FORM 6-K
Table of Contents

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 NOVEMBER 2018

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):  ☐

 

 

 


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Contents

Exhibit 1:

On November 5, 2018, Honda Motor Co., Ltd. filed its consolidated interim financial statements for the fiscal second quarter ended September 30, 2018 with Financial Services Agency in Japan.


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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/ Eiji Fujimura

Eiji Fujimura

General Manager

Finance Division

Honda Motor Co., Ltd.

Date: November 20, 2018


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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Financial Statements

September 30, 2018


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Consolidated Financial Results

Overview of Operating Performance

Honda’s consolidated sales revenue for the six months ended September 30, 2018 increased by 5.0%, to ¥7,865.8 billion from the same period last year, due mainly to increased sales revenue in all business operations. Operating profit increased by 21.7%, to ¥513.8 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 the loss related to the settlement of multidistrict class action litigation in the same period last year. Profit before income taxes increased by 11.0%, to ¥641.3 billion from the same period last year. Profit for the period attributable to owners of the parent increased by 19.3%, to ¥455.1 billion from the same period last year.

Business Segments

Motorcycle Business

For the six months ended September 30, 2017 and 2018

 

     Units (thousands)  
     Honda Group Unit Sales*     Consolidated Unit Sales*  
   Six months
ended
Sep. 30, 2017
     Six months
ended
Sep. 30, 2018
                 Six months
ended
Sep. 30, 2017
     Six months
ended
Sep. 30, 2018
              
   Change     %      Change     %  

Motorcycle Business

     9,937        10,667        730       7.3       6,691        7,148        457       6.8  

Japan

     84        104        20       23.8       84        104        20       23.8  

North America

     163        150        (13     (8.0     163        150        (13     (8.0

Europe

     134        141        7       5.2       134        141        7       5.2  

Asia

     9,023        9,664        641       7.1       5,777        6,145        368       6.4  

Other Regions

     533        608        75       14.1       533        608        75       14.1  

 

*

Honda Group Unit Sales is the total unit sales of completed motorcycle, ATV and side-by-side products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.

Sales revenue from external customers increased by 7.4%, to ¥1,094.2 billion from the same period last year, due mainly to increased consolidated unit sales. Operating profit increased by 20.2%, to ¥177.1 billion from the same period last year, due mainly to an increase in profit attributable to increased sales volume and model mix.


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Automobile Business

For the six months ended September 30, 2017 and 2018

 

     Units (thousands)  
     Honda Group Unit Sales*     Consolidated Unit Sales*  
   Six months
ended
Sep. 30, 2017
     Six months
ended
Sep. 30, 2018
                 Six months
ended
Sep. 30, 2017
     Six months
ended
Sep. 30, 2018
              
   Change     %      Change     %  

Automobile Business

     2,559        2,551        (8     (0.3     1,807        1,827        20       1.1  

Japan

     324        332        8       2.5       295        299        4       1.4  

North America

     933        946           13          1.4       933        946          13          1.4  

Europe

     85        80        (5     (5.9     85        80        (5     (5.9

Asia

     1,093        1,071        (22     (2.0     370        380        10       2.7  

Other Regions

     124        122        (2     (1.6     124        122        (2     (1.6

 

*

Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries and sold through our consolidated subsidiaries are accounted for as operating leases in conformity with IFRS and are not included in consolidated sales revenue to the external customers in our Automobile business. Accordingly, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our Automobile business.

Sales revenue from external customers increased by 3.5%, to ¥5,421.9 billion from the same period last year, due mainly to increased consolidated unit sales. Operating profit increased by 23.4%, to ¥221.5 billion from the same period last year, due mainly to an increase in profit attributable to increased sales volume and model mix as well as the loss related to the settlement of multidistrict class action litigation in the same period last year.

Financial Services Business

Sales revenue from external customers increased by 10.6%, to ¥1,185.9 billion from the same period last year, due mainly to an increase in revenues on disposition of lease vehicles and operating lease revenues. Operating profit increased by 19.8%, to ¥116.3 billion from the same period last year, due mainly to an increase in profit attributable to increased sales revenue.

Power Product and Other Businesses

For the six months ended September 30, 2017 and 2018

 

     Units (thousands)  
     Honda Group Unit Sales/ Consolidated Unit Sales*  
   Six months
ended
Sep. 30, 2017
     Six months
ended
Sep. 30, 2018
              
   Change     %  

Power Product Business

     2,589        2,603        14       0.5  

Japan

     138        161        23       16.7  

North America

     1,141        1,123        (18     (1.6

Europe

     406        402        (4     (1.0

Asia

     741        771        30       4.0  

Other Regions

     163        146        (17     (10.4

 

*

Honda Group Unit Sales is the total unit sales of completed power products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed power products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed power products of Honda and its consolidated subsidiaries. In Power Product business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales since no affiliate and joint venture accounted for using the equity method were involved in the sale of Honda power products.

Sales revenue from external customers increased by 1.9%, to ¥163.6 billion from the same period last year, due mainly to increased consolidated unit sales in Power Product business. Operating loss was ¥1.1 billion, a decrease of ¥0.6 billion from the same period last year, due mainly to decreased operating costs in Other businesses. In addition, operating loss of aircraft and aircraft engines included in the Power Product and other businesses was ¥19.3 billion, a decrease of ¥2.8 billion from the same period last year.


Table of Contents

Cash Flows

Consolidated cash and cash equivalents on September 30, 2018 decreased by ¥5.6 billion from March 31, 2018, to ¥2,250.8 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 ¥397.1 billion of cash inflows. Cash inflows from operating activities decreased by ¥93.9 billion from the same period last year, due mainly to increased payments for parts and raw materials, which was partially offset by increased cash received from customers.

Net cash used in investing activities amounted to ¥376.8 billion of cash outflows. Cash outflows from investing activities increased by ¥68.2 billion from the same period last year, due mainly to increased payments for acquisitions of other financial assets.

Net cash used in financing activities amounted to ¥63.9 billion of cash outflows. Cash outflows from financing activities decreased by ¥50.4 billion from the same period last year, due mainly to a decrease in repayments of financing liabilities, which was partially offset by purchases of treasury stock.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Financial Position

March 31, 2018 and September 30, 2018

 

          Yen (millions)  
Assets    Note    March 31,
2018
    September 30,
2018
 
          unaudited     unaudited  

Current assets:

       

Cash and cash equivalents

      ¥   2,256,488      ¥   2,250,879   

Trade receivables

        800,463       745,835  

Receivables from financial services

        1,840,699       1,894,428  

Other financial assets

        213,177       212,253  

Inventories

        1,523,455       1,604,121  

Other current assets

        291,006       363,476  
     

 

 

   

 

 

 

Total current assets

        6,925,288       7,070,992  
     

 

 

   

 

 

 

Non-current assets:

       

Investments accounted for using the equity method

        679,517       774,314  

Receivables from financial services

        3,117,364       3,462,999  

Other financial assets

        436,555       454,823  

Equipment on operating leases

   6      4,088,133       4,418,596  

Property, plant and equipment

   7      3,062,433       3,041,703  

Intangible assets

        741,514       747,992  

Deferred tax assets

        129,338       136,148  

Other non-current assets

        169,022       160,174  
     

 

 

   

 

 

 

Total non-current assets

        12,423,876       13,196,749  
     

 

 

   

 

 

 

Total assets

      ¥   19,349,164     ¥   20,267,741  
     

 

 

   

 

 

 


