Mazda Motor Corp. · TSE:7261
Mazda Motor — Q3 FY March 2013 Earnings Presentation
46 slides from Mazda Motor's earnings presentation, Feb 6, 2013
Slide 1: Fiscal Year End March 2013 Third Quarter Financial Results
FISCAL YEAR END MARCH 2013 THIRD QUARTER FINANCIAL RESULTS New Mazda6 Wagon (European model) Mazda Motor Corporation February 6, 2013 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights Fiscal Year March 2013 Nine Month Results Fiscal Year March 2013 Full Year Forecast Structural Reform Plan Update Summary 2
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: Highlights (1) – Nine Month Results
HIGHLIGHTS (1) – NINE MONTH RESULTS Continued from the 2nd Quarter to achieve profitability in all profit categories in the 3rd Quarter Revenue was ¥1,535.2 billion. Operating profit was ¥19.6 billion. Net income was ¥25.6 billion Strong selling CX-5 has largely contributed to the improvement Global
Slide 5: Highlights (2) - Full Year Forecast
HIGHLIGHTS (2) - FULL YEAR FORECAST Revised revenue and all profit categories upward Forecast revenue of ¥2,190 billion, operating profit of ¥45 billion and net income of ¥26 billion Launch new Mazda6/Atenza into North America and other major markets following the introduction in Japan and Europe SK
Slide 6: Fiscal Year End March 2013 Nine Month Results
FISCAL YEAR END MARCH 2013 NINE MONTH RESULTS 6
Slide 7: FY End March 2013 Financial Metrics
FY END MARCH 2013 FINANCIAL METRICS Nine Months FY End March 2013 Change from (Billion yen) 1st Half 3rd Quarter Nine Months Prior Year Revenue 1,023.5 511.7 1,535.2 116.9 Operating profit 11.5 8.1 19.6 73.9 Ordinary profit 0.4 21.0 21.4 79.5 Profit before tax 7.3 22.8 30.1 96.6 Net income 5.7 19.9
Slide 8: Global Sales Volume
GLOBAL SALES VOLUME Nine Months FY End March 2013 Change from 1st Half 3rd Quarter Nine Months Prior Year Global sales volume (000) Japan 110 40 150 13 North America 182 88 270 4 USA 127 68 195 9 Europe 85 34 119 (10) China 90 39 129 (36) Other Markets 146 79 225 31 Australia 51 26 77 12 ASEAN 49 29
Slide 9: Japan
JAPAN Nine month total sales were 150,000 units, up 9% year on year CX-5 was named Japan Car of the Year. It was also the best New Atenza selling SUV in Japan in Nine Month Sales Volume (000) CY2012 9% 150 New Atenza got off to a good 137 start 100 Diesel mix of CX-5 and new Atenza was higher than o
Slide 10: North America
NORTH AMERICA Nine month total sales were 270,000 units, up 2% year on year US: 195,000 units, up 5% year on year - The growth is attributable to the CX-5 (North American model) increased sales of CX-5 as well Nine Month Sales Volume as SKYACTIV Mazda3 (000) - Models with SKYACTIV 300 technologies a
Slide 11: Europe
EUROPE Nine month total sales were 119,000 units Launched the new Mazda6 in Germany and other countries. The product enjoys high acclaim, CX-5 (European model) including first position in the Nine Month Sales Volume medium car comparison conducted by Autobild in (000) Germany 129 119 Germany: Marked
Slide 12: China
CHINA Nine month total sales were 129,000 units Sales are gradually recovering New Mazda3 Xingcheng as the China issue subsides New company, ‘Changan (000) Nine Month Sales Volume Mazda Automobile (CMA)’ was 165 established after obtaining an approval to restructure CFMA 129 (22)% Sales outlet count
Slide 13: Other Markets
