Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — H1 FY2001 Earnings Presentation
42 slides from Nissan Motor's earnings presentation, Oct 25, 2001
Slide 1: First Half Fiscal Year 2001 Update
First Half Fiscal Year 2001 Update October 25,2001 Nissan Motor Co., Ltd.
Slide 2: First Half Fiscal Year 2001 Summary Review
First Half Fiscal Year 2001 Summary Review (billion yen) 09/00 09/01 % C hange UnitSales 1,337,000 1,286,000 -3.8% (consolidated retail) N etSales 3,018.3 3,000 = O perating Profit O perating M argin O rdinary Profit N etincom e before tax N etIncom e
Slide 3: Impact on net sales
First Half Fiscal Year 2001 Impact on net sales (billion billion yen yen)) Net sales ： 3,000 Decline of volume/mix volume/mix:: --191 191 Foreign currency translation: 192 8 major companies spun-off spun-off
Slide 4: Half year consolidated operating profit FY 91-01
First Half Fiscal Year 2001 Half year consolidated operating profit FY 91-01 200 187 150 134.4 100 88 (billion yen) 58.1 estimated 58.5 50 36.4 18.6 20.4 0 91 92 93 94 95 96 97 98 99 '00 '01 -18.9 -12.9 -50 -61.1 Figures before FY94 are adjusted by current rate method -100
Slide 5: Half year consolidated operating margin FY 91-01
First Half Fiscal Year 2001 Half year consolidated operating margin FY 91-01 7% 6.2% 5.5% FY01 forecast 5% 4.5% FY02 NRP commitment 4.50% 4% 2.70% 3% 1.90% 1.80% 1.10% 1% 0.60% -0.50% 0.60% 0% 0 1 91 92 93 94 95 96 97 98 99 '0 '0 -1% -0.70% -3% -2.20% Figures before FY94 are adjusted by current rate
Slide 6: Half year impacts on operating profit: FY00 vs FY01
First Half Fiscal Year 2001 Half year impacts on operating profit: FY00 -v- 0１ 200 -3 - 12 -1.4 68Change in scope Sales costOthers 101 -61 Purchasing cost 150 Foreign exchange Volume/Mix Reduction 187.0 Billion yen FY 01 HY op.profit -39 100 Product 134.4 Enrichment FY00 HY op. profit 50 0
Slide 7: Half year operating profit by geographic segment
First Half Fiscal Year 2001 Half year operating profit by geographic segment 130 Japan 110 129 90 59 billion yen 70 50 30 10 -10 FY00 FY01 -30 up 120%
Slide 8: Number of profitable models in Japan
First Half Fiscal Year 2001 Number of profitable models in Japan Fiscal year 1999 Fiscal year 2000 Fiscal year 2001 4 of 43 11 of 40 18 of 38 ppppppp ppppppp ppppppp ppppppp ppppppp ppppppp ppppppp ppppppp ppppppp ppppppp pppp ppp ppppppp ppppppp ppppppp ppppppp ppppppp ppppp p ppp 12% of total volu
Slide 9: Half year operating profit by geographic segment
First Half Fiscal Year 2001 Half year operating profit by geographic segment 130 130 Japan U.S. 110 129 110 81 90 90 59 billion yen billion yen 70 70 50 50 47 30 30 10 10 -10 FY00 FY01 -10 FY00 FY01 -30 up 120% -30 dow n 42%
Slide 10: US product launches
Fiscal Year 2001 US product launches Fiscal year 2000 Fiscal year 2001 Q45 Altima all new Xterra Frontier Frontier CC Long bed minor Maxima 3.5 Sentra SER Infiniti I35
Slide 11: U.S. incentive levels (through September 2001)
First Half Fiscal Year 2001 U.S. incentive levels (through September 2001) Ford Chrysler $3,000 GM $2,500 $2,000 Toyota Nissan $1,500 Honda $1,000 $500 1996 1997 1998 1999 2000 2001 (Source: CNW market research)
Slide 12: U.S. fleet sales
First Half Fiscal Year 2001 U.S. fleet sales (as of 2Q CY 2001) Fleet as a percentage of sales ? Honda 9.9% NISSAN 12.5% TOYOTA 21.6% MAZDA 24.1% FORD 27.3% GM 28.6% CHRYSLER 0 5 10 15 20 25 30 (%) (Source: company disclosure)
Slide 13: Half year operating profit by geographic segment
First Half Fiscal Year 2001 Half year operating profit by geographic segment 50 50 Europe G.O.M. 31 30 30 16 billion yen billion yen 10 10 FY00 FY01 FY00 FY01 -10 -5 -10 -15 -30 -30 up 94%
Slide 14: Half year operating profit by geographic segment
