1 FY2006 Third Quarter Results & Full Year Projections
FY2006 THIRD QUARTER RESULTS AND FULL YEAR PROJECTIONS
MAZDA MOTOR CORPORATION
February 8, 2007
2 FY2006 Third Quarter Results & Full Year Projections
PRESENTATION OUTLINE
FY2006 Nine Months Results
FY2006 Full Year Projections
Close
3 FY2006 Third Quarter Results & Full Year Projections
FY2006 NINE MONTHS RESULTS
4 FY2006 Third Quarter Results & Full Year Projections
FY2006 NINE MONTHS HIGHLIGHTS
Operating Profit up 28% to ¥107.3 Billion
Revenues up 9%Introduced CX-7 in Japan and Australia, Following North AmericaNet Income, at ¥42.1 Billion, up 26% excluding Impact of Gain from Pension Fund Return and Asset-Impairment Losses in the Prior Year
5 FY2006 Third Quarter Results & Full Year Projections
FY2006 NINE MONTHS FINANCIAL METRICS(Billion yen) Nine Months Change
FY2006 FY2005 Amount Pct.
Revenue 2,289.6 2,093.4 196.2 9 %
Operating Profit 107.3 83.7 23.6 28 %Ordinary Profit 83.9 68.0 15.9 23 %Profit Before Tax 76.7 86.9 (10.2) (12) %Net Income 42.1 41.3 0.8 2 %Memo: Net Income* 42.1 33.5 8.6 26 %
Operating ROS 4.7% 4.0% 0.7 Pts -
EPS (Yen/Share) 30.1 32.5 (2.4) (8) %*Net Income without pension fund return gain and asset- impairment losses in the prior year.
6 FY2006 Third Quarter Results & Full Year Projections
KEY ASSUMPTIONS
Nine MonthsFY2006 FY2005 Change
WHOLESALES (000)Consolidated 829 834 (1) %
EXCHANGE RATES Yen / U.S. Dollar 116 112 ¥ 4 Yen / Euro 148 137 ¥ 11
7 FY2006 Third Quarter Results & Full Year Projections
REVENUE CHANGES BY DESTINATION
9%
2%
12%
0%
5%
10%
Total Domestic Overseas(Billion yen)FY06 2,289.6 645.3 1,644.3FY05 2,093.4 630.2 1,463.2
Vol. & Mix 5 %Exchange 4 %
FY2006 Nine Months Compared with FY2005 Nine Months
8 FY2006 Third Quarter Results & Full Year Projections
JAPAN
FY2006 FY2005 Change
Retail Volume (000) 182 199 (8) %Market Share 4.6 % 4.9 % (0.3) Pts
Nine Months
Lower Passenger Vehicle Demand
9 FY2006 Third Quarter Results & Full Year Projections
UNITED STATES
Contributions of CX-7, Mazda5 & MX-5
FY2006 FY2005 Change
Retail Volume (000) 202 194 4 %Market Share 1.6 % 1.5 % 0.1 Pts
Nine Months
10 FY2006 Third Quarter Results & Full Year Projections
EUROPE
Retail Volume Up 11% YOY
FY2006 FY2005 Change
Retail Volume (000) 219 197 11 %Market Share 1.6 % 1.5 % 0.1 Pts
Nine Months
11 FY2006 Third Quarter Results & Full Year Projections
CHINA
Fiercer Competitions
FY2006 FY2005 Change
Retail Volume (000) 98 102 (4) %Market Share 1.8 % 2.3 % (0.5) Pts
Nine Months
12 FY2006 Third Quarter Results & Full Year Projections
23.6
16.2
29.8
(14.4)
8.7
2.1
(18.8)(20)
(10)
0
10
20
30
TotalOper.
Vol & Mix Exch. ProductEnhanc.
Net CR Mktg.Exp.
OtherCosts
FY06 107.3FY05 83.7
OPERATING PROFIT CHANGESFY2006 Nine Months Compared with FY2005 Nine Months
Billion yen [Factors for Increase]- Better volume and mix, and lower incentive with CX-7 in North America.- Better volume and mix globally with Premacyand Roadster[Factors for Decrease]- Lower Sales in Japan and Other Regions
13 FY2006 Third Quarter Results & Full Year Projections
23.6
16.2
29.8
(14.4)
8.7
2.1
(18.8)(20)
(10)
0
10
20
30
TotalOper.
Vol & Mix Exch. ProductEnhanc.
Net CR Mktg.Exp.
