Tel: URL. 1. Consolidated financial highlights (1 April 2001 through 31 March 2002)

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5 Consolidated Financial Results for FY2001 (1 April 2001 through 31 March 2002) Mitsubishi Motors Corporation Code No: 7211 Listed on: Tokyo, Osaka, Nagoya, Fukuoka, Kyoto and Sapporo stock exchanges Head office: Tokyo Contact: Makoto Akashi, Expert Corporate Communications Dept. Tel: URL Meeting of Board of Directors for FY2001 financial results: 13 May 2002 Parent company name: Code No.: Parent company holding: % United States accounting standards applied: No 1. Consolidated financial highlights (1 April 2001 through 31 March 2002) (1) Consolidated financial results Sales Operating profit Ordinary income Million Yen % Million Yen % Million Yen % FY2001 3,200, ,227 11,863 FY2000 3,276, ,865 94, May 2002 Net income Net income per share basic Net income per share diluted 1 Return on shareholders equity Ratio of ordinary income to total assets Ratio of ordinary income to sales Million Yen % Yen Yen % % % FY , FY , Note 1: Equity in income of affiliates accounted for by equity method: FY2001 FY2000 Note 2: Average number of shares issued and outstanding during term (consolidated): FY2001 FY2000 Note 3 Accounting policy changes since last closing: Yes Note 4 Sales, operating profit, ordinary income and net income percentages indicate changes over previous fiscal year. (2) Consolidated financial position Total assets Shareholders equity Ratio of shareholders 4,352 3,164 1,470,163,352 1,194,900,315 million yen million yen Shareholders equity per share equity Million Yen Million Yen % Yen FY2001 2,894, , FY2000 2,981, , Note: Number of shares (consolidated) issued and outstanding at year-end: FY2001 FY2000 (3) Consolidated cash flows Cash flow from 1,470,163,263 1,470,163,553 operating activities Cash flow from investing activities Cash flow from financing activities Ending cash & cash equivalents Million Yen Million Yen Million Yen Million Yen FY ,982 4, ,643 95,189 FY ,289 91,441 14, ,863 (4) Scope of consolidation and equity method Consolidated subsidiaries: Non-consolidated subsidiaries accounted for by equity method: Affiliates accounted for by equity method: (5) Changes in scope of consolidation and equity method Consolidation: Included Excluded 3 5 Equity method: Included Excluded 2. FY2002 consolidated financial results forecast (1 April 2002 through 31 March 2003) Sales Ordinary income Net income Million Yen Million Yen Million Yen Half year Full year 3,400,000 48,000 38,000 FYI: Forecast net income per share for full term: CAUTIONARY STATEMENT. These forecasts are based on judgments and estimates that have been made on the basis of currently available information and are subject to a number of risks, uncertainties and assumptions. Changes in the company s business environment, in market trends and in exchange rates may cause actual results to differ materially from these forecasts

6 3. Consolidated financial statements (1) Consolidated statements of income (1 April March 2002) Millions of Yen FY2001 FY2000 Change Sales... Cost of sales... Gross profit before provision for unrealized profit on installment sales... Reversal of deferred profit on installment sales... Gross profit... Selling, general and administrative expenses... Operating profit... Non-operating income... (Interest and dividends income)... (Other income)... Non-operating expenses... (Interest expenses)... (Other expenses)... Ordinary income... Extraordinary gain... Extraordinary loss... Income before taxes... Income taxes... Minority interests... Net income... Note: * indicates an addition 3,200,699 3,276,716 76,017 2,639,181 2,754, , , ,863 39, , ,103 39, , ,968 74,445 40,227 73, ,092 20,518 23,265 2,747 (10,767) (12,162) ( 1,395) (9,750) (11,102) ( 1,352) 48,882 43,457 5,425 (32,609) (35,784) ( 3,175) (16,273) (7,672) (8,601) 11,863 94, ,920 9,577 7,274 2,303 53, , ,190 31, , ,414 42, ,623 65,969 * 477 * 20,527 20,050 11, , ,395 (2) Consolidated statements of retained earnings Millions of Yen FY2001 FY2000 Change Retained earnings at start of year ,304 76, ,090 Increase in retained earnings , Revaluation of assets ( ) (1,165) (1,165) Due to exclusion of affiliates in equity method (292) ( ) (292) Decrease in retained earnings Due to inclusion of subsidiaries... ( ) (117) (117) Net income... 11, , ,395 Retained earnings at end of year , ,304 11,548 2

