Mazda Motor Corp. · TSE:7261

Mazda Motor — FY March 2016 Earnings Presentation

44 slides from Mazda Motor's earnings presentation, April 2016

  1. Slide 1: Fiscal Year March 2016 Financial Results

    FISCAL YEAR MARCH 2016 FINANCIAL RESULTS 1

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Consolidated Financial Results and Forecast Summary  Fiscal Year March 2016 Results  Fiscal Year March 2017 Forecast  Structural Reform Plan Review  Structural Reform Stage 2  Summary 2

  3. Slide 3: Consolidated Financial Results / Forecast Summary

    CONSOLIDATED FINANCIAL RESULTS / FORECAST SUMMARY 【FY March 2016 Results】  Global sales volume was 1,534,000 units, the highest on record  Revenue was ¥3,406.6 billion. Operating profit was ¥226.8 billion. Net income was ¥134.4 billion. 【FY March 2017 Forecast】  Forecast global sales of 1,550,000

  4. Slide 4: Fiscal Year March 2016 Results

    FISCAL YEAR MARCH 2016 RESULTS 4

  5. Slide 5: FY March 2016 Global Sales Volume

    FY MARCH 2016 GLOBAL SALES VOLUME Full Year (Feb. Forecast) FY March FY March Change from FY March (000) 2015 2016 Prior Year 2016 Global sales volume Volume YOY(%) Japan 225 232 7 3% 234 North America 425 438 13 3% 447 Europe 229 257 28 12% 255 China 215 235 20 10% 220 Other Markets 303 372 69 23%

  6. Slide 6: Japan

    JAPAN  Sales were 232,000 units, up 3% year-on-year  Mazda sales grew while overall demand declined, and Mazda6/Atenza market share rose 0.5 points year-on-year to 4.7％. Registered vehicle market Full Year Sales Volume share was 6.1%, up (000) 300 0.6 points year-on-year +3% 225 232 200  Launch o

  7. Slide 7: North America

    NORTH AMERICA  Sales were 438,000 units, up 3% year-on-year  Good progress made in the transition to SKYACTIV models CX-5  USA: Sales were 306,000 units, on par with last year, while fleet sales were restrained Full Year Sales Volume - Sales of updated CX-5 were (000) strong 500 +3% 438 - CX-3 an

  8. Slide 8: Europe

    EUROPE  Sales were 257,000 units, up 12% year-on-year  CX-3 drove sales and Mazda2 contributed throughout the year CX-3  Sales in Europe excluding Russia grew 27% year-on-year to 232,000 units, far outpacing Full Year Sales Volume (000) overall demand growth 300 +12% - Germany: 60,000 units, 257

  9. Slide 9: China

    CHINA  Sales were 235,000 units, up 10% year-on-year  Sales of Mazda3 remained strong, thanks in part to a reduction in taxes Mazda3/Axela  Updated CX-5 and Mazda6 Full Year Sales Volume contributed to sales growth (000) 300 +10%  New CX-4 was unveiled at 215 235 Beijing Motor Show 200 100 0 New

  10. Slide 10: Other Markets

    OTHER MARKETS  Sales were 372,000 units, up 23% year-on-year  Australia: Sales were 116,000 units, up 15% year-on-year and market share was 10% - No.2 in sales by brand - CX-3 and CX-5 were the best Mazda2/Demio sellers in their segments - New MX-5 sales were also strong Full Year Sales Volume  A

  11. Slide 11: FY March 2016 Financial Metrics

    FY MARCH 2016 FINANCIAL METRICS Full Year FY March FY March Change from (Billion yen) 2015 2016 Prior Year Amount YOY(%) Revenue 3,033.9 3,406.6 372.7 12% Operating profit 202.9 226.8 23.9 12% Ordinary profit 212.6 223.6 11.0 5% Profit before tax 209.3 167.0 (42.3) (20)% Net income 158.8 134.4 (24.4

  12. Slide 12: FY March 2016 Operating Profit Change

    FY MARCH 2016 OPERATING PROFIT CHANGE Improvement (Billion yen) (Deterioration) Global sales Includes lower increase material prices Volume & Cost Marketing 300 Mix Improvement Expense FY March + 56.0 Exchange + 43.7 + 1.7 Other 2016 FY March 2015 226.8 202.9 (35.1) 200 (42.4) Increase in R&D cost f

  13. Slide 13: Fiscal Year March 2017 Forecast

    FISCAL YEAR MARCH 2017 FORECAST 13

  14. Slide 14: FY March 2017 Global Sales Volume

    FY MARCH 2017 GLOBAL SALES VOLUME Full Year FY March FY March Change from (000) 2016 2017 Prior Year Volume YOY(%) Global sales volume Japan 232 233 1 0% North America 438 449 11 3% Europe 257 260 3 1% China 235 238 3 1% Other Markets 372 370 (2) (1)% Total 1,534 1,550 16 1% <Breakdown> USA 306 325

