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 nine months ended December 31, 2022 increased by 17.3%, to ¥12,523.4 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 9.3%, to ¥733.9 billion from the same period last year, due mainly to positive foreign currency effects, which was partially offset by decreased profit attributable to sales impacts. Profit before income taxes increased by 1.7%, to ¥859.3 billion from the same period last year. Profit for the period attributable to owners of the parent increased by 0.2%, to ¥583.1 billion from the same period last year.

Business Segments

Motorcycle Business

For the nine months ended December 31, 2021 and 2022

		Units (thousands)
		Honda Group Unit Sales*			Consolidated Unit Sales*
		Nine months ended Dec. 31, 2021			Nine months ended Dec. 31, 2022			Change			%			Nine months ended Dec. 31, 2021			Nine months ended Dec. 31, 2022			Change			%
Motorcycle Business			12,775				14,285				1,510				11.8				7,964				9,570				1,606				20.2
Japan			180				179				(1	)			(0.6	)			180				179				(1	)			(0.6	)
North America			332				339				7				2.1				332				339				7				2.1
Europe			240				223				(17	)			(7.1	)			240				223				(17	)			(7.1	)
Asia			10,902				12,310				1,408				12.9				6,091				7,595				1,504				24.7
Other Regions			1,121				1,234				113				10.1				1,121				1,234				113				10.1

*

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 37.5%, to ¥2,202.3 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 62.0%, to ¥376.5 billion from the same period last year, due mainly to an increase in profit attributable to sales impacts and price and cost impacts as well as positive foreign currency effects.

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Automobile Business

For the nine months ended December 31, 2021 and 2022

		Units (thousands)
		Honda Group Unit Sales*			Consolidated Unit Sales*
		Nine months ended Dec. 31, 2021			Nine months ended Dec. 31, 2022			Change			%			Nine months ended Dec. 31, 2021			Nine months ended Dec. 31, 2022			Change			%
Automobile Business			3,000				2,740				(260	)			(8.7	)			1,792				1,712				(80	)			(4.5	)
Japan			385				389				4				1.0				335				343				8				2.4
North America			978				860				(118	)			(12.1	)			978				860				(118	)			(12.1	)
Europe			76				63				(13	)			(17.1	)			76				63				(13	)			(17.1	)
Asia			1,465				1,341				(124	)			(8.5	)			307				359				52				16.9
Other Regions			96				87				(9	)			(9.4	)			96				87				(9	)			(9.4	)

*

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 15.8%, to ¥7,723.5 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 40.1%, to ¥112.9 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 6.9%, to ¥2,261.0 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 14.6%, to ¥220.3 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 nine months ended December 31, 2021 and 2022

		Units (thousands)
		Honda Group Unit Sales / Consolidated Unit Sales*
		Nine months ended Dec. 31, 2021			Nine months ended Dec. 31, 2022			Change			%
Power Product Business			4,500				4,121				(379	)			(8.4	)
Japan			266				267				1				0.4
North America			2,092				1,724				(368	)			(17.6	)
Europe			762				773				11				1.4
Asia			1,073				1,047				(26	)			(2.4	)
Other Regions			307				310				3				1.0

*

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 15.3%, to ¥336.4 billion from the same period last year, due mainly to positive foreign currency translation effects. Operating profit was ¥24.1 billion, an increase of ¥31.5 billion from the same period last year, due mainly to increased profit attributable to sales impacts as well as positive foreign currency effects. In addition, operating loss of aircraft and aircraft engines included in Power product and other businesses was ¥18.6 billion, an improvement of ¥4.9 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 December 31, 2022 decreased by ¥79.8 billion from March 31, 2022, to ¥3,595.0 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 ¥1,712.7 billion of cash inflows. Cash inflows from operating activities increased by ¥764.9 billion from the same period last year, due mainly to increased cash received from customers, which was partially offset by increased payments for parts and raw materials.

