Mazda Motor Corp. · TSE:7261

Mazda Motor — Q3 FY March 2020 Earnings Presentation

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

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

    FISCAL YEAR MARCH 2020 THIRD QUARTER FINANCIAL RESULTS

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2020 Nine Month Results  Fiscal Year March 2020 Full Year Forecast  Progress of Key Initiatives / Planned Sales Initiatives The overseas subsidiaries which apply US GAAP adopted ASU 2014-09 ”Revenue from Contracts with Customers” from the begin

  3. Slide 3: Highlights

    HIGHLIGHTS 【FY March 2020 Nine Month Results】  Global sales were 1,106,000 units, down 5% year on year  Launched CX-30, the second new-generation model in Europe and Japan  Revenue was ¥2,556.3 billion, operating profit was ¥32.3 billion, and net income was ¥32.4 billion  Sales quality improveme

  4. Slide 4: Fiscal Year March 2020 Nine Month Results

    FISCAL YEAR MARCH 2020 NINE MONTH RESULTS 4

  5. Slide 5: FY March 2020 Global Sales Volume

    FY MARCH 2020 GLOBAL SALES VOLUME FY March 2020 Change from Prior Year 1st 3rd Nine 1st 3rd Nine Half Quarter Month Half Quarter Month Volume Volume Volume YOY(%) Global sales volume Japan 98 40 139 (4) (7) (11) (7)% North America 202 102 305 (20) 5 (15) (5)% Europe 136 82 219 1 21 22 11 % China 109

  6. Slide 6: Japan

    JAPAN  Sales were 139,000 units, down 7% year on year  Market share was 3.8%. Registered vehicle market share was 4.9%, down 0.2 points year on year  Sales of current models including CX-5 MAZDA3 and CX-8 were down mainly due to declined demand after consumption tax hike Nine Month Sales Volume (

  7. Slide 7: North America

    NORTH AMERICA  Sales were 305,000 units, down 5% year on year  USA: 208,000 units, down 4% year on year - Sales quality continued to improve with lower fleet sales and improved transaction price CX-5 - Sales for the third quarter were 70,000 units, up 8% year on year Nine Month Sales Volume (000)

  8. Slide 8: Europe

    EUROPE  Sales were 219,000 units, up 11％ year on year  Sales in Europe excluding Russia were 195,000 units, up 14% year on year - Germany: 54,000 units, up 10% CX-30 year on year - UK: 27,000 units, up 7% year on Nine Month Sales Volume year (000) - The CX-30 contributed to the 11% 219 volume grow

  9. Slide 9: China

    CHINA  Sales were 175,000 units, down 10% year on year  Sales for the third quarter were 66,000 units, up 7% year on year  Mazda3 model switchover made progress. Sales of Mazda3 for the MAZDA6 third quarter were up year on year, driven by the new model Nine Month Sales Volume (000)  Sales trends

  10. Slide 10: Other Markets

    OTHER MARKETS  Sales were 269,000 units, down 13% year on year  Australia: 69,000 units, down 15% year on year - Tough sales environment persisted, as demand for sedan models CX-30 declined 16% year on year - CX-30 will be launched in the fourth Nine Month Sales Volume quarter (000)  ASEAN: 82,00

  11. Slide 11: FY March 2020 Financial Metrics

    FY MARCH 2020 FINANCIAL METRICS Nine Month FY March FY March Change from (Billion yen) 2019 2020 Prior Year Amount YOY(%) Revenue 2,621.3 2,556.3 (65.0) (2)% Operating profit 57.1 32.3 (24.8) (43)% Ordinary profit 82.9 50.1 (32.8) (40)% Profit before tax 77.3 47.8 (29.5) (38)% Net income 35.4 32.4 (

  12. Slide 12: FY March 2020 Operating Profit Change

    FY MARCH 2020 OPERATING PROFIT CHANGE FY March 2020 Nine Month vs. FY March 2019 Nine Month (Billion yen) Improvement - Wholesales volume declined 48,000 units (Deterioration) - Effects of reduced marketing expenses and improved per-unit 【Exchange rates】 profit: approx. ¥35 billion USD 1.1 EUR （17.2