Table of Contents
          Yen (millions)  
Liabilities and Equity    Note    March 31,
2018
    September 30,
2018
 
          unaudited     unaudited  

Current liabilities:

       

Trade payables

      ¥ 1,224,627     ¥ 1,102,927  

Financing liabilities

        2,917,261       3,166,869  

Accrued expenses

        404,719       402,147  

Other financial liabilities

        115,405       161,797  

Income taxes payable

        53,595       59,364  

Provisions

   8      305,994       308,206  

Other current liabilities

        602,498       592,743  
     

 

 

   

 

 

 

Total current liabilities

        5,624,099       5,794,053  
     

 

 

   

 

 

 

Non-current liabilities:

       

Financing liabilities

        3,881,749       4,118,490  

Other financial liabilities

        60,005       67,773  

Retirement benefit liabilities

        404,401       444,267  

Provisions

   8      220,625       205,814  

Deferred tax liabilities

        629,722       679,406  

Other non-current liabilities

        294,468       309,274  
     

 

 

   

 

 

 

Total non-current liabilities

        5,490,970       5,825,024  
     

 

 

   

 

 

 

Total liabilities

        11,115,069       11,619,077  
     

 

 

   

 

 

 

Equity:

       

Common stock

        86,067       86,067  

Capital surplus

        171,118       171,228  

Treasury stock

        (113,271     (177,822

Retained earnings

        7,611,332       7,908,774  

Other components of equity

        178,292       374,800  
     

 

 

   

 

 

 

Equity attributable to owners of the parent

        7,933,538       8,363,047  

Non-controlling interests

        300,557       285,617  
     

 

 

   

 

 

 

Total equity

        8,234,095       8,648,664  
     

 

 

   

 

 

 

Total liabilities and equity

      ¥   19,349,164     ¥   20,267,741  
     

 

 

   

 

 

 

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

For the six months ended September 30, 2017 and 2018

 

          Yen (millions)  
     Note    September 30,
2017
    September 30,
2018
 
          unaudited     unaudited  

Sales revenue

   9    ¥   7,489,295     ¥   7,865,845  

Operating costs and expenses:

       

Cost of sales

        (5,863,643     (6,167,404

Selling, general and administrative

        (857,272     (809,945

Research and development

        (346,224     (374,638
     

 

 

   

 

 

 

Total operating costs and expenses

        (7,067,139     (7,351,987
     

 

 

   

 

 

 

Operating profit

        422,156       513,858  
     

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

   5      135,211       118,228  

Finance income and finance costs:

       

Interest income

        18,813       23,324  

Interest expense

        (6,151     (5,957

Other, net

        7,599       (8,129
     

 

 

   

 

 

 

Total finance income and finance costs

        20,261       9,238  
     

 

 

   

 

 

 

Profit before income taxes

        577,628       641,324  

Income tax expense

        (160,475     (145,377
     

 

 

   

 

 

 

Profit for the period

      ¥ 417,153     ¥ 495,947  
     

 

 

   

 

 

 

Profit for the period attributable to:

       

Owners of the parent

        381,341       455,101  

Non-controlling interests

        35,812       40,846  
          Yen  
          September 30,
2017
    September 30,
2018
 

Earnings per share attributable to owners of the parent

       

Basic and diluted

   12    ¥ 211.59     ¥ 257.44  

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

For the six months ended September 30, 2017 and 2018

 

          Yen (millions)  
     Note    September 30,
2017
    September 30,
2018
 
          unaudited     unaudited  

Profit for the period

      ¥      417,153     ¥      495,947  

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

        12,057       434  

Share of other comprehensive income of investments accounted for using the equity method

        (98     (745

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

        —         (41

Exchange differences on translating foreign operations

        86,134       199,376  

Share of other comprehensive income of investments accounted for using the equity method

        11,281       (17,750
     

 

 

   

 

 

 

Total other comprehensive income, net of tax

        109,374       181,274  
     

 

 

   

 

 

 

Comprehensive income for the period

      ¥ 526,527     ¥      677,221  
     

 

 

   

 

 

 

Comprehensive income for the period attributable to:

       

Owners of the parent

        484,686       635,015  

Non-controlling interests

        41,841       42,206  

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

For the three months ended September 30, 2017 and 2018

 

          Yen (millions)  
     Note    September 30,
2017
    September 30,
2018
 
          unaudited     unaudited  

Sales revenue

   9    ¥   3,776,199     ¥   3,841,712  

Operating costs and expenses:

       

Cost of sales

        (2,988,854     (3,004,708

Selling, general and administrative

        (462,449     (438,289

Research and development

        (171,951     (184,240
     

 

 

   

 

 

 

Total operating costs and expenses

        (3,623,254     (3,627,237
     

 

 

   

 

 

 

Operating profit

        152,945       214,475  
     

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

        82,263       63,926  

Finance income and finance costs:

       

Interest income

        9,816       11,411  

Interest expense

        (3,297     (2,994

Other, net

        876       (3,776
     

 

 

   

 

 

 

Total finance income and finance costs

        7,395       4,641  
     

 

 

   

 

 

 

Profit before income taxes

        242,603       283,042  

Income tax expense

        (50,958     (53,817
     

 

 

   

 

 

 

Profit for the period

      ¥ 191,645     ¥ 229,225  
     

 

 

   

 

 

 

Profit for the period attributable to:

       

Owners of the parent

        174,006       210,771  

Non-controlling interests

        17,639       18,454  
          Yen  
          September 30,
2017
    September 30,
2018
 

Earnings per share attributable to owners of the parent

       

Basic and diluted

   12    ¥ 96.55     ¥ 119.66  

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

For the three months ended September 30, 2017 and 2018

 

          Yen (millions)  
     Note    September 30,
2017
     September 30,
2018
 
          unaudited      unaudited  

Profit for the period

      ¥      191,645      ¥      229,225  

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

        6,240        310  

Share of other comprehensive income of investments accounted for using the equity method

        1,084        539  

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

        —          (40

Exchange differences on translating foreign operations

        79,642        127,842  

Share of other comprehensive income of investments accounted for using the equity method

        7,932        (3,909
     

 

 

    

 

 

 

Total other comprehensive income, net of tax

        94,898        124,742  
     

 

 

    

 

 

 

Comprehensive income for the period

      ¥ 286,543      ¥ 353,967  
     

 

 

    

 

 

 

Comprehensive income for the period attributable to:

        

Owners of the parent

        264,831        332,427  

Non-controlling interests

        21,712        21,540  

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Equity

For the six months ended September 30, 2017 and 2018

 

          Yen (millions)  
          Equity attributable to owners of the parent              
    Note     Common
stock
    Capital
surplus
    Treasury
stock
    Retained
earnings
    Other
components of
equity
    Total     Non-controlling
interests
    Total
equity
 

Balance as of April 1, 2017 (unaudited)

    ¥ 86,067     ¥ 171,118     ¥ (26,189   ¥ 6,712,894     ¥ 351,406     ¥ 7,295,296     ¥ 274,330     ¥ 7,569,626  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income for the period

                 

Profit for the period

            381,341         381,341       35,812       417,153  

Other comprehensive income, net of tax

              103,345       103,345       6,029       109,374  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the period

            381,341       103,345       484,686       41,841       526,527  

Reclassification to retained earnings

            739       (739     —           —    

Transactions with owners and other

                 

Dividends paid

    13              (86,509       (86,509     (37,309     (123,818

Purchases of treasury stock

          (4         (4       (4
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

          (4     (86,509       (86,513     (37,309     (123,822
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of September 30, 2017 (unaudited)

