Upload
others
View
7
Download
0
Embed Size (px)
Citation preview
FY04 financial results Small Meeting
NISSAN MOTOR CO., LTD.Akira Sato, VP
April 28, 2005
AgendaAgenda
FY04 sales performance
FY04 financial performance
FY04 sales finance business
FY05 outlook
NISSAN Value-Up
Improvement of pension fund
Global retail sales volumeFY04
Thou
sand
uni
ts
FY99 FY00 FY01 FY02 FY03 FY04
2,597
3,057
2,6332,530
2,771
3,388+10.8%
1990: Record sales 3,107
2,200
2,800
3,000
2,600
3,200
3,400
2,400
Thou
sand
uni
ts
2,499
3,064
2,614
2,402
2,737
3,378+10.2%
Global production
2,200
2,800
3,000
2,600
3,200
3,400
2,400
FY99 FY00 FY01 FY02 FY03 FY04
FY04
Record production 3,085
JapanFY04 sales performance
983
848+1.4%
837
Fuga “RJC Car of the Year”
March Cube
Tiida Note4 models in top 10monthly sales ranking
FY03 FY04
Thou
sand
uni
ts
0
600
800
400
1,000
200Industry TIV: 5.8 million (-1.2%)Nissan share: 14.6% (+0.4 point)
United States
856
Thou
sand
uni
ts
1,013+18.4%
0
600
800
400
1,000
200
Pathfinder
Frontier
TitanAltima
FY03 FY04
FY04 sales performance
Industry TIV: 16.9 million (+0.4%)Nissan share: 6.0% (+0.9 point)
Thou
sand
uni
ts
0
80
100
60
120
140
40
Infiniti sales performance
124
78 71
96
76
132+6.5%
FY99 FY00 FY01 FY02 FY03 FY04
Europe
544+0.3%
542
Thou
sand
uni
ts
Industry TIV: 19.8 million (+4.2%)Nissan share: 2.7% (-0.2 point)
X-TRAIL
Pickup0
600
800
400
1,000
200
FY03 FY04
FY04 sales performance
983+19.5%
822
Thou
sand
uni
ts
China sales: 194,000 (+92.7%)Including Dong Feng LCVs
General Overseas Markets**
*Including Mexico and Canada
Teana “Car of the Year 2005”
0
600
800
400
1,000
200
FY03 FY04
FY04 sales performance
AgendaAgenda
FY04 sales performance
FY04 financial performance
FY04 sales finance business
FY05 outlook
NISSAN Value-Up
Improvement of pension fund
FY03 FY04(Billion yen)
FY04 financial performance
FOREX for FY04 ¥107.6/$1, ¥134.4/€1
Change
Net non-operating expenses -15.2 -5.5 +9.7
Financial costs -15.7 -10.4 +5.3
Ordinary profit 809.7 855.7 +5.7%
Net extraordinary losses -73.2 -62.5 +10.7
Net income 503.7 512.3 +1.7%
Net income before tax 736.5 793.2 +7.7%Taxes -219.0 -258.0 -39.0Minority interests -13.8 -22.9 -9.1
Impact on operating profitFY04 financial performance
Billio
n ye
n
Scope of consolidation
+31
FY04OP
861.2
FY03OP
824.9
Forex-78
Salesexpenses
-114
Manufacturing expenses
-15
Warrantyexpenses
-41
R&Dexpenses
-44
Volume/mix+284
900
800
1,000
Purchasingcost
reduction+131
Productenrichment
-92
G&Aand
others-25.7
Operating profit by region Billion yen
Eliminations: FY03 +5.4, FY04: -0.4
FY04FY03
66
GOM (Including Mexico)
84.8
U.S. (+CAN)
FY04FY03
379.7351.8
FY04FY03
400
200
049.2
EUROPE
56
FY04 financial performance
FY03
JAPAN
FY04
400
200
0
341.1352.5
Incentives in the U.S.: CNW
1999 2000 2001 2002 2003 2004 2005
FordFord
$ pe
r uni
t
0
1,000
2,000
3,000
4,000
5,000
ToyotaToyota
HondaHonda
ChryslerChrysler
GMGM
NISSAN
Net cash flow (automotive)
-100
Billion yen
Net debt at beginning of FY03
Net cash at end of FY04
-13.6205.8100
200
300
400
500
600
700
800
0
Cas
hD
ebt
-450.7
Investing activities
Free cashflow
-209.1
Financing activities
Operating activities+879.2
FY04 financial performanceNet automotive debt
2,100
1,349.7
952.7
13.6
431.7
-215.9-8.6
Under new accounting standards
FY98 FY00 FY01 FY02 FY03 FY04FY99
1,000
