Honda 2015 Annual Report Download - page 29

In North America, the ACURA TLX was launched equipped with a 2.4L engine
mated to a new 8-speed dual-clutch transmission with torque converter and a
3.5L engine mated to a new 9-speed automatic transmission to realize high power
output and fuel economy.
Honda announced the Honda FCV CONCEPT, which is a successor model to
the FCX Clarity, with which Honda strives to achieve further improvement in per-
formance and reduction in cost. This FCV can function as a small-sized mobile
power plant that generates and provides electricity to the community in times of
disaster or other events when combined with an external power feeding device,
Honda Power Exporter CONCEPT.
R&D expenditures in this segment incurred during the fiscal year 2014 and
2015 were ¥524.3 billion and ¥567.3 billion, respectively.
Power Product and Other Businesses
Under the slogan of “proposing new and useful ideas that will bring joy to customers
worldwide,” the power product business pursues initiatives focused primarily on
(1)creating new products and technologies for developed countries, and (2)devel-
oping products for expanding markets in the emerging countries.
Among major technological achievements, Honda launched the Yukios e, an
electric-powered snow thrower with outstanding quietness and ease of use which
was realized through the adoption of a rechargeable battery and DC brushless
motor for the power unit.
In addition, Honda released the EU55is electrical generator equipped with an
electronic fuel injector and a large-capacity fuel tank that has achieved the longest
continuous operating time in its class. The EU55is has improved its fuel efficiency
by approximately 15% compared to conventional models.
With regard to engine-powered water pumps, Honda launched the WL20XH
and WL30XH, equipped with a new power product engine with four impeller wings
that give improved performance in a wide range of uses such as water suction
and discharge operations at a light load power output.
In the aviation engine business, which is in the category of Other businesses,
Honda received a Type Certification (TC) from the United States Federal Aviation
Administration (FAA) in December 2013 for the HF120 small jet engine and
received a Production Certification (PC) in March 2015.
Furthermore, Honda received Provisional Type Certification (PTC) for the
HondaJet equipped with the HF120 engine in March 2015.
R&D expenditures in this segment incurred during the fiscal year 2014 and
2015 were ¥28.9 billion and ¥29.2 billion, respectively.
Patents and Licenses
As of March 31, 2015, Honda owned more than 21,000 patents in Japan and
more than 25,000 patents abroad. Honda also had applications pending for more
than 7,600 patents in Japan and for more than 15,200 patents abroad. While
Honda considers that, in the aggregate, Honda’s patents are important, it does
not consider any one of such patents, or any related group of them, to be of such
importance that the expiration or termination thereof would materially affect
Honda’s business.
Capital Expenditures
Capital expenditures in the fiscal year ended March 31, 2015 were applied to the
introduction of new models, as well as the improvement, streamlining and mod-
ernization of production facilities, and improvement of sales and R&D facilities.
Total capital expenditures for the year amounted to ¥2,334.9 billion, increased
by ¥378.2 billion from the previous year. Also, total capital expenditures, excluding
equipment on operating leases, for the year amounted to ¥653.8 billion,
decreased by ¥92.2 billion from the previous year. Spending by business segment
is shown below.
Yen (millions)
Fiscal years ended March31 2014 2015
Motorcycle Business ¥ 55,394 ¥ 68,171
Automobile Business 673,038 573,312
Financial Services Business
(Excluding Equipment on Operating Leases) 473 432
Power Product and Other Businesses 17,146 11,896
Total ¥ 746,051 ¥ 653,811
Equipment on Operating Leases ¥1,210,679 ¥1,681,178
Note: Intangible assets are not included in the table above.
Yen (billions)
Capital Expenditures
and Depreciation
Fiscal years ended March 31
Capital Expenditures
Depreciation
250
500
750
011 12 13 14 15
Note: Capital Expenditure and Depreciation aforementioned exclude Capital Expenditure and Depreciation in
operating lease assets and intangible assets.
U.S. GAAP IFRS
Honda Motor Co., Ltd. Annual Report 2015 28
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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