Mazda Motor Corp. · TSE:7261
Mazda Motor — H1 FY March 2016 Earnings Presentation
39 slides from Mazda Motor's earnings presentation, Nov 5, 2015
Slide 1: Fiscal Year March 2016 First Half Financial Results
FISCAL YEAR MARCH 2016 FIRST HALF FINANCIAL RESULTS Rotary-powered RX-VISION sports car concept （Displayed at Tokyo Motor Show 2015） Mazda Motor Corporation November 5, 2015 1
Slide 2: Presentation Outline
PRESENTATION OUTLINE Highlights Fiscal Year March 2016 First Half Results Fiscal Year March 2016 Full Year Forecast Progress of Key Initiatives Summary 2
Slide 3: Highlights
HIGHLIGHTS iq
Slide 4: Highlights (1) - First Half Results
HIGHLIGHTS (1) - FIRST HALF RESULTS Global sales were up 14% over the prior year to 764,000 units, a record high for the first half - New Mazda2/Demio is now on sale in most major markets and introduction of new CX-3 and new MX-5/Roadster also contributed to volume growth - Sales of updated Mazda6
Slide 5: Highlights (2) - Full Year Forecast
HIGHLIGHTS (2) - FULL YEAR FORECAST Global sales volume forecast is upwardly revised 25,000 units to 1,515,000 units Operating profit forecast is revised to ¥230 billion and net income to ¥155 billion Enhance utilization ratio at major facilities in Japan and overseas to support global sales g
Slide 6: Fiscal Year March 2016 First Half Results
FISCAL YEAR MARCH 2016 FIRST HALF RESULTS 6
Slide 7: FY March 2016 Financial Metrics
FY MARCH 2016 FINANCIAL METRICS First Half FY March FY March Change from Change from (Billion yen) 2015 2016 Prior Year Initial Forecast Amount YOY(%) Amount Revenue 1,453.9 1,700.5 246.6 17% 100.5 Operating profit 104.0 125.9 21.9 21% 30.9 Ordinary profit 107.1 121.1 14.0 13% 21.1 Profit before tax
Slide 8: Global Sales Volume
GLOBAL SALES VOLUME First Half FY March FY March Change from Change from (000) 2015 2016 Prior Year Initial Forecast Global sales volume Volume YOY(%) Volume Japan 90 120 30 33% (6) North America 226 233 7 3% (3) Europe 114 124 10 8% 10 China 94 109 15 16% 10 Other Markets 145 178 33 24% 18 Total 66
Slide 9: Japan
JAPAN Sales totaled 120,000 units, up 33% year-on-year Mazda sales grew while overall demand dropped year-on-year, and market New MX-5/Roadster share increased 1.5 points to 5.2%. Registered vehicle market share was 6.8%, First Half Sales Volume up 2.4 points year-on-year (000) 120 In addition
Slide 10: North America
NORTH AMERICA Sales were 233,000 units, up 3% year-on-year US: Sales were 164,000 units, almost unchanged year-on-year - Sales of updated CX-5 and Mazda6 remained strong. Updated CX-5 Net revenue (transaction price) improved - Launched new MX-5 and First Half Sales Volume new CX-3 (000) - Mainta
Slide 11: Europe
EUROPE Sales were 124,000, up 8% year-on-year Sales growth was driven by new Mazda2 and new CX-3 Sales in Europe excluding New CX-3 Russia were 110,000 units, up 21% year-on-year - Germany: 30,000 units, First Half Sales Volume up 11% year-on-year (000) - UK: 23,000 units, up 23% +8% 124 114 y
Slide 12: China
CHINA Sales increased 16% year- on-year to 109,000 units Despite declining demand due to the economic slowdown, achieved Mazda3/Axela year-on-year growth for 8 consecutive months SKYACTIV models First Half Sales Volume contributed to sales growth (000) +16% 109 - Sales of Mazda3 remained 100 9
Slide 13: Other Market
