Edgar Filing: HONDA MOTOR CO LTD

FORM 6-K

No.1-7628

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16

UNDER THE SECURITIES EXCHANGE ACT OF 1934

FOR THE MONTH OF AUGUST 2016

COMMISSION FILE NUMBER: 1-07628

HONDA GIKEN KOGYO KABUSHIKI KAISHA

(Name of registrant)

HONDA MOTOR CO., LTD.

(Translation of registrant’s name into English)

1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo 107-8556, Japan

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:

Form 20-F x Form 40-F ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): ¨

Contents

Exhibit 1:

On August 2, 2016, Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal first quarter ended June 30, 2016.

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

HONDA GIKEN KOGYO KABUSHIKI KAISHA

(HONDA MOTOR CO., LTD.)

/s/ Shinji Suzuki

Shinji Suzuki

General Manager

Finance Division

Honda Motor Co., Ltd.

Date: August 4, 2016

August 2, 2016

HONDA MOTOR CO., LTD. REPORTS

CONSOLIDATED FINANCIAL RESULTS

FOR THE FISCAL FIRST QUARTER ENDED JUNE 30, 2016

Tokyo, August 2, 2016 — Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal first quarter ended June 30, 2016.

First Quarter Results

Honda’s consolidated profit for the period attributable to owners of the parent for the fiscal first quarter ended June 30, 2016 totaled JPY 174.6 billion (USD 1,698 million), a decrease of 6.1% from the same period last year, due primarily to an increase in Income tax expense. Earnings per share attributable to owners of the parent for the quarter amounted to JPY 96.93 (USD 0.94), a decrease of JPY 6.29 (USD 0.06) from JPY 103.22 for the corresponding period last year. One Honda American Depository Share represents one common share.

Consolidated sales revenue for the quarter amounted to JPY 3,471.7 billion (USD 33,736 million), a decrease of 6.3% from the same period last year, due primarily to unfavorable foreign currency translation effects, despite increased consolidated unit sales in automobile and motorcycle business operations.

Consolidated operating profit for the quarter amounted to JPY 266.8 billion (USD 2,593 million), an increase of 11.5% from the same period last year, due primarily to continuing cost reduction efforts and an increase in profit attributable to increased sales revenue and model mix, as well as decreased SG&A expenses, including quality related expenses, despite unfavorable foreign currency effects and the effects of the 2016 Kumamoto Earthquake.

Share of profit of investments accounted for using the equity method for the quarter amounted to JPY 27.2 billion (USD 265 million) for the quarter, a decrease of 29.0% from the corresponding period last year.

Consolidated profit before income taxes for the quarter totaled JPY 288.4 billion (USD 2,803 million), an increase of 2.2% from the same period last year.

- 1 -

Business Segment

Motorcycle Business

For the three months ended June 30, 2015 and 2016


	Unit (Thousands)
	Honda Group Unit Sales								Consolidated Unit Sale
	Three months ended Jun. 30, 2015		Three months ended Jun. 30, 2016		Change		%		Three months ended Jun. 30, 2015		Three months ended Jun. 30, 2016		Change		%
Motorcycle business		4,105		4,352		247		6.0		2,545		2,831		286		11.2
Japan		47		29		- 18		- 38.3		47		29		- 18		- 38.3
North America		75		78		3		4.0		75		78		3		4.0
Europe		66		72		6		9.1		66		72		6		9.1
Asia		3,571		3,885		314		8.8		2,011		2,364		353		17.6
Other Regions		346		288		- 58		- 16.8		346		288		- 58		- 16.8

With respect to Honda’s sales for the fiscal first quarter by business segment, in motorcycle business operations, sales revenue from sales to external customers decreased 8.5%, to JPY 432.4 billion (USD 4,202 million) from the same period last year, due mainly to unfavorable foreign currency translation effects, despite increased consolidated unit sales. Operating profit totaled JPY 31.1 billion (USD 303 million), a decrease of 43.9% from the same period last year, due primarily to a decrease in profit attributable to decreased sales volume and model mix, including the effects of the 2016 Kumamoto Earthquake and unfavorable foreign currency effects despite continuing cost reduction efforts.