Net cash used in investing activities amounted to ¥584.6 billion of cash outflows. Cash outflows from investing activities increased by ¥202.9 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 ¥1,318.8 billion of cash outflows. Cash outflows from financing activities increased by ¥626.6 billion from the same period last year, due mainly to an increase in repayments of financing liabilities as well as dividends paid.

Research and Development

The changes in research and development activities by Honda and its subsidiaries for the nine months ended December 31, 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 December 31, 2022

					Yen (millions)
Assets		Note			March 31, 2022			December 31, 2022
					unaudited			unaudited
Current assets:
Cash and cash equivalents			¥	3,674,931			¥	3,595,087
Trade receivables				896,768				839,340
Receivables from financial services				1,694,113				1,797,630
Other financial assets				217,743				382,727
Inventories				1,918,548				2,111,587
Other current assets				439,322				363,750
Total current assets				8,841,425				9,090,121
Non-current assets:
Investments accounted for using the equity method				967,404				963,507
Receivables from financial services				3,740,383				3,808,031
Other financial assets				819,654				854,897
Equipment on operating leases			5				5,159,129				4,816,342
Property, plant and equipment			6				3,079,407				3,177,995
Intangible assets				849,507				870,116
Deferred tax assets				91,592				98,882
Other non-current assets				424,652				462,700
Total non-current assets				15,131,728				15,052,470
Total assets			¥	23,973,153			¥	24,142,591
					Yen (millions)
Liabilities and Equity		Note			March 31, 2022			December 31, 2022
					unaudited			unaudited
Current liabilities:
Trade payables			¥	1,236,233			¥	1,159,084
Financing liabilities				3,118,304				3,284,843
Accrued expenses				375,601				353,250
Other financial liabilities				236,900				363,636
Income taxes payable				96,116				91,947
Provisions			7				268,388				251,672
Other current liabilities				672,857				666,026
Total current liabilities				6,004,399				6,170,458
Non-current liabilities:
Financing liabilities				4,984,252				4,370,308
Other financial liabilities				282,083				291,652
Retirement benefit liabilities				282,054				290,351
Provisions			7				253,625				246,611
Deferred tax liabilities				990,754				942,800
Other non-current liabilities				403,440				427,347
Total non-current liabilities				7,196,208				6,569,069
Total liabilities				13,200,607				12,739,527
Equity:
Common stock				86,067				86,067
Capital surplus				185,495				185,579
Treasury stock				(328,309	)			(418,051	)
Retained earnings				9,539,133				9,908,565
Other components of equity				990,438				1,338,798
Equity attributable to owners of the parent				10,472,824				11,100,958
Non-controlling interests				299,722				302,106
Total equity				10,772,546				11,403,064
Total liabilities and equity			¥	23,973,153			¥	24,142,591

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 nine months ended December 31, 2021 and 2022

				Yen (millions)
		Note		December 31, 2021			December 31, 2022
				unaudited			unaudited
Sales revenue		8		¥	10,677,013			¥	12,523,490
Operating costs and expenses:
Cost of sales				(8,486,750	)			(10,045,494	)
Selling, general and administrative				(955,247	)			(1,142,140	)
Research and development				(563,371	)			(601,913	)
Total operating costs and expenses				(10,005,368	)			(11,789,547	)
Operating profit				671,645				733,943
Share of profit of investments accounted for using the equity method				157,034				148,887
Finance income and finance costs:
Interest income				18,737				48,023
Interest expense				(9,669	)			(25,214	)
Other, net				7,491				(46,262	)
Total finance income and finance costs				16,559				(23,453	)
Profit before income taxes				845,238				859,377
Income tax expense				(229,035	)			(225,503	)
Profit for the period			¥	616,203			¥	633,874
Profit for the period attributable to:
Owners of the parent				582,169				583,169
Non-controlling interests				34,034				50,705
				Yen
				December 31, 2021			December 31, 2022
Earnings per share attributable to owners of the parent
Basic and diluted		11		¥	337.92			¥	342.38

