Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — FY2020 Earnings Presentation
22 slides from Nissan Motor's earnings presentation, May 11, 2021
Slide 1: Fiscal Year 2020 Financial Results
FISCAL YEAR 2020 FINANCIAL RESULTS Nissan Motor Co., Ltd. May 11th, 2021 AGENDA FY20 RESULTS FY21 OUTLOOK NISSAN NEXT UPDATE 2
Slide 2: FY20 Sales Performance and Recap of Nissan NEXT
FY20 SALES PERFORMANCE TIV *3 RETAIL VOLUME COVID-19 / Semiconductor vs. latest outlook +8% +2% shortage 4,125 impacts 4,015 4,052 GLOBAL +0.9% +63% 1,475 1,457 1,457 CHINA 0.0% 520 491 478 JAPAN -2.6% 1Q 2Q 3Q 4Q *3: Nissan estimation Nissan Sales NORTH 1,235 1,180 1,213 AMERICA +2.8% +18% (940) (9
Slide 3: Fixed Cost Reduction and Quality of Sales
RATIONALIZE Fixed cost figures are all FY20 vs. FY18 FIXED COST REDUCTION Manufacturing Product *2 • 3 2 Shift -7% *1 • -20% -5% • Barcelona close (Dec.21) (69～55 models) • Indonesia close *1: Excludes decrease in depreciation due to impairment in FY19 *2: R&D / Design costs Marketing & Sales G&A
Slide 4: Priority & Focus: Quality of Sales by Region
PRIORITY & FOCUS: QUALITY OF SALES US Franchise value on Dealer survey*2 Net revenue Value Products per unit Market share*1 7.1 4.9 6.1 6.7 5.8% +3.8% 1H 2H 1H 2H 5.5% *2: Source : NADA survey W2021 5.2% 5.2% Incentive All New Rogue segment share*1 per unit*1 7.4% -4.6% 5.2% 5.5% 5.9% 1Q 2Q 3Q 4Q Al
Slide 5: Sow Seeds for Future; FY2020 Key Financial Performance Trend
SOW SEEDS FOR FUTURE NEW PRODUCTS NEW TECHNOLOGIES LAUNCHES UNVEILS All New Kicks e-POWER ARIYA e-4ORCE All New Rogue Z PROTO New NAVARA / INFINITI QX55 / FRONTIER INFINITI QX60 ProPILOT with Monograph Navi-link All New Nissan Magnite All New Frontier / Pathfinder All New Note e-POWER ProPILOT Remot
Slide 6: Financial Performance (TSE Report Basis)
FINANCIAL PERFORMANCE (TSE REPORT BASIS) FY19 FY20 FY19 FY20 (BILLION YEN) VARIANCE YTD YTD 4Q 4Q NET REVENUE 9,878.9 7,862.6 -2,016.3 2,371.6 2,545.1 OPERATING PROFIT -40.5 -150.7 -110.2 -94.8 -19.0 OP MARGIN -0.4% -1.9% -4.0% -0.7% *1 NON-OPERATING 84.5 -70.5 -2.6 14.1 *1 ORDINARY PROFIT 44.0 -221
Slide 7: Operating Profit Variance Analysis; Liquidity Status
FINANCIAL PERFORMANCE (TSE REPORT BASIS) OPERATING PROFIT VARIANCE ANALYSIS VS OUTLOOK (BILLION YEN) -470.0 -205.0 -150.7 +20.0 +4.3 +30.0 (Ref.) FY20 FY20 SALES PERFORMANCE SALES FINANCE OTHER FY20 INITIAL OUTLOOK *2 ACTUAL OUTLOOK *1 O.P. O.P. O.P. *1: Initial outlook on July 28, 2020 *2: Outlook
Slide 8: FY21 Sales Outlook
AGENDA FY20 RESULTS FY21 OUTLOOK NISSAN NEXT UPDATE 15 FY21 SALES OUTLOOK RETAIL VOLUME vs. FY20 4,400 GLOBAL +8.6% 4,052 510 JAPAN +6.6% 478 1,530 CHINA +5.0% 1,457 NORTH +17.1% (THOUSAND UNITS) 1,213 1,420 AMERICA 391 380 EUROPE -2.8% 513 560 OTHERS +9.2% FY20 FY21 ACTUAL OUTLOOK 16
Slide 9: FY21 Outlook and Operating Profit Variance
FY21 OUTLOOK (TSE REPORT BASIS) (BILLION YEN) FY20 FY21 VARIANCE CHANGE ACTUAL OUTLOOK vs. FY20 (%) RETAIL VOLUME (K. units) 4,052 4,400 +348 +8.6% RETAIL VOLUME (K. units) 2,595 2,870 +275 +10.6% excluding China NET REVENUE 7,862.6 9,100.0 +1,237.4 +15.7% OPERATING PROFIT -150.7 0.0 +150.7 - OP MAR
Slide 10: Nissan NEXT Progress
AGENDA FY20 RESULTS FY21 OUTLOOK NISSAN NEXT UPDATE 19 NISSAN NEXT PROGRESS PRIORITIZE SOW SEEDS RATIONALIZE & FOCUS FOR FUTURE FOUNDATION STRATEGIC GOALS Ensure steady, profitable growth Capitalize core on competencies Enhance quality of business Ensure financial discipline Restore Nissan-ness 20
Slide 11: Product Acceptance and Launch Momentum
