Mazda Motor Corporation (7261) investor relations material

Executive summary

• Global sales volume for the first half was 609,000 units, down 3.3% year-over-year, with notable declines in Europe and China.

• Net sales reached ¥2,238.5 billion, down 6.5% year-over-year, with an operating loss of ¥53.9 billion and a net loss of ¥45.3 billion, mainly due to US tariffs, adverse FX, extra retirement expenses, and loss on valuation of credit assets.

• Second quarter operating loss was ¥7.8 billion, but would have been breakeven excluding delayed tariff reductions.

• Interim dividend set at ¥25 per share, with a full-year plan of ¥55 per share.

Financial highlights

• Net sales for the first half were ¥2,238.5 billion, down 6.5% year-over-year; operating income dropped from ¥103.0 billion to a loss of ¥53.9 billion.

• Net income fell from ¥35.3 billion to a loss of ¥45.3 billion; EPS decreased from ¥56.1 to -¥71.8.

• Operating return on sales dropped from 4.3% to -2.4%.

• Ordinary loss was ¥21.3 billion, compared to ordinary income of ¥83.5 billion last year.

• Cash and cash equivalents at the end of the first half were ¥1,053.3 billion, down ¥52.3 billion from the prior year-end.

Outlook and guidance

• Full-year forecast: global sales volume of 1.3 million units, net sales of ¥4.9 trillion, operating income of ¥50 billion, and net income of ¥20 billion.

• Full-year net sales forecast is down 2.4% year-over-year; operating income forecast down 73.1%; net income forecast down 82.5%.

• Second half expected to see a ¥150 billion improvement in operating income, returning to previous fiscal year levels.

• Full-year dividend forecast is ¥55 per share.