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 nine months ended December 31, 2021 and 2022

				Yen (millions)
		Note		December 31, 2021			December 31, 2022
				unaudited			unaudited
Profit for the period				¥	616,203			¥	633,874
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans				-				(12	)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income				78,760				(34,472	)
Share of other comprehensive income of investments accounted for using the equity method				113				(1,428	)
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				(97	)			(817	)
Exchange differences on translating foreign operations				219,152				345,693
Share of other comprehensive income of investments accounted for using the equity method				43,385				41,495
Total other comprehensive income, net of tax				341,313				350,459
Comprehensive income for the period			¥	957,516			¥	984,333
Comprehensive income for the period attributable to:
Owners of the parent				918,110				931,267
Non-controlling interests				39,406				53,066

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 December 31, 2021 and 2022

				Yen (millions)
		Note		December 31, 2021			December 31, 2022
				unaudited			unaudited
Sales revenue		8		¥	3,688,785			¥	4,438,186
Operating costs and expenses:
Cost of sales				(2,924,975	)			(3,539,583	)
Selling, general and administrative				(329,644	)			(397,362	)
Research and development				(204,717	)			(220,750	)
Total operating costs and expenses				(3,459,336	)			(4,157,695	)
Operating profit				229,449				280,491
Share of profit of investments accounted for using the equity method				49,788				65,941
Finance income and finance costs:
Interest income				7,657				22,998
Interest expense				(3,241	)			(9,564	)
Other, net				1,189				(16,320	)
Total finance income and finance costs				5,605				(2,886	)
Profit before income taxes				284,842				343,546
Income tax expense				(77,240	)			(78,411	)
Profit for the period			¥	207,602			¥	265,135
Profit for the period attributable to:
Owners of the parent				192,960				244,655
Non-controlling interests				14,642				20,480
				Yen
				December 31, 2021			December 31, 2022
Earnings per share attributable to owners of the parent
Basic and diluted		11		¥	112.42			¥	144.49

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 December 31, 2021 and 2022

				Yen (millions)
		Note		December 31, 2021			December 31, 2022
				unaudited			unaudited
Profit for the period				¥	207,602			¥	265,135
Other comprehensive income, net of tax:
Items that will not be reclassified to profit or loss
Remeasurements of defined benefit plans				-				(1	)
Net changes in revaluation of financial assets measured at fair value through other comprehensive income				20,742				(6,737	)
Share of other comprehensive income of investments accounted for using the equity method				(1,207	)			(319	)
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				(79	)			76
Exchange differences on translating foreign operations				182,103				(572,014	)
Share of other comprehensive income of investments accounted for using the equity method				16,709				(27,653	)
Total other comprehensive income, net of tax				218,268				(606,648	)
Comprehensive income for the period			¥	425,870			¥	(341,513	)
Comprehensive income for the period attributable to:
Owners of the parent				403,390				(345,614	)
Non-controlling interests				22,480				4,101

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 nine months ended December 31, 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							582,169					582,169				34,034				616,203
Other comprehensive income, net of tax								335,941				335,941				5,372				341,313
Total comprehensive income for the period							582,169				335,941				918,110				39,406				957,516
Reclassification to retained earnings							(39	)			39				-					-
Transactions with owners and other
Dividends paid			12							(188,402	)				(188,402	)			(43,148	)			(231,550	)
Purchases of treasury stock						(62,756	)					(62,756	)				(62,756	)
Disposal of treasury stock						442						442					442
Share-based payment transactions					(174	)						(174	)				(174	)
Equity transactions and others					13,679				7,657						21,336				(21,336	)			-
Total transactions with owners and other					13,505				(54,657	)			(188,402	)				(229,554	)			(64,484	)			(294,038	)
Balance as of December 31, 2021 (unaudited)			¥	86,067			¥	185,554			¥	(328,443	)		¥	9,294,994			¥	532,690			¥	9,770,862			¥	265,455			¥	10,036,317

