No.1-7628
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE 13a-16 OR 15d-16
UNDER THE SECURITIES EXCHANGE ACT OF 1934
FOR THE MONTH OF October 2003
COMMISSION FILE NUMBER: 1-07628
HONDA GIKEN KOGYO KABUSHIKI KAISHA
(Name of registrant)
HONDA MOTOR CO., LTD.
(Translation of registrants name into English)
1-1, Minami-Aoyama 2-chome, Minato-ku, Tokyo 107-8556, Japan
(Address of principal executive officers)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F:
Form 20-F * Form 40-F
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):
Note: Regulation S-T Rule 101(b)(1) only permits the submission in paper of a Form 6-K if submitted solely to provide an attached annual report to security holders.
Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7):
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.
Yes No
If Yes is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b):82-
On October 3, 2003, Honda Motor Co., Ltd. announced that it developed the worlds first electronically controlled fuel injection system (Honda Programmed Fuel Injection, or PGM-FI) for use in 4-stroke, 50cc scooters. (Ref. #M03-37)
On October 10, 2003, Honda Motor Co., Ltd. announced the development of the Honda FC Stack, a remarkably compact, next-generation fuel cell stack that delivers high performance, yet operates at temperatures as low as -20°C (-4°F). (Ref. #A03-053)
On October 14, 2003, Honda Motor Co., Ltd. announced the lineup of vehicles to be displayed at the Japan Automobile Manufacturers Association, Inc. sponsored 37th Tokyo Motor Show which ran from Saturday, October 25th to Wednesday, November 5, 2003 at Makuhari Messe in Chiba, Japan. (Ref. #C03-076)
On October 15, 2003, Honda R&D Co., Ltd., Hondas research and development subsidiary, announced that it will expand Honda R&D Southeast Asia Co., Ltd., its motorcycle research center in Thailand, in order to enhance research and development of motorcycles in ASEAN region. (Ref. #C03-077)
On October 16, 2003, Honda Motor Co., Ltd. announced the upcoming release in Japan of the new Dio scooter, featuring an air-cooled, 4-stroke 50cc engine and striking new design. (Ref. #M03-040)
On October 17, 2003, Honda Motor Co., Ltd. announced the addition of the worlds first Congestion Prediction function to the companys exclusive InterNavi Premium Club service. (Ref. #A03-056)
On October 17, 2003, Honda Motor Co., Ltd. announced the new Odyssey for the Japanese market, offering outstanding new value in minivan. (Ref. #A03-055)
On October 24, 2003, Honda Motor Co., Ltd. announced that overseas automobile production increased 19.7% in September over the corresponding month in 2002, the 33rd consecutive month of growth in that category. (Ref. #C03-078)
On October 28, 2003, Honda Motor Co., Ltd. announced its consolidated financial results for the fiscal second quarter and the first half ended September 30th 2003.
English translation of Notice of Resolution by the Board of Directors concerning Payment of Interim Dividend for the 80th fiscal period.
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
HONDA GIKEN KOGYO KABUSHIKI KAISHA ( HONDA MOTOR CO., LTD ) |
/s/ Satoshi Aoki |
Satoshi Aoki Senior Managing and Representative Director |
Date: November 14, 2003
ref. #M03-37
Honda Develops Worlds First Electronically Controlled Fuel
Injection System for a 4-Stroke 50cc Scooter
October 3, 2003Honda Motor Co., Ltd. announced today that it has developed the worlds first electronically controlled fuel injection system (Honda Programmed Fuel Injection, or PGM-FI) for use in 4-stroke, 50cc engines. The PGM-FI system, which offers superb starting along with improved fuel economy and cleaner emissions, will be available on a new-model scooter in Japan next spring.
All Honda scooters for sale in Japan are scheduled for conversion to PGM-FI by 2007, and the majority of models for sale worldwide will be equipped with PGM-FI by 2010.
Use of PGM-FI in any motorcycle requires precise control technology, but in smaller models with a displacement as low as 50cc, the further needs for compact design and low cost present a considerable technical challenge.
Main achievements in developing PGM-FI for use in a 4-stroke, 50cc scooter:
| A major reduction in the number of structural components achieved through functional integration and unified design, resulting in both size and cost savings. |
| Approximately 7%* better fuel economy in 30km/h steady speed test mode, and approximately 10%* better fuel economy in a test mode designed to simulate actual city driving conditions. |
| Reduction of emissions to just half the CO (carbon monoxide) and HC (hydrocarbon) levels stipulated by Japanese government regulations. |
| Compared to a conventional, carburetor-equipped 50cc engine, significantly better starting when cold or after long periods of disuse. |
| Although the system requires an electrical supply, the scooter can be started using the kick-starter even when the battery is completely dead. |
*Calculations based on Honda in-house testing | ||||
PGM-FI-equipped 4-stroke, 50cc engine | PGM-FI-equipped 4-stroke, 50cc prototype scooter |
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As part of its ongoing effort to help preserve the global environment, Honda completed the conversion to 4-stroke engines of all its motorcycles offered for sale worldwide (excluding some specialized models) at the end of 2002. The CX500 Turbo (a 500cc export model) was the first Honda motorcycle to be sold with fuel injection, in 1982. Since then, fuel injection has been available on a wide range of motorcycles, from large-displacement 1800cc bikes down to small-displacement 125cc models. Now, Hondas latest technological advances have further broadened this range to include these new 4-stroke, 50cc enginesa worlds first.
This new technology will promote greater fuel economy and cleaner emissions in 50cc-class scooters, the largest sales category in Japan.
l Main Features of the PGM-FI System for Use in a 4-stroke, 50cc Scooter
m | Low cost and functional integration |
Functional components are combined and sensing functions integrated, and the fuel pump and other major components redesigned to reduce the number of parts required to just 8, compared to the 15 used in a conventional PGM-FI unit for larger models. On top of this, a 32-bit CPU was used to integrate the ACG*1 starter control ECU*2 with the PGM-FI control ECU, resulting in greater functional integration for further cost savings.
*1 ACG: Alternating-Current Generator | ||
*2 ECU: Engine Control Unit |
m | Smaller, more lightweight components |
In order to maintain the 50cc scooters flat-floor design, an ultra-compact fuel pump module was newly designed to fit inside the flat fuel tank located underneath the floor. The unit is just 64% of the volume and 32% the weight of the one used in the 125cc Pantheon scooter released in Europe in February 2003. The throttle body and ECU have also been made lighter and smaller, with volumes of just 38% and 21% respectively, of those used in the carburetor-equipped conventional 50cc scooter.
m | Precise fuel-flow volume control |
An injector for use in a small-displacement engine must provide both minute injection volumes and fine atomization of the injected fuel. The new injector for use in 50cc engines uses a two-hole injection nozzle to attain just one-third the injection volume compared to a 125cc scooter (the Pantheon). And, whereas conventional injectors generally employ multi-holed injection nozzles to obtain fine atomization, the new injector uses an optimized internal flow-path shape to achieve the worlds highest level of atomization.
m | Precise airflow control during idling |
Airflow volume also needed to be reduced to one-third that of a 125cc scooter (the Pantheon). The newly developed air valve for use in 50cc engines employs an ultra-miniature step motor to precisely move a high-precision valve in increments of 30ìm, ensuring optimum air volume control during startup, warm up, idling, and other engine operating conditions. This results in significant improvements in startup and idling performance, and reduces the need for periodic maintenance.
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m | Kick-starting when the battery is completely dead |
Users of small scooters want to start them using the kick-starter even when the battery is completely dead due to long periods of disuse. With previous fuel injection systems, it was difficult to start the engine with the current produced by the kick-starter alone. With the new system, however, small amounts of current produced by the kick-starter are directed over a 0.2 second period only to the circuits required for startup. Thanks to this and to a newly developed energy-saving fuel pump, the engine can start up smoothly even when the battery is dead.
Related publicity information and photographs are available from October 3, 2003 at the following URL:
http://www.honda.co.jp/PR/
Please enter this URL directly into an internet browser (Internet Explorer, etc.)
(This site is intended solely for the use of journalists.)
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ref. #A03-053
New Honda Fuel Cell Stack Operates at Low Temperatures;
Breakthrough Technology to be Tested in FCX on Public Roads
October 10, 2003Honda Motor Co., Ltd. today announced the development of the Honda FC Stack, a remarkably compact, next-generation fuel cell stack that delivers high performance, yet operates at temperatures as low as -20ºC (-4ºF). It is the worlds first fuel stack to feature a metal press separator structure and newly developed electrolyte membranes. The FCX equipped with the Honda FC Stack was certified September 24, by the Minister of Land, Infrastructure and Transport.
Honda will begin public testing of the vehicles cold start and driving performance capabilities to advance more widespread use of fuel cell vehicles. Honda FC Stack-equipped FCX will take the role of a lead car in the 80th Tokyo-Hakone Ekiden relay race in January 2004.
Conventional fuel cell stacks have a complex structure in which carbon separators are fastened together with bolts. The Honda FC Stack, however, has a simplified structure composed of metal press separators, with rubber seals that are attached in a unique molding process and enclosed by panels. This reduces the number of components by almost 50% (compared to a conventional unit*1) and more than doubles the output density*2, resulting in world-leading high performance. Further, use of newly developed aromatic electrolyte membranes greatly improves durability and allows for power generation at temperatures ranging from -20ºC(-4ºF) to +95ºC(+203 ºF)a difficult achievement for stacks that employ conventional fluorine electrolyte membranes. The driving range of the FCX with a Honda FC Stack also has increased by 40 km*3, from 355 km to 395 km, while fuel economy has improved by over 10%*4.
Honda began fuel cell technology research in the 1980s. Tests of Honda fuel cell stacks were conducted under a range of driving conditions using the 1999 FCX-V2 and the 2001 FCX-V3. Developed with a view to volume production and the ultimate need to recycle fuel cell vehicles, this next generation Honda FC Stack significantly reduces the use of special materials and offers excellent driving performance and low-temperature starts.
| ||
Honda FC Stack |
FCX equipped with the Honda FC Stack |
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Key Features of the Honda FC Stack
1. | Compact, high output |
| The number of components is reduced by almost 50% through use of the worlds first metal press separators and a panel-type structure, while the output density is almost double that of a conventional fuel cell stack. |
2. | Low-temperature starts |
| Ion conductivity at low temperatures is double that of a conventional stack thanks to use of aromatic electrolyte membranes. |
| Use of metal press separators improves conductivity. |
| Thermal capacity is reduced because the unit is more compact. Warm-up time is 20% that of a conventional stack. |
3. | Durable even at high temperatures |
| Power can be generated at up to +95ºC(203ºF). |
4. | Next-generation fuel cell stack developed in consideration of mass production and recycling. |
| Some special materials have been replaced b more readily-available materials. |
*1 | Honda fuel cell stack on the FCX-V3 |
*2 | output/volume, output/weight |
*3 | LA4 mode Honda in-house calculations |
*4 | Compared with an FCX equipped with a Ballard fuel cell stack |
Specifications of the Honda FC Stack-equipped FCX
Name |
FCX | |||
Number of occupants |
4 | |||
Max. speed |
150 km/h | |||
Max. output |
80kW (109PS) | |||
Max. drive torque |
272N·m (27.5 kg·m) | |||
Motor |
Type |
AC synchronous electric motor (manufactured by Honda) | ||
Fuel cell stack (2 units) |
Type |
PEMFC (proton exchange membrane fuel cell, manufactured by Honda) | ||
Output |
86kW | |||
Fuel |
Type |
Compressed hydrogen | ||
Storage |
High-pressure hydrogen tank (350 atmospheres) | |||
Capacity |
156.6 liters | |||
Dimensions (L x W x H, mm) |
4165 x 1760 x 1645 | |||
Energy storage |
Ultra Capacitor (manufactured by Honda) | |||
Vehicle range (LA4 mode) |
395 km |
Publicity information relating to the next generation Honda FC Stack is available from the following URL:
http://www.honda.co.jp/PR/
(This site is intended exclusively for the use of journalists.)
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ref. #C03-076
Honda Announces Automobiles and Motorcycles to be
Displayed at the 37th Tokyo Motor Show
October 14, 2003Honda Motor Co., Ltd. today announced the lineup of vehicles to be displayed at the Japan Automobile Manufacturers Association, Inc.-sponsored 37th Tokyo Motor Show which runs from Saturday October 25th to Wednesday, November 5, 2003 at Makuhari Messe in Chiba, Japan.
The essence of Hondas global brand and the spirit of challenge it is founded upon is expressed in the slogan The Power of Dreams. The theme chosen for the passenger car display at this Tokyo Motor Show, Free Thinking; Liberating Technology, introduces the bright and exciting world of people and cars that Honda aims to create. The theme of the motorcycle display, Dream Wings expresses Hondas desire to take the relationship between people and motorcycles to another level. In this corner some ideas, which were born of this continuous challenge, are on display. In addition to production concept vehicles, the Honda display will showcase the companys environmental and safety technologies.
GRIFFON | HSC | |||
KIWAMI | PS250 |
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Passenger Car Display: 19 Vehicles, 16 Models
At the passenger car display, Honda will present some of the latest results of the companys free and innovative thinking and its determination to empower the individual. An all-new Odyssey will be introduced, as well as a broad range of imaginative concept vehicles. In addition, a variety of innovative powerplants that combine superior driving pleasure with advanced environmental technology, and a selection of new Honda safety technologies will be presented.
New Odyssey/ASM Stage
The spacious and comfortable new Odyssey redefines the minivan. An innovative low-floor platform provides a low center of gravity for improved handling and a low roofline. Sharing the stage with the new Odyssey will be the concept vehicle ASM, an 8-seat minivan offering both advanced technology and luxury.
Concept Vehicle Stage
Honda will present its ideas for the future in a lineup of intriguing concept vehicles: the HSC which offers the driving pleasure of a sports car in a package that anyone can handle; the IMAS, a lightweight aerodynamic hybrid sports car; and KIWAMI, which matches Hondas clean-running fuel cell technology with the Japanese aesthetic of beauty in a premium next-generation sedan.
Advanced Technology Stage
The display will feature the FCX, the worlds first fuel cell vehicle to be brought to market, along with a wide range of cutaway models of engines that combine driving performance and advanced environmental technology. In addition, some of the latest developments in Hondas pre-crash safety and other safety technologies will be featured.
Motor Sports Stage
Hondas Formula One and IndyCar racers will be displayed, along with a racing version of the Fit (a concept vehicle).
Further, Hondas ongoing work in the area of Welfare Vehicles will be represented by displays of the passenger lift seat-equipped Odyssey Almas and Life Almas as well as the Monpal 4-wheel electric wheelchair, which can be driven with an easy-to-operate lever.
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Motorcycle Display: 51 Vehicles, 40 Models
At the motorcycle display, Honda will present on four stages the idea of Dream Wings, Hondas desire to share the pleasure of motorcycle riding with more and more individuals. Honda is pursuing dreams and overcoming challenges to provide advanced technology for all.
