* Targeted numbers in this presentation are subject to ... · * Targeted numbers in this...
Transcript of * Targeted numbers in this presentation are subject to ... · * Targeted numbers in this...
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
Financial Results for FY2003Business Revitalization PlanFinancial Results for FY2003Business Revitalization Plan
Mitsubishi Motors Corporation
May 21, 2004
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
3Apology and pledge
We pay our deepest respects to the spirit of the two victims who died as result of the wheel detachment accident that occurred in January 2002, and of the propeller shaft separation that occurred in October 2002. We also apologize to their families. Apologies go out to all others who have been affected by these tragedies as well as the general public.
MMC promises to go back to the basics of placing top on customers, safety and quality priority, and to change our corporate culture and increase transparency, thereby restoring our company into an organization that everyone can trust.
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
4
Financial Results for FY2003Financial Results for FY2003
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
5FY2003 Summary
Operating result in line with previous forecast
Reversal of all of US and Japan deferred tax assets led to FY03 net loss far below previous forecast
Reversal of deferred tax assets
Provided certain conditions are met, deferred tax assets can be booked based on projections for the next 5 years, and we had been followed this practice.
In countries where a negative taxable income is expected in FY04, following on from FY03, we judged that the valuation of deferred tax assets should be conservative.
In FY03, we reversed all of our US and Japan deferred tax asset (i.e. approx. 140 billion yen). (non-cash items)
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
6FY03 Summary of Financial Results
-2,154
-1,103
-969
25,194
ActualFY03
24,70027,362Net Sales
Exchange Rate
-720439Net Income
-1,150674Ordinary Profit
-1,050840Operating Profit
Feb 19 FCActualFY03FY02
US $ Euro
1)
1)
JPY 123 /US $ JPY 117 /Euro
JPY 115 /US $ JPY 130 /Euro
JPY 117 /US $ JPY 129 /Euro
(JPY 100M)
1) 2) FY02 numbers exclude the iIncl. truck & bus operations mpact of change to account period of overseas subsidiaries.
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
7FY03 Unit Sales by Region
FY02 FY03
214200
(+14)
FY02 FY03
354 359
(+5)
163
191 188
171 101
11099
104
2H
1H
YoY change
Europe
FY02 FY03
273343
(-70)
166
150177
123
North America
FY02 FY03
681680
337 347
334343
(+1)
Japan Asia & RoW Total(000 units)
FY02 FY03
1,5271,577
777 772
755800
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
8FY03 Net Sales by Region
FY02 FY03FY02 FY03FY02 FY03FY02 FY03FY02 FY03
25,19427,362
1)2)
1)1) 1)
5,477 6,169
9,876
5,8406,212 6,620 6,008 6,354
(+735) (+185)(+780) (-3,868)
(JPY 100M)
3,1003,100
2,377 2,925
3,2873,287
2,752
3,0883,088 3,4323,432
3,188
5,1405,140
4,7362,812
3,1963,196
2,899
3,2703,270 3,2113,211
3,143
12,764
14,59813,126
12,068
Net sales Jan-December, 02FY02 excludes net sales of truck & bus operations.
2H
1H
Japan Europe North America Asia & RoW Total
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
9FY03 Operating Profit by Region
FY02 FY03
-668
-353
(+315)
-548
-120
-147-206
FY02 FY03
-204
235
(+439)
1)
-111-93
15283
FY02 FY03
1,016
-1,474
-1,040
(-2,490)
1)
619
397
FY02 FY03
696 623
1)
293
255
441
330
FY02 FY03
-969
840
Operating profit Jan-December, 02FY02 excludes operating profit of truck & bus operations.
1)2)
215
625
-764
-205
2H
1H
-434
(-73)
(JPY 100M)
Japan Europe North America Asia & RoW Total
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
10
MMC Revitalization PlanMMC Revitalization Plan
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
11What happed in 2004?
