Honda Motor Co., Ltd.

Transcription

1 3rd Quarter Financial Results 3rd Quarter Financial Results Honda Motor Co., Ltd. January 31, 2014 VEZEL HYBRID (JAPAN) 1

2 Topics 3rd Quarter Financial Results - 3rd Quarter Financial Results - Financial Forecasts - Dividend Tetsuo Iwamura Executive Vice President 2

3 3rd Quarter Financial Results Outline of 3rd Quarter Results Summary (Consolidated) Results Summary Operating income amounted to billion yen, an increase of 73.2% mainly due to the positive impact of new model introductions in Japan, North America, and Asia, as well as cost down effects and favorable currency effects. 3rd Quarter Results FY2013 and FY2014 2,800 2,500 2,200 1,900 Consolidated Unit Sales 2,657 2,350 1, ,200 1,100 1,195 Unit (thousand) 3,000 1,162 2, ,000 1,000 Net Sales / Operating Income 3, , ,000 Motorcycles Automobiles Power Products 0 Net Sales 0 Operating Income 3

4 3rd Quarter Unit Sales 3rd Quarter Financial Results Honda Group Unit Sales Motorcycles (thousand) 3Q Results (3 Months) Change 3,815 4, % 4,500 4,000 Honda Group Unit Sales 4,251 3,815 1,100 Unit (thousand) 1,082 1,195 1,200 1, Automobiles 986 1, % 3, ,100 Power Products Consolidated Unit Sales Motorcycles Automobiles (thousand) Power Products 1,195 2, ,195 1,162 3Q Results (3 Months) 2, , % Change % + 7.0% -2.8% Motorcycles Automobiles Power Products Motorcycles Automobiles Power Products Honda Group Unit Sales - Increase in motorcycle unit sales due to the positive impact of new model introductions in India and introduction of models equipped with fuel injection in Indonesia - Increase in automobile unit sales due to the positive impact of new model introductions as well as the launch of fully remodeled vehicles in Japan, North America and Asia 3,000 2,800 2,300 1, Consolidated Unit Sales 2,350 2, , ,195 1,200 1,162 1,100 1,000 Unit (thousand) 4

5 3rd Quarter Financial Results 3rd Quarter Financial Results (Consolidated) Financial Results Net sales & other operating revenue Operating income Operating margin Income before income taxes Equity in income of affiliates Net income attributable to Honda Motor Co., Ltd. *1 EPS attributable to Honda Motor Co., Ltd. (Yen) *2 Average Rates (Yen) US Dollar Euro 2, % Q Results (3 Months) 3, % Change % % % % % Yen down by 19 yen Yen down by 33 yen Financial Summary - Revenue increased by 24.5% mainly due to a rise in automobile and motorcycle net sales as well as the positive impact of foreign exchange effects - Operating income increased by 73.2% mostly due to a rise in income associated with changes in sales volume and model mix, cost down effects as well as the positive impact of a weaker yen, despite increased SG&A and depreciation expenses For *1 and *2, please refer to footnotes on page Operating Income Operating Margin % 7.2% 6% 6.5% 5.9% 4% 4.4% 7.6% 5.4% 5.0% 50 2% 0 1Q 2Q 3Q 4Q 0% 1Q 2Q 3Q 4Q 5

6 3rd Quarter Financial Results Financial Results (Consolidated) Motorcycles Automobiles Honda Group Unit Sales (Consolidated Unit Sales) (thousand) 11,532 (7,020) 2,981 (2,506) Nine Month Results 12,521 (7,613) 3,128 (2,627) Change + 8.6% (+ 8.4%) + 4.9% (+ 4.8%) Power Products 4,108 (4,108) 4,046 (4,046) -1.5% (- 1.5%) Financial Results Net sales & other operating revenue 7,132.9 Nine Month Results 8,745.2 Change % Operating income % Operating margin 5.7% 6.7% - Income before income taxes % Equity in income of affiliates Net income attributable to Honda Motor Co., Ltd. * % % EPS attributable to Honda Motor Co., Ltd. (Yen) * For *1 and *3, please refer to footnotes on page 33 Average Rates (Yen) US Dollar Euro Yen down by 19 yen Yen down by 31 yen 6

