Mazda Motor Corp. · TSE:7261

Mazda Motor — FY March 2020 Earnings Presentation

39 slides from Mazda Motor's earnings presentation, May 2020

  1. Slide 1: Fiscal Year March 2020 Financial Results

    FISCAL YEAR MARCH 2020 FINANCIAL RESULTS

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights - Financial Results Highlights - Novel Coronavirus Impact And Measures Taken - Financial Forecast  Fiscal Year March 2020 Results The overseas subsidiaries which apply US GAAP adopted ASU 2014-09 ”Revenue from Contracts with Customers” from the beginning of FY Marc

  3. Slide 3: FY March 2020 Financial Results Highlights

    FY MARCH 2020 FINANCIAL RESULTS HIGHLIGHTS  Global sales were 1,419,000 units, down 9% year on year  Revenue was ¥3,430.3 billion, operating profit was ¥43.6 billion and net income was ¥12.1 billion  Annual dividend of ¥35 per share with year-end dividend of ¥20 per share planned (000 units) (Bil

  4. Slide 4: Review of FY March 2020

    REVIEW OF FY MARCH 2020  Announced Medium-Term Management Plan - Investment in unique products and customer experience - Curb expenses that depreciate brand value - Investment in areas in which we need to catch up  Introduced new-generation line-up, MAZDA3 and CX-30. The models have been highly re

  5. Slide 5: Novel Coronavirus Impact and Measures Taken

    NOVEL CORONAVIRUS IMPACT AND MEASURES TAKEN Business Impact & our Measures Late January to Mid March From Early March  The spread of the Coronavirus  Global pandemic leading to restricted infection in China, impacting economic activities and stay-at-home production, sales and supply orders, causin

  6. Slide 6: Financial Forecast

    FINANCIAL FORECAST  FY March 2021 profit and dividend forecast undecided - Business environment expected to remain highly uncertain due to the novel coronavirus outbreak - Continue to closely monitor the impact on business  Financial forecasts will be announced once available and ready 6

  7. Slide 7: Fiscal Year March 2020 Results

    FISCAL YEAR MARCH 2020 RESULTS 7

  8. Slide 8: FY March 2020 Global Sales Volume

    FY MARCH 2020 GLOBAL SALES VOLUME Full Year (Feb. Forecast) (000 units) FY March FY March Change from FY March 2019 2020 Prior Year Feb. Forecast 2020 Volume YOY(%) Volume Global Sales Volume Japan 215 202 (12) (6)% (2) 204 North America 421 397 (24) (6)% (28) 425 Europe 270 264 (6) (2)% (16) 279 Ch

  9. Slide 9: Japan

    JAPAN  202,000 units sold, down 6% year on year  Market share was down 0.1 points year on year at 4.0%, while registered Full-Year Sales Volume and vehicle market share (000 units) Market Share remained flat at 5.2% 4.1% 4.0%  Sales of new-generation 215 (6)% 202 MAZDA3 and CX-30 remained strong

  10. Slide 10: North America

    NORTH AMERICA  397,000 units sold, down 6% year on year  USA: 275,000 units, down 4% year on year - Market share was flat year Full-Year Sales Volume and on year at 1.7% US Market Share - Sales of CX-5 and CX-9 (000 units) 1.7% 1.7% increased year on year 421 （6）% 397  Canada: 64,000 units, down

  11. Slide 11: Europe

    EUROPE  264,000 units sold, down 2% year on year  Market share was flat year on year at 1.4%  Sales in Europe excluding Full-Year Sales Volume and Russia stood at 232,000 Market Share (000 units) units, down 2% year on year 1.4% 1.4% - Germany: 64,000 units, 270 (2)% 264 down 5% year on year 32 R

  12. Slide 12: China

    CHINA  212,000 units sold, down 14% year on year  Sales drastically declined from February due to spread of the novel Full-Year Sales Volume and coronavirus infection Market Share (000 units)  Product introductions and 0.9% 0.9% sales events were held 247 (14)% 212 online as customer traffic decl

  13. Slide 13: Other Markets

    OTHER MARKETS  345,000 units sold, down 16% year on year  Australia: 90,000 units, down 18% year on year  ASEAN: 103,000 units, down Full-Year Sales Volume and 24% year on year Australia Market Share (000 units) 9.7% ⁃ Thailand: 52,000 units, 8.8% down 27% year on year 409 (16)% 345 ⁃ Vietnam: 26

  14. Slide 14: FY March 2020 Financial Metrics

    FY MARCH 2020 FINANCIAL METRICS Full Year FY March FY March Change from (Billion Yen) 2019 2020 Prior Year Feb. Forecast Amount YOY(%) Amount Revenue 3,564.2 3,430.3 (133.9) (4)% (69.7) Operating profit 82.3 43.6 (38.7) (47)% (16.4) Ordinary profit 116.1 53.1 (63.0) (54)% (16.9) Profit before tax 10

