Mazda Motor Corp. · TSE:7261
Mazda Motor — H1 FY2012 Earnings Presentation
36 slides from Mazda Motor's earnings presentation, Nov 2, 2011
Slide 1: Fiscal Year Ending March 2012 First Half Financial Results
FISCAL YEAR ENDING MARCH 2012 FIRST HALF FINANCIAL RESULTS New Mazda CX-5 (European specifications) Mazda Motor Corporation November 2, 2011 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights Fiscal Year Ending March 2012 First Half Results Fiscal Year Ending March 2012 Full Year Forecast In Summary Question & Answer Session Future Actions 2
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: FY Ending March 2012 First Half Highlights
FY ENDING MARCH 2012 FIRST HALF HIGHLIGHTS In the 2nd quarter, posted positive operating profit of ¥1.5 billion, offsetting the negative impact from appreciated yen to the main currencies and material price hike, mainly by cost improvement In 1st half, revenue was ¥959.2 billion, operating loss, ¥21
Slide 5: FY Ending March 2012 Full Year Forecast Highlights
FY ENDING MARCH 2012 FULL YEAR FORECAST HIGHLIGHTS In the unclear environment caused by the strengthening yen, European financial uncertainty and flooding in Thailand, full year operating profit forecast is to achieve break even and net loss of ¥19 billion 2nd half forecast is positive in all profit
Slide 6: Fiscal Year Ending March 2012 First Half Results
FISCAL YEAR ENDING MARCH 2012 FIRST HALF RESULTS 6
Slide 7: FY Ending March 2012 Financial Metrics
FY ENDING MARCH 2012 FINANCIAL METRICS First Half FY Ending March 2012 Change from (Billion yen) 1st Quarter 2nd Quarter 1st Half Prior Year June Forecast Revenue 408.1 551.1 959.2 (198.5) (0.8) Operating profit (23.1) 1.5 (21.6) (33.8) (1.6) Ordinary profit (25.8) (4.8) (30.6) (51.4) (5.6) Profit b
Slide 8: Cash Flow and Net Debt
CASH FLOW AND NET DEBT FY Ending March 2012 (Billion yen) 1st Quarter 2nd Quarter 1st Half Cash Flow - Operating C/F (29.5) 8.5 (21.0) - Investing C/F (16.6) (13.8) (30.4) - Free C/F (46.1) (5.3) (51.4) Cash and Cash Equivalents 314.2 349.4 349.4 Net Debt (413.7) (423.2) (423.2) Net Debt-to- equity
Slide 9: Key Data
KEY DATA First Half FY Ending March 2012 Change from 2Q vs 1Q 1st Quarter 2nd Quarter 1st Half Prior Year Change Global sales volume (000) Japan 35 60 95 (30) 25 North America 86 96 182 5 10 USA 58 69 127 8 11 Europe 44 47 91 (17) 3 China 53 54 107 (5) 1 Other Markets 63 66 129 (8) 3 Total 281 323 6
Slide 10: Japan
JAPAN 1st Half Sales Volume / Share (000) (%) 125 (24)% 10 100 95 5 50 4.9 4.9 New Mazda Demio 13-SKYACTIV 0 0 Retail volume was 95,000 units, Full Year Sales Volume keeping 4.9% share, same level as last year 206 2% 209 200 From July, fully introduced the new Demio/Mazda2 equipped with SKYACTIV-G w
Slide 11: North America
NORTH AMERICA 1st Half Sales Volume / US Share (000) (%) 200 177 3% 182 4 Canada, others Canada, others 58 55 100 2 2.0 2.0 New Mazda3 US 119 US 127 In US, due to the good sales 0 0 performance of Mazda2, CX-7 and others, achieved the record share of 2.0%. Full Year Sales Volume Mazda3 achieved 5.8%
Slide 12: Europe
EUROPE 1st Half Sales Volume / Share (000) (%) 108 (16)% 100 91 2 1.2 1.0 50 Mazda5 0 0 In western Europe, sales volume decreased year-over-year, but kept Full Year Sales Volume the policy of brand value 212 (4)% improvement 204 200 Mazda2 and Mazda3 in Germany received 1st place awards in the J.D.
