Honda Motor (HMC) 6-K Current report (foreign)

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 MAY 2020

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):  ☐

Contents

Exhibit 1:

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/ Masao Kawaguchi

Masao Kawaguchi

General Manager

Finance Division

Honda Motor Co., Ltd.

Date: May 14, 2020

May 12, 2020

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL FOURTH QUARTER AND

THE FISCAL YEAR ENDED MARCH 31, 2020

Tokyo, May 12, 2020 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2020.

Fourth Quarter Results

The spread of coronavirus disease 2019(COVID-19) have caused the global economic slowdown and also have affected Honda’s consolidated financial results for the three months ended March 31, 2020.

Consolidated sales revenue for the three months ended March 31, 2020 decreased by 14.6%, to JPY 3,458.0 billion from the same period last year, due mainly to decreased sales revenue in Automobile business operations, which was partially offset by increased sales revenue in Financial services business operations. Operating loss was JPY 5.6 billion, a decrease of JPY 47.9 billion from the same period last year, due mainly to a decrease in profit attributable to decreased sales revenue and model mix, which was partially offset by continuing cost reduction as well as decreased selling, general and administrative expenses. Profit before income taxes decreased by 96.6%, to JPY 3.7 billion from the same period last year. Loss for the period attributable to owners of the parent was JPY 29.5 billion, an increase of JPY 16.5 billion from the same period last year.

Loss per share attributable to owners of the parent for the quarter amounted to JPY 17.01, an increase of JPY 9.61 from the corresponding period last year. One Honda American Depository Share represents one common share.

Fiscal Year Results

The spread ofCOVID-19 have caused the global economic slowdown and also have affected consolidated financial results for the three months ended March 31, 2020.

Consolidated sales revenue for the fiscal year ended March 31, 2020 decreased by 6.0%, to JPY 14,931.0 billion from the fiscal year ended March 31, 2019, due mainly to decreased sales revenue in Automobile business operations as well as negative foreign currency translation effects, which was partially offset by increased sales revenue in Financial services business operations. Operating profit decreased by 12.8%, to JPY 633.6 billion from the previous fiscal year, due mainly to a decrease in profit attributable to decreased sales revenue and model mix as well as negative foreign currency effects, which was partially offset by continuing cost reduction as well as decreased selling, general and administrative expenses. Profit before income taxes decreased by 19.3%, to JPY 789.9 billion from the previous fiscal year. Profit for the year attributable to owners of the parent decreased by 25.3%, to JPY 455.7 billion from the previous fiscal year.

Earnings per share attributable to owners of the parent for the year amounted to JPY 260.13, a decrease of JPY 85.86 from the previous fiscal year.

- 1 -

Consolidated Statements of Financial Position for the Fiscal Year Ended March 31, 2020

Total assets increased by JPY 42.3 billion, to JPY 20,461.4 billion from March 31, 2019 due mainly to an increase in cash and cash equivalents, equipment on operating leases as well as property, plant and equipment which includesright-of-use assets through the adoption of IFRS 16, despite decreased foreign currency translation effects. Total liabilities increased by JPY 322.1 billion, to JPY 12,175.4 billion from March 31, 2019 due mainly to an increase in financing liabilities as well as other financial liabilities which includes lease liabilities through the adoption of IFRS 16, despite decreased foreign currency translation effects. Total equity decreased by JPY 279.7 billion, to JPY 8,286.0 billion from March 31, 2019 due mainly to a decrease attributable to acquisition of the Company’s own shares as well as foreign currency translation effects, despite an increase in retained earnings attributable to profit for the period.

Consolidated Statements of Cash Flows for the Fiscal Year Ended March 31, 2020

Consolidated cash and cash equivalents on March 31, 2020 increased by JPY 178.2 billion from March 31, 2019, to JPY 2,672.3 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the previous fiscal year, are as follows:

Net cash provided by operating activities amounted to JPY 979.4 billion of cash inflows. Cash inflows from operating activities increased by JPY 203.4 billion compared with the previous fiscal year, due mainly to a decrease in receivables from financial services, despite increased payments for parts and raw materials.

