Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — FY2001 Earnings Presentation
67 slides from Nissan Motor's earnings presentation, May 9, 2002
Slide 1: NISSAN Revival Plan Review & NISSAN 180 Presentation
NISSAN Revival Plan Review & NISSAN 180 Presentation
Slide 2: NISSAN 180
“NISSAN 180
Slide 3: NISSAN Revival Plan Commitments
NISSAN Revival Plan Commitments ü • FY00 Return to profitability ü • FY02 Operating margin > 4.5% of sales ü • FY02 Reduce net consolidated debt to less than 700 billion yen
Slide 4: NRP Review: Consolidated net income
NRP Review FY consolidated net income 350 331.1 300 250 200 (Billion Yen) 150 101.3 100 77.0 48.8 50 0 90 91 92 93 94 95 96 97 98 99 '00 -50 -14 -27.7 -100 -56.0 -86.9 -88.4 -150 -200 -166.1 -684.4
Slide 5: NRP Review: Consolidated operating margin
NRP Review Consolidated operating margin 9% 7.90% 8% 7% 6% 5% 4.75% 4% 4.5% FY02 NRP commitment 2.90% 3% 2.70% 3.00% 2% 1.70% 1% 0.60% 1.30% 0.70% 1.40% 0% 90 91 92 93 94 95 96 97 98 99 00 01 -1% -0.80% -1.00%
Slide 6: NRP Review: Consolidated net automotive debt
NRP Review Consolidated net automotive debt 2,855 2,866 2,737 2,604 2,500 2,398 2,152 2,257 2,100 2,000 1,500 1,349 1,000 953 500 <700 bn yen FY02 NRP commitment 435 0 91 92 93 94 95 96 97 98 99 '00 01
Slide 7: Agenda
Agenda • Introduction NRP review • Fiscal year 2001 business performance • Fiscal year 2001 financial preview • NISSAN 180 • Outlook for fiscal year 2002
Slide 8: NRP Review: Purchasing cost reductions
NRP Review Purchasing cost reductions (purchasing cost reductions baseline as of FY 1999) 100 • Parts suppliers - 8% down 40% 90 • Service suppliers - 11% -14.5% down 60% -20% NRP Target 80 - 20% 70 FY00 FY01 FY02
Slide 9: NRP Review: Manufacturing efficiencies achieved
NRP Review Manufacturing efficiencies achieved Average First half Pre Pre NRP NRPfiscal year 2001 Shonan 52% 52% 78% 78% Kyushu 64% 64% 75% 75% Tochigi 28% 28% 74% 74% Oppama 45% 45% 75% 75% 0% 20% 40%Average 60% Average 80% 100% 51% 75%
Slide 10: Japan manufacturing system: 1999
Aichi Kyoto Tochigi Kyushu Ma Shonan Oppama Sk rch ylin /C Murayama e/ ube La ur el Pr e Ce P B sea firo rim lue /I3 er bi 0/ a/G rd M NRP Review Su ax 20 nn ima y/ Alm er Ce dr a ic C G Ce lor rew dr ia w i Ce c se dr da ic n G Ci lori m a a/ Pr Q45 es ide nt Si Fa lvia irla Av Win dy en gro ir ad
Slide 11: Japan manufacturing system: 2001
Ce Tochigi Kyushu Shonan firo Oppama /I3 0/ M a Sk xim B y a Ce line dr GT ic R Gl or ia F NRP Review Pr R - es L ag S e Te er rra en no a /E lgr SM an Ca d rav an Sa f Da ari tsu Ce n dr Cr Av ic se ew en da ir n Pr air ie 4 plants - 15 platforms Japan manufacturing system: 2001
Slide 12: NRP Review: Reduced outlets
NRP Review Reduced 355 outlets Reduced 18 domestic consolidated dealers 3000 3,005 2,650 2000 200 -355 1000 98 80 100 0 0 Points of sale Dealers As of March. 2002
Slide 13: Headcount reduced below target
