Slide 1: Mazda Motor Corporation FY2005 Results and FY2006 Projections
MAZDA MOTOR CORPORATION FY2005 RESULTS AND FY2006 PROJECTIONS April 28, 2006 1 FY2005 Results & FY2006 Projections
Slide 2: Outline
OUTLINE Overview FY2005 Results FY2006 Projections Close 2 FY2005 Results & FY2006 Projections
Slide 3: Overview
OVERVIEW 3 FY2005 Results & FY2006 Projections
Slide 4: FY2005 Highlights
FY2005 HIGHLIGHTS Record Operating Profit, up 49% to ¥123.4 billion Wholesales up 4% and Revenues up 8% Introduction of New Mazda5, MX-5/ Roadster, MPV and New Pick-up BT-50 Dividend Increase by ¥2 to ¥5 a Share 4 FY2005 Results & FY2006 Projections
Slide 5: FY2006 Outlook
FY2006 OUTLOOK Continue Progress and Foundation Building under Mazda Momentum Introduction of New CX-7, CX-9, Tribute, Mazdaspeed3 and Freshened Mazda3/Axela Wholesales Up 5% and Revenues Up 6% Operating Profit of ¥135 Billion 5 FY2005 Results & FY2006 Projections
Slide 6: Mazda Momentum Key Measures
MAZDA MOMENTUM KEY MEASURES Strengthen Key Markets Reinforce Research & Development Enhance Global Efficiencies and Synergies Leverage Human Resources 6 FY2005 Results & FY2006 Projections
Slide 7: Mazda Momentum FY2006 Objectives
MAZDA MOMENTUM FY2006 OBJECTIVES Projection Objective Change Operating Profit - Billion Yen 135.0 100.0 35% Net Debt/Equity Ratio - Percent < 60% < 100% 40 pts Wholesales - Consolidated (000) 1,210 1,250 (3)% 7 FY2005 Results & FY2006 Projections
Slide 8: FY2005 Results
FY2005 RESULTS 8 FY2005 Results & FY2006 Projections
Slide 9: FY2005 Financial Metrics
FY2005 FINANCIAL METRICS (Billion yen) Change FY2005 FY2004 Amount Pct. Operating Profit 123.4 82.9 40.5 49 % Ordinary Profit 101.5 73.1 28.4 39 % Profit Before Tax 117.5 73.8 43.7 59 % Net Income 66.7 45.8 20.9 46 % Operating ROS 4.2% 3.1% 1.1 Pts - EPS (Yen/Share) 51.5 37.6 13.9 37 % 9 FY2005 Resu
Slide 10: Cash Flow & Net Debt
CASH FLOW & NET DEBT (Billion yen) B/(W) Prior FY2005 FY2004 Year End Free Cash Flow 33.6 35.9 - Net Debt 246.8 313.5 66.7 Net Debt-to-Equity 62% 117% 55 Pts Capital Spending 72.1 67.9 - Dividend (Yen/Share) 5 3 2 10 FY2005 Results & FY2006 Projections
Slide 11: Key Data
KEY DATA FY2005 FY2004 Change WHOLESALES (000) Consolidated 1,149 1,104 4 % REVENUE (¥Bils.) 2,919.8 2,695.6 8 % EXCHANGE RATES Yen / U.S. Dollar 113 108 ¥ 5 Yen / Euro 138 135 ¥ 3 11 FY2005 Results & FY2006 Projections
Slide 12: Revenue Changes by Destination
REVENUE CHANGES BY DESTINATION FY2005 Compared With FY2004 Vol. & Mix 5 % 10% 10% Exchange 3 % 8% 5% 5% 0% (Billion yen) Total Domestic Overseas FY05 2,919.8 887.7 2,032.1 FY04 2,695.6 845.6 1,850.0 12 FY2005 Results & FY2006 Projections
Slide 13: Japan
JAPAN FY2005 FY2004 Change Retail Volume (000) 287 286 0 % Market Share 4.9 % 4.9 % 0.0 Pts New Premacy, Roadster and MPV 13 FY2005 Results & FY2006 Projections
Slide 14: United States
