Mazda Motor Corp. · TSE:7261
Mazda Motor — Q2 FY March 2025 Earnings Presentation
35 slides from Mazda Motor's earnings presentation, Nov 7, 2024
Slide 1: Fiscal Year March 2025 Second Quarter Financial Results
FISCAL YEAR MARCH 2025 SECOND QUARTER FINANCIAL RESULTS MAZDA CX-80 November 7, 2024 Mazda Motor Corporation M A Z DA M OTO R CO R P O RAT I O N
Slide 2: Presentation Outline
PRESENTATION OUTLINE ▪Summary of Financial Results & Outlook ▪Progress of Management Policy up to 2030 Note: Net income in this presentation indicates net income attributable to owners of the parent M A Z DA M OTO R CO R P O RAT I O N 2
Slide 3: Summary of FY March 2025 Results and Forecast
SUMMARY OF FY MARCH 2025 RESULTS AND FORECAST ▪ First Half Results Global sales volume: 630,000 units / Net sales: ¥2,393.9 billion Operating income: ¥103.0 billion / Net income: ¥35.3 billion Record sales in North America, but high industry incentives offset gains from volume and currency. As a res
Slide 4: First Half Results
FY MARCH 2025 FIRST HALF RESULTS M A Z DA M OTO R CO R P O RAT I O N 4
Slide 5: First Half Volume Results
FY MARCH 2025 FIRST HALF VOLUME RESULTS (Thousand Units) FY March 2024 FY March 2025 Change from Prior Year 1st Half 1st Half 1st Half Production Volume* 593 603 +10 +2% Global Sales Volume Japan 82 64 -18 -22% North America 251 304 +53 +21% Europe 90 89 -1 -1% China 45 34 -11 -24% Other Markets 148
Slide 6: First Half Financial Metrics
FY MARCH 2025 FIRST HALF FINANCIAL METRICS (Billion Yen) FY March 2024 FY March 2025 Change from Prior Year 1st Half 1st Half 1st Half Consolidated Wholesales 588 590 +2 0% (Thousand Units) Net Sales 2,317.3 2,393.9 +76.6 +3% Operating Income 129.6 103.0 -26.6 -20% Ordinary Income 179.2 83.5* -95.7
Slide 7: Difference in First Half Operating Income
DIFFERENCE IN FY MARCH 2025 FIRST HALF OPERATING INCOME (vs. FY MARCH 2024 FIRST HALF) Volume & Mix Sales (Billion Yen) +32.0 Incentives Foreign Exchange Raw Material, Cost Logistics Costs, etc. Improvement Fixed Costs, 129.6 +52.2 Other +8.2 103.0 -15.7 -19.1 -84.2 FY March Change from Prior Year -
Slide 8: Full Year Forecast
FY MARCH 2025 FULL YEAR FORECAST M A Z DA M OTO R CO R P O RAT I O N 8
Slide 9: Full Year Volume Forecast
FY MARCH 2025 FULL YEAR VOLUME FORECAST Change from (Thousand Units) FY March 2024 FY March 2025 Change from Prior Year August Forecast Full Year Full Year Full Year Full Year Global Sales Volume Japan 160 150 -10 -6% -30 North America 514 605 +91 +18% +5 Europe 180 183 +3 +2% 0 China 97 98 +1 +1% 0
Slide 10: 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 August Forecast Full Year Full Year Full Year Full Year Consolidated Wholesales 1,202 1,250 +48 +4% -50 (Thousand Units) Net Sales 4,827.7 5,000.0 +172.3 +4% -350.0 Operating Income
Slide 11: Difference in Operating Income (vs. August Forecast)
DIFFERENCE IN FY MARCH 2025 OPERATING INCOME (vs. AUGUST FORECAST) (Billion Yen) Volume & 270.0 Cost Mix Raw Material, Fixed Costs, Sales Improvement Other Foreign Logistics Costs, etc. Incentives Exchange 0 0 0 200.0 -45.4 -15.4 -9.2 August Change from August Forecast -70.0 November Forecast Foreca
Slide 12: Difference in Operating Income (vs. FY March 2024)
DIFFERENCE IN FY MARCH 2025 OPERATING INCOME (vs. FY MARCH 2024) (Billion Yen) Volume & Mix Sales Incentives +88.6 Foreign Raw Material, Cost Exchange 250.5 Logistics Costs, etc. Improvement Fixed Costs, +34.8 +25.0 Other 200.0 -117.4 -45.5 -36.0 FY March Change from Prior Year -50.5 FY March 2024 2
