FY2025 Consolidated Financial Results (Japanese Accounting Standards)
May 13, 2026
Contact person : Julian Krell, Vice President, IR Department Tel. (045) 523 - 5523 Scheduled date of the general meeting of shareholders : Jun 23, 2026 Scheduled date of payment of cash dividends : — Scheduled date of filing Yukashoken-Houkokusho : Jun 22, 2026
The additional materials of the Financial Results for FY2025 : Yes The briefing session of the Financial Results for FY2025 : Yes
(Amounts less than one million yen are rounded)
Consolidated Financial Results for FY2025 (April 1, 2025 through March 31, 2026)
<1> Consolidated operating results
(Percent indications show percentage of changes from corresponding figures for the previous period.)
Net sales
Operating income
Ordinary income
Net income attributable to
owners of parent
Millions of yen
%
Millions of yen
%
Millions of yen
%
Millions of yen
%
FY2025
12,007,888
(4.9)
58,005
(16.9)
1,081
(99.5)
(533,095)
—
FY2024
12,633,214
(0.4)
69,798
(87.7)
210,168
(70.1)
(670,898)
—
Note: Comprehensive income : (142,063) million yen for FY2025, －% : (821,602) million yen for FY2024, －%
Basic earnings per share
Diluted earnings per share
Rate of return on equity
Ordinary income as a percentage of total assets
Operating income as a percentage of net sales
yen
yen
%
%
%
FY2025
(152.58)
—
(10.9)
0.0
0.5
FY2024
(187.08)
—
(12.3)
1.1
0.6
Reference: Equity in earnings of affiliates : (2,639) million yen for FY2025, 91,299 million yen for FY2024
<2> Consolidated financial position
Total assets
Net assets
Net assets as a percentage of
total assets
Net assets per share
Millions of yen
Millions of yen
%
yen
FY2025
19,812,442
5,241,668
24.2
1,372.56
FY2024
19,024,060
5,445,348
26.1
1,419.78
Reference: Net assets excluding share subscription rights and non-controlling interests: 4,798,981 million yen as of March 31, 2026, 4,958,244 million yen as of March 31, 2025,
<3> Consolidated cash flows
Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Cash and cash equivalents
at the end of period
Millions of yen
Millions of yen
Millions of yen
Millions of yen
FY2025
794,674
(914,301)
51,903
2,264,801
FY2024
753,687
(971,227)
263,251
2,197,513
2. Dividends
Annual cash dividends per share
Total cash
dividends
Payout ratio
Cash dividends as
a percentage of net assets (Consolidated)
at 1st quarter end
at 2nd quarter end
at 3rd quarter end
at fiscal year end
Total
(Annual)
(Consolidated)
yen
yen
yen
yen
yen
Millions of yen
%
%
FY2024
—
0.00
—
0.00
0.00
—
—
—
FY2025
—
0.00
—
0.00
0.00
—
—
—
FY2026 forecast
—
0.00
—
0.00
0.00
—
3. Forecast of consolidated operating results for FY2026 (April 1, 2026 through March 31, 2027)
(Percent indications show percentage of changes from corresponding figures for the previous period.)
Net sales
Operating income
Net income attributable to owners of parent
Net income per share
FY2026
Millions of yen
%
Millions of yen
%
Millions of yen
%
yen
13,000,000
8.3
200,000
244.8
20,000
—
5.72
Note: Forecast of consolidated operating results for FY2026 1st half is not prepared.
※ Notes
<1> Significant changes in consolidation scope
In : - ( Company Name : )
:
None
Out : - (Company Name : )
<2> Changes in accounting policies, accounting estimation change and restatement
:
None
:
None
:
Applicable
:
None
<2>-1 Changes in accounting policies due to the revision of the accounting standards.
<2>-2 Changes in accounting policies except for those in <2>-1
<2>-3 Changes in accounting estimates
<2>-4 Restatement
Note: See attached page 14 "(5) Notes to consolidated financial statements - (Changes in accounting estimates) "
<3> Number of shares issued (common stock)
<3>-1 Number of shares issued at the fiscal year end (including treasury stocks)
<3>-2 Number of treasury stocks at the fiscal year end
<3>-3 The average number of shares issued during the fiscal year
(Reference) Non-Consolidated Financial ResultsResults of FY2025 (April 1, 2025 through March 31, 2026)FY2025
3,713,998,612 shares
FY2024
3,713,998,612 shares
FY2025
217,616,092 shares
FY2024
221,726,828 shares
FY2025
3,493,940,193 shares
FY2024
3,586,245,032 shares
Results of non-consolidated operations for the year ended March 31, 2026
(Percent indications show percentage of changes from corresponding figures for the previous period.)
Net sales
Operating income
Ordinary income
Net income
FY2025 FY2024
Millions of yen
%
Millions of yen
%
Millions of yen
%
Millions of yen
%
—
(85.6)
3,601,971
(11.8)
(96,803)
—
(29,762)
—
(239,266)
4,081,748
(2.5)
19,924
—
583,926
52.7
60,298
※ This Financial Results report is out of scope of Financial Audit by certified public accountants or an audit firmNet income per
share - basic
FY2025
yen
(64.72)
15.84
FY2024
【Table of content of material】※ Explanation regarding the appropriate use of forecasts of business results
The financial forecast is based on judgments and estimates that have been made on the basis of currently available information.
By nature, such financial forecast is subject to uncertainty and risk. Therefore, you are advised that the final results might be significantly different from
the aforementioned forecast due to changes in economic environments related to our business, market trends and exchange rate, etc.
For other remarks, please refer to "Other Information" on page 22.
Business Performance and Financial Position ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2
Fiscal year 2025 business performance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2
Fiscal year 2025 financial position ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3
Fiscal year 2025 cash flows ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3
Fiscal year 2026 financial forecast ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 4
Basic Rationale on Selection of Accounting Standards ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 4
Consolidated Financial Statements ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5
Consolidated balance sheet ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5
Consolidated statement of income and consolidated statement of comprehensive income ・・・・・・・・・・・・ 7
Consolidated statement of income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 7
Consolidated statement of comprehensive income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9
Consolidated statement of changes in net assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10
Consolidated statement of cash flows ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 12
Notes to consolidated financial statements ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14
(Notes to events and conditions which indicate there could be substantial doubt about going concern
14
assumption) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・
(Basis of consolidated financial statements) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14 (Changes in accounting estimates) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14 (For consolidated balance sheet) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14 (For consolidated statement of income) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 15 (Segments of an enterprise and related information) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 17 (Amounts per share) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 21 (Significant subsequent events) ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 21
Other Information ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22
- Business Performance and Financial Position
- Fiscal year 2025 business performance
In fiscal year 2025, the global industry volume increased by 3.5% from the prior fiscal year to 90.38 million units. The Nissan Group (the "Group")'s global retail sales volume decreased by 5.8% from the prior fiscal year to 3,151 thousand units. The Group’s market share decreased by 0.3 percentage points from the prior fiscal year to 3.5%.
