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 2019

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  ☒    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):  ☐

 

 

 

Contents

Exhibit 1:

On May 8, 2019, Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2019.

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.

 

Date: May 13, 2019

May 8, 2019

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL FOURTH QUARTER AND

THE FISCAL YEAR ENDED MARCH 31, 2019

Tokyo, May 8, 2019 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2019.

Fourth Quarter Results

Honda’s consolidated sales revenue for the fiscal fourth quarter ended March 31, 2019 increased by 3.4%, to JPY 4,049.1 billion from the same period last year, due mainly to increased sales revenue at automobile and financial services business operations. Operating profit for the quarter decreased by 66.6%, to JPY 42.3 billion from the same period last year, due mainly to the impact to Europe related to changes of the global automobile production network and capability as well as negative foreign currency effects, which was partially offset by continuing cost reduction. Profit before income taxes decreased by 41.7%, to JPY 111.1 billion from the same period last year. Loss for the period attributable to owners of the parent for the quarter totaled JPY 13.0 billion, a decrease of JPY 120.7 billion from the same period last year, due mainly to the increased Income tax expense.

Loss per share attributable to owners of the parent for the quarter amounted to JPY 7.40, a decrease of JPY 67.99 from the corresponding period last year. One Honda American Depository Share represents one common share.

Fiscal Year Results

Honda’s consolidated sales revenue for the fiscal year ended March 31, 2019, increased by 3.4%, to JPY 15,888.6 billion from the fiscal year ended March 31, 2018, due mainly to increased sales revenue in all business operations. Operating profit decreased by 12.9%, to JPY 726.3 billion from the previous fiscal year, due mainly to the impact to Europe related to changes of the global automobile production network and capability as well as negative foreign currency effects, which was partially offset by continuing cost reduction and the loss related to the settlement of multidistrict class action litigation in the previous fiscal year. Profit before income taxes decreased by 12.2%, to JPY 979.3 billion from the previous fiscal year. Profit for the year attributable to owners of the parent decreased by 42.4%, to JPY 610.3 billion from the previous fiscal year, due mainly to the impacts of the enactment of the Tax Cuts and Jobs Act in the United States in the previous fiscal year.

Earnings per share attributable to owners of the parent for the year amounted to JPY 345.99, a decrease of JPY 244.80 from the previous fiscal year.

 

- 1 -

Consolidated Statements of Financial Position for the Fiscal Year Ended March 31, 2019

Total assets increased by JPY 1,069.9 billion, to JPY 20,419.1 billion from March 31, 2018, mainly due to increased Receivables from financial services and Cash and cash equivalents as well as foreign currency translation effects. Total liabilities increased by JPY 738.2 billion, to JPY 11,853.3 billion from March 31, 2018, mainly due to increased Financial liabilities and foreign currency translation effects. Total equity increased by JPY 331.6 billion, to JPY 8,565.7 billion from March 31, 2018 due mainly to an increase in Retained earnings, despite a decrease attributable to acquisition of the Company’s own shares.

Consolidated Statements of Cash Flows for the Fiscal Year Ended March 31, 2019

Consolidated cash and cash equivalents on March 31, 2019 increased by JPY 237.6 billion from March 31, 2018, to JPY 2,494.1 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 775.9 billion of cash inflows. Cash inflows from operating activities decreased by JPY 211.6 billion compared with the previous fiscal year, due mainly to an increase in payments for parts and raw materials, which was partially offset by an increase in cash received from customers.

Net cash used in investing activities amounted to JPY 577.5 billion of cash outflows. Cash outflows from investing activities decreased by JPY 37.5 billion compared with the previous fiscal year, due mainly to an increase in proceeds from sales and redemptions of other financial assets.

Net cash provided by financing activities amounted to JPY 22.9 billion of cash inflows. Cash inflows from financing activities increased by JPY 197.2 billion compared with the previous fiscal year, due mainly to an increase in proceeds from financing liabilities, which was partially offset by an increase in repayments of financing liabilities.