Net cash used in investing activities amounted to JPY 619.4 billion of cash outflows. Cash outflows from investing activities increased by JPY 41.9 billion compared with the previous fiscal year, due mainly to increased payments for additions to and internally developed intangible assets as well as decreased proceeds from sales and redemptions of other financial assets, which was partially offset by decreased payments for additions to property, plant and equipment.

Net cash used in financing activities amounted to JPY 87.4 billion of cash outflows. Cash outflows from financing activities increased by JPY 110.3 billion compared with the previous fiscal year, due mainly to increased repayments of financing liabilities as well as purchases of treasury stock.

- 2 -

Forecasts for the Fiscal Year Ending March 31, 2021

Amid restrictions on movement and activity in many countries due to the spread ofCOVID-19, the situation of stagnant consumer consumption and corporate activities or business operations continues.

Honda’s first priority is the safety of our stakeholders, including customers, suppliers and employees. Honda is taking appropriate measures to prevent the spread ofCOVID-19 in accordance with government policies in each country where Honda conducts business. Honda is continuing to focus on our activity to minimize the impacts on our stakeholders and its business operations.

Under these circumstances, it is difficult to predict whenCOVID-19 will subside and how situations in each country and region will develop, so that the market trends and economic conditions are expected to remain uncertain.

Honda is currently unable to provide a reasonably calculated forecast of the consolidated financial results for the fiscal year ending March 31, 2021, due to impacts relating to the spread ofCOVID-19. Honda will provide the forecasts of the consolidated financial results for the fiscal year ending March 31, 2021 as soon as they become available.

Dividend per Share of Common Stock

Fiscal fourth quarter dividend is JPY 28 per share of common stock. The total annual dividend per share of common stock for the fiscal year ending March 31, 2020, is JPY 112 per share.

The dividend forecast for the fiscal year ending March 31, 2021 is undetermined, as Honda is currently unable to provide a reasonably calculated forecast of the consolidated financial results for the fiscal year ending March 31, 2021, due to impacts relating to the spread ofCOVID-19.

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.

- 3 -

Basic Rationale for Selection of Accounting Standards

The Company adopted IFRS for the Company’s consolidated financial statements from the year ended March 31, 2015 which have been included in the annual securities report (to be submitted to the Financial Services Agency of Japan) and Form20-F (to be submitted to the U.S. Securities and Exchange Commission), aiming at improving comparability of financial information across international capital markets as well as standardization of financial information and enhancing efficiency of financial reporting of the Company and its consolidated subsidiaries.

