Annual Report 2017 Year Ended March 31, 2017
Total Page:16
File Type:pdf, Size:1020Kb
Annual Report 2017 Year Ended March 31, 2017 Honda Motor Co., Ltd. Honda Motor Co., Ltd. Annual Report 2017 01 Corporate Profile Honda Motor Co., Ltd. operates under the basic principles of “Respect for the Individual” and “The Three Joys”—expressed as “The Joy of Buying”, “The Joy of Selling” and “The Joy of Creating”. “Respect for the Individual” reflects our desire to respect the unique character and ability of each individual person, trusting each other as equal partners in order to do our best in every situation. Based on this, “The Three Joys” express our belief and desire that each person working in or coming into contact with our company, directly or through our products, should share a sense of joy through that experience. In line with these basic principles, since its establishment in 1948, Honda has remained on the leading edge by creating new value and providing products of the highest quality at a reasonable price, for worldwide customer satisfaction. In addition, the Company has conducted its activities with a commitment to protecting the environment and enhancing safety in a mobile society. The Company has grown to become the world’s largest motorcycle manufacturer and one of the leading automakers. With a global network of 367* subsidiaries and 75* affiliates and joint ventures accounted for using the equity method, Honda develops, manufactures and markets a wide variety of products to earn the Company an outstanding reputation from customers worldwide. * As of March 31, 2017 Ridgeline On the Cover: CR-V (North America) The CR-V is America’s best-selling SUV over the past 20 years since its debut in 1997. The fifth generation CR-V features a first ever turbocharged engine—a more powerful and fuel-efficient 1.5-liter DOHC direct-injection engine. It is also available with a 2.4-liter DOHC direct-injection i-VTEC engine. The CR-V is also equipped with “Honda SENSING,” a suite of advanced safety and driver-assistive technologies resulting in outstanding value which reflects the development aim of establishing a new compact SUV benchmark. User Guide Icons Return to last Go to Move back to Move forward to This PDF has various features to make it easy to use page opened contents page previous page next page and to search for information. It also contains links to external web sites to allow you to refer to external Contents information easily. The Power of Review of 1 Dreams 2 Financial Highlights 3 To Our Shareholders 4 CFO Interview 5 Operations Click on these links to move to different sections of the report. Other Icons Show details Download data Link to external web site Honda Motor Co., Ltd. Annual Report 2017 02 Contents The consolidated financial statements of the Company in this Annual Report have been prepared in accordance with International Financial Reporting Standards (“IFRS”), as issued by the International Accounting Standards Board (“IASB”). Please refer to Form 20-F, a report which the Company files annually with the U.S. Securities and Exchange Commission (“U.S. SEC”), if more comprehensive information is required. Caution with Respect to Forward-Looking Statements This annual report 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 Honda’s actual results could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in Honda’s principal markets; foreign exchange rates between the Japanese yen and the U.S. dollar and other major currencies; and extensive environmental and other governmental regulations, as well as other factors detailed from time to time. Honda Motor Co., Ltd. Annual Report 2017 03 The Power of 1 Dreams The new Civic Type R, which will be launched in markets around the world, including Europe, Japan, and North America from the The Power of Dreams summer of 2017, was engineered to deliver the most rewarding drive in the hot hatch segment, both on road and on the race track. It recently set a new record lap time for front-wheel drive Dreams inspire us to create innovative products that enhance mobility and benefit society. cars at the Nurburgring Circuit*. Several factors contributed to this achievement. At its heart is the optimized and refined 2.0-liter To meet the particular needs of customers in different regions around the world, VTEC TURBO engine, which combined with new lower gear ratios we base our sales networks, research and development centers, and manufacturing in the six-speed manual transmission, further improve the car’s acceleration. In addition, the high-rigidity, light body and