Segment Information | (4) 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 side-by-sides Research and development Automobile Business Automobiles and relevant parts Research and development Financial Services Business Financial services Retail loan and lease related to Life Creation and Other Businesses Power products and relevant parts, and others Research and development (a) Segment Information Segment information as of and for the years ended March 31, 2020, 2021 As of and for the year ended March 31, 2020 Yen (millions) Motorcycle Automobile Financial Life Segment Reconciling 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 Share of profit of investments accounted for using the equity method ¥ 34,526 ¥ 129,114 ¥ — ¥ 563 ¥ 164,203 ¥ — ¥ 164,203 Segment assets 1,483,888 7,821,499 10,282,136 354,472 19,941,995 519,470 20,461,465 Investments accounted for using the equity method 83,144 566,582 — 5,749 655,475 — 655,475 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 Impairment losses on non-financial 345 57,817 36,039 15 94,216 — 94,216 Provision (reversal) for credit and lease residual losses on receivables from financial services — — 56,894 — 56,894 — 56,894 As of and for the year ended March 31, 2021 Yen (millions) Motorcycle Automobile Financial Life Segment Reconciling Consolidated Sales revenue: External customers ¥ 1,787,283 ¥ 8,567,205 ¥ 2,494,294 ¥ 321,737 ¥ 13,170,519 ¥ — ¥ 13,170,519 Intersegment — 212,144 12,494 20,107 244,745 (244,745 ) — Total 1,787,283 8,779,349 2,506,788 341,844 13,415,264 (244,745 ) 13,170,519 Segment profit (loss) ¥ 224,608 ¥ 90,255 ¥ 356,980 ¥ (11,635 ) ¥ 660,208 ¥ — ¥ 660,208 Share of profit of investments accounted for using the equity method ¥ 18,164 ¥ 254,079 ¥ — ¥ 491 ¥ 272,734 ¥ — ¥ 272,734 Segment assets 1,555,057 8,643,109 10,832,645 374,169 21,404,980 516,050 21,921,030 Investments accounted for using the equity method 88,476 796,036 — 6,490 891,002 — 891,002 Depreciation and amortization 68,258 515,241 825,975 15,644 1,425,118 — 1,425,118 Capital expenditures 48,800 500,431 2,006,264 11,609 2,567,104 — 2,567,104 Impairment losses on non-financial 726 19,999 (16,319 ) 357 4,763 — 4,763 Provision (reversal) for credit and lease residual losses on receivables from financial services — — (5,038 ) — (5,038 ) — (5,038 ) As of and for the year ended March 31, 2022 Yen (millions) Motorcycle Automobile Financial Life Segment Reconciling Consolidated Sales revenue: External customers ¥ 2,185,253 ¥ 9,147,498 ¥ 2,820,667 ¥ 399,278 ¥ 14,552,696 ¥ — ¥ 14,552,696 Intersegment — 213,095 2,656 22,480 238,231 (238,231 ) — Total 2,185,253 9,360,593 2,823,323 421,758 14,790,927 (238,231 ) 14,552,696 Segment profit (loss) ¥ 311,492 ¥ 236,207 ¥ 333,032 ¥ (9,499 ) ¥ 871,232 ¥ — ¥ 871,232 Share of profit of investments accounted for using the equity method ¥ 33,510 ¥ 168,415 ¥ — ¥ 587 ¥ 202,512 ¥ — ¥ 202,512 Segment assets 1,448,926 9,563,553 11,318,756 475,124 22,806,359 1,166,794 23,973,153 Investments accounted for using the equity method 104,535 855,309 — 7,560 967,404 — 967,404 Depreciation and amortization 65,423 510,755 883,712 17,018 1,476,908 — 1,476,908 Capital expenditures 49,203 410,169 2,028,700 15,748 2,503,820 — 2,503,820 Impairment losses on non-financial (23 ) 13,097 1,874 276 15,224 — 15,224 Provision (reversal) for credit and lease residual losses on receivables from financial — — 9,282 — 9,282 — 9,282 Explanatory notes: 1. Segment profit (loss) of each segment is measured in a consistent manner with consolidated operating profit, which is profit before income taxes before share of profit of investments accounted for using the equity method and finance income and finance costs. Expenses not directly associated with specific segments are allocated based on the most reasonable measures applicable. 2. Segment assets of each segment are defined as total assets including investments accounted for using the equity method, derivatives, and deferred tax assets. Segment assets are based on those directly associated with each segment and those not directly associated with specific segments are allocated based on the most reasonable measures applicable except for the corporate assets described below. 3. Intersegment sales revenues are generally made at values that approximate arm’s-length 4. 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, 2020, 2021 and 2022 amounted to ¥787,022 million, ¥696,327 million and ¥1,319,995 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income. 