Nissan Motor Announces Financial Report for the First Half of Fiscal Year 2022: Both Operating Income and Profit Increase, Raises Full-Year Profit Expectation

(November 10, 2022, Yokohama) Nissan Motor Co. yesterday announced its financial results for the first half of fiscal 2022 (April 1, 2022 – September 30, 2022) and raised its full-year fiscal 2022 revenue and profit expectations.

Key financial information for the first half of fiscal year 2022

In the first half of fiscal year 2022 (April 1, 2022 – September 30, 2022), Nissan Motor Corporation’s consolidated net income increased by 715.3 billion yen (about 35.457 billion ^yuan3 ) to 4.66 trillion yen (about 230.992 billion yuan) ^RMB3 ), consolidated operating profit increased by 17.5 billion yen (approximately ^RMB867 million3) to 156.6 billion yen (approximately RMB7.763 ^billion3 ), operating profit margin was 3.4%, and net ^income1 was 64.5 billion yen (approximately RMB7.763 billion). 3.197 billion ^RMB3 ).

The operating environment for the first half of fiscal 2022 is challenging. Despite the sharp rise in raw material prices, a shortage of chip supply, and a decline in sales compared to the same period last year due to epidemic control, the company still achieved double growth in revenue and operating profit.

Thanks to the steady implementation of the “Nissan NEXT Enterprise Transformation Plan”, Nissan’s sales quality in various markets around the world has been continuously improved, sales expenses have gradually decreased, and profit per vehicle has increased significantly. Compared with the previous fiscal year, the company’s performance was also affected by the recent weaker-than-expected yen exchange rate.

The following chart summarizes Nissan Motor Company’s financial data for the first half of fiscal year 2022 (April 1, 2022 – September 30, 2022), in which the performance data of Nissan’s joint ventures in China are calculated using the equity method.

Nissan Motor Company’s Key Financial Information for the First Half of Fiscal Year 2022

( Based on Tokyo Stock Exchange Statements – Chinese JVs partially based on equity method ) ²

Unit: billion yen	First half of fiscal 2021	First half of fiscal 2022	year-on-year difference
net income	3,947.0	4,662.3	+715.3
operating profit	139.1	156.6	+17.5
Operating Profit Margin %	3.5%	3.4%	-0.1 percentage points
ordinary profit	184.5	196.9	+12.4
Net income1	168.6	64.5	-104.1

Based on average exchange rates of JPY 134/USD and JPY 139/EUR in the first half of fiscal 2022

According to the management’s estimated report (including the operating performance of Nissan Motor Co.’s Chinese joint venture), Nissan Motor Co.’s operating profit in the first half of fiscal year 2022 was 212.6 billion yen (about 10.538 billion ^yuan3 ), with an operating profit margin of 4.0%. Net Revenue ¹ was 64.5 billion yen (about 3.197 billion RMB ³ ).

Key Financial Information for the Second Quarter of Fiscal 2022

In the second quarter of fiscal year 2022 (July 1, 2022-September 30, 2022), Nissan Motor Corporation achieved a consolidated net income of 2.52 trillion yen (about 124.914 billion ^yuan3 ), and consolidated operating profit rose 44.5% to 917 billion yen (about 4.545 billion yuan ³ ), with an operating profit margin of 3.6%. Nissan Motor Co. delivered a strong second quarter despite a challenging operating environment. The company’s net ^income1 in the second quarter of fiscal 2022 was 17.4 billion yen (about 863 million ^yuan3 ), a decrease compared to the same period last year, which was related to the company’s exit from the Russian market and the decrease in equity earnings of affiliated companies, making the second There was a one-time loss of 24.1 billion yen (about 1.195 billion yuan ³ ) in the quarter.

In the second quarter, the free cash flow of the company’s automotive business was positive JPY 206.6 billion (approximately RMB 10.241 billion ³ ).

