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MITSUBISHI MOTORS CORPORATION
Annual Report 2006
Year ended March 31, 2006

Table of contents

  • Page 1
    MITSUBISHI MOTORS CORPORATION Annual Report 2006 Year ended March 31, 2006

  • Page 2
    ... for Developing New Vehicles Basic R&D Policies Eco-friendly Product Development a Top Management Interview 2: Roadmap for Improving Sales 18 a Regional Topics Japan North America Europe Asia, ASEAN and Other Regions 24 26 28 30 Forward-looking Statements On the Cover Pajero (Montero) debuted in...

  • Page 3
    ...to discover new value in their cars, giving them a richer and more rewarding driving experience. Importance of continuity Mitsubishi Motors will continue to manufacture distinctive cars with the passion and conviction to overcome all challenges. MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006 1

  • Page 4
    ...500 0 01 02 03 04 05 06 Actual Plan (FY) Operating Income (Loss) (Â¥ billion) 90 60 30 0 -30 -60 -90 -120 -150 01 02 03 04 05 06 Actual Plan (FY) Net Income (Loss) (Â¥ billion) 100 0 -100 -200 -300 -400 -500 01 02 03 04 05 06 Actual Plan (FY) 2 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 5
    ... units) 2,000 1,500 2,000 1,500 1,000 500 500 0 0 (FY) 1,000 a OEM Plan (Nissan Motor Co., Ltd., PSA Peugeot Citroën) a Asia and Other Regions a Europe a North America a Japan 01 02 03 04 05 06 Actual Plan 01 02 03 04 05 06 Actual Plan (FY) MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006...

  • Page 6
    ... high crude oil prices and rising materials costs. Most importantly, we have yet to achieve bottom-line profitability. Nevertheless, we are committed and determined to clear each and every one of the hurdles that remain to revitalize the company. 4 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 7
    ... revitalizing the company. Also, sales volumes were strong in main European markets such as Germany and the U.K., and volumes grew briskly in Russia, the Ukraine, Central & South America, the Middle East and Africa. 2. Operating Profitability Restored As mentioned earlier, we achieved our target of...

  • Page 8
    ... targets originally laid out in the revitalization plan. Hiizu Ichikawa Managing Director in Charge of Finance Group Headquarters since June 2004. Previously with The Bank of Tokyo-Mitsubishi, Ltd. (currently The Bank of TokyoMitsubishi UFJ, Ltd.) 6 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT...

  • Page 9
    ... President of MMC since June 2005. Revitalization Promotion Officer and also in Charge of Corporate Planning, Product Strategy, Environment Affairs & Corporate Affairs Group Headquarters. Previously a director of Mitsubishi Heavy Industries, Ltd. MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006 7

  • Page 10
    ... our ability to attract customers to dealerships and enhance sales capabilities by unveiling three new models, Eclipse Spyder, Outlander and Lancer, as well as through the successive launch of special editions of models already on the market. 8 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 11
    ... entered production in August 2005, is positioned as a global strategic vehicle, and was launched in Europe as the new L200 in March 2006; it has won strong customer support. In fiscal year 2006, MMC will export three new models, Outlander, Pajero (Montero in some markets) and Lancer, from Japan to...

  • Page 12
    ... model changes for Pajero (Montero) and Delica in fiscal year 2006. Overseas, MMC will rationalize production levels at plants with excess capacity, while shipping vehicles to other regions to improve capacity utilization. The Illinois Plant of U.S. subsidiary Mitsubishi Motors North America, Inc...

  • Page 13
    ... must take responsibility for their own company, without relying on anybody else for help. Now is the time for employees across all operational units and regions to band together and rise to the challenge of achieving MMC's revitalization plan. MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006 11

  • Page 14
    .... Managing Director In Charge of Product Development Group Headquarters Tetsuro Aikawa Principal New Model Introduction Plans for Fiscal Year 2006 [Europe] New model: Triton (L200) one-ton pickup truck [Thai-made] (March 2006) New model: Colt CZC (May 2006) New model: Galant [American-made...

  • Page 15
    ... for exporting this model to markets around the world, including Europe, Australia, Central & South America, the Middle East and Africa. Regional model releases in fiscal year 2006 include the new Eclipse Spyder (U.S.), the Colt CZC cabriolet (Europe), and the new eK Wagon and Delica (Japan). All of...

