Financial Information as of March 31, 2024

(The English translation of the“Yukashoken-Houkokusho” forthe year ended March 31, 2024)

MITSUBISHI MOTORSCORPORATION

Table of Contents
Page
Cover
A.

Company Information ................................................................................................................................................

1

I.

Overview of the Company .........................................................................................................................................

1

1. Summary of business results ...................................................................................................................................

1

2. Company history .....................................................................................................................................................

3

3. Description of business ............................................................................................................................................

4

4. Status of subsidiaries and associates ........................................................................................................................

6

5. Employees ...............................................................................................................................................................

11

Overview of Business ..................................................................................................................................................

13

1. Management policy, business environment and issues to be addressed ...................................................................

13

2. Approach to and initiatives for sustainability ..........................................................................................................

14

3. Business-related risks ..............................................................................................................................................

21

4. Management analysis of financial position, operating results and cash flows .........................................................

26

5. Critical contracts for operation ................................................................................................................................

32

6. Research and development activities .......................................................................................................................

33

Information about Facilities.........................................................................................................................................

45

1. Outline of capital expenditure .................................................................................................................................

45

2. Information about major facilities ...........................................................................................................................

46

3. Plans for acquisition and disposal of facilities .........................................................................................................

50

Information about Reporting Company .......................................................................................................................

52

1. Information about shares, etc. ..................................................................................................................................

52

2. Acquisition of treasury shares .................................................................................................................................

62

3. Dividend policy .......................................................................................................................................................

63

4. Information about corporate governance, etc. .........................................................................................................

64

II.

III.

IV.

V.

Financial Information .................................................................................................................................................. 108
1. Consolidated financial statements ........................................................................................................................... 109
2. Non-consolidated financial statements .................................................................................................................... 165

VI.

Overview of Operational Procedures for Shares.......................................................................................................... 181

VII.

Reference Information of Reporting Company ........................................................................................................... 182
1. Information about parent company, etc. of reporting company ............................................................................... 182
2. Other reference information .................................................................................................................................... 182

B.

Information on Guarantors for the Company ............................................................................................................... 184

Independent Auditor’s Report
Internal Control Report
Confirmation Letter[Cover page]
Document title:

Annual Securities Report (“Yukashoken-Houkokusho”)

Clause of stipulation:

Article 24, paragraph (1) of the Financial Instruments and Exchange Act

Place of filing:

Director-General of the Kanto Local Finance Bureau

Filing date:June 21, 2024

Accounting period:

Full-year FY2023 (April 1, 2023 through March 31, 2024)

Company name:

三菱自動車工業株式会社 (Mitsubishi Jidosha Kogyo Kabushiki Kaisha)Company name in English:

MITSUBISHI MOTORS CORPORATION

Title and name ofrepresentative:

Takao Kato, Representative Executive Officer, President & CEO

Address of registeredheadquarters:

3-1-21, Shibaura, Minato-ku, Tokyo, Japan

Telephone number:+81-3-3456-1111 (Main telephone number)

Name of contact person:

Michihiro Toyomizu, General Manager, Accounting Dept.
Keiko Sasaki, Vice President and General Manager, IR Office

Nearest place of contact:

3-1-21, Shibaura, Minato-ku, Tokyo, Japan

Telephone number:+81-3-3456-1111 (Main telephone number)

Name of contact person:

Michihiro Toyomizu, General Manager, Accounting Dept.
Keiko Sasaki, Vice President and General Manager, IR OfficePlace for public inspection:

Tokyo Stock Exchange, Inc.
2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo, Japan

A. Company Information
I. Overview of the Company
1. Summary of business results(1) Transition of summary of business results for the five most recent fiscal years
Fiscal year

FY2019Fiscal year ended

FY2020

FY2021

FY2022

FY2023

March 31, 2020 March 31, 2021 March 31, 2022 March 31, 2023 March 31, 2024

Net sales

Millions ofyen

2,270,276

1,455,476

2,038,909

2,458,141

2,789,589

Ordinary profit (loss)

Millions ofyen(3,843)(105,203)

100,969

182,022

209,040

Profit (loss) attributable Millions ofto owners of parent
yen(25,779)(312,317)

74,037

168,730

154,709

Comprehensive income

Millions ofyen(67,458)(259,691)

106,757

202,703

232,786

Net assets

Millions ofyen

788,363525,251

630,301

830,376

1,044,456

Total assets

Millions ofyen

1,938,123

1,856,279

1,928,443

2,201,524

2,454,470

Net assets per shareYen

519.15341.44407.82538.28679.45

Basic earnings (loss)
per shareYen(17.32)(209.88)49.76

113.38103.97

Diluted earnings per
share

Yen

–

–

49.74

113.36103.96Equity-to-asset ratio

%

39.87

27.36

31.46

36.39

41.16

Return-on-equity ratio%(3.14)(48.78)

13.28

23.97

17.08

Price/earnings ratio

Times

–

–

6.65

4.60

4.86

Net cash provided by(used in) operating
activities

Millions ofyen

18,786(41,537)

118,114173,576

140,806

Net cash provided by(used in) investing
activities

Millions ofyen(105,712)(101,323)(69,123)(53,145)(138,865)

Net cash provided by(used in) financing
activities

Millions of
yen

9,624

168,291(10,234)(61,865)

37,674

Cash and cash
equivalents at end of
periodMillions ofyen

399,588444,619

511,473595,930

674,204

Number of employees[Annual average
32,17130,091
28,79628,42828,982
number of temporary
Number[7,558][6,434][7,948][8,123][8,967]
employees not includedin the above figures](Notes) 1. The number of employees is the number of employees currently on duty. Number of temporary employees indicatedchanged from the number at the end of the fiscal year to annual average in FY2023.
2. Diluted earnings per share for FY2019 and FY2020 are not shown even though there are potential shares, because basic
loss per share is reported for each of the fiscal years.
3. Price/earnings ratios for FY2019 and FY2020 are not shown because basic loss per share is reported for each of the fiscal
years.
4. Since FY2020, for the calculation of the “net assets per share,” the shares of Mitsubishi Motors Corporation (“MMC”)
held by the Board Incentive Plan (BIP) Trust, which are included in treasury shares, have been excluded from the total
number of issued shares at the end of the period. Furthermore, when calculating the “basic earnings (loss) per share,” and“diluted earnings per share” these same shares, which are included in treasury shares, have been excluded from thecalculation of the average number of shares during the period.
5. MMC has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) andrelevant revised ASBJ regulations from the beginning of FY2021, and the key management indices for FY2021 onward
are those after applying the accounting standard and relevant revised ASBJ regulations.

- 1 -(2) Transition of significant non-consolidated business indicators for the five most recent fiscal years
Fiscal year

FY2019FY2020

FY2021

FY2022

FY2023Fiscal year ended

March 31, 2020

March 31, 2021

March 31, 2022

March 31, 2023

March 31, 2024

Net sales

Millions ofyen

1,802,415

1,092,242

1,614,787

2,045,567

2,348,961

Ordinary profit (loss)

Millions of
yen

6,456

(145,996)

52,093

196,864

190,792

Profit (loss)

Millions ofyen(7,037)(273,405)

40,149189,066

166,108

Common stock

Millions ofyen

284,382

284,382

284,382

284,382

284,382

Total number of issued
sharesThousands ofshares1,490,282

1,490,282

1,490,282

1,490,282

1,490,282

Total net assets

Millions ofyen

550,106

277,260

318,125

506,999

657,491

Total assets

Millions ofyen

1,093,709

985,314985,999

1,226,610

1,361,425

Net assets per shareYen

369.39186.15

213.68340.63442.20

Dividend per share[Interim dividend per shareincluded in the above
amount]

Yen
[Yen]

10.00
[10.00]

–
[–]

–
[–]

5.00
[–]

10.00
[5.00]

Basic earnings (loss) per
share

Yen

(4.73)(183.73)26.99

127.04111.63

Diluted earnings per share

Yen

–

–

26.97

127.02111.62Equity-to-asset ratio

%

50.27

28.10

32.24

41.33

48.29

Return-on-equity ratio%(1.23)(66.15)

13.50

45.84

28.53

Price/earnings ratio

Times

–

–

12.26

4.11

4.53

Dividend payout ratio

%

–

–

–

3.94

8.96

Number of employees[Annual average numberof temporary employees
not included in the above
figures]Number14,407[3,276]

13,951[2,574]

13,829[3,441]

13,671[3,530]13,844[3,637]

Total shareholder return[Comparative indicator:
TOPIX (DividendIncluded)]

%
[%]

53.74
[90.50]55.27[128.63]57.99[131.18]

91.33[138.81]90.27[196.19]

Highest share price

Yen

649.0

352.0

426.0

665.0

681.0

268.0
187.0
253.0
301.0
419.5
The number of employees is the number of employees currently on duty. Number of temporary employees indicatedchanged from the number at the end of the fiscal year to annual average in FY2023.
Diluted earnings per share for FY2019 and FY2020 are not shown even though there are potential shares, because basic
loss per share is reported for each of the fiscal years.
Price/earnings ratios and dividend payout ratios for FY2019 and FY2020 are not shown because basic loss per share isreported for each of the fiscal years. In addition, the dividend payout ratio for FY2021 is not shown as there is no
dividend.
From April 4, 2022, the highest share price and lowest share price are those recorded on the Tokyo Stock Exchange
Prime Market, and before that date, the prices are those recorded on the first section of the Tokyo Stock Exchange.
Since FY2020, for the calculation of the “net assets per share,” the shares of MMC held by the Board Incentive Plan
(BIP) Trust, which are included in treasury shares, have been excluded from the total number of issued shares at the endof the period. Furthermore, when calculating the “basic earnings (loss) per share” and “diluted earnings per share,” thesesame shares, which are included in treasury shares, have been excluded from the calculation of the average number ofshares during the period.
MMC has applied the “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, March 31, 2020) andrelevant revised ASBJ regulations from the beginning of FY2021, and the key management indices for FY2021 onward
are those after applying the accounting standard and relevant revised ASBJ regulations.

Lowest share price(Notes) 1.
2.
3.
4.
5.

6.

Yen

- 2 -

2. Company history
Date

OutlineApril 1970

MMC incorporated as wholly-owned subsidiary of Mitsubishi Heavy Industries, Ltd. (MHI)

June 1970

MMC started business taking over MHI motor vehicle division operations. MHI’s certain facilities of Kyoto Works(presently Kyoto Works Kyoto Plant), Nagoya Motor Vehicle Works (presently Okazaki Plant; the same shall apply
hereinafter), Mizushima Motor Vehicle Works (presently Mizushima Plant) and one other Vehicle Works transferred
operational authority from MHI to MMC

August 1977

MMC constructed Nagoya Motor Vehicle Works Okazaki Plant

December 1979

MMC constructed Kyoto Works - Shiga Plant

October 1980

MMC and Mitsubishi Corporation jointly established Mitsubishi Motors Australia Ltd. (MMAL) (MMC subsequently
acquired all MMAL shares in December 2001)

December 1981

MMC and Mitsubishi Corporation jointly established Mitsubishi Motors Sales of America, Inc. (MMSA)

October 1984

MMC took over management of Mitsubishi Motor Sales Co., Ltd. (established in October 1964)

October 1985

MMC established Diamond-Star Motors Corporation (DSM) as a joint venture company with Chrysler Corporation(MMC acquired all DSM shares in October 1991 and renamed “Mitsubishi Motor Manufacturing of America, Inc.”(MMMA) in July 1995)

December 1988

MMC shares listed on First Section of Tokyo, Osaka and Nagoya Stock Exchanges (MMC shares delisted from Nagoya
Stock Exchange in November 2003 and delisted from Osaka Stock Exchange in November 2009)

March 1995

MMC acquired the majority of shares in Toyo Koki Co. Ltd. (renamed “Pajero Manufacturing Co., Ltd.” (PMC) in July
1995 and MMC subsequently acquired all PMC shares in March 2003. PMC’s production ended in August 2021 andfactories shut down.)

November 1996

MMC commissioned Tokachi Proving Ground in Hokkaido.

August 1997

MMC acquired the majority of shares in MMC Sittipol Co., Ltd. (renamed “Mitsubishi Motors (Thailand) Co., Ltd.”(MMTh) in November 2003 and MMC acquired all MMTh shares in August 2008)

February 1999

MMC acquired shares in Netherlands Car B.V. bringing its equity interest up to 50% (15% stake held by MMC
associates included) (MMC additionally acquired shares in Netherlands Car B.V. in March 2001, thereby increasing its
equity interest up to 100% (15% stake held by MMC associates included))

March 2000

MMC signed Memorandum of Understanding on business alliance for overall passenger vehicle operations including
capital participation with DaimlerChrysler AG (DaimlerChrysler AG acquired 34% of shares in MMC in October 2000
and sold all shares in November 2005)

December 2002

Mitsubishi Motors Europe B.V. (MME) (established in January 1977) implemented an absorption-type merger with
Mitsubishi Motors Sales Europe B.V. (established in March 1993)

January 2003

MMSA, MMMA and one other company merged to form Mitsubishi Motors North America, Inc. (MMNA)

January 2003

MMC spun off truck and bus operations into a separate company, incorporating them as Mitsubishi Fuso Truck and
Bus Corporation (MFTBC).

March 2003

MMC transferred a 43% stake in MFTBC to DaimlerChrysler AG and a collective 15% stake to 10 Mitsubishi groupfirms, leaving it with a shareholding of 42% in MFTBC (MMC transferred all remaining MFTBC shares toDaimlerChrysler AG in March 2005)

May 2003

MMC moved its head office to 2-16-4, Konan, Minato-ku, Tokyo

January 2007

MMC moved its head office to 5-33-8, Shiba, Minato-ku, Tokyo

March 2008

Car production terminated at MMAL

April 2010

Established a new plant in Russia under the agreement between MMC and France’s PSA Peugeot Citroen

December 2012

MMC and MME transferred all shares in Netherlands Car B.V. to VDL Groep B.V. in the Netherlands

March 2015

MMC and Mitsubishi Corporation jointly established PT Mitsubishi Motors Krama Yudha Indonesia (MMKI)

November 2015

Car production terminated at MMNA

May 2016

MMC and Nissan Motor Co., Ltd. signed Strategic Alliance Agreement with regard to Capital and Business Alliance(Nissan Motor Co., Ltd. acquired 34% of shares in MMC in October 2016)

January 2019

MMC moved its head office to 3-1-21, Shibaura, Minato-ku, Tokyo

June 2019

MMC transitioned to a company with a Nomination Committee, and others

August 2021

Production ended at PMC and factories shut down

April 2022

MMC shares that had been listed on the First Section were transferred to the Prime Market due to a restructuring of themarket segments implemented by Tokyo Stock Exchange.

- 3 -3. Description of business
The MITSUBISHI MOTORS CORPORATION group (the “MMC group”) comprises MMC, 34 consolidated
subsidiaries and 17 equity-method associates (as at March 31, 2024). The MMC group is engaged in thedevelopment, production and sales of passenger vehicles and their parts and components, as well as in auto
financing operations. MMC conducts most of the development work.
In Japan, MMC produces standard and small passenger vehicles and Kei-cars and Mitsubishi-brand vehicles are
sold in Japan by Higashi Nihon Mitsubishi Motor Sales Co., Ltd. and Nishi Nihon Mitsubishi Motor Sales Co.,
Ltd. Mitsubishi Automotive Engineering Co., Ltd. undertakes some of the development of MMC products.
Mitsubishi Automotive Logistics Technology Co., Ltd. is responsible for the sales of MMC genuine parts andother products, some pre-delivery inspection and maintenance work, and logistics operations, etc. for parts andother products. Moreover, Pajero Manufacturing Co., Ltd., MMC’s consolidated subsidiary, which has ended its
production in August 2021 for the reorganization of production system, was excluded from the scope of
consolidation due to its completion of liquidation in the second quarter ended September 30, 2023.
Outside Japan, Mitsubishi-brand cars are produced and sold in Thailand by Mitsubishi Motors (Thailand) Co.,
Ltd., etc. and produced in Indonesia by PT. Mitsubishi Motors Krama Yudha Indonesia, etc. Due to the structuralreforms of China business, GAC Mitsubishi Motors Co., Ltd, which was an affiliate of the MMC group in China,
was excluded from the scope of the application of the equity method due to the sales of equity interests in the
fourth quarter ended March 31, 2024.
Auto lease and sales financing services, etc. are provided by Mitsubishi Motors Finance Co., Ltd.
In addition to the above, MMC and Nissan Motor Co., Ltd. have forged strategic alliance to cooperate in areas
including purchasing, common vehicle platforms, technology-sharing, joint plant utilization and growth markets
in May 2016.
The MMC group structure and constituent company products and services outlined above are shown in the
diagram below. (only main companies are shown).

- 4 -(Major products)●: Models on the market
Product
Japan●
Electric vehicles
OUTLANDER (PHEV)●ECLIPSE CROSS (PHEV)
XPANDER (HEV)–XPANDER CROSS (HEV)–ASX (PHEV/HEV)*–COLT (HEV)*–●eK X EV●MINICAB EV/L100 EV●
SUVs and pickup
RVR/OUTLANDER SPORT/ASX
trucksASX*–●ECLIPSE CROSSOUTLANDER–●TRITON/L200/L200 SPORTERO/STRADAPAJERO/MONTERO–
PAJERO SPORT/MONTERO SPORT–XFORCE–
Passenger cars andMIRAGE/SPACE STAR–
minivans
ATTRAGE/MIRAGE G4–●
DELICA D:2*●
DELICA D:5
XPANDER–
XPANDER CROSS
–
COLT*
–
●
Minicars
eK X●
eK wagon●eK space●
DELICA MINI●TOWNBOX*●MINICAB Truck*●
MINICAB Van*
(Notes) 1. Underlined names are those used solely outside Japan.
2. Those marked with asterisks (*) are vehicle models provided by OEM.

- 5 -Overseas
●
●
●
●
●
●
–
●
●
●
●
●
●
●
●
●
●
●
–
–
●
●
●
–
–
–
–
–
–
–

4. Status of subsidiaries and associates(1) Parent company
Not applicable.
(2) Consolidated subsidiaries(As of March 31, 2024)
Capital stock(Millions ofyen)

Business lines

Percentage ofvoting stock
holding(%)

Relationship

Company nameLocation

Higashi Nihon
Mitsubishi Motor Sales
Co., Ltd.

Meguro-ku, Tokyo

100

Automobile sales

100.0

Sales of MMC products
Concurrent positions of corporate
officers:
Yes
Leasing of equipment:
Yes

Nishi Nihon Mitsubishi
Motor Sales Co., Ltd.

Yodogawa-ku,
Osaka

100

Automobile sales

100.0

Sales of MMC products
Concurrent positions of corporate
officers:
Yes
Leasing of equipment:
Yes

436

Automobiletransport andmaintenance
Sales of automobile
parts

100.0

Transport and maintenance of MMC
products
Sales of parts of MMC products
Concurrent positions of corporate
officers:
Yes
Leasing of equipment:
Yes

100.0

Development of some MMC
products
Concurrent positions of corporate
officers:
Yes
Leasing of equipment:
Yes

100.0

Manufacturing of parts of some
MMC products
Concurrent positions of corporate
officers:
Yes
Leasing of equipment:
Yes

100.0

Sales financing services for MMC
products, leasing, rentals and sales,
etc.
Concurrent positions of corporate
officers:
Yes
Leasing of equipment:
Yes
Loans:
Yes

Mitsubishi Automotive
Logistics Technology
Co., Ltd.

Mitsubishi Automotive
Engineering Co., Ltd.

Takatsu-ku,
Kawasaki-shi

Okazaki-shi, Aichi

Kurashiki-shi,
Suiryo Plastics Co., Ltd.
Okayama

Mitsubishi Motors
Finance Co., Ltd.

Minato-ku, Tokyo

350

Automobile
development

100

Manufacture ofautomobile parts

3,000

Auto sales
financing, leasing,rentals and sales,
etc.

- 6 -

Capital stockBusiness lines

Percentage ofvoting stock
holding(%)

Relationship398,812thousand USD

Automobile sales

100.0

Sales of the MMC group products
Concurrent positions of corporate
officers:
Yes

Mitsubishi Motors R&D
of America, Inc.

Ann Arbor,
Michigan,
the United States

2,000 thousand
USD

Investigation,
testing and research
related toautomobiles

100.0(100.0)Development base of the MMC
group automobile in the UnitedStatesConcurrent positions of corporate
officers:
Yes

Mitsubishi Motor Salesof Canada, Inc.

Mississauga,
Ontario,
Canada2,000 thousand
CAD

Automobile sales

100.0

Sales of the MMC group products
Concurrent positions of corporate
officers:
Yes

Mitsubishi Motor Salesof Caribbean, Inc.

Toa Baja,
Puerto Rico

47,500 thousand
Automobile sales
USD

100.0

Sales of the MMC group products
Concurrent positions of corporate
officers:
Yes

Mitsubishi Motors deMéxico S.A. de C.V.

Mexico City,
Mexico92,001 thousand
Automobile sales
MXN

100.0

Sales of the MMC group products
Concurrent positions of corporate
officers:
Yes

Mitsubishi Motors
Europe B.V.*2

Born,
the Netherlands

237,165
thousand EUR

Automobile sales

100.0

Sales of the MMC group products
Concurrent positions of corporate
officers:
Yes

Mitsubishi Motor R&D
Europe GmbH

Trebur,Germany

767 thousand
EUR

Investigation,
testing and research
related toautomobiles

100.0

Development base of the MMC
group automobile in Europe
Concurrent positions of corporate
officers:
Yes

Mitsubishi Motor Sales
Netherlands B.V.

Amstelveen,
the Netherlands

6,807 thousand
EUR

Automobile sales

100.0

Sales of the MMC group products
Concurrent positions of corporate
officers:
Yes

Company nameLocationFranklin,
Mitsubishi Motors North
Tennessee,
America, Inc.*2 *3
the United States- 7 -Location

Capital stockBusiness lines

Percentage ofvoting stock
holding(%)

Relationship

Mitsubishi Motors
Australia, Ltd. *2

Adelaide Airport,
Australia

1,789,934
thousand AUD

Automobile sales

100.0

Sales of the MMC group products
Concurrent positions of corporate
officers:
Yes

Mitsubishi Motors New
Zealand Ltd.

Porirua,
New Zealand

48,000 thousand
Automobile sales
NZD

100.0

Sales of the MMC group products
Concurrent positions of corporate
officers:
Yes

Mitsubishi Motors(Thailand) Co., Ltd.*2

Bangkok,Thailand

7,000,000
thousand THB

100.0

Assembly, sales of the MMC groupproducts
Concurrent positions of corporate
officers:
Yes

MMTh Engine Co., Ltd.

Chonburi,
Thailand

Manufacturing of
20,000 thousand
automobile engines
THB
and press parts

100.0(100.0)

Manufacturing of automobile
engines and press parts for MMTh
products
Concurrent positions of corporate
officers:
Yes

Mitsubishi Motors
Philippines Corp.

Santa Rosa,
Philippines

1,640,000
thousand PHP

Automobile
assembly, sales

100.0

Assembly, sales of the MMC groupproducts
Concurrent positions of corporate
officers:
Yes

Asian Transmission
Corp.

Calamba,
Philippines

770,000
thousand PHPManufacturing of
automobiletransmissions

100.0

Manufacturing of automobiletransmissions for the MMC groupproducts
Concurrent positions of corporate
officers:
Yes

Mitsubishi Motors
Middle East and Africa
FZE

Dubai,
U.A.E.

10,000 thousand Automobile parts
AED
sales

100.0

Sales of parts of MMC products
Concurrent positions of corporate
officers:
Yes

MMC Manufacturing
Malaysia Sdn. Bhd.

Pekan,
Malaysia

20,000 thousand Automobile parts
MYR
sales

60.0

Sales of parts of MMC products
Concurrent positions of corporate
officers:
Yes

PT Mitsubishi Motors
Krama Yudha Indonesia

Bekasi,Indonesia

2,200,000,000
thousand IDR

Automobile
assembly

51.0

Assembly of the MMC groupproducts
Concurrent positions of corporate
officers:
Yes

Mitsubishi Motors
Vietnam Co., Ltd.

Ho Chi Minh City,
Vietnam

410,812,000
thousand VND

Automobile
assembly, sales

41.2

Assembly, sales of the MMC groupproducts
Concurrent positions of corporate
officers:
Yes

Company nameAutomobile
assembly, sales

10 other subsidiaries in
addition to the above- 8 -(3) Equity-method associates(As of March 31, 2024)
Company nameLocation

Capital stockBusiness lines

Percentage ofvoting stock
holding(%)

Tokachi Mitsubishi
Motor Sales Co.,Ltd.

Obihiro-shi,
Hokkaido

60
million JPY

Automobile sales

43.48

Nagano Mitsubishi
Motor Sales Co.,Ltd.

Nagano-shi,
Nagano40
million JPY

Automobile sales

Mie Mitsubishi
Motor Sales Co.,Ltd.

Yokkaichi-shi,Mie58
million JPY

Kagawa Mitsubishi
Motor Sales Co.,Ltd.

Takamatsu-shi,
KagawaMiyazaki
Mitsubishi Motor
Sales Co., Ltd.

Miyazaki-shi,
MiyazakiHigashi Kanto
MMC Parts Sales
Co., Ltd.

Mihama-ku,
Chiba

Yes

Sales of MMC products

Automobile sales

37.11

Sales of MMC products
Concurrent positions ofcorporate officers:
Leasing of equipment:

Yes
Yes

50
million JPY

Automobile sales

23.0

Sales of MMC products
Concurrent positions ofcorporate officers:

Yes

60
million JPY

Automobile sales

38.8

Sales of MMC products
Concurrent positions ofcorporate officers:

Yes

33.0
(10.0)

Sales of parts of MMC products
Concurrent positions ofcorporate officers:
Yes

50.0

Development of some of MMC
products
Concurrent positions ofcorporate officers:
Yes
Leasing of equipment:
Yes

24.99

Sales of the MMC groupproducts
Concurrent positions ofcorporate officers:

Yes

Sales of the MMC groupproducts
Concurrent positions ofcorporate officers:

Yes

100
million JPY

Automobile parts
sales
Automobile
planning anddevelopment

Minato-ku,
Tokyo

10
million JPY

MMD Automobile
GmbHFriedberg,
Germany

30,000Automobile sales
thousand EUR

Jakarta,Indonesia

Sales of MMC products
Concurrent positions ofcorporate officers:

49.86

NMKV Co., Ltd.

PT Mitsubishi
Motors Krama
Yudha Sales
Indonesia

Relationship1,300,000,000
Automobile sales
thousand IDR

8 other associates in
addition to the
above

- 9 -

30.0

(4) Other related companies(As of March 31, 2024)
Company nameLocation

Nissan Motor Co.,
Ltd.*4

Kanagawa-ku
Yokohama-shi

Capital stock(Millions ofyen)

Business lines

605,814

Automobile
assembly, sales
and related
business

Percentage ofvoting stock
held
(%)

Relationship34.0

Mutual sale of products, etc. andsharing technology
Concurrent positions ofcorporate officers:
Yes
Leasing of equipment:
Yes

Sales of products, etc.
Concurrent positions ofcorporate officers:
Yes(Notes) 1. Figures in parentheses in the “Percentage of voting stock holding/held” column represents the percentage of indirect
holding/indirect held.
*2. These companies are classified as “Specified subsidiaries.”*3. Net sales (excluding intercompany sales within the MMC group) of Mitsubishi Motors North America, Inc.
exceeded 10% of consolidated net sales. Key profit and loss information for the company is shown below.
Mitsubishi Motors North America, Inc. (Consolidated)(1) Net sales
417,601 million yen(2) Ordinary profit (loss)
19,236(3) Profit (loss)
20,563(4) Net assets
115,856(5) Total assets
205,806*4. These companies are obliged to file annual securities reports.
5. “Concurrent positions of corporate officers” shown in the “Relationship” column includes concurrent positions ofcorporate officers of the respective companies held by corporate officers or employees dispatched from MMC or otherconsolidated subsidiaries, as well as secondments and work transfers.
Mitsubishi
Corporation*4

Chiyoda-ku,
Tokyo

204,447

Wholesale trade- 10 -

20.0

5. Employees(1) Number of employees at consolidated companies(As of March 31, 2024)
Name of business segment

Number of employees

Automobile
Financial service

28,788(8,888)

194

(79)

Total
28,982(8,967)(Notes) 1. The number of employees is the number of employees currently on duty (excluding corporate officers).
2. The annual average number of temporary employees (part-time employees, fixed-term employees, dispatchedemployees, etc.) shown in the bracket ( ) is not included in total.

(2) Number of employees at reporting company(As of March 31, 2024)
Number of employees
Name ofbusinesssegment

Administrative/engineering
employees

Shop floor
employees

Total

Average age(Year-old)

Average
Average annual
number of years
salaryemployed(Yen)(Years)

9,816
4,028
13,844
42.1
15.3
7,863,000(1,712)(1,925)(3,637)
The number of employees is the number of employees currently on duty (excluding corporate officers).
“Shop floor employees” refer to employees directly involved in production activities, employees that assist
production activities and employees that provide instruction and supervision related to production activities.
“Administrative/engineering employees” refer to employees other than shop floor employees.
The annual average number of temporary employees (part-time employees, fixed-term employees, dispatchedemployees, etc.) shown in the bracket ( ) is not included in total.
Average annual salary (including tax) includes bonuses and surplus wages.

Automobile(Notes) 1.
2.
3.
4.

(3) Workers Unions
Workers’ unions associated with MMC and its domestic consolidated subsidiaries are affiliated with Japan
Automobile Workers’ Unions through the Federation of All Mitsubishi Motors and Mitsubishi Fuso Workers
Unions.
(4) Percentage of female workers to managers, the ratio for male employees taking childcare leave, gender wage
gap(i) Reporting company
Fiscal year under review
Percentage of female
workers to managers (%)(Note) 1(Note) 2

Ratio for male
employees taking
childcare leave (%)(Note) 3

Workers’ gender wage gap (%) (Note) 1
All workers(of which full-time
employees) (Note) 4(of which part-time
employees and fixedterm employees)(Note) 5

6.3
70.6
78.5
78.9
68.6
(Notes) 1. It is calculated based on the provisions of the Act on the Promotion of Women’s Active Engagement inProfessional Life (Act No. 64 of 2015).
2. “Percentage of female workers to managers,” includes workers seconded from other companies to the reporting
company, but does not include those seconded from the reporting company to other companies.
3. It calculated the acquisition rate of childcare leave and leave taken for childcare as prescribed in Article 71-4,
Paragraph 2 of the Ordinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other
Measures for the Welfare of Workers Caring for Children or Other Family Members (Ordinance of the Ministryof Health, Labour and Welfare No. 25 of 1991) in accordance with the provisions of the Act on Childcare Leave,
Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members(Act No. 76 of 1991). Workers include those seconded from the reporting company to other companies, but do
not include those seconded from other companies to the reporting company.
4. Full-time employees include full-time workers and full-time non-regular workers without a fixed term.
5. Part-time employees and fixed-term employees include part-time workers and fixed-term contract workers but
not dispatched employees.

- 11 -

(ii) Consolidated subsidiaries
Fiscal year under review

Company name

Percentage offemaleworkers tomanagers (%)(Note) 1

Ratio for male employees
taking childcare leave (%)

Workers’ gender wage gap (%)(Note) 1
All workers(of which fulltime
employees)(of which parttime employees
and fixed-term
employees)

Higashi Nihon
Mitsubishi Motor Sales
Co., Ltd.

5.2

100.0

(Note) 3

80.9

80.1

70.2

Nishi Nihon Mitsubishi
Motor Sales Co., Ltd.

2.2

12.5

(Note) 2

78.8

76.0

99.7

Mitsubishi Automotive
Logistics Technology
Co., Ltd.

5.1–(Note) 4

78.4

75.9

88.1

Mitsubishi Automotive
Engineering Co., Ltd.

0.9

78.8

(Note) 2

66.7

64.2

120.0

Suiryo Plastics Co., Ltd.

3.4

100.0

(Note) 3

75.9

78.5

80.3

Mitsubishi Motors Finance Co.,
19.0–
(Note) 4
72.2
75.9
Ltd.
(Notes) 1. It is calculated based on the provisions of the Act on the Promotion of Women’s Active Engagement inProfessional Life (Act No. 64 of 2015).
2. It calculated the acquisition rate of childcare leave as prescribed in Article 71-4, Paragraph 1 of the Ordinancefor Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other Measures for the Welfare ofWorkers Caring for Children or Other Family Members (Ordinance of the Ministry of Health, Labour andWelfare No. 25 of 1991) in accordance with the provisions of the Act on Childcare Leave, Caregiver Leave, andOther Measures for the Welfare of Workers Caring for Children or Other Family Members (Act No. 76 of
1991).
3. It calculated the acquisition rate of childcare leave and leave taken for childcare as prescribed in Article 71-4,
Paragraph 2 of the Ordinance for Enforcement of the Act on Childcare Leave, Caregiver Leave, and Other
Measures for the Welfare of Workers Caring for Children or Other Family Members (Ordinance of the Ministryof Health, Labour and Welfare No. 25 of 1991) in accordance with the provisions of the Act on Childcare Leave,
Caregiver Leave, and Other Measures for the Welfare of Workers Caring for Children or Other Family Members(Act No. 76 of 1991).
4. No employees were eligible for childcare leave.

- 12 -

129.6

II. Overview of Business
1. Management policy, business environment and issues to be addressed
The MMC group’s recognition of management issues based on recent changes to the business environment andapproach to our corporate strategies are as below. Any future forecasts included in the following descriptions are
based on the best estimates or judgment of the MMC group as of March 31, 2024.
In the automotive industry, the concept of an automobile as a means of mobility for people and transportation forgoods is changing largely with electrification as a countermeasure against global warming and with thedevelopment of technologies such as AI and IoT. We believe that we are welcoming a period of immense changethat happens only once every hundred years.
In March 2023, the MMC group unveiled “Challenge 2025,” the mid-term business plan for FY2023 throughFY2025. On the basis of the resilient and agile business structure put in place through structural reforms enacted
thus far, “Challenge 2025” consists of expanding our business in a manner suitable for the uniqueness of eachregion and country. We will establish a stable revenue base through the continuation of company-wide revenue
improvement activities. Furthermore, to realize further growth and tackle challenges heading into the next
generation, we plan to steadily increase research and development expenses as well as capital expenditure. The
following are specific initiatives towards achieving key goals.
1. Sales of 1.1 million units, operating profit of 220 billion yen (operating profit margin of 7%)
2. Introduce 16 models (including nine EV models) in the next five years
3. Achieve further growth in the ASEAN and Oceania regions and enhance earning power in other regions using
ASEAN-targeted products
4. Using our alliances, respond to regions promoting advanced technologies starting with Europe and the UnitedStates
5. Reduce greenhouse gas emissions in an effort to achieve carbon neutrality
6. Promote digitalization and expand into new business fields
7. Further strengthen alliances (e.g. mutual complementation with OEM parts)
During the fiscal year under review, the initial year of the mid-term business plan, we primarily implemented thefollowing initiatives.
Firstly, on the product front, we continuously introduced strategic vehicles for the ASEAN market: the new 1-ton
pickup truck TRITON, the new compact SUV XFORCE, and HEV models of the crossover MPVs XPANDER and
XPANDER CROSS. Moving forward, we will intensify the sales of these models and expand their distribution toother regions. Additionally, we commenced sales of the Kei-car super height wagon DELICA MINI in Japan.
Moreover, we received OEM supply from the Renault group, our alliance partner, for the new ASX and the newColt, and launched their sales in the European market. The success of these new models is viewed as a crucial
step towards MMC’s sustainable growth.
Secondly, regarding the improvement in sales quality, in addition to the “revenue improvement activities” leading
to sales price improvement, favorable exchange rates have also contributed to an increase in revenue per vehicle.
In terms of regional strategy, while some parts of the ASEAN market are experiencing delayed recovery,
profitability has improved in Latin America and the Middle East/Africa, where ASEAN-targeted products can be
deployed. Additionally, in North America, success in sales that highlight the value has resulted in a positive shift
in the car model mix. On the other hand, due to rapid market changes in the Chinese automotive industry, we
have fundamentally reassessed the MMC group’s strategy in China and discontinued local production ofcompleted vehicles. Regarding assembly and production of completed vehicles in Russia, which was suspended
due to Russia’s military invasion of Ukraine, we have decided not to resume production.
Furthermore, as part of our investment towards achieving sustainable growth, we have decided to invest inAmpere, an EV & software company established by the Renault group, to strengthen electric vehicle development
and alliances for the accelerated phase of electrification.
Moving forward, under the MMC group’s vision of “Create a vibrant society by realizing the potential of mobility,”
we aim to realize a sustainable society and the MMC group’s sustainable growth. We will organize the materiality
in conducting business, aiming to achieve carbon neutrality, establish a workplace where human rights arerespected and diverse talent can thrive, and conduct transparent management for all stakeholders.

- 13 -

2. Approach to and initiatives for sustainability
The Group’s approach to and initiatives on sustainability are as follows.
Any future forecasts included in the following descriptions are based on the best estimates or judgment of theGroup as of March 31, 2024.
(1) Governance and risk management
Governancei)

We recognized the importance of the United Nations Sustainable Development Goals (SDGs) and identified
material issues as the important issue that we should wrestle from various problems in the fields of eachenvironment, society, and governance in FY2018. Since that time, MMC has been flexibly reviewing its
materiality as required, giving consideration to our significant impact on society and stakeholders in terms of
the economy, environment and human rights, etc. By carrying out the initiatives on materiality, we would liketo satisfy the needs and expectations of society and stakeholders.
MMC has established a Sustainability Committee, chaired by the Representative Executive Officer, President &CEO, to promote sustainability related initiatives throughout the MMC group. The Sustainability Committee
identifies material issues related to the environment, society and governance on which MMC shall work, anddeliberates the goals of efforts to deal with such issues. Then, MMC implements a plan-do-check-act (PDCA)
cycle by confirming the progress of corresponding. Structures are in place to deliberate particularly importantmatters, such as the policy for sustainability, and report them to the Board of Directors to be monitored.
Particularly regarding “Responding to Climate Change and Energy Issues,” we have established the Carbon
Neutral Council consisting of the heads of the departments in charge of management strategy, products,
production, logistics, etc. and the Executive Officer, Executive Vice President, who serves as Chairperson, under
the Sustainability Committee, which considers concrete measures in each domain and proposes medium- andlong-term response policies and goals based on the assessment of climate change risks and opportunities. We
have a structure in which proposed policies and goals are deliberated by the Sustainability Committee.
Example of climate change-related matters deliberated on and reported by the Boardof Directors• Support for the TCFD(Note) Recommendations• Information disclosure in line with the TCFD Recommendations• 2050 governmental declarations of carbon neutrality and the revision of theEnvironmental Vision 2050
• Revision of the Environmental Vision 2030
(Note)

TCFD is an abbreviation for “Task Force on Climate-related Financial Disclosures”- 14 -

Structure of Promoting Carbon Neutrality

Roles
Monitoring Progress toward the Environmental
Sustainability Committee
Targets 2030
Formulate medium- and long-term policies andCarbon Neutral Council
targets toward the realization of carbon neutrality
by 2050
Subcommittee to Promote the Draft action plans for reducing CO2 in areas of
Reduction of CO2 frombusiness activity, promotion of specific measures,
Business Activities
etc.
TCFD Consideration Teamii)

Identify and assess climate-related risks andopportunities, consider scenario analysis, etc.

Meeting frequency
Three times a year
Four times a year

Twice a year
Meets as necessary(Six times for
FY2023)

Risk management

Upon expressing our support for the TCFD Recommendations in July 2021, we formed a company-wide, crossfunctional team under the Sustainability Committee to conduct a scenario analysis based on the TCFD
Recommendations. We identified and evaluated risks and opportunities that could affect MITSUBISHI
MOTORS’ business activities by considering scenarios of external factors such as IEA(Note) and each country’s
policy, regulations, etc., based on the timing of occurrence and degree of impact. To respond to high-impact
climate change risks and opportunities that have a particularly high degree of impact, we incorporate them into
goals and the action plan for the Sustainability Committee to check the progress.
- 15 -

(Note)International Energy Agency(2) Important strategies, indices and goalsi)Strategies

We have defined “responding to climate change and energy issues” as one of our materiality issues, we consider
climate change risks and opportunities to be an important perspective in the formulation of our business strategy.
MMC identified and evaluated short-, medium- and long-term risks and opportunities. As the items with asignificant impact, we identified “Strengthening of fuel efficiency/CO2 and ZEV(Note 1) regulations, etc.,”“Introduction and expansion of carbon pricing,” “Frequent occurrences and intensification of climatic disasters”
and “Expansion of the demand for electric vehicles (EVs)(Note 2).” For these items, we analyze the impact on ourbusiness and consider the countermeasures by referring to multiple scenarios announced by the IEA, the
IPCC(Note 3), etc. We recognize that climate-related issues may affect its business, strategies, and financial plans,
and reviews its strategies and plans from time to time in light of climate-related risks and opportunities.
By reflecting the countermeasures for climate change risks and opportunities in the Environmental Plan
Package(Note 4), which defines the direction and goals of our environmental initiatives, as well as the businessstrategy, MMC promotes efforts to improve resilience as a company by achieving sustainable business growth
and reducing future risks.
In September 2022, we declared that we aim to become carbon neutral through our entire supply chain by 2050,
and also revised our “Environmental Vision 2050.” In addition, we revised targets for “Environmental Targets
2030” in February 2023 as a milestone for the realization of becoming carbon neutral by 2050.
We are promoting the development of electrified vehicles and the improvement of fuel efficiency of vehicles
with internal combustion engines while leveraging the technologies of our Alliance partners, and actively
bringing to market electrified vehicles optimally suited to the energy circumstances and level of infrastructuraldevelopment of each country and region, as well as the needs of customers, with a product focus on MMC’s
original plug-in hybrid electric vehicles (PHEVs) and Kei-car commercial EVs. As part of our business activities,
we are promoting energy minimization and the transition to renewable energy with the aim of reducing CO 2
emissions. At the overall supply chain level, we are cooperating with suppliers, related companies andorganizations, governments and municipalities to not only reduce CO2 emissions in suppliers’ production phaseof raw material and components and in the logistics domain for items including finished vehicles andcomponents, but also promote the wider use of renewable energy and the expansion of charging infrastructure,including the use of carbon-neutral fuels, and the promotion of V2X, among other initiatives.
In new medium-term business plan “Challenge 2025,” unveiled in March 2023, the Group highlights carbon
neutrality as one of the major challenges. We will work on the development of EVs and strengthening of alliances
for the second EV reinforcement phase (FY2026 to FY2028) and plan to introduce nine models by FY 2028. So
far, we have introduced three models, ASX (PHEV/HEV), Colt (HEV) and XPANDER / XPANDER CROSS(HEV).
(Notes) 1. ZEV is an abbreviation for “Zero Emission Vehicle.” These include electric and fuel cell vehicles that do not emit any
emissions
2. Battery electric vehicles, plug-in hybrid electric vehicles (PHEVs), and hybrid electric vehicles (HEVs)
3. IPCC: Intergovernmental Panel on Climate Change
4. For details about the Environmental Plan Package, see our website below.
https://www.mitsubishi-motors.com/en/sustainability/environment/initiatives/ii) Indices and Targets
Indices

To manage risk and opportunities, the MMC group has introduced “CO2 emissions from business activities” asa major indicator for Scope 1 and 2(Note), and “CO2 emissions from new vehicles” and “Ratio of electric vehicles
sold” for greenhouse gas emissions related to category 11 (Use of Sold Products) of Scope 3(Note), which consistsof about 70% of the emissions of the entire supply chain. From FY2022, based on the recognition that the
response to sustainability is one of the crucial issues of the MMC group, we added ESG-related items such as“CO2 emissions from business activities” as the index to determine the Medium-and Long-term Performancelinked Compensation for Executive Officers.
(Note) For Scope 1, 2 and 3, the MMC group adhered to the GHG Protocol.

- 16 -

Scope 1: A company’s direct emissions (such as from burning fuel)Scope 2: Indirect emissions, resulting from electricity, heat or steam provided by another company
Scope 3: Indirect emissions other than Scope 1 and Scope 2 (emissions from other companies and other sources related tothe company’s activities)

Targets

The MMC group aims to achieve carbon neutrality of the entire supply chain by 2050 and set a target by FY2030
as its milestone.
<Major FY2030 targets and progress>
Indicators
CO2 emissions from new vehicles(Tank to Wheel)
Ratio of electric vehicles sales
CO2 emissions from businessactivities(Scope 1 and 2 total emissions)

FY2030 targets-40%(compared with FY2010)50%(100% by FY2035)

Results (FY2022) (Note 1)-18%(compared with FY2010)-50% (Note 2)(compared with FY2018)-33%(compared with FY2018)11%<Amount of actual Scope 1 and 2 CO2 emissions>
FY2018FY2019(Unit: 1,000t-CO2)
FY2020

FY2021

FY2022 (Note 1)

Scope 1

119

110

80

92

95

Scope 2

469

416

285

319

271

Total

(Note 2) 588

526

365

411

366

(Notes) 1. For actual results of FY2023, please refer to the Sustainability Report to be issued in the summer of 2024.
2. The actual emission volume of FY2018, which was 588 thousand t-CO2, includes 43 thousand t-CO2 emissions fromsome equity-method associates. At the review of the target in February 2023, we have set the target of minus 50% withour base figure of 545 thousand t-CO2, as the latest method of selecting environmental management target companies
excluding the emissions from these equity-method associates.

(3) Strategy on human capital (including diversity of human resources), indices and goalsi)Strategy

The MMC has set the Three Principles, which are positioned as the MMC Group’s common basic philosophy,
as the guideline for corporate activities. Considering that human resources are the key to achieve the Group’s
sustainable growth and improvement of corporate value in an environment that is changing rapidly, we areproceeding with various initiatives based on the policy to promote 1) the development of the talents who canpractice the MMC WAY, which is the behavior guidelines to realize vision and mission, and 2) the achievementof a work environment where the each and every person can perform meaningful work demonstrating his/herfull abilities and high engagement and where people can work enthusiastically and in good health, both
physically and mentally.
We will work for the attainment of the medium-term business plan “Challenge 2025” by having “Build a better
place to work,” “Enhance learning opportunities/reskilling programs,” and “Secure/cultivate a diverse workforce”
as priorities. To promote and implement these priorities, we have established the Human Resources Development
Council, which consists of Executive Officer & President and executives. The council discusses and considers
issues, tactics and measures concerning the securement and development of human resources, which are directly
connected to corporate competitiveness, once a month as scheduled.

