mazda motor corporation 1. consolidated financial ... · consolidated financial results for the...

Consolidated Financial ResultsFor the Fiscal Year Ended March 31, 2018

Prepared in Conformity with Generally Accepted Accounting Principles in Japan

English Translation from the Original Japanese-Language Document

April 27, 2018

Company Name : Mazda Motor Corporation (Tokyo Stock Exchange / Code No. 7261)

URL : http://www.mazda.com/Representative Person : Masamichi Kogai, Representative Director and PresidentContact Person : Masahiro Takeda, General Manager, Accounting Department, Financial Services Division

Phone 082-282-1111General Meeting of the Shareholders : Scheduled for June 26, 2018Payment of Dividends : Scheduled for June 27, 2018Filing of Yuka Shoken Hokokusho ,

annual securities report : Scheduled for June 27, 2018Supplementary Material : YesBriefing Session : Yes (Intended for securities analysts, institutional investors and media)

(In Japanese yen rounded to millions, except amounts per share)

1. Consolidated Financial Highlights (April 1, 2017 through March 31, 2018)

(1) Consolidated Financial Results(Percentage indicates change from the previous fiscal year)

Net Sales Operating Income Ordinary Income

millions of yen % millions of yen % millions of yen % millions of yen %

FY2018

FY2017

Note: Comprehensive income FY2018 millions of yen ( %)

FY2017 millions of yen ( %)

Net Income Net Income Ordinary Income Operating IncomePer Share to Total Assets to Sales

yen yen % % %

FY2018

FY2017

Reference: Equity in net income of affiliates (for the fiscal years ended March 31) FY2018 millions of yen

FY2017 millions of yen

(2) Consolidated Financial Position

millions of yen millions of yen % yen

As of Mar. 31, 2018

As of Mar. 31, 2017



(3) Consolidated Cash FlowsCash Flows from Cash Flows from Cash Flows from Ending Cash &

Operating Activities Investing Activities Financing Activities Cash Equivalentsmillions of yen millions of yen millions of yen millions of yen

FY2018

FY2017

2. Dividends

yen yen yen yen yen millions of yen % %

FY2017

FY2018

FY2019 (Forecast)

3. Consolidated Financial Forecast (April 1, 2018 through March 31, 2019)(Percentage indicates change from the previous fiscal year)

FY2019 millions of yen % millions of yen % millions of yen % millions of yen % yen

Full Year (28.6)

2.135.00

35.00

-

-

-

1.9

130,000

Operating Income

1,192,925

604,854

526,864

Ratio of Dividends

to Net Assets

(Consolidated)

(159,989)

(63,751)

15.00

15.00

127.04

20,924

21,562

22.3

19.1

27.6

80,000

-

15.00

5.5

4.2

3.9

182.90

Total Amount of

Annual Dividends

Dividends per Share

1st.Qtr.

1,039,421

161,097

43.7

41.2

Dividends Payout Ratio

(Consolidated)

Reference: Net assets excluding non-controlling interests and stock acquisition rights

(as of March 31)

-

1,219,470

1,738.70

30,461

(149,898)

Net Sales Ordinary Income

3,474,024

3,214,363 (5.6)

156.86

20.00

20.00

-

156.87

Total Assets Net Assets

172,1338.1 146,421

139,512

Return on Equity

32,366

(37.6)(44.6)

182.93

(24.5)3,550,000

125,687

3rd.Qtr. Year-End

35.00

20.00

105,000 (28.3)2.2

6.6

2,728,087

2,524,552

Net Assets per Share

1,064,038

10.0

9.4

1,894.29

30,880

Net Income Attributable

to Owners of the Parent

126,500

108,279

Per Share (Diluted)

19.5

93,780 (30.2)

16.5

16.8

112,05723.4

Equity Ratio

Net Income Attributable

to Owners of the Parent

207,795

Net Income

Per Share

8.2

2nd.Qtr. Full Year

*Notes

Newly added subsidiaries: None Excluded subsidiaries: None

(2) Changes in accounting policies / Changes in accounting estimates / Restatement:

1) Changes in accounting policies with accompanying revision of accounting standards None

2) Voluntary changes in accounting policies except 1) Yes

3) Changes in accounting estimates None

4) Restatement None

(3) Number of outstanding shares (Common stock)

1) Outstanding shares at period-end (including treasury stock) As of March 31, 2018 shares

As of March 31, 2017 shares

2) Treasury stock at period-end As of March 31, 2018 shares

As of March 31, 2017 shares

3) Average number of outstanding shares during the period Year ended March 31, 2018 shares

Year ended March 31, 2017 shares

(Reference)

Unconsolidated Financial Highlights (April 1, 2017 through March 31, 2018)

(1) Unconsolidated Financial Results

(Percentage indicates change from the previous fiscal year)

Net Sales Operating Income Ordinary Income Net Income

millions of yen % millions of yen % millions of yen % millions of yen %

FY2018

FY2017

Net Income Net Income

Per Share Per Share (Diluted)yen yen

FY2018

FY2017

(2) Unconsolidated Financial Position

Net Assets

Per Sharemillions of yen millions of yen % yen

As of Mar. 31, 2018

As of Mar. 31, 2017



This document is out of the scope of audit by certified public accountants or accounting auditor.

Cautionary Statements with Respect to Forward-Looking Statements and Other Notes

The financial forecast and other descriptions of the future presented in this document are an outlook based on our judgments and projections.

The judgments and projections are based on information presently available. As such, the financial forecast and future descriptions are subject to

uncertainties and risks, and are not contemplated to ensure the fulfillment thereof.

Accordingly, the actual financial performance may vary significantly due to various factors.

For detail such as precondition of the financial forecast, please refer to "1.Overview of Financial Results, etc. - (4) Financial Forecast" on page 4

of the attachment.

94.70

Total Assets

(1) Changes in Significant Subsidiaries during the period (changes in specified subsidiaries resulting in the change in scope

of consolidation):

Note: Please refer to "3.Consolidated Financial Statements and Major Footnotes (5)Footnotes to the Consolidated Financial statements" on page 15 of

the attachment.

31.1 101,029 40.2

(57.1)

94.71

50.1

1,882,008 922,491 49.0

Net Assets

1,643.86

(66.5) 63,518

6.2 59,904

1,035,224Reference: Net Assets excluding stock acquisition rights (as of

March 31) 922,400

Equity Ratio

2,064,568 1,035,407

56,618 (43.7)

2,635,884 59.1

1,542.93

129.55 129.53

2,481,384 (4.8) 45,684

631,803,979

599,875,479

2,057,633

2,059,416

612,554,125

79,359

597,816,793

Attachment

Table of Contents

1. Overview of Financial Results, etc. …………………………………………………………………..………………P. 2

(1) Overview of Financial Results……………………………………………………………………………………P. 2

(2) Overview of Financial Position……………………………………………………………………………………P. 3

(3) Overview of Cash Flow…………………………………………………………………………………………P. 3

(4) Financial Forecast……………………………………………………………………………………………………P. 4

(5) Issues to be Addressed……………………………………………………………………………………P. 5

(6) Basic Dividend Policy, Dividends for March 2018 and March 2019 Fiscal Years…………………………………………………………………………………………………..P. 6

