new mid-term plan fiscal year 2007 financial results...first time to hit 1-million mark 1,061 +22.1%...
TRANSCRIPT
1 New mid -term plan & FY 07 f inanc ial result s
New mid-term plan&
Fiscal year 2007 financial results
May 13, 2008
Carlos Ghosn President & CEO
New mid -term plan & FY 07 f inanc ial result s2
Net revenue(billion yen)
COP(billion yen)
Net income(billion yen)
FY06 FY07 FY06 FY07 FY06 FY07
FY07 financial results – key highlights
+11.6%
9,701.0
10,824.2
449.2482.3
755.5790.8
* FY06 result s exclude Q5 for apple-to-apple comparison
+4.7%
+7.4%
3 New mid -term plan & FY 07 f inanc ial result s
FY07 performance
FY08 outlook
NISSAN Value-Up review
New mid-term plan
4 New mid -term plan & FY 07 f inanc ial result s
FY07 global product launches
5 New mid -term plan & FY 07 f inanc ial result s
FY07 sales performanceGlobal retail sales
2,000
0
3,000
3,500
2,500
FY01 FY02 FY03
(tho
usan
d un
its)
FY07 FY99 FY00 FY04 FY05
3,0573,389
2,530
3,770+8.2%
2,5972,771
2,633
3,5693,483
FY06
4,000
NISSAN 180 NISSAN Value-UpNRP
6 New mid -term plan & FY 07 f inanc ial result s
200
400
800
600
721-2.5%
FY07 sales performance
(tho
usan
d un
its)
X-TRAIL
Serena Note
TIV: 5 .32 million units (-5.3%)
Nissan share: 13.6% (+0.4points)
GT-R740
0FY07 FY06
Retail sales by region: Japan
7 New mid -term plan & FY 07 f inanc ial result s
1,035 1,059+3.0%*
200
400
800
600
1,000
1,200
(tho
usan
d un
its)
*adjusted to daily selling rates(DSR)
TIV: 15.8 million units (-3.5%*)
Nissan share: 6.7% (+0.4 points)
Versa
Altima
Rogue
G35 Sedan
G37 Coupe
Infiniti EX
0FY07 FY06
FY07 sales performanceRetail sales by region: U.S.
8 New mid -term plan & FY 07 f inanc ial result s
540
636+17.9%
200
400
600
(tho
usan
d un
its)
X-TRAIL
QASHQAI
TIV*: 21.9 million units (+6.1%)Nissan share*: 2.9% (+0.3 points)
* Nissan estimated
0FY07 FY06
FY07 sales performanceRetail sales by region: Europe
9 New mid -term plan & FY 07 f inanc ial result s
Retail sales by region: General Overseas Markets
200
400
800
1,000
600
FY07 sales performance
1,200
869
(tho
usan
d un
its)
Livina
First time to hit 1-million mark
1,061+22.1%
0FY07 FY06
10 New mid -term plan & FY 07 f inanc ial result s
Retail sales by region: General Overseas MarketsFY07 sales performance
(tho
usan
d un
its)
Middle East
0
50
100
132+17.1%
146
0
200
400
PV
128
235
307
151
458
China
363
600
LCV
150
250
200 198+36.4%
FY07 FY06
+26.0%
FY07 FY06
11 New mid -term plan & FY 07 f inanc ial result s
4
FY07 technology advancements
# o
f in
nova
tive
car
tech
nolo
gies
NAVI-ICC
Intelligent Pedal
Pop Up Engine Hood
LDP
On-board ecodriving se rvice
VVEL
Around Vie wMon itor
Premium Midship package
Dual c lutch transmission
Full Speed Range ICC
10
2 2 2
5
3
5
10 all-new technologies
FY 00 01 02 03 04 05 06 07
12 New mid -term plan & FY 07 f inanc ial result s
Gasoline Engine Technology: VVEL*
FY07 technology advancements
VVEL
Contributes to a 10% reduction in CO2 emissions, improves torqueoutput by 10%
* VVEL = variable valve event and li ft
13 New mid -term plan & FY 07 f inanc ial result s
Before actuator operates
After actuator operates
Pop Up Engine Hood
FY07 technology advancements
14 New mid -term plan & FY 07 f inanc ial result s
Monitor display (example)
Around View Monitor
FY07 technology advancements
15 New mid -term plan & FY 07 f inanc ial result s
System control
Warning!
