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 2018

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 2, 2018, Honda Motor Co., Ltd. (the “Company”) announced its consolidated financial results for the fiscal third quarter and the fiscal nine-month period ended December 31, 2017.

Exhibit 2:

Honda Motor Co., Ltd. (the “Company”) revises its forecast for consolidated financial results for the fiscal year ending March 31, 2018 which was announced on November 1, 2017.

Exhibit 3:

Honda Motor Co., Ltd. (“the Company”) announces that the impacts of the enactment of the Tax Cuts and Jobs Act in the U.S.in its consolidated financial results for the nine months ended December 31, 2017.

Exhibit 4:

The Board of Directors of Honda Motor Co., Ltd. (the “Company”), at its meeting held on February 2, 2018, resolved to make a distribution of surplus (quarterly dividends), the record date of which is December 31, 2017, and revised the amount of the projected dividend per share of common stock for the year ending March 31, 2018.


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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 06, 2018


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February 2, 2018

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL THIRD QUARTER AND

THE FISCAL NINE-MONTH PERIOD ENDED DECEMBER 31, 2017

Tokyo, February 2, 2018 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal third quarter and the fiscal nine-month period ended December 31, 2017.

Third Quarter Results

Honda’s consolidated profit for the period attributable to owners of the parent for the fiscal third quarter ended December 31, 2017 totaled JPY 570.2 billion, an increase of 237.8% from the same period last year, due mainly to impacts of the enactment of the U.S. Tax cuts and Jobs Act. Earnings per share attributable to owners of the parent for the quarter amounted to JPY 318.50, an increase of JPY 224.83 from the corresponding period last year. One Honda American Depository Share represents one common share.

Consolidated sales revenue for the quarter amounted to JPY 3,957.1 billion, an increase of 13.0% from the same period last year, due primarily to increased revenue in all business operations.

Consolidated operating profit for the quarter amounted to JPY 284.5 billion, an increase of 37.0% from the same period last year, due primarily to an increase in sales volume and model mix, despite increased SG&A expenses.

Share of profit of investments accounted for using the equity method for the quarter amounted to JPY 54.5 billion, an increase of 11.0% from the corresponding period last year.

Consolidated profit before income taxes for the quarter totaled JPY 346.8 billion, an increase of 32.9% from the same period last year.

Nine Months Results

Honda’s consolidated profit for the period attributable to owners of the parent for the fiscal nine months ended December 31, 2017 totaled JPY 951.5 billion, an increase of 82.8% from the same period last year, due mainly to impacts of the enactment of the U.S. Tax cuts and Jobs Act. Earnings per share attributable to owners of the parent for the fiscal nine months amounted to JPY 529.39, an increase of JPY 240.53 from the same period last year.

Consolidated sales revenue for the fiscal nine months amounted to JPY 11,446.4 billion, an increase of 11.8% from the same period last year, due primarily to increased revenue in all business operations as well as favorable foreign currency translation effects.

Consolidated operating profit for the fiscal nine months amounted to JPY 706.7 billion, an increase of 0.6% from the same period last year, due primarily to an increase in sales volume and model mix and continuing cost reduction efforts, despite the loss related to the settlement of multidistrict class action litigation and reverse effect from the impact of pension plan amendments in the previous fiscal year.

 

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Share of profit of investments accounted for using the equity method for the fiscal nine months amounted to JPY 189.7 billion, an increase of 63.3% from the corresponding period last year.

Consolidated profit before income taxes for the fiscal nine months totaled JPY 924.5 billion, an increase of 12.7% from the same period last year, mainly due to increased share of profit of investments accounted for using the equity method.

 

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Consolidated Statements of Financial Position for the Fiscal Nine Months Ended December 31, 2017

Total assets increased by JPY 803.3 billion, to JPY 19,761.4 billion from March 31, 2017, mainly due to an increase in Receivables from financial services and Equipment on operating leases. Total liabilities decreased by JPY 77.1 billion, to JPY 11,311.3 billion from March 31, 2017, mainly due to a decrease in Deferred tax liabilities and Trade payables, despite an increase in Financing liabilities as well as foreign currency translation effects. Total equity increased by JPY 880.4 billion, to JPY 8,450.1 billion from March 31, 2017 due mainly to increased Retained earnings attributable to increased Profit for the period, despite a decrease attributable to purchases of Treasury stock.

