NISSAN 180 Fiscal Year 2003 Review · NISSAN 180 Fiscal Year 2003 Review. NISSAN 180 / FY 2003...

NISSAN 180 / FY 2003 Review

April 26, 2004Carlos Ghosn, President & CEO

April 26, 2004Carlos Ghosn, President & CEO

NISSAN 180 NISSAN 180

Fiscal Year 2003 ReviewFiscal Year 2003 Review


AgendaAgenda

Review of FY 2003Review of FY 2003

Outlook for FY 2004Outlook for FY 2004

Post NISSAN 180Post NISSAN 180


FY 2003FY 2003

Global retail salesGlobal retail sales

2,000

2,200

2,400

2,800

(tho

usa

nd u

nits

)

3,000

2,600

FY99 FY00 FY01 FY02 FY03

3,057+10.4%3,057+10.4%

2,6332,6332,5302,530

2,5972,597

2,7712,771

First time in 13 years to pass 3 million unit salesFirst time in 13 years to pass 3 million unit salesFirst time in 13 years to pass 3 million unit sales


Retail sales by regionRetail sales by region

00

200200

400400

800800

((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

600600

JapanJapan

1,0001,000

FY 2003FY 2003

837837816816

FY02FY02 FY03FY03

Industry TIV: 5.9 million (+0.4%)

Nissan sales: 837,000 (+2.6%)

Nissan share: 14.2% (+0.3 point)


Nissan sales: 837,000 (+2.6%)



Sales performance: JapanSales performance: Japan

MarchMarch

Cube3Cube3CubeCube



00

200200

400400

800800

((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

600600

JapanJapan U.S.U.S.

1,0001,000

837837

FY 2003FY 2003

856856

726726816816

FY02FY02 FY03FY03


Nissan sales: 856,000 (+17.9%)



Nissan sales: 856,000 (+17.9%)



Sales performance: Nissan Division Sales performance: Nissan Division

MuranoMurano

ArmadaArmada Titan King CabTitan King Cab

QuestQuest

Titan Crew CabTitan Crew Cab

AltimaAltimaMaximaMaxima


Sales performance: Infiniti Division Sales performance: Infiniti Division

00

4040

8080

((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

100100

6060

FY99FY99 FY00FY00 FY01FY01 FY02FY02 FY03FY03

120120

140140 124124+29.4%+29.4%

78787171

9696

7676



00

200200

400400

800800

((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

600600

JapanJapan U.S.U.S.

1,0001,000

837837

FY 2003FY 2003

856856

726726816816

FY02FY02 FY03FY03

Nissan share: 　5.1% (+0.7 point)Nissan share: Nissan share: 　　5.1% (+0.7 point)5.1% (+0.7 point)


Source: CNW Marketing Research

FY96FY96 FY97FY97 FY98FY98 FY99FY99 FY00FY00 FY01FY01 FY02FY02 FY03FY0300

500500

1,0001,000

1,5001,500

2,0002,000

2,5002,500

3,0003,000

3,5003,500

4,0004,000($ ($ per unit)per unit)

ChryslerChrysler

GMGM

ToyotaToyota

HondaHonda

FordFord

NISSANNISSAN

Sales performance: Nissan Division Sales performance: Nissan Division

Incentive per unit in U.S.Incentive per unit in U.S.



MERCEDESMERCEDES

BMWBMW

INFINITIINFINITI

LEXUSLEXUS

Sales performance: Infiniti Division Sales performance: Infiniti Division

Incentive per unit in U.S.Incentive per unit in U.S.

Source: CNW Marketing Research

00

500500

1,0001,000

1,5001,500

2,0002,000

2,5002,500

3,0003,000

3,5003,500

4,0004,000($ ($ per unit)per unit)



00

200200

400400

800800

((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

600600

EuropeEurope

474474

1,0001,000

FY 2003FY 2003

JapanJapan U.S.U.S.

