honda corporate update - 2018 autumn · forecast: honda group unit sales fy18 results fy19 previous...
TRANSCRIPT
Honda Corporate Update - 2018 Autumn
Acura ILX (North America)
Business Status
Other Topics
Automobile Business Operations
Motorcycle Business Operations
Business Strategy
Honda Corporate Update
2030 Vision
2
Financial Highlights
70
80
90
100
110
120
130
183 203 199 178 196
177 192 182 171 267
461 280
153
501 374
4.2%
6.4%
2.9%
5.5%
6.6%
5.0%
3.4%
6.0%
5.4% 5.0%
-1%
1%
3%
5%
7%
-200
0
200
400
600
800
1,000
1,200
1,400
1,600
1,800
FY2010 2011 2012 2013 2014 2015 2016 2017 2018 2019(P)
PP & Others Finance Motorcycle Automobile O/P Margin
・Earthquake
・Thai flood
2012
USD/JPY
¥110 for
FY19
840
670
IFRS US GAAP
Profit Structure Profile over Past Decade and FY19 Forecast
・Airbag
Inflator Issue
Yen (billion)
790
503
* Forecast as of Oct 30, 2018 3
*
231
569
363
544
833 823
Motorcycles Automobiles Power Products
Unit (thousand)
6,262 6,345 6,345 5,199 5,285 5,285 19,554
20,850 20,850
± 0 ( ± 0 % )
FY19
Previous
Forecast
FY19
Revised
Forecast
Change
FY19
Previous
Forecast
FY19
Revised
Forecast
Change
FY19
Previous
Forecast
FY19
Revised
Forecast
Change
Japan 190 195 + 5 690 695 + 5 300 315 + 15
North
America325 320 - 5 1,940 1,940 - 3,055 3,055 -
Europe 245 240 - 5 175 170 - 5 1,040 1,035 - 5
Asia 18,855 18,845 - 10 2,220 2,220 - 1,535 1,545 + 10
Other
Regions1,235 1,250 + 15 260 260 - 415 395 - 20
Total 20,850 20,850 - 5,285 5,285 - 6,345 6,345 -
± 0 ( ± 0 % )
± 0 ( ± 0 % )
4
Forecast: Honda Group Unit Sales
FY18 Results
FY19 Previous Forecast
FY19 Revised Forecast
FY18 Results
FY19 Previous Forecast
FY19 Revised Forecast
FY18 Results
FY19 Previous Forecast
FY19 Revised Forecast
Motorcycles Automobiles Power Products
Unit (thousand)
12,954 13,775 13,860
+ 85 ( + 0.6 % )
3,689 3,745 3,745
6,262 6,345 6,345
± 0 ( ± 0 % )
± 0 ( ± 0 % )
FY19
Previous
Forecast
FY19
Revised
Forecast
Change
FY19
Previous
Forecast
FY19
Revised
Forecast
Change
FY19
Previous
Forecast
FY19
Revised
Forecast
Change
Japan 190 195 + 5 620 625 + 5 300 315 + 15
North
America325 320 - 5 1,940 1,940 - 3,055 3,055 -
Europe 245 240 - 5 175 170 - 5 1,040 1,035 - 5
Asia 11,780 11,855 + 75 750 750 - 1,535 1,545 + 10
Other
Regions1,235 1,250 + 15 260 260 - 415 395 - 20
Total 13,775 13,860 + 85 3,745 3,745 - 6,345 6,345 - 5
Forecast: Consolidated Unit Sales
FY18 Results
FY19 Previous Forecast
FY19 Revised Forecast
FY18 Results
FY19 Previous Forecast
FY19 Revised Forecast
FY18 Results
FY19 Previous Forecast
FY19 Revised Forecast
FY18 FY19
Results Forecast amount %
Sales revenue 15,361.1 15,800.0 + 438.8 + 2.9% + 350.0
Operating profit 833.5 790.0 - 43.5 - 5.2% + 80.0
Operating margin 5.4% 5.0% - 0.4pt + 0.4pt
Share of profit of investments
accounted for using the equity method247.6 215.0 - 32.6 - 13.2% -
Profit before income taxes 1,114.9 1,010.0 - 104.9 - 9.4% + 80.0
Profit for the year attributable
to owners of the parent1,059.3 675.0 - 384.3 - 36.3% + 60.0
Earnings per share attributable
to owners of the parent (Yen)590.79 382.66 - 208.13 + 34.10
Market average rates (Yen)
110( 1H 110 / 2H 110 )
Yen (billion)
Change Change from
previous
forecast
U.S. Dollar 111 Yen up by 1 yen Yen down by 3 yen
6
FY19 Financial Forecast (Consolidated)
833.5 790.0
+ 169.5 - 40.0
+ 39.0 735.5
Operating margin
5.4%
- 137.0
- 75.0
830.0
*1
Operating Profit - 43.5 ( - 5.2 % )
・Revenue, model mix, etc.
・Cost Reduction, etc. (excl. Raw material price increase)
・SG&A
・R&D
+ 86.5
+ 148.0
- 33.0
- 32.0
7
*1
FY19 Forecast: Change in Operating Profit
Real-term
Currency
Effects
Litigation
Settlement
Etc.
in FY18
Operating margin
4.9%
Operating margin
5.2%
Operating margin
5.0%
Raw material
price
increase
Real-term
profit change
Yen (billion)
FY18
Results
FY19
Forecast
Impact of
Mexico plant
flooding
(Including decrease
of unit sales
due to shutdown)
Litigation settlement and restitution income related to airbag inflator in FY18
【Purpose for the change】
Further improving the Company’s capital strategy
【Points of the change】
Goal: to maintain a
shareholders’ return ratio of
approximately 30%
Goal: to realize a return ratio
alone of approximately 30%
Acquisition of the Company’s
own shares at a timing that it
deems optimal
With respect to the redistribution of profits to its shareholders, the
Company’s basic policy is to determine such distributions after taking into
account, among others, its retained earnings for future growth and
consolidated earnings performance based on a long-term perspective.
