Good morning. As President for Nissan Motor Company, I would like to extend to you a warm welcome and thank you for coming to the Nissan Ordinary Shareholders' Meeting today. In accordance with the articles of incorporation of the company, I will preside over the general meeting today. Allow me to offer our deepest condolences and sympathies to all those affected by the novel coronavirus outbreak. We would also like to express our heartfelt gratitude to health care professionals who are putting themselves at risk on a daily basis to take care of people with many of them on the front lines In order to prevent shareholders from being infected with the COVID-nineteen, this general meeting will be held on a much smaller scale.
Our executives and staff members are wearing a mask as a general rule. Please allow us to take off our mask while speaking so that you can hear us clearly. We will also be maintaining social distance. We would like to ask you for your understanding and cooperation regarding this approach. Now I hereby declare the opening of this 122nd ordinary general meeting of shareholders of Nissan Water Company Limited.
In order to help prevent the spread of the pandemic, seats are arranged as follows: On the observers left on the stage, we have Mr. Kimura, Chair of the Board and Mr. Toyoda, Chair of the Nomination Committee and Director in the front row. In the back row, we have Ms. Ihara, Chair of the Compensation Committee and Director and Mr.
Nagai, Chair of the Audit Committee and Director. On the observer's right, we have Mr. Gupta, Director, in the front row and Mr. Sakamoto, Director and Mr. Ma, CFO, in the back row.
In the front row of the seats for the audience, we have Mr. Delmas and Ms. Rogers, who are all Board members. Directors Mr. Snar and Mr.
Florio are participating from France. And Mr. House is participating from the United States through videoconferencing system. I hereby submit, as matters to be dealt with at this general meeting, the proposed items as stated in the notice of convocation. I have a few requests in order to make this general meeting run smoothly.
Your cooperation would be highly appreciated. Please understand that this general meeting is wholly broadcasted through the Internet in order to give access to people who were not able to join us on-site today. In today's agenda, we will have a questions and answers period after the resolutions are presented. If you wish to make a statement, including questions and motions, please do so in accordance with my instructions during that period. In case foreign directors or officers give an answer or explanation, it will be simultaneously interpreted into Japanese.
Vote non proposed items and motions will be based upon your applause and shareholders' voting, which occurred prior to this meeting by voting forms and the Internet as well as those who voted by power of attorney. Please be aware that the voting results will be determined by all the votes taken that I mentioned earlier. The combined total of the number of voting rights held by the shareholders who have submitted a notice of exercise of voting rights forms or exercised their voting rights through the Internet, I now declare that the quorum necessary to deliberate the agenda of this general meeting has been met. The audit results provided by the independent auditors and the audit committee are attached to Pages 53 to Page 58 in the notice of convocation. The audit committee states that the proposed items and documents submitted for this general meeting are in full compliance with all relevant laws and regulations and with the company's articles of incorporation and has found no specific matters on which to remark.
Now I would like to update you on the progress of NissanConnect's Business Transformation Plan and report the full year results of fiscal year 2020 as well as our action for future development. Following this, we will review with you the items to be resolved today. Nissan is making steady progress in implementing Nissan Next Business Transformation Plan. Let me share with you the performance based on the 3 pillars. The first pillar is rationalization.
On production capacity, in addition to our decision to close 2 plants, we made adjustments, including changes on the work shift. We are on track to streamline our product portfolio with a focus on the core models to reduce associated costs. We are also successful in improving marketing and sales and general and administrative expenses and generating significant cost savings. As a result, the company delivered over JPY 350,000,000,000 in cost reduction over the 2 years exceeding the initial expectation. With this fixed cost reduction, we were we are able to bring down operating profit breakeven sales falling to approximately 4,400,000 units.
Turning to our efforts to prioritize and focus on the company's strength. Nissan made significant improvements in the quality of sales across the globe during the fiscal year 2020. As a step forward to achieving long term profitable growth, Nissan enjoys better profitability, thanks to introduction of attractive products and technologies with value pricing. By shifting the sales strategy from push to pull, we are benefiting from optimal inventory management, better quality of sales and improved operating cash flow. Our enhanced efforts in digital sales experience following the COVID-nineteen outbreak resulted in 12% of our global sales coming through Customer Digital Journey.
In the United States, Nissan improved net revenue per unit while reducing incentives. The customers' response to the all new Rogue has been positive and helped lift our overall market share during the Q4 to 5.8%. Similarly, in Japan, while models like Kix e POWER and Brooks remain strong, the introduction of the all new Note e POWER drove Nissan's overall market share to 11.4% with an increase in net revenue per unit. There are more than 500,000 customers driving e POWER equipped vehicles in our home market, About 50% of the all new node e POWER users adopt ProPILOT advanced driver assistance features. In China, we kept our discipline on incentives while gaining market share.
Despite falling transaction prices in the market, we minimized the impact on net revenue per unit. For the fiscal year 2021, we target an increase in net revenue per unit by leveraging the upcoming new models to meet the customers' aspirations. In Europe, we achieved a significant reduction of fixed costs by rationalizing our production and leveraging the alliance resources. Nissan Juke saw a big improvement in both sales volume and revenue per unit. Nissan will continue electrifying volume selling models, including Qashqai and X Trail by widening e Power application.
We are making investments for future development under Nissan Next. Nissan promised to deliver 12 new products in 18 months, out of which 11 models were launched or unveiled to date. These models will bring growth during and beyond Nissan Next plan. We will deliver a wide range of innovative technology that only Nissan can offer. Nissan continues carrying out the transformation while striking a balance between short term performance recovery and building stronger foundation for the future.
Let me present the results for the full fiscal year 2020. Our global retail sales volume for the fiscal year 2020 was 4,052,000 units, up 0.9% from the previous guidance. Despite a number of headwinds, including the pandemic and semiconductor supply shortage, we boosted our sales in the 4th quarter against the 3rd quarter. Our growth was fueled by the strong Nodie Power in Japan and Magnite in India as well as the existing models such as Juke in Europe and Soffe in China. These are the key financial performance indicators for the fiscal year 2020 on an equity Consolidated net revenues stood at JPY 7,900,000,000,000.
Operating loss totaled JPY 100 50,700,000,000 and resulted in net loss of JPY 448,700,000,000. Net revenues and operating profit decreased year on year primarily due to the decline in unit sales resulting from the COVID-nineteen pandemic, especially in the Q1, as we made tremendous improvement in quality of sales and net revenue per unit while controlling incentives and inventories, our profitability improved quarter by quarter, resulting in smaller operating loss year on year. Given continued uncertainty due to the pandemic, we forecasted JPY 4 1,000,000,000 of operating loss in the beginning of the year. In the end of the year, we were able to reduce the loss to JPY 150,700,000,000 less than onethree of the original guidance. Nissan also hit an operating profit margin of 2% in the 3 month period of Q3 based on proportionate consolidation of our joint venture in China achieving the Nissan X milestone of the fiscal year 2021.
The result demonstrates our potential. Please be reassured that we continue to maintain strong levels of liquidity. Given the negative automotive free cash flow for the past year, the current business climate and the investment needs for the future growth, we decided to suspend dividend payments for the year end. I would like to express my sincere apology to our shareholders for this conclusion. It is imperative to continue investing for the future, carry out business transformation to ensure steady growth and enhance our corporate value.
Your kind understanding and continued support will be highly appreciated. Coming to our full year outlook for the fiscal year 2021. For fiscal year 2021, the global auto market is expected to remain uncertain as the semiconductor supply issue continues to impact the industry, and Nissan is no exception. Though it is difficult to forecast our sales volume for the year at this time, we currently estimate Nissan's unit of sales to increase by 8.6% over the prior year to 4,400,000 units. Based on the assumptions, we forecast consolidated net revenues of 9,100,000,000,000 yen and an operating profit to come out even.