NRP Review Headcount reduced below target 150,000 Thousand of employees, consolidated headcount 148,000 140,000 141,500 133,800 130,000 NRP Target: 127,000 125,100 120,000 3/99 3/00 3/01 3/02
Slide 14: Asset sale proceeds
NRP Review Asset Asset sale sale proceeds proceeds Billion Billion Yen Yen Cumulative Cumulative asset asset sales sales 530 530 (FY (FY 2000 2000 & & 2001) 2001) Fiscal Fiscal year year 2001 2001 192 192 Marketable Marketable securities securities 119 119 Real Real estate estate 73 73
Slide 15: Agenda
Agenda • Introduction NRP review • Fiscal year 2001 business performance • Fiscal year 2001 financial performance • NISSAN 180 • Outlook for fiscal year 2002
Slide 16: Retail Sales by Region
Fiscal Year 2001 (K units) Retail Sales by Region 800 733 714 744 719 700 620 600 17.9% 4.2% 571 share share 535 500 484 400 2.5% 300 share 200 100 0 JAPAN USA EUROPE GOM FY2000 FY2001
Slide 17: Global Sales Volume
Global Sales Volume FY00 FY00 retail retail sales: sales: 2,633,000 2,633,000 Up 4.0% Down 1.4% FY01 FY01 retail retail sales: sales: FY99 FY99 retail retail sales: sales: 2,530,000 2,597,000 2,597,000 2,530,000
Slide 18: More than 55,000 orders by end of April
Fiscal Fiscal Year 2001 Year 2001 More than 55,000 orders by end of April
Slide 19: 40% of buyers are new NISSAN buyers
Fiscal Year 2001 40% of buyers are new NISSAN buyers
Slide 20: Fiscal Year 2001: Chappo
Fiscal Year 2001 Chappo
Slide 21: More than 9,500 orders by end of April
Fiscal Year 2001 More than 9,500 orders by end of April
Slide 22: U.S. Sales % change from previous year
Fiscal Year 2001 U.S. Sales % change from previous year 55 45 % change in sales 35 25 NISSAN 15 Up 9.4% 5 NISSAN Down 14% -5 -15 -25 -35 First Half FY 01 Second Half FY 01
Slide 23: Car of the Year awards
Fiscal Year 2001 2002 North American Car of the Year Award 2002 Canadian “Car of the Year” & “Best New Design”
Slide 24: Incentives in USA
Fiscal Year 2001 Incentives in USA ($/unit) 4,000 FORD 3,500 CHRYSLER 3,000 2,500 TOYOTA 2,000 1,500 NISSAN HONDA 1,000 500 1996 1997 1998 1999 2000 2001 2002 (Source: CNW Report)
Slide 25: New ALTIMA Review
New ALTIMA Review • Transaction price equal to Camry higher than current Accord • New ALTIMA buyer younger than competition • Stimulating sales of other products
Slide 26: Agenda
Agenda • Introduction NRP review • Fiscal year 2001 business performance • Fiscal year 2001 financial performance • NISSAN 180 • Outlook for fiscal year 2002
Slide 27: Summary Review
Fiscal Year 2001 Summary Review FY00 FY00 FY01 FY01 Change Change Unit Unit Sales Sales k/unit k/unit 2,633 2,633 2,597 2,597 -1.4% -1.4% (consolidated (consolidated retail) retail) Net Net Sales Sales billion billion yen yen 6,089.6 6,089.6 6,200 6,200 +1.8% +1.8%
Slide 28: Consolidated operating profit
Fiscal Year 2001 FY consolidated operating profit 490 500 450 400 Up 68% 350 290 300 (billion yen) 250 197 200 176 150 110 84 83 100 37 41 50 0 91 92 93 94 95 96 97 98 99 '00 01 -50 -100 -48 -58 Figures before FY94 are adjusted by current rate method
Slide 29: Consolidated operating margin
