HONDA FINANCE CO., LTD. (E03730) Stock Price

Honda Finance is a financial services company within the Honda Group, with Honda Motor Co., Ltd. as its parent company. The company primarily provides comprehensive financial services to customers seeking to purchase or lease Honda products, as well as to Honda dealers. It plays a crucial role in supporting Honda product sales from a financial perspective for automobiles, motorcycles, and other Honda offerings.

The company's primary customers are individual consumers purchasing Honda products and Honda dealers. Its revenue structure is built on interest income from consumer credit operations and vehicle leasing, as well as interest income from equipment leasing and inventory financing for dealers. Additionally, commission income from property and casualty insurance agency operations contributes to overall revenues.

The business is divided into two main segments: "Consumer Financial Services" and "Commercial Financial Services." Consumer operations include individual credit purchases (installment credit) and vehicle leasing, while commercial operations include vehicle and equipment leasing for dealers, inventory financing, acquisition of Honda Group receivables, and insurance agency services. Through these services, Honda Finance operates as a comprehensive financial services company that supports Honda product sales promotion and enhances customer satisfaction.

Honda Finance aims to become an indispensable partner in realizing customers' richer mobility lifestyles by evolving and expanding financial services in response to the value evolution of Honda's mobility offerings in the era of electrification and intelligence. This is the company's 2035 vision as the automotive industry undergoes major transformation. Despite challenging business conditions including Japan's aging population, rising prices, and increased funding costs, Honda Finance views the acceleration of electrification and intelligence in the automotive industry as a growth opportunity and is developing a long-term strategy accordingly.

As its medium-term policy, Honda Finance has set the goal of "challenging new functions of financial operations to support Honda's transformation in Japan." The company is particularly focused on advancing and expanding financial services to accelerate Life Cycle Business (LCB). Beyond traditional auto loans and leasing, the company positions the development of financial products tailored to new mobility services in the electrification era and the construction of service delivery systems aligned with changing customer lifestyles as key differentiation strategies.

To achieve both operational efficiency and improved service quality, Honda Finance is driving transformation toward high-quality, high-efficiency financial operations. Digital transformation is treated as an urgent priority. By digitizing conventional manual processes, the company aims to improve processing speed and reduce costs, thereby strengthening its business foundation to balance sales contribution with profitability. Through these efforts, Honda Finance seeks to build a stable revenue base even amid fluctuating interest rates and intensifying competition.

Organizationally, the company has prioritized developing an agile and flexible organization and workforce capable of responding swiftly to environmental changes. To respond quickly to technological innovation such as electrification and intelligence, as well as diversifying customer needs, Honda Finance is strengthening employee skills and organizational agility to establish itself as a financial services company that contributes to enhancing the competitiveness of the Honda Group as a whole.