  • Page 16
    ... volume in the SUV category in the second half of fiscal year 2005. This accomplishment shows that the approach MMC is taking in creating new cars has been extremely well received by customers-giving confidence that MMC is on the right track. 14 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 17
    ... quality verification activities were also conducted before shipment using volume production models. In short, i is the embodiment of MMC's enthusiasm and commitment to design and engineering. Passenger cabin Engine compartment Crushable zone MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006...

  • Page 18
    ... to meet new fuel economy standards before they come into force in Japan in 2010, as well as meet a new certification system for low-emission vehicles. In parallel, MMC is steadily working to meet overseas regulatory developments such as the tightening of CAFE standards in the United States, the...

  • Page 19
    ... to rising global demand for vehicles with better fuel economy. MMC is initiating product and development strategies which meet this market trend. In June 2006, MMC announced a joint development project with Mitsubishi Heavy Industries, Ltd. (MHI) to create 2-liter class diesel engines. The aim...

  • Page 20
    ...the U.S. market. Hiroshi Harunari President and CEO of U.S. subsidiary Mitsubishi Motors North America, Inc. (MMNA) since January 2006. Previously appointed MMC Managing Director in Charge of Overseas Operations Group Headquarters in June 2005. 18 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 21
    ... new models before launch. The success of this program has helped to restore confidence at MMC, as well as at affiliated companies and dealerships. Fujio Cho Managing Director since June 2004 In Charge of Domestic Sales Promotion Group Headquarters MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006...

  • Page 22
    ... fiscal year 2006. Three new models will be rolled out. At the same time, to maximize the benefits from these new models, MMC is taking initiatives together with sales companies to raise the number of customers visiting dealerships and to reinforce customer service. For instance, MMC is holding the...

  • Page 23
    ... of quality, and hardly any dealers felt that there were problems with products. In fact, Endeavor was recently ranked No. 1 in customer satisfaction in the premium mid-size SUV category in a survey by a U.S. market research company. Also, in the February 2006 issue of Consumer Reports, Mitsubishi...

  • Page 24
    ... important is delivering on our sales target of 138,000 units and making fiscal year 2006 the year that sales turned around. Outlander (North American specification) Concept car MITSUBISHI Concept-X (Unveiled at the 2005 Tokyo Motor Show) 22 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 25
    ... and ambitious than in the first year of the plan. We are committed to marshalling group-wide resources in automobile development, manufacturing, marketing, and after-sales services to become the company of choice for vehicles and services. MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006 23

  • Page 26
    ... Plan* (FY) * MMC revised targets for fiscal year 2006 when it released fiscal year 2005 full-year financial results on April 27, 2006. MMC's home market of Japan suffered the greatest negative impact due to past recall issues. However, numerous stakeholders, including customers and shareholders...

  • Page 27
    ...force training and is also working to improve the coaching skills of dealership managers to enable them to get the best out of staff. A team of 13 training experts has been formed to provide support to Japanese sales companies. i Lancer Evolution IX MR MITSUBISHI MOTORS CORPORATION ANNUAL REPORT...

  • Page 28
    ...year 2005 full-year financial results on April 27, 2006. With annual demand of around 17 million vehicles, the huge U.S. market assumes the same importance as Japan in the Mitsubishi Motors Revitalization Plan. MMC is working to restore sales competitiveness in the world's leading automobile market...

  • Page 29
    ...out first in the United States. Supplementing the succession of new models, MMC also plans to introduce a number of special editions of mainstay models such as Galant and Endeavor to attract new customers and boost sales. Eclipse Spyder Galant MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006 27

  • Page 30
    ...performed well in large markets such as Germany and the U.K., while continuing to steadily grow sales in the expanding markets of Russia and the Ukraine. In these two markets, MMC reported sales growth of greater than 50% year on year. Colt CZC 28 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 31
    ... Models In fiscal year 2006, MMC plans to further grow sales by aggressively rolling out new models. The company has already begun the staggered launch of the Thai made Termination of smart forfour Production for DaimlerChrysler Netherlands Car B.V. (NedCar), MMC's vehicle assembly plant in Europe...

  • Page 32
    ...Australia and other areas. This growth was expected to outweigh an anticipated drop in shipments to Malaysia-based Proton Holdings Bhd. In terms of results, MMC grew volume by 31,000 units, or 23%, in Central & South Triton (L200) (made in Thailand) 30 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT...