- 4 -

[1] Consolidated Statements of Financial Position

March 31, 2019 and 2020

	Yen (millions)
	Mar. 31, 2019			Mar. 31, 2020
Assets
Current assets:
Cash and cash equivalents		2,494,121			2,672,353
Trade receivables		793,245			633,909
Receivables from financial services		1,951,633			1,878,358
Other financial assets		163,274			190,053
Inventories		1,586,787			1,560,568
Other current assets		358,234			365,769
Total current assets		7,347,294			7,301,010
Non-current assets:
Investments accounted for using the equity method		713,039			655,475
Receivables from financial services		3,453,617			3,282,807
Other financial assets		417,149			441,724
Equipment on operating leases		4,448,849			4,626,063
Property, plant and equipment		2,981,840			3,051,704
Intangible assets		744,368			760,434
Deferred tax assets		150,318			132,553
Othernon-current assets		162,648			209,695
Totalnon-current assets		13,071,828			13,160,455
Total assets		20,419,122			20,461,465
Liabilities and Equity
Current liabilities:
Trade payables		1,184,882			958,469
Financing liabilities		3,188,782			3,248,457
Accrued expenses		476,300			449,716
Other financial liabilities		132,910			209,065
Income taxes payable		49,726			43,759
Provisions		348,763			287,175
Other current liabilities		599,761			593,447
Total current liabilities		5,981,124			5,790,088
Non-current liabilities:
Financing liabilities		4,142,338			4,221,229
Other financial liabilities		63,689			303,570
Retirement benefit liabilities		398,803			578,909
Provisions		220,745			238,439
Deferred tax liabilities		727,411			698,868
Othernon-current liabilities		319,222			344,339
Totalnon-current liabilities		5,872,208			6,385,354
Total liabilities		11,853,332			12,175,442
Equity:
Common stock		86,067			86,067
Capital surplus		171,460			171,823
Treasury stock		(177,827	)		(273,940	)
Retained earnings		7,973,637			8,142,948
Other components of equity		214,383			(114,639	)
Equity attributable to owners of the parent		8,267,720			8,012,259
Non-controlling interests		298,070			273,764
Total equity		8,565,790			8,286,023
Total liabilities and equity		20,419,122			20,461,465

- 5 -

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

Consolidated Statements of Income

For the years ended March 31, 2019 and 2020

	Yen (millions)
	Year ended Mar. 31, 2019			Year ended Mar. 31, 2020
Sales revenue		15,888,617			14,931,009
Operating costs and expenses:
Cost of sales		(12,580,949	)		(11,851,659	)
Selling, general and administrative		(1,774,393	)		(1,641,590	)
Research and development		(806,905	)		(804,123	)
Total operating costs and expenses		(15,162,247	)		(14,297,372	)
Operating profit		726,370			633,637
Share of profit of investments accounted for using the equity method		228,827			164,203
Finance income and finance costs:
Interest income		48,618			49,412
Interest expense		(13,217	)		(24,689	)
Other, net		(11,223	)		(32,645	)
Total finance income and finance costs		24,178			(7,922	)
Profit before income taxes		979,375			789,918
Income tax expense		(303,089	)		(279,986	)
Profit for the year		676,286			509,932
Profit for the year attributable to:
Owners of the parent		610,316			455,746
Non-controlling interests		65,970			54,186
	Yen
Earnings per share attributable to owners of the parent
Basic and diluted		345.99			260.13

- 6 -

Consolidated Statements of Comprehensive Income

For the years ended March 31, 2019 and 2020

	Yen (millions)
	Year ended Mar. 31, 2019			Year ended Mar. 31, 2020
Profit for the year		676,286			509,932
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans		(23,745	)		(102,983	)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		(24,046	)		(23,361	)
Share of other comprehensive income of investments accounted for using the equity method		(2,837	)		(1,550	)
Items that may be reclassified subsequently to profit or loss
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		228			279
Exchange differences on translating foreign operations		95,568			(293,201	)
Share of other comprehensive income of investments accounted for using the equity method		(18,847	)		(30,393	)
Total other comprehensive income, net of tax		26,321			(451,209	)
Comprehensive income for the year		702,607			58,723
Comprehensive income for the year attributable to:
Owners of the parent		637,609			24,287
Non-controlling interests		64,998			34,436

- 7 -

Consolidated Statements of Income

For the three months ended March 31, 2019 and 2020

	Yen (millions)
	Three months ended Mar. 31, 2019			Three months ended Mar. 31, 2020
Sales revenue		4,049,117			3,458,060
Operating costs and expenses:
Cost of sales		(3,255,441	)		(2,761,533	)
Selling, general and administrative		(519,892	)		(477,999	)
Research and development		(231,419	)		(224,145	)
Total operating costs and expenses		(4,006,752	)		(3,463,677	)
Operating profit (loss)		42,365			(5,617	)
Share of profit of investments accounted for using the equity method		59,196			14,472
Finance income and finance costs:
Interest income		12,446			10,847
Interest expense		(3,152	)		(9,564	)
Other, net		269			(6,388	)
Total finance income and finance costs		9,563			(5,105	)
Profit before income taxes		111,124			3,750
Income tax expense		(115,653	)		(25,273	)
Profit (loss) for the period		(4,529	)		(21,523	)
Profit (loss) for the period attributable to:
Owners of the parent		(13,023	)		(29,542	)
Non-controlling interests		8,494			8,019
	Yen
Earnings (loss) per share attributable to owners of the parent
Basic and diluted		(7.40	)		(17.01	)

