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6-K Filing
Honda Motor (HMC) 6-KCurrent report (foreign)
Filed: 7 Nov 17, 12:00am
No.1-7628
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE13a-16 OR15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF NOVEMBER 2017
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-Aoyama2-chome, Minato-ku, Tokyo107-8556, Japan
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form20-F or Form40-F:
Form20-F ☒ Form40-F ☐
Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-T Rule 101(b)(7): ☐
Exhibit 1:
Exhibit 2:
Exhibit 3:
Exhibit 4:
Exhibit 5:
Exhibit 6:
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: November 7, 2017
HONDA MOTOR CO., LTD. REPORTS
CONSOLIDATED FINANCIAL RESULTS
FOR THE FISCAL SECOND QUARTER AND
THE FISCAL FIRST HALF YEAR ENDED SEPTEMBER 30, 2017
Tokyo, November 1, 2017 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal second quarter and the fiscal first half year ended September 30, 2017.
Second Quarter Results
Honda’s consolidated profit for the period attributable to owners of the parent for the fiscal second quarter ended September 30, 2017 totaled JPY 174.0 billion (USD 1,544 million), a decrease of 1.7% from the same period last year. Earnings per share attributable to owners of the parent for the quarter amounted to JPY 96.55 (USD 0.86), a decrease of JPY 1.71 (USD 0.02) from JPY 98.26 for the corresponding period last year. One Honda American Depository Share represents one common share.
Consolidated sales revenue for the quarter amounted to JPY 3,776.1 billion (USD 33,498 million), an increase of 15.7% 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 quarter amounted to JPY 152.9 billion (USD 1,357 million), a decrease of 32.9% from the same period last year, due primarily to the loss related to the settlement of multidistrict class action litigation and the reverse effect from the impact of pension plan amendments in the previous fiscal year, despite an increase in sales volume and model mix and decreased SG&A expenses.
Share of profit of investments accounted for using the equity method for the quarter amounted to JPY 82.2 billion (USD 730 million), an increase of 106.4% from the corresponding period last year.
Consolidated profit before income taxes for the quarter totaled JPY 242.6 billion (USD 2,152 million), a decrease of 10.3% from the same period last year.
Explanatory note:
United States dollar amounts have been translated from yen solely for the convenience of the reader at the rate of JPY 112.73=USD 1, the mean of the telegraphic transfer selling exchange rate and the telegraphic transfer buying exchange rate prevailing on the Tokyo foreign exchange market on September 30, 2017.
First Half Year Results
Honda’s consolidated profit for the period attributable to owners of the parent for the fiscal first half year ended September 30, 2017 totaled JPY 381.3 billion, an increase of 8.4% from the same period last year. Earnings per share attributable to owners of the parent for the fiscal first half year amounted to JPY 211.59, an increase of JPY 16.40 from JPY 195.19 for the same period last year.
Consolidated sales revenue for the fiscal first half year amounted to JPY 7,489.2 billion, an increase of 11.2% from the same period last year, due primarily to increased revenue in all business operations as well as favorable foreign currency translation effects.
- 1 -
Consolidated operating profit for the fiscal first half year amounted to JPY 422.1 billion, a decrease of 14.7% from the same period last year, due primarily to the loss related to the settlement of multidistrict class action litigation and the reverse effect from the impact of pension plan amendments in the previous fiscal year, despite an increase in sales volume and model mix and continuing cost reduction efforts.
Share of profit of investments accounted for using the equity method for the fiscal first half year amounted to JPY 135.2 billion, an increase of 101.6% from the corresponding period last year.
Consolidated profit before income taxes for the fiscal first half year totaled JPY 577.6 billion, an increase of 3.3% from the same period last year, due primarily to an increase in share of profit of investments accounted for using the equity method.
- 2 -
Consolidated Statements of Financial Position for the Fiscal First Half Year Ended September 30, 2017
Total assets increased by JPY 568.9 billion, to JPY 19,527.0 billion from March 31, 2017, mainly due to an increase in Investments accounted for using the equity method and Equipment on operating leases. Total liabilities increased by JPY 166.2 billion, to JPY 11,554.7 billion from March 31, 2017, mainly due to an increase in Financing liabilities and foreign currency translation effects, despite a decrease in Trade payables and Provisions. Total equity increased by JPY 402.7 billion, to JPY 7,972.3 billion from March 31, 2017 due mainly to increased Retained earnings attributable to increased Profit for the period.
Consolidated Statements of Cash Flows for the Fiscal First Half Year Ended September 30, 2017
Consolidated cash and cash equivalents on September 30, 2017 increased by JPY 101.8 billion from March 31, 2017, to JPY 2,207.8 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 491.1 billion for the fiscal first half year ended September 30, 2017. Cash inflows from operating activities increased by JPY 98.9 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 308.6 billion. Cash outflows from investing activities decreased by JPY 31.9 billion compared with the same period of the previous fiscal year, due mainly to a decrease in Payments for acquisitions of other financial assets.
Cash flows from financing activities
Net cash used in financing activities amounted to JPY 114.3 billion. Cash outflows from financing activities increased by JPY 135.3 billion compared with the same period of the previous fiscal year, due mainly to a decrease in proceeds from financing liabilities.
