Honda Motor Co., Ltd. · TSE:7267
Honda Motor — Q3 2020 Earnings Presentation
31 slides from Honda Motor's earnings presentation, Nov 6, 2020
Slide 1: FY20 3rd Quarter Financial Results
FY20 3rd Quarter Financial Results FIT CROSSTAR (Japan) Honda Motor Co., Ltd. February 7, 2020 1
Slide 2: Contents
Contents • Outline of FY20 3rd Quarter Financial Results and FY20 Financial Forecasts • FY20 3rd Quarter Financial Results and FY20 Financial Forecasts 2
Slide 3: Honda Group Unit Sales <FY20 Nine Months>
Honda Group Unit Sales <FY20 Nine Months> Unit (thousand) Motorcycles Automobiles Life Creation FY19 FY20 Change FY19 FY20 Change FY19 FY20 Change Japan 157 154 -3 515 489 - 26 246 218 - 28 North 216 221 +5 1,444 1,402 - 42 1,781 1,661 - 120 America Europe 181 186 +5 121 103 - 18 600 502 - 98 * Asia
Slide 4: Main Market (Automobiles): Japan Retail
Main Market (Automobiles) ■ Sales Results in FY20 (Nine Months) Japan Retail <Industry demand> Unit vs. FY19 Decreased compared with the same period last year due Nine Months Results (thousand) (%) mainly to the impact of the consumption tax rate hike, despite the launch of new models of each compan
Slide 5: Main Market (Automobiles): U.S. Retail
Main Market (Automobiles) ■ Sales Results in FY20 (Nine Months) U.S. Retail <Industry demand> Down slightly compared with the same period Unit vs. FY19 Nine Months Results last year. An increase in the light truck market and (thousand) (%) a decline in the sedan market. Industry Demand 13,041 99.1 <
Slide 6: Main Market (Automobiles): China Retail
Main Market (Automobiles) ■ Sales Results in FY20 (Nine Months) China Retail <Industry demand> Unit vs. FY19 Decreased compared with the same period last Nine Months Results year due to a volume decline in all vehicle segments. (thousand) (%) Industry Demand * 19,386 93.0 <Honda> Exceeded sales of t
Slide 7: Main Market (Motorcycles)
Main Market (Motorcycles) ■ Sales Results in FY20 (Nine Months, Asia) Asia Wholesale <Industry demand> Asia overall market slowed down compared with the same Unit vs. FY19 Nine Months Results period last year. In India, the largest market, consumer (thousand) (%) spending remains sluggish due to sta
Slide 8: Outline of FY20 Nine Months Results Summary (Consolidated)
Outline of FY20 Nine Months Results Summary (Consolidated) Operating profit : Decreased 44.7 billion yen compared with the same period last year. Excluding currency effects and one-time issues, Increased 68.2 billion yen due mainly to continuing cost reduction and decreased selling, general and admi
Slide 9: FY20 Financial Forecast (Consolidated)
FY20 Financial Forecast (Consolidated) Operating profit : Despite the currency effects, the worsening economy in India and a decrease in sales in Japan due to the effects of parts supply restrictions, Plan to exceed the previous year’s profit, by steadily implement initiatives to improve profitabili
Slide 10: Dividend
Dividend Increase / Change from Dividend per Share FY19 FY20 Decrease previous (Expectation) from FY19 forecast （Yen） st 1 Quarter End 27 28 +1 - 2 nd Quarter End 28 28 - - 3 rd Quarter End 28 28 - - th 4 Quarter End 28 (28) (-) (-) Fiscal Year 111 (112) (+ 1) (-) 10
Slide 11: Contents
Contents • Outline of FY20 3rd Quarter Financial Results and FY20 Financial Forecasts • FY20 3rd Quarter Financial Results and FY20 Financial Forecasts 11
Slide 12: FY20 3rd Quarter Financial Results (Consolidated)
FY20 3rd Quarter Financial Results (Consolidated) QTD Honda Group Increased sales units in China, Thailand and Motorcycles Unit Sales FY19 FY20 Change Brazil, although decreased unit sales in India. (thousand) Motorcycles 5,013 5,019 + 0.1% Decreased sales units in Japan, the United Automobiles Auto
Slide 13: Change in Profit before Income Taxes <FY20 3rd Qtr>
Change in Profit before Income Taxes <FY20 3rd Qtr> Yen (billion) Profit before Income Taxes - 20.1 ( - 8.9 % ) Operating Profit - 3.4 ( - 2.1 % ) Excluding currency effects + 36.5 + 55.3 - 35.2 - 40.0 + 46.5 226.9 - 30.1 R&D - 9.8 SG&A Currency - 6.8 206.7 effects Share of profit Finance Revenue, C
Slide 14: Sales Revenue/Operating Profit by Business Segment <FY20 3rd Qtr>
Sales Revenue/Operating Profit (Margin) by Business Segment <FY20 3rd Qtr> upper︓FY20 Motorcyle Automobile Financial Services Life Creation and lower︓FY19 Business Business Business Other Businesses Unit (thousand) 5,019 1,247 - 1,195 Honda Group Unit Sales 5,013 1,408 - 1,351 Yen (billion) 530.2 2,
Slide 15: FY20 Nine Months Financial Results (Consolidated)
FY20 Nine Months Financial Results (Consolidated) Financial Results FY19 FY20 Change Yen (billion) Results Results amount % Sales revenue 11,839.5 11,472.9 - 366.5 - 3.1% Operating profit 684.0 639.2 - 44.7 - 6.5% Operating margin 5.8% 5.6% - 0.2pt Share of profit of investments accounted for using
