Mazda Motor Corp. · TSE:7261
Mazda Motor — H1 FY2001 Earnings Presentation
46 slides from Mazda Motor's earnings presentation, Nov 12, 2001
Slide 1: FY2001 Interim Earnings Announcement
MAZDA MOTOR CORPORATION FY2001 INTERIM FY2001 INTERIM EARNINGS EARNINGS ANNOUNCEMENT ANNOUNCEMENT NOVEMBER 12, 2001 FY2001 Interim Earnings 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE PRESENTATION OUTLINE Overview 1st Half Results Full Year Outlook Attachments – 1st Half – Full Year • Key Assumptions • Consolidated Results & Outlook • Unconsolidated Results & Outlook • Volume & Shares • Wholesales and Production FY2001 Interim Earnings 2
Slide 3: Overview
OVERVIEW OVERVIEW 1st Half In Line With October Guidance Second Half Net Breakeven Full Year Profitable Positive Cash Flow Outlook Unchanged Final Dividend Planned FY2001 Interim Earnings 3
Slide 4: FY2001 1st Half Results
FY2001 1 st HALF RESULTS FY2001 1 HALF RESULTS st FY2001 Interim Earnings 4
Slide 5: Financial Metrics – 1st Half
FINANCIAL METRICS – 1ST HALF FINANCIAL METRICS – 1 HALF ST Better/(Worse) Than (Oku yen) 1st Half May Prior Year Revenue 10,382 (318) 321 Operating Profit 112 182 159 Ordinary Profit 48 188 214 Profit Before Tax 58 238 265 Net Income 13 108 108 Return On Sales 0.1 % 1.0 Pts 1.1 Pts Return On Assets
Slide 6: Net Debt & Cash Flow – 1st Half
NET DEBT & CASH FLOW – 1 ST HALF NET DEBT & CASH FLOW – 1 HALF ST Better/(Worse) Than (Oku yen) Prior 1st Half May Year End Cash & Cash Equivalents 2,345 10 (581) Borrowing 7,597 398 175 NET DEBT 5,252 408 (406) CASH FLOW (416) 434 NA Net Debt-To-Equity 324 % 55 Pts (19) Pts Capital Spending 211 69
Slide 7: FY2001 Full Year Outlook
FY2001 FULL FY2001 FULL YEAR YEAR OUTLOOK OUTLOOK FY2001 Interim Earnings 7
Slide 8: Full Year Overview
FULL YEAR FULL YEAR OVERVIEW OVERVIEW Full Year Profitable Revenue Lower Than May Plan But Up Versus Prior Year Cost Reductions Increased Yen Mixed Versus Major Currencies Additional Subsidiary Sales Cash Flow Positive ¥50 Oku Final Dividend Of ¥2 Per Share Job #1 In 2nd Half For Lar
Slide 9: Key Assumptions
KEY ASSUMPTIONS KEY ASSUMPTIONS Proj. Full Ye ar B/(W) Tha n FY2001 May Prior Ye a r INDUSTRY VOLUM E (000) Ja pa n 5,834 (166) (139) U.S. 16,686 336 (507) We ste rn Europe 16,771 171 (245) M ARKET SHA RES (PCT.) Ja pa n 4.7 % 0.0 Pts. (0.4) Pts U.S. 1.7 0.0 0.2 We ste rn Europe 0.9 (0.1) (0.3) WHOL
Slide 10: Financial Metrics
FINANCIAL METRICS FINANCIAL METRICS Proj. Better/(Worse) Than (Oku yen) FY2001 May Prior Year Revenue 20,900 (500) 742 Operating Profit 170 0 319 Ordinary Profit 20 0 317 Profit Before T ax 70 50 2,494 Net Income 13 13 1,565 Return On Sales 0.1 % 0.1 Pts 7.8 Pts Return On Assets 0.1 % 0.1 Pts 10.0 P
