FY rd Quarter Financial Results

Transcription

1 FY rd Quarter Financial Results February 9, 2009 Nissan Motor Co., Ltd. third first-half quarter financial results Tough business environment Global financial and economic crisis continues to evolve : Total industry volumes: Global total industry volume was estimated to 69 million units, now to be 62 million / -10% as estimation Recession in mature markets and slow-down in emerging markets Foreign exchange rates: Significant negative impact from the yen strengthening against major currencies JPY/USD at end of Dec 07 -> 91.0 JPY/USD at end of Dec 08 [+20%] 4.64 JPY/RUB at end of Dec 07 -> 3.10 JPY/RUB at end of Dec 08 [+33%] Financial market: Severity of the financial crisis has far exceeded expectations Consumer confidence fell and access to credit tightened (US consumer confidence : 37.7 in January to the lowest level since 1967) 1

2 sales results (9 months) financial results (9 months) outlook Recovery plan Future opportunities 2 product launches (9 months) Europe Teana Qashqai+2 EX Murano FX G37 G37 Coupe Global launch *1 Regional launch *2 Japan Kix Cube Fairlady Z Teana X-TRAIL Clean Diesel Murano General Overseas Markets NP200 Livina Series Murano Rogue Navara Qashqai Teana X-TRAIL EX FX G37 G37 Coupe North America FX Maxima GT-R 3 *1 Global launch: new model as global basis *2 Regional launch: new model that has already sold in other region

3 global sales results 2,714 9 months 2, Change vs All regions -3.0% Japan -9.0% rd quarter 731 Change vs All 3Q regions -18.6% 118 Japan -19.5% (thousand units) North America Europe -10.3% -7.7% (thousand units) North America Europe -29.3% -24.9% 877 GOM* +13.0% 266 GOM* -1.3% 3Q 3Q 4 * GOM: General Overseas Markets sales results (9 months): Japan (thousand units) Retail volume % 436 TIV decreased 6.4% with the lowest registered car demand in December since 1968 Launched Kix in October, Cube in November and Fairlady Z in December Domestic production decreased 29.5% in Oct. to Dec. Cube Fairlady Z Market share -0.3% Kix (%) 5

4 sales results (9 months): North America (thousand units) US retail volume %* 682 TIV decreased 21.2%* in US Nissan s US market share improved 0.7% to 7.1% Production in North America decreased 37.3% in Oct. to Dec. (US: -52.6%, Mex: -13.3%) Canada: Sales up 11.1% to 64.6 k units, market share improved 0.7% to 5.1% Mexico: Sales down 2.3% to k units, market share improved 1.0% to 20.3% US market share % 7.1 Versa Rogue (%) 6 *Variances on a straight-percentage basis sales results (9 months): Europe (thousand units) Retail volume % 417 TIV decreased 8.3% especially in Spain (-34.3%) and UK (-16.2%) Sales in Russia increased 12.5% while TIV increased 8.3% Infiniti launched in Western Europe Production in Europe decreased 44.6% in Oct. to Dec. Market share 0.0% Qashqai+2 Infiniti FX (%) 7

5 sales results (9 months): GOM* (thousand units) Retail volume % 877 General Overseas Markets increased 13.0% to 877 k units Middle East: Increased 30.9% to (thousand units) Incl. China % Nissan +Infiniti DFL Thanks to strong results of new Teana, sales up 19.0% to k units k units X-TRAIL Teana 8 * GOM: General Overseas Markets sales results (9 months) financial results (9 months) outlook Recovery plan Future opportunities 9

6 financial results (9 months) (billion yen) Variance Net revenue 7, , , % Operating profit % Non-operating Ordinary profit % Extraordinary Profit before tax % Net income % FX rate JPY/USD JPY/EUR JPY/USD JPY/EUR JPY/USD JPY/EUR 10 financial results (9 months) Operating profit variance analysis (billion yen) O.P. Price / volume mix FOREX Provision for Others residual risk on leased O.P. vehicles 11

7 sales results (9 months) financial results (9 months) outlook Recovery plan Future opportunities 12 outlook Revised retail sales objective and production plan - Retail volume - - Production volume - vs actual 3, , Global -10.3% Japan -16.0% 3,658 1,263 3,069 vs actual Global -16.1% (thousand units) 1, ,061 1, ,135 North America -17.1% (US: -20.0%) Europe -18.2% GOM +7.0% 1, , Japan -16.1% North America -23.3% Europe -26.4% GOM +6.0% * * 13 * Forecast

8 outlook Revised on Feb 9, 2009 (billion yen) (Actual) (Previous) Oct. 31, 2008 (A) * (Revised) Feb 9, 2009 (B) * (B)-(A) Variance Net revenue 10, ,600.0 Operating profit Ordinary profit Net income , , R&D sales ratio % % % CAPEX sales ratio FX rate assumption (JPY/USD) % ** % % 99.7 (Q4: 90.0) ** 14 * Forecast ** Incl. domestic vendor tooling ( : 87.5 billion yen, : 53.0 billion yen) outlook Operating profit variance analysis ( previous plan vs revised plan) (billion yen) * O.P. (Previous) FOREX Provision for residual risk on Price / volume mix leased vehicles Others * O.P. (Revised) 15 * Forecast

9 sales results (9 months) financial results (9 months) outlook Recovery plan Future opportunities 16 Suspension of NISSAN GT 2012 Continue focusing on EV and quality Zero-emission leadership EV introduced in FY10 and mass marketed in FY12 Quality leadership In products, services, brands and management During financial crisis Remains a corporate objective Optimize with limited resources Revenue growth 5% growth on average over 5 years Suspend and focus on free cash flow management 17

