FY2023-2025 Mid-Term Business Plan
“Challenge 2025”
March 10, 2023

I’d like to give you a presentation on the new Mitsubishi Motors mid-termbusiness plan “Challenge2025” that starts from FY2023.

1

Challenge 2025

“2023 – 2025”
A Turning Point to a Major Transition Era

The Challenge forFurther Growth & the Next Generation
2

First, I’d like to tell you about the background as to why the new mid-term planis called “Challenge2025”.
It goes without saying that the automotive industry is facing a once-in-acentury era of major transition.
In addition to electrification as a way to combat global warming, the concept of
the automobile as being a means of moving people and goods is changing
significantly due to AI, IoT, and other advances in technology. Automotive
industry is about to enter a new era.
The coming three years might be the turning point for us to transform into a
new generation.
Thus, we see these three years as a period in which we must thoroughly pursue
the challenge of transforming ourselves, and of strengthening our managementfoundation as a preparation for the next generation. We put our desire toaccomplish these two challenges thoroughly into the tagline of “Challenge 2025”.

2

 Review of Current Mid-Term Business Plan
 Long-term Road Map
 Challenge 2025 Overview
 Challenge 2025 Key Strategy

3

Let’s take a look at the results of the current mid-term plan “Small but Beautiful”.

3Review of Current Mid-Term Business Plan “Small but Beautiful”
Achieved a Swift Shift to a Lean and Agile Business Structure
Significant Profit Improvement Achieved through Fixed Cost Reduction and Revenue Improvement
Initiative Items
Reduce fixed cost by 20% within 2 years
by consolidating investments into core regions and products

Results
Achieved in 1 year

Concentrate management resources in ASEAN
Reform business structure in developed countries

Boosted product rollouts for ASEAN in new MTP*
Reformed European business with Alliance support

Enhance xEV lineup
Enhance technology development for xEVs

2 PHEVs / Production restart of Kei commercial EV /Kei EV (Nissan) / EV for China (Guangzhou Automobile Gr.) /Took PHEV/HEV/BEV technology into the next generation

Optimize production structure

Restructured domestic production

Strengthen Partnerships

Utilized new technologies from the Alliance(CMF-CD platform / E-Architecture / ADAS /Kei EV technology, etc.)* Mid-Term Business Plan

4

The current plan aimed for a swift shift to a lean and agile business structure.
We believe that we were able to take forward the planned measures largely
ahead of schedule.
Let’s take a look at the main initiative items,• In terms of fixed cost reduction and cost structure reform, we managed toachieve the 20% reduction in fixed cost set out in the plan a year early.
• We concentrated management resources in our core region of ASEAN, andworked on the development of new products to be released after the newplan starts. In parallel with this, we have implemented structural reforms forour business in Europe and monetized it.
• To help achieve carbon neutrality, we were able to enhance our lineup of xEV
and work on developing electrification technology and taking it into the next
generation.
In order to improve profitability without falling into a balanced contraction, fromFY2021 we embarked on activities to improve revenue in the form of our“strategy to improve our net revenue”.
This strategy involves thoroughly investigating and improving the transaction
conditions in each process, starting with shipment from plants up to delivery ofvehicles to distributors, dealers, and customers, in order to maximize ourrevenue per vehicle.
At the same time, this activity leads to value-oriented sales, and we believe it
has helped to give a lift to the Mitsubishi Motors brand.

4

Review of Current Mid-Term Business Plan “Small but Beautiful”
Significant Profit Improvement Achieved through Fixed Cost Reduction and Revenue Improvement(K Units, Billion yen)

170.0

2000

11.0%

87.3

1000

6.0%
6.9%

12.8

Operating profit
(%)

50.0

4.3%

0
0.6%

1.0%

-6.5%

-4.0%

-95.3

-9.0%

-1000
-2000

FY2019FY2019

Free Cash Flow

-82.8

Sales Volume (Retail)1,127

R&D Expenses

130.9

CAPEX

103.9

Depreciation

74.8

FY2020
FY2020

FY2022
MTP
TargetFY2022

FY2021
FY2021-178.8FY2022(forecast)
FY2022-14.0%

25.6

31.0

-

801

937

1,054

866

101.4

90.7

99.0

102.0

76.4

62.7

100.0

90.0

65.9

53.6

80.0

59.0

5

Through these initiatives, operating profit in FY2022 - the final year of the midterm plan - is expected to reach 170 billion yen with a profit margin of 6.9%,
whereas the initial target was 50 billion yen and an operating profit margin of
2.3%.
While we enjoyed tail winds in the form of the weak yen and lower discounts due
to inventory shortages across the industry, we managed to overcome headwinds in the form of semiconductor shortages, production disruption due to the
COVID-19 pandemic, soaring raw material prices and transportation costs as well
as a shortage of shipping capacity to achieve an increase in profit.
In addition, we have a plan to resume dividends from the end of this fiscal year
when the financial results are finalized.

5 Review of Current Mid-Term Business Plan
 Long-term Road Map
 Challenge 2025 Overview
 Challenge 2025 Key Strategy

6

I’d now like to give you an explanation of the new mid-term plan “Challenge2025”.

6

Long-Term Road Map
2020

2025

Increased awareness of CN
Societal
Changes2035

2030
Initiatives to achieve CN / Battery evolution

Generation Z (prioritize Experience, Empathy, and Time Performance)

To Generation α...

