[PPT] - Mazda Southern Africa Dealer Business Session November 17 th 2016 PowerPoint Presentation

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Dealer Business Session

Mazda Southern Africa

November 17th 2016

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David Hughes

Mazda Southern Africa

Managing Director

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MAZDA 2ND YEAR OF TRADING

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Mazda Sa Sale les Tot

tal

al Sa Sale les s BT BT % % Deal ealers s Through- put 2012 6 788 1 961 29% 127 53 2013 5 701 2 528 44% 127 45 2014 4 939 2 376 48% 127 39 2015 9 066 1 337 15% 47 193 2016 12 000 680 6% 51 235

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CAR PARC FIGURES

2012 2013 2014 2015 2016

10 Year 122,543 111,926 106,863 104,602 104,030 7 Year 84,896 77,117 66,732 57,678 59,024 5 Year 56,092 43,673 37,050 35,056 39,402 Dealer Number 127 127 127 47 51

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WHAT DOES THIS MEAN FOR THE DEALER NETWORK

30,000+ units in the warranty and service plan pool.
Extended warranties will start to kick in.
Hey! Mine is JUST out of warranty.
How much to continue to service my Mazda with you.
Attrition (wear and tear) period kicks in.
Do we have enough resources to support you?
Will our policies stand up to scrutiny.
Do you have enough capacity and resources?

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PLAN TO EXPAND YOUR USED CAR BUSINESS

Optimum time to trade in is 39 months.
This commences end 2017 / early 2018.
2018, we start to introduce next (7th) generation product.
New bodies, new designs, new engines.
New transmissions, New technology.
Acquisition of good quality second hand Mazda stock.
Improved Resale Values.

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QUALITY LOW MILEAGE VEHICLES

Should be well maintained - 3 year unlimited service

program.

Didn’t discount - we raised prices – value increase.
No fleet and rental buys backs to deal with.
No Pre–whacked units floating on competitor sites.
Brand is strengthened.
Buyers will be asking about/ seeking used Mazda.

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Pas asseng enger er cars 2015 2015 2016 2016 Tot

tal

al

RENAULT 7.3% 12.1% 19.4% HYUNDAI 7.5% 11.8% 19.3% NISSAN 4.8% 14.4% 19.2% KIA 7.7% 9.9% 17.6% TOYOTA 4.1% 13.1% 17.2% VOLKSWAGEN 5.7% 11.0% 16.7% SUBARU 4.3% 12.1% 16.4% JAGUAR 5.5% 8.9% 14.4% FORD 2.2% 11.7% 13.9% MITSUBISHI 3.1% 10.3% 13.4% SUZUKI 3.1% 10.3% 13.4% BMW 2.3% 10.7% 13.0% JEEP 1.6% 11.3% 12.9% LAND ROVER 4.7% 7.4% 12.1% AUDI 3.8% 7.8% 11.6%

MAZDA 0.0% 11.5% 11.5%

HONDA 2.0% 8.9% 10.9% OPEL 2.0% 4.0% 6.0% MERCEDES-BENZ 0.0% 5.8% 5.8% VOLVO 2.5% 6.9% 9.4%

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WINNERS AND LOSERS (YTD OCT 2016)

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Trevor Ward

Mazda Southern Africa

Head of Customer Service

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AGENDA

Parts Business
Warranty
Technical
Training
Customer Care

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PARTS BUSINESS

Parts Sales Trends
Service Rates
Pricing
Parts Objectives
Mazda “Lifetime” Warranty

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SALES TRENDS - OVERALL

10000000 11000000 12000000 13000000 14000000 15000000 16000000 17000000 18000000 19000000 20000000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Act 2016 Obj 2016 Act 2015

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SALES TRENDS – BACK ORDERS

Jan Feb Mar Apr May Jun Jul Aug Sept Oct

BO Amount R 1 200 815 R 1 500 927 R 1 502 696 R 1 145 304 R 1 148 296 R 1 677 839 R 1 007 891 R 1 470 893 R 969 029 R 1 252 000 BO Line 514 746 949 771 678 950 656 1066 491 712 # of Items 397 533 632 524 513 666 439 603 328 457 BO Ratio 10.2% 13.7% 18.7% 9.3% 9.1% 12.5% 8.3% 11.0% 6.3% 5.3%

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SERVICE RATES

Rank Jan - Oct Ave 2015

Service Related 91% 95% Attrition 93% 91% Medium 95% 93% Slow 94% 91% Non-Stocking 92% 87% Dead 85% 77% Miscellaneous 82% 78% Total 91% 85%

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PRICING

Jan Feb Mar Apr May Jun Jul Aug Sept Oct

Parts

R 6 240 919 R 4 690 487 R 9 300 089 R 10 151 939 R 11 361 995 R 4 151 732 R 4 664 843 R 6 889 642 R 5 156 247 R 7 017 656

Import Costs

R 2 069 315 R 1 637 959 R 2 113 449 R 2 932 755 R 3 824 389 R 1 481 322 R 1 649 700 R 2 600 038 R 2 100 122 R 2 285 777

Ratio 33% 35% 23% 29% 34% 36% 35% 38% 40% 32%

MSA has been absorbing the increased costs.
Reducing order types from 3 to 2:
Stock
Emergency
Investigating a 2-tier discount structure:
43% for Stock
30% for Emergency

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PRICING – BT-50 – MAINTENANCE PARTS

