Honda Motor Co., Ltd. · TSE:7267
Honda Motor — Q2 2022 Earnings Presentation
32 slides from Honda Motor's earnings presentation, Nov 5, 2021
Slide 1: FY22 2nd Quarter Financial Results
FY22 2nd Quarter Financial Results November 5, 2021 1
Slide 2: Honda Automobile Unit Sales
Honda Automobile Unit Sales Unit (thousand) Results Honda FY22 FY22 Group FY21 FY22 Revised Previous Unit Sales Forecast Forecast 1Q 2Q 3Q 4Q 1Q 2Q Japan 129 143 146 174 133 115 530 630 North America 159 460 479 382 346 321 1,405 1,680 Europe 16 34 27 24 28 28 105 110 Asia 473 581 687 506 462 420 2,
Slide 3: Contents
Contents • Outline of FY22 2nd Quarter Financial Results and FY22 Financial Forecasts • FY22 2nd Quarter Financial Results and FY22 Financial Forecasts 3
Slide 4: Honda Unit Sales <FY22 Six Months>
Honda Unit Sales <FY22 Six Months> Unit (thousand) Motorcycles Automobiles Life Creation Honda Group Unit Sales FY21 FY22 Change FY21 FY22 Change FY21 FY22 Change Japan 109 126 + 17 272 248 - 24 158 184 + 26 North 141 214 + 73 619 667 + 48 1,171 1,597 + 426 America Europe 124 184 + 60 50 56 +6 346 4
Slide 5: Main Market (Automobiles) - Japan
Main Market (Automobiles) Japan Retail ■Sales Results in FY22 YTD (Apr.-Sep.) Unit vs. FY21 <Industry demand> (thousand) (%) YTD : Slightly exceeding the same period last year. Industry Demand * 2,050 101.1 QTD : Lower than the same period last year due to the significant impact of the semiconductor
Slide 6: Main Market (Automobiles) - U.S.A.
Main Market (Automobiles) ■Sales Results in FY22 U.S.A. Retail <Industry demand> YTD : Demand recovered due mainly to the Unit vs. FY21 YTD (Apr.-Sep.) economic stimulus measures, exceeding the same period (thousand) (%) last year. Industry Demand * 7,822 114.0 QTD : Lower than the same period last
Slide 7: Main Market (Automobiles) - China
Main Market (Automobiles) ■Sales Results in FY22 China Retail <Industry demand> Unit vs. FY21 Despite the demand recovery by the economic stimulus YTD (Apr.-Sep.) (thousand) (%) measures and others, lower than the same period last year due mainly to the impact of the semiconductor Industry Demand *
Slide 8: Main Market (Motorcycles)
Main Market (Motorcycles) ■Sales Results in FY22 Main Countries Wholesale <Industry demand> Demand recovered in many countries, Unit vs. FY21 exceeding the same period last year. YTD (Apr.-Sep.) (thousand) (%) <Honda> India 1,698 113.5 YTD : Exceeding the same period last year. QTD : Wholesales in V
Slide 9: Outline of FY22 Six Months Results Summary (Consolidated)
Outline of FY22 Six Months Results Summary (Consolidated) Operating profit : Despite the supply shortage of certain parts including semiconductors and the increase in raw material costs, due mainly to cost reduction efforts, the currency effects, and the increase in unit sales comparing to the same
Slide 10: FY22 Financial Forecast (Consolidated)
FY22 Financial Forecast (Consolidated) vs Previous Forecast: Operating profit : Expecting the challenging environment to continue, such as resurgence of COVID-19, the supply shortage of certain parts including semiconductors, and the increase in raw material costs. With continuing efforts to improve
Slide 11: Dividends
Dividends Change from Dividend per Share FY22 FY22 previous (Yen) Previous Expectation expectation Interim Dividend (55)* 55 - Year-end Dividend (55) (55) - Fiscal Year (110) (110) - *（ ）: Expected value 11
Slide 12: Contents