7 (3) Consolidated balance sheets Millions of Yen Assets At 3/31/02 At 3/31/01 Change Current Assets... (1,098,991) (1,227,588) ( 128,597) Cash on hand and in banks... 90, ,180 11,911 Notes and accounts receivable , ,279 96,427 Marketable securities... 6,187 15,512 9,325 Inventories , ,807 46,389 Short-term loans receivable... 26,026 18,045 7,981 Deferred tax assets... 71,692 97,102 25,410 Other current assets , ,806 52,493 Allowance for doubtful accounts... 12,754 13, Fixed Assets... (1,795,569) (1,754,080) (41,489) Tangible fixed assets... 1,219,469 1,270,179 50,710 Intangible fixed assets... 11,506 11, Investment securities , ,214 6,973 Long-term loans receivable... 80,959 84,432 3,473 Deferred tax assets... 91,913 91,913 Investments and other non-current assets , ,074 6,477 Allowance for doubtful accounts... 18,072 21,844 3,772 Liabilities & shareholders equity Total assets 2,894,560 2,981,668 87,108 Current liabilities... (2,056,643) (1,945,179) (111,464) Notes and accounts payable , , ,987 Short-term loans payable... 1,015, , ,900 Interest-free short-term loans payable... 14,803 14,803 Other accounts payable and accrued expenses , ,616 46,440 Income taxes payable... 5,287 7,200 1,913 Warranty claims allowance... 27,945 27, Other current liabilities , , ,848 Non-current liabilities... (551,115) (787,189) ( 236,074) Bonds , , ,726 Long-term loans payable , ,063 38,241 Interest free loans... 40,709 57,536 16,827 Accrued severance retirement benefit reserve , ,939 26,381 Deferred tax liabilities... 17,184 19,062 1,878 Other fixed liabilities... 27,140 20,161 6,979 Total liabilities 2,607,759 2,732, ,609 Minority interests... 16,138 6,768 22,906 Shareholders equity Common stock , ,201 Additional paid-in capital , ,816 Retained earnings , ,304 11,548 Unrealized gain on securities... 34,830 36,400 1,570 Translation adjustment... 48,428 53,045 4,617 Total shareholders equity 270, ,068 14,595 Total liabilities, minority interests & shareholders equity 2,894,560 2,981,668 87,108 3

8 (4) Consolidated statements of cash flows Millions of Yen FY2001 FY2000 Change Cash flows from operating activities Net loss before income taxes... 31, , ,414 Depreciation , ,598 8,061 Amortization of goodwill... 1,096 9,890 8,794 Change in allowance for doubtful accounts... 5,184 8,089 13,273 Change in accrued severance indemnities... 24, , ,048 Interest and dividends income... 10,767 12,162 1,395 Interest expenses... 32,609 35,784 3,175 Foreign exchange loss... 1, ,111 Equity in earnings of affiliates... 4,352 3,164 1,188 Gain on sale and disposal of tangible assets ,629 3,816 Gain on sale of investment securities... 3,998 7,750 3,752 Appraisal loss on investment in securities... 1,377 5,706 4,329 Change in trade receivables ,132 87,700 19,432 Change in inventory... 65,361 7,131 58,230 Change in trade payables ,793 87, ,843 Others... 14,673 78,555 63,882 Sub Total 126, ,223 31,079 Interest and dividends received... 10,381 12,404 2,023 Interest paid... 32,816 35,441 2,625 Income tax paid... 11,726 6,896 4,830 Cash flows from operating activities 91, ,289 35,307 Cash flows from investing activities Change in term deposits Acquisition of securities , Sale of securities ,887 2,812 Acquisition of tangible fixed assets , ,483 1,643 Disposition of tangible fixed assets ,899 94,936 29,963 Acquisition of investment securities... 2,640 2, Sale of investment securities... 10,439 10, Acquisition of subsidiaries accompanying changes in scope of consolidation 3,558 15,650 12,092 Loans made , , ,981 Loans recovered , , ,419 Others... 5,384 5, Cash flows from investing activities 4,882 91,441 86,559 Cash flows from financing activities Change in short-term borrowings and commercial paper , , ,742 Addition to long-term loans payback... 44,076 18,455 25,621 Repayment of long-term loans payable ,190 70,773 42,417 Issuance of bonds , ,174 19,249 Redemption of bonds , , ,361 Issuance of shares , ,745 Others Cash flows from financing activities 112,643 14,567 98,076 Effect of exchange rate changes on cash and cash equivalents... 4,870 4, Net change in cash and cash equivalents... 20,673 25,675 46,348 Cash and cash equivalents at beginning of year ,863 89,590 26,273 Change in cash and cash equivalents due to changes in scope of consolidation Cash and cash equivalents at end of year... 95, ,863 20,674 4

