | 3,678 | 453 | 14.0 | 1,760 | 2,084 | 324 | 18.4 | ||||||||||||||||||||||||
| Other Regions |
448 | 431 | - 17 | - 3.8 | 448 | 431 | - 17 | - 3.8 | ||||||||||||||||||||||||
Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.
With respect to Honda’s sales for the fiscal third quarter by business segment, in motorcycle business operations, revenue from sales to external customers increased 30.0%, to JPY 400.1 billion (USD 3,797 million) from the same period last year, due mainly to increased consolidated unit sales and favorable foreign currency translation effects. Operating income totaled JPY 34.5 billion (USD 328 million), an increase of 51.4% from the same period last year, due primarily to an increase in sales volume and model mix and favorable foreign currency effects, despite increased SG&A expenses.
Automobile Business
For the three months ended December 31, 2012 and 2013
| Unit (Thousands) | ||||||||||||||||||||||||||||||||
| Honda Group Unit Sales | Consolidated Unit Sales | |||||||||||||||||||||||||||||||
| Three months ended Dec. 31, 2012 |
Three months ended Dec. 31, 2013 |
Change | % | Three months ended Dec. 31, 2012 |
Three months ended Dec. 31, 2013 |
Change | % | |||||||||||||||||||||||||
| Automobile business |
986 | 1,082 | 96 | 9.7 | 841 | 900 | 59 | 7.0 | ||||||||||||||||||||||||
| Japan |
138 | 216 | 78 | 56.5 | 135 | 215 | 80 | 59.3 | ||||||||||||||||||||||||
| North America |
454 | 465 | 11 | 2.4 | 454 | 465 | 11 | 2.4 | ||||||||||||||||||||||||
| Europe |
38 | 38 | 0 | 0.0 | 38 | 38 | 0 | 0.0 | ||||||||||||||||||||||||
| Asia |
279 | 287 | 8 | 2.9 | 137 | 106 | - 31 | - 22.6 | ||||||||||||||||||||||||
| Other Regions |
77 | 76 | - 1 | - 1.3 | 77 | 76 | - 1 | - 1.3 | ||||||||||||||||||||||||
Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales 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 by our Japanese finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles and are not included in consolidated net sales to the external customers in our automobile business. As a result, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile business.
In automobile business operations, revenue from sales to external customers increased 23.9%, to JPY 2,372.4 billion (USD 22,512 million) from the same period last year due mainly to increased consolidated unit sales and favorable foreign currency translation effects. Operating income totaled JPY 154.2 billion (USD 1,464 million), an increase of 117.5% from the same period last year, due primarily to an increase in sales volume and model mix, continuing cost reduction efforts and favorable foreign currency effects, despite increased SG&A expenses.
- 2 -
Financial Services Business
Revenue from customers in the financial services business operations increased 29.3%, to JPY 175.0 billion (USD 1,661 million) from the same period last year due mainly to an increase in revenue from operating leases and favorable foreign currency translation effects. Operating income increased 12.0% to JPY 42.7 billion (USD 405 million) from the same period last year due mainly to favorable foreign currency effects.
Power Product and Other Businesses
For the three months ended December 31, 2012 and 2013
| Unit (Thousands) | ||||||||||||||||
| Honda Group Unit Sales/ Consolidated Unit Sales | ||||||||||||||||
| Three months ended Dec. 31, 2012 |
Three months ended Dec. 31, 2013 |
Change | % | |||||||||||||
| Power product business |
1,195 | 1,162 | - 33 | - 2.8 | ||||||||||||
| Japan |
63 | 63 | 0 | 0.0 | ||||||||||||
| North America |
426 | 427 | 1 | 0.2 | ||||||||||||
| Europe |
206 | 198 | - 8 | - 3.9 | ||||||||||||
| Asia |
341 | 338 | - 3 | - 0.9 | ||||||||||||
| Other Regions |
159 | 136 | - 23 | - 14.5 | ||||||||||||
Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. In power product business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales for the three months ended December 31, 2012 and for the three months ended December 31, 2013, since no affiliate accounted for under the equity method was involved in the sale of Honda power products.
Revenue from sales to external customers in power product and other businesses increased 9.1%, to JPY 73.2 billion (USD 695 million) from the same period last year, due mainly to favorable foreign currency translation effects. Honda reported an operating loss of JPY 2.8 billion (USD 27 million), a decrease of JPY 2.9 billion (USD 28 million) from the same period last year due mainly to increased SG&A expenses and a decrease in sales volume and model mix in power product business operations.
- 3 -
Geographical Information
With respect to Honda’s sales for the fiscal third quarter by geographic segment, in Japan, revenue from domestic and export sales amounted to JPY 1,092.8 billion (USD 10,369 million), an increase of 21.1% from the same period last year due mainly to increased revenue in automobile and motorcycle business operations. Operating income totaled JPY 59.3 billion (USD 563 million), an increase of 45.7% from the same period last year, due mainly to an increase in sales volume and model mix and favorable foreign currency effects, despite increased SG&A and R&D expenses.
In North America, revenue increased by 27.7%, to JPY 1,591.4 billion (USD 15,100 million) from the same period last year due mainly to increased revenue in automobile business operations as well as favorable foreign currency translation effects. Operating income totaled JPY 131.1 billion (USD 1,244 million), an increase of 85.0% from the same period last year due mainly to continuing cost reduction efforts and favorable foreign currency effects, despite increased SG&A expenses.
In Europe, revenue increased by 26.6%, to JPY 180.7 billion (USD 1,715 million) from the same period last year due mainly to favorable foreign currency translation effects, despite decreased revenue in automobile business operations. Honda reported an operating loss of JPY 8.7 billion (USD 83 million), a decline of JPY 5.1 billion (USD 49 million) from the same period last year due mainly to a decrease in sales volume and model mix, despite decreased SG&A expenses and favorable foreign currency effects.
In Asia, revenue increased by 15.4%, to JPY 678.0 billion (USD 6,433 million) from the same period last year mainly due to increased revenue in motorcycle business operations and favorable foreign currency translation effects, despite decreased revenue in automobile business operations. Operating income increased by 23.4%, to JPY 50.0 billion (USD 475 million) from the same period last year due mainly to an increase in sales volume and model mix as well as favorable foreign currency effects, despite increased SG&A expenses.
In Other regions, which includes South America, the Middle East, Africa and Oceania, revenue increased by 9.6%, to JPY 243.9 billion (USD 2,315 million) from the same period last year mainly due to increased revenue in motorcycle business operations and favorable foreign currency translation effects, despite decrease in revenue from automobile business operations. Operating income totaled JPY 7.9 billion (USD 75 million), an increase of 197.2% from the same period last year mainly due to an increase in sales volume and model mix, despite increased SG&A expenses.
Explanatory note:
United States dollar amounts have been translated from yen solely for the convenience of the reader at the rate of JPY 105.39=USD 1, the mean of the telegraphic transfer selling exchange rate and the telegraphic transfer buying exchange rate prevailing on the Tokyo foreign exchange market on December 31, 2013.
