Nissan: Fiscal Year 2015 third-quarter financial formula media conference: Remarks from Joji Tagawa, Corporate Vice President, Nissan Motor Co., Ltd.

Nissan Q3 Boosted by North America, W.Europe

 

Nissan delivered plain financial and operational formula for a 9 month period. Our formula reflected clever opening in North America and Western Europe, that homogeneous sensitivity in unfamiliar sell rates, including a alleviation of a yen/US dollar tailwind, and disappearing marketplace conditions in several rising markets.

For a nine-month duration finale Dec 31st of 2015, Nissan is stating sum net revenues of 8.94 trillion yen and handling distinction of 587.5 billion yen. This equates to an handling domain of 6.6%. Net income rose to 452.8 billion yen, that represents a 5.1% net margin. Unit sales, revenues and net income all reached record highs for a nine-month period. Nissan finished a duration with an Automotive net money position of 1.4 trillion yen, a arise of some-more than 222 billion yen compared to a turn during a same indicate in mercantile year 2014.

FY15 BUSINESS UPDATE

Nissan confirmed a US product descent by rising a all-new Titan XD pick-up truck, that was named “Best Pickup Truck of 2016” by Cars.com and PickupTrucks.com. The interest of a Titan was reinforced during a new North American International Auto Show in Detroit, where we denounced a Warrior concept, a mutated super-sized prophesy of how Nissan could redefine a full distance pickup segment. Further variations of Titan’s prolongation indication will be introduced via of this year.

The TITAN builds on a clever indication operation in a U.S., where a 2016 Rogue was named ‘Family Car of a Year’ by Cars.com.

Our reward code Infiniti had a record-breaking year in calendar 2015 with tellurian sales of 215,250 vehicles, adult 16% from a before year. The US continues to be a largest marketplace for Infiniti with section sales augmenting by 14% to 133,500 units for a 2015 calendar year.

The Infiniti choice now has been stretched with a start of sales of a new Q30 active compress in Europe, that is a brand’s initial car made in Europe during a Sunderland plant in Britain.

The Infiniti operation will be serve extended in 2016 with a launch of a QX30 reward active crossover.  While sales of these new vehicles will start in Europe, they will also be exported to other markets including a US and China in 2016.

Last month during a Detroit show, we denounced a new Q60 sports coupe, that reflects a brand’s multiple of performance, magnificence and driver-focused design.

Our product descent also continues with Datsun. This year, a new indication utilizing a A-segment design from a Renault-Nissan Alliance Common Module Family, will be introduced underneath a Datsun lineup in India.

As formerly announced, Interbrand again named Nissan as one of a world’s many essential brands for 2015. Nissan ranked 49, adult from 56 in 2014 and is a fastest-rising automotive code in a study. Around a world, we have sum a product descent with desirous offered and sports partnerships, including Nissan Brazil’s partnership with a Rio 2016 Olympic and Paralympics Games, a UEFA Champions League and a International Cricket Council. Last November, we extended a sports-marketing efforts with a ancestral understanding to turn a Official Sponsor of 100 US colleges and universities, and we will also support name NCAA Championships. The four-year agreement is a many inclusive sponsorship in a story of US collegiate sports.

These efforts simulate a integrity to lift a company’s form and code prominence in countless markets.

The Nissan code is increasingly compared with breakthrough products, of that a zero-emission Nissan LEAF stays a flagship. Last month, we delivered a 200,000th Nissan LEAF, creation it a world’s many renouned and successful electric vehicle.

We design a recognition of a Nissan LEAF to boost even serve interjection to a 2016 model, that is versed with a new 30 kilowatt battery that delivers some-more than a 20% prolongation to pushing range. Following a start of sales in a US in November, a latest Nissan LEAF went on sale in Japan in December. The Nissan LEAF also went on sale in Europe final month.

In December, we announced skeleton to join army with BMW in a US to offer open fast-charging during 120 locations opposite 19 states, that will advantage Nissan LEAF and BMW i3 business and support a augmenting adoption of electric vehicles nationwide. This shows a enlargement of team-work with BMW, following a agreement with them for an EV charging infrastructure in South Africa in May 2015.

