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April 25, 2005FY04 financial results / NISSAN Value-Up
FY04 financial results
NISSAN Value-Up
President and CEO
Carlos Ghosn
April 25, 2005
April 25, 2005FY04 financial results / NISSAN Value-Up
AgendaAgenda
FY04 sales performance
FY04 financial performance
FY05 outlook
NISSAN 180 progress
NISSAN Value-Up
April 25, 2005FY04 financial results / NISSAN Value-Up
Global retail sales volumeFY04
Tho
usan
d un
its
FY99 FY00 FY01 FY02 FY03 FY04
2,597
3,057
2,6332,530
2,771
3,388+10.8%
1990: Record sales 3,107
2,200
2,800
3,000
2,600
3,200
3,400
2,400
April 25, 2005FY04 financial results / NISSAN Value-Up
Tho
usan
d un
its
2,469
3,064
2,614
2,402
2,737
3,378+10.2%
Global production
2,200
2,800
3,000
2,600
3,200
3,400
2,400
FY99 FY00 FY01 FY02 FY03 FY04
FY04
Record production 3,085
April 25, 2005FY04 financial results / NISSAN Value-Up
JapanFY04 sales performance
983
848+1.4%
837
Fuga “RJC Car of the Year”
March Cube
Tiida Note
4 models in top 10monthly sales ranking
FY03 FY04
Tho
usan
d un
its
0
600
800
400
1,000
200
Industry TIV: 5.8 million (-1.2%)
Nissan share: 14.6% (+0.4 point)
April 25, 2005FY04 financial results / NISSAN Value-Up
United States
859
Tho
usan
d un
its
1,013+18.4%
0
600
800
400
1,000
200
FY03 FY04
FY04 sales performance
Industry TIV: 16.9 million (+0.4%)
Nissan share: 6.0% (+0.9 point)
Pathfinder
Frontier
TitanAltima
April 25, 2005FY04 financial results / NISSAN Value-Up
Tho
usan
d un
its
0
80
100
60
120
140
40
Infiniti sales performance
124
78 71
96
76
132+6.5%
FY99 FY00 FY01 FY02 FY03 FY04
April 25, 2005FY04 financial results / NISSAN Value-Up
Europe
544+0.3%
542
Tho
usan
d un
its
0
600
800
400
1,000
200
FY03 FY04
FY04 sales performance
X-TRAIL
Pickup
Industry TIV: 19.8 million (+4.2%)
Nissan share: 2.7% (-0.2 point)
April 25, 2005FY04 financial results / NISSAN Value-Up
983+19.5%
822
Tho
usan
d un
its
China sales: 194,000 (+92.7%)Including Dong Feng LCVs
General Overseas Markets**
*Including Mexico and Canada
Teana “Car of the Year 2005”
0
600
800
400
1,000
200
FY03 FY04
FY04 sales performance
April 25, 2005FY04 financial results / NISSAN Value-Up
AgendaAgenda
FY04 sales performance
FY04 financial performance
FY05 outlook
NISSAN 180 progress
NISSAN Value-Up
April 25, 2005FY04 financial results / NISSAN Value-Up
FY03 FY04(Billion yen)
FY04 financial performance
FOREXfor FY04
¥107.6/$1¥134.4/€1
Change
Consolidated net revenue 7,429.2 8,576.3 +15.4%
Consolidated operating profit 824.9 861.2 +4.4%
Operating margin 11.1% 10.0% -1.1points
April 25, 2005FY04 financial results / NISSAN Value-Up
Impact on operating profitFY04 financial performance
Bill
ion
yen
FY04O.P.
861.2
FY03O.P.