Lane Departure Prevention
FY07 technology advancements
16 New mid -term plan & FY 07 f inanc ial result s
(billion yen)
Consolidatednet revenue
Consolidatedoperating profit
Operating profitmargin
FY07 financial performance
Net income
FOREXRate
FY06 (Published)
10,468.6
776.9
7.4%
(B)/(A)
Variance
10,824.2 +11.6%
790.8 +4.7%
7.3% -0.5points
(B)
FY07
117.0 JPY/USD
148.2 JPY/EUR
114.4 JPY/USD161.6 JPY/EUR
(A)
FY06 (Excl. 5Q)*
9,701.0
755.5
7.8%
117.0 JPY/USD146.2 JPY/EUR
482.3 +7.4%449.2460.8
Net cash 254.7 180.3
* Reference
17 New mid -term plan & FY 07 f inanc ial result s
29
Div
iden
d pe
r sh
are
/ ye
n
19
14
24
40
34
7
0
8
FY07 dividend policy
FY99 FY00 FY01 FY02 FY03 FY07
20
10
40
0
30
FY04 FY05 FY06
NISSAN 180 NISSAN Value-UpNRP
18 New mid -term plan & FY 07 f inanc ial result s
FY07 performance
FY08 outlook
NISSAN Value-Up review
New mid-term plan
19 New mid -term plan & FY 07 f inanc ial result s
Global retail sales objective
0
(tho
usan
d un
its)
2,000
2,500
3,500
4,000
3,000
FY08 outlook
3,900+3.5%
FY07FY04 FY06
3,389
3,5693,770
FY08FY05
3,483
20 New mid -term plan & FY 07 f inanc ial result s
JapanMini SUV
CubeFairlady Z
Teana Murano
North AmericaEuropeTeana
MuranoGT-R370Z
FXMaxima
G37 Convertible370Z GT-R
General Overseas MarketsBakkie successor
MuranoX-TRAIL
Grand Livina
FY08 all-new product launches
All-new global launchesRegional launches
QASHQAI+2G37
G37 CoupeEXFX
9 all-new global launches
21 New mid -term plan & FY 07 f inanc ial result s
Opportunities
Risks
+ Product launches + TIV growth in emerging markets+ LCV growth+ Infiniti global expansion+ LCC utilization (parts and services)+ Expansion of alliance with AvtoVAZ
– Model mix deterioration– TIV decline in mature markets– Commodity and energy prices– FOREX
Risks and opportunities
22 New mid -term plan & FY 07 f inanc ial result s
FY07 FY08(billion yen)
Consolidated net revenue 10,350.0
Net income 340.0
Ordinary profit 545.0
CAPEX sales ratio
470.04.5%
R&Dsales ratio
500.04.8%
Consolidated operating profit 550.0
FY08 outlook
10,824.2
482.3
766.4
790.8
114.4 JPY/USD 100.0 JPY/USDFX rateassumption
*1 Forecast
457.54.2%
428.94.0%
*2
*1
*2 Incl. vendor tooling f rom FY08 ( 60.0 billion yen in FY08)
23 New mid -term plan & FY 07 f inanc ial result s
FY07 performance
FY08 outlook
NISSAN Value-Up review
New mid-term plan
24 New mid -term plan & FY 07 f inanc ial result s
NISSAN Value-Up commitments
Top level operating profit margin amongglobal automakers in FY05-07
Profit commitment
25 New mid -term plan & FY 07 f inanc ial result s
NISSAN Value-Up commitmentsProfit commitment
4.2 million sales in FY08
Volume commitment
FY09
Top level operating profit margin amongglobal automakers in FY05-07
26 New mid -term plan & FY 07 f inanc ial result s
NISSAN Value-Up commitments
20% average ROIC over the plan
Profit commitment
4.2 million sales in FY08
Volume commitment
Return on invested capital
17% average ROIC achievedTop level among global automakers
FY09
Top level operating profit margin amongglobal automakers in FY05-07
27 New mid -term plan & FY 07 f inanc ial result s
FY07 performance
FY08 outlook
NISSAN Value-Up review
New mid-term plan
28 New mid -term plan & FY 07 f inanc ial result s
Consolidated net revenueRevenue growth evolution
0
FY01 FY02 FY03FY99 FY00 FY04 FY05 FY06 FY07
NISSAN 180 NISSAN Value-UpNRP
10,000
4,000
8,000
6,000(bill
ion
yen)
10,824
5,9776,196
6,090
7,4298,577
9,428
6,829
10,469
75%
12,000
29 New mid -term plan & FY 07 f inanc ial result s
0
FY01 FY02 FY03FY99 FY00 FY04 FY05 FY06 FY07