OTHER MARKET Sales increased by 24% year-on-year to 178,000 units Australia: Sales were up 17% to 58,000 units, and market share was 9.9%. - No.2 in sales by brand New Mazda2/Demio - CX-5 was the top-seller in its segment - New CX-3 sales were strong First Half Sales Volume ASEAN: Sales grew b
Slide 14: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2016 First Half vs. FY March 2015 First Half Improvement (Deterioration) (Billion yen) Includes lower Global sales increase material prices Cost Volume & FY March Improvement Mix Marketing 2016 150 + 15.6 Expense FY March + 26.6 Exchange Other 125.9 2015 (5.6) (3.2)
Slide 15: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2016 First Half vs. Initial Forecast Improvement (Deterioration) Includes lower (Billion yen) material prices 1st Half US Dollar +0.9 Other Result Euro +3.2 125.9 Marketing + 8.0 Other +2.4 Cost Expense Improvement 120 + 2.4 + 7.4 Exchange Volume & 1st Half Mix + 6.5
Slide 16: Fiscal Year March 2016 Full Year Forecast
FISCAL YEAR MARCH 2016 FULL YEAR FORECAST 16
Slide 17: Global Sales Volume
GLOBAL SALES VOLUME FY March 2016 Change Change from Prior from Initial First Second Full Year Forecast (000) Half Half Year Global sales volume YOY(%) Volume Japan 120 114 234 4% (6) North America 233 214 447 5% (2) Europe 124 131 255 11% 15 China 109 111 220 3% 0 Other Markets 178 181 359 18% 18 T
Slide 18: FY March 2016 Financial Metrics
FY MARCH 2016 FINANCIAL METRICS FY March 2016 Change Change First Second Full from Prior from Initial Year Forecast (Billion yen) Half Half Year Revenue 1,700.5 1,669.5 3,370.0 336.1 120.0 Operating profit 125.9 104.1 230.0 27.1 20.0 Ordinary profit 121.1 108.9 230.0 17.4 15.0 Profit before tax 116.
Slide 19: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2016 Full Year vs. FY March 2015 Full Year Improvement Global sales Includes lower (Deterioration) increase material prices (Billion yen) Volume & Cost Marketing Mix Improvement Expense + 57.0 Exchange + 31.4 Other FY March + 0.0 2016 250 FY March 230.0 2015 (25.7) 2
Slide 20: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2016 Full Year vs. Initial Forecast Improvement Global sales (Deterioration) (Billion yen) increase Cost Marketing Improvement Expense November Volume & 250 Mix Other Forecast + 15.9 + 0.0 Initial + 17.0 Exchange 230.0 Forecast 210.0 (1.6) (11.3) 200 Includes lower m
Slide 21: Progress of Key Initiatives
PROGRESS OF KEY INITIATIVES 21
Slide 22: Progress of Key Initiatives (1)
PROGRESS OF KEY INITIATIVES (1) Business Innovation by SKYACTIV [Increase and continually evolve SKYACTIV models] - Global launch of new CX-3 and new MX-5/Roadster - Unveil new CX-9 (Los Angeles in November) - Launch of updated Mazda6/Atenza and CX-5 - Evolution and wider deployment of advanced te
Slide 23: Progress of Key Initiatives (2)
PROGRESS OF KEY INITIATIVES (2) Establish global production footprints Start production of new CX-3 at AAT and engines at new powertrain plant (MPMT) in Thailand to respond to increasing sales Global alliances Started production of compact car for Toyota at Mexico plant Plan to start production
Slide 24: Summary
SUMMARY i@ 24
Slide 25: Summary
SUMMARY [First Half Results] Global sales totaled 764,000 units, up 14% over the prior year Increase and continual evolution of SKYACTIV models contributed to volume growth and net revenue improvement Progress in profitability exceeded the forecast: operating profit was ¥125.9 billion and net