5. Provisions for product warranties accrued for the years ended March 31, 2020, 2021 and 2022 are ¥212,275 million, ¥272,076 million and ¥118,378 million, respectively. These are mainly included in Automobile business. 6. The amounts of write-down of inventories recognized as an expense for the years ended March 31, 2020, 2021 and 2022 are ¥37,752 million, ¥28,420 million and ¥11,295 million respectively. These are related to Automobile business and aircraft and aircraft engines, which are included in Life creation and other businesses. 7 . Right-of-use (b) Product or Service Groups Information Sales revenue by product or service groups of Honda for the years ended March 31, 2020, 2021 and 2022 is as follows: Yen (millions) 2020 2021 2022 Motorcycles and relevant parts ¥ 1,921,065 ¥ 1,658,871 ¥ 2,066,557 All-terrain side-by-sides 138,270 128,412 118,696 Automobiles and relevant parts 11,199,477 9,746,374 10,582,764 Financial services 1,346,568 1,315,125 1,385,401 Power products and relevant parts 243,251 257,237 294,577 Others 82,378 64,500 104,701 Total ¥ 14,931,009 ¥ 13,170,519 ¥ 14,552,696 (c) Geographical Information The sales revenue and carrying amounts of non-current As of and for the year ended March 31, 2020 Yen (millions) Japan United Other Total Sales revenue ¥ 2,307,523 ¥ 7,091,136 ¥ 5,532,350 ¥ 14,931,009 Non-current ¥ 3,003,416 ¥ 4,007,268 ¥ 1,573,982 ¥ 8,584,666 As of and for the year ended March 31, 2021 Yen (millions) Japan United Other Total Sales revenue ¥ 2,190,797 ¥ 6,291,857 ¥ 4,687,865 ¥ 13,170,519 Non-current ¥ 3,050,270 ¥ 4,242,405 ¥ 1,641,793 ¥ 8,934,468 As of and for the year ended March 31, 2022 Yen (millions) Japan United Other Total Sales revenue ¥ 2,354,532 ¥ 6,728,800 ¥ 5,469,364 ¥ 14,552,696 Non-current ¥ 3,036,832 ¥ 4,490,562 ¥ 1,768,697 ¥ 9,296,091 (d) Supplemental Geographical Information 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, 2020 Yen (millions) Japan North Europe Asia Other Total Reconciling 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 ¥ 3,003,416 ¥ 4,755,072 ¥ 58,735 ¥ 658,397 ¥ 109,046 ¥ 8,584,666 ¥ — ¥ 8,584,666 As of and for the year ended March 31, 2021 Yen (millions) Japan North Europe Asia Other Total Reconciling Consolidated Sales revenue: External customers ¥ 2,190,797 ¥ 7,081,264 ¥ 503,549 ¥ 2,966,814 ¥ 428,095 ¥ 13,170,519 ¥ — ¥ 13,170,519 Inter-geographic areas 1,677,038 399,573 178,300 491,965 6,400 2,753,276 (2,753,276 ) — Total 3,867,835 7,480,837 681,849 3,458,779 434,495 15,923,795 (2,753,276 ) 13,170,519 Operating profit (loss) ¥ (75,935 ) ¥ 455,888 ¥ 27,460 ¥ 251,886 ¥ (5,034 ) ¥ 654,265 ¥ 5,943 ¥ 660,208 Assets ¥ 5,295,475 ¥ 12,209,455 ¥ 677,066 ¥ 3,267,417 ¥ 482,918 ¥ 21,932,331 ¥ (11,301 ) ¥ 21,921,030 Non-current ¥ 3,050,270 ¥ 5,039,085 ¥ 60,790 ¥ 666,795 ¥ 117,528 ¥ 8,934,468 ¥ — ¥ 8,934,468 As of and for the year ended March 31, 2022 Yen (millions) Japan North Europe Asia Other Total Reconciling Consolidated Sales revenue: External customers ¥ 2,354,532 ¥ 7,618,932 ¥ 602,695 ¥ 3,393,323 ¥ 583,214 ¥ 14,552,696 ¥ — ¥ 14,552,696 Inter-geographic areas 2,004,754 471,255 98,516 662,124 9,925 3,246,574 (3,246,574 ) — Total 4,359,286 8,090,187 701,211 4,055,447 593,139 17,799,270 (3,246,574 ) 14,552,696 Operating profit (loss) ¥ 6,411 ¥ 501,073 ¥ 26,681 ¥ 339,129 ¥ 22,899 ¥ 896,193 ¥ (24,961 ) ¥ 871,232 Assets ¥ 5,318,033 ¥ 12,983,779 ¥ 597,473 ¥ 3,803,877 ¥ 619,998 ¥ 23,323,160 ¥ 649,993 ¥ 23,973,153 Non-current ¥ 3,036,832 ¥ 5,334,121 ¥ 49,129 ¥ 706,562 ¥ 169,447 ¥ 9,296,091 ¥ — ¥ 9,296,091 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. Operating profit (loss) of each geographical region is measured in a consistent manner with consolidated operating profit, which is profit before income taxes before share of profit of investments accounted for using the equity method and finance income and finance costs. 3. Assets of each geographical region are defined as total assets including investments accounted for using the equity method, derivatives, and deferred tax assets. 4. Sales revenues between geographic areas are generally made at values that approximate arm’s-length 5. 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, 2020, 2021 and 2022 amounted to ¥787,022 million, ¥696,327 million and ¥1,319,995 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income. |