Mazda Motor Corp. · TSE:7261

Mazda Motor — Q3 FY March 2018 Earnings Presentation

38 slides from Mazda Motor's earnings presentation, February 2018

  1. Slide 1: Fiscal Year March 2018 Third Quarter Financial Results

    FISCAL YEAR MARCH 2018 THIRD QUARTER FINANCIAL RESULTS

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2018 Nine Month Results  Fiscal Year March 2018 Full Year Forecast  Progress of Key Initiatives Mazda Motor Corporation 1

  3. Slide 3: Highlights

    HIGHLIGHTS [Nine Month Results]  Global sales were up 2% from the prior year to 1,186,000 units, a new record ⁃ Global roll out of new CX-5 and strong sales in China contributed to volume growth ⁃ Started production of new CX-5 at Hofu Plant in October 2017, supporting sales through enhanced produc

  4. Slide 4: Fiscal Year March 2018 Nine Month Results

    FISCAL YEAR MARCH 2018 NINE MONTH RESULTS Mazda Motor Corporation 3

  5. Slide 5: FY March 2018 Global Sales Volume

    FY MARCH 2018 GLOBAL SALES VOLUME Nine Month FY March FY March Change from (000) 2017 2018 Prior Year Global sales volume Volume YOY(%) Japan 132 139 7 5% North America 331 321 (10) (3)% Europe 191 193 2 1% China 227 245 18 8% Other Markets 281 288 7 3% Total 1,162 1,186 25 2% <Breakdown> USA 233 22

  6. Slide 6: Japan

    JAPAN  Sales were 139,000 units, up 5% year on year  Market share was 3.8％. Registered vehicle market share was 4.7%, up 0.1 points from the prior year Mazda2  Sales of new CX-5 were strong, Nine Month Sales Volume contributing to volume growth (000)  Sales of new CX-8 started in December. Order

  7. Slide 7: North America

    NORTH AMERICA  Sales were 321,000 units, down 3% year on year - Sales of new CX-5 were strong, but the market for sedans remains tough Mazda6 - Unveiled updated Mazda6 with SKYACTIV-G 2.5T and other enhancements Nine Month Sales Volume (000)  USA: Sales were 220,000 units, 400 331 (3)% down 5% yea

  8. Slide 8: Europe

    EUROPE  Sales were 193,000 units, up 1% year on year  Sales of new CX-5 shifted into high gear and achieved 14% growth year on year New CX-5  Germany: 50,000 units, up 7% Nine Month Sales Volume year on year (000) 191 1% 193  UK: 24,000 units, down 19% 200 year on year due to shrinking 150 deman

  9. Slide 9: China

    CHINA  Sales were 245,000 units, up 8% year on year  Record sales of the first nine months New CX-5  Strong sales of Mazda3 and Nine Month Sales Volume CX-4 contributed to volume growth (000) 300 227 8% 245  Strong sales of new CX-5, launched in September. 200 The model’s more mature design and

  10. Slide 10: Other Markets

    OTHER MARKETS  Sales were 288,000 units, up 3％ year on year  Australia: 86,000 units, down 2％ year on year - Mazda remains the country’s second highest-selling brand Mazda3 - CX-5 and CX-9 remained strong. CX-5 was the top- Nine Month Sales Volume selling car in its segment (000)  ASEAN: 83,000 u

  11. Slide 11: FY March 2018 Financial Metrics

    FY MARCH 2018 FINANCIAL METRICS Nine Month FY March FY March Change from (Billion yen) 2017 2018 Prior Year Amount YOY(%) Revenue 2,348.6 2,547.9 199.3 8% Operating profit 102.0 107.1 5.1 5% Ordinary profit 117.9 134.8 16.9 14 % Profit before tax 110.7 124.8 14.1 13 % Net income 79.9 84.9 5.0 0 6% O

  12. Slide 12: FY March 2018 Operating Profit Change

    FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 Nine Month vs. FY March 2017 Nine Month Improvement (Billion yen) (Deterioration) Impact of reduced Includes hike in wholesale volume and raw material increased marketing prices 150 expenses in US, etc. Cost FY March FY March Improvement Exchange R

