18 NISSAN Annual Report 2012 Corporate Governance Corporate Data Performance Innovation & Power of brand Year 2 Power 88 Financial Review NET INCOME Net income  Financial Position Balance sheet Free cash flow and net cash (auto business) Net non-operating profit deteriorated 11 billion yen from  positive 0.3 billion yen to negative 10.7 billion yen in fiscal  2011. The negative impact came from the equity in  earnings of affiliates by 23.9 billion yen, from 43 billion  yen to 19.1 billion yen in fiscal 2011. As a result, ordinary  profit totaled 535.1 billion yen, which was deteriorated by  2.7 billion yen from 537.8 billion yen in fiscal 2010. Net extraordinary losses totaled 5.8 billion yen, an  improvement of 51.9 billion yen from the previous year’s  loss of 57.7 billion yen. This improvement was due mainly  to the positive impacts such as decrease of loss on  disaster by 9.7 billion yen, gain on negative goodwill by  24.1 and gain on sales of investment securities by 8.1  billion yen. Taxes totaled 151.5 billion yen, an increase of 19.4  billion yen from fiscal 2010. Minority interests had a  negative contribution of 36.4 billion yen in fiscal 2011. Net income reached 341.4 billion yen, an increase of  22.2 billion yen from fiscal 2010. Current assets have increased by 4.2% to 6,610.1 billion yen compared to March 31, 2011. This  was mainly due to an increase in trade notes and accounts receivable by 81.1 billion yen, sales  finance receivables by 463.5 billion yen respectively, despite a decrease in cash on hand and in  banks by 233.4 billion yen. Fixed assets have increased by 1.6% to 4,462.0 billion yen compared to March 31, 2011. This  was mainly due to an increase in construction in progress by 156.7 billion yen. As a result, total assets have increased by 3.1% to 11,072.1 billion yen compared to March 31,  2011. Current liabilities have decreased by 5.4% to 4,145.2 billion yen compared to March 31, 2011.  This was mainly due to a decrease in short-term borrowings by 348.5 billion yen, commercial  papers by 218.2 billion yen respectively, despite an increase in trade notes and accounts payable  by 195.8 billion yen. Long-term liabilities have increased by 12.8% to 3,476.8 billion yen compared to March 31,  2011. This was mainly due to an increase in long-term borrowings by 455.5 billion yen. As a result, total liabilities have increased by 2.1% to 7,622.1 billion yen compared to March 31,  2011. Net assets have increased by 5.4% to 3,450 billion yen compared to 3,273.8 billion yen as of  March 31, 2011. This was mainly due to net income of 341.4 billion yen, despite an increase in  translation adjustments (loss) by 72.1 billion yen. For fiscal year 2011, Nissan achieved a positive free cash flow of 379.5 billion yen. At the end of  fiscal year 2011, our net automotive debt improved significantly from last year to a net cash  position of 619.8billion yen. The debt structure has also improved, since the company reduced its  reliance on short-term borrowing. We continue to maintain a close focus on our inventory of new vehicles. Inventory stood at  770,000 units at the end of fiscal 2011. The company continues to manage inventory carefully, in  order to limit its impact on free cash flow. (Billions of yen) 600 450 300 150 0 −150 −300 ’10 ’08 ’09 319.2 (Forecast) ’12 400.0 ’11 341.4 –233.7 42.4