novembre 12, 2020 - Nissan

Nissan reports first-half results for fiscal year 2020

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YOKOHAMA, Japan – Nissan Motor Co., Ltd. today announced financial results for the six-months ended Sept. 30, 2020, and the revised outlook for fiscal year 2020.

In the first half of the fiscal year, consolidated net revenue was 3.09 trillion yen, the consolidated operating loss was 158.8 billion yen, and the operating profit margin was -5.1%. The net loss1 in first half was 330 billion yen.

In the second quarter of the fiscal year, consolidated net revenue was 1.92 trillion yen, the consolidated operating loss was -4.8 billion yen, and the operating profit margin was -0.3%. The net loss1 in the second quarter was 44.4 billion yen. Compared with the first quarter of fiscal 2020, the operating loss was significantly improved as Nissan concentrates on the following measures under the Nissan NEXT business transformation plan:

  • Improving quality of sales by focusing on retail sales, lowering incentives and improving revenue per unit;
  • Reducing inventory levels between Nissan and dealers; and,
  • Reducing fixed costs and optimizing costs across business operations

Fiscal year 2020 second-quarter financial highlights

The following table summarizes Nissan’s financial results for the three-months ended Sept. 30, 2020, calculated under the equity accounting method for the group’s China joint venture.

(TSE report basis – China JV equity basis)2

Yen in billionsFY19 Q2FY20 Q2Variance vs FY19FY20 Q1
Revenues2,630.71,918.5-712.21,174.2
Operating profit30.0-4.8-34.8-153.9
Net income159.0-44.4-103.4-285.6

Based on average foreign exchange rates of JPY 106.2 /USD and JPY 124.1 /EUR for FY20 Q2

 

Fiscal year 2020 first-half financial highlights

The following table summarizes Nissan’s financial results for the first-half of fiscal year 2020, calculated under the equity accounting method for the group’s China joint venture.

(TSE report basis – China JV equity basis)2

Yen in billionsFY19 first halfFY20 first halfVariance vs FY19
Revenues5,003.13,092.7-1,910.4
Operating profit31.6-158.8-190.4
Operating margin %0.6%-5.1%-5.7ppt
Ordinary profit115.6-231.8-347.4
Net income165.4-330.0-395.4

Based on average foreign exchange rates of JPY 106.9 /USD and JPY 121.3 /EUR for FY20 1H

On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, the operating loss was 104.5 billion yen, equivalent to an operating margin of -2.9%. The net loss1 was 330.0 billion yen.

Nissan continues to strategically accumulate liquidity under the difficult business environment caused by COVID-19, in order to overcome the crisis. At the end of September 2020, cash and cash equivalents were over 2.3 trillion yen and net cash totaled 505.8 billion yen for the automotive segment. Furthermore, Nissan has unused committed credit facilities of approximately 2.0 trillion yen as of September 2020.

FY2020 outlook

For fiscal 2020, Nissan expect sales volume to increase by 1% over our previous forecast to 4,165,000 units. Despite the negative impact of rising raw material prices, Nissan revised its full-year outlook as follows due to improvements in selling expenses as well as sales finance, manufacturing and fixed costs.

Nissan is forecasting net revenue of 7.94 trillion yen. The company foresees an operating loss of 340 billion yen, which is 130 billion yen better than the previous outlook reflecting the results of the first six months. A net loss1 of 615 billion yen is expected, which is 55 billion yen better than the previous outlook.

The company has filed the following fiscal-year outlook to the Tokyo Stock Exchange. Calculated under the equity accounting method for Nissan’s joint venture in China, the forecasts for the fiscal year ending March 31, 2021, are:

(TSE report basis – China JV equity basis)2

Yen in billionsPrevious FY20
outlook
Revised FY20
outlook
Variance vs Previous outlook
Net revenue7,8007,940+140.0
Operating loss470340+130.0
Net loss1670615+55.0

Globally, Nissan is steadfastly advancing its Nissan NEXT business transformation plan. The company’s efforts to reduce fixed costs by 300 billion yen by the end of fiscal year 2020, compared with fiscal year 2018, are on track. Nissan’s plan to launch 12 new models is also on track, including last month’s launch of the new Nissan Rogue and the premiere of a new compact car in Japan within this year.

“Going forward, we will continue to strengthen our efforts to rationalize the business, while enhancing our product capabilities and refreshing our product lineup to provide unique value to our customers. While continuing to operate in an uncertain environment in the second half of the fiscal year, we will maintain the momentum from the second quarter with further financial discipline and improvement in our quality of sales. As an important milestone under Nissan NEXT, we will firmly pursue our aim towards achieving 2% operating margin in fiscal year 20213,” said Nissan CEO Makoto Uchida.

1 Net income or net loss attributable to owners of the parent

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

3 On a management pro forma basis