No.1-7628

 

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF AUGUST 2022

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:

Honda Motor Co., Ltd. filed its consolidated interim financial statements for the fiscal first quarter ended June 30, 2022 with Financial Services Agency in Japan.

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: August 26, 2022

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Financial Statements

June 30, 2022

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Consolidated Financial Results

Overview of Operating Performance

Honda’s consolidated sales revenue for the three months ended June 30, 2022 increased by 6.9%, to ¥3,829.5 billion from the same period last year, due mainly to increased sales revenue in Motorcycle business as well as positive foreign currency translation effects, which was partially offset by decreased sales revenue in Automobile business. Operating profit decreased by 8.6%, to ¥222.2 billion from the same period last year, due mainly to a decrease in profit attributable to sales impacts, which was partially offset by an increase in profit attributable to price and cost impacts as well as positive foreign currency effects. Profit before income taxes decreased by 23.8%, to ¥237.4 billion from the same period last year. Profit for the period attributable to owners of the parent decreased by 32.9%, to ¥149.2 billion from the same period last year.

Business Segments

Motorcycle Business

For the three months ended June 30, 2021 and 2022

 

		Units (thousands)
		Honda Group Unit Sales*																Consolidated Unit Sales*
		Three months ended Jun. 30, 2021				Three months ended Jun. 30, 2022												Three months ended Jun. 30, 2021				Three months ended Jun. 30, 2022
										Change				%												Change				%
Motorcycle Business			3,879				4,251				372				9.6				2,392				2,972				580				24.2
Japan			59				56				(3	)			(5.1	)			59				56				(3	)			(5.1	)
North America			101				110				9				8.9				101				110				9				8.9
Europe			108				81				(27	)			(25.0	)			108				81				(27	)			(25.0	)
Asia			3,245				3,585				340				10.5				1,758				2,306				548				31.2
Other Regions			366				419				53				14.5				366				419				53				14.5

 

*

Honda Group Unit Sales is the total unit sales of completed motorcycle, ATV and side-by-side products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.

Sales revenue from external customers increased by 30.5%, to ¥676.0 billion from the same period last year, due mainly to increased consolidated unit sales as well as positive foreign currency translation effects. Operating profit increased by 21.2%, to ¥97.8 billion from the same period last year, due mainly to an increase in profit attributable to price and cost impacts as well as positive foreign currency effects.

Automobile Business

For the three months ended June 30, 2021 and 2022

 

		Units (thousands)
		Honda Group Unit Sales*																Consolidated Unit Sales*
		Three months ended Jun. 30, 2021				Three months ended Jun. 30, 2022												Three months ended Jun. 30, 2021				Three months ended Jun. 30, 2022
										Change				%												Change				%
Automobile Business			998				815				(183	)			(18.3	)			608				529				(79	)			(13.0	)
Japan			133				108				(25	)			(18.8	)			118				96				(22	)			(18.6	)
North America			346				267				(79	)			(22.8	)			346				267				(79	)			(22.8	)
Europe			28				23				(5	)			(17.9	)			28				23				(5	)			(17.9	)
Asia			462				387				(75	)			(16.2	)			87				113				26				29.9
Other Regions			29				30				1				3.4				29				30				1				3.4

 

*

Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated sales revenue 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 and others by our Japanese finance subsidiaries and provided through our consolidated subsidiaries are accounted for as operating leases in conformity with IFRS and are not included in consolidated sales revenue to the external customers in our Automobile business. Accordingly, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our Automobile business.

Sales revenue from external customers increased by 3.9%, to ¥2,291.4 billion from the same period last year, due mainly to positive foreign currency translation effects, which was partially offset by decreased consolidated unit sales. Operating profit decreased by 45.9%, to ¥38.2 billion from the same period last year, due mainly to a decrease in profit attributable to sales impacts, which was partially offset by positive foreign currency effects.