542542

837837 856856

726726816816

FY02FY02 FY03FY03

Industry TIV: 19.0 million (+0%)

Nissan sales: 542,000 (+14.4%)


Industry TIV: 19.0 million (+0%)

Nissan sales: 542,000 (+14.4%)



Sales performance: Europe Sales performance: Europe

Pickup (Navara)Pickup (Navara) X-TRAILX-TRAIL

MicraMicra



00

200200

400400

800800

((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

600600

GOM*GOM*

1,0001,000

542542

FY 2003FY 2003

EuropeEurope

474474

JapanJapan U.S.U.S.

837837 856856

726726816816 822822

755755

FY02FY02 FY03FY03

Nissan sales: 822,000 (+9.0%)Nissan sales: 822,000 (+9.0%)

*GOM: Including Mexico and Canada


Retail sales by regionRetail sales by region((t

hou

sand

uni

ts)

thou

sand

uni

ts)

FY 2003FY 2003

FY02FY02 FY03FY03

AustraliaAustralia ChinaChina

101+30.4%

101+30.4%

7777

2020

4040

8080

6060

100100

120120

62+23.1%

62+23.1%

5050


FY 2003: 10 new modelsFY 2003: 10 new models

Clipper VanClipper Van Clipper TruckClipper Truck

Cube3

PresagePresage

Titan Crew CabTitan Crew Cab ArmadaArmada

QuestQuest

Titan King CabTitan King Cab

KubistarKubistar

Z RoadsterZ Roadster


Canton new modelsCanton new models

QX56QX56

ArmadaArmada

Titan Crew CabTitan Crew Cab

QuestQuest

Titan King CabTitan King Cab


InvestmentsInvestments

Partnership with Dongfeng and Yulon Motor will support Nissan’s growth

in the Chinese car and truck markets

Partnership with Dongfeng and Yulon Motor will support Nissan’s growth

in the Chinese car and truck markets


Consolidated net revenueConsolidated net revenue

FY 2003FY 2003((b

illio

n ye

n)bi

llion

yen

)

FY99FY99 FY00FY00 FY01FY01 FY02FY02 FY03FY035,0005,000

5,5005,500

7,5007,500

6,0006,000

6,5006,500

7,0007,000

6,089.66,089.65,977.15,977.1

6,196.26,196.2

6,828.66,828.6

7,429.2+8.8%

7,429.2+8.8%


Consolidated operating profit / marginConsolidated operating profit / margin((b

illio

n ye

n)bi

llion

yen

)

290290

8282

489489

737737

00

200200

400400

800800

600600

1,0001,000

00

11

22

99

1111

44

88

7766

55

33

1010

FY 2003FY 2003

825825


4.75%4.75%

1.4%1.4%

11.1%11.1%10.8%10.8%

7.9%7.9%


500500

600600

700700

900900

800800

1,0001,000

FY03 FY03 O.P.O.P.825825

FY02FY02O.P.O.P.737.2737.2

Impact on operating profitImpact on operating profit((b

illio

n ye

n)bi

llion

yen

)

Forex-48

Forex-48


500500

600600

700700

900900

800800

1,0001,000

FY03 FY03 O.P.O.P.825825

FY02FY02O.P.O.P.737.2737.2

USD-101USD-101

EUR+29EUR+29

Others+24

Others+24


illio

n ye

n)bi

llion

yen

)


500500

600600

700700

900900

800800

1,0001,000

FY03 FY03 O.P.O.P.825825

FY02FY02O.P.O.P.737.2737.2


illio

n ye

n)bi

llion

yen

)Purchasing cost

+183Purchasing cost

+183

Salescost-72

Salescost-72

Enrichment & regulations-83Enrichment & regulations-83

G&Aand

others -27.3

G&Aand

others -27.3

Manufacturing cost

-12

Manufacturing cost

-12

R&D-54

R&D-54

Scope of consolidation

-4

Scope of consolidation

-4

Forex-48

Forex-48

Volume/mix

+185

Volume/mix

+185

Lease accounting

+20

Lease accounting

+20


FY 2003FY 2003

((billion yen)billion yen)Operating profit by regionOperating profit by region

Eliminations: FY02: +5.1, FY03: +5.4

FY03 FY03 FY02 FY02

500500

250250

0021.9

EUROPEEUROPE

49.2

*Including Mexico

500500

250250

00

GOM*GOM*

FY03 FY03 FY02 FY02

66.077.6

500500

250250

00

U.S. U.S. (+CAN)(+CAN)

