PERFORMANCE NISSAN Value-Up: Sustaining Performance Nissan’s position today is much different than it was six years ago or even three years ago. In 1999, we were in crisis, and the Nissan Revival Plan was needed to revive our company and build a future. In April 2002, when NISSAN 180 began, we wanted to complete the revival process, with an emphasis on profitable growth.  NISSAN Value-Up is about sustaining performance. About taking all the gains we have made in connecting with our customers, in growing volumes, in creating value, in earning profits, in improving management— and then building upon these gains.  With NISSAN Value-Up, you will not see a radical break from NISSAN 180. This plan is evolutionary, not revolutionary. We will take the core elements that got us to this point—namely, more revenue, less cost, more quality and speed, and maximized Alliance benefit with Renault— and build upon them. NISSAN Value-Up has three critical commitments: Profit: Nissan will maintain the top level of operating profit margin among global automakers for each of the three years of the plan. Volume: Nissan will achieve global sales of 4.2 million units measured in fiscal 2008. ROIC: Nissan will achieve a 20 percent ROIC on average over the course of the plan, based on the new formula that excludes cash on hand from the denominator. NISSAN Value-Up will oversee 28 new models, resulting in the start of production of 70 models worldwide, over two dozen more than the 44 production starts during NISSAN 180. Of the 28 new models, 18 will be replacements for existing models and 10 will be completely new “conquest” models. We will enter more new segments, and we will introduce six models that will delight customers by being completely innovative in their concept and benefits. We will pursue four major breakthroughs while implementing NISSAN Value-Up:  • 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 (LCV) business into a fully competitive global operation through new market and product entries. By 2007, we plan to increase our LCV volume by 40 percent from fiscal 2004 to 434,000 units. During this period, operating margin is targeted to double from 4 percent to 8 percent. • 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 toward being fully integrated global operations. • We will continue to invest in new and emerging markets, including China, India and Russia. Nissan Annual Report 2004 10