Mitsubishi Motors Corp

Good afternoon, everyone. Thank you very much for taking time out of your busy schedule to join our results meeting today. Before I begin, I would like to express my heartfelt sympathy to everyone affected by the recent earthquake in Kumamoto and pray for the region's earliest possible recovery and for everyone's safety. First, let me briefly explain the key points of our results for the first quarter of FY2026 and our initiatives to achieve the four-year outlook. In the first quarter, despite the impact of the Middle East situations and changes in the market environment, stronger sales measures and various profit improvement initiatives delivered increases in both revenue and profit. Net income also was positive. Net sales increased by 10.8 billion yen year on year, and operating profit improved by 4.5 billion yen. I will explain the impact of the situation in the Middle East on the next page. Toward the four-year outlook, we will respond nimbly to market changes. to steadily capture sales opportunities and expand destination markets for the models launched in the second half of last year and successfully launched the all-new Peugeot to achieve our sales plan. Next, an update on the impact of the situation in the Middle East. In the first quarter, the impact was approximately 15,000 units on sales and about 10 billion yen on operating profit plus a cost impact of about 2 billion yen. mainly due to higher logistic costs. These impacts were within the 30 billion yen annual impact incorporated into our initial outlook. In the Philippines, demand slowed sharply on fuel shortages and higher prices, but the market is now showing signs of recovery. In Thailand and Australia, the sales environment remains challenging due to an accelerated shift toward electrified vehicles amid higher fuel prices as well as intensifying conditions. In addition, cost impacts from higher logistic costs and the persistently high raw material prices are expected to become more pronounced going forward. We will continue to monitor each market closely and work to minimize the impact. Now our CFO, Mr. Matsuoka, will explain the results. Matsuoka-san, please turn to page 6. First, the financial summary for the first quarter of FY2026. In addition to heightened tensions in the Middle East, persistently high fuel prices and rising interest rates softened demand in the Middle East, ASEAN, Australia and other markets, and competitions intensified. Even under these circumstances, through agile sales activities and the profit improvement initiatives, we achieved increases in both revenue and profit. Net sales rose 2% year on year. Operating profit rose 80% to 10.1 billion yen. Ordinary profit was 9.7 billion yen. And net income, 1.4 billion yen. Meanwhile, retail sales volume declined 8% to 179,000 units. Now please turn to page 7. This slide explains the factors behind the year-on-year change in first quarter operating profit. The volume mix and price of those Sales volume declined due in part to the metal lease situation. Continued price improvement absorbed part of that, resulting in a negative impact of 5.3 billion yen. Out of them, the metal lease impact was around 10 billion yen. Sales expenses had a negative impact of 6.5 billion yen, mainly from higher sales incentives in responses to intensify the market competition. Procurement and shipping costs had the negative impact of 10 billion yen. Again, the procurement and shipping costs had a negative impact of 10 billion yen. We continued our cost reduction activities, but they were not sufficient to offset inflation and higher shipping costs. Of this total, the Middle East situation accounted for a negative impact of about 2 billion yen. Meanwhile, R&D expenses contributed a positive impact, and other items were also positive, with lower U.S. tariff payments and lower environmental regulatory compliance costs. In addition, forex, with the yen trending weaker, contributed a positive 11.3 billion yen. As a result, operating profit increased by 4.5 billion yen year-on-year to 10.1 billion yen. This concludes the financial results. Next, Mr. Kishiura, our president, will explain our sales results and the situation in each market. Kishiura-san, please turn to page 8.