Financial Services Business

Sales revenue from external customers decreased by 2.2%, to ¥749.3 billion from the same period last year, due mainly to decreased revenues on disposition of lease vehicles, which was partially offset by positive foreign currency translation effects. Operating profit decreased by 14.5%, to ¥78.8 billion from the same period last year, due mainly to a decrease in profit attributable to decreased sales revenue, which was partially offset by positive foreign currency effects.

Power Product and Other Businesses

For the three months ended June 30, 2021 and 2022

 

		Units (thousands)
		Honda Group Unit Sales / Consolidated Unit Sales*
		Three months ended Jun. 30, 2021				Three months ended Jun. 30, 2022
										Change				%
Power Product Business			1,708				1,546				(162	)			(9.5	)
Japan			87				84				(3	)			(3.4	)
North America			880				684				(196	)			(22.3	)
Europe			279				313				34				12.2
Asia			362				368				6				1.7
Other Regions			100				97				(3	)			(3.0	)

 

*

Honda Group Unit Sales is the total unit sales of completed power products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed power products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed power products of Honda and its consolidated subsidiaries. In Power Product business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales since no affiliate and joint venture accounted for using the equity method were involved in the sale of Honda power products.

Sales revenue from external customers increased by 21.6%, to ¥112.6 billion from the same period last year, due mainly to positive foreign currency translation effects. Operating profit was ¥7.3 billion, an increase of ¥7.7 billion from the same period last year, due mainly to decreased operating costs in Other businesses as well as positive foreign currency effects. In addition, operating loss of aircraft and aircraft engines included in Power product and other businesses was ¥3.8 billion, an improvement of ¥4.5 billion from the same period last year.

Cash Flows

Consolidated cash and cash equivalents on June 30, 2022 decreased by ¥44.8 billion from March 31, 2022, to ¥3,630.1 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 ¥618.1 billion of cash inflows. Cash inflows from operating activities increased by ¥610.8 billion from the same period last year, due mainly to increased cash received from customers, which was partially offset by increased payments for parts and raw materials.

Net cash used in investing activities amounted to ¥278.2 billion of cash outflows. Cash outflows from investing activities increased by ¥149.5 billion from the same period last year, due mainly to decreased proceeds from sales and redemptions of other financial assets.

Net cash used in financing activities amounted to ¥609.3 billion of cash outflows. Cash outflows from financing activities increased by ¥468.4 billion from the same period last year, due mainly to decreased proceeds from financing liabilities and increased dividends paid.

Research and Development

The changes in research and development activities by Honda and its subsidiaries for the three months ended June 30, 2022 are as follows:

The Company has established Business Development Operations that consolidate functions to develop businesses and areas of software and core electrification technologies in order to strengthen new value creation by combining hardware with software and services. Some technology areas have been moved from their respective product-based business operations, such as motorcycle, automobile and power products, and combined under Business Development Operations. With this change, Honda will accelerate the speed at which it can move and enhance the synergy effect by integrating technology and business for multiple product domains.

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Financial Position

March 31, 2022 and June 30, 2022

 