First Half Fiscal Year 2001 Half year operating profit by geographic segment 130 130 Japan U.S. 110 129 110 90 90 81 59 billion yen billion yen 70 70 47 50 50 30 30 10 10 -10 FY00 FY01 -10 FY00 FY01 -30 -30 130 130 110 Europe 110 G.O.M. 90 90 billion yen billion yen 70 70 50 50 31 30 30 16 10 10 110
Slide 15: Half year impacts on non-operating profit
First Half Fiscal Year 2001 Half year impacts on non-operating profit FY00 -v- 01 Half year non-operating profit & loss non-operating (billion (billion yen yen)) FY00 FY01 Total --3.7 3.7 --29 29 Sale of of marketable marketable securities: securities: 17.6 na Financial costs: --18.5 18.5 --15 15 Pa
Slide 16: First Half Fiscal Year 2001 Summary Review
First Half Fiscal Year 2001 Summary Review (billion yen) 09/00 09/01 % C hange UnitSales 1,337,000 1,286,000 -3.8% (consolidated retail) N etSales 3,018.3 3,000 = O perating Profit 134.4 187 + 39% O perating M argin 4.5% 6.2% -- O rdinary Profit 130.7 158 + 21% N etincom e before tax N etIncom e
Slide 17: Half year impacts on extraordinary profit & loss
First Half Fiscal Year 2001 Half year impacts on extraordinary profit & loss FY00 -v- 01 Half year extraordinary profit & loss items (billion (billion yen yen)) FY00 FY01 Total extraordinary profit Total profit:: 42.9 7 Sales Sales of of real estate: real estate 37.1 10 Sales Sales of of investment
Slide 18: First Half Fiscal Year 2001 Summary Review
First Half Fiscal Year 2001 Summary Review (billion yen) 09/00 09/01 % C hange UnitSales 1,337,000 1,286,000 -3.8% (consolidated retail) N etSales 3,018.3 3,000 = O perating Profit 134.4 187 + 39% O perating M argin 4.5% 6.2% -- O rdinary Profit 130.7 158 + 21% N etincom e before tax 173.6 165 -5.0%
Slide 19: Half year impacts on net profit
First Half Fiscal Year 2001 Half year impacts on ｎｅｔ profit FY00 -v- 01 billion yen Current taxes taxes:: --39 39 Deferred tax assets assets:: 106 Minority interests interests:: --2 2
Slide 20: First Half Fiscal Year 2001 Summary Review
First Half Fiscal Year 2001 Summary Review (billion yen) 09/00 09/01 % C hange UnitSales 1,337,000 1,286,000 -3.8% (consolidated retail) N etSales 3,018.3 3,000 = O perating Profit 134.4 187 + 39% O perating M argin 4.5% 6.2% -- O rdinary Profit 130.7 158 + 21% N etincom e before tax 173.6 165 -5.0%
Slide 21: Consolidated net automotive debt 1991-2001
First Half Fiscal Year 2001 Consolidated net automotive debt 1991-2001 2,855 2,866 2,737 2,604 2,500 2,398 2,257 2,152 2,100 2,000 FY 02 1,500 Commitment (billion yen) 1,349 New FY01 1,000 953 Target 804 750 700 500 0 91 92 93 94 95 96 97 98 99 00 H Y01 01 02
Slide 22: Forecast for FY 2001
Forecast for FY 2001 ： FY 01 Forecast： ） (billion yen） Net sales 6,300 Operating profit 350 Estimated net income 330 Net automotive debt < 750
Slide 23: Risks & Opportunities
Risks & Opportunities Risks Opportunities • Simultaneous global • NRP ¾ ¾ Efficiencies Efficiencies slowdown ¾ Products ¾ Products • Heightened competition • Foreign exchange rates ¾ ¾ Incentives Incentives
Slide 24: New products globally
Fiscal Year 2001 5 New products globally FY00 FY00 FY01 FY01 FY02 FY02 Bluebird Skyline Sylphy Stagea X-Trail Altima Cima March Primera Caravan
Slide 25: Japan product launches
Fiscal Year 2002 Japan product launches Fiscal year 2002 Minicar Z-car Cube Luxury coupe Luxury RV Luxury car all new March (02/03) (02/03) sedan wagon RV minor sedan RV wagon sedan
Slide 26: U.S. product launches
Fiscal Year 2002 U.S. product launches Fiscal year 2002 Z-car SUV Maxima Nissan Infiniti G35 New car New car SUV
Slide 27: Europe product launches
Fiscal Year 2002 Europe product launches Fiscal year 2002 Primera New LCV • sedan all new • hatchback • wagon New LCV Micra (03/Q1) (03/Q1) Navara Terrano II Almera minor
Slide 28: General overseas market product launches
