[ Presentation slides (PDF: 35pages 1,626KB) ]

[ (reference) Corporate Revitalization Committee and CFT Activities (PDF: 8pages 710KB) ]

1. Fiscal 2004 full-year results
   

   (1)	Fiscal 2004 overview
   	Mitsubishi Motors consolidated net sales for fiscal 2004 totaled 2,122.6 billion yen, down 396.8 billion yen from the same period last year (2,519.4 billion yen). Higher net sales in Europe over the previous year failed to counter declines in other regional markets including significant declines in Japan and North America. Mitsubishi Motors posted an operating loss of 128.5 billion yen, 31.6 billion yen worse than for the previous year. Making a positive contribution were cuts in sales incentives and other advertising expenses. lower material and labor costs and the non-recurrence of credit losses from MMC's financial services operations in the United States booked in the previous fiscal year. However, these savings were more than offset by declines in sales volume, primarily in Japan and North America, and from the impact of fluctuations in the model mix. Mitsubishi Motors posted an ordinary loss of 179.2 billion yen, 68.9 billion yen worse than for the previous year. Factors contributing to the deterioration included the cost of issuing new shares for the capital increase implemented in fiscal 2004, and equity method investment losses stemming mainly from the deterioration in the results of Mitsubishi Fuso Truck & Bus Corporation. Mitsubishi Motors posted a net loss for the term of 474.8 billion yen, 259.4 billion yen worse than for the previous year. The main factors contributing to the deterioration were the booking of extraordinary losses including asset-impairment accounting charges in the U.S. and Australia to alleviate future burdens, losses on the sale and disposal of fixed assets, compensation in connection with the transfer of MFTBC shares, free inspection service campaign costs, provisions for losses on restructuring and of restructuring costs.
   (2)	Sales volume
   	Sales of Mitsubishi Motors vehicles on global markets in fiscal 2004 totaled 1,313,000 vehicles, a decline of 214,000 on the 1,527,000 sold the previous year. In Japan, Mitsubishi Motors sold 227,000 vehicles, a decline of 132,000 over the previous year. However, sales exceeded the forecast of 220,000 for the year as month-on-month sales began recovering after bottoming out in July 2004 and were assisted by the introduction of the new Colt Plus from October 2004. In North America, Mitsubishi Motors sold 174,000 vehicles, a decline of 99,000 over the year before. The decline was mainly due to curbs on fleet sales and to slower sales in the end user market. In Europe, Mitsubishi Motors sold 241,000 vehicles, an increase of 27,000 on the previous year. Factors contributing to the higher sales were the introduction of the new Colt, increased sales in Russia and the U.K. and a recovery in Germany where sales had been sluggish earlier in the fiscal year. In Asia and other regions, Mitsubishi Motors sold 671,000 vehicles, a drop of 10,000 over the previous year. Firm sales in the ASEAN region, Latin America, the Middle East and Africa failed to counter downturns in Australia and China.

2. Forecasts for fiscal 2005
   

   Mitsubishi Motors included forecasts for fiscal 2005 in the Mitsubishi Motors Revitalization Plan ("Revitalization Plan") published on January 28 this year. The company has recently revised for certain regions the sales volume plans on which those forecasts were based to reflect changes in the business environment and market vitality since then. The company now plans global sales volume for fiscal 2005 of 1,370,000 vehicles, an increase of 57,000 over the previous year and 10,000 vehicles more than the Revitalization Plan forecast. Mitsubishi Motors forecasts the following regional sales volumes for fiscal 2005. Japan: 253,000 vehicles, an increase of 26,000 over the previous year and 29,000 more than the Revitalization Plan forecast; North America: 184,000 vehicles, an increase of 10,000; Europe: 254,000 vehicles, an increase of 13,000 (forecasts for North America and Europe remain unchanged from those in the Revitalization Plan); Asia and other regions: 679,000, an increase of 8,000 over the previous year and 19,000 fewer than the Revitalization Plan forecast. Mitsubishi Motors forecasts total sales for fiscal 2005 of 2,220.0 billion yen, an increase of 97.4 billion over the previous year and 190 billion yen more than the Revitalization Plan forecast. This revision has been made primarily to reflect the fact that the company's European production subsidiary NedCar, which the company had been planning to unconsolidate, will now remain a consolidated affiliate, and to reflect upwardly revised sales volume plans. Mitsubishi Motors earnings forecasts for fiscal 2005 remain unchanged from those in the Revitalization Plan. The company forecasts a full-year operating loss of 14 billion yen, an improvement of 114.5 billion yen over the previous year, a full-year ordinary loss of 40 billion yen, an improvement of 139.2 billion yen, and a full-year net loss of 64 billion yen, an improvement of 410.8 billion yen.

