TOKYO, Japan, April 28, 2015 – Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal fourth quarter and the fiscal year ended March 31, 2015.
Consolidated operating income for the fiscal fourth quarter (January 1, 2015 through March 31, 2015) amounted to 67.1 billion yen, a decrease of 59.4% compared to the same period last year, due primarily to an increase in selling, general and administrative (SG&A) expenses including quality-related expenses and a decline in automobile unit sales in Japan. This was despite profit-increasing factors such as strong sales in Asia and favorable currency effects associated with depreciation of the Japanese yen.
Consolidated operating income for the fiscal year (April 1, 2014 through March 31, 2015) amounted to 606.8 billion yen, a decrease of 19.1% compared to the previous fiscal year, and consolidated net income*1 for the fiscal year amounted to 493.0 billion yen, a decrease of 14.1% compared to the previous fiscal year, due primarily to an increase in SG&A expenses including quality-related expenses and a decline in automobile unit sales in Japan. This was despite strong sales in Asia, the positive effects of cost reduction efforts and favorable currency effects.
The quarterly dividend for the fiscal fourth quarter will be 22 yen per share, which is the same amount as the quarterly dividend for the same period last year. The total cash dividends to be paid for the fiscal year ended March 31, 2015 are planned to be 88 yen per share, an increase of 6 yen per share from the previous fiscal year. The year-end dividends are matters to be resolved at the general shareholders' meeting.
Consolidated Financial Results for the Fiscal 4th Quarter
| 4th quarter ended Mar. 31, 2014 (3 months period) |
4th quarter ended Mar. 31, 2015 (3 months period) |
Difference | ||
| Honda Group Unit Sales*2 (million units) |
Motorcycles*4 | 4.500 | 4.615 | +0.115 |
| Automobiles*5 | 1.195 | 1.204 | +0.009 | |
| Power Products | 1.990 | 2.057 | +0.067 | |
| Consolidated Unit Sales*3 (million units) |
Motorcycles*4 | 2.730 | 2.779 | +0.049 |
| Automobiles*5 | 0.933 | 0.915 | -0.018 | |
| Power Products | 1.990 | 2.057 | +0.067 | |
| Financial Results (billion yen) |
Net sales and other operating revenue | 3,097.2 | 3,353.7 | +256.4 |
| Operating income | 165.2 | 67.1 | -98.1 | |
| Income before income taxes |
174.7 | 72.0 | -102.6 | |
| Equity in income of affiliates |
37.3 | 36.6 | -0.7 | |
| Net income*1 | 170.5 | 68.0 | -102.4 | |
| Quarterly dividend per share (yen) | 22 | 22 | - | |
| Honda’s Average Rates (yen) |
USD = | 103 | 119 | Down by 16 yen |
| EUR = | 141 | 134 | Up by 7 yen |
|
Consolidated Financial Results for the Fiscal Year ended March 31, 2015 (FY15)
| FY14 results | Previously announced FY15 forecasts (2015/1/30) |
FY15 results | Difference compared to FY14 results | Difference compared to previously announced forecasts | ||
| Honda Group Unit Sales*2 (million units) |
Motorcycles*4 | 17.021 | 17.815 | 17.765 | +0.744 | -0.050 |
| Automobiles*5 | 4.323 | 4.450 | 4.364 | +0.041 | -0.086 | |
| Power Products | 6.036 | 6.120 | 6.001 | -0.035 | -0.119 | |
| Consolidated Unit Sales*3 (million units) |
Motorcycles*4 | 10.343 | 10.790 | 10.742 | +0.399 | -0.048 |
| Automobiles*5 | 3.560 | 3.650 | 3.567 | +0.007 | -0.083 | |
| Power Products | 6.036 | 6.120 | 6.001 | -0.035 | -0.119 | |
| Financial Results (billion yen) |
Net sales and other operating revenue | 11,842.4 | 12,900.0 | 12,646.7 | +804.2 | -253.3 |
| Operating income | 750.2 | 720.0 | 606.8 | -143.4 | -113.2 | |
| Income before income taxes |
728.9 | 745.0 | 644.8 | -84.1 | -100.2 | |
| Equity in income of affiliates |
132.4 | 120.0 | 126.5 | -5.9 | +6.5 | |
| Net income*1 | 574.1 | 545.0 | 493.0 | -81.1 | -52.0 | |
| Annual dividend per share (yen) | 82 | 88 | 88 | +6 | - | |
| Honda's Average Rates (yen) |
USD = | 100 | 109 | 110 | Down by 10 yen |
Down by 1 yen |
| EUR = | 136 | 138 | 139 | Down by 3 yen |
Down by 1 yen |
|
Forecasts for the Fiscal Year ending March 31, 2016 (FY16)
Honda will begin applying the International Financial Reporting Standards (IFRS) voluntarily for its annual securities report (to be submitted to the Financial Services Agency of Japan) and Form 20-F (to be submitted to the U.S. Securities and Exchange Commission) for the fiscal year ended March 31, 2015 (FY15) and thereafter. For this reason, the forecasts for consolidated financial results for the fiscal year ending March 31, 2016 (FY16) are made based on IFRS.
