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 FEBRUARY 2022

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):  ☐

 

 

 

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: February 25, 2022

 

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Interim Financial Statements

December 31, 2021

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Part I. Corporate Information

Section 1. Corporate Overview

1. History of Changes in Major Business Indices

 

Fiscal Year				97th for the nine months (three months) ended December 31, 2020				98th for the nine months (three months) ended December 31, 2021				Previous fiscal year (97th)
Accounting Period				From April 1, 2020 to December 31, 2020				From April 1, 2021 to December 31, 2021				From April 1, 2020 to March 31, 2021
Sales revenue		(Millions of yen)			9,546,713 (3,771,569	)			10,677,013 (3,688,785	)			13,170,519
Profit before income taxes		(Millions of yen)			658,707				845,238				914,053
Profit for the period (year) attributable to owners of the parent		(Millions of yen)			444,102 (284,051	)			582,169 (192,960	)			657,425
Comprehensive income for the period (year) attributable to owners of the parent		(Millions of yen)			394,202				918,110				1,214,757
Equity attributable to owners of the parent		(Millions of yen)			8,306,603				9,770,862				9,082,306
Total assets		(Millions of yen)			20,780,203				22,249,779				21,921,030
Basic earnings per share attributable to owners of the parent		(Yen)			257.21 (164.51	)			337.92 (112.42	)			380.75
Diluted earnings per share attributable to owners of the parent		(Yen)			257.21				337.92				380.75
Ratio of Honda Motor Co., Ltd. shareholders’ equity		(%)			40.0				43.9				41.4
Cash flows from operating activities		(Millions of yen)			826,192				947,804				1,072,379
Cash flows used in investing activities		(Millions of yen)			(663,676	)			(381,779	)			(796,881	)
Cash flows from (used in) financing activities		(Millions of yen)			81,511				(692,138	)			(283,980	)
Cash and cash equivalents at end of period (year)		(Millions of yen)			2,873,289				2,690,451				2,758,020

 

*1	The above indicators are based on the condensed consolidated interim financial statements and consolidated financial statements prepared in accordance with International Financial Reporting Standards (“IFRS”).

*2	As the Company has prepared the condensed consolidated interim financial statements, the History of Changes in Major Business Indices of the reporting entity is not provided.

*3	Sales revenue does not include consumption taxes.

2. Overview of Business

There have been no material changes to the business of the Company, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method for the nine months ended December 31, 2021. Honda of the U.K. Manufacturing Ltd. and Honda Turkiye A.S. ceased production of automobiles for the three months ended September 30, 2021.

In addition, changes in major consolidated subsidiaries for the nine months ended December 31, 2021 are as follows:

Motorcycle Business, Automobile Business, Life Creation and Other Businesses

American Honda Motor Co., Inc. integrated certain functions of Honda R&D Americas, Inc. for the three months ended June 30, 2021.

Automobile Business

Honda of America Mfg., Inc. merged with Honda Manufacturing of Alabama, LLC, Honda Manufacturing of Indiana, LLC, Honda Transmission Mfg. of America, Inc., Honda R&D Americas, Inc. and three other companies and changed its name to “Honda Development and Manufacturing of America, LLC” for the three months ended June 30, 2021.

Section 2. Business

1. Risk Factors

There were no new material matters to the risk factors for the nine months ended December 31, 2021.

In addition, there were no material changes to the risk factors described in the annual securities report for the previous fiscal year for the nine months ended December 31, 2021.

2. Management’s Analysis of Financial Position, Results of Operations and Cash Flows

(1) Financial Results

While the global economy which had slowed down due to the spread of coronavirus disease 2019 (COVID-19) has continued to be on a recovery track, it has still continued to affect Honda’s consolidated financial results for the nine months ended December 31, 2021.

Resulting from travel restriction measures in certain countries or regions, the production activities of some of Honda’s production bases were also affected mainly due to restrictions on employees’ commute to the workplaces and delays in the supply of parts within the supply chain. Some dealers were obliged to suspend business, shorten business hours, or reduce services such as inspections and repairs. However, there is no significant impact on Honda’s consolidated financial results for the nine months ended December 31, 2021.

