Mazda Motor Corp. · TSE:7261
Mazda Motor — H1 FY2009 Earnings Presentation
45 slides from Mazda Motor's earnings presentation, Oct 29, 2009
Slide 1: FY2009 1st Half Results and Full Year Forecast
FY2009 1st HALF RESULTS AND FULL YEAR FORECAST Mazda Kiyora Exhibited at Tokyo Motor Show Mazda Motor Corporation October 29, 2009 1
Slide 2: Outline
OUTLINE Highlights FY2009 1st half results FY2009 full year forecast Public offering and sale of treasury shares, and environmental and safety initiatives In summary Question and answer session 2
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: FY2009 1st Half Highlights
FY2009 1st HALF HIGHLIGHTS Operating profit in the 2nd quarter was ¥5.9 billion, achieving positive profit ahead of plan. Furthermore, achieved profitability at all profit levels Revenue in the 1st half was ¥990.3 billion. Operating loss was ¥22.1 billion and net loss was ¥20.8 billion Free cash flo
Slide 5: FY2009 Full Year Highlights
FY2009 FULL YEAR HIGHLIGHTS Revenue of ¥2.13 trillion, an operating loss of ¥12 billion, and a net loss of ¥17 billion are projected Operating loss is estimated to improve by ¥38 billion from May forecast Operating profit forecast for the 2nd half remains unchanged. Project to return to profitabilit
Slide 6: FY2009 1st Half Results
FY2009 1st HALF RESULTS 6
Slide 7: FY2009 1st Half Financial Metrics
FY2009 1st HALF FINANCIAL METRICS 1st Half (Billion yen) FY2009 Better/(Worse) than 1Q 2Q Total FY2008 May Forecast Revenue 428.2 562.1 990.3 (585.2) 60.3 Operating profit (28.0) 5.9 (22.1) (82.8) 37.9 Ordinary profit (32.7) 3.1 (29.6) (78.1) 37.4 Profit before tax (33.5) 1.9 (31.6) (78.4) 37.4 Net
Slide 8: Key Data
KEY DATA (Billion yen) 1st Half Results 80 59.9 60 Tooling cost at overseas subsidiaries 40 56.3 20 37.9 38.4 39.7 15.9 0 FY08 FY09 FY08 FY09 FY08 FY09 Capital Spending Depreciation R&D Cost 8
Slide 9: Cash Flow and Net Debt
CASH FLOW AND NET DEBT FY2009 FY2008 1-2Q Full (Billion yen) 1Q 2Q TTL Year Cash Flow - Operating C/F 1.5 24.6 26.1 (67.4) - Investing C/F (11.3) (4.6) (15.9) (61.8) - Free C/F (9.8) 20.0 10.2 (129.2) Net debt 546.9 521.6 521.6 532.6 Net debt-to-equity ratio 137 129 129 129 % 9
Slide 10: Key Data
KEY DATA 1st Half Change from FY2009 FY2008 FY2008 Global retail volume (000) 577 701 (18) % Exchange rate Yen / U.S. Dollar 96 106 ¥ (10) Yen / Euro 133 163 ¥ (30) 10
Slide 11: Revenue Change
REVENUE CHANGE FY2009 1st Half Compared With FY2008 1st Half FY09 990.3 Domestic (4)% FY08 1,575.5 Overseas (25)% (Billion yen) 0% (29)% (8)% (20)% (37)% (40)% Total Volume & Mix Exchange 11
Slide 12: Japan
JAPAN Sales Volume & Share (%) (000 units) 123 105 (15)% 100 10 New Mazda Axela Sales exceeded May forecast by 9,000 units, due to strong sales 5.1 4.8 of new Axela with i-stop and 50 impact of eco-car tax cut and 5 subsidy Sales of the Axela exceeded target and achieved the highest first half volum
Slide 13: North America
NORTH AMERICA Sales Volume & US Share (%) (000 units) 200 200 158 Canada, (21)% other 4 62 Canada, other New Mazda3 52 Exceeded May forecast by 8,000 100 units to post 158,000 units thanks 1.9 1.9 mainly to strong sales of the new 2 Mazda3 and scrappage incentives USA Achieved the highest share of 1
