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 2017, under the medium-term business plan Structural Reform Stage 2, we have worked to offer appealing products that provide both driving pleasure and outstanding environmental and safety performance, to achieve qualitative growth in all areas of the business and to further enhance brand value. Global sales volume was up 1.6% from the prior year at 1.559 million units, the highest on record. Consolidated revenue was ¥3 trillion and 214.4 billion, down ¥192.2 billion from the prior year, owing to the strong yen, and operating profit was ¥125.7 billion, down ¥101.1 billion from the prior year. Net income was ¥93.8 billion, down ¥40.6 billion from the prior year.
In FY March 2018, we will enhance competitiveness and achieve volume growth by expanding the SKYACTIV lineup with launch of the new 3-row crossover SUV, Mazda CX-8, in addition to introduction of new CX-5 in overseas markets. In terms of production, we plan to start producing the CX-5 at Hofu Plant and further increase flexibility of crossover production at Hiroshima Plant to meet increasing demand for crossover vehicles. We will make investments for the development and production of next-generation technologies and products as planned to support sustainable growth.
Steady progress has been made on the key initiatives of Structural Reform Stage 2 to achieve qualitative growth in all areas of the business. The targets for FY March 2019, the plan’s final year, based on exchange rates of ¥108 to the US dollar and ¥118 to Euro, include global sales volume of 1.65 million units; operating ROS of 5% or more; equity ratio of 45% or more; and dividend payout ratio of 20% or more. While continuing to steadily implement the key initiatives in all areas, we aim to steadily improve shareholder returns.
Trying to solve social challenges and improve corporate value at the same time, we will put further efforts to develop technologies which contribute to lower CO2 emissions by improving fuel efficiency and reductions of car accidents through introductions of products with outstanding environmental and safety performance.
We will further improve internal combustion engines, and promote development of electric devices and safety technologies to meet global environmental regulations and to realize accident-free automotive society. We are making good progress with the development of a model featuring next-generation technologies scheduled for introduction from FY March 2019.
We will also continue to engage in timely and appropriate information disclosure and constructive dialogue with shareholders, while at the same time emphasizing corporate governance as an important management issue for continuous growth and the enhancement of corporate value over the medium-to-long term.
I ask for the continued support of our shareholders and investors going forward.
Mazda Motor Corporation
President and CEO