Slide 16: Change in Profit before Income Taxes <FY20 Nine Months>
Change in Profit before Income Taxes <FY20 Nine Months> Yen（billion） Profit before Income Taxes - 82.0 ( - 9.5 % ) Operating Profit - 44.7 ( - 6.5 % ) Excluding currency effects + 46.0 + 62.6 - 7.5 - 90.7 868.2 - 100.7 + 91.6 R&D - 19.9 - 17.4 786.1 SG&A Currency effects Share of profit Finance Reve
Slide 17: Forecast: Honda Group Unit Sales
Forecast: Honda Group Unit Sales Unit (thousand) Motorcycles Automobiles Life Creation FY20 FY20 FY20 FY20 FY20 FY20 Change Change Change Previous Revised Previous Revised Previous Revised Japan 205 205 - 645 655 + 10 295 300 +5 North 315 315 - 1,865 1,865 - 3,095 2,970 - 125 America Europe 245 250
Slide 18: FY20 Financial Forecast (Consolidated)
FY20 Financial Forecast (Consolidated) FY19 FY20 Change Change from Financial Results previous Yen (billion) Results Forecast amount % forecast Sales revenue 15,888.6 15,150.0 - 738.6 - 4.6% + 100.0 Operating profit 726.3 730.0 + 3.6 + 0.5% + 40.0 Operating margin 4.6% 4.8% + 0.2pt + 0.2pt Share of
Slide 19: FY20 Forecast: Change in Operating Profit
FY20 Forecast: Change in Operating Profit Yen (billion) Operating Profit + 3.6 ( + 0.5 % ) + 118.0 - 16.0 - 123.0 726.3 - 140.0 + 134.0 R&D + 30.6 730.0 SG&A Currency Global effects automobile Revenue, Cost production model mix, reduction, changes etc. etc. - JPY / USD - 25.5 - USD / Others - 8.5 (B
Slide 20: FY20 Forecast: Change in Operating Profit
FY20 Forecast: Change in Operating Profit Yen (billion) Operating Profit + 40.0 ( + 5.8 % ) - + 40.0 - 9.0 + 15.0 - 730.0 690.0 - 6.0 R&D Currency Revenue, Cost SG&A Global effects model mix, reduction, automobile etc. etc. production changes - JPY / USD + 8.5 - USD / Others + 1.5 (BRL, CAD, MXN) -
Slide 21: FY20 Forecast: Capital Expenditures, Depreciation and R&D
FY20 Forecast: Capital Expenditures, Depreciation and R&D FY19 FY20 Change from Change Yen (billion) Results Forecast previous forecast Capital expenditures *1 426.5 400.0 - 26.5 - 40.0 Depreciation and amortization *1 450.3 400.0 - 50.3 - Research and development expenditures *2 820.0 860.0 + 39.9
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
HON DA The Power of Dreams
Slide 24: Appendix
Appendix
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 FY19 3Q : - 226.0 / - 5.7 % (Excluding currency translation effects︓- 101.6 / - 2.6 %) Change FY19 FY20 Change excluding currency translation effects (%) Motorcycle Business 516.5 530.2 + 13.7 +
Slide 26: Sales Revenue/Operating Profit by Business Segment <FY20 Nine Months>
Sales Revenue/Operating Profit (Margin) by Business Segment <FY20 Nine Months> upper︓FY20 Motorcyle Automobile Financial Services Life Creation and lower︓FY19 Business Business Business Other Businesses Unit (thousand) 15,038 3,809 - 3,630 Honda Group Unit Sales 15,680 3,959 - 3,954 Yen (billion) 1,
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 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 Sales 1,296.1 1,044.9 2,250.2 2,162.8 218.8 190.3 1,065.7 1,016.5 194.7 181.8 Revenue Operating 43.3 - 43.1 49.9 101.7 1
Slide 28: Capital Expenditures, Depreciation and R&D <FY20 3rd Qtr>
Capital Expenditures, Depreciation and R&D <FY20 3rd Qtr> QTD YTD FY19 FY20 FY19 FY20 Change Change Results Results Results Results Yen (billion) Capital expenditures 105.8 93.6 - 12.1 282.3 228.9 - 53.3 Depreciation and amortization 107.6 96.8 - 10.8 339.4 300.6 - 38.7 Research and development expe
Slide 29: Cash Flows of Non-financial Services Businesses
Cash Flows of Non-financial Services Businesses Yen (billion) FY19 FY20 Nine Months Cash flows from + 692.5 + 698.8 operating activities Cash flows from - 447.8 - 399.8 investing activities Free cash flow + 244.6 + 299.0 Cash flows from - 312.9 - 335.4 financing activities Effect of exchange - 11.2 -
Slide 30: Sales Revenue/Operating Profit by Business Segment
Sales Revenue/Operating Profit by Business Segment Yen (billion) QTD YTD(9 months) FY19 FY20 Change Change FY19 FY20 Change Segment Information 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q (%) Change Results Results (%) Sales Revenue Motorcycle Business 554.9 539.3 516.5 489.4 533.0 522.5 530.2 + 13.7 + 2.7% 1,610.7 1,5
Slide 31: Honda Group Unit Sales/Consolidated Unit Sales
Honda Group Unit Sales/Consolidated Unit Sales Unit (thousand) QTD YTD Forecast Honda FY19 FY20 Group FY19 FY20 FY19 FY20 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Change Change Change Unit Sales Results Results Results Forecast Motorcycles 5,352 5,315 5,013 4,558 4,921 5,098 5,019 + 6 15,680 15,038 - 642 20,238 19,9