CARLOS GHOSN, PRESIDENTE DA ALIANÇA RENAULT NISSAN NA "AUTO FOCO"
0425 FINAL 060425 ENG Ghosn Media PRINT · 4/25/2006 · SOS / April – March basis FY06 outlook...
Transcript of 0425 FINAL 060425 ENG Ghosn Media PRINT · 4/25/2006 · SOS / April – March basis FY06 outlook...
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
April 25, 2006
Carlos GhosnPresident & CEO
FY05 financial results NISSAN Value-Up update
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
AgendaAgenda
FY05 sales performance
FY05 financial performance
NISSAN Value-Up update
FY06 outlook
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Global retail sales
0
1,500
2,000
3,000
3,500
2,500
FY01 FY02 FY03
3,389
2,530
3,057
(tho
usan
d un
its)
FY05
3,569+5.3%
FY05 sales performance
FY99 FY00 FY04
NRPNISSAN
Value-Up
2,771
NISSAN 180
2,5972,633
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Retail sales: Japan
0
200
400
800
1,000842
-0.7%848
(tho
usan
d un
its)
600
FY04 FY05
Industry TIV: 5.9 million (+0.7%)
FY05 sales performance
Market share 14.4% (-0.2 point)
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Industry TIV: 17.0 million (+0.8%)
Retail sales: U.S.
0
300
600
1,200
1,500
1,075+6.1%
1,013
(tho
usan
d un
its)
900
FY04 FY05
FY05 sales performance
Market share: 6.3% (+0.3 point)
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
0
80
100
140
160
120
FY02 FY03 FY04
(tho
usan
d un
its)
FY05
U.S. : Infiniti sales
132
96
124
134+1.3%
FY05 sales performance
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
0
200
300
500
600541
-0.6%544
(tho
usan
d un
its)
400
FY04 FY05
Retail sales: Europe
Industry TIV: 20.5 million (+3.5%)
FY05 sales performance
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
(tho
usan
d un
its)
Retail sales: General Overseas Markets*
GOM
FY05 sales performance
*Including Mexico and Canada
0FY04 FY05
200
400
800
1000
600
1,111+13.0%
983
FY04 FY05
China
194
297+53.4%
115
182
94
PC sales
LCV sales100
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
(tho
usan
d un
its)
Middle East Thailand
FY04 FY05
Latin America Taiwan
70
46
105
Australia
54-14.8%
67 65-7.1%
41-11.1%
63
83+24.1%
126+20.2%
0
20
60
40
80
100
Retail sales: General Overseas Markets FY05 review
120
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Agenda
FY05 sales performance
FY05 financial performance
NISSAN Value-Up update
FY06 outlook
Agenda
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
FY04 FY05(billion yen)
FOREXfor FY05
¥113.3/$1¥136.9/€1
Change
Consolidated net revenue 9,428.3 +9.9%8,576.3
Consolidated operating profit 871.8 +1.2%861.2
Operating margin 9.2% -0.8points10.0%
FY05 financial performance
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Impact on operating profit
FY05 financial performance
(bill
ion
yen)
800.0
850.0
900.0
950.0
1,000.0
1,050.0
1,100.0
1,150.0
FY05O.P.871.8
FY04O.P.861.2
Purchasingcost
reduction+160.0
R&Dexpenses
-22.6
Manufacturing expenses
-16.9
FOREX+117.8
Salesexpenses
(Incl. incentives)
-52.9
Price/volumemix
+20.4
Productenrichment & regulations
-69.0
Warrantyexpenses
-37.0
G&A others-10.2
Scope of
consolidation+21.0
Raw materialEnergy Cost
-100.0
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Operating profit by region (billion yen)
Eliminations: FY04 -0.4, FY05 : -32.4
FY05FY04
100
50
0
EUROPE
FY05FY04
GOM (Including Mexico)
84.8
U.S. (+CAN)
FY05FY04
379.7
FY04
JAPAN
FY05
400
200
0
341.1
390.4
FY05 financial performance
101.2
345.4
56.0 67.2
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