242.0

FY03 FY03 FY02 FY02

351.8

FY02 FY02

JAPANJAPAN390.6

FY03FY03

500500

250250

00

352.5


FY 2003FY 2003

FY 02FY 02 FY 03FY 03 ChangeChange(billion yen)(billion yen)

Consolidated net revenueConsolidated net revenue 6,828.66,828.6 7,4297,429 +8.8%+8.8%

Consolidated operating profitConsolidated operating profit 737.2737.2 825825 +11.9%+11.9%

Ordinary profitOrdinary profit 710.1710.1 810810 +14.0%+14.0%

Net extraordinary lossNet extraordinary loss -15.5-15.5 -73.2-73.2 -57.7-57.7

Income before taxIncome before tax 694.6694.6 736.5736.5 +41.9+41.9

Net incomeNet income 495.2495.2 504504 +1.7%+1.7%

Net non-operating expenseNet non-operating expense -27.1-27.1 -15.2-15.2 -11.9-11.9


Net profitNet profit((b

illio

n ye

n)bi

llion

yen

)

495.2495.2

FY 2003FY 2003

FY99FY99 FY00FY00 FY01FY01 FY02FY02 FY03FY03--800800

300300

500500

00

100100

200200

400400

-684.4-684.4

503.7503.7

331.1331.1372.3372.3


Net cash changeNet cash change

00

100100

Operating Operating activitiesactivities

1,042.41,042.4

Investing Investing activitiesactivities

--428.0428.0

Net Net automotive automotive

debt at debt at beginningbeginning

of FY03of FY03

108.0108.0

(billion yen)

13.6

Net Net automotive automotive debt at the debt at the end of FY03end of FY03

--100100

--400400

--200200

--300300

FX rate FX rate impactimpact

--126.9126.9

200200

300300

--500500

--800800

--600600

--700700

160.3160.3

Dividend Dividend paidpaid

--74.674.6

Other Other financial financial activitiesactivities--65.965.9

--92.392.3

Treasury Treasury stockstock

Lease Lease liabilityliability

Total: Total: 268.3268.3


33

44

55

66

%

% o

f ne

t re

venu

eof

net

rev

enue

Investment in our futureInvestment in our future

Canton plant investment included from FY01


R&DR&D3.9%3.9%

3.8%3.8%4.2%4.2%

4.4%4.4%4.8%4.8%

+ 54 billion yen

3.4%3.4%

CAPEXCAPEX

4.1%4.1%

5.3%5.3%5.5%5.5%

+ 49 billion yen5.8%5.8%


0%0%

5%5%

10%10%

15%15%

20%20%

Return on invested capital (auto)Return on invested capital (auto)

25%25%

1.3%1.3%

12.7%12.7%

7.5%7.5%

19.8%19.8%

21.3%21.3%Target: 20%Target: 20%



Working capital reductionWorking capital reduction

0%0%

4%4%

8%8%

6%6%

10%10%

2%2%

7.6%

9.0%

5.8%

3.6%3.6%

7.6%


Account receivable + Inventory – Account payableAutomotive net revenue

Account receivable + Inventory – Account payableAutomotive net revenue


Dividend policyDividend policy

00

55

1010

2020

(Div

iden

d pe

r sh

are

/ ye

n)

