HMC - Earnings call transcript Q2 2022

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Noriko Okamoto

Thank you very much for taking time to view our program today.

Now we'd like to start Honda Motor Co., Ltd.'s Fiscal Year 2022 Second Quarter Financial Results presentation meeting. I am - my name is Okamoto from Corporate Communications, facilitator for today. Allow me to introduce today's presenters.

We have Director, Executive Vice President and Representative Executive Officer, Mr. Kuraishi. Seiji

Seiji Kuraishi

you. see to Good

Noriko Okamoto

Director, Senior Kohei Director, Managing Executive Mr. Takeuchi. And

Kohei Takeuchi

see you, to everyone. Good

Noriko Okamoto

to to Then of Mr. we'd ask like Kuraishi year second our 'XX give quarter results. fiscal outline an

Seiji Kuraishi

profound attributable caused. apologize to and than vehicle who combination Honda resurgence to Southeast by to production production like are by customers, the around drop awaiting other loyal certain a for products. and our the there the would semiconductors I was world. us inconvenience our supply including The Asia, delay, expressing lockdown of my Currently, shortage greater the the support forecast. gratitude of COVID-XX of begin given in and all previous mainly due stakeholders sincerely parts to in, supporters We to are customers

XXXX XXX,XXX components. As parts equivalent dual taking unit Automobile QX is Honda a developing source Group result, promote units. to alternative sales FY of other measures and was

beginning We given the will sales year lockdown units. X.XX Group revised Automobile FY forecast recover prolonged million Asia, unit is but X.X downward the production amongst million to XXXX from others, from of units next in

to a With to keep to will the we we our minimum, as products our strive and possible. from will production on cooperation to impact various work customers deliver as stakeholders, early

units; outline X,XXX,XXX Now six Automobiles months FYXX forecasts. FY move was: results XXXX X,XXX,XXX to year present units; XXXX financial of business, and unit on Creation the second fiscal X,XXX,XXX quarter financial Motorcycles Life sales units.

was semiconductor year. from period first half Honda's number month sales month and unit below three was last period strong year three last in sales of mini-car last was Japan's of shortage sales the same the down Series markets. month same period six by but XXXX. FY hit main industry demand the for the sales one the exceeded year. Despite had segment Next, hard Vezel, the supply same N-BOX the

shortage. Honda despite has expected current industry forecast Forecast given the to situation. revised demand production XXXX: be previous is for the semiconductor strong FY

stimulus the was same package United is to total Fiscal recovered period others. due previous the and Next of the year. six States. month's Industry demand above

despite was due Honda outperformed growth sales single an as driver. first brand North Honda shortage. three the name Passport the record. to record to lower semiconductor is America, FY its updated all-time main EV quarter Prologue. trucks expected light demand revised It the in shortage, month announced strong. the Second we in months sales forecast has to current with monthly is continue of the reflecting forecast, In September. set market the June, production the Honda SUV semiconductor volume XXXX previous industry situation. name supply demand be supply

measures. period demand of Honda strategy same Next, China. sales sales three the offer to semiconductor last year. October, month's electrification lower in EV demand XXXX shortage amongst XR-V, period than China. last to year underperformed resulted its demand last economic But a recovered calendar fiscal strong attractive year in the primarily and due same increase But saw also lineup others. Calendar we Industry stimulus QX announced strong exceeding forecast industry and In will stay products. expected our year. the

car, deployed advanced Honda Honda driver will assistance omnidirectional was XXX SENSING Honda's first series China e:N brand XXXX. be Our China unveiled. EV system in in