					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							583,169					583,169				50,705				633,874
Other comprehensive income, net of tax								348,098				348,098				2,361				350,459
Total comprehensive income for the period							583,169				348,098				931,267				53,066				984,333
Reclassification to retained earnings							(262	)			262				-					-
Transactions with owners and other
Dividends paid			12							(213,475	)				(213,475	)			(50,682	)			(264,157	)
Purchases of treasury stock						(90,005	)					(90,005	)				(90,005	)
Disposal of treasury stock						263						263					263
Share-based payment transactions					84							84					84
Total transactions with owners and other					84				(89,742	)			(213,475	)				(303,133	)			(50,682	)			(353,815	)
Balance as of December 31, 2022 (unaudited)			¥	86,067			¥	185,579			¥	(418,051	)		¥	9,908,565			¥	1,338,798			¥	11,100,958			¥	302,106			¥	11,403,064

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 nine months ended December 31, 2021 and 2022

					Yen (millions)
		Note			December 31, 2021			December 31, 2022
					unaudited			unaudited
Cash flows from operating activities:
Profit before income taxes						¥	845,238			¥	859,377
Depreciation, amortization and impairment losses excluding equipment on operating leases				457,989				536,890
Share of profit of investments accounted for using the equity method				(157,034	)			(148,887	)
Finance income and finance costs, net				(42,769	)			(62,159	)
Interest income and interest costs from financial services, net				(119,818	)			(113,821	)
Changes in assets and liabilities
Trade receivables				100,704				65,377
Inventories				(200,804	)			(118,123	)
Trade payables				(58,880	)			(122,455	)
Accrued expenses				(136,753	)			(40,187	)
Provisions and retirement benefit liabilities				(131,115	)			(42,037	)
Receivables from financial services				321,333				191,359
Equipment on operating leases				620				653,490
Other assets and liabilities				(35,454	)			109,352
Other, net				(7,053	)			(4,953	)
Dividends received				110,049				147,089
Interest received				179,173				230,642
Interest paid				(69,296	)			(102,890	)
Income taxes paid, net of refunds				(108,326	)			(325,308	)
Net cash provided by operating activities				947,804				1,712,756
Cash flows from investing activities:
Payments for additions to property, plant and equipment				(198,762	)			(386,751	)
Payments for additions to and internally developed intangible assets				(126,575	)			(120,711	)
Proceeds from sales of property, plant and equipment and intangible assets				16,057				14,740
Payments for acquisitions of investments accounted for using the equity method				-				(10,340	)
Payments for acquisitions of other financial assets				(409,524	)			(468,123	)
Proceeds from sales and redemptions of other financial assets				337,025				386,494
Net cash used in investing activities				(381,779	)			(584,691	)
Cash flows from financing activities:
Proceeds from short-term financing liabilities				5,863,983				6,782,961
Repayments of short-term financing liabilities				(6,106,635	)			(6,364,866	)
Proceeds from long-term financing liabilities				1,229,804				482,029
Repayments of long-term financing liabilities				(1,328,446	)			(1,817,099	)
Dividends paid to owners of the parent				(188,402	)			(213,475	)
Dividends paid to non-controlling interests				(41,722	)			(40,214	)
Purchases and sales of treasury stock, net				(62,314	)			(89,742	)
Repayments of lease liabilities				(58,406	)			(58,406	)
Net cash used in financing activities				(692,138	)			(1,318,812	)
Effect of exchange rate changes on cash and cash equivalents				58,544				110,903
Net change in cash and cash equivalents				(67,569	)			(79,844	)
Cash and cash equivalents at beginning of year				2,758,020				3,674,931
Cash and cash equivalents at end of period			¥	2,690,451			¥	3,595,087

