Mazda Motor Corp. · TSE:7261
Mazda Motor — Q3 FY March 2014 Earnings Presentation
37 slides from Mazda Motor's earnings presentation, Feb 5, 2014
Slide 1: Fiscal Year March 2014 Third Quarter Financial Results
FISCAL YEAR MARCH 2014 THIRD QUARTER FINANCIAL RESULTS New Mazda Axela Sport XD Mazda Motor Corporation February 5, 2014 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights Fiscal Year March 2014 Nine Month Results Fiscal Year March 2014 Full Year Forecast Progress of Structural Reform Plan Summary 2
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: Highlights (1) – Nine Month Results
HIGHLIGHTS (1) – NINE MONTH RESULTS Achieved revenue growth and profit increase over prior year through increased sales of SKYACTIV models Revenue was ¥1,940.2 billion. Operating profit was ¥124.6 billion. Net income was ¥77.4 billion Global sales volume was 953,000 units Strong sales of CX-5 and Ma
Slide 5: Highlights (2) – Full Year Forecast
HIGHLIGHTS (2) – FULL YEAR FORECAST Forecast global sales volume of 1,325,000 units Upward revision of full year forecast: Operating profit of ¥180 billion and net income of ¥110 billion Production started at new plant in Mexico in January 2014 Steady progress of the Structural Reform Plan Plan to p
Slide 6: Fiscal Year March 2014 Nine Month Results
FISCAL YEAR MARCH 2014 NINE MONTH RESULTS 6
Slide 7: FY March 2014 Financial Metrics
FY MARCH 2014 FINANCIAL METRICS FY March 2014 Nine Month First Third Nine Change from (Billion yen) Half Quarter Month Prior Year Amount YOY(%) Revenue 1,254.3 685.9 1,940.2 405.0 26% Operating profit 74.0 50.6 124.6 105.0 534% Ordinary profit 36.3 56.8 93.1 71.7 335% Profit before tax 33.9 56.1 90.
Slide 8: Global Sales Volume
GLOBAL SALES VOLUME FY March 2014 Nine Month First Third Nine Change from (000) Half Quarter Month Prior Year Global sales volume Volume YOY(%) Japan 111 51 162 12 8% North America 199 90 289 19 7% Europe 97 47 144 25 21% China 79 62 141 12 9% Other Markets 145 72 217 (8) (4)% Total 631 322 953 60 7
Slide 9: Global
GLOBAL Sales of CX-5 and Mazda6/Atenza continued to be strong New Mazda3/Axela was successfully launched - Introduced to Europe and Japan, following North America SKYACTIV models received high accolades in Japan and overseas [Atenza] - Won RJC Car of the Year and the Car of the Year Japan Emotional
Slide 10: Japan
JAPAN Sales were 162,000 units, up 8% year on year Share gained 0.1 point year on year to 4.2% Sales driven by SKYACTIV New Axela models Nine Month Sales Volume - Received approx. 21,000 (000) orders for new Axela in only 8% 162 150 150 two months since its launch - CX-5 was the top-selling 100 SUV
Slide 11: North America
NORTH AMERICA Sales were 289,000 units, up 7% year on year USA: 206,000 units, up 5% year on year, with retail sales improved 16% New Mazda3 (North American Model) - CX-5 and Mazda6 enjoyed (000) Nine Month Sales Volume brisk sales. They also 300 7% 289 maintained a large sales 270 Canada, mix of hi
Slide 12: Europe
EUROPE Sales were 144,000 units, up 21% year on year while overall demand was almost flat Key markets such as Germany, Russia, and UK enjoyed strong sales Mazda6 (European Model) - Germany: 33,000 units, up 20% year on Nine Month Sales Volume year despite small drop in overall (000) demand 150 21% 1
Slide 13: China
CHINA Sales were 141,000 units, up 9% year on year Locally produced CX-5 drove the sales CX-5 (Chinese Model) Nine Month Sales Volume Continued to enhance (000) Mazda brand advertising 150 9% 141 focusing on SKYACTIV 129 100 Increased the number of outlets to 432, up 36 from 50 the end of March 2013
Slide 14: Other Markets
OTHER MARKETS Sales were 217,000 units Australia: Sales remained strong with 76,000 units and 8.9% share CX-5 (Australian Model) - Mazda ranked third in overall sales by brand Nine Month Sales Volume (000) - CX-5 achieved the highest 225 (4)% 217 sales in its segment 200 Other 70 Other 83 ASEAN: Mal
Slide 15: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2014 Nine Month vs. FY March 2013 Nine Month Strengthen Improvement Cost sales globally (Billion yen) Improvement Marketing (Deterioration) Exchange + 13.1 Expense + 97.0 Sales increase Other FY March and mix 2014 150 improvement of (23.3) SKYACTIV 124.6 models (27.6
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 Full Year Change from FY March FY March Prior October (Billion yen) 2013 2014 Year Forecast Revenue 2,205.3 2,680.0 474.7 30.0 Operating profit 53.9 180.0 126.1 20.0 Ordinary profit 33.1 132.0 98.9 9.0 Profit before tax 39.1 123.0 83.9 11.0 Net income 34.3 110.0 75.7
Slide 18: Global Sales Volume
GLOBAL SALES VOLUME Full Year Change from FY March FY March Prior October (000) 2013 2014 Year Forecast Global Sales Volume Japan 216 238 22 13 North America 372 402 30 (13) Europe 172 200 28 0 China 175 200 25 0 Other Markets 300 285 (15) (10) Total 1,235 1,325 90 (10) <Breakdown> USA 273 290 17 (1
