PR Newswire | Feb 9, 2021 03:39AM EST

for the Fiscal 3rd Quarter Ended December 31, 2020 and Forecasts for the Fiscal Year Ending March 31, 2021

02/09 02:38 CST

Honda Motor Co., Ltd. (HMC:NYSE) announced its Consolidated Financial Summary for the Fiscal 3rd Quarter Ended December 31, 2020 and Forecasts for the Fiscal Year Ending March 31, 2021 TOKYO, Feb. 9, 2021

TOKYO, Feb. 9, 2021 /PRNewswire/ --

* Despite a decrease in demand due to the impact of the COVID-19 pandemic, consolidated operating profit for the fiscal nine months amounted to 447.0 billion yen due primarily to control of selling, general and administrative (SG&A) expenses and cost reduction efforts resulting from a fundamental review of business activities conducted throughout the entire company. * The previously announced forecast for consolidated operating profit for the current fiscal year (April 1, 2020 through March 31, 2021) was revised upward by 100.0 billion yen to 520.0 billion yen. This was despite the impact of both the COVID-19 pandemic and the shortage of semiconductor supply. * The previously announced forecast for profit for the fiscal year attributable to owners of the parent was revised upward by 75.0 billion yen to 465.0 billion yen, a year-on-year increase. * The previously announced forecast for total dividends to be paid for the fiscal year was revised upward by 14 yen per share to 82 yen per share; the quarterly dividend for the fiscal third quarter will be 26 yen per share.

I. Consolidated financial summary for the fiscal nine months ended December 31, 2020

* Sales revenue: 9,546.7 billion yen The year-on-year 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: 447.0 billion yen The improvement 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: 658.7 billion yen * Profit for the period attributable to owners of the parent: 444.1 billion yen

II.Consolidated financial summary and business-by-business results for the fiscal third quarter (3 months) ended December 31, 2020

* Sales revenue: 3,771.5 billion yen (a year-on-year increase of 0.6%) The increase was due primarily to an increase in sales revenue from automobile business. * Operating profit: 277.7 billion yen (a year-on-year increase of 66.7%) The increase was due primarily to increased efficiency of R&D expenditures and cost reduction efforts. This was despite unfavorable currency effects.

1)Motorcycle businessSales revenue: 490.8 billion yen (a year-on-year decrease of 39.3 billion yen) Although sales are recovering in many countries, sales revenue experienced a year-on-year decrease due primarily to decreased sales, mainly in Asia.

Operating profit: 72.7 billion yen (a year-on-year decrease of 1.8 billion yen). The improvement was due primarily to cost reduction efforts and control of SG&A expenses. This was despite a decrease in profit related to changes in sales volume and model mix.

2)Automobile businessSales revenue: 2,638.1 billion yen(a year-on-year increase of 63.2 billion yen) The increase was due primarily to an increase in sales in Japan and the U.S. offsetting a decrease in sales in Europe and Asia.

Operating profit: 123.1 billion yen (a year-on-year increase of 89.4 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. This was despite an increase in SG&A expenses. The operating profit margin also increased.Combined with operating profit from financial services business related to automobile sales, the estimated operating profit for automobile business is 205.4 billion yen.

3)Financial Services businessOperating profit: 85.7 billion yen (a year-on-year increase of 21.1 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 businessesOperating loss:3.8 billion yen(a year-on-year improvement of 2.3 billion yen) The loss was due primarily to a decrease in profit related to changes in sales volume and model mix. Aircraft and aircraft engine business, which is included in other businesses, accounted to an operating loss of 9.1 billion yen.

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

* The future outlook of the market remains uncertain due to the impact of the COVID-19 pandemic. * Despite the impact of the shortage of semiconductor supply, the previously announced forecast for consolidated operating profit for the current fiscal year was revised upward by 100.0 billion yen to 520.0 billion yen. * The previously announced forecast for profit for the fiscal year attributable to owners of the parent was revised upward by 75.0 billion yen to 465.0 billion yen, a year-on-year increase.

