Nissan 2016 Annual Report Download - page 6

Carlos Ghosn
President and Chief Executive Officer
DEAR FELLOW SHAREHOLDERS
Fiscal 2015 was a year of continued progress at Nissan Motor Corporation (NMC). Once again we
delivered solid financial results for our shareholders by launching innovative vehicles, pioneering new
technologies and disciplined focus on cost-efficiency.
I would like to thank all of our employees, our suppliers, dealers, Alliance partners and my
management colleagues for their contribution to our strong financial performance this year. Our
results reflect Nissan’s underlying quality and resilience, and I look ahead with bright optimism–for
our customers, for our employees, and of course, for our shareholders.
Driving Shareholder Returns
As a global team, we have worked together to design, develop, assemble, market, sell and service a
range of vehicles with strong customer appeal. This helped to drive strong demand in North America
and a satisfactory performance in Europe, excluding the significant market contraction in Russia.
Together with continued cost efficiencies and Alliance synergies, this helped offset the negative
impact of adverse currency movements and volatile conditions in some of the other markets.
This, in turn, has produced robust shareholder returns. Over the past five years, our annual
dividend payment has more than doubled: rising from 20 yen per share in fiscal 2011 to a proposed
payout of 48 yen per share for fiscal 2016. This represents a 14.3% increase on the fiscal 2015
dividend payment. In February 2016, we further underlined our commitment to total shareholder
returns by announcing a share buy-back worth up to 400 billion yen.
As set out in the detailed financial statements in this Annual Report, the Company increased
revenues by 7.2% to 12.2 trillion yen in the 12 months to March 31, 2016, and generated sharply
increased operating profits of 793.3 billion yen. Net income rose by 14.5% to 523.8 billion.
Pathway to Power 88
Our confidence reflects the progress that Nissan has achieved since launching the Power 88 plan five
years ago. Since then, our annual unit sales have increased by more than 1.2 million units to 5.4 million.
In spite of several challenges in recent years – from emerging market and currency volatility to
geo-political tensions – our continued focus on cost efficiencies and our ongoing product offensive
have helped lift operating margins towards the 7% level reported for the latest fiscal year. This signals
that we are on the right path toward the goal of a sustainable 8% operating profit margin.
Products & Efficiency
We are far from complacent. We must continue to launch strong new products and relentlessly improve
efficiency and quality.
This is particularly important in Japan where we are refreshing some core models, notably with the
launch of a new compact car featuring our latest electric vehicle powertrain.
This new electric vehicle will meet consumer demand for greater autonomy and fuel efficiency,
utilizing a new “e-Power” system that matches the agility, quietness, strong acceleration and efficiency
of the Nissan LEAF.
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NISSAN MOTOR CORPORATION ANNUAL REPORT 2016
TOP MESSAGE
CONTENTS
CORPORATE FACE TIME
NISSAN POWER 88
PERFORMANCE
CORPORATE GOVERNANCE