Date: Nov. 14, 2001

II. Consolidated results

1. FY2001 first half results: overview

In Japan, while personal consumption retained a firm undertone, the economy showed signs of deteriorating as exports and capital investment - normally the prime movers in an economic recovery turned downward.

In the Japanese automotive industry, the introduction of new models by Japanese automobile manufacturers kept first-half domestic market sales volume approximately on a level with the same period in the previous year. Total vehicle sales were 2,810,000 units, with domestically produced vehicle sales at 2,670,000 units (unchanged from same period for previous year) and import sales at 140,000 units (unchanged). Exports, however, were impacted by the sluggish condition of the world economy and dropped 8 percent over the same period in the previous year to 2,080,000 units.

In this market environment, the Company has been confidently implementing the Turnaround, under which it has launched a new management structure and corporate organization, streamlined payroll, cut fixed and material costs, introduced the Quality Gate system to improve quality levels, streamlined production capacity and the product portfolio, and focused on core business lines.

In its consolidated operations in the first half of fiscal 2001, MMC reports total sales volume of 658,000 units, a 2.5% decrease on the same period in fiscal 2000, mainly due to the drop in domestic passenger car sales. Consolidated sales were 1,532.6 billion yen, a 0.6% decrease over fiscal 2000.

In terms of profits, MMC reports an operating loss of 13.1 billion yen, an ordinary loss of 27.4 billion yen and a net loss of 31.5 billion yen for the first half of fiscal 2001.

Looking at cash flows: operating activities resulted in a net outlay of 12.8 billion yen. Net cash used in acquisition or disposal of tangible fixed assets and other investing activities was 14.1 billion yen. Net cash used in financial activities was 2.6 billion yen. The balance of cash and cash equivalents at the end of the first half of fiscal 2001 was 91.9 billion yen, a decrease of 37.8 billion yen over fiscal 2000.

2. Segment information

Revenues from the financial services business were 51.3 billion yen, producing an operating loss of 2.2 million yen.

(2) Geographical Segments
Sales in Japan in the first half of fiscal 2001 were 1,067.5 billion yen, a decrease of 137.7 billion yen over the same period in fiscal 2000. Operating loss was 9.5 billion yen, an improvement of 9.8 billion yen.

Sales in North America were 399.1 billion yen, a decrease of 13.1 billion yen over the same period in fiscal 2000. Operating income stood at 12.8 billion yen, a decrease of 8.2 billion yen.

Sales in Europe were 279.6 billion yen, an increase of 101.2 billion yen over the same period in fiscal 2000. Operating loss was 10.7 billion yen, an improvement of 2.6 billion yen.

Sales in Asia were 72.8 billion yen, an increase of 8.5 billion yen over the same period in fiscal 2000. Operating loss was 500 million yen, an improvement of 4.3 billion yen.

Sales in other regions were 108.5 billion yen, an increase of 6.1 billion yen over the same period in fiscal 2000. Operating loss was 600 million yen, an improvement of 5 billion yen.

3. Dividend payment

4. Consolidated forecast for fiscal 2001 full year

Given these circumstances, accurate forecasting becomes very difficult due to fluctuations in major currencies, price reductions required by intensifying market competition, the degree to which domestic market recovers together with other factors. The Company does, however, offer the following forecast for its consolidated operations for the fiscal 2001 full year.

5-33-8, Shiba, Minato-ku, Tokyo, 108-8410, Japan

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Copyright 2001 by Mitsubishi Motors Corporation.