Mazda Motor Corp. · TSE:7261
Mazda Motor — Q1 FY March 2025 Earnings Presentation
30 slides from Mazda Motor's earnings presentation, Aug 7, 2024
Slide 1: Fiscal Year March 2025 First Quarter Financial Results
FISCAL YEAR MARCH 2025 FIRST QUARTER FINANCIAL RESULTS MAZDA CX-70 August 7, 2024 Mazda Motor Corporation M A Z DA M OTO R CO R PO RAT I O N
Slide 2: Presentation Outline
PRESENTATION OUTLINE ▪FY March 2025 First Quarter Results ▪FY March 2025 Full Year Forecast ▪Summary M A Z DA M OTO R CO R P ORAT I ON 2
Slide 3: FY March 2025 First Quarter Results
FY MARCH 2025 FIRST QUARTER RESULTS M A Z DA M OTO R CO R P ORAT I ON 3
Slide 4: FY March 2025 First Quarter Results
FY MARCH 2025 FIRST QUARTER RESULTS ▪ Global sales were 309,000 units, same level as the prior fiscal year ⁃ Sales volumes in the North American market hit a first-quarter record high* ⁃ Responded flexibly to changes in the competitive environment in major markets. Enhanced sales promotion measures
Slide 5: FY March 2025 First Quarter Volume Results
FY MARCH 2025 FIRST QUARTER VOLUME RESULTS (Thousand Units) FY March 2024 FY March 2025 Change from Prior Year 1st Quarter 1st Quarter 1st Quarter Production Volume* 284 300 +17 +6% Global Sales Volume Japan 42 29 -13 -31% North America 128 146 +18 +14% Europe 44 49 +5 +12% China 20 18 -2 -9% Other
Slide 6: FY March 2025 First Quarter Financial Metrics
FY MARCH 2025 FIRST QUARTER FINANCIAL METRICS (Billion Yen) FY March 2024 FY March 2025 Change from Prior Year 1st Quarter 1st Quarter 1st Quarter Consolidated Wholesales 286 291 +6 +2% (Thousand Units) Net Sales 1,091.0 1,205.6 +114.6 +11% Operating Income 30.0 50.4 +20.4 +68% Ordinary Income 63.9
Slide 7: Difference in First Quarter Operating Income
DIFFERENCE IN FY MARCH 2025 FIRST QUARTER OPERATING INCOME (vs. FY MARCH 2024 FIRST QUARTER) Fixed Costs, (Billion Yen) Other Foreign +12.3 50.4 Exchange Raw Material, Cost Volume & +43.9 Logistics Costs, etc. Improvement Mix Sales +3.8 +3.3 Incentives 30.0 -7.8 FY March -35.1 FY March 2024 2025 Cha
Slide 8: Trend of U.S. Sales Incentives
TREND OF U.S. SALES INCENTIVES ▪Strengthen sales promotions for top-line growth in response to market trends ▪Reduce sales incentives post-2Q peak through new products and enhanced product appeal Change in Sales Incentives Per Unit in the U.S. $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 FY22-1
Slide 9: FY March 2025 Full Year Forecast
FY MARCH 2025 FULL YEAR FORECAST M A Z DA M OTO R CO R P ORAT I ON 9
Slide 10: FY March 2025 Full Year Forecast
FY MARCH 2025 FULL YEAR FORECAST Aim to grow top line by leveraging North American market and Large products. Make steady progress in electrification and value creation for the future as well as improvement in management efficiency Full year forecast ▪Forecast for global sales and consolidated whole
Slide 11: Progress of Initiatives for Raising Top Line Results (U.S. Example)
PROGRESS OF INITIATIVES FOR RAISING TOP LINE RESULTS (U.S. EXAMPLE) ▪ Market share in the U.S. hit a first-quarter record high* ▪ Segment share of the CX-90 hit a record high in July 2024* U.S. Sales Volume & Market Share 3.1% 2.8% 2.6% 2.6% 2.7% 2.5% 2.3% 40 37 36 36 33 31 30 300th Retail Evolution
Slide 12: Progress of Initiatives for Raising Top Line Results
PROGRESS OF INITIATIVES FOR RAISING TOP LINE RESULTS ▪ Steady growth in global sales, especially ▪ Introduce CX-70 and CX-80 in this fiscal in North America year. All four Large products will become ▪ Begin sales of the CX-50 hybrid model in the available and drive volume growth latter half of 2024
Slide 13: Progress Toward Electrification
PROGRESS TOWARD ELECTRIFICATION ▪ Steady progress in multi-solution initiatives to achieve carbon neutrality (CN) ⁃ Combination of gasoline, diesel, and rotary engines with electrification devices offers a wide variety of options ⁃ Subaru, Toyota and Mazda announced their commitment to developing in
Slide 14: Value Creation and Improvement of Management Efficiency Through Investment in People
VALUE CREATION AND IMPROVEMENT OF MANAGEMENT EFFICIENCY THROUGH INVESTMENT IN PEOPLE AND CO-CREATION BETWEEN PEOPLE AND IT ▪ Promote organizational culture transformation and operational process reform through DX to create an Organizational Business Process environment in which employees can focus o
Slide 15: FY March 2025 Full Year Volume Forecast
FY MARCH 2025 FULL YEAR VOLUME FORECAST Change from Change from (Thousand Units) FY March 2024 FY March 2025 Prior Year May Forecast Full Year Full Year Full Year Full Year Global Sales Volume Japan 160 180 +20 +13% 0 North America 514 600 +86 +17% 0 Europe 180 183 +3 +2% 0 China 97 98 +1 +1% 0 Othe