Main Stage
Conveying a strong and compelling presence on the main stage will be the concept model Griffon, which combines the sportiness of a motorcycle with the convenience of a scooter; the soon-to-be-released CBR1000RR and CB750; and the overseas exhibition model Valkyrie Rune.
The Center Stage will feature the PS250, a concept model which represents the 5th model to be developed by the N Project and its team of young engineers at the Asaka R&D Center.
The Honda Racing Stage will feature the MotoGP championship machine RC211V, Hondas new downhill racing RN01 mountain bike, and a range of other vehicles representative of Hondas spirit of challenge and advanced technology.
The Ecology/Safety/Security Stage will focus on Hondas safety, environmental and security technologies. Hondas participation in the Ministry of Land, Infrastructure and Transport-led Advanced Safety Vehicle (ASV) program will be presented, including the Honda Riding Simulator, developed on the basis of the ASV, which enables one to experience motorcycle riding in a variety of simulated conditions.
As an example of Hondas environmental technology, the Dio Z4 FI, which is to be released in the near future, highlights Hondas newly developed PGM-FI (programmed fuel injection) system for 4-stroke 50cc engines.
The security display will feature Hondas Smart Key and other systems, which combine convenience with advanced anti-theft protection.
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¨ Displayed Vehicles (l Exhibition Model m Production Model)
[Passenger Car Display Corner]
World Premiere (4 Models) (§) | ||||
New Odyssey/ASM Stage |
m | New Odyssey | ||
l | ASM («) | |||
Concept Vehicle Stage |
l | HSC («) | ||
l | IMAS («) | |||
l | KIWAMI («) | |||
Advanced Technology Stage |
m | Inspire | ||
m | Life | |||
Motor Sports Stage |
l | F1 | ||
l | IndyCar | |||
l | Fit Racing Model | |||
m | S2000 | |||
Welfare Vehicles |
m | Odyssey Almas | ||
m | Life Almas | |||
Production Models |
m | Step WGN | ||
m | Stream | |||
m | Accord Wagon | |||
[Motorcycle Display Corner] | ||||
World Premiere (6 models)(«) Japan Premiere (4 models) (¶) | ||||
Main Stage |
l | GRIFFON(«) l CBR1000RR (¶) | ||
l | SHADOW750 (¶) l CB750 | |||
l | VTX1800S (¶) | |||
l | VALKYRIE RUNE (¶) | |||
l | GL1800 Gold Wing | |||
l | CB400 Super Four HYPER VTEC SPECIII («) | |||
l | CB1300 Super Four Type-R l CB400SS and others | |||
Center Stage |
l | PS250 («) and others | ||
Honda Racing Stage |
l | RC211V l VTR1000SPW l RN01 and others | ||
Ecology/Safety/Security |
l | Dio Z4 FI («) l Riding Trainer («) | ||
l | WAVE 125 FI l ASV Riding Simulator and others | |||
Production Models |
m | VTX m SILVER WING (600) ABS-equipped vehicle | ||
m | XR250 m XR250 Motard m VTR | |||
m | Spacy100 m SOLO m TODAY | |||
m | FUSION Type X equipped with audio system («) and others |
Publicity materials relating to Hondas displays at the 37th Tokyo Motor Show will be available as of October 15, 2003 at the following URL:
http:// www.honda.co.jp/PR/
(This site is intended exclusively for the use of journalists.)
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The following announcement was released by Honda R&D Co., Ltd., Hondas research and development subsidiary, at 1:00 p.m. on October 15, 2003 Thailand time (3:00 p.m., October 15, 2003 Japan time).
<For reference>
ref.#C03-077
Honda Expands Motorcycle R&D Operation in Thailand to Enhance Research and
Development of Motorcycles for the ASEAN Region
Bangkok, Thailand, October 15, 2003Honda R&D Co., Ltd., Hondas research and development subsidiary, has announced that it will expand Honda R&D Southeast Asia Co., Ltd. (hereinafter referred to as HRS-T), its motorcycle research center in Thailand, in order to enhance research and development of motorcycles for the ASEAN region.
An additional investment of 800 million baths will be made to cover the cost of a 8,350m2 plot of land which has been purchased as well as for a new facility and adjoining test course will be constructed there. Currently, HRS-T conducts market research, styling design and mock-up model production. In the future, additional functions including engineering design and development as well as the testing of prototype motorcycles will be undertaken.
In 1988, a representative office was established in Thailand for the purpose of carrying out research and development of motorcycles and in 1997, this office was incorporated as HRS-T. In consideration of the expansion of the ASEAN motorcycle market in countries such as Indonesia, Vietnam and Thailand, which follow China and India as the largest markets, strengthening of the development function will be accelerated.
Outline of R&D Southeast Asia Co., Ltd.
Location: | Bangkok, Thailand | |
Capital: | 18.30 million bahts | |
President: | Hirofumi Kambe | |
Equity ratio: | Honda R&D Co., Ltd. 100% | |
Business: | Research and development of motorcycles | |
Established: | November 1997 |
Related PR material can be downloaded from the following URL from October 15, 2003. To download, please use browser software such as Internet Explorer and directly type http://www.honda.co.jp/PR/ into the address bar.
(The above site is for the exclusive use of members of the press.)
ref. #M03-040
Honda Introduces the New Dio Scooter
October 16, 2003Honda Motor Co., Ltd. today announced the upcoming release in Japan of the new Dio scooter, featuring an air-cooled, 4-stroke 50cc engine and striking new design. The new Dio is the third model manufactured in China to be introduced here and goes on sale Thursday, November 20, 2003.
The Dio features a bold new sporty wedge-shape body and environmental performance built into every detail. The high-quality styling is accented by six different color variations of lustrous pearl-white and metallic paints certain to please a broad range of customers.
Production of the new Dio takes full advantage of Hondas global network with research and development conducted in Japan, optimal procurement of parts from various countries in Asia, and the manufacturing handled under the most stringent quality control standards at Sundiro Honda Motorcycle Co., Ltd. in China.
The new Dio is the fourth in the Dio series to be sold in Japan, joining the water-cooled 4-stroke 50cc Smart Dio, the Smart Dio Deluxe, which features an advanced Idle Stop System and front disc brakes, and the Smart Dio Z4all manufactured at Hondas Kumamoto Factory.
Optimally leveraging worldwide operating resources and achieving a mutually complementary supply of products within regions, Honda is moving forward with its Made by Global Honda policy, responding to diversifying customer demand by manufacturing in the appropriate location for supply to each market.
Dio | ||||
l Annual domestic sales target |
60,000 units | |||
l Manufacturers suggested retail price (consumption tax not included) |
119,000 yen |
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= Key Features =
l Highly reliable air-cooled 4-stroke engine
The new Dio is equipped with a highly reliable, forced-air-cooled engine. An air injection (secondary air supply) system has been combined with a compact combustion chamber to reduce harmful pollutants in the exhaust gas. The engine has also been tuned to provide ample power in the low-to-mid engine speed rangesjust right for the frequent starts and acceleration of city driving. Fuel consumption is an impressive 65km/liter*1.
*1 In low-altitude driving at 30km/hour
l Striking new styling and ample equipment
The Dios striking new styling starts with the upturned tail, which accents the wedge-like body shape. Contoured surfaces, metal accents and multi-reflector headlights provide added visual appeal. A needle-indicator-equipped fuel gauge offers superior visibility, and other ergonomic features include a push-canceling turn indicator and inner storage pockets at knee level. The 22-liter*2 under-seat storage compartment accommodates a standard full-face helmet.
*2 Honda in-house measurement.
l Comprehensive anti-theft system and safety equipment
The anti-theft system utilizes a key cylinder that features centralized control of the main switch, seat opener and handle lock. The key cylinder is also equipped with a shutter-like protective cover. A U-lock holder on the rear carrier enables a U-lock to be fitted. Extra security is achieved through pre-wiring for an optional alarm kit or immobilizer alarm. Safety equipment includes a combined brake system that distributes an appropriate balance of front and rear wheel braking force when only the left (rear wheel) brake lever is used. This enables effective stopping while maintaining vehicle stability.
l Distinctive color variations
Six attractive color choices are designed to meet a wide range of customer needs, with a focus on metallic and pearl colorings for a high-quality look.
Two-tone3 colors: (x Matte Access Grey Metallic), Sigma Silver Metallic, Sirius Blue Metallic, Orion Yellow
Solid colors3 colors: Pearl Cancer White, Pearl Procyon Black, Candy Lucid Red
n Manufacturer: Sundiro Honda Motorcycle Co., Ltd.
Established: | September, 2001 | |
Head office location: |
Tianjin City, China | |
Capital: |
US$ 99.56 million | |
Capital contribution: |
Honda Motor Co., Ltd. 50%, Hainan Sundiro Holding Co., Ltd. 47.33%, Tianjin Motors Group Inc. 2.67% | |
Principal activities: |
Production and sale of motorcycles | |
Number of employees: |
6,700 (as of May, 2003) | |
Production capacity: |
Finished vehicles=1.4 million units/year (engines=1.2 million units) |
Publicity materials relating to the new Dio will be available at the following URL :http://www.honda.co.jp/PR as of October 16, 2003.
(This site is intended exclusively for the use of journalists.)
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Key Specifications
Model Name |
Dio | |||||
Model Type |
Honda·BA-AF62 | |||||
L × W × H |
(m) | 1.720×0.630×1.020 | ||||
Wheelbase |
(m) | 1.180 | ||||
Ground Clearance |
(m) | 0.110 | ||||
Seat Height |
(m) | 0.695 | ||||
Vehicle Weight |
(kg) | 77 | ||||
Dry Weight |
(kg) | 73 | ||||
Number of Riders |
1 | |||||
Turning Radius |
(m) | 1.8 | ||||
Engine Type |
AF61E (air-cooled 4-stroke OHC single-cylinder) | |||||
Displacement |
(cm3) | 49 | ||||
Bore x stroke |
(mm) | 37.8×44.0 | ||||
Compression Ratio |
10.1 | |||||
Maximum Power |
(kW[PS]/rpm) | 3.0[4.1]/8,000 | ||||
Maximum Torque |
(Nm[kg-m]/rpm) | 3.7[0.38]/6,500 | ||||
Fuel Consumption |
(km/l) | 65.0 (30km/h low-altitude driving) | ||||
Carburetor Type |
VK0DB | |||||
Starter |
Self-starting (also kick-start) | |||||
Ignition |
CDI battery ignition | |||||
Lubrication |
Combination pressure/splash | |||||
Fuel Tank Capacity |
(l) | 5.0 | ||||
Clutch |
Dry, multi-plate shoe | |||||
Gearbox |
Constant mesh (V-matic) | |||||
Gear ratio |
1 gear | 2.850~0.860 | ||||
Reduction Ratio |
Primary | 3.600 | ||||
Secondary |
3.769 | |||||
Caster Angle (degrees)/Trail (mm) |
26°30' /71 | |||||
Tire Size |
Front | 80/100-10 46J | ||||
Rear |
80/100-10 46J | |||||
Braking System |
Front | Mechanical leading/trailing | ||||
Rear |
Mechanical leading/trailing | |||||
Suspension |
Front | Telescopic | ||||
Rear |
Unit-swing type | |||||
Frame |
Underbone |
ref. #A03-056
Honda Introduces Worlds First Congestion Prediction Function
for its InterNavi Premium Club Car Navigation Service
October 17, 2003Honda Motor Co., Ltd. today announced the addition of the worlds first Congestion Prediction function to the companys exclusive InterNavi Premium Club service. This new function allows users to foresee changes in traffic patterns and apply this information in route planning. Creating a two-way information exchange network using the voice-operated Honda Navigation System and portable telephones, The InterNavi Premium Club services have received acclaim for making available to drivers a range of information only an automaker can provide. The Congestion Prediction function is now available on the new Odyssey with plans to expand availability to other models in the future.
Available to Honda owners who purchased the recently announced Honda HDD Navigation System as part of the InterNavi Premium Club service, the Congestion Prediction function precisely predicts changes in traffic patterns to indicate the least congested route to the destination based on real-time VICS*1 data and past VICS data archived at the InterNavi Information Center. Receiving this precise information at departure, drivers also can more accurately predict the length of time required to reach their destination.
Since its inception in October 2002, the InterNavi Premium Club has been well received for leveraging advanced technology and information infrastructure to provide value-added information to its members, and now has over 25,000 members*2. In conjunction with the recently announced Premium Members VICS and Parking Selection functions, this new Congestion Prediction function represents an attractive enhancement to the service.
*1 VICS is a registered trademark of the Vehicle Information and Communication System Center.
*2 As of October 2003
Details of the new service can be viewed at the InterNavi Technology part of the InterNavi Premium Club website, at the following URL:http://premium-club.jp/
Publicity materials relating to the Congestion Prediction function are available at the following URL: http://www.honda.co.jp/PR
(This site is intended exclusively for the use of journalists.)
ref. #A03-055
Honda Announces a Full Model Change for the Odyssey
October 17, 2003Honda Motor Co., Ltd. has announced the new Odyssey for the Japanese market, offering outstanding new value in a minivan. A 2.4-liter DOHC i-VTEC engine and newly developed CVT + 7-speed mode*1 transmission provide superior driving performance, while the new low-floor platform ensures a roofline of just 1,550mm, low enough to fit into standard multi-level parking facilities. The intelligently designed, spacious interior comfortably accommodates seven people in three rows of seats. The new Odyssey goes on sale October 24th at Honda automobile dealers throughout Japan.
This third-generation Odyssey is a new benchmark in minivan innovation with its fusion of speed (lower center of gravity for improved ride and handling), elegance (elegant form thanks to its low overall height), and roominess (more headroom than the previous model thanks to the low-floor platform).
The top-of-the-line Odyssey Absolute represents a new level of elegant design and dynamic performance. Its 2.4-liter DOHC i-VTEC engine boasts a maximum output of 147kW (200PS) and is matched with a 5-speed automatic transmission, DBW (Drive By Wire), and a specially tuned suspension and braking system. There is ample torque at all rpm ranges, and performance is powerful and sporty. The innovative, stylish exterior features custom aerodynamics and a low-slung profile, while the interior is finished in elegant black.
