FISCAL YEAR MARCH 2022 SECOND QUARTER FINANCIAL …

FISCAL YEAR MARCH 2022SECOND QUARTER FINANCIAL RESULTS

2

Fiscal Year March 2022 First Half Results

Fiscal Year March 2022 Full Year Forecast

Progress of Medium-Term Management Plan

Presentation Outline

3

Fiscal Year March 2022

First Half Results

4

FY March 2022

1st 2nd 1st Prior Year FY March 2020

(Thousand units) Quarter Quarter Half 1st Half 1st Half

Global sales volume

Japan 28 32 60 -14 -19% -39 -39%

North America 138 111 249 +64 +35% +46 +23%

Europe 55 51 106 +25 +30% -30 -22%

China 47 42 89 -28 -24% -20 -18%

Other Markets 86 71 156 +35 +29% -28 -15%

Total 353 307 660 +82 +14% -70 -10%

USA 106 84 190 +54 +40% +53 +38%

Australia 33 23 56 +16 +40% +5 +10%

ASEAN 19 13 32 -3 -8% -24 -44%

Change from

% % %

FY March 2022 First Half Global Sales Volume

In response to production constraints caused by the semiconductor shortage, conducted efficient operations through lean inventory management, prioritizing supply to the U.S. and other markets with strong sales

5

1st 2nd 1st FY March 2020

(Billion Yen) Quarter Quarter Half 1st Half

Net sales 803.4 692.5 1,495.9 +380.1 +34% -210.7 -12%

Operating profit 26.1 13.6 39.7 +92.6 - +13.9 +54%

Ordinary profit 26.5 7.4 33.9 +87.2 - -0.1 0%

Profit before tax 25.4 10.5 35.9 +111.1 - +3.2 +10%

Net income 11.4 12.5 23.9 +116.9 - +7.3 +44%

Operating ROS 3.2 2.0 2.7 +7.4 +1.2

EPS (Yen) 18.1 19.8 37.9 +185.6 +11.5

Exchange rate (Yen)

US Dollar 110 110 110 +3 +1

Euro 132 130 131 +10 +9

(Thousand units)

261 220 481 +112 +31% -141 -23%Consolidated wholesales

FY March 2022 Change from

Prior Year

1st Half

pts pts% %%

FY March 2022 First Half Financial Metrics

*Net income indicates net income attributable to owners of the parent

Net sales declined vs FY March 2020 mainly due to wholesale reduction from production cut, but profit increased as we continued efforts to improve variable profit and fixed cost efficiency

6

-52.9

-20.5

+ 107.8

+ 24.7

-23.9

+ 4.5 39.7

Change from Prior Year +92.6

(Billion Yen)

Transferred to extraordinary loss in FY March 2021

Volume & Mix

Foreign Exchange Cost

Improvement Fixed cost, Other

· Increase in wholesales volume by +112,000 units

· Effects of curbed marketing expenses, improved per-unit profit, etc. by approx. +¥50 billion

Includes impact of hikes in raw material prices and semiconductor costs of approx. -¥40.0 billion

USDEURCADAUDGBPOther

-0.1+5.7+4.8+7.6+2.3+4.4

· Continued fixed cost reduction and efficiency improvement such as advertisement cost and overhead cost

FY March 2021

First Half

FY March 2022

First Half

FY March 2022 First Half Operating Profit Change （vs FY March 2021 First Half）

7

25.8

-70.0

-43.6

+ 20.8

+ 33.8

+ 19.0

+ 53.9 39.7

Change from FY March 2020 +13.9

Strengthening of Profit Structure

by +¥106.7 billion

Decrease in wholesales volume by -141,000 units

(Billion Yen)

FY March 2020

First Half

Volume

Raw Materials/Semi-

conductor Foreign Exchange

Sales Improvement

(Marketingexpenses, etc.)

