• Despite a decrease in demand due to the impact of the COVID-19 pandemic, consolidated operating profit for the fiscal first half amounted to 169.2 billion yen, back in the black, due primarily to control of selling, general and administrative (SG&A) expenses resulting from a fundamental review of business activities in all areas.
  • Consolidated operating profit for the fiscal second quarter amounted to 282.9 billion yen, an increase of 28.5% compared to the same period last year, due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix.
  • Concerning the current fiscal year forecast, although the future outlook remains uncertain due to the impact of COVID-19, the forecast for consolidated operating profit was revised upward to 420 billion yen reflecting the business constitution built during the fiscal first half.
  • Quarterly dividend for the fiscal second quarter will be 19 yen per share, an increase of 8 yen per share compared to the previously announced forecast; total dividends paid for the fiscal year are planned to be 68 yen per share.

I. Consolidated financial summary for the fiscal first half (6 months) ended September 30, 2020

  • Sales revenue: 5,775.1 billion yen (a year-on-year decrease of 25.2%)
    The decrease was due primarily to a decrease in sales revenue from all businesses as a result of the impact of the COVID-19 pandemic.
  • Operating profit: 169.2 billion yen (a year-on-year decrease of 64.2%)
    The improvement was made due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix.
  • Profit before income taxes: 272.2 billion yen
  • Profit for the period attributable to owners of the parent: 160.0 billion yen
    (a year-on-year decrease by 56.6%)

II . Consolidated financial summary and business-by-business results for the fiscal second quarter (3 months) ended September 30, 2020

  • Sales revenue: 3,651.3 billion yen (a year-on-year decrease of 2.1%)
    The decrease was due primarily to a decrease in sales revenue from automobile businesses and unfavorable foreign currency translation effects.
  • Operating profit: 282.9 billion yen (a year-on-year increase of 28.5%)
    The increase was due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix.
  • 1)Motorcycle business
    Sales revenue: 493.0 billion yen
     (a year-on-year decrease of 29.4 billion yen)
    Although sales are recovering in many countries, sales revenue experienced a year-on-year decrease due primarily to unfavorable currency effects.

    Operating profit: 68.4 billion yen (a year-on-year decrease of 9.3 billion yen).
    The improvement was made due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix.

  • 2)Automobile business
    Sales revenue: 2,467.0 billion yen 
    (a year-on-year decrease of 63.7 billion yen)
    Although sales are gradually recovering in many countries as restrictions on economic activities are being lifted, sales revenue experienced a year-on-year decrease due to a decrease in sales mainly in North America and Asia.

    Operating profit: 125.3 billion yen
     (a year-on-year increase of 50.4 billion yen)
    The increase was made due primarily to control of SG&A expenses and cost reduction efforts. This was despite a decrease in profit related to changes in sales revenue and model mix. The operating profit margin also improved.
  • 3)Financial Services business
    Operating profit: 93.2 billion yen
     (a year-on-year increase of 26.9 billion yen)
    The increase was due primarily to a decrease in credit losses related to automobile sales.
  • 4)Life Creation (power products) and Other businesses
    Operating loss: 4.1 billion yen
    (operating profit experienced a year-on-year decrease by 5.2 billion yen)
    The decrease was due primarily to a decrease in profit related to changes in sales revenue and model mix. Aircraft and aircraft engine business, which is included in other businesses, accounted for operating loss of 8.1 billion yen.

III. Forecasts for the Fiscal Year Ending March 31, 2021 (FY21)

  • The forecast for consolidated operating profit for FY21 was revised upward from the previously announced 200 billion yen to 420 billion yen reflecting an increase in unit sales and the business constitution built during the fiscal first half.
  • Honda will continue making steady progress in improving its business structure.

Consolidated Financial Results for the Fiscal 2nd Quarter

  2nd quarter
ended
Sep. 30, 2019
(3 months period)
2nd quarter
ended
Sep. 30, 2020
(3 months period)
Difference
Honda Group
Unit Sales*1
(million units)
Motorcycles5.0984.467– 0.631
Automobiles*31.2411.253+0.012
Life Creation1.1551.370 +0.215
Consolidated
Unit Sales*2
(million units)
Motorcycles3.2783.023– 0.255
Automobiles*30.8280.753– 0.075
Life Creation1.1551.370 +0.215
Financial
Results
(billion yen)
Sales revenue3,729.13,651.3– 77.7
Operating profit220.1282.9+62.8
Share of profit of investments accounted for using the equity method63.962.3-1.6
Profit before income taxes289.6345.7+56.1
Profit for the period attributable to owners of the parent196.5240.9+44.4
Quarterly dividend per share (yen)2819-9
Honda’s
Average
Rate (yen)
USD=107106JPY appreciated
against the USD
by 1 yen/dollar

Consolidated Financial Results for the Fiscal First Half

  Fiscal first half
ended S
ep. 30, 2019
(6 months period)
Fiscal first half
ended
Sep. 30, 2020
(6 months period)
Difference
Honda Group
Unit Sales*1
(million units)
Motorcycles10.0196.322– 3.697
Automobiles*32.5622.045– 0.517
Life Creation2.4352.453+0.018
Consolidated
Unit Sales*2
(million units)
Motorcycles6.5424.244– 2.298
Automobiles*31.7331.090– 0.643
Life Creation2.4352.453+0.018
Financial
Results
(billion yen)
Sales revenue7,725.35,775.1– 1,950.2
Operating profit472.6169.2-303.3
Share of profit of investments accounted for using the equity method108.1102.2-5.8
Profit before income taxes579.4272.2– 307.1
Profit for the period attributable to owners of the parent368.8160.0– 208.8
Dividend per share (yen)5630-26
Honda’s
Average
Rate (yen)
USD=109107JPY appreciated
against the USD
by 2 yen/dollar

Forecasts for the Fiscal Year Ending March 31, 2021 (FY21)

  FY20
results
Previous
FY21 forecasts
(2020/8/5)
Revised
FY21 forecasts
(2020/11/6)
Difference
compared to
FY20 results
Difference
compared
to previous
forecasts
Honda Group
Unit Sales*1
(million units)
Motorcycles19.34014.80014.800-4.540
Automobiles*34.7904.5004.600-0.190+0.100
Life Creation5.7015.3105.500-0.201+0.190
Consolidated
Unit Sales*2
(million units)
Motorcycles12.4269.71510.145-2.281+0.430
Automobiles*33.3182.6852.715-0.603+0.030
Life Creation5.7015.3105.500-0.201+0.190
Financial
Results/
Forecasts
(billion yen)
Sales revenue14,931.012,800.013,050.0-1,881.0+250.0
Operating profit633.6200.0420.0-213.6+220.0
Share of profit of investments
accounted for using the equity method
164.2165.0225.060.7+60.0
Profit before income taxes789.9365.0660.0-129.9+295.0
Profit for the period
attributable to owners of the parent
455.7165.0390.0-65.7+225.0
Annual dividend per share (yen)1124468-44+24
Honda’s
Average
Rate (yen)
USD=109106106JPY to appreciate
against the USD
by 3 yen/dollar
  • *1Honda 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.
  • *2Consolidated 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.
  • *3Certain 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 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.

NC

Ka-Chow!