Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — H1 FY2024 Earnings Presentation
39 slides from Nissan Motor's earnings presentation, Nov 7, 2024
Slide 1: FY2024 First Half Financial Results
FY2024 First Half Financial Results November 7, 2024 1
Slide 2: Agenda
01 FY2024 H1 Financial Results 02 FY2024 Outlook 03 Turnaround Actions
Slide 3: FY2024 H1 Summary
FY2024 H1 Summary (Yen) NET REVENUE OPERATING PROFIT NET INCOME 5,984.2 B 32.9 B 19.2 B -1% YEAR OVER YEAR -90% YEAR OVER YEAR -94% YEAR OVER YEAR 3
Slide 4: FY2024 H1 Financial Results
FY2024 H1 01 Financial Results 4
Slide 5: FY24 H1 Volume Results
FY24 H1 Volume Results Retail Sales (Thousand units) Production Volume -1.6% -7.9% 1,622 1,596 vs. FY23 1,691 1,558 vs. FY23 359 339 China -5.4% 368 338 China -8.1% 228 222 Japan -2.4% North 628 622 America -1.0% Excluding China: 1,323 Excluding -0.5% 1,220 -7.8% China 158 159 Europe +0.9% 249 253 O
Slide 6: FY24 H1 Financial Performance
FY24 H1 Financial Performance ■ FY23 H1 FY24 H1 (Billion Yen) Operating Profit Net Revenue (OP margin) Net Income * CAPEX R&D 336.7 6,063.3 5,984.2 (5.6%) 295.7 Consolidated 296.2 276.0 230.8 155.2 32.9 (0.5%) 19.2 Operating Profit Net Revenue (OP margin) Free Cash Flow Net Cash 5,494.5 5,352.1 168.
Slide 7: Financial Performance
Financial Performance (Billion Yen) FY23 H1 FY24 H1 Variance FY23 Q2 FY24 Q2 Variance Net Revenue 6,063.3 5,984.2 -79.1 3,145.7 2,985.8 -159.9 Operating Profit 336.7 32.9 -303.8 208.1 31.9 -176.2 OP Margin 5.6% 0.5% -5.1 points 6.6% 1.1% -5.5 points Non-Operating*1 75.9 83.1 38.0 19.0 Ordinary Profi
Slide 8: Operating Profit Variance Analysis
Operating Profit Variance Analysis FY24 H1 Actual vs. FY23 H1 Actual (Billion Yen) +21.2 -194.5 +28.0 336.7 -42.7 -71.3 -44.5 32.9 FY23 Raw Sales Monozukuri FY24 H1 Forex Materials Performance Cost Inflation Others H1 Breakdown Volume/Mix -96.0 Manufacturing -3.9 Monozukuri -58.6 Sales Finance -10.3
Slide 9: FY2024 Outlook
02 FY2024 Outlook 9
Slide 10: FY24 Volume Outlook
• FY2024 OUTLOOK FY24 Volume Outlook Retail Sales (Thousand units) Production Volume vs. Previous 3,650 vs. FY23 Outlook 3,442 3,400 Global -1.2% -6.8% 3,430 3,450 3,200 770 794 690 China -13.1% -10.4% China 780 500 484 480 Japan -0.9% -4.0% 1,410 North 1,340 +6.2% Excluding -5.0% Excluding 1,262 Am
Slide 11: FY24 Outlook
• FY2024 OUTLOOK FY24 Outlook (Billion Yen) FY23 FY24 Previous FY24 Revised Variance Variance vs Actual Outlook Outlook vs FY23 Previous Outlook Net Revenue 12,685.7 14,000.0 12,700.0 +14.3 -1,300.0 Operating Profit 568.7 500.0 150.0 -418.7 -350.0 OP Margin 4.5% 3.6% 1.2% -3.3 points -2.4 points Net
Slide 12: Operating Profit Variance Analysis: Revised vs. Previous Outlook
1 2 Operating Profit Variance Analysis • FY2024 OUTLOOK FY24 Revised Outlook vs. Previous Outlook (Billion Yen) 500.0 -110.0 -200.0 -20.0 -20.0 150.0 FY24 Forex/ Sales Monozukuri FY24 Previous Outlook Raw Material Performance Cost Others Revised Outlook Breakdown Volume/Mix -100.0 Manufacturing -30.