Cost Improvement

Fixed cost, Other

FY March 2022

First Half

FY March 2022 First Half vs. FY March 2020 First Half (Deterioration and Improvement Factors)

Deterioration by -¥113.6 billion due to external

environment

• Despite the negative impact of reduced volume due to production cuts and hikes in the price of raw materials and the cost of semiconductors, profit increased through improvements in sales quality, costs improvement, and fixed costs efficiency improvement

8

Fiscal Year March 2022

Full Year Forecast

9

FY March 2022 Global Sales Volume

Change from

FY March 2022 Prior

Year FY March

2020 May

Forecast

(Thousand units) 1st Half 2nd Half Full Year Full Year Full Year Full Year

Global sales volume

Japan 60 109 168 -8 -34 -26

North America 249 189 438 +35 +41 +24

Europe 106 87 193 +15 -70 -31

China 89 131 220 -8 +8 -40

Other Markets 156 136 292 -9 -53 -24

Total 660 651 1,311 +24 -108 -98+2% -8% -7%

USA 190 142 332 +37 +57 +33

Australia 56 45 101 +9 +11 +7

ASEAN 32 38 70 -17 -33 -29

10

Change from 　

FY March 2022 Prior Year

FY March

2020

May

Forecast

(Billion Yen) 1st Half 2nd Half Full Year Full Year Full Year Full Year

Net sales 1,495.9 1,704.1 3,200.0 +317.9 -230.3 -200.0

Operating profit 39.7 25.3 65.0 +56.2 +21.4 0.0

Ordinary profit 33.9 27.1 61.0 +32.7 +7.9 +6.0

Profit before tax 35.9 23.1 59.0 +56.8 +9.7 +10.0

Net income 23.9 17.1 41.0 +72.7 +28.9 +6.0

Operating ROS 2.7 1.5 2.0 +1.7 +0.7 +0.1

EPS (Yen) 37.9 27.2 65.1 +115.4 +45.8 +9.5

Exchange rate (Yen)

US Dollar 110 112 111 +5 +2 +2

Euro 131 131 131 +7 +10 +2

(Thousand units)

Consolidated wholesales 481 550 1,030 +41 -202 -105

+4% -16% -9%

% ptspts pts% %

FY March 2022 Financial Metrics


11

8.8

-20.5

+112.5

-20.0

+39.9

-60.6

+4.9 65.0


-1.1+10.3+10.0+10.2

+5.6+4.9

FY March 2022 Full Year Operating Profit Change （vs FY March 2021 Full Year）

Business Risks

FY March 2021

· Increase in wholesales volume by +41,000 units

· Curbed marketing expenses, improved sales mix

· Investment for growth ex. US plant

· Continued fixed cost reduction/efficiency improvement

Includes impact of hikes in raw material prices and semiconductor costs of approx. -¥94.0 billion

(Billion Yen)

Transferred to extraordinary loss in FY March 2021

Volume & Mix


Improvement

Fixed cost, Other

Change from prior year +56.2

FY March 2022

12

65.0

-50.0

-20.0

-31.3

+6.4

+87.8 +4.2

+2.9 65.0

• The extent of deterioration due to external environment, such as reduced volume due to production cuts and hikes in the price of raw materials and the cost of semiconductors, will expand

• Promote efforts to strengthen profit structure such as sales quality improvements and fixed cost efficiency improvements

FY March 2022 Full Year vs. May ForecastDeterioration and Improvement Factors

November Forecast

Business Risks

May Forecast

(Billion Yen)

Volume

Raw Materials/Semi-

conductor

Foreign Exchange

Sales Improvement


Cost Improvement

Fixed cost, Other


by +¥94.9 billion

Deterioration by -¥101.3 billion

due to external environment

Change from May Forecast 0.0


13

43.6

-100.0

-20.0

-106.2

+30.6

+81.4

+54.4

+81.2 65.0

(Billion Yen)

FY March 2020

FY March 2022 Full Year vs. FY March 2020 Full YearDeterioration and Improvement Factors

FY March 2022

Business Risks

Volume

Raw Materials/Semi-

conductor

Foreign Exchange

Sales Improvement


Cost Improvement

Fixed cost, Other


by +¥217.0 billion


Deteriorationby -¥226.2 billion

due to external environment

• Compared with two years ago, steady progress was made in structural reforms, such as sales quality improvements and fixed cost efficiency improvements, against the negative profit impact of declined wholesales and rise in the price of raw material and the cost of semiconductors

Change from FY March 2020 +21.4

14

39.7

+46.4

-20.0

+3.0

-20.7

-23.1

25.3

· Increase in US plant launch cost, etc.