Slide 16: FY March 2025 Full Year Financial Metrics
FY MARCH 2025 FULL YEAR FINANCIAL METRICS Change from (Billion Yen) FY March 2024 FY March 2025 Change from Prior Year May Forecast Full Year Full Year Full Year Full Year Consolidated Wholesales 1,202 1,300 +98 +8% 0 (Thousand Units) Net Sales 4,827.7 5,350.0 +522.3 +11% 0.0 Operating Income 250.5
Slide 17: Difference in Operating Income (vs. May Forecast)
DIFFERENCE IN FY MARCH 2025 OPERATING INCOME (vs. MAY FORECAST) (Billion Yen) Volume & Foreign Fixed Costs, Cost Mix Exchange Other Improvement 270.0 Sales Raw Material, 0.0 +54.0 +10.0 0.0 270.0 Incentives Logistics Costs, etc. -10.0 -54.0 May Forecast Change from May Forecast 0.0 August Forecast V
Slide 18: Difference in Operating Income (vs. FY March 2024)
DIFFERENCE IN FY MARCH 2025 OPERATING INCOME (vs. FY MARCH 2024) Volume & (Billion Yen) Mix Sales +134.0 Incentives Foreign Exchange Raw Material, Cost Logistics Costs, etc. Improvement +44.0 Fixed Costs, +25.0 Other 270.0 250.5 -102.0 -45.5 -36.0 FY March Change from Prior Year +19.5 FY March 2024
Slide 19: Summary
SUMMARY ▪ Continued strong sales in North America mainly due to contributions of Large products ▪ Forecast for global sales volume and consolidated wholesales volume remains unchanged ▪ Profit forecast remains unchanged from our May announcement, while foreign exchange rate assumptions are revised ▪
Slide 20: Slide 20
Slide 21: Appendix
APPENDIX M A Z DA M OTO R CO R P ORAT I ON 21
Slide 22: Japan
JAPAN ▪ 29,000 units sold, down 31% year on year ▪ Sales declined mainly due to discontinuation of CX-8 production in December 2023 and the end of the new car effect of the CX-60 ▪ Market share declined 1.1 points to 2.9% year on year. Registered vehicle market share was 3.2%, down 1.8 First Quarter
Slide 23: North America
NORTH AMERICA ▪ 146,000 units sold, up 14% year on year, achieving the highest-ever first quarter sales MAZDA CX-70 ▪ Full year sales forecast is 600,000 units, up 17% year on year ▪ USA: - 102,000 units sold, up 7% year on year. Market share was 2.5%, up 0.2 points year on year - The addition of a
Slide 24: Europe
EUROPE ▪ 49,000 units sold, up 12% year on year ▪ Market share rose 0.1 points year on year to 1.2% ▪ Sales volume and market share improved due to continued strong sales. Sales volumes of the CX-30, CX-5 and Mazda2 increased through measures to strengthen sales in each country First Quarter Sales V
Slide 25: China
CHINA ▪ 18,000 units sold, down 9% year on year MAZDA EZ-6 ▪ Market share declined 0.1 points year on year to 0.2% ▪ Demand for new energy vehicles increased. Sales volume and market share decreased due to increased competition of vehicles with internal First Quarter Sales Volume & combustion engine
Slide 26: Other Markets
OTHER MARKETS ▪ 67,000 units sold, down 10% year on year ▪ Full year sales forecast is 339,000 units, up 17% year on year ▪ Australia: ⁃ 25,000 units sold, down 1% year on year. CX-5, CX-3 and MX-5 maintained strong sales and First Quarter Sales Volume & increased the volumes Australia Market Share
Slide 27: Cash Flow and Net Cash
CASH FLOW AND NET CASH (Billion Yen) FY March 2024 FY March 2025 Change from Full Year 1st Quarter Prior FY End Cash Flow from Operating Activities 418.9 26.2 - Cash Flow from Investing Activities -179.9 -20.2 - Free Cash Flow 239.0 6.0 - Cash and Cash Equivalents 919.3 944.9 +25.6 Interest-bearing
Slide 28: Exchange Rates
EXCHANGE RATES Change from Change from (Yen) FY March 2024 FY March 2025 Prior Year May Forecast Full Year Full Year Full Year Full Year US Dollar 145 150 +5 +7 Euro 157 162 +5 +7 Canadian Dollar 107 109 +2 +3 Australian Dollar 95 99 +4 +5 British Pound 182 190 +8 +9 Thai Baht 4.11 4.11 +0.01 +0.11
Slide 29: Dividend Payment
DIVIDEND PAYMENT Dividend Payment Per Share (Yen) Interim Dividend Year-end Dividend Special Dividend 60 5 45 FY March 2025 Year-end 35 35 35 35 30 Dividend To Be 30 25 Determined 20 20 20 20 20 15 10 25 25 20 20 15 15 15 15 15 0 FY March 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Result
Slide 30: Disclaimer
DISCLAIMER The projections and future strategies shown in this presentation are based on various uncertainties including but not limited to conditions of the world economy in the future, trends in the automotive industry, and the risk of exchange rate fluctuations. Consequently, Mazda's actual perfo