Mazda Motor Corp. · TSE:7261
Mazda Motor — FY March 2017 Earnings Presentation
40 slides from Mazda Motor's earnings presentation, April 2017
Slide 1: Fiscal Year March 2017 Financial Results
FISCAL YEAR MARCH 2017 FINANCIAL RESULTS
Slide 2: Presentation Outline
PRESENTATION OUTLINE Consolidated Financial Results and Forecast Summary Fiscal Year March 2017 Results Fiscal Year March 2018 Forecast Structural Reform Stage 2 Progress of Key Initiatives Mazda Motor Corporation 1
Slide 3: Consolidated Financial Results and Forecast Summary
CONSOLIDATED FINANCIAL RESULTS AND FORECAST SUMMARY 【FY March 2017 Results】 Global sales volume was 1,559,000 units, up 2% from the prior year and the highest on record Revenue was ¥3,214.4 billion. Operating profit was ¥125.7 billion. Net income was ¥93.8 billion Equity ratio was 41%. Net cas
Slide 4: Fiscal Year March 2017 Results
FISCAL YEAR MARCH 2017 RESULTS Mazda Motor Corporation 3
Slide 5: FY March 2017 Global Sales Volume
FY MARCH 2017 GLOBAL SALES VOLUME Full Year (Feb. Forecast) FY March FY March Change from FY March (000) 2016 2017 Prior Year 2017 Global sales volume Volume (%) Japan 232 203 (29) (13)% 205 North America 438 429 (9) (2)% 432 Europe 257 262 5 2% 260 China 235 292 57 24% 281 Other Markets 372 373 1 1
Slide 6: Japan
JAPAN Sales were 203,000 units, down 13% year on year Market share was 4.0％, down 0.7 points year on year. Registered vehicle market share was 4.9％, down 1.2 points New CX-5 Sales momentum improved with the introduction of the new MX-5 RF in December and new CX-5 in February Full Year Sales Vo
Slide 7: North America
NORTH AMERICA Sales were 429,000 units, down 2% year on year USA: Sales were 302,000 units, down 1% year on year - While crossover sales maintain momentum, the market for passenger cars remains tough New CX-9 - High-grade models of new CX-9 are selling well, contributing to improved Full Year Sa
Slide 8: Europe
EUROPE Sales were 262,000 units, up 2% year on year Sales of CX-3 and MX-5 contributed to volume growth Sales in Europe excluding Russia grew 3% year on year to 240,000 units Mazda2 - Germany: 63,000 units, up 5% year on year - UK: 45,000 units, down 7% year on year Full Year Sales Volume Sa
Slide 9: China
CHINA Sales were 292,000 units, up 24% year on year Achieved record sales volume Mazda3 led sales, thanks in part to the compact car tax reduction scheme New CX-4 Updated Mazda6 and CX-5 Full Year Sales Volume contributed to sales growth (000) The new CX-4 won “2017 China Car 292 Design of
Slide 10: Other Markets
OTHER MARKETS Sales were 373,000 units, up 1% year on year Australia: Sales were record high at 118,000 units, up 2% year on year - Second highest-selling brand - CX-3 and CX-5 are the best sellers Mazda6 in their respective segments ASEAN: Sales were 105,000 units, up Full Year Sales Volume 4
Slide 11: FY March 2017 Financial Metrics
FY MARCH 2017 FINANCIAL METRICS Full Year FY March FY March Change from Change from (Billion yen) 2016 2017 Prior Year Feb. Forecast Amount (%) Amount Revenue 3,406.6 3,214.4 (192.2) (6)% 14.4 Operating profit 226.8 125.7 (101.1) (45)% (4.3) Ordinary profit 223.6 139.5 (84.1) (38)% 4.5 Profit before
Slide 12: FY March 2017 Operating Profit Change
FY MARCH 2017 OPERATING PROFIT CHANGE FY March 2017 Full Year vs. FY March 2016 Full Year Improvement Impact of reduced wholesale volume in 【Exchange】 (Deterioration) (Billion yen) Japan and North America, etc. USD (18.5) EUR (26.1) 300 CAD (14.1) AUD (18.9) FY March GBP (19.8) Other (5.3) 2016 Volu
Slide 13: FY March 2017 Operating Profit Change
