TOKYO – Nissan Motor Co., Ltd., today announced record net income of 512.3 billion yen (US $4.76 billion, euro 3.81 billion), up 1.7% for the fiscal year ended March 31, 2005. Nissan President and CEO Carlos Ghosn also unveiled the specifics of NISSAN Value-Up, the company’s three-year business plan that began April 1, 2005.

Last year, Nissan rose to the challenge and delivered a record performance despite many headwinds, such as unfavorable exchange rates, higher commodity prices, higher incentives and higher interest rates,” said Ghosn. “The fundamentals of the business are strong, our products are attractive to consumers, and Nissan is poised for sustained, profitable growth.”

Nissan’s consolidated net revenues amounted to 8.576 trillion yen (US $79.7 billion, euro 63.8 billion), up 15.4% compared with the previous year. Operating profit totaled a record 861.2 billion yen (US $8.0 billion, euro 6.4 billion), up 4.4% compared with last year, and the operating profit margin came to 10.0%, which is at the top level among global automakers. Ordinary profit amounted to 855.7 billion yen (US $7.95 billion, euro 6.37 billion), up 5.7%.

Nissan sold a record 3,388,000 vehicles worldwide in fiscal year 2004, an increase of 10.8%, or 331,000 units. In the United States, sales advanced 18.4% to 1,013,000 units, topping the 1-million mark for the first time. In Japan, sales increased 1.4% to 848,000 units. In Europe, where sales are reported on a calendar-year basis, sales were flat at 544,000 units. Sales in General Overseas Markets, including China, Mexico and Canada, increased 19.5% to 983,000 units.

The fiscal year 2004 financial results include the 50% proportional consolidation of Dongfeng Motor Co., Ltd., Nissan’s joint venture in China, and the full consolidation of Siam Nissan Automobile Co., Ltd., and Yulon Motor Co., Ltd. 

The NISSAN Value-Up business plan has three commitments relating to profitability, growth and return on investment. The commitments are:
· to maintain the top level of operating profit margin among global automakers for each of the three years of the plan; 
· to achieve global sales of 4.2 million units, measured in fiscal year 2008; and
· to achieve a 20% return on invested capital on average over the course of the plan, excluding cash on hand.

“The story of Nissan’s revival is now complete,” said Ghosn. “NISSAN Value-Up is a clear plan with specific commitments. Within this framework for action, we will create more value for more customers, employees and shareholders in more world markets than ever before.”

Under the plan, Nissan will expand its worldwide presence, and Infiniti will be launched as a global tier-one luxury brand. Currently marketed in North America, Taiwan and the Middle East, Infiniti will be expanded to Korea, China and Russia. 

Through the end of fiscal year 2007, 28 all-new Nissan and Infiniti models will be launched globally.

Other FY04 financial highlights:

Nissan’s net automotive debt has been eliminated. Nissan had 205.8 billion yen (US $1.91 billion, euro 1.53 billion) in cash at the close of fiscal year 2004.

As previously announced, Nissan will propose a 12-yen-per-share year-end dividend at the company’s annual general shareholders meeting on June 21, 2005, for a full-year dividend of 24 yen per share for fiscal year 2004.

Outlook for FY05: 
Business risks include volatility in foreign exchange rates, higher commodity prices, higher interest rates, higher energy prices, and uncertainty about the levels of growth in the U.S. and Japanese markets. Opportunities lie in the accelerated implementation of NISSAN Value-Up.

FY05 forecast:
Based on this outlook and assuming foreign exchange rates of 105 yen/dollar and 130 yen/euro, Nissan filed the following forecast for the fiscal year ending March 31, 2006, with the Tokyo Stock Exchange: 
· consolidated net revenues of 9 trillion yen;
· operating profit of 870 billion yen;
· ordinary profit of 860 billion yen; and 
· net income of 517 billion yen.

Note: Amounts in dollars and euros are translated for the convenience of the reader only at the foreign exchange rates of 107.6 yen/dollar and 134.4 yen/euro, the average rates for the fiscal year ending March 31, 2005.

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