Digital Technology Evolution (Comms(5G/6G), DX, AI, Robotics, and Metaverse)

Mid-Term
Business Plan

“Small but Beautiful”

VehicleElectrification

Mainly ICE“Challenge 2025”

ICE / HEV / PHEV / BEV mixed

Use of digital techin business- System upgrade- DX

BusinessForm- Vehicle sales- After sales- Value chain expansion- New business challenges

Regional
Strategy

Global rollout

Focus area selection
and role clarificationDX /New Business

Mainly HEV / PHEV / BEV

Mainly BEV

Fully fledged rollout of new business using digital tech
- Vehicle sales + securing profit in new business areas- Deeper collaboration with partners (energy management, etc.)

Clarifying regional roles and securing profit for each region

7

To establish the new mid-term plan, firstly, through an activity “15 years plan”
whereby we came up with several scenarios for how the world will look in 15
years from now in the fields of technology, regional communities, and mobility
business and then performed backcasting, we formulated a plan for what wehave to work on in the next three years.
This slide shows three major societal changes that will bring about a period ofmajor transition.
・Towards the solution of the global issue of climate change, we believe that
initiatives to achieve carbon neutrality will take place at the level of society as awhole.
We think that in the automotive industry, the evolution of batteries and biofuels
will support this.
・Next is our targeted customer segment.
We believe that, if Generation Z, who are digital natives and prioritize experienceand empathy, become the core automotive purchasing group and user group in
future, this will greatly change marketing and sales activities going forward.
・Finally, we believe that incorporating diverse and ever-evolving digitaltechnology is absolutely essential when it comes to strengthening ourcompetitiveness in the fields of autonomous driving, connected car service, andthe mobility business.
＜Continued on next page＞

7

As the automotive maker that was the first in the world to achieve
mass production of BEV and SUV PHEV models, we will bolster ourdevelopment of electrification technology, and drive forward further
electrification with the aim of reducing greenhouse gas emissions witha “Well to Wheel” approach and minimizing cost of ownership for ourcustomers.
Based on the assumption that the digital natives who are Generation Z
will become the core automotive purchaser and user group, we will
renew our IT infrastructure in operations and go forward with digitaltransformation.
Furthermore, we believe that electrification and the evolution of digitaltechnology will provide opportunities for new business such as energy
management and the data business.
During the period of the new mid-term plan, we will explore thepossibilities of new business, and work to build an infrastructure for asubsequent full-scale undertaking.

7 Review of Current Mid-Term Business Plan
 Long-term Road Map
 Challenge 2025 Overview
 Challenge 2025 Key Strategy

8

I’d now like to give you an outline of the new mid-term plan.

8

Challenge 2025 Management KPIs
Sales KPIs

Financial KPIs
FY2025Net Sales
per Vehicle¥2,500k

Sales Volume(Retail)

1,100kunits

Investment KPIs

FY2025

Operating Profit(%)
EBITDA*(%)

Free Cash Flow

Shareholders’ Equity(Equity ratio)¥220.0bn
7%¥300.0bn
10%

FY2025

R&D Expenses(Electrification)¥150.0bn¥70.0bn(IT/New Business)¥130.0bn¥55.0bn¥15.0bn

Depreciation¥85.0bn

CAPEX(Electrification)¥150.0bn¥1.0trn
45%* Earnings Before Interest, Taxes, Depreciation,
and Amortization

9

This slide shows the main management KPIs in the new mid-term plan.
The strategy to improve our net revenue is a main measure to strengthen the
Mitsubishi Motors brand, and by taking this strategy forward, we shall increase
revenue through improved sales price and sales mix, and raise the average net
sales per vehicle to 2.5 million yen from 2.3 million yen as forecasted for FY2022.
By leveraging the rollout of new products for ASEAN, we will aim to grow retailsales volume by around 200,000 in three years and target the 1.1 million vehicle
range.
Ahead of the phase of transition from the next mid-term plan, we will focus onelectrification and IT and significantly increase the amount we spend on R&D and
CAPEX, and we will aim for operating profit of 220 billion yen with a profit marginof 7% in FY2025.
We will aim to bolster our business structure as a company using a broad rangeof measures including financial performance, and monitor EBITDA margin andshareholders’ equity/shareholders’ equity ratio as important KPIs.

9

Challenge 2025 Management KPIs
220.0

(K Units, Billion2500
yen)

170.0

2000

11.0%

1500

87.3

1000
500
Operating profit
(%)
0
-500

50.0
12.8

4.3%

-6.5%

-1500

-95.3

1.0%
-4.0%
-9.0%

FY2019FY2020

FY2021

FY2022Current MTP
TargetFY2022(Forecast)

FY2019-82.8

FY2020-178.8FY2021
25.6

FY202231.0

FY2022--2500
Free Cash FlowFY2025
New MTP
TargetFY2023→

FY2024-14.0%FY2025150.0

Sales Volume (Retail)

1,127

801

937

1,054

866

→

1,100

R&D Expenses

130.9

101.4

90.7

99.0

102.0

→

150.0

CAPEX

103.9

76.4

62.7

100.0

90.0

→

130.0

Depreciation

74.8

65.9

53.6

80.0

59.0

→

85.0

USD

109

105

112

107

135

127

THB

3.52

3.41

3.44

3.47

3.83

3.88

FX Rate
(Yen)

6.0%

0.6%

-1000
-2000

7.0%

6.9%

10

This slide shows the main management KPI for individual fiscal years from 2019in chronological order.
In the final year of the new mid-term plan, we plan to secure the profit and free
cash flow you can see here, having absorbed an annual increase in R&D expenses
of approximately 50 billion yen from the amount this year, an increase indepreciation and amortization of around 26 billion yen through increased CAPEX,
and other expense increases such as advertising.

