The 57th Ordinary General Meeting of Shareholders

[00:00:04]Good morning everyone.

[00:00:07]This is Kuttle, the director representative executive officer and CEO of Mitsubishi Motors.

[00:00:14]Thank you very much for taking the time out of busy schedule to attend our general meeting of shareholders.

[00:00:22]For the shareholders watching the live streaming we really do appreciate your time as well. Thank you very much.

[00:00:34]As stipulated in our articles of incorporation, I will be serving as the chair for this ordinary general meeting of shareholders.

[00:00:45]I will do my best to facilitate this meeting smoothly and efficiently, so I solicit your understanding and cooperation in advance.

[00:00:57]For many shareholders who are not attending this meeting in person we are live streaming the session from the beginning till the end limiting the audience to our shareholders.

[00:01:14]The recording will be shared to general public [clears throat] for 1 month starting from tomorrow.

[00:01:25]However, the recording of Q&A session almost will not be disclosed because the footage may contain the shareholders voice.

[00:01:37]We try to be respectful of people's privacy and I take utmost care not to show the faces of the shareholders in this room. However, some shareholders may be filmed inadvertently, so we do appreciate your understanding in advance.

[00:01:53]The live streaming may be affected by the connection environment and that may cause a time lag from the actual procession of the meeting.

[00:02:03]When we face a connection problem, please understand that we may proceed the meeting without waiting for the connection to be restored.

[00:02:13]Now, we appreciate your understanding.

[00:02:18]So, now let us commence the 57th annual general meeting of shareholders of Mitsubishi Motors.

[00:02:29]To be prepared for questions from shareholders, we have our directors, executive officers, and some corporate officers seated on this stage as well.

[00:02:43]So, the directors are seated on your right.

[00:02:48]Our chairman and the outside director, uh Hiraku, is seated right next to me.

[00:02:59]Then, Inada, the director and the full-time audit committee member.

[00:03:05]Then, next to him to the rear, the other outside directors are seated.

[00:03:16]And executive officers and corporate officers are seated on your left.

[00:03:26]Now, Kisera, who took up the post of representative executive officer and president in April this year, would like to say a few words.

[00:03:43]My name is Kisera and I was appointed president in April this year.

[00:03:47]Although we are under a challenging environment, I shall do my utmost best and I would be grateful for the support of our shareholders.

[00:04:03]For your information, director Koda is unable to attend today's general meeting due to various circumstances. We appreciate your understanding.

[00:04:15]We submit the meeting agenda for today as stated in the notice of convocation for this meeting.

[00:04:26]The detail will be presented later.

[00:04:30]I would like to inform you that we have enough attendance to satisfy the quorum for resolving the proposals today.

[00:04:40]As for any questions and comments you may have, we will be happy to respond to them after the audit report by the audit committee, the matters to report, and the matters for resolution.

[00:04:57]So, we will take questions after uh those agenda topics. And also, this meeting will be facilitated in Japanese and the live streaming is provided only in Japanese as well. We only take comments and questions from the shareholders in Japanese.

[00:05:17]When non-Japanese shareholders are accompanied by the interpreters, the Japanese interpretation will be regarded as the comment by the shareholders.

[00:05:27]Next, director Nakamura, who serves as the chair to the audit committee, will give an audit report by the audit committee.

[00:05:38]Director Nakamura, chair of the audit committee, please.

[00:05:57]>> So, this is the camera that's here to the audit committee.

[00:06:01]I would like to report the uh fiscal year 2025 audit report by the audit committee.

[00:06:10]So, Mitsubishi Motors audit committee prepared an audit report after deliberating on the financial year 2025 audit results. The audit methods and results by the audit committee uh as described in the audit report by the audit committee on our website. And we found no matter requiring any comment.

[00:06:30]First, we found that the business report and its supplementary schedules accurately represent the company's situation according to laws, regulations, and the articles of incorporations. We found no material fact of any fraudulent act or any violation of laws, regulations, and the articles of incorporation in [clears throat] connection with the execution of duties by directors and executive officers.

[00:06:55]We acknowledge that the resolutions on the internal control system at the board of directors meetings were appropriate. We found no matter requiring any comment in particular regarding the execution of duties by directors and executive officers with respect to such internal control system, including internal controlling over financial reporting.

[00:07:19]Next, as stated in the audit report by the statutory auditor posted on our website, we have received a report informing that our consolidated financial statements, as well as standalone financial statements and their supplemental lease schedules are appropriate. We also acknowledge that the audit method and results by the statutory auditors were appropriate.

