Mazda Motor Corp. · TSE:7261
Mazda Motor — FY March 2014 Earnings Presentation
42 slides from Mazda Motor's earnings presentation, Apr 25, 2014
Slide 1: Fiscal Year March 2014 Financial Results
FISCAL YEAR MARCH 2014 FINANCIAL RESULTS Mazda CX-5 Mazda Atenza New Mazda Axela Mazda Motor Corporation April 25, 2014 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights Fiscal Year March 2014 Results Fiscal Year March 2015 Forecast Structural Reform Plan Update Summary 2
Slide 3: Highlights
HIGHLIGHTS 3
Slide 4: Highlights (1) - FY March 2014 Results
HIGHLIGHTS (1) - FY MARCH 2014 RESULTS Revenue was ¥2,692.2 billion. Operating profit was ¥182.1 billion. Net income was ¥135.7 billion Global sales volume was 1,331,000 units SKYACTIV models contributed to increased sales, improved profitability and enhanced brand value Following the succes
Slide 5: Highlights (2) - FY March 2015 Forecast
HIGHLIGHTS (2) - FY MARCH 2015 FORECAST Forecast revenue of ¥2,900 billion, operating profit of ¥210 billion and net income of ¥160 billion Projected global sales of 1.42 million units, up 7% year on year • Volume growth due to full-scale operation of Mexico Plant and full-year contribution of n
Slide 6: Fiscal Year March 2014 Results
FISCAL YEAR MARCH 2014 RESULTS 6
Slide 7: FY March 2014 Financial Metrics
FY MARCH 2014 FINANCIAL METRICS Full Year (Memo) FY March FY March Change from FY March 2014 (Billion yen) 2013 2014 Prior Year February Plan Amount YOY(%) Revenue 2,205.3 2,692.2 486.9 22% 2,680.0 Operating profit 53.9 182.1 128.2 238% 180.0 Ordinary profit 33.1 140.7 107.6 325% 132.0 Profit before
Slide 8: Global Sales Volume
GLOBAL SALES VOLUME Full Year (Memo) FY March FY March Change from FY March 2014 (000) 2013 2014 Prior Year February Plan Global Sales Volume Volume YOY(%) Japan 216 244 28 13% 238 North America 372 391 19 5% 402 Europe 172 207 35 21% 200 China 175 196 21 12% 200 Other Markets 300 293 (7) (2)% 285 T
Slide 9: Global Sales Results
GLOBAL SALES RESULTS Sales of CX-5 and Mazda6/Atenza remained strong With the exception of a few markets, growth increased significantly year on year Global launches of new Mazda3/Axela are going well Sales Method Innovation contributed to: • Promotion of sales at the right price, minimized
Slide 10: Japan
JAPAN Sales increased 13% year on year to 244,000 units Share was up 0.1 point versus the prior year at 4.3% New Axela Sales were led by SKYACTIV Full Year Sales Volume models (000) 13% 244 - Orders for New Axela far 216 200 exceeded expectations - CX-5 was the best-selling SUV in Japan for th
Slide 11: North America
NORTH AMERICA Sales grew 5% year on year to 391,000 units USA: 284,000 units, up 4% year on year. Non-fleet sales rose 12% New Mazda3 (North American model) - CX-5 and Mazda6 (000) Full Year Sales Volume continued to contribute 5% 391 to sales growth 400 372 Canada, - Non-fleet sales of New Cana
Slide 12: Europe
EUROPE Sales grew 21% to 207,000 units, significantly more than overall demand growth SKYACTIV models drove sales Mazda6 (European Model) Full Year Sales Volume - Germany: Up 20% year on (000) 207 year to 47,000 units 200 21% 172 - Russia: 44,000 units, up 5% year on year despite 6% drop in over
Slide 13: China
CHINA Sales increased 12% year on year to 196,000 units Mazda6 and locally produced CX-5 drove sales CX-5 (China Model) Full Year Sales Volume Ongoing reinforcement of (000) Mazda brand advertising 200 12% 196 175 focusing on KODO design and SKYACTIV TECHNOLOGY 100 The number of sales outlet
Slide 14: Other Markets
OTHER MARKETS Sales were 293,000 units Australia: Maintained strong sales, 104,000 units and 9.2% market share - 3rd highest-selling maker CX-5 (Australian Model) - CX-5 top-seller in its segment Full Year Sales Volume - Strong start for new Mazda3 (000) 300 300 (2)% 293 launched in February Oth