Change in the company’s shareholders’ return policy
8
Increase / Decrease
f rom FY18
1st
Quarter End 24 27 + 3 -
2nd
Quarter End 24 28 + 4 + 1
3rd
Quarter End 25 ( 28 ) ( + 3 ) ( + 1 )
4th
Quarter End 27 ( 28 ) ( + 1 ) ( + 1 )
Fiscal Year 100 ( 111 ) ( + 11 ) ( + 3 )
Dividend per Share FY18FY19
(Expectation)
Change from
previous forecast
(Yen)
9
Dividend
10
Recent Shareholders’ Return Summary Trend
FY11
Actual
FY12
Actual
FY13
Actual
FY14
Actual
FY15
Actual
FY16
Actual
FY17
Actual
FY18
Actual
FY19 (Expectation)
Dividend
(Yen)
1st Quarter End 12 15 19 20 22 22 22 24 27
2ndQuarter End 12 15 19 20 22 22 22 24 28
3rd Quarter End 15 15 19 20 22 22 24 25 (28)
4th Quarter End 15 15 19 22 22 22 24 27 (28)
Fiscal Year 54 60 76 82 88 88 92 100 (111)
Dividend ratio* 18.3% 51.1% 37.3% 25.7% 32.2% 46.0% 26.9% 25.1% (29.0%)
Acquisition of the
Company’s Own Shares 25.0 0 0 0 0 0 0 87.0 62.1
97.4 108.1 137.0 147.8 158.6 158.6 165.8 179.0
195.5 25.0
87.1 62.1
122.4 108.1
137.0 147.8
158.6 158.6 165.8
18.3% 51.1%
37.3% 25.7% 32.2%
46.0%
26.9% 25.1% 29.0%
0
100
200
300
FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19E
257.6
**
266.1
** incl. impact of revaluation of DTA/DTL: 16.9%
**
(billion)
Acquisition of the
Company’s Own
Shares
Total
Dividend Dividend Ratio
(billion Yen)
* US GAAP up to FY15 , IFRS from FY16
Business Status
Other Topics
Automobile Business Operations
Motorcycle Business Operations
Business Strategy
Honda Corporate Update
2030 Vision
11
Financial Highlights
12
Further enhance inter-regional coordination and collaboration and
increase the efficiency of our operations from a global perspective.
Inter-regional coordination and collaboration
Accord 10% Civic
16%
CR-V 14%
Vezel 10%
Fit 8%
Derivative models
Other
Global Models continue to be widely popular representing
approx. 70% of CY2017 global Honda unit sales
Global models: Accord, Civic, CR-V, Vezel/ HR-V and Fit/ Jazz
13
Accord
- All-new Accord launched in October 2017 in N.A. to be
followed by other markets
Civic
- Underwent full model change in 2015 in N.A. and
successfully launched in global market
- Shares commonized platform between sedan, coupe
and hatchback
CR-V
- All-new CR-V underwent full model change in 2016 in N.A.
and global launch to be completed by 2018.
Vezel/ HR-V
- Grew into strong model and became one of the global
models since its launch in 2013
Accord
Civic
CR-V
Vezel/ HR-V
Fit/ Jazz
*Derivative models:
City/Grace, Greiz and XR-V
Sharing of down-sized
turbocharged engine
at some trim levels
Focus on
platform and parts
commonality
Focus on
platform and parts
commonality
5.3mil
CY2017
Global models: Direction of Model Development
2013 2014 2015 2016 2017
CR-V
HR-V
Fit
Global Operation Reform
• Concurrent development
in all six regions
• Adoption of locally
optimized design
• Increase commonality of
platform and parts
(Civic, CR-V and Accord)
Further enhance electrification, autonomous
driving and connectivity technologies.
Spearhead industry effort to realize
a carbon-free and collision-free
mobile society.
14
Accord
• Adopt Lead-Country Introduction
Strategy (Clarification of which region is responsible for
model development leadership and increase
model development efficiency.)
• Introduction of modular strategies
• Introduce advanced platforms to
accommodate electrification of
powertrains
Civic
November
April
March
April
August
Civic
Sedan CY2015 CY2016 CY2017 CY2018 CY2019
North
America
ASIA
China
Brazil
Europe
Japan
Global Model Introductions
September
CR-V
(PE) CY2015 CY2016 CY2017 CY2018 CY2019
North
America
ASIA
Brazil
China
Europe
Japan
April
June
July
September
November
August
Civic Sedan
CR-V
15
16
Regional Models
Introduction of regional models has also been expanding in each region.
China: Brand differentiation between two Joint Ventures
North America:
Light Truck models
Japan: Mini-vehicles Asia: Meet demand in each
country with affordable models
Crider UR-V
Avancier XR-V
Odyssey
Pilot
Ridgeline
BR-V N-Box
N-One N-WGN
N-Box +
GAC Dongfeng
Amaze
Mobilio
Brio
China
Europe
Capacity increase to 5.7 mil Establish stable production structure leveraging regional capacity + mutual parts/model sharing
North America
South America
Asia
Japan
1.06 mil
<Export>
Global Models
& Electrified models 1.92 mil
200,000
Primarily Civic 5D
production
150,000
1.13 mil
<Export>
Acura, L/T models,
Accord & CR-V
930,000
<Export>
• Strengthen mutual parts/model
sharing within Asia
• Export to Africa
<Export>
Leverage local cost benefit for
next markets (Africa)
Middle East and Africa
Jazz
Electrified models
CR-V
Accord &
L/T models
Acura
10-20% for Other regions
80-90% for Local markets
Total Capacity
approx. 5.4 mil units (Since April 2017)
City
■ Utilization Image
Civic 5D
1,000
CR-V, HR-V Civic, CR-V
Flexible Global Production Infrastructure
(Units)
Clarity Series
17
Civic 5D
Mutually Complementary System for our Global Operations
この様に、6極体制を「地域の協調と連携」へと進化させ、グローバルでの競争力を、強化して行きます。 0606八郷さんスピーチ As these examples demonstrate, we
will advance our six-region global
operation structure through inter-
regional cooperation and coordination.
Advance our six-region global operation structure
through inter-regional cooperation and coordination
• Flexible production system complementary production allocation between regions
• Supply Civic hatchback from the UK to North America and Japan
• WR-V was developed mainly for South America but is now also sold in Asia.
18
1,066 1,066 1,066 816
1,923 1,923 1,923 1,923
200 200 200 200
1,080 930 930 930
1,080 +50
1,080 +50
1,200 +50
1,200 +50
151 151 151
151
Mar '16 Apr '17 Plan '19 Plan '22as of
Japan
North
America
Europe
Asia
China
Other
-150 5,550 5,400
(Export only)
Global Production Capacity
(Export only)
5,270
Thailand
-150
FY2017
Unit
(thousand)
19
China
Dongfeng
+120
Plan
5,520 +120 -250
Japan
Saitama
-250
Brazil
Sumare
-120
Itirapina
+120
Plan
To be launched
Automobile New Model Introductions (main models only)
* Please note that “To be launched” models reflect the current plan and is subject to change.
