Mazda Motor Corp. · TSE:7261
Mazda Motor — H1 FY March 2013 Earnings Presentation
40 slides from Mazda Motor's earnings presentation, Oct 31, 2012
Slide 1: Fiscal Year End March 2013 First Half Financial Results
FISCAL YEAR END MARCH 2013 FIRST HALF FINANCIAL RESULTS New Mazda6 (Atenza) Mazda Motor Corporation October 31, 2012 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights Fiscal Year March 2013 First Half Results Fiscal Year March 2013 Full Year Forecast Sales Initiatives in the Second Half of the Fiscal Year Structural Reform Plan Update Summary Wrap-up 2
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: Highlights (1) - First Half Results
HIGHLIGHTS (1) - FIRST HALF RESULTS Revenue is ¥1,023.5 billion. Operating profit is ¥11.5 billion. Net profit is ¥5.7 billion. Achieved profitability in all profit categories, exceeding the April forecast. The new CX-5 largely contributed to the profitability in operating profit. Global sales volum
Slide 5: Highlights (2) – Full Year Forecast
HIGHLIGHTS (2) – FULL YEAR FORECAST Increase the new CX-5 sales. Introduce the new Mazda6/Atenza, the 2nd vehicle fully- equipped with SKYACTIV TECHNOLOGY. Introduce the new CX-9. Global sales volume of 1,255,000 is forecasted. Full year forecast for operating profit is revised to ¥25 billion by inc
Slide 6: Fiscal Year End March 2013 First Half Results
FISCAL YEAR END MARCH 2013 FIRST HALF RESULTS 6
Slide 7: FY End March 2013 Financial Metrics
FY END MARCH 2013 FINANCIAL METRICS First Half FY End March 2013 Change from (Billion yen) 1st Quarter 2nd Quarter 1st Half Prior Year April Forecast Revenue 506.6 516.9 1,023.5 64.3 (16.5) Operating profit 1.8 9.7 11.5 33.1 1.5 Ordinary profit (8.9) 9.3 0.4 31.0 2.4 Profit before tax (9.7) 17.0 7.3
Slide 8: Key Data
KEY DATA First Half FY End March 2013 Change from 1st Quarter 2nd Quarter 1st Half Prior Year April Forecast Global sales volume (000) Japan 51 59 110 15 (7) North America 90 92 182 0 (11) USA 62 65 127 0 (9) Europe 44 41 85 (6) (10) China 46 44 90 (17) (32) Other Markets 69 77 146 17 3 Total 300 31
Slide 9: Japan
JAPAN Sales Volume in the First Half (000) 16% 110 Sales of 110,000 100 95 units, are up 16% YOY. The success of the new CX-5 led the sales 50 increase. Diesel engine models continued to receive 0 high appraisals. FY March 2012 FY March 2013 9
Slide 10: North America
NORTH AMERICA Sales Volume in the First Half (000) Sales were 182,000 200 182 182 units, almost the same as last year. (0)% Canada & Canada & USA: Sales were 127,000 others 55 others 55 units. - The new CX-5 and Mazda3 100 SKYACTIV largely USA 127 USA 127 contributed to the increase. - Continued act
Slide 11: Europe
EUROPE Sales Volume in the First Half (000) 100 91 Total sales of 85,000 units. 85 (6)% The success of the new CX-5 continues. Russia: Sales of 23,000 Germany Germany 50 & others & others units are up 20% YOY and 72 62 share of 1.5%, is up 0.1 %. Russia 23 Russia 19 0 FY March 2012 FY March 2013 11
Slide 12: China
CHINA Sales Volume in the First Half (000) Sales were 90,000 107 units, down 15% YOY. 100 90 Introduced the new CX-5 (15)% with SKYACTIV technology in the second quarter. Sales of Mazda3 were about 50 the same as last year thanks to the new model, introduced last year. 0 FY March 2012 FY March 2013
Slide 13: Other Markets
OTHER MARKETS Sales Volume in the First Half (000) 146 Sales of 146,000 units, are 150 12% 129 up 12% YOY. Others 46 Australia: Achieved a record Others 53 high sales and share. 100 ASEAN: Sales of 49,000 Australia 51 units, are up 54% YOY. Achieved record high sales Australia 50 44 and share in Tha
Slide 14: Operating Profit Change
OPERATING PROFIT CHANGE FY End March 2013 1st Half vs. FY End March 2012 1st Half Improvement driven FY March (Billion yen) 2013 by the new CX-5 15 Other Cost Marketing + 6.5 11.5 Improvement Expense +17.1 Vol. & Mix +23.5 Exchange (2.9) 0 (11.1) -15 US Dollar (0.2) Improvement Euro (6.5) (Deteriora
Slide 15: Fiscal Year End March 2013 Full Year Forecast
FISCAL YEAR END MARCH 2013 FULL YEAR FORECAST 15
Slide 16: FY End March 2013 Financial Metrics
FY END MARCH 2013 FINANCIAL METRICS FY End March 2013 Full Year Change from Prior from April (Billion yen) 1st Half 2nd Half Full Year Year Forecast Revenue 1,023.5 1,146.5 2,170.0 136.9 (30.0) Operating profit 11.5 13.5 25.0 63.7 (5.0) Ordinary profit 0.4 14.6 15.0 51.8 0.0 Profit before tax 7.3 9.
