FY2001 Financial Results Preview - Nissan...NISSAN Revival Plan Review & NISSAN 180 Presentation FY2001 Financial Results Preview NISSAN Revival Plan Commitments • FY00 Return to

NISSAN Revival Plan Review &

NISSAN 180 Presentation

NISSAN Revival Plan Review &

NISSAN 180 Presentation

FY2001 Financial Results Preview

NISSAN Revival Plan CommitmentsNISSAN Revival Plan Commitments

• FY00 Return to profitability

• FY02 Operating margin > 4.5%

of sales

• FY02 Reduce net consolidated debt to less than 700 billion yen

• FY00 Return to profitability

• FY02 Operating margin > 4.5%

of sales

• FY02 Reduce net consolidated debt to less than 700 billion yen

-684.4

FY consolidated net income

-200-150-100

-500

50100150200250300

(Bill

ion

Yen

)

48.8101.3

-56.0-86.9

-166.1

-88.4

77.0

-14 -27.7

331.1

90 91 92 93 94 95 96 97 98 99 '00

350

NRP ReviewNRP Review

Consolidated operating marginConsolidated operating margin

91 92 93 94 95 96 97 98 9990

-1%

0%

1%

2%

3%

4%

5%

4.5% FY02 NRP commitment4.5% FY02 NRP commitment

7%

8%

9%

6%

2.90% 2.70%

0.60%

-0.80% -1.00%

0.70%

3.00%

1.30%

1.70%

1.40%

4.75%

7.90%

00 01

NRP ReviewNRP Review

2,2572,100

1,349

953

2,1522,398

2,7372,8662,8552,604

91 92 93 94 95 96 97 98 99 '00 010

500

1,000

1,500

2,000

2,500

Consolidated net automotive debt

<700 bn yen FY02 NRP commitment<700 bn yen FY02 NRP commitment 435435

NRP ReviewNRP Review

• Introduction NRP review

• Fiscal year 2001 business performance

• Fiscal year 2001 financial preview

• NISSAN 180

• Outlook for fiscal year 2002

• Introduction NRP review

• Fiscal year 2001 business performance

• Fiscal year 2001 financial preview

• NISSAN 180

• Outlook for fiscal year 2002

AgendaAgenda

NRP TargetNRP Target

- 8%

-14.5%

(pur

chas

ing

cos

t re

duc

tions

bas

elin

e as

of

FY 1

99

9)

-20%

70

80

90

100

FY00FY00 FY01FY01 FY02FY02

• Parts suppliers down 40%

• Service suppliers down 60%

• Parts suppliers down 40%

• Service suppliers down 60%

Purchasing cost reductions

- 11%- 11%

- 20%- 20%

NRP ReviewNRP Review

Manufacturing efficiencies achieved

Oppama

Tochigi

Kyushu

Shonan 52%52%52%

64%64%64%

28%28%28%

45%45%45%

Pre NRPPre NRPPre NRPAverage

0% 20% 40% 60% 100%80%

First half fiscal year 2001First half fiscal year 2001First half fiscal year 2001

