Mazda Motor Corp. · TSE:7261

Mazda Motor — H1 FY March 2018 Earnings Presentation

38 slides from Mazda Motor's earnings presentation, November 2017

  1. Slide 1: Fiscal Year March 2018 First Half Financial Results

    FISCAL YEAR MARCH 2018 FIRST HALF FINANCIAL RESULTS

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2018 First Half Results  Fiscal Year March 2018 Full Year Forecast  Progress of Key Initiatives/ Business and Capital Alliance with Toyota Motor Corporation Mazda Motor Corporation 1

  3. Slide 3: Highlights

    HIGHLIGHTS 【First Half Results】  Global sales were up 1% from the prior year to 783,000 units, a new record for the first half  Sales of new CX-5 shifted into high gear with global roll out  Revenue was ¥1 trillion 656.6 billion, operating profit was ¥76.5 billion, and net income was ¥63.3 billio

  4. Slide 4: Fiscal Year March 2018 First Half Results

    FISCAL YEAR MARCH 2018 FIRST HALF RESULTS Mazda Motor Corporation 3

  5. Slide 5: FY March 2018 Global Sales Volume

    FY MARCH 2018 GLOBAL SALES VOLUME First Half FY March FY March Change from (000) 2017 2018 Prior Year Global sales volume Volume YOY(%) Japan 93 96 4 4% North America 224 219 (6) (2)% Europe 134 132 (2) (2)% China 133 149 16 12% Other Markets 191 187 (4) (2)% Total 775 783 8 1% <Breakdown> USA 160 1

  6. Slide 6: Japan

    JAPAN  Sales were 96,000 units, up 4% year on year  Market share was 3.9%, down 0.1 points year on year. Registered vehicle market share was 4.8%, Mazda2 unchanged from the previous year  Sales of new CX-5 were up First Half Sales Volume significantly over the prior year (000) and were on track t

  7. Slide 7: North America

    NORTH AMERICA  Sales were 219,000 units, down 2% year on year  USA: Sales were 151,000 units, down 5% year on year - Fleet sales were the main reason CX-9 for the decrease - Sales of new CX-5 were strong and high-grade models were First Half Sales Volume exceeding targets (000) - Enhanced marketin

  8. Slide 8: Europe

    EUROPE  Sales were 132,000 units, down 2% year on year  Sales of new CX-5 shifted into high gear with launches in various European markets New CX-5 starting from May  Germany: 35,000 units, up 5% First Half Sales Volume year on year (000)  UK: 19,000 units, down 17% (2)% 150 134 132 year on year

  9. Slide 9: China

    CHINA  Sales were 149,000 units, up 12% year on year  Achieved record sales in the first half  Launched in September, sales CX-4 of the new CX-5 are off to a good start First Half Sales Volume  Strong sales of Mazda3, CX-4 (000) and Mazda6 contributed to the 200 growth 149 12% 133 100 0 FY March

  10. Slide 10: Other Markets

    OTHER MARKETS  Sales were 187,000 units, down 2％ year on year  Australia: 59,000 units, down 1％ year on year - Mazda remains the country’s Mazda3 second highest-selling brand - Launched in April, sales of the First Half Sales Volume new CX-5 remain strong (000)  ASEAN: 51,000 units, down 4％ 191 2

  11. Slide 11: FY March 2018 Financial Metrics

    FY MARCH 2018 FINANCIAL METRICS First Half FY March FY March Change from (Billion yen) 2017 2018 Prior Year Amount YOY(%) Revenue 1,546.3 1,656.6 110.3 7% Operating profit 88.3 76.5 (11.8) (13)% Ordinary profit 82.6 96.5 13.9 17% Profit before tax 76.2 87.4 11.2 15% Net income 56.1 63.3 7.2 0 13% Op

  12. Slide 12: FY March 2018 Operating Profit Change

    FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 1st Half vs. FY March 2017 1st Half (Billion yen) Improvement Impact of reduced Includes hike in wholesale volume and raw material (Deterioration) increased marketing prices expenses in US, etc. FY March 2017 Cost 100 Volume & FY March 88.3 Exchang

  13. Slide 13: Fiscal Year March 2018 Full Year Forecast

    FISCAL YEAR MARCH 2018 FULL YEAR FORECAST Mazda Motor Corporation 12

  14. Slide 14: FY March 2018 Global Sales Volume

    FY MARCH 2018 GLOBAL SALES VOLUME FY March 2018 Change from (000) 1st Half 2nd Half Full Year Prior Year Apr. Forecast YOY(%) Volume Global sales volume Japan 96 117 213 5% 0 North America 219 224 443 3% (11) Europe 132 136 267 2% 0 China 149 143 292 0% 11 Other Markets 187 197 384 2% 0 Total 783 81