 

- 2 -

Forecasts for the Fiscal Year Ending March 31, 2020

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2020, Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2020

 

		Yen (billions)				Changes from FY2019
Sales revenue			15,700.0				-1.2	%
Operating profit			770.0				+6.0	%
Profit before income taxes			995.0				+1.6	%
Profit for the year			730.0				+7.9	%
Profit for the year attributable to owners of the parent			665.0				+9.0	%
		Yen
Earnings per share attributable to owners of the parent
Basic and diluted			377.94

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 110 for the full year ending March 31, 2020.

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, 2020 from the previous year are as follows.

 

		Yen (billions)
Revenue, model mix, etc.			-103.4
Cost reduction, the effect of raw material cost fluctuations, etc.			+118.0
SG&A expenses			+28.0
R&D expenses			-7.0
Currency effect			-50.0
The impact to Europe related to changes of the global automobile production network and capability*			+58.0
Operating profit compared with fiscal year ended March 31, 2019			+43.6
Share of profit of investments accounted for using the equity method			-8.8
Finance income and finance costs			-19.1
Profit before income taxes compared with fiscal year ended March 31, 2019			+15.6

* The impact to Europe related to changes of the global automobile production network and capability in FY2019 was JPY 68.0 billion and the forecast for the FY2020 is JPY 10.0 billion.

Dividend per Share of Common Stock

Fiscal fourth quarter dividend is JPY 28 per share of common stock. The total annual dividend per share of common stock for the fiscal year ending March 31, 2019, is JPY 111 per share.

The Company expects to distribute quarterly cash dividends of JPY 28 per share for each quarter for the fiscal year ending March 31, 2020. As a result, total cash dividends for the fiscal year ending March 31, 2020 are expected to be JPY 112 per share.

This announcement contains “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that the actual results of the Company could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in the principal markets of the Company, its consolidated subsidiaries and its affiliates accounted for by the equity-method, and fluctuation of foreign exchange rates, as well as other factors detailed from time to time. The various factors for increases and decreases in profit have been classified in accordance with a method that Honda considers reasonable.

 

- 3 -

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 -

[1] Consolidated Statements of Financial Position

 

		Yen (millions)
		Mar. 31, 2018				Mar. 31, 2019
Assets
Current assets:
Cash and cash equivalents			2,256,488				2,494,121
Trade receivables			800,463				793,245
Receivables from financial services			1,840,699				1,951,633
Other financial assets			213,177				163,274
Inventories			1,523,455				1,586,787
Other current assets			291,006				358,234
Total current assets			6,925,288				7,347,294
Non-current assets:
Investments accounted for using the equity method			679,517				713,039
Receivables from financial services			3,117,364				3,453,617
Other financial assets			436,555				417,149
Equipment on operating leases			4,088,133				4,448,849
Property, plant and equipment			3,062,433				2,981,840
Intangible assets			741,514				744,368
Deferred tax assets			129,338				150,318
Other non-current assets			169,022				162,648
Total non-current assets			12,423,876				13,071,828
Total assets			19,349,164				20,419,122
Liabilities and Equity
Current liabilities:
Trade payables			1,224,627				1,184,882
Financing liabilities			2,917,261				3,188,782
Accrued expenses			404,719				476,300
Other financial liabilities			115,405				132,910
Income taxes payable			53,595				49,726
Provisions			305,994				348,763
Other current liabilities			602,498				599,761
Total current liabilities			5,624,099				5,981,124
Non-current liabilities:
Financing liabilities			3,881,749				4,142,338
Other financial liabilities			60,005				63,689
Retirement benefit liabilities			404,401				398,803
Provisions			220,625				220,745
Deferred tax liabilities			629,722				727,411
Other non-current liabilities			294,468				319,222
Total non-current liabilities			5,490,970				5,872,208
Total liabilities			11,115,069				11,853,332
Equity:
Common stock			86,067				86,067
Capital surplus			171,118				171,460
Treasury stock			(113,271	)			(177,827	)
Retained earnings			7,611,332				7,973,637
Other components of equity			178,292				214,383
Equity attributable to owners of the parent			7,933,538				8,267,720
Non-controlling interests			300,557				298,070
Total equity			8,234,095				8,565,790
Total liabilities and equity			19,349,164				20,419,122

 

- 5 -

[2] Consolidated Statements of Income and Consolidated Statements of Comprehensive Income

