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MA Financial GroupAnnuAl RepoRt 2014
ContentS
CONTENTS
ContentS
This annual report presents the results of Nissan Motor Corporation’s business activities for fiscal
2013. It is also provides an opportunity for investors to deepen their understanding of the Nissan
management team. President and CEO Carlos Ghosn and other executives share their vision of
Nissan’s philosophy and the direction the company is heading today.
02
03
04
05
VISION & MISSION
KEY FIGURES
TECHNOLOGY
FINANCIAL HIGHLIGHTS
07
MESSAGE FROM THE CEO
10
12
14
16
CHIEF COMPETITIVE OFFICER
CHIEF PLANNING OFFICER
CHIEF FINANCIAL OFFICER
CHIEF PERFORMANCE OFFICER
19
21
23
24
25
29
32
33
ZERO-EMISSION LEADERSHIP
NISSANʼS TECHNOLOGY DEVELOPMENT
AND NEW TECHNOLOGIES IN FISCAL 2014
FISCAL 2013 SALES PERFORMANCE
FISCAL 2014 SALES OUTLOOK
FISCAL 2013 FINANCIAL REVIEW
FINANCIAL STATEMENTS
EXECUTIVES
CORPORATE GOVERNANCE & INTERNAL
CONTROL
18
THE MID-TERM PLAN "NISSAN POWER 88"
Cover photo: Rogue
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01NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 CORPORATE FACE TIME
VISIon & MISSIon
Nissan: Enriching People’s Lives
Nissan has a clear vision for the future, and
− with our Alliance partner, Renault − we are
working with passion to achieve it.
Our mission is to enrich people's lives,
building trust with our employees, customers,
dealers, partners, shareholders and the world
at large.
Nissan provides unique and innovative automotive products
and services that deliver superior measurable values to all
stakeholders* in alliance with Renault.
* our stakeholders include customers, shareholders, employees, dealers and suppliers, as well as the communities where we work and operate.
02NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 CORPORATE FACE TIME
KeY FIGuReS
Nissan’s goal is to offer customers all around the world
innovative products and services while achieving further
growth. Here are some figures that show just where we are
today on the road to this destination.
note: all figures cover the fiscal year ending march 31, 2014, and are current as of that date.
* Based on continuation of proportionate consolidation of china JV
5,188,000VehiclesTotal Global Retail VolumeDuring fiscal 2013 we rolled out 10 new models6.2%Global Market ShareOur goal is to achieve 8% global market share by the end of fiscal 2016.¥11,434.8BillionNet Sales (Management pro forma basis*)Growth in vehicle sales numbers and easing of the strong yen brought about an 18.7% increase from the previous year.142,925People Employees (China JV equity basis)We have production facilities in 20 countries and regions. (As of March 31, 2013 excluding employees number)A+ BBB+ A3Long-term Credit RatingsNo change from FY 2012R&IS&PMOODY'S¥605.7BillionOperating Profit (Management pro forma basis*)We aim to achieve a sustainable operating margin of 8% by the end of fiscal 2016.5.3%Operating margin03NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 CORPORATE FACE TIME
teCHnoloGY
We pursue technological development in four areas: Safety, Environment, Dynamic Performance and Life on Board.
Based on the “Orchard Concept,” we set clear goals in each of these areas and direct our development efforts
toward achieving them.
nISSAn’S FouR StRAteGIC teCHnoloGY DeVelopMent FIelDS
page_21
click here for information on
new technologies.
Safety
Life on Board
life on Board
Safety
Realizing zero-fatality mobility.
Toward a world with virtually no accidents leading to death or
serious injury.
our goal is to continue advancing
automotive safety features and
improving them across the board as a
global leader in the safety field. By
bringing innovative new technologies
into being, we are progressing
toward this goal.
Environment
Dynamic Performance
Quality/Cost
Realizing zero-emission society.
environment
the orchard Concept
to reduce overall global co2
emissions to as low a level as
possible, we are pursuing the long-
term goal of zero-emission mobility
through our development and
popularization of electric and fuel-
cell vehicles. in the shorter term, we
are also striving to improve the
efficiency of our gasoline-powered
vehicles to the greatest possible
extent to reduce fuel consumption
and co2 emissions.
Harvest plan
Developing a plan to market new technologies,
capabilities and functions
Choosing the ideal timing for their introduction
Seeding & Growth
Identifying core technologies to drive development in
preparation for harvest
Formulating strategies to boost development efforts
Soil enrichment
Nurturing sustainable competencies required for
harvest, seeding & growth efforts
Advancing the basic research that will lead to
future harvests
Quality/Cost
Providing new experiences and values for every moment
spent in the vehicle.
from seats that offer near fatigue-
free comfort throughout a long drive
to vehicle interiors that give the
pleasure of ownership to our
customers, we aim to provide
unprecedented values and
experiences in all phases of driving:
from the moment people enter the
car through the actual driving and
right up to when they get out at the
end of the trip.
Dynamic performance
Giving drivers the experience they desire.
We analyze how people perceive,
judge and operate their cars from a
variety of angles. in this way we
produce numerical data and
insightful observations even on
subjective concepts like driving
sensations and habits. With this input
to guide our development efforts, we
use the knowledge gained to polish
our vehicles’ dynamic performance.
04NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 CORPORATE FACE TIME
FInAnCIAl HIGHlIGHtS
net sales*1
ordinary income
net income
comprehensive income
net assets
total assets
net assets per share
Basic net income per share
Diluted net income per share *3
net assets as a percentage of total assets
return on equity
price earnings ratio
cash flows from operating activities
cash flows from investing activities
cash flows from financing activities
cash and cash equivalents at end of fiscal year
employees *4
( ) represents the average number of part-time employees not included in the above numbers
for the years ended
mar. 31, 2014
mar. 31, 2013
mar. 31, 2012
mar. 31, 2011
mar. 31, 2010
2013
2012*2
2011
2010
2009
millions of yen
millions of yen
millions of yen
millions of yen
millions of yen
millions of yen
Yen
Yen
Yen
%
%
times
millions of yen
millions of yen
millions of yen
millions of yen
number
10,482,520
8,737,320
9,409,026
8,773,093
7,517,277
527,189
389,034
796,533
504,421
341,117
721,860
535,090
341,433
290,600
537,814
319,221
189,198
207,747
42,390
-
4,671,528
4,036,030
3,449,997
3,273,783
3,015,105
14,703,403
12,442,337
11,072,053
10,736,693
10,214,820
1,035.06
92.82
92.82
29.5
9.64
9.91
728,123
(1,080,416)
396,925
832,716
142,925
(21,750)
147,939
(22,642)
890.38
81.39
-
30.0
9.92
11.08
412,257
(838,047)
433,817
711,901
130,274
(22,442)
136,625
(23,307)
750.77
81.67
-
28.4
11.22
10.79
696,297
(685,053)
(308,457)
840,871
157,365
(34,775)
161,513
(35,099)
703.16
76.44
-
27.4
11.30
9.65
663.90
10.40
-
26.5
1.59
77.02
667,502
1,177,226
(331,118)
110,575
1,153,453
155,099
(27,816)
159,398
(28,089)
(496,532)
(663,989)
761,495
151,698
(17,600)
157,624
(17,908)
notes:
*1 net sales are presented exclusive of consumption tax.
*2 effective from fiscal 2013, international financial reporting standards (ifrs) 11 Joint arrangements, which was released on may 12, 2011, and international accounting standards (ias) 19 employee Benefits,
which was released on June 16, 2011, have been applied in some foreign subsidiaries and affiliates, and key financial data and trends for fiscal 2012 are adjusted.
*3 Diluted net income per share for fiscal 2009, fiscal 2010, fiscal 2011 and fiscal 2012 is not presented because the company had no securities with dilutive effects.
*4 staff numbers, which are presented as the lower numbers in the “employees” line, include those of unconsolidated subsidiaries accounted for by the equity method as reference data.
05NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 CORPORATE FACE TIME
Key figures for fiscal 2013
(Management pro forma basis*)
global demand in fiscal 2013 reached 83.11 million vehicles, up 4.8% from fiscal 2012. nissan's global sales volume climbed 5.6% to 5.188 million vehicles and global
market share was 6.2%.
net sales climbed 1,805.2 billion yen for the year to reach 11,434.8 billion yen. operating profit was 605.7 billion yen, for a profit margin of 5.3%.
Global Sales Volume/Market Share
Net Sales
(thousands of units)
(%)
12.0
(Billions of yen)
12,000.0
4,845
4,914
5,188
10.0
10,000.0
8,773.1
9,409.0
9,629.6
11,434.8
10,482.5
6,000
5,000
4,000
3,000
2,000
1,000
0
4,185
3,515
7,517.3
5.5
5.8
6.4
6.2
6.2
2009
2010
2011
2012
2013
8.0
6.0
4.0
2.0
0
(fY)
8,000.0
6,000.0
4,000.0
2,000.0
0
537.5
545.8
523.5
605.7
498.4
Operating Profit
(Billions of yen)
700.0
600.0
500.0
400.0
300.0
200.0
100.0
0
311.6
2009
2010
2011
2012
2013
(fY)
2009
2010
2011
2012
2013
(fY)
global sales volume (left)
market share (right)
management pro forma basis*
china JV equity basis
management pro forma basis*
china JV equity basis
341.4
342.4
319.2
389.0 389.0
Net Income
(Billions of yen)
400.0
300.0
200.0
100.0
0
42.4
Free Cash Flow（Auto business）
Net Cash（Auto business）
(Billions of yen)
(Billions of yen)
500.0
400.0
300.0
200.0
100.0
0
459.3
375.5
379.5
248.6
208.1 199.7
1,200.0
1,000.0
800.0
600.0
400.0
200.0
0
–200.0
619.8
293.3
–29.7
1,133.7
1,015.9
915.9
2009
2010
2011
2012
2013
(fY)
2009
2010
2011
2012
2013
(fY)
2009
2010
2011
2012
2013
(fY)
management pro forma basis*
china JV equity basis
management pro forma basis*
china JV equity basis
management pro forma basis*
china JV equity basis
* Based on continuation of proportionate consolidation of china JV
06NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 MeSSAGe FRoM tHe Ceo
CEO MESSAGE
to our stakeholders
the past fiscal year was one of progress, defined by solid financial results and
the achievement of important operational goals in several parts of our
business.
the latest 12-month period, covered in this annual report, saw nissan
deliver a 20% increase in net sales to 10.48 trillion yen and a 14% increase
in net income to 389 billion yen*.
this is a creditable result at the mid-point of power 88, our six-year
strategic plan. as part of that plan, nissan remains committed to achieving an
operating profit margin of 8% in 2016.
We are making encouraging progress towards that goal, particularly
against a backdrop of intense global competition, sluggish conditions in
europe and volatile demand in emerging markets. During the past year, we
also strengthened our management structure; set new convergence targets
for the renault-nissan alliance; brought new manufacturing capacity
onstream; unveiled breakthrough products; and continued to pioneer new
technologies.
But we have more to do. nissan is not yet operating to its full potential.
so we are accelerating efforts to build competitiveness, contain costs and
improve our brand power.
* china JV equity basis
power 88 Delivery
those efforts will reinforce our delivery of the power 88 plan.
as part of that plan, we last year enhanced our brand presence in every
segment from premium infiniti to entry-level Datsun – where new models
including Q50 and go were launched. the nissan brand saw the all-new
Qashqai and X-trail introduced to widespread acclaim. in total, nissan brought
10 new vehicles and 22 new technologies to market in the past year, and will
continue its product offensive in the current fiscal period.
in another pillar of power 88, nissan continued to champion zero-
emissions with the all-electric Leaf car and introduction of the e-nV200 van
and wagon. the Leaf now commands almost 50% share of the global
market for eVs, with aggregate sales surpassing 110,000 units. nissan is
contributing to wider eV adoption by supporting a wider recharging
infrastructure and eV fleet-penetration – not just in developed countries such
Carlos Ghosn
president and Chief executive officer
as Japan but in growth markets including Bhutan.
our brand-power and zero-emissions strategies are aligned with the
power 88 goal of increased sales power. nissan bolstered its sales presence
by implementing a new six-region sales organization during the year. We
expect this new structure to accelerate the growth achieved in fiscal 2013,
when unit sales rose by 5.6% to 5.19 million, equivalent to global market
share of 6.2%.
a strengthened senior management team also began work to implement
efforts to improve competitiveness, productivity and sales. Hiroto saikawa
took on the new role of chief competitive officer, charged with improving
nissan competitiveness and reducing our total delivered cost per vehicle.
trevor mann, was appointed chief performance officer with responsibility for
this new market organization. andy palmer was also named chief planning
officer, adding responsibility for our zero emission strategy and global
products to his planning and marketing roles. this team is focused on turning
the power 88 goals into reality.
07NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 CEO MESSAGE
Alliance
our growth potential also reflects benefits from the renault-nissan alliance,
which achieved combined sales of 8.3 million units last year. We are
committed to extracting further benefits from the alliance. We marked the
15th anniversary of the alliance by accelerating convergence in four key
functions engineering, manufacturing & supply chain management,
purchasing, and Human resources.
convergence in these four key business functions will result in an
immediate increase in efficiency and leverage our size to achieve competitive
economies of scale. the synergies will then enable us to deliver higher-value
vehicles to customers and stay at the leading edge of innovation. together,
these projects aim to deliver annualized synergies of at least €4.3 billion by
2016.
in parallel, we are continuing to develop alliance partnerships such as
joint-engine development with Daimler, mini cars with mitsubishi, with ashok
Leyland in commercial vehicles and, importantly, with avtoVaZ in the
promising russian market.
technology
our alliance ambitions coincide with a deep commitment to technological
innovation. nissan remains at the forefront of autonomous driving, which has
the potential to revolutionize our industry. nissan has pledged to bring
commercially viable autonomous drive vehicles by 2020. this initiative forms
part of nissan’s commitment to zero fatalities, and we have become the first
Japanese automaker to road-test autonomous-drive vehicles.
Year ahead
Looking forward, we anticipate continued sales growth in the current fiscal
year, benefiting from further product launches and the impact of new capacity
coming on-stream in markets including mexico and Brazil. nissan is launching
10 new vehicles this year, including the new murano, the new pulsar
c-segment hatchback in europe, the new zero-emissions e-nV200 in Japan
and europe, a number of Datsuns, a new one-ton pick-up truck and long-
wheel-base infiniti models in china. nissan will also continue to innovate and
expand in key areas such as light commercial vehicles, zero emissions and
aftersales.
this innovation-focus and product-launch schedule will enable nissan to
capitalize on market conditions as they improve around the world. We
continue to see improvements in our Us performance. europe is showing
signs of recovery. We remain positive about the russian market. sales are
also forecast to grow healthily this year in china, where we will begin
production of a Venucia-branded electric car, as well as two infiniti models,
whilst also opening our fourth plant in Dalian. together, such trends should
help offset any impact from the sales tax increase in Japan, which could
dampen consumer demand.
Conclusion
as detailed in this report, nissan is making satisfactory progress. We are
moving in the right direction, reflected by our financial results and sales
figures. in a further sign of confidence, we have increased the dividend pay-
out ratio from a minimum target of 25% to 30% for the remainder of the plan.
nissan is a company committed to exceeding expectations: for
customers, for suppliers, for employees and for shareholders alike. We will
relentlessly pursue growth opportunities and continue to focus on quality and
cost competitiveness, sales power, sustainability and innovation. nissan is on
the move. please join us for the journey.
carlos ghosn
president and chief executive officer
nissan motor co., Ltd.
08NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 eXeCutIVe pRoFIle
EXECUTIVE PROFILE
“Tight control on TdC is the key for us to connect all of our
costreduction efforts to the bottom-line and improve
profitability.”
