Hello everyone, my name is Justin Paul. I am currently a graduate student in the Design MBA program at California College of the Arts. I am going to walk you through a brief analysis of the Mazda Annual Report from 2013 – 2015. During this period, Mazda made a substantial shift that led to nearly a billion-dollar spike in net and operating income, all while maintaining their debt-to-equity, current, and quick ratios for a seemingly low-risk and overnight miracle, all thanks to innovation. I chose Mazda because one of my first cars in high school was a 2004 Mazda RX-8. I drove this car for 7 years before giving it up, and my next car will probably be a Mazda as well. If I were to work for a car company in design, Mazda would be high on my list. You see, Mazda has always taken pride in their individuality, avoiding the “cookie-cutter” image and serving the niche market of driving enthusiasts who desire affordable performance and efficiency in an attractive, fun to drive package. The Mazda heritage is known as the “Zoom-Zoom” way, and along with many other innovative solutions, Mazda is constantly surprising the industry with new ways to approach old problems. Those things I admire most about them. But how innovative are they? Mazda claims that their focus is on innovation, but our professor Marty Low taught us to always find the story in the numbers. Therefore, we will examine the statements and ratios for clues to evidence of their success in 2013, and we will also investigate the notion that there is a connection between sales performance and the investments made into research and development. As many of you may know, Mazda is a Japanese company based out in Hiroshima, Japan, so for reference, keep in mind that 120 Yen is equal to 1 USD. I will try to state my figures in US currency, ratios and percentages, even though the statement mostly shows Yen. After the analysis, the big question is such: would I consider Mazda the innovative powerhouse that it claims to be? Not as defined by most. The overhaul of the company certainly yielded great returns, and they were willing to follow through with aggressive marketing relative to their size. However, Mazda is not trying to be at the cutting edge of autonomous vehicles or alternative fuels. They are addressing those who are buying a car right now and want to have a blast during their commute each day. In summary, Mazda separated from Ford by 2013, just in time to release an entirely redesigned fleet, and are selling dramatically more cars than before. They are certainly an underdog company that never ceases to amaze me. They keep their ears open to hear our concerns, and their sales strategy is to maintain all former Mazda drivers while developing vehicles that newcomers might enjoy as well. Their “Clean Slate” approach to design truly did create the success they have now, and I look forward to seeing the continued progress Mazda will make now that it is no longer persuaded by a different company. I hope you enjoyed my analysis of the Mazda Motor Corporation. Thank you.