1515

FY00FY00 FY01FY01 FY02FY02 FY04FY04

8877

2525

FY03FY03

1919

1414

2424


AgendaAgenda

Review of FY 2003 Review of FY 2003




FY 2004FY 2004

Global retail salesGlobal retail sales

2,2002,200

2,8002,800

((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

3,0003,000

2,6002,600


2,5972,597

3,0573,057

FY04FY04

3,2003,200

3,3803,380

Forecast

TIV assumption：58.8 million (+1.7%)

Nissan sales: 3.38 million (+10.5%)


TIV assumption：58.8 million (+1.7%)

Nissan sales: 3.38 million (+10.5%)


3,4003,400

2,4002,400

2,6332,6332,5302,530

2,7712,771


Retail sales in JapanRetail sales in Japan

00

200200

400400

800800

((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

1,2001,200

600600


816816714714

1,0001,000

ForecastForecast

837837

FY 2004FY 2004

870870

TIV assumption： 5.8 million (-1.1%)

Nissan sales: 870,000 (+4.0%)


TIV assumption： 5.8 million (-1.1%)

Nissan sales: 870,000 (+4.0%)



Retail sales in U.S.Retail sales in U.S.

FY 2004FY 2004

00

200200

400400

800800

((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

1,2001,200

600600


1,0001,000

ForecastForecast

856856

1,0001,000

719719 726726

TIV assumption： 16.9 million (+0.4%)

Nissan sales: 1 million (+16.8%)



Nissan sales: 1 million (+16.8%)



Retail sales in EuropeRetail sales in Europe

FY 2004FY 2004

00

200200

400400

800800

((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

1,2001,200

600600


474474493493

1,0001,000

ForecastForecast


Nissan sales: 538,000 (-0.8%)

Nissan share: 2.8% (-0.1 point)


Nissan sales: 538,000 (-0.8%)

Nissan share: 2.8% (-0.1 point)

538538542542


*GOM: Including Mexico and Canada

Retail sales in GOM*Retail sales in GOM*

FY 2004FY 2004

00

200200

400400

800800

((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

1,2001,200

600600


1,0001,000

ForecastForecast

822822

672672755755

972972

Nissan sales: 972,000 (+18.2%)Nissan sales: 972,000 (+18.2%)


FY 2004: 9 new modelsFY 2004: 9 new models

Murano Compact HB#1Luxury sedan

Compact sedanCompact MPVCompact HB#2

X-TRAIL* Pathfinder

Frontier King CabFrontier Crew Cab

XterraM45

U.S./(Canada*)JapanEurope

GOM/MexicoMinivan

Altima Compact HB

Full-size SUV

Crossover SUV Luxury coupe Compact MPV Infiniti full-size SUV


Progress toward NISSAN 180 sales Progress toward NISSAN 180 sales

2,4002,400

2,8002,800((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

3,0003,000

2,6002,600


3,2003,200

ForecastForecastOct 04Oct 04--Sep 05Sep 05

3,4003,400

3,6003,600

2,5972,597

3,057+460

3,057+4601 million units1 million units

3,6003,600

ForecastForecast

3,380+783

3,380+783

2,771+174

2,771+174


RisksAdverse foreign exchange fluctuation

Rising commodity prices

Rising interest rates

RisksAdverse foreign exchange fluctuation

Rising commodity prices

Rising interest rates

OpportunitiesNISSAN 180

OpportunitiesNISSAN 180

FY 2004FY 2004


FY 2004FY 2004

FY 03FY 03 ChangeChange

Consolidated net revenueConsolidated net revenue 7,4297,429 +10.1%+10.1%8,1768,176Consolidated operating profitConsolidated operating profit 825825 +4.3%+4.3%860860

Ordinary profitOrdinary profit 810810 +4.5%+4.5%846846Net incomeNet income 504504 +1.3%+1.3%510510

FY 04FY 04

Capital expenditureCapital expenditure 427427 +12.4%+12.4%480480

Foreign exchange assumptionForeign exchange assumption ¥113/$1¥131/€1¥113/$1¥131/€1

