In a victory of sorts over COVID19, Mazda Motor Corporation today revised upwards its consolidated financial forecast for the Fiscal Year Ending 31 March 2021 (April 1, 2020 through March 31, 2021) that was released on November 9, 2020.
“Based on the situation of a steady progress of improvement in marketing expense and carline mix as well as fixed cost reduction, we revised the full-year forecast for the Fiscal Year ending March 31, 2021,” Mazda said. Nevertheless Mazda is still losing money and is in a perilous, company-threatening position with huge soaring debt and ongoing breathtaking operating losses. (See chart on second page.)
The Global retail volume forecast is 1,300 thousand units, which has not been revised from the previous forecast, released on November 9, 2020. However, considering current conditions and future estimates, we have revised market breakdown of global retail volume forecast. The exchange rate assumptions for the Full Year Forecast are 105 yen to the dollar and 123 yen to the Euro.
Financial performance on a consolidated basis for the first nine months of the fiscal year ending March 31, 2021 was: Net sales amounted to ¥1,959.5 billion, a decrease of ¥596.8 billion or 23.3% compared to the same period in the previous fiscal year. Operating loss amounted to ¥32.0 billion. (For the first nine months of the previous fiscal year, operating income was ¥32.3 billion.) Ordinary loss amounted to ¥31.2 billion. (For the first nine months of the previous fiscal year, ordinary income was ¥50.1 billion.) Net loss attributable to owners of the parent amounted to ¥78.2 billion, with the posting of a ¥20.5 billion extraordinary loss of fixed cost during production suspension due to the impact of the novel coronavirus. (For the first nine months of the previous fiscal year, net income attributable to owners of the parent was ¥32.4 billion.)
Operating loss changes (a decrease of ¥64.3 billion compared to the corresponding period in the previous fiscal year) were:
As of December 31, 2020, total assets increased ¥150.0 billion from the end of the previous fiscal year, to ¥2,937.6 billion. Total liabilities increased ¥255.0 billion from the end of the previous fiscal year to ¥1,836.8 billion. Interest-bearing debt as of December 31, 2020 increased ¥299.1 billion from the end of previous fiscal year to ¥918.9 billion mainly due to the increase in long-term loans.
Net Assets as of December 31, 2020 decreased ¥105.1 billion from the end of the previous fiscal year to ¥1,100.8 billion, reflecting net loss attributable to owners of the parent of ¥78.2 billion and the cash dividends of ¥12.6 billion. Equity ratio decreased 5.1 percentage points from the end of the previous fiscal year to 37.0 % (Percentage after consideration of the equity credit attributes of the subordinated loan was 38.2 %).
Cash and cash equivalent as of December 31, 2020 increased ¥177.6 billion from the end of the previous fiscal year to ¥745.6 billion. Interest-bearing debt as of December 31, 2020 increased ¥299.1 billion from the end of previous fiscal year to ¥918.9 billion. As a result, after subtracting cash and cash equivalents from the interest-bearing debt, net interest-bearing debt amounted to ¥173.4 billion.
Cash flows for the first nine months of the fiscal year ending March 31, 2021 were:
Net cash used in operating activities was ¥36.4 billion, reflecting loss before income taxes of ¥54.5 billion, decrease in trade notes and accounts receivable, etc. (For the first nine months of the previous fiscal year, net cash used in operating activities was ¥34.7 billion.)
Net cash used in investing activities was ¥59.5 billion, mainly reflecting capital expenditure for the acquisition of property, plant and equipment of ¥51.7 billion. (For the first nine months of the previous fiscal year, net cash used in investing activities was ¥104.6 billion.)
As a result, consolidated free cash flow (net of operating and investing activities) was negative ¥95.9 billion. (For the first nine months of the previous fiscal year, consolidated free cash flow was negative ¥139.3 billion.)
