Annual ReportAnnual Report

Nissan MotorNissan Motor

Llin LuLlin Lu

ACG 2021 Section 080ACG 2021 Section 080

Executive SummaryExecutive Summary

Nissan Motor had a increase in their sales Nissan Motor had a increase in their sales from the year 2003 to 2004. They continue from the year 2003 to 2004. They continue to become great in the automotive industry to become great in the automotive industry by offering great products and service.by offering great products and service.

http://www.nissannews.com/corporate/corhttp://www.nissannews.com/corporate/corpover/ar2004e.pdfpover/ar2004e.pdf

Part A. IntroductionPart A. Introduction

Chief Executive Officer: Carlos GhosnChief Executive Officer: Carlos Ghosn Home Office: 2 Takara-Cho, Kanagawa-ku Home Office: 2 Takara-Cho, Kanagawa-ku

Yokohama-shi, Kanagawa 220-8623, JapanYokohama-shi, Kanagawa 220-8623, Japan Ending Fiscal Period: March 31, 2004Ending Fiscal Period: March 31, 2004 Nissan Motor sells automobiles. Nissan Motor sells automobiles. The main geographic are of activity is in the The main geographic are of activity is in the

U.S.A. and Japan.U.S.A. and Japan.

Part A. Audit ReportPart A. Audit Report

Auditors: Shinji Ichishima, Keishi Imamura, Auditors: Shinji Ichishima, Keishi Imamura, Hiroyasu Kan, Hiroshi Moriyama, Haruo Hiroyasu Kan, Hiroshi Moriyama, Haruo Murakami Murakami

Nissan is moving towards a more Nissan is moving towards a more profitable industry. They are one of the profitable industry. They are one of the leading industries in automobiles. leading industries in automobiles.

Part A. Stock Market InformationPart A. Stock Market Information

Current Stock Price: $22.67Current Stock Price: $22.67

20052005Q1Q1 Q2Q2 Q3Q3 Q4Q4

HighHigh 22.6022.60 20.5020.50 23.0023.00 22.9522.95

LowLow 20.5020.50 19.9019.90 20.1020.10 20.4920.49

Part A. Stock Market InformationPart A. Stock Market Information

Dividend Per Share: 0.20Dividend Per Share: 0.20 Date of Dividend: Feb. 10, 2006Date of Dividend: Feb. 10, 2006 The Stockholders should hold on to their The Stockholders should hold on to their

stocks until there is a change in increase stocks until there is a change in increase of the price. It hasn’t changed much during of the price. It hasn’t changed much during the past year. the past year.

Part B. Industry Situation and Part B. Industry Situation and Company PlansCompany Plans

The sale of Nissan has grown over the last The sale of Nissan has grown over the last fiscal period and they are a profitable fiscal period and they are a profitable market in the industry of automobiles. market in the industry of automobiles. Some of the plans ahead is to continue Some of the plans ahead is to continue improvement in reliable automotives and improvement in reliable automotives and lead in the global automotive industry. lead in the global automotive industry.

Part C. Income StatementPart C. Income Statement

Nissan Motor uses a multi-step formatNissan Motor uses a multi-step format

Millions of YenMillions of Yen

20042004 20032003

Gross ProfitGross Profit 2,225,0082,225,008 2,119,0472,119,047

Income From Income From OperationsOperations

861,160861,160 824,855824,855

Net IncomeNet Income 512,281512,281 503,667503,667

Part C. Income StatementPart C. Income Statement

From the year 2003 to 2004, there is an From the year 2003 to 2004, there is an increase in gross profit, income from increase in gross profit, income from operations, and net income.operations, and net income.

Part C. Balance SheetPart C. Balance Sheet

Assets Assets LiabilitiesLiabilities Stockholders Stockholders EquityEquity

20032003 7,859,8567,859,856 5,732,0775,732,077 2,023,9942,023,994

20042004 9,848,5239,848,523 7,126,0727,126,072 2,465,7502,465,750

Millions of Yen

In 2004, there is an increase in all accounts, but Stockholders Equity change the least, as oppose to Assets and Liabilities

Part C. Statement of Cash FlowsPart C. Statement of Cash Flows

Cash flow from operations is more than net income in Cash flow from operations is more than net income in 2003, but in 2004, net income is more than cash flow 2003, but in 2004, net income is more than cash flow from operations. from operations.

Nissan Motor has an increase in their investment Nissan Motor has an increase in their investment through property, land, equipment, and other assets. through property, land, equipment, and other assets.

There primary source of finance are sales of lease There primary source of finance are sales of lease vehicles and sales of property, plant, and equipment.vehicles and sales of property, plant, and equipment.

Cash has indeed increase over the past two years.Cash has indeed increase over the past two years.

Part D. Accounting Policies Part D. Accounting Policies They are consider Assets. They are consider Assets. Basis of PresentationBasis of Presentation Principles of consolidation and accounting for investments in unconsolidated subsidiaries and Principles of consolidation and accounting for investments in unconsolidated subsidiaries and

affiliates affiliates Foreign Currency Translation Foreign Currency Translation Cash Equivalents Cash Equivalents Inventories Inventories Short-term investments and investment securitiesShort-term investments and investment securities Property, plant, equipment and depreciationProperty, plant, equipment and depreciation LeasesLeases Retirement benefitsRetirement benefits Income TaxesIncome Taxes Research and development costsResearch and development costs Revenue RecognitionRevenue Recognition Derivative financial instruments Derivative financial instruments Appropriation of retained earningsAppropriation of retained earnings New Accounting StandardsNew Accounting Standards

Part E. Financial Analysis Part E. Financial Analysis Liquidity RatiosLiquidity Ratios

20032003 20042004

Working CapitalWorking Capital 664,482664,482 1,164,6801,164,680

Current RatioCurrent Ratio 1.2 times1.2 times 1.3 times1.3 times

Receivable TurnoverReceivable Turnover 3.0 times3.0 times 2.8 times2.8 times

Avg. Days Sales UncollectedAvg. Days Sales Uncollected 121.3 days121.3 days 129.4 days129.4 days

Inventory TurnoverInventory Turnover 9.8 times9.8 times 10.2 times10.2 times

Avg. Days Inventory on HandAvg. Days Inventory on Hand 37.2 days37.2 days 35.8 days35.8 days

Ratios in Millions of Yen

Part E. Financial Analysis Part E. Financial Analysis Profitability RatiosProfitability Ratios

20032003 20042004

Profit MarginProfit Margin 6.78%6.78% 5.97%5.97%

Asset TurnoverAsset Turnover 0.98 times0.98 times 0.97 times0.97 times

Return on AssetsReturn on Assets 6.62%6.62% 5.79%5.79%

Return on EquityReturn on Equity 26.29%26.29% 22.82%22.82%

Ratios in Millions of Yen

Part E. Financial AnalysisPart E. Financial AnalysisSolvency RatioSolvency Ratio

20032003 20042004

Debt to EquityDebt to Equity 2.9 times2.9 times 3.0 times3.0 times

Ratio in Millions of Yen

Part E. Financial AnalysisPart E. Financial AnalysisMarket Strength RatiosMarket Strength Ratios

20032003 20042004

Price/Earnings per Price/Earnings per ShareShare

131.9 times131.9 times 103.0 times103.0 times

Dividend YieldDividend Yield 0.0080.008 0.0100.010