Mazda Motor Corp. · TSE:7261

Mazda Motor — FY March 2015 Earnings Presentation

44 slides from Mazda Motor's earnings presentation, Apr 24, 2015

  1. Slide 1: Fiscal Year March 2015 Financial Results

    FISCAL YEAR MARCH 2015 FINANCIAL RESULTS New Mazda CX-3 (Japanese specification model) Mazda Motor Corporation April 24, 2015 1

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2015 Results  Fiscal Year March 2016 Forecast  Progress of Structural Reform Plan  Structural Reform Stage 2 2

  3. Slide 3: Highlights

    HIGHLIGHTS 3

  4. Slide 4: Highlights (1) – FY March 2015 Results

    HIGHLIGHTS (1) – FY MARCH 2015 RESULTS  Revenue was ¥3,033.9 billion. Operating profit was ¥202.9 billion. Net income was ¥158.8 billion  Global sales volume was 1,397,000 units, up 5% from the prior year  The Axela/Mazda3 made full-year contribution to sales, and the new Demio/Mazda2 is seeing s

  5. Slide 5: Highlights (2) – FY March 2016 Forecast

    HIGHLIGHTS (2) – FY MARCH 2016 FORECAST  Forecast revenue of ¥3,250 billion, operating profit of ¥210 billion and net income of ¥140 billion  Projected global sales of 1.49 million units, up 7% year-on- year  The new Demio/Mazda2 and updated CX-5 and Atenza/ Mazda6 will make their first full-year

  6. Slide 6: Fiscal Year March 2015 Results

    FISCAL YEAR MARCH 2015 RESULTS 6

  7. Slide 7: FY March 2015 Financial Metrics

    FY MARCH 2015 FINANCIAL METRICS Full Year (Reference) FY March FY March Change from FY March 2015 (Billion yen) 2014 2015 Prior Year Feb. Forecast Amount YOY(%) Revenue 2,692.2 3,033.9 341.7 13% 2,980.0 Operating profit 182.1 202.9 20.8 11% 210.0 Ordinary profit 140.7 212.6 71.9 51% 210.0 Profit bef

  8. Slide 8: Global Sales Volume

    GLOBAL SALES VOLUME Full Year (Reference) FY March FY March Change from FY March 2015 (000) 2014 2015 Prior Year Feb. Forecast Global sales volume Volume YOY(%) Japan 244 225 (19) (8)% 225 North America 391 425 34 9% 432 Europe 207 229 22 11% 228 China 196 215 19 9% 212 Other Markets 293 303 10 3% 3

  9. Slide 9: Japan

    JAPAN  Sales were down 8% year-on-year to 225,000 units  Sales declined significantly in the first half due to consumption tax hike. However, with the introduction of new Demio sales in the second New CX-3 half turned around and exceeded those in the same period of the prior Full Year Sales Volume

  10. Slide 10: North America

    NORTH AMERICA  Sales increased 9% year-on- year to 425,000 units  USA: 306,000 units, up 8% year-on-year - Main carlines such as CX-5, Mazda6 and Mazda3 led growth Updated Mazda6 (US model) - Continued policy of “right-price” (000) Full Year Sales Volume sales 9% 425 - Highest US sales volume in 2

  11. Slide 11: Europe

    EUROPE  Sales rose 11% year-on-year to 229,000 units  Mazda3 made a big contribution to sales increase and CX-5 continued to sell New Mazda2 (European model) strongly Full Year Sales Volume  Year-on-year growth in Mazda’s (000) 11% 229 European sales outpaced 207 overall demand growth 200 - Germa

  12. Slide 12: China

    CHINA  Sales increased 9% year-on- year to 215,000 units  New Mazda3 and CX-5 led the strong sales New Mazda3Axela  New Mazda6 continued sales Full Year Sales Volume (000) policy of not relying on 9% 215 discounts despite intensifying 200 196 competition in the segment  Continued to implement br

  13. Slide 13: Other Market

    OTHER MARKET  Sales were 303,000 units  Australia: Sales were 101,000 units and share was 9.0% - Mazda ranked third highest-selling brand - CX-5 remained top seller in its New Mazda2 (Thai model) segment Full Year Sales Volume - Sales of new CX-3 started in March (000) 300 293 3% 303  ASEAN: Sale

  14. Slide 14: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2015 Full Year vs. FY March 2014 Full Year Improvement (Billion yen) (Deterioration) Sales increase and mix improvement of SKYACTIV models Cost Improvement Marketing 300 Exchange Volume & + 17.5 Expense Mix + 17.0 Other FY March FY March + 48.6 2015 2014 (15.0) 202.9

