Nissan 2010 Annual Report Download

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2010
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Year Ended March 31 2010
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Nissan: Enriching People’s Lives
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Table of contents

  • Page 1
    Annual Report 2010 01 Annual Report 2010 Nissan: Enriching People's Lives Year Ended March 31 , 2010

  • Page 2
    ...Mission Nissan provides unique and innovative automotive products and services that deliver superior measurable values to all stakeholders* in alliance with Renault. *Our stakeholders include customers, shareholders, employees, dealers, suppliers, as well as the communities where we work and operate...

  • Page 3
    ... 15 Product Plan Strategies after the Financial Crisis Zero Emission Strategy 30 32 Executives Corporate Governance Contents This annual report presents financial results for the fiscal period ending March 31, 2010. The report also provides shareholders with insights into Nissan's management team...

  • Page 4
    ... Japan Roox 2010 March February 2010 2010 • Nissan launches the all-new March in Thailand • Nissan announces it will open a new design studio in Beijing • The Renault-Nissan Alliance inaugurates plant in Chennai, India • Nissan wins an energy conservation prize for its eco-mode function...

  • Page 5
    ... total assets Return on equity Price earnings ratio Cash flows from operating activities Cash flows from investing activities Cash flows from financing activities Cash and cash equivalents at end of year Net automotive interest-bearing debt Employees ( ) represents the number of part-time employees...

  • Page 6
    ... the total Alliance share of the market. In Russia, we will introduce new models to expand our presence, and we will use Renault and Avtovaz platforms and production sites to optimize our capacity. In the Middle East, we are on the offensive with a revitalized network of national sales companies and...

  • Page 7
    ... and improving performance. Supported by the dedicated team within Renault Nissan BV, the Alliance has benefited from significant synergies in fiscal 2009, through pure cost and CAPEX savings as well as cost and CAPEX avoidance. In 2010 the Alliance should generate additional benefits through new...

  • Page 8
    ...plan. Our consolidated operating profit of 311.6 billion yen represents the fruit of all their hard work. In fiscal year 2009, we revisited all our expenses and investments while carrying out initiatives to boost market share and sales volume in declining markets, with the aim of generating positive...

  • Page 9
    ... in Japan, the U.S. and Europe, and we are working to scale back costs by the launch of global mass marketing in 2012. We plan to penetrate the market by offering our EV at an affordable price and use it to create new customer values, communicate our environmental efforts and technological abilities...

  • Page 10
    ..., tax and risk management capabilities-is to create a strong, globally integrated finance organization that is a partner to our operational teams and is focused on supporting them to drive exceptional business results through timely, relevant and accurate financial analysis and strategy. Joseph...

  • Page 11
    Prior to joining Nissan in October 2009, I spent over 25 years with General Motors Corporation in various financial management assignments, including top leadership positions in the Asia Pacific and North America regions. I have spent about half of my career working outside the United States in ...

  • Page 12
    ... both positive free cash flow and consolidated operating profit. Reducing our cost base was a major element of the recovery plan. One of the main pillars of the plan was to reduce costs for monozukuri-related functions such as engineering, purchasing, manufacturing, and supply chain management by...

  • Page 13
    ... rise to 360 billion, but we expect to return to a net cash position by the end of the fiscal year. We will continue to run lean and prepare for better times in 2011. Entering the Next Phase Product Plan Performance Colin Dodge Chief Recovery Officer NISSAN MOTOR CO., LTD. Annual Report 2010 11

  • Page 14
    ...to produce low-cost vehicles that are still profitable and reliable. We cannot compromise quality; we need to maintain our brand image and meet the needs of these customers, many of whom are spending one to two years' salary on their first car. We will use partnerships to get the job done, including...

  • Page 15
    ...LCV presence. The most obvious market is the United States. This autumn we will fix that when we introduce the new NV series-including the NV1500, NV2500 and NV3500-all designed specifically for the U.S. customer. Product Plan Performance Micra/March NISSAN MOTOR CO., LTD. Annual Report 2010 13

  • Page 16
    ... the local market and our experience in LCVs, this partnership is advantageous. LCV production there will start in mid-2011. bring to market a great engine in a great car and dream about having a reasonable presence in Europe. There is very little cross shopping of luxury customers between Infiniti...

