Honda Motor Co., Ltd. (NYSE:HMC) Q1 2024 Earnings Conference Call August 9, 2023 4:00 AM ET

Company Participants

Eiji Fujimura - Operating Executive and Head of Accounting, Finance, Supervisory Unit

Masao Kawaguchi - Operating Executive, Head of Accounting and Finance Supervisor Unit

Conference Call Participants

Unidentified Company Representative

Thank you very much for coming despite your busy schedule today. We would like to now start Honda Motors Company Limited's briefings on FY 2024 Q1 Financial Results.

We have interpretation service, for the non-Japanese investors and analysts. Thank you for your understanding. First of all, let me introduce today's speakers. We have Eiji Fujimura, Executive Officer and CFO.

Eiji Fujimura

I'm Fujimura.

Unidentified Company Representative

We have Masao Kawaguchi, Operating Executive, Head of Accounting and Finance Supervisor Unit.

Masao Kawaguchi

I'm Kawaguchi. Thank you very much for today.

Unidentified Company Representative

Finally I am [Diva] from IR department, and I will be facilitating today's meeting. So without further ado, I would like to have Fujimura to provide a summary on the 2024, Q1 financial results followed by the details of the earnings by Kawaguchi. Over to you.

Eiji Fujimura

Thank you very much for taking the time out of your busy schedule today. I would like to review the results from the first quarter of fiscal 2024. First, I would like to touch on the highlights of the results.

In Q1 FY24, with the improved fixed cost structure that we have been optimizing, we maximized the effect of increased sales unit, mainly in North America, and achieved the significant growth in automobile operating profit year-on-year. With respect to the total profit, operating profit grew ¥172.2 billion year-on-year to ¥394.4 billion a quarterly record with operating margin at 8.5% the fiscal year 2024 forecast is kept unchanged. Today, at the board, a resolution was adopted approving a stock split.

I will now turn to the automobile business results in the main markets. The overall results from the first quarter fiscal 2024 exceeded the same period previous year. In the United States, the improved supply of semiconductors and recovery in production. In addition to strong sales of models introduced last year that result substantially surpassing the Q1 of last year.

On the other hand, in China, expansion of new energy vehicle market resulting in more intense competition impacted the results, which were lower year-on-year. We maintain the previous forecast for fiscal 2024. In regard to our electrification efforts, in order to develop the next generation competitive software defined mobility products and services.