NISSAN 180 NISSAN Value-UpNRP
Sales volume evolutionGlobal retail sales
2,000
3,000
3,500
2,500
(tho
usan
d un
its) 3,057
3,389
2,530
3,770
2,5972,771
2,633
3,569
3,483
4,000
45%
30 New mid -term plan & FY 07 f inanc ial result s
31 New mid -term plan & FY 07 f inanc ial result s
FY00 FY01 FY02 FY03 FY04 FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12
NISSAN 180 NISSAN Value-UpNRP NISSAN GT 2012
NISSAN GT 2012
“Revive our company”
“Completerevival on track for profitable
growth”
“Value up withsustained
performance”
“Growth and trust”
32 New mid -term plan & FY 07 f inanc ial result s
In products, services, brands and management
Quality leadership
NISSAN GT 2012 commitments
33 New mid -term plan & FY 07 f inanc ial result s
Quality Quality leadershipleadership
Quality leadership
Perceived Quality &
Attractiveness
No. 1 position in 50+% of all segments
Product Quality
Top level in all Most Influential Indicators
Sales &
Service Quality
Top level CS in Japan, U.S., Europe & 4 main regions
Quality of Management
Top level industry norm
34 New mid -term plan & FY 07 f inanc ial result s
ドイツ 中国
米国U.S.: “Consumer Reports”
South Africa: PSI
Italy: “Quattroruote”
Brazil: “Quatro Rodas”
Great Britain: “What Car?”
China: JDP IQS
Germany: “ADAC”
Influential external indicatorsInfluential external indicators
Quality leadership
35 New mid -term plan & FY 07 f inanc ial result s
In products, services, brands and management
EV introduced in FY10 [U.S. and Japan] and mass-marketed in FY12 [Global]
Quality leadership
Zero-emission leadership
NISSAN GT 2012 commitments
36 New mid -term plan & FY 07 f inanc ial result s
0
45,000
50,000
55,000
60,000
65,000
70,000
0197 0399 05 0791 93 95
Global TIV evolution since 1990
(tho
usan
d un
its)
*Japan: FYOthers: CY
37 New mid -term plan & FY 07 f inanc ial result s
ドイツ 中国
米国
Number of vehicles per 1,000 persons
Source: JAMA “World Motor Vehicle Stat ist ics 2008”
1,0006004000 200 800(vehicle units)
150150
Russia
Germany
U.S.
India
China
Brazil
UK
Japan
France
800800
600600
250250
<50<50
38 New mid -term plan & FY 07 f inanc ial result s
ドイツ 中国
米国
UU..SS..FY10FY10
IsraelIsraelFY11FY11
DenmarkDenmarkFY11FY11
JapanJapanFY10FY10
Zero emission leadership
MassMass--marketed globally in FY12marketed globally in FY12
39 New mid -term plan & FY 07 f inanc ial result s
In products, services, brands and management
60 all-new models launched by FY12More than 15 new technologies/year from FY09
5% revenue growth on average over 5 years
Quality leadership
Zero-emission leadership
NISSAN GT 2012 commitments
EV introduced in FY10 [U.S. and Japan] and mass-marketed in FY12 [Global]
40 New mid -term plan & FY 07 f inanc ial result s
ドイツ 中国
米国6060
130130
New New productsproducts
StartsStarts of of productionproduction
Number of new product launchesNumber of new product launches
Sustained revenue growth
41 New mid -term plan & FY 07 f inanc ial result s
ドイツ 中国
米国
22//33
New New segmentsegmentmodelsmodels
ReplacementReplacementmodelsmodels
Number of new product launchesNumber of new product launches
11//33
Sustained revenue growth
42 New mid -term plan & FY 07 f inanc ial result s
ドイツ 中国
米国
Broader market and segment coverageBroader market and segment coverage
79%
94%
Mar
ketC
over
age
(%)
FY07 FY12
Sustained revenue growth
43 New mid -term plan & FY 07 f inanc ial result s
Update by IR or CEO-Com
NISSAN 180 NISSAN Value-UpNRP NISSAN GT 2012
Value – dividend policy
Div
iden
d pe
r sh
are
/ ye
n
29
1914
24
4034
7
0
8
20
10
40
0
30
504644
42
Dividend policy