Honda’s consolidated sales revenue for the nine months ended December 31, 2021 increased by 11.8%, to ¥10,677.0 billion from the same period last year, due mainly to increased sales revenue in Motorcycle business and Financial services business operations as well as positive foreign currency translation effects. Operating profit increased by 50.3%, to ¥671.6 billion from the same period last year, due mainly to an increase in profit attributable to increased sales revenue and model mix as well as decreased selling, general and administrative expenses. Profit before income taxes increased by 28.3%, to ¥845.2 billion from the same period last year. Profit for the period attributable to owners of the parent increased by 31.1%, to ¥582.1 billion from the same period last year.

Business Segments

Motorcycle Business

For the nine months ended December 31, 2020 and 2021

 

		Units (thousands)
		Honda Group Unit Sales*																Consolidated Unit Sales*
		Nine months ended Dec. 31, 2020				Nine months ended Dec. 31, 2021												Nine months ended Dec. 31, 2020				Nine months ended Dec. 31, 2021
										Change				%												Change				%
Motorcycle Business			10,591				12,775				2,184				20.6				7,263				7,964				701				9.7
Japan			155				180				25				16.1				155				180				25				16.1
North America			240				332				92				38.3				240				332				92				38.3
Europe			159				240				81				50.9				159				240				81				50.9
Asia			9,257				10,902				1,645				17.8				5,929				6,091				162				2.7
Other Regions			780				1,121				341				43.7				780				1,121				341				43.7

 

*

Honda Group Unit Sales is the total unit sales of completed motorcycle, ATV and side-by-side products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries.

Sales revenue from external customers increased by 27.3%, to ¥1,602.0 billion from the same period last year, due mainly to increased consolidated unit sales. Operating profit increased by 52.5%, to ¥232.3 billion from the same period last year, due mainly to an increase in profit attributable to increased sales volume and model mix.

Automobile Business

For the nine months ended December 31, 2020 and 2021

 

		Units (thousands)
		Honda Group Unit Sales*																Consolidated Unit Sales*
		Nine months ended Dec. 31, 2020				Nine months ended Dec. 31, 2021												Nine months ended Dec. 31, 2020				Nine months ended Dec. 31, 2021
										Change				%												Change				%
Automobile Business			3,425				3,000				(425	)			(12.4	)			1,899				1,792				(107	)			(5.6	)
Japan			418				385				(33	)			(7.9	)			366				335				(31	)			(8.5	)
North America			1,098				978				(120	)			(10.9	)			1,098				978				(120	)			(10.9	)
Europe			77				76				(1	)			(1.3	)			77				76				(1	)			(1.3	)
Asia			1,741				1,465				(276	)			(15.9	)			267				307				40				15.0
Other Regions			91				96				5				5.5				91				96				5				5.5

 

*

Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. Certain sales of automobiles that are financed with residual value type auto loans and others by our Japanese finance subsidiaries and provided 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.

Sales revenue from external customers increased by 7.4%, to ¥6,668.6 billion from the same period last year, due mainly to positive foreign currency translation effects, which was partially offset by decreased consolidated unit sales. Operating profit increased by 258.3%, to ¥188.5 billion from the same period last year, due mainly to decreased selling, general and administrative expenses.

Financial Services Business

Sales revenue from external customers increased by 14.1%, to ¥2,114.3 billion from the same period last year, due mainly to an increase in revenues on disposition of lease vehicles and operating lease revenues. Operating profit increased by 3.0%, to ¥258.1 billion from the same period last year, due mainly to an increase in profit attributable to increased sales revenue.

Life Creation and Other Businesses

For the nine months ended December 31, 2020 and 2021

 

		Units (thousands)
		Honda Group Unit Sales / Consolidated Unit Sales*
		Nine months ended Dec. 31, 2020				Nine months ended Dec. 31, 2021
										Change				%
Life Creation Business			3,855				4,500				645				16.7
Japan			233				266				33				14.2
North America			1,815				2,092				277				15.3
Europe			567				762				195				34.4
Asia			1,012				1,073				61				6.0
Other Regions			228				307				79				34.6

 

*

Honda Group Unit Sales is the total unit sales of completed power products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed power products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed power products of Honda and its consolidated subsidiaries. In Life creation business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales since no affiliate and joint venture accounted for using the equity method were involved in the sale of Honda power products.