Odyssey L Type (FF) |
Odyssey Absolute (FF, optional equipment) |
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Styling: |
A low, wide stance for a contemporary, intelligent appearance. |
Packaging: |
The low-floor platform ensures a low roofline for access to standard multi-level parking facilities and a spacious interior that comfortably seats seven people in three rows. |
Driving performance: |
The 2.4-liter DOHC i-VTEC engine delivers ample torque and outstanding environmental performance, and is offered with either a newly developed CVT + 7-speed mode transmission or a 5-speed automatic transmission, depending on model type. |
Advanced functions: |
The new Odyssey is equipped with IHCC (Intelligent Highway Cruise Control)*2 vehicle speed and inter-vehicle distance control system to reduce burden on the driver during highway driving. It also features the voice-operated Honda HDD Navigation System + Progressive Commander*3, with rear camera, for significant improvements in functionality and operability. |
Safety performance: |
The new Odyssey is equipped with CMS (Collision Mitigation Brake System), and E-pretensioners (driver and front passenger seatbelts*4). In addition, the Odysseys new crash-compatibility body combines increased self-protection with reduced aggressivity toward other vehicles. |
Environmental performance: |
All types have been certified by the Japanese Ministry of Land, Infrastructure and Transport as either Ultra Low Emissions Vehicles*5 or Excellent Low Emissions Vehicles*6 and have met emissions regulations for 2005, with some types already achieving a 75% reduction*7 with respect those levels. All types comply with 2010 government regulations for fuel economy. |
*1 | Available on S, M, and L type FF vehicles |
*2,4 | Factory option on the Absolute |
*3 | Factory option on the M, L and Absolute |
*5,7 | S, M, L types |
*6 | Absolute |
lMonthly domestic sales target: | 5,000 units |
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lManufacturers suggested retail price (consumption tax not included; units: ¥1,000)
Type |
Engine |
Max. Output |
Drive Wheels |
Transmission |
Price | |||||
S |
2.4L DOHC i-VTEC |
118kW (160PS) |
FF | CVT + 7-speed mode |
2,200 | |||||
4WD |
5AT+S-matic |
2,420 | ||||||||
M |
FF |
CVT + 7-speed mode |
2,300 | |||||||
4WD |
5AT+S-matic |
2,520 | ||||||||
L |
FF |
CVT + 7-speed mode |
2,750 | |||||||
4WD |
5AT+S-matic |
2,970 | ||||||||
Absolute |
147kW (200PS) |
FF |
5AT+S-matic |
2,600 | ||||||
140kW (190PS) |
4WD | 5AT+S-matic | 2,820 |
Indicates models shown in photos |
m | Body colors |
Premium White Pearl*; Satin Silver Metallic; Nighthawk Black Pearl; Grayish Mauve Metallic (custom color for M, L types); Indigo Blue Pearl (M, L); Desert Mist Metallic (M, L); Meteor Silver Metallic (M, L); Royal Ruby Red Pearl (M, L); Black Amethyst Pearl (custom color for Absolute); Milano Red (Absolute)
* | Premium White Pearl: +¥30,000 |
m | Factory options |
Side curtain airbag system (covers 1st~3rd-row seats): |
+¥110,000 | |
(1st-row seat i-Side airbag system (equipped with passenger positioning detection system for front passenger seat) set option. Available on S, M, and Absolute. Standard equipment on L Type) |
||
IHCC + multi-information display + CMS (Collision Mitigation Brake System) + E-pretensioners: |
+¥250,000 | |
(Available on Absolute) |
||
AFS (Adaptive Front-lighting System, with auto-leveling function): |
+¥50,000 | |
(Available on M, L, Absolute) |
||
Voice-operated Honda HDD navigation system with rear camera + Progressive Commander (with 8-inch wide display and Inter Navi Premium Club. Available on M, L, Absolute) |
||
M Type: +¥345,000 | ||
L Type: +¥300,000 | ||
Absolute: +¥340,000 | ||
Rear entertainment system (9-inch wide display, 2 sets of wireless headphones): |
+¥220,000 | |
(Available on M, L, Absolute) |
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CD player with AM/FM tuner (Available on M, Absolute. Standard equipment on L Type) |
||
M Type: +¥45,000 Absolute: +¥40,000 | ||
Acureef premium sound system (in-dash 6-CD changer with AM/FM tuner + 7 speakers) (Available on L, Absolute) |
||
L Type: +¥100,000 Absolute: +¥140,000 | ||
Power tailgate (with anti-pinch mechanism and remote opening/closing): (Available on M, L types) |
+¥80,000 | |
Front power glass sun roof: (Available on M, L, Absolute) |
+¥80,000 | |
Power utility package (Honda Smart Card key system, AC 100V outlet, driver-side 8-way power seat (sliding, reclining, height front and rear)): |
+¥130,000 | |
(Available on M Type, Absolute. Standard equipment on L Type) |
||
Comfort package (triple-zone control, fully automatic air conditioner; auto light control; electrically heated front window): |
+¥70,000 | |
(Available on M, Absolute. Standard equipment on L Type) |
||
Genuine leather seats |
+¥210,000 | |
(with heater-equipped front driver and passenger seats and drivers side seat-back pocket): (Available on L Type, Absolute) |
||
Power under-floor storage for 3rd-row seats: |
+¥50,000 | |
(Available on M, Absolute. Standard equipment on L Type) |
||
Recaros bucket seats (driver/front passenger): |
+¥130,000 | |
(Available on Absolute) |
||
Audio-less option available: |
- ¥40,000 | |
(Available on L Type) |
* | Factory options and/or package options sets are subject to availability. Certain package combinations may also be unavailable. |
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¨Key Features
<Packaging and utility>
| The new Odysseys new low-floor design results in a roofline 80mm lower*1 than the previous model, allowing access to standard multi-level parking facilities. It also offers 5mm more headroom than the previous model for far greater roominess than the vehicles external appearance would suggest. |
| Under-floor storage for the 3rd-row seats and a variety of seating arrangements secure a voluminous luggage space of up to 1,052 liters*2. A handy 100V AC outlet*3 is also provided. |
| The 2nd-row seats are equipped with a double folding mechanism that allows them to be stored flat. |
| The 3rd-row seats feature a power under-floor storage mechanism*4, allowing them to be easily stowed away at the press of a switch. |
| The power tailgate*5 can be opened and closed using the keyless entry remote control, a switch on the dashboard, or the switch on the inside of the tailgate (closing only). |
*1 | Compared to previous FF model |
*2 | According to Honda measurements using VDA formula |
*3 | Available only on vehicles equipped with power utility package |
*4 | Standard equipment on L Type, factory option on M Type and Absolute |
*5 | Factory option on M and L types |
<Design>
lExterior design
| Designed around the motif of a black panther, with its low-profile form speeding swiftly and smartly over a grassy plain, the Odyssey presents fresh new styling and a distinctive presence. |
| Centered on a floating grill, the slim-profile headlights and front bumper are integrated and positioned low. The front fenders are flared wide to emphasize the feeling of breadth and strength. |
| The side view features an elegant, unified silhouette that connects smoothly from the low, short front nose to the roof end. |
| The rear view design is dynamic and has a solid feel. |
lInterior design
| The high-quality interior combines a functional, fashionable cockpit with an elegant, relaxing passenger space. Controls are concentrated in the center panel, with the dashboard spreading out to either side and blending with the doors for a unified look all the way to the rear. |
| Blue LED lights* illuminate the foot areas of the 1st- and 2nd-row seats and the cup holders for the 3rd-row seats when the small lamps are turned on. |
| The shift lever is positioned as close as possible to the steering wheel. This significantly reduces the distance the drivers hand must travel to operate it, resulting in more ergonomic shifting. The advanced design features a gun-grip shift knob and a ball-shaped metallic slider. |
* | Standard equipment on the L type |
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<Driving performance>
lEngine
| The DOHC i-VTEC engine combines Hondas VTEC (Variable Valve Timing and Lift Electronic Control) with VTC (Variable Valve Timing Control), which optimizes intake valve timing in response to engine load. Two engines are available depending on the model type, both of which achieve a combination of high torque, high fuel economy, and low emissions. |
2.4-liter DOHC i-VTEC engine: 118kW (160ps) / 218Nm (22.2kg-m)*1
2.4-liter DOHC i-VTEC engine: 147kW (200ps) / 232Nm (23.7kg-m)*2
| All types achieve high levels of environmental performance, and are certified by the Japanese Ministry of Land, Infrastructure and Transport as either Ultra Low Emissions Vehicles or Excellent Low Emissions Vehicles. |
*1 | Net values (S, M, L types) |
*2 | Net values (FF Absolute) |
lTransmission
| Newly developed CVT (Continuously Variable Transmission) + 7-speed mode transmission*1 |
The torque converters powerful off-the-line performance and the smooth acceleration unique to the CVT combine to deliver robust responsiveness at all speeds. Transmission lockup at nearly all speeds except startup contributes to higher fuel economy. In the D position, driving conditions are determined according to gas pedal and brake operation, vehicle speed, and other parameters, and the appropriate gear ratio is selected. During cornering, the vehicles lateral G-force is calculated to determine whether it is being driven in a sport way, and cornering G-shift control maintains engine revs at a higher level when the driver eases off on the gas pedal. Also available is the Econ mode feature, which saves fuel by reducing engine rpms at idle.
| 5-speed automatic transmission + S-Matic*2 |
Delivers powerful acceleration and linear shift response, while contributing to improved fuel economy. The expanded range of lockup during deceleration also helps save fuel.
*1 | Available on FF S, M, and L types |
*2 | Available on 4WD S, M, and L types, and the Absolute |
lNewly developed real-time 4WD
| The newly developed real-time 4WD combines a dual-pump-system clutch mechanism with a one-way cam unit and pilot clutch. This transmits drive force without any feeling of time lag and enhances stability during startup and cornering on snow-covered roads and other slippery surfaces. |
<Chassis>
| In the front, a double-wishbone suspension ensures straight-line stability and outstanding ride comfort. |
| In the rear, the compact design of the rear reactive-link double-wishbone suspension contributes to the Odysseys low-floor, flat form. |
| In addition to enhancing bending and twisting rigidity, extensive efforts were made to improve dynamic rigidity, for improved handling responsiveness and a more comfortable ride. High-tensile steel is also used in all major body frame components, for a 16kg weight saving compared to use of conventional materials. |
| A more compact powertrain and VGR (Variable-steering Gear Ratio) give the new Odyssey a minimum turning radius of just 5.4mtop in its class*. |
* | Over-2000cc minivan class |
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<Safety performance>
| AFS (Adaptive Front Lighting System)*1 works in coordination with steering wheel angle to change the direction of the headlight unit and illuminate the vehicles path when negotiating curves or turning. |
| Four-wheel VSA (ABS + TCS + side-slip control)*2 combines with DBW (Drive By Wire) *3 for engine torque control to ensure precise control over vehicle stability. |
| Brake assist is standard on all types, with the Absolute featuring an electronic brake assist system. A learning function automatically adjusts the assist operation point to conform to the drivers braking habits. |
| CMS (Collision Mitigation Brake System)*4 uses millimeter-wave radar to gauge distance to the vehicle ahead, providing the driver with audio and tactile warning of a possible collision, while also applying light braking pressure. If the system determines that a collision is imminent, it applies strong braking pressure to enhance the effect of the drivers own braking, thus mitigating damage in the event of a collision. |
| E-pretensioners (driver and front passenger seat)*5 work in concert with CMS, pulling lightly on the seatbelt if there is a danger of a collision and more forcefully if it is determined that a collision is imminent, for increased restraining effect. |
| Hondas original G-CON (G-force Control) technology is incorporated to create a body with a crash safety design that is among the best in the world. It can withstand a 55km/h full-frontal collision, a 64km/h front offset collision, a 55km/h side collision, and a 50km/h rear collision. Furthermore, in addition to a high level of self-protection, the vehicles crash compatibility body reduces aggressivity toward other vehicles. |
| Equipped with a side curtain airbag system*6 for the 1st~3rd row seats that helps reduce head injuries in the event of a side collision. |
| Front-row seats are fitted with 3-point, load limiter-equipped, pretensioner ELR seatbelts. The drivers side belt is equipped with a lap pretensioner on the outer end of the lap belt, in addition to the shoulder belt pretensioner, for improved occupant retention in both the pelvic and thoracic regions. |
*1 | Factory option on the M, L, and Absolute types |
*2, 3 | Standard equipment on the Absolute |
*4 | Available as a set with E-pretensioners and IHCC as a factory option on the Absolute |
*5 | Available as a set with CMS (Collision Mitigation Brake System) and IHCC as a factory option on the Absolute |
*6 | Standard equipment on the L Type. Available in a set as a factory option on the S, M, and Absolute types |
<Environmental Performance>
| Use of a rear-port exhaust system, high-density catalytic converter, and other innovations result in Japanese Ministry of Land, Infrastructure and Transport certification as an Ultra Low Emissions Vehicle for the S, M, and L types, and as an Excellent Low Emissions Vehicle for the Absolute. All types clear emissions regulations for 2005, with the S, M, and L types achieving a 75% reduction with respect to those levels. |
| Compliance with 2010 government regulations for fuel economy for all types has been achieved through weight reduction and aerodynamic improvements. The S, M, and L types are all eligible for tax incentives under the Japanese governments Green Tax program. |
| Honda has worked to eliminate PVC (polyvinyl chloride) from interior and exterior plastic components wherever possible. Meanwhile, the use of highly recyclable plastics has resulted in over 90%* recyclability. |
| Use of lead has also been reduced to less than 1/10 that of 1996 levels. |
* | According to Hondas own measurement standards |
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¨Odyssey ALMAS
The M Type is also being made available as an Odyssey ALMAS with a lift-up front passenger seat. The new Odyssey ALMAS will be available starting December 5th at Honda automobile dealers throughout Japan.
The Odyssey ALMAS allows the electrically operated passenger seat to be rotated and raised or lowered with the press of a switch, for superior ease of vehicle ingress and egress and reduced burden on caregivers. A wheelchair net and protective cover are also provided as standard equipment, allowing a wheelchair to be folded and stored neatly away in the luggage space without the need to fold down the 3rd-row seats. All outfitting is handled by Honda Tokuso Co., Ltd.
Odyssey ALMAS (FF, optional equipment)
<ALMAS>
The ALMAS derives its name from alma, the Spanish word for heart, signifying that Honda has poured its heart into this vehicle.
lOdyssey ALMASManufacturers suggested domestic retail price
(consumption tax not included; units: ¥1,000)
Type |
Engine |
Max. Output |
Drive Wheels |
Transmission |
Price |
|||||||
M |
2.4L DOHC i-VTEC |
118kW (160PS) |
FF | CVT +7-speed mode |
2,743*1 | |||||||
4WD |
5AT+S-matic | 2,963*2 |
Indicates model shown in photo
*1, 2 | Price includes CD player with AM/FM tuner, as the Odyssey ALMAS is not available without audio. |
m | Body colors |
Premium White Pearl*; Satin Silver Metallic; Nighthawk Black Pearl; Grayish Mauve Metallic; Indigo Blue Pearl; Desert Mist Metallic; Meteor Silver Metallic; Royal Ruby Red Pearl
* | Premium White Pearl: +¥30,000 |
m | Principle factory options |
AFS (Adaptive Front-lighting System, with auto-leveling function): |
+¥50,000 | |
Voice-operated Honda HDD navigation system with rear camera + Progressive Commander (with 8-inch wide display and Inter Navi Premium Club): |
+¥345,000 | |
Front power glass sun roof: |
+¥80,000 | |
Power utility package (Honda Smart Card key system, AC 100V outlet, driver-side 8-way power seat (sliding, reclining, height front and rear)): |
+¥130,000 | |
Comfort package (triple-zone control, fully automatic air conditioner; auto light control; electrically heated front window): |
+¥70,000 |
Publicity information for the Odyssey and Odyssey ALMAS is available from the following URL:
http://www.honda.co.jp/PR/
(This site is intended solely for the use of journalists.)