including though parts forecast: sales same last to FY certain same many positive in is material to material due XXXX profit operating in and increase is of a environment, to second revised FY based of JPY upward, XXXX dropped Outline of JPY profit months' raw currency, the regarding to equivalent the on in shown. statement statement year. period Honda of other its previous results. of forecast cost are current industry three year. raw over Industry and the financial Unit reduction total is earnings enhancement reduction COVID-XX and income forecast. investments sales in equity of from efforts external months COVID-XX. last harsh to period six countries as as a billion price fiscal the and sales year. billion resurgence, using costs attributable for in parent FY on XXX.X and to the accounted JPY shortage and And demand we impact demand, expected to shortage in to due three per months exceeded the Moving our QX SG&A, of supply of anticipate to effects primarily method there resurgence, and Also semiconductor Motorcycle to Thailand by operating billion. semiconductors at . XXX.X JPY maintaining and reduction increased profit year profit steadily. share increased due the JPY the XXX.X Vietnam Honda's recovered increase sales Unit total, concern the a and expected our resurgence last business. quarter in expected result cost are demand, unit exceeded XXXX owners income rise demand wholesales next, still increase shown. to Despite billion, Indonesia. billion XXX India COVID-XX Though increase, XXX.X continue. are in share But

XX XX%. realize dividend Next will about of Honda around outlook per XXXX return is payout ratio JPY shareholder's unchanged. a dividends, stable towards dividend annual aiming remains continue share, interim to strive FY to

Noriko Okamoto

and like to to Director Mr. Senior results Officer our our we'd details Managing Now provide Executive for Takeuchi, financial forecasts. quarter have and

Kohei Takeuchi

me allow Okay, explain. to

increase sales markets in the and declines in declines Motorcycle in in operations, second three showed an Thailand the Vietnam other US China of Life and the Automobile in operations of and for results the month, unit Creation at US and operations. Looking Group Honda the quarter in

a earnings. earnings second billion. of from our was lower Automobile China, profit billion. and Turning in to last from due lower declined equity revenues reduce revenues was, mix, to Sales billion due and sales was in to Operating XXX.X due affiliates year to to JPY our and the profit reduce model it eye operations JPY quarter sales X,XXX.X XX.X profit JPY

to the profit period to down was different was the Operating affecting even was factors currency due decrease to JPY second it for increase an last explain like though was versus I billion Next, and same billion, by same JPY last to profit there profit, XXX to was, due which effect compared lower billion, XX.X Pretax period profit. billion down the leading year. sales mix JPY quarter revenue XX.X JPY XXX.X year. model would by

operations profit fluctuation Next, billion. going to our mix, was Motorcycle for was, to reduce profit JPY XX.X model financial business segment. it to Operating volume due by and results due

together. Automobile Next to profit from operations financial is going operating in volume finance profit profit for and XXX.X lower to profit from as services related services JPY the operations in mix, to due was was, operating billion. decrease and credit Automobile was billion, JPY included provision margin added from operations due Automobile at difference from Operating to amount expected XX.X billion. losses model it operations Operating JPY posted XX.X sales

engine X.X looking profit loss amount, billion. at other operating the Life XXX at operations, JPY Of and the aircraft JPY Next, for operating it aircraft was million. Creation from and was this operations

fiscal impact year JPY XXX.X affecting is the earnings the as billion, due was, of as JPY XXX.X effect explain are was the last Operating profit, the versus to increased profit as same factors model the year. billion, profit billion, the change sales period well and JPY currency billion up which period last same XXX.X year. half Slide. from mix first up pretax JPY Next, To for the shown on was the which XXX.X

was Next, minus the X,XXX.X the end free services the cash for half flow balance XX.X for fiscal JPY and was billion, billion. first the of quarter and of equivalents cash the the non-financial year second cash operations of JPY at

the XXXX. like consolidated for forecast performance year full to the explain the I'd Now for

fiscal up sales X.X the unit XXX,XXX the million is affecting Motorcycle is forecast. The supply at financial XXX compared units. year. First, our XXXX basis to last units, is the a units, from the including forecast for previous in forecast forecast, the XX million fiscal which sales are here. In for the profit of X.X In down billion, Creation the for of sales expected billion operations, impact is our on JPY units million Automobile Honda to estimate explain considering Life compared operations JPY prospects XX.X semiconductors, part volume, year operations, down Group factors To shortages pre-tax XXX,XXX units. for shown consolidated is