Slide 17: Key Data
KEY DATA FY End March 2013 Full Year Change from Prior from April 1st Half 2nd Half Full Year Year Forecast Global sales volume (000) Japan 110 104 214 8 (11) North America 182 201 383 11 (7) USA 127 153 280 12 (5) Europe 85 97 182 (1) (3) China 90 80 170 (53) (85) Other Markets 146 160 306 43 21 To
Slide 18: Operating Profit Change
OPERATING PROFIT CHANGE FY End March 2013 Full Year vs. FY End March 2012 Full Year (Billion yen) Improvement driven by the new CX-5 FY March Cost 2013 Improvement Marketing Other + 36.7 Expense + 6.3 25.0 25 (7.0) Vol. & Mix Exchange + 37.6 0 (9.9) -25 US Dollar +3.3 Improvement Euro (9.5) (Deterio
Slide 19: Operating Profit Change
OPERATING PROFIT CHANGE FY End March 2013 Full Year October Forecast vs. April Forecast Improvement (Billion yen) (Deterioration) Mainly volume reduction in China US Dollar (0.9) Euro (5.9) Other (6.3) April Forecast October 30.0 Vol. & Mix Mainly commodities Forecast traded in the market Other Exch
Slide 20: Sales Initiatives in the Second Half (1)
SALES INITIATIVES IN THE SECOND HALF OF THE FISCAL YEAR (1) Japan - Ensure successful launch of the new Atenza. - Maintain sales momentum of the new CX-5. North America - Introduce 2.5L model of the new CX-5. - Introduce the new CX-9. - Successful launch of the new Mazda6. - Continue and reinforce b
Slide 21: Sales Initiatives in the Second Half (2)
SALES INITIATIVES IN THE SECOND HALF OF THE FISCAL YEAR (2) China - Ensure successful launch of the new CX-9. - Strengthen efforts to promote sales, focusing mainly on Mazda3 and Mazda6. Other Markets - Australia: Expand sales with the introduction of the new CX-9 and the new Mazda6, along with the
Slide 22: Structural Reform Plan Update (1)
STRUCTURAL REFORM PLAN UPDATE (1) Business Innovation through SKYACTIV TECHNOLOGY - New CX-5 receives high appraisals for its design, driving performance and fuel economy, and is in high demand in every market it is sold around the world. - The strong product marketability and fair price contributed
Slide 23: Structural Reform Plan Update (2)
STRUCTURAL REFORM PLAN UPDATE (2) Further Cost Improvement through Monotsukuri Innovation - Cost improvement of new generation products, starting with CX-5, is proceeding according to the plan. - In addition to the improvement in product marketability, steadily making progress in the vehicle develop
Slide 24: Structural Reform Plan Update (3)
STRUCTURAL REFORM PLAN UPDATE (3) Promote global alliances - Our alliance strategy is unchanged as “we pursue optimization of mutual benefits by product/ technology/ region.” - Discussing with Fiat on OEM supply of the sport car based on MX-5 (Roadster) to Fiat. - Restructuring in China was approved
Slide 25: China Status
CHINA STATUS Sales - Dealers are conducting business as usual since October. - Recovery in showroom traffic and orders has been slow. Production - Operations at the Nanjing plant are reduced to 1 shift (day shift) from the second half of October. Impact on This Fiscal Year and Next Steps - Sales ris
Slide 26: Summary
SUMMARY ＜1st Half Results＞ Achieved profitability in all categories, exceeding the April forecast. SKYACTIV products earned high acclaim globally. The new CX-5 significantly contributed to the sales and profitability. ＜Full Year Forecast＞ Full year operating profit is projected at ¥25 billion. Ordin
Slide 27: Wrap-up
