Mazda Motor Corp. · TSE:7261
Mazda Motor — Q3 FY2009 Earnings Presentation
37 slides from Mazda Motor's earnings presentation, Feb 5, 2010
Slide 1: FY2009 Third Quarter Results and Full Year Forecast
FY2009 THIRD QUARTER RESULTS AND FULL YEAR FORECAST Mazda2 (Produced at AAT) Mazda Motor Corporation February 5, 2010 1
Slide 2: Outline
OUTLINE Highlights FY2009 Third Quarter Results FY2009 Full Year Forecast In Summary Initiatives for FY2010 and Onward 2
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: FY2009 Third Quarter Highlights
FY2009 THIRD QUARTER HIGHLIGHTS Third Quarter - Revenue was ¥557.6 billion, up 9% year-over-year. Operating profit was ¥11.1 billion. Net income was ¥4.4 billion - Achieved profitability in all profit categories. These profit levels exceed the second quarter results - Achieved positive free cash flo
Slide 5: FY2009 Full Year Forecast Highlights
FY2009 FULL YEAR FORECAST HIGHLIGHTS Revenue of ¥2,150 billion and an operating profit of ¥5 billion are projected Operating profit is revised up by ¥17 billion, and return to profitability is projected Secure profitability and also higher profits in all profit categories from the second quarter thr
Slide 6: FY2009 Third Quarter Results
FY2009 THIRD QUARTER RESULTS 6
Slide 7: FY2009 Third Quarter Financial Metrics
FY2009 THIRD QUARTER FINANCIAL METRICS (Billion yen) Third Quarter Nine Months Change from Change from FY2008 FY2008 Results Amount (%) Results Amount (%) Revenue 557.6 45.2 9 1,547.9 (540.0) (26) Operating profit 11.1 35.3 - (11.0) (47.5) - Ordinary profit 10.7 7.1 199 (18.9) (71.0) - Profit before
Slide 8: Revenue Change
REVENUE CHANGE Third Quarter Nine Months 9% Volume & Mix 9% 0% 0% Exchange Exchange (6)% Volume & Mix (20)% (20)% (26)% (40)% 8
Slide 9: Cash Flow and Net Debt
CASH FLOW AND NET DEBT 3Q end FY2009 Change from 1-2Q 1-3Q FY2008 3Q end (Billion yen) TTL TTL Cash Flow - Operating C/F 26.1 20.6 46.7 - - Investing C/F (15.9) (5.4) (21.3) - - Free C/F 10.2 15.2 25.4 - Net debt (521.6) (418.4) (418.4) 114.2 Net debt-to-equity ratio 129 % 84 % 84 % 45 pts 9
Slide 10: Key Data
KEY DATA Third Quarter Nine Months (000) Change from FY08 Change from FY08 Results Volume (%) Results Volume (%) Global sales volume Japan 45 4 10 150 (14) (9) North America 70 (1) (3) 228 (43) (16) Europe 53 (10) (15) 176 (66) (27) China 57 23 68 142 45 46 Other 62 8 17 168 (22) (12) Total 287 24 9
Slide 11: Japan
JAPAN Third quarter sales grew 10% compared to the prior year Sales of the new Mazda Axela have exceeded monthly sales target since its launch and maintained strong sales Mazda ｉ-stop has been highly acclaimed and received the Eco- Products Award and 2010 RJC Technology of the Year Award Third quart
Slide 12: North America
NORTH AMERICA Third quarter US sales recovered to the prior year’s level The Mazda3 won the Automotive Lease Guide Residual Value Award for the mid-compact segment. Overall, the Mazda brand improved to 3rd place, up from 6th place last year Residual value in Canada also improved and Mazda was ranked
Slide 13: Europe
EUROPE Improve brand value Third quarter sales excluding Russia remained almost the same level as prior year UK recorded successive monthly record sales in November and December Introduced the Mazda CX-7 clean diesel model that complies with Euro5 emission regulations, the first vehicle produced by