  15. Slide 15: FY March 2018 Financial Metrics

    FY MARCH 2018 FINANCIAL METRICS FY March 2018 Change from (Billion yen) 1st Half 2nd Half Full Year Prior Year Revenue 1,656.6 1,693.4 3,350.0 135.6 Operating profit 76.5 73.5 150.0 24.3 Ordinary profit 96.5 66.5 163.0 23.5 Profit before tax 87.4 62.6 150.0 21.6 Net income 63.3 36.7 100.0 6.2 Operat

  16. Slide 16: FY March 2018 Operating Profit Change

    FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 Full Year vs. FY March 2017 Full Year (Billion yen) Improvement (Deterioration) Includes hike in Impact of reduced raw material Improvement of 200 wholesale volume and prices quality-related increased marketing costs expenses in US, etc. FY March C

  17. Slide 17: FY March 2018 Operating Profit Change

    FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 Full Year vs. April Forecast (Billion yen) Improvement (Deterioration) Impact of reduced wholesale volume and increased marketing expenses in US, etc. 200 Apr. Nov. Forecast Cost Forecast Exchange Improvement R&D Cost 150.0 Volume & + 35.8 + 0.0 +

  18. Slide 18: Progress of Key Initiatives / Alliance with Toyota Motor Corporation

    PROGRESS OF KEY INITIATIVES/ BUSINESS AND CAPITAL ALLIANCE WITH TOYOTA MOTOR CORPORATION Mazda Motor Corporation 17

  19. Slide 19: Progress of Key Initiatives (1)

    PROGRESS OF KEY INITIATIVES (1)  Announced long-term vision for technology development, “Sustainable Zoom-Zoom 2030” ⁻ Aim to reduce corporate average well-to-wheel CO2 emissions to 50% of 2010 levels by 2030 ⁻ SKYACTIV-X next-generation gasoline engine ⁻ Next-generation SKYACTIV-Vehicle Architectu

  20. Slide 20: Progress of Key Initiatives (2)

    PROGRESS OF KEY INITIATIVES (2)  Premiered models with next-generation design, Mazda KAI CONCEPT and Mazda VISION COUPE Mazda KAI CONCEPT Mazda VISION COUPE  Sales of the new CX-8 in Japan start in December; the model will create a new market for three-row SUVs Mazda Motor Corporation 19

  21. Slide 21: Progress of Key Initiatives (3)

    PROGRESS OF KEY INITIATIVES (3)  Promote sales network enhancement to improve brand value - Through customer care, provide a high-quality customer experience together with top-tier products, technologies and design to encourage customers to stay loyal to the brand  Enhance production flexibility o

  22. Slide 22: Business and Capital Alliance with Toyota Motor Corporation

    BUSINESS AND CAPITAL ALLIANCE WITH TOYOTA MOTOR CORPORATION (ANNOUNCED ON AUG. 4, 2017)  Business alliance 1. Establish a joint venture vehicle manufacturing company in the US ⁃ Begin preparation to start production in 2021 2. Joint development of technology for electric vehicles ⁃ Established a ne

  23. Slide 23: Mazda Motor Corporation

    Mazda Motor Corporation 22

  24. Slide 24: Appendix

    APPENDIX Mazda Motor Corporation 23

  25. Slide 25: Cash Flow and Net Debt

    CASH FLOW AND NET DEBT FY March 2017 FY March 2018 Change from (Billion yen) Full Year 1st Half Prior FY End Cash Flow - From Operating activities 161.1 89.2 - - From Investing activities (63.8) (55.5) - - Free Cash Flow 97.3 33.7 - Cash and Cash Equivalents 526.9 556.7 29.8 Net Debt (35.4) (58.7) 2

  26. Slide 26: Revenue by Region

    REVENUE BY REGION (Billion yen) 900 865.8 854.5 776.2 802.3 802.1 770.1 144.8 148.6 130.4 136.4 Other 125.6 132.7 149.6 177.0 600 Europe 140.6 155.8 154.1 145.4 264.0 North 236.0 291.6 288.3 274.8 281.4 America 300 307.4 Japan 215.1 256.0 239.7 221.6 254.2 0 1Q 2Q 3Q 4Q 1Q 2Q FY March 2017 FY March

