Nissan 2011 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ... stakeholders include customers, shareholders, employees, dealers and suppliers, as well as the communities where we work and operate. Contents Financial Highlights 02 Mid-term Plan Message from the CEO Message from the COO Message from the CRO This annual report presents financial results for...

  • Page 3
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Financial Highlights 2010 For the years ended Mar. 31, 2011 02 2009 Mar. 31, 2010 2008 Mar. 31, 2009 2007 Mar. 31, 2008 2006 Mar. 31, 2007 Net sales1 Operating income (loss) Ordinary income (loss) Net ...

  • Page 4
    ... bring more innovation and excitement to our products and services, as well as cleaner, more affordable cars for everyone around the world. 03 Carlos Ghosn President and Chief Executive Officer Nissan Power 88 Nissan's new mid-term plan builds upon all the lessons learned, synergies developed and...

  • Page 5
    Mid-term Plan Message from the CEO Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 04 marketplace. We will expand our V-platform range of global products to three models to help us reach more than 1 million units from this platform in 2016. We are focusing more ...

  • Page 6
    Mid-term Plan Message from the CEO Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 05 production capacity, to 1.2 million units, and we will further increase our capacity to be in line with our goal of 10% market share. With our partner Dong Feng, we will continue to ...

  • Page 7
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Message from the COO 06 The Fusion of Management Power and Gemba Power A massive earthquake and tsunami shook Japan in March 2011. The disaster deeply affected Nissan's operations, but the company has ...

  • Page 8
    Mid-term Plan Message from the COO Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 07 The Global Disaster Control Headquarters gave guidance not only in Japan, but also to our operations in other regions around the world to promote necessary actions. Management power ...

  • Page 9
    ... vehicle delivery based on the latest situation. In addition to these delivery status updates, we also provided a variety of information on Nissan, thereby maintaining frequent contact with our customers to establish stronger relationships with them. Nissan's thorough management of the supply chain...

  • Page 10
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Message from the CFO 09 Moving Powerfully into Nissan's Future Nissan was well positioned to recover from the financial crisis and recorded its best year ever in fiscal 2010. The company has responded ...

  • Page 11
    Mid-term Plan Message from the CFO Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 10 the restoration activities. As a result of these actions, we were able to restart vehicle production at all our vehicle plants in Japan one month after the earthquake, on April 11, ...

  • Page 12
    Mid-term Plan Message from the CFO Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 11 changing conditions. We have put this capability successfully to the test during the changes in the market and business environment following the financial crisis touched off in 2008 ...

  • Page 13
    ... to be funded by profitable vehicles. By 2016 we aim to grow Infiniti sales from the 2010 level of 150,000 to a 10% global market share among facing luxury segments, which would represent 500,000 vehicles. This will make the brand a powerful driver of profit for Nissan as well as a halo product line...

  • Page 14
    Mid-term Plan Strategies for Growth Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 13 "global growth models," and our intent is to make these the top sellers in their segments in all markets where they are sold. We dedicate more time, engineering resources and ...

  • Page 15
    ... number of dealer outlets and service facilities. Nissan currently has 6,000 major sales locations around the world. We will expand our retail network to 7,500 outlets by 2016. To secure human resources to manage these dealerships, we will aggressively attract leading investors and business managers...

  • Page 16
    Mid-term Plan Strategies for Growth Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 15 Sales Network Quality In pursuing improvements in the quality of our sales networks, Nissan will focus its efforts mainly in mature markets where the networks are already firmly ...

  • Page 17
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Nissan Power 88 16 Nissan announced a wide-ranging, six-year business plan that will accelerate the company's growth across new markets and segments. The plan for fiscal years 2011 to 2016, called Nissan ...

  • Page 18
    Mid-term Plan Nissan Power 88 Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 17 Nissan Power 88 identifies six strategies as levers the company will use to achieve results according to plan. The six strategies are as follows. Pillar 1 Strengthening brand power To ...

  • Page 19
    ...'s sales outperformed the 12.6% of global total industry volume (TIV) growth, which resulted in an overall market share of 5.8%. In fiscal 2010, Nissan had a solid product offensive. The company launched ten all-new models globally, including its first zero-emission, affordable car, the Nissan LEAF...

  • Page 20
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Fiscal 2010 Sales Performance 19 Sales in Mexico increased 20.2% to 195,000 units and sales in Canada increased 3.5% to 83,300 units. Fuel-efficient models like the Rogue, Sentra and Altima contributed to ...

  • Page 21
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Fiscal 2011 Sales Outlook and New Technologies Fiscal 2011 Overview 20 The company expects global sales to reach 4,600,000 units, an increase of 9.9% from the prior year. The assumption for global TIV is 76...

  • Page 22
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Financial Review Fiscal 2010 Financial Performance Net sales For fiscal year 2010, consolidated net revenues increased 16.7%, to ¥8.773 trillion, which reflected sales volume increase in spite of the strong ...

  • Page 23
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Financial Review 22 Net income Net non-operating profit improved ¥104.2 billion from negative ¥103.9 billion to ¥0.3 billion in fiscal 2010. The positive impact came from the equity in earnings of ...

  • Page 24
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Financial Review 23 Credit rating Nissan's long-term credit rating with R&I is A with a stable outlook. S&P's long-term credit rating for Nissan is BBB+ with a stable outlook. Nissan's rating with Moody's ...

