Honda Motor Co., Ltd. (HMC:NYSE) Announced Its Consolidated Financial Summary For The Fiscal Year Ended March 31, 2021 And Forecasts For The Fiscal Year Ending March 31, 2022

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  • Despite some unfavorable factors such as a decrease in demand due to the impact of the COVID-19 pandemic and the impact of semiconductor supply shortages, consolidated operating profit for the fiscal year ended March 31, 2021 (FY21) amounted to 660.2 billion yen due primarily to control of selling, general and administrative (SG&A) expenses and cost reduction efforts based on a review of business activities, as well as an increase in profit due to a year-on-year difference in the amount of the provision for credit losses recorded for financial services business.
  • Consolidated profit for the year attributable to owners of the parent experienced a year-on-year increase and amounted to 657.4 billion yen, due also to an increase in the share of profit of investments accounted for using the equity method.
  • Despite the impact of an increase in raw material prices and a year-on-year difference in the amount of the provision for credit losses recorded, Honda plans to achieve a consolidated operating profit of 660 billion yen for the fiscal year ending March 31, 2022 (FY22), equivalent to that of FY21, by increasing unit sales and making progress in initiatives to solidify its existing businesses. Although production adjustments are currently being made at some Honda production operations globally due primarily to semiconductor supply shortages, Honda will minimize the impact of such production adjustments for the full-year results.
  • Quarterly dividend for the fiscal fourth quarter will be 54 yen per share; total dividends to be paid for the fiscal year ended March 31, 2021(FY21) will be 110 yen per share, an increase by 28 yen per share compared to the previously announced forecast.
  • The forecast for total dividends to be paid for the fiscal year ending March 31, 2022(FY22) is 110 yen per share, equivalent to that of FY21.
  • With the aim to ensure stable and constant dividend distribution, the frequency of dividend payments will be changed to twice a year.
*To be implemented after the approval at the General Meeting of Shareholders.

I.  Consolidated financial summary for the fiscal year ended March 31, 2021(FY21)

  • Sales revenue: 13,170.5 billion yen (a year-on-year decrease of 11.8%)
    The year-on-year decrease was due to a decrease in sales revenue from all businesses due primarily to the impact of the COVID-19 pandemic.
  • Operating profit: 660.2 billion yen (a year-on-year increase of 4.2%)
    The year-on-year 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 volume and model mix.
  • Profit before income taxes: 914.0 billion yen (a year-on-year increase of 15.7%)
  • Profit for the year attributable to owners of the parent: 657.4 billion yen (a year-on-year increase of 44.3%)

II.  Consolidated financial summary and business-by-business results for the fiscal fourth quarter (3 months) ended March 31, 2021(FY21)

  • Sales revenue: 3,623.8 billion yen (a year-on-year increase of 4.8%)
    The increase was due to an increase in sales revenue from all businesses.
  • Operating profit: 213.2 billion yen (a year-on-year increase of 218.8 billion yen) The increase was due primarily to control of SG&A expenses and an increase in profit related to changes in sales volume and model mix.

1)  Motorcycle business
Sales revenue: 529.1 billion yen (a year-on-year increase of 55.5 billion yen)
The increase was due to the recovery of sales mainly in Asia.   

Operating profit: 72.2 billion yen (a year-on-year increase of 8.7 billion yen).
The increase was due primarily to an increase in profit related to changes in sales volume and model mix and cost reduction efforts.

2)  Automobile business
Sales revenue: 2,418.4 billion yen (a year-on-year increase of 79.6 billion yen)
The increase was due primarily to an increase in sales in Asia. This was despite a decrease in sales in some regions including the U.S. and Europe.

Operating profit: 37.6 billion yen (a year-on-year increase of 113.3 billion yen)
The increase was due primarily to control of SG&A expenses and an increase in profit related to changes in sales volume and model mix.
Combined with operating profit from financial services business related to automobile sales, the estimated operating profit for automobile business is 140.4 billion yen.

3)  Financial Services business
Operating profit: 106.3 billion yen (a year-on-year increase of 83.4 billion yen)
The increase was due primarily to a year-on-year difference in the amount of the provision for credit losses recorded. 

