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Nissan: Enriching People’s Lives
Annual Re
Year Ended March 31, 2006

Table of contents

  • Page 1
    Annual Re Year Ended March 31, 2006 Nissan: Enriching People's Lives

  • Page 2
    ...customers, shareholders, employees, dealers, suppliers, as well as the communities where we work and operate. GROWTH MOMENTUM This annual report presents financial results for the fiscal period ending March 31, 2006. The report also provides shareholders with insights into Nissan's management team...

  • Page 3
    ... number of shares of common stock outstanding during each year. Figures for net income per share are in exact yen and U.S. dollars. Number of shares outstanding as of March 31, 2006: 4,520,715,112. 3. Cash dividends during the full year by subsidiary companies to non-Nissan minority shareholders...

  • Page 4
    ... performance creates an objective basis for a pay-for-performance compensation system. Our compensation system has played a key role in cultivating the value creation mindset in our company. Our stock option plan is the best example. Employees must meet specific value-based 2 Nissan Annual Report...

  • Page 5
    .... The role of investor communications is to ensure that our market value tracks our intrinsic value. The benefit of being fairly valued is that we can learn from market signals. Since we believe that our share price is the most objective measure of our future performance, we use that feedback at the...

  • Page 6
    ... function of a public company. We will continue to pursue this objective based on our VBM: maximizing our intrinsic value and managing market expectations. Shareholder value creation is a neverending quest at Nissan. Carlos Ghosn President and Chief Executive Officer 4 Nissan Annual Report 2005

  • Page 7
    ... solutions often disappear. For example, I continually monitor our KPIs-key performance indicators-in our monthly Value-Up status report. These include external and internal KPIs, and are closely linked to our Value-Up objectives and commitments. Another variable is our return on invested capital...

  • Page 8
    ... asset management business and the dealer business. We put all assets-land, buildings and showrooms-into one new company called Nissan Network Holdings (NNH). We will close some unprofitable outlets, but NNH can invest if we consider one salvageable. My three strategies for improving profitability...

  • Page 9
    ...Saikawa Mitsuhiko Yamashita Carlos Tavares Alain-Pierre Raynaud Board Members Tadao Takahashi Hiroto Saikawa Mitsuhiko Yamashita Carlos Tavares Shemaya Lévy Patrick Pélata Auditors Hisayoshi Kojima Takeo Otsubo Toshiyuki Nakamura Haruo Murakami (As of June 27, 2006) Nissan Annual Report 2005 7

  • Page 10
    ...and Nissan dealer networks in Central Europe. The Alliance partners invested â,¬13 million in the facility, which uses a new IT system Renault and Nissan developed together. Handling parts at a single, centrally located site should bring significant cost reductions and generate synergies in supplies...

  • Page 11
    ... thinking. In the process, we often gain solutions that stretch the organization in new and profitable directions. Open, constructive exchanges are at the heart of effective two-way communications. The way we relate to others, both inside and outside Nissan, is based on mutual trust and respect. And...

  • Page 12
    ...MARKET WITH INFINITI. AS WE MAKE LIGHT COMMERCIAL VEHICLES A SOLID GLOBAL PILLAR OF OUR BUSINESS. AS WE SOURCE PARTS AND SERVICES FROM COUNTRIES SUCH AS CHINA, INDIA AND THAILAND, AND RAPIDLY LOCALIZE PRODUCTION THERE AS WELL. PROFITABLE, WELL-TUNED, COST-EFFECTIVE PERFORMANCE. Nissan Annual Report...

  • Page 13
    PERFORMANCE Nissan Annual Report 2005 11

  • Page 14
    ... profit margin among global automakers for each of the three years of the plan. Volume: Nissan will achieve global sales of 4.2 million units in fiscal 2008. ROIC: Nissan will achieve a 20 percent or higher return on invested capital on average over the course of the plan. 12 Nissan Annual Report...

  • Page 15
    ... 2,771 2,597 THREE CRITICAL COMMITMENTS Consolidated Operating Profit Margin COP margin (%) Nissan Value-Up Sales Volume (Units: 1000s) Return on Invested Capital (auto) (%) 11.1% 10.8% 10.0% 9.2% 7.9% Top level operating profit margin among global automakers Commitment 4,200 ROIC average of...