- 8 -

Consolidated Statements of Comprehensive Income

For the three months ended March 31, 2019 and 2020

	Yen (millions)
	Three months ended Mar. 31, 2019			Three months ended Mar. 31, 2020
Profit (loss) for the period		(4,529	)		(21,523	)
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans		(23,745	)		(102,983	)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		1,651			(26,698	)
Share of other comprehensive income of investments accounted for using the equity method		186			(2,254	)
Items that may be reclassified subsequently to profit or loss
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		108			180
Exchange differences on translating foreign operations		65,751			(202,593	)
Share of other comprehensive income of investments accounted for using the equity method		5,071			(7,062	)
Total other comprehensive income, net of tax		49,022			(341,410	)
Comprehensive income for the period		44,493			(362,933	)
Comprehensive income for the period attributable to:
Owners of the parent		30,907			(354,380	)
Non-controlling interests		13,586			(8,553	)

- 9 -

[3] Consolidated Statements of Changes in Equity

For the years ended March 31, 2019 and 2020

	Yen (millions)
	Equity attributable to owners of the parent
	Common stock		Capital surplus		Treasury stock			Retained earnings			Other components of equity			Total			Non-controlling interests			Total equity
Balance as of April 1, 2018		86,067		171,118		(113,271	)		7,611,332			178,292			7,933,538			300,557			8,234,095
Effect of changes in accounting policy									(46,833	)		(208	)		(47,041	)		6			(47,035	)
Effect of hyperinflation									(9,454	)		14,896			5,442						5,442
Adjusted balance as of April 1, 2018		86,067		171,118		(113,271	)		7,555,045			192,980			7,891,939			300,563			8,192,502
Comprehensive income for the year
Profit for the year									610,316						610,316			65,970			676,286
Other comprehensive income, net of tax												27,293			27,293			(972	)		26,321
Total comprehensive income for the year									610,316			27,293			637,609			64,998			702,607
Reclassification to retained earnings									5,890			(5,890	)		—						—
Transactions with owners and other
Dividends paid									(194,271	)					(194,271	)		(66,010	)		(260,281	)
Purchases of treasury stock						(64,557	)								(64,557	)					(64,557	)
Disposal of treasury stock						1									1						1
Share-based payment transactions				342											342						342
Total transactions with owners and other				342		(64,556	)		(194,271	)					(258,485	)		(66,010	)		(324,495	)
Other changes									(3,343	)					(3,343	)		(1,481	)		(4,824	)
Balance as of March 31, 2019		86,067		171,460		(177,827	)		7,973,637			214,383			8,267,720			298,070			8,565,790
Comprehensive income for the year
Profit for the year									455,746						455,746			54,186			509,932
Other comprehensive income, net of tax												(431,459	)		(431,459	)		(19,750	)		(451,209	)
Total comprehensive income for the year									455,746			(431,459	)		24,287			34,436			58,723
Reclassification to retained earnings									(102,437	)		102,437			—						—
Transactions with owners and other
Dividends paid									(196,795	)					(196,795	)		(55,693	)		(252,488	)
Purchases of treasury stock						(96,284	)								(96,284	)					(96,284	)
Disposal of treasury stock						171									171						171
Share-based payment transactions				363											363						363
Equity transactions and others																		(3,049	)		(3,049	)
Total transactions with owners and other				363		(96,113	)		(196,795	)					(292,545	)		(58,742	)		(351,287	)
Other changes									12,797						12,797						12,797
Balance as of March 31, 2020		86,067		171,823		(273,940	)		8,142,948			(114,639	)		8,012,259			273,764			8,286,023

