[Takashi Yamanouchi, Representative Director and Chairman of the Board, President and CEO]

Good morning everyone and thank you for joining us at the Mazda stand today. Mazda entered this market just over ten years ago, and since then, China has become vitally important to the growth of our business. We have vehicle and engine assembly plants, Reseach and Development facilities and hundreds of thousands of customers in China. I would like to thank our partners Changan Automobile Group, First Automotive Works, Ford Motor Company, all the Mazda Dealers and especially our customers who have shown great faith in Mazda for contributing to our success in this market.

This has been a very important auto show season for Mazda. It started last September in Frankfurt and wraps up with this auto show in Beijing. Over the past eight months, we have showcased three important innovations for our company: a complement of new technologies that we call SKYACTIV, a new design language which we call KODO; as well as the first of a new-generation of vehicles based on those innovations, the CX-5 crossover SUV.

It is very exciting to be able to introduce vehicles that are completely new:

• new ultra-high compression gasoline engines;
• new ultra-low compression diesel engines;
• new body structures and chassis systems that improve ride and handling;
• vehicles that will weigh 100 kilogram less than the models they replace without sacrificing rigidity or crash worthiness.

Focus on the vehicle's core technologies, make them as efficient as possible and then offer those benefits throughout the model lineup – this is how Mazda will deliver on a commitment made 4 years ago, to improve the fuel economy of its vehicle fleet 30 percent by 2015.

And the innovations we have introduced this year extend beyond powertrains and transmissions. The very essence of how we bring a car to market has been revolutionized. Bringing together engineers, designers, manufacturing experts and suppliers we have re-invented our vehicle development process, reducing costs and improving performance, quality and productivity significantly.

Hand in hand with the innovations that form the foundation of our new generation of vehicles is the adoption of a new design language – called KODO or Soul of Motion. Drawing inspiration from the tension seen in animals as they hunt their prey, Mazda is using proportion and stance to express this dynamic and create a distinctive presence that will be admired for years and years.

The SHINARI concept car – which is on display here – is the first example of KODO, created as an exercise to express the vision of the designers, to demonstrate the full potential of this new form and hint at Mazda vehicles to come.

The CX-5 is our first mass production vehicle to embody KODO and also to utilize all the SKYACTIV technologies. This compact crossover has recently gone on sale around the world. I want to tell you that based upon reports we are receiving from our different sales organizations, the CX-5 is a hot seller! Around the world customer interest exceeds our expectations. To give you just one example, in Japan, after only 6 weeks on the market, customer orders already exceed our annual sales target of 12,000 units!
And I am very pleased to confirm today, that we will launch the new CX-5 here later this summer through our Changan Mazda network. I am confident that it will prove to be as popular with consumers here as it is in other markets around the world.

While initially the CX-5 will be imported, within one year we will start to build the CX-5 at our Changan Ford Mazda Automobile manufacturing plant in Nanjing. Introducing our new SKYACTIV technologies and the CX-5 is just one part of our very ambitious plans for China. Mazda is making additional investments in China as well. Earlier this month we announced that around the end of year, we will start to build the CX-7 mid-size sport utility vehicle at our FAW Car Company plant and sell it through our FAW Mazda Motor Sales channel.

Today I am pleased to announce that:
Early next year, we will add our range-topping CX-9 sport utility vehicle to our lineup and offer it through that same network as well. And, beginning next year we will start the production of SKYACTIV engines at our Changan Ford Mazda Engine plant for use in domestically produced vehicles.

Our global objective is to achieve annual sales of 1.7 million vehicles by the end of the 2015 fiscal year, four years from now. China plays a significant role in that plan. We are expanding our sales network into new regions and will also increase our domestically manufactured product lineup from the 6 models we sell now to 10 models in four years time. Based upon our plan China will account for at least 400,000 annual sales, or just about 25 percent of our worldwide total. There is no doubt that with our manufacturing, R&D and sales operations located here, that China will continue to play a very, very important role in the future growth of Mazda.

Now ladies and gentlemen, without further ado, I am pleased to present to you the newest star in the Mazda line up – the CX-5! Thank you for joining us today.

[Noriaki Yamada, Managing Executive Officer; Chairman and CEO, Mazda Motor (China) Co., Ltd.]

Hello again, my old friends! Thank you very much for coming to Mazda's press conference today despite your busy schedules.

Did you like the Mazda CX-5 that makes full use of Mazda's new-generation SKYACTIV TECHNOLOGY?

In China last year, Mazda's sales volume unfortunately only reached 215,000 units; a 10% decrease year-on-year. This was due to the end of the tax reduction program for small cars, Beijing's cap on new car registrations, and the impact of the Great East Japan Earthquake.

The market conditions this year are expected to be even harsher than last, but Mazda is determined to achieve a 270,000 unit-sales target with a 26% increase year-on-year. To meet this target we will employ a variety of measures, with a focus on enhancing sales performance and improving product appeal.

In order to improve our sales network we plan to increase the number of dealerships by about 50. The majority of these will be in fast-growing Tier 3 and Tier 4 cities. As a result, the total number of 4S dealerships will be 420 for both sales channels. Additionally, to improve the performance of each dealership, we plan to increase training opportunities for positions ranging from upper-management to sales staff.

Launched in China during the second half of last year, the new Mazda3 Xingcheng will drive sales throughout this year. Also, new versions of the Mazda2, Mazda6 and Mazda8 will be introduced to the Chinese market. The 2012 Mazda6 Ruiyi is on exhibit at the Mazda Stand, so please take a look at it. Furthermore, the all-new Mazda CX-5 is to be introduced this summer and will be sold through the Changan Mazda sales channel. Early next year, the CX-9, Mazda's full-sized SUV which has proven very popular in countries like America and Australia, will be introduced through the FAW Mazda sales channel. Mazda intends to accelerate our growth in China with this enhanced lineup of SUVs, including the CX-5, CX-7 and CX-9.

Let me tell you about the new Mazda CX-5 making its Chinese debut here at the Beijing Motor Show.

The CX-5 is the first of Mazda's new-generation of products that reflect our KODO-SOUL of MOTION design theme and employ the full range of SKYACTIV technologies. SKYACTIV TECHNOLOGY is incorporated in every part of the vehicle, the engine, the transmission, the body and the chassis, to achieve a harmonious balance between a high quality, rewarding ride and excellent environmental and safety performance.

The CX-5's engine achieves an exceedingly high compression ratio of 13.0:1 by significantly increasing combustion efficiency with an enhanced combustion chamber and exhaust system. For the transmission, a new lock-up clutch is adopted to maximize the lock-up range. With the body, rigidity and collision safety performance have been improved while at the same time reducing weight. For the chassis, we have again achieved a significant weight reduction and simultaneously achieved increased driving pleasure and comfort. Also, the CX-5 is the first Mazda in China to feature our unique idling stop i-stop system.

Thanks to technological innovation in every area, the CX-5 is able to offer both pleasurable driving -- always at the core of the Mazda brand, and outstanding fuel economy of 6.7L per 100km, at the same time. I am confident that if you drive the CX-5, you will understand its development concept; "The Best of Crossover SUV", that is, a stylish vehicle providing a predictable and responsive driving experience, together with insightful features that owner will enjoy using for many years to come.

Mazda's aim is to provide all our customers with a combination of driving pleasure and outstanding environmental and safety performance. Moving forward, we intend to introduce SKYACTIV TECHNOLOGY to the majority of new models to be launched in the Chinese market. Please look forward to that.

Thank you very much for your kind attention.