HONDA MOTOR CO LTD

HONDA MOTOR CO LTD primarily meets its working capital requirements through cash generated from operations, bank loans, and corporate bonds. For the fiscal year ended March 31, 2022, the company established its Sustainable Finance Framework to raise funds for environmental and safety initiatives, issuing Green Bonds totaling US$2.75 billion. The proceeds from these Green Bonds are exclusively allocated to environmental initiatives. As of March 31, 2026, the outstanding balance of Green Bond liabilities was US$1.75 billion. The company's working capital is considered sufficient for its current needs. As of March 31, 2026, the year-end balance of liabilities for Honda and its subsidiaries' non-Financial services businesses funding was 1,238.8 billion. Additionally, Honda's finance subsidiaries fund financial programs for customers and dealers using medium-term notes, bank loans, securitization of finance receivables and equipment on operating leases, commercial paper, and corporate bonds. The year-end balance of liabilities for these finance subsidiaries' funding for the Financial services business was 12,252.7 billion as of March 31, 2026. Honda experiences no material seasonal variations in its borrowing requirements and will consider raising funds as needed based on future working capital requirements and cash on hand. Consolidated cash and cash equivalents increased by 589.6 billion from March 31, 2025, to 5,118.4 billion as of March 31, 2026. Net cash provided by operating activities amounted to 1,135.2 billion in cash inflows, an increase of 843.1 billion compared to the previous fiscal year, primarily due to decreased payments for parts and raw materials and increased collections of receivables from financial services.