Mazda 2016 Annual Report Download - page 7

Message from President and CEO
for these next-generation models will emphasize
environmental performance and safety, including
compliance with increasingly strict environmental and
other regulations in various countries.
In the area of brand and sales, we will strengthen
sales with a full lineup of SKYACTIV-equipped ve-
hicles. We will also roll out and instill our right-price
sales policy globally to sell vehicles without relying on
incentives and increase retention (the ratio of custom-
ers who replace their Mazda vehicle with another
Mazda vehicle) by improving the residual value of
vehicles. Moreover, we will pursue sales frontline
innovation with an emphasis on customer care and
improving customers’ brand experience with the
aim of becoming a brand that creates special bonds
with customers.
In terms of manufacturing, we are accelerating
cost reductions by expanding the scope of Monotsu-
kuri Innovation, which produced significant results
at domestic production sites, to all production sites
around the world. We are also working to maximize
manufacturing efficiency at major production sites
and strengthening the production structure that will
facilitate mutually complementary production
between production sites in Japan and overseas, to
accommodate increased sales of SKYACTIV-equipped
vehicles. Going forward, we will implement initiatives
that will allow us to raise the percentage of crossover
models, sales of which are expected to grow, to 50%
of production volume, and increase global sales
volume to 1.65 million units.
In terms of finances, we will strengthen our finan-
cial base by generating stable profits and cash flow
and increasing equity by increasing brand value
through steady growth in sales volume and qualitative
business growth.
Based on our long-term vision for technology
development, which has a basic policy of providing all
customers who purchase Mazda vehicles with driving
pleasure as well as outstanding environmental and
safety performance, we will contribute to a sustain-
able society through technological innovation in the
areas of the environment and safety.
We will also continue to engage in timely and
appropriate information disclosure and constructive
dialogue with shareholders and investors through
shareholders’ meetings, business presentations, and
quarterly earnings announcements, while at the same
time emphasizing corporate governance as an impor-
tant management issue for continuous growth and
the enhancement of corporate value over the medium-
to-long term.
Going forward, we will make every effort to ensure
that the Mazda Group is a company that has the full
trust of all stakeholders.
Structural reform as a way toward qualitative business growth and improved brand value
Product and R&D• Continuous evolution of new-generation products
• Develop and introduce next-generation technologies and models
Brand and Sales • Drive reforms at sales frontline to ensure penetration of sales strategy
• Improve customers’ ownership experience
Global production • Accelerate cost improvements through global deployment of Monotsukuri Innovation
• Support sales growth by maximizing plant utilization
Strengthen financial
structure
• Establish strong financial structure
• Raise dividend payout ratio
Structural Reform Stage 2
Global sales volume
1.65 million units
Operating income ratio
7
% or more
Equity ratio
45% or more
Dividend payout ratio
20 % or more
Target for March 2019 fiscal year (Foreign exchange rate assumptions: ¥120 / USD, ¥130 / euro)
MAZDA ANNUAL REPORT 2016
5Message from
Management
Review of Operations
Drivers of Value Creation
Foundations Underpinning
Sustainable Growth
Financial Section
Contents