Mazda Motor Corp. · TSE:7261
Mazda Motor — H1 FY2008 Earnings Presentation
49 slides from Mazda Motor's earnings presentation, Oct 30, 2008
Slide 1: FY2008 1st Half Results & Full Year Projection
FY2008 1st HALF RESULTS & FULL YEAR PROJECTION “Mazda Kiyora” at Paris Motor Show Mazda Motor Corporation October 30, 2008 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Overview FY2008 First Half Results FY2008 Full Year Forecast In Summary 2
Slide 3: Overview
OVERVIEW 3
Slide 4: FY2008 First Half Results Highlights
FY2008 FIRST HALF RESULTS HIGHLIGHTS Operating profit declined 17% to ¥60.7 billion Revenue was down 5% to ¥1,575.5 billion Net income was up 2% to ¥29.5 billion Introduced new Biante in Japan and a new Mazda6 developed exclusively for the North American market Global sales volume was 701,000 units,
Slide 5: FY2008 Full Year Forecast Highlights
FY2008 FULL YEAR FORECAST HIGHLIGHTS Operating profit down 44% to ¥90 billion. Revised forecast reflecting deteriorating global sales environment and material price hikes Revenue down 14% to ¥3 trillion Net income down 46% to ¥50 billion Minimized impact of future exchange fluctuations on ordinary p
Slide 6: FY2008 First Half Results
FY2008 FIRST HALF RESULTS 6
Slide 7: FY2008 First Half Financial Metrics
FY2008 FIRST HALF FINANCIAL METRICS (Billion yen) First Half Change FY2008 FY2007 Amount Pct. Revenue 1,575.5 1,656.2 (80.7) (5) % Operating profit 60.7 73.1 (12.4) (17) % Ordinary profit 48.5 57.6 (9.1) (16) % Profit before tax 46.8 54.3 (7.5) (14) % Net income 29.5 29.1 0.4 2 % Operating ROS 3.9 %
Slide 8: Key Data
KEY DATA (Billion yen) Reinforcement of next- generation product and technology developments 80 First Half New products 60 40 59.9 57.5 56.3 20 35.3 37.9 32.7 0 FY07 FY08 FY07 FY08 FY07 FY08 Capital Spending Depreciation R&D Cost 8
Slide 9: Cash Flow & Net Debt
CASH FLOW & NET DEBT FY2008 FY2007 (Billion) First Half Full Year Change Cash Flow - Operating C/F 13.0 103.0 - - Investment C/F (35.2) (92.8) - - Free C/F (22.2) 10.2 - Net Debt 374.8 281.1 (93.7) Net Debt-to-Equity 66 % 51 % (15) Pts 9
Slide 10: Key Data
KEY DATA First Half FY2008 FY2007 Change Global retail volume (000) 701 659 6 % Exchange rate Yen/US Dollar 106 119 ¥ (13) Yen/Euro 163 162 ¥ 1 10
Slide 11: Revenue Change
REVENUE CHANGE FY2008 First Half Compared With FY2007 First Half Domestic 0% 10% 8% Overseas 8% 5% (Billion yen) FY08 1,575.5 FY07 1,656.2 0% (5)% (4%) (5%) (10)% (9%) (15)% 4% Total Vol & Mix Exchange Accounting Standard Change 11
Slide 12: Japan
JAPAN First Half Sales Volume (000 units) 123 123 0% 100 Effects of New Biante and New Atenza 50 Despite lower registered vehicle demand, sales remained flat from the prior year 0 Share improved 0.1 points to 5.1% FY2007 FY2008 12
Slide 13: North America
NORTH AMERICA First Half Sales Volume (000 units) 213 200 (6%) 200 Canada, other Canada, other 64 150 (2%) 62 100 Introduction of new Mazda6 to the North American USA market USA 149 In the US, while total 50 138 (8％) industry was down 15%, Mazda sales were down 8% 0 Sales in Mexico were up 30% to 10
Slide 14: Europe
EUROPE First Half Sales Volume (000 units) 179 200 153 17% 150 100 New Mazda2, new Mazda6, CX-7 and Mazda3 contributed to growth 50 Sales in Russia increased 82% to 43,000 units Established National Sales 0 Companies in Turkey and the Netherlands FY2007 FY2008 14
Slide 15: China
CHINA First Half Sales Volume (000 units) 63 53% 60 41 40 Sales up 53% with expanded product lineup 20 Mazda6 sales remained strong Number of outlets increased by 17 to 192 0 FY2007 FY2008 15
Slide 16: Other Markets
OTHER MARKETS First Half Sales Volume (000 units) 136 150 5% 129 100 New Mazda2 and CX-9 continued to contribute to growth 50 Sales in Australia were up 3,000 units to 41,000 units Volume growth in Australia, Israel and South Africa was 0 partially offset by declines in Taiwan and Thailand, FY2007 F
Slide 17: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 First Half Compared With FY2007 First Half (Billion yen) 140 Vol & Mix + 45.1 Exchange 120 CR Material etc. Improvement + 17.6 100 Product (Deterioration) Enhancement Marketing FY2007 Expense (28.0) 80 73.1 (8.5) FY2008 (23.6) Others (7.1) 60.7 60 (7.9) 40 YOY Change (
