HONDA MOTOR : AND SUBSIDIARIES - Form 6-K

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Consolidated Financial Results

Overview of Operating Performance

Honda's consolidated sales revenue for the six months ended September 30, 2022 increased by 15.7%, to ¥8,085.3 billion from the same period last year, due mainly to increased sales revenue in Motorcycle business as well as positive foreign currency translation effects. Operating profit increased by 2.5%, to ¥453.4 billion from the same period last year, due mainly to an increase in profit attributable to price and cost impacts as well as positive foreign currency effects, which was partially offset by decreased profit attributable to sales impacts. Profit before income taxes decreased by 8.0%, to ¥515.8 billion from the same period last year, due mainly to decreased share of profit of investments accounted for using the equity method. Profit for the period attributable to owners of the parent decreased by 13.0%, to ¥338.5 billion from the same period last year.

Business Segments

Motorcycle Business

For the six months ended September 30, 2021 and 2022

		Units (thousands)
		Honda Group Unit Sales*			Consolidated Unit Sales*
	Six months ended Sep. 30, 2021			Six months ended Sep. 30, 2022									Six months ended Sep. 30, 2021			Six months ended Sep. 30, 2022
	Change			%			Change			%
Motorcycle Business			8,173				9,202				1,029				12.6				5,087				6,343				1,256				24.7
Japan			126				114				(12	)			(9.5	)			126				114				(12	)			(9.5	)
North America			214				220				6				2.8				214				220				6				2.8
Europe			184				144				(40	)			(21.7	)			184				144				(40	)			(21.7	)
Asia			6,915				7,900				985				14.2				3,829				5,041				1,212				31.7
Other Regions			734				824				90				12.3				734				824				90				12.3

*

Honda Group Unit Sales is the total unit sales of completed motorcycle, ATV and side-by-side 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.

Sales revenue from external customers increased by 38.0%, to ¥1,412.6 billion from the same period last year, due mainly to an increase in consolidated unit sales as well as positive foreign currency translation effects. Operating profit increased by 51.7%, to ¥224.7 billion from the same period last year, due mainly to an increase in profit attributable to price and cost impacts as well as positive foreign currency effects.

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Automobile Business

For the six months ended September 30, 2021 and 2022

		Units (thousands)
		Honda Group Unit Sales*			Consolidated Unit Sales*
	Six months ended Sep. 30, 2021			Six months ended Sep. 30, 2022									Six months ended Sep. 30, 2021			Six months ended Sep. 30, 2022
	Change			%			Change			%
Automobile Business			1,915				1,785				(130	)			(6.8	)			1,182				1,093				(89	)			(7.5	)
Japan			248				241				(7	)			(2.8	)			215				212				(3	)			(1.4	)
North America			667				542				(125	)			(18.7	)			667				542				(125	)			(18.7	)
Europe			56				45				(11	)			(19.6	)			56				45				(11	)			(19.6	)
Asia			882				898				16				1.8				182				235				53				29.1
Other Regions			62				59				(3	)			(4.8	)			62				59				(3	)			(4.8	)

*

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 and others by our Japanese finance subsidiaries and provided 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.

Sales revenue from external customers increased by 13.5%, to ¥4,920.1 billion from the same period last year, due mainly to positive foreign currency translation effects, which was partially offset by decreased consolidated unit sales. Operating profit decreased by 45.7%, to ¥63.5 billion from the same period last year, due mainly to decreased profit attributable to sales impacts, which was partially offset by positive foreign currency effects.

Financial Services Business

Sales revenue from external customers increased by 5.9%, to ¥1,527.9 billion from the same period last year, due mainly to positive foreign currency translation effects, which was partially offset by decreased operating lease revenues. Operating profit decreased by 13.4%, to ¥153.0 billion from the same period last year, due mainly to a decrease in profit attributable to decreased sales revenue, which was partially offset by positive foreign currency effects.

Power Product and Other Businesses

For the six months ended September 30, 2021 and 2022

		Units (thousands)
		Honda Group Unit Sales / Consolidated Unit Sales*
	Six months ended Sep. 30, 2021			Six months ended Sep. 30, 2022
	Change			%
Power Product Business			3,230				2,935				(295	)			(9.1	)
Japan			184				184				0				0.0
North America			1,597				1,306				(291	)			(18.2	)
Europe			499				554				55				11.0
Asia			756				691				(65	)			(8.6	)
Other Regions			194				200				6				3.1

*

Honda Group Unit Sales is the total unit sales of completed power 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 power products corresponding to consolidated sales revenue to external customers, which consists of unit sales of completed power products of Honda and its consolidated subsidiaries. In Power Product business, there is no discrepancy between Honda Group Unit Sales and Consolidated Unit Sales since no affiliate and joint venture accounted for using the equity method were involved in the sale of Honda power products.

Sales revenue from external customers increased by 20.3%, to ¥224.5 billion from the same period last year, due mainly to positive foreign currency translation effects. Operating profit was ¥12.0 billion, an increase of ¥11.9 billion from the same period last year, due mainly to decreased operating costs in Other businesses as well as positive foreign currency effects. In addition, operating loss of aircraft and aircraft engines included in Power product and other businesses was ¥12.0 billion, an improvement of ¥3.5 billion from the same period last year, due mainly to decreased operating costs, which was partially offset by decreased profit attributable to negative foreign currency translation effects.

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Cash Flows

Consolidated cash and cash equivalents on September 30, 2022 increased by ¥260.4 billion from March 31, 2022, to ¥3,935.3 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the same period last year, are as follows:

Net cash provided by operating activities amounted to ¥1,341.3 billion of cash inflows. Cash inflows from operating activities increased by ¥1,043.2 billion from the same period last year, due mainly to increased cash received from customers, which was partially offset by increased payments for selling, general and administrative expenses.

