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43
MITSUBISHI MOTORS CORPORATION
Annual Report 2005
Financial Section
On January 28, 2005, we announced the Mitsubishi Motors Revitalization Plan. This plan aims to restore profitability in
fiscal 2006 and maintain profitability in fiscal 2007 and beyond. To achieve these targets, the plan outlines product
strategies, alliance strategies, regional strategies, and cost reductions. We have been steadily implementing the initia-
tives laid out in the plan since the start of fiscal 2005. In this context, the Finance Group Headquarters has two major
roles to play.
First, it is our job to steer the company along the straightest road toward complete recovery. This involves carefully
monitoring quantitative financial data on MMC’s performance to analyze progress with various initiatives, and results
being achieved in all aspects of the plan. By ascertaining quickly the financial status of MMC’s entire operations and
keeping a close eye on current and future earnings prospects, we aim to prevent the company from straying off the path
to restoring profitability that is set out in the revitalization plan. Also, we submit regular reports on financial progress to
the Business Revitalization Monitoring Committee (BRMC). The BRMC provides strict external checks and also gives us
valuable advice to steer management in the right direction.
Second, we are focused on the vital task of securing the funds required for the revitalization process, principally the
capital needed to develop the new models that promise to be the main driver of restored profitability. The revitalization
plan calls for ¥490 billion in additional funding. In fiscal 2004, we raised ¥250 billion, just over half this sum, through
third-party share allocations and long-term borrowings. For the remaining ¥240 billion, in addition to keeping a close eye
on capital spending and R&D budgets, we continue to seek the ideal timing and methods to raise capital through closer
communication with various investors and financial institutions.
Progress on Fund Procurement Plan Announced on January 28, 2005 (¥490 billion)
Funds procured in fiscal 2004 Funds to be procured in fiscal 2005 and beyond
•Capital increases • Capital increases or
(excluding debt-equity swaps): ¥220 billion commercial asset divestitures: ¥ 30 billion
• Long-term borrowings: ¥ 30 billion • Borrowings and other sources: ¥210 billion
Total: ¥250 billion Total: ¥240 billion
The three-year period covered by the revitalization plan is a vital period for MMC to recover its strength, restore
profitability and prepare for the next stage of growth. We are approaching this difficult task in small stages, one step at a
time, with the emphasis firmly on staying the course. I remain confident that our efforts will result in steady growth in
shareholder value, and that we will succeed in meeting the expectations of all stakeholders.
MESSAGE FROM THE HEAD OF THE FINANCE GROUP
Hiizu Ichikawa
Managing Director
In Charge of Finance Group Headquarters