  15. Slide 15: Fiscal Year March 2016 Forecast

    FISCAL YEAR MARCH 2016 FORECAST 15

  16. Slide 16: Global Sales Volume

    GLOBAL SALES VOLUME Change from FY March 2016 Prior Year First Second Full Volume YOY(%) (000) Half Half Year Global sales volume Japan 126 114 240 15 7% North America 236 213 449 24 6% Europe 114 126 240 11 5% China 99 121 220 5 3% Other Markets 160 181 341 38 13% Total 735 755 1,490 93 7% <Breakdo

  17. Slide 17: FY March 2016 Financial Metrics

    FY MARCH 2016 FINANCIAL METRICS Change from FY March 2016 Prior Year First Second Full Amount YOY(%) (Billion yen) Half Half Year Revenue 1,600.0 1,650.0 3,250.0 216.1 7% Operating profit 95.0 115.0 210.0 7.1 4% Ordinary profit 100.0 115.0 215.0 2.4 1% Profit before tax 95.0 110.0 205.0 (4.3) (2)% N

  18. Slide 18: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2016 Full Year vs. FY March 2015 Full Year (Billion yen) Improvement Sales increase and mix improvement of (Deterioration) SKYACTIV models Volume & Mix 250 + 40.0 Exchange Cost Marketing Improvement Expense FY March FY March + 15.5 + 0.0 Other 2016 2015 210.0 202.9 2

  19. Slide 19: Progress of Structural Reform Plan

    PROGRESS OF STRUCTURAL REFORM PLAN 19

  20. Slide 20: Progress of Structural Reform Plan

    PROGRESS OF STRUCTURAL REFORM PLAN Business innovation by SKYACTIV 85% Or higher 75%  About 20% sales growth since FY March 2012 50%  Launches of SKYACTIV products are on track. 30% Ratio of SKYACTIV models in FY March 2016 149.0 will exceed 85% 5% 133.1 139.7  SKYACTIV products and KODO Design a

  21. Slide 21: Progress of Structural Reform Plan

    PROGRESS OF STRUCTURAL REFORM PLAN Reinforce business in emerging countries and establish global production footprint  Full-scale operations underway at Mexico Plant. Produced 140,000 [Mexico plant production volume] units in FY March 2015, expect to (units) 48,000 produce 230,000 units in FY 41,00

  22. Slide 22: Structural Reform Stage 2

    STRUCTURAL REFORM STAGE 2 (FY March 2017- FY March 2019) 22

  23. Slide 23: Structural Reform Stage 2 (FY3/17–FY3/19)

    STRUCTURAL REFORM STAGE 2 (FY3/17~ FY3/19)  Structural reforms enter stage of qualitative growth and brand value improvement  Strengthen business fundamentals including brand, sales networks and global production efficiency, while maintaining sales volume growth through the introduction of new and

  24. Slide 24: Structural Reform Stage 2 Summary

    STRUCTURAL REFORM STAGE 2 SUMMARY Structural Reform Next Mid-term Structural Reform Plan Stage 2 Plan (FY3/13~FY3/16) (FY3/17~FY3/19) (FY3/20~ ) Change of business structure by Qualitative growth / Brand Further sustainable structural reforms value improvement growth  Continuous evolution of SKYACT

  25. Slide 25: Product and R&D

    PRODUCT AND R&D  Launch 5 carlines (4 new models and 1 derivative model) that offer driving pleasure and outstanding environmental and safety performance  Realize optimal common architecture through global bundled product planning that encompasses development, manufacturing and sourcing 【Continuou

  26. Slide 26: Strengthen Global Sales and Sales Network

    STRENGTHEN GLOBAL SALES AND SALES NETWORK  Reinforce sales with full lineup of SKYACTIV products  Drive reforms at sales frontline to ensure penetration of sales strategy that enhances brand value 【Reinforce sales with full lineup of SKYACTIV products】 • Realize brand showroom • Greater emphasis o

  27. Slide 27: Global Production and Cost Improvement

    GLOBAL PRODUCTION AND COST IMPROVEMENT  Accelerate cost improvements through global adoption of Monotsukuri Innovation  Pursue maximum production efficiency and maximum utilization of key production sites to support growth (Expand production 11% from 1.49 million units to 1.65 million units) 【Key

  28. Slide 28: Reinforce Financial Structure and Shareholder Returns

    REINFORCE FINANCIAL STRUCTURE AND SHAREHOLDER RETURNS  Establish a robust financial structure for stable and sustainable growth  Move quickly from a net debt position to a net cash position, and raise equity ratio to around 50% by FY March 2019  Raise dividend payout ratio gradually in line with

  29. Slide 29: 29

    29

  30. Slide 30: Appendix

    APPENDIX 30

  31. Slide 31: Cash Flow and Net Debt

    CASH FLOW AND NET DEBT Full Year Change from (Billion yen) FY March 2014 FY March 2015 Prior FY End Cash Flow - From Operating activities 136.4 204.5 - - From Investing activities (120.1) (95.6) - - Free Cash Flow 16.3 108.9 - Cash and Cash Equivalents 479.8 529.1 49.3 Net Debt 263.0 171.9 91.1 Net

