Mitsubishi 2010 Annual Report Download - page 7

(¥ billion, units)
FY2008 Results 1FY2009 Results 2Change 2–1
Net Sales 1,973.6 1,445.6 -528.0
Operating Income 3.9 13.9 10.0
Ordinary Income (Loss) -14.9 13.0 27.9
Net Income (Loss) -54.9 4.8 59.7
Sales Volume (Retail) 106.6 96.0 -10.6
Note: Sales volume figures exclude OEM supplies.
FY2009 Results Summary (vs. FY2008)
Fiscal Year
2008 Onward
Fiscal Year
2009
Step Up 2010 Mid-Term Business Plan Enhanced
—After weathering the economic crisis
The Step Up 2010 mid-term business plan positions the three-year period from fiscal year 2008 through fiscal year
2010 as a period to build the foundations for growth, and to this end we have been taking steps to bolster our
strengths and secure steady profits. The economic crisis which materialized immediately following the launch of the
mid-term business plan left us no choice but to revise our performance targets (see Page 8). However, as we imple-
mented emergency measures, such as cutting costs and carefully scrutinizing investments, we effectively utilized
our finite management resources to begin steadily executing our key strategies, such as enhancing our products
and addressing environmental issues, which comprise the core of the mid-term business plan.
In terms of enhancing our products, we leveraged MMC’s strengths to launch new vehicle models, such as the
Pajero Sport, the i-MiEV, and the RVR (ASX or Outlander Sport in some markets). In terms of environmental tech-
nology, we began mass producing electric vehicles, developing a clean diesel engine, and launching new technolo-
gies including automated manual transmission and flexible fuel vehicles (FFVs), helping to build the foundations for
growth. Moreover, we enhanced our sales strategy by positioning key emerging countries as important markets,
and given the recovery in demand that has materialized since last year we are confident that this strategy will lead
to an increase in retail sales volume.
Furthermore, we have already begun to collaborate with PSA Peugeot Citroën on OEM supply of three models,
and on local production in Russia. We are actively pushing forward with business collaborations which benefit both
sides as we look to expand business tie-ups.
Return to Net Profitability, Target Achieved
— Countering the decline in sales and impact of the yen’s appreciation by cutting expenses and
reducing costs
In fiscal 2009, the global economy emerged from the depths of the turmoil that had plagued it for more than a
year and headed towards a mild recovery, backed by economic stimulus measures enacted by governments
throughout the world. However, a strong recovery in automobile demand remained far off as the surrounding busi-
ness climate remained harsh. Amid this environment, we took steps to optimize inventories and accelerate ship-
ments to recovering markets. Despite the decline in net sales, thorough expense reduction efforts helped us to
exceed the previous fiscal year in all income levels and to return to profitability on a net income basis, which was
our target for the fiscal year.
Retail sales volume dropped 106,000 units, or 10% year on year, to 960,000 units. Reflecting lower sales
volume and the appreciation of the yen, among other factors, net sales fell ¥528.0 billion, or 27% year on year, to
¥1,445.6 billion. Operating income rose ¥10.0 billion year on year, to ¥13.9 billion, due to thorough expense-
cutting measures first enacted in the latter half of the previous fiscal year as a part of emergency measures in
response to the unprecedented economic crisis and carried through into fiscal 2009. Ordinary income increased
¥27.9 billion year on year, to ¥13.0 billion. This was due to the rebound in operating income as well as the ¥17.9
billion upturn in non-operating income such as foreign exchange gains and equity method investment gains. Net
income increased ¥59.7 billion year on year, to ¥4.8 billion, due to the ¥27.9 billion rebound in ordinary income as
well as the significant decline in extraordinary impairment losses.
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MITSUBISHI MOTORS CORPORATION Annual Report 2010