Mazda 2012 Annual Report Download

Download and view the complete annual report

Please find the complete 2012 Mazda annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 60

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60

Annual Report 2012
Year ended March 31, 2012

Table of contents

  • Page 1
    Annual Report 2012 Year ended March 31, 2012

  • Page 2
    ..., North America, Europe, China, and Other Markets Major Product Lineup Business Management System Financial Section Corporate Data/Stock Information 2 4 6 10 13 18 20 23 24 27 57 Forward-Looking Statements Statements made in this Annual Report with respect to Mazda's plans, strategies, and future...

  • Page 3
    ... Zoom-Zoom Mazda announced its long-term vision for technological development in March 2007. Mazda plans to improve the average fuel economy of all Mazda vehicles sold worldwide 30% by 2015, compared with the 2008 levels. Building Block Strategy Mazda is pursuing a Building Block Strategy...

  • Page 4
    ... of cost improvements. Despite strong sales in North America and the ASEAN region, economic uncertainty in Europe, the impact from the Great East Japan Earthquake, and declines in exports from the looding in Thailand resulted in a 2% decline in global sales volume, to 1,247,000 units. The Group took...

  • Page 5
    ... 2010 2011 2012 (Years ended March 31) (Years ended March 31) Capital expenditures Depreciation and amortization (Years ended March 31) Equity/Equity Ratio Billions of yen/% Net Financial Debt/ Net Debt-to-equity Ratio Billions of yen/% Research and Development Costs/ Share of Net Sales...

  • Page 6
    ... (excluding China, Australia, New Zealand) 2010 2011 2012 80 40 87 92 Middle East, Africa (excluding Israel) 2010 2011 2012 34 35 Australia Japan Headquarters 1 2 3 (Number of dealerships: 1,080) North America Regional headquarters /R&D Production facilities Distributors 12 13 14 15 16...

  • Page 7
    ... 44 39 Japan North America Europe Other markets 3,475.8 2010 2011 2012 2,535.9 2,163.9 6 2010 6 2011 6 2012 2,325.7 Central and South America (excluding Mexico) 2,033.1 New Zealand 2008 2009 2010 2011 2012 (Years ended March 31) China Regional headquarters R&D Production facilities...

  • Page 8
    ...Year Japan Special Award and the 2011 Nikkei Superior Products and Services Awards for 15.6 Excellence. SKYACTIV engine was named the 2012 Automotive Researchers' and Journalists' Conference of Japan (RJC) Technology of the Year. The new Mazda CX-5 crossover SUV was named a Top Safety Pick for 2012...

  • Page 9
    ... 2013, we will introduce a new Mazda Atenza (overseas name: Mazda6) equipped with the "i-ELOOP" regenerative braking system that improves fuel economy in real-world driving conditions. We also plan to launch a SKYACTIV-equipped hybrid vehicle in the iscal year March 2014. Mazda Annual Report 2012...

  • Page 10
    ... joint-venture manufacturing company, and we plan to begin production from the fall of 2012. We intend to expand our sales network throughout the ASEAN region, along with increasing our truck production capacity in Thailand. In Central and South America, plans for production in Mexico are proceeding...

  • Page 11
    ...-equity ratio Book value per share 19% 155% ¥183 As of March 31, 2012 24% 64% ¥157 26%* 53%* * After the recognition of equity capital attributes of the subordinated loan Returns to Shareholders Mazda's policy is to determine the amount of dividend payments each iscal year, taking into account...

  • Page 12
    ... reform for the future. We will achieve sales growth in all major markets in the iscal year March 2013, on a full-year contribution from the new Mazda CX-5 crossover SUV, fully equipped with SKYACTIV technology, and the launch of the new Mazda6 (Japanese name: Q You said that signs of improvement...

  • Page 13
    ... by introducing attractive products. Demand has been recovering in the North American market, where sales are driven by the new Mazda3 (Japanese name: Mazda Axela) fully equipped with SKYACTIV technology, and we see solid sales continuing going forward. In terms of emerging countries, we see strong...

  • Page 14
    ... show its effectiveness. Orders for the new A between markets for sales and production centers. To address this, our Structural Reform Plan aims to bring the percentage of overseas production to 50%, and to achieve this, we plan to build a plant in Mexico, move to local production in Russia, raise...

  • Page 15
    ...- and Long-Term Initiatives, formulated in 2010, Mazda forecast operating income of ¥170 billion, with an operating income margin of at least 5%, and global sales volume of 1.7 million units for the iscal year March 2016. Since that time, however, our operating environment has undergone a number of...