Now I will explain our sales results. First, I will explain our global retail sales volume results. In the first quarter of FY2026, global retail sales volume decreased by 8% year-in-year to 179,000 units, reflecting the impact of the situation in the Middle East. As shown on the slide, the regions most significantly affected by the situation were ASEAN, the Middle East, and Australia, with a total decrease of 15,000 units, excluding the impact of the Middle East Global retail sales volume was at approximately the same level of previous year, reflecting both positive and negative factors. The impact of discontinued models, mainly in Australia, Europe and North America, resulted in a decrease of 21,000 units. On the other hand, the contribution of new models, including the all-new Destinator, launched in the second half of FY2025, resulted in an increase of 17,000 units, mainly SM. In addition, increased sales of existing models, mainly North America, contributed to an increase of 4,000 units. As a result, The contribution of new models and increased sales of existing models offset the decrease resulting from the discontinued models. I will explain the situation in each region in our initiatives to further expand sales on the following pages. Please turn to page 9. First, Japan. In Japan, amid continued solid market demand, we steadily captured demand, particularly with the Delica series, resulting in sales exceeding the same period of the previous year. In particular, the enhanced brand strength Enhance brand strength following the launch of the Delica Mini has generated synergies with the Delica D5 contributing to sales growth for the overall Delica series. Going forward, we will successfully launch the all-new Pajero and further strengthen sales of our core models including the Delica series to expand our presence in the Japanese market. Please turn to page 10. Next, ASEAN and Oceania. As shown on the slide, the impact of the Middle East on markets in ASEAN and Oceania was 14,000 units. In addition, the competitive environment was more challenging than anticipated due to factors including an accelerated shift toward electrified vehicles amid higher fuel prices and aggressive pricing by Chinese OEMs. In the Philippines, Demand slowed sharply following the declaration of a state of emergency in March, resulting in a 40% decrease in sales year-on-year in April. However, sales have been on a recovery trend since May. Our product lineup that leverages our strengths continues to be well received, and some signs of improvement are beginning to emerge in the sales environment. Going forward, We will continue to avoid excessive price competition and thoroughly implement value-based sales centered on our product value and our brand. Through these initiatives, we will build momentum toward the launch of the all-new Pajero scheduled for the second half of this fiscal year. Next, Latin America and the Middle East and Africa. In Latin America, Despite an increasingly challenging competitive environment due in part to growing competition from the Chinese OEMs, we maintained sales at the previous year level through strengthened value-based sales of our core models and the continued contribution of the all-new Destinator. Going forward, we aim to further expand sales by strengthening value-based sales of our core models and expanding our product lineup. In the Middle East, although demand temporality slowed due to the impact of the situation in the Middle East, we maintained sales at the previous year level. This was supported by sufficient inventory secured from the beginning of the fiscal year and a faster than anticipated market recovery. Most recently, sales in June recovered to a level above the same month of the previous year. Going forward, we will aim for further growth by ensuring a stable supply and expanding sales of new models. Please turn to page 12. Finally, North America and Europe. In North America, demand remained solid, while the competitive environment continued to be challenging. Under these circumstances, although sales were affected by the discontinuation of the Mirage, increased sales of our core models, the Outlander and the Outlander Sport, offset the impact, enabling us to maintain sales at approximately the previous year level. Meanwhile, Sales in Europe decreased year on year due to discontinuation of a high volume model and intensified market competition. Going forward, we will strengthen value-based sales of our core models and accurately identify and respond to changes in the market environment. Through disciplined sales strategies and enhanced market activities, we will build a foundation for sustainable growth.

Please turn to page 14. This is the financial focus for FI2026.

Looking ahead, we recognize that the business environment will remain uncertain and that market competition will become even more challenging. Nevertheless, despite the challenging environment, we achieved increases in both net sales and operating profit in the first quarter and made steady progress in line with the plan. Based on this progress, we have decided to maintain the four-year outlook announced at the beginning of the fiscal year. The cost impact of higher logistics costs associated with the situation in the Middle East as well as persistently high raw material prices is expected to become more pronounced going forward. To offset these impacts, we will respond swiftly to changes in the market while steadily capturing sales opportunities. We will expand destination markets and promote sales of models launched in the second half of FY 2025, including the all-new Destinator, while increasing the sales mix of higher-margin ASEAN strategic models. In the second half of FI2026, we will launch the all-new Pajero. We will make thorough preparations for successful launch and use it to build further sales momentum. By shifting our sales mix toward new models and high-grade models and improving profit per unit, we will continue to build a business structure capable of generating solid earnings without relying excessively on volume growth. Next, I will explain our business highlights for the first quarter.

Please turn to page 16.

Here, I will explain the progress of our initiatives to expand sales of new models. Each of our priority models is progressing generally in line with the plan, and we are steadily advancing their market launches and expansion of sales regions. Despite the continued uncertainty surrounding the situation in the Middle East, we are gradually expanding the number of markets for the Odoo Destinator. Sales have remained solid, with the model ranking among the top models in its segment by market share in each market where it has been launched. We launched AGV model of the exports in Indonesia in July, following its launch in Thailand. Going forward, we will gradually expand its market in line with the demand. In the first quarter of FY2026, retail sales volume of the three ASEAN-realized models, including the expander, increased by 28% year-on-year to 42,000 units in line with the plan. These models have grown to become an important part of our lineup, accounting for 24% of our total retail sales volume. The Delica D5 and Delica Mini have maintained a high level of product freshness through ongoing market activities following their model changes. We are also making steady progress in enhancing the value of the Delica brand. That concludes my presentation. We recognize that the business environment will remain challenging and that the outlook will remain uncertain. Nevertheless, In the first quarter, we achieved increases in both net sales and operating profit and made steady progress in line with the plan. This fiscal year marks the first year of our medium to long term vision, as well as the start of our new management structure. We will steadily address the immediate challenges we face while pursuing reforms for the future and work together as one company to achieve our full year outlook and sustainable growth. Thank you very much for your attention.