Slide 11: Geographic Revenue
GEOGRAPHIC REVENUE GEOGRAPHIC REVENUE FY2000 May November 21,400 20,900 20,158 25,000 16,588 15,894 16,116 20,000 15,000 7,703 6,988 5,911 10,000 1,936 1,738 1,697 993 5,000 905 705 0 Total* Japan NA Europe ROW * Including Inter-Segment Elimination FY2001 Interim Earnings 11
Slide 12: Geographic Net Income
GEOGRAPHIC NET GEOGRAPHIC NET INCOME INCOME (Oku yen) Proj. Better/(Worse) Than FY2001 May Prior Year Japan Parent 110 50 1,385 Subsidiaries 93 18 193 Total Japan* 10 60 1,506 North America 37 17 68 Europe (53) (53) (11) Rest Of World 19 (11) 2 Total 13 13 1,565 * Including Consolidation Adjustments
Slide 13: Profit Changes
PROFIT CHANGES PROFIT CHANGES (Oku yen) Better/(Worse) Than May Prior Year Volume & Mix (161) (446) Exchange Rates Net Of Pricing 15 205 Cost Reductions 29 254 Fixed Costs & Other 157 400 OPERATING PROFIT 40 413 Non-Operating Items 0 10 ORDINARY PROFIT 40 423 Extraordinary Items 50 1,933 PROFIT BEFO
Slide 14: Net Debt & Cash Flow
NET DEBT NET DEBT & & CASH CASH FLOW FLOW Better/(Worse) Than (Oku yen) Proj. Prior FY2001 May Year End Cash & Cash Equivalents 2,163 (305) (763) Borrowing 6,762 426 1,010 NET DEBT 4,599 121 247 CASH FLOW 50 0 NA Net Debt-To-Equity 287 % 9 Pts 18 Pts Capital Spending 630 40 (158) DIVIDEND PER SHARE
Slide 15: 1st Half & 2nd Half Comparisons
11st st HALF & 2ND HALF HALF & 2 ND HALF COMPARISONS COMPARISONS FY2001 Interim Earnings 15
Slide 16: Key Assumptions – 2nd vs 1st
KEY ASSUMPTIONS – 2nd VS 1st KEY ASSUMPTIONS – 2 VS 1 nd st 2nd B/(W) 1st Half 2nd Half 1st Half INDUSTRY VOLUM E (000) Japa n 2,808 3,026 7.8 % U.S. 8,592 8,094 (5.8) Western Europe 9,279 7,492 (19.3) MARKET SHARES (PCT.) Japa n 4.9 % 4.5 % (0.4) Pts. U.S. 1.6 1.7 0.1 Western Europe 0.9 0.9 0.0 WHO
Slide 17: Financial Metrics – 2nd vs 1st
FINANCIAL METRICS – 2nd VS 1st FINANCIAL METRICS – 2 VS 1 nd st 2nd Half Proj. B/(W) (Oku ye n) 1st Half 2nd Half 1st Half Revenue 10,382 10,518 136 Operating Profit 112 58 (54) Ordinary Profit 48 (28) (76) Profit Before Tax 58 12 (46) Net Income 13 0 (13) Return On Sales 0.1 % 0.0 % (0.1) Pts Retur
Slide 18: Product & Marketing Actions
PRODUCT & PRODUCT & MARKETING MARKETING ACTIONS ACTIONS Japan 3rd Qtr. 4th Qtr. Premacy Freshening Tribute Upgrade Field Break Demio Purel & Aeroactive Other Special Versions U.S. Protégé 5 MPV Freshening Job #1 Special Versions Europe Premacy Freshening Mazda 6/Hiroshima I-4 Job #1 Special Versions
Slide 19: Millennium Plan Deliverables