February Preparation of new mid-term business plan with support of DC
Discussion for potential equity increase among DC and 3 Mitsubishi group companies
April DC announcement to cease further financial support
Announcement by 3 Mitsubishi group companies to continue to support MMC
Resignation of Rolf Eckrodt as President & CEO
Establishment of 40-member revitalization team, in cooperation with 3 Mitsubishi group companies, to start drawing up the Revitalization Plan
Yoichiro Okazaki to become Chairman, President & CEO
May Announcement of Business Revitalization Plan
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
12Confronting crisis
Turnaround far below targeted profit level
Credibility collapsed due to inappropriate response to recalls
This is our last chance
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
13MMC Commitment
Self revitalization
All employees to unite strength to revitalize MMC on our own
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
14Outline of MMC Revitalization Plan
1. Management transformation
– Restoration of credibility
– Complete execution of reform
2. Commitment
3. Transformation of cost structure
4. Product strategy
5. Regional strategy
6. DC Alliance
7. Financial targets
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
Organization to complete management transformation(two ‘external eyes’)
15
• Establish corporate ethics with external supervision• Decisive step to realize business revitalization through equity injection
from 3rd party
Chairman / CEOChairman / CEO
President / COOPresident / COO
Line function
BoDBoDBusiness Ethics
Committee (led by external
intellectuals)
Business Ethics Committee
(led by external intellectuals)
“Restore credibility
“Execution of business revitalization”
Concentrate in FY04
Corporate Restructuring
Committee (External investors to nominate head of CRC)
Corporate Restructuring
Committee (External investors to nominate head of CRC)
1)
1)Phoenix Capital
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
16Restoration of credibility• Business Ethics Committee to supervise CSR Promotion Office under
public scrutiny• Consolidate quality assurance / control function into Quality Assurance
Office• CSR Promotion Office to constantly audit Quality Assurance Office and
lead improvement
Board of DirectorsBoard of Directors
Chairman / CEOChairman / CEO
President / COOPresident / COO
Executive CommitteeExecutive Committee
Quality CommitteeQuality Committee
Business Ethics CommitteeLed by external intellectuals
Business Ethics CommitteeLed by external intellectuals
Advisory
CSR Promotion OfficeCSR Promotion Office
Corporate AuditCorporate Audit
Customer RelationsCustomer Relations
ComplianceCompliance
Quality Assurance OfficeQuality Assurance Office
Supervision
Audit Report
Board of AuditorsBoard of Auditors
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
17Complete execution of reforms
• Corporate Restructuring Officer (to be sent from Phoenix Capital) to define drastic restructuring measures from shareholders’ viewpoint
• Cross functional activities consist of younger members to break through stereotypes
• Head of each operation function to be responsible for implementation• Each operation function to be responsible for regional profit/loss
Corporate Restructuring CommitteeCorporate Restructuring Committee
Corporate Restructuring OfficerCorporate Restructuring Officer
Brand revitalization
Brand revitalization
Organi.HR
Organi.HR
CostReduction
CostReduction
CustomerRelations CustomerRelations
Cross functional activities
Project Team
IdeasIdeasProduct
Line Function
Sales
R&D
Production
Procurement
Japan NA Europe China ASEAN
RegionP/L
Respo.
RegionP/L
Respo.
RegionP/L
Respo.
RegionP/L
Respo.
RegionP/L
Respo.
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
18Simple organization
51
37
0
10
20
30
40
50
60
FY03 E FY04 E(FC)
Number of executives Number of departments
230
150
0
50
100
150
200
250
FY03 E FY04 E(FC)
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
19Outline of MMC Revitalization Plan
1. Management transformation
– Restoration of credibility
– Complete execution of reform
2. Commitment
3. Transformation of cost structure
4. Product strategy
5. Regional strategy
6. DC Alliance
7. Financial target
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
20Commitment
Business Revitalization PlanCommitment
FY2005 Positive ordinary profit
FY2006 Positive net profit
FY2005 Positive ordinary profit
FY2006 Positive net profit
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
21Achievement of the goals by a V-shaped recovery
‘04 ‘05 ‘06
Continuous effects of cost reduction Continuous effects of cost reduction
Return to growth
Product strategy Product strategy
Regional strategyRegional strategy
Fixed cost reductionFixed cost reduction
Variable cost reductionVariable cost reduction
Disposition of unprofitable businesses
Disposition of unprofitable businesses
Positive ordinary
profit
Positive ordinary
profit
Positive net
income
Positive net
income
0
(JPY 100M)
Cost structure transformation
1,000Operating profit
‘07
-1,000
Note: The above commitment is premised on the implementation of the initiatives in the current Revitalization Plan.