						Yen (millions)
Assets		Note				March 31, 2022				June 30, 2022
						unaudited				unaudited
Current assets:
Cash and cash equivalents						¥	3,674,931			¥	3,630,125
Trade receivables							896,768				856,082
Receivables from financial services							1,694,113				1,819,471
Other financial assets							217,743				375,868
Inventories							1,918,548				2,093,218
Other current assets							439,322				476,453
Total current assets							8,841,425				9,251,217
Non-current assets:
Investments accounted for using the equity method							967,404				1,030,833
Receivables from financial services							3,740,383				3,983,381
Other financial assets							819,654				914,182
Equipment on operating leases			5				5,159,129				5,343,909
Property, plant and equipment			6				3,079,407				3,220,232
Intangible assets							849,507				874,910
Deferred tax assets							91,592				93,415
Other non-current assets							424,652				442,599
Total non-current assets							15,131,728				15,903,461
Total assets						¥	23,973,153			¥	25,154,678
						Yen (millions)
Liabilities and Equity		Note				March 31, 2022				June 30, 2022
						unaudited				unaudited
Current liabilities:
Trade payables						¥	1,236,233			¥	1,173,061
Financing liabilities							3,118,304				3,272,272
Accrued expenses							375,601				329,559
Other financial liabilities							236,900				378,423
Income taxes payable							96,116				149,646
Provisions			7				268,388				287,788
Other current liabilities							672,857				706,889
Total current liabilities							6,004,399				6,297,638
Non-current liabilities:
Financing liabilities							4,984,252				5,017,359
Other financial liabilities							282,083				279,751
Retirement benefit liabilities							282,054				305,125
Provisions			7				253,625				265,918
Deferred tax liabilities							990,754				1,073,367
Other non-current liabilities							403,440				426,890
Total non-current liabilities							7,196,208				7,368,410
Total liabilities							13,200,607				13,666,048
Equity:
Common stock							86,067				86,067
Capital surplus							185,495				185,328
Treasury stock							(328,309	)			(328,048	)
Retained earnings							9,539,133				9,577,035
Other components of equity							990,438				1,682,330
Equity attributable to owners of the parent							10,472,824				11,202,712
Non-controlling interests							299,722				285,918
Total equity							10,772,546				11,488,630
Total liabilities and equity						¥	23,973,153			¥	25,154,678

See accompanying notes to condensed consolidated interim financial statements.

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

For the three months ended June 30, 2021 and 2022

 

				Yen (millions)
		Note		June 30, 2021				June 30, 2022
				unaudited				unaudited
Sales revenue		8		¥	3,583,870			¥	3,829,550
Operating costs and expenses:
Cost of sales					(2,846,420	)			(3,064,170	)
Selling, general and administrative					(317,014	)			(361,573	)
Research and development					(177,226	)			(181,591	)
Total operating costs and expenses					(3,340,660	)			(3,607,334	)
Operating profit					243,210				222,216
Share of profit of investments accounted for using the equity method					55,931				22,609
Finance income and finance costs:
Interest income					5,200				9,132
Interest expense					(2,925	)			(7,427	)
Other, net					9,944				(9,126	)
Total finance income and finance costs					12,219				(7,421	)
Profit before income taxes					311,360				237,404
Income tax expense					(73,640	)			(73,824	)
Profit for the period				¥	237,720			¥	163,580
Profit for the period attributable to:
Owners of the parent					222,512				149,219
Non-controlling interests					15,208				14,361
				Yen
				June 30, 2021				June 30, 2022
Earnings per share attributable to owners of the parent
Basic and diluted		11		¥	128.87			¥	87.23

See accompanying notes to condensed consolidated interim financial statements.

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

For the three months ended June 30, 2021 and 2022

 

				Yen (millions)
		Note		June 30, 2021				June 30, 2022
				unaudited				unaudited
Profit for the period				¥	237,720			¥	163,580
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans					—				(3	)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income					62,582				12,432
Share of other comprehensive income of investments accounted for using the equity method					948				(444	)
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					30				(336	)
Exchange differences on translating foreign operations					29,310				648,946
Share of other comprehensive income of investments accounted for using the equity method					19,308				46,556
Total other comprehensive income, net of tax					112,178				707,151
Comprehensive income for the period				¥	349,898			¥	870,731
Comprehensive income for the period attributable to:
Owners of the parent					336,272				841,050
Non-controlling interests					13,626				29,681

See accompanying notes to condensed consolidated interim financial statements.

