Mazda 2011 Annual Report Download - page 42

offset the effect of the strong yen and high raw material prices,
while at the same time proceeding with a steady pace of
investment for the future.
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What do you see as the main points for enhancing
corporate value going forward?
Mazda’s Framework for Medium- and Long-Term Initiatives looks
ahead to the March 2016 fiscal year, and includes five primary
initiatives. These are the initiatives that we intend to pursue, but
in terms of enhancing future corporate value, the main items at
this time are “sales method innovation” and “cost innovation.”
We are aiming to achieve “sales method innovation” through
the effective promotion of SKYACTIV TECHNOLOGY-equipped
vehicles. First, we want all employees, distributors, dealers, and
suppliers to fully understand SKYACTIV TECHNOLOGY. We must
understand SKYACTIV TECHNOLOGY ourselves before we can
effectively convey the appeal of this remarkable technology to
individual customers. Advertising is of course one method of
conveying SKYACTIV’s appeal, but we believe the best method is
to have customers test-drive the vehicles. We want customers in
Japan and major overseas markets as well to actually drive
these vehicles to experience first-hand their high level of driving
performance, combined with fuel economy and other superior
environmental features. In addition, we will offer these new
products at prices that are affordable for a wider range of
customers compared with hybrid and electric vehicles. By
providing superior technology at an affordable price, we plan to
raise transaction prices in order to draw the line at unnecessary
price competition. By continuing to carry out and strengthen the
programs to enhance brand value that we have implemented to
date in major markets, including the curtailing of incentives,
introduction of certified used car programs, and reinforcement
of sales networks, while at the same time implementing global
“sales method innovation” based on the introduction of
SKYACTIV TECHNOLOGY, we are aiming for maximum results.
With regard to “cost innovation,” we are first working to
improve the cost of vehicles produced in Japan. We also plan to
raise our overseas parts procurement ratio to 30% from 20%.
In addition, we will expand overseas production in emerging
markets going forward, and we will work to improve costs and
reduce exchange rate risk by raising the percentage of local
procurement.
There have been several macro environmental changes
since the financial crisis in the fall of 2008, including the yen’s
prolonged appreciation, sharply higher prices for raw
materials, and the effect of the earthquake. SKYACTIV
TECHNOLOGY, the proprietary technology that we have been
developing during that time, is about to debut. This will lead to
solid enhancement of Mazda’s brand value globally, and
accelerate our efforts in rapidly growing emerging markets.
The road to achieving the March 2016 fiscal year targets of
¥170.0 billion in operating income with ROS of 5% or more
under our Medium- and Long-Term Outlook will not always be
easy going, but I am convinced that moving forward one step
at a time with the actions we need to take now is the only
course for enhancing corporate value.
2011 2012
Outlook
2011 2012
Outlook
2011 2012
Outlook
44.7
80.0
71.6 70.0
91.0 95.0
Capital expenditures / Depreciation and amortization /
Research and development costs
Billions of yen
(Years ended March 31)
Capital expenditures Depreciation and amortization
Research and development costs
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March 2012 fiscal year March 201 1
fiscal year
Increase /
(decrease)
First half Second half Full year
Net sales 960.0 1,230.0 2,190.0 2,325.7 (135.7)
Operating income (20.0) 40.0 20.0 23.8 (3.8)
Net income (35.0) 36.0 1.0 (60.0) 61.0
Outlook for the March 2012 fiscal year Billions of yen
40 Mazda Annual Report 201 1