¥105/$1¥125/€1¥105/$1¥125/€1

ROICROIC 21.3%21.3% 20% or above20% or above

Operating marginOperating margin 11.1%11.1% -0.6 point-0.6 point10.5%10.5%

(billion yen)(billion yen)

Financial forecastFinancial forecast


FY 2004FY 2004

FY 03FY 03

Ordinary profitOrdinary profit

Net incomeNet income

Consolidated net revenueConsolidated net revenue

Consolidated operating profitConsolidated operating profit

7,4297,429825825

810810504504

8,1768,176860860

846846510510

FY 04FY 04

Capital expenditureCapital expenditure 427427 480480ROICROIC

Foreign exchange assumptionForeign exchange assumption ¥113/$1¥131/€1¥113/$1¥131/€1

¥105/$1¥125/€1¥105/$1¥125/€1

Operating marginOperating margin

(billion yen)(billion yen)

Financial forecastFinancial forecast At FY03 FX rate

At FY03 FX rate

99099011.6%11.6%

21.3%21.3% 20% or above20% or above

11.1%11.1% 10.5%10.5%


Yulon NissanMotor

Co., Ltd.Taiwan

Yulon NissanMotor

Co., Ltd.Taiwan

Dongfeng Motor

Co., Ltd. China(50%)

Dongfeng Motor

Co., Ltd. China(50%)

Nissan Motor Light Truck

Co., Ltd.Japan

Nissan Motor Light Truck

Co., Ltd.Japan

Nissan Motor Co., Ltd. Nissan Motor Co., Ltd.

Scope of consolidationScope of consolidation

Siam Nissan Automobile

Co., Ltd.Thailand

Siam Nissan Automobile

Co., Ltd.Thailand


Review of FY 2003 Review of FY 2003



AgendaAgenda


Market capitalizationMarket capitalization

00

22

33

55

((tri

llion

yen

)tr

illio

n ye

n) 44

March 31, 2004March 31, 2004

4.24.2

1.21.2

66

5.35.3

March 31, 1999March 31, 1999 March 31, 2002March 31, 2002

11


Nissan Value-Up Plan LOGOFY2005 to FY2007

Nissan Value-Up Plan LOGOFY2005 to FY2007


NISSAN ValueNISSAN Value--Up commitmentsUp commitments

Return on investmentReturn on investment

GrowthGrowth

Sustained profitabilitySustained profitability


Global sales of 4.2 million unitsGlobal sales of 4.2 million units


GrowthGrowth


00

1,0001,000

2,0002,000

((tho

usa

nd u

nits

)th

ousa

nd u

nits

) 3,0003,000

2001 2004 Forecast

2,5972,597

4,0004,000

Global sales volumeGlobal sales volume

3,3803,380

2007 Forecast

4,200 Commitment4,200 Commitment+820+820

+783+783


4%4%

5%5%

6%6%

8%8%

7%7%

FY00FY00 FY02FY02 FY03FY03 FY04FY04 FY05FY05 FY06FY06 FY07FY07FY01FY01

NISSAN 180NISSAN 180 NISSAN Value-UpNISSAN Value-UpNRPNRP

FY99FY99

4.7%4.7% 4.7%4.7%4.6%4.6%

Global market shareGlobal market share

5.0%5.0%

5.3%5.3%

7.0%7.0%


FY02FY02 FY03FY03 FY04FY04

12 10 9

FY05 – FY07FY05 – FY07

2828

Global product launchesGlobal product launches


Top operating profit margin for global automaker Top operating profit margin for global automaker

Global sales of 4.2 million unitsGlobal sales of 4.2 million unitsGrowthGrowth




FY00FY00 FY02FY02 FY03FY03 FY04FY04 FY05FY05 FY06FY06 FY07FY07FY01FY01FY99FY9900

6%6%

8%8%

12%12%

10%10%

4.75%4.75%

7.9%7.9%

10.8%10.8%

4%4%

2%2%


1.4%1.4%

Consolidated operating profit marginConsolidated operating profit margin

11.1%11.1% Top global automaker(double-digit)