- 4 -
Nine Months Results
Honda’s consolidated net income attributable to Honda Motor Co., Ltd. for the fiscal nine months ended December 31, 2013 totaled JPY 403.5 billion, an increase of 38.5% from the same period last year. Basic net income attributable to Honda Motor Co., Ltd. per common share for the fiscal nine months amounted to JPY 223.94, an increase of JPY 62.26 from JPY 161.68 for the same period last year.
Consolidated net sales and other operating revenue for the fiscal nine months amounted to JPY 8,745.2 billion, an increase of 22.6% from the same period last year, due primarily to increased revenue in automobile and motorcycle business operations as well as favorable foreign currency translation effects.
Consolidated operating income for the fiscal nine months amounted to JPY 584.9 billion, an increase of 43.1% from the same period last year, due primarily to increase in sales volume and model mix as well as favorable foreign currency effects, despite increased SG&A and R&D expenses.
Consolidated income before income taxes and equity in income of affiliates for the fiscal nine months totaled JPY 554.2 billion, an increase of 41.8% from the same period last year.
Equity in income of affiliates amounted to JPY 95.0 billion for the fiscal nine months, an increase of 36.5% from the same period last year.
- 5 -
Business Segment
Motorcycle Business
For the nine months ended December 31, 2012 and 2013
| Unit (Thousands) | ||||||||||||||||||||||||||||||||
| Honda Group Unit Sales | Consolidated Unit Sales | |||||||||||||||||||||||||||||||
| Nine months ended Dec. 31, 2012 |
Nine months ended Dec. 31, 2013 |
Change | % | Nine months ended Dec. 31, 2012 |
Nine months ended Dec. 31, 2013 |
Change | % | |||||||||||||||||||||||||
| Motorcycle business |
11,532 | 12,521 | 989 | 8.6 | 7,020 | 7,613 | 593 | 8.4 | ||||||||||||||||||||||||
| Japan |
167 | 169 | 2 | 1.2 | 167 | 169 | 2 | 1.2 | ||||||||||||||||||||||||
| North America |
181 | 193 | 12 | 6.6 | 181 | 193 | 12 | 6.6 | ||||||||||||||||||||||||
| Europe |
127 | 117 | - 10 | - 7.9 | 127 | 117 | - 10 | - 7.9 | ||||||||||||||||||||||||
| Asia |
9,672 | 10,693 | 1,021 | 10.6 | 5,160 | 5,785 | 625 | 12.1 | ||||||||||||||||||||||||
| Other Regions |
1,385 | 1,349 | - 36 | - 2.6 | 1,385 | 1,349 | - 36 | - 2.6 | ||||||||||||||||||||||||
Notes: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.
With respect to Honda’s sales for the fiscal nine months by business segment, in motorcycle business operations, revenue from sales to external customers increased 26.0%, to JPY 1,215.1 billion from the same period last year, due mainly to increased consolidated unit sales and favorable foreign currency translation effects. Operating income totaled JPY 122.6 billion, an increase of 44.3% from the same period last year, due primarily to an increase in sales volume and model mix and favorable foreign currency effects, despite increased SG&A and R&D expenses.
Automobile Business
For the nine months ended December 31, 2012 and 2013
| Unit (Thousands) | ||||||||||||||||||||||||||||||||
| Honda Group Unit Sales | Consolidated Unit Sales | |||||||||||||||||||||||||||||||
| Nine months ended Dec. 31, 2012 |
Nine months ended Dec. 31, 2013 |
Change | % | Nine months ended Dec. 31, 2012 |
Nine months ended Dec. 31, 2013 |
Change | % | |||||||||||||||||||||||||
| Automobile business |
2,981 | 3,128 | 147 | 4.9 | 2,506 | 2,627 | 121 | 4.8 | ||||||||||||||||||||||||
| Japan |
492 | 536 | 44 | 8.9 | 486 | 532 | 46 | 9.5 | ||||||||||||||||||||||||
| North America |
1,308 | 1,371 | 63 | 4.8 | 1,308 | 1,371 | 63 | 4.8 | ||||||||||||||||||||||||
| Europe |
121 | 118 | - 3 | - 2.5 | 121 | 118 | - 3 | - 2.5 | ||||||||||||||||||||||||
| Asia |
842 | 881 | 39 | 4.6 | 373 | 384 | 11 | 2.9 | ||||||||||||||||||||||||
| Other Regions |
218 | 222 | 4 | 1.8 | 218 | 222 | 4 | 1.8 | ||||||||||||||||||||||||
Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales 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 by our Japanese finance subsidiaries are accounted for as operating leases in conformity with U.S. generally accepted accounting principles and are not included in consolidated net sales to the external customers in our automobile business. As a result, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our automobile business.
In automobile business operations, revenue from sales to external customers increased 22.0%, to JPY 6,798.0 billion from the same period last year due mainly to increased consolidated unit sales and favorable foreign currency translation effects. Operating income totaled JPY 330.7 billion, an increase of 58.5% from the same period last year, due primarily to favorable foreign currency effects, despite increased SG&A and R&D expenses.
- 6 -
Financial Services Business
Revenue from customers in the financial services business operations increased 28.6%, to JPY 510.4 billion from the same period last year due mainly to increase in revenue from operating leases and favorable foreign currency translation effects. Operating income increased 14.2% to JPY 133.9 billion from the same period last year due mainly to favorable foreign currency effects, despite an increase in SG&A expenses.
Power Product and Other Businesses
For the nine months ended December 31, 2012 and 2013
| Unit (Thousands) | ||||||||||||||||
| Honda Group Unit Sales/Consolidated Unit Sales | ||||||||||||||||
| Nine
months ended Dec. 31, 2012 |
Nine
months ended Dec. 31, 2013 |
Change | % | |||||||||||||
| Power product business |
4,108 | 4,046 | - 62 | - 1.5 | ||||||||||||
| Japan |
233 | 219 | - 14 | - 6.0 | ||||||||||||
| North America |
1,620 | 1,759 | 139 | 8.6 | ||||||||||||
| Europe |
592 | 591 | - 1 | - 0.2 | ||||||||||||
| Asia |
1,224 | 1,128 | - 96 | - 7.8 | ||||||||||||
| Other Regions |
439 | 349 | - 90 | - 20.5 | ||||||||||||
Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated net sales to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. In power product business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales for the nine months ended December 31, 2012 and for the nine months ended December 31, 2013, since no affiliate accounted for under the equity method was involved in the sale of Honda power products.
Revenue from sales to external customers in power product and other businesses increased 11.1%, to JPY 221.5 billion from the same period last year, due mainly to favorable foreign currency translation effects. Honda reported an operating loss of JPY 2.3 billion, a decrease of JPY 0.2 billion from the same period last year due mainly to decrease in sales volume and model mix in power product business operations, despite favorable foreign currency effects.