“We have got a plan to deliver. It’s my job to execute that plan
to hold the organization to account. It’s exciting.”
“My role is to extract the best out of the company with our
teams while championing the interests of the customer.”
“When we look at the strength of the balance sheet and the
cash flow we’ve generated in our business over the course of
the plan, we think that increasing the pay-out ratio is the right
thing to do.”
Hiroto SaikawaChief Competitive OfficerJoseph G. PeterChief Financial OfficerAndy PalmerChief Planning OfficerTrevor MannChief Performance Officer09NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 Hiroto Saikawa
Chief Competitive officer
EXECUTIVE PROFILE
Hiroto Saikawa applies the principles of Monozukuri to four
global functions that he leads at nissan: research and
development, purchasing, manufacturing and supply chains,
and quality.
in his role as chief competitive officer, he seeks to improve the
competitiveness in each of these areas. as part of that wide-ranging task, he
is also responsible for delivering nissan’s platform strategy, its powertrain
plans, the expansion of the group’s manufacturing footprint and global
sourcing activities.
saikawa assumed these responsibilities following a high-level
re-organization last november. additionally, the company expanded the
regional management committees from three to six, each reporting to chief
performance officer trevor mann, and named andy palmer chief planning
officer with duties to include new growth-market opportunities, branding,
pricing and marketing.
saikawa, mann and palmer - together with chief financial officer
Joseph peter – comprise the senior four-man executive team charged with
executing nissan’s overall strategy and reporting to group chief executive
carlos ghosn.
“together we co-ordinate and implement the day-to-day operations in an
efficient and effective manner,” says saikawa. “our duty is to support the ceo
and deliver the company’s objectives.”
the chief competitive officer is no stranger to the weight of
responsibility. Before last year’s reorganization, he already had global
oversight for purchasing as well as leading the nissan management team
throughout asia, including the major markets of Japan and china. now,
delivering the group-wide strategy, he is focusing particularly on
cost-management.
significant action is underway to lower nissan’s total delivered cost, or
‘net tdc’ for every vehicle. this metric aims to reduce the unit-costs at nissan
in every part of the business from production and planning to technology,
feature enhancements, raw materials and regulatory costs. By lowering such
costs, nissan should see a significant and immediate impact on its profit
margins.
“We are now driving to an ideal tdc, seeking an optimum level of cost
control in areas including localized production, manufacturing efficiency, raw
material sourcing and the entire efficiency of the supply chain, including tier
two and three suppliers,” according to saikawa. “of course Monozukuri-
efficiency is the key, but to achieve total cost evolution, we must perform well
in other areas such as product-feature costs, regulatory costs, and warranty
costs.”
a network of tdc leaders has been put in place to make sure these
costs are properly controlled in every part of the business, focused on more
than 20 different areas of activity. this group-wide scrutiny is also being
applied to individual model programs, ensuring that every product is
cost-competitive.
10NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 EXECUTIVE PROFILE
nissan’s chief competitive officer says nissan is already reaping
rewards from the alliance’s common module family (cmf), reflected in the
launch and customer acclaim for the new rogue in north america, the award-
winning Qashqai in europe and the X-trail in Japan and china. “they have
been well accepted by customers, and from our viewpoint, they have been
showing the significant benefit of cmf approach in terms of competitiveness
and investment efficiency.
“now under a new alliance structure, we are extending this approach
from the c-D segment to a and B segments as well. this will definitely
provide huge benefit of scale and a further sharpened competitive edge to our
coming new products.”
Deeper integration between nissan and renault – while preserving the
distinct market tactics, product designs and cultures of the two brands – is
part of a far-reaching drive on competitiveness.
in pursuing that goal, saikawa is imposing a strict ‘pDca cycle’ on every
cost in the business. this is the discipline of ‘plan, Do, check, action’ in
seeking cost reductions.
“tight control on tdc is the key for us to connect all of our cost-
reduction efforts to the bottom-line and improve profitability,” he concludes. “it
will be one of the determining factors for our competitiveness in the market.”
it is a major challenge given the costs associated with the constant need
to enrich and refresh nissan products, to meet regulatory requirements, and to
provide customer value. “We are working intensively on product quality,
improving overall [customer] opinions of our models, further cost reductions
and tighter net revenue management,” says saikawa.
the chief competitive officer is determined to maintain tight
management of such costs, knowing that every 1% improvement in tdc is
worth 70 billion yen to nissan. that is why he regards cost-control – and
thereby improved competitiveness – as central to the nissan power 88
program.
“During the first half of power 88, we made progressive strategic
investments in product development, technology and business expansion,” he
adds. “We now must harvest the fruits of these investments.”
those investments included new plants in mexico and Brazil, expanded
operations in russia and india, as well as production in Vietnam. investment
costs, which peaked in the first half of the six-year mid-term plan, are now
expected to be flat or falling over the next three years. this will enable nissan
to improve its return on investments, feeding through to new growth
opportunities.
the disciplined approach to costs and investment extends beyond
nissan to the wider renault-nissan alliance. saikawa expects greater
alliance integration to provide huge opportunities to improve efficiency and
cost competitiveness.
to reduce duplication, the alliance has announced that is converging
four key business areas: r&D, manufacturing including supply-chain
management, purchasing and human resources. “converging those functions,
putting both renault and nissan resources under a single leader will give us
much greater efficiency and effectiveness in research and development;
higher efficiency and flexibility in industrial strategy and sourcing; and benefits
from common module or vehicle architecture at much higher volume.”
11NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 Andy palmer
Chief planning officer
EXECUTIVE PROFILE
Andy palmer has emerged as nissan’s customer champion.
the Chief planning officer (Cplo) who heads global sales
and marketing − along with product and corporate planning
− is working to strengthen nissan’s customer appeal around
the world.
“for every car we design we must have a specific customer target in mind,”
says cpLo. “We have to embed the customer in every project: in how we
position our brands, in how we use technology, in how we enhance our sales
experience and how we plan for the future.”
palmer’s relentless customer focus reflects two of the key priorities for
the power 88 mid-term strategic plan: to enhance both the brand and sales
power of nissan. there is a clear business imperative to his work. By
improving the company’s overall brand appeal, nissan aims to enhance
transaction prices, lower incentive spending and continue to build market
share.
in the past year, signs have begun to emerge that the strategy is
working. the company has sharply reduced marketing expenses, especially
the use of incentives, which has resulted in improved transaction pricing in the
key markets of the U.s. and europe.
this improvement follows the adoption last year of the “revenue control-
tower”, a tracking mechanism by which nissan uses mathematical formula to
adjust sales & marketing costs, mix and transaction prices.
now also be applied to nissan sales and marketing strategy.
this approach has led to five areas of brand and sales focus. first, the
company is using better market intelligence to track customer trends and
determine demand for different types of vehicles, ensuring that nissan offers
models relevant to each territory or product segment. Where nissan doesn’t
currently have technologies or product offerings that customers want, it will
either invest in creating them or turn to alliance partners—such as using
four-cylinder engines from its partners at Daimler, or collaborating with
mitsubishi on kei-cars (minicars in Japan).
secondly, the company is strengthening the brand marketing and
advertising campaigns for nissan, Datsun, and infiniti. in brand terms, nissan
is gaining credit for its more customer-focused approach, with a global
advertising campaign promising “innovation that excites.” this message is
resonating with customers, according to independent sources. nissan is
steadily climbing the interbrand global ranking for leading brands. it is
currently ranked 65th in the influential survey. Just four years ago, nissan was
not even among the top 100 brands.
