Nissan: Remarks from CEO Carlos Ghosn and Chief Competitive Officer Hiroto Saikawa from a 115th Annual General Shareholders meeting

Posted on 24. Jun, 2014 by in Nissan Canada

Nissan binds 115th typical ubiquitous assembly of shareholders


Saikawa CCO: debate delivered in Japanese

2013 was a miracle year for Nissan Motor Corporation. As we might know, we commemorated a 80th anniversary. Datsun, a iconic code in a story of a enlargement is behind in quick flourishing markets. We are median by a six-year midterm plan, Nissan Power 88. The classification is totally prepared to embark on a second-half of a devise with vital investments and stronger supervision structure in place.

I will now yield an overview of a company’s tellurian and informal sales for FY2013, as good as some of a business highlights.


FY2013 Sales Performance: Global

During FY2013, altogether tellurian attention volumes reached 83.1 million units, a 4.8% adult from a before year. Nissan outperformed a attention with sales adult 5.6% during 5.19 million units. This equates to a tellurian marketplace share of 6.2%. Though a volume fell subsequent a initial expectation, a sales strike record high.

Sales Performance: Regional

Here in a vicious home marketplace of Japan, sum attention volumes rose by 9.2% to 5.7 million units. Nissan out-performed a marketplace with section sales adult 11.1% to 719,000, achieving a marketplace share of 12.6%.

This alleviation was driven by clever sales of a DAYZ series; as good as high direct Serena minivan and a new X-Trail. It is vicious to note that a sales volume increase, quite in a fourth quarter, was impacted by Japanese consumers creation purchases before to a expenditure taxation hike. We took this into care as we designed for a year and so confirmed a clever movement in Japan.

In China, where a sales opening is totalled on a 12-month calendar year, Nissan out-performed altogether marketplace growth. The sum attention volume in China was adult 14.2% to 20.75 million units, while Nissan sales augmenting 17.2% to 1.27 million units.

Although a opening was impacted by a islands brawl in a initial half of 2013, direct has been normalizing. The Qashqai and a all-new Sylphy, along with new models from Venucia and Infiniti, contributed to this improvement.

In a pivotal marketplace of North America, Nissan achieved poignant sales growth.

In a U.S., sum attention volume was adult 6.4% during 15.65 million units. Amid clever direct for a new Rogue and a Altima, Nissan sales volume augmenting by 13% to 1.29 million units.

In Canada, Nissan outperformed a marketplace as section sales jumped 20.9% to 96,000 units, compared with a attention that was adult 4.6% during 1.7 million units.

In Mexico, Nissan confirmed a array one position with a marketplace share of 24.9% and section sales of 265,000. Nissan accounts for 5 of a tip 10 models in Mexico and ranks initial in patron satisfaction.

In Europe, including Russia, where a marketplace liberation is entertainment pace, Nissan sales rose 2.4% to 676,000 units, compared with a 1.8% arise in a altogether market. Nissan’s marketplace share was solid during 3.9%.

Growth in Japan, China, North America and Europe contrasted with continued sensitivity in other markets.

Asia and Oceania were significantly influenced by inauspicious sell rate movements and process changes. In these markets, sales declined 17.8%, to 363,000 units.

We faced identical hurdles in Latin America, as good as an additional barrier in Brazil. Due to changes in Free Trade Agreements, a ability to import vehicles from Nissan Mexico was dramatically reduced. Sales in Latin America eventually fell 16.1% to 186,000 units. However, we have taken stairs to expostulate poignant improvements, that a CEO will plead shortly.

Sales reductions in these markets were partly equivalent by a clever opening in a Middle East, where new Patrol has energized a brand. This contributed to a sales boost of 22.5% to 226,000 units.

Nissan saw certain improvements in other high-potential markets. Most notably, in India, we began offered a all-new Datsun GO, and consumers are reacting definitely to a new Terrano. We are focused on significantly expanding a play network opposite India to keep gait with fast marketplace growth.

