COMPANY RESEARCH AND ANALYSIS REPORT

Nissan Tokyo Sales Holdings Co., Ltd.
8291
Tokyo Stock Exchange First Section

15-Jan.-2021
FISCO Ltd. Analyst

Kimiteru Miyata

FISCO Ltd.
https://www.fisco.co.jp

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/■ Index■Summary---------------------------------------------------------------------------------------------------------------------------------------------------------------------------- 01
1. The largest auto-dealership in Tokyo selling Nissan and Renault brand vehicles. ........................................

01

2. Strengths include consolidation and best practices against the backdrop of one-stop services,and “Nissan’s technologies”.................. ......................................................................................................

01

3. Developing a growth strategy “to continue to be the leading car dealership group in Tokyo”. .....................

01

4. In the 1H FY3/21 results, profits declined due to the coronavirus, but results for the full fiscal year
will recover, supported by new vehicle launches ~ toward a medium-term growth recovery.......................

02■Company outline--------------------------------------------------------------------------------------------------------------------------------------------------------- 03
1. Company outline and history................. ......................................................................................................

03

2. Overview of the organization. . ......................................................................................................................

04■Business description---------------------------------------------------------------------------------------------------------------------------------------------- 06
1. Business description. . ..................................................................................................................................

06

2. The Company’s strengths............................................................................................................................

10

3. “Nissan’s technologies” are also one of the Company’s strengths...............................................................

11

4. Nissan Motor’s strategy ........................ ......................................................................................................

12■Growth strategy----------------------------------------------------------------------------------------------------------------------------------------------------------- 13
1. The corporate philosophy and vision..... ......................................................................................................

13

2. Medium-term management plan............ ......................................................................................................

13■Business trends----------------------------------------------------------------------------------------------------------------------------------------------------------- 15
1. Turning point................................................................................................................................................

15

2. 1H FY3/21 results........................................................................................................................................

16

3. FY3/21 results outlook and medium-term growth image. ............................................................................

19■Shareholder return policy---------------------------------------------------------------------------------------------------------------------------------- 20
1. Dividend policy...................................... ......................................................................................................

20

2. Shareholder benefits program. . .............. ......................................................................................................

21■Information security------------------------------------------------------------------------------------------------------------------------------------------------ 22

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
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Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/█ Summary
Results are recovering supported by new vehicle launches and its
strengths, which include best practices
1. The largest auto-dealership in Tokyo selling Nissan and Renault brand vehicles
Nissan Tokyo Sales Holdings Co., Ltd. <8291> (hereafter, also “the Company”) is a holding company under whose
umbrella includes three vehicle-sales companies affiliated with Nissan Motor Corporation <7201>. It conducts
businesses including sales of new and used Nissan and Renault brand vehicles, trade-ins and sales of used
vehicles, and vehicle maintenance. Its sales areas cover close to 90% of the population of Metropolitan Tokyo and
it is the largest auto-dealership in Tokyo. It is also developing original businesses that do not rely on the Nissanbrand, including sales of used vehicles and maintenance by Gtnet Co., Ltd., and mandatory vehicle inspections by
Shakenkan Co., Ltd. In addition, listed subsidiary TOKYO NISSAN COMPUTER SYSTEM Co., Ltd. <3316> conducts
an information systems-related business, centered on a solutions-provider business. In the percentages of total
sales by business segment (FY3/20), the vehicle-related business provided 94% (new vehicles 46%, used vehicles
21%, others 27%), the information systems-related business 5%, and other businesses 0%.
2. Strengths include consolidation and best practices against the backdrop of one-stop services, and“Nissan’s technologies”
The Company’s strengths, which are characterized by one-stop services for car longevity, include “consolidation”
and “best practices” to smoothly turn the cycle of one-stop services. Consolidating three sales companies by having
them join the Group eliminated discount competition between dealerships selling the same brands, and it is also
generating scale merits and cost merits. Moreover, sharing best practices and developing them horizontally acrossthe Group’s companies is improving the sales and the sales promotion hit ratios, and also increasing the sales unit
price. This is why the dealerships can achieve a relatively high operating profit margin even while being located inTokyo, which is an area of high costs. Also, “Nissan’s technologies,” which is the traditional slogan of Nissan Motor,
is another of the Company’s strengths. In the last few years, Nissan Motor’s results have slumped, so the Company
has also struggled. But Nissan is progressing technological innovations, including being a pioneer in EV (electricvehicles), and it plans to continuously launch cutting-edge new vehicles supported by these technologies.
3. Developing a growth strategy “to continue to be the leading car dealership group in Tokyo”
The Company’s corporate philosophy is to “continue to be the leading car dealership group in Tokyo in the Japanesemarket.” But currently, concerns are accumulating about the decline in demand, such as due to the declining
birthrate and aging population occurring as technologies are evolving dramatically, and it is said that the automotive
industry has entered “a period of great reforms that occurs once every 100 years.” To respond to this, in addition
to continuing to bolster its strengths, of best practices, synergies, and original businesses, the Company plans togrow earnings in the medium-term from the continuous launches of advanced new vehicles by Nissan Motor and by
conducting M&A for businesses peripheral to vehicles. To achieve this, its policy is to foster an organizational culturethat prioritizes diversity in which employees can demonstrate their individuality, and by having employees coordinate
and collaborate so they can leverage their capabilities to the greatest possible extent. Furthermore, it appears tobe progressing investment in dealerships equipped with the latest equipment toward improving convenience for
aspects like location and dealership size, and to increase EV sales in the future.

