Mazda Motor Corp. · TSE:7261
Mazda Motor — H1 FY2007 Earnings Presentation
40 slides from Mazda Motor's earnings presentation, Nov 2, 2007
Slide 1: FY2007 First Half Results & Full Year Projections
FY2007 FIRST HALF RESULTS & FULL YEAR PROJECTIONS MAZDA MOTOR CORPORATION November 2, 2007 1
Slide 2: Outline
OUTLINE Overview FY2007 First Half Results FY2007 Full Year Projection In Summary 2
Slide 3: Overview
OVERVIEW 3
Slide 4: FY2007 First Half Highlights
FY2007 FIRST HALF HIGHLIGHTS Operating Profit Up 5% to ¥73.1 Billion Revenues Up 9% Achieved Improved Profits at All Levels Inventory Optimization Completed Introduced the First Model of Second Generation Zoom-Zoom Products, New Demio/Mazda2 Capacity Enhancement on Track Resume Interim Dividend 4
Slide 5: FY2007 Full Year Highlights
FY2007 FULL YEAR HIGHLIGHTS Keep Full Year Projections Unchanged Introduce the New Atenza/Mazda6 Expand Sales to Other Markets Continue to Increase Investment in Product Development 5
Slide 6: FY2007 First Half Results
FY2007 FIRST HALF RESULTS 6
Slide 7: FY2007 First Half Financial Metrics
FY2007 FIRST HALF FINANCIAL METRICS (Billion yen) First Half Change FY2007 FY2006 Amount Pct. Revenues 1,656.2 1,521.4 134.8 9 % Operating Profit 73.1 69.8 3.3 5 % Ordinary Profit 57.6 56.6 1.0 2 % Profit Before Tax 54.3 52.4 1.9 4 % Net Income 29.1 27.2 1.9 7 % Operating ROS 4.4 % 4.6 % (0.2) Pts -
Slide 8: Cash Flow & Net Debt
CASH FLOW & NET DEBT FY2007 FY2006 (Billion yen) 1st Half Full Year Change Cash Flow - Operating C/F 40.3 116.4 - - Investment C/F (48.8) (95.4) - - Free C/F (8.5) 21.0 - Net Debt 287.5 232.2 (55.3) Net Debt-to-Equity 58 % 49 % (9) Pts 8
Slide 9: Key Data
KEY DATA First Half FY2007 FY2006 Change Global Retail Volume (000) 659 654 1 % Excl. Volum e Produced in Hainan 659 615 7 % Exchange Rates Yen / U.S. Dollar 119 115 ¥ 4 Yen / Euro 162 146 ¥ 16 9
Slide 10: Domestic & Overseas Revenue Changes
DOMESTIC & OVERSEAS REVENUE CHANGES FY2007 First Half Compared With FY2006 First Half 20% 15% Vol. & Mix 3 % 15% Exchange 6 % 9% 10% 5% 0% Total Domestic Overseas (5)% (6)% (10)% (Billion yen) FY07 1,656.2 415.1 1,241.1 FY06 1,521.4 441.9 1,079.5 10
Slide 11: Japan
JAPAN First Half FY2007 FY2006 Change Retail Volume (000)* 123 131 (6) % Introduced New Demio * Excluding volume sold under Ford Brand 11
Slide 12: North America
NORTH AMERICA First Half Retail Volume (000) FY2007 FY2006 Change United States 149 142 5 % Canada & Other * 64 57 12 % North America Total 213 199 7 % Mazda3 and CX-7 Led the Growth * Including Mexico and Puerto Rico 12
Slide 13: Europe
EUROPE First Half FY2007 FY2006 Change Retail Volume (000)* 153 153 0 % Introduced CX-7 and New Mazda2 ＊Including Turkey 13
Slide 14: China
CHINA First Half FY2007 FY2006 Change Retail Volume (000) 41 62 (33) % Excl. Volum e Produced in Hainan 41 23 78 % Added 1.6L Model to Mazda3 14
Slide 15: Other Markets
OTHER MARKETS First Half FY2007 FY2006 Change Retail Volume (000)* 129 109 18 % Hit Record Sales in 4 Countries 15
Slide 16: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 First Half Compared with FY2006 First Half (Billion yen) [Factors for Increase] - Higher volume in Other Markets 30 [Factors for Decrease] 24.7 25 - Higher incentive spend in North America - Dealer inventory optimization in USA and Europe 20 15 10 6.6 3.3 5 0 (5) (2.8
Slide 17: Dealer Inventory Optimization – US & Europe
DEALER INVENTORY OPTIMIZATION – US & EUROPE (000) 20 Thousand Units Inventory Reduction 150 Accomplished 144 20: 129 Reduction 117 7: 62 Seasonality 100 Europe 58 56 50 82 US 71 61 0 US Spec. 07/03 E 07/06 E 07/09 E 17
Slide 18: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 First Half Compared with FY2006 First Half (Billion yen) US Dollar 4.4 30 Euro 8.8 24.7 Other 11.5 25 20 15 10 6.6 3.3 5 0 (5) (2.8) (1.1) (4.8) (10) FY07 73.1 (15) FY06 69.8 (20) (19.3) Total Vol&Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 18
Slide 19: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 First Half Compared with FY2006 First Half (Billion yen) Product upgrades (2.7) 30 Regulations (2.1) 24.7 25 20 Net of raw material 15 price increase 10 6.6 3.3 5 0 (5) (2.8) (1.1) (4.8) (10) FY07 73.1 (15) FY06 69.8 (20) (19.3) Total Vol&Mix Exch. Product CR Mktg. Ot