Our net loss is expected to be 60,000,000,000 yen Despite ongoing challenges, Nissan continues investing actively for future growth, including R and D expenses and capital investments. External factors, including foreign exchange fluctuations and increasing regulatory and product enrichment costs are expected to have a negative impact. Performance improvement in sales in monozukuri is expected to have a positive net impact of about JPY 550,000,000,000 While costs associated with new product launches will impact operating profit by JPY 150,000,000,000, these are necessary investments towards achieving Nissan Next and the growth beyond. The company faces huge business risks such as the global shortage of semiconductor and surging commodity prices for the year. Excluding these factors, we expect to achieve an operating margin of more than 2%, including the proportionate consolidation of results of the joint venture operation in China, which is one of the milestones of Nissan NEX.
When we gave the full year guidance back in May, given the uncertainties in the business risks, we forecasted an operating profit to come out even. However, we already see signs of recovery. Thanks to the strong results of our ongoing efforts over the past year, Nissan's performance for April May is better than our plan. The new models that were launched last year continue to gain traction. Customers' appreciation and recognition of our product and technology value are translating into greater profits and brand power.
With the rapid vaccine rollout, we see growing demand in the United States. As we pay close attention to the market trends and adjust production of models, we are minimizing the negative impact of the semiconductor supply issue on the plant utilization rate. At the same time, Nissan is making every effort to make up for the production loss within the fiscal year while taking necessary action to ensure stable parts supply. We are making sure that any impact on the customers who are waiting for our products and our bottom line is minimized. Nissan will keep the momentum and take immediate and timely action on the business risks.
The global Nissan team is working together to implement Nissan and doing everything they can to avoid showing losses for 3 years in a row. This year, Nissan will be launching a number of models that express who we are, including the all new Ariya crossover EV, the all new Z that represents our DNA and INFINITI QX60. We are enhancing our corporate value, profitability and our brand power by introducing electrified vehicles, which no one else but only Nissan can offer. And this starts with the all new ARIA. The all new Ariya attracted about 200,000 hand raisers as of today.
Since we started taking pre orders for the all new Ariya Limited Edition in Japan earlier this month, the model is achieving a good headway with an order placement of more than 4,000 units. The all new Keikar EV, which we are jointly developing with Mitsubishi Motors at NME KV, will be introduced in Japan ahead of our competition. We are also widening the application of the e power system across our models and extending it beyond Japan's success to China and Europe. Through these initiatives, Nissan is determined to get closer to the Nissan Next milestone for this fiscal year as much as possible and pave the way to reach 5% operating margin, which is the final goal of Nissan NEX in the fiscal year 2023. Many of you mentioned about the importance of earning back our stakeholders' confidence.
We all take this to heart as we keep on holding dialogue with our employees and business partners, including dealers and suppliers. We know that trust is something that cannot be rebuilt overnight. However, we are seeing signs of recovery in the findings of various surveys. Nissan's mission is to continue strengthening the ties with our stakeholders and deliver greater shareholder value while maintaining healthy levels of profitability and cash flow. Nissan strives to resume dividend payment as soon as possible by ensuring profitable business growth.
These were the progresses of Nissan NEXT and actual results of the fiscal year 2020 and the fiscal year 2021 outlook. Now I would like to share with you what Nissan is doing for the future. The auto industry is undergoing once in century transformation. We see dramatic changes, especially in the recent years. Examples include accelerated action to fight climate change, technological innovations for achieving carbon neutrality diversification of social and customer needs triggered by aging society and the COVID-nineteen pandemic.
In the times of unprecedented uncertainty, it is crucial to run a business with a clear long term vision for sustainable growth. In the past, Nissan was unable to adapt to changes with flexibility as a result of giving priority to short term profits. Based on lessons learned, we will demonstrate Nissan's long term vision for the next 10 years and beyond and a road map to make it a reality. The basic premise is corporate purpose, driving innovation to enrich people's lives. Nissan has been providing new values to our customers through innovative products and services under the spirit of dare to do what others don't.
This is Nissan NESS and raison d'etre of our company. Though we are not ready to provide the contents of the long term vision, which is under development at this moment, what we can say is that the pillars include electrification and autonomous driving technologies in which our strength lies. Nissan has been working on electrification, autonomous driving technology for long years in pursuit of 0 emission and 0 fatality. Our company has acquired rich know how that others do not have in the process of developing a number of new pieces of technology and products. What we have been building up over the years, even in difficult times, is going to bear fruit.
In order to maintain our competitive advantage in the ever changing industry, Nissan is maximizing the alliance benefits and widening collaborative network with partners who share the same ambition. Nissan is shoring up efforts in electrification. As part of the effort, by the early 2030s, every all new Nissan vehicle offering in key markets will be electrified. We are also driving technological innovation. Nissan is developing innovative battery technology including cobalt less battery and all solid state battery.
In addition to EV, we are updating the e POWER system, the onboard engine that is the dedicated electricity generator for the next generation systems battery achieves the world leading 50% thermal efficiency. We are also seeking economies of scale and greater competitiveness in technology by aligning specifications and increasing commoditization of core components such as battery, motor and platform to about 70% Tochigi plant where we We are introducing the 1st Nissan Intelligent Factory in the Tochigi plant where we will start production of the all new Ariya. Nissan does not only sell cars, but also make various contributions to actual society by leveraging alternative technology that the company has been developing. For example, we have signed over 130 agreements under the Blue Switch program that is designed to address societal issues in Japan by using EVs. In Fukushima prefecture, we are working together with the local authorities and residents in community planning for the future, including EV mobility service.
In the ecosystem centered around the battery, we are using EV as a mobile storage battery, and used EV batteries are given 2nd life through 4R Energy Corporation. We are combining the 2nd life batteries and renewable energy and expect to increase collaboration with energy sector. We are accelerating efforts for new value creation that only Nissan can offer. These are some of the elements of the long term vision which we are currently working on. 1st and foremost, we have to achieve Nissan Next.
We intend to gain visibility of short term performance recovery based on the results of the month of April May and the latest situation when we announced the earnings for the Q1 next month. It is also our intention to communicate the long term vision that is under development around this fall. We already see changes towards the long term vision inside the organization. People are the drivers of the changes. The entire team of Global Nissan fired up.
Every individual is passionately working on transformation. Their hard work is changing people's perception on Nissan. As I have been saying on many occasions, people are Nissan's assets. Nissan surmounted many challenges and adversity thanks to people's power. The top management is leading together all the forces of our people to bring out amazing power of Nissan.
We will definitely make Nissan shine again. Your ongoing support will be greatly appreciated.
Now let me review with you 2 items to be resolved today. The first item is the company's proposal, election of 12 directors due to the expiration of terms of all directors. The term of office for all of the current 12 directors will expire at the closing of this meeting. In accordance with the decision of nomination committee of the company, it is proposed that the 12 directors be elected to 1 year term, which the term will expire as of the closing of 2020 to Jejungmeeting with the shareholders. The candidates are Mr.
Yasushi Kimura Mr. John Dominic Snard Mr. Masakazu Toyoda, Ms. Keiko Ihara, Mr. Moto Nagai, Mr.
Bernard Delmas, Mr. Andrew House, Ms. Jennifer Rogers, Mr. Pierre Florio Mr. Ashwani Gupta Mr.
Hideuki Sakamoto and myself, Makoto Huchida. The candidates and the brief records of their couriers are provided on Page 721 of the notice of convocation. Next, I will move on to Item 2, which is proposed by 1 shareholder, amendment to the articles of incorporation. Disclosure of the contents of the most important contracts, etcetera, for management purposes. The details of the proposal are shown on Pages 22 of the notice of convocation.
The opinion of the Board of Directors of Nissan is against this proposal, and the reasons are as shown on Page 23. With regard to the concerns expressed in the reasons for the proposal, our reply is shown in the communication of this, but please let me make the supplementary explanation. The alliance is their major strength against the competitors. By playing significant roles in contributing to the growth and development of each of its member companies, such framework has been very unique not only in the automotive industry but also in other industries and is an unparalleled successful example which has continued over the last 20 years. This is because the alliance has been based on and relying upon win win principle.