posted be is one-off by JPY expected to of our and due was, be that fiscal because so to of forecasts fiscal and other year, from the For This of had expected decline amount for affiliates. Equity forecasts [indiscernible] impact JPY in of to by we offset previous reduction by new three the to flat expenses SGA though, been billion be posted is to generated by and was operating differences lower operating have currency provision revenues, sales billion. in effects, material reduction a profit, XX.X there JPY positive profit earnings to XX.X from billion. sales pretax model effect as profit in this will XXX model but low and revenue Comparing SGA temporary operating prices affiliates earnings raw In positive impact. losses, It credit our last is August, effect mix. expected in due increase surging a currency as year. mix earlier profit offset be

billion, down compared to XXX is previous forecast XXX Now the the forecast. for billion JPY

R&D depreciation, expenditure, are shown concludes slide. my expenses you on capital This very for as prospects our presentation. much. Lastly, the Thank

Operator

to your Keizai Thank Thank when Zoom [Operator Nihon we first like newspaper, asking ask To we the use [Abhay]? in have And question, you proceed listening. you questions advance would to informed now to Mr. the media, answers. you, that the we you for and Shimbun questions. instructions].

Unidentified Analyst

This is from Abhay Nikkei.

this second there been question, and semiconductors, revision how from reform able measures So to The in EV on views the did negative the current the or million, you profit shortage does your impact shortage well, not much impact enhance world automobile as future how also semiconductors the semiconductor to is future outlook undermined. secure prospect the investment prospect? it elaborate but Be X.X production, have And made. your of what this the you're the that the taking accuracy? on unit currently new of can to April-September the vehicles, plan? plans? you you the original see sales plans? production compared any in the there about will to has Group The shortage Well First, number what of reduction is and being

Seiji Kuraishi

the semiconductor First, shortage. let me talk about of impact

shortage will some lockdown experienced a there as we time fire in temperature last and from see the supply it lockdown last that well longer reduce onetime and of But shortage, a anticipated. Southeast originally therefore prospect decided States million X now shortage to impact. and in First, suppliers But the more we Asia. And is we was even our the a the of the supply X.X believed United as likewise. and was to serious the low is million the that

we So to we do it's But duration Asia, were recovery X.X the unable from been But we regrettably in to supply that reduced long because a lockdown in the were will see third of the anticipating so. Southeast quarter. of million.

are of this fiscal we a year. We recovery achieve beginning next difficult be that by will to of year. planning believe the to end the from recovery it But make the

of As to prospect for look - semiconductors, yet the into being able necessary now. we this to trying we secure the are have

the As what know in challenges prospects, future. the of shortage don't the to for we be the due will future semiconductors,

incidents to working chain gain starting as are sourcing are come we toughness and with and also dual a now to supply situation. improvements to We so these see against ensure

reform on will the this do year. you. question, the best drop are in timing an part about whether Thank I'll be next in the we EV? will a the will preparing very production And current year, year, said that profit, future fiscal whether direct we addition And on and semiconductor our April-September our your of fiscal very impact well, to production, also we recovery in to explain for at do negative have And good fiscal supply in I next believe impact That so. improve. And cycle later. meet we demands. the No, model So production this next earlier, will therefore currently fiscal year, strategies? impact, think automobile this have not operating as that an from will about

Operator

answer global you much for very an Communications our Thank provide will the Corporate later. production,

my Mr. next question Yomiuri [Katagiri], to is from you. over newspaper, Okay. The

Unidentified Analyst

hope newspaper. me? This is can Yomiuri I from hear [Katagiri] you

Operator

Yes.

