1. Financial highlights (1 April 2002 through 31 March 2003)

Transcription

1 Non-consolidated Financial Results for FY May 2003 Mitsubishi Motors Corporation Listed on: Tokyo, Osaka, Nagoya, Fukuoka, and Sapporo stock exchanges Code No: 7211 Head office: Tokyo URL http//: Representative: Rolf Eckrodt, President & CEO Contact: Yoichi Yokozawa, Head of Investor Relations Office Tel: Meeting of Board of Directors for FY2002 financial results: 26 May 2003 Provision for interim dividends: Provision exists Ordinary general shareholders meeting: 25 June 2003 Unit shares adopted: Yes 1. Financial highlights (1 April 2002 through 31 March 2003) (1) Non-consolidated financial results Sales Operating Profit Ordinary Income Million yen % Million yen % Million yen % FY2002 1,877, , , FY2001 1,848, ,701 4,725 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 % % % FY2002 2, FY , Note 1: Average number of shares issued and outstanding during term: FY2002 1,473,719,843 FY2001 1,470,163,352 Note 2: There have been no changes in accounting policy since the last closing. Note 3: Sales, operating income and ordinary 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 Yen Yen Yen Million yen % ratio % FY FY (3) Non-consolidated financial position Total assets Shareholders equity Ratio of shareholders Shareholders equity per share equity Million yen Million yen % Yen FY2002 1,344, , FY2001 1,599, , Note 1: Number of shares issued and outstanding at year-end FY2002 1,483,434,189 FY2001 1,470,163,263 Note 2: Number of treasury shares at year-end: FY2002 4,745 FY FY2003 financial results forecast Sales Ordinary income Net income Interim Dividend per share Year-end Million yen Million yen Million yen Yen Yen Yen Half year 740,000 7,000 3,000 Undecided Full year 1,570,000 30,000 10,000 Undecided Undecided FYI: Forecast net income per share for full year: 6.74 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.

2 1. Sales figures (Vehicles) 1. Sales volume Passenger cars (regular & small-size) 1 April March April March 2002 Change in total Domestic Export Total Domestic Export Total Domestic Export Total 122, , , , , ,607 21, ,138 82,560 Mini vehicles 219, , , ,668 41,299 41,299 Trucks 42,539 25,678 68,217 58,615 25,280 83,895 16, ,678 Buses 2,597 2,841 5,438 3,916 2,874 6,790 1, ,352 Total 387, , , , , ,960 80, ,503 24,231 <44.3 %> <55.7 %> <100.0%> <55.0%> <45.0%> <100.0%> Note: Figures in < > indicate ratio of exports to domestic sales volume 2. Sales 1 April March April March 2002 Change in total Domestic Export Total Domestic Export Total Domestic Export Total Vehicle sales 545, ,310 1,329, , ,844 1,303, , ,466 25,676 Parts for overseas production Parts, accessories & others Total 272, , , ,824 7,811 7, , , , , , ,479 20,686 15,791 4, ,305 1,207,971 1,877, ,781 1,013,903 1,848, , ,068 28,592 <35.7%> <64.3 %> <100.0 %> <45.2 %> <54.8%> <100.0%> Note: Figures in < > indicate ratio of exports to domestic sales

