fiscal year 2020 first-quarter financial results · 2020. 8. 18. · 15.10 22.07 827 *1: nissan...

FISCAL YEAR 2020FIRST-QUARTER FINANCIAL RESULTS

Nissan Motor Co., Ltd. July 28th, 2020

2

AGENDA

FY20 1Q RESULTS

FY20 OUTLOOK

NISSAN NEXT

3

887 437

375

390

FY20 1ST QUARTER SALES PERFORMANCE

CHINA

NORTHAMERICA

(U.S.)

EUROPE

OTHERS

JAPAN -31.8%

-43.9%

-36.0%(-33.7%)

-50.8%

-51.0%

GLOBAL

vs. FY19

-44.5%

TIV *1

4.512.21

5.47

2.69

5.31

3.39

5.98

3.36

1.23

0.84

(MIL

LIO

N U

NIT

S)

FY201Q

FY191Q

CHINA

NORTHAMERICA

(U.S.)EUROPEOTHERS

JAPAN -33.7%

-39.9%

-50.8%(-49.5%)

-60.1%-55.9%

GLOBAL

17477

135

54

452

222

344

207

126

84

vs. FY19

(TH

OU

SAN

D U

NIT

S)

(4.43)

(2.94)

(351)

(177)

1,231

-47.7%12.49

5.5%M/S*2

5.2%M/S*2

RETAIL VOLUME

FY201Q

FY191Q

22.50

643

GLOBAL(excl. China)-44.7%

GLOBAL(excl. China)-50.8%

CHINA

GLOBAL(excl. China)

+7.5%

-44.7%

vs. 2019

16.51 9.13

5.55

5.97

(MIL

LIO

N U

NIT

S)

2020APR – JUN

2019APR – JUN

GLOBAL

vs. 2019

(TH

OU

SAN

D U

NIT

S)

1,262

-34.5%15.10

2020APR – JUN

2019APR – JUN

22.07

827

*1: Nissan estimation*2: Market share*3: Market share without US rental

GLOBAL(excl. China) -50.8%

CHINA +4.1%

China Apr-Jun base

China Jan-Mar base

M/S*3 5.4%

M/S*3 5.4%GLOBAL -31.6%

4

PRODUCTION STATUS

FY19 Apr.

FY20Apr.

56.7

(TH

OU

SAN

D U

NIT

S)

21.7

60.9

13.0

63.7

JAPAN

NORTH AMERICA EUROPE

FY19 May

FY20May

FY19 Jun.

FY20Jun.

114.8

(TH

OU

SAN

D U

NIT

S)

0.0

132.7106.7

44.4

(TH

OU

SAN

D U

NIT

S)

0.5

46.2

2.1

41.7

25.0

61.1

CHINA

(TH

OU

SAN

D U

NIT

S)

342.5

168.5

379.7

FY19 1Q(Jan.

to Mar.)

FY201Q(Jan.

to Mar.)

FY19 2Q

(Apr. to Jun.)

FY202Q

(Apr. to Jun.)

8.4

407.7

FY19 Apr.

FY20Apr.

FY19 May

FY20May

FY19 Jun.

FY20Jun.

FY19 Apr.

FY20Apr.

FY19 May

FY20May

FY19 Jun.

FY20Jun.

4.0

5

OPERATIONAL STATUS OF SALES OUTLETS

Apr

JAPAN

May Jun

100% 100% 100%

OU

TLET

S O

PEN

CHINAO

UTL

ETS

OPE

N

NORTH AMERICA

64%

92%

EUROPE

35%

80%

* Nissan + Infiniti

* Nissan + Venucia + Infiniti

OU

TLET

S O

PEN

20’ Mar

100% 100% 100% 100%100%

69%82%

OU

TLET

S O

PEN

98%

4%

* G5+Russia (Nissan + Infiniti)

Apr May Jun20’ Mar

Apr May Jun20’ MarApr May Jun20’ Mar

6

START OF PRODUCTION OF NEW MODELS

Kicks e-POWER

New Rogue

Sentra

THI production for JPN / AsiaMar 2020 (SOP)

