Mazda Motor Corp. · TSE:7261

Mazda Motor — H1 FY March 2017 Earnings Presentation

36 slides from Mazda Motor's earnings presentation, November 2016

  1. Slide 1: Fiscal Year March 2017 First Half Financial Results

    FISCAL YEAR MARCH 2017 FIRST HALF FINANCIAL RESULTS

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2017 First Half Results  Fiscal Year March 2017 Full Year Forecast  Structural Reform Stage 2 Progress of Key Initiatives/Future Initiatives Mazda Motor Corporation 1

  3. Slide 3: Highlights

    HIGHLIGHTS 【FY March 2017 - First Half Results】  Global sales volume for the period was a record 775,000 units. The new CX-9 and CX-4, and updated Mazda3 and Mazda6 contributed to sales volume and profit  Revenue was ¥1,546.3 billion, operating profit was ¥88.3 billion and net income was ¥56.1 bil

  4. Slide 4: Fiscal Year March 2017 First Half Results

    FISCAL YEAR MARCH 2017 FIRST HALF RESULTS Mazda Motor Corporation 3

  5. Slide 5: FY March 2017 Global Sales Volume

    FY MARCH 2017 GLOBAL SALES VOLUME First Half FY March FY March Change from (000) 2016 2017 Prior Year Global sales volume Volume YOY(%) Japan 120 93 (27) (23)% North America 233 224 (9) (4)% Europe 124 134 10 8% China 109 133 24 22% Other Markets 178 191 13 7% Total 764 775 11 1% <Breakdown> USA 164

  6. Slide 6: Japan

    JAPAN  Sales were 93,000 units, down 23% year on year  Market share was 4.0%, down 1.2 points year on year. Registered vehicle market share was 4.8%, down 2.0 Mazda6 points year on year  Mazda3 and Mazda6 were First Half Sales Volume updated and sales are (000) increasing 150 (23)%  Updated Mazd

  7. Slide 7: North America

    NORTH AMERICA  Sales were 224,000 units, down 4% year on year  USA: Sales were 160,000 units, down 2% year on year - Launch updated Mazda3 and Mazda6 to strengthen sales in New CX-9 car segment - Sales of new CX-9, which First Half Sales Volume started in earnest in June, are (000) promising with

  8. Slide 8: Europe

    EUROPE  Sales were 134,000 units, up 8% year on year  Strong sales of CX-3 and MX-5 contributed to volume growth  Sales in Europe excluding Russia grew 12% year on year Mazda3 to 123,000 units - Germany: 33,000 units, First Half Sales Volume up 9% year on year (000) - UK: 23,000 units, down 3% 15

  9. Slide 9: China

    CHINA New CX-4  Sales were 133,000 units, up 22% year on year  Mazda3 led sales, thanks in part to the compact car tax reduction scheme  New CX-4 was launched in June and is selling well  Updated Mazda6 was launched First Half Sales Volume in August and is also selling (000) well 150 133 22%  U

  10. Slide 10: Other Markets

    OTHER MARKETS  Sales were 191,000 units, up 7% year on year  Australia: Sales were 60,000 units, up 4% year on year, and market share reached 10％ - Second highest-selling brand CX-3 - CX-3 and CX-5 are the best sellers in their segments First Half Sales Volume  ASEAN: Sales were 54,000 units, (00

  11. Slide 11: FY March 2017 Financial Metrics

    FY MARCH 2017 FINANCIAL METRICS First Half FY March FY March Change from (Billion yen) 2016 2017 Prior Year Amount YOY(%) Revenue 1,700.5 1,546.3 (154.2) (9)% Operating profit 125.9 88.3 (37.6) (30)% Ordinary profit 121.1 82.6 (38.4) (32)% Profit before tax 116.3 76.2 (40.2) (35)% Net income 88.3 56

  12. Slide 12: Operating Profit Change

    FY March 2017 OPERATING PROFIT CHANGE FY March 2017 1st Half vs. FY March 2016 1st Half (Billion yen) Improvement Improved profitability with (Deterioration) new and updated models despite lower volume in 【Exchange】 Japan, etc. USD (7.3) EUR (14.3) FY March CAD (9.8) AUD (14.2) 150 2016 Volume & GBP

