Form 6-K
Table of Contents

No.1-7628

 

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF FEBRUARY 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):  ☐

 

 

 


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Contents

Exhibit 1:

On February 7, 2019, Honda Motor Co., Ltd. filed its consolidated financial statements for the fiscal third quarter ended December 31, 2018 with Financial Services Agency in Japan.


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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

HONDA GIKEN KOGYO KABUSHIKI KAISHA (HONDA MOTOR CO., LTD.)

/s/ Eiji Fujimura

Eiji Fujimura

General Manager

Finance Division

Honda Motor Co., Ltd.

Date: February 21, 2019


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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Financial Statements

December 31, 2018


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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Consolidated Financial Results

Overview of Operating Performance

Honda’s consolidated sales revenue for the nine months ended December 31, 2018 increased by 3.4%, to ¥11,839.5 billion from the same period last year, due mainly to increased sales revenue in all business operations. Operating profit decreased by 3.2%, to ¥684.0 billion from the same period last year, due mainly to increased selling, general and administrative expenses 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 same period last year. Profit before income taxes decreased by 6.1%, to ¥868.2 billion from the same period last year. Profit for the period attributable to owners of the parent decreased by 34.5%, to ¥623.3 billion from the same period last year, due mainly to the impacts of the enactment of the Tax Cuts and Jobs Act in the Unites States in the same period last year.

Business Segments

Motorcycle Business

For the nine months ended December 31, 2017 and 2018

 

     Units (thousands)  
     Honda Group Unit Sales*     Consolidated Unit Sales*  
   Nine months
ended
Dec. 31, 2017
     Nine months
ended
Dec. 31, 2018
                 Nine months
ended
Dec. 31, 2017
     Nine months
ended
Dec. 31, 2018
              
   Change     %      Change     %  

Motorcycle Business

     14,807        15,680        873       5.9       9,787        10,378        591       6.0  

Japan

     126        157        31       24.6       126        157        31       24.6  

North America

     232        216        (16     (6.9     232        216        (16     (6.9

Europe

     173        181        8       4.6       173        181        8       4.6  

Asia

     13,460        14,187        727       5.4       8,440        8,885        445       5.3  

Other Regions

     816        939        123       15.1       816        939        123       15.1  

 

*

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 6.1%, to ¥1,610.7 billion from the same period last year, due mainly to increased consolidated unit sales. Operating profit increased by 16.3%, to ¥246.7 billion from the same period last year, due mainly to an increase in profit attributable to increased sales volume and model mix.


Table of Contents

Automobile Business

For the nine months ended December 31, 2017 and 2018

 

     Units (thousands)  
     Honda Group Unit Sales*     Consolidated Unit Sales*  
   Nine months
ended
Dec. 31, 2017
     Nine months
ended
Dec. 31, 2018
                 Nine months
ended
Dec. 31, 2017
     Nine months
ended
Dec. 31, 2018
              
   Change     %      Change     %  

Automobile Business

     3,903        3,959        56       1.4       2,739        2,769          30       1.1  

Japan

     498        515        17         3.4       451        464        13       2.9  

North America

       1,424          1,444        20       1.4       1,424          1,444        20         1.4  

Europe

     127        121        (6     (4.7     127        121        (6     (4.7

Asia

     1,671        1,698         27       1.6       554        559        5       0.9  

Other Regions

     183        181        (2     (1.1     183        181        (2     (1.1

 

*

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 by our Japanese finance subsidiaries and sold 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 1.7%, to ¥8,228.1 billion from the same period last year, due mainly to increased consolidated unit sales. Operating profit decreased by 24.3%, to ¥262.7 billion from the same period last year, due mainly to increased selling, general and administrative expenses as well as negative foreign currency effects, which was partially offset by the loss related to the settlement of multidistrict class action litigation in the same period last year.

Financial Services Business

Sales revenue from external customers increased by 9.4%, to ¥1,746.2 billion from the same period last year, due mainly to an increase in revenues on disposition of lease vehicles and operating lease revenues. Operating profit increased by 19.6%, to ¥176.7 billion from the same period last year, due mainly to an increase in profit attributable to increased sales revenue.

Power Product and Other Businesses

For the nine months ended December 31, 2017 and 2018

 

     Units (thousands)  
     Honda Group Unit Sales / Consolidated Unit Sales*  
   Nine months
ended
Dec. 31, 2017
     Nine months
ended
Dec. 31, 2018
              
   Change     %  

Power Product Business

     3,785        3,954        169       4.5  

Japan

     202        246        44       21.8  

North America

     1,665        1,781        116       7.0  

Europe

     597        600        3       0.5  

Asia

     1,041        1,080        39       3.7  

Other Regions

     280        247        (33     (11.8

 

*

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 3.5%, to ¥254.3 billion from the same period last year, due mainly to increased consolidated unit sales in Power Product business. Operating loss was ¥2.1 billion, an increase of ¥1.8 billion from the same period last year, due mainly to increased operating costs in Other businesses. In addition, operating loss of aircraft and aircraft engines included in the Power Product and other businesses was ¥29.2 billion, an improvement of ¥1.0 billion from the same period last year.


Table of Contents

Cash Flows

Consolidated cash and cash equivalents on December 31, 2018 decreased by ¥62.4 billion from March 31, 2018, to ¥2,194.0 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 ¥498.6 billion of cash inflows. Cash inflows from operating activities decreased by ¥123.9 billion from the same period last year, due mainly to increased payments for parts and raw materials, which was partially offset by increased cash received from customers.

Net cash used in investing activities amounted to ¥496.1 billion of cash outflows. Cash outflows from investing activities increased by ¥64.8 billion from the same period last year, due mainly to increased payments for acquisitions of other financial assets.

Net cash used in financing activities amounted to ¥54.2 billion of cash outflows. Cash outflows from financing activities decreased by ¥76.1 billion from the same period last year, due mainly to an increase in proceeds from financing liabilities, which was partially offset by an increase in repayments of financing liabilities and purchases of treasury stock.


