Presentation - Mitsubishi Motors

Mitsubishi Motors Mid-term Business Plan
FY 2011－2013
“Jump 2013”
Jan. 20th, 2011
1
Contents
Reviewing “Step Up 2010”
Improving the Quality Level
Outlook of Business Conditions
Reforming the Cost Structure
Positioning of the New Mid-term
Alliance Strategy
Business Plan(FY2011-FY2013)
Profit Targets
Focus of “Jump 2013”
Capital Expenditure, R&D Expenditure
Sales Volume Targets
Financial Strategy
Product Strategy
Compliance and CSR Activities
Regional Strategy
Environmental Initiative Program 2015
Global Production Structure
2
Reviewing “Step Up 2010”
Building the foundation of growth
Target
Target at
at the
the time
time of
of
announcement
announcement
Status
Status of
of achievement
achievement
Decrease in total demand,
shift in demand structure and
Securing
steady
profit
sudden appreciation of yen
Adjusted sales volume & profit target
Bolstering
our
strength
Securing
steady
profit
Steady accomplishments
・ Introduction of environmental technologies （New Generation
Electric Vehicle “i-MiEV” ）
・ Launching of global strategic model （New Compact SUV）
・ Expansion of business alliances （PSA Peugeot Citroën and
Nissan）
・ Business expansion in emerging markets （JV in China)
Bolstering
our
strength
3
Outlook of Business Conditions
Market demand
by region
Economic
Economic outlook
outlook
Growing presences of China and other
emerging markets
68
83
(million units)
68
Emerging
markets
Continuation of instable environment in
mature markets
Mature
markets
Oil/Resource price to stay high
Increased environmental consciousness /
increased frequency of extreme weather
Demand
Demand forecast
forecast
CY2007
CY2010
CY2013
83
68
Market demand
by segment
68
(million units)
Below Csegment
Expansion of global demand driven
by emerging markets
Emerging market’s share to grow up to 1/2
in 2013 from 1/3 in 2007
Compact cars below C-segment to take
the lead role in the market expansion
Above Dsegment
CY2007
CY2010
CY2013
(Passenger vehicles + light commercial vehicles, ex. heavy commercial vehicles)
Source: Global Insight
Positioning of the New Mid-term Business Plan (FY2011-FY2013)
FY2005～FY2007
FY2008～FY2010
FY2011～FY2013
““Mitsubishi
Mitsubishi Motors
Motors
Revitalization
”
Revitalization Plan
Plan”
““Step
Step Up
”
Up 2010
2010”
““Jump
Jump 2013
”
2013”
Growth
Growth and
and Leap
Leap forward
forward
Building
Building solid
solid profitability
profitability
Building
Building the
the
foundation
foundation of
of growth
growth
Lehman shock
Restore earnings
Recovering trust
Bolstering our strength
Securing steady profit
Emerging markets/
environmental initiatives
Raising the bar on profit level
4
Focus of Jump 2013
Basic Policy
““Growth
Growth and
”
and Leap
Leap forward
forward”
Business Strategy
・ Concentrate business resources in emerging markets
& environmental initiatives
( R&D )
Strengthening global strategic models/eco
-car models
models/eco-car
( Production ) Increasing production capacity in emerging markets while
adjusting it to natural demand in mature markets
( Sales )
Fortifying involvement in sales business in emerging
emerging markets
markets
・ Reforming the cost structure
・ Pursuing business alliance opportunities for profit increase
・ Reinforcing business foundation
(( Financial
ance activities
Financial ground,
ground, Human
Human Resources,
Resources, product
product quality,
quality, CSR/compli
CSR/compliance
activities ))
5
6
Sales Volume Targets
Expanding
e markets
Expanding sales
sales in
in emerging
emerging markets
markets && stabilizing
stabilizing sales
sales in
in matur
mature
markets
＜Retail sales＞
1,370
1,124
China
1,000
Russia
Emerging
markets
Mature
markets
（000 units）
ASEAN
Oceania
Europe*1
N. America
Brazil
Japan
FY2010
Forecast
Currentcount
FY2010
Forecast
Renewedcount
※1 Excluding Russia, Ukraine, Kazakhstan
※2 Change in counting method: excluding models that are not under Mitsubishi brand
FY2013
Target
Renewedcount
7
Product Strategy
EV/PHEV
Green Technology
”
EV/PHEV Technology
Technology && ““Green
Technology”
Enhancing
Enhancing Global
Global Strategic
Strategic Models
Models
~~ Emerging
Emerging Markets
Markets as
as the
the Focal
Focal Point
Point ~~
MITSUBISHI Concept Global Small
Product Strategy ~ EV/PHEV Technology & “Green Technology” ~
※
EV/PHEV
Shiftingto
toElectric
ElectricEnergy