1,500
500
2,000
2,500
0
-453.5-205.8
Billio
n ye
n
COPFixed assets
+ Net working capital+ Cash on hand
ROIC(Auto)
=
1.3%
7.5%
19.8%21.3%
12.7%
20.1%*
0
10%
15%
5%
FY99 FY00 FY01 FY02 FY03 FY04
20%
25%
FY04 financial performanceReturn on invested capital (ROIC)
*Same scope of consolidation as P&L, excluding change of cash compared to FY03
% o
f net
reve
nue
Canton plant investment included from FY01
Billio
n ye
n
3.4%3.4%
CAPEXCAPEX
4.1%4.1%
5.3%5.3%
R&DR&D4.0%4.0%
3.8%3.8%
4.2%4.2%4.4%4.4%
4.8%4.8%
478
Investment in our futureFY04 financial performance
200
400
300
FY99 FY00 FY01 FY02 FY03 FY04
500
3
5
4
6
FY05
300
378
354
398427
262
326
540
450
5.5%5.5%5.8%5.8% 5.6%5.6%
6.0%6.0%
4.6%4.6%5.0%5.0%
239 244 232 206
Div
iden
d pe
r sha
re /
yen
40
1914
24
3429
7
0
8
Dividend policyFY04 financial performance
FY99 FY00 FY01 FY02 FY03 FY07*
20
10
40
0
30
FY04 FY05* FY06*
*Forecast
AgendaAgenda
FY04 sales performance
FY04 financial performance
FY04 sales finance business
FY05 outlook
NISSAN Value-Up
Improvement of pension fund
Sales finance business
NMAC
FY03 FY04
NFS
0%
10%
20%
30%
40%
50%
60%
FY03
NCFI
NFS: Nissan Financial ServiceNMAC: Nissan Motor Acceptance CorporationNCFI: NCFI: Nissan Canada Finance Inc..
FY03 FY04
RetailLease
Penetration
26.4%
3.2%3.2%35.2%
14%
41.7%
17.3%
14.7%13.8%
35.0%37.0%
FY04
26.1 %
3.3%
Sales finance business
NFS
FY03 FY04
Lease: 0.05%Retail: 0.28%
NMAC Lease: 0.37%Retail: 1.07%
Variance
Lease: -0.03%Retail: -0.10%
Lease: -0.16%Retail: -0.06%
Lease: 0.53%Retail: 1.13%
Lease: 0.08%Retail: 0.38%
Lease: 0.10%Retail: 0.13%
Lease: -0.02%Retail: +0.01%
Lease: 0.12%Retail: 0.12%
NCFI
Net Loss Ratio
NFS: Nissan Financial ServiceNMAC: Nissan Motor Acceptance CorporationNCFI: NCFI: Nissan Canada Finance Inc..
FY03 FY04
(billion yen)
(Ass
et/b
illion
yen
) (OP)
1,118.6
1,378.2
14.7
11.0
Sales finance businessOperating Profit / Asset
(Ass
et*/
mill
ion
USD
)
FY03 FY04
(Million U
SD
)
(OP)
24,721
NMACNFSNFS: Nissan Financial ServiceNMAC: Nissan Motor Acceptance Corporation,
468
0
300
600
900
1,200
0
5.0
10.0
15.0
20.0
0
200
400
600
800
0
10,000
20,000
30,000
40,000
427
30,227
Sales finance business
Total funding amount : 4,503.7 billion Yen
(= Total assets – Other liabilities + off balance sources)
Funding
As of March 31, 2005
3.9%Bonds
21.4%Group finance(Inter-Company)
2.9%S/T loan
10.8%L/T loan
38.4%ABS On B/S
6.4%ABS Off B/S
7.5%Equity
8.7%CP
AgendaAgenda
FY04 sales performance
FY04 financial performance
FY04 sales finance business
FY05 outlook
NISSAN Value-Up
Improvement of pension fund
0
1,500
2,000
1,000
FY01 FY02 FY03 FY04 FY05*
3,000
3,500
500
FY05 outlook
2,597 2,7713,057
3,3882,500
3,618+6.8%
TIV assumption: 61 million (+0.7%)Thou
sand
uni
ts
*Forecast
FY05 new models
JapanSerena
OttiCompact wagonM-class sedan
Minicar
Europe
U.S./Canada
GOMQuest Infiniti M Lafesta Pathfinder Tiida hatchback InterstarNavara Tiida sedan Xterra
350Z RoadsterMurano
PathfinderNavara
Micra C+C
0
1,500
2,000
1,000
FY01 FY02 FY03 FY04 FY05*
3,000
3,500
500
FY05 outlook
2,597 2,7713,057
3,3882,500
3,618+6.8%
TIV assumption: 61 million (+0.7%)Thou
sand
uni
ts
*Forecast
+3.3% U.S.1,047
+ 10% Japan933
+1.1% Europe550
+10.7% GOM (+Mexico, Canada)
1,088
RisksVolatility in exchange