  • Page 16
    ...predict our global sales volume will reach 3,730,000 units, 4.5 percent higher than 2005. Our sales objectives by region Japan: 846,000 units, flat versus last year U.S.: 1,100,000 units, up 2.3 percent Europe: 561,000 units, up 3.7 percent from fiscal 2005 General Overseas Markets: 1,223,000 units...

  • Page 17
    ...Markets North America Sentra Altima Infiniti G35 Versa (Tiida in Mexico) Global Retail Sales Volume (Units: 1000s) 3,730 +4.5% Retail Sales by Region (Units: 1000s) Japan 846 +0.5% U.S. 1,100 +2.3% Europe... 541 544 542 1,111 983 822 *Including Mexico and Canada Nissan Annual Report 2005 15

  • Page 18
    ... 6,000 units to 148,000. Two-Build a global presence in the light commercial vehicle (LCV) market. Our LCV business is already close to meeting its Value-Up commitment of doubling operating profit and a 40 percent rise in volume. We are also launching LCV dealerships that provide customized service...

  • Page 19
    ... research-phoning customers to see how they feel about the car, asking what we can do for them. The local team cannot just look at surveys, make a detailed analysis, propose countermeasures, implement the plan, and then wait another six months for a new survey. When we launch Infiniti in new markets...

  • Page 20
    ... a China launch is in the works as well. We will be entering Western Europe in 2008, with an expanded lineup and a new V6 diesel, which the European market wants and expects. By doing this, we will bring more profit to Nissan, address new customers in the luxury market, and follow up on our present...

  • Page 21
    ... do extensive online research before talking to us. They want their vehicles serviced outside of normal working hours. You can see this behavior more or Activities by Regions 7.7% 8.0% 10 8 Europe Specialized LCV dealerships to be introduced North America Japan Specialized LCV dealerships being...

  • Page 22
    ... markets: Europe, for instance, will develop a similar concept by adapting the Pro Shop model to specific European customer needs. We see two slightly different customer profiles in Europe, truck buyers and van/pickup buyers. We're working on adapting the Pro Shop model appropriately. LCV customers...

  • Page 23
    ... COUNTRIES 3 HIROTO SAIKAWA Executive Vice President PERFORMANCE Pursuing New Sourcing Frontiers and Partnerships Nissan must be a global cost leader. The mission of purchasing is to develop effective new supply sources for bought-out parts, machinery and equipment, vendor tooling, and services...

  • Page 24
    ... from local suppliers to both meet the surge in demand and keep costs low. Russia Eastern Europe 2009: Start of new manufacturing plant in St. Petersburg Ukraine April 2005: new sales company Gulf Countries China March 2006: New PV technical center 2006: Production capacity expansion Egypt...

  • Page 25
    PERFORMANCE GEOGRAPHIC EXPANSION THAILAND showrooms and establishing standards for the showroom and after-sales service. Through market representation activities, we discovered the need to find both new dealer candidates and current dealers willing to make a bigger investment. By the end of 2005, ...

  • Page 26
    ..., we were the only major car manufacturer in Thailand without a captive finance company. One problem that created was a loss of brand continuity. A customer typically starts the purchase process by seeing a Nissan TV commercial or reading a brochure, and then goes to the showroom. At the end of the...

  • Page 27
    ... time assessing candidates. We visit the city, check the site the candidate has in mind, and examine their financial resources and management team. Once we award a franchise, we support it well. Even in the Profitably Riding a New Market Surge Two years after January 2004 when we started commercial...

  • Page 28
    ...drop would be a blow, however, because Russia is so dependent on the oil and gas business. Managing the market risks Russia poses requires a diversified portfolio, including luxury cars, compact cars and affordable entry-level models. Because of the market's great potential, we're investing in a new...

  • Page 29
    ... our corporation in India just a year ago, and currently sell one model, the X-TRAIL. People in India know about Nissan as a global company and about Mr. Ghosn, but they YOSHIE MOTOHIRO Managing Director don't really know we're Nissan Motor India selling cars in India yet. Pvt. Limited Nissan is...

