FISCAL YEAR MARCH 2014 THIRD QUARTER FINANCIAL ......FISCAL YEAR MARCH 2014 FORECAST FY MARCH 2014...

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1 New Mazda Axela Sport XD FISCAL YEAR MARCH 2014 THIRD QUARTER FINANCIAL RESULTS Mazda Motor Corporation February 5, 2014 2 Highlights Fiscal Year March 2014 Nine Month Results Fiscal Year March 2014 Full Year Forecast Progress of Structural Reform Plan Summary PRESENTATION OUTLINE

Transcript of FISCAL YEAR MARCH 2014 THIRD QUARTER FINANCIAL ......FISCAL YEAR MARCH 2014 FORECAST FY MARCH 2014...

Page 1: FISCAL YEAR MARCH 2014 THIRD QUARTER FINANCIAL ......FISCAL YEAR MARCH 2014 FORECAST FY MARCH 2014 FINANCIAL METRICS 17 GLOBAL SALES VOLUME 18 US Dollar Euro Other 53.9 + 59.0 + 110.0

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New Mazda Axela Sport XD

FISCAL YEAR MARCH 2014THIRD QUARTER FINANCIAL RESULTS

Mazda Motor CorporationFebruary 5, 2014

2

Highlights

Fiscal Year March 2014 Nine Month Results

Fiscal Year March 2014 Full Year Forecast

Progress of Structural Reform Plan

Summary

PRESENTATION OUTLINE

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HIGHLIGHTS

HIGHLIGHTS (1) – NINE MONTH RESULTS

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Achieved revenue growth and profit increaseover prior year through increased sales ofSKYACTIV models

Revenue was ¥1,940.2 billion. Operating profitwas ¥124.6 billion. Net income was ¥77.4 billion

Global sales volume was 953,000 units

Strong sales of CX-5 and Mazda6/Atenzacontinue

New Mazda3/Axela selling well in the marketswhere it has been introduced

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HIGHLIGHTS (2) – FULL YEAR FORECAST

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Forecast global sales volume of 1,325,000 units

Upward revision of full year forecast:Operating profit of ¥180 billion and net incomeof ¥110 billion

Production started at new plant in Mexico inJanuary 2014

Steady progress of the Structural Reform Plan

Plan to pay a year-end dividend of ¥1 per share

Plan the consolidation of shares and a changein the number of shares per share unit

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FISCAL YEAR MARCH 2014NINE MONTH RESULTS

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FY MARCH 2014 FINANCIAL METRICS

GLOBAL SALES VOLUME

8

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GLOBAL

9

Sales of CX-5 and Mazda6/Atenza continued to bestrong

New Mazda3/Axela was successfully launched- Introduced to Europe and Japan, following North America

SKYACTIV models received high accolades in Japanand overseas[Atenza]

- Won RJC Car of the Year and the Car of the Year JapanEmotional Award

[New Mazda3]- Nominated for Car of the Year in North America and

Europe

Sales mix of SKYACTIV models increased to 48%

150162

0

50

100

150

JAPAN

10

(000)Nine Month Sales Volume

8%

FY March 2013 FY March 2014

New Axela

Sales were 162,000 units, up8% year on year

Share gained 0.1 point year onyear to 4.2%

Sales driven by SKYACTIVmodels

- Received approx. 21,000orders for new Axela in onlytwo months since its launch

- CX-5 was the top-sellingSUV in Japan for twoconsecutive years

- Sales of Atenza andSKYACTIV-equippedminivans also remainedstrong

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0

100

200

300 7%270289

USA 195

Canada,

other 75

Canada,

other 83

USA 206

New Mazda3 (North American Model)

FY March 2013 FY March 2014

(000)Nine Month Sales Volume

NORTH AMERICA

Sales were 289,000 units, up7% year on year

USA: 206,000 units, up 5%year on year, with retailsales improved 16%

- CX-5 and Mazda6 enjoyedbrisk sales. They alsomaintained a large salesmix of high grade models

- New Mazda3 awardedALG’s Residual ValueAward for the CompactCar Segment

Sales in Mexico hit an all-time high

119

144

0

50

100

150

EUROPE

12

21%

Mazda6 (European Model)

FY March 2013 FY March 2014

(000)Nine Month Sales Volume

Sales were 144,000 units, up 21%year on year while overall demandwas almost flat

Key markets such as Germany,Russia, and UK enjoyed strongsales

- Germany: 33,000 units, up 20% year onyear despite small drop in overalldemand

- Russia:33,000 units, up 3.2% year onyear. Locally produced SKYACTIVmodels drove the sales