Automobile Business

For the three months ended June 30, 2015 and 2016


	Unit (Thousands)
	Honda Group Unit Sales								Consolidated Unit Sales
	Three months ended Jun. 30, 2015		Three months ended Jun. 30, 2016		Change		%		Three months ended Jun. 30, 2015		Three months ended Jun. 30, 2016		Change		%
Automobile business		1,147		1,213		66		5.8		888		908		20		2.3
Japan		147		146		- 1		- 0.7		135		132		- 3		- 2.2
North America		497		510		13		2.6		497		510		13		2.6
Europe		32		45		13		40.6		32		45		13		40.6
Asia		405		453		48		11.9		158		162		4		2.5
Other Regions		66		59		- 7		- 10.6		66		59		- 7		- 10.6

Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. Certain sales of automobiles that are financed with residual value type auto loans by our Japanese finance subsidiaries and sold through our consolidated subsidiaries are accounted for as operating leases in conformity with IFRS and are not included in consolidated sales revenue to the external customers in our Automobile business. Accordingly, they are not included in Consolidated Unit Sales, but are included in Honda Group Unit Sales of our Automobile business.

In automobile business operations, sales revenue from sales to external customers decreased 6.6%, to JPY 2,498.9 billion (USD 24,283 million) from the same period last year due mainly to unfavorable foreign currency translation effects, despite increased consolidated unit sales. Operating profit totaled JPY 184.5 billion (USD 1,793 million), an increase of 41.1% from the same period last year, due primarily to an increase in profit attributable to increased sales volume and model mix and decreased SG&A expenses, including quality related expenses, as well as continuing cost reduction efforts, despite unfavorable foreign currency effects.

- 2 -

Financial Services Business

Sales revenue from customers in the financial services business operations decreased 1.9%, to JPY 464.6 billion (USD 4,515 million) from the same period last year due mainly to unfavorable foreign currency translation effects, despite an increase in revenue from operating leases. Operating profit decreased 3.6% to JPY 50.5 billion (USD 491 million) from the same period last year due mainly to unfavorable foreign currency effects.

Power Product and Other Businesses

For the three months ended June 30, 2015 and 2016


	Unit (Thousands)
	Honda Group Unit Sales/ Consolidated Unit Sales
	Three months ended Jun. 30, 2015		Three months ended Jun. 30, 2016		Change		%
	Three months ended Jun. 30, 2015		Three months ended Jun. 30, 2016		Change		%
Power product business		1,558		1,488		- 70		- 4.5
Japan		85		59		- 26		- 30.6
North America		804		769		- 35		- 4.4
Europe		231		225		- 6		- 2.6
Asia		340		360		20		5.9
Other Regions		98		75		- 23		- 23.5

Note: Honda Group Unit Sales is the total unit sales of completed products of Honda, its consolidated subsidiaries and its affiliates and joint ventures accounted for using the equity method. Consolidated Unit Sales is the total unit sales of completed products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed products of Honda and its consolidated subsidiaries. In power product business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales for the three months ended June 30, 2015 and 2016, since no affiliates and joint ventures accounted for using the equity method were involved in the sale of Honda power products.

Sales revenue from sales to external customers in power product and other businesses decreased 8.3%, to JPY 75.6 billion (USD 735 million) from the same period last year, due mainly to decreased consolidated unit sales in power product business. Operating profit totaled JPY 0.5 billion (USD 5 million), an increase of 2.9% from the same period last year, due mainly to a decrease in operating costs and expenses in other businesses, despite a decrease in profit attributable to decreased sales volume and model mix. Operating loss for aircrafts and aircraft engines, included in Power product and other businesses, totaled JPY 8.8 billion (USD 86 million), an improvement of JPY 3.2 billion (USD 32 million) from the same period last year.

Explanatory note:

United States dollar amounts have been translated from yen solely for the convenience of the reader at the rate of JPY 102.91=USD 1, the mean of the telegraphic transfer selling exchange rate and the telegraphic transfer buying exchange rate prevailing on the Tokyo foreign exchange market on June 30, 2016.

