Mazda Motor Corp. · TSE:7261
Mazda Motor — Q2 FY March 2019 Earnings Presentation
40 slides from Mazda Motor's earnings presentation, November 2018
Slide 1: Fiscal Year March 2019 Second Quarter Financial Results
FISCAL YEAR MARCH 2019 SECOND QUARTER FINANCIAL RESULTS
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights Fiscal Year March 2019 First Half Results Fiscal Year March 2019 Full Year Forecast Progress of Key Initiatives Mazda Motor Corporation 1
Slide 3: Highlights
HIGHLIGHTS 【FY March 2019 First Half Results】 Global sales were up 2% year on year to 796,000 units, a new record for the first half ⁃ Sales of crossover models have kept their momentum ⁃ Japan and ASEAN drove volume growth ⁃ CX-8 introduced in Australia and New Zealand; sales off to a good start
Slide 4: Fiscal Year March 2019 First Half Results
FISCAL YEAR MARCH 2019 FIRST HALF RESULTS Mazda Motor Corporation 3
Slide 5: FY March 2019 Global Sales Volume
FY MARCH 2019 GLOBAL SALES VOLUME First Half FY March FY March Change from (000) 2018 2019 Prior Year Volume YOY(%) Global sales volume Japan 96 103 6 7% North America 219 222 4 2% Europe 132 135 3 2% China 149 133 (16) (11)% Other Markets 187 202 16 8% Total 783 796 13 2% <Breakdown> USA 151 151 (0
Slide 6: Japan
JAPAN Sales were 103,000 units, up 7% year on year Market share was 4.1%. Registered vehicle market share was 5.2%, up Mazda2 0.4 points year on year First Half Sales Volume CX-8 is popular with a wide range of customers and selling well. (000) CX-5 maintained high sales 150 volumes on par wit
Slide 7: North America
NORTH AMERICA Updated Sales were 222,000 units, up 2% Mazda6 year on year USA: 151,000 units, on par with the previous year - Updated Mazda6 helped maintain sales volume despite declining demand for sedan models First Half Sales Volume - Sales of all crossover models grew year on year (000) 2%
Slide 8: Europe
EUROPE Sales were 135,000 units, up 2% year on year CX-5 sales remained strong, up 20％ year on year Sales in Europe excluding Russia CX-5 were 118,000 units, down 1% year on year First Half Sales Volume ⁃ Germany: 33,000 units, down 4% year on year (000) ⁃ UK: 19,000 units, on par with the 2%
Slide 9: China
CHINA Sales were 133,000 units, down 11% year on year Demand slowed and the sales environment deteriorated due to the US-China trade dispute and CX-4 others Sales of major models, including First Half Sales Volume Mazda3, declined (000) Holding new technology briefing (11)% and design forum
Slide 10: Other Markets
OTHER MARKETS Sales were 202,000 units, up 8% year on year Australia: 56,000 units, down 5% year on year - Sales of CX-5 were up 3% year on year to 14,000 units, maintaining CX-8 momentum despite a deteriorating sales environment First Half Sales Volume - CX-8 got off to a good start and is stea
Slide 11: FY March 2019 Financial Metrics
FY MARCH 2019 FINANCIAL METRICS First Half FY March FY March Change from (Billion yen) 2018 2019 Prior Year Amount YOY(%) Revenue 1,656.6 1,729.1 72.5 4% Operating profit 76.5 30.9 (45.6) (60)% Ordinary profit 96.5 54.5 (42.0) (43)% Profit before tax 87.4 50.0 (37.4) (43)% Net income 63.3 24.4 (38.9
Slide 12: FY March 2019 Operating Profit Change
FY MARCH 2019 OPERATING PROFIT CHANGE FY March 2019 1st Half vs. FY March 2018 1st Half Impact of the record Improvement rains, increased (Billion yen) marketing expenses, (Deterioration) Includes hike in reduced OEM supply, etc. raw material FY March prices Investment for US sales network 2018 refo
Slide 13: Impact of the Record Rains in July 2018
IMPACT OF THE RECORD RAINS IN JULY 2018 <Timely Disclosure (September 21)> Plants suspended operations immediately after the rains and operated at reduced production volumes after resuming operations Production loss of 44,000 vehicles and 23,000 knockdown kits for overseas Estimated negative p