Net cash used in investing activities amounted to ¥428.6 billion of cash outflows. Cash outflows from investing activities increased by ¥201.9 billion from the same period last year, due mainly to an increase in payments for additions to property, plant and equipment as well as for acquisitions of other financial assets.

Net cash used in financing activities amounted to ¥952.7 billion of cash outflows. Cash outflows from financing activities increased by ¥740.0 billion from the same period last year, due mainly to decreased proceeds from financing liabilities and increased dividends paid.

Research and Development

The changes in research and development activities by Honda and its subsidiaries for the six months ended September 30, 2022 are as follows:

The Company has established Business Development Operations that consolidate functions to develop businesses and areas of software and core electrification technologies in order to strengthen new value creation by combining hardware with software and services. Some technology areas have been moved from their respective product-based business operations, such as motorcycle, automobile and power products, and combined under Business Development Operations. With this change, Honda will accelerate the speed at which it can move and enhance the synergy effect by integrating technology and business for multiple product domains.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Financial Position

March 31, 2022 and September 30, 2022

					Yen (millions)
Assets		Note			March 31, 2022			September 30, 2022
					unaudited			unaudited
Current assets:
Cash and cash equivalents			¥	3,674,931			¥	3,935,348
Trade receivables				896,768				912,679
Receivables from financial services				1,694,113				1,881,825
Other financial assets				217,743				263,709
Inventories				1,918,548				2,265,163
Other current assets				439,322				435,975
Total current assets				8,841,425				9,694,699
Non-current assets:
Investments accounted for using the equity method				967,404				1,118,036
Receivables from financial services				3,740,383				4,038,736
Other financial assets				819,654				931,357
Equipment on operating leases			5				5,159,129				5,314,541
Property, plant and equipment			6				3,079,407				3,287,862
Intangible assets				849,507				869,798
Deferred tax assets				91,592				98,920
Other non-current assets				424,652				473,944
Total non-current assets				15,131,728				16,133,194
Total assets			¥	23,973,153			¥	25,827,893
					Yen (millions)
Liabilities and Equity		Note			March 31, 2022			September 30, 2022
					unaudited			unaudited
Current liabilities:
Trade payables			¥	1,236,233			¥	1,295,080
Financing liabilities				3,118,304				3,524,876
Accrued expenses				375,601				341,137
Other financial liabilities				236,900				490,582
Income taxes payable				96,116				77,458
Provisions			7				268,388				287,019
Other current liabilities				672,857				731,657
Total current liabilities				6,004,399				6,747,809
Non-current liabilities:
Financing liabilities				4,984,252				4,768,693
Other financial liabilities				282,083				285,992
Retirement benefit liabilities				282,054				317,975
Provisions			7				253,625				265,801
Deferred tax liabilities				990,754				1,086,498
Other non-current liabilities				403,440				444,265
Total non-current liabilities				7,196,208				7,169,224
Total liabilities				13,200,607				13,917,033
Equity:
Common stock				86,067				86,067
Capital surplus				185,495				185,453
Treasury stock				(328,309	)			(357,050	)
Retained earnings				9,539,133				9,766,346
Other components of equity				990,438				1,928,850
Equity attributable to owners of the parent				10,472,824				11,609,666
Non-controlling interests				299,722				301,194
Total equity				10,772,546				11,910,860
Total liabilities and equity			¥	23,973,153			¥	25,827,893

See accompanying notes to condensed consolidated interim financial statements.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

For the six months ended September 30, 2021 and 2022

				Yen (millions)
		Note		September 30, 2021			September 30, 2022
				unaudited			unaudited
Sales revenue		8		¥	6,988,228			¥	8,085,304
Operating costs and expenses:
Cost of sales				(5,561,775	)			(6,505,911	)
Selling, general and administrative				(625,603	)			(744,778	)
Research and development				(358,654	)			(381,163	)
Total operating costs and expenses				(6,546,032	)			(7,631,852	)
Operating profit				442,196				453,452
Share of profit of investments accounted for using the equity method				107,246				82,946
Finance income and finance costs:
Interest income				11,080				25,025
Interest expense				(6,428	)			(15,650	)
Other, net				6,302				(29,942	)
Total finance income and finance costs				10,954				(20,567	)
Profit before income taxes				560,396				515,831
Income tax expense				(151,795	)			(147,092	)
Profit for the period			¥	408,601			¥	368,739
Profit for the period attributable to:
Owners of the parent				389,209				338,514
Non-controlling interests				19,392				30,225
				Yen
				September 30, 2021			September 30, 2022
Earnings per share attributable to owners of the parent
Basic and diluted		11		¥	225.43			¥	198.08

See accompanying notes to condensed consolidated interim financial statements.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

For the six months ended September 30, 2021 and 2022

				Yen (millions)
		Note		September 30, 2021			September 30, 2022
				unaudited			unaudited
Profit for the period				¥	408,601			¥	368,739
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans				-				(11	)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income				58,018				(27,735	)
Share of other comprehensive income of investments accounted for using the equity method				1,320				(1,109	)
Items that may be reclassified subsequently to profit or loss
Net changes in revaluation of financial assets measured at fair value through other comprehensive income				(18	)			(893	)
Exchange differences on translating foreign operations				37,049				917,707
Share of other comprehensive income of investments accounted for using the equity method				26,676				69,148
Total other comprehensive income, net of tax				123,045				957,107
Comprehensive income for the period			¥	531,646			¥	1,325,846
Comprehensive income for the period attributable to:
Owners of the parent				514,720				1,276,881
Non-controlling interests				16,926				48,965

See accompanying notes to condensed consolidated interim financial statements.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Income