Consolidated Statements of Income

For the three months ended March 31, 2018 and 2019

 

		Yen (millions)
		Three months ended Mar. 31, 2018				Three months ended Mar. 31, 2019
Sales revenue			3,914,728				4,049,117
Operating costs and expenses:
Cost of sales			(3,073,933	)			(3,255,441	)
Selling, general and administrative			(494,956	)			(519,892	)
Research and development			(219,013	)			(231,419	)
Total operating costs and expenses			(3,787,902	)			(4,006,752	)
Operating profit (loss)			126,826				42,365
Share of profit of investments accounted for using the equity method			57,920				59,196
Finance income and finance costs:
Interest income			10,997				12,446
Interest expense			(3,677	)			(3,152	)
Other, net			(1,618	)			269
Total finance income and finance costs			5,702				9,563
Profit (loss) before income taxes			190,448				111,124
Income tax expense			(68,730	)			(115,653	)
Profit (loss) for the period			121,718				(4,529	)
Profit (loss) for the period attributable to:
Owners of the parent			107,745				(13,023	)
Non-controlling interests			13,973				8,494
		Yen
Earnings (loss) per share attributable to owners of the parent
Basic and diluted			60.59				(7.40	)

 

- 6 -

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2018 and 2019

 

		Yen (millions)
		Three months ended Mar. 31, 2018				Three months ended Mar. 31, 2019
Profit (loss) for the period			121,718				(4,529	)
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans			37,554				(23,745	)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income			(9,129	)			1,651
Share of other comprehensive income of investments accounted for using the equity method			(664	)			186
Items that may be reclassified subsequently to profit or loss
Net changes in revaluation of financial assets measured at fair value through other comprehensive income			—				108
Exchange differences on translating foreign operations			(308,991	)			65,751
Share of other comprehensive income of investments accounted for using the equity method			(8,413	)			5,071
Total other comprehensive income, net of tax			(289,643	)			49,022
Comprehensive income for the period			(167,925	)			44,493
Comprehensive income for the period attributable to:
Owners of the parent			(173,095	)			30,907
Non-controlling interests			5,170				13,586

 

- 7 -

Consolidated Statements of Income

For the years ended March 31, 2018 and 2019

 

		Yen (millions)
		Year ended Mar. 31, 2018				Year ended Mar. 31, 2019
Sales revenue			15,361,146				15,888,617
Operating costs and expenses:
Cost of sales			(12,000,581	)			(12,580,949	)
Selling, general and administrative			(1,775,151	)			(1,774,393	)
Research and development			(751,856	)			(806,905	)
Total operating costs and expenses			(14,527,588	)			(15,162,247	)
Operating profit			833,558				726,370
Share of profit of investments accounted for using the equity method			247,643				228,827
Finance income and finance costs:
Interest income			41,191				48,618
Interest expense			(12,970	)			(13,217	)
Other, net			5,551				(11,223	)
Total finance income and finance costs			33,772				24,178
Profit before income taxes			1,114,973				979,375
Income tax expense			13,666				(303,089	)
Profit for the year			1,128,639				676,286
Profit for the year attributable to:
Owners of the parent			1,059,337				610,316
Non-controlling interests			69,302				65,970
		Yen
Earnings per share attributable to owners of the parent
Basic and diluted			590.79				345.99

 

- 8 -

Consolidated Statements of Comprehensive Income

For the years ended March 31, 2018 and 2019

 

		Yen (millions)
		Year ended Mar. 31, 2018				Year ended Mar. 31, 2019
Profit for the year			1,128,639				676,286
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans			13,344				(23,745	)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income			19,288				(24,046	)
Share of other comprehensive income of investments accounted for using the equity method			1,688				(2,837	)
Items that may be reclassified subsequently to profit or loss
Net changes in revaluation of financial assets measured at fair value through other comprehensive income			—				228
Exchange differences on translating foreign operations			(204,184	)			95,568
Share of other comprehensive income of investments accounted for using the equity method			10,620				(18,847	)
Total other comprehensive income, net of tax			(159,244	)			26,321
Comprehensive income for the year			969,395				702,607
Comprehensive income for the year attributable to:
Owners of the parent			899,545				637,609
Non-controlling interests			69,850				64,998