FY13 Notable Activities


Another area where we saw swell in a final mercantile year was with a Infiniti reward brand. Driven by Infiniti’s clever opening in China, a tellurian sales rose by 4.0% above FY12 levels.

New Products Technologies

Nissan’s success continues to be fueled by rising innovative, sparkling products and technologies. During mercantile year 2013, we launched 10 new vehicles, including: dual new mini-cars, Dayz and Dayz Roox, and a new X-Trail, in Japan; a Teana Long-Wheel Base in China; in India, a new Terrano and a initial Datsun model, a Datsun Go; in a U.S., a Infiniti Q50, Rogue and a new NV200; and in Europe, a new Qashqai.

Of a 90 new technologies we devise to launch during a NP88 term, 22 arrived final year, including a “Direct Adaptive Steering” and “Forward Emergency Breaking” systems, and several other “world-first” technologies. We also continued a enlargement of long-term innovations, including a Autonomous Drive technologies.

Business Expansion

FY2013 was a year in that we worked on business enlargement for destiny growth. During mercantile year 2013, we finished record investments to grow and raise a operations. In fact, a collateral expenditures appearance as a commission of revenue. With these investment burdens now behind us, we design investment costs to be prosaic or to diminution during a second half of a Power 88 term. At a same time, we will reap a advantages of a newly commissioned capacity.

In Brazil and Mexico, we non-stop new plants. We stretched operations during plants in Russia and India. We started prolongation in Vietnam. We began a capacity-development devise in Myanmar. And we executed enlargement skeleton for a plants in Thailand and Indonesia.

Zero-Emission Activities

We also confirmed a number-one position in a electric automobile segment. In January, we upheld a accumulative 100,000 symbol for LEAF sales. We achieved a design to sell 50,000 LEAFs during mercantile year 2013.

LEAF sales stretched in each shred – with an boost in Japan of 21.4%, an boost in a U.S. of 108.6%, and an boost in Europe of 96.7%.

It is transparent that EV technology, pioneered by Nissan, finally has tellurian traction — from a U.S. to Europe and Japan, all a approach to Bhutan. In Bhutan, zero-emissions travel is tip process priority, and there was a lot of swell toward a environmental goals during mercantile year 2013. We delivered a initial Nissan LEAFs to this marketplace and fake an agreement to settle supervision and cab EV fleets regulating Nissan products and technologies.

FY13: Consolidated Financial Performance

I would like to fast run by a altogether financial opening for mercantile year 2013.

As we have finished for several buliding now, Nissan is presenting a financial opening in dual ways. The initial is on a supervision pro forma basis, that includes a formula of a business operations in China – one of a many vicious markets. we cruise this a truest design of a business.

Management Pro Forma Basis

On a supervision pro forma basis, combined net revenues augmenting by 18.7% to 11.43 trillion yen, essentially driven by a improvement in a value of a yen and a impact of sales volume increases. Consolidated handling distinction was adult 15.7%, during 605.7 billion yen, agreeable a 5.3% handling margin.

For a full year, net income was 389 billion yen, adult 13.6% on a same duration of mercantile 2012.
We finished a year in an automotive net money position of 1 trillion 133.7 billion yen, compared with 915.9 billion yen during a finish of Mar 2013.

Official Basis/Equity Accounting Method

Let me switch to a second arrangement method. This is a central stating to a Tokyo Stock Exchange that meets regulatory requirements. These are a numbers we find in your crowd letter. On this basis, a formula of a Chinese corner venture, of that we possess 50 percent, are not enclosed in a combined net income and combined handling profit.

Using it, revenues for a 12-month duration rose 20% to 10.48 trillion yen. Operating distinction was adult 13.6% during 498.4 billion yen; and net income rose 14% to 389 billion yen.


As we mentioned in a beginning, yet FY2013 formula fell brief of a initial expectation, Nissan Motor Corporation delivered distinction in line with a revised full-year guidance, generated giveaway money upsurge of a certain 208.1 billion yen, and strengthened a change sheet. It was also a year in that we took several initiatives in expectation of a second half of a Power 88.
we will now spin a module behind over to Mr. Ghosn. Thank you.