In Japan, the total industry volume ("TIV") decreased by 0.9% to 4.53 million units. The Group’s retail sales volume decreased by 13.5% to 399 thousand units, and the Group’s market share decreased by 1.3 percentage points from the prior fiscal year to 8.8%.
In China, TIV increased by 6.2% to 26.70 million units. The Group’s retail sales volume decreased by 6.3% to 653 thousand units, and the Group’s market share decreased by 0.3 percentage points from the prior fiscal year to 2.4%.
In North America, which includes Mexico and Canada, TIV decreased by 0.1% to 19.35 million units. The Group’s retail sales volume decreased by 0.9% to 1,291 thousand units.
In the United States of America, TIV decreased by 0.5% to 15.94 million units. The Group’s retail sales volume decreased by 3.4% to 906 thousand units, and the Group’s market share decreased by 0.2 percentage points from the prior fiscal year to 5.7%.
In Europe, which includes Russia, TIV increased by 0.6% to 17.23 million units. The Group’s retail sales volume decreased by 9.7% to 317 thousand units, and the Group’s market share decreased by 0.2 percentage points from the prior fiscal year to 1.9%.
In other markets, the Group’s retail sales volume decreased by 8.1% to 491 thousand units. Retail sales volume in Asia and Oceania decreased by 15.9% to 122 thousand units, retail sales volume in Latin America decreased by 10.3% to 150 thousand units, retail sales volume in Middle East decreased by 5.5% to 159 thousand units, and retail sales volume in Africa increased by 10.8% to 60 thousand units.
Net sales in fiscal year 2025 decreased by ¥625.3 billion (4.9%) from the prior fiscal year to ¥12,007.9 billion. Operating income totaled ¥58.0 billion, decreasing by ¥11.8 billion (16.9%) from the prior fiscal year, affected by factors including
U.S. tariffs and unfavorable foreign exchange rates, largely offset by cost reductions.
Net non-operating loss totaled ¥56.9 billion, deteriorating by ¥197.3 billion from the prior fiscal year. Ordinary income totaled ¥1.1 billion, decreasing by ¥209.1 billion (99.5%) from the prior fiscal year. Net extraordinary losses totaled
¥441.5 billion, improving by ¥182.3 billion from the prior fiscal year. Loss before income taxes totaled ¥440.4 billion, deteriorating by ¥26.8 billion from the prior fiscal year. Net loss attributable to owners of parent totaled ¥533.1 billion, improving by ¥137.8 billion from the prior fiscal year.
For fiscal year 2025, free cash flows in the automobile business were negative ¥480.8 billion. For the second half of fiscal year 2025, free cash flows in the automobile business were positive ¥112.0 billion. The Group continues to maintain healthy levels of cash in the automotive business and ended the period with an automotive net cash position of ¥1,170.4 billion.
- Fiscal year 2025 financial position
■Assets
Current assets have increased by 2.9% to ¥12,675.5 billion compared to March 31, 2025. This was mainly due to an increase in securities of ¥453.4 billion.
Fixed assets have increased by 6.4% to ¥7,127.0 billion compared to March 31, 2025. This was mainly due to an increase in machinery, equipment and vehicles of ¥258.9 billion.
As a result, total assets have increased by 4.1% to ¥19,812.4 billion compared to March 31, 2025.
Liabilities
Current liabilities have increased by 0.7% to ¥8,124.3 billion compared to March 31, 2025. This was mainly due to an increase in short-term borrowings of ¥306.4 billion.
Long-term liabilities have increased by 17.0% to ¥6,446.5 billion compared to March 31, 2025. This was mainly due to an increase in bonds of ¥962.8 billion.
As a result, total liabilities have increased by 7.3% to ¥14,570.8 billion compared to March 31, 2025.
Net Assets
Net assets have decreased by 3.7% to ¥5,241.7 billion compared to ¥5,445.3 billion as of March 31, 2025. This was mainly due to a decrease in retained earnings of ¥544.8 billion.
- Fiscal year 2025 cash flows
Cash and cash equivalents at the end of the current fiscal year increased by ¥67.3 billion (3.1%) from the end of the prior fiscal year to ¥2,264.8 billion. This reflected ¥794.7 billion in net cash provided by operating activities, ¥914.3 billion in net cash used in investing activities and ¥51.9 billion in net cash provided by financing activities, as well as an increase of ¥135.0 billion in the effects of foreign exchange rate movements on cash and cash equivalents.
The reasons for the increases or decreases for each cash flow activity, when compared with the prior fiscal year, are as follows:
Operating Activities
Net cash provided by operating activities increased by ¥41.0 billion to ¥794.7 billion in the current fiscal year from
¥753.7 billion provided in the prior fiscal year. This was mainly due to an improvement in working capital, despite a decline in income.
Investing Activities
Net cash used in investing activities decreased by ¥56.9 billion to ¥914.3 billion in the current fiscal year from ¥971.2 billion used in the prior fiscal year. This was mainly due to an increase in proceeds from sales of fixed assets, despite an increase in net payment (net of purchase of leased vehicles and proceeds from sales of leased vehicles) of leased vehicles in the sales finance business.
Financing Activities
Net cash provided by financing activities decreased by ¥211.3 billion to ¥51.9 billion in the current fiscal year from
¥263.3 billion provided in the prior fiscal year. This was mainly due to an increase in repayments of borrowings and an increase in redemption of bonds, despite an increase in proceeds from issuance of bonds.
- Fiscal year 2026 financial forecast
For fiscal year 2026, Nissan anticipates global retail sales volume to increase by 4.7% to 3.3 million units.
The foreign exchange rate assumptions for fiscal year 2026 are ¥150.0 to the dollar and ¥175.0 to the euro. We forecast net revenues to increase by 8.3% to ¥13.0 trillion, operating income to increase by 244.8% to ¥200.0 billion, and net income attributable to owners of parent to be ¥20.0 billion.
Looking at the year-over-year change in consolidated operating income, we anticipate:
A negative foreign exchange movement of ¥20.0 billion;
A negative change in raw material prices of ¥85.0 billion;
A positive impact from tariffs of ¥30.0 billion;
A positive impact from improved sales performance of ¥155.0 billion;
A positive impact from lower monozukuri costs of ¥340.0 billion;
A negative impact from inflation of ¥60.0 billion;
A negative impact from one-time items of ¥148.0 billion;
A negative impact from other factors of ¥70.0 billion.
Based on our outlook, cash on hand, and the business environment for fiscal year 2026, we do not anticipate an annual dividend.
- Fiscal year 2025 business performance
- Basic Rationale on Selection of Accounting Standards
We are currently in the process of studying the adoption of International Financial Reporting Standards (IFRS) for the purpose of disclosure of financial information.
