Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — FY2008 Earnings Presentation
25 slides from Nissan Motor's earnings presentation, May 12, 2009
Slide 1: Fiscal year 2008 financial results
Fiscal year 2008 financial results May 12, 2009 Nissan Motor Co., Ltd. FY08 Full-year financial results Current situation in the automotive industry Triple threat Financial crisis Severe economic recession Volatility of foreign exchange rates 1 FY08 Full-year financial results
Slide 2: Financial highlights
Financial highlights FY08 February forecast vs. FY08 actual Global retail sales Net revenue Operating profit (K units) (billion yen) (billion yen) 3,411 8,437.0 3,382 8,300.0 -137.9 -180.0 FY08 FY08 FY08 FY08 FY08 FY08 Forecast* Actual Forecast* Actual Forecast* Actual 2 * Forecast as of Feb 9, 2009
Slide 3: FY08 global sales performance
FY08 global sales performance Full year 4th quarter FY08 TIV: 61.8 million units Market share: 5.5% Change vs. 3,770 FY07 1,056 All 3,411 regions -9.5% Change vs. All FY07 4Q 612 Japan -15.1% 778 regions -26.3% (thousand units) (thousand units) North 176 Japan -27.1% 1,133 -16.2% America 231 North A
Slide 4: FY08 major product accolades
FY08 major product accolades Europe Japan North America NISSAN GT-R: NISSAN GT-R: NISSAN GT-R: Performance Car of the Year Most Advanced Technology Award World Performance Car of the Year in UK Car of the Year Japan Motor Trend Car of the Year Automobile of the Year Navara: X-TRAIL 20GT Best Pickup
Slide 5: FY08 sales performance: North America
FY08 sales performance: North America US retail volume TIV decreased 25.1%* to 11.9 million units (thousand units) in US -19.1%* US market share improved 0.5% to 7.2% 1,059 856 Canada: Sales up 5.5% to 81.2 k units, market share improved 0.6% to 5.2% Mexico: Sales down 10.0% to 194.1 k units
Slide 6: FY08 sales performance: General Overseas Markets
FY08 sales performance: General Overseas Markets Retail volume Incl. China (thousand units) 545 (thousand units) +19.1% +7.1% 458 1,136 Nissan 1,061 297 379 +Infiniti 161 166 DFL FY07 FY08 FY07 FY08 Teana Four new models (QASHQAI, Livina C- Gear, Teana and X-TRAIL) successfully launched in FY08
Slide 7: FY08 financial performance
FY08 financial performance FY07 FY08 Variance (billion yen) Net revenue 10,824.2 8,437.0 -2,387.2 Operating profit 790.8 -137.9 -928.7 Non-operating -24.4 -34.8 Ordinary profit 766.4 -172.7 -939.1 Extraordinary 1.6 -46.1 Profit before tax 768.0 -218.8 -986.8 Net income 482.3 -233.7 -716.0 FX rate 11
Slide 8: Response to revenue decline
FY08 performance FY08 recovery plan progress FY09 outlook FY09 recovery plan Direction for the future 14 FY08 Full-year financial results Response to revenue decline Adapted quickly to preserve cash Realized in 4th th quarter +20% Production volume : +10% -16% FY08 average (Variance FY08 vs. FY07) 0
Slide 9: Right-sizing operations
Right-sizing operations Tighter inventory management Production volume Inventory volume 800 700 720 3,856 -26% 600 630 -20% 3,084 500 (thousand units) 470 400 300 200 100 0 FY08 FY08 Mar Sep Oct Nov Dec Jan Feb Mar Initial Actual 2008 2009 plan Dealer inventory, except some minor countries 16 Consol
Slide 10: FY09 global sales forecast
FY08 performance FY08 recovery plan progress FY09 outlook FY09 recovery plan Direction for the future 18 FY08 Full-year financial results FY09 global sales forecast 4,000 3,770 3,569 3,483 3,500 3,411 (thousand units) 3,389 3,057 3,080 3,000 5.7% 2,633 2,597 2,771 5.6% 5.6% 5.5% 2,530 5.4% 5.4% 5.3%
Slide 11: FY09 outlook: retail sales objective and production plan
FY09 outlook Retail sales objective and production plan Retail volume Production volume Change vs. Change vs. FY08 3,411 FY08 3,084 All All 2,950 regions -4.3% 3,080 regions -9.7% 612 Japan +0.0% 953 Japan -9.3% (thousand units) (thousand units) North 1,000 Amererica -11.7% (750) (Incl. US) (-12.4%)
Slide 12: FY09 new technologies
FY09 new technologies 17 new technologies to be launched ( 12 to be deployed in next Fuga / InfinitiM ) New driving-interface SCP Fuga / Infiniti M and ECO Pedal Side Collision Prevention technology 17 Lightweight and rigid new body strucure Forest Air 11 10 5 5 4 3 2 2 ＦＹ 01 02 03 04 05 06 07 08 09
Slide 13: Progress on Nissan Green Program 2010
Progress on Nissan Green Program 2010 Range of environmentally friendly technologies FCV mass-market Electric vehicle Original hybrid Nissan ECO series Clean diesel CVT 1M 1M units FY07 FY08 FY09 FY10 FY12 24 FY08 Full-year financial results FY09 risks and opportunities Risks Opportunities Foreign
Slide 14: FY09 outlook
FY09 outlook (billion yen) (A) (B) (B)-(A) * FY08 FY09 Variance Net revenue 8,437.0 6,950.0 -1,487.0 Operating profit -137.9 -100.0 +37.9 Ordinary profit -172.7 -200.0 -27.3 Net income -233.7 -170.0 +63.7 R&D 455.5 400.0 sales ratio 5.4% 5.8% CAPEX 383.6 350.0 sales ratio 4.5% 5.0% FX rate 100.7 JPY
Slide 15: What is the recovery plan?