Slide 18: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 First Half Compared With FY2007 First Half (Billion yen) 〔Factor for increase〕 ・Higher sales in all markets except 140 for Japan and North America ・Strong sales of core models Vol & Mix US Dollar (23.0) + 45.1 Exchange Euro 1.0 120 Other (6.0) CR Material etc. Improvem
Slide 19: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 First Half Compared With FY2007 First Half (Billion yen) Product Enhancement (8.0) Impact of raw 140 Regulations (0.5) material price hikes Vol & Mix + 45.1 Exchange 120 CR Material etc. Improvement + 17.6 100 Product (Deterioration) Enhancement Marketing FY2007 Expens
Slide 20: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 First Half Compared With FY2007 First Half (Billion yen) Higher depreciation and quality related cost 140 Higher cost Vol & Mix mainly in Europe 120 + 45.1 Exchange CR Material etc. Improvement + 17.6 100 Product (Deterioration) Enhancement Marketing FY2007 Expense (28
Slide 21: FY2008 Full Year Forecast
FY2008 FULL YEAR FORECAST 21
Slide 22: 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. April Pub Revenue 3,000.0 3,475.8 (475.8) (14) % 3,000.0 Operating profit 90.0 162.1 (72.1) (44) % 115.0 Ordinary profit 90.0 148.5 (58.5) (39) % 110.0 Profit before tax 83.0
Slide 23: Key Data
KEY DATA (Billion yen) - Continue to reinforce next-generation product and technology developments - Promote efficiency 114.4 111.0 New products 100 90.0 75.5 Full 73.0 66.5 Year 50 59.9 56.3 57.5 First 35.3 37.9 32.7 Half 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) 1,405 1,363 3 % Exchange rate Yen/US Dollar 103 114 ¥ (11) Yen/Euro 152 162 ¥ (10) 24
Slide 25: Japan
JAPAN (000) Full Year Sales Volume 300 256 247 (3%) 250 200 Continue to maximize new vehicle effects of New Biante and New Atenza 150 Volume declines 3%, influenced by industry decrease in registered vehicles 100 FY2007 FY2008 25
Slide 26: North America
NORTH AMERICA (000) Full Year Sales Volume 396 406 (2%) 400 Canada, other Canada, other 111 5% 116 300 U.S. industry down 17%, Mazda sales down 5% U.S. downshift to smaller USA USA cars increased Mazda3 and 200 Mazda5 volume 295 280 New Mazda6 on track (5%) Weakening industry in Canada 100 Maintain
Slide 27: Europe
EUROPE (000) Full Year Sales Volume 370 400 13% 327 350 300 250 New Mazda2, CX-7 and Mazda3 continue to 200 contribute to growth Minimize the impact of 150 industry decline in western Europe 100 Russia drives growth FY2007 FY2008 27
Slide 28: China
CHINA (000) Full Year Sales Volume 150 130 29% 101 100 Sales volume increases 29% from the prior year aided by 50 full product lineup Sales target is revised due to increasing competition Focus to reinforce brand 0 and two-channel sales network FY2007 FY2008 28
Slide 29: Other Markets
OTHER MARKETS (000) Full Year Sales Volume 300 262 273 (4%) 250 200 Down 4% due to volume declines in Taiwan and Venezuela 150 Australia maintains last year level 100 FY2007 FY2008 29
Slide 30: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 Full Year Compared With FY2007 Full Year (Billion yen) Vol & Mix 200 + 27.0 Exchange FY2007 162.1 CR Material Improvement 150 etc. + 47.0 (Deterioration) Product Marketing Enhancement FY2008 Expense (78.0) Others 90.0 100 + 0.9 (19.0) (47.0) (3.0) 50 YOY Change (72.1)
Slide 31: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 Full Year Compared With FY2007 Full Year (Billion yen) 〔Factor for Increase〕 US Dollar (36.0) - Higher sales in Europe Euro (11.0) 〔Factor for Decrease〕 Other (31.0) - Wholesales decline in the 2nd half Vol & Mix 200 - Lower sales in Japan and China + 27.0 Exchange - L
Slide 32: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 Full Year Compared With FY2007 Full Year (Billion yen) Product Enhancement (18.5) Regulations (0.5) Vol & Mix Cost Innovation initiative 200 + 27.0 Exchange 1H: 17.6, 2H: 29.4 FY2007 More material price 162.1 hikes than prior year CR Material Improvement 150 etc. + 47.