Slide 14: China
CHINA Third quarter sales were 57,000 units, up 68% on the prior year. The sales of the first nine months this fiscal year grew 46% to 142,000 units Since November, China has become Mazda’s largest single market Mazda6 sales substantially increased with the introduction of the new model Enhanced pro
Slide 15: Other Markets
OTHER MARKETS Third quarter sales achieved growth of 17% over the prior year due to strong results in Australia, Israel, Thailand, Taiwan and others Australia third quarter sales were up 14% from the prior year and in CY2009 recorded its highest share of 8.3%, up 0.4 percentage points compared to th
Slide 16: Operating Profit Change
OPERATING PROFIT CHANGE FY2009 Nine Months Compared With FY2008 Nine Months (Billion yen) Reduced global sales Improvement FY2008 (Deterioration) 50 36.5 US Dollar (15.7) Vol & Mix Euro (22.9) Other (39.4) Others 68.1 0 FY2009 Marketing (11.0) (50) Expenses Exchange 22.2 (107.3) CR 47.5 (100) (150)
Slide 17: Operating Profit Change
OPERATING PROFIT CHANGE FY2009 Nine Months Compared With FY2008 Nine Months (Billion yen) Cost reductions of Improvement FY2008 ¥137.8 billion in total (Deterioration) 50 36.5 Vol & Mix Others 68.1 0 FY2009 Marketing (11.0) (50) Expenses Exchange 22.2 (107.3) CR 47.5 (100) (150) (78.0) 17
Slide 18: Revenue and Profit Trend
REVENUE AND PROFIT TREND 771.8 803.7 Revenue 557.6 602.1 (Billion yen) 512.4 448.0 562.1 428.2 28.3 32.4 11.1 16.0 Operating profit 5.9 (Billion yen) (24.2) (28.0) (64.9) (000) FY2008 FY2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q plan Global sales volume 358 343 263 297 263 314 287 316 Global production volume 353
Slide 19: FY2009 Full Year Forecast
FY2009 FULL YEAR FORECAST 19
Slide 20: FY2009 Financial Metrics
FY2009 FINANCIAL METRICS FY2009 Change from (Billion yen) 1Q 2Q 3Q 4Q plan Full Year FY08 Oct Fcst Revenue 428.2 562.1 557.6 602.1 2,150.0 (385.9) 20.0 Operating profit (28.0) 5.9 11.1 16.0 5.0 33.4 17.0 Ordinary profit (32.7) 3.1 10.7 18.9 0.0 18.7 16.0 Profit before tax (33.5) 1.9 10.2 15.4 (6.0)
Slide 21: Key Data
KEY DATA FY2009 Change from FY08 Full Year Change (000) 1-2Q 3-4Q Full 1-2Q 3-4Q Full from Oct TTL TTL Year TTL TTL Year Fcst Global sales volume Japan 105 113 218 (18) 17 (1) 0 North America 158 143 301 (42) (4) (46) 0 USA 106 101 207 (32) (1) (33) (6) Europe 123 115 238 (56) (28) (84) 0 China 85 1
Slide 22: Operating Profit Change
OPERATING PROFIT CHANGE FY2009 Full Year Compared With FY2008 Full Year Improvement (Billion yen) Change from FY08 + 33.4 (Deterioration) FY2009 Others 5.0 81.4 0 Vol & Mix FY2008 Marketing (60) (28.4) Expenses 25.0 Exchange CR (63.0) 68.0 (120) US Dollar (20.0) Euro (22.4) Other (35.6) (180) (78.0)
Slide 23: Operating Profit Change
OPERATING PROFIT CHANGE FY2009 Full Year Compared With FY2008 Full Year Improvement (Billion yen) Cost reductions of (Deterioration) ¥174.4 billion in total FY2009 Others 5.0 81.4 0 Vol & Mix FY2008 Marketing (60) (28.4) Expenses 25.0 Exchange CR (63.0) 68.0 (120) Fixed cost reduction of ¥106.4 bill