Consolidated Statements of Cash Flows for the Fiscal Nine Months Year Ended December 31, 2017

Consolidated cash and cash equivalents on December 31, 2017 increased by JPY 104.5 billion from March 31, 2017, to JPY 2,210.4 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the same period of the previous fiscal year, are as follows:

Cash flows from operating activities

Net cash provided by operating activities amounted to JPY 622.6 billion for the fiscal nine months ended December 31, 2017. Cash inflows from operating activities increased by JPY 164.3 billion compared with the same period of the previous fiscal year due mainly to an increase in cash received from customers, despite increased payments for parts and raw materials.

Cash flows from investing activities

Net cash used in investing activities amounted to JPY 431.3 billion. Cash outflows from investing activities decreased by JPY 100.6 billion compared with the same period of the previous fiscal year, due mainly to a decrease in Payments for additions to property, plant and equipment.

Cash flows from financing activities

Net cash used in financing activities amounted to JPY 130.3 billion. Cash outflows from financing activities increased by JPY 219.4 billion compared with the same period of the previous fiscal year, due mainly to a decrease in proceeds from financing liabilities and purchases of treasury stock.

 

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Forecasts for the Fiscal Year Ending March 31, 2018

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2018, Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2018

 

     Yen (billions)      Changes from FY 2017  

Sales revenue

     15,200.0        +8.6

Operating profit

     775.0        -7.8

Profit before income taxes

     1,045.0        +3.8

Profit for the year

     1,070.0        +57.5

Profit for the year attributable to owners of the parent

     1,000.0        +62.2
     Yen         

Earnings per share attributable to owners of the parent

     

Basic and diluted

     557.70     

Note: The forecasts are based on the assumption that the average exchange rate for the Japanese yen to the U.S. dollar will be JPY 110 for the full year ending March 31, 2018.

The reasons for the increases or decreases in the forecasts of the operating profit, and profit before income taxes for the fiscal year ending March 31, 2018 from the previous year are as follows.

 

     Yen (billions)  

Revenue, model mix, etc.

     + 122.0  

Cost reduction, the effect of raw material cost fluctuations, etc.

     + 64.0  

SG&A expenses

     - 77.0  

R&D expenses

     - 47.0  

Currency effect

     + 10.0  

The impact of pension plan amendments

     - 84.0  

The loss related to the settlement of multidistrict class action litigation

     - 53.7  
  

 

 

 

Operating profit compared with fiscal year ended March 31, 2017

     - 65.7  
  

 

 

 

Share of profit of investments accounted for using the equity method

     + 75.2  

Finance income and finance costs

     + 28.5  
  

 

 

 

Profit before income taxes compared with fiscal year ended March 31, 2017

     + 38.0  
  

 

 

 

 

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Dividend per Share of Common Stock

Fiscal third quarter dividend is JPY 25 per share of common stock. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2018, is JPY 98 per share.

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

 

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Consolidated Financial Summary

For the three months and nine months ended December 31, 2016 and 2017

Financial Highlights

 

     Yen (millions)  
     Three months
ended
Dec. 31, 2016
     Three months
ended
Dec. 31, 2017
     Nine months
ended
Dec. 31, 2016
     Nine months
ended
Dec. 31, 2017
 

Sales revenue

     3,501,068        3,957,123        10,235,766        11,446,418  

Operating profit

     207,685        284,576        702,609        706,732  

Profit before income taxes

     260,935        346,897        819,993        924,525  

Profit for the period attributable to owners of the parent

     168,815        570,251        520,610        951,592  
     Yen  

Earnings per share attributable to owners of the parent

           

Basic and diluted

     93.67        318.50        288.86        529.39  

 

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[1] Condensed Consolidated Statements of Financial Position

 

     Yen (millions)  
     Mar. 31, 2017     Dec. 31, 2017  
Assets     

Current assets:

    

