Honda Motor Co., Ltd. · TSE:7267
Honda Motor — FY2021 Earnings Presentation
30 slides from Honda Motor's earnings presentation, May 14, 2021
Slide 1: FY21 Financial Results
FY21 Financial Results Honda Motor Co., Ltd. May 14, 2021 1
Slide 2: Contents
Contents • Outline of FY21 Financial Results and FY22 Financial Forecasts • FY21 Financial Results and FY22 Financial Forecasts 2
Slide 3: Honda Unit Sales FY21 Twelve Months
Honda Unit Sales <FY21 Twelve Months> Unit (thousand) Motorcycles Automobiles Life Creation Honda Group Unit FY20 FY21 Change FY20 FY21 Change FY20 FY21 Change Sales Japan 205 215 + 10 672 592 - 80 312 336 + 24 North 330 332 +2 1,825 1,480 - 345 2,848 2,617 - 231 America Europe 239 234 -5 133 101 -
Slide 4: Main Market (Automobiles) - Japan
Main Market (Automobiles) ■Sales Results in FY21 Japan Retail <Industry demand> Unit vs. FY20 Lower than last year due mainly to the impact of Twelve Months Results (thousand) (%) COVID-19. Industry Demand 4,657 92.4 <Honda> Unit Sales 614 89.1 Decreased compared with last year despite of the strong
Slide 5: Main Market (Automobiles) - U.S.A.
Main Market (Automobiles) ■Sales Results in FY21 U.S.A. Retail <Industry demand> Unit vs. FY20 Lower than last year despite of the gradual recovery of Twelve Months Results (thousand) (%) economic activities since May. Industry Demand 14,980 90.5 <Honda> Unit Sales 1,395 90.8 Maintain equivalent rec
Slide 6: Main Market (Automobiles) - China
Main Market (Automobiles) ■Sales Results in FY21 China Retail <Industry demand> Unit vs. FY20 Exceeded last year due mainly to the effect of various Twelve Months Results (thousand) (%) consumption stimulus measures taken by the government. Industry Demand * 28,084 121.8 <Honda> Unit Sales 1,795 124
Slide 7: Main Market (Motorcycles)
Main Market (Motorcycles) ■Sales Results in FY21 Asia Wholesale <Industry demand> Unit vs. FY20 Lower than last year. Twelve Months Results (thousand) (%) Recovering in countries like China and the United States. Asia, the largest market, has been recovering moderately. India 3,866 82.2 Vietnam 2,10
Slide 8: Outline of FY21 Financial Results Summary (Consolidated)
Outline of FY21 Financial Results Summary (Consolidated) Despite the demand decline caused by COVID-19 and impact of the semiconductor Operating supply shortage, improvement in SG&A efficiency and cost reduction efforts caused profit ： by continuous review of the business operation as well as differ
Slide 9: FY22 Financial Forecast (Consolidated)
FY22 Financial Forecast (Consolidated) Operating profit : Despite the impact of the increase in raw material cost, concerns about the semiconductor shortage, and difference in the amount of the provision for credit losses in previous fiscal year, by increasing the unit sales and solidifying the exis
Slide 10: Dividend
Dividend Dividend per Share (Yen） FY21 FY20 FY21 FY22 (Previous (Expectation) forecast) 1st Quarter End 28 11 11 (55) Interim Dividend 2nd Quarter End 28 19 19 3rd Quarter End 28 26 26 (55) Year-end Dividend 4th Quarter End 28 26 54 Fiscal Year 112 82 110 (110) Fiscal Year <Change of the Dividend Po
Slide 11: Contents
Contents • Outline of FY21 Financial Results and FY22 Financial Forecasts • FY21 Financial Results and FY22 Financial Forecasts 11
Slide 12: FY21 4th Quarter Financial Results (Consolidated)
FY21 4th Quarter Financial Results (Consolidated） Unit (thousand) <Honda Group Unit Sales> Honda Group QTD Unit Sales FY20 FY21 Change Increased unit sales in India, Pakistan, and (Consolidated Unit Sales) Results Results Motorcycles China while decreased in Indonesia. 4,302 4,541 + 5.6% Motorcycles
Slide 13: Change in Profit before Income Taxes FY21 4th Qtr
Change in Profit before Income Taxes <FY21 4th Qtr> Yen (billion) Profit before Income Taxes + 251.5 Operating Profit + 218.8 Excluding currency effects + 218.8 + 53.6 - 20.9 255.3 + 146.4 - 14.8 Finance - 0.0 income R&D Currency Share of profit and effects of investments Finance accounted costs for
Slide 14: Sales Revenue/Operating Profit by Business Segment FY21 4th Qtr
Sales Revenue/Operating Profit (Margin) by Business Segment <FY21 4th Qtr> upper：FY21 Motorcyle Automobile Financial Services Life Creation and lower：FY20 Business Business Business Other Businesses Unit (thousand) 4,541 1,121 - 1,768 Honda Group (3,001) (718) - (1,768) Unit Sales 4,302 981 - 2,071
Slide 15: FY21 Financial Results (Consolidated)
FY21 Financial Results (Consolidated) Income Statements FY20 FY21 Change Yen (billion) Results Results amount % Sales revenue 14,931.0 13,170.5 - 1,760.4 - 11.8% Operating profit 633.6 660.2 + 26.5 + 4.2% Operating margin 4.2% 5.0% + 0.8pt Share of profit of investments accounted for using the equit