FY04 FY05(billion yen) Change
Consolidated net revenue 9,428.3
Consolidated operating profit 871.8
+9.9%
+1.2%
Operating margin 9.2% -0.8points
8,576.3
861.2
Non-operating loss -25.9 -20.4-5.5
Net extraordinary loss -36.9 +25.5-62.4
Ordinary profit 845.9 -1.1%855.7
10.0%
FOREXfor FY05
¥113.3/$1¥136.9/€1
FY05 financial performance
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
FY04 FY05(billion yen) Change
CAPEX 475.0 -0.5%477.5
R&D 447.6 +12.4%398.1
Income before tax 809.0 +2.0%793.3
Minority interest -36.5 -13.6-22.9
Taxes -254.4 +3.7-258.1
Tax rates 31.4% -1.1points32.5%
Net income 518.1 +1.1%512.3
Depreciation 307.1 +19.3%257.4
FY05 financial performance
Net cash (auto business) 372.9 +167.1205.8FOREXfor FY05
¥113.3/$1¥136.9/€1
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
0
10%
15%
5%
20%
25%
NISSAN 180 NISSAN Value-UpNRP
7.5%
19.8%21.3%
12.7%
ROIC average of 20%
FY00 FY02 FY03 FY04 FY05 FY06 FY07FY01FY99
Return on invested capital (auto)
COPFixed assets
+ Net working capital
ROIC(Auto)
=
20.1%*
*Same scope of co nsolid atio n as P&L, excluding chang e of cash co mpar ed to FY03
1.3%
NISSAN Value-Up commitments
19.4%
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
29
NISSAN 180 NISSAN Value-UpNRP
Div
iden
d pe
r sh
are
/ ye
n
19
14
24
40
34
7
0
8
Nissan Value-Up Dividend policy
FY99 FY00 FY01 FY02 FY03 FY07*
20
10
40
0
30
FY04 FY05 FY06*
*Forecast
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
AgendaAgenda
FY05 sales performance
FY05 financial performance
NISSAN Value-Up update
FY06 outlook
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
0
2
4
6
8
10
12
-3 -2 -1 0 1 2
Global Market Share Change from 1999 (%)
CO
P m
argi
n (%
)
GM
RENAULT
PSADCX
HONDA
BMW
HYUNDAI
FORD
VW
◆ Nissan ◆ Competitors in 2004
1999
2000
2001
20022003
2004 2007
NRP
NISSAN180
Top level operating profit margin
NISSAN Value-Up commitments
3
NISSANValue-Up
TOYOTA
as of March 2004
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
+791
2,597
3,389
Global sales volume
0
2,000
1,000
FY01 FY04 FY08*
4,000
3,000
Tho
usan
d un
its
4,200 commitment
*Forecast
+811
NISSAN Value-Up commitments
NISSAN 180 NISSAN Value-UpNRP
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
0
10%
15%
5%
20%
25%
NISSAN 180 NISSAN Value-UpNRP
7.5%
19.8%21.3%
12.7%
ROIC average of 20%
FY00 FY02 FY03 FY04 FY05 FY06 FY07FY01FY99
Return on invested capital (auto)
COPFixed assets
+ Net working capital
ROIC(Auto)
=
20.1%*
*Same scope of co nsolid atio n as P&L, excluding chang e of cash co mpar ed to FY03
1.3%
NISSAN Value-Up commitments
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Leading Competitive Countries
Light Commercial Vehicles
Infiniti globally recognized luxury brand
Geographic expansion
Major breakthroughs NISSAN Value-Up update
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Infiniti globally recognized luxury brandNISSAN Value-Up update
0
130
135
145
150148
+3.9%
142
(tho
usan
d un
its)
140
FY04 FY05
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Infiniti Retail Environment Design Initiative
Launch in Korea : July 2005
Infiniti globally recognized luxury brandNISSAN Value-Up update
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Infiniti globally recognized luxury brandNISSAN Value-Up update
Taiwan
Middle East
North America
Japan*
*Japan launch under study after NISSAN Value-Up
China 07
Russia Fall 06
Korea July 05Europe 08
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
NISSAN 180 NISSAN Value-UpNRP