PARTS DESCRIPTION TOYOTA ISUZU FORD VW MAZDA

PRICES INCLUDE VAT HILUX RAIDER 2.4GD KB 250 D RANGER 2.2 AMAROK 2.0 Bi TDI 2.2 MANUAL 2.4GD-6 d-Tec LE TDCI 2.2 XL Trendline SLE 6 MT RETAIL SELLING PRICE R 432,000.00 445,700.00 384,990.00 468,700.00 409,900.00 AIR FILTER R 494.79 321.63 483.36 449.27 424.00 OIL FILTER R 224.19 194.70 134.52 180.93 118.00 POLLEN FILTER R 776.18 218.25 171.00 268.47 150.00 GLOW PLUG EACH R 447.34 498.99 331.74 604.78 291.00 R/H WIPER BLADE R 148.53 85.99 159.93 270.72 140.29 L/H WIPER BLADE R 120.73 31.48 116.49 270.72 102.18 FRONT BRAKE PADS R 1,723.74 1,271.94 1,126.32 1,400.38 988.00 REAR BRAKE PADS/SHOES R 1,194.88 1,172.02 2,314.20 1,192.21 2,030.00

SUB TOTAL : A R 5,130.38 3,795.00 4,837.56 4,637.48 4,243.47

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PRICING – BT-50 – ATTRITION PARTS

PARTS DESCRIPTION TOYOTA ISUZU FORD VW MAZDA

PRICES INCLUDE VAT HILUX RAIDER 2.4GD KB 250 D RANGER 2.2 AMAROK 2.0 Bi TDI 2.2 MANUAL 2.4GD-6 d-Tec LE TDCI 2.2 XL Trendline SLE 6 MT RETAIL SELLING PRICE R 432,000.00 445,700.00 384,990.00 468,700.00 409,900.00 FRONT BRAKE DISC R 1,521.35 1,042.95 1,539.00 1,278.69 1,350.00 REAR BRAKE DRUM / DISC R 1,471.47 739.62 1,537.86 1,352.28 1,349.00 FRONT SHOCKABSORBER / STRUT R 1,581.48 787.80 1,111.50 1,432.60 975.00 REAR SHOCKABSORBER / STRUT R 597.26 449.59 1,098.96 1,336.29 964.00 FAN BELT R 1,133.22 267.43 699.96 335.64 614.00

SUB TOTAL : B R 6,304.78 3,287.39 5,987.28 5,735.50 5,252.00

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PRICING – BT-50 – CRASH PARTS

PARTS DESCRIPTION TOYOTA ISUZU FORD VW MAZDA

PRICES INCLUDE VAT HILUX RAIDER 2.4GD KB 250 D RANGER 2.2 AMAROK 2.0 Bi TDI 2.2 MANUAL 2.4GD-6 d-Tec LE TDCI 2.2 XL Trendline SLE 6 MT RETAIL SELLING PRICE R 432,000.00 445,700.00 384,990.00 468,700.00 409,900.00 BONNET R 2,931.82 6,069.02 5,404.74 7,487.81 4,741.00 FRONT BUMPER SKIN R 1,972.34 2,661.16 4,736.70 4,970.58 4,155.00 GRILLE R 5,888.97 4,140.31 5,432.10 4,477.70 4,765.00 L/H FRONT FENDER R 1,218.72 3,053.41 1,769.85 6,335.84 1,552.50 WHEEL RIM ALUMINIUM 17" R 2,859.58 1,711.62 2,040.60 9,618.96 1,790.00 L/H HEADLIGHT ASSEMBLY R 3,446.19 3,346.34 3,190.86 3,720.87 2,799.00 FRONT WINDSCREEN R 2,631.17 7,027.38 3,197.70 8,063.79 2,805.00 AIRCON CONDENSOR R 5,319.92 3,499.96 3,323.10 5,160.18 2,915.00 RADIATOR R 5,281.96 3,893.03 5,293.02 4,944.68 4,643.00 R/H FRONT DOOR R 4,295.04 9,132.60 6,420.48 13,718.81 5,632.00 R/H REAR DOOR R 3,865.82 5,560.03 5,064.40 10,367.73 4,442.46 R/H FRONT WINDOW GLASS R 971.95 717.90 653.22 988.96 573.00 REAR BUMPER SKIN R 5,711.40 5,042.79 4,369.62 12,671.67 3,833.00 L/H REAR FENDER R 4,473.61 4,482.24 10,982.76 9,747.00 9,634.00 BOOT LID / TAILGATE R 5,764.27 11,212.80 6,176.52 10,691.87 5,418.00 L/H TAIL LIGHT ASSEMBLY R 1,530.54 1,586.47 2,185.38 2,350.02 1,917.00 REAR WINDSCREEN R 4,532.30 3,360.28 5,464.02 5,333.63 4,793.00

SUB TOTAL : C R 62,695.60 76,497.34 75,705.07 120,650.10 66,407.96

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PARTS OBJECTIVES

Objective Actual 2015 Dealer Parts Purchases* R 112 175 808 R 119 168 605 R 158 624 248 Stock/Daily Ratio 80/20 62/38 26/71 RFC Ratio 2% 2.8% 3.3% Qualifying Criteria for Incentive Program:

Achieve 100% on Purchase objective;
Achieve 2% or less on RFC’s;
Attend 1 x Service/Parts Forum;
Actively participate in Stock Locator program;
Achieve 80/20 ratio on Stock/Daily parts orders.

* 2016 YTD

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LIFETIME WARRANTY

Will offer customers a lifetime warranty on parts retailed

and fitted by a Mazda dealer.

Terms and conditions will apply:
Excludes wear and tear;
Remains valid as long as customer remains owner of the vehicle;
Original invoice must be produced.
Purpose is to increase traffic in Dealer Service Dept.
Allows Dealers to increase their customer database.
Due to be launched January 2017.

