Slide 1: FY2007 Results and FY2008 Projections
FY2007 RESULTS AND FY2008 PROJECTIONS Mazda Motor Corporation April 25, 2008 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Overview FY2007 Results FY2008 Projections In Summary 2
Slide 3: Overview
OVERVIEW 3
Slide 4: FY2007 Highlights
FY2007 HIGHLIGHTS Business Highlights - Introduced new Demio/Mazda2 in Japan, Europe, China and other markets, and new Atenza/Mazda6 in Japan, Europe and other markets. The models received high acclaim - Completed capacity expansion at domestic plants - Started production of new Mazda2 at the vehicl
Slide 5: FY2008 Highlights
FY2008 HIGHLIGHTS Business Environment - Reassessed exchange rate assumptions reflecting stronger yen mainly against substantially weaker US dollar - Further raw material price hikes - Deterioration of sales environments in mature markets such as North America Financial Projections - Accelerate cost
Slide 6: FY2007 Results
FY2007 RESULTS 6
Slide 7: FY2007 Financial Metrics
FY2007 FINANCIAL METRICS (Billion yen) Full Year Change FY2007 FY2006 Amount Pct. Revenues 3,475.8 3,247.5 228.3 7 % Operating Profit 162.1 158.5 3.6 2 % Ordinary Profit 148.5 127.8 20.7 16 % Profit Before Tax 143.1 118.5 24.6 21 % Net Income 91.8 73.7 18.1 25 % Operating ROS 4.7 % 4.9 % (0.2) Pts -
Slide 8: Cash Flow & Net Debt
CASH FLOW & NET DEBT B/(W) Prior (Billion yen) FY2007 FY2006 Year End Cash Flow - Operating C/F 103.0 116.4 - - Investment C/F (92.8) (95.4) - - Free C/F 10.2 21.0 - Net Debt 281.1 232.2 (48.9) Net Debt-to-Equity 51 % 49 % (2) Pts Dividend (Yen/Share) 6 6 - 8
Slide 9: Key Data
KEY DATA (Billion yen) New product launches and personnel increase 120 114.4 Investment for 107.6 domestic plant 100 capacity increase, engine capacity Full 79.6 increase and new 75.5 products 80 Year 66.5 60 47.0 40 57.5 20 50.5 First 32.4 35.3 22.3 32.7 Half 0 FY06 FY07 FY06 FY07 FY06 FY07 Capital
Slide 10: Key Data
KEY DATA Full Year FY2007 FY2006 Change Global Retail Volume (000) 1,363 1,302 5 % Excl. Volum e Produced in Hainan 1,363 1,226 11 % Exchange Rates Yen / U.S. Dollar 114 117 ¥ (3) Yen / Euro 162 150 ¥ 12 10
Slide 11: Domestic & Overseas Revenue Changes
DOMESTIC & OVERSEAS REVENUE CHANGES FY2007 Full Year Compared With FY2006 Full Year 10% 10% Vol. & Mix 4% 7% Exchange 3% -2% (1%) Total Domestic Overseas (Billion yen) FY07 3,475.8 880.1 2,595.7 FY06 3,247.5 887.3 2,360.2 11
Slide 12: Japan
JAPAN (000 units) 300 256 261 (2%) 250 200 New Demio received high 150 acclaim and added volume as planned New Atenza off to a strong start 100 Share was up 0.2 percentage points FY2006 FY2007 12
Slide 13: North America
NORTH AMERICA (000 units) 450 406 7% 400 380 Canada, 350 Canada, other other 111* 300 99* 12% 250 USA Inventory adjustment 200 USA completed 295 281 Mazda3 and highly- 150 5% acclaimed CX-9 contributed to growth 100 US sales environment is FY2006 FY2007 becoming more challenging * Including Mexico a
Slide 14: Europe
EUROPE (000 units) 327 350 7% 304 300 250 200 Russia – No.2 volume market 150 New Mazda2 received high acclaim and added volume as planned 100 Sales in Germany down due to lower industry FY2006 FY2007 New Mazda6 off to a good start 14
Slide 15: China
CHINA (000 units) 150 129 101 Hainan 91% 100 volume 76 50 Up 91% excluding volume produced in Hainan 53 Sales of Mazda6, after the launch 5 years ago, continued strong Production of new Mazda2 started 0 at the plant in Nanjing FY2006 FY2007 Improved sales network and 175 outlets in operation as of M
Slide 16: Other Markets
OTHER MARKETS (000 units) 300 273 20% CX-7写真 250 228 200 Sales in Australia up 18%. Share expanded 150 Best-selling brand in Israel Record high sales in 7 countries including Venezuela 100 Sales of CX-7 continued FY2006 FY2007 strong 16
