Mazda Motor Corp. · TSE:7261
Mazda Motor — FY March 2010 Earnings Presentation
44 slides from Mazda Motor's earnings presentation, Apr 27, 2010
Slide 1: Fiscal Year Ended March 2010 Financial Results
FISCAL YEAR ENDED MARCH 2010 FINANCIAL RESULTS New Mazda Axela: 90th Anniversary Special Edition (Sport 20S) Mazda Motor Corporation April 27, 2010 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights FY March 2010 Results FY March 2011 Forecast Framework for Medium- and Long-Term Initiatives Building Block Strategy Updates 2
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: FY March 2010 Highlights
FY MARCH 2010 HIGHLIGHTS Achieved profitability for the full year with an operating profit of ¥9.5 billion, which exceeded the February forecast by 90% and the prior year results by ¥37.9 billion Free cash flow was positive ¥67.4 billion Global sales volume was 1.193 million units, up 13,000 units f
Slide 5: FY March 2011 Forecast Highlights
FY MARCH 2011 FORECAST HIGHLIGHTS Revenue of ¥2,270 billion, an operating profit of ¥30 billion and a net income of ¥5 billion are projected Expect to achieve revenue and profit increases, and profitability in all profit categories Expect to achieve positive free cash flow Global sales volume is for
Slide 6: FY March 2010 Results
FY MARCH 2010 RESULTS 6
Slide 7: FY March 2010 Financial Metrics
FY MARCH 2010 FINANCIAL METRICS Memo: Feb. (Billion yen) Full Year Change from Prior Year Forecast FY March FY March for FY 2010 2009 Amount (%) March 2010 Revenue 2,163.9 2,535.9 (372.0) (15) % 2,150.0 Operating profit 9.5 (28.4) 37.9 - 5.0 Ordinary profit 4.6 (18.7) 23.3 - 0.0 Profit before tax (7
Slide 8: Cash Flow and Net Debt
CASH FLOW AND NET DEBT Full Year FY March Improvement/ (Billion yen) FY March 2010 2009 (Deterioration) 1st 2nd Full Half Half Year Full Year Cash Flow - Operating CF 26.1 85.5 111.6 (67.4) - - Investing CF (15.9) (28.3) (44.2) (61.8) - - Free CF 10.2 57.2 67.4 (129.2) - Net debt (521.6) (375.8) (37
Slide 9: Key Data
KEY DATA Full Year FY March 2010 Change From Prior Year Results Change (000) 1st 2nd Full 1st 2nd Full from Feb. Half Half Year Half Half Year Forecast Global sales volume Japan 105 116 221 (18) 20 2 3 North America 158 149 307 (42) 2 (40) 6 USA 106 104 210 (32) 2 (30) 3 Europe 123 116 239 (56) (27)
Slide 10: Japan
JAPAN Sales totaled 221,000 units, up 3,000 units from the February forecast Brand recognition steadily improved Since the 3rd quarter, sales have exceeded the prior year result. In the 4th quarter, brisk sales of Demio, new Axela and Premacy brought 30% growth year-on-year Full-year sales also exce
Slide 11: North America
NORTH AMERICA Sales totaled 307,000 units, up 6,000 units from the February forecast Cutbacks in incentives and fleet sales continued to improve brand value In the 4th quarter, sales rebounded to exceed the prior year level US sales volume excluding fleet sales achieved the highest share in the past
Slide 12: Europe
EUROPE Sales totaled 239,000 units, up 1,000 units from the February forecast Continued a focus on brand enhancement In UK, sales volume reached the 2nd highest level ever. The Mazda2 was ranked in the top-level for residual value in the B-segment Inventory in Russia was reduced to an appropriate le
Slide 13: China
CHINA Sales totaled 196,000 units, up 2,000 units from the February forecast Mazda brand value improved with Mazda6 achieving the top brand strength in an assessment* of Japanese vehicles Sales increased 46% year-over-year, hitting record high sales, as a result of strong sales of Mazda6 which added
Slide 14: Other Markets
OTHER MARKETS Sales totaled 230,000 units, up 1,000 units from the February forecast Sales have exceeded the prior year results since the 3rd quarter, and sales in the 4th quarter increased 28% Australia sales achieved an all-time high volume, a 3% growth year-on-year New Zealand sales gained the hi
Slide 15: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2010 Compared with FY March 2009 (Billion yen) FY March US dollar (19.4) Other Euro (22.0) 2010 Other (35.1) 84.3 9.5 0 Vol. & Mix Marketing FY March (50) Expense 2009 Cost 22.7 (28.4) Exchange Improvement 68.0 (100) (60.6) Improvement (150) (Deterioration) (76.5) (2
Slide 16: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2010 Compared with FY March 2009 (Billion yen) FY March Cost improvement Other of total ¥175.0 billion 2010 84.3 9.5 0 Vol. & Mix Marketing FY March (50) Expense 2009 Cost 22.7 (28.4) Exchange Improvement 68.0 (100) (60.6) Fixed cost Improvement (150) improvement of
Slide 17: Cost Structure Ensuring Profitability with Strong Yen
ESTABLISHED A COST STRUCTURE WHICH ENSURES PROFITABILITY EVEN WITH A STRONG YEN AND AT 80% PLANT UTILIZATION Revenue (Billion yen) 771.8 803.7 616.0 562.1 557.6 512.4 448.0 428.2 Operating 28.3 32.4 Profit 11.1 20.5 5.9 (Billion yen) Achieved profitability in (24.2) all profit categories (28.0) (64.
