Mazda Motor Corp. · TSE:7261
Mazda Motor — Q1 FY March 2024 Earnings Presentation
27 slides from Mazda Motor's earnings presentation, Aug 8, 2023
Slide 1: Fiscal Year March 2024 First Quarter Financial Results
FISCAL YEAR MARCH 2024 FIRST QUARTER FINANCIAL RESULTS August 8, 2023 Mazda Motor Corporation M A Z DA M OTO R CO R PO RAT I O N
Slide 2: FY March 2024 First Quarter Results
FY MARCH 2024 FIRST QUARTER RESULTS M A Z DA M OTO R CO R P ORAT I ON 2
Slide 3: First Quarter Overview
FIRST QUARTER OVERVIEW ➢ Global sales growth largely on plan excluding China and ASEAN ➢ Contribution from new Large products on track ➢ Global logistics challenges remain, especially in Australia ➢ Operating income up sharply from year-ago Shanghai lockdown levels ➢ One-time quality-related costs ➢
Slide 4: FY March 2024 First Quarter Volume Results
FY MARCH 2024 FIRST QUARTER VOLUME RESULTS (Thousand Units) FY March 2023 FY March 2024 Change from Prior Year 1st Quarter 1st Quarter 1st Quarter Production Volume* 209 284 +75 +36% Global Sales Volume Japan 25 42 +17 +70% North America 79 128 +49 +61% Europe 30 44 +14 +46% China 24 20 -4 -17% Othe
Slide 5: FY March 2024 First Quarter Financial Metrics
FY MARCH 2024 FIRST QUARTER FINANCIAL METRICS (Billion Yen) FY March 2023 FY March 2024 Change from Prior Year 1st Quarter 1st Quarter 1st Quarter Consolidated Wholesales 166 286 +120 +72% (Thousand Units) Net Sales 617.2 1,091.0 +473.8 +77% Operating Income -19.5 30.0 +49.5 - Ordinary Income 20.7 6
Slide 6: Change in FY March 2024 First Quarter Operating Income
CHANGE IN FY MARCH 2024 FIRST QUARTER OPERATING INCOME (vs. FY March 2023 First Quarter) (Billion Yen) ·Increase in wholesale volume by ·Increase in quality-related costs +120,000 units ·Increase in advertising costs for ·Increase in sales of Large introductions of new models products ·Investments i
Slide 7: Update of Large Products Rollout
UPDATE OF LARGE PRODUCTS ROLLOUT CX-90 CX-60 • Launched sales in US in April 2023 • Introduced in Europe and Japan in • Sold 7,000 units in the first quarter 2022 • Very positive media reaction, with • Sold 13,000 units in the first quarter an increase in web visitors after • Introduced in Australia
Slide 8: Update of CX-50 in US
UPDATE OF CX-50 IN US • Commenced two-shift production in the US plant in July 2023 • Sold 12,000 units in the first quarter. Solid inquiries and sales at a high turn rate continue • With enhanced supply capacity, plans to increase sales volume for the second half (North American version) of the yea
Slide 9: Initiatives in Electrification
INITIATIVES IN ELECTRIFICATION Launch of MX-30 e-SKYACTIV R-EV production • Mazda’s unique series-type plug-in hybrid model, using a rotary engine as a power generator • To be introduced in Europe this fiscal year Agreement to enter into discussions with Panasonic Energy about a medium- to long-term
Slide 10: FY March 2024 Full Year Forecast
FY MARCH 2024 FULL YEAR FORECAST M A Z DA M OTO R CO R P ORAT I ON 10
Slide 11: FY March 2024 Full Year Forecast Overview
FY MARCH 2024 FULL YEAR FORECAST OVERVIEW ➢ Sales growth on track in US, Europe, Japan; Study revision for China and ASEAN toward the second quarter ➢ Second shift ramp up at US plant started from July ➢ Broadly stronger yen expected along with higher material costs ➢ Logistics and production secure
Slide 12: 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% China 84 125 +41 +48% Other Markets 294 306 +12 +4% Total 1,110
Slide 13: 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 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 185.9
Slide 14: Summary
SUMMARY ➢ First-quarter operating income of ¥30 billion impacted especially by one-time factors ➢ Steady progress of Large product introduction and second shift at US plant key to full year ambition ➢ Taking countermeasures in China and ASEAN where sales declined year-on-year ➢ Maintain needed inves
Slide 15: Slide 15
Slide 16: Appendix
APPENDIX M A Z DA M OTO R CO R P ORAT I ON 16
Slide 17: Japan
JAPAN MAZDA CX-60 ◼ 42,000 units sold, up 70% year on year ◼ In addition to production improvement, sales of crossover SUVs including the CX-60 contributed to volume recovery to pre-covid level ◼ 6,000 units of the CX-60 were sold in the first First Quarter Sales Volume & quarter, driving year-on-ye
Slide 18: North America
NORTH AMERICA ◼ USA: - Sales volume increased 58% year on year to 95,000 units, which was 8% up from the 4th quarter of the last fiscal year, maintaining strong sales momentum - Market share increased 0.6 points year on year to 2.3% - In addition to strong sales of the CX-5, sales of the CX-30 and C
Slide 19: Europe
EUROPE ◼ 44,000 units sold, up 46% year on year. MAZDA CX-60 The CX-60, introduced last summer, and the CX-5 contributed to growth in sales ◼ 6,000 units of the CX-60 were sold in the first quarter ◼ Market share rose 0.3 points year on year to 1.1% First Quarter Sales Volume & Market Share (Thousan
Slide 20: China
CHINA ◼ 20,000 units sold, down 17% year on year MAZDA CX-50 due to lower sales of the Mazda3, our volume sales model ◼ Market share declined 0.1 point year on year to 0.3% First Quarter Sales Volume & ◼ Sales of the CX-50 began in May 2023 Market Share (Thousand units) 0.4% 0.3% 24 -17% 20 24 20 FY
Slide 21: Other Markets
OTHER MARKETS ◼ 75,000 units sold, unchanged from the prior year ◼ Australia: ⁃ 25,000 units sold, up 25% year on year. Sales of the CX-3 and BT-50 increased ⁃ Market share rose 0.7 points year on year to 8.0% ⁃ The BT-50 achieved highest single-month sales ever First Quarter Sales Volume & Australi
Slide 22: Cash Flow and Net Cash
CASH FLOW AND NET CASH (Billion Yen) FY March 2023 FY March 2024 Change from Full Year 1st Quarter Prior FY End Cash Flow from Operating Activities 137.4 28.4 - Cash Flow from Investing Activities -99.4 -28.8 - Free Cash Flow 38.0 -0.4 - Cash and Cash Equivalents 717.1 686.1 -31.0 Interest-bearing D
Slide 23: Production Volume
PRODUCTION VOLUME FY March 2023 FY March 2024 Fourth Quarter First Quarter 326,000 units 284,000 units Continue to produce 100,000 units a month to achieve full-year wholesales volume forecast of Production 124 1.2 million units volume Due to fewer (Thousand Units) number of 104 103operating days 10
Slide 24: 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. ·Investments in people, including Volume & wage increases Mix Foreign ·Enhancement of R&D for CASE, etc. Exchange +121.5
Slide 25: 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 Thai Baht 3.84 3.81 -0.03 Mexican Peso 6.90 6.73 -0.17 M A Z DA M OTO R CO R P ORAT
Slide 26: Dividend Payment
DIVIDEND PAYMENT Dividends Per Share (Yen) 45 45 Interim Dividend Year-end Dividend 35 35 35 35 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 of common stock was implemented at a r
Slide 27: 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