  • Page 25
    ...Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Financial Review 24 Dividend Nissan's strategic actions reflect not only its long-term vision as a global company that creates sustainable value but also show the company's commitment to maximizing total shareholder...

  • Page 26
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Financial Statements Consolidated Balance Sheets Prior Fiscal Year As of March 31, 2010 25 (Millions of yen) Current Fiscal Year As of March 31, 2011 Assets Current assets Cash on hand and in banks Trade ...

  • Page 27
    ... Corporate Data Corporate Governance NISSAN Annual Report 2011 Financial Statements 26 Consolidated Balance Sheets Prior Fiscal Year As of March 31, 2010 (Millions of yen) Current Fiscal Year As of March 31, 2011 Liabilities Current liabilities Trade notes and accounts payable Short-term...

  • Page 28
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Financial Statements 27 Consolidated Statements of Income Prior Fiscal Year From April 1, 2009 To March 31, 2010 (Millions of yen) Current Fiscal Year From April 1, 2010 To March 31, 2011 Net sales Cost ...

  • Page 29
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Financial Statements 28 Consolidated Statements of Cash Flows Prior Fiscal Year From April 1, 2009 To March 31, 2010 (Millions of yen) Current Fiscal Year From April 1, 2010 To March 31, 2011 Cash flows ...

  • Page 30
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Executives Board of Directors and Auditors 29 Executive Committee Members Representative Board Members Carlos Ghosn President and Chairman Toshiyuki Shiga Hiroto Saikawa Board Members Colin Dodge ...

  • Page 31
    ...: Japan, Asia Purchasing Colin Dodge* Region: AMIE (Africa, Middle East, India, Europe) Region: Americas Mitsuhiko Yamashita* Research and Development TCSX (Total Customer Satisfaction Function) Hidetoshi Imazu* Manufacturing and SCM Andy Palmer* Global Product Planning Global Program Management...

  • Page 32
    ... work together to maintain and promote our high compliance standards. NISSAN'S INTERNAL GOVERNANCE SYSTEM Shareholders appointment/ dismissal appointment/ dismissal audit appointment/ dismissal Board of Directors (incl. outside director) Executive Committee Operations Committee report direction...

  • Page 33
    ... in place in other Nissan Group companies worldwide. FISCAL 2011 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...

  • Page 34
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Maintaining Trust Through Transparency 33 Ensuring Personal Information Protection and Reinforcing Information Security Aware of our social responsibility to properly handle customers' personal information,...

  • Page 35
    ... finance Nissan operates captive sales finance companies in Japan, United States, Canada, Mexico, China, Australia and Thailand. In these countries, banks and other financial institutions are also involved in providing financing solutions to Nissan's customers and dealers. Additionally, in Europe...

  • Page 36
    ... Corporate Governance NISSAN Annual Report 2011 Maintaining Trust Through Transparency 35 2) Financial Market Nissan is exposed to various financial market related risks, such as foreign exchange, interest rates and commodity prices. It is general policy of Nissan not to use derivative products...

  • Page 37
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Maintaining Trust Through Transparency 36 establishing effective screening and collection systems and structures. Credit applicants are all subject to credit assessments of their creditworthiness under a ...

  • Page 38
    ... persons responsible for global quality to confirm the progress of Nissan quality improvement globally. With respect to new model projects, in order to achieve the quality target of each project, milestone meetings set each key process of design, prepare for production and production, confirm key...

  • Page 39
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Maintaining Trust Through Transparency 38 As described above, Nissan is implementing thorough quality checks before new model launches. Nissan is advancing quality improvement activities also after launch ...

  • Page 40
    ... Global, corporate focuses Functional, regional focuses Customers Plan Global Environmental Planning Office PDCA Global Environment Management Committee Employees Environmental Advisory Meetings, etc. Business partners Act Do PDCA Check PDCA Shareholders and investors Communities...

  • Page 41
    ... Decision / Instruction Report Deputy Chief Responsible for recovery action Decision / Instruction Report Communication External & Government Affairs Human Resources Asset Management Finance Supply Chain Management Market & Sales Parts Logistics Affiliated Companies Administration Production...

  • Page 42
    ... in order to expand markets globally. To deal with such risk, Nissan has been conducting risk assessment before making sourcing decisions, providing support for improvement activities after sourcing and implementing quality checks at key points in the production and logistics process. In 2011, we...

  • Page 43
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Maintaining Trust Through Transparency 42 3 elements of production Risk factor HR/Workforce Purchased parts/ Raw materials Facilities/Equipment Natural disasters (earthquakes) • Reinforcement of ...

  • Page 44
    ... of the insurance conditions by negotiating with insurance market together with our Alliance partner Renault from fiscal 2011. • Transportation and storage of vehicles and products for sales This programs covers risks of transportation and the supply chain for parts and products globally. By...

  • Page 45
    Mid-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Maintaining Trust Through Transparency 44 Nissan Global Reinsurance, established in Bermuda, reinsures a certain amount of risks for each of our global programs. Utilization of a captive insurance company ...

  • Page 46
    ...-term Plan Performance Corporate Data Corporate Governance NISSAN Annual Report 2011 Information Financial Data To obtain more detailed financial information, please visit our IR website noted below. http://www.nissan-global.com/EN/IR/ 45 For further information, please contact: Nissan Motor...