- 10 -

[4] Consolidated Statements of Cash Flows

For the years ended March 31, 2019 and 2020

	Yen (millions)
	Year ended Mar. 31, 2019			Year ended Mar. 31, 2020
Cash flows from operating activities:
Profit before income taxes		979,375			789,918
Depreciation, amortization and impairment losses excluding equipment on operating leases		721,695			699,877
Share of profit of investments accounted for using the equity method		(228,827	)		(164,203	)
Finance income and finance costs, net		(88,608	)		(47,892	)
Interest income and interest costs from financial services, net		(124,076	)		(130,636	)
Changes in assets and liabilities
Trade receivables		9,344			132,702
Inventories		(60,906	)		(59,931	)
Trade payables		(11,816	)		(141,159	)
Accrued expenses		25,372			(4,529	)
Provisions and retirement benefit liabilities		(1,590	)		118
Receivables from financial services		(260,704	)		103,614
Equipment on operating leases		(230,311	)		(270,677	)
Other assets and liabilities		11,045			(20,524	)
Other, net		3,706			10,959
Dividends received		175,244			185,742
Interest received		270,776			288,821
Interest paid		(150,162	)		(162,263	)
Income taxes paid, net of refunds		(263,569	)		(230,522	)
Net cash provided by operating activities		775,988			979,415
Cash flows from investing activities:
Payments for additions to property, plant and equipment		(420,768	)		(370,195	)
Payments for additions to and internally developed intangible assets		(187,039	)		(231,063	)
Proceeds from sales of property, plant and equipment and intangible assets		20,765			17,638
Payments for acquisitions of subsidiaries, net of cash and cash equivalents acquired		—			(3,047	)
Payments for acquisitions of investments accounted for using the equity method		(2,401	)		(14,584	)
Payments for acquisitions of other financial assets		(506,431	)		(282,806	)
Proceeds from sales and redemptions of other financial assets		515,670			265,980
Other, net		2,649			(1,404	)
Net cash used in investing activities		(577,555	)		(619,481	)
Cash flows from financing activities:
Proceeds from short-term financing liabilities		8,435,249			9,037,608
Repayments of short-term financing liabilities		(8,213,698	)		(9,039,601	)
Proceeds from long-term financing liabilities		1,900,257			2,021,173
Repayments of long-term financing liabilities		(1,726,097	)		(1,676,504	)
Dividends paid to owners of the parent		(194,271	)		(196,795	)
Dividends paid tonon-controlling interests		(66,872	)		(54,280	)
Purchases and sales of treasury stock, net		(64,556	)		(96,113	)
Repayments of lease liabilities		(47,088	)		(78,659	)
Other, net		—			(4,240	)
Net cash provided by (used in) financing activities		22,924			(87,411	)
Effect of exchange rate changes on cash and cash equivalents		16,276			(94,291	)
Net change in cash and cash equivalents		237,633			178,232
Cash and cash equivalents at beginning of year		2,256,488			2,494,121
Cash and cash equivalents at end of year		2,494,121			2,672,353

- 11 -

[5] Assumptions for Going Concern

None

- 12 -

[6] Notes to Consolidated Financial Statements

[A] Changes in accounting policies

IFRS 16 “Leases”

Honda has adopted IFRS 16 “Leases” with a date of initial application of April 1, 2019. Honda used the modified retrospective approach, under which the cumulative effect of initial application was recognized as an adjustment to the opening balance of equity at the date of initial application. Therefore, the comparative information has not been restated and continues to be reported under the previous accounting policy.