For the three months ended September 30, 2021 and 2022

				Yen (millions)
		Note		September 30, 2021			September 30, 2022
				unaudited			unaudited
Sales revenue		8		¥	3,404,358			¥	4,255,754
Operating costs and expenses:
Cost of sales				(2,715,355	)			(3,441,741	)
Selling, general and administrative				(308,589	)			(383,205	)
Research and development				(181,428	)			(199,572	)
Total operating costs and expenses				(3,205,372	)			(4,024,518	)
Operating profit				198,986				231,236
Share of profit of investments accounted for using the equity method				51,315				60,337
Finance income and finance costs:
Interest income				5,880				15,893
Interest expense				(3,503	)			(8,223	)
Other, net				(3,642	)			(20,816	)
Total finance income and finance costs				(1,265	)			(13,146	)
Profit before income taxes				249,036				278,427
Income tax expense				(78,155	)			(73,268	)
Profit for the period			¥	170,881			¥	205,159
Profit for the period attributable to:
Owners of the parent				166,697				189,295
Non-controlling interests				4,184				15,864
				Yen
				September 30, 2021			September 30, 2022
Earnings per share attributable to owners of the parent
Basic and diluted		11		¥	96.56			¥	110.85

See accompanying notes to condensed consolidated interim financial statements.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Comprehensive Income

For the three months ended September 30, 2021 and 2022

				Yen (millions)
		Note		September 30, 2021			September 30, 2022
				unaudited			unaudited
Profit for the period			¥	170,881			¥	205,159
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans				-				(8	)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income				(4,564	)			(40,167	)
Share of other comprehensive income of investments accounted for using the equity method				372				(665	)
Items that may be reclassified subsequently to profit or loss
Net changes in revaluation of financial assets measured at fair value through other comprehensive income				(48	)			(557	)
Exchange differences on translating foreign operations				7,739				268,761
Share of other comprehensive income of investments accounted for using the equity method				7,368				22,592
Total other comprehensive income, net of tax				10,867				249,956
Comprehensive income for the period			¥	181,748			¥	455,115
Comprehensive income for the period attributable to:
Owners of the parent				178,448				435,831
Non-controlling interests				3,300				19,284

See accompanying notes to condensed consolidated interim financial statements.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Changes in Equity

For the six months ended September 30, 2021 and 2022

					Yen (millions)
					Equity attributable to owners of the parent
		Note			Common stock			Capital surplus			Treasury stock			Retained earnings			Other components of equity			Total			Non-controlling interests			Total equity
Balance as of April 1, 2021 (unaudited)			¥	86,067			¥	172,049			¥	(273,786	)		¥	8,901,266			¥	196,710			¥	9,082,306			¥	290,533			¥	9,372,839
Comprehensive income for the period
Profit for the period							389,209					389,209				19,392				408,601
Other comprehensive income, net of tax								125,511				125,511				(2,466	)			123,045
Total comprehensive income for the period							389,209				125,511				514,720				16,926				531,646
Reclassification to retained earnings							(92	)			92				-					-
Transactions with owners and other
Dividends paid			12							(93,272	)				(93,272	)			(39,975	)			(133,247	)
Purchases of treasury stock						(19,470	)					(19,470	)				(19,470	)
Disposal of treasury stock						443						443					443
Share-based payment transactions					(267	)						(267	)				(267	)
Equity transactions and others					13,720				7,656						21,376				(21,384	)			(8	)
Total transactions with owners and other					13,453				(11,371	)			(93,272	)				(91,190	)			(61,359	)			(152,549	)
Balance as of September 30, 2021 (unaudited)			¥	86,067			¥	185,502			¥	(285,157	)		¥	9,197,111			¥	322,313			¥	9,505,836			¥	246,100			¥	9,751,936
					Yen (millions)
					Equity attributable to owners of the parent
		Note			Common stock			Capital surplus			Treasury stock			Retained earnings			Other components of equity			Total			Non-controlling interests			Total equity
Balance as of April 1, 2022 (unaudited)			¥	86,067			¥	185,495			¥	(328,309	)		¥	9,539,133			¥	990,438			¥	10,472,824			¥	299,722			¥	10,772,546
Comprehensive income for the period
Profit for the period							338,514					338,514				30,225				368,739
Other comprehensive income, net of tax								938,367				938,367				18,740				957,107
Total comprehensive income for the period							338,514				938,367				1,276,881				48,965				1,325,846
Reclassification to retained earnings							(45	)			45				-					-
Transactions with owners and other
Dividends paid			12							(111,256	)				(111,256	)			(47,493	)			(158,749	)
Purchases of treasury stock						(29,004	)					(29,004	)				(29,004	)
Disposal of treasury stock						263						263					263
Share-based payment transactions					(42	)						(42	)				(42	)
Total transactions with owners and other					(42	)			(28,741	)			(111,256	)				(140,039	)			(47,493	)			(187,532	)
Balance as of September 30, 2022 (unaudited)			¥	86,067			¥	185,453			¥	(357,050	)		¥	9,766,346			¥	1,928,850			¥	11,609,666			¥	301,194			¥	11,910,860

See accompanying notes to condensed consolidated interim financial statements.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Condensed Consolidated Statements of Cash Flows

