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 NOVEMBER 2020

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 November 6, 2020, Honda Motor Co., Ltd. (the “Company”) announced its consolidated financial results for the fiscal second quarter and fiscal half year ended September 30, 2020.

Exhibit 2:

Honda Motor Co., Ltd. (the “Company”) revises its forecast for consolidated financial results for the fiscal year ending March 31, 2021, which was announced on August 5, 2020.

Exhibit 3:

The Board of Directors of Honda Motor Co., Ltd. (the “Company”), at its meeting held on November 6, 2020, resolved to make a distribution of surplus (quarterly dividends), the record date of which is September 30, 2020, and revised the amount of the projected dividend per share of common stock for the year ending March 31, 2021.

Exhibit 4:

Honda Motor Co., Ltd (“the Company”) hereby announces that the Executive Council has resolved the transfer of specified subsidiaries at its meeting on October 28, 2020.

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: November 9, 2020

November 6, 2020

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL SECOND QUARTER AND

THE FISCAL FIRST HALF YEAR ENDED SEPTEMBER 30, 2020

Tokyo, November 6, 2020 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal second quarter and the fiscal first half year ended September 30, 2020.

First Half Year Results

The global economy, which had slowed down due to the spread of coronavirus disease 2019 (COVID-19), has been on a recovery track for the three months ended September 30, 2020. However, it has still affected Honda’s consolidated financial results for the six months ended September 30, 2020.

Resulting from travel restriction measures by government, Honda’s production bases in Japan and overseas were also affected by suspended or reduced production mainly due to restrictions on employees’ commute to the workplaces and delays in the supply of parts within the supply chain. Some dealers in Japan and overseas were obliged to suspend business, shorten business hours, or reduce services such as inspections and repairs. As of the date of this report, Honda has been gradually resuming its business activities and the impact of the above has been decreasing.

Honda’s consolidated sales revenue for the six months ended September 30, 2020 decreased by 25.2%, to JPY 5,775.1 billion from the same period last year, due mainly to decreased sales revenue in all business operations. Operating profit decreased by 64.2%, to JPY 169.2 billion from the same period last year, due mainly to a decrease in profit attributable to decreased sales revenue and model mix, which was partially offset by decreased selling, general and administrative expenses. Profit before income taxes decreased by 53.0%, to JPY 272.2 billion from the same period last year. Profit for the period attributable to owners of the parent decreased by 56.6%, to JPY 160.0 billion from the same period last year.

Earnings per share attributable to owners of the parent for the period amounted to JPY 92.7, a decrease of JPY 116.93 from the corresponding period last year. One Honda American Depository Share represents one common share.

Second Quarter Results

Consolidated sales revenue for the three months ended September 30, 2020 decreased by 2.1%, to JPY 3,651.3 billion from the same period last year, due mainly to decreased sales revenue in Automobile business as well as negative foreign currency translation effects, which was partially offset by increased sales revenue in Financial services business operations. Operating profit increased by 28.5%, to JPY 282.9 billion from the same period last year, due mainly to decreased selling, general and administrative expenses, which was partially offset by a decrease in profit attributable to decreased sales revenue and model mix. Profit before income taxes increased by 19.4%, to JPY 345.7 billion from the same period last year. Profit for the period attributable to owners of the parent increased by 22.6%, to JPY 240.9 billion from the same period last year.

Earnings per share attributable to owners of the parent for the period amounted to JPY 139.53, an increase of JPY 27.83 from the corresponding period last year.

 

—1—

Consolidated Statements of Financial Position for the Fiscal First Half Year Ended September 30, 2020

Total assets increased by JPY 35.7 billion, to JPY 20,497.1 billion from March 31, 2020 due mainly to increased cash and cash equivalents, which was partially offset by decreased foreign currency translation effects. Total liabilities increased by JPY 27.7 billion, to JPY 12,203.2 billion from March 31, 2020 due mainly to increased financing liabilities, which was partially offset by decreased foreign currency translation effects. Total equity increased by JPY 7.9 billion, to JPY 8,293.9 billion from March 31, 2020 due mainly to increased retained earnings attributable to profit for the period, which was partially offset by decreased foreign currency translation effects.