 

- 9 -

[3] Consolidated Statements of Changes in Equity

 

		Yen (millions)
		Equity attributable to owners of the parent
		Common stock				Capital surplus				Treasury stock				Retained earnings				Other components of equity				Total				Non- controlling interests				Total equity
Balance as of April 1, 2017			86,067				171,118				(26,189	)			6,712,894				351,406				7,295,296				274,330				7,569,626
Comprehensive income for the year
Profit for the year															1,059,337								1,059,337				69,302				1,128,639
Other comprehensive income, net of tax																			(159,792	)			(159,792	)			548				(159,244	)
Total comprehensive income for the year															1,059,337				(159,792	)			899,545				69,850				969,395
Reclassification to retained earnings															13,322				(13,322	)			—								—
Transactions with owners and other
Dividends paid															(174,221	)							(174,221	)			(43,623	)			(217,844	)
Purchases of treasury stock											(87,083	)											(87,083	)							(87,083	)
Disposal of treasury stock											1												1								1
Total transactions with owners and other											(87,082	)			(174,221	)							(261,303	)			(43,623	)			(304,926	)
Balance as of March 31, 2018			86,067				171,118				(113,271	)			7,611,332				178,292				7,933,538				300,557				8,234,095
Effect of changes in accounting policy															(46,833	)			(208	)			(47,041	)			6				(47,035	)
Effect of hyperinflation															(9,454	)			14,896				5,442								5,442
Adjusted balance as of April 1, 2018			86,067				171,118				(113,271	)			7,555,045				192,980				7,891,939				300,563				8,192,502
Comprehensive income for the year
Profit for the year															610,316								610,316				65,970				676,286
Other comprehensive income, net of tax																			27,293				27,293				(972	)			26,321
Total comprehensive income for the year															610,316				27,293				637,609				64,998				702,607
Reclassification to retained earnings															5,890				(5,890	)			—								—
Transactions with owners and other
Dividends paid															(194,271	)							(194,271	)			(66,010	)			(260,281	)
Purchases of treasury stock											(64,557	)											(64,557	)							(64,557	)
Disposal of treasury stock											1												1								1
Share-based payment transactions							342																342								342
Total transactions with owners and other							342				(64,556	)			(194,271	)							(258,485	)			(66,010	)			(324,495	)
Other changes															(3,343	)							(3,343	)			(1,481	)			(4,824	)
Balance as of March 31, 2019			86,067				171,460				(177,827	)			7,973,637				214,383				8,267,720				298,070				8,565,790

 

- 10 -

[4] Consolidated Statements of Cash Flows

 

		Yen (millions)
		Year ended Mar. 31, 2018				Year ended Mar. 31, 2019
Cash flows from operating activities:
Profit before income taxes			1,114,973				979,375
Depreciation, amortization and impairment losses excluding equipment on operating leases			713,093				721,695
Share of profit of investments accounted for using the equity method			(247,643	)			(228,827	)
Finance income and finance costs, net			13,218				(88,608	)
Interest income and interest costs from financial services, net			(127,529	)			(124,076	)
Changes in assets and liabilities
Trade receivables			(41,778	)			9,344
Inventories			(202,916	)			(60,906	)
Trade payables			69,429				(11,816	)
Accrued expenses			(2,700	)			25,372
Provisions and retirement benefit liabilities			(28,945	)			(1,590	)
Receivables from financial services			(174,438	)			(260,704	)
Equipment on operating leases			(158,337	)			(230,311	)
Other assets and liabilities			11,602				11,045
Other, net			9,314				3,706
Dividends received			161,106				175,244
Interest received			245,095				270,776
Interest paid			(115,317	)			(150,162	)
Income taxes paid, net of refunds			(250,556	)			(263,569	)
Net cash provided by (used in) operating activities			987,671				775,988
Cash flows from investing activities:
Payments for additions to property, plant and equipment			(415,563	)			(420,768	)
Payments for additions to and internally developed intangible assets			(156,927	)			(187,039	)
Proceeds from sales of property, plant and equipment and intangible assets			15,042				20,765
Payments for acquisitions of investments accounted for using the equity method			(2,450	)			(2,401	)
Payments for acquisitions of other financial assets			(280,236	)			(506,431	)
Proceeds from sales and redemptions of other financial assets			224,302				515,670
Other, net			719				2,649
Net cash provided by (used in) investing activities			(615,113	)			(577,555	)
Cash flows from financing activities:
Proceeds from short-term financing liabilities			8,106,505				8,435,249
Repayments of short-term financing liabilities			(8,004,620	)			(8,213,698	)
Proceeds from long-term financing liabilities			1,689,596				1,900,257
Repayments of long-term financing liabilities			(1,609,554	)			(1,726,097	)
Dividends paid to owners of the parent			(174,221	)			(194,271	)
Dividends paid to non-controlling interests			(48,332	)			(66,872	)
Purchases and sales of treasury stock, net			(87,082	)			(64,556	)
Other, net			(46,626	)			(47,088	)
Net cash provided by (used in) financing activities			(174,334	)			22,924
Effect of exchange rate changes on cash and cash equivalents			(47,712	)			16,276
Net change in cash and cash equivalents			150,512				237,633
Cash and cash equivalents at beginning of year			2,105,976				2,256,488
Cash and cash equivalents at end of year			2,256,488				2,494,121

