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During the fiscal year ended March 31, 2000, Mazda achieved significant accomplishments and continued to build a foundation for future success. On a consolidated basis, net sales for the year totaled ¥ 2,161.6 billion, up 5.1% from the previous year. Net income was ¥ 26.1 billion-the fourth largest net income since fiscal year 1985. At the same time, it was a disappointing year. The adverse effects of a stronger-than-anticipated yen more than offset cost reductions and improved financial results by domestic dealers and subsidiaries, preventing us from achieving our initially forecasted targets.
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| Major achievements during the year include the following: |
| • | We successfully introduced new models such as Premacy, MPV and Bongo. |
| • | We generated strong operating cash flow and reduced net debt. |
| • | We dramatically improved the profitability of the domestic dealer organization. |
| • | We reorganized subsidiaries and overseas organizations to streamline their operations and make them profitable entities. |
| • | We achieved further progress in optimizing both synergies and resources regarding Mazda and Ford joint projects. |
| • | We made considerable progress in cascading Mazda brand management strategy, the core thrust of our business initiatives, throughout the Mazda Group worldwide, with successful efforts recognized internally and through third party endorsement. |
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We face many challenges. These include the need to reduce our exposure against foreign currency fluctuations, to grow our business domestically and overseas, to improve further the overall performance of our subsidiaries and dealerships and to lower our costs to enhance profitability. We are addressing these issues with a sense of urgency, and we are putting in place the plans and strategies to deal with these challenges. We have a multicultural, multinational management team made from a sound mix of veterans and younger members. We are aggressively executing a brand management strategy and product philosophy. Moreover, we are continuing to implement innovative business concepts and practices to become a company recognized for clearly understanding and meeting the distinct needs and desires of our customers.
We hope this annual report will give you further insight into our strategic direction to become a customer-driven company and to strengthen our position in the global market. Moreover, we will continue to accelerate improvements in all elements of the business to enhance profitability and return on shareholder investment.
We approach the future with confidence in tackling these challenges, guided by a clear vision and a firm sense of direction.
August 2000 |
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