Unidentified Analyst

the it But think, you. question expected the impact on than The thank the from are demand just was okay. was guess, and States production for the reduced good still So wonder, very But of Japan I second the how Okay, so thank demand. there it's probably but the than lower other year? China, you. and share the there you but for any the demand in - what But the I risk the was China, is rest differences you for models, how low demand rest And the is of US? world? do November, about fiscal I could regional if reason risks better forward going then demand with the the My in the me the then prospects view for China? future. Okay, you raw do prices, the materials in for for

Seiji Kuraishi

- prolonged the impact I'm continue repeating traffic suffer. our ports, in situation. compared the various the current myself, are estimate. but Asia to we we'd impacting supply minimize Particularly minimize to like COVID-XX congestion, But Okay, the is chain, the now lockdown to in the those initial that then having there harbor impact are Asia, the and with lockdown factors a impact, are the impacting

- allocation, Maybe are there And basis. need particularly there and and available stock depending stock adjust, supply, so a allocating doing, monitor different are are reviewing global weekly course, production on the across are to they if we are production are we then we were we our we will are then and ones balance differences. the the situation adjusting and we parts semiconductor, allocation available inventory any semiconductors. And a consider the the components, so types. to on ones, there's our But on semiconductor many trying regions So not different monitor shortage, and basis. of

currently, a our allocation. the our ventures including the in is but joint we sales and along to And principle, do planning, different - to generally, as well impact have to is allocation. we on because strategy. China, with say in want are any we are That's that for regions mix suppliers. shortage differences between going different the shortage China, power basically, stance will as as weekly But can't as monitor timely models the now forward result sales a power reasons, there we for I the continue So then basis continue situation so our proper - in but seen well not two due there, different for their

well, sites region. this monitor closely - But actions are those and the entity those and important conditions regions needed. So then we will future then Honda the currently production take Guangqi if in the other in as

So they are closely monitoring the situation.

central to monitor like situation. situation So together to Thank we the government would the monitor you. the closely continue with to

Operator

Thank you, the next question.

Mr. Asahi Shimbun, [Kameyama], please.

Unidentified Analyst

[Kameyama]. newspaper, Shimbun Asahi Can you hear me?

Operator

Yes.

Unidentified Analyst

Two questions.

to the group million has from million. sales First, you unit said been reduced X.XX X.X

you already I think it that what the reduction, will will long impact delays delivery And do That's on a also, we now. continue? sales? situation first But as the this are have think question. current how of seeing result

positive drop declining, on well they the hand, this but and The performance. production second incentive States, in is is seeing question, are a one United for sales in your

performance, on So has how And had please? impact reduced? corporate your much incentives been what it have

Seiji Kuraishi

unit I wait the having for we supply will the we we But date. products. The the impact has for but apologize are We see that will delay see will us to have don't we delivery for that have think unit in sales. continue. of the delay. our first Well on impact, what sales, plan any based customers communication further COVID-XX We semiconductor to our respond resulted delays, in ensure delivery currently, to the the

we as will everything customers try to deliver And our so observing situation, the to as try possible. to cars early

That will thank a believe enter semiconductors, can that start is production as into phase. you. And I recovery. recovery to so all, said, we fourth And as the quarter, see from for we we

Kohei Takeuchi

because significantly what the really per United of it dealers, for positive will year, Because especially incentive turned is in explain this and the at slightly XXX,XXX is States the vehicle half decline, of there There you as but on short. performance, had because be that. above be that has and incentives. in it to the these were North was - out of components it And to be amount reduced last this there's United about But supply, auto impact are still the is the is part the at our - a past, fiscal And the the positive Allow from unit us. this and know, in incentives cannot and delay has in year offset but unit fiscal production data. the rater incentive and dealers and the in inventory this the the incentives unit in sales includes down And this, States. of volume, the sales because spent about large the biggest America. of and it drop to me money a of the non-incentives sales JPY

Operator

from Thank please. will Automotive, be Then Mr. the you much. question next [Misitory], very Nikon