Also, photos are from currently available sources and are not actual specification models.
Acura RDX: N.A.
Mar Apr May Jun Jul Aug Sep
Amaze: India
20
Oct
Already Launched in 2018
Nov Dec
Inspire: China
Insight: N.A.
N-VAN: Japan
Clarity PHEV: Japan
Everus VE-1: China
(2018)
Automobile Operations by Regions
11,588 12,777
14,491 15,600
16,522 17,479 17,550 17,230
0
5,000
10,000
15,000
20,000
CY10 11 12 13 14 15 16 17
Passenger Cars
Light Trucks
1,259 1,147
1,423 1,525 1,541 1,587 1,638 1,641
0
500
1,000
1,500
2,000
CY10 11 12 13 14 15 16 17
AcuraHonda Passenger CarsHonda Light Trucks
4,601 4,753 5,211
5,692 5,297
4,937 5,077 5,195
0
2,500
5,000
7,500
FY11 12 13 14 15 16 17 18
Registered vehicles
Mini vehicles
608 601
717
848 788
704 711 725
0
250
500
750
1,000
FY'11 12 13 14 15 16 17 18
Registered vehicles
Mini vehicles
21
<Industry>
<Honda>
United States Japan <Industry>
<Honda>
Unit (thousands)
Source: Autodata
Source: Honda
Source: JAMA
Source: Honda
Increase production capacity of light truck
models to meet industry demand
Improve capacity utilization through
exporting global models
CR-V
RDX
■ Production Allocation
Indiana
Ohio East
Liberty
Plant
2017 2016
CR-V
MDX
Pilot
Shift
Civic
MDX
Global
Source Civic Export to N.A.
Alabama
Pilot
Global Source
Civic
Ridgeline Odyssey
Odyssey
Ridgeline
Alabama
Production
Plant
■ As of the end of 2017
Indiana
CR-V
Civic
Mexico El Salto
CR-V
HR-V
Shift
Ohio(East Liberty)
RDX
CR-V
MDX
Model Allocation: North America
22
Split
Indiana
RDX
■ Production Allocation
Indiana
Ohio East
Liberty
Plant
2019 2018
CR-V
Civic
Production
Plant
CR-V Civic
CR-V
MDX
Model Allocation: North America
MDX
Accord Ohio
Marysville
Plant
CR-V
CR-V
Insight Brand-New
Insight
Accord
Ohio East
Liberty Marysville
CR-V
RDX
TLX / ILX
Canada Ontario
Civic
CR-V
TLX
23
652 622 599
757 793
1,010
1,256
1,458
0
500
1,000
1,500
CY10 11 12 13 14 15 16 17
Acura SUV
MPV Sedan
※2008-2014 Wholesale
2015-2016 Retail
Automobile Operations by Regions
24
China
<Honda>
13,757 14,473 15,495
17,929 19,701
21,146
24,378 24,719
0
10,000
20,000
30,000
CY10 11 12 13 14 15 16 17
Minivan SUV
MPV Sedan
Unit (thousands)
(excluding commercial vehicles) <Industry>
Source: Honda
Source: Honda
Further expand sister model strategy.
<Industry>
<Honda>
Asia
4,493 4,796
5,696 5,748 5,477 5,464 5,478 5,965
0
4,000
8,000
CY10 11 12 13 14 15 16 17
Malaysia ThailandIndonesia PhilippinesIndia
297
227
356
474 524
587 578 629
0
250
500
750
CY10 11 12 13 14 15 16 17
Malaysia ThailandIndonesia PhilippinesIndia
Source: Honda
Source: Honda
(Five main markets in Asia)
* India: excluding commercial vehicles and pickups
Introduce new models to meet specific
market needs in each Asian market.
Regional model introduction and sales growth in Asia
Sedan H/B MPV SUV
D
C
B
A
Accord
CR-V
Odyssey
Civic
HR-V
StepWGN
City Fit/Jazz
BR-V Mobilio
Amaze
Freed
WR-V
Brio
Industry demand by vehicle segment Honda’s sales models in CY2018
Amaze: India Brio RS: Indonesia
Honda has introduced variety of low-segment models in Asian market past several years,
which lead to sales growth and profit increase at Asian segment.
Also, Honda has announced re-introduction of Civic and CR-V in Indian market.
* Not all the vehicles are sold at all of Asian countries
Introduced in Asian market as Regional models
IHS(Hondaが使用するマーケット調査会社)による定義 Amaze: A seg Brio: A seg Mobilio: B seg BR-V: B seg WR-V: B seg また、BrioをRSとSatyaに分けている理由があれば問題ないが、もしなければ まとめてBrioでよいのではとおっしゃっておりました。
Sedan(4D/5D) SUV MPV
D
GAC
Dongfeng
C
GAC
Dongfeng
B
GAC
Dongfeng
By utilizing common platforms and strengthening local procurement and
R&D functions, successive launch of cost competitive models being realized.
Jade Crider
Odyssey
Spirior
Gienia
Segment
Fit City
Vezel
XR-V
CR-V
(July 2017)
Elysion
Greiz
UR-V
(Mar 2017)
Civic
Avancier
Regional Models: China
26
Two joint ventures
offer different model types
consistent with their
respective brand image
Accord
(May 2018)
Inspire
(Oct 2018)
Everus
VE-1
New BEV
ENVIX Concept
(2019)
Automobile Operations by Regions
27
Brazil
<Honda>
3,329 3,426 3,634 3,580
3,333
2,481
1,989 2,176
0
2,500
5,000
CY10 11 12 13 14 15 16 17
126
93
135 139 138
153
123 131
0
100
200
CY10 11 12 13 14 15 16 17
Unit (thousands)
<Industry>
Source: Honda
Source: ANFAVEA
(Main market in Other Region)
* excluding trucks
Improve Forex toughness by increasing local
procurement and localization of development.
<Industry>
<Honda>
Europe (EU+EFTA)
13,743 13,542
12,452 12,240 12,913
14,095 15,132
15,632
0
5,000
10,000
15,000
20,000
CY10 11 12 13 14 15 16 17
187
150 141 140 133 132 138 120
0
100
200
300
400
CY10 11 12 13 14 15 16 17
(excluding commercial vehicles)
(EU and EFTA)
Source: ACEA / Honda
Source: ACEA / Honda
U.K. has been designated to serve as
global supply base of the Civic Series.
