Volume: Nissan will achieve global sales of 4.2 million units in fiscal 2008—an increase of 812,000 units over fiscal 2004. ROIC: Nissan will achieve a 20 percent or higher return on invested capital on average over the course of the plan, excluding cash on hand. What should investors expect from Nissan’s share price?  Over the long-term, share prices reflect fundamentals. But in the short-term share prices are driven by performance against expectations. In Nissan’s case, recent share price trends signal market expectations that greater uncertainty will result in lower growth. So our challenge is to both manage those expectations and to exceed them. This supports our belief in a high level of disclosure and transparency. Our business plans and commitments, and our ability  to communicate our strategy clearly, are the most effective means to convey transparency. But we recognize that financial announcements alone are no longer sufficient communication for the markets. We need to provide more forward-looking information and to avoid surprises that create uncertainty for shareholders and investors.  We intend to serve the professional investment community better in fiscal 2005. We will also extend  our welcome to individual investors—whose numbers  grew by 51,323 in fiscal 2004, increasing our list to 193,000 shareholders.  That growing interest in Nissan was apparent in the turnout of more than 1,800 people at our June 21 shareholders’ meeting in Yokohama. Questions from the shareholders were many and varied, but it was encouraging to hear in each one a passionate commitment to Nissan.  This year, and in the future, I hope we merit such support from all our shareholders as we create lasting value in a transparent way. NISSAN Value-Up also delivers increased value for our shareholders through a clear and well-defined dividend strategy. By the end of the plan period, we will pay an annual dividend of no less than ¥40 per share, a 66 percent increase over fiscal 2004. During NISSAN Value-Up we will pursue several key business opportunities: Our investment in advanced technology continues. From fiscal 2002 to 2005 we have increased spending  on research and development by 50 percent. Over the next three years we will invest a further 5 percent of net sales annually, creating new and exciting technologies to benefit  our customers. To meet this commitment, over the NISSAN Value-Up period we will launch 28 new products, including 10 models that are highly innovative in their concept and benefits. Share price performance LETTER FROM CEO Nissan Annual Report 2004 3 Carlos Ghosn President and Chief Executive Officer • Our Infiniti luxury brand will extend its reach into new markets such as China and Russia and continue to establish its credibility as a Tier-1 luxury player. • We will develop our Light Commercial Vehicle business into a fully competitive global operation through new market and product entries. • We will take a more efficient global sourcing approach to maximize our opportunities and minimize our overall costs as we grow. Our engineering, production and purchasing functions will continue their acceleration towards being fully integrated global operations. • We will continue to invest in new and emerging markets, including China, India and Russia.