Consolidated Financial Results for the Fiscal 3rd Quarter

3rd quarter 3rd quarter ended ended Difference Dec. 31, 2019 Dec. 31, 2020 (3 months period) (3 months period)

Motorcycles 5.019 4.269 - 0.750 Honda Group Unit Sales^ Automobiles^ *1 *3 1.247 1.380 +0.133 (million units) Life Creation1.195 1.402 +0.207

Motorcycles 3.190 3.019 - 0.171 Consolidated Unit Sales^ Automobiles^ *2 *3 0.808 0.809 +0.001 (million units) Life Creation1.195 1.402 +0.207

Sales revenue3,747.5 3,771.5 +23.9 Operating 166.6 277.7 +111.0 profit Share of profit of investments 41.5 102.2 +60.7 Financial accounted for using the Results equity method (billion Profit before206.7 386.4 +179.6 yen) income taxes Profit for the period attributable 116.4 284.0 +167.6 to owners of the parent

Quarterly dividend per 28 26 -2 share (yen)

Honda's JPY appreciated Average USD/JPY 109 104 against the USD by 5 yen/dollar Rate (yen)







Consolidated Financial Results for the Fiscal Nine Months

Fiscal nine monthsFiscal nine months ended Dec. 31, ended Dec. 31, Difference 2019 2020 (9 months period) (9 months period)

Motorcycles 15.038 10.591 - 4.447 Honda Group Unit Sales^ Automobiles^ *1 *3 3.809 3.425 - 0.384 (million units) Life Creation3.630 3.855 +0.225

Motorcycles 9.732 7.263 - 2.469 Consolidated Unit Sales^ Automobiles^ *2 *3 2.541 1.899 - 0.642 (million units) Life Creation3.630 3.855 +0.225

Sales revenue11,472.9 9,546.7 - 1,926.2 Operating 639.2 447.0 -192.2 profit Share of profit of investments 149.7 204.5 +54.8 Financial accounted for using the Results equity method (billion Profit before786.1 658.7 - 127.4 yen) income taxes Profit for the period attributable 485.2 444.1 - 41.1 to owners of the parent

Dividend per share (yen) 84 56 -28

Honda's JPY appreciated Average USD/JPY 109 106 against the USD by 3 yen/dollar Rate (yen)







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

Previous Revised Difference Difference FY20 FY21 FY21 compared to compared results forecasts forecasts to previous FY20 resultsforecasts ?2020/11/6?(2021/2/9)

Motorcycles 19.340 14.800 15.000 -4.340 +0.200 Honda Group Unit Sales^ Automobiles^ *1 *3 4.790 4.600 4.500 -0.290 -0.100 (million units) Life Creation5.701 5.500 5.500 -0.201 -

Motorcycles 12.426 10.145 10.185 -2.241 +0.040 Consolidated Unit Sales^ Automobiles^ *2 *3 3.318 2.715 2.615 -0.703 -0.100 (million units) Life Creation5.701 5.500 5.500 -0.201 -

Sales revenue14,931.013,050.0 12,950.0 -1,981.0 -100.0 Operating 633.6 420.0 520.0 -113.6 +100.0 profit Share of profit of investments Financial 164.2 225.0 235.0 +70.7 +10.0 accounted for Results/ using the equity method Forecasts Profit before789.9 660.0 745.0 -44.9 +85.0 (billion income taxes yen) Profit for the period attributable 455.7 390.0 465.0 +9.2 +75.0 to owners of the parent

Annual dividend per share 112 68 82 -30 +14 (yen)

Honda's JPY to JPY to appreciate appreciate Average USD/JPY 109 106 105 against the against the USD by 4 USD by 1 Rate (yen) yen/dollar yen/dollar

*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 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.

For Additional Information, please visit; https://global.honda/investors/library/financialresult.html

View original content: http://www.prnewswire.com/news-releases/honda-motor-co-ltd-hmcnyse-announced-its-consolidated-financial-summary-for-the-fiscal-3rd-quarter-ended-december-31-2020-and-forecasts-for-the-fiscal-year-ending-march-31-2021-301224608.html

SOURCE Honda Motor Co., Ltd.