- 3 -
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 | 15,050.0 | +7.5 | % | |||||
Operating profit | 745.0 | -11.4 | % | |||||
Profit before income taxes | 955.0 | -5.2 | % | |||||
Profit for the year | 650.0 | -4.3 | % | |||||
Profit for the year attributable to owners of the parent | 585.0 | -5.1 | % | |||||
Yen | ||||||||
Earnings per share attributable to owners of the parent | ||||||||
Basic and diluted | 326.26 |
Note: The forecasts are based on the assumption that the average exchange rates for the Japanese yen to the U.S. dollar will be JPY 109 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. | + 89.0 | |||
Cost reduction, the effect of raw material cost fluctuations, etc. | + 75.0 | |||
SG&A expenses | - 57.0 | |||
R&D expenses | - 54.0 | |||
Currency effect | - 11.0 | |||
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 | - 95.7 | |||
|
| |||
Share of profit of investments accounted for using the equity method | + 40.2 | |||
Finance income and finance costs | + 3.5 | |||
|
| |||
Profit before income taxes compared with fiscal year ended March 31, 2017 | - 51.9 | |||
|
|
- 4 -
Dividend per Share of Common Stock
Fiscal second quarter dividend is JPY 24 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 96 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.
- 5 -
Consolidated Financial Summary
For the three months and six months ended September 30, 2016 and 2017
Financial Highlights
Yen (millions) | ||||||||||||||||
Three months ended Sep. 30, 2016 | Three months ended Sep. 30, 2017 | Six months ended Sep. 30, 2016 | Six months ended Sep. 30, 2017 | |||||||||||||
Sales revenue | 3,262,968 | 3,776,199 | 6,734,698 | 7,489,295 | ||||||||||||
Operating profit | 228,081 | 152,945 | 494,924 | 422,156 | ||||||||||||
Profit before income taxes | 270,566 | 242,603 | 559,058 | 577,628 | ||||||||||||
Profit for the period attributable to owners of the parent | 177,096 | 174,006 | 351,795 | 381,341 | ||||||||||||
Yen | ||||||||||||||||
Earnings per share attributable to owners of the parent | ||||||||||||||||
Basic and diluted | 98.26 | 96.55 | 195.19 | 211.59 | ||||||||||||
U.S. Dollar (millions) | ||||||||||||||||
Three months ended Sep. 30, 2017 | Six months ended Sep. 30, 2017 | |||||||||||||||
Sales revenue | 33,498 | 66,436 | ||||||||||||||
Operating profit | 1,357 | 3,745 | ||||||||||||||
Profit before income taxes | 2,152 | 5,124 | ||||||||||||||
Profit for the period attributable to owners of the parent | 1,544 | 3,383 | ||||||||||||||
U.S. Dollar | ||||||||||||||||
Earnings per share attributable to owners of the parent | ||||||||||||||||
Basic and diluted | 0.86 | 1.88 |
- 6 -
[1] Condensed Consolidated Statements of Financial Position
Yen (millions) | ||||||||
Mar. 31, 2017 | Sep. 30, 2017 | |||||||
Assets | ||||||||
Current assets: | ||||||||
Cash and cash equivalents | 2,105,976 | 2,207,825 | ||||||
Trade receivables | 764,026 | 757,390 | ||||||
Receivables from financial services | 1,878,938 | 1,853,018 | ||||||
Other financial assets | 149,427 | 94,120 | ||||||
Inventories | 1,364,130 | 1,426,241 | ||||||
Other current assets | 292,970 | 325,261 | ||||||
|
|
|
| |||||
Total current assets | 6,555,467 | 6,663,855 | ||||||
|
|
|
| |||||
Non-current assets: | ||||||||
Investments accounted for using the equity method | 597,262 | 738,425 | ||||||
Receivables from financial services | 3,070,615 | 3,205,059 | ||||||
Other financial assets | 364,612 | 420,151 | ||||||
Equipment on operating leases | 4,104,663 | 4,265,697 | ||||||
Property, plant and equipment | 3,200,378 | 3,186,888 | ||||||
Intangible assets | 778,192 | 757,188 | ||||||
Deferred tax assets | 121,509 | 113,914 | ||||||
Other non-current assets | 165,425 | 175,902 | ||||||
|
|
|
| |||||
Total non-current assets | 12,402,656 | 12,863,224 | ||||||
|
|
|
| |||||
Total assets | 18,958,123 | 19,527,079 | ||||||
|
|
|
| |||||
Liabilities and Equity | ||||||||
Current liabilities: | ||||||||
Trade payables | 1,183,344 | 1,097,166 | ||||||
Financing liabilities | 2,786,928 | 2,856,693 | ||||||
Accrued expenses | 417,736 | 436,167 | ||||||
Other financial liabilities | 119,784 | 113,988 | ||||||
Income taxes payable | 45,507 | 57,720 | ||||||
Provisions | 348,095 | 287,482 | ||||||
Other current liabilities | 527,448 | 588,570 | ||||||
|
|
|
| |||||
Total current liabilities | 5,428,842 | 5,437,786 | ||||||
|
|
|
| |||||
Non-current liabilities: | ||||||||
Financing liabilities | 4,022,190 | 4,126,789 | ||||||
Other financial liabilities | 47,241 | 67,859 | ||||||
Retirement benefit liabilities | 494,131 | 449,065 | ||||||
Provisions | 248,935 | 242,286 | ||||||
Deferred tax liabilities | 900,450 | 947,348 | ||||||
Other non-current liabilities | 246,708 | 283,615 | ||||||
|
|
|
| |||||
Total non-current liabilities | 5,959,655 | 6,116,962 | ||||||
|
|
|
| |||||
Total liabilities | 11,388,497 | 11,554,748 | ||||||
|
|
|
| |||||
Equity: | ||||||||
Common stock | 86,067 | 86,067 | ||||||
Capital surplus | 171,118 | 171,118 | ||||||
Treasury stock | (26,189 | ) | (26,193 | ) | ||||
Retained earnings | 6,712,894 | 7,008,465 | ||||||
Other components of equity | 351,406 | 454,012 | ||||||
|
|
|
| |||||
Equity attributable to owners of the parent | 7,295,296 | 7,693,469 | ||||||
Non-controlling interests | 274,330 | 278,862 | ||||||
|
|
|
| |||||
Total equity | 7,569,626 | 7,972,331 | ||||||
