2007 Interactive Registration Document - Renault

1.3.4.1 NISSAN’S STRATEGY AND GROWTH
CONTINUED DRIVE FOR SUSTAINABLE, PROFITABLE
GROWTH IN 2006
In April 2007, Nissan announced results for FY 2006 in which all the anticipated
headwinds materialized. With almost no growth in mature markets and rising
materials costs, Nissan faced the lowest point in its product cycle.
Volume decreased 2.4% while revenue grew 11.0%, totaling ¥10.5 billion . As
a result of the headwinds, operating profi t decreased to ¥776.9 billion , or 7.4%
of revenues. Net income totaled ¥460.8 billion .
FISCAL YEAR 2007 AFTER 9 MONTHS
On February 1, 2008, Nissan announced fi nancial results for the third quarter
of fi scal year 2007, as well as for the fi rst nine months. In the third quarter,
RENAULT AND THE GROUP 01
THE RENAULT-NISSAN ALLIANCE
consolidated net income after tax came to ¥132.2 billion (US $1.13 billion,
€0.81 billion), up 26.6% compared with the same period a year ago.
For the first nine months of the year, net income was ¥344.6 billion
(US $2.94 billion, €2.12 billion), down 9.0%. Net revenue rose 13.9% to
¥7.8346 trillion (US $66.73 billion, €48.10 billion). Operating profi t totaled
¥579.1 billion (US $4.93 billion, €3.56 billion), up 8.9%. Operating profi t margin
came to 7.4%.
The improvement refl ects the success of recent product introductions, strong
sales in the General Overseas Markets (GOM) and a favorable tax position.
Overall , Nissan’s vehicle sales rose 8.4% for a total of 2,714,000 in the fi rst
nine months.
In the first nine months of 2007, Nissan launched nine all-new models:
Livina, X- Trail, Altima coupe, Atlas F24, Aprio, Infi niti G37 coupe, Rogue, GT-R
and Infi niti EX. During the fourth quarter of 2007, two more products were
introduced: the Murano and Frontier Navara Single Cab pickup.
9 MOS 2006 9 MOS 2007 % CHANGE
(In billions)
¥ € (1) ¥ € (1)
Revenue 6,877.2 47.66 7,834.6 48.1 13.9%
Operating margin 531.7 3.68 579.1 3.56 8.9%
% of revenue 7.7% 7.4% -0.3 pts
NET PROFIT 378.6 2.62 344.6 2.12 -9.0%
Sales volumes (in units) 2,504,000 2,714,000 8.4%
(1) For reference only, All of Nissan’s results are published in yen and converted to euros at the rate of 162.9 yen per euro for 2007 and 144.3 for 2006.
NISSAN GLOBAL SALES FOR FIRST-HALF FY 2007
(APRIL 1, 2007 – SEPTEMBER 30, 2007)
For the fi rst six months of fi scal 2007, Nissan’s sales – across all regions –
totalled 1,816,000 units, up 6.3% from 2006. This growth came as total
industry volume declined in Japan, the U.S. and Europe.
Japan
In Japan, Nissan sold 332,000 units in the fi rst half, down 5.0%, below the
market . Sales of vehicles excluding minicars decreased 8.7% and sales of
minicars rose 13.2%. As a result, the company’s market share rose a half a
point to 13.4%.
The new Dualis with sales of 15,000 units and the all-new X-Trail, with
13,000 units sold contributed to Nissan’s performance. Nissan is continuing
specifi c actions to improve the performance of its sales, marketing and
distribution, including consolidating unprofitable outlets, streamlining
back- offi ce operations and integrating subsidiary dealers.
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United States
In the United States, fi rst-half sales rose 4.1% to 534,000 units – as total
industry volume fell 2.4%. Here again, Nissan increased its market share by
a half a point to 6.3%. Nissan launched the all new Rogue in September and
new Murano in January, and expects these key products to perform well in a
turbulent US market where consumers are moving towards more fuel-effi cient
vehicles.
Infi niti sales grew 5.1% with help from the new G37 sedan and coupe.
In the face of the credit crises in the US fi nancial markets, Nissan continued to
carry out sound lending practices. NMAC maintains a sound portfolio with no
signifi cant change in risk ratios and the company is committed to delivering
strong return on its assets.
Europe
In Europe, Nissan sales surged 10.5%, totaling 304,000 units in a market
that dipped 0.9%. Growth in Russia continued to offset declining sales in
Western Europe. Nissan’s fi rst-half sales in Russia reached 67,000 units –
double the volume a year earlier. The new UK-built Qashqai continued to build
momentum, totaling 20% of European sales.
✦ Global Reporting Initiative (GRI) Directives Registration Document Renault 2007 35
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