Slide 20: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 First Half Compared with FY2006 First Half (Billion yen) 30 Primarily higher R&D cost 24.7 and depreciation 25 20 15 10 6.6 3.3 5 0 (5) (2.8) (1.1) (4.8) (10) FY07 73.1 (15) FY06 69.8 (20) (19.3) Total Vol&Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 20
Slide 21: FY2007 Projections
FY2007 PROJECTIONS 21
Slide 22: FY2007 Financial Metrics
FY2007 FINANCIAL METRICS (Billion yen) Full Year Change FY2007 FY2006 Amount Pct. Revenues 3,320.0 3,247.5 72.5 2 % Operating Profit 160.0 158.5 1.5 1 % Ordinary Profit 140.0 127.8 12.2 10 % Profit Before Tax 130.0 118.5 11.5 10 % Net Income 85.0 73.7 11.3 15 % Operating ROS 4.8 % 4.9 % (0.1) Pts -
Slide 23: Key Data: Capital Spending, Depreciation, R&D
KEY DATA (Billion yen) New product launches and personnel increase 120.0 120 Higher investment for 107.6 domestic plant 100 94.0 capacity increase, engine capacity increase and new 79.6 products 80 Full 65.0 60 47.0 40 57.5 20 50.5 Half 32.4 35.3 32.7 22.3 0 FY06 FY07 FY06 FY07 FY06 FY07 Capital Spe
Slide 24: Key Data
KEY DATA Full Year FY2007 FY2006 Change Global Retail Volume (000) 1,360 1,302 4 % Exchange Rates Yen / U.S. Dollar 115 117 ¥ (2) Yen / Euro 159 150 ¥ 9 24
Slide 25: Japan
JAPAN Full Year FY2007 FY2006 Change Retail Volume (000) 252 261 (3) % Unveiled New Atenza Euro Spec. 25
Slide 26: North America
NORTH AMERICA Full Year Retail Volume (000) FY2007 FY2006 Change United States 296 281 5 % Canada & Other * 111 99 12 % North America Total 407 380 7 % Mazda3 Keeps Sales Momentum * Including Mexico and Puerto Rico 26
Slide 27: Europe
EUROPE Full Year FY2007 FY2006 Change Retail Volume (000) * 321 304 6 % Introduce New Mazda6 ＊Including Turkey 27
Slide 28: China
CHINA Full Year FY2007 FY2006 Change Retail Volume (000) 105 129 (19) % Excl. Volum e Produced in Hainan 105 53 98 % Mazda2 Production Start European Model Ｅｕｒｏｐｅａｎ European Ｍｏｄｅｌ Model 28
Slide 29: Other Markets
OTHER MARKETS Full Year FY2007 FY2006 Change Retail Volume (000) * 275 228 21 % Introduce CX-9 and Mazda2 in Australia US Spec. * Excluding Turkey 29
Slide 30: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 Compared With FY2006 (Billion yen) [Factors for Increase] - Higher sales volume 18.9 with Mazda2, CX-7 20 16.1 and CX-9 9.0 [Factors for Decrease] 10 - Realize an appropriate inventory level in USA 1.5 and Europe 0 (3.9) (10) FY07 160.0 (13.3) (20) FY06 158.5 (30) (25
Slide 31: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 Compared With FY2006 (Billion yen) US Dollar (7.7) 18.9 Euro 11.1 20 16.1 Other 15.5 9.0 10 1.5 0 (3.9) (10) FY07 160.0 (13.3) (20) FY06 158.5 (30) (25.3) Total Vol&Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 31
Slide 32: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 Compared With FY2006 (Billion yen) Cost reductions net of raw material price 20 18.9 increase 16.1 9.0 10 1.5 0 (3.9) (10) FY07 160.0 (13.3) (20) FY06 158.5 Product upgrades (10.2) (30) Regulations (3.1) (25.3) Total Vol&Mix Exch. Product CR Mktg. Other Oper. Enhanc.
Slide 33: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 Compared With FY2006 (Billion yen) 20 18.8 16.1 9.0 10 1.5 0 (3.9) (10) FY07 160.0 (13.3) (20) FY06 158.5 Primarily higher R&D cost and depreciation (30) (25.3) Total Vol&Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 33
Slide 34: In Summary
IN SUMMARY 34
Slide 35: In Summary
IN SUMMARY First Half Operating Profit Up 5% to ¥73.1 Billion Achieved Improved Profits at All Levels Inventory Optimization Completed Continue Introduction of Second Generation Zoom-Zoom Products Unchanged Full Year Projections Successful Start of Mazda Advancement Plan 35
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Slide 37: Appendix
APPENDIX 37
Slide 38: Key Data
KEY DATA First Half Better/(Worse) FY2007 Apr. Pub FY2006 Consol. Wholesales (000) Japan 124 (4) (10) North America* 185 8 (2) Europe 140 8 4 Other Markets 126 13 23 Total 575 25 15 Global Retail Volume (000) Japan 123 (3) (8) North America* 213 (5) 14 Europe 153 (2) 0 China 41 (2) (21) Other Market
Slide 39: Key Data
KEY DATA Full Year Better/(Worse) FY2007 Apr. Pub FY2006 Consolidated Wholesales (000) Japan 251 (14) (13) North America* 383 4 (19) Europe 316 0 19 Other Markets 260 20 46 Total 1,210 10 33 Global Retail Volume (000) Japan 252 (10) (9) North America* 407 4 27 Europe 321 0 17 China 105 0 (24) Other
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