Slide 1: FY2003 Results & FY2004 Projections
Mazda Motor Corporation FY2003 RESULTS & FY2004 PROJECTIONS May 13, 2004 1 FY2003 Results & FY2004 Projections
Slide 2: Outline
OUTLINE Highlights FY2003 Results FY2004 Projections U.S. Market Actions Close 2 FY2003 Results & FY2004 Projections
Slide 3: FY2003 Highlights
FY2003 HIGHLIGHTS Profits up Sharply; Operating Profit at 10-Year High Further Growth in Sales and Revenue China Sales Strong U.S. Market Actions in Place ABC Cost Reduction Initiative Succeeding Successful Launches of Mazda2, RX-8 and Axela/Mazda3 3 FY2003 Results & FY2004 Projections
Slide 4: FY2004 Outlook
FY2004 OUTLOOK Strong Sales and Revenue Growth in All Key Markets Wholesales up 10% Continued Strong Focus on Cost Reduction Adverse Impact from Exchange Rates and Raw Material Prices Profits in Line with FY2003 4 FY2003 Results & FY2004 Projections
Slide 5: FY2003 Results
FY2003 RESULTS 5 FY2003 Results & FY2004 Projections
Slide 6: FY2003 Consolidation Change
FY2003 CONSOLIDATION CHANGE Whole- Operating sales Revenue Profit (000) (¥ Bils.) (¥ Bils.) Prior Method 1,076 2,574.7 70.3 Change Overseas Subsidiary Fiscal 149 341.4 (0.1) Year Ends from Dec. to March Reported Results 1,225 2,916.1 70.2 6 FY2003 Results & FY2004 Projections
Slide 7: FY2003 Financial Metrics
FY2003 FINANCIAL METRICS Change (Billion yen) FY2003 FY2002 Amount Pct. Operating Profit 70.2 50.6 19.6 39 % Ordinary Profit 58.0 40.7 17.3 43 % Profit Before Tax 54.1 28.1 26.0 92 % Net Income 33.9 24.1 9.8 41 % Return on Sales 1.2% 1.0% 0.2 Pts - EPS (Yen/Share) 27.84 19.80 8.04 41 % 7 FY2003 Resu
Slide 8: Cash Flow & Net Debt
CASH FLOW & NET DEBT FY2003 B/(W) (Billion yen) FY2003 FY2002 FY2002 Cash Flow 49.1 47.0 NA Net Debt 358.1 403.5 45.4 Net Debt-to-Equity 161% 208% 47 Pts Capital Spending 45.6 44.0 (1.6) Dividend (Yen/Share) 2 2 0 8 FY2003 Results & FY2004 Projections
Slide 9: Key Assumptions
KEY ASSUMPTIONS FY2003 FY2002 Change WHOLESALES (000) Consolidated 1,076 * 1,017 6 % REVENUE (¥ Bils.) 2,574.7 * 2,364.5 9 % EXCHANGE RATES Yen / U.S. Dollar 113 124 ¥ (11) Yen / Euro 133 119 ¥ 14 ----- * Based on Prior Method of Consolidation 9 FY2003 Results & FY2004 Projections
Slide 10: Revenue Changes by Destination
REVENUE CHANGES BY DESTINATION FY2003 Compared with FY2002 15% Vol. & Mix 8% 12% Exchange 1% 10% 9% 5% 3% 0% (Billion yen) Total Domestic Overseas FY03 2,574.7 846.2 1,728.5 FY02 2,364.5 818.3 1,546.2 10 FY2003 Results & FY2004 Projections
Slide 11: Japan
JAPAN FY2003 FY2002 Change Retail Volume (000) 279 270 3 % Market Share 4.7 % 4.6 % 0.1 Pts Successful Introduction of RX-8 and Axela 11 FY2003 Results & FY2004 Projections
Slide 12: United States
UNITED STATES CY2003 CY2002 Change Retail Volume (000) 259 258 0 % Market Share 1.6 % 1.6 % 0 Pts Sales Up in Second Half 12 FY2003 Results & FY2004 Projections
Slide 13: Europe
EUROPE CY2003 CY2002 Change Retail Volume (000) 229 182 26 % Market Share 1.3 % 1.1 % 0.2 Pts Record Sales in Four Countries 13 FY2003 Results & FY2004 Projections
Slide 14: Operating Profit Changes
OPERATING PROFIT CHANGES FY2003 Compared with FY2002 Billion yen Higher Volumes 60 49.6 Partially Offset by Incentives & Mix 40 19.6 20 12.2 15.7 0 (3.4) FY03 70.2 (20) FY02 50.6 (23.7) (40) (30.8) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 14 FY2003 Results & FY2004 Proje