OTHER MARKETS Nine month total sales were 225,000, up 16% year on year Australia: Marked record high sales of 104,000 units and share of 9.3% in CY2012 Facelifted CX-9 (Australian model) - Became the first import brand to exceed 100,000 units. 3rd in the Nine Month Sales Volume sales ranking by bran
Slide 14: Operating Profit Change
OPERATING PROFIT CHANGE FY End March 2013 Nine Months vs. FY End March 2012 Nine Months FY March (Billion yen) 2013 Effects of CX-5 Other + 17.0 19.6 20 Cost Improvement Marketing + 27.2 Expense 0 (1.9) Vol. & Mix + 33.2 Exchange (20) (1.6) (40) US Dollar +3.9 Improvement Euro (6.3) (Deterioration)
Slide 15: Fiscal Year End March 2013 Full Year Forecast
FISCAL YEAR END MARCH 2013 FULL YEAR FORECAST 15
Slide 16: FY End March 2013 Financial Metrics
FY END MARCH 2013 FINANCIAL METRICS Full Year Change from FY March FY March Prior October (Billion yen) 2013 2012 Year Forecast Revenue 2,190.0 2,033.1 156.9 20.0 Operating profit 45.0 (38.7) 83.7 20.0 Ordinary profit 28.0 (36.8) 64.8 13.0 Profit before tax 33.0 (55.3) 88.3 16.0 Net income 26.0 (107
Slide 17: Global Sales Volume
GLOBAL SALES VOLUME Full Year Change from FY March FY March Prior October 2013 2012 Year Forecast Global sales volume (000) Japan 217 206 11 3 North America 380 372 8 (3) USA 280 268 12 0 Europe 177 183 (6) (5) China 170 223 (53) 0 Other Markets 306 263 43 0 Australia 104 92 12 0 ASEAN 106 66 40 0 T
Slide 18: Operating Profit Change
OPERATING PROFIT CHANGE FY End March 2013 Full Year vs. FY End March 2012 Full Year (Billion yen) FY March Effects of CX-5 Cost 2013 Improvement Marketing Other 50 and new Mazda6 + 36.7 + 8.9 45.0 Expense (8.0) 25 Exchange Vol. & Mix + 8.5 + 37.6 0 US Dollar +8.0 Improvement (25) Euro (4.5) (Deterio
Slide 19: Operating Profit Change vs. October Forecast
OPERATING PROFIT CHANGE FY End March 2013 Full Year vs. October Forecast Improvement (Billion yen) (Deterioration) February Cost Forecast Other Exchange Improvement Marketing 45.0 + 0.0 + 2.6 + 18.4 Expense 40 (1.0) October Forecast Vol. & Mix 25.0 + 0.0 US Dollar +4.7 Euro +5.0 20 Other +8.7 Change
Slide 20: Sales Initiatives in the Fourth Quarter (1)
SALES INITIATIVES IN THE FOURTH QUARTER (1) JAPAN • Sales enhancement of the New Atenza • Maintain the sales momentum of the CX-5 • Successful launch of the Premacy with SKYACTIV TECHNOLOGY North America • Successful launch of the facelifted CX-9 • Expand sales by adding 2.5L model of the CX-5 and s
Slide 21: Sales Initiatives in the Fourth Quarter (2)
SALES INITIATIVES IN THE FOURTH QUARTER (2) China • Implement sales promotion by actively utilizing regional motor shows, test-drive events, etc., and enhance advertising campaigns • Strengthen efforts to promote sales, focusing mainly on Mazda3 and Mazda6 Other Markets • Australia: Continue strong
Slide 22: Structural Reform Plan Update
STRUCTURAL REFORM PLAN UPDATE 22
Slide 23: Structural Reform Plan Update - Overview
STRUCTURAL REFORM PLAN UPDATE - OVERVIEW Progress Medium- and Long-term Outlook (FY March 2016) In FY March 2013, achieve positive profits in all profit Operating Profit ¥150 billion categories ROS 6% or more Off to a good start to achieve Global Sales Volume 1.7 million units Medium- and Long-term
Slide 24: Structural Reform Plan Update (1) Business Innovation by SKYACTIV