Consolidated Statements of Cash Flows for the Fiscal First Half Year Ended September 30, 2020

Consolidated cash and cash equivalents on September 30, 2020 increased by JPY 292.9 billion from March 31, 2020, to JPY 2,965.3 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the same period last year, are as follows:

Net cash provided by operating activities amounted to JPY 501.8 billion of cash inflows. Cash inflows from operating activities increased by JPY 91.9 billion from the same period last year, due mainly to decreased payments for parts and raw materials, which was partially offset by decreased cash received from customers.

Net cash used in investing activities amounted to JPY 303.2 billion of cash outflows. Cash outflows from investing activities decreased by JPY 72.3 billion from the same period last year, due mainly to a decrease in payments for acquisitions of other financial assets as well as for additions to property, plant and equipment.

Net cash provided by financing activities amounted to JPY 124.1 billion of cash inflows. Cash inflows from financing activities increased by JPY 258.3 billion from the same period last year, due mainly to increased proceeds from financing liabilities.

 

—2—

Forecasts for the Fiscal Year Ending March 31, 2021

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2021, Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2021

 

		Yen (billions)				Changes from FY 2020
Sales revenue			13,050.0				- 12.6	%
Operating profit			420.0				- 33.7	%
Profit before income taxes			660.0				- 16.4	%
Profit for the year			425.0				- 16.7	%
Profit for the year attributable to owners of the parent			390.0				- 14.4	%
		Yen
Earnings per share attributable to owners of the parent
Basic and diluted			225.87

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 106 for the full year ending March 31, 2021.

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, 2021 from the previous year are as follows.

 

		Yen (billions)
Revenue, model mix, etc.			- 400.6
Cost reduction, the effect of raw material cost fluctuations, etc.			+ 77.0
SG&A expenses			+ 181.0
R&D expenses			- 3.0
Currency effect			- 68.0
Operating profit compared with fiscal year ended March 31, 2020			- 213.6
Share of profit of investments accounted for using the equity method			+ 60.7
Finance income and finance costs			+ 22.9
Profit before income taxes compared with fiscal year ended March 31, 2020			- 129.9

Dividend per Share of Common Stock

Fiscal second quarter dividend is JPY 19 per share of common stock. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2021, is JPY 68 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—

[1] Condensed Consolidated Statements of Financial Position

March 31, 2020 and September 30, 2020

 

		Yen (millions)
		Mar. 31, 2020				Sep. 30, 2020
Assets
Current assets:
Cash and cash equivalents			2,672,353				2,965,334
Trade receivables			633,909				687,819
Receivables from financial services			1,878,358				1,657,479
Other financial assets			190,053				84,851
Inventories			1,560,568				1,509,539
Other current assets			365,769				314,314
Total current assets			7,301,010				7,219,336
Non-current assets:
Investments accounted for using the equity method			655,475				742,411
Receivables from financial services			3,282,807				3,335,679
Other financial assets			441,724				552,548
Equipment on operating leases			4,626,063				4,617,641
Property, plant and equipment			3,051,704				2,941,425
Intangible assets			760,434				790,660
Deferred tax assets			132,553				80,184
Other non-current assets			209,695				217,289
Total non-current assets			13,160,455				13,277,837
Total assets			20,461,465				20,497,173
Liabilities and Equity
Current liabilities:
Trade payables			958,469				981,681
Financing liabilities			3,248,457				3,117,968
Accrued expenses			449,716				390,999
Other financial liabilities			209,065				198,113
Income taxes payable			43,759				42,642
Provisions			287,175				280,822
Other current liabilities			593,447				558,345
Total current liabilities			5,790,088				5,570,570
Non-current liabilities:
Financing liabilities			4,221,229				4,521,631
Other financial liabilities			303,570				286,409
Retirement benefit liabilities			578,909				600,544
Provisions			238,439				209,625
Deferred tax liabilities			698,868				670,193
Other non-current liabilities			344,339				344,232
Total non-current liabilities			6,385,354				6,632,634
Total liabilities			12,175,442				12,203,204
Equity:
Common stock			86,067				86,067
Capital surplus			171,823				171,918
Treasury stock			(273,940	)			(273,818	)
Retained earnings			8,142,948				8,235,636
Other components of equity			(114,639	)			(177,354	)
Equity attributable to owners of the parent			8,012,259				8,042,449
Non-controlling interests			273,764				251,520
Total equity			8,286,023				8,293,969
Total liabilities and equity			20,461,465				20,497,173