- 17 -

ii)

Index and Target“Build a better place to work”- Promotion of no-designated workspace arrangement
In FY2021, we have established remote work system for each employee’s achievement of work-life balance.
The system has been widely used among employees and is contributing to the improvement of their engagement.
While recruitment-related competition becomes fierce these days, we are currently considering the introductionof the no-designated workspace arrangement that allows employees to work anywhere and not to be bound towork at a designated place or commute to an office as a flexible work style to acquire highly specialized talents
and disabled people and maintain their employment.
- Flexible working system that takes into account parenting and elderly care
MMC is enhancing our work-life balance assistance programs to create the basis for our employees to work
comfortably accommodating their diverse work styles and life events. In FY2017, we introduced thetelecommuting and accompanying leave systems. In FY2018, we established the “Work-life Balance Support
Concierge” within the Company, from which employees can seek advice on the programs suitable for theirindividual childcare and nursing care needs. Following feedback from employees who had sought advice, we
relaxed the criteria for child nursing leave, short-term nursing care leave and the telecommuting system.
Utilizing the telecommuting system together, we are creating an environment that fosters more productive andhighly flexible working styles.
-Helping Employees to Balance Work, Childcare, and Nursing CareAs for the support of work-parenting balance, to further promote male employees’ utilization of parenting leave,
we have conducted training for executives, seminar for expectant fathers and mothers and e-leaning. As a result,the use rate of parenting leave by male employees recorded 70.6% (up 2.2% year on year) in FY2023. We willproceed with the initiative by targeting increasing the use rate of parenting leave by male employees to become
closer to that by female employees.
With regard to the support of work-elderly care balance, we provide nursing consultation service that allows
employees to contact a nursing specialist via email or phone as required. In addition, we have been distributing
online seminar, “Nursing On-demand Video Seminar,” through which we can learn the basic knowledge on how
to manage both work and nursing well from external lecturer(s). In 2023, we also started providing “Nursing
Short Video,” which employees can view when it is convenient for them to understand the important points ofnursing.
“Enhance learning opportunities/reskilling programs”- Expansion of overseas employee exchange and training system
We offer overseas business training programs by dispatching young employees mainly to ASEAN countries, ourfocus area, for one or two years. In FY2022, we have a newly added open application system to allow qualified
employees to apply. In addition, we have expanded this measure to overseas affiliates. In FY2023, the MMC- 18 -

started receiving trainees from affiliates and promoting human resources development, including overseas
affiliates’ employees.
- DX reskilling program
After having all officers discuss what we should aim for in the IT/digital domain in 15 years, we identified thedevelopment of digital-savvy human resources as a priority theme to achieve the Medium-term Management
Plan, considering that it is crucial that all employees acquire IT/Digital literacy to move toward the future bymaking the most of technology. In 2023, as the first step of the development of digital-savvy human resources,
we conducted IT/Digital literacy improvement training (total six hours) for all officers and all indirect employees
to nurture all employees’ mindset to drive reform. We will define the requirements for IT/digital-savvy humanresources and implement the necessary education to develop advanced digital-savvy human resources in stages.
- Link between expertise evaluation and salary raise/promotion system
In FY2022, we added “expertise” to behavior criteria and started assessing the proficiency level of specialized
knowledge and skills required by each organization and the actual behavior/performance level based on theexpertise, aiming to improve each employee’s achievement and performance. With this system, there is asequence of the recognition of expertise, motivation, practice, feedback, ability development and growth, which
is linked to salary raise/promotion in the form of the results of appraisal. In FY 2023, departmental criteria were
defined. To strengthen expertness based on the departmental criteria, we will work on the enhancement ofeducational measures implementing both OJT and Off-JT training programs as a company and a department.
“Secure/cultivate a diverse workforce”- Introduction of more flexible salary system
To promote the securement of diverse and broad-ranging human resources, the MMC has introduced the role
grade system as management-level employees’ grade/remuneration system. By clarifying the link between roleand remuneration and providing appropriate remuneration based on roles, we made it possible to properly treat
employees based on truly desired roles in any fiscal year and easily obtain the human resources required for the
MMC’s sustainable growth internally and externally. We will further utilize the application of role grade to beable to cope with changes in the environment in a flexible manner.
- Creation of workplace where diverse human resources can play an active role
To secure diverse talents, we are strengthening hiring mid-career candidates. The target number of new
employees in FY2023 was 675, and we hired 448 people. We implement measures to follow up mid-career
candidates, such as the reinforcement of the workplace induction activities (compulsive mentor and 1on1
systems), the creation of opportunities to understand production sites by visiting a plant and a development
facility, and the arrangement of groups training to support connecting with other colleagues who entered theCompany during the same period for them to get used to the MMC immediately and start demonstrating theircapabilities.
The MMC has been working on the promotion of the utilization of female employees as a priority issue. In
FY2023, female manager ratio was 6.3% (up 0.2% year on year). In accordance with the Act on the Promotionof Women’s Active Engagement in Professional life, we newly developed the Action Plan to Promote Women’s
Active Engagement in April 2024 to promote the activities to decrease the gap between female manager ratio
and female indirect employee ratio by March 2029.
As for the employment of disabled people, in addition to the promotion of hiring at our special subsidiarycompany, we are aiming to infuse inclusion at a larger number of workplaces by promoting recruitment andlong-term employment at the parent company, the MMC.
Moreover, we are considering reviewing employment and labor conditions including the age limit for senior
workers to play more active roles than ever. In production departments, we will drive the creation of work withless burden that is suitable to senior workers, renew facilities to crease the environment that employees can work
comfortably, and introduce and update IT tools at administrative departments.
“Reinforcement of occupational safety and health”
Considering the assurance of employees’ safety and health is the foundation of corporate activities, we areconstantly working on the measures based on the MMC Safety and Health Management Policy including ourbusiness partners’ site located within the MMC.
Each employee with healthy mind and body is the driving force for the improvement of corporate value andsustainable growth. Positioning the maintenance and enhancement of employees’ health as one of essential
management issues, the MMC is handling health management with the concerted effort of domestic sites posing- 19 -

“The Health Declaration” described below. In March 2024, continuing from the previous fiscal year, the MMC
received the Excellent Health Company Certificate under the large enterprise category from the Ministry of
Economy, Trade and Industry (METI) and the Nippon Kenko Kaigi.
<The Health Declaration>
The foundation for our employees having fulfilling work and personal lives is the mental and physical health of
all employees and their families as well as the creation of an environment that allows them to work
enthusiastically. MMC will actively promote each employee’s health.
“Employee engagement”
Since FY2013, the MMC has been implementing the employee engagement survey. The survey is intended tovisualize the status of the whole company/organization and employees to activate people and organizations bydealing with the issues identified in the results and improving employee engagement.
In 2023, the employee engagement score was up 1 point year on year. After analyzing research results, we
provided officers, organization heads and departments in charge with the feedback for their responsible
domain, and urged them to take action to improve engagement. Notably, to improve organization/humanresources management, we held a workshop at their workplace and a seminar inviting external experts, “Drive
your team,” for organization heads to improve the quality of management. In addition, we use the survey
results as reference data to discuss the future course of human resources development at the Human Resources
Development Council, which the senior management attends, to promote the Company’s action to improve
employee engagement continuously.

- 20 -

3. Business-related risks
Important risks that may significantly affect the business results, financial position, cash flow position, etc. of the
MMC group include those listed below. The following matters, however, are not an exhaustive list of all risks,
and the MMC group is also potentially exposed to risk other than those listed below. Any of the risks listed below
might impact the operating results, financial position, cash flow status, etc. of the MMC group.
Moreover, please note that the following matters concerning the future may differ from actual results in the futuresince the matters concerning the future were assessed by the MMC group as of the filing date of the securities
report and contains uncertainties.
(1) Risks related to the market and business (operational risks)(i) Impacts of parts and raw material procurement
The MMC group globally sources raw materials and parts, etc., from the perspective of enhancing productquality and cost competitiveness. Depending on the parts and materials, we make it a rule to place optimalorders, such as through centralized ordering or multiple ordering. In addition, we also use rare metals suchas palladium and rhodium, which are not only produced in low quantities but are also produced only in
specific countries and regions.
Therefore, if supplies from those suppliers are stopped, or if it is not possible to procure in a timely way andat competitive prices due to such unexpected reasons as rapid changes in the supply and demand of raw
materials, parts, etc., changes in the political situation of the country of procurement, tightening ofimport/export regulations related to economic security, and occurrence of natural disasters, or other reasons,production of our products will be delayed or stopped, and costs may increase.
In every country, the enactment of laws and regulations to demand companies to take human rights initiatives
has progressed. Accordingly, the need for companies to respond to the human rights risk of supply chain is
rapidly increasing. When the MMC Group cannot take proper and timely action on these laws andregulations, the repercussions extend beyond just legal violations as our brand image will be damaged due
to a decrease in social credibility, which would affect our business activities, including production,
development, purchase and sales, as well as the MMC Group’s operating results, financial position and/or
cash flow status.
Since these risks would also significantly impact the MMC group’s medium- and long-term business plans,
we are reinforcing our risk initiatives related to the supply chain to minimize such an impact on our businessand performance. Nevertheless, events associated with such risks may still occur.
(ii) Impact of product quality and safety
In order to improve product quality, the MMC group works to promptly clarify the causes of failures andexecute countermeasures through collaboration with related departments based on market information, andappropriately examine potential risks.
If recalls, improvement measures, etc. due to product defects or failures become large scale, or if there is alarge-scale liability claim from customers due to product defects or failures in spite of the Group’s efforts toimprove the quality of products and services and ensure safety, the operating results, financial position
and/or cash flow status of the MMC group may be affected due to the incurring of substantial costs,
evaluation of the Company’s products, damage to its brand image, decline in sales, etc.
(iii) Impact of laws and regulations, etc.
The MMC group is subject to various laws and government regulations concerning the environment, suchas gas emissions, fuel efficiency, noise, chemical substances, recycling, water resources, etc. related toautomotive industry, in the countries where the Group operates.
Moreover, it is also subject to a wide range of laws and regulations in Japan and overseas, such as consumer
protection regulations, certificates and permission related to business and investment, labor regulations,
regulations on foreign exchange, trade control including that for security purposes, various tax laws(including tariffs), antimonopoly laws and anti-bribery laws.
In order to deal with these laws and regulations, the MMC group has put in place a system to ensure that theGroup complies with laws and regulations; each department in charge has implemented measures to prevent
potential non-compliance with laws and regulations, etc., and the MMC group has also enhanced a structure
to respond promptly to any compliance-related matters detected by the Group. However, the possibility that- 21 -

a law violation may be committed in the future is not zero. It might be pointed out to the Group that there isa law violation, or the content, effect, promptness or other part of its response is insufficient. In such a case,we might become a subject of administrative investigation by a regulatory authority or receive punishment,
or a party involved in a suit party in a lawsuit. If such an event occurs, it could have an impact on the MMC
group’s compliance reputation, and consequently, on the operating results, financial position and/or cash
flow status of the MMC group.
(iv) Impacts of lawsuits and other legal procedures
As the MMC group conducts its business activities, we may become a party involved in various lawsuits
and other legal procedures with users, business partners and third parties. In such a legal procedure or an
ongoing legal procedure, if a judgment that is unfavorable to us is made, the operating results, financial
position and/or cash flow status of the MMC group may be affected.
Moreover, although the MMC group holds product liability insurance that would fully cover compensation
for damages and legal costs arising from claims for damages and lawsuits in relation to product liability
where the courts ruled in favor of plaintiffs, the ruling requiring the Group to pay the amount ofcompensation larger than anticipated may impact the operating results, financial position and/or cash flow
status of the MMC group. As for the status of individual product liability lawsuit, please refer to “V.
Financial Information, 1. Consolidated financial statements, Notes, Consolidated balance sheet, 6.
Contingent liabilities.”(v) Impact of infringement of intellectual property rights
The MMC group endeavors to protect its own technologies, know-how and other intellectual property as
well as to prevent the infringement of third-party intellectual property rights. However, in the event that athird party unlawfully uses the MMC group’s intellectual property results in a fall in legal costs, or in theevent that an unexpected infringement of a third-party intellectual property right by the MMC group requires
a halt in manufacturing or sales or the unforeseen payment of license fees or compensation, or causes damage
to the reputation of the MMC group’s products and a consequent drop in demand, the operating results,financial position and/or cash flow status of the MMC group may be impacted.
(vi) Impact of IT and information security
The information that the MMC group uses in its operations, products, services, etc. and the information
technology such as networks and systems where such information is stored come in a wide variety, including
those managed by subcontractors. Given the advancement of connected services and IoT technologies, theMMC group implements safety management measures for hardware and software, including measures toprotect personal information, as well as information security training for Group employees. Nevertheless,due to hacking and cyberattacks on the infrastructure, products, services, etc., of the MMC group or ourbusiness partners, inadequate management or human error within the Group or at contractors, or occurrenceof natural disasters, there may be leakage of confidential, personal, and other information including
information concerning our technologies, suspension of our important operating system and services,
adverse effect on the electronic control function of our products, improper paperwork or
destruction/falsification of important data. If they result in an impairment of the Group’s brand image andsocial credibility causing sales to decline, legal claims, lawsuits or liability for damages, obligation to pay
penalties or fines, or operational problems such as production suspension. If such a possibility realizes, it
could have a negative impact on the operating results, financial position and/or cash flow status of the MMC
group.
(2) Risks related to business strategy and the maintenance of competitiveness (strategic risks)(i) Impact on the sales strategy and response to competitor trends
In the auto industry, there is fierce competition on a global scale. Furthermore, the concept of an automobile
as a means of mobility for people and transportation for goods is changing due to electrification and thedevelopment of certain technologies. We believe that we are welcoming a period of immense change that
happens only once every hundred years. By promoting the medium-term business plan “Challenge 2025,”
which poses “regional strategy to establish a stable revenue base,” “promotion of efforts to achieve carbon
neutrality” and “digital transformation and initiatives towards new business” as its main challenges, andproviding customers with products and services bearing the distinct hallmarks of Mitsubishi Motors, theMMC group aims to maintain and expand the sales volume and market share and improve profitability.
Nevertheless, if such strategy does not progress as planned and we are unable to implement measures that
surpass our competitors, it may impact the operating results, financial position and/or cash flow status of the
MMC group.
- 22 -

(ii) Impact of product and technology development
To provide customers with a rich mobility lifestyle that awakens a sense of adventure through reliability
backed by “Environment x Safety, Security and Comfort” in the midst of rapid changes in technology andpostures required of automobile manufacturers, such as various demands in certain areas and the efforts toachieve carbon neutrality, the MMC group works on development every day considering that it is important
to arrange timely introduction of new products and technologies, which are useful, practical and easy-touse, satisfying customers’ values and needs and manifesting “MITSUBISHI MOTORS’ uniqueness.”
However, when we cannot sufficiently capture the values and needs of customers even with our researchand development based on detailed study and/or when we cannot provide customers with new technologies
and products in a timely manner because of internal and external factors, our sales market share, sales andprofitability could decline.
(iii) Impacts of alliances with other companies
Our Group has entered into business alliances and partnerships with other companies, including joint
ventures, in the areas of research and development, production, and sales, with the expectation of greater
efficiency in management resources and synergistic effects. However, there is a possibility that alliances orjoint ventures may change or cannot be maintained or may not produce the expected results due to changes
in the business strategy of the other party, disagreements in alliance policy between the parties, changes in
the investment ratio, or other factors. If the results do not meet expectations, the financial condition of thepartner deteriorates, or there is a change in the investment relationship, a significant change in the alliance,or the dissolution of the alliance, our Group’s operating results, financial position and/or cash flow status
may be affected.
(iv) Impact of the personnel and labor strategy
The MMC group believes it is extremely important to secure highly-specialized personnel and to provide
them with opportunities, and it promotes the creation of a corporate culture that supports diverse workingstyles through appropriate assignment of personnel based on having the correct key members and theestablishment of a role-based compensation system in addition to the creation of schemes that encourage
individual growth.
However, if recruitment and retention do not proceed as planned due to hiring difficulties and increased
liquidity in the labor market, our Group’s competitiveness may decline over the long term.
Moreover, the MMC group recognizes that efforts to respect human rights are an indispensable element infulfilling our social responsibilities in order to expand our business globally and grow sustainably, and works
on prohibiting discrimination and eliminating unfair labor practices set out in the “Human Rights Policy.”
However, if our Group or related parties take actions that are problematic in terms of human rights, ourbusiness foundation may be affected by a loss of trust and confidence from customers or damage to ourbrand image due to a decline in social credibility, etc.
(v) Influence of climate change
In anticipation of tighter fuel efficiency/CO2 emission regulations and ZEV regulations, as well as theincreased introduction of carbon pricing, etc., our Group is promoting electrification, energy conservation
activities at all our bases and the introduction of renewable energy, based on our “Environmental Plan
Package” which sets forth the policies and targets of our Group’s environmental initiatives. However, in theevent that cost of sales rises to address the further strengthening of fuel economy/CO2 emissions regulations
and other regulations due to climate change countermeasures proceeding more than expected, or if costs ofproduction and procurement rise due to expanding the introduction of carbon pricing, etc., the operating
results, financial position and/or cash flow status of the MMC group may be affected.
We are also striving to promote adaptation measures, such as formulating Business Continuity Plans, in
preparation for the possibility that global CO2 emissions will not be reduced, temperatures will continue torise, and natural disasters such as typhoons and torrential rains will become more frequent and catastrophic
in a wider area than at present. However, if parts procurement, product manufacturing, sales, distribution,etc., are delayed or halted due to more frequent or severe natural disasters such as floods than expected in
the countries or regions where our Group or our transaction partners’ production bases are located, ourGroup’s operating results, financial position and/or cash flow status may be affected.

- 23 -

(3) Risks related to finance and the economy (financial risks)(i) Impact of foreign exchange rate fluctuations
As overseas sales account for around 80 percent of the MMC group’s overall sales, the Group holds
receivables denominated in foreign currencies, including US dollars, Euros and Australian dollars. Further,as the MMC group manufactures products to export globally at a Thai subsidiary, it also holds liabilities
denominated in foreign currencies, primarily the baht.
As the values of foreign currency denominated assets (accounts receivable - trade, etc.) and foreign currency
denominated liabilities (accounts payable - trade, etc.) change when foreign exchange markets for Japanese
yen and foreign currencies fluctuate, the MMC group’s yen-based profit or loss may be affected.
At present, the MMC group has worked on measures to reduce the impact of exchange rates, such as theexport of the vehicles manufactured in Indonesia, and sales expansion in Thailand of the vehicles
manufactured in the country, to contain the impact of foreign exchange rates over the medium- to long-term.
However, if there are significant fluctuations in foreign currencies, the operating results, financial position
and/or cash flow status of the MMC group may be affected.
(ii) Impacts of changes in the market environment
The MMC group operates business around the world, and engages in production and sales activities invarious countries and regions.
These business activities may be affected by an economic downturn, financial crisis, etc. in an individual
country and region, and if transportation costs rise, it is difficult to secure ships for transportation, or shiparrangements are delayed, our production and sales activities may be adversely affected, affecting theoperating results, financial position and/or cash flow status of the MMC group.
(iii) Credit risk of business partners
As the MMC group conducts its business activities, we are exposed to credit risks in its dealings with dealers
and with customers and other trading partners and in its automobile financing business.
Regarding credit risk related to business partners, such as distributors, we strive to control risk by
maintaining appropriate credit protection, while continuously evaluating country risk and the financial statusof business partners. Moreover, we carry out strict credit screening and collection management for risks
arising from the sales finance business to control the occurrence of bankruptcies and uncollectible
receivables. However, if a loss stemming from such risk exceeds the MMC group’s expectations due to a
deterioration of the external environment, etc., the operating results, financial position and/or cash flow
status of the MMC group may be affected.
(iv) Impact of the liquidity of funds
In addition to borrowing from financial institutions, the MMC group issues commercial paper, etc. forfinancing. In order to prepare for increased demand for funds due to deterioration of the businessenvironment, MMC secures sufficient liquidity by setting up commitment lines at overseas subsidiaries in
addition to commitment lines of credit worth about 150.0 billion yen, and strives to maintain good
relationships with our main bank and other relevant financial institutions. However, if unable to finance therequired funding at appropriate terms in the financial markets due to an economic or financial crisis, etc. or
due to a lowering of the MMC group’s credit ratings, this may seriously impact the operating results,financial position and/or cash flow status of the MMC group.
(4) Risks related to business continuity (hazard risks)(i) Impacts of war, terrorism, political instability, and deteriorating security
The MMC group has facilities for development, manufacturing, sales, etc. in Japan and other parts of theworld, and the occurrence of terrorism, war, civil war, political instability, security concerns, etc. in theseregions may cause serious disruptions, such as interruption of operations of the MMC group or its business
partners.
In anticipation of such a situation, the cross-functional economic security team prepares and executes
measures to mitigate any possible obstacles, and if such an event should occur, a countermeasures meetingis established with the participation of the relevant divisions to address the situation from a company-wide,cross-functional perspective.

- 24 -

However, if terrorism, war, civil war, political instability, security instability, or the like occurs on a larger
scale than is expected, and when parts procurement, production and sales of products, logistics, etc. aredelayed or stopped or costs increase, the operating results, financial position and/or cash flow status of the
MMC group may be affected.
(ii) Impact of natural disasters, accidents and outbreak of infectious diseases
The MMC group has facilities for development, manufacturing, sales, and other bases in Japan and otherparts of the world. Natural disasters such as large-scale earthquakes, typhoons, torrential rains, and floods,
fires and other accidents, and outbreaks of infectious diseases in such regions may cause serious disruptions,
including interruption of the MMC group’s operations or those of its suppliers.
The BCM* Committee has formulated a business continuity plan, while also verifying the effectivenessthrough regular training and preparing for any emerging threats based on a scenario that would have a serious
impact on the MMC group’s operations.
However, if facilities, such as manufacturing bases, are damaged due to a natural disaster, accident or spreadof infectious disease on a scale larger than anticipated, or if the procurement of components, manufacture,sale and distribution of products, etc. are delayed or suspended, this may affect the operating results,financial position and/or cash flow status of the MMC group.
*:

BCM is an abbreviation for “Business Continuity Management”- 25 -

4. Management analysis of financial position, operating results and cash flows
An overview of the financial position, operating results and cash flows (“operating results, etc.”) of the
MMC group (MMC, its consolidated subsidiaries and its entities accounted for using equity method)
during the fiscal year under review follows.
Any forward-looking statements expressed below are based on the judgment of the MMC group as ofMarch 31, 2024.
(1) Financial position and operating results(i) Operating results
In the second half of the fiscal year under review, an inventory shortage stemming from a shortage ofsemiconductors, etc. was generally eliminated, and the competitive environment on the sales scene
began to normalize. On the other hand, in the ASEAN region to which MMC gives priority, the businessenvironment surrounding the MMC group was severe in general mainly due to a considerable decreasein overall demand for automobiles in some countries.
In this harsh business environment, the MMC group clarified the priority order of costs, and focused on
improvement of sales quality or “net revenue strategy”. However, the results slightly fell below therevised forecasts.
As a result, full-year global sales volume was 815,000 units, down 2% from the previous fiscal year,
and full-year net sales were 2,789.6 billion yen, up 13% from the previous fiscal year. Sluggish overall
demand in some areas of ASEAN, fiercer competition due to alleviation of constraints on supply ofvehicles, and a deterioration in material expenses and transportation expenses were overcome by
improvements in selling prices in line with the improvement of sales quality and favorable exchange
rates, resulting in operating profit of 191.0 billion yen for the full fiscal year (up 0.5 billion yen year onyear). Ordinary profit was 209.0 billion yen (up 27.0 billion yen year on year), and net income (profit
attributable to owners of parent) was 154.7 billion yen (down 14.0 billion yen year on year).
The fiscal year under review, which was the first fiscal year of the mid-term business plan “Challenge
2025,” became the starting point that significantly changed the course from the past, through review of
the regional portfolio including China and Russia, launch of new models/review of the product mix
including introduction of models from alliance partners, launch of HEVs for the first time in the MMC
group, and other means. As it was a period of transition for model change and the ASEAN market was
stagnant, MMC struggled to cope with the situation. On the other hand, the net revenue strategy steadily
progressed, and a certain amount of revenue was generated mainly through the hit of DELICA MINI
and TRITON, which embody the appeal of Mitsubishi Motorsness, and the hit of HEVs of which thedevelopment was advanced in the past few years. As such, the fiscal year under review was also a year
in which MMC got confidence about next growth.
As for FY2024, the external environment remains unstable principally due to heightened geopoliticalrisks and concerns about the future of the economy of each country. Furthermore, in the automotive
industry, while demand for BEVs has once leveled off, there have been movements that are completely
different from those just 6 months ago, such as the increasing presence of HEVs and PHEVs. Althoughchanges in the world are extremely rapid and sharp, MMC believes that the direction of major changes
remains unchanged. In any case, MMC will further realize measures for growth in FY2024 toappropriately capture a turning point for changes and turn it into an opportunity.
The operating status by business segment is as shown below.
i)Automobile businessNet sales for the automotive business in the fiscal year under review were 2,771.6 billion yen(up 329.6 billion yen year on year) with operating profit of 187.9 billion yen (up 1.8 billion
yen year on year).

- 26 -

ii)

Financial service businessNet sales for the fiscal year under review were 38.0 billion yen (up 2.9 billion yen year onyear), and operating profit was 4.4 billion yen (down 0.5 billion yen year on year).

(ii) Financial position
Total assets as of March 31, 2024 amounted to 2,454.5 billion yen (up 253.0 billion yen from the endof the previous fiscal year). Cash and deposits amounted to 674.2 billion yen (up 78.2 billion yen fromthe end of the previous fiscal year). Total liabilities amounted to 1,410.0 billion yen (up 38.9 billion yen
from the end of the previous fiscal year). Of total liabilities, the interest bearing debt balance was 492.4
billion yen (up 64.1 billion yen from the end of the previous fiscal year). Net assets as of March 31,
2024 amounted to 1,044.5 billion yen (up 214.1 billion yen from the end of the previous fiscal year).
(2) Cash flows(i) Basic approach to cash flows
The MMC group adheres to a basic policy to maintain the stable distribution of profits to shareholders
by achieving sound and sustainable growth and enhancing its corporate value, while maintaining
financial discipline; the Group has adopted free cash flow as one of its business performance indicators.
Based on the policy above, in order to fund the needs of its business activities including the development,
manufacturing and sale of vehicles (e.g., material costs, personnel expenses, various other overheads
and loan funds for its financial service business), and the needs of its capital investments including thosefor next-generation technologies and compliance with environmental regulations, and those for
improving productivity, the MMC group will in principle cover such outlays with the cash flows it
newly generates each year. When necessary, the Group also uses internal funds accumulated over the
past fiscal years or external financing such as borrowings from financial institutions.
(Note) The free cash flow is calculated as the sum of cash flows from operating activities and cash
flows from investing activities.
(ii) Cash flow status
Cash flows for the fiscal year under review consisted of a net inflow of 140.8 billion yen from operating
activities (down 32.8 billion yen year on year), a net outflow of 138.9 billion yen from investing
activities (up 85.8 billion yen year on year), and a net inflow of 37.7 billion yen from financing activities(up 99.6 billion yen year on year). In addition, the balance of cash and cash equivalents at the end of
the fiscal year under review increased by 78.3 billion yen from the end of the previous fiscal year to674.2 billion yen, partially due to an increase of 38.7 billion yen in effect of exchange rate change on
cash and cash equivalents.
Free cash flow for the fiscal year under review ended up with a net inflow of 1.9 billion yen (down118.6 billion yen year on year).
Cash flows from operating activities
Net cash provided by operating activities was 140.8 billion yen, a decrease of 32.8 billion yen comparedto cash provided by operating activities of 173.6 billion yen for the previous fiscal year. This decrease
in inflow is due mainly to a decrease in trade payables.
Cash flows from investing activities
Net cash used in investing activities was 138.9 billion yen, an increase of 85.8 billion yen compared to
cash used in investing activities of 53.1 billion yen in the previous fiscal year. This was primarily due
to a decrease in inflow from proceeds from sale of property, plant and equipment and an increase inacquisition of property, plant and equipment.
Cash flows from financing activities
Net cash provided by financing activities was 37.7 billion yen, an increase of 99.6 billion yen comparedto cash used in financing activities of 61.9 billion yen in the previous fiscal year. This was primarily
due to an increase in long-term borrowings.

- 27 -

(iii) Liquidity of funds and financing
The consolidated balance of cash and deposits and the consolidated balance of interest bearing debt at
the end of the fiscal year under review were 674.2 billion yen and 492.4 billion yen, respectively. In
addition, MMC has entered into a committed credit line agreement worth approximately 150.0 billion
yen with domestic financial institutions. The balance of cash and deposits plus the committed line ofcredit has provided the Company with a liquidity of approximately 830.0 billion yen.

In preparation for an increase in demand for funds due to a deterioration of the businessenvironment, we have also set up, in addition to the above liquidity, commitment lines at overseas
subsidiaries, and strive to secure the funds necessary for maintaining, expanding, and operating the
MMC group’s business.
The MMC group obtained credit ratings from the rating agencies: the Rating and Investment
Information, Inc., and S&P. The Group’s ratings as of the filing date of this securities report are BBB+
from the Rating and Investment Information, Inc., and BB+ from S&P.

- 28 -

(3) Production, orders and salesi)

Production

Production for the fiscal year under review is as follows.
Fiscal year under review
Quantity (Units)

Year on year
(%)

Japan

499,497

109.2

Overseas

510,856

90.9

Asia

497,628

91.7

Other

13,22867.1

Total
1,010,353
99.1
Figures for production quantity in the table above are totals of built-up vehicles produced by MMC and its
consolidated subsidiaries (knockdown production is also included in the quantity in Japan) which include the OEM
production for other companies and jointly-developed vehicle production conducted by MMC.

(Note)

ii)

Orders received

MMC generally operates on a make-to-stock basis, except for special cases such as when dealing withlarge-lot demand.
iii) Sales
Sales results during the fiscal year under review are as follows.
Fiscal year under review
Quantity (Units)

Year on year (%)

Amount(Millions of yen)AmountQuantityJapan

265,077

609,100

107.7

Overseas

110.2

763,968

2,180,489

100.2

114.4

North America

182,796

711,099

122.4

132.2

Europe79,795219,377

151.0

142.3

Asia

257,988537,039

78.8

90.0

Oceania

88,938318,988

103.2

113.2

Other Regions

154,451

393,984

105.1

117.9

Total
1,029,045
2,789,589
102.0
113.5
(Notes) 1. Sales results represent the sales quantity of built-up vehicles and knockdown kits produced by MMC and its
consolidated subsidiaries, classified by the geographic location of the external customers.
2. The sales results by major customer and their ratios against total sales have been omitted as there is no customer
from which sales accounts for 10% or more of the total sales results for the fiscal year under review.

- 29 -

(4) Significant accounting policies and estimates
The MMC group’s consolidated financial statements are prepared in accordance with accounting
principles generally accepted in Japan (Japan GAAP). The preparation of consolidated financial
statements requires that estimates and assumptions be made that affect the recorded amounts of assets
and liabilities, disclosed amounts of contingent assets and liabilities at the end of the fiscal year underreview, as well as recorded amounts of revenue and expenses during the reporting period. Although theestimates were made based on the past results and methods deemed reasonable, because of uncertainty
unique to estimates, actual results could differ from these estimates.
The significant accounting policies applied by the MMC group in the preparation of the consolidated
financial statements are explained in “Material basis of the preparation of consolidated financial
statements” of “V. Financial Information, 1. Consolidated financial statements.” The MMC groupconsiders the following significant accounting policies could materially affect the estimates made in the
consolidated financial statements: In addition, liabilities related to market quality measures andcontingent liabilities (provision for loss on litigation) are explained in “Significant accounting estimates”
of “V. Financial Information, 1. Consolidated financial statements.”i)
Allowance for doubtful accounts
To prepare for losses from bad debts for trade receivables, loans, etc., an estimate of the amount ofspecific uncollectible accounts is provided as an allowance for doubtful accounts based on the historicaldefault rate for ordinary receivables, and taking into account individual collectability for specificreceivables such as doubtful receivables. In cases where a customer’s ability to pay decreases becauseof financial deterioration due to factors such as changes in economic conditions, recording of theadditional allowance for doubtful accounts may be required.
ii)
Provision for product warranties
The MMC group calculates the provision for product warranties after taking into account, according to
the warranty agreements, future warranty forecasts based on past results in order to provide for the
products’ after-service costs. The estimates of after sales service cost may need to be revised when
actual product defect rate or repair cost differ from the estimates.
iii)
Provision for contingent loss
Sensible amounts to cover expected losses calculated based on individual risks for each contingency
and other factors are recorded to prepare for highly likely contingent loss.
iv)
Retirement benefit expenses and retirement benefit obligation
The retirement benefit expenses and retirement benefit obligations are calculated based on certain
actuarial assumptions, including discount rates, expected rate of bonuses, employee turnover rate, as
well as mortality rate and long-term rate of return on pension plan assets calculated based on the latest
statistical figures. When the actual results differ from assumptions, or when the assumptions areamended, the effect thereof will be accumulated and recognized regularly going forward; thereby
affecting the amount of expenses to be recognized and amount of liabilities to be recorded in the future
period.
v)
Evaluation of deferred tax assets
The MMC group deducts a valuation allowance from its deferred tax assets in order to reduce theamount to an amount considered to be highly recoverable, then records the net amount. The valuation
allowance is calculated giving consideration to future taxable income, tax planning, and other factors.
Where all or part of the deferred tax assets are judged to be unrecoverable in the future, an adjustment
to deferred tax assets is recognized as an expense in the period during with the judgment was made.
Furthermore, where the amount of deferred tax assets recoverable in the future is judged to exceed therecognized amount of deferred tax assets, an adjustment to deferred tax assets is recognized as profit in
the period during which the judgment was made.
vi)
Evaluation of investment securities
The MMC group retains shares of publicly traded companies with high price volatility and shares of
not publicly traded companies that have no market prices. The MMC group periodically reviews theevaluation of investment securities and conducts impairment accounting if the evaluation falls below
the acquisition cost or the carrying amount after impairment by a certain rate or more. Worsening market
conditions or unstable performance at invested companies in the future may require the implementation- 30 -

of impairment in the event that losses are not reflected in the current carrying amount or the carrying
amount becomes irrecoverable.
vii)
Impairment of non-current assets
When applying impairment accounting to non-current assets, the MMC group groups production assets
mainly by business company, sales related assets mainly by business unit and lease assets and idle assets
as individual asset groups, and estimates future cash flows with each group. If future cash flows fall
below the carrying amount, the carrying amount will be reduced to the recoverable amount. If therecoverable amount decreases in the future, impairment loss may occur and have an impact on profit orloss.

- 31 -

5. Critical contracts for operation
Counterparty

Company which
entered into agreement
Mitsubishi Motors
Corporation (MMC)

NameCountry

China Aerospace
Automotive Industry
Group Co.

China

Shenyang Jianhua Motors
Engine Co., Ltd.

China

Mitsubishi CorporationJapan

MCIC Holdings Sdn.
Bhd.

Malaysia

Mitsubishi Motors
Corporation (MMC)

Nissan Motor Co., Ltd.

Japan

Suzuki Motor
Corporation

Japan

Mitsubishi Motors
Corporation (MMC)

Peugeot Citroen
Automobiles SA

Mitsubishi Motors
Corporation (MMC)

PT Krama Yudha
Mitsubishi Corporation

Japan

Mitsubishi Motors
Corporation (MMC)

Nissan Motor Co., Ltd.

Japan

Mitsubishi Motors
Corporation (MMC)

Daimler AG

Germany

Renault

FranceAgreement

Date on which
agreement
entered into

Agreement on the establishment of
Shenyang Aerospace Mitsubishi
Motors Engine Manufacturing Co.,
Ltd. regarding automobile engine
business in China

May 15, 1997

Agreement on the rights, obligations,etc. between the shareholders
concerning Jatco Ltd.

March 15, 2007

FranceJoint venture agreement to produce
vehicles in Russia

May 19, 2008

Indonesia

Joint venture agreement to produce
vehicles in Indonesia

March 24, 2015

Strategic Alliance Agreement
regarding Capital and Business
Alliance with Nissan Motor Co., Ltd.

May 25, 2016

Strategic Alliance agreement
regarding automobile business

October 3, 2018

Renault-Nissan B.V.

The Netherlands

Nissan Motor Co., Ltd.

Japan

(Note) Significant business contracts that ended during the fiscal year under review, are as follows.
Mitsubishi Motors
Corporation (MMC)

Guangzhou Automobile
Group Company, Ltd.

China

Mitsubishi CorporationJapan- 32 -

Joint venture agreement on theestablishment of GAC Mitsubishi
Motors Co., Ltd. regarding sales andproduction of vehicles, etc. in China

September 5,2012(Ended on
February 27,
2024)

6. Research and development activities
The MMC group has worked on research and development activities in order to realize its mid-termbusiness plan “Challenge 2025” announced in March 2023.
During the fiscal year under review, R&D expenses (the automobile business) for the entire Groupamounted to 114,583 million yen.
The Group’s R&D structure, the status of development of next-generation technologies and the major
new products released from April 2023 through March 2024 are as described below.
(1) R&D structure
In Japan, the MMC group conducts early technology development, design, and testing of designs andtechnologies primarily at the “Research & Development Center” and the “EV Research & Development
Center.” Also, in collaboration with MMC’s overseas R&D bases in North America, Europe, China, andThailand, these facilities develop technologies and products adapted to the market characteristics of eachregion. MMC also aims to develop technologies and products by leveraging the alliance with Renault andNissan.
(2) Development of next-generation technologies
MMC is promoting technology development to deliver attractive products to embody “Mitsubishi Motorsness,” which is defined as “providing customers with a fulfilling mobility life that awakens their‘Adventurous Spirit’ on the basis of reliability backed by technology that achieves ‘Eco-friendly x Safety
Technology, Peace of Mind and Comfort’” in the medium-term business plan.
i)

Development of environmental technologies

The Company will expand its electric vehicle lineup by utilizing its proprietary Plug-in Hybrid EV
System (PHEV) as a core technology, and PHEV components and batteries for battery electric vehicles(BEVs) and hybrid electric vehicles (HEVs) in order to achieve a 50% electric vehicle sales ratio by2030, as stated in the “Challenge 2025” announced in March 2023. As for the core model,
OUTLANDER PHEV, we are expanding the markets by adding Europe. In the ASEAN, our priority
strategic region, we launched XPANDER (HEV) and XPANDER CROSS (HEV), which uses HEV
system, which was newly developed utilizing PHEV technology in Thailand in February 2024. The
system is also added to the XFORCE series, accelerating electrification. As for BEVs, we launched
MINICAB-EV, of which product functionality was enhanced by increasing the capacity of installedbatteries for the Japan market, and we began the production of MINICAB-EV in Indonesia in December
2023. In addition to the EV Kei-cars in the markets, we will introduce BEVs in developed countries
utilizing alliances to enhance the lineup. Moreover, to swiftly and efficiently develop technologies
responding to the rapid advancement of electrification (battery, motor, etc.), MMC will promote themutual utilization of motor components and powertrains through the alliance.
ii) Development of safety and security technologies


Development of safety technologies
We are upholding the safety philosophy towards a car society with zero traffic accidents, and formulated
an automobile safety framework as our approach to safety technology. We are making efforts under thefollowing three axes: 1. Technology to help prevent traffic accidents (active safety), 2. Technology to
mitigate damage from traffic accidents (passive safety) and 3. Avoidance of dangers, both in hardware
and software, assumed as industrial products (fundamental product safety). By reflecting various safety
technologies into our products, we are trying to have our customers drive safely and comfortably withpeace of mind. These technologies include primarily the advanced preventative safety technology“Mitsubishi e-Assist*1” and the collision safety technology “RISE.*2” In addition, we are promoting
the development of safe technology that can be more effective in the ASEAN traffic environment.

Provide a sense of security through 4WD technologies and off-road performance
MMC has continued to work on advancement of the four-wheel integrated vehicle dynamics control
system “S-AWC*3,” a technology of its special expertise to provide innovative driving performance and- 33 -

reliability on almost any road surface. In particular, MMC has continued their development of the
combination of electric technology and S-AWC as the technology to improve our targeted properties,“Eco-friendly x Safety Technology, Peace of Mind and Comfort.” To provide safe, comfortable andexciting driving experience for customers in the world, MMC plans to implement and incorporate thistechnology further.


Durability and reliability with robust body and chassis
MMC aims to ensure endurance reliability that enables us “to go anywhere forever” by conducting
annual global research on ever-changing market conditions and road surfaces and how customers use a
car and updating severe testing conditions of our test course. MMC is also strengthening the measures
for aging quality degradation to prevent damage to “Peace of Mind and Comfort” performance of cars
used over many years. Our continuous effort in developing technology for endurance reliability made it
possible for us to participate in the Asia Cross Country Rally 2023 with our all-new TRITON, finish inthird place overall and win the Team Award. This award is given to the team that all entries completed
the rally and is based on the total time of the top two entries.
iii) Development of technology to improve comfort
MMC aims to deepen its understanding of the need of each customer who uses our products andservices, helping people to move around and providing a sense of excitement to all drivers andpassengers with a driver-friendly environment and comfortable cabin space. For the achievementof this aim, MCC will improve the performance such as interior comfort, convenience, connected
services and user-friendly features and modify and enhance capabilities by reflecting the changes
in social environment and lifestyle, introducing IT technology that is changing every day, andleading the advancement of information presenting and driving systems and driver assistancefunctions.
(Notes)*1: Mitsubishi e-Assist: Preventative safety technologies that support safe and comfortable driving through radio
wave radars and camera, etc.
*2: RISE: Reinforced Impact Safety Evolution*3: S-AWC: Super All Wheel Control(3) Main new products released from April 2023 to March 2024
1) New DELICA MINI super height-wagon Kei-car
2) New TRITON One-ton Pickup Truck3) New MINICAB-EV
4) New XFORCE compact SUV
5) HEV models of the XPANDER and XPANDER CROSS CROSSOVER MPVs
The features of each model are as described below.
1) We have released the new DELICA MINI super height-wagon Kei-car. The new DELICA MINI isa new addition to the DELICA series, which was developed based on the concept of being a reliable
and active super height-wagon kei-car. The DELICA MINI features an SUV-like styling withDELICA’s signature powerful design and large-diameter tires, convenient and spacious interiorroom, road performance that supports driving and safety equipment for both outdoor recreationand everyday use. It widens the scope of your activities, and offers an enjoyable time with family
and friends through leisure use, etc.

- 34 -

Main product features are as follow:i)

Exterior and interior based on the design theme of Daily AdventureA)

SUV-like tough exterior The combination of the three-dimensional Dynamic Shield, expressive of power andsecurity, with headlights that have distinctive semicircular LED position lights built in gives
an elegant yet friendly look.
 The front bumper and liftgate garnish adopt an embossed DELICA logo. In addition to theglossy black wheel arches, the bottoms of the front and rear bumpers employ a skid-plate
form conveying the DELICA’s powerfulness and quality feel of an SUV.
 The aluminum wheels feature a form conveying toughness and stylish dark-silver paint,
giving a firm impression at the lower part of the vehicle.
 The body color was freshly developed along with the concept of the new DELICA MINI,
using Ash Green Metallic suitable in every setting, from outdoor recreation sites to the
middle of the city. The lineup consists of 12 colors, six two-tone and six monotone.
B)

User-friendly and comfortable interior, including for outdoor activities

 The horizontally-themed instrument panel with a black base color is accented by an ivory
color that gives an active, bright impression, emphasizing the feeling of width andfunctionality with the interior.
 The seats feature breathable, water-repellant fabric, with use in outdoor activities and by
families with small children in mind. In addition, the application of raised embossment tothe sitting surface and center of the seatbacks makes for functional seats that are
comfortable and resist moisture.
ii) Spacious, convenient interior room
A)

Long rear-seat slider tracks and a variety of seat arrangements

 The rear seats ensure a sliding range of 320 mm front and back, with foot space guaranteeingthat passengers have plenty of room to sit, even with the front seats pushed back theirfurthest. Seats on each side also slide and recline, making various seat arrangements
possible according to the number of passengers and the amount of luggage.
B)

Rear sliding doors for easy ingress and egress The rear sliding doors offer an opening width of 650 mm, as well as boarding efficiency
thanks to the level floor. In addition, the adoption of hands-free auto sliding doors allows
for opening and closing even with both hands full of luggage, simply by covering the kicksensor making getting on and out of the vehicle easy.
C)

Stain-resistant cargo room

 Thanks to the use of a luggage board and rear seatbacks made of material that easily wipes
clean*4, wet items and muddy outdoor supplies can be loaded without worry.
iii) Road performance and safety equipment that support both outdoor activities and everyday
life
A)

Large-diameter tires and specially tuned suspension

 Employment of large-diameter, 165/60R15-size tires and exclusive shock absorber tuning
creates a firm grip on the road surface while making it harder for vibrations to be felt in thecar, improving stability and comfort when driving on unpaved surfaces such as gravel roads(4WD models only).
B)

Grip Control and Hill Descent Control that enhance sense of security

 The DELICA MINI comes standard with Grip Control to support the driver move off onslippery road surfaces, for the experience of secure driving in both outdoor activities andeveryday life. If the drive wheel on one side spin out on a snowy or muddy road, the slipping- 35 -

wheel is controlled by a brake. Departure is supported by ensuring the driving force of thegripping wheel.
 Hill Descent Control is a standard feature, keeping the vehicle at a low speed electronicallyto allow for secure driving when going down steep hills or slippery roads.
C)

Excellent driver assistance function, MI-PILOT, and advanced safety feature, Mitsubishi
e-Assist The vehicle comes equipped with the MI-PILOT same-lane driver assistance technology
for highways*4. The Adaptive Cruise Control (ACC) assists maintaining distance between
cars even with the driver’s foot off the gas pedal, and Lane Keep Assist (LKA) controls
steering, aiding operation and taking burden off the driver by supporting keeping thevehicle near the center of the lane.
 The vehicle features advanced safety feature, Mitsubishi e-Assist, making it a Safety
Support Car S Wide. The installation of eight types of driver assistance function, including
Forward Collision Mitigation system (FCM) and Emergency Assist for Pedal
Misapplication (EAPM) supports safe everyday driving.
*4: Standard feature for the T Premium and G Premium.

2) We have released the new TRITON One-ton Pickup Truck. The new TRITON (Japanese model) isa double-cab body type with two rows of seats offering both the comfort of an SUV and therobustness and utility of a pickup truck. The main components, including a ladder frame and asuspension, were newly developed exclusively by MMC. It employs a newly developed 2.4L clean
diesel turbo engine that uses 2-stage turbo system, which achieves high environmental performanceand power that is easy to handle in the range of practical use. Active Yaw Control (AYC*5), whichis brake control system, and Active LSD (brake control type) combined with SS4-II system realize
the road performance that a driver wants despite the large size of the body. In addition, it has sevendrive modes to select for each 4WD mode, which attain excellent road handling under various roadconditions. It also adopts safety features such as Forward Collision Mitigation system (FCM) as
well as MITSUBISHI CONNECT, which supports safe, confident and comfortable driving, making
it a secure, reliable and pleasant pickup truck not only in terms of its hardware, but also in termsof its software. TRITON is offered in two grades, basic GLS and superior GSR. GSR’s standard
features include front under garnish, fender arch mole, bed liner and styling bar.
*5: Active Yaw Control

Main product features are as follow:i)Large body and driver friendly high power clean diesel engine are mounted on an exclusively
developed ladder frame that provides maximum durability and reliability A newly developed ladder frame has improved durability while weight increase has beenminimized by increasing the ratio of high-tensile steel used. As well as offering significantly
better road performance and ride comfort, the all-new TRITON also boasts increased
robustness by improving durability during loading and energy dispersion in the event of acollision.
 Just like a ladder frame, the weight of body is reduced by using super high-tensile steel. It
employs RISE*6, a body of which safety is reinforced against collision by achieving highenergy absorption at collision and suppressing cabin deformation.
 The cargo bed can accommodate JIS standard pallets*7 to be loaded even when a bed liner(cargo bed cover) is attached. In addition, the specifications such as 820mm*8 of the cargo
bed height and the upper surface of bumper corner that is reinforced with a frame to be used
as a foot space makes the vehicle practical. It also has a 2x4 lumber attachment that allows
the cargo space to be freely divided with 2x4 lumber to easily organize loaded items.
 The newly developed 4N16 type clean diesel engine employees 2-stage turbo system thatenables high power at all rpm by utilizing two turbines depending on rpm and load. It
enables highly-responsive driving with abundant torque in the range of practical use by amaximum output of 150 kW and a maximum torque of 470 Nm which is produced by- 36 -

approximately 1,500rpm flat. It also adopts urea SCR system that purifies emissions. With
the system, urea solution, AdBlue®*9, is used to stabilize and purifies nitrogen oxide (NOx).
The combine transmission is 6-speed sport mode A/T.
*6: Reinforced Impact Safety Evolution*7: 1100mm×1100mm×144mm*8: In case of GLS. In case of GSR, it is 825mm.
*9: AdBlue® is a registered trademark of Verband der Automobilindustrie (VDA).

ii) A newly developed suspension that provides excellent ride comfort and steering stability,
SS4-II system employed by PAJERO and seven drive modes that achieve high roadperformance It has a double wishbone structure for the front suspension. The upper suspension mounting
arm has been moved higher to secure the stroke, providing improved road-holding and ride
comfort. The rear suspension provides greater ride comfort while retaining its strength anduses a lighter leaf spring system together with thicker shock absorbers.
 MMC’s original SS4-II system is used for its 4WD system. The 4WD system offers four
options of 2H (rear-wheel drive), 4H (full-time four-wheel drive), 4HLc (locked center
differential) and 4LLc (locked center differential with lower gears). A dial-type selector
allows easy shift of 4WD mode during driving*10. As for the center differential, theallocation ratio of driving power is 40% for the front and 60% for the rear. It has torqueresponsive LSD that achieves both excellent traction and cornering performance.
 Each 4WD mode has seven drive modes. Along with Normal mode that is available in all
4WD modes, 2H offers Eco mode for prioritization of economy, 4H offers Gravel and Snowmodes, 4HLc offers Mud and Sand modes for traction performance, while 4LLc provides
Rock mode, allowing drivers to select the optimum drive mode for any road condition.
 It newly adopts Active Yaw Control (AYC), which improves cornering performance byapplying light braking to the inside front wheel when cornering. Combining with Active
LSD (brake control type), which applies the brake to a spinning wheel and distributes thedriving torque to wheels gripping the road surface, it achieves the road performance that adriver wants despite its large body. In addition, to reduce a driver’s burden, it uses systems
such as Hill Descent Control (HDC), which maintains a set speed on downhill slopes toenable driving with confidence, and Hill Start Assist (HSA), which prevents roll-back inhill starts.
*10: 100km/h or less, The shift between 4HLc and 4LLc is possible only while the vehicle is stopped.

iii) A front face with a strong sense of presence and reliability, a wide and robust styling, and aclassy interior offering excellent functionality and operability
 “Beast Mode” is a design concept that aims powerful and mighty design, which combines
agility with its robust design to create an imposing look while expressing the toughness andpowerfulness expected of a pickup truck. The horizontally-themed body sides are composedof large, solid surfaces that emphasize the robust doors, while contrasting with the sharply
overhanging fender panels to tighten them and make them appear wider, emphasizing
stability and toughness. The front face design concept of Dynamic Shield that expresses
powerful performance and the peace of mind protecting both the people and the car is
optimized for a pickup truck through a powerful form based on a robust, three-dimensional
front grille and fenders, and a protector that emphasizes this form.
 Functional design has been incorporated in all aspects to increase utility, including a cabinshape that improve aerodynamics, more durable door handles that are now bigger and easierto grip, and wider side steps with improved water drainage. The daytime running lightsfeaturing three L-shaped LED lights resemble a sharp gaze of a hawk, and in combination
with the three-dimensional 3-light headlights below them, the design gives the all-new
TRITON an overwhelming presence. As for the rear, while ensuring the cargo bed is of an
ample size, the solid surfaces continue along the side of the body up to the rear end. Tshaped tail lights on both sides emphasize width while also robustly displaying the sturdy
rear design.
- 37 -

 The instrument panel is designed with the Horizontal Axis concept, which uses
horizontally-themed and strong shapes to allow drivers to easily see changes in the postureof the vehicle when driving. With a nod to professional use, soft pads have been
incorporated in the main areas that protect passengers to ensure utility. In terms of design,
the interior uses many geometric shapes and metallic elements to create a high-contrast,
modern space while keeping utility feature. Particular attention has been paid to visibility
for the monitor, meters, and switches that make use of contrast of metallic and black, andthe dials and switches all have the optimum level of sensitivity to allow them to be operated
while wearing gloves. The steering wheel, grips, and door handles have all been designed
based on an approach called Mitsubishi Touch, with a focus on grip comfort and sturdiness.
 The front seats provide firm lower back support while the shoulder areas provide ease of
movement with an open shape, which helps to reduce driver fatigue. The hip point is highand an upright posture has been adopted to improve visibility from inside the vehicle. In
addition, ingress and egress have been made easier by designing the front pillar to be morevertical to widen the door openings and widening the side steps while making them a shapethat reduces the risk of slipping.
 Newly rolled out body colors are the vivid and metallic Yamabuki Orange Metallic and theBlade Silver Metallic that offers increased brilliance. The lineup also includes the highquality basic colors – White Diamond, Solid Red, Graphite Gray Metallic, and Jet BlackMica.
 With GSR, the front grille is the same color as the body, while the door mirrors, Dynamic
Shield garnish, plated components including the door handles, bumper, and other parts areblack, and the underside of the front, sides, and rear is dark titanium. A styling bar on theblack roof rails, fender arch mole, and cargo bed brings a sharper look. The use of black as
the base color for the metallic embellishments in the interior brings sleekness, while orange
accents bring a sense of class and sharpness.
iv) In addition to advanced safety features such as Forward Collision Mitigation (FCM) and highlevels of safety and comfort through connected car technology, a wide range of accessories
are available.
 The e-Assist driver assistance system features nine functions, including Adaptive Cruise
Control (ACC), which tracks the acceleration or deceleration of the vehicle in front andcruises while maintaining a preset distance between vehicles.
[1] Forward Collision Mitigation system (FCM)[2] Adaptive Cruise Control (ACC)[3] Emergency Assist for Pedal Misapplication (EAPM)[4] Lane Departure Warning (LDW) & Lane Departure Prevention (LDP)[5] Blind Spot Warning (BSW) with Lane Change Assist (LCA)[6] Rear Cross Traffic Alert (RCTA)[7] Automatic High Beam (AHB)[8] Traffic Sign Recognition system (TSR)[9] Driver Attention Alert (DAA) The advanced Mitsubishi Connect connected car service provides convenient functions
such as remote climate control and door lock/unlock, as well as SOS emergency assistanceand a drive monitoring function that informs the driver of the vehicle’s driving status. Thesefeatures reduce the burden on the driver and provide safety and security to all passengers.
 A wide range of accessories are available to enhance the features of the new TRITON. The
robust and refined design of the sport bar, broader and stronger fender arch moldings, andside door garnishes create a solid image. In addition to the bed liner, essential for protecting
the cargo bed, there are dress-up accessories such as fuel-lid garnish and support items,
including tonneau cover and tailgate assist kit.
- 38 -

3) We have released the new MINICAB-EV. The new MINICAB-EV is based on the MINICABMiEV and has undergone significant improvements. By leveraging the expertise gained from thedevelopment and maintenance of the MINICAB-MiEV, the new MINICAB-EV offers an improved
cruising range as well as enhanced safety and convenience features to answer the needs ofcommercial customers. In response to the accelerating efforts for decarbonization aimed atachieving carbon neutrality by 2050, and the growing demand for kei-car class electric commercial
vehicles from the logistics industry and government agencies, Mitsubishi Motors will contributeto the reduction of CO2 emissions in the last mile of commercial use with the new MINICAB-EV.
i)

Main product features
 The MINICAB-EV is a kei-car class electric commercial vehicle with a monobox design
and is equipped with a new generation of electric components including the motor and drive
battery. The cruising range has been extended to 180 km (in WLTC mode) per charge, which
is an increase of approximately 35 percent compared to the previous model. A normal
charging at AC200V (15A) takes approximately 7.5 hours to fully charge the battery, so if
the battery is charged after work, it will be fully charged and ready to use when work begins
the next day. In addition, up to 80 percent of the battery can be charged in approximately
42 minutes*12 with quick charging*11.
 The new electric motor produces a maximum torque of 195 Nm instantly, so even when thevehicle is heavily loaded with cargo, it retains the smooth and powerful driving performance
unique to an electric vehicle, delivering a crisp, stress-free driving. Moreover, the new
motor and inverter have been integrated into a single unit for enhanced quietness, allowing
users to drive early in the morning or late at night with no fear of disturbing others. The
price has been kept at the same level as the previous model, while improving the cruising
range and enhancing the safety features.
*11: Available as a factory option*12: When the maximum output current of the quick charger is 60 A or higherii) Major improvement
A)

A new generation of Mitsubishi Motors’ unique EV system

 Compared to the previous model, the capacity of the drive battery has been increased by 25
percent. The motor and inverter have been integrated into a single unit to improve motor
efficiency, resulting in a cruising range of 180 km*13 per charge, which is a 35 percent
increase over the previous model.
*13: WLTC mode one-charge cruising range.