824.9
Forex-78
900
800
1,000
Scope of consolidation
+31
Volume/mix+284
Salesexpenses
-114
April 25, 2005FY04 financial results / NISSAN Value-Up
Incentives in the U.S.: Autodata
1999 2000 2001 2002 2003 2004 2005
$ p
er
uni
t
ToyotaToyotaHondaHonda
NISSAN
ChryslerChryslerFordFord
GMGM
0
1,000
2,000
3,000
4,000
5,000
April 25, 2005FY04 financial results / NISSAN Value-Up
Incentives in the U.S.: CNW
1999 2000 2001 2002 2003 2004 2005
FordFord
$ p
er
uni
t
0
1,000
2,000
3,000
4,000
5,000
ToyotaToyota
HondaHonda
ChryslerChrysler
GMGM
NISSAN
April 25, 2005FY04 financial results / NISSAN Value-Up
Comparison of incentives$
pe
r u
nit
0
1000
2000
3000
4000
5000
ToyotaToyotaHondaHonda
ChryslerChryslerGMGM
NISSANNISSAN
5000
CNW
1999 2000 2001 2002 2003 2004 20050
1000
2000
3000
4000
ToyotaToyotaHondaHonda
NISSANNISSAN
ChryslerChryslerFordFord
GMGMAutodata
FordFord
April 25, 2005FY04 financial results / NISSAN Value-Up
Impact on operating profitFY04 financial performance
Bill
ion
yen
Scope of consolidation
+31
FY04OP
861.2
FY03OP
824.9
Forex-78
Salesexpenses
-114
Manufacturing expenses
-15
Warrantyexpenses
-41
R&Dexpenses
-44
Volume/mix+284
900
800
1,000
Purchasingcost
reduction+131
Productenrichment
-92
G&Aand
others-25.7
April 25, 2005FY04 financial results / NISSAN Value-Up
Operating profit by region Billion yen
Eliminations: FY03 +5.4, FY04: -0.4
FY04FY03
66
GOM (Including Mexico)
84.8
U.S. (+CAN)
FY04FY03
379.7351.8
FY04FY03
400
200
049.2
EUROPE
56
FY04 financial performance
FY03
JAPAN
FY04
400
200
0
341.1352.5
April 25, 2005FY04 financial results / NISSAN Value-Up
FY03 FY04(Billion yen)
FY04 financial performance
FOREX for FY04 ¥107.6/$1, ¥134.4/€1
Change
Net non-operating expenses -15.2 -5.5 +9.7
Financial costs -15.7 -10.4 +5.3
Ordinary profit 809.7 855.7 +5.7%
Net extraordinary losses -73.2 -62.5 +10.7
Net income 503.7 512.3 +1.7%
Net income before tax 736.5 793.2 +7.7%
Taxes -219.0 -258.0 -39.0
Minority interests -13.8 -22.9 -9.1
April 25, 2005FY04 financial results / NISSAN Value-Up
Net cash flow (automotive)
-100
Billion yen
Net debt at beginning of FY03
Net cash at end of FY04
-13.6205.8
100
200
300
400
500
600
700
800
0
Cas
hD
ebt
-450.7
Investing activities
Free cashflow
-209.1
Financing activities
Operating activities+879.2
April 25, 2005FY04 financial results / NISSAN Value-Up
FY04 financial performanceNet automotive debt
2,100
1,349.7
952.7
13.6
431.7
-215.9-8.6
Under new accounting standards
FY98 FY00 FY01 FY02 FY03 FY04FY99
1,000
1,500
500
2,000
2,500
0
-453.5-205.8
Bill
ion
yen
April 25, 2005FY04 financial results / NISSAN Value-Up
COPFixed assets
+ Net working capital+ Cash on hand
ROIC(Auto)
=
1.3%
7.5%
19.8%21.3%
12.7%
20.1%*
0
10%
15%
5%
FY99 FY00 FY01 FY02 FY03 FY04
20%
25%
FY04 financial performanceReturn on invested capital (ROIC)
*Same scope of consolidation as P&L, excluding change of cash compared to FY03
April 25, 2005FY04 financial results / NISSAN Value-Up
Div
iden
d pe
r sh
are
/ ye
n
40
1914
24
34
29
7
0
8
Dividend policyFY04 financial performance
FY99 FY00 FY01 FY02 FY03 FY07*
20
10
40
0
30
FY04 FY05* FY06*
*Forecast
April 25, 2005FY04 financial results / NISSAN Value-Up
AgendaAgenda
FY04 sales performance
FY04 financial performance
FY05 outlook
NISSAN 180 progress
NISSAN Value-Up
