Nissan Motor Co., Ltd. · TSE:7201

Nissan Motor — FY2003 Earnings Presentation

67 slides from Nissan Motor's earnings presentation, Apr 26, 2004

  1. Slide 1: NISSAN 180 Fiscal Year 2003 Review

    NISSAN 180 Fiscal Year 2003 Review April 26, 2004 Carlos Ghosn, President & CEO NISSAN 180 / FY 2003 Review

  2. Slide 2: Agenda

    Agenda Review of FY 2003 Outlook for FY 2004 Post NISSAN 180 NISSAN 180 / FY 2003 Review

  3. Slide 3: Global retail sales

    FY 2003 3,057 Global retail sales +10.4% 3,000 2,771 2,800 (thousand units) 2,633 2,600 2,597 2,530 2,400 First time in 13 years to pass 3 million unit sales 2,200 2,000 FY99 FY00 FY01 FY02 FY03 NISSAN 180 / FY 2003 Review

  4. Slide 4: Retail sales by region: Japan

    FY 2003 Retail sales by region 1,000 816 837 800 (thousand units) 600 400 Industry Industry TIV: TIV: 5.9 5.9 million million (+0.4%) (+0.4%) 200 Nissan Nissan sales: sales: 837,000 837,000 (+2.6%) (+2.6%) Nissan Nissan share: share: 14.2% 14.2% (+0.3 (+0.3 point) point) 0 Japan FY02 FY03 NISSAN 180

  5. Slide 5: Sales performance: Japan

    Sales performance: Japan March Cube Cube33 NISSAN 180 / FY 2003 Review

  6. Slide 6: Retail sales by region: U.S.

    FY 2003 Retail sales by region 1,000 816 837 856 800 726 (thousand units) 600 Industry Industry TIV: TIV: 16.8 16.8 million million (+1.0%) (+1.0%) 400 Nissan Nissan sales: sales: 856,000 856,000 (+17.9%) (+17.9%) Nissan Nissan share: share: 5.1% 5.1% (+0.7 (+0.7 point) point) 200 0 Japan U.S. FY02

  7. Slide 7: Sales performance: Nissan Division

    Sales performance: Nissan Division Murano Murano Quest Quest Titan Titan Crew Crew Cab Cab Armada Armada Titan Titan King King Cab Cab Altima Altima Maxima Maxima NISSAN 180 / FY 2003 Review

  8. Slide 8: Sales performance: Infiniti Division

    Sales performance: Infiniti Division 140 124 +29.4% 120 (thousand units) 100 96 76 78 80 71 60 40 0 FY99 FY00 FY01 FY02 FY03 NISSAN 180 / FY 2003 Review

  9. Slide 9: Retail sales by region: U.S.

    FY 2003 Retail sales by region 1,000 816 837 856 800 726 (thousand units) 600 Nissan share: 5.1% (+0.7 point) 400 200 0 Japan U.S. FY02 FY03 NISSAN 180 / FY 2003 Review

  10. Slide 10: Sales performance: Nissan Division

    Sales performance: Nissan Division GM ($ per unit) 4,000 Incentive per unit in U.S. Ford Chrysler 3,500 3,000 Toyota 2,500 2,000 NISSAN 1,500 1,000 Honda 500 0 FY96 FY97 FY98 FY99 FY00 FY01 FY02 FY03 Source: CNW Marketing Research NISSAN 180 / FY 2003 Review

  11. Slide 11: Sales performance: Infiniti Division

    Sales performance: Infiniti Division MERCEDES ($ per unit) 4,000 Incentive per unit in U.S. 3,500 LEXUS 3,000 2,500 BMW 2,000 1,500 1,000 500 INFINITI 0 FY99 FY00 FY01 FY02 FY03 Source: CNW Marketing Research NISSAN 180 / FY 2003 Review

  12. Slide 12: Retail sales by region: Europe

    FY 2003 Retail sales by region 1,000 816 837 856 800 726 (thousand units) 600 542 474 400 Industry Industry TIV: TIV: 19.0 19.0 million million (+0%) (+0%) 200 Nissan Nissan sales: sales: 542,000 542,000 (+14.4%) (+14.4%) Nissan Nissan share: share: 2.9% 2.9% (+0.4 (+0.4 point) point) 0 Japan U.S. E

