Mazda Motor Corp. · TSE:7261
Mazda Motor — Q3 FY2008 Earnings Presentation
39 slides from Mazda Motor's earnings presentation, Feb 4, 2009
Slide 1: FY2008 Third Quarter Results and Full Year Forecast
FY2008 THIRD QUARTER RESULTS AND FULL YEAR FORECAST Mazda Premacy Hydrogen RE Hybrid Mazda Motor Corporation February 4, 2009 1
Slide 2: Outline
OUTLINE Highlights FY2008 Nine Months Results FY2008 Full Year Forecast Emergency Measures and Initiatives for FY2009 and Onward In Summary 2
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: FY2008 Nine Months Highlights
FY2008 NINE MONTHS HIGHLIGHTS Revenue down 17% to ¥2,087.9 billion. Operating Profit down 66% to ¥36.5 billion. Net Income down 36% to ¥28.9 billion, Reflecting Exchange Gains Global Sales down 1% to 964,000 units due to Deteriorations of Global Sales Environment from the 2nd Half New-generation Pro
Slide 5: FY2008 Full Year Forecast Highlights
FY2008 FULL YEAR FORECAST HIGHLIGHTS Revised down Full Year Forecasts at All Profit Levels Reflecting Sharp Deterioration of Global Sales Environment and Recent Foreign Exchange Trend Revenue down 27% to ¥2,550 billion. Operating Profit down ¥187.1 billion to a Loss of ¥25 billion Accelerate Emergen
Slide 6: FY2008 Nine Months Results
FY2008 NINE MONTHS RESULTS 6
Slide 7: FY2008 Nine Months Financial Metrics
FY2008 NINE MONTHS FINANCIAL METRICS (Billion yen) Nine Months Change FY2008 FY2007 Amount Pct. Revenue 2,087.9 2,506.3 (418.4) (17) % Operating profit 36.5 108.4 (71.9) (66) % Ordinary profit 52.1 89.7 (37.6) (42) % Profit before tax 49.9 86.3 (36.4) (42) % Net income 28.9 45.0 (16.1) (36) % Operat
Slide 8: Key Data
KEY DATA Nine Months (Billion yen) - Reinforcement of next- generation products and 100 technology developments - Emergency measures 80 New products 60 40 85.9 81.2 70.4 53.7 57.4 49.3 20 0 FY07 FY08 FY07 FY08 FY07 FY08 Capital Spending Depreciation R&D 8
Slide 9: Key Data
KEY DATA Nine Months FY2008 FY2007 Change Global retail volume (000) 964 975 (1) % Exchange rate Yen/US Dollar 103 117 ¥ (14) Yen/Euro 151 163 ¥ (12) 9
Slide 10: Revenue Change
REVENUE CHANGE FY2008 Nine Months Compared With FY2007 Nine Months 10% Japan (1%) (Billion yen) Overseas (1%) 5% FY08 2,087.9 FY07 2,506.3 0% (5)% (2%) (10)% (7%) (8%) (15)% (17%) (9%) (20)% Total Vol & Mix Exchange Accounting Standard Change 10
Slide 11: Japan
JAPAN Nine Months Sales Volume (000 units) 200 164 175 (6%) 150 100 Even with new model effects of Atenza and Biante, sales were down 6% due to 50 substantial falls in sales of existing model impacted by lower registered vehicle demand 0 Share remained at 4.7% FY2007 FY2008 11
Slide 12: North America
NORTH AMERICA Nine Months Sales Volume (000 units) 271 302 300 (10%) Canada, other 250 Canada, 85 other 200 0% 85 Due to lower industry 150 demand since the fall, sales in North America were down USA 10% 100 USA 217 Mazda6 was received 186 positively 50 (14％) Sales in the US declined 14% to 186,000