JPN production for USA / CANJun 2020 (SOP)

MEXFeb 2020 (SOP) / Jun 2020 (SOS)

Note) SOP : start of production, SOS : start of sales

7

SALES PERFORMANCE IN CORE MARKETSJA

PAN

Total M/S* Registered car M/S* Kei car M/S*

Significant increase in Kei share driven by Nissan ROOX introduced in March

Upward trend in registered car share expected to increase further with introduction of Nissan Kicks e-POWER

CH

INA

US

(Nis

san

Bra

nd O

nly)

Retail (excl. fleet) M/S* Fleet ratio

Post COVID-19 lockdown, YoY sales volume growth for 3 consecutive months from April to June

Sales recovery driven by strong sales performance of Sylphy and Altima

Excluding fleet, Nissan’s retail market share improved from April to June

Significant decrease in fleet volume to drive profitability

Net revenue / unit improved thanks to new Sentra, Versa, and Titan

Retail volumeTotal M/S*

* Market share

* FY20 1H M/S: 6.4%(+0.2pt vs FY19 1H)

Net revenue / unit

8

FY20 1ST QUARTER FINANCIAL PERFORMANCE(TSE REPORT BASIS — CHINA JV EQUITY BASIS)

(BILLION YEN) FY19 1Q

FY201Q VARIANCE CHANGE

vs. FY19 (%)

NET REVENUE 2,372.4 1,174.2 -1,198.2 -50.5%

OPERATING PROFITOP MARGINNON-OPERATING

1.60.1%33.7

-153.9-13.1%

-78.4

-155.5 -

ORDINARY PROFITEXTRAORDINARY

35.3-8.4

-232.3-72.3

-267.6 -

PROFIT BEFORE TAXTAXESEFFECTIVE TAX RATEMINORITY INTEREST *3

26.9-16.7

61.9%-3.8

-304.620.36.7%-1.3

-331.5 -

NET INCOME *4 6.4 -285.6 -292.0 -

FREE CASH FLOW (AUTO) -385.5 -815.7 -430.2 -111.6%

FX RATE 109.9123.5

107.6118.6

-2.3-4.9

*1: Includes loss in companies under equity method -84.7 billion yen*2: Includes loss on shutdowns and others due to COVID-19 (net) -33.2 billion yen and restructuring charges -40.1 billion yen*3: Net income attributable to non-controlling interests *4: Net income attributable to owners of the parent

(USD/JPY)(EUR/JPY)

*1

*2

9


OPERATING PROFIT VARIANCE ANALYSIS

FY20 1Q O.P.

FY19 1Q O.P.

FOREX MONOZUKURI / FIXED COST *2 /

OTHER

(BILLION YEN)

+3.5

+37.3

VOLUME & MIX *1/ PARTS SALES / CONSOLIDATED

DEALER

+35.9

EXTERNAL / SALES VOLUME

SELLING EXPENSE /

COST

*1 : Includes volume impact on incentives*2 : Excludes fixed marketing expense, which is included in selling expense / cost

EXPENSE/COST

1.6 -232.2 -153.9

10

LIQUIDITY STATUS

1. Auto cash and cash equivalent: 1,267.0 billion yen*Auto net cash: 235.2 billion yen*

3. Bond issuance in Japan in July 2020: 70 billion yen

2. Funding in response to COVID-19: Additional 182.4 billion yen in June/July 2020 (FY20 YTD total: 895.0 billion yen)

*as of end of June 2020, China JV equity basis,Auto cash and cash equivalent : 1,534.5 billion yen, auto net cash : 503.3 billion yen in management pro forma basis

4. Unused committed credit lines : approx. 1.9 trillion yen as of end of June 2020

11

AGENDA

FY20 1Q RESULTS

FY20 OUTLOOK

NISSAN NEXT

12

708 495

521 400

1,620

1,235

534

520

1,547

1,475

FY20 SALES OUTLOOK

CHINA

NORTHAMERICA

(U.S.)