[00:07:41]Furthermore, the contents of the proposals and documents submitted to this general meeting were reviewed.

[00:07:48]As a result, we found that all in compliance with laws, regulations, and and the articles of incorporation and found no matter requiring any comment.

[00:07:56]This concludes my report.

[00:08:06]Next, I would like to report on the contents of the fiscal year 2025 business report, consolidated and non-consolidated financial statements as outlined in the notice of convocation you have before you and on our website.

[00:08:24]I [clears throat] would now like to provide an overview of the MMC Group's business operation.

[00:08:29]First, I will explain the MMC Group's consolidated results for FY2025.

[00:08:38]Cumulative global sales volume for fiscal year 2025 totaled 797,000 units, down 5% of the previous fiscal year.

[00:08:48]Net sales increased by 4% year-on-year to 2 trillion 896.5 billion yen.

[00:08:55]Operating profit decreased by 63.3 billion yen year-on-year to 75.5 billion yen.

[00:09:03]Ordinary profit decreased by 19.7 billion yen year-on-year to 78.9 billion yen, and profit attributable to owners of parent decreased by 31 billion yen year-on-year to 10 billion yen.

[00:09:21]Regarding dividends for the fiscal year under review, we have decided to propose an end-of-term dividend of 5 yen per share for approval at this ordinary general meeting of shareholders.

[00:09:33]Next, I will explain the MMC Group's major initiatives for fiscal year 2025. First, on the product front, we launched new models such as the all-new Delica Mini and the all-new Destinator.

[00:09:48]These two new models have won awards in the respective categories of the FY2025 Good Design Award, and their designs, which embody the essence of Mitsubishi Motors, have been highly acclaimed.

[00:10:02]By successfully balancing design and functionality, they have garnered strong support from many customers.

[00:10:09]Next, regarding sales, in the domestic market, we began sales of the all-new Delica D:5, which features enhanced driving performance.

[00:10:21]The Delica D:5 has sold over 310,000 units in the 19 years since its launch.

[00:10:28]And with sales in FY2025 reaching a record high, it demonstrates its strong competitiveness as a core model of the brand.

[00:10:38]Overseas, particularly in the ASEAN market, a key region for the MMC Group, we have been working to rebuild our business foundation and strengthen our competitiveness amid the challenging business environment marked by intensifying competition due to the rise of Chinese manufacturers and the impact of exchange rates.

[00:11:00]The Destinator, which went on sale in Indonesia in July 2025, has seen a strong launch that far exceeded expectation.

[00:11:10]We have also begun sales in the Philippines and Vietnam, and we plan to roll it out sequentially to approximately 70 countries.

[00:11:20]The compact SUV Xforce has expanded its sales territory to Malaysia and Taiwan, contributing to increased sales and enhanced brand awareness in each market.

[00:11:33]In Vietnam, our flagship models have been widely embraced by local customers with sales volume setting new records for two consecutive years.

[00:11:46]Sales are also expanding in Latin American markets, particularly in Mexico, where sales volumes have set new records for five consecutive years.

[00:11:59]And So And while strengthening our business foundation in this way, we have also achieved significant results in motorsports as an initiative that symbolizes our technological capabilities and brand.

[00:12:16]At the 2025 Asia Cross Country Rally, Team Mitsubishi Rally has claimed the overall victory and also won the team award.

[00:12:24]This result once again demonstrates the off-road capability, durability, and reliability of our vehicles.

[00:12:31]Furthermore, the technologies cultivated through motorsports contribute to enhancing the product appeal of our production vehicles, playing a crucial role in both brand value and competitiveness.

[00:12:45]In our recently announced mid-to-long-term vision we [snorts] have set forth a goal of enhancing customer satisfaction and corporate value through distinctive products and brand strengthening for the future.

[00:12:57]To achieve sustainable growth even in a highly uncertain environment, we will simultaneously advance two key pillars, a brand-centric growth strategy and structural reforms aimed at strengthening our competitiveness.

[00:13:15]So And We the value chain We thought we would maximize the value per vehicle.

[00:13:37]in the area of and >> [clears throat] >> Excuse me.

[00:13:58]We believe that the synergies between these growth strategies and structural reforms will enable us to establish a business foundation capable of sustainable growth that is resilient to environmental changes.

[00:14:12]Furthermore, in our recent announcement, we revealed that we will launch our flagship model, the Pajero this fall, as part of our efforts to introduce products that embody the essence of Mitsubishi Motors.