Since long time, the alliance has been contributing to the improvement of efficiency, reinforcement of competitiveness in various fields such as common purchasing of parts as well as common platform and powertrain. The alliance launched the leader follower and reference region scheme last May, which aims at sharing the strength among the member companies and reinforcing further their competitiveness. As part of Nissan NEXT, Nissan is moving forward, building a solid business foundation, which looks ahead to the coming decade, taking full advantage of the alliance framework and its assets. It is also important to carry out strategic operations under the alliance in the case fields, which NISAN should engage going forward. The alliance has, therefore, played a very important role for our sustainable growth.
We cannot disclose Irama's terms and conditions due to our confidentiality obligation. Its restatement in 2015 clearly provides that the autonomy and the independence of Nissan's management is maintained. Furthermore, when Nissan, Renault and Mitsubishi established the Alliance Operating Board in March of 2019. It was confirmed to move forward activities for the development of growth of member companies as well as the value creation for the respective shareholders based on win win principle and with unanimous consent of member companies. This being said, we very much appreciate if you understand that our daily operations have been and are carried out based on the spirit of Alliance, which respects the position of each member company.
As the proposing shareholder is not present today, there will be no supplementary explanation from the proposing shareholder. In addition, the proposing shareholder will not be able to provide response regarding the questions on the shareholders' proposal. This is all the items to be resolved today.
Now it's time for the Q and A session. In the advanced questions we received by e mails prior to this meeting. There are 3 of them. Let me begin by responding to your concern that Nissan's outlook for the fiscal year 2021 is not as strong as other companies. As I presented on May 11, in the earnings announcement, we estimate Nissan's unit of sales to be 4,400,000 units, up 6.6 8.6 percent year on year for the fiscal year 2021.
We are forecasting net revenues of JPY 9,100,000,000,000 and operating profit coming out even. Our net loss is expected to be JPY 60,000,000,000 compared with JPY 150,700,000,000 of operating loss in fiscal year 2020. Nissan is on the track to recovery. As I mentioned earlier, the results for the month of April May show that our performance is improving. We are working very hard to avoid showing net loss for 3 years in a row.
When we announced earnings for the Q1, we plan to review the guidance as we update the business risks. Now let me move on to the subject of dividend for the future. We place the highest priority on continued investments for the future, business transformation and development of strong financial foundation based on steady growth and delivering greater corporate value. Given continued uncertainty in the business environment fueled by global semiconductor shortage, Nissan is not ready to provide dividend forecast as of now. At the same time, we expect to achieve positive automotive free cash flow for the second half of the fiscal year twenty twenty one, which is one of the milestones of Nissan Next.
We will do everything we can to generate sufficient net cash and resume dividend payment as soon as possible. Your kind understanding and continued support will be highly appreciated. Lastly, I would like to talk about executive compensation. To ensure independence, objectivity and accountability of decisions on executive compensation. The compensation committee consisting of 4 outside directors determines executive compensation at Nissan.
I would like to ask Ms. Ihara, who is chairing the compensation committee, to provide further details. Ihara san, please. I am in charge of the compensation. My name is Ihara.
Thank you for taking your time to join us. Let me provide some explanation about the executive compensation. As Uchida san presented earlier, despite strong headwinds, including the COVID-nineteen outbreak and global semiconductor shortage that's up and the commodity price hike, while the business climate remained tough, Nissan worked together to implement the Nissan NEXT. And this was the 1st year Nissan NEXT. And in order to recover the performance, the top executives and the employees worked together as one single team to recover the company's performance.
And if you look at the company result compared with the original guidance of JPY 470,000,000,000 of operating loss, we reduced the loss to onethree to JPY 150,700,000,000. We appreciate the progress that exceeds the initial expectation. Quantitative milestone, the financial indicator is achieved 1 by 1, so the compensation committee appreciates this accomplishment. Compensation committee was established in 2019, and since then, we described the policies and systems and the general principles. According to these policies, general principles, we confirm the level.
But we are not ready to resume the dividend payment because we are on the way for a full recovery. And in order to recover the performance, we want executive officers to make contribution. And appreciating those elements, we determined the level of the executive compensation and paid them to the officers. Thank you very much.
Thank you very much, Iharasan. We are now going to receive questions, opinions and remarks, including the motion. In order to smoothly facilitate the questions and answers session, I have a few requests. I will nominate questioner in order of the ticket number. So that as many shareholders as possible can ask questions, the number of questions and length of time allotted to each shareholder will be limited to one question to be asked within 2 minutes each.
Questioners are requested to use the microphone in the center of the floor so that everyone can hear. You're kindly requested to keep wearing your mask while you ask your question in order to prevent droplets. As I mentioned at the beginning, this meeting is broadcasted through the Internet. So please state your attendance number before asking your questions. And please try to be concise so that we can address as many shareholder questions as possible.
When the proposed items have been fully deliberated, the Q and A session may be closed even though not all persons who held tickets have asked questions. Now we'd like to go on to ticket number 1. Please state your attendance number and then ask your question. Attendance ticket number 1, 2,01. Before I ask a question, I have one proposal and one request.
I would like to explain. When you respond during the Q and A session, Please state your conclusion to the question in the beginning. After you state your conclusion, please then explain the reasons behind your conclusion. I was at the extraordinary session last year. I asked a question last year in the extraordinary session.
My impression of that meeting was that you were like talking at the budget committee in the national parliament. Q and A is not matching. So I would like to ask that please state your conclusion in the beginning and then explain the reasons why, in that order. Mr. Uchida san and Yagasa look forward to your response.
Thank you very much. So let me start with the question. It's about the executive compensation. In the third question, you Ihara san, you explained about the executive compensation. When I heard your explanation, Ihara san, I was hoping that you would say that you'll be reducing the executive compensation.
I was hoping that that would be the message, but there's no such message. It's so unfortunate. You did not announce that you're going to reduce the executive compensation. So with regards to executive compensation, naturally, in the first half, you are not going to pay our dividends, which means that for 2 years in a row, shareholders like ourselves have no dividend. But for the past 2 years, I was surprised by two things about the executive compensation for the past couple of years.
Last summer, despite the struggling performance, with regards to Saikawa san, you applied 401,000,000 of severance pay for Saikawa san, who's responsible for the struggling JPY 400,000,000 JPY 410,000,000 retirement severance payment for SAIKOSA. And also for the 8 executive officers, you paid out a certain amount. I'm sure that many of you have this document in front of you. But in the convocation notice on Page 46, the Japanese version, you will find a list of the payment. And on the bottom, there's reference to executive officers, the amount received by executive officers.
There's number 1502. This relates to 8 officers. So in actually, the 7 persons because some of North American Nissan resigned. So JPY 1502,000,000. So that's like JPY 1,500,000,000, right?
So on a per average, you're paying JPY 200,000,000 per each. This number I'm astounded by this number. And by the way, so with your executive officers over the period, you are going to provide 150,000 shares, which is roughly 120,000 shares per each. Again, quite outstanding number of shares to be provided for these executive officers. I have with me a document for a survey carried out by a company called Niho Soken.
They did a survey about the average executive compensation in Japan. This refers to companies that have 3 statutory committee formats like Nissan. They did a survey of all the executive officers' payment throughout Japan. That's roughly JPY 58,000,000 per that's the average amount. So Nissan is paying roughly threefold the nationwide average for exclusive office space payment.
In the case of outside directors in the case of outside directors, we have the numbers available here. Outside directors also received 2 fold payment compared to the nationwide average. So let me now turn to my concrete question. Sir, it's been 3 minutes since, so if you could please go on to your question, sir. Thank you very much.