  • Page 30
    ... NET INCOME TOTALED ¥518.1 BILLION, UP 1.1 PERCENT, A RECORD FOR A SIXTH CONSECUTIVE YEAR. GLOBAL SALES REACHED A HISTORIC HIGH OF 3,569,000 UNITS, A 5.3 PERCENT INCREASE IN A FIERCELY COMPETITIVE MARKET. THIS WAS THE FIRST YEAR OF NISSAN VALUE-UP, THE COMPANY'S THIRD MID-TERM BUSINESS PLAN, AND...

  • Page 31
    ... a global change of inter-company payments that favored Japan, which bears most of the company's engineering and global development costs. Operating profits in Japan amounted to ¥390.4 billion, compared to ¥341.1 billion yen in the previous fiscal year. Profitability in the U.S. and Canada totaled...

  • Page 32
    PERFORMANCE Automotive Net Cash Change Cash from operations totaled ¥1,106 billion. Despite a lump-sum contribution of ¥222.2 billion to Nissan Group pension funds, working capital and proceeds from asset sales helped to generate free cash flow of ¥271.3 billion. Cash from financing activities ...

  • Page 33
    ... IR team can manage market expectations about Nissan in order to maintain the Nissan share price close to an intrinsic value. The other measure, volatility, is used to measure the risk perceived by investors in Nissan stock. If Nissan can successfully reduce volatility, the minimum return required...

  • Page 34
    ... MARKETPLACE-IN JAPAN, NORTH AMERICA, EUROPE AND OUR GLOBAL OVERSEAS MARKETS, NISSAN CONTINUES TO SET AGGRESSIVE GOALS FOR REGIONAL DEVELOPMENT AND THEN MEET OR SURPASS THEM. NEW TERRITORIES, NEW NEEDS, NEW OPPORTUNITIES. WITH OUR RECOVERY COMPLETE, WE CAN NOW ASSESS A WEALTH OF EXPANSION OPTIONS...

  • Page 35
    GROWTH MOMENTUM Nissan Annual Report 2005 33

  • Page 36
    ... thousands of miles across the country, not just moving up the street, people had to make life decisions. However, a substantial number of our employees decided to come along. If you look at the marketing and sales staff, product planning staff, and parts and service staff-our faces in the field...

  • Page 37
    ... Infiniti brand each have their own distinct positioning, but the common denominator is edgy, dramatic design and performance. Every Nissan and Infiniti product has its own distinct advantages. For example, the Versa gets excellent gas mileage but is one of the biggest cars in its class, so you can...

  • Page 38
    ... grow with it. The Versa should also bring in some former used car buyers. If they purchase a Versa, we hope they'll progress to an Altima, Maxima, one of our SUV models or an Infiniti as their lives progress. The average Nissan buyer today is already among the youngest customer segments. One of the...

  • Page 39
    ... one in online shopping. Since our customers know a lot before they visit the dealership, it's not always a ten-step sales process; they may be at step seven. Being able to recognize that is a real key. We're very bullish on the future of the U.S. luxury market. The quality of our new products is...

  • Page 40
    ...Expansion In fiscal 2005, Nissan Europe delivered a record operating profit performance, going from 56 billion yen the previous year to 67.2 billion yen. There were three main reasons for the positive performance: a significantly improved product mix-we're selling more big cars compared to our total...

  • Page 41
    ... role in defining the new face of Nissan in Europe. Our Alliance with Renault continues to present valuable opportunities for expanding synergies in many areas ranging from shared services, IT, sales finance with Renault Credit International, light commercial vehicles and diesel engines. The latest...

  • Page 42
    ... and heavy-duty truck market last year. Another cause was due to macroeconomic control measures by the government. The economy was also overheated, especially in real estate investment, and there were some environmental problems. Based on the overheated economy, many new customers had already bought...

  • Page 43
    ... we had planned to do when the joint venture was formed three years ago. Now we are ready to grow DFL into a globally competitive car manufacturer. GROWTH MOMENTUM Nissan dealership in Guang Da The new Dongfeng Nissan engine plant (Huadu) Unveiling the new Sylphy Nissan Annual Report 2005 41

  • Page 44
    ... 160,000 or 170,000 units last year. The India study is nearly finished, and we will announce our plans for that market soon. In Australia, total industry volume stayed solid at close to a million units. Nissan is strong as an import carmaker in Australia, and we recently introduced a series of new...

  • Page 45
    ... strong ambitions for South Africa are materializing as we expand our lineup there, including a new locally produced model. During fiscal 2005 we began completely transforming the way we make vehicles and manage the plant in South Africa. Thirdly, our momentum in Latin America and the Caribbean has...

