Mazda Motor Corp. · TSE:7261
Mazda Motor — Q1 FY2007 Earnings Presentation
31 slides from Mazda Motor's earnings presentation, Jul 31, 2007
Slide 1: FY2007 First Quarter Results
FY2007 FIRST QUARTER RESULTS MAZDA MOTOR CORPORATION July 31, 2007 1
Slide 2: Outline
OUTLINE Overview FY2007 1Q Results Key Marketing Initiatives Update In Summary 2
Slide 3: Overview
OVERVIEW 3
Slide 4: FY2007 1Q Highlights
FY2007 1Q HIGHLIGHTS Operating Profit Up 9% to ¥32.3 Billion Revenues Up 11% Expanded Investment for the Future Inventory Adjustment on Track Joint Venture Operation in China Commenced Engine Mass Production 4
Slide 5: FY2007 1Q Results
FY2007 1Q RESULTS 5
Slide 6: FY2007 1Q Financial Metrics
FY2007 1Q FINANCIAL METRICS (Billion yen) First Quarter Change FY2007 FY2006 Amount Pct. Revenues 814.3 734.3 80.0 11 % Operating Profit 32.3 29.6 2.7 9 % Ordinary Profit 21.2 24.0 (2.8) (12) % Profit Before Tax 19.4 22.9 (3.5) (15) % Net Income 2.5 6.6 (4.1) (62) % Operating ROS 4.0 % 4.0 % 0.0 Pts
Slide 7: Key Data
KEY DATA First Quarter FY2007 FY2006 Change Global Retail Volume (000) 323 325 (1) % (Excl Volum e Produced in Hainan) 323 309 4 % Exchange Rates Yen / U.S. Dollar 121 115 ¥ 6 Yen / Euro 163 144 ¥ 19 7
Slide 8: Domestic & Overseas Revenue Changes
DOMESTIC & OVERSEAS REVENUE CHANGES FY2007 1Q Compared With FY2006 1Q 19% 20% Vol. & Mix 4 % 15% 11% Exchange 7 % 10% 5% 0% Total Domestic Overseas (5)% (8)% (10)% (Billion yen) FY07 814.3 197.2 617.1 FY06 734.3 215.1 519.2 8
Slide 9: Japan
JAPAN First Quarter FY2007 FY2006 Change Retail Volume (000)* 57 61 (7) % Maintained Share Despite Fierce Market Environment * Excluding volume sold under Ford Brand 9
Slide 10: North America
NORTH AMERICA First Quarter Retail Volume (000) FY2007 FY2006 Change United States 74 73 0 % Canada & Other * 34 29 20 % North America Total 108 102 6 % Canada and Mexico Contributed to Volume Growth * Including Mexico and Puerto Rico 10
Slide 11: Europe
EUROPE First Quarter FY2007 FY2006 Change Retail Volume (000)* 78 77 0 % Sales Growth in Russia Offset Lower Sales in Germany * Including Turkey 11
Slide 12: China
CHINA First Quarter FY2007 FY2006 Change Retail Volume (000) 16 29 (44) % Excl. Volum e Produced in Hainan 16 13 26 % Sales of Mazda3 Increased 12
Slide 13: Other Markets
OTHER MARKETS First Quarter FY2007 FY2006 Change Retail Volume (000) 64 56 15 % CX-7, BT-50 and Mazda3 Contributed to Sales Increase 13
Slide 14: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 1Q Compared With FY2006 1Q (Billion yen) [Factors for Increase] - Higher volume in Canada and Other Markets 10 9.2 [Factors for Decrease] - Inventory reduction measures - Lower registration vehicle demand in Japan 5 2.7 5.1 0.2 0 (0.6) (5) (3.0) FY07 32.3 FY06 29.6 (1
Slide 15: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 1Q Compared With FY2006 1Q (Billion yen) US Dollar 1.4 10 9.2 Euro 5.1 Other 2.7 5.1 5 2.7 0.2 0 (0.6) (5) (3.0) FY07 32.3 FY06 29.6 (10) (8.2) Total Vol&Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 15
Slide 16: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 1Q Compared With FY2006 1Q (Billion yen) Product upgrades (1.6) Regulations (1.4) 10 9.2 Net of raw material price increase 5.1 5 2.7 0.2 0 (0.6) (5) (3.0) FY07 32.3 FY06 29.6 (10) (8.2) Total Vol&Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 16
