Fiscal Year 2003 Small Meeting - Nissan · BMW INFINITIINFINITI LEXUS Sales Performance : Infiniti Division 0 500 1,000 1,500 2,000 2,500 3,000 3,500 ... exchange fluctuation Rising

1

May 18th, 2004NISSAN MOTOR CO., LTD.

Akira Sato, VP

Fiscal Year 2003Fiscal Year 2003

Small MeetingSmall Meeting

2

AgendaAgenda

1.1. Review of FY2003Review of FY2003

2.2. Outlook for FY2004Outlook for FY2004

3.3. Sales Finance BusinessSales Finance Business

4.4. Post Nissan 180Post Nissan 180

3

FY 2003FY 2003

Global Retail SalesGlobal Retail Sales

2,000

2,200

2,400

2,800

(th

ou

sand

uni

ts)

3,000

2,600

FY99 FY00 FY01 FY02 FY03

3,057+10.4%3,057+10.4%

2,6332,6332,5302,530

2,5972,597

2,7712,771

First time in 13 years to pass 3 million unit salesFirst time in 13 years to pass 3 million unit salesFirst time in 13 years to pass 3 million unit sales

4Source: CNW Marketing Research

FY96FY96 FY97FY97 FY98FY98 FY99FY99 FY00FY00 FY01FY01 FY02FY02 FY03FY0300

500500

1,0001,000

1,5001,500

2,0002,000

2,5002,500

3,0003,000

3,5003,500

4,0004,000($ ($ per unit)per unit)

ChryslerChrysler

GMGM

ToyotaToyota

HondaHonda

FordFord

NISSANNISSAN

Sales PerformanceSales Performance –– Nissan DivisionNissan Division

Incentive per unitIncentive per unit in U.S.in U.S.

5

FY99FY99 FY00FY00 FY01FY01 FY02FY02 FY03FY03

MERCEDESMERCEDES

BMWBMW

INFINITIINFINITI

LEXUSLEXUS

Sales Performance : Infiniti DivisionSales Performance : Infiniti Division

00

500500

1,0001,000

1,5001,500

2,0002,000

2,5002,500

3,0003,000

3,5003,500

4,0004,000

Source: CNW Marketing Research

($ ($ per unit)per unit) Incentive per unit in U.S.Incentive per unit in U.S.

6

Consolidated net revenueConsolidated net revenue

((bill

ion

yen)

billi

on y

en)

FY99FY99 FY00FY00 FY01FY01 FY02FY02 FY03FY035,0005,000

5,5005,500

7,5007,500

6,0006,000

6,5006,500

7,0007,000

7,429.2+8.8%

7,429.2+8.8%

6,089.66,089.65,977.15,977.1

6,196.26,196.2

6,828.66,828.6

FY 2003FY 2003

7

Consolidated operating profit / marginConsolidated operating profit / margin((b

illio

n ye

n)bi

llion

yen

)

825825

290290

8282

489489

737737

00

200200

400400

800800

600600

1,0001,000

00

1122

99

1111

44

88

77

66

55

33

1010

7.9%7.9%

4.75%4.75%

10.8%10.8%

11.1%11.1%

1.4%1.4%


FY 2003FY 2003

8

Purchasing cost+183

Sales Cost-72

Enrichment & regulations-83

Manufacturing -12

R&D-54

Scope ofConsolidation

-4

Forex-48

Volume/mix

+185

Leaseaccounting

+20

Impact on operating profitImpact on operating profit

500500

600600

700700

900900

800800

1,0001,000

(( bill

ion

yen)

billi

on y

en)

FY03FY03O.P.O.P.825825

FY02FY02O.P.O.P.