- 7 -
Geographical Information
With respect to Honda’s sales for the fiscal nine months by geographic segment, in Japan, revenue from domestic and export sales amounted to JPY 3,083.1 billion, an increase of 8.8% from the same period last year due mainly to increased revenue in automobile and motorcycle business operations. Operating income totaled JPY 170.8 billion, an increase of 29.7% from the same period last year due mainly to favorable foreign currency effects, despite increased SG&A and R&D expenses.
In North America, revenue increased by 29.8%, to JPY 4,564.6 billion from the same period last year due mainly to increased revenue in automobile business operations, as well as favorable foreign currency translation effects. Operating income totaled JPY 249.0 billion, an increase of 38.5% from the same period last year due mainly to an increase in sales volume and model mix, and favorable foreign currency effects, despite an increase in SG&A expenses.
In Europe, revenue increased by 22.0%, to JPY 531.2 billion from the same period last year mainly due to favorable foreign currency translation effects, despite decreased revenue in automobile and motorcycle business operations. Honda reported an operating loss of JPY 32.0 billion, a decline of JPY 12.1 billion from the same period last year mainly due to a decrease in sales volume and model mix, despite decreased SG&A expenses and favorable foreign currency effects.
In Asia, revenue increased by 26.8%, to JPY 2,078.6 billion from the same period last year mainly due to increased revenue in motorcycle business operations as well as favorable foreign currency translation effects. Operating income increased by 50.7%, to JPY 163.8 billion from the same period last year due mainly to an increase in sales volume and model mix as well as favorable foreign currency effects, despite increased SG&A expenses.
In Other regions, which includes South America, the Middle East, Africa and Oceania, revenue increased by 13.8%, to JPY 765.1 billion from the same period last year mainly due to increased revenue in motorcycle and automobile business operations as well as favorable foreign currency translation effects. Operating income totaled JPY 31.9 billion, an increase of 25.5% from the same period last year mainly due to an increase in sales volume and model mix, despite increased SG&A expenses.
- 8 -
Consolidated Statements of Balance Sheets for the Fiscal Nine Months Ended December 31, 2013
Total assets increased by JPY 1,911.5 billion, to JPY 15,546.9 billion from March 31, 2013, mainly due to increases in Finance subsidiaries’ long-term receivables and Property, plant and equipment, property on operating leases as well as foreign currency translation effects. Total liabilities increased by JPY 1,149.8 billion, to JPY 9,579.7 billion from March 31, 2013, mainly due to an increase in long-term debt and foreign currency translation effects. Total equity increased by JPY 761.7 billion, to JPY 5,967.1 billion from March 31, 2013 due mainly to additional net income and foreign currency translation effects.
- 9 -
Consolidated Statements of Cash Flow for the Fiscal Nine Months Ended December 31, 2013
Consolidated cash and cash equivalents on December 31, 2013 increased by JPY 8.4 billion from March 31, 2013, to JPY 1,214.5 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the same period of the previous fiscal year, are as follows:
Cash flow from operating activities
Net cash provided by operating activities amounted to JPY 870.4 billion for the fiscal nine months ended December 31, 2013. Cash inflows from operating activities increased by JPY 337.8 billion compared with the same period of the previous fiscal year due mainly to an increase in cash received from customers as a result of increased unit sales of automobiles, despite increased payments for parts and raw materials.
Cash flow from investing activities
Net cash used in investing activities amounted to JPY 1,344.4 billion. Cash outflows from investing activities increased by JPY 562.6 billion compared with the same period of the previous fiscal year, due mainly to an increase in acquisitions of finance subsidiaries-receivables and purchases of operating lease assets, despite an increase in collections of finance subsidiaries-receivables.
Cash flow from financing activities
Net cash provided by financing activities amounted to JPY 413.2 billion. Cash inflows from financing activities increased by JPY 269.0 billion compared with the same period of the previous fiscal year, due mainly to an increase in proceeds from debt, despite increase in cash outflow due to an increase in dividends paid.
- 10 -
Forecasts for the Fiscal Year Ending March 31, 2014
In regard to the forecasts of the financial results for the fiscal year ending March 31, 2014, Honda projects consolidated results to be as shown below:
Fiscal year ending March 31, 2014
| Yen (billions) | Changes from FY 2013 | |||||||
| Net sales and other operating revenue |
12,100.0 | + 22.5 | % | |||||
| Operating income |
780.0 | + 43.2 | % | |||||
| Income before income taxes and equity in income of affiliates |
755.0 | + 54.4 | % | |||||
| Net income attributable to Honda Motor Co., Ltd. |
580.0 | + 58.0 | % | |||||
| Yen | ||||||||
| Basic net income attributable to Honda Motor Co., Ltd. per common share |
321.81 | |||||||
Note: The forecasts are based on the assumption that the average exchange rates for the Japanese yen to the U.S. dollar and the Euro will be JPY 100 and JPY 134, respectively, for the full year ending March 31, 2014.
The reasons for the increases or decreases in the forecasts of the operating income, and income before income taxes and equity in income of affiliates for the fiscal year ending March 31, 2014 from the previous year are as follows.
| Yen (billions) | ||||
| Revenue, model mix, etc. |
102.6 | |||
| Cost reduction, the effect of raw material cost fluctuations, etc. |
20.0 | |||
| SG&A expenses |
- 118.0 | |||
| R&D expenses |
- 47.5 | |||
| Currency effect |
278.0 | |||
|
|
|
|||
| Operating income compared with fiscal year 2013 |
235.1 | |||
|
|
|
|||
| Fair value of derivative instruments |
69.0 | |||
| Others |
- 38.1 | |||
|
|
|
|||
| Income before income taxes and equity in income of affiliates compared with fiscal year 2013 |
266.1 | |||
|
|
|
|||
- 11 -
Dividend per Share of Common Stock
The Board of Directors of Honda Motor Co., Ltd., at its meeting held on January 31, 2014, resolved to make the quarterly dividend JPY 20 per share of common stock, the record date of which is December 31, 2013.
The year-end dividend and total annual dividend per share of common stock for the fiscal year ending March 31, 2014 are expected to be JPY 20 and JPY 80 per share, respectively.
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 Honda’s actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Honda’s principal markets and foreign exchange rates between the Japanese yen and the U.S. dollar, the Euro and other major currencies, as well as other factors detailed from time to time.
- 12 -
Other Information
1. Accounting policies specifically applied for quarterly consolidated financial statements
(a) Income taxes
Honda computes interim income tax expense (benefit) by multiplying reasonably estimated annual effective tax rate, which includes the effects of deferred taxes, by year-to-date income before income taxes and equity in income of affiliates for the fiscal nine months ended December 31, 2013. If a reliable estimate cannot be made, Honda utilizes the actual year-to-date effective tax rate.
2. Changes in accounting policy
(a) Adoption of New Accounting Pronouncements
In February 2013, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2013-02 “Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income”. This amendment requires reporting entities to provide information about the amounts reclassified out of accumulated other comprehensive income by component, and to present, either on the face of the statement where net income is presented or in the notes, significant amounts reclassified out of accumulated other comprehensive income by the respective line items of net income.
