To our shareholders and investors,
Under the Mazda Momentum plan (from FY2004 to FY2006), we continued our efforts to build a solid foundation for consistent and steady future growth. With your strong supports, we could achieve two of the plan's targets one year early -operating income of over \ 100.0 billion and a net debt-to-equity ratio of below 100%. However, we deferred our consolidated wholesales target. This decision reflects lower industry demand as well as increasing competition in key markets, and our continuing focus to strengthen the Mazda Brand.
Our objective is, not to become the largest automotive manufacturer, but instead, to be a company that can please customers and gain trust from all stakeholders by continuously providing exciting "Zoom-Zoom" products and services in our unique Mazda way. During Mazda Momentum Period, we have developed our long-term strategy, viewing 10 years from today. Looking ahead, we position the new mid-term plan, the Mazda Advancement Plan", as a period to accelerate business structural reforms centering around "Manufacturing Innovation" and further advance toward a stable and prosperous future. This plan covers 4 years from next fiscal year to FY2010. The objectives of this plan are to further solidify the foundation for continuous long term growth that we built during the Mazda Momentum period. We focus on three main areas to realize our growth: Synergy with Ford, Brand Value and Business Efficiency. During the Mazda Advancement Plan period, the specific objectives we plan to achieve in FY2010 include: Retail sales of at least 1.6 million units globally, achieve operating profits of 200 billion yen, and achieve operating ROS of 6%. For dividend payout ratio, we recognize that we are not at a satisfactory level for our shareholders yet. Our basic policy remains to make stable dividend distributions and we will endeavor to make steady improvements.The first of these has been to increase the dividend per share by ¥1 for fiscal 2006, as we did in the previous fiscal year, to ¥6. We also plan to commence paying interim dividends for the first time in 15 years. Plans call for an interim dividend payment of ¥3 and a year-end dividend payment of ¥3 in fiscal 2007.
We are committed to working towards sustainable future that brings continued happiness and excitement to people in a global society, by developing vehicles that never fail to excite, visually capture the customer's heart and provide a fun driving experience that keeps bringing them back to Mazda. To realize the objective, a whole Mazda Group will do our best working in one team as "One Mazda".
I ask our shareholders and investors for your continuing supports.
Best regards,
Under the Mazda Momentum plan (from FY2004 to FY2006), we continued our efforts to build a solid foundation for consistent and steady future growth. With your strong supports, we could achieve two of the plan's targets one year early -operating income of over \ 100.0 billion and a net debt-to-equity ratio of below 100%. However, we deferred our consolidated wholesales target. This decision reflects lower industry demand as well as increasing competition in key markets, and our continuing focus to strengthen the Mazda Brand.
Our objective is, not to become the largest automotive manufacturer, but instead, to be a company that can please customers and gain trust from all stakeholders by continuously providing exciting "Zoom-Zoom" products and services in our unique Mazda way. During Mazda Momentum Period, we have developed our long-term strategy, viewing 10 years from today. Looking ahead, we position the new mid-term plan, the Mazda Advancement Plan", as a period to accelerate business structural reforms centering around "Manufacturing Innovation" and further advance toward a stable and prosperous future. This plan covers 4 years from next fiscal year to FY2010. The objectives of this plan are to further solidify the foundation for continuous long term growth that we built during the Mazda Momentum period. We focus on three main areas to realize our growth: Synergy with Ford, Brand Value and Business Efficiency. During the Mazda Advancement Plan period, the specific objectives we plan to achieve in FY2010 include: Retail sales of at least 1.6 million units globally, achieve operating profits of 200 billion yen, and achieve operating ROS of 6%. For dividend payout ratio, we recognize that we are not at a satisfactory level for our shareholders yet. Our basic policy remains to make stable dividend distributions and we will endeavor to make steady improvements.The first of these has been to increase the dividend per share by ¥1 for fiscal 2006, as we did in the previous fiscal year, to ¥6. We also plan to commence paying interim dividends for the first time in 15 years. Plans call for an interim dividend payment of ¥3 and a year-end dividend payment of ¥3 in fiscal 2007.
We are committed to working towards sustainable future that brings continued happiness and excitement to people in a global society, by developing vehicles that never fail to excite, visually capture the customer's heart and provide a fun driving experience that keeps bringing them back to Mazda. To realize the objective, a whole Mazda Group will do our best working in one team as "One Mazda".
I ask our shareholders and investors for your continuing supports.
Best regards,
