Mitsubishi 2011 Annual Report Download - page 24

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Net Sales
0
200
400
600
800
1,000
2011
(Forecast)(FY)
2010200920082007
(Billions of yen)
859.3
711.3
632.5
785.4
880.0
(FY)
Operating Income
(Billions of yen)
0
20
40
60
80
100
65.6
53.3
42.5
93.0
89.5
2011
(Forecast)
2010200920082007
Sales Volume (Retail)
(Thousands of units)
0
150
300
450
600
750
n Previous calculation method n New calculation method
640
507 532 576
511
629
(FY)
2011
(Target)
2010200920082007
Performance in  scal 2010
A breakdown of sales volume by country or market is as follows: Overall demand
in China continued to expand, buoying sales of both locally produced vehicles and
imports. As a result, retail sales volume in China was up approximately 20% year
on year, to 168,000 units. Sales volume doubled in Thailand, and sales volumes of
the Triton and the Pajero Sport—mainstay SUVs—were up in Indonesia, the Philip-
pines and Malaysia, resulting in a year-on-year increase of approximately 60% in the
ASEAN market. Sales volumes in Australia and New Zealand were each up around
10% year on year. Sales volume was also up more than 20% in Central and South
America, owing to sales growth in Brazil, the region’s largest market. As a result, the
overall retail sales volume for Asia and Other Regions came to 629,000 units (previ-
ous calculation method*1), up 97,000 units, or 18%, from the preceding fiscal year.
Net sales rose ¥152.9 billion, or 24%, year on year, to ¥785.4 billion, due to the
increase in sales volume. Operating income expanded ¥47.0 billion year on year, to
¥89.5 billion, benefiting from higher sales volume and cost reductions.
Outlook for  scal 2011
In China, MMC, in collaboration with Guangzhou Automobile Group, is proceeding
with plans to make GAC Changfeng Motor a 50–50 joint venture. In calendar 2011,
MMC plans to establish a new subsidiary in China, aiming to expand its
locally produced lineup. In autumn 2011, MMC plans to introduce the Pajero Sport in
China, thereby rounding out MMC’s popular SUV lineup there. In Thailand, MMC will
increase production of the Triton, its core one-ton pickup truck, and the Pajero Sport
SUV, in response to increased domestic as well as international demand. Construction
is proceeding as planned at MMC’s third factory in Thailand, where MMC plans to
begin manufacturing the “Global Small” in March 2012, initially for launch in Thailand.
With an eye on increasing production and sales in the expanding Brazilian market,
MMC intends to launch new models and strengthen collaboration with local partners.
Pushed up by robust growth in ASEAN and other markets, MMC anticipates a
sales volume for Asia and Other Regions of 576,000 vehicles (new calculation meth-
od*2), up 65,000 units, or 13%, from the fiscal 2010 level. In line with this increase
in sales volume, MMC anticipates a ¥94.6 billion, or 12%, year-on-year increase in
net sales, to ¥880.0 billion. Even factoring in MMC’s increase in R&D and indirect
labor expenditures towards future growth in the region, MMC still expects operating
income for Asia and Other Regions to increase ¥3.5 billion, or 4%, year on year, to
¥93.0 billion, spurred by a rise in sales volume and an improved product mix. MMC
expects Asia and Other Regions to remain a key pillar of its earnings and profits,
with the burgeoning ASEAN market a core driver of profitability.
Asia and Other Regions
We aim to continue substantial increases in sales volume, with ongoing
expansion centered on emerging markets. We will also move forward with
the construction of our third factory in Thailand and initiatives to build up
our production and sales networks in emerging markets.
Fumio Kuwayama
Executive Of cer,
Head Of cer of the Headquarters,
Overseas Operations Group
Headquarters B
Overview of Operations by Region
Hiroshi Harunari
Executive Vice President (Representative Director), Head Officer of the Headquarters,
Overseas Operations Group Headquarters A, Corporate General Manager of
Overseas Business Management Office, In Charge of Overseas Operations Group
Headquarters B, In Charge of Global After Sales Group Headquarters
*1 Includes retail units designed by MMC and sold by
other manufacturers under their brand name that
provided royalty income (OEM).
*2 IInitiated in fiscal 2011, this includes only MMC-
branded units.
MITSUBISHI MOTORS CORPORATION
Annual Report 2011
22