Nissan 2006 Annual Report Download - page 16

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Nissan Annual Report 2005
14
Fiscal 2006 will be a year of two distinct halves. Volumes and operating profit will be
lower in the first half.
In the second half, however, volume growth will increase by more than 10 percent
and we expect our operating profit to accelerate as we begin to launch nine all-new
vehicles around the world—one in the first half but eight in the second.
During fiscal 2006, we will have 23 regional product-launch events around the
world. The most important of these introductions will be in the U.S. We will launch all-
new versions of the Altima, Sentra and Infiniti G35 sedan.
Assuming global industry volume of 63.9 million units, we 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, representing a 10.1 percent increase
Our financial outlook
Fiscal 2006 will present a challenging environment marked by volatile foreign
exchange rates, high raw material and energy prices, and climbing interest rates.
Competition, intensified by incentive offers, will be unrelenting. As we pursue Nissan
Value-Up commitments, we will stretch to succeed and take nothing for granted.
Taking all these elements into account, our forecast for fiscal 2006 is as follows.
This is based on a projected annual foreign exchange rate of ¥110 per dollar and
¥135 per euro:
• Net revenue of ¥10,075 billion, up 6.9 percent
• Operating profit in the ¥880 billion range, up 0.9 percent from fiscal 2005
• Ordinary profit of around ¥870 billion
• Net income totaling approximately ¥523 billion
• Capital expenditures of approximately ¥550 billion, representing 5.5 percent of
net sales
• R&D expenses totaling ¥490 billion, or 4.9 percent of net sales
• An ROIC rate of 20 percent
Shifting from Low to
High Gear in Fiscal 2006
FISCAL 2006 OUTLOOK
PERFORMANCE