Mazda Motor Corp. · TSE:7261
Mazda Motor — FY March 2018 Earnings Presentation
46 slides from Mazda Motor's earnings presentation, April 2018
Slide 1: Fiscal Year March 2018 Financial Results
FISCAL YEAR MARCH 2018 FINANCIAL RESULTS
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights Fiscal Year March 2018 Results Fiscal Year March 2019 Forecast Direction of Future Framework Mazda Motor Corporation 1
Slide 3: Highlights
HIGHLIGHTS 【FY March 2018 Results】 Global sales volume was 1,631,000 units, up 5% from the prior year and the highest on record ⁃ The global launch of the new CX-5 contributed to the increase in sales ⁃ Strong sales in China, Thailand and other regions drove volume growth ⁃ Increased the productio
Slide 4: Fiscal Year March 2018 Results
FISCAL YEAR MARCH 2018 RESULTS Mazda Motor Corporation 3
Slide 5: FY March 2018 Global Sales Volume
FY MARCH 2018 GLOBAL SALES VOLUME Full Year FY March FY March Change from (000) 2017 2018 Prior Year Feb. Forecast Volume YOY(%) Volume Global sales volume Japan 203 210 8 4% 0 North America 429 435 6 1% 5 Europe 262 269 7 3% 1 China 292 322 31 11 % 14 Other Markets 373 394 20 5% 11 Total 1,559 1,63
Slide 6: Japan
JAPAN Sales were 210,000 units, up 4% year on year Market share was 4.0%. Registered vehicle market share was 5.1%, up 0.2 points year on year New CX-8 New CX-5 achieved significantly higher sales than the prior year Full-year Sales Volume and contributed to full-year (000) volume growth; an u
Slide 7: North America
NORTH AMERICA Sales were 435,000 units, up 1% year on year USA: Sales were 304,000 units, up 1% year on year - Higher sales of crossovers more New CX-5 than offset the decline in sedans - Sales of new CX-5, up 29% year on year, and CX-9, up 28% year Full-year Sales Volume (000) on year, signific
Slide 8: Europe
EUROPE Sales were 269,000 units, up 3% year on year With the model’s full-scale launch, new CX-5 sales were up 17% and contributed to volume growth Updated Mazda6 Germany and Russia saw strong sales while UK sales decreased Full-year Sales Volume - Germany: 68,000 units, up 8% (000) year on ye
Slide 9: China
CHINA Sales were 322,000 units, up 11% year on year Record full-year sales results CX-4 Sales of Mazda3 remain strong despite end of tax cuts on small cars; sales of Mazda6 Full-year Sales Volume outperformed the prior year (000) 400 11% 322 Strong sales of the CX-4 and new 292 300 CX-5 cros
Slide 10: Other Markets
OTHER MARKETS Sales were 394,000 units, up 5% year on year Australia: 116,000 units, down 2% year on year - Mazda remains the country’s second highest-selling brand Mazda2 - Strong sales of CX-5 and CX-9; CX-5 was the top-selling vehicle Full-year Sales Volume in its segment (000) ASEAN: 116,0
Slide 11: FY March 2018 Financial Metrics
FY MARCH 2018 FINANCIAL METRICS Full Year FY March FY March Change from (Billion yen) 2017 2018 Prior Year Feb. Forecast Amount YOY(%) Amount Revenue 3,214.4 3,474.0 259.6 8% (26.0) Operating profit 125.7 146.4 20.7 16 % (3.6) Ordinary profit 139.5 172.1 32.6 23 % 2.1 Profit before tax 128.4 157.5 2
Slide 12: FY March 2018 Operating Profit Change
FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 Full Year vs. FY March 2017 Full Year Improvement (Billion yen) (Deterioration) Impact of reduced Includes hike in wholesale volume and raw material 200 increased marketing prices expenses in US, etc. Cost FY March Improvement R&D 2018 FY March Exc
