Mazda Motor Corp. · TSE:7261
Mazda Motor — Q2 FY March 2023 Earnings Presentation
40 slides from Mazda Motor's earnings presentation, Nov 10, 2022
Slide 1: Financial Results for FY March 2023 Second Quarter
FINANCIAL RESULTS FOR FY MARCH 2023 SECOND QUARTER November 10, 2022 Mazda Motor Corporation M A Z DA M OTO R CO R PO RAT I O N
Slide 2: Presentation Outline
PRESENTATION OUTLINE ◼ Financial Results Summary ◼ FY March 2023 First Half Results ◼ FY March 2023 Full Year Forecast ◼ Sales Highlights ◼ Summary M A Z DA M OTO R CO R P ORAT I ON 2
Slide 3: Financial Results Summary
FINANCIAL RESULTS SUMMARY M A Z DA M OTO R CO R P ORAT I ON 3
Slide 4: Financial Results Summary
FINANCIAL RESULTS SUMMARY ◼ First-half net sales and profit increased year on year, and the full-year forecast has been revised upwards ◼ The second quarter production and consolidated wholesales did not reach the target of 300,000 units, primarily due to an unstable supply of semiconductors and a s
Slide 5: First Half Results
FY MARCH 2023 FIRST HALF RESULTS M A Z DA M OTO R CO R P ORAT I ON 5
Slide 6: First Half Volume Results
FY MARCH 2023 FIRST HALF VOLUME RESULTS • Production volume and consolidated wholesales in the second quarter recovered to a higher level than in the prior year • Despite a year-on-year decline in global sales volume due to the Shanghai lockdown, sales volume recovered to the prior year’s level from
Slide 7: First Half Financial Metrics
FY MARCH 2023 FIRST HALF FINANCIAL METRICS • Net sales and profit increased year-on-year due to per-unit profit improvement as well as the positive effect from the depreciation of the yen, which more than offset raw material price hikes, a decline in wholesales due to the Shanghai lockdown, and othe
Slide 8: Change in First Half Operating Income
CHANGE IN FY MARCH 2023 FIRST HALF OPERATING INCOME (vs FY MARCH 2022 FIRST HALF) (Billion Yen) ·Impact of hikes in raw material prices, etc. of approx. –¥80.0 billion ·Cost improvement efforts of approx. +¥20.0 billion Foreign ·Wholesale reduction, deterioration in Exchange mix, etc. of approx. -¥4
Slide 9: Full Year Forecast
FY MARCH 2023 FULL YEAR FORECAST M A Z DA M OTO R CO R P ORAT I ON 9
Slide 10: Full Year Global Sales Forecast
FY MARCH 2023 FULL YEAR GLOBAL SALES FORECAST • Full-year sales are projected to decline by 133,000 units from the May forecast to 1,216,000 units • The plan was revised, reflecting the impact of production cuts and a shortage of carrier vessels Change from (Thousand Units) FY March 2022 FY March 20
Slide 11: Full Year Forecast Financial Metrics
FY MARCH 2023 FULL YEAR FORECAST FINANCIAL METRICS • Consolidated wholesales are projected to be down 80,000 units from the May forecast to 1,100,000 units • Forecasts for all profit levels have been revised upwards, reflecting per-unit profit improvement and fixed cost reductions, as well as change
Slide 12: Change in Full Year Operating Income (vs. prior year)
CHANGE IN FY MARCH 2023 FULL YEAR OPERATING INCOME (vs. FY MARCH 2022 FULL YEAR) (Billion Yen) Foreign Exchange Cost ·Wholesale increase ·Increases in fixed costs related to +109,000 units +110.6 Improvement investment for growth, costs related to ·Improvement in per- environmental regulations, etc.