Slide 13: Turnaround Actions
03] Turnaround Actions NISSAN MOTOR CORPORATION
Slide 14: Current Situation
Current Situation Nissan Specific Issues • China: Shift to NEVs / shrinking JV Non-premium market / price Profitability Unable to meet cuts and excess capacity. challenges customer needs in time Shifting • Intensifying competition from market Chinese OEM exports conditions • US: Growing HEV/PHEV Gap
Slide 15: Turnaround Actions
Turnaround Actions Towards a lean, agile, and resilient structure that quickly adapts to business changes FY26 Mid-long term Stabilize & Right-size business Reinforce product / Ensure growth Even at 3.5 million units annual sales, ensure Execute the Arc while enhancing investment sustainable profita
Slide 16: Stabilize & Right-size Business
Stabilize & Right-size Business Maintain healthy level cash flow and improve profitability Measures Fixed Cost reduction -20% global production capacity 300 billion JPY vs FY24 -9K headcount and SG&A reduction Variable cost reduction Reduce variable COGS 100 billion JPY vs FY24 Asset rationalization
Slide 17: Reinforce Product / Ensure Growth
Reinforce Product / Ensure Growth Accelerate the Arc initiatives to maximize market opportunities Portfolio Competitiveness Partnerships • Accelerate introduction of • Reduce development lead • Maximize the Alliance and NEVs in China / PHEV and time to 30 months Honda partnerships e-POWER in the US.
Slide 18: Appendix
TEZ ARC Appendix NISSAN iON MOTOR CORPORATI
Slide 19: FY24 Q2 Volume Results
FY24 Q2 Volume Results Retail Sales (Thousand units) Production Volume -2.8% 833 809 vs. FY23 843 -8.3% vs. FY23 774 197 172 China -12.5% 165 China +2.9% 170 121 124 Japan +2.5% North 300 299 -0.2% Excluding America China: 679 +0.1% 604 Excluding -10.9% China 85 80 Europe -5.0% 130 133 Others +2.0%
Slide 20: FY24 Q2 Financial Performance
FY24 Q2 Financial Performance ■ FY23 Q2 FY24 Q2 (Billion Yen) Operating Profit Net Revenue (OP margin) Net Income * CAPEX R&D 3,145.7 208.1 2,985.8 (6.6%) Consolidated 190.7 130.0 141.9 147.8 90.8 31.9 (1.1%) -9.3 Operating Profit Net Revenue (OP margin) Free Cash Flow Net Cash 134.4 1,500.9 & Elimi
Slide 21: Operating Profit Variance Analysis: FY24 Q2
Operating Profit Variance Analysis FY24 Q2 Actual vs. FY23 Q2 Actual (Billion Yen) 208.1 +4.3 +7.3 -84.1 -42.7 -44.2 -16.8 31.9 FY23 Raw Sales Monozukuri FY24 Q2 Forex Materials Performance Cost Inflation Others Q2 Breakdown Volume/Mix -61.1 Manufacturing -6.7 Monozukuri -37.7 Sales Finance -1.0 Sel
Slide 22: Sales Financing
Sales Financing ■ FY23 H1 FY24 H1 (Billion Yen) Net Credit Net Revenue Operating Profit Total Assets Penetration Loss Ratio 632.1 167.9 10,214.7 10,144.3 568.9 one time accounting 17.2 149.0 adjustment 47.5% 0.55% 47.4% 0.37% Funding Sources (as of Sep. 2024) Total Funding Amount: 9,432 Billion Yen
Slide 23: Penetration