Slide 15: Operating Profit Changes
OPERATING PROFIT CHANGES FY2003 Compared with FY2002 Billion yen Euro 19.5 60 49.6 US$ (11.8) Other 8.0 40 19.6 20 12.2 15.7 0 (3.4) FY03 70.2 (20) FY02 50.6 (23.7) (40) (30.8) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 15 FY2003 Results & FY2004 Projections
Slide 16: Operating Profit Changes
OPERATING PROFIT CHANGES FY2003 Compared with FY2002 Billion yen Product Upgrades VE and Other 60 49.6 and Regulatory Product Cost Actions Reductions 40 19.6 20 12.2 15.7 0 (3.4) FY03 70.2 (20) FY02 50.6 (23.7) (40) (30.8) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 16 FY20
Slide 17: Operating Profit Changes
OPERATING PROFIT CHANGES FY2003 Compared with FY2002 Billion yen 60 49.6 40 Pension and 19.6 Other Costs 20 12.2 15.7 0 (3.4) FY03 70.2 (20) FY02 50.6 (23.7) (40) (30.8) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 17 FY2003 Results & FY2004 Projections
Slide 18: FY2004 Projections
FY2004 PROJECTIONS 18 FY2003 Results & FY2004 Projections
Slide 19: FY2004 Financial Metrics
FY2004 FINANCIAL METRICS Change (Billion yen) FY2004 FY2003 Amount Pct. Operating Profit 70.0 70.2 (0.2) 0 % Ordinary Profit 65.0 58.0 7.0 12 % Profit Before Tax 55.0 54.1 0.9 2 % Net Income 34.0 33.9 0.1 0 % Return on Sales 1.3% 1.2% 0.1 Pts - EPS (Yen/Share) 27.94 27.84 0.1 0 % 19 FY2003 Results &
Slide 20: Key Assumptions
KEY ASSUMPTIONS FY2004 FY2003 Change WHOLESALES (000) Consolidated 1,180 1,076 * 10 % REVENUE (¥ Bils.) 2,660.0 2,574.7 * 3 % EXCHANGE RATES Yen / U.S. Dollar 105 113 ¥ (8) Yen / Euro 125 133 ¥ (8) ----- * Based on Prior Method of Consolidation 20 FY2003 Results & FY2004 Projections
Slide 21: Revenue Changes by Destination
REVENUE CHANGES BY DESTINATION FY2004 Compared with FY2003 10% Vol. & Mix 7% Exchange (4)% 5% 5% 3% 0% 0% (Billion yen) Total Domestic Overseas FY04 2,660.0 850.0 1,810.0 FY03 2,574.7 846.2 1,728.5 21 FY2003 Results & FY2004 Projections
Slide 22: Japan
JAPAN FY2004 FY2003 Change Retail Volume (000) 295 279 6 % Market Share 5.0 % 4.7 % 0.3 Pts Sales Growth with New Models 22 FY2003 Results & FY2004 Projections
Slide 23: United States
UNITED STATES Memo: FY2004 FY2003 Change CY2003 Retail Volume (000) 300 273 10 % 259 Market Share 1.8 % 1.6 % 0.2 Pts 1.6 % Market Actions Driving Higher Sales 23 FY2003 Results & FY2004 Projections
Slide 24: Europe
EUROPE Memo: FY2004 FY2003 Change CY2003 Retail Volume (000) 270 250 8 % 229 Market Share 1.6 % 1.5 % 0.1 Pts 1.3 % Strong Start for Mazda3 and RX-8 24 FY2003 Results & FY2004 Projections
Slide 25: Operating Profit Changes
OPERATING PROFIT CHANGES FY2004 Compared with FY2003 Billion yen 60 Higher Volumes in All Key Markets 45.1 40 24.8 20 4.0 (0.2) 0 (20) FY04 70.0 FY03 70.2 (16.5) (28.5) (29.1) (40) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 25 FY2003 Results & FY2004 Projections
Slide 26: Operating Profit Changes
OPERATING PROFIT CHANGES FY2004 Compared with FY2003 Billion yen 60 US$ (12.0) Euro (9.0) 45.1 40 Other (7.5) 24.8 20 4.0 (0.2) 0 (20) FY04 70.0 FY03 70.2 (16.5) (28.5) (29.1) (40) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 26 FY2003 Results & FY2004 Projections
