Honda 2015 Annual Report Download - page 26

Profit for the Year Attributable to Owners of the Parent
Profit for the year attributable to owners of the parent decreased by ¥115.2 billion,
or 18.5%, to ¥509.4 billion from the previous fiscal year.
Profit for the Year Attributable to Non-controlling Interests
Profit for the year attributable to non-controlling interests increased by ¥10.4
billion, or 25.4%, to ¥51.6 billion from the previous fiscal year, due mainly to an
increase in profit for the year of the subsidiaries in Asia which have non-
controlling interests.
Business Segments
Motorcycle Business
Honda’s consolidated unit sales of motorcycles and all-terrain vehicles (ATVs)
totaled 10,725 thousand units, an increase of 3.8% from the previous fiscal year,
due mainly to an increase in consolidated unit sales in Asia.
Sales revenue from external customers increased by ¥157.4 billion, or 9.3%, to
¥1,846.6 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, sales revenue
for the year would have increased by approximately ¥70.8 billion, or 4.2%, com-
pared to the increase as reported of ¥157.4 billion, which includes positive foreign
currency translation effects.
Operating costs and expenses increased by ¥142.1 billion, or 9.4%, to
¥1,654.5 billion from the previous fiscal year. Cost of sales increased by ¥114.4
billion, or 9.3%, to ¥1,342.8 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 ¥20.3 billion, or 9.5%, to
¥233.8 billion, due mainly to an increase in selling expenses attributable to
increased consolidated unit sales and negative foreign currency effects. Research
and development expenses increased by ¥7.3 billion, or 10.5%, to ¥77.7 billion.
Operating profit increased by ¥15.2 billion, or 8.6%, to ¥192.1 billion from the
previous fiscal year, due mainly to an increase in profit attributable to increased
sales revenue and positive foreign currency effects, which was partially offset by
increased selling, general and administrative expenses.
Automobile Business
Honda’s consolidated unit sales of automobiles totaled 3,513 thousand units, a
decrease of 0.5% from the previous fiscal year, due mainly to a decrease in con-
solidated unit sales in Japan, which was partially offset by an increase in Asia.
Sales revenue from external customers increased by ¥424.5 billion, or 4.6%,
to ¥9,603.3 billion from the previous fiscal year, due mainly to 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, sales revenue for the year would have decreased by
approximately ¥107.9 billion, or 1.2%, compared to the increase as reported of
¥424.5 billion, which includes positive foreign currency translation effects. Sales
revenue including intersegment sales increased by ¥508.5 billion, or 5.5%, to
¥9,757.8 billion from the previous fiscal year.
Operating costs and expenses increased by ¥689.9 billion, or 7.9%, to
¥9,478.1 billion from the previous fiscal year. Cost of sales increased by ¥491.9
billion, or 6.9%, to ¥7,641.8 billion, due mainly to negative foreign currency
effects. Selling, general and administrative expenses increased by ¥197.4 billion,
or 17.3%, to ¥1,337.7 billion, due mainly to increased product warranty expenses
and negative foreign currency effects. Product warranty expenses include
expenses related to airbag inflators. Research and development expenses totaled
¥498.4 billion, basically unchanged from the previous fiscal year.
Operating profit decreased by ¥181.4 billion, or 39.3%, to ¥279.7 billion from
the previous fiscal year, due mainly to increased selling, general and administrative
expenses including product warranty expenses, which was partially offset by
continuing cost reduction and positive foreign currency effect.
Financial Services Business
To support the sale of its products, Honda provides retail lending and leasing to
customers and wholesale financing to dealers through its finance subsidiaries in
Japan, the United States, Canada, the United Kingdom, Germany, Brazil, Thailand
and other countries.
Total amount of receivables from financial services and equipment on operating
leases of finance subsidiaries on March 31, 2015 increased by ¥1,240.3 billion, or
15.9%, to ¥9,018.9 billion from the March 31, 2014. Honda estimates that by apply-
ing Japanese yen exchange rates of the previous fiscal year to the current fiscal
year, total amount of receivables from financial services and equipment on operating
leases of finance subsidiaries as of March 31, 2015 would have increased by
Yen (billions) (Yen)
Profit for the Year
Attributable to Owners of
the Parent/Basic Earnings
per Share Attributable to
Owners of the Parent
* From fiscal 2011 to 2013, the above were named
“Net Income Attributable to Honda Motor Co.,
Ltd.” and “Basic Net Income Attributable to
Honda Motor Co., Ltd. per Common Share,”
and stated in accordance with U.S. GAAP.
Fiscal years ended March 31
Profit for the Year Attributable to
Owners of the Parent (left scale)
Basic Earnings per Share
Attributable to Owners of
the Parent (right scale)
400
200
600
800
0
100
200
300
400
0
11 12 13 14 15
U.S. GAAP IFRS
Honda Motor Co., Ltd. Annual Report 2015 25
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
Information
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