Previously, Honda determined at contract inception whether an arrangement was or contained a lease under IAS 17 “Leases” and IFRIC 4 “Determining whether an Arrangement contains a Lease”. Honda assesses whether a contract is or contains a lease under IFRS 16 on or after April 1, 2019. Honda applied the practical expedient to grandfather the assessment of which a contract was or contained a lease when applying IFRS 16. Therefore, Honda applied IFRS 16 to all contracts entered into prior to April 1, 2019 and identified as leases under IAS 17 and IFRIC 4.

IFRS 16 introduced a singleon-balance lease accounting model for lessees. A lessee recognizes aright-of-use asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments. In addition, expenses related to leases change from straight-line operating lease expenses to depreciation charge forright-of-use assets and interest expense on lease liabilities. At transition, Honda recognized the lease liabilities for leases previously classified as an operating lease under IAS 17, and measured these liabilities at the present value of the remaining lease payments, discounted using Honda’s incremental borrowing rate as of April 1, 2019. The weighted average rate applied was 1.19%. Theright-of-use assets were measured at the amount equal to the lease liability, adjusted by the amount of any prepaid or accrued lease payments relating to that lease recognized in the statement of financial position immediately before the date of initial application. In addition, Honda applied the following practical expedients when applying IFRS 16.

• Applied a single discount rate to a portfolio of leases with reasonably similar characteristics;

• Adjusted theright-of-use assets by the amount of any provision for onerous leases under IAS 37 “Provisions, Contingent Liabilities and Contingent Assets” recognized immediately before the date of initial application as an alternative to performing an impairment review; and

• Excluded initial direct costs from the measurement of theright-of-use assets at the date of initial application.

In the consolidated statements of financial position, lease liabilities are included in other financial liabilities andright-of-use assets are included in property, plant and equipment.

Honda recognized additional lease liabilities of JPY 272,232 million and total assets, mainlyright-of-use assets were recognized approximately in the same amounts in the consolidated statements of financial position as of April 1, 2019.

The difference between the future minimum lease payments undernon-cancelable operating leases as of March 31, 2019 disclosed in the consolidated financial statements immediately before the date of initial application, and the lease liabilities recognized as of April 1, 2019, is as follows:

	Yen (millions)
Future minimum lease payments undernon-cancelable operating leases as of March 31, 2019		115,634
Discounted using the incremental borrowing rate as of April 1, 2019		108,147
Add: Finance lease obligations		62,308
Add: Cancelable operating leases		11,612
Add: Extension options reasonably certain to be exercised		152,473
Lease liabilities recognized as of April 1, 2019		334,540

- 13 -

[B] Segment Information

Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Life creation 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 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 (SxS) and relevant parts	Research and development Manufacturing Sales and related services
Automobile Business	Automobiles and relevant parts	Research and development Manufacturing Sales and related services
Financial Services Business	Financial services	Retail loan and lease related to Honda products Others
Life Creation and Other Businesses*	Power products and relevant parts, and others	Research and development Manufacturing Sales and related services Others

Explanatory note:

* Power product business has been renamed Life creation business from April 1, 2019. Honda expands the concept of our Power product business and continues pursuing it under a new concept of “Life Creation Business”. This renaming of the business represents our intention to evolve our business as a function to create new value for “mobility” and “daily lives”, which includes our existing Power product business as well as new businesses for the future, including energy business.