  13. Slide 13: Sales performance: Europe

    Sales performance: Europe Micra Pickup (Navara) X-TRAIL NISSAN 180 / FY 2003 Review

  14. Slide 14: Retail sales by region: GOM

    FY 2003 Retail sales by region 1,000 816 837 856 822 800 726 755 (thousand units) 600 542 474 400 200 Nissan Nissan sales: sales: 822,000 822,000 (+9.0%) (+9.0%) 0 Japan U.S. Europe GOM* FY02 FY03 *GOM: Including Mexico and Canada NISSAN 180 / FY 2003 Review

  15. Slide 15: Retail sales: Australia and China

    FY 2003 Retail sales by region 120 101 +30.4% 100 (thousand units) 80 77 62 +23.1% 60 50 40 20 Australia China FY02 FY03 NISSAN 180 / FY 2003 Review

  16. Slide 16: FY 2003: 10 new models

    FY 2003: 10 new models ZZ Roadster Roadster Titan Titan King King Cab Cab Cube3 Titan Titan Crew Crew Cab Cab Armada Armada Kubistar Kubistar Clipper Clipper Van Van Clipper Clipper Truck Truck Quest Quest Presage Presage NISSAN 180 / FY 2003 Review

  17. Slide 17: Canton new models

    Canton new models Armada QX56 Quest Titan King Cab Titan Crew Cab NISSAN 180 / FY 2003 Review

  18. Slide 18: Investments

    Investments Partnership with Dongfeng and Yulon Motor will support Nissan’s growth in the Chinese car and truck markets NISSAN 180 / FY 2003 Review

  19. Slide 19: Consolidated net revenue

    FY 2003 7,429.2 Consolidated net revenue +8.8% 7,500 7,000 6,828.6 (billion yen) 6,500 6,089.6 6,196.2 6,000 5,977.1 5,500 5,000 FY99 FY00 FY01 FY02 FY03 NISSAN 180 / FY 2003 Review

  20. Slide 20: Consolidated operating profit / margin

    FY 2003 Consolidated operating profit / margin 11.1% 10.8% 11 1,000 10 9 7.9% 825 800 737 8 (billion yen) 7 600 6 4.75% 489 5 400 4 290 3 200 1.4% 2 82 1 0 0 FY99 FY00 FY01 FY02 FY03 NISSAN 180 / FY 2003 Review

  21. Slide 21: Impact on operating profit

    Impact on operating profit 1,000 900 (billion yen) 800 FY03 O.P. 825 700 FY02 O.P. Forex -48 737.2 600 500 NISSAN 180 / FY 2003 Review

  22. Slide 22: Impact on operating profit

    Impact on operating profit 1,000 900 (billion yen) 800 USD FY03 -101 Others O.P. EUR +24 825 700 FY02 +29 O.P. 737.2 600 500 NISSAN 180 / FY 2003 Review

  23. Slide 23: Impact on operating profit

    Impact on operating profit Purchasing cost Enrichment & regulations +183 -83 1,000 Volume/ R&D G&A mix -54 and +185 900 others -27.3 Manufacturing (billion yen) 800 cost Lease Sales -12 FY03 accounting cost +20 -72 O.P. 825 700 FY02 O.P. Forex Scope of -48 consolidation 737.2 -4 600 500 NISSAN 180 /

  24. Slide 24: Operating profit by region

    FY 2003 Operating profit by region ( billion yen) JAPAN U.S. (+CAN) 500 500 390.6 352.5 351.8 242.0 250 250 0 0 FY02 FY03 FY02 FY03 500 EUROPE 500 GOM* 250 250 49.2 77.6 66.0 21.9 0 0 FY02 FY03 FY02 FY03 Eliminations: FY02: +5.1, FY03: +5.4 *Including Mexico NISSAN 180 / FY 2003 Review

  25. Slide 25: FY 2003 income summary

    FY 2003 (billion yen) FY 02 FY 03 Change Consolidated net revenue 6,828.6 7,429 +8.8% Consolidated operating profit 737.2 825 +11.9% Net non-operating expense -27.1 -15.2 -11.9 Ordinary profit 710.1 810 +14.0% Net extraordinary loss -15.5 -73.2 -57.7 Income before tax 694.6 736.5 +41.9 Net income 49