- 3 -

Consolidated Statements of Balance Sheets for the Fiscal First Quarter Ended June 30, 2016

Total assets decreased by JPY 1,126.6 billion, to JPY 17,102.6 billion from March 31, 2016, mainly due to foreign currency translation effects, despite an increase in Equipment on operating leases. Total liabilities decreased by JPY 821.7 billion, to JPY 10,375.7 billion from March 31, 2016, mainly due to foreign currency translation effects, despite an increase in Financing liabilities. Total equity decreased by JPY 304.8 billion, to JPY 6,726.9 billion from March 31, 2016 due mainly to foreign currency translation effects, despite increased Retained earnings attributable to increased Profit for the period.

- 4 -

Consolidated Statements of Cash Flows for the Fiscal First Quarter Ended June 30, 2016

Consolidated cash and cash equivalents on June 30, 2016 decreased by JPY 84.6 billion from March 31, 2016, to JPY 1,672.8 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the same period of the previous fiscal year, are as follows:

Cash flows from operating activities

Net cash provided by operating activities amounted to JPY 171.3 billion for the fiscal first quarter ended June 30, 2016. Cash inflows from operating activities decreased by JPY 244.5 billion compared with the same period of the previous fiscal year due mainly to a decrease in cash received from customers, including unfavorable foreign currency translation effects.

Cash flows from investing activities

Net cash used in investing activities amounted to JPY 182.0 billion. Cash outflows from investing activities increased by JPY 61.6 billion compared with the same period of the previous fiscal year, due mainly to a decrease in Payments for additions to property, plant and equipment.

Cash flows from financing activities

Net cash provided by financing activities amounted to JPY 52.7 billion. Cash inflows from financing activities increased by JPY 64.3 billion compared with the same period of the previous fiscal year, due mainly to an increase in proceeds from financing liabilities.

- 5 -

Forecasts for the Fiscal Year Ending March 31, 2017

In regard to the forecasts of the financial results for the fiscal year ending March 31, 2017, Honda projects consolidated results to be as shown below:

Fiscal year ending March 31, 2017


	Yen (billions)		Changes from FY 2016
Sales revenue		13,750.0		- 5.8	%
Operating profit		600.0		+ 19.2	%
Profit before income taxes		705.0		+ 10.9	%
Profit for the year attributable to owners of the parent		390.0		+ 13.2	%

	Yen
Earnings per share attributable to owners of the parent
Basic and diluted		216.39

Note: The forecasts are based on the assumption that the average exchange rates for the Japanese yen to the U.S. dollar will be JPY 105 for the full year ending March 31, 2017.

The reasons for the increases or decreases in the forecasts of the operating profit, and profit before income taxes for the fiscal year ending March 31, 2017 from the previous year are as follows.


	Yen (billions)
Revenue, model mix, etc.		49.6
Cost reduction, the effect of raw material cost fluctuations, etc.		113.0
SG&A expenses		291.0
R&D expenses		- 54.0
Currency effect		- 303.0

Operating profit compared with fiscal year ending March 31,2016		96.6

Share of profit of investments accounted for using the equity method		3.9
Finance income and finance costs		- 31.0

Profit before income taxes compared with fiscal year ending March 31, 2016		69.5

- 6 -

Dividend per Share of Common Stock

The Board of Directors of Honda Motor Co., Ltd., at its meeting held on August 2, 2016, resolved to make the quarterly dividend JPY 22 per share of common stock, the record date of which is June 30, 2016. The total expected annual dividend per share of common stock for the fiscal year ending March 31, 2017, is JPY 88 per share.

This announcement contains “forward-looking statements” as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Such statements are based on management’s assumptions and beliefs taking into account information currently available to it. Therefore, please be advised that the actual results of the Company could differ materially from those described in these forward-looking statements as a result of numerous factors, including general economic conditions in the principal markets of the Company, its consolidated subsidiaries and its affiliates accounted for using the equity method, and fluctuation of foreign exchange rates, as well as other factors detailed from time to time.

