Fiscal 2005 full-year results

Fiscal 2005 overview}1}

Sales volume}1}

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FY2005 achievements (against targets announced November 10, 2005)}0}

Financial results}1}

• Net sales in fiscal 2005 were on a similar level to those of fiscal 2004 and some 100 billion yen under target due mainly to lower OEM sales in overseas markets.
• Operating income was more than 20 billion yen better than the forecasted loss of 14 billion yen and returned to the black a year earlier than the target set out in the Mitsubishi Motors Revitalization Plan announced January 28, 2005.
• Ordinary income remained in negative territory but showed an upward swing against targets similar in scale to that of operating income.
• Net loss was 28.2 billion yen worse than target due to the booking of larger extraordinary losses than planned in order to solidify operations on a new and stronger base. The larger extraordinary losses include: an increase in asset impairment accounting charges associated with the fall in market value of land owned by sales companies in Japan; the taking of further asset impairment losses above those made last year due to the continuing delay in sales recovery in North America and Australia; and restructuring charges in North America related to consigned production activities to lessen the future fixed cost burden.

Sales volume}1}

• Global retail unit volume totaled 1.344 million vehicles, 26,000 short of the 1.370 million announced forecast.
• Regionally, Japan saw volume surpass the forecast of 256,000 units by 1,000 vehicles. In North America, volume fell short against the 169,000 unit target by 13,000. European volume came in at 267,000 vehicles, higher by 13,000 than the 254,000 unit target. Lastly in Asia and other regions, results were below the 691,000 unit target by 27,000 units, for a total of 664,000 units.

Forecasts for fiscal 2006}0}

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Fiscal 2006 operational plans}0}

Japan}1}

• Introduce fully redesigned eK Wagon, Pajero and Delica models and of special editions of other models.
• Strengthening sales ability through stronger partnerships with sales companies.
• Restructuring sales networks.

North America}1}

• Continue implementation of measures designed to normalize sales activities.
• Strengthen dealer marketing and selling capabilities through training.
• Consistent communication message.
• Effective financial services operations.
• Improve productivity at the company's U.S. production facility.
• Introduce new products that attract more customers & boost sales.

Europe}1}

• Introduce a number of new cars throughout the fiscal year.
• Expand sales of current models.
• Maintain sales momentum in Germany, U.K and other volume markets.
• Expand sales in Russia, the Ukraine and other growth markets through the introduction of a full-size sedan.

Asia and other regions}1}

• China: Make an equity investment in South East (Fujian) Motor Co., Ltd. Build up and extend company's operating base in China by expanding the Mitsubishi brand lineup.
• Thailand: Expand export shipments of new Triton 1-ton pickup model.
• Australia: Strengthen sales through the introduction of three new models (imports) and new trim versions of locally produced models.
• Latin America, Middle East and Africa: Boost sales through introduction of new 1-ton pickup model.

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Progress in Mitsubishi Motors Revitalization Plan}0}

Efforts to regain trust}1}

Improving profitability}1}