Nissan Motor : FY2020 Consolidated Financial Results

FY2020 Consolidated Financial Results (Japanese Accounting Standards)

	Nissan Motor Co., Ltd.	May 11, 2021
Company name :
Code no :	7201	(URL https://www.nissan-global.com/EN/IR/)
Representative :	Makoto Uchida, Representative Executive Officer, President and Chief Executive Officer
Contact person :	Tsuyoshi Tatsumi, Corporate Vice President, IR Department	Tel. (045) 523 - 5523

Scheduled date of the general meeting of shareholders : To be determined	Scheduled date of filing Yukashoken-Houkokusho : To be determined
Scheduled date of payment of cash dividends : ―
The additional materials of the Financial Results for FY2020 : Yes
The briefing session of the Financial Results for FY2020 : Yes
	(Amounts less than one million yen are rounded)

1. Consolidated Financial Results for FY2020 (April 1, 2020 through March 31, 2021) <1> Consolidated operating results

(Percent indications show percentage of changes from corresponding figures for the previous period.)

Net sales

Operating income

Ordinary income

Net income attributable to

owners of parent

Millions of yen

%

Millions of yen

%

Millions of yen

%

Millions of yen

%

FY2020

7,862,572

(20.4)

(150,651)

―

(221,230)

―

(448,697)

―

FY2019

9,878,866

(14.6)

(40,469)

―

44,049

(91.9)

(671,216)

―

Note: Comprehensive income : (41,928) million yen for FY2020, －% : (1,084,147) million yen for FY2019, －%

Basic earnings

Diluted earnings

Rate of return

Ordinary income as a

Operating income as a

percentage of total

percentage of net

per share

per share

on equity

assets

sales

yen

yen

%

%

%

FY2020

(114.67)

―

(11.2)

(1.3)

(1.9)

FY2019

(171.54)

―

(14.3)

0.2

(0.4)

Reference: Equity in earnings (losses) of affiliates : (55,861) million yen for FY2020, 86,547 million yen for FY2019

<2> Consolidated financial position

Total assets

Net assets

Net assets as

a percentage of

Net assets per share

total assets

Millions of yen

Millions of yen

%

yen

FY2020

16,452,068

4,339,826

24.0

1,007.80

FY2019

16,976,709

4,424,773

23.9

1,038.95

Reference: Net assets excluding share subscription rights and non-controlling interests: 3,944,593 million yen as of March 31, 2021,

4,064,289 million yen as of March 31, 2020

<3> Consolidated cash flows

Cash flows from

Cash flows from

Cash flows from

Cash and cash

equivalents

operating activities

investing activities

financing activities

at the end of period

Millions of yen

Millions of yen

Millions of yen

Millions of yen

FY2020

1,322,789

(369,121)

(639,692)

2,034,026

FY2019

1,185,854

(708,687)

(155,494)

1,642,981

2. Dividends

Annual cash dividends per share

Total cash

Payout ratio

Cash dividends as

dividends

a percentage of

net assets

at 1st quarter end

at 2nd quarter end

at 3rd quarter end

at fiscal year end

Total

(Annual)

(Consolidated)

(Consolidated)

yen

yen

yen

yen

yen

Millions of yen

%

%

FY2019

―

10.00

―

0.00

10.00

39,132

―

0.8

FY2020

―

0.00

―

0.00

0.00

0

―

―

FY2021 forecast

―

―

―

―

―

―

Note: FY2021 dividends forecast has not yet been determined.

3. Forecast of consolidated operating results for FY2021 (April 1, 2021 through March 31, 2022)

(Percent indications show percentage of changes from corresponding figures for the previous period.)

	Net sales		Operating income		Net income attributable to	Net income per share
			owners of parent
	Millions of yen		%	Millions of yen		%	Millions of yen	%	yen
FY2021	9,100,000		15.7	0	―		(60,000)	―	(15.33)

Note: Forecast of consolidated operating results for FY2021 1st half is not prepared.

※ Notes

<1> Significant changes in scope of consolidated subsidiaries: None
In : - ( Company Name :	)	Out : - (Company Name :	)

<2> Changes in accounting policies, accounting estimation change and restatement

<2>-1 Changes in accounting policies due to the revision of the accounting standards: Applicable

<2>-2 Changes in accounting policies except for those in <2>-1: Applicable

<2>-3 Changes due to accounting estimation change: None

<2>-4 Restatement: None

Note: See attached page14 "3. CONSOLIDATED FINANCIAL STATEMENTS (5) Notes to Consolidated Financial Statements - Changes in accounting policies".