MILLENNIUM PLAN MILLENNIUM PLAN DELIVERABLES DELIVERABLES METRIC MAY PLAN OUTLOOK Uncons. Net Income ¥60 Oku ¥110 Oku Consol. Operating Income ¥170 Oku ¥170 Oku Consol. Net Income ¥0 Oku ¥13 Oku Consol. Cash Flow ¥50 Oku ¥50 Oku Customer Satisfaction YOY Report In 2nd Improvement Half Growth & Reven
Slide 20: Millennium Plan Deliverables
MILLENNIUM PLAN MILLENNIUM PLAN DELIVERABLES DELIVERABLES METRIC MAY PLAN OUTLOOK Product Launch Hiroshima New I4 & On Track Mid-Size Vehicle Distribution Europe – Control 70%+ Completed Japan – Profitable/CF+ On Track Capacity Close Ujina 2 Completed People MBLD II Completed Stock Options Completed
Slide 21: Full Year Summary
FULL YEAR FULL YEAR SUMMARY SUMMARY Will Meet Millennium Plan Financial Commitments Except Revenue Growth Will Be Profitable Will Generate Positive Cash Flow and Reduce Net Debt Will Launch The First Of Our Next- Generation Products Expect To Meet All Other Operating Commitments Will Dec
Slide 22: FY2001 Interim Earnings 22
FY2001 Interim Earnings 22
Slide 23: Attachments: 1st Half Results
ATTACHMENTS ATTACHMENTS 1ST HALF RESULTS FY2001 Interim Earnings 23
Slide 24: 1st Half Key Assumptions
1 ST HALF KEY ASSUMPTIONS 1 HALF KEY ASSUMPTIONS ST B/(W) Than Actual May Prior Year INDUSTRY VOLUM E (000) Japa n 2,808 (2.2) % (0.3) % U.S. 8,592 0.7 (4.7) W estern Europe 9,279 2.4 (1.6) M ARKET SHARES (PCT.) Japa n 4.9 % (0.1) Pts. (0.5) Pts. U.S. 1.6 (0.1) 0.2 W estern Europe 0.9 (0.1) (0.4) W
Slide 25: 1st Half Geographic Net Income
1st HALF GEOGRAPHIC NET INCOME 1 HALF GEOGRAPHIC NET INCOME st (Oku yen) Better/(Worse) Than 1st Half May Prior Year Japan Parent 67 87 194 Subsidiaries 47 8 (5) Total Japan * 11 113 51 North America 29 2 48 Europe (34) (5) (4) Rest Of World 7 (2) 13 Total 13 108 108 * Including Consolidation Adjust
Slide 26: 1st Half Profit Changes
1 ST HALF PROFIT CHANGES 1 HALF PROFIT CHANGES ST (Oku yen) Better/(Worse) Than May Prior Year Volume & Mix 13 (198) Exchange Rates Net Of Pricing 34 3 Cost Reductions 23 124 Fixed Costs & Other 77 292 OPERATING PROFIT 147 221 Non-Operating Items 12 51 ORDINARY PROFIT 159 272 Extraordinary Items (5)
Slide 27: Financial Metrics – 1st Half Unconsolidated
FINANCIAL METRICS -- 1ST HALF UNCONS. FINANCIAL METRICS -- 1 HALF UNCONS. ST Better/(Worse) Than (Oku yen) 1st Half May Prior Year Revenue 6,735 135 107 Operating Profit 87 147 221 Ordinary Profit 109 159 272 Profit Before Tax 94 154 308 Net Income 67 87 194 Return On Sales 1.0 % 1.3 Pts 2.9 Pts Ret
Slide 28: Japan Volume – 1st Half
JAPAN VOLUME – 1ST HALF JAPAN VOLUME – 1 HALF ST O v e r/(Unde r) Actual M ay Prior Ye ar RE GISTER ED Industry (000) 1,946 (3.7) % 0.9 % M azda M arke t Share 6.1 % 0.0 Pts (0.7) Pts M azda Re tail (000) 119 (4.7) % (10.1) % M ICRO Industry (000) 862 1.6 % (2.9) % M azda M arke t Share 2.2 % (0.1)