EUROPE

OTHERS

JAPAN -7.4%

-7.8%

-21.2%(-21.4%)

-17.4%

-22.3%

GLOBALvs. FY19-16.0%

TIV *1

17.59 13.66

19.12

15.80

19.67

15.50

5.04

4.67

24.31

22.41

(MIL

LIO

N U

NIT

S)

FY20OUTLOOK

FY19ACTUAL

CHINA

NORTHAMERICA

(U.S.)

EUROPE

OTHERS

JAPAN -2.7%

-4.6%

-23.8%

(-24.0%)

-23.2%

-30.1%

GLOBAL

vs. FY19

(TH

OU

SAN

D U

NIT

S)

(16.55)

(13.00)

4,930

-16.3%72.04

5.75%M/S*2

5.73%M/S*2

*1: Nissan estimation*2: Market share

RETAIL VOLUME

FY20OUTLOOK

FY19ACTUAL

85.73

4,125

FY20 outlook based on assumption of no 2nd wave from COVID-19 pandemic

GLOBAL(excl. China)

-19.2%

GLOBAL(excl. China)

-21.7%

(1,237)

(940)

13

FY20 OUTLOOK(TSE REPORT BASIS — CHINA JV EQUITY BASIS)

(BILLION YEN) FY19ACTUAL

FY20OUTLOOK

VARIANCE CHANGEvs. FY19 (%)

RETAIL VOLUME (K. units) 4,930 4,125 -805 -16.3%

RETAIL VOLUME (K. units)

excluding China 3,383 2,650 -733 -21.7%

NET REVENUE 9,878.9 7,800.0 -2,078.9 -21.0%

OPERATING PROFITOP MARGIN

-40.5-0.4%

-470.0-6.0%

-429.5

NET INCOME *1 -671.2 -670.0 +1.2 +0.2%

FX RATE *2108.7120.8

105.7119.6

-3.0-1.2

(USD/JPY)

(EUR/JPY)

*1: Net income attributable to owners of the parent*2: FX rate assumption after 2Q is 105 yen for USD / JPY and 120 yen for EUR / JPY

14

FY20 OUTLOOK(TSE REPORT BASIS — CHINA JV EQUITY BASIS)

(BILLION YEN)OPERATING PROFIT VARIANCE ANALYSIS

FOREX FY19 ACTUAL

O.P.

FY20 OUTLOOK

O.P.

-40.5 -40.0-425.0

+120.5

-470.0

MONOZUKURI / FIXED COST /

OTHER

SALES FINANCE / REMARKETING *2

-85.0

*1 : Includes volume impact on incentives*2 : Losses in lease residual values for vehicles primarily in the US

VOLUME & MIX *1/ PARTS SALES / CONSOLIDATED

DEALER

15

AGENDA

FY20 1Q RESULTS

FY20 OUTLOOK

NISSAN NEXT

16

NISSAN NEXT GOALS

STRATEGIC GOALS

Capitalize on core competencies Enhance quality of business Ensure financial discipline