10 Labor cost reduction billion yen % FY09 *exchange rate: 95 JPY/USD **Labor cost in high-cost countries such as Japan, US., and Europe 18 Labor cost reduction Additional measures Salary reduction: Examples Cut by 10% for all board members and corporate officers from March 2009 until the situation improves Cut by 5% for all managers at Nissan Motor Company and at all of Nissan s affiliates in Japan from March 2009 until the situation improves No bonus for the board of directors in 19

11 Labor cost reduction Additional measures Reduce working hours In Japan, overtime reduced by 30% since the beginning of, with an additional 75% in FY09 Adjust production days In Japan, production days will be reduced by 50% in February and March In U.S., operating on four-day work weeks Negotiate work sharing scheme for employees 20 Global headcount 250k Headcount 240k 230k 220k 210k k 0 March 2008 December 2008 March * Include DFL as 100% affiliate

12 Labor cost reduction Additional measures Keep hiring to a minimum in high-cost countries Cut travel by 75% Suspend sponsorship of corporate sports teams Baseball club (both in HQ and Kyushu) From January 10 Table tennis club From April 09 Track and field club From April Tighter Nissan inventory management 800 Volume (k units) Mar 2008 Apr May Jun Jul Aug Sep Oct Nov Dec Jan 2009 Actual - 24% 480 Feb Mar Forecast Dealer inventory, except some countries 23 Consolidated Nissan inventory, except some countries

13 Right-sizing operations Revise global production based on market demand 1,000 Volume (k units) 4,000 3,000-21% 3,713 2, Plan Actual Plan Actual Plan Actual PlanForecast 1 st QTR 2 nd QTR 3 rd QTR 4 th QTR Actual 2,000 1,000 Forecast PlanForecast 24 * Exclude DFL-LCV Capital expenditure reduction Reduce with frugal management billion yen 545.9* 516.4* % 415* % 330 FY06 FY09 * Gross capex, including Japan vendor tooling (36.9Byen in FY06, 87.5Byen in. 53.0Byen in ) ** Gray is for corporate vehicles 25

14 Capital expenditure reduction Morocco Rationalize capacity expansion plans to to reflect economic conditions Plant in Tangiers Suspended India PV Plant in Chennai Slow ramp-up with one production line SOP on schedule for next-generation March/Micra in Product pipeline adjustment Shift from to to product launches over 5 years Total: 28 SOS Total: 48 SOS 9 Average 10 FY05 FY06 FY09 FY10 FY11 FY12 27

15 Portfolio efficiency improvement Portfolio composition Excludes OEM body types Align product plan to to market shift Accelerate efficiency improvement Luxury & LCV Middle Market Affordable & Entry FY13 56 body types 53 body types 28 EV Powertrain consolidation Focus on EVs for FF, HEV for FR and diesel for trucks Volume per engine (k units/yr) FY Number of engines 29

16 Preserving cash Additional measures Improving working capital by 130 billion yen during FY09 Planning sale of identified non-core assets and activities Proposing no dividend payment for 2 nd half of 30 Renault-Nissan Alliance synergies Further opportunities with Renault 180 billion yen contribution in cash flow for FY billion yen already identified 31

17 sales results (9 months) financial results (9 months) outlook Recovery plan Future opportunities 32 Future opportunities Right products, right place, right time Advanced prototype Global entry car 33

18 Entry car strategy Satisfying fast-growing global demand for affordable mobility 27% 26% 25% A+B segment as share of world demand 26% 24% 23% 22% 21% 22% 23% 24.0% 24.5% Forecast 34 Source: Global Insight, Jan Entry car strategy Global rollout of of affordable models in in 150+ countries, starting in in 2010 Dedicated new A-platform Status vehicles: modern & roomy 3 different body types SOP

19 Entry car sourcing Innovative sourcing with high localization and LCC utilization Thailand SOP in 2010 India China Designed to cost High localization Full LCC sourcing High volume: 1 million units/year Chennai plant construction 36 LCC = Leading Competitive Countries Zero-emission leadership 11 partnerships globally Growing network of partnerships for deployment of zero-emission mobility Denmark Eléctricité de France Portugal Enérgie Ouest Suisse Monaco Israel Kanagawa Yokohama Oregon Sonoma county Tennessee 37

20 Zero-emission leadership EV planning progressing rapidly Design selected in September 2008 SOP on schedule for 2010 Battery capacity of 50k/year confirmed at Zama Additional plant locations under review in U.S., Japan, Europe and China High-energy Li-ion battery module Advanced prototype 38 A full technology pipeline Clean Diesel Starwings in China Ultra-Low Precious Metal Catalyst NAVI- ICC Intelligent Pedal 11 Synchro-rev MT Smart Auto Head Light Ultra-Low Precious Metal catalyst New Navigation LDP System Clean VVEL Diesel Around View Intake Monitor Sound Creator Dual clutch transmission FR-7AT Full Speed SUV quiet Range ICC cabin Pop Up High Response Engine Hood S/ABS On-board eco Starwings driving service in China Premium VK Engine Midship package (V8+VEL) FY # of innovative car technologies 39

21 Top Management Organization Structure Chairman, President & CEO C. Ghosn CFO Dassas COO Design Shiga External Affairs CRO Corp. Plan, Control, G&A breakthrough Dodge R&D/TCSX Yamashita M&S/AS Endo MFG & SCM, SCM breakthrough Imazu Product plan, PDs, Infiniti, LCV, EV BU, IS Palmer Region Japan Asia Affiliates, Purchasing Saikawa Region Americas Tavares Region Africa, Middle East, India, Europe Dodge 40 41