No.1-7628

 

 

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF AUGUST 2020

COMMISSION FILE NUMBER: 1-07628

HONDA GIKEN KOGYO KABUSHIKI KAISHA

(Name of registrant)

HONDA MOTOR CO., LTD.

(Translation of registrant’s name into English)

1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo 107-8556, Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F  ☒    Form 40-F  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ☐

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):  ☐

 

 

 

Contents

Exhibit 1:

On August 5, 2020, Honda Motor Co., Ltd. (the “Company”) announced its consolidated financial results for the fiscal first quarter ended June 30, 2020.

Exhibit 2:

Honda Motor Co., Ltd. (the “Company”) announces its forecast for consolidated financial results for the fiscal year ending March 31, 2021, which the Company was unable to provide on the occasion of the Fiscal 2020 consolidated financial results on May 12, 2020.

Exhibit 3:

The Board of Directors of Honda Motor Co., Ltd. (the “Company”), at its meeting held on August 5, 2020, resolved to make a distribution of surplus (quarterly dividends), the record date of which is June 30, 2020, and the amount of the projected dividend per share of common stock for the year ending March 31, 2021.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

 

Date: August 6, 2020

August 5, 2020

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL FIRST QUARTER

ENDED JUNE 30, 2020

Tokyo, August 5, 2020 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal first quarter ended June 30, 2020.

First Quarter Results

The spread of coronavirus disease 2019 (COVID-19) has caused the global economic slowdown and also has affected Honda’s consolidated financial results for the three months ended June 30, 2020.

Resulting from travel restriction measures by government, Honda’s production bases in Japan and overseas were also affected by suspended or reduced production mainly due to restrictions on employees’ commute to the workplaces and delays in the supply of parts within the supply chain. Some dealers in Japan and overseas were obliged to suspend business, shorten business hours, or reduce services such as inspections and repairs.

Honda’s consolidated sales revenue for the three months ended June 30, 2020 decreased by 46.9%, to JPY 2,123.7 billion from the same period last year, due mainly to decreased sales revenue in all business operations. Operating loss was JPY 113.6 billion, a decrease of JPY 366.1 billion from the same period last year, due mainly to a decrease in profit attributable to decreased sales revenue and model mix, which was partially offset by decreased selling, general and administrative expenses. Loss before income taxes was JPY 73.4 billion, a decrease of JPY 363.2 billion from the same period last year. Loss for the period attributable to owners of the parent was JPY 80.8 billion, a decrease of JPY 253.1 billion from the same period last year.

Loss per share attributable to owners of the parent for the period amounted to JPY 46.84, a decrease of JPY 144.76 from the corresponding period last year. One Honda American Depository Share represents one common share.

 

—1—

Consolidated Statements of Financial Position for the Fiscal First Quarter Ended June 30, 2020

Total assets decreased by JPY 349.7 billion, to JPY 20,111.7 billion from March 31, 2020 due mainly to a decrease in receivables from financial services, cash and cash equivalents as well as property, plant and equipment, despite an increase in inventories. Total liabilities decreased by JPY 200.6 billion, to JPY 11,974.8 billion from March 31, 2020 due mainly to a decrease in trade payables, accrued expenses as well as deferred tax liabilities, despite increased financing liabilities. Total equity decreased by JPY 149.1 billion, to JPY 8,136.9 billion from March 31, 2020 due mainly to a decrease in retained earnings attributable to loss for the period.

Consolidated Statements of Cash Flows for the Fiscal First Quarter Ended June 30, 2020

Consolidated cash and cash equivalents on June 30, 2020 decreased by JPY 64.5 billion from March 31, 2020, to JPY 2,607.7 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the same period last year, are as follows:

Net cash used in operating activities amounted to JPY 71.7 billion of cash outflows. Cash outflows from operating activities increased by JPY 267.3 billion from the same period last year, due mainly to a decrease in cash received from customers, despite decreased payments for parts and raw materials.

Net cash used in investing activities amounted to JPY 109.3 billion of cash outflows. Cash outflows from investing activities decreased by JPY 58.8 billion from the same period last year, due mainly to decreased payments for acquisitions of other financial assets as well as decreased payments for additions to property, plant and equipment.