Honda adopted ASU 2013-02, effective April 1, 2013. This adoption has no impact on the Honda’s financial position or results of operations.
(b) Changing in Fiscal Year-end of a Subsidiary
Effective April 1, 2013, a subsidiary of the Company changed its fiscal year-end from December 31 to March 31. As a result, the Company eliminated the previously existing three month differences between the reporting periods of the Company and the subsidiary in the consolidated financial statements. The elimination of the lag period represents a change in accounting principle and has been reported by retrospective application. The impacts on the retained earnings and noncontrolling interests as of April 1, 2012 are JPY 6,023 million and JPY 1,658 million, respectively. Honda believes the effect of the retrospective application is not material to the Company’s consolidated financial statements as of and for the nine months and the three months ended December 31, 2012, and therefore the Company’s consolidated financial statements have not been retrospectively adjusted, except for the adjustment to retained earnings and noncontrolling interests as of April 1, 2012.
- 13 -
Consolidated Financial Summary
For the three months and nine months ended December 31, 2012 and 2013
Financial Highlights
| Yen (millions) | ||||||||||||||||
| Three months ended Dec. 31, 2012 Unaudited |
Three months ended Dec. 31, 2013 Unaudited |
Nine months ended Dec. 31, 2012 unaudited |
Nine months ended Dec. 31, 2013 Unaudited |
|||||||||||||
| Net sales and other operating revenue |
2,425,792 | 3,020,889 | 7,132,987 | 8,745,205 | ||||||||||||
| Operating income |
131,941 | 228,574 | 408,821 | 584,988 | ||||||||||||
| Income before income taxes and equity in income of affiliates |
89,777 | 216,612 | 390,817 | 554,234 | ||||||||||||
| Net income attributable to Honda Motor Co., Ltd. |
77,441 | 160,732 | 291,397 | 403,599 | ||||||||||||
| Yen | ||||||||||||||||
| Basic net income attributable to Honda Motor Co., Ltd per common share |
42.97 | 89.18 | 161.68 | 223.94 | ||||||||||||
| U.S. Dollar (millions) | ||||||||||||||||
| Three months ended Dec. 31, 2013 Unaudited |
Nine months ended Dec. 31, 2013 Unaudited |
|||||||||||||||
| Net sales and other operating revenue |
28,664 | 82,979 | ||||||||||||||
| Operating income |
2,169 | 5,551 | ||||||||||||||
| Income before income taxes and equity in income of affiliates |
2,055 | 5,259 | ||||||||||||||
| Net income attributable to Honda Motor Co., Ltd. |
1,525 | 3,830 | ||||||||||||||
| U.S. Dollar | ||||||||||||||||
| Basic net income attributable to Honda Motor Co., Ltd per common share |
0.85 | 2.12 | ||||||||||||||
- 14 -
[1] Consolidated Balance Sheets
| Yen (millions) | ||||||||
| Mar. 31,
2013 audited |
Dec. 31, 2013 unaudited |
|||||||
| Assets |
||||||||
| Current assets: |
||||||||
| Cash and cash equivalents |
1,206,128 | 1,214,594 | ||||||
| Trade accounts and notes receivable |
1,005,981 | 1,035,190 | ||||||
| Finance subsidiaries-receivables, net |
1,243,002 | 1,477,091 | ||||||
| Inventories |
1,215,421 | 1,318,174 | ||||||
| Deferred income taxes |
234,075 | 210,023 | ||||||
| Other current assets |
418,446 | 456,037 | ||||||
|
|
|
|
|
|||||
| Total current assets |
5,323,053 | 5,711,109 | ||||||
|
|
|
|
|
|||||
| Finance subsidiaries-receivables, net |
2,788,135 | 3,407,530 | ||||||
| Investments and advances: |
||||||||
| Investments in and advances to affiliates |
459,110 | 582,026 | ||||||
| Other, including marketable equity securities |
209,680 | 287,745 | ||||||
|
|
|
|
|
|||||
| Total investments and advances |
668,790 | 869,771 | ||||||
|
|
|
|
|
|||||
| Property on operating leases: |
||||||||
| Vehicles |
2,243,424 | 2,704,860 | ||||||
| Less accumulated depreciation |
400,292 | 477,112 | ||||||
|
|
|
|
|
|||||
| Net property on operating leases |
1,843,132 | 2,227,748 | ||||||
|
|
|
|
|
|||||
| Property, plant and equipment, at cost: |
||||||||
| Land |
515,661 | 520,332 | ||||||
| Buildings |
1,686,638 | 1,836,040 | ||||||
| Machinery and equipment |
3,832,090 | 4,345,096 | ||||||
| Construction in progress |
288,073 | 317,642 | ||||||
|
|
|
|
|
|||||
| 6,322,462 | 7,019,110 | |||||||
| Less accumulated depreciation and amortization |
3,922,932 | 4,321,819 | ||||||
|
|
|
|
|
|||||
| Net property, plant and equipment |
2,399,530 | 2,697,291 | ||||||
|
|
|
|
|
|||||
| Other assets |
612,717 | 633,470 | ||||||
|
|
|
|
|
|||||
| Total assets |
13,635,357 | 15,546,919 | ||||||
|
|
|
|
|
|||||
- 15 -
[1] Consolidated Balance Sheets – continued
| Yen (millions) | ||||||||
| Mar. 31,
2013 audited |
Dec. 31,
2013 unaudited |
|||||||
| Liabilities and Equity |
||||||||
| Current liabilities: |
||||||||
| Short-term debt |
1,238,297 | 1,460,223 | ||||||
| Current portion of long-term debt |
945,046 | 1,100,448 | ||||||
| Trade payables: |
||||||||
| Notes |
31,354 | 24,917 | ||||||
| Accounts |
956,660 | 951,867 | ||||||
| Accrued expenses |
593,570 | 553,334 | ||||||
| Income taxes payable |
48,454 | 48,832 | ||||||
| Other current liabilities |
275,623 | 345,422 | ||||||
|
|
|
|
|
|||||
| Total current liabilities |
4,089,004 | 4,485,043 | ||||||
|
|
|
|
|
|||||
| Long-term debt, excluding current portion |
2,710,845 | 3,427,700 | ||||||
| Other liabilities |
1,630,085 | 1,667,022 | ||||||
|
|
|
|
|
|||||
| Total liabilities |
8,429,934 | 9,579,765 | ||||||
|
|
|
|
|
|||||
| Equity: |
||||||||
| Honda Motor Co., Ltd. shareholders’ equity: |
||||||||
| Common stock, authorized 7,086,000,000 shares; issued 1,811,428,430 shares on Mar. 31, 2013 and 1,811,428,430 shares on Dec. 31, 2013 |
86,067 | 86,067 | ||||||
| Capital surplus |
171,117 | 171,117 | ||||||
| Legal reserves |
47,583 | 48,986 | ||||||
| Retained earnings |
6,001,649 | 6,297,510 | ||||||
| Accumulated other comprehensive income (loss), net |
(1,236,792 | ) | (798,542 | ) | ||||
| Treasury stock, at cost 9,131,140 shares on Mar. 31, 2013 and 9,136,201 shares on Dec. 31, 2013 |
(26,124 | ) | (26,145 | ) | ||||
|
|
|
|
|
|||||
| Total Honda Motor Co., Ltd. shareholders’ equity |
5,043,500 | 5,778,993 | ||||||
|
|
|
|
|
|||||
| Noncontrolling interests |
161,923 | 188,161 | ||||||
|
|
|
|
|
|||||
| Total equity |
5,205,423 | 5,967,154 | ||||||
|
|
|
|
|
|||||
| Commitments and contingent liabilities |
||||||||
|
|
|
|
|
|||||
| Total liabilities and equity |
