Mazda Motor Corp. · TSE:7261

Mazda Motor — Q1 FY March 2020 Earnings Presentation

32 slides from Mazda Motor's earnings presentation, August 2019

  1. Slide 1: Fiscal Year March 2020 First Quarter Financial Results

    FISCAL YEAR MARCH 2020 FIRST QUARTER FINANCIAL RESULTS

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2020 First Quarter Results  Fiscal Year March 2020 Full Year Forecast  Progress of Key Initiatives  Initiatives from Second Quarter The overseas subsidiaries which apply US GAAP adopted ASU 2014-09 ”Revenue from Contracts with Customers” from

  3. Slide 3: Highlights

    HIGHLIGHTS 【FY March 2020 First Quarter Results】  Global sales were 353,000 units, down 12% year on year  Revenue was ¥848.9 billion, operating profit was ¥7 billion, and net income was ¥5.2 billion 【FY March 2020 Full Year Forecast】  Full year forecast of global sales volume and profits remain u

  4. Slide 4: Fiscal Year March 2020 First Quarter Results

    FISCAL YEAR MARCH 2020 FIRST QUARTER RESULTS 3

  5. Slide 5: FY March 2020 Global Sales Volume

    FY MARCH 2020 GLOBAL SALES VOLUME First Quarter FY March FY March Change from (000) 2019 2020 Prior Year Volume YOY(%) Global sales volume Japan 49 39 (10) (20)% North America 116 100 (16) (14)% Europe 67 67 0 0% China 68 54 (15) (21)% Other Markets 103 93 (10) (10)% Total 403 353 (50) (12)% <Breakd

  6. Slide 6: Japan

    JAPAN  Sales were 39,000 units, down 20% year on year  Market share was 3.2%, and registered vehicle market share was 3.9%, down 1.3 points year on year Mazda3  In May, we projected a year-on- year sales decline due to the First Quarter Sales Volume Mazda3 model switchover and (000) reduced new-c

  7. Slide 7: North America

    NORTH AMERICA  Sales were 100,000 units, down 14% year on year  USA: 68,000 units, down 15% year on year - In May, we expected to continue curbing incentives, offset reduced fleet sales mainly with CX-5 and new Mazda3 and maintain sales on par with the prior year CX-5 - Sales of CX-5 and Mazda3 fe

  8. Slide 8: Europe

    EUROPE  Sales were 67,000 units, on par with the prior year  Sales in Europe excluding Russia were 60,000 units, up 2% year on year - Germany: 17,000 units, up 6% Mazda6 year on year - UK: 8,000 units, up 8％ year on First Quarter Sales Volume year (000) - Sales of new Mazda3 were strong, incentive

  9. Slide 9: China

    CHINA  Sales were 54,000 units, down 21% year on year  In May, we projected a year-on- year sales decline in light of contracting demand, continuing fierce competition, and the fact that mainstay models are pre- CX-4 update First Quarter Sales Volume  Sales fell short of the plan as (000) sales o

  10. Slide 10: Other Markets

    OTHER MARKETS  Sales were 93,000 units, down 10% year on year  Australia: 27,000 units, down 9％ year on year - Maintained market share on par with the prior year despite CX-8 declining demand and intensifying competition First Quarter Sales Volume - Orders of new Mazda3 were (000) strong with a hi

  11. Slide 11: FY March 2020 Financial Metrics

    FY MARCH 2020 FINANCIAL METRICS First Quarter FY March FY March Change from (Billion yen) 2019 2020 Prior Year Amount YOY(%) Revenue 872.3 848.9 (23.4) (3)% Operating profit 32.7 7.0 (25.7) (79)% Ordinary profit 42.1 9.1 (33.0) (78)% Profit before tax 42.7 8.6 (34.1) (80)% Net income 20.6 5.2 (15.4)

  12. Slide 12: FY March 2020 Operating Profit Change

    FY MARCH 2020 OPERATING PROFIT CHANGE FY March 2020 First Quarter vs FY March 2019 First Quarter (Billion yen) Improvement FY March (Deterioration) 2019 32.7 Volume & mix Includes hike in Quality cost (Power-steering 30 raw material litigation), depreciation costs Exchange prices and costs related t

  13. Slide 13: Fiscal Year March 2020 Full Year Forecast

    FISCAL YEAR MARCH 2020 FULL YEAR FORECAST 12

  14. Slide 14: FY March 2020 Global Sales Volume

    FY MARCH 2020 GLOBAL SALES VOLUME Full Year FY March FY March Change from (000) 2019 2020 Prior Year Volume YOY(%) Global sales volume Japan 215 223 9 4% North America 421 456 35 8% Europe 270 286 17 6% China 247 265 18 7% Other Markets 409 387 (21) (5)% Total 1,561 1,618 57 4% <Breakdown> USA 287 3