  • Page 33
    ... issued shares of SEM. The goal is to make SEM a key production and sales base for Mitsubishi-brand vehicles. Following this investment, SEM will produce and sell the Mitsubishi-brand Lancer, Space Wagon (Chariot Grandis in Japan), and Galant models in fiscal year 2006. The company further plans to...

  • Page 34
    ...bringing the Thai-made Triton (L200) to markets in Central & South America, the Middle East, and Africa. MMC also plans to launch the European-made Colt in the South African market and the American-made Galant in markets in the Middle East. 380 32 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 35
    ...) 99.8% 100% 51% 94.7% 0% 32.3% 0% 25% 0% 0% â- Local production (vehicles) â- Local production (engines/transmissions) â- Import and sales of finished vehicles (regional sales company) *Equity investment of 25% planned for fiscal year 2006. MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006 33

  • Page 36
    ... targets D Approval of final specification model C Validation of prototype B Completion of development A Approval of volume production (Final Quality Approval Committee) Z Follow-up for six months after launch Quality Gate 34 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 37
    ... the technical aftersales service network of sales companies • Continue training seminars on "Mitsubishi Standard Customer Service Style" • Improve Mitsubishi technical after-sales service certification systems • Implement action program for observing corporate ethics • Hold Business Ethics...

  • Page 38
    ... Plant will move from one to two-shift production. MMC subsidiary Pajero Manufacturing Co., Ltd. (PMC) will also resume two-shift production from the second half of fiscal year 2006 with the planned launch of the new Pajero (Montero) and Delica models this fiscal year. MMC's production departments...

  • Page 39
    ...signed various agreements to (1) terminate smart forfour production at NedCar at the end of June 2006; and to (2) transfer to DC MMC's entire shareholding in MDC Power GmbH, a 50-50 Germany-based joint venture engine plant between the two companies. MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006...

  • Page 40
    ...fiscal year 2005. Plans call for expanding these programs to a total of 46 suppliers Managing Director In Charge of Global Procurement Group Headquarters Corporate General Manager of Procurement Office Four Material Cost Reduction Themes In fiscal year 2006, the second year of the Mitsubishi Motors...

  • Page 41
    ...its findings to senior management and also reports to the Business Ethics Committee twice per year. The Internal Audit Department, which had 15 employees at the end of March 2006, conducts regular company-wide audits to check the appropriateness of business processes, including those of subsidiaries...

  • Page 42
    ... Managing Directors meetings Executive Vice President (Revitalization Promotion Officer) Guidance and advice Quality Affairs Office Quality audit CSR Promotion Office Internal audit Each Business Unit Internal audit Subsidiaries and Affiliates (in Japan and overseas) 40 MITSUBISHI MOTORS...

  • Page 43
    ... Corporation (MMC business partner) Chairman, The Bank of Tokyo-Mitsubishi UFJ, Ltd. (major MMC shareholder) Managing Director, Mitsubishi Heavy Industries, Ltd. (main MMC shareholder) Representative Director, Okamoto Associates • Ensure the proper execution of group-wide business operations...

  • Page 44
    ... business ethics Consult on ethical issues Help Line/Employee Counseling Office Various consultations Various consultations Employees of Subsidiaries and Dealers, Temporary Employees, Former Employees Employees with MMC Employment Agreements 42 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 45
    ... message will help to make compliance a more familiar concept. I congratulate MMC on restoring operating profitability in fiscal year 2005, the first fiscal year of the Mitsubishi Motors Revitalization Plan. In fiscal year 2006, a crucial year for the company, I hope that all employees will continue...

  • Page 46
    ... Office Domestic Sales Office Overseas Business Management Office Europe Office Overseas Operations Group Headquarters North Asia Office Asia & ASEAN Office Oceania, Latin America, Middle East and Africa Office Board of Statutory Auditors 44 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 47
    ... & CEO - Mitsubishi Motors North America, Inc. Tetsuro Aikawa Managing Director In Charge of Product Development Group Headquarters Mitsuo Hashimoto Managing Director In Charge of Quality Affairs & Technical Aftersales Service Group Headquarters Corporate General Manager of Quality Affairs Office...

  • Page 48
    ...rate and achieve the required rate before relevant legislation comes into force in 2015. * End-of-life vehicles are disassembled into their smallest metal parts, which are then fed through a press to provide raw material for manufacturing steel. 46 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 49
    ... of new models. Prevention of Global Warming • MMC achieved an overall fleet average fuel economy of 15.5 km/L for its gasoline cars in Japan in fiscal year 2005, a 28% improvement over the average for fiscal year 1990. This improvement stemmed in part from the revamping of the car engine family...