10

R&D Expenses / CAPEXR&D Expenses

CAPEX

+30%

+30%

FY2023-28

FY2023-28

1600

1600

1400

1400

FY2017-22

1200

70%

1200

1000

1000

800

800

600

600

400

FY2017-22

70%

50%

400

20%

IT/New Business20020％
Electrification

200
Electrification00Previous MTP

Current MTP

New MTP

Next MTP

Previous MTP

Current MTP

New MTP

Next MTPFY2017-19

FY2020-22

FY2023-25

FY2026-28

FY2017-19

FY2020-22

FY2023-25

FY2026-28

11This slide provides an additional explanation regarding R&D expenses and CAPEX.
With the new mid-term plan, we intend to address the forthcoming era of majortransition by spending on R&D and CAPEX that is stable and at a higher level
than previously.
As we do this, we plan to increase our expenditure in areas including
electrification, IT, and new business as a proportion of our total expenditure.
In terms of R&D expenses, we will increase the investment by around 30% overthe six years to 2028, the final year of the next mid-term plan, compared withthe past six years.
While Mitsubishi Motors has already focused much attention and resources on
the research and development of xEVs, we will aim to encourage further
electrification and increase the ratio of xEVs sales with the goal of helping toachieve carbon neutrality and complying with environmental regulations.
Our spending on electrification is expected to reach 70% or so of R&D expenses
from FY2026 onward.
And for CAPEX, we plan to invest 30% more over the next six years than theprevious level, of which around 70% will be allocated to electrification, IT and new
business.

11

The 3 Major Challenges in Challenge 2025
Establishment/Strengtheningof Absolutely Stable
Revenue Base

Enhance profitability
in ASEAN / Oceania

Working toward
Carbon Neutrality

Strengthening electrification
development and Alliancefor the 2nd phase ofxEV lineup enhancement(FY2026-2028)

Digitalization / Expansion
into New Business Areas

In-house IT infrastructure renewal/ Digital HR development

Energy Management

Enhance profitability in otherregions with ASEAN products(Latin America, Middle East/Africa)

Battery Reuse
Business improvement in Advanced
Technology Promotion Regions(Japan / North America /Europe / China)

Boosting action for
Scope1-3 of CO2 reductions(Production/Procurement)

Data Sales

12

Next, I’d now like to explain the main challenges in the course of the new midterm plan.
The first is our regional strategy to establish a stable revenue base.
We will divide the global market into three categories, and after clarifying therole of each region, work to establish and strengthen the absolutely stablerevenue base.
The second is how we can address the global issue of carbon neutrality.
We will work on the development of xEVs and bolster collaboration with theAlliance members ahead of the phase of accelerated electrification that will
come about at a point after we start the new mid-term plan.
And we will also work to reduce emissions of greenhouse gases that originate
from our business activities.
The third challenge is our survival in the era of major transition, so we will
accelerate our digital transformation and initiatives towards new business.
To do this, we will renew our in-house IT infrastructure, develop digital talent,
and take other action to establish an internal foundation.
In addition, we will put in place the business foundation for new business inareas that automotive makers are in a unique position to exploit, such as energy
management, reuse of used batteries, and external sales of vehicle data.

12

The Role of Mitsubishi Motors-ness

Mitsubishi Motors-ness - To be the company of choice for our customers

What is Mitsubishi Motors-ness?
The provision to customers of a fulfilling mobility life that awakens theiradventurous spirit on the basis of reliability backed up by technology that
achieves “Eco-friendly x Safety Technology, Peace of Mind and Comfort”

Boosting the Mitsubishi Motors brand and Value-Oriented business13

I have explained our major challenges thus far. These measures to address issues
faced by society and to improve business are common to all companies in theautomotive industry.
If we want to have customers choose to buy products from Mitsubishi Motors
among several automotive makers, we have to thoroughly refine the idea of
Mitsubishi Motors-ness and promote this to the market in an appropriate way inorder to have customers understand and feel a connection with it.
Mitsubishi Motors-ness is defined as “The provision to customers of a fulfilling
mobility life that awakens their adventurous spirit on the basis of reliability
backed up by technology that achieves “Eco-friendly x Safety Technology, Peaceof Mind and Comfort”.
By promoting this to customers and having them feel a connection with it, we
will boost the Mitsubishi Motors brand and spread value-oriented business.

13

The Product Vision of Mitsubishi Motors-ness

Environmentally friendly
and enable activities
close to nature

Help contribute tocarbon neutrality with
Commercial EVs

Enable our customers toexperience an exciting
adventure with confidence

Returning home withpeace of mind from safety
technology for just about
every adventure

Reliable and useful whenneeded in natural
disasters, power cuts, etc.

14This slide explains our vision for products that encapsulate Mitsubishi Motorsness.
While this also applies to already existing vehicles that are highly regarded bycustomers, we will develop products that can meet the following expectations:•
Automobiles that are environmentally friendly and enable activities close tonature•Automobiles that help contribute to carbon neutrality with commercial EVs•
Automobiles that enable our customers to experience an exciting adventurewith confidence•
Automobiles that enable our customers to return home with peace of mind
from safety technology for just about every adventure•
Automobiles that are reliable and useful when needed in natural disasters,
power cuts, etc.
Our unique technologies that constitute the automobiles encapsulating
Mitsubishi Motors-ness are described on the next slide.

