Nissan 2007 Annual Report Download - page 19

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Nissan Annual Report 2006-2007 17
Net Cash Flow (automotive)
(Billion Yen)
• Product enrichment, including regulatory costs,
had a negative impact of ¥66.3 billion.
• R&D expenses increased by ¥1.4 billion.
• Manufacturing and logistics expenses went up
by ¥4.9 billion.
• Warranty expenses had a positive impact of
¥1.9 billion.
• General, administrative and other expenses rose
¥6.6 billion.
• As previously mentioned, the inclusion of an
additional quarter from former December
ending companies generated a positive impact
of ¥21.4 billion.
By region, for fiscal 2006, operating profits in
Japan were ¥270.6 billion, which decreased from
¥390.4 billion in fiscal 2005. Although mini cars
remained a profitable business, the deterioration in
mix and decrease in overall volumes in Japan were
the main reasons for the decline in profitability.
Profitability in the U.S. and Canada was ¥282.6
billion, versus ¥345.4 billion last year. Thirty percent
of the decline in U.S. profitability was attributable to
the QR 25 engine recall, which was booked in
regional accounts. In Europe, operating profit
increased to ¥79.6 billion in fiscal 2006 from ¥67.2
billion in fiscal 2005. In the General Overseas
Markets, operating profit was ¥113.3 billion, versus
¥101.2 billion last year. Inter-regional eliminations
resulted in a positive ¥9.4 billion.
Net income
Net non-operating expenses came to ¥15.8 billion,
improving from last year’s ¥25.9 billion due to the
absence of a negative foreign exchange impact.
Net extraordinary items totaled negative ¥63.7
billion, ¥26.8 billion higher than last year. Included in
this year’s extraordinary items were headcount
reduction programs in the U.S. and Japan, which were
announced in April, with an impact of ¥28.0 billion.
Pre-tax income was ¥697.4 billion. Taxes totaled
¥212.1 billion, which represented an effective
consolidated tax rate of 30.4 percent.
Minority interests, which are profits from fully
consolidated companies that Nissan does not own
outright, such as Calsonic Kansei, Aichi Kikai and
Nissan Shatai, amounted to ¥24.5 billion. Net income
reached ¥460.8 billion, versus ¥518.1 billion in
fiscal 2005.
FINANCIAL POSITION
Balance sheet
In fiscal 2006, Nissan’s total consolidated assets
went up by 8.0 percent to ¥12,402.2 billion.
Current assets increased by 7.8 percent to
¥6,492.9 billion. The main reasons were the ¥190.5
billion increase in notes and accounts receivables and
a ¥148.2 billion increase in inventories. Fixed assets
increased to ¥5,909.3 billion, an 8.3 percent rise.
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