And final month, we announced that this partnership had been extended to Mexico to offer business entrance to some-more than 150 charging stations in a country. This partnership between Nissan and BMW, that are dual heading EV manufacturers, will accommodate flourishing direct for additional open fast-charging options, enabling drivers to extend their zero-emission journeys.

Our EV care underlines a joining to move new technologies to market. This includes a ambitions in unconstrained expostulate systems. Last month, during a investigate core in Silicon Valley, we announced that a Renault-Nissan Alliance will launch some-more than 10 vehicles with unconstrained expostulate record by 2020.

This operation of vehicles with unconstrained capabilities – including “multiple-lane control” and “intersection autonomy” – will be launched in a US, Europe, Japan and China.

Alongside such next-generation technology, a association continues to labour and launch highly-efficient new engines. These embody one of a lightest, many powerful, cleanest and many fuel-efficient V6 that we have ever offered, prolongation of that will start in 2016 for a Infiniti code during a powertrain plant in Iwaki, Japan.

Our Alliance stays a heading force in a tellurian automotive industry. In a calendar year 2015, we underlined a tellurian scale with section sales opposite a Alliance of 8.5 million units.

As formerly announced, a Renault-Nissan Alliance is on lane to broach annualized synergies of 4.3 billion euro in 2016, reflecting a advantages of a converged functions in areas such as engineering, production and purchasing.

This compares with annual synergies that stood during 1.5 billion euro 5 years ago.

We also announced a series of new initiatives in a final nine-month period, including skeleton for a Renault lorry formed on a Nissan Navarra, that will also be used by a partners during Daimler for a new Mercedes model. And we began construction of a corner public plant, subsequent to a Nissan plant in Aguascalientes in Mexico, where Infiniti and Mercedes vehicles will be assembled.

FY15 THIRD-QUARTER SALES PERFORMANCE

 For a 9 months finale Dec 31, altogether tellurian attention volumes augmenting 1.4% to 64.28 million units. Nissan’s altogether sales formula augmenting 1.4% – in line with a marketplace – to 3.89 million units in a initial 3 buliding of a mercantile year, as clever expansion in North America and Western Europe that out-performed a altogether attention was homogeneous by headwinds in other markets.

Looking opposite a regions….

In Japan, a Total Industry Volume – or TIV – fell by 6.7%, to 3.47 million units, display a impact of aloft sales taxes and churned consumer confidence. Nissan’s sales decreased 8.2% to 383,000 section sales, ensuing in a marketplace share of 11.0%.
Notwithstanding a altogether volume decrease in Japan, we are speedy by a clever direct in a marketplace for a X-Trail, quite for a hybrid version.

In China, a TIV in a calendar 9 months to Sep 30 augmenting 1.7% to roughly 16.4 million units. Nissan sales augmenting 1.8% to 859,000 units. For a calendar year, Chinese TIV augmenting 6.0% to 23.68 million units, while Nissan’s sales reached 1.25 million units, homogeneous to a marketplace share of 5.3%. In a fourth entertain alone, a sales augmenting 17.6% as new product launches contributed to an augmenting sales momentum. As a result, we achieved a calendar year sales opinion for China announced final November.

Turning to North America: In a US, a TIV augmenting 5.8% to 13.52 million units. Nissan’s sales volume invariably out-performed a marketplace by augmenting 8.3% to 1.12 million units, driven by direct for a Rogue and Altima models. Market share softened 0.2 points to 8.3% in a US. Meanwhile, in Canada, sales were adult 13.0% to 104,000 units. In Mexico, section sales augmenting 16.9% to 267,000 units for a duration and Nissan confirmed a series 1 position with a healthy marketplace share of 25.6%. Nissan has been series one in Mexico now for 79 uninterrupted months.