So with regard to executive compensation, do you have an intention to reduce excess compensation like you did last year? That's my question. And I would like to ask Do they have any intention to reduce sector compensation even more than they did last year? If not, why not? And in Harasa, earlier, it's talking about 2 fold, 3 fold.
Can you explain, Ihorasan, why is that Nissan is paying a 2 fold, 3 fold executive compensation compared to the nationwide average? Now Ihorasan, you're responsible for reviewing the executive compensation. You should take leadership in reducing executive compensation further. So again, as I mentioned earlier, the order of response should be the order of response should be, sir, sir, sir, Mr. Gupta and Uchida san, in that order.
I would like to invite Nakaguro san to respond to that question, if I may. Thank you for your question, sir. With regard to I would like to respond with regard to the intention of the Executive Officer on their behalf. And then I would like to ask Ihara san, the Head of the Compensation Committee, to respond. So our immediate challenge is in relation to this.
As I mentioned earlier, for fiscal year 2021, we want to avoid loss for 3 years in a row. With regard to compensation for fiscal year 2020, we have been able to deliver the targets contained in Nissan Next. So that being the case, as far as the intention of the executive side is concerned, we do not have any intention of returning the payment like we did last year. Now should the company not grow as we are right now going forward and also if we are not able to provide performance as we indicated in Nissan NEXT, then on that occasion, then we need to consider response. At that juncture, That is the intention and the thinking on the part of the execution side of the company.
Ihara san, could you offer some short supplementary remarks, please? Thank you very much for your question. With regard to the compensation for the executive officers are concerned, You're asking a question as to whether or not this is valid or appropriate. As far as the compensation committee is concerned, we've been able to ensure the validity of this payment. So we believe it is appropriate.
If I may explain it a little bit. First of all, based on basic policy for the compensation scheme, based on various we are deliberating on based on various benchmarks. In the initial year, we set up global benchmark. We did a survey of global benchmark around the globe. We do this every year.
We do this we look at competition in the same industry. This includes automakers who are competition. And also, we include companies on a similar scale or companies with similar complexity in terms of business operations and scale and also global companies like ourselves. We did a survey of all those companies and based them. And we did another survey this year.
We reviewed the response we reviewed the survey and then made our decision based on such review. At the same time, we have also entrusted a third party research firm, an expert firm, to review our decision as well. We did a careful review of the composition committee on this matter. As far as the performance is concerned, we took a look at the performance as well as the progress of Nissanx. We confirmed that at the composition committee.
At the end of the day, we also took a look at the skills and performance and experience of each of the executive officers. So basic compensation and variable compensation were considered. In conjunction, we deliberated on all these aspects. So to the question raised by the shareholder, you asked whether or not this was appropriate. We carefully scrutinized whether or not this was appropriate.
We did a significant review and based on which we achieved our result. Yes, we're still midway in the recovery, and the executive officers are contributing to the recovery so far. Based on that, going forward, we need to take a look at the further progress of NissanConnect. We will confirm the progress of NissanConnect. In case there is no progress in nature, we have to scrutinize the situation at that time.
Also, it's important that the management have been motivated to steadily implement Nissan NEXT. That is our expectation. Thank you very much.
As I said earlier, the result of the survey, you are paying 3x of 58,500,000 yen. You didn't talk about this compared with the average of the benchmark. Could you explain, Ihara san? With regards to that, as I said, we have a benchmarking with other global companies. We have a survey benchmark survey.
And based on the findings of the benchmark, we look at the comparative companies, whether it's a complexity of the business, global coverage, other automakers, after doing this benchmark, we made a decision on executive compensation. That's all. Even if I say more, I don't think I can get more. I don't I didn't get it. Did anyone get it?
I mean, I didn't get it. In a nutshell, why is it 3 times of the average of this research done by a 3rd party institution that I was referring to? So you are not answering my question. But I will just stop here because, I mean, it's meaningless to ask more. With regards to executive compensation, if you have any question about it, please go ahead.
Thank you. Ticket number 2. Number 61. Nissan Aura was unveiled and preorder for a new Aria started. So Nissan is making progress.
I see this in the past 1 year. However, your share price is only at 500 yen level compared with other companies, if I may. Other companies are being appreciated. And Uchida san, your question is as follows. You need to address the share price issue which you are doing.
If you are not paying no if you are not paying dividends, are you taking actions to help this? I mean, last time at the earnings announcement, you said risk management expense was like JPY 150,000,000,000 which was much more expensive than the other companies. Global shorter semiconductor do affect the rest of the industry and Nissan is not an exception, I understand. But this risk management expenses, why do risk management related expenses? And what are you doing in order to get the share price appreciation?
Thank you for the question. Last year, when we since we announced Nissan NXT, we have been focused on strengthening our financial foundation and make sure we enhance the brand image, thanks to new models and grow the company. These were the areas where we focused our efforts on. And share in order to bring back the share price to the healthy level, we need to earn back the trust of the market and recover our performance. From these viewpoints, last year, we have been enhancing quality of sales, which we are progressing in.
In terms of share price, including us and shareholders, our share price is not at a convincing level. But going forward, our strength will be demonstrated even more. So if you give us more time by achieving Nissan Next, we will definitely see the results in our share price. This year, while the COVID-nineteen pandemic remains and we are facing business risks such as the commodity price hike and the semiconductor supply shortage. But as I said, our company's results are improving.
With the new models, we will further enhance our corporate value. And we will make sure we explain the progress of Nissan next. And when people are convinced about this, we will show our long term direction. If we have greater corporate value, this will have an impact on our share price. So could you give us more time?
I hope you understand. Thank you. Okay. Next person, ticket number 3. Sure.
Attendance number 1. 1 is my number. My question is as follows. Audit Committee's audit report is my question. Audit Committee Chair, Moto Nagai san, who is an outside director.
Audit Committee, Is it working well and fulfilling the duties? I still have a doubt on this. I will give you a specific example why what makes me doubt about the performance of the duties of audit committee. Page 58 on the number Line 48 of letter of convocation, you said that there were no serious misconduct or serious violation of laws or regulations. And on Page 58, from Line number 7, executive misconduct.
Based on the executive misconduct, you are ensuring the recurrence prevention and make sure people are reminded of this risk. And we are ensuring the compliance and the stronger corporate governance. You said you confirmed this. That is indicated in the audit report. This audit report, I can't trust this.
I will not trust this. Why? Because in fiscal year 2018, since Ghosn's arrest, the legal violation is become is frequently done. In Article 955, within 2 weeks, you need to make a commercial registration. For example, at this shareholders' meeting, if the first item resolution is resolved within 2 weeks, by 6 July, you need to register the names of the directors who are elected.
But last year, that wasn't the case. On the 29th June was the shareholders' meeting. On by 13th July, you should have made a registration of the names of the directors who were elected. However, you didn't. You did it on the 29th July, which is overdue.
This is a legal violation even after the executive misconduct that was discovered in 2018. Since 120th shareholders meeting, I have been pointing this out. And still, you haven't corrected this. Sai Kawasan, who used to be a CEO, said it shouldn't have happened and apologized. And he said that he will make sure that this will not happen next time and make sure there's no legal violation.
But this promise is not met. Emoto Nagai san, the chair of the audit committee, you said last year at the 100 and 21st general meeting of the shareholders, you said that exec, the business operation will take immediate actions to this, and you are supervising. If I may, sir, if I may, sir. You spent 2 minutes, so please make your question concise. Thank you.
Okay. And still, you are failing to make a commercial resolution by the due date. What kind of supervision are you doing? From audit committee on the business operation, are you supervising and monitoring what has been done by business operation at the Board of Directors meeting? Have you debated on the subject about this failure of the commercial registration and pursue pursue responsibility and ask for rectification to the business?
Thank you for your question, sir. Nagai san, can you answer, please? Thank you for the question. I am the Chair of the Audit Committee. Yes, as you indicated, after we conclude the shareholders' meeting today, the directors, executive officers, if they are the election is resolved, we will hold a board meeting right after the meeting and draft the minutes and make a commercial registration within 2 weeks.
