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

No.1-7628

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

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

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF FEBRUARY 2022

COMMISSION FILE NUMBER: 1-07628

HONDA GIKEN KOGYO KABUSHIKI KAISHA

(Name of registrant)

HONDA MOTOR CO., LTD.

(Translation of registrant’s name into English)

1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo 107-8556, Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  ☒    Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

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: February 9, 2022

February 9, 2022

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL THIRD QUARTER AND

THE FISCAL NINE-MONTH PERIOD ENDED DECEMBER 31, 2021

Tokyo, February 9, 2022 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal third quarter and the fiscal nine-month period ended December 31, 2021.

Nine Months Results

While the global economy which had slowed down due to the spread of coronavirus disease 2019 (COVID-19) has continued to be on a recovery track, it has still continued to affect Honda’s consolidated financial results for the nine months ended December 31, 2021.

Resulting from travel restriction measures in certain countries or regions, the production activities of some of Honda’s production bases were also affected mainly due to restrictions on employees’ commute to the workplaces and delays in the supply of parts within the supply chain. Some dealers were obliged to suspend business, shorten business hours, or reduce services such as inspections and repairs. However, there is no significant impact on Honda’s consolidated financial results for the nine months ended December 31, 2021.

Honda’s consolidated sales revenue for the nine months ended December 31, 2021 increased by 11.8%, to JPY 10,677.0 billion from the same period last year, due mainly to increased sales revenue in Motorcycle business and Financial services business operations as well as positive foreign currency translation effects. Operating profit increased by 50.3%, to JPY 671.6 billion from the same period last year, due mainly to an increase in profit attributable to increased sales revenue and model mix as well as decreased selling, general and administrative expenses. Profit before income taxes increased by 28.3%, to JPY 845.2 billion from the same period last year. Profit for the period attributable to owners of the parent increased by 31.1%, to JPY 582.1 billion from the same period last year.

Earnings per share attributable to owners of the parent for the period amounted to JPY 337.92, an increase of JPY 80.71 from the corresponding period last year. One Honda American Depository Share represents one common share.

Third Quarter Results

Consolidated sales revenue for the three months ended December 31, 2021 decreased by 2.2%, to JPY 3,688.7 billion from the same period last year, due mainly to decreased sales revenue in Automobile business operations. Operating profit decreased by 17.4%, to JPY 229.4 billion from the same period last year, due mainly to a decrease in profit attributable to decreased sales revenue and model mix. Profit before income taxes decreased by 26.3%, to JPY 284.8 billion from the same period last year. Profit for the period attributable to owners of the parent decreased by 32.1%, to JPY 192.9 billion from the same period last year.

Earnings per share attributable to owners of the parent for the period amounted to JPY 112.42, a decrease of JPY 52.09 from the corresponding period last year.

—1—

Consolidated Statements of Financial Position for the Fiscal Nine Months Ended December 31, 2021

Total assets increased by JPY 328.7 billion, to JPY 22,249.7 billion from March 31, 2021 due mainly to increased other financial assets as well as positive foreign currency translation effects, which was partially offset by a decrease in receivables from financial service as well as cash and cash equivalents. Total liabilities decreased by JPY 334.7 billion, to JPY 12,213.4 billion from March 31, 2021 due mainly to a decrease in financing liabilities as well as provisions. Total equity increased by JPY 663.4 billion, to JPY 10,036.3 billion from March 31, 2021 due mainly to increased retained earnings attributable to profit for the period.

Consolidated Statements of Cash Flows for the Fiscal Nine Months Ended December 31, 2021

Consolidated cash and cash equivalents on December 31, 2021 decreased by JPY 67.5 billion from March 31, 2021, to JPY 2,690.4 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the same period last year, are as follows:

Net cash provided by operating activities amounted to JPY 947.8 billion of cash inflows. Cash inflows from operating activities increased by JPY 121.6 billion from the same period last year, due mainly to increased cash received from customers, which was partially offset by increased payments for parts and raw materials.