<3> Number of shares issued (common stock)
<3>-1	Number of shares issued at the fiscal year end (including treasury stocks)	FY2020	4,220,715,112 shares	FY2019	4,220,715,112 shares
<3>-2	Number of treasury stocks at the fiscal year end	FY2020	306,650,569 shares	FY2019	308,801,374 shares
<3>-3	The average number of shares issued during the fiscal year	FY2020	3,912,895,437 shares	FY2019	3,912,975,326 shares

(Reference) Non-Consolidated Financial Results

Results of FY2020 (April 1, 2020 through March 31, 2021)

1. Results of non-consolidated operations for the year ended March 31, 2021

(Percent indications show percentage of changes from corresponding figures for the previous period.)

	Net sales		Operating income	Ordinary income	Net income
	Millions of yen		%	Millions of yen	%	Millions of yen	%	Millions of yen		%
FY2020	2,489,676		(21.2)	(263,729)	―	99,034	272.7	(72,629)		―
FY2019	3,157,540		(13.4)	(130,060)	―	26,571	(90.2)	(342,745)		―
	Net income per
	share - basic
			yen
FY2020	(17.32)
FY2019	(81.76)

• This Financial Results report is out of scope of Financial Audit by certified public accountants or an audit firm
• Explanation regarding the appropriate use of forecasts of business results

The financial forecast is based on judgments and estimates that have been made on the basis of currently available information.

By nature, such financial forecast is subject to uncertainty and risk. Therefore, you are advised that the final results might be significantly different from the aforementioned forecast due to changes in economic environments related to our business, market trends and exchange rate, etc.

For other remarks, please refer to "Other Information" on page 22.

Nissan Motor Co., Ltd. (7201)

FY2020 Consolidated Financial Results

【Table of Content of material】

1.	BUSINESS PERFORMANCE AND FINANCIAL POSITION ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	2
	(1)	Fiscal Year	2020 Business Performance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	2
	(2)	Fiscal Year	2020 Financial Position ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	3
	(3)	Fiscal Year	2020 Cash Flows ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	3
	(4)	Fiscal Year	2021 Financial Forecast ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	4
2.	BASIC RATIONALE ON SELECTION OF ACCOUNTING STANDARDS ・・・・・・・・・・・・・・・・・・・・・・	4
3.	CONSOLIDATED FINANCIAL STATEMENTS ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	5
	(1)	Consolidated Balance Sheet ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	5
	(2)	Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ・・・・・・・	7
		Consolidated statement of income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	7
		Consolidated statement of comprehensive income	・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	9
	(3)	Consolidated Statement of Changes in Net Assets	・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	10
	(4)	Consolidated Statement of Cash Flows ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	12
	(5)	Notes to Consolidated Financial Statements ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	14
		Notes to events and conditions which indicate there could be substantial doubt about going concern
		assumption	・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	14
		Basis of consolidated financial statements ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	14
		Changes in accounting policies ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	14
		Additional information ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	15
		Segments of an enterprise and related information	・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	16
		Amounts per share ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	21
		Significant subsequent events ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	21
4.	Other Information	・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・	22

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Nissan Motor Co., Ltd. (7201)

FY2020 Consolidated Financial Results

1. BUSINESS PERFORMANCE AND FINANCIAL POSITION

(1) Fiscal Year 2020 Business Performance

In fiscal year 2020, the global industry volume decreased by 10.2% to 76.98 million units. The main reason of this decrease was due to the impact of COVID-19 globally, which led to a decline in demands particularly in the first quarter. The Nissan Group (the "Group")'s global sales amounted to 4,052,000 units, a 17.8% decrease from the prior fiscal year due to COVID-19 impact. As a result, the Group's market share decreased by 0.5 points to 5.3% from the prior fiscal year.

In Japan, TIV decreased by 7.6% to 4.66 million units. The Group's sales volume decreased by 10.6% to 478,000 units and the Group's market share decreased by 0.3 points to 10.3% from the prior fiscal year.

In China, TIV decreased by 3.6% to 23.43 million units. The Group's sales volume decreased by 5.8% to 1,457,000 units and the Group's market share decreased by 0.2 points to 6.2% from the prior fiscal year.

In North America, including Mexico and Canada, TIV decreased by 11.1% to 17.48 million units. The Group's sales volume in North America decreased by 25.1% to 1,213,000 units from the prior fiscal year.

In the United States of America, TIV decreased by 9.5% to 14.98 million units. The Group's sales volume decreased by 25.1% to 927,000 units and the Group's market share decreased by 1.3 points to 6.2% from the prior fiscal year.

In Europe, TIV decreased by 16.2% to 16.02 million units. The Group's sales volume in Europe, excluding Russia, decreased by 24.1% to 328,000 units. Also, sales volume in Russia decreased by 28.1% to 64,000 units from the prior fiscal year.

