Mazda Motor Corp. · TSE:7261

Mazda Motor — Q1 FY March 2019 Earnings Presentation

29 slides from Mazda Motor's earnings presentation, August 2018

  1. Slide 1: Fiscal Year March 2019 First Quarter Financial Results

    FISCAL YEAR MARCH 2019 FIRST QUARTER FINANCIAL RESULTS

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2019 First Quarter Results  Fiscal Year March 2019 Full Year Forecast  Progress of Key Initiatives Mazda Motor Corporation 1

  3. Slide 3: Highlights

    HIGHLIGHTS 【FY March 2019 First Quarter Results】  Global sales were up 7% year on year to 403,000 units, a new record for the first quarter ⁃ Sales of crossover models remained strong and the introduction of updated models boosted sales momentum ⁃ Japan, U.S. and ASEAN markets drove the strong sale

  4. Slide 4: Fiscal Year March 2019 First Quarter Results

    FISCAL YEAR MARCH 2019 FIRST QUARTER RESULTS Mazda Motor Corporation 3

  5. Slide 5: FY March 2019 Global Sales Volume

    FY MARCH 2019 GLOBAL SALES VOLUME First Quarter FY March FY March Change from (000) 2018 2019 Prior Year Volume YOY(%) Global sales volume Japan 41 49 8 19 % North America 106 116 9 9% Europe 64 67 3 5% China 71 68 (3) (4)% Other Markets 94 103 9 9% Total 377 403 26 7% <Breakdown> USA 73 80 7 10 % A

  6. Slide 6: Japan

    JAPAN  Sales were 49,000 units, up 19% year on year  Market share was 4.1%. Registered vehicle market share was 5.2%, up 1.0 point year on Updated CX-3 year  Orders for CX-5 exceeded the First Quarter Sales Volume prior year, and CX-8 further (000) contributed to sales growth 19% 49  Updated CX-

  7. Slide 7: North America

    NORTH AMERICA  Sales were 116,000 units, up 9% year on year  USA: 80,000 units, up 10％ year on year ⁃ Updated Mazda6 contributed Updated Mazda6 to volume growth ⁃ Sales of all crossover models First Quarter Sales Volume increased year on year (000) 116 106 9%  Canada: 23,000 units, up 7% year on

  8. Slide 8: Europe

    EUROPE  Sales were 67,000 units, up 5% year on year  CX-5 sales remained strong, up 40% year on year CX-5  Sales in Europe excluding Russia were 59,000 units, up 1% year on year First Quarter Sales Volume ⁃ Germany: 16,000 units, down (000) 9% year on year 5% 67 64 ⁃ UK: 8,000 units, up 4% year o

  9. Slide 9: China

    CHINA  Sales were 68,000 units, down 4% year on year  Sales of Mazda3 declined substantially due to intense competition MX-5 RF  Sales of CX-5 and other models remained robust First Quarter Sales Volume (000)  Sales of MX-5 RF began in April 100  The CX-8 was displayed at 71 (4)% 68 Beijing Mot

  10. Slide 10: Other Markets

    OTHER MARKETS  Sales were 103,000 units, up 9% year on year  Australia: 30,000 units, down 5% year on year - CX-5 sold 7,000 units, up 4% year on year despite fierce competition CX-8 - Launched in July, CX-8 is enjoying strong orders First Quarter Sales Volume  ASEAN: 32,000 units, up 24% (000) y

  11. Slide 11: FY March 2019 Financial Metrics

    FY MARCH 2019 FINANCIAL METRICS First Quarter FY March FY March Change from (Billion yen) 2018 2019 Prior Year Amount YOY(%) Revenue 802.1 873.1 71.0 9% Operating profit 39.9 33.1 (6.8) (17)% Ordinary profit 52.4 42.4 (10.0) (19)% Profit before tax 50.5 43.0 (7.5) (15)% Net income 36.6 20.6 (16.0) (