Slide 27: Operating Profit Changes
OPERATING PROFIT CHANGES FY2004 Compared with FY2003 Billion yen VE and Other 60 Product Upgrades Product Cost and Regulatory 45.1 Reductions 40 Actions 24.8 20 4.0 (0.2) 0 (20) FY04 70.0 FY03 70.2 (16.5) (28.5) (29.1) (40) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 27 FY2
Slide 28: Operating Profit Changes
OPERATING PROFIT CHANGES FY2004 Compared with FY2003 Billion yen 60 45.1 R&D and 40 Other Costs 24.8 20 4.0 (0.2) 0 (20) FY04 70.0 FY03 70.2 (16.5) (28.5) (29.1) (40) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 28 FY2003 Results & FY2004 Projections
Slide 29: In Sum
IN SUM FY2003 Operating Profit at 10-Year High Strong Sales Performance in Europe, Australia and China Successful New Model Launches FY2004 Strong Sales and Revenue Growth in All Key Markets Adverse Impact From Exchange Rates and Raw Material Prices Maintain Profits in Line with FY2003 29 FY2003 Res
Slide 30: U.S. Market Actions
U.S. MARKET ACTIONS 30 FY2003 Results & FY2004 Projections
Slide 31: U.S. Market Actions
U.S. MARKET ACTIONS Recent Product Actions Exclusive Dealer Plan Dealer Facility Upgrades Other Profit Actions Future Products 31 FY2003 Results & FY2004 Projections
Slide 32: Recent Product Actions
RECENT PRODUCT ACTIONS 32 FY2003 Results & FY2004 Projections
Slide 33: Media Accolades
MEDIA ACCOLADES Mazda3 “2004 Driver’s Choice Award for Best Small Car” – Motor Week “For the Price, Mazda’s New Sedan and Hatchback will Top Anything Else” – Chicago Tribute Mazda6 “A Recommended Buy” – Consumer Reports “Best Mid-Size Sedan” – Money Magazine RX-8 “The Experience is Like No Other” –
Slide 34: Sales Growth
SALES GROWTH Year-Over-Year Percentage Increase % 60 52% 40 36% 37% 25% 22% 18% 20 10% 0 Oct. Nov. Dec. Jan. Feb. Mar. Apr. 34 FY2003 Results & FY2004 Projections
Slide 35: Exclusive Dealers
EXCLUSIVE DEALERS Sales and Service Points - % Exclusive Percent 50% 50 40 30% 30 24% 20 18% 10 0 FY02 FY03 FY04 FY05 FY06 FY07 35 FY2003 Results & FY2004 Projections
Slide 36: Retail Revolution
RETAIL REVOLUTION 36 FY2003 Results & FY2004 Projections
Slide 37: Profit Improvement Actions
PROFIT IMPROVEMENT ACTIONS Better Retail/Fleet Sales Mix Lower Incentive Spending Vehicle Residual Values Leveraging Our Marketing Expense Improved Capacity Utilization 37 FY2003 Results & FY2004 Projections
Slide 38: Phase IV Product Strategy
PHASE IV PRODUCT STRATEGY All-New Core Products New Entries in Growth Segments Vehicles More Appropriate for U.S. Market U.S. Consumer Design Preferences 38 FY2003 Results & FY2004 Projections
Slide 39: Close
CLOSE 39 FY2003 Results & FY2004 Projections
Slide 40: Key Priorities
KEY PRIORITIES United States China Cost Reduction Product Development 40 FY2003 Results & FY2004 Projections
Slide 41: Mazda MX-Micro Sport
MAZDA MX - MICRO SPORT 41 FY2003 Results & FY2004 Projections
Slide 42: Mazda MX-Flexa
MAZDA MX - FLEXA 42 FY2003 Results & FY2004 Projections
Slide 43: 43 FY2003 Results & FY2004 Projections
43 FY2003 Results & FY2004 Projections
Slide 44: Disclaimer
DISCLAIMER The projections for FY 2004 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 aw