Mazda Motor Corp. · TSE:7261

Mazda Motor — Q1 FY March 2018 Earnings Presentation

31 slides from Mazda Motor's earnings presentation, August 2017

  1. Slide 1: Fiscal Year March 2018 First Quarter Financial Results

    FISCAL YEAR MARCH 2018 FIRST QUARTER FINANCIAL RESULTS

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2018 First Quarter Results  Fiscal Year March 2018 Full Year Forecast  Structural Reform Stage 2 Progress of Key Initiatives Mazda Motor Corporation 1

  3. Slide 3: Highlights

    HIGHLIGHTS 【First Quarter Results】  Global sales were up 1% from the prior year to 377,000 units, a new record for the first quarter  Revenue was ¥802.1 billion, operating profit was ¥39.9 billion and net income was ¥36.6 billion (up ¥15.4 billion from the prior year)  Now on sale in Japan, North

  4. Slide 4: Fiscal Year March 2018 First Quarter Results

    FISCAL YEAR MARCH 2018 FIRST QUARTER RESULTS Mazda Motor Corporation 3

  5. Slide 5: FY March 2018 Global Sales Volume

    FY MARCH 2018 GLOBAL SALES VOLUME First Quarter FY March FY March Change from (000) 2017 2018 Prior Year Volume YOY(%) Global sales volume Japan 39 41 2 5% North America 113 106 (7) (6)% Europe 66 64 (2) (3)% China 59 71 12 20% Other Markets 98 94 (3) (3)% Total 375 377 2 1% <Breakdown> USA 81 73 (8

  6. Slide 6: Japan

    JAPAN  Sales were 41,000 units, up 5% year on year  Market share was 3.4%, down 0.2 point year on year. Registered vehicle market share Mazda2 was 4.1%, down 0.1 point  Launched Mazda2 with advanced safety technology as standard First Quarter Sales Volume equipment, improving sales (000) momentum

  7. Slide 7: North America

    NORTH AMERICA  Sales were 106,000 units, down 6% year on year  USA: Sales were 73,000 units, down 10% year on year - Fleet sales are the main cause of the year-on-year decrease CX-9 - Crossover sales retained momentum but the passenger car First Quarter Sales Volume market remains tough (000) - Sa

  8. Slide 8: Europe

    EUROPE  Sales were 64,000 units, down 3% year on year  New CX-5 launches began in May and sales are off to a good start  Sales in Europe excluding Russia CX-3 were 58,000 units, down 5% year on year - Germany: 18,000 units, up 8% First Quarter Sales Volume year on year (000) 80 - UK: 7,000 units,

  9. Slide 9: China

    CHINA  Sales were 71,000 units, up 20% year on year  Achieved record sales in the first quarter  Continued momentum of Mazda3 Mazda3 sales and CX-4 led sales  Mazda6 continues to contribute First Quarter Sales Volume to sales volume (000) 100 71 20% 59 50 0 FY March 2017 MY March 2018 Mazda Moto

  10. Slide 10: Other Markets

    OTHER MARKETS  Sales were 94,000 units, down 3% year on year  Australia: Sales were 31,000 units, up 2% year on year - Achieved record sales in the first New CX-5 quarter - Mazda remains the country’s second highest-selling brand First Quarter Sales Volume (000)  ASEAN: Sales were 26,000 units, 9

  11. Slide 11: FY March 2018 Financial Metrics

    FY MARCH 2018 FINANCIAL METRICS First Quarter FY March FY March Change from (Billion yen) 2017 2018 Prior Year Amount YOY(%) Revenue 776.2 802.1 25.9 3% Operating profit 52.4 39.9 (12.5) (24)% Ordinary profit 44.9 52.4 7.5 17% Profit before tax 39.4 50.5 11.1 28% Net income 21.2 36.6 15.4 72% Operat

  12. Slide 12: FY March 2018 Operating Profit Change

    FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 First Quarter vs FY March 2017 First Quarter Improvement (Billion yen) (Deterioration) Impact of reduced wholesale volume in US and other markets, etc. Includes hike in Improvement of FY March raw material quality-related 2017 prices costs 52.4 Vol

  13. Slide 13: Fiscal Year March 2018 Full Year Forecast

    FISCAL YEAR MARCH 2018 FULL YEAR FORECAST Mazda Motor Corporation 12

  14. Slide 14: FY March 2018 Global Sales Volume

    FY MARCH 2018 GLOBAL SALES VOLUME Full Year FY March FY March Change from (000) 2017 2018 Prior Year Volume YOY(%) Global sales volume Japan 203 213 11 5% North America 429 454 25 6% Europe 262 267 5 2% China 292 282 (10) (3)% Other Markets 373 384 10 3% Total 1,559 1,600 41 3% <Breakdown> USA 302 3

  15. Slide 15: FY March 2018 Financial Metrics

    FY MARCH 2018 FINANCIAL METRICS Full Year FY March FY March Change from (Billion yen) 2017 2018 Prior Year Amount YOY(%) Revenue 3,214.4 3,350.0 135.6 4% Operating profit 125.7 150.0 24.3 19% Ordinary profit 139.5 163.0 23.5 17% Profit before tax 128.4 150.0 21.6 17% Net income 93.8 100.0 6.2 7% Ope

