Nissan 2014 Annual Report Download - page 29

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498.4 -55.0 +25.0
+85.0 –18.4 535.0
Impact on Operating Profits (FY2014 Outlook) (China JV Equity basis)
(Billions of yen)
Operating profit variance analysis
l A negative foreign exchange movement of 55 billion yen;
l An improvement in sales and marketing of 25 billion yen;
l An 85 billion yen improvement in monozukuri;
l And an increase in G&A and other costs of 18.4 billion yen.
Under the forecast of consolidated operating results for fiscal 2014, the consolidation method of
Dongfeng Motor Co., Ltd. is changed from a proportionate consolidation to the equity method in
comparison with the results until fiscal 2012 by the adoption of IFRS 11. This change has no impact on
net income though there are effects on net sales, operating income and ordinary income.
(All figures for fiscal 2014 are forecasts, as of May 12, 2014.)
FISCAL 2014 OUTLOOK (CHINA JV EQUITY BASIS)
In our outlook for fiscal 2014, we expect our global sales to reach 5.65 million units, an increase of
8.9%.
With a total industry volume assumption of 84.42 million units, a 1.6 % increase year on year, our
global market share is expected to grow from 6.2% to 6.7%.
In consequence of our plan, financial forecast is as follows. We have used a foreign exchange rate
assumption of 100 yen to the dollar and 140 yen to the euro:
<FY 2014 Nissan’s Outlook>
n Net sales 10.79 trillion yen
n Operating income 535.0 billion yen
n Net income 405.0 billion yen
Nissan is on track to grow to 5.65 million units during fiscal year 2014 – which will move us toward our
objective of an 8% global market share by fiscal year 2016 to achieve Nissan Power 88. In support of this
growth plan, necessary investments in R&D and capital expenditures are being made to support the
long-term expansion of the company.
With these factors included, the expected variance in operating profit between 2013 and 2014 is
broken down as follows:
FY13
O.P.
Actual
M&S MonozukuriFOREX G&A
and
other costs
FY14
O.P.
Outlook
28
NISSAN MOTOR CORPORATION ANNUAL REPORT 2014
PERFORMANCE
CONTENTS
CORPORATE FACE TIME
CEO MESSAGE
EXECUTIVE PROFILE
NISSAN POWER 88
CORPORATE GOVERNANCE