Consolidated Financial Summary for the Fiscal Nine Months Ended December 31, 2022 and Forecasts for the Fiscal Year Ending March 31, 2023

・Despite some unfavorable factors such as 1) a decrease in automobile production and unit sales due to the semiconductor supply shortage and the impact of COVID-19 in China, and 2) an increase in production costs due to an increase in the cost of raw materials and the impact of inflation, consolidated operating profit for the fiscal nine months amounted to 733.9 billion yen, a year-on-year increase by 62.2 billion yen. This was due primarily to pricing that reflects increased product value, an increase in motorcycle unit sales and favorable currency effects.

・Consolidated profit for the fiscal nine months attributable to owners of the parent amounted to 583.1 billion yen, a year-on-year increase by 1.0 billion yen

・Despite a decrease in automobile unit sales due to the semiconductor supply shortage and the impact of COVID-19 in China, and the upward pressure on costs due primarily to the impact of inflation, Honda managed to maintain the previously announced forecast for consolidated operating profit for the current fiscal year ending March 31, 2023 (FY23), 870.0 billion yen, reflecting pricing that reflects increased product value, an increase in motorcycle unit sales mostly in Asia and the company-wide efforts to further improve profitability.

・Honda will acquire its own shares, with the maximum acquisition amount of 70.0 billion yen, with the purposes including improving efficiency of its capital structure and implementing a flexible capital strategy.

I.   Consolidated financial summary and business-by-business results for the fiscal nine months ended December 31, 2022

・Sales revenue: 12,523.4 billion yen (a year-on-year increase of 17.3%)
Increase due primarily to higher motorcycle sales and favorable currency effects.

・Operating profit: 733.9 billion yen (a year-on-year increase of 9.3%)

・Profit for the period attributable to owners of the parent: 583.1 billion yen (a year-on-year increase of 0.2%).

1)   Motorcycle business

Sales revenue: 2,202.3 billion yen (a year-on-year increase of 37.5%)
Increase due primarily to higher sales in Asia and favorable currency effects.

Operating profit: 376.5 billion yen (a year-on-year increase of 62.0%) Increase due primarily to strong sales, positive effects of pricing that reflects increased product value and favorable currency effects. 

2)   Automobile business

Sales revenue: 7,723.5 billion yen (a year-on-year increase of 15.8%)
Increase due primarily to favorable currency effects.

Operating profit: 112.9 billion yen (a year-on-year decrease of 40.1%)
Decrease due primarily to higher raw material costs, impact of inflation and a decrease in unit sales.

Combined with operating profit from financial services business related to automobile sales, the estimated operating profit for automobile business is 325.8 billion yen.

3)   Financial Services business

Operating profit: 220.3 billion yen (a year-on-year decrease of 14.6%) 

4)   Power Product and Other businesses

Operating profit : 24.1 billion yen (a year-on-year increase of 31.5 billion yen)
Aircraft/aircraft engine business, which is included in “Other businesses,” accounted for an operating loss of 18.6 billion yen. 

II.   Forecasts for the fiscal year ending March 31, 2023 (FY23)

・Sales revenue: 17,250.0 billion yen
(downward revision of the previously announced forecast by 150.0 billion yen)

・Operating profit: 870.0 billion yen
(no change from the previously announced forecast)

・Profit for the fiscal year attributable to owners of the parent: 725.0 billion yen
(no change from the previously announced forecast)

Consolidated Financial Results for the Fiscal Nine Months Ended December 31, 2022

   

Fiscal nine months

ended
Dec. 31, 2021
(9 months period)

Fiscal nine months

ended
Dec. 31, 2022
(9 months period)

Difference

Honda

Group
Unit Sales*1
(million units)