Net cash provided by financing activities amounted to JPY 111.9 billion of cash inflows. Cash inflows from financing activities increased by JPY 195.7 billion from the same period last year, due mainly to increased proceeds from financing liabilities.

 

—2—

Forecasts for the Fiscal Year Ending March 31, 2021

Honda was unable to provide a reasonably calculated forecast of the consolidated financial results for the fiscal year ending March 31, 2021, due to impacts relating to the spread of COVID-19. However, based on various factors such as recent environment and trends in Honda’s financial results, Honda projects consolidated results for the fiscal year ending March 31, 2021 to be as shown below:

Fiscal year ending March 31, 2021

 

		Yen (billions)				Changes from FY 2020
Sales revenue			12,800.0				- 14.3	%
Operating profit			200.0				- 68.4	%
Profit before income taxes			365.0				- 53.8	%
Profit for the year			195.0				- 61.8	%
Profit for the year attributable to owners of the parent			165.0				- 63.8	%
		Yen
Earnings per share attributable to owners of the parent
Basic and diluted			95.56

Note: The forecasts are based on the assumption that the average exchange rates for the Japanese yen to the U.S. dollar will be JPY 106 for the full year ending March 31, 2021.

The reasons for the increases or decreases in the forecasts of the operating profit, and profit before income taxes for the fiscal year ending March 31, 2021 from the previous year are as follows.

 

		Yen (billions)
Revenue, model mix, etc.			- 461.6
Cost reduction, the effect of raw material cost fluctuations, etc.			+ 51.0
SG&A expenses			+ 104.0
R&D expenses			- 47.0
Currency effect			- 80.0
Operating profit compared with fiscal year ended March 31, 2020			- 433.6
Share of profit of investments accounted for using the equity method			+ 0.7
Finance income and finance costs			+ 7.9
Profit before income taxes compared with fiscal year ended March 31, 2020			- 424.9

Dividend per Share of Common Stock

The dividend forecast for the fiscal year ending March 31, 2021 was undetermined, as Honda was unable to provide a reasonably calculated forecast of the consolidated financial results for the fiscal year ending March 31, 2021, due to impacts relating to the spread of COVID-19. However, based on the forecast of the consolidated financial results for the fiscal year ending March 31, 2021 as shown above, Honda hereby provides the dividend forecast for the fiscal year ending March 31, 2021, as below.

Fiscal first quarter dividend is JPY 11 per share of common stock.

The Company expects to distribute quarterly cash dividends of JPY 11 per share for each quarter for the fiscal year ending March 31, 2021. As a result, total cash dividends for the fiscal year ending March 31, 2021 are expected to be JPY 44 per share.

 

—3—

This announcement contains “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that the actual results of the Company could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in the principal markets of the Company, its consolidated subsidiaries and its affiliates accounted for by the equity-method, and fluctuation of foreign exchange rates, as well as other factors detailed from time to time. The various factors for increases and decreases in profit have been classified in accordance with a method that Honda considers reasonable.

 

—4—

[1] Condensed Consolidated Statements of Financial Position

March 31, 2020 and June 30, 2020

 