ratesHigher interest ratesHigher commodity pricesHigher energy pricesHigher level of incentivesUncertainty on level ofgrowth in U.S. and Japanese markets
OpportunitiesNISSAN Value-Up
FY05 outlook
FY04 FY05(FC)(Billion yen) Change
Consolidated net revenue 8,576.3 9,000 +4.9%
Consolidated operating profit 861.2 870 +1.0%
Ordinary profit 855.7 860 +0.5%
Net income 512.3 517 +0.9%
+13.1%CAPEX 540477.5
ROIC 20.1% ----20% or aboveFOREXfor FY05
¥105/$1¥130/€1
+13.0%R&D expenses 450398.1
FY05 outlook
*Include consolidation of Calsonic Kansei
AgendaAgenda
FY04 sales performance
FY04 financial performance
FY04 sales finance business
FY05 outlook
NISSAN Value-Up
Improvement of pension fund
Track toward great company
NRP NISSAN 180 NISSAN Value-Up
“Revive our company ”
“Complete revival on track for profitable growth”
“Value up with sustained performance”
Commitments• Profitability in FY00
• Operating profit margin>4.5% in FY02
• 50% debt reduction by FY02
• +1M units by 9/05
• 8% operating profit margin
• 0 automotive debt
• 4.2M units in FY08
• Top level operating profit margin
• ROIC average 20%
Core elements of NISSAN 180Evolutionary plan
More revenue More quality and speedLess
cost
Maximized alliance with
Renault
NISSAN Value-Up commitments
Top level operating profit margin among global automakers in FY05-07
Profit commitment
To sustain performance
0
2
4
6
8
10
12
-3 -2 -1 0 1 2Global Market Share Change from 1999 (%)
CO
P m
argi
n (%
)
GM
RENAULT
PSADCX
HONDA
TOYOTA
BMW HYUNDAI
FORD
VW◆◆ Nissan ◆◆ Competitors in 20041999
2000
2001
20022003 2004 2007
NISSANValue-Up
NRP
N180
Top level operating profit marginNISSAN Value-Up commitments
NISSAN Value-Up commitments
Top level operating profit margin among global automakers in FY05-07
Profit commitment
4.2 million sales in FY08
Volume commitment
+812
+791
2,597
3,388
Global sales volume
0
2,000
1,000
FY01 FY04 FY08*
4,000
3,000
Thou
sand
uni
ts
4,200 commitment
*Forecast
NISSAN Value-Up commitments
20% average ROIC over the plan
NISSAN Value-Up commitments
Top level operating profit margin among global automakers in FY05-07
Profit commitment
4.2 million sales in FY08
Volume commitment
Return on invested capital
Financial metrics comparison
Source: Moody’s Rating Methodology: Global Auto Industry (Sept. 2004) Analysis: NISSAN IR
*Retained cash flow: Cash flow from operation – change in working capital - dividend**Adjusted cash: Cash + marketable securities + VEBA (Voluntary employee’s beneficiary association)
Top profitability
Strong cash flow
Weak liquidity Average investment
ROA
ROEAss
et Turn
over
RCF*/Tota
l Deb
tRCF*/N
et Deb
tFixe
d Cha
rge C
overa
ge
Adj. C
ash*
*/ Tota
l Ass
etCas
h/Deb
t (B/S
)
Adj. C
ash*
*/Tota
l Deb
tMatu
rityR&D/R
even
ue
Deprec
iation
/CAPEX
EBITA Marg
in
0123456
Average rating: A
BMW Honda PSA
DCX VW
Nissan
Toyota
FCF/Total D
ebt
From auto to financeInter-company loan
% o
f int
er-c
ompa
ny lo
an
FY02 FY03 FY040
150
300
450
600
750
900
0%
5%
10%
15%
20%
25%
30%
35%
Billio
n ye
n
1,05035.7%
33.0%
23.1%
% of inter-company loan = inter-company loan/total funding excluding equity
0
10%
15%
5%
20%
25%
NISSAN 180 NISSAN Value-UpNRP
7.5%
19.8%21.3%
12.7%
ROIC average of 20%
FY00 FY02 FY03 FY04 FY05 FY06 FY07FY01FY99
Return on invested capital (auto)
COPFixed assets
+ Net working capital
ROIC(Auto)
=
20.1%*