· Increase in wholesales volume by approx. +69,000 units

· Sales mix improvement, etc.

FY March 2022 Operating Profit 1st Half vs 2nd Half

Business Risks

(Billion Yen)

Volume & Mix

Foreign Exchange Raw Materials

/Semiconductor

Fixed cost, Other

FY March 2022

1st Half FY March 2022

2nd Half

• Operating profit for the second half includes rising raw materials prices and semiconductor costs, and increased expenses for the US plant, in addition to business risks related to an uncertain business environment, such as production cut risks

1st Half vs 2nd Half -14.4

15

7.018.8

6.5 11.3

-7.6

20.9

40.826.1

13.6

-45.3

FY March 2021 FY March 2022FY March 2020

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q

Break-even volume1 mil. units line(annualized)

(Billion yen)

Operating profit

Continue strengthening efforts to improve variable profit and fixed

costs efficiency

With progress in strengthening profit structure, break-even

volume remained below annualized volume of 1 million units

(wholesale basis)

Strengthening Profit Structure amid Reduced Production

16

Progress of Medium-Term Management Plan

17

FY March 2020

FY March 2022

Volume

ForeignExchange

Cost Improvement

Fixed Cost/ Others

Business Risks

RawMaterials/

Semiconductor

Sales Improvement


COVID-19 Pandemic &

Semiconductor Supply Shortage

Structural Reform &

Improvements

Structural Reform / Improvements

Impact of COVID Pandemic and Semiconductor

Supply Shortage

Outlook of This Fiscal Year

18

Progress of Medium-Term Management Plan … 5 Key Priorities

1. Investment to elevate brand value

• Monotsukuri ①Product and Technology Improvement

②Evolution of Monotsukuri Innovation

• Customer Experience ①US

②China

2. Curb expenses that depreciate brand value

3. Accelerate fixed cost/cost reduction to lower break-even volume

4. Investment in areas where we need to catch up and start investment in new areas

5. Enhance alliances (CASE, new partnership)

19

Building Block Concept = Establishing Technological Assets

Product and Technology Improvement（1）

SKYACTIV MULTI-SOLUTION ARCHITECTURE

PHASE 1

PHASE 2

SmallGroup

LargeGroup

SKYACTIV-X BEV

Straight 6 PHEV MHEV 48V

RE Multiple Electrification Technology

SKYACTIV-DRIVE/MT SKYACTIV-BODY/CHASSISSKYACTIV-G/D

SKYACTIV ARCHITECTURE dedicated to Internal Combustion Engines

20

EV-dedicated Architecture = Investment in Next Technology Assets

Product and Technology Improvement (2)

PHASE 3

PHASE 1

PHASE 2

SKYACTIV EV ARCHITECTURE

SmallGroup

LargeGroup

SKYACTIV-X BEV

Straight 6 PHEV MHEV 48V

RE Multiple Electrification Technology


SKYACTIV ARCHITECTURE dedicated to Internal Combustion Engines

21

Monotsukuri Innovation

＝ Co-creation of Efficiency in Development and Production

Evolution of Monotsukuri Innovation（1）

Efficient and flexible production to build multiple models on the same line

Production R&D

Flexible Production Concept

Common Architecture Concept

Bundled Product Planning

22

Evolution of Assets in the Production Process

= Implementation of DX

Vertical launch of body shop lines that utilize “Digital Twins”

Progress of Monotsukuri Innovation（2）

23

Accumulation of Production Process Assets

＝ AI/DX and Expansion of MBD

MBD

AI

DX

Evolution of Monotsukuri Innovation（3）

Production R&D

Flexible Production Concept

Common Architecture Concept

Bundled Product Planning

24

Broaden Crossover SUV Product Lineup

SUV Lineup Going Forward

25

Multi-solution Architecture = Source of Profit

PHASE 1

PHASE 2

PHASE 3

2025 2030

Large Group

Small Group

5 New SUV Models

2022

Importance of Multi-Solution

SKYACTIV EV ARCHITECTURE


SKYACTIV ARCHITECTURE dedicated to Internal Combustion Engine

26

Network Reform

Sales Finance

Marketing Transformation

Completed investmenton the foundation for growth

※Edited by Mazda based on JD Power’s CSI study results.