Net cash used in investing activities amounted to JPY 381.7 billion of cash outflows. Cash outflows from investing activities decreased by JPY 281.8 billion from the same period last year, due mainly to decreased payments for acquisitions of investments accounted for using the equity method as well as increased proceeds from sales and redemptions of other financial assets.

Net cash used in financing activities amounted to JPY 692.1 billion of cash outflows. Cash outflows from financing activities increased by JPY 773.6 billion from the same period last year, due mainly to decreased proceeds from financing liabilities and increased dividends paid.

—2—

Forecasts for the Fiscal Year Ending March 31, 2022

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2022, Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2022

	Yen (billions)		Changes from FY 2021
Sales revenue		14,550.0		+ 10.5	%
Operating profit		800.0		+ 21.2	%
Profit before income taxes		1,020.0		+ 11.6	%
Profit for the year		720.0		+ 3.5	%
Profit for the year attributable to owners of the parent		670.0		+ 1.9	%
	Yen
Earnings per share attributable to owners of the parent
Basic and diluted		389.54

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 111 for the full year ending March 31, 2022.

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, 2022 from the previous year are as follows.

	Yen (billions)
Revenue, model mix, etc.		+ 74.7
Cost reduction, the effect of raw material cost fluctuations, etc.		- 35.0
SG&A expenses		+ 9.0
R&D expenses		- 50.0
Currency effect		+ 141.0
Operating profit compared with fiscal year ended March 31, 2021		+ 139.7
Share of profit of investments accounted for using the equity method		- 62.7
Finance income and finance costs		+ 28.8
Profit before income taxes compared with fiscal year ended March 31, 2021		+ 105.9

Dividend per Share of Common Stock

The interim dividend for the fiscal year ending March 31, 2022, was JPY 55 per share of common stock. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2022, is JPY 110 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.

—3—

[1] Condensed Consolidated Statements of Financial Position

March 31, 2021 and December 31, 2021

	Yen (millions)
	Mar. 31, 2021			Dec. 31, 2021
Assets
Current assets:
Cash and cash equivalents		2,758,020			2,690,451
Trade receivables		801,814			716,296
Receivables from financial services		1,794,654			1,613,208
Other financial assets		295,307			407,358
Inventories		1,545,600			1,799,424
Other current assets		383,696			368,076
Total current assets		7,579,091			7,594,813
Non-current assets:
Investments accounted for using the equity method		891,002			902,008
Receivables from financial services		3,619,896			3,674,233
Other financial assets		628,533			765,484
Equipment on operating leases		4,919,916			5,075,682
Property, plant and equipment		3,021,514			2,971,461
Intangible assets		818,763			822,570
Deferred tax assets		99,552			100,540
Other non-current assets		342,763			342,988
Total non-current assets		14,341,939			14,654,966
Total assets		21,921,030			22,249,779
Liabilities and Equity
Current liabilities:
Trade payables		1,088,061			1,033,941
Financing liabilities		3,005,624			3,103,481
Accrued expenses		415,106			297,558
Other financial liabilities		182,145			149,109
Income taxes payable		47,793			55,632
Provisions		362,151			262,373
Other current liabilities		614,577			616,044
Total current liabilities		5,715,457			5,518,138
Non-current liabilities:
Financing liabilities		4,715,361			4,486,260
Other financial liabilities		280,809			279,399
Retirement benefit liabilities		358,532			362,516
Provisions		278,890			252,876
Deferred tax liabilities		842,001			942,801
Other non-current liabilities		357,141			371,472
Total non-current liabilities		6,832,734			6,695,324
Total liabilities		12,548,191			12,213,462
Equity:
Common stock		86,067			86,067
Capital surplus		172,049			185,554
Treasury stock		(273,786	)		(328,443	)
Retained earnings		8,901,266			9,294,994
Other components of equity		196,710			532,690
Equity attributable to owners of the parent		9,082,306			9,770,862
Non-controlling interests		290,533			265,455
Total equity		9,372,839			10,036,317
Total liabilities and equity		21,921,030			22,249,779

