PR Newswire | Nov 6, 2020 03:03AM EST

2020

11/06 02:02 CST

Consolidated Financial Summary for the Fiscal 2nd Quarter Ended September 30, 2020 TOKYO, Nov. 6, 2020

TOKYO, Nov. 6, 2020 /PRNewswire/ --

* 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 businessSales 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 businessSales 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 businessOperating 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 businessesOperating 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 2nd quarterquarter ended ended Sep. Sep. Difference 30, 30, 2019 2020 (3 (3 months months period)period)

Honda Group Motorcycles 5.098 4.467 - 0.631 Unit Sales^ *1 Automobiles^*3 1.241 1.253 +0.012 (million units) Life Creation 1.155 1.370 +0.215

ConsolidatedMotorcycles 3.278 3.023 - 0.255 Unit Sales*^2 Automobiles^*3 0.828 0.753 - 0.075 (million units) Life Creation 1.155 1.370 +0.215

Sales revenue 3,729.13,651.3- 77.7 Operating profit 220.1 282.9 +62.8 Share of profit of Financial investments accounted for 63.9 62.3 -1.6 using the equity method Results Profit before income taxes 289.6 345.7 +56.1 (billion yen) Profit for the period attributable to owners of 196.5 240.9 +44.4 the parent

Quarterly dividend per share (yen) 28 19 -9

Honda's JPY appreciated Average USD= 107 106 against the USD by 1 yen/dollar Rate (yen)

Consolidated Financial Results for the Fiscal First Half

Fiscal firstFiscal first half ended half ended Sep. 30, Sep. 30, 2019 2020 Difference (6 months (6 months period) period)

Honda Group Motorcycles 10.019 6.322 - 3.697 Unit Sales^ *1 Automobiles^*3 2.562 2.045 - 0.517 (million units) Life Creation 2.435 2.453 +0.018

ConsolidatedMotorcycles 6.542 4.244 - 2.298 Unit Sales*^2 Automobiles^*3 1.733 1.090 - 0.643 (million units) Life Creation 2.435 2.453 +0.018

Sales revenue 7,725.3 5,775.1 - 1,950.2 Operating profit 472.6 169.2 -303.3 Share of profit of investments accounted 108.1 102.2 -5.8 Financial for using the equity method Results Profit before income 579.4 272.2 - 307.1 (billion taxes yen) Profit for the period attributable to owners368.8 160.0 - 208.8 of the parent

Dividend per share (yen) 56 30 -26

Honda's JPY appreciated against the USDAverage USD= 109 107 by 2 yen/ dollar Rate (yen)

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

Previous Revised DifferenceDifference FY20 FY21 FY21 compared compared forecastsforecaststo to results previous ?2020/8/ (2020/11/FY20 forecasts 5? 6) results

Motorcycles 19.340 14.800 14.800 -4.540 - Honda Group Unit Sales^ Automobiles^ *1 *3 4.790 4.500 4.600 -0.190 +0.100 (million units) Life Creation5.701 5.310 5.500 -0.201 +0.190

Motorcycles 12.426 9.715 10.145 -2.281 +0.430 Consolidated Unit Sales*^Automobiles^ 2 *3 3.318 2.685 2.715 -0.603 +0.030 (million units) Life Creation5.701 5.310 5.500 -0.201 +0.190

Sales revenue14,931.012,800.0 13,050.0 -1,881.0 +250.0 Operating 633.6 200.0 420.0 -213.6 +220.0 profit Share of profit of investments Financial 164.2 165.0 225.0 60.7 +60.0 accounted for Results/ using the equity method Forecasts Profit before789.9 365.0 660.0 -129.9 +295.0 (billion income taxes yen) Profit for the period attributable 455.7 165.0 390.0 -65.7 +225.0 to owners of the parent

Annual dividend per share 112 44 68 -44 +24 (yen)

Honda's JPY to appreciate Average USD= 109 106 106 against - the USD by Rate (yen) 3 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 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)

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SOURCE Honda Motor Co., Ltd.