  • Page 46
    INVESTMENT FOR THE FUTURE 44 Nissan Annual Report 2005

  • Page 47
    ...STANDS READY. OUR TECHNICAL KNOW-HOW, ALREADY WORLD RENOWNED, WILL DEEPEN AS WE COMMIT BILLIONS TO NEW R&D INVESTMENTS. WE ARE FINDING MARKETS FOR EXISTING NISSAN TECHNOLOGICAL ASSETS AS WELL AS OUR BRAND. AND NEW FINANCING ARMS IN EMERGING MARKETS WILL GIVE CUSTOMERS EAGER TO BUY NISSAN QUALITY THE...

  • Page 48
    ... help avoid accidents. Our "Distance Control Assist System" is a prime example of that. The system is especially useful in heavy traffic, where frequent braking occurs. INVESTMENT FOR THE FUTURE The Orchard Concept 1. Harvest Plan 2. Seeding & Growth 3. Soil Enrichment 46 Nissan Annual Report...

  • Page 49
    ...panel showing real-time fuel use can change driving INVESTMENT FOR THE FUTURE Vision 2015 The Triple-Layered Approach Vision 2015 Technology Development Concept Traffic Circumstance Driving Behavior Safety Environment Life on Board Vehicle Dynamic Performance Nissan Annual Report 2005 47

  • Page 50
    ... working with universities and research centers in other companies. Our Alliance with Renault also continues to work for us in many ways. More and more of Nissan and Renault's total production is now covered by the common platform, and this trend will continue. By using the same powertrains, engines...

  • Page 51
    ... recently changed to Total Customer Satisfaction to reflect the wider scope of our responsibilities. A related development is the customer satisfaction officer or CSO position. We have one CSO each for Japan, North/South America, Europe and GOM managing product quality and sales and service quality...

  • Page 52
    ... the people at the Nissan Research Center, Nissan Advanced Technical Center, and Nissan Technical Center. They pay close attention to our analyses now, factor in our views when they make their programs, and even ask us for help with analysis. INVESTMENT FOR THE FUTURE 50 Nissan Annual Report 2005

  • Page 53
    ... to R&D people in other companies. Merchandising is another way to leverage Nissan's assets. Toys and games are examples. Another possibility is a management game for business school students. We used to just say yes to requests about using our cars in race games, without negotiating or considering...

  • Page 54
    ... interest rates worldwide squeezed our margins and made the sales finance business tougher in fiscal 2005. Our overall profitability was relatively good, however, and we managed losses and delinquencies very well. Net loss ratios at our main sales finance companies in the U.S., Japan, Canada and...

  • Page 55
    ...05 NCI (FY) 6.9% Lease NFS: Nissan Financial Service, sales finance company in Japan NMAC: Nissan Motor Acceptance Corporation, sales finance company in USA Retail NCI: Nissan Canada Inc., sales financing division in Canada * (= Total assets - Other liabilities + Off balance sources) because we...

  • Page 56
    ... Consolidated Five-Year Summary Business and Other Risks Corporate Governance Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Shareholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Independent Auditors...

  • Page 57
    FINANCIAL SECTION Nissan Annual Report 2005 55

  • Page 58
    ...,100 United Kingdom Others Global unit sales (wholesale) Japan North America Europe (Note2) Others (Note1) (Notes 1 and 2) Notes: 1. Unit sales in Mexico are included in "North America". 2. Sales and Production for Europe and Mexico for each year are on a January to December basis. (In the annual...

  • Page 59
    ...'s financial position and results of operations. Employee Retirement Benefit Expenses and Obligations The amount of retirement Nissan's benefit obligation and related expenses are calculated using various actuarial assumptions including the discount rate applied, the projected rate of return on plan...

  • Page 60
    ..., efficient and global internal audit is conducted by the internal audit departments established in the management companies in each region, all of which are controlled by the Chief Internal Audit Officer (CIAO). Corporate auditors perform audit of execution of entire business operations. Their...

  • Page 61
    ... or Departments, which operate risk control, report the status through the normal reporting lines and EC (Executive Committee) directly monitors the risk that must be controlled on corporate level. Compliance of corporate ethics and compliance system In 2001, the Company established "Nissan Global...