- 7 -

Consolidated Financial Summary

For the three months ended June 30, 2015 and 2016

Financial Highlights


	Yen (millions)
	Three months ended Jun. 30, 2015		Three months ended Jun. 30, 2016
Sales revenue		3,704,762		3,471,730
Operating profit		239,286		266,843
Profit before income taxes		282,327		288,492
Profit for the period attributable to owners of the parent		186,037		174,699

	Yen
Earnings per share attributable to owners of the parent
Basic and diluted		103.22		96.93

	U.S. Dollar (millions)
			Three months ended Jun. 30, 2016
Sales revenue				33,736
Operating profit				2,593
Profit before income taxes				2,803
Profit for the period attributable to owners of the parent				1,698

	U.S. Dollar
Earnings per share attributable to owners of the parent
Basic and diluted				0.94

- 8 -

[1] Condensed Consolidated Statements of Financial Position


	Yen (millions)
	Mar. 31, 2016			Jun. 30, 2016
Assets
Current assets:
Cash and cash equivalents		1,757,456			1,672,807
Trade receivables		826,714			687,933
Receivables from financial services		1,926,014			1,765,348
Other financial assets		103,035			93,895
Inventories		1,313,292			1,230,618
Other current assets		315,115			300,225

Total current assets		6,241,626			5,750,826

Non-current assets:
Investments accounted for using the equity method		593,002			569,617
Receivables from financial services		3,082,054			2,829,292
Other financial assets		335,203			313,548
Equipment on operating leases		3,678,111			3,555,648
Property, plant and equipment		3,139,564			2,964,969
Intangible assets		824,939			806,543
Deferred tax assets		180,828			175,727
Other non-current assets		153,967			136,491

Total non-current assets		11,987,668			11,351,835

Total assets		18,229,294			17,102,661

Liabilities and Equity
Current liabilities:
Trade payables		1,128,041			941,063
Financing liabilities		2,789,620			2,784,142
Accrued expenses		384,614			335,296
Other financial liabilities		89,809			108,154
Income taxes payable		45,872			44,643
Provisions		513,232			504,783
Other current liabilities		519,163			453,848

Total current liabilities		5,470,351			5,171,929

Non-current liabilities:
Financing liabilities		3,736,628			3,350,694
Other financial liabilities		47,755			45,545
Retirement benefit liabilities		660,279			635,412
Provisions		264,978			190,195
Deferred tax liabilities		789,830			767,962
Other non-current liabilities		227,685			213,993

Total non-current liabilities		5,727,155			5,203,801

Total liabilities		11,197,506			10,375,730

Equity:
Common stock		86,067			86,067
Capital surplus		171,118			171,118
Treasury stock		(26,178	)		(26,181	)
Retained earnings		6,194,311			6,334,667
Other components of equity		336,115			(68,688	)

Equity attributable to owners of the parent		6,761,433			6,496,983
Non-controlling interests		270,355			229,948

Total equity		7,031,788			6,726,931

Total liabilities and equity		18,229,294			17,102,661

- 9 -

[2] Condensed Consolidated Statements of Income and Condensed Consolidated Statements of Comprehensive Income

Condensed Consolidated Statements of Income

For the three months ended June 30, 2015 and 2016


	Yen (millions)
	Three months ended Jun. 30, 2015			Three months ended Jun. 30, 2016
Sales revenue		3,704,762			3,471,730
Operating costs and expenses:
Cost of sales		(2,885,646	)		(2,677,660	)
Selling, general and administrative		(434,488	)		(361,663	)
Research and development		(145,342	)		(165,564	)

Total operating costs and expenses		(3,465,476	)		(3,204,887	)

Operating profit		239,286			266,843

Share of profit of investments accounted for using the equity method		38,315			27,222
Finance income and finance costs:
Interest income		7,792			7,440
Interest expense		(4,825	)		(3,092	)
Other, net		1,759			(9,921	)

Total finance income and finance costs		4,726			(5,573	)

Profit before income taxes		282,327			288,492
Income tax expense		(78,451	)		(98,626	)

Profit for the period		203,876			189,866

Profit for the period attributable to:
Owners of the parent		186,037			174,699
Non-controlling interests		17,839			15,167

	Yen
Earnings per share attributable to owners of the parent
Basic and diluted		103.22			96.93

- 10 -

Condensed Consolidated Statements of Comprehensive Income

For the three months ended June 30, 2015 and 2016


	Yen (millions)
	Three months ended Jun. 30, 2015		Three months ended Jun. 30, 2016
Profit for the period		203,876		189,866
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans		—		—
Net changes in revaluation of financial assets measured at fair value through other comprehensive income		2,578		(10,921	)
Share of other comprehensive income of investments accounted for using the equity method		364		(2,084	)
Items that may be reclassified subsequently to profit or loss
Exchange differences on translating foreign operations		79,612		(376,380	)
Share of other comprehensive income of investments accounted for using the equity method		7,716		(36,264	)