Cash and cash equivalents

     2,105,976       2,210,485  

Trade receivables

     764,026       723,955  

Receivables from financial services

     1,878,938       1,880,929  

Other financial assets

     149,427       223,960  

Inventories

     1,364,130       1,495,779  

Other current assets

     292,970       332,242  
  

 

 

   

 

 

 

Total current assets

     6,555,467       6,867,350  
  

 

 

   

 

 

 

Non-current assets:

    

Investments accounted for using the equity method

     597,262       649,563  

Receivables from financial services

     3,070,615       3,299,406  

Other financial assets

     364,612       448,435  

Equipment on operating leases

     4,104,663       4,298,630  

Property, plant and equipment

     3,200,378       3,147,554  

Intangible assets

     778,192       749,771  

Deferred tax assets

     121,509       125,529  

Other non-current assets

     165,425       175,227  
  

 

 

   

 

 

 

Total non-current assets

     12,402,656       12,894,115  
  

 

 

   

 

 

 

Total assets

     18,958,123       19,761,465  
  

 

 

   

 

 

 
Liabilities and Equity     

Current liabilities:

    

Trade payables

     1,183,344       1,082,213  

Financing liabilities

     2,786,928       3,028,423  

Accrued expenses

     417,736       395,428  

Other financial liabilities

     119,784       105,168  

Income taxes payable

     45,507       51,683  

Provisions

     348,095       272,240  

Other current liabilities

     527,448       549,919  
  

 

 

   

 

 

 

Total current liabilities

     5,428,842       5,485,074  
  

 

 

   

 

 

 

Non-current liabilities:

    

Financing liabilities

     4,022,190       4,105,310  

Other financial liabilities

     47,241       70,072  

Retirement benefit liabilities

     494,131       459,087  

Provisions

     248,935       225,679  

Deferred tax liabilities

     900,450       674,087  

Other non-current liabilities

     246,708       292,056  
  

 

 

   

 

 

 

Total non-current liabilities

     5,959,655       5,826,291  
  

 

 

   

 

 

 

Total liabilities

     11,388,497       11,311,365  
  

 

 

   

 

 

 

Equity:

    

Common stock

     86,067       86,067  

Capital surplus

     171,118       171,118  

Treasury stock

     (26,189     (113,269

Retained earnings

     6,712,894       7,511,626  

Other components of equity

     351,406       495,550  
  

 

 

   

 

 

 

Equity attributable to owners of the parent

     7,295,296       8,151,092  

Non-controlling interests

     274,330       299,008  
  

 

 

   

 

 

 

Total equity

     7,569,626       8,450,100  
  

 

 

   

 

 

 

Total liabilities and equity

     18,958,123       19,761,465  
  

 

 

   

 

 

 

 

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

Condensed Consolidated Statements of Income

For the three months ended December 31, 2016 and 2017

 

     Yen (millions)  
     Three months
ended

Dec. 31, 2016
    Three months
ended

Dec. 31, 2017
 

Sales revenue

     3,501,068       3,957,123  

Operating costs and expenses:

    

Cost of sales

     (2,736,728     (3,063,005

Selling, general and administrative

     (380,356     (422,923

Research and development

     (176,299     (186,619
  

 

 

   

 

 

 

Total operating costs and expenses

     (3,293,383     (3,672,547
  

 

 

   

 

 

 

Operating profit

         207,685           284,576  
  

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

     49,129       54,512    

Finance income and finance costs:

    

Interest income

     8,331       11,381  

Interest expense

     (2,593     (3,142

Other, net

     (1,617     (430
  

 

 

   

 

 

 

Total finance income and finance costs

     4,121       7,809  
  

 

 

   

 

 

 

Profit before income taxes

     260,935       346,897  

Income tax expense

     (74,457     242,871  
  

 

 

   

 

 

 

Profit for the period

     186,478       589,768  
  

 

 

   

 

 

 

Profit for the period attributable to:

    

Owners of the parent

     168,815       570,251  

Non-controlling interests

     17,663       19,517  
     Yen  

Earnings per share attributable to owners of the parent

    

Basic and diluted

     93.67       318.50  

 

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Condensed Consolidated Statements of Comprehensive Income

For the three months ended December 31, 2016 and 2017

 

