Mazda Motor Corp. · TSE:7261

Mazda Motor — H1 FY March 2015 Earnings Presentation

38 slides from Mazda Motor's earnings presentation, Oct 31, 2014

  1. Slide 1: Fiscal Year March 2015 First Half Financial Results

    FISCAL YEAR MARCH 2015 FIRST HALF FINANCIAL RESULTS New Mazda Demio Mazda Motor Corporation October 31, 2014 1

  2. Slide 2: Presentation Outline

    PRESENTATION OUTLINE  Highlights  Fiscal Year March 2015 First Half Results  Fiscal Year March 2015 Forecast  Progress of Structural Reform Plan  Summary 2

  3. Slide 3: Highlights

    HIGHLIGHTS 3

  4. Slide 4: Highlights (1) – First Half Results

    HIGHLIGHTS (1) – FIRST HALF RESULTS  Global sales volume was 669,000 units, up 6% from the prior year  Combined with the continuing success of CX-5, new Mazda3/Axela contributed to sales globally  Revenue was ¥1,453.9 billion. Operating profit was ¥104 billion. Net income was ¥93.3 billion.  Int

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

    HIGHLIGHTS (2) – FULL YEAR FORECAST  Forecast global sales volume of 1,420,000 units, up 7% from the prior year  Full year profit forecast remains unchanged: operating profit of ¥210 billion and net income of ¥160 billion  Introduce new Mazda2/Demio in major markets including Australia, ASEAN and

  6. Slide 6: Fiscal Year March 2015 First Half Results

    FISCAL YEAR MARCH 2015 FIRST HALF RESULTS 6

  7. Slide 7: Global Sales Volume

    GLOBAL SALES VOLUME First Half FY March FY March Change from Change from (000) 2014 2015 Prior Year July Forecast Volume YOY(%) Volume Global sales volume Japan 111 90 (21) (18)% (4) North America 199 226 27 14% (1) Europe 97 114 17 18% 5 China 79 94 15 19% (6) Other Markets 145 145 0 (1)% 3 Total 6

  8. Slide 8: FY March 2015 Financial Metrics

    FY MARCH 2015 FINANCIAL METRICS First Half FY March FY March Change from Change from (Billion yen) 2014 2015 Prior Year July Forecast Amount YOY(%) Amount Revenue 1,254.3 1,453.9 199.6 16% 63.9 Operating profit 74.0 104.0 30.0 41% 4.0 Ordinary profit 36.3 107.1 70.8 195% 9.1 Profit before tax 33.9 1

  9. Slide 9: Japan

    JAPAN  Sales were down 18% year-on- year to 90,000 units  As strong-selling Axela partially offset the impact of the consumption tax hike, year-on- New Demio year sales comparison is in an improving trend (000) First Half Sales Volume 111  Orders for new Demio launched 100 in September are strong

  10. Slide 10: North America

    NORTH AMERICA  Sales rose 14% year-on-year to 226,000 units  USA: 163,000 units, up 15% year-on-year New Mazda3 (North American model) - Sales grew with a balanced mix of CX-5, Mazda6, and new (000) First Half Sales Volume Mazda3 14% 226 - Continued to suppress fleet 200 199 Canada & sales Canada

  11. Slide 11: Europe

    EUROPE  Sales rose 18% year-on-year to 114,000 units  New Mazda3 made a significant contribution to increased sales, CX-5 sales remained strong CX-5 (European model)  Sales in Europe (excluding First Half Sales Volume (000) Russia, etc.) rose 21% year-on- 18% 114 year, significantly 100 97 outper

  12. Slide 12: China

    CHINA  Sales were up 19% year-on- year to 94,000 units  New Mazda3 Axela and new New Mazda3Axela Mazda6 Atenza launched in May saw strong sales First Half Sales Volume (000) 100 19% 94  CX-5 maintained strong sales 79 momentum since its launch one year ago and contributed 50 to sales 0 FY March 2

  13. Slide 13: Other Markets

    OTHER MARKETS  Sales were 145,000 units  Australia: Sales were down 4% year-on-year to 49,000 units due to weak demand - CX-5 remained the top seller in its New Mazda3 (Australian model) segment (000) First Half Sales Volume - New Mazda3 sales were strong 150 145 145  ASEAN: Sales were down 5% ye

  14. Slide 14: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2015 First Half vs. FY March 2014 First Half (Billion yen) Improvement Sales increase Cost (Deterioration) and mix Improvement Marketing improvement of SKYACTIV models + 11.5 Expense Exchange Volume & + 13.3 Other FY March Mix (10.9) 2015 + 38.1 104.0 100 FY March (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 (000) 1st Half 2nd Half Full Year Prior Year July Forecast YOY(%) Volume Global sales volume Japan 90 135 225 (8)% (5) North America 226 214 440 13% 0 Europe 114 116 230 11% 10 China 94 131 225 15% (5) Other Markets 145 155 300 2% 0 Total 669 751 1,420 7

  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 1,476.1 2,930.0 237.8 9% 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 1

  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 and Cost mix improvement of Improvement (Deterioration) SKYACTIV models Marketing + 15.0 Expense Volume & Exchange Mix + 6.0 Other 250 + 60.0 (15.0) FY March 2015 US Dollar +3.0 210.0