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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Financial Position

March 31, 2018 and December 31, 2018

 

          Yen (millions)  
Assets    Note    March 31, 2018     December 31,
2018
 
          unaudited     unaudited  

Current assets:

       

Cash and cash equivalents

      ¥   2,256,488      ¥   2,194,073   

Trade receivables

        800,463       688,213  

Receivables from financial services

        1,840,699       1,873,742  

Other financial assets

        213,177       229,189  

Inventories

        1,523,455       1,618,680  

Other current assets

        291,006       375,030  
     

 

 

   

 

 

 

Total current assets

        6,925,288       6,978,927  
     

 

 

   

 

 

 

Non-current assets:

       

Investments accounted for using the equity method

        679,517       666,587  

Receivables from financial services

        3,117,364       3,379,984  

Other financial assets

        436,555       477,449  

Equipment on operating leases

   6      4,088,133       4,330,434  

Property, plant and equipment

   7      3,062,433       2,972,261  

Intangible assets

        741,514       744,446  

Deferred tax assets

        129,338       134,763  

Other non-current assets

        169,022       166,350  
     

 

 

   

 

 

 

Total non-current assets

        12,423,876       12,872,274  
     

 

 

   

 

 

 

Total assets

      ¥   19,349,164     ¥   19,851,201  
     

 

 

   

 

 

 


Table of Contents

 

          Yen (millions)  
Liabilities and Equity    Note    March 31, 2018     December 31,
2018
 
          unaudited     unaudited  

Current liabilities:

       

Trade payables

      ¥ 1,224,627     ¥ 1,056,584  

Financing liabilities

        2,917,261       3,138,789  

Accrued expenses

        404,719       427,688  

Other financial liabilities

        115,405       133,109  

Income taxes payable

        53,595       50,062  

Provisions

   8      305,994       285,194  

Other current liabilities

        602,498       569,987  
     

 

 

   

 

 

 

Total current liabilities

        5,624,099       5,661,413  
     

 

 

   

 

 

 

Non-current liabilities:

       

Financing liabilities

        3,881,749       3,998,741  

Other financial liabilities

        60,005       61,342  

Retirement benefit liabilities

        404,401       399,540  

Provisions

   8      220,625       204,607  

Deferred tax liabilities

        629,722       645,765  

Other non-current liabilities

        294,468       309,030  
     

 

 

   

 

 

 

Total non-current liabilities

        5,490,970       5,619,025  
     

 

 

   

 

 

 

Total liabilities

        11,115,069       11,280,438  
     

 

 

   

 

 

 

Equity:

       

Common stock

        86,067       86,067  

Capital surplus

        171,118       171,343  

Treasury stock

        (113,271     (177,826

Retained earnings

        7,611,332       8,028,707  

Other components of equity

        178,292       178,249  
     

 

 

   

 

 

 

Equity attributable to owners of the parent

        7,933,538       8,286,540  

Non-controlling interests

        300,557       284,223  
     

 

 

   

 

 

 

Total equity

        8,234,095       8,570,763  
     

 

 

   

 

 

 

Total liabilities and equity

      ¥   19,349,164     ¥   19,851,201  
     

 

 

   

 

 

 

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

For the nine months ended December 31, 2017 and 2018

 

          Yen (millions)  
     Note    December 31,
2017
    December 31,
2018
 
          unaudited     unaudited  

Sales revenue

   9    ¥ 11,446,418     ¥ 11,839,500  

Operating costs and expenses:

       

Cost of sales

        (8,926,648     (9,325,508

Selling, general and administrative

        (1,280,195     (1,254,501

Research and development

        (532,843     (575,486
     

 

 

   

 

 

 

Total operating costs and expenses

        (10,739,686     (11,155,495
     

 

 

   

 

 

 

Operating profit

        706,732       684,005  
     

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

   5      189,723       169,631  

Finance income and finance costs:

       

Interest income

        30,194       36,172  

Interest expense

        (9,293     (10,065

Other, net

        7,169       (11,492
     

 

 

   

 

 

 

Total finance income and finance costs

        28,070       14,615  
     

 

 

   

 

 

 

Profit before income taxes

        924,525       868,251  

Income tax expense

   10      82,396       (187,436
     

 

 

   

 

 

 

Profit for the period

      ¥ 1,006,921     ¥ 680,815  
     

 

 

   

 

 

 

Profit for the period attributable to:

       

Owners of the parent

        951,592       623,339  

Non-controlling interests

        55,329       57,476  
          Yen  
          December 31,
2017
    December 31,
2018
 

Earnings per share attributable to owners of the parent

       

Basic and diluted

   13    ¥ 529.39     ¥ 353.10  

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

For the nine months ended December 31, 2017 and 2018

 

          Yen (millions)  
     Note    December 31,
2017
    December 31,
2018
 
          unaudited     unaudited  

Profit for the period

      ¥    1,006,921     ¥       680,815  

Other comprehensive income, net of tax:

       

Items that will not be reclassified to profit or loss

       

Remeasurements of defined benefit plans

        (24,210     —    

Net changes in revaluation of financial assets measured at fair value through other comprehensive income

        28,417       (25,697

Share of other comprehensive income of investments accounted for using the equity method

        2,352       (3,023

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

        —         120  

Exchange differences on translating foreign operations

        104,807       29,817  

Share of other comprehensive income of investments accounted for using the equity method

        19,033       (23,918
     

 

 

   

 

 

 

Total other comprehensive income, net of tax

        130,399       (22,701
     

 

 

   

 

 

 

Comprehensive income for the period

      ¥ 1,137,320     ¥ 658,114  
     

 

 

   

 

 

 

Comprehensive income for the period attributable to:

       

Owners of the parent

        1,072,640       606,702  

Non-controlling interests

        64,680       51,412  

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

For the three months ended December 31, 2017 and 2018

 

          Yen (millions)  
     Note    December 31,
2017
    December 31,
2018
 
          unaudited     unaudited  

Sales revenue

   9    ¥    3,957,123     ¥    3,973,655  

Operating costs and expenses:

       

Cost of sales

        (3,063,005     (3,158,104

Selling, general and administrative

        (422,923     (444,556

Research and development

        (186,619     (200,848
     

 

 

   

 

 

 

Total operating costs and expenses

        (3,672,547     (3,803,508
     

 

 

   

 

 

 

Operating profit

        284,576       170,147  
     

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

        54,512       51,403  

Finance income and finance costs:

       

Interest income

        11,381       12,848  

Interest expense

        (3,142     (4,108

Other, net

        (430     (3,363
     

 

 

   

 

 

 

Total finance income and finance costs

        7,809       5,377  
     

 

 

   

 

 

 

Profit before income taxes

        346,897       226,927  

Income tax expense

   10      242,871       (42,059
     

 

 

   

 

 

 

Profit for the period

      ¥ 589,768     ¥ 184,868  
     

 

 

   

 

 

 

Profit for the period attributable to:

       

Owners of the parent

        570,251       168,238  

Non-controlling interests

        19,517       16,630  
          Yen  
          December 31,
2017
    December 31,
2018
 

Earnings per share attributable to owners of the parent

       

Basic and diluted

   13    ¥ 318.50     ¥ 95.61  

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

For the three months ended December 31, 2017 and 2018

 

          Yen (millions)  
     Note    December 31,
2017
    December 31,
2018
 
          unaudited     unaudited  

Profit for the period

      ¥       589,768     ¥       184,868  

Other comprehensive income, net of tax:

