Mitsubishi Motors Corporate Social Responsibility Report 2016 Contents

Mitsubishi Motors Corporate Social Responsibility Report 2016 Contents Editorial Policy Mitsubishi Motors Corporation has published its Corporate Corporate Overview・・・・・・・・・・・・・・・・・・・・ 3 Social Responsibility （CSR） Report 2016 in an effort to convey and provide stakeholders with a better understanding of the Group’s role and wide-ranging efforts Message from Top Management ・・・・・ 4 aimed at contributing to society. In addition to reinforcing and expanding interaction and communication with stakeholders, Mitsubishi Motors and its Group companies are CSR Special Feature 2016・・・・・・・・・・ 6 committed to incorporating CSR concerns in every facet of its business activities. With this in mind, steps have been taken to expand the scope of the Group’s information CSR Management・・・・・・・・・・・・・・・・・・・・・・・ 11 disclosure and to report broadly on its ongoing endeavors. Corporate Governance・・・・・・・・・・・・・・・ Scope of the Report 14 ・Basic Policy and Framework Mitsubishi Motors Corporation and its Group companies in Japan as well as certain overseas Group companies. ・Internal Control Systems Period of the Report ・Risk Management Fiscal 2015（April 2015 to March 31, 2016）・Compliance However, the Report also includes certain historical and recent data that falls outside the reporting period when considered appropriat Social Initiatives ・・・・・・・・・・・・・・・・・・・・・・・・・ 23 ・Customer Satisfaction Initiatives Publication Date ―Improvements in Product Quality and Services Japanese edition： November 2, 2016（last published in June 2015; next publication scheduled for ―Communications with Customers summer 2017）・Business Partner Initiatives English edition ： December 7, 2016（last published in September 2015; next publication ・Shareholder and Investor Initiatives scheduled for autumn 2017）・Employee Initiatives Reference Guidelines ・Corporate Citizenship In preparing this Report, the Company referred to the following guidelines: ・Sustainability Reporting Guidelines （fourth edition） Environmental Initiatives issued by the Global Reporting Initiative（GRI） Environmental Report 2016・・・・・・・・ 72 ・ISO 26000 Guidance on social responsibility issued by ・Initiative Policies the International Organization for Standardization（ISO）・Environmental Reporting Guidelines （2012 edition）・Environmental Management issued by the Ministry of the Environment of Japan ・Products and Technologies Inquiries: ・Business Activities CSR & Environmental Affairs Department ・Collaboration with Society Mitsubishi Motors Corporation 33-8, Shiba 5-chome, Minato-ku, Tokyo ・Environmental Data GRI Guideline Reference Chart・・・・・ 144 ・GRI Guideline Reference Chart ・ISO26000 Reference Table Corporate Overview Company Name Mitsubishi Motors Corporation Capital ¥165,701million Established April 22, 1970 Number of Common 983,661,919（including treasury stock） Shares Outstanding Head Office 5-33-8 Shiba, Minato-ku, Tokyo 108-8410, JAPAN Number of Employees Consolidated: 29,555 Non-consolidated: 13,033（as of March 31, 2016） Consolidated Net Sales Consolidated Operating Income, （Billions of yen） Ordinary Income and Net Income（Billions of yen） 2,267.8 2,180.7 151.6 2,093.4 141.0 135.9 138.4 1,807.3 1,815.1 129.5 123.4 118.2 104.7 93.9 72.6 67.4 63.7 60.9 38.0 23.9 2011 2012 2013 2014 2015（FY） 2011 2012 2013 2014 2015（FY） ■ Operating Income ■ Ordinary Income ■Net Income Principal Facilities PCMA Rus GAC Mitsubishi Motors Co., Ltd.（GMMC） Mitsubishi Motors R&D Mitsubishi Motors（China） Co., Ltd. of America, Inc.（MRDA） Overseas Mitsubishi Motor R&D Japan Europe GmbH（MRDE） Mitsubishi Motors Philippines Corporation（MMPC） Asian Transmission Corporation（ATC） Mitsubishi Motors Krama Yudha Indonesia（MMKI）（Production is scheduled to begin in April 2017） Mitsubishi Motors（Thailand） Co., Ltd.（MMTh） MMTh Engine Co., Ltd.（MEC） Japan Tokachi Research & Development Center Pajero Manufacturing Co., Ltd. Powertrain Plant‒Shiga Domestic Sales Network （including non-consolidated companies） Powertrain Plant‒Kyoto Kyoto Research & Development Center ● Automobile Sales Mizushima Plant Head Office Nationwide: Kanto Mitsubishi Motor Sales Powertrain Plant‒Mizushima Tokyo Design Studio Co., Ltd. and 104 other companies ● Automobile Parts Sales Okazaki Plant Nationwide: Two companies: Mitsubishi Automotive Research & Development Center Logistics Technology Co., Ltd. and Higashi Kanto EV Research & Development Center MMC Parts Sales Co., Ltd. ◉Head Office ●Vehicle Production Bases ▲Powertrain / Component Production Bases ★Development / Design Bases Improper Conduct relating to Fuel Consumption Testing I would like to express my heartfelt apology to all stakeholders for the considerable inconvenience and anxiety caused by the improper fuel consumption testing of vehicles manufactured by Mitsubishi Motors. Despite efforts to implement