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WARRANTY

2016 Stats
Labour Rates

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2016 STATS – WARRANTY & SERVICE PLAN

500 1000 1500 2000 2500 3000 3500 4000 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Warranty Claims SP Claims Linear (Warranty Claims) Linear (SP Claims)

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LABOUR RATES

Warranty Service Plan

INDUSTRY AVERAGE - 2015 R 461.00 R 474.00 Mazda R 500.00 R 500.00 INDUSTRY AVERAGE – 2016 R 457.00 R 522.61 Mazda R 560.00 R 560.00

New labour rate will become effective 01 April 2017.
MSA is still investigating the implementation of Effective labour

rates.

New labour rate will be linked to Mazda Masters training

program.

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TECHNICAL

Dealer Technician Skills
PSS & Technical Support
MESI & VCMI
Outsourcing (Subletting)

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DEALER TECHNICIAN SKILLS

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DEALER TECHNICIAN SKILLS

Assessment carried out beginning of 2015 was not encouraging.
Highest mark obtained was 40%.
Problem not unique to Mazda, industry-wide concern.
Cannot be fixed overnight, needs long-term solution.
Training alone will not rectify problem.
Need suitably skilled “young blood”.
Commitment from Dealer network to recruit & retain.
MSA to provide necessary training opportunities.

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DEALER TECHNICIAN SKILLS – PREP FOR 7TH GEN MAZDA

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PSS & TECHNICAL SUPPORT

PSS was introduced in July 2016.
Allows for permanent record of technical issues and resolutions.
No. of Cases

Closed

Ave. Time to Resolve

263 216 7 Days

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PSS & TECHNICAL SUPPORT – MESI & VCMI

MESI = Mazda Electronic Service Information
Licensed product @ R350 000/annum
MSA has borne cost for past 2 years
VCMI = Vehicle Communication Module Interface
Licensed product @ R430 000/annum
MSA has borne the costs
As from 2017 MSA will share the costs on a 50/50 basis.
Approximate Dealer share:
MESI – R3 000/annum
VCMI – R3 500/annum

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OUTSOURCING

Outsourced Service Providers
Preferred suppliers only – no approved suppliers;
Dealers can use anyone for retail work;
We prefer dealers to keep this work in-house.

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TRAINING

Mazda Masters
MazTech Program

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MAZDA MASTERS

This is a Technical Training program to enable Dealer technicians

to reach Master Technician status.

Duration is approximately 3 years.
3 levels – Certified; Senior; Mazda Master.
Consists of classwork and practical sessions.
Internationally recognised qualification.

Training Module

No. Trained.

Certified 48

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MazTech PROGRAM

Technician skills contest which occurs every 2 years.
Alternates between Regional competition & World Cup.
MSA will participate for the 1st time in 2018.

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CUSTOMER CARE

MAESTRO
Roadside Assistance
Call Centre

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MAESTRO

2015 2016 YTD

E-mails 16 515 29 195 Telephone Calls 24 817 23 805 MAESTRO Contacts*

1 192

Cases Opened 2 196 2 306 Cases Resolved 2 196 2 288 Ave Time to Close Case 6 Days 4 Days

* Implemented 04/07/2016

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ROADSIDE ASSITANCE

44 54 67 56 81 61 27 78 200 50 100 150 200 250 Jan 2016 Feb 2016 Mar 2016 Apr 2016 May 2016 Jun 2016 Jul 2016 Aug 2016 Sep 2016

CASE TOTALS PER MONTH

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CALL CENTRE

Plan for centralised Call Centre.
Multi-skilled Consultants.
Quicker turn-around times.
Call logging system.

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THANK YOU.

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Craig Roberts

Mazda Southern Africa

Head of Sales

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SALES OPERATIONS

Dealer Network Update.
Sales Performance 2016.
Sales Volume Plan 2017.
Tactical Sales Plan 2017.
MSA Vehicle Stock Allocation.
Dealer Marketing Fund.
Mazda Financial Services.
BT-50 Next Generation.
WIP

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DEALER NETWORK UPDATE

Dealer Financial Update.
Distribution & Logistics.
Representation Plan.
Facilities Update.
NADA DSI 2016.
Mazda Satisfaction Index [CSI].
MSA ODUS [Owner Data Update System].

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DEALER FINANCIAL UPDATE

Dealer PBT
GP PNUR
Service PBT
Parts PBT

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DEALER PBT 2016 YTD & GP PNUR 2016 YTD

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SERVICE & PARTS PBT 2016 YTD

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DISTRIBUTION & LOGISTICS

Deliveries
Late Deliveries
On Time
Damaged Vehicles

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DISTRIBUTION & LOGISTICS

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DISTRIBUTION & LOGISTICS

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REPRESENTATION PLAN

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FEDAUTO MAZDA NEWCASTLE

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MEKOR MAZDA CONSTANTIABERG

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SENTRACOR MAZDA LADYSMITH

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BB MAZDA POLOKWANE

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MAZDA CLEARWATER [ROODEPOORT]

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NADA DSI 2016

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Mazda Satisfaction Index

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MAZDA SATISFACTION INDEX [CSI] - SALES SURVEY

Q1. How would you rate the Sales Executive’s Mazda Product & Services

knowledge?

Q2. Were you offered a test drive?
Q3. Where you kept informed of the progress of your vehicle order and the

Sales process?

Q4. Rate your overall satisfaction with your purchase experience?
Q5. Would you recommend this dealer?

