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Nissan Annual Report 2003
2
LETTER FROM THE PRESIDENT AND CEO
Fiscal year 2003 was a good year for Nissan.
In the second year of our NISSAN 180 business plan,
our company delivered consistent, solid results.
The pages that follow give the details, but three key
numbers summarize our progress.
The first number: 3.057 million global sales. Nissan’s
sales increased 10.4 percent despite continued
sluggishness in the world’s major economies and despite
our refusal to be in the forefront of the aggressive incentive
campaigns that permeate our global industry. The volume
growth we planned for and deserved was realized.
The second number: 11.1 percent operating profit
margin. With operating profits of ¥825 billion—the highest
level of operating profit in our company history—Nissan maintained the top
operating margin among global auto makers.
The third number, and perhaps the most important: 21.3 percent return on
invested capital. This level of return underscores our ongoing, disciplined
approach to managing our business: On every investment we make, we expect
significant returns.
These three numbers—3.057 million, 11.1 percent, 21.3 percent—present a
snapshot of fiscal year 2003. At the midpoint year of NISSAN 180, profitability is
up, debt management has been replaced by cash management, and growth is
occurring. We have already met two of the three commitments of NISSAN 180,
achieving an eight percent operating profit margin and zero debt. The remaining
task of selling an additional one million units will require our total focus, but we are
confident we will do it.
The facts show that 2003 was a year of real value creation. Behind the
numbers were the day-to-day actions and contributions of all the talented Nissan
men and women around the globe. Their efforts took shape in many noteworthy
accomplishments.
For one, ten all-new models were launched in markets around the world.
We entered some new segments, such as mini-commercial vehicles in Japan, and
created a stir in others, with our entry into full-size segments in the United States.
Innovative designs continued to reflect the spirit of Nissan, from the thoroughly
modern Cube Cubic to the bold Titan truck. We offered our customers
competitive products and services to meet their needs and delight their senses,
and sales volumes were up in every region as a result.
In 2003, we celebrated the startup of the Canton Plant in the United States.
With unanimous, cross-functional teamwork, our employees and supplier partners
rose to meet the extreme challenge of starting production at a new plant and
launching five new models in eight months’ time. The fighting spirit shown by our