		Yen (millions)
		Mar. 31, 2020				Jun. 30, 2020
Assets
Current assets:
Cash and cash equivalents			2,672,353				2,607,760
Trade receivables			633,909				609,222
Receivables from financial services			1,878,358				1,684,860
Other financial assets			190,053				176,902
Inventories			1,560,568				1,651,700
Other current assets			365,769				334,919
Total current assets			7,301,010				7,065,363
Non-current assets:
Investments accounted for using the equity method			655,475				675,141
Receivables from financial services			3,282,807				3,262,447
Other financial assets			441,724				469,325
Equipment on operating leases			4,626,063				4,587,433
Property, plant and equipment			3,051,704				2,991,499
Intangible assets			760,434				772,428
Deferred tax assets			132,553				87,384
Other non-current assets			209,695				200,714
Total non-current assets			13,160,455				13,046,371
Total assets			20,461,465				20,111,734
Liabilities and Equity
Current liabilities:
Trade payables			958,469				781,767
Financing liabilities			3,248,457				3,334,751
Accrued expenses			449,716				372,092
Other financial liabilities			209,065				221,456
Income taxes payable			43,759				41,489
Provisions			287,175				267,787
Other current liabilities			593,447				530,972
Total current liabilities			5,790,088				5,550,314
Non-current liabilities:
Financing liabilities			4,221,229				4,308,804
Other financial liabilities			303,570				302,042
Retirement benefit liabilities			578,909				588,867
Provisions			238,439				245,811
Deferred tax liabilities			698,868				638,493
Other non-current liabilities			344,339				340,495
Total non-current liabilities			6,385,354				6,424,512
Total liabilities			12,175,442				11,974,826
Equity:
Common stock			86,067				86,067
Capital surplus			171,823				171,811
Treasury stock			(273,940	)			(273,817	)
Retained earnings			8,142,948				8,013,714
Other components of equity			(114,639	)			(113,535	)
Equity attributable to owners of the parent			8,012,259				7,884,240
Non-controlling interests			273,764				252,668
Total equity			8,286,023				8,136,908
Total liabilities and equity			20,461,465				20,111,734

 

—5—

[2] Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Comprehensive Income

Condensed Consolidated Statements of Income

For the three months ended June 30, 2019 and 2020

 

		Yen (millions)
		Three months ended Jun. 30, 2019				Three months ended Jun. 30, 2020
Sales revenue			3,996,253				2,123,775
Operating costs and expenses:
Cost of sales			(3,166,483	)			(1,769,299	)
Selling, general and administrative			(407,449	)			(305,253	)
Research and development			(169,852	)			(162,914	)
Total operating costs and expenses			(3,743,784	)			(2,237,466	)
Operating profit (loss)			252,469				(113,691	)
Share of profit of investments accounted for using the equity method			44,230				39,994
Finance income and finance costs:
Interest income			14,195				4,595
Interest expense			(3,595	)			(1,833	)
Other, net			(17,488	)			(2,498	)
Total finance income and finance costs			(6,888	)			264
Profit (loss) before income taxes			289,811				(73,433	)
Income tax expense			(100,219	)			(6,546	)
Profit (loss) for the period			189,592				(79,979	)
Profit (loss) for the period attributable to:
Owners of the parent			172,302				(80,871	)
Non-controlling interests			17,290				892
		Yen
Earnings (loss) per share attributable to owners of the parent
Basic and diluted			97.92				(46.84	)

 

—6—

Condensed Consolidated Statements of Comprehensive Income

For the three months ended June 30, 2019 and 2020

 

		Yen (millions)
		Three months ended Jun. 30, 2019				Three months ended Jun. 30, 2020
Profit (loss) for the period			189,592				(79,979	)
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans			—				—
Net changes in revaluation of financial assets measured at fair value through other comprehensive income			(6,348	)			4,209
Share of other comprehensive income of investments accounted for using the equity method			(825	)			529
Items that may be reclassified subsequently to profit or loss
Net changes in revaluation of financial assets measured at fair value through other comprehensive income			110				56
Exchange differences on translating foreign operations			(129,218	)			8,819
Share of other comprehensive income of investments accounted for using the equity method			(14,259	)			(5,193	)
Total other comprehensive income, net of tax			(150,540	)			8,420
Comprehensive income for the period			39,052				(71,559	)
Comprehensive income for the period attributable to:
Owners of the parent			28,277				(79,767	)
Non-controlling interests			10,775				8,208

 

—7—

[3] Condensed Consolidated Statements of Changes in Equity

For the three months ended June 30, 2019

 

