Mazda 2016 Annual Report Download - page 10

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Launch six new car lines (including one derivative model) that offer driving pleasure
and outstanding environmental and safety performance
Introduce the latest design, technology, and equipment to all updated models.
Achieve sustainable volume growth and reduce incentives by continuously enhancing
SKYACTIV models
Improve net revenue (transaction price)
and profitability by expanding the
CX-series lineup
Develop and introduce SKYACTIV GEN2
models
Evolve i-ACTIVSENSE advanced safety
technologies
Enhance sales with full lineup of SKYACTIV models
Improve net revenue, residual value, and customer retention
by ensuring good penetration of the right-price sales policy globally
• Educate the sales frontline globally about our products and technologies through
programs such as Driving Academy
Promote reforms at sales frontline focused on customer
care improvement and initiatives for better customer
brand experience
• Increase customer participation and interactive events
• Expand new generation stores globally
Enhance sales initiatives focused on improving customer retention
• Improve retention of SKYACTIV model customers by enhancing trade cycle management
Stepped approach for dealer network reinforcement / reorganization
Deploy Monotsukuri Innovation globally to accelerate cost improvements
• Monotsukuri Innovation developed in Japan will be deployed around the globe
Maximize production efficiency at key sites to support volume growth to
1.65 million units without building new plants
• Global swing production enables plants to supplement each other
• Improve production flexibility between passenger car and crossovers
Generate stable profit and cash flow by improving brand value through
steadily increased sales and qualitative business growth
• Strengthen financial base (improve equity and reduce net debt)
• Improve payout ratio; maintain and enhance capital efficiency
• Promote R&D and capital investment for the future
Structural Reform Stage 2
In order to realize further growth in the future, Mazda has formulated the medium-term business plan Structural Reform Stage 2, covering the period from the March 2017 to the
March 2019 fiscal years. By engaging in the main initiatives of this plan, Mazda is working to realize qualitative business growth and accelerate the improvement of its brand value.
Product and R&D
Global production and cost improvement Strengthen financial base
Global sales and network enhancement
2008 2015 2020
Average fuel economy for all cars
Improving average fuel
economy for all cars by
50% over 2008 levels
by 2020
GEN1
GEN2
Approx.
50%
Approx.
30%
Japan Hofu • Start CX-3 production in second half of March 2017 fiscal year
Ujina • Expand production capacity of CX-5 and CX-9
Overseas MMVO (Mexico) • Swing production of Mazda3 from Hofu and full utilization
Others • Expand production capacity in Thailand (CX-3) and Malaysia (CX-5)
Initiatives to Maximize Production Efficiency Target for March 2019 fiscal year (Foreign exchange rate assumptions: ¥120 / USD, ¥130 / euro)
Equity ratio
45% or more
Dividend payout ratio
20% or more
ROE
13%~15% or more
MAZDA ANNUAL REPORT 2016
8Message from
Management
Review of Operations
Drivers of Value Creation
Foundations Underpinning
Sustainable Growth
Financial Section
Contents