Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — H1 FY2011 Earnings Presentation
26 slides from Nissan Motor's earnings presentation, Nov 2, 2011
Slide 1: FY2011 first-half financial results
FY2011 first-half financial results Nissan Motor Co., LTD. November 2, 2011 www.nissan-global.com Key performance indicators: financial results (billion yen) Net revenue Operating Net income Free cash flow Net debt profit (Auto) (Auto) 4,319.1 4,367.4 334.9 309.7 208.4 215.7 -69.3 183.4 160.4 -320.4
Slide 2: The recovery actions
The recovery actions Global production in calendar base April to September total FY10 1H FY11 1H Variance FY10 Dom 575 540 -35 FY11 Overseas 1,445 1,712 +267 500 Total 2,020 2,252 +232 400 +18.5% +11.6% 420 +17.6% 441 +19.3% 389 +23.9% 385 396 (thousand units) 300 369 354 320 -22.4% 309 330 311 200
Slide 3: V-platform sedan launch / Zero-emission leadership
FY11 Business update V-platform sedan launch China : Jan 2011 India : Sep 2011 Average monthly US : Aug 2011 sales of over No.1 sales Booking of over 12,000 units in its segment 2,000 units in September Thailand : Oct 2011 Mexico : Jul 2011 Thailand's first Over 10,000 units sedan eco-car sold since
Slide 4: Nissan Motor Kyushu and Brazil plant
FY11 Business update Establishment of Nissan Motor Kyushu Co.,Ltd. 1,100 km Busan Tokyo 200 km Shanghai Nissan Kyushu Maximize manufacturing and cost competitiveness at Nissan in Japan. Produce half a million units Utilize geographical advantage to be cost leader; aim to be the cost benchmark as
Slide 5: Alliance and partnership / Nissan Green Program 2016
FY11 Business update Alliance and partnership 1.6L Diesel engine introduced 1.5L Diesel engine production QASHQAI in Europe in India First price entry car I4 Petrol/Diesel V6 Diesel Minicar JV 9 www.nissan-global.com FY11 Business update Nissan Green Program 2016 Shift to Increase renewable diversit
Slide 6: First-half sales performance
FY11 first-half sales performance FY11 first-half financial performance FY11 outlook 11 www.nissan-global.com FY11 first-half sales performance: Global TIV* vs. FY10 1H Retail volume vs. FY10 1H 37.34 Global +3.7% 2,225 Global +10.7% 36.01 2,009 1.94 Japan -23.7% 283 Japan -14.0% 7.77 North America
Slide 7: First-half sales performance: Japan and China
FY11 first-half sales performance: Japan TIV decreased 23.7% to 1.94 million Retail volume units (thousand units) -14.0% Serena and March contributed to sales in Japan despite a significant 328 283 drop in TIV. As a result, Nissan achieved a 14.6% market share Nissan LEAF achieved 2.9 k unit s
Slide 8: First-half sales performance: North America and Europe
FY11 first-half sales performance: North America TIV increased 6.3%* to 6.46 million units US Retail volume in the US +9.7%* Sales in the US sharply increased (thousand units) 15.3% to 269 k units in 2Q 445 489 Nissan LEAF achieved 6.7 k unit sales in the US Canada: Sales up 0.2% to 47.3 k u
Slide 9: First-half sales performance: Other markets
FY11 first-half sales performance: Other markets Sales in Latin America increased 36.7% to 98.3 k units. Sales in Brazil increased 88.2% to 29.3 k units Retail volume Sales in Thailand increased 23% to (thousand units) 35.1 k units +13.9% Sales in Indonesia increased 47.1% to 154 321 366 27.4
Slide 10: First-half financial performance
FY11 first-half financial performance Change (billion yen) FY10 1H FY11 1H Variance vs. FY10 (%) Net revenue 4,319.1 4,367.4 +48.3 +1.1% Operating profit 334.9 309.7 -25.2 -7.5% OP margin 7.8% 7.1% Non-operating -19.8 -14.3 Ordinary profit 315.1 295.4 -19.7 -6.3% Extraordinary 0.4 -18.7 Profit befor
Slide 11: Free cash flow and inventory management
FY11 first-half financial performance Free cash flow (Auto business) (billion yen) +189.7 +370.1 313.7 -152.6 +8.5 -93.5 160.4 -132.0 -29.8 Net cash AP / AR Inventory Tax / other Cash flow CAPEX* Net asset Other Free cash inflow from operating from sales investing flow P&L items activities operating
Slide 12: Net debt (Auto business)
Net debt (Auto business) (billion yen) 400 387.9 405.3 293.3 200 207.1 -320.4 bil JPY → -408.0 bil JPY* *Based on FX rates as of 3/31/2011 : USD : 83.2 29.7 22.8 EUR : 117.6 0 -69.3 -42.9 -200 -293.3 -314.8 -320.4 -400 2009 2010 2011 Mar Jun Sep Dec Mar Jun Sep Dec Mar Jun Sep FX: JPY/USD End of mon
Slide 13: FY11 outlook (revised on Nov 2nd)
FY11 outlook (Revised on Nov 2nd) vs FY11 Retail volume assumption previous outlook. 4,750 Global +3.3% 4,600 640 Japan +4.9% 610 1,350 North +1.5% 1,330 America (1,040) (US) (0.0%) (1,040) (thousand units) 670 710 Europe +6.0% 1,150 1,250 China +8.7% 840 800 Others -4.8% FY11 FY11 previous* revised