Roadmap for Environmental Technologies
2010 2020 2030
DI engine
CVT / DCT
Turbo engine
2000
(CO
2(g
/km
)
0
Global expansion
Global expansion
Technologies to
increase electrical
efficiency
Technologies to
increase thermal
efficiency
ZERO emissions technology
28
2015
Clarity BEV
(2017)
Clarity PHEV
(2017)
Clarity Fuel Cell
(2016)
Accord PHEV
(2013)
FCX Clarity
(2008) FCX
(2002)
Strive to electrify two-thirds of all vehicles we sell globally by 2030
CR-V HEV
(2017)
VE-1@China
CY2018
Clarity Plug-in Hybrid@Japan
CY2019
Urban EV @Europe
CY2020
Urban EV @Japan
NEW FCV
FCV
CR-V Hybrid
@Japan, Europe
Insight Hybrid@NA
ACCORD Hybrid@NA
CDX Hybrid@China
29
Honda’s Approach to Automobile Electrification
Leverage our strengths
Reinforce organization
・Optimize the technologies and experiences cultivated in HEV
development for electrification expansion.
Electric motors ・Established JV with Hitachi AMS for development, manufacture and
sale of Honda’s state-of-the-art electric motors to combine our compact
high-power technology with their mass-production expertise.
×
We expect that two-thirds of global automobile unit sales will be
electrified by 2030.
Electrification = HEV + PHEV + BEV + FCV
Cooperative control
Battery management
Key technologies we will focus on for Electrification
・Maximize cooperative control systems to fully extract and utilize
the performance of the powertrain and related devices.
・Established “Electric Vehicle Development Division” which will oversee
comprehensive vehicle development, including the powertrain
and chassis, in order to further increase development speed.
・Maximize energy management performance and enhance heat
management technologies to extend battery performance.
HEV/PHEV Development Based on 2 Motor i-MMD Hybrid Technology
30
Charge
1.5-2.0L
Atkinson-cycle
DOHC i-VTEC
Engine
Drive Motor
Generation
Motor
Engine-
linked
Clutch
Power
Control Unit
(PCU)
Front Unit
• Engine
• 2 Motors (Electric CVT) • Electric-servo
Brakes
High-power
Lithium-Ion
Battery (1.3
kWh)
DC-DC
Converter
• PCU
Rear Unit
• IPU (Intelligent
Power Unit)
PHEV HEV
Front Unit
• Engine
• 2 Motors (Electric CVT) • Electric-servo
Brakes
• PCU
Rear Unit
• IPU (Intelligent
Power Unit)
High-power
Lithium-Ion
Battery
(6.7 -17kWh)
On-board
Charger
DC-DC
Converter
Battery
Controller
• Charge lid
or
System
overview
Component
devices
+ +
Selectable
drive
modes
Lithium-Ion
Battery
<Drive mode selection>
EV Drive available,
not just Hybrid Drive
and Plug-in Drive
Apply built up technology
and experience to future
electric vehicle development
Achieved energy/output
balance ideal for PHEVs
Left: for PHEVs Right: for HEVs
<Two-motor HEV technology>
Far more fuel-efficient than
previous HEVs
<System /component devices>
Many component devices shared
between HEVs and PHEVs
+
Competitive advantage in
development and sales
• Maintain competitive advantage by developing and selling HEVs and PHEVs with many devices in
common, based on 2 motor i-MMD hybrid technology offering both high driving performance and fuel
efficiency.
• Apply the technology and experience gained through these vehicles to future electric vehicle
development including EVs.
<United States> 2016: Launch of Clarity Fuel Cell
2017: Launch of Clarity Electric / Clarity PHEV
Expand the use of innovative two-motor hybrid powertrain
from passenger cars to light truck lineup in the future
<China> 2018: Launch of Everus VE-1 at GAC Honda
2019: Brand-new BEV will be launched at Dongfeng Honda
Developing the product respond to customer needs by
fully utilizing the R&D capability and resources of the
two JVs and Honda Motor China Technology
<Europe> 2017: Introduction of electrified technologies including Hybrid to all
of the new models (Announced at International Motor Show Germany)
2019: Launch of Honda Urban EV Concept based BEV
2025: Two-thirds of automobile unit sales will be electrified (5 years earlier than global plan) 31
Honda’s Approach to Automobile Electrification
Urban EV Concept
Everus VE-1
Clarity Fuel Cell
Toward realization of a collision-free mobile society
Expanding adoption of Honda SENSING
Japan: Make Honda SENSEING standard equipment on all new models to be introduced
North America/ China/ Europe/ Other regions: Expanding application to all-new models
* For Acura vehicles, called “Acura Watch”
32
- Strive to realize automated lane-changing function which enables the vehicle to drive in
multiple lanes without any command from the driver on highways in 2020
- Strive to achieve the technological establishment of “level 4” automated driving for use in
personal cars by around 2025
Automated Driving Roadmap
✔
✔
33
34
Honda’s approach to the new business environment
SenseTime
Cruise/General Motors
Waymo
Softbank
(Emotion Engine)
Kyoto University
Boston University
(Information Security)
Softbank
(5G Mobile
Communication System)
Alibaba
(Honda CONNECT)
Reachstar (China)
Grab (Asia)
- Motorcycles
Hitachi AMS
(EV Motor)
Neusoft(China EV)
General Motors
(EV Battery, FC Stack)
R&D Center X
Honda Xcelerator
- Global expansion
Electrification Artificial
Intelligence
Car Sharing
New Organizational Structure
Autonomous Driving
Connectivity
Business Status
Other Topics
Automobile Business Operations
Motorcycle Business Operations
Business Strategy
Honda Corporate Update
2030 Vision
35
Financial Highlights
Overview of Motorcycle Business
36
15,061 15,494 17,008 17,592 17,055 17,661
19,554 20,850
5,000
10,000
15,000
20,000
FY2012 2013 2014 2015 2016 2017 2018 2019(P)
143 110
177 192 182 171
267
10.6%
8.2%
10.5% 10.4% 10.1% 9.9%
13.1%
0
100
200
300
FY2012 2013 2014 2015 2016 2017 2018
*Operating profit and margin, and Unit sales until FY13 are based on US GAAP while FY14 and after are based on IFRS
Honda M/C Business = High Profitability + Stability + Growth Potential
Yen
(billion)
Unit (thousand) Honda Global Unit Sales
Operating Profit and Margin
グル台(卸売)を
転記
2011年はHero Hondaを含めており、18m台と多いので、見通し入れて8年にした
(本来は10年と考える)
Indonesia
Malaysia
Thailand
Vietnam India
Pakistan China
Japan
Bangladesh
Brazil
Argentine
Peru
Nigeria
Kenya
Italy U.S.A
(ATV, S×S) Mexico
Philippines
28%
India
19.2 mil
72%
Vietnam
3.3 mil
75%
Indonesia
5.9 mil
82%
Brazil
0.8 mil
80%
Thailand
1.8 mil
21%
U.S.A (MC+ATV)
0.7 mil
44%
0.4 mil
16% Europe
1.1 mil
Motorcycle production
at 35 plants in 21 countries
Annual Production Capacity in India
6.4mil in 2017 7.0mil in 2020
*Market share excluding 50cc
Motorcycle Market Size and Honda Share (CY2017)
37
Thailand
Vietnam
Indonesia
India
Number of motorcycles units in operation
Population
1,339
264
96
69 40%
33%
25%
8%
Significant growth expected
Motorcycle Market Penetration in Asia (millions)
Source: Honda & IMF
http://www.imf.org/e
xternal/ns/cs.aspx?id
=28 より直近の実
績値を反映(2016/3/1)
Penetrationのグラフ
を更新する際は積み上げグラフになっているので注意するこ
と!
