Honda Motor Co., Ltd. · TSE:7267
Honda Motor — Q3 2021 Earnings Presentation
31 slides from Honda Motor's earnings presentation, Feb 9, 2021
Slide 1: FY21 3rd Quarter Financial Results
FY21 3rd Quarter Financial Results Honda Motor Co., Ltd. February 9, 2021 1
Slide 2: Contents
Contents • Outline of FY21 3rd Quarter Financial Results and FY21 Financial Forecasts • FY21 3rd Quarter Financial Results and FY21 Financial Forecasts 2
Slide 3: Honda Unit Sales <FY21 Nine Months>
Honda Unit Sales <FY21 Nine Months> Unit (thousand) Motorcycles Automobiles Life Creation Honda Group Unit FY20 FY21 Change FY20 FY21 Change FY20 FY21 Change Sales Japan 154 155 + 1 489 418 - 71 218 233 + 15 North 221 240 + 19 1,402 1,098 - 304 1,661 1,815 + 154 America Europe 186 159 - 27 103 77 -
Slide 4: Main Market (Automobiles) - Japan
Main Market (Automobiles) ■Sales Results in FY21 (Nine Months) Japan Retail <Industry demand> Unit vs. FY20 Lower than the same period last year. Nine Months Results (thousand) (%) Exceeded the same period last year since October due mainly to the consumption tax hike in last year. Industry Demand 3
Slide 5: Main Market (Automobiles) - U.S.A.
Main Market (Automobiles) U.S.A. Retail ■Sales Results in FY21 (Nine Months) Unit vs. FY20 <Industry demand> Nine Months Results (thousand) (%) Lower than the same period last year despite of Industry Demand 11,066 84.9 gradual recovery of economic activities since May. Retail for Q3 (YoY rate): 97.
Slide 6: Main Market (Automobiles) - China
Main Market (Automobiles) ■Sales Results in FY21 (Nine Months) China Retail <Industry demand> Unit vs. FY20 Exceeded the same period last year because of the Nine Months Results (thousand) (%) effect of various consumption stimulation measures. Industry Demand * 21,620 111.5 <Honda> Unit Sales 1,405
Slide 7: Main Market (Motorcycles)
Main Market (Motorcycles) ■Sales Results in FY21 (Nine Months) Asia Wholesale <Industry demand> Unit vs. FY20 Down from the same period last year. Nine Months Results (thousand) (%) Recovering in countries like China and the United States. Asia, the largest market, has been recovering moderately. In
Slide 8: Outline of FY21 Nine Months Results Summary (Consolidated)
Outline of FY21 Nine Months Results Summary (Consolidated) Despite the demand decline caused by the impact related to COVID-19, Operating profit : continued fundamental review of the business operation across the entire company. By improving the efficiency of SG&A and cost reduction efforts, achieve
Slide 9: FY21 Financial Forecast (Consolidated)
FY21 Financial Forecast (Consolidated) Despite the impact of re-expansion of COVID-19 infection and Operating profit : the shortage of semiconductor supply, strive for upward revision from the previous forecast by 100.0 billion yen, 520.0 billion yen. Profit for the year*: Due mainly to the increase
Slide 10: Dividend
Dividend Increase / Change from Dividend per Share FY20 FY21 Decrease previous (Expectation) from FY20 forecast （Yen） st 1 Quarter End 28 11 - 17 - 2 nd Quarter End 28 19 -9 - 3 rd Quarter End 28 26 -2 +7 4 th Quarter End 28 (26) (- 2) (+ 7) Fiscal Year 112 (82) (- 30) (+ 14) 10
Slide 11: Contents
Contents • Outline of FY21 3rd Quarter Financial Results and FY21 Financial Forecasts • FY21 3rd Quarter Financial Results and FY21 Financial Forecasts 11
Slide 12: FY21 3rd Quarter Financial Results (Consolidated)
FY21 3rd Quarter Financial Results (Consolidated) Unit (thousand) Honda Group QTD <Honda Group Unit Sales> Unit Sales FY20 FY21 Change (Consolidated Unit Sales) Results Results Increased unit sales mainly in Pakistan and 5,019 4,269 - 14.9% Motorcycles India, although decreased in Indonesia and Moto
Slide 13: Change in Profit before Income Taxes <FY21 3rd Qtr>
Change in Profit before Income Taxes <FY21 3rd Qtr> Yen (billion) Profit before Income Taxes + 179.6 ( + 86.9 % ) Operating Profit + 111.0 ( + 66.7 % ) Excluding currency effects + 136.5 + 60.7 + 7.8 386.4 Finance + 62.1 - 25.5 income and + 53.4 - 15.1 Currency Share of profit * Finance effects of i
Slide 14: Sales Revenue/Operating Profit (Margin) by Business Segment <FY21 3rd Qtr>
Sales Revenue/Operating Profit (Margin) by Business Segment <FY21 3rd Qtr> upper:FY21 Motorcyle Automobile Financial Services Life Creation and lower:FY20 Business Business Business Other Businesses Unit (thousand) Honda Group 4,269 1,380 - 1,402 (3,019) (809) - (1,402) Unit Sales (Consolidated 5,01