For the six months ended September 30, 2021 and 2022

					Yen (millions)
		Note			September 30, 2021			September 30, 2022
					unaudited			unaudited
Cash flows from operating activities:
Profit before income taxes						¥	560,396			¥	515,831
Depreciation, amortization and impairment losses excluding equipment on operating leases				307,990				357,304
Share of profit of investments accounted for using the equity method				(107,246	)			(82,946	)
Finance income and finance costs, net				(21,478	)			(69,589	)
Interest income and interest costs from financial services, net				(79,985	)			(75,593	)
Changes in assets and liabilities
Trade receivables				137,863				32,586
Inventories				(204,437	)			(129,729	)
Trade payables				(212,422	)			(49,839	)
Accrued expenses				(136,849	)			(62,296	)
Provisions and retirement benefit liabilities				(118,571	)			(8,720	)
Receivables from financial services				148,032				302,319
Equipment on operating leases				(101,068	)			493,778
Other assets and liabilities				28,415				165,071
Other, net				(5,829	)			1,465
Dividends received				101,140				131,572
Interest received				118,940				143,741
Interest paid				(45,457	)			(68,304	)
Income taxes paid, net of refunds				(71,348	)			(255,317	)
Net cash provided by operating activities				298,086				1,341,334
Cash flows from investing activities:
Payments for additions to property, plant and equipment				(140,739	)			(249,421	)
Payments for additions to and internally developed intangible assets				(81,649	)			(76,441	)
Proceeds from sales of property, plant and equipment and intangible assets				6,554				13,623
Payments for acquisitions of investments accounted for using the equity method				-				(10,340	)
Payments for acquisitions of other financial assets				(221,150	)			(322,025	)
Proceeds from sales and redemptions of other financial assets				210,274				215,952
Net cash used in investing activities				(226,710	)			(428,652	)
Cash flows from financing activities:
Proceeds from short-term financing liabilities				4,096,198				4,219,027
Repayments of short-term financing liabilities				(4,232,433	)			(4,152,744	)
Proceeds from long-term financing liabilities				943,620				362,289
Repayments of long-term financing liabilities				(830,634	)			(1,165,699	)
Dividends paid to owners of the parent				(93,272	)			(111,256	)
Dividends paid to non-controlling interests				(38,155	)			(36,752	)
Purchases and sales of treasury stock, net				(19,027	)			(28,741	)
Repayments of lease liabilities				(38,988	)			(38,890	)
Other, net				(2	)			-
Net cash used in financing activities				(212,693	)			(952,766	)
Effect of exchange rate changes on cash and cash equivalents				2,574				300,501
Net change in cash and cash equivalents				(138,743	)			260,417
Cash and cash equivalents at beginning of year				2,758,020				3,674,931
Cash and cash equivalents at end of period			¥	2,619,277			¥	3,935,348

See accompanying notes to condensed consolidated interim financial statements.

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1

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(1) Reporting Entity

Honda Motor Co., Ltd. (the "Company") is a public company domiciled in Japan. The Company and its subsidiaries (collectively "Honda") develop, manufacture and distribute motorcycles, automobiles, power products and others throughout the world, and also provide financial services to customers and dealers for the sale of those products. Principal manufacturing facilities are located in Japan, the United States of America, Canada, Mexico, Italy, France, China, India, Indonesia, Malaysia, Philippines, Thailand, Vietnam, Argentina and Brazil.

(2) Basis of Preparation

(a) Compliance with Interim Financial Reporting Standards

The condensed consolidated interim financial statements of the Company have been prepared in accordance with IAS 34 "Interim Financial Reporting". The condensed consolidated interim financial statements should be read in conjunction with the Company's consolidated financial statements for the fiscal year ended March 31, 2022, since the condensed consolidated interim financial statements do not include all the information required in the annual consolidated financial statements, which have been prepared in accordance with International Financial Reporting Standards ("IFRS") as issued by the International Accounting Standards Board.

(b) Functional Currency and Presentation Currency

The condensed consolidated interim financial statements are presented in Japanese yen, which is the functional currency of the Company. All financial information presented in Japanese yen has been rounded to the nearest million Japanese yen, except when otherwise indicated.

(c) Use of Estimates and Judgments

The preparation of condensed consolidated interim financial statements requires management to make judgments, estimates and assumptions that affect the application of accounting policies, the reported amount of assets, liabilities, revenues and expenses, and the disclosure of contingent assets and liabilities. Actual results could differ from these estimates. These estimates and underlying assumptions are reviewed on a continuous basis. Changes in these accounting estimates are recognized in the period in which the estimates are revised and in any future periods affected.

The condensed consolidated interim financial statements are prepared based on the same judgments and estimations as those applied and described in the Company's consolidated financial statements for the fiscal year ended March 31, 2022.

(3) Summary of Significant Accounting Policies

The condensed consolidated interim financial statements are prepared based on the same accounting policies as those applied and described in the Company's consolidated financial statements for the fiscal year ended March 31, 2022.

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2

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(4) Segment Information

Based on Honda's organizational structure and characteristics of products and services, Honda discloses segment information in four categories: Reportable segments of Motorcycle business, Automobile business and Financial services business, and other segments that are not reportable. The other segments are combined and disclosed in Power product and other businesses. Segment information is based on 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 segment information are consistent with the accounting policies used in the Company's condensed consolidated interim 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), side-by-sides (SxS) 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

Explanatory note:

*	Life creation business has been renamed Power product business as a result of organizational changes effective April 1, 2022.

(a) Segment Information

Segment information as of and for the six months ended September 30, 2021 and 2022 is as follows:

As of and for the six months ended September 30, 2021

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Segment Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	1,023,730			¥	4,335,269			¥	1,442,558			¥	186,671			¥	6,988,228			¥	-			¥	6,988,228
Intersegment			-				99,655				1,290				11,033				111,978				(111,978	)			-
Total			1,023,730				4,434,924				1,443,848				197,704				7,100,206				(111,978	)			6,988,228
Segment profit (loss)		¥	148,137			¥	117,104			¥	176,814			¥	141			¥	442,196			¥	-			¥	442,196
Segment assets		¥	1,379,823			¥	8,446,421			¥	10,902,969			¥	357,978			¥	21,087,191			¥	817,075			¥	21,904,266
Depreciation and amortization			33,325				263,951				438,425				8,414				744,115				-				744,115
Capital expenditures			17,337				191,267				1,220,048				7,402				1,436,054				-				1,436,054