preventive measures in response to certain quality-related issues that have occurred since 2000, we deeply regret having again betrayed the trust of stakeholders. Since the improper testing of fuel consumption conducted at our development division became evident, we recognized the urgent need to carry out a drastic reorganization of the division and its operations. In specific terms, and based on the results of an internal investigation, steps were taken to put in place preventive measures. Moreover, Mitsuhiko Yamashita - who recently joined Mitsubishi Motors from Nissan Motor Co., Ltd., as Executive Vice President and head of the Company’s development division - took the initiative to spearhead the recently established Structure Reform Office and to implement measures aimed at preventing any recurrence of misconduct. Complementing the Company’s internal endeavors, steps were also taken to set up a Special Investigation Committee comprised entirely of outside experts. This Committee found that the problem extended beyond the development function and was endemic to the Company as a whole. In addition, certain external authorities concerned commented on a lack of top management control. Taking into account these comments from outside the Company, the management and employees of Mitsubishi Motors will work in unison to change the Company’s mindset and will spare no effort to create a corporate culture that will never allow this misconduct to happen again. Together with various reforms to the Company’s development operations, energies are being directed toward reforming and strengthening the Company’s internal control and governance systems. At the same time, particular emphasis is being placed on promoting increased awareness toward compliance through employee education and training while reviewing Companywide organizational structures and operating processes. Prioritizing Corporate Social Responsibility Having tarnished our reputation on more than one occasion, it is vital that we deliver genuine value while restoring our status as an integral member of society in order to regain the trust of stakeholders. In addition to fulfilling our corporate social responsibility, it is therefore imperative that we help to resolve the wide-ranging challenges that society continues to face through our car manufacturing activities. Our core business activity of the development and manufacture of vehicles is related to a wide and diverse range of social issues such as: ･ human and worker rights centered mainly on emerging countries, ･ the impact of burgeoning resource and energy demand on the environment, ･ progression of global warming, as well as ･ social issues stemming from population growth and the acceleration of urbanization. Taking into consideration the universal and urgent nature of these issues that confront the global community, Mitsubishi Motors is increasingly being called on to contribute its fair share and to provide solutions that help realize a sustainable society. For example, looking at the forecast growth in automobile use in emerging countries - an area in which the Company is especially strong - the need to reduce the impact that automobiles have on the environment is becoming increasingly evident. Recognizing the need to address this concern at an early stage, Mitsubishi Motors has continued to contribute to the global environment by developing a wide range of electric and plug-in hybrid vehicles (EV/PHEVs). Moving forward, the Company will work diligently to reduce the impact of automobiles on the environment by accelerating its research and development endeavors on eco-friendly EV/PHEVs and promoting fuel efficiency through improvements in engines, transmissions and other components. ー4ー At the same time, Mitsubishi Motors is fully cognizant of the need to maintain a heightened awareness toward societal concerns and reducing the impact of its business activities on the environment as a part of efforts to fulfill its corporate social responsibility. Rather than work on its own, the Company is actively seeking the support of business partners. Coordinating with suppliers, we are placing considerable weight on the “clean procurement” of components and raw materials based on proprietary supplier CSR guidelines as well as eco-friendly procurement guidelines. As we continue to engage in CSR activities, we are becoming increasingly aware of the need to cooperate with business partners including suppliers and dealerships, as well as our employees. Accordingly, we are endeavoring to develop close-knit ties with business partners while positioning efforts aimed at contributing to society as a common goal. Through these means, we are focusing on measures that help realize mutual harmony and benefit. Also, we will work with

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