Total other comprehensive income, net of tax		90,270		(425,649	)

Comprehensive income for the period		294,146		(235,783	)

Comprehensive income for the period attributable to:
Owners of the parent		276,033		(224,797	)
Non-controlling interests		18,113		(10,986	)

- 11 -

[3] Condensed Consolidated Statements of Changes in Equity

As of and for the three months ended June 30, 2015


	Yen (millions)
	Equity attributable to owners of the parent
	Common stock		Capital surplus		Treasury stock			Retained earnings			Other components of equity			Total			Non-controlling interests			Total equity
Balance as of April 1, 2015		86,067		171,118		(26,165	)		6,083,573			794,034			7,108,627			274,194			7,382,821

Comprehensive income for the period
Profit for the period									186,037						186,037			17,839			203,876
Other comprehensive income, net of tax												89,996			89,996			274			90,270

Total comprehensive income for the period									186,037			89,996			276,033			18,113			294,146
Reclassification to retained earnings									79			(79	)		—						—
Transactions with owners and other
Dividends paid									(39,650	)					(39,650	)		(26,812	)		(66,462	)
Purchases of treasury stock						(5	)								(5	)					(5	)
Equity transactions and others																		(2,600	)		(2,600	)

Total transactions with owners and other						(5	)		(39,650	)					(39,655	)		(29,412	)		(69,067	)

Balance as of June 30, 2015		86,067		171,118		(26,170	)		6,230,039			883,951			7,345,005			262,895			7,607,900


As of and for the three months ended June 30, 2016

	Yen (millions)
	Equity attributable to owners of the parent																Non-controlling interests			Total equity
	Common stock		Capital surplus		Treasury stock			Retained earnings			Other components of equity			Total			Non-controlling interests			Total equity
Balance as of April 1, 2016		86,067		171,118		(26,178	)		6,194,311			336,115			6,761,433			270,355			7,031,788

Comprehensive income for the period
Profit for the period									174,699						174,699			15,167			189,866
Other comprehensive income, net of tax												(399,496	)		(399,496	)		(26,153	)		(425,649	)

Total comprehensive income for the period									174,699			(399,496	)		(224,797	)		(10,986	)		(235,783	)
Reclassification to retained earnings									5,307			(5,307	)		—						—
Transactions with owners and other
Dividends paid									(39,650	)					(39,650	)		(29,421	)		(69,071	)
Purchases of treasury stock						(3	)								(3	)					(3	)
Equity transactions and others

Total transactions with owners and other						(3	)		(39,650	)					(39,653	)		(29,421	)		(69,074	)

Balance as of June 30, 2016		86,067		171,118		(26,181	)		6,334,667			(68,688	)		6,496,983			229,948			6,726,931

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[4] Condensed Consolidated Statements of Cash Flows


	Yen (millions)
	Three months ended Jun. 30, 2015			Three months ended Jun. 30, 2016
Cash flows from operating activities:
Profit before income taxes		282,327			288,492
Depreciation, amortization and impairment losses excluding equipment on operating leases		161,009			167,075
Share of profit of investments accounted for using the equity method		(38,315	)		(27,222	)
Finance income and finance costs, net		(2,239	)		(10,901	)
Interest income and interest costs from financial services, net		(39,099	)		(30,522	)
Changes in assets and liabilities
Trade receivables		(18,337	)		93,656
Inventories		67,768			(19,740	)
Trade payables		3,799			(90,990	)
Accrued expenses		(16,245	)		(21,539	)
Provisions and retirement benefit liabilities		36,858			(40,175	)
Receivables from financial services		104,402			27,098
Equipment on operating leases		(158,340	)		(158,531	)
Other assets and liabilities		(31,714	)		(17,245	)
Other, net		(3,166	)		(3,198	)
Dividends received		17,833			20,362
Interest received		57,923			53,294
Interest paid		(20,811	)		(20,206	)
Income taxes paid, net of refunds		12,243			(38,322	)