Slide 24: Change to a Cost Structure Which Ensures Profitability at 80% Capacity
CHANGE TO A COST STRUCTURE WHICH ENSURES PROFITABILITY WHEN PLANTS ARE OPERATING AT 80% CAPACITY / STRENGTHEN BUSINESS STRUCTURE Domestic plant utilization ratio (%) 100 % 32.4 80 % 28.3 16.0 11.1 5.9 Operating profit (Billion yen) (24.2) (28.0) (64.9) FY2008 FY2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q plan US D
Slide 25: In Summary
IN SUMMARY 25
Slide 26: In Summary
IN SUMMARY Secured profitability in all profit categories in the third quarter following the second quarter. These profit levels exceeded the second quarter results; positive cash flow maintained Operating profit for the full year is forecasted at ¥5 billion in a return to profitability Secure profi
Slide 27: Initiatives for FY2010 and Onward
INITIATIVES FOR FY2010 AND ONWARD 27
Slide 28: Initiatives for FY2010 and Onward
INITIATIVES FOR FY2010 AND ONWARD Continue profitability momentum through drastic structural reforms led by Monotsukuri Innovation While “improving brand value”, continue our product-led growth Strengthen production and sales initiatives in growing markets such as China and ASEAN Promote development
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Slide 30: Appendix
APPENDIX 30
Slide 31: Operating Profit Change
OPERATING PROFIT CHANGE FY2009 Third Quarter Compared With FY2008 Third Quarter Improvement (Billion yen) (Deterioration) 20 FY2009 Others 11.1 20.6 0 Marketing Vol & Mix Expenses 15.4 Exchange CR 2.9 18.4 (20) FY2008 (24.2) (22.0) (40) Change from FY08 + 35.3 31
Slide 32: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA (Billion yen) 803.7 771.8 69.7 Other 78.2 216.1 557.6 600 Europe 205.9 562.1 512.4 51.6 57.4 46.9 448.0 428.2 137.5 118.0 34.0 North 231.7 114.7 48.9 America 216.5 104.2 95.5 300 137.3 164.9 122.5 106.6 100.5 235.7 217.2 Japan 271.3 286.1 183.2 228.1 203.3 0 FY2008 FY2009
Slide 33: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 803.7 771.8 73.6 Other 77.4 78.8 Parts 72.2 562.1 557.6 600 512.4 62.0 55.8 448.0 73.6 428.2 57.3 59.0 Vehicle / Parts for 67.2 59.5 56.1 overseas production 62.3 53.1 622.2 651.3 300 442.8 442.7 379.3 318.5 319.1 0 FY2008 FY2009 1Q 2Q 3Q 4Q 1Q 2Q 3Q 33
Slide 34: Operating Profit Change
OPERATING PROFIT CHANGE FY2009 Feb Forecast Compared With FY2009 Oct Forecast (Billion yen) 8 February Others Forecast 5.0 4.0 Exchange CR Marketing 3 7.0 0.0 Expenses (1.0) (2) Vol & Mix 7.0 Improvement (Deterioration) (7) (12) October Forecast (12.0) Change from Oct Forecast + 17.0 (17) 34
Slide 35: Key Data
KEY DATA Change from (000) FY2009 3Q Full Year 3Q 1-3Q TTL Full Year FY2008 FY2008 Oct Pub Consolidated Wholesales Japan 45 150 218 0 (2) 0 North America 87 213 300 17 (48) 10 Europe 54 163 222 (7) (71) (3) China 3 8 15 (2) (2) 0 Other 54 140 195 (8) (43) 13 Total 243 674 950 0 (166) 20 35
Slide 36: Key Data
KEY DATA (Billion yen) ¥3 billion lower than original forecast of ¥92 billion 96.0 ¥1 billion lower than original 100 forecast of ¥78 billion Full 89.0 Full 81.8 Year Year 77.0 75.2 Tooling cost at overseas subsidiaries 50 1-3Q 1-3Q 70.4 30.0 TTL 81.2 TTL 57.4 57.4 60.1 21.1 0 FY08 FY09 FY08 FY09 FY
Slide 37: 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