OREANDA-NEWS. Mitsubishi Motors Corporation (“MMC”) that it has resolved, at its meeting of the Board of Directors held to submit proposals on the reduction of capital and capital reserve, appropriation of surplus, consolidation of stock, and partial amendment to articles of incorporation to the 44th annual shareholders meeting to be held on June 25, 2013 (“Annual Shareholders Meeting”) as described below.

MMC also resolved to submit proposals on the consolidation of stock and partial amendment to articles of incorporation to each Class Shareholders Meeting of common shareholders, 1st series class A preferred shareholders, and 1st through 4th series class G preferred shareholders.

In the mid-term business plan “Jump 2013” (FY 2011 – FY 2013) the basic policy of which is “Growth and Leap forward”, MMC has been working hard on “emerging markets/environmental initiatives” and “raising the bar on profit levels”, aiming for resumption of dividends during this mid-term business plan. As a result, in the two years up to the previous fiscal year (FY 2012), MMC achieved its initial goal for net profit, and in this last fiscal year (FY 2013), MMC has been devoting efforts to increase its earning capacity by offering new-model cars and reducing costs, aiming for achieving profits exceeding the initial goals of the mid-term business plan.

Under these circumstances, MMC, mainly to recuperate deficits and develop an environment for early resumption of dividends, will reduce its capital and capital reserve in accordance with Article 447-1 and Article 448-1 of the Company Act as described below.

MMC will reduce 491,653,816,823 yen from its capital of 657,355,059,926 yen, as a result of which its capital will be 165,701,243,103 yen. All of the reduced capital will be transferred to other capital surplus.

MMC will reduce all of its capital reserve of 433,202,059,579 yen and transfer the reduced capital reserve to other capital surplus.

MMC will only transfer the capital account in MMC's balance sheet without changing the total number of outstanding shares.

MMC will reduce 924,638,198,251 yen from its other capital surplus of 924,855,876,402 yen, which will be increased by the reduction of capital and transfer it to retained earnings brought forward to recuperate deficits in accordance with Article 452 of the Company Act.

This appropriation of surplus is conditional on the reduction of capital and capital reserve set out in “I. Reduction of capital and capital reserve” above taking effect.

MMC will transfer, to retained earnings brought forward, 924,638,198,251 yen of the 924,855,876,402 yen of other capital surplus, which will be increased by the reduction of capital and capital reserve set out in “I. Reduction of capital and capital reserve” above. As a result, other capital surplus will be 217,678,151 yen and retained earnings brought forward will be 0 yen.