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Ref.#C03-078
Honda Overseas Production Up 19.7% In September
October 24, 2003Honda Motor Co., Ltd., announced today that overseas production increased 19.7% in September over the same month in 2002, the 33rd consecutive month of growth in that category. Global production was up 3.4% for the month.
For the first nine months of 2003, overseas production was up 18.6%, led by a 12.6% increase in the United States and a 64.2% increase in Asia.
Domestic sales were down 24.8% in September. Fit again was again the best-selling vehicle for Honda in Japan, totaling 14,420 units. Hondas Life mini-vehicle (12,737 units) and Step-WGN (11,000 units) were the other best-sellers for the month.
Exports in September were down 6.6%, the third straight month of decline, because of decreased shipments to North America and Asia.
HONDA PRODUCTION, SALES AND EXPORTS SEPTEMBER 2003
PRODUCTION
September |
Annual Total 2003 |
Fiscal Year** Total |
|||||||||||||
Units |
vs.9/02 |
Units |
vs.2002 |
Units |
vs.02FY |
||||||||||
Domestic (CBU+CKD) |
105,561 | -14.1 | % | 859,784 | -16.5 | % | 550,646 | -19.7 | % | ||||||
Overseas (CBU only) |
157,263 | +19.7 | % | 1,352,464 | +18.6 | % | 887,157 | +14.9 | % | ||||||
Worldwide Total * | 262,824 | +3.4 | % | 2,212,248 | +1.9 | % | 1,437,803 | -1.4 | % |
* excludes overseas CKD
** (04/2003~09/2003)
REGIONAL PRODUCTION
September |
Annual Total 2003 |
Fiscal Year** Total |
|||||||||||||
Units |
vs.9/02 |
Units |
vs.2002 |
Units |
vs.02FY |
||||||||||
North America |
106,553 | +14.9 | % | 943,095 | +10.6 | % | 606,402 | +5.9 | % | ||||||
(USA only) |
71,871 | +15.1 | % | 647,300 | +12.6 | % | 416,382 | +6.9 | % | ||||||
Europe |
16,485 | -4.9 | % | 137,631 | +6.8 | % | 85,802 | -0.9 | % | ||||||
Asia |
28,356 | +60.3 | % | 224,094 | +64.2 | % | 160,490 | +63.1 | % | ||||||
Others |
5,869 | +62.1 | % | 47,644 | +109.4 | % | 34,463 | +133.0 | % | ||||||
Regional Total |
157,263 | +19.7 | % | 1,352,464 | +18.6 | % | 887,157 | +14.9 | % |
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SALES
Vehicle type |
September |
Annual Total2003 |
Fiscal Year** Total |
|||||||||||||||
Units |
vs.9/02 |
Units |
vs.2002 |
Units |
vs.02FY |
|||||||||||||
Passenger Cars & Light Trucks |
44,002 | -20.2 | % | 372,740 | -18.9 | % | 217,482 | -25.7 | % | |||||||||
(Imports) |
(1,606 | ) | +134.1 | % | (16,634 | ) | +132.7 | % | (11,156 | ) | +150.6 | % | ||||||
Mini Vehicles |
22,209 | -32.5 | % | 174,987 | -22.7 | % | 112,948 | -22.8 | % | |||||||||
Honda Brand TTL |
66,211 | -24.8 | % | 547,727 | -20.1 | % | 330,430 | -24.7 | % | |||||||||
EXPORTS
September |
Annual Total2003 |
Fiscal Year** Total |
|||||||||||||
Units |
vs.9/02 |
Units |
vs.2002 |
Units |
vs.02FY |
||||||||||
North America |
21,796 | -18.9 | % | 187,772 | -14.3 | % | 127,600 | -14.2 | % | ||||||
(USA only) |
19,459 | -19.3 | % | 166,674 | -14.2 | % | 114,206 | -13.0 | % | ||||||
Europe |
4,691 | +23.5 | % | 86,097 | +60.8 | % | 52,807 | +35.4 | % | ||||||
Asia |
1,399 | -37.0 | % | 15,104 | -41.8 | % | 10,479 | -46.9 | % | ||||||
Others |
9,102 | +35.5 | % | 57,700 | +22.5 | % | 41,543 | +22.3 | % | ||||||
Total |
36,988 | -6.6 | % | 346,673 | +0.3 | % | 232,429 | -3.8 | % | ||||||
For further information, please contact:
Masaya Nagai
Shigeki Endo
Tatsuya David Iida
Honda Motor Co., Ltd. Corporate Communications Division
Telephone: 03-5412-1512
Facsimile: 03-5412-1545
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HONDA MOTOR CO., LTD. REPORTS
CONSOLIDATED FINANCIAL RESULTS
FOR THE FISCAL SECOND QUARTER AND
THE FIRST HALF ENDED SEPTEMBER 30, 2003
Tokyo, October 28, 2003Honda Motor Co., Ltd. today announced its consolidated financial results for the fiscal second quarter and the first half ended September 30, 2003.
Second Quarter Results
Hondas consolidated net income for the fiscal second quarter ended September 30, 2003 totaled JPY137.3 billion (USD 1,235 million), an increase of 57.6% from the corresponding period in 2002. Basic net income per Common Share for the quarter amounted to JPY 143.33 (USD 1.29), compared to JPY 89.54 for the same period in 2002. Two of Hondas American Depositary Shares represent one Common Share.
Unit sales in all of Hondas business categories, namely motorcycles, automobiles and power products, increased during the fiscal second quarter and consolidated net sales and other operating revenue (herein referred to as revenue) for the quarter amounted to JPY 2,017.2 billion (USD 18,132 million), an increase of 5.2% over the corresponding period in 2002.
Revenue included currency translation effects, which had a negative impact on foreign currency denominated revenue from Hondas overseas subsidiaries translated into yen. Honda estimates that had the exchange rate of yen remained unchanged from the same period in 2002, revenue for the quarter would have increased by approximately 5.5%.
Consolidated operating income for the fiscal second quarter totaled JPY 151.6 billion (USD 1,363 million), a decrease of 0.9% compared to the corresponding period in 2002. This decrease in operating income was primarily due to reduced revenue from decreased sales in Japan and an increase in research and development expenses, offsetting positive impacts, such as depreciation of the yen, ongoing cost reduction efforts and decrease in selling, general and administrative (SG&A) expenses.
1
Consolidated income before income taxes for the quarter totaled JPY 183.8 billion (USD 1,653 million), an increase of 67.2% from the corresponding period in 2002.
With respect to Hondas sales in the fiscal second quarter by business category, motorcycle unit sales increased by 8.7% to 2,218,000 units, and revenue decreased 5.1%, to JPY 233.5 billion (USD 2,099 million).
Hondas unit sales of automobiles increased by 3.2% to 735,000 units, due to higher sales in North America and Asia. Revenue increased 6.9%, to JPY 1,646.2 billion (USD 14,798 million), during the quarter.
Revenue from financial services increased 7.0% to JPY63.5 billion (USD 572 million).
Unit sales of power products totaled 978,000 units, an increase of 10.5% compared to the corresponding period in 2002. Strong sales in North America and Europe were the major factor for this increase in unit sales. Revenue from power products and other businesses increased by 4.1% to JPY 76.8 billion (USD 691 million).
First Half-Year Results
Hondas consolidated net income for the first six months ended September 30, 2003 totaled JPY 239.1 billion (USD 2,150 million), an increase of 22.8% from the previous year. Basic income per Common Share for the fiscal first half amounted to JPY 249.34 (USD 2.24), compared to JPY 199.98 for the corresponding period a year ago.
Consolidated net sales and other operating revenue for the six month period amounted to JPY 4,025.4 billion (USD 36,184 million), an increase of 4.5% from last year.
Revenue included the negative effect of currency translation, and Honda estimates that if the exchange rate of the yen had not changed from the previous year, revenue for the year would have increased by approximately 6.9%.
Consolidated operating income for the fiscal first half totaled JPY 301.8 billion (USD 2,713 million), a decrease of 6.8% compared to the corresponding period last year. This decrease in operating income was primarily due to negative impacts, such as appreciation of the yen, reduced revenue from decreased sales in Japan, an increase in selling, general and administrative (SG&A) expenses, which offset positive impacts, including Hondas cost reduction efforts.
2
Consolidated income before income taxes for the fiscal first half totaled JPY 331.8 billion (USD 2,983 million), an increase of 21.3% compared to the previous year.
With respect to Hondas sales for the fiscal first half by business category, motorcycle unit sales increased 9.1% to 4,219,000 units, due mainly to strong sales in Asia, however revenue decreased 4.6% to JPY 475.0 billion (USD 4,270 million). This decrease in revenue was due primarily to appreciation of the yen and a sales decrease in North America.
Both Hondas unit sales and revenue related to automobiles for the fiscal first half increased by 2.6% to 1,443,000 units, and 5.7% to JPY 3,267.2 billion (USD 29,369 million),respectively. The major contributing factors to this increase in unit sales were strong sales of the Element and all-new Accord in North America and continued sales growth in Asia, which offset the negative impact from appreciation of the yen.
Revenue from financial services increased 7.3% to JPY127.5 billion (USD 1,146 million).
Unit sales of power products totaled 2,195,000 units, an increase of 9.4% compared to the previous year. Higher sales in North America were the major factor in this increase in unit sales. Revenue from power products and other businesses increased by 6.5% to JPY 162.5 billion (USD 1,461 million) due mainly to higher revenue from power products business.
3
Forecasts for the fiscal year ending March 31, 2004
The U.S. economies, Japan and other regions are expected to recover slowly in the foreseeable future. Fears of a slowdown in the global economy and an impact of currency movement are anticipated to remain, and competition in the Japanese market is expected to intensify amid continuing weak consumer spending.
Under such circumstances, in connection with its forecasts of the financial results for the fiscal year ending March 31, 2004, Honda projects the consolidated and unconsolidated results as below:
FY2004 Forecasts for consolidated results
In billions of yen |
Changes from FY 2003 |
||||
Net sales and other operating revenue |
8,220 | +3.1 | % | ||
Income before income taxes |
648 | +6.3 | % | ||
Net income |
470 | +10.2 | % |
FY2004 Forecasts for unconsolidated results
In billions of Yen |
Changes from FY2003 |
||||
Net sales |
3,310 | -0.4 | % | ||
Ordinary profit |
278 | +14.6 | % | ||
Net income |
202 | +18.8 | % |
These forecasts are based on the assumption that the exchange rates for the yen to the U.S. dollar and the euro for the current fiscal year will average JPY 115 and JPY 127, respectively.
Honda projects that the year-end cash dividend will be JPY 19 per share of common stock. Total cash dividends for the term will be JPY 38.
This announcement contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934. Hondas actual results could materially differ from those contained in these forward-looking statements as a result of numerous factors outside of Hondas control. Such factors include general economic conditions in Hondas principal markets, foreign exchange rates between the Japanese yen and other major currencies, as well as other factors detailed from time to time in Hondas reports filed with the U.S. Securities and Exchange Commission.