人口から普及台数を引き算した数字をインプットしないと%のスケールがおかしく
なる!
0.2mil
Growth in Motorcycle Popularity
Next Markets Growing Markets Mature Markets
1,000
2,000
3,000
4,000
(USD)
India 19.2 mil
Indonesia 5.9mil
Thailand
Vietnam
Pakistan
Philippines
Bangladesh
Myanmar
GDP per capita 1.8mil
3.3mil
(CY2017)
Kenya
Nigeria
38
GDPは2016の数字 (World Bankで確認)
人口はUNより
Source: Honda & United Nations
Note: penetration rate is as of 2017
94期~
広報QAから
ミャンマーやパキスタンなどが
なくなったため、
パキスタンから
左の国の数字を
削除した
記:18年5月14日
18%
82%
In CY2011
33%
67%
In CY2017
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
50%
CY2010 2011 2012 2013 2014 2015 2016 2017
Motorcycle Market Share Trend in India
■ Scooter Unit Sales of Honda / Competitors
and Honda Share in Scooter Market
SC SC
MC MC
■ Fast Growing Segment
Scooter / Motorcycle Sales Ratio (Industry)
0%
10%
20%
30%
40%
50%
60%
70%
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
CY2010 2011 2012 2013 2014 2015 2016 2017
Competitors (Unit)
Honda (Unit)
Honda Share(%)
Honda
Honda is now No.2 in market share.
India
Company C
Company A
Company B
Company D
(Wholesale)
39
Hero Honda
1.6 1.6 1.6 1.6 1.6
1.2 1.2 1.2 1.2 1.2
1.2 1.8 1.8
2.4 2.4
1.2 1.2
1.8
CY2013 2015 2016 2017 2020
1st
2nd
3rd 4.0mil
4.6mil
7.0mil
5.8mil 4th
Manesar
Rajasthan
Karnataka
Gujarat
3rd
2nd
4th
1st
Product Line-up
110cc AT-Scooter
Activa
110cc AT-Scooter
Dio
110cc Motorcycle
Dream Yuga
125cc Motorcycle
CB Shine
India Motorcycle Operations
6.4mil
40
Announced the expansion of annual production
capacity to 7.0 mil by 2020.
Capacity Expansion
41
Electrification in Motorcycle and Mobile Battery
Battery Stations
EV Motorcycle Introduce PCX ELECTRIC / PCX HYBRID in Japan (2018).
For future expansion of electric motorcycles/scooters: - Honda and Panasonic to Begin Research Experiment on Battery Sharing Using
Detachable Mobile Batteries and Electric Motorcycles in Indonesia
- Utilizing electric commuters, which feature a detachable mobile battery is under
consideration (in collaboration with the Japan Post Co., Ltd.)
- E-KIZUNA project with Saitama-city and Yamaha Motor Co., Ltd. is conducting an
experiment involving electric motorcycles and replacement of batteries. EV
motorcycle sharing scheme also under consideration.
PCX ELECTRIC Honda Mobile
Power Pack Honda Mobile Power Pack Exchanger
写真出所
左半分・・・Media
Web(TMS)
右半分・・・環境安全 加藤さん撮影(CEATEC)
Business Status
Other Topics
Automobile Business Operations
Motorcycle Business Operations
Business Strategy
Honda Corporate Update
2030 Vision
42
Financial Highlights
43
2030 Vision
44
2030 Vision
- Focus on three areas: Mobility, Robotics and Energy
- Strive to further expand the joy of people by offering products and services
- Strive to become No.1 in the areas of the environment and safety
Business Status
Other Topics
Automobile Business Operations
Motorcycle Business Operations
Business Strategy
Honda Corporate Update
2030 Vision
45
Financial Highlights
InternalOutside
DirectorsTotal
Female
Directors
Directors
(excluding Audit and Supervisory
Committee Members)
7 2 9 1
Directors
(serving as Audit and Supervisory
Committee Members)
2 3 5 1
Total 9 5 14 2
The Company with Audit and Supervisory Committee
- For faster decision making, transfer of authority to Executive Council from Board of Directors
to resolve most matters
- Board of Directors will focus more on discussions of mid to long term business strategies,
as well as strengthening of oversight function
- Introduced a new stock-based remuneration system which is linked with the Company’s
financial performance over the medium to long term period 46
2019年3月期に「取締役等の中長期での企業価値の持続的な向上に対する貢献意識をより高めるとともに、株主の皆様との利益共有を図ることを目的」として、取締役等に対し、中長期の業績と連動した株式報酬制度を新たに導入いたしました。 In the fiscal year ended March 31, 2019, Honda introduced a new stock-based remuneration system for Directors, etc., which is linked with the Company’s financial performance over the medium to long term, in order to further enhance the motivation of Directors, etc. for contributing to the sustainable growth of corporate value over the medium to long term, and to promote sharing of interests between the Directors, etc. and shareholders. Internal
Outside
DirectorsTotal
Directors
(excluding Audit and Supervisory Committee Members)7 2 9
Directors
(serving as Audit and Supervisory Committee Members)2 3 5
Total 9 5 14
External Evaluation on Honda’s Stakeholder Engagement
47
In October 2017, CDP released the results of a survey on climate
change initiatives and reduction of GHG emissions for 5,000
major companies worldwide.
Honda received an A- rating, a score at the leadership level, in
recognition of activities deemed to be best practices in
environmental management in the CDP Japan 500 Climate
Change Report 2017, one of those categories.
CDP is an international NPO that provides a global system for
measuring, disclosing, managing and sharing important
environmental information from companies and cities.