Fiscal Year 2002 General overseas market product launches Fiscal year 2002 Gulf Countries Q45 Mexico New SUV Performance Sedan ASEAN New small car (from Renault) C-sedan South Africa Australia Mercosur Frontier facelift Z-car Frontier
Slide 29: New products launch events
Fiscal Year 2002 22 New products launch events Fiscal year 2002 Europe Japan U.S. Primera Minicar Z-car LCV Luxury RV 2 new SUV’s LCV Z-Car Maxima Cube G35 Luxury Car 2 luxury cars Luxury Coupe GOM X-Trail Small Car Z-Car C-sedan Q45 sedan
Slide 30: Investments
First Half Fiscal Year 2001 Investments • United States Canton Plant as of October 2001
Slide 31: Investments
First Half Fiscal Year 2001 Investments • United States • Thailand – decision not to take control • Indonesia • China opportunity
Slide 32: Nissan Revival Plan
NISSAN REVIVAL PLAN
Slide 33: Supplemental materials
Supplemental materials •Sales volume forecast by region •Cost Reduction ¾Purchasing costs ¾Manufacturing restructuring ¾Headcount reduction •Currency assumptions
Slide 34: Nissan retail sales (First Half FY00 vs FY01)
First Half Fiscal Year 2001 Nissan retail sales (First Half FY00 -v- FY01) First First Half Half FY2001 FY2001 :: 1,286,000 1,286,000 500 406 Down Down 3.8% 3.8% 400 349 (th o u sa n d u n its) 335 342 289 273 280 293 300 200 100 0 J ap an U .S . E u ro p e GOM 2000 2001
Slide 35: Full year forecast as of October 18, 2001
Fiscal Year 2001 Full Full year year forecast forecast as as of of October October 18, 18, 2001 2001 Japan TIV TIV:: 4.0 4.0 million million down down 2.6% 2.6% Volume Volume:: 729,000 729,000 down down 0.5% 0.5% Market Market Share Share:: 18.2% up 0.4 U.S. U.S. TIV TIV:: 15.7 15.7 million million
Slide 36: Regional distribution comparison Nissan retail sales
First Half Fiscal Year 2000-1 Regional distribution comparison Nissan retail sales first half FY 2000 first half FY 2001 GOM GOM 21% 23% Japan Europe 25% Japan Europe 22% 27% 21% U.S. U.S. (plus Canada) (plus Canada) 32% 29%
Slide 37: Cost reductions Commitment
First Half Fiscal Year 2001 Cost reductions 100 Commitment (purchasing cost reductions baseline as of FY 1999) Actual 95 - 8% 90 -14.5% -11% - 6.5% 85 -18% -20% FY01 NRP Target 80 FY00 FY01 FY02
Slide 38: Japan manufacturing system: 1999
Aichi Kyoto M Tochigi Kyushu Shonan Oppama ar Murayama Sk ch/ 0 1 2 3 4 5 6 7 yl Cu in e/ be La u Pr rel es Bl ea Pr ue C ef ime bird iro r /I3 a/G 0 2 Su /Ma 0 nn xim y/ Al a C m er ed a ric Cre G w C l ed oria ri w C cs ed ed ric an G 7 plants 24 platforms C lo im ria a/ Pr Q45 es id en t Si lv Fa
Slide 39: Japan manufacturing system: 2001
C Tochigi Kyushu Shonan Oppama ef iro / 0 1 2 3 4 5 6 7 I3 0/ B Sk Ma yl xim i C nG a ed T ric R G lo ria FR Pr -L es ag Se e Te re na rra no S /E M lg ra C nd ar av 4 plants 15 platforms a Sa n fa D ri at su C n ed C r re Av ic s w en ed ir an Pr ai rie Japan manufacturing system: 2001 39
Slide 40: Japan manufacturing system: Capacity Utilization
Japan manufacturing system: Capacity Utilization 7 6 Pre Pre NRP NRP First half fiscal year 2001 Shonan 5 52% 52% 78% 78% Kyushu 4 64% 64% 75% 75% Tochigi 3 28% 28% 74% 74% 2 Oppama 1 45% 45% 75% 75% 0 0% % % % % % % % % % 20 30 50 60 70 80 90 10 40 10 4 plants Average Average 15 platforms 51% 75.7%
Slide 41: Japan manufacturing system: 2004
Japan manufacturing system: 2004 7 6 5 Shonan Kyushu 4 Tochigi 3 2 Oppama 1 0 rie ir/P n cS d a n n rai ed n an tsu gra -L no M C -L B da rav S FR FF Da /E l Se Ca dri en Ce Av rra Te 4 plants 12 platforms 41
Slide 42: Consolidated net head count status
First Half Fiscal Year 2001 Consolidated net head count status 150 148.0 139.2 140 NRP (thousand employees) 133.8 projected level 128.1 130 127.0 120 110 Apr 99 Sep 00 Apr 01 Sep 01 Apr 03 42 (including temp & part time at start of FY99)