4
[1] Unit Sales Breakdown
(In thousands of units) |
||||||||||||
Three months Sep. 30, 2003 |
Three months Sep. 30, 2002 |
Six months Sep. 30, 2003 |
Six months Sep. 30, 2002 |
|||||||||
MOTORCYCLES |
||||||||||||
Japan |
120 | 121 | 214 | 215 | ||||||||
(motorcycles included above) |
(120 | ) | (121 | ) | (214 | ) | (215 | ) | ||||
North America |
140 | 172 | 239 | 291 | ||||||||
(motorcycles included above) |
(57 | ) | (79 | ) | (122 | ) | (138 | ) | ||||
Europe |
57 | 57 | 158 | 155 | ||||||||
(motorcycles included above) |
(54 | ) | (54 | ) | (153 | ) | (150 | ) | ||||
Asia |
1,691 | 1,485 | 3,189 | 2,817 | ||||||||
(motorcycles included above) |
(1,691 | ) | (1,485 | ) | (3,189 | ) | (2,817 | ) | ||||
Others |
210 | 205 | 419 | 389 | ||||||||
(motorcycles included above) |
(207 | ) | (205 | ) | (414 | ) | (384 | ) | ||||
Total |
2,218 | 2,040 | 4,219 | 3,867 | ||||||||
(motorcycles included above) |
(2,129 | ) | (1,944 | ) | (4,092 | ) | (3,704 | ) | ||||
AUTOMOBILES |
||||||||||||
Japan |
176 | 213 | 329 | 426 | ||||||||
North America |
385 | 365 | 782 | 732 | ||||||||
Europe |
57 | 58 | 113 | 104 | ||||||||
Asia |
84 | 49 | 163 | 95 | ||||||||
Others |
33 | 27 | 56 | 49 | ||||||||
Total |
735 | 712 | 1,443 | 1,406 | ||||||||
POWER PRODUCTS |
||||||||||||
Japan |
135 | 124 | 245 | 252 | ||||||||
North America |
419 | 383 | 1,053 | 900 | ||||||||
Europe |
177 | 157 | 421 | 424 | ||||||||
Asia |
163 | 157 | 317 | 312 | ||||||||
Others |
84 | 64 | 159 | 118 | ||||||||
Total |
978 | 885 | 2,195 | 2,006 |
5
[2] Net Sales Breakdown
(A) For the three months ended September 30, 2003 and 2002
(In millions of Yen) |
||||||||||
Three months ended Sep. 30, 2003 |
Three months ended Sep. 30, 2002 |
|||||||||
MOTORCYCLE BUSINESS |
||||||||||
Japan |
27,219 | (11.7 | %) | 26,442 | (10.8 | %) | ||||
North America |
71,240 | (30.4 | %) | 89,641 | (36.4 | %) | ||||
Europe |
35,519 | (15.2 | %) | 30,801 | (12.5 | %) | ||||
Asia |
58,976 | (25.3 | %) | 55,025 | (22.4 | %) | ||||
Others |
40,563 | (17.4 | %) | 44,060 | (17.9 | %) | ||||
Total |
233,517 | (100.0 | %) | 245,969 | (100.0 | %) | ||||
AUTOMOBILE BUSINESS |
||||||||||
Japan |
337,063 | (20.5 | %) | 381,222 | (24.8 | %) | ||||
North America |
982,749 | (59.7 | %) | 906,810 | (58.9 | %) | ||||
Europe |
125,871 | (7.6 | %) | 110,890 | (7.2 | %) | ||||
Asia |
139,601 | (8.5 | %) | 96,134 | (6.2 | %) | ||||
Others |
60,973 | (3.7 | %) | 45,046 | (2.9 | %) | ||||
Total |
1,646,257 | (100.0 | %) | 1,540,102 | (100.0 | %) | ||||
FINANCIAL SERVICES |
||||||||||
Japan |
4,944 | (7.9 | %) | 4,848 | (8.2 | %) | ||||
North America |
55,099 | (87.6 | %) | 52,854 | (89.4 | %) | ||||
Europe |
1,824 | (2.9 | %) | 1,390 | (2.4 | %) | ||||
Asia |
207 | (0.3 | %) | 14 | (0.0 | %) | ||||
Others |
821 | (1.3 | %) | | ( |
) | ||||
Total |
62,895 | (100.0 | %) | 59,106 | (100.0 | %) | ||||
POWER PRODUCT & OTHER BUSINESSES |
||||||||||
Japan |
29,510 | (39.6 | %) | 30,314 | (42.4 | %) | ||||
North America |
23,659 | (31.8 | %) | 22,152 | (30.9 | %) | ||||
Europe |
10,695 | (14.3 | %) | 10,190 | (14.2 | %) | ||||
Asia |
6,638 | (8.9 | %) | 5,848 | (8.2 | %) | ||||
Others |
4,032 | (5.4 | %) | 3,094 | (4.3 | %) | ||||
Total |
74,534 | (100.0 | %) | 71,598 | (100.0 | %) | ||||
TOTAL |
||||||||||
Japan |
398,736 | (19.8 | %) | 442,826 | (23.1 | %) | ||||
North America |
1,132,747 | (56.1 | %) | 1,071,457 | (55.9 | %) | ||||
Europe |
173,909 | (8.6 | %) | 153,271 | (8.0 | %) | ||||
Asia |
205,422 | (10.2 | %) | 157,021 | (8.2 | %) | ||||
Others |
106,389 | (5.3 | %) | 92,200 | (4.8 | %) | ||||
Total |
2,017,203 | (100.0 | %) | 1,916,775 | (100.0 | %) |
Explanatory Note:
1. | The geographical breakdown of net sales is based on the location of affiliated and unaffiliated customers. |
2. | Net sales of power product & other businesses include revenue from sales of power products and related parts, leisure businesses, trading and finance subsidiaries. |
6
[2] Net Sales Breakdowncontinued
(B) For the six months ended September 30, 2003 and 2002
(In millions of Yen) |
||||||||||
Six months ended Sep. 30, 2003 |
Six months ended Sep. 30, 2002 |
|||||||||
MOTORCYCLE BUSINESS |
||||||||||
Japan |
50,903 | (10.7 | %) | 51,975 | (10.4 | %) | ||||
North America |
130,534 | (27.5 | %) | 164,254 | (33.0 | %) | ||||
Europe |
97,799 | (20.6 | %) | 87,221 | (17.5 | %) | ||||
Asia |
119,881 | (25.2 | %) | 107,256 | (21.6 | %) | ||||
Others |
75,954 | (16.0 | %) | 87,128 | (17.5 | %) | ||||
Total |
475,071 | (100.0 | %) | 497,834 | (100.0 | %) | ||||
AUTOMOBILE BUSINESS |
||||||||||
Japan |
631,247 | (19.3 | %) | 758,141 | (24.5 | %) | ||||
North America |
2,015,790 | (61.7 | %) | 1,862,010 | (60.2 | %) | ||||
Europe |
252,169 | (7.7 | %) | 204,265 | (6.6 | %) | ||||
Asia |
263,093 | (8.1 | %) | 177,870 | (5.8 | %) | ||||
Others |
104,959 | (3.2 | %) | 89,227 | (2.9 | %) | ||||
Total |
3,267,258 | (100.0 | %) | 3,091,513 | (100.0 | %) | ||||
FINANCIAL SERVICES |
||||||||||
Japan |
10,303 | (8.2 | %) | 11,273 | (9.6 | %) | ||||
North America |
111,193 | (88.1 | %) | 103,240 | (88.2 | %) | ||||
Europe |
3,561 | (2.8 | %) | 2,589 | (2.2 | %) | ||||
Asia |
358 | (0.3 | %) | 14 | (0.0 | %) | ||||
Others |
821 | (0.6 | %) | | ( |
) | ||||
Total |
126,236 | (100.0 | %) | 117,116 | (100.0 | %) | ||||
POWER PRODUCT & OTHER BUSINESSES |
||||||||||
Japan |
57,579 | (36.7 | %) | 55,657 | (37.8 | %) | ||||
North America |
52,008 | (33.2 | %) | 51,035 | (34.7 | %) | ||||
Europe |
25,724 | (16.4 | %) | 23,691 | (16.1 | %) | ||||
Asia |
14,272 | (9.1 | %) | 10,897 | (7.4 | %) | ||||
Others |
7,283 | (4.6 | %) | 5,868 | (4.0 | %) | ||||
Total |
156,866 | (100.0 | %) | 147,148 | (100.0 | %) | ||||
TOTAL |
||||||||||
Japan |
750,032 | (18.6 | %) | 877,046 | (22.8 | %) | ||||
North America |
2,309,525 | (57.4 | %) | 2,180,539 | (56.6 | %) | ||||
Europe |
379,253 | (9.4 | %) | 317,766 | (8.2 | %) | ||||
Asia |
397,604 | (9.9 | %) | 296,037 | (7.7 | %) | ||||
Others |
189,017 | (4.7 | %) | 182,223 | (4.7 | %) | ||||
Total |
4,025,431 | (100.0 | %) | 3,853,611 | (100.0 | %) |
Explanatory Note:
1. | The geographical breakdown of net sales is based on the location of affiliated and unaffiliated customers. |
Explanatory Note:
2. | Net sales of power product & other business include revenue from sales of power products and related parts, leisure businesses, trading and finance subsidiaries. |
7
[3] Consolidated Financial Summary
(For the three months and six months ended September 30, 2003 and 2002)
Financial Highlights
(In millions of Yen) | ||||||||||||||
Three months ended Sep. 30, 2003 |
% Change |
Three months ended Sep. 30, 2002 |
Six months ended Sep. 30, 2003 |
% Change |
Six months ended Sep. 30, 2002 | |||||||||
Net sales and other operating revenue |
2,017,203 | 5.2 | % | 1,916,775 | 4,025,431 | 4.5 | % | 3,853,611 | ||||||
Operating income |
151,688 | -0.9 | % | 153,046 | 301,871 | -6.8 | % | 323,869 | ||||||
Income before income taxes |
183,886 | 67.2 | % | 109,997 | 331,881 | 21.3 | % | 273,701 | ||||||
Net income |
137,359 | 57.6 | % | 87,181 | 239,178 | 22.8 | % | 194,779 | ||||||
(In Yen) | ||||||||||||||
Net income per |
||||||||||||||
Common Share |
143.33 | 89.54 | 249.34 | 199.98 | ||||||||||
American Depositary Share |
71.66 | 44.77 | 124.67 | 99.99 |
(In millions of U.S. Dollar) | ||||
Three months ended Sep. 30, 2003 |
Six months ended Sep. 30, 2003 | |||
Net sales and other operating revenue |
18,132 | 36,184 | ||
Operating income |
1,363 | 2,713 | ||
Income before income taxes |
1,653 | 2,983 | ||
Net income |
1,235 | 2,150 | ||
(In U.S. Dollar) | ||||
Net income per |
||||
Common Share |
1.29 | 2.24 | ||
American Depositary Share |
0.64 | 1.12 |
8
[4] Consolidated Statements of Income and Retained Earnings (Unaudited)
(A) For the three months ended September 30, 2003 and 2002
(In millions of Yen) | ||||
Three months ended Sep. 30, 2003 |
Three months ended Sep. 30, 2002 | |||
Net sales and other operating revenue |
2,017,203 | 1,916,775 | ||
Operating costs and expenses: |
||||
Cost of sales |
1,396,459 | 1,296,008 | ||
Selling, general and administrative |
352,928 | 362,721 | ||
Research and development |
116,128 | 105,000 | ||
Operating income |
151,688 | 153,046 | ||
Other income: |
||||
Interest |
3,393 | 1,727 | ||
Other |
37,262 | 225 | ||
Other expenses: |
||||
Interest |
2,158 | 2,057 | ||
Other |
6,299 | 42,944 | ||
Income before income taxes |
183,886 | 109,997 | ||
Income taxes |
69,780 | 39,265 | ||
Income before equity in income of affiliates |
114,106 | 70,732 | ||
Equity in income of affiliates |
23,253 | 16,449 | ||
Net income |
137,359 | 87,181 | ||
Retained earnings: |
||||
Balance at beginning of period |
3,245,153 | 2,858,539 | ||
Cash dividends paid |
| | ||
Transfer to legal reserves |
| | ||
Balance at end of period |
3,382,512 | 2,945,720 | ||
(In Yen) | ||||
Net income per |
||||
Common Share |
143.33 | 89.54 | ||
American Depositary Share |
71.66 | 44.77 |
9
[4] Consolidated Statements of Income and Retained Earningscontinued
(B) For the six months ended September 30, 2003 and 2002
(In millions of Yen) |
||||||
Six months ended Sep. 30, 2003 |
Six months ended Sep. 30, 2002 |
|||||
Net sales and other operating revenue |
4,025,431 | 3,853,611 | ||||
Operating costs and expenses: |
||||||
Cost of sales |
2,784,909 | 2,614,864 | ||||
Selling, general and administrative |
719,779 | 701,855 | ||||
Research and development |
218,872 | 213,023 | ||||
Operating income |
301,871 | 323,869 | ||||
Other income: |
||||||
Interest |
5,297 | 4,093 | ||||
Other |
39,412 | 5,541 | ||||
Other expenses: |
||||||
Interest |
5,527 | 6,377 | ||||
Other |
9,172 | 53,425 | ||||
Income before income taxes |
331,881 | 273,701 | ||||
Income taxes |
128,702 | 107,184 | ||||
Income before equity in income of affiliates |
203,179 | 166,517 | ||||
Equity in income of affiliates |
35,999 | 28,262 | ||||
Net income |
239,178 | 194,779 | ||||
Retained earnings: |
||||||
Balance at beginning of period |
3,161,664 | 2,765,600 | ||||
Cash dividends paid |
(15,386 | ) | (14,616 | ) | ||
Transfer to legal reserves |
(2,944 | ) | (43 | ) | ||
Balance at end of period |
3,382,512 | 2,945,720 | ||||
(In Yen) |
||||||
Net income per |
||||||
Common Share |
249.34 | 199.98 | ||||
American Share |
124.67 | 99.99 |
10
[5] Consolidated Balance Sheets
(In millions of Yen) | ||||||
Assets | Sep. 30, 2003 |
Mar. 31, 2003 |
Sep. 30, 2002 | |||
(Unaudited) | (Audited) | (Unaudited) | ||||
Current assets: |
||||||
Cash and cash equivalents |
624,842 | 547,404 | 518,408 | |||
Trade accounts and notes receivable |
320,461 | 444,498 | 332,185 | |||
Finance subsidiaries receivables, net |
1,081,896 | 1,097,541 | 980,852 | |||
Inventories |
784,796 | 751,980 | 670,268 | |||
Deferred income taxes |
200,134 | 202,376 | 205,290 | |||
Other current assets |
311,660 | 248,561 | 227,826 | |||
Total current assets |
3,323,789 | 3,292,360 | 2,934,829 | |||
Finance subsidiariesreceivables, net |
2,416,333 | 2,230,020 | 2,024,071 | |||
Investments and advances |
482,839 | 412,971 | 395,138 | |||
Property, plant and equipment, at cost: |
||||||
Land |
347,596 | 342,991 | 336,708 | |||
Buildings |
932,332 | 942,747 | 912,139 | |||
Machinery and equipment |
1,986,273 | 2,023,724 | 2,018,426 | |||
Construction in progress |
93,159 | 72,112 | 96,542 | |||
3,359,360 | 3,381,574 | 3,363,815 | ||||
Less accumulated depreciation |
1,970,848 | 1,987,231 | 1,987,880 | |||
Net property, plant and equipment |
1,388,512 | 1,394,343 | 1,375,935 | |||
Other assets |
380,314 | 351,597 | 241,612 | |||
Total assets |
7,991,787 | 7,681,291 | 6,971,585 | |||
11
[5] Consolidated Balance Sheetscontinued
(In millions of Yen) |
|||||||||
Liabilities and Stockholders Equity |
|||||||||
Sep. 30, 2003 |
Mar. 31, 2003 |
Sep. 30, 2002 |
|||||||
(Unaudited) | (Audited) | (Unaudited) | |||||||
Current liabilities: |
|||||||||
Bank loans and commercial paper |
803,532 | 877,954 | 937,819 | ||||||
Current portion of long-term debt |
405,533 | 304,342 | 142,231 | ||||||
Trade payables |
766,238 | 830,671 | 775,584 | ||||||
Accrued expenses |
789,475 | 777,492 | 719,596 | ||||||
Income taxes payable |
65,439 | 64,179 | 66,269 | ||||||
Other current liabilities |
324,475 | 267,752 | 232,643 | ||||||
Total current liabilities |
3,154,692 | 3,122,390 | 2,874,142 | ||||||
Long-term debt |
1,283,072 | 1,140,182 | 953,833 | ||||||
Other liabilities |
810,042 | 788,999 | 550,260 | ||||||
Total liabilities |
5,247,806 | 5,051,571 | 4,378,235 | ||||||
Stockholders equity: |
|||||||||
Common stock |
86,067 | 86,067 | 86,067 | ||||||
Capital surplus |
172,719 | 172,529 | 172,529 | ||||||
Legal reserves |
32,335 | 29,391 | 29,012 | ||||||
Retained earnings |
3,382,512 | 3,161,664 | 2,945,720 | ||||||
Adjustments from foreign currency translation |
(567,690 | ) | (469,472 | ) | (455,149 | ) | |||
Net unrealized gains on marketable equity securities |
31,544 | 14,820 | 12,611 | ||||||
Minimum pension liabilities adjustments |
(308,384 | ) | (308,513 | ) | (187,824 | ) | |||
Accumulated other comprehensive income (loss |