9 Notes to consolidated financial statements 1. Scope of consolidation The consolidated financial statements include the accounts of Mitsubishi Motors Corporation and 182 of its subsidiaries, of which 122 are located in Japan and 60 outside Japan. Subsidiaries located in Japan include: Tokyo Mitsubishi Motor Sales Co., Ltd. Tokyo Mitsubishi FUSO Motor Sales Co., Ltd. Tokyo Mitsubishi Motor Parts Sales Co., Ltd. Pajero Manufacturing Co., Ltd. Subsidiaries located outside Japan include: Mitsubishi Motor Sales of America, Inc. Mitsubishi Motor Manufacturing of America, Inc. Mitsubishi Motors Australia, Ltd. Included for this closing: 3 companies, including: Chuo Mitsubishi Motor Sales Co., Ltd. Excluded for this closing: 5 companies, including: Chugoku Mitsubishi Motor Sales Co., Ltd. 2. Application of equity method The consolidated financial statements include the accounts of 32 companies to which the equity method applies. They include: Mitsubishi Auto Credit & Lease Corporation PT Mitsubishi Krama Yudha Motors & Manufacturing Included for this closing: 1 company MS Transportation Company Limited Excluded for this closing: 3 companies, including: Kitami Mitsubishi Motor Sales Co., Ltd. 5

10 Segment information (1) Business segment Millions of Yen I II FY2001 Automotive Financial services Total Eliminations or Corporate Consolidated Sales & operating profit Sales (1) External customers 3,104,045 96,653 3,200,699 3,200,699 (2) Intersegment & transfers 2,358 2,672 5,030 5,030 Total 3,106,403 99,326 3,205,730 5,030 3,200,699 Operating expenses 3,056, ,334 3,160, ,160,471 Operating profit 49,877 5,008 44,869 4,641 40,227 Assets, depreciation & capital expenditure Assets 2,504, ,670 3,018, ,717 2,894,560 Depreciation 100,500 46, , ,537 Capital expenditure 64,842 93, , ,500 I II FY2000 Automotive Financial services Total Eliminations or Corporate Consolidated Sales & operating profit Sales (1) External customers 3,191,943 84,772 3,276,716 3,276,716 (2) Intersegment & transfers 2,116 9,189 11,305 11,305 Total 3,194,059 93,962 3,288,022 11,305 3,276,716 Operating expenses 3,264,587 93,596 3,358,183 7,602 3,350,581 Operating profit 70, ,161 3,703 73,865 Assets, depreciation & capital expenditure Assets 2,587, ,104 3,035,968 54,300 2,981,668 Depreciation 113,648 40, , ,598 Capital expenditure 75, , , ,353 Note: 1. Operations are divided by sector and by market 2. Major products by operation (1) Automotive: Passenger cars, trucks and buses (2) Financing: Sales financing (2) Geographical segment Millions of Yen FY2001 Japan North America Europe Asia Others Total Eliminations or Corporate Consolidated I Sales & operating profit Sales (1) External customers 1,518, , ,433 67, ,405 3,200,699 3,200,699 (2) Intersegment 680,077 7,112 3,673 90,130 42, , ,974 Total 2,198, , , , ,385 4,024, ,974 3,200,699 Operating expenses 2,176, , , , ,684 3,976, ,644 3,160,471 Operating profit 22,795 45,538 17, ,298 48,557 8,329 40,227 II Assets 2,175, , , , ,460 3,452, ,538 2,894,560 FY2000 Japan North America Europe Asia Others Total Eliminations or Corporate Consolidated I Sales & operating profit Sales (1) External customers 1,705, , ,491 69, ,488 3,276,716 3,276,716 (2) Intersegment 731,540 6,287 1,774 83,466 26, , ,837 Total 2,436, , , , ,257 4,126, ,837 3,276,716 Operating expenses 2,498, , , , ,333 4,195, ,914 3,350,581 Operating profit 61,246 33,559 30,278 1,901 9,075 68,942 4,922 73,865 II Assets 2,289, , ,638 90, ,919 3,456, ,386 2,981,668 Note: 1. National and regional groupings are by geographical proximity 2. Main countries and regions outside Japan are grouped as follows: (1) North America: United States of America (2) Europe: The Netherlands (3) Asia: Thailand, Philippines (4) Other: Australia, New Zealand, Puerto Rico, U.A.E. 6