Segment information based on products and services

As of and for the year ended March 31, 2019

	Yen (millions)
	Motorcycle Business		Automobile Business		Financial Services Business		Life Creation and Other Businesses			Segment Total		Reconciling Items			Consolidated
Sales revenue:
External customers		2,100,155		11,072,117		2,365,355		350,990			15,888,617		—			15,888,617
Intersegment		—		215,647		14,687		26,266			256,600		(256,600	)		—
Total		2,100,155		11,287,764		2,380,042		377,256			16,145,217		(256,600	)		15,888,617
Segment profit (loss)		291,642		209,694		235,945		(10,911	)		726,370		—			726,370
Segment assets		1,523,817		7,923,802		10,236,066		328,870			20,012,555		406,567			20,419,122
Depreciation and amortization		66,680		603,124		784,683		14,198			1,468,685		—			1,468,685
Capital expenditures		74,024		525,419		2,041,735		16,074			2,657,252		—			2,657,252
As of and for the year ended March 31, 2020
	Yen (millions)
	Motorcycle Business		Automobile Business		Financial Services Business		Life Creation and Other Businesses			Segment Total		Reconciling Items			Consolidated
Sales revenue:
External customers		2,059,335		9,959,080		2,586,965		325,629			14,931,009		—			14,931,009
Intersegment		—		235,558		13,972		25,025			274,555		(274,555	)		—
Total		2,059,335		10,194,638		2,600,937		350,654			15,205,564		(274,555	)		14,931,009
Segment profit (loss)		285,668		153,323		219,704		(25,058	)		633,637		—			633,637
Segment assets		1,483,888		7,821,499		10,282,136		354,472			19,941,995		519,470			20,461,465
Depreciation and amortization		67,512		555,153		823,996		14,742			1,461,403		—			1,461,403
Capital expenditures		93,871		498,260		2,248,597		17,611			2,858,339		—			2,858,339

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For the three months ended March 31, 2019

	Yen (millions)
	Motorcycle Business		Automobile Business			Financial Services Business		Life Creation and Other Businesses			Segment Total		Reconciling Items			Consolidated
Sales revenue:
External customers		489,415		2,843,998			619,070		96,634			4,049,117		—			4,049,117
Intersegment		—		68,855			3,485		6,426			78,766		(78,766	)		—
Total		489,415		2,912,853			622,555		103,060			4,127,883		(78,766	)		4,049,117
Segment profit (loss)		44,931		(53,040	)		59,199		(8,725	)		42,365		—			42,365

For the three months ended March 31, 2020

	Yen (millions)
	Motorcycle Business		Automobile Business			Financial Services Business		Life Creation and Other Businesses			Segment Total			Reconciling Items			Consolidated
Sales revenue:
External customers		473,565		2,267,961			625,013		91,521			3,458,060			—			3,458,060
Intersegment		—		70,772			3,346		5,708			79,826			(79,826	)		—
Total		473,565		2,338,733			628,359		97,229			3,537,886			(79,826	)		3,458,060
Segment profit (loss)		63,486		(75,677	)		22,943		(16,369	)		(5,617	)		—			(5,617	)

Explanatory notes:

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

2. Reconciling items include elimination of intersegment transactions and balances as well as unallocated corporate assets. Unallocated corporate assets, included in reconciling items as of March 31, 2019 and 2020 amounted to JPY 682,842 million and JPY 787,022 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

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

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

As of and for the year ended March 31, 2019

	Yen (millions)
	Japan		North America		Europe			Asia		Other Regions		Total		Reconciling Items			Consolidated
Sales revenue:
External customers		2,394,584		8,526,733		652,335			3,557,338		757,627		15,888,617		—			15,888,617
Inter-geographic areas		2,453,729		497,231		275,089			714,901		6,826		3,947,776		(3,947,776	)		—
Total		4,848,313		9,023,964		927,424			4,272,239		764,453		19,836,393		(3,947,776	)		15,888,617
Operating profit (loss)		10		299,750		(6,620	)		404,220		22,616		719,976		6,394			726,370
													��
Assets		4,546,640		11,418,194		694,606			3,024,357		621,259		20,305,056		114,066			20,419,122
Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets		2,695,603		4,740,675		65,500			691,211		144,716		8,337,705		—			8,337,705