B)

Safety features

 “Mitsubishi e-Assist” active safety technologies such as the Forward Collision Mitigation
system (FCM)*14, Lane Departure Warning (LDW) *15, Automatic High Beam (AHB) *16,
and Ultrasonic misacceleration Mitigation System (UMS) *17 when driving forward havebeen adopted to improve safety performance. With the enhanced safety features, the new
MINICAB-EV qualifies for the Safety Support Car S Wide promoted by the Japanese
government and supports safe daily driving.
 Hill Start Assist (HSA)*18, which prevents the vehicle from rolling backwards when startingon a steep hill, has been added for safe and worry-free starting.
*14: Forward Collision Mitigation System*15: Lane Departure Warning*16: Automatic High Beam
*17: Ultrasonic misacceleration Mitigation System*18: Hill Start Assist

C)

Convenience features

 A power outlet*19 (AC100V, maximum 1500W) is provided at the rear of the floor console
to allow electricity to be drawn from the vehicle at any time. This allows for the use ofelectronics and appliances with high power consumption even during disasters or otheremergencies.
- 39 -

 At the instrument panel, Type C and Type A USB charging outlet*20 are available as factory
options, and a smartphone tray has been added for user convenience.
*19: Available as a factory option for the two-seater model*20: 3A output for Type C, 2.4A output for Type A

D)

Road performance The damping performance of the front and rear shock absorbers has been improved toenhance passenger comfort and decrease cabin sway, thereby reducing the stress placed on
the cargo.
 Actual power consumption is improved by increasing the regenerative power when in the
B position, which makes active use of the regenerative brake.
4) We have released the all-new XFORCE compact SUV. The all-new XFORCE is a five-passenger
compact SUV that was developed with a focus on the way compact SUVs are used in the ASEAN
region. Based on the concept “Best-suited buddy for an exciting life,” the all-new model uplifts theowner’s everyday life with its stylish yet robust, authentic SUV styling as well as comfort andpracticality including a spacious cabin and versatile storage spaces well-balanced in a
maneuverable, compact body size, and road handling that allows safe, secure ride in a variety of
weather or road conditions.
Main product features are as follow:i)Interior and exterior design based on the concept of Silky & SolidA)

An exterior with a stylish yet powerful, authentic SUV design Based on the design concept of Silky & Solid, the stylish yet powerful, authentic SUV
design combines elegance and robustness, thereby realizing styling that creates acommanding presence in scenes from ASEAN cities to the great outdoors. The upper partof the body expresses an airy silkiness with a floating roof and a sleek surface that begins
from the three-diamond emblem up front and flows along the side to the rear. The lower
part of the body adopts the solid and powerful proportions of an SUV – the muscular fender
flares express the agility of an athlete, while a top-class ground clearance of 222 mm*21 plus
18-inch wheels and large-diameter tires enhance road handling on rough roads.
 At the front, the Dynamic Shield front face has been evolved in line with the design concept.
The design consisting of left and right bumpers that protect the front grille which
symbolizes the performance of the powertrain, is three-dimensionally integrated to create asporty front face with a sense of depth. The LED daytime running lights combine an Lshape with slitted accents to emit light in an iconic T-shape, making the SUV instantly
recognizable as a Mitsubishi model even from a distance, while also emphasizing the wide
stance.
 On the body sides, the rich, muscular surfaces combine with front and rear sculpted fender
flares and character lines to express the strength and dynamism of the SUV. By adopting
the same T-shaped design for the LED tail lights as the front, the rear attains a wide andstable look.
*21: 18-inch tire models. Figure does not include under cover.

B)

A sophisticated interior with a cutting-edge feel

 The instrument panel has been designed based on the Horizontal Axis concept. While
increasing forward visibility, it allows drivers to easily see changes in the position of thevehicle when driving on rough surfaces. The dynamic form of the instrument panel that runs
all the way to door trim creates an open, spacious area.
 For the first time in a Mitsubishi model, a mélange fabric is used for the padding of the
instrument panel, providing a sense of enclosure by its continuous coverage up to the door
trim. The highly practical fabric exudes modernity and sophistication while being resistant
to stains, thereby creating a comfortable space in which passengers can relax as if they are- 40 -

in their own living room. A large monolithic display panel integrates a 12.3-inch
Smartphone-link Display Audio and a digital driver display to express a cutting-edge feel.
ii) Comfort for everyone on board
A)

A spacious interior room among the best in class Despite its compact body size, the XFORCE offers a roomy interior space that enables all
passengers to relax while on board. For the front seats, a top-class seating space including
a spacious shoulder area has been secured to enhance comfort. Also, the seats provide bothsupport and comfort, thereby preventing lateral body movement in situations such as lanechanges and on rough roads, while enabling passengers to relax comfortably even in trafficjams.
 For the rear seats, close attention was paid to creating a space that allows a comfortable rideeven with three passengers. By ensuring a seating space that is among the best in class, therear seats boast ample legroom to offer comfort even with three passengers. Moreover, witheight-levels of reclining adjustment, the seats accommodate a wide range of needs, spanning
angles that allow passengers to relax, to angles that maximize cargo carrying capacity.
B)

Dynamic Sound Yamaha Premium sound system for greater excitement

 For the first time, the XFORCE comes equipped with Dynamic Sound Yamaha Premium
developed in collaboration with Yamaha Corporation. The system is comprised of eight
speakers, with front tweeters on the A-pillars on both sides, woofers in the front doors, andcoaxial two-way speakers in the rear doors. In order to maximize speaker performance,measures have been taken to optimize sound quality in the car itself. With volume and soundquality adjusted according to vehicle speed, passengers can enjoy well-defined mids andhighs and dynamic bass even on rough roads. For a more enjoyable driving experience, thesound system also offers four sound types that can be selected according to musical taste
and mood – Lively (factory setting), Signature, Powerful and Relaxing.
iii) Practicality for making every day comfortableA)

12.3-inch Smartphone-link Display Audio and 8-inch digital driver display offering
intuitive operation

 The all-new XFORCE comes equipped with a 12.3-inch Smartphone-link Display Audiothat exudes a cutting-edge feel while providing a comfortable driving environment. With
multi-widget function, the screen is divided into three sections to display various
information on a single screen. The multimeter display pays homage to the triple meter thatwas used in the legendary PAJERO, and combines information including altitude, tilt angle,
and direction to increase the joy of driving. Other features include Mitsubishi Motors’ first
driving score function developed with Hiroshi Masuoka, a former two-time Dakar Rally
champion driver. Also offered for the first time in a Mitsubishi model, WebLinkTM*22 allows
users to connect their smartphone and project applications on the large display.
 The digital driver display clearly shows a wide variety of content on a large screen. Whenthe driver switches drive modes, a graphic indicating the selected mode is shown in thecenter of the display, making it easy to intuitively select the drive mode even while driving.
Depending on their preference, drivers can also select whether the screen displays
information in an enhanced mode with a cutting-edge feel or in a classic mode that uses
analog-like meters.
*22: WebLinkTM is trademark of Abalta Technologies, Inc.

B)

Versatile storage spaces and multi-arrange cargo space In consideration of user-friendliness for passengers, the XFORCE offers ample andconvenient storage spaces in many locations around the vehicle. It has drink holders able toaccommodate a total of 21 600 mL plastic bottles in the door trims, floor console, and otherplaces, and a console box with drink cooler that uses the cool air from the air conditioning
to chill drinks has been also incorporated. Various storage spaces are secured for- 41 -

smartphones, with a wireless charger in the center console, USB Type-A and Type-C portson the front and rear rows, as well as spaces to place a smartphone in each seat.
 Despite its compact body size and spacious cabin space, the XFORCE offers ample cargoarea. By securing floor area that is among the best in its class and making the floor of the
cargo space height-adjustable, the XFORCE provides sufficient cargo room for large items
such as suitcases. The rear seats enable a 40:20:40 split to achieve a high loading capacitythat allows the loading of lengthy items while also providing enough space for four
passengers to sit comfortably.
iv) Road handling that offers safe, secure ride in various weather or road conditions, even on
rough or flooded roads
A)

A high-efficiency CVT for low fuel consumption and quietness

 A high-efficiency CVT is combined with a proven 1.5 L DOHC 16-valve MIVEC. Whenthe accelerator is deeply depressed, a powerful and sharp acceleration is delivered, with agear shifting feel added to allow the driver to feel the acceleration. When the accelerator islightly depressed, smooth shifting unique to CVT maximizes engine performance while
realizing low fuel consumption and quietness. For uphills, driving force is improved toenable powerful climbing even when the accelerator is not pressed down hard, while fordownhills, the engine brake is increased to reduce the need for frequent brake operation.
B)

Well-tuned suspension for ride comfort on ASEAN roads Having repeated testing in Japan on a course that mirrored the road conditions of theASEAN region as well as undertaking thorough tuning on actual roads in the ASEAN region,
the all-new XFORCE ensures a comfortable ride even on rough or undulating roads. In thefront, steering feel and straight-line stability are improved by optimizing the caster trail andquickening the steering gear ratio, while in the rear, steering stability is enhanced by
optimizing the suspension bushings and the shock absorber cylinder size.
C)

Class-leading ground clearance of 222 mm*23 for confidence even on rough roads With an 18-inch tire and wheel, the XFORCE achieves a class-leading ground clearance of
222 mm*23. The broad field of vision at the front of the vehicle offers excellent visibility
and makes driving easy, allowing the driver to handle a rough or a flooded road withconfidence. With an approach angle and departure angle among the best in class at 21.0
degrees and 30.5 degrees, respectively, the XFORCE gives drivers a sense of security evenwhen going over a pavement edge. With a minimum turning radius of 5.2 m that is one of
the smallest in its class, the XFORCE offers excellent handling even in the U-turns that arecommon in ASEAN cities.
*23:18-inch tire models. Figure does not include under cover.

D)

Four drive modes including a new Wet mode, first on a Mitsubishi model As a 2WD model, the XFORCE has utilized Mitsubishi Motors’ four-wheel control
technology to achieve the road handling of an SUV. The four drive modes of Normal, Wet,
Gravel and Mud allow the car to deal with a range of road conditions by integrating Active
Yaw Control (AYC) that adjusts the driving force on the front left and right wheels toimprove controllability, traction control that controls tire skidding, engine control, andpower steering control. Adopted by Mitsubishi Motors for the first time, the Wet mode
improves cornering and stability on wet roads during rain makes it less likely to lose controlof the steering wheel for worry-free driving even on roads flooded by sudden showers.
5) Hybrid electric vehicle (HEV) models have been newly added to the XPANDER and XPANDERCROSS CROSSOVER MPVs. The newly-added HEV models combine Mitsubishi Motors’
trademark electrification and all-wheel control technologies to raise the appeal of the XPANDER
series to another level. Newly developed based on the brand’s plug-in hybrid electric vehicles(PHEVs), the HEV system delivers an eco-friendly and exhilarating driving experience unique toelectrified vehicles. In addition, Active Yaw Control (AYC) and other all-wheel control
technologies complement the two-wheel drivetrain to enable safe, secure driving at will, and avariety of drive modes provide optimal driving on any road surface and in any weather condition.
- 42 -

Moreover, drivers can actively choose EV driving according to the situation, such as driving inquiet residential areas early in the morning.
Main product features are as follow:i)

An eco-friendly, exhilarating and powerful motor drive made possible by an HEV systemderived from PHEVs
 The newly developed HEV system features EV driving, hybrid driving and regenerative
braking. High fuel efficiency and a powerful, exhilarating motor drive are achieved byhaving the system automatically switch to the optimal driving mode according to the driving
conditions and remaining drive battery. When starting and driving at low speeds, the vehicle
is powered by the motor using electricity from the drive battery alone for EV driving. The
system switches to hybrid driving when driving uphill or accelerating to run using the motorwith electricity generated by the engine as well as power from the drive battery. Hybrid
driving also kicks in when driving at high speeds to run using the engine with assistancefrom the motor. Because the engine starts smoothly, drivers can enjoy the smooth,
comfortable ride of motor drive even during hybrid driving. During deceleration, kinetic
energy is recovered from regenerative braking and converted into electric power, which isthen stored in the drive battery. This HEV system derived from PHEVs is what made it
possible to deliver both the quiet, clean ride of an EV with no fuel consumption or CO 2
emissions, and the convenient, comfortable ride of an HEV for enjoying long drives without
concerns about remaining battery.
 The new HEV system delivers the smooth yet powerful acceleration with good responsethat is characteristic of an electrified vehicle. A generator and a motor with a maximum
output of 85 kW are combined with a 1.6 L gasoline engine, along with a dedicated drive
battery developed particularly for these models. Thanks to the powerful electric motor andbattery output, torque kicks in swiftly when starting and the acceleration has good responsewhen stepping on the pedal, thereby helping drivers smoothly change lanes on highways
and merge after U-turns on city streets.
 The newly developed 1.6 L DOHC 16-valve MIVEC*24 engine adopts a high expansion
ratio cycle (Atkinson cycle) to achieve a higher level of combustion efficiency while also
incorporating the first electric water pump ever used in a Mitsubishi Motors engine to
reduce mechanical loss. This improves the stand-alone fuel economy of the engine byaround 10% compared to the gasoline engine CVT model while also improving the fuelconsumption by approximately 34% in urban driving in the New European Driving Cycle(NEDC) test procedure, and approximately 15% in urban and extra-urban driving combined.
*24: MIVEC (Mitsubishi Innovative Valve timing Electronic Control system) is a term for Mitsubishi
Motors’ variable valve timing mechanism.

ii) Seven newly developed drive modes for EV driving at will and for safe, secure roadperformance in various weather and road conditions
 The seven newly developed drive modes comprise two modes for EV driving and fivemodes for optimal drive control according to road conditions.
 Two drive modes are provided for drivers to be able to choose EV driving at will, according
to the situation. EV Priority mode drives the motor on power from the battery without
activating the engine. Since this mode is highly quiet in addition to being eco-friendly, it
frees drivers from concerns about their surroundings when driving in environments such as
residential areas early in the morning. If remaining battery is low, switching to Charge mode
enables charging so that EV driving can be enjoyed again.
 The other five drive modes deliver optimal handling and driving force according to roadconditions. Based on a front, two-wheel drive system, various controls are integrated
together – the Active Yaw Control (AYC), which controls the braking force between the left
and right front wheels; traction control, which controls driving force when front wheelslippage is detected; acceleration control, which adjusts the output of the motors and engine
during acceleration; and steering control, which adjusts steering response according to the
speed range and road conditions. Normal mode is well-balanced for everyday driving, Wet- 43 -

mode reduces tire slippage and provides high stability even in heavy rains, Gravel mode
reduces skidding and delivers secure handling on unpaved roads, Tarmac mode offers
nimble driving and precise handling on winding roads, and Mud mode achieves powerfulroad handling even on muddy, rough roads. Together, these modes achieve safe, secure roadperformance in various types of weather and road conditions for daily driving.
 The interior features an 8-inch color liquid crystal display (LCD) meter, with a variety of
information displayed on the screen for even greater ease of use. Information particular toan HEV is shown, such as the power meter that indicates Eco, Power, and Charge statusesin sync with accelerator control, in addition to energy flow, EV driving efficiency andremaining battery. When switching drive modes, the selected mode is shown as a graphic
in the center of the display to make it more intuitively easy to select between drive modes
even while driving. According to preferences, the screen can either be set to enhanced modewith an advanced feel, or to classic mode which replicates an analog gauge configuration.
iii) An even more comfortable cabin space for driving with family and friends, plus a dedicatedexterior accent for a distinctive look The XPANDER and XPANDER CROSS HEV models deliver powerful, quiet motor drive
thanks to the HEV system that prioritizes EV driving. Also, sound absorbing andsoundproofing materials have been added to key locations on the vehicle to keep the interior
quiet not only during EV driving but also when the engine activates during acceleration orwhen driving at high speeds, allowing for conversations to continue stress-free in thepassenger cabin.
 To accommodate the HEV system, the drive battery has been positioned under the floor of
the front seats, thereby maintaining the XPANDER series’ top-class, three-row interior
space that is roomy enough for seven passengers, despite its body size that is easy tomaneuver in city driving. The flooring of the engine compartment and around the battery
has been changed, and the battery has been enclosed by front side members and front
crossmember for protection, resulting in the improvement of body rigidity. Along with a
special tuning of the suspension, these measures contribute to achieving outstanding
steering stability and excellent ride comfort.
 The exterior features “HEV” badges on the front grille and liftgate, plus “HYBRID EV”
badges on the front doors, while blue accent color has been added to the lower part of thefront side as well as the side garnishes, rear bumper, and wheels. White Diamond was newly
added as a body color to express the clean character of an electrified vehicle with its rigid
yet luminous and vivid color, joining Blade Silver Metallic, Graphite Gray Metallic and Jet
Black Mica in the lineup of color options. For the XPANDER CROSS HEV model, Green
Bronze Metallic is also available.

- 44 -

III. Information about Facilities
1. Outline of capital expenditure
The MMC group (MMC and its consolidated subsidiaries) invested a total of 93,628 million yen, mainly
in development and research equipment for new products and technologies and production equipment for
new products and sales equipment.
Company nameAutomobile

MMC

Details of capital expenditure

Amount ofinvestment(Millions of yen)

Production equipment of automobiles

26,958Development and research equipment of
automobiles

4,780

Segment

Equipment of automobile sales outlets

1,107

Other

15,918Sub total

Automobile sales companies (twocompanies)
Mitsubishi Motors Finance Co., Ltd.

Automobile

Equipment of automobile sales outlets

Financial service Investment of systems

48,7651,770
650Other domestic subsidiaries (threecompanies)

Automobile

Production equipment of parts, design andtesting equipment of automobiles and parts, andtransport and storage equipment of automobiles,
etc.

Mitsubishi Motors North America,
Inc. and two other companies

Automobile

Equipment of automobile sales outlets, etc.

Mitsubishi Motors Europe B.V.

Automobile

Equipment of parts sales outlets, etc.

Mitsubishi Motors Australia, Ltd.

Automobile

Equipment of automobile sales outlets, etc.

1,351

Mitsubishi Motors (Thailand) Co.,
Ltd. and another company

Automobile

Equipment of automobile sales outlets andproduction equipment of automobiles, etc.

17,407

Mitsubishi Motors Philippines Corp.
and another company

Automobile

Equipment of automobile sales outlets andproduction equipment of automobiles, etc.

2,498

PT Mitsubishi Motors Krama Yudha
Indonesia

Automobile

Production equipment of automobiles, etc.

17,130

Other overseas subsidiaries (18companies)

Automobile

Equipment of automobile sales outlets andproduction equipment of parts, etc.

798

(Note)

Total
Intangible assets and long-term prepaid expenses are included in the amount of investment.

- 45 -

2,317

690
252

93,628

2. Information about major facilities
Major facilities of the MMC group (MMC and its consolidated subsidiaries) are as follows.
(1) Information about reporting company(as of March 31, 2024)
Carrying amount (Millions of yen)Classification

Production
equipment

Office andfactory name
(Location)

Segment

Okazaki
Plant(Okazakishi, Aichi)

Production
Automobile equipment of
automobiles

Kyoto Plant(Ukyo-ku,
Kyoto-shi,
etc.)

Production
equipment ofAutomobile
automobile
enginesMizushima
Plant(Kurashikishi,
Okayama)

Production
Automobile equipment of
automobiles

Description

Research &Development
Center, EV
Research &Development
Development
and researchCenterAutomobile
equipment of(Okazakiautomobiles
shi, Aichi,
Ukyo-ku,
Kyoto-shi,etc.) (Note) 4

Otherequipment

Parts Center(Ama-gun,
Aichi, etc.)

Supply ofparts and
Automobile
management
equipment

Motor Pool
(Minato-ku,
Nagoya-shi,
Kurashikishi,
Okayama,
etc.)

Storage
Automobile equipment of
automobiles

WelfareFacility(Okazakishi, Aichi,
etc.)

Company
dormitory,
Automobile company
condominium, etc.

Sales
company(Neyagawashi, Osaka,
Atsuta-ku,
Nagoya-shi,
etc.)

Automobile

Others(Takatsu-ku,
Kawasakishi, etc.)

Automobile

Sales
company

Training
facility, etc.

Buildings
andstructures

Land
Machinery,equipmentSizeand(thousands Amountvehiclesof m2)

Others

Total

Numberofemployees

13,709

(22)
[3]
424

390

33,38253,815

3,407

4,524

16,908

(6)
[3]
488

11,154

3,044

35,632

1,374

6,160

16,266

[1]
966

7,486

5,869

35,783

3,224

14,70015,876[1]
10,673

11,8893,783

46,249

3,594

856

(127)
[0]
67

4,327

105

6,791

54

28

(77)
[94]
559

18,292

15

18,770

–

94

(105)
[7]
122

6,919

77

8,751

–

0

(23)
[99]
76

6,109

0

6,736

–

526

(42)
[42]
51

3,773

2,540

8,888

2,191

6,332

1,501

433

1,660

626

2,047

- 46 -

(Notes) 1.
2.
3.
4.

The figure in parentheses is the size of leased land.
The figure in square brackets is the size of rented out land (including sublet land).
The carrying amount of “Others” assets are tools, furniture and fixtures, and construction in progress.
Within the Research & Development Centers, the size and amount of the land in Ukyo-ku, Kyoto, is included
within the Kyoto Plant.

- 47 -

(2) Domestic subsidiaries(as of March 31, 2024)
Carrying amount (Millions of yen)
Office andfactory name
(Location)

Segment

Land
Machinery,
Description Buildings equipment
SizeandOthersand(thousands of Amount
Structures
vehiclesm2)

Higashi Nihon
Mitsubishi Motor
Equipment
Sales Co.,ofLtd. and another Automobile
automobile
sales company
sales outlets(Meguro-ku,
Tokyo, etc.)
Mitsubishi
Automotive
Logistics
Technology Co.,Ltd.
(Takatsu-ku,
Kawasaki-shi)

Transport
and storage
equipmentofautomobiles
Automobile
and parts,
equipmentof parts
sales
outlets, etc.

Design and
Mitsubishi
testing
Automotive
equipment
Engineering Co.,
Automobile ofLtd.
automobiles(Okazaki-shi,and parts,
Aichi)
etc.
Suiryo Plastics
Co., Ltd.
(Kurashiki-shi,
Okayama)

Production
Automobile equipmentof parts

10,108

Total

Numberofemployees

5,899

(114)
[22]
300

16,151

1,118

33,277

3,006

52

(10)
[0]
5

243

66

452

301

89

(10)
6

959

9

1

117

59

192

952

1,859

(7)
[0]
98

1,184

4,953

8,956

653

Mitsubishi
Motors Finance
Financial Car rentals,Co., Ltd.
serviceetc.
23
23,341––54 23,419(Minato-ku,
Tokyo)(Notes) 1. The figure in parentheses is the size of leased land.
2. The figure in square brackets is the size of rented out land (including sublet land).
3. The carrying amount of “Others” assets are tools, furniture and fixtures, and construction in progress.

- 48 -

194

(3) Overseas subsidiaries(as of March 31, 2024)
Carrying amount (Millions of yen)
Office andfactory name
(Location)

Segment

Land
Machinery,
Description Buildings equipment
SizeandOthersand(thousands of Amount
Structures
vehiclesm2)

Mitsubishi
Motors North
America, Inc.
(U.S.A.) andanothercompany

EquipmentofAutomobile automobile
sales outlets,etc.

Mitsubishi
Motors Europe
B.V.
(Netherlands)

Equipmentof parts
Automobile
sales outlets,etc.

Mitsubishi
MotorsAustralia, Ltd.
(Australia)

EquipmentofAutomobile automobile
sales outlets,etc.

Mitsubishi
Motors(Thailand) Co.,Ltd.
(Thailand) andanothercompany

Equipmentofautomobile
sales outlets,
Automobile production
equipmentofautomobiles,
etc.

Mitsubishi
MotorsPhilippines
Corp.
(Philippines)
and anothercompany

Equipmentofautomobile
sales outlets,
Automobile production
equipmentofautomobiles,
etc.

PT Mitsubishi
Motors Krama
Yudha
Indonesia(Indonesia)

Production
equipment
Automobile ofautomobiles,
etc.

Total

Numberofemployees

2,133

1,997

(173)
[4]
123

1,208

94

–

–

211

1,513

182

5,122

856

–

–

206

6,185

208

462

99

4,693

341

(1,502)
15,03674,226205

14,294

3,961

107,519

4,609

4,641

2,633

301

2,554

919

10,7491,316

11,164

10,277

[209]
509

8,943

35,36765,753

1,999

Equipmentof
Other overseas
automobile(36)
subsidiaries (19 Automobile sales outlets,[15]
companies)
production
4,092
4,596
59
3,103
1,053
12,845equipmentof parts, etc.
(Notes) 1. The figure in parentheses is the size of leased land.
2. The figure in square brackets is the size of rented out land (including sublet land).
3. The carrying amount of “Others” assets are tools, furniture and fixtures, and construction in progress.

- 49 -

1,377

3. Plans for acquisition and disposal of facilities
The capital expenditure plan of the MMC group (MMC and its consolidated subsidiaries) is determined
separately by the consolidated companies in principle. However, to ensure against overlap or excessive
expenditure across the whole Group, adjustments are made, primarily by MMC.
The MMC group’s main capital expenditures are new equipment and upgrades for production equipmentof automobile and automobile parts in the automobile business. For the following fiscal year (FY2024),
the MMC group is planning to make capital investments totaling 100,000 million yen (new equipment
and upgrades) for the year. The capital expenditure plan for MMC and each of its consolidated subsidiaries
in the automobile and financial service business are presented in the table below.
(Note)

The above amounts are the amounts planned as of March 31, 2024.

Company name

Segment

Automobile
MMC

PlannedamountDetails of capital expenditure(Millions ofyen)
Production equipment of
28,150automobiles
Development and research
8,610
equipment of automobiles
Equipment of automobile
4,640
sales outlets
Other

Other domestic subsidiaries (3companies)

54,450Automobile

Equipment of automobile
sales outlets

4,180

Financialservice

Investment of systems, etc.

1,930

Automobile

Mitsubishi Motors North America,
Automobile
Inc. and two other companies
Mitsubishi Motors Europe B.V.

Automobile

Mitsubishi Motors Australia, Ltd.

Automobile

Mitsubishi Motors (Thailand) Co.,
Automobile
Ltd. and another company

Mitsubishi Motors Philippines
Corp. and another company

Automobile

PT Mitsubishi Motors Krama
Yudha Indonesia

Automobile

Production equipment ofparts, design and testing
equipment of automobiles andparts, and transport andstorage equipment of
automobiles, etc.
Equipment of automobile
sales outlets, etc.
Equipment of parts sales
outlets, etc.
Equipment of automobile
sales outlets, etc.
Equipment of automobile
sales outlets and production
equipment of automobiles,
etc.
Equipment of automobile
sales outlets and production
equipment of automobiles,
etc.
Production equipment of
automobiles, etc.

- 50 -

Own capital andloans payable

13,050Sub total

Automobile sales companies (2companies)
Mitsubishi Motors Finance Co.,
Ltd.

Method offinancing

4,510

600
350
950

Own capital andloans payable
Own capital andloans payable

Own capital andloans payable

Own capital andloans payable
Own capital andloans payable
Own capital andloans payable

17,540Own capital andloans payable

2,570

Own capital andloans payable

11,630Own capital andloans payableCompany name

Segment

Other overseas subsidiaries (18companies)

Automobile

PlannedamountDetails of capital expenditure(Millions ofyen)
Equipment of automobile
sales outlets and production
1,290
equipment of parts, etc.

Total

100,000- 51 -

Method offinancing
Own capital andloans payableIV. Information about Reporting Company
1. Information about shares, etc.
(1) Total number of shares, etc.
i)

Total number of shares
Total number of authorized shares

Class
Common stock

1,575,000,000
Total

ii)

1,575,000,000

Issued shares
Number of issued
shares(As of March 31, 2024)(Shares)Class

Number of issued
shares(As of the filing date:June 21, 2024)(Shares)Name of stock listingor the name ofauthorized financial
instruments firms
association

Description

Common stock

1,490,282,496

1,490,282,496

Tokyo Stock Exchange
Prime Market

Number of shares forshare unit: 100 shares

Total

1,490,282,496

1,490,282,496––(2) Share acquisition rights
i)

Details of stock option program
MMC has adopted a stock option program. The program is operated by means of issuing shareacquisition rights in accordance with the Companies Act. The details of the program are as
below.
MMC resolved that it will issue its share acquisition rights to its Members of the Board(excluding Outside Directors) for stock options as equity-linked compensation, in accordancewith the Companies Act.

- 52 -

Share acquisition rights based on the resolution of the Board of Director’s meeting held on April 24, 2017
(First series share acquisition rights)
Resolution date

April 24, 2017

Number of share acquisition rights *421

Category and number of participant

Five Members of the Board (excluding Outside Directors)

Type of shares that will be issued upon exercise of shareacquisition rights *Common stock

Number of shares to be issued upon the exercise of one share
79 shares (Note) 1
acquisition right *Total number of shares that will be issued upon exercise ofshare acquisition rights *33,522 shares (Note) 1

Amount of contribution (issue price) per share acquisitionright *

1 yen per share

Fair value for a share acquisition right for one share *517.42 yen (Note) 1

Exercise period *The exercise period will commence on the earliest of thefollowing dates and end on April 30, 2070.
i) May 1, 2020ii) If a shareholders’ meeting of MMC (or, where noshareholder approval is required, the Board of Directorsof MMC) approves a merger agreement that provides
that MMC shall cease to exist, or a share exchange
agreement for a statutory share exchange (kabushiki
koukan) agreement or a plan for a statutory sharetransfer (kabushiki iten) that will result in MMC
becoming a wholly-owned subsidiary, the date of suchapproval.
iii) If a shareholders’ meeting of MMC (or, where noshareholder approval is required, the Board of Directorsof MMC) approves a transfer of all or substantially allof MMC’s business, or a spin-off agreement or spin-off
plan (kaisha bunkatsu) that results in all or substantiallyall of MMC’s business being assumed by a successor
company, the date of such approval.

Share issue price and additional paid-in capital per share in
the event of issuance of shares upon exercise of shareacquisition rights *Issue price: 518.42 yen (Note) 2
Additional paid-in capital per share shall be the amountobtained by multiplying the maximum limit of capitalincrease (as calculated in accordance with the provisions ofArticle 17, paragraph (1) of the Regulation on Corporate
Accounting) by 0.5, and any fraction of less than 1 yenarising as a result of such calculation shall be rounded up to
the nearest yen.

Conditions to exercise of share acquisition rights *(Note) 3

Matters concerning transfer of share acquisition rights *MMC and each of the grantees will enter into a shareacquisition right grant agreement. Under such agreement, thegrantees will be prohibited from transferring any Share
Acquisition Rights to a third party.

Matters concerning treatment of the replacement shareacquisition rights in a corporate reorganization by the
successor *(Note) 4- 53 -

Share acquisition rights based on the resolution of the Board of Director’s meeting held on November 26,
2020 (Fourth series share acquisition rights)
Resolution dateNovember 26, 2020

Number of share acquisition rights *150

Category and number of participant

One Member of the Board (excluding Outside Director)
One heir of a former Member of the Board (excluding
Outside Director)

Type of shares that will be issued upon exercise of shareacquisition rights *Common stock

Number of shares to be issued upon the exercise of one share
317 shares (Note) 1-2
acquisition right *Total number of shares that will be issued upon exercise ofshare acquisition rights *47,573 shares (Note) 1-2

Amount of contribution (issue price) per share acquisitionright *

1 yen per share

Fair value for a share acquisition right for one share *126.12 yen (Note) 1-2

Exercise period *The exercise period will commence on the earliest of thefollowing dates and end on April 30, 2053.
i) May 1, 2023
ii) If a shareholders’ meeting of MMC (or, where noshareholder approval is required, the Board of Directors
or Executive Officers of MMC) approves a merger
agreement that provides that MMC shall cease to exist,
or a share exchange agreement for a statutory shareexchange (kabushiki koukan) agreement or a plan for a
statutory share-transfer (kabushiki iten) that will resultin MMC becoming a wholly-owned subsidiary, the dateof such approval.
iii) If a shareholders’ meeting of MMC (or, where noshareholder approval is required, the Board of Directors
or Executive Officers of MMC) approves a transfer of
all or substantially all of MMC’s business, or a spin-off
agreement or spin-off plan (kaisha bunkatsu) that resultsin all or substantially all of MMC’s business being
assumed by a successor company, the date of suchapproval.

Share issue price and additional paid-in capital per share in
the event of issuance of shares upon exercise of shareacquisition rights *Issue price: 127.12 yen (Note) 2
Additional paid-in capital per share shall be the amountobtained by multiplying the maximum limit of capitalincrease (as calculated in accordance with the provisions ofArticle 17, paragraph (1) of the Regulation on Corporate
Accounting) by 0.5, and any fraction of less than 1 yenarising as a result of such calculation shall be rounded up to
the nearest yen.

Conditions to exercise of share acquisition rights *(Note) 3

Matters concerning transfer of share acquisition rights *Acquisition by transfer of the share acquisition rights
requires approval at the Board of Director’s meeting of
MMC.

Matters concerning treatment of the replacement shareacquisition rights in a corporate reorganization by the
successor *(Note) 4- 54 -

* These details are based on the end of the fiscal year under review (March 31, 2024). As of the end of themonth before the month of the filing date (May 31, 2024) there has been no change in the details required to
be described since the end of the fiscal year under review, so the description related to the end of the month
before the month of the filing date has been omitted.
(Notes) 1. Number of shares to be issued upon the exercise of one share acquisition right, total number of shares that will be
issued upon exercise of share acquisition rights, and fair value of a share acquisition right for one share
The number of shares to be issued upon the exercise of one Share Acquisition Right (the “Number of Issued
Shares”) shall be calculated by dividing 41,200 yen, which is the issue price for one Share Acquisition Right, (the“Issue Price”) by the fair value of a Share Acquisition Right for one share. If a grantee simultaneously exercises
his/her multiple share acquisition rights, the Number of Issued Shares shall be a maximum whole part of thenumber calculated by (i) multiplying the Issue Price by the number of the Share Acquisition Rights that are
exercised and then (ii) dividing the multiplied number by the fair value of a Share Acquisition Right for one share.
Hereinafter, the number of shares of common stock delivered by MMC when there is an exercise of Share
Acquisition Rights will be referred to as the “Number of Allotted Shares.”
The fair value of a Share Acquisition Right for one share shall be calculated on the grant date by using thefollowing Black-Scholes formula:
The fair value of a Share Acquisition Right for one share shall be the option price per share, based on the baseprice mentioned in (ii) and (vii) below, and calculated by using the Black-Scholes formula.

C = Se −t N (d 1 ) − e −rt XN (d 2 )Where:d1 =2S  
tln   +  r −  +
2 
X 
 t

, d 2 = d1 −  t(i) Option price per share: ( C )(ii) Share price ( S ): Closing price of the regular trading of the shares of common stock (futsū kabushiki) of
MMC on the Tokyo Stock Exchange on the day on which share acquisition rights are granted (if there is nosuch closing price, the base price of the immediately following trading day)(iii) Exercise price: ( X ): one (1) yen(iv) Expected time to maturity: ( t ): 28 years(v) Volatility (  ): Share price volatility calculated using the closing price of the regular trading of the shares ofcommon stock (futsū kabushiki) of MMC on each trading day during the period of twenty-eight (28) years(the 28-year period leading up to the day on which share acquisition rights are granted)(vi) Risk-free interest rate ( r ): Interest rate of national government bonds whose remaining years to maturity
corresponds to the expected time to maturity(vii) Dividend yield (  ): Dividend amount per share (actual dividends for the fiscal year in which the shareacquisition rights are granted) ÷ Share price set forth in (ii) above(viii)Cumulative distribution function for the standard normal distribution
After the issuance of the share acquisition rights, if MMC conducts a stock split (including a gratis allotment of
MMC’s common stock. The same applies for stock splits mentioned below), or a stock consolidation, the numberof shares subject to unexercised Share Acquisition Rights shall be adjusted using the formula described below,
and any fractional shares arising from the adjustment shall be rounded down.
(Adjusted number of shares) = (number of shares prior to adjustment) x (ratio of the stock split/consolidation)
In addition to the above, if it becomes necessary to adjust the number of shares subject to unexercised Share
Acquisition Rights, MMC may adjust it within a rational range, and any fractional shares arising from theadjustment shall be rounded down.

- 55 -

1-2. Number of shares to be issued upon the exercise of one share acquisition right, total number of shares that will
be issued upon exercise of share acquisition rights, and fair value of a share acquisition right for one share
The number of shares to be issued upon the exercise of one Share Acquisition Right (the “Number of Issued
Shares”) shall be calculated by dividing 40,000 yen, which is the issue price for one Share Acquisition Right,(the “Issue Price”) by the fair value of a Share Acquisition Right for one share. If a grantee simultaneously
exercises his/her multiple share acquisition rights, the Number of Issued Shares shall be a maximum whole partof the number calculated by (i) multiplying the Issue Price by the number of the Share Acquisition Rights thatare exercised and then (ii) dividing the multiplied number by the fair value of a Share Acquisition Right for one
share. Hereinafter, the number of shares of common stock delivered by MMC when there is an exercise of
Share Acquisition Rights will be referred to as the “Number of Allotted Shares.”
The fair value of a Share Acquisition Right for one share shall be calculated on the grant date by using thefollowing Black-Scholes formula:
The fair value of a Share Acquisition Right for one share shall be the option price per share, based on the baseprice mentioned in (ii) and (vii) below, and calculated by using the Black-Scholes formula.

Where:(i) Option price per share: ( C )(ii) Share price ( S ): Closing price of the regular trading of the shares of common stock (futsū kabushiki) of
MMC on the Tokyo Stock Exchange on the day on which share acquisition rights are granted (if there is nosuch closing price, the base price of the immediately following trading day)(iii) Exercise price: ( X ): one (1) yen(iv) Expected time to maturity: ( t ): 8 years(v) Volatility (  ): Share price volatility calculated using the closing price of the regular trading of the shares ofcommon stock (futsū kabushiki) of MMC on each trading day during the period of eight (8) years (the 8 year
period leading up to the day on which share acquisition rights are granted)(vi) Risk-free interest rate ( r ): Interest rate of national government bonds whose remaining years to maturity
corresponds to the expected time to maturity(vii) Dividend yield (  ): Dividend amount per share (average dividend paid in the last three fiscal years) ÷ Shareprice set forth in (ii) above(viii)Cumulative distribution function for the standard normal distribution
After the issuance of the share acquisition rights, if MMC conducts a stock split (including a gratis allotment of
MMC’s common stock. The same applies for stock splits mentioned below), or a stock consolidation, the numberof shares subject to unexercised Share Acquisition Rights shall be adjusted using the formula described below,
and any fractional shares arising from the adjustment shall be rounded down.
(Adjusted number of shares) = (number of shares prior to adjustment) x (ratio of the stock split/consolidation)
In addition to the above, if it becomes necessary to adjust the number of shares subject to unexercised Share
Acquisition Rights, MMC may adjust it within a rational range, and any fractional shares arising from theadjustment shall be rounded down.
2. Price of shares issued in the event of the issuance of shares as a result of the exercise of share acquisition rights
The total of the fair value per share of the share acquisition right and the issue price per share (1 yen) at the time
the share acquisition right is exercised- 56 -

3. Conditions for the exercise of share acquisition rights(i) The exercise of fragments of share acquisition rights that fall short of one unit shall not be possible.
(ii) In the event that the share acquisition rights are transferred, the recipient of the transfer shall be unable
thereafter to exercise the share acquisition rights that were transferred.
(iii) In the event that the share acquisition right grantee dies, the heir to the grantee shall be able to inherit theshare acquisition rights, and to exercise the share acquisition rights, as prescribed by the terms of the shareacquisition right grant agreement concluded between the grantee and MMC. However, in the event that said
heir dies, the heir of said heir shall be unable to exercise the share acquisition rights.
(iv) Other conditions shall be as prescribed in the share acquisition right grant agreement concluded between
MMC and the grantee.
4. Matters concerning the granting of share acquisition rights following a corporate reorganization
If MMC conducts a merger (in which MMC will cease to exist), a statutory share exchange (kabushiki koukan)
or a statutory share-transfer (kabushiki iten) (in which MMC will become a wholly-owned subsidiary) or a spinoff (kaisha bunkatsu) (in which MMC will transfer its business) (each, a “Corporate Reorganization”),
replacement share acquisition rights of the other party to the Corporate Reorganization (the “Replacement Share
Acquisition Rights”) as stipulated in Article 236, paragraph (1), item (viii) (a) through (e) of the Companies Act(the “Successor Company”) shall be granted to any grantee that holds Share Acquisition Rights immediately
before the effective date of the Corporate Reorganization in accordance with conditions pursuant to the issuanceguidelines for share acquisition rights. In such event, the Share Acquisition Rights held by such grantee (the “Old
Share Acquisition Rights”) shall be terminated in exchange for the Replacement Share Acquisition Rights.
However, such termination will not occur unless the relevant merger agreement, share exchange agreement, sharetransfer plan, spin-off agreement or spin-off plan provides that the Successor Company issues the Replacement
Share Acquisition Rights in accordance with conditions pursuant to the issuance guidelines for share acquisitionrights.
(a) Number of the Replacement Share Acquisition Rights that will be granted to a holder of the Old Share
Acquisition Rights
The same number as the number of the Old Share Acquisition Rights held by the relevant grantee(b) Type of shares that will be issued upon exercise of the Replacement Share Acquisition Rights
Common stock of the Successor Company(c) Number of shares to be issued upon exercise of one Replacement Share Acquisition Right
Such number shall be determined in accordance with total number of shares that will be issued upon exerciseof share acquisition rights above (Formula to calculate number of shares to be issued upon exercise of one
Share Acquisition Right) taking into consideration the terms of the Corporate Reorganization.
(d) Amount of Contribution at exercise (exercise price)
The amount payable to the Successor Company upon exercising a Replacement Share Acquisition Right shallbe determined by multiplying (a) the exercise price for one share of the Successor Company by (b) the numberof shares of the Successor Company to be issued or transferred upon the exercise of the Replacement Share
Acquisition Rights as determined in accordance with (c) above. The exercise price for one share is 1 yen.
(e) Exercise Period(a) The exercise period shall be from the later of the commencement of the exercise period described in thetable (“Exercise period”), or (b) the effective date of the corporate reorganization, to the end of the exercise
period described in the table (“Exercise period”)(f) Amount of Capital Stock and Capital Surplus to be increased by the issuance of shares upon exercise of theReplacement Share Acquisition Right
Such amounts shall be determined in accordance with Amount of Capital Stock and Capital Surplus Increased
by Issuance of Shares upon Exercise of Share Acquisition Right below.
The amount of capital stock increased by the issuance of shares upon the exercise of a Share Acquisition Right
shall be the amount obtained by multiplying the maximum limit of capital increase (as calculated in accordancewith the provisions of Article 17, paragraph (1) of the Regulation on Corporate Accounting) by 0.5, and any
fraction of less the one (1) yen arising as a result of such calculation shall be rounded up to the nearest one (1)yen. The amount of capital surplus increased by the issuance of shares upon the exercise of share acquisitionrights shall be the amount obtained by deducting the capital stock to be increased from the maximum limit ofcapital increase.
(g) Prohibition on Transfer of Replacement Share Acquisition Rights
The Successor Company and each of the grantees will enter into a share acquisition right grant agreement.
Under such agreement, the grantees will be prohibited from transferring any Replacement Share Acquisition
Rights to a third party.
(h) Conditions to exercise of the Replacement Share Acquisition Rights
Such conditions shall be substantially equivalent to those applicable to exercise of the Old Share Acquisition
Rights.
(i) Treatment of the Replacement Share Acquisition Rights in a Corporate Reorganization by the Successor
Such treatment will be substantially equivalent to that of the Old Share Acquisition Rights as set forth in thissection.

- 57 -

ii)

Description of rights plan

Not applicable.
iii) Other share acquisition rights
Not applicable.
(3) Exercises, etc. of moving strike convertible bonds, etc.
Not applicable.
(4) Changes in number of issued shares, stated capital, etc.
Date

Change in total number
of issued shares

Balance of total number
of issued shares

Change incapital stock

Balance ofcapital stock

Change inlegal capitalsurplus

Balance oflegal capitalsurplus(Shares)(Shares)(Millions ofyen)(Millions ofyen)(Millions ofyen)(Millions ofyen)

284,382

118,680

118,680

October 20, 2016
Common stock
Common stock
118,680(Note)
506,620,577
1,490,282,496(Note) Paid-in third-party allotment
506,620,577 shares
Issue price468.52 yen
Amount incorporated into capital
234.26 yen
Allottee
Nissan Motor Co., Ltd.