		Yen (millions)
		Equity attributable to owners of the parent																								Non-controlling interests				Total equity
		Common stock				Capital surplus				Treasury stock				Retained earnings				Other components of equity				Total
Balance as of April 1, 2019			86,067				171,460				(177,827	)			7,973,637				214,383				8,267,720				298,070				8,565,790
Comprehensive income for the period
Profit (loss) for the period															172,302								172,302				17,290				189,592
Other comprehensive income, net of tax																			(144,025	)			(144,025	)			(6,515	)			(150,540	)
Total comprehensive income for the period															172,302				(144,025	)			28,277				10,775				39,052
Reclassification to retained earnings															(2	)			2				—								—
Transactions with owners and other
Dividends paid															(49,287	)							(49,287	)			(44,226	)			(93,513	)
Purchases of treasury stock											(3	)											(3	)							(3	)
Disposal of treasury stock											79												79								79
Share-based payment transactions							78																78								78
Total transactions with owners and other							78				76				(49,287	)							(49,133	)			(44,226	)			(93,359	)
Other changes															176								176								176
Balance as of June 30, 2019			86,067				171,538				(177,751	)			8,096,826				70,360				8,247,040				264,619				8,511,659
For the three months ended June 30, 2020
		Yen (millions)
		Equity attributable to owners of the parent																								Non-controlling interests				Total equity
		Common stock				Capital surplus				Treasury stock				Retained earnings				Other components of equity				Total
Balance as of April 1, 2020			86,067				171,823				(273,940	)			8,142,948				(114,639	)			8,012,259				273,764				8,286,023
Comprehensive income for the period
Profit (loss) for the period															(80,871	)							(80,871	)			892				(79,979	)
Other comprehensive income, net of tax																			1,104				1,104				7,316				8,420
Total comprehensive income for the period															(80,871	)			1,104				(79,767	)			8,208				(71,559	)
Transactions with owners and other
Dividends paid															(48,363	)							(48,363	)			(31,555	)			(79,918	)
Purchases of treasury stock											(1	)											(1	)							(1	)
Disposal of treasury stock											124												124								124
Share-based payment transactions							(12	)															(12	)							(12	)
Equity transactions and others																											2,251				2,251
Total transactions with owners and other							(12	)			123				(48,363	)							(48,252	)			(29,304	)			(77,556	)
Balance as of June 30, 2020			86,067				171,811				(273,817	)			8,013,714				(113,535	)			7,884,240				252,668				8,136,908

 

—8—

[4] Condensed Consolidated Statements of Cash Flows

For the three months ended June 30, 2019 and 2020

 

		Yen (millions)
		Three months ended Jun. 30, 2019				Three months ended Jun. 30, 2020
Cash flows from operating activities:
Profit (loss) before income taxes			289,811				(73,433	)
Depreciation, amortization and impairment losses excluding equipment on operating leases			170,016				149,419
Share of profit of investments accounted for using the equity method			(44,230	)			(39,994	)
Finance income and finance costs, net			(9,127	)			6,752
Interest income and interest costs from financial services, net			(32,344	)			(28,354	)
Changes in assets and liabilities
Trade receivables			9,919				33,546
Inventories			(12,930	)			(91,946	)
Trade payables			(53,045	)			(134,776	)
Accrued expenses			(34,712	)			(87,180	)
Provisions and retirement benefit liabilities			10,907				9,395
Receivables from financial services			6,582				199,194
Equipment on operating leases			(53,086	)			16,833
Other assets and liabilities			(83,469	)			(35,335	)
Other, net			1,866				(2,402	)
Dividends received			26,632				5,468
Interest received			73,532				58,567
Interest paid			(32,873	)			(27,577	)
Income taxes paid, net of refunds			(37,861	)			(29,945	)
Net cash provided by (used in) operating activities			195,588				(71,768	)
Cash flows from investing activities:
Payments for additions to property, plant and equipment			(97,415	)			(84,090	)
Payments for additions to and internally developed intangible assets			(58,172	)			(50,151	)
Proceeds from sales of property, plant and equipment and intangible assets			7,885				3,231
Payments for acquisitions of subsidiaries, net of cash and cash equivalents acquired			—				2,230
Payments for acquisitions of investments accounted for using the equity method			(2,401	)			—
Payments for acquisitions of other financial assets			(60,055	)			(38,460	)
Proceeds from sales and redemptions of other financial assets			42,018				57,920
Net cash used in investing activities			(168,140	)			(109,320	)
Cash flows from financing activities:
Proceeds from short-term financing liabilities			2,049,304				2,847,881
Repayments of short-term financing liabilities			(2,318,708	)			(2,687,827	)
Proceeds from long-term financing liabilities			494,872				405,004
Repayments of long-term financing liabilities			(219,727	)			(376,788	)
Dividends paid to owners of the parent			(49,287	)			(48,363	)
Dividends paid to non-controlling interests			(22,967	)			(9,282	)
Purchases and sales of treasury stock, net			76				123
Repayments of lease liabilities			(17,400	)			(18,291	)
Other, net			2				(555	)
Net cash provided by (used in) financing activities			(83,835	)			111,902
Effect of exchange rate changes on cash and cash equivalents			(46,546	)			4,593
Net change in cash and cash equivalents			(102,933	)			(64,593	)
Cash and cash equivalents at beginning of year			2,494,121				2,672,353
Cash and cash equivalents at end of period			2,391,188				2,607,760