    ¥ 86,067     ¥ 171,118     ¥ (26,193   ¥ 7,008,465     ¥ 454,012     ¥ 7,693,469     ¥ 278,862     ¥ 7,972,331  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 
          Yen (millions)  
          Equity attributable to owners of the parent              
    Note     Common
stock
    Capital
surplus
    Treasury
stock
    Retained
earnings
    Other
components of
equity
    Total     Non-controlling
interests
    Total
equity
 

Balance as of April 1, 2018 (unaudited)

    ¥ 86,067     ¥ 171,118     ¥ (113,271   ¥ 7,611,332     ¥ 178,292     ¥ 7,933,538     ¥ 300,557     ¥ 8,234,095  

Effect of changes in accounting policy

                (46,833     (208     (47,041     6       (47,035

Effect of hyperinflation

            (9,454     14,896       5,442         5,442  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Adjusted balance as of April 1, 2018

      86,067       171,118       (113,271     7,555,045       192,980       7,891,939       300,563       8,192,502  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Comprehensive income for the period

                 

Profit for the period

            455,101         455,101       40,846       495,947  

Other comprehensive income, net of tax

              179,914       179,914       1,360       181,274  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total comprehensive income for the period

            455,101       179,914       635,015       42,206       677,221  

Reclassification to retained earnings

            (1,906     1,906       —           —    

Transactions with owners and other

                 

Dividends paid

    13              (95,696       (95,696     (57,152     (152,848

Purchases of treasury stock

          (64,552         (64,552       (64,552

Disposal of treasury stock

          1           1         1  

Share-based payment transactions

        110             110         110  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total transactions with owners and other

        110       (64,551     (95,696       (160,137     (57,152     (217,289
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Other changes

            (3,770       (3,770       (3,770
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Balance as of September 30, 2018 (unaudited)

    ¥ 86,067     ¥ 171,228     ¥ (177,822   ¥ 7,908,774     ¥ 374,800     ¥ 8,363,047     ¥ 285,617     ¥ 8,648,664  
   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

For the six months ended September 30, 2017 and 2018

 

            Yen (millions)  
     Note      September 30,
2017
    September 30,
2018
 
            unaudited     unaudited  

Cash flows from operating activities:

       

Profit before income taxes

      ¥ 577,628     ¥ 641,324  

Depreciation, amortization and impairment losses excluding equipment on operating leases

        351,815       352,269  

Share of profit of investments accounted for using the equity method

        (135,211     (118,228

Finance income and finance costs, net

        18,208       (51,523

Interest income and interest costs from financial services, net

        (62,832     (60,705

Changes in assets and liabilities

       

Trade receivables

        19,816       30,775  

Inventories

        (38,027     (45,257

Trade payables

        (63,482     (58,246

Accrued expenses

        8,035       (68,534

Provisions and retirement benefit liabilities

        (50,983     1,389  

Receivables from financial services

        (11,620     (106,677

Equipment on operating leases

        (108,962     (94,718

Other assets and liabilities

        (7,709     (30,181

Other, net

        (2,690     2,343  

Dividends received

        62,090       84,022  

Interest received

        117,546       130,371  

Interest paid

        (54,613     (67,779

Income taxes paid, net of refunds

        (127,905     (143,450
     

 

 

   

 

 

 

Net cash provided by operating activities

        491,104       397,195  

Cash flows from investing activities:

       

Payments for additions to property, plant and equipment

        (236,063     (224,775

Payments for additions to and internally developed intangible assets

        (72,710     (89,682

Proceeds from sales of property, plant and equipment and intangible assets

        10,293       13,882  

Payments for acquisitions of investments accounted for using the equity method

        (2,450     (2,401

Payments for acquisitions of other financial assets

        (92,946     (311,231

Proceeds from sales and redemptions of other financial assets

        84,498       237,321  

Other, net

        719       —    
     

 

 

   

 

 

 

Net cash used in investing activities

        (308,659     (376,886

Cash flows from financing activities:

       

Proceeds from short-term financing liabilities

        3,921,076       3,803,313  

Repayments of short-term financing liabilities

        (3,804,854     (3,778,832

Proceeds from long-term financing liabilities

        695,549       851,623  

Repayments of long-term financing liabilities

        (784,848     (706,970

Dividends paid to owners of the parent

        (86,509     (95,696

Dividends paid to non-controlling interests

        (32,118     (47,423

Purchases and sales of treasury stock, net

        (4     (64,551

Other, net

        (22,691     (25,380
     

 

 

   

 

 

 

Net cash used in financing activities

        (114,399     (63,916

Effect of exchange rate changes on cash and cash equivalents

        33,803       37,998  
     

 

 

   

 

 

 

Net change in cash and cash equivalents

        101,849       (5,609

Cash and cash equivalents at beginning of year

        2,105,976       2,256,488  
     

 

 

   

 

 

 

Cash and cash equivalents at end of period

      ¥ 2,207,825     ¥ 2,250,879  
     

 

 

   

 

 

 

See accompanying notes to condensed consolidated interim financial statements.


Table of Contents

 

1

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(1) Reporting Entity

Honda Motor Co., Ltd. (the “Company”) is a public company domiciled in Japan. The Company and its subsidiaries (collectively “Honda”) develop, manufacture and distribute motorcycles, automobiles, power products and others throughout the world, and also provide financial services to customers and dealers for the sale of those products. Principal manufacturing facilities are located in Japan, the United States of America, Canada, Mexico, the United Kingdom, Turkey, Italy, France, China, India, Indonesia, Malaysia, Thailand, Vietnam, Argentina and Brazil.

(2) Basis of Preparation

 (a) Compliance with Interim Financial Reporting Standards

The condensed consolidated interim financial statements of the Company have been prepared in accordance with IAS 34 “Interim Financial Reporting”. The condensed consolidated interim financial statements should be read in conjunction with the Company’s consolidated financial statements for the fiscal year ended March 31, 2018, since the condensed consolidated interim financial statements do not include all the information required in the annual consolidated financial statements, which have been prepared in accordance with International Financial Reporting Standards (“IFRS”) as issued by the International Accounting Standards Board.

 (b) Functional Currency and Presentation Currency

The condensed consolidated interim financial statements are presented in Japanese yen, which is the functional currency of the Company. All financial information presented in Japanese yen has been rounded to the nearest million Japanese yen, except when otherwise indicated.

 (c) Use of Estimates and Judgments

The preparation of condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies, the reported amount of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. These estimates and underlying assumptions are reviewed on a continuous basis. Changes in these accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

The condensed consolidated interim financial statements are prepared based on the same judgments and estimations as those applied and described in the Company’s consolidated financial statements for the fiscal year ended March 31, 2018.


Table of Contents

 

2

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(3) Summary of Significant Accounting Policies

The condensed consolidated interim financial statements are prepared based on the same accounting policies as those applied and described in the Company’s consolidated financial statements for the fiscal year ended March 31, 2018, except for the changes below.

