Nissan 2012 Annual Report Download - page 9

Looking at the financial metrics, consolidated net revenues reached 9.4 trillion yen, up 7.2% from
the previous year. Operating profit stood at 545.8 billion yen and our net income was 341.4 billion yen—
both of these measures are above the fiscal 2010 levels despite the significant negative year-on-
year impact of the strong yen. Additionally, we generated strong automotive free cash flow of 379.5
billion yen. As a result, we increased our automotive net cash position to 619.8 billion yen. These
results are all the more striking when viewed in the context of the performance of the other
significant Japanese automotive companies during the same timeframe.
What are the main areas of your focus to ensure success for the plan?
Primarily, I will continue to work with Nissan’s leadership so that we can deliver exceptional results.
Nissan Power 88 represents an opportunity to grow our business, both geographically and in terms
of our products and technology. An important part of my job is making sure we have the capital for
this growth, which requires investment in new products, factories, distribution networks and sales
finance activities. In this regard, we will continue actions to sustain our free cash flow generation
and to strengthen our balance sheet.
Additionally, I will work with the management team to drive the achievement of benchmark
efficiency throughout our value chain. This involves close cooperation among Nissan’s leadership
and its teams to establish business models with clear objectives that will ensure that we meet our
mid-term goals.
How do you balance growth in market share and operating margin?
From my perspective, our goals of 8% market share and 8% operating profit margin are not things
to balance one against the other. When we pursue growth in sales volume or market share in the
right way, our premise is that it will lead to improved profitability. At Nissan, we have a disciplined
process in which investments are carefully scrutinized. We also have a robust business planning
process in which we review our strategies and investments, as well as risks and opportunities, in the
context of our changing business environment which allows us to identify parts of our plans that
need increased focus and ways to improve them. In this way, we can react to changing business
conditions in real time—a capability that has been successfully tested following the financial crisis
touched off in 2008 and in the wake of the natural disasters of 2011.
What are your thoughts on shareholder value?
The strategies and objectives of our mid-term business plan are designed to significantly enhance
shareholder value through business growth that drives higher revenue and profits as well as strong
sustained free cash flow generation. In this way we will enhance enterprise value while at the same
time maintaining a strong balance sheet and providing shareholders an attractive dividend.
Reflecting our confidence in the plan, and in spite of the current volatile and fragile global
economic environment, in May this year (2012) we announced our intention to increase the fiscal
2012 dividend by 25% to 25 yen per share. Over the Nissan Power 88 period, we have targeted a
minimum dividend payout ratio of 25% of net income, 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
Innovation & Power of brand
Year 2 Power 88
Performance Corporate Data Corporate Governance
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NISSAN Annual Report 2012Message from the CFO