“each improvement has a measurable effect on the bottom line,” says
palmer. palmer continues to push for more. He sees his role as part of “the
pivot” between product development and customer sales, he says monozukuri
theory − the ability to maximize efficiency in production processes − must
in the third area of strategic focus, palmer is placing further emphasis on
improving the customer experience in dealers. a consistent dealer network is
vital to maintaining positive sentiment about the nissan brand. nissan is
building what it calls a “prototype model dealership” in Japan, where the
12NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 EXECUTIVE PROFILE
company is piloting new customer sales techniques and data analysis that
could be used by different dealer group’s. the goal is for every dealership to
match the brand values and messaging portrayed in nissan’s advertising
campaigns. By doing so, dealers hope to secure better customer loyalty,
enhancing their transaction pricing and reducing per-vehicle incentives.
meet long-term changes in customer demand. pioneering technologies in
zero-emissions and autonomous drive systems are expected to help nissan
address a future marketplace in which customers expect greater automation,
improved connectivity, reduced environmental impact and different forms of
ownership.
achieving that goal also depends on a steady stream of new, award-
palmer cites the Leaf as an example of nissan innovating in advance of
winning products. this is the fourth priority area for palmer.
since the start of the power 88 mid-term plan, nissan has launched
more than two dozen new products, including vehicles such as the sentra,
note, DaYZ and altima that are core to nissan’s brand appeal. the next
generation of products, including the new rogue and Qashqai, have been
designed to reinforce the company’s brand power in markets such as north
america and Western europe, where they are highy accoladed. the product
offensive also reflects benefits from the longstanding renault-nissan
alliance, which enables both nissan and renault to achieve greater
economies of scale in product development, procurement and engineering.
the next-generation micra, for example, will be assembled at a renault plant
in northern france and will utilize components from the renault-nissan
common module family. to ensure such vehicles meet customer expectations,
palmer has created a team of “chief vehicles assessment specialists.”
Behaving like the most demanding customers, the team tests every new
product during its development process to ensure the new-generation cars
deliver on their promised performance. “they represent the most demanding
customers,” he adds. “it’s the next step to ensure we build our brand appeal.”
as part of this product planning strategy, nissan is continuing to press
ahead with innovations in electric vehicles, development of autonomous drive
models and other advanced technologies that will position the company to
consumer demand. He points out that global Leaf sales have exceeded the
most successful hybrid vehicles at the same point of its life cycle. He predicts
that electric vehicles will become the inevitable solution to the pollution
threats in the world’s growing number of mega-cities.
in the fifth and final focus area in his portfolio, palmer is concentrating
on developing infiniti as the first truly premium brand conceived and built in
asia, serving worldwide markets. palmer says the brand is emerging as a
viable competitor to european leaders in the luxury-premium segment with a
model range that will appeal to a wide range of customers.
Looking across the three brands, palmer acknowledges each is at a
different stage of development. He expects the core nissan brand to reach an
inflection point in 2014, harnessing its improving brand and sales power to lift
both volumes and margins. infiniti’s brand and product strategy − described as
“a 10-year journey” − is expected to deliver results towards the end of the
power 88 plan. Datsun, by comparison, is just starting to build a global
presence among the rising group of aspirational motorists in high growth
markets. “all this will not be achieved overnight, but we are making progress,”
palmer concludes. “my role is to extract the best out of the company with our
teams while championing the interests of the customer. it’s not just my
passion − it’s a passion of nissan.”
13NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 Joseph G. peter
Chief Financial officer
EXECUTIVE PROFILE
As nissan embarks on the second half of its power 88
business plan, Joseph peter remains focused on the key
financial metrics, cost discipline and free cash flow that is
central to the company’s mid-term strategy.
marking his fifth year as chief financial officer (cfo), Joseph peter says:
“We know what we need to do in terms of product, quality, revenue
management, and in the cost side of the business. our margin-objective is
within our line of sight, and we are moving forward.”
that forward momentum was reflected in the last fiscal year. on a pro-
forma basis, nissan reported consolidated net sales up 18.7% to 11.43 trillion
yen for the 12 months to march 31, 2014. operating profit increased by
15.7% to 605.7 billion yen, and net income rose 13.6% to 389 billion yen*.
auto business free cash flow was a positive 208.1 billion yen for the
fiscal period, contributing to a year-end net cash position of 1.13 trillion yen in
nissan’s automotive business. the cfo regards the generation of free cash
flow and the creation of a strong balance sheet as some of the highlights of
his tenure. since peter assumed the role, nissan’s credit rating has been
upgraded and the company has moved from a net debt to a strong net cash
position.
“as we began the power 88 plan, we were focused on solid free cash
flow,” peter recalls. “We had an objective to generate 1.5 trillion yen over the
period of the plan. over the first three years we are more than 50% there.”
it is a creditable performance given some of the headwinds that nissan
has faced since the start of the plan. “We started our power 88 mid-term plan
with the stress of natural disasters, first in Japan and then in thailand,” says
peter. “We were able to recover faster than others because of the teamwork
by nissan’s members across multiple disciplines.”
since then, the company has benefited from a correction in the value of
the yen, although peter maintains it remains overvalued compared to the
average historic exchange rate against the Us dollar. nissan, moreover, has
not enjoyed the same “bounce” from the yen correction as some other
Japanese carmakers.
peter argues that there are better indicators of business strength than
favorable currency movements. “When you look at the measure of out-
performance attributed to other companies, you need to be clear what is
driving that performance.
“at nissan our sales performance has exceeded that of our key
competitors in key markets around the world, particularly the Us and china.
“from a financial perspective, the impact of the yen-correction has been
less favorable for nissan than others. that is because we previously took
steps to realign our cost and revenue footprint. We have been shifting
production to important markets − it’s better in the long term to have more
products manufactured where they are sold.”
* since the beginning of fiscal 2013, nissan has reported figures calculated under the equity method
accounting for its joint venture with Dongfeng in china. although net income reporting remains
unchanged under this accounting method, the equity-accounting income statements no longer include
Dongfeng-nissan's results in revenues and operating profit. Under the equity accounting method,
nissan reported revenues up 20% to 10.48 trillion yen for the 12 months to march 31 2014, and
operating profit increased by a healthy 13.6% at 498.4 billion yen.
14NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 EXECUTIVE PROFILE
the plant investments associated with this strategy will enable nissan to
adjust capacity to local demand, particularly serving fast-growing emerging
markets.
peter explains: “in the second half of the power 88 plan, we will begin to
leverage these investments, which should close the gap in profit margins
against the competitor set.” a solid financial return on those new investments
is also expected to coincide with improved cost controls in mature markets
such as north america. the cfo admits: “We had some difficulties in 2012 in
the Us with regards to new vehicle launches and quality. so our first priority
was to reignite the Us market. We have done that, and we have grown at
two-to-three times the pace of some competitors. now we are venturing into a
strategic timeframe in which the ‘flywheel’ has been reset. the focus is now
on transforming our market momentum into improved business performance
through revenue-management and cost efficiency.”
as part of that exercise, nissan is paying particular attention to the total
delivered cost of its vehicles: seeking efficiencies that will enhance per-unit
margins even in a tough competitive market. alongside that initiative, nissan is
pursuing further synergies from its long-running alliance with renault of
france. Under a recently announced convergence plan, the renault-nissan
alliance now aims to lift annualized synergies to at least €4.3 billion by 2016.
this gives the cfo confidence that nissan can meet its 8% commitment
to a sustainable operating profit margin, calculated on the company’s pro-
forma consolidated earnings including contributions from its chinese joint
venture operations. nissan is also continuing to target 8% global market
share − a goal that peter describes as “the north star for us.” He adds: “When
we think about the action we’re taking on brand and sales power, and the
potential of the product portfolio, coupled with our leadership in electric
vehicles, expansion in emerging markets and adoption of new technologies
− then we believe the potential for 8% market share is there.”
He acknowledges that the company’s targets could be disrupted by
market volatility, as was evident in several emerging countries in the past
fiscal year, or policy changes such as Japan’s decision to increase its sales
tax. But the cfo is confident that such issues will not deflect nissan from its
strategic course.
“When we look at the Japanese market over the first couple of months
of the current fiscal year, we have seen some negative impact on unit sales.
