Mazda Motor Corp. · TSE:7261
Mazda Motor — FY March 2023 Earnings Presentation
41 slides from Mazda Motor's earnings presentation, May 12, 2023
Slide 1: Financial Results for FY March 2023
FINANCIAL RESULTS FOR FY MARCH 2023 May 12, 2023 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 2023 Results ◼ FY March 2024 Forecast ◼ Overview of Initiatives in the Last 5 Years ◼ FY March 2024 Direction of Initiatives M A Z DA M OTO R CO R P ORAT I ON 2
Slide 3: FY March 2023 Results
FY MARCH 2023 RESULTS M A Z DA M OTO R CO R P ORAT I ON 3
Slide 4: FY March 2023 Full Year Volume Results
FY MARCH 2023 FULL YEAR VOLUME RESULTS (Thousand Units) FY March 2023 Change from Prior Year 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Production Volume* 503 632 1,135 +37 +74 +111 +11% Global Sales Volume Japan 68 97 165 +8 +8 +16 +11% North America 181 226 407 -68 +35 -33 -7% Europe
Slide 5: Global Sales Volume Performance (Excluding China)
GLOBAL SALES VOLUME PERFORMANCE (EXCLUDING CHINA) FY March 2022 As production and inventory (Thousand Units) 306 recovered, sales improved mainly 303 in the US where sales were strong 300 Up approx. 10% year on year 285 265 257 256 Production and sales 250 declined due to Shanghai lockdown 225 2023年
Slide 6: FY March 2023 Full Year Financial Metrics
FY MARCH 2023 FULL YEAR FINANCIAL METRICS Change from (Billion Yen) FY March 2023 Change from Prior Year Feb. Forecast 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Full Year Consolidated Wholesales 450 609 1,059 -30 +99 +68 +7% -28 (Thousand Units) Net Sales 1,642.5 2,184.3 3,826.8 +146.6
Slide 7: Change in FY March 2023 Full Year Operating Income (vs. FY March 2022)
CHANGE IN FY MARCH 2023 FULL YEAR OPERATING INCOME (vs. FY MARCH 2022 FULL YEAR) ·Increase in wholesale Foreign volume by Exchange (Billion Yen) +68,000 units Raw Material, ·Improvement in +119.2 Logistics Costs, etc. ·Increase in depreciation costs due to per-unit price, investment for growth in La
Slide 8: Change in FY March 2023 Full Year Operating Income (vs. February Forecast)
CHANGE IN FY MARCH 2023 FULL YEAR OPERATING INCOME (vs. FEBRUARY FORECAST) (Billion Yen) ·Decrease in wholesales volume by -28,000 units Volume & Foreign Raw Material, Fixed Costs, 150.0 Mix Exchange Logistics Costs, etc. Cost Other Improvement 142.0 +7.3 +2.4 +1.4 -1.7 -17.4 USD +1.4 EUR +3.7 CAD +
Slide 9: FY March 2024 Forecast
FY MARCH 2024 FORECAST M A Z DA M OTO R CO R P ORAT I ON 9
Slide 10: FY March 2024 Full Year Volume Forecast
FY MARCH 2024 FULL YEAR VOLUME FORECAST (Thousand Units) FY March 2023 FY March 2024 Change from Prior Year Full Year Full Year Full Year Global Sales Volume Japan 165 183 +19 +11% North America 407 496 +90 +22% Europe 160 189 +29 +18% Other Markets 294 306 +12 +4% Sub Total (Excl. China) 1,026 1,17
Slide 11: FY March 2024 Full Year Financial Metrics
FY MARCH 2024 FULL YEAR FINANCIAL METRICS (Billion Yen) FY March 2023 FY March 2024 Change from Prior Year 対11月 Full Year Full Year Full Year Consolidated Wholesales 1,059 1,200 +141 +13% (Thousand Units) Net Sales 3,826.8 4,500.0 +673.2 +18% Operating Income 142.0 180.0 +38.0 +27% Ordinary Income 1
Slide 12: Change in FY March 2024 Full Year Operating Income
CHANGE IN FY MARCH 2024 FULL YEAR OPERATING INCOME (vs. FY MARCH 2023 FULL YEAR) ·Increase in wholesale volume by +141,000 units ·Improvement in (Billion Yen) per-unit price, etc. Volume & ·Investments in people, including Mix Foreign wage increases Exchange ·Enhancement of R&D for CASE, etc. +121.5
Slide 13: Summary
SUMMARY ◼ FY March 2023 Results ➢ Sales and profit improved year on year. Operating return on sales grew 0.4 points year on year to 3.7% ➢ Increase in consolidated wholesales, initiatives to improve per-unit price and reduce marketing expenses, and the effects of a weaker yen contributed to offsetti
Slide 14: Overview of Initiatives in the Last 5 Years
OVERVIEW OF INITIATIVES IN THE LAST 5 YEARS M A Z DA M OTO R CO R P ORAT I ON 14
Slide 15: Overview of Initiatives in the Last 5 Years
