Mazda Motor Corp. · TSE:7261
Mazda Motor — FY March 2013 Earnings Presentation
43 slides from Mazda Motor's earnings presentation, Apr 26, 2013
Slide 1: Fiscal Year March 2013 Financial Results
FISCAL YEAR MARCH 2013 FINANCIAL RESULTS New Mazda6 (North American model) Mazda Motor Corporation April 26, 2013 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights Fiscal Year March 2013 Results Fiscal Year March 2014 Forecast Structural Reform Plan Update Summary 2
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: Highlights (1) – FY March 2013 Results
HIGHLIGHTS (1) – FY MARCH 2013 RESULTS Revenue and profits in all profit categories exceeded February forecast Revenue was ¥2,205.3 billion. Operating profit was ¥53.9 billion. Net income was ¥34.3 billion SKYACTIV products such as CX-5 and new Mazda6/Atenza significantly contributed to the profit i
Slide 5: Highlights (2) – FY March 2014 Forecast
HIGHLIGHTS (2) – FY MARCH 2014 FORECAST Profits are projected to more than double FY March 2013 levels in all profit categories Forecast revenue of ¥2,480 billion, operating profit of ¥120 billion and net income of ¥70 billion SKYACTIV products greatly contribute to profit enhancement Forecast globa
Slide 6: Fiscal Year March 2013 Results
FISCAL YEAR MARCH 2013 RESULTS 6
Slide 7: FY March 2013 Financial Metrics
FY MARCH 2013 FINANCIAL METRICS Full Year (Memo) FY March FY March Change from FY Mar. 2013 (Billion yen) 2013 2012 Prior Year Feb. Forecast Revenue 2,205.3 2,033.1 172.2 2,190.0 Operating profit 53.9 (38.7) 92.6 45.0 Ordinary profit 33.1 (36.8) 69.9 28.0 Profit before tax 39.1 (55.3) 94.4 33.0 Net
Slide 8: Global Sales Volume
GLOBAL SALES VOLUME Full Year (Memo) FY March FY March Change from FY Mar. 2013 (000) 2013 2012 Prior Year Feb. Forecast Global sales volume Japan 216 206 10 217 North America 372 372 0 380 USA 273 268 5 280 Europe 172 183 (11) 177 China 175 223 (48) 170 Other Markets 300 263 37 306 Australia 104 92
Slide 9: Japan
JAPAN Sales increased 5% year on year to 216,000 units CX-5 and new Atenza contributed to the growth. CX-5 had the highest sales in New Atenza Wagon SUV segment in FY2012 Full Year Sales Volume (000) New Atenza was launched in 206 5% 216 November and achieved 200 higher than expected sales Following
Slide 10: North America
NORTH AMERICA Sales were 372,000 units, same level with prior year USA: 273,000 units, up 2% year on year CX-9 (North American model) - CX-5 sales were strong after 2.5L model launch (000) Full Year Sales Volume - New Mazda6 off to a good 372 0% 372 start, receiving high Canada, Canada, acclaim 300
Slide 11: Europe
EUROPE Sales were 172,000 units As supply constraints of CX-5 were removed, its sales increased substantially in the fourth CX-5 (European model) quarter Full Year Sales Volume (000) New Mazda6 was highly 200 183 172 evaluated in Germany, UK, (6)% Russia, and Switzerland Sales were recovering due 10
Slide 12: China
CHINA Sales were 175,000 units Sales in the fourth quarter dropped 22% from the prior year, less than the decline of 33% in the third quarter Mazda3 Xingcheng Full Year Sales Volume Sales outlet count increased (000) 25 from the end of March 223 2012 to 396 stores 200 175 (as of the end of March 201
Slide 13: Other Markets
OTHER MARKETS Sales grew 14% year on year to 300,000 units Australia: Achieved a record 104,000 sales and 9.3% market share - Mazda3 became the best- selling model for two BT-50 (Australian model) consecutive fiscal years (000) Full Year Sales Volume - CX-5 achieved the highest 14% 300 sales in its
Slide 14: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2013 Full Year vs. FY March 2012 Full Year FY March (Billion yen) 2013 Cost Other Improvement Marketing + 10.5 53.9 + 36.7 Expense 50 Effects of CX-5 and new Mazda6 (6.8) 25 Exchange + 18.4 Vol. & Mix 0 + 33.8 US dollar +11.8 (25) Euro (2.0) Improvement Other +8.6 (D
Slide 15: Operating Profit Change vs. February Forecast