7 Financial Forecasts (Consolidated) 3rd Quarter Financial Results Results Forecasts Change amount % Change from previous forecasts Net sales & other operating revenue 9, , , % 0.0 Operating income % 0.0 Operating margin 5.5% 6.4% Income before income taxes % Equity in income of affiliates % Net income attributable to Honda Motor Co., Ltd. * % 0.0 EPS attributable to Honda Motor Co., Ltd. (Yen) * For *1 and *4, please refer to footnotes on page 33 Average Rates (Yen) US Dollar Euro (4Q 100) 134 (4Q 135) Yen down by 16 yen Yen down by 26 yen Yen down by 3 yen Yen down by 7 yen 7

8 Dividend 3rd Quarter Financial Results (Yen) Dividend per Share (Expectation) Increase / Decrease from 1st quarter End nd quarter End rd quarter End th quarter End 19 ( 20 ) ( + 1 ) Fiscal Year 76 ( 80 ) ( + 4 ) 8

9 Topics 3rd Quarter Financial Results - 3rd Quarter Financial Results - Net Sales and Other Operating Revenue - Change in Income before Income Taxes - Business & Geographical Segment Information - Financial Forecasts Kohei Takeuchi Operating Officer and Director Chief Financial Officer 9

10 3rd Quarter Financial Results Net Sales and Other Operating Revenue < 3rd Qtr> ( %) Excluding currency translation effects ( %) , , ( %) Motorcycle Business (+ 6.5 %) Automobile Business Net sales & other operating revenue (+ 6.1 %) ( %) Financial Services Business 3Q 3Q Motorcycle Business Currency Effects Power Product & Other Businesses Automobile Business 1, ,372.4 Financial Services Business Power Product & Other Businesses Market average rates Total 2, ,020.8 US Dollar Euro Q 3Q 10

11 3rd Quarter Financial Results Net Sales and Other Operating Revenue < > + 1,612.2 ( %) Excluding currency translation effects ( %) + 1, , , (+ 8.5 %) (+ 3.9 %) Automobile Motorcycle Business Business Net sales & other operating revenue (+ 5.2 %) ( %) 9 Months 9 Months Motorcycle Business ,215.1 Automobile Business 5, ,798.0 Financial Services Business Power Product & Other Businesses Market average rates Financial Services Business Currency Effects Power Product & Other Businesses Total 7, ,745.2 US Dollar Euro

12 3rd Quarter Financial Results Change in Income before Income Taxes < 3rd Qtr> 89.7 Operating Income Income before Income taxes ( %) Operating Income ( % ) <Decrease Factors> - Increased selling expenses due to sales increase - Increased general administrative expenses, etc. <Increase Factors> - Increase in sales volume and model mix, etc. Revenue, model mix, etc Cost Reduction, etc. Increase in SG&A <Increase Factors> - Cost reduction effects, etc. <Decrease Factors> - Increase in depreciation, etc Increase in R&D Currency Effects Other Income & Expenses Unrealized gains and losses related to derivative instruments (Attachment 2) Other - Currency effects due to difference between average sales rates and transaction rates Other Operating Income Yen (billion) 3Q *Please refer to Attachment 1 regarding currency effects 3Q 12

13 3rd Quarter Financial Results Change in Income before Income Taxes < > Income before Income taxes ( % ) Operating Income ( %) <Decrease Factors> - Advertisement expenses - Increased general administrative expenses, etc. <Increase Factors> - Increase in sales volume and model mix, etc Other Income & Expenses Unrealized gains and losses related to derivative instruments (Attachment 2) Other Yen (billion) Operating Income Revenue, model mix, etc. Cost Reduction, etc. Increase in SG&A <Increase Factors> - Cost reduction effects, etc. <Decrease Factors> - Increase in depreciation - Increased expenses related to new plant start-up, etc. Increase in R&D Currency Effects - Currency effects due to difference between average sales rates and transaction rates Other Operating Income *Please refer to Attachment 1 regarding currency effects 13

14 Motorcycle - Honda Group Unit Sales (Motorcycles + All-Terrain Vehicles, etc.) 3rd Quarter Financial Results 4,300 4,200 Dream Neo (India) <India> - Positive impact of Dream Neo introduction - Increased Activa and Activa I sales <Indonesia> - Increased BeAT FI sales - Positive impact of CB150R and Verza150 introductions <Brazil> - Decreased BIZ100 and CG125 FAN sales ( % ) Unit (thousand) 4,100 4,000 3,900 3,800 3,700 3,600 3,911 3,806 3,815 3,962 4,054 4,216 4,251 1Q 2Q 3Q 4Q 1Q 2Q 3Q Japan North America Europe Asia 3,285 3,162 3,225 3,363 3,479 3,536 3,678 Other Regions Total 3,911 3,806 3,815 3,962 4,054 4,216 4,251 14