Slide 13: Change in Full Year Operating Income (vs. May Forecast)
CHANGE IN FY MARCH 2023 FULL YEAR OPERATING INCOME (vs. FY MARCH 2023 MAY FORECAST) (Billion Yen) ·Decrease in wholesales volume Foreign ·Costs related to environmental by -80,000 units Exchange Cost regulations, etc. ·Improvement in per-unit profit, Improvement ·Ongoing fixed cost reduction reducti
Slide 14: Sales Highlights
SALES HIGHLIGHTS M A Z DA M OTO R CO R P ORAT I ON 14
Slide 15: Sales Quality Improvement
SALES QUALITY IMPROVEMENT ◼ Equal allocations to global markets as supply is restricted ◼ Continue to enhance sales quality through improving per-unit profit and streamlining costs on a global scale Revenue per Unit Variable Marketing Cost Port / Dealer Stock to Revenue USA Japan Europe Australia US
Slide 16: Status of New Products
STATUS OF NEW PRODUCTS ◼ CX-60 order intake has been strong in Japan and Europe • Japan: 14,000 units (cumulative order intake as of end of October) • Europe: 19,000 units (cumulative order intake as of end of October) ◼ CX-50 sales volume is 16,000 units (cumulative sales from April to October) ◼ B
Slide 17: Summary
SUMMARY M A Z DA M OTO R CO R P ORAT I ON 17
Slide 18: Summary
SUMMARY First half overview ◼ Net sales and profit increased year on year ◼ Improved profitability and foreign exchange offset the impact of higher raw material price and impact on sales due to production constraints Second half business environment assumptions ◼ Semiconductor shortage, surge in raw
Slide 19: Slide 19
Slide 20: Appendix
APPENDIX M A Z DA M OTO R CO R P ORAT I ON 20
Slide 21: Japan
JAPAN ◼ 68,000 units sold, up 14% year on year MAZDA CX-60 ◼ Total market share increased 0.6 points year on year to 3.5%, while registered vehicle market share increased 1.1 points year on year to 4.6% ◼ The CX-60, the first in the Large product group, was introduced in September, and achieved more
Slide 22: North America
NORTH AMERICA ◼ 181,000 units sold, down 27% year on year MAZDA CX-50 ◼ USA:133,000 units, down 30% year on year - Market share decreased 0.5 points year on year to 1.9% - Sales declined year on year due to cuts in production caused by the Shanghai lockdown First Half Sales Volume & - Curbing of mar
Slide 23: Europe
EUROPE ◼ 67,000 units sold, down 37% year on year ◼ Market share decreased 0.3 points year on year to 1.0% ◼ Sales declined year on year due to cuts in production caused by the Shanghai lockdown MAZDA CX-60 ◼ A plug-in hybrid model of the CX-60, launched in the First Half Sales Volume & second quart
Slide 24: China
CHINA ◼ 49,000 units sold, down 45% year-on year ◼ Market share was 0.4%, down 0.4 points year on year ◼ Sales volume was down year on year due to cuts in production and sales activity restrictions driven by the lockdown in Shanghai First Half Sales Volume & ◼ Mazda focused on continuing right-price
Slide 25: Other Markets
OTHER MARKETS ◼ 150,000 units sold, down 4% year-on-year ◼ Australia: 44,000 units, down 21% year-on year ⁃ Market share was 8.0%, down 2.1 points year on year ⁃ Sales declined year on year due to cuts in production caused by the Shanghai lockdown ◼ ASEAN: 46,000 units, up 45% year over year First H
Slide 26: Production Volume
PRODUCTION VOLUME FY March 2022 FY March 2023 FY March 2023 Full year wholesales volume is Fourth Quarter First Quarter Second Quarter forecast to reach 1.1 million 283,000 units 209,000 units 294,000 units units following a recovery in production in the second half Production Shanghai lockdown volu
Slide 27: Net Sales by Geographic Area
NET SALES BY GEOGRAHIC AREA (Billion Yen) 1,025.3 957.9 172.9 803.4 164.2 164.4 Other 148.6 692.5 666.5 147.6 617.2 117.2 127.8 Europe 153.5 110.8 126.9 111.4 87.2 447.8 392.0 North 303.4 America 277.3 234.0 253.4 254.1 240.2 Japan 197.9 171.1 193.3 165.8 1Q 2Q 3Q 4Q 1Q 2Q FY March 2022 FY March 202