Slide 13: Europe
EUROPE Nine Months Sales Volume (000 units) 242 228 250 6% 200 150 Sales in Europe increased 6%, with higher sales in 100 Russia up 39% to 57,000 units 50 Sales in CY2008 hit the record sales Introduced hydrogen RE 0 vehicles to Norway’s public roads FY2007 FY2008 13
Slide 14: China
CHINA Nine Months Sales Volume (000 units) 120 97 100 38% 80 71 60 With new car effect of Mazda2 and strong sales of 40 Mazda6, sales were up 38% from the prior year 20 Sales outlets increased 37 to 212 0 FY2007 FY2008 14
Slide 15: Other Markets
OTHER MARKETS Nine Months Sales Volume (000 units) 190 199 200 (5%) 150 100 New car effect of Mazda2 continued Sales in Australia were 50 58,000 units, flat year over year (Achieved the highest ever sales volume in CY2008) 0 Sales declined 5%, due to FY2007 FY2008 lower volume in Taiwan, Thailand an
Slide 16: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 Nine Months Compared With FY2007 Nine Months (Billion yen) - Impact of higher volume Improvement 140 in Europe (Deterioration) Vol & Mix - The improvement substantially reduced due 120 FY2007 + 11.0 Exchange to lower sales in global 108.4 markets in the 3rd quarter 100
Slide 17: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 Nine Months Compared With FY2007 Nine Months (Billion yen) Improvement Product Enhancement (11.5) 140 (Deterioration) Regulations (0.6) Vol & Mix FY2007 + 11.0 Exchange Accelerate Cost 120 108.4 Innovation initiatives 100 - Reduction of non- urgent R&D cost - Reduction
Slide 18: FY2008 Full Year Forecast
FY2008 FULL YEAR FORECAST 18
Slide 19: FY2008 Full Year Forecast Financial Metrics
FY2008 FULL YEAR FORECAST FINANCIAL METRICS Change Memo: (Billion yen) Full Year from FY2007 FY2008 FY2008 FY2007 Amount Pct. Oct Pub Revenue 2,550.0 3,475.8 (925.8) (27) % 3,000.0 Operating profit (25.0) 162.1 (187.1) - 90.0 Ordinary profit (15.0) 148.5 (163.5) - 90.0 Profit before tax (20.0) 143.1
Slide 20: Key Data
KEY DATA Full Year Change from FY2008 FY2007 FY2007 Oct Pub (000) Global retail volume Japan 218 256 (38) (29) North America 342 406 (64) (54) USA 238 295 (57) (42) Europe 314 327 (13) (56) China 127 101 26 (3) Other 239 273 (34) (23) Total 1,240 1,363 (123) (165) Exchange rate Yen/US Dollar 100 114
Slide 21: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 Full Year Compared With FY2007 Full Year (Billion yen) Improvement Sales declines in global markets (Deterioration) FY2007 - Reduction of non- 200 162.1 US Dollar (42.0) urgent R&D cost Vol & Mix Euro (18.0) - Reduction of quality- Other (43.0) related cost 150 Product
Slide 22: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 Full Year Compared With October Plan (Billion yen) Improvement 120 Sales declines in global markets (Deterioration) Oct Pub 90.0 Vol & Mix - Reduction of non- 80 urgent R&D cost - Reduction of quality- related cost 40 US Dollar (6.0) Euro (7.0) FY2008 Other (12.0) (25.