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 nine months ended December 31, 2021 and 2022 is as follows:

As of and for the nine months ended December 31, 2021

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Segment Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	1,602,096			¥	6,668,657			¥	2,114,335			¥	291,925			¥	10,677,013			¥	-			¥	10,677,013
Intersegment			-				155,020				2,124				17,041				174,185				(174,185	)			-
Total			1,602,096				6,823,677				2,116,459				308,966				10,851,198				(174,185	)			10,677,013
Segment profit (loss)		¥	232,395			¥	188,547			¥	258,149			¥	(7,446	)		¥	671,645			¥	-			¥	671,645
Segment assets		¥	1,465,871			¥	8,795,380			¥	10,914,940			¥	385,776			¥	21,561,967			¥	687,812			¥	22,249,779
Depreciation and amortization			49,127				381,128				661,252				12,728				1,104,235				-				1,104,235
Capital expenditures			30,189				287,082				1,639,003				10,501				1,966,775				-				1,966,775

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3

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

As of and for the nine months ended December 31, 2022

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Segment Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	2,202,355			¥	7,723,596			¥	2,261,049			¥	336,490			¥	12,523,490			¥	-			¥	12,523,490
Intersegment			-				135,426				1,653				20,389				157,468				(157,468	)			-
Total			2,202,355				7,859,022				2,262,702				356,879				12,680,958				(157,468	)			12,523,490
Segment profit (loss)		¥	376,535			¥	112,934			¥	220,371			¥	24,103			¥	733,943			¥	-			¥	733,943
Segment assets		¥	1,549,384			¥	9,754,332			¥	11,120,960			¥	465,635			¥	22,890,311			¥	1,252,280			¥	24,142,591
Depreciation and amortization			49,966				440,624				695,034				13,906				1,199,530				-				1,199,530
Capital expenditures			33,651				500,630				1,125,920				8,987				1,669,188				-				1,669,188

Segment information for the three months ended December 31, 2021 and 2022 is as follows:

For the three months ended December 31, 2021

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Segment Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	578,366			¥	2,333,388			¥	671,777			¥	105,254			¥	3,688,785			¥	-			¥	3,688,785
Intersegment			-				55,365				834				6,008				62,207				(62,207	)			-
Total			578,366				2,388,753				672,611				111,262				3,750,992				(62,207	)			3,688,785
Segment profit (loss)		¥	84,258			¥	71,443			¥	81,335			¥	(7,587	)		¥	229,449			¥	-			¥	229,449

For the three months ended December 31, 2022

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Segment Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	789,673			¥	2,803,404			¥	733,134			¥	111,975			¥	4,438,186			¥	-			¥	4,438,186
Intersegment			-				51,684				472				8,814				60,970				(60,970	)			-
Total			789,673				2,855,088				733,606				120,789				4,499,156				(60,970	)			4,438,186
Segment profit (loss)		¥	151,760			¥	49,366			¥	67,322			¥	12,043			¥	280,491			¥	-			¥	280,491

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 December 31, 2021 and 2022 amounted to ¥847,711 million and ¥1,418,600 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 nine months ended December 31, 2021

		Yen (millions)
		Japan			North America			Europe			Asia			Other Regions			Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	1,713,992			¥	5,681,155			¥	440,255			¥	2,400,719			¥	440,892			¥	10,677,013			¥	-			¥	10,677,013
Inter-geographic areas			1,506,703				341,172				89,067				491,398				7,479				2,435,819				(2,435,819	)			-
Total			3,220,695				6,022,327				529,322				2,892,117				448,371				13,112,832				(2,435,819	)			10,677,013
Operating profit (loss)		¥	26,663			¥	414,075			¥	17,764			¥	232,250			¥	18,642			¥	709,394			¥	(37,749	)		¥	671,645
Assets		¥	5,250,120			¥	12,310,903			¥	553,219			¥	3,491,191			¥	505,794			¥	22,111,227			¥	138,552			¥	22,249,779
Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets		¥	3,006,685			¥	5,196,501			¥	55,887			¥	667,201			¥	133,948			¥	9,060,222			¥	-			¥	9,060,222