Slide 14: Fiscal Year March 2019 Full Year Forecast
FISCAL YEAR MARCH 2019 FULL YEAR FORECAST Mazda Motor Corporation 13
Slide 15: FY March 2019 Global Sales Volume
FY MARCH 2019 GLOBAL SALES VOLUME Full Year FY March FY March Change from (000) 2018 2019 Prior Year Apr. Forecast Volume YOY(%) Volume Global sales volume Japan 210 216 6 3% 2 North America 435 434 (1) (0)% (23) Europe 269 270 1 0% 5 China 322 294 (28) (9)% (28) Other Markets 394 403 9 2% 0 Total 1
Slide 16: FY March 2019 Financial Metrics
FY MARCH 2019 FINANCIAL METRICS Full Year FY March FY March Change from (Billion yen) 2018 2019 Prior Year Apr. Forecast Amount YOY(%) Amount Revenue 3,474.0 3,530.0 56.0 2% (20.0) Operating profit 146.4 70.0 (76.4) (52)% (35.0) Ordinary profit 172.1 100.0 (72.1) (42)% (30.0) Profit before tax 157.5
Slide 17: FY March 2019 Operating Profit Change
FY MARCH 2019 OPERATING PROFIT CHANGE FY March 2019 Full Year vs. April Forecast (Billion yen) Improvement Reduced volume (Deterioration) including impact of the record rains, etc. April Forecast Volume & 105.0 Includes hike in Quality-related Mix raw material prices costs, etc. 100 R&D Cost October
Slide 18: FY March 2019 Operating Profit Change
FY MARCH 2019 OPERATING PROFIT CHANGE FY March 2019 Full Year vs. FY March 2018 Full Year Impact of the record Improvement (Billion yen) rains, increased (Deterioration) marketing expenses, reduced OEM supply, etc. FY March Investment for US sales network reforms, costs for compliance with 2018 Volu
Slide 19: Progress of Key Initiatives (1)
PROGRESS OF KEY INITIATIVES (1) Enhance product competitiveness with new car launches and continuous product updates • Updated Mazda2 in Japan is now powered by a SKYACTIV-G 1.5-liter gasoline engine • Updated CX-5 is the first model in Japan available with the SKYACTIV-G 2.5T turbo gasoline engin
Slide 20: Progress of Key Initiatives (2)
PROGRESS OF KEY INITIATIVES (2) On track with development of next- generation products and new technologies Launch the first next-generation product at the end of this fiscal year <New technologies slated for the next-generation products> SKYACTIV-X • SKYACTIV-X, next-generation gasoline engine
Slide 21: Progress of Key Initiatives (3)
PROGRESS OF KEY INITIATIVES (3) On track with sales network reforms in the United States • Started dealer support programs in July that provide incentives to comply with high brand standards • About 200 dealers have announced their intention to invest in upgrades, marking a good start to plans to
Slide 22: Progress of Key Initiatives (4)
PROGRESS OF KEY INITIATIVES（4） Announced electrification and connectivity strategies • Halve corporate average CO2 emissions by 2030 Electrification (vs. 2010 levels) • Deploy electrification in all production vehicles by 2030 Internal combustion engine with electrification: 95％ Electric vehicle:
Slide 23: In Closing
IN CLOSING Revised full year forecast downwards reflecting reduced sales, partly due to the effects of the record rains, foreign exchange impact and quality-related costs Aim to return ROS to the 3% range by introducing next-generation products, recovering from the impact of record rains and qua
Slide 24: Mazda Motor Corporation
POTSDA! & —s—— Mazda Motor Corporation
Slide 25: Appendix
APPENDIX Mazda Motor Corporation 24
Slide 26: Cash Flow and Net Cash
CASH FLOW AND NET CASH FY March 2018 FY March 2019 Change from (Billion yen) Full Year First Half Prior FY End Cash Flow - From Operating activities 207.8 60.7 - - From Investing activities (160.0) (39.5) - - Free Cash Flow 47.8 21.2 - Cash and Cash Equivalents 604.9 674.3 69.4 Net Cash 107.0 115.4
Slide 27: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA (Billion yen) 926.1 891.3 900 854.5 873.1 856.0 802.1 157.6 161.9 159.3 148.6 150.7 Other 136.4 183.1 177.0 179.3 156.6 175.6 600 Europe 155.8 265.8 274.8 285.5 300.5 262.3 North 288.3 America 300 319.6 Japan 254.2 264.7 256.7 267.4 221.6 0 1Q 2Q 3Q 4Q 1Q 2Q FY March 2018