- Consolidated Financial Statements
- Consolidated balance sheet
(in millions of yen)
FY2024
FY2025
(As of March 31, 2025)
(As of March 31, 2026)
Assets
Current assets
Cash on hand and in banks
1,961,513
1,575,442
Trade notes and accounts receivable, and contract assets
577,877
644,345
Sales finance receivables
7,239,101
7,371,202
Securities
236,000
689,370
Merchandise and finished goods
1,004,235
976,935
Work in process
80,039
75,449
Raw materials and supplies
588,031
576,860
Other
783,046
918,739
Allowance for doubtful accounts
(146,375)
(152,834)
Total current assets
12,323,467
12,675,508
Fixed assets
Property, plant and equipment
Buildings and structures, net
617,430
585,762
Machinery, equipment and vehicles, net
2,731,897
2,990,764
Land
574,186
565,092
Construction in progress
211,367
211,201
Other, net
197,180
177,583
Total property, plant and equipment
4,332,060
4,530,402
Intangible fixed assets
216,554
167,768
Investments and other assets
Investment securities
1,428,641
1,453,743
Long-term loans receivable
11,191
9,836
Net defined benefit assets
165,954
254,335
Deferred tax assets
163,618
265,757
Other
385,924
451,815
Allowance for doubtful accounts
(6,458)
(6,666)
Total investments and other assets
2,148,870
2,428,820
Total fixed assets
6,697,484
7,126,990
Deferred assets
Bond issuance costs
3,109
9,944
Total deferred assets
3,109
9,944
Total assets
19,024,060
19,812,442
(in millions of yen)
FY2024
FY2025
(As of March 31, 2025)
(As of March 31, 2026)
Liabilities
Current liabilities
Trade notes and accounts payable
2,070,387
2,142,560
Short-term borrowings
876,104
1,182,520
Current portion of long-term borrowings
1,881,691
1,907,993
Commercial papers
86,743
42,513
Current portion of bonds
771,205
408,068
Lease obligations
44,400
60,157
Accrued expenses
1,092,732
1,165,641
Accrued warranty costs
117,835
113,598
Other
1,129,093
1,101,251
Total current liabilities
8,070,190
8,124,301
Long-term liabilities
Bonds
1,708,532
2,671,312
Long-term borrowings
2,661,356
2,539,845
Lease obligations
69,830
107,714
Deferred tax liabilities
230,872
277,942
Accrued warranty costs
147,920
144,090
Net defined benefit liability
164,516
150,066
Other
525,496
555,504
Total long-term liabilities
5,508,522
6,446,473
Total liabilities
13,578,712
14,570,774
Net assets
Shareholders’ equity
Common stock
605,814
605,814
Capital surplus
825,756
841,464
Retained earnings
3,415,475
2,870,651
Treasury stock
(88,284)
(86,821)
Total shareholders’ equity
4,758,761
4,231,108
Accumulated other comprehensive income
Unrealized holding gain and loss on securities
1,563
5,908
Unrealized gain and loss from hedging instruments
(2,824)
(12,457)
Adjustment for revaluation of the accounts of the consolidated subsidiaries based on general price
level accounting
(112,691)
(118,754)
Translation adjustments
314,407
644,810
Remeasurements of defined benefit plans
(972)
48,366
Total accumulated other comprehensive income
199,483
567,873
Share subscription rights
299
—
Non-controlling interests
486,805
442,687
Total net assets
5,445,348
5,241,668
Total liabilities and net assets
19,024,060
19,812,442
- Consolidated statement of income and consolidated statement of comprehensive income
Consolidated statement of income
(in millions of yen)
FY2024
FY2025
(From April 1, 2024
To March 31, 2025)
(From April 1, 2025
To March 31, 2026)
Net sales
12,633,214
12,007,888
Cost of sales
10,939,854
10,467,932
Gross profit
1,693,360
1,539,956
Selling, general and administrative expenses
Advertising expenses
347,482
315,262
Service costs
29,829
66,369
Provision for warranty costs
130,518
86,332
Other selling expenses
217,212
156,504
Salaries and wages
492,207
469,399
Retirement benefit expenses
24,392
24,157
Supplies
2,047
1,890
Depreciation and amortization
69,406
52,582
Provision for doubtful accounts
69,448
64,885
Amortization of goodwill
1,031
660
Other
239,990
243,911
Total selling, general and administrative expenses
1,623,562
1,481,951
Operating income
69,798
58,005
Non-operating income
Interest income
53,803
68,739
Dividends income
689
134
Equity in earnings of affiliates
91,299
—
Derivative gain
82,805
—
Exchange gain
—
24,623
Gain on net monetary position
45,160
28,869
Miscellaneous income
25,410
18,298
Total non-operating income
299,166
140,663
Non-operating expenses
Interest expense
77,369
113,825
Equity in losses of affiliates
—
2,639
Derivative loss
—
51,411
Exchange loss
49,040
—
Miscellaneous expenses
32,387
29,712
Total non-operating expenses
158,796
197,587
Ordinary income
210,168
1,081
(in millions of yen)
FY2024
FY2025
(From April 1, 2024
To March 31, 2025)
(From April 1, 2025
To March 31, 2026)
Extraordinary income
Gain on sales of fixed assets
21,707
127,338
Other
1,078
8,039
Total extraordinary income
22,785
135,377
Extraordinary losses
Loss on sales of fixed assets
12,690
3,793
Loss on disposal of fixed assets
21,972
21,610
Impairment loss
494,935
366,247
Special addition to retirement benefits
40,619
85,048
Other
76,355
100,140
Total extraordinary losses
646,571
576,838
Loss before income taxes
(413,618)
(440,380)
Income taxes-current
265,142
137,615
Income taxes-deferred
(18,675)
(51,329)
Total income taxes
246,467
86,286
Net loss
(660,085)
(526,666)
Net income attributable to non-controlling interests
10,813
6,429
Net loss attributable to owners of parent
(670,898)
(533,095)
Consolidated statement of comprehensive income
(in millions of yen)
FY2024
FY2025
(From April 1, 2024
To March 31, 2025)
(From April 1, 2025
To March 31, 2026)
Net loss
(660,085)
(526,666)
Other comprehensive income
Unrealized holding gain and loss on securities
(1,601)
11
Unrealized gain and loss from hedging instruments
(16,225)
(12,437)
Adjustment for revaluation of the accounts of the consolidated subsidiaries based on general price level accounting
(17,912)
(2,356)
Translation adjustments
(148,162)
287,863
Remeasurements of defined benefit plans
(28,382)
46,972
The amount related to equity method companies
50,765
64,550
Total other comprehensive income
(161,517)
384,603
Comprehensive income
(821,602)
(142,063)
(Breakdown of comprehensive income)
Comprehensive income attributable to owners of parent
(846,966)
(164,705)
Comprehensive income attributable to non-controlling interests
25,364
22,642
- Consolidated statement of changes in net assets
FY 2024 (From April 1, 2024 To March 31, 2025)
(in millions of yen)
Shareholders' equity
Accumulated other comprehensive income
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Unrealized holding gain and loss on
securities
Unrealized gain and loss from hedging
instruments
Balance at the beginning of current period
605,814
826,151
4,285,508
(111,377)
5,606,096
3,500
13,159
Changes of items during the period
Cash dividends paid
(56,104)
(56,104)
Net loss attributable to owners of parent
(670,898)
(670,898)
Purchase of treasury stock
(139,856)
(139,856)
Disposal of treasury stock
(183)
20,101
19,918
Cancellation of treasury stock
(142,848)
142,848
Changes in affiliated companies’ interests in its subsidiaries
(395)
(395)
Net changes of items other than those in shareholders’ equity
(1,937)
(15,983)
Total changes of items during the period
(395)
(870,033)
23,093
(847,335)
(1,937)
(15,983)
Balance at the end of current period
605,814
825,756
3,415,475
(88,284)
4,758,761
1,563
(2,824)
Accumulated other comprehensive income
Share subscription rights
Non-controlling interests
Total net assets
