Mazda Motor Corp. · TSE:7261
Mazda Motor — Q1 FY2006 Earnings Presentation
32 slides from Mazda Motor's earnings presentation, Jul 28, 2006
Slide 1: FY2006 1Q Results and Full Year Projections
MAZDA MOTOR CORPORATION FY2006 1Q RESULTS AND FULL YEAR PROJECTIONS July 28, 2006 1 FY2006 1Q Results / Full Year Projections
Slide 2: Outline
OUTLINE Overview FY2006 1Q Results FY2006 Full Year Projections U.S. Market Update 2 FY2006 1Q Results / Full Year Projections
Slide 3: Overview
OVERVIEW 3 FY2006 1Q Results / Full Year Projections
Slide 4: FY2006 1Q Highlights
FY2006 1Q HIGHLIGHTS Operating Profit up 30% to ¥29.6 billion Revenues up 9% Launched CX-7 in North America Momentum On Track Confirm Full-year Projections 4 FY2006 1Q Results / Full Year Projections
Slide 5: FY2006 1Q Results
FY2006 1Q RESULTS 5 FY2006 1Q Results / Full Year Projections
Slide 6: FY2006 1Q Financial Metrics
FY2006 1Q FINANCIAL METRICS (Billion yen) First Quarter Change FY2006 FY2005 Amount Pct. Revenue 734.3 670.8 63.5 9 % Operating Profit 29.6 22.8 6.8 30 % Ordinary Profit 24.0 21.4 2.6 12 % Profit Before Tax 22.9 0.4 22.5 - % Net Income 6.6 0.4 6.2 - % Operating ROS 4.0% 3.4% 0.6 Pts - EPS(Yen/Share)
Slide 7: Key Data
KEY DATA First Quarter FY2006 FY2005 Change WHOLESALES (000) Consolidated 272 278 (2) % EXCHANGE RATES Yen / U.S. Dollar 115 108 ¥ 7 Yen / Euro 144 135 ¥ 9 7 FY2006 1Q Results / Full Year Projections
Slide 8: Revenue Changes by Destination
REVENUE CHANGES BY DESTINATION FY2006 1Q Compared With FY2005 1Q 12% 11% Volume Volume Mix Mix 55 % % 10% Exchange Exchange 44 % % 9% 8% 6% 5% 4% 2% 0% (Billion yen) Total Domestic Overseas FY06 734.3 215.1 519.2 FY05 670.8 204.1 466.7 8 FY2006 1Q Results / Full Year Projections
Slide 9: Japan
JAPAN First Quarter FY2006 FY2005 Change Retail Sales Volume (000) 62 65 (6) % Market Share 4.7 % 4.8 % (0.1) Pts MPV Contributed Amid Sluggish Industry Demand 9 FY2006 1Q Results / Full Year Projections
Slide 10: United States
UNITED STATES First Quarter FY2006 FY2005 Change Retail Sales Volume (000) 73 71 3 % Market Share 1.7 % 1.5 % 0.2 Pts Strategic Model CX-7 Introduced 10 FY2006 1Q Results / Full Year Projections
Slide 11: Europe
EUROPE First Quarter FY2006 FY2005 Change Retail Sales Volume (000) 76 69 10 % Market Share 1.5 % 1.4 % 0.1 Pts Retail Sales up 10% Year-over-Year 11 FY2006 1Q Results / Full Year Projections
Slide 12: China
CHINA First Quarter FY2006 FY2005 Change Retail Sales Volume (000) 29 38 (24) % Market Share 1.6 % 2.5 % (0.9) Pts Mazda6 5HB Introduced 12 FY2006 1Q Results / Full Year Projections
Slide 13: Operating Profit Changes
OPERATING PROFIT CHANGES FY2006 1Q Compared with FY2005 1Q Billion yen 〔〔Factors Factors for for Profit Profit increase〕 increase〕〕〕 -- Better Better mix mix and and lower lower incentive incentive with with 15 CX-7 CX-7 launch launch in in North North America America -- Better Better global global
Slide 14: Operating Profit Changes
OPERATING PROFIT CHANGES FY2006 1Q Compared with FY2005 1Q Billion yen US$ US$ 3.0 3.0 Euro Euro 3.4 3.4 15 Other Other 2.3 2.3 10 7.9 8.7 6.8 5 0 (1.0) (1.2) FY06 1Q 29.6 (5) (3.2) FY05 1Q 22.8 (4.4) (10) Total Vol & Exch. Product Net CR Mktg. Other Oper. Mix Enhanc. Exp. Costs 14 FY2006 1Q Results
Slide 15: Operating Profit Changes
OPERATING PROFIT CHANGES FY2006 1Q Compared with FY2005 1Q Billion yen Product Product enhancement enhancement (2.8) (2.8) 15 Regulatory Regulatory action action (1.6) (1.6) 10 7.9 8.7 Material Material price price rise rise 6.8 exceeded exceeded the the effect effect of of cost cost reductions redu
Slide 16: Operating Profit Changes
OPERATING PROFIT CHANGES FY2006 1Q Compared with FY2005 1Q Billion yen 15 R&D R&D spend spend and and other other costs costs 10 7.9 8.7 6.8 Higher Higher advertising advertising 5 cost cost for for CX-7 CX-7 in in NA NA 0 (1.0) (1.2) FY06 1Q 29.6 (5) (3.2) FY05 1Q 22.8 (4.4) (10) Total Vol & Exch.