UNITED STATES FY2005 FY2004 Change Retail Volume (000) 262 264 (1) % Market Share 1.5 % 1.6 % (0.1) Pts Higher Car Sales Offset by Lower Truck Sales 14 FY2005 Results & FY2006 Projections
Slide 15: Europe
EUROPE FY2005 FY2004 Change Retail Volume (000) 282 273 3 % Market Share 1.5 % 1.5 % 0.0 Pts Sales Momentum Continues 15 FY2005 Results & FY2006 Projections
Slide 16: China
CHINA FY2005 FY2004 Change Retail Volume (000) 130 96 36 % Market Share 2.1 % 1.8 % 0.3 Pts Strong Sales Growth Continues 16 FY2005 Results & FY2006 Projections
Slide 17: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 Compared with FY2004 Billion yen Wholesales Wholesales up up 4% 4% 50 Revenue 40.5 Revenue up up 8% 8% 30.9 30 22.0 19.1 10 1.7 (10) FY05 123.4 (5.0) FY04 82.9 (30) (28.2) Total Oper. Vol & Mix Exch. Product CR Mktg. Exp. Other Enhanc. Costs 17 FY2005 Results & FY2006
Slide 18: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 Compared with FY2004 Billion yen US$ US$ 8.0 8.0 50 Euro Euro 4.1 4.1 40.5 Other Other 7.0 7.0 30.9 30 22.0 19.1 10 1.7 (10) FY05 123.4 (5.0) FY04 82.9 (30) (28.2) Total Oper. Vol & Mix Exch. Product CR Mktg. Exp. Other Enhanc. Costs 18 FY2005 Results & FY2006 Project
Slide 19: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 Compared with FY2004 Billion yen Cost Cost Reductions Reductions 50 Product Product Upgrades Upgrades Net Net of of Raw Raw 40.5 incl. incl. Safety Safety & & Material Material Price Price Emissions Emissions Increases Increases 30.9 30 22.0 19.1 10 1.7 (10) FY05 123.
Slide 20: Operating Profit Changes
OPERATING PROFIT CHANGES FY2005 Compared with FY2004 Billion yen 50 Higher Higher R&D R&D and and 40.5 Depreciation Depreciation Offset Offset by by Other Other 30.9 30 Cost Cost Efficiencies Efficiencies 22.0 19.1 10 1.7 (10) FY05 123.4 (5.0) FY04 82.9 (30) (28.2) Total Oper. Vol & Mix Exch. Produc
Slide 21: FY2006 Projections
FY2006 PROJECTIONS 21 FY2005 Results & FY2006 Projections
Slide 22: FY2006 Financial Metrics
FY2006 FINANCIAL METRICS (Billion yen) Change FY2006 FY2005 Amount Pct. Operating Profit 135.0 123.4 11.6 9 % Ordinary Profit 130.0 101.5 28.5 28 % Profit Before Tax 120.0 117.5 2.5 2 % Net Income 75.0 66.7 8.3 12 % Operating ROS 4.4% 4.2% 0.2 Pts - EPS (Yen/Share) 53.6 51.5 2.1 4 % 22 FY2005 Result
Slide 23: Key Assumptions
KEY ASSUMPTIONS FY2006 FY2005 Change WHOLESALES (000) Consolidated 1,210 1,149 5 % REVENUE (¥Bils.) 3,100.0 2,919.8 6 % EXCHANGE RATES Yen / U.S. Dollar 110 113 ¥ (3) Yen / Euro 135 138 ¥ (3) 23 FY2005 Results & FY2006 Projections
Slide 24: Revenue Changes by Destination
REVENUE CHANGES BY DESTINATION FY2006 Compared With FY2005 10% Vol. & Mix 8 % Exchange (2)% 7% 6% 5% 4% 0% (Billion yen) Total Domestic Overseas FY06 3,100.0 920.0 2,180.0 FY05 2,919.8 887.7 2,032.1 24 FY2005 Results & FY2006 Projections
Slide 25: Japan
