nissan revival plan two years after announcement and ...€¦ · nissan revival plan two years...
TRANSCRIPT
Nissan Revival PlanNissan Revival PlanTwo Years After Announcement and Two Years After Announcement and Fiscal Year 2001 HalfFiscal Year 2001 Half--Year Financial Year Financial
PreviewPreview
Carlos Carlos GhosnGhosn
President & CEOPresident & CEO
Nissan Motor Co., Ltd.Nissan Motor Co., Ltd.
AgendaAgenda
• Introduction
• First half fiscal year 2001 performance
• First half fiscal year 2001 financial estimate
• Fiscal year 2001 Outlook
• Conclusion
First Half Fiscal Year 2001 First Half Fiscal Year 2001
Global sales volume (retail)Global sales volume (retail)
First Half FY2001 : 1,286,000First Half FY2001 First Half FY2001 :: 1,281,2866,000,000
First Half FY2000 : 1,337,000First Half FY2000 :First Half FY2000 : 1,337,0001,337,000
Down 3.8%Down 3.Down 3.88%%
First Half Fiscal Year 2001First Half Fiscal Year 2001Nissan retail sales (First Half FY00 Nissan retail sales (First Half FY00 --vv-- FY01)FY01)
Japan TIV up 0.9%Nissan up 2.1%Market share 17.6%335 342
0
100
200
300
400
500
(thousand units)
J apan U .S . E urope G O M
2000 2001
Fiscal year 2001Fiscal year 2001Bluebird/Sylphy Cima
X-Trail Primera
AvenirElgrand
CefiroAtlas
SkylineCube
Fiscal year 2000Fiscal year 2000
min
or
all
new
Wingroad
Presage/Bassara
Liberty
Caravan
SkylineStagea
March
(Mar 02)
Fiscal Year 2001Fiscal Year 2001Japan product launchesJapan product launches
Fiscal Year 2001Fiscal Year 2001
Japan TIV: 4.0 million down 2.6%Volume: 729,000 down 0.5%Market Share: 18.2% up 0.4
JapanJapan TIVTIV:: 4.0 4.0 millionmillion down 2.6%down 2.6%VolumeVolume:: 729,000729,000 down 0.5%down 0.5%Market ShareMarket Share:: 18.2%18.2% upup 0.40.4
Full year forecast as of October 18, 2001Full year forecast as of October 18, 2001Full year forecast as of October 18, 2001
Fiscal year 1999Fiscal year 19994 of 434 of 43
12% of total volume12% of total volume
Fiscal year 2000Fiscal year 200011 of 4011 of 40
27% of total volume27% of total volume
Fiscal year 2001Fiscal year 200118 of 3818 of 38
42% of total volume42% of total volume
First Half Fiscal Year 2001First Half Fiscal Year 2001Number of profitable models in JapanNumber of profitable models in Japan
First Half Fiscal Year 2001First Half Fiscal Year 2001Nissan retail sales (First Half FY00 Nissan retail sales (First Half FY00 --vv-- FY01)FY01)
U.S. TIV down 5.7%Nissan U.S. down 14.0%Market share 4.0%
*N.A. down 12.7% with Canada up 7.4%
335 342
406
349
0
100
200
300
400
500
(thousand units)
J apan U .S . E urope G O M
2000 2001
Frontier
Fiscal year 2000Fiscal year 2000
min
or
all
new
Fiscal year 2001Fiscal year 2001
Q45Q45 AltimaAltima
XterraFrontier CC Long bedFrontier CC Long bedMaxima 3.5
Sentra SERInfiniti I35Infiniti I35
Fiscal Year 2001Fiscal Year 2001US product launchesUS product launches
First Half Fiscal Year 2001First Half Fiscal Year 2001
$500
$1,000
$1,500
$2,000
$2,500
$3,000
19961996 19971997 19981998 19991999 20002000 20012001
GMGM
FordFordChryslerChrysler
ToyotaToyota
HondaHonda
NissanNissan
(Source: CNW market research)
U.S. incentive levelsU.S. incentive levels (through September (through September
(Source: company disclosure)
0 5 10 15 20 25 30 (%)
28.6%27.3%
24.1%21.6%
NISSAN
CHRYSLER
FORD
TOYOTA
GM
MAZDA
9.9%12.5%
Honda?