 

—4—

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

Condensed Consolidated Statements of Income

For the six months ended September 30, 2019 and 2020

 

		Yen (millions)
		Six months ended Sep. 30, 2019				Six months ended Sep. 30, 2020
Sales revenue			7,725,356				5,775,144
Operating costs and expenses:
Cost of sales			(6,123,574	)			(4,653,557	)
Selling, general and administrative			(783,943	)			(623,192	)
Research and development			(345,234	)			(329,130	)
Total operating costs and expenses			(7,252,751	)			(5,605,879	)
Operating profit			472,605				169,265
Share of profit of investments accounted for using the equity method			108,179				102,296
Finance income and finance costs:
Interest income			26,260				8,877
Interest expense			(7,595	)			(6,549	)
Other, net			(20,014	)			(1,605	)
Total finance income and finance costs			(1,349	)			723
Profit before income taxes			579,435				272,284
Income tax expense			(179,670	)			(99,715	)
Profit for the period			399,765				172,569
Profit for the period attributable to:
Owners of the parent			368,856				160,051
Non-controlling interests			30,909				12,518
		Yen
Earnings per share attributable to owners of the parent
Basic and diluted			209.63				92.70

 

—5—

Condensed Consolidated Statements of Comprehensive Income

For the six months ended September 30, 2019 and 2020

 

		Yen (millions)
		Six months ended Sep. 30, 2019				Six months ended Sep. 30, 2020
Profit for the period			399,765				172,569
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans			—				—
Net changes in revaluation of financial assets measured at fair value through other comprehensive income			(4,693	)			18,246
Share of other comprehensive income of investments accounted for using the equity method			(604	)			(427	)
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			164				114
Exchange differences on translating foreign operations			(167,710	)			(77,590	)
Share of other comprehensive income of investments accounted for using the equity method			(31,571	)			475
Total other comprehensive income, net of tax			(204,414	)			(59,182	)
Comprehensive income for the period			195,351				113,387
Comprehensive income for the period attributable to:
Owners of the parent			173,092				97,336
Non-controlling interests			22,259				16,051

 

—6—

Condensed Consolidated Statements of Income

For the three months ended September 30, 2019 and 2020

 

		Yen (millions)
		Three months ended Sep. 30, 2019				Three months ended Sep. 30, 2020
Sales revenue			3,729,103				3,651,369
Operating costs and expenses:
Cost of sales			(2,957,091	)			(2,884,258	)
Selling, general and administrative			(376,494	)			(317,939	)
Research and development			(175,382	)			(166,216	)
Total operating costs and expenses			(3,508,967	)			(3,368,413	)
Operating profit			220,136				282,956
Share of profit of investments accounted for using the equity method			63,949				62,302
Finance income and finance costs:
Interest income			12,065				4,282
Interest expense			(4,000	)			(4,716	)
Other, net			(2,526	)			893
Total finance income and finance costs			5,539				459
Profit before income taxes			289,624				345,717
Income tax expense			(79,451	)			(93,169	)
Profit for the period			210,173				252,548
Profit for the period attributable to:
Owners of the parent			196,554				240,922
Non-controlling interests			13,619				11,626
		Yen
Earnings per share attributable to owners of the parent
Basic and diluted			111.70				139.53

 

—7—

Condensed Consolidated Statements of Comprehensive Income

For the three months ended September 30, 2019 and 2020

 

		Yen (millions)
		Three months ended Sep. 30, 2019				Three months ended Sep. 30, 2020
Profit for the period			210,173				252,548
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans			—				—
Net changes in revaluation of financial assets measured at fair value through other comprehensive income			1,655				14,037
Share of other comprehensive income of investments accounted for using the equity method			221				(956	)
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			54				58
Exchange differences on translating foreign operations			(38,492	)			(86,409	)
Share of other comprehensive income of investments accounted for using the equity method			(17,312	)			5,668
Total other comprehensive income, net of tax			(53,874	)			(67,602	)
Comprehensive income for the period			156,299				184,946
Comprehensive income for the period attributable to:
Owners of the parent			144,815				177,103
Non-controlling interests			11,484				7,843