  15. Slide 15: FY March 2020 Operating Profit Change

    FY MARCH 2020 OPERATING PROFIT CHANGE FY March 2020 Full Year vs. FY March 2019 Full Year - Wholesales volume declined 79,000 units - Effects of reduced marketing 【Exchange Rates】 Improvement expenses and improved per- unit profit: approx. ¥50 billion USD (1.7) EUR (22.9) (Deterioration) - Mix impro

  16. Slide 16: FY March 2020 Operating Profit Change vs. February Forecast

    FY MARCH 2020 OPERATING PROFIT CHANGE FY March 2020 Full Year vs. February Forecast Improvement (Deterioration) (Billion yen) Wholesales volume 【Exchange Rate】 declined 36,000 units Euro 0.0 USD (0.1) CAD (0.4) AUD (0.9) GBP 0.1 Other (0.1) Feb. Forecast 60.0 Volume & Mix Cost R&D Cost Results Excha

  17. Slide 17: Mazda Motor Corporation

    17 MAZDA MOTOR CORPORATION

  18. Slide 18: Supplement: Sales Area Initiatives in Response to the Novel Coronavirus

    SUPPLEMENT: SALES AREA INITIATIVES IN RESPONSE TO THE NOVEL CORONAVIRUS 18

  19. Slide 19: Sales Area Initiatives in Response to the Novel Coronavirus

    SALES AREA INITIATIVES IN RESPONSE TO THE NOVEL CORONAVIRUS  Promptly stopped shipments and made production adjustment from the week starting March 16, when the ratio of dealerships in operation in USA and Europe started to decline (announced on March 24th)  Collection of key global indicators and

  20. Slide 20: Weekly Status Follow-up (USA Example)

    WEEKLY STATUS FOLLOW-UP (USA EXAMPLE) Dealer operation ratio, YOY sales and inventory trends Operation ratio Decision on shipment stop (dotted line) and production adjustment 100% 0% Mazda sales 90% (10% YOY(solid line) 80% (20% 110000 70% (30% Sea in 100000 transit 60% 90000 (40% Port80000 stock 50

  21. Slide 21: Inventory and Production Adjustment

    INVENTORY AND PRODUCTION ADJUSTMENT Implemented a production adjustment of approx. Dealer Inventory Trend 130,000 units* to restore appropriate inventory (excluding China) levels, following declining sales since April *As of Apr. 22 news release Inventory increased Inventory decreased by approx. 45,

  22. Slide 22: April 2020 Sales Volume

    APRIL 2020 SALES VOLUME April April Change from *Industry (000 units) 2019 2020 Prior Year YOY Global sales volume Volume YOY(%) Japan 11 8 (3) (26)% (29)%/(27)% North America 30 14 (16) (54)% Europe 21 4 (17) (80)% China 17 17 0 1% 4%/(3)% Other Markets 31 7 (24) (78)% Total 110 50 (60) (54)% <Brea

  23. Slide 23: Appendix

    APPENDIX MAZDA MOTOR CORPORATION

  24. Slide 24: Cash Flow and Net Cash

    CASH FLOW AND NET CASH FY March 2019 FY March 2020 Change from (Billion yen) Full Year Full Year Prior FY End Cash Flow - From Operating activities 146.7 34.8 - - From Investing activities (131.6) (127.6) - - Free Cash Flow 15.1 (92.7) - Cash and Cash Equivalents 701.6 568.0 (133.6) Net Cash 94.6 (5

  25. Slide 25: Revenue by Geographic Area

    REVENUE BY GEOGRAPHIC AREA (Billion yen) 942.9 872.3 856.7 892.3 874.0 900 848.9 857.7 849.7 144.6 159.3 150.6 169.5 129.1 127.0 125.0 Other 141.7 188.6 155.7 Europe 156.6 175.6 178.2 179.8 184.6 185.4 600 300.2 258.8 320.2 North 299.7 263.1 271.5 278.0 America 309.7 300 Japan 267.4 273.1 309.5 285.

  26. Slide 26: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 942.9 872.3 892.3 874.0 900 856.7 64.4 848.9 857.7 849.7 Other 62.2 63.5 71.0 66.4 69.4 57.6 63.3 58.7 Parts 65.7 68.1 64.8 67.5 65.8 66.0 65.8 600 Vehicles / Parts for 807.5 744.4 719.8 760.7 725.5 728.4 725.2 742.8 Overseas 300 Production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

  27. Slide 27: Revenue Change (Full Year)

    REVENUE CHANGE (FULL YEAR) FY March 2020 Full Year vs. FY March 2019 Full Year (Billion yen) 10% FY March 2020 3,430.3 FY March 2019 3,564.2 Domestic (2)% 5% Overseas 1 % 0% (1)% (5)% (3)% (4)% (10)% Total Volume & Mix Exchange 27

