Mitsubishi 2009 Annual Report Download - page 21

0 200
09
08
07
06
530.0
711.3
859.3
610.5
400 800 1,000
600
(Forecast)
0 20
09
08
07
06
38.0
53.3
65.6
40.8
30 70
5010 40 60
(Forecast)
0 200
09
08
07
06
432
507
628
537
300 700
500100 400 600
(Forecast)
Net Sales
Operating Income
Retail Sales
(FY)
(FY)
(FY)
(¥ billion)
(¥ billion)
(Thousand units)
* Puerto Rico’s results have been classified under “Asia and Other Regions” from 2008.
The Lancer (Japanese name: Galant Fortis) is being offered
in various regional markets.
Fiscal Year 2008 Performance
Retail Sales
Retail sales dropped 21% year on year to 507,000 units. MMC
achieved growth of around 20% year on year in the markets of
Brazil, Indonesia, the Philippines and elsewhere, but retail sales
in other regions declined in line with the economic recession.
Sales in Malaysia declined sharply, but this was due to the end
of production parts supplies to Perusahaan Otomobil Nasional
Sdn. Bhd. (Proton).
Net Sales and Operating Income (Loss)
Reflecting lower retail sales and the impact of the stronger yen,
net sales in Asia and other regions fell 17% year on year to
¥711.3 billion. MMC implemented emergency cost reductions
and benefited from restructuring, such as the closure of the
Australian factory. However, these positive factors were out-
weighed by the large impact of the drop in sales and the yen’s
appreciation. Consequently, operating income declined 19%
year on year to ¥53.3 billion.
Outlook for Fiscal Year 2009
Retail Sales
MMC is targeting retail sales of 432,000 units, down 15% from
fiscal year 2008, based on challenging market environments in
various nations in Asia and other regions. While there are differ-
ences in the degree of impact and seriousness of the economic
slowdown in various regions, MMC will conduct sales activities
while closely monitoring market developments in each region.
Net Sales and Operating Income
MMC is targeting net sales in Asia and other regions of ¥530.0
billion, down 25% year on year, mainly based on a projected drop
in sales. MMC is taking steps to reduce materials costs and other
expenses, such as personnel costs and selling expenses, includ-
ing advertising costs. However, MMC expects operating income
to deteriorate ¥15.3 billion year on year to ¥38.0 billion based on
projected lower sales and other factors.
MMC is generating stable earnings from its strong bases in Asia, ASEAN, the Middle East, and
Africa. Despite challenging sales environments, MMC continues to push ahead with the laying of
foundations in emerging markets, including China, Brazil, the Middle East, and Africa.
Asia and Other Regions
• Bolstering Sales Structures in the Key Markets of China,
the Middle East, and Africa
In China, MMC established Mitsubishi Motor Sales (China) Co.,
Ltd. (MMSCN), a company for selling imported built-up vehicles
through a joint venture with Mitsubishi Corporation, with oper-
ations starting on April 1, 2009. Looking ahead, MMSCN will
concentrate on strengthening marketing, further improving
relationships with dealers, accelerating parts supply, and
enhancing after-sales services to boost customer satisfaction.
MMC also established Mitsubishi Motors Middle East &
Africa FZE. This new company is centrally overseeing sales,
marketing, parts, R&D, and service/training functions in the
Middle Eastern and African markets and is providing compre-
hensive support to local distributors.
• Deploying New Technologies Tuned to the Characteristics
of Regional Markets
MMC is rolling out its eco-friendly technologies in accordance
with the needs of each region, through the expansion of the
flex-fuel vehicle (FFV) lineup to the new Lancer in Thailand, and
to SUVs and pickup trucks in Brazil, among other initiatives.
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Annual Report 2009 MITSUBISHI MOTORS CORPORATION