Mazda Motor Corp. · TSE:7261
Mazda Motor — H1 FY March 2014 Earnings Presentation
38 slides from Mazda Motor's earnings presentation, Oct 31, 2013
Slide 1: Fiscal Year March 2014 First Half Financial Results
FISCAL YEAR MARCH 2014 FIRST HALF FINANCIAL RESULTS New Mazda Axela (Overseas name: New Mazda3) Mazda Motor Corporation October 31, 2013 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights Fiscal Year March 2014 First Half Results Fiscal Year March 2014 Forecast Progress of Structural Reform Plan Summary 2
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: Highlights (1) – First Half Results
HIGHLIGHTS (1) – FIRST HALF RESULTS Achieved revenue growth and a substantial profit increase in all profit categories through sales expansion of vehicles equipped with SKYACTIV Revenue was ¥1,254.3 billion. Operating profit was ¥74 billion. Net income was ¥25 billion Global sales volume was 631,000
Slide 5: Highlights (2) – Full Year Forecast
HIGHLIGHTS (2) – FULL YEAR FORECAST Forecast global sales volume of 1,335,000 units Upward revision of full year forecast: operating profit of ¥160 billion and net income of ¥100 billion Introduce new Mazda3/Axela in major markets including Europe, Japan and Australia, following North America Steady
Slide 6: Fiscal Year March 2014 First Half Results
FISCAL YEAR MARCH 2014 FIRST HALF RESULTS 6
Slide 7: FY March 2014 Financial Metrics
FY MARCH 2014 FINANCIAL METRICS First Half Change from FY March FY March Prior Year April Plan (Billion yen) 2014 2013 Revenue 1,254.3 1,023.5 230.8 134.3 Operating profit 74.0 11.5 62.5 29.0 Ordinary profit 36.3 0.4 35.9 15.3 Profit before tax 33.9 7.3 26.6 16.9 Net income 25.0 5.7 19.3 15.0 Operat
Slide 8: Global Sales Volume
GLOBAL SALES VOLUME First Half Change from FY March FY March Prior April (000) 2014 2013 Year Plan Global sales volume Japan 111 110 1 5 North America 199 182 17 (5) Europe 97 85 12 4 China 79 90 (11) (3) Other Markets 145 146 (1) 3 Total 631 613 18 4 <Breakdown> USA 142 127 15 0 Australia 52 51 1 0
Slide 9: Global
GLOBAL Globally successful CX-5 and new Mazda6/Atenza have driven sales growth Improved net revenue by Sales Method Innovation that promotes products and brand New Mazda3/Axela to be introduced in the second half will further accelerate the business growth by SKYACTIV (000) First Half Sales Volume 6
Slide 10: Japan
JAPAN Sales were 111,000 units, up year on year despite 2% reduction of the total industry sales Share gained 0.1 point to 4.3% New Atenza SKYACTIV models have driven First Half Sales Volume (000) the sales 110 1% 111 - Added CX-5 2.5L model and 100 limited version - New Atenza also maintained stron
Slide 11: North America
NORTH AMERICA Sales were 199,000 units, up 9% year on year USA: 142,000 units, year-on- year growth of 12% surpassing the industry’s 9% increase, New Mazda3 (North American Model) with retail sales attaining 16% (000) First Half Sales Volume improvement 9% 199 - Continue to improve brand 200 182 val
Slide 12: Europe
EUROPE Sales were 97,000 units, up 14% year on year while the industry was down 2% CX-5 and new Mazda6, significantly grew their New Mazda6 (European Model) segment shares owing to CX-5 First Half Sales Volume availability improvement and (000) new Mazda6 full-scale launch 100 14% 97 85 Key markets,
Slide 13: China
CHINA Sales were 79,000 units Started sales of locally produced CX-5 and received orders for 10,000 units as of the end of September CX-5 (Chinese Model) Implemented mass-market (000) First Half Sales Volume advertising to communicate 100 90 SKYACTIV TECHNOLOGY on the 79 occasion of CX-5 launch (12)