13,635,357 | 15,546,919 | ||||||
|
|
|
|
|
|||||
- 16 -
[2] Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
For the three months ended December 31, 2012 and 2013
| Yen (millions) | ||||||||
| Three months ended Dec. 31, 2012 unaudited |
Three months ended Dec. 31, 2013 unaudited |
|||||||
| Net sales and other operating revenue |
2,425,792 | 3,020,889 | ||||||
| Operating costs and expenses: |
||||||||
| Cost of sales |
1,800,557 | 2,208,846 | ||||||
| Selling, general and administrative |
354,767 | 425,949 | ||||||
| Research and development |
138,527 | 157,520 | ||||||
|
|
|
|
|
|||||
| 2,293,851 | 2,792,315 | |||||||
|
|
|
|
|
|||||
| Operating income |
131,941 | 228,574 | ||||||
| Other income (expenses): |
||||||||
| Interest income |
5,561 | 5,620 | ||||||
| Interest expense |
(2,812 | ) | (3,849 | ) | ||||
| Other, net |
(44,913 | ) | (13,733 | ) | ||||
|
|
|
|
|
|||||
| (42,164 | ) | (11,962 | ) | |||||
|
|
|
|
|
|||||
| Income before income taxes and equity in income of affiliates |
89,777 | 216,612 | ||||||
| Income tax expense: |
||||||||
| Current |
30,295 | 65,519 | ||||||
| Deferred |
(2,199 | ) | 14,592 | |||||
|
|
|
|
|
|||||
| 28,096 | 80,111 | |||||||
|
|
|
|
|
|||||
| Income before equity in income of affiliates |
61,681 | 136,501 | ||||||
| Equity in income of affiliates |
21,411 | 31,631 | ||||||
|
|
|
|
|
|||||
| Net income |
83,092 | 168,132 | ||||||
| Less: Net income attributable to noncontrolling interests |
5,651 | 7,400 | ||||||
|
|
|
|
|
|||||
| Net income attributable to Honda Motor Co., Ltd. |
77,441 | 160,732 | ||||||
|
|
|
|
|
|||||
| Yen | ||||||||
| Basic net income attributable to Honda Motor Co., Ltd. per common share |
42.97 | 89.18 | ||||||
- 17 -
Consolidated Statements of Comprehensive Income
For the three months ended December 31, 2012 and 2013
| Yen (millions) | ||||||||
| Three months ended Dec. 31, 2012 unaudited |
Three months ended Dec. 31, 2013 unaudited |
|||||||
| Net income |
83,092 | 168,132 | ||||||
| Other comprehensive income (loss), net of tax: |
||||||||
| Adjustments from foreign currency translation |
256,312 | 190,374 | ||||||
| Unrealized gains (losses) on available-for-sale securities, net |
8,339 | 4,197 | ||||||
| Unrealized gains (losses) on derivative instruments, net |
(842 | ) | (587 | ) | ||||
| Pension and other postretirement benefits adjustments |
1,846 | (12,096 | ) | |||||
|
|
|
|
|
|||||
| Other comprehensive income (loss), net of tax |
265,655 | 181,888 | ||||||
|
|
|
|
|
|||||
| Comprehensive income (loss) |
348,747 | 350,020 | ||||||
| Less: Comprehensive income attributable to noncontrolling interests |
10,736 | 11,778 | ||||||
|
|
|
|
|
|||||
| Comprehensive income (loss) attributable to Honda Motor Co., Ltd. |
338,011 | 338,242 | ||||||
|
|
|
|
|
|||||
- 18 -
Consolidated Statements of Income
For the nine months ended December 31, 2012 and 2013
| Yen (millions) | ||||||||
| Nine months ended Dec. 31, 2012 unaudited |
Nine months ended Dec. 31, 2013 unaudited |
|||||||
| Net sales and other operating revenue |
7,132,987 | 8,745,205 | ||||||
| Operating costs and expenses: |
||||||||
| Cost of sales |
5,294,606 | 6,484,067 | ||||||
| Selling, general and administrative |
1,024,922 | 1,225,873 | ||||||
| Research and development |
404,638 | 450,277 | ||||||
|
|
|
|
|
|||||
| 6,724,166 | 8,160,217 | |||||||
|
|
|
|
|
|||||
| Operating income |
408,821 | 584,988 | ||||||
| Other income (expenses): |
||||||||
| Interest income |
19,921 | 17,540 | ||||||
| Interest expense |
(8,943 | ) | (9,661 | ) | ||||
| Other, net |
(28,982 | ) | (38,633 | ) | ||||
|
|
|
|
|
|||||
| (18,004 | ) | (30,754 | ) | |||||
|
|
|
|
|
|||||
| Income before income taxes and equity in income of affiliates |
390,817 | 554,234 | ||||||
| Income tax expense: |
||||||||
| Current |
104,081 | 168,527 | ||||||
| Deferred |
46,661 | 51,853 | ||||||
|
|
|
|
|
|||||
| 150,742 | 220,380 | |||||||
|
|
|
|
|
|||||
| Income before equity in income of affiliates |
240,075 | 333,854 | ||||||
| Equity in income of affiliates |
69,640 | 95,084 | ||||||
|
|
|
|
|
|||||
| Net income |
309,715 | 428,938 | ||||||
| Less: Net income attributable to noncontrolling interests |
18,318 | 25,339 | ||||||
|
|
|
|
|
|||||
| Net income attributable to Honda Motor Co., Ltd. |
291,397 | 403,599 | ||||||
|
|
|
|
|
|||||
| Yen | ||||||||
| Basic net income attributable to Honda Motor Co., Ltd. per common share |
161.68 | 223.94 | ||||||
- 19 -
Consolidated Statements of Comprehensive Income
For the nine months ended December 31, 2012 and 2013
| Yen (millions) | ||||||||
| Nine months ended Dec. 31, 2012 unaudited |
Nine months ended Dec. 31, 2013 unaudited |
|||||||
| Net income |
309,715 | 428,938 | ||||||
| Other comprehensive income (loss), net of tax: |
||||||||
| Adjustments from foreign currency translation |
104,013 | 356,124 | ||||||
| Unrealized gains (losses) on available-for-sale securities, net |
(3,889 | ) | 22,647 | |||||
| Unrealized gains (losses) on derivative instruments, net |
(493 | ) | (241 | ) | ||||
| Pension and other postretirement benefits adjustments |
6,112 | 69,298 | ||||||
|
|
|
|
|
|||||
| Other comprehensive income (loss), net of tax |
105,743 | 447,828 | ||||||
|
|
|
|
|
|||||
| Comprehensive income (loss) |
415,458 | 876,766 | ||||||
| Less: Comprehensive income attributable to noncontrolling interests |
21,560 | 34,917 | ||||||
|
|
|
|
|
|||||
| Comprehensive income (loss) attributable to Honda Motor Co., Ltd. |
393,898 | 841,849 | ||||||
|
|
|
|
|
|||||
- 20 -
[3] Consolidated Statements of Cash Flows
| Yen (millions) | ||||||||
| Nine months ended Dec. 31, 2012 unaudited |
Nine months ended Dec. 31, 2013 unaudited |
|||||||
| Cash flows from operating activities: |
||||||||
| Net income |
309,715 | 428,938 | ||||||
| Adjustments to reconcile net income to net cash provided by operating activities: |
||||||||
| Depreciation excluding property on operating leases |
240,115 | 327,932 | ||||||
| Depreciation of property on operating leases |
182,193 | 253,920 | ||||||
| Deferred income taxes |
46,661 | 51,853 | ||||||
| Equity in income of affiliates |
(69,640 | ) | (95,084 | ) | ||||
| Dividends from affiliates |
36,053 | 17,027 | ||||||
| Provision for credit and lease residual losses on finance subsidiaries-receivables |
5,890 | 15,828 | ||||||
