Mazda 2012 Annual Report Download - page 8

To Shareholders and Investors
I would like to express my gratitude to
shareholders and other investors, and all of
the Mazda Group’s stakeholders, including
customers, suppliers, and local communities
for your continued support and understanding.
In February 2012, we announced a Structural
Reform Plan to strengthen our Framework for
Medium- and Long-Term Initiatives.
During the fiscal year March 2012, we experienced a succession of once-in-a-generation
events, with operations halted as a result of the unprecedented damage from the Great East
Japan Earthquake, summer electrical power shortages, the European financial crisis, a
record-breaking strong yen, and flooding in Thailand.
In terms of financial results, the combination of the yen’s appreciation against major
currencies and declines in production and sales volumes led to a ¥292.6 billion (13%) decline
in net sales, to ¥2,033.1 billion. Operating income declined ¥62.6 billion, to a ¥38.7 billion loss,
from changes in volumes and the model mix, and the strong yen. In addition, with asset
impairment expenses, loss on disaster from the earthquake, restructuring expenses, and a
write-off of deferred tax assets, the net loss widened ¥47.7 billion, to ¥107.7 billion. In terms
of quarterly profits, after bottoming out in the third quarter, we achieved profitability at all
levels in the fourth quarter.
Despite this adverse operating environment, we implemented a variety of measures that
yielded significant results in the year.
On the product side, the new Mazda Demio (overseas name: Mazda2) and Mazda Axela
(overseas name: Mazda3) with SKYACTIV technology were well received for their overall
craftsmanship and SKYACTIV features. SKYACTIV technology is highly valued and has
already won 29 awards and continues to do so. For example, the new Demio won the Car of
the Year Japan Special Award and the 2011 Nikkei Superior Products and Services Awards for
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, the highest possible safety rating, by the U.S. Insurance
Institute for Highway Safety (IIHS). The new Mazda CX-5 has been highly evaluated in the
media. For example, the CX-5 was named the Crossover of the Year by Autobytel, and was
rated No. 1 for drive by
Auto Bild , a leading German automotive magazine. We have also had
a lot of success in raising brand value, including a Mazda car being recognized for having the
Highest Residual Value for the third consecutive year in the United States.
Takashi Yamanouchi
Representative Director, Chairman of the Board, President and CEO
Review of the Fiscal
Year March 2012
Although we recorded a loss,
due primarily to an adverse
external environment
exacerbated by the yen’s
appreciation to a record-
breaking high level, results
bottomed out in the third
quarter and we achieved
profitability at all levels
in the fourth quarter
Operating Income (Loss)
Billions of yen
(23.1)
1.5
15.6
(32.7)
1Q 2Q 3Q
2012
4Q
(Year ended March 31)
Mazda Annual Report 2012
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