That's what the law provides. So you are right. And last year, I remember what happened last year. Within 2 weeks, we will make sure we do the commercial registration. That's what I told you.
But unfortunately, as you pointed out, last year, it took 1 month to make a commercial registration. We would like to take your observation seriously. For this time, after the shareholders' meeting, there is a board meeting. And we will divide the board meeting to 2 parts. In the first part, we will take care of all the HR matters and immediately draft and generate the minutes of the board and register ask for the Hanko or stamp of the 12 elected directors.
And within 2 weeks, we will make a commercial registration. And I will supervise this so that this is done. Last year, I promised that I will do it. But last year, again, it took 1 month to do the commercial registration, and I would like to express my apology for this. But for this year, we will ask for further improvement and supervise the business side.
Your understanding will be appreciated. Thank you, Nagai san. Thank you for your answer, Nagai san. However, not going forward, last year, you failed to make a commercial registration. Did you talk about it at the Board of Directors meeting?
What kind of supervision did you do over the time over the course of time? That's my question. Please answer. Yes. This is part of compliance effort.
After we adopted 3 statutory committee format at Nissan, audit committee not only audit committee, of course. The majority of the directors are outside directors, as you may be aware. So as the outside directors are concerned, we are supervising and monitoring the performance of duties by the operation side. That's our obligation. So from this viewpoint, not only the chair of the audit committee but other directors are also expressing their opinions and speaking up to the board from this viewpoint.
Thank you, Nagai san. Thank you very much. At the Board meeting, you said that directors are expressing themselves. We I gained access to have the minutes of the Board from the court, So I will look into it by myself. Thank you.
Thank you. Understood. Okay. Next person, ticket number please give us a ticket number and state your attendance number. Attendance number 0412.0412.
This is the first time that I am attending the shareholders' meeting. So I'm a bit I wasn't thinking much before. But I would like to ask about Page 30 of letter of convocation. The net income belonging to the shareholders and the net loss belonging to the shareholder, JPY 448,700,000,000. That's what I want to ask about.
That's the question that I came up with. Well, I am a Nissan user, and I still am a Nissan user. And I used to have many Nissan cars in the past, and I'm a Nissan customer even today. So this is the first time that I am attending this meeting. So ordinary profit profit and loss and net income, could you explain about these two numbers?
That's the question that I came up with. Thank you for your question. With regards this is a question about the financial performance of Nissan. So with regards to this matter, CFO, Stephen Ma, will give an explanation. Stephen, can you answer this?
Hello. Yes, thank you very much for your question. My name is
Hold on. Do you have the receiver, please, sir? So here so we have a receiver here. So could you wear it so that you can hear the interpretation service? Thank you, sir.
Are you ready? Do you hear me okay?
If I understand your question correctly, you're asking about the operating income and the net income appropriate to the shareholders. So if you remember last year, we had several we had some special losses last year below operating profit. As you remember, we had some restructuring losses we had for some operations in Europe that we booked in below OP as special restructuring loss. Also, we had in some countries, we also had still even globally, we are unprofitable. In some countries, we're still profitable.
So we still had to pay income taxes in some of the countries. With those things as well as some of our deferred tax assets based on the accounting rule, based on our situation, we also had to adjust for the calculation down to net income to the shareholders. It's a little technical. I don't know if it's okay in meeting your requirement, but I'll be more than happy to explain in more detail at a separate occasion.
Did that answer your question? If you need further details, we'll be happy to provide further explanation. Yes, please do so. I will appreciate it. I need an additional explanation.
Did that answer your question? Yes, yes, yes. Thank you very much.
Next, your holder, please, your question? Attendance number is 0202. Last year, you talked about restoring confidence. So let me ask a question about your efforts to restore confidence. Now Uchida san, in the beginning, you mentioned the need to restore confidence to regain confidence.
You did refer to this question briefly. Thank you for covering this question in your presentation. And also, you talked about corporate purpose as well. That's a new addition, I believe. So I feel confidence in you.
I feel encouraged by your remarks. But although I think we're still insufficient in terms of regaining confidence. So let me be somewhat harsh in my remarks, if I may. I will now ask a question to Mr. Nagai, who is the Head of the Audit Committee.
Last year, in response to my question, with regard to the dismissal of Mr. Gon, it was not because of 3 party alliance and collusion between the prosecutors, Nissan and also the METI. You mentioned that there is no conspiracy. You clearly mentioned that there is no conspiracy. All of us remember, in November 14, in the TV Tokyo program, there was a scoop about how Mr.
Nissan came to be dismissed. Based on that program, Mr. Harinata sent mail to Mr. Saikawa. Prosecutors want to arrest Mr.
Gon. We need to undermine the trust of Mr. Gon. We need to involve the medium. And we need to have him rest based on exclusive equipment breach of trust.
And also, there's another mail to Saikawa san. We're having discussion with METI, gaining strong support of METI about that matter related to GON. This clearly is an illustration of conspiracy between media, METI, Prosecutor's Office and Nissan. Isn't that the case? Don't you think so?
So in response to my question, at the last year's meeting, you provided a false report. One other point. With regard to misconduct of Mr. Gon, 10.10 billion civil suit is now being carried out. I think you should confirm the misconduct.
I actually went to the court hearing at Yokomo District Court, and this was this took place on February 12, 2020. But then although earlier and a half has passed since then, the concrete proof of such misconduct has not been shown in the court. And these and the results of the survey have not been disclosed to the defense. Such survey should be disclosed at the time that the lawsuit was filed. But at the hearing that took place on 11th of this month, Nissan, who is the plaintiff, has refused disclosure of this survey, and the deliberation ended only after 2 minutes.
In the securities report, you talked about improving the corporate governance and also improving the ethics. And also you talked about appropriate disclosure of corporate information, improving compliance, management based on compliance. You mentioned all of this in your securities report. So Nagai san, let me ask this question. Nagai san, as responsible for the audit of the company, we're not aware of the situation.
Sure. I will end very soon. If the TV report is wrong, then Uchida san and yourself should hold a press conference. Put out a statement. Is it the case?
File a suit against the program. And also the results of the survey about misconduct of Mr. Gong should be disclosed in the court. It should discuss this deliberately. This is an open court.
So what does gaining trust restoring trust for Nissan mean to you? Just depending on the response, Nissan's governance and corporate governance will come into question. Compliance. What extent are you really serious about compliance? That's what I want to value as a assess as a result of your response.
Thank you for your question, sir. With regard to the former Chairman, we have caused so much concern on the part of the shareholders. We apologize. Regaining and restoring trust, This has been something that I have most prioritized ever since I assumed the office. I've never forgotten the need for this at any given moment.
We want to make Nissan shine again. And based on that thinking, on a day in day basis, I am carrying out management all the management team here want to make sure the customers are pleased with Nissan. We're working hard so that we can restore such a trust. Now turning to your question, the so called conspiracy theory. There is no fact to the so called conspiracy theory.
I would once again reiterate this. There is no conspiracy. Now this is a matter that is subject to litigation, so I'm afraid I'm not par for you to talk about details at this juncture. But on this matter, I would like to make the following comment. And if I may, also, Nagai san was on Nagai san if there's a supplementary remarks, I would like to invite Nagai san to do so.
Thank you for your question. First of all, with regard to the coverage by TV Tokyo Television Station, As far as the substance of the report is concerned, we have been confirming the contents of the report. Now some of you may have resolved this coverage by TV Tokyo. The internal mail came out in the program. This was actually falsified.
This was a fake mail. It was falsified. It was intentional. I imagine it came from Mr. Gon's camp.
We've confirmed that the best coverage was based on such falsified and fake e mails. So there is no truth to the program. Also, in February last year, in Yokohama District Court, yes, we filed civil suit. We're seeking JPY 10,000,000,000 in damages. I understand that you were at the court hearing, so you're probably aware of the proceedings.