Company initiatives in environmental challenges are evaluated in
the four stages of information disclosure, awareness,
management and leadership.
Securing an A- on the CDP Japan 500 Climate
Change Report 2017
Honda was selected for the third year running with a Bronze Class
rating in the Automobiles sector of the Sustainability Award 2018
issued by Switzerland-based RobecoSAM. RobecoSAM
evaluates sustainability of approximately 2,500 companies
worldwide in terms of economic, environmental and social criteria.
Companies deemed to be particularly outstanding in each sector
are rated in categories of Gold Class, Silver Class and Bronze
Class each year.
Selected for the Third Straight Year with a Bronze
Class Rating in the RobecoSAM Sustainability Index
In September 2017, Honda was selected for the first time as a
component of the Dow Jones Sustainability World Index after
being ranked fifth in the global Automobiles sector in the annual
review of the Dow Jones Sustainability Indices (DJSI), one of the
key benchmarks for socially responsible investing. At the same
time, the Company was selected for the third consecutive year as
a component of the Dow Jones Sustainability Asia/Pacific Index.
The DJSI are investment indices run and offered cooperatively by
U.S.-based S&P Dow Jones Indices and Switzerland-based
RobecoSAM. The sustainability of the world’s leading companies
are evaluated from three perspectives in terms of economic,
environmental and social criteria and select companies that
demonstrate overall excellence for inclusion in the indices.
Selected to the Dow Jones Sustainability World
Index
Business Status
Other Topics
Automobile Business Operations
Motorcycle Business Operations
Business Strategy
Honda Corporate Update
2030 Vision
48
Financial Highlights
Unit (thousand)
FY18 FY19Honda Group Unit Sales
Consolidated Unit Sales
01002003004005006007008009001,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,0002,1002,2002,3002,4002,5002,6002,7002,8002,9003,0003,1003,2003,3003,4003,5003,6003,7003,8003,9004,0004,1004,2004,3004,4004,5004,6004,7004,8004,9005,0005,1005,2005,3005,4005,5005,6005,7005,8005,9006,000
0100200300400500600700800900
1,0001,1001,2001,3001,4001,5001,6001,700
0100200300400500600700800900
1,0001,1001,2001,3001,4001,5001,6001,700
01002003004005006007008009001,0001,1001,2001,3001,4001,5001,6001,7001,8001,9002,0002,1002,2002,3002,4002,5002,6002,7002,8002,9003,0003,1003,2003,3003,4003,5003,6003,7003,8003,9004,0004,1004,2004,3004,4004,500
0
100
200
300
400
500
600
700
800
900
1,000
1,100
1,200
1,300
0100200300400500600700800900
1,0001,1001,2001,3001,4001,5001,6001,700
5,238 5,315 1,292 1,246 1,258 1,262
3,446 3,533 907 875
1,258 1,262
Honda Group Unit Sales
・Increase in motorcycle unit sales due mainly to sales growth in Indonesia, Vietnam and Brazil
・Decrease in automobile unit sales due mainly to sales decline in North America and China
despite a growth in sales in Japan
FY18 FY19 Change
Motorcycles 5,238 5,315 + 1.5%
Automobiles 1,292 1,246 - 3.6%
Power Products 1,258 1,262 + 0.3%
FY18 FY19 Change
Motorcycles 3,446 3,533 + 2.5%
Automobiles 907 875 - 3.5%
Power Products 1,258 1,262 + 0.3%
Honda Group
Unit Sales
2Q Results (3 Months)
Consolidated
Unit Sales
2Q Results (3 Months)
(thousand)
(thousand)
49
FY19 2nd Quarter Unit Sales
Motorcycles Automobiles Power Products
Motorcycles Automobiles Power Products
Operating Margin
FY18FY19
7.3%
4.1%
7.2%
3.2%
7.4%
5.6%
0%
2%
4%
6%
8%
10%
第1四半期 第2四半期 第3四半期 第4四半期
FY18 FY19 Change
Sales revenue 3,776.1 3,841.7 + 1.7%
Operating profit 152.9 214.4 + 40.2%
Operating margin 4.1% 5.6% + 1.5pt
Share of profit of investments
accounted for using the equity method 82.2 63.9 - 22.3%
Profit before income taxes 242.6 283.0 + 16.7%
Profit for the period attributable
to owners of the parent 174.0 210.7 + 21.1%
Earnings per share attributable
to owners of the parent (Yen) 96.55 119.66 + 23.11
Market average rates (Yen)
U.S. Dollar 111 111 Yen down by 0 y en
Operating Profit Yen (billion)
Financial Results
Yen (billion)
2Q Results (3 Months)
269.2
152.9
284.5
126.8
299.3
214.4
0
100
200
300
第1四半期 第2四半期 第3四半期 第4四半期
FY18
FY19
1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Financial Summary
Sales revenue increased by 1.7% primarily
due to an increase in sales revenue in
financial services and motorcycle business
operations.
Operating profit increased by 40.2% due
primarily to the positive impact from
revenue and model mix and
the multi-district class action litigation
settlement in the same period last year.
50
(excl. litigation
settlement 5.5%)
FY19 2nd Quarter Financial Results (Consolidated)
4,699 5,238 4,870 4,747
5,352 5,315
0
1,000
2,000
3,000
4,000
5,000
6,000
7,000
+ 77 ( + 1.5 % )
<Asia>
・Increased sales in Indonesia and Vietnam
<Other Regions>
・Increased sales in Brazil
1Q 2Q 3Q 4Q 1Q 2Q
FY19
Japan 42 42 42 41 49 55
North
America80 83 69 81 72 78
Europe 81 53 39 61 80 61
Asia 4,219 4,804 4,437 4,260 4,840 4,824
Other
Regions277 256 283 304 311 297
Total 4,699 5,238 4,870 4,747 5,352 5,315
FY18
PCX
(Indonesia)
51
Unit (thousand)
Motorcycles - Honda Group Unit Sales (Motorcycles, All-Terrain Vehicles, Side-by-Sides etc.)