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
22Outline of MMC Revitalization Plan
1. Management transformation
– Restoration of credibility
– Complete execution of reform
2. Commitment
3. Transformation of cost structure
4. Product strategy
5. Regional strategy
6. DC Alliance
7. Financial target
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
23Drastic transformation of cost structure
Radical reduction of fixed costs– Reduction of production capacity– Headcount reduction
Drastic reduction of material costs which covers significant portion of variable costs
Other cost reduction opportunities– Consolidation of platforms
– US sales financing Business– Relocation of HQ functions to Kyoto
Radical reduction of fixed costs– Reduction of production capacity– Headcount reduction
Drastic reduction of material costs which covers significant portion of variable costs
Other cost reduction opportunities– Consolidation of platforms
– US sales financing Business– Relocation of HQ functions to Kyoto
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
24Transformation of cost structure
-17%Reduction of Production capacity
15 ⇒ 6 FY10Platform consolidation
-15% FY06Material cost reduction
-30%(7,600/FTE) FY06Headcount
reduction
Targets Schedule
FY06
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
25Transformation of cost structure
410 oku-yen
990 oku-yen
1,540 oku-yen
140 oku-yen
540 oku-yen
850 oku-yen
Fixed cost reduction– Production capacity– Indirect headcount– Platforms
Variable cost reduction
– Material cost– Sales expenses
FY2005 FY2006FY2004(vs. FY03)
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
26Reduction of production capacity
Consolidate 3 domestic plants into 2
Study production capacity adjustment of MMNA (US) Close MMAL (Australia) engine plant in FY05
0
100
FY03 FY06 (Target)
Production capacity
-17%(10,000 Units)
97%78%
FY03 FY06 (Target)
Capacity utilization
+19%
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
27Reduction of production capacity: Japan
Excess production capacity in Japan
Annual capacity 900,000 units
FY04 production plan 700,000 units
Excess production capacity in Japan
Annual capacity 900,000 units
FY04 production plan 700,000 units
PMC
Current problemsCurrent problems Revitalization PlanRevitalization Plan
Close assembly line in Okazaki by FY06
Aging backbone facilityNo large-SUV facility
5 billion yen fixed cost saving per year
Close assembly line in Okazaki by FY06
Aging backbone facilityNo large-SUV facility
5 billion yen fixed cost saving per year
PMC
Okazaki
Mizushima
• Close assembly line (Shift to other plant)
• Pilot plant for production preparation of upcoming models
Mizushima
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
28Reduction of production capacity: Australia
Low utilization due to lower export and domestic sales
Excess production capacity
・Capacity 62,000 units・FY03 actual 32,000 units
Aging models (past 8 years)
Low utilization due to lower export and domestic sales
Excess production capacity
・Capacity 62,000 units・FY03 actual 32,000 units
Aging models (past 8 years)
Current problemCurrent problem Revitalization PlanRevitalization Plan
Close engine plant in FY05
Downsize assembly plant to 30,000 units
Fixed cost reduction by restructuring
Sales expansion through Magna successor in FY05
Close engine plant in FY05
Downsize assembly plant to 30,000 units
Fixed cost reduction by restructuring
Sales expansion through Magna successor in FY05
Engine plant(Lonsdale)
• Close• Import engine from Japan
Assembly plant(Tonsley)
Downsize
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
29Headcount reduction
0
10,000
20,000
30,000
40,000
50,000
60,000
FY04 Beg. FY04E(Forecast)
FY05E (Target) FY06E (Target)
Total:△22%
Indirect labor:△30%
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
30Material cost reduction
PastPast【Reduction of Direct materials】 Cross functional activities focusing on parts