                                                     
     Yen (millions)  
     Three months
ended

Dec. 31, 2016
     Three months
ended

Dec. 31, 2017
 

Profit for the period

     186,478        589,768  

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

         17,135            16,360  

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

     2,442        2,450    

Items that may be reclassified subsequently to profit or loss

     

Exchange differences on translating foreign operations

     588,833        18,673  

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

     25,597        7,752  
  

 

 

    

 

 

 

Total other comprehensive income, net of tax

     634,007        21,025  
  

 

 

    

 

 

 

Comprehensive income for the period

     820,485        610,793  
  

 

 

    

 

 

 

Comprehensive income for the period attributable to:

     

Owners of the parent

     778,852        587,954  

Non-controlling interests

     41,633        22,839  

 

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Condensed Consolidated Statements of Income

For the nine months ended December 31, 2016 and 2017

 

                                                     
     Yen (millions)  
     Nine months
ended

Dec. 31, 2016
    Nine months
ended

Dec. 31, 2017
 

Sales revenue

     10,235,766       11,446,418  

Operating costs and expenses:

    

Cost of sales

     (7,937,259     (8,926,648

Selling, general and administrative

     (1,126,640     (1,280,195

Research and development

     (469,258     (532,843
  

 

 

   

 

 

 

Total operating costs and expenses

     (9,533,157     (10,739,686
  

 

 

   

 

 

 

Operating profit

     702,609       706,732  
  

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

     116,212       189,723    

Finance income and finance costs:

    

Interest income

         23,139           30,194  

Interest expense

     (8,784     (9,293

Other, net

     (13,183     7,169  
  

 

 

   

 

 

 

Total finance income and finance costs

     1,172       28,070  
  

 

 

   

 

 

 

Profit before income taxes

     819,993       924,525  

Income tax expense

     (251,911     82,396  
  

 

 

   

 

 

 

Profit for the period

     568,082       1,006,921  
  

 

 

   

 

 

 

Profit for the period attributable to:

    

Owners of the parent

     520,610       951,592  

Non-controlling interests

     47,472       55,329  
     Yen  

Earnings per share attributable to owners of the parent

    

Basic and diluted

     288.86       529.39  

 

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Condensed Consolidated Statements of Comprehensive Income

For the nine months ended December 31, 2016 and 2017

 

                                                     
     Yen (millions)  
     Nine months
ended
Dec. 31, 2016
    Nine months
ended
Dec. 31, 2017
 

Profit for the period

     568,082       1,006,921  

Other comprehensive income, net of tax:

    

Items that will not be reclassified to profit or loss

    

Remeasurements of defined benefit plans

     11,561       (24,210

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

         18,042           28,417  

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

     1,643       2,352    

Items that may be reclassified subsequently to profit or loss

    

Exchange differences on translating foreign operations

     135,535       104,807  

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

     (32,088     19,033  
  

 

 

   

 

 

 

Total other comprehensive income, net of tax

     134,693       130,399  
  

 

 

   

 

 

 

Comprehensive income for the period

     702,775       1,137,320  
  

 

 

   

 

 

 

Comprehensive income for the period attributable to:

    

Owners of the parent

     661,259       1,072,640  

Non-controlling interests

     41,516       64,680  

 

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[3] Condensed Consolidated Statements of Changes in Equity

As of and for the nine months ended December 31, 2016

 

    Yen (millions)  
    Equity attributable to owners of the parent     Non-controlling
interests
    Total
equity
 
    Common
stock
    Capital
surplus
    Treasury
stock
    Retained
earnings
    Other
components
of equity
    Total      

Balance as of April 1, 2016

    86,067       171,118       (26,178     6,194,311       336,115       6,761,433       270,355       7,031,788  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income for the period

               

Profit for the period

          520,610         520,610       47,472       568,082  

Other comprehensive income, net of tax

            140,649       140,649    

 

(5,956

    134,693  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the period

          520,610       140,649       661,259       41,516       702,775  

Reclassification to retained earnings

          16,829       (16,829     —           —    

Transactions with owners and other

               

