Mazda Motor Corp. · TSE:7261

Mazda Motor — Q3 FY March 2019 Earnings Presentation

39 slides from Mazda Motor's earnings presentation, February 2019

  1. Slide 1: Fiscal Year March 2019 Third Quarter Financial Results

    FISCAL YEAR MARCH 2019 THIRD QUARTER FINANCIAL RESULTS

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2019 Nine Month Results  Fiscal Year March 2019 Full Year Forecast  Progress of Key Initiatives 1

  3. Slide 3: Highlights

    HIGHLIGHTS 【FY March 2019 Nine Month Results】  Global sales were 1.17 million units, down 1% year on year ⁃ Sales were down from the prior year due to substantial volume decline in China despite continued volume growth in Japan and ASEAN ⁃ Crossover models maintained strong sales momentum with laun

  4. Slide 4: Fiscal Year March 2019 Nine Month Results

    FISCAL YEAR MARCH 2019 NINE MONTH RESULTS 3

  5. Slide 5: FY March 2019 Global Sales Volume

    FY MARCH 2019 GLOBAL SALES VOLUME Nine Month FY March FY March Change from (000) 2018 2019 Prior Year Global sales volume Volume YOY(%) Japan 139 150 10 7% North America 321 320 (1) (0)% Europe 193 196 4 2% China 245 195 (50) (20)% Other Markets 288 309 21 7% Total 1,186 1,170 (16) (1)% <Breakdown>

  6. Slide 6: Japan

    JAPAN  Sales were 150,000 units, up 7% year on year  Market share was 4.0%. Registered vehicle market share was 5.1%, up 0.4 points year on year CX-5  Updated CX-5 and CX-8, which were launched in November, drove Nine Month Sales Volume sales increase (000) - Updated CX-5 became the first 7% 150

  7. Slide 7: North America

    NORTH AMERICA Mazda6  Sales were 320,000 units on par with the previous year  USA: 216,000 units, down 2% year on year - Sedan models continue to face a difficult sales environment with declining demand - Sales of crossover models were Nine Month Sales Volume strong, with updated CX-5 and (000) CX

  8. Slide 8: Europe

    EUROPE  Sales were 196,000 units, up 2% year on year  Sales of Mazda2 and CX-5 were strong, up 8% and 15％ year on year respectively Mazda2  Sales in Europe excluding Russia were 171,000 units, down 1% year on year Nine Month Sales Volume ⁃ Germany: 49,000 units, down (000) 2% year on year 196 193

  9. Slide 9: China

    CHINA  Sales were 195,000 units, down 20% year on year  Sales environment continued to deteriorate due to the economic CX-8 slowdown. Sales of key models including Mazda3 declined Nine Month Sales Volume  Continue initiatives to improve (000) 245 quality of sales (20)% 195 - Sales focused on comm

  10. Slide 10: Other Markets

    OTHER MARKETS  Sales were 309,000 units, up 7％ year on year  Australia: 82,000 units, down 5％ year on year - Maintained market share on par with the previous year despite CX-3 declining demand - While competition intensified, net revenue (transaction price) of Nine Month Sales Volume crossover mod

  11. Slide 11: FY March 2019 Financial Metrics

    FY MARCH 2019 FINANCIAL METRICS Nine Month FY March FY March Change from (Billion yen) 2018 2019 Prior Year Amount YOY(%) Revenue 2,547.9 2,622.6 74.7 3% Operating profit 107.1 59.6 (47.5) (44)% Ordinary profit 134.8 85.4 (49.4) (37)% Profit before tax 124.8 79.8 (45.0) (36)% Net income 84.9 37.0 (4

  12. Slide 12: FY March 2019 Operating Profit Change

    FY MARCH 2019 OPERATING PROFIT CHANGE FY March 2019 Nine Month vs. FY March 2018 Nine Month Impact of the record rains, Improvement (Billion yen) increased marketing expenses, reduced OEM (Deterioration) FY March supply and KD parts for 2018 China, etc. Includes hike in raw material Investment for U

  13. Slide 13: Fiscal Year March 2019 Full Year Forecast

    FISCAL YEAR MARCH 2019 FULL YEAR FORECAST 12

  14. Slide 14: FY March 2019 Global Sales Volume

    FY MARCH 2019 GLOBAL SALES VOLUME Full Year FY March FY March Change from (000) 2018 2019 Prior Year Oct. Forecast Volume YOY(%) Volume Global sales volume Japan 210 217 7 3% 1 North America 435 428 (7) (2)% (6) Europe 269 270 1 0% 0 China 322 250 (72) (22)% (44) Other Markets 394 405 11 3% 2 Total