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Equity

For the three months ended June 30, 2021 and 2022

 

						Yen (millions)
						Equity attributable to owners of the parent
		Note				Common stock				Capital surplus				Treasury stock				Retained earnings				Other components of equity				Total				Non-controlling interests				Total equity
Balance as of April 1, 2021 (unaudited)						¥	86,067			¥	172,049			¥	(273,786	)		¥	8,901,266			¥	196,710			¥	9,082,306			¥	290,533			¥	9,372,839
Comprehensive income for the period
Profit for the period																			222,512								222,512				15,208				237,720
Other comprehensive income, net of tax																							113,760				113,760				(1,582	)			112,178
Total comprehensive income for the period																			222,512				113,760				336,272				13,626				349,898
Reclassification to retained earnings																			(92	)			92				—								—
Transactions with owners and other
Dividends paid			12																(93,272	)							(93,272	)			(25,338	)			(118,610	)
Purchases of treasury stock															(2	)											(2	)							(2	)
Disposal of treasury stock															392												392								392
Share-based payment transactions											(298	)															(298	)							(298	)
Total transactions with owners and other											(298	)			390				(93,272	)							(93,180	)			(25,338	)			(118,518	)
Balance as of June 30, 2021 (unaudited)						¥	86,067			¥	171,751			¥	(273,396	)		¥	9,030,414			¥	310,562			¥	9,325,398			¥	278,821			¥	9,604,219
						Yen (millions)
						Equity attributable to owners of the parent
		Note				Common stock				Capital surplus				Treasury stock				Retained earnings				Other components of equity				Total				Non-controlling interests				Total equity
Balance as of April 1, 2022 (unaudited)						¥	86,067			¥	185,495			¥	(328,309	)		¥	9,539,133			¥	990,438			¥	10,472,824			¥	299,722			¥	10,772,546
Comprehensive income for the period
Profit for the period																			149,219								149,219				14,361				163,580
Other comprehensive income, net of tax																							691,831				691,831				15,320				707,151
Total comprehensive income for the period																			149,219				691,831				841,050				29,681				870,731
Reclassification to retained earnings																			(61	)			61				—								—
Transactions with owners and other
Dividends paid			12																(111,256	)							(111,256	)			(43,485	)			(154,741	)
Purchases of treasury stock															(2	)											(2	)							(2	)
Disposal of treasury stock															263												263								263
Share-based payment transactions											(167	)															(167	)							(167	)
Total transactions with owners and other											(167	)			261				(111,256	)							(111,162	)			(43,485	)			(154,647	)
Balance as of June 30, 2022 (unaudited)						¥	86,067			¥	185,328			¥	(328,048	)		¥	9,577,035			¥	1,682,330			¥	11,202,712			¥	285,918			¥	11,488,630

See accompanying notes to condensed consolidated interim financial statements.

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

For the three months ended June 30, 2021 and 2022

 

						Yen (millions)
		Note				June 30, 2021				June 30, 2022
						unaudited				unaudited
Cash flows from operating activities:
Profit before income taxes						¥	311,360			¥	237,404
Depreciation, amortization and impairment losses excluding equipment on operating leases							151,291				161,431
Share of profit of investments accounted for using the equity method							(55,931	)			(22,609	)
Finance income and finance costs, net							(2,066	)			(21,458	)
Interest income and interest costs from financial services, net							(38,508	)			(38,856	)
Changes in assets and liabilities
Trade receivables							101,500				83,139
Inventories							(178,826	)			(23,038	)
Trade payables							(67,565	)			(149,024	)
Accrued expenses							(88,578	)			(78,094	)
Provisions and retirement benefit liabilities							(36,215	)			4,744
Receivables from financial services							21,798				172,869
Equipment on operating leases							(92,131	)			263,933
Other assets and liabilities							(26,033	)			17,333
Other, net							(439	)			(7,912	)
Dividends received							21,961				27,711
Interest received							59,109				66,809
Interest paid							(19,586	)			(22,396	)
Income taxes paid, net of refunds							(53,888	)			(53,859	)
Net cash provided by operating activities							7,253				618,127
Cash flows from investing activities:
Payments for additions to property, plant and equipment							(80,310	)			(96,990	)
Payments for additions to and internally developed intangible assets							(41,026	)			(38,701	)
Proceeds from sales of property, plant and equipment and intangible assets							4,749				4,496
Payments for acquisitions of other financial assets							(125,511	)			(176,502	)
Proceeds from sales and redemptions of other financial assets							113,382				29,412
Net cash used in investing activities							(128,716	)			(278,285	)
Cash flows from financing activities:
Proceeds from short-term financing liabilities							2,197,816				2,047,921
Repayments of short-term financing liabilities							(2,157,665	)			(1,969,719	)
Proceeds from long-term financing liabilities							289,144				93,871
Repayments of long-term financing liabilities							(348,005	)			(642,236	)
Dividends paid to owners of the parent							(93,272	)			(111,256	)
Dividends paid to non-controlling interests							(10,879	)			(7,432	)
Purchases and sales of treasury stock, net							390				261
Repayments of lease liabilities							(18,428	)			(20,756	)
Net cash used in financing activities							(140,899	)			(609,346	)
Effect of exchange rate changes on cash and cash equivalents							7,796				224,698
Net change in cash and cash equivalents							(254,566	)			(44,806	)
Cash and cash equivalents at beginning of year							2,758,020				3,674,931
Cash and cash equivalents at end of period						¥	2,503,454			¥	3,630,125