  • Page 50
    ... 52 54 55 56 57 85 Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Stockholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Independent Auditors 48 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 51
    ... the Finance Group Headquarters The first fiscal year of the Mitsubishi Motors Revitalization Plan ended on March 31, 2006. Despite difficult conditions in North America, Australia and other regions, MMC is starting to see positive signs overall, such as increased sales in Japan, Europe, the Middle...

  • Page 52
    ... growth driven by two new models launched in Japan in fiscal year 2005. a Financial Services Mitsubishi Auto Credit-Lease Corporation (MCL) and U.S.-based Mitsubishi Motors Credit of America, Inc. (MMCA) conduct auto leasing, sales financing and related operations. MMC holds an equity interest in...

  • Page 53
    ...Discussion a North America In North America, retail sales declined 18,000 units, 10.3% year on year, to 156,000 units. This decrease mainly reflected the impact of damage to the Mitsubishi brand caused by past over-ambitious sales strategies, problems related to the launch timing for the new Raider...

  • Page 54
    ...plant and equipment, net (Notes 8 and 11) 506,007 530,903 4,307,548 Intangible assets 25,836 32,107 219,941 Investments and other assets: Investments (Notes 9 and 11) Long-term finance receivables (Notes 6 and 11) Long-term... $13,259,301 52 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 55
    ...dollars (Note 5) 2006 Liabilities, minority interest and stockholders' equity Current liabilities: Trade notes and accounts payable Short-term borrowings (Note 11) Current portion of long-term debt (Note 11) Accrued expenses, accounts payable and deferred income (Note 10) Accrued income taxes (Note...

  • Page 56
    ... Statements of Operations Mitsubishi Motors Corporation and Consolidated Subsidiaries For the years ended March 31, 2006 and 2005 In millions of yen 2006 2005 In thousands of U.S. dollars (Note 5) 2006 Net sales Cost of sales Reversal of deferred profit on installment sales, net Gross profit...

  • Page 57
    ... Consolidated Statements of Stockholders' Equity Mitsubishi Motors Corporation and Consolidated Subsidiaries For the years ended March 31, 2006 and 2005 In millions of yen 2006 2005 In thousands of U.S. dollars (Note 5) 2006 Preferred stock: Balance at beginning of year Preferred stock issued...

  • Page 58
    ... Statements of Cash Flows Mitsubishi Motors Corporation and Consolidated Subsidiaries For the years ended March 31, 2006 and 2005 In millions of yen 2006 2005 In thousands of U.S. dollars (Note 5) 2006 Operating activities: Net loss Adjustments to reconcile net loss to net cash provided...

  • Page 59
    ... customer trust; and across the board compliance. The new measures were in response to a marked slump in domestic sales that surfaced following the recall problems at MMC and Mitsubishi Fuso Truck and Bus Corporation. After announcing its "Business Revitalization Plan" in May 2004, the MMC group...

  • Page 60
    ... under which the MMC group will cut back the number of low volume models produced for individual markets and concentrate managerial resources on highly competitive global market models. This will raise development and production efficiencies. 58 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 61
    ... operations in Indonesia. The MMC group is also strengthening its production base by boosting capacity in Thailand, which serves as an export hub to global markets. As for Australia, the MMC group closed its engine plant in August 2005. MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006 59

  • Page 62
    ... Bank of Tokyo-Mitsubishi UFJ, Ltd. was approximately 34% at March 31, 2006. Following MHI's conversion of its preferred stock, which made its holdings in MMC more than 15%, MMC became an equity method affiliate of MHI in the second half of FY2005. 60 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT...

  • Page 63
    ... the board, is devoting itself to materializing the new "Mitsubishi Motors Revitalization Plan" that was announced in January 2005 with full support of three Mitsubishi companies (MHI, Mitsubishi Corporation and The Bank of Tokyo-Mitsubishi UFJ, Ltd.). Accordingly, these financial statements have...

  • Page 64
    ... accounts. (h) Allowance for product warranties The allowance for product warranty claims has been calculated based on MMC and its consolidated subsidiaries' historical experience and estimations with respect to future costs relating to claims. 62 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 65
    Notes to Consolidated Financial Statements ( i ) Retirement benefits Accrued retirement benefits for employees at March 31, 2006 and 2005 are calculated based on the retirement benefits obligation and the fair value of the pension plan assets estimated at year end. The full amount of the transition...

