1
New Mazda Axela Sport XD
FISCAL YEAR MARCH 2014THIRD QUARTER FINANCIAL RESULTS
Mazda Motor CorporationFebruary 5, 2014
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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
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
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
11
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
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
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
FY MARCH 2014 FINANCIAL METRICS
17
GLOBAL SALES VOLUME
18
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
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+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
<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.
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
26%
10%
16%
0%
10%
20%
30%
Total Vol. & Mix Exchange
REVENUE CHANGE
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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
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
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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
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.