- UK: 22,000 units, up 34% year on yearthanks to strong sales of Mazda6 andCX-5

Introduction of new Mazda3 hasbegun in the third quarter, showinga brisk sales trend

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129141

0

50

100

150

CHINA

13

9%

CX-5 (Chinese Model)

FY March 2013 FY March 2014

(000)Nine Month Sales Volume

Sales were 141,000 units, up9% year on year

Locally produced CX-5drove the sales

Continued to enhanceMazda brand advertisingfocusing on SKYACTIV

Increased the number ofoutlets to 432, up 36 fromthe end of March 2013(As of the end of Dec. 2013)

0

100

200

OTHER MARKETS

14

225 217

ASEAN

78

Australia

77 Australia

76

ASEAN

58

(4)%

Other 70 Other 83

CX-5 (Australian Model)

FY March 2013 FY March 2014

(000)Nine Month Sales Volume

Sales were 217,000 units

Australia: Sales remainedstrong with 76,000 units and8.9% share

- Mazda ranked third inoverall sales by brand

- CX-5 achieved the highestsales in its segment

ASEAN: Malaysia recordedhighest ever sales, partiallyoffsetting the decline inThailand

Other markets: Record highsales were posted by Chile,Peru, and Saudi Arabia

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19.6

+ 45.8

+ 97.0

+ 13.1

(23.3)

(27.6)

124.6

0

50

100

150

FY March2013

FY March2014

Investment forthe future

OPERATING PROFIT CHANGE

15

(Billion yen)

US DollarEuroOther

+32.4+32.6+32.0

Vol. & Mix

Exchange

CostImprovement Marketing

Expense

Other

Change from prior year + 105.0

Strengthensales globally

Sales increaseand miximprovement ofSKYACTIVmodels

FY March 2014 Nine Month vs. FY March 2013 Nine Month

(Deterioration)

Improvement

16

FISCAL YEAR MARCH 2014FORECAST

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FY MARCH 2014 FINANCIAL METRICS

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GLOBAL SALES VOLUME

18

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US DollarEuroOther

53.9

+ 59.0

+ 110.0

+ 20.7

(20.4)

(43.2)

180.0

0

50

100

150

200

250

FY March2013

FY March2014

19

+38.0+38.4+33.6

Change from prior year + 126.1

OPERATING PROFIT CHANGE

FY March 2014 Full Year vs. FY March 2013 Full Year

(Deterioration)

Improvement

(Billion yen)

Vol. & Mix

Exchange

CostImprovement Marketing

Expense

Other

Increaseinvestmentfor the future

Strengthensales globally

Sales increaseand miximprovementof SKYACTIVmodels

US DollarEuroOther

160.0

(3.0)

+ 20.0 + 5.0 + 0.0

(2.0)

180.0

0

50

100

150

200

250

Oct.Forecast

Feb.Forecast

OPERATING PROFIT CHANGE

20

+5.8+7.3+6.9

Change from October Forecast + 20.0

FY March 2014 Full Year vs. October Forecast

(Deterioration)

Improvement

(Billion yen)

Vol. & Mix

Exchange

CostImprovement

MarketingExpense

Other

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<New Mazda3/Axela>

Promote consistent sales at the right price in major countriesby making an appeal for the product values, same as withCX-5 and Mazda6/Atenza

Begin full-scale advertising in the United States. Start sales inAustralia in February

<By Region>

China: Further increase CX-5 orders by activities to raisethe profile of SKYACTIV models and continuousparticipation in regional motor shows

Thailand: Bolster sales with the CX-5 that was introducedlast fall and pre-orders of new Mazda3 that will beintroduced in March

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GLOBAL SALES INITIATIVES IN THE FOURTH QUARTER

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PROGRESS OF STRUCTURAL REFORM PLAN

Business Innovation by

SKYACTIV TECHNOLOGY

Accelerate Further Cost Improvement

Through Monotsukuri Innovation

Reinforce Business in Emerging Countriesand Establish Global Production Footprint

Promote Global Alliances

Promote sales at the right price

Minimize fleet sales

Maintain high residual value

Thoroughly implement inside-outactivities

Enhance brand loyalty

Continue to pursue complementaryalliances in the areas of products,technology and regions

Preparations for production at theplant in Mexico went smoothlyand mass production of the newMazda3 started as planned inJanuary 2014

Achieved further cost improvementfor new Mazda3/Axela

Enhance efficiency ofR&D and facility investment

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SUMMARY

SUMMARY

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[Nine Month Results]