(844,530 | ) | (763,165 | ) | (630,362 | ) | |||
Treasury Stock |
(85,122 | ) | (56,766 | ) | (9,616 | ) | |||
Total stockholders equity |
2,743,981 | 2,629,720 | 2,593,350 | ||||||
Total liabilities and stockholders equity |
7,991,787 | 7,681,291 | 6,971,585 | ||||||
12
[6] Consolidated Statements of Cash Flows
(In millions of Yen) |
||||||
Six months ended |
Six months ended |
|||||
Sep. 30, 2003 |
Sep. 30, 2002 |
|||||
Cash flows from operating activities: |
||||||
Net income |
239,178 | 194,779 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||
Depreciation |
103,592 | 102,105 | ||||
Deferred income taxes |
66,145 | (8,713 | ) | |||
Equity in income of affiliates |
(35,999 | ) | (28,262 | ) | ||
Loss on fair value adjustment of derivative instrument (profit) |
(44,410 | ) | 43,462 | |||
Decrease (increase) in: |
||||||
Trade accounts and notes receivable |
117,169 | 97,858 | ||||
Inventories |
(50,251 | ) | (62,948 | ) | ||
Increase (decrease) in trade payables |
(36,811 | ) | (26,445 | ) | ||
Other, net |
(56,008 | ) | 60,393 | |||
Net cash provided by operating activities |
302,605 | 372,229 | ||||
Cash flows from investing activities: |
||||||
Decrease (increase) in investments and advances |
21,109 | 11,785 | ||||
Capital Expenditures |
(128,033 | ) | (133,290 | ) | ||
Proceeds from sales of property, plant and equipment |
7,609 | 5,517 | ||||
Decrease (increase) in finance subsidiaries-receivables |
(425,584 | ) | (417,561 | ) | ||
Net cash used in investing activities |
(524,899 | ) | (533,549 | ) | ||
Cash flows from financing activities: |
||||||
Increase (decrease) in short-term debt |
19,679 | (4,164 | ) | |||
Proceeds from long-term debt |
412,544 | 349,893 | ||||
Repayment of long-term debt |
(76,343 | ) | (229,568 | ) | ||
Acquisition of treasury stock |
(28,769 | ) | (9,567 | ) | ||
Cash dividends paid |
(15,386 | ) | (14,616 | ) | ||
Increase (decrease) in commercial paper classified as long-term debt |
354 | 2,069 | ||||
Net cash provided by (used in) financing activities |
312,079 | 94,047 | ||||
Effect of exchange rate changes on cash and cash equivalents |
(12,347 | ) | (23,760 | ) | ||
Net change in cash and cash equivalents |
77,438 | (91,033 | ) | |||
Cash and cash equivalents at beginning of year |
547,404 | 609,441 | ||||
Cash and cash equivalents at end of year |
624,842 | 518,408 | ||||
13
[ 7 ] Segment Information |
(A) Business Segment Information
For the six months ended September 30, 2002 | (In millions of Yen) | ||||||||||||||
Motor- cycle Business |
Auto- mobile Business |
Financial Services |
Other Businesses |
Total |
Eliminations |
Consolidated | |||||||||
Net sales and other |
|||||||||||||||
operating revenue: |
|||||||||||||||
Sales to |
|||||||||||||||
unaffiliated customers |
475,071 | 3,267,258 | 126,236 | 156,866 | 4,025,431 | | 4,025,431 | ||||||||
Intersegment sales |
0 | 0 | 1,311 | 5,707 | 7,018 | (7,018 | ) | | |||||||
Total |
475,071 | 3,267,258 | 127,547 | 162,573 | 4,032,449 | (7,018 | ) | 4,025,431 | |||||||
Cost of sales, |
|||||||||||||||
S.G.A. and R&D expenses |
466,868 | 3,018,426 | 86,791 | 158,493 | 3,730,578 | (7,018 | ) | 3,723,560 | |||||||
Operating income |
8,203 | 248,832 | 40,756 | 4,080 | 301,871 | 0 | 301,871 | ||||||||
For the six months ended September 30, 2002 | (In millions of Yen) | ||||||||||||||
Motor- cycle Business |
Auto- mobile Business |
Financial Services |
Other Businesses |
Total |
Eliminations |
Consolidated | |||||||||
Net sales and other |
|||||||||||||||
operating revenue: |
|||||||||||||||
Sales to |
|||||||||||||||
unaffiliated customers |
497,834 | 3,091,513 | 117,116 | 147,148 | 3,853,611 | | 3,853,611 | ||||||||
Intersegment sales |
0 | 0 | 1,737 | 5,495 | 7,232 | (7,232 | ) | | |||||||
Total |
497,834 | 3,091,513 | 118,853 | 152,643 | 3,860,843 | (7,232 | ) | 3,853,611 | |||||||
Cost of sales, |
|||||||||||||||
S.G.A. and R&D expenses |
460,508 | 2,845,067 | 85,333 | 146,066 | 3,536,974 | (7,232 | ) | 3,529,742 | |||||||
Operating income |
37,326 | 246,446 | 33,520 | 6,577 | 323,869 | 0 | 323,869 | ||||||||
Explanatory Note:
1. | Segmentation of Business |
Business segment is based on Hondas business organization and the similarity of the principal products included within each segment as well as the relevant markets for such products. |
2. | Principal products of each segment |
Business |
Sales |
Principal Products | ||
Motorcycle |
Motorcycles, all-terrain vehicles (ATV), personal water craft and relevant parts |
Large-size motorcycles, mid-size motorcycles, motorized bicycles, all-terrain vehicles (ATV), personal water craft | ||
Automobile |
Automobiles and relevant parts |
Compact cars, sub-compact cars, minivehicles | ||
Financial Services |
Financial and insurance services |
N/A | ||
Power Product & Other businesses |
Power products and relevant parts, and others |
Power tillers, generators, general purpose engines, lawn mowers, outboard engine |
14
(B) Geographical Segment Information
The geographical segmentation is based on the location where sales originated.
For the six months ended September 30, 2003 | ( In millions of Yen) | ||||||||||||||||
Japan |
North- America |
Europe |
Asia |
Others |
Total |
Eliminations |
Consolidated | ||||||||||
Net sales and other |
|||||||||||||||||
operating revenue: |
|||||||||||||||||
Sales to |
|||||||||||||||||
unaffiliated customers |
871,082 | 2,316,190 | 373,035 | 311,499 | 153,625 | 4,025,431 | | 4,025,431 | |||||||||
Transfers between |
|||||||||||||||||
geographical segments |
1,015,869 | 62,777 | 98,798 | 27,465 | 5,819 | 1,210,728 | (1,210,728 | ) | | ||||||||
Total |
1,886,951 | 2,378,967 | 471,833 | 338,964 | 159,444 | 5,236,159 | (1,210,728 | ) | 4,025,431 | ||||||||
Cost of sales, |
|||||||||||||||||
S.G.A. and R&D expenses |
1,809,548 | 2,209,599 | 454,484 | 314,826 | 148,145 | 4,936,602 | (1,213,042 | ) | 3,723,560 | ||||||||
Operating income |
77,403 | 169,368 | 17,349 | 24,138 | 11,299 | 299,557 | 2,314 | 301,871 | |||||||||
For the six months ended September 30, 2002 | ( In millions of Yen) | ||||||||||||||||
Japan |
North- America |
Europe |
Asia |
Others |
Total |
Eliminations |
Consolidated | ||||||||||
Net sales and other |
|||||||||||||||||
operating revenue: |
|||||||||||||||||
Sales to |
|||||||||||||||||
unaffiliated customers |
989,145 | 2,187,855 | 319,762 | 213,967 | 142,882 | 3,853,611 | | 3,853,611 | |||||||||
Transfers between |
|||||||||||||||||
geographical segments |
928,269 | 67,177 | 64,036 | 11,829 | 2,513 | 1,073,824 | (1,073,824 | ) | | ||||||||
Total |
1,917,414 | 2,255,032 | 383,798 | 225,796 | 145,395 | 4,927,435 | (1,073,824 | ) | 3,853,611 | ||||||||
Cost of sales, |
|||||||||||||||||
S.G.A. and R&D expenses |
1,826,265 | 2,065,422 | 382,130 | 206,476 | 131,616 | 4,611,909 | (1,082,167 | ) | 3,529,742 | ||||||||
Operating income |
91,149 | 189,610 | 1,668 | 19,320 | 13,779 | 315,526 | 8,343 | 323,869 | |||||||||
Explanatory Note:
Segment of Geography
In addition to the four conventional regions, Japan, North America, Europe and Others, Asia is newly segmented from the first half.
(C) Overseas Sales
For the six months ended September 30, 2003 | (In millions of Yen) |
||||||||||||||
North- America |
Europe |
Asia |
Others |
Total |
|||||||||||
Overseas Sales |
2,309,525 | 379,253 | 397,604 | 189,017 | 3,275,399 | ||||||||||
Consolidated Sales |
4,025,431 | ||||||||||||||
Overseas Sales Ratio to Consolidated Sales |
57.4 | % | 9.4 | % | 9.9 | % | 4.7 | % | 81.4 | % |
For the six months ended September 30, 2001 | ( In millions of Yen) |
||||||||||||||
North- America |
Europe |
Asia |
Others |
Total |
|||||||||||
Overseas Sales |
2,180,539 | 317,766 | 296,037 | 182,223 | 2,976,565 | ||||||||||
Consolidated Sales |
3,853,611 | ||||||||||||||
Overseas Sales Ratio to Consolidated Sales |
56.6 | % | 8.2 | % | 7.7 | % | 4.7 | % | 77.2 | % | |||||
15
[8] (A) Consolidated Balance Sheets
divided into Non-financial services businesses and Finance Subsidiaries (Unaudited)
(In millions of Yen) |
||||||
Sep. 30, 2003 |
||||||
% of total |
||||||
Assets |
||||||
[ Non-financial services businesses ] |
||||||
Current Assets: |
3,008,470 | 37.6 | ||||
Cash and cash equivalents |
615,728 | |||||
Trade accounts and notes receivable |
331,024 | |||||
Inventories |
784,796 | |||||
Other current assets |
1,276,922 | |||||
Investments and advances |
621,708 | 7.8 | ||||
Property, plant and equipment, at cost |
1,371,379 | 17.2 | ||||
Other assets |
331,273 | 4.1 | ||||
Total assets |
5,332,830 | 66.7 | ||||
[ Finance Subsidiaries ] |
||||||
Cash and cash equivalents |
9,114 | 0.1 | ||||
Finance subsidiaries-short-term receivables, net |
1,097,290 | 13.7 | ||||
Finance subsidiaries-long-term receivables, net |
2,417,401 | 30.2 | ||||
Other assets |
198,846 | 2.6 | ||||
Total assets |
3,722,651 | 46.6 | ||||
Eliminations among subsidiaries |
(1,063,694 | ) | (13.3 | ) | ||
Total assets |
7,991,787 | 100.0 | ||||
Liabilities and Stockholders Equity |
||||||
[ Non-financial services businesses ] |
||||||
Current liabilities: |
1,919,306 | 24.0 | ||||
Short-term debt |
211,430 | |||||
Current portion of long-term debt |
8,943 | |||||
Trade payables |
770,288 | |||||
Accrued expenses |
663,830 | |||||
Other current liabilities |
264,815 | |||||
Long-term debt |
28,595 | 0.4 | ||||
Other liabilities |
810,206 | 10.1 | ||||
Total liabilities |
2,758,107 | 34.5 | ||||
[ Finance Subsidiaries ] |
||||||
Short-term debt |
1,339,999 | 16.8 | ||||
Current portion of long-term debt |
396,590 | 5.0 | ||||
Accrued expenses |
130,076 | 1.6 | ||||
Long-term debt |
1,265,100 | 15.8 | ||||
Other liabilities |
281,853 | 3.5 | ||||
Total liabilities |
3,413,618 | 42.7 | ||||
Eliminations among subsidiaries |
(923,919 | ) | (11.5 | ) | ||
Total liabilities |
5,247,806 | 65.7 | ||||
Common stock |
86,067 | 1.1 | ||||
Capital surplus |
172,719 | 2.2 | ||||
Legal reserves |
32,335 | 0.4 | ||||
Retained earnings |
3,382,512 | 42.3 | ||||
Accumulated other comprehensive income (loss) |
(844,530 | ) | (10.6 | ) | ||
Treasury stock |
(85,122 | ) | (1.1 | ) | ||
Total stockholders equity |
2,743,981 | 34.3 | ||||
Total liabilities and stockholders equity |
7,991,787 | 100.0 | ||||
16
[8] (B) Consolidated Statements of Cash Flows
divided into Non-financial services businesses and Finance Subsidiaries (Unaudited)
For the six months ended September 30, 2003 | (In millions of Yen) |
|||||
Non-financial services businesses |
Finance Subsidiaries |
|||||
Cash flows from operating activities: |
||||||
Net Income |
215,830 | 23,373 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: |
||||||
Depreciation |
103,397 | 195 | ||||
Deferred income taxes |
23,620 | 42,525 | ||||
Equity in income of affiliates |
(35,947 | ) | | |||
Loss on fair value adjustment of derivative instrument (profit) |
(42,848 | ) | (1,562 | ) | ||
Decrease (increase) in trade accounts and notes receivable |
112,349 | | ||||
Decrease (increase) in inventories |
(50,251 | ) | | |||
Increase (decrease) in trade payables |
(37,392 | ) | | |||
Other, net |
(35,087 | ) | (16,345 | ) | ||
Net cash provided by operating activities |
253,671 | 48,186 | ||||
Cash flows from investing activities: |
||||||
* Decrease (increase) in investments and advances |
33,460 | 19 | ||||
Capital expenditures |
(127,870 | ) | (163 | ) | ||
Proceeds from sales of property, plant and equipment |
5,014 | 2,595 | ||||
Decrease (increase) in finance subsidiaries-receivables |
| (430,018 | ) | |||
Net cash used in investing activities |
(89,396 | ) | (427,567 | ) | ||
Free cash flow (Cash flows from operating and investing activities) |
164,275 | (379,381 | ) | |||
Free cash flow of Non-financial services businesses excluding the increase in loans (amounting to 81,986 million yen) to Finance subsidiaries (Note) |
149,966 | | ||||
Cash flows from financing activities: |
||||||
* Increase (decrease) in short-term debt |
(22,570 | ) | 26,099 | |||
* Proceeds from long-term debt |
5,126 | 414,720 | ||||
* Repayment of long-term debt |
(5,684 | ) | (70,834 | ) | ||
Proceeds from issuance of common stock |
| 1,860 | ||||
Acquisition of treasury stock |
(28,769 | ) | | |||
Cash dividends paid |
(15,411 | ) | | |||
Increase (decrease) in commercial paper classified as long-term debt |
| 354 | ||||
Net cash provided by financing activities |
(67,308 | ) | 372,199 | |||
Effect of exchange rate changes on cash and cash equivalents |
(11,582 | ) | (765 | ) | ||
Net change in cash and cash equivalents |
85,385 | (7,947 | ) | |||
Cash and cash equivalents at beginning of year |
530,343 | 17,061 | ||||
Cash and cash equivalents at end of year |
615,728 | 9,114 | ||||
Note:
Non-financial services businesses loans to finance subsidiaries. These cash flows were included in the items of "Other net" of Non financial services businesses, and "Increase (decrease) in short-term debt" and "Repayment of long-term debt" of Finance subsidiaries (marked by *). Free cash flow of Non financial services businesses excluding the increase in lending to finance subsidiaries are stated for the readers' information.