  13. Slide 13: Fiscal Year March 2017 Full Year Forecast

    FISCAL YEAR MARCH 2017 FULL YEAR FORECAST Mazda Motor Corporation 12

  14. Slide 14: FY March 2017 Global Sales Volume

    FY MARCH 2017 GLOBAL SALES VOLUME FY March 2017 Change from (000) 1st Half 2nd Half Full Year Prior Year Apr. Forecast YOY(%) Volume Global sales volume Japan 93 117 210 (10)% (23) North America 224 225 449 3% 0 Europe 134 126 260 1% 0 China 133 126 259 10% 21 Other Markets 191 181 372 0% 2 Total 77

  15. Slide 15: FY March 2017 Financial Metrics

    FY MARCH 2017 FINANCIAL METRICS FY March 2017 Change from (Billion yen) 1st Half 2nd Half Full Year Prior Year Apr. Forecast Revenue 1,546.3 1,603.7 3,150.0 (256.6) (130.0) Operating profit 88.3 61.7 150.0 (76.8) (20.0) Ordinary profit 82.6 72.4 155.0 (68.6) (21.0) Profit before tax 76.2 67.8 144.0

  16. Slide 16: Operating Profit Change: Full Year vs. Full Year

    FY March 2017 OPERATING PROFIT CHANGE FY March 2017 Full Year vs. FY March 2016 Full Year (Billion yen) Improve volume and Improvement profitability by introducing (Deterioration) new products and updated models 300 【Exchange】 Volume & FY March Mix USD (22.8) EUR (29.4) 2016 + 19.0 Exchange CAD (16.

  17. Slide 17: Operating Profit Change: Full Year vs. April Forecast

    FY March 2017 OPERATING PROFIT CHANGE FY March 2017 Full Year vs. April Forecast (Billion yen) Improvement (Deterioration) Improve profitability by introducing new products 200 and updated models 【Exchange】 USD (7.2) EUR (14.5) Volume & CAD (3.1) AUD (9.2) Apr. Mix GBP (11.1) Other 3.1 Forecast Exch

  18. Slide 18: Progress of Key Initiatives / Future Initiatives

    Structural Reform Stage 2 PROGRESS OF KEY INITIATIVES / FUTURE INITIATIVES Mazda Motor Corporation 17

  19. Slide 19: Product and Technology

    PRODUCT AND TECHNOLOGY Structural Reform Stage 2  Expand and continue to advance the SKYACTIV lineup • Good progress in the development and introduction of new models, including CX-9 and CX-4, and updated models with new-generation vehicle dynamics control technologies • Began production of new MX-

  20. Slide 20: Global Sales and Network Enhancement

    GLOBAL SALES AND NETWORK ENHANCEMENT Structural Reform Stage 2  Maintain volume growth at 50,000 units per year by launching new and updated models and strengthening initiatives to improve brand value  Increase net revenue, reduce incentives and improve residual values by ensuring good penetration

  21. Slide 21: Global Production and Cost Improvement

    GLOBAL PRODUCTION AND COST IMPROVEMENT Structural Reform Stage 2  Deploy Monotsukuri Innovation globally to strengthen cost improvements  Establish a production system which enables plants to supplement each other • Good progress in efforts to increase production flexibility for crossover vehicles

  22. Slide 22: Strengthen Financial Base and Shareholder Returns

    STERNGHTEN FIANACIAL BASE AND Structural Reform Stage 2 SHAREHOLDER RETURNS  Generate stable profit and cash flow by steadily increasing sales volume and improving brand value  Improve balance-sheet, including equity ratio and net debt  Strengthen financial base while advancing R&D and other inve

  23. Slide 23: Mazda Motor Corporation

    Mazda Motor Corporation 22

  24. Slide 24: Appendix

    APPENDIX Mazda Motor Corporation 23

  25. Slide 25: Cash Flow and Net Debt

    CASH FLOW AND NET DEBT FY March 2016 FY March 2017 Change from (Billion yen) Full Year 2nd Quarter Prior FY End Cash Flow - From Operating activities 262.8 80.8 - - From Investing activities (108.1) (12.1) - - Free Cash Flow 154.7 68.6 - Cash and Cash Equivalents 568.7 557.3 (11.5) Net Debt 48.4 (17