FY MARCH 2017 OPERATING PROFIT CHANGE FY March 2017 Full Year vs. Feb. Forecast (Billion yen) Improvement 150 (Deterioration) Impact of reduced wholesale volume in Japan and North America, etc. Feb. Forecast Volume 130.0 & Mix Marketing Expense Other Results Exchange + 0.9 125.7 Cost + 2.2 125 + 2.3
Slide 14: Fiscal Year March 2018 Forecast
FISCAL YEAR MARCH 2018 FORECAST Mazda Motor Corporation 13
Slide 15: 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 Volume (%) Global sales volume Japan 203 213 10 5% North America 429 454 25 6% Europe 262 267 5 2% China 292 282 (10) (3)% Other Markets 373 384 11 3% Total 1,559 1,600 41 3% <Breakdown> USA 302 328
Slide 16: FY March 2018 Financial Metrics
FY MARCH 2018 FINANCIAL METRICS Full Year FY March FY March Change from (Billion yen) 2017 2018 Prior Year Amount (%) Revenue 3,214.4 3,350.0 135.6 4% Operating profit 125.7 150.0 24.3 19% Ordinary profit 139.5 163.0 23.5 17% Profit before tax 128.4 150.0 21.6 17% Net income 93.8 100.0 6.2 7% Operat
Slide 17: FY March 2018 Operating Profit Change
FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 Full Year vs. FY March 2017 Full Year (Billion yen) Improvement (Deterioration) Includes higher material costs Volume increase with global introduction of new CX-5 Cost FY March Improvement R&D Other 2018 + 10.0 Cost + 12.4 150.0 Volume 150 & Mix E
Slide 18: Structural Reform Stage 2 Progress of Key Initiatives
STRUCTURAL REFORM STAGE 2 PROGRESS OF KEY INITIATIVES Mazda Motor Corporation 17
Slide 19: Product and R&D
PRODUCT AND R&D 【Expand the SKYACTIV lineup】 Global introduction of the new CX-5 which features refined design and technology, and brings a new dimension of driving pleasure. Launch the clean diesel-powered CX-5 in North America in the latter half of 2017 Add gasoline engine model to CX-3 lineup
Slide 20: Global Sales and Network Enhancement
GLOBAL SALES AND NETWORK ENHANCEMENT Sustainable volume growth of 50,000 units per year with the introduction of new and updated models “Right-price” sales policy emphasizing the value of the products helped boost transaction prices and residual values, leading to trade cycle management enhancem
Slide 21: Global Production and Cost Improvement
GLOBAL PRODUCTION AND COST IMPROVEMENT Improve production flexibility of crossover vehicles Hofu Plant: CX-3 production started Dec. 2016 New CX-5 production due to start Nov. 2017 Hiroshima Plant: Further expand production capacity of crossover models (FY March 2018) Improve production flexibil
Slide 22: Strengthen Financial Base and Shareholder Returns
STRENGTHEN FINANCIAL BASE AND SHAREHOLDER RETURNS Improve ability to generate profit and cash flow through steady volume growth and brand value improvement Improve balance sheet, especially equity ratio and net debt Accelerate investment for future growth (R&D and CAPEX) while strengthening fi
Slide 23: Communication of Next Generation Technologies
COMMUNICATION OF NEXT GENERATION TECHNOLOGIES Combine development of electrification and safety technologies with advances in the internal combustion engine to meet environmental regulations globally and help reduce automobile accidents Development of next-generation technologies is progressing
Slide 24: Mazda Motor Corporation
Mazda Motor Corporation 23
Slide 25: Appendix
APPENDIX Mazda Motor Corporation 24
Slide 26: Cash Flow and Net Debt
CASH FLOW AND NET DEBT FY March FY March 2016 2017 Change from (Billion yen) Full Year Full Year Prior FY End Cash Flow - From Operating activities 262.8 161.1 - - From Investing activities (108.1) (63.8) - - Free Cash Flow 154.7 97.3 - Cash and Cash Equivalents 568.7 526.9 (41.8) Net Debt 48.4 (35.
