Mazda Motor Corp. · TSE:7261

Mazda Motor — H1 FY2003 Earnings Presentation

40 slides from Mazda Motor's earnings presentation, Nov 6, 2003

  1. Slide 1: FY2003 First Half Results & Full Year Projections

    Mazda Motor Corporation FY2003 FIRST HALF RESULTS FULL YEAR PROJECTIONS November 6, 2003 1 FY2003 First Half Results & Full Year Projections

  2. Slide 2: Outline

    OUTLINE Highlights First Half Results Full Year Projections Wrap-Up 2 FY2003 First Half Results & Full Year Projections

  3. Slide 3: FY2003 First Half Highlights

    FY2003 FIRST HALF HIGHLIGHTS First Half Profits up Sharply from Prior Year: - Operating Profit up 94% - Net Income up 100% Introduction of Mazda2 in Europe and RX-8 in Japan Strong Sales in Europe, Australia and China U.S. Market a Key Challenge No Change in Full Year Outlook 3 FY2003 First Half Res

  4. Slide 4: First Half Summary

    FIRST HALF SUMMARY First Half Change (Billion Yen) FY2003 FY2002 Amount Pct. Revenue 1,209.5 1,159.3 50.2 4% Operating Profit 28.4 14.6 13.8 94 % Ordinary Profit 19.0 9.1 9.9 107 % Net Income 11.2 5.5 5.7 100 % Wholesales (000) 526 498 28 6 % 4 FY2003 First Half Results & Full Year Projections

  5. Slide 5: Other Accomplishments

    OTHER ACCOMPLISHMENTS Mazda6 Accolades: ‒ More Than 60 Awards in 22 Countries ‒ 5-Star Safety Rating (National Highway Traffic Safety Administration, U.S.) “Most Reliable” U.K. Car Manufacturer (Warranty Direct) RENESIS - - International Engine of the Year 2003 (Engine Technology International) 5 FY

  6. Slide 6: Full Year Projections

    FULL YEAR PROJECTIONS Memo: Change April Proj. (Billion Yen) FY2003 FY2002 Amount Pct. FY2003 Revenue 2,500.0 2,364.5 135.5 6 % 2,420.0 Operating Profit 65.0 50.6 14.4 28 % 65.0 Ordinary Profit 57.0 40.7 16.3 40 % 57.0 Net Income 30.0 24.1 5.9 24 % 30.0 Wholesales (000) 1,060 1,017 43 4 % 1,053 6 FY

  7. Slide 7: FY2003 First Half Results

    FY2003 FIRST HALF RESULTS 7 FY2003 First Half Results & Full Year Projections

  8. Slide 8: First Half Financial Metrics

    FIRST HALF FINANCIAL METRICS First Half Change (Billion yen) FY2003 FY2002 Amount Pct. Revenue 1,209.5 1,159.3 50.2 4% Operating Profit 28.4 14.6 13.8 94 % Ordinary Profit 19.0 9.1 9.9 107 % Profit Before Tax 15.4 7.1 8.3 116 % Net Income 11.2 5.5 5.7 100 % Return on Sales 0.9% 0.5% 0.4 Pts - EPS (Y

  9. Slide 9: Cash Flow & Net Debt

    CASH FLOW & NET DEBT First Half B/(W) Prior (Billion yen) FY2003 Year End Cash Flow (21.8) NA Net Debt 428.1 (24.6) Net Debt-to-Equity 208% 0 Pts Capital Spending 15.7 NA 9 FY2003 First Half Results & Full Year Projections

  10. Slide 10: Japan

    JAPAN First Half FY2003 FY2002 Change Industry (000) 2,745 2,780 (1) % Market Share 4.9 % 4.6 % 0.3 Pts Retail Volume (000) 134 129 4 % Strong Demand for Demio and RX-8 10 FY2003 First Half Results & Full Year Projections

  11. Slide 11: United States

    UNITED STATES First Half CY2003 CY2002 Change Industry (000) 8,133 8,336 (2) % Market Share 1.5 % 1.5 % 0 Pts Retail Volume (000) 119 129 (8) % Lower Fleet Sales; Mazda6 Sales Improving 11 FY2003 First Half Results & Full Year Projections

  12. Slide 12: Western Europe

    WESTERN EUROPE First Half CY2003 CY2002 Change Industry (000) 8,633 8,845 (2) % Market Share 1.3 % 0.9 % 0.4 Pts Retail Volume (000) 109 82 32 % Memo: Total Europe 116 87 33 % Mazda6 & Mazda2 – Driving Growth 12 FY2003 First Half Results & Full Year Projections

  13. Slide 13: Key Assumptions

    KEY ASSUMPTIONS First Half FY2003 FY2002 Change WHOLESALES (000) Consolidated 526 498 6 % EXCHANGE RATES Yen / U.S. Dollar 118 128 ¥ (10) Yen / Euro 134 116 ¥ 18 13 FY2003 First Half Results & Full Year Projections