1,267 1,292 1,344 1,296 1,305 1,246
0
500
1,000
1,500N-VAN
(Japan)
1Q 2Q 3Q 4Q 1Q 2Q
FY19
Japan 157 167 174 198 162 170
North
America481 452 491 478 518 428
Europe 42 43 42 56 42 38
Asia 523 570 578 495 520 551
Other
Regions64 60 59 69 63 59
Total 1,267 1,292 1,344 1,296 1,305 1,246
FY18
1Q(列幅で調整) 2Q(列幅で調整) 3Q(列幅で調整) 4Q
- 46 ( - 3.6 % )
<North America>
・ Negative impact of the Mexico plant flooding <Asia>
・Decreased sales of CR-V in China
<Japan>
・ Positive impact of the new N-VAN introduction
and increased sales of N-BOX
中国 △14.0 (Civic +14.4、Fit +11.1、 CR-V △14.7、Crider △13.3 など)
52
Automobiles - Honda Group Unit Sales
Unit (thousand)
- JPY / USD
- USD / Others
(BRL, CAD, MXN)
- JPY / Asian Currencies
(INR, THB, VND, CNY, IDR)
- USD / ARS
- Others
- 1.5
- 12.0
- 2.0
- 8.0
- 13.2
SGAとR&Dから 増加・減少の文言 を取る (他との整合性& ±で分かる為)
1Q 2Q 3Q 4Q
Operating
Profit
152.9
Operating
Profit
214.4
242.6
+ 78.3 - 12.4
- 2.7
+ 16.2
283.0
- 37.7
- 18.3 - 36.7
“売上変動構成差”はひとつのことば
金融事業のみ売上減の場合は
“台数変動及び構成差”にする
金融以外の事業セグの時も
“台数変動及び構成差”にする
+ 53.7
Operating Profit + 61.5 ( + 40.2 % )
Profit before Income Taxes + 40.4 ( + 16.7 % )
・円 対 米ドル
・米ドル 対 他通貨 **
・円 対 アジア通貨 ***
・その他
- 120 億円
+ 50 億円
- 15 億円
- 94 億円
<Decrease Factors>
- Increase in warranty, etc.
53
Change in Profit before Income Taxes <FY19 2nd Qtr>
Revenue,
model mix,
etc.
Cost
Reduction,
etc. SG&A
R&D
Currency
Effects
Share of profit
of investments
accounted
for using
the equity
method
Finance
income
and
Finance
costs
Yen (billion)
FY18 2Q FY19 2Q
Litigation
Settlement
In FY18
- Currency Effects
- Interest rate swap
/currency swap
- Others
+ 1.8
- 4.4
- 0.2
Excluding currency effects
and litigation settlement
+ 44.4
Unit (thousand) FY19
Yen (billion) 1Q 2Q 3Q 4Q 1Q 2Q
Honda Group
Unit Sales 4,699 5,238 4,870 4,747 5,352 5,315(Consolidated
Unit Sales) (3,245) (3,446) (3,096) (3,167) (3,615) (3,533)
Sales Revenue 508.5 510.1 499.1 520.9 554.9 539.3
Yen (billion) Operating Profit Operating Margin
FY18
78.8 68.5 64.8 54.8
92.1 85.0
15.5% 13.4% 13.0%
10.5%
16.6% 15.8%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
20%
0
20
40
60
80
100
120
140
160
180
( + 5.7 % )
+ 29.2 (Currency effect - 29.6)
1Q 2Q 3Q 4Q 1Q 2Q
FY19FY18
Excel埋め込み有
Excel埋め込み有
経会 概況
1Q(列幅で調整) 2Q(列幅で調整) 3Q(列幅で調整) 4Q
( + 24.1 % )
54
Motorcycle Business Sales Revenue/Operating Profit (Margin)
<Increase Factors>
・Positive impact from sales volume
and model mix, etc.
Unit (thousand) FY19
Yen (billion) 1Q 2Q 3Q 4Q 1Q 2Q
Honda Group
Unit Sales 1,267 1,292 1,344 1,296 1,305 1,246(Consolidated
Unit Sales) (900) (907) (932) (950) (952) (875)
Sales Revenue 2,624.5 2,693.0 2,901.4 2,826.1 2,845.1 2,670.1
Yen (billion) Operating Profit Operating Margin
FY18
140.3
39.2
167.4
26.7
151.6
69.8
5.3%
1.5%
5.8%
0.9%
5.3%
2.6%
-20%
-10%
0%
10%
0
50
100
150
200
250
300
350
400
450
500
1Q 2Q 3Q 4Q 1Q 2Q
FY19FY18
Excel埋め込み有
Excel埋め込み有
経会 概況
1Q(列幅で調整) 2Q(列幅で調整) 3Q(列幅で調整) 4Q
( - 0.9 % )
- 22.9 (Currency effect - 40.0)
( + 78.0 % )
+ 306
為替影響 - 250
和解金 +537
実質影響 + 18
<Increase Factors>
・The impact of litigation settlement
in FY18
55
Automobile Business Sales Revenue/Operating Profit (Margin)
(excl. Litigation
settlement:3.4%)
0.1
-2.0
1.5
-3.0 -1.6
0.4
0.2%
-2.3%
1.7%
-2.8% -1.8%
0.5%
-10%
-5%
0%
5%
10%
-101Q 2Q 3Q 4Q 1Q 2Q
FY19FY18
Unit (thousand) FY19
Yen (billion) 1Q 2Q 3Q 4Q 1Q 2Q
Honda Group *
Unit Sales 1,331 1,258 1,196 2,477 1,341 1,262(Consolidated
Unit Sales) (1,331) (1,258) (1,196) (2,477) (1,341) (1,262)
Sales Revenue 83.1 87.8 93.4 106.7 87.8 86.9
Yen (billion) Operating Profit Operating Margin
FY18
(For reference)
Operating profit
from aircraft and
aircraft engines- 8.5 - 13.6 - 8.0 - 11.5 - 10.0 - 9.3
*Honda Group Unit Sales and Consolidated Unit Sales includes only power product units.
Excel埋め込み有
Excel埋め込み有
経会 概況
1Q(列幅で調整) 2Q(列幅で調整) 3Q(列幅で調整) 4Q
( - 1.0 % )
- 0.8 (Currency effect - 0.8)
56
Power Product & Other Businesses Sales Revenue/Operating Profit (Margin)
<Increase Factors>
・Decreased expenses in other
businesses operations etc.
49.8 47.2 50.7 48.2 57.1 59.1
9.2% 8.8% 9.6% 9.1% 9.6% 9.9%
-20%
-15%
-10%
-5%
0%
5%
10%
15%
0
20
40
60
80
100
120
FY19
Yen (billion) 1Q 2Q 3Q 4Q 1Q 2Q
Total Assets of
Finance Subsidiaries 9,494.4 9,688.7 9,867.1 9,409.2 9,783.2 10,153.8
Sales Revenue 539.6 539.5 527.1 530.8 593.1 600.2
Yen (billion) Operating Profit Operating Margin
FY18
Excel埋め込み有
Excel埋め込み有
経会 概況
1Q(列幅で調整) 2Q(列幅で調整) 3Q(列幅で調整) 4Q
1Q 2Q 3Q 4Q 1Q 2Q
FY19FY18
( + 11.3 % )
+ 60.7 (Currency effect + 0.7)
( + 25.3 % )
57
Financial Services Business Total Assets/Sales Revenue/Operating Profit (Margin)
<Increase Factors>
・Increase in operating lease revenues, etc.