(a) IFRS 9 “Financial Instruments”

Honda was an early adopter of IFRS 9 “Financial Instruments” issued in November 2009, amended in October 2010 and November 2013 (“IFRS 9 (2013)”) prior to the year ended March 31, 2018 and has adopted IFRS 9 issued in July 2014 (“IFRS 9 (2014)”) with a date of initial application of April 1, 2018. The adoption of IFRS 9 (2014) resulted in changes in accounting policies primarily for classification and impairment of financial assets. IFRS 9 (2014) has an exemption allowing comparative information for prior periods not to be restated with respect to classification and measurement (including impairment) changes. Therefore, the comparative information has not been restated and continues to be reported under IFRS 9 (2013). Instead, the cumulative effect of adopting IFRS 9 (2014) was recognized in the opening balance of equity as of the date of initial application on April 1, 2018. The following are primary changes and corresponding impacts of adopting IFRS 9 (2014).

Classification of financial assets

Debt securities other than those classified into financial assets measured at amortized cost were classified into financial assets measured at fair value through profit or loss under IFRS 9 (2013). IFRS 9 (2014) newly established a classification in which financial assets are measured at fair value through other comprehensive income. Under IFRS 9 (2014), a financial asset shall be measured at fair value through other comprehensive income if both of the following conditions are met: 1) the financial asset is held within a business model whose objective is achieved by both collecting contractual cash flows and selling financial assets and 2) the contractual terms of the financial asset give rise on specified dates to cash flows that are solely payments of principal and interest on the principal amount outstanding.

Honda has evaluated the business models within which financial assets are held and contractual terms of financial assets. As a result, Honda has reclassified debt securities such as government bonds and municipal bonds held by certain subsidiaries from the financial assets measured at fair value through profit or loss to financial assets measured at fair value through other comprehensive income as of April 1, 2018.

The impact of this reclassification is as follows:

 

     Yen (millions)  
     Carrying amounts
as of March 31,
2018 under
IFRS 9 (2013)
     Reclassification     Carrying amounts
as of April 1,
2018 under
IFRS 9 (2014)
 

Other financial assets:

       

Financial assets measured at fair value through profit or loss:

       

Debt securities

   ¥ 69,829      ¥ (14,376   ¥ 55,453  

Financial assets measured at fair value through other comprehensive income:

       

Debt securities

     —          14,376       14,376  


Table of Contents

 

3

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

Impairment of financial assets

IFRS 9 (2014) replaced the incurred loss model under IAS 39 with the expected credit loss (ECL) model. The ECL model requires the allowance for credit losses to be measured at amounts equal to either lifetime ECL for those financial assets which have experienced a significant increase in credit risk (SICR) since initial recognition or 12-month ECL for financial assets which have not experienced a SICR. Lifetime ECL represents ECL that results from all possible default events over the expected life of a financial asset. 12-month ECL is the portion of lifetime ECL that results from default events that are possible within 12 months after the reporting date. ECL is a probability-weighted estimate of the difference between the contractual cash flows and the cash flows that the entity expects to receive, discounted at the original effective interest rates.

When determining whether credit risk has increased significantly, Honda assesses financial assets either individually based primarily on delinquencies or collectively for groups of financial assets with shared risk characteristics such as the period of initial recognition, collateral type, original term and credit score considering relative changes in expected default rates since initial recognition.

The application of the ECL model resulted in an increase in the allowance for credit losses of ¥4,599 million as of April 1, 2018, which is on receivables from financial services.

(b) IFRS 15 “Revenue from Contracts with Customers”

Honda has adopted IFRS 15 ”Revenue from Contracts with Customers” with a date of initial application of April 1, 2018 by recognizing the cumulative effect of initially applying this standard as an adjustment to the opening balance of equity at the date of initial application. Therefore, the comparative information has not been restated and continues to be reported under the previous accounting policy.

Honda’s contracts with customers include promises to transfer goods or services without charges such as free inspections. Such promised goods or services are generally considered performance obligations and related sales revenue is deferred under IFRS 15, if it is deemed material, while such sales was recognized at contract inception under the previous accounting policy.

Further, under IFRS 15, dealer incentives are considered variable consideration when determining the transaction price and sales revenue is recognized only to the extent that it is highly probable that a significant reversal will not occur when the uncertainty associated with the variable consideration is subsequently resolved, which results in higher deductions from sales revenue recognized when products are sold to dealers.


Table of Contents

 

4

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

The impacts of adopting IFRS 15 on Honda’s condensed consolidated financial statements as of and for the six months and the three months ended September 30, 2018 are as follows:

(Condensed Consolidated Statements of Financial Position)

As of September 30, 2018

 

     Yen (millions)  
     Balances without
adoption of
IFRS 15
    Adjustments     As reported  
Assets                                                                

Current assets:

      

Cash and cash equivalents

   ¥   2,250,879      ¥ —       ¥   2,250,879   

Trade receivables

     747,596       (1,761     745,835  

Receivables from financial services

     1,894,428       —         1,894,428  

Other financial assets

     212,253       —         212,253  

Inventories

     1,604,121       —         1,604,121  

Other current assets

     362,670       806       363,476  
  

 

 

   

 

 

   

 

 

 

Total current assets

     7,071,947       (955     7,070,992  
  

 

 

   

 

 

   

 

 

 

Non-current assets:

      

Investments accounted for using the equity method

     774,303       11       774,314  

Receivables from financial services

     3,462,999       —         3,462,999  

Other financial assets

     454,823       —         454,823  

Equipment on operating leases

     4,418,596       —         4,418,596  

Property, plant and equipment

     3,041,703       —         3,041,703  

Intangible assets

     747,992       —         747,992  

Deferred tax assets

     135,864       284       136,148  

Other non-current assets

     159,368       806        160,174  
  

 

 

   

 

 

   

 

 

 

Total non-current assets

     13,195,648          1,101        13,196,749  
  

 

 

   

 

 

   

 

 

 

Total assets

     20,267,595       146       20,267,741  
  

 

 

   

 

 

   

 

 

 


Table of Contents

 

5

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

     Yen (millions)  
     Balances without
adoption of
IFRS 15
    Adjustments     As reported  
Liabilities and Equity                   

Current liabilities:

      

Trade payables

   ¥ 1,102,927     ¥ —       ¥ 1,102,927  

Financing liabilities

     3,166,869       —         3,166,869  

Accrued expenses

     384,249       17,898       402,147  

Other financial liabilities

     161,797       —         161,797  

Income taxes payable

     59,364       —         59,364  

Provisions

     312,122       (3,916     308,206  

Other current liabilities

     577,312       15,431       592,743  
  

 

 

   

 

 

   

 

 

 

Total current liabilities

     5,764,640       29,413       5,794,053  
  

 

 

   

 

 

   

 

 

 

Non-current liabilities:

      

Financing liabilities

     4,118,490       —         4,118,490  

Other financial liabilities

     67,773       —         67,773  

Retirement benefit liabilities

     444,267       —         444,267  

Provisions

     206,817       (1,003     205,814  

Deferred tax liabilities

     686,050       (6,644     679,406  

Other non-current liabilities

     308,090       1,184       309,274  
  

 

 

   

 

 

   

 

 

 

Total non-current liabilities

     5,831,487       (6,463     5,825,024  
  

 

 

   

 

 

   

 

 

 

Total liabilities

     11,596,127       22,950       11,619,077  
  

 

 

   

 

 

   

 

 

 

Equity:

      

Common stock

     86,067       —         86,067  

Capital surplus

     171,228       —         171,228  

Treasury stock

     (177,822     —         (177,822

Retained earnings

     7,929,606       (20,832     7,908,774  

Other components of equity

     376,711       (1,911     374,800  
  

 

 

   

 

 

   

 

 

 

Equity attributable to owners of the parent

     8,385,790       (22,743     8,363,047  

Non-controlling interests

     285,678       (61     285,617  
  

 