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MAZDA SATISFACTION INDEX [CSI] - SALES SURVEY

Q1 & Q4 : will require a rating between 1 to 5 – this will deliver a score which will be presented as a percentage. Illustrated as such: - 5 people completed the survey: Person1 : (2) Person2 : (3) Person3 : (5) Person4 : (4) Person5 : (1) Total : 15/25 = 60% Q2, Q3, Q5 : Straight forward Yes or No – resulting in a score which can also be expressed as a percentage. (Yes = 1, No = 0) 5 people completed the survey of which 3 answered yes : 3/5 = 60%

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MAZDA SATISFACTION INDEX [CSI] – CUSTOMER SERVICE

Q1. Could the dealer accommodate you within your requested timeframes?
Q2. Rate your booking experience?
Q3. Was your vehicle fixed right the first time?
Q4. Rate you overall satisfaction with this service experience?
Q5. Would you recommend this dealer?

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MAZDA SATISFACTION INDEX [CSI] – CUSTOMER SERVICE

Q2 & Q4 : will require a rating between 1 to 5 – this will deliver a score which will be presented as a percentage. Illustrated as such: - 5 people completed the survey: Person1 : (2) Person2 : (3) Person3 : (5) Person4 : (4) Person5 : (1) Total : 15/25 = 60% Q1, Q3, Q5 : Straight forward Yes or No – resulting in a score which can also be expressed as a percentage. (Yes = 1, No = 0) 5 people completed the survey of which 3 answered yes: 3/5 = 60%

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MAZDA SATISFACTION INDEX [CSI] –DASHBOARD

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MSA ODUS [OWNER DATA UPDATE SYSTEM]

MSA have set a goal to achieve automated updating of it’s owner data.
MAESTRO to be an integral part.
Cross Referencing of business partners owner data bases i.e. Mazda Financial

Services, Wesbank, Automobile Association, Innovation and Transunion.

Cross referencing the Mazda VIN# against the latest updates to the above data

bases.

Mobile phone “engagement” to allow owner updates.
Customer Updates automatically fed back into MAESTRO.
Quality customer owner data can be extracted for whatever purpose required.
Increased accuracy and cost effectiveness.

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MAZDA LEAD MANAGEMENT

MazdaHub
A lead distribution and management system for MSA and it’s dealers.
Utilizes existing dealer Lead Management Systems.
Allows for all MSA generated leads to be directly loaded/sent to dealers

systems.

Gathers lead activity KPI’s by dealer and sends back to MazdaHub.

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SALES PERFORMANCE 2016 – WHERE WE WILL FINISH

2016 2016 Objective 2016 2016 Actual O/ O/(U) UPM Mazda2 2,000 1,930 (70) 161 Mazda3 2,660 2,795 135 233 Mazda6 60 10 (50) 1 MX-5 50 118 68 10 CX-3 2,050 2,505 455 209 CX-5 3,900 3,975 75 331 BT-50 900 687 (213) 57 Total 11,620 12,020 400 400 1,002 Market 612,000 546,675 (65,325) 45,556 Share 1.90% 2.20% +0.3 pts 2.20%

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SALES VOLUME PLAN 2017

MSA Industry Forecast 2017.
MSA 2017 Objective.
MSA 2017 Receipts / Arrivals.

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INDUSTRY FORECAST

2016 Actual 2017 Forecast O/ O/(U) Light 73,363 73,780 1% Small 53,903 54,909 2% Medium 17,988 16,395

9%

Compact SUV 35,534 37,074 4% Medium SUV 35,561 38,158 7% Sports 1,043 1,044 0% PU 109,396 105,782

3%

Other 219,887 219,858 0% Market 546,675 547,000 0% 0% Mazda Segments 326,788 327,142 0% 0% Mazda Segments % 60% 60% 60% 60% 0% 0%

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2017 OBJECTIVE

2016 Final 2017 Objective O/(U) UPM Mazda2 1,930 1,939 9 162 Mazda3 2,795 2,799 4 233 Mazda6 10 61 51 5 MX-5 118 75 (43) 6 CX-3 2,505 3,012 507 251 CX-5 3,975 4,303 328 359 BT-50 687 861 174 72 Total 12,020 13,050 1,030 1,088 Market 546,675 547,000 325 45,583 Share 2.2% 2.4% +0.2 pts 2.4%

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RECEIPTS & ARRIVALS – WILL WE HAVE ENOUGH STOCK

Stock + receipts Total Stock 2017 2017 Forecast Stock Mths Supply Model Q1 Q1 Q2 Q2 Q3 Q3 Q4 Q4 CY CY CY CY Dec-16 Mazda2 722 628 446 481 2,277 1,939 338 2.1 Mazda3 1,008 768 753 733 3,262 2,799 463 2.0 Mazda6 22 30 30 82 61 21 1.0 CX-3 1,176 777 776 766 3,495 3,012 483 1.9 CX-5 1,463 1,304 1,120 1,218 5,105 4,303 802 2.2 MX-5 42 14 15 14 85 75 10 1.6 BT-50 282 274 207 225 988 861 127 1.3 Total 4,693 3,787 3,347 3,467 15,294 13,050 2,244 2.1 Receipts

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DEALER OBJECTIVE 2017

2016 Task UPM 2017 Task UPM Base Target 10,400 867 11,682 974 Stretch (+10%) 11,440 953 12,850 1,071 MSA Demo Fleet 180 15 200 17 Total 11,620 968 968 13,050 1,088

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MSA VEHICLE STOCK ALLOCATION

2017 Demo & Courtesy Program will be retained.
BT-50 Courtesy Program as part of launch offer.
MX-5 RF Allocations only 58 units.
BT-50 will see 332 [ D/C’s only] vehicles in Q1 2017.
Dealer Margins on the MX-5 and BT-50 will be 12%.