Slide 28: Net Sales by Product
NET SALES BY PRODUCT (Billion Yen) 1,025.3 957.9 55.7 62.0 85.2 803.4 68.0 Other 55.5 692.5 Parts 66.7 666.5 59.7 617.2 58.3 59.8 53.0 68.0 70.4 Vehicles/Parts 884.4 827.9 for Overseas Production 681.2 573.0 540.2 493.8 1Q 2Q 3Q 4Q 1Q 2Q FY March 2022 FY March 2023 M A Z DA M OTO R CO R P ORAT I ON
Slide 29: Breakdown of Change in Net Sales (6 Months)
BREAKDOWN OF CHANGE IN NET SALES (6 MONTHS) FY March 2023 1st Half vs. FY March 2022 1st Half (Billion Yen) 30% FY March 2023 1,642.5 FY March 2022 1,495.9 20% Domestic 0% Overseas -3% +13% +10% 10% 0% -3% -10% Total Volume & Mix Foreign Exchange M A Z DA M OTO R CO R P ORAT I ON 29
Slide 30: Breakdown of Change in Net Sales (3 Months)
BREAKDOWN OF CHANGE IN NET SALES (3 MONTHS) FY March 2023 2nd Quarter vs. FY March 2022 2nd Quarter (Billion Yen) 80% Domestic +5% FY March 2023 1,025.3 Overseas +28% FY March 2022 692.5 60% +48% 40% +32% 20% +16% 0% -20% Total Volume & Mix Foreign Exchange M A Z DA M OTO R CO R P ORAT I ON 30
Slide 31: Cash Flow and Net Cash
CASH FLOW AND NET CASH (Billion Yen) FY March 2022 FY March 2023 Change from Full Year 1st Half Prior FY End Cash Flow from Operating Activities 189.2 -0.6 - Cash Flow from Investing Activities -136.2 -50.0 - Free Cash Flow 52.9 -50.6 - Cash and Cash Equivalents 740.4 777.2 +36.8 Interest-bearing De
Slide 32: 2nd Quarter Global Sales and Consolidated Wholesales (3 Months)
FY MARCH 2023 2ND QUARTER GLOBAL SALES AND CONSOLIDATED WHOLESALES (3 MONTHS) (Thousand Units) FY March 2022 FY March 2023 Change Global Sales Volume 2nd Quarter 2nd Quarter 2nd Quarter Japan 32 43 +11 +34% North America 111 101 -10 -9% Europe 51 37 -14 -28% China 42 25 -17 -40% Other Markets 71 75
Slide 33: 2nd Quarter Financial Metrics (3 Months)
FY MARCH 2023 2NDQUARTER FINANCIAL METRICS (3 MONTHS) (Billion Yen) FY March 2022 FY March 2023 Change 2nd Quarter 2nd Quarter 2nd Quarter Net Sales 692.5 1,025.3 +332.8 +48% Operating Income 13.6 74.7 +61.1 +448% Ordinary Income 7.4 89.7 +82.3 - Profit before Tax 10.5 89.0 +78.5 +750% Net Income 12
Slide 34: Change in 2nd Quarter Operating Income
CHANGE IN FY MARCH 2023 2ND QUARTER OPERATING INCOME (vs. FY MARCH 2022 2ND QUARTER) (Billion Yen) ·Wholesale increase, etc. of approx. Foreign +¥28.0 billion Exchange Cost ·Ongoing fixed cost reduction and Improvement efficiency improvement ·Improvement in per-unit profit, +38.4 reduction in market
Slide 35: Full Year Global Sales Volume and Consolidated Wholesales
FY MARCH 2023 FULL YEAR GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Change from (Thousand Units) FY March 2023 Change from Prior Year May Forecast Global Sales Volume 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Full Year Japan 68 113 181 +8 +24 +33 +22% -10 North America 181 263 444
Slide 36: Exchange Rate
EXCHANGE RATE Change from (Yen) FY March 2022 FY March 2023 Change from Prior Year May Forecast Full Year 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Full Year US Dollar 112 134 138 136 +24 +23 +24 +13 Euro 131 139 139 139 +8 +9 +8 +6 Canadian Dollar 90 104 102 103 +16 +11 +13 +6 Austral
Slide 37: Key Data
KEY DATA (Billion Yen) Full Year 144.3 140.0 134.6 110.0 105.0 90.3 68.4 First Half 57.1 59.5 51.4 44.0 36.0 FY March 2022 2023 2022 2023 2022 2023 Capital Depreciation R&D Cost Expenditure Cost M A Z DA M OTO R CO R P ORAT I ON 37
Slide 38: Dividend Payment
DIVIDEND PAYMENT Dividends Per Share (Yen) Interim Dividends 40 Year-end Dividends 35 35 35 35 30 20 20 20 20 20 15 20 10 20 20 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 ratio of fi
Slide 39: 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
Slide 40: Slide 40