See accompanying notes to condensed consolidated interim financial statements.

 

1

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(1) Reporting Entity

Honda Motor Co., Ltd. (the “Company”) is a public company domiciled in Japan. The Company and its subsidiaries (collectively “Honda”) develop, manufacture and distribute motorcycles, automobiles, power products and others throughout the world, and also provide financial services to customers and dealers for the sale of those products. Principal manufacturing facilities are located in Japan, the United States of America, Canada, Mexico, Italy, France, China, India, Indonesia, Malaysia, Philippines, Thailand, Vietnam, Argentina and Brazil.

(2) Basis of Preparation

   (a) Compliance with Interim Financial Reporting Standards

The condensed consolidated interim financial statements of the Company have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The condensed consolidated interim financial statements should be read in conjunction with the Company’s consolidated financial statements for the fiscal year ended March 31, 2022, since the condensed consolidated interim financial statements do not include all the information required in the annual consolidated financial statements, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.

   (b) Functional Currency and Presentation Currency

The condensed consolidated interim financial statements are presented in Japanese yen, which is the functional currency of the Company. All financial information presented in Japanese yen has been rounded to the nearest million Japanese yen, except when otherwise indicated.

   (c) Use of Estimates and Judgments

The preparation of condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies, the reported amount of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. These estimates and underlying assumptions are reviewed on a continuous basis. Changes in these accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

The condensed consolidated interim financial statements are prepared based on the same judgments and estimations as those applied and described in the Company’s consolidated financial statements for the fiscal year ended March 31, 2022.

(3) Summary of Significant Accounting Policies

The condensed consolidated interim financial statements are prepared based on the same accounting policies as those applied and described in the Company’s consolidated financial statements for the fiscal year ended March 31, 2022.

 

2

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(4) Segment Information

Based on Honda’s organizational structure and characteristics of products and services, Honda discloses segment information in four categories: Reportable segments of Motorcycle business, Automobile business and Financial services business, and other segments that are not reportable. The other segments are combined and disclosed in Power product and other businesses. Segment information is based on the components of Honda for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The accounting policies used for segment information are consistent with the accounting policies used in the Company’s 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
Power Product and Other Businesses		Power products and relevant parts, and others		Research and development Manufacturing Sales and related services Others

Explanatory note:

 

*	Life creation business has been renamed Power product business as a result of organizational changes effective April 1, 2022.

