Mazda Motor Corp. · TSE:7261

Mazda Motor — FY March 2022 Earnings Presentation

41 slides from Mazda Motor's earnings presentation, May 13, 2022

  1. Slide 1: Fiscal Year March 2022 Financial Results

    FISCAL YEAR MARCH 2022 FINANCIAL RESULTS May 13, 2022 Mazda Motor Corporation M A Z DA M OTO R CO R PO RAT I O N

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Financial Results Summary  Fiscal Year March 2022 Results  Fiscal Year March 2023 Forecast  Key Initiatives in FY March 2023 M A Z DA M OTO R CO R P ORAT I ON 2

  3. Slide 3: Results of Key Initiatives in Medium-Term Management Plan

    RESULTS OF KEY INITIATIVES IN MEDIUM-TERM MANAGEMENT PLAN 1. Invest in brand value improvement  Improve sales capability/brand power in US market  Commence CX-50 production in new US plant  Launch large product group model  Raise residual value through collaboration with Toyota in sales finance

  4. Slide 4: Results of Key Initiatives in Medium-Term Management Plan

    RESULTS OF KEY INITIATIVES IN MEDIUM-TERM MANAGEMENT PLAN 1. Invest in brand value improvement  Improve sales capability/brand power in US market  Commence CX-50 production in new US plant  Launch large product group model  Raise residual value through collaboration with Toyota in sales finance

  5. Slide 5: Results of Key Initiatives in Medium-Term Management Plan

    RESULTS OF KEY INITIATIVES IN MEDIUM-TERM MANAGEMENT PLAN 2. Curb expenses that depreciate brand value  Generate cash flow by improving inventory turnover  Reduce variable marketing expenses 3. Accelerate fixed cost/cost reductions to lower break-even volume  Monotsukuri area: universal manufactu

  6. Slide 6: Review of the Period to Solidify Foundation

    REVIEW OF THE PERIOD TO SOLIDIFY FOUNDATION  Despite the severe business environment, we made progress to a certain extent in strengthening the management structure and regaining earning power  Shareholder return Plans to pay ¥20 per share as the year-end dividend for FY March 2022 M A Z DA M OTO

  7. Slide 7: Fiscal Year March 2022 Results

    FISCAL YEAR MARCH 2022 RESULTS M A Z DA M OTO R CO R P ORAT I ON 7

  8. Slide 8: FY March 2022 Full Year Global Sales Volume

    FY MARCH 2022 FULL YEAR GLOBAL SALES VOLUME • Global sales volume declined year on year due to production cuts attributable to semiconductor shortages and increasing Covid-19 cases • Results exceeded those announced in February as a result of efforts in all markets/areas to deliver as many units as

  9. Slide 9: FY March 2022 Full Year Financial Metrics

    FY MARCH 2022 FULL YEAR FINANCIAL METRICS • Recorded better wholesale volume and profits than forecast in February as a result of multiple steady improvements and despite a deteriorating business environment caused by semiconductor shortages and an increase in raw material prices Change from Change

  10. Slide 10: FY March 2022 Full Year Operating Profit Change (vs FY March 2021)

    FY MARCH 2022 FULL YEAR OPERATING PROFIT CHANGE (vs FY MARCH 2021 FULL YEAR) (Billion Yen) ·Increase in wholesales volume by +1,000 units ·Effects of improved per- ·Continued fixed cost reduction Foreign unit profit, curbed Cost and efficiency improvement of Exchange marketing expenses, etc. Improve

  11. Slide 11: FY March 2022 Full Year Operating Profit Change (vs February Forecast)

    FY MARCH 2022 FULL YEAR OPERATING PROFIT CHANGE (vs FEBRUARY FORECAST) (Billion Yen) ·Fixed cost reduction and efficiency improvement ·Increase in wholesales progressed in volume by +11,000 respective areas units ·Curbed marketing expenses, etc. Fixed cost, Foreign Cost Other Volume & Exchange Impro

  12. Slide 12: FY March 2022 Full Year Operating Profit Change (vs FY March 2020)

    FY MARCH 2022 FULL YEAR OPERATING PROFIT CHANGE (vs FY MARCH 2020 DETERIORATION AND IMPROVEMENT FACTORS) • Enhanced profit structure through sales quality improvements, cost improvements, and streamlining of fixed costs • Making progress in lowering break-even volume, achieved profit growth vs FY Ma

  13. Slide 13: Fiscal Year March 2023 Forecast

    FISCAL YEAR MARCH 2023 FORECAST M A Z DA M OTO R CO R P ORAT I ON 13

  14. Slide 14: FY March 2023 Full Year Global Sales Volume

    FY MARCH 2023 FULL YEAR GLOBAL SALES VOLUME • Continue enhancing sales quality and accelerate to achieve further volume growth by introducing the new CX-50 and CX-60 • Continue monitoring production, sales and inventory to deliver on our FY March 2023 forecast (Thousand Units) FY March 2022 FY March