In other markets, the Group's sales volume decreased by 27.5% to 513,000 units. Sales volume in Asia and Oceania decreased by 29.6% to 193,000 units, sales volume in Latin America decreased by 31.5% to 141,000 units, sales volume in Middle East decreased by 19.2% to 117,000 units and sales volume in Africa decreased by 25.3% to 62,000 units from the prior fiscal year.

Net sales in fiscal year 2020 decreased by ¥2,016.3 billion (20.4%) to ¥7,862.6 billion from the prior fiscal year. As a result, operating loss totaled ¥150.7 billion, which deteriorated by ¥110.2 billion from the prior fiscal year. This was mainly due to a decrease in sales volume caused by the impact of COVID-19 and exchange rate fluctuations, despite improvements in the quality of sales and reductions in fixed costs.

Net non-operating loss of ¥70.5 billion was recorded, deteriorated by ¥155.0 billion from the prior fiscal year. This result was primarily due to the change from equity in earnings of affiliates to equity in losses of affiliates. Ordinary loss of ¥221.2 billion was recorded, deteriorated by ¥265.2 billion from the prior fiscal year. Net special losses of ¥118.1 billion were recorded, improved by ¥498.9 billion from the prior fiscal year. Loss before income taxes of ¥339.3 billion was recorded, improved by ¥233.7 billion from the prior fiscal year. Net loss attributable to owners of parent of ¥448.7 billion was recorded, improved by ¥222.5 billion from the prior fiscal year.

For fiscal year 2020, automotive free cash flow was ¥391.0 billion negative. However, the Group continues to maintain healthy levels of cash in the automotive business and ended the period with an automotive net cash position of ¥636.0 billion.

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Nissan Motor Co., Ltd. (7201)

FY2020 Consolidated Financial Results

1. Fiscal Year 2020 Financial Position ■Assets

Current assets have decreased by 3.1% to ¥10,349.7 billion compared to March 31, 2020. This was mainly due to decreases in sales finance receivables of ¥525.5 billion and merchandise and finished goods of ¥234.4 billion despite an increase in cash on hand and in banks of ¥489.3 billion.

Fixed assets have decreased by 3.3% to ¥6,095.2 billion compared to March 31, 2020. This was mainly due to a decrease in machinery, equipment and vehicles, net of ¥231.7 billion.

As a result, total assets have decreased by 3.1% to ¥16,452.1 billion compared to March 31, 2020.

■ Liabilities

Current liabilities have decreased by 16.6% to ¥6,726.4 billion compared to March 31, 2020. This was mainly due to decreases in commercial papers of ¥719.3 billion, short-term borrowings of ¥323.4 billion and current portion of bonds of ¥250.6 billion.

Long-term liabilities have increased by 20.0% to ¥5,385.9 billion compared to March 31, 2020. This was mainly attributable to an increase in bonds of ¥1,003.7 billion despite a decrease in net defined benefit liability of ¥196.5 billion. As a result, total liabilities have decreased by 3.5% to ¥12,112.2 billion compared to March 31, 2020.

■ Net Assets

Net assets have decreased by 1.9% to ¥4,339.8 billion compared to ¥4,424.8 billion as of March 31, 2020. This was mainly due to a decrease in retained earnings of ¥495.1 billion despite increases in remeasurements of defined benefit plans of ¥149.3 billion, translation adjustments of ¥140.0 billion and unrealized holding gain and loss on securities of ¥78.3 billion.

1. Fiscal Year 2020 Cash Flows

Cash and cash equivalents at the end of fiscal year 2020 increased by ¥391.0 billion or 23.8% to ¥2,034.0 billion, due to a decrease in outflows from investing activities and an increase in inflows from operating activities, despite an increase in cash outflows from financing activities.

■ Operating Activities

Cash and cash equivalents provided by operating activities amounted to ¥1,322.8 billion in fiscal year 2020, an increase of ¥136.9 billion from ¥1,185.9 billion provided in the prior fiscal year. This was mainly due to a shift from an increase to a decrease in inventories and a shift from a decrease to an increase in trade notes and accounts payable, despite a shift from a decrease to an increase in trade notes and accounts receivable.

■ Investing Activities

Cash and cash equivalents used in investing activities amounted to ¥369.1 billion in fiscal year 2020, a decrease of ¥339.6 billion from ¥708.7 billion used in the prior fiscal year. This was mainly attributable to a decrease in net payment (net difference between the payment for purchase and the proceeds from sales) of leased vehicles and in purchase of fixed assets.

■ Financing Activities

Cash and cash equivalents used in financing activities amounted to ¥639.7 billion in fiscal year 2020, an increase of ¥484.2 billion from the outflows of ¥155.5 billion in the prior fiscal year. This was mainly due to a shift from an increase to a decrease in net short-term borrowings, and an increase in repayments of long-term borrowings and redemption of bonds, despite an increase in proceeds from long-term borrowings and issuance of bonds.

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