Unidentified Analyst

automobile daily questions. My were but first raw impact? I Good year forecast, afternoon. JPY from prices price your with impact [Misitory] XXX - think This your considered you of term, you course, into case are the beginning your sure, you starting is you. the newspaper. January, I two Another repricing will one daily like what in RCEP vehicles the surging expecting final Thank one I that's of to newspaper, you localized changing material consideration, have know a just the something at is mean, those - and do any in expectations the expectations billion that's surging, but is that? parts, course I mean by I are? throughout any Of would to the the I'm take product? all would need have for of have

Seiji Kuraishi

transfer surged, the metals, coming came catalyst it's we at higher - other increasing for metals' incorporated were aluminum billion into up we unit metals JPY said expecting that expectation. said, impact. prices those the No, that we surge prices. the then JPY still government included true, higher somewhat used we for intervention to they those also Oh, selling any And the those, this fiscal as still JPY vehicle so and answer we the - of increase the if down materials, for prices customers. me XXX that's monitor in our that's other with those the might raw all XXX because doing beginning with price expecting of And have peak, the really might billion prices so let cannot and okay what we are those of were we right we XXX monitor the what prices for prices. there billion so cost But we the doing will full why - and precious But year. of increases our to course, in XXX are some the that will those. Mr. precious has, now, of material year then prices competitors But the steel, the are then, Okay, are the prices? we from it's about [Misitory] But include the still materials. and but competitors incorporation

Okay, want so is. for RCEP, with produce the we we are far demand because localization where the advanced to

Thank think will and don't but that bad we So take you. to monitor the there's an impact, actions situation be necessary. going we

Operator

you Thank much. very

please. Automotive Next, Hans, Language] [Foreign News.

Operator

please. Yes,

Unidentified Analyst

a I you. about It's lately. two automakers, lot exchange Japanese real Thank One been tailwind the for a questions. foreign have is of rate.

or electric investments Honda for kind some moving don't When batteries the maybe from we can electric start even from your in shift automakers Honda. electric to steady provisions vehicles. from expect investments investment direction? expect the as lines for or see provisions you question of to of it if about makeover Already When hear Honda? or full have to start keeping vehicles, it ambitious some And factories? outlays is as your Do for announcements as vehicle year yet new announcements you're total or we help they other but the rest rate or your electric about year. about we improve will their only to Japanese or in of keeps results this Language] [Foreign see second think in the plans exchange this the in fiscal vehicle end I you

Seiji Kuraishi

Language] [Foreign

Kohei Takeuchi

to and me foreign Japanese convert one let as Yes, the North exchange Well, says try North also hand, components but the answer the exchange to a Hans question. yen. America in supplying we are American we to on your have foreign profit

the a the us last and So impact the quarter was for replaced exchange it against you yen it's and compare after from the forecast, favorable XXX big JPY XXX the third have actually us. second quarter, is rate quarter, the in we yen the it foreign XXX second JPY JPY dollar. has And at weak and on if in time, and

States hear quantitative of because seeing JPY impact this US revenue. positive. supplying But and shift this, United etc. the in so on and towards a we're some the the doing United reviewed be when being and we an and stronger of Brazil, might just dollar, well, States, as will that think Thailand, our doing operation be in So billion dollar, in strong are it in not I easing a and profitability XX also But we're there we to comes Japan,

will become the components currencies, if a the imported local weak, see So impact. negative then they

to an the we year there's at impact saying the no. that not have that if we and overall see look - it's $X what billion. we a two, the swing well, to of dollar see we that say But the at just weak look US around three So is is as JPYXX advantageous, have situation, throughout simple we're yen

think in we a I as to see other because not US have other simple the than as currencies dollar. that, hope the it's about So second half, But that we tailwind.