Slide 23: Emergency Measures and Initiatives for FY2009 and Onward
EMERGENCY MEASURES AND INITIATIVES FOR FY2009 AND ONWARD 23
Slide 24: Emergency Measures
EMERGENCY MEASURES Global Inventory Adjustment - Additional 148,000 units Production Cut from October Plan - Change to One Day-Shift Operations at Ujina No.2 and Hofu No.2 Plants. Stop All Production Lines Every Friday (February and March) Fixed Cost Reduction - Compress Labor Cost Through Voluntary
Slide 25: Emergency Measures
EMERGENCY MEASURES (000) Dealer Inventory Trend in Europe and USA 147 150 133 (19) (33) 74 114 100 Europe 72 (16) Europe 58 50 USA 73 USA 61 56 (17) 0 '08/03 '08/12 '09/03 Plan 25
Slide 26: For Next Fiscal Year and Onward
FOR NEXT FISCAL YEAR AND ONWARD Reassess Product Strategy Continue to Align Production with Industry Demand Reassess Sales Strategy in Key Markets Accelerate Cost Innovation Initiatives and Further Improve Business Efficiency Further Focus on Environmental and Safety Technologies 26
Slide 27: In Summary
IN SUMMARY 27
Slide 28: In Summary
IN SUMMARY Revised Full Year Forecast Down to Operating Loss of ¥25 billion Ordinary Loss at ¥15 billion Due to Exchange Gains Accelerate Emergency Measures Change to Streamlined and Lean Business Structure Year-end Dividend Undecided 28
Slide 29: 29
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Slide 30: Appendix
APPENDIX 30
Slide 31: FY2008 Third Quarter Financial Metrics
FY2008 THIRD QUARTER FINANCIAL METRICS (Billion yen) 3rd Quarter Change FY2008 FY2007 Amount Pct. Revenue 512.4 850.1 (337.7) (40) % Operating profit (24.2) 35.3 (59.5) - Ordinary profit 3.6 32.1 (28.5) (89) % Profit before tax 3.1 32.0 (28.9) (90) % Net income (0.6) 15.9 (16.5) - Operating ROS (4.7
Slide 32: Key Data
KEY DATA 3rd Quarter FY2008 FY2007 Change Global retail volume (000) 263 316 (17) % Exchange rate Yen/U.S. Dollar 96 113 ¥ (17) Yen/Euro 127 164 ¥ (37) 32
Slide 33: Key Data
KEY DATA 3rd Quarter FY2008 FY2007 Change Global Retail Volume (000) Japan 41 52 (11) North America 71 89 (18) Europe 63 75 (12) China 34 30 4 Other 54 70 (16) Total 263 316 (53) Consolidated Wholesales (000) Japan 45 53 (8) North America 70 95 (25) Europe 61 78 (17) China 5 1 4 Other 62 75 (13) Tot
Slide 34: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 Third Quarter With FY2007 Third Quarter (Billion yen) Improvement 80 (Deterioration) FY2007 35.3 40 Vol & Mix FY2008 (24.2) Exchange 0 (34.1) Marketing Other CR Product + 13.7 Expense + 13.0 Material Enhancement + 7.1 (40) (42.0) (3.6) (13.6) (80) Change (59.5) 34
Slide 35: Revenue by Region and by Segment
REVENUE BY REGION AND BY SEGMENT FY2008 Nine Months Compared With FY2007 Nine Months By Region By Segment 2,506.3 2,087.9 2,506.3 2,087.9 (Billion yen) (17%) (17%) 2,500 251.2 (22%) (39%) 367.1 2,000 602.3 (11%) 194.8 Other 213.8 224.6 Other (2%) 210.5 Parts 536.7 Europe 1,500 (21%) 724.6 570.7 Nort
Slide 36: Key Data
KEY DATA FY2008 Nine (Billion yen) Months 4Q Full Year Revenue 2,087.9 462.1 2,550.0 Operating profit 36.5 (61.5) (25.0) Ordinary profit 52.1 (67.1) (15.0) Profit before tax 49.9 (69.9) (20.0) Net income 28.9 (41.9) (13.0) Operating ROS 1.7 % (13.3) % (1.0) % EPS(Yen/Share ） 20.8 (30.7) (9.9) 36
Slide 37: Key Data
KEY DATA Full Year Volume (000) FY2008 Change from 9 Months 4Q Full Year FY2007 Oct Pub Consolidated Wholesales Japan 166 53 219 (38) (27) North America 277 61 338 (48) (68) Europe 233 54 287 (36) (65) China 15 2 17 8 (1) Other 200 39 239 (26) (19) Total 891 209 1,100 (140) (180) 37
Slide 38: Key Data
KEY DATA - Continue to reinforce (Billion yen) next-generation products and technology developments - Promote efficiency 114.4 101.0 100 88.0 New Products Full 75.5 Year 76.0 66.5 50 85.9 81.2 70.4 53.7 57.4 1Q-3Q 49.3 TTL 0 FY07 FY08 FY07 FY08 FY07 FY08 Capital Spending Depreciation R&D 38
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