Mazda Motor Corp. · TSE:7261
Mazda Motor — FY2006 Earnings Presentation
42 slides from Mazda Motor's earnings presentation, Apr 27, 2007
Slide 1: FY2006 Results and FY2007 Projections
FY2006 RESULTS AND FY2007 PROJECTIONS MAZDA MOTOR CORPORATION April 27, 2007 1
Slide 2: Outline
OUTLINE Overview FY2006 Results FY2007 Projections In Summary 2
Slide 3: Overview
OVERVIEW 3
Slide 4: FY2006 Highlights
FY2006 HIGHLIGHTS Operating Profit, Up 28% to ¥158.5 Billion Net Income, at ¥73.7 Billion, Up 26% Excluding Impact of Gain from Pension Fund Return and Asset-Impairment Losses in the Prior Year Record High Profits at All Levels Product-led Growth with the CX-7 and CX-9 Revenues Up 11% Plan to Increa
Slide 5: FY2007 Highlights
FY2007 HIGHLIGHTS Operating Profit Up 1% to ¥160 Billion, Net Income Up 15% to ¥85 Billion Launch Demio/Mazda2 in Japan, Europe and Other Markets, Launch CX-7 in Europe Global Retail Sales Up 4% to 1.35 Million Units Expand Domestic Plant Capacity Start Operation at Vehicle and Engine Plants in Chin
Slide 6: FY2006 Results
FY2006 RESULTS 6
Slide 7: FY2006 Financial Metrics
FY2006 FINANCIAL METRICS (Billion yen) Full Year Change FY2006 FY2005 Amount Pct. Revenues 3,247.5 2,919.8 327.7 11 % Operating Profit 158.5 123.4 35.1 28 % Ordinary Profit 127.8 101.5 26.3 26 % Profit Before Tax 118.5 117.5 1.0 1 % Net Income 73.7 66.7 7.0 11 % Memo: Net Income * 73.7 58.4 15.3 26
Slide 8: Cash Flow & Net Debt
CASH FLOW & NET DEBT B/(W) Prior (Billion yen) FY2006 FY2005 Year End Cash Flow - Operating C/F 116.4 114.6 - - Investment C/F (95.4) (81.0) - - Free C/F 21.0 33.6 - Net Debt 232.2 246.8 14.6 Net Debt-to-Equity 49 % 62 % 13 Pts Dividend (Yen/Share) 6 5 1 8
Slide 9: Key Data
KEY DATA New product launches Billion yen and personnel increase 120 Higher investment for 107.6 new products, and 100 capacity increases for 95.7 MZR engine and 79.6 automatic 80 72.1 transmission 60 45.8 47.0 40 20 0 FY05 FY06 FY05 FY06 FY05 FY06 Capital Spending Depreciation R&D Cost 9
Slide 10: Key Data
KEY DATA Full Year FY2006 FY2005 Change Global Retail Volume (000) 1,302 1,276 2 % Exchange Rates Yen / U.S. Dollar 117 113 ¥ 4 Yen / Euro 150 138 ¥ 12 10
Slide 11: Revenue Changes by Destination
REVENUE CHANGES BY DESTINATION FY2006 Compared With FY2005 18% 16% Vol. & Mix 7 % 16% Exchange 4 % 14% 11% 12% 10% 8% 6% 4% 2% 0% 0% (Billion yen) Total Domestic Overseas FY06 3,247.5 887.3 2,360.2 FY05 2,919.8 887.7 2,032.1 11
Slide 12: Japan
JAPAN Full Year FY2006 FY2005 Change Retail Volume (000) * 261 285 (9) % Low Registration Vehicle Demand * Excluding volume sold under Ford Brand 12
Slide 13: North America
NORTH AMERICA Full Year Retail Volume (000) FY2006 FY2005 Change United States 281 262 7 % Canada & Other * 99 90 10 % North America Total 380 352 8 % Introduced CX-7, CX-9 and Tribute * Including Mexico and Puerto Rico 13
Slide 14: Europe
EUROPE Full Year FY2006 FY2005 Change Retail Volume (000) 301 282 7 % Exceeded 300,000 Units First in 15 Years 14
Slide 15: China
CHINA Full Year FY2006 FY2005 Change Retail Volume (000) 129 130 (1) % Resumed Sales of Mazda3 15
Slide 16: Other Markets
OTHER MARKETS Full Year FY2006 FY2005 Change Retail Volume (000) 231 227 2 % New Pick-Up BT-50 Contributed to Sales Growth 16
Slide 17: Operating Profit Changes
OPERATING PROFIT CHANGES FY2006 Compared With FY2005 Billion yen [Factors for Increase] 40 35.1 40.0 - Better volume and mix with CX-7 and CX-9. 31.1 [Factors for Decrease] 30 - Lower registration vehicle demand in Japan. 20 12.1 10 0.1 0 (10) FY06 158.5 (20) FY05 123.4 (18.7) (30) (29.5) (40) Total
Slide 18: Operating Profit Changes
OPERATING PROFIT CHANGES FY2006 Compared With FY2005 Billion yen 40.0 US Dollar 9.8 40 35.1 Euro 18.1 31.1 Other 12.1 30 20 12.1 10 0.1 0 (10) FY06 158.5 (20) FY05 123.4 (18.7) (30) (29.5) (40) Total Vol&Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 18
Slide 19: Operating Profit Changes
OPERATING PROFIT CHANGES FY2006 Compared With FY2005 Billion yen Product upgrades (12.5) 40 35.1 40.0 Regulations (6.2) 31.1 Cost reductions net of 30 raw material price increase including 20 12.1 aluminum, steel and 10 precious metal 0.1 0 (10) FY06 158.5 (20) FY05 123.4 (18.7) (30) (29.5) (40) Tot
Slide 20: Operating Profit Changes
