Honda Motor Co., Ltd. (NYSE:HMC) Q4 2024 Earnings Call Transcript

Unidentified Analyst: Page 10. You talk about the historical operating income and give the reasons and selling price cost. I thought that this was a big contributor. Can you elaborate on this?

Unidentified Company Representative: Page 10, did you say? Profit before income tax the change in profit before income tax FY ’24 results. Yes, you’re talking about FY ’24, right? Okay. So there is the price cost impact — sales impact and includes the gross profit. Well, motorcycle and other regions are included here, but yes, for automotive, 317.9 is underneath it is that there is this number of 4,487 for the revenue model mix. And this is coming mainly from North America. Well, in the previous fiscal year, we had difficult to acquire semiconductors. But this year, we have seen an increase and there was a 420,000 unit increase in North America. And I think that this has contributed mainly to North America and about the price cost impact, roughly speaking, of the 524.7 motorcycle or automobile, it’s about 328 something, but the supplier and also the wage increase, these are negative included, but the raw material cost, this is big.

So I said JPY 360 billion for automotive, but still, I think the raw material costs, this includes a precious metal and steel too, but it’s about JPY 490 million or JPY 200 billion. So this is a material related. And so this is a positive. And the selling price increase is about JPY 360 million. And so minus JPY 200 million. So it’s about JPY 160 million that remains. The cost increase the supplier and the wage increase, the cost increase factors are also factored in. And we believe that the price impact was that — this is not just North America, by the way. But for automotive, that is the situation. Have I answered your question?

Operator: Thank you very much. Right now, I conclude the press conference for the financial results presentation today. And those slides and tapered will be available on our website. Thank you very much for your participation today.