Adjustment for revaluation of the accounts of the consolidated subsidiaries based on general price level
accounting
Translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Balance at the beginning of current period
(103,135)
422,883
39,144
375,551
304
488,592
6,470,543
Changes of items during the period
Cash dividends paid
(56,104)
Net loss attributable to owners of parent
(670,898)
Purchase of treasury stock
(139,856)
Disposal of treasury stock
19,918
Cancellation of treasury stock
—
Changes in affiliated companies’ interests in its subsidiaries
(395)
Net changes of items other than those in shareholders’ equity
(9,556)
(108,476)
(40,116)
(176,068)
(5)
(1,787)
(177,860)
Total changes of items during the period
(9,556)
(108,476)
(40,116)
(176,068)
(5)
(1,787)
(1,025,195)
Balance at the end of current period
(112,691)
314,407
(972)
199,483
299
486,805
5,445,348
FY 2025 (From April 1, 2025 To March 31, 2026)
(in millions of yen)
Shareholders' equity
Accumulated other comprehensive income
Common stock
Capital surplus
Retained earnings
Treasury stock
Total shareholders' equity
Unrealized holding gain and loss on
securities
Unrealized gain and loss from hedging
instruments
Balance at the beginning of current period
605,814
825,756
3,415,475
(88,284)
4,758,761
1,563
(2,824)
Changes of items during the period
Net loss attributable to owners of parent
(533,095)
(533,095)
Purchase of treasury stock
(449)
(449)
Disposal of treasury stock
(277)
1,912
1,635
Changes in an affiliated company’s scope of consolidation
(51)
(51)
Changes in an affiliated company’s scope of equity method
(11,401)
(11,401)
Changes in affiliated companies’ interests in its subsidiaries
15,708
15,708
Net changes of items other than those in shareholders’ equity
4,345
(9,633)
Total changes of items during the period
15,708
(544,824)
1,463
(527,653)
4,345
(9,633)
Balance at the end of current period
605,814
841,464
2,870,651
(86,821)
4,231,108
5,908
(12,457)
Accumulated other comprehensive income
Share subscription rights
Non-controlling interests
Total net assets
Adjustment for revaluation of the accounts of the consolidated subsidiaries based on general price level
accounting
Translation adjustments
Remeasurements of defined benefit plans
Total accumulated other comprehensive income
Balance at the beginning of current period
(112,691)
314,407
(972)
199,483
299
486,805
5,445,348
Changes of items during the period
Net loss attributable to owners of parent
(533,095)
Purchase of treasury stock
(449)
Disposal of treasury stock
1,635
Changes in an affiliated company’s scope of consolidation
(51)
Changes in an affiliated company’s scope of equity
method
(11,401)
Changes in affiliated companies’ interests in its subsidiaries
15,708
Net changes of items other than those in shareholders’ equity
(6,063)
330,403
49,338
368,390
(299)
(44,118)
323,973
Total changes of items during the period
(6,063)
330,403
49,338
368,390
(299)
(44,118)
(203,680)
Balance at the end of current period
(118,754)
644,810
48,366
567,873
—
442,687
5,241,668
- Consolidated statement of cash flows
(in millions of yen)
FY2024
FY2025
(From April 1, 2024
To March 31, 2025)
(From April 1, 2025
To March 31, 2026)
Cash flows from operating activities
Loss before income taxes
(413,618)
(440,380)
Depreciation and amortization (for fixed assets excluding leased vehicles)
367,946
263,650
Depreciation and amortization (for long term prepaid expenses)
41,317
52,763
Depreciation and amortization (for leased vehicles)
287,748
311,872
Impairment loss
494,935
366,247
Increase (decrease) in allowance for doubtful accounts
(4,660)
(5,296)
Provision for residual value risk of leased vehicles (net changes)
44,565
19,023
Interest and dividends income
(54,492)
(68,873)
Interest expense
358,523
406,135
Equity in losses (earnings) of affiliates
(91,299)
2,639
Loss (gain) on sales of fixed assets
(9,017)
(123,545)
Loss on disposal of fixed assets
21,972
21,610
Decrease (increase) in trade notes and accounts receivable, and contract assets
42,541
(38,470)
Decrease (increase) in sales finance receivables
(16,641)
371,365
Decrease (increase) in inventories
429,099
297,872
Increase (decrease) in trade notes and accounts payable
(96,018)
5,617
Other
(136,691)
(216,385)
Subtotal
1,266,210
1,225,844
Interest and dividends received
57,057
75,567
Proceeds from dividends income from affiliates accounted for by equity method
23,651
23,764
Interest paid
(358,265)
(407,100)
Income taxes paid
(234,966)
(123,401)
Net cash provided by (used in) operating activities
753,687
794,674
Cash flows from investing activities
Net decrease (increase) in short-term investments
9,633
(11)
Purchase of fixed assets
(533,712)
(494,907)
Proceeds from sales of fixed assets
46,320
189,731
Purchase of leased vehicles
(1,378,029)
(1,138,917)
Proceeds from sales of leased vehicles
821,177
494,775
Payments of long-term loans receivable
(187)
(223)
Collection of long-term loans receivable
2,139
564
Purchase of investment securities
(19,492)
(1,605)
Proceeds from sales of investment securities
80,280
5,479
Proceeds from purchase of subsidiaries’ shares resulting in changes in the scope of consolidation
1,276
—
Proceeds from (payments for) sales of subsidiaries’ shares resulting in changes in the scope of consolidation
(162)
37,056
Net decrease (increase) in restricted cash
(9,253)
(12,303)
Other
8,783
6,060
Net cash provided by (used in) investing activities
(971,227)
(914,301)
(in millions of yen)
FY2024
FY2025
(From April 1, 2024
To March 31, 2025)
(From April 1, 2025
To March 31, 2026)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings
41,908
154,543
Proceeds from long-term borrowings
1,688,211
1,632,620
Proceeds from issuance of bonds
143,068
1,176,611
Repayments of long-term borrowings
(1,189,197)
(2,042,334)
Redemption of bonds
(166,692)
(769,326)
Proceeds from non-controlling shareholders
—
3,323
Purchase of treasury stock
(139,350)
(1)
Repayments of lease obligations
(52,094)
(58,651)
Cash dividends paid
(56,104)
—
Cash dividends paid to non-controlling interests
(6,499)
(44,882)
Net cash provided by (used in) financing activities
263,251
51,903
Effects of exchange rate changes on cash and cash equivalents
25,596
135,012
Increase (decrease) in cash and cash equivalents
71,307
67,288
Cash and cash equivalents at the beginning of the period
2,126,206
2,197,513
Cash and cash equivalents at the end of the period
2,197,513
2,264,801
- Notes to consolidated financial statements
(Notes to events and conditions which indicate there could be substantial doubt about going concern assumption)
None
(Basis of consolidated financial statements)
Number of consolidated subsidiaries and equity method applied affiliates
Consolidated subsidiaries: 226 companies (Domestic 92, Overseas 134)
Equity method applied affiliates: 36 companies (Domestic 22, Overseas 14)
Change in the scope of consolidation and equity method
Number of companies newly included in the scope of consolidation; 3 companies
Number of companies excluded from the scope of consolidation; 8 companies
Number of companies newly accounted for by the equity method; 2 companies
Number of companies ceased to be accounted for by the equity method; 1 company
The increases in the number of consolidated subsidiaries and companies accounted for by the equity method were mainly due to establishment of new companies and acquisition of shares. The decreases were mainly due to liquidation and sales of their shares.