78%78%78%

75%75%75%

74%74%74%

75%75%75%

NRP ReviewNRP Review

Average

51%Average

75%

OppamaMurayamaTochigi

Kyushu

Shonan

KyotoAichi

March/

Cube

Sunn

y/Alm

eraPre

sea

Blueb

ird

Primera

/G20 Crew

Cefiro

/I30/M

axim

a

Skylin

e/Lau

rel

Cedri

c Glor

ia w

Cedri

c Glor

ia

Cedri

c sed

an

Cima/Q

45

Presid

ent

Silvia

Fairla

dy

Wingroa

d

Aven

irPr

airie

Stage

a

R'nes

sa/P

resag

eSe

rena

Terra

no/C

aravan

/Elgr

and Sa

fari

Civilia

nDa

tsun

Japan manufacturing system: 1999

7 plants - 24 platforms

NRP ReviewNRP Review

Oppama

Tochigi

Kyushu

Shonan

B

Carav

anSa

fari

FR-L

Crew

Cefiro

/I30/M

axim

a

Skylin

e GTR SM

Cedri

c Glor

ia

Cedri

c sed

anDa

tsun

Aven

irPr

airie

Presa

geSe

rena

Terra

no/E

lgran

d

Japan manufacturing system: 2001

4 plants - 15 platforms

NRP ReviewNRP Review

Reduced 355 outlets Reduced 18 domestic consolidated dealers

Reduced 355 outlets Reduced 18 domestic consolidated dealers

As of March. 2002

100

200

0

98 8080

Dealers

NRP ReviewNRP Review

3,0052,650

Points of salePoints of sale

1000

2000

3000

0

-355

Thou

sand

of

empl

oyee

s, c

onso

lidat

ed h

eadc

ount

Headcount reduced below target

120,000

130,000

140,000

150,000

3/99 3/00 3/01 3/02

NRP Target: 127,000NRP Target: 127,000

NRP ReviewNRP Review

141,500

148,000

133,800

125,100

Asset sale proceeds　　 Billion YenAsset sale proceeds　　 Billion Yen

Fiscal year 2001 192Fiscal year 2001 192

Real estate 73Real estate 73

Marketable securities　 119Marketable securities　 119

Cumulative asset sales 530(FY 2000 & 2001)Cumulative asset sales 530(FY 2000 & 2001)

NRP ReviewNRP Review

• Introduction NRP review

• Fiscal year 2001 business performance

• Fiscal year 2001 financial performance

• NISSAN 180

• Outlook for fiscal year 2002

• Introduction NRP review

• Fiscal year 2001 business performance

• Fiscal year 2001 financial performance

• NISSAN 180

• Outlook for fiscal year 2002

AgendaAgenda

Fiscal Year 2001Fiscal Year 2001

800

700

600

500

400

300

200

100

0

(K units)

JAPAN USA EUROPE GOM

733 714 744 719

535484

571620

FY2000 FY2001

17.9% share

2.5% share

4.2% share

Retail Sales by Region

Global Sales VolumeGlobal Sales Volume

FY01 retail sales:

2,597,000

FY01 retail sales:

2,597,000

FY00 retail sales:

2,633,000

FY00 retail sales:

2,633,000

FY99 retail sales: 2,530,000

FY99 retail sales: 2,530,000

Down 1.4%Up 4.0%

U.S. Sales % change from previous year

-35

-25

-15

% c

hang

e in

sal

es

-5

5

15

25

35

45

55

Fiscal Year 2001Fiscal Year 2001

NISSANUp 9.4%NISSANUp 9.4%

NISSANDown 14%NISSANDown 14%

First Half FY 01First Half FY 01 Second Half FY 01Second Half FY 01

2002 North American Car of the Year Award2002 North American Car of the Year Award

2002 Canadian “Car of the Year” & “Best New Design”2002 Canadian “Car of the Year” & “Best New Design”

Fiscal Year 2001Fiscal Year 2001

Fiscal Year 2001Fiscal Year 2001

Incentives in USAIncentives in USA

(Source: CNW Report)

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

200120001999199819971996

FORD

NISSAN

CHRYSLER

TOYOTA

HONDA

($/unit)

2002

• Transaction price equal to Camry higher than current Accord

• New ALTIMA buyer younger than competition

• Stimulating sales of other products

• Transaction price equal to Camry higher than current Accord

• New ALTIMA buyer younger than competition

• Stimulating sales of other products

New ALTIMA ReviewNew ALTIMA Review

• Introduction NRP review

• Fiscal year 2001 business performance

• Fiscal year 2001 financial performance

• NISSAN 180

• Outlook for fiscal year 2002

• Introduction NRP review

• Fiscal year 2001 business performance

• Fiscal year 2001 financial performance

• NISSAN 180

• Outlook for fiscal year 2002

AgendaAgenda

Fiscal Year 2001Fiscal Year 2001

Summary ReviewSummary ReviewFY00 FY01 ChangeFY00 FY01 Change

Net Sales　billion yen 　 6,089.6 6,200 +1.8%Net Sales　billion yen 　 6,089.6 6,200 +1.8%

Unit Sales k/unit 2,633 2,597 -1.4%(consolidated retail)　　Unit Sales k/unit 2,633 2,597 -1.4%(consolidated retail)　　

Figures before FY94 are adjusted by current rate method

176

37

-48 -58

41

197

84110

83

290

490

-100-50

050

100150200250300350400450500

(bill

ion

yen)

Fiscal Year 2001Fiscal Year 2001

91 92 93 94 95 96 97 98 99 '00 01

Up 68%

FY consolidated operating profitFY consolidated operating profit

Consolidated operating marginConsolidated operating margin

2.90% 2.70%

0.60%

-0.80% -1.00%

0.70%

3.00%

1.30%

1.70%

1.40%

91 92 93 94 95 96 97 98 9990

-1%

0%

1%

2%

3%

4%

5%

4.5% FY02 NRP commitment4.5% FY02 NRP commitment

7%

8%

9%

6%

4.75%

7.90%

00 01

Fiscal Year 2001Fiscal Year 2001

Fiscal Year 2001Fiscal Year 2001

Impacts on operating profit

FY00O.P.