Flee
t as
a pe
rcen
tage
of s
ales
First Half Fiscal Year 2001First Half Fiscal Year 2001U.S. fleet sales (as of 2Q) U.S. fleet sales (as of 2Q)
First Half Fiscal Year 2001First Half Fiscal Year 2001 U.S. segment reviewU.S. segment review
Fiscal Year 2001Fiscal Year 2001
U.S. TIV: 15.7million down 8.6%Volume: 680,000 down 8.6%Market Share: 4.3% no change
U.S. TIVU.S. TIV:: 15.15.77millionmillion down 8.down 8.66%%VolumeVolume:: 680,000 680,000 down 8.6%down 8.6%Market ShareMarket Share:: 4.3%4.3% no changeno change
Full year forecast as of October 18, 2001Full year forecast as of October 18, 2001Full year forecast as of October 18, 2001
Japan TIV: 4.0 million down 2.6%Volume: 729,000 down 0.5%Market Share: 18.2% up 0.4
JapanJapan TIVTIV:: 4.0 4.0 millionmillion down 2.6%down 2.6%VolumeVolume:: 729,000729,000 down 0.5%down 0.5%Market ShareMarket Share:: 18.2%18.2% up 0.4up 0.4
First Half Fiscal Year 2001First Half Fiscal Year 2001
Europe TIV down 1.7%Nissan down 5.5%Market share 2.8%
*Europe first half FY is Jan-June
Nissan retail sales (First Half FY00 Nissan retail sales (First Half FY00 --vv-- FY01)FY01)
335 342
406
349
289 273
0
100
200
300
400
500
(thousand units)
J apan U .S . E urope G O M
2000 2001
Fiscal year 2001Fiscal year 2001Fiscal year 2000Fiscal year 2000
min
or
all
new
AlmeraAlmera Tino
X-Trail
Navarapickup
Fiscal Year 2001 Fiscal Year 2001 Europe product launchesEurope product launches
*Europe FY is Jan-Dec
Fiscal Year 2001Fiscal Year 2001
Europe TIV: 16.4 million down 1.9%Volume: 490,000 down 8.1%Market Share: 2.8% down 0.2
Europe TIVEurope TIV:: 16.4 16.4 million million down 1.9%down 1.9%VolumeVolume:: 490,000490,000 down 8.1%down 8.1%Market ShareMarket Share:: 2.8%2.8% down 0.2down 0.2
U.S. TIV: 15.7 million down 8.6%Volume: 680,000 down 8.6%Market Share: 4.3% no change
U.S. TIVU.S. TIV:: 15.7 15.7 million million downdown 8.6%8.6%VolumeVolume:: 680,000 680,000 down 8.6%down 8.6%Market ShareMarket Share:: 4.3%4.3% no changeno change
Full year forecast as of October 18, 2001Full year forecast as of October 18, 2001Full year forecast as of October 18, 2001
Japan TIV: 4.0 million down 2.6%Volume: 729,000 down 0.5%Market Share: 18.2% up 0.4
JapanJapan TIVTIV:: 4.0 4.0 millionmillion down 2.6%down 2.6%VolumeVolume:: 729,000729,000 down 0.5%down 0.5%Market ShareMarket Share:: 18.2%18.2% up 0.4up 0.4
335 342
406
349
289 273 280 293
0
100
200
300
400
500
(thousand units)
J apan U .S . E urope G O M
2000 2001
First Half Fiscal Year 2001First Half Fiscal Year 2001
General overseas marketsGeneral overseas marketsNissan up 4.6%Nissan up 4.6%
•• Mexico up 14.1% Mexico up 14.1%
Nissan retail sales (First Half FY00 Nissan retail sales (First Half FY00 --vv-- FY01)FY01)
Fiscal year 2001Fiscal year 2001Fiscal year 2000Fiscal year 2000
PatrolAustralia
GCC
X-TrailMexico
AustraliaSouth AfricaSingapore
CaravanMexicoGCC
ThailandHong Kong
Bluebird Sylphy/HSSouth AfricaPhilippines
Datsun/PickupAustraliaThailand
GCC
Bluebird Sylphy/HSMexico
AustraliaGCC
TaiwanThailandMalaysia
Fiscal Year 2001Fiscal Year 2001GOM product launchesGOM product launches
first half FY 2001
U.S.(plus Canada)
29%
Europe21%
GOM23%
Japan27%
first half FY 2000
GOM21%
Japan25%
U.S.(plus Canada)
32%
Europe22%
First Half Fiscal Year 2000First Half Fiscal Year 2000--11Regional distribution comparison Nissan retail salesRegional distribution comparison Nissan retail sales
Fiscal Year 2001Fiscal Year 2001