  26. Slide 26: Net profit

    FY 2003 Net profit 495.2 503.7 500 400 372.3 331.1 300 (billion yen) 200 100 0 -684.4 -800 FY99 FY00 FY01 FY02 FY03 NISSAN 180 / FY 2003 Review

  27. Slide 27: Net cash change

    Net cash change (billion yen) Total: Operating 300 268.3 activities Net automotive 200 160.3 debt at the Lease end of FY03 FX rate 100 liability 108.0 Other impact 13.6 0 financial Net Dividend activities -126.9 -100 automotive debt at paid -65.9 Treasury -200 beginning of FY03 Investing stock -74.6

  28. Slide 28: Investment in our future

    Investment in our future + 49 billion yen 6 CAPEX 5.8% 5.5% 5.3% % of net revenue + 54 billion yen 5 4.8% 4.4% 4.1% 4.2% 4 3.8% R&D 3.9% 3.4% 3 FY99 FY00 FY01 FY02 FY03 Canton plant investment included from FY01 NISSAN 180 / FY 2003 Review

  29. Slide 29: Return on invested capital (auto)

    Return on invested capital (auto) 25% 21.3% Target: 20% 20% 19.8% 15% 12.7% 10% 7.5% 5% 1.3% 0% FY99 FY00 FY01 FY02 FY03 NISSAN 180 / FY 2003 Review

  30. Slide 30: Working capital reduction

    Working capital reduction 10% 9.0% 7.6% 7.6% 8% 5.8% 6% 4% 3.6% 2% Account Account receivable receivable ++ Inventory Inventory –– Account Account payable payable Automotive Automotive net net revenue revenue 0% FY99 FY00 FY01 FY02 FY03 NISSAN 180 / FY 2003 Review

  31. Slide 31: Dividend policy

    Dividend policy (Dividend per share / yen) 25 24 20 19 15 14 10 8 7 5 0 FY00 FY01 FY02 FY03 FY04 NISSAN 180 / FY 2003 Review

  32. Slide 32: Agenda

    Agenda Review of FY 2003 Outlook for FY 2004 Post NISSAN 180 NISSAN 180 / FY 2003 Review

  33. Slide 33: FY 2004 global retail sales

    FY 2004 Global retail sales 3,380 3,400 TIV TIV assumption assumption 58.8 58.8 million million (+1.7%) (+1.7%) 3,200 Nissan Nissan sales: sales: 3.38 3.38 million million (+10.5%) (+10.5%) 3,057 (thousand units) Nissan Nissan share: share: 5.8% 5.8% (+0.5 (+0.5 point) point) 3,000 2,800 2,771 2,633

  34. Slide 34: Retail sales in Japan

    FY 2004 Retail sales in Japan 1,200 1,000 870 837 (thousand units) 816 800 714 600 TIV TIV assumption assumption 5.8 5.8 million million (-1.1%) (-1.1%) Nissan Nissan sales: sales: 870,000 870,000 (+4.0%) (+4.0%) 400 Nissan Nissan share: share: 14.9% 14.9% (+0.7 (+0.7 point) point) 200 0 FY01 FY02 F

  35. Slide 35: Retail sales in U.S.

    FY 2004 Retail sales in U.S. 1,200 1,000 1,000 856 (thousand units) 800 719 726 600 TIV TIV assumption assumption 16.9 16.9 million million (+0.4%) (+0.4%) Nissan Nissan sales: sales: 11 million million (+16.8%) (+16.8%) 400 Nissan Nissan share: share: 5.9% 5.9% (+0.8 (+0.8 point) point) 200 0 FY01

  36. Slide 36: Retail sales in Europe

    FY 2004 Retail sales in Europe 1,200 TIV TIV assumption assumption 19.4 19.4 million million (+1.9%) (+1.9%) 1,000 Nissan Nissan sales: sales: 538,000 538,000 (-0.8%) (-0.8%) (thousand units) 800 Nissan Nissan share: share: 2.8% 2.8% (-0.1 (-0.1 point) point) 600 542 538 493 474 400 200 0 FY01 FY02

  37. Slide 37: Retail sales in GOM

    FY 2004 Retail sales in GOM* 1,200 1,000 972 822 (thousand units) 800 755 672 600 Nissan Nissan sales: sales: 972,000 972,000 (+18.2%) (+18.2%) 400 200 0 FY01 FY02 FY03 FY04 Forecast *GOM: Including Mexico and Canada NISSAN 180 / FY 2003 Review

