Mazda 2016 Annual Report Download - page 5

Message from President and CEO
Results Summary and Forecast
During the March 2016 fiscal year, we began the
global rollout, starting with Japan, of the new Mazda
MX-5 (Japanese name: Mazda Roadster), which incor-
porates both SKYACTIV TECHNOLOGY and KODO
design in the pursuit of
Jinba-ittai , or “horse and
rider as one,” enjoyment. The new MX-5 has won
more than 60 awards in Japan and around the world,
including the 2015-2016 Car of the Year Japan and
the 2016 World Car of the Year, making us very happy
to have so many people recognize the type of vehicle
engineering for which we aim. We also unveiled the
three-row crossover SUV Mazda CX-9, featuring a
newly developed 2.5-liter direct-injection turbo-
charged gasoline engine, SKYACTIV-G 2.5T, which
went on sale in North America in May 2016. We are
strengthening our new-generation product lineup
with the aim of continuous and even greater growth.
In terms of manufacturing, with the goal of establish-
ing a structure for the timely and stable supply of
compact SUVs, the market for which continues to
grow globally, we began production of the Mazda CX-3
in Thailand from October 2015. In addition, we have
commenced mass production of SKYACTIV engines
there as well.
With regard to business results, in addition to the
global launch of new models such as the CX-3 and the
new MX-5, updated versions of the Mazda6 (Japanese
name: Mazda Atenza) and the CX-5 recorded strong
sales, and as a result global sales volume grew 9.8%
from the previous year, to 1,534,000 units. Net sales
rose ¥372.7 billion, to ¥3,406.6 billion, and operating
income grew ¥23.9 billion, to ¥226.8 billion. With
extraordinary losses including the recording of a
reserve for product warranties, net income attribut-
able to owners of the parent declined ¥24.4 billion, to
¥134.4 billion.
We expect uncertain conditions to continue during
the March 2017 fiscal year from changes in the exter-
nal environment, with political and economic factors
in the markets of major countries affecting automo-
tive demand, and from drastic fluctuations in finan-
cial markets, including foreign exchange rates. Never-
theless, we are aiming for continued growth in sales
volume and are forecasting a 1.0% increase in global
sales volume, to 1,550,000 units, from the introduc-
tion of the CX-9 and other new models, and the roll-
out of other updated models, including the updated
Mazda6 and CX-5, which have had strong receptions.
Our financial forecasts are for net sales of ¥3,280.0
billion, with operating income of ¥170.0 billion and
net income attributable to owners of the parent of
¥115.0 billion. With new models including the CX-9 and
the introduction of updated models contributing to
sales volume and raising profitability, as well as cost
reductions for new models through Monotsukuri
Innovation and cost development at overseas plants,
we will reduce controllable costs in areas other than
investments for future growth such as development
expenses. We anticipate a major negative impact
from the yen’s appreciation but will strive to address
this in all areas of development, production, sales,
and finances.
Returns to shareholders
We endeavor to pay a stable dividend with steady
increases, based on a comprehensive assessment of
financial results for the fiscal year, the business envi-
ronment, and our financial position. For the March
Consolidated Results and Forecast
(Fiscal years ended March 31) 2015 2016 2017
Result Increase /
(Decrease) Result Increase /
(Decrease) Forecast Increase / (Decrease)
Global sales volume
(Thousands of units) 1,397 +66 1,534 +137 1,550 +16
Net sales (Billions of yen) 3,033.9 +341.7 3,406.6 +372.7 3,280.0 (126.6)
Operating income (Billions of yen) 202.9 +20.8 226.8 +23.9 170.0 (56.8)
Net income attributable to owners
of the parent (Billions of yen) 158.8 +23.1 134.4 (24.4) 115.0 (19.4)
MAZDA ANNUAL REPORT 2016
3Message from
Management
Review of Operations
Drivers of Value Creation
Foundations Underpinning
Sustainable Growth
Financial Section
Contents