Mitsubishi 2012 Annual Report Download - page 31

Operational Review
During fiscal 2011, ended March 31, 2012, the business
environment surrounding the automobile industry remained
extremely problematic. Although we were able to restore our
production momentum more quickly than initially expected
after the sharp falloff following the Great East Japan Earthquake
and nuclear accident, production activities were again disrupted
by major flooding in Thailand. In addition, in Japan we faced
historically high rates of ongoing yen appreciation, as well as
electricity shortages. Overseas, the Greek debt crisis ballooned
into a European crisis, affecting international financial markets
and causing business confidence to deteriorate sharply.
Fiscal 2011 was the first year for “Jump 2013,” the Mitsubishi
Motors Group’s mid-term business plan, but by the time of
implementation the operating environment had worsened
compared with conditions at the time the plan was formulated.
Nevertheless, the Group strengthened its resolve to reach
unchanged performance targets. Aiming to realize the objective
of “Growth and Leap Forward,” the basic policy of “Jump
2013,” we worked earnestly on our emerging market and
environmental initiatives and strove to raise profitability.
Results of Operations
During the year, sales volume (retail) rose 14,000 vehicles, or
1% year on year, to 1,001,000 units.
By geographic region, the sales volume in Japan amounted to
152,000 vehicles, down 12,000 units, or 7%. Although sales
of registered vehicles was up, stimulated by the reintroduction
of eco-car incentives, minicar sales fell. In North America, the
sales volume rose 12,000 units, or 13%, to 106,000 units. This
increase stemmed from higher sales in the United States, due
to favorable response in North America to the Outlander Sport
(RVR in Japan). Sales volume in Europe was essentially un-
changed year on year, at 218,000 vehicles. Although sales were
down in Western Europe due to decelerating demand, sales
growth in Russia was robust, owing to the ongoing recovery
of this market. In Asia and Other Regions, overall sales volume
rose 14,000 vehicles, or 3%, to 525,000 units. These results
reflected strong performance in Thailand, Indonesia and other
countries in the ASEAN region, as well as in Central and South
America, including Brazil.
Net Sales and Income
Net sales fell ¥21.2 billion, or 1% during the year, to ¥1,807.3
billion, as a consequence of lower wholesale volume and the
impact of yen appreciation. Although yen appreciation also
had a negative effect on operating income, improvements in
the product mix and efforts to hold down raw materials and
other costs led to an increase of ¥23.4 billion, or 58%, to ¥63.7
billion. Income before income taxes and minority interests
grew ¥11.2 billion, or 37%, to ¥41.6 billion, and net income
expanded ¥8.3 billion, or 53%, to ¥23.9 billion.
Business Segment Information
• Automobiles
Sales in the automotive business sector came to ¥1,797.0 bil-
lion, a decrease of ¥20.9 billion, or 1%. Segment income rose
¥22.5 billion, to ¥60.3 billion.
• Financial Services
Sales in the financial services sector amounted to ¥10.4 billion,
down ¥0.4 billion, or 4%, year on year. Segment income,
however, increased ¥0.8 billion, to ¥3.5 billion.
20112010
Japan
(Thousands of units)
(FY)
Registered
Vehicles
Minicars
164
104
60
91
61
152
FY2011 Regional Sales Volume (Retail)
(Thousands of units)
(FY)
20112010
North America
United
States
Canada &
Mexico
94
62
32
106
75
31
(Thousands of units)
(FY)
20112010
Asia and Other Regions
North Asia
ASEAN
Australia
& NZ
Central and
South America
Middle East
& Africa
511
94
102
85
68
162
525
66
93
67
200
99
(Thousands of units)
(FY)
20112010
Europe
Western
Europe
Central
Europe
Russia &
others
218
64
32
122
218
83
26
109
MITSUBISHI MOTORS CORPORATION
Annual Report 2012 29
Financial Results and Discussion