April 25, 2005FY04 financial results / NISSAN Value-Up
0
1,500
2,000
1,000
FY01 FY02 FY03 FY04 FY05*
3,000
3,500
500
FY05 outlook
2,5972,771
3,0573,388
2,500
3,618+6.8%
TIV assumption: 61 million (+0.7%)Tho
usan
d un
its
*Forecast
April 25, 2005FY04 financial results / NISSAN Value-Up
FY05 new models
JapanSerena
OttiCompact wagonM-class sedan
Minicar
Europe
U.S./Canada
GOMQuest Infiniti M Lafesta Pathfinder Tiida hatchback InterstarNavara Tiida sedan Xterra
350Z RoadsterMurano
PathfinderNavara
Micra C+C
April 25, 2005FY04 financial results / NISSAN Value-Up
0
1,500
2,000
1,000
FY01 FY02 FY03 FY04 FY05*
3,000
3,500
500
FY05 outlook
2,5972,771
3,0573,388
2,500
3,618+6.8%
TIV assumption: 61 million (+0.7%)Tho
usan
d un
its
*Forecast
+3.3% U.S.1,047
+ 10% Japan933
+1.1% Europe550
+10.7% GOM (+Mexico, Canada)
1,088
April 25, 2005FY04 financial results / NISSAN Value-Up
Risks
Volatility in exchange rates
Higher interest rates
Higher commodity pricesHigher energy prices
Higher level of incentivesUncertainty on level ofgrowth in U.S. and Japanese markets
Opportunities
NISSAN Value-Up
FY05 outlook
April 25, 2005FY04 financial results / NISSAN Value-Up
FY04 FY05(FC)(Billion yen) Change
Consolidated net revenue 8,576.3 9,000 +4.9%Consolidated operating profit 861.2 870 +1.0%Ordinary profit 855.7 860 +0.5%Net income 512.3 517 +0.9%
+13.1%CAPEX 540477.5
ROIC 20.1% ----20% or above
FOREXfor FY05
¥105/$1¥130/€1
+13.0%R&D expenses 450398.1
FY05 outlook
April 25, 2005FY04 financial results / NISSAN Value-Up
AgendaAgenda
FY04 sales performance
FY04 financial performance
FY05 outlook
NISSAN 180 progress
NISSAN Value-Up
April 25, 2005FY04 financial results / NISSAN Value-Up
1
8
0
% operating margin
net automotive debt at end FY04
million additional units worldwide
NISSAN 180 commitments
April 25, 2005FY04 financial results / NISSAN Value-Up
0
2,000
1,000
4,000
3,000
Tho
usan
d un
its
Progress toward NISSAN 180 sales
Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep
849553
274
1,1201,403
1,809
3,597
April 25, 2005FY04 financial results / NISSAN Value-Up
Market coverage expansionNISSAN 180
Full-size SUV & TruckArmada Titan
CrossoversMurano FX35/45
350Z
MiniMoco Clipper
New CompactsNoteTiida
Teana
LCVs
Kubistar
Primastar Interstar
April 25, 2005FY04 financial results / NISSAN Value-Up
AgendaAgenda
FY04 sales performance
FY04 financial performance
FY05 outlook
NISSAN 180 progress
NISSAN Value-Up
April 25, 2005FY04 financial results / NISSAN Value-Up
Track toward great company
NRP NISSAN 180 NISSAN Value-Up
“Revive our company ”
“Complete revival on track for profitable growth”
“Value up with sustained performance”
Commitments
• Profitability in FY00
• Operating profit margin>4.5% in FY02
• 50% debt reduction by FY02
• +1M units by 9/05
• 8% operating profit margin
• 0 automotive debt
• 4.2M units in FY08
• Top level operating profit margin
• ROIC average 20%
April 25, 2005FY04 financial results / NISSAN Value-Up
Core elements of NISSAN 180Evolutionary plan
More revenue
More quality
and speed
Less cost
Maximized alliance
with Renault
April 25, 2005FY04 financial results / NISSAN Value-Up
NISSAN Value-Up commitments
Top level operating profit margin among global automakers in FY05-07
Profit commitment
To sustain performance