Slide 19: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2014 Full Year vs. FY March 2013 Full Year Strengthen Improvement sales globally (Billion yen) Cost (Deterioration) Improvement Marketing Exchange + 20.7 Expense 250 Sales increase and mix + 110.0 Other improvement FY March of SKYACTIV (20.4) 2014 200 models 180.0 (4
Slide 20: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2014 Full Year vs. October Forecast Improvement (Billion yen) (Deterioration) 250 Cost Marketing Feb. Expense Forecast 200 Oct. Exchange Improvement Forecast + 20.0 + 5.0 + 0.0 Other 180.0 160.0 Vol. & Mix (2.0) 150 (3.0) 100 US Dollar +5.8 Euro +7.3 Other +6.9 50 Ch
Slide 21: Global Sales Initiatives in the Fourth Quarter
GLOBAL SALES INITIATIVES IN THE FOURTH QUARTER <New Mazda3/Axela> Promote consistent sales at the right price in major countries by making an appeal for the product values, same as with CX-5 and Mazda6/Atenza Begin full-scale advertising in the United States. Start sales in Australia in February <By
Slide 22: Progress of Structural Reform Plan
PROGRESS OF STRUCTURAL REFORM PLAN Business Innovation by Reinforce Business in Emerging Countries SKYACTIV TECHNOLOGY and Establish Global Production Footprint Promote sales at the right price Preparations for production at the plant in Mexico went smoothly Minimize fleet sales and mass produ
Slide 23: Summary
SUMMARY 23
Slide 24: Summary
SUMMARY [Nine Month Results] Achieved revenue growth and profit increase over prior year through increased sales of SKYACTIV models Sales of new Mazda3/Axela are strong in the markets where it has been introduced and SKYACTIV models are driving sales globally [Full Year Forecast ] Upwardly revised f
Slide 25: Returns to Shareholders, Consolidation of Shares and Change in Shares per Unit
RETURNS TO SHAREHOLDERS, CONSOLIDATION OF SHARES AND CHANGE IN THE NUMBER OF SHARES PER SHARE UNIT Returns to Shareholders Plan to pay a year-end dividend of ¥1 per share Aim to provide dividends on a stable basis and realize a future steady increase Consolidation of shares and Change in the number
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Slide 27: Appendix
APPENDIX 27
Slide 28: Cash Flow and Net Debt
CASH FLOW AND NET DEBT FY March 2014 Change First Third Nine from Prior (Billion yen) Half Quarter Month FY End Cash Flow - From operating activities 7.7 35.4 43.1 - - From investing activities (49.2) (24.6) (73.8) - - Free Cash Flow (41.5) 10.8 (30.7) - Cash and Cash Equivalents 394.2 426.7 426.7 (
Slide 29: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA (Billion yen) 670.1 685.9 638.4 615.9 100.3 600 113.2 97.9 106.7 506.6 516.9 511.7 141.9 121.6 100.3 126.4 Other 89.4 114.7 109.3 Europe 67.8 70.8 84.2 209.0 183.9 226.8 300 North 194.7 152.2 141.3 America 144.9 204.5 226.3 205.2 230.2 216.9 Japan 197.2 167.9 0 1Q 2Q 3Q 4Q
Slide 30: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 670.1 685.9 638.4 50.2 53.6 615.9 600 56.0 59.4 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 46.5 300 576.3 566.1 Vehicles/ 514.7 527.1 Parts for 420.6 418.0 405.1 overseas production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY March 2013 FY March 2014 30
Slide 31: Revenue Change
REVENUE CHANGE FY March 2014 Nine Month vs. FY March 2013 Nine Month (Billion yen) 30% FY March 2014 1,940.2 FY March 2013 1,535.2 Japan 2% Overseas 8% 26% 20% 16% 10% 10% 0% Total Vol. & Mix Exchange 31
Slide 32: Revenue Change
REVENUE CHANGE FY March 2014 Third Quarter vs. FY March 2013 Third Quarter (Billion yen) 40% FY March 2014 685.9 FY March 2013 511.7 Japan 5% 34% Overseas 12% 20% 17% 17% 0% Total Vol. & Mix Exchange 32
Slide 33: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2014 Third Quarter vs. FY March 2013 Third Quarter Improvement (Billion yen) Cost Improvement Marketing (Deterioration) Exchange Expense 75 + 2.4 + 36.7 Other FY March 2014 (10.9) 50.6 50 (10.2) Vol. & Mix + 24.5 25 FY March 2013 8.1 0 Change from prior year + 42.5 3
Slide 34: Consolidated Wholesales
CONSOLIDATED WHOLESALES FY March 2014 Nine Month First Third Nine Change from (000) Half Quarter Month Prior Year Consolidated Wholesales Japan 116 52 168 11 North America 178 103 281 20 Europe 85 53 138 32 China 3 2 5 2 Other Markets 142 70 212 (7) Total 524 280 804 58 34
Slide 35: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Change from FY March 2014 Change from Prior Year Oct. Forecast First Second Full First Second Full Full (000) Half Half Year Half Half Year Year Global Sales Volume Japan 111 127 238 1 21 22 13 North America 199 203 402 17 13 30 (13) Europe 97 103 200
Slide 36: Key Data
KEY DATA (Billion yen) 140.0 100.0 100 Full Year 89.9 Full Year 77.2 73.8 70.3 Full Nine 65.1 Year 60.0 58.0 Month Nine 53.2 50 Month Nine 44.9 40.8 Month 0 (FY March) 2013 2014 2013 2014 2013 2014 Capital Depreciation R&D cost Spending * Data for FY March 2014 full year are forecast 36
Slide 37: 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