290.3

FY00O.P.

290.3

Purchasingcost

reductions+245

Purchasingcost

reductions+245 R&D

-28R&D-28

Productenrichment

-62

Productenrichment

-62 Volume/mix-71

Volume/mix-71

Others-9

Others-9

FY 01O.P.

490.0

FY 01O.P.

490.0

0

100

200

300

400

500

600

Sales costIncrease

-11

Sales costIncrease

-11

Accountingchanges

-11

Accountingchanges

-11

Foreignexchange

+147

Foreignexchange

+147

Fiscal Year 2001Fiscal Year 2001

Operating profit by regionUSA (+CAN)

113.4113.4159159

FY01FY00

200

100

0

EUROPE

-27.3-27.3 33

FY01FY00

200

100

0

GOM

42.242.2 5858

FY01FY00

200

100

0

JAPAN

174.3174.3

290290

FY01FY00

200

100

0

Eliminations: FY00: 12.3 FY01: 20

Fiscal Year 2001Fiscal Year 2001

Summary ReviewSummary ReviewBillion Yen FY00 FY01 ChangeBillion Yen FY00 FY01 Change

Return on sales 5.4% 6.0% +0.6 ptsReturn on sales 5.4% 6.0% +0.6 pts

Net Income　billion yen 　 331.1 372 +12.4%Net Income　billion yen 　 331.1 372 +12.4%

Operating Margin　　 4.75% 7.9% +3.1pts.Operating Margin　　 4.75% 7.9% +3.1pts.

Operating Profit billion yen 　　290.3 490 +68%Operating Profit billion yen 　　290.3 490 +68%

Net Sales　billion yen 　 6,089.6 6,200 +1.8%Net Sales　billion yen 　 6,089.6 6,200 +1.8%

Unit Sales k/unit 2,633 2,597 -1.4%(consolidated retail)　　Unit Sales k/unit 2,633 2,597 -1.4%(consolidated retail)　　

Fiscal Year 2001Fiscal Year 2001

Return & RewardsReturn & Rewards

0

5000

10000

15000

20000

25000

0

200

400

600

800

1000

1200

FY 00 FY 01

Nikkei-45%

NISSAN+136%

NISSAN+136%

FY00 FY01 % ChangeDividend 7 yen 8 yen +14%

FY00 FY01 % ChangeDividend 7 yen 8 yen +14%

April 3, 2000 May 8, 2002

Summary ReviewSummary ReviewBillion Yen FY00 FY01 ChangeBillion Yen FY00 FY01 Change

Net Auto Debt　　 953.0 435 -54.3%Net Auto Debt　　 953.0 435 -54.3%

Net Income　　 331.1 372 +12.4%Net Income　　 331.1 372 +12.4%

Operating Margin　　 4.75% 7.9% +3.1pts.Operating Margin　　 4.75% 7.9% +3.1pts.

Operating Profit　　 290.3 490 +68%Operating Profit　　 290.3 490 +68%

Net Sales　　 6,089.6 6,200 +1.8%Net Sales　　 6,089.6 6,200 +1.8%

Unit Sales 2,633 2,597 -1.4%(consolidated retail)　　Unit Sales 2,633 2,597 -1.4%(consolidated retail)　　