  15. Slide 15: FY March 2020 Financial Metrics

    FY MARCH 2020 FINANCIAL METRICS Full Year FY March FY March Change from (Billion yen) 2019 2020 Prior Year Amount YOY(%) Revenue 3,564.2 3,700.0 135.8 4% Operating profit 82.3 110.0 27.7 34 % Ordinary profit 116.1 125.0 8.9 8% Profit before tax 107.6 117.0 9.4 9% Net income 63.2 80.0 16.8 27 % Opera

  16. Slide 16: Progress of Key Initiatives

    PROGRESS OF KEY INITIATIVES  New Mazda3 has successfully increased the ratio of higher-grade models and per-unit revenue in markets where it has been introduced  Reducing incentives globally and promoting sales with focus on communication of product value  In April, we started building the new CX

  17. Slide 17: Initiatives from Second Quarter

    INITIATIVES FROM SECOND QUARTER 16

  18. Slide 18: Initiatives from Second Quarter

    INITIATIVES FROM SECOND QUARTER 【Japan】  Enhance trade cycle management and take advantage of high residual values to improve repurchase rates and increase conquest sales  Effectively communicate Mazda’s unique points, such as the high-quality feel and the appeals of the diesel CX-5 and CX-8 【USA】

  19. Slide 19: Initiatives from Second Quarter

    INITIATIVES FROM SECOND QUARTER 【Global】  Continue and strengthen initiatives to improve sales quality by reducing incentives and shifting to a higher price zone  Enhance efforts such as sales actions to address stronger yen, additional cost improvements, and fixed cost efficiency  Successfully l

  20. Slide 20: Mazda Motor Corporation

    MAZDA MOTOR CORPORATION 19

  21. Slide 21: Appendix

    APPENDIX MAZDA MOTOR CORPORATION 20

  22. Slide 22: Cash Flow and Net Cash

    CASH FLOW AND NET CASH FY March 2019 FY March 2020 Change from (Billion yen) Full Year First Quarter Prior FY End Cash Flow - From Operating activities 146.7 3.2 - - From investing activities (131.6) (40.9) - - Free Cash Flow 15.1 (37.8) - Cash and Cash Equivalents 701.6 619.8 (81.8) Net Cash 94.6 2

  23. Slide 23: Revenue by Geographic Area

    REVENUE BY GEOGRAPHIC AREA (Billion yen) 872.3 848.9 900 Other 159.3 141.7 Europe 156.6 179.8 600 North 299.7 America 309.7 300 Japan 256.7 217.7 0 1Q 1Q FY March 2019 FY March 2020 22

  24. Slide 24: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 872.3 900 848.9 Other 62.2 57.6 Parts 65.7 65.8 600 Vehicles / Parts for 744.4 725.5 Overseas 300 Production 0 1Q 1Q FY March 2019 FY March 2020 23

  25. Slide 25: Revenue Change

    REVENUE CHANGE FY March 2020 1st Quarter vs. FY March 2019 1st Quarter (Billion yen) 5% FY March 2020 848.9 Domestic (3)% FY March 2019 872.3 Overseas ２ % 0% (1)% (2)% (3)% (5)% Total Volume & Mix Exchange Rates 24

  26. Slide 26: FY March 2020 Operating Profit Change

    FY MARCH 2020 OPERATING PROFIT CHANGE FY March 2020 Full Year vs. FY March 2019 Full Year Improvement (Billion yen) Includes hike in (Deterioration) raw material Increase wholesale prices volume and improve Investment for US sales network marketing expenses, etc. reforms, depreciation costs and cost

  27. Slide 27: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES First Quarter FY March FY March Change from (000) 2019 2020 Prior Year Global sales volume Volume YOY(%) Japan 49 39 (10) (20)% North America 116 100 (16) (14)% Europe 67 67 0 0% China 68 54 (15) (21)% Other Markets 103 93 (10) (10)% Total 403 353 (50)

  28. Slide 28: FY March 2020 Global Sales Volume

    FY MARCH 2020 GLOBAL SALES VOLUME (Forecast as of May Pub.) FY March FY March Change FY March Change 2019 2020 from 2020 from (000) First Quarter First Quarter Prior Year First Quarter Forecast Volume Volume Global sales volume Japan 49 39 (10) 43 (4) North America 116 100 (16) 113 (14) Europe 67 67

  29. Slide 29: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from (000) 2019 2020 Prior Year Global sales volume Volume YOY(%) Japan 215 223 9 4% North America 421 456 35 8% Europe 270 286 17 6% China 247 265 18 7% Other Markets 409 387 (21) (5)% Total 1,561 1,618 57 4% Wholesa

  30. Slide 30: Key Data

    KEY DATA (Billion yen) 159.0 150 139.0 134.7 Full 119.7 Year Full 95.0 100 Year Full 88.4 Year 50 33.8 36.3 33.4 22.4 1Q 21.7 1Q 16.1 1Q 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 accounti

  31. Slide 31: Exchange Rates

    EXCHANGE RATES Full Year FY March FY March Change from （Yen） 2019 2020 Prior Year US Dollar 111 110 (1) Euro 128 126 (2) Canadian Dollar 85 84 (1) Australian Dollar 81 79 (2) British Pound 146 147 1 30

  32. Slide 32: 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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