737.2737.2

G&A

and

Others

-27.3

9

((billion yen)billion yen)Operating profit by regionOperating profit by regionJAPANJAPAN

390.6

FY03FY03FY02FY02

500500

250250

00

352.5

242.0

500500

250250

00

U.S.U.S. (+CAN)(+CAN)

FY03 FY03 FY02FY02

351.8

500500

250250

0021.9

EUROPEEUROPE

FY03 FY03 FY02 FY02

49.2

500500

250250

00

GOMGOM**

FY03FY03FY02FY02

66.077.6

Eliminations: FY02: +5.1, FY03: +5.4 *Including Mexico

FY 2003FY 2003

10

FY02 FY03 Change

Ordinary profit

Net income

710.1

495.2

(billion yen)

Consolidated net revenue

Consolidated operating profit

6,828.6

737.2

7,429

825

+8.8%

+11.9%

810

504

+14.0%

+1.7%

FY 2003FY 2003

Net non-operating expense -27.1 -15.2 -11.9

Net extraordinary loss -15.5 -73.2 -57.7

Income before tax 694.6 736.5 +41.9

11

Net ProfitNet Profit

(( bill

ion

yen)

billi

on y

en)

503.7503.7495.2495.2

FY99FY99 FY00FY00 FY01FY01 FY02FY02 FY03FY03--800800

300300

500500

00

100100

200200

400400

-684.4-684.4

331.1331.1 372.3372.3

FY 2003FY 2003

12

Net Cash changeNet Cash change

00

100100

1,042.4

--428.0428.0

Net Net automotiveautomotive

debt at debt at beginningbeginningOf FY03Of FY03

Operating Operating

activitiesactivities

TreasuryTreasury

stockstock

108.0108.0

(billion yen)

Investing Investing

activitiesactivities

FX rate FX rate

ImpactImpact

--100100

--400400

--200200

--300300

--126.9126.9

200200

300300

--500500

--800800

--600600

--700700

160.3160.3

--92.392.3--74.674.6

--659659

DividendDividend

paidpaid

Other Other FinancialFinancialActivitiesActivities

Lease Lease LiabilityLiability

Total: Total: 268.3268.3

Net Net AutomotiveAutomotiveDebt at theDebt at the

End of End of FY03FY03

13.613.6

13*Canton plant investment included from FY01

33

44

55

66

%

% o

f net

rev

enue

of n

et r

even

ueInvestment in our futureInvestment in our future


CAPEX*CAPEX*

R&DR&D3.9%3.9%

3.8%3.8%4.2%4.2%

4.4%4.4%4.8%4.8%

4.1%4.1%

3.4%3.4%

5.3%5.3%5.5%5.5%

+ 49 billion yen

+ 54 billion yen

5.8%5.8%

14

0%0%

5%5%

10%10%

15%15%

20%20%

Return on invested capital (auto) Return on invested capital (auto) 25%25%

1.3%1.3%

12.7%12.7%

7.5%7.5%

19.8%19.8%

21.3%21.3%Target: 20%Target: 20%


15

Working capital reductionWorking capital reduction

0%0%

4%4%

8%8%

6%6%

10%10%

2%2%

7.6%

9.0%

5.8%

3.6%3.6%

7.6%


Account receivable +　Inventory – Account PayableAutomotive net revenue

Account receivable +　Inventory – Account PayableAutomotive net revenue

16

Dividend policyDividend policy

00

55

1010

2020

1515

FY00FY00 FY01FY01 FY02FY02 FY04FY04

8877

2525

FY03FY03

1919

1414

2424

(Div

iden

d p

er s

hare

/ y

en)

17

FY 2004FY 2004

Global retail salesGlobal retail sales

2,2002,200

2,8002,800

(( tho

usan

d un

it)th

ousa

nd u

nit)

3,0003,000

2,6002,600


2,5972,597

3,0573,057

FY04FY04

3,2003,200

3,3803,380

Forecast

3,4003,400

2,4002,400

2,6332,6332,5302,530

2,7712,771

TIV assumption：58.8 million (+1.7%)

Nissan sales: 3.38 million (+10.5%)

Nissan share: 5.8% (+0.5 point)

TIV assumption：58.8 million (+1.7%)

Nissan sales: 3.38 million (+10.5%)

Nissan share: 5.8% (+0.5 point)