Bond with Customer

Relationship of trust with dealers

Progress on Customer Experience ・・・ USA（1）

27

Product Range Expansion: CX-50 CX-70 CX-90

Progress on Customer Experience ・・・ USA（2）

28

Consolidation of two Joint Ventures

= Foundation for Better Customer Experienceand Growth

MAZDA6 CX-5CX-30 CX-8CX-4MAZDA3 CX-30 EV

Changan Mazda Automobile

Co., Ltd.

FAW Mazda Motor Sales

Co., Ltd.

New Changan Mazda

Progress on Customer Experience ・・・ China

29

30

Appendix

31

FY March 2021 FY March 2022 Change from

(Billion Yen) Full Year First Half Prior FY End

Cash Flow

- From Operating activities

- From Investing activities

- Free Cash Flow

Cash and Cash Equivalents

Interest-bearing Debt

Net Cash

Total Assets

Equity

-78.9 --62.0

120.1 -37.0

738.8 +75.1813.9

41.2 --25.0

+1

-17.1 -28.8-45.9

42Equity Ratio 41

755.9 859.8 +103.9

2,876.3

1,204.0

2,917.4

1,181.7

-41.1

+22.3

①百万円単位で

pts%%

Cash Flow and Net Cash

32

74

60

3.6%

2.9%

FY March 2021 FY March 2022

-19%

Japan

First Half Sales Volume & Market Share

(Thousand units)

60,000 units sold, down 19% year on year

Total market share declined 0.7 points year on year to 2.9%, while registered vehicle market share decreased 1.1 points to 3.5%

Sales volume declined from the prior year due to vehicle supply shortage related to reduced production

Started new service to update diesel engine control program.Its strong and exhilarating acceleration has been well received

Started free web membership service called “Club Mazda”

33

136

190

49

59 185

249 2.0%

2.4%


+35%

North America

First Half Sales Volume & US Market Share

(Thousand units)

Canada

& Others

USA

249,000 units sold, up 35% year on year

USA: 190,000 units, up 40% year on year

- Achieved record high sales since 1995 in the first half. Market share increased 0.5 points year on year to 2.4%

- Prioritized production of profitable and hot-selling models, while efficient and high turnover ratio sales continued

- Reduced marketing expenses in accordance with market trends and supply status and improved per-unit profit

Canada: 37,000 units, up 23% year on year

Mexico: 20,000 units, up 11% year on year

34

71 93

11

13 82

106 1.1%

1.3%


+30%

Europe


(Thousand units)

Europe(Excl.

Russia)

Russia

106,000 units sold, up 30％ year on year

Market share increased 0.2 points year on year to 1.3%

Sales volume increased as market demand recovered from the prior year

Germany: 24,000 units sold, up 27% year on year

UK: 17,000 units sold, up 43％year on year

Russia: 13,000 units sold, up 23％ year on year

35

117

89

0.9%

0.7%


-24%

China


(Thousand units)

89,000 units sold, down 24％ year on year

Market share declined 0.1 point year on year to 0.7%

Sales of main models like CX-4 and CX-5 decreased year on year

Sales of the highest volume model Mazda3 remained strong

Sales of CX-30 EV, jointly developed with local partners, started in September

36

34 32

40 56

47

69 121

156

9.7%10.1%


+29%

Other Markets

156,000 units sold, up 29％ year on year

Australia: 56,000 units sold, up 40％ year on year

⁃ Market share rose 0.4 points year on year to 10.1%

⁃ Sales of crossover SUVs like CX-5/CX-8/CX-30 and BT-50 increased, achieving market share increase