Ensure steady, profitable growth

Restore Nissan-ness

FY20-23 TRANSFORMATION PLAN

17

Prioritize & Focus

Foundation

Rationalize

Core MarketsJapan, China, North America

Core TechnologiesElectrification / Advanced Driver Assist

Core ProductsC/D/EV/Sports

Leverage the Alliance new business modelStrengthen business partnerships

Our DNA / Our Culture / Quality & Customer Focus

Right-sizing Production Capacity

20% reduction / utilization ratio >80%

Fixed Cost reduction-300 billion yen vs. FY18

Streamlining product portfolio20% reduction, product age < 4 years

A NEW ROADMAP FOR SUSTAINABLE GROWTH

18

Frontier

Kicks e-POWER

Nissan Magnite

Rogue QX55QX60

Ariya Pathfinder

PRODUCT MOMENTUM: 12 NEW MODELS

Photo: Nissan Magnite concept

19

NEW CHAPTER FOR NISSAN

20

FY20-23 TRANSFORMATION PLAN

21

Appendix

22

Asset Backed Securities

28.0%

Bank Loans32.1%

Bonds17.8%

Equity15.6%

Commercial Paper & Other6.5%

FUNDING SOURCES AS OF JUNE 2020• Strong profit and penetration results

• Credit losses expected to increase as payment deferrals for consumers end

• Strong liquidity

• Diversified funding and strong equity position

NET REVENUE

OPERATING PROFIT

TOTAL ASSETS

PENETRATION NET CREDIT LOSS RATIO

298.5263.9

(BILLION YEN)

FY191Q

FY201Q

56.463.0

FY191Q

FY201Q

10,367.79,234.6

FY191Q

FY201Q

45% 48%

FY191Q

FY201Q

1.04% 0.79%

FY191Q

FY201Q

TOTAL FUNDING AMOUNT: 8,479 BILLION YEN

23

SALES FINANCING PENETRATION

NFS: Nissan Financial Services, sales finance company in JapanNMAC: Nissan Motor Acceptance Corporation, sales finance company in USNCF: Sales Financing division of Nissan Canada Inc.NRFM: NR Finance Mexico, sales finance company in Mexico

26% 28% 27% 27%39%

26%39%

48%4% 6%

33%25%

37%

19%3%

1%

FY191Q

FY201Q

FY191Q

FY201Q

FY191Q

FY201Q

FY191Q

FY201Q

100

90

80

70

60

50

40

30

20

10

0

LEASE

RETAIL

NFS NMAC NCF NRFM(%)

24

SALES FINANCING NET CREDIT LOSS RATIO

FY191Q

FY201Q VARIANCE

NFS

NMAC

NCF

NFS: Nissan Financial Services, sales finance company in JapanNMAC: Nissan Motor Acceptance Corporation, sales finance company in USNCF: Sales Finance division of Nissan Canada Inc.

Total: 1.13%

Lease:1.69%Retail:0.47%

Total: 0.07%


Total: 0.11%


Total: 0.07%


Total: 0.96%


Total: 0.15%


Total: 0.00%


Total: -0.17%

Lease:-0.51%Retail:

+0.23%

Total: +0.04%

Lease:+0.05%Retail:+0.03%

＊FY20 1Q net credit loss ratio for NMAC is based on new definition, which exclude vehicle repossession charges. Without the change, net credit loss ratio for FY20 1Q would have been 0.76% for lease,1.24% for retail and 1.02% for total.

*

*

*

25

SALES FINANCING OPERATING PROFIT & ASSET

FY191Q

FY201Q VARIANCE

NFS

NMAC

NCF

NRFM

NFS: Nissan Financial Services, sales finance company in JapanNMAC: Nissan Motor Acceptance Corporation, sales finance company in USNCF: Sales Financing division of Nissan Canada Inc.NRFM: NR finance Mexico, sales finance company in Mexico

(NFS : billion yen, NMAC : million USD, NCF : million CAD, NRFM : million MXN)

Asset:10.1OP:

1,434.2

Asset:228OP:

59,979

Asset:55OP:

8,656

Asset:518OP:

113,887

Asset:8.6OP:

1,380.8

Asset:273OP:

52,181

Asset:54OP:

8,546

Asset:1,049OP:

116,859

Asset:-1.5OP:

-53.4

Asset:+45OP:

-7,798

Asset:-1OP:

-110

Asset:+531OP:

+2,972

26

HEADLINE FINANCIAL RESULTS(TSE REPORT BASIS — CHINA JV EQUITY BASIS)

NET REVENUE

OPERATING PROFIT

NET INCOME

FREECASH FLOW

(AUTO)

NET CASH(AUTO)

2,372.4

1,174.2

1.6 -153.9 -285.6 -385.5

1,000.3

235.2

(BILLION YEN)