Energy]]
EV/PHEV※ Technologies
Technologies [[Shifting
Expansion of EV/PHEV
Global rollout of i-MiEV
Expanding the EV lineup
New introduction and expansion of PHEV
Providing EV technologies to others
※ Electric Vehicle and Plug-in-hybrid vehicles
-based Energy
Improving
Green Technology
” [[Conserving
ConservingOil
Oil-based
Energy]]
Improving ““Green
Technology”
Improving the existing technologies ( IC engine, etc )
New introduction of Hybrid model
Advancing gasoline/clean diesel based engine
(Expanding idling-stop system usage, next-generation MIVEC engine, etc)
Lightweighting the car body
8
Product Strategy ~ EV/PHEV Technology & “Green Technology” ~
EV/PHEV
EV/PHEV Technology
Technology
Launching total of 8 electric vehicles/plug-in hybrid vehicles by FY 2015
FY2011
Commercial mini EV
FY2012
FY2013
FY2014-15
EV
PHEV
EV
PHEV
(MINICAB-MiEV)
PHEV
PHEV
PHEV
““Green
Green Technology
”
Technology”
Next
-generation M
IVEC engine ( FY
2011~ )
Next-generation
MIVEC
FY2011~
Hybrid vehicle ( FY2013
~)
FY2013~
9
Product Strategy ~Rolling out “Global Strategic Models” focusing on Emerging Markets~
10
Introducing affordable & fuel efficient compact car “Global Small”
・ Begin production in Thailand in FY2011
・ Sequentially start export to ASEAN, Japan, US, Europe from FY2012
Expanding the SUV lineup in emerging market
・ Respond to wide range of demand, including the emerging markets
・ Deliberate on 1 ton pick-up development/production corporation
with Nissan
Discontinuing region-specific model
・ Cancel launch of successors for US/Europe region-specific models
Minicar: deliberating joint venture with Nissan
・ Collaborate in product planning/developing of minicar
11
Regional Strategy
Mature markets
Solidify profitability
Sales volume : increase 90,000 units
( FY2010 ⇒ FY2013 )
Precede in environmental technology,
further business efficiency
Emerging markets
FY2010
Forecast
FY2013
Target
Increase in profit
Sales volume : increase 280,000 units
( FY2010 ⇒ FY2013 )
Expand business by launching
compact/fuel efficient/affordable
models and SUV
FY2010
Forecast
FY2013
Target
Regional Strategy ~ Mature Markets ~
Japan
North
America
※
Europe※
12
Building solid profitability
( Strengthen after
-sales / Deliberate minicar
after-sales
minicar joint venture with Nissan )
Bolstering production/sales business
( Launch new US produced model )
Enhancing environmental brand value
( Accelerate expansion of eco
-car models prior to CO2 regulations )
eco-car
※Excluding Russia, Ukraine and Kazakhstan
Regional Strategy ~ Emerging Markets ~
ASEAN
13
Launch/export of ““Global
Global Small
Small””
( Construct new factory in Thailand )
Local production/sales of new SUV
Russia
( Increase local procurement to further enhance
cost competitiveness )
China
Reinforced production/sales ability by
establishing a new 50/50 joint venture company
Brazil
Strengthening product lineup
Expand supply to MERCOSUR, Andean Community
( Deliberate capital injection to local partnership )
14
Global Production Structure
Developed
adjustingprod.
prod.capacity
capacity
DevelopedCountries:
Countries: adjusting
Emerging
enhancingprod.
prod.capacity
capacity
Emergingcountries:
countries: enhancing
Breakdown
Breakdown of
of Japan/overseas
Japan/overseas production
production
・ U.S. :
rollout new locally produced models
・ Netherlands : cancel Colt successor model
・ Japan :
increase minicar production by
collaborating in joint venture
・ Thailand:
・ China:
・ Brazil:
・ Russia:
construct 3rd factory
increase production capacity
increase production capacity
full-scale SUV production
Breakdown
Breakdown of
of Overseas
Overseas production
production
（000 units)
（000 units)
1,580
1,100
Overseas
production
850
54%
44%
Emerging
countries
Japan
production
480
90%
84%
US/Netherlands
FY2010
Forecast
FY2013
Target
FY2010
Forecast
FY2013
Target
15
Improving the Quality Level
Globally
Globally expanding
expanding Mitsubishi
Mitsubishi brand
brand quality
quality level
level
Building a structure to globally sustain the quality level,
as we increase production facilities in emerging countries
Development:
・ Thorough utilization of “Dev. Quality Improvement Tools”
・ Thorough assessment of global vehicle running environment,
and compatibility assessment
Production:
・ Expansion of overseas factory incorporating MMC
HR Bank
Develop.