11 (3) Overseas sales Millions of Yen FY2001 North America Europe Asia Other Total Overseas sales 891, , , ,441 2,024,187 Consolidated sales 3,200,699 Percentage in total sales 27.9% 16.9% 8.2% 10.3% 63.2% FY2000 North America Europe Asia Other Total Overseas sales 911, , , ,847 1,983,287 Consolidated sales 3,276,716 Percentage in total sales 27.8% 12.4% 9.5% 10.8% 60.5% Note: 1. National and regional groupings are by geographical proximity 2. Main countries and regions outside Japan are grouped as follows: (1) North America: United States of America (2) Europe: The Netherlands, Italy, Germany (3) Asia: Thailand, Malaysia, Taiwan (4) Other: Australia, New Zealand, Puerto Rico, 3. Overseas sales include export sales of MMC and its consolidated subsidiaries and sales (other than exports to Japan) of its foreign consolidated subsidiaries 7

12 I The MMC group of companies The Mitsubishi Motors Corporation group of companies comprises 182 subsidiaries, 32 affiliates and 2 other associates (as at 31 March 2002). The MMC group is engaged in the development, production and sales of automobiles (passenger cars, trucks and buses), parts for those automobiles, and industrial engines. MMC is responsible for most of the development work. Mitsubishi regular and small passenger cars and minicars are produced by MMC, with some recreation vehicle models (the Pajero, among others) also being produced by the Pajero Manufacturing Co., Ltd. These automobiles are sold in Japan by Tokyo Mitsubishi Motor Sales Co. and other sales companies, and overseas by Mitsubishi Motor Sales of America, Inc. and Mitsubishi Motor Sales Europe B.V. (based in the Netherlands), among others. Mitsubishi trucks and buses are produced by MMC. In addition, Mitsubishi Automotive Bus Manufacturing Co., Ltd. produces bus bodies, while Pabco Co., Ltd. and others produce bodies for some truck models. Forged parts for trucks are produced mainly by Mitsubishi Motors Techno-Metal Co., Ltd. and supplied to MMC. Mitsubishi commercial vehicles are sold in Japan by Tokyo Mitsubishi Fuso Sales Co. and other truck and bus sales companies, and overseas by Mitsubishi Fuso Truck of America Inc. and other sales companies. Overseas, Mitsubishi vehicles are produced at Mitsubishi Motor Manufacturing of America, Inc. (United States), Netherlands Car B.V. (the Netherlands), Mitsubishi Motors Australia, Ltd. (Australia), MMC Sittipol Co., Ltd. (Thailand) and other manufacturing facilities. MMC supplies these manufacturers with some of the parts and components used. Accessory parts for the Japanese market are manufactured by MMC and are sold by the abovementioned sales companies, by Tokyo Mitsubishi Automotive Parts Sales Co., Ltd. and other parts sales companies. In addition, Mitsubishi Automotive Engineering Co., Ltd. undertakes some of the development of MMC automotive products, Mitsubishi Automotive Logistics Co., Ltd. undertakes the transport of Mitsubishi auto products in Japan, and Mitsubishi Motors Techno-Service Co., Ltd. is responsible for inspection and servicing of certain new Mitsubishi vehicles. Auto lease and financing services are provided by Mitsubishi Auto Credit & Lease Corporation in Japan and by Mitsubishi Motors Credit of America, Inc. in the United States. The MMC group structure and constituent company products and services outlined above are shown in the following diagram: 8

