Mitsubishi 2011 Annual Report Download - page 12

>Sales volume and performance targets
Our new mid-term business plan, Jump 2013, sets a sales
volume target for fiscal 2013 of 1.37 million units. Through
strategies and tactics mentioned previously, MMC will steadily
boost sales in emerging markets that are slated for future
growth, particularly China, Russia, ASEAN countries and Brazil.
We expect to achieve a sales volume rise of approximately 50%
in emerging markets and an increase of around 20% in mature
markets (See page 15).
In emerging markets, which are a pillar of earnings for the
Company, we will invest aggressively in anticipation of future
growth. We also plan to generate higher profits through
increased sales. Meanwhile, we plan to move back into profit-
ability in mature markets by increasing revenue, enacting stream-
lining across all areas of operational activities and thorough
cost-cutting measures. Through these measures, by fiscal 2013
we are targeting net sales of ¥2.5 trillion, operating income of
¥90.0 billion and net income of ¥45.0 billion. This amounts to
an approximate 40% increase in net sales and a doubling of
operating income compared with fiscal 2010 figures.
>Investment policies and  nancial strategies
Our future investments will be concentrated on emerging
markets and environmental initiatives. First, by building a third
factory in Thailand we will boost production capacity needed to
set up a structure which will allow us to respond to burgeoning
demand in emerging markets. As for environmental initiatives,
we will invest in expanding our lineup of electric-powered
vehicles. We will also invest in efforts to increase the efficiency of
existing production facilities. Compared with average investment
Message from the President
Performance Targets and Financial Strategies
FY2010 (Actual) FY2013 (Target)
Sales Volume (Retail)* 987 1,370
Net Sales 1,828.5 2,500.0
Operating Income 40.3 90.0
Operating Income
Ratio
2.2% 3.6%
Net Income 15.6 45.0
Net Income Ratio 0.9% 1.8%
Operating Performance
(Billions of yen, thousands of units)
F
Y2010
(
Actual
)
F
Y2013
(
Ta
rg
et
)
Sales Volume
(
Retail
)*
98
71,370
N
et
Sales
1,828
.5 2
,
500.0
Operating Incom
e
40
.
3
9
0.0
Operatin
g
Incom
e
R
at
io
2.
2%
3.6
%
N
et
I
ncome 15.6
45
.
0
Net Income Rat
i
o
0
.9
%
1.8
%
* New calculation method
during the three years of “Step Up 2010” that ended in fiscal
2010, we plan to increase our average investment during the
three years of Jump 2013 by around 60%. At the same time,
we will move forward with R&D efforts to develop new vehicles
that meet emerging market needs. In addition to prioritizing
the development of eco-cars—particularly the development of
electric-powered vehicles and related components—we will push
forward with improvements on existing technologies including
our fuel-efficient, low-CO2 engine technologies and by reducing
the weight of car bodies.
On the financial front, primarily through debt financing we
will secure the funds that will be needed to move forward with
aggressive capital and R&D expenditure. However, by improv-
ing our cash flow we expect to reduce interest-bearing debt to
below ¥340.0 billion by the end of fiscal 2012.
Finally, we consider our capital strategy to be of utmost
importance for Mitsubishi Motors. Although we have not paid
dividends on common stock for some time, during the term of
the Jump 2013 new mid-term business plan we aim to resume
dividend payments. First, it is essential for us to push forward
resolutely toward our objectives under Jump 2013 and dem-
onstrate improved profitability to our shareholders as we move
steadily toward achieving the operating targets outlined in the
Jump 2013 new mid-term business plan. With this in mind,
we will move forward with unyielding resolve to make a com-
prehensive proposal to shareholders that includes dealing with
preferred shares.
MITSUBISHI MOTORS CORPORATION
Annual Report 2011
10