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

As of and for the six months ended September 30, 2022

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Segment Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	1,412,682			¥	4,920,192			¥	1,527,915			¥	224,515			¥	8,085,304			¥	-			¥	8,085,304
Intersegment			-				83,742				1,181				11,575				96,498				(96,498	)			-
Total			1,412,682				5,003,934				1,529,096				236,090				8,181,802				(96,498	)			8,085,304
Segment profit (loss)		¥	224,775			¥	63,568			¥	153,049			¥	12,060			¥	453,452			¥	-			¥	453,452
Segment assets		¥	1,614,071			¥	10,241,643			¥	12,041,882			¥	469,044			¥	24,366,640			¥	1,461,253			¥	25,827,893
Depreciation and amortization			33,600				282,801				465,827				9,615				791,843				-				791,843
Capital expenditures			20,451				304,206				712,321				5,779				1,042,757				-				1,042,757

Segment information for the three months ended September 30, 2021 and 2022 is as follows:

For the three months ended September 30, 2021

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Segment Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	505,527			¥	2,128,833			¥	675,986			¥	94,012			¥	3,404,358			¥	-			¥	3,404,358
Intersegment			-				53,637				364				4,445				58,446				(58,446	)			-
Total			505,527				2,182,470				676,350				98,457				3,462,804				(58,446	)			3,404,358
Segment profit (loss)		¥	67,442			¥	46,415			¥	84,597			¥	532			¥	198,986			¥	-			¥	198,986

For the three months ended September 30, 2022

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Segment Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	736,632			¥	2,628,707			¥	778,531			¥	111,884			¥	4,255,754			¥	-			¥	4,255,754
Intersegment			-				47,056				502				5,169				52,727				(52,727	)			-
Total			736,632				2,675,763				779,033				117,053				4,308,481				(52,727	)			4,255,754
Segment profit (loss)		¥	126,946			¥	25,306			¥	74,248			¥	4,736			¥	231,236			¥	-			¥	231,236

Explanatory notes:

1.

Segment profit (loss) of each segment is measured in a consistent manner with consolidated operating profit, which is profit before income taxes before share of profit of investments accounted for using the equity method and finance income and finance costs. Expenses not directly associated with specific segments are allocated based on the most reasonable measures applicable.

2.

Segment assets of each segment are defined as total assets including investments accounted for using the equity method, derivatives, and deferred tax assets. Segment assets are based on those directly associated with each segment and those not directly associated with specific segments are allocated based on the most reasonable measures applicable except for the corporate assets described below.

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

4.

Reconciling items include elimination of intersegment transactions and balances as well as unallocated corporate assets. Unallocated corporate assets, included in reconciling items as of September 30, 2021 and 2022 amounted to ¥954,524 million and ¥1,569,670 million, respectively, which consist primarily of the Company's cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

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4

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(b) Supplemental Geographical Information

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

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

As of and for the six months ended September 30, 2021

		Yen (millions)
		Japan			North America			Europe			Asia			Other Regions			Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	1,106,802			¥	3,831,856			¥	318,011			¥	1,450,916			¥	280,643			¥	6,988,228			¥	-			¥	6,988,228
Inter-geographic areas			992,233				236,406				80,288				309,897				5,139				1,623,963				(1,623,963	)			-
Total			2,099,035				4,068,262				398,299				1,760,813				285,782				8,612,191				(1,623,963	)			6,988,228
Operating profit (loss)		¥	15,049			¥	279,456			¥	12,867			¥	133,867			¥	17,067			¥	458,306			¥	(16,110	)		¥	442,196
Assets		¥	5,042,889			¥	12,216,115			¥	535,349			¥	3,288,559			¥	517,500			¥	21,600,412			¥	303,854			¥	21,904,266
Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets		¥	3,022,583			¥	5,175,359			¥	57,248			¥	637,098			¥	135,257			¥	9,027,545			¥	-			¥	9,027,545
As of and for the six months ended September 30, 2022
		Yen (millions)
		Japan			North America			Europe			Asia			Other Regions			Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	1,144,602			¥	4,216,445			¥	305,943			¥	2,016,454			¥	401,860			¥	8,085,304			¥	-			¥	8,085,304
Inter-geographic areas			1,040,290				246,029				13,529				379,282				2,679				1,681,809				(1,681,809	)			-
Total			2,184,892				4,462,474				319,472				2,395,736				404,539				9,767,113				(1,681,809	)			8,085,304
Operating profit (loss)		¥	80,735			¥	144,015			¥	7,690			¥	202,740			¥	29,536			¥	464,716			¥	(11,264	)		¥	453,452
Assets		¥	5,226,252			¥	14,418,647			¥	597,755			¥	4,024,209			¥	682,278			¥	24,949,141			¥	878,752			¥	25,827,893
Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets		¥	2,959,919			¥	5,836,560			¥	47,990			¥	711,424			¥	181,839			¥	9,737,732			¥	-			¥	9,737,732
For the three months ended September 30, 2021
		Yen (millions)
		Japan			North America			Europe			Asia			Other Regions			Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	543,343			¥	1,846,104			¥	147,768			¥	721,421			¥	145,722			¥	3,404,358			¥	-			¥	3,404,358
Inter-geographic areas			479,841				114,429				26,283				162,109				3,270				785,932				(785,932	)			-
Total			1,023,184				1,960,533				174,051				883,530				148,992				4,190,290				(785,932	)			3,404,358
Operating profit (loss)		¥	13,320			¥	126,088			¥	2,868			¥	52,432			¥	14,453			¥	209,161			¥	(10,175	)		¥	198,986

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

For the three months ended September 30, 2022
		Yen (millions)
		Japan			North America			Europe			Asia			Other Regions			Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	609,572			¥	2,183,792			¥	145,207			¥	1,115,446			¥	201,737			¥	4,255,754			¥	-			¥	4,255,754
Inter-geographic areas			559,064				134,138				6,689				211,486				2,213				913,590				(913,590	)			-
Total			1,168,636				2,317,930				151,896				1,326,932				203,950				5,169,344				(913,590	)			4,255,754
Operating profit (loss)		¥	55,991			¥	52,997			¥	4,274			¥	116,266			¥	15,762			¥	245,290			¥	(14,054	)		¥	231,236

Explanatory notes:

1.	Major countries in each geographic area:

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

2.	Operating profit (loss) of each geographical region is measured in a consistent manner with consolidated operating profit, which is profit before income taxes before share of profit of investments accounted for using the equity method and finance income and finance costs.

