Mazda 2007 Annual Report Download - page 11
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introduction of the Mazda CX-9 in the
North American market. As Mazda’s
“Zoom-Zoom” approach to products is
earning widespread acclaim, product-led
growth continues to generate tangible
benefits for our business.
The Mazda Momentum Plan
concluded in March 2007. What were
Mazda’s achievements during the
plan period? What are some upcoming
challenges?
Under Mazda Momentum, we laid the
foundation for product-led and full-fledged
future growth. Our specific initiatives
focused on four areas: reinforcing R&D,
strengthening key markets, enhancing
global efficiencies and synergies, and
leveraging human resources.
In the first area, reinforcing R&D, we
have steadily reinforced our development
resources and infrastructure. Doing so
has allowed us to roll out the 16 market-
focused models as planned.
With regard to strengthening key
markets, our U.S. exclusive dealership
ratio reached 52%, which exceeded the
target. We are making steady progress
in strengthening our sales capacity by
building new dealerships in Japan and
expanding our European sales networks.
Our Nanjing engine plant came on line
this past April, and plans call for vehicle
assembly operations to commence by
year’s end.
Mazda extended its consecutive
years of record earnings in fiscal
2006, the final fiscal year of Mazda
Momentum. What factors contributed
to this achievement?
We set new earnings records in all
categories in fiscal 2006, surpassing the
records set in fiscal 2005. In addition to
higher unit sales and an improved model
mix, and the impact of a weaker yen,
we benefited from cost reductions that
exceeded increases in raw material prices.
Consequently, in fiscal 2006, consolidated
operating income rose 28.4%, to ¥158.5
billion and ordinary income increased
25.9%, to ¥127.8 billion. Net income rose
10.5%, to ¥73.7 billion. However, it was
affected by such extraordinary items as
the transfer to the government of the
substitution portion of employee pension
fund liabilities and a loss on impairment
registered in fiscal 2005. Excluding
these one-time items, effective annual
growth in net income was 26.2%. The
operating income ratio was 4.9%, a
solid 0.7 percentage point improvement.
We succeeded in maintaining overall
growth in sales volumes, thanks to solid
sales in North America and Europe and
despite sluggish results in Japan and
China. We launched the Mazda MPV in
Japan in February 2006 and the Mazda
CX-7 in North America in May and in
Japan in December. In January 2007,
we followed up those models with the
Q
Q
Target Result Difference
Operating Income (billions of yen) 100.0+158.5 58.5
Net Debt to Equity Ratio <100% 49% 51 Pts
Consolidated Wholesales
(thousands of units) 1,250 1,177 (73)
Mazda Momentum Achievements As of March 31, 2007