 

   

 

 

   

 

 

 

Total equity

     8,671,468       (22,804     8,648,664  
  

 

 

   

 

 

   

 

 

 

Total liabilities and equity

     20,267,595       146       20,267,741  
  

 

 

   

 

 

   

 

 

 


Table of Contents

 

6

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(Condensed Consolidated Statements of Income)

For the six months ended September 30, 2018

 

     Yen (millions)  
     Balances without
adoption of
IFRS 15
    Adjustments     As reported  

Sales revenue

   ¥ 7,833,991     ¥ 31,854     ¥ 7,865,845  

Operating costs and expenses:

      

Cost of sales

     (6,168,841     1,437       (6,167,404

Selling, general and administrative

     (810,760     815       (809,945

Research and development

     (374,638     —         (374,638
  

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     (7,354,239     2,252       (7,351,987
  

 

 

   

 

 

   

 

 

 

Operating profit

     479,752        34,106       513,858  
  

 

 

   

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

     118,227       1       118,228  

Finance income and finance costs:

      

Interest income

     23,324       —         23,324  

Interest expense

     (5,957     —         (5,957

Other, net

     (8,129     —         (8,129
  

 

 

   

 

 

   

 

 

 

Total finance income and finance costs

     9,238       —         9,238  
  

 

 

   

 

 

   

 

 

 

Profit before income taxes

     607,217       34,107       641,324  

Income tax expense

     (136,604     (8,773     (145,377
  

 

 

   

 

 

   

 

 

 

Profit for the period

         470,613       25,334            495,947  
  

 

 

   

 

 

   

 

 

 

Profit for the period attributable to:

      

Owners of the parent

     429,291       25,810       455,101  

Non-controlling interests

     41,322       (476     40,846  

For the three months ended September 30, 2018

 

     Yen (millions)  
     Balances without
adoption of
IFRS 15
    Adjustments     As reported  

Sales revenue

   ¥ 3,828,310     ¥ 13,402     ¥ 3,841,712  

Operating costs and expenses:

      

Cost of sales

     (3,005,377     669       (3,004,708

Selling, general and administrative

     (438,646     357       (438,289

Research and development

     (184,240     —         (184,240
  

 

 

   

 

 

   

 

 

 

Total operating costs and expenses

     (3,628,263     1,026       (3,627,237
  

 

 

   

 

 

   

 

 

 

Operating profit

     200,047        14,428       214,475  
  

 

 

   

 

 

   

 

 

 

Share of profit of investments accounted for using the equity method

     63,925       1       63,926  

Finance income and finance costs:

      

Interest income

     11,411       —         11,411  

Interest expense

     (2,994     —         (2,994

Other, net

     (3,776     —         (3,776
  

 

 

   

 

 

   

 

 

 

Total finance income and finance costs

     4,641       —         4,641  
  

 

 

   

 

 

   

 

 

 

Profit before income taxes

     268,613       14,429       283,042  

Income tax expense

     (49,859     (3,958     (53,817
  

 

 

   

 

 

   

 

 

 

Profit for the period

          218,754       10,471            229,225  
  

 

 

   

 

 

   

 

 

 

Profit for the period attributable to:

      

Owners of the parent

     199,849       10,922       210,771  

Non-controlling interests

     18,905       (451     18,454  


Table of Contents

 

7

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(4) Segment Information

Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Power Product 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

Power Product and Other Businesses

   Power products and relevant parts, and others    Research and development
Manufacturing
Sales and related services
Others

   (a) Segment Information

Segment information as of and for the six months ended September 30, 2017 and 2018 is as follows:

As of and for the six months ended September 30, 2017

 

                                  
     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Power
Product
and Other
Businesses
    Segment
Total
     Reconciling
Items
    Consolidated  

Sales revenue:

                  

External customers

   ¥ 1,018,649      ¥ 5,237,800      ¥ 1,072,192      ¥ 160,654     ¥ 7,489,295      ¥ —       ¥ 7,489,295  

Intersegment

     —          79,854        7,061        10,263       97,178        (97,178     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

        1,018,649           5,317,654           1,079,253           170,917          7,586,473        (97,178     7,489,295  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

   ¥ 147,362      ¥ 179,567      ¥ 97,115      ¥ (1,888   ¥ 422,156      ¥ —       ¥ 422,156  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment assets

   ¥ 1,456,075      ¥ 7,845,059      ¥ 9,688,731      ¥ 314,363     ¥ 19,304,228      ¥    222,851     ¥    19,527,079  

Depreciation and amortization

     37,138        304,915        367,541        7,610       717,204        —         717,204  

Capital expenditures

     22,047        251,843        938,163        4,445       1,216,498        —         1,216,498  


Table of Contents

 

8

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

                                  
As of and for the six months ended September 30, 2018

 

     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Power
Product
and Other
Businesses
    Segment
Total
     Reconciling
Items
    Consolidated  

Sales revenue:

                  

External customers

   ¥ 1,094,226      ¥ 5,421,971      ¥ 1,185,980      ¥ 163,668     ¥ 7,865,845      ¥ —       ¥ 7,865,845  

Intersegment

     —          93,384        7,486        11,136       112,006        (112,006     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

       1,094,226        5,515,355        1,193,466        174,804       7,977,851        (112,006     7,865,845  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

   ¥ 177,174      ¥ 221,506      ¥ 116,372      ¥ (1,194   ¥ 513,858      ¥ —       ¥ 513,858  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment assets

   ¥ 1,458,540      ¥   7,984,546      ¥   10,153,832      ¥   316,353     ¥   19,913,271      ¥   354,470     ¥   20,267,741  

Depreciation and amortization

     33,942        309,249        384,060        7,227       734,478        —         734,478  

Capital expenditures

     23,957        238,173        1,000,337        5,493       1,267,960        —         1,267,960  

Segment information for the three months ended September 30, 2017 and 2018 is as follows:

 

For the three months ended September 30, 2017

 

     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Power
Product
and Other
Businesses
    Segment
Total
     Reconciling
Items
    Consolidated  

Sales revenue:

                  

External customers

   ¥   510,109      ¥   2,647,865      ¥   535,235      ¥   82,990     ¥   3,776,199      ¥ —       ¥   3,776,199  

Intersegment

     —          45,219        4,329        4,814       54,362        (54,362     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     510,109        2,693,084        539,564        87,804       3,830,561        (54,362     3,776,199  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

   ¥ 68,520      ¥ 39,223      ¥ 47,251      ¥ (2,049   ¥ 152,945      ¥ —       ¥ 152,945  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 
For the three months ended September 30, 2018

 

     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Power
Product
and Other
Businesses
    Segment
Total
     Reconciling
Items
    Consolidated  

Sales revenue:

                  

External customers

   ¥   539,319      ¥   2,624,635      ¥   596,085      ¥   81,673     ¥   3,841,712      ¥ —       ¥   3,841,712  

Intersegment

     —          45,529        4,196        5,289       55,014        (55,014     —    
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Total

     539,319        2,670,164        600,281        86,962       3,896,726        (55,014     3,841,712  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

Segment profit (loss)

   ¥ 85,044      ¥ 69,825      ¥ 59,193      ¥ 413     ¥ 214,475      ¥ —       ¥ 214,475  
  

 

 

    

 

 

    

 

 

    

 

 

   

 

 

    

 

 

   

 

 

 

 

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 prices.

 

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 September 30, 2017 and 2018 amounted to ¥581,929 million and ¥633,623 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.