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TACTICAL SALES PLAN 2017

Mazda2 - Retain MFS Finance offer strategy with monthly installment.

Supported with retail television, digital and print advertising.

Mazda3 - Retain MFS Finance offer strategy with monthly installment.

Supported with retail television, digital and print advertising.

CX-3 – MFS Finance offer in place can be launched if required.
CX-5 – Retain MFS Finance offer strategy with monthly installment.

Supported with retail television, digital and print advertising.

BT-50 - Launch of New Generation with increased “Added Value” in segment

i.e. unlimited warranty and service plan. Supported with retail television, digital and print advertising.

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CORPORATE SALES STRATEGY

The MSA Corporate Sales Strategy will:

Will not do rental sales.
Will not do government sales.
Will not be MSA direct Sales.
All sales channeled through dealers.
Will target smaller fleet and corporate buyers who expect different treatment.
MSA will target specific car lines within the CS offering.

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DEALER MARKETING FUND

2016 Contributions.
2016 Advertising Activity.
2016 Fund Status.

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2016 CONTRIBUTIONS

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2016 ADVERTISING ACTIVITY

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2016 FUND STATUS

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MAZDA FINANCIAL SERVICES

MFS 2016 Performance YTD.
Approval Rate.
Conversion Rate.
Market Share.
Production & DIC.
Contract Term.
New for 2017.

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MFS 2016 PERFORMANCE YTD

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APPROVAL RATE/CONVERSION RATE/MARKET SHARE

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PRODUCTION & DIC

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CONTRACT TERM

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BT-50 NEXT GENERATION

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WIP

Mazda Vehicle Purchase Product.
1. Based on “Realistic” Guaranteed Future Values.
2. Whole of life monthly cost for owner.
3. Targeted on specific car lines.
4. Specific customer demographic.
5. Unique product with a unique way of going to market.
6. Repurchase by MSA for remarketing to Mazda dealers only.
7. Need to create a source of “Good Used Mazda’s” as a second sales channel.

SLIDE 85

THANK YOU.

SLIDE 86

Doreen Mashinini

Mazda Southern Africa

Head of Marketing & Communications

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MARKETING & COMMUNICATION UPDATE 2016

Monthly TV Presence: Mazda2, Mazda3, CX-3, CX-5 and BT-50.
Consistent Retail offers on TV.
Quarterly Tactical Template: Press Print & Digital Offers.
Outdoor Billboards, Digital Presence & Magazines Presence.
Successfully Introduced Enhanced Mazda3.
Successfully Introduced Themed Social Media Campaign.
Successfully introduced new VI.
Public Relations Exposure.
Pop-up Store A Success Story.
Mazda Celebrates 2-years of Defying Convention

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PUBLIC RELATIONS UPDATE Press Fleet

700+ test drives
Eastern Cape media

Press Releases

24 press releases
Viewed 15 657 times
Downloaded 9828 times

Awards

MX-5
CX-3

>180 180 million n unpaid press coverage received

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DIGITAL UPDATE: FANS AND LEADS

7,106

Leads

2014 2015 2016 Website 204,707 1,302,962 536% 1,506,281 15% Facebook 18,006 91,992 410% 131,747 43% Twitter 5,638 28,420 404% 37,521 32% Instagram 767 3,606 370% YouTube 337,436 484,554 43%

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FIXED MARKETING BUDGET

R11 R110,000, 0,000,000 000

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MEDIA SPEND - DEALER

R1 R10, 0,000,000 000,000

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CROSS BORDER ADVERTISING SUPPORT

Budget: April 2015 - October 2016.

Dealer Name Funds Available Barloworld Mazda Gaborone 342,000.00 R Novel Mazda Namibia 200,905.00 R Carson Mazda Swaziland 154,000.00 R

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POP-UP STORES UPDATE

28 Malls vs. 14 Malls in 2015.
Total of 1060 leads received to date.
Festival of Motoring: August 2016.

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VISUAL IDENTITY (VI) UPDATE

Corporate Identity (CI) Brochures Adverts Facility signage POS Contra Vision Signage Business Cards Billboards Furniture Visual Identity (VI)

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MERCHANDISE & PROMOTIONS

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PARTS POS

Lifetime Guarantee on Genuine Mazda Parts.

Flexi Spec Stand A4 Elegant Stand Wall mounted Fabric Frame

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CRM UPDATE

Piloting Mazdahub.
Data Cleansing.
Marketing Campaigns.

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MAZDA CUSTOMER PROFILE: WESBANK

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MAZDA OWNERS: PREVIOUS VEHICLE OWNED-WESBANK

1690 1114 547 463 345 252 218 208 185

27% 17% 8% 8% 5% 4% 3% 3% 3%

200 400 600 800 1000 1200 1400 1600 1800 0% 5% 10% 15% 20% 25% 30% Wesbank New Customer Mazda Volkswagen Ford Hyundai Nissan Toyota Chevrolet Kia

Top Conque uest t Cu Cust stome

mers

s

Total volume % of customer

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MAZDA CUSTOMER PROFILE: MAZDA2

5% 8% 40% 45%

Coloured Asian Black White

Race 31% 66%

Male Female

Gender 1% 1% 4% 5% 7% 8% 10% 14% 25% 26%

65+ 61 - 65 yrs 56 - 60 yrs 51 - 55yrs 46 - 50 0-25 yrs 41 - 45 yrs 36 - 40 yrs 31 - 35 yrs 26-30yrs