  15. Slide 15: FY March 2019 Financial Metrics

    FY MARCH 2019 FINANCIAL METRICS Full Year FY March FY March Change from (Billion yen) 2018 2019 Prior Year Oct. Forecast Amount YOY(%) Amount Revenue 3,474.0 3,550.0 76.0 2% 20.0 Operating profit 146.4 80.0 (66.4) (45)% 10.0 Ordinary profit 172.1 110.0 (62.1) (36)% 10.0 Profit before tax 157.5 97.0

  16. Slide 16: FY March 2019 Operating Profit Change

    FY MARCH 2019 OPERATING PROFIT CHANGE FY March 2019 Full Year vs. October Forecast Improvement (Billion yen) (Deterioration) Advertising Increased wholesale expenses, etc. volume partially offset by 100 KD parts for China, etc. Hike in raw Feb. material prices Other Forecast Volume & Oct. Mix + 8.9

  17. Slide 17: FY March 2019 Operating Profit Change

    FY MARCH 2019 OPERATING PROFIT CHANGE FY March 2019 Full Year vs. FY March 2018 Full Year Improvement Impact of the record rains, (Billion yen) increased marketing expenses, (Deterioration) reduced OEM supply and KD FY March parts for China, etc. 2018 Investment in US sales network Volume & reforms,

  18. Slide 18: Progress of Key Initiatives (1)

    PROGRESS OF KEY INITIATIVES (1)  New-generation products Revealed all-new Mazda3 at the Los Angeles Auto Show - Sedan and hatchback have distinct personalities; both models were very well received - Offers driving pleasure with greatly enhanced quality in all the areas that matter to drivers - Wide

  19. Slide 19: Progress of Key Initiatives (2)

    PROGRESS OF KEY INITIATIVES (2)  US sales network transformation progressing well - About 250 dealers signed up to invest in becoming next- generation brand dealers; progress toward target of 300 dealers is better than expected - Operational quality is steadily improving • Retention improved, espec

  20. Slide 20: In Closing

    IN CLOSING 【Groundbreaking Ceremony on Nov. 16, 2018】  Key initiatives are on track; construction of the joint-venture plant in US is underway  2019 is the first year of a new generation. Following on from the launch of the all-new Mazda3, a new crossover will be revealed at the Geneva Auto Show a

  21. Slide 21: Mazda Motor Corporation

    MAZDA MOTOR CORPORATION 20

  22. Slide 22: Appendix

    APPENDIX MAZDA MOTOR CORPORATION 21

  23. Slide 23: Cash Flow and Net Cash

    CASH FLOW AND NET CASH FY March 2018 FY March 2019 Change from (Billion yen) Full Year Nine Month Prior FY End Cash Flow - From Operating activities 207.8 64.5 - - From Investing activities (160.0) (69.3) - - Free Cash Flow 47.8 (4.7) - Cash and Cash Equivalents 604.9 635.3 30.4 Net Cash 107.0 75.0

  24. Slide 24: Revenue by Geographic Area

    REVENUE BY GEOGRAPHIC AREA (Billion yen) 926.1 891.3 873.1 893.5 900 854.5 856.0 802.1 157.6 161.9 159.3 169.5 148.6 150.7 Other 136.4 183.1 177.0 179.3 156.6 175.6 178.2 600 Europe 155.8 265.8 274.8 285.5 300.5 262.3 272.7 North 288.3 America 300 319.6 Japan 254.2 264.7 256.7 267.4 273.1 221.6 0 1Q

  25. Slide 25: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 926.1 891.3 893.5 900 854.5 69.8 873.1 856.0 802.1 63.8 62.3 63.5 63.7 68.6 69.4 68.3 65.7 68.2 Other 58.2 67.5 67.7 Parts 61.7 600 Vehicles / 759.3 787.7 745.1 761.8 723.3 718.9 Parts for 682.2 300 Overseas Production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY March 2018 FY March 20

  26. Slide 26: Revenue Change: Nine Month vs. Nine Month

    REVENUE CHANGE FY March 2019 Nine Month vs. FY March 2018 Nine Month (Billion yen) FY March 2019 2,622.6 Domestic 2% FY March 2018 2,547.9 Overseas 1% 8% 4% 3% 3% (3)% (1)% Total Volume & Mix Exchange 25

  27. Slide 27: Revenue Change: Third Quarter vs. Third Quarter

    REVENUE CHANGE FY March 2019 Third Quarter vs. FY March 2018 Third Quarter (Billion yen) 10% FY March 2019 893.5 Domestic 2% FY March 2018 891.3 Overseas 1% 5% 3% 0% 0% (2)% (5)% Total Volume & Mix Exchange 26

