Honda 2013 Annual Report Download - page 25

Download and view the complete annual report

Please find page 25 of the 2013 Honda annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 68

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68

Review of Operations
Financial Services
Business
To support the sale of its products, Honda provides retail lending
and leasing to customers and wholesale financing to dealers through
our finance subsidiaries in Japan, the United States, Canada, the
United Kingdom, Germany, Brazil, Thailand and other countries.
Total amount of finance subsidiaries-receivables and prop-
erty on operating leases of finance subsidiaries increased
by ¥955.3 billion, or 19.4%, to ¥5,874.2 billion from the
previous fiscal year. Honda estimates that by applying
Japanese yen exchange rates of the previous fiscal year to
the current fiscal year, total amount of finance subsidiaries-
receivables and property on operating leases of finance
subsidiaries as of the end of the year would have
increased by approximately ¥281.0 billion, or 5.7%, com-
pared to the increase as reported of ¥955.3 billion, which
includes positive foreign currency translation effects.
Revenue from external customers in Financial services
business increased ¥32.3 billion, or 6.3%, to ¥548.5 billion
from the previous fiscal year, due mainly to an increase in
operating lease revenues and positive foreign currency
translation effects. Honda estimates that by applying
Japanese yen exchange rates of the previous fiscal year to
the current fiscal year, revenue for the year would have
increased by approximately ¥8.4 billion, or 1.6%, com-
pared to the increase as reported of ¥32.3 billion, which
includes positive foreign currency translation effects. Rev-
enue including intersegment sales increased ¥33.6 billion,
or 6.4%, to ¥560.2 billion from the previous fiscal year.
Operating costs and expenses increased ¥45.5 billion,
or 12.8%, to ¥402.0 billion from the previous fiscal year.
Cost of sales increased ¥42.9 billion, or 14.7%, to ¥336.2
billion from the previous fiscal year, due mainly to an
increase in costs related to lease residual values and neg-
ative foreign currency effect. Selling, general and adminis-
trative expenses increased ¥2.5 billion, or 4.0%, to ¥65.8
billion from the previous fiscal year.
Operating income decreased ¥11.8 billion, or 7.0%, to
¥158.1 billion from the previous fiscal year, due mainly to
an increase in costs related to lease residual values.
Finance Receivables
Property on Operating Leases
2,000
4,000
6,000
009 10 11 12 13
Yen (billions)
Yen (billions) 2009 2010 2011 2012 2013
Finance
Receivables ¥3,572.3 ¥3,461.5 ¥3,480.0 ¥3,446.1 ¥4,031.1
Property on
Operating Leases 1,287.8 1,308.1 1,357.6 1,472.7 1,843.1
Total ¥4,860.1 ¥4,769.6 ¥4,837.6 ¥4,918.8 ¥5,874.2
Finance Receivables / Property on Operating Leases
Yen (millions) 2012 2013 % change
Japan ¥ 28,926 ¥ 34,282 18.5%
North America 455,558 484,275 6.3
Europe 8,175 7,256 (11.2)
Asia 2,878 3,145 9.3
Other Regions 20,611 19,548 (5.2)
Total ¥516,148 ¥548,506 6.3%
Net Sales by Region
250
500
750
0
20.0
40.0
60.0
0.0
09 10 11 12 13
Yen (billions) (%)
Japan North America Europe
Asia Other Regions
Operating Margin
Honda Motor Co., Ltd. 23