|
|
|
| |||||
Total liabilities and equity | 18,958,123 | 19,527,079 | ||||||
|
|
|
|
- 7 -
[2] Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Comprehensive Income
Condensed Consolidated Statements of Income
For the three months ended September 30, 2016 and 2017
Yen (millions) | ||||||||
Three months ended Sep. 30, 2016 | Three months ended Sep. 30, 2017 | |||||||
Sales revenue | 3,262,968 | 3,776,199 | ||||||
Operating costs and expenses: | ||||||||
Cost of sales | (2,522,871 | ) | (2,988,854 | ) | ||||
Selling, general and administrative | (384,621 | ) | (462,449 | ) | ||||
Research and development | (127,395 | ) | (171,951 | ) | ||||
|
|
|
| |||||
Total operating costs and expenses | (3,034,887 | ) | (3,623,254 | ) | ||||
|
|
|
| |||||
Operating profit | 228,081 | 152,945 | ||||||
|
|
|
| |||||
Share of profit of investments accounted for using the equity method | 39,861 | 82,263 | ||||||
Finance income and finance costs: | ||||||||
Interest income | 7,368 | 9,816 | ||||||
Interest expense | (3,099 | ) | (3,297 | ) | ||||
Other, net | (1,645 | ) | 876 | |||||
|
|
|
| |||||
Total finance income and finance costs | 2,624 | 7,395 | ||||||
|
|
|
| |||||
Profit before income taxes | 270,566 | 242,603 | ||||||
Income tax expense | (78,828 | ) | (50,958 | ) | ||||
|
|
|
| |||||
Profit for the period | 191,738 | 191,645 | ||||||
|
|
|
| |||||
Profit for the period attributable to: | ||||||||
Owners of the parent | 177,096 | 174,006 | ||||||
Non-controlling interests | 14,642 | 17,639 | ||||||
Yen | ||||||||
Earnings per share attributable to owners of the parent | ||||||||
Basic and diluted | 98.26 | 96.55 |
- 8 -
Condensed Consolidated Statements of Comprehensive Income
For the three months ended September 30, 2016 and 2017
Yen (millions) | ||||||||
Three months ended Sep. 30, 2016 | Three months ended Sep. 30, 2017 | |||||||
Profit for the period | 191,738 | 191,645 | ||||||
Other comprehensive income, net of tax: | ||||||||
Items that will not be reclassified to profit or loss | ||||||||
Remeasurements of defined benefit plans | 11,561 | — | ||||||
Net changes in revaluation of financial assets measured at fair value through other comprehensive income | 11,828 | 6,240 | ||||||
Share of other comprehensive income of investments accounted for using the equity method | 1,285 | 1,084 | ||||||
Items that may be reclassified subsequently to profit or loss | ||||||||
Exchange differences on translating foreign operations | (76,918 | ) | 79,642 | |||||
Share of other comprehensive income of investments accounted for using the equity method | (21,421 | ) | 7,932 | |||||
|
|
|
| |||||
Total other comprehensive income, net of tax | (73,665 | ) | 94,898 | |||||
|
|
|
| |||||
Comprehensive income for the period | 118,073 | 286,543 | ||||||
|
|
|
| |||||
Comprehensive income for the period attributable to: | ||||||||
Owners of the parent | 107,204 | 264,831 | ||||||
Non-controlling interests | 10,869 | 21,712 |
- 9 -
Condensed Consolidated Statements of Income
For the six months ended September 30, 2016 and 2017
Yen (millions) | ||||||||
Six months ended Sep. 30, 2016 | Six months ended Sep. 30, 2017 | |||||||
Sales revenue | 6,734,698 | 7,489,295 | ||||||
Operating costs and expenses: | ||||||||
Cost of sales | (5,200,531 | ) | (5,863,643 | ) | ||||
Selling, general and administrative | (746,284 | ) | (857,272 | ) | ||||
Research and development | (292,959 | ) | (346,224 | ) | ||||
|
|
|
| |||||
Total operating costs and expenses | (6,239,774 | ) | (7,067,139 | ) | ||||
|
|
|
| |||||
Operating profit | 494,924 | 422,156 | ||||||
|
|
|
| |||||
Share of profit of investments accounted for using the equity method | 67,083 | 135,211 | ||||||
Finance income and finance costs: | ||||||||
Interest income | 14,808 | 18,813 | ||||||
Interest expense | (6,191 | ) | (6,151 | ) | ||||
Other, net | (11,566 | ) | 7,599 | |||||
|
|
|
| |||||
Total finance income and finance costs | (2,949 | ) | 20,261 | |||||
|
|
|
| |||||
Profit before income taxes | 559,058 | 577,628 | ||||||
Income tax expense | (177,454 | ) | (160,475 | ) | ||||
|
|
|
| |||||
Profit for the period | 381,604 | 417,153 | ||||||
|
|
|
| |||||
Profit for the period attributable to: | ||||||||
Owners of the parent | 351,795 | 381,341 | ||||||
Non-controlling interests | 29,809 | 35,812 | ||||||
Yen | ||||||||
Earnings per share attributable to owners of the parent | ||||||||
Basic and diluted | 195.19 | 211.59 |
- 10 -
Condensed Consolidated Statements of Comprehensive Income
For the six months ended September 30, 2016 and 2017
Yen (millions) | ||||||||
Six months ended Sep. 30, 2016 | Six months ended Sep. 30, 2017 | |||||||
Profit for the period | 381,604 | 417,153 | ||||||
Other comprehensive income, net of tax: | ||||||||
Items that will not be reclassified to profit or loss | ||||||||
Remeasurements of defined benefit plans | 11,561 | — | ||||||
Net changes in revaluation of financial assets measured at fair value through other comprehensive income | 907 | 12,057 | ||||||
Share of other comprehensive income of investments accounted for using the equity method | (799 | ) | (98 | ) | ||||
Items that may be reclassified subsequently to profit or loss | ||||||||
Exchange differences on translating foreign operations | (453,298 | ) | 86,134 | |||||
Share of other comprehensive income of investments accounted for using the equity method | (57,685 | ) | 11,281 | |||||