15 Motorcycle Business 3rd Quarter Financial Results Net Sales/Operating Income (Margin) Unit (thousand) Honda Group Unit Sales (Consolidated Unit Sales) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 3,806 3,815 3,962 4,054 4,216 (2,304) (2,350) (2,490) (2,371) (2,585) 3,911 (2,366) 4,251 (2,657) Net Sales Yen (billion) Operating Income Operating Margin ( % ) (Currency Effect ) % 8.2% 7.4% 6.7% 10.7% 10.9% 8.6% 12% 8% <Increase Factors> - Increased sales volume and model mix, - Positive currency effects, etc. <Decrease Factors> - Increased SG&A expenses, etc ( % ) % 0% -4% -8% -10 1Q 2Q 3Q 4Q 1Q 2Q 3Q -12% 15

16 3rd Quarter Financial Results Automobiles - Honda Group Unit Sales 1,100 1,050 FIT Hybrid (Japan) <Japan> - Positive impact of fully remodeled FIT and Odyssey - Positive impact of N-WGN introduction <North America> - Increased CR-V, CIVIC and ACCORD sales - Positive impact of fully remodeled ACURA MDX <Asia> - Positive impact of CRIDER and JADE introduction in China -Decreased CITY and JAZZ sales in Thailand Unit (thousand) + 96 ( + 9.7% ) 1, , ,047 1, Q 2Q 3Q 4Q 1Q 2Q 3Q Japan North America Europe Asia Other Regions Total , ,047 1,082 16

17 Automobile Business 3rd Quarter Financial Results Net Sales/Operating Income (Margin) Unit (thousand) Honda Group Unit Sales (Consolidated Unit Sales) 1Q 2Q 3Q 4Q 1Q 2Q 3Q , ,047 (816) (841) (902) (858) (869) 999 (849) 1,082 (900) Net Sales 1, , , , , , ,377.7 Yen (billion) Operating Income Operating Margin ( % ) (Currency Effect ) 12% % % 37.1 <Increase Factors> - Increased sales volume and model mix, - Cost reduction effects, - Positive currency effects, etc. <Decrease Factors> - Increased SG&A expenses, etc. 4.4% 3.7% 3.6% 3.6% ( % ) 6.5% % 8% 6% 4% 2% -30 1Q 2Q 3Q 4Q 1Q 2Q 3Q 0% 17

18 3rd Quarter Financial Results Power Products - Honda Group Unit Sales <North America> - Increased OEM sales of GCV160/190 engines for lawn mowers, high-pressure washers <Other> - Decreased sales of pumps in Middle / Near East -33 ( - 2.8% ) Unit (thousand) 2,500 GCV160 (engine) 2,000 1,500 1, ,625 1,288 1,963 1,589 1,195 1,295 1, Q 2Q 3Q 4Q 1Q 2Q 3Q Japan North America Europe Asia Other Regions Total 1,625 1,288 1,195 1,963 1,589 1,295 1,162 18

19 3rd Quarter Financial Results Power Product & Other Businesses Net Sales/Operating Income (Margin) Unit (thousand) Honda Group Unit Sales (Consolidated Unit Sales) 1Q 2Q 3Q 4Q 1Q 2Q 3Q 1,288 1,195 1,963 1,589 1,295 (1,288) (1,195) (1,963) (1,589) (1,295) 1,625 (1,625) 1,162 (1,162) Net Sales Yen (billion) 40 Operating Income Operating Margin ( % ) (Currency Effect + 7.9) 20% <Increase Factors> - Positive currency effects, etc. <Decrease Factors> - Increased SG&A expenses, 15% 10% % % % - decreased sales volume and model mix in power product business operations, etc % % % 5% 0% -5% % -10% -30 1Q 2Q 3Q 4Q 1Q 2Q 3Q -15% 19

20 3rd Quarter Financial Results Financial Services Business Total Assets/Net Sales/Operating Income (Margin) Total Assets of Finance Subsidiaries 1Q 2Q 3Q 4Q 1Q 2Q 3Q 5, , , , , , ,082.7 Net Sales Yen (billion) 120 Operating Income Operating Margin ( % ) (Currency Effect ) 40% % 28.7% 27.6% 26.4% 26.6% 27.0% 24.0% 30% <Increase Factors> - Positive currency effects, etc. ( % ) 20% 10% % 20-10% 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q -20% 20