Mr. Gon has fled outside the country. So it has been a time consuming process compared to ordinary civil suit proceedings. But the report of the and you talked about how internal report has not been disclosed. This is not internal report per se.
In conjunction with the civil suit, we have gathered all the documents that are proof. And based on the request from the other party and the court, we have disclosed and provided all the documents that relate to the proof and evidence of our case. So it is based on this that we want to go forward with this case. With regard to further details, since this is a pending suit, I'm afraid I'm not at parvvy to disclose them. I would appreciate your kind understanding.
Thank you. Thank you. Just one more point, if I may. You said it was falsified or fake. You clearly said it was fake and falsified.
I suppose during the court, we'll be able to confirm and clarify whether or not this was indeed fake and falsified. Also, if I may, you talked about JPY 10,000,000,000 in damages. That's the lawsuit that you have filed that you have filed, rather. It's been 1.5 years since this suit was filed. Did you you mentioned that you clearly carried out internal survey.
So at the time of the suit, you should all everything should be ready when you've actually filed the suit. But 1.5 years has passed. Still, we're not able to hear your defense. Are you really motivated? Are you really motivated about these proceedings?
If the fault lies with defense, I can understand, but you are the plaintiff. But it is based on your position, the suit is not going forward. Are you really motivated to carry out the suit? So you talked about regaining confidence. Are you really serious about regaining trust of the company?
I question that. I appreciate your comments, sir. Thank you for your comment. As we mentioned earlier, we prioritize the we're gaining all the confidence and trust toward the company. We'll do so.
And also with regard to the case, this is a pending suit. I'm afraid we're not able to share the details. But on this matter as well, we will continue to go forward with this matter. We would appreciate your patience a little while longer. Thank you so much, sir.
Moving on to the next question. Please give us your attendance number, please. Yes, attendance number 0414. Thank you. I have been attending this meeting several times, and I came up with a draft or a script.
Let me read it out. The first thing that I would like to tell you, this may sound abrupt, but everyone here would like to I would like to ask whether you have confidence and pride in Nissan Brand. In the first half of twenty seventeen, Nissan Renault Mitsubishi Motors Alliance became the biggest in the auto industry in terms of sales volume. It was just 4 years ago, just 4 years ago. And all the people associated with Nissan used to have confidence and pride in Nissan brand.
But how about today? Do you have confidence and pride in Nissan brand? That's my question. Recovery is slow. It's not you shouldn't just blame on COVID-nineteen.
Is I mean, if I may. Uchida san, Guptasan, leadership. Are you sure you can rely on these 2 new leaders? That's my question, if I may. Incentives?
Is the discounts are the evil? Even if you do incentives, it's better to sell more cars. Don't you think so? Under the GON's leadership, there were a lot of good things. There were a lot of beautiful flowers in Nissan.
You had an ambition to be the global biggest automaker as an alliance with Dream. People will be motivated. This is my question to all of you. Do you have self confidence and pride? Do you have dream and ambition?
Today, you should change your policy and pursue number 1 sales in the global auto industry. But this may sound unrealistic. But in order to motivate the employees and restore confidence of shareholders, you should do something. Thank you. And okay, going to my question.
So this is my idea, Uchida san. First name, Ashwani san COO, Ashwani san and French, Mr. Snar. And this Saturday, in Switch interview, Ihara san will be appearing in the NHK program. What are the strengths and weaknesses of Nissan?
What are the good points and bad points of Nissan? Whether it's a human relationship, culture or sales strategy, anything will do. And all to these four people, I want you to talk about your dream at the same time. Shareholders don't see the real potential of the company. I want to use it as a reference information to make further investment or not.
Thank you for your question, sir. Self confidence and pride. When I was appointed CEO, I think I sent this message. Nissan's power of individual, power of people, this is one of the strength. In order to bring forth the power of people, were we ready to do this?
If you look at the environment over the past 3 years, unfortunately, as you indicated, we were pursuing excessive sales volume push in the short term. As a result, this damaged our brand and damaged our business operation. Having said that, Nissan can do more. That's what I have been telling you on many occasions. And based on this assumption, we announced the Nissan NEXT.
And gradually, we are seeing the results of the efforts. And now going forward, we will increase the earning abilities and enhance the corporate value through new model. Through these efforts, I want to make Nissan shine again. That's the ambition of Nissan Next. So in that sense, we are very confident.
And bringing forth the people's power is the responsibility and obligation of the top management. Nissan Next is the means. And then we will enhance the corporate value. With this strong determination and commitment, we are running the business of Nissan. This is my first message.
Nissan's employees are wonderful. They are our assets. We want to maximize this asset, Ottamans. This is the responsibility of the top management. I will remain focused on this point.
So it's taking time. Compared with other companies, Nissan is not demonstrating its potential. You are totally right on this point. And it's true that we are taking time. But we will definitely do what we promised, and we are executing the plan.
That's what we want to demonstrate. So please be patient with us. Once again, we will make me sunshine again. That's my ambition. You are talking about make Nissan shine again, but could you be more concrete specifically the what is what makes Nissan shine?
In Nissan Next, as I said, we are strengthening foundation, minimum 5% operating margin. That's what we want to achieve. And we will increase the presence in the market 6% market share. These are the KPIs set forth. And in order to enhance corporate value, electrification strategy.
Through these efforts, we want to show the numerical objectives eventually in the outside. But first, we will achieve Nissan next. That is the priority now. Gradually, we see changes in customers' perception on Nissan. If we cannot achieve what we promised, it's the responsibility of the top management.
So with your tough comments and opinions, we want to I want to show that Nissan is improving. Please be patient with us. Thank you. Ashuani san and Mr. Snara, I want to hear from these 2 gentlemen.
Okay. Ashwa Nissan will say a few words. Yes, Ashwa Nissan? Thank you for the question. In December in 2019, I was appointed COO.
And what is my dream? You asked me. My dream is, 1st, Nissan Nest. Ensure Nissan Nest of Nissan brand. That's my dream.
What is Nissan Nest? From my viewpoint, Nissan NESS is love. If you get into Nissan car, I feel love. If you change if you use Nissan technology, it's you feel love. Shareholders deal with Nissan, you feel love.
Our employees when our employees work for Nissan, they feel love. We create love to ensure Nissan Nest. That's my dream. Thank you. Thank you.
Okay. Moving on to the next question. Please give us your attendance number. Attendance
number 7.
The first item on the The first item on the resolution matter, election of the directors. In 2018, when you dismissed Mr. Gon, there were some directors who were there. And I will oppose to electing these directors who were there when we you dismissed Mr. Gon.
The way you dismissed Mr. Gon was the result of taking advantage of media and prosecutors. And as a result, you largely damaged the brand value of Nissan. Even if you want to discharge Mr. Gong, you should have done following the company's act.
Why couldn't you solve the issue within the organization? As a result, you gave an impression that Nissan is too busy on internal conflict. That's the impression that the market has. Net income was at JPY 300,000,000,000 in 2018. And you lied to Gon and Kelly and brought them to prosecutors.
As a result, you came produced a loss of 671,000,000,000 yen 4 47,000,000,000 yen in the next year. You produced such a tremendous amount of losses after these revelations of the misconduct. These directors at the time are not taking the consequence. It's unbelievable. They didn't even take consequence.
They still they are proposed as a director candidate. And this stuns me. Look at Toshiba. You are not even cleansing yourself into unlike Toshiba. I am really disappointed about this, another reason for opposing this.
It's not about the past, but we are talking about today. Since then, there were questions about this subject. Yen 10,000,000,000 of damage claims are what you are making in the civil lawsuit against Mr. Gon. However, this litigation is done to add up the add up the numbers.
So you are not providing evidence. You are trying to you are I heard the information that you are trying to delay this litigation. This is the violation of the duty of care. So I want you to rectify this. So let me give you a summary.
