Mazda Motor Corp. · TSE:7261

Mazda Motor — Q3 FY March 2015 Earnings Presentation

38 slides from Mazda Motor's earnings presentation, Feb 4, 2015

  1. Slide 1: Fiscal Year March 2015 Third Quarter Financial Results

    FISCAL YEAR MARCH 2015 THIRD QUARTER FINANCIAL RESULTS Updated Mazda CX-5 (Japanese specification model) Mazda Motor Corporation February 4, 2015 1

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2015 Nine Month Results  Fiscal Year March 2015 Forecast  Summary 2

  3. Slide 3: Highlights

    HIGHLIGHTS 3

  4. Slide 4: Highlights (1) – Nine Month Results

    HIGHLIGHTS (1) – NINE MONTH RESULTS  Global sales volume was 1,003,000 units, up 5% from the prior year  Revenue was ¥2,193.6 billion. Operating profit was ¥152.0 billion. Net income was ¥131.5 billion  Started production of the new Mazda2/Demio simultaneously at three factories in Hofu, Thailand

  5. Slide 5: Highlights (2) – Full Year Forecast

    HIGHLIGHTS (2) – FULL YEAR FORECAST  Forecast global sales volume of 1.4 million units, up 5% from the prior year  Full year profit forecast remains unchanged: Operating profit of ¥210 billion and net income of ¥160 billion  Significant updates to CX-5 and Mazda6/Atenza enhance product appeal  G

  6. Slide 6: Fiscal Year March 2015 Nine Month Results

    FISCAL YEAR MARCH 2015 NINE MONTH RESULTS 6

  7. Slide 7: Global Sales Volume

    GLOBAL SALES VOLUME Nine Month FY March FY March Change from (000) 2014 2015 Prior Year Volume YOY(%) Global sales volume Japan 162 143 (19) (12)% North America 289 320 31 11% Europe 144 167 23 16% China 141 156 15 10% Other Markets 217 217 0 0% Total 953 1,003 50 5% <Breakdown> USA 206 228 22 11% A

  8. Slide 8: FY March 2015 Financial Metrics

    FY MARCH 2015 FINANCIAL METRICS Nine Month FY March FY March Change from (Billion yen) 2014 2015 Prior Year Amount YOY(%) Revenue 1,940.2 2,193.6 253.4 13% Operating profit 124.6 152.0 27.4 22% Ordinary profit 93.1 160.5 67.4 72% Profit before tax 90.0 160.9 70.9 79% Net income 77.4 131.5 54.1 70% O

  9. Slide 9: Japan

    JAPAN  Sales were down 12% year- on-year to 143,000 units  Third quarter sales turned New Demio around and rose 2% over Nine Month Sales Volume the prior year with strong (000) sales of new Demio 162 150 143 (12)%  Sales set to increase from 100 the fourth quarter with the introduction of updated

  10. Slide 10: North America

    NORTH AMERICA  Sales rose 11% year-on- year to 320,000 units  USA: 228,000 units, up 11% year-on-year Mazda6 (North American model) - Non-fleet sales of CX-5, Nine Month Sales Volume Mazda6 and Mazda3 grew (000) 320 despite continued tough 11% 300 289 competition Canada & Canada & others 92 - Cont

  11. Slide 11: Europe

    EUROPE  Sales rose 16% year-on year to 167,000 units  CX-5 sales remained strong; and Mazda3 Mazda3 (European model) significantly contributed to Nine Month Sales Volume higher sales (000) 16% 167  Sales in Europe remained 150 144 strong, significantly outperforming growth in 100 overall demand -

  12. Slide 12: China

    CHINA  Sales rose 10% year-on year to 156,000 units  SKYACTIV models such as CX-5 (Chinese model) new Mazda3, new Mazda6, Nine Month Sales Volume and CX-5 saw strong sales (000) 10% 156 150 141  Calendar year sales grew 13% from the prior year, 100 achieving year-on-year sales growth for the firs