new facilities in each region. Furthermore, as a socially responsible corporate citizen, multi-link rear suspension provide significant benefits to steering response and cornering stability. The Civic Type R is produced at we strive to address important environmental and safety issues. Honda’s U.K. plant in Swindon. * Source Honda (As of April 2017) Civic Type R Honda Motor Co., Ltd. Annual Report 2017 04 2 Financial Highlights Financial Highlights Years ended March 31 Sales Revenue Operating Profit / Operating Margin Share of Profit of Investments Accounted for * In fiscal 2013, the above was named “Net Sales and Other Operating Revenue” and stated in * In fiscal 2013, the above was named “Operating Income” and stated in accordance with U.S. GAAP. Using the Equity Method accordance with U.S. GAAP. * In fiscal 2013, the above was named “Equity in Income of Affiliates” and stated in accordance with U.S. GAAP. Yen (billions) Yen (billions) (%) Yen (billions) 15,000 1,000 8.0 180 750 6.0 10,000 120 500 4.0 5,000 60 250 2.0 0 13 14 15 16 17 0 13 14 15 16 17 0.0 0 13 14 15 16 17 U.S. GAAP IFRS U.S. GAAP IFRS U.S. GAAP IFRS Operating Profit (left scale) Operating Margin (%) (right scale) 2017 Sales Revenue 2017 Operating Profit 2017 Share of Profit of Investments Accounted for Using the Equity Method 13,999.2 billion yen 840.7 billion yen Operating Margin 164.7 billion yen 6.0 % Profit for the Year Attributable to Owners of the Parent / Total Assets / Additions to Property, Plant and Equipment / Basic Earnings per Share Attributable to Owners of Equity Attributable to Owners of the Parent / Depreciation the Parent Equity Attributable to Owners of the Parent per Share * In fiscal 2013, the above were named “Capital Expenditures (Excluding Purchase of Operating * In fiscal 2013, the above were named “Net Income Attributable to Honda Motor Co., Ltd.” and * In fiscal 2013, the above were named “Total Honda Motor Co., Ltd. Shareholders’ Equity” and Lease Assets)” and “Depreciation (Excluding Property on Operating Leases),” and stated in “Basic Net Income Attributable to Honda Motor Co., Ltd. per Common Share,” and stated in “Total Honda Motor Co., Ltd. Shareholders’ Equity per Common Share,” and stated in accordance accordance with U.S. GAAP. accordance with U.S. GAAP. with U.S. GAAP. Yen (billions) (Yen) Yen (billions) (Yen) Yen (billions) 800 400 20,000 6,000 800 600 300 15,000 4,500 600 400 200 10,000 3,000 400 200 100 5,000 1,500 200 0 13 14 15 16 17 0 0 13 14 15 16 17 0 0 13 14 15 16 17 U.S. GAAP IFRS U.S. GAAP IFRS U.S. GAAP IFRS Profit for the Year Attributable to Owners of the Parent (left scale) Total Assets (left scale) Equity Attributable to Owners of the Parent (left scale) Additions to Property, Plant and Equipment Basic Earnings per Share Attributable to Owners of the Parent (right scale) Equity Attributable to Owners of the Parent per Share (right scale) Depreciation 2017 Profit for the Year Attributable to Owners of the Parent 2017 Total Assets 2017 Additions to Property, Plant and Equipment 616.5 billion yen 18,958.1 billion yen 588.3 billion yen Basic Earnings per Share Attributable to Owners Equity Attributable to Owners of the Parent Depreciation of the Parent 7,295.2 billion yen 484.1 billion yen 342.10 yen Equity Attributable to Owners of the Parent per Share 4,047.81 yen Honda Motor Co., Ltd. Annual Report 2017 05 3 To Our Shareholders into one of our global models. Moreover, sales of the all-new Civic, with its refined design and driving experience, have been strong everywhere. Sales of the all-new CR-V, which started in the U.S., are also off to a strong start. With various measures including the introduction of a hybrid version, we are going to further grow CR-V as a strong global model. Furthermore, the next-generation Accord will undergo a full model change this year starting from the U.S. market, with a Takahiro Hachigo further advanced design and driving experience. President and Representative Director In addition to these global models, our regional models, Chief Executive Officer another strength of Honda, have also been growing in each respective region. These highly acclaimed regional models include the Mobilio and BR-V in Asia; the Ridgeline and Odyssey in North America; the Crider, Avancier and UR-V in China and the N-BOX in Japan. Mutually complementary system for our global operations Concerning the advancement of our six-region global opera- tion structure, we are facilitating inter-regional coordination to evolve our models more efficiently to further expand the potential of our regional models.