  15. Slide 15: FY March 2017 Financial Metrics

    FY MARCH 2017 FINANCIAL METRICS Full Year FY March FY March Change from (Billion yen) 2016 2017 Prior Year Amount YOY(%) Revenue 3,406.6 3,280.0 (126.6) (4)% Operating profit 226.8 170.0 (56.8) (25)% Ordinary profit 223.6 176.0 (47.6) (21)% Profit before tax 167.0 169.0 2.0 1% Net income 134.4 115.0

  16. Slide 16: FY March 2017 Operating Profit Change (Improvement Factors)

    FY MARCH 2017 OPERATING PROFIT CHANGE 【Improvement Factors】 Volume growth and profitability improvement, Cost improvement, Containment of fixed cost 【Volume & Mix / Exchange rates】 Improvement (Billion yen) Improve profitability by introducing new CX-9 and updated models. (Deterioration) Mitigate ex

  17. Slide 17: FY March 2017 Operating Profit Change (Deterioration Factors)

    FY MARCH 2017 OPERATING PROFIT CHANGE 【Deterioration Factors】 Exchange impact, Investment for growth (Billion yen) 【Exchange】 Improvement USD (15.6) EUR (14.9) (Deterioration) 300 CAD (12.9) AUD (13.8) Volume & GBP (11.0) Other (12.8) FY March Mix 2016 + 18.0 Exchange 226.8 Marketing Cost Improvemen

  18. Slide 18: Structural Reform Plan Review

    STRUCTURAL REFORM PLAN REVIEW 18

  19. Slide 19: Structural Reform Plan Review

    STRUCTURAL REFORM PLAN REVIEW 【Background】  The Structural Reform Plan was formulated to enable Mazda to respond to changes in the external environment following the Lehman Brothers collapse, including declining vehicle demand and continued appreciation of the yen. Since announcing the plan in Febr

  20. Slide 20: Structural Reform Plan Review

    STRUCTURAL REFORM PLAN REVIEW 【Business innovation through SKYACTIV】  SKYACTIV models and KODO design are highly acclaimed in Japan and overseas  Innovated sales methods and promoted “right-price” sales while increasing global sales volume by 23％ (vs. FY March 2012)  SKYACTIV models now account f

  21. Slide 21: Structural Reform Plan Review

    STRUCTURAL REFORM PLAN REVIEW 【Strengthen emerging market business and establish global production footprint】  Mexico plant increased number of production models as planned and now produces Mazda3, Mazda2 and a compact car for Toyota  Powertrain plant in Thailand started production of engines in a

  22. Slide 22: Structural Reform Stage 2

    STRUCTURAL REFORM STAGE 2 @ 22

  23. Slide 23: Structural Reform Stage 2

    STRUCTURAL REFORM STAGE 2 Structural reform will lead to qualitative growth and enhanced brand value Product and R&D Global production • Continuous enhancement of • Deploy Monotsukuri Innovation globally SKYACTIV models to accelerate cost improvements • Develop & introduce GEN2 models • Maximize pla

  24. Slide 24: Structural Reform Stage 2: Product and R&D

    STRUCTURAL REFORM STAGE 2 Product and R&D  Launch 6 new carlines (including 1 derivative model) that offer driving pleasure and outstanding environmental and safety performance  Introduce the latest design, technology and equipment to all updated models. Achieve sustainable volume growth and reduc

  25. Slide 25: Global Sales and Network Enhancement

    STRUCTURAL REFORM STAGE 2 Global sales and network enhancement  Enhance sales with full line-up of SKYACTIV models  Improve net revenue (transaction price), residual value and customer retention by ensuring good penetration of the “right-price” sales policy globally - Integrate Monotsukuri and mar

  26. Slide 26: Global Production and Cost Improvement

    STRUCTURAL REFORM STAGE 2 Global production and cost improvement  Deploy Monotsukuri Innovation globally to accelerate cost improvements ‒ Monotsukuri Innovation developed in Japan will be deployed around the globe  Maximize production efficiency at key sites to support volume growth to 1.65 milli

  27. Slide 27: Strengthen Financial Base and Shareholder Returns

    STRUCTURAL REFORM STAGE 2 Strengthen financial base and shareholder returns  Generate stable profit and cash flow by 【 FY March 2019 Target 】 improving brand value through steadily Equity ratio 45％ or more increased sales and qualitative business growth ‒ Strengthen financial base (improve equity a

  28. Slide 28: Summary

    SUMMARY 【FY March 2016 Results and Structural Reform Plan Review】  Global sales volume was 1,534,000 units, up 23% over the period of the Structural Reform Plan  High acclaim for SKYACTIV products and KODO design in Japan and overseas contributed to brand value improvement  Operating profit was ¥

  29. Slide 29: 29

    29

  30. Slide 30: Appendix

    APPENDIX iq 30

  31. Slide 31: Cash Flow and Net Debt

    CASH FLOW AND NET DEBT Full Year FY March FY March Change from (Billion yen) 2015 2016 Prior FY End Cash Flow - From Operating activities 204.5 262.8 58.3 - From Investing activities (95.6) (108.1) (12.5) - Free Cash Flow 108.9 154.7 45.8 Cash and Cash Equivalents 529.1 568.7 39.6 Net Debt 171.9 48.