Contents • Outline of FY22 2nd Quarter Financial Results and FY22 Financial Forecasts • FY22 2nd Quarter Financial Results and FY22 Financial Forecasts 12
Slide 13: FY22 2nd Quarter Financial Results (Consolidated)
FY22 2nd Quarter Financial Results (Consolidated） Unit (thousand) QTD <Honda Group Unit Sales> Honda Group Unit Sales FY21 FY22 Change Decreased from the same period last year (Consolidated Unit Sales) Results Results Motorcycles due mainly to a decrease in unit sales in 4,467 4,294 - 3.9% Vietnam a
Slide 14: Change in Profit before Income Taxes <FY22 2nd Qtr>
Change in Profit before Income Taxes <FY22 2nd Qtr> Yen (billion) Profit before Income Taxes - 96.6 ( - 28.0 %) Operating Profit - 83.9 ( - 29.7 %) Excluding currency effects - 120.8 345.7 - 114.1 + 36.7 - 10.9 - 1.7 249.0 - 10.2 + 16.8 - 13.3 Share of profit Finance Revenue, of investments income C
Slide 15: Sales Revenue/Operating Profit (Margin) by Business Segment <FY22 2nd Qtr>
Sales Revenue/Operating Profit (Margin) by Business Segment <FY22 2nd Qtr> upper:FY22 Motorcyle Automobile Financial Services Life Creation and lower:FY21 Business Business Business Other Businesses Unit (thousand) 4,294 917 - 1,522 Honda Group (2,695) (574) - (1,522) Unit Sales 4,467 1,253 - 1,370
Slide 16: FY22 Six Months Financial Results (Consolidated)
FY22 Six Months Financial Results (Consolidated) Income Statements FY21 FY22 Change Yen (billion) Results Results amount % Sales revenue 5,775.1 6,988.2 + 1,213.0 + 21.0% Operating profit 169.2 442.1 + 272.9 + 161.2% Operating margin 2.9% 6.3% + 3.4 pt Share of profit of investments accounted for us
Slide 17: Change in Profit before Income Taxes <FY22 Six Months>
Change in Profit before Income Taxes <FY22 Six Months> Yen (billion) Profit before Income Taxes + 288.1 ( + 105.8 % ) Operating Profit + 272.9 ( + 161.2 % ) Excluding currency effects + 192.0 + 4.9 + 10.2 560.3 + 80.9 Share of profit Finance + 11.8 - 26.0 + 193.2 + 13.0 of investments income account
Slide 18: Cash Flows of Non-financial Services Businesses
Cash Flows of Non-financial Services Businesses Yen (billion) Six Months FY21 FY22 Cash flows from operating activities + 346.7 + 211.1 Cash flows from investing activities - 288.9 - 229.9 Free cash flow + 57.8 - 18.7 Cash flows from financing activities + 128.5 - 197.2 Effects of exchange rate chan
Slide 19: Forecast: Honda Unit Sales
Forecast: Honda Unit Sales Unit (thousand) Motorcycles Automobiles Life Creation Honda FY22 FY22 FY22 FY22 FY22 FY22 Group Unit Change Change Change Sales Previous Revised Previous Revised Previous Revised Japan 230 235 +5 630 530 - 100 345 335 - 10 North 420 440 + 20 1,680 1,405 - 275 3,000 2,845 -
Slide 20: FY22 Financial Forecast (Consolidated)
FY22 Financial Forecast (Consolidated) FY21 FY22 Change Change from Income Statements previous Yen (billion) Results Forecast amount % forecast Sales revenue 13,170.5 14,600.0 + 1,429.4 + 10.9% - 850.0 Operating profit 660.2 660.0 - 0.2 - 0.0% - 120.0 Operating margin 5.0% 4.5% - 0.5pt - 0.5pt Share
Slide 21: FY22 Forecast: Change in Profit before Income Taxes
FY22 Forecast: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes - 54.0 ( - 5.9 % ) Operating Profit - 0.2 ( - 0.0 % ) Excluding currency effects - 131.2 + 34.8 + 2.0 - 102.0 914.0 Cost reduction, + 131.0 - 72.7 Revenue, etc. model mix, + 18.8 860.0 etc. - 66.0 SG&A Share
Slide 22: FY22 Forecast: Change in Profit before Income Taxes