  26. Slide 26: Revenue by Region

    REVENUE BY REGION (Billion yen) 894.5 900 847.3 858.8 806.0 135.8 776.2 770.1 151.6 143.7 Other 126.7 125.6 132.8 183.8 Europe 166.6 600 144.0 180.6 154.1 145.4 304.6 277.3 North 291.0 284.6 236.0 281.4 America 300 Japan 244.3 270.3 271.2 256.0 230.5 215.1 0 1Q 2Q 3Q 4Q 1Q 2Q FY March 2016 FY March

  27. Slide 27: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 894.5 900 847.3 858.8 806.0 56.9 61.8 56.8 69.3 776.2 770.1 Other 53.5 61.6 61.8 56.1 56.5 Parts 59.0 57.3 57.4 600 Vehicles / 775.8 Parts for 693.5 728.9 727.7 662.8 656.3 300 Overseas Production 0 1Q 2Q 3Q 4Q 1Q 2Q FY March 2016 FY March 2017 Mazda Motor Corporatio

  28. Slide 28: Revenue Change: 1st Half vs. 1st Half

    REVENUE CHANGE FY March 2017 1st Half vs. FY March 2016 1st Half (Billion yen) FY March 2017 1,546.3 Japan (4)% FY March 2016 1,700.5 Overseas 6% 6% 2% 1% (4)% (9)% (9)% (11)% (14)% Total Volume & Mix Exchange Mazda Motor Corporation 27

  29. Slide 29: Revenue Change: 2nd Quarter vs. 2nd Quarter

    REVENUE CHANGE FY March 2017 2nd Quarter vs. FY March 2016 2nd Quarter (Billion yen) Japan (3)% FY March 2017 770.1 Overseas 1% FY March 2016 894.5 12% 2% (2)% (8)% (12)% (14)% (18)% Total Volume & Mix Exchange Mazda Motor Corporation 28

  30. Slide 30: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Second Quarter FY March FY March Change from (000) 2016 2017 Prior Year Global sales volume Volume YOY(%) Japan 63 54 (9) (15)% North America 117 111 (6) (5)% Europe 70 68 (2) (2)% China 52 74 22 43% Other Markets 92 93 1 1% Total 394 400 6 1% Consolid

  31. Slide 31: Operating Profit Change: 2nd Quarter vs. 2nd Quarter

    FY March 2017 OPERATING PROFIT CHANGE FY March 2017 2nd Quarter vs. FY March 2016 2nd Quarter Improvement (Billion yen) (Deterioration) 【Exchange】 USD (2.6) EUR (8.9) FY March CAD (3.8) AUD (6.7) 2016 Volume & GBP (4.4) Other (4.5) 72.6 Mix 75 Exchange Cost (10.8) Improvement Marketing + 16.5 Expens

  32. Slide 32: Exchange Rates

    EXCHANGE RATES Full Year FY March FY March (Yen) 2016 2017 Change US Dollar 120 104 (16) Euro 133 116 (17) Canadian Dollar 92 80 (12) Australian Dollar 89 79 (10) British Pound 181 136 (45) Mazda Motor Corporation 31

  33. Slide 33: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES FY March 2017 Change from Prior Year (000) 1st Half 2nd Half Full Year 1st Half 2nd Half Full year Global sales volume Japan 93 117 210 (27) 5 (22) North America 224 225 449 (9) 20 11 Europe 134 126 260 10 (7) 3 China 133 126 259 24 0 24 Other Markets

  34. Slide 34: Key Data

    KEY DATA (Billion yen) 150 125.0 Full 116.6 Year 105.0 100 Full 89.2 Year Full 79.0 83.0 Year 50 55.0 58.8 First Half First First 38.8 39.4 36.9 35.8 Half Half 0 FY March FY March FY March FY March FY March FY March 2016 2017 2016 2017 2016 2017 Capital Depreciation R&D Cost Expenditures Cost Mazda

  35. Slide 35: Dividend Payment

    DIVIDEND PAYMENT Trend of dividends per share Interim dividends 35 Year-end dividends 30 20 （Plan) 15 10 15 15 10 1 FY March 2014 FY March 2015 FY March 2016 FY March 2017 Result Plan Note) A share consolidation was implemented on common stock with a ratio of five shares to one share on August 1, 20

  36. Slide 36: 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

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