(5) Shareholder composition(As of March 31, 2024)
Status of shares (Number of shares constituting one voting unit: 100 shares)
PublicsectorFinancial
institutions

Financial
instruments
business
operators

Number ofshareholders

–

34

54

Number ofshares held
(Units)–1,739,747

Percentage
of votingshares (%)

–

11.67

Category

Foreign investors
Other
corporations

Shares lessthan oneunit(Shares)Companies,
etc.

Individuals

Individuals,
etc.

1,414

404

384

228,667

230,957–

228,425

8,536,038

1,690,785

3,098

2,702,632

14,900,725

209,996

1.53

57.29

11.35

0.02

18.14

100

–

Total

(Notes) 1. The 805,488 treasury shares stated in the shareholders register, are presented as follows: 8,054 voting units areincluded in “Individuals, etc.” and 88 shares are included in “Shares less than one unit.” All treasury shares are
actually held.
2. In “Other corporations,” 57 voting units under the name of the Japan Securities Depository Center, Inc. are
included.

- 58 -

(6) Major shareholders(As of March 31, 2024)

Name

Address

Nissan Motor Co., Ltd.

2, Takara-cho, Kanagawa-ku, Yokohama-shi,
Kanagawa
Mitsubishi Corporation
2-3-1, Marunouchi, Chiyoda-ku, Tokyo
The Master Trust Bank of Japan, Ltd. Akasaka Intercity AIR, 1-8-1 Akasaka, Minato(Trust account)
ku, Tokyo
Custody Bank of Japan, Ltd. (Trust
1-8-12, Harumi, Chuo-ku, Tokyoaccount)
Mitsubishi Heavy Industries, Ltd.
3-2-3, Marunouchi, Chiyoda-ku, Tokyo
MUFG Bank, Ltd.
2-7-1, Marunouchi, Chiyoda-ku, Tokyo
NORTHERN TRUST GLOBAL
10 RUE DU CHATEAU D’EAU L-3364
SERVICES SE,LEUDELANGE GRAND DUCHY OF
LUXEMBOURG RE LUDU RE:
LUXEMBOURG
UCITS CLIENTS(3-11-1, Nihonbashi, Chuo-ku, Tokyo)
15.315 PCT NON TREATYACCOUNT(Standing proxy: The Hongkong andShanghai Banking Corporation
Limited, Tokyo branch, CustodianService Division)
THE BANK OF NEW YORK
240 GREENWICH STREET, NEW YORK, NY
MELLON 140044
10286, U.S.A.
(Standing proxy: Mizuho Bank, Ltd., (Tower A SHINAGAWA INTERCITY, 2-15-1,
Settlement & Clearing Services
Konan, Minato-ku, Tokyo)
Department)
STATE STREET BANK WEST
1776 HERITAGE DRIVE, NORTH QUINCY,
CLIENT - TREATY 505234
MA 02171, U.S.A.
(Standing proxy: Mizuho Bank, Ltd., (Tower A SHINAGAWA INTERCITY, 2-15-1,
Settlement & Clearing Services
Konan, Minato-ku, Tokyo)
Department)
Custody Bank of Japan, Ltd. (Trust
1-8-12, Harumi, Chuo-ku, Tokyoaccount 4)
Total

–

- 59 -

Number ofshares held
(Shares)

Percentage of
total number ofshares issued(excluding
treasury shares)(%)

506,620,577

34.01

298,012,214
104,746,400

20.00
7.03

27,795,920

1.86

21,572,455
14,877,512
12,240,000

1.44
0.99
0.82

11,611,400

0.77

7,914,200

0.53

7,348,900

0.49

1,012,739,578

67.99

(7) Voting rights
i)Issued shares(As of March 31, 2024)
Number of shares(Shares)Classification

Number of voting rights(Units)Description

Shares without voting rights

–

–

–

Shares with restricted voting rights(Treasury shares, etc.)

–

–

–

Shares with restricted voting rights(Other)

–

–

–

–

Number of shares for share
unit: 100 shares

14,892,667

Same as above<Treasury shares>
Shares with complete voting rights(Treasury shares, etc.)

Common stock

805,400<Reciprocal holding>Common stock400

Shares with complete voting rights(Other)Common stock(Note) 1

1,489,266,700

Shares less than one unit

Common stock(Note) 2

209,996–

Same as above

Total number of issued shares

1,490,282,496––

Total number of voting rights–

14,892,667–(Notes) 1. The number of “Shares with complete voting rights (Other)” includes 2,668,506 shares (26,685 units of voting
rights) of MMC held by the Board Incentive Plan (BIP) Trust and 5,700 shares (57 units of voting rights) in thename of Japan Securities Depository Center, Incorporated.
The 26,685 units of voting rights in the Board Incentive Plan (BIP) Trust are not to be exercised.
2. The number of “Shares less than one unit” includes 88 treasury shares held by MMC and 6 shares of MMC heldby the Board Incentive Plan (BIP) Trust.

ii)

Treasury shares, etc.
(As of March 31, 2024)

Name of shareholders<Treasury shares>
Mitsubishi Motors
Corporation

Address ofshareholders

Number of shares
held under own name(Shares)Number of shares
held under the nameof others(Shares)

Total number ofshares held
(Shares)

Percentage of total
number of issued
shares(%)

3-1-21, Shibaura,
Minato-ku, Tokyo

805,400–

805,400

0.05

865-1, Aza<Reciprocal holding> Imuraminamioki,
Nagano Mitsubishi
Higashiwada,
Motor Sales Co., Ltd. Nagano-shi,
Nagano

400

–

400

0.00

(Note)

Total–
805,800–
805,800
0.05
The number of “Treasury shares” does not include shares of MMC held by the Board Incentive Plan (BIP) Trust.

- 60 -

(8) Details of the Executive and Employee Stock Ownership Plani)

Overview of the Board Incentive Plan (BIP) Trust
MMC has introduced a stock compensation plan (hereinafter the “BIP Trust”) that utilizes
trusts as an incentive plan for its Executive Officers and Corporate Officers, etc. (hereinafterreferred to as “Executive Officers, etc.”) This applies to MMC’s Long-term Performancelinked Compensation and Deferred Retirement Compensation. The BIP Trust is a system
whereby the trust obtains the shares of MMC from the stock market funded by the cash
contributed by MMC and through such trust, MMC will deliver the shares of MMC or pay
money equivalent to the converted value of such shares to Executive Officers, etc., according
to their position and degree of achievement of performance targets. As the trust agreement
period entered into at the inception of the plan in 2020 was set to expire in August 2023, it was
renewed in August 2023, and the new trust period was set from August 14, 2023, to August 31,
2026. In December 2023, an additional trust was placed and the shares of MMC were acquired
accordingly. If the trust agreement is amended or if there is an additional trust when this trust
period expires, the trust period will be extended. The voting rights of the shares of MMC underthe BIP Trust will not be exercised throughout the trust period.

ii)

Total number of shares anticipated to be obtained by the BIP Trust and the total amount
BIP Trust obtained 1.16 million shares of MMC valued at 253 million yen in FY2020. In
December 2023, an additional trust was established to acquire 1.76 million shares of MMC for
784 million yen. The number of shares to be acquired by the Trust in the event that the durationof the Trust is extended has yet to be determined.

iii) Scope of beneficiaries
MMC’s Executive Officers, Corporate Officers and people recognized by the MMC
Compensation Committee who meet the beneficiary requirements (However, beneficiaries do
not include non-residents of Japan and persons forecast to become non-residents of Japan in
future.)- 61 -

2. Acquisition of treasury shares[Class of shares]
Acquisition of shares of common stock under Article 155, item (vii) of the Companies Act(1) Acquisition by resolution of the General Meeting of Shareholders
Not applicable.
(2) Acquisition by resolution of the Board of Directors
Not applicable.
(3) Items not based on resolution of the General Meeting of Shareholders or Board of Directors
Classification

Number of shares (Shares)

Treasury shares acquired during the fiscal
year under review

Total value (Yen)
49,530107

Treasury shares acquired during the period––
from April 1, 2024 to the filing date
(Note) The number of shares of treasury shares acquired during the period from April 1, 2024 to the filing date does notinclude the number of shares acquired through purchase of shares less than one unit during the period from June 1,
2024 to the filing date of this Annual Securities Report.

(4) Status of disposal and ownership of acquired treasury sharesFiscal year under review
Classification

Number of shares(Shares)

From April 1, 2024 to the filing date

Total disposal
value
(Yen)

Number of shares(Shares)

Total disposal
value
(Yen)

Acquired treasury shares offered forsubscription

–

–

–

–

Acquired treasury shares that were disposed

–

–

–

–

Acquired treasury shares transferred formerger, share exchange, share delivery andspin off

–

–

–

–

Other
(disposal upon exercise of share acquisitionrights)47,57341,742,893––

Treasury shares held
805,488–805,488–(Notes) 1. The number of “Other (disposal through exercise of share acquisition rights)” and “Treasury shares held” during
the period from April 1, 2024 to the filing date does not reflect changes during the period from June 1, 2024 to
the filing date of this Annual Securities Report.
2. The number of shares of treasury shares held during the fiscal year under review and the period from April 1,
2024 to the filing date does not include the number of shares of MMC held by Board Incentive Plan (BIP) Trust.

- 62 -

3. Dividend policy
Concerning shareholder returns, there is great demand for capital in order to achieve sustainable growth,such as through further promotion of technological innovations and environmental efforts; therefore, it isour basic policy to maintain the stable distribution of profits to shareholders after comprehensively
considering cash flows, financial conditions and business performance.
Furthermore, regarding the number of dividend payments to be made each fiscal year, MMC’s basic policy
is to conduct two dividends – an interim dividend and a year-end dividend. The organs that decide onthese dividends are the General Meeting of Shareholders for the year-end dividend and the Board of
Directors for the interim dividend. The Company’s Articles of Incorporation stipulate that the Company
may pay interim dividends stipulated in the provisions of Article 454, Paragraph 5 of the Companies Act.
On the basis of the above policy, MMC would like to set the end-of-term dividend at 5 yen per share.
Including the interim dividend of 5 yen, this will make the dividend for the term 10 yen per share.
The remaining retained earnings will be invested in capital expenditures and research and development
expenses to lay the foundation for realization of sustainable growth in the future.
(Note)

Dividends for which record date is in the fiscal year under review with effective date in the following fiscal year

Resolution dateMeeting of theBoard ofDirectors held
on November 28, 2023

Total amount of

Dividend per

dividend(Millions of yen)

share
(yen)

7,447

5.0

Ordinary General
Meeting of
7,447
5.0
Shareholders heldon June 20, 2024
(Notes) 1. The total amount of dividend based on the resolution at the Meeting of the Board of Directors on November 28,
2023 includes 4 million yen of dividend for the shares of MMC held by the Board Incentive Plan (BIP) Trust
Account.
2. The total amount of dividend based on the resolution at the Ordinary General Meeting of Shareholders on June20, 2024 includes 13 million yen of dividend for the shares of MMC held by the Board Incentive Plan (BIP)
Trust Account.

- 63 -

4. Information about corporate governance, etc.
(1) Overview of corporate governancei)

MMC’s basic view regarding corporate governance
MMC considers compliance to be its highest priority, and makes the continual strengthening
and improvement of corporate governance a management priority in order to achieve MMC’s
sustainable growth and improvement of the MMC’s medium and long-term corporate value so
as to meet the expectations of all of its stakeholders, including its shareholders and customers,
based on the corporate philosophy (Vision & Mission).

VisionCreate a vibrant society by realizing the potential of mobility
Mission
1. Provide new experiences for our customers with creative products and service excellence
2. Make positive contributions to the sustainable development of our society
3. Act sincerely as a trusted company
4. Enhance stakeholder value by leveraging the Allianceii)

Overview of corporate governance system and reason for adoption of the system
We are a company with a Nomination Committee, etc. in order to achieve swift execution ofbusiness in quick response to environmental changes by clearly separating supervisory andexecution function and ensuring the soundness and transparency of management throughfurther strengthening of supervision and implementation of more thorough risk management.

(i) Board of Directors and Members of the Board
The Board of Directors is responsible for making decisions concerning important management
issues and overseeing business execution.
MMC has established the following basic policy regarding the policy for nominating
candidates for Directors and the composition and size of the overall Board of Directors.
As it is important that the appropriate number of Directors, internal or outside, with diversity
in terms of knowledge, experience, expertise and background, engage in vigorous discussions
from a variety of perspectives in order for the Board to objectively and multi-dimensionallydeliberate on management policies and execution of specific matters, and to appropriately
supervise the execution status of operation by Executive Officers, candidates for Directors shallbe nominated to realize this.
In accordance with the above policy, the independence and diversity of the Board shall beensured.
In order to strengthen the supervisory function of the Board, the majority of Board members
shall be Outside Directors. Furthermore, in order to fulfill their duties from an independent andobjective standpoint, at least one-third of the Directors shall be Independent Directors, andconsideration shall be given to their total term of office. In addition, the majority of theNomination, Compensation, and Audit Committees, respectively, shall be Outside Directors,
and in principle, the chairperson of each committee shall be an Outside Director.
Outside Directors shall be nominated based on their diverse knowledge, experience, andexpertise, which cannot be obtained from Internal Directors alone, for example, specialists inlaw, accounting, finance, etc., persons with management experience at global companies above
a certain size, and persons with a wealth of knowledge of world affairs or social and economic- 64 -

trends, etc. Importance shall be placed on their eagerness to devote the necessary time andefforts to understand the business of the Company as a group, and discuss the direction the
Company as a group should take, and to express their opinions to the management without
hesitation. In addition, the diversity of backgrounds such as gender, age, and internationality
shall be also taken into account, as it shall be recognized that multiple perspectives contributeto business promotion and appropriate supervision and auditing.
As for Internal Directors, Executive Officer, President & CEO, and a person who canappropriately serve as a member of the Audit Committee based on his or her execution
experience of operation at the Company shall be nominated.
It shall be ensured that the Board is composed of the number of people who can openly andconstructively discuss and exchange opinions.
As of June 21, 2024, the Board comprised 13 Members (Chairman of the Board (Outside
Director) Tomofumi Hiraku (Chairperson), Member of the Board Takao Kato, Member of theBoard Hitoshi Inada, Outside Director Shunichi Miyanaga, Outside Director Main Kohda,
Outside Director Kenichiro Sasae, Outside Director Hideyuki Sakamoto, Outside Director
Yoshihiko Nakamura, Outside Director Joji Tagawa, Outside Director Takahiko Ikushima,
Outside Director Takehiko Kakiuchi, Outside Director Kanetsugu Mike, and Outside Director
Junko Ogushi), and eleven (11) of the thirteen (13) Directors are Outside Directors withextensive experience and high levels of insight, and five (5) of the Outside Directors(Tomofumi Hiraku, Main Kohda, Kenichiro Sasae, Yoshihiko Nakamura, and Junko Ogushi)
are Independent Outside Directors.
The Board of Directors has the following three statutory committees, which supervise Directors
and Executive Officers together with the Board of Directors. Each committee is composed ofa majority of Outside Directors, and the Chairpersons of each committee are Outside Directors.
Through this, a system is in place in which corporate governance functions in a fair andtransparent manner.
(A) Nomination Committee
The Nomination Committee makes decisions on proposals for the appointment anddismissal of Members of the Board to be proposed to the General Meeting of
Shareholders, approves proposals for the appointment and dismissal of Executive
Officers proposed by Representative Executive Officer, President & CEO (hereinafter
the “President”) to the Board of Directors, and discusses succession planning for MMC’s
President. (Members: Outside Director Main Kohda (chairperson), Outside Director
Kenichiro Sasae, Outside Director Hideyuki Sakamoto, Chairman of the Board (Outside
Director) Tomofumi Hiraku, and Outside Director Takehiko Kakiuchi)(B) Compensation Committee
The Compensation Committee deliberates and makes decisions regarding policy withrespect to determining compensation, etc. of Members of the Board and Executive
Officers, and regarding details of compensation, etc. per individual. (Members: Outside
Director Shunichi Miyanaga (chairperson), Outside Director Main Kohda, Outside
Director Kenichiro Sasae, Outside Director Joji Tagawa, and Member of the Board
Takao Kato)(C) Audit Committee
The Audit Committee audits the execution of duties of the Members of the Board andExecutive Officers, supervises the status of implementation and operation of internal
control systems, and prepares audit reports; furthermore, it implements internal
investigations into matters for which the Board of Directors determined that it isunreasonable for the person who executes the business to conduct an investigation.
(Members: Outside Director Yoshihiko Nakamura (chairperson), Outside Director- 65 -

Takahiko Ikushima, Outside Director Kanetsugu Mike, Outside Director Junko Ogushi,
and Member of the Board Hitoshi Inada)(ii) Executive Officers
The Board of Directors decides matters that require resolutions of the Board of Directors
pursuant to laws and regulations and provisions of MMC Articles of Incorporation, mattersdelegated by resolutions of the General Meeting of Shareholders, and certain importantmatters concerning business management, and authority to make decisions on businessexecution for items other than these is delegated to Executive Officers.
Executive Officers make decisions on business execution delegated to them by the Board of
Directors and are responsible for carrying out their execution. The President is selected ashead of the executive department by resolution of the Board of Directors.
MMC has 10 Executive Officers (including the President) as of June 21, 2024.
(iii) Outline of decision-making process for business execution and various committees
Important management matters are decided after deliberation at the “Executive Committee(EC),” which is composed of all Executive Officers and chaired by the President.
Furthermore, important matters related to product projects are decided after deliberation at
the “Product Meeting (PDM).”
Moreover, matters related to internal control are decided after deliberation at the “Internal
Control Committee.”
For each of these, the President serves as Chairperson and relevant Executive Officers are
members.
When executing business, the Executive Officer, Executive Vice President is positioned as
the responsible person with authority and responsibility for business execution within thescope of duties, in addition to the President who is the head of the executive department. In
addition, delegation of decision-making authority is systematized based on the Delegation of
Authority (DOA) Rules, in which items subject to delegation and their scope are defined, anddecision-making procedures for major matters are formulated to speed up business execution
and improve the transparency of the decision-making process.

- 66 -

MMC’s corporate governance and business execution systems as of June 21, 2024, arepresented in the figure below.

iii) Other matters related to corporate governance(i) Information about development of Internal Control Systems
System to ensure appropriate business activities
MMC has set up vision and missions as the basic concept so that the employees of the
MMC group look toward the future, share the same ideas and act as a unit. In addition,
MMC has established MMC WAY, which represents the frame of mind and behavior thateach one of employees must practice for missions to realize the vision, and moreover the
Global Code of Conduct serving as the foundation for these provisions and the norms to befollowed by all officers and employees.
Additionally, to develop a system to ensure appropriate business activities, MMC has
resolved the Basic Policy on the Establishment of Internal Control Systems at the Board of
Directors, as follows.
(a) System to ensure that the Executive Officers’ and employees’ performance of theirduties complies with applicable laws and regulations and the Articles of Incorporationof MMC• To comply with laws and regulations, the Articles of Incorporation and social norms,
MMC shall establish a code of conduct, build an organizational structure, and carryout education and training. MMC shall also establish a contact point for reportinginternal problems, and shall use the information to prevent and rectify problems andstop them from occurring again.
• To monitor company management, MMC shall appoint Outside Directors, andstrengthen the function of audits by the Audit Committee which includes Outside
Directors as its members.
• The internal audit division shall conduct strict audits to check whether MMC’s
business execution is in violation of laws and regulations, the Articles of- 67 -

Incorporation, internal regulations or others. If a problem is discovered, the internal
audit division shall report it to the relevant Members of the Board or others, andperiodically check the status of improvement measures following occurrence.
• MMC shall establish Internal Control Committee within MMC as the coreorganization for internal controls based on the Companies Act, with the Executive
Officer, President & CEO as the chairman and officer in charge of internal control
and administration as the vice chairman.
(b) Regulations and other systems to manage risk of loss
• To manage business risk, MMC shall clearly prescribe respective standards formaking proposals to the Board of Directors and Executive Committee in each of therules of the Board of Directors and rules of Executive Committee, and operate inaccordance with these rules.
• MMC shall appoint an employee in charge of risk management at each organization(e.g. division), and shall make efforts to establish and strengthen the risk
management structure with the said employee at the core of these efforts.
• MMC shall establish a body in charge of promoting risk management and work todevelop and strengthen its overall risk management structure.
• To prepare for the occurrence of unforeseen circumstances, MMC shall develop asystem to enable prompt reporting to MMC’s Members of the Board and others, andprompt, accurate responses.
(c) System to ensure that the Executive Officers’ performance of their duties is executed
efficiently• MMC shall prescribe a management plan throughout the company and clarify
detailed business targets and methods of execution at each functional company bodyin order to achieve the plan. Members of the Board shall periodically receive reportson the plan’s implementation, and shall work to maintain and improve management
efficiency.
• MMC shall clarify the roles and authorizations of the Members of the Board andExecutive Officers, and the Board of Directors and Executive Committee, etc. shall
execute business efficiently based on the rules of the Board of Directors and rulesof Executive Committee, etc.
• In order to develop a system for efficient organizational operation and businessexecution and to establish a system in which decisions on important matters can bemade with speed and agility, the Board of Directors shall widely delegate theauthority of decision-making for business execution to the Executive Officers within
the scope of the legal limit, thus securing efficient execution of their duties.
• To promote prompt decision-making of MMC and clarify the decision-making
process, MMC shall develop clear and highly transparent standards for authority.
(d) System to store and manage information related to the Executive Officers’ performanceof their duties• Based on internal rules, MMC shall prepare information pertaining to execution ofduties by Executive Officers as physical documents or electronic data, and shallappoint a person responsible for the management of this information. Preparation
methods, retention methods, retention periods, duplication methods, disposal
methods and other matters shall be determined in accordance with the relative
importance of information, and the information shall be appropriately managed.
- 68 -

(e) System to ensure appropriate business activities of MMC group which comprises MMC,
the parent company and the subsidiaries• MMC shall determine the bodies with control over MMC’s subsidiaries,
responsibilities and authorizations for the management of MMC’s subsidiaries,
management methods and other matters in the internal rules, thus securing proper
operation of duties across MMC group.
• MMC shall supervise and manage its subsidiaries, aiming for appropriate businessexecution by their officers and employees in line with laws and regulations and the
Articles of Incorporation, compliance with its code of conduct, and establishment
and improvement of operational audit systems in a manner that is suitable for theirsizes, business types, etc.
• MMC shall establish and strengthen its subsidiaries’ risk management systems,
depending on their sizes, business types, etc., through giving directions regarding
implementation of risk management.
• MMC shall strengthen, develop and streamline its subsidiaries’ business operations,depending on their sizes, business types, etc., through supervising and managing
them in accordance with Rules for Management of Subsidiaries and Affiliates andother internal rules.
• MMC shall improve Rules for Management of Subsidiaries and Affiliates and otherinternal rules so that it can receive explanations and reports from its subsidiaries
regarding important information (e.g. business operations, performance, andfinancial conditions) in advance or in an ex-post facto manner.
• MMC and its subsidiaries shall ensure the appropriateness of their respective
financial information and develop the bodies and internal rules necessary for the
preparation and disclosure of reliable financial reporting.
(f)Matters related to the Members of the Board and employees to support Audit
Committee’s audit activities• A body to assist Audit Committee with its duties shall be established and dedicatedstaff shall be allocated to this body.

(g) Matters related to the independence of Members of the Board and employees in (f)above from the Executive Officers and ensuring the effectiveness of directions given
to those Members of the Board and employees• The employee assigned to assist Audit Committee with its duties shall only carry out
duties under its directions without concurrently performing duties for Executive
Officers or other sections.
• When personnel changes are made to staff assigned to assist Audit Committee withits duties, opinions shall be sought from the committee in advance. In addition,
evaluations of those dedicated staffs shall be carried out by Audit Committee.
(h) System to allow the Members of the Board (excluding Members of the Audit
Committee), Executive Officers and employees of MMC, the Members of the Board,
Audit & Supervisory Board Members and employees of MMC’s subsidiaries or persons
received reports from them to report information to Audit Committee, and othersystems related to reporting to Audit Committee• The Members of the Audit Committee shall attend meetings of the Board of
Directors and other important meetings of MMC.

- 69 -

• MMC shall develop a framework to steadily provide important internal information
regarding management, compliance and other matters of MMC and its subsidiaries
to the Members of the Audit Committee and ensure that it is thoroughly operated.
• Officers and employees of MMC and its subsidiaries shall report matters regarding
business execution promptly and appropriately when requested to do so by MMC’s
Audit Committee.
• Executive Officers shall report to Members of the Audit Committee immediately ifthey find a fact which may cause a serious damage to MMC.
(i)

System to ensure that those who report the matters described in (h) do not face
unfavorable treatment on the grounds that such reports are made• It is prohibited to unfavorably treat officers and employees of MMC and its
subsidiaries who report such matters directly or indirectly to Audit Committee on
the grounds that such reports are made. This prohibition shall be notified to all
officers and employees of MMC and its subsidiaries.

(j)

Matters related to procedures for the prepayment or reimbursement of expenses
incurred for Members of the Audit Committee in executing duties (limited to thoserelated to the execution of duties of Audit Committee), and settlement policy for
expenses or debt incurred for other related duties• In case Members of the Audit Committee make requests to MMC for the prepayment
of job-related expenses, etc. in accordance with Article 404, paragraph (4) of theCompanies Act, these expenses or debts shall be paid promptly or settled after being
examined by relevant sections unless it can be verified that these expenses or debts
are not necessary for Members of the Audit Committee to execute their duties.

(k) Other systems to ensure that Audit Committee conducts audits effectively• The Audit Committee of MMC shall periodically conduct exchanges of opinionswith the CEO, and work in cooperation with the internal audit division and the
Accounting Auditors, thus facilitating proper communication and effective auditing
operations.
(l)System for eliminating criminal or unethical organizations• MMC and its subsidiaries shall, in a unified manner across all companies, respondto unreasonable demands from antisocial forces that pose a threat to the order andsafety of society with a resolute stance, and shall ensure that they have absolutely
no relations with antisocial forces.

(ii) Information about development of risk management framework
MMC has put in place and works to improve its risk management system for the entire Groupthrough three types of risk management activities: priority risk management, departmental
risk management and subsidiaries and affiliates risk management.
For priority risk management, MMC selects risks that the entire MMC group faces directly,that have significant potential impact and a high degree of urgency. For each risk, MMC
assigns “risk owners” and works as quickly as possible to reduce these risks.
In departmental risk management, MMC has appointed employees in charge of risk
management to each division or plant. These employees work to reduce risks through repeatedapplication of the PDCA cycle, which involves identifying and evaluating each risk, devisingand implementing countermeasures, and monitoring.
- 70 -

Subsidiaries and affiliates risk management includes initiatives for addressing various typesof risks encountered by MMC’s subsidiaries and affiliates. MMC periodically confirms thestatus of activities such as improvement of business continuity plans (BCPs), and proposesand directs improvements, as necessary.
In FY2022, we set up the Internal Control Promotion Office as a new measure to strengthen
governance. Recently, geopolitical risks, economic security risks, and business and humanrights risks in which strategic, financial, operational, and hazard risks are intricatelyintertwined have become apparent, and we have a system to expand the scope of risks andmanage them.
These risk management efforts are regularly reported to the Board of Directors as a major
activity of internal controls to confirm their effectiveness.
MMC’s basic policy in preparation for disaster, such as earthquake or other large-scale natural
disaster or an outbreak of infectious disease, is to ensure the safety of customers, as well as
employees and their families and to assist local communities. To this end, MMC preparesdisaster countermeasures and Business Continuity Management (BCM).
In FY2020, the BCM Committee was newly established as a permanent meeting body. In
FY2022, MMC consolidated its existing internal initiatives to strengthen BCM activities
during peacetime and took company-wide cross-functional measures.
MMC has formulated an emergency response manual and company-wide BCP operatingprocedures that include the establishment of an emergency response organization andclarification of the chain of command in the event of a major incident and has established asystem to ensure an appropriate response framework. Assuming an emergency in peacetime,
we are conducting company-wide BCP drills in which a company-wide task force isestablished, all our bases report employees’ safety and damage status, and the task force gives
instructions once a year.
In order to prepare for unforeseen contingencies MMC operates emergency contact systems
that enable the rapid communication of information to the senior management, as well as aswift and accurate response.
To support those who have difficulty returning home, the Head Office has, in accordance with
the Metropolitan Tokyo Ordinance on Measures for Stranded Persons, stockpiled supplies
assuming that employees will be on standby within the company for three days. Plants arealso working with neighboring municipalities to prepare supplies and receive visitors.

(iii) Conditions for resolution on the election of Members of the Board
MMC’s Articles of Incorporation stipulate that Members of the Board are to be elected by amajority vote of the General Meeting of Shareholders where shareholders holding at least onethird of the voting rights of shareholders eligible to exercise their voting rights are inattendance, and that a resolution to elect a Member of the Board is not to be made bycumulative voting.

(iv) Matters for resolution by the General Meeting of Shareholders that may be resolved by the
Board of Directors and reason therefora. Acquisition of shares
MMC’s Articles of Incorporation stipulate that it may acquire treasury shares throughmarket transactions and so forth by a resolution of the Board of Directors in accordance- 71 -

with the provisions of Article 165, paragraph (2) of the Companies Act so as to enable
flexible acquisition of treasury shares in response to its management situation, financial
situation, and other situations.
b. Exemption from liability of Members of the Board and Executive Officers
To enable Members of the Board and Executive Officers to perform their roles as expected,
MMC’s Articles of Incorporation stipulate that MMC may exempt Members of the Board(including former Members of the Board) and Executive Officers (including former
Executive Officers) from their compensation liability in cases where the criteria stipulated
by laws and regulations pursuant to Article 423, paragraph (1) of the Companies Act apply
by a resolution of the Board of Directors, by limiting the liability to the amount obtainedby deducting the minimum liability limit amount stipulated by laws and regulations fromthe compensation liability amount.
c. Interim dividend
In order to return profits flexibly to shareholders, MMC’s Articles of Incorporation
stipulate that MMC may pay an interim dividend as provided by Article 454, paragraph (5)of the Companies Act by a resolution of the Board of Directors to the final shareholder orregistered pledgee of shares listed or recorded on the shareholders register as of September
30 each year.

(v) Outline of the contents of contracts for limiting liability, etc.
Furthermore, MMC’s Articles of Incorporation state that MMC may conclude agreementswith Members of the Board (excluding Members of the Board who execute business) to limit
their compensation liability in cases where the criteria stipulated by laws and regulations
regarding compensation liability pursuant to Article 423, paragraph (1) of the Companies Act
apply; (however, the limit of compensation liability based on the agreements shall be thehigher of the predetermined amount of 5 million yen or more or the minimum amount ofliability stipulated by laws and regulations). MMC has concluded agreements with Membersof the Board who do not serve concurrently as Executive Officers limiting their liability fordamages to the higher of 7 million yen or the minimum amount of liability stipulated in Article
425, paragraph (1) of the Companies Act for the liability stipulated in Article 423, paragraph(1) of the same Act.

(vi) Outline of the directors and officers liability insurance policy, etc.
MMC has entered into a directors and officers liability insurance policy as provided for in
Article 430-3, paragraph (1) of the Companies Act with an insurance agency, as follows.
<Scope of insureds>
Directors, Executive Officers, Audit & Supervisory Board Members and Corporate Officers(including retired individuals) of MMC and its subsidiaries<Outline of content of insurance policy>
The insurance policy covers the insured’s amount of indemnification and such costs as related
litigation expenses incurred from claims for damages arising from acts (including
nonfeasance) carried out by the insured as an officer or a person at a certain position of MMC
and/or its subsidiaries. However, losses and costs personally incurred by directors and officers
through criminal acts and intentional illegal activities, such as bribery, are not covered by the- 72 -

policy as a measure to ensure that the proper performance of duties of officers, etc., is not
impaired. The full amount of insurance premiums is borne by MMC and its subsidiaries.

(vii) Changes in criteria for special resolutions of the General Meeting of Shareholders and reason
thereforTo ensure that special resolutions of the General Meeting of Shareholders are carried out in atimely and smooth manner, the Articles of Incorporation stipulate that special resolutions of
the General Meeting of Shareholders as provided by Article 309, paragraph (2) of theCompanies Act are to be carried out by a majority of at least two-thirds, where shareholders
holding at least one-third of the voting rights of shareholders eligible to exercise voting rights
are in attendance.

- 73 -

iv)

Activities of the Board of Directors, etc.
The following describes the status of meetings of the Board of Directors, Nomination
Committee and Compensation Committee held during the fiscal year under review, as well as
the attendance of each Director. In principle, the Board of Directors, Nomination Committee
and Compensation Committee of the Company are held on a monthly basis.

Name

Board of Directors
Number of meetings held: 17

Nomination Committee
Number of meetings held: 11Compensation Committee
Number of meetings held: 9

Attendance rate (%)
Tomofumi Hiraku

17/17 (100%)

11/11 (100%)-

Takao Kato

17/17 (100%)-

9/9 (100%)

Hitoshi Inada

17/17 (100%)--

Shunichi Miyanaga

16/17 (94%)-

9/9 (100%)

Main Kohda

17/17 (100%)

11/11 (100%)

9/9 (100%)

Kenichiro Sasae

15/17 (88%)

10/11 (91%)

7/9 (78%)

Hideyuki Sakamoto

16/17 (94%)

10/11 (91%)-

Yoshihiko Nakamura

17/17 (100%)--

Joji Tagawa

17/17 (100%)-

9/9 (100%)

Takahiko Ikushima

17/17 (100%)--

Takehiko Kakiuchi

15/17 (88%)

11/11 (100%)-

Kanetsugu Mike

17/17 (100%)--

Junko Ogushi(Note)

14/14 (100%)--(Note)

Because the date of appointment as Director was June 22, 2023, the number of Board of Directors meetings to beattended in FY2023 differs from that of other Directors.

Ms. Yaeko Takeoka, who resigned from the Board of Directors on June 22, 2023, participated in three out of
three meetings of the Board of Directors for which she was to attend.
(i) Specifics of deliberations by the Board of Directors during the fiscal year under review
The Board of Directors deliberated on the Medium-term Management Plan, Annual Business
Plan, major Management Policies, Product and Technology Development Plan, Management
Policies of major overseas businesses, Policies regarding ESG, and acquisition and sale ofimportant assets.

(ii) Specifics of deliberations by the Nomination Committee during the fiscal year under review
The Nomination Committee deliberated on the determination of the agenda item for theelection of Directors to be proposed to the General Meeting of Shareholders, approval of the
proposal for the election of Executive Officers to be proposed by the Executive Officer,- 74 -

President & CEO to the Board of Directors, and on succession plans for the Executive Officer,
President & CEO.

(iii) Specifics of deliberations by the Compensation Committee during the fiscal year under review
The Committee examined and deliberated on the determination of the individual
Compensation Plan for Directors and Executive Officers, KPIs and targets for Performancelinked Compensation under the current Compensation Plan for Directors, and other matters.

- 75 -

(2) Status of corporate officers
i)Corporate officers
Male: 19; Female: 3 (women account for 13.6% of corporate officers)a. Status of Members of the Board

Title and occupation

Member of the Board

Name

Tomofumi
HirakuDate ofbirth

March 23,1956

- 76 -

History

April 1978

Joined the Ministry ofInternational Trade and Industry(MITI) (present: Ministry of
Economy, Trade and Industry(METI))

April 1993

Director, Industrial Labor
Policy Office, Industrial Policy
Bureau, MITIMay 1994

Consul, Consulate-General ofJapan at Vancouver, Canada,
Ministry of Foreign Affairs

June 1997

Director, Tariff Division,
International Economic Affairs
Department, International Trade
Policy Bureau, MITI

July 1998

Director-General, General
Coordination and Policy
Planning Department, Kansai
Bureau, MITI (present: Ministryof Economy, Trade and Industry(METI))

June 2000

Director, Planning Division,
Coal and New Energy
Department, Agency for Natural
Resources and Energy, MITI

January
2001

Director, Policy Planning
Division, Energy Conservation
and Renewable Energy
Department, Agency for Natural
Resources and Energy, METI

July 2002

Director, Economic and Fiscal
Management Bureau, Cabinet
Office, Government of Japan

September
2005

Director-General for
Manufacturing Industries
Policy, Manufacturing
Industries Bureau, METI

July 2006

Director-General for Natural
Resources and Energy Policy,
Agency for Natural Resources
and Energy, METI

July 2008

Director-General, Kansai
Bureau, METI

July 2009

Director-General,
Manufacturing Industries
Bureau, METI

October
2010

Executive Advisor, IBM Japan,
Ltd.

June 2021

Chairman of the Board, MMC(to the present)Termofoffice(Note)
2

Numberof
MMC
sharesowned(Shares)

28,260Title and occupation

Member of the Board

Member of the Board

Name

Takao Kato

Date ofbirth

February
21, 1962

June 4,
Hitoshi Inada 1957

- 77 -

History

April 1984

Joined MMC

April 2010

Senior Expert of the Russian
Assembly Business Promotion
Office, MMC

May 2010

PCMA RUS Deputy
Manufacturing Director

April 2014

Vice Plant General Manager ofNagoya Plant, MMC

April 2015

President, PT Mitsubishi Motors
Krama Yudha Indonesia

June 2019

Member of the Board,
Representative Executive
Officer, CEO, MMC

April 2021

Member of the Board,
Representative Executive
Officer, President & CEO,MMC (to the present)

April 1980

Joined Mitsubishi Corporation

April 2009

General Manager of Legal
Dept., Mitsubishi Corporation

July 2010

Senior Vice President(Compliance), Mitsubishi
International Corporation

October
2011

Vice Corporate General
Manager of Corporate Planning
Office, MMC

April 2013

Corporate Vice President, Vice
Corporate General Manager ofCorporate Planning Office,
MMC

April 2015

Corporate Vice President,
Corporate General Manager of
CSR Promotion Office, MMC

July 2016

Senior Executive Officer,
Corporate General Manager of
CSR Promotion Office, MMC

January
2017

Senior Executive Officer(Legal), Corporate General
Manager of CEO/COO Office,
MMC

October
2017

Senior Executive Officer(Corporate Governance), MMC

April 2019

Senior Vice President(Corporate Governance), MMC

June 2019

Executive Officer, Senior Vice
President (Corporate
Governance), MMC

April 2020

Senior Executive Officer(Corporate Governance), MMC

June 2022

Member of the Board, MMC (tothe present)

Number
of
Term
MMC
of
sharesofficeowned(Shares)(Note)
2(Note)
2

28,15931,472

Title and occupation

Member of the Board

Name

ShunichiMiyanaga

Date ofbirth

April 27,
1948

History

April 1972

Joined Mitsubishi Heavy
Industries, Ltd.

June 2008

Member of the Board,
Executive Vice President,
Mitsubishi Heavy Industries,
Ltd.

April 2011

Member of the Board, Senior
Executive Vice President,
Mitsubishi Heavy Industries,
Ltd.

April 2013

Member of the Board,
President, Mitsubishi Heavy
Industries, Ltd.

April 2014

Member of the Board,
President, CEO, Mitsubishi
Heavy Industries, Ltd.

June 2014

Member of the Board, MMC (tothe present)

April 2019

Chairman of the Board,
Mitsubishi Heavy Industries,
Ltd. (to the present)

June 2019

Outside Director, Mitsubishi
Corporation (to the present)

Number
of
Term
MMC
of
sharesofficeowned(Shares)(Note)
2

24,512<Important concurrent positions>
Chairman of the Board, Mitsubishi Heavy
Industries, Ltd.
Outside Director, Mitsubishi Corporation
September
1995

Started as an independent
Novelist (to the present)

January
2003

Member of Financial System
Council, Ministry of FinanceJapan

April 2004

Visiting Professor, Faculty of
Economics, Shiga University

March 2005 Member of the Council forTransport Policy, Ministry ofLand, Infrastructure, Transport
and Tourism

Member of the Board

April 25,
Main Kohda 1951

November
2006

Member of Government Tax
Commission

June 2010

Member of the Board ofGovernors, Japan Broadcasting
Corporation

June 2012

Outside Director, Japan Tobacco
Inc.

June 2013

Outside Director, LIXIL Group
Corporation

June 2016

Outside Director, Japan
Exchange Group

June 2018

Member of the Board, MMC (tothe present)

June 2024

External Director, CAPCOM
CO., LTD. (to the present)<Important concurrent positions>
Novelist
External Director, Capcom Co., Ltd.

- 78 -(Note)
2

18,005Title and occupation

Name

Date ofbirth

History

April 1974

Joined Ministry of Foreign
Affairs

April 2000

Executive Assistant to the Prime
Minister for Foreign Affairs

April 2001

Deputy Director-General,
Foreign Policy Bureau

Number
of
Term
MMC
of
sharesofficeowned(Shares)March 2002 Director-General, Economic
Affairs Bureau, Ministry ofForeign Affairs

Member of the Board

Kenichiro
Sasae

September
25, 1951

January
2005

Director-General, Asian andOceania Affairs Bureau,
Ministry of Foreign Affairs

January
2008

Senior Deputy Minister for
Foreign Affairs

August2010

Vice-Minister for Foreign
Affairs

September
2012

Ambassador Extraordinary andPlenipotentiary of Japan to theUnited States of America

June 2018

President and Director General,
The Japan Institute ofInternational Affairs

June 2019

Outside Director, SEIREN CO.,LTD. (to the present)

June 2019

Member of the Board, MMC (tothe present)

December
2020

President, The Japan Institute ofInternational Affairs (to thepresent)

June 2021

Outside Director, Fujitsu
Limited (to the present)

March 2022 Outside Director, Asahi Group
Holdings, Ltd. (to the present)<Important concurrent positions>
President, The Japan Institute of International
Affairs
Outside Director, SEIREN CO., LTD.
Outside Director, Fujitsu Limited
Outside Director, Asahi Group Holdings, Ltd.

- 79 -(Note)
2

16,089Title and occupation

Member of the Board

Name

Hideyuki
Sakamoto

Date ofbirth

April 15,
1956

History

April 1980

Joined Nissan Motor Co., Ltd.

April 2008

Corporate Officer, Nissan PV
Product Development Div.
No.1, Nissan Motor Co., Ltd.

May 2009

Corporate Officer, Alliance
Common Platform andComponents, Nissan Motor Co.,Ltd.

April 2012

Corporate Vice President,
Production Engineering Div.,
Nissan Motor Co., Ltd.

April 2014

Executive Vice President,
Product Engineering, Nissan
Motor Co., Ltd.

June 2014

Director, Executive Vice
President, Product Engineering,
Nissan Motor Co., Ltd.

January
2018

Director, Executive Vice
President, MFG & SCM
Operations, Nissan Motor Co.,Ltd.

June 2018

Chairman of the Board, Nissan
Motor Kyushu Co., Ltd. (to thepresent)

August2018

Board Member, Chairman,
AICHI MACHINE INDUSTRY
CO., LTD. (to the present)

September
2018

Chairman of the Board, JATCO
Ltd

June 2019

Member of the Board, MMC (tothe present)

June 2019

Executive Officer, Executive
Vice President, Manufacturing& SCM Operations, Nissan
Motor Co., Ltd.

February
2020

Director, Executive Officer,
Executive Vice President,
Manufacturing & SCM
Operations, Nissan Motor Co.,Ltd.

July 2023

Director, Executive Officer,
Executive Vice President,
Manufacturing & SCM, Nissan
Purchasing, Nissan Motor Co.,Ltd.

November
2023

Director, Executive Officer,
Executive Vice President,
Manufacturing & SCM,
Purchasing, Nissan Motor Co.,Ltd.

April 2024

Director, Executive Officer,
Executive Vice President, Chief
Monozukuri Officer,
Manufacturing & SCM,
Purchasing, AFL, Nissan MotorCo., Ltd. (to the present)<Important concurrent positions>- 80 -

Number
of
Term
MMC
of
sharesofficeowned(Shares)(Note)
2

16,089Title and occupation

Name

Date ofbirth

History

Director, Executive Officer, Executive Vice
President, Nissan Motor Co., Ltd.
Chairman of the Board, Nissan Motor Kyushu
Co., Ltd.
Board Member, Chairman, AICHI MACHINE
INDUSTRY CO., LTD.

- 81 -

Number
of
Term
MMC
of
sharesofficeowned(Shares)Title and occupation

Member of the Board

Name

Yoshihiko
Nakamura

Date ofbirth

November28, 1956

History

November
1979

Joined Peat Marwick Mitchell &Company (present: KPMG
AZSA LLC)

March
1983

Registered as certified public
accountant

October
1994

Partner (Representative), Minato
Audit Corp. (present: KPMG
AZSA LLC)

October
2003

Partner, KPMG AZSA LLC

June 2019

Substitute Auditor, Seika
Corporation

July 2019

Started CPA Yoshihiko(Note)
12,999Nakamura Accounting Office (to2the present)

June 2020

Member of the Board, MMC (tothe present)

June 2020

Auditor, Seika Corporation

June 2022

Outside Director (Audit &Supervisory Committee
member), Seika Corporation (tothe present)<Important concurrent positions>
CPA Yoshihiko Nakamura Accounting OfficeOutside Director (Audit & Supervisory
Committee member), Seika Corporation- 82 -

Number
of
Term
MMC
of
sharesofficeowned(Shares)Title and occupation

Member of the Board

Name

Joji Tagawa

Date ofbirth

History

April 1983

Joined Nissan Motor Co., Ltd.

April 2006

Corporate Officer, Treasury
Department and Investor
Relations Department, Nissan
Motor Co., Ltd.

April 2010

Corporate Officer, Investor
Relations Department and M&A
Support Department, Nissan
Motor Co., Ltd.

April 2014

Corporate Vice President,
Investor Relations and M&A
Support Department, Nissan
Motor Co., Ltd.

April 2019

Corporate Vice President,
Investor Relations, Nissan
Motor Co., Ltd.

December
2019

Senior Vice President, Chief
Sustainability Officer, Board of
Directors Office, Corporate
Management Office, Corporate
Service, Environment/CSR,
Global External & Government
Affairs, IP promotion and
Investor Relations Department,
Nissan Motor Co., Ltd.

April 2020

Senior Vice President, Chief
Sustainability Officer, Corporate
Service, Environment/CSR,
Global External & Government(Note)
Affairs, IP promotion, and12,9992
Investor Relations Department,
Nissan Motor Co., Ltd.

April 2020

Outside Director, Renault SA (tothe present)

June 2020

Member of the Board, MMC (tothe present)

June 2021

Senior Vice President, Chief
Sustainability Officer,
Compliance, Corporate Service,
Crisis Management andSecurity,
Environment/Sustainability,
External & Government Affairs,
IP Customer Business
Development, Nissan MotorCo., Ltd.

April 2024

Senior Vice President, Chief
Sustainability Officer, Corporate
Service, Crisis Management andSecurity,
Environment/Sustainability,
External & Government Affairs,
IP Customer Business
Development, Nissan MotorCo., Ltd. (to the present)

July 12,1960<Important concurrent positions>
Senior Vice President, Nissan Motor Co., Ltd.
Outside Director, Renault SA- 83 -

Number
of
Term
MMC
of
sharesofficeowned(Shares)Title and occupation

Member of the Board

Name

Takahiko
Ikushima

Date ofbirth

History

April 1990

Joined Nissan Motor Co., Ltd.

November
2019

Division General Manager,
Budget and Accounting
Department, Global Revenue
and Regional Financial
Management Group, General
Manager, MC-Controller, LCVBU, Nissan Motor Co., Ltd.

December
2019

Corporate Vice President,
Global Controller, Accounting,Nissan Motor Co., Ltd.

January 13, June 2020
1967

Member of the Board, MMC (tothe present)

August2021

Corporate Vice president, Global
Controller, Region’s
Performance Optimization,
Nissan Motor Co., Ltd.

April 2024

Senior Vice President, Global
Controller, Regions’
Performance Control, Nissan
Motor Co., Ltd. (to the present)

Number
of
Term
MMC
of
sharesofficeowned(Shares)(Note)
2

12,999<Important concurrent positions>
Senior Vice President, Nissan Motor Co., Ltd.

Member of the Board

Takehiko
KakiuchiJuly 31,
1955

April 1979

Joined Mitsubishi Corporation

April 2010

Senior Vice President, Division
COO, Foods (Commodity) Div.,
Mitsubishi Corporation

April 2011

Senior Vice President, General
Manager, Living Essential
Group CEO Office,(Concurrently) Division COO,
Foods (Commodity) Div.,
Mitsubishi Corporation

April 2013

Executive Vice President,Group CEO, Living Essentials
Group, Mitsubishi Corporation

April 2016

President and CEO, Mitsubishi
Corporation

June 2016

Member of the Board, President
and CEO, Mitsubishi
Corporation

April 2022

Chairman of the Board,
Mitsubishi Corporation (to thepresent)

June 2022

Member of the Board, MMC (tothe present)<Important concurrent positions>
Chairman of the Board, Mitsubishi
Corporation- 84 -(Note)
2

4,574

Title and occupation

Member of the Board

Name

Kanetsugu
Mike

Date ofbirth

November4, 1956

History

April 1979

Joined The Mitsubishi Bank,
Ltd.

June 2005

Executive Officer, The Bank ofTokyo-Mitsubishi, Ltd.
Executive Officer, Mitsubishi
Tokyo Financial Group, Inc.