But the amount of reduction is less than we anticipated.”
the modest impact of such moves, combined with improving revenue-
management, demand for new products and better cost controls, is expected
to contribute to net sales of 10.79 trillion yen for the current fiscal year. the
company has also predicted an operating profit of 535 billion yen –
representing a margin of 5% − based on a financial outlook for the 12
months to march 31, 2015 (calculated under the equity accounting method
for nissan’s chinese joint venture).
this forecast and further generation of automotive free cash flow has
enabled the company to increase its outlook for the fiscal 2014 full-year
dividend by 10% to 33 yen per share. over the balance of the power 88
mid-term plan, the company has also increased the minimum targeted pay out
ratio from 25% to 30% of net income.
after five years of managing nissan’s balance sheet, improving its
liquidity and enhancing financial controls, the cfo indicates that shareholders
should also share in the benefits. He concludes: “When we look at the
strength of the balance sheet and the cash flow we’ve generated in our
business over the course of the plan, we think that increasing the pay out ratio
is the right thing to do.”
15NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 trevor Mann
Chief performance officer
EXECUTIVE PROFILE
trevor Mann is the performance specialist at the heart of
nissan. After almost a quarter of a century working in key
operations around the company, the Chief performance
officer (Cpo) is utilizing that experience to drive a relentless
efficiency program in each of nissan’s six global regions.
“i’m the conduit to check that the nissan machine is operating to maximum
efficiency. each region must deliver on the strategy set at the center,” he says.
each month, mann visits two operating regions to check on performance.
the schedule means he tours the worldwide business every quarter. When
mann arrives − this week it might be the resende plant in Brazil, next week
canadian sales operations in toronto − there is usually something to fix. if the
problem is serious, he may bring his team of specialists, either from
headquarters or another part of the world, to ensure that each part of the
organization is working properly.
part chief engineer, part organizational motivator: mann relishes the
tension that his role creates. those tensions, which he insists are positive,
intensified last year when nissan replaced its far-flung three-region operating
structure with a six-region organization designed to impose greater
management focus on each market.
“When i am in the region i review, challenge and help manage the
performance of the whole business including sales and marketing functions
within the regions,” according to the cpo. “the leaders of the global functions
set the targets and strategic direction of our operations. But in the different
regions around the world, the execution of those functions and strategic
delivery is undertaken by our regional heads, whom i manage.”
the system is designed to ensure that nissan delivers on its targets in a
range of areas, from manufacturing efficiency to sales and marketing, and
from product launches to dealer relations, supplier arrangements, pricing and
quality controls.
Under the old structure, regions composed of disparate territories were
overseen by executives who had other prime responsibilities. management
resources may have been stretched too thin, leading to launch delays, quality
glitches, and insufficient cost control. sometimes, manageable issues became
serious problems.
mann vows to change that. as part of the reorganization announced in
november 2013, the cpo was entrusted with managing the new six-region
structure. reporting to him are six dedicated regional chairmen, each one
responsible for multiple functions in their geographies − spanning r&D, plant
efficiency, purchasing, logistics, sales and marketing, and brand development.
there lies the tension: for managers in some of these functions must also
satisfy the demands of executives such as chief competitive officer Hiroto
saikawa or chief planning officer andy palmer when it comes to pricing and
market share. “i’m the tension between the regions and the function,” says
mann. “it needs a coordinator, a disciplinarian who ensures that we
standardize best practice.”
16NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 EXECUTIVE PROFILE
He is paying close attention to a couple of regions currently: north
america and china. “if they sneeze, everybody catches a cold,” mann explains.
if north america accounts for almost a quarter of nissan’s total annual sales
volume “it needs a level of attention” that ensures the market delivers on its
potential. the same is true of china, which mann describes as the company’s
next most important market.
the cpo claims the challenge is clear-cut, although he admits the
management challenge is complex, reflecting the multi-function organization
and sheer range of markets to cover. “We all know what we’ve got to do. if you
look at the financial results we know where we are today. our operating
margin was 5.3% at year-end; we are targeting a sustainable 8% [operating
profit] margin by the end of the plan.”
according to the executive with performance in his job title, nissan has
to accelerate its performance in a range of areas. that will be achieved by
reducing the company’s total delivered cost per vehicle and improving sales
and marketing efficiencies. this means extractive efficiencies in every part of
the business before a vehicle reaches the showroom. efficiencies are being
pursued in purchasing, manufacturing, logistics and revenue-management
− among other areas.
in manufacturing, for example, mann has to ensure that new factories
such as resende and aguascalientes are operating efficiently. But he warns:
“We can’t run our business from inside the factories. We have to manage the
markets smartly, and launch good products with good brand power, and
efficient sales and marketing − and then we will have busy factories.”
mann says this formula, ensuring that different functions are
synchronized more effectively, “will build volumes and justify the investment
we’ve made in the factories.” He adds that the performance program at nissan
extends far beyond Monozukuri − the art of manufacturing efficiency. “i cut
across all disciplines. it is part of a creative tension throughout the business
and its region, which ensures that we are striving always for greater
efficiency.”
nissan is already benefiting from the additional scrutiny of its different
group functions by the performance−team led by the cpo. this is ensuring,
for example, that the roll out of Datsun is maximizing the brand’s potential in
emerging markets.
mann feels the organization is making progress. “We are doing a good
job but we’ve got to question the whole time exactly what is being done
throughout the company - and to what effect,” he adds. “We must look for
options; we must identify risks and deal with them.”
at an internal meeting in may 2014, the executive management at
nissan assessed the level of risk in the organization and whether it was
performing against expectations. the executive group reaffirmed its
commitments to the power 88 mid-term strategic plan, reflecting the
management’s confidence in the latest performance measures.
in pursuit of those commitments, mann will this year continue travelling
across the organization: questioning, diagnosing, suggesting remedies. “i go
through all of the business functions on each trip. We focus on whether we
are achieving our cost-reduction targets, our quality targets, our market and
segment share and managing all this within our expected selling expenses.
"We ask each function whether they are performing to their potential. We
challenge the regions, and we challenge the functions to ensure we deliver on
the plan.
“We are now entering the second half of power 88, and there are a
number of hotspots that we must focus on such as asean, china and
the Us.
“But the opportunities far outweigh the risks,” says the cpo. “We have
got a plan to deliver. it’s my job to execute that plan to hold the organization to
account. it’s exciting. i’m not daunted, i’m energized.”
17NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 tHe MID-teRM plAn “nISSAn poWeR 88”
NISSAN POWER 88
SIX StRAteGIeS unDeR nISSAn poWeR 88
1
2
3
4
Strengthening
brand power
enhancing
sales power
to strengthen nissan’s brand power, we will expand our strength in engineering
and production to the sales, marketing and ownership experience. We will raise
the level of interaction with our customers to create a world-class standard of
service that will build lasting relationships with every nissan car owner. We
recognize that having a stronger brand will help close the gap with our top
competitors in every measurable area – from revenue generation to overall
opinion and purchase intention.
sales power in the mid-term plan refers to fully grasping the needs of customers
in each market and drastically raising sales volume and market share. in
emerging markets, we will focus on building a robust dealer network with market
positioning and staffing optimized to meet the needs of local nissan customers.
in mature markets, where our dealer network is already established, we will take a
strategic approach to improve customer loyalty and improve sales efficiency by
increasing sales volume per outlet.
enhancing quality
nissan aims to make steady progress in improving product quality. During nissan
power 88, our aim is to raise nissan into the top group of global automakers in
product quality and elevate infiniti to leadership status among peer luxury
products.
Zero-emission
leadership
nissan has taken the lead as the all-time volume leader in dedicated electric
vehicle sales. nissan’s eV lineup will include a light commercial vehicle and an
all-electric premium car, to be launched by infiniti in the near future. together
with our alliance partner renault, we intend to put 1.5 million eVs on roads
worldwide by 2016. in addition, nissan continues to take a leadership role in
every aspect from the development of batteries, chargers and vehicle lineup to
electric grid studies, battery recycling and the use of batteries for energy storage,
so that we will contribute to the establishment of sustainable mobility.
regarding the 8% market share objective under nissan p ower 88, we estimate
that 35% of the growth in volume will come from mature markets and 65% will
come from emerging markets. We will achieve this through a steady tempo of new
product launches averaging every six weeks, a continued focus on growth
markets and the expansion of our infiniti and light commercial vehicle businesses.
investments in manufacturing capacity expansion, particularly in china, north
america, Brazil, russia and india, will enable us to increase sales volume.