Sales revenue from external customers increased by 28.5%, to ¥291.9 billion from the same period last year, due mainly to increased consolidated unit sales in Life creation business. Operating loss was ¥7.4 billion, an improvement of ¥1.1 billion from the same period last year, due mainly to decreased operating costs in Other businesses. In addition, operating loss of aircraft and aircraft engines included in the Life creation and other businesses was ¥23.6 billion, an improvement of ¥0.8 billion from the same period last year.

(2) Cash Flows

Consolidated cash and cash equivalents on December 31, 2021 decreased by ¥67.5 billion from March 31, 2021, to ¥2,690.4 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the same period last year, are as follows:

Cash flows from operating activities

Net cash provided by operating activities amounted to ¥947.8 billion of cash inflows. Cash inflows from operating activities increased by ¥121.6 billion from the same period last year, due mainly to increased cash received from customers, which was partially offset by increased payments for parts and raw materials.

Cash flows from investing activities

Net cash used in investing activities amounted to ¥381.7 billion of cash outflows. Cash outflows from investing activities decreased by ¥281.8 billion from the same period last year, due mainly to decreased payments for acquisitions of investments accounted for using the equity method as well as increased proceeds from sales and redemptions of other financial assets.

Cash flows from financing activities

Net cash used in financing activities amounted to ¥692.1 billion of cash outflows. Cash outflows from financing activities increased by ¥773.6 billion from the same period last year, due mainly to decreased proceeds from financing liabilities and increased dividends paid.

(3) Research and Development Activities

R&D expenditures at Honda and its consolidated subsidiaries and R&D expenses recognized in the Condensed Consolidated Interim Statements of Income for the nine months ended December 31, 2021, are ¥568.7 billion and ¥563.3 billion, respectively.

The changes in research and development activities by Honda and its subsidiaries for the nine months ended December 31, 2021 are as follows:

American Honda Motor Co., Inc., our consolidated subsidiaries in the United States, made organizational changes to its automobile manufacturing-related companies and automobile development function in the United States on April 1, 2021. As a result of these changes, Honda R&D Americas, Inc. and Honda Engineering North America, Inc. were merged into Honda Development and Manufacturing of America, LLC. Additionally, in the motorcycle operations, Honda of South Carolina Mfg., Inc., which is responsible for manufacturing powersports products (PSPs), including ATV and side-by-side products, and the PSPs development function of Honda R&D Americas, Inc. were merged into the PSPs division of American Honda Motor Co., Inc. These organizational changes will advance integrated operations in all areas of sales, manufacturing, development and procurement, and strengthen our business structure in North America to respond more quickly to the needs of our customers and the market in light of the rapidly changing market environment.

(4) Unit Production and Sales

Unit production in Honda and its subsidiaries for the nine months ended December 31, 2021 in Life creation business increased significantly from the same period last year. The increased unit production in Life creation business was due to suspended or reduced production in Honda’s production bases in Japan and overseas resulted from the spread of COVID-19 in the same period last year.

3. Material Contracts

Honda and its consolidated subsidiaries have not executed any agreements that are material for operations for the three months ended December 31, 2021.

Section 3. Information on the Company

1. Share Information

(1) Total Number of Shares and Issued Shares

(i) Total number of shares

 

Class		Total number of authorized shares (shares)
Common stock			7,086,000,000
Total			7,086,000,000

(ii) Issued shares

 

Class		Number of issued shares at the end of FY2022 3rd Quarter (shares) (December 31, 2021)				Number of issued shares as of the date of this report (shares) (February 10, 2022)				Financial instruments exchange on which the shares are listed or authorized  financial instruments dealers association with which shares are registered		Description
Common stock			1,811,428,430				1,811,428,430			Securities exchanges in Tokyo, New York		Share units: 100 shares
Total			1,811,428,430				1,811,428,430			—		—

 

*	The Company is listed on the first section of the Tokyo Stock Exchange and on the New York Stock Exchange under ADRs (American Depositary Receipts).

