Nissan 2012 Annual Report Download

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Year Ended March 31, 2012
Annual Report 2012

Table of contents

  • Page 1
    Annual Rep Re epo por or t 2012 Year Ended March 31, 2012 Annual Report 2012

  • Page 2
    ... customers, shareholders, employees, dealers and suppliers, as well as the communities where we work and operate. Contents Financial Highlights 02 Performance Fiscal 2011 Sales Performance 14 16 17 21 Fiscal 2012 Sales Outlook and New Technologies fear 2 Power 88 Message from the CEO Message...

  • Page 3
    ... fiscal 2011 is not presented because the Company had no securities with dilutive effects. 3. Price earnings ratio for fiscal 2008 is not presented because a net loss per share is recorded. 4. The number of part-time employees has been changed to present the average number of part-time employees for...

  • Page 4
    ... mid-term business plan: Nissan Power 88, a six-year program for growth. The word Power symbolizes our goals for brand and sales development, combined with greater focus on the overall customer experience. The numerals 88 represent our targets of 8% global market share and a sustainable 8% operating...

  • Page 5
    ...geomarketing strategy to optimize dealer coverage and increase customer convenience. This year, we will expand our global network by opening 750 new dealer locations, the largest annual increase during Nissan Power 88. We will also increase our sales per outlet, as it is a key measure of operational...

  • Page 6
    ... Times Nissan addressed great challenges in the first year of its new mid-term business plan. With a focus on geographic and consumer diversity, as well as environmentally friendly mobility options, it epitomized the Nissan Way: "The power comes from inside." NISSAN Annual Report 2012 Toshiyuki...

  • Page 7
    Year 2 Power 88 Message from the COO Innovation & Power of brand Performance Corporate Data Corporate Governance 06 NISSAN Annual Report 2012 For example, the Marph, our pompapt par for the Japanese market, was produped previously in our Oppama Plant in Japan but has been relopated to our ...

  • Page 8
    ... CFO Innovation & Power of brand Performance Corporate Data Corporate Governance 07 Message from the CFO Growing Yet Ready to Address Any Situation NISSAN Annual Report 2012 Nissan wrapped up the first year of its mid-term business plan with solid performance across the board. The company is...

  • Page 9
    ..., and we will continue to work to improve our credit rating and strengthen our balance sheet further. Under this policy and our current outlook for the Power 88 period, we project that the dividend per share will rise over the course of the mid-term plan. Joseph G. Peter Chief Financial Officer

  • Page 10
    ... our plan. We aim to achieve a global market share of 8% from 5.8% in 2010, and we will increase our corporate operating profit to a sustainable 8% from 6.1% in 2010. Nissan is implementing 6 tactics under Nissan Power 88: NISSAN Annual Report 2012 1. Brand power To strengthen Nissan's brand power...

  • Page 11
    ... year. With its market leadership in the EV segment and its new Infiniti global headquarters in Hong Kong, Nissan is delivering a powerful, unified message of innovation and excitement to consumers around the globe. Can you provide your thoughts on the current status of the Brand? There's no doubt...

  • Page 12
    ... strong financials. So what are the remaining weaknesses? They are Brand power and Sales power. So our latest mid-term plan is all about addressing those "last weaknesses" of the company. If we do, the consequence will be the "88" in the plan's name: 8% global market share and 8% operating profit...

  • Page 13
    Year 2 Power 88 Message from Palmer EVP Innovation & Power of brand Performance Corporate Data Corporate Governance 12 NISSAN Annual Report 2012 How has Nissan FEAF contributed to brand strength? Nissan LEAF is an absolute example of stand-out innovation. By 2050, 70% of the world's ...

  • Page 14
    ... of brand Performance Corporate Data Corporate Governance 13 CEO Nissan's Electric Vehicle History NISSAN Annual Report 2012 Nissan is committed to leadership in the field of zero-emission mobility. Toward this goal, we have engaged in a wide range of activities over the years. Nissan LEAF...

