Cash Flows
Consolidated cash and cash equivalents on September 30, 2023 increased by ¥637.4 billion from March 31, 2023, to
¥4,440.5 billion. The reasons for the increases or decreases for each cash flow activity, when compared with the same period last year, are as follows:
Net cash provided by operating activities amounted to ¥379.9 billion of cash inflows. Cash inflows from operating activities
decreased by ¥961.3 billion from the same period last year, due mainly to an increase in payments for parts and raw materials as well as in receivables from financial services, which was partially offset by increased cash received from
customers.
Net cash used in investing activities amounted to ¥289.1 billion of cash outflows. Cash outflows from investing
activities decreased by ¥139.5 billion from the same period last year, due mainly to decreased payments for additions to property, plant and equipment.
Net cash provided by financing activities amounted to ¥243.0 billion of cash inflows. Cash inflows from financing activities
increased by ¥1,195.8 billion from the same period last year, due mainly to increased proceeds from financing liabilities.
Objective
indicators for judging the achievement of management goals
Please note that the forward-looking statements contained herein are
judgments made by Honda as of September 30, 2023 and may differ materially from actual results because of uncertainties that may arise in the future, including those discussed in Hondas Annual Report on Form
20-F for the fiscal year ended March 31, 2023, filed with the U.S. Securities and Exchange Commission on June 23, 2023, under Item 3. Key InformationD. Risk Factors.
In the six months ended September 30, 2023, Honda has formulated the Companys integrated report, the Honda Report 2023,
and has newly established a target for return on invested capital (ROIC)*1 of 10% or higher for the fiscal year ending March 31, 2031. Complementing the previously disclosed return on sales
(ROS) target for the fiscal year ending March 31, 2026, we intend to boost cash generation capabilities by fortifying our business structure. Our objective is to uphold an optimal equilibrium between strategic resource allocation for
transformation and shareholder returns, with the aim of achieving sustainable growth and enhanced capital efficiency.
*1 |
(Profit for the year attributable to owners of the parent + Interest expense (excluding Financial services
business)) / Invested capital*2. |
*2 |
Equity attributable to owners of the parent + Interest-bearing liabilities (excluding Financial services
business). Invested capital is calculated using the average of the beginning and end of the period. |
Research and Development
The changes in research and development activities by Honda and its subsidiaries for the six months ended September 30, 2023 are
as follows:
The Company has created the Electrification Business Development Operations based on the Business Development Operations,
which was established in April, 2022 to strengthen electrification business, to further strengthen and accelerate Hondas electrification business. This operation consolidates the business strategy and electric vehicle (EV) product development
functions of Automobile business and electrification-related strategy and development functions of Motorcycle business and Power products business, and Honda will strive to further accelerate its electrification business and create new value by
leveraging its broad and expanding range of mobility products and services.