Slide 17: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 Full Year Compared With FY2006 Full Year (Billion yen) 200 CR Improvement Exchange 15.8 23.4 (Deterioration) 190 (4.2) Marketing 180 Expense FY2006 Vol & Mix (13.3) 170 FY2007 8.0 Product 158.5 Enhancement 162.1 160 (26.1) Other Costs 150 + 3.6 from FY2006 140 17
Slide 18: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 Full Year Compared With FY2006 Full Year (Billion yen) 200 CR US dollar (7.4) Improvement Euro 14.0 Exchange 15.8 Other 16.8 23.4 (Deterioration) 190 (4.2) Marketing 180 Expense FY2006 Vol & Mix (13.3) 170 FY2007 8.0 Product 158.5 [Factors for Increase] Enhancement 16
Slide 19: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 Full Year Compared With FY2006 Full Year (Billion yen) 200 Product upgrades (10.3) CR Regulations Exchange (3.0) Improvement 15.8 23.4 (Deterioration) 190 (4.2) Marketing 180 Expense FY2006 Vol & Mix (13.3) 170 FY2007 8.0 Product 158.5 Enhancement 162.1 160 Includes i
Slide 20: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 Full Year Compared With FY2006 Full Year (Billion yen) New product launch cost mainly in Europe 200 CR Improvement Exchange 15.8 23.4 (Deterioration) 190 (4.2) Marketing 180 Expense FY2006 Vol & Mix (13.3) 170 FY2007 8.0 Product 158.5 162.1 Enhancement 160 (26.1) Othe
Slide 21: FY2008 Projections
FY2008 PROJECTIONS 21
Slide 22: FY2008 Financial Metrics
FY2008 FINANCIAL METRICS (Billion yen) Full Year Change FY2008 FY2007 Amount Pct. Revenues 3,000.0 3,475.8 (475.8) (14) % Operating Profit 115.0 162.1 (47.1) (29) % Ordinary Profit 110.0 148.5 (38.5) (26) % Profit Before Tax 100.0 143.1 (43.1) (30) % Net Income 70.0 91.8 (21.8) (24) % Operating ROS
Slide 23: Key Data
KEY DATA Reinforced development of (Billion yen) next-generation products and technologies 120 114.4 115.0 Investment for new 100 products and R&D test 85.0 facility 80 75.5 73.0 66.5 60 40 20 0 FY07 FY08 FY07 FY08 FY07 FY08 Capital Spending Depreciation R&D Cost 23
Slide 24: Key Data
KEY DATA Full Year FY2008 FY2007 Change Global Retail Volume (000) 1,480 1,363 9 % Exchange Rates Yen / U.S. Dollar 100 114 ¥ (14) Yen / Euro 150 162 ¥ (12) 24
Slide 25: Japan
JAPAN (000 units) 300 257 256 0% 250 200 Additional volume from new Atenza 150 Introduce new Japan exclusive model 100 FY2007 FY2008 25
Slide 26: North America
NORTH AMERICA (000 units) 450 400 406 (1%) 400 Canada, Canada, 350 other other 111* 110* 300 (1)% 250 Launch new Mazda6, unique USA U.S model to North America 200 USA 290 296 Improve brand value by 295 (2%) reducing fleet sales in the US 150 100 FY2007 FY2008 * Including Mexico and Puerto Rico 26
Slide 27: Europe
EUROPE (000 units) 400 360 10% 350 327 300 250 Record high volume with launch of Mazda2 3-door and 200 diesel models, and sales of full line-up of Mazda6 Russia will be the top-selling 150 country 100 FY2007 FY2008 27
Slide 28: China
CHINA (000 units) 200 180 78% 150 101 100 Sales will double with full 50 key model line-up Full start of sales through 2 channels 0 Reinforce brand image with RX-8 and MX-5 FY2007 FY2008 28
Slide 29: Other Markets
OTHER MARKETS (000 units) 283 300 3% 273 250 200 Plan to achieve sales up 4% in Australia 150 Volume down in Venezuela due to import regulations BT-50 is selling well 100 FY2007 FY2008 29
Slide 30: Operating Profit Changes
OPERATING PROFIT CHANGES FY2008 Full Year Compared With FY2007 Full Year (Billion yen) Vol. & Mix Improvement 46.0 Exchange (Deterioration) 200 FY2007 162.1 160 FY2008 115.0 Product Enhancement Marketing CR Expense Other (78.0) 9.0 120 Cost (5.0) (0.1) (19.0) Down 47.1 from FY2007 80 30
Slide 31: Operating Profit Changes
OPERATING PROFIT CHANGES FY2008 Full Year Compared With FY2007 Full Year (Billion yen) [Factors for Increase] Vol. & Mix -Higher sales in key markets 46.0 Exchange -Mix improvements with new model introductions 200 FY2007 162.1 US Dollar (43.7) Euro (15.5) Other (18.8) FY2008 160 115.0 Product Enhan
Slide 32: Operating Profit Changes