  • Page 62
    CONSOLIDATED BALANCE SHEETS Nissan Motor Co., Ltd. and Consolidated Subsidiaries Fiscal years 2005 and 2004 Millions of yen Thousands of U.S. dollars (Note 3) 2004 ASSETS Current assets: Cash and cash equivalents Short-term investments (Note 19) Receivables, less allowance for doubtful ...

  • Page 63
    ...for warranty costs Other long-term liabilities Total long-term liabilities 1,963,173 508,203 122,990 556,992 3,151,358 256,701 267,695 132,107 630,436 3,255,841 285,893 Minority interests Shareholders' equity (Notes 10, 14 and 22) : Common stock, without par value: Authorized -6,000,000,000 shares...

  • Page 64
    ... 736,497 Income taxes (Note 13) : Current Deferred 179,226 78,837 258,063 (22,889) ¥ 512,281 137,745 81,295 219,040 (13,790) ¥ 503,667 Minority interests Net income (Note 18) (36,583) ¥ 518,050 See notes to consolidated financial statements. FINANCIAL SECTION 62 Nissan Annual Report 2005

  • Page 65
    ...,426 shares at March 31, 2006, 2005 and 2004, respectively) Total shareholders' equity See notes to consolidated financial statements. 17,736 (21,652) (83,047) 151,590 ¥ (249,153) ¥3,087,983 ¥ (266,889) ¥2,465,750 ¥ (245,237) ¥2,023,994 $ (2,129,513) $26,393,017 Nissan Annual Report...

  • Page 66
    ...from sales of investment securities Long-term loans made Collection of long-term loans receivable Purchases of fixed assets Proceeds from sales of property, plant and equipment Purchases of leased vehicles Proceeds from sales of leased vehicles Purchase of subsidiaries' stock resulting in changes in...

  • Page 67
    ... and relating payments are charged to income as incurred. See Note 2 (c). (i) Retirement benefits Accrued retirement benefits for employees have been provided mainly at an amount calculated based on the retirement benefit obligation and the fair value of the pension plan assets as of balance sheet...

  • Page 68
    ... directly with sales as well as to unify the accounting policy within the Nissan group considering the fact that shipping costs for export parts to be used for manufacturing in overseas countries have increased due to the expansion of manufacturing activities outside Japan. The effect of this change...

  • Page 69
    ...the exchange rates in effect at the balance sheet dates, with the related exchange differences charged or credited to income, whereas the forward foreign exchange contracts are carried at fair value. This change was made as a result of the implementation of a newly modified internal operating system...

  • Page 70
    ... from banks ...¥1,159,743 Commercial paper ...366,998 Current portion of long-term debt...1,007,025 Current portion of lease obligations...58,523 ...¥2,592,289 ¥ 597,737 491,336 836,545 58,332 ¥1,983,950 $ 9,912,333 3,136,735 8,607,051 500,197 $22,156,316 68 Nissan Annual Report 2005

  • Page 71
    ... to the above, at March 31, 2006, finance receivables of ¥106,201 million ($907,701 thousand) which have been eliminated from the accompanying consolidated balance sheet were pledged as collateral for short-term borrowings of ¥106,092 million ($906,769 thousand). Nissan Annual Report 2005 69

  • Page 72
    ... balance sheets as of March 31, 2006 and 2005 for the Company's and the consolidated subsidiaries' defined benefit plans: Millions of yen 2005 As of Mar. 31, 2006 Mar. 31, 2005 2004 Thousands of U.S. dollars 2005 Mar. 31, 2006 Retirement benefit obligation ...Â¥(1,239,004) Plan assets...

  • Page 73
    ... disposal of fixed assets ...(22,213) Net gain (loss) on sales of investment securities ...40,223 Foreign exchange (loss) gain ...(34,836) Amortization of net retirement benefit obligation at transition...(11,145) Gain on return of substitutional portion of welfare pension fund plans (Note 9) ...772...

  • Page 74
    ...assets: Net operating loss carryforwards ...Â¥ 20,343 Accrued retirement benefits...157,319 Accrual for warranty costs ...67,461 Other ...454,878 Gross deferred tax assets ...700,001 ...Valuation allowance (38,880) Total deferred tax assets ...661,121 Deferred tax liabilities: Reserves under Special...

