FY 2008 3 rd Quarter Financial Results



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Transcription:

FY 2008 3 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 114.2 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

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

global sales results 2,714 9 months 2,633 436 Change vs All regions -3.0% Japan -9.0% 898 3 rd quarter 731 Change vs All 3Q regions -18.6% 118 Japan -19.5% (thousand units) 903 417 North America Europe -10.3% -7.7% (thousand units) 236 111 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 479-9.0% 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% 12.9 12.6 Kix (%) 5

sales results (9 months): North America (thousand units) US retail volume 789-13.6%* 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 154.8 k units, market share improved 1.0% to 20.3% US market share 6.4 +0.7% 7.1 Versa Rogue (%) 6 *Variances on a straight-percentage basis sales results (9 months): Europe (thousand units) Retail volume 452-7.7% 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 2.7 2.7 (%) 7

sales results (9 months): GOM* (thousand units) Retail volume 777 +13.0% 877 General Overseas Markets increased 13.0% to 877 k units Middle East: Increased 30.9% to (thousand units) 336.5 214.3 122.2 Incl. China 400.4 +19.0% 265.5 134.9 Nissan +Infiniti DFL Thanks to strong results of new Teana, sales up 19.0% to 400.4 k units 184.9 k units X-TRAIL Teana 8 * GOM: General Overseas Markets sales results (9 months) financial results (9 months) outlook Recovery plan Future opportunities 9

financial results (9 months) (billion yen) Variance Net revenue 7,834.6 6,685.8-1,148.8-14.7% Operating profit 579.1 92.5-486.6-84.0% Non-operating -17.2-2.5 Ordinary profit 561.9 90.0-471.8-84.0% Extraordinary -30.6-42.3 Profit before tax 531.3 47.7-483.5-91.0% Net income 344.6 43.2-301.5-87.5% FX rate 117.4 JPY/USD 162.9 JPY/EUR 102.9 JPY/USD 151.1 JPY/EUR -14.5 JPY/USD -11.8 JPY/EUR 10 financial results (9 months) Operating profit variance analysis (billion yen) 579.1-188.6-176.2-85.2-36.6 92.5 O.P. Price / volume mix FOREX Provision for Others residual risk on leased O.P. vehicles 11

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 3,770 721 3,382 606 Global -10.3% Japan -16.0% 3,658 1,263 3,069 vs actual Global -16.1% (thousand units) 1,352 636 1,061 1,121 520 1,135 North America -17.1% (US: -20.0%) Europe -18.2% GOM +7.0% 1,151 594 650 1,060 883 437 689 Japan -16.1% North America -23.3% Europe -26.4% GOM +6.0% * * 13 * Forecast

outlook Revised on Feb 9, 2009 (billion yen) (Actual) (Previous) Oct. 31, 2008 (A) * (Revised) Feb 9, 2009 (B) * (B)-(A) Variance Net revenue 10,824.2 9,600.0 Operating profit 790.8 270.0 Ordinary profit 766.4 260.0 Net income 482.3 160.0 8,300.0-180.0-190.0-265.0-1,300.0-450.0-450.0-425.0 R&D sales ratio 457.5 4.2% 460.0 4.8% 460.0 5.5% CAPEX sales ratio FX rate assumption (JPY/USD) 516.4 4.8% 114.4 ** 420.0 4.4% 103.1 415.0 5.0% 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) 270.0-60.9-22.5-345.0-21.6-180.0 * O.P. (Previous) FOREX Provision for residual risk on Price / volume mix leased vehicles Others * O.P. (Revised) 15 * Forecast

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

Labor cost reduction billion yen 900 800 875-20% 700 700 600 500 0 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

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 240 235 215 200k 0 March 2008 December 2008 March 2010 21 * Include DFL as 100% affiliate

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 09 22 Tighter Nissan inventory management 800 Volume (k units) 700 720 600 500 400 300 200 100 0 630 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

Right-sizing operations 900 800 Revise global production based on market demand 1,000 Volume (k units) 4,000 3,000-21% 3,713 2,926 700 600 500 0 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* 533 489-21% 415* 384-14% 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

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 2010 26 Product pipeline adjustment Shift from 60 60 to to 48 48 product launches over 5 years Total: 28 SOS 11 10 7 8 Total: 48 SOS 9 Average 10 FY05 FY06 FY09 FY10 FY11 FY12 27

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) 100 80 FY13 60 30 40 50 60 Number of engines 29

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 FY09 120 billion yen already identified 31

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

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% 0 2004 2005 2006 2007 2008 2009 Forecast 34 Source: Global Insight, Jan. 2009 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 2010 35

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

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 17 15 Starwings in China 2 2 2 4 Ultra-Low Precious Metal Catalyst 5 3 5 10 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 00 01 02 03 04 05 06 07 08 09 10 11 12 # of innovative car technologies 39

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