(2) Status of Stock Options

(i) Details of stock option plan

Not applicable.

(ii) Status of other stock options, etc.

Not applicable.

(3) Status of Exercises, etc. of Moving Strike Convertible Bonds, etc.

Not applicable.

(4) Changes in Total Number of Issued Shares, Stated Capital, etc.

 

Date		Increase or decrease in total number of issued shares (1,000 shares)				Balance of total number of issued shares (1,000 shares)				Increase or decrease in stated capital in value (millions of yen)				Balance of stated capital (millions of yen)				Increase or decrease in capital reserve in value (millions of yen)				Balance of capital reserve (millions of yen)
December 31, 2021			—				1,811,428				—				86,067				—				170,313

(5) Status of Major Shareholders

As this quarter is the third quarter, there is nothing to report.

(6) Status of Voting Rights

Since Honda is unable to confirm the details entered in the shareholders register, the status of voting rights as of the end of the quarter ended December 31, 2021 is provided based on the shareholders register as of the immediately preceding reference date (September 30, 2021).

(i) Issued shares

As of September 30, 2021

 

Category		Number of shares (shares)						Number of voting rights (votes)				Description
Non-voting shares					—				—				—
Shares with restricted voting rights (treasury stock, etc.)					—				—				—
Shares with restricted voting rights (other)					—				—				—
Shares with voting rights (treasury stock, etc.)		(Treasury stock) Common stock			81,788,800				—				Share units: 100 shares
		(Cross holding shares) Common stock			13,365,400				—				Same as above
Shares with voting rights (other)		Common stock			1,715,915,300				17,159,153				Same as above
Shares less than one unit		Common stock			358,930				—				—
Total number of issued shares					1,811,428,430				—				—
Voting rights of all shareholders					—				17,159,153				—

 

*1	The common stock in the “Shares with voting rights (other)” includes 1,080,300 shares (10,803 voting rights) of the Company’s stock held by the “BIP (Board Incentive Plan) trust” (a “BIP Trust”) and 2,500 shares (25 voting rights) held in the name of Japan Securities Depository Center, Inc.

*2	The common stock in the “Shares less than one unit” includes 78 shares of treasury stock held by the Company and 38 shares of the Company’s stock held by the BIP Trust.

(ii) Treasury stock, etc.

As of September 30, 2021

 

Name of shareholder		Address of shareholder		Number of shares held in own name (shares)				Number of shares held in others’ names (shares)				Total number of shares held (shares)				Shareholding ratio (%)
Honda Motor Co., Ltd.		1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo			81,788,800				—				81,788,800				4.52
Hitachi Astemo, Ltd.		2520 Takaba, Hitachinaka-shi, Ibaraki			7,506,400				—				7,506,400				0.41
Musashi Seimitsu Industry Co., Ltd.		39-5 Daizen, Ueta-cho, Toyohashi-shi, Aichi			799,300				626,400				1,425,700				0.08
Yamada Manufacturing Co., Ltd.		2757, Hirosawa-cho 1-chome, Kiryu-shi, Gunma			1,200,000				102,900				1,302,900				0.07
STEEL CENTER CO., LTD.		6-2, Uchi-Kanda 3-chome, Chiyoda-ku, Tokyo			660,000				626,400				1,286,400				0.07
G-TEKT CORPORATION		11-20, Sakuragi-cho 1-chome, Omiya-ku, Saitama-shi, Saitama			478,000				631,600				1,109,600				0.06
AIKITEC Co., Ltd.		1-1, Sakaehigashi, Morioka, Higashiura-cho, Chita-gun, Aichi			421,600				131,900				553,500				0.03
YANAGAWA SEIKI CO., LTD.		16-3, Miyanishi-cho 1-chome, Fuchu-shi, Tokyo			131,700				35,900				167,600				0.01
Honda Cars HAKATA		391-1 Kawasaki, Kawasaki-machi, Tagawa-gun, Fukuoka			12,300				—				12,300				0.00
Sogo Jimu Service Co., Ltd.		1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo			1,000				—				1,000				0.00
Total		—			92,999,100				2,155,100				95,154,200				5.25

 

*1

The shares included in “Number of shares held in others’ names” of Musashi Seimitsu Industry Co., Ltd. and 5 other companies represent those held by a corporate shareholding association which name is “Honda Torihikisaki Kigyo Mochikabukai” and the address is “1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo”.