       

Items that will not be reclassified to profit or loss

       

Remeasurements of defined benefit plans

        (24,210     —    

Net changes in revaluation of financial assets measured at fair value through other comprehensive income

        16,360       (26,131

Share of other comprehensive income of investments accounted for using the equity method

        2,450       (2,278

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

        —         161  

Exchange differences on translating foreign operations

        18,673       (169,559

Share of other comprehensive income of investments accounted for using the equity method

        7,752       (6,168
     

 

 

   

 

 

 

Total other comprehensive income, net of tax

        21,025       (203,975
     

 

 

   

 

 

 

Comprehensive income for the period

      ¥ 610,793     ¥ (19,107
     

 

 

   

 

 

 

Comprehensive income for the period attributable to:

       

Owners of the parent

        587,954       (28,313

Non-controlling interests

        22,839       9,206  

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Equity

For the nine months ended December 31, 2017 and 2018

 

          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, 2017 (unaudited)

    ¥ 86,067     ¥ 171,118     ¥ (26,189   ¥ 6,712,894     ¥ 351,406     ¥ 7,295,296     ¥ 274,330     ¥ 7,569,626  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income for the period

                 

Profit for the period

            951,592         951,592       55,329       1,006,921  

Other comprehensive income, net of tax

              121,048       121,048       9,351       130,399  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the period

            951,592       121,048       1,072,640       64,680       1,137,320  

Reclassification to retained earnings

            (23,096     23,096       —           —    

Transactions with owners and other

                 

Dividends paid

    14             (129,764       (129,764     (40,002     (169,766

Purchases of treasury stock

          (87,080         (87,080       (87,080
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

          (87,080     (129,764       (216,844     (40,002     (256,846
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of December 31, 2017 (unaudited)

    ¥ 86,067     ¥ 171,118     ¥ (113,269   ¥ 7,511,626     ¥ 495,550     ¥ 8,151,092     ¥ 299,008     ¥ 8,450,100  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
          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, 2018 (unaudited)

    ¥ 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

    3             (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 period

                 

Profit for the period

            623,339         623,339       57,476       680,815  

Other comprehensive income, net of tax

              (16,637     (16,637     (6,064     (22,701
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the period

            623,339       (16,637     606,702       51,412       658,114  

Reclassification to retained earnings

            (1,906     1,906       —           —    

Transactions with owners and other

                 

Dividends paid

    14             (144,983       (144,983     (65,039     (210,022

Purchases of treasury stock

          (64,556         (64,556       (64,556

Disposal of treasury stock

          1           1         1  

Share-based payment transactions

        225             225         225  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

        225       (64,555     (144,983       (209,313     (65,039     (274,352
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other changes

            (2,788       (2,788     (2,713     (5,501
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of December 31, 2018 (unaudited)

    ¥ 86,067     ¥ 171,343     ¥ (177,826   ¥ 8,028,707     ¥ 178,249     ¥ 8,286,540     ¥ 284,223     ¥ 8,570,763  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

For the nine months ended December 31, 2017 and 2018

 

            Yen (millions)  
     Note      December 31,
2017
    December 31,
2018
 
            unaudited     unaudited  

Cash flows from operating activities:

       

Profit before income taxes

      ¥ 924,525     ¥ 868,251  

Depreciation, amortization and impairment losses excluding equipment on operating leases

        531,230       518,386  

Share of profit of investments accounted for using the equity method

        (189,723     (169,631

Finance income and finance costs, net

        11,628       (68,087

Interest income and interest costs from financial services, net

        (96,331     (92,655

Changes in assets and liabilities

       

Trade receivables

        57,230       105,991  

Inventories

        (104,753     (105,008

Trade payables

        (72,579     (85,229

Accrued expenses

        (39,806     (34,658

Provisions and retirement benefit liabilities

        (79,965     (22,445

Receivables from financial services

        (121,704     (165,210

Equipment on operating leases

        (136,548     (141,291

Other assets and liabilities

        (64,373     (101,717

Other, net

        4,483       108  

Dividends received

        79,542       98,624  

Interest received

        184,581       201,325  

Interest paid

        (79,611     (105,418

Income taxes paid, net of refunds

        (185,174     (202,677
     

 

 

   

 

 

 

Net cash provided by operating activities

        622,652       498,659  

Cash flows from investing activities:

       

Payments for additions to property, plant and equipment

        (318,457     (316,581

Payments for additions to and internally developed intangible assets

        (112,706     (136,115

Proceeds from sales of property, plant and equipment and intangible assets

        15,089       16,381  

Payments for acquisitions of investments accounted for using the equity method

        (2,450     (2,401

Payments for acquisitions of other financial assets

        (188,995     (449,654

Proceeds from sales and redemptions of other financial assets

        175,488       389,553  

Other, net

        719       2,649  
     

 

 

   

 

 

 

Net cash used in investing activities

        (431,312     (496,168

Cash flows from financing activities:

       

Proceeds from short-term financing liabilities

        5,723,203       6,085,890  

Repayments of short-term financing liabilities

        (5,537,683     (5,865,684

Proceeds from long-term financing liabilities

        1,203,256       1,290,354  

Repayments of long-term financing liabilities

        (1,228,275     (1,256,400

Dividends paid to owners of the parent

        (129,764     (144,983

Dividends paid to non-controlling interests

        (39,392     (61,786

Purchases and sales of treasury stock, net

        (87,080     (64,555

Other, net

        (34,630     (37,061
     

 

 

   

 

 

 

Net cash used in financing activities

        (130,365     (54,225

Effect of exchange rate changes on cash and cash equivalents

        43,534       (10,681
     

 

 

   

 

 

 

Net change in cash and cash equivalents

        104,509       (62,415

Cash and cash equivalents at beginning of year

        2,105,976       2,256,488  
     

 

 

   

 

 

 

Cash and cash equivalents at end of period

      ¥ 2,210,485     ¥ 2,194,073  
     

 

 

   

 

 

 

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

 

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, the United Kingdom, Turkey, Italy, France, China, India, Indonesia, Malaysia, 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, 2018, 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, 2018.


Table of Contents

 

2

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(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, 2018, except for the changes below.

(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  


Table of Contents

 

3

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

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 ¥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 IFRS 15, if it is deemed material, while such sales 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.