—4—

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

Condensed Consolidated Statements of Income

For the nine months ended December 31, 2020 and 2021

	Yen (millions)
	Nine months ended Dec. 31, 2020			Nine months ended Dec. 31, 2021
Sales revenue		9,546,713			10,677,013
Operating costs and expenses:
Cost of sales		(7,594,521	)		(8,486,750	)
Selling, general and administrative		(1,004,211	)		(955,247	)
Research and development		(500,981	)		(563,371	)
Total operating costs and expenses		(9,099,713	)		(10,005,368	)
Operating profit		447,000			671,645
Share of profit of investments accounted for using the equity method		204,570			157,034
Finance income and finance costs:
Interest income		13,572			18,737
Interest expense		(8,563	)		(9,669	)
Other, net		2,128			7,491
Total finance income and finance costs		7,137			16,559
Profit before income taxes		658,707			845,238
Income tax expense		(186,809	)		(229,035	)
Profit for the period		471,898			616,203
Profit for the period attributable to:
Owners of the parent		444,102			582,169
Non-controlling interests		27,796			34,034
	Yen
Earnings per share attributable to owners of the parent
Basic and diluted		257.21			337.92

—5—

Condensed Consolidated Statements of Comprehensive Income

For the nine months ended December 31, 2020 and 2021

	Yen (millions)
	Nine months ended Dec. 31, 2020			Nine months ended Dec. 31, 2021
Profit for the period		471,898			616,203
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans		—			—
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		64,000			78,760
Share of other comprehensive income of investments accounted for using the equity method		613			113
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		127			(97	)
Exchange differences on translating foreign operations		(114,008	)		219,152
Share of other comprehensive income of investments accounted for using the equity method		5,772			43,385
Total other comprehensive income, net of tax		(43,496	)		341,313
Comprehensive income for the period		428,402			957,516
Comprehensive income for the period attributable to:
Owners of the parent		394,202			918,110
Non-controlling interests		34,200			39,406

—6—

Condensed Consolidated Statements of Income

For the three months ended December 31, 2020 and 2021

	Yen (millions)
	Three months ended Dec. 31, 2020			Three months ended Dec. 31, 2021
Sales revenue		3,771,569			3,688,785
Operating costs and expenses:
Cost of sales		(2,940,964	)		(2,924,975	)
Selling, general and administrative		(381,019	)		(329,644	)
Research and development		(171,851	)		(204,717	)
Total operating costs and expenses		(3,493,834	)		(3,459,336	)
Operating profit		277,735			229,449
Share of profit of investments accounted for using the equity method		102,274			49,788
Finance income and finance costs:
Interest income		4,695			7,657
Interest expense		(2,014	)		(3,241	)
Other, net		3,733			1,189
Total finance income and finance costs		6,414			5,605
Profit before income taxes		386,423			284,842
Income tax expense		(87,094	)		(77,240	)
Profit for the period		299,329			207,602
Profit for the period attributable to:
Owners of the parent		284,051			192,960
Non-controlling interests		15,278			14,642
	Yen
Earnings per share attributable to owners of the parent
Basic and diluted		164.51			112.42

—7—

Condensed Consolidated Statements of Comprehensive Income

For the three months ended December 31, 2020 and 2021

	Yen (millions)
	Three months ended Dec. 31, 2020			Three months ended Dec. 31, 2021
Profit for the period		299,329			207,602
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans		—			—
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		45,754			20,742
Share of other comprehensive income of investments accounted for using the equity method		1,040			(1,207	)
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		13			(79	)
Exchange differences on translating foreign operations		(36,418	)		182,103
Share of other comprehensive income of investments accounted for using the equity method		5,297			16,709
Total other comprehensive income, net of tax		15,686			218,268
Comprehensive income for the period		315,015			425,870
Comprehensive income for the period attributable to:
Owners of the parent		296,866			403,390
Non-controlling interests		18,149			22,480