  13. Slide 13: Other Markets

    OTHER MARKETS  Sales were 217,000 units  Australia: Sales were down 5% year-on-year to 73,000 units due to weak demand - CX-5 remained the top seller in its segment Mazda3 (Australian model) - Remained the third best-selling brand in CY2014 (000) Nine Month Sales Volume 217 0% 217  ASEAN: Sales f

  14. Slide 14: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2015 Nine Month vs. FY March 2014 Nine Month (Billion yen) Improvement Sales increase Cost and mix (Deterioration) Improvement improvement of Marketing SKYACTIV models Exchange +13.8 Expense 200 Volume & +18.9 Other FY March Mix 2015 +38.8 (11.9) FY March 152.0 150 2

  15. Slide 15: Fiscal Year March 2015 Forecast

    FISCAL YEAR MARCH 2015 FORECAST 15

  16. Slide 16: Global Sales Volume

    GLOBAL SALES VOLUME FY March 2015 Change from First Second Full Prior Year October (000) Half Half Year Forecast YOY(%) Volume Global sales volume Japan 90 135 225 (7)% 0 North America 226 206 432 11% (8) Europe 114 114 228 10% (2) China 94 118 212 8% (13) Other Markets 145 158 303 3% 3 Total 669 73

  17. Slide 17: 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 1,453.9 1,526.1 2,980.0 287.8 11% Operating profit 104.0 106.0 210.0 27.9 15% Ordinary profit 107.1 102.9 210.0 69.3 49% Profit before tax 107.0 93.0 200.0 102.6

  18. Slide 18: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2015 Full Year vs. FY March 2014 Full Year (Billion yen) Improvement Sales increase Cost and mix (Deterioration) improvement of Improvement Marketing SKYACTIV models + 16.6 Expense Exchange Volume & + 15.0 Other Mix 250 + 54.1 (15.0) FY March 2015 US Dollar +16.7 210

  19. Slide 19: Expansion and Evolution of SKYACTIV Line-up: Mazda2/Demio, Mazda6/Atenza, CX-5

    EXPANSION AND EVOLUTION OF SKYACTIV LINE-UP 【New Mazda2/Demio】  Simultaneous launch at three factories in Hofu, Thailand, and Mexico  Sales are strong with diesel engine accounting for over 60%  High acclaim for the product and technology; Japan Car Of The Year, Good Design Award, Golden Steering

  20. Slide 20: Expansion and Evolution of SKYACTIV Line-up: Mazda CX-3

    EXPANSION AND EVOLUTION OF SKYACTIV LINE-UP 【New Compact Crossover SUV - Mazda CX-3】  New core product introduced to fast-growing compact SUV market  Production began at Hiroshima Plant in December, global launches start from late February  Forecasting sales of 150,000 units per year New CX-3 New

  21. Slide 21: Establish Global Production Footprint

    ESTABLISH GLOBAL PRODUCTION FOOTPRINT 【Mexico Plant】  Production output is increasing as planned - 100,000 units produced in 11 months since operations began - In October, production of new Mazda2 began and engine machining factory started operations - Increase production capacity to 250,000 units

  22. Slide 22: Summary

    SUMMARY 22

  23. Slide 23: Summary

    SUMMARY 【Nine Month Results】  Sales of SKYACTIV models stayed strong in global markets. Global sales volume was 1,003,000 units, up 5% from the prior year  Operating profit was ¥152.0 billion and net income was ¥131.5 billion, progressing as planned 【Full Year Forecast】  Forecast global sales vol

  24. Slide 24: 24

    24

  25. Slide 25: Appendix

    APPENDIX 25

  26. Slide 26: Cash Flow and Net Debt

    CASH FLOW AND NET DEBT FY March 2014 FY March 2015 Change from (Billion yen) Full Year Nine Month prior FY End Cash Flow - From Operating activities 136.4 108.2 - - From Investing activities (120.1) (104.9) - - Free Cash Flow 16.3 3.3 - Cash and Cash Equivalents 479.8 432.8 (47.0) Net Debt 263.0 273

