Mazda 2015 Annual Report Download - page 10

Interview with the Executive Vice President
Q1 What specifically do you mean by the “qualitative
growth” referred to in Structural Reform Stage 2?
Qualitative growth means the strengthening of the busi-
ness base needed for sustainable growth in areas includ-
ing brand, networks, product development, and raising
global production efficiency. During the period covered
by Structural Reform Stage 2, we aim to strengthen the
business base in these areas to become a brand that
generates demand that exceeds supply.
Structural Reform Stage 2 involves taking the major
initiatives of the Structural Reform Plan to the next level
in order to achieve steady growth in sales volume and
qualitative growth. During the three-year period covered
by Structural Reform Stage 2, we intend to strengthen
our business base in the areas of development, sales,
production, and finance, leading to further sustainable
growth from the March 2020 fiscal year and beyond.
In terms of products and development, we will continu-
ally update our SKYACTIV products while developing
and introducing SKYACTIV GEN2 (Generation 2) models
equipped with next-generation technologies. In brand and
sales, we will promote innovation on the sales frontline
to instill our strategy of realizing right-price sales and
enhancing brand experiences. With regard to global pro-
duction, we will roll out Monotsukuri Innovation globally
and maximize capacity utilization at major production
sites. In terms of finance, we will build a solid financial base
that facilitates stable, sustainable growth, while also rais-
ing the dividend payout ratio.
Through qualitative growth in each of these areas, we
will provide customers with products that are attractive in
terms of both driving pleasure and outstanding environ-
mental and safety performance, and we will deliver a Mazda
brand experience that exceeds customers’ expectations
during the entire time they own their cars to build strong
bonds with customers and further enhance brand value.
Q2 What is your policy regarding the strengthening
of the financial base?
We aim to build a solid financial base that is resistant to
changes in the external environment, including unfore-
seen economic crises, changes in trends in demand in
major markets, and drastic changes in exchange rate
levels, to attain stable, sustainable growth.
Mazda’s equity ratio as of March 31, 2015, was 35.2%,
and net interest-bearing debt was ¥171.9 billion. It is essen-
tial that we generate stable profit and cash flow to achieve
our target for the March 2019 fiscal year of having an
equity ratio of at least 45% and achieving a net cash posi-
tion at the soonest date possible. Based on steady growth
in sales volume, we intend to raise the equity ratio through
enhanced profitability from qualitative growth and to gen-
erate cash flow to reduce net interest-bearing debt. Along
with strengthening the financial base, we aim to raise
the dividend payout ratio in stages, to at least 20%.
Furthermore, by effectively utilizing management re-
sources, we intend to maintain return on equity (ROE) at a
level between 13% and 15% during the period covered by
Structural Reform Stage 2.
The entire Mazda Group will work as one toward the
achievement of the various measures included in
Structural Reform Stage 2 to build a solid financial base
that facilitates stable, sustainable growth from the March
2020 fiscal year.
Q3 We understand that because a large portion of
Mazda’s production is in Japan, exchange rate
movements have a large impact on financial results.
How are you addressing exchange rate movements?
We intend to maintain our domestic operations, while
meeting growth in sales volume going forward with higher
levels of production overseas. With the new plant in
We aim for stable, sustainable growth
by establishing a solid financial foundation.
Akira Marumoto
Representative Director and
Executive Vice President
Equity / Equity Ratio
■ Equity (Billions of yen) (left scale) Equity Ratio (%) (right scale)
500
50
1,000
(Forecast)(Forecast) (Forecast) (Forecast)
2013 2014 2016 2017 20182015 2019 (As of
March 31)
Mazda Annual Report 2015
08
Message from Management
CONTENTS
Foundations Underpinning
Sustainable Growth
Growth Strategy
Introduction
Review of Operations
Corporate Data