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Nissan Motor Co Ltd NSANY

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Nissan Ends Tough Fiscal 2020 With Turnaround Progress: Maintain JPY 1,480 FVE

Richard Hilgert Senior Equity Analyst

Analyst Note

| Richard Hilgert |

No-moat-rated Nissan reported a fiscal year 2020 (ended March 2021) loss per share of JPY 114.67, JPY 7.39 better than the FactSet consensus loss per share of JPY 122.06 and cutting losses by JPY 56.86 compared with the JPY 171.54 reported a year ago as the company continues to turnaround operations. While automotive revenue dropped 21.5% year over year to JPY 6.84 trillion, unit volume declined at a faster pace, by 23.3% to 2.6 million vehicles. The revenue percentage change outperformed volume as average revenue per unit improved 2.3% with average incentives down 1.6 percentage points and rental fleet mix dropping 5 percentage points year over year.

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Company Profile

Business Description

While Nissan sells about 4 million vehicles, the combined Renault-Nissan Alliance sells about 10 million, placing the alliance in the top three of all automakers in the world. Nissan's financial services subsidiary provides consumers with auto loans and leases. In addition, the subsidiary also finances Nissan's sales to its dealerships (known as floor-plan financing). Nissan is 43.4% owned by French automaker Renault, while Nissan in turn owns 15% of Renault. The Alliance also has controlling interests in AvtoVAZ (Lada) in Russia and Mitsubishi Motors in Japan.

Contact
1-1, Takashima 1-chome, Nishi-ku, Yokohama-shi
Kanagawa, 220-8686, Japan
Sector Consumer Cyclical
Industry Auto Manufacturers
Most Recent Earnings Dec 31, 2020
Fiscal Year End Mar 31, 2020
Stock Type —
Employees 153,731

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