  38. Slide 38: FY 2004: new models

    FY 2004: 9 new models Europe Japan U.S./(Canada*) Murano X-TRAIL* Compact HB#1 Pathfinder Luxury sedan Frontier King Cab Compact sedan Frontier Crew Cab Compact MPV Xterra Compact HB#2 M45 GOM/Mexico Minivan Crossover SUV Altima Luxury coupe Compact HB Compact MPV Full-size SUV Infiniti full-size SU

  39. Slide 39: Progress toward NISSAN sales

    Progress toward NISSAN 180 sales 3,600 3,600 3,380 +783 3,400 (thousand units) 3,200 1 million units 3,057 +460 3,000 2,771 2,800 +174 2,597 2,600 2,400 FY01 FY02 FY03 FY04 Oct 04- 04-Sep 05 Forecast Forecast NISSAN 180 / FY 2003 Review

  40. Slide 40: FY 2004 Risks and Opportunities

    FY 2004 Risks Opportunities „ Adverse foreign „ NISSAN 180 exchange fluctuation „ Rising commodity prices „ Rising interest rates NISSAN 180 / FY 2003 Review

  41. Slide 41: Financial forecast

    FY 2004 Financial forecast (billion yen) FY 03 FY 04 Change Consolidated net revenue 7,429 8,176 +10.1% Consolidated operating profit 825 860 +4.3% Operating margin 11.1% 10.5% -0.6 point Ordinary profit 810 846 +4.5% Net income 504 510 +1.3% Capital expenditure 427 480 +12.4% ROIC 21.3% 20% or abov

  42. Slide 42: Financial forecast at FY03 FX rate

    FY 2004 Financial forecast At FY03 FX (billion yen) FY 03 FY 04 rate Consolidated net revenue 7,429 8,176 Consolidated operating profit 825 860 990 Operating margin 11.1% 10.5% 11.6% Ordinary profit 810 846 Net income 504 510 Capital expenditure 427 480 ROIC 21.3% 20% or above Foreign exchange assum

  43. Slide 43: Scope of consolidation

    Scope of consolidation Yulon Yulon Nissan Nissan Nissan Nissan Motor Motor Siam Siam Nissan Nissan Dongfeng Dongfeng Motor Motor Light Light Truck Truck Automobile Automobile Motor Motor Co., Co., Ltd. Ltd. Co., Co., Ltd. Ltd. Co., Co., Ltd. Ltd. Co., Co., Ltd. Ltd. Taiwan Taiwan Japan Japan Thailan

  44. Slide 44: Agenda

    Agenda Review of FY 2003 Outlook for FY 2004 Post NISSAN 180 NISSAN 180 / FY 2003 Review

  45. Slide 45: Market capitalization

    Market capitalization 6 5.3 5 4.2 (trillion yen) 4 3 2 1.2 1 0 March 31, 1999 March 31, 2002 March 31, 2004 NISSAN 180 / FY 2003 Review

  46. Slide 46: Nissan Value-Up Plan

    Nissan Value-Up Plan LOGO FY2005 to FY2007 NISSAN 180 / FY 2003 Review

  47. Slide 47: NISSAN Value-Up commitments

    NISSAN Value-Up commitments Growth Sustained profitability Return on investment NISSAN 180 / FY 2003 Review

  48. Slide 48: NISSAN Value-Up commitments

    NISSAN Value-Up commitments Growth Global sales of 4.2 million units NISSAN 180 / FY 2003 Review

  49. Slide 49: Global sales volume

    Global sales volume +820 4,200 Commitment 4,000 3,380 +783 3,000 (thousand units) 2,597 2,000 1,000 0 2001 2004 Forecast 2007 Forecast NISSAN 180 / FY 2003 Review

  50. Slide 50: Global market share

    Global market share 8% NRP NISSAN 180 NISSAN Value-Up 7.0% 7% 6% 5.3% 5.0% 5% 4.6% 4.7% 4.7% 4% FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 NISSAN 180 / FY 2003 Review

  51. Slide 51: Global product launches

    Global product launches FY02 FY03 FY04 FY05 – FY07 12 10 9 28 NISSAN 180 / FY 2003 Review