  32. Slide 32: Revenue by Region

    REVENUE BY REGION (Billion yen) 894.5 900 840.3 847.3 858.8 806.0 135.8 748.3 739.7 143.7 133.5 151.6 705.6 126.7 111.5 118.3 102.3 183.8 Other 152.8 166.6 600 144.0 180.6 166.6 141.0 146.2 Europe 271.7 304.6 277.3 291.0 284.6 242.4 257.7 North 247.5 300 America 282.3 270.3 271.2 227.8 222.7 244.3 2

  33. Slide 33: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 894.5 858.8 900 840.3 847.3 806.0 56.9 56.8 69.3 748.3 739.7 59.6 61.8 53.5 705.6 58.9 61.6 61.8 55.5 54.0 59.0 Other 53.7 54.0 58.9 Parts 59.9 600 775.8 721.8 728.9 727.7 Vehicles / 693.5 638.8 626.8 300 Parts for 592.0 Overseas Production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q

  34. Slide 34: Revenue Change (Full Year)

    REVENUE CHANGE FY March 2016 Full Year vs. FY March 2015 Full Year (Billion yen) FY March 2016 3,406.6 20% FY March 2015 3,033.9 Japan 1% Overseas 11% 15% 12% 12% 10% 5% 0% 0% Total Volume & Mix Exchange 34

  35. Slide 35: Revenue Change (Fourth Quarter)

    REVENUE CHANGE FY March 2016 4th Quarter vs. FY March 2015 4th Quarter (Billion yen) FY March 2016 858.8 20% FY March 2015 840.3 Japan (3)% Overseas 11 % 15% 10% 8% 5% 2% 0% (5)% (6)% (10)% Total Volume & Mix Exchange 35

  36. Slide 36: FY March 2016 Financial Metrics (Fourth Quarter)

    FY MARCH 2016 FINANCIAL METRICS Fourth Quarter FY March FY March Change from (Billion yen) 2015 2016 Prior Year Revenue 840.3 858.8 18.5 Operating profit 50.9 53.4 2.5 Ordinary profit 52.1 51.6 (0.5) Profit before tax 48.4 0.5 (47.9) Net income 27.3 10.9 (16.4) Operating ROS 6.1% 6.2% 0.1pts EPS (Ye

  37. Slide 37: Global Sales Volume and Consolidated Wholesales (Q4)

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Fourth Quarter FY March FY March Change from (000) 2015 2016 Prior Year Global sales volume Japan 82 69 (13) North America 105 93 (12) Europe 62 74 12 China 59 58 (1) Other Markets 86 95 9 Total 394 389 (5) Consolidated wholesales Japan 78 67 (11) Nort

  38. Slide 38: Operating Profit Change (Q4)

    OPERATING PROFIT CHANGE FY March 2016 4th Quarter vs. FY March 2015 4th Quarter Improvement (Billion yen) (Deterioration) Marketing Expense 75 Cost Other Volume & Improvement + 7.8 Mix FY March FY March Exchange + 16.9 2016 2015 + 7.6 53.4 50.9 50 (14.9) (14.9) 25 Change from Prior Year + 2.5 0 38

  39. Slide 39: Operating Profit Change vs. February Forecast

    OPERATING PROFIT CHANGE FY March 2016 Full Year vs. February Forecast Improvement (Deterioration) (Billion yen) 300 Feb Marketing Cost Expense Forecast Improvement Results Volume & Other 230.0 + 12.3 + 1.7 Mix Exchange 226.8 (1.0) (9.4) (6.8) 200 Change from February Forecast (3.2) 100 39

  40. Slide 40: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from (000) 2015 2016 Prior Year Volume YOY(%) Global sales volume Japan 225 232 7 3% North America 425 438 13 3% Europe 229 257 28 12% China 215 235 20 10% Other Markets 303 372 69 23% Total 1,397 1,534 137 10% Consol

  41. Slide 41: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from (000) 2016 2017 Prior Year Volume YOY(%) Global sales volume Japan 232 233 1 0% North America 438 449 11 3% Europe 257 260 3 1% China 235 238 3 1% Other Markets 372 370 (2) (1)% Total 1,534 1,550 16 1% Consolidat

  42. Slide 42: Exchange Rates

    EXCHANGE RATES Full Year FY March FY March （Yen） 2016 2017 Change US Dollar 120 110 (10) Euro 133 125 (8) Canadian Dollar 92 83 (9) Australian Dollar 89 83 (6) British Pound 181 160 (21) 42

  43. Slide 43: Capital Expenditures, Depreciation Cost, R&D Cost

    (Memo) Capital Expenditures, Depreciation Cost, R&D Cost [Capital Expenditures] [Depreciation cost] [R&D Cost] 125.0 (Billion yen) 131.0 116.6 108.4 105.0 89.2 83.0 79.0 68.9 (% of revenue) 4.3% 3.6% 3.8% 3.4% 3.2% 2.6% FY15/3 FY16/3 FY17/3 FY15/3 FY16/3 FY17/3 FY15/3 FY16/3 FY17/3 Results Results (

  44. Slide 44: 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 — FY March 2016 Earnings Presentation on 6ix