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Operational Review
During fiscal 2013, the operating environment surrounding the
automobile industry continued to be characterized by destabilizing
factors. The global economy showed some signs that a recovery
was gaining momentum, such as economic recovery in the United
States, the bottoming out of economic troubles in the Eurozone
and the correction in the high value of the yen as a result of
the Bank of Japan's fiscal easing policy. However, the operating
environment was negatively affected by upheavals in emerging
market economies due to the scale-back in the United States’
quantitative easing policy, slowing growth in Chinese economy,
political and economic difficulties in some emerging nations and
geopolitical risks, which now include tensions in the Ukraine.
Fiscal 2013 was the final year of the Company’s Jump 2013
mid-term business plan. During the year, Mitsubishi Motors
focused its efforts on emerging markets, environmental initia-
tives and raising profit levels to achieve the plan’s fundamental
goal of “growth and a leap forward.”
Results of Operations
Global retail sales volume for the fiscal 2013 totaled 1,047,000
units, an increase of 6%, or 60,000 units, from fiscal 2012.
By geographic region, in Japan Mitsubishi Motors posted
a sales volume of 143,000 units, a year-on-year increase of
7%, or 9,000 units. A decrease in registered car sales was
more than countered by firm sales of the eK Wagon and eK
Custom minicar models launched in June 2013 and of the eK
Space minicar model, launched in February 2014. In North
America, the Company’s sales volume amounted to 97,000
units, up 14%, or 12,000 units. Driving this rise was the launch
of new Outlander SUV and Mirage models. In Europe, we
recorded a sales volume of 202,000 units, up 11%, or 21,000
units. Behind this rise was the launch of the Outlander PHEV
and other new models. In Asia, the Company’s sales volume
amounted to 344,000 units, down 4%, or 13,000 units, from
the previous year. Sales volume decreased in Thailand as a result
of sluggish demand stemming from the ending of the Thai
government's First Buyer Program in December 2012, as well as
to political upheaval. This drop was partly countered by major
growth in sales in China, especially at GAC Mitsubishi Motors,
and by record sales volume in Indonesia and the Philippines.
In other regions, the sales volume came to 261,000 units, up
14%, or 31,000 units. The increase was due to higher sales
volume in Australia, New Zealand, Central and South America,
and the Middle East & Africa.
Net Sales and Income
In fiscal 2013, the Group posted record profits in all categories.
Net sales increased ¥278.3 billion, or 15% year on year, to
¥2,093.4 billion. Operating income rose ¥56.0 billion, or 83%,
to ¥123.4 billion, as a result of favorable foreign exchange
rates and solid progress in the ongoing reduction of material
and other costs, despite increases in sales and R&D costs. Net
income increased ¥66.7 billion, or 176%, to ¥104.7 billion.
Business Segment Information
Automobiles
In the automobiles sector, for the year ended March 31, 2014,
sales totaled ¥2,081.2 billion, up ¥276.1 billion or 15% over
the previous fiscal year. Segment income of ¥121.9 billion was
up ¥56.9 billion year on year.
Financial Services
In the financial services sector, for the year ended March 31,
2014, net sales totaled ¥12.2 billion, up ¥2.1 billion or 21%
over the previous fiscal year. Segment income of ¥1.5 billion
was down ¥0.9 billion year on year.
20132011 2012
Japan
Regional Sales Volume (Retail)
(Thousands of units)
(FY)
(Thousands of units)
(FY)
(Thousands of units)
(FY)
(Thousands of units)
(FY)
Registered
Vehicles
Minicars
20132011 2012
North America
United
States
Canada &
Mexico
20132011 2012
Europe
Western
Europe &
others
Russia &
others
20132011 2012
Asia
North Asia
ASEAN
(Thousands of units)
(FY)
20132011 2012
Other Regions
Australia
& NZ
Latin
America
Middle East
& Africa
134
152
91
61
73
61
91
52
85
106
75
31
57
28
97
66
31
218
83
135
181
88
93
202
91
111
299
99
200
357
71
286
344
243
101
226
66
67
93
230
71
64
95
261
81
103
77
143
MITSUBISHI MOTORS CORPORATION
Annual Report 2014 29
Financial Results and Discussion