Mazda Motor Corp. · TSE:7261
Mazda Motor — FY2004 Earnings Presentation
46 slides from Mazda Motor's earnings presentation, Apr 28, 2005
Slide 1: Mazda Motor Corporation FY2004 Results and FY2005 Projections
MAZDA MOTOR CORPORATION FY2004 RESULTS AND FY2005 PROJECTIONS April 28, 2005 1 FY2004 Results & FY2005 Projections
Slide 2: Outline
OUTLINE Overview FY2004 Results FY2005 Projections China Strategy Close 2 FY2004 Results & FY2005 Projections
Slide 3: Overview
OVERVIEW 3 FY2004 Results & FY2005 Projections
Slide 4: FY2004 Highlights
FY2004 HIGHLIGHTS All-time Record Operating Profit Reopened Ujina No.2 Plant ABC Cost Target Achieved Verisa and New Premacy Introductions Dividend Increase Planned 4 FY2004 Results & FY2005 Projections
Slide 5: FY2005 Outlook
FY2005 OUTLOOK Continue Progress and Foundation Building under Mazda Momentum New Mazda5, MX5/Roadster and Mazdaspeed6 Revenues Up 5% Escalating Raw Material Prices a Significant Challenge Operating Profit of 90 Billion Yen 5 FY2004 Results & FY2005 Projections
Slide 6: Mazda Momentum Key Measures
MAZDA MOMENTUM KEY MEASURES Strengthen Key Markets Reinforce Research & Development Enhance Global Efficiencies & Synergies Leverage Human Resources 6 FY2004 Results & FY2005 Projections
Slide 7: Strengthen Key Markets
STRENGTHEN KEY MARKETS Accelerate US Dealer Exclusivity Establish ASEAN Regional Office Open 20 Sales Outlets in Japan Expand Distribution Network in Russia 7 FY2004 Results & FY2005 Projections
Slide 8: Research & Development
RESEARCH & DEVELOPMENT Increased R&D Capacity - Manpower Increase of 15% Technology - Expansion of Zero Prototype Product Development Initiative Environment - Tribute HEV Development Commenced 8 FY2004 Results & FY2005 Projections
Slide 9: Global Efficiencies & Synergies
GLOBAL EFFICIENCIES & SYNERGIES Launch ABC Phase 2 Program Create and Implement Commodity Cycle Plans Greater Emphasis on Commonality Synergies with Ford a Key Element 9 FY2004 Results & FY2005 Projections
Slide 10: People/Management
PEOPLE/MANAGEMENT People Initiative - Recruit/Position Best Personnel - Develop/Utilize World-Class Personnel - Provide Best Support To Encourage Individual Creativity Strengthen Executive Officer System Increase Outside Corporate Auditors 10 FY2004 Results & FY2005 Projections
Slide 11: FY2004 Results
FY2004 RESULTS 11 FY2004 Results & FY2005 Projections
Slide 12: FY2004 Financial Metrics
FY2004 FINANCIAL METRICS (Billion yen) Change FY2004 FY2003 Amount Pct. Operating Profit 82.9 70.2 12.7 18 % Ordinary Profit 73.1 58.0 15.1 26 % Profit Before Tax 73.8 54.1 19.7 36 % Net Income 45.8 33.9 11.9 35 % Operating ROS 3.1% 2.4% 0.7 Pts - EPS (Yen/Share) 37.6 27.8 9.8 35 % 12 FY2004 Results
Slide 13: Cash Flow & Net Debt
CASH FLOW & NET DEBT (Billion yen) B/(W) Prior FY2004 FY2003 Year End Cash Flow - Operating 133.7 92.4 - - Investment (97.8) (43.3) - - Free Cash Flow 35.9 49.1 - Net Debt 313.5 358.1 44.6 Net Debt-to-Equity 117% 161% 44 Pts Capital Spending 67.9 45.6 - Dividend (Yen/Share) 3 2 1 13 FY2004 Results &
Slide 14: Key Data
KEY DATA FY2004 FY2003 Change WHOLESALES (000) Consolidated 1,104 1,076 * 3 % REVENUE (¥Bils.) 2,695.6 2,574.7 * 5 % EXCHANGE RATES Yen / U.S. Dollar 108 113 ¥ (5) Yen / Euro 135 133 ¥ 2 * Restated on a 12-month Basis 14 FY2004 Results & FY2005 Projections
Slide 15: Revenue Changes by Destination
REVENUE CHANGES BY DESTINATION FY2004 Compared With FY2003 10% Vol. & Mix 6 % Exchange (1)% 7% 5% 5% 0% 0% (Billion yen) Total Domestic Overseas FY04 2,695.6 845.6 1,850.0 FY03 2,574.7 846.2 1,728.5 15 FY2004 Results & FY2005 Projections
Slide 16: Ujina No.1 Plant Fire