(Changes in accounting estimates)Change in useful life of software for internal use
In the process of reviewing the business and resources, the Group re-evaluated the expected useful life of certain internally used software based on past usage patterns and expected usage. The Group concluded that, due to the low risk of technological obsolescence for this software, it will be utilized for a longer duration than previously estimated. Consequently, the Group has extended the maximum useful life for such software from five years to eight years in the current fiscal year, after consideration of the recovery plan, “Re:Nissan” announced in May 2025.
This change resulted in an increase of ¥11,068 million in operating income and a decrease of ¥11,068 million in loss before income taxes for the current fiscal year.
Accrued warranty costs
Accrued warranty costs are recognized to cover the estimated expenses for all services expected to be incurred over the entire warranty period, in accordance with warranty contract terms and based on historical experience. The Group identified a shift in the pattern of warranty service occurrences driven by changes in parts composition (e.g. electronic parts), and to align this pattern with actual warranty expenses paid, the Group revised its estimation approach to incorporate actual warranty costs from contracts still within their effective warranty periods versus incorporating the warranty costs from expired warranty contracts. Consequently, the Group has accounted for this adjustment as a change in the accounting estimate in the current fiscal year.
This change resulted in an increase of ¥36,603 million in operating income and ¥36,984 million in ordinary income, and a decrease of ¥36,984 million in loss before income taxes for the current fiscal year.
(For consolidated balance sheet)Contingent Liabilities
Lawsuits related to misstatements in Annual Securities Reports (“Yukashoken-Houkokusho”)
As a consequence of misstatements in Annual Securities Reports for each fiscal year in the past, there are some ongoing domestic and foreign lawsuits.
The consolidated financial results may be affected by the progress of legal proceedings.
(For consolidated statement of income)Impairment loss
Prior fiscal year (From April 1, 2024 To March 31, 2025)
The Group assesses fixed asset impairment losses based on various criteria, including business segments (automobiles and sales financing) and regional groupings that reflect business interdependencies. In the current fiscal year, the groupings were partially revised based on the change in the complementary relationships. For certain areas of business, we have established individual asset groupings that better reflects future profitability of those assets by separating them from other CGUs.
In response to the significant updated future plan reflecting our current severe challenges and a competitive industry, the Group conducted impairment testing for asset groups for which there were indicators of impairment at the end of current consolidated fiscal year.
As a result of that analysis, the book value of automobile segment business assets and sales finance business assets were written down to their recoverable amount and an impairment loss of ¥464,367 million and ¥2,686 million were recorded as an extraordinary loss.
For North America, the recoverable amount is measured by the value in use, which is calculated by discounting future cash flows at discount rate of 10.23%. For South America, Europe and Japan, the recoverable amount is measured by net realizable value, which is calculated based on the real estate appraisal value, etc.
Usage
Type
Location
Amount
(in millions of yen)
Business assets
Machinery, equipment and vehicles, and others
North America
237,558
Business assets
Machinery, equipment and vehicles, and
others
South America
24,642
Business assets
Machinery, equipment and vehicles, and others
Europe
138,771
Business assets
Machinery, equipment and vehicles, and
others
Japan
66,082
Total
467,053
The Group determines whether an individual asset is impaired if the asset is considered idle or if it is to be disposed of based on management decisions.
Impairment losses were recognized on the following assets.
Usage
Type
Location
Amount
(in millions of yen)
Idle assets
Machinery, equipment and vehicles, Construction in progress and others
Japan, North America, Asia and Other overseas countries (Total 27 locations)
6,958
Assets to be sold
Buildings and structures and Land
Japan (Total 24 locations)
1,765
Assets to be disposed of
Buildings and structures, Machinery, equipment and vehicles and others
Japan and Other overseas
countries (Total 11 locations)
19,159
Current fiscal year (From April 1, 2025 To March 31, 2026)
The Group assesses fixed asset impairment losses based on various criteria, including business segments (automobiles and sales financing) and regional groupings that reflect business interdependencies. For certain areas of business, we have established individual asset groupings that better reflect future profitability of those assets by classifying them from other CGUs.
The Group conducted impairment testing for asset groups for which there were indicators of impairment due to continuous operating losses, etc. at the end of current consolidated fiscal year.
As a result, the book value of automobile segment business assets was written down to their recoverable amount and an impairment loss of ¥240,122 million was recorded as an extraordinary loss. The impairment amount also includes impairment losses on leased vehicles (assets leased to others under lease agreements) arising from the decline in used vehicle market prices following the abolition of the U.S. Federal EV tax credit program.
For business assets other than leased vehicles, the recoverable amount is measured by net realizable value, which is calculated based on the real estate appraisal value, etc. The recoverable amount of leased vehicles is measured based on value in use, which is calculated by discounting future cash flows—taking into account the residual value at the end of the lease term and gains on the sale of off-lease vehicles —at a discount rate of 6.1%.
Usage
Type
Location
Amount
(in millions of yen)
Business assets
Buildings, and structures, Machinery,
equipment and vehicles, and others
North America
154,840
Business assets
Assets leased to others under lease
agreements (lessor)
North America
15,825
Business assets
Buildings, and structures, Machinery,
equipment and vehicles, and others
Europe
47,088
Business assets
Buildings, and structures, Machinery, equipment and vehicles, and others
Japan
22,369
Total
240,122
The Group determines whether an individual asset is impaired if the asset is considered idle or if it is to be disposed of based on management decisions.
Impairment losses were recognized on the following assets.