Table of Contents

 

4

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

The impacts of adopting IFRS 15 on Honda’s condensed consolidated financial statements as of and for the nine months and the three months ended December 31, 2018 are as follows:

(Condensed Consolidated Statements of Financial Position)

As of December 31, 2018

 

     Yen (millions)  
     Balances without
adoption of
IFRS 15
    Adjustments     As reported  
Assets                   

Current assets:

      

Cash and cash equivalents

   ¥ 2,194,073     ¥ —       ¥ 2,194,073  

Trade receivables

     689,495       (1,282     688,213  

Receivables from financial services

     1,873,742       —         1,873,742   

Other financial assets

     229,189       —         229,189  

Inventories

     1,618,680        —         1,618,680  

Other current assets

     374,224       806       375,030  
  

 

 

   

 

 

   

 

 

 

Total current assets

     6,979,403       (476     6,978,927  
  

 

 

   

 

 

   

 

 

 

Non-current assets:

      

Investments accounted for using the equity method

     666,575       12       666,587  

Receivables from financial services

     3,379,984       —         3,379,984  

Other financial assets

     477,449       —         477,449  

Equipment on operating leases

     4,330,434       —         4,330,434  

Property, plant and equipment

     2,972,261       —         2,972,261  

Intangible assets

     744,446       —         744,446  

Deferred tax assets

     134,348       415       134,763  

Other non-current assets

     165,544       806       166,350  
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     12,871,041         1,233       12,872,274  
  

 

 

   

 

 

   

 

 

 

Total assets

     19,850,444       757       19,851,201  
  

 

 

   

 

 

   

 

 

 


Table of Contents

 

5

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

     Yen (millions)  
     Balances without
adoption of
IFRS 15
    Adjustments     As reported  
Liabilities and Equity                   

Current liabilities:

      

Trade payables

   ¥ 1,056,584     ¥ —       ¥ 1,056,584  

Financing liabilities

     3,138,789       —         3,138,789  

Accrued expenses

     367,652       60,036       427,688  

Other financial liabilities

     133,109       —         133,109  

Income taxes payable

     50,062       —         50,062  

Provisions

     289,013       (3,819     285,194  

Other current liabilities

     554,740       15,247       569,987  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     5,589,949       71,464       5,661,413  
  

 

 

   

 

 

   

 

 

 

Non-current liabilities:

      

Financing liabilities

     3,998,741       —         3,998,741  

Other financial liabilities

     61,342       —         61,342  

Retirement benefit liabilities

     399,540       —         399,540  

Provisions

     205,579       (972     204,607  

Deferred tax liabilities

     662,934       (17,169     645,765  

Other non-current liabilities

     307,814       1,216       309,030  
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     5,635,950       (16,925     5,619,025  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     11,225,899       54,539       11,280,438  
  

 

 

   

 

 

   

 

 

 

Equity:

      

Common stock

     86,067       —         86,067  

Capital surplus

     171,343       —         171,343  

Treasury stock

     (177,826     —         (177,826

Retained earnings

     8,081,616       (52,909     8,028,707  

Other components of equity

     178,910       (661     178,249  
  

 

 

   

 

 

   

 

 

 

Equity attributable to owners of the parent

     8,340,110       (53,570     8,286,540  

Non-controlling interests

     284,435       (212     284,223  
  

 

 

   

 

 

   

 

 

 

Total equity

     8,624,545       (53,782     8,570,763  
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

     19,850,444       757       19,851,201  
  

 

 

   

 

 

   

 

 

 


Table of Contents

 

6

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(Condensed Consolidated Statements of Income)

For the nine months ended December 31, 2018

 

     Yen (millions)  
     Balances without
adoption of
IFRS 15
    Adjustments     As reported  

Sales revenue

   ¥ 11,851,234     ¥ (11,734   ¥ 11,839,500  

Operating costs and expenses:

      

Cost of sales

     (9,327,471     1,963       (9,325,508

Selling, general and administrative

     (1,255,114     613       (1,254,501

Research and development

     (575,486     —         (575,486
  

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     (11,158,071     2,576       (11,155,495
  

 

 

   

 

 

   

 

 

 

Operating profit

     693,163       (9,158     684,005  
  

 

 

   

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

     169,629       2       169,631  

Finance income and finance costs:

      

Interest income

     36,172       —         36,172  

Interest expense

     (10,065     —         (10,065

Other, net

     (11,492     —         (11,492
  

 

 

   

 

 

   

 

 

 

Total finance income and finance costs

     14,615       —         14,615  
  

 

 

   

 

 

   

 

 

 

Profit before income taxes

     877,407       (9,156     868,251  

Income tax expense

     (189,703     2,267       (187,436
  

 

 

   

 

 

   

 

 

 

Profit for the period

     687,704       (6,889     680,815  
  

 

 

   

 

 

   

 

 

 

Profit for the period attributable to:

      

Owners of the parent

     629,606       (6,267     623,339  

Non-controlling interests

     58,098       (622     57,476  
For the three months ended December 31, 2018   
     Yen (millions)  
     Balances without
adoption of
IFRS 15
    Adjustments     As reported  

Sales revenue

   ¥ 4,017,243     ¥ (43,588   ¥   3,973,655  

Operating costs and expenses:

      

Cost of sales

     (3,158,630     526       (3,158,104

Selling, general and administrative

     (444,354     (202     (444,556

Research and development

     (200,848     —         (200,848
  

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     (3,803,832     324       (3,803,508
  

 

 

   

 

 

   

 

 

 

Operating profit

     213,411       (43,264     170,147  
  

 

 

   

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

     51,402       1       51,403  

Finance income and finance costs:

      

Interest income

     12,848       —         12,848  

Interest expense

     (4,108     —         (4,108

Other, net

     (3,363     —         (3,363
  

 

 

   

 

 

   

 

 

 

Total finance income and finance costs

     5,377       —         5,377  
  

 

 

   

 

 

   

 

 

 

Profit before income taxes

     270,190       (43,263     226,927  

Income tax expense

     (53,099     11,040       (42,059
  

 

 

   

 

 

   

 

 

 

Profit for the period

     217,091       (32,223     184,868  
  

 

 

   

 

 

   

 

 

 

Profit for the period attributable to:

      

Owners of the parent

     200,315       (32,077     168,238  

Non-controlling interests

     16,776       (146     16,630  


Table of Contents

 

7

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(4) Segment Information

Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Power Product and other businesses, which are based on Honda’s organizational structure and characteristics of products and services. Operating segments are defined as 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

Power Product and Other Businesses

   Power products and relevant parts, and others    Research and development
Manufacturing
Sales and related services
Others

   (a) Segment Information

Segment information as of and for the nine months ended December 31, 2017 and 2018 is as follows:

 

                                                                                                                                    
As of and for the nine months ended December 31, 2017

 

 
     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Power
Product
and Other
Businesses
    Segment
Total
     Reconciling
Items
    Consolidated  

Sales revenue:

                  

External customers

   ¥ 1,517,766      ¥ 8,087,128      ¥ 1,595,750      ¥ 245,774     ¥ 11,446,418      ¥ —       ¥ 11,446,418  