Slide 14: Europe
EUROPE Sales Volume & Share (%) (000 units) 200 4 179 123 (31)% Mazda CX7 Diesel Achieved 123,000 units, 100 1.7 2 exceeding May forecast, thanks to scrappage incentives, etc. 1.3 Continued strategy to maintain the brand value despite worsening market environment Share performances continued to impr
Slide 15: China
CHINA Sales Volume & Share (%) (000 units) 85 100 35% 6 63 New Mazda6 Ruiyi Achieved growth of 35% from the 3.9 prior year, posting record sales of 3.6 4 85,000 units, thanks to continued 50 strong sales of Mazda6 and sales increase of Mazda2 & Mazda3 Share excluding local brand following expanded s
Slide 16: Other Markets
OTHER MARKETS Sales Volume & (%) (000 units) Share in Australia 136 10 106 (23)% 100 Mazda2 8.2 Mazda2 produced at AAT 7.8 8 Exceeded May forecast by 12,000 units Australia continued brisk sales at 39,000 units, gaining the record share of 8.2% Achieved the highest share in 10 years in New Zealand 0
Slide 17: Operating Profit Change
OPERATING PROFIT CHANGE FY2009 1st Half Compared With FY2008 1st Half (Billion yen) Lower global sales Improvement (Deterioration) FY2008 US Dollar (7.7) Euro (18.0) 60.7 Vol & Mix Other (30.3) 50 Others 0 + 47.5 Marketing FY2009 (50) Expenses Exchange (22.1) CR + 19.3 (122.7) + 29.1 (100) (56.0) (1
Slide 18: Operating Profit Change
OPERATING PROFIT CHANGE FY2009 1st Half Compared With FY2008 1st Half (Billion yen) Improvement ¥95.9 billion yen cost (Deterioration) FY2008 reduction in total 60.7 Vol & Mix 50 Others 0 + 47.5 Marketing FY2009 (50) Expenses Exchange (22.1) CR + 19.3 (122.7) + 29.1 (100) (56.0) (150) 18
Slide 19: Revenue and Profit Trends
REVENUE AND PROFIT TRENDS Revenue 771.8 803.7 (Billion yen) 512.4 562.1 32.4 448.0 428.2 28.3 Operating profit 5.9 (Billion yen) (24.2) (28.0) (64.9) FY2008 FY2009 (000) 1Q 2Q 3Q 4Q 1Q 2Q Global sales volume 358 343 263 297 263 314 Global production volume 353 352 302 172 235 310 Consolidated wholes
Slide 20: FY2009 Full Year Forecast
FY2009 FULL YEAR FORECAST 20
Slide 21: FY2009 Financial Forecast
FY2009 FINANCIAL FORECAST Full Year FY2009 Better/(Worse) Than (Billion yen) 1-2Q 3-4Q Full Year FY2008 May Forecast Revenue 990.3 1,139.7 2,130.0 (405.9) 100.0 Operating profit (22.1) 10.1 (12.0) 16.4 38.0 Ordinary profit (29.6) 13.6 (16.0) 2.7 44.0 Profit before tax (31.6) 10.6 (21.0) 30.3 44.0 Ne
Slide 22: Key Data
KEY DATA (000) Change From May FY2009 From Prior Year Forecast 1-2Q 3-4Q Full Year 1-2Q 3-4Q Full Year Full Year Global sales volume Japan 105 113 218 (18) 17 (1) 18 North America 158 143 301 (42) (4) (46) 11 Europe 123 115 238 (56) (28) (84) (12) China 85 100 185 22 28 50 15 Other 106 107 213 (30)
Slide 23: Operating Profit Change
OPERATING PROFIT CHANGE FY2009 Full Year Compared With FY2008 Full Year (Billion yen) Improvement Change from FY08 + 16.4 (Deterioration) Others + 77.4 0 Vol & Mix FY2009 FY2008 (12.0) (50) Marketing (28.4) Expenses + 26.0 Exchange CR (100) (70.0) + 68.0 (150) US Dollar (20.9) Euro (22.9) Other (41.
