Improving productivity and synergies across the group network centered on 3 sales companies

「Following the integration of the 3 Nissan sales companies in FY2021, we continued efforts to optimize selling, general and administrative expenses, resulting in operating profit of ¥6,399 million, up ¥1,992 million, or 45.2%, year on year」

「In addition, through the integration of 3 Nissan sales companies carried out in the prior fiscal year, we continued to further implement consultative selling tailored to customer needs, improve earnings power in the used-vehicle business and reduce selling, general and administrative expenses. As a result, operating income reached a record high of ¥4,689 million, up ¥2,173 million, or 86.4%, from the same quarter of the prior year; ordinary income reached a record high of ¥4,558 million, up ¥2,099 million, or 85.4%; and quarterly net income attributable to owners of the parent reached a record high of ¥2,752 million, up ¥1,378 million, or 100.2%.」

「Following last year's integration of the 3 Nissan sales companies, we further strengthened consultative selling tailored to customer needs, improved profitability in the used-vehicle business and worked to reduce selling, general and administrative expenses」

「Achieved record-high profit through thorough consultative selling tailored to customer needs, expansion of the used-vehicle and service businesses, and reductions in selling, general and administrative expenses」

「In addition, the integration of the 3 Nissan sales companies generated benefits from higher productivity and lower selling, general and administrative expenses」

「The integration of the 3 Nissan sales companies improved productivity and reduced selling, general and administrative expenses, enabling us to secure earnings broadly in line with the plan. In new vehicle sales, despite insufficient vehicle supply, we increased profit by working to secure orders and earnings, primarily for the new Note, new Aura and Kicks e-POWER vehicles, which continue to be well received, as well as the Leaf electric vehicle, Serena, Dayz and Roox. Used-vehicle unit sales declined owing to a decrease in trade-in vehicles, but earnings exceeded the previous year's level due in part to favorable used-vehicle market conditions. The service business also reported higher profit. As a result, revenue was ¥97,228 million, up ¥5,417 million, or 5.9%, year on year, and segment profit (operating profit) was ¥2,818 million, up ¥1,595 million, or 130.4%.」

「Based on a resolution of the Board of Directors meeting held on 20 January 2021, effective 1 July 2021, we completed an absorption-type merger in which our consolidated subsidiary 日産プリンス東京販売株式会社 was the surviving company and our consolidated subsidiaries 東京日産自動車販売株式会社 and 日産プリンス西東京販売株式会社 were the absorbed companies, together with the related corporate name change.」

「To further advance this medium-term management plan, we plan to integrate our major subsidiaries, 東京日産自動車販売株式会社, 日産プリンス東京販売株式会社 and 日産プリンス西東京販売株式会社, effective 1 July 2021, and establish the new company 日産東京販売株式会社.」

「The purpose is to achieve sustainable growth by integrating the 3 sales companies, optimizing our group's business resources and personnel allocation, improving efficiency and synergies in all areas, and pursuing new initiatives.」

「Because both our group and ＧＴＮＥＴ株式会社 are primarily engaged in automobile-related businesses and are highly compatible, we decided to enter into a capital and business alliance, believing that maximizing synergies, including by sharing best practices, would increase the corporate value of both companies.」

「In addition to the strategies of the 3 sales companies (東京日産自動車販売㈱, 日産プリンス東京販売㈱ and 日産プリンス西東京販売㈱), we will continue to expand and develop the horizontal deployment of best practices across the group, improving customer satisfaction (CS), thoroughly standardizing operations and further increasing productivity.」

「At the 3 sales companies at the core of the group (東京日産自動車販売㈱, 日産プリンス東京販売㈱ and 日産プリンス西東京販売㈱), we will seek to further improve productivity and achieve additional growth. We will also expand synergies across the group network centered on these 3 sales companies, further pursue demand outside the group and stabilize earnings.」