PRESENTATION OUTLINE Consolidated Financial Results and Forecast - PDF document

FISCAL YEAR MARCH 2016 FINANCIAL RESULTS 1 PRESENTATION OUTLINE  Consolidated Financial Results and Forecast Summary  Fiscal Year March 2016 Results  Fiscal Year March 2017 Forecast  Structural Reform Plan Review  Structural Reform Stage 2  Summary 2

CONSOLIDATED FINANCIAL RESULTS / FORECAST SUMMARY 【FY March 2016 Results】 Global sales volume was 1,534,000 units, the highest on record  Revenue was ¥3,406.6 billion. Operating profit was ¥226.8 billion. Net income  was ¥134.4 billion. 【FY March 2017 Forecast】 Forecast global sales of 1,550,000 units, operating profit of ¥170 billion  and net income of ¥115 billion Enhance efforts to improve volume and profitability by introducing new  products and updated models, improve costs and reduce fixed costs Global Sales Volume Revenue Operating Profit Net Income (Billion yen) (Billion yen, ROS:%) (000 units) (Billion yen) 3,406.6 226.8 1,550 1,534 202.9 3,280.0 158.8 170.0 134.4 115.0 1,397 3,033.9 6.7 6.7 % % 5.2 % FY15/3 FY16/3 FY17/3 FY15/3 FY16/3 FY17/3 FY15/3 FY16/3 FY17/3 FY15/3 FY16/3 FY17/3 Results Results Forecast Results Results Forecast Results Results Forecast Results Results Forecast 3 FISCAL YEAR MARCH 2016 RESULTS 4

FY MARCH 2016 GLOBAL SALES VOLUME 5 JAPAN  Sales were 232,000 units, up 3% year-on-year  Mazda sales grew while overall demand declined, and market share rose 0.5 points Mazda6/Atenza year-on-year to 4.7％. Registered vehicle market share was 6.1%, up Full Year Sales Volume 0.6 points year-on-year (000) 300 +3% 232 225  Launch of New Roadster and 200 full-year sales of CX-3 contributed to volume growth 100 0 FY March 2015 FY March 2016 6

NORTH AMERICA  Sales were 438,000 units, up 3% year-on-year  Good progress made in the transition to SKYACTIV models  USA: Sales were 306,000 units, CX-5 on par with last year, while fleet sales were restrained - Sales of updated CX-5 were Full Year Sales Volume strong (000) - CX-3 and New MX-5 500 +3% 438 425 contributed to sales volume Canada & 132 119 Others  Mexico: Sales were 59,000 units, up 30% year-on-year 250 USA 306 306 - Sales of Mazda2 and Mazda3 were strong 0 FY March 2015 FY March 2016 7 EUROPE  Sales were 257,000 units, up 12% year-on-year  CX-3 drove sales and Mazda2 contributed throughout the year  Sales in Europe excluding CX-3 Russia grew 27% year-on-year to 232,000 units, far outpacing Full Year Sales Volume overall demand growth (000) - Germany: 60,000 units, 300 +12% 257 up 17% year-on-year 229 - UK: 48,000 units, up 20% 200 year-on-year Europe 232 (Excl. Russia)  Sales in Russia were 25,000 183 +27% 100 units, down 47% year-on-year, due to declining demand and a Russia 46 25 (47)% weak ruble 0 FY March 2015 FY March 2016 8

CHINA  Sales were 235,000 units, up 10% year-on-year  Sales of Mazda3 remained strong, thanks in part to a reduction in taxes Mazda3/Axela  Updated CX-5 and Mazda6 contributed to sales growth Full Year Sales Volume (000)  New CX-4 was unveiled at 300 +10% Beijing Motor Show 235 215 200 100 0 New CX-4 FY March 2015 FY March 2016 9 OTHER MARKETS Sales were 372,000 units, up  23% year-on-year Australia: Sales were 116,000  units, up 15% year-on-year and market share was 10% - No.2 in sales by brand - CX-3 and CX-5 were the best Mazda2/Demio sellers in their segments - New MX-5 sales were also strong ASEAN: Sales were 101,000 units,  Full Year Sales Volume up 32％ year-on-year (000) - Despite declining demand in Thailand, Mazda sales increased 372 400 +23% 23% year-on-year 303 155 - In Vietnam, sales increased 90% Others year-on-year 126 200 Others: New Zealand, Saudi 116  Australia 101 Arabia, Chile and Colombia 101 achieved record-high sales 76 ASEAN 0 FY March 2015 FY March 2016 10