Slide 17: FY2006 Full Year Projections
FY2006 FULL YEAR PROJECTIONS 17 FY2006 1Q Results / Full Year Projections
Slide 18: FY2006 Financial Metrics
FY2006 FINANCIAL METRICS (Billion yen) Full Year Change FY2006 FY2005 Amount Pct. Revenue 3,100.0 2,919.8 180.2 6 % Operating Profit 135.0 123.4 11.6 9 % Ordinary Profit 130.0 101.5 28.5 28 % Profit Before Tax 120.0 117.5 2.5 2 % Net Income 75.0 66.7 8.3 12 % Operating ROS 4.4% 4.2% 0.2 Pts - EPS(Ye
Slide 19: U.S. Market Update
U.S. MARKET UPDATE 19 FY2006 1Q Results / Full Year Projections
Slide 20: U.S. Market Plans (May 2004)
U.S. MARKET PLANS (MAY 2004) U.S. Focused Product Strategy Efficient Marketing Investment Improve Residual Values Exclusive Dealer Plan Lower Incentive Spending 20 FY2006 1Q Results / Full Year Projections
Slide 21: FY2006 Product Actions
FY2006 PRODUCT ACTIONS Seven product launches in FY2006: CX-7, MAZDASPEED3, MX-5 Power Retractable Hardtop, MAZDA3, Tribute, Tribute Hybrid, and CX-9 21 FY2006 1Q Results / Full Year Projections
Slide 22: Media Accolades
MEDIA ACCOLADES CX-7: “…truly a cross between an urban SUV and open-road sports car.” – MPH May 2006 “Mazda’s new CX-7 possesses excellent handling and good power.” – Road & Track June 2006 “This Mazda channels the spirit of the Porsche Cayenne and the Range Rover Sport better than anything else in
Slide 23: Mazda Customers Are Youngest in the Industry
MAZDA CUSTOMERS ARE YOUNGEST IN THE INDUSTRY Median Age Trend: 2006* 55 53 51 51 50 49 47 45 43 42 41 39 Source: Maritz 2006 37 *NOTE: Preliminary 2006 Maritz data; small sample; excludes RX-8 35 Mazda Industry Japanese Non-Luxury Ave. Mazda customers are now the youngest in the industry. 23 FY2006
Slide 24: Mazda Residual Value (36 Months)
MAZDA RESIDUAL VALUE (36 Months) 48% 47% 46% 46% 44% 43% 42% 40% 2004 2005 2006 Source: Automotive Lease Guide Mazda’s residual value has increased 24 FY2006 1Q Results / Full Year Projections
Slide 25: Exclusive Dealers
EXCLUSIVE DEALERS Sales and Service Points - % Exclusive Percent 50% 50 43% 40 33% 30 24% 18% 20 10 0 FY02 FY03 FY04 FY05 FY06 On target to achieve 50% objective 25 FY2006 1Q Results / Full Year Projections
Slide 26: Retail Revolution
RETAIL REVOLUTION 26 FY2006 1Q Results / Full Year Projections
Slide 27: Market Actions: Phoenix Example
MARKET ACTIONS: PHOENIX EXAMPLE 2.5 2.0% 2.0 1.5 1.2% No. of Dealerships 2003 2006 1.0 Exclusive Retail -- 2 Revolution Exclusive 1 3 0.5 Dual/SSR 5 2 TOTAL 6 7 0.0 2003 2006 Phoenix Market Share Exclusive and Retail Revolution market actions have led to market share improvement. 27 FY2006 1Q Result
Slide 28: U.S. Variable Marketing
U.S. VARIABLE MARKETING $3,500 $3,000 $2,500 $2,000 $1,500 $1,000 $500 $0 2004 FY2006 Q1 Mazda has reduced its per unit Variable spend since 2004. 28 FY2006 1Q Results / Full Year Projections
Slide 29: U.S. Market Sales and Share
U.S. MARKET SALES AND SHARE 295,000 1.75 1.70 1.7 285,000 1.65 Sales 275,000 Share 1.58 1.6 265,000 1.55 255,000 1.5 245,000 1.45 FY2004 FY2006 Improvements in Mazda product, marketing, and network are resulting in U.S. market share gains. 29 FY2006 1Q Results / Full Year Projections
Slide 30: FY2006 U.S. Market Plans
FY2006 U.S. MARKET PLANS U.S. Focused Product Strategy Efficient Marketing Investment Vehicle Residual Values Exclusive Dealer Plan Lower Incentive Spending Better Retail/Fleet Sales Mix Improved Profit Contribution Continue US momentum by executing our strategy. 30 FY2006 1Q Results / Full Year Pro
Slide 31: 31 FY2006 1Q Results / Full Year Projections
31 FY2006 1Q Results / Full Year Projections
Slide 32: Disclaimer
DISCLAIMER The projections for FY2006 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 awa