OVERVIEW OF INITIATIVES IN THE LAST 5 YEARS ◼ Environmental change in the last 5 years ➢ Political turmoil, unstable exchange rates, torrential rains and flooding ➢ Sharp drop in demand and deterioration in cash flow due to Covid-19 ➢ Decline in production due to semiconductor shortages ➢ Ongoing ma
Slide 16: Global Sales Volume and Per-Unit Net Sales
OVERVIEW OF INITIATIVES IN THE LAST 5 YEARS ◼ Global sales volume and per-unit net sales* (Thousand yen) (Thousand units) 4000 Per-unit net sales (left) Global sales (right) 2000 1500 3000 1000 2000 500 1000 0 FY19/3 FY20/3 FY21/3 FY22/3 FY23/3 Structural Reform Stage 2 Mid-term Management Plan 【FY
Slide 17: Operating Income Changes Since FY March 2019
OVERVIEW OF INITIATIVES IN THE LAST 5 YEARS - OPERATING INCOME CHANGES SINCE FY MARCH 2019 ✓ The impact of hikes in raw material and logistics costs and delays in ✓ In addition to declines in demand and impact on production recovery due to semiconductor shortages was offset by per- production due to
Slide 18: Restructuring of the US Sales Network
OVERVIEW OF INITIATIVES IN THE LAST 5 YEARS ◼Restructuring of the US sales network to improve sales quality ➢ Transaction price Increased approximately $7,000 from $26,700 in 2018 to $33,700 in 2022 Source: Power Information Network ® ➢ Residual value improvement [Residual Value Rate at launch] CX-9
Slide 19: Overview of Initiatives: Alabama Plant, Large Products, Electrification
OVERVIEW OF INITIATIVES IN THE LAST 5 YEARS ◼ Start of operation of new US plant in ◼ Development and introduction of Alabama Large Products MAZDA CX-60 MAZDA CX-90 ◼ Introduction of BEV and ◼ Announcement of mid-term development/introduction of electrification management plan update and technologie
Slide 20: FY March 2024 Direction of Initiatives
FY MARCH 2024 DIRECTION OF INITIATIVES M A Z DA M OTO R CO R P ORAT I ON 20
Slide 21: FY March 2024 Direction of Initiatives
FY MARCH 2024 DIRECTION OF INITIATIVES ◼ Achievement of growth through new products and sales ➢ This year is an important year for getting on a growth path by utilizing assets accumulated through our building block strategy ➢ The introduction of the CX-90 in North America and increase in the supply
Slide 22: FY March 2024 Initiatives
FY MARCH 2024 INITIATIVES 1. Increase in net sales per unit 2. Market introduction of electrified products 3. Building of partnerships for electrification 4. Promotion of cost reduction activities across the company 5. Initiatives in carbon neutrality M A Z DA M OTO R CO R P ORAT I ON 22
Slide 23: Increase in Net Sales per Unit
FY MARCH 2024 INITIATIVES 1. Increase in net sales per unit ◼ Successful full-scale introduction of the CX-90 in the US in April ➢ Customer feedback was used to develop product marketability. The response from customers/dealers from the beginning of publicity has been excellent ➢ The CX-90 achieved
Slide 24: Electrified Products, Partnerships and Cost Reduction
FY MARCH 2024 INITIATIVES 2. Market introduction of electrified products ◼ Utilizing multi-electrification technology, expand the introduction of PHEVs and mild hybrid applications to Large Products ◼ Introduce MX-30 e-SKYACTIV R-EV in Europe and Japan 3. Building of partnerships for electrification
Slide 25: Initiatives in Carbon Neutrality
FY MARCH 2024 INITIATIVES 5. Initiatives in carbon neutrality ◼ Set targets and create a roadmap to carbon neutrality (CN), and accelerate initiatives based on the following principles ➢ Using all available means and technologies, reduce carbon emissions as much as possible in our respective work op
Slide 26: Reducing Global CO2 Emissions in Business Areas
FY MARCH 2024 INITIATIVES 5. Initiatives in carbon neutrality ◼ Reduce Mazda’s global CO2 emissions in business areas by promoting energy conservation and the use of renewable energy and CN fuels （SCOPE1-2） ➢ In FY2021 Mazda achieved an approximate 30% reduction in CO2 emissions compared with emissi
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Slide 28: Appendix
APPENDIX M A Z DA M OTO R CO R P ORAT I ON 28
