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.May 19, 2004
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This Week:

• The Best of Both Worlds: Mercedes-Benz SLR McLaren Production in Woking

• Toyota's Calty Design Opens Satellite Studio in Ann Arbor

• Porsche names official importers for India and Yemen

• Nissan Korea Unveils Infiniti Launch Strategy

• BMW Advertising Award Presented For The First Time

• Ford Motor Company Elects Wagner Vice President

• Honda Releases New 8-Passenger Elysion Minivan

• Magna and DaimlerChrysler Corporation Sign Agreement Concerning New Venture Gear

• Mazda Reports Strong FY2003 Results

• Volkswagen Touareg: Germany's most popular luxury class SUV

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Mazda Reports Strong FY2003 Results

• Operating profit up 39 percent to 70.2 billion yen (€ 545.6 million) - best result in 10 years

• Net income up 41 percent to 33.9 billion yen (€ 263.0 million)

• Third consecutive year of sales and revenue growth
   

  Hiroshima - Mazda Motor Corporation reported significant increases in all profit levels for FY2003. The Hiroshima-based company announced that FY2003 operating profits represented the company's strongest performance in a decade. In announcing its FY2003 results, Mazda also reported that commencing with FY2003, the fiscal-year ends of its overseas subsidiaries have been changed to March 31 to match the parent company's fiscal period. Previously, Mazda's overseas subsidiaries had fiscal periods ending on December 31.

Mazda's FY2003 consolidated revenue was 2,916.1 billion yen (€ 22,623.0 million). This represented an increase of 9 percent over FY2002, excluding the impact resulting from the fiscal year change. Operating profit increased by 39 percent to 70.2 billion yen (€ 545.6 million), and net income, at 33.9 billion yen (€ 263.0 million), was up 41 percent.

With strong FY2003 results, Mazda posted a gain in both revenue and profit for the third consecutive year. The significant increase in profits for FY2003 was driven mostly by strong overall sales, favourable exchange rates and successful implementation of the company's ABC cost reduction initiative. In FY2003, the company successfully completed the introduction of the Mazda2 in Europe and globally launched the RX-8 and Axela/Mazda3.

Mazda President and CEO Hisakazu Imaki said, "We have successfully completed the launch of four new-generation products globally. We are proud that these vehicles, as well as the RENESIS rotary engine, have won more than 140 awards around the globe and have contributed strongly to our improved sales in FY2003. We are confident that our product-led growth will continue. The business environment is expected to be tougher in FY2004, however, including adverse exchange rate movements and higher raw material prices. Our goal is to deal with these challenges by continuing our strong cost reduction focus and our product-led sales momentum."

Financial results for FY2003 (consolidated basis)

Consolidated revenue was 2,916.1 billion yen, up 551.6 billion yen (€ 4.279 billion) from a year ago. Operating profit was 70.2 billion yen, a year-on-year increase of 19.6 billion yen (€ 152 million). Ordinary profit was 58 billion yen, a year-on-year increase of 17.3 billion yen (€ 134.2 million). Net income was 33.9 billion yen, a year-on-year increase of 9.8 billion yen (€ 262.9 million).

Consolidated cash flow was positive at 49.1 billion yen (€ 380.9), while net debt declined by 45.4 billion yen to 358.1 billion yen (€ 2,778.1 million). The company's net debt-to-equity ratio improved from 208 percent to 161 percent.

Mazda has also confirmed its intention to declare a year-end dividend of 2 yen per share, equal to the FY2002 dividend.

Financial projection for FY2004 (consolidated basis)

Mazda's FY2004 global vehicle sales, driven in large part by the company's new-generation products, are projected to increase in all key markets, including Japan, the U.S., Europe and China. New products including the Mazda Verisa, a compact scheduled to be launched this summer in Japan, will further enhance Mazda's global product line.

Specifically, in the United States, full-year sales of the Mazda3, two new Mazda6 models, additional products including a turbocharged Mazdaspeed MX-5 and a strengthened sales network are expected to deliver a 10 percent sales increase in the coming year.

Mazda will remain focused on its ABC cost reduction efforts and is projecting to achieve significant cost savings during FY2004.

Mazda is also rebalancing production capacity in FY2004 with the Hiroshima F Plant closing on April 21, and Ujina Plant No. 2 commencing operations on May 26. With this action, the company will expand production capacity and improve efficiency to support launches of new products that ensure further product-led growth.

The company projects profit levels in FY2004 to be in line with FY2003.

Projected financial results for FY2004 are:

Sales revenue: 2,660 billion yen (€ 21,280.0 million), up 85.3 billion yen (€ 682.4 million) over the previous year, excluding the impact resulting from the fiscal year change

Operating profit: 70 billion yen (€ 560.0), down 200 million yen (€ 1.6 million)

Ordinary profit: 65 billion yen (€ 520.0), up 7 billion yen (€ 56.0 million)

Net profit: 34 billion yen (€ 272.0), up 100 million yen (€ 800,000)

Notes: Financial Results: - Dollar equivalents compiled at 105.69 yen to the dollar (Exchange rate prevailing on March 31, 2004). - - Euro equivalents compiled at 128.90 yen to the euro (Exchange rate prevailing on March 31, 2004). - Financial Projection - - Dollar equivalents compiled at 105 yen to the dollar. - - Euro equivalents compiled at 125 yen to the euro.

(May 13, 2004)