Mazda 2012 Annual Report Download - page 32

Management Review
Review of Operations
(Operating Environment)
In the fiscal year March 2012, the Mazda Group’s operating envi-
ronment presented challenging conditions. Overseas, the U.S.
economy followed a trend of gradual recovery, but a number of
factors contributed to instability, including the financial crises
in European countries, the floods in Thailand, and the slowdown
of economic growth in China. Overall, the recovery in overseas
markets was weak. In Japan, economic conditions remained
difficult. Reconstruction demand following the Great East
Japan Earthquake supported a certain degree of improvement
in business conditions, but adverse factors included the
continued strength of the yen and a downturn in exports due to
uncertainty about overseas economies. In this environment, the
Mazda Group successively introduced models with SKYACTIV
technology in key markets. The Group is also implementing its
“Structural Reform Plan” using SKYACTIV as the linchpin.
Accordingly, the Group took steps to secure the funds needed
for growth and strengthen its financial position through a
capital increase by public offering and a subordinated loan.
(Global Sales Volume)
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 introduction
of the new CX-5 as well as to strong sales of the Mazda2 and
the Mazda3. Sales in Russia increased, but overall European
sales were down 14%, to 183,000 units, due in part to concerns
about the unstable credit situation in Europe. In China, sales of
the mainstay Mazda3 models were strong, but sales decreased
6%, to 223,000 units, as a result of intensified competition
and lower demand for compact cars. In other markets, strong
sales were recorded in Australia and ASEAN countries, but
exports declined as a result of the floods in Thailand, and
overall sales were down 5%, to 263,000 units.
As a result, the global sales volume was 1,247,000 units,
down 2% from the previous year. Consolidated wholesales for
the year declined 8%, to 1.016 million units.
(Net Sales)
Net sales amounted to ¥2,033.1 billion, a decline of ¥292.6
billion (13%), due principally to the continued strength of the
yen against other major currencies and to decreased production
and sales volumes. Consolidated net sales broke down as
¥1,472.9 billion overseas, a ¥311.4 billion (17%) decrease, and
¥560.2 billion in Japan, an ¥18.7 billion (3%) increase.
By product, vehicles sales were down ¥196.5 billion (12%), to
¥1,510.8 billion, due to the strength of the yen against other
major currencies and to sluggish wholesales. Sales of knockdown
parts for overseas production declined ¥48.8 billion (34%), to
¥93.1 billion. Sales of parts were down ¥17.1 billion (8%), to
¥200.1 billion, and other sales decreased ¥30.3 billion (12%), to
¥229.0 billion.
(Operating Income)
Operating results worsened by ¥62.6 billion, resulting in an
operating loss of ¥38.7 billion, due to lower sales volume, a wors-
ening of the product mix, and the strong yen. Sales volume and
the product mix worsened by ¥36.3 billion, and the influence of
the strong yen worsened by ¥37.6 billion.
Selling, general and administrative expenses were reduced by
¥29.0 billion (7%), to ¥409.2 billion. This achievement resulted
from the successful implementation of cost improvement activ-
ities in all areas.
2008
Global Sales Volume
Thousands of units
2009 2010 2011 2012
1,363 1,261 1,193 1,273 1,247
2008
Net Sales/Operating Income/Net Income
Billions of yen
2009 2010 2011 2012
162.1
(28.4)
(71.5)
(6.5)
(60.0)
(107.7)
91.8
9.5 23.8 (38.7)
3,475.8
2,535.9 2,163.9 2,325.7
2,033.1
Net sales
Operating income
Net income
(Years ended March 31) (Years ended March 31)
Mazda Annual Report 2012
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