As of and for the year ended March 31, 2020

	Yen (millions)
	Japan			North America		Europe		Asia		Other Regions		Total		Reconciling Items			Consolidated
Sales revenue:
External customers		2,307,523			8,167,345		561,856		3,207,470		686,815		14,931,009		—			14,931,009
Inter-geographic areas		2,115,411			389,474		210,713		652,231		6,825		3,374,654		(3,374,654	)		—
Total		4,422,934			8,556,819		772,569		3,859,701		693,640		18,305,663		(3,374,654	)		14,931,009
Operating profit (loss)		(28,162	)		305,315		14,996		319,565		37,289		649,003		(15,366	)		633,637
Assets		4,889,920			11,375,801		689,158		2,851,027		518,445		20,324,351		137,114			20,461,465
Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets		3,003,416			4,755,072		58,735		658,397		109,046		8,584,666		—			8,584,666

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For the three months ended March 31, 2019

	Yen (millions)
	Japan			North America		Europe			Asia		Other Regions			Total		Reconciling Items			Consolidated
Sales revenue:
External customers		643,905			2,207,263		190,071			819,335		188,543			4,049,117		—			4,049,117
Inter-geographic areas		562,434			121,873		70,515			177,751		1,408			933,981		(933,981	)		—
Total		1,206,339			2,329,136		260,586			997,086		189,951			4,983,098		(933,981	)		4,049,117
Operating profit (loss)		(85,486	)		85,911		(15,202	)		60,949		(10,129	)		36,043		6,322			42,365
For the three months ended March 31, 2020
	Yen (millions)
	Japan			North America		Europe			Asia		Other Regions			Total		Reconciling Items			Consolidated
Sales revenue:
External customers		592,951			1,908,290		135,260			674,688		146,871			3,458,060		—			3,458,060
Inter-geographic areas		491,668			103,840		54,251			151,447		1,586			802,792		(802,792	)		—
Total		1,084,619			2,012,130		189,511			826,135		148,457			4,260,852		(802,792	)		3,458,060
Operating profit (loss)		(66,228	)		24,579		3,992			44,654		1,734			8,731		(14,348	)		(5,617	)

Explanatory notes:

1. Major countries in each geographic area:

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

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

3. Reconciling items include elimination of inter-geographic transactions and balances as well as unallocated corporate assets. Unallocated corporate assets, included in reconciling items as of March 31, 2019 and 2020 amounted to JPY 682,842 million and JPY 787,022 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

[C] Information about per common share

Equity per share attributable to owners of the parent as of March 31, 2019 and 2020 are calculated based on the following information.

	2019		2020
Equity attributable to owners of the parent (millions of yen)		8,267,720		8,012,259
The number of shares outstanding at the end of the year (excluding treasury stock) (shares)		1,759,561,385		1,726,609,786
Equity per share attributable to owners of the parent (yen)		4,698.74		4,640.46

Earnings per share attributable to owners of the parent for the years ended March 31, 2019 and 2020 are calculated based on the following information. There were no significant potentially dilutive common shares outstanding for the years ended March 31, 2019 and 2020.

	2019		2020
Profit for the year attributable to owners of the parent (millions of yen)		610,316		455,746
Weighted average number of common shares outstanding, basic (shares)		1,763,983,221		1,752,006,211
Basic earnings per share attributable to owners of the parent (yen)		345.99		260.13

[D] Significant Subsequent Event

None

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[E] Other

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.

Impact to Europe related to changes of the global automobile production network and capability

In February 2019, the Company announced making changes throughout the global automobile production network based on the direction to “optimize production allocation and production capacity on a global basis”. As a part of the changes, the Company announced mainly to begin consultation with associates in the direction toward discontinuing automobile production at its certain subsidiaries in Europe in 2021.

The Company and its certain subsidiaries recognized JPY 68,092 million of the loss including the impairment loss of property, plant and equipment, employee benefits and other expense. Of the total loss and expense, JPY 56,590 million is included in cost of sales and JPY 11,502 million is included in selling, general and administrative in the consolidated statements of income for the year ended March 31, 2019.

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