Mazda Motor Corp. · TSE:7261

Mazda Motor — Q1 FY March 2017 Earnings Presentation

31 slides from Mazda Motor's earnings presentation, July 2016

  1. Slide 1: Fiscal Year March 2017 First Quarter Financial Results

    FISCAL YEAR MARCH 2017 FIRST QUARTER FINANCIAL RESULTS

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2017 First Quarter Results  Fiscal Year March 2017 Full Year Forecast  Progress of Key Initiatives Mazda Motor Corporation 1

  3. Slide 3: Highlights

    HIGHLIGHTS Mazda Motor Corporation 2

  4. Slide 4: Highlights

    HIGHLIGHTS 【First Quarter Results】  Global sales were up 1% from the prior year to 375,000 units, a new record for the first quarter  Revenue was ¥776.2 billion, operating profit was ¥52.4 billion (ROS 6.8%) and net income was ¥21.2 billion  Introduced New CX-9 in North America and New CX-4 in Ch

  5. Slide 5: Fiscal Year March 2017 First Quarter Results

    FISCAL YEAR MARCH 2017 FIRST QUARTER RESULTS Mazda Motor Corporation 4

  6. Slide 6: FY March 2017 Global Sales Volume

    FY MARCH 2017 GLOBAL SALES VOLUME First Quarter FY March FY March Change from (000) 2016 2017 Prior Year Global sales volume Volume YOY(%) Japan 57 39 (18) (31)% North America 116 113 (3) (2)% Europe 54 66 12 22% China 57 59 2 3% Other Markets 86 98 12 14% Total 370 375 5 1% <Breakdown> USA 81 81 0

  7. Slide 7: Japan

    JAPAN  Sales were 39,000 units, down 31% year-on-year  Market share was 3.6%, down 1.6 points year-on-year. Registered vehicle market share was 4.2%, down 2.8 points year- Mazda6/Atenza on-year  Sales volume dropped because First Quarter Sales Volume last year’s new model effect for (000) Demio a

  8. Slide 8: North America

    NORTH AMERICA  Sales were 113,000 units, down 2% year-on-year  USA: Sales were 81,000 units, on par with last year - New CX-9, launched in May, New CX-9 got off to a smooth start - CX-3 and New MX-5 contributed to sales First Quarter Sales Volume (000)  Mexico: Sales were 11,000 116 (2)% 113 unit

  9. Slide 9: Europe

    EUROPE  Sales were 66,000 units, up 22% year-on-year  Strong sales of CX-3 and New MX-5 contributed to sales growth  Sales in Europe excluding Russia CX-5 grew 25% year-on-year to 61,000 units, far outpacing overall demand growth First Quarter Sales Volume - Germany: 16,000 units, up 17% (000) ye

  10. Slide 10: China

    CHINA  Sales were 59,000 units, up 3% year-on-year  New CX-4 was fully launched in June and is selling well  Mazda3 led sales, thanks in part New CX-4 to the continued compact car tax reduction scheme First Quarter Sales Volume  Updated CX-5 continued to (000) contribute to sales volume 57 3% 59

  11. Slide 11: Other Markets

    OTHER MARKETS  Sales were 98,000 units, up 14% year-on-year  Australia: Sales were 31,000 units, up 8% year-on-year and market share was 9.8% - Second highest-selling brand CX-3 - CX-3 and CX-5 are the best sellers in their segments First Quarter Sales Volume  ASEAN: Sales were 27,000 units, (000

  12. Slide 12: FY March 2017 Financial Metrics

    FY MARCH 2017 FINANCIAL METRICS First Quarter FY March FY March Change from (Billion yen) 2016 2017 Prior Year Amount YOY(%) Revenue 806.0 776.2 (29.8) (4)% Operating profit 53.3 52.4 (0.9) (2)% Ordinary profit 54.6 44.9 (9.7) (18)% Profit before tax 53.9 39.4 (14.5) (27)% Net income 36.8 21.2 (15.6

  13. Slide 13: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2017 1st Quarter vs. FY March 2016 1st Quarter Improvement (Billion yen) Improve profitability (Deterioration) USD (4.7) EUR (5.4) 90 with new CX-9 and CAD (6.0) AUD (7.5) new MX-5 GBP (2.8) Other (7.5) Volume & Mix FY March + 11.3 Exchange FY March 2016 2017 Marketi

  14. Slide 14: Fiscal Year March 2017 Full Year Forecast

    FISCAL YEAR MARCH 2017 FULL YEAR FORECAST Mazda Motor Corporation 13

  15. Slide 15: FY March 2017 Global Sales Volume

    FY MARCH 2017 GLOBAL SALES VOLUME Full Year FY March FY March Change from (000) 2016 2017 Prior Year Volume YOY(%) Global sales volume Japan 232 233 1 0% North America 438 449 11 3% Europe 257 260 3 1% China 235 238 3 1% Other Markets 372 370 (2) (1)% Total 1,534 1,550 16 1% <Breakdown> USA 306 325