*2	The number of shares held in own name and number of shares held in others’ names of each company are rounded down to the nearest 100 shares.

2. Directors and Senior Management

The changes in Directors and Senior Management from the date of the filing of the annual securities report for the previous fiscal year until the fiscal third quarter ended December 31, 2021 are as follows.

(1) Executive Officers (who are not concurrently the members of the Board of Directors)

(i) Newly appointed as Managing Executive Officer

<As of October 1, 2021>

Name (Date of birth)		Current Positions and Biographies		Term				Number of Shares Owned (1,000 shares)
Managing Executive Officer
Shinji Aoyama		Joined Honda Motor Co., Ltd. in April 1986			*1				35
(December 25, 1963)		Operating Officer, appointed in April 2012
		Chief Officer for Motorcycle Operations, appointed in April 2013
		Operating Officer and Director, appointed in June 2013
		Chief Officer for Regional Operations (Asia & Oceania), appointed in April 2017
		President and Director of Asian Honda Motor Co., Ltd., appointed in April 2017
		Operating Officer of the Company (resigned from position as Director), appointed in June 2017
		Managing Officer, appointed in April 2018
		Vice Chief Officer for Regional Operations (North America), appointed in April 2018
		Senior Executive Vice President, Chief Operating Officer and Director of Honda North America, Inc., appointed in April 2018
		Senior Executive Vice President, Chief Operating Officer and Director of American Honda Motor Co., Inc., appointed in April 2018
		President, Chief Operating Officer and Director of Honda North America, Inc., appointed in November 2018
		President, Chief Operating Officer and Director of American Honda Motor Co., Inc., appointed in November 2018
		Chief Officer for Regional Operations (North America) of the Company, appointed in April 2019
		President, Chief Executive Officer and Director of Honda North America, Inc., appointed in April 2019
		President, Chief Executive Officer and Director of American Honda Motor Co., Inc., appointed in April 2019
		In Charge of Electrification of the Company, appointed in July 2021 (presently held)
		Managing Executive Officer, appointed in October 2021 (presently held)

 

*1	The term of office of an Executive Officer is from the assumption of office until at the close of the first Board of Director’s meeting held after the ordinary general meeting of shareholders of the fiscal year ending March 31, 2022.

(ii) Resigned from Managing Executive Officer

<As of October 1, 2021>

Name		Previous Positions
Noriya Kaihara		Managing Executive Officer
		Chief Officer for Customer First Operations
		Risk Management Officer

(iii) Changes

<As of October 1, 2021>

Name		Previous Positions		New Positions
Noriaki Abe		Managing Executive Officer		Managing Executive Officer
		Chief Officer for Regional Operations (Japan)		Chief Officer for Regional Operations (Japan)
		Chief Officer for Traffic Safety Promotion Operations		Chief Officer for Traffic Safety Promotion Operations
				Risk Management Officer

(2) Number of Directors and Senior Management by gender and female ratio after changes

13 males 2 females (female ratio of 13%).

Section 4. Financial Information

1. Basis of preparation of the condensed consolidated interim financial statements

The condensed consolidated interim financial statements of the Company have been prepared in accordance with IAS 34 Interim Financial Reporting (“IAS 34”) by applying the provisions of Article 93 of the Regulations on the Terminology, Forms, and Preparation Methods of Quarterly Consolidated Financial Statements (Cabinet Office Order No. 64 of 2007, “Regulations on Quarterly Consolidated Financial Statements”), since the Company meets the requirements of a specified company complying with designated international accounting standards as set forth in Article 1-2 of the Regulations.