GOM volume: 617,000 up 7.7%GOM volumeGOM volume:: 617,000617,000 up 7.7%up 7.7%
Total volume*: 2,571,000 down 2.3%Total volume*Total volume*:: 2,571,0002,571,000 down 2.3%down 2.3%
*Global number includes Canada forecast of 55K units
Europe TIV: 16.4 million down 1.9%Volume: 490,000 down 8.1%Market Share: 2.8% down 0.2
Europe TIVEurope TIV:: 16.4 16.4 million million down 1.9%down 1.9%VolumeVolume:: 490,000490,000 down 8.1%down 8.1%Market ShareMarket Share:: 2.8%2.8% down 0.2down 0.2
U.S. TIV: 15.7 million down 8.6%Volume: 680,000 down 8.6%Market Share: 4.3% no change
U.S. TIVU.S. TIV:: 15.7 15.7 million million down 8.6%down 8.6%VolumeVolume:: 680,000 680,000 down 8.6%down 8.6%Market ShareMarket Share:: 4.3%4.3% no changeno change
Full year forecast as of October 18, 2001Full year forecast as of October 18, 2001Full year forecast as of October 18, 2001
Japan TIV: 4.0 million down 2.6%Volume: 729,000 down 0.5%Market Share: 18.2% up 0.4
JapanJapan TIVTIV:: 4.0 4.0 millionmillion down 2.6%down 2.6%VolumeVolume:: 729,000729,000 down 0.5%down 0.5%Market ShareMarket Share:: 18.2%18.2% up 0.4up 0.4
- 8%
-14.5%- 6.5%
80
85
90
95
100
FY00 FY01 FY02
(pur
chas
ing
cost
redu
ctio
ns b
asel
ine
as o
f FY
1999
)
CommitmentActual
-20% NRP Target
-11%
-18%FY01
First Half Fiscal Year 2001First Half Fiscal Year 2001PurchasingPurchasing cost reductionscost reductions
23
OppamaOppama
MurayamaMurayama
TochigiTochigi
KyushuKyushu
ShonanShonan
KyotoKyoto
AichiAichi
0
1
2
3
4
5
6
7
March/Cube
Sunny/Alm
era
Presea
Bluebird
Primera
/G20
Crew
Cefiro/I30
/Maxim
a
Skylin
e/Lau
rel
Cedric
Gloria
wCed
ric G
loria
Cedric
sedan
Cima/
Q45Pres
ident
Silvia
Fairlad
yW
ingroad
Avenir Prai
rieSta
gea
R'nessa/
Presag
eSe
rena
Terran
o/Caravan
/Elgrand
Safar
iCivilia
nDats
unJapan manufacturing system: Japan manufacturing system: 19991999
7 7 plantsplants 24 24 platformsplatforms
24
Japan manufacturing system: Japan manufacturing system: 20012001
0
1
2
3
4
5
6
7
B SM
Crew
Cefiro/
I30/M
axim
a
Skylin
e GTR
Cedric
seda
n
Cedric
Glor
iaFR-L
Avenir
Prairie
Presag
eSere
naTerr
ano/E
lgran
dCara
van
Safari
Datsun
OppamaOppama
TochigiTochigi
KyushuKyushu
ShonanShonan
4 4 plantsplants 15 15 platformsplatforms
25
Japan manufacturing systemJapan manufacturing systemCapacity UtilizationCapacity Utilization
4 4 plantsplants15 15 platformsplatforms
* plus Kyoto producing only Civilian * plus Kyoto producing only Civilian ---- low volume low volume
0
1
2
3
4
5
6
7
OppamaOppama
TochigiTochigi
KyushuKyushu
ShonanShonan 52%52%52%
64%64%64%
28%28%28%
45%45%45%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
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%
Average75.7%
Pre NRPPre NRPPre NRP
Average51%
26
Japan manufacturing system: Japan manufacturing system: 20042004
0
1
2
3
4
5
6
7B
FF-L
FR-L SM
Cedr
ic Se
dan
Aven
ir/Pr
arie
Terra
no/E
lgran
d
Seda
nDa
tsun
4 4 plants plants 12 12 platformsplatforms
OppamaOppama
TochigiTochigi
KyushuKyushu
ShonanShonan
Cara
vanC
First Half Fiscal Year 2001First Half Fiscal Year 2001
• Improved R&D efficiencyR&D cost per vehicle declined more than 25%
• Domestic network restructuring335 outlets closed12 dealers transferred to private sector
28(including temp & part time at start of FY99)
148.0
133.8139.2
128.1127.0
110
120
130
140
150
Apr 99 Sep 00 Apr 01 Sep 01 Apr 03
(thou
sand
em
ploy
ees)
NRP NRP projected projected
levellevel
First Half Fiscal Year 2001First Half Fiscal Year 2001Consolidated net head count statusConsolidated net head count status
