Mazda Motor Corp. · TSE:7261
Mazda Motor — Q3 FY March 2017 Earnings Presentation
35 slides from Mazda Motor's earnings presentation, February 2017
Slide 1: Fiscal Year March 2017 Third Quarter Financial Results
FISCAL YEAR MARCH 2017 THIRD QUARTER FINANCIAL RESULTS
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights Fiscal Year March 2017 Nine Month Results Fiscal Year March 2017 Full Year Forecast Structural Reform Stage 2 Progress of Key Initiatives Mazda Motor Corporation 1
Slide 3: Highlights
HIGHLIGHTS 【FY March 2017 - Nine Month Results】 Global sales were up 17,000 units over the prior year to 1,162,000 units, a new record for the first nine months Revenue was ¥2,348.6 billion, operating profit was ¥102 billion and net income was ¥79.9 billion Started CX-3 production at Hofu Plan
Slide 4: Fiscal Year March 2017 Nine Month Results
FISCAL YEAR MARCH 2017 NINE MONTH RESULTS Mazda Motor Corporation 3
Slide 5: FY March 2017 Global Sales Volume
FY MARCH 2017 GLOBAL SALES VOLUME Nine Month FY March FY March Change from (000) 2016 2017 Prior Year Global sales volume Volume YOY(%) Japan 163 132 (31) (19)% North America 345 331 (14) (4)% Europe 183 191 8 4% China 177 227 50 29% Other Markets 277 281 4 1% Total 1,145 1,162 17 1% <Breakdown> USA
Slide 6: Japan
JAPAN Sales were 132,000 units, down 19% year on year Market share was 3.8%, down 0.9 points year on year. Registered vehicle market share was 4.6%, down 1.6 points MX-5 RF Introduced updated Mazda2 and CX-3 in November following Nine Month Sales Volume updates of Mazda3 and Mazda6 in the firs
Slide 7: North America
NORTH AMERICA Sales were 331,000 units, TBD down 4% year on year USA: Sales were 233,000 units, down 3% year on year - While crossovers sales maintain momentum, the market for New CX-9 新型CX-9 passenger cars continues to be tough - High-grade models of new CX-9 Nine Month Sales Volume are selling
Slide 8: Europe
EUROPE Sales were 191,000 units, up 4% year on year Strong sales of CX-3 and MX-5 contributed to volume growth Sales in Europe excluding Russia grew 7% year on year to CX-3 174,000 units - Germany: 47,000 units, up 7% Nine Month Sales Volume year on year (000) - UK: 29,000 units, down 4% 191 y
Slide 9: China
CHINA Sales were 227,000 units, up 29% year on year New CX-4 ⁃ Won 2017 China Car Design of the Year ⁃ Strong sales results are New CX-4 exceeding the initial plan Mazda3 led sales, thanks in part Nine Month Sales Volume to the compact car tax reduction (000) scheme 227 250 29% Updated Mazda
Slide 10: Other Markets
OTHER MARKETS Sales were 281,000 units, up 1% year on year Australia: Sales were 88,000 units, up 2％ year on year, and market share was 9.8％ - Second highest-selling brand Mazda3 - CX-5 is the best seller in its segment Nine Month Sales Volume ASEAN: Sales were 80,000 units, (000) up 5％ year o
Slide 11: FY March 2017 Financial Metrics
FY MARCH 2017 FINANCIAL METRICS Nine Month FY March FY March Change from (Billion yen) 2016 2017 Prior Year Amount YOY(%) Revenue 2,547.8 2,348.6 (199.2) (8)% Operating profit 173.4 102.0 (71.4) (41)% Ordinary profit 172.0 117.9 (54.1) (31)% Profit before tax 166.5 110.7 (55.8) (33)% Net income 123.