OPERATING PROFIT CHANGE FY March 2013 Full Year vs. February Forecast Improvement (Billion yen) (Deterioration) Results Cost Marketing Other February Exchange Improvement Expense + 1.6 53.9 + 9.9 + 0.0 + 1.2 Forecast 50 45.0 Vol. & Mix (3.8) US dollar +3.8 Euro +2.5 25 Other +3.6 Change from Februar
Slide 16: Sales Status of SKYACTIV Products
SALES STATUS OF SKYACTIV PRODUCTS <CX-5> Achieved sales of 200,000 units, exceeding initial sales forecast of 160,000 units Increased annual production capacity to 240,000 units due to its worldwide success Won high praise in all markets including the “2012-2013 Car of the Year Japan” <New Mazda6/At
Slide 17: Fiscal Year March 2014 Forecast
FISCAL YEAR MARCH 2014 FORECAST 17
Slide 18: FY March 2014 Financial Metrics
FY MARCH 2014 FINANCIAL METRICS Change from FY March 2014 Prior Year (Billion yen) 1st Half 2nd Half Full Year Amount YOY(%) Revenue 1,120.0 1,360.0 2,480.0 274.7 12 Operating profit 45.0 75.0 120.0 66.1 122 Ordinary profit 21.0 76.0 97.0 63.9 193 Profit before tax 17.0 71.0 88.0 48.9 125 Net income
Slide 19: Global Sales Volume Forecast
GLOBAL SALES VOLUME Change from FY March 2014 Prior Year (000) 1st Half 2nd Half Full Year Volume YOY(%) Global sales volume Japan 106 114 220 4 2 North America 204 211 415 43 11 USA 142 158 300 27 10 Europe 93 107 200 28 17 China 82 118 200 25 14 Other Markets 142 158 300 0 0 Australia 52 54 106 2
Slide 20: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2014 Full Year vs. FY March 2013 Full Year Strengthen Improvement (Billion yen) Cost sales globally (Deterioration) Improvement Marketing Sales increase + 15.7 Expense Exchange and mix improvement + 56.0 Other of SKYACTIV FY March 150 products (18.3) 2014 120.0 Vol.
Slide 21: Global Sales Initiatives in FY March 2014
GLOBAL SALES INITIATIVES IN FY MARCH 2014 Increase sales worldwide by increasing CX-5 sales, continuing the regional roll-out of the new Mazda6/Atenza and introducing the third SKYACTIV product Enhance fixed marketing to increase sales of SKYACTIV products and improve brand image Maintain sales tren
Slide 22: Structural Reform Plan Update
STRUCTURAL REFORM PLAN UPDATE [Structural Reform Plan] 1. Business innovation by SKYACTIV TECHNOLOGY 2. Accelerate further cost improvement through Monotsukuri Innovation 3. Reinforce business in emerging countries and establish a global production footprint 4. Promote global alliances 22
Slide 23: Structural Reform Plan Update - Summary
STRUCTURAL REFORM PLAN UPDATE - SUMMARY Steadily implemented Structural Reform Plan • Strong sales of SKYACTIV products improved volume and mix significantly and contributed to substantial profit improvements • Cost improvement through Monotsukuri Innovation is Future actions progressing steadily En
Slide 24: Business Innovation by SKYACTIV Technology
1. BUSINESS INNOVATION BY SKYACTIV TECHNOLOGY Introduced CX-5 and new Mazda6 which adopt SKYACTIV TECHNOLOGY and new design theme “KODO” CX-5 has been highly acclaimed and won Japan Car Of The Year, becoming a big hit in global markets Demand for the new Mazda6 has been strong in markets where it wa
Slide 25: Accelerate Cost Improvement Through Monotsukuri Innovation
2. ACCELERATE FURTHER COST IMPROVEMENT THROUGH MONOTSUKURI INNOVATION Cost improvement of new generation products, starting with CX-5 and continuing with the new Mazda6, is proceeding according to plan Investment efficiency, cost improvement and purchase denominated in foreign currency are making pr
Slide 26: Reinforce Business in Emerging Countries
3. REINFORCE BUSINESS IN EMERGING COUNTRIES AND ESTABLISH GLOBAL PRODUCTION FOOTPRINT Actions to strengthen production and sales in emerging countries such as ASEAN, Russia and Central and South America are progressing as planned Russia Thailand • Established a joint venture production • Increased p
Slide 27: Promote Global Alliances
4. PROMOTE GLOBAL ALLIANCES Promoting alliances to complement products, technology and regions Toyota Fiat Receive hybrid system technology Signed agreement to produce license, and start selling hybrid an open-top two-seater sports vehicle powered by SKACTIV in car for Alfa Romeo FY2013 Produc
Slide 28: Summary