  27. Slide 27: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 900 865.8 854.5 776.2 802.3 802.1 770.1 66.4 63.7 Other 58.0 63.2 58.2 67.5 56.1 56.4 Parts 58.5 61.7 57.4 57.4 600 Vehicles / Parts for 685.8 736.2 682.2 723.3 662.8 656.3 300 Overseas Production 0 1Q 2Q 3Q 4Q 1Q 2Q FY March 2017 FY March 2018 Mazda Motor Corporatio

  28. Slide 28: Revenue Change

    REVENUE CHANGE FY March 2018 1st Half vs. FY March 2017 1st Half (Billion yen) 10% FY March 2018 1,656.6 Japan 1% FY March 2017 1,546.3 Overseas 1% 7% 5% 5% 2% 0% Total Volume & Mix Exchange Mazda Motor Corporation 27

  29. Slide 29: Revenue Change

    REVENUE CHANGE FY March 2018 2nd Quarter vs. FY March 2017 2nd Quarter 15% (Billion yen) FY March 2018 854.5 Japan 1% FY March 2017 770.1 Overseas 2% 11% 10% 8% 5% 3% 0% Total Volume & Mix Exchange Mazda Motor Corporation 28

  30. Slide 30: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from Change from (000) 2017 2018 Prior Year Apr. Forecast Global sales volume Volume YOY(%) Japan 203 213 11 5% 0 North America 429 443 14 3% (11) Europe 262 267 6 2% 0 China 292 292 1 0% 11 Other Markets 373 384 9 2%

  31. Slide 31: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Second Quarter FY March FY March Change from (000) 2017 2018 Prior Year Global sales volume Volume YOY(%) Japan 54 55 2 3% North America 111 112 1 1% Europe 68 68 (0) (0)% China 74 78 4 5% Other Markets 93 92 (1) (1)% Total 400 406 6 1% Consolidated wh

  32. Slide 32: FY March 2018 Operating Profit Change

    FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 2nd Quarter vs. FY March 2017 2nd Quarter (Billion yen) Improvement (Deterioration) Exchange 50 Cost + 15.6 Improvement R&D Cost FY March FY March Other 2017 2018 35.9 Volume & Mix (0.2) (0.7) 36.6 (7.0) 25 (7.0) Change from Prior Year 0.7 0 Mazda

  33. Slide 33: Exchange Rates

    EXCHANGE RATES Change from Prior Apr. FY March 2017 FY March 2018 Year Forecast （Yen） 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Full Year Full Year US Dollar 105 112 108 111 108 110 2 2 Euro 118 119 119 126 128 127 8 9 Canadian Dollar 81 84 83 86 86 86 3 3 Australian Dollar 79 84 82 86

  34. Slide 34: Crossover Vehicle Ratio

    CROSSOVER VEHICLE RATIO （000 units） 1,500 Crossover vehicles 34% 39% 12% 28% 27% 21% 1,000 Passenger 500 vehicles, and others - FY March 2012 2013 2014 2015 2016 2017 2018 Global Sales 1,247 1,235 1,331 1,397 1,534 1,559 1,600 Volume （000 units） Results Plan Mazda Motor Corporation 33

  35. Slide 35: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES FY March 2018 Change from Prior Year (000) 1st Half 2nd Half Full Year 1st Half 2nd Half Full year Global sales volume Japan 96 117 213 4 7 11 North America 219 224 443 (6) 20 14 Europe 132 136 267 (2) 8 6 China 149 143 292 16 (15) 1 Other Markets 187

  36. Slide 36: Key Data

    KEY DATA (Billion Yen) 150 140.0 126.9 120.0 Full Year 100 94.4 Full 87.0 Year Full 82.4 Year 65.7 50 58.8 First 46.6 43.1 Half First First 39.4 Half 35.8 Half 0 FY March FY March FY March FY March FY March FY March 2017 2018 2017 2018 2017 2018 Capital Depreciation R&D Cost Expenditures Cost Mazda

  37. Slide 37: Dividend Payment

    DIVIDEND PAYMENT Trend of dividends per share Interim dividends 35 35 Year-end dividends 30 20 20 15 （Plan） 10 15 15 15 1 10 FY March 2014 FY March 2015 FY March 2016 FY March 2017 FY March 2018 Results Plan Note) A share consolidation was implemented on common stock with a ratio of five shares to o

  38. Slide 38: 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

Mazda Motor — H1 FY March 2018 Earnings Presentation on 6ix