  16. Slide 16: FY March 2017 Financial Metrics

    FY MARCH 2017 FINANCIAL METRICS Full Year FY March FY March Change from (Billion yen) 2016 2017 Prior Year Amount YOY(%) Revenue 3,406.6 3,280.0 (126.6) (4)% Operating profit 226.8 170.0 (56.8) (25)% Ordinary profit 223.6 176.0 (47.6) (21)% Profit before tax 167.0 169.0 2.0 1% Net income 134.4 115.0

  17. Slide 17: Progress of Key Initiatives

    PROGRESS OF KEY INITIATIVES Mazda Motor Corporation 16

  18. Slide 18: Progress of Key Initiatives

    PROGRESS OF KEY INITIATIVES  Expand and continue to advance the SKYACTIV lineup ⁃ Introduced New CX-9 in North America and New CX-4 in China and both models are off to a good start ⁃ Launched in July, updated Mazda3 features G-Vectoring Control, the first of the SKYACTIV-VEHICLE DYNAMICS new-genera

  19. Slide 19: Progress of Key Initiatives

    PROGRESS OF KEY INITIATIVES  Global production footprint - Good progress in efforts to maximize production efficiency, including preparing for CX-3 production at Hofu Plant  Global alliances - Reached an OEM supply agreement with Isuzu regarding a next-generation pick-up truck  Refinanced the sub

  20. Slide 20: Mazda Motor Corporation

    Mazda Motor Corporation 19

  21. Slide 21: Appendix

    APPENDIX Mazda Motor Corporation 20

  22. Slide 22: Cash Flow and Net Debt

    CASH FLOW AND NET DEBT FY March 2016 FY March 2017 Change from (Billion yen) Full Year First Quarter Prior FY End Cash Flow - From Operating activities 262.8 30.5 - - From Investing activities (108.1) (23.8) - - Free Cash Flow 154.7 6.7 - Cash and Cash Equivalents 568.7 520.7 (48.0) Net Debt 48.4 46

  23. Slide 23: Revenue by Region

    REVENUE BY REGION (Billion yen) 894.5 858.8 900 847.3 806.0 776.2 135.8 151.6 143.7 Other 126.7 125.6 183.8 Europe 166.6 600 144.0 180.6 154.1 304.6 277.3 North 291.0 284.6 America 281.4 300 Japan 244.3 270.3 271.2 230.5 215.1 0 1Q 2Q 3Q 4Q 1Q FY March 2016 FY March 2017 Mazda Motor Corporation 22

  24. Slide 24: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 894.5 847.3 858.8 900 806.0 56.9 776.2 61.8 56.8 69.3 Other 53.5 61.6 61.8 56.1 Parts 59.0 57.3 600 Vehicles / 775.8 Parts for 693.5 728.9 727.7 662.8 300 Overseas Production 0 1Q 2Q 3Q 4Q 1Q FY March 2016 FY March 2017 Mazda Motor Corporation 23

  25. Slide 25: Revenue Change

    REVENUE CHANGE FY March 2017 1st Quarter vs. FY March 2016 1st Quarter (Billion yen) FY March 2017 776.2 Japan (6)% FY March 2016 806.0 Overseas 12% 8% 6% 3% (2)% (4)% (7)% (10)% (12)% Total Volume & Mix Exchange Mazda Motor Corporation 24

  26. Slide 26: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES First Quarter FY March FY March Change from (000) 2016 2017 Prior Year Global sales volume Volume YOY(%) Japan 57 39 (18) (31)% North America 116 113 (3) (2)% Europe 54 66 12 22% China 57 59 2 3% Other Markets 86 98 12 14% Total 370 375 5 1% Consolidat

  27. Slide 27: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from (000) 2016 2017 Prior Year Global sales volume Volume YOY(%) Japan 232 233 1 0% North America 438 449 11 3% Europe 257 260 3 1% China 235 238 3 1% Other Markets 372 370 (2) (1)% Total 1,534 1,550 16 1% Consolidat

  28. Slide 28: FY March 2017 Operating Profit Change

    FY March 2017 OPERATING PROFIT CHANGE 【Volume & Mix / Exchange rates】 【Exchange】 Improve profitability by introducing new models (15.6) including new CX-9 and updated models. USD EUR (14.9) Mitigate exchange impact by market mix CAD (12.9) AUD (13.8) management for better profitability and pricing a

  29. Slide 29: Exchange Rates

    EXCHANGE RATES Full Year FY March FY March （Yen） 2016 2017 Change US Dollar 120 110 (10) Euro 133 125 (8) Canadian Dollar 92 83 (9) Australian Dollar 89 83 (6) British Pound 181 160 (21) Mazda Motor Corporation 28

  30. Slide 30: Key Data

    KEY DATA (Billion yen) 150 125.0 Full 116.6 Year 105.0 100 Full 89.2 Year Full 83.0 79.0 Year 50 27.0 28.9 1Q 19.2 19.5 1Q 16.7 13.3 1Q 0 FY March FY March FY March FY March FY March FY March 2016 2017 2016 2017 2016 2017 Capital Depreciation R&D Cost Expenditures Cost Mazda Motor Corporation 29

  31. Slide 31: 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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