Net cash provided by operating activities		415,896			171,386
Cash flows from investing activities:
Payments for additions to property, plant and equipment		(187,191	)		(132,375	)
Payments for additions to and internally developed intangible assets		(61,641	)		(38,460	)
Proceeds from sales of property, plant and equipment and intangible assets		11,832			5,169
Payments for acquisitions of subsidiaries, net of cash and cash equivalents acquired		—			(2,835	)
Payments for acquisitions of other financial assets		(44,388	)		(45,572	)
Proceeds from sales and redemptions of other financial assets		38,425			32,253
Other, net		(749	)		(200	)

Net cash used in investing activities		(243,712	)		(182,020	)
Cash flows from financing activities:
Proceeds from short-term financing liabilities		1,935,856			2,411,374
Repayments of short-term financing liabilities		(1,917,912	)		(2,158,928	)
Proceeds from long-term financing liabilities		249,458			226,200
Repayments of long-term financing liabilities		(215,950	)		(364,795	)
Dividends paid to owners of the parent		(39,650	)		(39,650	)
Dividends paid to non-controlling interests		(10,334	)		(9,114	)
Purchases and sales of treasury stock, net		(5	)		(3	)
Other, net		(13,064	)		(12,367	)

Net cash provided by (used in) financing activities		(11,601	)		52,717
Effect of exchange rate changes on cash and cash equivalents		18,620			(126,732	)

Net change in cash and cash equivalents		179,203			(84,649	)
Cash and cash equivalents at beginning of period		1,471,730			1,757,456

Cash and cash equivalents at end of period		1,650,933			1,672,807

- 13 -

[5] Assumptions for Going Concern

None

- 14 -

[6] Segment Information

Honda has four reportable segments: Motorcycle business, Automobile business, Financial services business and Power product and other businesses, which are based on Honda’s organizational structure and characteristics of products and services. Operating segments are defined as the components of Honda for which separate financial information is available that is evaluated regularly by the chief operating decision maker in deciding how to allocate resources and in assessing performance. The accounting policies used for these reportable segments are consistent with the accounting policies used in the Company’s condensed consolidated financial statements.

Principal products and services, and functions of each segment are as follows:


Segment	Principal products and services	Functions
Motorcycle Business	Motorcycles, all-terrain vehicles (ATVs) and relevant parts	Research and development Manufacturing Sales and related services

Automobile Business	Automobiles and relevant parts	Research and development Manufacturing Sales and related services

Financial Services Business	Financial services	Retail loan and lease related to Honda products Others

Power Product and Other Businesses	Power products and relevant parts, and others	Research and development Manufacturing Sales and related services Others

1. Segment information based on products and services

As of and for the three months ended June 30, 2015


	Yen (millions)
	Motorcycle Business		Automobile Business		Financial Services Business		Power Product and Other Businesses		Segment Total		Reconciling Items			Consolidated
Sales revenue:
External customers		472,703		2,675,887		473,672		82,500		3,704,762		—			3,704,762
Intersegment		—		30,187		3,189		5,698		39,074		(39,074	)		—

Total		472,703		2,706,074		476,861		88,198		3,743,836		(39,074	)		3,704,762

Segment profit (loss)		55,570		130,754		52,442		520		239,286		—			239,286

Segment assets		1,478,203		7,847,973		9,560,216		352,962		19,239,354		(340,851	)		18,898,503
Depreciation and amortization		17,916		139,107		147,039		3,086		307,148		—			307,148
Capital expenditures		16,522		207,662		519,708		2,709		746,601		—			746,601

As of and for the three months ended June 30, 2016

Yen (millions)

Motorcycle
Business

Automobile
Business

Financial
Services
Business

Power Product
and Other
Businesses

Segment
Total

Reconciling
Items

Consolidated

Sales revenue:

External customers

432,404

2,498,985

464,674

75,667

3,471,730

—

3,471,730

Intersegment

—

37,126

3,296

5,245

45,667

(45,667

)

—

Total

432,404

2,536,111

467,970

80,912

3,517,397

(45,667

)

3,471,730

Segment profit (loss)

31,198

184,533

50,577

535

266,843

—

266,843

Segment assets

1,302,343

7,155,959

8,538,313

319,772

17,316,387

(213,726

)

17,102,661

Depreciation and amortization

19,691

142,959

154,900

3,682

321,232

—

321,232

Capital expenditures

7,838

130,493

524,795

2,163

665,289

—

665,289

Explanatory notes:

