Mazda Motor Corp. · TSE:7261
Mazda Motor — H1 FY2005 Earnings Presentation
43 slides from Mazda Motor's earnings presentation, Nov 2, 2005
Slide 1: Mazda Motor Corporation FY2005 First Half Results, Full Year Projections
MAZDA MOTOR CORPORATION FY2005 FIRST HALF RESULTS FULL YEAR PROJECTIONS November 2, 2005 1 FY2005 First Half Results & Full Year Projections
Slide 2: Presentation Outline
PRESENTATION OUTLINE Overview FY2005 First Half Results FY2005 Full Year Projections European Operations Close 2 FY2005 First Half Results & Full Year Projections
Slide 3: Overview
OVERVIEW 3 FY2005 First Half Results & Full Year Projections
Slide 4: FY2005 First Half Highlights
FY2005 FIRST HALF HIGHLIGHTS Operating Profit Up 12% to ¥48.8 Billion Wholesales up 5% Introduction of New Mazda5 and MX-5/Roadster Net Income Up 66% to ¥31.1 Billion 4 FY2005 First Half Results & Full Year Projections
Slide 5: FY2005 Full Year Outlook
FY2005 FULL YEAR OUTLOOK Continue Sales & Profit Growth Under Mazda Momentum Launch of New MPV and Mazdaspeed6 Raw Material Price Escalation Remains a Significant Challenge Operating Profit Up 15% to ¥95 Billion 5 FY2005 First Half Results & Full Year Projections
Slide 6: FY2005 First Half Results
FY2005 FIRST HALF RESULTS 6 FY2005 First Half Results & Full Year Projections
Slide 7: FY2005 First Half Financial Metrics
FY2005 FIRST HALF FINANCIAL METRICS (Billion yen) First Half Change FY2005 FY2004 Amount Pct. Operating Profit 48.8 43.5 5.3 12 % Ordinary Profit 43.4 36.9 6.5 17 % Profit Before Tax 63.2 33.5 29.7 88 % Net Income 31.1 18.7 12.4 66 % Operating ROS 3.6% 3.3% 0.3 Pts - EPS (Yen/Share) 25.1 15.4 9.7 63
Slide 8: FY2005 First Half Extraordinary Items
FY2005 FIRST HALF EXTRAORDINARY ITEMS FY2005 (Billion yen) First Half Ordinary Profit 43.4 Extraordinary Items Pension Fund Return Gain 57.1 Asset-Impairment Loss (34.7) Disposal Losses (2.6) Net Extraordinary Gain 19.8 Profit Before Tax 63.2 8 FY2005 First Half Results & Full Year Projections
Slide 9: Cash Flow & Net Debt
CASH FLOW & NET DEBT FY2005 FY2004 B/(W) Prior (Billion yen) First Half Full Year Year End Cash Flow 12.5 35.9 - Net Debt 293.4 313.5 20.1 Net Debt-to-Equity 88% 117% 29 Pts Capital Spending 39.0 67.9 - 9 FY2005 First Half Results & Full Year Projections
Slide 10: Key Data
KEY DATA First Half FY2005 FY2004 Change WHOLESALES (000) Consolidated 557 530 5 % REVENUE (¥Bils) 1,351.9 1,320.6 2 % EXCHANGE RATES Yen / U.S. Dollar 110 110 ¥ 0 Yen / Euro 136 133 ¥ 3 10 FY2005 First Half Results & Full Year Projections
Slide 11: Revenue Changes by Destination
REVENUE CHANGES BY DESTINATION FY2005 First Half Compared with FY2004 First Half 6% 5% 5% Vol. & Mix 1 % Exchange 1 % 4% 3% 2% 2% 1% 1% 0% (Billion yen) Total Domestic Overseas FY05 1st Half 1,351.9 432.0 919.9 FY04 1st Half 1,320.6 411.5 909.1 11 FY2005 First Half Results & Full Year Projections
Slide 12: Japan
JAPAN First Half FY2005 FY2004 Change Retail Volume (000) 141 135 4 % Market Share 5.0 % 5.0 % 0.0 Pts New Premacy and New Roadster 12 FY2005 First Half Results & Full Year Projections
Slide 13: United States
UNITED STATES First Half FY2005 FY2004 Change Retail Volume (000) 138 140 (1) % Market Share 1.5 % 1.6 % (0.1) Pts New Mazda5 and New MX-5 Miata 13 FY2005 First Half Results & Full Year Projections
Slide 14: Europe