Slide 29: U.S. Volume – 1st Half
U.S. VOLUME – 1 ST HALF U.S. VOLUME – 1 HALF ST Over/(Under) Actual May Prior Year Industry (000) 8,592 0.7 % (4.7) % Mazda Market Share 1.6 % (0.1) Pts 0.2 Pts Mazda Retail (000) 141 (0.9) % 12.9 % FY2001 Interim Earnings 29
Slide 30: Western Europe Volume – 1st Half
WESTERN EUROPE VOLUME – 1 ST HALF WESTERN EUROPE VOLUME – 1 HALF ST Over/(Under) Actual May Prior Year Industry (000) 9,279 2.4 % (1.6) % Mazda Market Share 0.9 % (0.1) Pts (0.4) Pts Mazda Retail (000) 83 (5.8) % (30.1) % Memo: Total Europe 89 (5.2) % (28.6) % FY2001 Interim Earnings 30
Slide 31: Canada Volume – 1st Half
CANADA VOLUME – 1 ST HALF CANADA VOLUME – 1 HALF ST Over/(Under) Actual May Prior Year Industry (000) 809 1.6 % (1.8) % Mazda Market Share 4.2 % 0.3 Pts 1.1 Pts Mazda Retail (000) 34 9.7 % 33.7 % FY2001 Interim Earnings 31
Slide 32: Australia Volume – 1st Half
AUSTRALIA VOLUME – 1 ST HALF AUSTRALIA VOLUME – 1 HALF ST Over/(Under) Actual May Prior Year Industry (000) 375 3.0 % 7.2 % Mazda Market Share 4.7 % (0.1) Pts 0.9 Pts Mazda Retail (000) 18 1.6 % 32.3 % FY2001 Interim Earnings 32
Slide 33: Mazda Wholesales & Production – 1st Half
MAZDA WHOLESALES MAZDA WHOLESALES & & PRODUCTION PRODUCTION ––11ST ST HALF HALF (000) Over/(Under) Actual May Prior Year WHOLESALES Japan 147 (3) (20) North America 113 14 28 Europe 74 1 (7) Rest of World 86 (4) 6 Total 420 8 7 Memo: Excl. Outsourced Vehicles 375 9 5 PRODUCTION Domestic 125 (3) (16)
Slide 34: Consolidated Wholesales & Production – 1st Half
CONS. WHOLESALES CONS. WHOLESALES & &PRODUCTION PRODUCTION –– 11ST ST HALF HALF (000) Over/(Under) Actual May Prior Year WHOLESALES Japan 147 (3) (19) North America 184 7 37 Europe 75 (2) (25) Rest of World 87 (4) 6 Total 493 (2) (1) PRODUCTION Japan 146 (2) (19) North America 184 9 23 Europe 73 2 (
Slide 35: Attachments: Full Year Outlook
ATTACHMENTS ATTACHMENTS FULL YEAR OUTLOOK FY2001 Interim Earnings 35
Slide 36: Key Assumptions
KEY ASSUMPTIONS KEY ASSUMPTIONS 1st Half 2nd Half Full Year INDUSTRY VOLUME (000) Japan 2,808 3,026 5,834 U.S. 8,592 8,094 16,686 Weste rn Europe 9,279 7,492 16,771 MARKET SHARES (PCT.) Japan 4.9 % 4.5 % 4.7 % U.S. 1.6 1.7 1.7 Weste rn Europe 0.9 0.9 0.9 WHOLESALES & PROD. (000) Unconsolidated Whole
Slide 37: Financial Metrics – Consolidated
FINANCIAL METRICS FINANCIAL METRICS –– CONS. CONS. (Oku yen) Proj. Proj. FY2001 B/(W) T han 1st Half 2nd Half FY2001 May Prior Year Rev enue 10,382 10,518 20,900 (500) 742 Ope rating Profit 112 58 170 0 319 Ordinary Profit 48 (28) 20 0 317 Profit Before T ax 58 12 70 50 2,494 Net Income 13 0 13 13 1