Revitalization PlanRevitalization Plan
Additional initiatives focusing on models
Dedicated design teamExamination of drawingsRevision of specification and equipmentTear downReduce number of variety, Parts commonization
Global sourcingCross functional activities overseas
Die cost reduction【Indirect materials】 Promotion of centralized purchasing
Collaborative effort across organization/geography
(JPY 100M)
Financial EffectFinancial Effect
360
750
1200
0
200
400
600
800
1000
1200
1400
FY04(FC)
FY05(Target)
FY06(Target)
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
31Platform integration
CurrentCurrent 2010 Target2010 Target15 P/F15 P/F 6 P/F6 P/F
New generation mini P/FNew generation mini P/F
Small FF P/FSmall FF P/F
Mid-size FF P/FMid-size FF P/F
Full-size FF P/FFull-size FF P/F
FR SUV P/FFR SUV P/F
Commercial FR P/FCommercial FR P/F
Minica, eK WagonMinica, eK WagonminicabminicabPajero MiniPajero Mini
ColtColt
LancerLancer
GrandisGrandis
Pajero ioPajero ioPajeroPajero
L200 StradaL200 StradaFreecaFreeca
GalantGalant
Space GearSpace GearDelicaDelica
EclipseEclipseDiamanteDiamante
A-seg.A-seg.
B-seg.B-seg.
C-seg.C-seg.
D-seg.D-seg.
SUVSUV
ComCom
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
32Review of US sales financing business
Significant credit loss
Rapid growth of total assets serviced
Increased complexity in the total portfolio
Insufficient staffing
Increase in funding cost
Significant credit loss
Rapid growth of total assets serviced
Increased complexity in the total portfolio
Insufficient staffing
Increase in funding cost
Issues of US sales financing business
Issues of US sales financing business Revitalization PlanRevitalization Plan
Review of captive sales financing business
Continue framework to provide competitive sales financing products to customers and dealers
Run off existing portfolio
Potential strategic alliance with external parties
Review of captive sales financing business
Continue framework to provide competitive sales financing products to customers and dealers
Run off existing portfolio
Potential strategic alliance with external parties
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
33Consolidation of HQ function to production location
• Bring back functions which should be at work sites• Realize small HQ utilizing existing resources at a maximum• Potential reduction of 30% headcount, approx. 2 billion yen
annual saving of running costs
Shinagawa(1,400)
[Production, procurement, logistics, product planning]
[Government relations, metropolitan sales, etc.]
[Others]Kyoto(700)
Okazaki(200)
Tokyo(100)
<Present> <FY06>
HQ relocation
( ): headcount
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
34Outline of MMC Revitalization Plan
1. Management transformation
– Restoration of credibility
– Complete execution of reform
2. Commitment
3. Transformation of cost structure
4. Product strategy
5. Regional strategy
6. DC Alliance
7. Financial target
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
35“MMC DNA”
Return to “MMC DNA car” (SUV: Pajero, Sporty: Lancer Evolution)
Spirited Spirited GearGear
StrongStrong
SportySportyDynamicDynamic
Sharp DesignSharp Design Direct responseDirect response
4WD/Durability4WD/Durability New conceptNew concept
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
36Revival plan of “MMC DNA”
CY04CY04 CY05CY05 CY06CY06 CY07CY07 CY08CY08
Aluminum block+ MIVEC
Aluminum block+ MIVEC Next GDINext GDI MIVEC ⅡMIVEC ⅡHigh-efficiency
TURBOHigh-efficiency
TURBONew miniengine
New miniengine
Next agesuspensionNext age
suspensionAll wheel control(S-AWC)
All wheel control(S-AWC)
ComfortableSUV
ComfortableSUV
New minicarplatform
New minicarplatform
4WDmono-box
4WDmono-box MR SUVMR SUV
New Compact V6New Compact V6World EngineWorld Engine
1)
“SUV”DNA
“Sporty”DNA
Technology DN
A
MMCengine
MMCchassis
MMCpackaging
1)to be mounted in CY06