[Ghosn CEO]

Thank you, Saikawa-san.

Nissan Motor Corporation is on a right path. In a 15 years given we initial addressed Nissan’s annual shareholders’ meeting, a sales volume has doubled. We’ve changed from postulated deficits to consistently generating boost in a business. Nissan has stretched a tellurian participation into each vital marketplace – and paved a approach in high-potential regions worldwide. Here in a home marketplace of Japan, we are now strengthening a position in segments trimming from mini-cars to cross-overs to electric vehicles.

Nissan combined poignant brazen movement in 2013. Although we did not pierce brazen as distant or as fast as we would have liked, it was a year of progress. We saw record sales. We deepened a vital partnerships. In Japan and around a world, we finished estimable investments in new prolongation capacity, products, and technologies. We also confirmed a concentration on mercantile discipline.

As a result, a automotive net money spin has never been higher. Our brands have never been stronger. Our position as a industry’s personality on tolerable mobility stays unmatched. And a ability to move new technologies to a marketplace has never been some-more effective.

In a year ahead, we will build on these accomplishments – and closely align all activities to a goals of a 6-year business plan, Nissan Power 88.

Nissan Power 88

We have reached a half-way indicate of a Power 88 term. During a initial 3 years, we grew a volume by one million units. In a second-half of Power 88, we devise to surpass this. With a comprehensive, assertive devise in place, we design to grasp an 8% handling distinction domain by mercantile year 2016. A tellurian marketplace share of 8% will sojourn a target.

In serve to improving a sales performance, we will concentration relentlessly on augmenting profitability, and – many importantly – fulfilling a potential. Although Nissan is in a healthy financial position, we are a improved association than a mercantile year 2013 formula convey. We have industry-leading products and technologies. We have a resources, worker talent, and supervision structure required to plea a competitors. And we have a right business devise with Power 88, that will underpin a full operation of a operations via 2014.

I’d now like to outline what we – a shareholders – can design from Nissan this year.

FY14 Global Outlook

For mercantile year 2014, Nissan anticipates sum attention volumes will arise by 1.6% to 84.4 million units. We design Nissan to urge significantly with sell volumes reaching 5.65 million units. This would proportion to a record tellurian marketplace share of 6.7%.

FY14 Regional Outlook

In Japan, we will build on a clever opening in a mini-car shred with extended selling efforts for a successful Dayz series. We will also concentration activities on other high behaving vehicles, such as Serena and Note. To serve boost sales of a zero-emissions LEAF, we will continue efforts to raise a EV charging network via Japan.

Although we predict continued vigour on Japanese consumers due to a new sales taxation increase, this will be some-more than equivalent by sales enlargement outward of Japan.

In China, a sales are foresee to grow some-more than 17%. Production will be augmenting by a opening of a 4th China plant, in Dalian. We’ll also start internal prolongation of dual Infiniti models, and start localized prolongation of a Venucia-branded electric automobile that utilizes Nissan LEAF technology.

In a United States, we also design poignant improvements. Already, May sales were adult 18% above 2013 levels, and brazen of a attention pace. The LEAF is violation new monthly sales annals – with 3,000 LEAFs sole in a U.S. in May.

In a European market, where we are saying signs of liberation for a initial time in 5 years, we will additionally advantage from a full-year outcome of a new Qashqai and new X-Trail, and a introduction of a new C-segment hatch-back.

We will keep operative to settle Nissan as a number-one Japanese code opposite Europe – a position we already reason in a United Kingdom, Austria and Slovenia.

In Latin America, we design a poignant arise in sales- generally in Brazil. This will be fueled by augmenting supply, interjection to new plants in Resende, Brazil, and Aguascalientes, Mexico.

With new product offerings in India, a Asean and Oceana markets, and a Middle East, we design poignant enlargement of a sales in these markets, as well.

