Mazda Motor Corp. · TSE:7261
Mazda Motor — H1 FY2011 Earnings Presentation
32 slides from Mazda Motor's earnings presentation, Oct 29, 2010
Slide 1: Fiscal Year Ending March 2011 First Half Financial Results
FISCAL YEAR ENDING MARCH 2011 FIRST HALF FINANCIAL RESULTS Mazda SHINARI Mazda Motor Corporation October 29, 2010 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights Fiscal Year Ending March 2011 First Half Results Fiscal Year Ending March 2011 Full Year Forecast In Summary 2
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: FY Ending March 2011 First Half Highlights
FY ENDING MARCH 2011 FIRST HALF HIGHLIGHTS Revenue was ¥1,157.7 billion, up 17% year-over-year, and operating profit was ¥12.2 billion. Net income was also positive at ¥5.5 billion Exceeded the April forecast for revenue and all profit categories Free cash flow was positive at ¥23.8 billion Global s
Slide 5: FY Ending March 2011 Full Year Forecast Highlights
FY ENDING MARCH 2011 FULL YEAR FORECAST HIGHLIGHTS Revenue of ¥2,300 billion, up 6% year-over-year, an operating profit of ¥25 billion and a net income of ¥6 billion are projected Gains in volume and mix and cost improvements in all areas are implemented to minimize the deterioration of over ¥40 bil
Slide 6: Fiscal Year Ending March 2011 First Half Results
FISCAL YEAR ENDING MARCH 2011 FIRST HALF RESULTS 6
Slide 7: FY Ending March 2011 Financial Metrics
FY ENDING MARCH 2011 FINANCIAL METRICS (Billion yen) First Half Total Change FY Ending FY Ending from from April March 2011 March 2010 Prior Year Forecast Revenue 1,157.7 990.3 167.4 27.7 Operating profit 12.2 (22.1) 34.3 2.2 Ordinary profit 20.8 (29.6) 50.4 12.8 Profit before tax 16.9 (31.6) 48.5 1
Slide 8: Cash Flow and Net Debt
CASH FLOW AND NET DEBT First Half Total FY Ending Improvement / (Deterioration) (Billion yen) FY Ending FY Ending March 2010 from from Prior March 2011 March 2010 Full Year Prior Year FY End Free Cash Flow 23.8 10.2 67.4 - - Net Debt (359.1) (521.6) (375.8) 162.5 16.7 Net Debt-to-equity Ratio 72 % 1
Slide 9: Key Data
KEY DATA First Half Total Change from April FY Ending FY Ending from Forecast March 2011 March 2010 Prior Year volumes Global sales volum e (000) Japan 125 105 19 % (1) North Am erica 177 158 12 (4) USA 119 106 12 (5) Europe 108 123 (13) (10) China 112 85 31 4 Other Markets 137 106 31 12 Total 659 5
Slide 10: Japan
JAPAN First Half Sales Volume (000) / Share (%) 150 10 125 105 100 19% New Premacy 4.8 4.9 5 Achieved 125,000 units sales, up 19% from the prior year due to 50 government subsidy effect as well as strong sales of Demio and New Premacy The New Premacy is off to a good start with order take in the fir
Slide 11: North America
NORTH AMERICA First Half Sales Volume (000) / US Share (%) 200 4 177 158 Canada, 150 12% others Canada, Mazda2 others 58 52 Sales increased by 12% from the prior year to 177,000 units thanks to 100 2 brisk sales of Mazda3, CX-7 and CX-9 2.0 Continued policy of brand value 1.9 enhancement and held do
Slide 12: Europe
EUROPE First Half Sales Volume (000) / Share (%) 4 123 120 108 (13)% Mazda CX-7 80 Due to total industry decline, 2 sales decreased 13% from the 1.3 1.2 prior year to 108,000 units Continued to improve brand 40 value by holding down incentives and keeping focus on retail sales (decreasing fleet mix)
Slide 13: China
CHINA First Half Sales Volume (000) / Share (%) 112 100 85 31% 2 Mazda3 Achieved the highest first half sales of 112,000 units, 31% up from the prior year thanks to 50 strong sales of Mazda6 and other 1.2 1.3 main models Transferred the production of Mazda3 from Chongqing to Nanjing to meet higher d
Slide 14: Other Markets
OTHER MARKETS First Half Sales Volume (000) / Share in Australia (%) 150 20 137 106 15 100 31% AAT-produced Mazda2 sedan 10 Sales volume increased 31% to 8.2 8.4 137,000 units 50 Achieved record high sales volume and share in Australia 5 Successful introduction of AAT- produced Mazda2 substantially
Slide 15: Operating Profit Change
OPERATING PROFIT CHANGE FY Ending March 2011 1st Half Compared with FY Ending March 2010 1st Half (Billion yen) FY Ending March 2011 Other Vol. & Mix + 33.0 Exchange + 16.2 12.2 10.0 Cost Improvement Marketing + 4.1 Expense 0.0 (15.1) (3.9) (10.0) Improvement (Deterioration) US Dollar (7.9) (20.0) E
Slide 16: Fiscal Year Ending March 2011 Full Year Forecast
FISCAL YEAR ENDING MARCH 2011 FULL YEAR FORECAST 16
Slide 17: FY Ending March 2011 Financial Metrics