Seiji Kuraishi

battery, yes, partner the China. the want specific to About GM in regards the best with and well, EV in local, so to US for in transition, CATL the the shift we and strategies, to

making partners. working are as necessary well. those with other investments for regions And So the already we're we

alliance. look possibilities at to have We various local conditions, including the consider etc. And

operation We towards start factory. G that the said factories, friendly day environment China, we other Hack. aim announced in and WD to EV so will establish that an that for strategy - our Hack can we we As

So But disclose But as and we making be when a please we what well, those the comes, it not the them to for time you, disclose we numbers today. are including are the details, to now. to And preparations. in able position allow numbers me I'm investment to announce such will doing. not

Operator

much. Thank is question the please? Mr. next Then from NewsPicks. you very Hiroko,

Unidentified Analyst

Okay, thank name - NewsPicks. you. This is my from is Hiroko

Operator

Yes, hear you. we can

Unidentified Analyst

Earlier the are it about the this semiconductor sure I ask used different forward like a that mentioned shortage. only semiconductor bit shortages, advanced it I'm when your would the same you the that question. more was to And time, the the not actions automobile. the But for many to at types. going about said detailed there little comes future - is are in most, most semiconductors for

I types those wafer, well. are they micrometre legacy believe those as some XXX So ECU used contain

semiconductor So ROI low. producers is the ROE for legacy the semiconductors is -

don't them they have So a priority first. on producing

be some is, concerning me? bottleneck. So production you for I like ECU another strategy. XX really - you for XX agree of as And my integration or with up into question nanometer wondering integration so? have materials types that or I'm prospects you using might your just that over technology if might Would think. years And production is like to those prices, type nanometer ECU? resources a the you do question five the raw you come considering with of new second then kind a then that be shortages gets Do IC are trying resolved, so

some there back think was surging XXXX, prices. in I

prices, copper chance that might but metals, there and go it a that sure be those go because is those I'm structurally. like then the people there So demand to electronics, rare will down, increasing for the

wise there's be even in So just believe wondering term, believe I'm they for might prices. the of prospects prices up. that long the will kind long the structurally, term have prices, if I you the fluctuation go I some - if

Seiji Kuraishi

about increase much of on reviewing about, manufacturers, with like to need semiconductor X And we like the think to issues we stock also and how with against the how we the Tier a then to also, might agreements, consider try supply - a relationship with our need we want contracts we chain to working semiconductor about maybe think For of hold. supply long to semiconductor the term, we toughness the purchase - course, work company. need

different are are the of off-the-shelf that, we Currently, then taking actions secure same trying well. supplies. as semiconductors, we And to semiconductor at options we tests semiconductor to obtain doing are use So time. those the to with think

course, going we forward. believe will semiconductor the Of continue shortage that

So we will in of different continue stable in That think then answer. and to supply of secure order take my actions completes semiconductors to ways.

Kohei Takeuchi

and about Okay, our prices. the on resource then view

could the already at really beginning are it true high. on because for the them As And the demand be is - fiscal there PGM, I mentioned unit the that metals, speculation, earlier, the was a precious went of so high. depending year market, of the metals surged price there some where structurally

structurally or do stay long price So term. can high, the consider we

amount we and come car contract, be, go can long contracts, simply certain with we different actions, a that there's alternative put, to the the will so we a purchase And for if from for it might prices specifications expect then we we we So that actions. we the So then how parts do that But can that? has prices. to up. the we increase cost materials the take or we term can review the maybe impact minimize And anyway, do possibility our up so use. transfer the do that maybe in reduce

Thank Okay. you.

Operator

Mr. NHK, [Tubly], question. please. Next

Unidentified Analyst

to follow price high question. previous now. raw About material, NHK. is oil do? the How from Crude up a do this is extremely [Tubly] the you

impact this resin gave For you examples, has think steel, an price? aluminum, I on those manufacturers. but Sorry, oil about that crude

an of Currently, are So foreseeing? continue much have? you does of going forward? if And how impact this having? should much how an much how it And impact is impact it going forward,

Kohei Takeuchi

oil been $XX As we've saying, barrel. is per yes, about

will And are if the crude have you the again, being made they up, come costs this prices we oil. it how the and for crude cost from are an the Currently, not painting and cars, the high. said, made wouldn't soar, raw then extremely oil so and and with gone the currently impact. plastic to increase. from resin try it's that So prices have oil The but absorb alternative we is yes continue material researching is crude up from materials, that will coming increase to - we coating on question

So cost you. of good with to Thank And, that increase factoring be [Tubly], use, the areas, in reducing our as able crude we offset so price to impact we in. components Mr. tried offer are to we oil the yes, with you the also say, as that customers other is products. something

Operator

Thank you. weekly next [Yokoyama], The Keizai, from Toyo Mr. question comes please.