May 2009

Managing Executive Officer,
The Bank of Tokyo-Mitsubishi
UFJ, Ltd. (“BTMU”)

May 2011

Managing Officer, Mitsubishi
UFJ Financial Group, Inc.
(“MUFG”)

June 2011

Member of the Board of
Directors, Managing Executive
Officer, BTMUMay 2013

Senior Managing Executive
Officer, BTMU

October
2015

Executive Chairman of MUFG
Americas Holdings Corporation
Executive Chairman of MUFG
Union Bank, N.A.

May 2016

Deputy President, BTMUMay 2016

Senior Managing Corporate
Executive, MUFG

June 2016

Member of the Board of
Directors, Deputy President,
BTMU

June 2017

President & CEO, BTMU
Member of the Board of
Directors, Deputy Chairman,
MUFG

April 2019

Member of the Board of
Directors, President & Group
CEO, MUFG

April 2020

Member of the Board of
Directors, Deputy Chairman,
MUFG

April 2021

Member of the Board of
Directors, Chairman, MUFG (tothe present)

June 2022

Member of the Board, MMC (tothe present)

June 2022

Outside Director, Tokio Marine& Nichido Fire Insurance Co.,
Ltd. (to the present)

April 2023

Vice Chairperson, KEIZAIDOYUKAI (Japan Associationof Corporate Executives) (to thepresent)

June 2023

Outside Statutory Auditor,
Tokyo Kaikan Co., Ltd. (to thepresent)<Important concurrent positions>
Member of the Board of Directors, Chairman,
MUFG
Outside Director, Tokio Marine & Nichido
Fire Insurance Co., Ltd.
Vice Chairperson, KEIZAI DOYUKAI (Japan
Association of Corporate Executives)
Outside Statutory Auditor, Tokyo Kaikan Co.,Ltd.

- 85 -

Number
of
Term
MMC
of
sharesofficeowned(Shares)(Note)
2–

Title and Occupation

Member of the Board

Name

Junko
Ogushi

Date of birthAugust 23,
1960

History

April 1984

Corporate work experience(banks, trading companies)

April 1998

Registered as an attorney atlaw (Member of Tokyo Bar
Association)

April 1998

Joined Hibiya Joint Law
OfficeJanuary 2000

Joined Atsumi & Usui(present: Atsumi & Sakai)

January 2003

Partner, Atsumi & Usui

January 2006

Senior Partner, Atsumi & Usui(to the present)

October 2006

Executive Secretary,
Legislative Council of the
Ministry of Justice (Insurance
Law Subcommittee)

December 2017

Registered as an attorney atlaw in the State of California

October 2020

Auditor, Tokyo Metropolitan
Industrial Technology
Research Institute (to thepresent)

June 2021

Outside Director, Hibiya
Engineering, Ltd. (to thepresent)

June 2023

Member of the Board, MMC(to the present)TermofofficeNumberof
MMC
sharesowned(Shares)(Note)
2

2,209<Important concurrent positions>
Senior Partner, Attorney at Law, Atsumi & Sakai
Auditor, Tokyo Metropolitan Industrial Technology
Research InstituteOutside Director, Hibiya Engineering, Ltd.

Total

208,366(Notes) 1. Members of the Board, Mr. Tomofumi Hiraku, Mr. Shunichi Miyanaga, Ms. Main Kohda, Mr. Kenichiro Sasae,
Mr. Hideyuki Sakamoto, Mr. Yoshihiko Nakamura, Mr. Joji Tagawa, Mr. Takahiko Ikushima, Mr. Takehiko
Kakiuchi, Mr. Kanetsugu Mike, and Ms. Junko Ogushi are Outside Directors.
2. From the conclusion of the MMC’s Ordinary General Meeting of Shareholders held on June 20, 2024 to theconclusion of the Ordinary General Meeting of Shareholders for the fiscal year ending March 31, 2025.
3. MMC is a company with three committees. The structure of each committee is as follows:
Nomination Committee
Chairperson: Main Kohda
Member: Kenichiro Sasae, Hideyuki Sakamoto,
Tomofumi Hiraku, and Takehiko
KakiuchiCompensation Committee Chairperson: Shunichi Miyanaga Member: Main Kohda, Kenichiro Sasae, Joji
Tagawa, and Takao Kato
Audit Committee
Chairperson: YoshihikoMember: Takahiko Ikushima, Kanetsugu Mike,
Nakamura
Junko Ogushi, and Hitoshi Inada- 86 -

b. Status of Executive Officers
Title and occupation

Name

Date of birthMember of the Board,
Representative Executive
Officer, President & CEO

Takao Kato

February 21,
1962

Representative Executive
Officer, Executive Vice
President (Sales)

Representative Executive
Officer, Executive Vice
President (CFO)

TatsuoNakamura

KentaroMatsuoka

History

See a. Status of Members of the Board
April 1986

Joined Mitsubishi Corporation

January 2005

Member of the Board (Planning),
Krama Yudha Tiga Berlian Motors(Jakarta)

February
2010

Unit Manager of ASEAN &Southwest Asia Automotive Unit,
Mitsubishi Corporation

June 2013

Vice Corporate General Manager of
ASIA & ASEAN Office, MMC

December
2016

Corporate Vice President, Corporate
General Manager of ASEAN Office,
MMC

July 27, 1962 December
2016

September
25, 1963

Senior Vice President, Corporate
General Manager of Strategy
Planning Office, Automotive
Business Div., Mitsubishi
Corporation

April 2018

Senior Vice President, Division COO
of Automotive Business Div.,
Mitsubishi Corporation

April 2022

Senior Executive Officer, Assistant to
Executive Vice President (Sales
Strategy/Reformation), MMC

April 2023

Representative Executive Officer,
Executive Vice President (Sales),MMC (to the present)

April 1987

Joined The Mitsubishi Bank, Ltd.

June 2015

Executive Officer and General
Manager of Corporate Banking
Credit Division, The Bank of TokyoMitsubishi UFJ, Ltd.

May 2018

Managing Executive Officer incharge of Corporate Banking Credit
Division, Credit Division and
Investment Banking Credit Division,
MUFG Bank, Ltd.

April 2021

Senior Managing Executive Officer
in charge of Corporate Banking
Credit Division, Credit Division,
Structured Finance Credit Office andCredit Policy & Planning Division(credit planning), MUFG Bank, Ltd.

June 2022

Member of the Board of Directors,
Senior Managing Executive Officer,
stationed in Western Japan, MUFG
Bank, Ltd.

June 2023

Advisor, MMC

July 2023

Representative Executive Officer,
Executive Vice President (CFO),
MMC (to the present)- 87 -

Termofoffice(Note)
1(Note)
1(Note)
1

Number of
MMC
sharesowned(Shares)

28,159

8,762

2,209

Title and occupation

Representative Executive
Officer, Executive Vice
President(Engineering/TCS/Design)

Senior Executive Officer(Product Strategy), andDivision General Manager,
Product Strategy Div.

Name

Takeshi
Yamaguchi

Date of birth

December 5,
1965

January 10,
Koichi Namiki 1962

History
April 1988

Joined Nissan Motor Co., Ltd

April 2017

SVP, R&D Americas (NA &LATAM), Nissan North America Inc.

April 2019

Corporate vice president, Customer
Performance & CAE / Test
Engineering, Alliance Global VP,
Nissan Motor Co., Ltd.

May 2021

Corporate vice president, Nissan
Motor Co., Ltd.
Vice president, Dongfeng Motor Co.,
Ltd. (DFL)Managing director, Dongfeng Nissan
Passenger Vehicle Company (DFN)

April 2024

Representative Executive Officer,
Executive Vice President(Engineering/TCS/Design), MMC (tothe present)

April 1984

Joined OBIC Co., Ltd.

August 1986

Joined MMC

April 2000

Group Manager, Engine Designing
Department, MMC

March 2003

Strategic Project Leader, New
Product Project, MMC

July 2004

Senior Expert, Engine Designing
Department, MMC

December
2009

General Manager, Alliance Planningand Promotion Office, MMC

June 2011

Corporate General Manager, ProductStrategy Div., MMC

April 2012

Product Executive, PX (RV), MMC

October 2013 Corporate General Manager, Global
Pick-up Truck Business Promotion
Div., MMC
January 2017

Program Director, PD (FRAME),
MMC

April 2020

Executive Officer, Division General
Manager, Product Strategy Div.,
MMC

April 2021

Executive Officer (Product Strategy),
and Division General Manager,
Product Strategy Div., MMC

April 2024

Senior Executive Officer (ProductStrategy), and Division General
Manager, Product Strategy Div.,MMC (to the present)- 88 -

Termofoffice(Note)
1(Note)
1

Number of
MMC
sharesowned(Shares)

434

15,709Title and occupation

Name

Date of birth

History
April 1986

Joined MMC

April 2002

Expert of Chassis Design Dept.,
MMC

Term
of
officeNumber of
MMC
sharesowned(Shares)

October 2007 Manager of Material Parts
Procurement Office, MMC

Executive Officer(Procurement)

January 14,
Tomoo Yoshida 1962

April 2009

General Manager of Parts
Procurement Office, MMC

September
2013

Vice Corporate General Manager ofProcurement Office, MMC

April 2016

Corporate General Manager ofProcurement Management Office,
MMC

April 2019

Corporate Vice President, Corporate
General Manager of Procurement
Management Office, MMC

April 2021

Corporate Vice President, Corporate
General Manager of Procurement
Communication Office, MMC

April 2022

Executive Officer (Procurement),
MMC (to the present)- 89 -(Note)
1

18,365Title and occupation

Name

Date of birth

History
April 1985

Joined the Ministry of International
Trade and Industry (MITI)

July 1997

Transferred to National Police
Agency, Director of Police
Administration Department, Ehime
Prefectural Police Headquarters(Assistant Commissioner)

December
2000

Corporate General Manager ofIndustrial Property Legislation
Revision Deliberation Office, Policy
Planning and Coordination
Department, Japan Patent Office

July 2002

Director, Culture and IT Industry
Division, Commerce and Information
Policy Bureau, METI

February
2006

Director, Gas Market Office,Electricity and Gas Industry
Department, Agency for Natural
Resources and Energy

July 2008

Director, General Coordination
Division, Policy Planning and
Coordination Department, Japan
Patent Office

Executive Officer(Internal Control/Corporate
Affairs)
November 7, July 2011
Ikuro Hirozane
1961
and Division General
Manager, Corporate Affairs
Division
April 2012

Director, Trade Control Policy
Division, Trade Control Department,
Trade and Economic Cooperation
Bureau, METI
Director-General, Kyushu Bureau of
Economy, Trade and Industry

July 2014

Senior Managing Executive Officer,
Development Bank of Japan Inc.

January 2019

Joined MMC
Assistant to Corporate General
Manager of Corporate Affairs Div.,
MMC

April 2020

Corporate General Manager ofCorporate Affairs Div., MMC

April 2022

Executive Officer (Internal
Control/Corporate Affairs), Division
General Manager, Corporate Affairs
Division at General Administration,
Communication, Sustainability
Division (External &Government
Relations), MMC

April 2023

Executive Officer (Internal
Control/Corporate Affairs) Division
General Manager, Corporate Affairs
Division, MMC (to the present)- 90 -

Termofoffice(Note)
1

Number of
MMC
sharesowned(Shares)

7,062

Title and occupation

Executive Officer(Corporate Strategy
Management)

NameYoichiYokozawa

Date of birth

April 24,
1964

HistoryTermofofficeApril 1989

Joined Showa Ota & Co.

July 1993

Joined Moret Ernst & Young(Netherlands)

August 1998

Head of the Presidential
Administration Office, Mitsubishi
Motors Europe B.V.

January 2000

Planning Department, Corporate
Planning Office, MMC

April 2000

Assistant to President, MMC

June 2002

Senior Executive Officer, Corporate
Vice President, Division General
Manager, M&A Asset Management,
MMC

June 2003

Senior Executive Officer(Responsible for Financial), MMC

June 2004

Executive Officer, Assistant to CFO,
MMC

April 2005

Executive Officer, Vice Corporate
General Manager of Controlling &Accounting Office and Vice
Corporate General Manager ofCorporate Planning Office, MMC

April 2006

Executive Officer, Corporate General
Manager of Overseas Business
Management Office, MMC

May 2010(Note)
Executive Officer, MMC
1
Member of the Board, Vice President,
Mitsubishi Motors North America,
Inc.

April 2011

Executive Officer, MMC
Member of the Board, President,
Mitsubishi Motors North America,
Inc.

March 2014

Executive Officer, Vice Corporate
General Manager of Corporate
Planning Office, MMC

June 2016

Senior Executive Officer, Division
General Manager, Corporate Strategy
Management Div., MMC

September
2018

Managing Director, NissanMitsubishi B.V.

June 2019

Senior Executive Officer, Division
General Manager, Europe Div.,
MMC.

June 2020

Member of the Board, President,
Mitsubishi Motors North America,
Inc.

April 2022

Corporate Officer, Division General
Manager, North Asia Division, MMC

April 2023

Executive Officer (Corporate
Strategy Management), MMC (to thepresent)- 91 -

Number of
MMC
sharesowned(Shares)

29,585Title and occupation

Name

Date of birth

History
April 1987

Joined Nippon Steel Corporation(present: NIPPON STEELCORPORATION)

December
2009

Joined Soga, URYU & ITOGA

Termof
officeNumber of
MMC
sharesowned(Shares)

October 2010 Joined Kojima Law Offices

Executive Officer(Legal & Corporate
Governance)
and Division General
Manager, Legal &Corporate Governance Div.

Executive Officer(Production)

YasukoTakazawa

Yasuhisa
Yamamoto

November
20, 1964

July 29, 1963

September
2014

Joined MMC

March 2015

General Manager, Legal Department,
Corporate Planning Office, MMC

April 2019

Corporate Vice President
General Manager, Legal Dept., MMC

January 2020

Corporate Officer, Assistant to Senior
Executive Officer, General Manager,
Legal Department, MMC

April 2022

Corporate Officer, Division General
Manager, Legal & Corporate
Governance Div., MMC

June 2022

Outside Audit & Supervisory Board
Member, Nomura Research Institute,Ltd. (to the present)

April 2024

Executive Officer (Legal &Corporate Governance) and Division
General Manager, Legal & Corporate
Governance Div., MMC (to thepresent)

April 1986

Joined MMC

September
2006

Expert, Production Project of RV1,
Production Engineering Div., MMC

April 2011

General Manager, Production Dept.,
Nagoya Plant, MMC

April 2017

Chief Expert, Production Engineering
Div., MMC
(Note)

April 2018

Executive Vice President and LCB
Control, Mitsubishi Motors(Thailand) Co., Ltd.

April 2021

Division General Manager,
Production Engineering Div., MMC

April 2024

Executive Officer (Production) (tothe present)

Total(Note)

1. From April 1, 2024 to March 31, 2025.

- 92 -(Note)
1

1

17,389434

128,108

ii)

Status of Outside Directors
With their broad viewpoint based on their experience, MMC expects Outside Directors tosupervise its management. MMC appoints individuals only after careful consideration as towhether their character is suited to such a role, and whether they possess sufficient insight,
experience and expertise. They are appointed only if MMC comes to the conclusion that they
are competent in this regard.
The Company’s Independence Standards and Qualification for Outside Directors are as follows.
(Independence Standards and Qualification for Outside Directors)
The Outside Directors of the Company shall not be any of the following and shall be in aneutral position independent from the Company’s management.
1. An executive of a major shareholder(*1) of the Company
2. An executive of a major business partner(*2) of the Company, or of a company for which
the Company is a major business partner, or the parent company or subsidiary of such a
company
3. An executive of a major lender(*3) to the Company or the parent company or subsidiary ofsuch a company
4. A person affiliated with an auditing firm that conducts statutory audits of the Company
5. A consultant, an accounting professional such as a certified public accountant, or a legal
professional such as an attorney-at-law who receives a large amount(*4) of monetaryconsideration or other property other than compensation of corporate officers from theCompany (in the event such property is received by a corporation, association or othergroup, then any person belonging to such group)
6. An executive of a company with which the Company shares a corporate officer
7. An executive of an organization that is receiving a large(*4) donation or grant from theCompany
8. A person to whom any of 1 through 7 has applied during the past 3 years
9. A person with a close relative (second degree of kinship) to whom any of 1 through 7
applies
10. A person whose total period in office as an Outside Director exceeds 8 years
11. Other persons for whom the possibility of a relationship with the Company appears
strong under substantive and comprehensive consideration of the situation*1 a major shareholder: a shareholder who owns a 10% or greater share of voting rights*2 a major business partner: a major client of the Company with annual transactions valued
at 2% or more of the Company’s consolidated net sales in the most recent fiscal year, ora major supplier to the Company with annual transactions valued at 2% or more of the
supplier’s consolidated net sales in the most recent fiscal year
*3 a major lender: a financial institution that provides the Company with loans amounting
to 2% or more of the Company’s consolidated total assets at the end of the most recent
fiscal year
*4 large amount: an amount of consideration received from the Company that is 10 million
yen or more per year
As of the filing date, MMC has 11 Outside Directors, and MMC has no special interest
relationship with any of the Outside Directors.
Outside Director Tomofumi Hiraku has extensive experience, knowledge and personal
networks across industries at large, having held important posts such as Director-General,
Kansai Bureau and Director-General, Manufacturing Industries Bureau at the Ministry of
Economy, Trade and Industry, as well as having been involved in energy policy planning at the- 93 -

Agency for Natural Resources and Energy. As such, MMC has appointed him as an Outside
Director with the expectation that with these qualities, he will be able to actively supervise the
MMC’s management and offer advice and recommendations to MMC. Moreover, MMC
recognizes that there is no risk of a conflict of interest arising between Mr. Hiraku and MMC’s
general shareholders, and considers him to be sufficiently independent. MMC has therefore
appointed him as an Independent Director.
Outside Director Shunichi Miyanaga serves concurrently as Chairman of the Board of
Mitsubishi Heavy Industries, Ltd., which conducts transactions with MMC related to sales ofautomobiles and so forth. He also serves concurrently as Outside Director of Mitsubishi
Corporation, which is a major shareholder and a major business partner of MMC that conducts
transactions with MMC related to overseas sales of automobiles and so forth. In light of thefact that he has served as a business executive of Mitsubishi Heavy Industries, Ltd. and thecurrent relationship between MMC and Mitsubishi Heavy Industries, Ltd., he has not been
appointed as an Independent Director. However, he has considerable experience, achievements
and deep insight nurtured through his long-standing career in corporate management at a
manufacturing company that operates worldwide, and as such, MMC has appointed him as an
Outside Director with the expectation that with these qualities, he will be able to actively
supervise the MMC’s management and offer advice and recommendations to MMC.
Outside Director Main Kohda has keen acumen and an objective perspective as a writer in
addition to deep insight about international finance as well as considerable knowledge andexperience gained as a Member of the Council of the Ministry of Finance and the Ministry ofLand, Infrastructure, Transport and Tourism. As such, MMC has appointed her as an Outside
Director with the expectation that with these qualities, she will be able to actively supervise
the MMC’s management and offer advice and recommendations to MMC. Moreover, MMC
recognizes that there is no risk of a conflict of interest arising between Ms. Kohda and MMC’s
general shareholders, and considers her to be sufficiently independent. MMC has therefore
appointed her as an Independent Director.
Outside Director Kenichiro Sasae has a broad international understanding as a diplomat andconsiderable insight and experience, holding important posts at the Ministry of Foreign Affairs.
As such, MMC has appointed him as an Outside Director with the expectation that with thesequalities, he will be able to actively supervise the MMC’s management and offer advice andrecommendations to MMC. Mr. Sasae had entered an advisory contract with MMC which
terminated in May 2019. However, since the amount of fees under the advisory contract is lessthan the amount stipulated by the MMC’s Independence Standards and Qualification for
Outside Directors described above, it does not affect Mr. Sasae’s independence, and MMC
recognizes that there is no risk of a conflict of interest arising between Mr. Sasae and MMC’s
general shareholders, and considers him to be sufficiently independent. Therefore, he has been
appointed as an Independent Director.
Outside Director Hideyuki Sakamoto serves concurrently as Director, Executive Officer,
Executive Vice President of Nissan Motor Co., Ltd., which is a major shareholder and a major
business partner of MMC that conducts transactions with MMC related to OEM supply of
automobiles, parts purchasing and so forth. Since Mr. Sakamoto has served as a businessexecutive of Nissan Motor Co., Ltd., he has not been appointed as an Independent Director.
However, Mr. Sakamoto has considerable insight and experience gained as a member of the
management team of an automobile manufacturer that operates worldwide. As such, MMC has
appointed him as an Outside Director with the expectation that with these qualities, he will beable to actively supervise the MMC’s management and offer advice and recommendations to
MMC.
Outside Director Yoshihiko Nakamura has worked for many years as a certified public
accountant and has considerable knowledge as a specialist in accounting auditing. As such,
MMC has appointed him as an Outside Director with the expectation that with these qualities,
he will be able to actively supervise the MMC’s management and offer advice andrecommendations to MMC. Moreover, MMC recognizes that there is no risk of a conflict ofinterest arising between Mr. Nakamura and MMC’s general shareholders, and considers him
to be sufficiently independent. MMC has therefore appointed him as an Independent Director.
- 94 -

Outside Director Joji Tagawa serves concurrently as Senior Vice President of Nissan MotorCo., Ltd., which is a major shareholder and a major business partner of MMC as describedabove. Since Mr. Tagawa has served as a business executive of Nissan Motor Co., Ltd., he has
not been appointed as an Independent Director. However, Mr. Tagawa has considerable insightand experience gained as a member of the management team of an automobile manufacturer
that operates worldwide, and as such, MMC has appointed him as an Outside Director with the
expectation that with these qualities, he will be able to actively supervise the MMC’s
management and offer advice and recommendations to MMC.
Outside Director Takahiko Ikushima serves concurrently as Senior Vice President of Nissan
Motor Co., Ltd., which is a major shareholder and a major business partner of MMC as
described above. Since Mr. Ikushima has served as a business executive of Nissan Motor Co.,
Ltd., he has not been appointed as an Independent Director. However, Mr. Ikushima has
considerable insight and experience gained at an automobile manufacturer that operates
worldwide, and as such, MMC has appointed him as an Outside Director with the expectationthat with these qualities, he will be able to actively supervise the MMC’s management andoffer advice and recommendations to MMC.
Outside Director Takehiko Kakiuchi serves concurrently as Chairman of the Board of
Mitsubishi Corporation, which is a major shareholder and a major business partner of MMC
as described above. Mr. Kakiuchi has served in the past as a business executive of Mitsubishi
Corporation, which is a major shareholder and a business partner of MMC; therefore, he has
not been appointed as an Independent Director. However, he has considerable experience,achievements, and deep insights into global business management accumulated through his
career as a corporate manager at a general trading company that operates worldwide; and, assuch, MMC has appointed him as an Outside Director with the expectation that with thesequalities, he will be able to actively supervise MMC’s management and offer advice andrecommendations to MMC.
Outside Director Kanetsugu Mike serves concurrently as a Member of the Board of Directors
and Chairman of Mitsubishi UFJ Financial Group, Inc., a subsidiary of which, MUFG Bank,
Ltd., conducts banking transactions with MMC and so forth. Mr. Mike served in the past as abusiness executive of MUFG Bank, Ltd., and in the light of the current relationship between
MMC and MUFG Bank, Ltd., he has not been appointed as an Independent Director. However,
Mr. Mike has considerable experience and deep insights gained as a corporate manager atinternational financial institutions. As such, MMC has appointed him as an Outside Director
with the expectation that with these qualities, he will be able to actively supervise MMC’s
management and offer advice and recommendations to MMC.
Outside Director Junko Ogushi has been active as an attorney-at-law for many years and iselected because she is expected to proactively supervise the Company’s management andprovide advice and recommendations based on her extensive expertise and high-level insight
as a legal specialist. Ms. Ogushi has been elected as an Independent Director, because no riskof a conflict of interest with general shareholders of the Company is recognized, and she has
sufficient independence.
iii) Supervision, audits and internal audits by Outside Directors, audits by Audit Committee,
cooperation with accounting audits, and relationship with the internal control office
The Outside Directors receive reports at the Board of Directors meetings regarding the progressof internal controls, including compliance, as well as the results of audits by the Audit
Committee and accounting audits.
At the Audit Committee meetings and other occasions, the Outside Members of the Audit
Committee receive reports on audit results from the internal audit division and the Accounting
Auditors for each quarterly financial report, as well as receiving reports on individual mattersregarding compliance and so forth, and they offer appropriate opinions.

- 95 -

(3) Status of auditsi) Status of audits by Audit Committee
1) Structure of audits by Audit Committee
The Audit Committee consists of five members: four Outside Directors and one Internal
Director, of which, Chairperson Yoshihiko Nakamura and one other member are Outside
Directors who satisfy the Company’s Independence Standards and Qualification. Backgroundand experience of each of the Members of the Audit Committee are as follows:
Name
Yoshihiko Nakamura(Chairperson of the Audit
Committee and Independent
Outside Director)
Takahiko Ikushima(Outside Director)

Kanetsugu Mike
(Outside Director)
Junko Ogushi(Independent Outside Director)
Hitoshi Inada(Full-time Member of the Audit
Committee)

Background and experience
He has worked for many years as a certified public
accountant and has abundant specialist knowledge andinsight as an expert in accounting audits.
He has abundant insight and experience gained at an
automobile manufacturer that operates worldwide, andconsiderable insight concerning finance andaccounting.
He has considerable insight concerning compliance,
finance and accounting based on his extensive work
experience in governance at financial institutions.
She has extensive experience in the legal sector with ahigh level of knowledge on laws and compliance as an
attorney at law.
He has a track record in legal affairs, compliance, andcorporate governance over many years, extensive
experience, and considerable insight.

In addition, the Audit Committee Office was established as an organization to assist the Audit
Committee in executing their duties. As of the end of March 2024, dedicated personnel withappropriate knowledge, skills and experience were appointed to assist the Audit Committee in
executing their duties.
2) Status of activities by the Audit Committee and its members
Based on its audit policies and audit plans, the Audit Committee of MMC, collects information
by holding its meeting once a month in principle, having meetings with internal audit divisions,and interviewing Executive Officers and Corporate Officers, and performs systematic audits.
Such information includes the status of the development and maintenance of the internal control
systems (including internal controls over financial reporting) at MMC and its major affiliateddomestic and overseas companies, the progress and implementation status of complianceactivities, the validation of risk assessment, and the risk management system.
In the Audit Committee during the fiscal year under review, there were 14 resolutions approved,
6 matters discussed, and 51 reports made in total concerning the audit policies and audit plans;
audit methods; resolutions on the assignment of audit duties; the status of the improvement andmaintenance of the internal control systems; audit plans made, audit methods used, and thesuitability of the results of audits performed by the Accounting Auditors; communications inrelation to Key Audit Matters (KAM); and the reports on the status of duties executed by the
Full-time Member of the Audit Committee. The Audit Committee conducted exchanges of- 96 -

opinions with Accounting Auditors a total of 7 times when selecting Key Audit Matters (KAM)
during the fiscal year under review.
Attendance of each Member of the Audit Committee at the Audit Committee during the fiscal
year under review is as follows:
Name
Yoshihiko Nakamura
Takahiko Ikushima

Attendance at Audit Committee
Audit Committee: 15/15
Audit Committee: 15/15

Attendance Rate (%)
100%
100%

Kanetsugu Mike

Audit Committee: 15/15

100%

Junko Ogushi (Note)

Audit Committee: 12/12

100%

Hitoshi Inada

Audit Committee: 15/15

100%(Note) Because the day Ms. Junko Ogushi took office as a Committee member was June 22,2023, the number of committee meetings attended in FY2023 differs from that of othermembers.
Ms. Yaeko Takeoka, who resigned as Member of the Audit Committee on June 22,2023, participated in three out of three meetings of the Audit Committee for which she
was to attend.
In addition to the meetings above, based on its audit policies and audit plans, the Audit
Committee held 6 meetings (approximately 90 minutes per meeting) with the internal audit
divisions during the year, performed audits, and collected information on the operating status
of internal controls through the divisions. The Audit Committee also interviewed Executive
Officers and others 10 times during the year (approximately 90 minutes per interview) to
confirm how the MMC group’s major subsidiaries and affiliates in Japan and overseas as well
as divisions address issues on the development and operation of the internal control system,compliance, risk management, etc.
In addition to the meetings above, full-time Members of the Audit Committee attended
important meetings including meetings of Executive Committee; inspected important
approval/decision documents; interviewed Executive Officers and Corporate Officers; visitedand audited, or conducted hearings with MMC’s major business locations and its major
subsidiaries and affiliates in Japan and overseas; provided training for and had liaison meetings
with auditors of subsidiaries and affiliates in Japan; and held three-officer audit meetings (Audit
Committee, Accounting Auditors and internal audit divisions). The status of duties executed byfull-time Members of the Audit Committee is reported in the meeting of the Audit Committee.
The status of activities carried out by the Audit Committee is reported to the Board of Directors
twice a year. The Audit Committee also exchanges opinions with Executive Officer, President
to communicate its findings every year.
ii) Status of internal audits
MMC has established the Internal Audit Dept. and the Quality Audit Dept. as internal audit
departments within the Internal Audit Div., an independent organization that reports directly to
Executive Officer, President. These departments conduct planned internal audits based on theannual audit plan.
The Audit Division is staffed with 24 personnel as of March 31, 2024, including professionals
with diverse management experience, certified internal auditors, internal auditors, and otherqualifications.
The Internal Audit Dept. (15 members) conducts internal audits to determine whether operational
management of MMC and subsidiaries and affiliates in Japan and overseas is being conductedwith transparency using appropriate processes. The Quality Audit Dept. (7 members) audits the- 97 -

appropriateness of product quality-related activities by MMC and subsidiaries and affiliates inJapan and overseas.
The results of internal audits conducted by the Audit Division are reported to Executive Officer,
President and to the Audit Committee.
As described in i) 2) above, in addition to meetings with the Audit Committee 6 times a year,
regular meetings with the full-time Audit Committee members are held once a month forcollaboration, and information is also exchanged at three-officer audit meetings with the full-time
Audit Committee members and the accounting auditor.
iii) Status of accounting audit
a. Name of audit firm
Ernst & Young ShinNihon LLC
b. Continuous audit period
39 yearsc. Names of CPAs
Designated and Engagement Partner, Hirohisa Fukuda, Takeshi Saida, Taichi Muto
d. Organization of assistants relating to the audit work
CPAs 15, Others 43
e. Selection policy for audit firm
If it is deemed that any of the items prescribed in Article 340, paragraph (1) of the Companies
Act apply to the Accounting Auditors, the Audit Committee shall dismiss the Accounting
Auditors based on the agreement of all the Members of the Audit Committee.
Moreover, If the Audit Committee judges that it is necessary to dismiss or not reappoint the
Accounting Auditors due to an impediment in the Accounting Auditors’ execution of theirduties or other such reason, the Audit Committee shall make a proposal on this dismissal or
non-reappointment to the General Meeting of Shareholders.
Decisions on selecting Accounting Auditors are made taking into account evaluation results
reached on the basis of the above policy and the Accounting Auditor Assessment Standards
established by the Audit Committee.
f. Valuation of accounting audit by Audit Committee
Based on the Accounting Auditor Assessment Standards, the Audit Committee conducts
evaluations every year regarding the status of quality controls of the audit firm, suitability ofaudit teams, appropriateness of matters such as compensation for audits, effectiveness ofcommunication with the Audit Committee, effectiveness of communication with management
and others, appropriateness of MMC group audits, appropriate assessment of fraud risk, andexamination of Accounting Auditors’ qualifications.
iv) Details of compensation for the audita.

Compensation for certified public accountants who conduct auditing, etc.
Previous fiscal year

Fiscal year under review

Compensation foraudit attestation(Millions of yen)Compensation for
non-audit work
(Millions of yen)Compensation foraudit attestation(Millions of yen)Compensation for
non-audit work
(Millions of yen)

MMC

304

1

329

–

Consolidated subsidiary

81

–

83

–

Total

385

1

413

–

Classification- 98 -

The details of non-audit work for MMC in the previous fiscal year consist of fact-verification
duties, etc. concerning the English translation of Financial Statements and other materials.
b.

Compensation for the same network (Ernst & Young) as the MMC’s auditing certified public
accountants who conduct auditing, etc. (except a.)Previous fiscal year

Fiscal year under review

Compensation foraudit attestation(Millions of yen)Compensation for
non-audit work
(Millions of yen)Compensation foraudit attestation(Millions of yen)Compensation for
non-audit work
(Millions of yen)

–

49

–

–

Consolidated subsidiary

407

27

435

5

Total

407

76

435

5

Classification

MMC

The details of non-audit work for MMC in the previous fiscal year consist of consulting services,etc.
In addition, the details of non-audit work for the consolidated subsidiaries consist of tax researchservice, etc.
c.

Details of compensation for other important audit attestation
Not applicable.

d.

Policy on determination of compensation for audits
The Articles of Incorporation stipulate that the compensation paid to the Accounting Auditors
is to be determined by the Representative Director with the consent of the Audit Committee.

e.

The reason why the Audit Committee agreed on the compensation for the Accounting Auditors
The Audit Committee conducted necessary reviews of the appropriateness of Accounting
Auditors’ audit plan, system, audit work, basis of calculating estimated compensation, etc., andjudged that the amount of compensation for MMC’s audit was reasonable.

- 99 -

(4) Compensation, etc. of corporate officers
A. Total compensation paid to corporate officers, compensation total by type, and number ofpayeesTotal compensation by type(Millions of yen)
Total
compensation
Classification(Millions ofyen)

Monetary compensation

Monetary
compensation

Share-based compensation

Stock Options
Short-termLong-term
GrantedAdditional
Deferred
Base
PerformancePerformanceLinked to
Individual
Retirement
Compensation
linkedlinkedPerformance
Compensation
Compensation
Compensation
Compensationin Previous
Fiscal Years

Number ofpayees(persons)

OthersMembers of
the Board(Excluding
OutsideDirectors)

33

33

–

–

–

–

–

–

1

Executive
Officers

908

441

235

32

110

38

0

49

12

OutsideDirectors andOutside Audit& Supervisory
Board
Members

213

213

–

–

–

–

–

–

12

(Notes) 1. The number shown in the above table for Outside Directors and Outside Audit & Supervisory Board Members
indicates the number of persons who, of the total of 12 persons served as Outside Directors or Outside Audit &Supervisory Board Members during the fiscal year under review, received compensation as Members of the Board.
In addition, the number includes one Outside Director who resigned during the fiscal year under review.
2. For Members of the Board who serve concurrently as Executive Officers, MMC pays compensation for theirservice as Executive Officers and does not pay compensation for their service as Members of the Board.
3. From FY2017 to FY2020, MMC granted Stock Options to Executive Directors as compensation for each fiscal
year linked to business performance, etc. in the previous fiscal year. The amounts under “Stock Options Granted
Linked to Performance in Previous Fiscal Years” are the amounts that were posted as expenses incurred for
granting those share acquisition rights for the fiscal year under review.
4. “Long-Term Performance-Linked Compensation” is the performance-linked remuneration through the Board
Incentive Plan (BIP) Trust (“BIP Trust”), which was introduced by the Company in FY2020. Accompanying thefinalization of business results for FY2023, the above table shows the total amount of expenses recorded for the
points (equivalent to 247,559 shares of the Company) granted under the BIP Trust (91 million yen) and the longterm performance-linked compensation and the amounts paid to one officer who resigned during the period (19million yen) to be paid in cash as a substitute to one overseas resident and one non-Japanese officer who are noteligible for the BIP Trust.
5. “Deferred Retirement Compensation” is fixed compensation using the “BIP Trust.” The above table shows thetotal of the 34 million yen posted as expenses for granting points (equivalent to 94,170 shares of MMC) during
the fiscal year under review for the BIP Trust and the 4 million yen posted as a provision for deferred retirementcompensation for the fiscal year under review that MMC plans to pay in cash as a substitute to one overseas
resident and one non-Japanese officer who are not eligible for the BIP Trust.
6. “Others” is the 49 million yen equivalent to the tax adjustment allowance, housing allowance, etc. for one
Executive Officer.

- 100 -

B. Total amount of consolidated compensation for corporate officers (persons whose totalcompensation exceeds 100 million yen) by classification
Total compensation by type (Millions of yen)
Monetary compensation
Classification

Name

Executive

Takao Kato

Officer

Hiroshi Nagaoka

Tatsuo Nakamura

John SignorielloExecutive
Officer
Executive
Officer
Executive
OfficerCompany
category

Total
compensation
Base(Millions ofcompenyen)sationMonetary
compensation

Share-based compensation

ShortStockterm Addition- Long-term
options
Deferred
perforalperformance
grantedretirement
linked tomance individual
linkedcompensa- performancelinked compen- compensationin previous
compen- sation
tion
fiscal years
sationOthers

MMC

172

76

57

–

27

10

0

–

MMC

104

50

29

4

14

4

–

–

MMC

103

50

29

4

14

4

–

–

MMC

116

36

16

3

7

2

–

49

(Notes) 1. The value of “Long-term Performance-Linked Compensation” is the amount posted as expenses related to thenumber of points granted under the BIP trust or the amount paid in cash as a substitute to one non-Japanese officer
who is not eligible for the BIP trust.
2. The amount of Deferred retirement compensation is the amount of expenses posted that pertain to points granted
to eligible officers during the fiscal year under review under the BIP trust or the amount paid in cash as a substituteto one non-Japanese officer who is not eligible for the BIP trust.
3. The amount under Stock options granted linked to performance in previous fiscal years is the amount that wasposted as expenses incurred for granting the share acquisition rights granted by MMC as compensation linked to
the results, etc. for each applicable fiscal year from FY2017 to FY2020 for eligible officers.
4. “Others” is total amount of tax adjustment allowance, housing allowance, etc.

C. Overview of the Compensation Committee and its activities
MMC is a company with three committees. The Compensation Committee has the authority
to determine the policy for determining the content of individual compensation, etc. forMembers of the Board and Executive Officers, and the content of individual compensation,etc. for Members of the Board and Executive Officers. The Compensation Committee
comprises a total of 5 members, 1 Internal Director and 4 Outside Directors. In FY2023, theCompensation Committee held a total of 9 meetings, with 4 members having 100%
attendance and 1 member having 78% attendance. During FY2023, the Compensation
Committee examined and deliberated on KPIs, targets, etc., for Performance-linked
Compensation.
D. The contents and method for determining the policy for setting the amount of compensationof corporate officers or the calculation method
Pursuant to the Companies Act, the Compensation Committee establishes the policy for
determining the content of individual compensation, etc. for Members of the Board andExecutive Officers. Furthermore, as the Company’s Compensation Committee sets individualtypes of compensation in line with this policy, and in accordance with this setting, decides orplans to decide individual compensation for Members of the Board and Executive Officers
for the fiscal year under review after appropriate deliberation, etc., it has been judged as being
consistent with this policy.
<Basic approach>(i)

The compensation system shall contribute to MMC group’s sustainable growth andmedium- to long-term improvement of corporate value.
- 101 -

(ii) The compensation system shall be linked with corporate results in order to motivate
Executive Officers to accomplish management strategies and management plans as wellas to achieve targeted corporate results in an appropriate manner.
(iii) The compensation levels shall contribute to securing professionals who measure up to
ideal standards for management personnel that MMC expects for those responsible forcorporate operation to have.
(iv) The compensation system shall increase a shared awareness of profits with shareholders
and awareness of shareholder-focused management.
(v) The decision-making process relating to compensation shall be highly transparent andobjective.
E.

Partial revision to the officer compensation system
MMC has revised part of the officer compensation system in conjunction with efforts
towards the new midterm business plan “Challenge 2025,” reducing the proportion of fixedcompensation and increasing the proportion of performance-linked compensation.

F.

Approach to compensation of Members of the Board and Executive Officers, specificcompensation items and composition of compensation, etc.
(a) Members of the Board (excluding Members of the Board who serve concurrently as
Executive Officers)
Remuneration for Directors who do not concurrently serve as Executive Officers shallbe basic compensation, which is a fixed amount, considering that their role is to supervise
the overall execution of business from a standpoint independent from the execution ofbusiness. In addition, the chairpersons and members of the Nomination Committee,
Compensation Committee, and Audit Committee receive only a fixed amount of
remuneration (allowance) that is added in accordance with their duties.
(b) Executive Officers
MMC established a policy for the compensation of Executive Officers (including
Executive Officers who serve concurrently as Members of the Board) consisting of Base
Compensation, Short-term Performance-linked Compensation and Additional Individual
Compensation, as well as Long-term Performance-linked Compensation and Deferred
Retirement Compensation as share-based compensation (see “Share-based
compensation (BIP trust)” below). The goal of this is to strive for sustained improvementof corporate value, while sharing value with shareholders, and to secure skilled
professionals including those from outside the company and overseas.
Fixed/
Performance-linked

Base Compensation

Payment method

Compensation ratio(decided according toposition)
FY2023Cash

44 to 58%

Shares (BIP Trust)

6 to 10%

Fixed
Deferred Retirement Compensation
Additional Individual Compensation

0 to 5%
Cash

Short-Term Performance-Linked Compensation

16 to 23%

Performance-linked

Long-Term Performance-Linked Compensation

Shares (BIP Trust)< Deferred Retirement Compensation >- 102 -

16 to 23%

Deferred Retirement Compensation is accrued by deferring a portion of the payment (6 to10%) of fixed compensation, and paid upon retirement.

- 103 -

< Additional individual compensation >Additional individual compensation is a reward provided to each Executive Officer(excluding the President) who achieve targets set individually according to the area of
business operations for which they are responsible, besides company-wide targets. The
Executive Officer, President & CEO approves and determines the individual targets set byeach Executive Officer, such as sales, profit, cost reduction, quality, and productivity
improvement targets, and evaluates the degree of achievement.
Payment formula = total amount of prescribed remuneration × compensation ratio× achievement rate (0 to 100%)
Planned payment period

July 2024< Short-term Performance-linked Compensation >Short-term Performance-linked Compensation is compensation to incentivize the payee toachieve the single-year business performance targets based on annual plans. So that thiscompensation effectively functions as an incentive to aim for the achievement of managementtargets, indicators have been established for the Group’s management targets.
For FY2023, while maintaining profitability, we have established “consolidated operating
profit” and “profit attributable to owners of parent” as KPI from the standpoint of aiming toshare value with our shareholders and have made our target levels those set forth in the annual
plan.
KPI, targets and percentage weight, and payment formula
Targets(for 100%
achievement)(billions of yen)

KPI

Results
Percentage(billions of yen)weightConsolidated
operating profit

150.0

191.0

50%

Profit attributable toowners of parent

100.0

154.7

50%

Payment formula

Plannedpayment period

Total amount ofprescribed remuneration× compensation ratio ×achievement rate (50 to150%) × percentage
weightJuly 2024< Long-term Performance-linked Compensation >Long-term Performance-linked Compensation is compensation to incentivize the payee toachieve the long-term targets necessary to realize the future envisaged for MMC. The
indicators for this compensation were determined after considering the key performanceindicators used in the manufacturing sector, the pressing issues of management, and thesharing of value with shareholders.
Furthermore, we have established ESG indicators as KPI and priority items to be addressed
in increasing the medium- to long-term corporate value of MMC.
Since FY2023, we have adopted a method (new method) where we set annual targets for eachof three fiscal years, including the fiscal year under review, and calculate the payment amountbased on the average achievement rate for each year. This amount will be paid after thecompletion of the three fiscal years. Additionally, for FY2023 and FY2024, we have decided
to pay the Executive Officers who were in office at the end of FY2022 an amount that, in
addition to achievement rates, is based on two-thirds of the prescribed amount for FY2023- 104 -

and one-third of the prescribed amount for FY2024, on the basis of the previous system, as
an adjustment for the difference due to the transition to the new method.
KPI, targets and percentage weight, and payment formula
KPI

Targets for
FY2023
Classification(for 100%
achievement)

Financial

EBITDA

Results

Percentage
weight*1

Exceeded
the target by
41.7 billion
yen

40%

40%

ASEAN marginal
profitFinancial*1

Fell shortof thetarget by
28.9 billionyen

CO2 emissions bybusiness activities(FY2023)

ESG

*2

377
thousand
ton

10%

Employee engagement(FY2024)

ESG*3+1 point

10%

Payment formula

Plannedpayment
periodTotal amount ofprescribed remuneration× compensation ratio ×
average achievement rate
for 3 fiscal years
including the fiscal year
under review (50% to150%) × percentage
weightAugust 2026
Total amount ofprescribed remuneration× compensation ratio ×
average achievement rate
for 3 fiscal years
including the fiscal year
under review (50% to150%) × percentage
weight*1

Targets have been set for figures in the fiscal year under review necessary to achieve the midterm business plan.

*2

Targets have been set based on the necessary emissions volume in the fiscal year under review toachieve future targets.
The goal for each fiscal year has been set at +1 point based on the score produced from theemployee engagement survey implemented in FY2023.

*3< Share-based compensation (BIP trust) >Share-based compensation (BIP trust) refers to a mechanism that operates as follows. In cases
where a certain number of points are granted and beneficiary rights are satisfied in accordancewith MMC’s share-based compensation rules, the payees receive a delivery of shares of
MMC’s common stock amounting to the equivalent of the determined ratio of the number ofpoints that are converted to shares on a conversion ratio of 1 share for every 1 point, and forthe shares of common stock of MMC corresponding to the remaining number of points, thepayees receive money equivalent to the price to convert the equivalent number of shares ofcommon stock of MMC to money within the trust (hereinafter the “Delivery, etc. of MMC’s
Shares etc.”)

For the Long-term Performance-linked Compensation, Delivery, etc. of MMC’s Shares etc.
is made at an amount corresponding to the position of the eligible officer and the level ofachievement of business targets, etc. for a three-fiscal-year evaluation period. In addition, for- 105 -

the Deferred Retirement Compensation, an amount of points corresponding to the officer’s
position are granted annually and, as a general rule, the Delivery, etc. of MMC’s Shares etc.
is made in a single lump delivery upon retirement. If it is found that an eligible officer has
violated the appointment contract, the entire amount or a portion of the beneficiary rights ofthe shares scheduled for delivery under the compensation plan may be forfeited by decisionof the Compensation Committee (malus clause) or the officer may be required to return theentire amount or a portion of the delivered shares, etc. (clawback clause). The eligible officers
must follow the rules to prevent insider trading established by MMC and various related laws
and regulations with respect to MMC’s shares acquired through the compensation plan.
(5) Status of shareholdings(i) Standard of investment shares division and the policy
MMC classifies its investment shares as either investment shares held for purposes of portfolio
investment with the aim of generating profit derived from changes in the value of the shares anddividends pertaining to the shares, or otherwise as investment shares held for purposes other thanportfolio investment. MMC holds investment shares for purposes other than portfolio investment
shares only, and accordingly does not hold investment shares for purposes of portfolio investment
shares. Moreover, MMC holds investment shares for purposes other than portfolio investment shares
only if it deems that such shareholdings are necessary for developing its business with respect tomaintaining and strengthening medium- to long-term partnerships, and furthermore essential inorder to achieve sustainable growth and to increase medium- to long-term corporate value.
(ii) Investment shares held for purposes other than portfolio investment sharesa.

Method for verifying holding policy and rationale for holdings, and description of verification
performed by the Board of Directors, etc. regarding propriety of holding individual issues
MMC maintains cross-shareholdings based on the aforementioned policy, and strives to reduce
its cross-shareholdings by such means as selling shares deemed no longer necessary to hold forsuch purposes. Individual issues currently held are subject to validation on an annual basis interms of factors including the necessity of maintaining such holdings in relation to MMC’s
business operations and the medium- to long-term economic rationale for such holdings, and theresults of the validation is reported at meetings of the Board of Directors.

b. Number of issues and balance sheet amount
Number of issues(Issues)

Total balance sheet amount(Millions of yen)

Unlisted shares

19

4,874

Shares other than unlisted shares

4

3,520

(Issues of which the number of shares increased in the fiscal year under review)

Unlisted shares

Shares other than unlisted shares

Number of issues(Issues)

Total acquisition price forthe shares increased(Millions of yen)

–

–

1

- 106 -

975

Reason for increase in
number of shares–
Investment was madebased on the judgmentthat strengthening therelationship with theinvestee would
contribute to increasing
MMC’s corporate value
over the medium andlong term

(Issues of which the number of shares decreased in the fiscal year under review)
Number of issues(Issues)

Total selling price for theshares decreased(Millions of yen)

Unlisted shares

20

Shares other than unlisted shares

–

–

c.

Information on number of shares, balance sheet amount, etc. of individual issues of specified
investment shares
Specified investment sharesFiscal year underPrevious fiscal year
review
Holding purpose, summary of business
Number of shares Number of shares alliances, etc., quantitative holding Share-holding(Shares)(Shares)Issueseffect (Note) and reason for the increase status ofin the
MMC
Balance sheet
Balance sheet
number of sharesamountamount(Millions of yen) (Millions of yen)
2,277,634
2,277,634 Held to maintain and develop the
China Motor
automobile manufacturing and sales
None
Corporation
1,396
637 business in Taiwan
FLEETPARTNERSGROUP LTDPT GoTo Gojek
Tokopedia
United Motors
Lanka PLC

2,796,208
1,036
1,423,194,949
942– Newly acquired to strengthen
automobile sales business and expand– related businesses in Australia

None1,423,194,949 Held to collaborate in expanding new
business domains in the ASEAN
1,380 region.