—8—

[3] Condensed Consolidated Statements of Changes in Equity

For the nine months ended December 31, 2020

	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, 2020		86,067		171,823		(273,940	)		8,142,948			(114,639	)		8,012,259			273,764			8,286,023
Comprehensive income for the period
Profit for the period									444,102						444,102			27,796			471,898
Other comprehensive income, net of tax												(49,900	)		(49,900	)		6,404			(43,496	)
Total comprehensive income for the period									444,102			(49,900	)		394,202			34,200			428,402
Reclassification to retained earnings									353			(353	)		—						—
Transactions with owners and other
Dividends paid									(100,181	)					(100,181	)		(40,766	)		(140,947	)
Purchases of treasury stock						(4	)								(4	)					(4	)
Disposal of treasury stock						124									124						124
Share-based payment transactions				203											203						203
Equity transactions and others																		2,251			2,251
Total transactions with owners and other				203		120			(100,181	)					(99,858	)		(38,515	)		(138,373	)
Balance as of December 31, 2020		86,067		172,026		(273,820	)		8,487,222			(164,892	)		8,306,603			269,449			8,576,052

For the nine months ended December 31, 2021

	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, 2021		86,067		172,049			(273,786	)		8,901,266			196,710		9,082,306			290,533			9,372,839
Comprehensive income for the period
Profit for the period										582,169					582,169			34,034			616,203
Other comprehensive income, net of tax													335,941		335,941			5,372			341,313
Total comprehensive income for the period										582,169			335,941		918,110			39,406			957,516
Reclassification to retained earnings										(39	)		39		—						—
Transactions with owners and other
Dividends paid										(188,402	)				(188,402	)		(43,148	)		(231,550	)
Purchases of treasury stock							(62,756	)							(62,756	)					(62,756	)
Disposal of treasury stock							442								442						442
Share-based payment transactions				(174	)										(174	)					(174	)
Equity transactions and others				13,679			7,657								21,336			(21,336	)		—
Total transactions with owners and other				13,505			(54,657	)		(188,402	)				(229,554	)		(64,484	)		(294,038	)
Balance as of December 31, 2021		86,067		185,554			(328,443	)		9,294,994			532,690		9,770,862			265,455			10,036,317

—9—

[4] Condensed Consolidated Statements of Cash Flows

For the nine months ended December 31, 2020 and 2021

	Yen (millions)
	Nine months ended Dec. 31, 2020			Nine months ended Dec. 31, 2021
Cash flows from operating activities:
Profit before income taxes		658,707			845,238
Depreciation, amortization and impairment losses excluding equipment on operating leases		444,545			457,989
Share of profit of investments accounted for using the equity method		(204,570	)		(157,034	)
Finance income and finance costs, net		52,741			(42,769	)
Interest income and interest costs from financial services, net		(99,425	)		(119,818	)
Changes in assets and liabilities
Trade receivables		6,927			100,704
Inventories		88,067			(200,804	)
Trade payables		78,928			(58,880	)
Accrued expenses		(72,394	)		(136,753	)
Provisions and retirement benefit liabilities		86,077			(131,115	)
Receivables from financial services		(11,553	)		321,333
Equipment on operating leases		(118,989	)		620
Other assets and liabilities		(151,391	)		(35,454	)
Other, net		(608	)		(7,053	)
Dividends received		119,642			110,049
Interest received		177,097			179,173
Interest paid		(83,502	)		(69,296	)
Income taxes paid, net of refunds		(144,107	)		(108,326	)
Net cash provided by operating activities		826,192			947,804
Cash flows from investing activities:
Payments for additions to property, plant and equipment		(227,151	)		(198,762	)
Payments for additions to and internally developed intangible assets		(165,830	)		(126,575	)
Proceeds from sales of property, plant and equipment and intangible assets		4,680			16,057
Payments for acquisitions of subsidiaries, net of cash and cash equivalents acquired		2,230			—
Payments for acquisitions of investments accounted for using the equity method		(110,747	)		—
Proceeds from sales of investments accounted for using the equity method		10,376			—
Payments for acquisitions of other financial assets		(311,873	)		(409,524	)
Proceeds from sales and redemptions of other financial assets		134,639			337,025
Net cash used in investing activities		(663,676	)		(381,779	)
Cash flows from financing activities:
Proceeds from short-term financing liabilities		6,992,681			5,863,983
Repayments of short-term financing liabilities		(6,781,179	)		(6,106,635	)
Proceeds from long-term financing liabilities		1,356,619			1,229,804
Repayments of long-term financing liabilities		(1,304,276	)		(1,328,446	)
Dividends paid to owners of the parent		(100,181	)		(188,402	)
Dividends paid to non-controlling interests		(34,134	)		(41,722	)
Purchases and sales of treasury stock, net		120			(62,314	)
Repayments of lease liabilities		(47,584	)		(58,406	)
Other, net		(555	)		—
Net cash provided by (used in) financing activities		81,511			(692,138	)
Effect of exchange rate changes on cash and cash equivalents		(43,091	)		58,544
Net change in cash and cash equivalents		200,936			(67,569	)
Cash and cash equivalents at beginning of year		2,672,353			2,758,020
Cash and cash equivalents at end of period		2,873,289			2,690,451