Achieved revenue growth and profit increase overprior year through increased sales of SKYACTIVmodels

Sales of new Mazda3/Axela are strong in the marketswhere it has been introduced and SKYACTIV modelsare driving sales globally

[Full Year Forecast ]

Upwardly revised forecast: Operating profit of ¥180billion and net income of ¥110 billion

Steady progress of the Structural Reform Plan

Plan to pay a year-end dividend of ¥1 per share

Plan the consolidation of shares and a change in thenumber of shares per share unit

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RETURNS TO SHAREHOLDERS, CONSOLIDATION OF SHARES ANDCHANGE IN THE NUMBER OF SHARES PER SHARE UNIT

Plan to pay a year-end dividend of ¥1 per share

Aim to provide dividends on a stable basis andrealize a future steady increase

Consolidation of shares andChange in the number of shares per share unit

Consolidate 5 common shares into 1 share

Change the number of shares per share unitfrom 1,000 shares to 100 shares

* To be submitted to the ordinary general meeting of shareholders scheduledin June 2014. Planned effective date is August 1, 2014.

Returns to Shareholders

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APPENDIX

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CASH FLOW AND NET DEBT

*Reflecting “equity credit attributes” of the subordinated loan.

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197.2 204.5167.9

226.3 205.2 230.2 216.9

152.2 141.3144.9

209.0194.7

183.9 226.8

67.8 70.884.2

121.6

109.3126.4

141.9

89.4 100.3 114.7

113.2

106.797.9

100.3

0

300

600

REVENUE BY GEOGRAPHIC AREA

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506.6 516.9 511.7

670.1638.4

615.9

FY March 2013 FY March 2014

1Q 2Q 3Q 4Q 1Q 2Q 3Q

685.9(Billion yen)

Japan

NorthAmerica

Europe

Other

405.1 420.6 418.0

566.1514.7 527.1

576.3

46.547.6 45.2

50.4

51.8 55.3

59.4

55.0 48.7 48.5

53.6

49.456.0

50.2

0

300

600

REVENUE BY PRODUCT

30

FY March 2013 FY March 2014

1Q 2Q 3Q 4Q 1Q 2Q 3Q

506.6 516.9 511.7

670.1638.4

615.9

685.9(Billion yen)

Parts

Other

Vehicles/Parts foroverseasproduction

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26%

10%

16%

0%

10%

20%

30%

Total Vol. & Mix Exchange

REVENUE CHANGE

31

Japan 2%Overseas 8%

FY March 2014 Nine Month vs. FY March 2013 Nine Month

(Billion yen)

FY March 2014 1,940.2FY March 2013 1,535.2

34%

17% 17%

0%

20%

40%

Total Vol. & Mix Exchange32

Japan 5%Overseas 12%

REVENUE CHANGE

FY March 2014 Third Quarter vs. FY March 2013 Third Quarter

(Billion yen)

FY March 2014 685.9FY March 2013 511.7

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8.1

+ 24.5

+ 36.7+ 2.4

(10.9)

(10.2)

50.6

0

25

50

75

FY March2013

FY March2014

OPERATING PROFIT CHANGE

33Change from prior year + 42.5

(Billion yen)

FY March 2014 Third Quarter vs. FY March 2013 Third Quarter

(Deterioration)

Improvement

Vol. & Mix

Exchange

CostImprovement Marketing

Expense

Other

CONSOLIDATED WHOLESALES

34

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GLOBAL SALES VOLUME AND CONSOLIDATED WHOLESALES

35* Volumes for FY March 2014 Second half and Full year are forecast

53.2

73.8

44.940.8

65.170.3

0

50

100

KEY DATA

36

77.2

140.0

60.0 58.0

89.9

100.0

(Billion yen)

CapitalSpending

Depreciation R&D cost2013 2014 2013 2014 2013 2014(FY March)

NineMonth

FullYear

NineMonth

FullYear

NineMonth

FullYear

* Data for FY March 2014 full year are forecast

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DISCLAIMER

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The projections and future strategies shown in thispresentation are based on various uncertainties includingwithout limitation the conditions of the world economy inthe future, the trend of the automotive industry and therisk of exchange-rate fluctuations.So, please be aware that Mazda's actual performance maydiffer substantially from the projections.

If you are interested in investing in Mazda, you arerequested to make a final investment decision at your ownrisk, taking the foregoing into consideration.Please note that neither Mazda nor any third partyproviding information shall be responsible for any damageyou may suffer due to investment in Mazda based on theinformation shown in this presentation.