{"url_path":"/sec/hmc/10-k/2026/item-8","section_key":"item-8","section_title":"Item 8 Financial Information","topic":"sec","document":{"doc_type":"20-F","doc_date":"2026-06-18","source_url":"https://www.sec.gov/Archives/edgar/data/715153/0001193125-26-274991-index.html","accession_number":"0001193125-26-274991","cik":"0000715153","ticker":"HMC","issuer_name":"HONDA MOTOR CO LTD","edgar_url":"https://www.sec.gov/Archives/edgar/data/715153/0001193125-26-274991-index.html","primary_entity_key":"0000715153","primary_entity_name":"HONDA MOTOR CO LTD"},"word_count":655,"has_tables":true,"body_markdown":"Item 8. Financial Information\n\nA. Consolidated Statements and Other Financial Information\n\n1 – 3. Consolidated Financial Statements\n\nHonda’s audited consolidated financial statements are included under “Item 18—Financial Statements”.\n\n4. Not applicable.\n\n5. Not applicable.\n\n6. Export Sales\n\nSee “Item 4—Information on the Company—Marketing and Distribution”.\n\n7. Legal Proceedings\n\nVarious legal proceedings are pending against us. We believe that such proceedings constitute ordinary routine litigation incidental to our business.\n\nHonda is subject to potential liability under various lawsuits and claims. Honda recognizes a provision for loss contingencies when it is probable that an outflow of resources embodying economic benefits will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation. Honda reviews these pending lawsuits and claims periodically and adjusts the amounts recognized for these contingent liabilities, if necessary, by considering the nature of lawsuits and claims, the progress of the case and the opinions of legal counsel.\n\n \n\n129\n\n##### Table of Contents\n\nWith respect to product liability, personal injury claims or lawsuits, Honda believes that any judgment that may be recovered by any plaintiff for general and special damages and court costs will be adequately covered by Honda’s insurance and provision. Punitive damages are claimed in certain of these lawsuits.\n\nAfter consultation with legal counsel, and taking into account all known factors pertaining to existing lawsuits and claims, Honda believes that the ultimate outcome of such lawsuits and pending claims should not result in liability to Honda that would be likely to have an adverse material effect on its consolidated financial position or results of operations.\n\n8. Profit Redistribution Policy\n\nThe Company strives to carry out its operations worldwide from a global perspective and to increase its corporate value. With respect to the redistribution of profits to its shareholders, which we consider to be one of the most important management issues, the Company’s basic policy is to determine such distributions after taking into account, among others, its retained earnings for future growth and consolidated earnings performance based on a long-term perspective. With respect to dividends, the Company will strive to pay stable and continuous dividends aiming at DOE (dividend on adjusted equity attributable to owners of the parent*) of approximately 3.0%. We will strive to further improve our capital efficiency and enhance the level of dividends.\n\nThe Company may also acquire its own shares at a timing that it deems optimal, with the goal of implementing a flexible capital strategy.\n\nRetained earnings will be allocated toward financing R&D activities that are essential for the future growth of the Company as well as for capital expenditures and investment programs that will expand its operations for the purpose of improving business results and maintaining the Company’s sound financial condition.\n\nThe Company’s basic policy for dividends is to make semiannual distributions (an interim dividend and a year-end dividend). The Company may determine dividends from surplus by a resolution of the Board of Directors.\n\nThe Company determined total dividends for the year ended March 31, 2026 were ¥70 per share. Semiannual dividends per share for the year ended March 31, 2026 were as follows: the interim ¥35, the year-end ¥35 per share.\n\nDetails of Distribution of Surplus (Record dates of the fiscal year ended March 31, 2026)\n\n \n\n \n  \nResolution of\nthe Board of\nDirectors\n \n  \nResolution of\nthe Board of\nDirectors\n \n\n \n  \nNovember 7, 2025\n \n  \nMay 14, 2026\n \n\nDividend per Share of Common Stock (yen)\n\n  \n \n35.00\n \n  \n \n35.00\n \n\nTotal Amount of Dividends (millions of yen)\n\n  \n \n136,430\n \n  \n \n136,430\n \n\n \n\n*\n\nAdjusted “equity attributable to owners of the parent”, which is the basis for DOE (dividend on adjusted equity attributable to owners of the parent), is based on adjusted amounts that exclude “Other components of equity”, which fluctuate significantly due to the effects of foreign exchange and market conditions.\n\nB. Significant Changes\n\nExcept otherwise disclosed in this Annual Report on Form 20-F, no significant change has occurred since the date of the annual financial statements.\n\n \n\n130\n\n##### Table of Contents"}