18

FY 2004: 9 new modelsFY 2004: 9 new models

U.S./(Canada*)JapanEuropeMurano

Compact HB#1Luxury sedan

Compact sedanCompact MPV

Compact HB#2

X-TRAIL*Pathfinder

Frontier King CabFrontier Crew Cab

M45

MinivanAltima

Compact HBFull-size SUV

Crossover SUVLuxury coupeCompact MPVInfiniti full-size SUV

GOM/Mexico

19

Progress toward NISSAN 180 salesProgress toward NISSAN 180 sales

2,4002,400

2,8002,800(( tho

usan

d un

its)

thou

sand

uni

ts)

3,0003,000

2,6002,600

FY01FY01 FY02FY02 FY03FY03 FY04FY04

3,2003,200

ForecastForecastOct 04Oct 04--Sep 05Sep 05

3,4003,400

3,6003,600

2,5972,597

3,057+460

3,057+460

3,380+783

3,380+783

1 million units1 million units

3,6003,600

ForecastForecast

2,771+174

2,771+174

20

RisksAdverse foreign

exchange fluctuation

Rising commodity

prices

Rising interest rates

OpportunitiesNissan 180

FY 2004FY 2004

21

Change

Ordinary profit

Net Income



74,2928,249

+10.1%

+4.3%

8,0975,037

+4.5%

+1.3%

81,7608,600

8,4605,100

Capital expenditure 4,273 +12.4%4,800ROIC 21.3%

Foreign exchange assumption ¥113/$1¥131/€1

¥105/$1¥125/€1

20% or above

Operating margin 11.1% -0.6 point10.5%

(billion yen)

Financial forecastFinancial forecast

FY 2004FY 2004

FY 03 FY 04

22

FY03FY03

74,29274,2928,2498,249

8,0978,0975,0375,037

81,76081,7608,6008,600

8,4608,4605,1005,100

FY04FY04

4,2734,273 4,8004,80021.3%21.3%

¥113/$1¥131/€1¥113/$1¥131/€1

¥105/$1¥125/€1¥105/$1¥125/€1

20% or above20% or above

11.1%11.1% 10.5%10.5%

(billion yen)(billion yen)

Financial forecastFinancial forecast

FY 2004FY 2004

At FY03 FXrate

At FY03 FXrate

9,9009,90011.6%11.6%



Operating margin

Ordinary Profit

Net Income

Capital expenditure

ROIC

Foreign exchange assumption

23

0

200

400

600

800

1000

1200

FY01 FY02 FY030

2

4

6

8

10

12NFS

906.4 1,003.9 1,118.6

7.9

11.010.2

Sales Finance BusinessOperating Profit and Total Assets (NFS)

(billion yen）(Total Assets*) (Operating Profit）

Assets

Operating Profit

NFS: Nissan Financial Service, Sales Finance Business in Japan

ABS On-balance Basis.

24

19%22%

26%

4%3%

4%

0%

10%

20%

30%

40%

50%

FY01 FY02 FY03

NFS

NFS: NFS: Nissan Financial Service, Sales Finance Business in Japan

Sales Finance Business: Penetration (NFS)

Retail

Lease

25

0

5,000

10,000

15,000

20,000

25,000

30,000

FY01 FY02 FY030

50

100

150

200

250

300

350

400

450

500

16,791 19,654 24,721

220

427381

NMAC

Sales Finance Business: Operating Profit and Total Assets (NMAC)

Assets

Operating Profit

(million $）

(Total Assets*) (Operating Profit）

NMAC: Nissan Motor Acceptance Corporation, Sales Finance Business in U.S.


26

40% 39% 37%

12% 15%14%

0%

10%

20%

30%

40%

50%

60%

FY01 FY02 FY03

NMAC

Sales Finance Business: Penetration (NMAC)

Retail

Lease

NMAC: Nissan Motor Acceptance Corporation, Sales Finance Business in U.S.

27

0

500

1,000

1,500

2,000

2,500

FY01 FY02 FY030

10

20

30

40

50

60

70

80

1,186 1,730 2,139

33

67

41

NCFI

Sales Finance BusinessOperating Profit and Total Assets (NCFI)

(million CAD)

(Total Assets*) (Operating Profit）

Assets

Operating Profit

NCFI: Nissan Canada Finance Inc, Sales Finance Business in Canada.