21 3rd Quarter Financial Results Net Sales/Operating Income (Margin) by Business Segment < > Unit (thousand) Motorcycle Business Automobile Business Power Product and Other Businesses Financial Services Business Honda Group Unit Sales (Consolidated Unit Sales) 11,532 12,521 2,981 3,128 4,108 4, (7,020) (7,613) (2,506) (2,627) (4,108) (4,046) (-) (-) Net Sales , , , Operating Income : Operating Margin : (%) (10.1%) (8.8%) % (3.7%) (4.9%) (28.9%) (- 1.0%) (- 1.0%) % % (25.8%)

22 Net Sales Japan 3Q , rd Quarter Financial Results Net Sales/Operating Income (Margin) by Geographical Segment < 3rd Qtr> North America 1, Q 1, Europe 3Q Asia 3Q Other Regions 3Q Operating Income : Operating Margin : (%) % % % Q 3Q Q Q % 3Q 22

23 3rd Quarter Financial Results Net Sales/Operating Income (Margin) by Geographical Segment < > Net Sales 250 2,834.1 Japan 3,083.1 Operating Income : Operating Margin : (%) North America 3, , Europe Asia Other Regions , , % % % %

24 Change in Equity in Income of Affiliates 3rd Quarter Financial Results bil. yen ( % ) Q 2Q 3Q 4Q 1Q 2Q 3Q From Asia

25 3rd Quarter Financial Results Consolidated Capital Expenditures < > ( % ) Excluding currency translation effects ( % ) Motorcycle Business Automobile Business Financial Services Business Power product & Other Businesses Currency Translation Effects Capital Expenditure Market average rates US Dollar Euro 9 Months Motorcycle Business 42.6 Automobile Business Financial Services Business 0.2 Power Product & Other Businesses 9.8 Total Months Capital expenditures in results aforementioned exclude investment in operating leases, capital leases and intangible assets 25

26 Topics 3rd Quarter Financial Results - 3rd Quarter Financial Results - Net Sales and Other Operating Revenue - Change in Income before Income Taxes - Business & Geographical Segment Information - Financial Forecasts Kohei Takeuchi Operating Officer and Director Chief Financial Officer 26

27 3rd Quarter Financial Results Forecast: Honda Group Unit Sales Unit (thousand) Motorcycles Automobiles Power Products 17,320 17,095 15,494 4,014 4,430 4,385 6,071 6,000 6, (-1.3%) -45 (-1.0%) + 50 (+ 0.8%) Japan North America Europe Asia Other Regions Total Previous Forecasts ,800 1,845 17,320 Previous Forecast Revised Forecasts ,600 1,820 17,095 Revised Forecast Change Previous Forecasts 825 1, , ,430 Previous Forecast Revised Forecasts 825 1, , ,385 Revised Forecast Change Previous Forecasts 495 Revised Forecasts 2, , ,050 Change , ,485 6,000 Previous Forecast Revised Forecast

28 3rd Quarter Financial Results Forecast: Consolidated Unit Sales Motorcycles Automobiles Power Products Unit (thousand) 9,510 10,650 10,410 3,408 3,670 3,620 6,071 6,000 6, (-2.3%) -50 (-1.4%) + 50 (+ 0.8%) Previous Forecast Revised Forecast Previous Forecast Revised Forecast Previous Forecast Revised Forecast Japan North America Europe Asia Other Regions Total Previous Forecasts ,130 1,845 10,650 Revised Forecasts ,915 1,820 10,410 Change Previous Forecasts 815 1, ,670 Revised Forecasts 815 1, ,620 Change Previous Forecasts 495 Revised Forecasts 2, , ,050 Change , ,485 6,

29 Financial Forecasts (Consolidated) 3rd Quarter Financial Results Results Forecasts Change amount % Change from previous forecasts Net sales & other operating revenue 9, , , % 0.0 Operating income % 0.0 Operating margin 5.5% 6.4% Income before income taxes % Equity in income of affiliates % Net income attributable to Honda Motor Co., Ltd. * % 0.0 EPS attributable to Honda Motor Co., Ltd. (Yen) * For *1 and *4, please refer to footnotes on page 33 Average Rates (Yen) US Dollar Euro (4Q 100) 134 (4Q 135) Yen down by 16 yen Yen down by 26 yen Yen down by 3 yen Yen down by 7 yen 29

