Segment Information | (4) Segment Information Based on Honda’s organizational structure and characteristics of products and services, Honda discloses segment information in four categories: Reportable segments of Motorcycle business, Automobile business and Financial services business, and other segments that are not reportable. The other segments are combined and disclosed in Power product s 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 Power Products 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, 2021, 2022 and 2023 is as follows: As of and for the year ended March 31, 2021 Yen (millions) Motorcycle Automobile Financial Power s 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 Power s 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 services — — 9,282 — 9,282 — 9,282 As of and for the year ended March 31, 2023 Yen (millions) Motorcycle Automobile Financial Power s Segment Reconciling Consolidated Sales revenue: External customers ¥ 2,908,983 ¥ 10,593,519 ¥ 2,954,098 ¥ 451,125 ¥ 16,907,725 ¥ — ¥ 16,907,725 Intersegment — 188,198 2,046 25,307 215,551 (215,551 ) — Total 2,908,983 10,781,717 2,956,144 476,432 17,123,276 (215,551 ) 16,907,725 Segment profit (loss) ¥ 488,709 ¥ (16,629 ) ¥ 285,857 ¥ 22,832 ¥ 780,769 ¥ — ¥ 780,769 Share of profit of investments accounted for using the equity method ¥ 49,119 ¥ 66,973 ¥ — ¥ 1,353 ¥ 117,445 ¥ — ¥ 117,445 Segment assets 1,580,521 10,082,519 11,197,017 480,166 23,340,223 1,329,844 24,670,067 Investments accounted for using the equity method 110,665 795,973 — 9,308 915,946 — 915,946 Depreciation and amortization 65,746 600,617 908,942 21,571 1,596,876 — 1,596,876 Capital expenditures 59,101 613,351 1,546,683 14,386 2,233,521 — 2,233,521 Impairment losses on non-financial 4,662 24,777 5,259 91 34,789 — 34,789 Provision (reversal) for credit and lease residual losses on receivables from financial services — — 27,018 — 27,018 — 27,018 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, 2021, 2022 and 2023 amounted to ¥696,327 million, ¥1,319,995 million and ¥1,462,656 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, 2021, 2022 and 2023 are ¥272,076 million, ¥118,378 million and ¥289,850 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, 2021, 2022 and 2023 are ¥28,420 million, ¥11,295 million and ¥8,400 million respectively. These are related to Automobile business and aircraft and aircraft engines, which are included in Power product s 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, 2021, 2022 and 2023 is as follows: Yen (millions) 2021 2022 2023 Motorcycles and relevant parts ¥ 1,658,871 ¥ 2,066,557 ¥ 2,742,572 All-terrain side-by-sides 128,412 118,696 166,411 Automobiles and relevant parts 9,746,374 10,582,764 12,093,972 Financial services 1,315,125 1,385,401 1,453,645 Power products and relevant parts 257,237 294,577 360,385 Others 64,500 104,701 90,740 Total ¥ 13,170,519 ¥ 14,552,696 ¥ 16,907,725 (c) Geographical Information The sales revenue and carrying amounts of non-current 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 As of and for the year ended March 31, 2023 Yen (millions) Japan United Other Total Sales revenue ¥ 2,409,584 ¥ 7,905,936 ¥ 6,592,205 ¥ 16,907,725 Non-current ¥ 2,937,148 ¥ 4,373,329 ¥ 1,728,475 ¥ 9,038,952 (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, 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 As of and for the year ended March 31, 2023 Yen (millions) Japan North Europe Asia Other Total Reconciling Consolidated Sales revenue: External customers ¥ 2,409,584 ¥ 8,939,259 ¥ 675,728 ¥ 4,068,234 ¥ 814,920 ¥ 16,907,725 ¥ — ¥ 16,907,725 Inter-geographic areas 2,138,418 476,993 27,990 789,603 4,695 3,437,699 (3,437,699 ) — Total 4,548,002 9,416,252 703,718 4,857,837 819,615 20,345,424 (3,437,699 ) 16,907,725 Operating profit (loss) ¥ 25,821 ¥ 258,805 ¥ (2,556 ) ¥ 408,728 ¥ 58,935 ¥ 749,733 ¥ 31,036 ¥ 780,769 Assets ¥ 5,306,084 ¥ 13,467,383 ¥ 648,614 ¥ 3,771,171 ¥ 690,904 ¥ 23,884,156 ¥ 785,911 ¥ 24,670,067 Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets ¥ 2,937,148 ¥ 5,192,731 ¥ 47,869 ¥ 685,311 ¥ 175,893 ¥ 9,038,952 ¥ — ¥ 9,038,952 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, 2021, 2022 and 2023 amounted to ¥696,327 million, ¥1,319,995 million and ¥1,462,656 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income. |