Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — FY2002 Earnings Presentation
41 slides from Nissan Motor's earnings presentation, April 2003
Slide 1: NISSAN 180 Update
MOTOR COMPANY ——_NISSAN-80-Update
Slide 2: Net revenue
Net revenue 6,850 +14.5% 6,750 6,500 (billion yen) 6,250 6,196 + .7% 6,090 6,000 5,977 5,750 5,500 FY99 FY00 FY01 FY02 FY02 figures: Preliminary subject to change at official filing
Slide 3: Consolidated operating profit
Consolidated operating profit 800 737 700 600 (billion yen) 500 400 489 300 290 200 100 83 0 FY99 FY00 FY01 FY02 FY02 figures: Preliminary subject to change at official filing
Slide 4: Consolidated operating margin
Consolidated operating margin 10.8% 10.8% 10.0 9.0 7.9% 8.0 7.0 8%: NISSAN 180 Commitment 6.0 5.0 4.75% 4.0 3.0 2.0 1.4% 1.0 0 FY99 FY00 FY01 FY02 FY02 figures: Preliminary subject to change at official filing
Slide 5: Consolidated net automotive debt
Consolidated net automotive debt 2,100 2,000 1,500 1,349 (billion yen) 1,000 953 500 432 0 8 billion yen cash positive* FY98 FY99 FY00 FY01 FY02 * With constant accounting standards FY02 figures: Preliminary subject to change at official filing
Slide 6: Agenda
Agenda Introduction FY 2002 review FY 2003 outlook Conclusion
Slide 7: NISSAN 180 commitments
NISSAN 180 1 million additional units worldwide FY04 (measured Oct 04 to Sept 05) % operating margin 8 with constant accounting standards 0 net automotive debt at end FY04 with constant accounting standards
Slide 8: Global retail sales
Fiscal year 2002 Global retail sales 2,771 +174 2,750 +6.7% units) (thousand units) 2,633 2,597 2,530 (thousand 2,500 2,250 2,000 FY99 FY00 FY01 FY02
Slide 9: Retail sales by region
Fiscal year 2002 FY01 FY02 1000 Retail sales by region 900 816 +102 +102 800 714 (thousand units) 700 Nissan sales +14.3% 600 TIV +0.8% 500 400 300 200 100 0 JAPAN USA EUROPE GOM *GOM including Canada and Mexico
Slide 10: Market share in Japan
Fiscal year 2002 (Excluding mini) 35% Market share in Japan 31% 27% First 1%+ 23% gain in 31 years 19% 19% 15% 1975 1980 1985 1990 1995 2000 2005
Slide 11: Retail sales by region
Fiscal year 2002 FY01 FY02 1000 Retail sales by region 900 816 800 726 714 719 +7 +7 (thousand units) 700 600 Nissan sales +1.0% 500 TIV --1.9% 1.9% 400 300 200 100 0 JAPAN USA EUROPE GOM *GOM including Canada and Mexico
Slide 12: Infiniti Division unit volume
Fiscal year 2002 100 Infiniti Division unit volume 95,570 +35% 90 (thousand units) 80 77,803 75,456 70,744 70 60 FY99 FY00 FY01 FY02
Slide 13: Incentives $ per unit U.S.
Fiscal year 2002 4,000 Incentives $ per unit U.S. 3,500 3,000 LEXUS 2,500 2,000 1,500 BMW 1,000 INFINITI 500 MERCEDES FY99 FY00 FY01 FY02 Source: CNW Marketing Research
Slide 14: Incentives $ per unit U.S.