3 2. Statements of income (1 April March 2003) (JPY millions ) FY2002 FY2001 Change Ordinary income and expenses Sales... 1,877,276 1,848,684 28,592 Cost of sales... 1,586,724 1,595,738 9,014 Selling, general and administrative expenses , ,245 4,182 Operating profit 50,123 16,701 33,422 Non-operating income... (15,254) (12,625) (2,629) Interest and dividends income... 14,722 8,884 5,838 Other Income ,740 3,209 Non-operating expenses... (17,620) (24,600) ( 6,980) Interest expenses... 8,913 8, Loss on foreign exchange... 11,652 11,652 Other expenses... 8,707 4,422 4,285 Ordinary income 47,756 4,725 43,031 Extraordinary gain and loss Extraordinary gain... (29,666) (4,700) (24,966) Gain on sale of investment securities... 15,065 15,065 Gain on sale of shares of subsidiaries... 9,200 1,599 7,601 Gain on exchange of investment securities... 1,399 1,399 Other gains... 4,000 3, Extraordinary loss... (55,328) (84,304) ( 28,976) Loss on disposal of fixed assets... 4,133 4,133 Valuation loss on investment securities... 10,059 10,059 Valuation loss on shares of subsidiaries... 33,159 10,455 22,704 Extraordinary measure expenses... 5,099 5,099 Early retirement expenses... 14,137 14,137 Provision for irrecoverable loans to subsidiaries... 51,268 51,268 Other losses... 2,876 8,444 5,568 Income before income taxes 22,094 74,878 96,972 Income tax, current Income tax, deferred ( indicates reduction)... 24,478 4,429 28,907 Net income 2,649 70,509 67,860 Retained earnings brought forward from previous period 401, ,397 65,194 Unappropriated retained earnings at end of period 404, ,906 2,666

4 3. Proposed disposition of losses (JPY millions ) FY2002 FY2001 Change Accumulated loss at end of period , ,906 2,666 Reversal of overseas investments loss reserve Reversal of reserve for deferred gains on fixed assets... 5,331 5,331 Total 404, ,542 2,698 Disposition proposed as follows; Reversal of special reserve , ,000 Reversal of special depreciation reserve Reversal of overseas investment loss reserve... 1,822 1,822 Reversal of reserves for deferred gains on fixed assets... 18,147 18,147 Reversal of legal reserve... 9,029 9,029 Reversal of capital surplus , ,179 Special depreciation reserve Reserves for deferred gains on fixed assets Accumulated loss to be carried forward to next period 401, ,591

5 4. Balance sheets (Assets) Assets (JPY millions ) At 31/3/2003 At 3/31/2002 Change Total assets... 1,344,817 1,599, ,749 Current assets , , ,028 Cash on hand and in banks... 27,127 27, Notes receivable ,843 1,969 Accounts receivable , ,011 55,652 Finished products... 32,412 53,836 21,424 Raw materials and supplies... 11,002 12,431 1,429 Work in process... 53,596 61,144 7,548 Advance payments Prepaid expenses... 5,003 2,314 2,689 Deferred tax assets... 37,431 50,749 13,318 Short-term loans receivable... 26, ,776 94,119 Accounts receivable... 76,807 79,446 2,639 Other current assets... 75,915 52,938 22,977 Allowance for doubtful accounts... 33,666 95,225 61,559 Fixed assets , , ,721 Tangible fixed assets total... (262,749) (397,236) ( 134,487) Buildings... 48,971 72,702 23,731 Structures... 12,041 17,223 5,182 Machinery and equipment... 66, ,901 39,280 Transportation equipment... 3,330 3, Tools, furniture and fixtures... 10,699 13,796 3,097 Land , ,550 61,932 Construction in progress... 4,467 5,497 1,030 Intangible fixed assets total... (10,617) (8,754) (1,863) Intangible fixed assets... 10,617 8,754 1,863 Investments total... (572,385) (583,481) ( 11,096) Investment securities , ,700 69,560 Investments in subsidiaries , ,965 48,811 Long-term loans receivable... 2,520 3,744 1,224 Miscellaneous investments and guaranty money... 36,333 35, Long-term prepaid expenses... 5,819 6, Deferred tax assets... 21,477 54,236 32,759 Other investments... 3,977 3, Allowance for doubtful accounts... 2,159 4,066 1,097 Total assets... 1,344,817 1,599, ,749

