Mazda Motor Corp. · TSE:7261
Mazda Motor — FY March 2012 Earnings Presentation
32 slides from Mazda Motor's earnings presentation, Jun 17, 2011
Slide 1: FY Ending March 2012 Financial Forecast
FY ENDING MARCH 2012 FINANCIAL FORECAST New MAZDA Demio 13-SKYACTIV Mazda Motor Corporation June 17, 2011 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE FY ending March 2012 Forecast Updates of Framework for Medium- and Long-term Initiatives Manufacturing Business in Mexico and Sales Business in Brazil 2
Slide 3: Fiscal Year Ending March 2012 Forecast
FISCAL YEAR ENDING MARCH 2012 FORECAST 3
Slide 4: FY Ending March 2012 Highlights
FY ENDING MARCH 2012 HIGHLIGHTS Revenue is projected at ¥2.19 trillion, operating profit at ¥20 billion and net income at ¥1 billion Project to be profitable in all profit categories, by offsetting stronger yen impact and raw material price hikes, while accelerating investment for the future Global
Slide 5: FY Ending March 2012 Financial Metrics
FY ENDING MARCH 2012 FINANCIAL METRICS FY March FY Ending March 2012 2011 Full Year (Billion yen) 1st half 2nd half Full year Full year Change Revenue 960.0 1,230.0 2,190.0 2,325.7 (135.7) Operating profit (20.0) 40.0 20.0 23.8 (3.8) Ordinary profit (25.0) 40.0 15.0 36.9 (21.9) Profit before tax (30
Slide 6: Key Data
KEY DATA (Billion yen) 100 95.0 91.0 80.0 71.6 70.0 50 44.7 0 （FYE March） 2011 2012 2011 2012 2011 2012 Capital Spending Depreciation R&D cost 6
Slide 7: Key Data
KEY DATA Full Year (000) FY March FY March Change 2012 2011 Vol. % Global sales volume Japan 207 206 1 0 North America 346 342 4 1 USA 240 238 2 1 Europe 202 212 (10) (5) China 270 236 34 14 Other 280 277 3 1 Total 1,305 1,273 32 3 Exchange rates US$ / Yen 83 86 (3) € / Yen 113 113 0 7
Slide 8: Market Summary
MARKET SUMMARY Enhance global marketing measures, centering around the introductions of models equipped with SKYACTIV TECHNOLOGY in FY ending March 2012 Maintain our policy to improve brand value globally, and continue residual value improvement Details in each market: Japan: Starting with the new D
Slide 9: Operating Profit Change
OPERATING PROFIT CHANGE FY Ending March 2012 Compared with (Billion yen) FY Ended March 2011 Improvement Change from prior year (3.8) (Deterioration) FY Ended March 2011 23.8 Vol. & Mix FY Ending March 2012 Cost Other Improvement Marketing 6.4 20.0 20 Expense 12.6 (5.0) Exchange (14.2) US dollar (4.
Slide 10: Operating Profit Change
OPERATING PROFIT CHANGE FY Ending March 2012 Compared with (Billion yen) FY Ended March 2011 Improvement Change from prior year (3.8) (Deterioration) FY Ended March 2011 Net improvement, 23.8 offsetting raw Vol. & Mix material price hikes FY Ending March 2012 Cost Other Improvement Marketing 6.4 20.
Slide 11: Production Plan (1)
PRODUCTION PLAN (1) Domestic production ・Production volume in FY ending March 2012 is projected at 900,000 units (up 4% from the prior year) ・Recovered to the normal production earlier than we originally planned in the latter half of the 1st quarter Overseas production ・Overseas plants (AAI, AAT, CF
Slide 12: Production Plan (2)
PRODUCTION PLAN (2) FY FY March March 2012: 2012: Domestic Domestic Production Production Volume Volume Plant Utilization Ratio 101% 87% 88% 71% +50% Year-over-year change +3% -8% -20% (FY March) 2011 2012 2011 2012 2011 2012 2011 2012 1Q 2Q 3Q 4Q 12
Slide 13: Updates of Framework for Medium- and Long-term Initiatives - 5 Pillars
UPDATES OF FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES - 5 Pillars - 1. Brand Value 2. Monotsukuri Innovation 3. Environmental and Safety Technologies 4. Emerging Markets 5. Ford Synergies 13
Slide 14: Changes in Environment
UPDATES OF FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (1) – CHANGES IN ENVIRONMENT Changes in environment after the announcement - Further and continued appreciation of yen against US dollar and Euro - Steel and other raw material price hikes - Fiercer sales environment (Rise of Korean and Germ
Slide 15: Initiatives (2) - Brand
UPDATES OF FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (2) – BRAND Results - Improvement of brand value in major markets steadily progressed (1) Maintained top class residual value in major markets (2) Improved customer satisfaction scores such as significant improvement in US SSI* ranking (3) I
Slide 16: Initiatives (3) - Monotsukuri Innovation
UPDATES OF FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (3) – MONOTSUKURI INNOVATION Results - Results achieved by Integrated Planning and Flexible Production system R&D efficiency: Improved 30% or more Cost: Improved 20% level Facility investment efficiency: Improved 20% to 60% - Prospect found