  • Page 16
    ...of strong sales of the new CX-5 following its launch, we will release a new Mazda6 (Japanese name: Mazda Atenza) during the second half of 2012. We also plan to introduce a SKYACTIVEequipped hybrid in the iscal year March 2014. We estimate that the number of SKYACTIVequipped vehicles as a percentage...

  • Page 17
    ... current direct-injection engine Same as current transmission Cost Improvement SKYACTIV-G SKYACTIV-DRIVE CX-5's Cost Competitiveness The new CX-5 is Mazda's irst product to be developed from scratch using Monotsukuri Innovation. With cost competitiveness that can generate a proit at exchange rate...

  • Page 18
    ...to six from current three Increase number of showrooms to 330 by the end of 2015 Begin discussions with Bermaz regarding the establishment of a joint venture production and sales company in Malaysia Central and South America Build vehicle assembly and engine assembly plants in Mexico (scheduled to...

  • Page 19
    ... markets Overseas Production Strategy Year ended March 31, 2012 Year ended March 31, 2013 Year ended March 31, 2014 Year ended March 31, 2015 Year ended March 31, 2016 Begin discussions for establishment of joint venture production and sales company in Malaysia [Procurement strategy to achieve cost...

  • Page 20
    ...be mainly petroleum-based, and that the majority of vehicles will still be powered by internal combustion engines. With this outlook, Mazda is working on the development of Anticipated Expansion in Adoption of Environmental Technologies (Through 2020) Graphic representation of global market share of...

  • Page 21
    ...SKYACTIV-DRIVE. The new Mazda CX-5, fully equipped with SKYACTIV technology in the body and chassis in addition to the engine and transmission, was released in 2012 and is receiving high praise around the world. We will gradually launch the new Mazda6 (Japanese name: Mazda Atenza), globally starting...

  • Page 22
    ... 2,000 units per month). Orders for the 2013 (Outlook) 2009 2010 2011 2012 new CX-5, released in February 2012, reached approximately 16,000 units in the two months following the release, surpassing our full-year sales plan of 12,000 units. In addition, diesel engine vehicles accounted for...

  • Page 23
    ... 2012 were higher year-on-year as a result of stepped up sales promotions since the beginning of 2012 and the launch of the new CX-5. The new CX-5, which we launched in Europe during the fourth quarter, is off to a solid start, with roughly 7,000 units sold in major countries like Russia and Germany...

  • Page 24
    ... also plan to open large suburban service centers to address the increase in the number of Mazda customers in China. Sales volume Market share (Years ended March 31) Other Markets Affected by the looding in Thailand, our sales volume in other markets declined 5%, to 263,000 units. We will work to...

  • Page 25
    ... Sales markets 90,000 CX-9 BT-50 Sales markets: Global sales volume Sales markets 44,000 Global sales volume Sales markets 51,000 Japan China North America Other markets Europe *1. Global sales volume is for the iscal year March 2012, sales markets are as of March 31, 2012. *2. Vehicle...

  • Page 26
    Business Management System For more information about corporate governance and CSR, please refer to "Mazda Sustainability Report 2012." http://www.mazda.com/csr/download/ Regular meetings of the full-time corporate auditors and the Global Auditing Department are held monthly to exchange opinions ...

  • Page 27
    ... Shobuda Oversight of Global Marketing, Sales and Customer In charge of Production; General Manager, Production Service; In charge of Customer Tsunagari Innovation Engineering Div.; Assistant to the Officer in charge of and Overseas Sales; President, Mazda South East Asia Cost Innovation Ltd...

  • Page 28
    ...Standards on information security management established by the British Standards Institution (BSI). Whistleblower In principle, real name is used Report Real name/ pseudonym Report Response (where notification is possible) Mazda Global Hotline In-house contact point Mazda Global Hotline Outside...

  • Page 29
    ... and Comprehensive INCOME Consolidated Statements of Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Assurance by Key Management 28 30 32 34 35 36 55 73 Note: Financial information for the iscal year ended March 31 2011, includes the 15-month iscal period of...

  • Page 30
    ... Overseas North America Europe Other areas Cost of sales Selling, general and administrative expenses Operating income/(loss) Income/(loss) before income taxes Net income/(loss) Capital expenditures*3 Depreciation and amortization*4 Research and development costs Free cash flow*5 At the year-end...