  • Page 15
    ... five new models globally: the Tiida in China, the Lafesta Highway Star in Japan, front-drive and rear-drive versions of the NV400 commercial van in Europe and the Infiniti JX in the United States. During fiscal 2011, the Nissan LEAF passed the sales milestone to make it the world's most successful...

  • Page 16
    Year 2 Power 88 Fiscal 2011 Sales Performance Innovation & Power of brand Performance Corporate Data Corporate Governance 15 NISSAN Annual Report 2012 North America In North America, Nissan's total sales volume increased 12.7% to 1,404,000 units. In the United States, TIV increased 8.9% to 13...

  • Page 17
    ... 2 Power 88 Fiscal 2011 Sales Performance Innovation & Power of brand Performance Corporate Data Corporate Governance 16 Fiscal 2012 Sales Outlook and New Technologies Fiscal 2012 Overview NISSAN Annual Report 2012 We expect our global sales to reach 5,350,000 units, an FY2012 SALES OUTLOOK...

  • Page 18
    ...brand Performance Corporate Data Corporate Governance 17 Financial Review Fiscal 2011 Financial Performance Net sales For fiscal year 2011, consolidated net revenues increased 7.2%, to 9.409 trillion yen, which reflected by sales volume increase in spite of the strong yen. NISSAN Annual Report...

  • Page 19
    ...of brand Performance Corporate Data Corporate Governance 18 NISSAN Annual Report 2012 Net income Net non-operating profit deteriorated 11 billion yen from positive 0.3 billion yen to negative 10.7 billion yen in fiscal 2011. The negative impact came from the equity in earnings of affiliates by...

  • Page 20
    ... Review Innovation & Power of brand Performance Corporate Data Corporate Governance 19 NISSAN Annual Report 2012 Credit rating Nissan's long-term credit rating with R&I is A with a positive outlook. S&P's long-term credit rating for Nissan is BBB+ with a stable outlook. Nissan's rating with...

  • Page 21
    ... & Power of brand Performance Corporate Data Corporate Governance 20 NISSAN Annual Report 2012 Dividend Nissan's strategic actions reflect not only its long-term vision as a global company to create sustainable value but also the company's commitment to maximizing total shareholder return. We...

  • Page 22
    ... Financial Statements Consolidated Balance Sheets Prior Fiscal Year As of March 31, 2011 NISSAN Annual Report 2012 (Millions of yen) Current Fiscal Year As of March 31, 2012 Assets Current assets Cash on hand and in banks Trade notes and accounts receivable Sales finance receivables Securities...

  • Page 23
    ... & Power of brand Performance Corporate Data Corporate Governance 22 NISSAN Annual Report 2012 Consolidated Balance Sheets Prior Fiscal Year As of March 31, 2011 (Millions of yen) Current Fiscal Year As of March 31, 2012 Liabilities Current liabilities Trade notes and accounts payable Short...

  • Page 24
    ... Statements Innovation & Power of brand Performance Corporate Data Corporate Governance 23 NISSAN Annual Report 2012 Consolidated Statements of Income Prior Fiscal Year From April 1, 2010 To March 31, 2011 (Millions of yen) Current Fiscal Year From April 1, 2011 To March 31, 2012 Net sales...

  • Page 25
    ... of brand Performance Corporate Data Corporate Governance 24 NISSAN Annual Report 2012 Consolidated Statements of Cash Flows Prior Fiscal Year From April 1, 2010 To March 31, 2011 (Millions of yen) Current Fiscal Year From April 1, 2011 To March 31, 2012 Cash flows from operating activities...

  • Page 26
    Year 2 Power 88 Executives Innovation & Power of brand Performance Corporate Data Corporate Governance 25 Executives Board of Directors and Auditors Executive Committee Members NISSAN Annual Report 2012 Representative Board Members Carlos Ghosn President and Chairman Toshiyuki Shiga Hiroto...