Penetration ■ Lease Retail N FS N MAC NCF NRFM D NAF/ D N F L 75% 70% 63% 51% 60% 47% 29% 3% 33% 35% 50% 2% 44% 25% 32% 26% 4% 6% 17% 3% 44% 48% 42% 35% 31% 29% 29% 25% 27% 23% FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 H1 H1 H1 H1 H1 H1 H1 H1 H1 H1 NFS: Nissan Financial Services, sales finan
Slide 24: Net Credit Loss Ratio
Net Credit Loss Ratio N FS N MAC NCF D NAF/ D N F L Lease Retail Total Lease Retail Total Lease Retail Total Lease Retail Total FY23 H1 0.02% 0.05% 0.04% -0.03% 0.56% 0.34% 0.00% 0.05% 0.03% 0.99% 0.53% 0.59% FY24 H1 0.02% 0.06% 0.06% 0.34% 0.79% 0.63% 0.05% 0.12% 0.08% 1.03% 0.66% 0.74% *1 *2 Varia
Slide 25: Operating Profit & Asset
Operating Profit & Asset N FS N MAC NCF NRFM D NAF/ D N F L (Billion JPY) (Million USD) (Million CAD) (Million MXN) (Million CNY) Asset OP Asset OP Asset OP Asset OP Asset OP FY23 H1 1,376.7 16.9 39,735 606 6,705 105 92,098 2,462 50,879 1,237 FY24 H1 1,485.0 19.0 41,358 451 6,947 102 112,516 2,393 3
Slide 26: FY24 H1 Sales Performance
FY24 H1 Sales Performance TIV (Million units) Retail Volume (Thousand units) +2.0% 1,622 -1.6% 1,596 vs. FY23 41.43 vs. FY23 40.60 359 339 China -5.4% 10.82 10.99 China +1.5% 228 222 Japan -2.4% 2.23 2.17 Japan -2.6% North 9.63 9.59 America -0.4% North (8.05) (7.90) (US) (-1.9%) 628 622 Excluding Am
Slide 27: FY24 Q2 Sales Performance
FY24 Q2 Sales Performance TIV (Million units) Retail Volume (Thousand units) -2.8% +0.3% 833 809 vs. FY23 20.80 20.87 vs. FY23 197 172 China -12.5% 5.88 5.75 China -2.2% 121 124 Japan +2.5% 1.16 1.17 Japan +1.3% North 4.79 4.71 America -1.8% North (4.00) (3.87) (US) (-3.4%) 300 299 Excluding America
Slide 28: Japan
Japan TIV (Thousand units) Retail Sales Production -2.6% -13.4% vs. FY23 2,227 -2.4% 354 2,169 vs. FY23 228 222 vs. FY23 307 212 Export -12.9% 1,426 1,397 Registered -2.0% 143 134 Registered -6.4% 185 142 Domestic -14.0% 801 772 Mini -3.6% 85 88 Mini +4.4% 122 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1
Slide 29: North America
North America TIV (Thousand units) Retail Sales Production -2.6% vs. FY23 -0.4% -1.0% 612 596 9,630 9,591 vs. FY23 628 622 vs. FY23 1,576 1,694 Others +7.5% 167 173 Others +3.8% 311 Others +9.9% 342 8,054 7,897 US -1.9% 461 449 US -2.7% 301 US -15.5% 254 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24
Slide 30: Europe
Europe TIV (Thousand units) Retail Sales Production +5.5% +0.9% 8,515 vs. FY23 -7.5% 8,071 158 159 154 418 871 Russia +108.6% 142 Excl. 7,653 7,644 Russia -0.1% FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 H1 FY24 H1 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 FY23 Q2 FY24 Q2 Excl. Excl. 3,695 3,471 -6.1% 85 80 -5.0% 7
Slide 31: China
China TIV (Thousand units) Retail Sales Production -2.1% -9.1% -11.7% 17.3 16.9 vs. FY23 547 545 vs. FY23 497 80 481 65 Others -19.2% 9.7 10.9 Others +11.8% 467 Nissan 432 Brands -7.4% 7.6 International 6.1 PV Brand -20.0% FY23 FY24 FY23 FY24 FY23 FY24 Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD FY23