FY191Q

FY201Q

FY191Q

FY201Q

FY191Q

FY201Q

FY191Q

FY201Q

FY191Q

FY201Q

-815.7

*1

6.4

*1: Net income attributable to owners of parent*2: Based on continuation of proportionate consolidation of China JV

2,667.1 1,325.8 40.1 -136.0 6.4 -285.6 -388.9 1,311.4-883.7 503.3MANAGEMENT PRO FORMA BASIS *2:

LOSS IN COMPANIES

UNDER EQUITY METHOD

-84.7-200.9

27


JPN -22.3

US -90.6

EUR -29.8

MEX&CAN -9.6OTHERS -23.4

VOL*1: -68.4MIX: +0.5

INCENTIVES*2: +38.1

VOL*1: -215.6MIX: +4.9

INCENTIVES*2: +120.1

VOL*1: -23.5MIX: -2.4

INCENTIVES*2: +3.6

(BILLION YEN)OPERATING PROFIT VARIANCE ANALYSIS

FOREIGN EXCHANGE IMPACT

CAD -1.2 (82.2 ⇒ 77.7)

USD -1.0 (109.9 ⇒ 107.6)

ARS -0.9 (2.51 ⇒ 1.59)

RUB -0.5 (1.70 ⇒ 1.49)

MXN +3.9 (5.75 ⇒ 4.63)

CNY +1.5 (16.1 ⇒ 15.6)

THB +0.6 (3.48 ⇒ 3.37)

OTHERS +1.1

+3.5

VOLUME/MIX

-175.7

SELLINGEXPENSES

+35.9JPN +1.6 INCENTIVES: -0.1

OTHERS: +1.7

US +7.9 INCENTIVES: -14.8OTHERS: +22.7

EUR +8.4 INCENTIVES: +0.7OTHERS: +7.7

MEX&CAN +2.1

OTHERS +15.9

*1: Includes country mix*2: Volume impact on incentives

28


(BILLION YEN)FREE CASH FLOW (AUTO BUSINESS)

-47.7 -108.0

-711.2

NET CASHINFLOW

FROM P&LITEMS

AP / AR INVENTORY TAX /OTHER

OPERATINGACTIVITIES

CASH FLOWFROM

OPERATINGACTIVITIES

CAPEX * OTHERS FREECASHFLOW

+3.5

-815.7

+157.6

-202.9

-618.2

* CAPEX does not include finance lease-related investments

29

(EXCLUDING CHINA JV)

830 810 830 800

580

0

200

400

600

800

1,000

2019Jun. Sep. Dec.

2020Mar.

2020Jun.

Consolidated Nissan inventory, except some minor countriesDealer inventory, except some minor countries

INVENTORY STATUS(THOUSAND UNITS)

30

NET CASH BY BUSINESS SEGMENT(TSE REPORT BASIS — CHINA JV EQUITY BASIS)

(BILLION YEN)

AS OF MARCH 31, 2020 AS OF JUNE 30, 2020

AUTOMOBILE&

ELIMINATIONSSALES

FINANCING TOTALAUTOMOBILE

&ELIMINATIONS

SALESFINANCING TOTAL

BORROWINGSFROMTHIRD PARTIES

874.3 7,033.7 7,908.0 1,394.5 6,539.5 7,934.0

INTERNAL LOANTO SALESFINANCING (NET)

-444.3 444.3 0 -362.7 362.7 0

CASH ANDCASH EQUIVALENT 1,494.6 148.4 1,643.0 1,267.0 193.7 1,460.7

NET CASH 1,064.6 -7,329.6 -6,265.0 235.2 -6,708.5 -6,473.3

31

This presentation contains forward-looking statements, based on judgments andestimates that have been made on the basis of currently available information. Bynature, such statements are subject to uncertainty and risk. Therefore, you are advisedthat the final results might be significantly different from the aforementionedstatements due to changes in economic environments related to our business, markettrends and exchange rate, etc.

fiscal year 2020 first-quarter financial results · 2020. 8. 18. · 15.10 22.07 827 *1: nissan...

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