—10—

[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 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 condensed consolidated interim financial statements.

Principal products and services, and functions of each segment are as follows:

Segment	Principal products and services	Functions
Motorcycle Business	Motorcycles, all-terrain vehicles (ATVs), side-by-sides (SxS) and relevant parts	Research and development Manufacturing Sales and related services
Automobile Business	Automobiles and relevant parts	Research and development Manufacturing Sales and related services
Financial Services Business	Financial services	Retail loan and lease related to Honda products Others
Life Creation and Other Businesses	Power products and relevant parts, and others	Research and development Manufacturing Sales and related services Others

Segment information based on products and services

As of and for the nine months ended December 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		1,258,173		6,207,728		1,853,641		227,171			9,546,713		—			9,546,713
Intersegment		—		153,209		9,520		14,270			176,999		(176,999	)		—
Total		1,258,173		6,360,937		1,863,161		241,441			9,723,712		(176,999	)		9,546,713
Segment profit (loss)		152,379		52,624		250,581		(8,584	)		447,000		—			447,000
Segment assets		1,382,083		8,061,407		10,280,529		360,515			20,084,534		695,669			20,780,203
Depreciation and amortization		50,324		378,524		617,238		11,484			1,057,570		—			1,057,570
Capital expenditures		28,358		348,446		1,485,375		7,004			1,869,183		—			1,869,183

As of and for the nine months ended December 31, 2021

	Yen (millions)
	Motorcycle Business		Automobile Business		Financial Services Business		Life Creation and Other Businesses			Segment Total		Reconciling Items			Consolidated
Sales revenue:
External customers		1,602,096		6,668,657		2,114,335		291,925			10,677,013		—			10,677,013
Intersegment		—		155,020		2,124		17,041			174,185		(174,185	)		—
Total		1,602,096		6,823,677		2,116,459		308,966			10,851,198		(174,185	)		10,677,013
Segment profit (loss)		232,395		188,547		258,149		(7,446	)		671,645		—			671,645
Segment assets		1,465,871		8,795,380		10,914,940		385,776			21,561,967		687,812			22,249,779
Depreciation and amortization		49,127		381,128		661,252		12,728			1,104,235		—			1,104,235
Capital expenditures		30,189		287,082		1,639,003		10,501			1,966,775		—			1,966,775

—11—

For the three months ended December 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		490,857		2,585,190		614,549		80,973			3,771,569		—			3,771,569
Intersegment		—		52,925		3,097		5,434			61,456		(61,456	)		—
Total		490,857		2,638,115		617,646		86,407			3,833,025		(61,456	)		3,771,569
Segment profit (loss)		72,715		123,127		85,715		(3,822	)		277,735		—			277,735