|
|
|
| |||||
Total other comprehensive income, net of tax | (499,314 | ) | 109,374 | |||||
|
|
|
| |||||
Comprehensive income for the period | (117,710 | ) | 526,527 | |||||
|
|
|
| |||||
Comprehensive income for the period attributable to: | ||||||||
Owners of the parent | (117,593 | ) | 484,686 | |||||
Non-controlling interests | (117 | ) | 41,841 |
- 11 -
[3] Condensed Consolidated Statements of Changes in Equity
As of and for the six months ended September 30, 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 | 351,795 | 351,795 | 29,809 | 381,604 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
| (469,388 | ) |
| (469,388 | ) |
| (29,926 | ) |
| (499,314 | ) | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total comprehensive income for the period |
| 351,795 |
|
| (469,388 | ) |
| (117,593 | ) |
| (117 | ) |
| (117,710 | ) | |||||||||||||||||
Reclassification to retained earnings |
| 16,868 |
|
| (16,868 | ) |
| — |
|
| — |
| ||||||||||||||||||||
Transactions with owners and other | ||||||||||||||||||||||||||||||||
Dividends paid | (79,300 | ) | (79,300 | ) | (30,545 | ) | (109,845 | ) | ||||||||||||||||||||||||
Purchases of treasury stock | (4 | ) | (4 | ) | (4 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total transactions with owners and other |
| (4 | ) |
| (79,300 | ) |
| (79,304 | ) |
| (30,545 | ) |
| (109,849 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Balance as of September 30, 2016 | 86,067 | 171,118 | (26,182 | ) | 6,483,674 | (150,141 | ) | 6,564,536 | 239,693 | 6,804,229 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
As of and for the six months ended September 30, 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 | 381,341 | 381,341 | 35,812 | 417,153 | ||||||||||||||||||||||||||||
Other comprehensive income, net of tax |
| 103,345 |
|
| 103,345 |
|
| 6,029 |
|
| 109,374 |
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total comprehensive income for the period |
| 381,341 |
|
| 103,345 |
|
| 484,686 |
|
| 41,841 |
|
| 526,527 |
| |||||||||||||||||
Reclassification to retained earnings |
| 739 |
|
| (739 | ) |
| — |
|
| — |
| ||||||||||||||||||||
Transactions with owners and other | ||||||||||||||||||||||||||||||||
Dividends paid | (86,509 | ) | (86,509 | ) | (37,309 | ) | (123,818 | ) | ||||||||||||||||||||||||
Purchases of treasury stock | (4 | ) | (4 | ) | (4 | ) | ||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total transactions with owners and other |
| (4 | ) |
| (86,509 | ) |
| (86,513 | ) |
| (37,309 | ) |
| (123,822 | ) | |||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Balance as of September 30, 2017 | 86,067 | 171,118 | (26,193 | ) | 7,008,465 | 454,012 | 7,693,469 | 278,862 | 7,972,331 | |||||||||||||||||||||||
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- 12 -
[4] Consolidated Statements of Cash Flows
Yen (millions) | ||||||||
Six months ended Sep. 30, 2016 | Six months ended Sep. 30, 2017 | |||||||
Cash flows from operating activities: | ||||||||
Profit before income taxes | 559,058 | 577,628 | ||||||
Depreciation, amortization and impairment losses excluding equipment on operating leases | 328,087 | 351,815 | ||||||
Share of profit of investments accounted for using the equity method | (67,083 | ) | (135,211 | ) | ||||
Finance income and finance costs, net | (17,878 | ) | 18,208 | |||||
Interest income and interest costs from financial services, net | (59,724 | ) | (62,832 | ) | ||||
Changes in assets and liabilities | ||||||||
Trade receivables | 80,136 | 19,816 | ||||||
Inventories | (54,326 | ) | (38,027 | ) | ||||
Trade payables | (39,652 | ) | (63,482 | ) | ||||
Accrued expenses | (15,743 | ) | 8,035 | |||||
Provisions and retirement benefit liabilities | (169,889 | ) | (50,983 | ) | ||||
Receivables from financial services | 63,491 | (11,620 | ) | |||||
Equipment on operating leases | (281,527 | ) | (108,962 | ) | ||||
Other assets and liabilities | 6,375 | (7,709 | ) | |||||
Other, net | (5,051 | ) | (2,690 | ) | ||||
Dividends received | 52,353 | 62,090 | ||||||
Interest received | 106,089 | 117,546 | ||||||
Interest paid | (48,710 | ) | (54,613 | ) | ||||
Income taxes paid, net of refunds | (43,861 | ) | (127,905 | ) | ||||
|
|
|
| |||||
Net cash provided by operating activities | 392,145 | 491,104 | ||||||
Cash flows from investing activities: | ||||||||
Payments for additions to property, plant and equipment | (220,278 | ) | (236,063 | ) | ||||
Payments for additions to and internally developed intangible assets | (79,141 | ) | (72,710 | ) | ||||
Proceeds from sales of property, plant and equipment and intangible assets | 10,223 | 10,293 | ||||||
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 | ) | |||||
Payments for acquisitions of other financial assets | (114,612 | ) | (92,946 | ) | ||||
Proceeds from sales and redemptions of other financial assets | 66,194 | 84,498 | ||||||
Other, net | (200 | ) | 719 | |||||
|
|
|
| |||||
Net cash used in investing activities | (340,649 | ) | (308,659 | ) | ||||
Cash flows from financing activities: | ||||||||
Proceeds from short-term financing liabilities | 4,243,184 | 3,921,076 | ||||||
Repayments of short-term financing liabilities | (4,211,031 | ) | (3,804,854 | ) | ||||
Proceeds from long-term financing liabilities | 845,193 | 695,549 | ||||||