  13. Slide 13: Fiscal Year March 2018 Full Year Forecast

    FISCAL YEAR MARCH 2018 FULL YEAR FORECAST Mazda Motor Corporation 12

  14. Slide 14: FY March 2018 Global Sales Volume

    FY MARCH 2018 GLOBAL SALES VOLUME FY March 2018 Change from (000) 1st Half 2nd Half Full Year Prior Year Nov. Forecast YOY(%) Volume Global sales volume Japan 96 114 210 4% (3) North America 219 212 430 0% (13) Europe 132 136 267 2% 0 China 149 159 308 6% 16 Other Markets 187 197 384 2% 0 Total 783

  15. Slide 15: FY March 2018 Financial Metrics

    FY MARCH 2018 FINANCIAL METRICS FY March 2018 Change from (Billion yen) 1st Half 2nd Half Full Year Prior Year Nov. Forecast Revenue 1,656.6 1,843.4 3,500.0 285.6 150.0 Operating profit 76.5 73.5 150.0 24.3 0.0 Ordinary profit 96.5 73.5 170.0 30.5 7.0 Profit before tax 87.4 67.6 155.0 26.6 5.0 Net i

  16. Slide 16: FY March 2018 Operating Profit Change

    FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 Full Year vs. November Forecast Improvement (Billion yen) (Deterioration) Impact of reduced wholesale volume and increased marketing expenses in US, etc. Cost Nov. Feb. Improvement Forecast Exchange R&D Cost Forecast Volume & + 5.0 + 0.0 + 0.0 150.

  17. Slide 17: FY March 2018 Operating Profit Change

    FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 Full Year vs. FY March 2017 Full Year Improvement (Billion yen) (Deterioration) Impact of reduced Includes hike in Improvement of wholesale volume and raw material quality-related 200 increased marketing prices costs expenses in US, etc. Cost FY Ma

  18. Slide 18: Progress of Key Initiatives

    PROGRESS OF KEY INITIATIVES Mazda Motor Corporation 17

  19. Slide 19: Progress of Key Initiatives

    PROGRESS OF KEY INITIATIVES  Products and R&D ⁃ Launched new CX-8 three-row SUV in Japan in December ⁃ Unveiled updated Mazda6 that features SKYACTIV-G 2.5T and cylinder deactivation system ⁃ Enhanced lineup of advanced safety technologies to provide safety and peace of mind to more customers ⁃ Con

  20. Slide 20: Progress of Key Initiatives

    PROGRESS OF KEY INITIATIVES  Global Production and Cost Improvement ⁃ Powertrain plant in Thailand: Opened a new engine machining factory and increasing engine production capacity to 100,000 units per year ⁃ Hofu plant: Started new CX-5 production to support sales by enhancing production flexibilit

  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 2017 FY March 2018 Change from (Billion yen) Full Year Nine Month Prior FY End Cash Flow - From Operating activities 161.1 115.3 - - From Investing activities (63.8) (124.9) - - Free Cash Flow 97.3 (9.7) - Cash and Cash Equivalents 526.9 579.9 53.0 Net Cash 35.4 55.7

  24. Slide 24: Revenue by Geographic Area

    REVENUE BY GEOGRAPHIC AREA (Billion yen) 891.3 865.8 854.5 900 802.3 802.1 776.2 770.1 144.8 161.9 148.6 Other 125.6 132.7 130.4 136.4 149.6 179.3 177.0 600 Europe 140.6 155.8 154.1 145.4 264.0 285.5 North 236.0 291.6 288.3 274.8 281.4 300 America 307.4 Japan 215.1 256.0 239.7 221.6 254.2 264.7 0 1Q

  25. Slide 25: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 865.8 891.3 900 854.5 802.3 802.1 63.8 776.2 770.1 66.4 63.7 68.3 Other 56.1 56.4 58.0 63.2 58.2 67.5 58.5 61.7 Parts 57.4 57.4 600 Vehicles / 736.2 759.3 723.3 Parts for 662.8 656.3 685.8 682.2 300 Overseas Production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY March 2017 FY March 20

  26. Slide 26: Revenue Change

    REVENUE CHANGE FY March 2018 Nine Month vs. FY March 2017 Nine Month (Billion yen) FY March 2018 2,547.9 Domestic 2% FY March 2017 2,348.6 Overseas 2% 10% 8% 5% 5% 4% 0% Total Volume & Mix Exchange Mazda Motor Corporation 25