13 Assembly (Japan) Pajero Manufacturing Mitsubishi Automotive Bus Manufacturing Pabco Mitsubishi Automotive Techno-Metal Engineering & information systems (Japan) Mitsubishi Automotive Engineering MMC Computer Research MMC Systems Service Other related companies DaimlerChrysler AG Mitsubishi Heavy Industries Mitsubishi Motors Corporation Haulage / other services (Japan) Mitsubishi Automotive Logistics Mitsubishi Techno-Service Ryoto Estec Overseas production & sales Mitsubishi Motor Sales of America, Inc. Mitsubishi Motor Manufacturing of America, Inc. Mitsubishi Motors Europe B.V. Netherlands Car B.V. MMC Sittipol Co., Ltd. Mitsubishi Motors Australia, Ltd. Sales (Japan) Tokyo Mitsubishi Motor Sales Tokyo Mitsubishi Fuso Sales Tokyo Mitsubishi Auto Parts Auto finance Mitsubishi Auto Credit & Lease (Japan) Mitsubishi Motors Credit of America, Inc. (US) Customers Finished & semi-finished autos, parts Services, etc. 9

14 II Management policy 1. Basic management policy MMC s management policy stands on the following three principles: (1) To adopt the customer s viewpoint and win and retain long-running customer loyalty through excellence in product and service; (2) To be innovative with a global perspective; (3) To act with integrity as an open and clean corporation The following maxims have been adopted throughout the organization to ensure that we supply vehicles and services which inspire full confidence in our customers and that all work processes are reformed: Provide customers with products and service of the highest quality, allowing no room for compromise; Ensure that all corporate investments result in higher levels of customer satisfaction, and generate a profit; Conduct business in a fair and rational manner, and always in obedience with laws and regulations. 2. Management structure The Company has implemented major reforms in its management structure. In a step designed to speed up management and revitalize the board, the number of board directors was reduced and more seats given to outside directors. The Company has also introduced a system of Executive Officers. In June last year, the Company implemented major organizational changes designed to extract the full potential of both its car and its commercial vehicle divisions. These include steps to: Make corporate activities more global in nature Run the company on a consolidated operational basis Introduce new functions and concepts into management With these organizational reforms in place, the Company continues to implement, monitor and fine tune the Turnaround Plan that provides a roadmap to stable growth and the recovery of customer confidence and trust. 3. Policy on appropriation of surplus MMC considers returning profits to shareholders to be a management objective of the first order. The Company makes the maintenance of a stable dividend its first principle, giving due consideration to the need to achieve a balance between this and to securing sufficient funds for the future development of its business. Such funds are required for the development of new products, of environmental technologies and for the funding of other avenues that will enable the Company to maintain and boost its fighting strength in the increasingly competitive world markets. Company policy is to apportion the fruits of its operations to its shareholders, taking into account developments in the consolidated results. 4. Mid- and long-term management strategy MMC is implementing the Turnaround Plan as it builds up a strategic alliance with DaimlerChrysler (DC) and exploits to the full the synergies stemming from that alliance in both its car and commercial vehicle operations. 10

15 The Company is collaborating wholeheartedly with DC in win-win areas that promise mutual benefits and is focusing management resources on the core businesses and technologies that are vital for its continued existence and growth. 5. Issues to be addressed The Company has made a smooth start on the road to transformation, meeting and exceeding the break-even target laid down for the first year of Turnaround. The Company will persist in its efforts to attain the goals and targets set out by the Turnaround Plan. The following are the principal areas to which the Company is currently applying its energies. a. Products Promotion of customer-focused management and reforms in the corporate culture Continuing the MMC tradition of building high-quality vehicles by expanding use of Quality Gate System quality control Streamlining the number of platforms used in Mitsubishi models; promoting co-sharing and commonality with DC Making greater efforts to improve the environmental performance of Mitsubishi products fuel efficiency, emissions and recycling included Ensuring the success of the new strategic global compact model b. Sales organization Providing customers with the highest levels of service by forming closer and stronger ties with sales companies c. Management efficiencies Early achievement of the following FY2003 targets: 15% reduction in material costs; 14% reduction in headcount (9,500 persons); a 28%+ reduction in production capacity Greater focusing of management resources on core business through more outsourcing of non-core operations Promoting process efficiencies, sharing of customer and management data, stronger internal communications, and SCM (supply-chain management) by building up the corporate IT infrastructure Entering new markets by utilizing DC alliance The Company is making every effort possible to ensure that the new strategic global compact model due for introduction in Japan this fall embodies the highest levels of quality and competitiveness. The Company is confident that the success of this new model will add further impetus to the effectiveness of the Turnaround Plan. The Company is also looking at potential areas for collaboration with DC in its truck and bus operations, these including the introduction of a new light-duty truck, and engine and vehicle development. 11