Repayments of long-term financing liabilities | (723,464 | ) | (784,848 | ) | ||||
Dividends paid to owners of the parent | (79,300 | ) | (86,509 | ) | ||||
Dividends paid to non-controlling interests | (29,395 | ) | (32,118 | ) | ||||
Purchases and sales of treasury stock, net | (4 | ) | (4 | ) | ||||
Other, net | (24,251 | ) | (22,691 | ) | ||||
|
|
|
| |||||
Net cash provided by (used in) financing activities | 20,932 | (114,399 | ) | |||||
Effect of exchange rate changes on cash and cash equivalents | (150,175 | ) | 33,803 | |||||
|
|
|
| |||||
Net change in cash and cash equivalents | (77,747 | ) | 101,849 | |||||
Cash and cash equivalents at beginning of year | 1,757,456 | 2,105,976 | ||||||
|
|
|
| |||||
Cash and cash equivalents at end of period | 1,679,709 | 2,207,825 | ||||||
|
|
|
|
- 13 -
[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, and Sales and related services | ||
Automobile Business | Automobiles and relevant parts | Research and Development, Manufacturing, and Sales and related services | ||
Financial Services Business | Financial services | Retail loan and lease related to Honda products, and Others | ||
Power Product and Other Businesses | Power products and relevant parts, and others | Research and Development, Manufacturing, Sales and related services, and Others |
1. Segment information based on products and services
For the three months ended September 30, 2016
Yen (millions) | ||||||||||||||||||||||||||||
Motorcycle Business | Automobile Business | Financial Services Business | Power Product and Other Businesses | Segment Total | Reconciling Items | Consolidated | ||||||||||||||||||||||
Sales revenue: | ||||||||||||||||||||||||||||
External customers | 409,376 | 2,341,660 | 443,201 | 68,731 | 3,262,968 | — | 3,262,968 | |||||||||||||||||||||
Intersegment | — | 35,740 | 3,173 | 4,843 | 43,756 | (43,756 | ) | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 409,376 | 2,377,400 | 446,374 | 73,574 | 3,306,724 | (43,756 | ) | 3,262,968 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Segment profit (loss) | 59,510 | 131,830 | 37,778 | (1,037 | ) | 228,081 | — | 228,081 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
For the three months ended September 30, 2017
|
| |||||||||||||||||||||||||||
Yen (millions) | ||||||||||||||||||||||||||||
Motorcycle Business | Automobile Business | Financial Services Business | Power Product and Other Businesses | Segment Total | Reconciling Items | Consolidated | ||||||||||||||||||||||
Sales revenue: | ||||||||||||||||||||||||||||
External customers | 510,109 | 2,647,865 | 535,235 | 82,990 | 3,776,199 | — | 3,776,199 | |||||||||||||||||||||
Intersegment | — | 45,219 | 4,329 | 4,814 | 54,362 | (54,362 | ) | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 510,109 | 2,693,084 | 539,564 | 87,804 | 3,830,561 | (54,362 | ) | 3,776,199 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Segment profit (loss) | 68,520 | 39,223 | 47,251 | (2,049 | ) | 152,945 | — | 152,945 | ||||||||||||||||||||
|
|
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|
|
|
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|
|
|
|
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|
|
- 14 -
As of and for the six months ended September 30, 2016
Yen (millions) | ||||||||||||||||||||||||||||
Motorcycle Business | Automobile Business | Financial Services Business | Power Product and Other Businesses | Segment Total | Reconciling Items | Consolidated | ||||||||||||||||||||||
Sales revenue: | ||||||||||||||||||||||||||||
External customers | 841,780 | 4,840,645 | 907,875 | 144,398 | 6,734,698 | — | 6,734,698 | |||||||||||||||||||||
Intersegment | — | 72,866 | 6,469 | 10,088 | 89,423 | (89,423 | ) | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 841,780 | 4,913,511 | 914,344 | 154,486 | 6,824,121 | (89,423 | ) | 6,734,698 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Segment profit (loss) | 90,708 | 316,363 | 88,355 | (502 | ) | 494,924 | — | 494,924 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Segment assets | 1,259,390 | 7,047,423 | 8,440,387 | 308,276 | 17,055,476 | (67,030 | ) | 16,988,446 | ||||||||||||||||||||
Depreciation and amortization | 37,883 | 282,085 | 311,383 | 6,620 | 637,971 | — | 637,971 | |||||||||||||||||||||
Capital expenditures | 22,721 | 246,643 | 990,383 | 5,406 | 1,265,153 | — | 1,265,153 | |||||||||||||||||||||
As of and for the six months ended September 30, 2017
|
| |||||||||||||||||||||||||||
Yen (millions) | ||||||||||||||||||||||||||||
Motorcycle Business | Automobile Business | Financial Services Business | Power Product and Other Businesses | Segment Total | Reconciling Items | Consolidated | ||||||||||||||||||||||
Sales revenue: | ||||||||||||||||||||||||||||
External customers | 1,018,649 | 5,237,800 | 1,072,192 | 160,654 | 7,489,295 | — | 7,489,295 | |||||||||||||||||||||
Intersegment | — | 79,854 | 7,061 | 10,263 | 97,178 | (97,178 | ) | — | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Total | 1,018,649 | 5,317,654 | 1,079,253 | 170,917 | 7,586,473 | (97,178 | ) | 7,489,295 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Segment profit (loss) | 147,362 | 179,567 | 97,115 | (1,888 | ) | 422,156 | — | 422,156 | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||
Segment assets | 1,456,075 | 7,845,059 | 9,688,731 | 314,363 | 19,304,228 | 222,851 | 19,527,079 | |||||||||||||||||||||
