Honda 2014 Annual Report Download - page 33

Net Income
Net income increased by ¥216.1 billion, or 55.0%, to ¥608.7 billion from the
previous fiscal year.
Net Income attributable to Noncontrolling Interests
Net income attributable to noncontrolling interests increased by ¥9.1 billion, or
35.9%, to ¥34.6 billion from the previous fiscal year.
Net Income attributable to Honda Motor Co., Ltd.
Net income attributable to Honda Motor Co., Ltd. increased by ¥206.9 billion, or
56.4%, to ¥574.1 billion from the previous fiscal year.
Business Segments
Motorcycle Business
Honda’s consolidated unit sales of motorcycles and all-terrain vehicles (ATVs)
totaled 10,343 thousand units, increased by 8.8% from the previous fiscal year,
due mainly to an increase in consolidated unit sales in Asia.
Revenue from external customers increased by ¥324.0 billion, or 24.2%, to
¥1,663.6 billion from the previous fiscal year, due mainly to increased consolidated
unit sales and positive foreign currency translation effects. The impact of price
changes was immaterial. Honda estimates that by applying Japanese yen
exchange rates of the previous fiscal year to the current fiscal year, net sales for
the year would have increased by approximately ¥124.9 billion, or 9.3%, com-
pared to the increase as reported of ¥324.0 billion, which includes positive foreign
currency translation effects.
Operating costs and expenses increased by ¥268.7 billion, or 21.9%, to
¥1,498.0 billion from the previous fiscal year. Cost of sales increased by ¥218.5
billion, or 22.7%, to ¥1,181.5 billion, due mainly to an increase in costs
attributable to increased consolidated unit sales and negative foreign currency
effects. Selling, general and administrative expenses increased by ¥43.5 billion, or
21.8%, to ¥243.3 billion, due mainly to an increase in selling expenses attributable
to increased consolidated unit sales and negative foreign currency effects. R&D
expenses increased by ¥6.6 billion, or 10.0%, to ¥73.0 billion.
Operating income increased by ¥55.3 billion, or 50.2%, to ¥165.6 billion from
the previous fiscal year, due mainly to an increase in income attributable to
increased net sales and positive foreign currency effects, which was partially
offset by increased selling, general and administrative expenses and increased
R&D expenses.
Automobile Business
Honda’s consolidated unit sales of automobiles totaled 3,560 thousand units,
increased by 4.5% from the previous fiscal year, due mainly to an increase in
consolidated unit sales in Japan and North America.
Revenue from external customers increased by ¥1,467.1 billion, or 19.0%, to
¥9,176.3 billion from the previous fiscal year, due mainly to increased consolidated
unit sales and positive foreign currency translation effects. The impact of price
changes was immaterial. Honda estimates that by applying Japanese yen
exchange rates of the previous fiscal year to the current fiscal year, net sales for
the year would have increased by approximately ¥304.4 billion, or 3.9%, com-
pared to the increase as reported of ¥1,467.1 billion, which includes positive for-
eign currency translation effects. Revenue including intersegment sales increased
by ¥1,471.3 billion, or 19.0%, to ¥9,194.9 billion from the previous fiscal year.
Operating costs and expenses increased by ¥1,353.6 billion, or 18.2%, to
¥8,791.2 billion from the previous fiscal year. Cost of sales increased by ¥1,086.8
billion, or 18.5%, to ¥6,955.1 billion, due mainly to an increase in costs attributable
to increased consolidated unit sales and negative foreign currency effects. Selling,
general and administrative expenses increased by ¥199.3 billion, or 18.0%, to
¥1,304.6 billion, due mainly to increased product warranty expenses, an increase
in selling expenses attributable to increased consolidated unit sales and negative
foreign currency effects. R&D expenses increased by ¥67.3 billion, or 14.5%, to
¥531.4 billion, due mainly to improving safety and environmental technologies and
enhancing of the attractiveness of the products.
Operating income increased by ¥117.7 billion, or 41.2%, to ¥403.7 billion from
the previous fiscal year, due mainly to continuing cost reduction and positive for-
eign currency effects, which was partially offset by increased selling, general and
administrative expenses and increased R&D expenses.
Power Product and Other Businesses
Honda’s consolidated unit sales of power products totaled 6,036 thousand units,
decreased by 0.6% from the previous fiscal year, due mainly to a decrease in
consolidated unit sales in Asia and Other Regions, which was partially offset by an
increase in unit sales in North America.
Yen (billions) (Yen)
Net Income attributable
to Honda Motor Co., Ltd. /
Net Income attributable
to Honda Motor Co., Ltd.
per Common Share
Fiscal years ended March 31
Net Income attributable to
Honda Motor Co., Ltd. (left scale)
Net Income attributable to
Honda Motor Co., Ltd. per
Common Share (right scale)
200
400
600
0
150
300
450
0
10 11 12 13 14
Honda Motor Co., Ltd. Annual Report 2014 32
6 Financial Section
1 The Power of Dreams
2 Financial Highlights
3 To Our Shareholders
4 Review of Operations
5 Corporate Governance
7
Investor Relations
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