Real estate 22Real estateReal estate 2222Marketable securities 59Marketable securitiesMarketable securities 5959
Asset sale proceeds billion yenAsset sale proceeds Asset sale proceeds billion yenbillion yen
Total 81TotalTotal 8181
Cumulative asset sales 422Apr. 01, 2000 - Sep. 30, 2001 - - 85% of planCumulative asset salesCumulative asset sales 422422Apr. 01, 2000 Apr. 01, 2000 -- Sep. 30, 2001 Sep. 30, 2001 -- -- 85% of plan85% of plan
First Half Fiscal Year 2001First Half Fiscal Year 2001Reallocating resourcesReallocating resources
FY00FY00 FY02FY02
Skyline Skyline
StageaStagea
AltimaAltima
MarchMarch
CaravanCaravan
FY01FY01
Bluebird Bluebird
SylphySylphy
XX--TRAILTRAIL
CimaCima
PrimeraPrimera
Fiscal Year 2001Fiscal Year 20015 5 New products globallyNew products globally
Fiscal Year 2002Fiscal Year 2002Japan product launchesJapan product launches
Fiscal year 2002Fiscal year 2002Minicar
Luxury sedan
sedansedan
Luxury RV
RVwagon
Z-car Luxury coupe
wagonRV
Cube
sedan
min
or
all
new
March(02/03)
MarchMarch(02/03)(02/03)
Fiscal Year 2002Fiscal Year 2002U.S. product launchesU.S. product launches
Fiscal year 2002Fiscal year 2002Z-car
New CarNew carG35 SUV
Maxima
Infin
iti
Nis
san
SUV
Altima(01/08)
AltimaAltima(01/08)(01/08)
Fiscal year 2002Fiscal year 2002Primera• sedan• hatchback• wagon
Terrano IINavara
New LCV
New LCV
min
or
all
new
Almera
Micra(03/Q1)MicraMicra(03/Q1)(03/Q1)
Fiscal Year 2002Fiscal Year 2002Europe product launchesEurope product launches
Fiscal Year 2002Fiscal Year 2002General overseas market product launchesGeneral overseas market product launches
Gulf CountriesQ45 Mexico
New SUVPerformance Sedan
ASEANC-sedan
MercosurFrontier
South AfricaFrontier facelift
AustraliaZ-car
Fiscal year 2002Fiscal year 2002
New small car (from Renault)
Fiscal year 2002Fiscal year 2002JapanJapan
MinicarMinicarLuxury RVLuxury RV
ZZ--CarCarCubeCube
Luxury coupeLuxury coupeLuxury sedanLuxury sedan
U.S.U.S.ZZ--carcar
2 new 2 new SUVSUV’’ssMaximaMaxima
G35G352 luxury cars2 luxury cars
EuropeEuropePrimeraPrimera
LCVLCVLCVLCV
Fiscal Year 2002Fiscal Year 200222 New products launch events22 New products launch events
GOMGOMXX--TrailTrail Small Car ZSmall Car Z--CarCar CC--sedansedan Q45Q45 sedansedan
• United States• Thailand – decision not to take control• Indonesia• China opportunity
First Half Fiscal Year 2001First Half Fiscal Year 2001InvestmentsInvestments
Canton Plant as of October 2001Canton Plant as of October 2001
AgendaAgenda
• Introduction
• First half fiscal year 2001 performance
• First half fiscal year 2001 financial estimate
-18.9
134.4
187
88
58.5
20.436.4
-12.9
-61.1
18.6
58.1
-100
-50
0
50
100
150
200
91 92 93 94 95 96 97 98 99 '00 '01
(bill
ion
yen)
estim
ated
Figures before FY94 are adjusted by current rate method
First Half Fiscal Year 2001First Half Fiscal Year 2001Estimated consolidated net sales: 3 trillion yenEstimated consolidated net sales: 3 trillion yen
Half year consolidated operating profit FY 91Half year consolidated operating profit FY 91--0101
4.50%
1.90%
0.60%
1.10%1.80%
-0.50%
-2.20%-0.70%
0.60%
2.70%
6.2%
-3%
-1%
0%
1%
3%
4%
5%
7%
91 92 93 94 95 96 97 98 99 '00 '01
5.5% FY01 forecast
4.5% FY02 NRP commitment
First Half Fiscal Year 2001First Half Fiscal Year 2001Half year consolidated operating margin FY 91Half year consolidated operating margin FY 91--0101
Figures before FY94 are adjusted by current rate method
Japan 129
59
-30
-10
10
30
50
70
90
110
130
FY00 FY01
billi
on y
en
up 120%
U.S.