FY 99 01 02 03 04 05 06 0700 08 09 10 11 12
44 New mid -term plan & FY 07 f inanc ial result s
CommitmentsQuality leadership
Zero emission leadership5% revenue growth on average over 5 years
Qua
lity
lead
ersh
ip
Bus
ines
sex
pans
ion
Mar
ket
expa
nsio
n
Cos
tle
ader
ship
Quality for all aspects of our business & operationEffectiveness & Efficiency
NISSAN WAY
Employee motivation Quality of managementPeople
NISSAN GT 2012
5 corporate breakthroughs
Zero
em
issi
onle
ader
ship
45 New mid -term plan & FY 07 f inanc ial result s
5 corporate breakthroughs
Quality leadership
Zero-emission leadership
46 New mid -term plan & FY 07 f inanc ial result s
Reducing COReducing CO22 emissions through new emissions through new technologies on powertrains and vehiclestechnologies on powertrains and vehicles
60
40
20
100
80
0
CO
2E
mis
sio
n (
%)
Clean dieselVVEL+DIGGasoline Engines Nissan
Original Hybrid
EV
Roadmap toward zero emissionRoadmap toward zero emission
47 New mid -term plan & FY 07 f inanc ial result s
# o
f in
nova
tive
car
tech
nolo
gies
10 10
2 2 2
45
3
5
NAVI-ICC
Intelligent Pedal
Pop Up Engine Hood
LDP
On-board ecodriving service
VVEL
Around ViewMonitor
Premium Midship package
Dual clutch transmissionFull Speed Range ICC
FY 00 01 02 03 04 05 06 07 08 09 10 11 12
>15
More than 15 new technologies from FY09More than 15 new technologies from FY09
48 New mid -term plan & FY 07 f inanc ial result s
Clean Diesel EngineTo be launched in Japan in fall 2008
M9R Engine
FY08 new technology advancementsFY08 new technology advancements
49 New mid -term plan & FY 07 f inanc ial result s
Ultra-Low Precious Metal Catalyst
Reduce precious metals by half for lower cost and cleaner emission
FY08 new technology advancementsFY08 new technology advancements
50 New mid -term plan & FY 07 f inanc ial result s
Smart Auto Headlight for TwilightReduce accident risk by unique sensor technology
FY08 new technology advancementsFY08 new technology advancements
51 New mid -term plan & FY 07 f inanc ial result s
Intelligent Seatbelt
Automatic seatbelt winding-up at emergency turn and slip
FY08 new technology advancementsFY08 new technology advancements
52 New mid -term plan & FY 07 f inanc ial result s
5 corporate breakthroughs
Quality leadership
Zero-emission leadership
Business expansion
53 New mid -term plan & FY 07 f inanc ial result s
(tho
usan
d un
its)
100
150
250
300
200
50
FY12FY07
150
300
Double sales volumeDouble sales volume
Business expansion: InfinitiBusiness expansion: Infiniti
54 New mid -term plan & FY 07 f inanc ial result s
TaxiTaxi
MiniMini
VanVan
Light busLight bus
Light duty truckLight duty truck
PickupPickup
Business expansion: Business expansion: LCVLCV
55 New mid -term plan & FY 07 f inanc ial result s
FY08 FY09 FY11 FY12FY10FY07
490
250
0
750
1000
500
980
(bill
ion
yen)
Business expansion: Business expansion: LCVLCV
Double revenueDouble revenue(including OEM and J/V sales, conversion business)(including OEM and J/V sales, conversion business)
56 New mid -term plan & FY 07 f inanc ial result s
2011: Alliance ultra2011: Alliance ultra--lowlow--cost car cost car with Renault and Bajajwith Renault and Bajaj
Business expansion: Business expansion: global entry carsglobal entry cars
57 New mid -term plan & FY 07 f inanc ial result s
ドイツ 中国
米国
IndiaIndia ThailandThailand
Business expansion: Business expansion: global entry carsglobal entry cars
Sourced and produced in Sourced and produced in 5 LCC countries5 LCC countries
including India and Thailand including India and Thailand
AA--PlatformPlatform
