I would like to extend my gratitude to shareholders and other investors, and all of the Mazda Group's stakeholders including customers, suppliers, and local communities, for your continued support and understanding.
In FY March 2015, despite the fluctuations in the price of crude oil and instability in foreign exchange markets, we achieved stable growth by pushing ahead with structural reform, leveraging SKYACTIV Technology, and striving to improve our brand value by offering appealing, uniquely Mazda products and service.
In FY March 2016, we continue to focus on the steady implementation of the key initiatives of “Structural Reform Plan” to further improve our brand value. The new Demio/Mazda2 and updated CX-5 and Atenza/Mazda6 will make their first full-year contributions to sales. In addition, with global launches of new CX-3 and new MX-5 and launch of new CX-9 at end of fiscal year, we aim at volume growth and SKYACTIV model mix of 85% or higher. To respond to the strong sales demand for SKYACTIV models, we will increase our production volume in Mexico to 230,000 units. We also plan to start production and distribution of a compact car for Toyota at our Mexico plant, and an open-top two-seater sports car for Fiat Chrysler Automobiles at our Hiroshima plant in Japan.
We have announced our new medium-term business plan “Structural Reform Stage 2” which covers the period from FY March 2017 to FY March 2019. While we have steadily implemented the key initiatives of the “Structural Reform Plan” that was announced in February 2012, there is still room within individual projects to further improve. In “Structural Reform Stage 2”, we first respond to changes in business environment such as industry demand trend by market and segment, market trend such as foreign exchange rates and oil price, and business environment such as environmental regulations. While aiming at steady volume growth, we do not only pursue expansion of business scale, but aim at our brand value improvement through qualitative growth in each business area of product, sales, production and finance with a focus on further improving the key initiatives. Financial targets (based on exchange rate assumptions of ¥120 to US dollar and ¥130 to euro) for FY March 2019, which is the final year of the medium-term plan, includes global sales volume of 1.65 million units, operating ROS of 7% or more, equity ratio of 45% or more, and a dividend payout ratio of 20% or more. In line with strengthening of financial structure, we aim to steadily improve shareholder returns.
As automobile manufacturers, we consider it important to contribute to a sustainable society with the products we provide, and through technological innovation. The entire Mazda Group is making every effort to meet our responsibility toward a constantly changing society, and to be a company that is trusted by shareholders, investors, and all stakeholders.
I ask for the continued support of our shareholders and investors going forward.
Mazda Motor Corporation
President and CEO