None

4,937,142

4,937,142

144

120

Held to maintain the automobile sales
business in Sri Lanka

None(Note) Given the nature of cross-shareholdings, MMC does not enlist quantitative criteria in making
decisions on such holdings, but instead, as mentioned above, individual issues currently held are
subject to validation on an annual basis in terms of factors including the necessity of maintaining suchholdings in relation to MMC’s business operations and the medium- to long-term economic rationale
for such holdings.

- 107 -

V. Financial Information
1. Basis of preparation of the consolidated financial statements and non-consolidated financial statements(1) The consolidated financial statements of MMC are prepared in accordance with the “Regulation on
Terminology, Forms, and Preparation Methods of Consolidated Financial Statements” (Order of the
Ministry of Finance No. 28 of 1976).
(2) The non-consolidated financial statements of MMC are prepared in accordance with the “Regulation
on Terminology, Forms, and Preparation Methods of Non-consolidated Financial Statements” (Orderof the Ministry of Finance No. 59 of 1963) (hereinafter the “Regulation on Financial Statements,etc.”).
As MMC falls under the category of a company filing financial statements prepared in accordancewith special provisions, the non-consolidated financial statements of MMC are prepared inaccordance with Article 127 of the Regulation on Financial Statements, etc.
2. Independent audit
The consolidated and the non-consolidated financial statements for FY2023 (from April 1, 2023 to March
31, 2024) were audited by Ernst & Young ShinNihon LLC, in accordance with Article 193-2, paragraph(1) of the Financial Instruments and Exchange Act.
3. Particular efforts to secure the appropriateness of the consolidated financial statements, etc.
MMC is making particular efforts to ensure the appropriateness of the consolidated financial statements.
Specifically, MMC has become a member of the Financial Accounting Standards Foundation (hereinafter
the “Foundation”) and participates in seminars and other programs sponsored by the Foundation in orderto have an appropriate understanding about the contents of the accounting standards, etc., and establish asystem so that MMC might be able to properly respond to the changes in the accounting standards, etc.

- 108 -

1. Consolidated financial statements(1) Consolidated financial statements(a) Consolidated balance sheet(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Notes and accounts receivable - trade, and contract
assetsFinance receivables
Merchandise and finished goods
Work in process
Raw materials and supplies
Short-term loans receivable
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings and structures, net
Machinery, equipment and vehicles, net
Tools, furniture and fixtures, net
LandConstruction in progress
Total property, plant and equipment
Intangible assets
Investments and other assets
Investment securities
Long-term loans receivable
Retirement benefit asset
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets- 109 -

As of March 31, 2024(*3)

595,961(*1)

184,633(*1)

151,006(*3)

226,042
259,848
24,83566,901
1,022
121,481(5,766)
1,474,959(*3)

240,517
317,485
24,68469,717
7,027
144,510(1,333)
1,627,849

(*3)

(*2)

(*4)

(*3), (*4)

86,288
134,524
56,044
116,734
61,011
454,603
40,003
95,361
2,760
4,045
74,02959,660(3,898)
231,959
726,565
2,201,524

674,234

(*3)

(*2)

(*4)

(*3), (*4)

92,079187,469
66,496
122,506
29,583
498,135
44,904
104,094
5,013
17,22486,31375,445(4,511)
283,579
826,620
2,454,470

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Notes and accounts payable - trade
Electronically recorded obligations - operating
Short-term borrowings
Commercial papers
Current portion of long-term borrowings
Lease liabilities
Accounts payable - other, and accrued expenses
Income taxes payable
Provision for product warranties
Provision for contingent loss
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Deferred tax liabilities
Retirement benefit liability
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Retained earnings
Treasury shares
Total shareholders’ equity
Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Share acquisition rights
Non-controlling interests
Total net assets
Total liabilities and net assets- 110 -

(*3)

(*1)

(*3)

(*1)

369,495
92,00931,33047,50073,0983,519
233,874
13,51054,605
10,504
77,9391,007,389
248,048
24,785320
36,68853,915363,758
1,371,148

As of March 31, 2024

(*3)

(*1)

(*3)

(*1)

337,434
102,141
68,05343,500224,6123,719
232,510
9,540
68,048–85,641
1,175,202
127,781
24,690203
20,367
61,768234,8111,410,014

284,382
199,620
338,424(989)
821,438

284,382
199,585
478,239(1,688)960,518977(35)(5,438)(15,802)(20,298)
29
29,208830,376
2,201,524

2,045
(739)
35,454
12,93349,69423
34,2191,044,456
2,454,470

(b) Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income(Millions of yen)
For the fiscal year ended
March 31, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising and promotion expenses
Freight costs
Provision of allowance for doubtful accounts
Remuneration, salaries and allowances for directors (and otherofficers)
Retirement benefit expenses
Depreciation
Research and development expenses
Other
Total selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest income
Dividend income
Foreign exchange gains
Share of profit of entities accounted for using equity method
Other
Total non-operating income
Non-operating expenses
Interest expenses
Litigation expenses
Financing expenses
Share of loss of entities accounted for using equity method
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Gain on sale of investment securities
Gain on liquidation of subsidiaries
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss on sale of non-current assets
Impairment losses
Loss related to Russian operations
Loss related to Chinese operations
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)
Profit (loss) attributable to non-controlling interests
Profit (loss) attributable to owners of parent- 111 -

(*1)
(*4)

(*4)

(*2)

(*3)
(*5)
(*7)
(*8)

2,458,141
1,935,341
522,799

For the fiscal year ended
March 31, 2024
(*1)
(*4)

2,789,589
2,220,743
568,846

51,53572,747(605)

63,00993,593(159)

74,711

81,4383,982
14,51661,02554,390332,304
190,495

4,444
16,69057,642
61,215
377,874
190,971

(*4)

7,623
677
5,421
–
2,603
16,326

13,412580
12,8885,259
2,268
34,409

3,559
4,306
706
12,2094,017
24,799182,022

6,054
5,422
692
–
4,171
16,340209,040

27,271
24–
398
27,693
1,941
1,713
5,015
19,92810,504
2,483
41,586
168,129
36,410(44,642)(8,232)
176,361
7,630
168,730

(*2)

(*6)

(*3)
(*5)
(*7)
(*8)

481
97
824
103
1,506
3,348
119
1,294
1,313
23,002635
29,714
180,832
27,577(7,307)
20,270160,562
5,852
154,709

Consolidated statement of comprehensive income(Millions of yen)
For the fiscal year ended
March 31, 2023

For the fiscal year ended
March 31, 2024

176,361

160,562(134)(10)
20,773(1,670)

1,067
(732)
38,38828,720

7,384

4,781

Profit (loss)
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Remeasurements of defined benefit plans, net of tax
Share of other comprehensive income of entities
accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable toComprehensive income attributable to owners of parent
Comprehensive income attributable to non-controllinginterests- 112 -(*1)

26,342
202,703(*1)

72,224
232,786

194,190

224,703

8,512

8,083

(c) Consolidated statement of changes in net assets(Millions of yen)
Shareholders’ equity

For the fiscal year ended
March 31, 2023
Balance at beginning of
periodShare capital

CapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity284,382

199,837

169,694(1,382)652,531

Changes during period
Profit (loss) attributableto owners of parent
Purchase of treasury
shares
Disposal of treasury
sharesExercise of shareacquisition rights
Net changes in items
other than shareholders’equity168,730(216)

Total changes during period
Balance at end of period

284,382

168,730
(0)

(0)

7

7

385

169

(216)

168,730

393

168,906

199,620

338,424(989)

821,438

Accumulated other comprehensive income

For the fiscal year ended
March 31, 2023

Balance at beginning of
periodValuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

Shareacquisitionrights

Noncontrollinginterests

Total net
assets

1,111

(31)

(32,571)(14,267)(45,759)

195

23,334

630,301

Changes during period
Profit (loss) attributableto owners of parent
Purchase of treasury
shares
Disposal of treasury
sharesExercise of shareacquisition rights
Net changes in items
other than shareholders’equity168,730
(0)
7
169
(134)

(3)

27,133(1,534)25,460

(166)

5,874

31,168

Total changes during period

(134)

(3)

27,133(1,534)25,460

(166)

5,874

200,075

Balance at end of period

977

(35)

(5,438)(15,802)(20,298)

29

29,208830,376- 113 -

(Millions of yen)
Shareholders’ equity

For the fiscal year ended
March 31, 2024
Balance at beginning of
periodShare capital Capital surplus
284,382

199,620

Retainedearnings
338,424

Total
Treasury shares shareholders’equity(989)

821,438

Changes during period
Dividends of surplus
Profit (loss) attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesExercise of shareacquisition rights
Net changes in items otherthan shareholders’ equity(14,894)

154,709

154,709(35)

Total changes during period
Balance at end of period(14,894)

284,382

(785)

(785)

43

43

41

6

(35)

139,815(699)

139,080

199,585

478,239(1,688)960,518

Accumulated other comprehensive income

For the fiscal year ended
March 31, 2024

Balance at beginning of
periodValuationdifference on
available-forsale securities
977

Deferred
gains orlosses onhedges(35)

Foreigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive income

Shareacquisitionrights

Noncontrollinginterests

Total net
assets(5,438)(15,802)(20,298)

29

29,208830,376

Changes during period
Dividends of surplus
Profit (loss) attributable toowners of parent
Purchase of treasury
shares
Disposal of treasury
sharesExercise of shareacquisition rights
Net changes in items otherthan shareholders’ equity(14,894)
154,709
(785)
43
6
1,067

(704)

40,89328,73669,993(5)

5,011

74,999Total changes during period

1,067

(704)

40,89328,73669,993(5)

5,011

214,079

Balance at end of period

2,045

(739)

35,454

12,93349,69423

34,2191,044,456- 114 -

(d) Consolidated statement of cash flows(Millions of yen)
For the fiscal year ended
March 31, 2023
Cash flows from operating activities
Profit (loss) before income taxes
Depreciation
Impairment losses
Loss related to Russian operations
Loss related to Chinese operations
Loss (gain) on liquidation of subsidiaries
Increase (decrease) in allowance for doubtful accounts
Increase (decrease) in retirement benefit liability
Interest and dividend income
Interest expenses
Foreign exchange losses (gains)Share of loss (profit) of entities accounted for using
equity method
Loss (gain) on sale and retirement of non-current assets
Decrease (increase) in trade receivables
Decrease (increase) in finance receivables
Decrease (increase) in inventories
Increase (decrease) in trade payables
Increase (decrease) in accounts payable - other, andaccrued expenses
Other, net
SubtotalInterest and dividends received
Interest paid
Income taxes paid
Net cash provided by (used in) operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from sale of property, plant and equipment
Purchase of intangible assets
Other, net
Net cash provided by (used in) investing activities
Cash flows from financing activities
Increase (decrease) in short-term borrowings
Increase (decrease) in commercial papers
Proceeds from long-term borrowings
Repayments of long-term borrowings
Dividends paid
Dividends paid to non-controlling interests
Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate change on cash and cash
equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period- 115 -(*1)

For the fiscal year ended
March 31, 2024

168,129
60,132
5,015
19,92810,504–(3,632)
8,003(8,300)3,559(5,354)

180,832
67,737
1,294
1,313
23,002(824)(4,258)3,560(13,993)
6,054(7,861)

12,209(5,259)(23,616)(59,282)(3,496)(38,739)
63,702

2,987
43,597(14,335)(25,751)(58,946)

6,639

1,119

(19,341)
196,058
13,447(3,620)(32,309)
173,576(41,426)
158,843
18,833(5,877)(30,992)
140,806(71,041)
36,389(8,601)(9,891)(53,145)(113,964)
1,768(12,881)(13,788)(138,865)

8,797
4,500
238,541(306,549)(16)(2,633)(4,504)(61,865)

34,768(4,000)117,602(87,436)(14,845)(3,104)(5,310)37,67425,89038,65884,456
511,473595,930

78,274595,930
674,204(*1)

NotesMaterial basis of the preparation of consolidated financial statements
1. Scope of consolidation(1) Number of consolidated subsidiaries: 34
The names of major companies are omitted here because they are provided in “I. Overview of theCompany, 4. Status of subsidiaries and associates.”
Changes in the scope of consolidation
1) Excluded from the scope of consolidation: 1
Company excluded due to liquidation
Pajero Manufacturing Co., Ltd.
(2) Names of major unconsolidated subsidiaries
MITSUBISHI MOTORS WING CO., LTD. (the trade name was changed from MMC Wing Co.,
Ltd. on December 1, 2023), etc.
Reason for exclusion from scope of consolidation
The amounts of total assets, net sales, profit or loss, and retained earnings of unconsolidated
subsidiaries of the above, are all insignificant in size and do not have a material impact on the
consolidated financial statements in aggregate either, therefore such subsidiaries are excluded fromthe scope of consolidation.
2. Application of the equity method(1) Number of associates to which the equity method is applied: 17
There were no unconsolidated subsidiaries accounted for using the equity method at the end of the
fiscal year.
The names of major companies are omitted here because they are provided in “I. Overview of theCompany, 4. Status of subsidiaries and associates.”
Changes in the scope of equity method
1) Newly included in the scope of equity method: 1
Company included in the scope of equity method due to the acquisition of equity interests
GAC Mitsubishi Motors Sales Co., LTD.
2) Excluded from the scope of equity method: 1
Company excluded from scope of equity method due to its sale of equity interests
GAC Mitsubishi Motors Co., Ltd.
(2) Names of unconsolidated subsidiaries and associates to which the equity method is not applied
Unconsolidated subsidiaries
MITSUBISHI MOTORS WING CO., LTD. (the trade name was changed from MMC Wing Co.,
Ltd. on December 1, 2023), etc.
Associates
Diamond F.C. Partners, Co., Ltd., etc.
Reason for non-application of equity method
The amounts such as profit or loss and retained earnings of unconsolidated subsidiaries andassociates to which the equity method is not applied are all insignificant in size and do not have a- 116 -

material impact on the consolidated financial statements in aggregate either, therefore such
unconsolidated subsidiaries and associates are excluded from the scope of equity method.
3. Fiscal year end dates of consolidated subsidiaries
For those overseas 7 consolidated subsidiaries such as Mitsubishi Motors (Thailand) Co., Ltd., for which
the fiscal year end date (December 31) is different from the consolidated fiscal year end date (March31), provisional financial statements are prepared as of March 31, for consolidation purposes.

- 117 -

4. Accounting policies(1) Valuation basis and methods for significant assets
Securities
Held-to-maturity securities:
Stated at amortized cost.
Available-for-sale securities
Securities, excluding shares without market value:
Carried at fair value and the cost of securities sold is computed based on the moving averagemethod. The difference between the acquisition cost and the carrying value of available-forsale securities, including unrealized gains and losses, is recognized in valuation difference on
available-for-sale securities in the accompanying consolidated balance sheet.
Shares without market value:
Carried at cost determined by the moving average method.
Derivative financial instruments
Market price method (excluding interest rate swaps for which the special treatment is applied)
Inventories
Inventories of MMC and its domestic consolidated subsidiaries are principally stated at cost
determined by the first in first out method or specific identification method (under either method,
the balance sheet carrying value is reduced to recognize any deterioration of recoverability).
Inventories of the overseas consolidated subsidiaries are principally stated at the lower of cost or
market value, cost being determined by the specific identification method.
(2) Depreciation and amortization method for significant depreciable and amortizable assets
Property, plant and equipment (excluding leased assets)
MMC and its consolidated subsidiaries apply the straight-line method, in principle. The useful
lives of assets of MMC and some of its domestic subsidiaries are based on the estimated lives of
the assets, and those for other domestic consolidated subsidiaries are based on the same standard
as those provided for in the Corporation Tax Act. The useful lives of the assets are determinedbased on the expected useful lives for the overseas consolidated subsidiaries.
Intangible assets (excluding leased assets)
Intangible assets (excluding leased assets) are amortized using the straight line method for MMC
and its domestic consolidated subsidiaries and using the straight line method primarily over theperiod for which each asset is available for use for its overseas consolidated subsidiaries. Software
intended for use by MMC and its domestic consolidated subsidiaries is amortized using thestraight line method over the period for which each asset is available for use (10 years in the caseof software for some major core systems; 5 years in the case of other software).
Leased assets
Assets recognized under finance leases that do not involve transfer of ownership to the lessee for
MMC and its domestic consolidated subsidiaries and right-of-use assets for the overseas
consolidated subsidiaries are depreciated using the straight line method based on the contract termof the lease agreement. If a guaranteed residual value is determined in the lease agreement, thesaid guaranteed residual value is deemed as the residual value of such leased assets. If the residual
value is not determined, it is deemed to be zero.
(3) Significant allowances and provisions
Allowance for doubtful accounts
To prepare for losses from bad debts for trade receivables, loans, etc., an estimate of the amountof specific uncollectible accounts is provided as an allowance for doubtful accounts based on the- 118 -

historical default rate for ordinary receivables, and taking into account individual collectability
for specific receivables such as doubtful receivables.
Provision for product warranties
MMC and domestic consolidated subsidiaries calculate the provision for product warranties after
taking into account, according to the warranty agreements, future warranty forecasts based on past
results in order to provide for the products’ after-service costs. Overseas consolidated subsidiaries
calculate the provision for product warranties after taking into account future warranty forecasts
based on their past results in order to provide for the products’ after-service costs.
Provision for contingent loss
Sensible amounts to cover expected losses calculated based on individual risks for eachcontingency and other factors are recorded to prepare for highly likely contingent loss.
(4) Accounting method for retirement benefits
Method of attributing estimated retirement benefits to the periods
In calculating retirement benefit obligations, the projected total retirement benefits are allocatedto periods until the end of the fiscal year using a benefit formula basis.
Method of amortization of actuarial gains and losses and prior service costs
Prior service cost is amortized using the straight line method over a fixed number of years (mainly
10 years) within the estimated average remaining service years of the employees at the time ofincurrence.
Actuarial gains and losses are being amortized using the straight line method over a fixed numberof years (mainly 10 years) within the estimated average remaining service years of the employees
commencing from the following fiscal year after incurrence.
Unrecognized actuarial gains and losses and unrecognized prior service cost are recorded inremeasurements of defined benefit plans in accumulated other comprehensive income under net
assets after adjusting for tax effects.
(5) Recognition standard for significant revenues and expenses
The main performance obligation of the automobile business is the sale of vehicles and parts.
Revenue is recognized when the control of goods or services is transferred to customers, such as
when a vehicle is delivered, as is the normal time when performance obligation of sales ofvehicles and parts is satisfied (normal time when revenue is recognized.) In addition, alternative
treatment provided for in paragraph 98 of the “Implementation Guidance on Accounting Standard
for Revenue Recognition” is applied, whereby revenue from some domestic sales, etc., isrecognized at the time of shipment; provided that a period from the time of shipment until thetime when control of the said merchandise or product is transferred to a customer is deemed tobe the normal period. In addition, payments of sales incentives to sales companies are considered
to be a variable consideration when calculating transaction prices. The incentive amount expected
to be paid in the future is deducted from sales during the period when control of goods or services
is transferred.
As the purpose of a product warranty provided in connection with the sale of products, etc., is toguarantee that the product sold conforms to the specifications agreed with the customer, a productwarranty allowance is recognized corresponding to the costs associated with the said warranty.
The main performance obligation in the financial business is the provision of services related tosales finance and leasing services (including property sales, etc., associated with expiration orcancellation of lease transactions.) Interest income in sales finance is recorded based on theinterest rate method over the contract period. Lease revenue from an operating lease is recorded
proportionately over the lease term, and that from a finance lease for each period is recorded at
the lease payment amount received in the respective periods of the lease term.

- 119 -

(6) Translation of significant foreign currency accounts
Monetary receivables and payables denominated in foreign currencies are translated into yen at
the rates of exchange in effect at the end of the fiscal year, and differences arising from thetranslation are included in the consolidated statement of income. For overseas consolidated
subsidiaries, etc., assets and liabilities are translated into yen at the rates of exchange at the endof the fiscal year, and income and expenses are translated at the average exchange rates during
the period. Differences arising from the translation are included in foreign currency translation
adjustment and non-controlling interests under net assets.
(7) Significant hedge accounting method
Hedge accounting method
Primarily, deferred hedge accounting is applied for derivative instruments. Interest rate swaps
meeting the requirements for special treatment are accounted for using the special treatment.
Hedging instruments and hedged items
Hedging instruments and hedged items to which hedge accounting is applied for the fiscal year
under review are as follows:a. Hedging instruments: Forward foreign exchange contracts
Hedged items: Primarily, trade receivables denominated in foreign currencies arising fromproduct exports (on forecast transactions)b. Hedging instruments: Interest rate currency swaps
Hedged items: Borrowings denominated in foreign currencies
Hedging policy
MMC is conducting hedging activities in order to avoid future foreign exchange fluctuation risk
on monetary receivables and payables denominated in foreign currencies arising from normal
course of business transactions and interest rate fluctuation risk on borrowings, etc.
Method of assessing of hedge effectivenessWith respect to forward foreign exchange contracts, assessment of hedge effectiveness is omitted,
since material conditions are identical with forecast transactions to be hedged and it can beassumed to offset market fluctuations at the time of inception of hedges and afterward. Also, withrespect to interest rate currency swaps through integrated processing, assessment of effectivenessis omitted.
With respect to interest rate swaps accounted for using special treatment, assessment of hedge
effectiveness is substituted by identifying that they meet the requirements.
(8) Method and period of goodwill amortization
Goodwill is amortized using the straight-line method over a period of 5 years beginning with the dayon which it is realized.
(9) Scope of cash and cash equivalents in the consolidated statement of cash flows
Cash and cash equivalents consist of cash on hand, cash in banks which can be withdrawn at any
time and short-term investments with a maturity of three months or less when purchased which caneasily be converted to cash and are subject to little risk of change in value.
(10) Other significant matters serving as the preparation of consolidated financial statements
Application of the group tax sharing system
The group tax sharing system is applied.

- 120 -

Significant accounting estimates
1. Liabilities related to market quality measures
1) Amount recorded in the consolidated financial statements as of March 31, 2024
As of March 31, 2023
(Millions of yen)
Liabilities related to market
quality measures

As of March 31, 2024
(Millions of yen)

19,49520,925(The above amount is included in accounts payable - other, and accrued expenses in the
consolidated balance sheet.)2) Information on significant accounting estimates for identified items(i) Calculation method
The MMC group reasonably estimates the future expenses for measures relating to thevoluntary recall and repair of sold products that are non-compliant under an individual
country’s regulatory requirements concerning safety and the environment. In cases where such
expenditures are likely to be incurred and can be reasonably estimated, the MMC groupcalculates the future expenses, considering the expenses to be incurred per unit, the number ofunits, the occurrence rate of the recall and repair of subject vehicles, and other factors.
(ii) Key assumption
The key assumption used in the calculation of future expenses is the occurrence rate of therecall and repair, which is based on past experiences and the other factors by sales region andvehicle age.
(iii) Impact on the consolidated financial statements for the fiscal year ending March 31, 2025
In the event that the actual amount of expenses incurred differs from the estimate due tocalculation uncertainties arising primarily from the complexity of the estimated calculation andthe long period of time used for the estimate, additional liabilities or reversal of liabilities
related to market quality measures may be required. In addition, in the event of large-scale
recalls, remedial measures, etc., due to product defects or failures, the MMC group may berequired to bear significant costs and record additional liabilities related to market quality
measures.
2. Contingent liabilities (provision for loss on litigation)
While the MMC group has been developing its business in various countries around the world, it has
been cooperating with regard to various lawsuits, tax inquiries by tax authorities, administrative
researches by regulatory agencies, etc. While some of these have recorded provisions based on
estimated future losses, others have a certain degree of likelihood that loss would occur going
forward, but it is not possible to make a reasonable estimation of such loss for the future at this point
in time. Therefore, MMC has not recorded any provisions with regard to the latter.
The estimation of contingent liabilities (provision for loss on litigation) is also described in “Notes,
Consolidated balance sheet, 6 Contingent liabilities.”- 121 -

(Unapplied accounting standards, etc.)
1. The Company and affiliates in Japan• “Accounting Standard for Current Income Taxes” (ASBJ Statement No. 27, October 28, 2022,
Accounting Standards Board of Japan (ASBJ))• “Accounting Standard for Presentation of Comprehensive Income” (ASBJ Statement No. 25,
October 28, 2022, ASBJ)• “Implementation Guidance on Tax Effect Accounting” (ASBJ Guidance No. 28, October 28,
2022, ASBJ)(1) Outline
On February 2018, “Partial Amendments to Accounting Standard for Tax Effect Accounting”(ASBJ Statement No. 28) was announced, and the management of practical guidelines for tax
effect accounting was transferred from the Japanese Institute of Certified Public Accountants(JICPA) to ASBJ. In the process of deliberation, two topics, which were supposed to be
discussed after the announcement of ASBJ Guidance No. 28, etc., were deliberated andpublicized.
•

Accounting for tax expenses (taxation on other comprehensive income)• Tax effects of the sales of the shares, etc., of subsidiaries when the group taxation regime isapplied (shares of subsidiaries or affiliates)(2) Date to be applied
It will be applied from the beginning of the fiscal year ending March 2025.
(3) Impact from the application of the accounting standards, etc.
The effect of the application of “Accounting Standard for Current Income Taxes,” etc., on the
consolidated financial statements is currently under assessment.

- 122 -

Change in presentation(Consolidated statement of income)“Gain on reversal of asset retirement obligations,” which was separately presented in “Extraordinary
income” for the fiscal year ended March 31, 2023, has been included in “Other” from the fiscal year ended
March 31, 2024, due to the decreased importance of the amount. The consolidated financial statements forthe fiscal year ended March 31, 2023, have been reclassified to reflect this change in the presentation
method.
Consequently, 268 million yen of “Gain on reversal of asset retirement obligations” of “Extraordinary
income” and 129 million yen of “Other” thereof on the consolidated statement of income for the fiscal
year ended March 31, 2023, have been reclassified as 398 million yen of “Other.”(Consolidated statement of cash flows)“Decrease (increase) in time deposits,” which was separately presented in “Cash flows from investing
activities” for the fiscal year ended March 31, 2023, has been included in “Other” from the fiscal year
ended March 31, 2024, due to the decreased importance of the amount. The consolidated financial
statements for the fiscal year ended March 31, 2023, have been reclassified to reflect this change in thepresentation method.
Consequently, (2) million yen of “Decrease (increase) in time deposits” of “Cash flows from investing
activities” and (9,889) million yen of “Other” thereof on the consolidated statement of cash flows for the
fiscal year ended March 31, 2023, have been reclassified as (9,891) million yen of “Other.”
Additional information(Stock compensation plan)
Based on the resolution of the Compensation Committee meeting held on December 15, 2020, MMC has
introduced a stock compensation plan (hereinafter the “Plan”) that utilizes trusts as an incentive plan for
its Executive Officers and Corporate Officers, etc. (hereinafter referred to as “Executive Officers, etc.”)(1) Outline of the transaction
The Plan adopts a structure called the Board Incentive Plan Trust (hereinafter the “Trust”). Throughthe Trust, MMC will deliver MMC shares or pay money equivalent to the converted value of suchshares to Executive Officers, etc., according to their position and degree of achievement of
performance targets.
(2) Treasury shares remaining in the Trust
The MMC’s shares remaining in the Trust are recorded as treasury shares in the net assets section at
the book value of the trust (excluding the amount of incidental expenses). The book value of thetreasury shares as of March 31, 2024, is 981 million yen, and the number of shares is 2,668,506 shares.

- 123 -

Consolidated balance sheet(*1) Receivables from contracts with customers, contract assets, and contract liabilities:
Among “Notes and accounts receivable - trade and contract assets,” the amount of receivables andcontract assets from contracts with customers, and of “Other” of Current liabilities, and “Other” of
Non-current liabilities, the amount of contract liabilities are stated under “Notes (Revenue
Recognition) 3. (1) Balance, etc., of contract assets and contract liabilities.”(*2) Accumulated depreciation of property, plant and equipment is as follows:

Accumulated depreciation of property, plant and equipment

For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
907,382(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)
941,387(*3) Assets pledged as collateral and liabilities secured by the collateral(1) Assets pledged as collateral is as follows:

Finance receivables
Other

For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
99,536802(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)
111,174905

100,339

112,079

For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
25,98159,508(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)
29,02665,35685,48994,382For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
88,21017,883(20,950)(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)
94,93518,720(24,657)

Total(2) Liabilities secured by the collateral is as follows:

Current portion of long-term loans payable
Long-term loans payableTotal(*4) Investments in unconsolidated subsidiaries and associates

Investment securities
Other (investments and other assets)(of which investment in joint ventures)- 124 -

5. Guarantee obligation(1) Guarantee recipients
For the fiscal year ended March 31, 2023
(As of March 31, 2023)
Guaranteed

Guaranteedamount(Millions of yen)

MM Automobile
Schweiz AG
Mitsubishi
Corporation
Employees

For the fiscal year ended March 31, 2024
(As of March 31, 2024)

Description ofguaranteed
obligation

–

–

–

–

184

(Note)

Guaranteed

Guaranteedamount(Millions of yen)

MM Automobile
Schweiz AG
Mitsubishi
Corporation
Employees

Total
184
Total
(Note) Bank loans for “Employees’ property accumulation residence fund,” etc.

877
425
147

Description ofguaranteed
obligation
Liquidation ofreceivables
Liquidation ofreceivables(Note)

1,450(2) Retroactive obligation following liquidation of accounts receivable - trade(Millions of yen)
For the fiscal year ended March 31, 2023
For the fiscal year ended March 31, 2024
(As of March 31, 2023)(As of March 31, 2024)
631
1,081

6. Contingent liabilities
In a product liability lawsuit filed in the Philadelphia Court of Common Pleas, Pennsylvania, theUnited States in November 2018, the judgment was awarded on May 6, 2024 (U.S. local time) against
MMC’s North American subsidiary, Mitsubishi Motors North America, Inc. (MMNA), ordering
MMNA to pay damages in the amount of 1,010 million US dollars. On May 28, 2024 (U.S. local time),
MMNA filed an appeal against the above judgment to the Superior Court of Pennsylvania, the UnitedStates.
While the MMC group has been developing its business in various countries around the world, it has
been cooperating with regard to various lawsuits, including the case above, tax inquiries by tax
authorities, administrative researches by regulatory agencies, etc. While some of these have recorded
provisions based on estimated future losses, others have a certain degree of likelihood that loss would
occur going forward, but it is not possible to make a reasonable estimation of such loss for the future
at this point in time. Therefore, MMC has not recorded any provisions with regard to the latter.
As the MMC group conducts its business activities, we may become a party involved in various
lawsuits and other legal procedures with users, business partners and third parties. In such a legal
procedure or an ongoing legal procedure, if a judgment that is unfavorable to us is made, the operating
results and/or financial position of the MMC group for subsequent fiscal years may be affected.

- 125 -

7. Commitment line agreement
In order to prepare for increases in demand for funds and to secure funding liquidity, MMC has
concluded commitment line agreements with 20 correspondent financial institutions, in addition to
overdraft agreements.
The outstanding balance of unused commitment line as of March 31, 2024 based on thisagreement is as follows.

Total of commitment line
Outstanding balance of used commitment line

For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
152,000–(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)
152,000–

152,000

152,000

Unused amount

Consolidated statement of income(*1) Revenue from contracts with customers
Net sales are not presented separately from revenue from contracts with customers and other revenues.
The amount of revenue from contracts with customers is stated in “Notes (Revenue Recognition) 1.
Information on the breakdown of revenue from contracts with customers.”(*2) Gain on sale of non-current assets is as follows:(Millions of yen)
For the fiscal year ended March 31, 2024
(from April 1, 2023 to March 31, 2024)

For the fiscal year ended March 31, 2023
(from April 1, 2022 to March 31, 2023)
Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Intangible assets

3,118
125
5
24,021–

Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Intangible assets

7
125
3
339
5

Total

27,271

Total

481(*3) Loss on sale of non-current assets is as follows:(Millions of yen)
For the fiscal year ended March 31, 2024
(from April 1, 2023 to March 31, 2024)

For the fiscal year ended March 31, 2023
(from April 1, 2022 to March 31, 2023)
Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Intangible assets

25
16
1
1,669
–

Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Intangible assets

14
7
–
88
8

Total

1,713

Total

119

- 126 -

(*4) Total amount of research and development expenses included in general and administrative expenses
and manufacturing cost for the period(Millions of yen)
For the fiscal year ended March 31, 2024
(from April 1, 2023 to March 31, 2024)

For the fiscal year ended March 31, 2023
(from April 1, 2022 to March 31, 2023)
107,236

114,583(*5) Impairment losses
The MMC group recognized impairment losses on the following asset group:
For the previous fiscal year (from April 1, 2022 to March 31, 2023)(1) Outline of asset group on which impairment losses were recognized
Location

Usage

Type

Amount(Millions of yen)

Thailand, etc.
(3 locations)

Production facilities

Buildings, structures,
machinery, equipment,
vehicles, tools, furniture,
fixtures, and others

Matsue, Shimane(1 location)

Assets for rent

Land

86

Idle assets

Buildings, structures,
machinery, equipment,
vehicles, tools, furniture,
fixtures, land and others

422

Kyoto, Kyoto, etc.
(4 locations)

Total

4,505

5,015

(2) Grouping method of assets
Assets used in production are grouped mainly by business company and sales related assets aregrouped mainly by business unit. In addition, assets leased to others and idle assets are treated as
individual asset groups.
(3) Circumstances leading to recognition of impairment losses
Due to deterioration of market conditions, etc., the book value of some assets was reduced to therecoverable amount.
(4) Method of computing the recoverable amountThe recoverable amount is determined by the higher amount of the net selling value or the value
in use. The net selling value is reasonably computed using the appraisal value based on the realestate appraisal standard, the assessed value of the inheritance tax based on the road rating, andother values. The value in use is computed based on the future cash flows (discount rate is mainly
12.2%).
The recoverable amount of idle assets is computed using the net selling value and those idle assets
which are substantially difficult to sell are assessed as net selling value of zero.

- 127 -

(5) Amount of impairment losses
The breakdown of impairment losses of 5,015 million yen is as follows:(Millions of yen)
211
4,361
292
120
29
5,015

Buildings and structures
Machinery, equipment and vehicles
Tools, furniture and fixtures
Land
Other
Total

For the fiscal year under review (from April 1, 2023 to March 31, 2024)
This information is omitted because it is immaterial.
(*6) Gain on liquidation of subsidiaries
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
This resulted from completing the liquidation of Pajero Manufacturing Co., Ltd., a domestic
consolidated subsidiary of MMC.
(*7) Loss related to Russian operations
For the previous fiscal year (from April 1, 2022 to March 31, 2023)
The MMC group engages in assembling and selling finished vehicles through one consolidated
subsidiary and multiple affiliates in Russia; however, MMC has decided not to resume productionin Russia.
Consequently, the MMC group will sustain many costs, including valuation loss of the affiliates’
shares; valuation and disposal loss of components for production; and detention charges forcontainers. Thus, we have recorded an extraordinary loss of 19,928 million yen.
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
The MMC group engages in assembly, production, and sale of finished vehicles in Russia throughone consolidated subsidiary and multiple affiliates in Russia; however, MMC has decided not toresume production in Russia.
As a result, MMC has incurred costs such as disposal loss of components for production and arrears
for the return of containers, etc., and has recorded extraordinary losses of 1,313 million yen.

- 128 -

(*8) Loss related to Chinese operations
For the previous fiscal year under review (from April 1, 2022 to March 31, 2023)
In China, although MMC group affiliate GAC Mitsubishi Motors Co., Ltd. has engaged in
manufacturing and retail, its financial circumstances have taken a turn for the worse amid lagging
volume-based sales due to the lingering effects of the COVID-19 pandemic, intensifying
competition, and rapid changes in the market, for example semiconductor shortages and the
popularization of electric vehicles. To address these conditions, based on the results of discussion
among our shareholders, we resolved at the Board of Directors meeting to increase the frameworkof support for MMC’s funding commitment to GAC Mitsubishi Motors Co., Ltd. We are unlikely
to recover funding in GAC Mitsubishi Motors Co., Ltd. Therefore, we recorded loss related toChinese operations amounting to 10,504 million yen, our estimate of irrecoverable loans that willarise in the future.
Furthermore, based on the results of future discussion among our shareholders, there may also be
additional funding support from the fiscal year ending March 31, 2024 onward.
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
Although GAC Mitsubishi Motors Co., Ltd., which was an affiliate of the MMC group in China,
tried to recover its sales volume by releasing a new model in December 2022, it continued to fallshort of its plan and has suspended its production since March 2023 in order to adjust its inventory.
In light of this situation, we decided to fundamentally review our China strategy and implement
structural reforms.
To this end, we recorded a loss related to Chinese operations of 23,002 million yen, which included
compensation to related business partners and suppliers, and other associated costs.

- 129 -

Consolidated statement of comprehensive income(*1) Reclassification adjustments and tax effects concerning other comprehensive income(Millions of yen)
For the fiscal year
For the fiscal year
ended March 31, 2023 ended March 31, 2024
(from April 1, 2022 to (from April 1, 2023 toMarch 31, 2023)
March 31, 2024)
Valuation difference on available-for-sale securities:
Amount arising during the period
Reclassification adjustments(2,498)

1,456

2,274

–

Before tax-effect adjustment
Amount of tax effects

(223)
88

1,456
(389)

Valuation difference on available-for-sale securities

(134)

1,067

Deferred gains or losses on hedges:
Amount arising during the period
Reclassification adjustments(15,665)
15,658(7,474)
6,776

Before tax-effect adjustment
Amount of tax effects

(6)
(3)

(698)
(34)

Deferred gains or losses on hedges

(10)

(732)

20,773–36,1352,253

Foreign currency translation adjustment:
Amount arising during the period
Reclassification adjustments
Foreign currency translation adjustment

20,77338,388Remeasurements of defined benefit plans:
Amount arising during the period(1,892)

27,107

Reclassification adjustments

1,275

1,609

Before tax-effect adjustment
Amount of tax effects(617)(1,053)28,7173

Remeasurements of defined benefit plans(1,670)28,720

7,366
18

7,037
(2,256)

7,384

4,781

26,342

72,224

Share of other comprehensive income of entities accounted for using
equity method:Amount arising during the period
Reclassification adjustments
Share of other comprehensive income of entities accounted forusing equity method
Total other comprehensive income- 130 -

Consolidated statement of changes in net assets
For the previous fiscal year (from April 1, 2022 to March 31, 2023)
1. Class and total number of issued shares and class and number of treasury shares
At the beginningof the period

Increase(Thousands of shares)
At the endof the period

Decrease

Issued shares:
Common stock

1,490,282––

1,490,282

Total

1,490,282––

1,490,282

2,430

0

473

1,956

Treasury shares:
Common stock (Note)

2,430
0
473
1,956
Total
(Notes) 1. The number of shares of common stock under treasury shares includes the Company’s shares held by the Board
Incentive Plan (BIP) Trust (1,137 thousand shares at the beginning of the period and 1,103 thousand shares at theend of the period).
2. The increase of 0 thousand shares in the number of shares of common stock under treasury shares was due to theincrease of 0 thousand shares from the purchase of shares of less than one unit.
3. The decrease of 473 thousand shares in the number of shares of common stock under treasury shares is due to thedecrease of 439 thousand shares from the exercise of share acquisition rights and the decrease of 34 thousand sharesfrom the delivery of treasury shares from the Board Incentive Plan (BIP) Trust.

2. Share acquisition rights and treasury share acquisition rights

Classification

Reportingcompany

Type of shares
Number of shares that will be issued upon exercise ofComponentsthat will be issued
share acquisition rights (shares)
Balance at theof shareupon exercise of
end of the periodacquisition
share acquisition At the beginning Increase Decrease At the end (Millions of yen)rightsof the periodof the periodrightsStock option

Common stock

–

–

–

–

29

–

–

–

–

–

29

Total

3. Dividends(1) Dividend payment
Not applicable.
(2) Dividends for which record date is in the fiscal year under review with effective date in thefollowing fiscal year
Resolution date

Class ofsharesTotal amount ofdividend

Source ofdividend

Dividend pershare (Yen)Record date

Effective date(Millions of yen)
Ordinary General
Meeting ofCommonRetained
7,447
5.0
March 31, 2023 June 23, 2023
Shareholders heldstock
earnings
on June 22, 2023
(Note) The total amount of dividend based on the resolution at the Ordinary General Meeting of Shareholders on June 22,2023 includes 5 million yen of dividend for the shares of MMC held by the Board Incentive Plan (BIP) Trust.

- 131 -

For the fiscal year under review (from April 1, 2023 to March 31, 2024)
1. Class and total number of issued shares and class and number of treasury shares
At the beginningof the period

Increase(Thousands of shares)
At the endof the period

Decrease

Issued shares:
Common stock

1,490,282––

1,490,282

Total

1,490,282––

1,490,282

1,956

1,766

248

3,473

Treasury shares:
Common stock (Note)

1,956
1,766
248
3,473
Total
(Notes) 1. The number of shares of common stock under treasury shares includes the Company’s shares held by the Board
Incentive Plan (BIP) Trust (1,103 thousand shares at the beginning of the period and 2,668 thousand shares at theend of the period).
2. The increase of 1,766 thousand shares in the number of shares of common stock under treasury shares is due to theincrease of 0 thousand shares from the purchase of shares less than one unit and the increase of 1,766 thousand
shares from the delivery of shares from the Board Incentive Plan (BIP) Trust.
3. The decrease of 248 thousand shares in the number of shares of common stock under treasury shares is due to thedecrease of 47 thousand shares from the exercise of share acquisition rights and the decrease of 201 thousand sharesfrom the delivery of shares from the Board Incentive Plan (BIP) Trust.

2. Share acquisition rights and treasury share acquisition rights

Classification

Reportingcompany

Type of shares
Number of shares that will be issued upon exercise ofComponentsthat will be issued
share acquisition rights (shares)
Balance at theof shareupon exercise of
end of the periodacquisition
share acquisition At the beginning Increase Decrease At the end (Millions of yen)rightsof the periodof the periodrightsStock option

Common stock

–

–

–

–

23

–

–

–

–

–

23

Total

3. Dividends(1) Dividend payment
Total amountResolution dateOrdinary General
Meeting of
Shareholders heldon June 22, 2023

Class ofsharesCommonstockof dividend(Millions of
yen)
7,447

Dividend pershare (Yen)Record date

Effective date

Source ofdividend

5.0

March 31, 2023

June 23, 2023

Retainedearnings

Board of Directors
meeting held on
CommonSeptember 30, December 25,
Retained
7,447
5.0
November 28,
stock
2023
2023
earnings
2023(Notes) 1. The total amount of dividend based on the resolution at the Ordinary General Meeting of Shareholders on June 22,2023 includes 5 million yen of dividend for the shares of MMC held by the Board Incentive Plan (BIP) Trust.
2. The total amount of dividend based on the resolution at the Board of Directors on November 28, 2023 includes 4
million yen of dividend for the shares of MMC held by the Board Incentive Plan (BIP) Trust.

- 132 -

(2) Dividends for which record date is in the fiscal year under review with effective date in thefollowing fiscal year
Resolution date

Class ofsharesTotal amount ofdividend

Source ofdividend

Dividend pershare (Yen)Record date

Effective date(Millions of yen)
Ordinary General
Meeting ofCommonRetained
7,447
5.0
March 31, 2024 June 21, 2024
Shareholders heldstock
earnings
on June 20, 2024
(Note) The total amount of dividend based on the resolution at the Ordinary General Meeting of Shareholders on June 20,2024 includes 13 million yen of dividend for the shares of MMC held by the Board Incentive Plan (BIP) Trust.

Consolidated statement of cash flows(*1) Reconciliation of cash and cash equivalents at end of period and the amount recorded in the
consolidated balance sheet(Millions of yen)
For the fiscal year ended
For the fiscal year ended
March 31, 2023
March 31, 2024
(from April 1, 2022 to March 31, 2023) (from April 1, 2023 to March 31, 2024)
Cash and deposits
Time deposits with maturities of more than
three months
Cash and cash equivalents- 133 -

595,961

674,234

(30)

(29)

595,930

674,204

Lease transactions
1. Lessees’ accounting(1) Finance lease transactions and right of use assets
Finance lease transactions without ownership transfer for MMC and its domestic consolidated
subsidiaries and right of use assets for the overseas consolidated subsidiaries
1) Details of leased assets
Property, plant and equipment
Mainly land for a plant use (“Land”) and sales facilities (“Buildings and structures, net”) in theautomobile business2) Depreciation method of leased assets
As noted in “4. Accounting policies, (2) Depreciation and amortization method for significant
depreciable and amortizable assets” under “Material basis of the preparation of consolidated
financial statements.”(2) Operating lease transactions
Future minimum lease payments required under non-cancellable operating lease transactions(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Due within one year

2,895

2,892

Due after one year

11,8008,908

14,695

11,801Total

2. Lessors’ accounting(1) Operating lease transactions
Future minimum lease payments required under non-cancellable operating lease transactions(Millions of yen)
As of March 31, 2023

As of March 31, 2024

Due within one year

6,059

7,591

Due after one year

9,501

11,027

15,56018,619Total- 134 -

Financial instruments
1. Overview of financial instruments(1) Our policy for managing financial instruments
MMC group’s capital management policy is to limit its investments to low-risk financial products
and to obtain required funds mainly through bank borrowings. We use derivative instruments tohedge interest rate, foreign currency and similar risks, and we do not enter into any speculativetransactions.
(2) Nature and risks of financial instruments and our risk management structure
Trade receivables, which includes “Notes and accounts receivable – trade, and contract assets,” areexposed to the credit risk of our customers. To manage this risk, in accordance with MMC group’s
credit control rules, each group company monitors the financial condition of its major customers, aswell as managing the due dates and outstanding balances of the receivables by customer.
Trade receivables denominated in foreign currency are exposed to foreign currency risk, but forward
foreign exchange contracts and others are used to hedge a portion of the position after netting foreign
currency denominated payables.
Some investment securities are exposed to the risk of market price fluctuation. However, suchsecurities are composed of mainly the stocks of companies with which MMC group has business
relationships.
Trade payables, which include notes and accounts payable - trade, and electronically recorded
obligations - operating, are mostly expected to be settled within one year. Some of them aredenominated in foreign currency and exposed to foreign currency risk, but forward foreign exchange
contracts and others are used to hedge a portion of the position after netting foreign currency
denominated receivables.
Floating rate of borrowings are exposed to interest rate risk. For some of the borrowings, derivativetransactions (interest rate swaps) may be used as hedging instruments on an individual loan contract
basis to hedge the interest payable fluctuation risk.
Certain intercompany loans are exposed to foreign currency risk, however forward foreign exchange
contracts and others may be used as hedging instruments for some of these loans.
In order to mitigate counterparty risks, MMC group enters into derivative transactions only withhighly rated financial institutions.
Trade payables and borrowings are exposed to liquidity risk. Each group company manages theserisks by preparing cash flow projections and other similar tools.
(3) Supplementary explanation on fair value of financial instruments
In “2. Fair value of financial instruments,” contractual amounts, etc. for derivative transactions
themselves do not indicate market risk on the derivative transactions.

- 135 -

2. Fair value of financial instruments
The carrying amount, fair value, and the difference between the carrying amount and the fair valueof the financial instruments are as follows.
For the previous fiscal year (as of March 31, 2023)(Millions of yen)
Carrying amount(1) Finance receivables(2) Investment securities (*2)
Available-for-sale securities
Total assets(1) Long-term borrowings
Total liabilities
Derivative transactions (*3)

Fair value

Difference

226,042

223,713(2,328)2,529
228,572
321,147
321,147
1,260

2,529
226,243
321,166
321,166
1,260–(2,328)1919–(*1) The fair values of “Cash and deposits,” “Notes and accounts receivable - trade, and contract assets,” “Notes andaccounts payable - trade,” “Electronically recorded obligations - operating,” “Short-term borrowings,” “Commercial
papers,” and “Accounts payable - other, and accrued expenses,” approximate the carrying amounts as they are settled
within a short period of time, hence presentation of the figures is omitted.
(*2) Stocks, etc., without a readily determinable market price are not included in “(2) Investment securities.” The
consolidated balance sheet amounts of these financial instruments are as follows.
(Millions of yen)
For the fiscal year ended MarchClassification
31, 2023(As of March 31, 2023)
92,831

Unlisted shares and shares of subsidiaries and associates(*3) The amount of the receivable or payable arising from derivative transactions is presented on a net basis.

For the fiscal year under review (as of March 31, 2024)(Millions of yen)
Carrying amount(1) Finance receivables(2) Investment securities (*2)
Available-for-sale securities
Total assets(1) Long-term borrowings
Total liabilities
Derivative transactions (*3)

Fair value

Difference

240,517

236,788(3,728)

4,223
244,741
352,394352,394(2,396)

4,223
241,012352,074
352,074(2,396)–(3,728)
(319)
(319)
–

(*1) The fair values of “Cash and deposits,” “Notes and accounts receivable - trade, and contract assets,” “Notes andaccounts payable - trade,” “Electronically recorded obligations - operating,” “Short-term borrowings,” “Commercial
papers,” and “Accounts payable - other, and accrued expenses,” approximate the carrying amounts as they are settled
within a short period of time, hence presentation of the figures is omitted.
(*2) Stocks, etc., without a readily determinable market price are not included in “(2) Investment securities.” The
consolidated balance sheet amounts of these financial instruments are as follows.
(Millions of yen)
For the fiscal year ended MarchClassification
31, 2024(As of March 31, 2024)
Unlisted shares and shares of subsidiaries and associates

99,871(*3) The amount of the receivable or payable arising from derivative transactions is presented on a net basis.

