Honda Motor Files 20-F Annual Report
Ticker: HNDAF · Form: 20-F · Filed: Jun 20, 2024 · CIK: 715153
| Field | Detail |
|---|---|
| Company | Honda Motor CO LTD (HNDAF) |
| Form Type | 20-F |
| Filed Date | Jun 20, 2024 |
| Risk Level | low |
| Pages | 15 |
| Reading Time | 17 min |
| Sentiment | neutral |
Sentiment: neutral
Topics: annual-report, financials, risk-management, warranty
TL;DR
Honda's 20-F is in: they're covering warranty costs and hedging currency risk.
AI Summary
Honda Motor Co., Ltd. filed its annual report on Form 20-F on June 20, 2024, for the fiscal year ending March 31, 2024. The filing details the company's financial position, including provisions for product warranties and derivative financial liabilities used to hedge foreign currency risk. Honda recognizes estimated warranty costs at the time of sale and also accounts for specific warranty programs like product recalls.
Why It Matters
This filing provides investors with a comprehensive overview of Honda's financial health and risk management strategies, including how it accounts for potential warranty expenses and currency fluctuations.
Risk Assessment
Risk Level: low — This is a standard annual report filing for a large, established company, providing routine financial disclosures.
Key Numbers
- N/A — Revenue (Specific revenue figures are not detailed in the provided text snippet.)
- N/A — Net Income (Specific net income figures are not detailed in the provided text snippet.)
- N/A — Total Assets (Specific asset figures are not detailed in the provided text snippet.)
Key Players & Entities
- HONDA MOTOR CO LTD (company) — Filer
- 0001193125-24-163995 (filing_id) — Accession Number
- 20240620 (date) — Filing Date
- 20240331 (date) — Fiscal Year End
- 1-1, MINAMI-AOYAMA 2-CHOME, MINATO-KU, TOKYO, JAPAN (address) — Business Address
FAQ
What is the primary purpose of the derivative financial liabilities mentioned?
Derivative financial liabilities are held by Honda and its finance subsidiaries to hedge foreign currency risk for principal and interest payments on long-term financing liabilities.
How does Honda recognize provisions for product warranties?
Honda recognizes provisions for product warranties to cover future expenses, including general warranties on products sold and specific warranty programs like product recalls, recognizing estimated costs at the time products are sold.
When was Honda Motor Co., Ltd.'s 20-F filing submitted?
The 20-F filing was submitted on June 20, 2024.
What is the company's fiscal year end?
Honda's fiscal year ends on March 31.
How are expected credit losses (ECL) measured for retail receivables?
Expected credit losses are measured collectively by Honda's finance subsidiaries, and the balances of those receivables are not directly allocated to risk ratings.
Filing Stats: 4,350 words · 17 min read · ~15 pages · Grade level 14 · Accepted 2024-06-20 07:54:18
Filing Documents
- d767050d20f.htm (20-F) — 7438KB
- d767050dex24.htm (EX-2.4) — 108KB
- d767050dex112.htm (EX-11.2) — 20KB
- d767050dex121.htm (EX-12.1) — 11KB
- d767050dex122.htm (EX-12.2) — 11KB
- d767050dex131.htm (EX-13.1) — 3KB
- d767050dex132.htm (EX-13.2) — 3KB
- d767050dex151.htm (EX-15.1) — 2KB
- d767050dex971.htm (EX-97.1) — 3KB
- g767050g03v17.jpg (GRAPHIC) — 33KB
- g767050g08k09.jpg (GRAPHIC) — 65KB
- g767050g13t20.jpg (GRAPHIC) — 29KB
- g767050g20a03.jpg (GRAPHIC) — 68KB
- g767050g34s03.jpg (GRAPHIC) — 48KB
- g767050g43a11.jpg (GRAPHIC) — 57KB
- g767050g43b22.jpg (GRAPHIC) — 61KB
- g767050g48a01.jpg (GRAPHIC) — 37KB
- g767050g48b01.jpg (GRAPHIC) — 35KB
- g767050g52a11.jpg (GRAPHIC) — 86KB
- g767050g93e82.jpg (GRAPHIC) — 26KB
- 0001193125-24-163995.txt ( ) — 30145KB
- hmc-20240331.xsd (EX-101.SCH) — 140KB
- hmc-20240331_cal.xml (EX-101.CAL) — 132KB
- hmc-20240331_def.xml (EX-101.DEF) — 640KB
- hmc-20240331_lab.xml (EX-101.LAB) — 940KB
- hmc-20240331_pre.xml (EX-101.PRE) — 904KB
- d767050d20f_htm.xml (XML) — 7859KB
Identity of Directors, Senior Management and Advisers
Item 1. Identity of Directors, Senior Management and Advisers 1
Offer Statistics and Expected Timetable
Item 2. Offer Statistics and Expected Timetable 1
Key Information
Item 3. Key Information 1 A. [Reserved] 1 B. Capitalization and Indebtedness 1 C. Reason for the Offer and Use of Proceeds 1 D. Risk Factors 1
Information on the Company
Item 4. Information on the Company 8 A. History and Development of the Company 8 B. Business Overview 8 C. Organizational Structure 52 D. Property, Plants and Equipment 53
Unresolved Staff Comments
Item 4A. Unresolved Staff Comments 55
Operating and Financial Review and Prospects
Item 5. Operating and Financial Review and Prospects 55 A. Operating Results 55 B. Liquidity and Capital Resources 75 C. Research and Development 78 D. Trend Information 83 E. Critical Accounting Estimates 83
Directors, Senior Management and Employees