 

   (a) Segment Information

Segment information as of and for the three months ended June 30, 2021 and 2022 is as follows:

As of and for the three months ended June 30, 2021

 

		Yen (millions)
		Motorcycle Business				Automobile Business				Financial Services Business				Power Product and Other Businesses				Segment Total				Reconciling Items				Consolidated
Sales revenue:
External customers		¥	518,203			¥	2,206,436			¥	766,572			¥	92,659			¥	3,583,870			¥	—			¥	3,583,870
Intersegment			—				46,018				926				6,588				53,532				(53,532	)			—
Total			518,203				2,252,454				767,498				99,247				3,637,402				(53,532	)			3,583,870
Segment profit (loss)		¥	80,695			¥	70,689			¥	92,217			¥	(391	)		¥	243,210			¥	—			¥	243,210
Segment assets		¥	1,495,553			¥	8,790,998			¥	10,862,394			¥	382,318			¥	21,531,263			¥	451,573			¥	21,982,836
Depreciation and amortization			17,205				128,726				219,269				4,160				369,360				—				369,360
Capital expenditures			7,765				89,142				685,033				2,584				784,524				—				784,524

 

3

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

As of and for the three months ended June 30, 2022

 

		Yen (millions)
		Motorcycle Business				Automobile Business				Financial Services Business				Power Product and Other Businesses				Segment Total				Reconciling Items				Consolidated
Sales revenue:
External customers		¥	676,050			¥	2,291,485			¥	749,384			¥	112,631			¥	3,829,550			¥	—			¥	3,829,550
Intersegment			—				36,686				679				6,406				43,771				(43,771	)			—
Total			676,050				2,328,171				750,063				119,037				3,873,321				(43,771	)			3,829,550
Segment profit (loss)		¥	97,829			¥	38,262			¥	78,801			¥	7,324			¥	222,216			¥	—			¥	222,216
Segment assets		¥	1,574,093			¥	10,096,425			¥	11,942,441			¥	487,319			¥	24,100,278			¥	1,054,400			¥	25,154,678
Depreciation and amortization			16,596				138,316				232,464				4,836				392,212				—				392,212
Capital expenditures			8,568				139,807				328,625				3,130				480,130				—				480,130

 

Explanatory notes:

 

1.

Segment profit (loss) of each segment is measured in a consistent manner with consolidated operating profit, which is profit before income taxes before share of profit of investments accounted for using the equity method and finance income and finance costs. Expenses not directly associated with specific segments are allocated based on the most reasonable measures applicable.

 

2.

Segment assets of each segment are defined as total assets including investments accounted for using the equity method, derivatives, and deferred tax assets. Segment assets are based on those directly associated with each segment and those not directly associated with specific segments are allocated based on the most reasonable measures applicable except for the corporate assets described below.

 

3.	Intersegment sales revenues are generally made at values that approximate arm’s-length prices.

 

4.

Reconciling items include elimination of intersegment transactions and balances as well as unallocated corporate assets. Unallocated corporate assets, included in reconciling items as of June 30, 2021 and 2022 amounted to ¥608,628 million and ¥1,194,255 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

 

4

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

   (b) Supplemental Geographical Information

In addition to the disclosure required by IFRS, Honda provides the following supplemental information for the financial statements users:

Supplemental geographical information based on the location of the Company and its subsidiaries

As of and for the three months ended June 30, 2021

 

		Yen (millions)
		Japan				North America				Europe				Asia				Other Regions				Total				Reconciling Items				Consolidated
Sales revenue:
External customers		¥	563,459			¥	1,985,752			¥	170,243			¥	729,495			¥	134,921			¥	3,583,870			¥	—			¥	3,583,870
Inter-geographic areas			512,392				121,977				54,005				147,788				1,869				838,031				(838,031	)			—
Total			1,075,851				2,107,729				224,248				877,283				136,790				4,421,901				(838,031	)			3,583,870
Operating profit (loss)		¥	1,729			¥	153,368			¥	9,999			¥	81,435			¥	2,614			¥	249,145			¥	(5,935	)		¥	243,210
Assets		¥	5,239,404			¥	12,268,704			¥	629,568			¥	3,370,027			¥	535,839			¥	22,043,542			¥	(60,706	)		¥	21,982,836
Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets		¥	3,028,127			¥	5,132,967			¥	59,113			¥	653,655			¥	134,394			¥	9,008,256			¥	—			¥	9,008,256
As of and for the three months ended June 30, 2022
		Yen (millions)
		Japan				North America				Europe				Asia				Other Regions				Total				Reconciling Items				Consolidated
Sales revenue:
External customers		¥	535,030			¥	2,032,653			¥	160,736			¥	901,008			¥	200,123			¥	3,829,550			¥	—			¥	3,829,550
Inter-geographic areas			481,226				111,891				6,840				167,796				466				768,219				(768,219	)			—
Total			1,016,256				2,144,544				167,576				1,068,804				200,589				4,597,769				(768,219	)			3,829,550
Operating profit (loss)		¥	24,744			¥	91,018			¥	3,416			¥	86,474			¥	13,774			¥	219,426			¥	2,790			¥	222,216
Assets		¥	5,347,914			¥	14,047,723			¥	587,489			¥	4,026,023			¥	648,627			¥	24,657,776			¥	496,902			¥	25,154,678
Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets		¥	2,981,149			¥	5,724,001			¥	49,368			¥	735,240			¥	177,733			¥	9,667,491			¥	—			¥	9,667,491

