Mitsubishi 2015 Annual Report Download - page 13

Message from the Director in Charge of Corporate Planning & Finance
New test course at Mitsubishi Motors (Thailand) Groundbreaking ceremony at our new plant in Indonesia
Maintaining and Increasing Investment in Line with
Our Growth Strategy
Capital Expenditures
0
50
100
150
2016
(Target)
2015
(Target)
2014
(Actual)
(Billions of yen)
(FY) (FY)
(Billions of yen)
68.0
105.0 100.0
R&D Expenditures
0
50
100
150
2016
(Target)
2015
(Target)
2014
(Actual)
74.6 82.0 84.5
MITSUBISHI MOTORS CORPORATION
Annual Report 2015 11
In  scal 2014, Mitsubishi Motors generated approximately ¥180.0
billion in cash  ow from operating activities. This high level was
thanks to the Company’s highest levels of pro ts to date.
First of all, we will apply this cash toward investments to real-
ize sustainable growth and enhanced corporate value through ini-
tiatives to reinforce and expand our business foundation. In  scal
2014, we channeled capital expenditures of approximately ¥70.0
billion to Thailand, to augment and update production facilities
and in relation to new products, including a new model launch.
From  scal 2015, we plan to increase capital expenditures by
around ¥100.0 billion per year. These funds will go toward new
products and reinforcing our production and sales structures in
emerging markets. In addition, we will invest in new test research
facilities for the development of future technologies, such as a test
course in Thailand and an environmental test building in Japan.
Separately from the capital expenditures mentioned above, we
have embarked on the construction of a new plant in Indonesia
as part of our emerging market strategy. Over the next two years,
we expect to invest approximately ¥30.0 billion for this plant.
In  scal 2014, our R&D expenditures amounted to around
¥75.0 billion. As the upfront development of various core
technologies, including eco-car and safety technologies, has
become of increasing importance in new-car development, we
will expand our initiatives in this area.
Financially, we are strengthening shareholders’ equity and
curtailing interest-bearing debt. As a result, as of March 31, 2015,
our shareholders’ equity ratio was 41.6%, an improvement from
We are proactively making focused investments in
emerging markets, on enhancing product attractive-
ness and environmental initiatives.
Yutaka Tabata
Managing Director, Head Of cer of the Headquarters,
Corporate Planning & Finance Group Headquarters
the 35.0% recorded a year earlier. As the automobile industry is
susceptible to exchange rate  uctuations as well as the external
environment, we will continue working to strengthen our  nan-
cial base and are targeting a shareholders’ equity ratio of 50%.
We recognize the return of pro ts to shareholders as one
of our topmost management priorities going forward. In  scal
2014, we did not award a special dividend commemorating our
resumption of dividends as we had in the preceding  scal year,
but we raised the regular dividend by ¥1 per share, to ¥16.
The Company has made the stable return of pro ts to
shareholders one of its key principles going forward. Accord-
ingly, we will consider expanding dividend levels further, while
taking into overall account such factors as cash  ow, operating
performance trends, the status of growth strategy implementa-
tion and the need to reinforce our  nancial base.