1.	Intersegment sales revenues are generally made at values that approximate arm’s-length prices.

Unallocated corporate assets, included in reconciling items, amounted to JPY 337,414 million as of June 30, 2015 and JPY 261,040 million as of June 30, 2016 respectively, which consist primarily of cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

- 15 -

In addition to the disclosure required by IFRS, Honda provides the following supplemental information for the financial statements users:

2. Supplemental geographical information based on the location of the Company and its subsidiaries

As of and for the three months ended June 30, 2015


	Yen (millions)
	Japan			North America		Europe			Asia		Other Regions		Total		Reconciling Items			Consolidated
Sales revenue:
External customers		463,069			2,104,532		152,007			745,165		239,989		3,704,762		—			3,704,762
Inter-geographic areas		453,490			87,084		18,804			153,766		614		713,758		(713,758	)		—

Total		916,559			2,191,616		170,811			898,931		240,603		4,418,520		(713,758	)		3,704,762

Operating profit (loss)		27,810			109,023		(956	)		95,570		4,504		235,951		3,335			239,286

Assets		4,166,091			10,892,516		651,735			2,583,144		718,636		19,012,122		(113,619	)		18,898,503
Non-current assets other than financial instruments and deferred tax assets		2,312,171			4,346,423		120,860			767,435		212,452		7,759,341		—			7,759,341

As of and for the three months ended June 30, 2016

	Yen (millions)
	Japan			North America		Europe			Asia		Other Regions		Total		Reconciling Items			Consolidated
Sales revenue:
External customers		464,178			1,970,643		172,895			691,777		172,237		3,471,730		—			3,471,730
Inter-geographic areas		441,509			98,160		10,100			139,521		614		689,904		(689,904	)		—

Total		905,687			2,068,803		182,995			831,298		172,851		4,161,634		(689,904	)		3,471,730

Operating profit (loss)		(19,777	)		171,271		1,246			90,321		14,326		257,387		9,456			266,843

Assets		4,198,043			9,579,288		578,115			2,324,820		593,279		17,273,545		(170,884	)		17,102,661
Non-current assets other than financial instruments and deferred tax assets		2,432,536			4,119,488		104,429			633,799		173,399		7,463,651		—			7,463,651

Explanatory notes:

1.	Major countries or regions in each geographic area:


North America		United States, Canada, Mexico
Europe		United Kingdom, Germany, France, Belgium, Turkey
Asia		Thailand, Indonesia, China, India, Vietnam
Other Regions		Brazil, Australia

2.	Sales revenues between geographic areas are generally made at values that approximate arm’s-length prices.

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[7] Other

1. Loss related to airbag inflators

Honda has been conducting market-based measures in relation to airbag inflators. Honda recognizes a provision for specific warranty costs when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. There is a possibility that Honda will need to recognize additional provisions when new evidence related to the product recalls arise, however, it is not possible for Honda to reasonably estimate the amount and timing of potential future losses as of the date of this report.

In the United States and Canada, various class action lawsuits and civil lawsuits related to the above mentioned market-based measures have been filed against Honda. The plaintiffs have claimed for properly functioning airbag inflators, compensation of economic losses including incurred costs and the decline in the value of vehicles, as well as punitive damages. Most of the class action lawsuits in the United States were transferred to the United States District Court for the Southern District of Florida and consolidated into a multidistrict litigation.

Honda did not recognize a provision for loss contingencies because the conditions for a provision have not been met as of the date of this report. Therefore, it is not possible for Honda to reasonably estimate the amount and timing of potential future losses, if any, as of the date of this report because there is some uncertainty.

2. Transfer pricing tax refund

In May 2015, the lawsuit related to transfer pricing involving the Company’s transactions with certain consolidated subsidiaries in Brazil was concluded, and it was ruled that the Company shall receive a tax refund with corresponding interest in Japan. As a result, income tax expense decreased by JPY 19,145 million for the three months ended June 30, 2015.

3. Impairment loss on investments accounted for using the equity method

For the three months ended June 30, 2016, the Company recognized impairment losses of JPY 12,871 million on certain investments accounted for using the equity method because there is objective evidence of impairment from declines in quoted market values. The impairment losses are included in share of profit of investments accounted for using the equity method in the condensed consolidated statement of income.

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