Slide 33: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 Full Year Compared With FY2007 Full Year (Billion yen) Vol & Mix Higher cost due 200 + 27.0 Exchange to expansion in FY2007 Europe 162.1 CR Material Improvement 150 etc. + 47.0 (Deterioration) Product Marketing Enhancement FY2008 Expense (78.0) Others 90.0 100 + 0.9 (1
Slide 34: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 Full Year Compared With FY2007 Full Year (Billion yen) Performance improvement 52.9 Vol & Mix Impact of external factors (125.0) 200 27.0 Exchange FY2007 Total (72.1) 162.1 CR Material Improvement 150 47.0 etc. (Deterioration) Product Enhancement Marketing (78.0) Expen
Slide 35: In Summary
IN SUMMARY 35
Slide 36: Concluding Comments
CONCLUDING COMMENTS Operating profit for the first half is ¥60.7 billion, down 17% from last year but exceeding the initial forecast. Profit declined because of the impact from foreign exchange and material price hikes partially offset by improvements in volume and mix Full year operating profit for
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Slide 38: Appendix
APPENDIX 38
Slide 39: FY2008 2nd Quarter Financial Metrics
FY2008 2nd QUARTER FINANCIAL METRICS (Billion yen) 2nd Quarter Change FY2008 FY2007 Amount Pct. Revenue 803.7 841.9 (38.2) (5) % Operating profit 32.4 40.8 (8.4) (20) % Ordinary profit 25.6 36.4 (10.8) (29) % Profit before tax 24.2 34.9 (10.7) (31) % Net income 14.5 26.6 (12.1) (45) % Operating ROS
Slide 40: Key Data
KEY DATA 2nd Quarter FY2008 FY2007 Change Global retail volume (000) 343 336 2 % Exchange rate Yen / U.S. Dollar 108 118 ¥ (10) Yen / Euro 162 162 ¥ 0 40
Slide 41: Key Data
KEY DATA 2nd Quarter FY2008 FY2007 Change Global Retail Volume (000) Japan 69 66 3 North America 91 105 (14) Europe 86 75 11 China 30 25 5 Other 67 65 2 Total 343 336 7 Consolidated Wholesales (000) Japan 65 67 (2) North America 105 88 17 Europe 89 72 17 China 3 0 3 Other 68 68 0 Total 330 295 35 41
Slide 42: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 2nd Quarter Compared With FY2007 2nd Quarter (Billion yen) Vol & Mix + 18.8 Exchange CR Material + 8.2 etc Product 50 Improvement Enhancement (Deterioration) (11.0) FY2007 Marketing 40.8 Expense (5.3) Others FY2008 (13.6) 32.4 (2.0) (5.4) (3.5) 20 YOY Change (8.4) 42
Slide 43: Revenue by Region and by Segment
REVENUE BY REGION AND BY SEGMENT FY2008 First Half Compared With FY2007 First Half By Region By Segment 1,656.2 1,575.5 16,562 15,755 (Billion yen) (5%) (5%) 164.6 (38%) (10%) Other 242.0 1,500 147.9 151.0 Other 141.8 151.0 400.8 5% Europe Parts 422.0 7% 1,000 (7%) 483.7 North 448.2 America Vehicle
Slide 44: Key Data
KEY DATA FY2008 (Billion yen) 1st Half 2nd Half Full Year Revenue 1,575.5 1,424.5 3,000.0 Operating profit 60.7 29.3 90.0 Ordinary profit 48.5 41.5 90.0 Profit before tax 46.8 36.2 83.0 Net income 29.5 20.5 50.0 Operating ROS 3.9 % 2.1 % 3.0 % EPS(Yen/Share） 21.0 14.5 35.5 44
Slide 45: Operating Profit Change
OPERATING PROFIT CHANGE FY2008 Full Year Compared with FY2008 April Pub (Billion yen) Apr Pub 120 115.0 Vol & Mix Improvement Exchange (Deterioration) Product Enhancement CR Material 100 Oct Pub 0.0 0.0 0.0 etc Marketing Expense 90.0 (19.0) Others + 2.0 + 1.0 (9.0) 80 Change from April (25.0) 45
Slide 46: Key Data
KEY DATA FY2008 Change from April Pub 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Global Retail Volume (000) Japan 123 124 247 (1) (9) (10) North America 200 196 396 3 (7) (4) Europe 179 191 370 0 10 10 China 63 67 130 (22) (28) (50) Other 136 126 262 (9) (12) (21) Total 701 704 1,405 (2
Slide 47: Key Data
KEY DATA FY2008 Change from April Pub 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Consolidated Wholesales (000) Japan 121 125 246 (5) (9) (14) North America 207 199 406 25 (12) 13 Europe 172 180 352 11 (9) 2 China 10 8 18 (5) (6) (11) Other 138 120 258 6 (6) 0 Total 648 632 1,280 32 (42)
Slide 48: Key Data
KEY DATA FY2008 Change from FY2007 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Consolidated Wholesales (000) Japan 121 125 246 (3) (8) (11) North America 207 199 406 22 (2) 20 Europe 172 180 352 32 (3) 29 China 10 8 18 10 1 11 Other 138 120 258 12 (21) (9) Total 648 632 1,280 73 (33) 40
Slide 49: 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