Fiscal year 2002 4,000 Incentives $ per unit U.S. GM 3,500 FORD CHRYSLER 3,000 2,500 TOYOTA 2,000 NISSAN 1,500 HONDA 1,000 500 FY99 FY00 FY01 FY02 Source: CNW Marketing Research
Slide 15: Retail sales by region
Fiscal year 2002 FY01 FY02 1000 Retail sales by region 900 816 800 Nissan sales --3.8% 3.8% 714 719 726 (thousand units) 700 TIV --2.0% 2.0% 600 493 474 474 500 -19 400 300 200 100 0 JAPAN USA EUROPE GOM *GOM including Canada and Mexico
Slide 16: Retail sales by region
Fiscal year 2002 FY01 FY02 1000 Retail sales by region 900 816 755 800 +83 +83 714 719 726 (thousand units) 700 672 600 500 493 474 400 Nissan sales +12.3% 300 200 100 0 JAPAN USA EUROPE GOM *GOM including Canada and Mexico
Slide 17: Retail sales by region
Fiscal year 2002 FY01 FY02 220 Retail sales by region 200 191 212 180 +11% (thousand units) 160 140 120 100 80 77 +82% 59 66 60 +12.4% 45 59 42 +12.8% 40 20 0 MEXICO CHINA CANADA AUSTRALIA
Slide 18: Fiscal year 2002 results
Fiscal year 2002 (billion yen) FY 01 FY 02 Change Revenue* 6,196.2 6,850 10.6% Operating profit 489.2 737 50.7% Ordinary profit 414.7 Net income 372.3 Net auto debt 431.7 FY02 figures: Preliminary subject to change at official filing * On a consistent basis up 9.8% Impact from change in scope: 46.0
Slide 19: Consolidated operating profit
Fiscal year 2002 800 Consolidated operating profit 737 700 600 yen )) billion yen 489 500 (( billion 400 290 300 197 200 176 100 84 110 83 37 41 0 91 92 93 94 95 96 97 98 99 00 01 02 (FY) (FY) -50 -48 -58 FY02 figures: Preliminary subject to change at official filing Figures before FY94 are adjusted
Slide 20: Consolidated operating margin
Fiscal year 2002 10.8% 10.8% Consolidated operating margin 10.0 9.0 7.9% 8.0 8%: NISSAN 180 Commitment 7.0 6.0 5.0 4.75% 4.0 3.0% 3.0 1.7% 2.0 1.3% 1.4% 1.0 0.6%-0.8% 0.7% 0 -1.0% 92 93 94 95 96 97 98 99 00 01 (FY) (FY) FY02 figures: Preliminary subject to change at official filing
Slide 21: Impacts on operating profit
Fiscal year 2002 Impacts on operating profit Purchasing cost Purchasing cost reductions reductions FY02 FY02 +227 +227 Manufacturing Manufacturing 800 logistics O.P. O.P. logistics +17 +17 737 Product Product 700 Volume/ Volume/ Sales/finance enrichment R&D Sales/finance enrichment R&D G&A G&A mix m
Slide 22: Operating profit by region
Fiscal year 2002 Operating profit by region (billion yen) 500 JAPAN 500 USA (+CAN) 395 289.7 250 250 243 158.9 0 0 FY01 FY02 FY01 FY02 500 EUROPE 500 GOM 250 250 57.8 77 0 3.2 22 0 FY01 FY02 FY01 FY02 Eliminations: FY01: -20.4, FY02: 0 FY02 figures: Preliminary subject to change at official filing
Slide 23: Fiscal year 2002 results
Fiscal year 2002 (billion yen) FY 01 FY 02 Change Revenue* 6,196.2 6,850 10.6% Operating profit 489.2 737 50.7% Ordinary profit 414.7 709 71.0% Net income 372.3 495 33.0% FY02 figures: Preliminary subject to change at official filing * On a consistent basis up 9.8% Impact from change in scope: 46.0
Slide 24: Nissan versus Nikkei index
Fiscal year 2002 Nissan versus Nikkei index +150% Nissan +100% +50% 0 -50% Nikkei 225 FY99 FY00 FY01 FY02
Slide 25: Three-year dividend policy
NISSAN 180 Three-year dividend policy FY 01 FY 02 FY 03 FY 04 (base) ¥8 ¥14 ¥19 ¥24 / share / share / share / share
Slide 26: Consolidated net automotive debt
Fiscal year 2002 Consolidated net automotive debt 2,855 2,866 2,737 2,500 2,398 2,152 2,257 ( billion yen ) 2,100 2,000 1,500 1,349 1,000 953 8 billion cash positive* 500 432 -8 0 FY92 FY93 FY94 FY95 FY96 FY97 FY98 FY99 FY00 FY01 FY02 * With constant accounting standards FY02 figures: Preliminary su