  14. Slide 14: Revenue Changes by Destination

    REVENUE CHANGES BY DESTINATION FY2003 First Half Compared with FY2002 First Half 10% Vol. & Mix 4% Exchange 0% 6% 5% 4% 1% 0% (Billion yen) Total Domestic Overseas 1H FY03 1,209.5 409.6 799.9 1H FY02 1,159.3 406.3 753.0 14 FY2003 First Half Results & Full Year Projections

  15. Slide 15: Operating Profit Changes

    OPERATING PROFIT CHANGES FY2003 First Half Compared with FY2002 First Half Billion yen Strong growth 13.8 in Europe and 13.6 15 ROW 10 8.2 8.4 5 0 (5) 1H FY03 28.4 (2.6) 1H FY02 14.6 (5.9) (10) (7.9) (15) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 15 FY2003 First Half Resu

  16. Slide 16: Operating Profit Changes

    OPERATING PROFIT CHANGES FY2003 First Half Compared with FY2002 First Half Euro 9.8 Billion yen US$ (3.0) 15 13.8 Other 1.6 13.6 10 8.2 8.4 5 0 (5) 1H FY03 28.4 (2.6) 1H FY02 14.6 (5.9) (10) (7.9) (15) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 16 FY2003 First Half Results

  17. Slide 17: Operating Profit Changes

    OPERATING PROFIT CHANGES FY2003 First Half Compared with FY2002 First Half Billion yen Product Upgrades VE and Other 13.8 and Regulatory 13.6 Product Cost 15 Actions Reductions 10 8.2 8.4 5 0 (5) 1H FY03 28.4 (2.6) 1H FY02 14.6 (5.9) (10) (7.9) (15) Total Vol & Mix Exch. Product CR Mktg. Other Oper.

  18. Slide 18: Operating Profit Changes

    OPERATING PROFIT CHANGES FY2003 First Half Compared with FY2002 First Half Billion yen 15 13.8 13.6 10 8.2 8.4 Pension and Other Costs 5 0 (5) 1H FY03 28.4 (2.6) 1H FY02 14.6 (5.9) (10) (7.9) (15) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 18 FY2003 First Half Results & Fu

  19. Slide 19: FY2003 Full Year Projections

    FY2003 FULL YEAR PROJECTIONS 19 FY2003 First Half Results & Full Year Projections

  20. Slide 20: Full Year Financial Metrics

    FULL YEAR FINANCIAL METRICS Change Memo: April Proj. (Billion yen) FY2003 FY2002 Amount Pct. FY2003 Revenue 2,500.0 2,364.5 135.5 6% 2,420.0 Operating Profit 65.0 50.6 14.4 28 % 65.0 Ordinary Profit 57.0 40.7 16.3 40 % 57.0 Profit Before Tax 49.0 28.1 20.9 74 % 49.0 Net Income 30.0 24.1 5.9 24 % 30.

  21. Slide 21: Cash Flow & Net Debt

    CASH FLOW & NET DEBT FY2003 Memo: B/(W) April Proj. (Billion yen) FY2003 FY2002 FY2002 FY2003 Cash Flow 40.0 47.0 NA 40.0 Net Debt 367.1 403.5 36.4 370.7 Net Debt-to-Equity 168% 208% 40 Pts 170% Capital Spending 48.0 44.0 (4.0) 55.0 Dividend (Yen/Share) 2 2 0 2 21 FY2003 First Half Results & Full Ye

  22. Slide 22: New Vehicle Introductions

    NEW VEHICLE INTRODUCTIONS /2003 North America Europe Japan Mazda2 RX-8 RX-8 RX-8 Mazda3 Mazda3 Axela 22 FY2003 First Half Results & Full Year Projections

  23. Slide 23: Japan

    JAPAN FY2003 FY2002 Change Industry (000) 5,757 5,864 (2) % Market Share 4.9 % 4.6 % 0.3 Pts Retail Volume (000) 280 270 4 % Axela - - Dynamic Sports Compact - - Just Launched 23 FY2003 First Half Results & Full Year Projections

  24. Slide 24: United States

    UNITED STATES CY2003 CY2002 Change Industry (000) 16,508 16,615 (1) % Market Share 1.6 % 1.6 % 0 Pts Retail Volume (000) 265 258 3 % Growing Sales with Mazda6 and RX-8 24 FY2003 First Half Results & Full Year Projections

  25. Slide 25: Western Europe

    WESTERN EUROPE CY2003 CY2002 Change Industry (000) 16,032 16,518 (3) % Market Share 1.3 % 1.0 % 0.3 Pts Retail Volume (000) 210 170 23 % Memo: Total Europe 225 182 24 % RX-8 and Mazda3 – Adding to a Great Line-up 25 FY2003 First Half Results & Full Year Projections