3.	Assets of each geographical region are defined as total assets including investments accounted for using the equity method, derivatives, and deferred tax assets.

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

5.

Reconciling items include elimination of inter-geographic transactions and balances as well as unallocated corporate assets. Unallocated corporate assets, included in reconciling items as of September 30, 2021 and 2022 amounted to ¥954,524 million and ¥1,569,670 million, respectively, which consist primarily of the Company's cash and cash equivalents and financial assets measured at fair value through other comprehensive income.

(5) Equipment on Operating Leases

The additions to equipment on operating leases for the six months ended September 30, 2021 and 2022 are ¥1,218,678 million and ¥711,061 million, respectively.

The sales or disposals of equipment on operating leases for the six months ended September 30, 2021 and 2022 are ¥679,327 million and ¥740,391 million, respectively.

(6) Property, Plant and Equipment

The additions to property, plant and equipment for the six months ended September 30, 2021 and 2022 are ¥163,630 million and ¥274,667 million, respectively.

The sales or disposals of property, plant and equipment for the six months ended September 30, 2021 and 2022 are ¥17,464 million and ¥14,828 million, respectively.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(7) Provisions

The components of and changes in provisions for the six months ended September 30, 2022 are as follows:

		Yen (millions)
		Product warranties*			Other			Total
Balance as of April 1, 2022		¥	419,201			¥	102,812			¥	522,013
Provision		¥	79,360			¥	8,833			¥	88,193
Write-offs			(80,802	)			(17,285	)			(98,087	)
Reversal			(6,892	)			(6,808	)			(13,700	)
Exchange differences on translating foreign operations			40,882				13,519				54,401
Balance as of September 30, 2022		¥	451,749			¥	101,071			¥	552,820

Current liabilities and non-current liabilities of provisions as of March 31, 2022 and September 30, 2022 are as follows:

		Yen (millions)
		As of March 31, 2022			As of September 30, 2022
Current liabilities		¥	268,388			¥	287,019
Non-current liabilities			253,625				265,801
Total		¥	522,013			¥	552,820

Explanatory note:

*

Honda recognizes provisions for product warranties to cover future product warranty expenses. Honda recognizes costs for general warranties on products Honda sells and for specific warranty programs, including product recalls. Honda recognizes general estimated warranty costs at the time products are sold to customers. Honda also recognizes specific estimated warranty program 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. These provisions are estimated based on historical warranty claim experience with consideration given to the expected level of future warranty costs as well as current information on repair costs. Provisions for product warranties are utilized for expenditures based on the demand from customers and dealers.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(8) Sales Revenue

As stated in Note 4, Honda discloses segment information in four categories.

The sales revenue disaggregated by geographical markets based on the location of the customer and the reconciliation of the disaggregated revenue with each segment for the six months ended September 30, 2021 and 2022 are as follows:

For the six months ended September 30, 2021

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Total
Revenue arising from Contracts with Customers
Japan		¥	53,819			¥	622,315			¥	65,533			¥	34,383			¥	776,050
North America			114,332				2,418,363				681,622				79,064				3,293,381
Europe			112,986				171,356				-				34,443				318,785
Asia			579,029				984,207				13				27,644				1,590,893
Other Regions			163,199				134,661				-				11,035				308,895
Total		¥	1,023,365			¥	4,330,902			¥	747,168			¥	186,569			¥	6,288,004
Revenue arising from the other sources*			365				4,367				695,390				102				700,224
Total		¥	1,023,730			¥	4,335,269			¥	1,442,558			¥	186,671			¥	6,988,228
For the six months ended September 30, 2022
		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Total
Revenue arising from Contracts with Customers
Japan		¥	50,609			¥	622,096			¥	68,645			¥	43,229			¥	784,579
North America			143,651				2,684,546				724,347				95,677				3,648,221
Europe			93,701				166,712				-				43,151				303,564
Asia			870,930				1,264,033				9				28,675				2,163,647
Other Regions			253,604				178,516				-				13,659				445,779
Total		¥	1,412,495			¥	4,915,903			¥	793,001			¥	224,391			¥	7,345,790
Revenue arising from the other sources*			187				4,289				734,914				124				739,514
Total		¥	1,412,682			¥	4,920,192			¥	1,527,915			¥	224,515			¥	8,085,304

Explanatory note:

*	Revenue arising from the other sources primarily includes lease revenues recognized under IFRS 16 and interest recognized under IFRS 9.