WRAP-UP Achieved profitability in all profit categories that exceed the April forecast in the 1st Half, which is a clear step forward to turn around to profitability in the full year. The new CX-5, the first product that is fully equipped with SKYACTIV TECHNOLOGY significantly contributed to the pro
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Slide 29: Appendix
APPENDIX 29
Slide 30: Non-Operating Profit/Loss and Extraordinary Profit/Loss
NON-OPERATING PROFIT/LOSS AND EXTRAORDINARY PROFIT/LOSS (Billion yen) FY End March 2013 1st Half Main items Exchange gain/loss (7.6) (incl. valuation loss of foreign currency receivables) Operating profit 11.5 Equity method profit 2.1 Non-operating Interest paid and received (5.8) profit/loss (11.1)
Slide 31: Cash Flow and Net Debt
CASH FLOW AND NET DEBT FY End March 2013 Changed from (Billion yen) 1st Quarter 2nd Quarter 1st Half FY end Mar 2012 Cash Flow - From operating activities (14.3) 2.6 (11.7) - - From Investing activities (6.0) (1.9) (7.9) - - Free Cash Flow (20.3) 0.7 (19.6) - Cash and Cash Equivalents 439.4 420.4 42
Slide 32: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA (Billion yen) 614.8 600 551.1 86.0 506.6 516.9 74.8 459.1 119.8 89.4 100.3 408.1 93.7 63.1 Other 69.1 67.8 70.8 69.9 Europe 63.8 144.8 185.8 300 152.2 141.3 143.5 North 94.3 America 237.7 223.1 Japan 180.9 182.6 197.2 204.5 0 1Q 2Q 3Q 4Q 1Q 2Q FY End March 2012 FY End Marc
Slide 33: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 614.8 600 551.1 59.3 506.6 516.9 56.5 50.7 459.1 55.0 48.7 52.4 408.1 54.8 47.6 46.5 Other 58.4 49.1 Parts 47.9 300 504.7 442.1 420.6 Vehicle/ 405.1 355.2 Parts for 301.8 overseas production 0 1Q 2Q 3Q 4Q 1Q 2Q FY End March 2012 FY End March 2013 33
Slide 34: Revenue Change
REVENUE CHANGE FY End March 2013 1st Half vs. FY End March 2012 1st Half (Billion yen) FY March 2013 1,023.5 FY March 2012 959.2 Japan 3% Overseas 7% 10% 10% 7% 0% (3)% Total Vol. & Mix Exchange (10)% 34
Slide 35: Revenue Change
REVENUE CHANGE FY End March 2013 2nd Quarter vs. FY End March 2012 2nd Quarter (Billion yen) FY March 2013 516.9 FY March 2012 551.1 Japan (1)% Overseas (4)% 0% (1)% Total Vol. & Mix Exchange (5)% (6)% (10)% 35
Slide 36: Operating Profit Change
OPERATING PROFIT CHANGE FY End March 2013 2nd Quarter vs. FY End March 2012 2nd Quarter (Billion yen) FY March 2013 Other 2.9 9.7 10 Marketing Expense Cost 1.4 Improvement 7.8 5 FY March 2012 1.5 Vol. & Mix Exchange 0 (0.7) Improvement (3.2) (Deterioration) -5 Change from prior year + 8.2 36
Slide 37: Key Data
KEY DATA First Half FY March 2013 Change from 1st 2nd Prior April Quarter Quarter 1st Half Year Forecast Consolidated wholesales (000) Japan 54 61 115 6 (8) North America 89 86 175 23 (1) Europe 32 36 68 (6) (4) China 2 0 2 (6) (5) Other Markets 70 72 142 15 3 Total 247 255 502 32 (15) 37
Slide 38: Key Data
KEY DATA Change from April FY March 2013 Change from Prior Year Forecast 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Full Year Global sales volume (000) Japan 110 104 214 15 (7) 8 (11) North America 182 201 383 0 11 11 (7) Europe 85 97 182 (6) 5 (1) (3) China 90 80 170 (17) (36) (53) (85
Slide 39: Key Data
KEY DATA (Billion yen) 100 Full 91.7 94.0 90.0 Year Full 78.0 Year Full 68.8 Year 63.0 50 1st 47.3 Half 42.7 1st 34.8 1st 31.3 33.9 Half 29.8 Half 0 FYE 2012 2013 2012 2013 2012 2013 March Capital Depreciation R&D cost Spending 39
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