Nissan 2008 Annual Report Download - page 12

Download and view the complete annual report

Please find page 12 of the 2008 Nissan annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 102

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102

10 Nissan Annual Report 2008
PERFORMANCE
FISCAL 2007 PERFORMANCE
Solid in Tough Times
In fiscal 2007, the global automotive industry
faced many serious challenges in a tough
environment. Nissan, however, was able to stay
on track and make gains on several fronts.
Fiscal 2007 sales performance
Nissan released eleven all-new models globally
during fiscal 2007. These outstanding models
included the GT-R supercar, Rogue and Infiniti G37
coupe. Our global sales increased 8.2 percent from
the previous year to 3,770,000 units.
In Japan, sales reached 721,000 units. Although
that represented a 2.5 percent decrease, the industry
as a whole was down 5.3 percent, so Nissan’s
market share actually increased to 13.6 percent.
In North America, sales totaled 1,352,000 units,
up 1.3 percent in a market that fell 3.5 percent. In
Europe, sales increased 17.9 percent to 636,000
units, and Nissan’s market share there rose to 2.9
percent.
In the General Overseas Markets, sales rose 22.1
percent to 1,061,000 units. In the Middle East, sales
jumped 36.4 percent to 198,000 units. Sales in
China climbed 26.0 percent to 458,000 units, while
our market share increased by 22 percent.
Fiscal 2007 financial performance
For the purposes of comparison with fiscal 2006,
fiscal 2007 excludes the one-time fifth-quarter
inclusion made in 2006 to harmonize the fiscal years
of overseas subsidiaries such as Europe and Mexico.
• For fiscal 2007, Nissan’s consolidated net
revenues increased 11.6 percent to ¥10 trillion,
824.2 billion.
• Consolidated operating profit was ¥790.8
billion, compared to ¥755.5 billion in fiscal
2006, up 4.7 percent. The increase in operating
profit was the result of significant volume
growth.
• As a percentage of net revenue, Nissan’s
operating profit margin came to 7.3 percent.
• Net income reached ¥482.3 billion, up 7.4
percent, compared to ¥449.2 billion in fiscal
2006.
• Nissan had a net cash position of ¥180.3 billion
at the close of fiscal 2007 and generated free
cash flow of ¥456.7 billion.
NISSAN Value-Up summary
The NISSAN Value-Up business plan that began in
fiscal 2005 set three key commitments for the
company:
1. Top-level operating profit margin among global
automakers from fiscal 2005 to 2007
2. Sales of 4.2 million in fiscal 2008
3. A 20 percent average return on invested capital
We pursued four breakthroughs during NISSAN
Value-Up designed to sustain and build upon the
foundations laid during the Nissan Revival Plan and
NISSAN 180. While NISSAN Value-Up did not earn
a full score, it did achieve high marks.
The first commitment was to deliver a top-level
operating profit margin. Although our operating profit
was not as high as we had hoped, Nissan continues
to maintain a margin at the upper range of the
industry. The second commitment—4.2 million units
in sales—was transferred to fiscal 2009, becoming a
milestone in the new NISSAN GT 2012 plan. Finally,
Nissan’s return on invested capital averaged 17
percent over the plan’s three years. Although that
result was below our 20 percent goal, it still placed
the company in the top echelon among global
automakers.