2. Basic Rationale to the Selection of Accounting Standards……………………………………………………P. 6

3. Consolidated Financial Statements and Major Footnotes……………………………………………………………………………….P. 7

(1) Consolidated Balance Sheets………………………………………………………………………………….P. 7

(2) Consolidated Statements of Operations and Comprehensive Income……………………………………..P. 9

(3) Consolidated Statements of Changes in Net Assets……………………………………………………………………………P. 11

(4) Consolidated Statements of Cash Flows………………………………………………………………………P. 13

(5) Footnotes to the Consolidated Financial Statements……………………………………………………………P. 15

Note on the Assumptions as Going Concern…………………..…………………..…………………..…………………..…………………..P. 15

Changes in Accounting Policies…………………..…………………..……………………………………P. 15

Segment Information………………………………………………………………………………………..P. 16

Information on Amounts Per Share of Common Stock…………………………………………………….P. 18

Significant Subsequent Events…………………………………………………………………………….P. 18

4. Unconsolidated Financial Statements and Major Footnotes………………………………………………………………………………..P. 19

(1) Unconsolidated Balance Sheets………………………………………………………………………………..P. 19

(2) Unconsolidated Statements of Operations…………………………………………………………………….P. 21

(3) Unconsolidated Statements of Changes in Net Assets……………………………………………………………………………P. 22

(4) Footnotes to the Unconsolidated Financial Statements………………………………………………………..P. 24

Note on the Assumptions as Going Concern…………………………………………………………………………………………………..P. 24

(References)

Financial Summary (Consolidated) For the Fiscal Year Ended March 2018

Financial Summary (Unconsolidated) For the Fiscal Year Ended March 2018

― 1 ―

1. Overview of Financial Results, etc.

(1) Overview of Financial Results

With regard to the business environment surrounding the Mazda Group for the fiscal year ended March 31,

2018, with the global economic recovery there was a moderate improvement overall. Against a background of

good employment and income environments, the U.S. economy has steadily improved. And as a result of the

growth in exports with the recovery in the overseas economy, the economy in Europe is also doing well. The

economies of developing countries remain strong generally, with China’s economy continuing to experience

stable growth. In Japan, as the result of increased consumer spending and higher corporate earnings, the

economy made a modest recovery.

Amid these circumstances, under the medium-term business plan Structural Reform Stage 2, the Mazda Group

has 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.

In this consolidated fiscal year, the company launched its new Mazda CX-8 in the Japanese market. A

crossover SUV with three rows of seating, the CX-8 offers a new people-moving option. Also, in order to

respond quickly to the growing demand for SUVs globally, the company has created a flexible production

system, starting production of the new Mazda CX-5 crossover at its Hofu Plant. Meanwhile, the company has

expanded its advanced safety technologies, and in Japan all of the company’s six major models, from the compact

car to the three-row crossover SUV, qualify for the Safety Support Car S - Wide rating under the public awareness

campaign being run by Japan's Ministry of Economy, Trade and Industry and Ministry of Land Infrastructure,

Transport and Tourism. (This sub-category of the Safety Support Car S rating is for vehicles featuring technologies

that suppress acceleration when the accelerator is pressed instead of the brake and is recommended for elderly drivers

in particular.)

In order to further strengthen the company’s ongoing partnership with Toyota Motor Corporation, in August

the two companies signed an agreement to enter a business and capital alliance. A joint venture production

company was established in the U.S. in March, and preparations have begun to start operations in 2021.

With a boost from global sales of the all-new CX-5 and continued strong sales in China and Thailand, global

sales volume in the consolidated accounting period was up 4.6% year on year and set a new record at 1,631

thousand units.

Sales volume by market is as shown below.

<Japan>

In Japan, sales were up 3.8% year on year at 210 thousand units as the result of contributions from the new

CX-8, which has continued to sell more than the targeted volume since its launch in December, and from the

updated CX-5, whose sales volume has far exceeded that of the previous fiscal year.

<North America>

Despite a decline in demand for sedans and stiffer competition in the sedan market, brisk sales of the all-new

CX-5 and other crossovers resulted in sales of 304 thousand units, in the U.S., up 0.7% from the previous fiscal

year. Sales were also up in Canada and Mexico, leading to overall sales volume in North America of 435

thousand units, up 1.5% year on year.

<Europe>

Sales were strong in Germany, a major market, and were up over the previous fiscal year in Russia, thus

boosting overall European sales to 269 thousand units, up 2.6% year on year. Sales of the all-new CX-5, which

have been strong throughout Europe since its launch, were up, contributing to the sales increase.

― 2 ―

<China>

In addition to continued strong sales of the Mazda3, sales of crossovers, including the CX-4 and the all-new

CX-5 were also brisk, resulting in an increase in sales of 10.5% year on year to a full-year record high of 322

thousand units.

<Other markets>

On the whole, sales in other markets were up 5.3% year on year at 394 thousand units. In the important

Australian market, sales were down 2.2% at 116 thousand units, but the all-new CX-5 and crossover vehicles

continue to sell well. Among ASEAN markets, sales in Thailand far exceeded sales for the previous fiscal year.

In other regions, New Zealand and Chile set new sales records.

As for financial performance on a consolidated basis, net sales were ¥3,474.0 billion, up ¥259.7 billion or

8.1% from the previous fiscal year, owing to the increase in sales volume and impact of yen’s depreciation, etc.

While wholesales were down and marketing expense increased mainly in the U.S., operating income was

¥146.4 billion, up ¥20.7 billion or 16.5% over the previous fiscal year, owing to the impact of yen’s

depreciation and cost improvements. Ordinary income was ¥172.1 billion, up ¥32.6 billion or 23.4% from the

previous fiscal year with the posting of a ¥32.4 billion gain from equity in net income of affiliated companies

as a result of contributions from Chinese affiliates, where business was good. Net income attributable to

owners of the parent was ¥112.1 billion, up ¥18.3 billion or 19.5% from the previous fiscal year.

Financial results by segment are as shown below.

In Japan, net sales amounted to ¥2,854.0 billion, an increase of ¥176.0 billion or 6.6% over the previous

fiscal year and operating income by segment (hereinafter referred to as “operating income”) amounted to ¥81.6

billion, an increase of ¥15.7 billion or 23.8%. In North America, net sales amounted to ¥1,358.4 billion, an increase

of ¥39.7 billion or 3.0%, and operating income amounted to ¥27.0 billion, an increase of ¥0.3 billion or 1.1%. In

Europe, net sales amounted to ¥712.9 billion, an increase of ¥108.1 billion or 17.9%, and operating income

amounted to ¥8.7 billion, an increase of ¥3.3 billion or 61.7%. In other areas, net sales amounted to ¥678.0 billion,

an increase of ¥88.9 billion or 15.1%, and operating income amounted to ¥25.4 billion, an increase of ¥5.2 billion

or 25.9%.

(2) Overview of Financial Position

As of March 31, 2018, total assets amounted to ¥2,728.1 billion, an increase of ¥203.5 billion from the end of the

previous fiscal year. Total liabilities amounted to ¥1,508.6 billion, an increase of ¥48.1 billion from the end of the

previous fiscal year. Interest-bearing debt amounted to ¥497.9 billion, an increase of ¥6.5 billion from the end of

previous fiscal year.

