Nissan 2010 Annual Report Download - page 10

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Chief Financial OfficerJoseph G. Peter
08
Driving to Profit Despite Rough Terrain
Entering the Next Phase:
Messa efrom the CFO
g
Nissan also achieved positive free cash flow of 375.5 billion
yen, which reflected an intense focus on working capital
management as well as the improved profitability in our
business. As a result, our automotive net debt position
improved by 358.2 billion yen from the prior year-end and
stood at 29.7 billion yen as of March 31, 2010. We have
ample liquidity in the auto business with cash and undrawn
committed credit facilities of over one trillion yen. Our debt
structure has also improved as we have reduced our
reliance on short-term borrowing. We have sufficient
liquidity in our sales finance business as well, and our asset
and liability maturities are well aligned.
As the CFO at Nissan, I am responsible for the
accounting, control, treasury/risk management, investor
relations and tax functions as well as our sales finance
operations. My vision for the finance organization—beyond
ensuring robust accounting, reporting, treasury, 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.
“That which does not kill us makes us stronger” is an
old adage that really applies to the past year as the
turmoil in the financial markets that began in 2008 and
ensuing global economic crisis have taken a
particularly severe toll on the automotive industry.
Looking back, I believe that Nissan has weathered this
storm as well as any competitor, and better than most
expected. The organizational focus and recovery
actions taken to preserve cash and restore profits
during the crisis have indeed made Nissan stronger. In
fiscal year 2009, Nissan returned to profitability with
operating profit and net income of 311.6 billion yen
and 42.4 billion yen, respectively. This was achieved
even as the yen strengthened over 8 percent versus
the U.S. dollar when compared to fiscal year 2008.