  • Page 75
    ...all its shares to the Company's consolidated subsidiary, Nissan China Investment Co., Ltd., during the year ended March 31, 2005: Millions of yen 2004 Mar. 31, 2005 For the year ended Current assets...Fixed assets ...Total assets ...Current liabilities ...Long-term liabilities ...Total liabilities...

  • Page 76
    ... dollars 2007 ...2008 and thereafter ...Total ... ¥329,177 422,419 ¥751,596 $2,813,479 3,610,419 $6,423,898 See Note 2 (c) for the change in the method of accounting for noncancelable lease transactions which transfer substantially all risks and rewards associated with the ownership of assets...

  • Page 77
    ... rights. Amounts per share of net assets are computed based on the net assets available for distribution to the shareholders and the number of shares of common stock outstanding at the year end. Cash dividends per share represent the cash dividends proposed by the Board of Directors as applicable to...

  • Page 78
    ... after one year through five years Due after five years through ten years Due after ten years Fiscal year 2005 (As of Mar. 31, 2006) Government bonds ...Corporate bonds ...Others ...Total ... ¥20 - - ¥20 ¥- - 4 ¥4 ¥- 59 - ¥59 ¥- - - ¥- 76 Nissan Annual Report 2005

  • Page 79
    ... an annual basis to the Board of Directors. Credit risk is monitored quantitatively with reference to Renault's rating system based principally on the counterparties' long-term credit ratings and on their shareholders' equity. The Finance Department sets a maximum upper limit on positions with each...

  • Page 80
    ... above exclude those entered into to hedge receivables and payables denominated in foreign currencies which have been translated and are reflected at their corresponding contracted rates in the accompanying consolidated balance sheets. 78 Nissan Annual Report 2005

  • Page 81
    ... 2005 (As of Mar. 31, 2006) Notional amount Fair value Interest rate swaps: Receive/floating and pay/fixed ...Receive/fixed and pay/floating ...Options: Caps sold...(Premium) ...Caps purchased ...(Premium) ...Total ... ¥127,717 239,000 ¥515,208 (-) 515,208 (-) - ¥ 640 757 ¥ 640 757 $1,091...

  • Page 82
    ... are sold in Japan and overseas, principally in North America and Europe, include passenger cars, buses and trucks as well as the related parts. Financial services include primarily leases and credits principally in Japan and North America. Business segments The business segment information for the...

  • Page 83
    ... in Note 2 (b), effective April 1, 2003, Nissan Motor Manufacturing (UK) Ltd., a consolidated subsidiary, implemented early adoption of a new accounting standard for retirement benefits in the United Kingdom. The effect of this change was to decrease operating income in the "Automobile" segment by...

  • Page 84
    ... sales financing subsidiaries and operations in Japan, the United States, Canada and Mexico. Amounts for the automobile and Eliminations segment represent the differences between the consolidated totals and those for the sales financing segment. 1) Summarized consolidated balance sheets by business...

  • Page 85
    ...189 166 7,355 Translation adjustments ...(397,428) (2,671) (400,099) Treasury stock ...(266,889) - (266,889) ...Total shareholders' equity 2,122,112 343,638 2,465,750 Total liabilities and shareholders' equity ...¥5,252,201 ¥4,596,322 ¥9,848,523 FINANCIAL SECTION Nissan Annual Report 2005 83

  • Page 86
    ... parties ...Internal loans to sales financing companies ...Short-term borrowings per the balance sheet ...Bonds and debentures ...Long-term borrowings from third parties ...Internal loans to sales financing companies ...Long-term borrowings per the balance sheet ...Lease obligations...Total interest...

  • Page 87
    ... 736,497 Net income...¥ 465,329 ¥ 38,338 ¥ 503,667 Total net financial cost ...¥ (15,669) ¥ (30) ¥ (15,699) Interest on lease obligations ...(4,603) (20) (4,623) Intersegment eliminations ...(5,322) - (5,322) Net financial cost for segment ...(5,744) (10) (5,754) Nissan Annual Report 2005 85

  • Page 88
    ... cash provided by operating activities ...691,091 Investing activities Proceeds from sales of investment securities including shares of subsidiaries...50,765 Proceeds from sales of property, plant and equipment...55,789 Purchases of fixed assets ...(456,550) Purchases of leased vehicles ...(47,366...