  • Page 31
    ... of yen 2007 2006 2005 2004 2003 2002 Thousands of U.S. dollars*1 2012 ¥3,247,485 887,327 2,360,158 1,017,874 789,135...895 180,892 686,318 456,874 1,221,750 37,824 $23,365,159 5,785,720 9,488,841 3,668,024 U.S. dollars*1 ¥ 52.59 6.00 336.45 ¥ 51.53 5.00 284.28 ¥ 37.63 3.00 220.22 % ¥ 27....

  • Page 32
    ...) By market, Mazda's domestic sales were basically unchanged year on year, at 206,000 units. Strong sales of the Mazda2 and the introduction of the new Mazda CX-5 offset the effect of the Great East Japan Earthquake. Overseas, North American sales increased 9%, to 372,000 units, due mainly to the...

  • Page 33
    ...2011 2008 2010 2011 2012 (As of March 31) 2012 (Years ended March 31) Total assets Equity Equity ratio * Ratios after the recognition of equity capital attributes of the subordinated loan. Cash low from operating activities Cash low from investing activities Free cash low Mazda Annual Report...

  • Page 34
    ... Balance Sheets Mazda Motor Corporation and Consolidated Subsidiaries March 31, 2012 and 201 1 Millions of yen ASSETS 2012 2011 Thousands of U.S. dollars (Note 1) 2012 Current assets: Cash and cash equivalents Trade notes and accounts receivable (Note 4) Inventories (Note 6 and 9) Deferred taxes...

  • Page 35
    ... AND EQUITY 2012 2011 Thousands of U.S. dollars (Note 1) 2012 Current liabilities: Short-term debt (Note 4 and 9) Long-term debt due within one year (Note 4 and 9) Trade notes and accounts payable (Note 4) Accrued income taxes Accrued expenses (Note 4) Reserve for warranty expenses Other current...

  • Page 36
    ... Comprehensive income attributable to: Owners of Mazda Motor Corporation Minority interests ¥ ¥ Yen Amounts per share of common stock: Net loss (Note 2): Basic Cash dividends applicable to the year See accompanying notes. ¥(57.80) ¥(33.92) - - $(0.70) - 34 Mazda Annual Report 2012

  • Page 37
    Consolidated Statements of Equity Mazda Motor Corporation and Consolidated Subsidiaries Years ended March 31, 2012 and 201 1 Millions of yen Equity attributable to shareholders of Mazda Motor Corporation Capital and retained earnings Common stock Capital surplus Retained earnings Treasury stock ...

  • Page 38
    ...) in trade notes and accounts payable Increase/(decrease) in other current liabilities Other Subtotal Interest and dividends received Interest paid Income taxes paid Net cash provided by/(used in) operating activities Cash flows from investing activities: Payments into time deposits Proceeds from...

  • Page 39
    ... accounted for by the equity method. The consolidated financial statements include the Company and 56 subsidiaries (51 in the year ended March 31, 2011). In addition, 13 affiliates (14 in the year ended March 31, 2011) are accounted for by the equity method. The consolidated year-end balance sheet...

  • Page 40
    ... Companies, useful lives are estimated by a method equivalent to the provisions of the Corporate Tax Code of Japan. Software for internal use is amortized on a straight-line basis over the period of internal use, i.e., 5 years. Leased property Finance leases are capitalized in the balance sheet...

  • Page 41
    ... product warranty provisions and actual costs incurred in the past, taking future prospects into consideration, is recognized. Employees' severance and retirement benefits The Domestic Companies provide various types of post-employment benefit plans, including lump-sum plans, defined benefit pension...

  • Page 42
    ...income when incurred. For the years ended March 31, 2012 and 2011, research and development costs were ¥91,716 million ($1,118,488 thousand) and ¥90,961 million, respectively. Derivatives and hedge accounting Derivative financial instruments are mainly stated at fair value, and changes in the fair...

  • Page 43
    ...Investment securities consist mainly of stocks of our business partner companies and are subject to the risk of market price fluctuations and other factors. Long-term loans are provided mainly to our business partner companies. Trade notes and accounts payable, as well as other accounts payable, are...

  • Page 44
    ... securities, their fair values as well as the financial standing of their issuing entities are monitored on a regular basis. Ownership of available-for-sale securities are reviewed on a continuous basis. Management of liquidity risks related to financing (i.e., risks of non-performance of payments...