Table of Contents

 

9

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

   (b) 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 six months ended September 30, 2017

 

                                                                                                                                       
    Yen (millions)  
    Japan     North
America
    Europe     Asia     Other
Regions
    Total     Reconciling
Items
    Consolidated  

Sales revenue:

               

External customers

  ¥ 1,055,330     ¥ 3,945,541     ¥ 324,829     ¥ 1,760,360     ¥ 403,235     ¥ 7,489,295     ¥ —       ¥ 7,489,295  

Inter-geographic areas

    1,027,958       252,567       97,404       315,556       3,268       1,696,753       (1,696,753     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    2,083,288       4,198,108       422,233       2,075,916       406,503       9,186,048       (1,696,753     7,489,295  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit (loss)

  ¥ 55,860     ¥ 100,929     ¥ 9,182     ¥ 208,146     ¥ 26,731     ¥ 400,848     ¥ 21,308     ¥ 422,156  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Assets

  ¥ 4,175,437     ¥ 10,988,524     ¥ 685,662     ¥ 2,901,384     ¥ 677,984     ¥ 19,428,991     ¥ 98,088     ¥ 19,527,079  

Non-current assets other than financial instruments and deferred tax assets

  ¥ 2,482,510     ¥ 4,914,567     ¥ 108,873     ¥ 701,566     ¥ 178,159     ¥ 8,385,675     ¥ —       ¥ 8,385,675  
As of and for the six months ended September 30, 2018

 

    Yen (millions)  
    Japan     North
America
    Europe     Asia     Other
Regions
    Total     Reconciling
Items
    Consolidated  

Sales revenue:

               

External customers

  ¥ 1,129,949     ¥ 4,192,771     ¥ 318,832     ¥ 1,848,097     ¥ 376,196     ¥ 7,865,845     ¥ —       ¥ 7,865,845  

Inter-geographic areas

    1,215,912       251,798       129,199       361,264       3,602       1,961,775       (1,961,775     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    2,345,861       4,444,569       448,031       2,209,361       379,798       9,827,620       (1,961,775     7,865,845  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit (loss)

  ¥ 42,114     ¥ 163,843     ¥ 7,271     ¥ 250,109     ¥ 30,625     ¥ 493,962     ¥ 19,896     ¥ 513,858  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Assets

  ¥ 4,373,170     ¥ 11,496,432     ¥ 683,043     ¥ 3,039,075     ¥ 620,567     ¥ 20,212,287     ¥ 55,454     ¥ 20,267,741  

Non-current assets other than financial instruments and deferred tax assets

  ¥ 2,596,051     ¥ 4,857,844     ¥ 97,064     ¥ 671,714     ¥ 145,792     ¥ 8,368,465     ¥ —       ¥ 8,368,465  
For the three months ended September 30, 2017

 

    Yen (millions)  
    Japan     North
America
    Europe     Asia     Other
Regions
    Total     Reconciling
Items
    Consolidated  

Sales revenue:

               

External customers

  ¥ 547,386     ¥ 1,936,664     ¥ 158,081     ¥ 933,264     ¥ 200,804     ¥ 3,776,199     ¥ —       ¥ 3,776,199  

Inter-geographic areas

    510,878       131,319       50,885       160,950       1,837       855,869       (855,869     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    1,058,264       2,067,983       208,966       1,094,214       202,641       4,632,068       (855,869     3,776,199  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit (loss)

  ¥ 34,324     ¥ (660   ¥ 2,529     ¥ 110,313     ¥ 12,001     ¥ 158,507     ¥ (5,562   ¥ 152,945  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 


Table of Contents

 

10

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

                                                                                                                                       
For the three months ended September 30, 2018

 

    Yen (millions)  
    Japan     North
America
    Europe     Asia     Other
Regions
    Total     Reconciling
Items
    Consolidated  

Sales revenue:

               

External customers

  ¥ 575,806     ¥ 2,015,472     ¥ 145,853     ¥ 929,374     ¥ 175,207     ¥ 3,841,712     ¥ —       ¥ 3,841,712  

Inter-geographic areas

    629,840       115,747       64,937       184,275       1,256       996,055       (996,055     —    
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Total

    1,205,646       2,131,219       210,790       1,113,649       176,463       4,837,767       (996,055     3,841,712  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

Operating profit (loss)

  ¥ 27,402     ¥ 53,483     ¥ 236     ¥ 127,595     ¥ 7,990     ¥ 216,706     ¥ (2,231)     ¥ 214,475  
 

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

   

 

 

 

 

Explanatory notes:

 

1.

Major countries or regions in each geographic area:

 

North America    United States, Canada, Mexico
Europe    United Kingdom, Germany, Belgium, Turkey, Italy
Asia    Thailand, Indonesia, China, India, Vietnam
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 prices.

 

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 September 30, 2017 and 2018 amounted to ¥581,929 million and ¥633,623 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) Reversal of impairment loss on investments accounted for using the equity method

For the six months ended September 30, 2017, the Company recognized reversal of impairment losses of ¥15,782 million, which had been previously recognized, on certain investments accounted for using the equity method mainly due to the recovery of quoted market values. The reversal of impairment losses is included in share of profit of investments accounted for using the equity method in the condensed consolidated statement of income. For the six months ended September 30, 2018, the Company did not recognize any significant reversal of impairment losses.

(6) Equipment on Operating Leases

The additions to equipment on operating leases for the six months ended September 30, 2017 and 2018 are ¥937,033 million and ¥999,096 million, respectively.

The sales or disposals of equipment on operating leases for the six months ended September 30, 2017 and 2018 are ¥454,485 million and ¥514,878 million, respectively.

(7) Property, Plant and Equipment

The additions to property, plant and equipment for the six months ended September 30, 2017 and 2018 are ¥225,581 million and ¥206,631 million, respectively.

The sales or disposals of property, plant and equipment for the six months ended September 30, 2017 and 2018 are ¥22,493 million and ¥24,778 million, respectively.


Table of Contents

 

11

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(8) Provisions

The components of and changes in provisions for the six months ended September 30, 2018 are as follows:

 

     Yen (millions)  
     Product
warranties*
    Other     Total  

Balance as of March 31, 2018

   ¥ 457,596     ¥ 69,023     ¥ 526,619  
  

 

 

   

 

 

   

 

 

 

Effect of changes in accounting policy

     (4,536     —         (4,536
  

 

 

   

 

 

   

 

 

 

Balance as of April 1, 2018

     453,060       69,023       522,083  
  

 

 

   

 

 

   

 

 

 

Provision

   ¥ 91,228     ¥ 13,687     ¥ 104,915  

Charge-offs

     (101,528     (12,190     (113,718

Reversal

     (5,906     (7,976     (13,882

Exchange differences on translating foreign operations

     12,479       2,143       14,622  
  

 

 

   

 

 

   

 

 

 

Balance as of September 30, 2018

   ¥ 449,333     ¥ 64,687     ¥ 514,020  
  

 

 

   

 

 

   

 

 

 

Current liabilities and non-current liabilities of provisions as of March 31, 2018 and September 30, 2018 are as follows:

 

     Yen (millions)  
     As of March 31,
2018
     As of September 30,
2018
 

Current liabilities

   ¥ 305,994      ¥ 308,206  

Non-current liabilities

     220,625        205,814  
  

 

 

    

 

 

 

Total

   ¥ 526,619      ¥ 514,020  
  

 

 

    

 

 

 

 

Explanatory notes:

 

*

Honda recognizes provisions for product warranties to cover future product warranty expenses. Honda recognizes costs for general warranties on products Honda sells and for specific warranty programs, including product recalls. Honda recognizes general estimated warranty costs at the time products are sold to customers. Honda also recognizes specific estimated warranty program 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. These provisions are estimated based on historical warranty claim experience with consideration given to the expected level of future warranty costs as well as current information on repair costs. Provision for product warranties are utilized for expenditures based on the demand from customers and dealers.