6 5. Balance sheets (Liabilities & shareholders equity) Liabilities & shareholders equity Millions of Yen 31/3/2003 3/31/2002 Change Total Liabilities... 1,032,471 1,286, ,411 Current liabilities , , ,889 Notes payable... 18,360 21,426 3,066 Accounts payable , ,517 91,880 Short-term loans payable , ,627 10,266 Commercial paper... 74,700 12,100 62,600 Corporate bonds (one year or less)... 48, ,094 51,394 Other accounts payable... 71,755 92,544 20,789 Corporation taxes payable Accrued expenses... 20,481 22,203 1,722 Advances received... 22,495 11,823 10,672 Deposits received... 28,910 76,843 47,933 Employees savings deposits... 9,707 14,626 4,919 Warranty claims allowance... 28,089 27, Other current liabilities... 9,754 12,138 2,384 Fixed liabilities , ,568 94,523 Bonds... 54, ,800 49,300 Long-term loans payable ,491 63,838 59,653 Deposit received for guarantee... 10,258 14,134 3,876 Retirement benefit reserve... 91, ,903 37,647 Guarantee liability reserve... 33,538 96,892 63,354 Shareholders equity , , Common stock , ,201 Statutory reserves , ,816 4,411 Capital surplus , ,816 4,411 Earned surplus ( indicates net loss) , ,530 2,649 Legal reserve... 9,029 9,029 Special depreciation reserve Overseas investments loss reserve... 1,822 1, Reserve for deferred gains of fixed assets... 18,147 23,438 5,291 Special reserve , ,000 Unappropriated retained earnings at end of year , ,906 2,666 (of which net income for year)... ( 2,649) ( 70,509) (67,860) Profits on securities... 32,097 34,195 2,098 Treasury shares Total liabilities & shareholders equity 1,344,817 1,599, ,749

7 1 Significant accounting policies (1) Marketable securities: basis and method of valuation Notes on accounting policies Shares in subsidiaries and affiliates... At cost using the moving-average method Other marketable securities With market value... At market, based on market value on date of book-closing. (Net unrealized gain/loss booked directly to Shareholders equity. Selling cost is computed by the moving-average method.) Without market value... At cost by the moving-average method (2) Derivative instruments... Valued at market (specially booked Interest Swaps excluded) (3) Inventories: basis and method of valuation Finished products & work in process:... Raw materials... Primarily on first-in first-out basis. At cost using the overall average method (4) Depreciation of fixed assets Tangible fixed assets... Intangible fixed assets... Small fixed assets... (5) Foreign currency transactions Declining balance method. Buildings (excluding fixtures and attached facilities) acquired after 1 April 1998 are computed by the straight-line method. Straight line method. Software is depreciated using the straight line method based on a useable life of 5 years. Assets with an acquisition cost of over JPY 100,000 but less than JPY 200,000 are amortized by the straight-line method over a 3-year period. Foreign currency assets and liabilities are translated into yen at the exchange rate on the day of interim book-closing. Differences are booked as gains or losses. (6) Allowances: accounting standards Doubtful accounts... Warranty claims... Accrued severance indemnities... Providing against possible losses arising from accounts and loans receivable, a doubtful account allowance is included in the Balance Sheet calculated on the basis of historical data for general claims, and on the basis of individual estimates of specific claims thought to be uncollectible. Providing against future after-sales service costs and expenses, a warranty claims allowance is included in the Balance sheet calculated on the basis of past experience in line with warranty terms. Accrued retirement benefits for employees at March have been provided mainly at an amount calculated based on the retirement benefit obligation and the fair value of the pension plan assets.. The full amount of the transition difference arising from the adoption of the new accounting standard for retirement benefits was charged to expenses in the first year the new accounting standard was adopted Prior service cost is being amortized by the straight-line method over a 10-year period that is within the estimated average remaining service years of the employees. Actuarial gain and loss that arise are amortized the following fiscal year using the straight-line method over a 10-year period that is within the es-