PRODUCT ACCEPTANCE Rogue Highest overall buyer satisfaction in Nissan North America’s history* * Since comparison data became available Qashqai Highest pre-orders in Nissan Europe’s history X-Trail Best upcoming new car award @ Shanghai Motor Show Note More than 32,000 sales to date in Japan 21 PROD
Slide 12: Ramping-Up Electrification
RAMPING-UP ELECTRIFICATION LAUNCHED FY21 ～ LEAF e-NV200 Sylphy EV Ariya EV Venucia T60EV Venucia e30 Venucia D60EV Kei EV e-POWER Qashqai New Note Serena Kicks Sylphy X-Trail 23 TOWARDS FUTURE GROWTH EVERY ALL-NEW VEHICLE OFFERING IN KEY MARKETS TO BE ELECTRIFIED BY EARLY 2030s 24
Slide 13: Technology Roadmap and Manufacturing Innovations
TECHNOLOGY ROADMAP BATTERY Continuous application of cost reduction technologies Pack Cost Liquid Solid ASSB 2020 2030 e-POWER Dedicated design to realize attractiveness enhancement and cost reduction Powertrain Cost 2nd Gen e-POWER ICE adopted to future regulation 3rd Gen e-POWER ICE 2020 2030
Slide 14: Manufacturing Innovations; Electrification and Beyond
MANUFACTURING INNOVATIONS RENEWABLE ENERGY EXPANSION: SUNDERLAND PLANT 27 ELECTRIFICATION AND BEYOND Blue Switch 4R Energy Community Partnerships 28
Slide 15: Appendix
NISSAN’S PURPOSE DRIVING INNOVATION TO ENRICH PEOPLE’S LIVES 29 Appendix 30
Slide 16: Sales Financing
(BILLION YEN) NET OPERATING TOTAL PENETRATION NET CREDIT REVENUE PROFIT ASSETS LOSS RATIO 1,163.3 267.9 9,852.8 1,020.0 210.5 8,879.3 47% 46% 0.93% 0.74% FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 YTD YTD YTD YTD YTD YTD YTD YTD YTD YTD FUNDING SOURCES AS OF MARCH 2021 • Strong profit and pen
Slide 17: Sales Financing: Net Credit Loss Ratio
SALES FINANCING NET CREDIT LOSS RATIO FY19 FY20 VARIANCE YTD YTD Lease: 0.03% Lease: 0.02% Lease: -0.01point NFS Retail: 0.08% Retail: 0.07% Retail: -0.01point Total: 0.07% Total: 0.06% Total: -0.01point Lease: 0.46% Lease: 0.44% Lease: -0.02point NMAC Retail: 1.61% Retail: 1.35% Retail: -0.26point
Slide 18: FY20 Sales Performance by Region
FY20 SALES PERFORMANCE TIV * RETAIL VOLUME 85.73 vs. FY19 76.98 GLOBAL -10.2% 4,930 24.31 vs. FY19 23.43 CHINA -3.6% 4,052 GLOBAL -17.8% 1,547 5.04 4.66 JAPAN -7.6% 1,457 CHINA -5.8% 19.67 534 (16.55) NORTH 17.48 -11.1% AMERICA (14.98) (-9.5%) (U.S.) 478 JAPAN -10.6% 1,620 19.12 (1,237) (THOUSAND UN
Slide 19: Financial Performance: Equity vs China JV Proportionate Basis
FINANCIAL PERFORMANCE FY20 YTD FY20 4Q (BILLION YEN) China JV China JV Equity basis proportionate Equity basis proportionate basis basis NET REVENUE 7,862.6 9,108.7 2,545.1 2,984.6 OPERATING PROFIT -150.7 -28.6 -19.0 11.8 OP MARGIN -1.9% -0.3% -0.7% 0.4% NET INCOME * -448.7 -448.7 -81.0 -81.0 FREE C
Slide 20: Financial Performance: 4Q Variance Analysis and Free Cash Flow
FINANCIAL PERFORMANCE (TSE REPORT BASIS) FY20 4Q (3 MONTHS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) FOREIGN EXCHANGE VOLUME SELLING IMPACT /MIX EXPENSES -15.2 +7.7 +73.4 USD -12.4 (108.9 ⇒ 106.1) JPN +0.9 VOL*1: +2.8 JPN -1.4 INCENTIVES: -1.7 MIX: -1.2 OTHERS: +0.3 BRL -3.2 (24.5 ⇒ 19.4) IN
Slide 21: Inventory Status; Net Cash by Business Segment
(EXCLUDING CHINA JV) INVENTORY STATUS (THOUSAND UNITS) 1,000 800 800 580 600 600 530 550 400 200 0 2020 2021 Mar. Jun. Sep. Dec. Mar. Dealer inventory, except some minor countries Consolidated Nissan inventory, except some minor countries 41 NET CASH BY BUSINESS SEGMENT (TSE REPORT BASIS) AS OF MARC
Slide 22: Forward-looking statements disclaimer
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