  28. Slide 28: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Third Quarter FY March FY March Change from (000) 2018 2019 Prior Year Global sales volume Volume YOY(%) Japan 43 47 4 9% North America 103 98 (5) (5)% Europe 61 61 0 1% China 96 62 (34) (36)% Other Markets 101 107 6 5% Total 404 374 (29) (7)% Consolid

  29. Slide 29: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Nine Month FY March FY March Change from (000) 2018 2019 Prior Year Global sales volume Volume YOY(%) Japan 139 150 10 7% North America 321 320 (1) (0)% Europe 193 196 4 2% China 245 195 (50) (20)% Other Markets 288 309 21 7% Total 1,186 1,170 (16) (1)

  30. Slide 30: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from (000) 2018 2019 Prior Year Oct. Forecast Global sales volume Volume YOY(%) Volume Japan 210 217 7 3% 1 North America 435 428 (7) (2)% (6) Europe 269 270 1 0% 0 China 322 250 (72) (22)% (44) Other Markets 394 405

  31. Slide 31: Crossover Vehicle Ratio

    CROSSOVER VEHICLE RATIO （000 units） 1,500 Crossover vehicles 34% 39% 46% 12% 29% 27% 21% 1,000 Passenger 500 vehicles, and others - FY March 2012 2013 2014 2015 2016 2017 2018 2019 Global Sales 1,247 1,235 1,331 1,397 1,534 1,559 1,631 1,569 Volume （000 units） Results Plan 30

  32. Slide 32: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES FY March 2019 Change from Prior Year (000) 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Global sales volume Japan 103 114 217 6 0 7 North America 222 205 428 4 (11) (7) Europe 135 135 270 3 (2) 1 China 133 117 250 (16) (57) (72) Other Market

  33. Slide 33: FY March 2019 Financial Metrics

    FY MARCH 2019 FINANCIAL METRICS FY March 2019 Change from (Billion yen) 1st Half 2nd Half Full Year Prior Year Oct. Forecast Revenue 1,729.1 1,820.9 3,550.0 76.0 20.0 Operating profit 30.9 49.1 80.0 (66.4) 10.0 Ordinary profit 54.5 55.5 110.0 (62.1) 10.0 Profit before tax 50.0 47.0 97.0 (60.5) 10.0

  34. Slide 34: FY March 2019 Financial Metrics

    FY MARCH 2019 FINANCIAL METRICS Third Quarter FY March FY March Change from (Billion yen) 2018 2019 Prior Year Amount YOY(%) Revenue 891.3 893.5 2.2 0% Operating profit 30.6 28.7 (1.9) (6)% Ordinary profit 38.3 30.9 (7.4) (20)% Profit before tax 37.4 29.8 (7.6) (20)% Net income 21.6 12.6 (9.0) (41)%

  35. Slide 35: FY March 2019 Operating Profit Change

    FY MARCH 2019 OPERATING PROFIT CHANGE FY March 2019 Third Quarter vs. FY March 2018 Third Quarter Improvement (Billion yen) Increased marketing (Deterioration) expenses, reduced KD parts for China, etc. Improved advertising expenses and quality- related costs etc. FY March 【Exchange】 2018 USD 0.4 EU

  36. Slide 36: Key Data

    KEY DATA (Billion Yen) 138.0 150 Full 136.0 Year 120.0 Full 104.1 Year 90.0 100 Full 87.0 Year 97.2 98.7 Nine Month Nine 66.4 66.2 Nine 66.7 64.8 50 Month Month 0 FY March 2018 2019 2018 2019 2018 2019 Capital Depreciation R&D Cost Expenditure Cost 35

  37. Slide 37: Exchange Rates

    EXCHANGE RATES Full Year FY March FY March Change from (Yen) 2018 2019 Prior Year US Dollar 111 111 0 Euro 130 128 (1) Canadian Dollar 86 84 (2) Australian Dollar 86 81 (5) British Pound 147 145 (2) 36

  38. Slide 38: Dividend Payment

    DIVIDEND PAYMENT Trend of dividends per share Interim dividends 35 35 35 Year-end dividends 30 20 20 20 15 (forecast） （見通し） 10 15 15 15 15 1 10 FY March 2014 FY March 2015 FY March 2016 FY March 2017 FY March 2018 FY March 2019 Results Plan Note) A share consolidation was implemented on common stock

  39. Slide 39: 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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