Mazda Motor Corp. · TSE:7261

Mazda Motor — Q3 FY March 2016 Earnings Presentation

35 slides from Mazda Motor's earnings presentation, February 2016

  1. Slide 1: Fiscal Year March 2016 Third Quarter Financial Results

    FISCAL YEAR MARCH 2016 THIRD QUARTER FINANCIAL RESULTS 1

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2016 Nine Month Results  Fiscal Year March 2016 Full Year Forecast  Progress of Key Initiatives 2

  3. Slide 3: Highlights

    HIGHLIGHTS iq

  4. Slide 4: Highlights (1) - Nine Month Results

    HIGHLIGHTS(1)-NINE MONTH RESULTS  Global sales were up 14% over the prior year to 1,145,000 units, a new record for the first nine months - New CX-3 and new MX-5/Roadster contributed to global sales - Sales of updated Mazda6/Atenza and CX-5 continued to be strong  Revenue was ¥2 trillion 547.8 bil

  5. Slide 5: Highlights (2) - Full Year Forecast

    HIGHLIGHTS(2)–FULL YEAR FORECAST  Full year forecast is unchanged from November: Global sales of 1,515,000 units, operating profit of ¥230 billion and net income of ¥155 billion  Expansion of SKYACTIV line-up is progressing as planned and the ratio of SKYACTIV models will exceed 85% of sales volum

  6. Slide 6: Fiscal Year March 2016 Nine Month Results

    FISCAL YEAR MARCH 2016 NINE MONTH RESULTS 6

  7. Slide 7: FY March 2016 Financial Metrics

    FY MARCH 2016 FINANCIAL METRICS Nine Month FY March FY March Change from (Billion yen) 2015 2016 Prior Year Amount YOY(%) Revenue 2,193.6 2,547.8 354.2 16% Operating profit 152.0 173.4 21.4 14% Ordinary profit 160.5 172.0 11.5 7% Profit before tax 160.9 166.5 5.6 3% Net income 131.5 123.5 (8.0) (6)%

  8. Slide 8: Global Sales Volume

    GLOBAL SALES VOLUME Nine Month FY March FY March Change from (000) 2015 2016 Prior Year Global sales volume Volume YOY(%) Japan 143 163 20 15% North America 320 345 25 8% Europe 167 183 16 9% China 156 177 21 13% Other Markets 217 277 60 27% Total 1,003 1,145 142 14% <Breakdown> USA 228 241 13 6% Au

  9. Slide 9: Japan

    JAPAN  Sales were 163,000 units, up 15% year-on-year  Mazda sales grew while overall demand declined, and market New MX-5/Roadster share rose 0.9 points year-on- year to 4.7％. Nine Month Sales Volume (000) Registered vehicle market 200 +15% share was 6.1%, up 1.2 points 163 150 143 year-on-year 10

  10. Slide 10: North America

    NORTH AMERICA  Sales were 345,000 units, up 8% year-on-year  Good progress in transition to SKYACTIV models CX-5 spurred sales growth  US: Sales were 241,000 units, up 6% year-on-year Nine Month Sales Volume (000) - Sales of updated CX-5 and 400 +8% 345 Mazda6 stayed strong 320 Canada & - Maintai

  11. Slide 11: Europe

    EUROPE  Sales were 183,000 units, up 9% year-on-year  Mazda2 and new CX-3 drove sales growth  Sales in Europe excluding Russia Mazda2/Demio grew 27% year-on-year to 163,000 units, substantially outpacing overall demand Nine Month Sales Volume (000) growth 200 183 167 +9% - Germany: 44,000 units,

  12. Slide 12: China

    CHINA  Sales were 177,000 units, up 13% year-on-year  Despite declining demand due to the economic Mazda3/Axela slowdown, year-on-year sales have increased for Nine Month Sales Volume 11 consecutive months (000) 200 177 156 +13%  Sales of Mazda3 were strong 150 due to a tax reduction 100  Mazda6

  13. Slide 13: Other Markets

    OTHER MARKETS  Sales were 277,000 units, up 27% year-on-year  Australia: 86,000 units, up 18% year-on-year and market share was 9.8％ - No.2 in sales by brand New CX-3 - New CX-3 and CX-5 were the best sellers in their segments - New MX-5 sales were also strong Nine Month Sales Volume (000)  ASEAN

  14. Slide 14: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2016 Nine Month vs. FY March 2015 Nine Month Improvement (Deterioration) (Billion yen) Global sales Includes lower increase material prices 250 Volume & Cost Mix Improvement Marketing 48.4 Exchange 26.8 Expense FY March 200 Other 2016 FY March 2015 173.4 (6.1) 152.0

  15. Slide 15: Fiscal Year March 2016 Full Year Forecast

    FISCAL YEAR MARCH 2016 FULL YEAR FORECAST 15

  16. Slide 16: Global Sales Volume

    GLOBAL SALES VOLUME FY March 2016 Change First Second Full from Prior Year (000) Half Half Year Global sales volume YOY(%) Japan 120 114 234 4% North America 233 214 447 5% Europe 124 131 255 11% China 109 111 220 3% Other Markets 178 181 359 18% Total 764 751 1,515 8% <Breakdown> USA 164 153 317 4%

  17. Slide 17: FY March 2016 Financial Metrics

    FY MARCH 2016 FINANCIAL METRICS FY March 2016 Change First Second Full from Prior Year (Billion yen) Half Half Year Revenue 1,700.5 1,669.5 3,370.0 336.1 Operating profit 125.9 104.1 230.0 27.1 Ordinary profit 121.1 108.9 230.0 17.4 Profit before tax 116.3 103.7 220.0 10.7 Net income 88.3 66.7 155.0