14

The Compositional Technologies of Mitsubishi Motors-ness

The world’s firstmass-produced BEV
and globally recognized
PHEV at the core

Electrification

Provide innovative
driving performanceand reliability on
almost any roadsurface

Four-wheel control (S-AWC)

Reliable even inadverse conditions
thanks to a design
philosophy nurtured
on almost all roadsurfaces and in almost
all environments
around the world

Durability and Reliability

Excite drivers andpassengers witha comfortable andadvanced interior withever-advancing IT

Comfortability*While Super All-Wheel Control (S-AWC) manages the driving forces and braking forces of the four wheels to help realize vehicle behavior that is faithful to the operation by the driver under a variety of driving conditions,
it is not a substitute for careful driving. S-AWC cannot prevent collisions or loss of traction in all conditions. The driver must exercise caution so full attention is given to vehicle operation in all road conditions.

15

We were the first company in the world to achieve mass BEV production, and wehave developed electrification technology with globally recognized PHEV at thecore.
Moving forward, we will refine this and rollout more new technology to help
achieve carbon neutrality.
With durability and reliability in technology and four-wheel control that forms
our DNA, we will provide products that can be driven under almost any kind ofharsh conditions without breaking down.
Thanks to those technologies cultivated over the past decades, our pickup truck
TRITON recently won the ASIA CROSS COUNTRY RALLY despite the fact that it had
more or less the same specs as the mass production model.
Going forward, we will utilize ever-evolving IT and digital technology to provide
comfortable and advanced interior space, and pursue a range of technologies tomake all people who ride in them feel excited and fun about the Mitsubishi
Motors lifestyle.

15 Review of Current Mid-Term Business Plan
 Long-term Road Map
 Challenge 2025 Overview
 Challenge 2025 Key Strategy

16

From here, I will explain our key strategy.

16

Regional Strategy│Regional Categories

Growth Drivers

Leverage Regions

Advanced Technology
Promotion Regions

ASEAN, Oceania

Latin America,
Middle East /Africa

Japan, North America,
Europe, China

Second pillar of business development
maximizing use of ASEAN products

Move to advanced technologies byleveraging the Alliance / partners

Concentrate management resources into
these core business regions, and aim to growsales volume, market share and revenue

17

In the new mid-term plan, we have divided the global market into three
categories and clarified the role and our expectations for each one.
We defined our core business regions of ASEAN and Oceania as “GROWTH
DRIVERS”; Latin America, the Middle East, and Africa where we horizontally rollout our ASEAN products, as “LEVERAGE REGIONS”; and developed countries thatneed environmental technologies such as electrification, ADAS and other safety
technologies, as well as the utilization of vehicle data among other things as“ADVANCED TECHNOLOGY PROMOTION REGIONS”.

17Regional Strategy│Market Growth Outlook
Major growth in Growth Drivers/Leverage Regions*(%)+42% G r o w t h D r i v e r s+40% Leverage Regions

Advanced Technology+20% Promotion Regions

FY2022

FY2030*Research by Mitsubishi Motors

18This slide here shows a comparison of the market growth potential in eachregion over the period from FY2022 to FY2030.
Compared to ADVANCED TECHNOLOGY PROMOTION REGIONS, we believe that
GROWTH DRIVERS and LEVERAGE REGIONS have a lot of room for growth, so
Mitsubishi Motors will concentrate efforts into these regions.

18Regional Strategy│Regional Categories Summary

Growth Drivers

Leverage Regions

Advanced Technology
Promotion Regions

ASEAN, Oceania

Latin America,
Middle East /Africa

Japan, North America,
Europe, China

Second pillar of business development
maximizing use of ASEAN products

Move to advanced technologies byleveraging the Alliance / partners

Concentrate management resources into
these core business regions, and aim to growsales volume, market share and revenue
+42%

+20%

Market Growth (FY2022 - 2030)
Revenue Contribution
Management Resource Allocation

Utilization of the Alliance

Evolution / Strengthening of Advanced Technology

19

Here is a summary of regional strategy from the start of the new mid-term plan.
We will concentrate our management resources on the core business regions of“GROWTH DRIVERS”, and expand our sales volume and revenue.
For ASEAN, as a pillar of our business, we will roll out many new models in thecourse of the new mid-term plan.
We will also work to further solidify profitability in Oceania, which has always
been a revenue base for Mitsubishi Motors.
In LEVERAGE REGIONS, we will deepen our understanding of the characteristics
and needs of each market, make effective use of products for ASEAN while
implementing our strategy to improve net revenue, and work to expand ourbusiness.
For ADVANCED TECHNOLOGY PROMOTION REGIONS, we shall work with partners
including Alliance members, to deal with ever-stricter environmental regulations
and to develop and strengthen our technology.

19

Regional Strategy│Sales Forecast by Regional Category(K units)

Advanced Technology
Promotion Regions

1,000

Leverage Regions

500

Growth Drivers

FY10

FY11

FY12

FY13

FY14

FY15

FY16

FY17

FY18

FY19

FY20

FY21

FY22

FY23

FY24

FY25

FY26

FY27

FY28

20

This slide shows the sales volume result for each regional category, and gives anidea of our sales volume forecast for the new mid-term plan onward.
With a focus on GROWTH DRIVERS and LEVERAGE REGIONS, we will increase sales
volumes and aim for the 1.1 million vehicle range in FY2025.

20

Brand Value for Customers
Building of Long-term Relationships of Trust with Customers based on Productswith Mitsubishi Motors-ness

Purchasing / Service
Experience

CX with Digital tech/IT

 Global rollout of a new standard for stores Smooth customer experience through improvement of productivityof store/sales staff in purchasing Reassuring and smooth personalized customer experience in after
sales with total care

 Safety, security, and comfort in services with digitaltech/IT such as connected car services, apps, etc.