OPERATING PROFIT CHANGES FY2008 Full Year Compared With FY2007 Full Year (Billion yen) Product Enhancement (18.5) Regulations (0.5) Improvement Vol. & Mix 46.0 Exchange (Deterioration) [Factors for Increase] 200 -Promotion of cost innovation FY2007 initiatives 162.1 [Factors for Decrease] -More raw
Slide 33: Operating Profit Changes
OPERATING PROFIT CHANGES FY2008 Full Year Compared With FY2007 Full Year (Billion yen) Vol. & Mix Improvement 46.0 Exchange (Deterioration) 200 FY2007 162.1 Brand improvement 160 FY2008 115.0 Product Enhancement Marketing CR Expense Other (78.0) 9.0 120 Cost (5.0) (0.1) (19.0) 80 33
Slide 34: In Summary
IN SUMMARY 34
Slide 35: In Summary (1)
IN SUMMARY (1) (000 units) Global Retail Volume Trend 1,700 1,600 1,480 1,500 1,363 1,302 1,300 1,163 1,204 1,100 906 900 700 500 FY01 FY03 FY04 FY06 FY07 FY08 FY10 Mazda Mazda Millennium Momentum Advancement 35
Slide 36: In Summary (2)
IN SUMMARY (2) FY2007 - Achieved sales and profit growth for 7 consecutive years, record high profits and profits exceeded our original plans at all levels - Successfully introduced two key models - Continued preparation for the future • FY2008 - Accelerate cost innovation initiatives and promote br
Slide 37: (4)
37 (4)
Slide 38: Appendix
APPENDIX 38
Slide 39: FY2007 Fourth Quarter Financial Metrics
FY2007 FOURTH QUARTER FINANCIAL METRICS (Billion yen) 4th Quarter Change FY2007 FY2006 Amount Pct. Revenues 969.5 957.9 11.6 1 % Operating Profit 53.7 51.2 2.5 5 % Ordinary Profit 58.8 43.9 14.9 34 % Profit Before Tax 56.8 41.8 15.0 36 % Net Income 46.8 31.6 15.2 48 % Operating ROS 5.5 % 5.3 % 0.2 P
Slide 40: Key Data
KEY DATA 4th Quarter FY2007 FY2006 Change Global Retail Volume (000) 388 360 8 % Excl. Volum e Produced in Hainan 388 346 12 % Exchange Rates Yen / U.S. Dollar 105 119 ¥ (14) Yen / Euro 158 156 ¥ 2 40
Slide 41: Key Data
KEY DATA 4th Quarter FY2007 FY2006 Change Consol. Wholesales (000) Japan 80 77 3 North America* 106 125 (19) Europe 105 83 22 China 7 1 6 Other Markets 66 63 3 Total 364 348 16 Global Retail Volume (000) Japan 81 79 2 North America* 104 102 2 Europe 99 83 16 China 30 31 (1) Other Markets 74 65 9 Tot
Slide 42: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 4th Quarter Compared With FY2006 4th Quarter (Billion yen) 60 Vol. & Mix Exchange 7.0 FY2008 Other 53.7 Marketing Expense Costs FY2007 0.1 2.0 CR 51.2 Product 6.6 Enhancement 50 (7.8) (5.4) Improvement + 2.5 from FY2006 4th Quarter (Deterioration) 40 42
Slide 43: Revenue by Region and by Segment
REVENUE BY REGION AND BY SEGMENT FY2007 Full Year Compared With FY2006 Full Year By Region By Segment 3,247.5 3,475.8 3,247.5 3,475.8 (Billion yen) 7% 7% 33% 339.4 Other 0% 502.4 254.5 Other 3,000 501.4 11% 286.4 13% Europe Parts 872.6 774.8 257.9 2,000 (2)% North 991.2 974.5 America 8% Vehicle/ 2,4
Slide 44: Key Data
KEY DATA Full Year FY2008 FY2007 Change Consol. Wholesales (000) Japan 260 257 3 North America* 393 386 7 Europe 350 323 27 China 29 9 20 Other Markets 258 265 (7) Total 1,290 1,240 50 Global Retail Volume (000) Japan 257 256 1 North America* 400 406 (6) Europe 360 327 33 China 180 101 79 Other Mark
Slide 45: Key Data
KEY DATA FY2008 (Billion yen) 1st Half 2nd Half Full Year Revenues 1,450.0 1,550.0 3,000.0 Operating Profit 50.0 65.0 115.0 Ordinary Profit 50.0 60.0 110.0 Profit Before Tax 45.0 55.0 100.0 Net Income 32.0 38.0 70.0 Operating ROS 3.4 % 4.2 % 3.8 % EPS(Yen/Share） 22.7 27.0 49.7 45
Slide 46: Key Data
KEY DATA FY2008 1st Half 2nd Half Full Year Global Retail Volume (000) Japan 124 133 257 North America 197 203 400 Europe 179 181 360 China 85 95 180 Other Markets 145 138 283 Total 730 750 1,480 Exchange Rates Yen / U.S. Dollar 100 100 100 Yen / Euro 150 150 150 46
Slide 47: Key Data
KEY DATA FY2008 1st Half 2nd Half Full Year Consol. Wholesales (000) Japan 126 134 260 North America 182 211 393 Europe 161 189 350 China 15 14 29 Other Markets 132 126 258 Total 616 674 1,290 47
Slide 48: 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