Finally, usually as we did final year in Myanmar and Bhutan, Nissan will continue to expostulate into untapped markets. During 2014, we are commencement prolongation activities in Nigeria – a largest and many abundant marketplace in Sub-Saharan Africa. Nissan will be a initial vital automobile code to concentration prolongation in Nigeria.

FY14 Key Business Unit Opportunities

On a tellurian scale, we design several pivotal business units to expostulate enlargement – many particularly Datsun and Light Commercial Vehicles.


During 2014, we design a revived Datsun code to expostulate clever sales in high-potential markets worldwide. In a final mercantile year, we began internal prolongation and sales of a Datsun GO in India. Since then, prolongation and sales of a Datsun GO-plus have started in Indonesia.

In April, we denounced a all-new Datsun on-DO in Moscow and demeanour brazen to commencement Datsun sales in Russia in September. Earlier this month, we showcased a Datsun indication that will be sole in South Africa, where Datsun once hold a “number-one” code position. During 2014, we will continue to weigh intensity enlargement opportunities for a Datsun brand.

Light Commercial Vehicles

We are also operative to maximize outlay in a Light Commercial Vehicles section – and to settle Nissan’s care in a flourishing tellurian LCV market. To boost sales and profitability, we have reorganized a business section to safeguard some-more synergies with Renault. We are targeting 2 million units in sales – double a stream annual level. We continue to raise a general LCV cab program. And we are formulation assertive roll-outs of a new electric-LCV, a e-NV200; as good as a new tellurian pick-up truck, a Nissan Navara.

FY14 Financial Forecast

Based on this outlook, we design a arise in net revenues for mercantile year 2014.

Because China is one of a many vicious markets, we initial wish to yield we with a approaching results, including China. As Saikawa-san mentioned, we call this stating process “a supervision pro-forma basis.” We trust it provides a many accurate design of a full business operations.

Using this method, we design net revenues will arise by 4.5% to 11.95 trillion yen. Operating distinction is foresee to strech 680 billion yen and net income is likely to be 405 billion yen.

However, regulations now direct that we bar a China business in a central stating to a Tokyo Stock Exchange. Using this process and incompatible China, we design to see net revenues grow by 2.9% to 10.79 trillion yen for mercantile year 2014. Operating distinction is foresee to strech 535 billion yen – representing a domain of 5%. Net income is approaching to sojourn a same.

FY14 Dividend/Shareholder Return Outlook

With record high automotive net money levels, and expectations for continued automotive giveaway money upsurge era for mercantile year 2014, we are forecasting a 10% boost in a division to 33 yen per share. In addition, over a change of a Power 88 mid-term plan, we are augmenting a smallest targeted payout ratio from 25% to 30% of net income.

FY14 Strategy

Clearly, we have high expectations for a year ahead. I’d like to fast benefaction 5 pivotal concentration areas of a strategy:

  • New products technologies;
  • Enhanced code energy and kotozukuri efforts;
  • Broad peculiarity and cost rebate activities;
  • Deeper Alliance synergies; and
  • Meaningful munificent activities.


New Product Launches and Technologies

FY14 Products

In a entrance year, we will launch 10 new vehicles. These embody a new Murano in a U.S., a new zero-emissions e-NV200 in Japan and Europe, an all-new tellurian pick-up truck, and long-wheel-base versions of a Infiniti Q50 and QX50 in China.

CMF Strategy

As we broach new models, we will continue to maximize efficiencies. A pivotal partial of this bid will be a Common Module Family – or “CMF” – strategy, that will support approximately 6 million units of volume for Alliance automobile production. It has a intensity to significantly revoke costs, facilitate a engineering and prolongation processes, and raise automobile peculiarity and versatility.

In 2013, we introduced a initial models delivered by a CMF beginning – a X-trail for Japan, a Rogue for a U.S., and a Qashqai for Europe. These vehicles have been met with high marketplace demand.