Provision of New Value
through Dealers

Activities to Spread
Mitsubishi Motors-ness

 Brand value-oriented activities in unison with dealers Provision of new value through dealers, such asa new lifestyle with xEVs and energy management

 Events to experience Mitsubishi Motors-ness(Star Camp, etc.)
 Provision of customer experience throughAsia Cross Country Rally and RALLIART21

I’d now like to talk about our basic approach to strengthening our sales network
for boosting Mitsubishi Motors brand value.
In order to build a relationship of trust with customers over the long term on thebasis of products with Mitsubishi Motors-ness, we will work on making
improvements at a range of touch points from considering a purchase up toownership.
*

*
*

*

We will improve the way we deal with customers in the store, which is thefirst touch point between the customer and us, and provide a smoothpurchasing experience as well as a feeling of reassurance and trust after
purchasing.
By utilizing digital technology and IT, we will work to enrich customer
experience in connected car services and after sales services.
We will share Mitsubishi Motors-ness with dealers around the world, andwork together on brand value-oriented initiatives with the joint aim ofachieving growth.
We will work to promote and spread Mitsubishi Motors-ness in order tohave customers experience and understand it through a variety of events.

21

Regional Strategy│Main Measures
Spread Value-Oriented Sales by Leveraging the Products with Mitsubishi Motors-ness

ASEAN■ Consecutive rollouts of new products■ Enhancing experience events and touchpoints with customers■ Production and rollout of xEVs suited to the market in each country

Oceania■ Expanding sales in large cities with Outlander PHEV
■ Providing best warranty and total care
■ Strengthening value chain for increased vehicle lifecycle profit

Latin America
Middle East
Africa■ Strengthening sales network■ Digging deeper into private market with new ASEAN products■ Gaining early adopters of xEVs through Outlander PHEV rollout

North America
EuropeChina■ Strengthening cooperation with Alliance members■ Expanding xEV lineup■ Improving CX by strengthening digital tools

Growth Drivers

Leverage Regions

Advanced
Technology
Promotion
Regions

Japan■ Brand boost through plentiful xEV lineup and products with Mitsubishi Motors-ness■ Creating seamless and efficient touchpoints with customers through DX■ Strengthening value chain for maximized vehicle lifecycle profit

22

From here, I will explain our regional strategy in detail.
First, the GROWTH DRIVERS, ASEAN and Oceania.
ASEAN is a pillar for us, and from FY2023, we will roll out a series of new productsthat encapsulate Mitsubishi Motors-ness.
We will work to improve the brand value of Mitsubishi Motors by closely linking
those products and opportunities for customers to experience them.
And in ASEAN countries we will grow the number of outlets, increase area
coverage, improve store facilities and customer interaction methods, improve
convenience for customers through digitalization, and take other actions toachieve quality improvement in both sales and services.
Next is Oceania.
Oceania has always been an extremely important market for Mitsubishi Motors
as it is a pillar of profitability.
We believe that it is already a market in which customers feel a connection with
Mitsubishi Motors-ness, but we will work to improve brand value through new
products and grow it into an even more solid revenue base as well as boosting
the value chain.
The Outlander PHEV is a product that encapsulates Mitsubishi Motors-ness, andwith its product concept of “I-FU-DO-DO” or authentic and majestic in Japanese,
we believe it can be a game changer in the Oceania market.
By leveraging this product, we will strive to increase our presence in large cities.
At the same time, we will strengthen touch points with customers in after sales
through offering the best warranty and total care, in order to increasecustomers’ trust in us.
＜Continued on next page＞

22

Next, let’s look at LEVERAGE REGIONS.
These are regions where we can roll out ASEAN products into which wehave concentrated management resources, and we shall work tofurther strengthen our business here.
We will strengthen cooperation with local distributors and dealers andwork to deepen their understanding of our products and Mitsubishi
Motors-ness.
In addition to strengthening our sales network, we will leverage therollout of attractive new products to properly dig deeper into theprivate use market, and improve our presence and penetration.
Finally, ADVANCED TECHNOLOGY PROMOTION REGIONS.
For North America, Europe, and China, we will enhance our productlineup including xEVs by working with the Alliance members.
In the sales and marketing area, we will work on shifting to the use ofdigital technologies.
For the new Outlander in North America, we embarked on new
initiatives using digital tools, including unveiling the product via Amazon
Live.
The new mid-term plan involves taking on the challenge of being able
to provide new value and experience to customers by enhancing digital
tools ahead of other regions, such as expanding online sales andimplementing more advanced digital marketing.
Our home market of Japan, we will continue to strengthen our businessstructure thoroughly in the coming three years.
Mitsubishi Motors is currently rolling out 2 models of SUV PHEV and 2
models of Kei BEV in the Japanese market, giving us a strong xEV lineup
for a mid-sized manufacturer.
Joining this lineup in May will be the Kei-SUV DELICA MINI unveiled at
the Tokyo Auto Salon in January.
We believe that this product makes a clear difference from other Kei
super height wagon, and we can confidently recommend its
overwhelming driving performance on even rough roads with its
specialized tuning.
With this as our starting point, we will work to further enhance ourlineup of products that encapsulate Mitsubishi Motors-ness.
In the mature Japanese market, we will focus on each individual
customer and build seamless touch points regardless of whether it isonline or offline. We will enrich a variety of events that enable
customers to experience our products and feel the joy of owning a
Mitsubishi Motors products, while at the same time achieving digitaltransformation.