The following chart summarizes Nissan Motor Company’s financial data for the second quarter of fiscal 2022 (July 1, 2022 – September 30, 2022), in which the performance data of Nissan’s joint ventures in China are calculated using the equity method.

Nissan Motor Company’s Key Financial Information for the Second Quarter of Fiscal 2022

( Based on Tokyo Stock Exchange Statements – Chinese JVs partially based on equity method ) ²

Unit: billion yen	Q2 FY 2021	Q2 FY 2022	year-on-year difference
net income	1,938.8	2,524.9	+586.1
operating profit	63.4	91.7	+28.3
Net income1	54.1	17.4	-36.7

Based on average exchange rates of JPY 138/USD and JPY 139/EUR in the second quarter of fiscal 2022

Fiscal 2022 Full Year Outlook

Nissan expects fiscal 2022 sales to fall 7.5% from its forecast to 3.7 million vehicles. In the second half of fiscal year 2022, the company will continue to launch new models and improve sales quality despite the negative impact of continued chip supply shortages and rising raw material prices. At the same time, affected by the recent fluctuations in foreign exchange rates and the significant depreciation of the Japanese yen, Nissan has adjusted its exchange rate assumptions accordingly.

Taking these factors into consideration, Nissan has adjusted its full-year forecast for fiscal 2022. Compared with previous expectations, net income was raised by 900 billion yen (about 44.612 billion ^yuan3 ), and operating profit was raised by 110 billion yen (about 5.453 billion ^yuan3 ).

Net ^income1 attributable to owners of the parent company was raised by 5 billion yen (approximately RMB 248 million3) to 155 billion yen (approximately RMB ^{7.683 billion3} ) from the previous estimate. This adjustment takes into account the estimated financial loss of approximately 100 billion yen (approximately RMB ^4.957 billion3) due to the withdrawal from the Russian market.

Nissan Motor Corporation submitted its fiscal year 2022 forecast (ending March 31, 2023) to the Tokyo Stock Exchange, of which the Chinese joint venture is partially calculated based on the equity method, and the forecast is as follows:

Nissan Motor Company’s Fiscal Year 2022 Expectations

( Based on Tokyo Stock Exchange statements – Chinese joint ventures are partially based on the equity method ) ²

Unit: billion yen	Adjusted FY 2022 Expectations	Adjusted Fiscal 2022 Expectations	year-on-year difference
net income	10,000.0	10,900.0	+900.0
operating profit	250.0	360.0	+110.0
Net income1	150.0	155.0	+5.0

Calculated based on adjusted FY 2022 expected average exchange rates of JPY 135/USD and JPY 137/EUR

Makoto Uchida, Chief Executive Officer of Nissan Motor Co., said: “The company’s strong business performance in the first half of the fiscal year reflects the steady improvement in the company’s earnings structure and the expanding business base. The impact of the exchange rate of the Japanese yen. Despite the continued shortage of chip supplies and rising raw material prices, which made the operating environment more challenging, Nissan still achieved a satisfactory performance.”

“Faced with these challenges, the company has worked together to maintain meticulous financial management and improve sales quality. At the same time, the new models released by the company have been highly praised by consumers in various markets. Although the operating environment in the second half of the year is still quite challenging As a result, Nissan will continue to steadily advance its ‘Nissan NEXT corporate transformation plan’ and achieve its revised full-year forecast.”

Nissan Motor Company’s full financial report link: https://www.nissan-global.com/EN/IR/FINANCIAL/

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

² From fiscal year 2013, Dongfeng Motor Co., Ltd., a joint venture established by Nissan Motor and Dongfeng Motor Corporation, adopts the equity method of accounting. Although the net profit report will not change under the new accounting method, Dongfeng Motor’s revenue and operating profit will no longer be included in the income statement thereafter.

³ Calculated based on the exchange rate of 100 yen/4.9569 yuan over the counter transaction price of the People’s Bank of China on November 9, 2022.