Net Assets amounted to ¥1,219.5 billion, an increase of ¥155.4 billion from the end of the previous fiscal year,

with the recording of ¥112.1 billion of net income attributable to owners of the parent as well as the issuance of new

shares by way of third-party allotment to Toyota Motor Corporation. Equity ratio increased 2.5 percentage points

from the end of the previous fiscal year, to 43.7% (Percentage after consideration of the equity credit attributes of the

subordinated loan was 45.0%).

(3) Overview of Cash FlowCash and cash equivalent as of March 31, 2018 amounted to ¥604.9 billion, an increase of ¥78.0 billion from

the end of the previous fiscal year.

Net cash provided by operating activities was ¥207.8 billion, reflecting income before income taxes of

¥157.5 billion, etc. (For the previous fiscal year, net cash provided by operating activities was ¥161.1 billion.)

Net cash used in investing activities was ¥160.0 billion, mainly reflecting capital expenditure for the

― 3 ―

acquisition of property, plant and equipment of ¥87.1 billion and purchase of stock in accordance with business

and capital alliance with Toyota Motor Corporation. (For the previous fiscal year, net cash used in investing

activities was ¥63.8 billion.) As a result, consolidated free cash flow (net of operating and investing activities)

was positive ¥47.8 billion. (For the previous fiscal year, consolidated free cash flow was positive ¥97.3 billion.)

Net cash provided by financing activities was ¥30.5 billion, mainly reflecting dividends payable of ¥20.9

billion, issuance of new shares by way of third-party allotment, and issuance of bonds, etc. (For the previous fiscal

year, net cash used in financing activities was ¥149.9 billion.)

(4) Financial ForecastWhile a moderate improvement in the economy globally is expected, with changes in countries’ economic

and fiscal policies, fluctuations in exchange rates, and the trend in sales in the U.S., a major market, the

outlook for the Mazda group’s business environment is uncertain. In the fiscal year ending March 2019, the

final year of the medium-term business plan Structural Reform Stage 2, the company will endeavor to deliver

products that provide both driving pleasure, the value the Mazda brand offers, and outstanding environmental

and safety performance and to enhance its brand value with qualitative growth of the business.

The outlook for the fiscal year ending March 31, 2019 is as follows.

Consolidated Financial Forecast (April 1, 2018 through March 31, 2019)

Full Year vs. Prior Year

Net Sales 3,550 billion yen 2.2 %

Operating Income 105 billion yen (28.3) %

Ordinary Income 130 billion yen (24.5) %

Net Income Attributableto Owners of the parent

80 billion yen (28.6) %

Exchange rate

USD

EUR

107

130

Yen

Yen

(4)

0

Yen

Yen

Global Retail Volume Forecast (April 1, 2018 through March 31, 2019)

Full Year vs. Prior Year

Japan 215 thousand units 2.1 %

North America 457 thousand units 5.1 %

Europe 265 thousand units (1.4) %

China 322 thousand units 0.0 %

Other 403 thousand units 2.2 %

Total 1,662 thousand units 1.9 %

Note: The forecast stated above is based on management’s judgment and views in light of information presently available. By nature,

such forecasts are subject to risks and uncertainties, and are not contemplated to ensure the fulfillment thereof. Therefore, we advise

against making an investment decision by solely relying on this forecast. Variables that could affect the actual financial results include,

but are not limited to, the economic environments surrounding our business areas and fluctuations in yen-to-dollar and other exchange

rates.

― 4 ―

(5) Issues to be Addressed

Last year of Structural Reform Stage 2

As for business targets for the fiscal year ending March 2019, the last year of Structural Reform Stage 2, the

company expects to meet its target of global sales volume of 1,650 thousand units. Although equity ratio will be

slightly below the target, it is expected to steadily improve.

On the other hand, as for consolidated operating return on sales, it is expected to be 3.0%, below the target of 5%

or more, due to the unachieved volume and profit targets particularly in the U.S., as well as the costs related to the

environmental regulations and the sales network reform in the U.S.

March 2019 Financial Targets

Announced in April 2017 Revised Forecast

・ Global sales volume： 1,650 thousand units 1,662 thousand units

・ Consolidated operating return on sales： 5% or more 3.0%

・ Equity ratio： 45% or more 44%

・ Dividend payout ratio： 20% or more 28%

In the next fiscal year ending March 2019, in order to support sales enhancement and improvement in its

profitability, the Mazda group will undertake various initiatives, including introducing the updated models and

next-generation models, and launching the new CX-8 to overseas markets such as Australia and China. In terms of

production, the company will start two-shift operation at Hofu Plant No.2 to increase production flexibility for

crossover vehicles.

Direction of future framework

The company is preparing the next medium-term business plan based on Structural Reform Stage 2.

Prior to the announcement of its next medium-term business plan, as a basic direction of future framework for

sustainable growth, we summarize the “Direction of future framework” as follows.

The Mazda group regards the next three years as a time to secure a firm foothold for solid growth from the fiscal

year ending March 2022. The company will work to enhance product competitiveness through the development and

introduction of next-generation products and new technologies and accelerate the sales network reform, particularly

in the U.S., while maintaining the stable growth of 50 thousand units per year.

In addition, the company will promote the alliance with Toyota Motor Corporation, etc. and aim to establish a

production system with an annual global capacity of 2,000 thousand units in the fiscal year ending March 31, 2024,

with the start-up of the new factory in the U.S.

In terms of products, by dividing next-generation products into small and large architectures, the company will

optimize the product strategies in terms of customer needs, segment characteristics, profit and costs. Under the new

product strategy, the company will aim to realize the strengthening of the business in the U.S. market, enhancement

of lineup of crossover vehicles globally and improvement of net revenue by strengthening the value-added

products.

At the same time, the company will promote the strengthening of the sales foundation globally. In the U.S. market,

targeting annual sales of 400 thousands units by 2021, the company will work to improve the repurchase rate and

reinforce the sales volume at each store by moving ahead with upgrade in marketing strategy so that they are better

― 5 ―

suited to the characteristics of the market, and through the increase in the number of new-generation branded

stores. In the next four years, in order to reinforce the sales network, the company will invest approximately ¥40

billion for the realignment of the sales network.

It is expected that investment will be boosted by a total of ¥250 billion over four years for our future growth,,

including investment in its plant in the U.S. and in next-generation products, compared to the company’s usual

investment. Although a high level of investment is projected, the company will generate operating cash flow and

promote the investment for growth by maximizing production efficiency and making cost improvements.

The Mazda Group will aim for achieving both sustainable growth and shareholder returns by increasing the sales

volume in major markets and improving the profitability, while investing for future growth.

We will announce its next medium-term business plan as soon as the details are decided.

Note: Business indicators and other descriptions of the future are based on certain assumptions judged by Mazda

Group as of March 31, 2018. Such description may differ from the actual results and the achievement of such

description is not guaranteed in any way.