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
37Introduction of Product Executive (PX)
Model-specific Product Executive (PX) takes charge of end-to-end product lifecycle from product planning, styling, development, improvement down through quality follow-up
CurrentCurrent Product ManagerPre-development design staff
Sales & marketing staff
Product planning/styling Sales CustomersDevelopment & production
PXPX
DesignTechnology
CostQuality
DesignTechnology
CostQuality
ProductSales
ProductSales
DesignDesign
Product planningProduct planning
DevelopmentDevelopment
PurchasingPurchasing
ProductionProduction
QualityQuality
Sales planningSales planning
AdvertisingAdvertising
Sales structureSales structure
Model
“Produce”
“Sell”
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
Aggressive introduction of “MMC DNA” Models (Including derivatives)
38
FY04 FY05 FY06 FY07 FY08FY00-FY03 FY04 FY05 FY06 FY07 FY04-FY07
8Models
16 Models
Japan
Europe
China
North America
10Models
5Models
7Models
7Models
11Models
5Models
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
Aggressive introduction of “MMC DNA” Models(New models/Full model changes)
38’
FY04 FY05 FY06 FY07 FY08FY00-FY03 FY04 FY05 FY06 FY07 FY04-FY07
6Models
10 Models
Japan
Europe
China
North America
10Models
5Models
7Models
7Models
11Models
5Models
New Products Full model change
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
39Outline of MMC Revitalization Plan
1. Management transformation
– Restoration of credibility
– Complete execution of reform
2. Commitment
3. Transformation of cost structure
4. Product strategy
5. Regional strategy
6. DC Alliance
7. Financial target
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
Japan: Product offensive based on “MMC DNA”,close communication to 3.6 million users
40
“OEM with no attractive car”Unfocused / follower model
“Rapid fire” of customer focused, MMC DNA vehicles
FY04:4 , FY05:5 models
Accelerate CRMThorough contact to MMC customersCall Center
Free inspection / 24H call support
Loss of consumer confidence caused by lack of appropriate actions at product recalls
Model
Customer
Relation
Revitalization PlanCurrent problem
Customer follow-up utilizing IT infrastructureAccelerate outlet renewalSharing dealer best practiceShift sub-dealer to satellite shops
Loss of strength at dealers
Sales
Return to customer centric sales cycle
Negative spiral toward low revenue
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
41US: Size adjustment for profitability
Revitalization PlanCurrent Problems
Lower fleet businessMaintain residual valueLower incentives
Introduction of special action modelsNew products:FY05:3 models
Volume⇒Adverse effect due to increase fleet
Lower residual valueHigher incentivesModel
High cost structure due to excess capacityMfg. Production capacity adjustment
Volume⇒High dependency on sales finance
Inadequate risk control, huge loss mainly due to risky products
Appropriate risk controlDownsize managed portfolioKeep service level by leveraging outside partner
Finance
Return to demand-supply balanced business
Negative spiral toward low revenue
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
42China:Pursuit of profit at high growth market• Conversion of JV’s production and sales channel into MMC brand through
increased equity • Enlarged profit and stable operation through tighter control of JV
• Reinforcement of product line-up by introduction of new cars / Asian cars• Transformation of Engine / Transmission JV into the Hub of parts supply for Asia
3.88.0
12.918.9 21.3
18.717.3
16.3
12.4 9.7
0
5
10
15
20
25
30
35
FY04 (FC) FY05(Target)
FY06(Target)
FY07(Target)
FY08(Target)
Sales volume(000 units)
22.525.3
29.231.3 31.0
MMC Brand
110
266
380
470500
0
100
200
300
400
500
600
FY04 (FC) FY05(Target)
FY06(Target)
FY07(Target)
FY08(Target9
Number of MMC Brand DealersLocations
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
43Volume by Region
