Seven Years of Continuous Revenue Increases, Historically High Profits

In FY2007—the first year of the Mazda Advancement Plan—high R&D costs, capital investment and other fixed expenses in a severe external environment that included rising prices for raw materials were offset by increased unit sales, yen depreciation against almost all other currencies, and cost cutting. Consequently, business results for FY2007 included net sales of ¥3,475.8 billion, operating income of ¥162.1 billion and net income of ¥91.8 billion, for the seventh straight year of higher revenues and profits and new records in all profit levels. We also continued to accelerate product-led growth, achieving global sales of 1,363,000 units—a 5% increase over the preceding fiscal year.

In terms of products, the new Demio (Mazda2) and the new Atenza (Mazda6) were released in major markets and have received high acclaim. We have also augmented our production capabilities in Japan, raising annual production capacity 11%, to 996,000 units. In Nanjing, China, we have begun production at a vehicle assembly plant to follow up on our launch of an engine plant.

Reflecting such business results, we paid a year-end cash dividend of ¥3 per share (¥6 for the year) for FY2007.

Although we expect a harsher business climate, we will advance structural reorganization and ramp up cost reforms as we move forward. Moreover, by bolstering brand value through the introduction of new products, we aim to keep the Company on its growth course toward the realization of the Mazda Advancement Plan.

• Business Plan