Dividends paid

          (118,950       (118,950     (34,172     (153,122

Purchases of treasury stock

        (7         (7       (7
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

        (7     (118,950       (118,957     (34,172     (153,129
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of December 31, 2016

    86,067       171,118       (26,185     6,612,800       459,935       7,303,735       277,699       7,581,434  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

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

 

 

    Yen (millions)  
    Equity attributable to owners of the parent     Non-controlling
interests
    Total
equity
 
    Common
stock
    Capital
surplus
    Treasury
stock
    Retained
earnings
    Other
components
of equity
    Total      

Balance as of April 1, 2017

    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

          (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

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

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

- 12 -


Table of Contents

[4] Consolidated Statements of Cash Flows

 

     Yen (millions)  
     Nine months
ended
Dec. 31, 2016
    Nine months
ended
Dec. 31, 2017
 

Cash flows from operating activities:

    

Profit before income taxes

     819,993       924,525  

Depreciation, amortization and impairment losses excluding equipment on operating leases

     491,994       531,230  

Share of profit of investments accounted for using the equity method

     (116,212     (189,723

Finance income and finance costs, net

     (47,547     11,628  

Interest income and interest costs from financial services, net

     (89,139     (96,331

Changes in assets and liabilities

    

Trade receivables

     108,895       57,230  

Inventories

     (57,852     (104,753

Trade payables

     (136,278     (72,579

Accrued expenses

     (34,530     (39,806

Provisions and retirement benefit liabilities

     (224,411     (79,965

Receivables from financial services

     45,959       (121,704

Equipment on operating leases

     (358,848     (136,548

Other assets and liabilities

     2,583       (64,373

Other, net

     (5,353     4,483  

Dividends received

     66,158       79,542  

Interest received

     161,616       184,581  

Interest paid

     (69,291     (79,611

Income taxes paid, net of refunds

     (99,461     (185,174
  

 

 

   

 

 

 

Net cash provided by operating activities

     458,276       622,652  

Cash flows from investing activities:

    

Payments for additions to property, plant and equipment

     (384,071     (318,457

Payments for additions to and internally developed intangible assets

     (115,128     (112,706

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

     15,585       15,089  

Payments for acquisitions of subsidiaries, net of cash and cash equivalents acquired

     (2,835     —    

Payments for acquisitions of investments accounted for using the equity method

     —         (2,450

Proceeds from sales of investments accounted for using the equity method

     6,466       —    

Payments for acquisitions of other financial assets

     (169,010     (188,995

Proceeds from sales and redemptions of other financial assets

     117,439       175,488  

Other, net

     (435     719  
  

 

 

   

 

 

 

Net cash used in investing activities

     (531,989     (431,312

Cash flows from financing activities:

    

Proceeds from short-term financing liabilities

     6,270,259       5,723,203  

Repayments of short-term financing liabilities

     (6,001,894     (5,537,683

Proceeds from long-term financing liabilities

     1,247,002       1,203,256  

Repayments of long-term financing liabilities

     (1,240,192     (1,228,275

Dividends paid to owners of the parent

     (118,950     (129,764

Dividends paid to non-controlling interests

     (32,597     (39,392

Purchases and sales of treasury stock, net

     (7     (87,080

Other, net

     (34,497     (34,630
  

 

 

   

 

 

 

Net cash provided by (used in) financing activities

     89,124       (130,365

Effect of exchange rate changes on cash and cash equivalents

     27,144       43,534  
  

 

 

   

 

 

 

Net change in cash and cash equivalents

     42,555       104,509  

Cash and cash equivalents at beginning of year

     1,757,456       2,105,976  
  

 

 

   

 

 

 

Cash and cash equivalents at end of period

     1,800,011       2,210,485  
  

 

 

   

 

 

 

 

- 13 -


Table of Contents

[5] Assumptions for Going Concern

None

[6] Notes to Consolidated Financial Statements

[A] Segment Information

Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and 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 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 (S×S) 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

1. Segment information

For the three months ended December 31, 2016

 

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

Sales revenue:

                  

External customers

     420,630        2,555,102        452,503        72,833       3,501,068        —         3,501,068  

Intersegment

     —          41,315        3,282        7,492       52,089        (52,089     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     420,630        2,596,417        455,785        80,325       3,553,157        (52,089     3,501,068  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