In Europe, Nissan’s sales augmenting somewhat by 1.1% to 540,000 units and marketplace share decreased somewhat to 4.0%. Here we will note that a decrease in marketplace share was due to nation mix, as marketplace share indeed augmenting in both Europe incompatible Russia and Russia – a slight altogether dump in marketplace share was due to a decreased weight of a Russian marketplace of sum European sales. In Europe incompatible Russia, TIV augmenting strongly with section volumes reaching 12.29 million units. Nissan saw sell sales volumes strech 450,000 units in a period, and a marketplace share softened somewhat to 3.7%. For a calendar year, Nissan was a series one Asian code in a European Union. The Nissan LEAF is also a top offered EV in a European marketplace of all time.

In Russia, a weakening of a ruble and mercantile doubt has undermined direct in this market. Nissan’s sales decreased 32.7% to 90,000 section sales, homogeneous to a 7.4% marketplace share.

In other markets – including ASEAN, Africa and Latin America – mercantile conditions remained volatile. Nissan’s sales volumes declined to 619,000. Asia and Oceania volume was down 1.5% during 263,000 units. Latin America fell 7.9% to 130,000 units, Middle East fell by 10.5% to 151,000 units and sales in Africa augmenting by 1.3% to 75,000 units.

FY15 THIRD-QUARTER FINANCIAL PERFORMANCE

Under a equity accounting process for a corner try in China, sum net revenues augmenting by 854.5 billion yen to 8.94 trillion yen, essentially driven by flourishing section sales in a US and Western Europe and a impacts of unfamiliar banking translation.

Consolidated handling distinction totaled 587.5 billion yen, agreeable a 6.6% handling margin. Net income was 452.8 billion yen, adult 33.7% from a same duration of mercantile 2014.

Looking during a Operating Profit transformation in detail:

  • The 19.8 billion yen auspicious impact from unfamiliar sell came from a continued improvement of a yen opposite a U.S. dollar, homogeneous by a transformation of rising currencies.
  • Cost equipment including purchasing cost rebate efforts, reduce tender element costs and product improvement resulted in net assets of 142.3 billion yen.
  • Volume and brew constructed a certain impact of 131.0 billion yen.
  • The boost in offered and offered losses resulted in a 88.1 billion yen disastrous movement.
  • RD losses augmenting by 2.7 billion yen.
  • Manufacturing losses augmenting by 10.2 billion yen, and
  • Other equipment had a disastrous impact of 22.5 billion yen.

At a finish of a period, Nissan continued to be in an automotive net money position of 1.4 trillion yen, compared with 1.2 trillion yen during a finish of Dec 2014.

On a government pro forma basis, that includes a proportional converging of formula from Nissan’s corner try operation in China, revenues for a mercantile 9 month duration rose 10.5% to 9.72 trillion yen. Operating distinction was adult 32.1% to 682.6 billion yen, ensuing in an handling domain of 7.0%. Net income rose 33.7% to 452.8 billion yen.

FY15 OUTLOOK

Based on a nine-month opening and a opinion on marketplace conditions for a residue of a mercantile year, we are progressing a before financial forecasts for a 12 months finale Mar 31, 2016.

Here, we design plain direct for new models and a enlivening transformation in North America and Western Europe sum with continued cost efficiencies to homogeneous adverse marketplace and unfamiliar sell conditions essentially in rising markets.

The advantages of a product offensive, a financial fortify and a Alliance synergies meant that Nissan can continue to govern on a devise and swell towards a Power 88 goals.

CONCLUSION

We also design to beget clever certain giveaway money upsurge and sojourn committed to a division remuneration of 42 yen for a mercantile year. As formerly announced, Nissan will say a smallest 30% payout ratio to net income during a residue of a mid-term plan.

In conclusion, Nissan continues to broach on a Power 88 plan and stays committed to improving a business performance. Despite severe altogether marketplace conditions, a alleviation of a yen/US dollar sell rate, sensitivity in line and adverse unfamiliar sell rates from rising markets, we sojourn on lane to grasp another year of plain essential growth.

*As of a commencement of mercantile year 2015, “net income” means “net income attributable to owners of a parent”.

 

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