Age group up

373 214 87 85 77 40% 23% 9% 9% 8% 100 200 300 400 0% 10% 20% 30% 40% 50%

New Customers Mazda Ford Volkswagen Hyundai

Conqu quest t Cu Cust stomer mer

Conquest Mazda2 %

SLIDE 102

101

MAZDA CUSTOMER PROFILE: MAZDA3

1% 1% 4% 5% 7% 8% 10% 14% 25% 26%

65+ yrs 61 - 35 yrs 56 - 60 yrs 51 - 55 yrs 46 - 50 yrs 0 - 25 yrs 41 - 45 yrs 36 - 40 yrs 31 - 35 yrs 26 - 30 yrs

Age group

48% 51%

Male Female

Gender der

4% 6% 22% 67%

Coloured Asian White Black

Race e

553 435 181 119 102 35% 27% 11% 8% 6% 100 200 300 400 500 600 0% 5% 10% 15% 20% 25% 30% 35% 40%

New Customers Mazda Volkswagen Ford Hyundai

Conque uest st Customer

mer

Conquest Mazda3 %

SLIDE 103

102

MAZDA CUSTOMER PROFILE: MAZDA CX-3

4% 4% 37% 51% Asian Colour ed Black White

Race

41% 55% Male Female

Gend nder r

2% 3% 4% 8% 10% 10% 14% 15% 17% 18% 65+ yrs 61 - 65 yrs 0 - 25 yrs 56 - 60 yrs 46 - 50 yrs 51 - 55 yrs 41 - 45 yrs 36 -40 yrs 26-30 yrs 31-35 yrs

Age group

236 86 74 62 44 38% 14% 12% 10% 7% 50 100 150 200 250 0% 10% 20% 30% 40%

New Customers Mazda Volkswagen Ford Nissan

Conque uest st Customer

mer

Conquest Mazda CX-3 %

SLIDE 104

103

MAZDA CUSTOMER PROFILE: MAZDA CX-5

1% 1% 3% 7% 11% 11% 13% 16% 18% 18% 0 - 25 yrs 65+ yrs 61 - 65 yrs 56 - 60 yrs 51 - 55 yrs 26 - 30 yrs 46 -50 yrs 41 - 45 yrs 31 - 35 yrs 36 - 40 yrs

Age group

44% 50% Female Male

Gender

3% 6% 37% 48% Coloured Asians Black White

Race e

363 222 152 99 99 31% 19% 13% 8% 8% 100 200 300 400 0% 10% 20% 30% 40%

New Customers Mazda Volkswagen Ford Hyundai

Conqu quest t Cu Cust stomer er

Conquest Mazda CX-5 %

SLIDE 105

104

2017 MARKETING PLAN

Models Activity Television Magazine Outdoor Digital Presence Tactical Presence Dealer Launch Training Press Launch Television Magazine Outdoor Digital Presence PR Exposure Long-term Test program MX-5 Fan Engagement Dealer Launch Training Press Launch Television Magazine Outdoor Digital Presence Website Fecebook Twitter Instagram Digital Campaigns Pop-up Stores Jinba Ittai Experience Training Dealer Meetings Product Launches CRM Program Media Interactions Press Releases Media Launches Q4

Mazda2 Mazda3 Mazda CX-3 Mazda CX-5 Mazda BT-50

Q1 Q2 Q3

MX-5 Events & Promotions PR Mazda Digital Generic Mazda6 BT-50 Facelift

SLIDE 106

10 5

2017 : NEW ADVERTISING ASSETS

SLIDE 107

106

2017 FIXED MARKETING BUDGET

R120,000,000

SLIDE 108

107

MAZDA DEALER WEBSITE AUDIT

SLIDE 109

108

DIGITAL DISRUPTION

The change that occurs when new digital technologies and business models affect the value proposition of existing goods and services.

SLIDE 110

109

DIGITAL MARKETING: 2017-2018

SLIDE 111

110

2017 CALENDAR

MX-5 RF

Launch

BT-50 Facelift
Mazda2 IPM
New CX-5
Jinba Ittai

Experience

Launch of

Mazda Foundation

Dealer

Meeting: EOY

Q1 ‘17 Q2 ‘17 Q3 ‘17 Q4 ‘17

SLIDE 112

111

MAZDA JINBA-ITTAI EXPERIENCE TRAINING

DEFY CONVENTION – Philosophy and technology SKYACTIV REVOLUTION – Motor and Transmission RE ENGINEERING IN THE DETAILS – Suspension and Chassis JINBA - ITTAI EXPERIENCE – Test Drive YOUR NEW PATH – Sales room INTERIOR HARMONY – Design Skyactiv-body

6

STATIONS Experiences

SLIDE 113

112

2016 -2018 FACELIFTS

Safety

Advan anced ed SCBS TSR R

¡-ACTIVSENSE

Skyactiv vehicle dynamics Human centered Philosophy

Driving Dynamics Craftsmanship

SLIDE 114

113

NOMENCLATURE UPDATE

Orig iginal inal Base se

Only on

Mazda3 Activ ive-Entry ntry

Steel/alloy

wheels

Body colour:

mirror/door handles

No Fog lights
4 Speakers

Dynam amic ic-Mid Mid

Alloy wheels
Leather Seats
Engine size
Electric/power

features

Front fog lights

Indivi vidu dual al-High High

Alloy wheels

(17-inch)

Leather Seats
Engine size

(2.0L/2.5L)

Added safety

features

Added driving

dynamics

Park assist
Bose system

Brand and Flagsh ship ip

Alloy wheels

(18/19-inch)

Sunroof
Engine size

(2.0L/2.5L)