As of and for the nine months ended December 31, 2022

		Yen (millions)
		Japan			North America			Europe			Asia			Other Regions			Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	1,782,790			¥	6,579,359			¥	462,650			¥	3,087,127			¥	611,564			¥	12,523,490			¥	-			¥	12,523,490
Inter-geographic areas			1,637,726				378,038				20,632				590,728				4,153				2,631,277				(2,631,277	)			-
Total			3,420,516				6,957,397				483,282				3,677,855				615,717				15,154,767				(2,631,277	)			12,523,490
Operating profit (loss)		¥	117,535			¥	242,296			¥	10,743			¥	319,044			¥	45,786			¥	735,404			¥	(1,461	)		¥	733,943
Assets		¥	5,343,485			¥	13,068,508			¥	626,675			¥	3,705,885			¥	640,052			¥	23,384,605			¥	757,986			¥	24,142,591
Non-current assets other than financial instruments, deferred tax assets and net defined benefit assets		¥	2,936,517			¥	5,296,689			¥	46,749			¥	674,213			¥	170,065			¥	9,124,233			¥	-			¥	9,124,233

For the three months ended December 31, 2021

		Yen (millions)
		Japan			North America			Europe			Asia			Other Regions			Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	607,190			¥	1,849,299			¥	122,244			¥	949,803			¥	160,249			¥	3,688,785			¥	-			¥	3,688,785
Inter-geographic areas			514,470				104,766				8,779				181,501				2,340				811,856				(811,856	)			-
Total			1,121,660				1,954,065				131,023				1,131,304				162,589				4,500,641				(811,856	)			3,688,785
Operating profit (loss)		¥	11,614			¥	134,619			¥	4,897			¥	98,383			¥	1,575			¥	251,088			¥	(21,639	)		¥	229,449

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5

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

For the three months ended December 31, 2022

		Yen (millions)
		Japan			North America			Europe			Asia			Other Regions			Total			Reconciling Items			Consolidated
Sales revenue:
External customers		¥	638,188			¥	2,362,914			¥	156,707			¥	1,070,673			¥	209,704			¥	4,438,186			¥	-			¥	4,438,186
Inter-geographic areas			597,436				132,009				7,103				211,446				1,474				949,468				(949,468	)			-
Total			1,235,624				2,494,923				163,810				1,282,119				211,178				5,387,654				(949,468	)			4,438,186
Operating profit (loss)		¥	36,800			¥	98,281			¥	3,053			¥	116,304			¥	16,250			¥	270,688			¥	9,803			¥	280,491

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 December 31, 2021 and 2022 amounted to ¥847,711 million and ¥1,418,600 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 nine months ended December 31, 2021 and 2022 are ¥1,636,938 million and ¥1,123,373 million, respectively.

The sales or disposals of equipment on operating leases for the nine months ended December 31, 2021 and 2022 are ¥976,175 million and ¥1,081,513 million, respectively.

(6) Property, Plant and Equipment

The additions to property, plant and equipment for the nine months ended December 31, 2021 and 2022 are ¥242,976 million and ¥454,203 million, respectively.

The sales or disposals of property, plant and equipment for the nine months ended December 31, 2021 and 2022 are ¥21,982 million and ¥21,394 million, respectively.

