Nissan Motor Co., Ltd. today announced financial results for the full-year and the fourth quarter of fiscal year 2021.
Full-year financial results
The business environment in fiscal year 2021 remained extremely challenging, affected by external factors such as the prolonged spread of the novel coronavirus, semiconductor supply shortages, and high raw material prices. Despite these challenges, Nissan has continued to make steady progress with its Nissan NEXT transformation plan by strengthening its business foundation, improving quality of sales, and bringing new models to market.
In fiscal year 2021 profitability improved significantly year on year due to continued financial discipline and strict control of fixed costs. The improvement in the quality of sales globally supported by favorable market conditions in the U.S., led to a significant increase in net revenue per unit of major new models contributing to improved profitability for the period.
For the full fiscal year, consolidated net revenue was 8.42 trillion yen, resulting in an operating profit of 247.3 billion yen with an operating margin of 2.9%, and a net income1 of 215.5 billion yen. The fiscal year also marked Nissan’s first return to profitability in three fiscal years and the achievement of an operating margin of 2%3, set as a milestone under Nissan NEXT. Free cash flow for the automotive business was a negative 294.7 billion yen, automotive net cash was 728 billion yen. In light of its improved performance, Nissan plans to pay a year-end dividend of 5 yen per share for fiscal year 2021. 4
TSE report basis – China JV equity basis2
| Yen in billions | FY 2020 | FY 2021 | Variance vs FY20 |
| Revenue | 7,862.6 | 8,424.6 | +562.0 |
| Operating profit | -150.7 | 247.3 | +398.0 |
| Operating margin % | -1.9% | 2.9% | +4.8 ppt |
| Ordinary profit | -221.2 | 306.1 | +527.3 |
| Net income1 | -448.7 | 215.5 | +664.2 |
Based on average foreign exchange rates of 112 JPY /USD and 131 JPY /EUR for FY2021
On a China joint venture proportionate basis, operating profit was 360.5 billion yen, which equates to a 3.7 % operating margin and net income1 was 215.5 billion yen.
Fourth-quarter financial highlights
Since fiscal year 2020 Nissan has constantly improved revenue per unit every quarter, with this trend continuing through the fourth quarter of fiscal year 2021. In addition, free cash flow for the automotive business steadily improved and turned positive in the fourth quarter on an equity basis.
TSE report basis – China JV equity basis2
| Yen in billions | FY20 4Q | FY21 4Q | Variance vs FY20 |
| Revenue | 2,545.1 | 2,270.6 | -274.5 |
| Operating profit | -19.0 | 56.0 | +75.0 |
| Net income1 | -81.0 | 14.2 | +95.2 |
Based on average foreign exchange rates of 116 JPY/USD and 130 JPY/EUR for FY21 Q4
FY2022 outlook
Nissan expects the market environment to be more severe than in fiscal year 2021 due to ongoing semiconductor supply shortages, higher raw material prices and logistics costs, the crisis in Ukraine as well as the impact of lockdowns on parts supplies in China.
However, with a stronger business foundation and continued transformation, Nissan aims to maintain an operating profit at the same level as fiscal year 2021 ensuring the momentum of products, improving quality of sales, and further strengthening financial discipline and control of fixed costs.
The company has filed the following fiscal year forecasts 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, 2023, are:
| FY2022 outlook TSE report basis – China JV equity basis2 (yen in billions) |
|
| Net revenue | 10,000 |
| Operating profit | 250 |
| Net income1 | 150 |
Dividend per share (yen)
| Interim dividend | Year-end dividend | |
| FY2021 | 0 | 54 |
| FY2022 (Outlook) | TBD | 5 |
Commenting on the results, Nissan president and CEO Makoto Uchida said: “Fiscal year 2022 will be an important year as we move toward fiscal year 2023, the final year of Nissan NEXT. Although we expect the business environment to become even more challenging, we are confident to achieve our transformation plan and ensure Nissan remains a truly healthy and resilient company that in any business environment can be financially stable and profitable, and can maintain sustainable growth. We will reassure the plan’s target of a 5% operating margin3 in fiscal year 2023.”
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 revenues and operating profit.
3 China JV proportionate basis
4 Nissan filed the “Notice of Revision of Dividend Forecast” with the Tokyo Stock Exchange today.
SOURCE: Nissan