  26. Slide 26: Key Assumptions

    KEY ASSUMPTIONS FY2003 FY2002 Change WHOLESALES (000) Consolidated 1,060 1,017 4 % EXCHANGE RATES Yen / U.S. Dollar 114 124 ¥ (10) Yen / Euro 129 119 ¥ 10 26 FY2003 First Half Results & Full Year Projections

  27. Slide 27: Revenue Changes by Destination

    REVENUE CHANGES BY DESTINATION FY2003 Full Year Compared with FY2002 Full Year 10% Vol. & Mix 6% Exchange 0% 6% 6% 5% 5% 0% (Billion yen) Total Domestic Overseas FY03 2,500.0 860.0 1,640.0 FY02 2,364.5 818.3 1,546.2 27 FY2003 First Half Results & Full Year Projections

  28. Slide 28: Operating Profit Changes

    OPERATING PROFIT CHANGES FY2003 Full Year Compared with FY2002 Full Year Billion yen 60 Higher Volumes, 50.0 Partially Offset 40 by Incentives 14.4 16.4 20 5.2 0 0 (20) FY03 65.0 FY02 50.6 (26.4) (40) (30.8) (60) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 28 FY2003 First H

  29. Slide 29: Operating Profit Changes

    OPERATING PROFIT CHANGES FY2003 Full Year Compared with FY2002 Full Year Billion yen 60 Euro 16.3 50.0 US$ (12.3) 40 Other 1.2 14.4 16.4 20 5.2 0 0 (20) FY03 65.0 FY02 50.6 (26.4) (40) (30.8) (60) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 29 FY2003 First Half Results & Fu

  30. Slide 30: Operating Profit Changes

    OPERATING PROFIT CHANGES FY2003 Full Year Compared with FY2002 Full Year Billion yen VE and Other 60 Product Upgrades 50.0 Product Cost and Regulatory Reductions 40 Actions 14.4 16.4 20 5.2 0 0 (20) FY03 65.0 FY02 50.6 (26.4) (40) (30.8) (60) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc

  31. Slide 31: Operating Profit Changes

    OPERATING PROFIT CHANGES FY2003 Full Year Compared with FY2002 Full Year Billion yen 60 50.0 Pension and 40 Other Costs 14.4 16.4 20 5.2 0 0 (20) FY03 65.0 FY02 50.6 (26.4) (40) (30.8) (60) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 31 FY2003 First Half Results & Full Year

  32. Slide 32: Wrap-Up

    WRAP-UP 32 FY2003 First Half Results & Full Year Projections

  33. Slide 33: Full Year Summary

    FULL YEAR SUMMARY Launches of Mazda2, RX-8 and Mazda3/Axela Further Revenue and Volume Growth Operating Profit at 10-Year High Positive Cash Flow 33 FY2003 First Half Results & Full Year Projections

  34. Slide 34: Key Priorities

    KEY PRIORITIES United States China Cost Reduction Product Development 34 FY2003 First Half Results & Full Year Projections

  35. Slide 35: 35 FY2003 First Half Results & Full Year Projections

    35 FY2003 First Half Results & Full Year Projections

  36. Slide 36: Attachments

    ATTACHMENTS 36 FY2003 First Half Results & Full Year Projections

  37. Slide 37: Geographic Operating Profit

    GEOGRAPHIC OPERATING PROFIT (Billion yen) 1st Half FY2003 FY2002 Change Japan 34.5 16.3 18.2 North America (8.5) (7.2) (1.3) Europe 5.3 2.8 2.5 Rest of World 2.6 1.8 0.8 Total * 28.4 14.6 13.8 * Includes Intersegment Adjustments 37 FY2003 First Half Results & Full Year Projections

  38. Slide 38: Non-Operating & Extraordinary Income

    NON-OPERATING & EXTRAORDINARY INCOME First Half Full Year (Billion yen) FY2003 FY2002 FY2003 FY2002 Non-Operating (9.4) (5.5) (8.0) (9.9) Income/(Loss) Extraordinary (3.6) (2.0) (8.0) (12.6) Income/(Loss) 38 FY2003 First Half Results & Full Year Projections

  39. Slide 39: Unconsolidated Financial Metrics

    UNCONS. FINANCIAL METRICS First Half Full Year (Billion yen) FY2003 FY2002 FY2003 FY2002 Revenue 796.2 736.8 1,660.0 1,537.6 Operating Profit 23.4 8.5 14.0 29.0 Ordinary Profit 16.8 7.4 14.0 24.5 PBT 12.5 4.8 5.0 (43.3) Net Income 9.0 3.9 4.0 (50.2) Memo: Wholesales (000) 422 439 897 872 39 FY2003 F

  40. Slide 40: 40 FY2003 First Half Results & Full Year Projections

    40 FY2003 First Half Results & Full Year Projections

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