1.	Condensed Consolidated Interim Financial Statements

 

(1)	Condensed Consolidated Interim Statements of Financial Position

 

						Yen (millions)
Assets		Note				March 31,     2021				December 31, 2021
						unaudited				unaudited
Current assets:
Cash and cash equivalents						¥	2,758,020			¥	2,690,451
Trade receivables							801,814				716,296
Receivables from financial services							1,794,654				1,613,208
Other financial assets							295,307				407,358
Inventories							1,545,600				1,799,424
Other current assets							383,696				368,076
Total current assets							7,579,091				7,594,813
Non-current assets:
Investments accounted for using the equity method							891,002				902,008
Receivables from financial services							3,619,896				3,674,233
Other financial assets							628,533				765,484
Equipment on operating leases			6				4,919,916				5,075,682
Property, plant and equipment			7				3,021,514				2,971,461
Intangible assets							818,763				822,570
Deferred tax assets							99,552				100,540
Other non-current assets							342,763				342,988
Total non-current assets							14,341,939				14,654,966
Total assets						¥	21,921,030			¥	22,249,779
						Yen (millions)
Liabilities and Equity		Note				March 31,     2021				December 31, 2021
						unaudited				unaudited
Current liabilities:
Trade payables						¥	1,088,061			¥	1,033,941
Financing liabilities							3,005,624				3,103,481
Accrued expenses							415,106				297,558
Other financial liabilities							182,145				149,109
Income taxes payable							47,793				55,632
Provisions			8				362,151				262,373
Other current liabilities							614,577				616,044
Total current liabilities							5,715,457				5,518,138
Non-current liabilities:
Financing liabilities							4,715,361				4,486,260
Other financial liabilities							280,809				279,399
Retirement benefit liabilities							358,532				362,516
Provisions			8				278,890				252,876
Deferred tax liabilities							842,001				942,801
Other non-current liabilities							357,141				371,472
Total non-current liabilities							6,832,734				6,695,324
Total liabilities							12,548,191				12,213,462
Equity:
Common stock							86,067				86,067
Capital surplus							172,049				185,554
Treasury stock							(273,786	)			(328,443	)
Retained earnings							8,901,266				9,294,994
Other components of equity							196,710				532,690
Equity attributable to owners of the parent							9,082,306				9,770,862
Non-controlling interests							290,533				265,455
Total equity							9,372,839				10,036,317
Total liabilities and equity						¥	21,921,030			¥	22,249,779

See accompanying notes to condensed consolidated interim financial statements.

(2)	Condensed Consolidated Interim Statements of Income and Condensed Consolidated Interim Statements of Comprehensive Income

For the nine months ended December 31, 2020 and 2021

Condensed Consolidated Interim Statements of Income

 

				Yen (millions)
		Note		For the nine months ended December 31, 2020				For the nine months ended December 31, 2021
				unaudited				unaudited
Sales revenue		9		¥	9,546,713			¥	10,677,013
Operating costs and expenses:
Cost of sales					(7,594,521	)			(8,486,750	)
Selling, general and administrative					(1,004,211	)			(955,247	)
Research and development					(500,981	)			(563,371	)
Total operating costs and expenses					(9,099,713	)			(10,005,368	)
Operating profit					447,000				671,645
Share of profit of investments accounted for using the equity method		5			204,570				157,034
Finance income and finance costs:
Interest income					13,572				18,737
Interest expense					(8,563	)			(9,669	)
Other, net					2,128				7,491
Total finance income and finance costs					7,137				16,559
Profit before income taxes					658,707				845,238
Income tax expense					(186,809	)			(229,035	)
Profit for the period				¥	471,898			¥	616,203
Profit for the period attributable to:
Owners of the parent					444,102				582,169
Non-controlling interests					27,796				34,034
				Yen
				For the nine months ended December 31, 2020				For the nine months ended December 31, 2021
Earnings per share attributable to owners of the parent
Basic and diluted		12		¥	257.21			¥	337.92

See accompanying notes to condensed consolidated interim financial statements.

Condensed Consolidated Interim Statements of Comprehensive Income

 

				Yen (millions)
		Note		For the nine months ended December 31, 2020				For the nine months ended December 31, 2021
				unaudited				unaudited
Profit for the period				¥	471,898			¥	616,203
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					64,000				78,760
Share of other comprehensive income of investments accounted for using the equity method					613				113
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					127				(97	)
Exchange differences on translating foreign operations					(114,008	)			219,152
Share of other comprehensive income of investments accounted for using the equity method					5,772				43,385
Total other comprehensive income, net of tax					(43,496	)			341,313
Comprehensive income for the period				¥	428,402			¥	957,516
Comprehensive income for the period attributable to:
Owners of the parent					394,202				918,110
Non-controlling interests					34,200				39,406

See accompanying notes to condensed consolidated interim financial statements.

