Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — H1 FY2001 Earnings Presentation
49 slides from Nissan Motor's earnings presentation, Oct 18, 2001
Slide 1: Nissan Revival Plan Two Years After Announcement and FY2001 Half-Year Financial Preview
Nissan Revival Plan Two Years After Announcement and Fiscal Year 2001 Half-Year Financial Preview
Slide 2: Carlos Ghosn, President & CEO
Carlos Ghosn President & CEO Nissan Motor Co., Ltd.
Slide 3: Agenda
Agenda • Introduction • First half fiscal year 2001 performance • First half fiscal year 2001 financial estimate • Fiscal year 2001 Outlook • Conclusion
Slide 4: Global sales volume (retail), first half FY2001
First Half Fiscal Year 2001 Global sales volume (retail) First Half FY2001 : 1,286,000 1,286,000 First Half FY2000 : 1,337,000 Down 3.8% 3.8%
Slide 5: Nissan retail sales: Japan
First Half Fiscal Year 2001 Nissan retail sales (First Half FY00 -v- FY01) 500 Japan TIV up 0.9% 400 Nissan up 2.1% (th o u sa n d u n its) 335 342 Market share 17.6% 300 200 100 0 J ap an U .S . E u ro p e GOM 2000 2001
Slide 6: Japan product launches
Fiscal Year 2001 Japan product launches Fiscal year 2000 Fiscal year 2001 Bluebird/Sylphy Cima Caravan all new X-Trail Primera Skyline Stagea March (Mar 02) Avenir Liberty Elgrand Wingroad minor Cefiro Presage/Bassara Atlas Skyline Cube
Slide 7: Fiscal Year 2001 full year forecast: Japan
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% 18.2% up up 0.4 0.4
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 ppppppp ppppppp ppppppp ppppppp ppppppp pppp ppppppp pppppp p 12% of total vol
Slide 9: Nissan retail sales: U.S.
First Half Fiscal Year 2001 Nissan retail sales (First Half FY00 -v- FY01) 500 U.S. TIV down 5.7% 406 Nissan U.S. down 14.0% 400 349 Market share 4.0% (th o u sa n d u n its) 335 342 300 200 100 0 J ap an U .S . E u ro p e GOM 2000 2001 *N.A. down 12.7% with Canada up 7.4%
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
First Half Fiscal Year 2001 U.S. incentive levels (through September Ford Chrysler GM $3,000 $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) 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: U.S. segment review
First Half Fiscal Year 2001 U.S. segment review
Slide 14: Fiscal Year 2001 full year forecast: Japan and U.S.
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:: 15.7million 15.7million do
Slide 15: Nissan retail sales: Europe
First Half Fiscal Year 2001 Nissan retail sales (First Half FY00 -v- FY01) 500 Europe TIV down 1.7% Nissan down 5.5% 406 Market share 2.8% 400 349 (th o u sa n d u n its) 335 342 289 273 300 200 100 0 J ap an U .S . E u ro p e GOM 2000 2001 *Europe first half FY is Jan-June
Slide 16: Europe product launches
Fiscal Year 2001 Europe product launches Fiscal year 2000 Fiscal year 2001 Almera X-Trail Almera Tino all new Navara minor pickup *Europe FY is Jan-Dec
Slide 17: Fiscal Year 2001 full year forecast: Japan, U.S., Europe
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 18: Nissan retail sales: General overseas markets
First Half Fiscal Year 2001 Nissan retail sales (First Half FY00 -v- FY01) 500 General overseas markets 406 Nissan up 4.6% 400 • Mexico up 14.1% 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 19: GOM product launches
Fiscal Year 2001 GOM product launches Fiscal year 2000 Fiscal year 2001 Datsun/Pickup X-Trail Bluebird Sylphy/HS Australia Mexico Mexico Thailand Australia Australia GCC South Africa GCC Patrol Singapore Taiwan Caravan Australia Thailand Mexico GCC Malaysia GCC Thailand Bluebird Sylphy/HS Hong Kong
Slide 20: Regional distribution comparison of 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 21: Fiscal Year 2001 full year forecast: all regions
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 22: Purchasing cost reductions
First Half Fiscal Year 2001 Purchasing 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 23: Japan manufacturing system: 1999
Kyoto Aichi M Shonan Tochigi Kyushu Oppama ar Murayama Sk ch/ C 0 1 2 3 4 5 6 7 yl in ub e/ e La Pr ure es l Bl ea Pr ue C ef ime bir iro r d /I a/G 3 Su 0/M 20 nn a y / xim A C lm a ed e ric C r e r a G w C l ed ori r a C ic s w ed ed ric an G C lo im ri a/ a Pr Q4 es 5 id en t Si l Fa via ir W lad
Slide 24: 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 ne a ed G ric TR G lo ria FR Pr - L es ag Se e Te re na rra no S /E M lg ra C nd ar av 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 4 plants 15 platforms Japan manufacturing system: 2001 24