Slide 15: Operating Profit Change
OPERATING PROFIT CHANGE Improvement FY March 2014 Full Year vs. FY March 2013 Full Year (Deterioration) Reinforcement of advertising Cost to support global launches of (Billion yen) Improvement Mazda6 and new Mazda3 Marketing 250 Exchange + 22.0 Expense Sales increase + 112.7 Other FY March and mix
Slide 16: Non-Operating Profit/Loss & Extraordinary Profit/Loss
NON-OPERATING PROFIT/LOSS & EXTRAORDINARY PROFIT/LOSS (Memo) (Billion yen) FY March 2014 FY March 2014 Results Main factors February Plan Exchange loss (42.2) Operating profit 182.1 Equity method profit 9.7 180.0 Interest paid/received (10.5) Non-Operating profit/loss (41.4) (48.0) Main factors Ordi
Slide 17: Fiscal Year March 2015 Forecast
FISCAL YEAR MARCH 2015 FORECAST 17
Slide 18: Global Sales Volume
GLOBAL SALES VOLUME Change from FY March 2015 Prior Year First Second Full Volume YOY(%) (000) Half Half Year Global Sales Volume Japan 104 126 230 (14) (6)% North America 227 213 440 49 13% Europe 109 111 220 13 6% China 100 130 230 34 17% Other Markets 142 158 300 7 2% Total 682 738 1,420 89 7% <B
Slide 19: FY March 2015 Global Sales Initiatives
FY MARCH 2015 GLOBAL SALES INITIATIVES Contribution of new Mazda3 sales throughout the year and full-scale operation at Mexico Plant should drive global volume growth Launch two SKYACTIV models to enhance core model line-up Update SKYACTIV products to maintain and enhance competitiveness, and
Slide 20: FY March 2015 Financial Metrics
FY MARCH 2015 FINANCIAL METRICS Change from FY March 2015 Prior Year First Second Full Amount YOY(%) (Billion yen) Half Half Year Revenue 1,420.0 1,480.0 2,900.0 207.8 8% Operating profit 100.0 110.0 210.0 27.9 15% Ordinary profit 98.0 112.0 210.0 69.3 49% Profit before tax 94.0 106.0 200.0 102.6 10
Slide 21: Operating Profit Change
OPERATING PROFIT CHANGE Improvement FY March 2015 Full Year vs. FY March 2014 Full Year (Deterioration) Sales increase Globally reinforce and mix (Billion yen) improvement of advertisement for new SKYACTIV models Cost model introductions and Improvement Marketing brand enhancement Volume & Mix + 10.
Slide 22: Structural Reform Plan Update
STRUCTURAL REFORM PLAN UPDATE 22
Slide 23: Structural Reform Plan
STRUCTURAL REFORM PLAN Targets for FY March 2016 • Global sales volume 1.52 million units • Operating profit ¥230 billion • Operating ROS 7% or higher [Exchange assumptions: ¥100/USD, ¥135/Euro] Global sales volume reflects changing demand and market environments Continue to strengthen the fou
Slide 24: Continue to Strengthen Four Initiatives
CONTINUE TO STRENGTHEN FOUR INITIATIVES Business Innovation by SKYACTIV TECHNOLOGY Continue right-price sales and realize volume growth while minimizing fleet sales Expand line-up of SKYACTIV models Update SKYACTIV products to maintain and enhance competitiveness Enhance advertising activiti
Slide 25: Summary
SUMMARY 25
Slide 26: Summary: Mazda Brand Value Management
SUMMARY Operating profit (Billion yen) SKYACTIV Mix 85% Mazda brand value M a z d a B r a n d Va l u e M a n a g e me n t Operating ROS 70% or higher Maximize customer 50% satisfaction by providing 230.0 Mazda unique ”fun-to- 30% drive” products/services 210.0 (driving performance/design/ environm
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Slide 28: Appendix
APPENDIX 28
Slide 29: Cash Flow and Net Debt
CASH FLOW AND NET DEBT Full Year Change from (Billion yen) FY March 2013 FY March 2014 Prior FY End Cash Flow - From operating activities 49.0 136.4 - - From investing activities (40.3) (120.1) - - Free Cash Flow 8.7 16.3 - Cash and Cash Equivalents 444.9 479.8 34.9 Net Debt 274.1 263.0 11.1 Net Deb