We have been successful in reducing costs by 5% annually, due mainly to our
cross-functional monozukuri activities involving our supplier base. as our
production footprint is increasing globally, we will maintain this pace by
enhancing and deepening these activities in every nissan production base across
the regions. moreover, evaluating not only purchasing costs but also logistics and
in-house costs, we have set an objective to reduce total costs by 5% each year.
nissan is operating its business based on the mid-term plan, nissan power
88 for the fiscal years 2011 to 2016. “power” derives its significance from
the strengths and efforts we will apply to our brands and sales. our
commitment is to renew our focus on the overall customer experience,
elevating nissan’s brand power and ensuring quality excellence for every
person who buys a nissan car. “88” denotes the measurable rewards from
achieving our plan. We aim to achieve a global market share of 8% from
5.8% in 2010, and we aim to increase our corporate operating profit to a
sustainable 8% from 6.1% in 2010.
nissan is implementing six strategies under nissan power 88:
5 Business expansion
6
Cost leadership
website
click here for more
information on nissan
power 88.
together with a stronger brand, investments in products, technologies and global capacity, we aim
to achieve nissan power 88 and grow further.
18NISSAN MOTOR CORPORATION ANNuAl RePORT 2014 19
ZeRo–eMISSIon leADeRSHIp
Here is the latest information on the company’s activities
in the zero-emission field.
NISSAN LEAF GLoBAL SALES SuRPASS 100,000 uNITS
the 100,000th all-electric nissan Leaf was bought by a customer in the United Kingdom. the nissan Leaf,
the world's first mass-produced zero emissions vehicle, remains the best-selling eV in history, with a 45%
market share. since its launch in December 2010 nissan has seen the pace of sales increase consistently, and
2013 was a record year. the Leaf is now available to customers in 35 countries on four continents. in norway,
the nissan Leaf topped sales charts, out-selling conventional gasoline powered vehicles in october 2013.
sales of the nissan Leaf in Japan passed the 30,000 unit milestone in october 2013.
As the industry leader in zero-emission mobility, nissan is committed to the penetration of electric vehicles (eVs) in the market.
all-electric nissan Leaf
NISSAN MOTOR CORPORATION ANNuAl RePORT 2014PERFORMANCE 20
ToyoTA, NISSAN, hoNDA AND MITSuBIShI To PRoVIDE FINANCIAL ASSISTANCE FoR
ELECTRIC VEhICLE ChARGING INFRASTRuCTuRE IN JAPAN
toyota motor corporation, nissan motor co., Ltd., Honda motor co., Ltd., and mitsubishi motors
corporation jointly announced their agreement to work together to promote the installation of
chargers for electric-powered vehicles (pHVs, pHeVs, eVs) and build a charging network service that
offers more convenience to drivers in Japan. they also established a new company, nippon charge
service, LLc.
this company has the following goals:
1. promote installation of chargers in Japan
2. promote charger installation by temporarily bearing part of the installation and maintenance costs
3. Build a charging infrastructure network which enables customers to use their pHVs, pHeVs and eVs more
conveniently
4. Work with government agencies and local governments
NISSAN AND BhuTAN PARTNER oN BREAkThRouGh NATIoNAL EV STRATEGy
nissan has pledged its support for the Kingdom of Bhutan's transition to an electric vehicle fleet.
nissan has entered into an agreement with the royal government of Bhutan with the shared goal of
achieving the nation's eco-friendly vision for the future. Bhutan's government is targeting eVs as a key
strategy to achieve its goal of becoming a zero emissions nation. as a first step in the cooperation,
nissan will deliver nissan Leafs for use in the government fleet, and as taxis, as well as demonstration
units for the national rollout of eVs. Quick chargers will also be supplied to implement the government's
plan for infrastructure covering the entire Himalayan nation. feasibility studies for further technical
cooperation are included in the details of the agreements.
NISSAN LEAFS CAN NoW PoWER ThE oFFICE, AS WELL AS ThE hoME
“Vehicle-to-Building" allows up to six nissan Leafs to be
connected to a building's power distribution board. charging is
phased during the day so at peak hours, when electricity is
most expensive, the building draws power from the cars. When
electricity is cheaper it flows the other way. the system
ensures the nissan Leafs are fully charged by the end of the
working day for their owners to drive home.
“Vehicle-to-Building" has been in use at the nissan
advanced technology center in atsugi city, Japan, since July.
NISSAN AND CITy oF yokohAMA LAuNCh JAPAN’S FIRST-EVER
CAR ShARING PRoGRAM WITh uLTRA-CoMPACT EVs
choimobi Yokohama is a combined effort between nissan motor co., Ltd. and
the city of Yokohama as part of the Yokohama mobility project Zero
program (YmpZ). the YmpZ program is aimed at increasing low-emission
transportation options for residents of the city. the choimobi Yokohama plan
is designed to be a one-way car sharing service that enables eVs to be rented
from and returned to any of 45 car pickup/return stations that will be located
in the downtown core in Yokohama.
NISSAN INTRoDuCES ITS FIRST ALL-ELECTRIC CoMMERCIAL VEhICLE “e-NV200”
nssan's first all-electric, zero-emissions commercial vehicle, the e-nV200, will go on sale in october 2014
at nissan dealers throughout Japan.
the e-nV200 is nissan’s second mass-market, all-electric model available globally, following the
nissan Leaf, which has now sold more than 100,000 (as of Jan.2014) units worldwide. compared to
commercial vehicles that use internal combustion engines, the e-nV200 reduces operating costs and
contributes to improving the company’s environmental image thanks
to the vehicle’s zero exhaust emissions as well as a reduction in noise
pollution. the nissan Leaf is fun to drive, offering smooth, strong
acceleration, great handling and a quiet interior with no engine noise.
With the inclusion of a hydraulic brake system, the vehicle’s
regenerative braking can work more effectively, enabling a driving
range of 185 to 190 km on a full charge (on Jc08 mode).
NISSAN MOTOR CORPORATION ANNuAl RePORT 2014PERFORMANCE 21
nISSAn’S teCHnoloGY DeVelopMent AnD neW teCHnoloGIeS In FISCAl 2014
AutonoMouS DRIVInG teCHnoloGY
overview of Nissan’s Autonomous Drive
nissan motor co., Ltd. recently announced that the company will be ready with multiple, commercially-
viable autonomous Drive vehicles by 2020.
nissan's autonomous driving technology development is an extension of its safety shield philosophy,
which promotes the creation of a virtual 360-degree sensing capability around a vehicle to help detect
risks, offer warnings to the driver and takes action if necessary.
nissan’s prototype autonomous Drive vehicles equipped with laser scanners and five cameras
continually monitor their surroundings in every direction. if they come close to other vehicles or other
objects, artificial intelligence selects the appropriate action based on the information stored in its
knowledge database. the goal is development of an autonomous Drive vehicle that can correctly
assess situations, make decisions and drive safely even in complex traffic environments, such as at
crossroads with no traffic lights or when passing parked vehicles.
a revolutionary concept like autonomous drive will have implications throughout the design and
construction of cars. for example, collision-avoidance by machines with the capability to react more
rapidly and with more complex movements than a human driver will place new demands on the chassis
and traction control. nissan is leveraging 80 years of research and development expertise to create a
complete solution for autonomous drive.
Image of Autonomous Drive
NISSAN MOTOR CORPORATION ANNuAl RePORT 2014PERFORMANCE Various scenes of Autonomous driving
The following are a few choice examples of how these technologies are used.
22
Around View Monitor
this technology offers drivers a virtual bird’s-eye view around their vehicle, enhancing visibility and
making parking easier. many of our models already feature this technology, and we plan to deploy it
in more models in the future.