  27. Slide 27: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 752.0 748.3 739.7 705.6 685.9 100.5 111.5 118.3 638.4 102.3 615.9 100.3 600 97.9 Other 106.7 151.5 166.6 141.0 146.2 141.9 126.4 Europe 109.3 226.7 242.4 257.7 North 183.9 226.8 247.5 300 194.7 America 273.3 205.2 230.2 216.9 209.6 227.8 222.7 Japan 0 1Q 2Q 3Q 4Q 1Q

  28. Slide 28: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 752.0 748.3 739.7 705.6 55.5 685.9 79.0 54.0 638.4 53.7 54.0 50.2 40.0 58.9 615.9 56.0 59.9 600 Other 49.4 59.4 51.8 55.3 Parts 633.0 638.8 626.8 300 576.3 592.0 Vehicles/ 514.7 527.1 Parts for overseas production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q FY March 2014 FY March 2015 28

  29. Slide 29: Revenue Change

    REVENUE CHANGE FY March 2015 Nine Month vs. FY March 2014 Nine Month (Billion yen) 15% FY March 2015 2,193.6 Japan (3)% FY March 2014 1,940.2 Overseas 12% 13% 10% 9% 5% 4% 0% Total Volume & Mix Exchange 29

  30. Slide 30: Revenue Change

    REVENUE CHANGE FY March 2015 Third Quarter vs. FY March 2014 Third Quarter 10% (Billion yen) FY March 2015 739.7 Japan 0% FY March 2014 685.9 Overseas 3% 8% 5% 5% 3% 0% Total Volume & Mix Exchange 30

  31. Slide 31: FY March 2015 Financial Metrics

    FY MARCH 2015 FINANCIAL METRICS Third Quarter FY March FY March Change from (Billion yen) 2014 2015 Prior Year Revenue 685.9 739.7 53.8 Operating profit 50.6 48.0 (2.6) Ordinary profit 56.8 53.4 (3.4) Profit before tax 56.1 53.9 (2.2) Net income 52.4 38.2 (14.2) Operating ROS 7.4% 6.5% (0.9)pts EPS

  32. Slide 32: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Third Quarter FY March FY March Change from (000) 2014 2015 Prior Year Global sales volume Japan 51 53 2 North America 90 94 4 Europe 47 53 6 China 62 62 0 Other Markets 72 72 0 Total 322 334 12 Consolidated Wholesales Japan 52 54 2 North America 103 1

  33. Slide 33: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2015 Third Quarter vs. FY March 2014 Third Quarter Improvement (Billion yen) (Deterioration) Cost 75 Improvement Exchange + 2.3 Marketing FY March Volume & Expense 2014 + 5.6 Other FY March Mix 2015 50.6 + 0.7 (1.0) 48.0 50 (10.2) 25 Change from Prior Year (2.6) 0 33

  34. Slide 34: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2015 Full Year vs. October Forecast Improvement (Deterioration) (Billion yen) Cost 250 Improvement Marketing October February Exchange Expense Forecast + 1.6 Forecast Volume & + 9.0 + 0.0 Other 210.0 Mix 210.0 200 (4.7) (5.9) 150 Change from October Forecast + 0.0 10

  35. Slide 35: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Change from FY March 2015 Change from Prior Year Oct. Forecast First Second Full First Second Full Full (000) Half Half Year Half Half Year Year Global sales volume Japan 90 135 225 (21) 2 (19) 0 North America 226 206 432 27 14 41 (8) Europe 114 114 22

  36. Slide 36: Key Data

    KEY DATA (Billion yen) 150.0 150 Full Year 133.2 Full 110.0 94.6 Year 99.4 100 94.6 Nine 79.9 Month 73.8 70.0 Nine 70.3 Full Month Year 57.7 49.9 50 Nine 40.8 40.8 Month 0 FY3/14 FY3/15 FY3/14 FY3/15 FY3/14 FY3/15 Capital Depreciation R&D cost Spending * Data for FY March 2015 Full Year are forecast

  37. Slide 37: Dividend and Shares

    DIVIDEND AND SHARES Dividend Forecast  FY March 2015 year-end dividend ¥10* per share (Plan) * After share consolidation  Work to provide stable and steadily increasing dividends Consolidation of shares and change in the number of shares per share unit (Effective date was August 1, 2014)  Consoli

  38. Slide 38: 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

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