- 136 -

(Note) 1. Redemption schedule after the balance sheet date for monetary receivables and securities withmaturity dates
For the previous fiscal year (as of March 31, 2023)

Due within
one year
Deposits
Notes and accounts
receivable - trade, andcontract assets
Finance receivables
Total

Due after one
year butwithin two
years(Millions of yen)
Due after two
Due after
Due after four
years butthree years but
years but
Due after
within three
within four
within five
five years
years
years
years

594,853

–

–

–

–

–

184,633

–

–

–

–

–

70,15950,90939,66929,65524,284

11,363

849,646

50,90939,66929,65524,284

11,363For the fiscal year under review (as of March 31, 2024)

Due within
one year
Deposits
Notes and accounts
receivable - trade, andcontract assets
Finance receivables
Total

Due after one
year butwithin two
years(Millions of yen)
Due after two
Due after
Due after four
years butthree years but
years but
Due after
within three
within four
within five
five years
years
years
years

672,828

–

–

–

–

–

151,006

–

–

–

–

–

76,83950,43342,50132,356

25,695

12,690900,674

50,43342,50132,356

25,695

12,690(Note) 2. Repayment schedule after the balance sheet date for short-term loans payable, commercial papers
and long-term loans payable
For the previous fiscal year (as of March 31, 2023)

Due within
one year

Due after one Due after twoyear but
years butwithin two
within three
years
years

Due after
three years
but withinfour years(Millions of yen)
Due after four
years but
Due after five
within five
years
years

Short-term loans payable
Commercial papers
Long-term loans payable

31,33047,50073,098––
190,517––
20,120––23,532––
12,851

–
–
1,026

Total

151,929

190,517

20,12023,532

12,851

1,026

For the fiscal year under review (as of March 31, 2024)

Due within
one year

Due after one Due after twoyear but
years butwithin two
within three
years
years

Due after
three years
but withinfour years(Millions of yen)
Due after four
years but
Due after five
within five
years
years

Short-term loans payable

68,053

–

–

–

–

–

Commercial papers
Long-term loans payable

43,500224,612–51,287–36,649–30,286

–
8,934

–
623

Total

336,166

51,28736,64930,2868,934

623- 137 -

3. Matters related to the breakdown, etc., affected by the level of the fair value of financial instruments
The fair value of financial instruments is classified into the following three levels according to theobservability and importance of inputs relating to the measurement of fair value.
Level 1 fair value: Of inputs relating to the measurement of observable fair value, fair value
measured at the quoted price of assets and liabilities subject to the measurementof the said fair value determined in the active markets
Level 2 fair value: Of inputs relating to the measurement of observable fair value, fair value
measured using inputs relating to the measurement of fair value other than level
1 input
Level 3 fair value: Fair value measured using input relating to the measurement of unobservable fairvalue
When multiple inputs that significantly impact the measurement of fair value are used, fair value isclassified as the lowest priority level to which each input belongs when measuring fair value.
(1) Financial instruments recorded on the consolidated balance sheet at fair value
For the previous fiscal year (as of March 31, 2023)(Millions of yen)
Fair value

Classification
Level 1
Investment securities
Available-for-salesecurities
StocksDerivative transactions
Currencies
Total assets
Derivative transactions
Currencies
Total liabilities

Level 2

Level 3

Total

2,529

–

–

2,529

–
2,529

1,496
1,496

–
–

1,496
4,026

–
–

236
236

–
–

236
236

For the fiscal year under review (as of March 31, 2024)(Millions of yen)
Fair value

Classification
Level 1
Investment securities
Available-for-salesecurities
StocksDerivative transactions
Currencies
Total assets
Derivative transactions
Currencies
Total liabilities

Level 2

Level 3

Total

4,223

–

–

4,223

–
4,223

557
557

–
–

557
4,780

–
–

2,953
2,953

–
–

2,953
2,953

- 138 -

(2) Financial instruments other than those recorded on the consolidated balance sheet at fair value
For the previous fiscal year (as of March 31, 2023)(Millions of yen)
Fair value

Classification
Level 1––––

Finance receivables
Total assets
Long-term borrowings
Total liabilities

Level 2
223,713
223,713321,166
321,166

Level 3
–
–
–
–

Total
223,713
223,713321,166
321,166

For the fiscal year under review (as of March 31, 2024)(Millions of yen)
Fair value

Classification
Level 1
Finance receivables
Total assets
Long-term borrowings
Total liabilities

–
–
–
–

Level 2
236,788236,788352,074
352,074

Level 3
–
–
–
–

Total
236,788236,788352,074
352,074(Note) Explanation of evaluation techniques used to measure fair value and inputs relating to fair value
measurement
Investment securities
Listed stocks are measured using quoted prices. The fair value of listed stocks is classified aslevel 1 fair value as they are traded in active markets.
Derivative transactions
The fair value of derivatives transactions is classified as level 2 fair value according to the price,
etc., quoted by financial institutions with which MMC has transactions.
Finance receivables
The fair value of finance receivables is classified as level 2 fair value and measured at present
value, which is calculated by categorizing finance receivables by a certain period of time anddiscounting future cash flows by an interest rate obtained by adding credit spread to appropriate
indicators, such as government bond yields, for each credit risk category used for credit
management.
Long-term borrowings
The fair value of long-term borrowings is classified as level 2 fair value measured at present
value, which is calculated by categorizing long-term borrowings by a certain period of time anddiscounting the total amount of principal and interest by an interest rate assumed if a similar
new borrowing is made.

- 139 -

Securities
1. Available-for-sale securities
For the previous fiscal year (as of March 31, 2023)(Millions of yen)
Type
Securities whose carrying
amount exceeds theiracquisition cost

Carrying amount

StocksAcquisition cost

Difference

2,529

1,575

954

Subtotal

2,529

1,575

954

Securities whose carrying
Stocksamount does not exceed their
Subtotalacquisition cost

–

–

–

–

–

–

2,529

1,575

954

Total

For the fiscal year under review (as of March 31, 2024)(Millions of yen)
Type
Securities whose carrying
amount exceeds theiracquisition cost

Carrying amount

StocksAcquisition cost

Difference

4,223

2,125

2,098

Subtotal

4,223

2,125

2,098

Securities whose carrying
Stocksamount does not exceed their
Subtotalacquisition cost

–

–

–

–

–

–

4,223

2,125

2,098

Total

2. Available-for-sale securities soldFor the previous fiscal year (from April 1, 2022 to March 31, 2023)(Millions of yen)Type

Sales proceeds

Total gain
63

StocksTotal loss
24

10

For the fiscal year under review (from April 1, 2023 to March 31, 2024)(Millions of yen)Type
StocksSales proceeds

Total gain0

3. Securities for which impairment losses were recognized
For the previous fiscal year (from April 1, 2022 to March 31, 2023)
This information is omitted because it is immaterial.
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
This information is omitted because it is immaterial.

- 140 -

Total loss
0–

Derivative transactions
1. Derivative transactions for which hedge accounting is not applied(1) Currency-related transactions
For the previous fiscal year (as of March 31, 2023)(Millions of yen)Classification

Transaction typeNon-market
transactions

Forward foreign exchange
contracts:
Sell:
USD
JPY
Buy:
USD
JPY

Of notionalamounts, over
one year

Notional
amounts

Valuation
gain or loss

Fair value

63,637
13,499

–
–

1,349
74

1,349
74

817
19,822

–
–

(6)
(103)

(6)
(103)

–

–

1,314

1,314

Total

For the fiscal year under review (as of March 31, 2024)(Millions of yen)Classification

Transaction type

Of notionalamounts, over
one year

Notional
amounts

Valuation
gain or loss

Fair value

Forward foreign exchange

Non-market
transactions

contracts:
Sell:
USD
AUD
JPY
Buy:
USD
Total

61,99035,262
15,417

–
–
–

506

–

1

1

–

–

(1,933)(1,933)(2) Interest-related transactions
For the previous fiscal year (as of March 31, 2023)
Not applicable.
For the fiscal year under review (as of March 31, 2024)
Not applicable.

- 141 -

(2,121)
189(2)(2,121)189(2)

2. Derivative transactions for which hedge accounting is applied(1) Currency-related transactions
For the previous fiscal year (as of March 31, 2023)(Millions of yen)
Method of hedge
accounting

Notional
amounts

Of notionalamounts, over
one year

Fair value

4,848

–

60

3,329

–

(114)

–

–

(53)

Notional
amounts

Of notionalamounts, over
one year

USD

49,829

–

(828)

AUD

22,852

–

119

8,310

7,367

246

–

–

(462)

Type of transactions
Forward foreign exchange
contracts:
Sell:

Principle method

Major hedged items

Future transactions
denominated inforeign currencies

USD
Interest rate currency swap
contracts:
Buy:

Borrowings
denominated inforeign currency

USD
Total

For the fiscal year under review (as of March 31, 2024)(Millions of yen)
Method of hedge
accounting

Type of transactions
Forward foreign exchange
contracts:
Sell:

Principle method

Interest rate currency swap
contracts:
Buy:

Major hedged items

Future transactions
denominated inforeign currencies

Fair value

Borrowings
denominated inforeign currency

USD
Total

(2) Interest-related transactions
For the previous fiscal year (as of March 31, 2023)
Not applicable.
For the fiscal year under review (as of March 31, 2024)
Not applicable.

- 142 -

Retirement benefits
1. Outline of adopted retirement benefit plans
MMC and its consolidated subsidiaries have defined benefit corporate pension plans and lump-sum
payment plans as defined benefit plans, and defined contribution pension plans as defined contributionplans. Certain employees may be entitled to additional special retirement benefits, depending on theconditions for the termination of their employment. Certain consolidated subsidiaries apply a simplified
method for calculation of retirement benefits obligation.
MMC has established a retirement benefit trust for its lump-sum payment plan.
2. Defined benefit plan
(1) Adjustments between the beginning and ending balances of retirement benefit obligation(Millions of yen)
For the fiscal year ended
For the fiscal year ended
March 31, 2023
March 31, 2024
(from April 1, 2022 to March (from April 1, 2023 to March
31, 2023)
31, 2024)
Retirement benefit obligation at beginning of period
Service cost
Interest cost
Actuarial gains and losses generated
Retirement benefits paid
Prior service cost generated
Effect of foreign currency translation
Changes from the termination of plans
Other
Retirement benefit obligation at end of period

184,833
8,511
3,636(9,314)(13,008)
1
6,341
(1)

180,637
8,488
4,479
(566)
(11,345)
176
8,853
–

(362)

(157)

180,637

190,565(2) Adjustments between the beginning and ending balances of plan assets(Millions of yen)
For the fiscal year ended
For the fiscal year ended
March 31, 2023
March 31, 2024
(from April 1, 2022 to March (from April 1, 2023 to March
31, 2023)
31, 2024)
Plan assets at beginning of period
Expected return on plan assets
Actuarial gains and losses generated
Contribution from employers
Retirement benefits paid
Effect of foreign currency translation
Other

157,368
5,733(9,856)758(11,646)
6,036
(398)

147,994
6,092
28,5396,536(10,234)
8,505
(12)

Plan assets at end of period

147,994

187,422- 143 -

(3) Adjustments between the ending balances of retirement benefit obligation and plan assets and theretirement benefit liability and retirement benefit asset reported on the consolidated balance sheet
For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
Retirement benefits obligation for funded plans
Plan assets
Retirement benefits obligation for unfunded plans
Net amount of liabilities and assets reported on the
consolidated balance sheet
Retirement benefit liability
Retirement benefit asset
Net amount of liabilities and assets reported on the
consolidated balance sheet(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)

166,868(147,994)

170,890(187,422)

18,874
13,768(16,531)
19,67432,642

3,143

36,688(4,045)20,367(17,224)

32,642

3,143(4) The amounts of components of retirement benefit expenses(Millions of yen)
For the fiscal year ended
For the fiscal year ended
March 31, 2023
March 31, 2024
(from April 1, 2022 to March (from April 1, 2023 to March
31, 2023)
31, 2024)
Service cost
Interest cost
Expected return on plan assets

8,515
3,636
(5,733)

8,488
4,479
(6,092)

Amortization of actuarial gains and losses
Amortization of prior service cost
Other

1,651
(384)
(201)

1,499
(356)
(134)

Retirement benefit expenses for defined benefit plans

7,484

7,884

(5) Remeasurements of defined benefit plans
The components of remeasurements of defined benefit plans included in other comprehensive
income (before tax effects) are as follows:(Millions of yen)
For the fiscal year ended
For the fiscal year ended
March 31, 2023
March 31, 2024
(from April 1, 2022 to March (from April 1, 2023 to March
31, 2023)
31, 2024)
Prior service cost
Actuarial gains and losses
Total- 144 -

385

(531)

(1,002)

29,248(617)

28,717

(6) Remeasurements of defined benefit plans
The components of remeasurements of defined benefit plans included in accumulated othercomprehensive income (before tax effects) are as follows:
For the fiscal year ended
March 31, 2023
(As of March 31, 2023)(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)

Unrecognized prior service cost

(1,618)(1,086)

Unrecognized actuarial gains and losses

14,297(14,951)

Total

12,679(16,037)(7) Plan assets
1) Major components of plan assets
Ratio of each major component of plan assets is as follows:
For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
Bonds
Short-term funds
StocksCash and depositsLife insurance company accounts
Other
Total

For the fiscal year ended
March 31, 2024
(As of March 31, 2024)

56%
8
16
2
2
16

55%
0
16
2
2
25

100

100

2) Method for determining the long-term expected rate of return on plan assets
The long-term expected rate of return on plan assets is determined considering the expected profileof plan assets both currently and in the future, and the long-term rates of return which are expectedcurrently and in the future from the various components of those plan assets.
(8) Actuarial assumptions used
Principal actuarial assumptions
For the fiscal year ended
March 31, 2023
(As of March 31, 2023)

For the fiscal year ended
March 31, 2024
(As of March 31, 2024)

0.0% - 0.8%
2.8% - 7.2%

0.0% - 0.8%
3.0% - 7.1%

0.8% - 3.0%
4.1% - 6.6%

0.7% - 3.0%
5.1% - 6.5%

1.0% - 6.0%
0.0% - 7.5%

1.0% - 6.0%
0.0% - 9.0%

Discount rate
Domestic companies
Overseas companies
Expected rate of return
Domestic companies
Overseas companies
Expected future salary increase
Domestic companies
Overseas companies

3. Defined contribution plans
The required contribution of MMC and its consolidated subsidiaries to the defined contribution plans is
1,861 million yen for the previous fiscal year and 2,075 million yen for the fiscal year under review.

- 145 -

Stock options
1. The account and the amount of stock options charged as expenses(Millions of yen)
For the fiscal year ended
March 31, 2024
(from April 1, 2023
to March 31, 2024)

For the fiscal year ended
March 31, 2023
(from April 1, 2022
to March 31, 2023)
Selling, general and administrative expenses

20

2. Nature, size and status of changes of stock options(1) Description of stock options
The 1st Stock Options

Category and number of persons
grantedClass and number of stock options(Note)
Date of grantMembers of the Board of MMC(excluding Outside Directors): 5
persons

Common stock: 33,522 shares
July 14, 2017
The grantee must hold a position as
Member of the Board or Audit &Supervisory Board Member or
equivalent position, a position as
employee or advisor of MMC or its
subsidiaries until the date when his or
her share acquisition rights become
exercisable.

The 4th Stock Options
Members of the Board of MMC(excluding Outside Directors): 1
person1 heir of a former Member of theBoard of MMC (excluding Outside
Director)
Common stock: 47,573 shares

December 16, 2020
The grantee must hold a position as
Member of the Board or Audit &Supervisory Board Member or
equivalent position, a position as
Conditions for vesting
employee or advisor of MMC or its
subsidiaries until the date when his or
her share acquisition rights become
exercisable.
From December 16, 2020 to April 30,
Service period
From July 14, 2017 to April 30, 2020
2023
Exercise period
From May 1, 2020 to April 30, 2070
From May 1, 2023 to April 30, 2053
(Note) The figures are shown after converting into the number of shares to be granted.

- 146 -

(2) Size and status of changes of stock options
The number of stock options which existed as of the fiscal year under review is presented byconverting into the number of shares.
1) Number of stock options
The 1st Stock Options

The 4th Stock Options

Non-vested (shares)
March 31, 2023- Outstanding–

95,146

Granted––Forfeited––

Vested–95,146

Balance of non-vested––

Vested (shares)
March 31, 2023- Outstanding

33,522–

Vested–95,146

Exercised–

47,573Forfeited––

33,52247,573

Balance of non-exercised2) Prices
The 1st Stock Options

The 4th Stock Options

Exercise price (Yen)11

Average share price at exercise (Yen)–459.00517.42

126.12

Fair value price at grant date (Yen)

3. Method for estimating the fair value price of stock options granted
Not applicable.
4. Estimation of the number of stock options vested
In principle, as it is difficult to reasonably estimate the future number of forfeitures, MMC adopts themethod of only listing forfeitures that have occurred.

- 147 -

Tax-effect accounting
1. Significant components of deferred tax assets and liabilities
For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
Deferred tax assets:
Net operating losses carried forward (Note) 2
Retirement benefit liability
Excess amount over limitation of taxable allowance for
doubtful accounts
Self-disallowed accrued expenses
Liabilities related to market quality measures
Excess amount over limitation of taxable provision for
product warranties
Non-current assets (including impairment losses)
Other
Subtotal
Valuation allowance related to net operating losses carriedforward (Note) 2
Valuation allowance related to total deductible temporary
differences
Subtotal valuation allowance (Note) 1
Total deferred tax assets
Deferred tax liabilities:
Valuation difference on available-for-sale securities
Appraisal value of land based on the full fair value method
Reserve for advanced depreciation of non-current assets
Accelerated depreciation of overseas subsidiaries
Retained earnings of subsidiaries, etc.
Other
Total deferred tax liabilities(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)

310,527
23,365

303,340
14,676

2,479

1,205

14,1105,729

13,986
6,132

16,46321,076

34,842
61,53532,09655,187

469,054447,702(286,945)(265,264)(86,300)(72,354)(373,246)(337,618)

95,808110,083(301)(1,431)(139)(519)(12,116)(7,591)(749)(1,409)(114)(764)(12,938)(7,998)(22,099)(23,974)

Net deferred tax assets (liabilities)
73,708
86,109(Notes) 1. For the previous fiscal year (from April 1, 2022 to March 31, 2023)
Valuation allowance has decreased by 43,854 million yen. The decrease was mainly due to a 20,990 million
yen decrease in the valuation allowance for net operating losses carried forward and a 22,628 million yen
decrease in the valuation allowance related to total deductible temporary differences as a result of a change inthe corporate classification used to determine the recoverability of deferred tax assets.
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
Valuation allowance has decreased by 35,627 million yen. The decrease was mainly due to a 21,681 million
yen decrease in the valuation allowance for net operating losses carried forward and a 13,945 million yen
decrease in the valuation allowance related to total deductible temporary differences.
2. Net operating losses carried forward and the amount of related deferred tax assets for each carry-forward period.

- 148 -

For the previous fiscal year (as of March 31, 2023)(Millions of yen)
Due within
one year

Due after
one year but
within two
years

Due after
two years
but within
three years

Due after
three years
but withinfour years

Due after
four years
but within
five years

Due after
five years

Total

Net operating losses
carried forward (*1)

190

126,206

41,0607,534

557

134,979

310,527

Valuation allowance

142

124,51141,031

7,426

175

113,659

286,945

Deferred tax assets
48
1,695
28
108
381
21,32023,581(Notes) 1. Net operating losses carried forward are multiplied by the effective statutory tax rate.
2. Deferred tax assets of 23,581 million yen have been recorded regarding net operating losses carried forward of
310,527 million yen (multiplied by the effective statutory tax rate). These deferred tax assets of 23,581 million
yen are mainly recognized portions of net operating losses carried forward of Mitsubishi Motors North America,
Inc. of 57,723 million yen. MMC expects to record taxable income in the future, and therefore has judged thatpart of the net operating losses carried forward will be recoverable.

For the fiscal year under review (as of March 31, 2024)(Millions of yen)
Due within
one year

Due after
one year but
within two
years

Due after
two years
but within
three years

Due after
three years
but withinfour years

Due after
four years
but within
five years

Due after
five years

Total

Net operating losses
carried forward (*1)

117,875

41,081

7,471

402

30,916

105,592

303,340

Valuation allowance

105,865

41,0407,432

69

19,96090,894265,264

Deferred tax assets
12,01040
39
332
10,955
14,69838,076(Notes) 1. Net operating losses carried forward are multiplied by the effective statutory tax rate.
2. Deferred tax assets of 38,076 million yen have been recorded regarding net operating losses carried forward of
303,340 million yen (multiplied by the effective statutory tax rate). These deferred tax assets of 38,076 million
yen are mainly recognized portions of net operating losses carried forward of Mitsubishi Motors North America,
Inc. of 59,353 million yen. MMC expects to record taxable income in the future, and therefore has judged thatpart of the net operating losses carried forward will be recoverable.

- 149 -

2. The reconciliation of significant differences between the effective statutory tax rate and effective
income tax rate after application of tax-effect accounting
For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
Effective statutory tax rate
Reconciliations:Share of profit of entities accounted for using equity
methodPermanent differences
Difference of applicable tax rates of overseas
consolidated subsidiaries, etc.
Retained earnings of subsidiaries, etc.
Change in valuation allowance
Elimination of unrealized profits on inventories
Foreign tax credit
Foreign withholding taxes
Tax credit for experimental research expenses
Tax credit for increase in amount of payment in salaries,
etc.
Other
Actual effective income tax rate after application of tax-effectaccounting

30.3%

For the fiscal year ended
March 31, 2024
(As of March 31, 2024)
30.3%

2.2

(0.9)

2.1

0.3

(2.7)

(2.3)

(1.6)
(30.2)
(4.5)
(0.1)
3.9
(2.3)

0.5
(20.2)
4.6
(0.1)
1.5
(1.3)

(1.7)

(0.6)

(0.2)

(0.6)

(4.9)

11.2

3. Accounting of corporate tax, local corporate tax and tax effect accounting for these items
MMC and domestic consolidated subsidiaries have applied the group tax sharing system. Accordingly,
we conduct accounting of corporate tax and local corporate tax, or accounting and disclosure of tax
effect accounting for these items in accordance with the “Practical Solution on the Accounting andDisclosure Under the Group Tax Sharing System” (Practical Solution No. 42, August 12, 2021).
Business combinations, etc.
Not applicable.

- 150 -

Asset retirement obligations
Asset retirement obligations recorded in the consolidated balance sheet
1. Outline of asset retirement obligations
Since MMC and the MMC group enter into real estate lease contracts and have duties of restoration andremoval of harmful substances at the termination of the lease term, MMC and the MMC group record
asset retirement obligations regarding contractual and statutory duties.
2. Method of computing the amount of asset retirement obligations
The amount of asset retirement obligations is computed using the discount rate from (0.04)% to 5.55%,
assuming the estimated available period to be 1 year to 42 years.
3. Changes in total amount of asset retirement obligations
Changes in the outstanding balance of asset retirement obligations are as follows:(Millions of yen)
For the fiscal year ended
For the fiscal year ended
March 31, 2023
March 31, 2024
(from April 1, 2022 to March (from April 1, 2023 to March
31, 2023)
31, 2024)
Balance at beginning of period
Increase due to acquisition of property, plant and equipment
Adjustments associated with passage of time
Decrease due to settlement of asset retirement obligations
Other changes (decrease)

5,250
96
57
(142)
(329)

4,933
0
57
(108)
6

Balance at end of period

4,933

4,889

Investment properties
This information is omitted because it is immaterial.

- 151 -

Revenue Recognition
1. Information on the breakdown of revenue from contracts with customers
Information on the breakdown of revenue from contracts with customers is described in the “Notes(Segment Information, etc.)”
2. Information that serves as a basis for understanding revenue from contracts with customers
Information that serves as a basis for understanding revenue from contracts with customers is describedin “(Material basis of the preparation of consolidated financial statements) 4. Accounting Policies (5)Recognition standard for significant revenues and expenses.”
3. Information that facilitates understanding the amount of revenue for the fiscal year ended March 31,
2024, and following fiscal years(1) Balance, etc., of contract assets and contract liabilities
For the previous fiscal year (from April 1, 2022 to March 31, 2023)(Millions of yen)
For the fiscal year ended
March 31, 2023
(from April 1, 2022 to March 31, 2023)
Balance at beginning of period
Receivables from contracts withcustomers
contract assets

Balance at end of period

110,284

173,360

9,866

11,695

contract liabilities
19,63725,913
The amount of revenue recognized in the fiscal year ended March 31, 2023, that was included in contract liabilities as of the
beginning of the period was 15,868 million yen.

For the fiscal year under review (from April 1, 2023 to March 31, 2024)(Millions of yen)
For the fiscal year ended
March 31, 2024
(from April 1, 2023 to March 31, 2024)
Balance at beginning of period

Balance at end of period

Receivables from contracts withcustomers

173,360

145,069

contract assets

11,695

6,515

contract liabilities
25,91325,550
The amount of revenue recognized in the fiscal year ended March 31, 2024, that was included in contract liabilities as of the
beginning of the period was 15,264 million yen.

- 152 -

(2) Transaction price allocated to remaining performance obligations
MMC and its consolidated subsidiaries apply practical expedient to notes to transaction prices
allocated to remaining performance obligations and exclude contracts with an initially anticipatedcontract period of one year or less from the scope of the provision of notes. Such performanceobligations are mainly related to after-sales service and contract development in the automobile
business. The total transaction price allocated to the remaining performance obligations and theperiod during which revenue is expected to be recognized are as follows.
For the fiscal year ended March 31,2023(As of March 31, 2023)(Millions of yen)
For the fiscal year ended March 31,2024(As of March 31, 2024)

Due within one year

6,830

8,243

Due after one year

9,284

13,478

Total

16,114

21,722- 153 -

Segment information, etc.
[Segment information]
1. Overview of reportable segments
The reportable segments of the Group are components for which discrete financial information isavailable, and for which operating results are regularly reviewed by MMC’s decision making bodies
including the Board of Directors to determine resource allocation to the segments and to assess theirperformance.
The main business of the Group is automobile business, involving design, manufacturing and sales ofautomobiles and component parts. In addition, in the financial service business, we engage in sales
finance and leasing services (including property sales, etc., associated with expiration or cancellation oflease transactions) for the MMC group’s products. Accordingly, based on the types of products andservices offered, the Group determined “automobile business” and “financial service business” as tworeportable segments.
2. Calculation method of the amounts of net sales, profit or loss, assets and other items by reportablesegment
The accounting method for the reportable segments is the same as “Material basis of the preparation of
consolidated financial statements.” Intersegment sales and transfers are based on the price in the armslengths transaction.
3. Information on sales, profit or loss, assets and other items by reportable segment and information onsales breakdown
For the previous fiscal year (from April 1, 2022 to March 31, 2023)(Millions of yen)
Automobiles

Financialservices

Total

Net sales
External customers
Revenue from contracts with customers
Other revenue

2,426,066
571

11,441
20,0632,437,507
20,634

Subtotal

2,426,637

31,504

15,404

3,551

2,442,041
186,086

Intersegment sales
Total
Segment profit (loss)
Segment assets
Other items
Depreciation (*3)
Investment in equity method associates
Increase in property, plant andequipment and intangible assets (*3)

Adjustment(*1)

Grand total
(*2)

–
–

2,437,507
20,6342,458,141–

2,458,141

18,956(18,956)–

35,0562,477,098(18,956)

2,458,141

4,855

190,942(446)

190,495

1,928,456

306,098

2,234,554(33,029)2,201,524

54,852
101,899

5,279–

60,132
101,899––

60,132
101,899

85,521

14,232

99,754–99,754(Notes) 1. Adjustment represents the elimination of intersegment transactions.
2. Segment profit (loss) agrees to the amount of operating profit (loss) presented in the
consolidated statement of income.
3. Depreciation, increase in property, plant and equipment and intangible assets, include
long-term prepaid expenses and amortization thereof.

- 154 -

For the fiscal year under review (from April 1, 2023 to March 31, 2024)(Millions of yen)
Automobiles

Financialservices

Total

Net sales
External customers
Revenue from contracts with customers
Other revenue

2,754,761
539

12,77821,5112,767,539
22,050Subtotal

2,755,300

34,28916,2583,666

2,771,559

37,956

Intersegment sales
Total
Segment profit (loss)
Segment assets
Other items
Depreciation (*3)
Investment in equity method associates
Increase in property, plant andequipment and intangible assets (*3)

Adjustment(*1)

Grand total
(*2)

–
–

2,767,539
22,0502,789,589–

2,789,589

19,925(19,925)–

2,809,515(19,925)

2,789,589

187,918

4,427

192,345(1,373)

190,971

2,142,655

339,290

2,481,945(27,475)

2,454,470

62,320108,048

5,416–

67,737108,048––

67,737108,048

102,042

12,742

114,784–

114,784(Notes) 1. Adjustment represents the elimination of intersegment transactions.
2. Segment profit (loss) agrees to the amount of operating profit (loss) presented in the
consolidated statement of income.
3. Depreciation, increase in property, plant and equipment and intangible assets, include
long-term prepaid expenses and amortization thereof.

[Related information]
For the previous fiscal year (from April 1, 2022 to March 31, 2023)
1. Information by products and services
The information is omitted here, as the classifications are the same as reportable segments.

- 155 -

2. Information by geographic region(1) Net sales
Information on the breakdown of sales and revenue to external customers classified by locationsof external customers(Millions of yen)Japan

North America
The
UnitedStatesAsia
EuropeThailand

Oceania

Other

Total

Net sales
External customers
Revenue fromcontracts withcustomers
Other revenue

532,564

537,607356,967

154,204 596,998

129,997

281,839

334,292 2,437,507

20,176552,741384
537,991341
357,308––
154,204 596,998–
129,99773
281,912–
20,634334,292 2,458,141(Note) Main countries and regions outside Japan are grouped as follows:(1) North America.............. The United States, Canada, Mexico(2) Europe.......................... Germany, Spain, the Netherlands, France(3) Asia.............................. Indonesia, Thailand, the Philippines, Vietnam(4) Oceania......................... Australia, New Zealand(5) Other............................. U.A.E., Brazil(2) Property, plant and equipment
Japan

ThailandIndonesia

100,420

269,047(Millions of yen)
Total

Other

52,53532,599454,603

Supplementary information
Information on the breakdown of net sales and operating profit (loss) and revenue based on thegeographic locations of MMC and its consolidated subsidiaries
Japan

North
America

EuropeAsia

OceaniaOther954,556

530,078

151,990

501,232

281,839

17,808 2,437,507

Other revenue

20,176

384

–

–

73

Subtotal

974,733

530,463

151,990

501,232(2) Intersegment
sales

1,145,931

2,425

1,036

Total

2,120,664

532,889

Operating profit(loss)

124,091

15,421

Total(Millions of yen)Grand
Adjustment
total

Net sales(1) Externalcustomers
Revenue fromcontracts withcustomers–

2,437,507

20,634–

20,634

281,912

17,808 2,458,141–

2,458,141

662,7474– 1,812,146(1,812,146)–

153,027 1,163,980

281,917

17,808 4,270,287

3,148

49,800

9,869

–

705

(Note) Main countries and regions outside Japan are grouped as follows:(1) North America.............. The United States, Mexico, Puerto Rico
(2) Europe........................... The Netherlands(3) Asia............................... Thailand, Indonesia, the Philippines, Vietnam(4) Oceania......................... Australia, New Zealand(5) Other.............................. U.A.E.

- 156 -

203,036(1,812,146) 2,458,141(12,541)

190,495

3. Information on major customers
The information is omitted as no sales to any specific customer account for at least 10% of net sales
in the consolidated statements of income.
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
1. Information by products and services
The information is omitted here, as the classifications are the same as reportable segments.
2. Information by geographic region(1) Net sales
Information on the breakdown of sales and revenue to external customers classified by locationsof external customers(Millions of yen)Japan

North America
The
UnitedStatesAsia
EuropeOceaniaOther318,946

393,984 2,767,539

21,616
391
391
–
–
–
42
609,100
711,099 413,630 219,377 537,039
90,629 318,988(Note) Main countries and regions outside Japan are grouped as follows:(1) North America.............. The United States, Canada, Mexico(2) Europe.......................... Germany, France, Spain, the Netherlands(3) Asia.............................. The Philippines, Indonesia, Thailand, Vietnam(4) Oceania......................... Australia, New Zealand(5) Other............................. U.A.E., Brazil–
22,050393,984 2,789,589

ThailandTotal

Net sales
External customers
Revenue fromcontracts withcustomers
Other revenue

587,483

710,708

413,238

219,377 537,039

90,629(2) Property, plant and equipment
Japan

Thailand
290,400

107,109

Indonesia
65,235- 157 -

(Millions of yen)
Total

Other
35,390498,135

Supplementary information
Information on the breakdown of net sales and operating profit (loss) and revenue based on thegeographic locations of MMC and its consolidated subsidiaries
Japan

North
America

EuropeAsia

OceaniaOther1,040,863

700,226

214,628

473,065

318,945

19,810 2,767,539

Other revenue

21,616

391

–

–

42

Total

(Millions of yen)Grand
Adjustment
total

Net sales(1) Externalcustomers
Revenue fromcontracts withcustomers––

2,767,539

22,050–22,050Subtotal

1,062,480

700,617214,628

473,065

318,987

19,810 2,789,589–

2,789,589(2) Intersegment
sales

1,374,555

1,848

1,045

724,1774– 2,101,631(2,101,631)

–

Total

2,437,036

702,466

215,673 1,197,242

318,992

19,810 4,891,221

Operating profit(loss)

116,577

24,0882,281

45,933

11,552719(2,101,631) 2,789,589

201,153(10,182)

190,971(Note) Main countries and regions outside Japan are grouped as follows:(1) North America.............. The United States, Mexico, Puerto Rico
(2) Europe........................... The Netherlands(3) Asia............................... Thailand, Indonesia, the Philippines, Vietnam(4) Oceania......................... Australia, New Zealand(5) Other.............................. U.A.E.

3. Information on major customers
The information is omitted as no sales to any specific customer account for at least 10% of net sales
in the consolidated statements of income.
[Information about impairment losses on non-current assets by reportable segment]
For the previous fiscal year (from April 1, 2022 to March 31, 2023)(Millions of yen)

Impairment losses

Automobiles

Financial services

5,015

–

Total

Adjustment

Grand total
–

5,015

5,015

For the fiscal year under review (from April 1, 2023 to March 31, 2024)(Millions of yen)

Impairment losses

Automobiles

Financial services

1,294

–

Total
1,294

Adjustment

Grand total–[Information about amortization and unamortized balance of goodwill by reportable segment]
For the previous fiscal year (from April 1, 2022 to March 31, 2023)
This information is omitted because it is immaterial.
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
Not applicable.

- 158 -

1,294

[Information about the gain recognized on negative goodwill by reportable segment]
For the previous fiscal year (from April 1, 2022 to March 31, 2023)
Not applicable.
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
Not applicable.

- 159 -

Information on related party transactions
1. Transactions with related parties(1) Transactions of MMC with related parties
1) Parent company and major shareholders, etc. of MMC
For the previous fiscal year (from April 1, 2022 to March 31, 2023)
Type

Name

Other relatedcompany

Location

KanagawaNissan Motor ku,Co., Ltd.
Yokohamacity

Capital605,814millionyen

Business

Production
and sales ofautomobiles
and related
businesses

Percentage ofvoting rights
holding (held)(%)(Held)
Direct: 34.01

Relation

Mutual sharing, etc. oftechnological resources
and mutual sales of
products, etc.
Concurrent positions ofcorporate officers
Leasing of facilities, etc.

Transactions

Amount(Millionsof yen)Sales ofproducts, etc.
(*1)

213,898

Automobilepartspurchasing(*1)

193,935(*2)

Account
item
Accounts
receivable trade
Electronically recorded
obligations- operating
Notes andaccounts
payable tradeYear-endbalance(Millionsof yen)23,21561,47425,637For the fiscal year under review (from April 1, 2023 to March 31, 2024)
Type

Other relatedcompany

Name

Location

KanagawaNissan Motor ku,Co., Ltd.
Yokohamacity

CapitalBusiness

605,814millionyen

Production
and sales ofautomobiles
and related
businesses

Percentage ofvoting rights
holding (held)(%)(Held)
Direct: 34.01- 160 -

Relation

Mutual sharing, etc. oftechnological resources
and mutual sales of
products, etc.
Concurrent positions ofcorporate officers
Leasing of facilities, etc.

Transactions

Automobilepartspurchasing(*1)

Amount(Millionsof yen)253,936(*2)

Account
itemYear-endbalance(Millionsof yen)Electronically recorded
obligations- operating

65,493

Notes andaccounts
payable trade

31,438

2) Unconsolidated subsidiaries and associates, etc. of MMC
For the previous fiscal year (from April 1, 2022 to March 31, 2023)
Not applicable.
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
Type

Associate(Notes)Name

GAC
Mitsubishi
Motors Co.,
Ltd.

1.

2.
3.
4.

Location

CapitalBusiness

Hunan
Province,
China

1,947
million
CNY

Production
and sales ofautomobiles

Percentage ofvoting rights
holding (held)(%)(Held)
Direct: 30.00

Relation

Financial assistanceTransactions

Amount(Millionsof yen)Account
itemYear-endbalance(Millionsof yen)

Loans
(*3)

9,392

–

–

Underwritingof capitalincrease(*4)

32,421––

Terms and conditions of transactions and the policies on determination thereof:
Sales prices of products, etc. are determined after examination and negotiations considering market prices
and total costs.
Purchase prices of products, etc. are determined after examination and negotiations considering estimatedcosts, prices of current products, etc., and market prices for each product, etc.
The above amounts of transactions do not include transactions with consolidated subsidiaries via Nissan
Motor Co., Ltd., which were eliminated in the preparation of consolidated financial statements.
MMC determines the interest rates for the loans in a reasonable manner taking market interest rates into
consideration.
As for underwriting of capital increase, MMC makes contribution of loans in kind through a debt-equity
swap based on an agreement on price of equity restructuring concluded between shareholders. In addition,
the said company was excluded from the scope of application of the equity method and is no longer
qualified as a related party due to sale of equity interest held by MMC in the fiscal year under review. The
above amount of transaction represents the amount in the period when the said company was a related
party.

- 161 -

Per share information(Yen)
For the fiscal year ended
For the fiscal year ended
March 31, 2023
March 31, 2024
(from April 1, 2022 to March 31, (from April 1, 2023 to March 31,
2023)
2024)
Net assets per share

538.28679.45

Basic earnings (loss) per share

113.38103.97

Diluted earnings per share
113.36103.96(Notes) 1. The shares of MMC held by the “Board Incentive Plan (BIP) Trust” are included in treasury shares that are
deducted from the total number of shares outstanding at the end of the period in the calculation of “Net assets
per share.” (1,103 thousand shares for the fiscal year ended March 31, 2023, and 2,668 thousand shares for the
fiscal year ended March 31, 2024.)
In addition, for the purpose of calculating “Basic earnings (loss) per share” and “Diluted earnings per share,” theshares of MMC held by the “Board Incentive Plan (BIP) Trust” are included in treasury shares that are deductedin the calculation of the average number of shares during the period. (1,108 thousand shares for the fiscal year
ended March 31, 2023 and 1,451 thousand shares for the fiscal year ended March 31, 2024.)
2. Basis for calculation for basic earnings (loss) per share and diluted earnings per share are as follows:
For the fiscal year ended
For the fiscal year ended
March 31, 2023
March 31, 2024
(from April 1, 2022 to March 31, (from April 1, 2023 to March 31,
2023)
2024)
Basic earnings (loss) per share
Profit (loss) attributable to owners of the parent(Millions of yen)

168,730

154,709––

168,730

154,709

1,488,218

1,488,016––

Increase in number of shares of common stock(Thousands of shares)

230

89

(Of which, share acquisition rights (Thousands ofshares))

(230)

(89)

Amounts not attributable to shareholders of common
stock (Millions of yen)
Profit (loss) attributable to owners of parent pertaining
to common stock (Millions of yen)
Average number of shares of common stock
outstanding during the period (Thousands of shares)
Diluted earnings per share
Adjustment to profit attributable to owners of parent(Millions of yen)

Overview of residual shares not included in
calculation of diluted earnings per share due to lack ofdilutive effect––

Subsequent events
In a product liability lawsuit filed in the Philadelphia Court of Common Pleas, Pennsylvania, the UnitedStates, the judgment was awarded on May 6, 2024 (U.S. local time) against MMC’s North American
subsidiary, Mitsubishi Motors North America, Inc. (MMNA), ordering MMNA to pay damages in theamount of 1,010 million US dollars.
On May 28, 2024 (U.S. local time), MMNA filed an appeal against the above judgment to the Superior
Court of Pennsylvania, the United States.

- 162 -

5) Consolidated supplementary schedules
Detailed schedule of bonds payableNot applicable.
Detailed schedule of borrowings
Balance atBalance at end of
beginning of thethe fiscal year
fiscal year ended ended March 31,
March 31, 2024
2024(Millions of yen) (Millions of yen)Classification

Averageinterest
rate (%)

Due

Short-term loans payable

31,33068,0533.0–

Current portion of long-term loans payable

73,098

224,612

0.6–

Current portion of lease liabilities

3,519

3,719

4.8

–

Long-term loans payable (excluding current portion)

248,048

127,7811.3

2029 to 2030

Lease liabilities (excluding current portion)

24,785

24,6905.42025 to 2052

Other interest-bearing debt
Other (Commercial papers – current liabilities)
Other (Deposits received from employees - current

47,50043,500

0.2

–

2,750

2,566

0.5

–

1,700

1,700

0.1

–

2,282

2,216

0.0

–

liabilities)
Other (Deposits received - current liabilities)
Other (Guarantee deposits received - non-current
liabilities)

Total
435,015
498,840––(Notes) 1. The average interest rate represents the weighted-average rate applicable to the year-end balance of loans
payable.
2. The following table shows the payment schedule of long-term loans payable and lease liabilities (excluding
the current portion) within five years after the consolidated balance sheet date.
(Millions of yen)
Due after one year but Due after two years
Due after three years
Due after four years
within two years
but within three years but within four years
but within five years
Long-term loans payable

51,28736,64930,286

8,934

Lease liabilities

2,335

1,793

956

633

Detailed schedule of asset retirement obligations
In accordance with Article 92-2 of the Regulation on Consolidated Financial Statements, the scheduleof asset retirement obligations is omitted because the amounts of asset retirement obligations at the
beginning and the end of the fiscal year under review were one percent or less of the total amount ofliabilities and net assets at the beginning and the end of the fiscal year under review.

- 163 -

(2) Other
1)

Quarterly financial information and others for the fiscal year under review
First quarter(Three months ended
June 30, 2023)

Second quarter(Six months ended
September 30, 2023)

Third quarter(Nine months ended
December 31, 2023)

Full year(Fiscal year ended
March 31, 2024)

Net sales(Millions of yen)635,753

1,330,817

2,063,855

2,789,589

Profit (loss) before
income taxes(Millions of yen)

61,64593,907

139,424

180,832

Profit (loss)
attributable to ownersof parent(Millions of yen)

47,94967,489102,755

154,709

Basic earnings (loss)
per share (Yen)

32.22

45.34

69.04

103.97(Accounting period)First quarter(from April 1, 2023
to June 30, 2023)

Basic earnings (loss)
per share (Yen)

32.22(Cumulative period)

2)

Second quarter
Third quarter(from July 1, 2023
(from October 1, 2023
to September 30, 2023) to December 31, 2023)
13.12

23.70

Fourth quarter(from January 1, 2024
to March 31, 2024)
34.93

Information after the balance sheet date
There are no noteworthy matters to report.

3)

Significant lawsuits, etc.
Significant lawsuits, etc., are described in the “Notes, Consolidated balance sheet, 6 Contingent
liabilities.”- 164 -

2. Non-consolidated financial statements(1) Non-consolidated financial statements(a) Non-consolidated balance sheet(Millions of yen)
As of March 31, 2023
AssetsCurrent assets
Cash and deposits
Accounts receivable - tradeFinished goods
Work in process
Raw materials and supplies
Prepaid expenses
Short-term loans receivable
Accounts receivable - other
Other
Allowance for doubtful accounts
Total current assets
Non-current assets
Property, plant and equipment
Buildings
Structures
Machinery and equipment
VehiclesTools, furniture and fixtures
Land
Construction in progress
Total property, plant and equipment
Intangible assets
Intangible assets
Total intangible assets
Investments and other assets
Investment securities
Shares of subsidiaries and associates
Long-term loans receivable
Investments in capital of subsidiaries andassociates
Guarantee deposits
Long-term prepaid expenses
Deferred tax assets
Other
Allowance for doubtful accounts
Total investments and other assets
Total non-current assets
Total assets

(*1)

(*1)
(*1)
(*1)

(*2)
(*2)
(*2)
(*2)
(*2)

- 165 -

263,853
299,954
36,132
12,792
33,055
3,059
26,481
58,233
13,769(13,819)
733,51330,305
5,840
56,345865
38,83764,7638,071
205,028

As of March 31, 2024

(*1)

(*1)
(*1)
(*1)

(*2)
(*2)
(*2)
(*2)
(*2)

368,435
274,098
37,99314,09933,7003,326
17,99864,16325,421(975)
838,263

31,634
6,354
62,582
1,684
36,382
70,344
12,436
221,418

35,80735,807

38,77038,7706,699
185,648
157

8,394
183,353
2,251

6,321

7,733

4,990
15,90028,392
4,603(453)
252,261
493,097
1,226,610

4,950
15,947
34,6146,205(478)
262,972
523,162
1,361,425

(Millions of yen)
As of March 31, 2023
Liabilities
Current liabilities
Electronically recorded obligations - operating
Accounts payable - trade
Current portion of long-term borrowings
Lease liabilities
Accounts payable - otherAccrued expenses
Income taxes payable
Deposits received
Provision for product warranties
Provision for contingent loss
Provision for loss on guarantees
Other
Total current liabilities
Non-current liabilities
Long-term borrowings
Lease liabilities
Guarantee deposits received
Provision for retirement benefits
Asset retirement obligations
Other
Total non-current liabilities
Total liabilities
Net assets
Shareholders’ equity
Share capital
Capital surplus
Legal capital surplus
Other capital surplus
Total capital surplus
Retained earnings
Legal retained earnings
Other retained earnings
Retained earnings brought forward
Total retained earnings
Treasury shares
Total shareholders’ equity
Valuation and translation adjustments
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Total valuation and translation adjustments
Share acquisition rights
Total net assets
Total liabilities and net assets- 166 -

(*1)
(*1)

(*1)
(*1)

(*1)

(*1)

90,835248,380–
61
105,572
9,365
8,470
9,300
31,356
10,0093,859
29,302546,513150,000
94
1,754
13,825
3,788
3,635
173,098
719,611

As of March 31, 2024

(*1)
(*1)

(*1)
(*1)

(*1)

(*1)

99,740224,788
150,000
114
106,572
9,349
1,479
11,153
41,332––30,030674,559–
144
1,653
19,2183,810
4,548
29,374
703,934

284,382

284,382

118,680
84,796
203,477

118,680
84,760203,441

5,605

5,605

13,75819,363(989)
506,234

164,971
170,577(1,688)656,712

693
42
735
29
506,999
1,226,610

1,500
(745)
754
23
657,491
1,361,425

(b) Non-consolidated statement of income(Millions of yen)
For the fiscal year ended
March 31, 2023
Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Advertising and promotion expenses
Transportation costs
Provision of allowance for doubtful accounts
Remuneration, salaries and allowances for directors(and other officers)
Provision for retirement benefits
Depreciation
Research and development expenses
Other
Total selling, general and administrative expenses
Operating profit (loss)
Non-operating income
Interest and dividend income
Foreign exchange gains
Other
Total non-operating income
Non-operating expenses
Interest expenses
Other
Total non-operating expenses
Ordinary profit (loss)
Extraordinary income
Gain on sale of non-current assets
Gain on liquidation of subsidiaries
Other
Total extraordinary income
Extraordinary losses
Loss on retirement of non-current assets
Loss related to Russian operations
Loss related to Chinese operations
Other
Total extraordinary losses
Profit (loss) before income taxes
Income taxes - current
Income taxes - deferred
Total income taxes
Profit (loss)

(*1)
(*1)

(*1)
(*1)

2,348,961
2,012,223
336,737

15,15564,131(1,049)19,684
83,577(355)

29,70332,303

1,762
8,565
61,02525,956205,252
109,832

1,828
9,882
57,64230,138234,701
102,035(*1)

88,637
4,018
1,325
93,981(*1)

82,326
13,8391,044
97,210

(*1)

826
6,122
6,949
196,864

(*1)

812
7,641
8,453
190,792(*1)

23,593–
81
23,674

(*1)

657
1,831
96
2,585

(*3)
(*4)

- 167 -

2,045,567
1,730,483
315,084

For the fiscal year ended
March 31, 2024

1,610
18,58822,5693,010
45,778
174,760
15,020(29,326)(14,306)
189,066

(*2)

(*3)
(*4)

2,036
887
25,255
1,064
29,244
164,133
4,615(6,589)(1,974)
166,108

(c) Non-consolidated statement of changes in net assets(Millions of yen)
Shareholders’ equity

For the fiscal year ended
March 31, 2023

Balance at beginning of
periodSharecapital284,382

Capital surplus

Retained earnings

Legal
capitalsurplus

OthercapitalsurplusTotal
capitalsurplusLegalretainedearnings

Otherretainedearnings
Retainedearnings
brought
forwardTotal
retainedearnings

118,680

85,013

203,694

5,605(175,308)(169,702)

189,066

189,066

TreasurysharesTotalshareholders’equity(1,382)

316,991

Changes during period
Profit (loss)
Purchase of treasury
shares
Disposal of treasury
sharesExercise of shareacquisition rights
Net changes in items
other than shareholders’equityTotal changes during period
Balance at end of period

(216)

(216)

Balance at beginning of
period

(0)

7

7

385

169

–

(216)

(216)

–

189,066

189,066393

189,242284,382

118,680

84,796

203,477

5,605

13,75819,363(989)

506,234

Share
acquisitionrightsTotal net
assets195

318,125

Valuationdifference on
available-forsale
securities
939

Deferred
gains orlosses onhedges–Totalvaluation andtranslation
adjustments
939

Changes during period
Profit (loss)
Purchase of treasury
shares
Disposal of treasury
sharesExercise of shareacquisition rights
Net changes in items
other than shareholders’equity(0)–

Valuation and translation adjustments

For the fiscal year ended
March 31, 2023

189,066

189,066
(0)
7
169
(245)

42

(203)

(166)

(369)

Total changes during period

(245)

42

(203)

(166)

188,873

Balance at end of period

693

42

735

29

506,999- 168 -

(Millions of yen)
Shareholders’ equity
Capital surplus

Retained earnings

Total
retainedearnings

Share capital

Legalcapitalsurplus

Othercapitalsurplus

Total capitalsurplusLegalretainedearnings

Otherretainedearnings
Retainedearnings
brought
forward284,382

118,680

84,796

203,477

5,605

13,75819,363

Dividends of surplus(14,894)(14,894)(14,894)

Profit (loss)

166,108

166,108

166,108

For the fiscal year ended
March 31, 2024

Balance at beginning of period

Treasuryshares

(989)

Total
shareholders’equity506,234

Changes during period

Purchase of treasury shares

(785)

(785)

Disposal of treasury shares

43

43

41

6

Exercise of shareacquisition rights
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

(35)

(35)

–

–

(35)

(35)

–

151,213151,213(699)

150,478

284,382

118,680

84,760203,441

5,605

164,971

170,577(1,688)656,712Valuation and translation adjustments

For the fiscal year ended
March 31, 2024

Balance at beginning of period

Valuationdifference on
available-forsale securities
693

Deferred gains Total valuation
or losses on
and translation
hedgesadjustments
42

735

Share
acquisitionrightsTotal net assets

29

506,999

Changes during period
Dividends of surplus(14,894)

Profit (loss)

166,108

Purchase of treasury shares(785)

Disposal of treasury shares

43

Exercise of shareacquisition rights
Net changes in items otherthan shareholders’ equity
Total changes during period
Balance at end of period

6
806

(787)

18

(5)

13

806

(787)

18

(5)

150,491

1,500

(745)

754

23

657,491- 169 -

NotesSignificant accounting policy
1. Valuation basis and methods for assets(1) Securities
Shares of subsidiaries and associates:
Stated at cost determined by the moving average method.
Available-for-sale securities:
Securities, excluding shares without market value:
Carried at fair value and the cost of securities sold is computed based on the moving averagemethod. The difference between the acquisition cost and the carrying value of available-forsale securities, including unrealized gains and losses, is recognized in valuation difference on
available-for-sale securities in the accompanying balance sheet.
Shares without market value:
Carried at cost determined by the moving average method.
(2) Derivative financial instruments
Market price method(3) Inventories
Finished goods and work in process
Principally stated at cost determined by the first in first out method (the balance sheet carrying value
is reduced to recognize any deterioration of recoverability).
Raw materials and supplies
Stated at cost determined by the gross average method (the balance sheet carrying value is reduced
to recognize any deterioration of recoverability).
2. Depreciation and amortization method for non-current assets(1) Property, plant and equipment (excluding leased assets)
Property, plant and equipment are amortized using the straight line method.
The useful lives of the assets are based on the estimated lives of assets for MMC. The main useful livesof assets are as follows.
Buildings and structures

3 to 60 years

Machinery and equipment, and vehicles 3 to 23 years
Tools, furniture and fixtures

2 to 20 years

Low value depreciable assets
Assets for which the acquisition cost is equal to or more than 100,000 yen and less than 200,000 yen
are depreciated in even amounts over three years pursuant to the provisions of the Corporation Tax Act.
(2) Intangible assets (excluding leased assets)
Intangible assets are amortized using the straight line method.
Software intended for use by MMC is amortized using the straight line method over the period for which
each asset is available for use (10 years in the case of software for some major core systems; 5 years in
the case of other software).