Light Commercial VehiclesNISSAN Value-Up update
8.0%
tho
usan
d un
its
FY00 FY03 FY07*0
300
400
200
100
0
6%
4%
8%
2%
Co
nsol
idat
ed o
pera
ting
mar
gin
FY01 FY02 FY04 FY05
7.7%
400+28.2%
434+40%
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Light Commercial VehiclesNISSAN Value-Up Update
specialized LCV dealerships being put in place
Japan
specialized LCV dealerships to be introduced
Europe dedicated team in place to implement strategy
North America
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Thailand
China
Egypt
Maximize opportunities, minimize costsFY05 outsource and off-shore = 14 billion yen in savings
India
RomaniaHungary
Vietnam Mexico
Mercosur
BreakthroughNISSAN Value-Up updateLeading Competitive Countries
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Geographic expansionNISSAN Value-Up Update
Pakistan
Thailand
Gulf Countries
Eastern Europe
Jun 05: new subsidiary
IndiaDec 05: Sunny SOP
Egypt
March 06: New PV technical center 06: Production capacity expansion
China
Apr 05: new sales company
Ukraine
09: Start of new manufacturing plant in St. Petersburg
Russia
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
NISSAN Value-Up Update
90 billion yen investment to renovate R&D facilities in JapanNew engineering facility to open April 06
Design Center renovated by fall 06
Expansion in R&D
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Sales Volume
Calendar year 2005 (Passenger cars + LCVs)
0 2 4 6 8
Toyota
GM
Renault-Nissan
6.1
DCX
Ford
VAG
million of veh icle s
Evolution of market cap. global automakers
April 24 2006 / End of FY1998*March 99 for Japanese co.Dec. 98 for European co.
0 100 200 300 400 500
DCX
GM
Ford
VAG
Renault
Nissan
%
Honda
Toyota
-10010
NISSAN Value-Up Update
BMW
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
AgendaAgenda
FY05 sales performance
FY05 financial performance
NISSAN Value-Up update
FY06 outlook
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
New product launchesFY06 outlook
SOS basisApr.-Mar. basis
2nd half
8
9 new models
1st half
1
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
AltimaSentra
Infiniti G35
New product launches – U.S.FY06 outlook
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
JapanMiniLCV
New carSkyline
North AmericaEuropeCabstar
Compact CrossoverNote
Infiniti FX35/45 Infiniti M
SentraAltima
Infiniti G35Versa
(Tiida in Mex)
General Overseas MarketsGOM new car
Sylphy350Zcpe
TiidaLatio
Pick up
SentraAltima
Infiniti G35Sunny (SM3)
New product launches by region SOS / April – March basis
FY06 outlook
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
3,730+4.5%
Global retail sales objectiveFY06 outlook
0FY03 FY04 FY05
3,389
(tho
usan
d un
its)
3,569
2,000
2,500
3,500
4,000
3,000
3,057
*Including Mexico and Canada
FY06**
Industry TIV: 63.9 million (+0.8%)
+2.3% U.S.1,100
+0.5% Japan846
+3.7% Europe561
+10.1% GOM*1,223
**Forecast
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
Opportunities
NISSAN Value-UpVolatility in exchange rates
Higher commodity prices
Higher energy prices
Higher interest rates
Higher level of incentives
Risks
FY06 outlook
FY 2004 Third Quarter Rev iewFY05 f inanc ial result s/ NISSAN Value-Up Ap ril 25, 2006
FY05 FY06(billion yen) Change
Consolidated net revenue 10,075.0 +6.9%9,428.3
Net income 523.0 +0.9%518.1
Ordinary profit 870.0 +2.8%845.9
FOREXfor FY06
¥110.0/$1¥135.0/€1
R&D sales ratio
490.04.9%
+9.5%447.64.7%
CAPEXsales ratio
550.05.5%
+15.8%475.05.0%
Consolidated operating profit 880.0 +0.9%871.8
FY06 outlook