NISSAN Revival Plan Review & NISSAN 180 Presentation NISSAN Revival Plan Review & NISSAN 180 Presentation FY2001 Financial Results Preview
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