Mr. Gun, in the beginning, was prosecuted for the violation of Financial Instruments and exchange law, which was the misrepresentation of financial statements. Fixed in order to maintain the argument that the compensation is fixed, you did the accounting of JPY 9,000,000,000 on your books. But because you don't want to pay this postponed compensation, you are making a damage claim of 10,000,000,000 yen to Mr. Gon.
This is how people see it. Please make sure this doesn't continue. So the key here, as I said, is Harinada's internal investigation. Excuse me, sir. Excuse me, sir.
You spent 3 minutes already. Yes, I will be concise. So Harinada's internal investigation is not produced to the court. You are just abandoning it. Please stop doing this.
You should follow what has been requested. That's my question and request. Sir, thank you for your opinion. JPY 9,200,000,000 booked. Yes.
And you are saying that we are obliged to pay this. We reckon this as a compensation, but including the deferred compensation, we have reserved the payment. We haven't paid this yet. Between 2017 2018, based on the information that was available, we made a best estimate of the amount of compensation. Postponed compensation is not paid in reality Because that is why we recommend in the book in order to treat make the correct accounting treatment.
You are not producing evidence to the court to delay the litigation. That's my question. With regards to the civil lawsuit, Nagai san will come up. As I we received a similar question earlier. You said that we are not producing evidence, but that is not true.
In accordance is what had been requested by the court. Mr. Gon spent company's expense unjustly. All these evidence has been produced to the court. You said that try to slow down the legal proceeding.
That's not what we are doing or at least we are not aware of this. At least we had 3 court hearings at the Oklahoma District Court. And according to what has been requested by the court, we produce all the evidence necessary. Thank you. We are running out of time, so I got it.
Understood. But just one thing, Uchida san, I have a request. I will be very short. Kelly's trial will have a ruling next month. Tanaka Professor Tanaka of Tokyo University said that Mr.
Kelly is not a criminal. If he is found innocent, please make sure you don't appeal to the higher court and restore the image of company. That's my request, if I may. These opinions and questions are related to the ongoing legal proceedings, so I will refrain from making any comment. Thank you very much.
Moving on to the next one.
Please state your attendance number, please. Thank you. 0066 is my attendance number. The other day at Nikkei Shimbun, there was an article that Seiden's development will be suspended in the Japanese domestic market. As far as Seiden is concerned, there's significant delay in the model development.
But although you need to narrow down on your models, if you carry out product development, I'm sure Sedan will be able to will be successful in stopping the outflow of your customers. And also, the customer session of the general meeting shareholders meeting in February, with regard to new Silphie, I will ask the question. Hoshino san, EVP, commented, this is a model which is highly appreciated, in Central America and Latin America. From Bluebird all the way down to big names, which have continued down the years, Those models should be introduced into the Japanese market. Yes, it is true that the sales of sedan is lackluster, but it's symbolic of your brand.
And so you have Purple Pilot and also you have e POWERHOU to be introduced into the Chinese market. You have product value. And as was mentioned by Mr. Gupta, we need to this is instrumental in expanding the fan base for e POWER. So Skyline entry model, if you maintain this in the domestic market, this will help to restore your brand image.
So what about Sulfi e POWER? Do you have any intentions of introducing that into the Japanese market? And also, what about sedan in the Japanese domestic market? Are you going to suspend sedan sales in the Japanese market? Are you considering that?
Those are my questions. Thank you very much for your questions, sir. So I'd like to refer to the press coverage. We have made no such decisions. We have no intention of suspending about the development of this model in the Japanese domestic market.
I want to clearly state that we have no such we have made no such decisions. With regard to individual models, we cannot cover this in detail at this juncture. But with regard to Skyline, it's not just one model. Nissan is equivalent to Skyline. For many years, Skyline was lubbed by the fans.
And this had driven Nissan's brand. So it's a very important asset for the company. So likewise, we further see our ZZ GT R model. These are all brand drivers for our company. On the other hand, the Japanese domestic market is, of course, instrumentally in size.
And we need to consider the future of sedan's market segment. That's an important issue. So we are prioritizing our focus. We need to do that across the board. We've got to we need to introduce resource into major core models.
It's important that we create models with high added value. So with regard to future product lineup and market trends as well as customers' values, we need to be we need to keep abreast of the changes. We will analyze based on various data and then consider what type of car should be introduced, under what model name. That work will continue going forward. I would appreciate your kind understanding.
Thank you for your question, sir. You're not going to stop the engineering of Sedan, right? No such decision has been made. I would appreciate it. I understand.
No such decision has been made. We need to scrutinize the trends of the marketplace, the customer centers, so that we can deliver. We'll continue to deliberate and deliver products to our customers. That is our work going forward. Thank you for your understanding.
Moving on to next person. Please give us your question. Please state your attendance number. 219. With regards to my question, in fiscal year 2020, 2020 company results, In the consolidated P and L, 20.4 percent decline year on year, JPY 7.86 1,000,000,000,000.
COVID-nineteen outbreak have reduced the sales volume. That's what it says in the business report. But unfortunately, the rest of the companies or carmakers affected by COVID-nineteen. Look at Toyota and Honda. They are restoring the performance towards the latter half of fiscal year twenty twenty, and they are profitable.
For 2 years, Nissan is producing losses. What's the reason for this poor performance? You talked about this, but it's not very convincing. The share price of Toyota in the beginning of this year, it was JPY 8,000 level. However, today, it's less a little less than 10,000 yen There is an appreciation of 2,000 yen And Nissan is at JPY 500 level.
And they were hovering around JPY 500. Last year, it was JPY 300. It was worse. So in these circumstances, what kind of actions are you taking? With regards to action to address share price, I'm not talking I'm not asking about what top management is doing because market is the one who determines the share price.
But you have a revenue but not making a profit, and market sees this. That is why the share price is hovering at JPY 500. Revenue and profit should be produced because you are losing both revenue and profit. How are you going to improve these numbers? Could you give us a thorough explanation?
Thank you for your question and opinion, sir. In Nissan, we announced Nissan Next last May. What did we overstretch in the past years? Rather than quality of sales, we went for volume or number. We pursued excessive sales growth or volume.
This resulted in damaging the brand and was detriment to the corporate value. This is what damaged these elements. Okay. Including the capacity and the size of the company, what should be the right level to attain in the next 3 years. That's what we described in Nissan Next.
And fixed cost reduction is done. Compared with 2018, we aim to reduce by 300,000,000,000 yen But by last year, we reduced 350,000,000,000 yen over the 2 years, excluding the one off factors. And in new models, while we reduce sales incentives, we are increasing the net revenue per unit. That's what we are seeing. As a result, we will definite we are definitely increasing our earning abilities, is true.
And that is why share price is not appreciating as much as we expected. So as I said, this fiscal year, we are faced with commodity price hike and the global shortage of the semiconductors which are the business risks. But against this backdrop, we would like to avoid making net loss 3 years in a row. And to this end, we are working very hard. By doing so, we are also showing what we are going to do in the future, and this will help increase our share price.
And I think this will convince the customers and result in greater corporate value. So first, we are first, we are trying to think how to come back to the 2% operating margin, which is one of the milestones of Nissan Next. That's what we want to focus and bring the performance better so that, that is visible. And then beyond that, we will show what kind of corporate value we can deliver. That's what around this autumn, I'm going to make an announcement about the direction.
Therefore, could you give us more time? Be patient with us. And if we cannot deliver the results, it's the top management will have to look into many things. So could you give us more time and be patient? Thank you very much.
My question, I talked about comparison with other companies. You are not answering this question. Toyota, annually, they are making a profit of JPY 1,000,000,000,000 or so. How about Nissan? For 2 years, you are making a loss of JPY 1,000,000,000,000, right?
And you are not you are being very rude to the shareholders when it comes to this company's results. No dividend. Share price is declining. Come on. So share price, I will not blame you about the share price because it's up to the market to determine.
