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NISSAN PRESS RELEASE
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April 26, 2007

NISSAN NET INCOME AT 460.8 BILLION YEN IN FY2006

TOKYO (April 26, 2007) – Nissan Motor Co., Ltd., today announced financial results for the fiscal year 2006, ending March 31, 2007 and filed the following results with the Tokyo Stock Exchange:

  • Net revenues of 10.4686 trillion yen (US $89.48 billion, euro 70.73 billion)
  • Operating profit of 776.9 billion yen (US $6.64 billion, euro 5.25 billion)
  • Ordinary profit of 761.1 billion yen (US $6.51 billion, euro 5.14 billion)
  • Consolidated net income of 460.8 billion yen (US $3.94 billion, euro 3.11 billion).
  • The operating profit margin came to 7.4%.

As previously announced, in order to increase transparency and consistency, Nissan is harmonizing calendar-year results for overseas subsidiaries such as Europe and Mexico with fiscal-year results for Nissan Motor Co., Ltd.

With the exception of China and Taiwan where fiscal-period accounting is precluded by law, all overseas subsidiaries that previously ended their annual periods in December have been harmonized to align with the consolidated fiscal period ending in March. This was done by including an additional quarter of results from January to March for those subsidiaries previously consolidated on a calendar-year basis. Adding this fifth quarter results in a one-time positive impact to fiscal 2006 results of 767.6 billion yen (US $6.56 billion, euro 5.19 billion) in revenues, 21.4 billion yen (US $0.18 billion, euro 0.14 billion) in operating profits and 11.6 billion yen (US $0.10 billion, euro 0.08 billion) to the bottom line net income.

On comparable 12 month periods, Nissan’s global sales were 3,483,000 units, down 2.4%. In the US, sales were at 1,035,000 units, down 4.0%. In Japan, sales were at 740,000 units, down 12.1%. In Europe, sales came to 540,000 units, down by 0.2%. Sales in General Overseas Markets were 1,168,000 units, an increase of 5.1%.

The company’s net automotive cash position stood at 254.7 billion yen (US $2.18 billion, euro 1.72 billion) at the end of fiscal 2006. Nissan will propose a 17-yen-per-share year-end dividend at the company’s annual shareholders’ meeting this June, for a full-year dividend of 34 yen per share for fiscal 2006, as committed.

Nissan Value-Up
“2006 did not boost our results towards achieving the objectives of Nissan Value-Up,” said Nissan President and CEO, Carlos Ghosn. “However, we believe that the commitments are within the potential of the company and we remain focused to deliver them completely. Accordingly, we have decided to extend the period for delivering all the Nissan Value-Up commitments by one year.”

Ghosn noted that tangible progress had been made on the four key breakthroughs in Nissan Value-Up. The Infiniti luxury brand continues to expand globally with its introduction to Russia in 2006, into China and Ukraine in 2007 and across Western Europe during 2008.

Light Commercial Vehicle (LCV) sales globally have grown by 57% to 490,000 units compared to the start of Nissan Value-Up. The LCV business now generates a consolidated operating profit margin of over 8%.

Nissan continues to enhance its overall cost competitiveness. 15% of global sourcing is made in Leading Competitive Countries (LCC) such as China, ASEAN, Mexico, and Eastern Europe, versus 12% last year.

Finally, our geographic expansion has been accelerated by additional investments in Brazil and China, a new plant being established in Russia, and a new partnership with Renault and Mahindra to build a manufacturing facility in India.

2007 outlook
Commenting on the outlook for this fiscal year, Ghosn said fiscal 2007 will be a better year for Nissan than 2006. Rising raw material costs, rising energy prices, rising interest rates, volatile foreign exchange rates, high level of incentives, and a growing number of distressed suppliers and competitors, would remain among the business risks for 2007.

Nissan continues to invest massively for its future within a clearly established long-term strategy, especially in the research and development of breakthrough technologies and innovative products. In 2007, Nissan will launch 11 all-new products globally: Livina, X-TRAIL, Altima coupe, single and double-cab Atlas truck, entry-level sedan for Mexico, Infiniti G37 coupe, Rogue, GT-R, Infiniti EX luxury crossover, Murano and a single-cab version of the Frontier-Navara pickup truck.

Based on the company’s outlook and assuming foreign exchange rates of 117 yen/dollar and 148 yen/euro - which is at the same level as fiscal 2006 - Nissan filed the following forecast for the fiscal year ending March 31, 2008, with the Tokyo Stock Exchange:

  • Consolidated net revenues of 10.3000 trillion yen (US $88.03 billion, euro 69.59 billion)
  • Operating profit of 800 billion yen (US $6.84 billion, euro 5.41 billion)
  • Ordinary profit of 773 billion yen (US $6.61 billion, euro 5.22 billion)
  • Net income of 480 billion yen (US $4.10 billion, euro 3.24 billion)

Note: Amounts in dollars and euros are translated for the convenience of the reader at the foreign exchange rates of 117 yen/dollar and 148 yen/euro, the average rates for the fiscal year ending March 31, 2007.

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APPENDIX

For the convenience of readers who wish to make a direct comparison between fourth quarter 2006 and the same period in 2005, excluding the impact of the accounting change, the totals are as follows:

  • Consolidated net revenues of 2.8238 trillion yen (US $24.14 billion, euro 19.08 billion), up 7.1% compared to 2.6360 trillion yen (US $22.53 billion, euro 17.81 billion) the previous year
  • Operating profit of 223.8 billion yen (US $1.91 billion, euro 1.51 billion) down 7.0% compared to 240.6 billion yen (US $2.06 billion, euro 1.63 billion) from FY2005
  • Ordinary profit of 204.6 billion yen (US $1.75 billion, euro 1.38 billion) down 14.9% compared to 240.4 billion yen (US $2.05 billion, euro 1.62 billion) from FY2005
  • Net income of 70.6 billion yen (US $0.60 billion, euro 0.48 billion) down 53.7% compared to 152.4 billion yen (US $1.3 billion, euro 1.03 billion) from FY2005. Net income was lower compared to last year due to -- by order of decreasing magnitude -- provisions taken for the one-time charge for headcount reductions in the U.S. and Japan, lower profit contribution from equity method companies, and higher taxes.

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