Today, we wish to commend a organisation that oversaw a pioneering CMF efforts and delivered a initial CMF models – on time and with tip quality. This organisation recently perceived a Global Nissan President Award for Employees for their contributions to a ongoing product offensive.


In serve to a portfolio of new models, we will broach 5 new technologies this year. These embody innovative reserve encouragement facilities such a “Smart Rearview Mirror” – a world’s initial LCD rearview monitor. It provides transparent prominence underneath several conditions; it also allows a motorist to switch between a LCD guard and a normal mirror.

As we broach new innovations to a market, we will continue to rise a breakthrough zero-emissions and zero-fatality efforts – including a Autonomous Drive technology.

At final year’s Nissan 360 event, we showcased a Autonomous Drive capabilities to a world. We also affianced that Nissan would be prepared to broach vehicles with Autonomous Drive to a marketplace by 2020. Until then, we are gradually introducing components of this record into new vehicles.

Just as we did with electric vehicles when we introduced a LEAF – that is now a world’s best-selling EV – Nissan wants to lead a attention in Autonomous Drive. Here in Japan, we became a initial automaker to obtain a permit image for open highway contrast of an unconstrained pushing vehicle. And – with Prime Minister Abe along for a float – we have showcased a Autonomous Drive record on Tokyo’s streets.

I’d like to uncover we usually how distant we have come.


This is a video of one of a LEAF vehicles regulating a latest Autonomous Drive record to tour from a tellurian domicile in Yokohama to a Oppama investigate core some-more than 25 kilometers away. This automobile is utilizing a “Following System,” that automatically adjusts speed to say a protected stretch from a automobile ahead. This element will be serve grown over a subsequent dual years and launched in 2016.

Brand Power/Kotozukuri Efforts

Generating fad about a innovations, products, and brands is critical. This will assistance Nissan to urge pricing energy and, ultimately, yield larger earnings to a shareholders.

The Nissan code has never been stronger. Over a final 3 years, we were a fastest rising code on a Interbrand consult – with Nissan now ranked 65th among all tellurian brands. But we have many serve to go. We will continue to concentration on code consistency, code enhancement, and code engagement.

During 2014, a pivotal partial of this will be strengthening a online presence. This year, we are rising a new tellurian digital architecture. It will underpin all destiny digital and amicable media activities. It will also yield a globally unchanging code temperament – and a many some-more interactive patron believe online.

This height will element a work of a Nissan Global Media Center, that continues to share a association account by formulating story segments. By a finish of 2014, these segments will strech over 24 million accumulative viewers, examination roughly 700,000 hours of branded content. It will also raise a stream selling activities, including a tellurian “What If?” code debate – that is now benefaction in 85% of general airports.

Our digital activities will serve accelerate a “real-life” sports partnerships we have determined with mixed sports teams and organizations worldwide. As a outcome of these efforts, a Nissan code will be featured during – and during events in allege of – a 2016 Olympic games in Rio de Janeiro, a Africa Cup of Nations, and a UEFA Champions League. For Formula One racing, a Infiniti code continues to be a many manifest code on a grid – interjection to a partnership with a many successful team, Infiniti Red Bull Racing.

Here in Japan, a ongoing partnership with a Yokohama F- Marinos will continue.

In fact, usually final month, as partial of an bid to emanate serve opportunities for a J-League and for Nissan’s augmenting visibility, we determined a new partnership with City Football Group – that will spin a minority stakeholder in a F-Marinos team.

These activities are usually a image of how we are fueling unrestrained for a Nissan code and, in turn, elevating a pricing power.

Product Quality Cost Reduction Efforts

Increasing a pricing energy also depends on a ability to consistently broach rival vehicles that accommodate a tip standards of quality.

When it comes to quality, we are creation progress. In 2014, underneath a care of EVP Nakamura-san, a peculiarity expostulate will spin some-more comprehensive.
Our idea is to be during a tip spin of a attention – and to precedence a peculiarity improvements to rouse a altogether opinion of a brands and products.