(6) Basic Dividend Policy, Dividends for March 2018 and March 2019 Fiscal Years

Mazda’s policy regarding the stock dividend is to determine the amount of dividend payments, taking into

account current fiscal year’s financial results, business environment, and financial condition, etc. And Mazda is

striving for realization of a stable shareholder returns and its future steady increase.

With regard to the dividend for the fiscal year ended March 31, 2018, we plan to declare ¥35 per share (comprised

of an interim dividend of ¥15 and a year-end dividend of ¥20). We intend to use internal reserves to address changes

taking place in the automotive industry, as well as for research and development and capital investment for future

growth.

For the next fiscal year ending March 31, 2019, our current forecast for dividends is ¥35 per share (comprised of

an interim dividend of ¥15 and a year-end dividend of ¥20).

2. Basic Rationale for the Selection of Accounting Standards

We are planning to apply International Financial Reporting Standards (IFRS) voluntarily in the future, in order to

enhance the international comparability of its financial information, quality of Group management and corporate

governance. We will consider its concrete timing of IFRS application, observing the trend of the adoption among

Japanese companies as well as the domestic and overseas economic situations, etc.

― 6 ―

3. Consolidated Financial Statements and Major Footnotes

(1) Consolidated Balance Sheets

(Millions of Yen)

As of

ASSETS

Current Assets:

398,101 395,863

215,788 221,532

Securities 128,900 219,300

Inventories 376,951 399,787

Deferred tax assets 109,398 86,081

Other 114,051 125,956

Allowance for doubtful receivables (818) (1,028)

1,342,371 1,447,491

Non-current Assets:

Property, plant and equipment:

184,607 196,806

259,008 268,861

Tools, furniture and fixtures (net) 59,428 46,830

Land 409,894 406,117

Leased assets (net) 5,254 5,752

Construction in progress 41,134 47,056

959,325 971,422

31,063 33,317

2,179 2,545

33,242 35,862

Investments and other assets:

147,438 210,605

Long-term loans receivable 3,599 1,433

Asset for retirement benefits 3,629 3,798


22,322 28,914

(2,865) (670)

189,614 273,312

1,182,181 1,280,596

Total Assets 2,524,552 2,728,087

FY2017

March 31, 2017

FY2018

March 31, 2018

Total non-current assets

Other

Total investments and other assets

Buildings and structures (net)

Total intangible assets

Allowance for doubtful receivables

Total property, plant and equipment

Intangible assets:

Investment securities

Cash and deposits

Trade notes and accounts receivable

Total current assets

Software

Machinery, equipment and vehicles (net)

Other

― 7 ―

(Millions of Yen)

As of

LIABILITIES

Current Liabilities:

Trade notes and accounts payable 388,880 417,589

Short-term loans payable 124,454 101,844

Long-term loans payable due within one year 89,997 74,121

Lease obligations 2,125 2,420

Income taxes payable 13,450 15,567

Other accounts payable 30,659 35,986

Accrued expenses 189,249 203,396

Reserve for warranty expenses 123,455 104,435

Other 33,760 40,908

Total current liabilities 996,029 996,266

Non-current liabilities:

Bonds 20,000 50,000

Long-term loans payable 251,248 265,653


Deferred tax liability related to land revaluation 64,715 64,553

Reserve for loss on business of subsidiaries and affiliates 529 821

Reserve for environmental measures 677 529

Liability for retirement benefits 72,888 67,287

Other 50,818 59,653

Total non-current liabilities 464,485 512,351

Total Liabilities 1,460,514 1,508,617

NET ASSETS

Capital and Retained Earnings:

Common stock 258,957 283,957

Capital surplus 239,909 264,910

Retained earnings 445,353 536,856

Treasury stock (2,231) (2,230)

Total capital and retained earnings 941,988 1,083,493

Accumulated Other Comprehensive Income/(Loss):

Net unrealized gain/(loss) on available-for-sale securities 3,913 8,786

Deferred gains/(losses) on hedges 1,188 305

Land revaluation 145,944 145,574

Foreign currency translation adjustment (33,812) (28,576)

Accumulated adjustments for retirement benefits (19,800) (16,657)

Total accumulated other comprehensive income/(loss) 97,433 109,432

Stock Acquisition Rights 91 183

Non-controlling Interests 24,526 26,362

Total Net Assets 1,064,038 1,219,470

Total Liabilities and Net Assets 2,524,552 2,728,087

FY2017

March 31, 2017

FY2018

March 31, 2018

― 8 ―

(2) Consolidated Statements of Operations and Comprehensive Income

Consolidated Statements of Operations(Millions of Yen)

For the years ended

Net sales 3,214,363 3,474,024

Cost of sales 2,448,184 2,653,600

Gross profit 766,179 820,424

640,492 674,003

Operating income 125,687 146,421

3,099 3,681

441 1,395

Rental income 1,821 1,784

Equity in net income of affiliated companies 30,880 32,366

Other 3,413 3,648

Total 39,654 42,874

Interest expense 9,383 7,442

Loss on transfer of receivables 1,501 1,807

Foreign exchange loss 7,763 3,624

Other 7,182 4,289

Total 25,829 17,162

Ordinary income 139,512 172,133

256 904

Gain on sale of investment securities 44 515

394 -

Compensation for the exercise of eminent domain 17 -

Other - 74

Total 711 1,493

Extraordinary losses

5,172 5,679

1,120 2,425

Reserve for loss on business of subsidiaries and affiliates - 292

Litigation settlement - 7,539

Business structure improvement expenses 5,515 -

Other 3 207

Total 11,810 16,142

Income before income taxes 128,413 157,484

Current 30,316 35,842

Deferred 351 7,074

Total 30,667 42,916

Net income 97,746 114,568

Net income attributable to Non-controlling interests 3,966 2,511

Net income attributable to owners of the parent 93,780 112,057

Income taxes

Interest income

Dividend income

Non-operating expenses

FY2018

March 31, 2018

Extraordinary income

Gain on sales of property, plant and equipment

FY2017

Impairment loss

Loss on sales and retirement of property, plant and equipment

March 31, 2017

Selling, general and administrative expenses

Non-operating income

Gain on reversal of reserve for loss on business of

subsidiaries and affiliates

― 9 ―

Consolidated Statements of Comprehensive Income(Millions of Yen)

For the years ended

Net income 97,746 114,568

Other comprehensive income/(loss)

Net unrealized gain/(loss) on available-for-sale securities 184 4,870

Deferred gains/(losses) on hedges 1,652 (950)

Foreign currency translation adjustment 7,874 (248)

Adjustments for retirement benefits 5,762 3,053

(4,939) 5,207

Total 10,533 11,932

Comprehensive income/(loss) 108,279 126,500

Comprehensive income/(loss) attributable to:

Owners of the parent 104,583 124,426

Non-controlling interests 3,696 2,074

FY2017

March 31, 2017

FY2018

March 31, 2018

Share of other comprehensive income/(loss) of affiliates

accounted for using equity method

― 10 ―

(3) Consolidated Statements of Changes in Net Assets

(For the Year Ended March 31, 2017)

Common stock Capital surplus Retained earnings Treasury stock Total

Mil.yen Mil.yen Mil.yen Mil.yen Mil.yen Mil.yen Mil.yen

Balance at April 1, 2016

Changes during the period:

Issuance of new common stock

Dividends paid

Purchase of treasury stock

Sale of treasury stock

Change of scope of consolidation

Change of scope of equity method

Land revaluation

Balance at March 31, 2017




Dividends paid





Land revaluation


-

-

(17,935)

Capital and Retained EarningsAccumulated Other

Comprehensive Income/(Loss)

Net unrealized

gain/(loss) on

available-for-

sale securities

Deferred gains/

(losses) on

hedges

258,957 243,048 367,601 (2,228) 867,378 3,721

(17,935)

(600)

Net income attributable to owners

of the parent93,780 93,780

(3) (3)

0 0 0

1,579 1,579

320 320

8 8

Change in treasury shares of parent

arising from transactions with non-

controlling shareholders(3,139) (3,139)

Changes in items other than capital

and retained earnings, net

Total changes during the period - (3,139) 77,752 (3) 74,610

941,988 3,913 1,188

192 1,788

192

Total Net

AssetsLand

revaluation

Foreign

currency

translation

adjustment

Accumulated

adjustments for

retirement benefits

Total

1,788

258,957 239,909 445,353 (2,231)

Mil.yen Mil.yen Mil.yen Mil.yen

Accumulated Other Comprehensive Income/(Loss)

Stock Acquisition

Rights

Non-controlling

Interests

Mil.yenMil.yen Mil.yen

976,723145,952 (36,877) (25,558) 86,638 - 22,707

(17,935)


of the parent93,780

(3)

0

1,579

320

8



controlling shareholders(3,139)


and retained earnings, net(8) 3,065 5,758 10,795 91 1,819 12,705

Total changes during the period (8) 3,065 5,758 10,795 91 1,819 87,315

1,064,038145,944 (33,812) (19,800) 97,433 91 24,526

― 11 ―


Common stock Capital surplus Retained earnings Treasury stock Total

Mil.yen Mil.yen Mil.yen Mil.yen Mil.yen Mil.yen Mil.yen




Dividends paid





Land revaluation





Dividends paid





Land revaluation


50,000

25,000 25,000

(20,924)

Capital and Retained EarningsAccumulated Other

Comprehensive Income/(Loss)

Net unrealized

gain/(loss) on

available-for-

sale securities

Deferred gains/

(losses) on

hedges

258,957 239,909 445,353 (2,231) 941,988 3,913

(20,924)

1,188

50,000


of the parent112,057 112,057

(3) (3)

1 4 5

-

-

370 370



controlling shareholders-


and retained earnings, net

Total changes during the period 25,000 25,001 91,503 1 141,505

1,083,493 8,786 305

4,873 (883)

4,873

Total Net

AssetsLand

revaluation

Foreign

currency

translation

adjustment

Accumulated

adjustments for

retirement benefits

Total

(883)

283,957 264,910 536,856 (2,230)

Mil.yen Mil.yen Mil.yen Mil.yen

Accumulated Other Comprehensive Income/(Loss)

Stock Acquisition

Rights

Non-controlling

Interests

Mil.yenMil.yen Mil.yen

1,064,038145,944 (33,812) (19,800) 97,433 91 24,526

(20,924)


of the parent112,057

(3)

5

-

-

370



controlling shareholders-


and retained earnings, net(370) 5,236 3,143 11,999 92 1,836 13,927

Total changes during the period (370) 5,236 3,143 11,999 92 1,836 155,432

1,219,470145,574 (28,576) (16,657) 109,432 183 26,362

― 12 ―

(4) Consolidated Statements of Cash Flows

(Millions of Yen)

For the years ended

Cash flows from operating activities:

Income before income taxes 128,413 157,484

Depreciation and amortization 82,416 86,954

Impairment loss 1,120 2,425

Increase/(decrease) in allowance for doubtful receivables 334 239

Increase/(decrease) in reserve for warranty expenses 18,732 (19,020)

529 292

Increase/(decrease) in liability for retirement benefits (4,953) (2,112)

Interest and dividend income (3,540) (5,076)

Interest expense 9,383 7,442

Equity in net loss/(income) of affiliated companies (30,880) (32,366)

4,899 4,775

Decrease/(increase) in trade notes and accounts receivable (19,220) (3,941)

Decrease/(increase) in inventories (11,884) (29,966)

Increase/(decrease) in trade notes and accounts payable 18,343 29,888

Increase/(decrease) in other current liabilities 19,366 26,384

Other (13,070) (8,780)

Subtotal 199,988 214,622

Interest and dividends received 17,882 34,892

Interest paid (9,193) (8,333)

Income taxes refunded/(paid) (47,580) (33,386)

Net cash provided by/(used in) operating activities 161,097 207,795

Cash flows from investing activities:

26,996 (10,166)

3,000 -

(6,480) (55,698)

581 3,450

(78,232) (87,063)

1,907 3,715

Acquisition of intangible assets (11,475) (12,120)

- 447

20 401

Payments of long-term loans receivable (428) (483)

Collections of long-term loans receivable 682 281

Other (322) (2,753)

Net cash provided by/(used in) investing activities (63,751) (159,989)

Net decrease/(increase) in time deposits

Net decrease/(increase) in securities

Purchase of investment securities

Proceeds from sales and redemption of investment securities

Acquisition of property, plant and equipment

Proceeds from sales of property, plant and equipment

FY2018

March 31, 2018

Adjustments to reconcile income before income taxes to net cash

provided by/(used in) operating activities:

Increase/(decrease) in reserve for loss on business of subsidiaries

and affiliates

Proceeds from sales of shares of subsidiaries resulting in

change in scope of consolidation

Loss/(gain) on sales and retirement of property, plant and

equipment

Net decrease/(increase) in short-term loans receivable

FY2017

March 31, 2017

― 13 ―

(Millions of Yen)

For the years ended

FY2018

March 31, 2018

FY2017

March 31, 2017

Cash flows from financing activities:

Net increase/(decrease) in short-term loans payable 10,399 (28,283)

Proceeds from long-term loans payable 96,739 92,270

Repayments of long-term loans payable (230,254) (89,910)

Proceeds from issuance of bonds - 29,863

Redemption of bonds (350) -

Proceeds from issuance of common stock - 49,780

Proceeds from sale and leaseback transactions 146 188

Repayments of lease obligations (2,112) (2,361)

(6,356) -

Cash dividends paid (17,935) (20,924)

Cash dividends paid to non-controlling interests (172) (164)

Net decrease/(increase) in treasury stock (3) 2

Net cash provided by/(used in) financing activities (149,898) 30,461

6,156 (277)

Net increase/(decrease) in cash and cash equivalents (46,396) 77,990

Cash and cash equivalents at beginning of the period 568,714 526,864

4,790 -

(244) -

Cash and cash equivalents at end of the period 526,864 604,854

Decrease in cash and cash equivalents resulting from exclusion of

subsidiaries from consolidation

Effect of exchange rate fluctuations on cash and cash equivalents

Increase in cash and cash equivalents from newly consolidated

subsidiaries

Payments from changes in ownership interests in subsidiaries

that do not result in change in scope of consolidation

― 14 ―

(5) Footnotes to the Consolidated Financial Statements

(Note on the Assumptions as Going Concern)

Not applicable

(Changes in accounting policies)

The “Balance Sheet Classification of Deferred Taxes” (Accounting Standards Update No. 2015-17 issued by

Financial Accounting Standards Board on November 20, 2015) has been early applied from the fiscal year ending

March 31, 2018 at overseas affiliated companies that apply US GAAP. Consequently, deferred tax assets and

liabilities that were presented separately in the current and non-current categories of the consolidated balance

sheets have been changed to be classified in the non-current category. The accounting standard has been applied

prospectively from the fiscal year ending March 31, 2018.