34.3 -0.6 2.5
110.3
12.0 27.4 53.4
0.2
127.5
7.9
-50
0
50
100
150
+ 15.7 % - 20.2 % - 33.4 %
Yen (billion) FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19
Sales
Revenue1,058.2 1,205.6 2,067.9 2,131.2 208.9 210.7 1,094.2 1,113.6 202.6 176.4
Operating Profit : Yen (billion)
2Q 2Q 2Q 2Q 2Q
Japan North America Europe Asia Other Regions
FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19
2Q 2Q 2Q 2Q 2QExcel埋め込み有
Excel埋め込み有
1Q 2Q 3Q 4Q
経会 概況
<日本> - 69
為替影響 + 25
実質影響 - 95
<北米> + 541
為替影響 - 69
実質影響 + 611
<アジア> + 172
為替影響 - 102
実質影響 + 274
58
Sales Revenue/Operating Profit by Geographical Segment <FY19 2nd Qtr>
incl. litigation
settlement
53.7(loss)
From Asia 46.3 57.9 47.0 55.8 44.6 49.7
1Q 2Q 3Q 4Q 1Q 2Q
FY19FY18
52.9
82.2
54.5 57.9 54.3 63.9
0
20
40
60
80
100
- 18.3
( - 22.3 % )
Excel埋め込み有
1Q(列幅で調整) 2Q(列幅で調整) 3Q(列幅で調整) 4Q
59
Share of Profit of Investments Accounted for Using the Equity Method
Yen (billion)
60
FY19 Forecast: Capital Expenditures, Depreciation and R&D
0%
2%
4%
6%
8%
0
200
400
600
800
FY12 13 14 15 16 17 18 19P0%
2%
4%
6%
8%
0
200
400
600
800
FY12 13 14 15 16 17 18 19P0%
2%
4%
6%
8%
0
200
400
600
800
FY12 13 14 15 16 17 18 19P
Capital Expenditures Depreciation
Amounts % against Sales
US GAAP IFRS US GAAP IFRS US GAAP IFRS
R&D Expenditures
FY18 FY19
Results Forecast
Capital expenditures *1 433.8 480.0 + 46.2 -
Depreciation and
amortization *1467.3 455.0 - 12.3 -
Research and development
expenditures *2 730.7 790.0 + 59.2 -
Yen (billion)
ChangeChange from
previous forecast
No changes have been made to the previous forecasts (on July 31, 2018)
*1 Capital expenditures as well as Depreciation and amortization in results and forecast aforementioned exclude investment in operating leases,
finance leases and intangible assets.
*2 Research and development expenditures are research and development activity related costs incurred during the reporting period.
In accordance with IFRS, a portion of research and development expenditures is recognized as an intangible asset and amortized over its estimated
useful life. As such, this amount is not in conformity with "Research and development" on our Consolidated Statements of Income.
+ 538.2 - 332.8 - 247.7
+ 34.3
Net Change - 7.9
Free cash flow
+ 205.4 Net Cash
1,683.7
Net Cash
1,678.1
2,002.5
- 290.8 - 165.7 + 32.1
Net Cash
1,627.9
Net Cash
1,524.8
Net Change + 100.4
Free cash flow
+ 234.0
1Q 2Q 3Q 4Q
+ 524.9
2,102.9
2,150.1 2,142.2
61
Cash Flows of Non-financial Services Businesses
Cash & Cash equivalents
at beginning of FY18
Cash flows from operating activities
Cash flows from investing activities Cash flows from
financing activities Effect of exchange
rate changes
Yen (billion)
Cash & Cash equivalents
at end of period
FY18 Six Months
FY19 Six Months
Cash & Cash equivalents
at beginning of FY19
Cash flows from operating activities
Cash flows from investing activities Cash flows from
financing activities Effect of exchange
rate changes
Cash & Cash equivalents
at end of period
Caution with Respect to Forward-Looking Statements: This slide contains forward-looking statements about the performance of Honda, which are based on management’s assumptions and beliefs taking into account information
currently available to it. Therefore, please be advised that Honda’s actual results could differ materially from those described in these forward-looking statements as a result of
numerous factors, including general economic conditions in Honda’s principal markets and fluctuation of foreign exchange rates, as well as other factors detailed from time to time.
Accounting standards: Our consolidated financial statements are prepared in conformity with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards
Board (IASB)
Notice on the Factors for Increases and Decreases in Income: With respect to the discussion above of the change in Operating profit, management has identified the factors set forth below and used what it believes to be a reasonable method
to analyze the respective changes in such factors. Each of these factors is explained below. Management has analyzed changes in these factors at the levels of the Company and
its material consolidated subsidiaries.
(1)“Currency effects” consist of translation adjustments, which come from the translation of the currency of foreign subsidiaries’ financial statements into Japanese Yen, and foreign
currency adjustments, which result from foreign-currency-denominated sales, which, at the levels of the Company and those consolidated subsidiaries which have been analyzed,
primarily relate to the following currencies: U.S. dollar, Canada dollar, Euro, GBP, BRL and Japanese Yen.
(2) With respect to “Cost reduction, etc.”, management has analyzed cost reduction and effects of raw material cost fluctuations at the levels of the Company and its material
foreign manufacturing subsidiaries in North America, Europe and other regions.
(3) With respect to “Revenue, model mix, etc.”, management has analyzed changes in sales volume and in the mix of product models sold in major markets which have resulted in
increases/decreases in profit, as well as certain other reasons for increases/decreases in sales revenue and cost of sales.
(4) With respect to “Selling, General and Administrative expenses”, management has analyzed reasons for an increase/decrease in selling, general and administrative expenses
from the previous fiscal year net of currency translation effects.
(5) With respect to “Research and Development expenses”, management has analyzed reasons for an increase/decrease in research and development expenses from the
previous fiscal year net of currency translation effects.
Unit sales: Motorcycle Business Honda Group Unit Sales is the total unit sales of completed products, including motorcycles, ATVs, and Side-by-Side 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.
Automobile Business 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.
Power Product Businesses 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 was involved in the sale of Honda power products.
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