     41,874        129,835        42,354        (6,378     207,685        —         207,685  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

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  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

- 14 -


Table of Contents

As of and for the nine months ended December 31, 2016

 

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

Sales revenue:

                  

External customers

     1,262,410        7,395,747        1,360,378        217,231       10,235,766        —         10,235,766  

Intersegment

     —          114,181        9,751        17,580       141,512        (141,512     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     1,262,410        7,509,928        1,370,129        234,811       10,377,278        (141,512     10,235,766  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

     132,582        446,198        130,709        (6,880     702,609        —         702,609  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment assets

     1,388,175        7,547,247        9,643,394        346,414       18,925,230        (53,413     18,871,817  

Depreciation and amortization

     54,563        425,096        483,903        10,128       973,690        —         973,690  

Capital expenditures

     34,651        443,014        1,417,986        7,973       1,903,624        —         1,903,624  

 

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  

Explanatory notes:

 

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

 

2. Unallocated corporate assets, included in reconciling items, amounted to JPY 409,969 million as of December 31, 2016 and JPY 523,929 million as of December 31, 2017 respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

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

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

For the three months ended December 31, 2016

 

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

Sales revenue:

                    

External customers

     551,837        1,928,816        131,812       702,134        186,469       3,501,068        —         3,501,068  

Inter-geographic areas

     601,336        127,122        56,094       145,005        705       930,262        (930,262     —    
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     1,153,173        2,055,938        187,906       847,139        187,174       4,431,330        (930,262     3,501,068  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Operating profit (loss)

     80,383        83,771        (4,642     82,096        (762     240,846        (33,161     207,685  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

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  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

- 15 -


Table of Contents

As of and for the nine months ended December 31, 2016

 

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

Sales revenue:

                    

External customers

     1,529,395        5,638,046        443,951       2,092,797        531,577       10,235,766        —         10,235,766  

Inter-geographic areas

     1,507,016        325,940        88,046       416,916        2,114       2,340,032        (2,340,032     —    
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     3,036,411        5,963,986        531,997       2,509,713        533,691       12,575,798        (2,340,032     10,235,766  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Operating profit (loss)

     146,449        293,154        (3,291     263,699        26,990       727,001        (24,392     702,609  
  

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Assets

     4,216,681        10,908,222        623,919       2,591,532        668,010       19,008,364        (136,547     18,871,817  

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

     2,428,822        4,900,395        109,938       692,492        189,708       8,321,355        —         8,321,355  

 

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  

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

 

3. Unallocated corporate assets, included in reconciling items, amounted to JPY 409,969 million as of December 31, 2016 and JPY 523,929 million as of December 31, 2017 respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

 

- 16 -


Table of Contents

[B] Other

1. 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 have been filed against Honda. The plaintiffs have 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 regarding the multidistrict class action litigation in the United States. This settlement is subject to final court approval. Honda recognized the settlement of JPY 53,739 million as selling, general and administrative expenses, which includes funds to support airbag inflator recall efforts and such.

Except for the class action lawsuits in the United States which have been settled, other class action lawsuits and civil lawsuits have not been resolved yet. 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.

2. Impairment loss and reversal of impairment loss on investments accounted for using the equity method

For the nine months ended December 31, 2016, the Company recognized impairment losses of JPY 12,871 million on certain investments accounted for using the equity method because there is objective evidence of impairment from declines in quoted market values. The impairment losses are 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, 2017, the Company did not recognize any significant impairment losses.

In addition, for the nine months ended December 31, 2017, the Company recognized reversal of impairment losses of JPY 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 are included in share of profit of investments accounted for using the equity method in the condensed consolidated statement of income.

 

- 17 -


Table of Contents

3. Impact of the pension plan amendment on the Company’s consolidated financial position and results of operations in previous fiscal year

In August 2016, the Company and its certain subsidiaries in Japan decided, effective April 1, 2017, to extend mandatory retirement age from 60 years old to 65 years old and introduce a flexible retirement scheme that enables employees to choose retirement age between 60 years old and 65 years old, along with amendments to their defined benefit pension plans to align with the postponement of the retirement age, to fulfill diversifying needs of individual employees. The plan amendments include the revision of the benefit curve, to make a lump-sum benefit payment at the retirement age between 60 years old and 65 years old under the new plan consistent with that at the mandatory retirement age, 60 years old. In addition, one of the defined benefit pension plans is replaced by a defined contribution plan.