Slide 38: Financial Metrics – Unconsolidated
FINANCIAL METRICS FINANCIAL METRICS –– UNCONS. UNCONS. (Oku yen) Proj. Proj. FY2001 B/(W) T han 1st Half 2nd Half FY2001 May Prior Year Rev enue 6,735 6,865 13,600 (500) 373 Ope rating Profit 87 13 100 40 413 Ordinary Profit 109 (9) 100 40 423 Profit Before T ax 94 76 170 90 2,356 Net Income 67 43 1
Slide 39: Japan Volume
JAPAN VOLUME JAPAN VOLUME Proj. Proj. FY2001 O ve r/(Unde r) RE GIS TE RE D 1st Half 2nd H alf FY2001 May Prior Ye ar Industry (000) Se dan 685 777 1,462 (3.3) % (5.8) % RV 847 920 1,767 (3.1) 3.4 Other 414 393 807 (6.8) (5.9) Total 1,946 2,090 4,036 (3.9) % (2.0) % Maz da M arket Share 6.1 % 5.5 %
Slide 40: U.S. Volume
U.S. VOLUME U.S. VOLUME Proj. Proj. FY2001 Over/(Under) 1st Half 2nd Half FY2001 May Prior Year Industry (000) 8,592 8,094 16,686 2.1 % (2.9) % Mazda Market Share 1.6 % 1.7 % 1.7 % 0.0 Pts 0.2 Pts Mazda Retail (000) 141 137 278 2.8 % 8.7 % FY2001 Interim Earnings 40
Slide 41: Western Europe Volume
WESTERN EUROPE WESTERN EUROPE VOLUME VOLUME Proj. Proj. FY2001 Over/(Under) 1st Half 2nd Half FY2001 May Prior Year Industry (000) 9,279 7,492 16,771 1.0 % (1.4) % Mazda Market Share 0.9 % 0.9 % 0.9 % (0.1) Pts (0.3) Pts Mazda Retail (000) 83 66 149 (6.7) % (24.8) % Memo: Total Europe 89 71 160 (6.3
Slide 42: Canada Volume
CANADA VOLUME CANADA VOLUME Proj. Proj. FY2001 Over/(Under) 1st Half 2nd Half FY2001 May Prior Year Industry (000) 809 748 1,557 2.4 % (1.9) % Mazda Market Share 4.2 % 4.7 % 4.4 % 0.4 Pts 1.1 Pts Mazda Retail (000) 34 35 69 13.4 % 32.6 % FY2001 Interim Earnings 42
Slide 43: Australia Volume
AUSTRALIA VOLUME AUSTRALIA VOLUME Proj. Proj. FY2001 Over/(Under) 1st Half 2nd Half FY2001 May Prior Year Industry (000) 375 384 759 (2.8) % (3.6) % Mazda Market Share 4.7 % 4.3 % 4.5 % (0.1) Pts 1.0 Pts Mazda Retail (000) 18 16 34 (5.7) % 23.6 % FY2001 Interim Earnings 43
Slide 44: Mazda Wholesales & Production
MAZDA WHOLESALES MAZDA WHOLESALES & & PRODUCTION PRODUCTION (000) Proj. Proj. FY2001 Over/(Under) 1st Half 2nd Half FY2001 May Prior Year WHOLESALES Japan 147 145 292 (11) (45) North America 113 112 225 27 47 Europe 74 72 146 (32) (12) Rest of World 86 71 157 (22) 3 Total 420 400 820 (38) (7) Memo:
Slide 45: Consolidated Wholesales & Production
CONS. WHOLESALES CONS. WHOLESALES & & PRODUCTION PRODUCTION (000) Proj. Proj. FY2001 Ove r/(Under) 1st Half 2nd Half FY2001 May Prior Ye ar WHOLESALES Japan 147 145 292 (11) (42) North America 184 164 348 22 48 Europe 75 72 147 (15) (28) Rest Of World 87 76 163 (24) 8 Total 493 457 950 (28) (14) PRO
Slide 46: FY2001 Interim Earnings 46
FY2001 Interim Earnings 46