| Impairment loss on property on operating leases |
3,501 | 2,798 | ||||||
| Loss (gain) on derivative instruments, net |
29,941 | (24,656 | ) | |||||
| Decrease (increase) in assets: |
||||||||
| Trade accounts and notes receivable |
45,104 | 42,855 | ||||||
| Inventories |
(143,483 | ) | (9,686 | ) | ||||
| Other current assets |
44,359 | 10,633 | ||||||
| Other assets |
(21,006 | ) | (16,228 | ) | ||||
| Increase (decrease) in liabilities: |
||||||||
| Trade accounts and notes payable |
(162,593 | ) | (33,090 | ) | ||||
| Accrued expenses |
(12,676 | ) | (33,446 | ) | ||||
| Income taxes payable |
10,354 | (2,323 | ) | |||||
| Other current liabilities |
41,107 | 56,701 | ||||||
| Other liabilities |
(10,198 | ) | (47,431 | ) | ||||
| Other, net |
(42,709 | ) | (76,044 | ) | ||||
|
|
|
|
|
|||||
| Net cash provided by operating activities |
532,688 | 870,497 | ||||||
|
|
|
|
|
|||||
| Cash flows from investing activities: |
||||||||
| Increase in investments and advances |
(15,031 | ) | (33,959 | ) | ||||
| Decrease in investments and advances |
15,786 | 32,342 | ||||||
| Payments for purchases of available-for-sale securities |
— | (35,771 | ) | |||||
| Proceeds from sales of available-for-sale securities |
682 | 6,614 | ||||||
| Payments for purchases of held-to-maturity securities |
(3,611 | ) | (19,146 | ) | ||||
| Proceeds from redemptions of held-to-maturity securities |
9,207 | 1,762 | ||||||
| Capital expenditures |
(440,479 | ) | (519,034 | ) | ||||
| Proceeds from sales of property, plant and equipment |
27,487 | 20,475 | ||||||
| Proceeds from insurance recoveries for damaged property, plant and equipment |
4,665 | 6,800 | ||||||
| Acquisitions of finance subsidiaries-receivables |
(1,438,155 | ) | (2,159,681 | ) | ||||
| Collections of finance subsidiaries-receivables |
1,344,809 | 1,748,239 | ||||||
| Purchases of operating lease assets |
(573,890 | ) | (833,232 | ) | ||||
| Proceeds from sales of operating lease assets |
286,709 | 440,102 | ||||||
|
|
|
|
|
|||||
| Net cash used in investing activities |
(781,821 | ) | (1,344,489 | ) | ||||
|
|
|
|
|
|||||
- 21 -
[3] Consolidated Statements of Cash Flows – continued
| Yen (millions) | ||||||||
| Nine months ended Dec. 31, 2012 unaudited |
Nine months ended Dec. 31, 2013 unaudited |
|||||||
| Cash flows from financing activities: |
||||||||
| Proceeds from short-term debt |
4,981,439 | 7,016,475 | ||||||
| Repayments of short-term debt |
(4,741,729 | ) | (6,910,816 | ) | ||||
| Proceeds from long-term debt |
823,496 | 1,348,115 | ||||||
| Repayments of long-term debt |
(795,247 | ) | (897,783 | ) | ||||
| Dividends paid |
(95,521 | ) | (106,335 | ) | ||||
| Dividends paid to noncontrolling interests |
(6,045 | ) | (8,703 | ) | ||||
| Sales (purchases) of treasury stock, net |
(3 | ) | (21 | ) | ||||
| Other, net |
(22,122 | ) | (27,653 | ) | ||||
|
|
|
|
|
|||||
| Net cash provided by (used in) financing activities |
144,268 | 413,279 | ||||||
|
|
|
|
|
|||||
| Effect of exchange rate changes on cash and cash equivalents |
16,254 | 69,179 | ||||||
|
|
|
|
|
|||||
| Net change in cash and cash equivalents |
(88,611 | ) | 8,466 | |||||
|
|
|
|
|
|||||
| Cash and cash equivalents at beginning of the year |
1,247,113 | 1,206,128 | ||||||
|
|
|
|
|
|||||
| Cash and cash equivalents at end of the period |
1,158,502 | 1,214,594 | ||||||
|
|
|
|
|
|||||
- 22 -
[4] Assumptions for Going Concern
None
[5] Significant changes in Honda Motor Co., Ltd. shareholders’ equity
None
- 23 -
[6] Segment Information
Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Power product and other businesses, which are based on Honda’s organizational structure and characteristics of products and services. Operating segments are defined as components of Honda’s about 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 these reportable segments are consistent with the accounting policies used in Honda’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) and relevant parts |
Research & Development, Manufacturing, Sales and related services | ||
| Automobile Business |
Automobiles and relevant parts | Research & Development, Manufacturing Sales and related services | ||
| Financial Services Business |
Financial, insurance services | Retail loan and lease related to Honda products, and Others | ||
| Power Product and Other Businesses |
Power products and relevant parts, and others | Research & Development, Manufacturing Sales and related services, and Others | ||
1. Segment information based on products and services
(A) For the three months ended December 31, 2012
| Yen (millions) | ||||||||||||||||||||||||||||
| Motorcycle Business |
Automobile Business |
Financial Services Business |
Power Product and Other Businesses |
Segment Total |
Reconciling Items |
Consolidated | ||||||||||||||||||||||
| Net sales and other operating revenue: |
||||||||||||||||||||||||||||
| External customers |
307,814 | 1,915,552 | 135,329 | 67,097 | 2,425,792 | — | 2,425,792 | |||||||||||||||||||||
| Intersegment |
— | 2,877 | 2,827 | 4,214 | 9,918 | (9,918 | ) | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total |
307,814 | 1,918,429 | 138,156 | 71,311 | 2,435,710 | (9,918 | ) | 2,425,792 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Segment income (loss) |
22,803 | 70,926 | 38,136 | 76 | 131,941 | — | 131,941 | |||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
For the three months ended December 31, 2013
| Yen (millions) | ||||||||||||||||||||||||||||
| Motorcycle Business |
Automobile Business |
Financial Services Business |
Power Product and Other Businesses |
Segment Total |
Reconciling Items |
Consolidated | ||||||||||||||||||||||
| Net sales and other operating revenue: |
||||||||||||||||||||||||||||
| External customers |
400,149 | 2,372,498 | 175,016 | 73,226 | 3,020,889 | — | 3,020,889 | |||||||||||||||||||||
| Intersegment |
— | 5,213 | 2,590 | 5,380 | 13,183 | (13,183 | ) | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total |
400,149 | 2,377,711 | 177,606 | 78,606 | 3,034,072 | (13,183 | ) | 3,020,889 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Segment income (loss) |
34,520 | 154,242 | 42,709 | (2,897 | ) | 228,574 | — | 228,574 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
- 24 -
(B) As of and for the nine months ended December 31, 2012
| Yen (millions) | ||||||||||||||||||||||||||||