These plan amendments resulted in a reduction of the defined benefit obligations and recognition of the past service cost in profit or loss. Honda recognized JPY 84,024 million of past service cost in a credit to profit or loss, of which JPY 37,197 million is included in cost of sales, JPY 21,385 million is included in selling, general and administrative and JPY 25,442 million is included in research and development in the condensed consolidated statements of income for the nine months ended December 31, 2016. The defined benefit obligations and plan assets were also remeasured.

4. Impacts of the Enactment of the U.S. Tax Cuts and Jobs Act

The Tax Cuts and Jobs Act was enacted in the U.S. on December 22, 2017. Due to the Act, the federal corporate income tax rate in the U.S. applicable to the Company’s U.S. businesses was reduced from 35 percent to a blended corporate rate of 31.55 percent for the current fiscal year ending March 31, 2018 and to 21 percent from the fiscal year commencing on April 1, 2018.

Based on the reduction of the federal corporate income tax rate, the Company reevaluated deferred tax assets and liabilities in its U.S. consolidated subsidiaries. As a result, the Company has recognized impacts of the enactment of the Tax Cuts and Jobs Act, including a decrease in income tax expenses of JPY 346,129 million, in the third quarter of the fiscal year ending March 31, 2018.

 

- 18 -


Table of Contents

[Translation]

To:  

From:

  

Shareholdersof Honda Motor Co., Ltd.

HondaMotor Co., Ltd.

1-1,  Minami-Aoyama 2-chome,

Minato-ku,Tokyo, 107-8556

TakahiroHachigo

Presidentand Representative Director

   February 2, 2018

Notice Concerning Revision of Forecast for Consolidated Financial Results

for the Fiscal Year Ending March 31, 2018

Honda Motor Co., Ltd. (the “Company”) revises its forecast for consolidated financial results for the fiscal year ending March 31, 2018 which was announced on November 1, 2017.

Particulars

Revision of Forecast for Consolidated Financial Results for the Fiscal Year Ending March 31, 2018

 

     Sales revenue
(Million Yen)
     Operating profit
(Million Yen)
     Profit before
income taxes

(Million Yen)
     Profit for the
year

(Million Yen)
     Profit for the
year attributable
to owners of the
parent

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

(Yen)
 

Forecast previously announced on November 1, 2017 (A)

     15,050,000        745,000        955,000        650,000        585,000        326.26  

Forecast revision as of

February 2, 2018 (B)

     15,200,000        775,000        1,045,000        1,070,000        1,000,000        557.70  

Change (B-A)

     150,000        30,000        90,000        420,000        415,000     

Percentage change (%)

     1.0        4.0        9.4        64.6        70.9     

(Reference)

Results of the fiscal year ended March 31, 2017

     13,999,200        840,711        1,006,986        679,394        616,569        342.10  

Reason for Revision of Forecast for Consolidated Financial Results for the Fiscal Year Ending March 31, 2018 which was announced on November 1, 2017

The Company upwardly revises its sales revenue forecast, mainly due to increased unit sales as well as favorable foreign currency translation effects. The Company also upwardly revises its forecast for operating profit, mainly due to an increase in sales revenue and model mix. The Company upwardly revises its forecast for profit before income taxes, mainly due to increased share of profit of investments accounted for using the equity method. The Company also upwardly revises its forecast for profit for the year and profit for the year attributable to owners of the parent, mainly due to a decrease in income tax expenses attributable to the reduction of the federal corporate income tax rate in the U.S.


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* Basic earnings per share attributable to owners of the parent is calculated based on profit for the year attributable to owners of the parent.

 

* These forecasts for consolidated and unconsolidated financial results of the Company are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that the actual results of the Company could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in the principal markets of the Company, its consolidated subsidiaries and its affiliates accounted for by the equity-method, and fluctuation of foreign exchange rates, as well as other factors detailed from time to time.