Slide 27: Fiscal year 2002 results
Fiscal year 2002 (billion yen) FY 01 FY 02 Change Revenue 6,196.2 6,850 10.6% Operating profit 489.2 737 50.7% Ordinary profit 414.7 709 71.0% Net income 372.3 495 33.0% Cash Net auto debt* 431.7 positive (8) - CAPEX 293.8 309 5.2% * With constant accounting standards FY02 figures: Preliminary subje
Slide 28: Return on Invested Capital Automotive business
Fiscal year 2002 Return on Invested Capital Automotive business Consolidated operating profit ROIC= (Fixed assets + Net working capital + Cash on hand ) 25.0% NISSAN 180 target : 20% 20.0% 19.5% 15.0% 12.7% 10.0% 7.5% 5.0% 1.3% 0.0% FY99 FY00 FY01 FY02 FY03 FY04 FY02 figures: Preliminary subject to
Slide 29: Awards
Fiscal year 2002 Awards US Motor Trend G35 Car of the Year G35 coupe Canada Car of the Year Z Track of the Year Murano Brazil Pickup of the Year Frontier
Slide 30: Agenda
Agenda Introduction FY 2002 review FY 2003 outlook Conclusion
Slide 31: 2003 outlook: Global retail sales
Fiscal year 2003 outlook 3,250 Global retail sales 3,040 +9.7% 3,000 2,771 (thousand units) +6.7% 2,750 2,633 2,597 2,530 2,500 2,250 2,000 FY99 FY00 FY01 FY02 FY03 Forecast
Slide 32: 2003 outlook new model events
Fiscal year 2003 outlook 23 new model events Europe Japan U.S. Micra New Presage New Quest Z Coupe Cube derivative Z Roadster Car-derived Van New President Pathfinder Armada Z Roadster Titan King Cab Mini-LCV Titan Crew Cab Mini-Truck Infiniti Full-size SUV Mexico & GOM Infiniti FX35/45 Murano New Q
Slide 33: 2003 outlook: Regional sales volume
Fiscal year 2003 outlook 1,000 Regional sales volume 900 867 852 816 +6.3% 791 800 +17.3% 755 (incl. Mini)(incl. Mini) 726 +4.8% (thousand units) 700 600 530 474 +11.8% 500 400 300 200 100 0 JAPAN USA EUROPE GOM FY02 FY03 forecast *GOM including Canada and Mexico
Slide 34: 2003 outlook: Risks and Opportunities
Fiscal year 2003 outlook Risks Opportunities • Weaker economic • NISSAN 180 conditions in Japan • Further decrease in TIV in US & Europe • Higher-than-foreseen incentives in US & Europe
Slide 35: Foreign exchange assumptions
Fiscal year 2003 outlook Foreign exchange assumptions 140 130 US $ ¥125/€ 120 ¥120/$ 110 Euro € 100 90 80 FY99 FY00 FY01 FY02 FY 03
Slide 36: Financial forecast
Fiscal year 2003 outlook Financial forecast (billion yen) FY 02 FY 03 Change Revenue 6,850 7,450 8.8% Operating profit 737 820 11.3% Ordinary profit 709 781 10.2% Net income 495 495 Stable CAPEX 309 420 35.9% Foreign exchange assumption ¥122/$1 ¥120/$1 ¥118/€1 ¥125/€1 FY02 figures: Preliminary subje
Slide 37: Agenda
Agenda Introduction FY 2002 review FY 2003 outlook Conclusion
Slide 38: FY02 figures: Preliminary subject to change at official filing
FY02 figures: Preliminary subject to change at official filing
Slide 39: ROIC: Return on Invested Capital
ROIC: Return on Invested Capital 20.0% 20.0% 19.5% 15.0% 15.0% 12.7% 10.0% 10.0% 7.5% 5.0% 5.0% 1.3% 00 FY98 FY98 FY99 FY99 FY00 FY00 FY01 FY01 FY02 FY02
Slide 40: Investment in our future
Investment in our future 6 CAPEX 5.6% 5.3% 5.4% % of net revenue 5 4.8% R&D 4.0% 4.4% 4 3.8% 4.2% 3.9% 3.4% 3 FY99 FY00 FY01 FY02 FY03 forecast forecast Canton plant investment included from FY01
Slide 41: Nissan's revival – a snapshot
Nissan’s revival – a snapshot (billion yen) FY 99 FY 00 FY 01 FY 02 FY 03 Unit volume (thousand units) 2,530 2,633 2,597 2,771 3,040 Revenue 5,977 6,090 6,196 6,850 7,450 Operating profit 83 290 489 737 820 Operating margin 1.4% 4.75% 7.9% 10.8% 11.0% Net income -684 331 372 495 495 Net auto debt* 1