8 Guarantee liabilities... timated average remaining service years of the employees. Directors and auditor severance benefits are provided at the amount estimated necessary at book-closing based on the internal regulations of the Company Providing against losses arising from execution of guarantee, a guarantee liability allowance calculated on a rational estimate basis is included in the Balance Sheet. (7) Lease transactions... Finance leases, excluding leases in which ownership is recognized to have transferred to the lessee, are booked in accordance with normal lease accounting procedures. (8) Consumption tax... Consumption tax and regional consumption taxes are excluded from the income and expenses figures. (9) Major hedge accounting basis Forward exchange contracts... Scheduled transactions are booked using deferral accounting. Interest swaps... Supplemental information Booked using deferral accounting or specially booked as provided for in the Accounting Standard for Financial Products. (1) From this reported period, the company has adopted the Accounting Standard relating to Disposition of Treasury Stock and Required Reserves (Japanese Business Accounting Standard 1). This change has no significant effect on income. (2) Following a revision of the Regulations Concerning the Terminology, Forms and Preparation Methods of Financial Statements, the Stockholders equity in the Balance Sheet for the period have been prepared in accordance with the revised regulations. The presentation of figures for Last Interim Period and Last FY has also been changed in accordance with the revised regulations. 2. Notes to financial statements Balance Sheet (1) Accumulated depreciation of tangible fixed assets ,304 million (2) In addition to the fixed assets reported in the balance sheet, major leased assets include certain plant and equipment used in automotive production, dies used in automotive production and computers. (3) Accounts receivable from or payable to subsidiaries Short-term receivables... Long-term receivables... Short -term payables... Long-term payables ,641 million 313 million 58,755 million 51,641 million (4) Miscellaneous Investments and Guaranty Money includes investments in subsidiaries of 246 million. (5) Contingent liabilities for loan guarantees Guarantee liabilities... Guarantee liability equivalents ,837 million 38,270 million (6) Assets subject to lien... 77,271 million

9 (7) Major assets and liabilities in foreign currencies Accounts receivable... 70,158million (Including US$ 292 million) Short-term loans... 25,833 million (Including Euro 210 million) Investment securities... 56,944 million (Including NT$ 14,584 million) Investments in subsidiary stock ,984 million (Including US$1,387 million) (8) Earnings per share for current fiscal year (9) The amount of the JPY 623 million provision for directors and statutory auditors in the Accrued severance indemnities allowance and the amount of the Loan guarantee allowance are in accordance with article 287-(2) of the Commercial Code. (10) Transfer balance after liquidization of accounts receivable... 43,780 million (11) Net assets after addition of market valuation gains... 30,669 million (12) Capital deficit ,210 million Statements of income (1) Transactions with subsidiaries Sales to subsidiaries... Purchases from subsidiaries... Non-operating transactions with subsidiaries... 1,136,395 million 202,839 million 13,471 million (2) R&D expenditure included in sales and general administration costs... 53,992 million (3) Other gains under Extraordinary gains in the Statements of Income include a JPY 2,575 million gain reversal of allowance made for Costs related to Restructuring of Production Organization carried out in FY2000. (4) Extraordinary measure expenses in the Statements of Income relate to expenses relating to safety inspection measures voluntarily carried out by MMC on wheel hubs of Mitsubishi Fuso heavy-duty trucks.