Slide 30: Revenue by Geographic Area
REVENUE BY GEOGRAPHIC AREA (Billion yen) 752.0 670.1 685.9 100.5 638.4 615.9 100.3 600 113.2 97.9 151.5 106.7 506.6 516.9 511.7 141.9 121.6 Other 100.3 126.4 89.4 114.7 109.3 Europe 67.8 70.8 226.7 84.2 209.0 183.9 226.8 300 North 194.7 America 152.2 141.3 144.9 273.3 204.5 226.3 205.2 230.2 216.9 J
Slide 31: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 752.0 670.1 685.9 79.0 638.4 50.2 40.0 53.6 615.9 600 56.0 59.4 50.4 49.4 516.9 51.8 55.3 506.6 511.7 Other 55.0 48.7 48.5 47.6 45.2 Parts 46.5 633.0 300 576.3 Vehicles/ 566.1 514.7 527.1 Parts for 420.6 418.0 overseas 405.1 production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY Ma
Slide 32: Revenue Change
REVENUE CHANGE FY March 2014 Full Year vs. FY March 2013 Full Year (Billion yen) FY March 2014 2,692.2 FY March 2013 2,205.3 Japan 3% 20% Overseas 6% 22% 10% 13% 9% 0% Total Volume & Mix Exchange 32
Slide 33: Revenue Change
REVENUE CHANGE FY March 2014 Fourth Quarter vs. FY March 2013 Fourth Quarter (Billion yen) 15% FY March 2014 752.0 FY March 2013 670.1 Japan 5% Overseas 2% 12% 10% 5% 7% 5% 0% Total Volume & Mix Exchange 33
Slide 34: FY March 2014 Financial Metrics
FY MARCH 2014 FINANCIAL METRICS Fourth Quarter FY March FY March Change from (Billion yen) 2013 2014 Prior Year Revenue 670.1 752.0 81.9 Operating profit 34.3 57.5 23.2 Ordinary profit 11.7 47.6 35.9 Profit before tax 9.0 7.4 (1.6) Net income 8.7 58.3 49.6 Operating ROS 5.1% 7.6% 2.5pts EPS (Yen) 2.
Slide 35: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Fourth Quarter FY March FY March Change from (000) 2013 2014 Prior Year Global Sales Volume Japan 66 82 16 North America 102 102 0 Europe 53 63 10 China 46 55 9 Other Markets 75 76 1 Total 342 378 36 Consolidated Wholesales Japan 69 82 13 North America
Slide 36: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2014 Fourth Quarter vs. FY March 2013 Fourth Quarter Improvement (Deterioration) (Billion yen) Marketing Cost Expense 75 Improvement + 4.1 Other + 8.9 FY March Exchange 2014 + 15.7 57.5 (14.7) Volume & Mix 50 FY March + 9.2 2013 34.3 25 Change from Prior Year + 23.2
Slide 37: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2014 Full Year vs. February Plan Improvement (Billion yen) (Deterioration) 250 Feb. Cost Marketing Results Plan Exchange Improvement Expense Other 200 182.1 180.0 Volume & Mix + 2.7 + 1.3 + 1.2 + 0.9 (4.0) 150 100 50 Change from February Plan + 2.1 0 37
Slide 38: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES (Memo) FY March 2014 Change from Prior Year FY March First Second Full First Second Full 2014 Feb. Plan (000) Half Half Year Half Half Year Global Sales Volume Japan 111 133 244 1 27 28 238 North America 199 192 391 17 2 19 402 Europe 97 110 207 12 23
Slide 39: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES FY March 2015 Change from Prior Year First Second Full First Second Full (000) Half Half Year Half Half Year Global Sales Volume Japan 104 126 230 (7) (7) (14) North America 227 213 440 28 21 49 Europe 109 111 220 12 1 13 China 100 130 230 21 13 34 Oth
Slide 40: Key Data
KEY DATA (Billion yen) 150.0 150 133.2 99.4 100.0 100 70.0 57.7 50 0 FY3/14 FY3/15 FY3/14 FY3/15 FY3/14 FY3/15 Capital Depreciation R&D cost Spending ※ Data for FY March 2015 are forecast 40
Slide 41: Returns to Shareholders, Consolidation of Shares
RETURNS TO SHAREHOLDERS, CONSOLIDATION OF SHARES AND CHANGE IN THE NUMBER OF SHARES PER SHARE UNIT Returns to Shareholders FY March 2014 year-end dividend ¥1 per share (Plan) FY March 2015 year-end dividend ¥2* per share (Plan) * ¥10 after consolidation of shares Work to provide stable dividen
Slide 42: 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