Slide 13: China
CHINA 1st Half Sales Volume / Share (000) (%) 112 (4)% 107 100 2 1.3 1.2 50 New Mazda3 Xingcheng 0 0 Sales volume was 107,000 units, Full Year Sales Volume led by Mazda3 10% 260 Supporting the sales expansion of 236 Mazda3, local production of the new Mazda3 started in Nanjing 200 plant and sales co
Slide 14: Other Markets
OTHER MARKETS 1st Half Sales Volume / Australia Share (000) (%) 137 (6)% 129 20 Australia, others Australia, others 100 110 97 8.4 8.6 10 New BT-50 ASEAN 27 ASEAN 32 0 0 Sales volume for other markets was 129,000 units Full Year Sales Volume The share in Australia was record high of 8.6%, up 0.2 poi
Slide 15: Operating Profit Change
OPERATING PROFIT CHANGE FY Ending March 2012 1st Half Compared with FY Ended March 2011 1st Half (Billion yen) FY Ended Improvement 20.0 March 2011 (Deterioration) 12.2 Vol. & Mix 0.0 US Dollar (7.5) Euro (0.5) Other +1.3 Other Cost (20.0) Improvement Marketing + 8.9 Exchange Expense + 5.4 FY Ending
Slide 16: Fiscal Year Ending March 2012 Full Year Forecast
FISCAL YEAR ENDING MARCH 2012 FULL YEAR FORECAST 16
Slide 17: FY Ending March 2012 Financial Metrics
FY ENDING MARCH 2012 FINANCIAL METRICS FY Ending March 2012 Full Year Change from from June (Billion yen) 1st Half 2nd Half Full Year Prior Year Forecast Revenue 959.2 1,200.8 2,160.0 (165.7) (30.0) Operating profit (21.6) 21.6 0.0 (23.8) (20.0) Ordinary profit (30.6) 28.6 (2.0) (38.9) (17.0) Profit
Slide 18: Key Data
KEY DATA FY Ending March 2012 Full Year Change from from June 1st Half 2nd Half Full Year Prior Year Forecast Global sales volume (000) Japan 95 114 209 3 2 North America 182 194 376 34 30 USA 127 140 267 29 27 Europe 91 113 204 (8) 2 China 107 153 260 24 (10) Other Markets 129 132 261 (16) (19) Tot
Slide 19: Market Summary (1)
MARKET SUMMARY (1) Accelerate sales momentum by the introduction of the new Mazd3/Axela and the new CX-5 equipped with SKYACTIV TECHNOLOGY, following the new Demio/Mazda2 Deploy the brand value improvement initiatives globally such as control of incentive levels and improving residual values, in lin
Slide 20: Market Summary (2)
MARKET SUMMARY (2) Initiatives in each market: ・ Europe: Further sales expansion in Russia where our performance is good. Control inventory levels. Focus on successful launch of the new CX-5 with SKYACTIV TECHNOLOGY. Raise awareness of the new SKYACTIV TECHNOLOGY to prepare for sales expansion next
Slide 21: Operating Profit Change
OPERATING PROFIT CHANGE FY Ending March 2012 Full Year Compared with (Billion yen) FY Ended March 2011 Full Year FY Ended Improvement 30.0 March 2011 US Dollar (19.6) (Deterioration) 23.8 Vol. & Mix Euro (5.8) Other (13.7) 15.0 Exchange FY Ending (12.4) March 2012 Other 13.7 (0.0) 0.0 Cost Improveme
Slide 22: Operating Profit Change vs June Forecast
OPERATING PROFIT CHANGE FY Ending March 2012 Full Year Compared with June Forecast (Billion yen) Improvement 30.0 June US Dollar (15.0) (Deterioration) Vol. & Mix Euro Forecast (5.2) 1.8 Exchange 20.0 Other (15.3) 15.0 November Other Forecast 7.3 0.0 0.0 Marketing Cost Expense Improvement 2.3 4.1 (1
Slide 23: In Summary (1)
IN SUMMARY (1) FY ending March 2012 1st Half Result ・ In the 2nd quarter, posted positive operating profit, offsetting the negative impact from appreciated yen to the main currencies and material price hike ・ In the 2nd quarter, global sales volume was 323,000 units, exceeding the 1st quarter substa