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6

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(7) Provisions

The components of and changes in provisions for the nine months ended December 31, 2022 are as follows:

		Yen (millions)
		Product warranties*			Other			Total
Balance as of April 1, 2022		¥	419,201			¥	102,812			¥	522,013
Provision		¥	103,951			¥	13,442			¥	117,393
Write-offs			(118,934	)			(20,280	)			(139,214	)
Reversal			(17,102	)			(7,055	)			(24,157	)
Exchange differences on translating foreign operations			16,596				5,652				22,248
Balance as of December 31, 2022		¥	403,712			¥	94,571			¥	498,283

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

		Yen (millions)
		As of March 31, 2022			As of December 31, 2022
Current liabilities		¥	268,388			¥	251,672
Non-current liabilities			253,625				246,611
Total		¥	522,013			¥	498,283

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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7

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 nine months ended December 31, 2021 and 2022 are as follows:

For the nine months ended December 31, 2021

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Total
Revenue arising from Contracts with Customers
Japan		¥	78,716			¥	964,125			¥	100,930			¥	56,945			¥	1,200,716
North America			176,848				3,610,940				970,204				117,671				4,875,663
Europe			149,675				238,051				-				51,988				439,714
Asia			942,846				1,636,675				30				47,379				2,626,930
Other Regions			252,477				212,109				-				17,807				482,393
Total		¥	1,600,562			¥	6,661,900			¥	1,071,164			¥	291,790			¥	9,625,416
Revenue arising from the other sources*			1,534				6,757				1,043,171				135				1,051,597
Total		¥	1,602,096			¥	6,668,657			¥	2,114,335			¥	291,925			¥	10,677,013

For the nine months ended December 31, 2022

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Total
Revenue arising from Contracts with Customers
Japan		¥	79,920			¥	987,604			¥	110,492			¥	70,315			¥	1,248,331
North America			220,528				4,318,570				1,047,600				137,927				5,724,625
Europe			155,111				249,547				-				63,518				468,176
Asia			1,361,906				1,887,402				18				42,773				3,292,099
Other Regions			384,569				271,791				-				21,771				678,131
Total		¥	2,202,034			¥	7,714,914			¥	1,158,110			¥	336,304			¥	11,411,362
Revenue arising from the other sources*			321				8,682				1,102,939				186				1,112,128
Total		¥	2,202,355			¥	7,723,596			¥	2,261,049			¥	336,490			¥	12,523,490

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 December 31, 2021

		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Total
Revenue arising from Contracts with Customers
Japan		¥	24,897			¥	341,810			¥	35,397			¥	22,562			¥	424,666
North America			62,516				1,192,577				288,582				38,607				1,582,282
Europe			36,689				66,695				-				17,545				120,929
Asia			363,817				652,468				17				19,735				1,036,037
Other Regions			89,278				77,448				-				6,772				173,498
Total		¥	577,197			¥	2,330,998			¥	323,996			¥	105,221			¥	3,337,412
Revenue arising from the other sources*			1,169				2,390				347,781				33				351,373
Total		¥	578,366			¥	2,333,388			¥	671,777			¥	105,254			¥	3,688,785
For the three months ended December 31, 2022
		Yen (millions)
		Motorcycle Business			Automobile Business			Financial Services Business			Power Product and Other Businesses			Total
Revenue arising from Contracts with Customers
Japan		¥	29,311			¥	365,508			¥	41,847			¥	27,086			¥	463,752
North America			76,877				1,634,024				323,253				42,250				2,076,404
Europe			61,410				82,835				-				20,367				164,612
Asia			490,976				623,369				9				14,098				1,128,452
Other Regions			130,965				93,275				-				8,112				232,352
Total		¥	789,539			¥	2,799,011			¥	365,109			¥	111,913			¥	4,065,572
Revenue arising from the other sources*			134				4,393				368,025				62				372,614
Total		¥	789,673			¥	2,803,404			¥	733,134			¥	111,975			¥	4,438,186

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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10

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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11