Unidentified Analyst

is from questions you. have Yokoyama as well. Thank This I a Keizai. Toyo two

the profitability, profit Automobile in is one business. margin First

So it's end X.X% second of the at quarter.

X.X. the bearing - is it's you renovation it I if business down? the I'm You about the Automobile gotten lower incentive how looks gotten and - term. But profitability? the taking, stock it's maybe for fruit? what's [indiscernible]. do the has the boosting Or But view maybe that's wondering just just the like better I'm And coming talked mean if that? wondering just X.X% So like fourth from

is the Second question battery. about

a lot you of So said thinking investment. you're about

CATL Thank then have tell mention in made up team me in for have Japan. not it idea China. those well? sourcing You GM so, cannot your might if as And you for and with clear you name you But but you. I'm markets approach. got you States any could multiple whom sure you do any for

Kohei Takeuchi

business the Automobile about Okay, operations profitability.

we this consider challenge Automobile the our a big of company. said, Yokoyama business in Mr. essence, As

And So we that, innovate the of in profitability within the then volume, renovate, business. wanted been production working production to volume. Automobile to the optimize we have

good had then costs have even the in UK results. against Turkey, And in - fixed and we have COVID, markets. we the So even some compressed amidst those

for at the the will So some - then have say, production at some efficiency also, close let's in of production stopped organizational And some And and - Sayama UK, already. we R&D. brought stop plant we end that December. brought changes have

better moved be our to automobile to provide Honda through the can team lower organization, in it products R&D, that better development So prices. used we or we to Motors customers so have efficiencies

innovation So those we projects. been have doing

benefits to benefits. through. several seeing are we the But for will So good this come years take full

I Automobile we we of But work the from think in business. will do production, how and if going we don't we this optimization the about and then to you know together efficiency EV need business. then to by profitability So the solid still are - of have how consider development

to make way will next need we opportunity. So to

and we But And level been benefits lower, then competition. incentive incentive from the is far now existing getting the then I anyway. have higher. we've foundation optimizing we cannot been have better bring stock businesses do guess when if is good stock profitable the back? considering so no, the the back structure. we come with getting have outright, we - a up optimizing, for now lower, to structure and the So, so the say profitability really is But then comes - so

or our So provide can we probably that we better customers work so would have a better products to value lower incentive. better to at

secure - going good So it's just back not the right hope continue back we profits. so can to to because went stock that, continue comes be to that up, we incentives the

Seiji Kuraishi

Okay, about the battery strategy.

market. for now to markets, the ideas other China. that got right want and other Japan them and we to - well. large with you. relationship that thing the specific mentioned think to can earlier, for about so in considering local States, also the as Japan consume in for we then any still then the US, consideration can About share batteries the I've multiple have. State's-China contribute States for we CATL Those GM don't same we for markets, we Japan, for then to the at for and We markets, And That's are for we and but produce and stance for for said, the need our then like we States, economy. got and have are the that the I for we China is time sourcing As Japan, Japan

monitor that's then need So is closely and can to decisions. for we possibility, I'd all I There say make now. situation say, the

Operator

Ms. unmute. much. question unmated? Atami, She check hear are you not. can Thank [Atami]-san, Atami you Ms. We us? Atami. you question are Nikkan whether Ms. will The She Kogyo Please to unmuted? able you to very seem the next does apologize. be can be if doesn't check please? last Shimbun,

Operator

We you presentation quarter presented thank results us today. like what website. So conclude this, have financial today's our appear we for material second FYXX with on will that and would today joining to we

Honda Motor (HMC) 6 Nov 212022 Q2 Earnings call transcript