Slide 12: FY March 2017 Operating Profit Change
FY MARCH 2017 OPERATING PROFIT CHANGE FY March 2017 Nine Month vs. FY March 2016 Nine Month (Billion yen) Improvement 【Exchange】 (Deterioration) USD (17.4) EUR (22.8) 250 CAD (13.8) AUD (19.1) GBP (16.5) Other (12.2) FY March Enhanced cost Volume & 2016 improvement efforts 200 Mix 173.4 + 0.5 Exchan
Slide 13: Fiscal Year March 2017 Full Year Forecast
FISCAL YEAR MARCH 2017 FULL YEAR FORECAST Mazda Motor Corporation 12
Slide 14: FY March 2017 Global Sales Volume
FY MARCH 2017 GLOBAL SALES VOLUME FY March 2017 Change from (000) 1st Half 2nd Half Full Year Prior Year Nov. Forecast YOY(%) Volume Global sales volume Japan 93 112 205 (12)% (5) North America 224 208 432 (1)% (17) Europe 134 126 260 1% 0 China 133 148 281 19% 22 Other Markets 191 181 372 0% 0 Tota
Slide 15: FY March 2017 Financial Metrics
FY MARCH 2017 FINANCIAL METRICS FY March 2017 Change from (Billion yen) 1st Half 2nd Half Full Year Prior Year Nov. Forecast Revenue 1,546.3 1,653.7 3,200.0 (206.6) 50.0 Operating profit 88.3 41.7 130.0 (96.8) (20.0) Ordinary profit 82.6 52.4 135.0 (88.6) (20.0) Profit before tax 76.2 46.8 123.0 (44
Slide 16: FY March 2017 Operating Profit Change
FY MARCH 2017 OPERATING PROFIT CHANGE FY March 2017 Full Year vs. FY March 2016 Full Year Improvement (Billion yen) (Deterioration) 【Exchange】 USD (18.2) EUR (26.2) CAD (14.1) AUD (19.1) 300 GBP (19.8) Other (7.6) FY March Volume & Enhance cost improvements 2016 Mix for new products and overseas 226
Slide 17: FY March 2017 Operating Profit Change
FY MARCH 2017 OPERATING PROFIT CHANGE FY March 2017 Full Year vs. November Forecast Improvement (Billion yen) Impact of reduced 【Exchange】 (Deterioration) wholesale volume USD 4.6 EUR 3.1 in Japan and North America, etc. CAD 1.9 AUD 3.9 GBP 2.2 Other 2.3 Nov. Cost Marketing Forecast Exchange Improve
Slide 18: Structural Reform Stage 2 Progress of Key Initiatives
STRUCTURAL REFORM STAGE 2 PROGRESS OF KEY INITIATIVES Mazda Motor Corporation 17
Slide 19: Initiatives for Sustainable Growth
INITIATIVES FOR SUSTAINABLE GROWTH Stable growth of around 50,000 units per year by enhancing sales of crossover vehicles Improve sales of passenger vehicles with product enhancements and strengthened marketing initiatives Accelerate cost improvements, including at overseas plants Thoroughly
Slide 20: Product and R&D; Global sales and network enhancement
STRUCTURAL REFORM STAGE 2: PROGRESS OF KEY INITIATIVES Product and R&D Expand SKYACTIV lineup to enhance sales and improve brand value - New MX-5 RF (from Dec. 2016), New CX-5 (from Feb. 2017) - Clean diesel model for North America (in second half of 2017) Electric drive / Autonomous driving tec
Slide 21: Global production and cost improvement; Strengthen financial base
STRUCTURAL REFORM STAGE 2: PROGRESS OF KEY INITIATIVES Global production and cost improvement Support volume growth by maximizing efficiency at key production sites and increasing production flexibility for crossover vehicles - Began production of CX-3 at Hofu Plant (in Dec. 2016) - Further enhanc
Slide 22: Mazda Motor Corporation
Mazda Motor Corporation 21
Slide 23: Appendix
APPENDIX Mazda Motor Corporation 22
Slide 24: Cash Flow and Net Debt