Fiscal Year 2001 Consolidated operating margin 9% 8% 7.90% 7% 6% 5% 4.75% 4% 4.5% FY02 NRP commitment 2.90% 3% 2.70% 3.00% 2% 1.70% 1% 0.60% 1.30% 0.70% 1.40% 0% 90 91 92 93 94 95 96 97 98 99 00 01 -1% -0.80% -1.00%
Slide 30: Impacts on operating profit
Fiscal Year 2001 Impacts on operating profit 600 Product Product Purchasing Purchasing enrichment enrichmentVolume/ cost cost Volume/ Foreign -62 -62 Foreign 500 reductions reductions mix mix exchange exchange +245 R&D +245 R&D -71 -71 +147 +147 FY FY 01 01 -28 -28 Others Others O.P. O.P. 400 -9 -9
Slide 31: Operating profit by region
Fiscal Year 2001 Operating profit by region JAPAN USA (+CAN) 290 290 200 200 174.3 174.3 159 159 100 100 113.4 113.4 0 0 FY00 FY01 FY00 FY01 EUROPE GOM 200 200 100 100 0 -27.3 -27.3 33 0 42.2 42.2 58 58 FY00 FY01 FY00 FY01 Eliminations: FY00: 12.3 FY01: 20
Slide 32: Summary Review
Fiscal Year 2001 Summary Review Billion Billion Yen Yen FY00 FY00 FY01 FY01 Change Change Unit Unit Sales Sales k/unit k/unit 2,633 2,633 2,597 2,597 -1.4% -1.4% (consolidated (consolidated retail) retail) Net Net Sales Sales billion billionyen yen 6,089.6 6,089.6 6,200 6,200 +1.8% +1.8% Operating O
Slide 33: Return & Rewards
Fiscal Year 2001 Return & Rewards FY00 FY00 FY01 FY01 % % Change Change Dividend Dividend 77 yen yen 88 yen yen +14% +14% 25000 1200 NISSAN 20000 1000 +136% 800 15000 600 10000 400 5000 Nikkei 200 -45% 0 0 April 3, 2000 FY 00 FY 01 May 8, 2002
Slide 34: Summary Review
Fiscal Year 2001 Summary Review Billion Billion Yen Yen FY00 FY00 FY01 FY01 Change Change Unit Unit Sales Sales 2,633 2,633 2,597 2,597 -1.4% -1.4% (consolidated (consolidated retail) retail) Net Net Sales Sales 6,089.6 6,089.6 6,200 6,200 +1.8% +1.8% Operating Operating Profit Profit 290.3 290.3 49
Slide 35: Consolidated net automotive debt
Fiscal Year 2001 Consolidated net automotive debt 2,855 2,866 2,737 2,604 2,500 2,398 2,152 2,257 2,100 2,000 1,500 1,349 Down 54.3%, 518 bn yen 1,000 953 500 435 0 91 92 93 94 95 96 97 98 99 '00 01
Slide 36: Agenda
Agenda • Introduction NRP review • Fiscal year 2001 business performance • Fiscal year 2001 financial performance • NISSAN 180 • Outlook for fiscal year 2002
Slide 37: NISSAN 180 targets
NISSAN 180 1 million additional units worldwide FY04 10/04 to 9/05 8 % operating margin with constant accounting standards 0 net automotive debt at end FY04 with constant accounting standards
Slide 38: Foreign currency assumptions
NISSAN 180 Foreign currency assumptions 140 130 US $ 125/$ 120 115/$ 110/€ 110 100/$ € 100 Euro € 90 80 FY99 FY00 FY01 FY 2002 FY 2003-4 Beyond FY 04 100/$ €
Slide 39: NISSAN 180: Revenue, Cost, Alliance
NISSAN 180 NISSAN 180 More Maximize Revenue Alliance Less More Quality with Cost & Speed Renault
Slide 40: Global sales and market share targets
NISSAN 180 4,000 3.6 million Global Global Target Target Market Market Share Share 3,500 G.O.M. 6.1% 3,000 +300K** 2.59 million thousa nd. units 2,500 Europe 3.1% 2,000 +100K 1,500 U.S. +300K 6.2% 1,000 500 Japan +300K 22.5% 0 2001 By the end of FY04 (10/04 to 9/05) ** incl. Mexico and Canada