16 1. Consolidated results Overview of consolidated results in fiscal 2001 III Consolidated results & cash flows The world economy in fiscal 2001 was clouded by a global recession stemming from the collapse of the IT-bubble and compounded by concern about the impact of the September 11 terrorist attacks in the United States. These worries were tempered towards the end of fiscal 2001, however, with glimpses of progress being made in inventory adjustments and other encouraging economic indices pointed towards recovery, chiefly in the United States and the countries of Asia. The Japanese economy, meanwhile, continued to struggle as capital spending declined, unemployment rose and as personal consumption and stock prices remained at depressed levels. The Japanese automotive industry in fiscal 2001 saw total vehicle sales of 5,820,000 units, a decrease of 3% over fiscal This was due to the weakening in consumer purchasing sentiment caused, in part, by the September terrorist attacks. Sales of domestically produced vehicles were 5,550,000 units, 3% down on fiscal Sales of imported vehicles were 270,000 units, 1% down. Japan s auto makers exported 4,250,000 vehicles in fiscal 2001, 3% down on the previous year. In this market environment, MMC introduced several new models with distinctive personalities and worked to strengthen and improve its sales and after-sales service organization in order to reflect better the needs and the requirements of the customer. For fiscal 2001, the Company reports consolidated sales volume of 1,405,000 vehicles, 2.7% down on fiscal 2000, and sales revenue of 3,200.7 billion, 2.3% down. Lower vehicle sales in Japan and Europe were countered to an extent by strong sales in Asia and other countries. Profits earned by the Company in fiscal 2001 were: operating profit of 40.2 billion, ordinary income of 11.9 billion and net income of 11.3 billion. These profits were the result of far-reaching reforms implemented in the corporate organization and culture. These profits also stem from the efforts made by the MMC group of companies to achieve the targets set forth in the Mitsubishi Motors Turnaround Plan, which, introduced in April 2001, provides the roadmap for returning the group to profitability and to setting it back on the road to growth. The Company also broke even in its consolidated net income, a major Turnaround target for fiscal Segment information (1) By business Sales from the automotive business for fiscal 2001 were 3,106.4 billion, producing an operating profit of 49.9 billion. Revenues from financial services business were 99.3 billion, producing an operating loss of 5 billion. (2) By geographical region Sales in Japan were 2,198.8 billion, a decrease of billion over fiscal Operating profit was 22.8 billion, an improvement of 84 billion. Sales in North America were billion, a decrease of 14.5 billion over fiscal Operating profit stood at 45.5 billion, an increase of 12 billion. Sales in Europe were billion, an increase of billion over fiscal Operating loss was 18 billion, an improvement of 12.3 billion. Sales in Asia were billion, an increase of 4.8 billion over fiscal Operating profit was 500 million, an improvement of 2.4 billion. 12

17 Sales in other regions were billion, a decrease of 1.9 billion over fiscal Operating loss was 2.3 billion, an improvement of 6.8 billion. 3. Dividend payment MMC regrets to announce that it intends once again to defer payment of year-end dividend. The Company apologizes sincerely to its shareholders and asks for their continuing understanding and patience. 4. Cash flows Net cash provided by operating activities in fiscal 2001 was 92 billion. Net cash used on the acquisition and disposal of tangible fixed assets in investment activities was 4.9 billion. Net cash used in financing activities was billion as a result of outlays for repayment of loans and redemption of bonds. The year-end balance of cash and cash equivalents was 95.2 billion, a decrease of 20.7 billion on fiscal Consolidated forecast for fiscal 2001 It is generally considered that any recovery in personal consumption seen in the Japanese economy in fiscal 2002 will be very limited in scope as the employment market remains depressed. In the automotive industry, with little prospect of any expansion in market size, the Company expects to be operating in a difficult business environment, with competition intensifying and with increasing demands for the industry to address environmental and other social issues speedily and efficiently. While fluctuations in the major currencies, price reductions required by intensifying market competition, the degree to which domestic consumption in Japan will recover and other factors make accurate forecasting difficult, the Company offers the following forecast for its consolidated operations in fiscal 2002, based on data and information currently available. Consolidated forecast FY2002 Million Yen Sales Ordinary income Net income 2002FY full year 3,400,000 48,000 38,000 13