3. Fiscal 2005 operational plans
   

   (1)	Foundation Set for a Successful Revitalization
   	Since it published the Revitalization Plan on January 28 this year, Mitsubishi Motors has been laying the foundations vital for its achievement. Having this new plan authorized on March 10, the company remains as a certified entity under the "Law on Special Measures for Industrial Revitalization". On March 30, Mitsubishi Motors submitted its final report on past quality issues to the Ministry of Land, Infrastructure and Transport and on the same day announced details of internal disciplinary measures in connection with those issues and now considers the matter of past quality issues to be closed. The company sees this as a major step forward in its crusade to regain trust and confidence. Mitsubishi Motors has successfully secured the funding needed to implement the Revitalization Plan in full and to strengthen its financial footing. The funding derives from the implementation of a 284.2 billion yen capital increase through the issuance of new shares to Mitsubishi Heavy Industries, Mitsubishi Corporation, The Bank of Tokyo-Mitsubishi and Mitsubishi Trust and Banking Corporation. The company also secured 30 billion yen in financing from the Development Bank of Japan at the end of March. In other moves to promote the Revitalization Plan, on April 1 Mitsubishi Motors introduced major organizational and management changes and on April 27 announced the establishment of the Business Revitalization Monitoring Committee. This is an external body that has already started to discharge its remit of following up and monitoring the progress made in the implementation of the Revitalization Plan. Mitsubishi Motors has postponed plans to terminate vehicle production at its Okazaki Plant. This is in order to ensure the full integrity of its quality control and production systems, which is a key aspect to the successful achievement of the Revitalization Plan.
   (2)	Ongoing efforts to regain trust and confidence
   	Mitsubishi Motors reaffirms that regaining the trust of both customers and society at large is the priority issue in the company's revitalization. Toward that end and guided by the three principles of "Corporate Compliance," "Corporate Culture Reform" and "Putting the Customer First," the company will continue to devote all resources to regaining trust and confidence.
   (3)	Business Revitalization Monitoring Committee
   	The Business Revitalization Monitoring Committee is an external body made up of specialists in their own fields from outside the company and of representatives of major shareholders from the Mitsubishi group (Mitsubishi Heavy Industries, Mitsubishi Corporation, The Bank of Tokyo-Mitsubishi). Acting as an advisory body to the Board of Directors, the Committee monitors the progress being made by the Revitalization Plan. As well as offering recommendations, it will also submit reports and proposals in response to specific requests by the Board. By having the implementation of the Revitalization Plan monitored from an external perspective, Mitsubishi Motors has augmented its system of checks and balances as it works to achieve the goals and targets laid down by the Plan.
   (4)	Triple-5
   	Mitsubishi Motors recognizes that the most important factor in achieving the Revitalization Plan is the need for all employees to recognize that they are involved parties and to band together and carry the plan through by their own efforts. Toward that end, the company has recently initiated its Triple-5 strategy — a program in which every employee participates in small-group activities. Belonging to small groups that have established improvement targets for realizing the three goals of Boosting Sales by 5%, Cutting Expenses by 5% and Increasing Reliability by 5%, each and every employee is working to achieve those targets in the course of his or her work.
   (5)	Operational measures by region
   	I. Japan   - Introduction of a new SUV and new concept minicar.   - New model and trim level for Grandis, plus new special editions for other models.   - Will continue working together with sales companies in regaining customer trust.   - Will increase profitability of after-sales services.   - Sales network to be rebuilt.
   	II. North America   - Release of the new Eclipse to be brought forward; new Raider pickup to be introduced.   - Fleet sales to be trimmed back further and inventories reduced with view to rebuilding brand.   - Will gear up for exporting Mitsubishi Motors models made in the U.S. to the Middle East and Russia.
   	III. Reorganization of financial services operations in the U.S.   In March 2005, the company established MMCA Services, LLC as a joint venture between MMCA, its financial services subsidiary in the United States, and Merrill Lynch & Co., Inc. The new company will specialize in the planning, sales and marketing of auto loan and leasing operations.   - In order to offer competitive sales financing products the company is reorganizing its financial services operations in the United States as follows:   - MMCA will reduce its exposure to default risks by selling on auto loan product assets to Merrill Lynch as soon as they are generated.   - Claims management and call center functions will be out-sourced to realize significant cuts in operation costs.   - The tie up with Merrill Lynch will add a boost to the company's financial services business and allow it to offer highly competitive sales financing programs to customer and dealers alike.   - It is planned to move to the new operational footing described above in July 2005.
   	IV. Europe   - Expand sales with active introduction of new products and by leveraging high critical acclaim.   - Maintain sales momentum in Germany and the U.K.   - Expand sales in Russia, the Ukraine and other growth markets.   - Bolster sales strength in southern Europe including France and Spain.
   	V. Asia and other regions   - China: Strengthen operational footing through direct investments in local partners, consolidation and expansion of sales network and by establishing R&D facilities.   - Thailand: Introduce new pickup model; consolidate as core production center.   - Malaysia: Start sales through new sales company.   - Australia: Launch new locally produced model.

Note on forward-looking statements This document contains forward-looking statements about Mitsubishi Motors Corporation's plans, strategies, beliefs and performance that are not historical facts. These forward-looking statements are based on current expectations, estimates, forecasts and projections about the industries in which Mitsubishi Motors Corporation operates, management's beliefs, and assumptions made by management. As the expectations, estimates, forecasts and projections are subject to a number of risks, uncertainties and assumptions, they may cause actual results to differ materially from those projected. Mitsubishi Motors Corporation, therefore, wishes to caution readers not to place undue reliance on forward-looking statements. Furthermore, Mitsubishi Motors Corporation undertakes no obligation to update any forward-looking statements as a result of new information, future events or other developments.