Nissan 2015 Annual Report Download - page 8

Joseph G. Peter
Chief Financial Officer
MESSAGE FROM THE CFO
Nissan Motor Corporation has reinforced its position as a leading global automotive company,
delivering solid business and financial results in fiscal 2014.
Despite challenging conditions in some regions, Nissan’s global unit sales in fiscal 2014 reached
5.32 million units, an all-time record.
In terms of our financial performance (based on the equity method of accounting for our China
Joint Venture), consolidated net revenues increased by 892.7 billion yen to 11.4 trillion yen. Operating
profit rose by 18.3% to 589.6 billion yen and net income grew by 17.6% to 457.6 billion yen.
Automotive free cash flow was a positive 365.8 billion yen and we continued to strengthen the
balance sheet ending the period with net cash of 1.4 trillion yen for our automotive business.
Our strong results reflect market growth in the US, Mexico, the UK, Russia and other parts of
Europe, where award-winning vehicles such as X-TRAIL and Qashqai continued to generate demand.
Orders for these and other new products compensated for difficult conditions in some other parts of
the world.
The results also reflect our continued focus on cost efficiency, which contributed 112.7 billion
yen in year-over-year operating profit improvement, mainly through our purchasing material cost-
reduction efforts.
On a management pro-forma basis – reflecting the proportional consolidation accounting method
of our joint venture in China, and which is consistent with the methodology used in developing the
Nissan Power 88 Mid-term Plan objectives – net revenues increased by 8.5% to 12.4 trillion yen. Pro-
forma operating profit rose by 18.6% to 718.6 billion yen. On this measure, we ended the fiscal period
with net cash from our automotive operations of 1.5 trillion yen.
The positive results in fiscal 2014 provide a solid base as we follow the path toward our Power
88 goals.
Looking toward fiscal 2015, we anticipate total industry volumes will increase slightly to 85.44
million units. Of that total, we project that Nissan’s global retail volumes will rise by 4.4% to 5.55 million
units, driven by anticipated strong demand for our new products and continued execution of our Power
88 mid-term plan strategies and related initiatives.
Given this volume outlook, we expect net revenues to grow by 6.4% to 12.10 trillion yen for the
12 months ending March 31, 2016, calculated under the equity accounting method for our joint
venture in China. Operating profit are targeted to reach 675 billion yen, representing a margin of 5.6%.
Net income is expected to reach 485 billion yen, an annual increase of 6%.
We will enhance enterprise value, maintain a strong balance
sheet and provide shareholders an attractive dividend.
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NISSAN MOTOR CORPORATION ANNUAL REPORT 2015
TOP MESSAGE
CONTENTS
NISSAN POWER 88
PERFORMANCE
CORPORATE GOVERNANCE
CORPORATE FACE TIME