  19. Slide 19: Progress of Structural Reform Plan

    PROGRESS OF STRUCTURAL REFORM PLAN 19

  20. Slide 20: Progress of Structural Reform Plan: Business Innovation by SKYACTIV Technology

    PROGRESS OF STRUCTURAL REFORM PLAN Business Innovation by SKYACTIV Technology  Enhancing line-up of core models - New Mazda2/Demio orders in Japan are strong To be introduced in Australia, ASEAN, Europe, etc. - Product upgrades for CX-5 and Mazda6/Atenza to maintain and further strengthen the compe

  21. Slide 21: Progress of Structural Reform Plan: Monotsukuri Innovation

    PROGRESS OF STRUCTURAL REFORM PLAN Accelerate further cost improvement through Monotsukuri Innovation  Maintain and improve quality and promote cost improvement on a global basis for new products following new Mazda2/Demio Reinforce business in emerging countries and establish global production foo

  22. Slide 22: Summary

    SUMMARY 22

  23. Slide 23: Summary

    SUMMARY [First Half Results]  SKYACTIV models maintain global sales momentum. Global sales volume was 669,000 units, up 6% from the prior year  Good progress in profitability: operating profit ¥104 billion and net income ¥93.3 billion [Full Year Forecast]  Forecast operating profit of ¥210 billio

  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 2015 First Second First Change from (Billion yen) Quarter Quarter Half Prior FY End Cash Flow - From Operating activities 38.1 44.5 82.6 - - From Investing activities (36.5) (26.7) (63.2) - - Free Cash Flow 1.6 17.8 19.4 - Cash and Cash Equivalents 476.6 488.8 488.8 9

  27. Slide 27: Revenue by Region

    REVENUE BY REGION (Billion yen) 752.0 748.3 705.6 685.9 100.5 111.5 638.4 102.3 615.9 100.3 600 97.9 Other 106.7 151.5 166.6 146.2 141.9 126.4 Europe 109.3 226.7 242.4 North 183.9 226.8 247.5 300 194.7 America 273.3 205.2 230.2 216.9 209.6 227.8 Japan 0 1Q 2Q 3Q 4Q 1Q 2Q FY March 2014 FY March 2015

  28. Slide 28: Revenue by Product

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

  29. Slide 29: Revenue Change

    REVENUE CHANGE FY March 2015 First Half vs. FY March 2014 First Half (Billion yen) FY March 2015 1,453.9 FY March 2014 1,254.3 Japan (3)% Overseas 16% 15% 16% 13% 10% 5% 3% 0% Total Volume & Mix Exchange 29

  30. Slide 30: Revenue Change

    REVENUE CHANGE FY March 2015 Second Quarter vs. FY March 2014 Second Quarter (Billion yen) FY March 2015 748.3 FY March 2014 638.4 Japan (3)% Overseas 17% 15% 17% 14% 10% 5% 3% 0% Total Volume & Mix Exchange 30

  31. Slide 31: FY March 2015 Financial Metrics

    FY MARCH 2015 FINANCIAL METRICS Second Quarter FY March FY March Change from (Billion yen) 2014 2015 Prior Year Revenue 638.4 748.3 109.9 Operating profit 37.5 47.6 10.1 Ordinary profit 27.9 52.5 24.6 Profit before tax 25.7 54.2 28.5 Net income 19.5 44.4 24.9 Operating ROS 5.9% 6.4% 0.5pts EPS (Yen)

  32. Slide 32: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Second Quarter FY March FY March Change from (000) 2014 2015 Prior Year Global sales volume Japan 61 50 (11) North America 104 116 12 Europe 51 58 7 China 42 50 8 Other Markets 72 76 4 Total 330 350 20 Consolidated Wholesales Japan 62 51 (11) North Ame

  33. Slide 33: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2015 Second Quarter vs. FY March 2014 Second Quarter Improvement (Billion yen) (Deterioration) Cost 75 Improvement Marketing Exchange + 4.7 Expense Volume & + 9.6 Other FY March Mix 2015 + 16.1 (8.9) 50 FY March 47.6 2014 (11.4) 37.5 25 Change from Prior Year + 10.1

  34. Slide 34: Operating Profit Change

    OPERATING PROFIT CHANGE FY March 2015 Full Year vs. July Forecast Improvement (Deterioration) (Billion yen) Cost 250 Improvement Marketing July Expense Oct. Forecast Volume & Exchange Forecast + 5.0 + 0.0 Other Mix + 9.0 210.0 + 0.0 210.0 200 (14.0) 150 Change from July Forecast +0 100 34

  35. Slide 35: Global Sales Volume and Consolidated Wholesales

    GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Change from FY March 2015 Change from Prior Year Jul. 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) (5) North America 226 214 440 27 22 49 0 Europe 114 116 23

  36. Slide 36: Key Data

    KEY DATA (Billion yen) 150.0 150 Full Year 133.2 Full 110.0 Year 99.4 100 70.0 Full First Year 57.7 First 55.0 54.6 50 Half 48.7 Half 49.4 First 32.2 26.8 Half 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 36

  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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