Slide 13: FY March 2018 Operating Profit Change vs Feb. Forecast
FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 Full Year vs. Feb. Forecast (Billion yen) Improvement (Deterioration) R&D Feb. Cost Forecast Volume Cost + 4.0 Other 150.0 & Mix Improvement Exchange Results 150 + 0.5 146.4 (2.0) (0.8) (5.3) Change from Feb. Forecast (3.6) 120 Mazda Motor Corporat
Slide 14: Fiscal Year March 2019 Forecast
FISCAL YEAR MARCH 2019 FORECAST Mazda Motor Corporation 13
Slide 15: FY March 2019 Global Sales Volume
FY MARCH 2019 GLOBAL SALES VOLUME Full Year FY March FY March Change from (000) 2018 2019 Prior Year Volume YOY(%) Global sales volume Japan 210 215 5 2% North America 435 457 22 5% Europe 269 265 (4) (1)% China 322 322 0 0% Other Markets 394 403 9 2% Total 1,631 1,662 31 2% <Breakdown> USA 304 317
Slide 16: FY March 2019 Financial Metrics
FY MARCH 2019 FINANCIAL METRICS Full Year FY March FY March Change from (Billion yen) 2018 2019 Prior Year Amount YOY(%) Revenue 3,474.0 3,550.0 76.0 2% Operating profit 146.4 105.0 (41.4) (28)% Ordinary profit 172.1 130.0 (42.1) (24)% Profit before tax 157.5 120.0 (37.5) (24)% Net income 112.1 80.0
Slide 17: Exchange Rates
EXCHANGE RATES Full Year FY March FY March （Yen） 2018 2019 Change US Dollar 111 107 (4) Euro 130 130 0 Canadian Dollar 86 84 (2) Australian Dollar 86 84 (2) British Pound 147 148 1 Mazda Motor Corporation 16
Slide 18: FY March 2019 Operating Profit Change
FY MARCH 2019 OPERATING PROFIT CHANGE FY March 2019 Full Year vs. FY March 2018 Full Year (Billion yen) Improvement Increased marketing costs and reduced (Deterioration) OEM supply offset profit growth from sales and wholesale volume increase Investment for US sales network reforms and increased cos
Slide 19: Summary
SUMMARY Forecast not to achieve Structural Reform Stage 2 final-year profit target Structural Reform Stage 2 Final year FY March 2019 Targets Announced in April 2017 Current forecast Global sales volume 1.65 million units 1.662 million units Operating ROS 5% or more 3.0% Equity ratio 45% or more 4
Slide 20: Direction of Future Framework
DIRECTION OF FUTURE FRAMEWORK Review of Structural Reform Plan and Structural Reform Stage 2 (Covering seven years from FY March 2013 - 2019) Direction of Future Framework Mazda Motor Corporation 19
Slide 21: Review of Structural Reform Plan & Stage 2 – Quantitative and Qualitative Growth
REVIEW OF STRUCTURAL REFORM PLAN & STRUCTURAL REFORM STAGE 2 – QUANTITATIVE AND QUALITATIVE GROWTH Global sales volume: Achieved stable growth of 50,000 units/year Structural Reform Plan Structural Reform Stage 2 1.53 mil units 1.66 mil units 1.25 mil units FY12/3 FY13/3 FY14/3 FY15/3 FY16/3 FY17/
Slide 22: Review of Structural Reform Plan & Stage 2 – Quantitative and Qualitative Growth
REVIEW OF STRUCTURAL REFORM PLAN & STRUCTURAL REFORM STAGE 2 – QUANTITATIVE AND QUALITATIVE GROWTH Cost improvement through Monotsukuri Innovation and establishment of global production footprint - Highly efficient development and production through common architecture and computer modeling-based
Slide 23: Review of Structural Reform Plan and Structural Reform Stage 2
REVIEW OF STRUCTURAL REFORM PLAN AND STRUCTURAL REFORM STAGE 2 Structural Reform Plan & Structural Reform Stage 2 Forecast not to achieve 【Countermeasures】 final year profit target -Direction of Future Framework Raise competitiveness through next-generation Achieve both Per-unit profit fell short