But I'm talking about the company's results, revenue and profit. What are you going to do to improve these 2? This is the issue. And in the latter half of last year, you didn't increase the enhanced number. And Wichita san, you last year, you said that you're going to introduce 18 new models.
No, 11 out of 18, 11 are unveiled or introduced, I believe. But if you look at Japan, you only introduced 2 new models, which I'm aware of. And there's another model change. That's all you introduced in Japan. So could you elaborate on this point?
[SPEAKER UNIDENTIFIED COMPANY REPRESENTATIVE:] Sir, if I as I said, Japan is our core market, and we will deliver our corporate value here in home market. And the brand power in Japan should help the operations outside Japan and help grow the operations outside Japan. So what we announced in Nissan Next will be implemented will be achieved Last year, in reality, when we whenever I announced the earnings, we showed that we are doing what we promised in Nissan Next, and we will do the same going forward. So please be patient, and I ask for your kind understanding. Well, but in reality, our my dealer I am a Nissan user, by the way, dealer around February.
I was talking to Nissan dealer. And February is a selling season for dealer because the revenue of the year is at the peak in February, but they are not selling well in February. That's what my dealer told me. If I may, sir, you are exceeding the allotted time. So let me go on.
Yes, if you have a specific question, including the one about dealer, we will address it, respond to it appropriately. But you are not answering my question, but please do understand. Thank you.
Next shareholder, please. Next question. Could we have your attendance number first, please? Thank you. Thank you.
437 is my attendance number, 437. Maybe we'll move on to Nippon desan. In terms of automotive technology, I'm concerned about the outflow of your technology. For Nippon desan, Are you going to receive some compensation, if you will, for providing such technology? There was a speculation that Apple Car will be provided by your company.
But now there's a probability that this could be provided from the Nippon desuen platform. Are you going to join the platform? Or are you going to cooperate with people who moved on Nippon desan? Do you believe there is such a possibility or such a need to do so? And because of the so called Apple car, has that probability evaporated or gone?
So can you talk a bit of your response to Nippon Desan Company, please? Thank you for your question. First, in relation to the management of other companies, I am not in a position to offer comment about the management by other companies. As far as our company is concerned, we have been we have know how over the past 10 years in relation to EV, and we want to translate that into corporate value. As far as offer from Apple is concerned, there is no such discussion.
Now going forward though, with regards to electrification, as we go forward with electrification, first partnerships could be possible. We want to maintain insight possibility with partnership with the various companies going forward. So we might be involved not just in automotive industry, but partnership with non automotive industry as well in order to create the next stage in terms of value. We're already at that stage. So that being the case, we would like to continue to give the matter consideration.
Thank you for your question.
Moving on to the next question. Your question, please. Attendance number 230 230. It's a simple question. With the election of directors, there are 12 in total.
If you look at other automakers like Toyota, they are reducing the number of directors to 9. Honda has 11 directors. Why do you need 12 directors at Nissan? That's my question. You talk about the directors, right?
Yes. As after we adopted the 3 statutory committee format, we are based on the lessons learned, we are enhancing the corporate governance and restore the company. And that is why we would like to ask for the suggestion and advice of downside directors who have a rich experience and make Nissan better. In order to enhance corporate governance, we believe this number is the appropriate one. And Nissan is changing indeed.
While I'm serving as a CEO, what is needed for the business operation, With transparency, we are able to discuss about these subjects. This is one big change that we are seeing. So the what caused your concerns in the past will not happen in the future. I that's how I see the current Nissan. Toyota san or do you have anything to add?
Thank you for your question. I'm chairing the nomination committee. My name is Toyoda. I agree with Uchida san. One thing that I would like you to draw your attention to is as follows: our Board of Directors meeting, the diversity of directors and the diverse backgrounds of each director.
This is what I would like to point out. As the company adopting 3 statutory committee format, out of 12 directors, 7 7 are independent outside directors. And these directors are from different background and areas from diverse countries. We have both females and males. So we have diversity in the board.
Nissan is a global company. In order to support this global Nissan, we have gathered diverse talents. And in addition to this, we have the directors from the organizations within the organization. So it's very as a result, it's very global. As Wichida san said, make Nissan
Now as this condensed session has gone on for quite a while, we'd like to limit further comments to just 2 more people. So on ticket number, please state your tennis number and then ask your question. 29, Nissan attendance number 29. I would like to ask about Nissan dealers. Why not have housing related products available in the Nissan dealers?
Why not sell housing and also sell cars because you are a Nissan dealer. But wouldn't that help to improve your revenue and sales? So that is the basis of my comment. Thank you for your comments, sir. As far as Nissan Motor Company is concerned, we want to what funding can we deliver to our customers?
We want to enrich people's lives. From the perspective, we need to, of course, consider how we can improve our value as a member of this industry. Of course, over the medium term, maybe that is one possibility one possible option. In the case of leave though, we are providing leave to home. Sorry, I have a couple of my comments.
Please bear with me. I understand. I understand what you're saying, Ms. Uchida san. So let me start.
I have been having discussions with the Yokohama City. I'm going to have another round of discussions with Yokohama City government on the 25th. I want to improve the finance of the city of Yokohama. And how can we provide products? So in order to improve the financial situation of the city of Yokohama, that is the basis of the discussion that I'm having.
I've already had such discussions in the past with the city of Yokohama. So we want to make those products available in Nissan dealers. So in parallel cars will be sold, but also other products will be made available to Nissan dealers. If I were to make such a proposal, who should I talk to? Who should I talk to if I want to make this idea possible?
I would appreciate your name. Thank you. Thank you for your point. Okay. Going forward, so with regard to the possibility for the future, the person responsible within the company will respond to the comment submitted by yourself.
So we'll contact you subsequently. Through what channel are we are you going to contact me? Through what channel? We know who you are. So probably through phone call, we'll be in contact with you, sir, if there is such a possibility.
Thank you. But we will get into contact with you. Thank you very much. I would appreciate that.
So next person, please, please give us your question. Please state your attendance number before asking your question. Did we cover all the questions already? Next person, is there anyone with the next ticket number?
As full discussion of such matters for this meeting has occurred, I would like to close the Q and A session and proceed to take a vote on the proposed items. From this point onward, we'll only be taking a vote on the proposed items. Please understand that we will not accept any comments, including any motions from this point onwards. Now I would like to proceed to take a vote of the proposed items. The vote will be based upon your applause and shareholders' voting, which occurred prior to the meeting by voting forms and the Internet as well as those who voted by power of attorney.
I would like to take a vote on Item 1, which is election of 12 directors to the expiration of terms of all directors. I would like to express your affirmative votes by applause. Thank you. I declare Item 1 approved as proposed by majority of shareholders. Next, I would like to take a vote on the Item 2, which is amendment to the articles of incorporation, disclosure of the contents of the most important contracts, a structure for management.
As explained earlier, the Board of Directors of Nissan is against this shareholders' proposal, but I would like you to express your affirmative votes by applause. Thank you. Since we were unable to confirm the approval of 2 thirds of the members, this item was rejected. Thank you. We have concluded all of the items set out for today's general meeting.
I would like to express my sincere appreciation to all of the shareholders for your serious deliberation and your valuable time. Before we close the meeting, allow me to say a few words. Nissan is on its way to recovery. We are lagging behind the competitors. My experience in the past one and a half years has been a journey of rediscovery.
I discovered the assets and excellence of Nissan and the beauty of Nissan that sets us apart from others despite challenging times. We witnessed Nissan's power and passion to deliver customer value despite the hardship. I was amazed by the world's expectation and enthusiasm toward all the new area and the new symbols of Nissan. I was encouraged to renew my commitment to make Nissan shine again. We need to keep on working every day to earn trust back.
I want all of you to eventually say this is what I expect from Nissan. We will continue working as a team to make Nissan shine again.