Slide 27: Revenue by Region
REVENUE BY REGION (Billion yen) 894.5 847.3 858.8 865.8 900 802.3 806.0 776.2 135.8 770.1 143.7 144.8 151.6 Other 126.7 130.3 125.6 132.8 183.8 166.6 149.6 600 Europe 144.0 180.6 140.6 154.1 145.4 304.6 264.0 North 291.0 277.3 284.6 236.0 291.6 America 281.4 300 270.3 271.2 307.4 Japan 244.3 230.5 2
Slide 28: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 894.5 865.8 847.3 858.8 900 806.0 56.9 802.3 56.8 69.3 776.2 770.1 66.4 Other 61.8 53.5 58.0 63.2 61.6 61.8 56.1 56.5 Parts 59.0 58.5 57.3 57.4 600 Vehicles / 775.8 Parts for 693.5 728.9 727.7 736.2 662.8 656.3 685.8 300 Overseas Production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q
Slide 29: Revenue Change
REVENUE CHANGE FY March 2017 Full Year vs. FY March 2016 Full Year (Billion yen) Japan (2)% FY March 2017 3,214.4 Overseas 4% FY March 2016 3,406.6 3% 2% (2)% (7)% (6)% (8)% (12)% Total Volume & Mix Exchange Mazda Motor Corporation 28
Slide 30: Revenue Change
REVENUE CHANGE FY March 2017 4th Quarter vs. FY March 2016 4th Quarter (Billion yen) 10% FY March 2017 865.8 Japan 1% FY March 2016 858.8 Overseas 1% 5% 2% 1% 0% (1)% (5)% (10)% Total Volume & Mix Exchange Mazda Motor Corporation 29
Slide 31: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Fourth Quarter FY March FY March Change from Change from (000) 2016 2017 Prior Year Feb. Forecast Global sales volume Volume (%) Volume Japan 69 71 2 2% (2) North America 93 98 5 5% (3) Europe 74 71 (3) (3)% 2 China 58 65 7 10% 11 Other Markets 95 92 (
Slide 32: FY March 2017 Financial Metrics
FY MARCH 2017 FINANCIAL METRICS Fourth Quarter FY March FY March Change from Change from (Billion yen) 2016 2017 Prior Year Feb. Forecast Amount (%) Amount Revenue 858.8 865.8 7.0 1% 14.4 Operating profit 53.4 23.7 (29.7) (56)% (4.3) Ordinary profit 51.6 21.6 (30.0) (58)% 4.5 Profit before tax 0.5 1
Slide 33: FY March 2017 Operating Profit Change
FY MARCH 2017 OPERATING PROFIT CHANGE March 2017 4th Quarter vs. FY March 2016 4th Quarter Improvement (Billion yen) (Deterioration) 75 FY March 2016 Cost Volume Improvement 53.4 Marketing & Mix + 7.1 Expense Other 50 Exchange (2.9) (9.1) (0.9) FY March 2017 23.7 25 (23.9) Change from Prior Year (29
Slide 34: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from (000) 2016 2017 Prior Year Global sales volume Volume (%) Japan 232 203 (29) (13)% North America 438 429 (9) (2)% Europe 257 262 5 2% China 235 292 57 24% Other Markets 372 373 1 1% Total 1,534 1,559 25 2% Consol
Slide 35: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from (000) 2017 2018 Prior Year Global sales volume Volume (%) Japan 203 213 10 5% North America 429 454 25 6% Europe 262 267 5 2% China 292 282 (10) (3)% Other Markets 373 384 11 3% Total 1,559 1,600 41 3% Consolidat
Slide 36: Crossover Vehicle Ratio
CROSSOVER VEHICLE RATIO （000 units） 1,500 Crossover vehicles 34% 39% 12% 28% 21% 27% 1,000 Passenger 500 vehicles, and others - FY March 2012 2013 2014 2015 2016 2017 2018 Globa sales 1,247 1,235 1,331 1,397 1,534 1,559 1,600 volume (000 units) Results Plan Mazda Motor Corporation 35
Slide 37: Exchange Rates
EXCHANGE RATES Full Year FY March FY March （Yen） 2017 2018 Change US Dollar 108 108 0 Euro 119 118 (1) Canadian Dollar 83 83 0 Australian Dollar 82 83 1 British Pound 142 138 (4) Mazda Motor Corporation 36
Slide 38: Key Data
KEY DATA (Billion yen) (Plan） 150 140.0 (Plan） 126.9 120.0 116.6 94.4 (Plan） 100 89.2 87.0 82.4 79.0 50 0 FY March 2016 2017 2018 2016 2017 2018 2016 2017 2018 Capital Depreciation R&D Cost Expenditure Cost Mazda Motor Corporation 37
Slide 39: Dividend Payment
DIVIDEND PAYMENT Trend of dividends per share Interim dividends 35 35 Year-end dividends 30 20 (forecast） 20 15 10 15 15 15 1 10 FY March 2014 FY March 2015 FY March 2016 FY March 2017 FY March 2018 Results Plan Note) A share consolidation was implemented on common stock with a ratio of five shares
Slide 40: 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