STRUCTURAL REFORM PLAN UPDATE (1) Business Innovation by SKYACTIV <CX-5> • Highly acclaimed globally, wining Japan Car Of The Year, becoming a big hit in global markets • The strong product marketability and fair price contributed to a reduction in incentive spending as well as improvements in resid
Slide 25: Structural Reform Plan Update (2) Further Cost Improvement through Monotsukuri Innovation
STRUCTURAL REFORM PLAN UPDATE (2) Further Cost Improvement through Monotsukuri Innovation Cost improvement of new generation products, starting with CX-5 and continuing with the new Mazda6, is proceeding according to the plan In addition to the improvement in product marketability, steadily maki
Slide 26: Structural Reform Plan Update (3) Promote Global Alliances
STRUCTURAL REFORM PLAN UPDATE (3) Reinforce Business in Emerging Countries and Establish Global Production Footprint ・ Started local production with Sollers in Russia (October 2012) ・ Restructured China business (Approved in November 2012) ・ Construction of our plant in Mexico is progressing smoothl
Slide 27: Summary
SUMMARY <Nine Month Results> Revenue was ¥1,535.2 billion. Operating profit was ¥19.6 billion. Net income was ¥25.6 billion. Strong selling CX-5 has largely contributed to the improvement <Full Year Forecast> Revised revenue and all profit categories upward Forecast revenue of ¥2,190 billion, operat
Slide 28: Profit Enhancement Due to Increasing Sales of SKYACTIV Products
PROFIT ENHANCEMENT DUE TO INCREASING SALES OF SKYACTIV PRODUCTS EVEN UNDER STRONG YEN ENVIRONMENT 324 25.4 247 255 244 Wholesales Volume (000) 9.7 8.1 1.8 Operating profit FY March 2013 (¥ billion) 1Q 2Q 3Q 4Q US$ / Yen 80 79 81 85 € / Yen 103 98 105 110 ・Achieved positive ・Turnaround to ・Introduced
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Slide 30: Appendix
APPENDIX 30
Slide 31: Topics After 1st Half Earnings: (1) Restructure of China Business
TOPICS AFTER EARNINGS ANNOUNCEMENT FOR THE 1ST HALF - (1) RESTRUCTURE OF CHINA BUSINESS Objective To meet needs of growing Chinese market and strengthen business through optimizing business structure and operational system Business Outline New company name: Changan Mazda Automobile Co., Ltd. (CMA) E
Slide 32: Topics After 1st Half Earnings: (2) Increase Capacity of New Plant in Mexico
TOPICS AFTER EARNINGS ANNOUNCEMENT FOR THE 1ST HALF - (2) INCREASE CAPACITY OF OUR NEW PLANT IN MEXICO <目的> Objective To strengthen our production capacity overseas; to meet the rapidly increasing demand for SKYACTIV models that are successful globally; in addition to production of a Toyota brand ve
Slide 33: Topics After 1st Half Earnings: (3) Cooperation with Fiat
TOPICS AFTER EARNINGS ANNOUNCEMENT FOR THE 1ST HALF - (3) COOPERATION WITH FIAT Objective Promote global alliances through business and technology tie-ups to strengthen the Mazda brand Merit Improve efficiency for development and production of open-top two-seater sports car Contribute to improving t
Slide 34: Topics After 1st Half Earnings: (4) New Transmission Plant in Thailand
TOPICS AFTER EARNINGS ANNOUNCEMENT FOR THE 1ST HALF - (4) NEW TRANSMISSION PLANT IN THAILAND Objective Establish stronger global production footprint to meet the rapidly increasing demand for SKYACTIV models Business Outline New company name: Mazda Powertrain Manufacturing (Thailand) Co., Ltd. (MPMT
Slide 35: FY End March 2013 Financial Metrics