EUROPE First Half FY2005 FY2004 Change Retail Volume (000) 138 143 (3) % Market Share 1.5 % 1.6 % (0.1) Pts Successful Introduction of Mazda5 14 FY2005 First Half Results & Full Year Projections
Slide 15: China
CHINA First Half FY2005 FY2004 Change Retail Volume (000) 67 44 52 % Market Share 2.3 % 1.8 % 0.5 Pts Continued Sales Growth 15 FY2005 First Half Results & Full Year Projections
Slide 16: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 First Half Compared with FY2004 First Half Billion yen 20 16.9 Wholesales Wholesales up up 5% 5% 10 5.3 4.1 2.4 0 (2.1) (3.3) FY05 48.8 (10) FY04 43.5 (12.7) (20) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 16 FY2005 First Half Results & Full
Slide 17: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 First Half Compared with FY2004 First Half Billion yen 20 US US Dollar Dollar 00 16.9 Euro Euro 2.2 2.2 Other Other 1.9 1.9 10 5.3 4.1 2.4 0 (2.1) (3.3) FY05 48.8 (10) FY04 43.5 (12.7) (20) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 17 FY200
Slide 18: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 First Half Compared with FY2004 First Half Billion yen Cost Cost 20 16.9 Reductions Reductions Product Product Upgrades Upgrades incl. incl. Net Net of of Raw Raw New New Features. Features. Material Material Price Price 10 Increases Increases 5.3 4.1 2.4 0 (2.1) (3.3
Slide 19: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 First Half Compared with FY2004 First Half Billion yen 20 16.9 Higher Higher Depreciation Depreciation 10 5.3 4.1 2.4 0 (2.1) (3.3) FY05 48.8 (10) FY04 43.5 (12.7) (20) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 19 FY2005 First Half Results
Slide 20: FY2005 Full Year Projections
FY2005 FULL YEAR PROJECTIONS 20 FY2005 First Half Results & Full Year Projections
Slide 21: Financial Metrics
FINANCIAL METRICS (Billion yen) Full Year Change FY2005 FY2004 Amount Pct. Operating Profit 95.0 82.9 12.1 15 % Ordinary Profit 85.0 73.1 11.9 16 % Profit Before Tax 96.0 73.8 22.2 30 % Net Income 55.0 45.8 9.2 20 % Operating ROS 3.4% 3.1% 0.3 Pts - EPS (Yen/Share) 41.7 37.6 4.1 11 % 21 FY2005 First
Slide 22: Key Assumption
KEY ASSUMPTION Full Year FY2005 FY2004 Change WHOLESALES (000) Consolidated 1,170 1,104 6 % REVENUE (¥Bils) 2,820.0 2,695.6 5 % EXCHANGE RATES Yen / U.S. Dollar 109 108 ¥ 1 Yen / Euro 135 135 ¥ 0 22 FY2005 First Half Results & Full Year Projections
Slide 23: Revenue Changes by Destination
REVENUE CHANGES BY DESTINATION FY2005 Compared with FY2004 Vol. & Mix 4% Exchange 1% 6% 5% 5% 5% 4% 4% 3% 2% 1% 0% (Billion yen) Total Domestic Overseas FY05 2,820.0 890.0 1,930.0 FY04 2,695.6 845.6 1,850.0 23 FY2005 First Half Results & Full Year Projections
Slide 24: Japan
JAPAN FY2005 FY2004 Change Retail Volume (000) 293 286 2 % Market Share 4.9 % 4.9 % 0.0 Pts New Premacy, New Roadster and New MPV *US Spec 24 FY2005 First Half Results & Full Year Projections
Slide 25: United States
UNITED STATES FY2005 FY2004 Change Retail Volume (000) 268 264 2 % Market Share 1.6 % 1.6 % 0.0 Pts New Mazda5, New MX-5 Miata and Mazdaspeed6 25 FY2005 First Half Results & Full Year Projections
Slide 26: Europe
EUROPE FY2005 FY2004 Change Retail Volume (000) 290 273 6 % Market Share 1.6 % 1.5 % 0.1 Pts New Mazda5 and New MX-5 26 FY2005 First Half Results & Full Year Projections
Slide 27: China
CHINA FY2005 FY2004 Change Retail Volume (000) 125 96 30 % Market Share 2.1 % 1.9 % 0.2 Pts Build Mazda Brand 27 FY2005 First Half Results & Full Year Projections