 

—9—

[5] Assumptions for Going Concern

None

[6] Notes to Consolidated Financial Statements

[A] Segment Information

Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Life creation and other businesses, which are based on Honda’s organizational structure and characteristics of products and services. Operating segments are defined as the components of Honda for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The accounting policies used for these reportable segments are consistent with the accounting policies used in the Company’s condensed consolidated interim financial statements.

Principal products and services, and functions of each segment are as follows:

 

Segment		Principal products and services		Functions
Motorcycle Business		Motorcycles, all-terrain vehicles (ATVs), side-by-sides (SxS) and relevant parts		Research and development Manufacturing Sales and related services
Automobile Business		Automobiles and relevant parts		Research and development Manufacturing Sales and related services
Financial Services Business		Financial services		Retail loan and lease related to Honda products Others
Life Creation and Other Businesses		Power products and relevant parts, and others		Research and development Manufacturing Sales and related services Others

Segment information based on products and services

As of and for the three months ended June 30, 2019

 

		Yen (millions)
		Motorcycle Business				Automobile Business				Financial Services Business				Life Creation and Other Businesses				Segment Total				Reconciling Items				Consolidated
Sales revenue:
External customers			533,018				2,694,478				688,401				80,356				3,996,253				—				3,996,253
Intersegment			—				55,662				3,624				4,888				64,174				(64,174	)			—
Total			533,018				2,750,140				692,025				85,244				4,060,427				(64,174	)			3,996,253
Segment profit (loss)			69,873				120,375				65,782				(3,561	)			252,469				—				252,469
Segment assets			1,500,514				8,104,744				10,076,682				338,134				20,020,074				286,628				20,306,702
Depreciation and amortization			17,072				146,891				206,866				3,579				374,408				—				374,408
Capital expenditures			13,552				101,076				576,451				3,058				694,137				—				694,137
As of and for the three months ended June 30, 2020
		Yen (millions)
		Motorcycle Business				Automobile Business				Financial Services Business				Life Creation and Other Businesses				Segment Total				Reconciling Items				Consolidated
Sales revenue:
External customers			274,222				1,209,923				575,834				63,796				2,123,775				—				2,123,775
Intersegment			—				45,800				3,168				4,441				53,409				(53,409	)			—
Total			274,222				1,255,723				579,002				68,237				2,177,184				(53,409	)			2,123,775
Segment profit (loss)			11,202				(195,888	)			71,568				(573	)			(113,691	)			—				(113,691	)
Segment assets			1,386,342				7,641,611				10,202,227				352,249				19,582,429				529,305				20,111,734
Depreciation and amortization			16,775				126,793				206,150				3,888				353,606				—				353,606
Capital expenditures			8,550				89,371				396,701				2,082				496,704				—				496,704

Explanatory notes:

 

1.	Intersegment sales revenues are generally made at values that approximate arm’s-length prices.

2.

Reconciling items include elimination of intersegment transactions and balances as well as unallocated corporate assets. Unallocated corporate assets, included in reconciling items as of June 30, 2019 and 2020 amounted to JPY 551,689 million and JPY 820,941 million, respectively, which consist primarily of the Company’s cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

 

—10—