CSR Initiatives

With Shareholders and Investors

Management Conditions and Dividends

Mazda engages in a variety of investor relations initiatives in keeping with its policy of timely and appropriate disclosure of information.

Management Conditions and Dividends for FY Ended March 31, 2014

With regard to the business environment surrounding the Mazda Group, although the outlook for the economies of emerging countries was uncertain, overall the economy continued to make a gradual recovery. The U.S. economy continued its gradual improvement, and signs of recovery were also seen in the European economy. The Japanese economy is on the way to a solid recovery as the result of fiscal and monetary policies implemented by the government and the Bank of Japan, and last-minute demand was seen prior to the recent hike in the consumption tax.
Under these circumstances, while steadily implementing key initiatives of its Structural Reform Plan, the Mazda Group pressed forward with the global expansion of sales of vehicles with SKYACTIV TECHNOLOGY, which is a thoroughly advanced base technology, and strove to improve its earning structure.
In terms of products, the new Axela/Mazda3, the third new product which fully incorporates SKYACTIV TECHNOLOGY and its new "KODO-Soul of Motion" design theme, was launched globally , starting with the North American market. The new Axela/Mazda3 is the first model that incorporates the new generation car connectivity system MAZDA CONNECT, which offers the convenience and enjoyment of new telecommunications technologies, including smartphones, in a way suitable for vehicles. The new Axela/Mazda3 features the "i-ACTIVSENSE", Mazda's advanced safety technologies, which was featured in the Atenza/Mazda6 as well under Mazda Proactive Safety philosophy.
The global engine line-up includes a newly-developed 1.5 liter gasoline engine of SKYACTIV-G in addition to 2.0 and 2.5 liter gasoline engines and a 2.2 liter clean diesel engine. A sedan model featuring a hybrid electric powertrain is offered in Japan. The needs of the customer are becoming more and more diverse, and Mazda is meeting these needs with driving pleasure as well as outstanding environmental and safely performance.
In the production area, the production of the new Mazda3 for the North American market began at the new plant in Mexico in January 2014 as scheduled. The plant will also produce the new Mazda3 for other countries in the Central and South America and Europe. An engine machining plant in Mexico and a new transmission plant in Thailand are being constructed steadily. In Japan, Mazda also plans to enhance production capacity of SKYACTIV engine and transmission.
In the sales area, the CX-5 and the Atenza/Mazda6, excellent sellers globally, have led overall sales. On top of it, the new Axela/Mazda3 is enjoying good sales. This indicates that the new generation models with SKYACTIV TECHNOLOGY are highly evaluated in global markets. Retail volume in Japan, orders for the new Axela far exceeded the target and sales of the Atenza and CX-5 remained strong. Retail volume in North America with increased volume in the U.S. on strong sales of the Mazda6 and CX-5, and record sales in Mexico. In Europe, sales in key countries such as Germany, Russia and the United Kingdom were strong. In China, the locally manufactured CX-5 drove sales. In other markets, although sales remained strong in Australia, they declined in Thailand, where demand was sluggish. As a result, total global retail volume was 1,331 thousand units, up 7.8% year on year.
As for financial performance on a consolidated basis, net sales amounted to 2,692.2 billion yen (an increase of 487 billion yen year on year), owing to increasing sales of SKYACTIV TECHNOLOGY equipped models in global markets. Operating income amounted to 182.1 billion yen (an increase of 128.2 billion yen year over year) owing to improvements in volume, model mix and cost as well as the fluctuation of foreign exchange rate. Ordinary income amounted 140.7 billion yen (an increase of 107.6 billion yen year over year), and net income amounted 135.7 billion yen (an increase of 101.4 billion yen year over year).
The Company's dividend policy is to determine the dividend by taking into account the fiscal year's business results, as well as the business environment and financial situation. For FY ended March 31, 2014, the Company decided to pay one yen per share as the year-end dividend. This was the first resumption of dividend payments in four fiscal years. Mazda will aim to stabilize and improve dividend payments.

Results for FY ended March 31, 2014
(Billion yen)
Full fiscal year
FY March 2014
YOY changes
Net sales 2,692.2 487.0
Operating income 182.1 128.2
Ordinary income 140.7 107.6
Income before tax 97.4 58.3
Net income 135.7 101.4
Operating income ratio 6.8% 4.4pts

The Medium- and Long-Term Outlook and the Structural Reform Plan

Mazda had actively been promoting structural reform by taking advantage of its SKYACTIV TECHNOLOGY since the Company announced the Structural Reform Plan in February 2012. However, in response to the changing external environment, the Company has reviewed its management guidance for FY ending March 31, 2016 as follows: The global sales volume target is 1.52 million vehicles, in keeping with market demand and the sales environment; operating income is estimated at 230 billion yen, assuming exchange rates of 100 yen to the dollar and 135 yen to the euro; operating income ratio is forecast at over 7%. Mazda will also continue to reliably implement the four pillars of the Structural Reform Plan.

Four Initiatives of the Structural Reform Plan, and Future Actions
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