FY ENDING MARCH 2011 FINANCIAL METRICS Full Year Change FY Ending FY Ending from from April (Billion yen) March 2011 March 2010 Prior Year Forecast Revenue 2,300.0 2,163.9 136.1 30.0 Operating profit 25.0 9.5 15.5 (5.0) Ordinary profit 36.0 4.6 31.4 7.0 Profit before tax 27.0 (7.3) 34.3 6.0 Net inco
Slide 18: Key Data
KEY DATA Full Year Change from April FY Ending FY Ending from Forecast March 2011 March 2010 Prior Year volumes Global sales volume (000) Japan 215 221 (3) % 5 North America 358 307 17 0 USA 246 210 17 (4) Europe 218 239 (9) (8) China 252 196 29 22 Other Markets 277 230 20 31 Total 1,320 1,193 11 %
Slide 19: Market Summary
MARKET SUMMARY Mazda has designated the fiscal year ending March 2011 as the year of “resuming the offensive”, with enhanced sales actions for individual markets Continue our policy of enhancing brand value, and start “Tsunagari innovation” on a global basis Actions by market: ・ Japan: Implement mar
Slide 20: Operating Profit Change
OPERATING PROFIT CHANGE FY Ending March 2011 Full Year Compared with (Billion yen) FY Ending March 2010 Full Year 60.0 Vol. & Mix sales volume increase Improvement Exchange and the improvement + 46.6 (Deterioration) of carline and country mix in major markets US Dollar (21.3) 40.0 Euro (18.6) Other
Slide 21: Operating Profit Change
OPERATING PROFIT CHANGE FY Ending March 2011 Full Year Compared with April Forecast (Billion yen) Minimize exchange rate impact through gains in volume and mix and April cost improvements in all areas Pub (13.7) US Dollar Oct 30.0 Exchange Euro (11.7) Pub 30.0 Other (15.7) Other + 10.2 25.0 Cost Imp
Slide 22: In Summary
IN SUMMARY In the first half, exceeded the April forecast for revenue and all profit categories Sales were led by strong performance by main models including Mazda2/Demio, Mazda3, Mazda6 and CX-7, contributing to share improvements in major markets For the full year, gains in volume and mix and cost
Slide 23: In Summary
IN SUMMARY In this fiscal year, gains in volume and mix and cost improvements in all areas are implemented to minimize the over ¥40 billion deterioration from the appreciation of the yen against all currencies. Steady progress of the Framework for Medium- and Long-Term Initiatives - Implement “Tsuna
Slide 24: Appendix
APPENDIX 24
Slide 25: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA (Billion yen) 616.0 578.0 579.7 600 562.1 557.6 65.6 51.6 57.4 69.7 73.1 428.2 128.9 93.1 96.5 137.5 118.0 Other 48.9 Europe 163.3 140.3 95.5 175.0 300 137.3 164.9 North America 100.5 269.8 235.7 217.2 258.3 240.2 Japan 183.2 0 1Q 2Q 3Q 4Q 1Q 2Q FY Ending FY Ending March 2
Slide 26: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 616.0 562.1 578.0 579.7 600 557.6 65.6 61.8 67.2 62.0 55.8 57.0 428.2 53.7 55.6 57.3 59.0 Other 56.1 Parts 53.1 300 493.5 462.6 442.8 442.7 456.9 Vehicle / Parts for 319.1 overseas production 0 1Q 2Q 3Q 4Q 1Q 2Q FY Ending FY Ending March 2010 March 2011 26
Slide 27: Revenue Change
REVENUE CHANGE FY Ending March 2011 1st Half Compared with FY Ending March 2010 1st Half (Billion yen) FY Ending March 2011 1,157.7 Japan 3% FY Ending March 2010 990.3 Overseas 18% 20% 21% 17% 10% (4)% 0% Total Vol. & Mix Exchange (10)% 27
Slide 28: Operating Profit Change
OPERATING PROFIT CHANGE FY Ending March 2011 2nd Quarter Compared with (Billion yen) FY Ending March 2010 2nd Quarter 15.0 Vol. & Mix 改善 Improvement + 6.5 Exchange (悪化) (Deterioration) 10.0 FY Ending FY Ending March 2010 March 2011 Other 5.9 + 6.8 5.8 5.0 Cost Improvement Marketing (0.3) Expense (10
Slide 29: Key Data
KEY DATA Second Quarter Change FY Ending FY Ending March 2011 March 2010 Amount YOY (%) Global sales volume (000) Japan 73 64 9 14 % North America 87 84 3 4 Europe 54 64 (10) (17) China 59 44 15 34 Other Markets 69 58 11 22 Total 342 314 28 9 % Consolidated wholesales (000) Japan 71 63 8 15 % North
Slide 30: Key Data
KEY DATA Change from April FY Ending March 2011 from Prior Year Forecast 1st Half 2nd Half Full year 1st Half 2nd Half Full year Full year Global sales volume (000) Japan 125 90 215 20 (26) (6) 5 North America 177 181 358 19 32 51 0 Europe 108 110 218 (15) (6) (21) (8) China 112 140 252 27 29 56 22
Slide 31: Key Data
KEY DATA (Billion yen) 100 95.0 Full 85.2 Full Year 76.4 Year 73.0 60.0 50 45.7 1st half 39.7 38.4 Full 1st half 36.2 Year 29.8 18.3 1st half 15.9 0 FY Ending FY Ending FY Ending FY Ending FY Ending FY Ending March 2010 March 2011 March 2010 March 2011 March 2010 March 2011 Capital Spending Deprecia
Slide 32: 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