Slide 14: Operating profit variance analysis and conclusion
FY11 outlook (Revised on Nov 2nd) Operating profit variance analysis (billion yen) +45.0 +30.0 +9.0 510.0 460.0 -20.0 -14.0 FY11 FOREX Volume Selling Sales Other FY11 / mix finance. items Previous * exp. Revised forecast forecast O.P. * Previous outlook on June 23, 2011 O.P. 27 www.nissan-global.com
Slide 15: Conclusion
Conclusion 29 www.nissan-global.com 30 www.nissan-global.com
Slide 16: Appendix: FY11 outlook retail volume vs FY10
Appendix 31 www.nissan-global.com FY11 outlook (Revised on Nov 2nd) vs. FY10 Retail volume assumption 4,750 Global +13.5% 640 Japan +6.7% 4,185 1,350 North +8.4% America (1,040) (+7.7%) (US) 710 Europe +17.0% (thousand units) 1,250 China +22.1% 800 Others +12.8% FY11 FY10 revised outlook 32 www.niss
Slide 17: FY11 outlook vs FY10
FY11 outlook (Revised on Nov 2nd) FY10 (Revised) * Variance (billion yen) (B)-(A) (A) November 2, 2011 (B) Net revenue 8,773.1 9,450.0 +676.9 Operating profit 537.5 510.0 -27.5 OP margin 6.1% 5.4% -0.7% Ordinary profit 537.8 480.0 -57.8 Net income 319.2 290.0 -29.2 Net income ratio 3.6% 3.1% -0.5% C
Slide 18: Sales financing: funding sources and penetration
Sales financing : Funding sources (As of September 2011) Equity 11. 3% Group Finance ABS Off B/S (Inter-Company) 4.5% 27.1% Commercial ABS On B/S paper 19.8% 2.8% S/T Loan 2.4% Bonds Total funding amount 7.1% L/T Loan 3,813 billion yen 25.0% 35 www.nissan-global.com Retail Sales financing: penetrati
Slide 19: Sales financing: credit loss ratio, operating profit and assets
Sales financing: net credit loss ratio FY10 FY11 1H 1H Variance Lease: 0.05% Lease: 0.06% Lease: +0.01% NFS Retail: 0.28% Retail: 0.27% Retail: -0.01% Lease: 0.37% Lease: 0.10% Lease: -0.27% NMAC Retail: 1.01% Retail: 0.61% Retail: -0.40% Lease: 0.23% Lease: 0.17% Lease: -0.06% NCF Retail: 0.29% Ret
Slide 20: First-half operating profit variance analysis details
FY11 first-half financial performance Operating profit variance analysis (billion yen) 1. Foreign exchange impact -105.7 USD -90.7 (88.9 to 79.8) RUB -6.9 (2.93 to 2.81) CAD -3.7 (86.0 to 81.9) EUR* -0.1 AUD +3.7 (79.3 to 84.3) Others -8.0 2. Volume / mix +29.1 Japan -20.3 US -0.6 EUR +31.5 MEX&CAN
Slide 21: Second-quarter financial performance
FY11 second-quarter financial performance Change (billion yen) FY10 2Q FY11 2Q Variance vs. FY10 (%) Net revenue 2,268.9 2,285.5 +16.6 +0.7% Operating profit 167.0 159.3 -7.7 -4.6% OP margin 7.4% 7.0% Non-operating -6.9 -11.6 Ordinary profit 160.1 147.7 -12.4 -7.8% Extraordinary -2.2 -2.0 Profit bef
Slide 22: Second-quarter operating profit variance and non-operating items
FY11 second-quarter financial performance Operating profit variance analysis (billion yen) 1. Foreign exchange impact -50.7 USD -42.0 (85.9 to 77.9) RUB -3.4 (2.81 to 2.69) CAD -1.5 (82.6 to 79.6) EUR* -0.6 AUD +1.8 (77.5 to 81.9) Others -5.0 2. Volume / mix +27.1 Japan -17.0 US +18.8 EUR +8.3 MEX&C
Slide 23: Extraordinary gains/losses and non-operating items
FY11 first-half financial performance Detail of extraordinary gains/losses (billion yen) FY10 FY11 1H 1H Variance • Sale/disposal of fixed assets 6.2 -2.0 -8.2 • Sale of investment securities 1.9 10.4 +8.5 • Impairment loss on fixed assets -1.8 -6.3 -4.5 • Loss on disaster 0.0 -21.1 -21.1 • Others -
Slide 24: Second-quarter free cash flow (Auto business)
FY11 second-quarter financial performance Detail of extraordinary gains/losses (billion yen) FY10 FY11 2Q 2Q Variance • Sale/disposal of fixed assets 1.6 -1.4 -3.0 • Sale of investment securities 0.5 2.8 +2.3 • Impairment loss on fixed assets -1.8 -4.2 -2.4 • Others -2.5 0.8 +3.3 47 www.nissan-globa
Slide 25: Free cash flow variance and other markets retail sales
FY11 first-half financial performance (billion yen) Free cash flow (Auto business) variance FY10 FY11 Variance 1H 1H Net cash inflow from P&L items 462.4 370.1 -92.3 AP/AR 137.3 189.7 +52.4 Inventory -184.3 -152.6 +31.7 Tax/Others -111.8 -93.5 +18.3 Operating activities 303.6 313.7 +10.1 Capex * -11
Slide 26: Second-quarter retail sales: other markets
FY11 second-quarter retail sales FY11 2Q FY10 2Q Detail of other markets 120 90 80.7 (thousand units) 60 67.4 51.7 33.0 30 41.7 23.1 38.8 18.7 0 Asia & M.East Africa Latin Oceania America *Scope change between M.East and Africa 51 www.nissan-global.com 52 www.nissan-global.com