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
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Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Summary

4. In the 1H FY3/21 results, profits declined due to the coronavirus, but results for the full fiscal year will
recover, supported by new vehicle launches ~ toward a medium-term growth recovery
In the 1H FY3/21 results, net sales were ¥62,946mn (down 17.5%YoY) and operating profit was ¥251mn (down
89.3%). Profit decreased due to a slump in sales of new vehicles owing to the impact of the novel coronavirus
pandemic, but they gradually recovered toward the 2Q and the 1Q loss was eliminated. For the FY3/21 results
outlook, the Company is forecasting net sales of ¥130,000mn (down 15.1% YoY) and operating profit of ¥1,800mn(down 58.6%), while it is targeting a recovery in the number of new vehicles sales, supported by the new vehicles
to be launched in FY3/21. The Company did not incorporate the impact of the novel coronavirus pandemic in its
medium-term management plan targets, so it may be necessary to revise these targets in the future. However,when considering factors such as the Company’s various strengths and the new vehicle launches, it is not thought
necessary to change the growth strategy itself and the outlook is that it will return to a growth trend sooner rather
than later.
Key Points
As the largest auto-dealership in Tokyo, its features include original businesses and an information systems
subsidiary• Has a three-sales-companies structure that leverages scale merits, and its strengths include best practices withmajor synergies• In the 1H FY3/21 results, profits declined due to the coronavirus, but they are currently recovering toward a
growth recovery in the medium term, supported by new vehicle launches•

Results trends
Net sales (left)

(¥mn)

(¥mn)

Operating profit (right)

