Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — FY2002 Earnings Presentation
27 slides from Nissan Motor's earnings presentation, May 21, 2003
Slide 1: Nissan Motor Company FY02 Annual Results
NISSAN MOTOR COMPANY FY02 ANNUAL RESULTS May 21 2003 Mr. Thierry Moulonguet Executive Vice President & Chief Financial Officer of Nissan
Slide 2: Agenda
Agenda Accounting Changes Final Figures: Update From Pre -Announce As Of April 23rd Pre-Announce Non -Operating & Extraordinary Items Non-Operating TAX Cash Flow Pension Captive Finance Companies ROIC Employees Stock Options Plan Dividend Policy Funding Strategy Conclusion
Slide 3: Lease Accounting: From Off B/S to On B/S
Lease Accounting: From Off B/S to On B/S Balance Sheet Impact (Billion Yen) Items FY2002 FY2003E Canton SPE Full Consolidation +116 +116 Financial Lease Footnote +103 Vendor Tooling Footnote +46 Income Statement Impact FY2003E (Billion Yen) Items OP Non-OP Net Canton SPE Full Consolidation +3 -3 0 F
Slide 4: Final Figures: Consolidated Basis
Final Figures : Consolidated Basis 23-Apr FY2001 FY2002 Change (in 000 units) Preview Sales Volume 2,460 2,636 7.2% (in Billion Yen) Revenue 6,196.2 6,828.6 10.2% 6,850.0 COGS 4,547.3 4,872.3 7.1% SG&A 1,160.5 1,219.1 5.0% Operating Profit 489.2 737.2 50.7% 737.0 Operating Margin (%) 7.9% 10.8% 10.8
Slide 5: Final Figures: Business Segment (Income Statement)
Final Figures: Business Segment (Income Statement) (Billion Yen) Automotive Sales Financing FY2001 FY2002 Change FY2001 FY2002 Change Net Sales 5,829.6 6,432.7 10.3% 366.7 395.9 8.0% COGS 4,295.4 4,617.4 7.5% 252.0 255.0 1.2% Gross Profit 1,535.0 1,815.4 18.3% 114.7 140.9 22.9% Operating Margin 7.7%
Slide 6: Final Figures: Business Segment (Balance Sheet)
Final Figures: Business Segment (Balance Sheet) (Billion Yen) Automotive Sales Financing FY2001 FY2002 Change FY2001 FY2002 Change Total Assets 4,352.4 4,245.3 -2.5% 2,862.6 3,103.9 8.4% Total Liabilities 2,896.1 2,628.7 -9.2% 2,620.8 2,823.7 7.7% Total Shareholder Equity 1,379.0 1,528.1 10.8% 241.8
Slide 7: Non-Operating & Extraordinary Items
Non-Operating & Extraordinary Items Main Non-Operating Items (Billion Yen) Items FY2001 FY2002 Net financial expenses -20.4 -16.5 Amortization of pension obligation -23.9 -23.9 Equity in profits of unconsolidated 0.9 11.4 companies Main Extraordinary Items (Billion Yen) Items FY2001 FY2002 Return of
Slide 8: Automotive: FY 2002 Net Cash Improvement
Automotive: FY 2002 Net Cash Improvement (Billion Yen) 600 Operating 500 Activities 400 300 431.7 200 797.3 Investing Asset Financing 100 Others Activities Sales Activities * 0 87.8 -8.6 Net automotive 134.6 134.6 138.4 debt at beginning Net automotive of FY 02 441.0 debt at the end of FY 02 * Divid
Slide 9: Automotive: Factors in Debt Elimination
Automotive: Factors in Debt Elimination (Mar 1999 Mar 2003) 2,100 521 (Billion Yen) 906 Real estate: 322 Marketable securities: 361 (Billion yen) Industrial assets: 223 682 -8.6 Net auto Capital Asset Net Net auto debt as of Injection Sales contribution debt as of 03/99 from/to from 03/03 Renault op
Slide 10: Effective tax rates return to normal
Effective tax rates return to normal FY 2001 FY 2002 FY 2003E -4% 29% 35-40% 1st half 2nd half 22% 36% Factors Factors Nissan Tax Effect restructuring Normal Normal in Europe
Slide 11: Changes in Pension
Changes in Pension Negative Return on Asset Return Substitution Portion to the government Discount Rate: From 3% to 2.3% * ROA: From 4% to 3% * Pension Impact (Billion Yen) Discount Substitution Mar-02 Mar-03 Rate Change Return + Others PBO 1,428 1,135 -395 102 Plan Assets 675 360 -242 -73 (
Slide 12: Pension Expenses (P/L Impact)
Pension Expenses (P/L Impact) Extraordinary Loss (Billion Yen) FY 2002: Return Pension Substitution EPF: -31 Operating & Non-Operating Cost (Billion Yen) FY 2002 FY 2003E Change Operating Cost 74 84 -10 Non-Operating Cost 24 16 +8 Total 98 100 -2 Cash Contribution (Billion Yen) FY 2002 FY 2003E 76 8
Slide 13: Sales Financing: Operating Profit & Asset (NFS)
