Nissan 2010 Annual Report Download - page 11

Entering the Next Phase Product Plan Performance
09Annual Report 2010NISSAN MOTOR CO., LTD.
In the same vein, three years ago most people would
have said the company could not be profitable at an
exchange rate of 90 yen to the dollar. For fiscal year 2010,
Nissan has taken the steps necessary to ensure operational
effectiveness and profitability at that level of exchange.
Reflecting our confidence in this outlook, we announced in
May that we plan to reinstate a dividend payment of 10 yen
per share for the 2010 fiscal year. We take very seriously
the obligation to our shareholders to enhance the long-term
enterprise value of Nissan and maximize total shareholder
return. We will expand on our plans in this regard as we
update our next mid-term plan in fiscal year 2011.
As a new member of the Nissan family, I am encouraged
by the focus, urgency and sacrifice shown by our people
during the economic crisis. As reflected in our fiscal year
2009 results, we have made great progress. Are we
completely out of the woods? Not yet. The financial markets
and the pace of the global economic recovery remain
somewhat fragile, as evidenced by the market uneasiness
over the sovereign debt levels in some of the Euro zone
countries. Notwithstanding the fragile state of the recovery, I
do believe that Nissan is well positioned operationally and
financially for whatever the future holds.
Joseph G. Peter
Chief Financial Officer
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 places like Mexico, Europe, South Korea
and China. Having worked and lived in several emerging and
often volatile markets, I have learned the importance of
operating with lean resources and reacting flexibly to
changing market dynamics. In my short time at Nissan, I
have found the company to be nimble and accustomed to
operating in environments that change quickly. As such, I am
confident that Nissan is well positioned to take advantage of
opportunities in emerging markets and new technological
areas that will fuel its future growth.
Part of my job is to help facilitate that growth by working
with our operational leaders to drive a business model that
generates industry-leading profitability and sustained cash
flow generation. Simply put, strong operating performance
generates cash, which bolsters the balance sheet, stabilizes
the business, strengthens our capability to endure potential
market dislocations or cyclical economic downturns, and
enables us to invest for the future.
We have massive potential to expand our business both
geographically in emerging markets from a portfolio
perspective, and also from a new technology perspective,
such as with Nissan LEAF. Make no mistake, providing
customers with great, innovative products and services is
the lifeblood of our business, and to do that we need to
keep investing in our product portfolio, manufacturing
facilities and distribution networks. We did this even during
the crisis of the past 18 months.
What changed is the intensity with which we scrutinized
our investment spending and costs across the whole
business value chain to ensure that we managed our
business as efficiently as possible, including continuing to
mine synergies through our Alliance with Renault. The crisis
spurred us to a new standard, and even as it passes we will
stay focused on increasing our productivity and eliminating
waste throughout our value chain.