Slide 14: Other Markets
OTHER MARKETS Sales were 145,000 units Australia: Remained strong with 52,000 units and 8.9% share - Mazda ranked 3rd in overall CX-5 (Australian Model) sales by brand First Half Sales Volume - CX-5 and Mazda2 achieved (000) highest sales in their 150 146 145 respective segments while (0)% Mazda3 at
Slide 15: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2014 First Half vs. FY March 2013 First Half Cost Improvement (Billion yen) Improvement Marketing (Deterioration) + 10.7 Expense Exchange 100 + 60.3 Other FY March (12.4) 2014 74.0 Effects of CX-5 and new Mazda6 (17.4) Investment for 50 the future Vol. & Mix + 21.3 F
Slide 16: Fiscal Year March 2014 Forecast
FISCAL YEAR MARCH 2014 FORECAST 16
Slide 17: FY March 2014 Financial Metrics
FY MARCH 2014 FINANCIAL METRICS FY March 2014 Change from First Second Full Prior April (Billion yen) Half Half Year Year Plan Revenue 1,254.3 1,395.7 2,650.0 444.7 170.0 Operating profit 74.0 86.0 160.0 106.1 40.0 Ordinary profit 36.3 86.7 123.0 89.9 26.0 Profit before tax 33.9 78.1 112.0 72.9 24.0
Slide 18: Global Sales Volume
GLOBAL SALES VOLUME FY March 2014 Change from First Second Full Prior April (000) Half Half Year Year Plan Global sales volume Japan 111 114 225 9 5 North America 199 216 415 43 0 Europe 97 103 200 28 0 China 79 121 200 25 0 Other Markets 145 150 295 (5) (5) Total 631 704 1,335 100 0 <Breakdown> USA
Slide 19: Operating Profit Change: Full Year vs. Full Year
OPERATING PROFIT CHANGE FY March 2014 Full Year vs. FY March 2013 Full Year Strengthen Improvement (Billion yen) Cost sales globally Improvement Marketing (Deterioration) + 15.7 Expense Exchange Sales increase + 90.0 Other and mix 200 improvement FY March (20.4) 2014 of SKYACTIV products 160.0 150 (
Slide 20: Operating Profit Change: Full Year vs. April Plan
OPERATING PROFIT CHANGE FY March 2014 Full Year vs. April Plan Improvement (Billion yen) (Deterioration) 200 Cost October Exchange Improvement Marketing Plan Expense Other + 34.0 + 0.0 160.0 April Vol. & Mix (2.1) 150 (4.0) Plan + 12.1 120.0 100 US Dollar +15.2 Euro +10.4 Other +8.4 50 Change from A
Slide 21: FY March 2014 Second Half Global Sales Initiatives
FY MARCH 2014 SECOND HALF GLOBAL SALES INITIATIVES Introduce our top-selling model, new Mazda3/Axela, in key markets and start full-scale sales Expand sales of locally produced CX-5 - Add a 2.5L model in China - Introduce Malaysia-produced CX-5 in Thailand Enhance advertising activities to improve b
Slide 22: Progress of Structural Reform Plan
PROGRESS OF STRUCTURAL REFORM PLAN 22
Slide 23: Business Innovation by SKYACTIV Technology – Sales Reinforcement
BUSINESS INNOVATION BY SKYACTIV TECHNOLOGY – SALES REINFORCEMENT Roll-out Brand Campaigns Further global penetration of brand value, such as “Be a driver” in Japan, “Game Changer” in North America Thoroughly implement inside-out activities Share among Mazda group members the design philosophy and pr
Slide 24: Reinforce Business in Emerging Countries and Establish Global Production Footprint
REINFORCE BUSINESS IN EMERGING COUNTRIES AND ESTABLISH GLOBAL PRODUCTION FOOTPRINT Progress on the new plant in Mexico - Completed plant construction. Progressing on track for production start in the fourth quarter - Decided to build a new engine machining factory - Plan to ship vehicles to North Am
Slide 25: Summary
