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              [html]<thead><tr><td>mission is to maximize the value of Nissan by</td><td>floor plan count. By the end of fiscal 2004, that</td><td>providing competitive financial products and exceptional customer service. We are continually</td><td>had increased to 595. It ’ s a profitable business, and one that sets the stage for a strong overall</td></tr></thead><tbody><tr><td>striving to support our customers by being an</td><td>relationship with the dealer.</td><td>integral component of the Nissan North America</td><td>On the cost side of our busineess, we have</td></tr><tr><td>sales and marketing plan, being the first choice</td><td>effectively managed our operating expenses,</td><td>of dealership financing, and by being the</td><td>which represent another KPI. From the begin</td></tr><tr><td>preferred lender to Nissan and Infiniti retail and</td><td>of fiscal 2003 to the end of fiscal 2004 we</td><td>lease customers. Since we mainly contribute to</td><td>improved our operating efficiency metric by o</td></tr><tr><td>the Nissan global profit objective when a car is</td><td>20 percent, and continue to be among the</td><td>sold, we work closely with Nissan North America to support this sales process. Our overall market</td><td>industry leaders in cost structure. Regarding our funding strategy.</td></tr><tr><td>penetration — one of our key performance</td><td>approximately fifty percent of funding comes</td><td>indicators, or KPI — was strong in fiscal 2004 at</td><td>from asset - backed securitization, making tha</td></tr><tr><td>49.7 percent for retail and lease combined. That</td><td>our largest funding source. However, that</td><td>means nearly nat of all retail Nissan and Infintivehicles sold in the U. S. are financed through</td><td>proportion nas been decining because we began using a variety of other funding source</td></tr><tr><td>Infiniti Financial Services or NMAC.</td><td>including commercial paper and bonds, after</td><td>Performance during NISSAN 180 was very</td><td>our ratings improvement. As a result, our</td></tr><tr><td>strong as well, with penetration and profit levels</td><td>dependence on Nissan North America for</td><td>higher than our budget objectives for all three</td><td>funding via inter - company loans will be reduced in the future.</td></tr><tr><td>but also as a result of our tight controls we kept</td><td>Under NISSAN Value - Up, we will work clo</td><td>on loss ratios, which we accomplished through</td><td>with Nissan Motor Co., Ltd. and Nissan North</td></tr><tr><td>good buying practices and closely managing our</td><td>America to provide additional sales - financing</td><td>portfolio. In fact, roughly 75 percent of our</td><td>capabilities in new global markets, which can</td></tr><tr><td>portfolio is categorized as Tier 1 and Tier 2,</td><td>a key to increasing sales volume. To achieve 1</td><td>based on the FICO or Fair Isaac & Company</td><td>same kind of success we have achieved in out</td></tr><tr><td>score. As a result, in fiscal 2004 our retail loss</td><td>new Mexican sales - financing efforts under the</td><td>ratio was 1.1 percent, and our lease loss ratio</td><td>NISSAN 180 plan, we will support the global</td></tr><tr><td>was 0.4 percent. Both ratios have improved</td><td>Infiniti expansion and other geographic growt</td><td>since the previous year. We also grew our dealer</td><td>including developing financial products for the</td></tr><tr><td>inventory - financing portfolio. At the beginning of</td><td>light commercial vehicle market.*</td></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr><tr></tr></tbody>
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