Honda Motor Co., Ltd. · TSE:7267
Honda Motor — Q3 2024 Earnings Presentation
30 slides from Honda Motor's earnings presentation, Feb 8, 2024
Slide 1: FY24 3rd Quarter Financial Results
FY24 3rd Quarter Financial Results February 8, 2024 1
Slide 2: Contents
Contents FY24 3rd Quarter Financial Results and FY24 Financial Forecast • Summary • Details 2
Slide 3: Summary
Summary ■ FY24 Nine Months Results (Apr. – Dec.) Yen (billion) ⚫ Operating Profit 1,076.3 billion yen Motorcycles Automobiles Operating Margin 7.2% 460.5 411.5 -Motorcycles: An increase in unit sales mainly in Brazil and Europe. 376.5 (4.6%) (17.5%) Marked record highs for operating profit and (17.1
Slide 4: Main Market (Automobile Business)
Main Market (Automobile Business) Main Countries Retail ◼ Sales Results in FY24 (3Q) • Overall, exceeded the same period last year mainly due to stable Unit vs. FY23 YTD（ Apr. - Dec. ） demand in the United States and recovery in production in Japan. （thousand） （％） Japan 427 108.6 ◼ Outlook/Forecast
Slide 5: Main Market (Motorcycle Business)
Main Market (Motorcycle Business) Main Countries Wholesale ◼ Sales Results in FY24 (3Q) YTD: Despite a decrease in Vietnam related to an economic slowdown, Unit vs. FY23 stayed almost the same level as the same period last year YTD（ Apr. - Dec. ） (thousand) （％） mainly due to firm demand in Indonesia
Slide 6: Summary of FY24 3rd Qtr. Results (Nine Months)
Summary of FY24 3rd Qtr. Results (Nine Months) Operating Despite a negative impact from warranty expenses, profit : operating profit increased by 342.4 billion yen to 1,076.3 billion yen. This was primarily due to an increase in unit sales of automobiles and pricing that reflects increased products
Slide 7: FY24 Financial Forecast
FY24 Financial Forecast vs Previous Forecast: Operating Despite challenging environment in Asia as well as an increase profit : in warranty expenses, reflects further strengthening measures to improve profitability and the positive impacts from currency effects, operating profit is revised upward by
Slide 8: Dividends
Dividends Dividend per Share (Yen) FY24 FY24 Change from (pre-stock split) Previous Forecast previous *1 Interim Dividend 87 87 - 29 29 Year-end Dividend - (87) (87) - - *2 Fiscal Year - (174) (174) *1 The company implemented the stock split into 3 shares per share with the effective date of October
Slide 9: Acquisition and Cancellation of the Company's Own Shares
Acquisition and Cancellation of the Company’s Own Shares ＜Purpose for acquisition and cancellation of own shares＞ Improving efficiency of its capital structure and implementing a flexible capital strategy, among others. ＜Acquisition of the Company’s Own Shares＞ Details: - Total number of shares to b
Slide 10: Contents
Contents FY24 3rd Quarter Financial Results and FY24 Financial Forecast • Summary • Details 10
Slide 11: FY24 3rd Qtr. Results: Honda Unit Sales (Nine Months)
FY24 3rd Qtr. Results: Honda Unit Sales (Nine Months) Unit (thousand) Motorcycles Automobiles Power Products YTD (Nine Months) YTD (Nine Months) YTD (Nine Months) Honda Group Unit Sales FY23 FY24 Change FY23 FY24 Change FY23 FY24 Change Japan 179 181 +2 389 428 + 39 267 204 - 63 North 339 374 + 35 8
Slide 12: Change in Profit before Income Taxes (Nine Months)
FY24 3rd Qtr. Results: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes + 405.1 ( + 47.1 % ) Operating Profit + 342.4 ( + 46.7 % ) + 359.8 - 366.6 + 144.3 1,264.5 + 95.4 - 81.6 + 282.4 - 28.5 Price/Cost Expenses Profit of Other 859.3 impacts *2 R&D Currency effects *3 eq
Slide 13: Sales Revenue/Operating Profit by Business Segment (Nine Months)
FY24 3rd Qtr. Results: Sales Revenue/Operating Profit (Margin) by Business Segment (Nine Months) upper：FY24 Motorcyle Automobile Financial Services Power Products and lower：FY23 Business Business Business Other Businesses Unit (thousand) 13,961 3,114 - 2,548 Honda Group (9,103) (2,099) - (2,548) Uni
Slide 14: Cash Flows of Non-Financial Services Businesses
Cash Flows of Non-Financial Services Businesses Yen (billion) FY23 FY24 Nine Months Cash flows from operating activities + 807.8 + 1,429.6 Cash flows from investing activities - 590.7 - 503.0 Free cash flow + 217.0 + 926.5 Cash flows from financing activities - 378.0 - 540.4 Effects of exchange rate
Slide 15: Forecast: Honda Unit Sales
Forecast: Honda Unit Sales Unit (thousand) Motorcycles Automobiles Power Products Honda Group FY24 FY24 FY24 FY24 FY24 FY24 Unit Sales Change Change Change Previous Revised Previous Revised Previous Revised Japan 255 245 - 10 630 630 - 320 300 - 20 North 500 505 +5 1,620 1,620 - 1,075 1,130 + 55 Ame
Slide 16: FY24 Forecast: Change in Profit before Income Taxes
FY24 Forecast: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes + 565.4 ( + 64.3 % ) Operating Profit + 469.2 ( + 60.1 % ) + 434.0 - 353.4 + 138.6 1,445.0 - 51.0 + 79.0 - 42.4 + 360.6 Profit of Other Expenses *2 R&D Currency Price/Cost equity method effects impacts *3 87
Slide 17: FY24 Forecast: Change in Profit before Income Taxes vs Previous Forecast
FY24 Forecast: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes + 50.0 ( + 3.6 % ) Operating Profit + 50.0 ( + 4.2 % ) 1,395.0 - 11.0 + 40.0 - 32.0 + 53.0 - - 1,445.0 - Profit of Other Sales Price/Cost Expenses R&D Currency equity method impacts impacts *2 effects *1 *3
Slide 18: FY24 Forecast: Capital Expenditures/Depreciation/R&D
FY24 Forecast: Capital Expenditures/Depreciation/R&D FY23 FY24 Change from Change previous forecast Yen (billion) Results Forecast Capital expenditures *1 493.9 440.0 - 53.9 - Depreciation and amortization *1 439.3 480.0 + 40.6 - Research and development expenditures *2 852.0 990.0 + 137.9 - *1 Capi
Slide 19: Caution with Respect to Forward-Looking Statements
Caution with Respect to Forward-Looking Statements: This presentation contains forward-looking statements about the performance and shareholders return of Honda, which are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be ad
Slide 20: HONDA | How we move you.