- 170 -

(3) Leased assets
Assets recognized under finance leases that do not involve transfer of ownership to the lessee aredepreciated using the straight line method based on the contract term under the lease agreement. If aguaranteed residual value is determined in the lease agreement, the said guaranteed residual value isdeemed as the residual value of such leased assets. If the residual value is not determined, it is deemed
to be zero.
(4) Long-term prepaid expenses
Long-term prepaid expenses are amortized using the straight line method over a fixed period.
3. Allowances and provisions(1) Allowance for doubtful accounts
To prepare for losses from bad debts for trade receivables, loans, etc., an estimate of the amount ofspecific uncollectible accounts is provided as an allowance for doubtful accounts based on the historicaldefault rate for ordinary receivables, and taking into account individual collectability for specificreceivables such as doubtful receivables.
(2) Provision for product warranties
The provision for product warranties is calculated after taking into account, according to the warranty
agreements, future warranty forecasts based on past results in order to provide for the products’ afterservice costs.
(3) Provision for retirement benefits
To prepare for the payment of retirement benefits to employees, provision for retirement benefits for
employees are calculated based on the retirement benefit obligation and plan assets estimated at the endof the fiscal year under review.
Prior service cost is being amortized using the straight line method over a fixed number of years (10years) within the estimated average remaining service years of the employees at the time of incurrence.
Actuarial gains and losses are being amortized using the straight line method over a fixed number ofyears (10 years) within the estimated average remaining service years of the employees commencing
from the following fiscal year after incurrence.
When calculating retirement benefit obligation, the benefit calculation formula standard was used for
attributing the expected retirement benefits to the period until the end of the fiscal year under review.
(4) Provision for contingent loss
Sensible amounts to cover expected losses calculated based on individual risks for each contingency
and other factors are recorded to prepare for highly likely contingent loss.
(5) Provision for loss on guarantees
The provision for loss on guarantees has been made based on a reasonable estimate to prepare for loss
from exercise of guarantee liabilities.
4. Recognition standard for significant revenues and expenses
The main performance obligation of the automobile business is the sale of vehicles and parts. Revenue
is recognized when the control of goods or services is transferred to customers, such as when a vehicle
is delivered, as is the normal time when performance obligation of sales of vehicles and parts is satisfied(normal time when revenue is recognized.) In addition, alternative treatment provided for in paragraph
98 of the “Implementation Guidance on Accounting Standard for Revenue Recognition” is applied,
whereby revenue is recognized at the time of shipment; provided that a period from the time of shipment
until the time when control of the said merchandise or product is transferred to a customer is deemed tobe the normal period. In addition, payments of sales incentives to sales companies are considered to be- 171 -

a variable consideration when calculating transaction prices. The incentive amount expected to be paidin the future is deducted from sales during the period when control of goods or services is transferred.
As the purpose of a product warranty provided in connection with the sale of products, etc., is toguarantee that the product sold conforms to the specifications agreed with the customer, a productwarranty allowance is recognized corresponding to the costs associated with the said warranty.
5. Hedge accounting
Forward foreign exchange contracts:
Deferral hedge accounting (those with forecast transactions)
6. Application of the group tax sharing system
The group tax sharing system is applied.

- 172 -

Significant accounting estimates
1. Liabilities related to market quality measures
1) Amount recorded in the financial statements as of March 31, 2024
As of March 31, 2023
(Millions of yen)
Liabilities related to market
quality measures

As of March 31, 2024
(Millions of yen)

17,083

18,788(The above amount is included in accounts payable - other in the balance sheet.)2) Information on significant accounting estimates for identified items
Notes are omitted as they are identical to those made in the “Notes to Consolidated Financial
Statements, Significant accounting estimates, 1. Liabilities related to market quality measures, 2)Information on significant accounting estimates for identified items.”
2. Contingent liabilities (provision for loss on litigation)
Notes are omitted as they are identical to those made in the “Notes to Consolidated Financial
Statements, Significant accounting estimates 2. Contingent liabilities (provision for loss on
litigation).”
Additional information(Stock compensation plan)
Notes to the stock compensation plan for MMC’s Executive Officers and Corporate Officers, etc. areomitted as they are identical to those made in the “Notes to Consolidated Financial Statements, Additional
information.”- 173 -

Non-consolidated balance sheet(*1) Monetary receivables from and payables to subsidiaries and associates (except for those separately
disclosed)(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)

For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
Short-term monetary receivables

287,483

283,655

Short-term monetary payables

203,417

208,520

Long-term monetary payables

404

404

(*2) Accumulated depreciation of property, plant and equipment is as follows:(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)

For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
Accumulated depreciation of property, plant and equipment552,262

538,061

3. Guarantee obligation(1) Guarantee obligation
For the fiscal year ended March 31, 2023
(As of March 31, 2023)
Guaranteed

Guaranteedamount(Millions of yen)

MM Automobile
Schweiz AG
Mitsubishi
Corporation
Employees

Description ofguaranteed
obligation

–

–

–

–

183

For the fiscal year ended March 31, 2024
(As of March 31, 2024)(Note)

Guaranteed

Guaranteedamount(Millions of yen)

MM Automobile
Schweiz AG
Mitsubishi
Corporation
Employees

Total
183
Total
(Note) Bank loans for “Employees’ property accumulation residence fund,” etc.

877
425
147

Description ofguaranteed
obligation
Liquidation ofreceivables
Liquidation ofreceivables(Note)

1,449(2) Retroactive obligation following liquidation of accounts receivable - trade(Millions of yen)
For the fiscal year ended March 31, 2024
(As of March 31, 2024)

For the fiscal year ended March 31, 2023
(As of March 31, 2023)
693

1,565

4. Contingent liabilities
Notes are omitted as they are identical to those made in the “Notes to Consolidated Financial
Statements, Consolidated balance sheet, 6. Contingent liabilities.”- 174 -

5. Commitment line agreement
In order to prepare for increases in demand for funds and to secure funding liquidity, MMC has
concluded commitment line agreements with 20 correspondent financial institutions, in addition to
overdraft agreements.
The outstanding balance of unused commitment line as of March 31, 2024 based on this agreement is
as follows.
(Millions of yen)
For the fiscal year ended March 31,2023(As of March 31, 2023)
Total of commitment line
Outstanding balance of used commitment
line
Unused amountFor the fiscal year ended March 31,2024(As of March 31, 2024)

152,000

152,000––

152,000

152,000

Non-consolidated statement of income(*1) Transactions with subsidiaries and associates are as follows:(Millions of yen)
For the fiscal year ended
For the fiscal year ended
March 31, 2023
March 31, 2024
(from April 1, 2022 to March (from April 1, 2023 to March
31, 2023)
31, 2024)
Operating transactions:
Sales
Purchase
Non-operating transactions

1,801,944
928,024

1,883,904
1,060,924

105,434

119,640(*2) Gain on liquidation of subsidiaries
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
This resulted from completing the liquidation of Pajero Manufacturing Co., Ltd., a domestic
consolidated subsidiary of MMC.
(*3) Loss related to Russian operations
For the previous fiscal year (from April 1, 2022 to March 31, 2023)
MMC engages in assembling and selling finished vehicles through one consolidated subsidiary andmultiple affiliates in Russia; however, MMC has decided not to resume production in Russia.
Consequently, MMC will sustain many costs, including valuation loss of the subsidiaries’ shares;
valuation and disposal loss of components for production; and detention charges for containers. Thus,
we have recorded an extraordinary loss of 18,588 million yen.
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
MMC engages in assembly, production, and sales od finished vehicles in Russia through one
consolidated subsidiary and multiple affiliates in Russia; however, MMC has decided not to resume
production in Russia.
As a result, MMC has incurred costs such as disposal loss of components for production and arrears
for the return of containers, etc., and has recorded extraordinary loss of 887 million yen.

- 175 -

(*4) Loss related to Chinese operations
For the previous fiscal year (from April 1, 2022 to March 31, 2023)
In China, although MMC affiliate GAC Mitsubishi Motors Co., Ltd. has engaged in manufacturing
and retail, its financial circumstances have taken a turn for the worse amid lagging volume-based
sales due to the lingering effects of the COVID-19 pandemic, intensifying competition, and rapidchanges in the market, for example semiconductor shortages and the popularization of electricvehicles. To address these conditions, based on the results of discussion among our shareholders, weresolved at the Board of Directors meeting to increase the framework of support for MMC’s funding
commitment to GAC Mitsubishi Motors Co., Ltd.
As such, concern has developed over the collection of receivables from GAC Mitsubishi Motors Co.,
Ltd. held by MMC. Moreover, we believe that there is a strong possibility of MMC’s guarantee
obligations for the borrowings by GAC Mitsubishi Motors Co., Ltd. being executed, and furthermore
a strong possibility that the funds provided will not be able to be recovered.
As a result of the above, we have recorded loss related to Chinese operations of 22,569 million yen
under extraordinary losses, which is composed of 8,701 million yen in allowance for doubtful
accounts, 3,859 million yen in provision for loss on guarantees, and 10,009 million yen in provision
for contingent loss for the funds provided that cannot be recovered.
Furthermore, based on the results of future discussion among our shareholders, there may also be
additional funding support from the fiscal year ending March 31, 2024 onward.
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
Although GAC Mitsubishi Motors Co., Ltd., which was an affiliate of the MMC group in China,
tried to recover its sales volume by releasing a new model in December 2022, it continued to fallshort of its plan and has suspended its production since March 2023 in order to adjust its inventory.
In light of this situation, we decided to fundamentally review our China strategy and implement
structural reforms.
To this end, we recorded a loss related to Chinese operations of 25,255 million yen, which included
compensation to related business partners and suppliers, and other associated costs.

- 176 -

Securities
For the previous fiscal year (from April 1, 2022 to March 31, 2023)
The fair values of the shares of subsidiaries and affiliates (balance sheet amounts of 164,072 million
yen and 21,575 million yen for the shares of subsidiaries and those of affiliates, respectively) are notstated as they are stocks, etc., without a readily determinable market price.
For the fiscal year under review (from April 1, 2023 to March 31, 2024)
The fair values of the shares of subsidiaries and affiliates (balance sheet amounts of 161,704 million
yen and 21,649 million yen for the shares of subsidiaries and those of affiliates, respectively) are notstated as they are stocks, etc., without a readily determinable market price.
Tax-effect accounting
1. Significant components of deferred tax assets and liabilities
For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
Deferred tax assets:
Net operating losses carried forward
Excess amount over limitation of taxable allowance for
doubtful accounts
Excess amount over limitation of taxable provision for
retirement benefits
Denial of loss on valuation of subsidiaries and associates’
stocks(Millions of yen)
For the fiscal year ended
March 31, 2024
(As of March 31, 2024)

251,609

243,297

4,320

425

17,79518,457

122,396

120,996

5,171
9,491
10,317
31,10730,861

5,689
12,515
11,29828,257
19,118483,071460,057(249,933)(231,213)(203,045)(192,610)(452,978)(423,823)

Total deferred tax assets

30,092

36,233

Deferred tax liabilities:
Valuation difference on available-for-sale securities
Other

(301)
(1,398)

(651)
(967)

Total deferred tax liabilities(1,699)(1,618)Net deferred tax assets (liabilities)

28,392

34,614

Liabilities related to market quality measures
Provision for product warranties
Foreign tax credit carried forward
Non-current assets (including impairment losses)
Other
Subtotal
Valuation allowance related to net operating losses carriedforwardValuation allowance related to total deductible temporary
differences
Subtotal valuation allowance- 177 -

2. The reconciliation of significant differences between the effective statutory tax rate and effective income
tax rate after application of tax-effect accounting
For the fiscal year ended
March 31, 2023
(As of March 31, 2023)
Effective statutory tax rate
Reconciliations:Non-deductible items (entertainment expenses, etc.)
Non-taxable items (dividend income)
Foreign withholding taxes
Tax credit for experimental research expenses
Tax credit for increase in amount of payment in salaries,
etc.
Foreign tax credit
Change in valuation allowance
Other
Actual effective income tax rate after application of tax-effectaccounting

30.3%

For the fiscal year ended
March 31, 2024
(As of March 31, 2024)
30.3%

0.2
(14.3)
3.7
(2.2)

1.5
(14.4)
1.6
(1.4)

(1.6)

(0.7)

(0.1)
(22.9)(1.2)(0.1)(17.8)
(0.2)

(8.2)

(1.2)

3. Accounting of corporate tax, local corporate tax and tax effect accounting for these items
MMC has applied the group tax sharing system. Accordingly, we conduct accounting of corporate tax
and local corporate tax, or accounting and disclosure of tax effect accounting for these items inaccordance with the “Practical Solution on the Accounting and Disclosure Under the Group Tax
Sharing System” (Practical Solution No. 42, August 12, 2021).
Revenue Recognition
Information that serves as a basis for understanding revenue from contracts with customers is as stated in“Notes, Significant accounting policy, 4. Recognition standard for significant revenues and expenses.”
Subsequent events
Notes are omitted as they are identical to those made in the “Notes to Consolidated Financial Statements,
Subsequent events.”- 178 -

4) Non-consolidated supplementary schedules
Detailed schedule of non-current assets(Millions of yen)
Balance at
beginning ofcurrent
periodIncrease incurrent period

Decrease incurrent period

Buildings

136,422

3,765

134,266

Structures

36,825

1,182

37,243

Machinery and equipment

319,235

9,766

4,679

1,198

5,922
(25)
764
(0)
8,228
(0)
296

Accumulated
depreciationor
amortization
at end ofcurrent
period102,632

Tools, furniture andfixtures187,292

10,566

Land

64,763

Construction in progress

Type of assets

Property,plant andequipment

Depreciation
Carryingoramount atamortization
end of current
for current
periodperiod2,306

31,63430,889632

6,354

320,773

258,190

3,322

62,582

5,581

3,896

300

1,684

(*2) 19,025

178,834

142,452

12,40436,382

6,381

(578)
800

70,344––70,3448,071(*1) 26,309(*3) 21,944

12,436––

12,436757,291

59,170759,480538,061

18,966

221,418

Patent right608–

56,981
(603)
–

608

514

57

93

Software48,192

11,49153,894

21,4397,282

32,455

Other

7,307

10,5905,789(14)
11,496

6,400

178

25

6,222

56,10822,081

17,286(14)

60,903

22,132

7,364

38,770

VehiclesTotal property, plant and equipment

Intangible
assetsBalance at
end ofcurrent
periodTotal intangible assets(Notes) 1. The figures in parentheses in the “Decrease in current period” column represent the amounts of impairment
losses included.
2. Major changes during the fiscal year under review are as follows:(*1) Major increases in construction in progress
Passenger car production facilities
7,533 million yen
Minicar production facilities
1,542 million yen
Engine production facilities
5,618 million yen
Research and development facilities 4,628 million yen
Other facilities
6,988 million yen(*2) Major decreases in tools, furniture and fixtures
Passenger car production facilities 13,210 million yen
Minicar production facilities
1,377 million yen
Engine production facilities
968 million yen
Research and development facilities
796 million yen
Other facilities
2,674 million yen(*3) Major decreases in construction in progress
Passenger car production facilities
6,232 million yen
Minicar production facilities
1,061 million yen
Engine production facilities
4,206 million yen
Research and development facilities 1,550 million yen
Other facilities
8,895 million yen- 179 -

Detailed schedule of allowances and provisions(Millions of yen)
Balance at
beginning ofcurrent period

Increase incurrent period

Decrease incurrent period

Balance at end ofcurrent period

Allowance for doubtful accounts

14,27270

12,889

1,453

Provision for product warranties

31,35622,931

12,95541,332

Provision for contingent loss

10,00925,02035,029–Provision for loss on guarantees

3,859

–

3,859

–

Account(2) Details of major assets and liabilities
This information is omitted because MMC prepares consolidated financial statements.
(3) Other
1) Information after the balance sheet date
There are no noteworthy matters to report.
2) Significant lawsuits, etc.
Significant lawsuits, etc. are listed on “Notes, Non-consolidated balance sheet, 4. Contingent
liabilities.”- 180 -

VI. Overview of Operational Procedures for SharesFiscal year

From April 1 to March 31 of the following year

Ordinary General Meeting of
Shareholders

June of each year

Record date

March 31

Record dates for dividends ofsurplus

September 30 and March 31

Number of shares per unit

100 shares

Purchases of shares less than
one unit

Administrator ofshareholders register
administrator(Special account)
1-4-5, Marunouchi, Chiyoda-ku, Tokyo
Mitsubishi UFJ Trust and Banking Corporation, Corporate Agency Division(Special account)
1-4-5, Marunouchi, Chiyoda-ku, Tokyo
Mitsubishi UFJ Trust and Banking Corporation

Forwarding office–

Charges for purchases

Amount specifically determined as brokerage fees for the purchase and sale of shares

Address where handlingofficeA method of public notice

Public notices are published electronically. In case the method of electronic public
notice is not available due to any troubles or unavoidable circumstances, such a
notice will be given by Nihon Keizai Shimbun published in Tokyo.
[MMC’s Website Address for Public Notices](https://www.mitsubishi-motors.com/jp/investors/koukoku.html)

Special benefits to shareholders(Note)

Not applicable

According to the MMC’s Articles of Incorporation, the MMC’s shareholders of shares less than one unit shallnot be entitled to exercise the rights of shareholders in connection with such shares less than one unit other thanthose rights listed below:(1) The rights stipulated in each item of Article 189, paragraph (2) of the Companies Act(2) The rights to request an acquisition of shares with put option(3) The rights to receive an allotment of offered shares or offered share acquisition rights- 181 -

VII. Reference Information of Reporting Company
1. Information about parent company, etc. of reporting company
MMC has no parent company, etc. as prescribed in Article 24-7, paragraph (1) of the Financial Instruments
and Exchange Act.
2. Other reference information
MMC filed the following documents between the beginning of the fiscal year under review and the datewhen this Annual Securities Report was filed.
(1) Annual Securities Report and Accompanying Documents and Confirmation Letter
FY2022 (from April 1, 2022 to March 31, 2023)(2) Amendment Report of Annual Securities Report and Confirmation Letter
Submitted to the Director-General of the Kanto Local Finance Bureau on June 21, 2024
The Amendment Report of Annual Securities Report for FY2022 (from April 1, 2022 to March 31,2023) and Confirmation Letter thereof(3) Internal Control Report and Accompanying Documents
Submitted to the Director-General of the Kanto Local Finance Bureau on June 23, 2023
(4) Quarterly Securities Reports and Confirmation Letter
First Quarter of FY2023 (from April 1, 2023 to June 30, 2023)
Submitted to the Director-General of the Kanto Local Finance Bureau on August 3, 2023
Second Quarter of FY2023 (from July 1, 2023 to September 30, 2023)
Submitted to the Director-General of the Kanto Local Finance Bureau on November 13, 2023
Third Quarter of FY2023 (from October 1, 2023 to December 31, 2023)
Submitted to the Director-General of the Kanto Local Finance Bureau on February 7, 2024
(5) Correction Report of Quarterly Securities Report and Confirmation Letter
Submitted to the Director-General of the Kanto Local Finance Bureau on December 4, 2023
The Correction Report and its Confirmation Letter for the Quarterly Securities Report for the firstquarter of FY2023 (from April 1, 2023 to June 30, 2023)(6) Extraordinary Report
Submitted to the Director-General of the Kanto Local Finance Bureau on June 26, 2023
The Extraordinary Report according to the provision of Article 24-5, paragraph (4) of the Financial
Instruments and Exchange Act and Article 19, paragraph (2), item (ix)-2 (results of exercise of voting
rights at the general meetings of shareholders) of the Cabinet Office Order on Disclosure of Corporate
Affairs.
Submitted to the Director-General of the Kanto Local Finance Bureau on June 29, 2023
The Extraordinary Report according to the provision of Article 24-5, paragraph (4) of the Financial
Instruments and Exchange Act and Article 19, paragraph (2), item (xii) (events giving significant
impact on financial position, operating results and conditions of cash flow) of the Cabinet Office
Order on Disclosure of Corporate Affairs.
Submitted to the Director-General of the Kanto Local Finance Bureau on October 25, 2023
The Extraordinary Report according to the provision of Article 24-5, paragraph (4) of the Financial
Instruments and Exchange Act and Article 19, paragraph (2), item (xii) and (xix) (events giving- 182 -

significant impact on financial position, operating results and conditions of cash flow) of the Cabinet
Office Order on Disclosure of Corporate Affairs.
Submitted to the Director-General of the Kanto Local Finance Bureau on February 27, 2024
The Extraordinary Report according to the provision of Article 24-5, paragraph (4) of the Financial
Instruments and Exchange Act and Article 19, paragraph (2), item (ix) (changes of the representative
executive officers) of the Cabinet Office Order on Disclosure of Corporate Affairs.
Submitted to the Director-General of the Kanto Local Finance Bureau on March 11, 2024
The Extraordinary Report according to the provision of Article 24-5, paragraph (4) of the Financial
Instruments and Exchange Act and Article 19, paragraph (2), item (xii) (events giving significant
impact on financial position, operating results and conditions of cash flow) of the Cabinet Office
Order on Disclosure of Corporate Affairs.
Submitted to the Director-General of the Kanto Local Finance Bureau on May 13, 2024
The Extraordinary Report according to the provision of Article 24-5, paragraph (4) of the Financial
Instruments and Exchange Act and Article 19, paragraph (2), item (xiv) (a suit filed against a
consolidated subsidiary company) of the Cabinet Office Order on Disclosure of Corporate Affairs.

- 183 -

B. Information on Guarantors for the Company
Not applicable.

- 184 -

Independent Auditors’ Audit Report and Internal Control Audit Report(English Translation)

June 21, 2024

The Board of Directors
MITSUBISHI MOTORS CORPORATION
Ernst & Young ShinNihon LLC
Tokyo, Japan
Hirohisa Fukuda
Designated and Engagement Partner
Certified Public Accountant
Takeshi Saida
Designated and Engagement Partner
Certified Public Accountant
Taichi Muto
Designated and Engagement Partner
Certified Public Accountant<Consolidated financial statements audit>
OpinionWe have audited, pursuant to the provisions of Article 193-2, paragraph (1) of the Financial Instruments and Exchange Act ofJapan, the consolidated financial statements included in “Financial Information,” which consist of the consolidated balance
sheet, consolidated statement of income, consolidated statement of comprehensive income, consolidated statement of changes
in net assets, consolidated statement of cash flows, material basis of the preparation of consolidated financial statements andother notes, and consolidated supplementary schedules of MITSUBISHI MOTORS CORPORATION (“MMC”) for the fiscal
year ended March 31, 2024 (April 1, 2023 through March 31, 2024).
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated
financial position of MMC and its consolidated subsidiaries as of March 31, 2024, and their consolidated financial performanceand cash flows for the fiscal year then ended in accordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements sectionof our report. We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of thefinancial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
As described in “Subsequent events,” in a product liability lawsuit filed in the Philadelphia Court of Common Pleas,
Pennsylvania, the United States, the judgment was awarded on May 6, 2024 (U.S. local time) against MMC’s North American
subsidiary, Mitsubishi Motors North America, Inc. (MMNA), ordering MMNA to pay damages in the amount of 1,010 million
US dollars.
Our opinion is not modified in respect of these matters.
Key Audit Matters
Key audit matters are matters which in the auditor’s professional judgment are considered to be particularly important in theaudit of the consolidated financial statements for the fiscal year under review. Key audit matters are matters that were dealt
with in the process of undertaking the audit and forming the opinion for the entire consolidated financial statements, and we
do not represent the individual opinion of such matters.

Liabilities related to market quality measures
Description of the Key Audit Matter and Reason for
Determining the Matter

How We Addressed the Matter in Our Audit

As stated in the Notes “Significant accounting estimates,”

The Accounting Auditors primarily conducted the

MMC recorded 20,925 million yen of liabilities related tomarket quality measures in the fiscal year ended March 31,
2024. Such liabilities related to market quality measures
are included in accounts payable - other, and accrued
expenses in the consolidated balance sheet.

following audit procedures in relation to the liabilities
related to market quality measures.

MMC reasonably estimates the future expenses formeasures relating to the voluntary recall and repair of soldproducts that are non-compliant under an individual
country’s regulatory requirements concerning safety andthe environment. In cases where such expenditures arelikely to be incurred and can be reasonably estimated, theMMC group calculates future expenses, considering
expenses to be incurred per unit, number of units,occurrence rate of recall and repair of subject vehicles, andother factors.
The significant assumption used in the calculation of
future expenses is the occurrence rate, which is based on
past experience and other factors by sales region andvehicle age. However, due to the long estimation period,
the complexities and uncertainties of the estimatedcalculations are high and are based on significant
judgments of management. In addition, in the event oflarge-scale recalls, remedial measures, etc., due to productdefects or failures, the recording of significant liabilities
due to market quality measures may seriously impact theconsolidated financial statements. Furthermore, tocomprehensively reflect the expenses relating to market
quality measures determined following the end of the
fiscal year, whether or not there are such cases need to bepromptly identified with the impact on the consolidated
financial statements evaluated.
Therefore, the Accounting Auditors determined that suchmatters are key audit matters.











Evaluated the comprehensive recording ofliabilities related to market quality measures andthe effectiveness of the preparation andoperations for internal controls relating to such
estimates.
To investigate the completeness of liabilities
related to market quality measures, asked
questions to the quality control division of eachcountry overseas in response to market quality
measures, inspected minutes of meetings forbodies such as the Board of Directors andimportant approval/decision documents relating
to market quality measures, and inspected public
information such as submissions to the Ministryof Land, Infrastructure, Transport and Tourism
and press releases, etc.
To evaluate the assumptions used in calculating
future expenses, investigated the consistency ofthe occurrence rate and the expenses per unit withmaterials that substantiate estimates such as forthe results of similar projects.
To evaluate the effectiveness of the process for
estimating liabilities related to market quality
measures, the amount recorded for liabilities
related to market quality measures at the end of
the previous fiscal year is compared to actual
expenses.
Investigated the assumptions used in calculating
the completeness of the liabilities related tomarket quality measures and future expenses inlight of the details for the market quality
measures determined following the end of the
fiscal year and up until the day on which theconsolidated financial statements were submitted.

Contingent liabilities for a product liability lawsuit in the United States
Description of the Key Audit Matter and Reason for
Determining the Matter

How We Addressed the Matter in Our Audit

As stated in (6) Contingent liabilities in the Notes to

The Accounting Auditors primarily conducted theconsolidated balance sheet, MMC has been cooperatingwith regard to various lawsuits, tax inquiries by tax
authorities, administrative researches by regulatory
agencies, etc., in the course of developing its business invarious countries around the world.

following audit procedures in relation to the contingent
liabilities related to the litigation.

While some of these have recorded provisions for loss on
litigation based on estimated future losses, others have acertain degree of likelihood that loss would occur going
forward, but it is not possible to make a reasonableestimation of such loss for the future at this point in time.
Therefore, MMC has not recorded any provisions withregard to the latter.
As described in the said note, in a product liability lawsuit
filed in the Philadelphia Court of Common Pleas,
Pennsylvania, the United States in November 2018, thejudgment was awarded on May 6, 2024 (U.S. local time)against MMC’s North American subsidiary, Mitsubishi
Motors North America, Inc. (MMNA), ordering MMNA
to pay damages in the amount of 1,010 million US dollars.
On May 28, 2024 (U.S. local time), MMNA filed an
appeal against the above judgment to the Superior Courtof Pennsylvania, the United States.
It is difficult for management to predict the outcome ofthis litigation, and the judgment of the likelihood of loss
from this litigation and the possibility to reasonably
estimate the amount of future losses may significantly
affect the consolidated financial statements.
Therefore, the Accounting Auditors determined that suchmatters are key audit matters.









To understand the facts and the progress of thelawsuit, asked questions to the legal division andinspected the relevant document pertaining to thisjudgment.
To evaluate the reasonableness of thedetermination of the likelihood of loss and thepossibility to reasonably estimate the amount of
future losses, received a statement from thecompany regarding investigative proceedings on
the need for recognizing provisions, discussedwith MMC’s management its views on theconsequences of this lawsuit, and obtained aManagement Representation Letter.
To evaluate the reasonableness of thedetermination of the likelihood of loss and thepossibility to reasonably estimate the amount of
future losses, performed a confirmation processwith MMC’s legal counsel regarding the MMC’sview on the consequences of this lawsuit.
To assess MMC’s view on the consequences ofthis lawsuit, engaged outside legal experts whom
we retain.

Other Information
Other information comprises information contained in the Annual Securities Report other than consolidated financial
statements, non-consolidated financial statements, and audit report of the consolidated financial statements and the nonconsolidated financial statements. Management is responsible for the preparation and disclosure of the other information. In
addition, the responsibility of the Audit Committee is to oversee the execution concerning establishment and operation of theCompany’s reporting process of the other information, and the Directors’ execution of their duties.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Audit Committee for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordancewith accounting principles generally accepted in Japan, and for such internal control as management determines is necessary
to enable the preparation of consolidated financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue asa going concern and disclosing, as required by accounting principles generally accepted in Japan, matters related to going
concern.
The Audit Committee is responsible for overseeing the performance of duties by Executive Officers and Directors regarding
the development and operation of the Group’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole are free frommaterial misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected
to influence the economic decisions of users taken on the basis of these consolidated financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the consolidated financial statements, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate
to provide a basis for our opinion.
 Consider internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances
for our risk assessments, while the purpose of the audit of the consolidated financial statements is not expressing an opinion
on the effectiveness of the Group’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to
draw attention in our auditor’s report to the related disclosures in the consolidated financial statements or, if such disclosures
are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of ourauditor’s report. However, future events or conditions may cause the Group to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the consolidated financial statements, including the disclosures,and whether the consolidated financial statements represent the underlying transactions and events in a manner that
achieves fair presentation in accordance with accounting principles generally accepted in Japan.
 Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities within
the Group to express an opinion on the consolidated financial statements. We are responsible for the direction, supervisionand performance of the group audit. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a report that we have complied with the ethical requirements in Japan regarding
independence, on matters that may be reasonably thought to impact our independence, as well as cases where countermeasures
have been established to eliminate obstructions to our independence or cases where safeguards have been applied to reducethese obstructions to allowable levels.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance in theaudit of the consolidated financial statements of the fiscal year under review and are therefore the key audit matters. We describe
these matters in the auditor’s report unless law or regulations precludes public disclosure about the matter or when, in extremelyrare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of such communication.

<Internal control audit>
OpinionWe also have audited, pursuant to the provisions of Article 193-2, paragraph (2) of the Financial Instruments and Exchange
Act of Japan, the internal control report as of March 31, 2024 of MMC.
In our opinion, the internal control report referred to above, which represents that the internal control over financial reportingof MMC as of March 31, 2024 is effective, presents fairly, in all material respects, the result of management’s assessment oninternal control over financial reporting in conformity with standards for assessment of internal control over financial reporting
generally accepted in Japan.
Basis for Opinion
We conducted our internal control audit in accordance with auditing standards for internal control over financial reporting
generally accepted in Japan. Our responsibilities under auditing standards for internal control over financial reporting aredescribed in the Auditor’s Responsibilities for Audit of the Internal Control section of our report. We are independent of MMC
and its consolidated subsidiaries in accordance with the ethical requirements that are relevant to our audit of the internal control
report in Japan, and we have fulfilled our ethical responsibilities in accordance with these requirements. We believe that wehave obtained sufficient and appropriate audit evidence to support our audit opinion.
Responsibilities of Management and Audit Committee for the Internal Control ReportManagement is responsible for designing and operating internal control over financial reporting, and for the preparation andfair presentation of the internal control report in accordance with standards for assessment of internal control over financial
reporting generally accepted in Japan.
The Audit & Supervisory Board is responsible for supervising and inspecting the provision and status of operation of internal
control over financial reporting.
Internal control over financial reporting may not prevent or detect misstatements.
Auditor’s Responsibilities for Audit of the Internal Control
Our responsibilities are to obtain reasonable assurance about whether the internal control report is free from material
misstatement and to issue an auditor’s report of internal control that expresses our opinion on the internal control report basedon our audit from an independent point of view.
In accordance with auditing standards for internal control over financial reporting generally accepted in Japan, we exercise
professional judgment and maintain professional skepticism throughout the audit. Our audit of the internal control involves thefollowing: We perform auditing procedures to obtain audit evidence about the results of the assessment of internal control overfinancial reporting in the internal control report. The procedures selected depend on our judgment as the Independent
Auditor, including the significance of effects on reliability of financial reporting.
 We evaluate the overall internal control report presentation, including the appropriateness of the scope, procedures andresult of the assessment determined and presented by management.
 We obtain sufficient and appropriate audit evidence about the results of the assessment of internal control over financial
reporting in the internal control report. We are responsible for the direction, supervision and performance of the audit of
the internal control report. We remain solely responsible for our audit opinion.
We communicate with the Audit Committee regarding the planned scope and timing of the audit of the internal control andsignificant findings of the audit of the internal control, significant deficiencies in internal control that we identified requiring
disclosure, results of the correction of such deficiencies and other matters required by auditing standards for internal control.
We also provide the Audit Committee with a report that we have complied with the ethical requirements in Japan regarding
independence, on matters that may be reasonably thought to impact our independence, as well as cases where countermeasures
have been established to eliminate obstructions to our independence or cases where safeguards have been applied to reducethese obstructions to allowable levels.
<Compensation-related information>
The amounts of compensation paid to us and other firms in the same network as us for audit attestation services and non-audit
work for MMC and its subsidiaries are included in (3) Status of audits of Information about corporate governance, etc. inInformation about Reporting Company.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed
pursuant to the provisions of the Certified Public Accountants Act of Japan.
(Notes) 1. The English translation has no legal force and is provided for convenience only.
2. The original version of the Independent Auditors’ Audit Report presented above is kept separately by MMC (the filing company of the Annual Securities
Report.)
3. XBRL data is not included in the scope of audit.

Independent Auditors’ Audit Report(English Translation)
June 21, 2024
The Board of Directors
MITSUBISHI MOTORS CORPORATION
Ernst & Young ShinNihon LLC
Tokyo, Japan
Hirohisa Fukuda
Designated and Engagement Partner
Certified Public Accountant
Takeshi Saida
Designated and Engagement Partner
Certified Public Accountant
Taichi Muto
Designated and Engagement Partner
Certified Public Accountant<Financial statements audit>
OpinionWe have audited, pursuant to the provisions of Article 193-2, paragraph (1) of the Financial Instruments and Exchange Act ofJapan, the non-consolidated financial statements included in “Financial Information,” which consist of the non-consolidatedbalance sheet, non-consolidated statement of income, non-consolidated statement of changes in net assets, significant
accounting policy and other notes, and non-consolidated supplementary schedules of MITSUBISHI MOTORSCORPORATION (“MMC”) for FY2023 (April 1, 2023 through March 31, 2024).
In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position and resultsof operations applicable to the fiscal year ended March 31, 2024, in accordance with accounting principles generally acceptedin Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan. Our responsibilities under thosestandards are further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our report.
We are independent of MMC in accordance with the ethical requirements that are relevant to our audit of the financial
statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believethat the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Emphasis of Matter
As described in “Subsequent events,” in a product liability lawsuit filed in the Philadelphia Court of Common Pleas,
Pennsylvania, the United States, the judgment was awarded on May 6, 2024 (U.S. local time) against MMC’s North American
subsidiary, Mitsubishi Motors North America, Inc. (MMNA), ordering MMNA to pay damages in the amount of 1,010 million
US dollars.
Our opinion is not modified in respect of these matters.
Key Audit Matters
Key audit matters are matters which in the auditor’s professional judgment are considered to be particularly important in theaudit of the financial statements for the fiscal year under review. Key audit matters are matters that were dealt with in theprocess of undertaking the audit and forming the opinion for the entire financial statements, and we do not represent theindividual opinion of such matters.
Liabilities Related to Market Quality Measures
As stated in the Notes “Significant accounting estimates,” MMC recorded 18,788 million yen of liabilities related to market
quality measures in the fiscal year under review.
Descriptions of the “Key Audit Matter and Reason for Determining the Matter,” as well as “How We Addressed the Matter in
Our Audit,” for this matter are omitted since the details are the same as the key audit matters (Liabilities related to market
quality measures) described in the auditor’s report to the consolidated financial statements.

Contingent liabilities for a product liability lawsuit in the United States
As stated in (4) Contingent liabilities in the Notes to balance sheet, in a product liability lawsuit filed in the Philadelphia Courtof Common Pleas, Pennsylvania, the United States in November 2018, the judgment was awarded on May 6, 2024 (U.S. localtime) against MMC’s North American subsidiary, Mitsubishi Motors North America, Inc. (MMNA), ordering MMNA to pay
damages in the amount of 1,010 million US dollars.
Descriptions of the “Key Audit Matter and Reason for Determining the Matter,” as well as “How We Addressed the Matter in
Our Audit,” for this matter are omitted since the details are the same as the key audit matters (Contingent liabilities related toa product liability lawsuit in the United States) described in the auditor’s report to the consolidated financial statements.
Other Information
Other information comprises information contained in the Annual Securities Report other than the consolidated financial
statements, the non-consolidated financial statements, and the audit report of the consolidated financial statements and the nonconsolidated financial statements. Management is responsible for the preparation and disclosure of the other information. In
addition, the responsibility of the Audit Committee is to oversee the execution concerning establishment and operation of theCompany’s reporting process of the other information, and the Directors’ execution of their duties.
Our opinion on the financial statements does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial statements, our responsibility is to read the other information and, in doing so,
consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in
the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact.
We have nothing to report in this regard.
Responsibilities of Management and Audit Committee for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting
principles generally accepted in Japan, and for such internal control as management determines is necessary to enable thepreparation of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is responsible for assessing MMC’s ability to continue as a going concern
and disclosing, as required by accounting principles generally accepted in Japan, matters related to going concern.
The Audit Committee is responsible for overseeing the performance of duties by Executive Officers and Directors regarding
the development and operation of MMC’s financial reporting process.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Misstatements can arise
from fraud or error and are considered material if, individually or in the aggregate they could reasonably be expected toinfluence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgment andmaintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design andperform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide
a basis for our opinion.
 Consider internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances
for our risk assessments, while the purpose of the audit of the financial statements is not expressing an opinion on theeffectiveness of MMC’s internal control.
 Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
 Conclude on the appropriateness of management’s use of the going concern basis of accounting and, based on the audit
evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on
MMC’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw
attention in our auditor’s report to the related disclosures in the financial statements or, if such disclosures are inadequate,
to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report.
However, future events or conditions may cause MMC to cease to continue as a going concern.
 Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether
the financial statements represent the underlying transactions and events in a manner that achieves fair presentation inaccordance with accounting principles generally accepted in Japan.
We communicate with the Audit Committee regarding, among other matters, the planned scope and timing of the audit andsignificant audit findings, including any significant deficiencies in internal control that we identify during our audit.
We also provide the Audit Committee with a report that we have complied with the ethical requirements in Japan regarding
independence, on matters that may be reasonably thought to impact our independence, as well as cases where countermeasures
have been established to eliminate obstructions to our independence or cases where safeguards have been applied to reducethese obstructions to allowable levels.
From the matters communicated with the Audit Committee, we determine those matters that were of most significance in theaudit of the financial statements of the fiscal year under review and are therefore the key audit matters. We describe thesematters in the auditor’s report unless law or regulations precludes public disclosure about the matter or when, in extremely rare
circumstances, we determine that a matter should not be communicated in our report because the adverse consequences ofdoing so would reasonably be expected to outweigh the public interest benefits of such communication.
<Compensation-related information>
Compensation-related information is presented in the auditor’s report to the consolidated financial statements.
Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in MMC which is required to be disclosed pursuant
to the provisions of the Certified Public Accountants Act of Japan.
(Notes) 1. The English translation has no legal force and is provided for convenience only.
2. The original version of the Independent Auditors’ Audit Report presented above is kept separately by MMC (the filing company of the Annual Securities
Report.)
3. XBRL data is not included in the scope of audit.

[Cover page]
Document title:

Internal Control Report (“Naibutousei-Houkokusho”)

Clause of stipulation:

Article 24-4-4, paragraph (1) of the Financial Instruments and Exchange Act

Place of filing:

Director-General of the Kanto Local Finance Bureau

Filing date:June 21, 2024

Company name:

三菱自動車工業株式会社 (Mitsubishi Jidosha Kogyo Kabushiki Kaisha)Company name in English:

MITSUBISHI MOTORS CORPORATION

Title and name ofrepresentative:

Takao Kato, Representative Executive Officer, President & CEO

Title and name of chief
financial officer:

Kentaro Matsuoka, Representative Executive Officer, Executive Vice
President (CFO)

Address of registeredheadquarters:

3-1-21, Shibaura, Minato-ku, Tokyo, Japan

Place for public inspection:

Tokyo Stock Exchange, Inc.
2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo, Japan1. Basic framework of internal control over financial reporting
Takao Kato, Representative Executive Officer, President & CEO and Kentaro Matsuoka, Representative
Executive Officer, Executive Vice President (CFO) have the responsibility for the design and operationof internal control over financial reporting of MITSUBISHI MOTORS CORPORATION (“MMC”) andmanage the design and operation of such internal control in accordance with the basic framework set forthin the document “On the Setting of the Standards and Practice Standards for Management Assessment
and Audit concerning Internal Control Over Financial Reporting (Council Opinions)” published by theBusiness Accounting Council.
Internal control aims at achieving its objectives to a reasonable extent given that all individual components
of internal control are effectively integrated, and function as a whole. Thus, it is possible that internal
control over financial reporting may not be able to completely prevent or detect false statements infinancial reporting.
2. Scope of assessment, assessment date and assessment procedure
Assessment of internal control over financial reporting was performed as of March 31, 2024 (i.e., theclosing date of the fiscal year under review) in accordance with assessment standards for internal control
over financial reporting generally accepted in Japan.
In this assessment, evaluation was first made of company-level control which would have a material
impact on the reliability of financial reporting on a consolidated basis, and based on such result, businessprocesses to be assessed were then selected. In the business process-level control assessment, theeffectiveness of internal control was assessed by analyzing the business processes in scope, identifying
key controls that would have a material impact on the reliability of the financial reporting, and evaluating
the designs and operations of these key controls.
The scope of internal control assessment for financial reporting was determined by selecting MMC,
consolidated subsidiaries and entities accounted for using equity method based on the materiality of theirimpacts on the reliability of financial reporting. The materiality of the impacts on the reliability offinancial reporting was determined in consideration of both financial and qualitative aspects, and thescope of assessment of process-level control was reasonably determined based on the result of thecompany-level control assessment, which included MMC, 14 consolidated subsidiaries, and two entities
accounted for using equity method. Also, 20 consolidated subsidiaries and 15 entities accounted for using
equity method were determined to be of minimal financial and qualitative materiality and were notincluded in the scope of evaluation of company-level control.
For the purpose of determining the scope of process-level control assessment, net sales (after eliminationof intercompany transaction) of each business site for the previous fiscal year were totaled in order basedon the business site that had the highest net sales amount, and the ten business sites that contributed
approximately two-thirds of MMC’s consolidated net sales in the previous fiscal year were designated as
significant business sites. In selected significant business sites, all business processes related to theaccounts that are closely associated with MMC’s business objectives, such as net sales, accounts
receivable - trade, and inventories were included in the scope of assessment. Furthermore, not only at the
selected significant business sites, but also at other business sites, certain other business processes with ahigh probability of there being major false statements which are related to significant accounts involving
estimates and forecasts, or related to businesses or operations dealing with high-risk transactions wereadded to the scope of assessment as “business processes having greater materiality,” taking into accounttheir impacts on financial reporting.

3. Assessment result
Based on the above mentioned assessment results, it was concluded that the internal control over financial
reporting at the end of the fiscal year under review was effective.

4. Supplementary information
Not applicable.
5. Special affairs
Not applicable.

[Cover page]
Document title:

Confirmation Letter (“Kakuninsho”)

Clause of stipulation:

Article 24-4-2, paragraph (1) of the Financial Instruments and Exchange Act

Place of filing:

Director-General of the Kanto Local Finance Bureau

Filing date:June 21, 2024

Company name:

三菱自動車工業株式会社 (Mitsubishi Jidosha Kogyo Kabushiki Kaisha)Company name in English:

MITSUBISHI MOTORS CORPORATION

Title and name ofrepresentative:

Takao Kato, Representative Executive Officer, President & CEO

Title and name of chief
financial officer:

Kentaro Matsuoka, Representative Executive Officer, Executive Vice
President (CFO)

Address of registeredheadquarters:

3-1-21, Shibaura, Minato-ku, Tokyo, Japan

Place for public inspection:

Tokyo Stock Exchange, Inc.
2-1, Nihombashi Kabutocho, Chuo-ku, Tokyo, Japan1. Appropriateness of the descriptions in this Annual Securities Report
Takao Kato, Representative Executive Officer, President & CEO and Kentaro Matsuoka, Representative
Executive Officer, Executive Vice President (CFO) of MITSUBISHI MOTORS CORPORATION, haveconfirmed that this annual securities report for FY2023 (April 1, 2023 through March 31, 2024) isreasonably and fairly stated in accordance with the Financial Instruments and Exchange Act and related
regulations.
2. Special notes
There are no noteworthy matters that are pertinent to this annual securities report.