 

—8—

[3] Condensed Consolidated Statements of Changes in Equity

For the six months ended September 30, 2019

 

		Yen (millions)
		Equity attributable to owners of the parent																								Non-controlling interests				Total equity
		Common stock				Capital surplus				Treasury stock				Retained earnings				Other components of equity				Total
Balance as of April 1, 2019			86,067				171,460				(177,827	)			7,973,637				214,383				8,267,720				298,070				8,565,790
Comprehensive income for the period
Profit for the period															368,856								368,856				30,909				399,765
Other comprehensive income, net of tax																			(195,764	)			(195,764	)			(8,650	)			(204,414	)
Total comprehensive income for the period															368,856				(195,764	)			173,092				22,259				195,351
Reclassification to retained earnings															146				(146	)			—								—
Transactions with owners and other
Dividends paid															(98,575	)							(98,575	)			(51,155	)			(149,730	)
Purchases of treasury stock											(4	)											(4	)							(4	)
Disposal of treasury stock											79												79								79
Share-based payment transactions							204																204								204
Total transactions with owners and other							204				75				(98,575	)							(98,296	)			(51,155	)			(149,451	)
Other changes															(1,493	)							(1,493	)							(1,493	)
Balance as of September 30, 2019			86,067				171,664				(177,752	)			8,242,571				18,473				8,341,023				269,174				8,610,197
For the six months ended September 30, 2020
		Yen (millions)
		Equity attributable to owners of the parent																								Non-controlling interests				Total equity
		Common stock				Capital surplus				Treasury stock				Retained earnings				Other components of equity				Total
Balance as of April 1, 2020			86,067				171,823				(273,940	)			8,142,948				(114,639	)			8,012,259				273,764				8,286,023
Comprehensive income for the period
Profit for the period															160,051								160,051				12,518				172,569
Other comprehensive income, net of tax																			(62,715	)			(62,715	)			3,533				(59,182	)
Total comprehensive income for the period															160,051				(62,715	)			97,336				16,051				113,387
Transactions with owners and other
Dividends paid															(67,363	)							(67,363	)			(40,546	)			(107,909	)
Purchases of treasury stock											(2	)											(2	)							(2	)
Disposal of treasury stock											124												124								124
Share-based payment transactions							95																95								95
Equity transactions and others																											2,251				2,251
Total transactions with owners and other							95				122				(67,363	)							(67,146	)			(38,295	)			(105,441	)
Balance as of September 30, 2020			86,067				171,918				(273,818	)			8,235,636				(177,354	)			8,042,449				251,520				8,293,969

 

—9—

[4] Condensed Consolidated Statements of Cash Flows

For the six months ended September 30, 2019 and 2020

 

		Yen (millions)
		Six months ended Sep. 30, 2019				Six months ended Sep. 30, 2020
Cash flows from operating activities:
Profit before income taxes			579,435				272,284
Depreciation, amortization and impairment losses excluding equipment on operating leases			327,903				294,284
Share of profit of investments accounted for using the equity method			(108,179	)			(102,296	)
Finance income and finance costs, net			(37,602	)			34,301
Interest income and interest costs from financial services, net			(64,586	)			(63,235	)
Changes in assets and liabilities
Trade receivables			72,277				(47,843	)
Inventories			(102,759	)			32,367
Trade payables			(78,278	)			63,257
Accrued expenses			(58,310	)			(58,255	)
Provisions and retirement benefit liabilities			(26,074	)			5,204
Receivables from financial services			47,293				83,385
Equipment on operating leases			(173,982	)			(65,320	)
Other assets and liabilities			(12,447	)			(72,394	)
Other, net			(550	)			164
Dividends received			85,621				115,444
Interest received			145,241				118,369
Interest paid			(78,768	)			(60,381	)
Income taxes paid, net of refunds			(106,284	)			(47,446	)
Net cash provided by operating activities			409,951				501,889
Cash flows from investing activities:
Payments for additions to property, plant and equipment			(153,354	)			(141,869	)
Payments for additions to and internally developed intangible assets			(111,292	)			(111,093	)
Proceeds from sales of property, plant and equipment and intangible assets			8,668				4,739
Payments for acquisitions of subsidiaries, net of cash and cash equivalents acquired			(3,047	)			2,230
Payments for acquisitions of investments accounted for using the equity method			(2,401	)			(2,450	)
Payments for acquisitions of other financial assets			(197,620	)			(135,492	)
Proceeds from sales and redemptions of other financial assets			84,874				80,690
Other, net			(1,404	)			—
Net cash used in investing activities			(375,576	)			(303,245	)
Cash flows from financing activities:
Proceeds from short-term financing liabilities			4,123,201				4,809,435
Repayments of short-term financing liabilities			(4,268,863	)			(4,764,780	)
Proceeds from long-term financing liabilities			967,835				1,111,588
Repayments of long-term financing liabilities			(785,267	)			(907,621	)
Dividends paid to owners of the parent			(98,575	)			(67,363	)
Dividends paid to non-controlling interests			(36,377	)			(26,610	)
Purchases and sales of treasury stock, net			75				122
Repayments of lease liabilities			(36,255	)			(30,083	)
Other, net			—				(553	)
Net cash provided by (used in) financing activities			(134,226	)			124,135
Effect of exchange rate changes on cash and cash equivalents			(59,303	)			(29,798	)
Net change in cash and cash equivalents			(159,154	)			292,981
Cash and cash equivalents at beginning of year			2,494,121				2,672,353
Cash and cash equivalents at end of period			2,334,967				2,965,334