  • Page 17
    ...the end of 2011 a total of 1,300 should be operational. In Japan, local governments and third parties have already installed about 160 quick-charge facilities. Nissan will also offer normal charging facilities through its entire NISSAN MOTOR CO., LTD. Product Plan Performance 15 Annual Report 2010

  • Page 18
    ... will commence sales of Nissan-developed in-house quick chargers in Japan through our regional parts sales affiliates. By offering these quick chargers to the market at a competitive price, we seek to accelerate the deployment of the infrastructure required. Nissan LEAF-More Than an Eco-Car Most of...

  • Page 19
    ... range anxiety that involve what the car can do and support outside of the car. Incorporating the latest information technology, Nissan LEAF vehicles will be in contact with our global data center. The system will show route suggestions and provide the location of the nearest charging station...

  • Page 20
    ... offered by the government. Nissan's sales increased 2.9% to 630,000 units. Market share remained stable at 12.9%. In Japan, Nissan launched the new small van NV200 Vanette in May 2009, Fuga luxury sedan in November 2009 and minicar Roox in December 2009. North America Chart 0 2 Refer to In North...

  • Page 21
    ... 1,000 4 Entering the Next Phase 0 (Forecast) 3 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 Chart 02: Product Plan RETAIL SALES IN MAJOR MARKETS Japan (Units: thousands) 1,000 United States 856 824 -3.8% 945 +14.7% 750 612 630 +2.9% 600 -4.8% Performance 500 250 0 (Forecast...

  • Page 22
    .... The company's market share is expected to rise 0.3% to 5.8%. Japan Chart 0 2 / 0 3 Refer to In Japan, Nissan plans to sell 600,000 units in fiscal year 2010. After the launch of the Juke, Nissan will launch the minivan Elgrand, another new minivan and a minicar for the market. North America Chart...

  • Page 23
    ... 01 0 A L L - N E W P R O D U C T L A U N C H E S Japan Juke Elgrand New minivan New mini North America Nissan LEAF Quest Convertible Crossover NV Series Infiniti QX Entering the Next Phase Other markets Affordable sedan Chart 04: Product Plan NUMBER OF COMMERCIALIZED NEW TECHNOLOGIES 20 17...

  • Page 24
    ... market conditions. • The provisions for the residual risk on leased vehicles in North America resulted in a positive variance of ¥141.7 billion, including gains on disposal because of improved used-car prices in the company's lease portfolio. • R&D costs decreased ¥64.5 billion. • Sales...

  • Page 25
    ...end of fiscal year 2009. The company continues to manage inventory carefully, in order to limit its impact on free cash flow. Entering the Next Phase Chart 05: Chart 06: Chart 07: Product Plan NET SALES (Billions of yen) 12,000 OPERATING PROFIT (Billions of yen) 1,200 NET INCOME (Billions...

  • Page 26
    ... Car. R&D expenditures totaled ¥385.5 billion. These funds were used to develop new technologies and products. One of the company's strength is its extensive collaboration and development structure with Renault's R&D team, resulting from the Alliance. Dividend Chart 1 1 Refer to Nissan's strategic...

  • Page 27
    ... 262 150 2 0 (Forecast) 0 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 Chart 11: DIVIDEND (Dividend per share, in yen) 60 45 40 34 29 30 24 19 14 15 8 11 0 10 0 (Forecast) '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 NISSAN MOTOR CO., LTD. Annual Report 2010 25

  • Page 28
    ... Consolidated Balance Sheets Prior Fiscal Year As of March 31, 2009 (Millions of yen) Current Fiscal Year As of March 31, 2010 Assets Current assets Cash on hand and in banks Trade notes and accounts receivable Sales finance receivables Securities Merchandise and finished goods Work in process Raw...

  • Page 29
    ... Lease obligations Deferred tax liabilities Accrued warranty costs Accrued retirement benefits Accrued directors' retirement benefits Other Total long-term liabilities Total liabilities Net assets Shareholders' equity Common stock Capital surplus Retained earnings Treasury stock Total shareholders...

  • Page 30
    ..., 2009 (Millions of yen) Current Fiscal Year From April 1, 2009 To March 31, 2010 Net sales Cost of sales Gross profit Selling, general and administrative expenses Advertising expenses Service costs Provision for warranty costs Other selling expenses Salaries and wages Retirement benefit expenses...

  • Page 31
    ... Proceeds from minority shareholders Purchase of treasury stock Repayment of lease obligations Cash dividends paid Cash dividends paid to minority shareholders Other Net cash used in financing activities Effects of exchange rate changes on cash and cash equivalents Increase (decrease) in cash and...