  16. Slide 16: Structural Reform Stage 2 Progress of Key Initiatives

    STRUCTURAL REFORM STAGE 2 PROGRESS OF KEY INITIATIVES Mazda Motor Corporation 15

  17. Slide 17: Progress of Key Initiatives: Product and R&D, Sales and Network

    PROGRESS OF KEY INITIATIVES Product and R&D  Expand the SKYACTIV lineup - Shift sales of new CX-5 into high gear with global rollout - Introduce new three-row crossover SUV, Mazda CX-8, in Japan  Planning to announce new long-term vision for technology development Global Sales and Network Enhancem

  18. Slide 18: Progress of Key Initiatives: Production, Cost, Financial Base

    PROGRESS OF KEY INITIATIVES Global Production and Cost Improvement  Support volume growth by enhancing production flexibility of crossover models ⁃ Expand production capacity of crossover models at Hiroshima Plant （Aug. 2017) ⁃ Start new CX-5 production in Hofu Plant（from Oct. 2017） Strengthen Fina

  19. Slide 19: Mazda Motor Corporation

    Mazda Motor Corporation 18

  20. Slide 20: Appendix

    APPENDIX Mazda Motor Corporation 19

  21. Slide 21: Cash Flow and Net Debt

    CASH FLOW AND NET DEBT FY March 2017 FY March 2018 Change from (Billion yen) Full Year 1Q prior FY end Cash Flow - From operating activities 161.1 35.5 - - From investing activities (63.8) (36.1) - - Free cash flow 97.3 (0.5) - Cash and Cash Equivalents 526.9 515.7 (11.2) Net Debt (35.4) (20.7) (14.

  22. Slide 22: Revenue by Region

    REVENUE BY REGION (Billion yen) 900 865.8 802.3 802.1 776.2 770.1 144.8 130.4 136.4 Other 125.6 132.7 149.6 600 Europe 140.6 155.8 154.1 145.4 264.0 North 236.0 291.6 281.4 288.3 America 300 307.4 Japan 215.1 256.0 239.7 221.6 0 1Q 2Q 3Q 4Q 1Q FY March 2017 FY March 2018 Mazda Motor Corporation 21

  23. Slide 23: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 865.8 900 802.3 802.1 776.2 66.4 770.1 58.0 63.2 58.2 Other 56.1 56.4 58.5 61.7 57.4 57.4 Parts 600 Vehicle/ 736.2 Parts for 662.8 656.3 685.8 682.2 300 Overseas Production 0 1Q 2Q 3Q 4Q 1Q FY March 2017 FY March 2018 Mazda Motor Corporation 22

  24. Slide 24: Revenue Change

    REVENUE CHANGE FY March 2018 1st Quarter vs. FY March 2017 1st Quarter (Billion yen) FY March 2018 802.1 Japan 1% FY March 2017 776.2 Overseas 0% 5% 3% 2% 2% 0% Total Volume & Mix Exchange Mazda Motor Corporation 23

  25. Slide 25: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES First Quarter FY March FY March Change from (000) 2017 2018 Prior Year Global sales volume Volume YOY(%) Japan 39 41 2 5% North America 113 106 (7) (6)% Europe 66 64 (2) (3)% China 59 71 12 20% Other Markets 98 94 (3) (3)% Total 375 377 2 1% Consolidat

  26. Slide 26: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Full Year FY March FY March Change from (000) 2017 2018 Prior Year Global sales volume Volume YOY(%) Japan 203 213 11 5% North America 429 454 25 6% Europe 262 267 5 2% China 292 282 (10) (3)% Other Markets 373 384 10 3% Total 1,559 1,600 41 3% Consoli

  27. Slide 27: FY March 2018 Operating Profit Change

    FY MARCH 2018 OPERATING PROFIT CHANGE FY March 2018 Full Year vs. FY March 2017 Full Year Improvement (Billion Yen) (Deterioration) Including price Volume growth from hike of raw global launch of the new materials CX-5 Cost FY March Improvement Other 2018 +10.0 R&D Cost +12.4 150.0 Volume & 150 Exch

  28. Slide 28: Exchange Rates

    EXCHANGE RATES Full Year FY March FY March （Yen） 2017 2018 Change US Dollar 108 108 0 Euro 119 118 (1) Canadian Dollar 83 83 0 Australian Dollar 82 83 1 British Pound 142 138 (4) Mazda Motor Corporation 27

  29. Slide 29: Crossover Vehicle Ratio

    CROSSOVER VEHICLE RATIO （000 units） 1,500 Crossover vehicles 34% 39% 12% 28% 27% 21% 1,000 Passenger 500 vehicles, and others - FY March 2012 2013 2014 2015 2016 2017 2018 Global Sales 1,247 1,235 1,331 1,397 1,534 1,559 1,600 Volume （000 units） Results Plan Mazda Motor Corporation 28

  30. Slide 30: Key Data

    KEY DATA (Billion Yen) 150 140.0 Full 126.9 120.0 Year Full 94.4 100 Year Full 87.0 82.4 Year 50 35.1 25.1 1Q 28.9 21.6 1Q 19.5 1Q 13.3 0 FY March 2017 2018 2017 2018 2017 2018 Capital Depreciation R&D Cost Expenditure Cost Mazda Motor Corporation 29

  31. Slide 31: 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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