Intersegment

     —          131,939        10,633        18,625       161,197        (161,197     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     1,517,766        8,219,067        1,606,383        264,399       11,607,615        (161,197     11,446,418  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

   ¥ 212,185      ¥ 347,064      ¥ 147,816      ¥ (333   ¥ 706,732      ¥ —       ¥ 706,732  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment assets

   ¥ 1,489,767      ¥ 7,875,109      ¥ 9,867,147      ¥ 334,638     ¥ 19,566,661      ¥ 194,804     ¥  19,761,465  

Depreciation and amortization

     55,986        459,241        559,239        11,654       1,086,120        —         1,086,120  

Capital expenditures

     35,228        357,005        1,374,254        7,213       1,773,700        —         1,773,700  


Table of Contents

 

8

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

                                                                                                                                    
As of and for the nine months ended December 31, 2018

 

 
     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Power
Product
and Other
Businesses
    Segment
Total
     Reconciling
Items
    Consolidated  

Sales revenue:

                  

External customers

   ¥ 1,610,740      ¥ 8,228,119      ¥ 1,746,285      ¥ 254,356     ¥ 11,839,500      ¥ —       ¥ 11,839,500  

Intersegment

     —          146,792        11,202        19,840       177,834        (177,834     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     1,610,740        8,374,911        1,757,487        274,196       12,017,334        (177,834     11,839,500  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

   ¥ 246,711      ¥ 262,734      ¥ 176,746      ¥ (2,186   ¥ 684,005      ¥ —       ¥ 684,005  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment assets

   ¥ 1,437,358      ¥ 7,749,612      ¥ 9,944,099      ¥ 327,153     ¥ 19,458,222      ¥ 392,979     ¥ 19,851,201  

Depreciation and amortization

     49,304        455,477        583,184        10,871       1,098,836        —         1,098,836  

Capital expenditures

     46,708        363,963        1,468,846        9,540       1,889,057        —         1,889,057  

Segment information for the three months ended December 31, 2017 and 2018 is as follows:

 

For the three months ended December 31, 2017

 

 
     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Power
Product
and Other
Businesses
    Segment
Total
     Reconciling
Items
    Consolidated  

Sales revenue:

                  

External customers

   ¥ 499,117      ¥ 2,849,328      ¥ 523,558      ¥ 85,120     ¥ 3,957,123      ¥ —       ¥ 3,957,123  

Intersegment

     —          52,085        3,572        8,362       64,019        (64,019     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     499,117        2,901,413        527,130        93,482       4,021,142        (64,019     3,957,123  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

   ¥ 64,823      ¥ 167,497      ¥ 50,701      ¥ 1,555     ¥ 284,576      ¥ —       ¥ 284,576  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
For the three months ended December 31, 2018

 

 
     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Power
Product
and Other
Businesses
    Segment
Total
     Reconciling
Items
    Consolidated  

Sales revenue:

                  

External customers

   ¥ 516,514      ¥ 2,806,148      ¥ 560,305      ¥ 90,688     ¥ 3,973,655      ¥ —       ¥ 3,973,655  

Intersegment

     —          53,408        3,716        8,704       65,828        (65,828     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     516,514        2,859,556        564,021        99,392       4,039,483        (65,828     3,973,655  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

   ¥ 69,537      ¥ 41,228      ¥ 60,374      ¥ (992   ¥ 170,147      ¥ —       ¥ 170,147  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

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 December 31, 2017 and 2018 amounted to ¥523,929 million and ¥654,744 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.


Table of Contents

 

9

 

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 nine months ended December 31, 2017

 

                                                                                                                                                       
    Yen (millions)  
    Japan     North
America
    Europe     Asia     Other
Regions
    Total     Reconciling
Items
    Consolidated  

Sales revenue:

               

External customers

  ¥ 1,612,740     ¥ 6,060,094     ¥ 473,183     ¥ 2,686,496     ¥ 613,905     ¥ 11,446,418     ¥ —       ¥ 11,446,418  

Inter-geographic areas

    1,628,595       375,822       166,646       496,432       4,720       2,672,215       (2,672,215     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    3,241,335       6,435,916       639,829       3,182,928       618,625       14,118,633       (2,672,215     11,446,418  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit (loss)

  ¥ 119,135     ¥ 206,992     ¥ 11,757     ¥ 319,285     ¥ 34,482     ¥ 691,651     ¥ 15,081     ¥ 706,732  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Assets

  ¥ 4,332,709     ¥ 11,128,906     ¥ 685,811     ¥ 2,921,112     ¥ 677,332     ¥ 19,745,870     ¥ 15,595     ¥ 19,761,465  

Non-current assets other than financial instruments and deferred tax assets

  ¥ 2,498,753     ¥ 4,885,452     ¥ 106,163     ¥ 711,057     ¥ 169,757     ¥ 8,371,182     ¥ —       ¥ 8,371,182  

As of and for the nine months ended December 31, 2018

                                                                                                                                                       
    Yen (millions)  
    Japan     North
America
    Europe     Asia     Other
Regions
    Total     Reconciling
Items
    Consolidated  

Sales revenue:

               

External customers

  ¥ 1,750,679     ¥ 6,319,470     ¥ 462,264     ¥ 2,738,003     ¥ 569,084     ¥ 11,839,500     ¥ —       ¥ 11,839,500  

Inter-geographic areas

    1,891,295       375,358       204,574       537,150       5,418       3,013,795       (3,013,795     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    3,641,974       6,694,828       666,838       3,275,153       574,502       14,853,295       (3,013,795     11,839,500  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit (loss)

  ¥ 85,496     ¥ 213,839     ¥ 8,582     ¥ 343,271     ¥ 32,745     ¥ 683,933     ¥ 72     ¥ 684,005  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Assets

  ¥ 4,510,933     ¥ 11,104,584     ¥ 664,122     ¥ 2,891,842     ¥ 610,717     ¥ 19,782,198     ¥ 69,003     ¥ 19,851,201  

Non-current assets other than financial instruments and deferred tax assets

  ¥ 2,617,310     ¥ 4,694,949     ¥ 90,489     ¥ 665,401     ¥ 145,342     ¥ 8,213,491     ¥ —       ¥ 8,213,491  

For the three months ended December 31, 2017

                                                                                                                                                       
    Yen (millions)  
    Japan     North
America
    Europe     Asia     Other
Regions
    Total     Reconciling
Items
    Consolidated  

Sales revenue:

               

External customers

  ¥ 557,410     ¥ 2,114,553     ¥ 148,354     ¥ 926,136     ¥ 210,670     ¥   3,957,123     ¥ —       ¥   3,957,123  