Performance

Plus s Rang nge e

Blind Spot

Monitoring

Lane

Departure Warning

Smart City

Brake Support

Driver

Attention Alert

Auto Folding

mirrors

SLIDE 115

114

MAZDA CX-3 ENHANCEMENTS

2.0L 2.0L Activ ive e 6MT G-Vectoring 2.0L Activ ive 6AT T G-Vectoring 2.0L Dynam amic ic 6MT G-Vectoring 2.0L Dynam amic ic 6AT G-Vectoring 2.0L Indiv ividual idual 6AT G-Vectoring Chrome Side Door Garnish NEW EW 2.0L 2.0L Indiv ividu idual al Plus s 6AT Blind Spot Monitoring Lane Departure Warning Smart City Brake Support Driver Attention Alert Auto Folding mirrors

Launch Timing: December 2016

SLIDE 116

115

MX-5 RF (RETRACTABLE FASTBACK)

2.0L Roa

adst

ster r Coupe 6MT

Adaptive Front

Lighting

Lane Departure

Warning

Navigation

2.0L Roa

adst

ster r Coupe 6AT

AT Shift switch
Blind Spot Monitor

Launch Timing: February 2017

SLIDE 117

116

MAZDA BT-50 FACELIFT: 9 MODEL LINE-UP

BT-50 SGL 2.2L DE SLX 4X2 6MT
BT-50 RAP 2.2L DE SLX 4X2 6MT
BT-50 RAP 2.2L DE SLE 4X2 6AT (New)
BT-50 RAP 3.2L DE SLE 4X4 6AT (New)
BT-50 DBL 2.2L DE SLX 4X2 6MT (New)
BT-50 DBL 2.2L DE SLE 4X2 6MT
BT-50 DBL 2.2L DE SLE 4X2 6AT (New)
BT-50 DBL 3.2L DE SLE 4X4 6MT
BT-50 DBL 3.2L DE SLE 4X4 6AT

SLIDE 118

117

MAZDA BT-50 SPEC WALK

SLX X

Locking Rear Diff (LRD)
Tailgate Lock
Bluetooth Voice Control
16 Alloy Wheels
Cloth Seats
Integrated Audio System
Temperature Display
Front Power Window
Airbags D+P = S/C only
Airbags Side & Curtain
Side Step (none of S/C)
Audio Steering Switches
Cruise Control

SLE E

Dual Zone ATC Aircon
Leather Seats (only DBL SLE)
17 Alloy Wheels
Chrome Power Windows
Integrated Audio System – high
Headlamps Auto on/off
Rain Sensing Wipers
Park Sensors
Reverse Camera (only DBL SLE)
Auto Dimming Mirror
Electric Driver Seat Adjustment
Solid Rear Window

SLIDE 119

118

SPEC COMPARISON- DOUBLE CAB 3.2L SLE 6AT 4X4

Ford Ranger 3.2LTD LTDCi i XLT 6AT Hi-Rid Rider 4X4 Mazd zda BT-50 50 3.2L L 6AT SLE 4X4 Toyot

ta Hilux

ux 2.8 8 GD-6 6AT Raid ider 4X4

Key Features R577 900

147 kW @470 Nm

Nm

6-Airb

irbag ags

Knee

e airbag ag

17” Alloy wheels
Cruise

uise contro trol

Rever

erse Camer mera

Parki

king ng Sens nsors

rs
Leather

ther Seats

Dual

al Zone ne ATC ATC

Auto

to headlam lamps

Dayti

time me runn nnin ing lights hts

Rain

in Sensor wipers

ABS+ESP+EBD+

BD+HA HAC

Key Features R555 700

147 kW @470 Nm
6-Airb

irbag ags

17” Alloy

loy wheels ls

Cruise

uise contro trol

Rever

erse Camer mera

Parki

king ng sensors

rs
Leather

ther seats

Dual

al auto

A/C
Auto

to headlam lamps

Rain

in sensing ing wiper ers

ABS+ESP+DS

DSC+HL HLA+LAC

VW Amarok

k 2.0

BiTD TDi i 4Mot

tion

ion 8AT AT

Key Features R580 200

132kW@4

@400Nm Nm

6-Air

irbags

17” Allo

loy wheels els

Cruise

uise contro trol l

Dual

al Auto to A/C

Dayti

time me runn nnin ing lights hts

Park sensors
rs
Cloth
th seats
ABS+TCS

CS+EBD+ BD+ESP

Key Features R563 500

130kW@3

@380Nm Nm

6-Airb

irbag ags

18” Alloy wheels
Cruise

uise contro trol

Dual

al Auto to A/C

Dayti

time me runn nnin ing lights hts

Navi

vigatio ation n

Leather

ther seats

ABS+EBD

BD+BA BAS+ECS+TRAC

Isuzu KB 300 D- TEQ LX 4X4 5AT

Key Features R573 500

130 kW @450 Nm
6-Airb

irbag ags

Knee

e Airbag ag

17” Alloy wheels
Cruise

uise contro trol l

Rever

erse camer era

Cloth
th Seats
Dual

al Auto to A/C

Auto

to headlam lamps

Dayti

time me runn nnin ing lights hts

ABS+BA+EBD+

BD+HA HAC+ C+TRAC

SLIDE 120

119

MAZDA BT-50 LAUNCH TIMING

Activities Dec 2016 Jan 2017 Feb 2017 Mar 2017 Sell pack End Dec Press launch End Jan Early Product Training Mid POS Mid Public Introduction 1 March