Slide 15: FY21 Nine Months Financial Results (Consolidated)
FY21 Nine Months Financial Results (Consolidated) Income Statements FY20 FY21 Change Yen (billion) Results Results amount % Sales revenue 11,472.9 9,546.7 - 1,926.2 - 16.8% Operating profit 639.2 447.0 - 192.2 - 30.1% Operating margin 5.6% 4.7% - 0.9pt Share of profit of investments accounted for us
Slide 16: Change in Profit before Income Taxes <FY21 Nine Months>
Change in Profit before Income Taxes <FY21 Nine Months> Yen (billion) Profit before Income Taxes - 127.4 ( - 16.2 % ) Operating Profit - 192.2 ( - 30.1 % ) Excluding currency effects - 145.2 786.1 - 452.1 + 76.0 + 54.8 + 9.9 658.7 - 47.0 Finance + 128.6 income Currency Share of profit R&D and effect
Slide 17: Cash Flows of Non-financial Services Businesses
Cash Flows of Non-financial Services Businesses Yen (billion) FY20 FY21 Nine Months Cash flows from operating activities + 698.8 + 761.5 Cash flows from investing activities - 399.8 - 657.5 Free cash flow + 299.0 + 104.0 Cash flows from financing activities - 335.4 - 15.1 Effect of exchange rate chan
Slide 18: Forecast: Honda Unit Sales
Forecast: Honda Unit Sales Unit (thousand) Motorcycles Automobiles Life Creation Honda FY21 FY21 FY21 FY21 FY21 FY21 Group Unit Change Change Change Sales Previous Revised Previous Revised Previous Revised Japan 210 210 - 620 595 - 25 295 320 + 25 North 340 320 - 20 1,535 1,485 - 50 2,775 2,580 - 19
Slide 19: FY21 Financial Forecast (Consolidated)
FY21 Financial Forecast (Consolidated) FY20 FY21 Change Change from Income Statements previous Yen (billion) Results Forecast amount % forecast Sales revenue 14,931.0 12,950.0 - 1,981.0 - 13.3% - 100.0 Operating profit 633.6 520.0 - 113.6 - 17.9% + 100.0 Operating margin 4.2% 4.0% - 0.2pt + 0.8pt Sh
Slide 20: FY21 Forecast: Change in Profit before Income Taxes
FY21 Forecast: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes - 44.9 ( - 5.7 % ) Operating Profit - 113.6 ( - 17.9 % ) Excluding currency effects - 44.6 789.9 - 418.6 + 46.0 - 69.0 + 70.7 - 2.0 745.0 + 211.0 Finance R&D income Currency Share of profit and effects of in
Slide 21: FY21 Forecast: Change in Profit before Income Taxes
FY21 Forecast: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes + 85.0 ( + 12.9 % ) Operating Profit + 100.0 ( + 23.8 % ) Excluding currency effects + 101.0 + 49.0 - 1.0 + 10.0 - 25.0 745.0 + 30.0 Currency Share of profit 660.0 - 18.0 + 40.0 R&D effects of investments ac
Slide 22: FY21 Forecast: Capital Expenditures, Depreciation and R&D
FY21 Forecast: Capital Expenditures, Depreciation and R&D Change from FY20 FY21 Change previous Yen (billion) Results Forecast forecast Capital expenditures *1 375.6 350.0 - 25.6 - Depreciation and amortization *1 396.9 360.0 - 36.9 - Research and development expenditures *2 821.4 800.0 - 21.4 - 20.
Slide 23: 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 24: HONDA The Power of Dreams
HONDA The Power of Dreams
Slide 25: Appendix
Appendix 25
Slide 26: 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 3Q : + 23.9 / + 0.6 % (Exc. currency translation effects:+ 170.6 / + 4.6 %) Change FY20 FY21 Change excluding currency translation effects (%) Motorcycle Business 530.2 490.8 - 39.3 - 3.0 -
Slide 27: Sales Revenue/Operating Profit (Margin) by Business Segment <FY21 Nine Months>
Sales Revenue/Operating Profit (Margin) by Business Segment <FY21 Nine Months> Motorcyle Automobile Financial Services Life Creation and upper:FY21 Business Business Business Other Businesses lower:FY20 Unit (thousand) 10,591 3,425 - 3,855 Honda Group (7,263) (1,899) - (3,855) Unit Sales (Consolidat
Slide 28: 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 1,044.9 1,078.2 2,162.8 2,167.8 190.3 173.5 1,016.5 1,028.9 181.8 137.7 Revenue Operating - 43.1 43.6 101.7 149.9
Slide 29: Capital Expenditures, Depreciation and R&D <FY21 3rd Qtr>
Capital Expenditures, Depreciation and R&D <FY21 3 rd Qtr> QTD YTD FY20 FY21 FY20 FY21 Change Change Results Results Results Results Yen (billion) Capital expenditures 93.6 92.4 - 1.2 228.9 212.5 - 16.4 Depreciation and amortization 96.8 92.2 - 4.6 300.6 272.7 - 27.9 Research and development expendi
Slide 30: 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 - 39.3 - 7.4% 1,585.7 1,258.1 - 327
Slide 31: 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 FY20 FY21 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 - 750 15,038 10,591 - 4,447 19,340