SUMMARY <FY March 2013 Results> Revenue and profits in all profit categories exceeded February forecast Revenue was ¥2,205.3 billion. Operating profit was ¥53.9 billion. Net income was ¥34.3 billion. Strong selling CX-5 and new Mazda6 have largely contributed to the improvement <FY March 2014 Foreca
Slide 29: For the Future – Move Forward and Accelerate
FOR THE FUTURE – MOVE FORWARD AND ACCELERATE Operating profit ROS Start of Structural Reform Plan 80% (Billion yen) 162.1 50% 160 Mix of SKYACTIV models 31% 150.0 120.0 6.0%or more 120 4.7% 80 4.8% 53.9 40 2.4% 0 (FY March) '08 '12 '13 '14 '16 Plan Plan (1.9)% (40) (38.7) US$/Yen 114 79 83 90 77 € /
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Slide 31: Appendix
APPENDIX 31
Slide 32: Cash Flow and Net Debt
CASH FLOW AND NET DEBT Full Year Change from (Billion yen) FY March 2013 FY March 2012 Prior FY End Cash Flow - From operating activities 49.0 (9.1) - - From investing activities (40.3) (70.3) - - Free Cash Flow 8.7 (79.4) - Cash and Cash Equivalents 444.9 477.3 (32.4) Net Debt (274.1) (300.8) 26.7
Slide 33: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA (Billion yen) 670.1 614.8 600 113.2 551.1 86.0 506.6 516.9 511.7 74.8 459.1 121.6 119.8 89.4 100.3 114.7 408.1 93.7 63.1 Other 69.1 67.8 70.8 69.9 84.2 209.0 63.8 144.8 185.8 300 Europe 152.2 141.3 143.5 144.9 North 94.3 America 237.7 223.1 226.3 Japan 180.9 182.6 197.2 20
Slide 34: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 670.1 614.8 53.6 600 50.4 551.1 59.3 50.7 506.6 516.9 511.7 56.5 459.1 55.0 48.7 48.5 52.4 408.1 54.8 47.6 45.2 46.5 Other 58.4 49.1 Parts 47.9 300 566.1 504.7 442.1 420.6 418.0 Vehicle/ 405.1 355.2 Parts for 301.8 overseas production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY Mar
Slide 35: Revenue Change
REVENUE CHANGE FY March 2013 Full Year vs. FY March 2012 Full Year (Billion yen) FY March 2013 2,205.3 FY March 2012 2,033.1 Japan 1% 10% Overseas 5% 8% 5% 6% 2% 0% Total Vol. & Mix Exchange 35
Slide 36: Revenue Change
REVENUE CHANGE FY March 2013 4th Quarter vs. FY March 2012 4th Quarter (Billion yen) FY March 2013 670.1 FY March 2012 614.8 10% Japan 0% Overseas (1)% 10% 9% 5% 0% (1)% (5)% Total Vol. & Mix Exchange 36
Slide 37: FY March 2013 Financial Metrics – Fourth Quarter
FY MARCH 2013 FINANCIAL METRICS Fourth Quarter FY March FY March (Billion yen) 2013 2012 Change Revenue 670.1 614.8 55.3 Operating profit 34.3 15.6 18.7 Ordinary profit 11.7 21.3 (9.6) Profit before tax 9.0 11.2 (2.2) Net income 8.7 5.1 3.6 Operating ROS 5.1 % 2.5 % 2.6 pts EPS (Yen/Share) 2.9 2.5 0
Slide 38: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Fourth Quarter FY March FY March (000) 2013 2012 Change Global Sales Volume Japan 66 69 (3) North America 102 106 (4) Europe 53 54 (1) China 46 58 (12) Other Markets 75 69 6 Total 342 356 (14) Consolidated Wholesales Japan 69 71 (2) North America 109 1
Slide 39: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2013 4th Quarter vs. FY March 2012 4th Quarter Improvement (Billion yen) Cost (Deterioration) 50 Improvement Marketing + 9.5 Expense Other FY March Exchange 2013 (4.9) + 20.0 34.3 (6.5) 25 FY March 2012 Vol. & Mix 15.6 + 0.6 Change from Prior Year + 18.7 0 39
Slide 40: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES (Mem o) FY March 2013 Change from Prior Year FY Mar. 2013 (000) 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Feb. Forecast Global Sales Volume Japan 110 106 216 15 (5) 10 217 North America 182 190 372 0 0 0 380 Europe 85 87 172 (6) (5) (11)
Slide 41: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES FY March 2014 Change from Prior Year (000) 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Global Sales Volume Japan 106 114 220 (4) 8 4 North America 204 211 415 22 21 43 Europe 93 107 200 8 20 28 China 82 118 200 (8) 33 25 Other Markets 142 1
Slide 42: Key Data
KEY DATA (Billion yen) 130.0 100.0 100 89.9 77.2 60.0 58.0 50 0 FY March 2013 2014 2013 2014 2013 2014 Capital Depreciation R&D cost Spending 42
Slide 43: 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