UJINA NO.1 PLANT FIRE Facility Restored and Painting of Vehicles Restarted on April 27 Extraordinary Items Include Insurance Income as well as Loss on Facilities and Downtime Operating Profits Improved with Lower Cost and Favorable Exchange New Paint Facility Built for ¥10.7 bln 16 FY2004 Re
Slide 17: Japan
JAPAN FY2004 FY2003 Change Retail Volume (000) 286 279 2 % Market Share 4.9 % 4.7 % 0.2 Pts Introduction of Verisa and New Premacy 17 FY2004 Results & FY2005 Projections
Slide 18: United States
UNITED STATES FY2004 FY2003 Change Retail Volume (000) 264 273 (3) % Market Share 1.6 % 1.6 % 0.0 Pts Higher Car Sales Offset by Lower Truck Sales 18 FY2004 Results & FY2005 Projections
Slide 19: Europe
EUROPE FY2004 FY2003 Change Retail Volume (000) 273 250 9 % Market Share 1.5 % 1.4 % 0.1 Pts Continued Strong Momentum 19 FY2004 Results & FY2005 Projections
Slide 20: China
CHINA FY2004 FY2003 Change Retail Volume (000) 96 91 6 % Market Share 1.9 % 1.9 % 0.0 Pts Sales Growth Maintained 20 FY2004 Results & FY2005 Projections
Slide 21: Operating Profit Changes
OPERATING PROFIT CHANGES FY2004 Compared with FY2003 Billion yen 50 44.3 Wholesales Wholesales up up 3%. 3%. Strong Strong Growth Growth in in 30 Europe Europe 12.7 10.8 10 0.7 (10) (2.0) FY04 82.9 FY03 70.2 (12.4) (30) (28.7) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 21
Slide 22: Operating Profit Changes
OPERATING PROFIT CHANGES FY2004 Compared with FY2003 Billion yen 50 44.3 US$ US$ (6.1) (6.1) Euro Euro 3.9 3.9 30 Other Other 0.2 0.2 12.7 10.8 10 0.7 (10) (2.0) FY04 82.9 FY03 70.2 (12.4) (30) (28.7) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 22 FY2004 Results & FY2005 Pr
Slide 23: Operating Profit Changes
OPERATING PROFIT CHANGES FY2004 Compared with FY2003 Billion yen 50 44.3 Product Product Upgrades Upgrades ABC ABC Cost Cost incl. incl. Safety Safety & & Initiative Initiative 30 Emissions Emissions 12.7 10.8 10 0.7 (10) (2.0) FY04 82.9 FY03 70.2 (12.4) (30) (28.7) Total Vol & Mix Exch. Product CR
Slide 24: Operating Profit Changes
OPERATING PROFIT CHANGES FY2004 Compared with FY2003 Billion yen 50 44.3 Quality Quality Actions, Actions, R&D R&D Spend Spend and and 30 Other Other Costs Costs 12.7 10.8 10 0.7 (10) (2.0) FY04 82.9 FY03 70.2 (12.4) (30) (28.7) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 2
Slide 25: FY2005 Projections
FY2005 PROJECTIONS 25 FY2004 Results & FY2005 Projections
Slide 26: FY2005 Financial Metrics
FY2005 FINANCIAL METRICS (Billion yen) Change FY2005 FY2004 Amount Pct. Operating Profit 90.0 82.9 7.1 9 % Ordinary Profit 82.0 73.1 8.9 12 % Profit Before Tax 96.0 73.8 22.2 30 % Net Income 55.0 45.8 9.2 20 % Operating ROS 3.2% 3.1% 0.1 Pts - EPS (Yen/Share) 45.2 37.6 7.6 20 % 26 FY2004 Results & F
Slide 27: Key Assumptions
KEY ASSUMPTIONS FY2005 FY2004 Change WHOLESALES (000) Consolidated 1,178 1,104 7 % REVENUE (¥Bils.) 2,840.0 2,695.6 5 % EXCHANGE RATES Yen / U.S. Dollar 105 108 ¥ (3) Yen / Euro 135 135 ¥ 0 27 FY2004 Results & FY2005 Projections
Slide 28: Revenue Changes by Destination
REVENUE CHANGES BY DESTINATION FY2005 Compared With FY2004 10% Vol. & Mix 6 % Exchange (1)% 6% 5% 5% 5% 0% (Billion yen) Total Domestic Overseas FY05 2,840.0 900.0 1,940.0 FY04 2,695.6 845.6 1,850.0 28 FY2004 Results & FY2005 Projections
Slide 29: Japan
JAPAN FY2005 FY2004 Change Retail Volume (000) 293 286 2 % Market Share 5.0 % 4.9 % 0.1 Pts New Premacy and Roadster *US Spec 29 FY2004 Results & FY2005 Projections
Slide 30: United States
UNITED STATES FY2005 FY2004 Change Retail Volume (000) 268 264 2 % Market Share 1.6 % 1.6 % 0.0 Pts New Mazda5, Miata and Mazdaspeed6 30 FY2004 Results & FY2005 Projections
Slide 31: Europe