Slide 32: Consolidated Sales Volume
Consolidated Sales Volume FY24 H1 (Thousand units) FY24 Q2 -5.2% 1,335 1,265 vs. FY23 -6.3% vs. FY23 683 229 640 206 Japan -9.9% 113 108 Japan -4.8% 641 North 631 -1.5% 320 North America 302 -5.6% America 165 155 86 Europe -1.6% Europe -6.3% 84 82 67 Asia -18.4% 44 36 Asia -18.4% 218 206 Others -5.4
Slide 33: Operating Profit Variance Analysis Forex
Operating Profit Variance Analysis Forex FY23 H1 FY24 H1 OP Impact FY23 Q2 FY24 Q2 OP Impact Currency Currency Rate Rate (Billion Yen) Rate Rate (Billion Yen) USD 141.1 152.8 65.3 USD 144.6 149.7 18.7 CAD 105.1 111.8 11.9 MXN 8.5 7.9 12.4 GBP 177.6 195.6 7.4 GBP 183.1 194.4 3.9 AUD 93.3 101.4 6.6 AU
Slide 34: Volume/Mix, Selling Expenses/Pricing
Operating Profit Variance Analysis Sales Performance (Billion Yen) FY24 H1 FY24 Q2 Volume*1 Mix Incentives*2 Total Volume*1 Mix Incentives*2 Total Japan -3.8 +3.1 +1.4 +0.6 -0.7 +2.2 +0.3 +1.8 Volume/Mix US -43.5 -41.9 +20.3 -65.0 -25.7 -21.0 +6.1 -40.7 Europe -12.6 -8.4 +5.7 -15.3 -2.0 -6.1 +0.5 -7
Slide 35: Automotive Free Cash Flow
Automotive Free Cash Flow (Billion Yen) Q1 Q2 FY24 H1 Net Cash Inflow From P&L Items +75.4 -8.2 +67.2 AP/AR -98.5 +4.2 -94.2 Inventory -47.9 -42.6 -90.6 Working Capital -146.4 -38.4 -184.8 Tax/Other Operating Activities -121.1 +4.7 -116.5 Cash Flow From Operating Activities -192.1 -41.9 -234.0 CAPEX
Slide 36: Operating Profit Variance Analysis: Revised Outlook vs. FY23 Actual
Operating Profit Variance Analysis • FY2024 OUTLOOK FY24 Revised Outlook vs. FY23 Actual (Billion Yen) 568.7 +25.0 +5.0 -250.0 +40.0 -100.0 -138.7 150.0 FY23 Raw Sales Monozukuri FY24 Actual Forex Materials Performance Cost Inflation Others Revised Outlook Breakdown Volume/Mix -90.0 Manufacturing 0.
Slide 37: Inventory Status (Excluding China JV)
Inventory Status (Excluding China JV) Dealer inventory (except some minor countries) Consolidated Nissan inventory (except some minor countries) (Thousand units) 800 630 640 640 570 600 540 470 390 250 FY19 Q4 FY20 Q4 FY21 Q4 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3 FY23 Q4 FY24 Q1 FY24 Q2 37
Slide 38: Net Cash by Business Segment
Net Cash by Business Segment (Billion Yen) AS O F MAR C H 31, 2024 AS O F S E PTE M B E R 3 0, 2024 Automobile & Sales Automobile & Sales Total Total Eliminations Financing Eliminations Financing Borrowings From Third Parties 2,028.3 5,783.1 7,811.4 1,971.1 5,622.1 7,593.2 Internal Loan to Sales Fin
Slide 39: Forward-looking statements
This presentation contains forward-looking statements, based on judgments and estimates that have been made on the basis of currently available information. By nature, such statements are subject to uncertainty and risk. Therefore, you are advised that the final results might be significantly differ