  18. Slide 18: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2016 Full Year vs. FY March 2015 Full Year Improvement Global sales Includes lower (Deterioration) increase material prices (Billion yen) Volume & Cost Marketing Mix Improvement Expense + 57.0 Exchange + 31.4 Other FY March + 0.0 2016 250 FY March 230.0 2015 (25.7) 2

  19. Slide 19: Progress of Key Initiatives

    PROGRESS OF KEY INITIATIVES 19

  20. Slide 20: Progress of Key Initiatives (1)

    PROGRESS OF KEY INITIATIVES (1)  Increase and continually evolve SKYACTIV models ‒ Global launches of new CX-3 and new MX-5/Roadster ‒ Launch updated Mazda2/Demio and CX-3 ‒ Sales of all SKYACTIV models increased year-on-year and ratio of SKYACTIV models is projected to exceed 85% ‒ SKYACTIV models

  21. Slide 21: Progress of Key Initiatives (2)

    PROGRESS OF KEY INITIATIVES (2)  Strengthen global sales and network ‒ Launch updated models to continue “right-price” sales policy, improving net revenue (transaction price) and reducing incentives. ‒ Accelerate efforts to improve customer retention, enhancing brand communications and customer car

  22. Slide 22: Progress of Key Initiatives (3)

    PROGRESS OF KEY INITIATIVES (3)  Global alliance initiatives are on track ‒ Produce and supply a compact car for Toyota at Mexico Plant ‒ Planning to start production of sports car for Fiat Chrysler Automobiles at Hiroshima plant  Strengthen financial base ‒ Free cash flow increased significantly.

  23. Slide 23: MagZDI

    MagZDI

  24. Slide 24: Appendix

    APPENDIX iq 24

  25. Slide 25: Cash Flow and Net Debt

    CASH FLOW AND NET DEBT FY March 2015 FY March 2016 Change from (Billion yen) Full Year 9 Month Prior FY End Cash Flow - From Operating activities 204.5 168.6 - - From Investing activities (95.6) (58.0) - - Free Cash Flow 108.9 110.6 - Cash and Cash Equivalents 529.1 580.4 51.3 Net Debt 171.9 90.8 81

  26. Slide 26: Revenue by Region

    REVENUE BY REGION (Billion yen) 894.5 900 840.3 847.3 806.0 135.8 748.3 739.7 133.5 151.6 705.6 126.7 111.5 118.3 183.8 Other 102.3 152.8 600 144.0 180.6 166.6 141.0 146.2 Europe 271.7 304.6 291.0 284.6 242.4 257.7 North 247.5 300 America 282.3 270.3 Japan 227.8 222.7 244.3 230.5 209.6 0 1Q 2Q 3Q 4Q

  27. Slide 27: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 894.5 900 840.3 56.9 847.3 806.0 59.6 61.8 56.8 748.3 739.7 53.5 705.6 58.9 61.6 55.5 54.0 59.0 Other 53.7 54.0 58.9 Parts 59.9 600 775.8 721.8 728.9 Vehicles / 693.5 638.8 626.8 300 Parts for 592.0 Overseas Production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY March 2015 FY March 20

  28. Slide 28: Revenue Change

    REVENUE CHANGE FY March 2016 Nine Month vs. FY March 2015 Nine Month (Billion yen) FY March 2016 2,547.8 FY March 2015 2,193.6 Japan 3% 20% Overseas 11% 15% 16% 14% 10% 5% 2% 0% Total Volume & Mix Exchange 28

  29. Slide 29: Revenue Change

    REVENUE CHANGE FY March 2016 3rd Quarter vs. FY March 2015 3rd Quarter (Billion yen) FY March 2016 847.3 FY March 2015 739.7 Japan (1)% 20% Overseas 18% 15% 17% 15% 10% 5% 0% (2)% (5)% Total Volume & Mix Exchange 29

  30. Slide 30: FY March 2016 Financial Metrics

    FY MARCH 2016 FINANCIAL METRICS Third Quarter FY March FY March Change from (Billion yen) 2015 2016 Prior Year Revenue 739.7 847.3 107.6 Operating profit 48.0 47.5 (0.5) Ordinary profit 53.4 50.9 (2.5) Profit before tax 53.9 50.2 (3.7) Net income 38.2 35.2 (3.0) Operating ROS 6.5% 5.6% (0.9)pts EPS

  31. Slide 31: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Third Quarter FY March FY March Change from (000) 2015 2016 Prior Year Global sales volume Japan 53 43 (10) North America 94 112 18 Europe 53 59 6 China 62 68 6 Other Markets 72 99 27 Total 334 381 47 Consolidated Wholesales Japan 52 43 (9) North Ameri

  32. Slide 32: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2016 3rd Quarter vs. FY March 2015 3rd Quarter Improvement (Deterioration) (Billion yen) Global sales increase Volume & Mix 75 Cost + 21.8 Exchange Improvement Marketing + 11.2 Expense Other FY March FY March 2015 (0.5) 2016 + 48.0 + 47.5 50 (16.0) (17.0) Includes lo

  33. Slide 33: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES FY March 2016 Change from Prior Year First Second Full First Second Full (000) Half Half Year Half Half Year Global sales volume Japan 120 114 234 30 (21) 9 North America 233 214 447 7 15 22 Europe 124 131 255 10 16 26 China 109 111 220 15 (10) 5 Other

  34. Slide 34: Key Data

    KEY DATA (Billion yen) 150 Full 131.0 Year 125.0 105.0 Full 108.4 100 Year Nine 80.0 Month 94.6 Nine 79.9 81.5 Full 68.9 Month Year 50 58.6 53.7 Nine 49.9 Month 0 FY March FY March FY March FY March FY March FY March 2015 2016 2015 2016 2015 2016 Capital Depreciation R&D cost Spending * FY March 201

  35. Slide 35: 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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