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 December 31, 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 December 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		¥	-			¥	35,193			¥	-			¥	35,193
Interest rate instruments			-				190,880				-				190,880
Other			-				-				5,651				5,651
Total			-				226,073				5,651				231,724
Debt securities			40,872				53,485				5,175				99,532
Financial assets measured at fair value through other comprehensive income:
Debt securities			-				24,463				-				24,463
Equity securities			304,023				-				144,405				448,428
Total		¥	344,895			¥	304,021			¥	155,231			¥	804,147
Other financial liabilities:
Financial liabilities measured at fair value through profit or loss:
Derivatives
Foreign exchange instruments		¥	-			¥	117,936			¥	-			¥	117,936
Interest rate instruments			-				155,035				-				155,035
Other			-				5,611				-				5,611
Total			-				278,582				-				278,582
Total		¥	-			¥	278,582			¥	-			¥	278,582

There were no transfers between Level 1 and Level 2 for the nine months ended December 31, 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 nine months ended December 31, 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 December 31, 2022 are as follows:

		Yen (millions)
		As of March 31, 2022			As of December 31, 2022
		Carrying amount			Fair value			Carrying amount			Fair value
Receivables from financial services		¥	5,434,496			¥	5,374,754			¥	5,605,661			¥	5,404,739
Debt securities			79,176				79,176				148,185				148,185
Financing liabilities			8,102,556				7,984,057				7,655,151				7,375,672

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 nine months ended December 31, 2021 and 2022 are calculated based on the following information. There were no significant dilutive potential common shares outstanding for the nine months ended December 31, 2021 and 2022.

		2021			2022
Profit for the period attributable to owners of the parent (millions of yen)		¥	582,169			¥	583,169
Weighted average number of common shares outstanding, basic (shares)			1,722,778,664				1,703,286,169
Basic earnings per share attributable to owners of the parent (yen)		¥	337.92			¥	342.38

Earnings per share attributable to owners of the parent for the three months ended December 31, 2021 and 2022 are calculated based on the following information. There were no significant dilutive potential common shares outstanding for the three months ended December 31, 2021 and 2022.

		2021			2022
Profit for the period attributable to owners of the parent (millions of yen)		¥	192,960			¥	244,655
Weighted average number of common shares outstanding, basic (shares)			1,716,433,911				1,693,213,206
Basic earnings per share attributable to owners of the parent (yen)		¥	112.42			¥	144.49

(12) Dividend

Dividend payout

For the nine months ended December 31, 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

Resolution		The Board of Directors Meeting on November 5, 2021
Type of shares		Common shares
Total amount of dividends (millions of yen)		95,130
Dividend per share (yen)		55.00
Record date		September 30, 2021
Effective date		December 1, 2021

For the nine months ended December 31, 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

Resolution		The Board of Directors Meeting on November 9, 2022
Type of shares		Common shares
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

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14

HONDA MOTOR CO., LTD. AND SUBSIDIARIES

Notes to Condensed Consolidated Interim Financial Statements

(13) Subsequent Event

Acquisition of the Company's Own Shares

The Board of Directors of the Company, at its meeting held on February 10, 2023, resolved that the Company will acquire its own shares pursuant to Article 459, Paragraph 1 of the Company Law and Article 36 of the Company's Articles of Incorporation.

(a) Reason for acquisition of own shares

The Company will acquire its own shares for the purpose, among others, of improving efficiency of its capital structure and implementing a flexible capital strategy.

(b) Details of the acquisition

1) Class of shares to be acquired:

Shares of common stock

2) Total number of shares to be acquired:

Up to 25,000,000 shares (1.5 % of total number of issued shares (excluding treasury stock))

3) Total amount of shares to be acquired:

Up to 70,000 million yen

4) Period of acquisition:

Starting on February 13, 2023 and ending on April 30, 2023

5) Method of acquisition:

Market purchases on the Tokyo Stock Exchange

1.

Purchases through the Tokyo Stock Exchange Trading Network Off-Auction Own Share Repurchase Trading System (ToSTNeT-3)

2.

Market purchases based on a discretionary trading contract regarding acquisition of own shares

(14) 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 February 13, 2023.