Net cash provided by financing activities was ¥264.3 billion, mainly reflecting the procurement of funds for capital risk due to the impact of the novel coronavirus. (For the first nine months of the previous fiscal year, net cash provided by financing activities was ¥6.0 billion.)
Mazda Increases Forecast for Fiscal Year Ending March 31
In a victory of sorts over COVID19, Mazda Motor Corporation today revised upwards its consolidated financial forecast for the Fiscal Year Ending 31 March 2021 (April 1, 2020 through March 31, 2021) that was released on November 9, 2020.
“Based on the situation of a steady progress of improvement in marketing expense and carline mix as well as fixed cost reduction, we revised the full-year forecast for the Fiscal Year ending March 31, 2021,” Mazda said. Nevertheless Mazda is still losing money and is in a perilous, company-threatening position with huge soaring debt and ongoing breathtaking operating losses. (See chart on second page.)
Financial performance on a consolidated basis for the first nine months of the fiscal year ending March 31, 2021 was: Net sales amounted to ¥1,959.5 billion, a decrease of ¥596.8 billion or 23.3% compared to the same period in the previous fiscal year. Operating loss amounted to ¥32.0 billion. (For the first nine months of the previous fiscal year, operating income was ¥32.3 billion.) Ordinary loss amounted to ¥31.2 billion. (For the first nine months of the previous fiscal year, ordinary income was ¥50.1 billion.) Net loss attributable to owners of the parent amounted to ¥78.2 billion, with the posting of a ¥20.5 billion extraordinary loss of fixed cost during production suspension due to the impact of the novel coronavirus. (For the first nine months of the previous fiscal year, net income attributable to owners of the parent was ¥32.4 billion.)
Operating loss changes (a decrease of ¥64.3 billion compared to the corresponding period in the previous fiscal year) were:
As of December 31, 2020, total assets increased ¥150.0 billion from the end of the previous fiscal year, to ¥2,937.6 billion. Total liabilities increased ¥255.0 billion from the end of the previous fiscal year to ¥1,836.8 billion. Interest-bearing debt as of December 31, 2020 increased ¥299.1 billion from the end of previous fiscal year to ¥918.9 billion mainly due to the increase in long-term loans.
Net Assets as of December 31, 2020 decreased ¥105.1 billion from the end of the previous fiscal year to ¥1,100.8 billion, reflecting net loss attributable to owners of the parent of ¥78.2 billion and the cash dividends of ¥12.6 billion. Equity ratio decreased 5.1 percentage points from the end of the previous fiscal year to 37.0 % (Percentage after consideration of the equity credit attributes of the subordinated loan was 38.2 %).
Cash and cash equivalent as of December 31, 2020 increased ¥177.6 billion from the end of the previous fiscal year to ¥745.6 billion. Interest-bearing debt as of December 31, 2020 increased ¥299.1 billion from the end of previous fiscal year to ¥918.9 billion. As a result, after subtracting cash and cash equivalents from the interest-bearing debt, net interest-bearing debt amounted to ¥173.4 billion.
Cash flows for the first nine months of the fiscal year ending March 31, 2021 were:
Net cash used in operating activities was ¥36.4 billion, reflecting loss before income taxes of ¥54.5 billion, decrease in trade notes and accounts receivable, etc. (For the first nine months of the previous fiscal year, net cash used in operating activities was ¥34.7 billion.)
Net cash used in investing activities was ¥59.5 billion, mainly reflecting capital expenditure for the acquisition of property, plant and equipment of ¥51.7 billion. (For the first nine months of the previous fiscal year, net cash used in investing activities was ¥104.6 billion.)
As a result, consolidated free cash flow (net of operating and investing activities) was negative ¥95.9 billion. (For the first nine months of the previous fiscal year, consolidated free cash flow was negative ¥139.3 billion.)
Net cash provided by financing activities was ¥264.3 billion, mainly reflecting the procurement of funds for capital risk due to the impact of the novel coronavirus. (For the first nine months of the previous fiscal year, net cash provided by financing activities was ¥6.0 billion.)