EUROPE FY2005 FY2004 Change Retail Volume (000) 300 273 10 % Market Share 1.7 % 1.5 % 0.2 Pts New Mazda5 and MX-5 31 FY2004 Results & FY2005 Projections
Slide 32: China
CHINA FY2005 FY2004 Change Retail Volume (000) 103 96 8 % Market Share 1.9 % 1.9 % 0.0 Pts Build Mazda Brand 32 FY2004 Results & FY2005 Projections
Slide 33: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 Compared with FY2004 Billion yen 27.8 30 27.0 Wholesales Wholesales 20 up up 7% 7% with with New New Products Products 10 7.1 0 (3.2) (10) (5.7) FY05 90.0 FY04 83.0 (11.4) (20) (30) (27.4) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 33 FY2004
Slide 34: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 Compared with FY2004 Billion yen 27.8 30 27.0 US$ US$ (4.6) (4.6) 20 Other Other 1.4 1.4 10 7.1 0 (3.2) (10) (5.7) FY05 90.0 FY04 83.0 (11.4) (20) (30) (27.4) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 34 FY2004 Results & FY2005 Projections
Slide 35: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 Compared with FY2004 Billion yen 27.8 30 27.0 Product Product Upgrades Upgrades Cost Cost Reductions Reductions 20 incl. incl. New New Features Features Net Net of of Raw Raw Material Material Price Price 10 7.1 Increases Increases 0 (3.2) (10) (5.7) FY05 90.0 FY04 83
Slide 36: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 Compared with FY2004 Billion yen 27.8 30 27.0 R&D R&D Spend, Spend, 20 Depreciation Depreciation and and Other Other Costs Costs 10 7.1 0 (3.2) (10) (5.7) FY05 90.0 FY04 83.0 (11.4) (20) (30) (27.4) Total Vol & Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs
Slide 37: China Strategy
CHINA STRATEGY 37 FY2004 Results & FY2005 Projections
Slide 38: Outline
OUTLINE Achieve 300,000 Units in the Year 2010 Launch Products Suitable for Chinese Market Expand Production System Establish Sales System Establish A Company to Manage China Operations 38 FY2004 Results & FY2005 Projections
Slide 39: Sales/Products
SALES/PRODUCTS (000 units) Mazda Brand Model 300 300 Retail Sales Volume 250 Launch 8 Models in the Next 3 Years 200 150 90 96 103 100 50 26 6 0 '01 '02 '03 '04 '05 '10 39 FY2004 Results & FY2005 Projections
Slide 40: Expand Production System
EXPAND PRODUCTION SYSTEM Vehicle (1) FAW Car Co. Ltd (Changchun) - Mazda6 (2) FAW Haima Motor Co. Ltd (Hainan) - 323/Premacy (3) Changan Ford (Nanjing) - Manufacture Small-sized Cars Using Mazda’s Latest Production Technology - To Start Operation in 07 Engine Changan Ford Mazda Engine Co Ltd (Na
Slide 41: Sales Structure & Management Company
SALES STRUCTURE & MANAGEMENT COMPANY FAW Mazda Motor Sales Co. Ltd - Joint-Venture Sales Company with First Auto Works/FAW Car Co. Ltd. - Started Operations in March 05 - To Sell All Mazda Vehicles to Be Produced in China New Company to Manage China Operations - 100% Mazda-owned Mazda Motor (Sha
Slide 42: Base Locations
BASE LOCATIONS Changan Automotive Group First Auto Works Group Business Management & Consulting Co. Ltd Changchun FAW Car Co. Ltd Beijing Changan Ford Mazda Office Engine Company Ltd. FAW Mazda Motor Sales Shanghai Co. Ltd Changan Ford (Nanjing) Nanjing Chongqing Changan Ford HQ Hainan FAW Haima (Ch
Slide 43: Close
CLOSE 43 FY2004 Results & FY2005 Projections
Slide 44: In Sum
IN SUM All-time Record Operating Profit in FY2004 ABC Cost Target Achieved Escalating Raw Material Prices a Significant Challenge Continue Progress and Foundation Building under Mazda Momentum in FY2005 44 FY2004 Results & FY2005 Projections
Slide 45: 45 FY2004 Results & FY2005 Projections
45 FY2004 Results & FY2005 Projections
Slide 46: Disclaimer
DISCLAIMER The projections for FY 2005 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 aw