Slide 28: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 926.1 891.3 873.1 856.0 900 854.5 69.8 802.1 63.8 63.7 68.6 62.3 69.4 Other 58.2 68.3 65.7 67.5 67.7 Parts 61.7 600 Vehicles / 759.3 787.7 745.1 682.2 723.3 718.9 Parts for 300 Overseas Production 0 1Q 2Q 3Q 4Q 1Q 2Q FY March 2018 FY March 2019 Mazda Motor Corporatio
Slide 29: Revenue Change
REVENUE CHANGE FY March 2019 1st Half vs. FY March 2018 1st Half (Billion yen) FY March 2019 1,729.1 FY March 2018 1,656.6 Domestic 3% Overseas 2% 8% 5% 4% 3% (0)% (3)% Total Volume & Mix Exchange Mazda Motor Corporation 28
Slide 30: Revenue Change
REVENUE CHANGE FY March 2019 2nd Quarter vs. FY March 2018 2nd Quarter (Billion yen) FY March 2019 856.0 Domestic 2% FY March 2018 854.5 Overseas (1)% 8% 3% 1% 0% (3)% (1)% Total Volume & Mix Exchange Mazda Motor Corporation 29
Slide 31: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES First Half FY March FY March Change from (000) 2018 2019 Prior Year Global sales volume Volume YOY(%) Japan 96 103 6 7% North America 219 222 4 2% Europe 132 135 3 2% China 149 133 (16) (11)% Other Markets 187 202 16 8% Total 783 796 13 2% Consolidated
Slide 32: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from (000) 2018 2019 Prior Year Apr. Forecast Global sales volume Volume YOY(%) Volume Japan 210 216 6 3% 2 North America 435 434 (1) (0)% (23) Europe 269 270 1 0% 5 China 322 294 (28) (9)% (28) Other Markets 394 403
Slide 33: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Second Quarter FY March FY March Change from (000) 2018 2019 Prior Year Global sales volume Volume YOY(%) Japan 55 54 (1) (2)% North America 112 106 (6) (5)% Europe 68 68 (0) (0)% China 78 65 (13) (17)% Other Markets 92 100 7 8% Total 406 392 (13) (3)%
Slide 34: FY March 2019 Financial Metrics
FY MARCH 2019 FINANCIAL METRICS Second Quarter FY March FY March Change from (Billion yen) 2018 2019 Prior Year Amount YOY(%) Revenue 854.5 856.0 1.5 0% Operating profit 36.6 (2.2) (38.8) - Ordinary profit 44.1 12.1 (32.0) (72)% Profit before tax 36.9 7.0 (29.9) (81)% Net income 26.7 3.8 (22.9) (86)
Slide 35: FY March 2019 Operating Profit Change
FY MARCH 2019 OPERATING PROFIT CHANGE FY March 2019 2nd Quarter vs. FY March 2018 2nd Quarter Impact of the record rains, Improvement (Billion yen) increased marketing expenses, reduced OEM (Deterioration) supply, etc. FY March Includes hike in Investment for US sales network 2018 raw material price
Slide 36: Crossover Vehicle Ratio
CROSSOVER VEHICLE RATIO （000 units） 1,500 Crossover vehicles 34% 39% 46% 12% 29% 27% 21% 1,000 Passenger 500 vehicles, and others - FY March 2012 2013 2014 2015 2016 2017 2018 2019 Global Sales 1,247 1,235 1,331 1,397 1,534 1,559 1,631 1,617 Volume （000 units） Results Plan Mazda Motor Corporation 35
Slide 37: Key Data
KEY DATA (Billion Yen) 138.0 150 Full 136.0 135.0 Year Full 104.1 100 Year 90.0 Full 87.0 Year First 65.7 63.5 Half First 46.6 First 50 43.1 43.6 Half 37.8 Half 0 FY March 2018 2019 2018 2019 2018 2019 Capital Depreciation R&D Cost Expenditure Cost Mazda Motor Corporation 36
Slide 38: Exchange Rates
EXCHANGE RATES Full Year FY March FY March Change from (Yen) 2018 2019 Prior Year US Dollar 111 110 (1) Euro 130 130 0 Canadian Dollar 86 85 (2) Australian Dollar 86 81 (5) British Pound 147 146 (1) Mazda Motor Corporation 37
Slide 39: Dividend Payment
DIVIDEND PAYMENT Trend of dividends per share Interim dividends 35 35 35 Year-end dividends 30 20 20 20 15 (forecast） （見通し） 10 15 15 15 15 1 10 FY March 2014 FY March 2015 FY March 2016 FY March 2017 FY March 2018 FY March 2019 Results Plan Note) A share consolidation was implemented on common stock
Slide 40: 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