Mitsubishi 2013 Annual Report Download - page 31

Operational Review
During the year, ended March 31, 2013, the operating environ-
ment for automobile makers remained harsh, with the seem-
ingly recovering China market slowing down entering this year;
however some good signs are becoming visible. While severe
economic conditions in Eurozone countries continued due to
sovereign credit uncertainty, political measures adopted by EU
governments since summer of last year are beginning to restore
calm in European financial markets. The U.S. economy has also
recently started along the path to recovery. In addition, the
long-running super-strong Japanese yen is headed on a path to
correction.
The year ended March 31, 2013, was the second year for
the “Jump 2013” mid-term business plan, and during the year
Mitsubishi Motors focused its efforts on emerging markets, envi-
ronmental initiatives, and raising profit levels in order to achieve
the plan’s fundamental goal of “Growth and Leap Forward.”
Results of Operations
Global retail sales volume totaled 987,000 units, a 1% or
14,000-unit decrease over the last fiscal year.
By geographic region, in Japan, Mitsubishi Motors posted a
cumulative sales volume of 134,000 units, a 12% or 18,000-unit
decrease over the last fiscal year. Despite registered vehicles
maintaining a sales volume at about the same level as the last
fiscal year, minicar sales lagged, including the eK Wagon which
is coming to the end of its current model life cycle. In North
America, Mitsubishi Motors posted a sales volume of 85,000
units, a 20% or 21,000-unit decrease over the previous fiscal
year. Although in the United States sales of the Outlander Sport
(RVR or ASX in other markets) , which went into local produc-
tion, increased over the last fiscal year, the decrease was due
mainly to a drop in overall sales following termination of the
U.S. market models in the preceding fiscal year. In Europe, al-
though sales volume increased over the previous year in Russian
market where overall sales demand increased, sales volume
decreased in western Europe where overall demand decreased,
which resulted in a cumulative sales volume of 181,000 units, a
17% or 37,000 units decrease over the previous fiscal year. In
Asia and Other Regions, Mitsubishi Motors posted a sales vol-
ume of 587,000 units, a 12% or 62,000-unit increase over the
previous year. The growth was driven by strong sales in ASEAN
bloc countries where Mitsubishi Motors’ sales increase outpaced
the growth of overall automobile market demand in Thailand.
Net Sales and Income
Mitsubishi Motors posted consolidated net sales of ¥1,815.1
billion, a 0.4% or ¥7.8 billion increase over the previous fiscal
year. Mitsubishi Motors posted operating income of ¥67.4
billion for the fiscal year ended March 31, 2013, a 6% or ¥3.7
billion increase over the last fiscal year. Although recall cam-
paign expenses and selling costs increased, improvements in
the volume and model mix and reductions in raw materials and
other costs contributed this rise. Net income rose ¥14.1 billion,
or 59% over the last fiscal year to ¥38.0 billion as a result of the
company recording extraordinary profits and losses—extraordi-
nary profit from the sales of shares in GAC Changfeng Motor
Co., Ltd., and a an extraordinary loss on the sales of shares in its
European production subsidiary, NedCar.
Business Segment Information
• Automobiles
In the automobiles sector, for the year ended March 31, 2013,
sales totaled ¥1,805.1 billion, up ¥8.0 billion or 0.4% over the
previous fiscal year. Segment income of ¥65.0 billion was up
¥4.6 billion year on year.
• Financial Services
In the financial services sector, for the year ended March 31,
2013, net sales totaled ¥10.1 billion, down ¥0.3 billion or 3%
over the previous fiscal year. Segment income of ¥2.4 billion
was down ¥1.0 billion year on year.
20122010 2011
Japan
(Thousands of units)
FY2012 Regional Sales Volume (Retail)
(FY)
Registered
Vehicles
Minicars
152
164
104
60
91
61
73
61
134
(Thousands of units)
(FY)
20122010 2011
North America
United
States
Canada &
Mexico
106
94
62
32
75
31 85
57
28
(Thousands of units)
(FY)
20122010 2011
Asia and Other Regions
North Asia
ASEAN
Australia
& NZ
Central and
South America
Middle East
& Africa
511
94
102
85
68
162
525
66
99
93
67
200
587
71
95
64
286
71
(Thousands of units)
(FY)
20122010 2011
Europe
Western
Europe
Central
Europe
Russia &
others
218
64
32
122
218
83
26
109
181
88
15
78
MITSUBISHI MOTORS CORPORATION
Annual Report 2013 29
Financial Results and Discussion