Nissan 2010 Annual Report Download - page 8

Download and view the complete annual report

Please find page 8 of the 2010 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 45

  • 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

Chief Operating OfficerToshiyuki Shiga
06
Surmounting the Crisis
Entering the Next Phase:
Messa efrom the COO
g
to rising demand while keeping tight control on inventory
when governments introduced scrap incentives and
economic stimulus packages in the U.S., Europe and Japan.
As a result, Nissan minimized lost opportunities and
increased its sales in face of a volatile market.
One of our strengths—compact, fuel-efficient cars—
drove sales increases in China, the U.S. and Japan. We
reacted with particular swiftness in Japan by providing the
Nissan Eco series, a diverse product lineup that benefits
from tax credits and subsidies for eco-friendly cars. In China,
we offered abundant product choices that catered to local
market needs and met tax reduction requirements for
1.6-liter models and under.
It is too early to say whether global TIV will recover fully
in fiscal year 2010. We expect demand to fall in Japan and
Europe when governmental support ends. The U.S. market
is gradually recovering, although it is still falling short of its
peak. We also see signs of recovery in Russia and the
Middle East, but they are not yet robust. Raw material prices
are rising as well, representing a major risk factor along with
the continued risk of foreign exchange volatility. An
exchange rate of 90 yen to the U.S. dollar poses challenges
in terms of profit and revenue.
We assume that the climate will remain tough, but we still
expect our global sales to reach 3.8 million—a record level
for Nissan, and an increase of 8.1 percent over the 3.5
million units we sold in fiscal year 2009.
In the wake of the financial crisis that began in late
2008 and the widespread economic recession that
followed, Nissan reacted quickly, developing a
recovery plan and rising to the challenge. Every Nissan
employee understood the state of the company and
what needed to be done, and contributed to the
execution of our 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 free cash flow and consolidated
operating profit. For example, we raised production to adapt