  27. Slide 27: Revenue Change

    REVENUE CHANGE FY March 2018 Third Quarter vs. FY March 2017 Third Quarter (Billion yen) FY March 2018 891.3 Domestic 2% 15% FY March 2017 802.3 Overseas 4% 11% 10% 6% 5% 5% 0% Total Volume & Mix Exchange Mazda Motor Corporation 26

  28. Slide 28: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from (000) 2017 2018 Prior Year Nov. Forecast Global sales volume Volume YOY(%) Volume Japan 203 210 7 4% (3) North America 429 430 2 0% (13) Europe 262 267 6 2% 0 China 292 308 17 6% 16 Other Markets 373 384 9 2% 0 T

  29. Slide 29: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Nine Month FY March FY March Change from (000) 2017 2018 Prior Year Global sales volume Volume YOY(%) Japan 132 139 7 5% North America 331 321 (10) (3)% Europe 191 193 2 1% China 227 245 18 8% Other Markets 281 288 7 3% Total 1,162 1,186 25 2% Consolid

  30. Slide 30: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Third Quarter FY March FY March Change from (000) 2017 2018 Prior Year Global sales volume Volume YOY(%) Japan 39 43 3 8% North America 107 103 (4) (4)% Europe 57 61 4 8% China 94 96 2 2% Other Markets 90 101 11 12 % Total 387 404 16 4% Consolidated wh

  31. Slide 31: FY March 2018 Financial Metrics

    FY MARCH 2018 FINANCIAL METRICS Third Quarter FY March FY March Change from (Billion yen) 2017 2018 Prior Year Amount YOY(%) Revenue 802.3 891.3 89.0 11 % Operating profit 13.7 30.6 16.9 125 % Ordinary profit 35.3 38.3 3.0 9% Profit before tax 34.5 37.4 2.9 8% Net income 23.8 21.6 (2.2) 0 (10)% Oper

  32. Slide 32: FY March 2018 Operating Profit Change

    FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 Third Quarter vs. FY March 2017 Third Quarter Improvement (Deterioration) (Billion yen) R&D Cost FY March Cost + 3.5 Other 2018 Improvement 30.6 + 3.9 Exchange (1.9) + 15.6 25 FY March 2017 Volume & 13.7 Mix (4.2) Change from Prior Year 16.9 0 Mazd

  33. Slide 33: Exchange Rates

    EXCHANGE RATES Change from Prior Nov. FY March 2017 FY March 2018 Year Forecast （Yen） 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Full Year Full Year US Dollar 105 112 108 111 112 111 3 1 Euro 118 119 119 126 134 130 11 3 Canadian Dollar 81 84 83 86 88 87 4 1 Australian Dollar 79 84 82 8

  34. Slide 34: Crossover Vehicle Ratio

    CROSSOVER VEHICLE RATIO （000 units） 1,500 Crossover vehicles 34% 39% 12% 28% 27% 21% 1,000 Passenger 500 vehicles, and others - FY12/3 FY13/3 FY14/3 FY15/3 FY16/3 FY17/3 FY18/3 Global Sales 1,247 1,235 1,331 1,397 1,534 1,559 1,600 Volume (000 units) Results Plan Mazda Motor Corporation 33

  35. Slide 35: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES FY March 2018 Change from Prior Year (000) 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Global sales volume Japan 96 114 210 4 4 7 North America 219 212 430 (6) 7 2 Europe 132 136 267 (2) 8 6 China 149 159 308 16 1 17 Other Markets 187 197 3

  36. Slide 36: Key Data

    KEY DATA (Billion yen) 150 140.0 Full 126.9 120.0 Year 100 Full 94.4 Year Full 87.0 82.4 97.2 Year Nine 93.8 Month Nine 66.4 Nine 64.8 50 60.4 60.1 Month Month 0 FY March FY March FY March FY March FY March FY March 2017 2018 2017 2018 2017 2018 Capital Depreciation R&D Cost Expenditures Cost Mazda

  37. Slide 37: Dividend Payment

    DIVIDEND PAYMENT Trend of dividends per share Interim dividends 35 35 Year-end dividends 30 20 20 15 （Plan） 10 15 15 15 1 10 FY March 2014 FY March 2015 FY March 2016 FY March 2017 FY March 2018 Results Plan Note) A share consolidation was implemented on common stock with a ratio of five shares to o

  38. Slide 38: 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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