| Motorcycle Business |
Automobile Business |
Financial Services Business |
Power Product and Other Businesses |
Segment Total |
Reconciling Items |
Consolidated | ||||||||||||||||||||||
| Net sales and other operating revenue: |
||||||||||||||||||||||||||||
| External customers |
964,178 | 5,572,275 | 397,008 | 199,526 | 7,132,987 | — | 7,132,987 | |||||||||||||||||||||
| Intersegment |
— | 10,709 | 8,344 | 9,032 | 28,085 | (28,085 | ) | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total |
964,178 | 5,582,984 | 405,352 | 208,558 | 7,161,072 | (28,085 | ) | 7,132,987 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Segment income (loss) |
85,005 | 208,724 | 117,250 | (2,158 | ) | 408,821 | — | 408,821 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Assets |
981,005 | 5,330,011 | 6,197,252 | 295,000 | 12,803,268 | (277,946 | ) | 12,525,322 | ||||||||||||||||||||
| Depreciation and amortization |
25,644 | 207,511 | 183,151 | 6,002 | 422,308 | — | 422,308 | |||||||||||||||||||||
| Capital expenditures |
42,650 | 358,004 | 574,903 | 9,864 | 985,421 | — | 985,421 | |||||||||||||||||||||
As of and for the nine months ended December 31, 2013
| Yen (millions) | ||||||||||||||||||||||||||||
| Motorcycle Business |
Automobile Business |
Financial Services Business |
Power Product and Other Businesses |
Segment Total |
Reconciling Items |
Consolidated | ||||||||||||||||||||||
| Net sales and other operating revenue: |
||||||||||||||||||||||||||||
| External customers |
1,215,108 | 6,798,093 | 510,428 | 221,576 | 8,745,205 | — | 8,745,205 | |||||||||||||||||||||
| Intersegment |
— | 13,803 | 7,749 | 10,937 | 32,489 | (32,489 | ) | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Total |
1,215,108 | 6,811,896 | 518,177 | 232,513 | 8,777,694 | (32,489 | ) | 8,745,205 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Segment income (loss) |
122,644 | 330,772 | 133,937 | (2,365 | ) | 584,988 | — | 584,988 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||
| Assets |
1,255,574 | 6,218,830 | 8,082,774 | 347,236 | 15,904,414 | (357,495 | ) | 15,546,919 | ||||||||||||||||||||
| Depreciation and amortization |
34,171 | 284,338 | 255,567 | 7,776 | 581,852 | — | 581,852 | |||||||||||||||||||||
| Capital expenditures |
37,863 | 436,741 | 835,991 | 10,347 | 1,320,942 | — | 1,320,942 | |||||||||||||||||||||
Explanatory notes:
| 1. | Intersegment sales and revenues are generally made at values that approximate arm’s-length prices. |
| 2. | Unallocated corporate assets, included in reconciling items, amounted to JPY 250,392 million as of December 31, 2012 and JPY 305,906 million as of December 31, 2013 respectively, which consist primarily of cash and cash equivalents, available-for-sale securities and held-to-maturity securities held by the Company. Reconciling items also include elimination of intersegment transactions. |
| 3. | Depreciation and amortization of Financial Services Business include JPY 182,193 million for the nine months ended December 31, 2012 and JPY 253,920 million for the nine months ended December 31, 2013, respectively, of depreciation of property on operating leases. |
| 4. | Capital expenditure of Financial Services Business includes JPY 573,890 million for the nine months ended December 31, 2012 and JPY 833,232 million for the nine months ended December 31, 2013 respectively, of purchase of operating lease assets. |
| 5. | The amounts of Assets and Depreciation and amortization for the nine months ended December 31, 2012 have been corrected from the amounts previously disclosed. |
- 25 -
In addition to the disclosure required by U.S. GAAP, Honda provides the following supplemental information in order to provide financial statements users with useful information:
2. Supplemental geographical information based on the location of the Company and its subsidiaries
(A) For the three months ended December 31, 2012
| Yen (millions) | ||||||||||||||||||||||||||||||||
| Japan | North America |
Europe | Asia | Other Regions |
Total | Reconciling Items |
Consolidated | |||||||||||||||||||||||||
| Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||
| External customers |
408,108 | 1,196,301 | 113,077 | 490,606 | 217,700 | 2,425,792 | — | 2,425,792 | ||||||||||||||||||||||||
| Transfers between geographic areas |
494,282 | 49,564 | 29,729 | 96,805 | 4,823 | 675,203 | (675,203 | ) | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
902,390 | 1,245,865 | 142,806 | 587,411 | 222,523 | 3,100,995 | (675,203 | ) | 2,425,792 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating income (loss) |
40,734 | 70,892 | (3,582 | ) | 40,572 | 2,662 | 151,278 | (19,337 | ) | 131,941 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
For the three months ended December 31, 2013
| Yen (millions) | ||||||||||||||||||||||||||||||||
| Japan | North America |
Europe | Asia | Other Regions |
Total | Reconciling Items |
Consolidated | |||||||||||||||||||||||||
| Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||
| External customers |
587,390 | 1,486,584 | 153,428 | 552,569 | 240,918 | 3,020,889 | — | 3,020,889 | ||||||||||||||||||||||||
| Transfers between geographic areas |
505,413 | 104,848 | 27,332 | 125,439 | 3,068 | 766,100 | (766,100 | ) | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
1,092,803 | 1,591,432 | 180,760 | 678,008 | 243,986 | 3,786,989 | (766,100 | ) | 3,020,889 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating income (loss) |
59,366 | 131,128 | (8,751 | ) | 50,061 | 7,911 | 239,715 | (11,141 | ) | 228,574 | ||||||||||||||||||||||
|
|
|
|
|
|
|
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|
|
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|
|
|
|||||||||||||||||
- 26 -
(B) As of and for the nine months ended December 31, 2012
| Yen (millions) | ||||||||||||||||||||||||||||||||
| Japan | North America |
Europe | Asia | Other Regions |
Total | Reconciling Items |
Consolidated | |||||||||||||||||||||||||
| Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||
| External customers |
1,407,673 | 3,343,646 | 360,556 | 1,364,147 | 656,965 | 7,132,987 | — | 7,132,987 | ||||||||||||||||||||||||
| Transfers between geographic areas |
1,426,461 | 171,692 | 74,700 | 275,535 | 15,572 | 1,963,960 | (1,963,960 | ) | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