  15. Slide 15: FY March 2023 Full Year Financial Metrics

    FY MARCH 2023 FULL YEAR FINANCIAL METRICS • While keeping the strong profit structure, achieve the stronger growth as planned in the medium-term management plan by quickly responding to external environment changes and risks (Billion Yen) FY March 2022 FY March 2023 Change Full Year Full Year Full Y

  16. Slide 16: FY March 2023 Full Year Operating Profit Change (vs FY March 2022)

    FY MARCH 2023 FULL YEAR OPERATING PROFIT CHANGE (vs FY MARCH 2022 FULL YEAR) (Billion Yen) ·Increase in wholesales volume by ·Increase in fixed cost related +189,000 units Foreign to investment for growth ·Curbed marketing Exchange Cost such as Large products and expenses, etc. US plant +45.0 Improv

  17. Slide 17: Key Initiatives in FY March 2023

    KEY INITIATIVES IN FY MARCH 2023 M A Z DA M OTO R CO R P ORAT I ON 17

  18. Slide 18: Key Initiatives in FY March 2023

    KEY INITIATIVES IN FY MARCH 2023 1. Management with a sense of speed 2. Management that keeps a finger on the business pulse 3. Successful launch of new products and stable operation of new plant 4. Investment in human resources and people development M A Z DA M OTO R CO R P ORAT I ON 18

  19. Slide 19: Key Initiatives in FY March 2023: Speed and Business Pulse

    KEY INITIATIVES IN FY MARCH 2023 1. Management with a sense of speed  Continue to drive supply chain transformation  Accelerate structural reforms 2. Management that keeps a finger on the business pulse  Enhance brand value and improve net cash by continuously strengthening cost reduction activit

  20. Slide 20: Successful Launch of New Products and Stable Operation of New Plant

    KEY INITIATIVES IN FY MARCH 2023 3. Successful launch of new products and stable operation of new plant 【CX-50】  Production started in January at the new US plant  Sales started in April in USA 【CX-60】  Announced in Europe in March and in Japan in April  Sales to start globally in stages 【CX-90】

  21. Slide 21: Investment in Human Resources and People Development

    KEY INITIATIVES IN FY MARCH 2023 4. Investment in human resources and people development  Key to success is maximum contribution of employees • Introduce system for extending retirement age • Make contract employees regular employees • Step up reskilling, digital education and mid-career hiring to

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  23. Slide 23: Appendix

    APPENDIX M A Z DA M OTO R CO R P ORAT I ON 23

  24. Slide 24: Japan

    JAPAN 149,000 units sold, down 16% year on year Market share declined 0.3 points year on year to 3.5%, and registered vehicle market share decreased 0.4 points to 4.5% Sales volume declined from the prior year due Full Year Sales Volume & Market Share to impact of vehicle supply shortages, etc. (

  25. Slide 25: North America

    NORTH AMERICA 439,000 units sold, up 9% year on year USA: 332,000 units sold, up 13% year on year - Market share rose 0.3 points to 2.3% - Sales of CX-5, CX-9, and CX-30 remained strong - Continued efficient inventory management and streamlining of Full Year Sales Volume & US Market Share marketin

  26. Slide 26: Europe

    EUROPE 190,000 units sold, up 6％ year on year Market share increased 0.1 points to 1.2% Sales of CX-30 remained strong Introduced Mazda2 Hybrid in March 2022 Full Year Sales Volume & Market Share (Thousand units) 1.2% Sales of main markets 1.1% 178 +6% 190 - Germany: 41,000 units, flat year on

  27. Slide 27: China

    CHINA 170,000 units sold, down 26％ year on year Market share declined 0.2 points to 0.6% Sales of CX-4, CX-5, and Mazda6 declined year on year Full Year Sales Volume & Market Share (Thousand units) Mazda3 maintained as solid sales figures as 0.8% last year at about 90,000 units. 228 0.6% -26% 17

  28. Slide 28: Other Markets

    OTHER MARKETS 303,000 units sold, up 1% year on year Australia: 103,000 units, up 12％ year on year ⁃ Market share rose 0.1 points year on year to 9.9% ⁃ Sales volume increased year on year, driven by strong sales of crossover SUV and BT-50 Full Year Sales Volume & Australia Market Share (Thousand

  29. Slide 29: Net Sales by Geographic Area

    NET SALES BY GEOGRAHIC AREA (Billion Yen) 957.9 922.6 843.7 164.2 164.4 803.4 739.1 154.4 692.5 148.6 666.5 147.6 118.3 145.7 151.3 117.2 127.8 123.5 153.5 126.9 111.4 309.0 392.0 376.7 283.3 326.4 Other 60.0 303.4 277.3 234.0 Europe 69.6 North 109.2 America 303.5 214.0 211.6 254.1 197.9 171.1 193.3