Slide 41: Models among the most innovative cars in Japan
NISSAN 180 Models in the top 10 most innovative cars in Japan Fairlady Z Fairlady Z None Cima Cube Primera sed 180SX Cima Primera wgn Infiniti Q45 Skyline GT-R 1991 1993 1995-97 1999 2001
Slide 42: 28 all new products
NISSAN 180 FY00 FY01 FY02 FY03 FY04 28 all new products 4 5 12
Slide 43: NISSAN 180 product launch schedule
NISSAN 180 FY00 FY01 FY02 FY03 FY04 4 5 12ï16ð
Slide 44: Regional retail focus
NISSAN 180 Japan retail focus – Convenient retailer strategy – New conquest strategy – Effective outlet management Europe retail focus – Build the brand – Implement hub strategy with Renault U.S retail focus – Improve CSI & SSI scores – Marketing & advertising skills – Improve distribution network –
Slide 45: NISSAN 180: Revenue, Cost, Alliance
NISSAN 180 NISSAN 180 More Maximize Revenue Alliance Less More Quality with Cost & Speed Renault
Slide 46: Less costs: Purchasing cost reductions
NISSAN 180 Less costs Purchasing Purchasing cost cost reductions reductions 15% 15% (purchasing cost reductions baseline as of FY 1999) 100 •• Higher Higher volumes volumes • 28 products 9 New 90 -20% - 11% –designed to cost Products • Nissan 3,3,3 - 20% 80 28 New -15% 50%Products 70 From 3,3,3 FY00
Slide 47: Less costs
NISSAN 180 Less costs • Purchasing • Manufacturing & logistics – Reduce 12% in three years • Distribution
Slide 48: Reduce global distribution costs
NISSAN 180 Reduce global distribution costs by 3% points to 24% Distribution Distribution Distribution Distribution 27% 27% 24% Purchasing Purchasing 24% Others Others As % of net sales
Slide 49: Less Costs
NISSAN 180 Less Costs • Purchasing • Manufacturing & logistics – Reduce 12% in three years • Distribution • R&D expenses remain 4%-4.5% of revenues • Eliminate finance costs
Slide 50: Eliminate financial costs
NISSAN 180 Eliminate financial costs 100 90 90 80 70 60 billion yen 60 50 40 "0" 31 "0" debt debt 30 20 20 "0" "0" costs costs 10 0 '98 '99 '00 '01 '04
Slide 51: NISSAN 180: Revenue, Cost, Alliance
NISSAN 180 NISSAN 180 More Maximize Revenue Alliance Less More Quality with Cost & Speed Renault
Slide 52: NISSAN Quality 3,3,3
NISSAN 180 NISSAN “QUALITY 3,3,3” Category Indicator Product Perceived Overall Opinion Attractiveness Attractiveness Owner’s Satisfaction JDP APEAL Product Quality Initial JDP IQS Reliability JDP VDI, SOFRES Sales & Service Sales SSI Service CSI
Slide 53: Cross functional team line-up
NISSAN 180 Original CFT’s New CFT Line-up [ Business development [ Associated Business [ Purchasing [ Supply Chain Management [ Intellectual Assets Management [ Manufacturing & Logistics [ Fleet Business [ R&D [ Purchasing -- Nissan 3-3-3 [ Sales & Marketing [ Manufacturing & Logistics [ G&A [ R&D [
Slide 54: NISSAN 180: Revenue, Cost, Alliance
NISSAN 180 NISSAN 180 More Maximize Revenue Alliance Less More Quality with Cost & Speed Renault
