I am Takashi Tomiyama, newly appointed President of Nissan Shatai Co., Ltd.

In the fiscal year that ended in March 2024, a moderate recovery of the Japanese economy was seen due to the improvement in the employment situation and income environment, while on the other hand a condition continued in which monitoring the impact of price rises and the situation in the Middle East region, etc. was necessary.

Regarding the environment surrounding the Nissan Shatai Group, production activities recovered compared to the previous fiscal year which was impacted by the constraint on economic activities arising from the spread of the COVID-19 infections and supply problems for some parts, but we ended up in a tough situation due to component supply shortages caused by the impact of the Noto Peninsula Earthquake which occurred in January 2024, and other factors such as demand fluctuations.

In this environment, the volume of orders from Nissan Motor Co., Ltd. decreased by 2.0% compared to the previous fiscal year to 139,121 units. Net sales decreased by 2.1% to 301 billion yen mainly due to a decrease in the volume of orders for passenger vehicles such as the ARMADA, etc., even though sales of commercial vehicles such as the NV200 Vanette, etc. grew.

Looking at income and loss, the operating income/loss decreased by 77.7% to 900 million yen due to the decrease in the volume of orders, deterioration of model mix, impact of market fluctuations, and other factors, ordinary income decreased by 72.8% to 1.3 billion yen, and profit attributable to owners of parent decreased by 89.5% to 400 million yen.

Our three major businesses are as follows.

The first business is "commercial vehicles and premium cars."
Through the evolution and deepening of uniqueness, we will work toward the enhancement of manufacturing technological capabilities and productivity, and raise the added value of the products to expand profits and the number of units sold.
The second business is "specially equipped vehicles."
In the specially equipped vehicle business, in which future growth potential and high profitability can be expected, we will work toward business expansion by responding rapidly to the diversifying needs of our customers.
The third business is "support businesses."
We will work toward expansion of production volume and business volume in our full range of support businesses, including service parts, engineering consignments, prototyping, molds and tools, and facilities.

Last fiscal year, Nissan Shatai has started a Medium-Term Management Plan covering fiscal years 2023 to 2027 with an awareness of the environmental changes of "the necessity of a response to climate change," "changes in the needs of the market," "increase in the societal responsibilities required of companies" and "changes in the working population and the awareness of employees."

Taking into account these environmental changes, we have defined our Vision for our Future as "Contribute to society through our commercial vehicles, premium cars, specially equipped vehicles, and support businesses and become the one and only presence trusted by our customers" and we are working to expand these three major businesses.

The first pillar is "Sustainable corporate foundation."
In this Medium-term Management Plan, we advocate a "Sustainable corporate foundation" in as the central pillar of our activities, and we are tackling ESG issues, namely "environmental," "social" and "governance" issues to promote business activities centered on sustainability.
The second pillar is "Creation of appealing products."
Firstly, there is the new model INFINITI "QX80" for North America which Nissan Shatai Kyushu commenced mass producing in April.
In the current fiscal year, we plan to gradually commence mass production of new model frame vehicles for the Near and Middle East and other vehicles, including variant models, so please look forward to the new vehicles.
The third pillar is "Evolution and deepening of uniqueness."
Regarding technology development, From the current fiscal year onward, we will continue to work on the buildup of technologies which realize the efficient production of service parts, as well as new items focused on CASE going forward.

In the second fiscal year of the 2023-2027 Medium-term Management Plan, Nissan Shatai wants to further enhance trust from stakeholders by bolstering integrated manufacturing operations that extend from development to production, which is our strength, and working to improve legal compliance and corporate governance.
Going forward, we will continue to devote ourselves to manufacturing high-quality, safe and environmentally friendly vehicles that offer our customers reliability and satisfaction.