Forward Emergency Braking
this technology is able to bring a vehicle to a halt when it senses a potential collision with a
vehicle ahead. Drivers have given us positive feedback about the technology , and we plan to
continue to expand our offerings of this feature.
Intelligent Parking Assist
this is a new advanced technology for nissan. the technology makes it easier for drivers to park
their car, even those with little experience, by helping them park their car in garages and when
parallel parking through automated assistive steering.
Smart Rearview Mirror
announced at the geneva motor show in march 2014, the smart
rearview mirror is a world-first technology that allows drivers to
switch between a normal rearview mirror and an LcD display with
rear-facing camera. the driver is presented with a clear view behind
their vehicle under various driving conditions, making driving a more
pleasurable experience. the smart rearview mirror gives the driver a
broader and unobstructed view behind the vehicle.
neW teCHnoloGIeS In FISCAl 2014
In fiscal 2014, Nissan brought to market five new technologies, including the FF mid-size hybrid
system and the advanced driving assistance display.
Road test of an Autonomous Drive vehicle
nissan conducted the first public road test of an autonomous Drive vehicle on the sagami expressway in
Kanagawa (southwest of tokyo) with the support of Kanagawa prefectural authorities.
the nissan Leaf used for this test drive was the first vehicle equipped with autonomous driving
technologies to be granted a license plate in Japan (september 2013). autonomous driving technologies
detect road and traffic conditions as well as control handling and braking. from entrance to exit, the
prototype vehicle is fully automatic on the highway.
in order to realize an autonomous driving system and provide additional benefit to our customers,
nissan continues to develop technologies intended to enhance safety and reliability. We plan to continue
to incorporate a variety of core technologies related to automated driving, including camera recognition
technology and control automation technology, in our mass-produced models.
NISSAN MOTOR CORPORATION ANNuAl RePORT 2014PERFORMANCE FISCAl 2013 SAleS peRFoRMAnCe
fiscal 2013 sales results came to 5,188,000 units, up 5.6% year-on-year. overall market share was
6.2%, equal to fiscal 2012.
Global Retail Sales Volume / Market Share
(Units: thousands)
8,000
6,000
4,000
2,000
0
5.6
5.4
5.4
5.5
5.5
3,569
3,483
3,770
3,411
3,515
5.8
4,185
6.4
6.2
4,845
4,914
6.2
5,188
6.7
5,650
2005
2006
2007
2008
2009
2010
2011
2012
2013
(forecast)
2014
global retail sales volume (left)
market share (right)
(%)
8.0
6.0
4.0
2.0
0
(fY)
Japan
in Japan, total industry volumes rose by 9.2% to 5.7 million units. nissan out-performed the market with
unit sales up 11.1% to 719,000, representing a market share of 12.6%. this improvement was driven by
strong sales of our DaYZ series, as well as strong demand for our first cmf model and the new X-trail. it
is important to note that the sales volume increase, particularly in the fourth quarter, was impacted by
Japanese consumers making purchases prior to the consumption tax hike.
23
China
in china, nissan out-performed overall market growth. the total industry in china was up 14.0% to 20.75
million units, while nissan sales increased 17.2% to 1.27 million units. although our performance was
impacted by the islands dispute in the first half, demand has since improved. the Qashqai and the all-new
sylphy, along with new models from Venucia and infiniti, contributed to this improvement.
Retail Sales in China
(Units: thousands)
（1,182）
1,080
1,266
+17.2%
1,430*
+17.6%
1,500
1,200
900
600
300
0
2012
2013
(forecast)
2014
(fY)
* after adjustment of cV spin off
( ): Before adjustment of cV spin off
North America
in north america, nissan achieved significant sales growth. the total industry in the U.s. was up 6.4% at
15.65 million units, while nissan sales volume increased by 13.0% to 1.29 million units amid strong
demand for the new rogue and the altima.
in canada, nissan outperformed the market as unit sales jumped 20.9% to 96,000 units, compared
with the industry which was up 4.6% at 1.75 million units. in canada, the new rogue added to the sales
momentum.
in mexico, nissan has maintained its number one position with a market share of 24.9% and unit
sales of 265,000. nissan accounts for five of the top ten models in mexico and ranks first in customer
satisfaction.
Retail Sales in Japan
(Units: thousands)
Retail Sales in the United States
1,500
1,200
900
600
300
0
647
719
+11.1%
640
-11.0%
2012
2013
(forecast)
2014
(fY)
(Units: thousands)
1,500
1,200
900
600
300
0
1,285
+13.0%
1,370
+6.6%
1,138
2012
2013
(forecast)
2014
(fY)
X-TrailRogueQashqaiNISSAN MOTOR CORPORATION ANNuAl RePORT 2014PERFORMANCE 24
FISCAl 2014 SAleS outlooK
Europe
in europe, including russia, nissan’s sales rose 2.4% to 676,000 units, compared with a 1.8% rise in the
overall market. nissan’s market share was steady at 3.9%.
for fiscal 2014, nissan anticipates total industry volumes will rise by 1.6% to 84.42 million units. in that
period, we expect nissan to improve significantly with retail volumes reaching 5.65 million units. this
would equate to a record global market share of 6.7%.
Retail Sales in Europe
(Units: thousands)
1,500
1,200
900
600
300
0
660
676
+2.4%
780
+15.4%
2012
2013
(forecast)
2014
(fY)
in Japan, we expect continued pressure on consumers due to the recent consumption tax increase.
this will be more than offset by sales growth in china, north america and in europe. We also forecast
improvement in other markets, which were depressed through all of fiscal 2013.
We will launch 10 new vehicles over the coming 12 months. these include the new murano in the
U.s., a number of all-new Datsun vehicles in india, russia, indonesia and south africa and the new zero-
emissions e-nV200 in Japan and europe. the ongoing product offensive will also feature an all-new
global pick-up truck np300 navara and the long-wheel-base variants of the infiniti Q50 and QX50 in
china.
(all figures are based on forecasts as of may 12, 2014.)
other markets
our sales in other markets declined by 8.5% to 879,000 units. in asia and oceania sales declined 17.8%,
to 363,000 units. Latin america fell 16.1% to 186,000 units. these reductions were partly offset by a
22.5% increase in the middle east to 226,000 units.
nevertheless, nissan enjoyed the first signs of success in other emerging markets. in india, we
began selling the all-new Datsun go, and consumers are reacting positively to the new terrano.
Retail Sales in Other Markets
(Units: thousands)
1,500
1,200
900
600
300
0
959
879
-8.5%
1,040
+18.4%
2012
2013
(forecast)
2014
(fY)
Fiscal 2014 Sales Outlook
(Units: thousands)
6,000
5,000
4,000
3,000
2,000
1,000
0
5,650
+8.9%
640
Japan
-11.0%
1,430
china
+17.6%*
1,760
(1,370)
north america
+6.8%
(U.s.+6.6%)
780
europe
+15.4%
1,040
other markets
+18.4%
(forecast)
2014
(fY)
5,188
719
1,266
1,648
(1,285)
676
879
2013
* after adjustment of cV spin off
QashqaiDatsun GONISSAN MOTOR CORPORATION ANNuAl RePORT 2014PERFORMANCE FISCAl 2013 FInAnCIAl ReVIeW
FISCAl 2013 FInAnCIAl peRFoRMAnCe
Net Sales (Management pro forma basis*)
for fiscal 2013, consolidated net sales
increased 18.7%, to 11.43 trillion yen.
Net Sales
(Billions of yen)
12,000.0
10,482.5
11,434.8
10,790.0
9,409.0
9,629.6
8,773.1
9,000.0
7,517.3
6,000.0
3,000.0
0
2009
2010
2011
2012
2013
(forecast)
2014
(fY)
management pro forma basis*
china JV equity basis
operating Profit (Management pro forma basis*)
consolidated operating profit totaled 605.7 billion yen, an increase of 15.7% from previous year. in
comparison to previous year’s consolidated operating profit, the variance was due to the following factors:
25
Impact on Operating Profit (Management pro forma basis*)
(Billions of yen)
–266.5
+70.4
+202.6
523.5
+247.6
–24.2
–36.8
–72.1
–38.8
605.7
fY12
o.p.
foreX
purch. cost
reduction
(including raw
material)
Volume/
mix
selling exp. /
product
enrichment
r&D
exp.
mfg
exp.
