Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — FY2018 Earnings Presentation
23 slides from Nissan Motor's earnings presentation, May 14, 2019
Slide 1: FY18 Results Outlook New Nissan Transformation
Nissan Motor Co., Ltd. May 14th, 2019 FY18 RESULTS OUTLOOK NEW NISSAN TRANSFORMATION www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 2
Slide 2: FY18 financial and global sales highlights
(TSE REPORT BASIS — CHINA JV EQUITY BASIS) (BILLION YEN) NET OPERATING NET *1 FREE NET CASH REVENUE PROFIT INCOME CASH FLOW (AUTO) (AUTO) 11,951.2 11,574.2 1,769.1 746.9 1,598.2 US TAX 574.8 REFORM 231.8 407.0 318.2 319.1 *2 515.1 191.1 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 *1: NET INCOM
Slide 3: Key markets and income statement
KEY MARKETS JAPAN CHINA RETAIL VOLUME RETAIL VOLUME *1 Market share Market share 5.6% +0.3 point 5.9% Market share Market share 11.3% +2.9% 1,564 11.2% +0.1 point NOTE e-POWER SERENA e-POWER 1,520 X-Trail Sylphy (THOUSAND UNITS) NOTE: Top-selling SERENA: Top-selling (THOUSAND UNITS) +2.1% 596 regist
Slide 4: Operating profit variance analysis and free cash flow
(TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) OPM: 4.8% 574.8 -65.4 -60.5 -84.7 OPM: -46.0 2.7% 318.2 SALES PERFORMANCE *1: -100.1 MONOZUKURI *2: +68.0 SPECIAL ITEMS *3 AND OTHERS : -13.9 FY17 FOREX REGULATION/ RAW PERFORMANCE FY18 PRODUCT MATERIAL/ YTD
Slide 5: Management pro forma basis results
(MANAGEMENT PRO FORMA BASIS *1) (BILLION YEN) NET OPERATING NET *2 FREE NET CASH REVENUE PROFIT INCOME CASH FLOW (AUTO) (AUTO) 13,315.0 OPM: 2,019.0 12,968.7 5.6% 1,918.9 742.4 746.9 OPM: US TAX 3.8% REFORM 493.2 231.8 482.7 *3 319.1 281.9 515.1 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 *1:
Slide 6: FY19 outlook
TIV *1 RETAIL VOLUME vs. FY18 92.85 M/S*2 6.0% vs. FY18 92.09 GLOBAL +0.8% M/S*2 6.0% 5.26 5.31 JAPAN +1.0% 5,516 5,540 GLOBAL +0.4% 596 610 JAPAN +2.3% 26.60 27.43 CHINA +3.1% 1,564 1,710 CHINA +9.3% 19.97 NORTH -2.9% 20.56 AMERICA (16.70) (U.S.) (-2.7%) (17.17) NORTH -5.9% 1,897 1,785 (1,444) AMER
Slide 7: Dividend per share and FY19 profit variance
(TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) OPM: 2.7% 318 -40 -110 OPM: 2.0% +112 230 -50 FY18 FOREX REGULATION/ RAW PERFORMANCE FY19 PRODUCT MATERIALS/ ACTUAL ENRICHMENT TARIFF OUTLOOK O.P. O.P. www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD.
Slide 8: New Nissan Transformation
FY18 RESULTS OUTLOOK NEW NISSAN TRANSFORMATION www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 15 GOVERNANCE TRANSFORMATION ORGANIZATION TRANSFORMATION BUSINESS TRANSFORMATION www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 16
Slide 9: Governance changes and management structure
FUNDAMENTAL CHANGES Commence three statutory-committee structure Nissan Motor Co., Ltd. Annual General Shareholders Meeting /board of directors meeting Nissan Motor Co., Ltd. Approval and official board of directors meeting appointment of new Governance directors Nomination of improvement candidates
Slide 10: Current issues and recovery plan key pillars
CURRENT ISSUES DETERIORATION IN US PROFIT NEGATIVELY AFFECTING GLOBAL PROFIT GLOBAL OPERATING PROFIT MARGIN BY MARKET (MANAGEMENT PRO FORMA BASIS) Past (FY16) Current (FY18) Global Operating Profit Margin 6.9% Global Operating Profit Margin 3.8% North Japan China Europe/ North Japan China Europe/ Am
Slide 11: US business recovery
1. US BUSINESS RECOVERY OaO*1 IMPROVEMENT THROUGH NEW PRODUCTS AND NISSAN INTELLIGENT MOBILITY Product Portfolio Age 6 *3 5 4 (YEARS) <3.5 3 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 OaO & Brand Improvement 8.5% 8.6% 8.7% 8.6% 8.4% 7.7% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 *1: O