ASEAN: 32,000 units sold, down 8％ year on year

⁃ July-September sales sharply dropped due to lockdown

⁃ Thailand: 15,000 units, down 6％year on year

⁃ Vietnam: 7,000 units, down 27％year on year

First Half Sales Volume & Australia Market Share

(Thousand units)

Others

Australia

ASEAN

37

137.9214.0 211.6

303.5

197.9 171.1

109.2

283.3 326.4

309.0

303.4277.3

69.6

123.5

151.3

145.7

153.5

126.9

60.0

118.3

154.4

164.4

148.6

117.2

376.7

739.1

843.7

922.6

803.4

692.5

1Q

FY March 2021

2Q 3Q 4Q

FY March 2022

1Q 2Q

Net Sales by Geographic Area

(Billion Yen)

Japan

NorthAmerica

Europe

Other

38

282.3

615.2

721.4789.4

681.2

573.043.4

58.9

61.4

65.3

66.7

59.8

51.0

65.0

60.9

67.9

55.5

59.7

376.7

739.1

843.7

922.6

803.4

692.5

1Q

FY March 2021

2Q 3Q 4Q

FY March 2022

1Q 2Q

(Billion Yen)

Vehicles / Parts for Overseas Production

Parts

Other

Net Sales by Product

39

+34%+30%

+4%

0%

50%

Total Volume & Mix Foreign Exchange

DomesticOverseas

0%+29%

Net Sales Change (6 Months)

FY March 2022 First Half vs. FY March 2021 First Half

FY March 2022 1,495.9FY March 2021 1,115.8

(Billion Yen)

40

-6%

-10%

+4%

-25%

0%

25%

Total Volume & Mix Foreign Exchange

DomesticOverseas

-5%-5%

Net Sales Change (3 Months)

FY March 2022 Second Quarter vs. FY March 2021 Second Quarter

FY March 2022 692.5FY March 2021 739.1

(Billion Yen)

41

Second Quarter Change from

FY March FY March

(Billion Yen) 2021 2022 Prior Year

Net sales 739.1 692.5 -46.6 -6%

Operating profit -7.6 13.6 +21.2 -

Ordinary profit -11.5 7.4 +18.9 -

Profit before tax -12.4 10.5 +22.9 -

Net income -26.3 12.5 +38.8 -

Operating ROS -1.0 2.0 +3.0

EPS (Yen) -41.8 19.8 +61.6

Exchange rate (Yen)

US Dollar 106 110 +4

Euro 124 130 +6

255 220 -35 -14%Consolidated wholesales

(Thousand units)

pts% %

FY March 2022 Financial Metrics (3 Months)


42

-7.6

+ 12.6

+ 10.8

-16.4

+ 14.2 13.6

Change from prior year +21.2

Volume & Mix


Improvement

Continued fixed cost reduction/efficiency improvement

FY March 2022 Second Quarter Operating Profit Change(vs FY March 2021 Second Quarter）

FY March 2021

Fixed cost, Other

(Billion Yen)

FY March 2022

Impact of hikes in raw material prices and semiconductor costs

· Decrease in wholesales volume by -35,000 units

· Curbed marketing expenses, improved sales mix


-0.1+3.0+2.4+1.7+1.5+2.3

43

FY March 2022 Consolidated Wholesales

FY March 2022

May

Forecast

(Thousand units)

1st

Quarter 　2nd

Quarter 　1st

Half 　2nd

Half 　Full

Year 1st

Half 2nd

Half Full

Year

Full

Year

Consolidated wholesales

Japan 38 31 69 93 162 -4 0 -4 -23

North America 101 88 190 209 399 +48 -23 +25 -12

Europe 50 41 90 83 173 +24 -23 +1 -48

Other Markets 72 60 132 165 296 +44 -26 +18 -22

Total 261 220 481 550 1,030 +112 -72 +41 -105+31% -12% +4% -9%

USA 77 72 149 154 303 +42 -11 +31 +3

Prior Year

Change from

*Regarding consolidated wholesales, in accordance with the application of the “Accounting Standard for Revenue Recognition”, etc. effective from the beginning of the first quarter of FY March 2022, domestic dealers’ sales recognition of new car has been changed to one that recognizes revenue at the time of the delivery to customers.