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8

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

For the three months ended September 30, 2021

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Total
Revenue arising from Contracts with Customers
Japan		¥	27,608			¥	300,274			¥	24,041			¥	19,432			¥	371,355
North America			58,564				1,179,255				303,028				37,857				1,578,704
Europe			46,908				86,023				-				16,824				149,755
Asia			288,357				488,659				11				14,292				791,319
Other Regions			84,084				72,755				-				5,549				162,388
Total		¥	505,521			¥	2,126,966			¥	327,080			¥	93,954			¥	3,053,521
Revenue arising from the other sources*			6				1,867				348,906				58				350,837
Total		¥	505,527			¥	2,128,833			¥	675,986			¥	94,012			¥	3,404,358
For the three months ended September 30, 2022
		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Total
Revenue arising from Contracts with Customers
Japan		¥	25,606			¥	334,860			¥	36,554			¥	25,428			¥	422,448
North America			67,820				1,413,592				369,427				45,528				1,896,367
Europe			41,832				81,815				-				19,684				143,331
Asia			475,819				706,629				3				14,398				1,196,849
Other Regions			125,373				89,623				-				6,762				221,758
Total		¥	736,450			¥	2,626,519			¥	405,984			¥	111,800			¥	3,880,753
Revenue arising from the other sources*			182				2,188				372,547				84				375,001
Total		¥	736,632			¥	2,628,707			¥	778,531			¥	111,884			¥	4,255,754

Explanatory note:

*	Revenue arising from the other sources primarily includes lease revenues recognized under IFRS 16 and interest recognized under IFRS 9.

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9

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(9) Fair Value

(a) Definition of Fair Value Hierarchy

Honda uses a three-level hierarchy when measuring fair value. The following is a description of the three hierarchy levels:

Level 1		Quoted prices (unadjusted) in active markets for identical assets or liabilities that the Company has the ability to access as of the measurement date
Level 2		Inputs other than quoted prices included within Level 1 that are observable for the assets or liabilities, either directly or indirectly
Level 3		Unobservable inputs for the assets or liabilities

The level in the fair value hierarchy within which a fair value measurement in its entirety falls is based on the lowest input that is significant to the fair value measurement in its entirety. Honda recognizes the transfers between the levels of the fair value hierarchy at the end of the reporting period during which the change has occurred.

(b) Method of Fair Value Measurement

The fair values of assets and liabilities are determined based on relevant market information and through the use of an appropriate valuation method.

The measurement methods and assumptions used in the measurement of assets and liabilities are as follows:

(Cash and cash equivalents, trade receivables and trade payables)

The fair values approximate their carrying amounts due to their short-term maturities.

(Receivables from financial services)

The fair value of receivables from financial services is measured primarily by discounting future cash flows using the current interest rates applicable for these receivables of similar remaining maturities. Fair value measurement for receivables from financial services is classified as Level 3.

(Debt securities)

Debt securities consist mainly of mutual funds, corporate bonds, local bonds and auction rate securities.

The fair value of mutual funds with an active market is measured by using quoted market prices. Fair value measurement for mutual funds with an active market is classified as Level 1.

The fair values of corporate bonds and local bonds are measured based on proprietary pricing models provided by specialists and/or market makers and the models obtain a wide array of market observable inputs such as credit ratings and discount rates. Fair value measurements for corporate bonds and local bonds are classified as Level 2.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

The subsidiary's auction rate securities are A to AAA rated and are insured by qualified guarantee agencies, and reinsured by the Secretary of Education and the United States government, and guaranteed at approximately 95% by the United States government. To measure fair value of auction rate securities, Honda uses a third-party-developed valuation model which obtains a wide array of market observable inputs, as well as unobservable inputs including probability of passing or failing auction at each auction. Fair value measurement for auction rate securities is classified as Level 3.

(Equity securities)

The fair value of equity securities with an active market is measured by using quoted market prices. Fair value measurement for equity securities with an active market is classified as Level 1.

The fair value of equity securities with no active market is measured mainly by using a discounted cash flow method, a comparable company valuation method and other appropriate valuation methods. Fair value measurement for equity securities with no active market is classified as Level 3. In addition, in the case that cost represents the best estimate of fair value, fair value for the equity securities with no active market is measured at cost.

Cash flow forecasts and discount rate for the discounted cash flow model and price book-value ratio (PBR) of a comparable company for the comparable company valuation method are used as significant unobservable inputs in the fair value measurement of equity securities classified as Level 3. The fair value increases (decreases) as Cash flow forecasts increase (decrease), discount rate decline (rise) and PBR of a comparable company rise (decline). Such fair value measurements are conducted in accordance with the group accounting policy approved by the appropriate person of authority and based upon valuation methods determined by personnel in accounting divisions of Honda.

(Derivatives)

Derivatives consist mainly of foreign currency forward exchange contracts, foreign currency option contracts, currency swap agreements and interest rate swap agreements.

The fair values of foreign currency forward exchange contracts and foreign currency option contracts are measured by using market observable inputs such as spot exchange rates, discount rates and implied volatility. The fair values of currency swap agreements and interest rate swap agreements are measured by discounting future cash flows using market observable inputs such as interest rate benchmarks like U.S. dollar LIBOR, swap rates, and foreign exchange rates. Fair value measurements for these derivatives are classified as Level 2.

The credit risk of the counterparties is considered in the valuation of derivatives.

(Financing liabilities)

The fair value of financing liabilities is measured by discounting future cash flows using interest rates currently available for liabilities of similar terms and remaining maturities. Fair value measurement of financing liabilities is mainly classified as Level 2.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(c) Assets and Liabilities Measured at Fair Value on a recurring basis

Assets and liabilities measured at fair value on a recurring basis as of March 31, 2022 and September 30, 2022 consist of the following:

		Yen (millions)
As of March 31, 2022		Level 1			Level 2			Level 3			Total
Other financial assets:
Financial assets measured at fair value through profit or loss:
Derivatives
Foreign exchange instruments		¥	-			¥	15,674			¥	-			¥	15,674
Interest rate instruments			-				114,016				-				114,016
Other			-				-				4,648				4,648
Total			-				129,690				4,648				134,338
Debt securities			42,837				54,641				4,773				102,251
Financial assets measured at fair value through other comprehensive income:
Debt securities			-				19,984				-				19,984
Equity securities			335,745				-				133,038				468,783
Total		¥	378,582			¥	204,315			¥	142,459			¥	725,356
Other financial liabilities:
Financial liabilities measured at fair value through profit or loss:
Derivatives
Foreign exchange instruments		¥	-			¥	66,644			¥	-			¥	66,644
Interest rate instruments			-				83,669				-				83,669
Other			-				1,629				-				1,629
Total			-				151,942				-				151,942
Total		¥	-			¥	151,942			¥	-			¥	151,942

There were no transfers between Level 1 and Level 2 for the year ended March 31, 2022.

