Mitsubishi 2015 Annual Report Download - page 37

MITSUBISHI MOTORS CORPORATION
Annual Report 2015 35
Operational Review
Fiscal 2014 marked the initial year of the MMC Group’s
“New Stage 2016” mid-term business plan. The plan adopts six
basic policies:
• Revenue growth by launching strategic models
• Development of next-generation technology
• Growth strategy based on emerging markets and profit
improvements in mature markets
• Restructuring of the operating structure
• Growth investments for establishing a stable business foundation
• Actions for quality improvement
In line with these policies, over the term under review the
MMC Group has worked toward achieving sustained growth
and increasing its corporate value.
Results of Operations
Global retail sales volume for the full 2014 fiscal year totaled
1,090,000 units, an increase of 4% or 43,000 units over the
same period in FY2013.
By geographic region, in Japan sales volume decreased with
both registered vehicles and minicars totaling 115,000 units,
a year-on-year decrease of 20% or 28,000 units. In North
America, sales volume totaled 117,000 units, an increase
of 21% or 20,000 units over the same period last year. The
increase was driven by brisk sales of the Outlander Sport and
Mirage as economic recovery in the United States moved onto
a firmer pace. In Europe, sales volume totaled 227,000 units,
an increase of 13% or 25,000 units year on year. Despite
worsening economic situation in Russia which affected sales
decline from the same period last year, the sales increase of the
Outlander PHEV in western Europe contributed to the overall
increase for the region. In Asia, sales volume totaled 344,000
units, which was about the same level as the same period last
year. Although recovery in total demand for Thailand remained
sluggish, an increase in sales in China, mainly stemming from
GAC Mitsubishi Motors Corporation offset this. Sales volume
in other regions totaled 287,000 units, an increase of 10% or
26,000 units year-on-year. Sales increased in the Middle East,
resulting in an overall increase in sales for the region.
Net Sales and Income
Mitsubishi Motors Group posted cumulative consolidated results
for fiscal 2014 which set record profits in all profit indicators,
as follows: Net sales increased by ¥87.3 billion, or 4% year-
on-year, to ¥2,180.7 billion. Operating income rose by ¥12.5
billion, or 10% increase year-on-year to a profit of ¥135.9
billion. Despite negative factors such as an increase in selling
costs and R&D expenses along with a decrease in profits in
volume and model mix, improvements in continuous efforts on
reducing costs as well as favorable exchange rate contributed to
the overall increase. Net income increased by ¥13.5 billion, or
13% year-on-year, to ¥118.2 billion.
Business Segment Information
z Automobiles
In the automobile business sector, for the year ended March 31,
2015, net sales totaled ¥2,166.2 billion, up ¥85 billion or 4%
over the previous fiscal year. Segment income of ¥135.1 billion
was up ¥13.2 billion over fiscal 2013.
z Financial Services
In the automobile financing business sector, for the year ended
March 31, 2015, net sales totaled ¥14.6 billion, up ¥2.4 billion
or 20% over the previous fiscal year. Segment income of ¥0.9
billion was down ¥0.6 billion over fiscal 2013.
20142012 2013
Japan
Regional Sales Volume (Retail)
(Thousands of units)
(FY)
(Thousands of units)
(FY)
(Thousands of units)
(FY)
(Thousands of units)
(FY)
Registered
Vehicles
Minicars
20142012 2013
North America
United
States
Canada &
Mexico
20142012 2013
Europe
Western
Europe &
others
Russia &
others
20142012 2013
Asia
North Asia
ASEAN
(Thousands of units)
(FY)
20142012 2013
Other Regions
Australia
& NZ
Latin
America
Middle East
& Africa
143
91
52
75
40
97
85
57
28
66
31
117
82
35
202
91
111
227
73
154
344
101
243
344
216
128
357
71
286
230
71
64
95
261
81
77
103
287
107
101
79
181
88
93
134
73
61
115
Financial Results and Discussion