Slide 13: US Sales Incentive Investment
US SALES INCENTIVE INVESTMENT Through 2024, Mazda’s incentive trend is in line with that of Japanese peers. Repurchase loyalty, which is improving due to sales network reforms, is at a record high level with the support of heavy deployment of marketing investment in captive finance. US Incentive Tre
Slide 14: Sales Growth in the United States
SALES GROWTH IN THE UNITED STATES Mazda dealers in the US continue to be among the most optimistic in the industry, investing heavily in providing a customer experience comparable to premium brands, driving sales growth and profitability US dealer survey: “Mazda franchise value will increase over th
Slide 15: Progress of Management Policy up to 2030
PROGRESS OF MANAGEMENT POLICY UP TO 2030 M A Z DA M OTO R CO R P O RAT I O N 15
Slide 16: Progress of Management Policy up to 2030
PROGRESS OF MANAGEMENT POLICY UP TO 2030 PHASE1 2022-2024 Prepare for electrificat ion/CN Earn profits to fund growth ① A c h i e v e To p - l i n e g r o w t h u s i n g technolog y/ product assets like Large products and North America unique models ② Realize cost reductions in the whole supply cha
Slide 17: Achieve Top-Line Growth to Earn Funds for Future Investment
① ACHIEVE TOP-LINE GROWTH TO EARN FUNDS FOR FUTURE INVESTMENT ▪ Wholesale volumes, per-unit profit and ROS improved in Phase 1 (FY2022-24) ▪ Our projection for 3-year cumulative net income is ¥490 billion, an improvement of ¥130 billion in total from initial forecasts announced each year during Phas
Slide 18: Realize Cost Reduction Activities
② REALIZE COST REDUCTION ACTIVITIES ◼ Accelerate speed across the entire supply chain and reduce fixed costs ◼ Aim to reduce the complexity of the next generation CX-5 by approximately 60% compared to the current model Opt imize complexity ◼ Flatten the hierarchy of the supply chain to eliminate cos
Slide 19: Prepare Electrification Technologies and Batteries
③ PREPARE ELECTRIFICATION TECHNOLOGIES AND BATTERIES ▪ Reached an agreement on battery supply with Panasonic Energy Co., Panasonic Automotive Systems Co., and AESC Japan Co. with the aim of securing capacity for 2030 ▪ Decided to build a module-pack plant in Yamaguchi Prefecture for batteries purcha
Slide 20: Prepare Electrification Technologies and Batteries: Toyota, Mazda
③ PREPARE ELECTRIFICATION TECHNOLOGIES AND BATTERIES ▪ Enhancing our multi-solutions line-up based on consumer acceptance of EVs PHASE1 PHASE2 PHASE3 2022-2024 2025-2027 2028-2030 To y o t a Hybrid System Install onto CX-50 Mazda Application of technical elements to Large Products under study Hybrid
Slide 21: Prepare Electrification Technologies and Batteries
③ PREPARE ELECTRIFICATION TECHNOLOGIES AND BATTERIES ◼ Making smooth progress in the development of rotary engine emission compliance ◼ Currently developing the Skyactiv-Z engine, which will achieve more ideal combustion and enhance environmental and driving performance. Aiming for a market launch d
Slide 22: Summary
SUMMARY ▪ Despite downward revision of profit forecast this year due to changes in the business environment, Phase 1 initiatives remain on track ▪ Make stable dividend payments in accordance with the dividend policy - Interim dividend is ¥25/share - Annual dividend projection is ¥55/share 60 55 Divi
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Slide 24: Appendix
