Mitsubishi 2005 Annual Report Download - page 47

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MITSUBISHI MOTORS CORPORATION
Annual Report 2005
Financial Section
< Geographical Segment Information >
The geographical segment analysis provided in this section is
based on results aggregated by the region of the end user.
Accordingly, figures differ from the ‘Geographic Segment
Information’ section provided in the Note 19-(b) to Consoli-
dated Financial Statements, which is aggregated by the region
of the MMC-related company chiefly involved in the transaction.
Figures in this section correspond to the sales figures reported
in the ‘Overseas Sales’ section in the Note 19-(c) to the
Consolidated Financial Statements.
■Japan
In Japan, sales decreased by ¥208.4 billion, or 33.5%, to
¥412.9 billon compared with the previous fiscal year due to a
decline in sales centered on registered vehicles. The operating
loss widened to ¥97.0 billion, reflecting a deterioration of
¥61.7 billion. In Japan, retail sales decreased 132,000 units
year on year to 227,000 units.
■North America
Sales in North America declined ¥159.3 billion, or 26.5% year
on year, to ¥441.4 billion. This was primarily due to lower fleet
sales. The operating loss significantly narrowed to ¥103.8
billion, an improvement of ¥43.6 billion from the previous year,
reflecting sharply lower losses in the financial services unit.
Retail sales fell substantially to 174,000 units, a decline of
99,000 units compared with the previous fiscal year.
■Europe
Sales in Europe increased ¥5.8 billion, or 0.9% year on year, to
¥667.8 billion. This was largely due to the launch of the new
Colt , and brisk sales particularly in the U.K., Russia and the
Ukraine. Operating profit totaled ¥7.2 billion, a decline of
¥16.3 billion year on year. In Europe, retail sales climbed
27,000 units over the previous year’s total to 241,000 units.
■Asia, ASEAN and Other Regions
Overall sales in Asia, ASEAN, and other regions declined ¥34.9
billion, or 5.5% year on year, to ¥600.5 billion. Although unit
sales were largely unchanged, the high ratio of relatively low-
priced production parts and components in total sales drove
down sales. Operating profit increased ¥2.8 billion to ¥65.1
billion. Overall retail sales in Asia and the rest of the world
declined 10,000 units year on year to 671,000 units.
Financial Position
< Assets >
Total assets as of the end of fiscal 2004 stood at ¥1,589.3 billion,
down ¥439.7 billion from the end of the previous fiscal year.
Current assets fell ¥47.5 billion to ¥821.9 billion. This was
mainly due to declines in trade notes and accounts receivable,
and in inventories in line with lower sales, in addition to a
decrease in finance receivables associated with the restructur-
ing of U.S. sales finance operations and sale of certain finance
receivables. These declines were partly offset by an increase in
cash and cash equivalents of ¥113.0 billion due mainly to
capital increases.
Tangible fixed assets decreased ¥176.8 billion to ¥530.9
billion as of the fiscal year-end, due mainly to impairment
losses on production facilities.
Investments and other assets declined ¥217.9 billion from the
previous fiscal year-end to ¥204.3 billion. In addition to a ¥103.5
billion decline in long-term finance receivables, the company
recorded a decrease of ¥66.1 billion in investment securities.
< Liabilities >
Total liabilities as of March 31, 2005 stood at ¥1,254.3 billion,
a decrease of ¥729.0 billion from the previous fiscal year-end.
Current liabilities declined ¥709.8 billion to ¥857.3 billion,
reflecting a ¥51.4 billion decrease in trade notes and accounts
payable in line with lower sales, in addition to a decrease of
¥424.3 billion in short-term borrowings.
Long-term debt as of the fiscal year-end had declined ¥40.8
billion to ¥198.0 billion.
< Stockholders’ Equity >
At the end of the fiscal year, total stockholders’ equity
amounted to ¥324.8 billion, an increase of ¥294.8 billion.
Despite a ¥474.8 billion net loss, stockholders’ equity in-
creased due to a ¥780.2 billion increase in common stock and
capital surplus through capital increases in June and July 2004
and March 2005.
As a result, the equity ratio rose to 20.4%, a substantial
increase from the 1.5% recorded at the end of the previous
fiscal year.
Cash Flows
Net cash provided by operating activities totaled ¥13.7 billion,
a ¥15.1 billion increase in net cash flow from the previous
fiscal year. This cash was mainly provided by proceeds from the
sale of finance receivables.
Net cash used in investing activities amounted to ¥34.2
billion, ¥81.0 billion more than in the previous fiscal year, as
payments for purchases of tangible fixed assets exceeded
proceeds from sales of these assets.
Net cash provided by financing activities totaled ¥133.6
billion, ¥76.9 billion more than in the previous fiscal year. This
was mainly due to proceeds from common and preferred stock
issued and the issuance of long-term debt. These proceeds were
partly used to repay commercial paper as well as short-term
borrowings and long-term debt.
As a result, the year-end balance of cash and cash equiva-
lents amounted to ¥294.9 billion, an increase of ¥113.0 billion
from the beginning of the fiscal year.