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

    FISCAL YEAR MARCH 2020 FULL YEAR FORECAST 13

  14. Slide 14: FY March 2020 Global Sales Volume

    FY MARCH 2020 GLOBAL SALES VOLUME Full Year (Nov. Forecast) FY March FY March Change from FY March (000) 2019 2020 Prior Year Nov. Forecast 2020 Volume YOY(%) Volume Global sales volume Japan 215 204 (10) (5)% (5) 209 North America 421 425 4 1% (5) 430 Europe 270 279 10 4% (6) 285 China 247 231 (16)

  15. Slide 15: FY March 2020 Financial Metrics

    FY MARCH 2020 FINANCIAL METRICS Full Year (Nov. Forecast) FY March FY March Change from FY March (Billion yen) 2019 2020 Prior Year Nov. Forecast 2020 Amount YOY(%) Amount Revenue 3,564.2 3,500.0 (64.2) (2)% 0.0 3,500.0 Operating profit 82.3 60.0 (22.3) (27)% 0.0 60.0 Ordinary profit 116.1 70.0 (46.

  16. Slide 16: FY March 2020 Operating Profit Change

    FY MARCH 2020 OPERATING PROFIT CHANGE FY March 2020 Full Year vs. FY March 2019 Full Year (Billion yen) Improvement - Wholesales volume declined 43,000 units (Deterioration) - Effects of reduced marketing expenses and improved per-unit profit: approx. 【Exchange rates】 ¥45 billion USD (1.6) EUR （22.9

  17. Slide 17: FY March 2020 Operating Profit Change

    FY MARCH 2020 OPERATING PROFIT CHANGE FY March 2020 Full Year vs. November Forecast Improvement (Billion yen) (Deterioration) 【Exchange rates】 - Wholesales volume USD (0.5) EUR 1.5 declined 11,000 units CAD 1.7 AUD 2.2 Revised fixed cost, 100 - Revised sales mix GBP 1.8 Other 6.3 etc. Cost Nov. Impr

  18. Slide 18: Progress of Key Initiatives / Planned Sales Initiatives

    PROGRESS OF KEY INITIATIVES/ PLANNED SALES INITIATIVES 18

  19. Slide 19: Progress of Key Initiatives: New-generation product launches

    PROGRESS OF KEY INITIATIVES New-generation product launches  Following Mazda3, CX-30 started global launches - Launched in major markets including Europe, Japan, and the U.S.  Received high acclaim and awards both inside and outside Japan ※1 ※2 ※3 - Mazda3: China COTY/Thailand COTY/Women’s WCOTY ※

  20. Slide 20: Planned Sales Initiatives

    PLANNED SALES INITIATIVES 【Japan】  Build sales volume by strengthening Trade Cycle Management and encouraging trade-ins with high residual value  Expand sales by enhancing product appeals with updated CX-8 launched in November and updated CX-5 launched in January 【US】  Strengthen product value co

  21. Slide 21: Mazda Motor Corporation

    MAZDA MOTOR CORPORATION 21

  22. Slide 22: Appendix

    APPENDIX MAZDA MOTOR CORPORATION 22

  23. Slide 23: Cash Flow and Net Cash

    CASH FLOW AND NET CASH FY March 2019 FY March 2020 Change from Full Year Nine Month Prior FY End (Billion yen) Cash Flow - From Operating activities 146.7 (34.7) - - From Investing activities (131.6) (104.6) - - Free Cash Flow 15.1 (139.3) - Cash and Cash Equivalents 701.6 568.8 (132.8) Net Cash 94.

  24. Slide 24: Revenue by Geographic Area

    REVENUE BY GEOGRAPHIC AREA (Billion yen) 872.3 892.3 856.7 848.9 857.7 849.7 900 Other 159.3 169.5 129.1 127.0 150.6 141.7 Europe 156.6 175.6 178.2 179.8 184.6 185.4 600 North 299.7 263.1 271.5 258.8 278.0 America 309.7 300 Japan 256.7 267.4 273.1 285.2 259.3 217.7 0 1Q 2Q 3Q 1Q 2Q 3Q FY March 2019

  25. Slide 25: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 872.3 892.3 900 856.7 848.9 857.7 849.7 Other 62.2 63.5 69.4 57.6 63.3 58.7 65.7 68.1 Parts 67.5 65.8 66.0 65.8 600 Vehicles / Parts for 744.4 719.8 760.7 725.5 728.4 725.2 Overseas 300 Production 0 1Q 2Q 3Q 1Q 2Q 3Q FY March 2019 FY March 2020 25