APPENDIX M A Z DA M OTO R CO R P O RAT I O N 24
Slide 25: Japan
JAPAN ▪ 64,000 units sold, down 22% year on year MAZDA CX-80 ▪ Sales declined due to the discontinuation of CX-8 production. Mazda CX-80 was introduced in October 2024 as fourth Large model ▪ Extensively upgraded Roadster saw strong sales ▪ Market share declined by 0.7 points year on year to First H
Slide 26: North America
NORTH AMERICA ▪ 304,000 units sold, up 21% year on year ▪ USA: MAZDA CX-90 - 213,000 units sold, up 16% year on year. Market share was 2.7%, up 0.4 points year on year - Record-high sales volume for the second quarter and record-high cumulative total achieved for the first half - The addition of a s
Slide 27: Europe
EUROPE ▪ 89,000 units sold, down 1% year on year MAZDA CX-80 ▪ Market share was 1.1% on par with the prior year ▪ Sales in key countries - Germany: 22,000 units, down 3% year on year - UK: 15,000 units, down 5% year on year ▪ Mazda CX-80, a new three-row crossover SUV, was First Half Sales Volume &
Slide 28: China
CHINA ▪ 34,000 units sold, down 24% year on year MAZDA EZ-6 ▪ Market share declined by 0.1 points year on year to 0.2% ▪ The share among internal combustion engine vehicles was maintained, but overall sales volume and market share declined as demand for new First Half Sales Volume & energy vehicles
Slide 29: Other Markets
OTHER MARKETS ▪ 139,000 units sold, down 7% year on year ▪ Australia: - 50,000 units sold, maintaining the same level as the previous year - CX-5, CX-3 and CX-60, in particular, saw year-on- year sales growth, offsetting the fall in sales due to the discontinued production of CX-9 and CX-8 MAZDA CX-
Slide 30: Cash Flow and Net Cash
CASH FLOW AND NET CASH (Billion Yen) FY March 2024 FY March 2025 Change from Full Year 1st Half Prior FY End Cash Flow from Operating Activities 418.9 50.7 - Cash Flow from Investing Activities -179.9 -38.1 - Free Cash Flow 239.0 12.6 - Cash and Cash Equivalents 919.3 1,003.8 +84.5 Interest-bearing
Slide 31: Second Quarter Volume Results
FY MARCH 2025 SECOND QUARTER VOLUME RESULTS (Thousand Units) FY March 2024 FY March 2025 Change from Prior Year 2nd Quarter 2nd Quarter 2nd Quarter Production Volume* 309 302 -7 -2% Global Sales Volume Japan 39 35 -4 -11% North America 123 158 +35 +28% Europe 46 39 -6 -14% China 26 16 -9 -36% Other
Slide 32: Second Quarter Financial Metrics
FY MARCH 2025 SECOND QUARTER FINANCIAL METRICS (Billion Yen) FY March 2024 FY March 2025 Change from Prior Year 2nd Quarter 2nd Quarter 2nd Quarter Consolidated Wholesales 302 299 -3 -1% (Thousand Units) Net Sales 1,226.3 1,188.3 -38.0 -3% Operating Income 99.6 52.6 -47.0 -47% Ordinary Income 115.3
Slide 33: Difference in Second Quarter Operating Income
DIFFERENCE IN FY MARCH 2025 SECOND QUARTER OPERATING INCOME (vs. FY MARCH 2024 SECOND QUARTER) Volume & Mix Sales (Billion Yen) +28.7 Incentives Foreign Cost 99.6 Raw Material, Exchange Logistics Costs, etc. Improvement Fixed Costs, +8.3 +4.4 Other -49.1 -7.9 52.6 -31.4 FY March FY March Change from
Slide 34: Exchange Rates (Average for the Term)
EXCHANGE RATES (AVERAGE FOR THE TERM) Change from (Yen) FY March 2025 Change from Prior Year August Forecast 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Full Year US Dollar 153 145 149 +12 -3 +4 -1 Euro 166 160 163 +13 0 +6 +1 Canadian Dollar 112 106 109 +7 -3 +2 0 Australian Dollar 101
Slide 35: 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