April 25, 2005FY04 financial results / NISSAN Value-Up
0
2
4
6
8
10
12
-3 -2 -1 0 1 2
Global Market Share Change from 1999 (%)
CO
P m
argi
n (%
)
GM
RENAULT
PSADCX
HONDA
TOYOTA
BMW HYUNDAI
FORD
VW◆◆ Nissan◆◆ Competitors in 20041999
2000
2001
20022003 2004 2007
NISSANValue-Up
NRP
N180
Top level operating profit marginNISSAN Value-Up commitments
April 25, 2005FY04 financial results / NISSAN Value-Up
NISSAN Value-Up commitments
Top level operating profit margin among global automakers in FY05-07
Profit commitment
4.2 million sales in FY08
Volume commitment
April 25, 2005FY04 financial results / NISSAN Value-Up
+812
+791
2,597
3,388
Global sales volume
0
2,000
1,000
FY01 FY04 FY08*
4,000
3,000
Tho
usan
d un
its
4,200 commitment
*Forecast
NISSAN Value-Up commitments
April 25, 2005FY04 financial results / NISSAN Value-Up
20% average ROIC over the plan
NISSAN Value-Up commitments
Top level operating profit margin among global automakers in FY05-07
Profit commitment
4.2 million sales in FY08
Volume commitment
Return on invested capital
April 25, 2005FY04 financial results / NISSAN Value-Up
Financial metrics comparison
Source: Moody’s Rating Methodology: Global Auto Industry (Sept . 2004) Analysis: NISSAN IR
*Retained cash flow: Cash flow from operation – change in working capital - dividend**Adjusted cash: Cash + marketable securities + VEBA (Voluntary employee’s beneficiary association)
Top profitability
Strong cash flow
Weak liquidity Average investment
ROA
ROEAss
et Tu
rnove
r
RCF*/To
tal D
ebt
RCF*/Net D
ebt
Fixed C
harge C
overa
ge
Adj. Cas
h**/ To
tal A
sset
Cash/D
ebt (
B/S)
Adj. Cas
h**/To
tal D
ebt
Mat
urity
R&D/Reve
nue
Depre
ciatio
n/CAPEX
EBITA M
argin
0
1
2
3
4
5
6
Average rating: A
BMW Honda PSA
DCX VW
Nissan
Toyota
FCF/Tota
l Deb
t
April 25, 2005FY04 financial results / NISSAN Value-Up
Financial metrics comparison
Source: Moody’s Rating Methodology: Global Auto Industry (Sept . 2004) Analysis: NISSAN IR
*Retained cash flow: Cash flow from operation – change in working capital - dividend**Adjusted cash: Cash + marketable securities + VEBA (Voluntary employee’s beneficiary association)
Top profitability
Strong cash flow
Weak liquidity Average investment
ROA
ROEAss
et Tu
rnove
r
RCF*/To
tal D
ebt
RCF*/Net D
ebt
Fixed C
harge C
overa
ge
Adj. Cas
h**/ To
tal A
sset
Cash/D
ebt (
B/S)
Adj. Cas
h**/To
tal D
ebt
Mat
urity
R&D/Reve
nue
Depre
ciatio
n/CAPEX
EBITA M
argin
0
1
2
3
4
5
6
Average rating: A
BMW Honda PSA
DCX VW
Nissan
Toyota
FCF/Tota
l Deb
t
April 25, 2005FY04 financial results / NISSAN Value-Up
Financial metrics comparison
Source: Moody’s Rating Methodology: Global Auto Industry (Sept . 2004) Analysis: NISSAN IR
*Retained cash flow: Cash flow from operation – change in working capital - dividend**Adjusted cash: Cash + marketable securities + VEBA (Voluntary employee’s beneficiary association)
Top profitability
Strong cash flow
Weak liquidity Average investment
ROA
ROEAss
et Tu
rnove
r
RCF*/To
tal D
ebt
RCF*/Net D
ebt
Fixed C
harge C
overa
ge
Adj. Cas
h**/ To
tal A
sset
Cash/D
ebt (
B/S)
Adj. Cas
h**/To
tal D
ebt
Mat
urity
R&D/Reve
nue
Depre
ciatio
n/CAPEX
EBITA M
argin
0
1
2
3
4
5
6
Average rating: A
BMW Honda PSA
DCX VW
Nissan
Toyota
FCF/Tota
l Deb
t
April 25, 2005FY04 financial results / NISSAN Value-Up