Warranty &
recall exp.
other
items
fY13
o.p.
Net income (Management pro forma basis*)
net non-operating income amounted to 53.3 billion yen for the current fiscal year, decreasing by
59.1 billion yen due to a 32.4 billion yen decrease in fX loss and 30.0 billion yen decrease in profit
loss under the equity method.
net special gain was 26.0 billion yen, an increase of 38.6 billion yen. this was primarily
attributable to a 16.3 billion yen gain on sale of the cV business and a 12.2 billion yen gain on
contribution of securities to retirement benefit trust.
l the 247.6 billion yen foreign exchange impact reflects mainly the correction of the yen against the U.s.
income taxes for the current fiscal year increased by 3.5 billion yen from the previous fiscal
dollar.
l purchasing cost reduction efforts, including raw
materials, resulted in savings of 202.6 billion yen.
l Volume and mix produced a positive impact of
70.4 billion yen
Operating Profit
(Billions of yen)
l the increase in selling expenses, including
product enrichment costs, resulted in a 266.5
billion yen negative movement.
800.0
600.0
l r&D expenses increased by 24.2 billion yen.
l manufacturing expenses increased by 36.8
400.0
311.6
537.5
545.8 523.5
605.7
535.0
498.4
billion yen.
l Warranty and recall expenses increased by 72.1
billion yen.
l other items including remarketing had a negative
impact of 38.8 billion yen.
200.0
0
2009
2010
2011
2012
2013
(forecast)
2014
(fY)
management pro forma basis*
china JV equity basis
year to 149.8 billion yen.
consolidated net income increased by 46.6 billion yen from 342.4 billion yen for the previous
fiscal year to 389.0 billion yen for the current fiscal year.
Net income
(Billions of yen)
600.0
450.0
300.0
150.0
0
389.0
405.0
319.2
341.4 342.4
42.4
2009
2010
2011
2012
2013
(forecast)
2014
(fY)
management pro forma basis*
china JV equity basis
* Based on continuation of proportionate consolidation of china JV
NISSAN MOTOR CORPORATION ANNuAl RePORT 2014PERFORMANCE
26
FInAnCIAl poSItIon
Balance sheet (China JV Equity basis)
total assets have increased by 18.2% to 14,703.4 billion yen compared to march 31, 2013.
current assets have increased by 19.3% to 8,609.3 billion yen compared to march 31, 2013.
this was mainly attributable to an increase in sales finance receivables by 871.6 billion yen.
fixed assets have increased by 16.6% to 6,094.1 billion yen compared to march 31, 2013.
this was mainly attributable to an increase in machinery, equipment and vehicles, net by 393.8
billion yen and an increase in investment securities by 212.7 billion yen.
Long-term credit rating
nissan’s long-term credit rating with r&i is a+ with a stable outlook. s&p’s long-term credit rating for
nissan is BBB+ with a stable outlook. nissan’s credit rating with moody’s is a3 with a stable outlook.
Corporate Ratings
current liabilities have increased by 22.0% to 5,187.2 billion yen compared to march 31, 2013.
aa3
this was mainly due to increase in note payable and account payable by 343.3 billion yen and
short-term borrowings by 186.8 billion yen.
Long-term liabilities have increased by 16.7% to 4,844.6 billion yen compared to march 31,
2013. this was mainly due to increase in Long-term borrowings by 330.2 billion yen and bonds by
247.1 billion yen.
net assets have increased by 15.7% to 4,671.5 billion yen compared to 4,036.0 billion yen as
of march 31, 2013. this was mainly due to net income of 389.0 billion yen and a decrease in
translation adjustments by 310.9 billion yen.
Free cash flow and net cash (auto business) (Management pro forma basis*)
for fiscal 2013, nissan achieved a positive free cash flow of 208.1 billion yen. at the end of fiscal
2013, our net automotive cash improved from the previous fiscal year to 1,133.7 billion yen.
We continue to maintain a close focus on our inventory of new vehicles. inventory stood at
970,000 units at the end of fiscal 2013. the company continues to manage inventory carefully, in
order to limit its impact on free cash flow.
* Based on continuation of proportionate consolidation of china JV
R&I
S&p
Moody’s
a1
a2
a3
Baa1
Baa2
Baa3
Ba1
10/03 4/04 10/04 4/05 10/05
4/06 10/06 4/07 10/07 4/08 10/08 4/09 10/09 4/10 10/10 4/11
7/11
7/12
1/13
aa–
a+
a
a–
BBB+
BBB
BBB–
BB+
NISSAN MOTOR CORPORATION ANNuAl RePORT 2014PERFORMANCE 27
Dividend
nissan’s strategic actions reflect not only its long-term vision as a global company to create sustainable
value but also the company’s commitment to maximizing total shareholder returns.
We paid year-end cash dividends of 15 yen per share for fiscal 2013. as a result, total dividend
payment for fiscal 2013, combined with the 15 yen dividend for the interim period, was 30 yen per share.
the dividend payment plan for fiscal year 2014 is to be 33 yen per share, considering the business
condition, risks and opportunities for the year.
Dividend
(Dividend per share, in yen)
40
30
20
10
0
33
30
25
20
10
0
2009
2010
2011
2012
2013
(outlook)
2014
(fY)
Sales finance (China JV Equity basis)
Due to the increase in retail sales, total financial assets of the sales finance segment increased by 21.7%
to 7,682.1 billion yen from 6,310.8 billion yen in fiscal 2013. the sales finance segment generated 164.7
billion yen in operating profits in fiscal 2013 from 142.3 billion yen in fiscal 2012.
Investment policy (China JV Equity basis)
capital expenditures totaled 536.3 billion yen, which was 5.1% of net sales. the company used capital
expenditures in order to ensure nissan’s future competitiveness.
r&D expenditures totaled 500.6 billion yen. these funds were used to develop new technologies
and products. one of the company’s strengths is its extensive collaboration and development structure
with renault’s r&D team, resulting from the alliance.
nissan plans more than 90 new advanced technologies, averaging 15 per year during our mid-term
plan by 2016.
R&D Expenditures
(Billions of yen)
600
450
300
150
0
385.5
5.1%
399.3
428.0
4.6%
4.5%
469.9
4.9%
500.6
500.0
4.8%
4.6%
2009
2010
2011
2012
2013
(forecast)
2014
(fY)
r&D expenditures (management pro forma basis*)
r&D expenditures (china JV equity basis)
% of net sales (management pro forma basis*)
% of net sales (china JV equity basis)
* Based on continuation of proportionate consolidation of china JV
NISSAN MOTOR CORPORATION ANNuAl RePORT 2014PERFORMANCE 28
operating profit variance analysis
l a negative foreign exchange movement of 55 billion yen;
l an improvement in sales and marketing of 25 billion yen;
l an 85 billion yen improvement in monozukuri;
l and an increase in g&a and other costs of 18.4 billion yen.
Under the forecast of consolidated operating results for fiscal 2014, the consolidation method of
Dongfeng motor co., Ltd. is changed from a proportionate consolidation to the equity method in
comparison with the results until fiscal 2012 by the adoption of ifrs 11. this change has no impact on
net income though there are effects on net sales, operating income and ordinary income.
(all figures for fiscal 2014 are forecasts, as of may 12, 2014.)
FISCAl 2014 outlooK (CHInA JV eQuItY BASIS)
in our outlook for fiscal 2014, we expect our global sales to reach 5.65 million units, an increase of
8.9%.
With a total industry volume assumption of 84.42 million units, a 1.6 % increase year on year, our
global market share is expected to grow from 6.2% to 6.7%.
in consequence of our plan, financial forecast is as follows. We have used a foreign exchange rate
assumption of 100 yen to the dollar and 140 yen to the euro:
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