Inter-geographic areas

    600,637       123,255       69,242       180,876       1,452       975,462       (975,462     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    1,158,047         2,237,808       217,596         1,107,012       212,122       4,932,585       (975,462     3,957,123  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit (loss)

  ¥ 63,275     ¥ 106,063     ¥ 2,575     ¥ 111,139     ¥ 7,751     ¥ 290,803     ¥ (6,227   ¥ 284,576  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Table of Contents

 

10

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

                                                                                                                                                       
For the three months ended December 31, 2018

 

    Yen (millions)  
    Japan     North
America
    Europe     Asia     Other
Regions
    Total     Reconciling
Items
    Consolidated  

Sales revenue:

               

External customers

  ¥ 620,730     ¥ 2,126,699     ¥ 143,432     ¥ 889,906     ¥ 192,888     ¥ 3,973,655     ¥ —       ¥   3,973,655  

Inter-geographic areas

    675,383       123,560       75,375       175,886       1,816       1,052,020       (1,052,020     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    1,296,113       2,250,259       218,807       1,065,792       194,704       5,025,675       (1,052,020     3,973,655  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit (loss)

  ¥ 43,382     ¥ 49,996     ¥ 1,311     ¥ 93,162     ¥ 2,120     ¥ 189,971     ¥ (19,824)     ¥ 170,147  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Explanatory notes:

 

1.

Major countries or regions in each geographic area:

 

North America    United States, Canada, Mexico
Europe    United Kingdom, Germany, Belgium, Turkey, Italy
Asia    Thailand, Indonesia, China, India, Vietnam
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 December 31, 2017 and 2018 amounted to ¥523,929 million and ¥654,744 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) Reversal of impairment loss on investments accounted for using the equity method

For the nine months ended December 31, 2017, the Company recognized reversal of impairment losses of ¥15,782 million, which had been previously recognized, on certain investments accounted for using the equity method mainly due to the recovery of quoted market values. The reversal of impairment losses is included in share of profit of investments accounted for using the equity method in the condensed consolidated statement of income. For the nine months ended December 31, 2018, the Company did not recognize any significant reversal of impairment losses.

(6) Equipment on Operating Leases

The additions to equipment on operating leases for the nine months ended December 31, 2017 and 2018 are ¥1,372,335 million and ¥1,466,827 million, respectively.

The sales or disposals of equipment on operating leases for the nine months ended December 31, 2017 and 2018 are ¥668,256 million and ¥735,138 million, respectively.

(7) Property, Plant and Equipment

The additions to property, plant and equipment for the nine months ended December 31, 2017 and 2018 are ¥315,608 million and ¥316,498 million, respectively.

The sales or disposals of property, plant and equipment for the nine months ended December 31, 2017 and 2018 are ¥30,444 million and ¥32,243 million, respectively.


Table of Contents

 

11

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(8) Provisions

The components of and changes in provisions for the nine months ended December 31, 2018 are as follows:

 

     Yen (millions)  
     Product
warranties*
    Other     Total  

Balance as of March 31, 2018

   ¥ 457,596     ¥ 69,023     ¥ 526,619  
  

 

 

   

 

 

   

 

 

 

Effect of changes in accounting policy

     (4,536     —         (4,536
  

 

 

   

 

 

   

 

 

 

Balance as of April 1, 2018

     453,060       69,023       522,083  
  

 

 

   

 

 

   

 

 

 

Provision

   ¥ 147,663     ¥ 21,645     ¥ 169,308  

Charge-offs

     (166,034     (18,954     (184,988

Reversal

     (12,105     (8,629     (20,734

Exchange differences on translating foreign operations

     4,333       (201     4,132  
  

 

 

   

 

 

   

 

 

 

Balance as of December 31, 2018

   ¥ 426,917     ¥ 62,884     ¥ 489,801  
  

 

 

   

 

 

   

 

 

 

Current liabilities and non-current liabilities of provisions as of March 31, 2018 and December 31, 2018 are as follows:

 

     Yen (millions)  
     As of March 31,
2018
     As of December 31,
2018
 

Current liabilities

   ¥ 305,994      ¥ 285,194  

Non-current liabilities

     220,625        204,607  
  

 

 

    

 

 

 

Total

   ¥ 526,619      ¥ 489,801  
  

 

 

    

 

 

 

 

Explanatory notes:

 

*

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.


Table of Contents

 

12

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(9) Sales Revenue

As stated in Note 4, Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Power Product and other businesses.

The sales revenue disaggregated by geographical markets based on the location of the customer and the reconciliation of the disaggregated revenue with the four reportable segments for the nine months and the three months ended December 31, 2018 are as follows:

For the nine months ended December 31, 2018

 

     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Power
Product
and Other
Businesses
     Total  

Revenue arising from Contracts with Customers

              

Japan

   ¥ 60,864      ¥ 1,147,678      ¥ 65,160      ¥ 69,094      ¥ 1,342,796  

North America

     138,977        4,578,382        742,391        97,340        5,557,090  

Europe

     115,353        305,019        —          39,015        459,387  

Asia

     1,070,666        1,804,174        31        34,519        2,909,390  

Other Regions

     224,274        382,815        —          14,312        621,401  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥   1,610,134      ¥   8,218,068      ¥ 807,582      ¥ 254,280      ¥ 10,890,064  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Revenue arising from the other sources*

     606        10,051        938,703        76        949,436  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥ 1,610,740      ¥ 8,228,119      ¥   1,746,285      ¥ 254,356      ¥ 11,839,500  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For the three months ended December 31, 2018

 

     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Power
Product
and Other
Businesses
     Total  

Revenue arising from Contracts with Customers

              

Japan

   ¥ 20,489      ¥ 401,580      ¥ 21,226      ¥ 28,825      ¥ 472,120  

North America

     41,242        1,572,603        214,558        34,406        1,862,809  

Europe

     25,946        104,466        —          11,446        141,858  

Asia

     350,974        595,769        —          10,215        956,958  

Other Regions

     77,258        128,933        —          5,720        211,911  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥ 515,909      ¥ 2,803,351      ¥ 235,784      ¥   90,612      ¥ 3,645,656  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Revenue arising from the other sources*

     605        2,797        324,521        76        327,999  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥ 516,514      ¥ 2,806,148      ¥ 560,305      ¥ 90,688      ¥ 3,973,655  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Explanatory notes:

 

*

Revenue arising from the other sources primarily includes lease revenues recognized under IAS 17 and interest recognized under IFRS 9.


Table of Contents

 

13

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(10) Income Taxes

The Tax Cuts and Jobs Act (“the Act”) was enacted in the United States on December 22, 2017. Due to the Act, the federal corporate income tax rate in the United States applicable to the Company’s United States businesses was reduced from 35% to a blended rate of 31.55% for the fiscal year ended March 31, 2018 and to 21% from the fiscal year commencing on April 1, 2018.