 

- 11 -

[5] Assumptions for Going Concern

None

 

- 12 -

[6] Notes to Consolidated Financial Statements

[A] Changes in accounting policies

(a) IFRS 9 “Financial Instruments”

Honda was an early adopter of IFRS 9 “Financial Instruments” issued in November 2009, amended in October 2010 and November 2013 (“IFRS 9 (2013)”) prior to the year ended March 31, 2018 and has adopted IFRS 9 issued in July 2014 (“IFRS 9 (2014)”) with a date of initial application of April 1, 2018. The adoption of IFRS 9 (2014) resulted in changes in accounting policies primarily for classification and impairment of financial assets. IFRS 9 (2014) has an exemption allowing comparative information for prior periods not to be restated with respect to classification and measurement (including impairment) changes. Therefore, the comparative information has not been restated and continues to be reported under IFRS 9 (2013). Instead, the cumulative effect of adopting IFRS 9 (2014) was recognized in the opening balance of equity as of the date of initial application on April 1, 2018. The following are primary changes and corresponding impacts of adopting IFRS 9 (2014).

Classification of financial assets

Debt securities other than those classified into financial assets measured at amortized cost were classified into financial assets measured at fair value through profit or loss under IFRS 9 (2013). IFRS 9 (2014) newly established a classification in which financial assets are measured at fair value through other comprehensive income. Under IFRS 9 (2014), a financial asset shall be measured at fair value through other comprehensive income if both of the following conditions are met: 1) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and 2) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Honda has evaluated the business models within which financial assets are held and contractual terms of financial assets. As a result, Honda has reclassified debt securities such as government bonds and municipal bonds held by certain subsidiaries from the financial assets measured at fair value through profit or loss to financial assets measured at fair value through other comprehensive income as of April 1, 2018.

The impact of this reclassification is as follows:

 

		Yen (millions)
		Carrying amounts as of March 31, 2018 under IFRS 9 (2013)				Reclassification				Carrying amounts as of April 1, 2018 under IFRS 9 (2014)
Other financial assets:
Financial assets measured at fair value through profit or loss:
Debt securities			69,829				(14,376	)			55,453
Financial assets measured at fair value through other comprehensive income:
Debt securities			—				14,376				14,376

 

- 13 -

Impairment of financial assets

IFRS 9 (2014) replaced the incurred loss model under IAS 39 with the expected credit loss (ECL) model. The ECL model requires the allowance for credit losses to be measured at amounts equal to either lifetime ECL for those financial assets which have experienced a significant increase in credit risk (SICR) since initial recognition or 12-month ECL for financial assets which have not experienced a SICR. Lifetime ECL represents ECL that results from all possible default events over the expected life of a financial asset. 12-month ECL is the portion of lifetime ECL that results from default events that are possible within 12 months after the reporting date. ECL is a probability-weighted estimate of the difference between the contractual cash flows and the cash flows that the entity expects to receive, discounted at the original effective interest rates.