FY END MARCH 2013 FINANCIAL METRICS FY March 2013 (Billion yen) 3rd Quarter 4th Quarter 2nd Half Full Year Revenue 511.7 654.8 1,166.5 2,190.0 Operating profit 8.1 25.4 33.5 45.0 Ordinary profit 21.0 6.6 27.6 28.0 Profit before tax 22.8 2.9 25.7 33.0 Net income 19.9 0.4 20.3 26.0 Operating ROS 1.6 %
Slide 36: Global Sales Volume
GLOBAL SALES VOLUME FY March 2013 3rd Quarter 4th Quarter 2nd Half Full Year Global sales volume (000) Japan 40 67 107 217 North America 88 110 198 380 USA 68 85 153 280 Europe 34 58 92 177 China 39 41 80 170 Other Markets 79 81 160 306 Australia 26 27 53 104 ASEAN 29 28 57 106 Total 280 357 637 1,2
Slide 37: Cash Flow and Net Debt
CASH FLOW AND NET DEBT FY March 2013 Change from Nine (Billion yen) 1st Half 3rd Quarter Months Prior FY End Cash Flow - From operating activities (11.7) (14.1) (25.8) - - From investing activities (7.9) (13.9) (21.8) - - Free Cash Flow (19.6) (28.0) (47.6) - Cash and Cash Equivalents 420.4 421.0 42
Slide 38: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA (Billion yen) 614.8 600 551.1 86.0 506.6 516.9 511.7 74.8 459.1 119.8 89.4 100.3 114.7 408.1 93.7 63.1 Other 69.1 67.8 70.8 69.9 84.2 Europe 63.8 144.8 185.8 300 152.2 141.3 143.5 144.9 North 94.3 America 237.7 223.1 Japan 180.9 182.6 197.2 204.5 167.9 0 1Q 2Q 3Q 4Q 1Q 2Q
Slide 39: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 614.8 600 551.1 59.3 506.6 516.9 511.7 56.5 50.7 459.1 55.0 48.7 48.5 52.4 408.1 54.8 47.6 45.2 46.5 Other 58.4 49.1 Parts 47.9 300 504.7 442.1 420.6 418.0 Vehicle/ 405.1 355.2 Parts for 301.8 overseas production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY End March 2012 FY End March
Slide 40: Revenue Change
REVENUE CHANGE FY End March 2013 Nine Months vs. FY End March 2012 Nine Months (Billion yen) FY March 2013 1,535.2 FY March 2012 1,418.3 Japan 1% Overseas 9% 10% 10% 8% 0% (2)% Total Vol. & Mix Exchange (10)% 40
Slide 41: Revenue Change
REVENUE CHANGE FY End March 2013 3rd Quarter vs. FY End March 2012 3rd Quarter (Billion yen) 20% FY March 2013 511.7 FY March 2012 459.1 Japan (1)% Overseas 8% 11% 10% 7% 4% 0% Total Vol. & Mix Exchange (10)% 41
Slide 42: Operating Profit Change
OPERATING PROFIT CHANGE FY End March 2013 3rd Quarter vs. FY End March 2012 3rd Quarter (Billion yen) FY March 2013 Other + 10.5 8.1 Marketing Cost Expense Improvement 0 + 1.0 + 10.1 Exchange + 9.5 Vol. & Mix (20) + 9.7 Improvement FY March (Deterioration) (40) 2012 (32.7) Change from prior year + 4
Slide 43: Consolidated Wholesales
CONSOLIDATED WHOLESALES Nine Months FY March 2013 Change from 1st Half 3rd Quarter Nine Months Prior year Consolidated wholesales (000) Japan 115 42 157 2 North America 175 86 261 17 Europe 68 38 106 (5) China 2 1 3 (6) Other Markets 142 77 219 37 Total 502 244 746 45 43
Slide 44: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Change from FY March 2013 Change from Prior Year Oct. FCST 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Full Year Global sales volume (000) Japan 110 107 217 15 (4) 11 3 North America 182 198 380 0 8 8 (3) Europe 85 92 177 (6) 0 (6) (5) Chin
Slide 45: Key Data
KEY DATA (Billion yen) 100 Full 91.7 92.0 87.0 Year Full 78.0 Year Full Nine 69.9 68.8 Year Months 65.1 61.0 53.2 51.6 Nine 50.2 Nine 50 Months Months 44.9 0 FYE 2012 2013 2012 2013 2012 2013 March Capital Depreciation R&D cost Spending 45
Slide 46: 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