  32. Slide 32: Revenue by Region

    REVENUE BY REGION (Billion yen) 840.3 752.0 748.3 739.7 133.5 705.6 685.9 100.5 111.5 638.4 118.3 615.9 102.3 100.3 152.8 600 97.9 Other 106.7 151.5 166.6 141.0 141.9 146.2 126.4 Europe 109.3 271.7 226.7 North 226.8 247.5 242.4 257.7 183.9 300 America 194.7 273.3 282.3 Japan 205.2 230.2 216.9 209.6

  33. Slide 33: Revenue by Product

    REVENUE BY PRODUCT (Billion yen) 840.3 752.0 59.6 748.3 739.7 705.6 58.9 685.9 79.0 55.5 54.0 638.4 53.7 54.0 615.9 50.2 40.0 58.9 56.0 59.4 59.9 600 Other 49.4 51.8 55.3 Parts 721.8 633.0 638.8 626.8 300 Vehicles/ 576.3 592.0 Parts for 514.7 527.1 overseas production 0 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q FY Ma

  34. Slide 34: Revenue Change

    REVENUE CHANGE FY March 2015 Full Year vs. FY March 2014 Full Year (Billion yen) FY March 2015 3,033.9 15% FY March 2014 2,692.2 Japan (1)% Overseas 11 % 13% 10% 10% 5% 3% 0% Total Volume & Mix Exchange 34

  35. Slide 35: Revenue Change

    REVENUE CHANGE FY March 2015 Fourth Quarter vs. FY March 2014 Fourth Quarter (Billion yen) 15% FY March 2015 840.3 FY March 2014 752.0 Japan 1% Overseas 8% 12% 10% 9% 5% 3% 0% Total Volume & Mix Exchange 35

  36. Slide 36: FY March 2015 Financial Metrics

    FY MARCH 2015 FINANCIAL METRICS Fourth Quarter FY March FY March Change from (Billion yen) 2014 2015 Prior Year Revenue 752.0 840.3 88.3 Operating profit 57.5 50.9 (6.6) Ordinary profit 47.6 52.1 4.5 Profit before tax 7.4 48.4 41.0 Net income 58.3 27.3 (31.0) Operating ROS 7.6% 6.1% (1.5)pts EPS* (Y

  37. Slide 37: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Fourth Quarter FY March FY March Change from (000) 2014 2015 Prior Year Global sales volume Japan 82 82 0 North America 102 105 3 Europe 63 62 (1) China 55 59 4 Other Markets 76 86 10 Total 378 394 16 Consolidated Wholesales Japan 82 81 (1) North Ameri

  38. Slide 38: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2015 Fourth Quarter vs. FY March 2014 Fourth Quarter Improvement (Billion yen) (Deterioration) Cost Volume & Improvement Marketing Mix 75 FY March Exchange Expense + 9.8 + 3.7 Other 2014 FY March 57.5 (1.9) (3.1) 2015 50.9 50 (15.1) 25 Change from Prior Year (6.6) 0

  39. Slide 39: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2015 Full Year vs. February Forecast Improvement (Billion yen) (Deterioration) 250 February Exchange Cost Marketing Forecast Volume & Improvement Expense Actual 210.0 Mix Other + 2.0 + 0.9 0.0 202.9 200 (5.5) (4.5) 150 Change from February Forecast (7.1) 100 39

  40. Slide 40: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES (Reference) FY March 2015 Change from Prior Year FY March '15 First Second Full First Second Full Feb. (000) Half Half Year Half Half Year Forecast Global sales volume Japan 90 135 225 (21) 2 (19) 225 North America 226 199 425 27 7 34 432 Europe 114 11

  41. Slide 41: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES FY March 2016 Change from Prior Year First Second Full First Second Full (000) Half Half Year Half Half Year Global sales volume Japan 126 114 240 36 (21) 15 North America 236 213 449 10 14 24 Europe 114 126 240 0 11 11 China 99 121 220 5 0 5 Other Mar

  42. Slide 42: Key Data

    KEY DATA (Billion yen) 150 131.0 125.0 105.0 108.4 100 80.0 68.9 50 0 FY March FY March FY March FY March FY March FY March 2015 2016 2015 2016 2015 2016 Capital Depreciation R&D cost Spending * Data for FY March 2016 are forecast 42

  43. Slide 43: Capital Spending and R&D Cost

    CAPITAL SPENDING AND R&D COST Capital Spending  Invested in overseas production facilities in (Billion yen, %) FY March 2014 and FY March 2015 to establish 133.2 131.0 global manufacturing footprint 1,05.0  Invest in new products and facility maintenance/updates in and after FY March 78.0 77.2 201

  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

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