Slide 28: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 Compared with FY2004 Billion yen Wholesales Wholesales 30 up up 6% 6% with with 27.8 20.4 New New Products Products 20 12.1 10 4.5 0 (10) (4.0) FY05 95.0 (9.2) FY04 82.9 (20) (30) (27.4) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 28 FY2005 F
Slide 29: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 Compared with FY2004 Billion yen US$ US$ 1.6 1.6 27.8 30 Euro 0.1 Euro 0.1 20.4 Other 2.8 Other 2.8 20 12.1 10 4.5 0 (10) (4.0) FY05 95.0 (9.2) FY04 82.9 (20) (30) (27.4) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 29 FY2005 First Half Result
Slide 30: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 Compared with FY2004 Billion yen 30 27.8 20.4 Product Product Upgrades Upgrades Cost Cost Reductions Reductions 20 incl. incl. New New Features Features Net Net of of Raw Raw 12.1 Material Material Price Price 10 4.5 Increases Increases 0 (10) (4.0) FY05 95.0 (9.2) FY
Slide 31: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 Compared with FY2004 Billion yen 30 27.8 20.4 R&D R&D Spend Spend and and 20 Depreciation Depreciation 12.1 10 4.5 0 (10) (4.0) FY05 95.0 (9.2) FY04 82.9 (20) (30) (27.4) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 31 FY2005 First Half Result
Slide 32: European Operations
EUROPEAN OPERATIONS 32 FY2005 First Half Results & Full Year Projections
Slide 33: Sustained Momentum
SUSTAINED MOMENTUM Continuing Improvements in Distribution Successful New Products Brand Momentum Continuing Focus On Profitable Growth 33 FY2005 First Half Results & Full Year Projections
Slide 34: Distribution
DISTRIBUTION * * = Mazda Distributor = From 2006 * = Independent Distributor 34 FY2005 First Half Results & Full Year Projections
Slide 35: Successful New Products
SUCCESSFUL NEW PRODUCTS Mazda MX-5 “Mazda unveils the successor to its legendary Roadster…and it’s a corker.” – Financial Mail (UK) “It might be hard to improve perfection but Mazda has done it better than anyone else” – Daily Telegraph (UK) Mazda5 “Two sliding doors and an innovative interior conce
Slide 36: Brand Momentum
BRAND MOMENTUM 36 FY2005 First Half Results & Full Year Projections
Slide 37: Retail Sales
RETAIL SALES (000 units) 300 290 273 250 250 195 200 159 150 100 '01 '02 '03 '04 '05 37 FY2005 First Half Results & Full Year Projections
Slide 38: Second Half Volume Opportunities
SECOND HALF VOLUME OPPORTUNITIES Introduction of New MX-5 and Mazda6 MPS New Mazda5 and Mazda6 Diesel Models Market Expansion in Russia 38 FY2005 First Half Results & Full Year Projections
Slide 39: Continuing Profitable Growth
CONTINUING PROFITABLE GROWTH Continued Focus On Profitable Retail Sales Growth Country and Model Mix Opportunities Strong Residual Values Strong Brand Momentum 39 FY2005 First Half Results & Full Year Projections
Slide 40: Close
CLOSE 40 FY2005 First Half Results & Full Year Projections
Slide 41: In Sum
IN SUM First Half Operating Profit Up 12% Raw Material Price Escalation Remains a Significant Challenge Full Year Operating Profit Up 15% to ¥95.0 Billion Continue Progress and Foundation Building Under Mazda Momentum 41 FY2005 First Half Results & Full Year Projections
Slide 42: 42 FY2005 First Half Results & Full Year Projections
42 FY2005 First Half Results & Full Year Projections
Slide 43: Disclaimer
DISCLAIMER The projections for FY 2005 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 aw