SLIDE 121

12

MAZDA2 ENHANCEMENTS

1.5L 1.5L Activ ive e 6MT

No Change

1.5L 1.5L Dynam amic ic 6MT/6AT 6AT

LED Front fog

lamps

Cruise Control

1.5 Indivi vidu dual 6MT/6AT 6AT

LED Front fog

lamps

Cruise Control

NEW EW 1.5 Indivi vidu dual Plus us 6AT

Back up

monitor

Rear Park

Sensors

Auto Air Con
Lane

Departure Warning

Leather Seats
Side + Curtain

A/B 1.5L Hazumi i 6AT

Blind Spot

Monitoring

Launch Timing: May 2017

SLIDE 122

SLIDE 123

122

NEW CX-5

2.0L Activ ive e 6MT/6AT 6AT

LED Headlamps
LED Front fog lamps
Auto headlamp

leveling

Rr Ventilation
Electronic Park

Brake 2.0L Dynam amic ic 6MT/NE NEW *6AT AT

Leather Seats
Power driver

seats 2.2 2.2L DE Activ ive e 6AT

110 →129kW
380Nm →420Nm
Auto Rain Sensor

wipers

Auto on/off headlamp
Back-up monitor

2.5L 2.5L Indiv ividu idual al 6AT

Blind Spot

Monitoring

Lane Departure

Warning

Smart City Brake

Support

Driver Attention

Alert

Tail Lift Gate
HUD

2.2L 2.2L DE Aker era a 6AT

129kW
420Nm

Launch Timing: June 2017

SLIDE 124

123

MAZDA6-QUALITATIVE STUDY

Proposed model line-up
Mazda6 2.5L Individual Plus
Mazda6 2.2L DE Atenza Plus
Monthly Volume: 20-30 units
IPSOS : Qualitative study
Test Brand strength
Price Points.
Results end November 2016
Launch timing: May/June 2017

SLIDE 125

124

MAZDA ACCESSORIES UPDATE

MSA studying Accessories Business.
MSA acknowledges the potential of accessory business.
Most of accessory sales is on safety items.
MSA required level of loyalty from Mazda dealers.

SLIDE 126

THANK YOU.

SLIDE 127

David Hughes

Mazda Southern Africa

Managing Director

SLIDE 128

127

SLIDE 129

128

SLIDE 130

129

SLIDE 131

130

SLIDE 132

131

SLIDE 133

132

DIGITAL DISRUPTION

Digital Disruption

…..and its heading our way

SLIDE 134

133

SLIDE 135

134

DIGITAL DISRUPTION

SLIDE 136

SLIDE 137

136

SLIDE 138

137

SLIDE 139

138

SLIDE 140

139

SLIDE 141

140

SLIDE 142

141

SLIDE 143

142

SLIDE 144

143

SA ECONOMIC STATISTICS

10 11 12 13 14 15 16 17

USD/ZAR

ZAR/USD 11 12 13 14 15 16 17 18

EUR/ZAR

ZAR/EUR 6 6.5 7 7.5 8

ZAR/JPY

JPY/ZAR

20.0%
15.0%
10.0%
5.0%

0.0% 5.0% 10.0% 15.0% 20.0%

ZAR / USD, ZAR, JPY

ZAR/USD ZAR/EUR JPY/ZAR 10.10% 10.15% 10.20% 10.25% 10.30% 10.35% 10.40% 10.45% 10.50% 10.55%

Prime rate

Prime rate 5.20% 5.40% 5.60% 5.80% 6.00% 6.20% 6.40% 6.60% 6.80% 7.00% 7.20% Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16

CPI

CPI 0.0% 1.0% 2.0% 3.0% 4.0% 5.0% Jan-16 Feb-16 Mar-16 Apr-16 May-16 Jun-16 Jul-16 Aug-16

SA National Retail Sales Growth (YoY)

Retail Sales

3.0%
2.0%
1.0%

0.0% 1.0% 2.0% 3.0% 4.0% 2015 Jun 2015 Sep 2015 Dec 2016 Mar 2016 Jun

GDP Growth (QoQ annualized growth)

2015 Jun 2015 Sep 2015 Dec 2016 Mar 2016 Jun

16
14
12
10
8
6
4
2

2015 Jun 2015 Sep 2015 Dec 2016 Mar 2016 Jun

Consumer Confidence Index

Consumer Confidence Index 1000 1100 1200 1300 1400

GOLD(USD)

GOLD(USD) 220 230 240 250 260 270 280 290

Dow Jones Commodity Index

Dow Jones Commodity Index TR 20 25 30 35 40 45 50 55

Brent Crude Oil Spot(USD)

Brent (USD)

SLIDE 145

144

WHAT WILL HAPPEN

The world as we know it WILL NOT end.
The market may retract but we will still sell cars.
We have been here before (many times).
Some of our competitors will retreat to the air raid shelter or curl in

the fetal position, panic or wind back marketing (The cardinal sin).

If we stay on the front foot, go towards our focus,

collectively don’t blink, continue to spend on marketing, Mazda can emerge from any downturn in a better position than we went in.

SLIDE 146

145

GENERAL ISSUES

Protect our data base (MAESTRO)

Costs less to keep a customer

Collect and name and phone number (minimum) 100%.
Update records for on sold demos and Mazda used cars.
Lets Build our Customer Experience Program together.
Expose the brand through Pop-Up Stores.
Separate Dealer Financials.
Upgrade Knowledge.
Empower staff to make decisions.
Support our CSI program.

SLIDE 147

146

WHAT WE NEED YOU TO DO?

Ensure wholesale facilities keep pace with growth.
Manage a lean inventory pipe line.
Ensure facilities meet the demand for sales, service and

parts growth.

Select the right staff and invest in training.
Put the customer First and work back from there.
Its ok to Care.

SLIDE 148

THANK YOU.