Nissan 2015 Annual Report Download - page 9

On the “management pro-forma” basis (reflecting proportional consolidation of our China Joint
Venture), we anticipate net revenues will increase by 7% to 13.27 trillion yen. Operating profit is
forecast to grow by 16.2% to 835 billion yen, resulting in an operating profit margin of 6.3%. Net
income is predicted to grow 6% to 485 billion yen.
Our financial priorities remain focused on ensuring sustainable profitable growth, generating
positive automotive free cash flow and maintaining a strong balance sheet with sufficient levels
of liquidity.
We will also continue to invest with discipline. In recent years, Nissan has invested in capacity in
key markets for the mid- to long-term. We have expanded our manufacturing capacity, and we now are
poised to take advantage of the investments made during the first half of our mid-term plan.
Overall, this means that Nissan can look ahead with confidence and remains on the right path
towards the goals of our Power 88 mid-term plan.
This mid-term plan will see Nissan maintain its product offensive, following on from new models
launched in the last fiscal year. We also anticipate further progress in the luxury segment through
Infiniti and in emerging markets with our entry-level Datsun brand.
These efforts coincide with continued targeted investments in new technologies, particularly
autonomous drive systems, and our continued deployment of the world’s best-selling zero-emission
electric vehicles. Progress in these areas will complement continued contributions from our Alliance
strategy, which is forecast to deliver increased synergies and global scale as we cooperate more
closely in converged functions.
Reflecting confidence in our mid-term plan and based on our healthy financial position and
outlook for fiscal year 2015, including continued solidly positive free cash flow generation, we
announced in May this year our intention to increase the dividend by 27% to 42 yen per share for
fiscal 2015.
As we’ve stated previously, our dividend policy for the remainder of the mid-term plan period
targets a minimum pay-out ratio of 30% of net income. This reflects our recognition – shared by asset
managers – that Nissan should continue to deliver an attractive return to shareholders.
In conclusion, our mid-term business plan is designed to significantly enhance shareholder value
through business growth that drives higher revenue, profits and strong sustained free cash flow
generation. We will enhance enterprise value, maintain a strong balance sheet and provide
shareholders an attractive dividend.
Success in meeting our Power 88 goals should allow Nissan to continue to enhance returns to
shareholders, realized through increased dividends and an improved market valuation.
Joseph G. Peter
Chief Financial Officer
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NISSAN MOTOR CORPORATION ANNUAL REPORT 2015
TOP MESSAGE
CONTENTS
NISSAN POWER 88
PERFORMANCE
CORPORATE GOVERNANCE
CORPORATE FACE TIME