Table of Contents

 

12

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(9) Sales Revenue

As stated in Note 4, Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Power Product and other businesses.

The sales revenue disaggregated by geographical markets based on the location of the customer and the reconciliation of the disaggregated revenue with the four reportable segments for the six months and the three months ended September 30, 2018 are as follows:

For the six months ended September 30, 2018

 

     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Power
Product
and Other
Businesses
     Total  

Revenue arising from Contracts with Customers

              

Japan

   ¥ 40,375      ¥ 746,098      ¥ 43,934      ¥ 40,269      ¥ 870,676  

North America

     97,735        3,005,779        527,833        62,934        3,694,281  

Europe

     89,407        200,553        —          27,569        317,529  

Asia

     719,692        1,208,405        31        24,304        1,952,432  

Other Regions

     147,016        253,882        —          8,592        409,490  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥   1,094,225      ¥   5,414,717      ¥ 571,798      ¥ 163,668      ¥ 7,244,408  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Revenue arising from the other sources*

     1        7,254        614,182        —          621,437  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥ 1,094,226      ¥ 5,421,971      ¥   1,185,980      ¥   163,668      ¥   7,865,845  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

For the three months ended September 30, 2018

 

     Yen (millions)  
     Motorcycle
Business
     Automobile
Business
     Financial
Services
Business
     Power
Product
and Other
Businesses
     Total  

Revenue arising from Contracts with Customers

              

Japan

   ¥ 20,749      ¥ 381,321      ¥ 20,028      ¥ 22,674      ¥ 444,772  

North America

     53,182        1,413,802        262,972        30,498        1,760,454  

Europe

     37,676        95,817        —          12,088        145,581  

Asia

     359,176        614,406        5        12,248        985,835  

Other Regions

     68,535        117,699        —          4,165        190,399  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥ 539,318      ¥ 2,623,045      ¥ 283,005      ¥ 81,673      ¥ 3,527,041  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Revenue arising from the other sources*

     1        1,590        313,080        —          314,671  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥   539,319      ¥   2,624,635      ¥   596,085      ¥   81,673      ¥   3,841,712  
  

 

 

    

 

 

    

 

 

    

 

 

    

 

 

 

 

Explanatory notes:

 

*

Revenue arising from the other sources primarily includes lease revenues recognized under IAS 17 and interest recognized under IFRS 9.


Table of Contents

 

13

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(10) Fair Value

(a) Definition of Fair Value Hierarchy

Honda uses a three-level hierarchy when measuring fair value. The following is a description of the three hierarchy levels:

 

Level 1    Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date
Level 2    Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly
Level 3    Unobservable inputs for the assets or liabilities

The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest input that is significant to the fair value measurement in its entirety. Honda recognizes the transfers between the levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

(b) Method of Fair Value Measurement

The fair values of assets and liabilities are determined based on relevant market information and through the use of an appropriate valuation method.

The measurement methods and assumptions used in the measurement of assets and liabilities are as follows:

(Cash and cash equivalents, trade receivables and trade payables)

The fair values approximate their carrying amounts due to their short-term maturities.

(Receivables from financial services)

The fair value of receivables from financial services is measured primarily by discounting future cash flows using the current interest rates applicable for these receivables of similar remaining maturities. Fair value measurement for receivables from financial services is classified as Level 3.

(Debt securities)

Debt securities consist mainly of mutual funds, corporate bonds, local bonds and auction rate securities.

The fair value of mutual funds with an active market is measured by using quoted market prices. Fair value measurement for mutual funds with an active market is classified as Level 1.

The fair values of corporate bonds and local bonds are measured based on proprietary pricing models provided by specialists and/or market makers and the models obtain a wide array of market observable inputs such as credit ratings and discount rates. Fair value measurements for corporate bonds and local bonds are classified as Level 2.


Table of Contents

 

14

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

The subsidiary’s auction rate securities are A to AAA rated and are insured by qualified guarantee agencies, and reinsured by the Secretary of Education and the United States government, and guaranteed at approximately 95% by the United States government. To measure fair value of auction rate securities, Honda uses a third-party-developed valuation model which obtains a wide array of market observable inputs, as well as unobservable inputs including probability of passing or failing auction at each auction. Fair value measurement for auction rate securities is classified as Level 3.

(Equity securities)

The fair value of equity securities with an active market is measured by using quoted market prices. Fair value measurement for equity securities with an active market is classified as Level 1.

The fair value of equity securities with no active market is measured mainly by using the comparable company valuation method and other appropriate valuation methods. Fair value measurement for equity securities with no active market is classified as Level 3.

Price book-value ratio (PBR) of a comparable company are used as a significant unobservable input in the fair value measurement of equity securities classified as Level 3. The fair value increases (decreases) as PBR of a comparable company rise (decline). Such fair value measurements are conducted in accordance with the group accounting policy approved by the appropriate person of authority and based upon valuation methods determined by a valuator such as personnel in accounting divisions of Honda.

(Derivatives)

Derivatives consist mainly of foreign currency forward exchange contracts, foreign currency option contracts, currency swap agreements and interest rate swap agreements.

The fair values of foreign currency forward exchange contracts and foreign currency option contracts are measured by using market observable inputs such as spot exchange rates, discount rates and implied volatility. The fair values of currency swap agreements and interest rate swap agreements are measured by discounting future cash flows using market observable inputs such as LIBOR rates, swap rates, and foreign exchange rates. Fair value measurements for these derivatives are classified as Level 2.

The credit risk of the counterparties is considered in the valuation of derivatives.

(Financing liabilities)

The fair value of financing liabilities is measured by discounting future cash flows using interest rates currently available for liabilities of similar terms and remaining maturities. Fair value measurement of financing liabilities is mainly classified as Level 2.


Table of Contents

 

15

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(c) Assets and Liabilities Measured at Fair Value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2018 and September 30, 2018 consist of the following:

 

     Yen (millions)  

As of March 31, 2018

   Level 1      Level 2      Level 3      Total  

Other financial assets:

           

Financial assets measured at fair value through profit or loss:

           

Derivatives

           

Foreign exchange instruments

   ¥ —        ¥ 38,926      ¥ —        ¥ 38,926  

Interest rate instruments

     —          49,419        —          49,419  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —          88,345        —          88,345  
  

 

 

    

 

 

    

 

 

    

 

 

 

Debt securities

     26,763        37,860        5,206        69,829  

Financial assets measured at fair value through other comprehensive income:

           

Debt securities

     —          —          —          —    

Equity securities

     198,011        —          12,671        210,682  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥   224,774      ¥   126,205      ¥   17,877      ¥   368,856  
  

 

 

    

 

 

    

 

 

    

 

 

 

Other financial liabilities:

           

Financial liabilities measured at fair value through profit or loss:

           

Derivatives

           

Foreign exchange instruments

   ¥ —        ¥ 16,417      ¥ —        ¥ 16,417  

Interest rate instruments

     —          36,369        —          36,369  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —          52,786        —          52,786  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥ —        ¥ 52,786      ¥ —        ¥ 52,786  
  

 

 

    

 

 

    

 

 

    

 

 

 

There were no transfers between Level 1 and Level 2 for the year ended March 31, 2018.