17
Explanatory Notes:
1. | The Company prepares its consolidated financial statements in conformity with accounting principles generally accepted in the United States because the Company has issued American Depositary Receipts listed on the New York Stock Exchange and files reports with the U.S. Securities and Exchange Commission. All segment information, however, is prepared in accordance with a Ministerial Ordinance under the Securities and Exchange Law of Japan. |
2. | The average exchange rates for the fiscal second quarter ended September 30, 2003 were ¥117.60=U.S.$1 and ¥132.26=euro1. The average exchange rates for the corresponding period last year were ¥119.24=U.S.$1 and ¥117.32=euro1 |
3. | United States dollar amounts have been translated from yen solely for the convenience of the reader at the rate of ¥111.25=U.S.$1, the mean of the telegraphic transfer selling exchange rate and the telegraphic transfer buying exchange rate prevailing on the Tokyo foreign exchange market on September 30, 2003. |
4. | The Companys Common Stock-to-ADR exchange rate was changed from two shares of Common Stock to one ADR to one share of Common Stock to two ADRs, effective January 10, 2002. |
5. | The Company has adopted the provisions of Statement of Financial Accounting Standards (SFAS) No.130, Reporting Comprehensive Income. The following table represents components of the Companys comprehensive income. Other comprehensive income (loss) consists of changes in adjustments from foreign currency translation, net unrealized gains on marketable equity securities and minimum pension liabilities adjustment. |
Three months ended September 30, 2003 |
Three months ended September 30, 2002 |
|||||
(In millions of Yen) | ||||||
Net income |
137,359 | 87,181 | ||||
Other comprehensive income (loss) |
(106,329 | ) | (8,819 | ) | ||
Comprehensive income (loss) |
31,030 | 78,362 |
Six months ended September 30, 2003 |
Six months ended September 30, 2002 |
|||||
(In millions of Yen) |
||||||
Net income |
239,178 | 194,779 | ||||
Other comprehensive income (loss) |
(81,365 | ) | (151,187 | ) | ||
Comprehensive income (loss) |
157,813 | 43,592 |
6. | Certain reclassifications have been made to the prior years consolidated financial statements to conform those financial statements to the presentation used for the fiscal second quarter ended September 30, 2003. |
7. | The number of treasury stock has been excluded from the calculation for basic net income per common share. |
18
Unconsolidated Financial Summary
(Parent company only)
(For the six months ended September 30, 2003 and 2002)
1. The Board of Directors Meeting for Interim Financial Results
(Parent company only)
(1) Date on which the meeting was held: Octber 28, 2003 (Tue.)
(2) The matters resolved:
(A) Unconsolidated (parent company) financial results for the first half
(six months ended September 30, 2003) of the 80th fiscal period as specified hereunder.
(B) Interim dividend:
(a) JPY 19.00 per share of Common Stock
(b) Payment plans to commence on November 25, 2003 (Tue.)
2. Financial | Highlights |
(Parent company only)
(In millions of Yen) | ||||||
Six months ended Sep. 30, 2003 |
Six months ended |
Year ended Mar. 31, 2003 | ||||
Net sales |
1,580,708 | 1,625,558 | 3,322,719 | |||
Operating profit |
90,299 | 66,162 | 144,838 | |||
Ordinary profit |
152,131 | 120,762 | 242,680 | |||
Net income |
110,315 | 91,714 | 170,035 | |||
Net income per share |
115.00 | 94.17 | 174.63 | |||
Interim dividend per share |
19.00 | 16.00 | |
3. Financial | forecast for the Fiscal Year Ending March 31, 2004 |
(Parent company only)
(In millions of Yen) | ||
Fiscal year ending Mar. 31, 2004 | ||
Net sales |
3,310,000 | |
Ordinary profit |
278,000 | |
Net income |
202,000 |
(In Yen) | ||
Dividend per share for the term |
38.00 | |
Net income per share |
211.40 |
19
[1] Unit Sales Breakdown
(Parent company only)
(In thousands of units) |
|||||||||
Six months Sep. 30, 2003 |
Six months Sep. 30, 2003 |
Year ended |
|||||||
MOTORCYCLES |
|||||||||
Japan |
213 | 209 | 429 | ||||||
(motorcycles included above) |
(213 | ) | (209 | ) | (429 | ) | |||
Export |
347 | 426 | 776 | ||||||
(motorcycles included above) |
(186 | ) | (255 | ) | (446 | ) | |||
Total |
560 | 635 | 1,205 | ||||||
(motorcycles included above) |
(399 | ) | (464 | ) | (875 | ) | |||
AUTOMOBILES |
|||||||||
Japan |
326 | 449 | 871 | ||||||
(Mini vehicles included above) |
(113 | ) | (142 | ) | (265 | ) | |||
Export |
233 | 241 | 485 | ||||||
Total |
560 | 691 | 1,357 | ||||||
POWER PRODUCTS |
|||||||||
Japan |
238 | 253 | 473 | ||||||
Export |
2,007 | 1,686 | 4,075 | ||||||
Total |
2,246 | 1,939 | 4,548 |
20
[2] Net Sales Breakdown - continued
(Parent company only)
(In millions of Yen | ||||||
Six months ended Sep. 30, 2003 |
Six months ended Sep. 30, 2002 |
Year ended Mar. 31, 2003 | ||||
MOTORCYCLES |
||||||
Japan |
40,167 | 41,519 | 79,696 | |||
Export |
157,296 | 177,504 | 369,998 | |||
Total |
197,463 | 219,023 | 449,695 | |||
AUTOMOBILES |
||||||
Japan |
459,540 | 593,874 | 1,173,907 | |||
Export |
867,304 | 756,267 | 1,581,244 | |||
Total |
1,326,845 | 1,350,141 | 2,755,152 | |||
POWER PRODUCTS |
||||||
Japan |
10,137 | 10,843 | 23,028 | |||
Export |
46,261 | 45,549 | 94,842 | |||
Total |
56,399 | 56,392 | 117,871 | |||
TOTAL |
||||||
Japan |
509,845 | 646,236 | 1,276,633 | |||
Export |
1,070,862 | 979,321 | 2,046,086 | |||
Total |
1,580,708 | 1,625,558 | 3,322,719 |
Explanatory Notes:
1. | The summary unconsolidated financial information set forth above is derived from the complete unconsolidated financial information of the Company to be filed with the Securities and Exchange Commission on the Company's Form 6-K for the month of November 2003. |
2. | Unconsolidated financial statements have been prepared on the basis of generally accepted accounting principles in Japan in accordance with the Japanese Commercial Code. |
3. | The unit sales and yen amounts described above are rounded down to the nearest one thousand units and one million yen, respectively. |
4. | An accounting standard relating to royalty profit has been changed from the first half results. |
21
[3] Unconsolidated Statements of Income
(Parent company only)
(In millions of Yen) |
|||||||||
Six months ended Sep. 30, 2003 |
Six months ended Sep. 30, 2002 |
Year ended Mar. 31, 2003 |
|||||||
Net sales |
1,580,708 | 1,625,558 | 3,322,719 | ||||||
Cost of sales |
1,036,615 | 1,108,036 | 2,247,487 | ||||||
Selling, general and administrative expenses |
453,792 | 451,359 | 930,393 | ||||||
Operating profit |
90,299 | 66,162 | 144,838 | ||||||
Non-operating profit |
70,586 | 62,837 | 117,732 | ||||||
Non-operating expenses |
8,753 | 8,238 | 19,891 | ||||||
Ordinary Profit |
152,131 | 120,762 | 242,680 | ||||||
Extraordinary profit |
1,987 | 1,474 | 4,197 | ||||||
Extraordinary loss |
4,310 | 4,108 | 14,859 | ||||||
Income before income taxes |
149,809 | 118,128 | 232,018 | ||||||
Income taxes |
|||||||||
Current |
46,148 | 51,883 | 92,888 | ||||||
Deferred |
(6,654 | ) | (25,469 | ) | (30,905 | ) | |||
Net income |
110,315 | 91,714 | 170,035 | ||||||
Explanatory | Notes: |
1. | Research and development expenses for the six months amounted 219,847 million of yen. |
22
[4] Unconsolidated Balance Sheets
(Parent company only)
(In millions of Yen) |
|||||||||
Sep. 30, 2003 |
Mar. 31, 2003 |
Sep. 30, 2002 |
|||||||
Current assets |
843,731 | 829,444 | 783,642 | ||||||
Fixed assets |
1,274,329 | 1,231,887 | 1,217,210 | ||||||
Total assets |
2,118,061 | 2,061,331 | 2,000,853 | ||||||
Current liabilities |
481,579 | 525,315 | 500,231 | ||||||
Fixed liabilities |
131,066 | 114,761 | 91,079 | ||||||
Total liabilities |
612,646 | 640,077 | 591,311 | ||||||
Common stock |
86,067 | 86,067 | 86,067 | ||||||
Capital surplus |
170,504 | 168,912 | 168,912 | ||||||
Legal reserve |
21,516 | 21,516 | 21,516 | ||||||
Retained surplus |
1,274,266 | 1,179,817 | 1,117,056 | ||||||
Unrealized gains on securities |
|||||||||
available for sale |
38,183 | 21,707 | 25,606 | ||||||
Treasury stock |
(85,122 | ) | (56,766 | ) | (9,616 | ) | |||
Stockholders' equity |
1,505,415 | 1,421,254 | 1,409,541 | ||||||
Total liabilities and stockholders' equity |
2,118,061 | 2,061,331 | 2,000,853 | ||||||
23
Management Policy
Hondas business activities are based on fundamental corporate philosophies known as Respect for the Individual and The Three Joys.
Respect for the Individual defines Hondas relationship with its associates, business partners and society. It is based on sharing a commitment to initiative, equality and mutual trust among people.
It is Hondas belief that everyone who comes into contact with Hondas activities will gain a sense of satisfaction through the experience of buying, selling or creating Hondas products and services. This philosophy is expressed as The Three Joys.
With these corporate philosophies as the foundation, Hondas business is guided by the following Company Principle:
Maintaining a global viewpoint,
we are dedicated to supplying products of the highest quality
at a reasonable price for worldwide customer satisfaction
Honda actively works to share a sense of satisfaction with all of its customers as well as its shareholders, and to continue improving its corporate value.
Profit Redistribution Policy
The Company considers redistribution of profits to our shareholders as one of the most important management issues. Accordingly, the Company attempts to increase its corporate value while carrying out its operations from a global standpoint.
The Company intends to redistribute profits to our shareholders, with regard to its projected comprehensive cash needs/requirements, and to make distribution payments, while, taking into consideration the Companys long-term consolidated earnings performance.
In consideration of shareholder expectations, retained earnings will be applied toward financing R&D activities that are essential for the future growth of the Company and capital expenditures and investment programs that will expand its operations for the purpose of improving business results and strengthening the Companys financial condition.
Acquisition of the Companys common stock will also be implemented at the optimal timing with the aim of improving efficiency in its capital structure.
24
Preparing for the Future
The economies of the U.S., Japan and other regions are expected to recover slowly in the foreseeable future. Fears of a slowdown in the global economy and an impact of currency movements are anticipated to remain, and competition in the Japanese market is expected to intensify amid continuing weak consumer spending.
In these circumstances, as part of the Companys objective of strengthening the corporate structure and improving product competitiveness to increase speed and flexibility in response to changing customer and social needs, Honda recognizes that further enhancing the following specific areas is essential to its success:
| R&D |
| Production Efficiency |
| Sales Efficiency |
| Product Quality |
| The Environment |
| Safety Technologies |
R&D
Along with efforts to develop more effective safety and environmental technologies, Honda will create and swiftly introduce new value-added products that meet specific needs in various regional markets.
Honda will also continue efforts in the research of future technologies, including the advancement of a bi-pedal humanoid robot.
Production Efficiency
Honda will establish efficient and flexible production systems and expand production capacity with aims to increase the capability of supplying high quality products that meet market needs. In addition to the ongoing expansion of these systems, the Company also intends to expand on a global scale the supply network of its competitive products and component parts.
25
Sales Efficiency
Honda will expand its product lines and upgrade its sales structure. Through the innovative use of IT, Honda will also promote its efforts in customer communication.
Product Quality
Responding to increasing consumer demand, Honda will upgrade its quality control through enhanced coordination among the development purchasing, production, sales and service departments.
The Environment
Honda will step up the introduction of clean, fuel-efficient engine technologies and recyclability throughout its product lines. Honda will also advance alternative fuel technologies, including fuel cells. In addition, Honda will continue its efforts to minimize the environmental impact, as measured by the *Life Cycle Assessment, in all of its business fields including logistics and sales. In its production activities, Honda promotes environmental preservation issues under its Green Factory concept.
*Life Cycle Assessment
A comprehensive system for quantifying the environmental impacts of Hondas products throughout their life cycles, from the material procurement and energy consumption to waste disposal.
Safety Technologies
Honda R&D will develop technologies for the self protection and reduces aggresivity, in addition to the technologies for the prediction and the prevention of accidentsas well as those for passenger and pedestrian injury reduction. Honda intends to enhance its contribution to traffic safety in motorized societies, including Asian countries. Honda also intends to remain active in a variety of traffic safety programs, including advanced driving and motorcycling training schemes provided by local dealerships.
26
Management Organization
With the goal of improved corporate governance, Honda has long undertaken proactive measures such as appointing an independent board member and an independent auditor.
Hondas organization also reflects the aforementioned corporate philosophies and consists of six regional operations worldwide that have a long-term perspective and the goal to cooperate with the local communities in which they do business in order to create mutual benefits. Hondas goal is to become a company that society wants to exist.
In addition, its corporate executive officer system aims at improving the self-reliance of respective regions and the speed at which decision-making is accomplished.
Hondas four business operationsmotorcycles, automobiles, power products, and spare partsformulate the medium and long-term plans for business development in individual product categories, and each operation aims to maximize its business performance on a global basis.
Hondas production operations support production related departments so that they can implement the most efficient allocation of production on a global scale. These efforts are aimed at increasing company-wide efficiencies.
Hondas administrative operations coordinate the entire organization to optimize the allocation of business resources. These efforts are aimed at increasing company-wide efficiency.
For investors and shareholders, Hondas basic policy emphasizes the disclosure of financial results on a quarterly basis, as well as the timely and accurate disclosure of its management strategies through mass media. Honda will remain committed to such disclosure in the future.
27
(1) Management Organization
The Company supervises and audits its business activities through its Board of Directors and Board of Corporate Auditors.
The Board of Directors consists of 36 directors, including one outside director, and makes decisions on important business activities and other legal matters. The Board of Directors also supervises the execution of the Companys businesses. In April 2003, in order to ensure proactive decision-making, the Board of Directors set up an Assets and Loan Management Committee, which is responsible for making decisions related to the disposal of the Companys important assets.