18 Non-consolidated Financial Results for FY2001 (1 April 2001 through 31 March 2002) Mitsubishi Motors Corporation Code No: 7211 Listed on: Tokyo, Osaka, Nagoya, Fukuoka, Kyoto and Sapporo stock exchanges Head office: Contact: Tokyo Makoto Akashi, Expert Corporate Communications Department Meeting of Board of Directors for FY2001 financial results: Ordinary general shareholders meeting: Provision for interim dividends: Unit shares adopted: Tel: URL: 13 May June 2002 Provision exists Yes 13 May Non-consolidated financial highlights (1 April 2001 through 31 March 2002) (1) Non-consolidated financial results Sales Operating profit Ordinary income Million yen % Million yen % Million yen % FY2001 1,848, ,701 4,725 FY2000 2,012, ,266 82,350 Net income Net income per share basic Net income per share diluted Return on shareholders equity Ratio of ordinary income to total assets Ratio of ordinary income to sales Million yen % Yen Yen % % % FY , FY , Note 1: Average number of shares issued and outstanding during term: FY2001 FY2000 1,470,163,352 1,194,900,457 Note 2: There have been changes in accounting policy since the last closing. Note 3: Sales, operating profit, ordinary income and net income percentages indicate changes over previous fiscal year. (2) Cash dividends Cash dividend per share Interim Year-end Annual cash dividends total Dividend payout ratio Dividends total to shareholders equity ratio Yen Yen Yen Million yen % % FY FY (3) Non-consolidated financial position Total assets Shareholders equity Ratio of shareholders equity Shareholders equity per share Million yen Million yen % Yen FY2001 1,599, , FY2000 1,797, , Note 1: Number of shares issued and outstanding at year-end: FY2001 FY2000 1,470,163,263 1,470,163,624 Note 2: Number of treasury shares at year-end: FY FY2002 financial results forecast Sales Ordinary income Net income Dividend per share Interim Year-end Million yen Million yen Million yen Yen Yen Yen Half year 0.00 Full term 1,900,000 10,000 7, FYI: Forecast net income per share for full term:

19 CAUTION. These forecasts are based on judgments and estimates that have been made on the basis of currently available information and are subject to a number of risks, uncertainties and assumptions. Changes in the company s business environment, in market trends and in exchange rates may cause actual results to differ materially from these forecasts. 1. Sales figures 1. Sales volume Passenger cars (regular & small-size) 1 April March April March 2001 Domestic Export Total Domestic Export Total Units Change in total 144, , , , , , ,103 Mini vehicles 260, , , ,172 12,496 Trucks 58,615 25,280 83,895 56,817 32,968 89,785 5,890 Buses 3,916 2,874 6,790 3,894 2,268 6, TOTAL 467, , , , , , ,869 Millions of Yen 2. Sales Vehicle sales 690, ,844 1,303, , ,594 1,443, ,134 Parts for overseas production Parts, accessories & others 264, , , ,647 10, , , , , , ,528 13,049 TOTAL 834,781 1,013,903 1,848, ,704 1,132,986 2,012, ,006 15

20 2. Profit and loss statements (1 April March 2002) Millions of Yen FY2001 FY2000 Change Ordinary income and expenses Sales... 1,848,684 2,012, ,006 Cost of sales... 1,595,738 1,840, ,219 Selling, general and administrative expenses , ,000 20,755 Operating profit 16,701 85, ,967 Non-operating income... (12,625) (18,823) ( 6,198) Interest and dividends income... 8,884 7,712 1,172 Gain on sale of investment securities... 6,239 6,239 Gain on foreign exchange... 4,803 4,803 Other Income... 3, ,673 Non-operating expenses... (24,600) (15,906) (8,694) Interest expenses... 8,524 9, Loss on foreign exchange... 11,652 11,652 Other expenses... 4,422 6,557 2,135 Ordinary income 4,725 82,350 87,075 Extraordinary gain and loss Extraordinary gain... (4,700) (2,789) (1,911) Gain on sale of fixed assets Gain on sale of investments in subsidiaries... 1,599 1, Other gains 3,100 3,100 Extraordinary loss... (84,304) (387,895) ( 303,591) Early retirement program expenses 14,137 14,137 Provision for doubtful receivables to subsidiaries... 51,268 51,268 Provision for retirement benefits , ,975 Provision for recall expenses of products... 50,652 50,652 Provision for losses on restructuring... 42,886 42,886 Provision for guarantees liability , ,636 Loss on appraisal of investments in subsidiaries... 10,455 41,754 31,299 Other losses... 8,444 16,989 8,545 Income before income taxes 74, , ,578 Income tax, current Income tax, deferred ( indicates reduction)... 4, , ,190 Net income 70, , ,388 Retained earnings brought forward from previous period ,397 20, ,427 Unappropriated retained earnings at end of period 406, ,867 70,039 *Consequent to adoption of inter-period income tax allocation 3. Proposed disposition of losses Millions of yen FY2001 FY2000 Change Accumulated loss at end of year , ,867 70,039 Reversal of special depreciation reserve Reversal of overseas investments loss reserve Reversal of reserve for deferred gains on fixed assets 5, ,541 Total 401, ,004 65,538 Disposition proposed as follows Reserve for special depreciation Reserves for deferred gains on fixed assets Accumulated loss to be carried forward to next period , ,397 65,194 N.B. The special depreciation reserve, overseas investments loss reserve and reserve for deferred gains on fixed assets are in accordance with the Special Taxation Measures Law. 16