Top operating profit margin for global automaker Top operating profit margin for global automaker

Global sales of 4.2 million unitsGlobal sales of 4.2 million units

Return on invested capital ≧ 20%Return on invested capital ≧ 20%

GrowthGrowth


Return on investmentReturn on investment



FY00FY00 FY02FY02 FY03FY03 FY04FY04 FY05FY05 FY06FY06 FY07FY07FY01FY01FY99FY990

10%

15%

25%

20%

7.5%7.5%

19.8%19.8%

5%

21.3%21.3%

12.7%12.7%

1.3%1.3%

Return on invested capital Return on invested capital (auto)(auto)

At or above 20%


NISSAN ValueNISSAN Value--Up breakthroughsUp breakthroughs

Infiniti global tier-1 luxury brandInfiniti global tier-1 luxury brand


ChinaChina

Infiniti global tierInfiniti global tier--1 luxury brand1 luxury brand

KoreaKoreaChinaChina

RussiaRussia

WesternEurope

WesternEurope

JapanJapanUnited StatesUnited States


Infiniti global tierInfiniti global tier--1 luxury brand1 luxury brand

JapanJapan



Infiniti global tier-1 luxury brand

Geographic expansion




Continuous development of new markets Continuous development of new markets

FY00FY00 FY02FY02 FY03FY03 FY04FY04 FY05FY05 FY06FY06 FY07FY07FY01FY01

500500

750750

1,2501,250

1,0001,000

250250

00

1,5001,500

1,7501,750

FY08FY08～～

((tho

usa

nd u

nits

)th

ousa

nd u

nits

)

MercosurMercosur

IndonesiaIndonesia

China / TaiwanChina / Taiwan

Korea / EgyptMiddle East

Thailand / ASEAN

Korea / EgyptMiddle East

Thailand / ASEAN

IndiaPakistan

IndiaPakistan



RussiaRussia

EgyptEgypt

AfricaAfrica

Geographic expansionGeographic expansion

ASEANASEAN

Middle East

Middle East

ChinaChina

IndiaIndiaPakistanPakistan





Leading Competitive Countries





Leading Competitive Countries, new opportunities in sourcing decisions

Cost competitiveness and effective supplier relations to be key for growth in China and GOM

Leading Competitive CountriesLeading Competitive Countries


Customer satisfactionCustomer satisfaction

Other breakthroughsOther breakthroughs






Potential: Light Commercial Vehicles




Potential: Light Commercial Vehicles


CLIPPER TruckCLIPPER Truck AD VanAD Van

VANETTE VanVANETTE Van VANETTE TruckVANETTE Truck CARAVAN/URVANCARAVAN/URVAN

ATLAS 20ATLAS 20 CIVILIANCIVILIAN

EXPERTEXPERTCLIPPER VanCLIPPER Van

ATLEONATLEONPRIMASTARPRIMASTAR INTERSTARINTERSTARKUBISTARKUBISTAR

CEDRIC taxiCEDRIC taxi

ATLAS 10ATLAS 10

CREWCREW

VANETTE VanVANETTE VanVANETTE TruckVANETTE Truck

Light Commercial VehiclesLight Commercial Vehicles

NV Queen CabNV Queen Cab BAKKIEBAKKIE


00

22

44

66

88

1010

--33 --22 --11 00 11 22 33 44

Global market share changeGlobal market share change

CO

P M

argi

n (%

)C

OP

Mar

gin

(%)

◆◆ Nissan:Nissan: ◆◆ Figures of competitors are in 2003 incl. estimation.Figures of competitors are in 2003 incl. estimation.

Maintaining top operating margin Maintaining top operating margin while growingwhile growing

HONDA

1999

2000

2001

GM

RENAULT PSA

FORD

TOYOTA

DCX

VW

BMW

20022003 2007

HYUNDAI

NISSAN 180 Fiscal Year 2003 Review · NISSAN 180 Fiscal Year 2003 Review. NISSAN 180 / FY 2003...

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