For the three months ended December 31, 2020 and 2021

Condensed Consolidated Interim Statements of Income

 

				Yen (millions)
		Note		For the three months ended December 31, 2020				For the three months ended December 31, 2021
				unaudited				unaudited
Sales revenue		9		¥	3,771,569			¥	3,688,785
Operating costs and expenses:
Cost of sales					(2,940,964	)			(2,924,975	)
Selling, general and administrative					(381,019	)			(329,644	)
Research and development					(171,851	)			(204,717	)
Total operating costs and expenses					(3,493,834	)			(3,459,336	)
Operating profit					277,735				229,449
Share of profit of investments accounted for using the equity method					102,274				49,788
Finance income and finance costs:
Interest income					4,695				7,657
Interest expense					(2,014	)			(3,241	)
Other, net					3,733				1,189
Total finance income and finance costs					6,414				5,605
Profit before income taxes					386,423				284,842
Income tax expense					(87,094	)			(77,240	)
Profit for the period				¥	299,329			¥	207,602
Profit for the period attributable to:
Owners of the parent					284,051				192,960
Non-controlling interests					15,278				14,642
				Yen
				For the three months ended December 31, 2020				For the three months ended December 31, 2021
Earnings per share attributable to owners of the parent
Basic and diluted		12		¥	164.51			¥	112.42

See accompanying notes to condensed consolidated interim financial statements.

Condensed Consolidated Interim Statements of Comprehensive Income

 

						Yen (millions)
		Note				For the three months ended December 31, 2020				For the three months ended December 31, 2021
						unaudited				unaudited
Profit for the period						¥	299,329			¥	207,602
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							45,754				20,742
Share of other comprehensive income of investments accounted for using the equity method							1,040				(1,207	)
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							13				(79	)
Exchange differences on translating foreign operations							(36,418	)			182,103
Share of other comprehensive income of investments accounted for using the equity method							5,297				16,709
Total other comprehensive income, net of tax							15,686				218,268
Comprehensive income for the period						¥	315,015			¥	425,870
Comprehensive income for the period attributable to:
Owners of the parent							296,866				403,390
Non-controlling interests							18,149				22,480

See accompanying notes to condensed consolidated interim financial statements.

(3)	Condensed Consolidated Interim Statements of Changes in Equity

For the nine months ended December 31, 2020

 

						Yen (millions)
						Equity attributable to owners of the parent
		Note				Common stock				Capital surplus				Treasury stock				Retained earnings				Other components of equity				Total				Non-controlling interests				Total equity
Balance as of April 1, 2020 (unaudited)						¥	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 for the period																			444,102								444,102				27,796				471,898
Other comprehensive income, net of tax																							(49,900	)			(49,900	)			6,404				(43,496	)
Total comprehensive income for the period																			444,102				(49,900	)			394,202				34,200				428,402
Reclassification to retained earnings																			353				(353	)			—								—
Transactions with owners and other
Dividends paid			13																(100,181	)							(100,181	)			(40,766	)			(140,947	)
Purchases of treasury stock															(4	)											(4	)							(4	)
Disposal of treasury stock															124												124								124
Share-based payment transactions											203																203								203
Equity transactions and others																															2,251				2,251
Total transactions with owners and other											203				120				(100,181	)							(99,858	)			(38,515	)			(138,373	)
Balance as of December 31, 2020 (unaudited)						¥	86,067			¥	172,026			¥	(273,820	)		¥	8,487,222			¥	(164,892	)		¥	8,306,603			¥	269,449			¥	8,576,052

For the nine months ended December 31, 2021

 

