March 25, 2024 10:11 GMT
{JN} Nissan (Baa3/BB+): “The Arc” 3 Year Business Plan
CONSUMER CYCLICALS
Sensible roadmap from Nissan here, credit positives if achievable. With all the OEMs attempting a similar transition, it would be risky to assume value accrues to better margins rather than lower prices. We continue to prefer Ford over Nissan for now.
• ICE models to reduce to 60% of portfolio from 78% currently.
• Targeting 1m+ unit volume growth (~9% annual).
• Targeting 6%+ operating profit by 2026, 8% by 2030 (4.9% currently). Sees new revenue streams in data, mobility and the EV ecosystem.
• Sees EV cost parity by 2030, a 30% EV cost reduction. To be achieved by battery innovations and manufacturing efficiencies.
• Looking at new partnerships in Japan, US.
• Expects positive FCF 24-26, 1T JPY net cash position.
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