Slide 24: Development and Introduction of Next-Generation Products & New Technologies
DIRECTION OF FUTURE FRAMEWORK: DEVELOPMENT AND INTRODUCTION OF NEXT-GENERATION PRODUCTS & NEW TECHNOLOGIES Highly competitive new product lineup and increased production capacity SKYACTIV (Gen1) SKYACTIV (Gen2) New product lineup Small Products (CX-3/new CX, etc.） Architecture Bundled planning Lar
Slide 25: Bundled Planning: Small Products and Large Products
DIRECTION OF FUTURE FRAMEWORK: DEVELOPMENT AND INTRODUCTION OF NEXT-GENERATION PRODUCTS & NEW TECHNOLOGIES Optimize product strategies in terms of customer needs, segment characteristics, profit, costs, etc., by dividing next-generation products into small and large architectures New product str
Slide 26: Accelerate Sales Network Reforms (Example of the US)
DIRECTION OF FUTURE FRAMEWORK: ACCELERATE SALES NETWORK REFORMS (Example of the US) Accelerate initiatives to strengthen the U.S. sales networks and make sales of 400,000 units per year possible Actions in 2016 & 2017 (Business turnaround, reestablish sales network) - Reestablishing sales network
Slide 27: Accelerate Sales Network Reforms (Actions 2018 to 2021)
DIRECTION OF FUTURE FRAMEWORK: ACCELERATE SALES NETWORK REFORMS (Example of the US) Actions in 2018 to 2021 (execute network enhancement, focus on growth in priority markets) - Promote qualitative/quantitative growth through higher brand engagement - Increase investment in network reestablishment.
Slide 28: Successful Alliances
DIRECTION OF FUTURE FRAMEWORK: SUCCESSFUL ALLIANCES Next-generation technology development and alliances Advance the efficiency of development processes using computer modeling-based development and Bundled Planning Increase competitiveness of internal combustion engines by advancing SKYACTIV en
Slide 29: Investment for Growth
DIRECTION OF FUTURE FRAMEWORK: INVESTMENT FOR GROWTH Generate cash flow and invest for growth to establish a 2 million-unit production framework Invest around ¥250 billion for future growth, including U.S. plant (incremental to normal investment) Maximize production efficiency (global swing pr
Slide 30: For Stronger Growth from FY March 2022
DIRECTION OF FUTURE FRAMEWORK: FOR STRONGER GROWTH FROM FY MARCH 2022 Over next 3 years, build a foundation for strong profit growth from FY March 2022 - Profit growth limited due to increased costs from increased competition and regulatory compliance - Maintain volume growth at 50,000 units per y
Slide 31: Mazda Motor Corporation
Mazda Motor Corporation 30
Slide 32: Appendix
APPENDIX Mazda Motor Corporation 31
Slide 33: Cash Flow and Net Cash
CASH FLOW AND NET CASH FY March 2017 FY March 2018 Change from (Billion yen) Full Year Full Year Prior FY End Cash Flow - From Operating activities 161.1 207.8 - - From Investing activities (63.8) (160.0) - - Free Cash Flow 97.3 47.8 - Cash and Cash Equivalents 526.9 604.9 78.0 Net Cash 35.4 107.0 7
Slide 34: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA (Billion yen) 926.1 891.3 900 865.8 854.5 802.3 802.1 157.6 776.2 770.1 161.9 144.8 148.6 130.4 136.4 Other 125.6 132.7 183.1 149.6 179.3 600 140.6 177.0 Europe 154.1 155.8 145.4 264.0 265.8 285.5 North 236.0 291.6 274.8 288.3 America 281.4 300 307.4 319.6 Japan 215.1 256.