  • Page 66
    ... No. 7 March 16, 2005) have been adopted. The effect of the adoption of this change in accounting policy for retirement benefits was insignificant in net loss of fiscal year 2005. The effects on the segment information are stated in Note 21. 64 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 67
    ... plant and equipment, net ¥ 105,038 320,919 1,319,823 20,732 1,766,514 (1,260,506) ¥ 127,449 332,613 1,350,483 34,964 1,845,511 (1,314,608) $ 894,176 2,731,927 11,235,407 176,490 15,038,002 (10,730,453) $ 4,307,548 ¥ 506,007 ¥ 530,903 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006...

  • Page 68
    ...: Assets used in production are grouped either by manufacturing plants or operational site. Assets used in sales operations are generally grouped by operational site. Assets leased to others and idle assets have their own asset groups. As a result of the previously listed factors that cast doubt...

  • Page 69
    ... of U.S. dollars 2006 Accrued expenses and accounts payable Allowance for product warranties Deferred income Accrued bonuses ¥181,553 49,589 3,856 - ¥234,998 ¥175,734 49,859 22,783 5,516 ¥253,893 $1,545,528 422,143 32,827 - $2,000,498 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006 67

  • Page 70
    ... FY2005 because of a change in the internal rules for the period covered. MMC's consolidated subsidiaries in Japan accrued total ¥5,021 million for employees' bonuses in FY2004. 11. Short-Term Borrowings and Long-Term Debt Short-term borrowings at March 31, 2006 and 2005 consisted of the following...

  • Page 71
    ...term lease contract of building with Murata Medical Services, Ltd. The following groups of assets of the parent company, the Okazaki factory, were pledged as collateral at March 31, 2006. In millions of yen 2006 2005 In thousands of U.S. dollars 2006 Buildings and structures Machinery and equipment...

  • Page 72
    ... at March 31, 2006 and 2005, respectively. In millions of yen 2006 2005 In thousands of U.S. dollars 2006 Buildings and structures Machinery and equipment Land ¥1,053 1,248 194 ¥2,496 ¥1,123 944 194 ¥2,261 $ 8,966 10,628 1,655 $21,250 70 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 73
    ... holding gain on securities and derivative financial instruments is not available for dividends. MMC is authorized to issue 3,312,000 shares of convertible preferred stock that are classified as Series A, B and G (3 to 4 times in each series), and has 442,593 shares outstanding at March 31, 2006...

  • Page 74
    ... years ended March 31, 2006 and 2005 consisted of the following: In millions of yen 2006 2005 In thousands of U.S. dollars 2006 Gain on sales of investments in securities Gain (loss) on sales and disposal of property, plant and equipment and intangible assets Income (loss) from affiliated companies...

  • Page 75
    ... dollars 2006 Lease payment expense Reversal of impairment provisions relating to leased assets Notional depreciation expense Notional interest expense Impairment loss ¥9,570 12 8,747 498 38 ¥10,156 - 8,483 522 - $81,471 107 74,463 4,243 325 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006...

  • Page 76
    ...-floating/receive-fixed) are exposed to risk of future interest rate fluctuations. MMC and consolidated subsidiaries do not enter into derivative contracts for which significant volatility would have any significant influence on its operations. 74 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 77
    ...Consolidated Financial Statements (c) Control MMC does not enter into derivative contracts for trading purposes or on the anticipation of gains from short-term market movements. Derivative transactions are appropriately pre-approved by Managing Directors in charge of Finance Group Headquarters. MMC...

  • Page 78
    ...008 $1,542 $1,542 (261) (261) $1,280 Included in interest rate swaps above, are contracts with maturities over one year with notional amounts of ¥283 million ($2,410 thousand) and ¥103,008 million as at March 31, 2006 and 2005, respectively. 76 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 79
    ... amortized using the straight line method over the periods of 5 to 21 years and 10 to 21 years for the years ended March 31, 2006 and 2005, respectively. These periods are within the estimated average remaining service years of the employees. MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006 77

  • Page 80
    ... taxable income. Income taxes of the foreign consolidated subsidiaries are generally calculated based on the tax rates applicable in their countries of incorporation. The consolidated tax payment system is applied at March 31, 2006 and 2005. 78 MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006

  • Page 81
    ... 2006 Current assets Investments and other assets Current liabilities Non-current liabilities Net deferred tax assets ¥ 1,206 7,413 (86) (18,251) ¥ (9,716) ¥ 1,799 6,730 (100) (17,357) ¥ (8,927) $ 10,270 63,113 (733) (155,367) $ (82,716) MITSUBISHI MOTORS CORPORATION ANNUAL REPORT 2006...