  52. Slide 52: NISSAN Value-Up commitments

    NISSAN Value-Up commitments Growth Global sales of 4.2 million units Sustained profitability Top operating profit margin for global automaker NISSAN 180 / FY 2003 Review

  53. Slide 53: Consolidated operating profit margin

    Consolidated operating profit margin 12% 10.8% 11.1% Top global automaker (double-digit) 10% 7.9% 8% 6% 4.75% 4% 2%1.4% NRP NISSAN 180 NISSAN Value-Up 0 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 NISSAN 180 / FY 2003 Review

  54. Slide 54: NISSAN Value-Up commitments

    NISSAN Value-Up commitments Growth Global sales of 4.2 million units Sustained profitability Top operating profit margin for global automaker Return on investment Return on invested capital 20% NISSAN 180 / FY 2003 Review

  55. Slide 55: Return on invested capital (auto)

    Return on invested capital (auto) 25% 21.3% At or above 20% 20% 19.8% 15% 12.7% 10% 7.5% 5% 1.3% NRP NISSAN 180 NISSAN Value-Up 0 FY99 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 NISSAN 180 / FY 2003 Review

  56. Slide 56: NISSAN Value-Up breakthroughs

    NISSAN Value-Up breakthroughs Infiniti global tier-1 luxury brand NISSAN 180 / FY 2003 Review

  57. Slide 57: Infiniti global tier-1 luxury brand

    Infiniti global tier-1 luxury brand Russia Western Europe Korea United States China Japan NISSAN 180 / FY 2003 Review

  58. Slide 58: Infiniti global tier-1 luxury brand: Japan

    Infiniti global tier-1 luxury brand Japan NISSAN 180 / FY 2003 Review

  59. Slide 59: NISSAN Value-Up breakthroughs

    NISSAN Value-Up breakthroughs Infiniti global tier-1 luxury brand Geographic expansion NISSAN 180 / FY 2003 Review

  60. Slide 60: Continuous development of new markets

    Continuous development of new markets 1,750 NRP NISSAN 180 NISSAN Value-Up 1,500 India Pakistan 1,250 (thousand units) 1,000 750 Indonesia Korea / Egypt 500 Middle East Thailand / ASEAN China / Taiwan 250 Mercosur 0 FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 NISSAN 180 / FY 2003 Review

  61. Slide 61: Geographic expansion

    Geographic expansion Russia Middle PakistanChina East Egypt India ASEAN Africa NISSAN 180 / FY 2003 Review

  62. Slide 62: NISSAN Value-Up breakthroughs

    NISSAN Value-Up breakthroughs Infiniti global tier-1 luxury brand Geographic expansion Leading Competitive Countries NISSAN 180 / FY 2003 Review

  63. Slide 63: Leading Competitive Countries

    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 NISSAN 180 / FY 2003 Review

  64. Slide 64: Other breakthroughs: Customer satisfaction

    Other breakthroughs Customer satisfaction NISSAN 180 / FY 2003 Review

  65. Slide 65: NISSAN Value-Up breakthroughs

    NISSAN Value-Up breakthroughs Infiniti global tier-1 luxury brand Geographic expansion Leading Competitive Countries Potential: Light Commercial Vehicles NISSAN 180 / FY 2003 Review

  66. Slide 66: Light Commercial Vehicles

    Light Commercial Vehicles CLIPPER Truck CLIPPER Van AD Van EXPERT VANETTE Van VANETTE T ruck CARAVA N/UR VAN ATLAS 10 ATLAS 20 CIVILIAN CREW CEDRIC taxi KUBISTAR PRIMASTAR INTERSTAR ATLEON NV Queen Cab BAKKIE VANETTE T ruck VANETTE Van NISSAN 180 / FY 2003 Review

  67. Slide 67: Maintaining top operating margin while growing

    Maintaining top operating margin while growing 2003 2007 2002 10 COP Margin (%) TOYOTA BMW 8 2001 HONDA HYUNDAI 6 2000 4 DCX RENAULT PSA VW GM 2 FORD 1999 0 -3 -2 -1 0 1 2 3 4 Global market share change Nissan: Figures of competitors are in 2003 incl. estimation. NISSAN 180 / FY 2003 Review

Nissan Motor — FY2003 Earnings Presentation on 6ix