 

Explanatory notes:

 

1.	Major countries in each geographic area:

 

North America		United States, Canada, Mexico
Europe		United Kingdom, Germany, Belgium, Italy, France
Asia		Thailand, China, India, Vietnam, Malaysia
Other Regions		Brazil, Australia

 

2.	Operating profit (loss) of each geographical region is measured in a consistent manner with consolidated operating profit, which is profit before income taxes before share of profit of investments accounted for using the equity method and finance income and finance costs.

 

3.	Assets of each geographical region are defined as total assets including investments accounted for using the equity method, derivatives, and deferred tax assets.

 

4.	Sales revenues between geographic areas are generally made at values that approximate arm’s-length prices.

 

5.

Reconciling items include elimination of inter-geographic transactions and balances as well as unallocated corporate assets. Unallocated corporate assets, included in reconciling items as of June 30, 2021 and 2022 amounted to ¥608,628 million and ¥1,194,255 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

 

5

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(5) Equipment on Operating Leases

The additions to equipment on operating leases for the three months ended June 30, 2021 and 2022 are ¥684,336 million and ¥328,055 million, respectively.

The sales or disposals of equipment on operating leases for the three months ended June 30, 2021 and 2022 are ¥373,036 million and ¥360,762 million, respectively.

(6) Property, Plant and Equipment

The additions to property, plant and equipment for the three months ended June 30, 2021 and 2022 are ¥76,723 million and ¥113,526 million, respectively.

The sales or disposals of property, plant and equipment for the three months ended June 30, 2021 and 2022 are ¥10,269 million and ¥7,637 million, respectively.

(7) Provisions

The components of and changes in provisions for the three months ended June 30, 2022 are as follows:

 

		Yen (millions)
		Product warranties*				Other				Total
Balance as of April 1, 2022		¥	419,201			¥	102,812			¥	522,013
Provision		¥	46,698			¥	3,472			¥	50,170
Write-offs			(36,309	)			(12,361	)			(48,670	)
Reversal			(2,222	)			(6,503	)			(8,725	)
Exchange differences on translating foreign operations			30,112				8,806				38,918
Balance as of June 30, 2022		¥	457,480			¥	96,226			¥	553,706

Current liabilities and non-current liabilities of provisions as of March 31, 2022 and June 30, 2022 are as follows:

 

		Yen (millions)
		As of March 31, 2022				As of June 30, 2022
Current liabilities		¥	268,388			¥	287,788
Non-current liabilities			253,625				265,918
Total		¥	522,013			¥	553,706

 

Explanatory note:

 

*

Honda recognizes provisions for product warranties to cover future product warranty expenses. Honda recognizes costs for general warranties on products Honda sells and for specific warranty programs, including product recalls. Honda recognizes general estimated warranty costs at the time products are sold to customers. Honda also recognizes specific estimated warranty program costs when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. These provisions are estimated based on historical warranty claim experience with consideration given to the expected level of future warranty costs as well as current information on repair costs. Provision for product warranties are utilized for expenditures based on the demand from customers and dealers.