Honda Motor Co., Ltd. · TSE:7267
Honda Motor — Q2 2024 Earnings Presentation
29 slides from Honda Motor's earnings presentation, Nov 10, 2023
Slide 1: FY24 2nd Quarter Financial Results
FY24 2nd Quarter Financial Results November 9, 2023 1
Slide 2: Contents
Contents FY24 2nd Quarter Financial Results and FY24 Financial Forecast • Summary • Details 2
Slide 3: Summary
Summary ■ FY24 Six Months Results (Apr. - Sep.) ⚫ In addition to highly profitable Motorcycle operations, profitability of Automobile operations improved significantly due to the recovery in production volume mainly in North America through delivering the competitive products to our customers, achie
Slide 4: Main Market (Automobile Business)
Main Market (Automobile Business) ◼ Sales Results in FY24 (2Q) Main Countries Retail • In the United States, significantly increased over the same period last year due to stable damand, recovery in production thorough YTD（ Apr. - Sep. ） Unit vs. FY23 the secure of semiconductors and competitive new
Slide 5: Main Market (Motorcycle Business)
Main Market (Motorcycle Business) Main Countries Wholesale ◼ Sales Results in FY24 (2Q) YTD: Overall, exceeded the same period last year mainly due to Unit vs. FY23 firm demand in Indonesia and Europe. YTD（ Apr. - Sep. ） (thousand) (%) QTD: Despite an increase in Indonesia and Brazil due to firm Ind
Slide 6: Summary of FY24 2nd Qtr. Results (Six Months)
Summary of FY24 2nd Qtr. Results (Six Months) Operating Despite a negative impact from warranty expenses, profit : operating profit increased by 243.1 billion yen to 696.5 billion yen. This was primarily due to an increase in unit sales and pricing that reflects increased products value, as well as
Slide 7: FY24 Financial Forecast
FY24 Financial Forecast vs Previous Forecast: Operating Despite challenging environment mainly in China and Asia as well as an profit : increase in warranty expenses in the first half, reflects further strengthening of earnings structure and the positive impacts from currency effects, operating prof
Slide 8: Dividends
Dividends Dividend per Share (Yen) FY24 FY24 Change from (pre-stock split) Previous Forecast previous *1 Interim Dividend 75 87 + 12 Year-end Dividend 25 29 +4 (75) (87) (+ 12) - - - *2 Fiscal Year (150) (174) (+ 24) *1 The company implemented the stock split into 3 shares per share with the effecti
Slide 9: Contents
Contents FY24 2nd Quarter Financial Results and FY24 Financial Forecast • Summary • Details 9
Slide 10: 2nd Qtr. Results: Honda Unit Sales (Six Months)
FY24 2nd Qtr. Results: Honda Unit Sales (Six Months) Unit (thousand) Motorcycles Automobiles Power Products Honda YTD (Six Months) YTD (Six Months) YTD (Six Months) Group Unit Sales FY23 FY24 Change FY23 FY24 Change FY23 FY24 Change Japan 114 122 +8 241 259 + 18 184 132 - 52 North 220 255 + 35 542 7
Slide 11: 2nd Qtr. Results: Change in Profit before Income Taxes
FY24 2nd Qtr. Results: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes + 363.4 ( + 70.5 % ) Operating Profit + 243.1 ( + 53.6 % ) + 205.7 - 214.3 + 136.5 879.2 + 219.2 + 62.4 - 16.2 - 30.0 Price/Cost Profit of other Expenses impacts *2 R&D Currency equity method 515.8 e
Slide 12: Sales Revenue/Operating Profit by Business Segment (Six Months)
FY24 2nd Qtr. Results: Sales Revenue/Operating Profit (Margin) by Business Segment (Six Months) upper：FY24 Motorcyle Automobile Financial Services Power Products and lower：FY23 Business Business Business Other Businesses Unit (thousand) 9,266 1,934 - 1,826 Honda Group (6,006) (1,332) - (1,826) Unit
Slide 13: Cash Flows of Non-financial Services Businesses
Cash Flows of Non-financial Services Businesses Yen (billion) FY23 FY24 Six Months Cash flows from operating activities + 555.0 + 995.8 Cash flows from investing activities - 401.6 - 262.8 Free cash flow + 153.3 + 732.9 Cash flows from financing activities - 205.2 - 327.6 Effects of exchange rate ch
Slide 14: 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 270 255 - 15 555 630 + 75 340 320 - 20 North 470 500 + 30 1,645 1,620 - 25 1,540 1,075
Slide 15: Forecast: Change in Profit before Income Taxes
FY24 Forecast: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes + 515.4 ( + 58.6 % ) Operating Profit + 419.2 ( + 53.7 % ) + 394.0 - 321.4 + 138.6 1,395.0 - 51.0 + 26.0 - 42.4 + 371.6 Expenses Price/Cost *2 R&D Currency Profit of Other impacts effects equity method *3 87
Slide 16: Forecast: Change in Profit before Income Taxes (vs Previous Forecast)
FY24 Forecast: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes + 210.0 ( + 17.7 % ) Operating Profit + 200.0 ( + 20.0 % ) + 294.0 - 110.0 + 120.0 1,395.0 + 129.0 - 163.0 1,185.0 - 69.0 Profit of Other + 9.0 equity method Sales Price/Cost Currency Expenses R&D impacts im
Slide 17: 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 + 40.0 Depreciation and amortization *1 439.3 480.0 + 40.6 + 35.0 Research and development expenditures *2 852.0 990.0 + 137.9
Slide 18: Caution with Respect to Forward-Looking Statements
Caution with Respect to Forward-Looking Statements: This presentation 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 actua
Slide 19: HONDA | How we move you.