Fiscal Year 2001Fiscal Year 2001

2,2572,100

1,349

953

435

2,1522,398

2,7372,8662,8552,604

91 92 93 94 95 96 97 98 99 '00 010

500

1,000

1,500

2,000

2,500

Consolidated net automotive debt

Down 54.3%, 518 bn yen

Fiscal Year 2001Fiscal Year 2001

• Introduction NRP review

• Fiscal year 2001 business performance

• Fiscal year 2001 financial performance

• NISSAN 180

• Outlook for fiscal year 2002

• Introduction NRP review

• Fiscal year 2001 business performance

• Fiscal year 2001 financial performance

• NISSAN 180

• Outlook for fiscal year 2002

AgendaAgenda

NISSAN 180NISSAN 180

million additional units worldwide FY04 10/04 to 9/05

% operating margin with constant accounting standards

net automotive debt at end FY04 with constant accounting standards

118800

NISSAN 180NISSAN 180

80

90

100

110

120

130

140

FY 2002 FY 2003-4

125/$

110/€115/$

100/$ €

Euro €

FY99 FY00 FY01

US $

Beyond FY 04100/$ €

Foreign currency assumptions

NISSAN 180NISSAN 180

More Quality& Speed

More Quality& Speed

LessCostLessCost

Maximize Alliance

with Renault

Maximize Alliance

with Renault

NISSAN 180

MoreRevenue

MoreRevenue

0

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

2001 By the end of FY04(10/04 to 9/05)

2.59 million

3.6 million

千台

thou

sand

. uni

tsNISSAN 180NISSAN 180

Japan+300K

U.S.+300K

Europe+100K

G.O.M.G.O.M.+300K**+300K**

Global TargetMarket Share

6.1%

Global TargetMarket Share

6.1%

22.5% 22.5%

6.2% 6.2%

3.1% 3.1%

** incl. Mexico and Canada

NISSAN 180NISSAN 180

19931991 1995-97 1999 2001

Fairlady Z

Cima

180SX

Infiniti Q45

Fairlady Z

Primera sedCube

Skyline GT-R

None

Models in the top 10 most innovative cars in Japan

Cima Primera wgn

FY00 FY01 FY02 FY03 FY04

4 5 12

NISSAN 180NISSAN 180

28 all new products

28 all new products

FY00 FY01 FY02 FY03 FY04

4 5

NISSAN 180NISSAN 180

12ï16ð

U.S retail focus– Marketing & advertising skills– Improve distribution network– Improve CSI & SSI scores

U.S retail focus– Marketing & advertising skills– Improve distribution network– Improve CSI & SSI scores

Japan retail focus– Convenient retailer strategy– New conquest strategy– Effective outlet management

Japan retail focus– Convenient retailer strategy– New conquest strategy– Effective outlet management

Europe retail focus– Build the brand– Implement hub strategy

with Renault– Improve CSI & SSI scores

Europe retail focus– Build the brand– Implement hub strategy

with Renault– Improve CSI & SSI scores

NISSAN 180NISSAN 180

NISSAN 180NISSAN 180(p

urch

asin

g c

ost

red

uctio

ns b

asel

ine

as o

f FY

19

99

)

70

80

90

100

Less costs

FY00FY00 FY01FY01 FY02FY02

- 11%- 11%

- 20%- 20%

-20%

-15%-15%

FY03FY03 FY04FY04

• Higher volumes•• Higher volumesHigher volumes

50%50%From 3,3,3From 3,3,3

• Nissan 3,3,3• Nissan 3,3,3

9 New Products

28 New Products

• 28 products –designed to cost

• 28 products –designed to cost

Purchasing cost

reductions 15%

Purchasing costPurchasing cost

reductions 15%reductions 15%

NISSAN 180NISSAN 180

Less costs

• Purchasing• Manufacturing & logistics

– Reduce 12% in three years

• Distribution

Reduce global distribution costs by 3% points to 24%Reduce global distribution costs by 3% points to 24%

NISSAN 180NISSAN 180

PurchasingPurchasing

OthersOthers

Distribution27%

Distribution27%

Distribution24%

Distribution24%

As % of net sales

NISSAN 180NISSAN 180

Less Costs

• Purchasing• Manufacturing & logistics

– Reduce 12% in three years• Distribution• R&D expenses remain 4%-4.5% of

revenues• Eliminate finance costs

0102030405060708090

100

'99 '00 '01 '04

bill

ion

yen

Eliminate financial costs

NISSAN 180NISSAN 180

'98

60

3120

"0" debt"0" costs

"0" debt"0" costs

90

NISSAN 180NISSAN 180

NISSAN “QUALITY 3,3,3”