FY22 Forecast: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes - 140.0 ( - 14.0 % ) Operating Profit - 120.0 ( - 15.4 % ) Excluding currency effects - 168.0 1,000.0 - 281.0 + 48.0 - 20.0 - 860.0 + 88.0 + 13.0 Share of profit Finance + 12.0 R&D Currency of investments in
Slide 23: FY22 Forecast: Capital Expenditures, Depreciation and R&D
FY22 Forecast: Capital Expenditures, Depreciation and R&D No changes have been made from the previous forecasts Change from FY21 FY22 Change previous Yen (billion) Results Forecast forecast Capital expenditures *1 321.2 320.0 - 1.2 - Depreciation and amortization *1 365.8 370.0 + 4.1 - Research and
Slide 24: Caution with Respect to Forward-Looking Statements
Caution with Respect to Forward-Looking Statements: This slide contains forward-looking statements about the performance of Honda, which are b ased on management’s assumptions and beliefs taking into account information currently availab le to it. Therefore, please b e advised that Honda’s actual re
Slide 25: HONDA The Power of Dreams
HONDA The Power of Dreams
Slide 26: Appendix
Appendix 26
Slide 27: Change in Sales Revenue (Sales revenue from external customers)
Change in Sales Revenue (Sales revenue from external customers) Yen (billion) Three Months compared with FY21 2Q : - 247.0 / - 6.8 % (Exc. currency translation effects:- 365.9 / - 10.0 %) Change FY21 FY22 Change excluding currency translation effects （％） Motorcycle Business 493.0 505.5 + 12.4 - 2.5
Slide 28: Sales Revenue/Operating Profit (Margin) by Business Segment <FY22 Six Months>
Sales Revenue/Operating Profit (Margin) by Business Segment <FY22 Six Months> upper:FY22 Motorcyle Automobile Financial Services Life Creation and lower:FY21 Business Business Business Other Businesses Unit (thousand) 8,173 1,915 - 3,230 Honda Group (5,087) (1,182) - (3,230) Unit Sales (Consolidated
Slide 29: Sales Revenue / Operating Profit by Geographical Segment
Sales Revenue / Operating Profit by Geographical Segment Yen (billion) Japan North America Europe Asia Other Regions Three Months FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 FY21 FY22 Sales 904.2 1,023.1 2,162.5 1,960.5 194.3 174.0 891.4 883.5 121.3 148.9 Revenue Operating - 13.1 13.3 197.2 126.0 6.3 2.
Slide 30: Capital Expenditures, Depreciation and R&D <FY22 2nd Qtr>
Capital Expenditures, Depreciation and R&D <FY22 2nd Qtr> QTD YTD FY21 FY22 FY21 FY22 Change Change Yen (billion) Results Results Results Results Capital expenditures 72.1 69.8 - 2.3 120.1 126.9 + 6.8 Depreciation and 89.9 99.9 + 9.9 180.5 193.7 + 13.1 amortization Research and development 181.1 185
Slide 31: Sales Revenue/Operating Profit by Business Segment
Sales Revenue/Operating Profit by Business Segment Yen (billion) QTD YTD FY21 FY22 Change Change FY21 FY22 Change Segment Information 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (%) Change Results Results (%) Sales Revenue Motorcycle Business 274.2 493.0 490.8 529.1 518.2 505.5 + 12.4 + 2.5% 767.3 1,023.7 + 256.4 + 33.
Slide 32: Honda Group Unit Sales/Consolidated Unit Sales
Honda Group Unit Sales/Consolidated Unit Sales Unit (thousand) QTD YTD Forecast Honda FY21 FY22 Group FY21 FY22 FY21 FY22 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Change Change Change Unit Sales Results Results Results Forecast Motorcycles 1,855 4,467 4,269 4,541 3,879 4,294 - 173 6,322 8,173 + 1,851 15,132 17,500 +