		Yen (millions)
As of September 30, 2022		Level 1			Level 2			Level 3			Total
Other financial assets:
Financial assets measured at fair value through profit or loss:
Derivatives
Foreign exchange instruments		¥	-			¥	63,112			¥	-			¥	63,112
Interest rate instruments			-				217,027				-				217,027
Other			-				-				5,948				5,948
Total			-				280,139				5,948				286,087
Debt securities			40,836				57,416				5,648				103,900
Financial assets measured at fair value through other comprehensive income:
Debt securities			-				26,225				-				26,225
Equity securities			295,261				-				155,562				450,823
Total		¥	336,097			¥	363,780			¥	167,158			¥	867,035
Other financial liabilities:
Financial liabilities measured at fair value through profit or loss:
Derivatives
Foreign exchange instruments		¥	-			¥	213,731			¥	-			¥	213,731
Interest rate instruments			-				181,132				-				181,132
Other			-				32				-				32
Total			-				394,895				-				394,895
Total		¥	-			¥	394,895			¥	-			¥	394,895

There were no transfers between Level 1 and Level 2 for the six months ended September 30, 2022.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

There were no significant effects of the measurements on profit or loss or other comprehensive income in Level 3 assets and liabilities measured at fair value on a recurring basis for the six months ended September 30, 2022.

(d) Financial Assets and Financial Liabilities measured at amortized cost

The carrying amounts and fair values of financial assets and financial liabilities measured at amortized cost as of March 31, 2022 and September 30, 2022 are as follows:

		Yen (millions)
		As of March 31, 2022			As of September 30, 2022
		Carrying amount			Fair value			Carrying amount			Fair value
Receivables from financial services		¥	5,434,496			¥	5,374,754			¥	5,920,561			¥	5,706,412
Debt securities			79,176				79,176				192,228				192,228
Financing liabilities			8,102,556				7,984,057				8,293,569				7,963,727

The table does not include financial assets and financial liabilities measured at amortized cost whose fair values approximate their carrying amounts.

(10) Contingent Liabilities

Claims and Lawsuits

Honda is subject to potential liability under various lawsuits and claims. Honda recognizes a provision for loss contingencies 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. Honda reviews these pending lawsuits and claims periodically and adjusts the amounts recognized for these contingent liabilities, if necessary, by considering the nature of lawsuits and claims, the progress of the case and the opinions of legal counsel.

With respect to product liability, personal injury claims or lawsuits, Honda believes that any judgment that may be recovered by any plaintiff for general and special damages and court costs will be adequately covered by Honda's insurance and provision. Punitive damages are claimed in certain of these lawsuits.

After consultation with legal counsel, and taking into account all known factors pertaining to existing lawsuits and claims, Honda believes that the ultimate outcome of such lawsuits and pending claims should not result in liability to Honda that would be likely to have an adverse material effect on its consolidated financial position or results of operations.

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.

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(11) Earnings Per Share

Earnings per share attributable to owners of the parent for the six months ended September 30, 2021 and 2022 are calculated based on the following information. There were no significant dilutive potential common shares outstanding for the six months ended September 30, 2021 and 2022.

		2021			2022
Profit for the period attributable to owners of the parent (millions of yen)		¥	389,209			¥	338,514
Weighted average number of common shares outstanding, basic (shares)			1,726,515,744				1,708,957,348
Basic earnings per share attributable to owners of the parent (yen)		¥	225.43			¥	198.08

Earnings per share attributable to owners of the parent for the three months ended September 30, 2021 and 2022 are calculated based on the following information. There were no significant dilutive potential common shares outstanding for the three months ended September 30, 2021 and 2022.

		2021			2022
Profit for the period attributable to owners of the parent (millions of yen)		¥	166,697			¥	189,295
Weighted average number of common shares outstanding, basic (shares)			1,726,411,255				1,707,725,187
Basic earnings per share attributable to owners of the parent (yen)		¥	96.56			¥	110.85

(12) Dividend

(a) Dividend payout

For the six months ended September 30, 2021

Resolution		The Board of Directors Meeting on May 14, 2021
Type of shares		Common shares
Total amount of dividends (millions of yen)		93,272
Dividend per share (yen)		54.00
Record date		March 31, 2021
Effective date		June 7, 2021

For the six months ended September 30, 2022

Resolution		The Board of Directors Meeting on May 13, 2022
Type of shares		Common shares
Total amount of dividends (millions of yen)		111,256
Dividend per share (yen)		65.00
Record date		March 31, 2022
Effective date		June 6, 2022

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HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(b) Dividends payable of which record date was in the six months ended September 30, 2022, effective after the period

Resolution		The Board of Directors Meeting on November 9, 2022
Type of shares		Common shares
Resource for dividend		Retained earnings
Total amount of dividends (millions of yen)		102,219
Dividend per share (yen)		60.00
Record date		September 30, 2022
Effective date		December 5, 2022

(13) Approval of Release of Condensed Consolidated Interim Financial Statements

The release of the condensed consolidated interim financial statements was approved by Toshihiro Mibe, Director, President and Representative Executive Officer and Kohei Takeuchi, Director, Executive Vice President and Representative Executive Officer and Chief Financial Officer on November 10, 2022.