0
400
800
1,200
1,600
2,000
Others 467 467 443 354 346 373N. Asia 113 179 238 306 340 424NA 357 343 273 233 258 292Europe 207 200 214 260 223 254Japan 405 354 359 300 336 363
FY01 FY02 FY03 FY04 (FC) FY05(Target)
FY06(Target)
1,527 1,453 1,5031,706
1,549 1,543
1) Unit decrease in Other area after 04 is mainly caused by elimination of vehicle for Malaysia Proton T/M
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
44Outline of MMC Revitalization Plan
1. Management transformation
– Restoration of credibility
– Complete execution of reform
2. Commitment
3. Transformation of cost structure
4. Product strategy
5. Regional strategy
6. DC Alliance
7. Financial target
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
45Ongoing main DC Alliance will continue
Each issue of future alliances will be gone
through on economical rationality
Ongoing main DC allianceFuture
direction of alliance
A direction of alliances on future issues
Joint development & production of a platform of B seg. (Colt class) (EU)
Continue
Joint development & production of world engines (North America) Continue
Continue
Continue
Joint development of platforms of C seg. (Lancer class) (North America)
OEM of pick-up trucks from Chrysler (North America)
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
46Outline of MMC Revitalization Plan
1. Management transformation
– Restoration of credibility
– Complete execution of reform
2. Commitment
3. Transformation of cost structure
4. Product strategy
5. Regional strategy
6. DC Alliance
7. Financial targets
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
47Transformation of cost structure by the Revitalization Plan
-1,500
-1,000
-500
0
500
1,000
1,500
2,000(億円)
FY03-969 oku-yen
Vol.M
ix
Material
Cost, etc.
Advertisem
ent
Fixed costs
Vol / M
ix
Material
Cost, etc.
Advertisem
ent
Fixed costs
Vol. M
ix
Material
Cost, etc.
Advertis
ement
Fixed costs
FY04(FC)-1,200 oku-yen
FY05(Target)200 oku-yen
FY06(Target)1,200 oku-yen
Forex
-254+311 +48 -83 -253
+152
+422
+187
+639
+730
+344+108 -182
Deviation analysis of operating result (FY03 to FY06)
(+) Headcount reduction, adjustment production, expenditure cut, contraction of sales finance business etc.
(+) Headcount reduction, adjustment production, platform integration etc.
(-) R&D investment etc.
(+) Headcount reduction, adjustment production, expenditure cut etc.
(-) R&D investment etc.
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
48Financial target (P/L)
700100-2,300-2,154Net Income
1,00030-1,500-1,103Ordinary profit
(4.8%)(0.9%)(-5.3%)(-3.8%)(Operating profit margin)
-1,200
22,500
FY04
Forecast
1,200
24,900
FY06target
21,80025,194Net Sales
200-969Operating profit
FY05
target
FY03
actual(¥00M)
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
49Financial target (B/S)
Target Deadline
Interest bearing debt (Gross)
Debt equity ratio
-40% or more (vs. FY03) FY06
Less than 2.5 FY06
* Targeted numbers in this presentation are subject to implementation of initiatives which are included in the Revitalization Plan.
50Support:Equity enhancement measures
Equity increase 4,500 oku-yen
Mitsubishi Gr. 2,700 oku-yen [Preferred stock (w/ compulsory conversion
right):
1,400 oku-yen]Mitsubishi Heavy IndustryMitsubishi CorporationBank of Tokyo MitsubishiOther Mitsubishi companies
[Preferred stock (debt equity swap) :
1,300 oku-yen]Bank of Tokyo MitsubishiMitsubishi Trust Bank
China Motors (CMC) 100 oku-yenPrivate placement 1,700 oku-yen[Common stock: 700 oky-yen]
Phoenix Capital[Preferred stock: 1,000 oku-yen]
JP Morgan
Equity increase 4,500 oku-yenOperating C/F 4,800 oku-yenCash 700 oku-yen
For restructuring 10,000 oku-yen (FY04-06: accumulated)
Use of proceed
Revitalization 7,200 oku-yenCapex 3,600 oku-yenR&D 2,900 oku-yenRestructuring 700 oku-yen
Debt repayment 2,800 oku-yen
(Note 1)
Note 1: Maximum 1,000 oku-yenNote 2:Amounts of subscription are subject to the market condition.