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Product Rollout │ Global

Roll out 16 models (inc. 9 xEV models)over the next 5 years
ICE models

MPV

3-row SUVPPV

Kei-Passenger

xEV models

DELICA MINIXFC CONCEPT

2-row SUV
BEV

PickupBEV

PickupASX

COLT

2-row SUV
HEV

Alliance
BEV

XPANDER
HEV

MPV
HEV

Alliance
BEV

23

Next, I will explain the product strategy to support our growth in the medium
term.
Over the next five years, we will roll out 16 new vehicles, including 9 xEVs.
In terms of existing segments, we will launch new models for our mainstay
frame vehicles, launch new and electrified models of the Xpander that is highly
regarded not only in ASEAN but also in other regions, and work to achieve further
expanded sales and increased revenue.
We will also roll out products in new segments.
Following from the two-row SUV that we unveiled in Vietnam recently, we will
steadily roll out products for our core regions, including a new three-row SUV.
In ADVANCED TECHNOLOGY PROMOTION REGIONS, we will accelerate the rollout
of a range of xEVs with the cooperation of our Alliance partners Renault andNissan.

23

Product Rollout │ Growth Drivers / Leverage Regions
Expand Segment Coverage in Growth Drivers and Leverage Regions

Roll out 12 models (inc. 7 xEV models)over the next 5 years
ICE models

PPV

MPV

3-row SUVxEV models

PickupBEV

Pickup

XFC CONCEPT

ASX

2-row SUV
BEV

AllianceBEV

2-row SUVHEVXPANDER
HEV

MPV
HEV

24

Shown on this slide is the product rollout for GROWTH DRIVERS and LEVERAGEREGIONS.
Over the next five years, we will roll out 12 new vehicles, including 7 xEVs.
As you know, interest in xEVs is growing among consumers in ASEAN countries
also.
Mitsubishi Motors shall undertake vehicle electrification, local production, andproduct rollout in a way that is suitable for the use and infrastructure of themarket in each country.
The two-row SUV “XFC Concept” for ASEAN has built into it features to deal withthe way cars are used in ASEAN countries. It has the “Wet mode”, introduced forthe first time in a Mitsubishi vehicle, is designed with use in ASEAN countries inmind, such as enabling safe driving even on roads flooded, and with its plenty ofground clearance that ensures driving performance, the end result is a productthat truly encapsulates Mitsubishi Motors-ness.
For our mainstay pickup truck, we plan to soon roll out our next generation
model and add a BEV in future.
We will also boost our product enhancement for our flagship PPV models in
ASEAN.
＜Continued on next page＞

24

We will work on new models for the Xpander, which has been very
highly regarded since it was launched in 2017, and take on thechallenges to provide even greater added value to our customers.
We will roll out HEV models to enrich the xEV lineup as part of ouractions to add value.
These plentiful products will also be rolled out in Latin America, theMiddle East, and Africa, and by expanding our segment coverage, weshall increase the options available to our customers in the relevant
areas to improve customer satisfaction even further.

24

Product Rollout │Schedule (Challenge 2025 Period)
2025

2023

Pickup

Next generation model
Frame

PPV

ICE

XFC Concept
Passenger

3-row SUV

DELICA MINI

Kei-passenger

OUTLANDERPHEV model rollout in North America, Oceania, Europe

Alliance - Renault
Passenger

Alliance - Nissan

xEVs
XPANDER Series

(HEV)
(HEV)
Keicommercial

Re-launch/ASEAN rollout

2-row SUVMINICAB-MiEV

25

This slide shows a rough product rollout schedule for the three years of the new
mid-term plan.
FY2023, the first year of the new mid-term plan, will see the rollout of two-row
SUV and next generation pickup truck models focusing on GROWTH DRIVERS andLEVERAGE REGIONS, with the DELICA MINI being released in our home market ofJapan.
With regards to xEVs, we will roll out our flagship Outlander PHEV model in
Oceania and Europe.
And to strengthen our European network, several models will be provided by
Renault.
At the end of last year, we restarted sales of our Kei-commercial BEV, Minicab
MiEV that provides unique value in the Japanese market.
We have had many inquiries since its re-launch, and we expect to leverage thisproduct as a pillar for electrification and also as a tool to explore new mobility
business.
Furthermore, we recently revealed our first ever plan for its overseas productionin Indonesia.
There is a growing demand for the rollout of Kei-commercial EV in the ASEAN
market, so we intend to proceed with rollout in the ASEAN region.

25

Towards Sustainable GrowthMaterial Issues with a High Impact

Social Value Creation

Related
SDGs

Topmost Issues
Contribution to asustainable society
Responding toclimate change andenergy issues

Delivering products
which help prevent roadtraffic accidents

Improvement of product,sales, and service quality

Contributing to local
economy throughbusiness activities

Promoting diversity andinclusion, and enhancementof employee engagement

Strengthening governanceand ensuring compliance

The provision to customers of afulfilling mobility life thatawakens their adventurous spiriton the basis of reliability
backed up by technology that
achieves “Eco-friendly x Safety,
Security and Comfort”

Sustainable business growththrough stakeholder trust26

Next, this is our thoughts on sustainable growth.
With the vision of “creating a vibrant society by realizing the potential ofmobility” we will go about our business with the goal of achieving a sustainable
society and achieving sustainable growth.
In doing so, we pledge to provide a high level of value through products andmobility services that seek to provide Mitsubishi Motors-ness to customers.
As shown on this slide, Mitsubishi Motors has identified the material issues andtopmost issues when it comes to taking business forward, and will aim toachieve not only carbon neutrality but also to respect human rights, to establish
a workplace where diverse talent can thrive and to manage the company with ahigh level of transparency for every stakeholder.