Depreciation and amortization | 37,138 | 304,915 | 367,541 | 7,610 | 717,204 | — | 717,204 | |||||||||||||||||||||
Capital expenditures | 22,047 | 251,843 | 938,163 | 4,445 | 1,216,498 | — | 1,216,498 |
Explanatory notes:
1. | Intersegment sales revenues are generally made at values that approximatearm’s-length prices. |
2. | Unallocated corporate assets, included in reconciling items, amounted to JPY 341,711 million as of September 30, 2016 and JPY 581,929 million as of September 30, 2017 respectively, which consist primarily of 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 September 30, 2016
Yen (millions) | ||||||||||||||||||||||||||||||||
Japan | North America | Europe | Asia | Other Regions | Total | Reconciling Items | Consolidated | |||||||||||||||||||||||||
Sales revenue: | ||||||||||||||||||||||||||||||||
External customers | 513,380 | 1,738,587 | 139,244 | 698,886 | 172,871 | 3,262,968 | — | 3,262,968 | ||||||||||||||||||||||||
Inter-geographic areas | 464,171 | 100,658 | 21,852 | 132,390 | 795 | 719,866 | (719,866 | ) | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total | 977,551 | 1,839,245 | 161,096 | 831,276 | 173,666 | 3,982,834 | (719,866 | ) | 3,262,968 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Operating profit (loss) | 85,843 | 38,112 | 105 | 91,282 | 13,426 | 228,768 | (687 | ) | 228,081 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
For the three months ended September 30, 2017
|
| |||||||||||||||||||||||||||||||
Yen (millions) | ||||||||||||||||||||||||||||||||
Japan | North America | Europe | Asia | Other Regions | Total | Reconciling Items | Consolidated | |||||||||||||||||||||||||
Sales revenue: | ||||||||||||||||||||||||||||||||
External customers | 547,386 | 1,936,664 | 158,081 | 933,264 | 200,804 | 3,776,199 | — | 3,776,199 | ||||||||||||||||||||||||
Inter-geographic areas | 510,878 | 131,319 | 50,885 | 160,950 | 1,837 | 855,869 | (855,869 | ) | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total | 1,058,264 | 2,067,983 | 208,966 | 1,094,214 | 202,641 | 4,632,068 | (855,869 | ) | 3,776,199 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Operating profit (loss) | 34,324 | (660 | ) | 2,529 | 110,313 | 12,001 | 158,507 | (5,562 | ) | 152,945 | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
- 15 -
As of and for the six months ended September 30, 2016
Yen (millions) | ||||||||||||||||||||||||||||||||
Japan | North America | Europe | Asia | Other Regions | Total | Reconciling Items | Consolidated | |||||||||||||||||||||||||
Sales revenue: | ||||||||||||||||||||||||||||||||
External customers | 977,558 | 3,709,230 | 312,139 | 1,390,663 | 345,108 | 6,734,698 | — | 6,734,698 | ||||||||||||||||||||||||
Inter-geographic areas | 905,680 | 198,818 | 31,952 | 271,911 | 1,409 | 1,409,770 | (1,409,770 | ) | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total | 1,883,238 | 3,908,048 | 344,091 | 1,662,574 | 346,517 | 8,144,468 | (1,409,770 | ) | 6,734,698 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Operating profit (loss) | 66,066 | 209,383 | 1,351 | 181,603 | 27,752 | 486,155 | 8,769 | 494,924 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Assets | 4,130,606 | 9,447,227 | 572,484 | 2,334,452 | 595,104 | 17,079,873 | (91,427 | ) | 16,988,446 | |||||||||||||||||||||||
Non-current assets other than financial instruments and deferred tax assets | 2,428,393 | 4,144,241 | 102,429 | 624,160 | 166,999 | 7,466,222 | — | 7,466,222 | ||||||||||||||||||||||||
As of and for the six months ended September 30, 2017
|
| |||||||||||||||||||||||||||||||
Yen (millions) | ||||||||||||||||||||||||||||||||
Japan | North America | Europe | Asia | Other Regions | Total | Reconciling Items | Consolidated | |||||||||||||||||||||||||
Sales revenue: | �� | |||||||||||||||||||||||||||||||
External customers | 1,055,330 | 3,945,541 | 324,829 | 1,760,360 | 403,235 | 7,489,295 | — | 7,489,295 | ||||||||||||||||||||||||
Inter-geographic areas | 1,027,958 | 252,567 | 97,404 | 315,556 | 3,268 | 1,696,753 | (1,696,753 | ) | — | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Total | 2,083,288 | 4,198,108 | 422,233 | 2,075,916 | 406,503 | 9,186,048 | (1,696,753 | ) | 7,489,295 | |||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Operating profit (loss) | 55,860 | 100,929 | 9,182 | 208,146 | 26,731 | 400,848 | 21,308 | 422,156 | ||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||||||
Assets | 4,175,437 | 10,988,524 | 685,662 | 2,901,384 | 677,984 | 19,428,991 | 98,088 | 19,527,079 | ||||||||||||||||||||||||
Non-current assets other than financial instruments and deferred tax assets | 2,482,510 | 4,914,567 | 108,873 | 701,566 | 178,159 | 8,385,675 | — | 8,385,675 |
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 341,711 million as of September 30, 2016 and JPY 581,929 million as of September 30, 2017 respectively, which consist primarily of cash and cash equivalents and financial assets measured at fair value through other comprehensive income. |
- 16 -
[B] Subsequent Event
Acquisition of the Company’s Own Shares
The Board of Directors of the company, at its meeting held on November 1, 2017, resolved that the Company will acquire its own shares pursuant to Article 459, Paragraph 1 of the Company Law and Article 33 of the Company’s Articles of Incorporation.