[00:14:26]In addition, as a symbolic model that carries on the DNA of this Mitsubishi Motorsness, we plan to sequentially introduce new products under the Pajero series going forward.

[00:14:37]Furthermore, starting with the Pajero, we will concentrate our development resources on two product groups, the ASEAN product group and the off-road product group to promote the creation of distinctive products.

[00:14:52]From fiscal year 2026 through 2031, we will continue to introduce 13 new models to build a lineup that embodies our brand centered on these two product groups.

[00:15:05]Regarding electrification, while leveraging partnerships for EVs, we will focus our in-house efforts on ATVs and PHEVs, introducing a total of 10 models.

[00:15:16]Through this approach, we aim to balance the environmental performance with driving performance, while also efficiently expanding our lineup by utilizing partnerships in certain areas.

[00:15:28]Based on these basic strategies, during the first four years of our mid-to-long-term vision, we will prioritize strengthening our earning structure and making investments for future growth.

[00:15:39]Building on this, we aim to achieve operating profit of 160 billion yen, an operating margin of 4.5% and an ROE of 10% by fiscal year 2029, and further aim to achieve operating profit of 200 to 250 billion yen, an operating margin of 5.5 or higher, and an ROE of 12% or higher by the early 2030s.

[00:16:06]Furthermore, regarding shareholder returns, we plan [clears throat] to allocate approximately 100 billion yen from the operating cash flow of about 1.2 trillion yen to be generated between fiscal years 2026 and 2029 toward the shareholder return.

[00:16:24]Specifically, in addition to stable dividends with a minimum of 10 yen per share, we will implement a progressive dividend policy where we increase dividends in line with earning improvements, as well as share buybacks.

[00:16:38]Finally, guided by our vision of realize possibilities of mobility to create a vibrant society, we will evolve the way people move to make it more efficient and optimal, thereby contributing to the revitalization of society as a whole.

[00:16:55]To achieve this, we will advance our initiatives toward carbon neutrality, respect human rights, and foster an environment where diverse talents can thrive.

[00:17:05]At the same time, with compliance as our top priority, we will thoroughly strengthen corporate governance and ensure highly transparent management. We look forward to your continued support. This concludes the overview of our company's business operations.

[00:17:24]All Jody. Now, I'd like to present the proposals to be resolved. So, the first proposal is appropriation of a surplus.

[00:17:34]The detail of this first proposal is in page eight of the notice of convocation.

[00:17:41]After counseling the free year performance in a comprehensive manner, we would like to propose 5 yen per share as the year end dividend.

[00:17:53]Including the 5 yen per share for the mid-year dividend, the full year dividend becomes 10 yen per share.

[00:18:02]The second proposal is appointment of 13 directors.

[00:18:09]The detail is in page nine to page 19 of the notice of convocation.

[00:18:17]The term of office of the 12 current directors will all expire at the end of the general this general meeting of shareholders. Accordingly, we hereby propose the 13 individuals listed in the notice of convocation as nominees for the board of directors and we would like to request a single vote to approve the appointment of all nominees.

[00:18:38]And this is the end of proposals to be resolved. Now, we would like to have a Q&A session.

[00:18:45]First, before taking questions from shareholders in all the from in the audience, I would like to respond to questions that were submitted in advance and that I I believe are of high interest to shareholders.

[00:19:01]So, firstly, we would like to respond to inquiries regarding our products and collaboration strategy.

[00:19:10]The automotive industry is undergoing period of profound transformation and ever greater technical capabilities such as intelligent systems and electrification will continue to be required across various fields. It is difficult to secure the substantial investment and development resources required on our own.

[00:19:28]>> [snorts] >> We therefore consider collaboration with other companies such as other OEMs and power suppliers to be essential. As I explained in our mid to long-term vision the other day, we consider our complementary structure built on alliances with Nissan, Renault and others to be a one of our strengths.

[00:19:46]This complementary structure enables us to allocate our limited management resources primarily to the areas in which we excel and in areas where it will be inefficient for our company to operate alone, we actively utilize the capabilities of our collaborative partners and enhances stability of our business foundation.

[00:20:08]About product enhancement or product development uh deployment, we want to focus on our off-road and ASEAN product ranges which are both hallmarks and strengths of our brand. We intend to concentrate our resources on developing distinctive products that reflect our MMC's unique character such as the new Xpander and the new Pajero announced recently.

[00:20:29]In particular, we have received an overwhelming number of messages of encouragement regarding the launch of our Pajero range and so we will continue to launch products that reflect our company's unique characteristics and live up to your expectations.

