Honda 2011 Annual Report Download - page 49

Capital Expenditures
Capital expenditures in fiscal 2011 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 ¥1,109.7
billion, up ¥236.0 billion from the previous year. Also, total capital
expenditures, excluding property on operating leases, for the year
amounted to ¥311.3 billion, down ¥18.3 billion from the previous
year. Spending by business segment is shown below.
Fiscal years ended March 31,
2010 2011 Increase (Decrease)
Yen (millions)
Motorcycle Business ¥ 38,332 ¥ 37,084 ¥ (1,248)
Automobile Business 267,257 260,149 (7,108)
Financial Services Business 544,425 798,584 254,159
Financial Services Business (Excluding Property on Operating Leases) 398 164 (234)
Power Product and Other Businesses 23,748 13,963 (9,785)
Total ¥873,762 ¥1,109,780 ¥236,018
Total (Excluding Property on Operating Leases) ¥329,735 ¥ 311,360 ¥ (18,375)
Note: Intangible assets are not included in the table above.
In the motorcycle business, we made capital expenditures of
¥37,084 million in the fiscal year ended March 31, 2011. 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
¥260,149 million in the fiscal year ended March 31, 2011. 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 auto plant of
Honda Motor De Argentina S.A., which is one of the Company’s
consolidated subsidiaries, completed construction of its facilities in
March 2011.
In the financial services business segment, capital expenditures
excluding property on operating leases amounted to ¥164 million in
the fiscal year ended March 31, 2011, while capital expenditures for
property on operating leases were ¥798,420 million. Capital
expenditures in power products and other businesses in the fiscal
year ended March 31, 2011, totaling ¥13,963 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 2011
We set out our original capital expenditure plans for the period from
the fiscal year ended March 31, 2011 during the preceding fiscal
year. We have subsequently modified these plans as follows:
The new auto plant in Yorii-machi Osato-gun, Saitama, Japan
plans to start operation in 2013.
Yachiyo Industry Co., Ltd., which is one of the Company’s
consolidated subsidiaries, had stopped building a new auto plant in
Yokkaichi City, Mie, Japan.
Management mainly considers economic trends of each region,
demand trends, the situation of competitors and our business
strategy, such as introduction plans of new models in determining
the future of projects.
The estimated amounts of capital expenditures for the fiscal year
ending March 31, 2012 are shown below.
Fiscal year ending
March 31, 2012
Yen (millions)
Motorcycle Business ¥ 65,300
Automobile Business 350,000
Financial Services Business 300
Power Product and Other Businesses 14,400
Total ¥430,000
Note: The estimated amount of capital expenditures for the 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
2007 2008 2009 2010 2011
0
Capital Expenditures and Depreciation
Years ended March 31
47