Towards a Global Control System

Mazda has a long-established system of internal controls within the Company and consolidated subsidiaries using measures such as a self-checking program in which individual employees refer to checklists. In June 2007, we established a specialized group within the CSR Promotion Department to put in place internal controls across the Group. Its goal is raising corporate value through the achievement of four targets for internal controls: improvement of effectiveness and efficiency of day-to-day operations; consolidating trust in our financial reporting; observance of laws and regulations governing our business activities; and protection of assets.

This department implements (1) guidance, education, and support for the promotion of an internal control system within the Company and affiliated companies; (2) the planning and operation of the Mazda global hotline; and (3) companywide integration of management and usage of information, including personal information and confidential information. It is responsible primarily for the promotion of an internal control system at a global level.

By FY2007, we had almost completed implementing support for the Financial Products and Exchange Law in Japan through the establishment of an internal control evaluation system, which includes the documentation of important business processes in our financial reporting, and strengthening of the self-check program.

Additionally, in January 2008, with the ultimate objective of creating an appropriate financial reporting process, we established a dedicated department within the Financial Services Division that has as its aims the drafting and promotion of a finance system.