Slide 24: In Summary (2)
IN SUMMARY (2) FY ending March 2012 Forecast ・ In the unclear environment caused by the strengthening yen, European financial uncertainty and flooding in Thailand, full year operating profit forecast is to achieve break even and net loss of ¥19 billion ・ 2nd half forecast is positive in all profit l
Slide 25: Future Actions (1)
FUTURE ACTIONS (1) Counter measures for appreciation of the yen in 2nd half onwards 1) Reform the cost structure - Further improvement for variable and fixed cost in the short term - Acceleration of cost improvement for current and new generation carlines by pulling ahead of “Monotsukuri Innovation”
Slide 26: Future Actions (2)
FUTURE ACTIONS (2) Global introduction of carlines with SKYACTIV TECHNOLOGY - SKYACTIV TECHNOLOGY is steadily gaining awareness and high acclaims for its environmental performance - Continue to build on the successful introduction of Demio/Mazda2 in domestic, as the first product equipped with SKYAC
Slide 27: 27
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Slide 28: Appendix
APPENDIX 28
Slide 29: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA (Billion yen) 607.8 600 6,000 578.0 579.7 560.2 551.1 99.1 69.7 73.1 Other 66.8 74.8 Europe 93.1 96.5 112.9 125.2 408.1 93.7 69.1 North 140.3 175.0 300 3,000 America 160.5 148.2 63.8 144.8 94.3 240.2 269.8 237.7 Japan 220.0 235.2 180.9 0 1Q 2Q 3Q 4Q 1Q 2Q FY Ended March 20
Slide 30: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 607.8 600 6,000 578.0 579.7 560.2 66.8 551.1 Other 61.8 67.2 63.5 56.5 54.7 Parts 53.7 55.6 53.3 52.4 408.1 58.4 47.9 3,000 300 Vehicle / Parts for 462.6 456.9 486.3 overseas 443.4 production 442.1 301.8 0 1Q 2Q 3Q 4Q 1Q 2Q FY Ended March 2011 FY March 2012 30
Slide 31: Revenue Change
REVENUE CHANGE FY Ending March 2012 1st Half Compared with FY Ended March 2011 1st Half (Billion yen) FY Ending March 2012 959.2 FY Ended March 2011 1,157.7 Japan (3)% Overseas (12)% 0% (2)% Total Vol. & Mix Exchange (17)% (15)% (20)% 31
Slide 32: Revenue Change
REVENUE CHANGE FY Ending March 2011 2nd Quarter Compared with FY Ended March 2011 2nd Quarter (Billion yen) FY Ending March 2012 551.1 FY Ended March 2011 579.7 Japan (2)% Overseas 0 % 0% (2)% Total Vol. & Mix Exchange (3)% (5)% (5)% 32
Slide 33: Operating Profit Change
OPERATING PROFIT CHANGE FY Ending March 2011 2nd Quarter Compared with (Billion yen) FY Ended March 2011 2nd Quarter 10.0 Improvement FY Ended March 2011 (Deterioration) 5.8 Vol. & Mix 5.0 FY Ending Cost March 2012 Improvement Marketing Other Expense + 3.9 1.5 + 5.8 0.0 Exchange (6.7) (3.7) (5.0) (3
Slide 34: Key Data
KEY DATA FY Ending March 2012 Change from Prior Year 1Q 2Q 1st Half 1Q 2Q 1st Half Global sales volume (000) Japan 35 60 95 (17) (13) (30) North America 86 96 182 (4) 9 5 Europe 44 47 91 (10) (7) (17) China 53 54 107 0 (5) (5) Other Markets 63 66 129 (5) (3) (8) Total 281 323 604 (36) (19) (55) Cons
Slide 35: Key Data: Capital Spending, Depreciation, R&D
KEY DATA (Billion yen) 1,000 100 Full 92.0 91.0 Year 80.0 Full 71.6 70.0 Year 500 50 1st 45.7 47.3 44.7 half Full 1st 36.2 34.8 Year 31.3 half 1st 18.3 half 0 (FYE March) 2011 2012 2011 2012 2011 2012 Capital Spending Depreciation R&D cost 35
Slide 36: 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