FY MARCH 2016 FINANCIAL METRICS 11 FY MARCH 2016 OPERATING PROFIT CHANGE Improvement (Billion yen) (Deterioration) Global sales Includes lower increase material prices Volume & Cost Marketing 300 Mix Expense Improvement FY March Exchange Other + 56.0 + 43.7 + 1.7 2016 FY March 226.8 2015 202.9 (35.1) 200 (42.4) Increase in R&D cost for future growth, USD +12.8 EUR (10.3） depreciation cost for CAD (4.2) AUD (15.7） new plants such as GBP +1.7 Other (26.7） Mexico, and customer service cost 100 Change from Prior Year + 23.9 0 12

FISCAL YEAR MARCH 2017 FORECAST 13 FY MARCH 2017 GLOBAL SALES VOLUME 14

FY MARCH 2017 FINANCIAL METRICS 15 FY MARCH 2017 OPERATING PROFIT CHANGE 【Improvement Factors】 Volume growth and profitability improvement, Cost improvement, Containment of fixed cost 【Volume & Mix / Exchange rates】 Improvement (Billion yen) Improve profitability by introducing new CX-9 (Deterioration) and updated models. Mitigate exchange impact by market mix 300 management for better profitability and Volume & FY March pricing action Mix 2016 Exchange + 18.0 226.8 Cost Improvement Marketing FY March Expense + 31.0 Other 2017 200 170.0 (4.0) (20.8) (81.0) 【Cost Improvement】 【Other】 Reinforce cost improvements Reduce controllable fixed for new products and costs except for investment 100 overseas plants through for future growth Monotsukuri Innovation Change from Prior Year (56.8) 0 16

FY MARCH 2017 OPERATING PROFIT CHANGE 【Deterioration Factors】 Exchange impact, Investment for growth (Billion yen) Improvement 【Exchange】 USD (15.6) EUR (14.9) (Deterioration) CAD (12.9) AUD (13.8) 300 Volume & GBP (11.0) Other (12.8) FY March Mix 2016 Exchange + 18.0 226.8 Cost Marketing Expense FY March Improvement Other 2017 + 31.0 200 170.0 (4.0) (20.8) (81.0) 【Other】 Increase of R&D for future growth 100 and depreciation of new plants and new product facility investment Change from Prior Year (56.8) 0 17 STRUCTURAL REFORM PLAN REVIEW 18

STRUCTURAL REFORM PLAN REVIEW 【Background】 The Structural Reform Plan was formulated to enable Mazda to respond to  changes in the external environment following the Lehman Brothers collapse, including declining vehicle demand and continued appreciation of the yen. Since announcing the plan in February 2012, the company has strongly promoted structural reforms that leverage SKYACTIV Technology While investing for future growth, Mazda steadily implemented the  four key initiatives aimed at achieving a stable profit structure Initiatives to improve Brand Value were deployed globally  1,534 【Sales volume and profit trend】  L e h man B ro t h e rs c o llap s e Co n t in u e d  1,363 ap p re c i at i o n o f y e n 226.8 N at u ral d is as t e rs  ( J ap an / T h a i l a n d ) Sales Volume 162.1 (000) 134.4 1,247 91.8 Operating Profit Net Income (Billion yen) (38.7) Structural Reform Plan (107.7) ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 ‘13 ‘14 ‘15 ‘16 (FY March) 19 STRUCTURAL REFORM PLAN REVIEW 【Business innovation through SKYACTIV】 SKYACTIV models and KODO design  are highly acclaimed in Japan and overseas Innovated sales methods and promoted “right-price”  sales while increasing global sales volume by 23％ (vs. FY March 2012) SKYACTIV models now account for 86% of sales  【Major Awards】 volume. New product launches progressed as planned 【Cost improvement by Monotsukuri Innovation】 Monotsukuri Innovation enabled Mazda to make  more competitive products while improving costs - Design intent faithfully reproduced in mass- production vehicles - Development and application of designer colors Soul Red and Machine Gray contributed to enhancing brand value Substantially improved investment efficiency of  R&D and capital expenditures Promoted global optimum sourcing  20

STRUCTURAL REFORM PLAN REVIEW 【Strengthen emerging market business and establish global production footprint】 Mexico plant increased number of production  models as planned and now produces Mazda3, Mazda2 and a compact car for Toyota Powertrain plant in Thailand started production  of engines in addition to automatic transmissions Overseas production ratio has reached around  40% contributing to enhanced global supply capability and resistance to exchange rate （Thailand Powertrain Plant） fluctuations 【Promote global alliance】 Continue to promote optimum alliances in the  areas of product, technology and regions Started vehicle production and supply for  Toyota at Mexico plant and for FCA at Hiroshima plant Activities of the joint committee with Toyota  have increased mutual understanding. Studies for mid-to-long-term cooperative projects are progressing well 21 STRUCTURAL REFORM STAGE 2 22