26

Carbon Neutrality │ Environmental Targets
Accelerate Initiatives to Achieve Carbon Neutrality
Environmental Targets 2030
(update)Average CO2 emissions
from new vehicles-40%(Tank to Wheel, compared to FY2010)

xEVs
sales mix

50%
FY2035100%

CO2 emissions
from business activities-50%(Scope 1 and 2 total emissions,compared to FY2018)

CO2 emission reduction activities through collaboration with suppliers/transporters
in the fields of procurement and distribution
27

Among them, I am talking about carbon neutrality.
In order to contribute to the achievement of a society with net zero CO2emissions by 2050, Mitsubishi Motors has worked to reduce its own CO2emissions.
This is our updated “Environmental Targets 2030”.
*

Firstly, we will reduce average CO2 emissions from new vehicles by 40%
from FY2010 on a Tank-to-Wheel basis.
In addition to expanding sales of xEVs in parallel to improving ICE productfuel efficiency technology, we will work to utilize biofuels in diesel models.

*

We will work toward making 50% of new vehicle sales xEVs by 2030.
With regards to existing models, we will expand the regions in which we rollout our flagship Outlander PHEV, and work to grow sales of the Keicommercial EV Minicab MiEV that we relaunched last year.
With regards to new products, we are undertaking development of xEVs forour core pickup model and hybrid versions for ASEAN models.
Furthermore, we shall enhance our lineup of xEVs for ADVANCEDTECHNOLOGY PROMOTION REGIONS through collaborations with our Alliancepartners, and drive forward electrification at the global level.

＜Continued on next page＞

27

*Finally, in terms of CO2 emissions from our business activities, wewill aim for a reduction of 50% compared to FY2018 levels throughactions including boosting energy saving measures, switching fuels,and expanding our use of renewable energy focusing on the
introduction and expanded use of solar power generation at all
major plants.

Towards a solution of the problem of climate change, which is an issue
at the global level, we are committed to working on those initiatives.

27

Carbon Neutrality │ Battery Procurement
Battery Procurement for Carbon Neutrality
Target for 15GWh (up to 2030)
Total Investment ¥210.0bn(GWh)

AllianceandStrategic Partners

FY2021

FY2030xEVs sales mix

xEVs sales mix

7%

50%
28

I would now like to give an explanation regarding the battery procurement thatis essential to achieve carbon neutrality.
Going forward, we shall roll out BEV, PHEV, and HEV in GROWTH DRIVERS andLEVERAGE REGIONS while enhancing our xEV lineup with the Alliance in
ADVANCED TECHNOLOGY PROMOTION REGIONS, and aim to make the xEVs sales
mix 50% of the total new vehicles sold by FY2030.
We have calculated that in order to take this electrification strategy forward, weneed to procure around 15GWh of batteries per year by 2030, and we hope towork with our battery suppliers to achieve this.
We also envisage an investment on a total scale of 210 billion yen to realize it.

28Alliance
Contribution to the AllianceContribution to Equity in Earnings

K-Car Production

Collaborations in
ASEAN/Oceania

Development Leader for Nextgeneration frame productMutual Use ofPowertrain includingElectric Powertrain

Platform

Collaborations

Enriched Lineup with the
OEM Model
Europe: Renault/Nissan
North America: Nissan

Battery Procurement

Autonomous Driving / Active Safety Technology / E-Architecture
Support from Alliance members
29

Our alliance with Renault and Nissan is essential to achieve sustainable growth,and we plan to increase our contribution to the Alliance going forward.
In cooperation with the Alliance members thus far, we have leveraged our
synergy in a range of situations, including mutually complementary OEM
products, joint development of vehicles, collaboration in manufacturing, and jointpurchasing.
The field in which Mitsubishi Motors needs to contribute is contribution to equity
in earnings. We aim to achieve the management KPIs we hold up as our goals,
and to contribute to sustainable profit.
Next is our alliance in the Kei-car business.
With regards to the joint planning and production that we have worked on as
NMKV thus far, the Mizushima Plant, which is a joint production hub, hasachieved mixed production of ICE and EV with only a small level of CAPEX, and isheld in high regard by external parties.
In the field of product development, we will take the leadership in thedevelopment of frame products that are essential and mainstay products for us.
We have also started looking into new collaborations in the ASEAN / Oceania
markets.
＜Continued on next page＞

29

In our alliance, we shall continue our mutually complementary system
where we undertake initiatives such as mutually utilizing electrification
technology and electrification components or employing an OEM modelin order to enrich our lineups.
Thus far, Nissan has shared with us platforms typified by CMF-CD andcutting-edge technologies for autonomous driving, active safety
technology, and E-architecture. Models that incorporate thesetechnologies have been very well-received by the market.