HONDA | Howwe move you. The Power of Dreams CREATE » TRANSCEND, AUGMENT
Slide 21: Appendix
Appendix
Slide 22: Change in Profit before Income Taxes (Three Months)
FY24 3rd Qtr. Results: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes + 41.6 ( + 12.1 % ) Operating Profit + 99.3 ( + 35.4 % ) + 154.0 - 152.3 + 32.9 - 65.3 + 63.1 + 1.4 385.2 + 7.7 343.5 Price/Cost Expenses R&D Currency effects impacts *2 Profit of Other *3 equity met
Slide 23: Sales Revenue/Operating Profit by Business Segment (Three Months)
FY24 3rd Qtr. Results: Sales Revenue/Operating Profit (Margin) by Business Segment (Three Months) upper：FY24 Motorcyle Automobile Financial Services Power Products and Motorcycles lower：FY23 Business Business Business Other Businesses Unit (thousand) 4,695 1,180 - 722 Honda Group (3,097) (767) - (72
Slide 24: Change in Sales Revenue
Change in Sales Revenue (sales revenue from external customers） Yen (billion) Three Months Compared with FY23 3Q : + 951.9 / + 21.4 % (Excluding currency translation effects：+ 773.9 / + 17.4 %) Change FY23 FY24 Change excluding currency translation effects （％） Motorcycle Business 789.6 785.4 - 4.1 -
Slide 25: Changes in Operating Profit in Motorcycle/Automobile Business (Nine Months)
FY24 3rd Qtr. Results: Changes in Operating Profit in Motorcycle Business/Automobile Business (Nine Months) Yen (billion) Motorcycle Operating Profit + 34.9 ( + 9.3 % ) Business + 102.6 - 80.3 376.5 + 12.0 - 5.0 + 5.7 411.5 Price/Cost Expenses R&D Currency Sales impacts *2 effects impacts *1 Operati
Slide 26: Sales Revenue/Operating Profit by Geographical Segment
FY24 3rd Qtr.: Sales Revenue/Operating Profit by Geographical Segment Yen (billion) Japan North America Europe Asia Other Regions Three Months FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Sales Revenue 1,235.6 1,590.3 2,494.9 3,184.0 163.8 211.5 1,282.1 1,373.6 211.1 270.9 Operating 36.8 155.7
Slide 27: Capital Expenditures/Depreciation/R&D
FY24 3rd Qtr. Results: Capital Expenditures/Depreciation/R&D QTD (Three Months) YTD (Nine Months) FY23 FY24 FY23 FY24 Change Change Yen (billion) Results Results Results Results Capital expenditures 156.7 85.1 - 71.6 398.8 220.3 - 178.4 Depreciation and 112.2 118.6 + 6.3 319.6 364.9 + 45.2 amortizat
Slide 28: Consolidated Statements of Financial Position
FY24 3rd Qtr.: Consolidated Statements of Financial Position Divided into Non-financial Services Businesses and Finance Subsidiaries Yen (billion) Assets Mar. 31, 2023 Dec. 31, 2023 Liabilities and Equity Mar. 31, 2023 Dec. 31, 2023 Cash and cash equivalents 3,553.6 4,060.2 Trade payables 1,379.3 1,
Slide 29: Sales Revenue/Operating Profit by Business Segment
Sales Revenue/Operating Profit by Business Segment Yen (billion) QTD YTD FY23 FY24 Change Change FY23 FY24 Change Segment Information 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (%) Change Results Results (%) Sales Revenue Motorcycle Business 676.0 736.6 789.6 706.6 756.9 815.6 785.4 - 4.1 - 0.5% 2,202.3 2,358.0 + 155.
Slide 30: Honda Group Unit Sales/Consolidated Unit Sales
Honda Group Unit Sales/Consolidated Unit Sales Unit (thousand) QTD YTD Forecast FY23 FY24 Honda Group FY23 FY24 FY23 FY24 Unit Sales 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Change Change Change Results Results Results Forecast Motorcycles 4,251 4,951 5,083 4,472 4,473 4,793 4,695 - 388 14,285 13,961 - 324 18,757 18