Slide 18: FY March 2011 Forecast
FY MARCH 2011 FORECAST 18
Slide 19: FY March 2011 Financial Metrics
FY MARCH 2011 FINANCIAL METRICS FY March FY March 2011 2010 Full Year (Billion yen) 1st Half 2nd Half Full Year Full Year Change Revenue 1,130.0 1,140.0 2,270.0 2,163.9 106.1 Operating profit 10.0 20.0 30.0 9.5 20.5 Ordinary profit 8.0 21.0 29.0 4.6 24.4 Profit before tax 3.0 18.0 21.0 (7.3) 28.3 Ne
Slide 20: Key Data
KEY DATA (Billion yen) 100.0 100 85.2 76.4 73.0 60.0 50 29.8 0 FY March FY March FY March FY March FY March FY March 2010 2011 2010 2011 2010 2011 Capital Spending Depreciation R&D Cost 20
Slide 21: Key Data
KEY DATA Full Year Share FY March FY March Change FY March Change 2011 2010 Vol. Pct. 2011 Global sales volume (000) (%) (pts) Japan 210 221 (11) (5) 4.6 0.1 North America 358 307 51 17 USA 250 210 40 19 2.0 0.1 Europe 226 239 (13) (6) 1.3 *1 0.0 China 230 196 34 17 1.4 0.1 Other 246 230 16 7 8.2 *2
Slide 22: Market Summary
MARKET SUMMARY We mark the turnaround in the fiscal year ended March 2011, and enhance sales actions depending on conditions in each market Globally maintain brand value enhancement policy and continue residual value improvements Details by market: • Japan: With the introduction of the new Premacy,
Slide 23: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2011 Compared with FY March 2010 (Billion yen) Vol. & Mix Improvement Exchange (Deterioration) 40 + 29.0 Cost Marketing FY March Improvement Expense 2011 Other (4.0) 0.0 + 1.5 30.0 (6.0) 20 US Dollar (7.6) Euro (7.0) FY March Other 10.6 2010 9.5 0 Change from FY Marc
Slide 24: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2011 Compared with FY March 2010 (Billion yen) Vol. & Mix Improvement Exchange (Deterioration) 40 + 29.0 Cost Marketing FY March Improvement Expense 2011 Other (4.0) 0.0 + 1.5 30.0 (6.0) 20 Enhance initiatives to enhance brand value FY March 2010 9.5 Further improve
Slide 25: In Summary (1)
IN SUMMARY (1) <FY March 2010> Achieved profitability for the full year with operating profit of ¥9.5 billion. Cash flow was also positive Operating profit of ¥9.5 billion, improved ¥59.5 billion from the May forecast Achieved profitability in all profit categories since the 2nd quarter Shifted towa
Slide 26: In Summary (2)
IN SUMMARY (2) <FY March 2011> Expect to achieve revenue and profit increases, and profitability in all profit categories Expect continued positive free cash flow Global sales volume is forecast to total 1.27 million units, up 77,000 units over the prior year Continue product-led growth through laun
Slide 27: Framework for Medium- and Long-Term Initiatives - 5 Pillars
FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES - 5 Pillars - 1. Brand Value 2. Monotsukuri Innovation 3. Environmental and Safety Technologies 4. Emerging Markets 5. Ford Synergies 27
Slide 28: 1. Brand Value
FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (1) 1. Brand Value Implement brand value enhancement project globally focusing on brand loyalty ・ Steadily improve residual values in major markets ・ Develop and implement network enhancement plans in major markets ・ Develop and implement various measu
Slide 29: 2. Monotsukuri Innovation
FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (2) 2. Monotsukuri Innovation Steady progress of Monotsukuri Innovation <<Improve development efficiency and save investment>> ・ Significantly improve development efficiency through the Bundled Product Planning and the Common Architecture Concept (30%
Slide 30: 3. Environmental and Safety Technologies
FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (3) 3. Environmental and Safety Technologies Steady progress in environmental and safety actions based on the Building Block Strategy ・ Expand adoption of the i-stop ・ Accelerate functionality and cost developments for next generation powertrains (Mazd
Slide 31: 4. Emerging Markets and 5. Ford Synergies
FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (4) 4. Emerging Markets Expand and enhance production and sales structures in emerging markets where Mazda participates ・ Maximum utilization of the new passenger car plant in Auto Alliance Thailand and reinforce the sales network ・ Progress of product
Slide 32: Medium- and Long-Term Outlook (FY ending March 2016)
FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (5) Medium- and long-term outlook (FY ending March 2016) ・ Global sales volume 1.7 million units ・ Operating profit ¥170 billion ・ ROS 5% or more 32
Slide 33: Outline of Medium- and Long-Term Outlook
FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (6) Outline of Medium- and Long-Term Outlook (Billion yen) 250 Cost Improvement Marketing 120.0 Expense Other FY March 200 2016 (30.0) 170.0 (29.5) 150 Vol. & Mix Exchange 100.0 0.0 100 Improvement FY March (Deterioration) 50 2010 9.5 0 Change from FY
Slide 34: Building Block Strategy Updates
BUILDING BLOCK STRATEGY UPDATES Established environmental technology strategy from 2011 to 2015, and moving toward introduction stages - Provide “fun-to-drive” and “environmental and safety features” to all customers Step-1 Step-2 Step-3 Plug-in HEV i-stop Regenerative braking HEV Battery EV Mazda3
Slide 35: Appendix
APPENDIX 35
Slide 36: FY March 2010 Fourth Quarter Financial Metrics
FY MARCH 2010 FOURTH QUARTER FINANCIAL METIRCS (Billion yen) Fourth Quarter Change FY March 2010 FY March 2009 Amount Pct. Revenue 616.0 448.0 168.0 38 % Operating profit 20.5 (64.9) 85.4 - Ordinary profit 23.5 (70.8) 94.3 - Profit before tax 14.1 (101.2) 115.3 - Net income 9.9 (100.4) 110.3 - Opera
Slide 37: Key Data
KEY DATA Fourth Quarter (000) FY March FY March Change 2010 2009 Global sales volume Japan 71 55 16 North America 79 76 3 Europe 63 80 (17) China 54 38 16 Other 62 48 14 Total 329 297 32 Consolidated wholesales Japan 69 54 15 North America 91 71 20 Europe 64 60 4 China 7 2 5 Other 58 38 20 Total 289
Slide 38: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2010 4Q Compared With FY March 2009 4Q (Billion yen) 40 FY March Other 2010 16.2 20.5 20 Cost Marketing Improvement Expense 20.5 0.5 0 Vol. & Mix Exchange 1.5 46.7 (20) (40) Improvement (Deterioration) (60) FY March 2009 (80) (64.9) Change from FY March 09 + 85.4 38
Slide 39: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA (Billion yen) 803.7 771.8 69.7 Other 78.2 616.0 216.1 557.6 600 Europe 205.9 562.1 65.6 512.4 51.6 57.4 46.9 448.0 128.9 428.2 34.0 137.5 118.0 North 231.7 114.7 48.9 America 216.5 104.2 95.5 163.3 300 122.5 137.3 164.9 106.6 100.5 258.3 235.7 217.2 Japan 271.3 286.1 183.2
Slide 40: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 803.7 771.8 73.6 Other 77.4 78.8 Parts 72.2 616.0 600 562.1 557.6 65.6 512.4 62.0 55.8 57.0 73.6 448.0 428.2 57.3 59.0 Vehicle / Parts for 59.5 67.2 442.8 493.5 overseas 56.1 442.7 production 62.3 53.1 622.2 651.3 300 319.1 379.3 318.5 0 FY March 2009 FY March 2010 1
Slide 41: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2010 Compared with Feb Forecast (Billion yen) Results 10 Improvement Other Cost 2.9 9.5 (Deterioration) Exchange Marketing Improvement Expense 9 1.5 0.0 8 Vol. & Mix 2.4 7 Feb (2.3) 6 Forecast 5.0 5 4 Change from Feb Forecast + 4.5 3 41
Slide 42: Key Data
KEY DATA Full Year (000) FY March FY March 2010 2009 Change Consolidated Wholesales Japan 219 220 (1) North America 304 348 (44) Europe 227 293 (66) China 15 17 (2) Other 198 238 (40) Total 963 1,116 (153) 42
Slide 43: Key Data
KEY DATA FY March 2011 Change from Prior Year 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Global sales volume (000) Japan 126 84 210 21 (32) (11) North America 181 177 358 23 28 51 Europe 118 108 226 (5) (8) (13) China 108 122 230 23 11 34 Other 125 121 246 19 (3) 16 Total 658 612 1,270
Slide 44: 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