Nissan Annual Report 2004 13
1,100
1,000
900
800
700
FY03
OP
FY04
OP
Forex
Scope of 
consolidation
Volume
/mix Sales
expenses
Purchasing
cost  
reduction
Product
enrichment
R&D
expenses
Manu-
facturing 
expenses 
Warranty
expenses G&A
and
others 
824.9 -78
+31
+284
–114
+131
–92
–44 –15 –41
–25.7861.2
Impact on Operating Profit
(Billion Yen)
1,200
1,000
800
600
400
200
0
-200
CashDebt
Net debt 
at end 
of FY03 Net debt 
at the end 
of FY04 
Operating 
activities 
before tax Tax paid Investing 
activities
Dividend 
paid Other 
financial 
activities
FX rate 
impact
+1,082.2
–203.0 –450.7
–26.0
–94.0 –99.1 +10.0 205.8
–13.6
Treasury 
stock
Net Cash Flow (automotive)
(Billion Yen)
PERFORMANCE
Net Income
Net non-operating expenses totaled ¥5.5 billion, ¥9.7
billion lower than last year. This was primarily due to a ¥5.3
billion decrease in financial costs and a ¥5.3 billion
increase in equity in earnings of unconsolidated
subsidiaries and affiliates, thanks mainly to Renault. Net
extraordinary losses totaled ¥62.5 billion, ¥10.7 billion
lower than last year, mainly due to the sale of the site of
the former Murayama plant. Net income before taxes came
to ¥793.2 billion. Income taxes totaled ¥258.0 billion, with
an effective consolidated tax rate of 33 percent. Minority
interests amounted to ¥22.9 billion, mainly from Yulon
Nissan Motor. As a result, net income reached ¥512.3
billion, an increase of ¥8.6 billion.
FINANCIAL POSITION
Balance Sheet
In 2004, total consolidated assets increased by 25.3
percent to ¥9,848.5 billion. 
Current assets increased by 36.4 percent, or ¥1,372.4
billion, to ¥5,139.4 billion. This increase included changes
in the scope of consolidation by ¥271.1 billion and an
increase in sales finance receivables by ¥840.6 billion
thanks to increased sales in the U.S. Fixed assets
increased by 15.1 percent, or ¥616.7 billion, to ¥4,708.0
billion. Property, plant and equipment valuation increased
by ¥593.6 billion, mainly due to capital expenditures of
¥477.5 billion and an increase in leased vehicles. 
Current liabilities increased by 28.1 percent, or ¥872.2
billion, to ¥3,974.7 billion. This increase included changes
in the scope of consolidation of ¥144.4 billion and an
increase in short-term borrowings for sales financing of
¥558.5 billion.
In 2004, total shareholder equity increased from
¥2,024.0 billion to ¥2,465.8 billion. This gain was primarily
due to net income of ¥512.3 billion, offset by dividends
paid totaling ¥101.2 billion. Consolidated shareholder
equity represented 29 percent of total revenues and 25
percent of total assets.
Cash Flow
Cash from operating activities was ¥369.4 billion, below
the previous year’s level of ¥797.4 billion. This drop was
primarily caused by a ¥331.2 billion increase in finance
receivables in the U.S. and Japan. There were also
increases in inventory and income tax paid.
Cash used for investing activities increased by ¥108.9
billion to ¥865.0 billion. This increase was mainly due to an
increase of leased vehicles in the U.S.
Cash from financing activities totaled ¥521.0 billion,
including an increase in short-term borrowing of ¥666.2
billion, offset by ¥94 billion for the payment of dividends
and ¥26 billion for the acquisition of treasury stock.
In total, cash and cash equivalents increased by ¥95.6
billion to ¥289.8 billion from fiscal 2004.