Nissan reports first-half results for fiscal year 2021

Steadfast progress of Nissan NEXT delivers positive operating profit of
139.1 billion yen and net income of 168.6 billion yen, full-year forecast revised upward

YOKOHAMA, Japan (November 9, 2021) – Nissan Motor Co., Ltd. today announced financial results for the six-months ended September 30, 2021 and has revised upward its full-year profit outlook for fiscal year 2021.

Fiscal year 2021 first-half financial highlights
Consolidated net revenue was 3.95 trillion yen, consolidated operating profit was 139.1 billion yen, and operating profit margin was 3.5%. Net profit1 was 168.6 billion yen.

Supported by favorable market conditions, with improved quality of its sales and financial discipline, Nissan continues solid implementation of the Nissan NEXT transformation plan. Although sales volume was lower than expected, mainly due to the impact of the semiconductor supply shortage, selling expenses and fixed costs decreased, and the quality of sales in each market continued to improve, resulting in higher profit per unit.

The following table summarizes Nissan’s financial results for the first half of fiscal year 2021, calculated under the equity accounting method for the group’s China joint venture.

(TSE report basis China JV equity basis)2

Yen in billions FY20 first half FY21 first half  Variance
vs FY20
Net revenue 3,092.7 3,947.0 +854.3
Operating profit -158.8 139.1 +297.9
Operating margin % -5.1% 3.5% +8.6 points
Ordinary profit -231.8 184.5 +416.3
Net income1 -330.0 168.6 +498.6

Based on average foreign exchange rates of JPY 110 /USD and JPY 131 /EUR for FY21 H1

On a management pro forma basis, which includes the proportionate consolidation of results from Nissan’s joint venture operation in China, operating profit was 199.7 billion yen, equivalent to an operating margin of 4.3%. Net profit1 was 168.6 billion yen.

Fiscal year 2021 second-quarter financial highlights
Consolidated net revenue was 1.94 trillion yen, consolidated operating profit was 63.4 billion yen, and operating profit margin was 3.3%. Net profit1 was 54.1 billion yen. Nissan achieved the stronger-than-planned results despite a severe business environment.

The following table summarizes Nissan’s financial results for the three-months ended September 30, 2021, calculated under the equity accounting method for the group’s China joint venture.

(TSE report basis – China JV equity basis)2

Yen in billions FY20 Q2 FY21 Q2 Variance
vs FY20
Net revenue 1,918.5 1,938.8 +20.3
Operating profit -4.8 63.4 +68.2
Net income1 -44.4 54.1 +98.5

Based on average foreign exchange rates of JPY 110 /USD and JPY 130 /EUR for FY21 Q2

FY2021 outlook
Nissan expects sales volume to decrease by 13.6 % over the previous forecast to 3.8 million units. Despite the continuing semiconductor supply shortage and the negative impact of rising raw material prices, Nissan has revised upward its full-year outlook as it continues its new car offensive and further improves quality of sales.

For the full fiscal year, Nissan is forecasting net revenue of 8.8 trillion yen. The company foresees an operating profit of 180 billion yen, which is 30 billion yen above the previous outlook. Net profit1 of 180 billion yen is expected, which is 120 billion yen above the previous outlook.

The company has filed the following fiscal-year outlook 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, 2021, are:

(TSE report basis – China JV equity basis)2

Yen in billions Previous FY21
outlook
Revised FY21
outlook
Variance
vs Previous outlook
Net revenue 9,750.0 8,800.0 -950.0
Operating profit 150.0 180.0 +30.0
Net income1 60.0 180.0 +120.0

Marking the announcement, Nissan CEO Makoto Uchida said: Our strong results are the outcome of diligent financial management, improved quality of sales and continuing product offensive. This has helped us withstand several headwinds. As we have revised our fiscal-year 2021 outlook, we are confident to exceed 2% operating margin3 for the year, which is one of the milestones of the Nissan NEXT transformation plan. We will continue to firmly pursue Nissan NEXT globally to achieve 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 revenue and operating profit.

3 On a management pro forma basis

To learn more about Nissan’s financial performance, visit https://www.nissan-global.com/EN/IR/FINANCIAL/.

For more information about Nissan’s products, services and commitment to sustainable mobility, visit
nissan-global.com. You can also follow us on Facebook, Instagram, Twitter and LinkedIn and see all our latest videos on YouTube.

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