Financial metrics comparison
Source: Moody’s Rating Methodology: Global Auto Industry (Sept . 2004) Analysis: NISSAN IR
*Retained cash flow: Cash flow from operation – change in working capital - dividend**Adjusted cash: Cash + marketable securities + VEBA (Voluntary employee’s beneficiary association)
Top profitability
Strong cash flow
Weak liquidity Average investment
ROA
ROEAss
et Tu
rnove
r
RCF*/To
tal D
ebt
RCF*/Net D
ebt
Fixed C
harge C
overa
ge
Adj. Cas
h**/ To
tal A
sset
Cash/D
ebt (
B/S)
Adj. Cas
h**/To
tal D
ebt
Mat
urity
R&D/Reve
nue
Depre
ciatio
n/CAPEX
EBITA M
argin
0
1
2
3
4
5
6
Average rating: A
BMW Honda PSA
DCX VW
Nissan
Toyota
FCF/Tota
l Deb
t
April 25, 2005FY04 financial results / NISSAN Value-Up
From auto to financeInter-company loan
% o
f int
er-c
om
pany
loan
FY02 FY03 FY040
150
300
450
600
750
900
0%
5%
10%
15%
20%
25%
30%
35%
Bill
ion
yen
1,05035.7%
33.0%
23.1%
% of inter-company loan = inter-company loan/total funding excluding equity
April 25, 2005FY04 financial results / NISSAN Value-Up
0
10%
15%
5%
20%
25%
NISSAN 180 NISSAN Value-UpNRP
7.5%
19.8%21.3%
12.7%
ROIC average of 20%
FY00 FY02 FY03 FY04 FY05 FY06 FY07FY01FY99
Return on invested capital (auto)
COPFixed assets
+ Net working capital
ROIC(Auto)
=
20.1%*
*Same scope of consolidation as P&L, excluding change of cash compared to FY03
1.3%
NISSAN Value-Up commitments
April 25, 2005FY04 financial results / NISSAN Value-Up
Key assumptions
Total industry volume up to
63 million units in FY07
Foreign exchange rateFY05 105¥/$ 130¥/€
FY06, FY07 100¥/$ 120¥/€
April 25, 2005FY04 financial results / NISSAN Value-Up
New global product launches
31
44
28NISSAN Value-UpNISSAN 180
70
New Products
Start of Production
April 25, 2005FY04 financial results / NISSAN Value-Up
28 all-new modelsNISSAN Value-Up
10 new conquest models
18 replacement models
2828
April 25, 2005FY04 financial results / NISSAN Value-Up
Infiniti global tier-1 luxury brandBreakthrough
Taiwan
Middle East
Russia
Korea
China
North AmericaJapan*
*Japan launch after NISSAN Value-Up
April 25, 2005FY04 financial results / NISSAN Value-Up
Light Commercial Vehicles
AD VanATLAS
CIVILIAN
CARAVAN
CABSTAR
22 Nissan-badged models
Breakthrough
April 25, 2005FY04 financial results / NISSAN Value-Up
Thou
sand
uni
ts
0
450
FY00 FY03 FY07*
600
300
150
0
6%
4%
8%
2%
Light Commercial Vehicles
Co
nso
lidat
ed
ope
rati
ng m
arg
in
312
187 203 182234
FY01 FY02 FY04
434+40%
Breakthrough
3.3%3.6%
-0.5%1.4%
4.0%
8.0%
April 25, 2005FY04 financial results / NISSAN Value-Up
Leading Competitive Countries (LCCs)
Thailand
China
Egypt
Maximize opportunities, minimize costs
India
RomaniaHungary
Vietnam Mexico
Mercosur
Breakthrough
April 25, 2005FY04 financial results / NISSAN Value-Up
Geographic expansion
IndiaPakistan
Russia
Egypt Thailand
Gulf Countries China
Eastern Europe
Breakthrough
April 25, 2005FY04 financial results / NISSAN Value-Up
80% SU-LEVBy March 06
40% EV
=
Environmental technologiesOpportunities
1 million CVTs
200,000hybrids
HEV
ULEVULEV
SU-LEV
EV
=CVT
CO2 EmissionNOx & HC Emission
April 25, 2005FY04 financial results / NISSAN Value-Up
New safety approach
Safety Shield
10 new safety technologies in the next three years
Opportunities
April 25, 2005FY04 financial results / NISSAN Value-Up