OtherCosts
OPERATING PROFIT CHANGESFY2006 Nine Months Compared with FY2005 Nine Months
Billion yenUS Dollar 6.9Euro 13.1Other 9.8
FY06 107.3FY05 83.7
14 FY2006 Third Quarter Results & Full Year Projections
23.6
16.2
29.8
(14.4)
8.7
2.1
(18.8)(20)
(10)
0
10
20
30
TotalOper.
Vol & Mix Exch. ProductEnhanc.
Net CR Mktg.Exp.
OtherCosts
OPERATING PROFIT CHANGESFY2006 Nine Months Compared with FY2005 Nine Months
Billion yenProduct Upgrade (9.6)Regulations (4.8)
Cost Reductions Net of Raw Material Price Increases
FY06 107.3FY05 83.7
15 FY2006 Third Quarter Results & Full Year Projections
23.6
16.2
29.8
(14.4)
8.7
2.1
(18.8)(20)
(10)
0
10
20
30
TotalOper.
Vol & Mix Exch. ProductEnhanc.
Net CR Mktg.Exp.
OtherCosts
OPERATING PROFIT CHANGESFY2006 Nine Months Compared with FY2005 Nine Months
Billion yenHigher Quality-related Cost and R&D cost.
FY06 107.3FY05 83.7
16 FY2006 Third Quarter Results & Full Year Projections
FY2006 FULL YEAR PROJECTIONS
17 FY2006 Third Quarter Results & Full Year Projections
FULL YEAR OUTLOOK
Operating Profit Up 28% to ¥158 Billion
Continue Product-led Growth with CX-7 and CX-9Substantial Improvements in Volume and MixContinue Progress and Foundation Building under Mazda Momentum
18 FY2006 Third Quarter Results & Full Year Projections
FULL YEAR FINANCIAL METRICS(Billion yen) Full-year Change
FY2006 FY2005 Amount Pct.
Revenue 3,200.0 2,919.8 280.2 10 %
Operating Profit 158.0 123.4 34.6 28 %Ordinary Profit 130.0 101.5 28.5 28 %Profit Before Tax 120.0 117.5 2.5 2 %Net Income 73.0 66.7 6.3 9 %Memo: Net Income* 73.0 58.4 14.6 25 %
Operating ROS 4.9% 4.2% 0.7 Pts -
EPS (Yen/Share) 52.1 51.5 0.6 1 %*Net Income without pension fund return gain and asset- impairment losses in the prior year.
19 FY2006 Third Quarter Results & Full Year Projections
KEY ASSUMPTIONS
Full YearFY2006 FY2005 Change
WHOLES SALES (000)Consolidated 1,170 1,149 2 %
EXCHANGE RATES Yen / U.S. Dollar 116 113 ¥ 3 Yen / Euro 148 138 ¥ 10
20 FY2006 Third Quarter Results & Full Year Projections
REVENUE CHANGES BY DESTINATION
10%
0%
14%
0%
2%
4%
6%
8%
10%
12%
14%
Total Domestic Overseas
Vol. & Mix 6 %Exchange 4 %
FY2006 Compared with FY2005
FY06 3,200.0 890.0 2,310.0FY05 2,919.8 887.7 2,032.1
(Billion yen)
21 FY2006 Third Quarter Results & Full Year Projections
JAPANFull Year
FY2006 FY2005 Change
Retail Sales Volume (000) 262 287 (9) %Market Share 4.6 % 4.9 % (0.3) Pts
Brand Reinforcement with CX-7
22 FY2006 Third Quarter Results & Full Year Projections
UNITED STATESFull Year
FY2006 FY2005 Change
Retail Sales Volume (000) 285 262 9 %Market Share 1.7 % 1.5 % 0.2 Pts
Introduction of CX-9 and Tribute
23 FY2006 Third Quarter Results & Full Year Projections
EUROPE
Momentum Continues
Full YearFY2006 FY2005 Change
Retail Sales Volume (000) 305 282 8 %Market Share 1.6 % 1.5 % 0.1 Pts
24 FY2006 Third Quarter Results & Full Year Projections
CHINA
Higher Sales with Mazda3
Full YearFY2006 FY2005 Change
Retail Sales Volume (000) 135 130 4 %Market Share 1.8 % 2.1 % (0.3) Pts
25 FY2006 Third Quarter Results & Full Year Projections
34.630.7
36.1
(18.7)
11.0
(1.2)
(23.3)(30)
(20)
(10)
0
10
20
30
40
TotalOper.