28

9%19% 16%

18%

30%41%

0%

10%

20%

30%

40%

50%

60%

FY01 FY02 FY03

NCFI

Retail

Lease

NCFI: Nissan Canada Finance Inc, Sales Finance Business in Canada.

Sales Finance Business: Penetration (NCFI)

29

Sales Finance Business :

NFS NMAC NCFILease：0.09％ Lease：0.53％ Lease：0.12％Retail：0.36％ Retail：1.13％ Retail：0.12％Lease：0.10％ Lease：0.53％ Lease：0.12％Retail：0.39％ Retail：1.13％ Retail：0.12％Lease：0.15％ Lease：0.53％ Lease：0.09％Retail：0.42％ Retail：1.06％ Retail：0.04％

FY04 Budget

FY03 Actual

FY02 Actual

Residual RiskＮＭＡＣ：ＡＬＧ Comparison（FY03 Budget）（FY03 Result）

-4.7％ -2.6％

Loss Ratio

30

30.3%

5.9%

41.6%

11.7%

0.9%

1.3%

8.2%

Total Amount Financed

3.625 billion yen

(= Total Assets –Other Liabilities

+ Off Balance Assets Finance)

NRFM, NRWM : Sales Finance Business in Mexico.

Group Loan

Short-term Borrowing

Long-term Borrowing

BondABS On-balanceBasis

ABS Off-banace Basis

Shareholder’sEquity

NFS: Nissan Financial Service, Sales Finance Business in JapanNMAC: Nissan Motor Acceptance Corporation, Sales Finance Business in U.S.NCFI: Nissan Canada Finance Inc, Sales Finance Business in Canada.

Retail Finance Business: Financing

31

Sales Finance Business :Interest Rate Assumption ( 3 year interest rate)

0.10

0.20

0.30

0.40

0.50

0.60

0.70

0.80

May-

03

Jun-

03

Jul-0

3

Aug-

03

Sep-

03

Oct-0

3

Nov-

03

Dec-

03

Jan-

04

Feb-

04

Mar-0

4

Apr-0

4

May-

04

Jun-

04

Jul-0

4

Aug-

04

Sep-

04

Oct-0

4

Nov-

04

Dec-

04

1.00

1.50

2.00

2.50

3.00

3.50

4.00

May-

03

Jun-

03

Jul-0

3

Aug-

03

Sep-

03

Oct-

03

Nov-

03

Dec-

03

Jan-

04

Feb-

04

Mar-

04

Apr-

04

May-

04

Jun-

04

Jul-0

4

Aug-

04

Sep-

04

Oct-

04

Nov-

04

Dec-

04

JPY

USD

0.5％

3.0％

32

Nissan Value-Up Plan LOGOFY2005 to FY2007

Nissan Value-Up Plan LOGOFY2005 to FY2007

33

NISSAN ValueNISSAN Value--Up commitmentsUp commitments

Return on investmentReturn on investment

GrowthGrowth

Sustained profitabilitySustained profitability

34

00

1,0001,000

2,0002,000

(( tho

usan

d un

its)

thou

sand

uni

ts) 3,0003,000

2001 2004 Forecast

2,5972,597

4,0004,000

Global sales volumeGlobal sales volume

3,3803,380

2007 Forecast

4,200 Commitment4,200 Commitment+820+820

+783+783

35

4%4%

5%5%

6%6%

8%8%

7%7%

FY00FY00 FY02FY02 FY03FY03 FY04FY04 FY05FY05 FY06FY06 FY07FY07FY01FY01

5.0%5.0%

5.3%5.3%

7.0%7.0%

NISSAN 180NISSAN 180 NISSAN Value-UpNISSAN Value-UpNRPNRP

FY99FY99

4.7%4.7% 4.7%4.7%4.6%4.6%

Global market shareGlobal market share

36

FY02FY02 FY03FY03 FY04FY04

12 10 9

FY05 – FY07FY05 – FY07

2828

Global product launchesGlobal product launches

37


Global sales of 4.2 million unitsGlobal sales of 4.2 million units

Top operating profit margin for global automakerTop operating profit margin for global automaker