4)  Life Creation (power products) and Other businesses
Operating loss: 3.0 billion yen (a year-on-year improvement of 13.3 billion yen)
Aircraft/aircraft engine business, which is included in “Other businesses,” accounted to an operating loss of 7.8 billion yen.

III.  Forecasts for the Fiscal Year Ending March 31, 2022(FY22)

Despite the impact of an increase in raw material prices and a year-on-year difference in the amount of the provision for credit losses recorded, Honda plans to achieve a consolidated operating profit of 660 billion yen for the fiscal year ending March 31, 2022 (FY22), equivalent to that of FY21, by increasing unit sales and making progress in initiatives to solidify its existing businesses, which includes optimization of production capacity and increasing development efficiency.

Consolidated Financial Results for the Fiscal 4th Quarter ended March 31, 2021(FY21)

4th quarter endedMar. 31, 2020 (3 months period)4th quarter endedMar 31, 2021 (3 months period)Difference
Honda GroupUnit Sales*1(million units)Motorcycles4.3024.541+0.239
Automobiles*30.9811.121+0.140
Life Creation2.0711.768-0.303
ConsolidatedUnit Sales*2(million units)Motorcycles2.6943.001+0.307
Automobiles*30.7770.718-0.059
Life Creation2.0711.768-0.303
FinancialResults(billion yen)Sales revenue3,458.03,623.8+165.7
Operating profit -5.6213.2+218.8
Share of profit of investments accounted for using the equity method14.468.1+53.6
Profit before income taxes3.7255.3+251.5
Profit for the periodattributable to owners of theparent-29.5213.3+242.8
Quarterly dividend per share (yen)2854+26
Honda’sAverage Rate(yen)USD=109106JPY appreciated
against the USD
by 3 yen/dollar

Consolidated Financial Results for the Fiscal Year Ended March 31, 2021(FY21)

FY20resultsPreviousFY21 forecasts(2021/2/9)FY21Results (2021/5/14)Differencecompared toFY20 resultsDifference compared to previous forecasts
Honda GroupUnit Sales*1(million units)Motorcycles19.34015.00015.132-4.208+0.132
Automobiles*34.7904.5004.546-0.244+0.046
Life Creation5.7015.5005.623-0.078+0.123
ConsolidatedUnit Sales*2(million units)Motorcycles12.42610.18510.264-2.162+0.079
Automobiles*33.3182.6152.617-0.701+0.002
Life Creation5.7015.5005.623-0.078+0.123
FinancialResults(billion yen)Sales revenue14,931.012,950.013,170.5-1,760.4+220.5
Operating profit 633.6520.0660.2+26.5+140.2
Share of profit of investments accounted for using the equity method164.2235.0272.7+108.5+37.7
Profit before income taxes789.9745.0914.0+124.1+169.0
Profit for the yearattributable to owners of theparent455.7465.0657.4+201.6+192.4
Annual dividend per share (yen)11282110-2+28
Honda’sAverage Rate(yen)USD=109105106JPY appreciated against the
USD by
3 yen/dollar
JPY
depreciated
against the
USD by
1 yen/dollar

Forecasts for the Fiscal Year Ending March 31, 2022 (FY22)

FY21resultsFY22forecasts(2021/5/14)Differencecompared toFY21 results
Honda GroupUnit Sales*1(million units)Motorcycles15.13218.000+2.868
Automobiles*34.5465.000+0.454
Life Creation5.6235.900+0.277
ConsolidatedUnit Sales*2(million units)Motorcycles10.26411.860+1.596
Automobiles*32.6173.030+0.413
Life Creation5.6235.900+0.277
FinancialResults/Forecasts(billion yen)Sales revenue13,170.515,200.0+2,029.4
Operating profit 660.2660.0-0.2
Share of profit of investmentsaccounted for using the equity method272.7220.0-52.7
Profit before income taxes914.0870.0-44.0
Profit for the yearattributable to owners of theparent657.4590.0-67.4
Annual dividend per share (yen)110110
Honda’sAverage Rate(yen)USD=106105JPY to appreciate
against the USD
by
1 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.

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