Mazda Expects Profits and Income to Rise Sharply in FY2002; Forecasting FY2003 Operating Profits to be the Best in 10 Years

Tokyo, Japan, Apr. 25, 2003 - (JCN Newswire) - Mazda Motor Corporation
today announced that its strong, global turnaround remains on track, and
that fiscal year 2002 results - which the company plans to formally file
on May 12, 2003 - will show a sharp increase in both profit and revenue
compared to FY2001. Cash flow is expected to be 47 billion yen (US$391
million, 362 million euro), allowing Mazda to reduce its net debt by
53.4 billion yen (US$444 million, 411 million euro).

Highlights include:

- FY2002 group operating profit up an estimated 77 percent over FY2001
- Net income for FY2002 expected to increase 173 percent versus FY2001
- FY2002 consolidated wholesales increased by 7 percent
- Revenue better by 13 percent

Backed by strong automotive sales in Europe, Japan and other key
markets, Mazda's full-year revenue is expected to rise by 13 percent
compared to FY2001. Thanks to cost cutting actions and a weaker exchange
rate against the euro, operating profits are expected to reach 50.6
billion yen (US$421 million, 390 million euro), up 77 percent from
FY2001, and net income should increase by 173 percent to 24.1 billion
yen (US$200 million, 186 million euro).

"Our continued focus on the basics of the business - strong product
development, cost reductions efforts and a commitment to quality and
customer satisfaction - has kept our growth plans on track," said Lewis
Booth, President and CEO of Mazda Motor Corporation. "The response to
our new products has been tremendous. And while we still must improve in
North America, our results in Europe, Japan and other markets are very
encouraging, particularly in the second half of FY2002. This is why I
believe sustained, profitable growth is achievable - we expect operating
profits for FY2003 to be the best in ten years." 

Financial results for FY2002 (consolidated and unconsolidated basis): 
Consolidated revenue is projected at 2,364.5 billion yen (US$19.7
billion, 18.2 billion euro), up 13 percent from a year ago. Operating
profit is projected at 50.6 billion yen (US$421 million, 390 million
euro), a year-on-year increase of 22.1 billion yen (US$184 million, 170
million euro). Ordinary profit is projected at 40.7 billion yen (US$339
million, 313 million euro), a year-on-year increase of 21.5 billion yen
(US$179 million, 166 million euro). Net income is projected at 24.1
billion yen (US$200 million, 186 million euro), a year-on-year increase
of 15.3 billion yen (US$127 million, 118 million euro).

Compared with the October projection, all profit levels are up, with the
exception of net income. The decline in net income is more than
explained by the recent introduction of Pro Forma Taxation. These
results represent the second best operating profit and the third best
net income in a decade.

Consolidated cash flow is projected at positive 47 billion yen (US$391
million, 362 million euro) while net debt is estimated to have declined
by 53.4 billion yen (US$444 million, 411 million euro).

On an unconsolidated basis, operating profit is projected to increase
year-on-year by 3 billion yen (US$25 million, 23 million euro) to 29
billion yen (US$241 million, 223 million euro). Ordinary profit is
projected to decrease by 3.8 billion yen (US$32 million, 29 million
euro) year-on-year to 24.5 billion yen (US$204 million, 189 million
euro). A net loss of 50.2 billion yen is expected (US$418 million, 387
million euro), representing a year-on-year deterioration of 63.4 billion
yen (US$527 million, 488 million euro). This deterioration in the
unconsolidated net results is primarily due to extraordinary losses
resulting from the domestic dealer restructuring actions in the second
half of this fiscal year, as well as valuation losses in investments in
overseas subsidiaries. 
Mazda also announced its intention to declare a year-end dividend of 2
yen per share, equal to the FY2001 dividend. 

Financial projection for FY2003 (consolidated basis): 
Mazda has focused intensely on developing a line of new-generation
products that exemplify the clearly defined Mazda brand. During FY2002,
Mazda launched three new powertrains and two all-new products into the
global market - Atenza/Mazda6 and Demio/Mazda2. Both have received
critical acclaim from customers and the media around the world, with the
Atenza/Mazda6 establishing itself as the most award-winning car in
Mazda's history. Mazda will launch two additional all - new models
during FY2003 - Mazda RX-8 and a yet-to-be-named C-car. It is
anticipated that these new products will drive further global sales
growth.

In Japan, Mazda projects a 1.1 percent decrease in industry sales to 5.8
million units in FY2003. Overseas, U.S. industry sales are projected to
decline by 1.6 percent; and Western Europe by 3.9 percent. Mazda
forecasts the yen at average exchange rates of 115 yen to the U.S.
dollar and 125 yen to the euro.

Under these circumstances, consolidated revenue is projected to increase
by 2.3 percent from the previous year to 2,420 billion yen (US$21
billion, 19.4 billion euro) in FY2003. Operating profit is projected to
increase by 28.3 percent to 65 billion yen (US$565 million 520 million
euro) - which would represent the best operating profit result in a
decade - with ordinary profit increasing by 40 percent to 57 billion yen
(US$496 million, 456 million euro). Net profit is projected to grow by
24.3 percent to 30 billion yen (US$261 million, 240 million euro), with
cash flow positive at 40 billion yen (US$348 million, 320 million euro).


Note

Financial Results:
- Dollar equivalents compiled at 120.20 yen to the dollar (Exchange rate
prevailing on March 31, 2003). 
- Euro equivalents compiled at 129.83 yen to the euro (Exchange rate
prevailing on March 31, 2003). 

Financial Projection:
- Dollar equivalents compiled at 115 yen to the dollar. 
- Euro equivalents compiled at 125 yen to the euro.


About Mazda Motor Corporation

Mazda Motor Corporation was established in 1920 and is one
of Japan's leading automobile manufacturers. With its headquarters
in Hiroshima, Mazda has two plants in Japan and manufacturing and
assembly operations in sixteen other countries. Mazda cars and trucks
are sold in more than one hundred and thirty countries. Ford Motor and
Mazda agreed to collaborate in 1979, Ford Motor Company started
investing in Mazda and increased its shareholding to 33.39% as of March
31, 1999. For further information, please visit the Mazda Motor
Corporation home page at: www.mazda.com/flash.html
<http://www.mazda.com/flash.html>