GrowthGrowth

38

Nissan Value-UpNissan Value-Up

00

6%6%

8%8%

12%12%

10%10%

4.75%4.75%

7.9%7.9%

10.8%10.8%

4%4%

2%2%

Industry-leading(double digit)

Industry-leading(double digit)

1.4%1.4%

Consolidated operating profit marginConsolidated operating profit margin

Top global automaker(double-digit)

11.1%11.1%

FY00FY00 FY02FY02 FY03FY03 FY04FY04 FY05FY05 FY06FY06 FY07FY07FY01FY01FY99FY99


39

Return on invested capital ≧ 20％Return on invested capital ≧ 20％

Return on investmentReturn on investment


Global sales of 4.2 million unitsGlobal sales of 4.2 million units

Top operating profit margin for globalautomaker

Top operating profit margin for globalautomaker

GrowthGrowth


40

0

10%

15%

25%

20%

7.5%7.5%

19.8%19.8%

5%

21.3%21.3%

12.7%12.7%

1.3%1.3%

Return on invested capital Return on invested capital (auto)(auto)

At or above 20%

FY00FY00 FY02FY02 FY03FY03 FY04FY04 FY05FY05 FY06FY06 Fy07Fy07FY01FY01FY99FY99


41

NISSAN ValueNISSAN Value--Up breakthroughsUp breakthroughs

Infiniti global tier-1 luxury brandInfiniti global tier-1 luxury brand

42

ChinaChinaChinaChina

RussiaRussia

Western Europe

Western Europe KoreaKorea

JapanJapan

　Top class・Global・luxury brand　　　Top classTop class・・GlobalGlobal・・luxury brandluxury brand　　

InfinitiInfiniti

United StatesUnited States

43


Infiniti global tier-1 luxury brand

Geographic expansion



44

Continuous development of new marketsContinuous development of new markets

500500

750750

1,2501,250

1,0001,000

250250

00

1,5001,500

1,7501,750

FY08FY08～～

(( tho

usan

d un

its)

thou

sand

uni

ts)

MercosurMercosur

IndonesiaIndonesia

China / TaiwanChina / Taiwan

Korea / Egypt Middle East

Thailand / ASEAN

Korea / Egypt Middle East

Thailand / ASEAN

IndiaPakistan

IndiaPakistan

FY01FY01 FY03FY03 FY04FY04 FY05FY05 FY06FY06 FY07FY07FY02FY02


FY00FY00

45

RussiaRussia

EgyptEgypt IndiaIndia

AfricaAfrica

Geographic expansionGeographic expansion

ASEANASEAN

MiddleEast

MiddleEast

ChinaChinaPakistanPakistan

46




Leading Competitive Countries




47

Leading Competitive Countries, new opportunities in sourcing decisions

Cost competitiveness and effective

supplier relations to be key for growth

in China and GOM

Leading Competitive CountriesLeading Competitive Countries

48

Customer satisfactionCustomer satisfaction

Other breakthroughsOther breakthroughs

49





Potential: Light Commercial Vehicles




Potential: Light Commercial Vehicles

50

00

22

44

66

88

1010

--33 --22 --11 00 11 22 33 44Global market share changeGlobal market share change

CO

P M

argi

n (%

)C

OP

Mar

gin

(%)

◆◆ NISSANNISSAN ◆◆ Figures of competitors are in 2003 incl. estimationFigures of competitors are in 2003 incl. estimation　　

HONDA

1999

2000

2001

GM

RENAULT PSA

FORD

TOYOTA

DCX

VW

BMW

20022003 2007

HYUNDAI

Maintaining top operating marginMaintaining top operating marginwhile growingwhile growing

Fiscal Year 2003 Small Meeting - Nissan · BMW INFINITIINFINITI LEXUS Sales Performance : Infiniti Division 0 500 1,000 1,500 2,000 2,500 3,000 3,500 ... exchange fluctuation Rising

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