Slide 29: Japan
JAPAN ◼ Sales in the three months of the fourth quarter were up 6% year on year, continuing the trend from the MAZDA CX-60 second and third quarters of outperforming the prior year ◼ Full-year sales were 165,000 units, up 11% year on year. Market share increased 0.3 points year on year to 3.8%, whil
Slide 30: North America
NORTH AMERICA ◼ USA: - Sales in the three months of the fourth quarter increased 7% year on year and also increased 11% from the third quarter. Sales performance continues to improve - In addition to the CX-50 launched in April 2022, the CX-30 and other models contributed to the sales increase - Ful
Slide 31: Europe
EUROPE ◼ Sales in the three months of the fourth quarter, led MAZDA CX-60 by electrified models such as the Mazda2 Hybrid and the CX-60, rose 21% year on year ◼ Full-year sales: 160,000 units, down 16% year on year. Market share decreased 0.1 points year on year to 1.1% ◼ Full-year sales declined ma
Slide 32: China
CHINA ◼ Sales in the three months of the fourth quarter were down 66% year on year MAZDA CX-50MAZDA CX-50 ◼ Full-year sales: 84,000 units, down 50% year on year. Market share declined 0.3 points to 0.3% ◼ Sales decreased year on year due to intensified price competition in addition to the completion
Slide 33: Other Markets
OTHER MARKETS ◼ Sales in the three months of the fourth quarter were down 8% year on year ◼ Full-year sales volume was 294,000 units, down 3% year on year ◼ Australia: ⁃ Full-year sales: 91,000 units, down 12% year on year. Market share declined 1.5 points to 8.4% Full Year Sales Volume & ⁃ Sales in
Slide 34: Production Volume
PRODUCTION VOLUME FY March 2023 Fourth Quarter FY March 2022 FY March 2023 FY March 2023 FY March 2023 326,000 units Fourth Quarter First Quarter Second Quarter Third Quarter 283,000 units 209,000 units 294,000 units 306,000 units Impact of Production Shanghai lockdown 124 volume 112 (Thousand Units
Slide 35: Cash Flow and Net Cash
CASH FLOW AND NET CASH (Billion Yen) FY March 2022 FY March 2023 Change from Full Year Full Year Prior FY End Cash Flow from Operating Activities 189.2 137.4 - Cash Flow from Investing Activities -136.2 -99.4 - Free Cash Flow 52.9 38.0 - Cash and Cash Equivalents 740.4 717.1 -23.3 Interest-bearing D
Slide 36: FY March 2023 Fourth Quarter Global Sales and Consolidated Wholesales
FY MARCH 2023 FOURTH QUARTER GLOBAL SALES AND CONSOLIDATED WHOLESALES (3 MONTHS) Change from (Thousand Units) FY March 2022 FY March 2023 Change from Prior Year Feb. Forecast Global Sales Volume 4th Quarter 4th Quarter 4th Quarter Full Year Japan 54 57 +3 +6% -9 North America 107 119 +12 +12% -15 Eu
Slide 37: FY March 2023 Fourth Quarter Financial Metrics
FY MARCH 2023 FOURTH QUARTER FINANCIAL METRICS (3 MONTHS) (Billion Yen) FY March 2022 FY March 2023 Change from Prior Year 4th Quarter 4th Quarter 4th Quarter Net Sales 957.9 1,130.5 +172.6 +18% Operating Income 40.5 32.5 -8.0 -20% Ordinary Income 63.9 50.5 -13.4 -21% Income before Income Taxes 61.5
Slide 38: Change in Fourth Quarter Operating Income
CHANGE IN FY MARCH 2023 FOURTH QUARTER OPERATING INCOME (vs. FY MARCH 2022 FOURTH QUARTER) (Billion Yen) ·Increase in wholesale volume by +19,000 units ·Improvement in per-unit price, etc. Foreign Exchange Raw Material, Volume & +12.8 Logistics Costs, etc. Mix ·Increase in R&D costs, etc. +16.9 Cost
Slide 39: Exchange Rate
EXCHANGE RATE Change from (Yen) FY March 2023 FY March 2024 Prior Year Full Year Full Year Full Year US Dollar 136 128 -7 Euro 141 139 -2 Canadian Dollar 102 97 -6 Australian Dollar 93 90 -3 British Pound 163 160 -4 M A Z DA M OTO R CO R P ORAT I ON 39
Slide 40: Dividend Payment
DIVIDEND PAYMENT Dividends Per Share (Yen) 45 45 Interim Dividend Year-end Dividend 35 35 35 35 (Forecast) 30 25 25 20 20 20 20 15 20 10 20 20 20 15 15 15 15 15 10 1 0 FY March 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Results Plan Note: A share consolidation was implemented on common s
Slide 41: 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