Slide 55: NISSAN RENAULT Alliance
NISSAN 180 NISSAN RENAULT Alliance 15% NISSAN 13.5% Nissan 44.4% Renault Additional 1.5% 61.5% Other
Slide 56: Platform and power-train commonization
NISSAN 180 Main Main Markets Markets Platform Platform and and power-train power-train commonization commonization 10 10 platforms platforms by by 2010 2010 B-platform B-platform (March/Micra/Cube) (March/Micra/Cube) 88 engine engine families families C- C- platform platform 77 transmission transmis
Slide 57: NISSAN 180: Revenue, Cost, Alliance
NISSAN 180 NISSAN 180 More Maximize Revenue Alliance Less More Quality with Cost & Speed Renault
Slide 58: Agenda
Agenda • Introduction NRP review • Fiscal year 2001 business performance • Fiscal year 2001 financial performance • NISSAN 180 • Outlook for fiscal year 2002
Slide 59: FY2002 Global sales volume up 7.5%
FY 2002 FY01 FY01 retail retail sales: sales: FY02 FY02 forecast: forecast: 2,597,000 2,597,000 2,792,000 2,792,000 Global sales volume up 7.5%
Slide 60: Supported by the biggest product year in NISSAN's history
FY 2002 Supported by the biggest product year in NISSAN’s history Europe Japan U.S. Primera Moco Z-Car LCV Elgrand Murano LCV Z-Car FX45 Cube Maxima Sedan G35 coupe Coupe M45 GOM X-Trail Platina (Mex) Z-Car C-sedan Q45 sedan
Slide 61: FY02 sales forecast by region: Japan
FY 2002 FY02 sales forecast by region JAPAN ØØ TIV TIV down down 1.1% 1.1% (excl. (excl. mini) mini) ØØ Domestic Domestic sales sales up up 6.1% 6.1% (excl. (excl. mini) mini) ØØ Share Share up up 1.3 1.3 pts pts to to 19.2% 19.2% (excl. (excl. mini) mini) ØØ Moco, Moco, Elgrand, Elgrand, Z, Z, Cube
Slide 62: FY02 sales forecast by region: USA
FY 2002 FY02 sales forecast by region USA Ø Ø U.S. U.S. TIV TIV down down 8.2% 8.2% Ø Ø U.S. U.S. sales sales up up 7.3% 7.3% Ø Ø U.S. U.S. share share up up 0.7 0.7 pts pts to to 4.9% 4.9% Ø Ø Nissan: Nissan: Z, Z, Murano, Murano, Maxima Maxima (K units) Ø Ø Infiniti: Infiniti: M45, M45, G35 G35 co
Slide 63: FY02 sales forecast by region: Europe
FY 2002 FY02 sales forecast by region EUROPE Ø Ø TIV TIV down down 4.2% 4.2% Ø Ø Sales Sales up up 1.8% 1.8% Ø Ø Market Market share share up up 0.2 0.2 pts pts to to 2.7% 2.7% Ø Ø Primera Primera ,, 22 LCVs LCVs from from Renault Renault (K units) 800 714 757 719771 700 600 501 500 484 400 300 200
Slide 64: FY02 sales forecast by region: GOM
FY 2002 FY02 sales forecast by region GOM (K units) 719771 FY2001 FY2002 800 714 757 700 620 655 600 501 500 484 400 300 200 100 0 JAPAN USA EUROPE GOM
Slide 65: FY2002 Risks and Opportunities
FY 2002 Risks Opportunities • Strengthening of • More favorable Total yen to US$ Industry Volumes • Harsher competitive • NISSAN 180 environment
Slide 66: FY2002 financial forecast
FY 2002 (billion yen) FY 2001 FY 2002-F Sales 6,200 6,500 Operating profit 490 553 Ordinary profit 415 488 Net income 372 380 Capital Exp. 300 350 Net auto debt 435 250 FY01 FY02-F Yen/Dollar 125 125 Yen/Euro 109 110
Slide 67: NISSAN 180
NISSAN 180