Usage
Type
Location
Amount
(in millions of yen)
Idle assets
Machinery, equipment and vehicles, Intangible fixed assets and others
Japan, North America, Asia and Other overseas countries
(Total 19 locations)
68,139
Assets to be sold
Buildings and structures, Construction in progress and others
Japan and Other overseas
countries (Total 5 locations)
2,514
Assets to be disposed of
Machinery, equipment and vehicles, Construction in progress and others
Japan, North America and Europe (Total 16 locations)
55,472
Income taxes for global minimum tax
Amount of income taxes-current pertaining
to
global
minimum tax (in millions of yen)
FY2024
FY2025
(From April 1, 2024
To March 31, 2025)
(From April 1, 2025
To March 31, 2026)
8,718
1,558
(Segments of an enterprise and related information)
【Segment information】
General information about reportable segments
The reportable segments of the Group are components for which discrete financial information is available and whose operating results are regularly reviewed by management to make decisions about resource allocation and to assess their performance.
Businesses of the Group are segmented into Automobile and Sales financing based on the features of products and services. The Automobile business includes manufacturing and sales of vehicles and parts. The Sales financing business provides sales finance services and leasing to support the sales activities of the Automobile business.
Calculation method of net sales and profits or losses by reportable segment
In principle, the accounting method for the reportable segments is the same as basis of preparation for the consolidated financial statements.
The segment profits are based on operating income. Inter-segment sales are based on the price in arms-lengths transaction.
Net sales and profits or losses by reportable segment
Prior fiscal year (From April 1, 2024 To March 31, 2025)
(in millions of yen)
Reportable segments
Elimination of
inter-segment transactions
The year ended March 31, 2025
Automobile
Sales
financing
Total
Net sales
Sales to third parties
11,437,856
1,195,358
12,633,214
—
12,633,214
Inter-segment sales or transfers
207,622
66,723
274,345
(274,345)
—
Total
11,645,478
1,262,081
12,907,559
(274,345)
12,633,214
Segment profit (loss)
(267,979)
285,647
17,668
52,130
69,798
Current fiscal year (From April 1, 2025 To March 31, 2026)
(in millions of yen)
Reportable segments
Elimination of inter-segment transactions
The year ended March 31, 2026
Automobile
Sales financing
Total
Net sales
Sales to third parties
10,760,298
1,247,590
12,007,888
—
12,007,888
Inter-segment sales or
transfers
159,808
70,412
230,220
(230,220)
—
Total
10,920,106
1,318,002
12,238,108
(230,220)
12,007,888
Segment profit (loss)
(292,890)
297,942
5,052
52,953
58,005
[Consolidated financial statements by business segment]
*Regarding the summarized consolidated statement of income and summarized consolidated statement of cash flows for the prior fiscal year, the Sales financing segment consists of Nissan Financial Services Co., Ltd. (Japan), Nissan Motor Acceptance Company LLC (U.S.A.), Nissan Financial Services Mexico (Mexico), Dongfeng Nissan Auto Finance Co., Ltd. (China), 13 other companies and the sales finance operations of Nissan Canada, Inc. (Canada).
*Regarding the summarized consolidated statement of income and summarized consolidated statement of cash flows for the current fiscal year, the Sales financing segment consists of Nissan Financial Services Co., Ltd. (Japan), Nissan Motor Acceptance Company LLC (U.S.A.), Nissan Financial Services Mexico (Mexico), Dongfeng Nissan Auto Finance Co., Ltd. (China), 11 other companies and the sales finance operations of Nissan Canada, Inc. (Canada).
* The financial data in the Automobile & Eliminations represent the differences between the consolidated figures and those for the Sales financing segment.
- Summarized consolidated statements of income by business segment
(in millions of yen)
Automobile & Eliminations
Sales financing
Consolidated total
FY2024
(From April 1, 2024
To March 31, 2025)
FY2025
(From April 1, 2025
To March 31, 2026)
FY2024
(From April 1, 2024
To March 31, 2025)
FY2025
(From April 1, 2025
To March 31, 2026)
FY2024
(From April 1, 2024
To March 31, 2025)
FY2025
(From April 1, 2025
To March 31, 2026)
Net sales
11,371,133
10,689,886
1,262,081
1,318,002
12,633,214
12,007,888
Cost of sales
10,114,795
9,583,177
825,059
884,755
10,939,854
10,467,932
Gross profit
1,256,338
1,106,709
437,022
433,247
1,693,360
1,539,956
Operating income as a percentage of net sales
(1.9%)
(2.2%)
22.6%
22.6%
0.6%
0.5%
Operating income (loss)
(215,849)
(239,937)
285,647
297,942
69,798
58,005
Financial income / expenses, net
(23,527)
(45,818)
650
866
(22,877)
(44,952)
Other non-operating income and expenses, net
161,576
(12,217)
1,671
245
163,247
(11,972)
Ordinary income (loss)
(77,800)
(297,972)
287,968
299,053
210,168
1,081
Income (loss) before income taxes
(684,135)
(743,013)
270,517
302,633
(413,618)
(440,380)
Net income (loss) attributable to owners of parent
(861,200)
(732,799)
190,302
199,704
(670,898)
(533,095)
- Summarized consolidated statement of cash flows by business segment
(in millions of yen)
Automobile & Eliminations
Sales Financing
Consolidated total
FY2024
(From April 1, 2024
To March 31, 2025)
FY2025
(From April 1, 2025
To March 31, 2026)
FY2024
(From April 1, 2024
To March 31, 2025)
FY2025
(From April 1, 2025
To March 31, 2026)
FY2024
(From April 1, 2024
To March 31, 2025)
FY2025
(From April 1, 2025
To March 31, 2026)
Cash flows from operating activities
157,456
(227,279)
596,231
1,021,953
753,687
794,674
Cash flows from investing activities
(400,272)
(253,524)
(570,955)
(660,777)
(971,227)
(914,301)
(Free Cash flow)
(242,816)
(480,803)
25,276
361,176
(217,540)
(119,627)
Cash flows from financing activities
365,016
365,766
(101,765)
(313,863)
263,251
51,903
Effects of exchange rate changes on cash and cash equivalents
23,237
127,327
2,359
7,685
25,596
135,012
Increase (decrease) in cash and cash equivalents
145,437
12,290
(74,130)
54,998
71,307
67,288
Cash and cash equivalents at the beginning of the period
2,014,343
2,159,780
111,863
37,733
2,126,206
2,197,513
Cash and cash equivalents at the end of the period
2,159,780
2,172,070
37,733
92,731
2,197,513
2,264,801
[Net sales and profits or losses by region]
Prior fiscal year (From April 1, 2024 To March 31, 2025)
(in millions of yen)
Japan
North America
Europe
Asia
Other overseas countries
Total
Eliminations
Consolidated
Net sales
(1) Sales to third
parties
2,018,910
6,805,389
1,499,393
786,135
1,523,387
12,633,214
—
12,633,214
(2) Inter-segment
sales
2,839,147
361,508
289,219
861,338
21,277
4,372,489
(4,372,489)
—
Total
4,858,057
7,166,897
1,788,612
1,647,473
1,544,664
17,005,703
(4,372,489)
12,633,214
Operating income (loss)
133,714
(38,318)
(98,770)
57,268
2,463
56,357
13,441
69,798
Notes: 1. Regions represent the location of the Company and its group companies.