Slide 25: Japan manufacturing system: capacity utilization
Japan manufacturing system Capacity Utilization 7 6 Pre 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 80 90 40 70 10 10 4 plants Average Average 15 platforms 51% 75.7% 25 * plu
Slide 26: Japan manufacturing system: 2004
Japan manufacturing system: 2004 7 6 Shonan 5 Kyushu 4 Tochigi 3 2 Oppama 1 0 ir/P n ie cS d a n n rar ed n an tsu gra -L no M C -L B da rav S FR FF Da / El Se Ca dri en Ce Av rra Te 4 plants 12 platforms 26
Slide 27: First Half Fiscal Year 2001 restructuring highlights
First Half Fiscal Year 2001 • Improved R&D efficiency ¾ R&D cost per vehicle declined more than 25% • Domestic network restructuring ¾ 335 outlets closed ¾ 12 dealers transferred to private sector
Slide 28: 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 28 (including temp & part time at start of FY99)
Slide 29: Reallocating resources: asset sale proceeds
First Half Fiscal Year 2001 Reallocating resources Asset sale proceeds billion billion yen yen Total 81 Marketable securities 59 Real estate 22 Cumulative asset sales 422 Apr. Apr. 01, 01, 2000 - Sep. 30, 2001 - - 85% of plan
Slide 30: Nissan Motor Company
NISSAN MOTOR COMPANY
Slide 31: 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 32: Fiscal Year 2002 Japan product launches
Fiscal Year 2002 Japan product launches Fiscal year 2002 Minicar Z-car Cube Luxury coupe all new Luxury RV Luxury sedan March (02/03) (02/03) sedan wagon RV minor sedan RV wagon sedan
Slide 33: Fiscal Year 2002 U.S. product launches
Fiscal Year 2002 U.S. product launches Fiscal year 2002 Z-car SUV Maxima Nissan Altima (01/08) (01/08) Infiniti G35 New car New Car SUV
Slide 34: Fiscal Year 2002 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 35: Fiscal Year 2002 GOM 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 36: Fiscal Year 2002 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 coupe 2 luxury cars Luxury sedan GOM X-Trail Small Car Z-Car C-sedan Q45 sedan
Slide 37: Investments
First Half Fiscal Year 2001 Investments • United States • Thailand – decision not to take control • Indonesia • China opportunity Canton Plant as of October 2001 Canton Plant as of October 2001
Slide 38: Agenda
Agenda • Introduction • First half fiscal year 2001 performance • First half fiscal year 2001 financial estimate
Slide 39: Half year consolidated operating profit FY91-01
First Half Fiscal Year 2001 Estimated consolidated net sales: 3 trillion yen 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 -100 Figures before FY94 are adjusted
Slide 40: Half year consolidated operating margin FY91-01
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 41: Half year operating profit by geographic segment: Japan and U.S.
First Half Fiscal Year 2001 Half year operating profit by geographic segment 130 130 110 Japan 129 110 U.S. 90 90 81 59 billion yen billion yen 70 70 50 50 47 30 30 10 10 -10 FY00 FY01 -10 FY00 FY01 -30 up 120% -30 down 42%
Slide 42: Half year operating profit by geographic segment: Europe and G.O.M.
First Half Fiscal Year 2001 Half year operating profit by geographic segment 50 50 Europe G.O.M. 31 30 30 billion yen billion yen 16 10 10 FY00 FY01 FY00 FY01 -10 -10 -5 -15 -30 -30 up 94%
Slide 43: 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 16 110.0 10
Slide 44: First Half Fiscal Year 2001 estimated figures
First Half Fiscal Year 2001 First half estimated figures (billion yen) 09/00 09/01 C hange N etsales (revenue) 3,018.3 3,000 = O perating profit 134.4 187 + 39.1% O perating m argin 4.5% 6.2% -- N etincom e 172.0 230 + 33.7% N etreturn on sales 5.7% 7.7% --
Slide 45: 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 1,500 (billion yen) 1,349 FY 02 953 Commitment 1,000 850 804 700 500 0 91 92 93 94 95 96 97 98 99 00 H Y01 01 02 Initial Target
Slide 46: Agenda
Agenda • Introduction • First half fiscal year 2001 performance • First half fiscal year 2001 financial estimate • Fiscal year 2001 Outlook
Slide 47: 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 48: 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 49: Agenda
Agenda • Introduction • First half fiscal year 2001 performance • First half fiscal year 2001 financial estimate • Fiscal year 2001 Outlook • Conclusion