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Performance Outlook for Fiscal Year 2009
Recover from Low Sales and Low Profit
Through Cost Reductions, Aiming for ¥30
Billion Operating Income and ¥5 Billion in
Net Income
MMC expects inventory levels to normalize within the first
half of fiscal year 2009. However, global auto market condi-
tions remain very challenging, except in China and certain
other markets. MMC forecasts a further strengthening of the
yen, lower retail sales volume and net sales in fiscal year 2009,
so MMC will not ease off on its emergency cost-cutting mea-
sures currently in place. In fact, MMC will step up rigorous
cost reductions, including labor costs, sales costs, and mate-
rial costs, aiming to achieve a positive operating income of
¥30.0 billion and a net income of ¥5.0 billion.
(100 million yen/000 units)
FY2008
Actual1
FY2009
Forecast2
Change
2–1
Net Sales 19,736 15,000 –4,736
Operating
Income 39 300 +261
Ordinary Income
(Loss) –149 150 +299
Net Income
(Loss) –549 50 +599
Sales Volume
(retail) 1,066 932 –134
Assumed Forex Rate
(Yen)
USD101
EUR144
AUD81
USD92
EUR116
AUD60
Note: Sales volume figure excludes OEM supplies.
Market Outlook for Fiscal Year 2009
Produce Cars that Meet Individual Countries’
Needs in the Midst of Increasing Concern
about the Environment and Fuel Economy
In Japan, MMC expects retail sales volume to increase as a
result of policies aimed at stimulating automobile demand,
such as the Japanese government’s subsidies for purchasing
certain new vehicles (scrap incentives, etc.). Additionally,
while MMC does not foresee a rapid recovery in retail sales
volume in Europe, the U.S., and markets in other industrial-
ized nations, MMC sees opportunities for growth in retail
sales volume in emerging markets. For example, MMC
believes the sales volume in China, where government eco-
nomic stimulus measures and policies to sustain growth have
proven successful, has the potential to increase. However, in
Russia and the Ukraine, which MMC has positioned as key
markets and where MMC is aggressively working to expand
sales, latent growth potential still looks promising, but MMC
expects market recoveries will take some time. How fast each
market’s demand will recover will differ; but MMC will con-
tinue to produce cars that meet the needs of each individual
market supported by government stimulus policy.
+261
300
39
+290
+680
+571
–570
–710
Volume/
Mix
Selling
Expenses
Forex Combined impact of
higher raw material
prices/cost reductions
Others
FY2008
Actual
(100 million yen)
FY2009
Forecast
FY2009 Results Forecast Summary (vs. FY2008 Actual) Analysis of Operating Income (vs. FY2008 Actual)
Osamu Masuko
President
05
Annual Report 2009 MITSUBISHI MOTORS CORPORATION