Mazda Motor Corporation (“Mazda”) hereby makes a notice that Mazda posted the following extra-ordinary losses in the consolidated and unconsolidated financial results for the fiscal year ended March 31, 2016 (from April 1, 2015 through March 31, 2016).
In addition, as to the consolidated financial results for the fiscal year ended March 31, 2016 that have been released today, Mazda hereby makes a notice that there have been variances between the previous forecast and the actual results. The previous forecast was released on February 4, 2016.
1. Contents of Extra-ordinary Losses (Consolidated and Unconsolidated)
Reserve for product warranties : ¥40,708 million
With regard to the specific airbag inflator installed in a part of Mazda vehicles, which were manufactured and sold by Mazda group, Mazda posted the reserve for product warranties in extra-ordinary losses, since they are likely to be its liability and the amount of the loss can be reasonably estimated.
2. Variance between Consolidated Financial Forecast and Actual Results
(1) Consolidated Fiscal Year Ended March 31, 2016 (April 1, 2015 through March 31, 2016)
Note: Mazda implemented a share consolidation on its common stock with a ratio of five shares to one share on August 1, 2014. Net income per share is calculated based on the assumption that consolidation of shares had been carried out at the beginning of the previous fiscal year.
(2) Reasons for the Variance
In terms of the consolidated financial results for the fiscal year ended March 31, 2016, sales, operating income and ordinary income were almost at the same level as those in the previous forecast released on February 4, 2016. On the other hand, variance in net income attributable to owners of the parent includes the reserve for product warranties in extra-ordinary losses, stated in above 1, as well as the decrease in income taxes-deferred (positive impact) due to the recording of deferred tax assets following a review of the collectability of deferred tax assets.
