TOKYO, May 14, 2021 /PRNewswire/ —
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 businessSales 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 businessSales 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 businessOperating 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
ended
Mar. 31, 2020
(3 months period)
4th quarter
ended
Mar 31, 2021
(3 months period)
Difference
Honda Group
Unit Sales*1
(million units)
Motorcycles
4.302
4.541
+0.239
Automobiles*3
0.981
1.121
+0.140
Life Creation
2.071
1.768
-0.303
Consolidated
Unit Sales*2
(million units)
Motorcycles
2.694
3.001
+0.307
Automobiles*3
0.777
0.718
-0.059
Life Creation
2.071
1.768
-0.303
Financial
Results
(billion yen)
Sales revenue
3,458.0
3,623.8
+165.7
Operating profit
-5.6
213.2
+218.8
Share of profit of investments accounted for using the equity method
14.4
68.1
+53.6
Profit before income taxes
3.7
255.3
+251.5
Profit for the period
attributable to owners of the
parent
-29.5
213.3
+242.8
Quarterly dividend per share (yen)
28
54
+26
Honda’s
Average Rate
(yen)
USD=
109
106
JPY appreciated
against the USD
by 3 yen/dollar
Consolidated Financial Results for the Fiscal Year Ended March 31, 2021(FY21)
FY20
results
Previous
FY21 forecasts
（2021/2/9）
FY21
Results (2021/5/14）
Difference
compared to
FY20 results
Difference
compared to previous forecasts
Honda Group
Unit Sales*1
(million units)
Motorcycles
19.340
15.000
15.132
-4.208
+0.132
Automobiles*3
4.790
4.500
4.546
-0.244
+0.046
Life Creation
5.701
5.500
5.623
-0.078
+0.123
Consolidated
Unit Sales*2
(million units)
Motorcycles
12.426
10.185
10.264
-2.162
+0.079
Automobiles*3
3.318
2.615
2.617
-0.701
+0.002
Life Creation
5.701
5.500
5.623
-0.078
+0.123
Financial
Results
(billion yen)
Sales revenue
14,931.0
12,950.0
13,170.5
-1,760.4
+220.5
Operating profit
633.6
520.0
660.2
+26.5
+140.2
Share of profit of investments accounted for using the equity method
164.2
235.0
272.7
+108.5
+37.7
Profit before income taxes
789.9
745.0
914.0
+124.1
+169.0
Profit for the year
attributable to owners of the
parent
455.7
465.0
657.4
+201.6
+192.4
Annual dividend per share (yen)
112
82
110
-2
+28
Honda’s
Average Rate
(yen)
USD=
109
105
106
JPY 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)
FY21
results
FY22
forecasts
（2021/5/14）
Difference
compared to
FY21 results
Honda Group
Unit Sales*1
(million units)
Motorcycles
15.132
18.000
+2.868
Automobiles*3
4.546
5.000
+0.454
Life Creation
5.623
5.900
+0.277
Consolidated
Unit Sales*2
(million units)
Motorcycles
10.264
11.860
+1.596
Automobiles*3
2.617
3.030
+0.413
Life Creation
5.623
5.900
+0.277
Financial
Results/
Forecasts
(billion yen)
Sales revenue
13,170.5
15,200.0
+2,029.4
Operating profit
660.2
660.0
-0.2
Share of profit of investments
accounted for using the equity method
272.7
220.0
-52.7
Profit before income taxes
914.0
870.0
-44.0
Profit for the year
attributable to owners of the
parent
657.4
590.0
-67.4
Annual dividend per share (yen)
110
110
―
Honda’s
Average Rate
(yen)
USD=
106
105
JPY to appreciate
against the USD
by1 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.
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SOURCE Honda Motor Co., Ltd.