Honda consolidated financial forecasts for the fiscal year ending March 31, 2016 are described below
| FY15 results (U.S. GAAP) |
FY16 forecast(IFRS) | <Reference> FY16 forecast (U.S. GAAP) |
Difference vs. FY15 results | ||||
| Honda Group Unit Sales*2 (million units) |
Motorcycles*4 | 17.765 | 18.225 | 18.095 | +0.330 | ||
| Automobiles*5 | 4.364 | 4.715 | 4.655 | +0.291 | |||
| Power Products | 6.001 | 6.360 | 6.350 | +0.349 | |||
| Consolidated Unit Sales*3 (million units) |
Motorcycles*4 | 10.742 | 11.075 | 11.080 | +0.338 | ||
| Automobiles*5 | 3.567 | 3.715 | 3.750 | +0.183 | |||
| Power Products | 6.001 | 6.360 | 6.350 | +0.349 | |||
| Financial Results/ Forecasts (billion yen) |
Sales revenue*6 | 12,646.7 | 14,500.0 | 13,850.0 | +1,203.2 | ||
| Operating profit*7 | 606.8 | 685.0 | 660.0 | +53.1 | |||
| Share of profit of investments accounted for using the equity method*8 | - | 135.0 | - | - | |||
| Profit before income taxes*9 |
644.8 | 805.0 | 650.0 | +5.1 | |||
| Equity in income of affiliates |
126.5 | - | 140.0 | +13.4 | |||
| Net income*10 | 493.0 | 525.0 | 525.0 | +31.9 | |||
| Annual dividend per share (yen) | 88 | 88 | 88 | - | |||
| Honda's Average Rates (yen) |
USD = | 110 | 115 | 115 | Down by 5 yen |
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| EUR = | 139 | 125 | 125 | Up by 14 yen |
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- *1Net income attributable to Honda Motor Co., Ltd. based on U.S. generally accepted accounting principles.
- *2Honda Group Unit Sales is the total unit sales of completed products (motorcycles, ATVs, automobiles, power products) of Honda, its consolidated subsidiaries and its affiliates accounted for under the equity method.
- *3Consolidated Unit Sales is the total unit sales of completed products (motorcycles, ATVs, automobiles, power products) corresponding to consolidated net sales, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.
- *4Honda Group Unit Sales and Consolidated Unit Sales of ATVs included in motorcycle business for the fiscal 4th quarter ended March 31, 2014 and 2015 are 38 thousand units and 38 thousand units, respectively. Honda Group Unit Sales and Consolidated Unit Sales of ATVs included in motorcycle business for the fiscal year ended March 31, 2014 and 2015 are 120 thousand units and 131 thousand units, respectively.
- *5Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries and sold through our consolidated subsidiaries are accounted for as operating leases in conformity with U.S. GAAP and IFRS and are not included in consolidated net sales to the external customers in our Automobile business. As a result, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our Automobile business.
- *6“Net sales and other operating revenue” under U.S. GAAP is indicated as ”Sales revenue”
- *7“Operating income” under U.S. GAAP is indicated as ”Operating profit”
- *8“Equity in income of affiliates” under U.S. GAAP is indicated as “Share of profit of investments accounted for using the equity method” and included in the “Profit before income taxes” based on IFRS.
- *9“Income before income taxes” under U.S. GAAP is indicated as ”Profit before income taxes”
- *10“Net income attributable to Honda Motor Co., Ltd.” based on U.S. GAAP. “Profit for the year attributable to owners of the parent” based on IFRS.
Notice of Amendment of the Presentation of Consolidated Financial Results for the Fiscal Year Ended March 31, 2015
Honda Motor Co., Ltd. (the “Company”) released on its website today the amendment of the presentation of consolidated financial results for the year ended March 31, 2015 released on April 28, 2015 to recognize the effects of subsequent events.
The Company and its consolidated subsidiaries have been conducting market-based measures in relation to irbag inflators, such as product recalls and a Safety Improvement Campaign. Due to factors arising since May 2015 such as an expansion of the scope of these market-based measures based on an agreement between our supplier and the U.S. National Highway Traffic Safety Administration, a change has arisen in the estimate relating to product warranty expenses as announced on June 12, 2015. The Company recognized the effects of the subsequent events in its consolidated financial results. Please refer to the underlined items in this document for the details of the amendment.
For additional information, please visit;
http://world.honda.com/investors/library/financialresult/
where you can download financial results information.