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Mobility Business │ Overview of Initiatives
An Important Pillar of Revenue
after Existing Business

1

Vehicle Sales

2

Financing (Leasing)3

After Sales

4

Mobility BusinessInitiatives for Energy Management /Battery Reuse / Data Business
Mobility Services
Platform
Energy Management/Battery Reuse
Connected Car Services/Data Business
Fleet Management

Chargers

Used batteries

 Utilize vehicle data / vehicle remote operation
functions / used traction batteries as unique assets ofautomotive manufacturers
 Collaborate with partners / municipalities, and growthe mobility business into a fourth pillar of revenue
after vehicle sales, financing (leasing), and after sales

 Initiatives for energy management and reuse of usedbattery toward carbon neutrality
 Business rollout using vehicle data
 Provision of total mobility solutions combining
leasing and after sales

30

Next, I will explain our mobility business.
The automotive industry will henceforth face an era of major transition,centering on the mobility business.
Against this backdrop, Mitsubishi Motors will work to build its mobility businessby leveraging digital technology and utilize vehicle data, vehicle remote
operation functions, used traction batteries as unique assets of automotive
makers.
We believe that the spread of xEVs represents a chance to do new business inthe form of reuse of used batteries, energy management, and data businessusing vehicle driving and battery data, and in collaboration with our partners andmunicipalities we will grow this mobility business, which represents a unique
opportunity for us as an automotive maker, into a fourth pillar of revenue after
vehicle sales, financing (leasing), and after sales.

30

Mobility Business │ Case Studies
Energy Management(Advance Decarbonization Regions/ Collaboration with GI Fund*)Battery Reuse(Self-directed Street Lightwith Used Batteries)

EV/PHEV
Charger/
Discharger- Solar Panel- Self-directed Street Light(Public facilities, etc.)

Battery Energy
Storage Service

 Collaboration with municipalities and the Japan Post
Group on carbon neutrality using traction batteries/
used batteries, and use as a power supply in natural
disasters (power cuts, etc.)
 Collaboration with government measures such as Advance
Decarbonization Regions and GI Fund in these initiatives
 First initiative in Okazaki City, and aim to expand thisgoing forward Developing Self-directed Street Light utilizing battery
modules with MIRAI-LABO (to be set up in FY2022)
 Start testing to evaluate CO2 reductions for
manufacturing through reuse, and possibility to run
without an external electricity supply
 Expansion to public facilities in municipalities,
factories, etc.

*Green Innovation Fund from the Ministry of Economy, Trade and Industry

31

This slide shows specific case studies.
While making use of the Green Innovation Fund from the Ministry of Economy,
Trade and Industry, we are working on demonstration testing of energy
management with municipalities and private companies aiming to achievecarbon neutrality. These partners include Okazaki City in Aichi Prefecture and theJapan Post Group.
In this demonstration testing, we utilize traction batteries as mobile batteries inorder to help coordinate the supply and demand of electricity and provide an
emergency power source in case of power cuts due to natural disasters andother such situations.
Furthermore, we are also working on an initiative to utilize used batteries withthe aim of reducing CO2 emissions during manufacturing while also developing“self-directed street light” with MIRAI-LABO, and we plan to extend this to public
facilities in municipalities and plants once favorable results have been obtained
through the demonstration testing.

31This slide explains an initiative that utilizes vehicle driving and battery data.
In addition to connected car services that are already provided to customers, wewill look into providing fleet management services and package services
including xEV and energy management to support the reduction of a building’s
emissions to zero with a focus on B2B customers.

32

HR Strategy to Sustain Challenge 2025
Establish Great Workplace to Nurture Employee Engagement and HR Development
as the Base for Action Guidelines “MMC WAY”
Action Guidelines “MMC WAY” (Updated in FY22)

Strategic HR Priorities
Build Better Place to Work
 Adopt location-free work arrangements
 Introduce flexible working style in consideration ofchildcare and family nursing care

Enhance Learning Opportunities/Reskilling Programs
 Expand mutual talent exchanges between Japanand overseas and global career development
programs Launch digital reskilling programs to support DX Embed technical expertise into HR system and processes

Secure/Cultivate Diverse Workforce
 Implement flexible total rewards strategy and structure Develop vibrant workplaces in which employees
appreciate the differences to fulfill their potential

33

Finally, this slide explains the HR strategy to sustain the new mid-term plan
Challenge2025.
As the business environment changes rapidly, the key for us to grow sustainably
and achieve improved corporate value is “employees”.
In FY2022, we had many discussions of the ideal standards for Mitsubishi Motors
and the important things that need to be practiced as a company, and we
updated our action guideline “MMC WAY”.
The new “MMC WAY” is something that all executives and employees will shareand challenge themselves to implement as they go forward together to reachour goals.
And toward this, we will work to establish a great workplace to nurture employee
engagement and development.
*
We will adopt location-free work arrangements and introduce flexible
working style in consideration of childcare and family nursing care to build
better workplace.
*
We will also enrich our education and re-skilling programs. In specific terms,
we will expand mutual talent exchanges between Japan and overseas andglobal career development programs. In addition, we will launch digital
reskilling programs to support DX and embed technical expertise into the
HR system and processes*
And with the aim of being a company where diverse talent can thrive, wewill work to retain a variety of talented people with a flexible total rewards
strategy and structure, and establish a workplace in which those employees
fulfill their potential.

33

This was an explanation of the new mid-term plan “Challenge2025”.
We look forward to your continued support for our future-orientated initiatives
as we go forward.
Thank you for your attention.

34

This presentation contains forward-looking statements, based on judgments and estimates thathave been made on the basis of currently available information. By nature, such statements are
subject to uncertainty and risk. Therefore, you are advised that the final results might besignificantly different from the aforementioned statements due to changes in economic
environments related to our business, market trends, fluctuations in interest rates and exchange
rate, changes in laws, regulations and government policies, etc.
Potential risks and uncertainties are not limited to the above and Mitsubishi Motors is not under
any obligation to update the information in this presentation to reflect any developments or eventsin 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 thatneither 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 inthis presentation.

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