Slide 24: Operating Profit Change
OPERATING PROFIT CHANGE FY2009 Full Year Compared With FY2008 Full Year (Billion yen) Improvement ¥171.4 billion yen cost (Deterioration) reduction in total Others + 77.4 0 Vol & Mix FY2009 FY2008 (12.0) (50) Marketing (28.4) Expenses + 26.0 Exchange CR (100) (70.0) + 68.0 (150) Fixed cost reduction
Slide 25: Change to a Cost Structure Ensuring Profitability at 80% Capacity
CHANGE TO A COST STRUCTURE WHICH ENSURES PROFITABILITY WHEN PLANTS IN JAPAN ARE OPERATING AT 80% CAPACITY Domestic plant utilization ratio (%) 100 % 80 % 28.3 32.4 5.9 10.1 Operating profit (Billion yen) (24.2) (28.0) (64.9) FY2008 FY2009 1Q 2Q 3Q 4Q 1Q 2Q 2H US Dollar 105 108 96 94 97 94 88 Euro 16
Slide 26: Public Offering and Sale of Treasury Shares, and Environmental and Safety Initiatives
PUBLIC OFFERING AND SALE OF TREASURY SHARES, AND ENVIRONMENTAL AND SAFETY INITIATIVES 26
Slide 27: Capital Increase by Public Offering and Sale of Treasury Shares
CAPITAL INCREASE BY PUBLIC OFFERING AND SALE OF TREASURY SHARES Purpose ・ Secure R&D cost and capital spending for environmentally-friendly and safe vehicles -- Accelerate investment in next-generation products based on improvements in efficiency of internal combustion gasoline and diesel engines as
Slide 28: Enhance Environmental and Safety Initiatives
ENHANCE ENVIRONMENTAL AND SAFETY INITIATIVES 1 Enhance environmental and safety measures Develop the next-generation powertrains step-by- step based on Mazda SKY concept in line with “Sustainable Zoom-Zoom” - Introduce next-generation direct injection gasoline engine “Mazda SKY-G” in Japan in 2011 a
Slide 29: Enhance Environmental and Safety Initiatives: Building Block Strategy
ENHANCE ENVIRONMENTAL AND SAFETY INITIATIVES 2 - Provide “driving pleasure” and “environmental and safety features” to all customers - Step-1 Step-2 Step-3 i-stop Regenerative HEV Plug-in HEV braking Battery EV Axela Compact car concept ① ② Mazda Kiyora Motor ③ Biante ① Motor Generator ② Regenerativ
Slide 30: In Summary
IN SUMMARY Achieved positive operating profit in the 2nd quarter ahead of plan Achieved positive cash flow in the 1st half Operating profit forecast for the 2nd half remains unchanged from May forecast. Project to return to profitability at all profit levels Accelerate to change to a cost structure
Slide 31: Question and Answer Session
QUESTION AND ANSWER SESSION 31
Slide 32: Mazda Kiyora - Good Driving Performance and Ultra High Fuel Economy
MAZDA KIYORA - GOOD DRIVING PERFORMANCE AND ULTRA HIGH FUEL ECONOMY - 32 kilometers per liter fuel economy in the Demio class together with an idling stop system “i-stop” and regenerative braking system Compact car concept 9 Next-generation direct injection 1.3L gasoline engine “SKY-G” 9 Next-genera
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Slide 34: Appendix
APPENDIX 34
Slide 35: FY2009 Financial Forecast