30 3rd Quarter Financial Results Forecast: Change in Income before Income Taxes Income before Income taxes ( % ) Operating Income ( % ) Other Income & Expenses Revenue, model mix, etc. Cost Reduction, etc. increase in SG&A Increase in R&D Currency Effects Unrealized gains and losses related to derivative instruments Other Operating Income Operating Income Revised Forecast 30

31 3rd Quarter Financial Results Forecast: Change in Income before Income Taxes Income before Income taxes ( %) Operating Income 0.0 ( 0.0 % ) Other Income & Expenses Revenue, model mix, etc. 0.0 Cost Reduction, etc decrease in SG&A R&D Currency Effects Unrealized gains and losses related to derivative instruments Other Operating Income Operating Income Previous Forecast Revised Forecast 31

32 3rd Quarter Financial Results Forecast: Capital Expenditures, Depreciation, R&D Expenses Results Forecasts Change Change from previous forecasts Capital expenditures * Depreciation and amortization * R&D expenses * Capital expenditures and Depreciation and amortization in results and forecast aforementioned exclude investment in operating leases, capital leases and intangible assets 32

33 Caution with Respect to Forward-Looking Statements: 3rd Quarter Financial Results This slide contains forward-looking statements about the performance of Honda, which are based on management s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that Honda s actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Honda s principal markets and foreign exchange rates between the Japanese yen and the U.S. dollar, the Euro and other major currencies, as well as other factors detailed from time to time. Accounting standards: Our consolidated financial standards are prepared in conformity with U.S. generally accepted accounting principles. Notice on the Factors for Increases and Decreases in Income: With respect to the discussion above of the change in operating income, management has identified the factors set forth below and used what it believes to be a reasonable method to analyze the respective changes in such factors. Each of these factors is explained below. Management has analyzed changes in these factors at the levels of the Company and its material consolidated subsidiaries. (1) Foreign currency effects consist of translation adjustments, which come from the translation of the currency of foreign subsidiaries financial statements into Japanese Yen, and foreign currency adjustments, which result from foreign-currency-denominated sales, which, at the levels of the Company and those consolidated subsidiaries which have been analyzed, primarily relate to the following currencies: U.S. dollar, Canada dollar, Euro, GBP, BRL and Japanese Yen. (2) With respect to cost reduction and effects of raw material cost fluctuations, management has analyzed cost reduction and effects of raw material cost fluctuations at the levels of the Company and its material foreign manufacturing subsidiaries in North America, Europe and other regions. (3) With respect to changes in net sales and model mix, management has analyzed changes in sales volume and in the mix of product models sold in major markets which have resulted in increases/decreases in profit, as well as certain other reasons for increases/decreases in net sales and cost of sales. (4) With respect to selling, general and administrative expenses, management has analyzed reasons for an increase/decrease in selling, general and administrative expenses from the previous fiscal year net of currency translation effects. *1 Net income attributable to company for period indicated. EPS attributable to Honda Motor Co., Ltd., is calculated based on weighted average number of shares outstanding as shown below: *2: 3rd Quarter Results : 1,802,298,000 (approx), : 1,802,293,000 (approx) (page 5) *3: Results : 1,802,299,000 (approx), : 1,802,295,000 (approx) (page 6) *4: Fiscal Year Results and Forecast : 1,802,298,000 (approx), : 1,802,294,000 (approx) (pages 7 and 29) 33

34 3rd Quarter Financial Results -Currency Effects- (effects associated with sales transactions and translation effects) (Attachment 1) JPY / USD JPY / Euro JPY / Others Transactions between other currencies 3Q Q Average Rates (Yen) 3Q Change Yen down by 19 yen Yen down by 33 yen - - Nine Months Difference of average rates *1 (Impact on Operating income) *1:Impact of YoY difference of FOREX to be used for booking revenue of foreign currency transactions Difference between transaction *2 rates and average sales rates (Impact on Other income & expenses) *2:Impact of YoY difference between average FOREX and hedge rates during the period Currency effect associated with sales transaction Currency effect from translation of foreign financial statements (impact on operating income) * *3:Effect due to the difference of the rate used for translating Honda s overseas subsidiaries financial statements denominated in foreign currencies into Japanese yen with the corresponding period of the fiscal year Total

35 3rd Quarter Financial Results (Attachment 2) - Unrealized Gains and Losses Related to Derivative Instruments - 3Q Change Change Foreign currency forward Interest rate swap / Currency swap Others Total

36 3rd Quarter Financial Results 36