Slide 16: Change in Profit before Income Taxes FY21 Twelve Months
Change in Profit before Income Taxes <FY21 Twelve Months> Yen (billion) Profit before Income Taxes + 124.1 ( + 15.7 % ) Operating Profit + 26.5 ( + 4.2 % ) Excluding currency effects + 73.6 + 108.5 - 10.9 914.0 + 61.2 - 47.1 789.9 - 395.1 + 275.0 Finance income R&D Currency Share of profit and effec
Slide 17: Cash Flows of Non-financial Services Businesses
Cash Flows of Non-financial Services Businesses Yen (billion) FY20 FY21 Twelve Months Cash flows from operating activities + 1,055.0 + 1,050.9 Cash flows from investing activities - 584.3 - 747.1 Free cash flow + 470.6 + 303.8 Cash flows from financing activities - 302.5 - 328.1 Effects of exchange
Slide 18: Forecast: Honda Unit Sales
Forecast: Honda Unit Sales Unit (thousand) Motorcycles Automobiles Life Creation Honda FY21 FY22 FY21 FY22 FY21 FY22 Group Unit Change Change Change Sales Results Forecast Results Forecast Results Forecast Japan 215 225 + 10 592 645 + 53 336 335 -1 North 332 405 + 73 1,480 1,700 + 220 2,617 2,840 +
Slide 19: FY22 Financial Forecast (Consolidated)
FY22 Financial Forecast (Consolidated) FY21 FY22 Change Income Statements Yen (billion) Results Forecast amount % Sales revenue 13,170.5 15,200.0 + 2,029.4 + 15.4% Operating profit 660.2 660.0 - 0.2 - 0.0% Operating margin 5.0% 4.3% - 0.7pt Share of profit of investments accounted for using the equi
Slide 20: FY22 Forecast: Change in Profit before Income Taxes
FY22 Forecast: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes - 44.0 ( - 4.8 % ) Operating Profit - 0.2 ( - 0.0 % ) Excluding currency effects - 35.2 + 332.8 - 51.0 - 226.0 Cost reduction, 914.0 etc. - 91.0 + 35.0 - 52.7 870.0 SG&A + 8.8 Revenue, R&D Currency Share of
Slide 21: FY22 Forecast: Capital Expenditures, Depreciation and R&D
FY22 Forecast: Capital Expenditures, Depreciation and R&D FY21 FY22 Change Yen (billion) Results Forecast Capital expenditures *1 321.2 320.0 - 1.2 Depreciation and amortization *1 365.8 370.0 + 4.1 Research and development expenditures *2 780.0 840.0 + 59.9 *1 Capital expenditures as well as Deprec
Slide 22: 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 based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that Honda’s actual resul
Slide 23: HONDA The Power of Dreams
HONDA The Power of Dreams
Slide 24: Appendix
Appendix 24
Slide 25: Change in Sales Revenue (Sales revenue from external customers)
Change in Sales Revenue (Sales revenue from external customers) Yen (billion) Three Months compared with FY20 4Q : + 165.7 / + 4.8 % (Exc. currency translation effects：+ 228.3 / + 6.6 %) Change FY20 FY21 Change excluding currency translation effects （％） Motorcycle Business 473.5 529.1 + 55.5 + 70.8
Slide 26: Sales Revenue/Operating Profit by Business Segment FY21 Twelve Months
Sales Revenue/Operating Profit (Margin) by Business Segment <FY21 Twelve Months> upper：FY21 Motorcyle Automobile Financial Services Life Creation and lower：FY20 Business Business Business Other Businesses Unit (thousand) 15,132 4,546 - 5,623 Honda Group (10,264) (2,617) - (5,623) Unit Sales (Consoli
Slide 27: 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 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 FY20 FY21 Sales 1,084.6 1,118.1 2,012.1 2,009.9 189.5 209.1 826.1 1,004.3 148.4 119.1 Revenue Operating - 66.2 - 44.5 24.5 186.6 3
Slide 28: Capital Expenditures, Depreciation and R&D FY21 4th Qtr
Capital Expenditures, Depreciation and R&D <FY21 4th Qtr> QTD YTD FY20 FY21 FY20 FY21 Change Change Yen (billion) Results Results Results Results Capital expenditures 146.6 108.7 - 37.9 375.6 321.2 - 54.3 Depreciation and 96.2 93.1 - 3.1 396.9 365.8 - 31.0 amortization Research and development 240.8
Slide 29: Sales Revenue/Operating Profit by Business Segment
Sales Revenue/Operating Profit by Business Segment Yen (billion) QTD YTD FY20 FY21 Change Change FY20 FY21 Change Segment Information 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (%) Change Results Results (%) Sales Revenue Motorcycle Business 533.0 522.5 530.2 473.5 274.2 493.0 490.8 529.1 + 55.5 + 11.7% 2,059.3 1,787.
Slide 30: Honda Group Unit Sales/Consolidated Unit Sales
Honda Group Unit Sales/Consolidated Unit Sales Unit (thousand) QTD YTD Forecast FY20 FY21 Honda Group FY20 FY21 FY21 FY22 Unit Sales 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Change Change Change Results Results Results Forecast Motorcycles 4,921 5,098 5,019 4,302 1,855 4,467 4,269 4,541 + 239 19,340 15,132 - 4,208 1