  • Page 45
    ... 2012 2011 Thousands of U.S. dollars Carrying values 2012 Available-for-sale securities: Non-listed equity securities Investment in securities of affiliated companies Total ¥ 2,842 85,050 ¥87,892 ¥ 3,251 81,177 ¥84,428 $ 34,658 1,037,195 $1,071,853 Basis of measuring fair value of financial...

  • Page 46
    ... and interest payments is used as the fair value of bonds payable. The discount rates used in computing the present value reflect the time to maturity of the bonds as well as credit risk. b) Long-term loans payable and c) Lease obligations The fair value of these liabilities is calculated by the...

  • Page 47
    ... at March 31, 2012 and 2011. Available-for-sale securities with market values as of March 31, 2012 and 2011 were as follows: Millions of yen As of March 31, 2012 Acquisition costs Carrying values Difference Thousands of U.S. dollars Acquisition costs Fair values Difference Stocks Other Total...

  • Page 48
    ..., in the case of default or certain other specified events, against all debts payable to banks. The annual maturities of long-term debt at March 31, 2012 were as follows: Year ending March 31 Millions of yen Thousands of U.S. dollars 2013 2014 2015 2016 2017 Thereafter Total ¥ 94,241 103,691 107...

  • Page 49
    ... estimated amount of all retirement benefits to be paid at the future retirement dates is allocated equally to each service year using the estimated number of total service years. For the years ended March 31, 2012 and 2011, accrued pension costs related to defined contribution plans were charged to...

  • Page 50
    ...EQUITY Under Japanese laws and regulations, the entire amount paid for new shares is required to be designated as common stock. However, a company may, by a resolution of the Board of Directors, designate an amount not exceeding one half of the price of the new shares as additional paid-in capital...

  • Page 51
    ...the following accounts in the consolidated balance sheet: Millions of yen As of March 31 2012 2011 Thousands of U.S. dollars 2012 Current assets-Deferred taxes Investments and other assets-Deferred taxes Current liabilities-Other current liabilities Long-term liabilities-Other long-term liabilities...

  • Page 52
    ... Financial Statements (Additional Information) On December 2, 2011, amendments to the Japanese tax regulations were enacted into law. As a result of these amendments, the statutory income tax rate for the Company will be reduced to 37.76% for years beginning on or after April 1, 2012 and...

  • Page 53
    ... ¥58,425 ¥ 142 (246) (311) (46) (17) (10) (67) 114 82 (3) ¥(362) ¥ 142 (246) (311) (46) (17) (10) (67) 114 82 (3) ¥(362) For forward foreign exchange contracts, fair values at year-end are estimated based on prevailing forward exchange rates at that date. Mazda Annual Report 2012 51

  • Page 54
    ...As of March 31, 2011 Contract amount Thereof due after 1 year Estimated fair value Interest rate swaps: On long-term loans payable: Where certain hedging criteria are met (*1) Forward foreign exchange contracts: Sell: U.S. dollar Euro Canadian dollar Australian dollar Sterling pound Swiss franc...

  • Page 55
    ... of corporate resources and evaluating business performance. The Company is primarily engaged in the manufacture and sale of passenger and commercial vehicles. Businesses in the Japan, North America and Europe regions are managed by the Company, Mazda Motor of America, Inc. and Mazda Motor Europe...

  • Page 56
    ... balance sheets for the years ended March 31, 2012 and 2011. Information by geographic areas The sales information by geographic areas as of March 31, 2012 and 2011 were as follows: Millions of yen For the years ended March 31 2012 2011 Thousands of U.S. dollars 2012 Japan North America Europe...

  • Page 57
    ... due inquiry, the financial statements and other financial information included in the company's annual report for the year ended March 31, 2012 are presented fairly, in all material respects, in conformity with the generally accepted accounting principles in Japan. President and Chief Executive...

  • Page 58
    Independent Auditor's Report To the Board of Directors of Mazda Motor Corporation: We have audited the accompanying consolidated financial statements of Mazda Motor Corporation and its consolidated subsidiaries, which comprise the consolidated balance sheets as at March 31, 2012 and 2011, and the ...

  • Page 59
    ..., Japan Phone: +81 (82) 282-1111 Manufacture and sales of passenger cars and commercial vehicles Head Office, Mazda R&D Center (Yokohama), Mazda North American Operations (USA), Mazda Motor Europe (Germany), China Engineering Support Center (China) Production sites: Japan: Hiroshima Plant (Head...

  • Page 60
    Mazda Motor Corporation