  26. Slide 26: Revenue Change (9 Months)

    REVENUE CHANGE (9 MONTHS) FY March 2020 Nine Month vs. FY March 2019 Nine Month (Billion yen) 5% FY March 2020 2,556.3 FY March 2019 2,621.3 Domestic (2)% Overseas 2 % 0% 0% (2)% (3)% (5)% Total Volume & Mix Exchange 26

  27. Slide 27: Revenue Change (3 Months)

    REVENUE CHANGE (3 MONTHS) FY March 2020 3rd Quarter vs. FY March 2019 3rd Quarter (Billion yen) 8% FY March 2020 849.7 FY March 2019 892.3 4% Domestic (3)% Overseas 1% 0% (2)% (4)% (3)% (5)% (8)% Total Volume & Mix Exchange 27

  28. Slide 28: Global Sales Volume and Consolidated Wholesales (9 Months)

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES (9 MONTHS) Nine Month FY March FY March Change from (000) 2019 2020 Prior Year Global sales volume Volume YOY(%) Japan 150 139 (11) (7)% North America 320 305 (15) (5)% Europe 196 219 22 11 % China 195 175 (20) (10)% Other Markets 309 269 (40) (13)% To

  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) 2019 2020 Prior Year Nov. Forecast Global sales volume Volume YOY(%) Volume Japan 215 204 (10) (5)% (5) North America 421 425 4 1% (5) Europe 270 279 10 4% (6) China 247 231 (16) (7)% (24) Other

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

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES (3 MONTHS) Third Quarter FY March FY March Change from (000) 2019 2020 Prior Year Global sales volume Volume YOY(%) Japan 47 40 (7) (14)% North America 98 102 5 5% Europe 61 82 21 34 % China 62 66 4 7% Other Markets 107 84 (22) (21)% Total 374 376 1 0%

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

    FY MARCH 2020 FINANCIAL METRICS (3 MONTHS) Third Quarter FY March FY March Change from (Billion yen) 2019 2020 Prior Year Amount YOY(%) Revenue 892.3 849.7 (42.6) (5)% Operating profit 27.3 6.5 (20.8) (76)% Ordinary profit 29.4 16.1 (13.3) (46)% Profit before tax 28.3 15.1 (13.2) (47)% Net income 11

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

    FY MARCH 2020 OPERATING PROFIT CHANGE (3 MONTHS) FY March 2020 Third Quarter vs. FY March 2019 Third Quarter (Billion yen) Improvement 50 - Wholesales volume declined 27,000 units (Deterioration) - Reduced marketing expenses and improved per-unit profit, etc. 【Exchange rates】 USD (0.3) EUR （6.7） FY

  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) 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Global sales volume Japan 98 106 204 (4) (6) (10) North America 202 223 425 (20) 24 4 Europe 136 143 279 1 8 10 China 109 122 231

  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 1,793.4 3,500.0 (22.4) (41.8) (64.2) Operating profit 25.8 34.2 60.0 (4.0) (18.3) (22.3) Ordinary profit 34.0 36.0 70.0 (1

  35. Slide 35: Exchange Rates

    EXCHANGE RATES Change FY March 2020 from Nov. 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) 2 Euro 121 120 121 (8) (7) (8) 2 Canadian Dollar 82 83 82 (3) (2) (2) 2 Australian Dollar 75 74 75 (7) (6) (6) 2 Bri

  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 Passenger 500 vehicles, and others - 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 1,500 volume （000 units） Results Plan 36

  37. Slide 37: Key Data

    KEY DATA (Billion yen) Investment for new generation products, 150 new plant in USA, etc. 139.0 Full 134.7 130.0 Year Full 119.7 Year 100 Full 88.4 91.0 Year Nine 101.2 98.3 98.7 Month Nine Nine 69.0 66.2 66.7 50 Month Month 0 FY March 2019 2020* 2019 2020 2019 2020 Capital Depreciation R&D Cost Exp

  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

Mazda Motor — Q3 FY March 2020 Earnings Presentation on 6ix