Motorcycles 12.775 14.285 +1.510
Automobiles*3 3.000 2.740 -0.260
Power Products 4.500 4.121 -0.379
Consolidated
Unit Sales*2
(million units)
Motorcycles 7.964 9.570 +1.606
Automobiles*3 1.792 1.712 -0.080
Power Products 4.500 4.121 -0.379
Financial
Results
(billion yen)
Sales revenue 10,677.0 12,523.4 +1,846.4
Operating profit 671.6 733.9 +62.2

Share of profit of

investments

accounted for

using the equity

method

157.0 148.8 -8.1

Profit before

income taxes

845.2 859.3 +14.1

Profit for the

period attributable

to owners of the

parent

582.1 583.1 +1.0
Honda’s
Average
Rate (yen)
USD= 111 137 +26*4

Forecasts for the Fiscal Year Ending March 31, 2023 (FY23)

    FY22
results

Previous
FY23

forecasts
(2022/11/9)

Revised
FY23

forecasts
(2023/2/10)

Difference
compared to

FY22 results

Difference
compared to

previous

forecasts

Honda

Group
Unit Sales*1
(million

units)

Motorcycles 17.027 18.430 18.730 +1.703 +0.300
Automobiles*3 4.074 4.100 3.850 -0.224 -0.250
Power Products 6.200 5.665 5.580 -0.620 -0.085

Consolidated
Unit Sales*2
(million

units)

Motorcycles 10.721 12.020 12.110 +1.389 +0.090
Automobiles*3 2.424 2.465 2.430 +0.006 -0.035
Power Products 6.200 5.665 5.580 -0.620 -0.085
Financial
Results
(billion yen)
Sales revenue 14,552.6 17,400.0 17,250.0 +2,697.3 -150.0
Operating profit 871.2 870.0 870.0 -1.2

Share of profit of

investments

accounted for

using the equity

method

202.5 225.0 215.0 +12.4 -10.0

Profit before

income taxes

1,070.1 1,080.0 1,080.0 +9.8

Profit for the year

attributable to

owners of the

parent

707.0 725.0 725.0 +17.9
Annual dividend per share (yen) 120 120 120
Honda’s
Average
Rate (yen)
USD= 112 135 135 +23*4 +0*4

⟨Supplemental data⟩
Consolidated Financial Results for the Fiscal 3rd Quarter Ended December 31, 2022

    3rd quarter ended
Dec. 31, 2021
(3 months period)
3rd quarter ended
Dec. 31, 2022
(3 months period)
Difference
Honda Group
Unit Sales*1
(million units)
Motorcycles 4.602 5.083 +0.481
Automobiles*3 1.085 0.955 -0.130
Power Products 1.270 1.186 -0.084
Consolidated
Unit Sales*2
(million units)
Motorcycles 2.877 3.227 +0.350
Automobiles*3 0.610 0.619 +0.009
Power Products 1.270 1.186 -0.084
Financial
Results
(billion yen)
Sales revenue 3,688.7 4,438.1 +749.4
Operating profit 229.4 280.4 +51.0

Share of profit of

investments

accounted for

using the equity

method

49.7 65.9 +16.1

Profit before

income taxes

284.8 343.5 +58.7

Profit for the

period attributable

to owners of the

parent

192.9 244.6 +51.6
Honda’s
Average
Rate (yen)
USD= 114 142 +28*4

*1 Honda Group Unit Sales is the total unit sales of completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method.

*2 Consolidated Unit Sales is the total unit sales of completed products (motorcycles, ATVs, Side-by-Sides, automobiles, power products) corresponding to consolidated sales revenue, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.

*3 Certain sales of automobiles that are financed with residual value type auto loans and others by our Japanese finance subsidiaries and provided through our consolidated subsidiaries are accounted for as operating leases in conformity with IFRS and are not included in consolidated sales revenue to the external customers in our Automobile business. Accordingly, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our Automobile business.

*4 +: weak yen / - : strong yen

For more details, please check the Investor Relations section of Honda website:
https://www.honda.co.jp/investors/library/financialresult.html (Japanese)
https://global.honda/investors/library/financialresult.html (English)