Item 6. Directors, Senior Management and Employees 84 A. Directors and Senior Management 84 B. Compensation 105 C. Board Practices 112 D. Employees 112 E. Share Ownership 113 F. Disclosure of a Registrant's Action to Recover Erroneously Awarded Compensation 115
Major Shareholders and Related Party Transactions
Item 7. Major Shareholders and Related Party Transactions 115 A. Major Shareholders 115 B. Related Party Transactions 115 C. Interests of Experts and Counsel 116
Financial Information
Item 8. Financial Information 116 A. Consolidated Statements and Other Financial Information 116 B. Significant Changes 117
The Offer and Listing
Item 9. The Offer and Listing 117 A. Offer and Listing Details 117 B. Plan of Distribution 117 C. Markets 117 D. Selling Shareholders 117 E. Dilution 117 F. Expenses of the Issue 118
Additional Information
Item 10. Additional Information 118 A. Share Capital 118 B. Memorandum and Articles of Association 118 C. Material Contracts 119 D. Exchange Controls 119 E. Taxation 119 F. Dividends and Paying Agents 123 G. Statement by Experts 123 Table of Contents H. Documents on Display 124 I. Subsidiary Information 124 J. Annual Report to Security Holders 124
Quantitative and Qualitative Disclosure about Market Risk
Item 11. Quantitative and Qualitative Disclosure about Market Risk 124
Description of Securities Other than Equity Securities
Item 12. Description of Securities Other than Equity Securities 124 A. Debt Securities 124 B. Warrants and Rights 124 C. Other Securities 124 D. American Depositary Shares 124 PART II
Defaults, Dividend Arrearages and Delinquencies
Item 13. Defaults, Dividend Arrearages and Delinquencies 127
Material Modifications to the Rights of Security Holders and Use of Proceeds
Item 14. Material Modifications to the Rights of Security Holders and Use of Proceeds 127
Controls and Procedures
Item 15. Controls and Procedures 127
Audit Committee Financial Expert
Item 16A. Audit Committee Financial Expert 128
Code of Ethics
Item 16B. Code of Ethics 128
Principal Accountant Fees and Services
Item 16C. Principal Accountant Fees and Services 128
Exemptions from the Listing Standards for Audit Committees
Item 16D. Exemptions from the Listing Standards for Audit Committees 129
Purchases of Equity Securities by the Issuer and Affiliated Purchasers
Item 16E. Purchases of Equity Securities by the Issuer and Affiliated Purchasers 129
Change in Registrant's Certifying Accountant
Item 16F. Change in Registrant's Certifying Accountant 130
Corporate Governance
Item 16G. Corporate Governance 130
Mine Safety Disclosure
Item 16H. Mine Safety Disclosure 134
Disclosure Regarding Foreign Jurisdiction that Prevent Inspections
Item 16I. Disclosure Regarding Foreign Jurisdiction that Prevent Inspections 134
Insider Trading Policies
Item 16J. Insider Trading Policies 134
Cybersecurity
Item 16K. Cybersecurity 134 PART III
Financial Statements
Item 17. Financial Statements 136
Financial Statements
Item 18. Financial Statements 136
Exhibits
Item 19. Exhibits 137 Table of Contents PART I Unless the context otherwise requires, the terms "we", "us", "our", "Registrant", "Company" and "Honda" as used in this Annual Report each refer to Honda Motor Co., Ltd. and its consolidated subsidiaries. Item1. Identity of Directors, Senior Management and Advisers Not applicable. Item2. Offer Statistics and Expected Timetable Not applicable. Item3. Key Information A. [Reserved] B. Capitalization and Indebtedness Not applicable. C. Reason for the Offer and Use of Proceeds Not applicable. D. Risk Factors You should carefully consider the risks described below before making an investment decision. If any of the risks described below actually occurs, Honda's business, financial condition or operating results could be adversely affected. In that event, the trading prices of Honda's common shares and American Depositary Shares could decline, and you may lose all or part of your investment. Additional risks not currently known to Honda or that Honda now deems immaterial may also harm Honda and affect your investment. Geopolitical Risk Honda conducts business operations in countries worldwide and is exposed to a variety of risks including changes in local laws and regulations, agreements, institutions, and business practices, such as tariffs, import and export regulations, and taxes, wars, terrorism, political uncertainty, worsening security situation, change in political regime and labor strikes in those countries or neighboring regions. If such unforeseeable events occur, and operations are delayed or suspended, including supply chain disruptions due to heightened political, military, or social tensions, Honda's business and operating results could be adversely affected. Particularly among them, Honda recognizes three major geopolitical risks: 1) economic security, 2) conflicts between nations or regional conflicts, and 3) laws and regulations concerning human rights. Strategies for mi