  • Page 82
    ...The business segment information for MMC and its consolidated subsidiaries for the years ended March 31, 2006 and 2005 are summarized as follows: In millions of yen 2006 2005 In thousands of U.S. dollars 2006 Net sales: Automobiles Financial services Total Intersegment Consolidated Operating income...

  • Page 83
    ... mutual relevance of business activities. 2. Main countries and regions outside Japan are grouped as follows: (1) North America ...United States, Puerto Rico (2) Europe ...The Netherlands, Italy, Germany (3) Asia ...Thailand, Malaysia, Taiwan (4) Other ...Australia, New Zealand, U.A.E. 3. Changes in...

  • Page 84
    ... relevance of business activities. 2. Main countries and regions outside Japan are grouped as follows; (1) North America ...United States, Puerto Rico (2) Europe ...The Netherlands, Italy, Germany (3) Asia ...Thailand, Malaysia, Taiwan (4) Other ...Australia, New Zealand, U.A.E 3. Overseas sales are...

  • Page 85
    ... voting stock held: Concurrent board appointment: Business relationship: Main stockholder DaimlerChrysler AG Stuttgart, Germany Euro 2,649 million Manufacturing and sales of passenger cars and other transportation equipment - - International alliances for research, development, production, sales and...

  • Page 86
    ... million Manufacturing and sales of passenger cars and other transportation equipment Direct 12.9 1 management board member International alliances for research, development, production, sales and similar for passenger cars Loss compensation based on Mitsubishi Fuso Truck and Bus Corporation stock...

  • Page 87
    ... of Mitsubishi Motors Corporation (the "Company") and consolidated subsidiaries as of March 31, 2006 and 2005, and the related consolidated statements of operations, stockholders' equity, and cash flows for the years then ended, all expressed in yen. These financial statements are the responsibility...

  • Page 88
    ..., 2006) CONSOLIDATED SUBSIDIARIES IN JAPAN Company Capitalization (In millions of yen) Business Lines MMC Share of Voting Rights (%)* Hokkaido Mitsubishi Motors Sales Co., Ltd. Sapporo Mitsubishi Motors Sales Co., Ltd. Iwamizawa Mitsubishi Motors Sales Co., Ltd. Sorachi Mitsubishi Motors Sales Co...

  • Page 89
    ...25.0 P.T. Mitsubishi Krama Yudha Motors & Manufacturing Indonesia Note: MMC has 10 other equity method affiliates outside Japan in addition to the above. OTHER ASSOCIATED COMPANIES Company Mitsubishi Heavy Industries, Ltd. Capitalization (In millions of yen) 265,608 Business Lines Share of Voting...

  • Page 90
    ... Major Shareholders Name 5,491,452,544 73,000 30,000 1,000 130,000 168,393 10,200 30,000 5,491,895,137 427,395 4 8 1 2 3 1 1 427,415 Number of shares held (thousands) % of total Mitsubishi Heavy Industries, Ltd. Mitsubishi Corporation The Bank of Tokyo-Mitsubishi UFJ, Ltd. The Master Trust Bank...

  • Page 91
    Principal Plants ቨ Vehicle assembly plant Powertrain plant Country/Region Japan Name Major Products Colt, Colt Plus, Grandis Outlander, Lancer, i, eK Wagon, Minicab Pajero (Montero) Engines Engines Engines, transmissions Eclipse, Galant, Endeavor, Eclipse Spyder Colt (European model) ...

  • Page 92
    MITSUBISHI MOTORS CORPORATION 2-16-4, Konan, Minato-ku, Tokyo 108-8410, Japan (Scheduled to relocate to 5-33-8, Shiba, Minato-ku, Tokyo in January 2007) Public Relations Department Tel: +81-3-6719-4206 (IR) +81-3-6719-4274 (Corporate PR) Fax: +81-3-6719-0059 http://www.mitsubishi-motors.com Printed ...