OPERATING PROFIT CHANGES FY2006 Compared With FY2005 Billion yen 40 35.1 40.0 Higher quality-related cost, 31.1 R&D cost and depreciation 30 20 12.1 10 0.1 0 (10) FY06 158.5 (20) FY05 123.4 (18.7) (30) (29.5) (40) 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
KEY DATA New product launches Billion yen and personnel increase 140 Higher investment for 120.0 120 domestic plant capacity increase, engine 107.6 94.0 capacity increase and 100 new products 79.6 80 65.0 60 47.0 40 20 0 FY06 FY07 FY06 FY07 FY06 FY07 Capital Spending Depreciation R&D Cost 23
Slide 24: Key Data
KEY DATA Full Year FY2007 FY2006 Change Global Retail Volume (000) 1,350 1,302 4 % Exchange Rates Yen / U.S. Dollar 115 117 ¥ (2) Yen / Euro 153 150 ¥ 3 24
Slide 25: Revenue Changes by Destination
REVENUE CHANGES BY DESTINATION FY2007 Compared With FY2006 4% 3% Vol. & Mix 2 % 3% Exchange 0 % 2% 2% 1% 0% 0% (Billion yen) Total Domestic Overseas FY07 3,320.0 890.0 2,430.0 FY06 3,247.5 887.3 2,360.2 25
Slide 26: Japan
JAPAN Full Year FY2007 FY2006 Change Retail Volume (000) 262 261 1 % Introduce New Demio Euro Spec. 26
Slide 27: North America
NORTH AMERICA Full Year Retail Volume (000) FY2007 FY2006 Change United States 296 281 5 % Canada & Other * 107 99 8 % North America Total 403 380 6 % Full Year Contribution of CX-7 & CX-9 * Including Mexico and Puerto Rico 27
Slide 28: Europe
EUROPE Full Year FY2007 FY2006 Change Retail Volume (000) * 321 304 6 % Introduce New Mazda2 ＊Including Turkey 28
Slide 29: China
CHINA Full Year FY2007 FY2006 Change Retail Volume (000) 105 129 (19) % Excl. Volum e Produced in Hainan 105 53 98 % Sales Growth with Mazda2 & Mazda3 29
Slide 30: Other Markets
OTHER MARKETS Full Year FY2007 FY2006 Change Retail Volume (000) * 259 228 14 % Introduce CX-9 in Australia US Spec. * Excluding Turkey 30
Slide 31: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 Compared With FY2006 Billion yen [Factors for Increase] - Higher sales volume 30 with Mazda2, CX-7 and 24.6 CX-9 20 [Factors for Decrease] 14.9 - Realize an appropriate inventory level in USA 10 1.5 0 FY07 160.0 (1.2) (10) FY06 158.5 (5.0) (13.3) (20) (18.5) Total Vol
Slide 32: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 Compared With FY2006 Billion yen 30 24.6 20 14.9 10 1.5 0 FY07 160.0 (1.2) (10) FY06 158.5 (5.0) (13.3) (20) (18.5) Total Vol&Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 32
Slide 33: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 Compared With FY2006 Billion yen Cost reductions net of Product upgrades (10.2) raw material price 30 increase Regulations (3.1) 24.6 20 14.9 10 1.5 0 FY07 160.0 (1.2) (10) FY06 158.5 (5.0) (13.3) (20) (18.5) Total Vol&Mix Exch. Product CR Mktg. Other Oper. Enhanc. Ex
Slide 34: Operating Profit Changes
OPERATING PROFIT CHANGES FY2007 Compared With FY2006 Billion yen 30 Higher R&D 24.6 cost and depreciation 20 14.9 10 1.5 0 FY07 160.0 (1.2) (10) FY06 158.5 (5.0) (13.3) (20) (18.5) Total Vol&Mix Exch. Product CR Mktg. Other Oper. Enhanc. Exp. Costs 34
Slide 35: In Summary
IN SUMMARY 35
Slide 36: In Summary
IN SUMMARY FY06 Operating Profit Up 28% to ¥158.5 Billion, Achieved Record-High Profits at All Levels FY07 Operating Profit Up 1% to ¥160 Billion, Net Income Up 15% to ¥85 Billion Continue Product-led Growth Capacity Expansion in Japan and China Implement Mazda Advancement Plan For the Future 36
Slide 37: 37
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Slide 38: Appendix
APPENDIX 38
Slide 39: Key Data
KEY DATA FY2007 (Billion yen) 1st Half 2nd Half Full Year Revenues 1580.0 1740.0 3320.0 Operating Profit 60.0 100.0 160.0 Ordinary Profit 50.0 90.0 140.0 Profit Before Tax 45.0 85.0 130.0 Net Income 25.0 60.0 85.0 Operating ROS 3.8 % 5.7 % 4.8 % EPS (Yen/Share) 17.8 42.6 60.4 39
Slide 40: Key Data
KEY DATA FY2007 (000) 1st Half 2nd Half Full Year Global Retail Volume Japan 126 136 262 North America 218 185 403 Europe * 155 166 321 China 43 62 105 Other 128 131 259 Total 670 680 1,350 * Including Turkey 40
Slide 41: Key Data
KEY DATA FY2007 1st Half 2nd Half Full Year Consol. Wholesales (000) Japan 128 137 265 North America * 177 202 379 Europe 132 184 316 Other 113 127 240 Total 550 650 1,200 Exchange Rates Yen/U.S. Dollar 115 115 115 Yen/Euro 155 150 153 * Including Puerto Rico 41
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