As a result, as of the end of the fiscal year ending March 31, 2018, “Deferred tax assets” in Current Assets

decreased by ¥13,078 million and “Deferred tax assets” in Investments and other assets of Non-current Assets

increased by the same amount.

There is no impact on the consolidated statements of operations for the fiscal year ended March 31, 2018.

― 15 ―

(Segment Information)

1) Overview of Reportable Segments

2) Measurement of Sales, Income or Loss, Assets, and Other Items by Reportable Segments

3) Sales, Income or Loss, Assets, and Other Items by Reportable Segments

(For the fiscal year ended March 31, 2017) (Millions of Yen)

Reportable SegmentsNorth Other Adjustment Consolidated

Year Ended March 31, 2017 America areas (Note 1) (Note 2)

Net sales:

Outside customers 1,018,151 1,073,094 589,646 533,472 3,214,363 - 3,214,363

Inter-segment sales or transfer 1,659,807 245,557 15,125 55,686 1,976,175 (1,976,175) -

Total 2,677,958 1,318,651 604,771 589,158 5,190,538 (1,976,175) 3,214,363

Segment income 65,882 26,700 5,410 20,191 118,183 7,504 125,687

Segment assets 1,998,609 418,963 202,688 275,815 2,896,075 (371,523) 2,524,552

Other items

Depreciation and amortization 56,906 18,587 4,120 2,803 82,416 - 82,416

29,050 - 2,451 99,504 131,005 - 131,005

75,510 10,587 2,075 6,227 94,399 - 94,399

Notes: 1. Notes on Adjustment:

(1) The adjustment on segment income is eliminations of inter-segment transactions.

(2) The adjustment on segment assets is mainly eliminations of inter-segment receivables and payables.

2. Segment income is reconciled with the operating income in the consolidated statement of operations for the

fiscal year ended March 31, 2017.

Segment assets are reconciled with the total assets in the consolidated balance sheet as of March 31, 2017.

Investments in equity method-

applied affiliates

Increase in property, plant and

equipment and intangible assets

The reportable segments of Mazda Group consist of business components for which separate financial statements are

available. The reportable segments are the subject of periodical review by board of directors' meetings for the purpose of

making decisions on the distribution of corporate resources and evaluating business performance.

Mazda Group is primarily engaged in the manufacture and sale of automobiles. Businesses in Japan are managed by Mazda

Motor Corporation. Businesses in North America are managed by Mazda Motor of America, Inc. and Mazda Motor

Corporation. And businesses in Europe regions are managed by Mazda Motor Europe GmbH and Mazda Motor

Corporation. Areas other than Japan, North America and Europe are defined as Other areas, regarding it as one

management unit. Business deployment in countries in Other areas are managed in an integrated manner by Mazda Motor

Corporation.

Accordingly, Mazda Group consists of regional segments based on a system of managing production and sale. As such,

Japan, North America, Europe and Other areas are designated as four reportable segments.

The accounting treatment of reportable segments are the same as that described under "Significant Accounting Policies in

Preparing the Consolidated Financial Statements." In addition, inter-segment sales or transfer are based on the current

market price.

Japan TotalEurope

― 16 ―

(For the fiscal year ended March 31, 2018) (Millions of Yen)

Reportable SegmentsNorth Other Adjustment Consolidated

Year Ended March 31, 2018 America areas (Note 1) (Note 2)

Net sales:

Outside customers 1,060,078 1,114,292 695,200 604,454 3,474,024 - 3,474,024

Inter-segment sales or transfer 1,793,880 244,093 17,688 73,577 2,129,238 (2,129,238) -

Total 2,853,958 1,358,385 712,888 678,031 5,603,262 (2,129,238) 3,474,024

Segment income 81,582 27,004 8,747 25,423 142,756 3,665 146,421

Segment assets 2,182,875 397,963 216,528 309,433 3,106,799 (378,712) 2,728,087

Other items

Depreciation and amortization 59,876 19,091 4,661 3,326 86,954 - 86,954

30,876 5,313 3,105 100,227 139,521 - 139,521

77,972 10,526 2,750 12,881 104,129 - 104,129

Notes: 1. Notes on Adjustment:

(1) The adjustment on segment income is eliminations of inter-segment transactions.

(2) The adjustment on segment assets is mainly eliminations of inter-segment receivables and payables.

2. Segment income is reconciled with the operating income in the consolidated statement of operations for the

fiscal year ended March 31, 2018.

Segment assets are reconciled with the total assets in the consolidated balance sheet as of March 31, 2018.

Investments in equity method-

applied affiliates

Increase in property, plant and

equipment and intangible assets

Japan Europe Total

― 17 ―

(Information on Amounts Per Share of Common Stock)

Net assets per share of common stock (Yen) 1,738.70 1,894.29

Net income per share of common stock (Basic) (Yen) 156.87 182.93

Net income per share of common stock (Diluted) (Yen) 156.86 182.90

Note1: The calculation basis of Net income per share of common stock is as follows.

Net income per share of common stock:

Net income attributable to owners of the parent (Millions of Yen) 93,780 112,057

Amount not attribute to common stock shareholders (Millions of Yen) - -

93,780 112,057

597,816 612,554

Diluted net income per share of common stock

- -

Increase in common stock (Thousands of shares) 39 107

- -

Note2: The calculation basis of Net assets per share of common stock is as follows.

Total Net assets (Millions of Yen) 1,064,038 1,219,470

Amount deducted from total Net assets (Millions of Yen) 24,617 26,545

(of which Stock Acquisition Rights (Millions of Yen)) (91) (183)

(of which Non-controlling Interests (Millions of Yen)) (24,526) (26,362)

1,039,421 1,192,925

597,816 629,746

(Significant Subsequent Events)

Not applicable

Number of common stock used in the calculation of net assets per share

(Thousands of shares)

Average number of shares outstanding during the period

(Thousands of shares)

Net income adjustment attributable to parent company shareholder

(Millions of Yen)

Overview of potentially dilutive common stock not included in the calculation

of diluted net income per share because the stock have no dilution effect

FY2017

(As of March

31, 2017)

FY2018(As of March 31,

2018)

Net assets related to common stock (Millions of Yen)

FY2017

(April 1, 2016 to

March 31, 2017)

FY2018(April 1, 2017 to

March 31, 2018)

FY2017

(April 1, 2016 to

March 31, 2017)

FY2018(April 1, 2017 to

March 31, 2018)

Net income attributable to owners of the parent related to common stock

(Millions of Yen)