- Consolidated balance sheet
Areas are segmented based on their geographical proximity and their mutual operational relationship.
Major countries and areas which belong to segments other than Japan are as follows:
(1) North America | : The United States of America, Canada and Mexico |
(2) Europe | : France, The United Kingdom, Spain and other European countries |
(3) Asia | : China, Thailand, India and other Asian countries |
(4) Other overseas countries | : Oceania, Middle East, South Africa and Central & South America excluding Mexico |
Current fiscal year (From April 1, 2025 To March 31, 2026)
(in millions of yen)
Japan | North America | Europe | Asia | Other overseas countries | Total | Eliminations | Consolidated | |
Net sales | ||||||||
(1) Sales to third parties | 1,841,474 | 6,677,296 | 1,448,450 | 508,420 | 1,532,248 | 12,007,888 | — | 12,007,888 |
(2) Inter-segment sales | 2,481,224 | 281,048 | 269,174 | 794,785 | 24,594 | 3,850,825 | (3,850,825) | — |
Total | 4,322,698 | 6,958,344 | 1,717,624 | 1,303,205 | 1,556,842 | 15,858,713 | (3,850,825) | 12,007,888 |
Operating income (loss) | 5,367 | 68,661 | (54,138) | 31,297 | (5,243) | 45,944 | 12,061 | 58,005 |
Notes: 1. Regions represent the location of the Company and its group companies.
Areas are segmented based on their geographical proximity and their mutual operational relationship.
Major countries and areas which belong to segments other than Japan are as follows:
(1) North America | : The United States of America, Canada and Mexico |
(2) Europe | : France, The United Kingdom, Spain and other European countries |
(3) Asia | : China, Thailand, India and other Asian countries |
(4) Other overseas countries | : Oceania, Middle East, South Africa and Central & South America excluding Mexico |
[Information about net sales by geographical area]
Prior fiscal year (From April 1, 2024 To March 31, 2025)
(in millions of yen)
Japan | North America | Europe | Asia | Other overseas countries | Total | |
U.S.A. | ||||||
1,963,534 | 6,603,571 | 4,989,337 | 1,609,054 | 722,116 | 1,734,939 | 12,633,214 |
Notes: 1. Regions represent customers’ location.
Areas are segmented based on their geographical proximity and their mutual operational relationship.
Major countries and areas which belong to segments other than Japan are as follows:
(1) North America | : The United States of America, Canada and Mexico |
(2) Europe | : France, The United Kingdom, Spain and other European countries |
(3) Asia | : China, Thailand, India and other Asian countries |
(4) Other overseas countries | : Oceania, Middle East, South Africa and Central & South America excluding Mexico, etc. |
Current fiscal year (From April 1, 2025 To March 31, 2026)
(in millions of yen)
Japan | North America | Europe | Asia | Other overseas countries | Total | |
U.S.A. | ||||||
1,741,604 | 6,501,812 | 4,900,959 | 1,506,498 | 556,324 | 1,701,650 | 12,007,888 |
Notes: 1. Regions represent customers’ location.
Areas are segmented based on their geographical proximity and their mutual operational relationship.
Major countries and areas which belong to segments other than Japan are as follows:
(1) North America | : The United States of America, Canada and Mexico |
(2) Europe | : France, The United Kingdom, Spain and other European countries |
(3) Asia | : China, Thailand, India and other Asian countries |
(4) Other overseas countries | : Oceania, Middle East, South Africa and Central & South America excluding Mexico, etc. |
(Amounts per share)
(Yen)
FY2024 | FY2025 | |
(From April 1, 2024 To March 31, 2025) | (From April 1, 2025 To March 31, 2026) | |
Net assets per share | 1,419.78 | 1,372.56 |
Basic net loss per share | (187.08) | (152.58) |
Diluted earnings per share | — | — |
Notes: The basis for calculation of the basic net loss per share and the diluted earnings per share is as follows.
FY2024 (From April 1, 2024 To March 31, 2025) | FY2025 (From April 1, 2025 To March 31, 2026) | |
Basic net loss per share: | (670,898) | (533,095) |
Net loss attributable to owners of parent (Millions of yen) | ||
Net loss attributable to owners of parent relating to common stock (Millions of yen) | (670,898) | (533,095) |
Average number of shares of common stock during the fiscal year (Thousands of shares) | 3,586,245 | 3,493,940 |
Diluted earnings per share: | — | — |
Increase in shares of common stock (Thousands of shares) | ||
(Exercise of share subscription rights (Thousands of shares)) | — | — |
(Significant subsequent events)
Not applicable.
- Other Information
・Matters related to misconduct led by the Company’s former chairman and others
The former Representative Directors of the Company were indicted on suspicion of violating the Financial Instruments and Exchange Act (FIEA) (charged with submitting false Securities Reports) and a former Representative Director and Chairman was additionally indicted on suspicion of violating the Companies Act (charged with aggravated breach of trust). In conjunction with these indictments, the Company itself was indicted on suspicion of violating the FIEA. The Company took this situation very seriously and formed a Special Committee for Improving Governance (SCIG) consisting of several independent third parties and independent Outside Directors of the Company. On March 27, 2019, Nissan’s board of directors received a report from the SCIG that summarizes the committee’s proposals for governance improvements and recommends a framework for the best governance as a foundation for Nissan business operations in the future. The Company has made the transition to a three statutory committee format.
On September 9, 2019, the board of directors of the Company received a report from the Audit Committee on the internal investigation into misconduct led by the Company’s former chairman and others. As stated in the timely disclosure released on September 9, 2019 “Nissan board receives report on misconduct led by former chairman and others”, the report confirmed specific instances of misconduct. Among these instances, Ghosn’s personal use of the company’s assets and improper payments of financial “incentives” to Nissan distributors instructed by Ghosn are as follows. Since September 9, 2019, there have been no changes made to the following contents at the time of submission of this report. In the future, if significant progress occurs in the following contents, we will disclose in accordance with relevant laws and regulations.
