Nissan Motor Ltd S/Adr

Good evening, everyone. I'm Lavanya Vagankar, Corporate Executive for Global Communications Office. Welcome to Nissan's first half financial results for fiscal year 2025. Along with financial year results today, we will be presenting an update on re-Nissan. Today's session is for 45 minutes and is held on-site as well as online. First, let me start with the introduction of the speakers today. Ivan Espinoza, Chief Executive Officer. Jeremy Papin, Chief Financial Officer. We will begin with the presentation, so I'll hand over to Ivan.

Thank you, Lavanya. Thank you. Hello, everyone. Thank you all for your continued support. It was a pleasure to meet and host many of you at the Japan Mobility Show. Before we begin, I want to emphasize that Renison is on track, and I am grateful to all who have shown patience and trust during these decisive actions. Despite ongoing challenges and volatility, we remain focused on recovery. Today, Jeremy will present our first half performance, second quarter results, and full year outlook. I will then update you on the remiss and progress before the Q&A. So, Jeremy, please. Thanks, Ivan.

Building on the disciplined approach, our cost control measures are showing encouraging signs amid a challenging environment. Now, let's take a closer look at our retail sales results. Total unit sales reached about 1.5 million in the first half, down by 7.3% year-on-year. Second quarter sales, excluding China, were down by 3.6%, an improvement over the first quarter. We are already seeing clear acceleration in Q2, with North America delivering stronger results and China posting year-on-year growth since the month of June for the first time in 15 months. North America saw acceleration with 2% growth overall and 6.7% in Q2. U.S. sales were flat, Mexico up 8%, maintaining market share leadership. China sales declined by 17.6% in H1, but have grown year-on-year for five months, led by M7 demand. Japan dropped by 16.5% in H1, but our showroom traffic has been recovering from a low point reached in July, thanks to marketing and dealer program initiatives. Europe and other markets had temporary declines from model year changeovers and increased competition. First half consolidated net revenue was about 5.6 trillion, with an operating loss of 28 billion, better than we had expected. Net loss was $222 billion, largely due to lower equity method income, impairments of assets, and restructuring costs. The automobile business revenue was about $4.9 trillion, driven by foreign exchange effects and lower wholesale volumes impacted mainly by tariffs. r d spending was controlled at 275 billion through disciplined resource allocation some project deferrals thanks to a shortened development schedule and optimized hourly engineering costs our operating loss widened to minus 177 billion automotive free cash flow was negative 593 billion in H1, but Q2 performed better than expected at negative 202 billion. At the end of the period, net cash stood close to one trillion yen. Importantly, we maintained solid liquidity at 2.2 trillion in automotive cash and equivalents, and unused committed credit lines at 2.3 trillion. This slide shows the year-on-year operating profit variance factors. Foreign exchange had a negative impact of about 65 billion, driven by weaker U.S. and Canadian dollars, as well as the Argentinian peso and Turkish lira. Raw material costs were slightly positive at 3 billion, while tariff had a negative impact of 150 billion. Sales performance contributed 24 billion, but negative volume was offset by a favorable mix. Together, volume and mix delivered $62 billion improvement. However, competitive pressures continued to weigh on incentives. Monozukuri improved by $67 billion as the Reni-San recovery plan delivered cost savings alongside lower R&D spend and purchasing efficiencies. Inflation absorbed $50 billion moderating the overall benefits. One-time items added $65 billion, mainly due to lower warranty costs recognized in Q1 and reduced U.S. emission expenses recognized in Q2. Other items, including sales finance and remarketing expenses, added $45 billion. We achieved a positive impact on G&A costs through Renissan initiatives. Taken together, these factors resulted in an operating loss of $28 billion for the first half. I will now move to the outlook for the remainder of the fiscal year. For the second half, we anticipate a strong rebound in volume driven by new products and marketing initiatives. In China, demand for N7 is encouraging, and sales are expected to exceed previous outlook by 13%. North America is expected to sustain momentum, and we will intensify our efforts in Japan, Europe, and other markets. Although the first six months showed a year-on-year decline, we are confident the next half will deliver growth. The markets remain challenging, but the industry volumes are stable. Our full-year sales forecast remains unchanged at about 3.25 million units, representing a 2.9% decline year-on-year. We are adjusting our outlook to reflect the positive developments ongoing in China, but we are reducing our consolidated retail sales to account for the lower performance of the first half. The production is projected to remain around 3 million units as we maintain the very disciplined inventory management and actively manage supply risk. Recent launches and model enhancements will strengthen the lineup and attract customers in H2. Operational improvements, including a third shift at Nissan Shatai Kyushu, will boost output. Net revenue is expected to be about $11.7 trillion for the current fiscal year. As outlined in our revised outlook last month, we anticipate a full-year operating loss of about $275 billion, break-even before the impact of tariffs. Our operating profit outlook includes 25 billion for assumed supply risk, which we will revisit as the situation evolves. We are still evaluating the impact of ReniSan initiatives, and we are not providing a net income outlook today. The forecast is based on an exchange rate assumption of 146 yen per dollar. Let me outline the factors behind our operating profit forecast. Compared to last year's $70 billion operating profit, we expect significant headwinds from tariffs and currency. On the positive side, we anticipate benefits from an improved product mix and continued support for our U.S.-built models. Year-on-year, we expect cost improvements as Renison initiatives take hold even amid inflationary pressures. Tariff-related car flow adjustment will add cost in the second half, limiting manufacturing efficiency gains. But we are expecting savings in logistics, R&D, and purchasing. One-time positives include lower warranty provisions and reduced emission penalties. Overall, we forecast an operating loss of $275 billion for the year. We remain disciplined in our balance sheet management, and we are retaining sufficient liquidity. Total liquidity is about 3.6 trillion, with 2.2 trillion in cash and 2.3 trillion in unused credit lines. Year-end automotive debt is forecast at about 2.1 trillion, fully in line with our initial plans, And this is following the successful refinancing of $700 billion in debt maturities this year. Let me now hand over to Ivan.