The Board of Corporate Auditors is composed of four corporate auditors, including two outside corporate auditors. In accordance with the rules of auditing policy and the apportionment of responsibilities as determined by the Board of Corporate Auditors, each corporate auditor audits the directors execution of their duties. This is accomplished through various means, including attendance at meetings of the Board of Directors and inspections regarding the status of Company assets and liabilities. Two outside corporate auditors were elected at the Companys Ordinary General Meeting of Shareholders held on June 24, 2003 and they comprise half the number of corporate auditors so as to strengthen their independence. In connection with this, a Corporate Auditors Office was newly established in April 2003to provide direct support to the Board of Corporate Auditors.
In order to ensure a proper auditing of the Companys accounts, the Board of Corporate Auditors and the Board of Directors receive auditing reports based on the Commercial Codes Audit Special Exceptions Law, the Securities and Exchange Law, and the Securities Exchange Acts of the U.S.A. In addition, they supervise the election of independent auditors, their remuneration and non-audit services.
28
(2) Execution of management
The Company has established the Management Council, which is composed of eight representative directors and four managing directors. Along with discussing in advance items to be resolved at meetings of the Board of Directors, this Management Council discusses important management issues as directed by the Board of Directors.
Based on the fundamental corporate philosophies, Honda will promote the Companys long-term businesses in each region to ensure that Honda will be a company each region wants to exist. The Companys management organization contains six regional operations, including a newly established operation in China in April 2003. Regional executive officers are assigned to be in charge of the business operations in each region, with the aim of heightening the autonomy of the region and ensuring speedy decision-making. In addition, regional executive councils located at each regional operation discuss important management issues in the region within the bounds of the authority conferred upon them by the Management Council.
The Companys four business operationsmotorcycles, automobiles, power products, and spare partsformulate the medium and long-term plans for their business development, and each operation aims to maximize its business performance on a global basis.
The Companys production operations and purchasing operations support production related departments so that they can implement the most efficient allocation of production and procurement on a global scale. These efforts are aimed at increasing company-wide efficiencies.
At the Companys major production facilities in Japan and overseas, operational executive officers are responsible for rapid decision-making. In addition, the Business Management Operations and the Business Support Operations make adjustments on a company-wide basis with the aim of ensuring the optimal allocation of resources.
Research and development are conducted principally at the independent subsidiaries of the Company. Honda R&D Co., Ltd. is responsible for product research, while Honda Engineering Co., Ltd. is responsible for research in the area of production technology. The Company carries out unrestricted and generous research and development with the aim of creating, through application of the latest technologies, products that are distinct and internationally competitive.
29
(3) Internal Control
The Business Audit Office (known until April 2003 as the Audit Office) is an independent supervisory department under the direct control of the president. This office audits the performance of each department.
In addition to the newly established Honda Conduct Guideline to be shared within the entire Honda group, the Company also intends to set up a systematic framework for compliance and risk management in which each division of Honda group works to ensure compliance and prevent management risks, and to verify the status on a regular basis under the supervision by the director in charge. In addition to the appointment of a director in charge of compliance and risk management, the Company intends to improve its organization by setting up a Business Ethics Committee to deliberate matters related to corporate ethics and compliance, as well as a Business Ethics Improvement Proposal Line, which will receive suggestions related to corporate ethics issues
30
October 28, 2003
Honda Motor Co., Ltd.
CONSOLIDATED FINANCIAL SUMMARY
FOR THE FISCAL FIRST HALF ENDED SEPTEMBER 30, 2003
(Billions of Yen) |
||||||||||||||||||
Results for the fiscal first half ended Sept. 30, 2002 |
Results for the fiscal first half ended Sept. 30, 2003 [change/ %] |
Forecasts for the fiscal year ending Mar. 31, 2004 [change/ %] |
Results for the Mar. 31, 2003 |
|||||||||||||||
Net sales and other operating revenue |
3,853.6 | 4,025.4 | [171.8/4.5 | %] | 8,220.0 | [248.5/3.1 | %] | 7,971.4 | ||||||||||
Japan |
877.0 | 750.0 | [-127.0/-14.5 | %] | 1,710.0 | [-38.7/-2.2 | %] | 1,748.7 | ||||||||||
Overseas |
2,976.5 | 3,275.3 | [298.8/10.0 | %] | 6,510.0 | [287.2/4.6 | %] | 6,222.7 | ||||||||||
Operating income |
323.8 | 301.8 | [-21.9/-6.8 | %] | 623.0 | [-66.4/-9.6 | %] | 689.4 | ||||||||||
<as a percentage of net sales> |
< 8.4 | % > | < 7.5 | % > | < 7.6 | % > | < 8.6 | % > | ||||||||||
Income before income taxes |
273.7 | 331.8 | [58.1/21.3 | %] | 648.0 | [38.2/6.3 | %] | 609.7 | ||||||||||
<as a percentage of net sales> |
< 7.1 | % > | < 8.2 | % > | < 7.9 | % > | < 7.6 | % > | ||||||||||
Net income |
194.7 | 239.1 | [44.3/22.8 | %] | 470.0 | [43.3/10.2 | %] | 426.6 | ||||||||||
<as a percentage of net sales> |
< 5.1 | % > | < 5.9 | % > | < 5.7 | % > | < 5.4 | % > | ||||||||||
Factors of change in Operating income |
(INCREASE FACTORS) | (INCREASE FACTORS) | ||||||||||||||||
-Cost reduction | 19.0 | -Change in revenue | ||||||||||||||||
model mix, etc. | 27.5 | |||||||||||||||||
-Cost reduction | 55.0 | |||||||||||||||||
(DECREASE FACTORS) | ||||||||||||||||||
-Change in revenue | (DECREASE FACTORS) | |||||||||||||||||
model mix, etc. | -1.7 | -Currency effects | -76.5 | |||||||||||||||
-Currency effects | -11.0 | Change in average rates | (-60.0 | ) | ||||||||||||||
Change in average rates | (-7.0 | ) | Translation effects | (-16.5 | ) | |||||||||||||
Translation effects | (-4.0 | ) | -Change in SG&A | -47.3 | ||||||||||||||
-Change in SG&A | -22.4 | -Change in R&D | -25.1 | |||||||||||||||
-Change in R&D | -5.8 | |||||||||||||||||
Average rates for the period USD= |
JPY 123 | JPY 118 | JPY 114 | JPY 122 | ||||||||||||||
Average rates for the period EUR= |
JPY 117 | JPY 133 | JPY 130 | JPY 122 | ||||||||||||||
Honda's transaction rate USD= |
JPY 125 | JPY 119 | JPY 115 (2nd half: 110) | JPY 123 | ||||||||||||||
Honda's transaction rate EUR= |
JPY 114 | JPY 128 | JPY 127 (2nd half: 125) | JPY 115 | ||||||||||||||
Capital expenditures |
133.2 | 128.0 | 320.0 | 316.9 | ||||||||||||||
Depreciation |
99.0 | 100.1 | 200.0 | 213.8 | ||||||||||||||
Research and development |
213.0 | 218.8 | 462.0 | 436.8 | ||||||||||||||
Interest bearing debt |
2,033.8 | 2,492.1 | 2,322.4 | |||||||||||||||
Remarks |
.Net sales and net income set record high for the first half in the three consecutive years. |
|
· Net sales, income before income taxes and net income to set record high. |
|
||||||||||||||
·Income before income taxes set record high for the first half. |
|
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Unit sales of motorcycles |
3,867 | 4,219 | [352/9.1 | %] | 9,080 | [1,000/12.4 | %] | 8,080 | ||||||||||
(M/C included above) |
(3,704 | ) | (4,092 | ) | [388/10.5 | %] | (8,766 | ) | [992/12.8 | %] | (7,774 | ) | ||||||
Japan |
215 | 214 | [-1/-0.5 | %] | 425 | [-7/-1.6 | %] | 432 | ||||||||||
(M/C included above) |
(215 | ) | (214 | ) | [-1/-0.5 | %] | (425 | ) | [-7/-1.6 | %] | (432 | ) | ||||||
Overseas |
3,652 | 4,005 | [353/9.7 | %] | 8,655 | [1,007/13.2 | %] | 7,648 | ||||||||||
(M/C included above) |
(3,489 | ) | (3,878 | ) | [389/11.1 | %] | (8,341 | ) | [999/13.6 | %] | (7,342 | ) | ||||||
North America |
291 | 239 | [-52/-17.9 | %] | 670 | [60/9.8 | %] | 610 | ||||||||||
(M/C included above) |
(138 | ) | (122 | ) | [-16/-11.6 | %] | (367 | ) | [43/13.3 | %] | (324 | ) | ||||||
Europe |
155 | 158 | [3/1.9 | %] | 280 | [-25/-8.2 | %] | 305 | ||||||||||
(M/C included above) |
(150 | ) | (153 | ) | [3/2.0 | %] | (274 | ) | [-22/-7.4 | %] | (296 | ) | ||||||
Asia |
2,817 | 3,189 | [372/13.2 | %] | 6,880 | [932/15.7 | %] | 5,948 | ||||||||||
(M/C included above) |
(2,817 | ) | (3,189 | ) | [372/13.2 | %] | (6,880 | ) | [932/15.7 | %] | (5,948 | ) | ||||||
Others |
389 | 419 | [30/7.7 | %] | 825 | [40/5.1 | %] | 785 | ||||||||||
(M/C included above) |
(384 | ) | (414 | ) | [30/7.8 | %] | (820 | ) | [46/5.9 | %] | (774 | ) | ||||||
Unit sales of automobiles |
1,406 | 1,443 | [37/2.6 | %] | 3,035 | [147/5.1 | %] | 2,888 | ||||||||||
Japan |
426 | 329 | [-97/-22.8 | %] | 765 | [-84/-9.9 | %] | 849 | ||||||||||
Overseas |
980 | 1,114 | [134/13.7 | %] | 2,270 | [231/11.3 | %] | 2,039 | ||||||||||
North America |
732 | 782 | [50/6.8 | %] | 1,565 | [43/2.8 | %] | 1,522 | ||||||||||
Europe |
104 | 113 | [9/8.7 | %] | 220 | [13/6.3 | %] | 207 | ||||||||||
Asia |
95 | 163 | [68/71.6 | %] | 355 | [150/73.2 | %] | 205 | ||||||||||
Others |
49 | 56 | [7/14.3 | %] | 130 | [25/23.8 | %] | 105 | ||||||||||
Unit sales of power products |
2,006 | 2,195 | [189/9.4 | %] | 5,080 | [496/10.8 | %] | 4,584 | ||||||||||
Japan |
252 | 245 | [-7/-2.8 | %] | 475 | [3/0.6 | %] | 472 | ||||||||||
Overseas |
1,754 | 1,950 | [196/11.2 | %] | 4,605 | [493/12.0 | %] | 4,112 | ||||||||||
North America |
900 | 1,053 | [153/17.0 | %] | 2,245 | [373/19.9 | %] | 1,872 | ||||||||||
Europe |
424 | 421 | [-3/-0.7 | %] | 1,260 | [-30/-2.3 | %] | 1,290 | ||||||||||
Asia |
312 | 317 | [5/1.6 | %] | 865 | [208/31.7 | %] | 657 | ||||||||||
Others |
118 | 159 | [41/34.7 | %] | 235 | [-58/-19.8 | %] | 293 |
This announcement contains forward-looking statements within the meaning of Section 21E of the U.S. Securities Exchange Act of 1934. Hondas actual results could materially differ from those contained in these forward-looking statements as a result of numerous factors outside of Hondas control, including general economic conditions in Hondas principal markets and foreign exchange rates between the Japanese yen and other major currencies, as well as other factors detailed from time to time in Hondas reports filed with the U.S. Securities and Exchange Commission.
October 28, 2003
Consolidated Financial Summary ( Supplemental version ) |
Honda Motor Co., Ltd.
(Thousands of units, Millions of Yen) |
Second Quarter Results |
First Half Results |
Forecasts |
||||||||||||||||||||||
3M ended Sept. 2003 |
3M ended Sept. 2002 |
% change |
6M ended Sept. 2003 |
6M ended Sept. 2002 |
% change |
Y ending Mar.2004 |
% change |
|||||||||||||||||
Unit sales of motorcycles |
||||||||||||||||||||||||
Japan |
120 | 121 | -0.8 | % | 214 | 215 | -0.5 | % | 425 | -1.6 | % | |||||||||||||
(M/C included above) |
(120 | ) | (121 | ) | -0.8 | % | (214 | ) | (215 | ) | -0.5 | % | (425 | ) | -1.6 | % | ||||||||
North America |
140 | 172 | -18.6 | % | 239 | 291 | -17.9 | % | 670 | 9.8 | % | |||||||||||||
(M/C included above) |
(57 | ) | (79 | ) | -27.8 | % | (122 | ) | (138 | ) | -11.6 | % | (367 | ) | 13.3 | % | ||||||||
Europe |
57 | 57 | | 158 | 155 | 1.9 | % | 280 | -8.2 | % | ||||||||||||||
(M/C included above) |
(54 | ) | (54 | ) | | (153 | ) | (150 | ) | 2.0 | % | (274 | ) | -7.4 | % | |||||||||
Asia |
1,691 | 1,485 | 13.9 | % | 3,189 | 2,817 | 13.2 | % | 6,880 | 15.7 | % | |||||||||||||
(M/C included above) |
(1,691 | ) | (1,485 | ) | 13.9 | % | (3,189 | ) | (2,817 | ) | 13.2 | % | (6,880 | ) | 15.7 | % | ||||||||
Others |
210 | 205 | 2.4 | % | 419 | 389 | 7.7 | % | 825 | 5.1 | % | |||||||||||||
(M/C included above) |
(207 | ) | (205 | ) | 1.0 | % | (414 | ) | (384 | ) | 7.8 | % | (820 | ) | 5.9 | % | ||||||||
Total |
2,218 | 2,040 | 8.7 | % | 4,219 | 3,867 | 9.1 | % | 9,080 | 12.4 | % | |||||||||||||
(M/C included above) |
(2,129 | ) | (1,944 | ) | 9.5 | % | (4,092 | ) | (3,704 | ) | 10.5 | % | (8,766 | ) | 12.8 | % | ||||||||
Unit sales of automobiles |
||||||||||||||||||||||||
Japan |
176 | 213 | -17.4 | % | 329 | 426 | -22.8 | % | 765 | -9.9 | % | |||||||||||||
North America |
385 | 365 | 5.5 | % | 782 | 732 | 6.8 | % | 1,565 | 2.8 | % | |||||||||||||
Europe |
57 | 58 | -1.7 | % | 113 | 104 | 8.7 | % | 220 | 6.3 | % | |||||||||||||
Asia |
84 | 49 | 71.4 | % | 163 | 95 | 71.6 | % | 355 | 73.2 | % | |||||||||||||
Others |
33 | 27 | 22.2 | % |