[00:20:46]At the same time, to meet the specific needs of individual markets such as those in Europe and the US which cannot be fully addressed by these models alone, we will utilize partnership to complement our product range. The new pickup project with Nissan in North America announced as part of our mid to long-term vision also forms a part of this product uh portfolio expansion in Australia as well. We are moving forward with collaborations with new partners such as introducing Bev uh developed by Foxtron of Hon Hai Group this year. And in and in technological fields such as electrification and intelligent systems, we will continue to focus on our strengths and MMC's unique cutting-edge uh technologies and further develop the technologies that embody our MMC brand.

[00:21:38]As part of uh this initiative, we intend to engage in joint development with component manufacturers. And about electrification, building on the PATV technology we have been developing in-house, we plan to expand our range to include ATV and also PATV models in the future. In addition, in the field of cutting-edge technology, we will also utilize the framework of our strategic partnership with Nissan and Honda to explore our various possibilities.

[00:22:08]At the same time, in areas where we can capitalize on our strengths such as our core business in ASEAN and frame type uh vehicle such as Triton, we aim to build complementary relationships with our collaborative partners by offering them these capabilities and thereby creating mutual added values.

[00:22:26]Uh so, with regard to the our collaborative activities, in addition to the ones that were already announced to the public, we are also actively exploring various options. We intend to provide further details once the time is right to do so.

[00:22:42]>> Next, I would like to address uh the many comments and questions we have received regarding our stock price and dividends.

[00:22:50]While stock prices across the entire automotive industry have been sluggish recently, our company's stock price has continued to underperform over the past year, which we, as management, take very seriously.

[00:23:06]We believe one factor was the temporary decline in sales volume caused by the simultaneous discontinuation of multiple models in the first half of the last fiscal year, which also affected our stock price.

[00:23:18]On the other hand, our stock price since the beginning of this year has remained at an average level among automakers, partly due to the overall uncertainty in the industry.

[00:23:31]Under these circumstances, to improve our stock price, we must first deliver results in improving our profitability and earn the trust of investors.

[00:23:41]In addition, we believe it is crucial to clearly demonstrate our growth potential, including collaboration with our alliance partners, amid the challenging environment facing the automotive industry.

[00:23:54]Having achieved five consecutive years of profitability, we have secured a sufficient level of equity and cash on hand, and we believe we are in sound financial health.

[00:24:06]We will meet your expectations by systematically implementing each of the measures outlined in the mid-to-long-term vision, which we announced last month.

[00:24:17]Regarding dividends, by securing solid earnings through these measures, we will strive to provide steady shareholder returns through a progressive dividend policy that includes a stable dividend with a minimum of 10 yen per share, as well as increases in dividends in line with improved earnings.

[00:24:40]>> This concludes our responses to the questions submitted in advance by our shareholders.

[00:24:52]>> We will now proceed to the vote on the proposal.

[00:24:56]First, we will vote on proposal number one, on proposal number one, appropriation of surplus. Those in favor, please show your approval by applause.

[00:25:07]Thank you.

[00:25:12]This proposal has been approved and adopted as originally proposed by a majority of the shareholders present at this general meeting, including those who voted via the voting form and the internet, as well as proxy votes.

[00:25:30]Next, we will vote on the second proposal, election of 13 members of the board.

[00:25:36]Those in favor, please show your approval by applause.

[00:25:44]Thank you.

[00:25:48]This proposal has been approved and adopted as originally proposed by a majority of the shareholders present at this general meeting, including those who voted via the voting form and the internet, as well as proxy votes.

[00:26:06]With that, all items on the agenda for today's meeting have been concluded.

[00:26:14]We sincerely appreciate the valuable time you have taken to attend this meeting.

[00:26:19]This concludes the 57th ordinary general meeting of shareholders of Mitsubishi Motors Corporation.

[00:26:29]Now, I would like to take a moment to introduce our newly elected directors.

[00:26:40]I will introduce them one by one.

[00:26:44]Our newly elected director, Mr. Seiji Izumisawa.

[00:26:52]Ms. Sakie Akiyama.

[00:27:00]And again, Mr. Keisuke Kishira.

[00:27:09]The board of directors of Mitsubishi Motors Corporation will continue to strive for sustainable growth and the enhancement of corporate value with the aim of creating value that exceeds the expectation of our stakeholders, including our customers and shareholders.

[00:27:25]We kindly ask for your continued support.

[00:27:32]We sincerely thank you for attending our shareholders meeting today despite your busy schedules and for watching the live stream.