The Company had recognized impacts of the enactment of the Act, including a decrease in income tax expenses of ¥346,129 million, as a result of reevaluating deferred tax assets and liabilities in its consolidated subsidiaries in the United States based on the reduced federal corporate income tax rate, in the third quarter of the fiscal year ended March 31, 2018.


Table of Contents

 

14

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(11) Fair Value

(a) Definition of Fair Value Hierarchy

Honda uses a three-level hierarchy when measuring fair value. The following is a description of the three hierarchy levels:

 

Level 1    Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date
Level 2    Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly
Level 3    Unobservable inputs for the assets or liabilities

The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest input that is significant to the fair value measurement in its entirety. Honda recognizes the transfers between the levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

(b) Method of Fair Value Measurement

The fair values of assets and liabilities are determined based on relevant market information and through the use of an appropriate valuation method.

The measurement methods and assumptions used in the measurement of assets and liabilities are as follows:

(Cash and cash equivalents, trade receivables and trade payables)

The fair values approximate their carrying amounts due to their short-term maturities.

(Receivables from financial services)

The fair value of receivables from financial services is measured primarily by discounting future cash flows using the current interest rates applicable for these receivables of similar remaining maturities. Fair value measurement for receivables from financial services is classified as Level 3.

(Debt securities)

Debt securities consist mainly of mutual funds, corporate bonds, local bonds and auction rate securities.

The fair value of mutual funds with an active market is measured by using quoted market prices. Fair value measurement for mutual funds with an active market is classified as Level 1.

The fair values of corporate bonds and local bonds are measured based on proprietary pricing models provided by specialists and/or market makers and the models obtain a wide array of market observable inputs such as credit ratings and discount rates. Fair value measurements for corporate bonds and local bonds are classified as Level 2.


Table of Contents

 

15

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

The subsidiary’s auction rate securities are A to AAA rated and are insured by qualified guarantee agencies, and reinsured by the Secretary of Education and the United States government, and guaranteed at approximately 95% by the United States government. To measure fair value of auction rate securities, Honda uses a third-party-developed valuation model which obtains a wide array of market observable inputs, as well as unobservable inputs including probability of passing or failing auction at each auction. Fair value measurement for auction rate securities is classified as Level 3.

(Equity securities)

The fair value of equity securities with an active market is measured by using quoted market prices. Fair value measurement for equity securities with an active market is classified as Level 1.

The fair value of equity securities with no active market is measured mainly by using the comparable company valuation method and other appropriate valuation methods. Fair value measurement for equity securities with no active market is classified as Level 3. In addition, in the case that cost represents the best estimate of fair value, fair value for the equity securities with no active market is measured at cost.

Price book-value ratio (PBR) of a comparable company are used as a significant unobservable input in the fair value measurement of equity securities classified as Level 3. The fair value increases (decreases) as PBR of a comparable company rise (decline). Such fair value measurements are conducted in accordance with the group accounting policy approved by the appropriate person of authority and based upon valuation methods determined by a valuator such as personnel in accounting divisions of Honda.

(Derivatives)

Derivatives consist mainly of foreign currency forward exchange contracts, foreign currency option contracts, currency swap agreements and interest rate swap agreements.

The fair values of foreign currency forward exchange contracts and foreign currency option contracts are measured by using market observable inputs such as spot exchange rates, discount rates and implied volatility. The fair values of currency swap agreements and interest rate swap agreements are measured by discounting future cash flows using market observable inputs such as LIBOR rates, swap rates, and foreign exchange rates. Fair value measurements for these derivatives are classified as Level 2.

The credit risk of the counterparties is considered in the valuation of derivatives.

(Financing liabilities)

The fair value of financing liabilities is measured by discounting future cash flows using interest rates currently available for liabilities of similar terms and remaining maturities. Fair value measurement of financing liabilities is mainly classified as Level 2.


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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(c) Assets and Liabilities Measured at Fair Value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 and December 31, 2018 consist of the following:

 

     Yen (millions)  

As of March 31, 2018

   Level 1      Level 2      Level 3      Total  

Other financial assets:

           

Financial assets measured at fair value through profit or loss:

           

Derivatives

           

Foreign exchange instruments

   ¥ —        ¥ 38,926      ¥ —        ¥ 38,926  

Interest rate instruments

     —          49,419        —          49,419  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —          88,345        —          88,345  
  

 

 

    

 

 

    

 

 

    

 

 

 

Debt securities

     26,763        37,860        5,206        69,829  

Financial assets measured at fair value through other comprehensive income:

           

Debt securities

     —          —          —          —    

Equity securities

     198,011        —          12,671        210,682  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥ 224,774      ¥ 126,205      ¥   17,877      ¥   368,856  
  

 

 

    

 

 

    

 

 

    

 

 

 

Other financial liabilities:

           

Financial liabilities measured at fair value through profit or loss:

           

Derivatives

           

Foreign exchange instruments

   ¥ —        ¥ 16,417      ¥ —        ¥ 16,417  

Interest rate instruments

     —          36,369        —          36,369  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —          52,786        —          52,786  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥ —        ¥ 52,786      ¥ —        ¥ 52,786  
  

 

 

    

 

 

    

 

 

    

 

 

 

There were no transfers between Level 1 and Level 2 for the year ended March 31, 2018.

 

     Yen (millions)  

As of December 31, 2018

   Level 1      Level 2      Level 3      Total  

Other financial assets:

           

Financial assets measured at fair value through profit or loss:

           

Derivatives

           

Foreign exchange instruments

   ¥ —        ¥ 20,680      ¥ —        ¥ 20,680  

Interest rate instruments

     —          39,363        —          39,363  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —          60,043        —          60,043  
  

 

 

    

 

 

    

 

 

    

 

 

 

Debt securities

     19,964        28,514        5,408        53,886  

Financial assets measured at fair value through other comprehensive income:

           

Debt securities

     —          12,589        —          12,589  

Equity securities

     167,921        —          95,169        263,090  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥ 187,885      ¥ 101,146      ¥ 100,577      ¥   389,608  
  

 

 

    

 

 

    

 

 

    

 

 

 

Other financial liabilities:

           

Financial liabilities measured at fair value through profit or loss:

           

Derivatives

           

Foreign exchange instruments

   ¥ —        ¥ 30,498      ¥ —        ¥ 30,498  

Interest rate instruments

     —          29,818        —          29,818  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —          60,316        —          60,316  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥ —        ¥ 60,316      ¥ —        ¥ 60,316  
  

 

 

    

 

 

    

 

 

    

 

 

 

There were no transfers between Level 1 and Level 2 for the nine months ended December 31, 2018.


