■Performance Trends
3. topics
Topics as corporate actions for the fiscal year ending 2024/3 are the transition to the standard market and the transfer of all shares in Tokyo Nissan Computer Systems. Nissan Tokyo Sales Holdings (8291) transitioned to the standard market in 2023/10. It can be said that it is an action aimed at improving medium- to long-term corporate value with the aim of concentrating management resources on medium-term management plans and focusing on further growth and strengthening profitability. The Tokyo Nissan Computer System was excluded from consolidation on 2023/10/2, but as described above, in order for the company to grow sustainably, management resources will be concentrated on automobile-related businesses, and the Tokyo Nissan Computer System is also intended to grow further through synergy with the transfer destination Canon Marketing Japan. In addition, reconstruction support for the Noto Peninsula Earthquake, donations to traffic orphans, and “social contribution promotion projects” were carried out as topics related to contributions to local communities.
The impression is that sales are conservative, but the policy is to make good use of costs
4. Earnings forecast for the fiscal year ending 2025/3
Regarding the earnings forecast for the fiscal year ending 2025/3, the company expects sales of 150,000 million yen (up 0.7% from the previous fiscal year), operating income of 7,500 million yen (down 13.9% from the same period), ordinary income of 7,000 million yen (up 16.3% from the same period), and net income attributable to the parent company of 4,500 million yen (down 38.7% from the same period). The idea is to continue to aim for business growth and strive to improve corporate value by steadily promoting medium-term management plan initiatives such as enhancing human capital for sustainable growth and store investment to improve customer convenience.
The number of new car registrations sold continues to be centered on sales centered on electric vehicles, but since car deliveries have been normalized, it is expected to be around 27,000 units (2.6% increase from the previous fiscal year). Meanwhile, with regard to unit sales prices, the price range once settled down with the availability of electric vehicles, so it seems that they are not seeing an increase due to the car model mix. Also, according to Nissan Motor's strategy, it is impossible to anticipate the introduction of an impactful new model, and since it is necessary to cover the performance of the Tokyo Nissan Computer System for half a year, it seems that the view is cautious. In addition, there is an impression that sales are somewhat conservative when considering the year-round contributions of the Aria, which is the flagship EV car that has resumed receiving orders due to the normalization of vehicle supply, and individual leases where an increase equal to or higher than the previous fiscal year can be expected because attention is increasing. In addition, there are many factors boosting sales, such as receiving full price evaluations under EV subsidy conditions, the fact that 4 newly constructed/renovated stores are scheduled to be completed, including the Higashifushimi store (completed in 2024/4), the fact that EVs are drawing attention due to the entry of China BYD, which is the world's second largest EV manufacturer, and continuing to promote a full lineup of highly rated electric vehicles through proposed sales. Sales of used cars and maintenance are expected to increase slightly, but since used car individual leases are steadily being launched, and the “vehicle inspection office” is trying to increase the number of units received by further promoting efficiency in maintenance, there is an impression that these sales are also conservative.
Meanwhile, in terms of cost, as the Japanese economy and vehicle shortages normalize, in addition to rising prices, an increase is expected due to increased investment in human capital, stores, work environment improvements, etc. for sustainable growth. Regarding human capital, in addition to increasing the number of new graduates and mid-career hires to secure human resources, the policy is to actively invest in work style reforms, education, etc. Stores are planning to invest in replacing test drives of electric cars with the latest ones in order for customers to experience more advanced equipment. Also, in order to support electrification, safety/driving support technology, it is also planned to introduce cutting-edge maintenance equipment such as measuring equipment. Therefore, as the effects of the integration of the three sales companies gradually decline, there is a possibility that it will be a year with a slight cost push.
(Written by FISCO Visiting Analyst Miyata Hitomitsu)