Product.
Procure.
Quality
production method as well as quality control methods
・ Foundation of overseas human resource bank
Market:
・ Timely correspondence to market information by creating
Quality Affairs
Problem
Solving
Team
Problem Solving Team
・ Improving information collection speed & accuracy, by
increasing expatriates
Market Info.
Window
16
Reforming the Cost Structure
Forming
Cost Reduction
”
Forming of
of ““Cost
Reduction Implementation
Implementation Committee
Committee”
・
・
・
Direct control under president
Material cost reduction monitoring system
Periodic follow
-up
follow-up
Fundamental
Fundamental
reformation
reformation of
of
material
material cost
cost reduction
reduction
Aiming
Aiming to
to secure
secure cost
cost competitiveness
competitiveness at
at global
global level
level
~ Aim to reduce material cost by 90 billion yen level in comparison to FY2010, by FY2013 ~
Expand
Expand overseas
overseas procurement
procurement
～
Promote overseas
～Promote
overseasprocurement
procurement
for
Japanese
produced
for Japanese producedmodels
models～
～
Strengthen
Strengthen cost
cost reduction
reduction activities
activities
～
Strengthen collaborative
～Strengthen
collaborativeefforts
efforts
with
overseas
production
hub
～
with overseas production hub～
FY2010 (Forecast)
Overseas
procurement rate
:
18%
～
Expand scale
～
～Expand
scalemerit
meritfor
forcommon
commonparts
parts～
25%
25%
15% decrease
-segment platform
decrease in
in CC-segment
platform
End of FY2010
(Forecast)
Promote
Promote cutbacks
cutbacks in
in #s
#s of
of platforms
platforms
FY2013 (Target)
# of platforms
：
platforms：
12
End of FY 2013 End of FY2015
(Target)
(ref.)
9
（（Prod.
Prod. volume/platform
） （（92,000
92,000 units
） （（176,000
volume/platform #s
#s）
units）
176,000 units
）
units）
66
17
Alliance Strategy
Pursuing
Pursuing business
business alliances
alliances
z Supplement product/technology to better fulfill customer needs
z Improve efficiency/capacity utilization at factories
z Cost reduction in R&D expenditure, fixed expenses, facility investments, etc.
Current collaborations
Models
Provided
Models
Received
Tech.
Assist
・ Nissan： commercial minicar,
passenger minicar, mini SUV
・ PSA Peugeot Citroen：SUV, EV
・ Nissan： small commercial car
・ Mazda： commercial car
・ Proton： assistance in passenger car
development/license production
Factory
Operation
・ PSA Peugeot Citroën ： vehicle
production in Kaluga factory, Russia
Green Tech.
・ Lithium ion battery venture with GS
Yuasa, Mitsubishi Corp.
FY2011~
Models
Provided
・ PSA Peugeot Citroën ： compact SUV
・ Nissan： SUV for Middle East market
Models
Received
・ Nissan： commercial car
・ Suzuki ： passenger car
EV Develop.
・ PSA Peugeot Citroën ： Commercial EV
to begin production around end of 2012
Under
Deliberation
・ Nissan： formation of joint venture for
minicar product planning/development,
collaborating in Nissan pickup truck
production in Thai factory, as well as
prod/develop. of successor model.
Receiving upper-class sedan model
for Japanese market
Increasing
-earning opportunities
Increasing profit
profit-earning
opportunities // Bolstering
Bolstering profitability
profitability
18
Profit Targets
（100 million yen / 000 units)
Sales Volume (Retail)
Sales
FY2010
FY2013
( Forecast )
( Target )
1,000 ※
1,370
19,000
25,000
450
900
2.4%
3.6%
150
450
0.8%
1.8%
US$ ¥85
Euro ¥113
Aus.$ ¥80
US$ ¥90
Euro ¥110
Aus. $ ¥75
Operating Income
Operating Income Ratio
Net Income
Net Income Ratio
Assumed forex. rate
※Displayed in renewed count (current count: 1,124）
Change in counting method: excluding models that’s not under Mitsubishi brand
19
Capital Expenditure, R&D Expenditure
Focusing
es
Focusing investment
investment in
in emerging
emerging market
market && environmental
environmental initiativ
initiatives
Capital
Capital expenditure
expenditure
Respond to the growing demand in emerging market
⇒Production of “Global Small” in the new Thai factory
90 bn yen / year
65 bn yen / year
increase development/production expenditure for
“Green” cars
40% increase
⇒expanding EV lineup
Improve production efficiency
R&D
R&D expenditure
expenditure
Propel development to match emerging market’s
needs
⇒compact/affordable/fuel efficient, SUV, etc.
