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MAZDA REPORTS FISCAL YEAR 2006 FINANCIAL RESULTS

- Record profits achieved in final year of Mazda Momentum Plan -

Apr 27, 2007

HIROSHIMA, Japan-Mazda Motor Corporation today reported its financial results for fiscal year (FY) 2006 and provided its forecast for FY2007.

FY2006 Consolidated Full Year Highlights:

  • Consolidated sales revenue increases by 11 percent to a record 3,247.5 billion yen
  • Consolidated operating profit up 28 percent to a record 158.5 billion yen
  • Consolidated net income increases 11 percent to a best-ever 73.7 billion yen
  • Six yen dividend per share declared; an increase of 1 yen

FY2007 Projections Highlights:

  • Consolidated sales to increase by 2 percent to 3,320.0 billion yen
  • Operating profit forecast to increase by 1 percent to 160 billion yen
  • Net income expected to rise by 15 percent to 85 billion yen
  • Global retail volume to reach 1.35 million units, a 4 percent increase
  • Mazda to resume interim dividends after a 15-year moratorium

In the final year of the Mazda Momentum plan, Mazda's FY2006 operating profit was a record 158.5 billion yen, exceeding FY2005 results by 28 percent. Consolidated revenue increased by 11 percent year-on-year to an all-time high of 3,247.5 billion yen, the first time it has surpassed the 3 trillion yen level. Net income once again achieved a best-ever record, up 11 percent to 73.7 billion yen, and global retail volume rose by 2 percent year-over-year to reach 1,302,000 units.

For FY2007, Mazda projects its operating profit to be 160.0 billion yen, up 1 percent. The full fiscal year 2007 outlook for net income is 85.0 billion yen, a 15 percent year-on-year increase. As product-driven growth for the company continues, Mazda is projecting a global retail sales increase of 4 percent in FY2007 to 1.35 million units. In addition, Mazda plans to resume interim dividends to shareholders for the first time in 15 years.

Mazda President and CEO Hisakazu Imaki said, "This was the final year of the Mazda Momentum plan and we are very pleased that our business performance in FY2006 once again resulted in all-time record results in all profit levels. FY2007 is the first year for our new Mazda Advancement Plan, and we will be aggressively increasing capital investment and R&D expenditures for product development of our core models and to strengthen our next-generation technologies.

Going forward, we will execute this new mid-term plan with total dedication."

Financial results for FY2006
Global retail volumes were 1,302,000 units in FY2006, an increase of 2 percent over FY2005. This reflects the added sales from the launch of new crossover SUVs in North America and vehicles powered by new diesel engines in Europe. Consolidated revenues in FY2006 were 3,247.5 billion yen, a year-over-year increase of 327.7 billion yen, or an 11 percent increase. Operating profit was up by 35.1 billion yen, a 28 percent increase over the same period last year, to reach 158.5 billion yen. This reflects an improved model mix in North America due to the introduction of the CX-7 and CX-9 models, favorable effects of a weaker yen and net cost reductions which offset the impact of higher raw materials costs.

Ordinary profit was 127.8 billion yen, a rise of 26 percent, or a 26.3 billion yen increase over the figure from the last fiscal year. At 73.7 billion yen, net income was up 7 billion yen from year-ago levels, a climb of 11 percent. However, net income would have increased by 26 percent over the prior year - excluding the one-time impact of an extraordinary gain from the transfer of a substitutional portion of employee pension fund liabilities to the government and impact of asset-impairment losses in FY2005. In addition, cash flow in FY2006 was 21.0 billion yen, consisting of an operating cash flow of 116.4 billion yen, less investments of 95.4 billion yen. Net debt, at 232.2 billion yen, was down 14.6 billion from the end of the prior fiscal year, resulting in a net debt-to-equity ratio of 49 percent in FY2006, a 13 point improvement over the prior year and under the 50 percent target figure.

Financial Projections for FY2007
Mazda projects a global retail volume of 1.35 million units in FY2007, a 4 percent increase over FY2006. With the planned introduction of the all-new Mazda2 (known as Demio in Japan) in FY2007 together with full-year contributions from the CX-7 and CX-9 models, sales increases are forecast in North America, Europe and other global markets as Mazda aims at sustained product-led growth in the future. Consolidated revenue is projected to increase by 2 percent to 3,320.0 billion yen, a rise of 72.5 billion yen over FY2006 levels. With improved volume and model mixes and aggressive forward-looking investment, Mazda projects operating profit to grow by 1 percent, an year-on-year increase of 1.5 billion yen, and to reach 160.0 billion in FY2007. The outlook for ordinary profit is 140.0 billion yen, an increase of 12.2 billion yen, or 10 percent, from prior-year levels. Mazda is forecasting net income to be up by 11.3 billion yen (or 15 percent) to reach 85 billion yen.

 

 

FY2007 Projections Key Data

 

 

 

 

 

  1st Half 2nd Half Full year Y-O-Y Change
(percent)
Global retail volume 670,000 units 680,000 units 1,350,000 units up 4 percent
Revenue 1,580.0 billion yen 1,740.0 billion yen 3,320.0 billion yen up 2 percent
Operating profit 60.0 billion yen 100.0 billion yen 160.0 billion yen up 1 percent
Ordinary profit 50.0 billion yen 90.0 billion yen 140.0 billion yen up10 percent
Net income 25.0 billion yen 60.0 billion yen 85.0 billion yen up 15 percent

 

 

Dollar/Euro Equivalent
FY2006 Financial Results
Unit: millions

 

 

 

 

  Yen US$ Euro
Revenue 3,247,500 28,276.0 22,165.7
Operating profit 158,500 1,380.1 1,081.8
Ordinary profit 127,800 1,112.8 872.3
Net income 73,700 641.7 503.0
Cash flow 21,000 182.8 143.3
Net debt 232,200 2,021.8 1,584.9

Notes:
Financial Results

-Dollar equivalents compiled at 114.85 yen to the dollar (Exchange rate prevailing on March 30, 2007).
-Euro equivalents compiled at 146.51 yen to the Euro (Exchange rate prevailing on March 30, 2007).

 

FY2007 Financial Projections Unit: millions

 

 

 

  Yen US$ Euro
Revenue 3,320,000 28,869.6 21,699.3
Operating profit 160,000 1,391.3 1,045.8
Ordinary profit 140,000 1,217.4 915.0
Net income 85,000 739.1 555.6

Notes:
Financial Results
-Dollar equivalents compiled at 115 yen to the dollar

-Euro equivalents compiled at 153 yen to the Euro

 

 

Disclaimer
The projections for FY2007 and future outlook shown in this press release are based on various uncertainties including conditions of the world economy in the future, automotive industry trends and the risk of exchange rate fluctuations. Note that neither Mazda nor any third party providing information shall be responsible for any damage an individual may suffer due to investment in Mazda based on the information contained in this press release.

Please go to "Investor Relations" at the Mazda Official Website http://www.mazda.com/investors/ for additional financial information.


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