When determining whether credit risk has increased significantly, Honda assesses financial assets either individually based primarily on delinquencies or collectively for groups of financial assets with shared risk characteristics such as the period of initial recognition, collateral type, original term and credit score considering relative changes in expected default rates since initial recognition.

The application of the ECL model resulted in an increase in the allowance for credit losses of JPY 4,599 million as of April 1, 2018, which is on receivables from financial services.

(b) IFRS 15 “Revenue from Contracts with Customers”

Honda has adopted IFRS 15 ”Revenue from Contracts with Customers” with a date of initial application of April 1, 2018 by recognizing the cumulative effect of initially applying this standard as an adjustment to the opening balance of equity at the date of initial application. Therefore, the comparative information has not been restated and continues to be reported under the previous accounting policy.

Honda’s contracts with customers include promises to transfer goods or services without charges such as free inspections. Such promised goods or services are generally considered performance obligations and related sales revenue is deferred under IFRS15, if it is deemed material, while such sales revenue was recognized at contract inception under the previous accounting policy.

Further, under IFRS 15, dealer incentives are considered variable consideration when determining the transaction price and sales revenue is recognized only to the extent that it is highly probable that a significant reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved, which results in higher deductions from sales revenue recognized when products are sold to dealers.

The impacts of adopting IFRS 15 on Honda’s consolidated financial statements as of and for the year ended and the three months ended March 31, 2019 are as follows:

 

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(Consolidated Statements of Financial Position)

As of March 31, 2019

 

		Yen (millions)
		Balances without adoption of IFRS 15				Adjustments				As reported
Assets
Current assets:
Cash and cash equivalents			2,494,121				—				2,494,121
Trade receivables			796,199				(2,954	)			793,245
Receivables from financial services			1,951,633				—				1,951,633
Other financial assets			163,274				—				163,274
Inventories			1,586,787				—				1,586,787
Other current assets			357,428				806				358,234
Total current assets			7,349,442				(2,148	)			7,347,294
Non-current assets:
Investments accounted for using the equity method			713,026				13				713,039
Receivables from financial services			3,453,617				—				3,453,617
Other financial assets			417,149				—				417,149
Equipment on operating leases			4,448,849				—				4,448,849
Property, plant and equipment			2,981,840				—				2,981,840
Intangible assets			744,368				—				744,368
Deferred tax assets			149,800				518				150,318
Other non-current assets			161,842				806				162,648
Total non-current assets			13,070,491				1,337				13,071,828
Total assets			20,419,933				(811	)			20,419,122
		Yen (millions)
		Balances without adoption of IFRS 15				Adjustments				As reported
Liabilities and Equity
Current liabilities:
Trade payables			1,184,882				—				1,184,882
Financing liabilities			3,188,782				—				3,188,782
Accrued expenses			423,908				52,392				476,300
Other financial liabilities			132,910				—				132,910
Income taxes payable			49,726				—				49,726
Provisions			352,642				(3,879	)			348,763
Other current liabilities			584,294				15,467				599,761
Total current liabilities			5,917,144				63,980				5,981,124
Non-current liabilities:
Financing liabilities			4,142,338				—				4,142,338
Other financial liabilities			63,689				—				63,689
Retirement benefit liabilities			398,803				—				398,803
Provisions			221,694				(949	)			220,745
Deferred tax liabilities			742,937				(15,526	)			727,411
Other non-current liabilities			318,334				888				319,222
Total non-current liabilities			5,887,795				(15,587	)			5,872,208
Total liabilities			11,804,939				48,393				11,853,332
Equity:
Common stock			86,067				—				86,067
Capital surplus			171,460				—				171,460
Treasury stock			(177,827	)			—				(177,827	)
Retained earnings			8,021,584				(47,947	)			7,973,637
Other components of equity			215,285				(902	)			214,383
Equity attributable to owners of the parent			8,316,569				(48,849	)			8,267,720
Non-controlling interests			298,425				(355	)			298,070
Total equity			8,614,994				(49,204	)			8,565,790
Total liabilities and equity			20,419,933				(811	)			20,419,122

 

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