Average expenditure per
year during FY2008FY2010 (Forecast)
Average expenditure per
year during FY2011FY2013 (Target)
70 bn yen / year
54 bn yen / year
Focus development on environmental technology
⇒Developing EV/PHEV and their components
30% increase
Improve existing technology
⇒Fuel efficient, low CO2 engine, lightweighting the car body
Average expenditure per
year during FY2008FY2010 (Forecast)
Average expenditure per
year during FY2011FY2013 (Target)
20
Financial Strategy
Balance
Balance sheet
sheet
While focusing on emerging markets/environment-related investments and R&Ds,
also strives to improve cash flow, and promote squeezing of interest-bearing debt
(100 million yen)
March 2010
Result
March 2011
Forecast
March 2014
Forecast
Total assets
12,587
12,600
14,520
Interestbearing debt
3,927
3,640
3,360
（Excluding NorthAmerica ABS*)
3,584
3,440
2,800
Capital
Capital strategy
strategy
Aiming resumption of dividend payments during this Mid-term Business Plan period
*ABS：Asset Backed Securities
21
Compliance and CSR Activities
Towards
Towards aa sustainable
sustainable future
future people
people living
living in
in harmony
harmony
with
hrough the
s
with society
society and
and the
the earth
earth tthrough
the car
cars
Promote activities to enhance
“trust of society”
Local
communities
・ Strengthen compliance awareness activities
・ Strengthen corporate governance
Business Ethics
of Mitsubishi
Motors
・ Continue check system by the Business Ethics
Committee
Promote activities to meet
“expectation of society”
Customers
Corporate Philosophy
Expectation by society
Contribution
to society
Employees
Compliance
first
・ Overseas audit of quality assurance checking
・ Reinforced global environmental management
Safety
first
Customers
first
Corporate governance
・ Development of employee participation in social
contributions
・ Global expansion of compliance and CSR activities
Shareholders
and
investors
Expectation by society
・ Realization of low-carbon, recycling-oriented
society and promoting efforts to reduce
environmental load
Expand the activities to global level
Contribution
to environment
Distributors/
Dealers
Concept of CSR activities
Business
partners
Mitsubishi Motors Environmental Initiative Program 2015
-FY2015)
Layout
-term Environmental
(FY2011-FY2015)
Layout of
of New
New Mid
Mid-term
Environmental Initiative
Initiative Program
Program 2015
2015 (FY2011
Production
Products
Set up the mid point target to achieve “Environmental Vision 2020”
FY
2015 Target
FY2015
Target
FY
2020 Target
FY2020
Target
Reduce by
25％
Reduce by
50％
Production ratio
of EV and PHEV
5％
and above
20％
and above
Per-vehicle
CO2 emissions
Reduce by
15％
Reduce by
20％
CO2 emissions
for new products
*Versus 2005 global
lineup average
*Versus 2005
22
23
Additional
Additional information
information
MINICAB-MiEV, Commercial mini EV
《For reference》 Changing in counting definition of retail units
Change
Change
Current definition
Count retail unit including other brands models which MMC
designed and reward its royalty*
* Example products: former Lancer(V3) for Southeast (Fujian) Motor of China, former Pajero (Liebao) for GAC
Changfeng Motor of China, and Veryca, Light commercial vehicle for CMC of Taiwan.
Renewed definition
Count only MMC brand retail unit since FY2011
24
25
All statements herein, other than historical facts, contain forward-looking
statements and are based on MMC’s current forecasts, expectations, targets,
plans, and evaluations. Any forecasted value is calculated or obtained based on
certain assumptions. Forward-looking statements involve inherent risks and
uncertainties. A number of significant factors could therefore cause actual
results to differ from those contained in any forward-looking statement.
Significant risk factors include:
• Feasibility of each target and initiative as laid out in this presentation;
• Fluctuations in interest rates, exchange rates and oil prices;
• Changes in laws, regulations and government policies; and
• Regional and/or global socioeconomic changes.
Potential risks and uncertainties are not limited to the above and MMC is not
under any obligation to update the information in this presentation to reflect
any developments or events in the future.
If you are interested in investing in Mitsubishi Motors, you are requested to
make a final investment decision at your own risk, taking the foregoing into
consideration. Please note that neither Mitsubishi Motors nor any third party
providing information shall be responsible for any damage you may suffer due
to investment in Mitsubishi Motors based on the information shown in this
presentation.