  28. Slide 28: Revenue Change (3 Months)

    REVENUE CHANGE (3 MONTHS) FY March 2020 4th Quarter vs. FY March 2019 4th Quarter (Billion yen) 10% FY March 2020 874.0 FY March 2019 942.9 5% Domestic (2)% Overseas (3)% 0% (2)% (5)% (5)% (7)% (10)% Total Volume & Mix Exchange 28

  29. Slide 29: Global Sales Volume and Consolidated Wholesales (Full Year)

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES (FULL YEAR) Full year FY March FY March Change from (000 units) 2019 2020 Prior Year Feb. Forecast Global sales volume Volume YOY(%) Volume Japan 215 202 (12) (6)% (2) North America 421 397 (24) (6)% (28) Europe 270 264 (6) (2)% (16) China 247 212 (36)

  30. Slide 30: Global Sales Volume and Consolidated Wholesales (3 Months)

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES (3 MONTHS) Fourth Quarter FY March FY March Change from (000 units) 2019 2020 Prior Year Global sales volume volume YOY(%) Japan 65 64 (1) (2)% North America 101 92 (9) (9)% Europe 73 45 (29) (39)% China 52 36 (16) (31)% Other Markets 100 76 (23) (24)%

  31. Slide 31: FY March 2020 Financial Metrics (3 Months)

    FY MARCH 2020 FINANCIAL METRICS (3 MONTHS) Fourth Quarter FY March FY March Change from (Billion yen) 2019 2020 Prior Year Amount YOY(%) Revenue 942.9 874.0 (68.9) (7)% Operating profit 25.2 11.3 (13.9) (55)% Ordinary profit 33.2 3.0 (30.2) (91)% Profit before tax 30.3 1.5 (28.8) (95)% Net income 27

  32. Slide 32: FY March 2020 Operating Profit Change (3 Months)

    FY MARCH 2020 OPERATING PROFIT CHANGE (3 MONTHS) FY March 2020 Fourth Quarter vs. FY March 2019 Fourth Quarter - Wholesales volume Improvement declined 31,000 units (Deterioration) - Reduced marketing expenses and improved 【Exchange Rates】 per-unit profit, etc. USD (2.8) EUR (5.7) CAD (0.9) AUD (5.0

  33. Slide 33: Global Sales Volume and Consolidated Wholesales (1st Half / 2nd Half)

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES (1st HALF / 2 nd HALF) FY March 2020 Change from Prior Year (000 units) 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Global sales volume Japan 98 104 202 (4) (8) (12) North America 202 194 397 (20) (4) (24) Europe 136 127 264 1 (8) (6) China

  34. Slide 34: FY March 2020 Financial Metrics (1st Half / 2nd Half)

    FY MARCH 2020 FINANCIAL METRICS (1st HALF / 2 nd HALF) FY March 2020 Change from Prior Year (Billion Yen) 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Revenue 1,706.6 1,723.7 3,430.3 (22.4) (111.5) (133.9) Operating profit 25.8 17.8 43.6 (4.0) (34.7) (38.7) Ordinary profit 34.0 19.1 53.1

  35. Slide 35: Exchange Rates

    EXCHANGE RATES Change from Feb. FY March 2020 Change from Prior Year Forecast （Yen） 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Full Year US Dollar 109 109 109 (2) (3) (2) (0) Euro 121 120 121 (8) (7) (8) 0 Canadian Dollar 82 82 82 (3) (3) (3) (0) Australia Dollar 75 73 74 (7) (7) (7) (1

  36. Slide 36: Crossover SUV Ratio

    CROSSOVER SUV RATIO （000 units） 1,500 Crossover SUV 34% 39% 46% 12% 29% 49% 27% 21% 1,000 52% Passenger 500 vehicles, and others 0 FY March 2012 2013 2014 2015 2016 2017 2018 2019 2020 Global sales 1,247 1,235 1,331 1,397 1,534 1,559 1,631 1,561 1,419 volume （000 units） Results 36

  37. Slide 37: Key Data

    KEY DATA (Billion Yen) 150 132.6 134.7 135.0 119.7 100 88.4 92.3 50 0 FY March 2019 2020 * 2019 2020 2019 2020 Capital Depreciation R&D Cost Expenditure Cost *Lease assets recognized on the balance sheet in accordance with accounting standard change are not included in capital expenditure. 37

  38. Slide 38: Dividend Payment

    DIVIDEND PAYMENT Trend of dividends per share Interim dividends 35 35 35 35 Year-end dividends 30 20 20 20 20 15 （Forecast） 10 15 15 15 15 15 1 10 FY March 2014 FY March 2015 FY March 2016 FY March 2017 FY March 2018 FY March 2019 FY March 2020 Results Plan Note) A share consolidation was implemente

  39. Slide 39: Disclaimer

    DISCLAIMER The projections and future strategies shown in this presentation are based on various uncertainties including, but not limited to, 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 M

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