― 18 ―

4. Unconsolidated Financial Statements and Major Footnotes

(1) Unconsolidated Balance Sheets

As of

ASSETS

Current Assets:

Cash and deposits 228,229 215,081

Accounts receivable - Trade 272,487 295,934

Securities 128,900 219,300

Finished products 43,653 48,282

Work in process 70,157 75,310

Raw materials and supplies 4,856 5,812

Prepaid expenses 4,691 2,422


Accounts receivable - Other 62,443 76,626

Short-term loans receivable 57,525 24,765

Other 22,610 24,971

Allowance for doubtful receivables (160) (218)

Total current assets 963,881 1,057,205

Non-current Assets:

Property, plant and equipment:

Buildings 82,646 88,921

Structures 15,183 15,274

Machinery and equipment 163,899 168,245

Vehicles 2,458 2,542

Tools, furniture and fixtures 23,132 22,005

Land 284,231 283,064

Leased assets 4,294 4,914

Construction in progress 33,828 37,614

Total property, plant and equipment 609,671 622,579

Intangible assets:

Software 23,782 26,301

Leased assets 3 2

Total intangible assets 23,785 26,303

Investments and other assets:

Investment securities 7,931 65,481

Stocks of subsidiaries and affiliates 208,695 214,002

Investments in capital 3 3

Investments in capital of subsidiaries and affiliates 34,234 34,234

Long-term loans receivable from employees 11 24

Long-term loans receivable from subsidiaries and affiliates 12,698 21,369

Long-term prepaid expenses 7,892 13,401


Other 3,866 3,754

Allowance for doubtful receivables (2,258) -

Total investments and other assets 284,671 358,481

Total non-current assets 918,127 1,007,363

Total Assets 1,882,008 2,064,568

(Millions of Yen)

FY2017 FY2018

March 31, 2017 March 31, 2018

― 19 ―

As of

LIABILITIES

Current Liabilities:

Trade notes payable 30 70

Accounts payable - Trade 302,487 330,290

Long-term loans payable due within one year 68,951 54,524


Accounts payable - Other 16,268 16,658

Accrued expenses 76,536 79,753

Income taxes payable 4,854 7,869

Advances received 767 895

Unearned revenue 212 254

Deposit received 15,220 26,382

Reserve for warranty expenses 123,455 104,435

Forward exchange contracts 564 122

Total current liabilities 611,034 623,301

Non-current Liabilities:

Bonds 20,000 50,000

Long-term loans payable 174,356 209,832


Deferred tax liability related to land revaluation 64,715 64,553

Reserve for retirement benefits 28,983 26,693

Reserve for loss on business of subsidiaries and affiliates 40,268 30,566

Reserve for environmental measures 638 503

Long-term guarantee deposited 5,966 6,274

Asset retirement obligations 6,219 6,661

Other 4,289 7,408

Total non-current liabilities 348,483 405,860

Total Liabilities 959,517 1,029,161

NET ASSETS

Capital and Retained Earnings:

Common stock 258,957 283,957

Capital surplus

Capital reserve 168,847 193,847

Other capital surplus 73,803 73,804

Total capital surplus 242,650 267,651

Retained earnings

Other earned surplus

Unappropriated retained earnings 273,105 331,911

Total retained earnings 273,105 331,911

Treasury stock (2,226) (2,225)

Total capital and retained earnings 772,486 881,294

Valuation and Translation Adjustments:

Net unrealized gain/(loss) on available-for-sale securities 2,752 8,088

Deferred gains/(losses) on hedges 1,218 268

Land revaluation 145,944 145,574

Total valuation and translation adjustments 149,914 153,930

Stock Acquisition Rights 91 183

Total Net Assets 922,491 1,035,407

Total Liabilities and Net Assets 1,882,008 2,064,568

(Millions of Yen)

FY2017

March 31, 2017

FY2018

March 31, 2018

― 20 ―

(2) Unconsolidated Statements of Operations

For the years ended

Net sales 2,481,384 2,635,884

2,093,897 2,238,439

387,487 397,445

341,803 337,541

45,684 59,904

1,502 1,97059 48

26,691 43,9084,375 4,3951,286 951

Total 33,913 51,272

4,833 3,11465 97

5,314 3,7505,867 3,186

Total 16,079 10,147

63,518 101,029

23 60

Total 23 9,762

16 1733,353 3,889

409 998

659 -- 7,539- 120

Total 4,437 12,719

59,104 98,072

Income before income taxesIncome taxes - Current 12,011 15,835Income taxes - Deferred (9,525) 2,878

Total 2,486 18,713

Net income 56,618 79,359

Other

Selling, general and administrative expenses

Gross profit

Cost of sales

Rental incomeDividends incomeInterest income of securitiesInterest income

Non-operating income

Operating income

Ordinary income

OtherForeign exchange lossInterest paid on bondsInterest expense

Gain on sales of property, plant and equipment

Non-operating expenses

Income before income taxes

Other

Loss on retirement of property, plant and equipment

Gain on reversal of reserve for loss on business ofsubsidiaries and affiliates

Extraordinary income

- 9,702

Loss on sales of property, plant and equipmentExtraordinary losses

Reserve for loss on business of subsidiaries and affiliates

(Millions of Yen)

Litigation settlement

FY2018

March 31, 2018

Impairment loss

FY2017

March 31, 2017

― 21 ―

(3) Unconsolidated Statements of Changes in Net Assets


Mil.yen Mil.yen Mil.yen Mil.yen Mil.yen Mil.yen




Total changes during the period



Balance at April 1, 2016 -



Total changes during the period 91

Balance at March 31, 2017 91

-

-

Capital and Retained Earnings

Common stock

Capital surplusRetained

earnings

Treasury

stock

Total Capital and

Retained earningsCapital reserve

Other capitalsurplus

Other earned

surplusUnappropriated

retained

earnings

258,957 168,847 73,803 234,414 (2,223) 733,798

Dividends paid (17,935) (17,935)

Net income 56,618 56,618

Purchase of treasury stock (3) (3)

Sale of treasury stock 0 0 0

Land revaluation 8 8

Changes in items other than capitaland retained earnings, net

- - 0 38,691 (3) 38,688

258,957 168,847 73,803 273,105 (2,226) 772,486

Valuation and Translation AdjustmentsStock

Acquisition

Rights

Total NetAssets

Net unrealizedDeferred gains/

(losses) on

hedges

Land

revaluation

Total

valuation and

translationadjustments

gain/(loss) onavailable-for-

securities

3,025 (434) 145,952 148,543 882,341

Dividends paid (17,935)

Net income 56,618

Purchase of treasury stock (3)

Sale of treasury stock 0

Land revaluation 8

40,149


(273) 1,651 (8) 1,370 91

2,752 1,218 145,944 149,914 922,491

1,461

(273) 1,651 (8) 1,370

― 22 ―






Total changes during the period



Balance at April 1, 2017 91



Total changes during the period 92

Balance at March 31, 2018 183

(20,924)

Dividends paid

1

73,804

5

79,359

922,491

881,294

4

(3)

Total NetAssets

Stock

Acquisition

Rights


8,088

Land revaluation

Net income

5,336



5,336


145,574

(370)

