NISSAN REPORTS NET INCOME OF $3.88 BILLION (¥389.0 BILLION) FOR FY2013

May 12, 2014 by Nissan

YOKOHAMA, Japan – Nissan Motor Co., Ltd. today announced financial results for the 12-months and fourth quarter ending March 31, 2014, as Carlos Ghosn, President and Chief Executive Officer, said the company was accelerating measures to meet its Nissan Power 88 mid-term goals, committing to an 8% operating profit margin by the end of fiscal year 2016 and targeting 8% market share.

'Nissan generated solid results in fiscal year 2013,' said Mr Ghosn. 'Nissan's performance will improve further in 2014. We are taking determined steps to reach our Power 88 goals including greater focus on market-by-market execution, ramping up newly installed manufacturing capacity and strengthening our brand power.'

Improved fourth-quarter profitability enabled Nissan to deliver its full-year net income guidance for fiscal year 2013, the half-way point in the Power 88 plan that runs to the end of fiscal year 2016.

In the last quarter of fiscal year 2013, Nissan implemented a new management organization to enhance operational effectiveness, along with a renewed focus on improved branding, product quality and regional sales operations.

During the 12-month period, the company launched 10 new vehicles and unveiled 22 new technologies. Sales of the all-electric Nissan LEAF – the world's best-selling zero-emission car – surpassed 110,000 units. Nissan also pledged to bring commercially viable Autonomous Drive vehicles to market by 2020. The company is targeting increased synergies and deeper co-operation through the Renault-Nissan Alliance, where business activities were converged last month in four key areas: purchasing, manufacturing and logistics, engineering and human resources. The latest Alliance action forms part of Renault-Nissan's commitment to lift annualized synergies to a minimum of 4.3 billion euros by 2016.

'Taken together, these actions will enable Nissan to reach its goals during the second half of our six-year Power 88 plan,' added Mr Ghosn.

FY2014 Outlook

Nissan issued a global sales forecast for fiscal 2014, in which it expects volumes to rise by 8.9% to 5.65 million units, equivalent to a market share of 6.7%, as new plant capacity comes on-stream in markets such as Mexico and Brazil, while benefiting from full-year sales of new models including Nissan Qashqai and Rogue, Datsun GO and Infiniti Q50.

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Based on this sales outlook, Nissan filed the following forecasts with the Tokyo Stock Exchange, calculated under the equity accounting method for the fiscal year ending March 31, 2015:

Nissan FY14 Outlook – TSE report basis – China JV equity basis

◾Net revenue: 10.79 trillion ($107.90 B/€77.07B)

◾Operating profit: 535.0 billion ($5.35 B/€3.82 B)

◾Ordinary profit: 620.0 billion ($6.20 B/€4.43 B)

◾Net Income: 405.0 billion ($4.05 B/€2.89 B)

Calculated on exchange rate of JPY 100/1 USD and JPY 140/1 EUR

*Since the beginning of fiscal year 2013, Nissan has reported figures calculated under the equity method accounting for its joint venture with Dongfeng in China. Although net income reporting remains unchanged under this accounting method, the equity-accounting income statements no longer include Dongfeng-Nissan's results in revenues and operating profit.