Vol & Mix Exch. ProductEnhanc.
Net CR Mktg.Exp.
OtherCosts
[Factors for Increase]- Better mix and lower incentive with CX-7 and
CX-9.[Factors for Decrease]- Lower Registration Vehicle Demand in Japan
OPERATING PROFIT CHANGES
FY06 158.0FY05 123.4
FY2006 Compared with FY2005Billion yen
26 FY2006 Third Quarter Results & Full Year Projections
34.630.7
36.1
(18.7)
11.0
(1.2)
(23.3)(30)
(20)
(10)
0
10
20
30
40
TotalOper.
Vol & Mix Exch. ProductEnhanc.
Net CR Mktg.Exp.
OtherCosts
OPERATING PROFIT CHANGESFY2006 Compared with FY2005
US Dollar 8.0Euro 15.8Other 12.3
FY06 158.0FY05 123.4
Billion yen
27 FY2006 Third Quarter Results & Full Year Projections
34.630.7
36.1
(18.7)
11.0
(1.2)
(23.3)(30)
(20)
(10)
0
10
20
30
40
TotalOper.
Vol & Mix Exch. ProductEnhanc.
Net CR Mktg.Exp.
OtherCosts
OPERATING PROFIT CHANGESFY2006 Compared with FY2005
Product Upgrade (12.5)Regulations (6.2)
CRs Net of Raw Material Price Increases including Aluminum, Steel and Precious metals
FY06 158.0FY05 123.4
Billion yen
28 FY2006 Third Quarter Results & Full Year Projections
34.630.7
36.1
(18.7)
11.0
(1.2)
(23.3)(30)
(20)
(10)
0
10
20
30
40
TotalOper.
Vol & Mix Exch. ProductEnhanc.
Net CR Mktg.Exp.
OtherCosts
OPERATING PROFIT CHANGESFY2006 Compared with FY2005
Higher R&D costs, Depreciation and Quality-related Cost
FY06 158.0FY05 123.4
Billion yen
29 FY2006 Third Quarter Results & Full Year Projections
CLOSE
30 FY2006 Third Quarter Results & Full Year Projections
CLOSE
Operating Profit For the Nine Months up 28% to ¥107.3 BillionFull-year Operating Profit Revised Up 28% to ¥158 BillionSix Straight Years of Improved Sales and Profit and Record-High Profits at All LevelsNext Mid-Term Plan Announcement In March
31 FY2006 Third Quarter Results & Full Year Projections
32 FY2006 Third Quarter Results & Full Year Projections
APPENDIX
33 FY2006 Third Quarter Results & Full Year Projections
FY2006 THIRD QUARTER FINANCIAL METRICS
(Billion yen) 3rd Quarter ChangeFY2006 FY2005 Amount Pct.
Revenue 768.2 741.5 26.7 4 %
Operating Profit 37.5 34.9 2.6 7 %
Ordinary Profit 27.3 24.6 2.7 11 %
Profit Before Tax 24.3 23.7 0.6 3 %
Net Income 14.9 10.2 4.7 46 %
Operating ROS 4.9% 4.7% 0.2 Pts -
EPS (Yen/Share) 10.6 7.6 3.0 40 %
34 FY2006 Third Quarter Results & Full Year Projections
3rd QuarterFY2006 FY2005 Change
WHOLESALES (000) Consolidated 269 277 (3) %
EXCHANGE RATES Yen / U.S. Dollar 118 117 ¥ 1 Yen / Euro 152 139 ¥ 13
KEY ASSUMPTIONS
35 FY2006 Third Quarter Results & Full Year Projections
OPERATING PROFIT CHANGESFY2006 3rd Quarter Compared with FY2005 Third Quarter
2.61.3
7.1
(5.1)
3.4 2.6
(6.7)(8)(6)(4)(2)02468
10
TotalOper.
Vol & Mix Exch. ProductEnhanc.
Net CR Mktg.Exp.
OtherCosts
FY06 37.5FY05 34.9
Billion yen
36 FY2006 Third Quarter Results & Full Year Projections
DISCLAIMERThe projections for FY2006 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 Mazda's actual performance may differ substantially from the projections.
If you are interested in investing in Mazda, you are requested to make a final investment decision at your own risk, taking the foregoing into consideration.Please note that neither Mazda nor any third party providing information shall be responsible for any damage you may suffer due to investment in Mazda based on the information shown in this presentation.