 

     Yen (millions)  

As of September 30, 2018

   Level 1      Level 2      Level 3      Total  

Other financial assets:

           

Financial assets measured at fair value through profit or loss:

           

Derivatives

           

Foreign exchange instruments

   ¥ —        ¥ 22,762      ¥ —        ¥ 22,762  

Interest rate instruments

     —          56,127        —          56,127  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —          78,889        —          78,889  
  

 

 

    

 

 

    

 

 

    

 

 

 

Debt securities

     25,918        28,715        5,565        60,198  

Financial assets measured at fair value through other comprehensive income:

           

Debt securities

     —          12,727        —          12,727  

Equity securities

     203,254        —          10,723        213,977  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥   229,172      ¥   120,331      ¥   16,288      ¥   365,791  
  

 

 

    

 

 

    

 

 

    

 

 

 

Other financial liabilities:

           

Financial liabilities measured at fair value through profit or loss:

           

Derivatives

           

Foreign exchange instruments

   ¥ —        ¥ 31,845      ¥ —        ¥ 31,845  

Interest rate instruments

     —          45,473        —          45,473  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

     —          77,318        —          77,318  
  

 

 

    

 

 

    

 

 

    

 

 

 

Total

   ¥ —        ¥ 77,318      ¥ —        ¥ 77,318  
  

 

 

    

 

 

    

 

 

    

 

 

 

There were no transfers between Level 1 and Level 2 for the six months ended September 30, 2018.


Table of Contents

 

16

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

There were no significant changes in Level 3 assets and liabilities measured at fair value on a recurring basis for the six months ended September 30, 2018.

(d) Financial Assets and Financial Liabilities measured at amortized cost

The carrying amounts and fair values of financial assets and financial liabilities measured at amortized cost as of March 31, 2018 and September 30, 2018 are as follows:

 

     Yen (millions)  
     As of March 31,
2018
     As of September 30,
2018
 
     Carrying
amount
     Fair value      Carrying
amount
     Fair value  

Receivables from financial services

   ¥ 4,958,063      ¥ 4,935,772      ¥ 5,357,427      ¥ 5,324,502  

Debt securities

     104,286        104,284        175,355        175,351  

Financing liabilities

     6,799,010        6,795,675        7,285,359        7,266,588  

The table does not include financial assets and financial liabilities measured at amortized cost whose fair values approximate their carrying amounts.


Table of Contents

 

17

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(11) Contingent Liabilities

Claims and Lawsuits

Honda is subject to potential liability under various lawsuits and claims. Honda recognizes a provision for loss contingencies 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. Honda reviews these pending lawsuits and claims periodically and adjusts the amounts recognized for these contingent liabilities, if necessary, by considering the nature of lawsuits and claims, the progress of the case and the opinions of legal counsel.

With respect to product liability, personal injury claims or lawsuits, Honda believes that any judgment that may be recovered by any plaintiff for general and special damages and court costs will be adequately covered by Honda’s insurance and provision. Punitive damages are claimed in certain of these lawsuits.

After consultation with legal counsel, and taking into account all known factors pertaining to existing lawsuits and claims, Honda believes that the ultimate outcome of such lawsuits and pending claims should not result in liability to Honda that would be likely to have an adverse material effect on its consolidated financial position or results of operations.

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.

In the United States and Canada, various class action lawsuits and civil lawsuits related to the above mentioned market-based measures was filed against Honda. The plaintiffs claimed for properly functioning airbag inflators, compensation of economic losses including incurred costs and the decline in the value of vehicles, as well as punitive damages.

Most of the class action lawsuits in the United States were transferred to the United States District Court for the Southern District of Florida and consolidated into a multidistrict class action litigation. For the three months ended September 30, 2017, Honda has reached a settlement with the plaintiffs of the multidistrict class action litigation in the United States. Honda recognized the settlement of ¥53,739 million as selling, general and administrative expenses, which includes funds contributed to enhance airbag inflator recall activities. The final approval of the settlement from court was completed as July 31, 2018(U.S. local time).

For the class action lawsuits and civil lawsuits other than the above, Honda did not recognize a provision for loss contingencies because the conditions for a provision have not been met as of the date of this report. Therefore, it is not possible for Honda to reasonably estimate the amount and timing of potential future losses as of the date of this report because there are some uncertainties, such as the period when these lawsuits will be concluded.


Table of Contents

 

18

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

(12) Earnings Per Share

Earnings per share attributable to owners of the parent for the six months ended September 30, 2017 and 2018 are calculated based on the following information. There were no dilutive potential common shares outstanding for the six months ended September 30, 2017 and 2018.

 

     2017      2018  

Profit for the period attributable to owners of the parent (millions of yen)

   ¥ 381,341      ¥ 455,101  

Weighted average number of common shares outstanding, basic (shares)

     1,802,279,583        1,767,772,938  

Basic earnings per share attributable to owners of the parent (yen)

   ¥ 211.59      ¥ 257.44  

Earnings per share attributable to owners of the parent for the three months ended September 30, 2017 and 2018 are calculated based on the following information. There were no dilutive potential common shares outstanding for the three months ended September 30, 2017 and 2018.

 

     2017      2018  

Profit for the period attributable to owners of the parent (millions of yen)

   ¥ 174,006      ¥ 210,771  

Weighted average number of common shares outstanding, basic (shares)

     1,802,279,187        1,761,356,098  

Basic earnings per share attributable to owners of the parent (yen)

   ¥ 96.55      ¥ 119.66  

(13) Dividend

(a) Dividend payout

For the six months ended September 30, 2017

 

Resolution

   The Ordinary General Meeting of Shareholders on June 15, 2017

Type of shares

   Common shares

Total amount of dividends (millions of yen)

   43,254

Dividend per share (yen)

   24.00

Record date

   March 31, 2017

Effective date

   June 16, 2017

 

Resolution

   The Board of Directors Meeting on August 1, 2017

Type of shares

   Common shares

Total amount of dividends (millions of yen)

   43,254

Dividend per share (yen)

   24.00

Record date

   June 30, 2017

Effective date

   August 25, 2017


Table of Contents

 

19

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

 

For the six months ended September 30, 2018

 

Resolution

   The Board of Directors Meeting on April 27, 2018

Type of shares

   Common shares

Total amount of dividends (millions of yen)

   48,013

Dividend per share (yen)

   27.00

Record date

   March 31, 2018

Effective date

   May 30, 2018

 

Resolution

   The Board of Directors Meeting on July 31, 2018

Type of shares

   Common shares

Total amount of dividends (millions of yen)

   47,682

Dividend per share (yen)

   27.00

Record date

   June 30, 2018

Effective date

   August 28, 2018

(b) Dividends payable of which record date was in the six months ended September 30, 2018, effective after the period

 

Resolution

   The Board of Directors Meeting on October 30, 2018

Type of shares

   Common shares

Resource for dividend

   Retained earnings

Total amount of dividends (millions of yen)

   49,287

Dividend per share (yen)

   28.00

Record date

   September 30, 2018

Effective date

   November 28, 2018

(14) Approval of Release of Condensed Consolidated Interim Financial Statements

The release of the condensed consolidated interim financial statements was approved by Takahiro Hachigo, President and Representative Director, Chief Executive Officer and Kohei Takeuchi, Senior Managing Director and Chief Financial Officer on November 5, 2018.