						Yen (millions)
						Equity attributable to owners of the parent
		Note				Common stock				Capital surplus				Treasury stock				Retained earnings				Other components of equity				Total				Non-controlling interests				Total equity
Balance as of April 1, 2021 (unaudited)						¥	86,067			¥	172,049			¥	(273,786	)		¥	8,901,266			¥	196,710			¥	9,082,306			¥	290,533			¥	9,372,839
Comprehensive income for the period
Profit for the period																			582,169								582,169				34,034				616,203
Other comprehensive income, net of tax																							335,941				335,941				5,372				341,313
Total comprehensive income for the period																			582,169				335,941				918,110				39,406				957,516
Reclassification to retained earnings																			(39	)			39				—								—
Transactions with owners and other
Dividends paid			13																(188,402	)							(188,402	)			(43,148	)			(231,550	)
Purchases of treasury stock															(62,756	)											(62,756	)							(62,756	)
Disposal of treasury stock															442												442								442
Share-based payment transactions											(174	)															(174	)							(174	)
Equity transactions and others											13,679				7,657												21,336				(21,336	)			—
Total transactions with owners and other											13,505				(54,657	)			(188,402	)							(229,554	)			(64,484	)			(294,038	)
Balance as of December 31, 2021 (unaudited)						¥	86,067			¥	185,554			¥	(328,443	)		¥	9,294,994			¥	532,690			¥	9,770,862			¥	265,455			¥	10,036,317

See accompanying notes to condensed consolidated interim financial statements.

(4)	Condensed Consolidated Interim Statements of Cash Flows

For the nine months ended December 31, 2020 and 2021

 

						Yen (millions)
		Note				For the nine months ended December 31, 2020				For the nine months ended December 31, 2021
						unaudited				unaudited
Cash flows from operating activities:
Profit before income taxes						¥	658,707			¥	845,238
Depreciation, amortization and impairment losses excluding equipment on operating leases							444,545				457,989
Share of profit of investments accounted for using the equity method							(204,570	)			(157,034	)
Finance income and finance costs, net							52,741				(42,769	)
Interest income and interest costs from financial services, net							(99,425	)			(119,818	)
Changes in assets and liabilities
Trade receivables							6,927				100,704
Inventories							88,067				(200,804	)
Trade payables							78,928				(58,880	)
Accrued expenses							(72,394	)			(136,753	)
Provisions and retirement benefit liabilities							86,077				(131,115	)
Receivables from financial services							(11,553	)			321,333
Equipment on operating leases							(118,989	)			620
Other assets and liabilities							(151,391	)			(35,454	)
Other, net							(608	)			(7,053	)
Dividends received							119,642				110,049
Interest received							177,097				179,173
Interest paid							(83,502	)			(69,296	)
Income taxes paid, net of refunds							(144,107	)			(108,326	)
Net cash provided by operating activities							826,192				947,804
Cash flows from investing activities:
Payments for additions to property, plant and equipment							(227,151	)			(198,762	)
Payments for additions to and internally developed intangible assets							(165,830	)			(126,575	)
Proceeds from sales of property, plant and equipment and intangible assets							4,680				16,057
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							(110,747	)			—
Proceeds from sales of investments accounted for using the equity method							10,376				—
Payments for acquisitions of other financial assets							(311,873	)			(409,524	)
Proceeds from sales and redemptions of other financial assets							134,639				337,025
Net cash used in investing activities							(663,676	)			(381,779	)
Cash flows from financing activities:
Proceeds from short-term financing liabilities							6,992,681				5,863,983
Repayments of short-term financing liabilities							(6,781,179	)			(6,106,635	)
Proceeds from long-term financing liabilities							1,356,619				1,229,804
Repayments of long-term financing liabilities							(1,304,276	)			(1,328,446	)
Dividends paid to owners of the parent							(100,181	)			(188,402	)
Dividends paid to non-controlling interests							(34,134	)			(41,722	)
Purchases and sales of treasury stock, net							120				(62,314	)
Repayments of lease liabilities							(47,584	)			(58,406	)
Other, net							(555	)			—
Net cash provided by (used in) financing activities							81,511				(692,138	)
Effect of exchange rate changes on cash and cash equivalents							(43,091	)			58,544
Net change in cash and cash equivalents							200,936				(67,569	)
Cash and cash equivalents at beginning of year							2,672,353				2,758,020
Cash and cash equivalents at end of period						¥	2,873,289			¥	2,690,451

See accompanying notes to condensed consolidated interim financial statements.