Slide 26: Mazda
Mazda
Slide 27: Appendix
APPENDIX iq 27
Slide 28: Cash Flow and Net Debt
CASH FLOW AND NET DEBT FY March 2016 Change from First Second Prior FY End Total (Billion yen) Quarter Quarter Cash Flow - From Operating activities 63.0 77.7 140.7 - - From Investing activities (26.5) (20.9) (47.4) - - Free Cash Flow 36.5 56.8 93.3 - Cash and Cash Equivalents 505.2 561.6 561.6 32.5
Slide 29: Revenue by Region
REVENUE BY REGION (Billion yen) 894.5 900 840.3 806.0 135.8 748.3 739.7 705.6 133.5 126.7 111.5 118.3 Other 102.3 183.8 152.8 600 144.0 166.6 141.0 Europe 146.2 271.7 304.6 291.0 242.4 257.7 North 247.5 300 America 282.3 270.3 Japan 227.8 222.7 244.3 209.6 0 1Q 2Q 3Q 4Q 1Q 2Q FY March 2015 FY March
Slide 30: Revenue by Product
REVENUE BY PRODUCT (Billion yen) 894.5 900 840.3 56.9 806.0 748.3 59.6 61.8 739.7 53.5 705.6 58.9 55.5 54.0 59.0 Other 53.7 54.0 58.9 Parts 59.9 600 775.8 721.8 693.5 Vehicles / 638.8 626.8 300 Parts for 592.0 Overseas Production 0 1Q 2Q 3Q 4Q 1Q 2Q FY March 2015 FY March 2016 30
Slide 31: Revenue Change
REVENUE CHANGE FY March 2016 First Half vs. FY March 2015 First Half (Billion yen) FY March 2016 1,700.5 20% FY March 2015 1,453.9 Japan 5% Overseas 8% 15% 17% 13% 10% 5% 4% 0% Total Volume & Mix Exchange 31
Slide 32: Revenue Change
REVENUE CHANGE FY March 2016 Second Quarter vs. FY March 2015 Second Quarter (Billion yen) FY March 2016 894.5 FY March 2015 748.3 Japan 5% Overseas 12% 20% 20% 15% 17% 10% 5% 3% 0% Total Volume & Mix Exchange 32
Slide 33: FY March 2016 Financial Metrics
FY MARCH 2016 FINANCIAL METRICS Second Quarter Change FY March FY March from (Billion yen) 2015 2016 Prior Year Revenue 748.3 894.5 146.2 Operating profit 47.6 72.6 25.0 Ordinary profit 52.5 66.5 14.0 Profit before tax 54.2 62.4 8.2 Net income 44.4 51.5 7.1 Operating ROS 6.4% 8.1% 1.7pts EPS (Yen) 7
Slide 34: Global Sales Volume and Consolidated Wholesales
GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES Second Quarter Change FY March FY March from (000) 2015 2016 Prior Year Global sales volume Japan 50 63 13 North America 116 117 1 Europe 58 70 12 China 50 52 2 Other Markets 76 92 16 Total 350 394 44 Consolidated Wholesales Japan 49 60 11 North Americ
Slide 35: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2016 Second Half Forecast vs. First Half Result Improvement Includes lower (Deterioration) (Billion yen) Volume & material prices R&D Cost 1st Half Mix timing Result + 5.6 Exchange revision Cost 125.9 Improvement Marketing + 6.4 Expense 120 Other 2nd Half Nov. FCST (
Slide 36: Operating Profit Change
OPERATING PROFIT CHANGE FY March 2016 Second Quarter vs. FY March 2015 Second Quarter Improvement (Deterioration) (Billion yen) Global sales increase Cost FY March Improvement Other 2016 Volume & Mix Marketing + 2.4 72.6 75 + 9.1 Expense + 19.6 Exchange FY March (0.3) 2015 (5.8) 47.6 50 Includes low
Slide 37: 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 120 114 234 30 (21) 9 North America 233 214 447 7 15 22 Europe 124 131 255 10 16 26 China 109 111 220 15 (10) 5 Other
Slide 38: Key Data
KEY DATA (Billion yen) 150 Full 131.0 Year 125.0 105.0 Full 108.4 100 Year 80.0 54.6 Full 68.9 55.0 55.0 First First Year 50 Half Half 36.9 38.8 First 32.2 Half 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 * FY March 201
Slide 39: 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