10 Lease transactions 1. As lessee (1) Finance lease transactions, excluding leases where ownership has transferred to borrower a. Assumptive acquisition cost, assumptive accumulated depreciation and assumptive book value of lease assets 2002FY 2001FY (1) Assumptive acquisition cost Tools, furniture and fixtures... 42,489 58,606 Machinery... 1,053 12,715 Others... 7,328 9,332 Total 50,872 80,654 (2) Assumptive accumulated depreciation Tools, furniture and fixtures... 25,529 40,289 Machinery ,804 Others... 2,491 3,405 Total 28,403 49,499 (3) Assumptive book value Tools, furniture and fixtures... 16,960 18,316 Machinery ,911 Others... 4,837 5,926 Total 22,468 31,154 b. Leases payable at end of fiscal year 2002FY 2001FY Due within a year... 10,499 15,250 Due over a year... 17,930 27,841 Total 28,430 43,092 c. Lease payments, assumptive depreciation expense and assumptive interest expense for fiscal year 2002FY 2001FY Lease payments... 15,132 18,889 Assumptive depreciation expense... 12,757 15,449 Assumptive interest expense... 1,129 1,717 d. Depreciation is principally computed using the declining balance method taking residual value as zero and lease term as useful life. e. Interest expenses are taken as the difference between total lease amount and lease acquisition price and are allocated to different settlement terms using the interest method. (2) Operating lease transactions a. Future minimum lease payments 2002FY 2001FY Due within a year Due over a year... 2,636 3,356 Total 3,356 4, As lessor (1) Operating lease transactions a. Future minimum lease payments 2002FY 2001FY Due within a year Due over a year ,232 Total 1,232 1,492

11 Marketable securities MMC has no shares with fair value in subsidiaries or affiliates for either the previous or current fiscal years. Tax effect accounting 1. Breakdown of deferred tax assets and deferred tax liabilities Deferred tax assets Share appraisal loss... 90,531 Excess over severance benefit allowance loss inclusion... 30,537 Accounts payable (guarantee work expenses)... 18,539 Unrealized gains in shares... 18,030 Contingent liabilities for loan guarantees allowance... 15,733 Doubtful accounts allowance... 12,021 Other deferred tax assets... 24,147 Sub-total 209,538 Valuation allowance ,651 Deferred tax asset total 80,887 Deferred tax liabilities Profits on securities... 21,757 Other deferred tax liabilities Deferred tax liability total 21,979 Net deferred tax assets... 58, Differences between effective tax rates and statutory tax rates (%) Statutory tax rate (Adjustments) Downward revision of year-end deferred tax assets after booking valuation allowance Splitting off of Mitsubishi Fuso Truck & Bus Company Change in tax rate Non-inclusion of gains on dividends received Splitting off of Diamondmatic Co., Ltd Other adjustments Corporate tax burden after application of tax effect accounting

12 Changes to management (1) Company nominees for election as Members of the Board. Keiichiro Hashimoto (Formerly General Manager, International Business Division, The Bank of Tokyo-Mitsubishi, Ltd) Rüdiger Grube (Currently Member of the Board of Management, DaimlerChrysler AG (Corporate Development)) (2) Members of the Board scheduled to retire Junji Midorikawa Masanori Tani (3) Company nominee for election as Statutory Auditor Nobuo Kuroyanagi (Currently Deputy President, The Bank of Tokyo-Mitsubishi, Ltd.) (4) Statutory Auditor scheduled to retire Shigemitsu Miki (5) Company nominees for re-election as Members of the Board and Statutory Auditor Takashi Sonobe Rolf Eckrodt Steven A. Torok Ulrich W. Walker Eiji Iwakuni Keiichiro Hashimoto Chairman of the Board and Member of the Board President and Member of the Board Executive Vice President, Member of the Board Executive Vice President, Member of the Board Executive Vice President, Member of the Board Executive Vice President, Member of the Board (Representative director) (Representative director) (Representative director) (Representative director) (Representative director) (Representative director) Manfred Bischoff Member of the Board (Non-executive director) Rüdiger Grube Member of the Board (Non-executive director) Takashi Nishioka Member of the Board (Non-executive director) Mikio Sasaki Member of the Board (Non-executive director) Mitsugu Nakabayashi Hirao Iijima (Full-time) Statutory Auditor (Full-time) Statutory Auditor Motoo Makita Statutory Auditor (Outside Statutory Auditor) Nobuo Kuroyanagi Statutory Auditor (Outside Statutory Auditor)