FY08 performance FY08 recovery plan progress FY09 outlook FY09 recovery plan Direction for the future 28 FY08 Full-year financial results What is the recovery plan? An agile plan with two main objectives Positive free cash flow Positive COP 29 FY08 Full-year financial results
Slide 16: Tighter inventory management
Tighter inventory management Keep inventory amount flat through tight control of new vehicles, used cars, parts and materials Global sales Inventory amount 1,000 1,500 1,000 500 (thousand units) (billion yen) 0 0 FY08 FY09 FY09 Mar Mar 2nd Half 1st Half 2nd Half 2009 2010 30 FY08 Full-year financial
Slide 17: FY09 monozukuri cost reduction
FY09 monozukuri cost reduction Key to recovery plan success Target of 5% cost reduction Actions Double the volume per part on average and work with suppliers to reduce parts complexity Accelerate depth and scope of LCC sourcing Pull ahead new-model cost-reduction activities Minimize cash-out
Slide 18: Monozukuri cost reduction: deeper localization
Monozukuri cost reduction Accelerate deeper localization while maintaining quality standards Tier1 90% Tier N same level 100 China Mexico localization ratio (%) Tier 1 Thailand Tier 1 Tier 1 Tier N NAFTA Tier N 50 Tier N Tier N Mex FY10-11 FY08 A-platform 34 FY08 Full-year financial results Monozuku
Slide 19: FY09 opportunity for overseas production
FY09 opportunity for overseas production Allocations to benefit from favorable exchange Examples Mexico UK Frontier for Mexico, Latin America and the Caribbean ドイツ for South Africa, QASHQAI+2 中国 Singapore and Magreb 36 FY08 Full-year financial results Domestic plants as a base for global business Ma
Slide 20: Reduction of fixed marketing and sales expenses
Reduction of fixed marketing and sales expenses Maximize global marketing assets Give priority to highly visible models in key markets -14% fixed marketing expenses -22% FY07 FY08 FY09 38 FY08 Full-year financial results FY08 performance FY08 recovery plan progress FY09 outlook FY09 recovery plan Di
Slide 21: When will the crisis be over?
When will the crisis be over? Two clear indicators When global market TIV stops declining When net income returns and remains positive 40 FY08 Full-year financial results Progress on Nissan Green Program 2010 Range of environmentally friendly technologies FCV mass-market Electric vehicle Origina
Slide 22: Zero-emission leadership: moving forward with EV
Zero-emission leadership Moving forward with EV Begin vehicle production in Oppama in fall of 2010, starting from 50k/year and ramping up Exploring other production sites around the globe Battery to be produced at AESC at Zama Motor to be produced in Yokohama Inverter to be initially produ
Slide 23: Global entry car launch
Zero-emission leadership Moving forward with EV Unveil our new EV for the first time in early August 44 FY08 Full-year financial results Global entry car launch Global rollout of affordable models in 150+ countries, starting in 2010 Dedicated new platform Status vehicles: modern & roomy Sourced and
Slide 24: Focus on BRICs and Middle East
Focus on BRICs and Middle East To be well positioned when economic growth resumes and demand rises Russia 2009: St. Petersburg plant opening 米国 China Middle East 2009: NT400 Cabstar launch FY09: Patrol launch 2010: Zhengzhou plant opening India 2010: Chennai plant Brazil opening 2009: Introduction o
Slide 25: Alliance hard synergies
Alliance hard synergies 180 billion yen joint contribution in cash flow for FY09 48 FY08 Full-year financial results 49 FY08 Full-year financial results