2,834,134 | 3,515,338 | 435,256 | 1,639,682 | 672,537 | 9,096,947 | (1,963,960 | ) | 7,132,987 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating income (loss) |
131,759 | 179,858 | (19,941 | ) | 108,726 | 25,481 | 425,883 | (17,062 | ) | 408,821 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Assets |
3,157,163 | 6,909,128 | 578,799 | 1,335,433 | 630,408 | 12,610,931 | (85,609 | ) | 12,525,322 | |||||||||||||||||||||||
| Long-lived assets |
1,099,664 | 2,265,033 | 117,260 | 353,154 | 125,222 | 3,960,333 | — | 3,960,333 | ||||||||||||||||||||||||
As of and for the nine months ended December 31, 2013
| Yen (millions) | ||||||||||||||||||||||||||||||||
| Japan | North America |
Europe | Asia | Other Regions |
Total | Reconciling Items |
Consolidated | |||||||||||||||||||||||||
| Net sales and other operating revenue: |
||||||||||||||||||||||||||||||||
| External customers |
1,525,930 | 4,276,802 | 467,107 | 1,719,827 | 755,539 | 8,745,205 | — | 8,745,205 | ||||||||||||||||||||||||
| Transfers between geographic areas |
1,557,227 | 287,851 | 64,110 | 358,802 | 9,615 | 2,277,605 | (2,277,605 | ) | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Total |
3,083,157 | 4,564,653 | 531,217 | 2,078,629 | 765,154 | 11,022,810 | (2,277,605 | ) | 8,745,205 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Operating income (loss) |
170,834 | 249,015 | (32,065 | ) | 163,836 | 31,977 | 583,597 | 1,391 | 584,988 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||||||
| Assets |
3,358,668 | 8,971,157 | 680,265 | 1,901,843 | 754,394 | 15,666,327 | (119,408 | ) | 15,546,919 | |||||||||||||||||||||||
| Long-lived assets |
1,231,875 | 2,987,988 | 136,349 | 545,648 | 155,123 | 5,056,983 | — | 5,056,983 | ||||||||||||||||||||||||
Explanatory notes:
| 1. | Major countries or regions in each geographic area: |
| North America |
United States, Canada, Mexico | |
| Europe |
United Kingdom, Germany, France, Belgium, Russia | |
| Asia |
Thailand, Indonesia, China, India, Vietnam | |
| Other Regions |
Brazil, Australia |
| 2. | Sales and revenues between geographic areas are generally made at values that approximate arm’s-length prices. |
| 3. | Unallocated corporate assets, included in reconciling items, amounted to JPY 250,392 million as of December 31, 2012 and JPY 305,906 million as of December 30, 2013 respectively, which consist primarily of cash and cash equivalents, available-for-sale securities and held-to-maturity securities held by the Company. Reconciling items also include elimination of transactions between geographic areas. |
| 4. | The amounts of Assets for the nine months ended December 31, 2012 have been corrected from the amounts previously disclosed. |
- 27 -
[7] Other
1. Impairment loss on investments in affiliates
For the nine months ended December 31, 2012, Honda recognized impairment loss of JPY 7,273 million, net of tax, on certain investments in affiliates which have quoted market values because of other-than-temporary decline in fair value below their carrying values. The fair values of the investments were based on quoted market price. The impairment loss is included in equity in income of affiliates in the accompanying consolidated statement of income. For the three months ended December 31, 2012 and for the nine and the three months ended December 31, 2013, Honda did not recognize any significant impairment losses.
2. Immaterial corrections of the prior year’s Consolidated Statements of Cash Flows
Adjustments have been made to correct previous immaterial understatements in both depreciation excluding property on operating leases, which is included in cash flows from operating activities, and payments of other debt, which is included in other, net in cash flows from financing activities, in the consolidated statements of cash flows for the nine months ended December 31, 2012. These adjustments increased previously reported net cash provided by operating activities and increased previously reported net cash used in financing activities by JPY 20,508 million for the nine months ended December 31, 2012.
3. Impact of the plan amendment and curtailment in consolidated subsidiaries on the Company’s consolidated financial position and results of operations
In September 2013, certain consolidated subsidiaries in North America amended their existing defined benefit pension plans, effective January 1, 2014, to reduce the benefits in future periods for their employees on or after January 1, 2014.
This plan amendment resulted in a reduction of the projected benefit obligation and recognition of the prior service benefit at the date of the plan amendment which is amortized over the average remaining service period from the date of the plan amendment. The consolidated subsidiaries also remeasured their projected benefit obligation and the fair value of related plan assets at the date of the plan amendment. The effects of the plan amendment and the remeasurement were recorded in other comprehensive income (loss), net of tax during the three months ended September 30, 2013.
Following this plan amendment, employees of these consolidated subsidiaries could elect to move from the existing defined benefit pension plans to a defined contribution pension plan on January 1, 2014. Consequently, certain employees elected to move to the defined contribution pension plan in October 2013, resulting in a curtailment in the existing defined benefit pension plans. As a result, Honda recognized ¥21,368 million of the prior service benefit included in accumulated other comprehensive income (loss) as a curtailment gain, of which ¥15,407 million is included in cost of sales and ¥5,961 million is included in selling, general and administrative expense in the accompanying consolidated statements of income for the three months ended December 31, 2013. The consolidated subsidiaries also remeasured their projected benefit obligation and the fair value of plan assets in the existing defined benefit pension plans at the date of the curtailment. The effect of the remeasurement was recorded in other comprehensive income (loss), net of tax during the three months ended December 31, 2013. This plan amendment and curtailment did not have a material impact on pension costs and contributions to the pension plan for the nine months and the three months ended December 31, 2013.
- 28 -