SUMMARY <First Half Results> Sales, revenue and profits in all categories exceeded forecast at the beginning of the fiscal year SKYACTIV models including CX-5 and new Mazda6/Atenza continue global sales momentum <Full Year Forecast> Revised forecast upward: operating profit of ¥160 billion and net i
Slide 26: 26
26
Slide 27: Appendix
APPENDIX 27
Slide 28: Cash Flow and Net Debt
CASH FLOW AND NET DEBT FY March 2014 Change from First Second First Prior FY End (Billion yen) Quarter Quarter Half Cash Flow - From operating activities (7.1) 14.8 7.7 - - From investing activities (24.4) (24.8) (49.2) - - Free Cash Flow (31.5) (10.0) (41.5) - Cash and Cash Equivalents 399.7 394.2
Slide 29: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA (Billion yen) 670.1 638.4 615.9 600 113.2 97.9 106.7 506.6 516.9 511.7 121.6 100.3 126.4 Other 89.4 114.7 109.3 Europe 67.8 70.8 84.2 209.0 183.9 300 North 194.7 152.2 141.3 America 144.9 204.5 226.3 205.2 230.2 Japan 197.2 167.9 0 1Q 2Q 3Q 4Q 1Q 2Q FY March 2013 FY March
Slide 30: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 670.1 638.4 53.6 615.9 600 56.0 50.4 49.4 516.9 55.3 506.6 511.7 51.8 Other 55.0 48.7 48.5 47.6 45.2 Parts 46.5 300 566.1 Vehicle/ 514.7 527.1 Parts for 420.6 418.0 405.1 overseas production 0 1Q 2Q 3Q 4Q 1Q 2Q FY March 2013 FY March 2014 30
Slide 31: Revenue Change: First Half vs. First Half
REVENUE CHANGE FY March 2014 First Half vs. FY March 2013 First Half (Billion yen) 30% FY March 2014 1,254.3 FY March 2013 1,023.5 Japan 1% Overseas 6% 20% 23% 16% 10% 7% 0% Total Volume & Mix Exchange 31
Slide 32: Revenue Change: Second Quarter vs. Second Quarter
REVENUE CHANGE FY March 2014 Second Quarter vs. FY March 2013 Second Quarter (Billion yen) 30% FY March 2014 638.4 FY March 2013 516.9 Japan 2% Overseas 6% 24% 20% 16% 10% 8% 0% Total Volume & Mix Exchange 32
Slide 33: FY March 2014 Financial Metrics (Second Quarter)
FY MARCH 2014 FINANCIAL METRICS Second Quarter Change from (Billion yen) FY March 2014 FY March 2013 Prior Year Revenue 638.4 516.9 121.5 Operating profit 37.5 9.7 27.8 Ordinary profit 27.9 9.3 18.6 Profit before tax 25.7 17.0 8.7 Net income 19.5 12.2 7.3 Operating ROS 5.9 % 1.9 % 4.0 pts EPS (Yen)
Slide 34: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Second Quarter Change from (000) FY March 2014 FY March 2013 Prior Year Global Sales Volume Japan 61 59 2 North America 104 92 12 Europe 51 41 10 China 42 44 (2) Other Markets 72 77 (5) Total 330 313 17 Consolidated Wholesales Japan 62 61 1 North Ameri
Slide 35: Operating Profit Change: Second Quarter vs. Second Quarter
OPERATING PROFIT CHANGE FY March 2014 Second Quarter vs. FY March 2013 Second Quarter Cost Improvement Improvement Marketing (Billion yen) + 5.6 Expense (Deterioration) Exchange + 31.1 50 Other FY March (11.3) 2014 37.5 (10.7) Vol. & Mix 25 + 13.1 FY March 2013 9.7 0 Change from Prior Year + 27.8 35
Slide 36: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Change from FY March 2014 Change from Prior Year April Plan First Second Full First Second Full Full Year (000) Half Half Year Half Half Year Global Sales Volume Japan 111 114 225 1 8 9 5 North America 199 216 415 17 26 43 0 Europe 97 103 200 12 16 28
Slide 37: Key Data
KEY DATA (Billion yen) 140.0 100.0 100 Full 89.9 Year Full 77.2 Year Full Year 60.0 58.0 48.7 49.4 50 First 42.7 First Half Half 33.9 First 29.8 26.8 Half 0 (FY March) 2013 2014 2013 2014 2013 2014 Capital Depreciation R&D cost Spending 37
Slide 38: Disclaimer
DISCLAIMER The projections and future strategies shown in this presentation are based on various uncertainties including without limitation 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 Maz