(1) | Reason for acquisition of own share: |
The Company will acquire its own shares for the purpose, among others, of improving efficiency of its capital structure and implementing a flexible capital strategy.
(2) | Class of shares and total number of shares to be acquired: |
Shares of Common Stock, up to 24,000 thousand shares
(3) | Total amount of shares to be acquired: |
Up to 90,000 million yen
(4) | Period of acquisition: |
Starting on November 2, 2017 and ending on January 31, 2018
(5) | Method of acquisition: |
Market purchases on the Tokyo Stock Exchange
1. | Purchases through the Tokyo Stock Exchange Trading NetworkOff-Auction Own Share Repurchase Trading System(ToSTNeT-3) |
2. | Market purchases based on discretionary investment contracts regarding acquisition of own shares |
[C] 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 six months ended September 30, 2017, Honda has reached a settlement with the plaintiffs regarding the multidistrict class action litigation in the United States. This settlement is subject to the 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.
- 17 -
2. Impairment loss and reversal of impairment loss on investments accounted for using the equity method
For the six months ended September 30, 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 six months ended September 30, 2017, the Company did not recognize any significant impairment losses.
In addition, for the six months ended September 30, 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 is included in share of profit of investments accounted for using the equity method in the condensed consolidated statement of income.
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 alump-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 six months ended September 30, 2016. The defined benefit obligations and plan assets were also remeasured.
- 18 -
To: From: | Shareholdersof Honda Motor Co., Ltd. HondaMotor Co., Ltd. 1-1, Minami-Aoyama2-chome, Minato-ku,Tokyo,107-8556 TakahiroHachigo Presidentand Representative Director | November 1, 2017 |
Notice Concerning Change of the Company’s Profit Redistribution Policy
The Board of Directors of Honda Motor Co., Ltd. (the “Company”), at its meeting held on November 1, 2017, resolved that the Company will change its Profit Redistribution Policy as follows.
Particulars
1. | Reason for Change of the Company’s Profit Redistribution Policy |
The Company considers the redistribution of profits to its shareholders to be one of the most important management issues. For the purpose of further improving the Company’s capital strategy, the Company has changed the profit redistribution policy from “the present goal is to maintain a shareholders’ return ratio (i.e. the ratio of the total of the dividend payment and the repurchase of the Company’s own shares to consolidated profit for the year attributable to owners of the parent) of approximately 30%” to “with respect to dividends, the present goal is to realize a return ratio (i.e. the ratio of the total of the dividend payment to consolidated profit for the year attributable to owners of the parent) alone of approximately 30% ”.
2. | Details of Change of the Company’s Profit Redistribution Policy (substantial changes are underlined.) |
(1) | Before Change |
With respect to the redistribution of profits to its shareholders, which we consider to be one of the most important management issues, the Company’s basic policy for dividends is to make distributions after taking into account its long-term consolidated earnings performance. The Company may also acquire its own shares at a timing that it deems optimal, with the goal of improving efficiency of the Company’s capital structure and implementing a flexible capital structure policy.
The present goal is to maintain a shareholders’ return ratio (i.e. the ratio of the total of the dividend payment and the repurchase of the Company’s own shares to consolidated profit for the year attributable to owners of the parent) of approximately 30%.
(2) | After Change |
With respect to the redistribution of profits to its shareholders, which we consider to be one of the most important management issues, the Company’s basic policy is to determine such distributions after taking into account, among others, itsretained earnings for future growth and consolidated earnings performance based on a long-term perspective.
With respect to dividends, the present goal is to realize a return ratio (i.e. the ratio of the total of the dividend payment to consolidated profit for the year attributable to owners of the parent) of approximately 30%.
The Company may also acquire its own shares at a timing that it deems optimal, with the goal of improving efficiency of the Company’s capital structure and implementing a flexible capital strategy.
November 1, 2017
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 Acquisition of the Company’s Own Shares
(Acquisition of the Company’s own shares pursuant to the Articles of Incorporation of the Company
in accordance with Article 459, Paragraph 1 of the Company Law)
The Board of Directors of Honda Motor Co., Ltd. (the “Company”), at its meeting held on November 1, 2017, resolved that the Company will acquire its own shares pursuant to Article 459, Paragraph 1 of the Company Law and Article 33 of the Company’s Articles of Incorporation.
Particulars
1. | Reason for acquisition of own shares |
The Company will acquire its own shares for the purpose, among others, of improving efficiency of its capital structure and implementing a flexible capital strategy.