Product Perceived Overall Opinion Attractiveness Attractiveness

Owner’s Satisfaction JDP APEAL

Sales & Service Sales SSI

Service CSI

Product Quality Initial JDP IQS

Reliability JDP VDI, SOFRES

Category Indicator

[ Cost of Investment

[ Quality of Management

[ Product/Part complexity/diversity management

[ Finance Cost

[ G&A

[ Marketing & Sales

[ R&D

[ Manufacturing & Logistics

[ Purchasing -- Nissan 3-3-3

[ Fleet Business

[ Intellectual Assets Management

[ Supply Chain Management

[ Associated Business

New CFT Line-upNew CFT Line-upOriginal CFT’s

NISSAN 180NISSAN 180

[ Organization

[ Finance Costs[ Product Phasing out

[ G&A

[ Sales & Marketing

[ R&D

[ Manufacturing & Logistics

[ Purchasing

[ Business development

61.5% Other

13.5% Nissan

NISSAN RENAULT Alliance NISSAN RENAULT Alliance

NISSAN 180NISSAN 180

15% NISSAN

44.4% Renault Additional 1.5%Additional 1.5%

Main MarketsMain Markets

10 platforms by 20108 engine families7 transmission families

10 platforms by 20108 engine families7 transmission families

Platform and power-train commonizationPlatform and power-train commonization

B-platform (March/Micra/Cube)C- platformB-platform (March/Micra/Cube)C- platform

Exchange of best practicesExchange of best practices

NISSAN 180NISSAN 180

• Introduction NRP review

• Fiscal year 2001 business performance

• Fiscal year 2001 financial performance

• NISSAN 180

• Outlook for fiscal year 2002

• Introduction NRP review

• Fiscal year 2001 business performance

• Fiscal year 2001 financial performance

• NISSAN 180

• Outlook for fiscal year 2002

AgendaAgenda

Global sales volume up 7.5%

FY01 retail sales:

2,597,000

FY01 retail sales:

2,597,000FY02 forecast:

2,792,000

FY02 forecast:

2,792,000

FY 2002FY 2002

GOM

JapanEurope U.S.

Supported by the biggest product year in NISSAN’s history

Z-Car

Coupe

X-Trail Z-Car C-sedan Q45 sedan

Primera

M45

Z-CarMuranoFX45

MaximaG35 coupe

LCVLCV

MocoElgrand

CubeSedan

Platina (Mex)

FY 2002FY 2002

FY02 sales forecast by region

FY 2002FY 2002

800700600500400300200100

0

(K units)

JAPAN

757714

Ø TIV down 1.1% (excl. mini)Ø Domestic sales up 6.1% (excl. mini)

Ø Share up 1.3 pts to 19.2% (excl. mini)Ø Moco, Elgrand, Z, Cube, New sedan , Coupe

Ø TIV down 1.1% (excl. mini)Ø Domestic sales up 6.1% (excl. mini)

Ø Share up 1.3 pts to 19.2% (excl. mini)Ø Moco, Elgrand, Z, Cube, New sedan , Coupe

JAPANJAPAN

FY2002FY2001

FY02 sales forecast by region

FY 2002FY 2002

800700600500400300200100

0

(K units)

JAPAN USA

757714

USAUSA Ø U.S. TIV down 8.2%Ø U.S. sales up 7.3%Ø U.S. share up 0.7 pts to 4.9%

Ø Nissan: Z, Murano, MaximaØ Infiniti: M45, G35 coupe, FX45

Ø U.S. TIV down 8.2%Ø U.S. sales up 7.3%Ø U.S. share up 0.7 pts to 4.9%

Ø Nissan: Z, Murano, MaximaØ Infiniti: M45, G35 coupe, FX45

771719

FY2002FY2001

FY02 sales forecast by region

FY 2002FY 2002

800700600500400300200100

0

(K units)

JAPAN USA EUROPE

757714 771719

501484

EUROPEEUROPE Ø TIV down 4.2%Ø Sales up 1.8% Ø Market share up 0.2 pts to 2.7%Ø Primera , 2 LCVs from Renault

ØØ TIV down 4.2%TIV down 4.2%ØØ Sales up 1.8% Sales up 1.8% ØØ Market share up 0.2 pts to 2.7%Market share up 0.2 pts to 2.7%ØØ Primera , 2 LCVs from RenaultPrimera , 2 LCVs from Renault

FY2002FY2001

FY02 sales forecast by region

FY 2002FY 2002

800700600500400300200100

0

(K units)

JAPAN USA EUROPE GOM

FY2002FY2001757714 771719

501484

655620

GOMGOM

Risks

• Strengthening of yen to US$

• Harsher competitive environment

Risks

• Strengthening of yen to US$

• Harsher competitive environment

Opportunities

• More favorable Total Industry Volumes

• NISSAN 180

Opportunities

• More favorable Total Industry Volumes

• NISSAN 180

FY 2002FY 2002

FY01 FY02-FYen/Dollar 125 125Yen/Euro 109 110

FY 2001

6,5006,200Sales

250435Net auto debt

350300Capital Exp.

488415Ordinary profit

380372Net income

553490Operating profit

FY 2002-F(billion yen)

FY 2002FY 2002