HONDA | Howwe move you. The Power of Dreams CREATE » TRANSCEND, AUGMENT
Slide 20: Appendix
Appendix
Slide 21: 2nd Qtr. Results: Change in Profit before Income Taxes (Three Months)
FY24 2nd Qtr. Results: Change in Profit before Income Taxes Yen (billion) Profit before Income Taxes + 85.9 ( + 30.9 % ) Operating Profit + 70.8 ( + 30.7 % ) + 139.8 - 184.5 + 85.4 + 39.2 - 36.4 + 51.5 364.3 Price/Cost - 9.2 278.4 impacts Expenses R&D Currency Profit of Other *2 effects equity metho
Slide 22: Sales Revenue/Operating Profit by Business Segment (Three Months)
FY24 2nd Qtr. Results: Sales Revenue/Operating Profit (Margin) by Business Segment (Three Months) upper：FY24 Motorcyle Automobile Financial Services Motorcycles Power Products and lower：FY23 Business Business Business Other Businesses Unit (thousand) 4,793 1,033 - 843 Honda Group (3,136) (699) - (84
Slide 23: Change in Sales Revenue
Change in Sales Revenue (Sales revenue from external customers） Yen (billion) Three Months Compared with FY23 2Q : + 728.6 / + 17.1% (Excluding currency translation effects：+ 568.0 / + 13.3%) Change FY23 FY24 Change excluding currency translation effects （％） Motorcycle Business 736.6 815.6 + 78.9 +
Slide 24: Changes in Operating Profit in Motorcycle/Automobile Business
FY24 2nd Qtr. Results: Changes in Operating Profit in Motorcycle Business/Automobile Business (Six Months) Yen (billion) Motorcycle Operating Profit + 28.6 ( + 12.7% ) Business + 70.1 - 70.1 + 23.0 - 3.0 + 8.6 253.3 224.7 Price/Cost Expenses R&D Currency Sales impacts *2 effects impacts *1 Operating
Slide 25: Sales Revenue/Operating Profit by Geographical Segment
FY24 2nd 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 1,168.6 1,361.0 2,317.9 2,909.2 151.8 233.0 1,326.9 1,250.8 203.9 260.6 Operating Profit 55.9
Slide 26: 2nd Qtr. Results: Capital Expenditures/Depreciation/R&D
FY24 2nd Qtr. Results: Capital Expenditures/Depreciation/R&D QTD (Three Months) YTD (Six Months) FY23 FY24 FY23 FY24 Change Change Yen (billion) Results Results Results Results Capital expenditures 140.5 73.2 - 67.2 242.1 135.2 - 106.8 Depreciation and 105.8 123.3 + 17.5 207.3 246.2 + 38.8 amortizat
Slide 27: Consolidated Statements of Financial Position
FY24 2nd Qtr.: Consolidated Statements of Financial Position Divided into Non-financial Services Businesses and Finance Subsidiaries Yen (billion) Assets Mar. 31, 2023 Sep. 30, 2023 Liabilities and Equity Mar. 31, 2023 Sep. 30, 2023 Cash and cash equivalents 3,553.6 4,237.4 Trade payables 1,379.3 1,
Slide 28: 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 + 78.9 + 10.7% 1,412.6 1,572.5 + 159.8 +
Slide 29: 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 - 158 9,202 9,266 + 64 18,757 18,800 + 43