153,930

4,016

4,016

370

79,359

(2,225)

(20,924)

Net unrealized

58,806

Total

valuation andtranslation

adjustments

1

(2,226)

268

370

1

(3)

331,911

Unappropriated

retained

earnings

108,808

772,486258,957 168,847 73,803

Capital surplusRetained

earnings

Other capital

surplus

273,105

Other earned

surplus


Land revaluation

Net income



Dividends paid

Capital and Retained Earnings

Common stockTreasury

stockCapital reserve

Total Capital and

Retained earnings

283,957

2,752

Valuation and Translation Adjustments

Deferred gains/

(losses) on

hedges

149,914

193,847

securities

1,218

gain/(loss) on

(950)

(950) 92

(370)

1,035,407

(20,924)

79,359

(3)

5

370

4,108

112,916

25,000 25,000 50,000

50,000

25,000 25,000

145,944

Landrevaluationavailable-for-

― 23 ―

(4) Footnotes to the Unconsolidated Financial Statements

(Note on the Assumptions as Going Concern)

Not applicable

― 24 ―

Financial Summary (Consolidated) April 27, 2018

For the Fiscal Year Ended March 31, 2018 Mazda Motor Corporation

(In 100 millions of yen)

(In thousands of units)

(Upper left: return on sales)% % %

1 5,870 (11.2) 1,302 1,533 1,435 2,042 6,312 7.5 6,690 6.0

2 26,274 (4.3) 6,719 7,012 7,478 7,219 28,428 8.2 28,810 1.3

Net sales 3 32,144 (5.6) 8,021 8,545 8,913 9,261 34,740 8.1 35,500 2.2

3.9% 5.0% 4.3% 3.4% 4.2% 4.2% 3.0%

Operating income 4 1,257 (44.6) 399 366 306 393 1,464 16.5 1,050 (28.3)

4.3% 6.5% 5.2% 4.3% 4.0% 5.0% 3.7%

Ordinary income 5 1,395 (37.6) 524 441 383 373 1,721 23.4 1,300 (24.5)

4.0% 6.3% 4.3% 4.2% 3.5% 4.5% 3.4%

6 1,284 (23.1) 505 369 374 327 1,575 22.6 1,200 (23.8)

2.9% 4.6% 3.1% 2.4% 2.9% 3.2% 2.3%

7 938 (30.2) 366 267 216 272 1,121 19.5 800 (28.6)

Japan 8 659 204 302 184 126 816

North America 9 267 71 56 29 114 270

Europe 10 54 14 22 24 27 87

Other areas 11 202 50 62 80 62 254

Operating profit changes

Volume & mix 12 (130) (70) (42) 2 (240) 30

Exchange rate 13 3 156 156 85 400 (220)

Cost improvement 14 8 (2) 39 60 105 190

R&D costs 15 (62) (7) 35 (57) (91) (70)

Other 16 56 (70) (19) 66 33 (344)

Total 17 (125) 7 169 156 207 (414)

USD 108 111 111 113 108 111 107

EUR 119 122 130 133 133 130 130

USD 107 111 111 113 108 111

EUR 118 123 127 130 134 128

Capital expenditures 20 944 251 215 198 377 1,041 1,450

Depreciation and amortization 21 824 216 215 217 222 870 900

R & D cost 22 1,269 351 306 315 388 1,360 1,430

Total assets 23 25,246 25,393 25,850 26,976 27,281

Net assets 24 10,394 10,622 10,967 11,736 11,929

Financial debt 25 4,914 4,951 4,979 5,242 4,979

Net cash 26 354 207 587 557 1,070

27 973 (5) 342 (434) 575 478

Japan 28 203 (12.8) 41 55 43 71 210 3.8 215 2.1

North America 29 429 (2.1) 106 112 103 114 435 1.5 457 5.1

Europe 30 262 2.0 64 68 61 76 269 2.6 265 (1.4)

China 31 292 24.1 71 78 96 77 322 10.5 322 0.0

Other 32 373 0.6 94 92 101 107 394 5.3 403 2.2

Global retail volume 33 1,559 1.6 377 406 404 445 1,631 4.6 1,662 1.9

Consolidated wholesales volume 34 1,265 (3.2) 297 315 317 345 1,274 0.7 1,324 4.0

35 965 (2.5) 227 241 262 257 987 2.3 1,039 5.3

36 627 7.8 150 150 170 163 633 0.9

Global production volume 37 1,592 1.3 377 391 432 420 1,620 1.7

38 48,849 49,755

Note: Global retail volume refers to the total retail units of Mazda-brand vehicles sold on a global basis.

Consolidated wholesales volume does not include vehicles which are sold by other brands.

Global production volume refers to the total volume of the units produced in the domestic plant and Mexico plant (including other brands) plus

the units of Mazda-brand vehicles produced in other overseas plants (mainly in China and Thailand).

Domestic

Overseas

Free cash flow(Operating & Investing)

Number of employees

(excluding dispatches)

Transaction rate

(Yen)

Income before income taxes

Overseas

19

FY 2017

Full Year

Domestic

Average rate

for the period

(Yen)

18

3rd Qtr.

Operating income by

segment (geographic area)

Net income attributable to

owners of the parent

FY 2019

Full Year Forecast

(Apr.'16-Mar.'17)

FY 2018

Full Year

(Apr.'17-Mar.'18)1st Qtr. 2nd Qtr. 4th Qtr.

(Apr.'18-Mar.'19)

Financial Summary (Unconsolidated)For the Fiscal Year Ended March 31, 2018 April 27, 2018

Mazda Motor Corporation(In 100 millions of yen)(In thousands of units)

(Upper left: return on sales)

% %

Domestic 1 4,153 (11.2) 4,397 5.9

Export 2 20,661 (3.4) 21,962 6.3

Net sales 3 24,814 (4.8) 26,359 6.2

1.8% 2.3%

Operating income 4 457 (66.5) 599 31.1

2.6% 3.8%

Ordinary income 5 635 (57.1) 1,010 59.1

2.4% 3.7%

Income before taxes 6 591 (40.7) 981 65.9

2.3% 3.0%

Net income 7 566 (43.7) 794 40.2

USD 108 USD 111

Average rate for the period (Yen) 8 EUR 119 EUR 130

Capital investment 9 613 651

Depreciation & amortization 10 451 463

R & D cost 11 1,243 1,325

Total assets 12 18,820 20,646

Net assets 13 9,225 10,354

Financial debt 14 2,680 3,198

Net cash 15 891 1,046

Japan 16 203 (12.4) 207 1.9

North America 17 414 (1.9) 421 1.8

Europe 18 261 (4.9) 271 4.0

Others 19 349 4.0 339 (3.2)

Wholesales volume 20 1,227 (2.9) 1,238 0.9

Domestic production volume 21 965 (2.5) 987 2.3

22 21,400 21,927

Note: Wholesales volume does not include vehicles which are sold by other brands.

FY 2017 Full Year

(Apr.'16-Mar.'17)

FY 2018 Full Year

(Apr.'17-Mar.'18)

Number of employees

(excluding dispatches)

mazda motor corporation 1. consolidated financial ... · consolidated financial results for the...

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