Achieving positive results in all profit categories, while steadily implementing the Structural Reform Plan
In FY March 2013, we steadily implemented the Structural Reform Plan*1 which was announced in February 2012. Specifically, we launched the CX-5 and the Atenza/Mazda6 globally; both of these new models employ the full range of SKYACTIV TECHNOLOGY and Mazda's new design theme, KODO (Soul of Motion). We also accelerated further cost improvements through Monotsukuri Innovation. These efforts significantly contributed to the Company's improved financial results. Our net sales for FY March 2013 amounted to ¥2,205.3 billion, with an operating income of ¥53.9 billion and a net income of ¥34.3 billion. As well, we made steady progress in our efforts to reinforce our production footprint and sales networks, mainly in emerging economies, and to promote global alliances.
Establishing the targets for FY March 2014 by identifying and bringing to forefront the CSR perspectives inherent in the daily work of each employee
Mazda divides its CSR Initiatives into six areas*2. In view of global CSR standards, we recently established new CSR targets in accordance with the seven core subjects of ISO26000. These targets covers comprehensive CSR areas including the environmental protection, for which annual targets had already been established and disclosed in the Mazda Green Plan 2020, the Company's mid-term environmental plan. Each target item is extracted from the business operation plans for FY March 2014, in their respective areas. These target items are also intended to identify and highlight the CSR perspectives inherent in the daily operations of each individual employee. The results of our activities toward these targets will be evaluated in FY March 2014 and beyond, and we will continue to implement the PDCA (plan-do-check-act) cycle in order to intensify our CSR efforts.
Each and every employee supports our corporate activities. We therefore believe that it is of vital importance to heighten employee awareness. In FY March 2013, we held a CSR enlightenment seminar for all staff managers and above at the four major business sites in Japan. In the future we will continue to enhance employee awareness, to ensure that CSR perspectives can be instilled more deeply into the Mazda Group.
Introducing products and technologies that deliver "outstanding environmental and safety performance" without compromising Mazda's trademark "driving pleasure"
As an automobile manufacturer, we believe that it is particularly important for Mazda to contribute to realizing a sustainable society through its vehicle products and technological innovations. In 2007, Mazda announced its long-term vision for technology development, called "Sustainable Zoom-Zoom". In keeping with the vision, we will constantly deliver products that harmonize "driving pleasure" with "outstanding environmental and safety performance" at a high level, so as to garner ardent support of customers around the world.
On the environmental front, we introduced the CX-5 and the Atenza/Mazda6, which are receiving high acclaim. Notably, I am confident that the good reputation earned by the models equipped with a clean diesel engine denotes a wider acceptance of Mazda's proposal that clean diesel is a new alternative in addressing environmental problems. This is exemplified by the fact that the CX-5 won the 2012-2013 Car of the Year in Japan. Continuing to introduce vehicles that incorporate SKYACTIV TECHNOLOGY to global markets, we will increase the ratio of such models, from 31% at the end of March 2013 to 80% by March 31, 2016.
In the realm of safety, Mazda carries out research and development of safety technologies on the basis of the Mazda Proactive Safety philosophy. Typical among them is "i-ACTIVSENSE," a series of Mazda's advanced safety technologies designed to aid the driver in recognizing potential hazards, avoiding collisions and reducing the damage resulting from accidents when they cannot be avoided. The Atenza/Mazda6 is the first model to incorporate the full suite of i-ACTIVSENSE safety technologies.
Striving to successfully and steadily accomplish the Structural Reform Plan, whilst taking heed of the challenges society faces
To address changes in the business environment and ensure future growth, we have striven company-wide to implement the Structural Reform Plan. In the future, we would like to achieve steady success in carrying the Plan through, toward the further development of the entire Mazda Group.
One of measures set forth in Mazda's Structural Reform Plan is to expand the Company's global production footprint, with the aim of increasing the overseas production ratio to 50% by the end of FY March 2016. As part of these efforts, we will commence production in Mexico this fiscal year. On the other hand, we are well aware of the crucial significance of domestic production. We continue to attach importance not only to Mazda's monotsukuri or manufacturing technologies, which we have developed—with generous support from suppliers—at our plants in Hiroshima and Yamaguchi Prefectures, but also to Japan's monotsukuri in a broader sense, including environmental preservation technologies centered on energy conservation, human resource development, high quality maintenance, and social contribution initiatives to local communities. Mazda intends to apply these assets to overseas production sites, as well.
Mazda has taken its own initiative in drastically improving the efficiency of the internal combustion engine. While especially taking climate change and other serious social challenges into account, we will meet our responsibilities as an automobile manufacturer.
Mazda will remain committed to valuing customer voices and providing attractive products that satisfy the needs of our customers, even as they vary across more than 120 countries and regions. The Company also hopes to continue developing together with its stakeholders in each local community.
Consistently revisit the basics while continuing to meet our responsibilities to an ever-changing society
I am resolved to respect the absolute fundamentals of business accomplishment.
I will never forget the fundamentals, including the spirit of respecting our customers, as stipulated in our corporate vision "To create new value, excite and delight our customers through the best automotive products and services," as well as compliance with laws and regulations, and appropriate information disclosure.
I will also listen to the opinions of all those involved in Mazda around the world, the better to fulfill our responsibilities to an ever-changing society. In so doing, I will intensify the concerted efforts of all Mazda Group companies to ensure that Mazda will continue to earn the trust of all its stakeholders.
- *1The Structural Reform Plan is mainly organized with the following four initiatives: 1. Business innovation by SKYACTIV TECHNOLOGY; 2. Accelerate further cost improvements through Monotsukuri Innovation; 3. Reinforce business in emerging countries and establish global production footprints; and 4. Promote global alliances.
- *2The six areas of Mazda's CSR initiatives are: Environmental Protection, Social Contribution, Respect for People, Customer Satisfaction, Compliance and Information Disclosure.