4781
-30
-10
10
30
50
70
90
110
130
FY00 FY01
billi
on y
en
down 42%
First Half Fiscal Year 2001First Half Fiscal Year 2001Half year operating profit by geographic segmentHalf year operating profit by geographic segment
Europe
-5-15
-30
-10
10
30
50
FY00 FY01
billi
on y
en
G.O.M. 3116
-30
-10
10
30
50
FY00 FY01
billi
on y
en
up 94%
First Half Fiscal Year 2001First Half Fiscal Year 2001Half year operating profit by geographic segmentHalf year operating profit by geographic segment
Japan 129
59
-30
-10
10
30
50
70
90
110
130
FY00 FY01
billi
on y
en
U.S.
4781
-30
-10
10
30
50
70
90
110
130
FY00 FY01
billi
on y
en
Europe
-5-15-30
-10
10
30
50
70
90
110
130
FY00 FY01
billi
on y
en
G.O.M.
3116
-30
-10
10
30
50
70
90
110
130
FY00 FY01
billi
on y
en
EliminationsFY01
-15 bil yn-15.0-7.0
-30.0
-10.0
10.0
30.0
50.0
70.0
90.0
110.0
FY00 FY01
billi
onye
n
First Half Fiscal Year 2001First Half Fiscal Year 2001Half year operating profit by geographic segmentHalf year operating profit by geographic segment
First Half Fiscal Year 2001First Half Fiscal Year 2001First half estimated figuresFirst half estimated figures
(billion yen) 09/00 09/01 Change
Net sales (revenue) 3,018.3 3,000 =
O perating profit 134.4 187 +39.1%
O perating margin 4.5% 6.2% --
Net income 172.0 230 +33.7%
Net return on sales 5.7% 7.7% --
First Half Fiscal Year 2001First Half Fiscal Year 2001Consolidated net automotive debt 1991Consolidated net automotive debt 1991--20012001
2,2572,100
1,349
953804 850
700
2,152
2,398
2,7372,8662,855
2,604
0
500
1,000
1,500
2,000
2,500
91 92 93 94 95 96 97 98 99 00 HY01 01 02
(bill
ion
yen)
FY 02Commitment
Initial Target
AgendaAgenda
• Introduction
• First half fiscal year 2001 performance
• First half fiscal year 2001 financial estimate
• Fiscal year 2001 Outlook
Risks & OpportunitiesRisks & Opportunities
Risks• Simultaneous global
slowdown
• Heightened competitionIncentives
RisksRisks•• Simultaneous global Simultaneous global
slowdown slowdown
•• Heightened competitionHeightened competitionIncentivesIncentives
Opportunities
• NRPEfficienciesProducts
• Foreign exchange rates
OpportunitiesOpportunities
•• NRPNRPEfficienciesEfficienciesProductsProducts
•• Foreign exchange ratesForeign exchange rates
Forecast for FY 2001Forecast for FY 2001
FY 01 Forecast:::: (billion yen))))
Net salesOperating profitOperating profit
Estimated net incomeEstimated net income
Net automotive debtNet automotive debt
6,3006,300350350330330
< 750< 750
AgendaAgenda
• Introduction
• First half fiscal year 2001 performance
• First half fiscal year 2001 financial estimate
• Fiscal year 2001 Outlook
• Conclusion