To accelerate a peculiarity and cost rebate efforts, we are conducting company-wide reviews of both peculiarity and cost-control activities – and bringing these teams together during each theatre of production. This will concede us to grasp larger efficiencies and maximize a impact of quality-enhancement and cost-control efforts in a prolongation operations.

For instance, even yet a monozukuri teams met their cost rebate goals final year – we faced rising losses in other areas. Some of these increases – such as unfamiliar sell rates and regulatory costs – are over a control.
But we can equivocate – and we are implementing systems to forestall – controllable costs, such as plant inefficiencies, guaranty costs, or nonessential underline enhancements.

As partial of this effort, we are expanding a operation of a cost rebate activities over a monozukuri operations. From product formulation to marketing, each organisation and shred will set and accommodate cost rebate goals. And swell will be closely tracked underneath a care of Saikawa-san.

Renault-Nissan Alliance

Our concentration on potency has desirous a new stairs we have taken to maximize a energy of a 15-year Alliance between Nissan and Renault. During 2013, sales from Nissan and Renault’s 7 Alliance brands reached 8.3 million units, creation a Alliance a world’s fourth largest automotive organisation by volume.

At a prior gait of Alliance synergies, we were on lane to strech 3.3 billion euros in synergies by 2016. That might sound like a lot. But a fact is: to tighten a rival opening with a industry’s top-three automobile manufacturers – we contingency do some-more to maximize efficiencies.

That’s why, during a start of mercantile year 2014, we converged 4 pivotal business areas: Purchasing; Manufacturing and Logistics; Engineering; and Human Resources.

Already, this is pushing deeper formation between Nissan and Renault. However, all that creates these dual companies particular will sojourn separate. Nissan’s brands and selling tactics, a product designs, and a enlightenment will sojourn singly Nissan.

With a joining beginning in place, a joining is to grasp a smallest of 4.3 billion euros in synergies by 2016 – with a aim of 5.3 billion euros in synergies. This represents estimable assets that will boost a profitability of both companies.

Philanthropic Activities

Our many efforts to strengthen Nissan’s financial health not usually fuel a ability to broach cutting-edge vehicles, they also capacitate Nissan to say a joining to corporate citizenship.

At Nissan, we take a shortcoming to assistance build a tolerable multitude as severely as a requirement to broach for a shareholders.
Our munificent efforts are focused on environmental, educational and charitable activities. Our idea is to assistance emanate a safer and cleaner universe – where people have a resources, knowledge, training, and collection to urge their lives and their communities.

As we entered a auditorium, we might have beheld a arrangement celebrating a 30th anniversary of one of a longest-running munificent projects -The Nissan Children’s Story Book and Picture Book Grand Prix. Over a final 3 decades, Nissan has published and donated some-more than 200,000 books to assistance teach Japanese children opposite a nation and in informal markets around a world.

And we continue to support communities in need of disaster service support in East Japan. Although Nissan’s munificent activities are manifest opposite a country, they also go distant over Japan.

For example, in India, Nissan is holding an active purpose to assistance urge highway reserve and, specifically, boost chair belt use. As partial of this effort, we launched a Nissan Safety Driving Forum; and we have stretched this beginning to 5 cities opposite India. Our joining to relocating a attention toward a zero-fatality destiny will continue in India – and beyond.

Another example: a ongoing tellurian partnership with Habitat for Humanity. Through this partnership, Nissan continues to assistance to build tolerable communities in Japan, Australia, India, Indonesia, Philippines, Thailand, a U.S., and Vietnam. Last year, we stretched these efforts to Myanmar.

For some-more information on a extended operation of munificent efforts, we can perspective a full Sustainability Report for 2014, that was published on Nissan’s website yesterday.


Before we open a assembly to questions, we would like to stress that Nissan has begun this new mercantile year in a position of strength. We are committed to achieving a Power 88 goals. And we will continue to broach for a business and a shareholders.

Thank you, once again, for your support of Nissan Motor Corporation. That concludes a business news on 2013 and opinion for 2014.


# # #

Tags: ,

Comments are closed.