  • Page 32
    Executives Executive Committee Members Board of Directors and Auditors Representative Board Members Carlos Ghosn President and Chairman Toshiyuki Shiga Board Members Colin Dodge Carlos Ghosn Toshiyuki Shiga Colin Dodge Hiroto Saikawa Mitsuhiko Yamashita Carlos Tavares Hidetoshi Imazu Jean-...

  • Page 33
    ... Affairs Intellectual Asset Management Design Brand Management Corporate Governance Global Internal Audit Executive Vice Presidents Yasuhiro Yamauchi Shigeaki Kato Takao Katagiri Greg Kelly Colin Dodge* Region: Europe, Africa, Middle East, India New Project Hiroto Saikawa* Region: Japan, Asia...

  • Page 34
    ...established as supports to a global Chart 01: NISSAN'S INTERNAL GOVERNANCE SYSTEM Shareholders appointment/ dismissal appointment/ dismissal audit appointment/ dismissal Board of Directors (incl. outside director) Executive Committee Risk Management Function Operations Committee report direction...

  • Page 35
    Chart 02: FISCAL 2010 GLOBAL COMPLIANCE COMMITTEE ORGANIZATION NML Board of Directors Global Compliance Committee Operations Committee Global Compliance Officer Japan, Asia Pacific Management Committee Japan, Asia Pacific Compliance Committee Nissan Motor Co., Ltd. Compliance Committee ...

  • Page 36
    ... its Global Risk Management Policy, Nissan carries out activities on a comprehensive, group wide basis. In order to respond swiftly to changes in its business environment, Nissan set up the department in charge of risk management, which carries out annual interviews of corporate officers, carefully...

  • Page 37
    ... Next Phase Product Plan Performance 03: (As of March, 2010) SALES FINANCE BUSINESS FUNDING SOURCES Equity 10.8% ABS Off B/S 7.0% Commercial Paper 3.7% S/T Loan 0.9% Group Finance (Inter-Company) 17.9% ABS On B/S 28.0% L/T Loan 20.6% Bonds 11.1% NISSAN MOTOR CO., LTD. Annual Report 2010 35

  • Page 38
    ... policy of Nissan not to use derivative products as a primary tool to manage these risks, as it will not provide a permanent solution to mitigate the risks. Nissan is taking following measures to minimize financial market risks. Foreign exchange As a company engaged in export activities, Nissan...

  • Page 39
    ... of used car market in Japan. To support used car market value Nissan takes several strategic initiatives, including control of sales incentives for new car sales promotion, fleet sales volume control and introduction of Certified Pre-owned program. As a matter of accounting policy, Nissan evaluates...

  • Page 40
    ... of quality of commercial production and preparedness for service / maintenance. As described above, Nissan is implementing thorough quality check before new model launch. Nissan is progressing quality improvement activities also after launch by gathering quality information from markets and...

  • Page 41
    ...(Easy Voice System). This allows any employees to submit opinions, questions, requests or suspected compliance issue directly to Nissan's management. Additionally, Nissan created sets of internal regulations covering the Global Prevention of Insider Trading and the management of personal information...

  • Page 42
    ... recovery action Decision / Instruction Report Communication External & Government Affairs Human Resources Asset Management Treasury Supply Chain Management Market & Sales Forklift Affiliated Companies Administration Production Control Production Engineering Manufacturing HR Purchasing Information...

  • Page 43
    ... support for improvement activity after sourcing • Quality assessment at production preparation phase • Quality check at mass production phase (action "Gate1-3") - Decrease of skilled workers / experts • Plan to rebuilt of HR development System (FY10) - - NISSAN MOTOR CO., LTD. Annual...

  • Page 44
    ... such as Nissan and Renault can monitor their suppliers' risk commonly and constantly on a global base. Contingency plan In order to respond timely and agilely in case of contingency, cross functional committee was formed and this enabled prompt decision making. Development of decision making system...

  • Page 45
    ... obtain more detailed financial information, please visit our IR website noted below. http://www.nissan-global.com/EN/IR/ For further information, please contact: Nissan Motor Co., Ltd. 1-1, Takashima 1-chome, Nishi-ku, Yokohama-shi, Kanagawa 220-8686, Japan Investor Relations Department Tel: 81...