  30. Slide 30: Net Sales by Product

    NET SALES BY PRODUCT (Billion Yen) 957.9 922.6 62.0 843.7 67.9 803.4 68.0 60.9 65.3 739.1 55.5 61.4 692.5 65.0 66.7 666.5 58.9 59.7 58.3 59.8 68.0 376.7 827.9 789.4 Other 51.0 721.4 681.2 Parts 43.4 615.2 573.0 540.2 Vehicles / Parts for 282.3 Overseas Production 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY March 202

  31. Slide 31: Net Sales Change (Full Year)

    NET SALES CHANGE (FULL YEAR) FY March 2022 Full Year vs. FY March 2021 Full Year 20% (Billion Yen) FY March 2022 3,120.3 FY March 2021 2,882.1 15% Domestic -1% Overseas +5% 10% +8% +5% 5% +4% 0% Total Volume & Mix Exchange -5% M A Z DA M OTO R CO R P ORAT I ON 31

  32. Slide 32: Net Sales Change (3 Months)

    NET SALES CHANGE (3 MONTHS) FY March 2022 Fourth Quarter vs. FY March 2021 Fourth Quarter 20% (Billion Yen) FY March 2022 957.9 FY March 2021 922.6 15% Domestic -2% 10% Overseas +5% 5% +4% +3% +1% 0% Total Volume & Mix Exchange -5% M A Z DA M OTO R CO R P ORAT I ON 32

  33. Slide 33: Cash Flow and Net Cash

    CASH FLOW AND NET CASH (Billion Yen) FY March 2021 FY March 2022 Change from Full Year Full Year Prior FY End Cash Flow from Operating Activities 120.1 189.2 - Cash Flow from Investing Activities -78.9 -136.2 - Free Cash Flow 41.2 52.9 - Cash and Cash Equivalents 738.8 740.4 +1.6 Interest-bearing De

  34. Slide 34: FY March 2022 Fourth Quarter Financial Metrics (3 Months)

    FY MARCH 2022 FOURTH QUARTER FINANCIAL METRICS (3 MONTHS) (Billion Yen) FY March 2021 FY March 2022 Change Fourth Quarter Fourth Quarter Fourth Quarter Consolidated Wholesale (Thousand Units) 325 303 -22 -7% Net Sales 922.6 957.9 +35.3 +4% Operating Profit 40.8 40.5 -0.3 -1% Ordinary Profit 59.5 63.

  35. Slide 35: FY March 2022 Fourth Quarter Operating Profit Change

    FY MARCH 2022 FOURTH QUARTER OPERATING PROFIT CHANGE （vs FY March 2021 FOURTH QUARTER） (Billion Yen) Impact of hikes in ·Decrease in wholesales volume by -22,000 units raw material prices ·Increased expense for US ·Improved sales quality and semiconductor plant such as per-unit profit, costs was par

  36. Slide 36: FY March 2023 Consolidated Wholesales

    FY MARCH 2023 CONSOLIDATED WHOLESALES (Thousand Units) FY March 2022 FY March 2023 Change 対前年増減 Global Sales Volume Full Year Full Year Full Year 第4四半期 Japan 149 191 +42 +28% North America 439 483 +44 +10% Europe 190 190 0 0% China 170 170 0 0% Other Markets 303 316 +12 +4% Total 1,251 1,349 +98 +8%

  37. Slide 37: Exchange Rate

    EXCHANGE RATE (Yen) FY March 2022 FY March 2023 Change 1st Half 2nd Half Full Year Full Year Full Year US Dollar 110 115 112 123 +11 Euro 131 130 131 133 +3 Canadian Dollar 88 91 90 97 +7 Australian Dollar 83 84 83 89 +6 British Pound 152 155 154 159 +5 M A Z DA M OTO R CO R P ORAT I ON 37

  38. Slide 38: Key Data

    KEY DATA (Billion Yen) 144.3 140.0 134.6 127.4 120.0 105.0 93.0 89.8 90.3 FY March 2021 2022 2023 2021 2022 2023 2021 2022 2023 Capital Depreciation R&D Cost Expenditure Cost M A Z DA M OTO R CO R P ORAT I ON 38

  39. Slide 39: Dividend Payment

    DIVIDEND PAYMENT Dividends Per Share (Yen) Interim Dividends 35 35 35 35 35 Year-end Dividends 30 20 20 20 20 20 15 20 (Forecast) 10 20 15 15 15 15 15 15 10 1 0 FY March 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Results Plan Note) A share consolidation was implemented on common stock with a

  40. Slide 40: Disclaimer

    DISCLAIMER The projections and future strategies shown in this presentation are based on various uncertainties including, but not limited to, the conditions of the world economy in the future, the trend of the automotive industry and the risk of exchange-rate fluctuations. So, please be aware that M

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