  • Page 89
    ... (used in) operating activities ...879,245 Investing activities Proceeds from sales of investment securities including shares of subsidiaries ...Proceeds from sales of property, plant and equipment ...Purchases of fixed assets ...Purchases of leased vehicles ...Proceeds from sales of leased vehicles...

  • Page 90
    ... including shares of subsidiaries ...Proceeds from sales of property, plant and equipment ...Purchases of fixed assets ...Purchases of leased vehicles ...Proceeds from sales of leased vehicles ...Other ...Net cash used in investing activities...Financing activities (Decrease) increase in short-term...

  • Page 91
    ... 2004 is summarized as follows: Fiscal year 2005 (For the year ended Mar. 31, 2006) Japan North America Europe Other foreign countries Millions of yen Total Eliminations Consolidated Sales to third parties ...¥2,674,549 ¥4,100,662 ¥1,414,674 ¥1,238,407 ¥ 9,428,292 ¥ - ¥ 9,428,292 Inter-area...

  • Page 92
    ... (b), effective April 1, 2003, Nissan Motor Manufacturing (UK) Ltd., a consolidated subsidiary, implemented early adoption of a new accounting standard for retirement benefits in the United Kingdom. The effect of this change was to decrease operating income in the "Europe" segment by ¥1,686 million...

  • Page 93
    ...the year ended March 31, 2006, were approved at a shareholders' meeting held on June 27, 2006: Millions of yen Thousands of U.S. dollars Year-end cash dividends (Â¥15.00 = U.S.$0.128 per share) ...Â¥65,979 Bonuses to directors ...390 $563,923 3,333 FINANCIAL SECTION Nissan Annual Report 2005 91

  • Page 94
    ... Public Accountants Hibiya Kokusai Bldg. 2-2-3, Uchisaiwai-cho Chiyoda-ku, Tokyo, Japan 100-0011 C.P.O. Box 1196, Tokyo, Japan 100-8641 Tel : 03 3503 1100 Fax: 03 3503 1197 The Board of Directors Nissan Motor Co., Ltd. We have audited the accompanying consolidated balance sheets of Nissan Motor...

  • Page 95
    ...: 4,520,715,112. 3. Cash dividends paid represent the amounts proposed by the board of Directors as applicable to the respective years, together with the interim cash dividends paid. 4. Cash dividends applicable to fiscal year 2005 is ¥29 per share. FINANCIAL SECTION Nissan Annual Report 2005 93

  • Page 96
    ... Motor Sales Co., Ltd. Nissan Chuo Parts Sales Co., Ltd. US Nissan North America, Inc. Nissan Motor Acceptance Corporation Nissan Technical Center North America, Inc. Nissan Motor Insurance Corporation FINANCIAL SECTION Location Principal business The company's Capital share(millions) holdings...

  • Page 97
    ... Technical Center Europe Ltd. Nissan Forklift Europe B.V. Nissan Motor Iberica, S.A. Nissan Motor Espana, S.A. Nissan Forklift Espana, S.A. Australia Nissan Motor Co. (Australia) Pty. Ltd. New Zealand Nissan New Zealand Ltd. Auckland Management of New Zealand subsidiaries; automobile sales NZ$51 100...

  • Page 98
    ...Renault Location Principal business The company's Capital share(millions) holdings*(%) Chiba, Chiba Manufacture and sales of automotive parts Â¥5,654 20.43 Billancourt Manufacture and sales of automobiles and parts â,¬1,086 15.52 Other affiliates accounted for by the equity method: Total...

  • Page 99
    ... Hiroto Saikawa European Operations (MC-E) Purchasing Executive Vice President Mitsuhiko Yamashita Research and Development Executive Vice President Carlos Tavares Corporate Planning Program Market Intelligence Product Planning Design Brand Management LCV Business Nissan Annual Report 2005 97

  • Page 100
    FOR FURTHER INFORMATION, PLEASE CONTACT Nissan Motor Co., Ltd. 17-1, Ginza 6-chome, Chuo-ku Tokyo 104-8023, Japan Investor Relations Global Communications, CSR and IR Division Tel: 81 (0)3-5565-2334 Fax: 81 (0)3-3546-2669 Corporate Communications Global Communications, CSR and IR Division Tel: 81...

  • Page 101

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