Ghosn’s personal use of the company’s assets
The report confirms that Ghosn used the company’s assets for personal benefit, including:
purchase of residences for exclusive personal use in Beirut and Rio de Janeiro using roughly 27 million U.S. dollars in investment funds from Zi-A Capital, a Nissan subsidiary established under the guise of investing in promising technology start-ups, and further misuse of other company funds to purchase or rent additional residences for personal use;
payment of sums totaling more than 750,000 U.S. dollars to Ghosn’s sister on the basis of a fictitious consulting contract, starting in 2003 and extending for over 10 years with no evidence of any services having been rendered;
personal use of the corporate jets by Ghosn and members of his family;
improper use of expenses toward family vacations and gifts of a personal nature;
instruction of donations totaling more than 2 million U.S. dollars of company funds to universities in Ghosn’s ancestral home country of Lebanon with no legitimate business purpose;
transfer to Nissan in 2008 of foreign exchange swap contracts bearing unrealized losses of roughly 1.85 billion yen, based on a deceptive explanation to the company’s board regarding the nature of the transaction (in 2009, the swap contracts were secretly transferred back to a company related to Ghosn after being flagged as improper by Japan’s financial authorities);
improper payments totaling 7.8 million Euros to Ghosn from Nissan-Mitsubishi B.V. (“NMBV”), which is a joint venture established by Nissan and Mitsubishi Motors Corporation, paid from April 2018 onward under the pretext of a salary and an employment contract with NMBV, despite the fact that no contract had been approved by the NMBV’s board of directors.
Improper payments of financial “incentives” to Nissan distributors instructed by Ghosn
Ghosn instructed a Nissan subsidiary to make payments totaling 14.7 million U.S. dollars to a distributor managed by an acquaintance outside Japan who had previously offered him personal financial support (a fact Ghosn withheld from Nissan’s board of directors and the relevant departments within the company). Payments were made under the pretext of covering expenses for special business projects and were approved through Nissan’s CEO Reserve, an emergency budget over which only Ghosn and a selected few direct subordinates had approval authority.
Ghosn also instructed a Nissan subsidiary to make payments totaling 32 million U.S. dollars to a distributor outside Japan, an employee of which transferred tens of millions of dollars to Ghosn and a company related to Ghosn (a fact Ghosn withheld from Nissan’s board of directors and the relevant departments within the company). Payments were made under the pretext of granting financial incentives to the distributor in question and were approved through the CEO Reserve.
The Company has received a written notice of commencement of trial procedures dated December 13, 2019, from the Commissioner of the FSA. In response to this written notice, on December 23, 2019, the Company has submitted a written answer not disputing the alleged facts and the amount of the administrative monetary penalty. After that, the Company has received the administrative monetary penalty payment order, dated February 27, 2020, of 2,424,895,000 yen from the Commissioner of the FSA.
On March 3, 2022, the Company received from the Tokyo District Court a guilty judgment regarding the violation of the FIEA (submission of annual securities reports containing false statements) and was ordered a penalty of 200,000,000 yen. The Company treats the judgment with utmost seriousness, and after careful consideration of the principal penalty and the findings in the judgment, the Company has decided not to appeal. Since the Company and the prosecutors did not appeal against the guilty judgment on the Company within the period determined by the Criminal Procedure Act, the judgement has been finalized.
On April 26, 2022, pursuant to the provisions of Article 185-8-6 of the FIEA, the FSA modified the penalty by deducting 200,000,000 yen, which is equal to the criminal penalty in the judgment, thereby making the total amount of the administrative penalty 2,224,895,000 yen. This administrative monetary penalty has been paid in full.
Also, in an unfair dismissal lawsuit filed in the Amsterdam District Court by Ghosn against NMBV and a subsidiary of Nissan, NMBV brought a counterclaim against Ghosn for repayment of the sums Ghosn appropriated unlawfully from NMBV. While the Amsterdam District Court dismissed Ghosn’s claims and ordered Ghosn to return roughly 5 million Euros in its decision rendered on May 20, 2021, Ghosn submitted the statement of appeal to the Amsterdam Court of Appeal on August 20, 2021. As a result of a cross-appeal and defense subsequently submitted by NMBV, the Amsterdam Court of Appeal rendered a decision on August 23, 2022, dismissing the vast majority of Ghosn’s claims and ordering Ghosn to return roughly 4.2 million Euros. The decision has become final as a result of the expiration of the deadline for an appeal.
Some of the residences purchased for personal use as a result of misuse of company funds by Ghosn has been sold.
The Company has filed a provisional disposition order in the British Virgin Islands against Ghosn and related parties for a luxury yacht and has filed a lawsuit seeking damages, etc. based on the order. Also in Japan, the Company has filed lawsuits against Carlos Ghosn on February 12, 2020, and Greg Kelly, the former Representative Director of the Company, on January 19, 2022, seeking recovery of damages. Going forward, the Company will continue to take necessary measures based on the findings of the Company’s internal investigation, including legal measures to recover damages, in order to account for the responsibility of the former chairman and others.
In December 2019, new management has been established, whose members have been selected by the Nomination Committee. As demonstrated by the establishment of new management, strengthening of the supervisory function of internal audit, and so on, the Company is working on various countermeasures to prevent recurrence.
The Company continues its efforts to improve its governance, including ongoing implementation of the improvement measures stated in the Improvement Measures Status Report submitted to Tokyo Stock Exchange on January 16, 2020, as well as reviewing necessary improvements from time to time going forward. The Company also continues to reform its corporate culture, renew corporate ethics, disclose corporate information appropriately and enhance compliance-focused management.
・Matters related to a recommendation from the Japan Fair Trade Commission
On March 7, 2024, the Company received a recommendation from the Japan Fair Trade Commission based on the “Act against Delay in Payment of Subcontract Proceeds, etc. to Subcontractors’ (“Subcontract Act”), which was revised to the “Act Against Delay in Payment of Fees, etc. to Small and Medium-sized Entrusted Business Operators in Manufacturing and Other Specified Fields,” effective January 2026.
The recommendation is regarding past transactions with suppliers to which the Subcontract Act applies. A portion of the rebates received by the Company from 36 suppliers subject to the Subcontract Act were determined by the Commission as not in accordance with the provisions of Article 4, Paragraph 1, Item 3 of the Subcontract Act. This totals approximately ¥3 billion from January 2021 through April 2023. The Company has refunded an equivalent amount of rebates to suppliers. In addition, the Company has already discontinued rebates in transactions with subject suppliers.
The Company takes such recommendation from the Commission very seriously. Work between companies and their suppliers can only develop for both parties if it is based on a relationship of strong trust. To properly carry out transactions with suppliers going forward, the Company will strengthen its compliance system by reinforcing the periodical inspections system of compliance with the Subcontract Act, providing thorough and periodic training to executives and employees involved in subcontracting transactions, and taking other measures to prevent recurrence. The Company submitted the corrective action report to the Japan Fair Trade Committee on March 5, 2025.
As part of these efforts to strengthen our relationships with partners, create value for both and ensure compliance, a hotline is created outside of the Company that allows our partners to report any potential compliance matters anonymously. Secondly, we created the partnership transformation office, with a direct reporting line to CEO, consisting of members from Monozukuri and other relevant functions. This team has been actively visiting our partners to understand their challenges, receive their feedback, and share those with the rest of the organization in a timely manner so that the Company can take any necessary actions quickly. These two channels of communication in addition to the current supplier contacts managed by each function, aim at promoting better understanding of our partners’ situation and accordingly at ensuring our compliance.
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Nissan Motor Co. Ltd. published this content on May 13, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on May 13, 2026 at 08:21 UTC.
