Mitsubishi 2014 Annual Report Download - page 16

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Establish a Stable Business Foundation
Carrying out the measures described above requires a stable
business foundation. In particular, we are concentrating on
strengthening our organization in emerging markets, conduct-
ing pioneering research to enhance product competitiveness
and developing eco-friendly and other advanced technologies.
Each year during the period of New Stage 2016, we plan to
invest an average of ¥100 billion in capital expenditure and ¥80
billion in research and development. These  gures represent
increases of 50% and 30% in comparison with our previous
mid-term business plan.
Take Action to Improve Quality
Mitsubishi Motors believes that quality is of foremost impor-
tance in ensuring that customers travel safely in the vehicles
it produces. To continue meeting customers’ expectations,
we aim to be at the top level in the industry for all aspects of
vehicle quality. The Group as a whole will focus on quality-
enhancement efforts.
Performance Targets for Fiscal 2016
Through the measures outlined above, Mitsubishi Motors plans
to further expand pro tability. Throughout the period of New
Stage 2016, we intend to put ourselves on a steady path
toward growth and achieve stable returns for shareholders.
In November 2013, when we announced New Stage 2016,
our operating performance targets for  scal 2016 were net
sales of ¥2,600 billion (compared with ¥2,093.4 billion in  scal
2013) and operating income of ¥135.0 billion (up from ¥123.4
billion). We now expect to meet our operating income target
two years ahead of time, in  scal 2014. As a result, we will
need to set new targets for  scal 2016. We are currently in the
process of revising our forecast and will announce our new
targets when ready.
Special Feature: Our New Mid-Term Business Plan, “New Stage 2016”
Aiming for the Top Quality Level in the Industry
Objectives Targets to Achieve
To provide safe and secure vehicles from a
customers’ point of view
Sustainably offer high-quality products that deliver high
customer satisfaction
To build a global quality control system
Reinforce quality control in expanding overseas
markets and production facilities
To reform manufacturing process
throughout whole value chain to improve
product quality
Build an ever-improving organization in which each
employee has great awareness of issues
Quality Targets
We will achieve the following objectives for newly
launched models:
1. Reduce the number of failures occurring
within three months of delivery by half
compared with scal 2012
2. Reduce the ratio of defective
components from suppliers by half
compared with scal 2012
3. Halve the period from any occurrence of
failure to determination of countermea-
sures compared with scal 2012
O
b
jectives Targets to Ac
h
iev
e
To
p
rovide safe and secure vehicles from a
customers’
p
oint of view
Sustainably o
ff
er high-quality products that deliver high
c
ustomer satis
f
actio
n
To
b
ui
ld
a g
l
o
b
a
l
qua
l
ity contro
l
system
Rein
f
orce qualit
y
control in expandin
g
overseas
m
arkets and production
f
acilitie
s
To reform manufacturing process
t
h
rou
gh
out w
h
o
l
e va
l
ue c
h
ain to improve
product qualit
y
Bui
ld
an ever-improvin
g
or
g
anization in w
h
ic
h
eac
h
emplo
y
ee has
g
reat awareness o
f
issue
s
Q
ua
l
it
y
Tar
g
ets
W
e will achieve the
f
ollowin
g
ob
j
ectives
f
or newl
y
l
aunc
h
e
d
mo
d
e
l
s
:
1.
R
educe the number of failures occurring
w
ithin three months of deliver
y
b
y
hal
f
compared with
scal 201
2
2.
R
educe
t
h
e
r
at
i
o
o
f
de
f
ect
iv
e
components from suppliers b
y
half
com
p
ared with scal 201
2
3.
Halve the period from an
y
occurrence of
fa
il
u
r
e
to
dete
rmin
at
i
o
n
o
f
cou
n
te
rm
ea
-
s
ures com
p
ared with scal 201
2
FY2013 (Actual) FY2016 (Targets)
Sales Volume (Retail) 1,047 1,430
Sales 2,093.4 2,600.0
Operating Income 123.4 135.0
Operating Income Ratio
5.9% 5.2%
F
Y
2
013
(
Actual
)
FY
2
016
(
Targets
)
S
a
l
es Vo
l
ume
(
Retail
)
1,
0
47
1,
430
Sa
le
s
2
,
0
93.4
2,
600.0
Op
erat
i
n
g
Income 1
2
3
.4
1
35.0
Operating Income Rati
o
5.9
%
5.
2
%
(Billions of yen, thousands of units)
MITSUBISHI MOTORS CORPORATION
Annual Report 2014
14