JAPAN FY2006 FY2005 Change Retail Volume (000) 287 287 0 % Market Share 4.9 % 4.9 % 0.0 Pts New MPV and CX-7 *US Spec 25 FY2005 Results & FY2006 Projections
Slide 26: United States
UNITED STATES FY2006 FY2005 Change Retail Volume (000) 290 262 11 % Market Share 1.7 % 1.5 % 0.2 Pts Introduction of New Crossover SUVs 26 FY2005 Results & FY2006 Projections
Slide 27: Europe
EUROPE FY2006 FY2005 Change Retail Volume (000) 300 282 6 % Market Share 1.6 % 1.5 % 0.1 Pts Continue Momentum with New Diesel Models 27 FY2005 Results & FY2006 Projections
Slide 28: China
CHINA FY2006 FY2005 Change Retail Volume (000) 150 130 15 % Market Share 2.2 % 2.1 % 0.1 Pts Further Sales Growth Projected 28 FY2005 Results & FY2006 Projections
Slide 29: Operating Profit Changes
OPERATING PROFIT CHANGES FY2006 Compared with FY2005 Billion yen 40 34.0 Wholesales Wholesales 30 up 24.5 up 5% 5% with with New New Products Products 20 11.6 10 0.0 0 FY06 135.0 (10) FY05 123.4 (12.7) (20) (15.5) (18.7) (30) Total Oper. Vol & Mix Exch. Product CR Mktg. Exp. Other Enhanc. Costs 29 F
Slide 30: Operating Profit Changes
OPERATING PROFIT CHANGES FY2006 Compared with FY2005 Billion yen 40 US$ US$ (7.3) (7.3) 34.0 Euro Euro (4.6) (4.6) 30 Other Other (3.6) (3.6) 24.5 20 11.6 10 0.0 0 FY06 135.0 (10) FY05 123.4 (12.7) (20) (15.5) (18.7) (30) Total Oper. Vol & Mix Exch. Product CR Mktg. Exp. Other Enhanc. Costs 30 FY200
Slide 31: Operating Profit Changes
OPERATING PROFIT CHANGES FY2006 Compared with FY2005 Billion yen 40 34.0 Product Product Upgrades Upgrades Cost Cost Reductions Reductions 30 incl. incl. Safety Safety & & 24.5 Net Net of of Raw Raw Emissions Emissions Material Material Price Price 20 11.6 Increases Increases 10 0.0 0 FY06 135.0 (10
Slide 32: Operating Profit Changes
OPERATING PROFIT CHANGES FY2006 Compared with FY2005 Billion yen 40 34.0 Higher Higher R&D R&D 30 24.5 Spend Spend 20 11.6 10 0.0 0 FY06 135.0 (10) FY05 123.4 (12.7) (20) (15.5) (18.7) (30) Total Oper. Vol & Mix Exch. Product CR Mktg. Exp. Other Enhanc. Costs 32 FY2005 Results & FY2006 Projections
Slide 33: Close
CLOSE 33 FY2005 Results & FY2006 Projections
Slide 34: Operating Profit History
OPERATING PROFIT HISTORY Billion yen 123.4 82.9 70.2 50.6 28.5 (14.9) FY2000 FY2001 FY2002 FY2003 FY2004 FY2005 34 FY2005 Results & FY2006 Projections
Slide 35: Challenges in FY2006
CHALLENGES IN FY2006 Continue Progress and Foundation Building under Mazda Momentum - Further Strengthen the Mazda Brand - North American Operations - Investment in the Future Next Mid Term Plan Development 35 FY2005 Results & FY2006 Projections
Slide 36: CX-9
CX-9 36 FY2005 Results & FY2006 Projections
Slide 37: 37 FY2005 Results & FY2006 Projections
37 FY2005 Results & FY2006 Projections
Slide 38: Disclaimer
DISCLAIMER The projections for FY 2006 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