Honda 2010 Annual Report Download - page 45

Capital Expenditures
Capital expenditures in fiscal 2010 were applied to the introduction
of new models, as well as the improvement, streamlining and
modernization of production facilities, and improvement of sales and
R&D facilities.
Total capital expenditures for the year amounted to ¥873.7 billion,
down ¥393.4 billion from the previous year. Also, total capital
expenditures, excluding property on operating leases, for the year
amounted to ¥329.7 billion, down ¥269.3 billion from the previous
year. Spending by business segment is shown below.
Fiscal years ended March 31,
2009 2010 Increase (Decrease)
Yen (millions)
Motorcycle Business ¥ 90,401 ¥ 38,332 ¥ (52,069)
Automobile Business 490,760 267,257 (223,503)
Financial Services Business 669,178 544,425 (124,753)
Financial Services Business (Excluding Property on Operating Leases) 1,050 398 (652)
Power Product and Other Businesses 16,920 23,748 6,828
Total ¥1,267,259 ¥873,762 ¥(393,497)
Total (Excluding Property on Operating Leases) ¥ 599,131 ¥329,735 ¥(269,396)
Note: Intangible assets are not included in the table above.
In the motorcycle business, we made capital expenditures of
¥38,332 million in the fiscal year ended March 31, 2010. Funds were
allocated to the introduction of new models, as well as the
improvement, streamlining and modernization of production facilities,
and improvement of sales and R&D facilities.
In the automobile business, we made capital expenditures of
¥267,257 million in the fiscal year ended March 31, 2010. Funds
were allocated to the introduction of new models, as well as the
improvement, streamlining and modernization of production facilities,
and improvement of sales and R&D facilities. A new engine plant in
Ogawa-machi Hiki-gun, Saitama, Japan completed construction of
its facilities for the production of engines in September 2009.
In the financial services business segment, capital expenditures
excluding property on operating leases amounted to ¥398 million in
the fiscal year ended March 31, 2010, while capital expenditures for
property on operating leases were ¥544,027 million. Capital
expenditures in power products and other businesses in the fiscal
year ended March 31, 2010, totaling ¥23,748 million, were deployed
to upgrade, streamline and modernize manufacturing facilities for
power products, and to improve R&D facilities for power products.
Plans after Fiscal 2010
We set out our original capital expenditure plans for the period from
the fiscal year ended March 31, 2010 during the preceding fiscal
year. We have subsequently modified these plans as follows:
The planned timing of the start of operation in the latter half of
2009 on the new auto plant of Honda Motor de Argentina S.A.,
which is one of the Company’s consolidated subsidiaries, in Buenos
Aires, Argentina has changed to in the first half of 2011. The
investment amount is approximately ¥16,000 million.
Managements mainly consider economic trends of each region,
demand trends, situation of competitors and our business strategy,
such as introduction plans of new models, in determining the future
of these projects.
The estimated amounts of capital expenditures for fiscal year ending
March 31, 2011 are shown below.
Fiscal year ending
March 31, 2011
Yen (millions)
Motorcycle Business ¥ 43,900
Automobile Business 324,200
Financial Services Business 500
Power Product and Other Businesses 11,400
Total ¥380,000
Note: The estimated amount of capital expenditures for Financial Services Business in the
above table does not include property on operating leases.
Intangible assets are not included in the table above.
700
600
Yen (billions)
Capital Expenditures Depreciation
500
400
300
200
100
2006 2007 2008 2009 2010
0
Capital Expenditures and Depreciation
Years ended March 31
43