  12. Slide 12: FY March 2019 Operating Profit Change

    FY MARCH 2019 OPERATING PROFIT CHANGE FY March 2019 First Quarter vs FY March 2018 First Quarter Improvement (Billion yen) (Deterioration) Impact of increased marketing expenses, Includes hike in Investment for US sales network reduced OEM supply, raw material reforms and costs for compliance etc. p

  13. Slide 13: Fiscal Year March 2019 Full Year Forecast

    FISCAL YEAR MARCH 2019 FULL YEAR FORECAST Mazda Motor Corporation 12

  14. Slide 14: 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

  15. Slide 15: 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

  16. Slide 16: Progress of Key Initiatives

    PROGRESS OF KEY INITIATIVES  Increase volume and improve sales momentum by enhancing competitiveness through continuous product updates and next-generation model development  Start sales of CX-8 in Australia and New Zealand in July, followed by launch in China  Start new U.S. dealer support progr

  17. Slide 17: Mazda Motor Corporation

    Mazda Motor Corporation 16

  18. Slide 18: Appendix

    APPENDIX Mazda Motor Corporation 17

  19. Slide 19: Cash Flow and Net Cash

    CASH FLOW AND NET CASH FY March 2018 FY March 2019 Change from (Billion yen) Full Year First Quarter Prior FY End Cash Flow - From Operating activities 207.8 13.2 - - From Investing activities (160.0) (29.2) - - Free Cash Flow 47.8 (16.0) - Cash and Cash Equivalents 604.9 636.2 31.3 Net Cash 107.0 7

  20. Slide 20: Revenue by Geographic Area

    REVENUE BY GEOGRAPHIC AREA (Billion yen) 926.1 891.3 873.1 900 854.5 802.1 157.6 161.9 159.3 148.6 Other 136.4 183.1 179.3 156.6 600 177.0 Europe 155.8 265.8 274.8 285.5 300.5 North 288.3 300 America 319.6 254.2 264.7 256.7 Japan 221.6 0 1Q 2Q 3Q 4Q 1Q FY March 2018 FY March 2019 Mazda Motor Corpora

  21. Slide 21: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 926.1 891.3 873.1 900 854.5 69.8 802.1 63.8 62.3 63.7 68.6 68.3 Other 58.2 67.5 65.7 Parts 61.7 600 Vehicles / Parts for 759.3 787.7 745.1 723.3 Overseas 682.2 300 Production 0 1Q 2Q 3Q 4Q 1Q FY March 2018 FY March 2019 Mazda Motor Corporation 20

  22. Slide 22: Revenue Change

    REVENUE CHANGE FY March 2019 1st Quarter vs. FY March 2018 1st Quarter (Billion yen) FY March 2019 873.1 15% FY March 2018 802.1 Domestic 4% Overseas 5% 10% 9% 8% 5% 0% 0% Total Volume & Mix Exchange Mazda Motor Corporation 21

  23. Slide 23: 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

  24. Slide 24: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES First Quarter FY March FY March Change from (000) 2018 2019 Prior Year Global sales volume Volume YOY(%) Japan 41 49 8 19 % North America 106 116 9 9% Europe 64 67 3 5% China 71 68 (3) (4)% Other Markets 94 103 9 9% Total 377 403 26 7% Consolidated who

  25. Slide 25: Global Sales Volume and Consolidated Wholesales

    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

  26. Slide 26: Crossover Vehicle Ratio

    CROSSOVER VEHICLE RATIO （000 units） 1,500 Crossover vehicles 34% 39% 46% 12% 29% 27% 21% 1,000 Passenger 500 vehicles, and others - FY March 2012 2013 2014 2015 2016 2017 2018 2019 Global 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 25

  27. Slide 27: Key Data

    KEY DATA (Billion Yen) 145.0 143.0 150 Full 136.0 Year Full 104.1 100 Year 90.0 Full 87.0 Year 50 35.1 33.4 25.1 21.7 1Q 16.1 21.6 1Q 1Q 0 FY March 2018 2019 2018 2019 2018 2019 Capital Depreciation R&D Cost Expenditure Cost Mazda Motor Corporation 26

  28. Slide 28: 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 27

  29. Slide 29: 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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