FY2009 FINANCIAL FORECAST Better/(Worse) than FY2009 Oct. 5 Forecast (Billion yen) 1-2Q 3-4Q Full Year 1-2Q Full Year Revenue 990.3 1,139.7 2,130.0 (9.7) 0.0 Operating profit (22.1) 10.1 (12.0) 0.9 1.0 Ordinary profit (29.6) 13.6 (16.0) 2.9 3.0 Profit before tax (31.6) 10.6 (21.0) 3.9 3.0 Net income
Slide 36: Key Data
KEY DATA Full Year (000) FY2009 Change from May 1-2Q 3-4Q Full Year FY2008 Forecast Consolidated wholesales Japan 105 113 218 (2) 18 North America 126 164 290 (58) 17 Europe 109 116 225 (68) (15) China 5 10 15 (2) 0 Other 86 96 182 (56) 20 Total 431 499 930 (186) 40 36
Slide 37: Key Data
KEY DATA (Billion yen) 96.0 92.0 100 81.8 75.2 78.0 Tooling cost at overseas subsidiaries 50 30.0 0 FY08 FY09 FY08 FY09 FY08 FY09 Capital Spending Depreciation R&D Cost 37
Slide 38: FY2009 2nd Quarter Financial Metrics
FY2009 2nd QUARTER FINANCIAL METRICS Better/(Worse) (Billion yen) 2nd Quarter than FY2008 FY2009 FY2008 Amount Pct. Revenue 562.1 803.7 (241.6) (30) % Operating profit 5.9 32.4 (26.5) (82) % Ordinary profit 3.1 25.6 (22.5) (88) % Profit before tax 1.9 24.2 (22.3) (92) % Net income 0.7 14.5 (13.8) (9
Slide 39: Key Data
KEY DATA 2nd Quarter Change from FY2009 FY2008 FY2008 Global retail volume (000) 314 343 (9) % Exchange rate Yen/US Dollar 94 108 ¥ (14) Yen/Euro 134 162 ¥ (28) 39
Slide 40: Key Data
KEY DATA 2nd Quarter FY2009 FY2008 Change Global retail volume (000) Japan 64 69 (5) North America 84 91 (7) Europe 64 86 (22) China 44 30 14 Other 58 67 (9) Total 314 343 (29) Consolidated wholesales (000) Japan 63 65 (2) North America 73 105 (32) Europe 66 89 (23) China 3 3 0 Other 45 68 (23) Tota
Slide 41: Operating Profit Change
OPERATING PROFIT CHANGE FY2009 2nd Quarter Compared With FY2008 2nd Quarter (Billion yen) Improvement (Deterioration) FY2008 32.4 Vol & Mix FY2009 Others 5.9 + 27.7 0 Marketing Expenses Exchange CR + 8.1 (53.9) + 18.3 (26.7) (60) Change from FY2008 (26.5) 41
Slide 42: Operating Profit Change
OPERATING PROFIT CHANGE FY2009 Compared With May Forecast (Billion yen) Change from May Pub + 38.0 0 Others + 11.0 Exchange Marketing October + 11.0 CR Expenses Forecast 0.0 (12.0) Vol & Mix (3.0) (30) + 19.0 Improvement (Deterioration) May Forecast (60) (50.0) 42
Slide 43: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA 803.7 (Billion yen) 771.8 69.7 Other 78.2 Europe 216.1 562.1 600 205.9 512.4 51.6 46.9 448.0 428.2 North 137.5 34.0 America 231.7 114.7 48.9 216.5 104.2 95.5 300 122.5 137.3 106.6 100.5 Japan 286.1 271.3 228.1 235.7 203.3 183.2 0 FY2008 FY2009 1Q 2Q 3Q 4Q 1Q 2Q 43
Slide 44: Revenue by Product
REVENUE BY PRODUCT 803.7 (Billion yen) 771.8 73.6 Other 77.4 78.8 Parts 72.2 562.1 600 512.4 62.0 448.0 428.2 73.6 57.3 Vehicle / Parts for 59.5 67.2 overseas 56.1 production 62.3 53.1 651.3 300 622.2 442.8 379.3 318.5 319.1 0 FY2008 FY2009 1Q 2Q 3Q 4Q 1Q 2Q 44
Slide 45: 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