For the three months ended December 31, 2021

	Yen (millions)
	Motorcycle Business		Automobile Business		Financial Services Business		Life Creation and Other Businesses			Segment Total		Reconciling Items			Consolidated
Sales revenue:
External customers		578,366		2,333,388		671,777		105,254			3,688,785		—			3,688,785
Intersegment		—		55,365		834		6,008			62,207		(62,207	)		—
Total		578,366		2,388,753		672,611		111,262			3,750,992		(62,207	)		3,688,785
Segment profit (loss)		84,258		71,443		81,335		(7,587	)		229,449		—			229,449

Explanatory notes:

1. Intersegment sales revenues are generally made at values that approximate arm’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 December 31, 2020 and 2021 amounted to JPY 931,069 million and JPY 847,711 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 nine months ended December 31, 2020

	Yen (millions)
	Japan			North America		Europe		Asia		Other Regions		Total		Reconciling Items			Consolidated
Sales revenue:
External customers		1,559,844			5,200,322		350,963		2,124,773		310,811		9,546,713		—			9,546,713
Inter-geographic areas		1,189,865			270,594		121,711		329,638		4,509		1,916,317		(1,916,317	)		—
Total		2,749,709			5,470,916		472,674		2,454,411		315,320		11,463,030		(1,916,317	)		9,546,713
Operating profit (loss)		(31,386	)		269,236		18,352		170,069		421		426,692		20,308			447,000
Assets		5,048,475			11,271,264		666,494		2,996,726		484,914		20,467,873		312,330			20,780,203
Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets		3,038,243			4,637,887		58,660		643,185		114,368		8,492,343		—			8,492,343

As of and for the nine months ended December 31, 2021

	Yen (millions)
	Japan		North America		Europe		Asia		Other Regions		Total		Reconciling Items			Consolidated
Sales revenue:
External customers		1,713,992		5,681,155		440,255		2,400,719		440,892		10,677,013		—			10,677,013
Inter-geographic areas		1,506,703		341,172		89,067		491,398		7,479		2,435,819		(2,435,819	)		—
Total		3,220,695		6,022,327		529,322		2,892,117		448,371		13,112,832		(2,435,819	)		10,677,013
Operating profit (loss)		26,663		414,075		17,764		232,250		18,642		709,394		(37,749	)		671,645
Assets		5,250,120		12,310,903		553,219		3,491,191		505,794		22,111,227		138,552			22,249,779
Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets		3,006,685		5,196,501		55,887		667,201		133,948		9,060,222		—			9,060,222

—12—

For the three months ended December 31, 2020

	Yen (millions)
	Japan		North America		Europe		Asia		Other Regions			Total		Reconciling Items			Consolidated
Sales revenue:
External customers		559,587		2,068,582		114,672		892,829		135,899			3,771,569		—			3,771,569
Inter-geographic areas		518,693		99,268		58,881		136,149		1,887			814,878		(814,878	)		—
Total		1,078,280		2,167,850		173,553		1,028,978		137,786			4,586,447		(814,878	)		3,771,569
Operating profit (loss)		43,691		149,920		7,114		79,132		(1,653	)		278,204		(469	)		277,735

For the three months ended December 31, 2021

	Yen (millions)
	Japan		North America		Europe		Asia		Other Regions		Total		Reconciling Items			Consolidated
Sales revenue:
External customers		607,190		1,849,299		122,244		949,803		160,249		3,688,785		—			3,688,785
Inter-geographic areas		514,470		104,766		8,779		181,501		2,340		811,856		(811,856	)		—
Total		1,121,660		1,954,065		131,023		1,131,304		162,589		4,500,641		(811,856	)		3,688,785
Operating profit (loss)		11,614		134,619		4,897		98,383		1,575		251,088		(21,639	)		229,449

Explanatory notes:

1. Major countries in each geographic area:

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

2. Sales revenues between geographic areas are generally made at values that approximate arm’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 December 31, 2020 and 2021 amounted to JPY 931,069 million and JPY 847,711 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

—13—

[B] 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.

—14—