CASH FLOW AND NET DEBT FY March 2016 FY March 2017 Change from (Billion yen) Full Year 3rd Quarter Prior FY End Cash Flow - From Operating activities 262.8 84.0 - - From Investing activities (108.1) (40.1) - - Free Cash Flow 154.7 43.9 - Cash and Cash Equivalents 568.7 571.1 2.4 Net Debt 48.4 14.0 3
Slide 25: Revenue by Region
REVENUE BY REGION (Billion yen) 894.5 900 847.3 858.8 806.0 802.3 135.8 776.2 770.1 151.6 143.7 Other 126.7 130.3 125.6 132.8 183.8 Europe 166.6 600 144.0 180.6 140.6 154.1 145.4 304.6 277.3 North 291.0 284.6 236.0 291.6 281.4 America 300 Japan 244.3 270.3 271.2 256.0 239.7 230.5 215.1 0 1Q 2Q 3Q 4Q
Slide 26: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 894.5 900 847.3 858.8 806.0 56.9 69.3 802.3 61.8 56.8 776.2 770.1 Other 53.5 61.6 61.8 58.0 56.1 56.5 Parts 59.0 58.5 57.3 57.4 600 Vehicles / 775.8 Parts for 693.5 728.9 727.7 685.8 662.8 656.3 300 Overseas Production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY March 2016 FY March 20
Slide 27: Revenue Change: Nine Month vs. Nine Month
REVENUE CHANGE FY March 2017 Nine Month vs. FY March 2016 Nine Month (Billion yen) FY March 2017 2,348.6 Japan (3)% FY March 2016 2,547.8 Overseas 5% 8% 3% 2% (2)% (7)% (8)% (10)% (12)% Total Volume & Mix Exchange Mazda Motor Corporation 26
Slide 28: Revenue Change: Third Quarter vs. Third Quarter
REVENUE CHANGE FY March 2017 Third Quarter vs. FY March 2016 Third Quarter (Billion yen) 10% Japan (1)% FY March 2017 802.3 Overseas 4% FY March 2016 847.3 5% 3% 0% (5)% (5)% (8)% (10)% Total Volume & Mix Exchange Mazda Motor Corporation 27
Slide 29: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Third Quarter FY March FY March Change from (000) 2016 2017 Prior Year Global sales volume Volume YOY(%) Japan 43 39 (4) (8)% North America 112 107 (5) (5)% Europe 59 57 (2) (5)% China 68 94 26 40% Other Markets 99 90 (9) (9)% Total 381 387 6 2% Consol
Slide 30: Exchange Rates
EXCHANGE RATES Full Year FY March FY March (Yen) 2016 2017 Change US Dollar 120 107 (13) Euro 133 119 (14) Canadian Dollar 92 82 (10) Australian Dollar 89 81 (8) British Pound 181 141 (40) Mazda Motor Corporation 29
Slide 31: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Change from FY March 2017 Change from Prior Year Nov. Forecast (000) 1st Half 2nd Half Full Year 1st Half 2nd Half Full Year Full Year Global sales volume Japan 93 112 205 (27) 0 (27) (5) North America 224 208 432 (9) 3 (6) (17) Europe 134 126 260 10 (
Slide 32: Crossover Vehicle Ratio
CROSSOVER VEHICLE RATIO （000 units） 1,500 Crossover vehicles 34% 39% 12% 28% 21% 27% 1,000 Passenger 500 vehicles, and others - FY12/3 FY13/3 FY14/3 FY15/3 FY16/3 FY17/3 Globa sales 1,247 1,235 1,331 1,397 1,534 1,550 volume (000 units) Results Plan Mazda Motor Corporation 31
Slide 33: Key Data
KEY DATA (Billion yen) 150 125.0 Full 116.6 105.0 Year 100 Full 89.2 Year Full 83.0 Year 79.0 93.8 Nine 81.5 Month 50 60.4 Nine 58.6 60.1 Nine 53.7 Month Month 0 FY March FY March FY March FY March FY March FY March 2016 2017 2016 2017 2016 2017 Capital Depreciation R&D Cost Expenditures Cost Mazda
Slide 34: Dividend Payment
DIVIDEND PAYMENT Trend of dividends per share Interim dividends 35 Year-end dividends 30 20 （Plan) 15 10 15 15 10 1 FY March 2014 FY March 2015 FY March 2016 FY March 2017 Result Plan Note) A share consolidation was implemented on common stock with a ratio of five shares to one share on August 1, 20
Slide 35: 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