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              [html]<thead><tr><td>We do not want to penalize liquidity improvements.</td></tr></thead><tbody><tr><td>Obviously, cash is a funding source that enables us to</td></tr><tr><td>invest in opportunities such as R & D in a flexible way.</td></tr><tr><td>Liquidity can also have a significant impact on our</td></tr><tr><td>sales financing business, which requires large amounts of</td></tr><tr><td>cash to operate. There has been a high degree of inter -</td></tr><tr><td>company loans to the sales finance companies, but that</td></tr><tr><td>strategy will change after our rating improves. With a higher</td></tr><tr><td>rating we can develop diversified sources of funding. We</td></tr><tr><td>will strive to achieve a healthy balance between the</td></tr><tr><td>diversification of funds and cost efficiencies by utilizing</td></tr><tr><td>sound financial management.</td></tr><tr><td>In terms of the commitment under NISSAN Value - Up,</td></tr><tr><td>we must maintain a 20 percent ROIC on average over the</td></tr><tr><td>course of the plan. I believe that Treasury can confinue to</td></tr><tr><td>play a key role in managing working capital. What we did</td></tr><tr><td>especially well under NISSAN 180 was to improve our</td></tr><tr><td>supply chain management. With the information from the</td></tr><tr><td>new supply chain management system, we succeeded in</td></tr><tr><td>converting our working capital into cash much faster</td></tr><tr><td>than before.</td></tr><tr><td>However, our inventory increased in fiscal 2004. There</td></tr><tr><td>are two reasons for this. First, we increased our inventory to</td></tr><tr><td>prepare for the spring season. As evidenced by the strong</td></tr><tr><td>sales volume so far in fiscal 2005, it appears that our</td></tr><tr><td>decision was correct. The second reason was the</td></tr><tr><td>consolidation of new companies, whose operations are not</td></tr><tr><td>yet as efficient as Nissan ’ s. I believe, though, that we can</td></tr><tr><td>apply our methodology to these newly consolidated</td></tr><tr><td>rchmaniaes ' We - will fines in reducing sunriking ranibl.</td></tr><tr><td>a consolidated basis.</td></tr><tr><td>We will not change our commitment to the NISSAN</td></tr><tr><td>Value - Up dividend plan. Our dividend policy is transparent</td></tr><tr><td>because we have already announced our dividends for the</td></tr><tr><td>next three years. I believe that this benefits our</td></tr><tr></tr><tr></tr></tbody>
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