58 New mid -term plan & FY 07 f inanc ial result s
5 corporate breakthroughs
Quality leadership
Zero-emission leadership
Business expansion
Market expansion
59 New mid -term plan & FY 07 f inanc ial result s
ChennaiChennai
Mumbai
Chakan
Delhi
LCV
PVManufacturing
R&DCaptive Center
Partner: Ashok LeylandSOP: 2010
Partner: RenaultSOP: 2010
Partner: RenaultFrom 2008
OEM (Export to Europe)Supplier: Maruti-SuzukiScope: A-seg vehiclesSOS: 2009
M&S Partner
Partner: HoverScope: M&S operations
Alliance Ultra Low Cost CarPartners: Bajaj, Renault Scope: Ultra Low Cost CarSOP: 2011
NISSAN MOTOR INDIANISSAN MOTOR INDIA
Market expansion: IndiaMarket expansion: India
60 New mid -term plan & FY 07 f inanc ial result s
(tho
usan
d un
its)
100
200>200*
* Volume includes Ashok Leyland
Market expansion: IndiaMarket expansion: India
0FY12FY07
61 New mid -term plan & FY 07 f inanc ial result s
(tho
usan
d un
its)
100
50
15
>100
Market expansion: BrazilMarket expansion: Brazil
0FY12FY07
62 New mid -term plan & FY 07 f inanc ial result s
400
800
(tho
usan
d un
its)
600
200
PV
LCV
600
307
458
>800
Market expansion: ChinaMarket expansion: China
0FY12FY07
151 200
63 New mid -term plan & FY 07 f inanc ial result s
100
200
(tho
usan
d un
its)
300
>282
141
Market expansion: RussiaMarket expansion: Russia
0FY12FY07
64 New mid -term plan & FY 07 f inanc ial result s
100
200
300
(tho
usan
d un
its)
400
198
>400
Market expansion: Middle EastMarket expansion: Middle East
0FY12FY07
65 New mid -term plan & FY 07 f inanc ial result s
5 corporate breakthroughs
Quality leadership
Zero-emission leadership
Business expansion
Market expansion
Cost leadership
66 New mid -term plan & FY 07 f inanc ial result s
Volume per parts increase
Materialoptimization
Logisticsimprovement
Deep localization
Spec challenge
NISSAN GT 2012
Productivity improvement3-3-3 activity
Supplier NissanTrust
Bu
sin
ess
g
row
th
Co
mp
lex
ity
/div
ers
ity
red
uct
ion
Alliance Component
Cost Cost leadershipleadership: purchasing cost reduction: purchasing cost reduction
67 New mid -term plan & FY 07 f inanc ial result s
FY12
Volume per parts increase
Cost leadership: Cost leadership: purchasing cost reductionpurchasing cost reduction
FY07
Double volume per parts Double volume per parts (=industrial benchmark level)(=industrial benchmark level)
Product diversity reduction
Parts complexity reduction
Parts carry-over and carry across
68 New mid -term plan & FY 07 f inanc ial result s
ChinaMexico
50%
Design to LCC
Specification to local market
FY10-11A-platform
100%
FY07
Tier1 71%
Tier N 56%
Tier1 88%
Tier N 64%
Tier1 90%Tier1 90%Tier N same levelTier N same level
Deeper localization with suppliers
Cost leadership: Cost leadership: purchasing cost reductionpurchasing cost reduction
69 New mid -term plan & FY 07 f inanc ial result s
Material usage reduction
Scrap and abundant rate improvement (including scrap recycling expansion)
Material spec optimization
50%
100% 50% reduction in 50% reduction in precious metalsprecious metals
per vehicleper vehicle
Material challenge
Cost leadership: Cost leadership: purchasing cost reductionpurchasing cost reduction
FY09+FY10 new modelsFY07
70 New mid -term plan & FY 07 f inanc ial result s
2010: Plant in Chennai, planned capacity of 400K units2011: Alliance ultra-low-cost car with Bajaj
India
Morocco
2010: Plant in Tangiers, planned capacity of 400K units
U.S., Japan, Israel and Denmark
Preparation to mass-market Alliance EV
Russia
New partnership with AvtoVAZ
RenaultRenault--Nissan Alliance synergiesNissan Alliance synergies