Nissan Motor Co., Ltd. (PNK:NSANY) Q3 2023 Earnings Call Transcript

So a combination of FX, cost control is enough to offset the volume drop versus the previous volume guidance. So that’s how to understand the ¥620 billion. Finally, you asked about the sales volume other than US and China, which is Europe and Japan. The situation is very similar. In the Europe market, I think the increase on Q3 to Q4 is almost 40,000 units increase. Half of that is where we are readjusting and updating our strategy. So we are making sure we are competitive in our offerings in terms of price or incentive. Also, we pumped in more in marketing. So we’re intensify marketing. So that’s about half of the 40, 000 units and then about another 8000 or 9,000, maybe 10,000 units is because annually in UK, the license plate change in March.

So usually we get a bump from that since we are very strong in the UK market. And lastly, the last 10,000 units roughly is because we have improved supply of the EVs, the LEAF and the Ariya as we got deliveries, which was a little bit held back in the Q3. So Europe, no issue for the growth in Q4 versus Q3. Similarly for Japan, we have the new model year 24 notes and days. And based on what I’ve seen in January sales, they’re going very well. The new Serena e-POWER, we’re getting more supply of that and it’s very, very popular. I’ve already sold several of them to my friends and other colleagues. So I know they’re very hot demand and then we also have improved supply of Ariya and Sakura. So therefore, Japan is also poised for a very good Q4.

Sorry, very long answer, Ishiyama-san. I tried to address like four or five questions you had embedded in your two questions. Does that answer all your concerns?

Yoshitaka Ishiyama: So many questions, I’m sorry about this. Another one, quick follow-up. One-off items, the supplier costs ¥20 billion. This is a nine month, it’s ¥20 billion for nine months. Am I right? Understanding this right?

Stephen Ma : The actual number is much bigger. I’m just isolating, of that bigger number how much should have been more belonging to first half? It’s about ¥20 billion that should have belonged more in the first half, not in Q3. That’s what I’m trying to say. But we could not book those in first half because we had not yet agreed and settled with our suppliers. So does that make it easier to understand?

Yoshitaka Ishiyama: Yes, that was very clear. Thank you.

Operator: Are there any other questions? If not, the session is closed.

Julian Krell: So thank you very much for the participation today. And of course, the Nissan IR relations team remains at your disposal for any follow up questions. Thank you. Bye-bye.