Slide 17: Initiatives (4) - Environmental and Safety Technologies
UPDATES OF FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (4) – ENVIRONMENTAL AND SAFETY TECHNOLOGIES Results - Progress as planned toward the target to improve average fuel economy by 30% globally by 2015 (compared with 2008) (1) Achieved 30 km/liter with the new Demio for Japan without assistance
Slide 18: Initiatives (5) - Emerging Markets Results
UPDATES OF FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (5) – EMERGING MARKETS Results - Consolidated Mazda3 production in Nanjing, China to enhance production capacity and to increase sales of the Mazda3 - Started local assembly of Mazda2 Sedan and Mazda3 at AAT’s new passenger car plant. Streng
Slide 19: Initiatives (5) - Emerging Markets Future Actions
UPDATES OF FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (5) – EMERGING MARKETS Future actions - Promote growth strategy in emerging markets (ASEAN & China) - Expand local production (1) ASEAN ・ Accelerate local production in ASEAN led by AAT and intra-region export ・ Expand sales network in growi
Slide 20: Initiatives (6) - Ford Synergies
UPDATES OF FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES (6) – FORD SYNERGIES Results - Jointly developing next BT-50. Sales will start in FY ending March 2012 Future Actions - Maintain strategic partnership 20
Slide 21: Initiatives - Summary
UPDATES OF FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES – SUMMARY Although there are some negative impact such as uncertain industry demand in developed countries, raw material price hikes and continued stronger yen, we; - Improve mix and reinforce sales with introductions of new generation produ
Slide 22: Initiatives - Image of Profit Growth
UPDATES OF FRAMEWORK FOR MEDIUM- AND LONG-TERM INITIATIVES – IMAGE OF PROFIT GROWTH Growth driver Operating Operating profit profit ¥¥ 170 170 billion billion (1) (1) Substantial Substantial improvements improvements inin volume volume && mix mix by by introduction introduction of of SKYACTIV SKYACT
Slide 23: Manufacturing Business in Mexico and Sales Business in Brazil
MANUFACTURING BUSINESS IN MEXICO AND SALES BUSINESS IN BRAZIL 23
Slide 24: Emerging Markets - Central and South America
1. EMERGING MARKETS - CENTRAL AND SOUTH AMERICA Framework for Medium- and Long-term Initiatives Enter and enhance growing markets, secure competitive cost, and strengthen Central and South American business as the 3rd pillar of our emerging market business strategy following China and ASEAN • Build
Slide 25: Manufacturing Business in Mexico
2. MANUFACTURING BUSINESS IN MEXICO <Outline> Establish a joint venture vehicle assembly plant and engine assembly plant together with Sumitomo Corporation in Mexico Manufacturing Business Operation launch: FY2013 Capacity: 140,000 units a year Models: Mazda2, Mazda3 Destination markets: Mainly Cent
Slide 26: Sales Business in Brazil
3. SALES BUSINESS IN BRAZIL <Outline> Set up a joint venture distributor with Sumitomo Corporation in Brazil Sales Business Start sales: FY2012 Vehicle supply: Introduce vehicles produced in Japan in FY2012. Once the plant in Mexico is completed, vehicles will also be shipped from the plant Headquar
Slide 27: Locations
4. LOCATIONS Guanajuato State Salamanca City (Planned plant construction site) Mexico City Brazil We pursue not only growth in Mexico, but also entry into Brazilian market by taking advantage of Agreement of Economic Complementation and growth in other Central and South American markets. Given suppl
Slide 28: Benefits from Entry into Central and South America
5. BENEFITS FROM ENTRY INTO CENTRAL AND SOUTH AMERICA Production in Mexico will allow us to ・Do business in rapidly growing Brazil, benefiting from Agreement of Economic Complementation ・Maximize FTA effects in selling vehicles for Central and South America Further growth in well performing Mexico C
Slide 29: Market Overview - Mexico
6. MARKET OVERVIEW - MEXICO Results Forecast 000 units Others 7.0% 1,200 C car B car 6.0% Mazda Share 1,000 5.0% 800 4.0% 3.1% 600 2.5% 3.0% 400 2.0% 2.1% 200 0.7% 1.5% 1.0% 0.1% 0 0.0% CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 Source： IHS Automotive 2011 2Q Forecast and
Slide 30: Market Overview - Brazil
7. MARKET OVERVIEW - BRAZIL Results Forecast 000 units 5,000 Others C car B car 4,000 C 3,000 2,000 B 1,000 0 CY04 CY05 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 Source： IHS Automotive 2011 2Q Forecast The market grew the 4th largest in the world (in 2010). Further growth is expect
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Slide 32: 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