21 4. Balance sheets (Assets) Millions of Yen Assets At 3/31/02 At 3/31/01 Change Current assets , , ,021 Cash on hand and in banks... 27,825 22,454 5,371 Notes receivable... 2,843 3, Accounts receivable , ,228 95,217 Marketable securities... 11,000 11,000 Finished products... 53,836 72,167 18,331 Raw materials and supplies... 12,431 12, Work in process... 61,144 68,821 7,677 Prepaid expenses... 2, ,393 Deferred tax assets... 50,749 90,447 39,698 Short-term loans receivable , ,850 18,926 Accounts receivable... 79,446 81,083 1,637 Other current assets... 52,938 27,317 25,621 Allowance for doubtful accounts... 95,225 6,976 88,249 Fixed assets , ,151 13,322 Tangible fixed assets... (397,236) (455,239) ( 58,003) Buildings... 72,702 76,851 4,149 Structures... 17,223 18,469 1,246 Machinery and equipment , ,158 15,257 Transportation equipment... 3,564 2, Tools, furniture and fixtures land... 13,796 15,069 1,273 Land , ,027 32,477 Construction in progress... 5,497 9,716 4,219 Intangible fixed assets... (8,754) (7,153) (1,601) Intangible fixed assets... 8,754 7,153 1,601 Investments... (583,481) (513,758) (69,723) Investment securities , ,437 8,737 Investments in subsidiaries , ,290 36,675 Long-term loans receivable... 3,744 4, Miscellaneous investments and guaranty money... 35,438 37,629 2,191 Long-term prepaid expenses... 6,757 7, Deferred tax assets... 54,236 8,963 45,273 Other investments... 3,705 10,292 6,587 Allowance for doubtful accounts... 4,066 11,172 7,106 Total assets 1,599,566 1,797, ,699 17

22 5. Balance sheets (Liabilities & shareholders equity) Millions of Yen Liabilities & shareholders equity At 3/31/02 At 3/31/01 Change Current liabilities , ,153 53,161 Notes payable... 21,426 24,206 2,780 Accounts payable , ,777 48,260 Short-term loans payable , ,909 44,718 Commercial paper... 12,100 12,100 Corporate bonds (one year or less) ,094 39,700 60,394 Other accounts payable... 92, ,949 36,405 Corporation taxes payable Accrued expenses... 22,203 22, Advance received... 11,823 1,379 10,444 Deposits received... 76,843 65,218 11,625 Employees savings deposits... 14,626 17,790 3,164 Warranty claims allowance... 27,297 27, Other current liabilities... 12,138 7,221 4,917 Fixed liabilities , , ,896 Bonds , , ,094 Long-term loans payable... 63,838 76,650 12,812 Deposit received for guarantee... 14,134 14, Retirement benefit reserve , ,482 29,579 Guarantee liability reserve... 96, ,636 35,744 Total liabilities 1,286,882 1,412, ,736 Shareholders equity , ,647 71,964 Common stock , ,201 Statutory reserves , ,846 Capital surplus , ,816 Legal reserve... 9,029 9,029 Earned surplus ( indicates net loss) , ,050 70,509 Special depreciation reserve Overseas investments loss reserve... 1,855 1, Reserve for deferred gains of fixed assets... 23,438 23, Special reserve , ,000 Unappropriated retained earnings at end of year , ,867 70,039 (of which net income for year)... ( 70,509) ( 356,897) (286,388) Profits on securities... Treasury shares... 34,195 35,649 1, Total liabilities & shareholders equity 1,599,566 1,797, ,699 18