44

Change from

FY March 2022 　 Prior Year　

May

Forecast

(Yen)

1st

Half

2nd

Half

Full

Year

1st

Half

2nd

Half

Full

Year

Full

Year

US Dollar 110 112 111 +3 +7 +5 +2

Euro 131 131 131 +10 +5 +7 +2

Canadian Dollar 88 89 89 +10 +7 +8 +3

Australian Dollar 83 82 82 +9 +3 +6 -2

British Pound 152 153 153 +17 +11 +14 +2

Exchange Rates

45

36.1

57.1

45.1 44.0

62.7 68.4

93.0

150.0

89.8 93.0

127.4 136.0

2021 2022

1H

Full Year

2021 2022 2021 2022

Key Data

(Billion Yen)

Capital Expenditure

Depreciation Cost

R&D Cost

FY March

46

Dividend Payment

15 15 15 15 1510

1520 20 20 20

151

10

30

35 35 35 35

0

15

2014 2015 2016 2017 2018 2019 2020 2021 2022

Trend of dividends per share

Interim dividends

Year-end dividends

PlanResults up to now

Note) A share consolidation was implemented on common stock with a ratio of five shares to one on August 1, 2014.Dividends per share represent actual amounts applicable to the respective years

FY March

47

Improvement of Variable Marketing Costs

Residual value improvement and

trade cycle reinforcement

Network reform and margin policy

Thorough dealer training

Lean inventory management CY18 CY19 CY20 CY21

Residual Value (%)

USA

Canada

Variable Marketing Cost per Revenue (%: Average of All Models)

FY18 FY19 FY20 FY21

Japan

FY18 FY19 FY20 FY21

USA

FY18 FY19 FY20 FY21

Europe

FY18 FY19 FY20 FY21

Australia

48

Reduction of Fixed Marketing Costs

Accelerating personal communication methods and digitization

Improving royalty through trade cycle management

FY18 FY19 FY20 FY21

通期

Japan

FY18 FY19 FY20 FY21

通期

USA

FY18 FY19 FY20 FY21

通期

Europe

FY18 FY19 FY20 FY21

通期

Australia

Fixed Marketing Cost per Revenue (%: Average of all models)

FY21 FY21 FY21 FY21

49

Improvement of Per-unit Revenue

Improvement of sales mix of crossover models and high grade models

Gradual price increase for individual carlines

2.2

2.4

2.5

2.7

2.8

3.0

3.2

FY18 FY19 FY20 FY21

通期

Japan

24

26

28

30

32

34

36

FY18 FY19 FY20 FY21

通期

USA

18

20

22

24

26

28

30

32

FY18 FY19 FY20 FY21

通期

Europe

24

26

28

30

32

34

36

FY18 FY19 FY20 FY21

通期

Australia(mil Yen) (K USD) (K EUR) (K AUD)

Revenue per Unit

FY21 FY21 FY21 FY21

50

Improvement of Inventory Turnover

Visualizing production, sales and inventory

Appropriately allocating vehicles according to dealer stock status in the US

FY18末 FY19末 FY20末 FY21 上期末

USA

ポート在庫台数ディーラー在庫台数

FY18末 FY19末 FY20末 FY21 上期末

Australia

ポート在庫台数ディーラー在庫台数

Port / Dealer Stock

Port Stock Dealer Stock Port Stock Dealer Stock

FY18 End

FY19 End

FY20 End 1st Half End

FY21 FY18 End

FY19 End

FY20 End 1st Half End

FY21

51

The projections and future strategies shown in this presentation are based on various uncertainties including, but not limited to, the conditions of the world economy in the future, the trend of the automotive industry and the risk of exchange-rate fluctuations. So, please be aware that Mazda's actual performance may differ substantially from the projections.

If you are interested in investing in Mazda, you are requested to make a final investment decision at your own risk, taking the foregoing into consideration.Please note that neither Mazda nor any third party providing information shall be responsible for any damage you may suffer due to investment in Mazda based on the information shown in this presentation.

Disclaimer

FISCAL YEAR MARCH 2022 SECOND QUARTER FINANCIAL …

Documents