  • Page 27
    ... Chain Management) Andy Palmer* Global Product Planning Global Program Management Global Market Intelligence Global IS Global Infiniti (& Luxury) Business Unit Global Marketing Communications Global Corporate Planning (Incl. OEM Business) Vehicle Information Technology Performance Program Director...

  • Page 28
    ... 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 Risk Management Function Operations Committee report direction...

  • Page 29
    ... 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 Affiliated Companies Compliance Committee Dealers Compliance Committee Nissan...

  • Page 30
    ...place when risk factors do materialize. Nissan Group companies in Japan and overseas are strengthening communication and in order to share basic processes and tools for risk management, as well as related information, throughout the Group. Additionally, a "Corporate Risk Management" website has been...

  • Page 31
    ...Transparency NISSAN Annual Report 2012 Risk Management Measures and Actions 1. Risks Related to Financial Market 1) Liquidity Automotive The automotive business must have adeJuate liJuidity to provide for the working capital needs of day-today normal operations, capital investment needs for future...

  • Page 32
    ...NISSAN Annual Report 2012 2) Financial Market Nissan is exposed to various financial-market-related risks, such as foreign exchange, interest rate and commodity price. It is Nissan's general policy not to use derivative products as a primary tool to manage foreign exchange and commodity price risks...

  • Page 33
    ... vehicle is returned and sold in the used car market at the end of the contract term. To mitigate the risks mentioned above, Nissan objectively sets contractual residual value by using the future end-of-term market value estimation by a third party such as Automotive Lease Guide in North America...

  • Page 34
    ...Trust Through Transparency NISSAN Annual Report 2012 2. Risks related to Business Strategies and Maintenance of Competitiveness 1) Product Strategy To secure our profitability and sustainable growth based on our future product lineup plan, in our product strategy developing process, we monitor the...

  • Page 35
    ...& Power of brand Performance Corporate Data Corporate Governance 34 Maintaining Trust Through Transparency NISSAN Annual Report 2012 new models, as described above, the new framework represents a higher-level system to ensure successful Juality management for both on-going and future projects...

  • Page 36
    ... focuses Customers Plan Global Environment Management Committee PDCA Employees Business partners Environmental Advisory Meetings, etc. Act Global Environmental Planning Office Do PDCA Check PDCA Shareholders and investors Communities and future generations 4) Compliance and Reputation...

  • Page 37
    ... / Instruction Report Communications & CSR External & Government Affairs Human Resources Asset Management Finance Supply Chain Management Market & Sales Parts Logistics Affiliated Companies Administration Production Control Production Engineering Manufacturing HR Purchasing Information System...

  • Page 38
    ...brand Performance Corporate Data Corporate Governance 37 Maintaining Trust Through Transparency NISSAN Annual Report 2012 Additionally, based on the policy of contribution to local society, we reacted rapidly to provide rest space to people who could not return home on March 11 and to support...

  • Page 39
    Year 2 Power 88 Innovation & Power of brand Performance Corporate Data Corporate Governance 38 Maintaining Trust Through Transparency NISSAN Annual Report 2012 3 elements of production Risk factor HR/Workforce Purchased parts/ Raw materials Facilities/Equipment Natural disasters (...

  • Page 40
    ... 2 Power 88 Innovation & Power of brand Performance Corporate Data Corporate Governance 39 Maintaining Trust Through Transparency NISSAN Annual Report 2012 4) Supply Chain Continuity Control was enhanced as follows to prepare for increased supplier risk. Response to suppliers' financial risk...

  • Page 41
    ...Power of brand Performance Corporate Data Corporate Governance 40 Maintaining Trust Through Transparency NISSAN Annual Report 2012 • Transportation and storage of vehicles and products for sales This program covers risks relating to transportation and the supply chain for parts and products...

  • Page 42
    ...Report 2012 Financial Data To 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...