 

* For more details, please refer to the Company’s investor relations website

(URL http://world.honda.com/investors/).


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[Translation]

February 2, 2018

To:  

From:

  

Shareholdersof Honda Motor Co., Ltd.

HondaMotor Co., Ltd. 1-1,

Minami-Aoyama2-chome,

Minato-ku,Tokyo, 107-8556

TakahiroHachigo

Presidentand Representative Director

Notice Concerning Impacts of the Enactment of the U.S. Tax Cuts and Jobs Act

Honda Motor Co., Ltd. (“the Company”) announces that the impacts of the enactment of the Tax Cuts and Jobs Act in the U.S.in its consolidated financial results for the nine months ended December 31, 2017 are as follows.

Particulars

The Tax Cuts and Jobs Act was enacted in the U.S. on December 22, 2017. Due to the Act, the federal corporate income tax rate in the U.S. applicable to the Company’s U.S. businesses was reduced from 35 percent to a blended corporate rate of 31.55 percent for the current fiscal year ending March 31, 2018 and to 21 percent from the fiscal year commencing on April 1, 2018.

Based on the reduction of the federal corporate income tax rate, the Company reevaluated deferred tax assets and liabilities in its U.S. consolidated subsidiaries. As a result, the Company has recognized impacts of the enactment of the Tax Cuts and Jobs Act, including a decrease in income tax expenses of JPY 346,129 million, in the third quarter of the fiscal year ending March 31, 2018.

For the impacts of this decrease in income tax expenses on the forecast for the consolidated financial results for the current fiscal year, please refer to the separate announcement released by the Company today entitled “Notice Concerning Revision of Forecast for Consolidated Financial Results for the Fiscal Year Ending March 31, 2018.”


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[Translation]

February 2, 2018

 

To:    Shareholders of Honda Motor Co., Ltd.
From:    Honda Motor Co., Ltd.
  

1-1, Minami-Aoyama 2-chome,

  

Minato-ku, Tokyo, 107-8556

  

Takahiro Hachigo

  

President and Representative Director

Notice of Resolution by the Board of Directors

Concerning Distribution of Surplus (Quarterly Dividends)

and Revision of Dividend Forecast for the Fiscal Year Ending March 31, 2018

The Board of Directors of Honda Motor Co., Ltd. (the “Company”), at its meeting held on February 2, 2018, resolved to make a distribution of surplus (quarterly dividends), the record date of which is December 31, 2017, and revised the amount of the projected dividend per share of common stock for the year ending March 31, 2018 as follows:

Particulars

 

1. Details of Distribution of Surplus (Quarterly Dividends)

 

     Resolution    Previous Dividends
Forecast

(Announced on
November 1, 2016)
   Dividends Paid for the
Third Quarter in Fiscal
2017

Record Date

   December 31, 2017    December 31, 2017    December 31, 2016

Dividends per Share of Common Stock (yen)

   25    24    24

Total Amount of Dividends (million yen)

   44,456       43,254

Effective Date

   February 28, 2018       February 28, 2017

Source of Funds for Dividends

   Retained Earnings       Retained Earnings


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2. Details of the Revised Dividend Payments

 

     Dividends per Share (yen)

Record Date

   End of
First
Quarter
   End of
Second
Quarter
   End of
Third
Quarter
   Fiscal
Year-end
   Total

Latest Dividend Forecast (Announced on November 1, 2017)

            24    96

Projected Dividends

            25    98

Dividends Paid in Fiscal 2018

   24    24    25      

Dividends Paid in Fiscal 2017

   22    22    24    24    92

 

3. Basis of the Distribution of Surplus

The Company considers the redistribution of profits to its shareholders to be one of its most important management issues, and makes distributions after taking into account, among others, its retained earnings for future growth and consolidated earnings performance based on a long-term perspective. The Company resolved that a third quarter dividend payment of ¥25 per share of common stock is to be paid considering its forecast for consolidated financial results for the fiscal year ending March 31, 2018. The Company also revised the amount of the projected dividend per share of common stock for the year ending March 31, 2018 that was announced on November 1, 2017.