Sales Financing: Operating Profit & Asset (NFS) (Billion Yen) (Asset) NFS (OP) 1,200 12 10.0 1,000 OP 10 8.2 7.9 800 8 600 6 Asset 400 4 747 906 1,003 200 2 0 0 FY2000 FY2001 FY2002 - OP Annual Compound Growth: 10.4% - Asset Annual Compound Growth: 15.9% - FY 2002 Pretax Return on Asset: 1.0% NFS: N
Slide 14: Sales Financing: Operating Profit & Asset (NMAC)
Sales Financing: Operating Profit & Asset (NMAC) (Million $) (Asset) NMAC (OP) 20,000 400 OP 381 15,000 300 230 220 10,000 200 Asset 11,800 16,400 19,600 5,000 100 0 0 FY2000 FY2001 FY2002 - OP Annual Compound Growth: 28.7% - Asset Annual Compound Growth: 28.9% - FY 2002 Pretax Return on Asset: 1.9%
Slide 15: Sales Financing: Operating Profit & Asset (NCFI)
Sales Financing: Operating Profit & Asset (NCFI) (Million CAD) (Asset) NCFI (OP) 2,000 45 40 41 1,500 OP 35 33 30 25 1,000 20 11 Asset 15 500 10 1,221 1,186 1,730 5 0 0 FY 2000 FY 2001 FY 2002 - OP Annual Compound Growth: 90.6% - Asset Annual Compound Growth: 19.0% - FY 2002 Pretax Return on Asset:
Slide 16: Sales Financing: Penetration (NFS)
Sales Financing: Penetration (NFS) NFS 60% 50% 40% 30% 20% 10% 0% FY2000 FY2001 FY2002 Annual Compound Growth: 4.5% NFS: Nissan Financial Service, sales finance company in Japan
Slide 17: Sales Financing: Penetration (NMAC)
Sales Financing: Penetration (NMAC) NMAC 60% 50% Lease 40% 30% 20% Retail 10% 0% FY2000 FY2001 FY2002 Annual Compound Growth: 10.4% NMAC: Nissan Motor Acceptance Corporation, sales finance company in USA
Slide 18: Sales Financing: Penetration (NCFI)
Sales Financing: Penetration (NCFI) NCFI 60% 50% 40% 30% 20% Lease 10% Retail 0% FY2000 FY2001 FY2002 Annual Compound Growth: 14.3% NCFI: Nissan Canada Finance Inc. , sales finance company in Canada
Slide 19: Sales Financing: Net Loss Ratio
Sales Financing: Net Loss Ratio NFS NMAC NCFI Lease: 0.53% Lease: 0.09% FY 2002 0.42% Retail: 1.06% Retail: 0.04% NFS: Nissan Financial Service, sales finance company in Japan NMAC: Nissan Motor Acceptance Corporation, sales finance company in USA NCFI: Nissan Canada Finance Inc. , sales finance com
Slide 20: Sales Financing: Funding Sources
Sales Financing: Funding Sources Equity 8.6% Total funding amount 13.6% 32.6% 3,272 billion Yen ABS Off B/S Inter-Company (= Total assets – Other liabilities + off balance sources) 0.1% S/T Loan 4.6% L/T Loan ABS On B/S 0.2% Bonds 40.3% NFS: Nissan Financial Service NMAC: Nissan Motor Acceptance Cor
Slide 21: Automotive: ROIC (Return On Invested Capital)
Automotive: ROIC (Return On Invested Capital) ROIC Consolidated automotive operating profit (Auto) = (Fixed auto assets + Auto Net working capital + Auto Cash on hand ) Auto OP Fixed Assets AR Inventory AP Deferred Cash (Billion Yen) Asset 677.3 2,789.0 494.0 526.1 646.3 2.1 261.7 20.0% 19.8% NISSAN
Slide 22: Employee stock options status
Employee “stock options” status Issue Date Granted Number Exercise Price Status Mar 1999 10 Million shares 554 JPY Vested Mar 2000 35 Million shares 429 JPY Vested Mar 2001 59 Million shares 764 JPY Vested Mar 2002 60 Million shares 880 JPY Unvested Mar 2003 12.4 Million shares 932 JPY Unvested Niss
Slide 23: Dividend policy
Dividend policy Nissan 180 dividend/share forecast FY 2001 FY 2002 FY 2003E FY 2004E ¥8/share ¥14/share ¥19/share ¥24/share Nissan 180 payout ratio forecast FY 2001 FY 2002 FY 2003E 9.1% 12.7% 17.1%
Slide 24: Improvement in Ratings
Improvement in Ratings A+ A A- R&I BBB+ BBB S&P BBB- Moody’s BB+ Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- Jun- Jul- Aug- Sep- Oct- Nov- Dec- Jan- Feb- Mar- Apr- May- 01 01 01 01 01 02 02 02 02 02 02 02 02 02 02 02 02 03 03 03 03 03
Slide 25: Funding Strategy
Funding Strategy 1. Continue To Fund Core Businesses CAPEX: 420 Billion Yen (5-6% of Net Sales) R&D : 360 Billion Yen (4.5-5.0% of Net Sales) Captive Finance Companies 2. Ensure Good Access To Liquidity Cash Commitment Line 3. Diversify Funding Sources
Slide 26: Conclusion
Conclusion Opening of Canton Plant on May 27th (Billion Yen) Start-up Cost FY00 FY01 FY02 FY03E 1USD=121.98JPY Phase 1 0.2 1.7 7.6 6.3 Phase 2 0.0 0.0 0.3 5.3 Total 0.2 1.7 7.9 11.6 Fixed Cost Fixed Cost 0.0 0.0 0.0 18.3 Investment Phase 1 0.0 32.1 73.0 8.4 Phase 2 0.0 0.0 6.8 46.9 Total 0.0 32.1 79
Slide 27: END
NISSAN HOTOR COMPANY