Nissan Motor Co., Ltd. (PNK:NSANY) Q1 2023 Earnings Call Transcript

It’s a matter of course. But we need to serve our customers with integrity. Otherwise, we are unable to fulfill our responsibilities as a company, this is very important. So, if there were such an issue on this front, I want the company to address it. That’s what I expect. Of course, we had many things that happened in the past, so we will continue doing inspection and may put customer first. This is very important for Nissan as well.

Operator: Last question, Bloomberg, [Indiscernible].

Unidentified Analyst: On China market, I have a few points. You said that you will frontload the introduction of [CM cars] (ph). And will this be the bottom of sales and for fiscal year 2024 sales will be positive on year-to-year. And you’ve revised upward the profit for the full-year. How have you factored in the exchange rate and the review of the sales? Can you give us a more detailed breakdown? What factors positively contributed in how many yen and what factors contributed negatively in how many yen. On the second point I will leave it up to Mr. Ma, CFO. Please go ahead.

Stephen Ma: For the revised outlook, as you saw, except for China, rest of the region, the volume increased about 30,000 units since the previous guidance. So, with that, I took a number of roughly 10 billion yen improvement in profit on the 30,000 units. On top of that, the Q1, as you know, the yen was very weak. So, it was weaker than our regional outlook. So we got roughly 20 billion yen better. So, the 20 billion yen of Q1 I took plus additional profit from the 30,000 more units, so that’s a 30 billion yen increase. We kept the remaining quarter Q2 to Q4, still at 1.30 yen to the $1. So, obviously, if yen stays at the current level, we have a little bit opportunity if that happens. Hope that’s clear.

Makoto Uchida: The first question. Right. Going forward, we will be changing the way we do the Chinese operation. Unfortunately, our sales are declining and will this bottom out? I think this was your question. It depends on how China market will evolve. 2024 will be the year where we will continue carefully monitoring. In 2024, the Chinese market competition may intensify. That’s how we see it. Given in this context, how to sustain and grow our Chinese operation will be our key challenge. So, by changing the way we work, will this solve all the problems? I don’t think so. We need to cater to the needs of the customer through products. And if we consist them in these aspects, we need to address this. Otherwise, we will not — we should be ready for the speedy evolution of the Chinese market.

Of course, I want to make changes for the better, but China market remains challenging because we anticipate many changes going forward. So as of today, we will just focus on what we can do now. And for the future growth, we would determine what we should do for the future growth and show it to you when we are ready.

Operator: Thank you so much. Okay. We ran out of time. So with this, we would like to conclude the session. Thank you for joining.