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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

There were no significant effects of the measurements on profit or loss or other comprehensive income in Level 3 assets and liabilities measured at fair value on a recurring basis for the nine months ended December 31, 2018.

(d) Financial Assets and Financial Liabilities measured at amortized cost

The carrying amounts and fair values of financial assets and financial liabilities measured at amortized cost as of March 31, 2018 and December 31, 2018 are as follows:

 

     Yen (millions)  
     As of March 31,
2018
     As of December 31,
2018
 
     Carrying
amount
     Fair value      Carrying
amount
     Fair value  

Receivables from financial services

   ¥ 4,958,063      ¥ 4,935,772      ¥ 5,253,726      ¥ 5,228,916  

Debt securities

     104,286        104,284        68,259        68,261  

Financing liabilities

     6,799,010        6,795,675        7,137,530        7,123,737  

The table does not include financial assets and financial liabilities measured at amortized cost whose fair values approximate their carrying amounts.


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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(12) Contingent Liabilities

Claims and Lawsuits

Honda is subject to potential liability under various lawsuits and claims. Honda recognizes a provision for loss contingencies 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. Honda reviews these pending lawsuits and claims periodically and adjusts the amounts recognized for these contingent liabilities, if necessary, by considering the nature of lawsuits and claims, the progress of the case and the opinions of legal counsel.

With respect to product liability, personal injury claims or lawsuits, Honda believes that any judgment that may be recovered by any plaintiff for general and special damages and court costs will be adequately covered by Honda’s insurance and provision. Punitive damages are claimed in certain of these lawsuits.

After consultation with legal counsel, and taking into account all known factors pertaining to existing lawsuits and claims, Honda believes that the ultimate outcome of such lawsuits and pending claims should not result in liability to Honda that would be likely to have an adverse material effect on its consolidated financial position or results of operations.

Loss related to airbag inflators

Honda has been conducting market-based measures in relation to airbag inflators. Honda recognizes a provision for specific warranty costs when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. There is a possibility that Honda will need to recognize additional provisions when new evidence related to the product recalls arise, however, it is not possible for Honda to reasonably estimate the amount and timing of potential future losses as of the date of this report.

In the United States and Canada, various class action lawsuits and civil lawsuits related to the above mentioned market-based measures were filed against Honda. The plaintiffs claimed for properly functioning airbag inflators, compensation of economic losses including incurred costs and the decline in the value of vehicles, as well as punitive damages.

Most of the class action lawsuits in the United States were transferred to the United States District Court for the Southern District of Florida and consolidated into a multidistrict class action litigation. For the nine months ended December 31, 2017, Honda has reached a settlement with the plaintiffs of the multidistrict class action litigation in the United States. Honda recognized the settlement of ¥53,739 million as selling, general and administrative expenses, which includes funds contributed to enhance airbag inflator recall activities. The final approval of the settlement from court was completed as July 31, 2018(U.S. local time).

For the class action lawsuits and civil lawsuits other than the above, Honda did not recognize a provision for loss contingencies because the conditions for a provision have not been met as of the date of this report. Therefore, it is not possible for Honda to reasonably estimate the amount and timing of potential future losses as of the date of this report because there are some uncertainties, such as the period when these lawsuits will be concluded.


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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(13) Earnings Per Share

Earnings per share attributable to owners of the parent for the nine months ended December 31, 2017 and 2018 are calculated based on the following information. There were no dilutive potential common shares outstanding for the nine months ended December 31, 2017 and 2018.

 

     2017      2018  

Profit for the period attributable to owners of the parent (millions of yen)

   ¥ 951,592      ¥ 623,339  

Weighted average number of common shares outstanding, basic (shares)

     1,797,532,277        1,765,309,719  

Basic earnings per share attributable to owners of the parent (yen)

   ¥ 529.39      ¥ 353.10  

Earnings per share attributable to owners of the parent for the three months ended December 31, 2017 and 2018 are calculated based on the following information. There were no dilutive potential common shares outstanding for the three months ended December 31, 2017 and 2018.

 

     2017      2018  

Profit for the period attributable to owners of the parent (millions of yen)

   ¥ 570,251      ¥ 168,238  

Weighted average number of common shares outstanding, basic (shares)

     1,790,411,190        1,759,562,385  

Basic earnings per share attributable to owners of the parent (yen)

   ¥ 318.50      ¥ 95.61  

(14) Dividend

(a) Dividend payout

For the nine months ended December 31, 2017

 

Resolution

   The Ordinary General Meeting of Shareholders on June 15, 2017

Type of shares

   Common shares

Total amount of dividends (millions of yen)

   43,254

Dividend per share (yen)

   24.00

Record date

   March 31, 2017

Effective date

   June 16, 2017

 

Resolution

   The Board of Directors Meeting on August 1, 2017

Type of shares

   Common shares

Total amount of dividends (millions of yen)

   43,254

Dividend per share (yen)

   24.00

Record date

   June 30, 2017

Effective date

   August 25, 2017

 

Resolution

   The Board of Directors Meeting on November 1, 2017

Type of shares

   Common shares

Total amount of dividends (millions of yen)

   43,254

Dividend per share (yen)

   24.00

Record date

   September 30, 2017

Effective date

   November 29, 2017


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20

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

For the nine months ended December 31, 2018

 

Resolution

   The Board of Directors Meeting on April 27, 2018

Type of shares

   Common shares

Total amount of dividends (millions of yen)

   48,013

Dividend per share (yen)

   27.00

Record date

   March 31, 2018

Effective date

   May 30, 2018

 

Resolution

   The Board of Directors Meeting on July 31, 2018

Type of shares

   Common shares

Total amount of dividends (millions of yen)

   47,682

Dividend per share (yen)

   27.00

Record date

   June 30, 2018

Effective date

   August 28, 2018

 

Resolution

   The Board of Directors Meeting on October 30, 2018

Type of shares

   Common shares

Total amount of dividends (millions of yen)

   49,287

Dividend per share (yen)

   28.00

Record date

   September 30, 2018

Effective date

   November 28, 2018

(b) Dividends payable of which record date was in the nine months ended December 31, 2018, effective after the period

 

Resolution

   The Board of Directors Meeting on February 1, 2019

Type of shares

   Common shares

Resource for dividend

   Retained earnings

Total amount of dividends (millions of yen)

   49,287

Dividend per share (yen)

   28.00

Record date

   December 31, 2018

Effective date

   February 28, 2019

(15) Approval of Release of Condensed Consolidated Interim Financial Statements

The release of the condensed consolidated interim financial statements was approved by Takahiro Hachigo, President and Representative Director, Chief Executive Officer and Kohei Takeuchi, Senior Managing Director and Chief Financial Officer on February 7, 2019.