LATEST NEWS Nissan reports April-December results for fiscal year 2022

YOKOHAMA, Japan (Feb. 10, 2023) – Nissan Motor Co., Ltd. yesterday announced financial results for the April-December period of fiscal year 2022.

April-December financial highlights
For the first nine months of the fiscal year, consolidated net revenue was 7.50 trillion yen, consolidated operating profit was 289.7 billion yen, and the operating profit margin was 3.9%. Net income1 for the nine months was 115.0 billion yen.

Strong currency fluctuations and increases in raw material prices continued to have a significant impact in the third quarter. In addition, the business environment became more challenging as the prolonged semiconductor supply shortage and a resurgence of COVID-19 infections affected production, resulting in lower sales volumes than in the prior year.

Despite these challenges, Nissan is making steady progress with its Nissan NEXT business transformation plan. This is evidenced by the improving net revenue per unit of major models due to ongoing efforts in the enhancement of quality of sales and in cost optimization. In addition, financial discipline, and strict control of fixed costs, coupled with the positive impact of the depreciation of the yen to a higher-than-expected level, contributed to the significant improvement in performance compared with the previous fiscal year.

TSE report basis – China JV equity basis2

Based on average foreign exchange rates of 136 JPY/USD and 141 JPY/EUR for FY22 3Q YTD

On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, operating profit was 375.2 billion yen, equivalent to an operating margin of 4.4%. Net profit1 was 115.0 billion yen.

Third-quarter financial highlights
Nissan has improved its operating profit in each quarter so far in fiscal year 2022, and made further improvement in the third quarter. In the third quarter of fiscal year 2022, consolidated net revenue was 2.84 trillion yen, consolidated operating profit was 133.1 billion yen, and the operating profit margin was 4.7%. Net income1 in the third quarter was 50.6 billion yen. Compared with the same period last year, Nissan has continued to improve its profit, with significant improvements in both consolidated operating profit and net income.

The following table summarizes Nissan’s financial results for the three months ended Dec. 31, 2022, calculated under the equity accounting method for the group’s China joint venture.

TSE report basis – China JV equity basis2

Based on average foreign exchange rates of 141 JPY/USD and 144 JPY/EUR for FY22 Q3

FY2022 outlook
In the fourth quarter, due to semiconductor supply shortages, and the impact of the spread of COVID-19 infections in China, Nissan expects sales volume to decrease by 8.1 % from the previous forecast to 3.4 million units for the 12-month period ending March 31, 2023.

However, Nissan expects to offset the negative impact of volume decline by continued improvement in performance with strict financial discipline. As a result, the full-year outlook for fiscal 2022 remains unchanged. In addition, automotive free cash flow and automotive operating profit are expected to be positive for the full year in fiscal 2022.

Commenting on the results, Nissan CEO Makoto Uchida said: “The third quarter was also a very challenging business environment. However, the new models we introduced in each market have been very well received by customers, and we are feeling a strong response for the future. In addition, improvements in the quality of sales and thorough financial discipline have taken root in our daily activities and are steadily reflected in our business performance. Although it is difficult to foresee the future business environment at this point, we will steadfastly continue our efforts in the fourth quarter toward achieving the revised forecast for the fiscal year.”

1 Net income 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.