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We steadily implement Structural Reform Plan to realize sustainable growth while continuing investment for future growth such as establishment of global production footprint and new product introductions

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 the fiscal year March 2014, we achieved steady results in introduction of new products and establishment of production footprint as we pursue Structural Reform Plan toward fiscal year March 2016. The all-new Mazda3, the third new product which fully incorporates SKYACTIV and new design theme gKODOh, has been launched and received high accolades. Production of the all-new Mazda3 for North American market began at the new plant in Mexico in January 2014 as scheduled. The plant will also produce the all-new Mazda3 for other countries in the Central and South America and Europe.

In February 2012, we announced a Structural Reform Plan and have aggressively promoted structural reforms by using the gSKYACTIVh as leverage. In response to changes in business environment surrounding Mazda such as market trend, sales environment and correction of yen appreciation, we have revised our business indices for the fiscal year March 2016. Global sales volume is planned at 1.52 million units. Operating profit is upwardly revised from \150 billion to \230 billion (based on exchange rate assumption of \100 to US dollar and \135 to Euro). Operating return on sales is projected at 7% or more. While we continue investment for future growth such as establishment of global production footprint and investment in new products, we reinforce business foundation aiming at steady volume growth and stable profit structure.

The whole company is now promoting Mazda brand value management. Our aspiration is to become a brand that maximizes customer satisfaction by providing Mazda unique, attractive gfun-to-driveh products and services. The lineup will be expanded with attractive products such as SKYACTIV models and we will push forward with brand value-focused management. For example, we will realize sales at the right price by ensuring customers understand the values of our products, and maintain and improve residual value.

By providing values which exceed expectations at all touch points with customers including products, sales and service, communication and people throughout their car-life, in addition to maintaining and improving product quality, we aim to be the brand that customers can trust and continue choosing.

I ask for the continued support and guidance of all shareholders and investors going forward

June 2014

Mazda Motor Corporation Representative Director President and CEO Masamichi Kogai

Masamichi Kogai
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