2. | Details of the acquisition |
(1) | Class of shares to be acquired: |
Shares of common stock
(2) | Total number of shares to be acquired: |
Up to 24,000,000 shares (1.3 % of total number of issued shares (excluding treasury stock))
(3) | Total amount of shares to be acquired: |
Up to 90 billion yen
(4) | Period of acquisition: |
Starting on November 2, 2017 and ending on January 31, 2018
(5) | Method of acquisition: |
Market purchases on the Tokyo Stock Exchange
1. | Purchases through the Tokyo Stock Exchange Trading NetworkOff-Auction Own Share Repurchase Trading System(ToSTNeT-3) |
2. | Market purchases based on discretionary investment contracts regarding acquisition of own shares |
Reference: | The Company’s treasury stock held as of September 30, 2017 | |||||
Total number of issued shares (excluding treasury stock): | 1,802,279,069 shares | |||||
Total number of treasury stock: | 9,149,361 shares |
November 1, 2017
To: | Shareholders of Honda Motor Co., Ltd. | |
From: | Honda Motor Co., Ltd. | |
1-1, Minami-Aoyama2-chome, | ||
Minato-ku, Tokyo,107-8556 | ||
Takahiro Hachigo | ||
President and Representative Director |
Notice Concerning Purchase of the Company’s Own Shares through ToSTNeT-3
The Board of Directors of Honda Motor Co., Ltd. (the “Company”), at its meeting held on November 1, 2017, resolved that the Company will purchase its own shares pursuant to Article 459, Paragraph 1 of the Company Law and Article 33 of the Company’s Articles of Incorporation. The Company determined the specific method of the acquisition as follows.
Particulars
1. | Method of acquisition |
The Company will delegate the purchase of own shares through the Tokyo Stock Exchange Trading NetworkOff-Auction Own Share Repurchase Trading System(ToSTNEeT-3) on the Tokyo Stock Exchange at 8:45 a.m. on November 2, 2017, at a price of 3,576 yen per share, which is the closing price (including the last special quote) of the Company shares on November 1, 2017. The purchase will not be conducted by any other trading system or at any other trading time.
The purchase order will be valid only for the time designated for the transactions.
2. | Details of acquisition |
(1) | Class of shares to be acquired: |
Shares of common stock
(2) | Total number of shares to be acquired: |
Up to 18,000,000 shares
(3) | Announcement of acquisition results: |
The results of the acquisition will be announced after the completion of the transaction at 8:45 a.m. on November 2, 2017.
Note 1: | The total number of shares to be acquired will not be changed. Depending on market conditions and other factors, a part or all of the transaction may not be performed. |
Note 2: | The purchase will be made based on selling orders corresponding to the number of shares to be acquired. |
Reference: | Details of the resolution at the meeting of the Board of Directors held on November 1, 2017 |
(1) | Class of shares to be acquired: |
Shares of common stock
(2) | Total number of shares to be acquired: |
Up to 24,000,000 shares (1.3 % of the total number of issued shares (excluding treasury stock))
(3) | Total amount of shares to be acquired: |
Up to 90 billion yen
(4) | Period of acquisition: |
Starting on November 2, 2017 and ending on January 31, 2018
(5) | Method of acquisition: |
Market purchases on the Tokyo Stock Exchange
1. | Purchases through the Tokyo Stock Exchange Trading NetworkOff-Auction Own Share Repurchase Trading System(ToSTNeT-3) |
2. | Market purchases based on discretionary investment contracts regarding acquisition of own shares |
Notice Concerning Result of Acquisition of the Company’s Own Shares through ToSTNeT-3
In respect of the acquisition of own shares notified by Honda Motor Co., Ltd. (the “Company”) on November 1, 2017, the Company has purchased its own shares as follows.
Particulars
1. | Reason for acquisition of own shares |
The Company acquired its own shares for the purpose, among others, of improving efficiency of its capital structure and implementing a flexible capital strategy.
2. | Details of acquisition |
(1) | Class of shares acquired: |
Shares of common stock
(2) | Total number of shares acquired: |
16,353,400 shares
(3) | Total amount of shares acquired: |
58,479,758,400 yen
(4) | Date of the acquisition: |
November 2, 2017
(5) | Method of acquisition: |
Purchases through the Tokyo Stock Exchange Trading NetworkOff-Auction Own Share Repurchase Trading System(ToSTNeT-3) on the Tokyo Stock Exchange
Reference: | Details of the resolution at the meeting of the Board of Directors held on November 1, 2017 |
(1) | Class of shares to be acquired: |
Shares of common stock
(2) | Total number of shares to be acquired: |
Up to 24,000,000 shares (1.3 % of the issued shares (excluding treasury stock))
(3) | Total amount of shares to be acquired: |
Up to 90 billion yen
(4) | Period of acquisition: |
Starting on November 2, 2017 and ending on January 31, 2018
(5) | Method of acquisition: |
Market purchases on the Tokyo Stock Exchange
1. | Purchases through the Tokyo Stock Exchange Trading NetworkOff-Auction Own Share Repurchase Trading System(ToSTNeT-3) |
2. | Market purchases based on discretionary investment contracts regarding acquisition of own shares |
Progress as of November 2, 2017
Total number of shares acquired: | 16,353,400 shares | |
Total amount of shares acquired: | 58,479,758,400 yen |
Honda Breaks Ground for New Motorcycle Production Plant in Bangladesh
DHAKA, Bangladesh, November 5, 2017 — Bangladesh Honda Private Limited (BHL), Honda’s motorcycle business joint venture in Bangladesh, has decided to build a new motorcycle production plant to expand its production and sales volume and today held a groundbreaking ceremony to mark the start of construction in Munshiganj District, Dhaka Division in Bangladesh.
For details, please refer to the website of Honda Motor Co., Ltd.
http://world.honda.com/worldnews/2017/c171106New-Motorcycle-Plant-Bangladesh.html