*Same scope of consolidation as P&L, excluding change of cash compared to FY03
1.3%
NISSAN Value-Up commitments
Key assumptions
Total industry volume up to 63 million units in FY07
Foreign exchange rateFY05 105¥/$ 130¥/€FY06, FY07 100¥/$ 120¥/€
New global product launches
31
44
28NISSAN Value-UpNISSAN 180
70
New Products
Start of Production
28 all-new modelsNISSAN Value-Up
10 new conquest models
18 replacement models
2828
Infiniti global tier-1 luxury brandBreakthrough
Taiwan
Middle East
Russia
Korea
ChinaNorth America
Japan*
*Japan launch after NISSAN Value-Up
Light Commercial Vehicles
AD VanATLAS
CIVILIAN
CARAVAN
CABSTAR
22 Nissan-badged models
Breakthrough
Thou
sand
uni
ts
0
450
FY00 FY03 FY07*
600
300
150
0
6%
4%
8%
2%
Light Commercial Vehicles
Con
solid
ated
ope
ratin
g m
argi
n
312
187 203 182234
FY01 FY02 FY04
434+40%
Breakthrough
3.3%3.6%
-0.5%1.4%
4.0%
8.0%
Leading Competitive Countries (LCCs)
Thailand
China
Egypt
Maximize opportunities, minimize costs
IndiaRomania
Hungary
Vietnam Mexico
Mercosur
Breakthrough
Geographic expansion
IndiaPakistan
Russia
Egypt Thailand
Gulf Countries China
Eastern Europe
Breakthrough
80% SU-LEVBy March 06
40% EV
=
Environmental technologiesOpportunities
1 million CVTs
200,000hybrids
HEV
ULEVULEV
SU-LEVEV
=CVT
CO2 EmissionNOx & HC Emission
New safety approach
Safety Shield
10 new safety technologies in the next three years
Opportunities
AgendaAgenda
FY04 sales performance
FY04 financial performance
FY04 sales finance business
FY05 outlook
NISSAN Value-Up
Improvement of pension fund
PBO1,217
UnrecognizedObligation
208
Provision501
Asset501
PBO409
Provision228
Asset181
PBO808
Unrecognized208
Provision280
Asset320
PBO363
Lump-sum contribution at June 2005 NML: 202 Bil. YenNS: 26 Bil. Yen
Total 228 Bil. Yen
PBO1,171
UnrecognizedObligation
208
Provision280
Asset683
PBO 46Asset 46
Pension B/S for accounting purpose
Others
TQPP and lump-sumpayment of NML,NS
DC portion
DB portion
(As of Mar.2004, bil. Yen)
Pension B/S after contribution
Funding ratio 41.1%
Funding ratio 58.3%
Asset363
1.Purpose ( Improvement of pension B/S )
Proposal
Asset 139(135*1.03)
PBO363
Asset135
228
UnfundedPortion
235
UnfundedPortion
Annual pension cost in operating profit (7 Bil. Yen)
Lump-sum contribution by 228 Bil. Yen
Difference
7 Bil. Yen / Year5 Bil. Yen for FY05 (9
months)
2. Purpose ( Improvement of operating profit )
(Bil. Yen)
PBO 374(363 * 1.03)
PBO 374(363 * 1.03)Asset 374
(363 * 1.03)
-100
Billion Yen
206
+908
Operating Activity
-540
Investing Activity
246
-100
100
200
300
400
500
600
700
800
0
Cash
Posi
tive
Debt
3. FY2005 Net Debt
-228
Financial Activity
Pension fund
Net debt at the end of FY04
Net debt at the end of FY05
4. FY2005 Change of cash on hand
FY04 end
280
OperatingActivity
270
116 -341
Decrease of group financeFrom Auto to Finance
Pension
-228 228 320
Funding fromoutside
DebtMaturity
FOREX-5
(Cash on hand /Auto sales amount)
3.7%
(Bil.Yen)
FY05 end
Lump-sum pension payment is to be financed by debt funding such as bond issuance and L/T borrowing.
JGB 5 year interest rateAppendix 1
* Interest rate is still historically low
NML Bond Maturity ProfileAppendix 2
(As of March 31, 2005)
(Mil. Yen)
185,000
115,000
30,000
50,000
0
70,000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
160,000
180,000
200,000
FY05 FY06 FY07 FY08 FY09 FY10