Slide 35: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 926.1 865.8 891.3 900 854.5 69.8 802.3 802.1 63.8 776.2 770.1 66.4 63.7 68.6 68.3 58.0 63.2 58.2 Other 56.1 56.4 67.5 58.5 61.7 Parts 57.4 57.4 600 Vehicles / Parts for 759.3 787.7 736.2 723.3 685.8 682.2 300 Overseas 662.8 656.3 Production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 36: Revenue Change (Full Year)
REVENUE CHANGE FY March 2018 Full Year vs. FY March 2017 Full Year (Billion yen) FY March 2018 3,474.0 FY March 2017 3,214.4 Domestic 1% Overseas 3% 10% 8% 5% 4% 4% 0% Total Volume & Mix Exchange Mazda Motor Corporation 35
Slide 37: Revenue Change (4th Quarter)
REVENUE CHANGE FY March 2018 4th Quarter vs. FY March 2017 4th Quarter (Billion yen) FY March 2018 926.1 15% FY March 2017 865.8 Domestic 1% Overseas 5% 10% 7% 6% 5% 1% 0% Total Volume & Mix Exchange Mazda Motor Corporation 36
Slide 38: Global Sales Volume and Consolidated Wholesales (4th Quarter)
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Fourth Quarter FY March FY March Change from (000) 2017 2018 Prior Year Global sales volume Volume YOY(%) Japan 71 71 1 1% North America 98 114 16 16 % Europe 71 76 5 7% China 65 77 13 20 % Other Markets 92 107 13 13 % Total 397 445 47 12 % Consolidate
Slide 39: FY March 2018 Financial Metrics (4th Quarter)
FY MARCH 2018 FINANCIAL METRICS Fourth Quarter FY March FY March Change from (Billion yen) 2017 2018 Prior Year Amount YOY(%) Revenue 865.8 926.1 60.3 7% Operating profit 23.7 39.3 15.6 66 % Ordinary profit 21.6 37.3 15.7 73 % Profit before tax 17.7 32.7 15.0 85 % Net income 13.9 27.2 13.3 0 96 % Op
Slide 40: FY March 2018 Operating Profit Change (4th Quarter)
FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 4th Quarter vs. FY March 2017 4th Quarter (Billion yen) Improvement 50 (Deterioration) FY March Cost 2018 Other Improvement R&D 39.3 + 6.0 Cost + 6.6 Exchange +8.5 FY March Volume (5.7) 2017 & Mix 23.7 25 +0.2 Change from Prior Year 15.6 0 Mazda Mo
Slide 41: Global Sales Volume and Consolidated Wholesales (FY2018)
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from (000) 2017 2018 Prior Year Feb. Forecast Global sales volume Volume YOY(%) Volume Japan 203 210 8 4% 0 North America 429 435 6 1% 5 Europe 262 269 7 3% 1 China 292 322 31 11 % 14 Other Markets 373 394 20 5% 11 To
Slide 42: Global Sales Volume and Consolidated Wholesales (FY2019 Forecast)
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from (000) 2018 2019 Prior Year Global sales volume Volume YOY(%) Japan 210 215 5 2% North America 435 457 22 5% Europe 269 265 (4) (1)% China 322 322 0 0% Other Markets 394 403 9 2% Total 1,631 1,662 31 2% Consolidat
Slide 43: Crossover Vehicle Ratio
CROSSOVER VEHICLE RATIO （000 units） 1,500 Crossover vehicles 34% 39% 46% 12% 28% 27% 21% 1,000 Passenger 500 vehicles, and others - FY March 2012 2013 2014 2015 2016 2017 2018 2019 Globa sales 1,247 1,235 1,331 1,397 1,534 1,559 1,631 1,662 volume (000 units) Results Plan Mazda Motor Corporation 42
Slide 44: Key Data
KEY DATA (Billion yen) (Plan） (Plan） 150 145.0 143.0 136.0 126.9 104.1 (Plan） 94.4 90.0 100 87.0 82.4 50 0 FY March 2017 2018 2019 2017 2018 2019 2017 2018 2019 Capital Depreciation R&D Cost Expenditure Cost Mazda Motor Corporation 43
Slide 45: Dividend Payment
DIVIDEND PAYMENT Trend of dividends per share Interim dividends 35 35 35 Year-end dividends 30 20 20 20 15 (forecast） 10 15 15 15 15 10 1 FY March 2014 FY March 2015 FY March 2016 FY March 2017 FY March 2018 FY March 2019 Results Plan Note) A share consolidation was implemented on common stock with
Slide 46: 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