 

—10—

[5] Assumptions for Going Concern

None

[6] Notes to Consolidated Financial Statements

[A] Segment Information

Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Life creation and other businesses, which are based on Honda’s organizational structure and characteristics of products and services. Operating segments are defined as the components of Honda for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The accounting policies used for these reportable segments are consistent with the accounting policies used in the Company’s condensed consolidated interim financial statements.

Principal products and services, and functions of each segment are as follows:

 

Segment		Principal products and services		Functions
Motorcycle Business		Motorcycles, all-terrain vehicles (ATVs), side-by-sides (SxS) and relevant parts		Research and development Manufacturing Sales and related services
Automobile Business		Automobiles and relevant parts		Research and development Manufacturing Sales and related services
Financial Services Business		Financial services		Retail loan and lease related to Honda products Others
Life Creation and Other Businesses		Power products and relevant parts, and others		Research and development Manufacturing Sales and related services Others

Segment information based on products and services

As of and for the six months ended September 30, 2019

 

		Yen (millions)
		Motorcycle Business				Automobile Business				Financial Services Business				Life Creation and Other Businesses				Segment Total				Reconciling Items				Consolidated
Sales revenue:
External customers			1,055,543				5,167,970				1,345,634				156,209				7,725,356				—				7,725,356
Intersegment			—				113,050				7,156				10,846				131,052				(131,052	)			—
Total			1,055,543				5,281,020				1,352,790				167,055				7,856,408				(131,052	)			7,725,356
Segment profit (loss)			147,655				195,293				132,162				(2,505	)			472,605				—				472,605
Segment assets			1,473,282				7,903,911				10,131,384				336,266				19,844,843				476,146				20,320,989
Depreciation and amortization			32,563				283,570				406,833				7,146				730,112				—				730,112
Capital expenditures			30,698				207,122				1,193,874				7,190				1,438,884				—				1,438,884
As of and for the six months ended September 30, 2020
		Yen (millions)
		Motorcycle Business				Automobile Business				Financial Services Business				Life Creation and Other Businesses				Segment Total				Reconciling Items				Consolidated
Sales revenue:
External customers			767,316				3,622,538				1,239,092				146,198				5,775,144				—				5,775,144
Intersegment			—				100,284				6,423				8,836				115,543				(115,543	)			—
Total			767,316				3,722,822				1,245,515				155,034				5,890,687				(115,543	)			5,775,144
Segment profit (loss)			79,664				(70,503	)			164,866				(4,762	)			169,265				—				169,265
Segment assets			1,424,352				7,706,715				10,234,914				348,192				19,714,173				783,000				20,497,173
Depreciation and amortization			34,360				249,667				412,027				7,599				703,653				—				703,653
Capital expenditures			18,925				210,914				965,857				4,501				1,200,197				—				1,200,197

 

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