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 2016, amid many uncertainties such as the economic downturn in emerging countries and unstable foreign exchange rates, we achieved steady growth, by pushing ahead with structural reform leveraging the SKYACTIV Technology and striving to enhance Brand Value by offering appealing, uniquely Mazda products and service. Global sales volume was up 9.8% from the prior year at 1.534 million units, the highest on record. Consolidated revenue was ¥3 trillion and 406.6 billion, up ¥372.7 billion from the prior year and operating profit was ¥226.8 billion, up ¥23.9 billion from the prior year. Net income was ¥134.4 billion, down ¥24.4 billion from the prior year, mainly due to the reserve for product warranties in extraordinary losses.
In FY March 2017, global sales are projected to increase 1.0% from the prior year to 1.55 million units. We aim for continuous volume growth with the introduction of new models such as the CX-9 and updated models like Mazda6/Atenza and CX-5, which have proved very popular. We forecast consolidated revenue of ¥3 trillion and 280 billion, operating profit of ¥170 billion, and net income of ¥115 billion. Volume and mix is expected to improve as we roll-out new products such as new CX-9 and updated models. We expect cost improvements of new products by Monotsukuri Innovation and cost development in overseas plants. We will reduce controllable costs except for R&D costs and other investments for future growth. Although we expect significant negative impact from the stronger yen, we continue efforts in all areas including R&D, Production, Sales and Finance.
The Structural Reform Plan made significant progress toward achieving a stable profit structure. However, I believe that there is room for further improvement. In Structural Reform Stage 2, we aim to achieve qualitative business growth in the areas of Monotsukuri, sales and financial structure to enhance Brand Value for the sustainable growth in the future. The targets for FY March 2019, the plan’s final year, based on exchange rates of ¥120 to the US dollar and ¥130 to Euro, include global sales volume of 1.65 million units; operating ROS of 7% or more; equity ratio of 45% or more; and dividend payout ratio of 20% or more. While reinforcing our financial base, we aim to steadily improve shareholder returns.
While making every effort to meet our social responsibility envisioning cars existing sustainably with the earth and society, we will further enhance our corporate governance as one of our most important management issues for sustainable growth and enhancement of corporate value in the medium and long-term.
I ask for the continued support of our shareholders and investors going forward.
Mazda Motor Corporation
President and CEO