Slide 17: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 1Q Compared With FY2006 1Q (Billion yen) Higher R&D cost and 10 9.2 Depreciation 5 2.7 5.1 0.2 0 (0.6) (5) (3.0) FY07 32.3 FY06 29.6 (10) (8.2) Total Vol&Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 17
Slide 18: Key Marketing Initiatives Update
KEY MARKETING INITIATIVES UPDATE 18
Slide 19: U.S. Dealer Inventory
U.S. DEALER INVENTORY (000 units) 90 85 82.2 80 75 70.9 70 65 60 Mar-07 Jun-07 U.S. Dealer Inventory Reduction is On Track. US Spec. 19
Slide 20: U.S. Crossover Monthly Volume
U.S. CROSSOVER MONTHLY VOLUME 6,000 5,380 5,000 4,544 1,875 4,000 1,231 3,000 2,000 3,313 3,505 1,000 0 Monthly Average FY06 4Q FY07 1Q CX-7 CX-9 U.S. CX-7/CX-9 Monthly Sales Volumes Have US Spec. Grown. 20
Slide 21: U.S. CX-9 Launch Actions
U.S. CX-9 LAUNCH ACTIONS Strong support is planned for FY07 to maintain a consistent presence and build awareness Mix adjusted to promote faster selling GT model. Launch plan is on track. US Spec. 21
Slide 22: Japan - New Demio Launch Status
JAPAN - NEW DEMIO LAUNCH STATUS Order pace exceeding expectations. Higher than planned mix of “Sport” and CVT models. Area-by-area program and display events planned to further promote awareness. US Spec. 22
Slide 23: Europe - New Mazda2 / CX-7 Launch Status
EUROPE - NEW MAZDA2 / CX-7 LAUNCH STATUS Mazda2 Sales start planned for September. Positive feedback from the press especially on downsizing & weight reduction concept, low emissions, crisp handling and design. CX-7 Sales start planned for August. Enquiries exceeding expectation; pre-orders in Russi
Slide 24: Status in Other Markets
STATUS IN OTHER MARKETS Australia Six consecutive month of record sales in June. CX-7 sales started from November ’06, contributing to growth. Two upcoming launches, Mazda2 in September, CX-9 in December will further support sales momentum. Israel Mazda is No. 1 Brand this year. Targeting 12th conse
Slide 25: In Summary
IN SUMMARY 25
Slide 26: In Summary
IN SUMMARY Operating Profit Up 9% to ¥32.3 Billion Revenues Up 11% Introduce New Demio in Japan, Europe and Other Markets Steadily Improve North America Business Dealer Inventory Optimization is On Track No Change in First Half and Full Year Projections 26
Slide 27: FY2007 Financial Metrics
FY2007 FINANCIAL METRICS FY2007 (Billion yen) 1st Half 2nd Half Full Year Revenues 1580.0 1740.0 3320.0 Operating Profit 60.0 100.0 160.0 Ordinary Profit 50.0 90.0 140.0 Profit Before Tax 45.0 85.0 130.0 Net Income 25.0 60.0 85.0 Operating ROS 3.8 % 5.7 % 4.8 % EPS (Yen/Share) 17.8 42.6 60.4 27
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Slide 29: Appendix
APPENDIX 29
Slide 30: Key Data
KEY DATA First Quarter FY2007 FY2006 Change Consol. Wholesales (000) Japan 57 65 (8) North America* 97 98 (1) Europe 68 62 6 Other Markets 58 47 11 Total 280 272 8 Global Retail Volume (000) Japan 57 61 (4) North America* 108 102 6 Europe 78 77 1 China 16 29 (13) Other Markets 64 56 8 Total 323 325
Slide 31: 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