Slide 12: Operational and investment efficiency improvement
2. OPERATIONAL AND INVESTMENT EFFICIENCY IMPROVEMENT PAST INVESTMENTS: RESTRUCTURE IMPROVE MANUFACTURING EFFICIENCY BY 10% OPTIMIZE CAPACITY BY 10% STARTED GLOBALLY 1ST WAVE IMPACT AND KEY PROJECTS Number of Projects Headcount Initial Cost Yearly Benefit 19 -4,800~ -47B JPY~ +30B JPY~ Regions An
Slide 13: Product enhancement and electrification
BUSINESS TRANSFORMATION 3. STEADY GROWTH THROUGH NEW PRODUCTS, ADVANCED TECHNOLOGY AND “NISSAN INTELLIGENT MOBILITY” Product Enhancement FY19 FY20 FY21 FY22 REFRESHALL CORE MODELS INTRODUCE 20+ NEW MODELS XMotion IMQ IMx Kuro www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserv
Slide 14: ProPILOT expansion and 6% OP margin target
3. STEADY GROWTH THROUGH NEW PRODUCTS, ADVANCED TECHNOLOGY AND “NISSAN INTELLIGENT MOBILITY” Expansion of ProPILOT models ~FY18 FY22 Cumulative sales Annual sales 350,000 units ~1 million units since 2016 20 models 20 markets Evolution of ProPILOT Driver assistance system designed for broader ProPIL
Slide 15: www.nissan-global.com www.nissan-global.com
www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 29 www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 30
Slide 16: Appendix: total funding amount
Appendix (AS OF MARCH 2019) TOTAL FUNDING AMOUNT: 10,198 BILLION YEN Group Finance (Inter-Company) Equity 8.8% 16.2% Commercial Paper 5.5% ABS Off B/S 2.2% S/T Loan 3.8% L/T Loan ABS On B/S 19.6% 23.3% Bonds 20.6% www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 32
Slide 17: Sales financing net credit loss ratio
(%) NFS NMAC NCF NRFM 100 90 80 70 60 50 34% 36% 31% 40 31% 30 4% 5% 48% 46% 20 32% 31% 32% 27% 36% 36% 10 0 FY17 FY18 FY17 FY18 FY17 FY18 FY17 FY18 YTD YTD YTD YTD YTD YTD YTD YTD LEASE NFS: NISSAN FINANCIAL SERVICES, SALES FINANCE COMPANY IN JAPAN RETAIL NMAC: NISSAN MOTOR ACCEPTANCE CORPORATION,
Slide 18: Operating profit and asset by finance company
OPERATING PROFIT & ASSET (NFS : billion yen, NMAC : million USD, NCF : million CAD, NRFM : million Peso) FY17 FY18 VARIANCE YTD YTD Asset: 1,239.6 Asset: 1,503.1 Asset: +263.5 NFS OP: 30.9 OP: 33.4 OP: +2.5 Asset: 65,384 Asset: 62,388 Asset: -2,996 NMAC OP: 899 OP: 988 OP: +89 Asset: 7,742 Asset: 8,
Slide 19: 4Q global sales and income statement
GLOBAL TIV *1 RETAIL VOLUME M/S*2 6.6% 1,661 M/S*2 6.4% vs. FY17 25.01 vs. FY17 206 1,492 GLOBAL -10.2% 1.54 23.35 GLOBAL -6.6% 186 JAPAN -9.6% 1.53 JAPAN -0.8% 500 8.28 7.25 CHINA -12.4% 468 CHINA -6.3% 4.88 NORTH -2.6% 4.75 AMERICA 531 (4.11) NORTH (4.01) (U.S.) (-2.5%) (416) 470 -11.5% AMERICA (3
Slide 20: 4Q operating profit variance analysis
(TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) SALES PERFORMANCE *1: OPM: -113.0 6.1% MONOZUKURI *2: +4.7 210.5 -5.9 -24.1 SPECIAL ITEMS *3 AND OTHERS : -13.7 -54.0 -162.3 OPM: 0.2% 4.5 FY17 FOREX REGULATION/ RAW PERFORMANCE FY18 4Q PRODUCT MATERIAL/ 4Q E
Slide 21: Free cash flow and net cash
(TSE REPORT BASIS — CHINA JV EQUITY BASIS) FREE CASH FLOW (AUTO BUSINESS) (BILLION YEN) +199.2 -111.9 376.5 -121.6 +162.1 +42.2 297.1 +127.1 NET CASH AP / AR INVENTORY TAX / CASH FLOW CAPEX* OTHERS FREE INFLOW OTHER FROM CASH FROM P&L OPERATING OPERATING FLOW ITEMS ACTIVITIES ACTIVITIES * CAPEX DOES
Slide 22: Inventory status and other markets
(EXCLUDING CHINA JV) INVENTORY STATUS (THOUSAND UNITS) (THOUSAND UNITS) 1,000 1,000 800 910 860 920 870 880 850 860 810 790 850 800 600 600 400 400 200 200 0 0 2015 2016 2018 Jun. Sep. Dec. Mar. 2019 Jun. Mar. Jun. Sep. Dec. Mar. DEALER INVENTORY, EXCEPT SOME MINOR COUNTRIES CONSOLIDATED NISSANEXCEP
Slide 23: 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