180,000
150,000

6,000
145,807

149,525

152,023

153,147

130,000

5,029

120,000

155,801

4,616

4,721

4,219

5,000
4,000

4,350

90,0003,000

60,000

2,000
1,800

30,00001,000
0FY3/16

FY3/17

FY3/18

FY3/19FY3/20FY3/21E

Source: Prepared by FISCO from the Company’s financial results

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
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Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/█ Company outline
The largest auto-dealership in Tokyo
1. Company outline and history
The Company is a holding company under whose umbrella include Nissan Motor-affiliated auto-dealerships (vehicle
sales companies). It conducts a business of selling Nissan and Renault brand vehicles based in Tokyo, which isthe center of Japan, and boasts the largest dealership among Tokyo’s auto dealerships even among nationwide
Nissan-affiliated dealerships. It mainly sells the vehicles of Nissan Motor and its group companies and purchased
parts. It also conducts other businesses, including trade-ins and sales of used vehicles on the Internet, vehicle bodymaintenance, and mandatory vehicle inspections. In addition, the listed subsidiary TOKYO NISSAN COMPUTERSYSTEM conducts an information systems-related business, mainly a solutions provider business.
The Company was founded in Tokyo City in 1942 as Tokyo Prefecture Automobile Supply Co., Ltd., based on the
Ministry of Commerce and Industry’s Guidelines to Establish an Automobile and Automobile Parts Supply Structure.
After the war in 1946, it changed its company name to Tokyo Nissan Auto Sales Co., Ltd., and subsequently its
business scope gradually expanded alongside motorization, and in 1961, it was listed on the Tokyo Stock Exchange(TSE) 1st Section. In 1989, it established TOKYO NISSAN COMPUTER SYSTEM to focus on a systems business;in 2002, it established Shakenkan to strengthen mandatory vehicle inspections; and then in 2004, TOKYO NISSANCOMPUTER SYSTEM was listed on the JASDAQ market. Also, in the same year it transitioned to a holding company
structure through a company split and changed the company name to East Japan Car Life Group Co., Ltd. In 2008,
it conducted a capital increase through a third-party allocation for NISSAN NETWORK HOLDINGS COMPANY
LIMITED, which is a subsidiary of Nissan Motor, and it became an equity-method affiliate of Nissan Motor. In 2011,
it made the three Tokyo-based companies--Nissan Auto Sales Co, Ltd., Nissan Prince Tokyo Sales Co., Ltd., andNissan Prince West Tokyo Sales Co., Ltd.---into Group companies, thereby significantly expanding its Nissan vehicles
dealership business, including undertaking practically all sales of Nissan vehicles in Tokyo. Alongside the transition
to the new holding company structure, it changed is company name to Nissan Tokyo Sales Holdings Co., Ltd.
Looking back, a major turning point was when the Company added three companies to the Group in 2011. Many
auto-dealerships develop a similar lineup from within the brand strategies of the manufacturers to which they
are affiliated, and they compete not only with the networks of other manufacturers, but also with the network ofdealerships of the same manufacturer. However, the number of new vehicles sales has stopped growing due tofactors such as the declining birthrate and aging population, the declining population, and the percentage of people
who own a vehicle, and we have entered an era in which the number of vehicles nationwide is trending unchanged
YoY at around 5 million. So for dealerships to grow as companies, they must improve operating efficiency throughscale merits and consolidation, and also develop an independent strategy to promote growth. Within the industry,
the Company responded very quickly to these environmental changes and progressed down a path of becoming agroup. Recently, a movement has strengthened to integrate dealerships for each manufacturer and in each area, but
the Company was a pioneer in this and it is considered to be the source of its strengths, which are described below.

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Company outline

History
Date

Description

November 1942

Established as Tokyo Prefecture Automobile Supply Co., Ltd., in Kyobashi Ward, Tokyo City

October 1943

Changed company name to Metropolitan Tokyo Automobile Maintenance Supply Co., Ltd.

February 1946

Changed company name to Tokyo Auto Sales Co., Ltd.

December 1946

Changed company name to Tokyo Nissan Auto Sales Co., Ltd.

September 1955

Relocated the Head Office to Tameike, Minato Ward

October 1961

Listed on the TSE 1st Section

January 1971

Relocated Head Office to Roppongi, Minato Ward

March 1977

Made Tokyo Nissan Motor Co., Ltd., a base and accepted some personnel

April 1982

Established Tohnichi Services Co., Ltd.

July 1985

Acquired part of the sales of New Tokyo Nissan Auto Sales Co., Ltd.

March 1989

Established TOKYO NISSAN COMPUTER SYSTEM CO., LTD.

June 1999

Established Showajima Service Center Co., Ltd.

July 2000

Relocated the Head Office to Nishi Gotanda, Shinagawa Ward

October 2002

Established Shakenkan Co., Ltd.

August 2003

Tohnichi Services conducted an absorption merger of Showajima Service Center and changed the company name to Ace Auto
Services Co., Ltd.

March 2004

TOKYO NISSAN COMPUTER SYSTEM was listed on the JASDAQ market

April 2004
February 2008

Transitioned to a holding company structure through a company split and changed the company name to East Japan Car LifeGroup Co., Ltd.
Conducted a capital increase through a third-party allocation of shares for NISSAN NETWORK HOLDINGS COMPANY LIMITED

April 2011

Made subsidiaries of Nissan Prince Tokyo Sales Co., Ltd., and Nissan Prince West Tokyo Sales Co., Ltd.

April 2011

Transitioned to a new holding company structure for the greatly expanded Nissan dealership business and changed the company
name to Nissan Tokyo Sales Holdings Co., Ltd.

April 2012

Changed the company name of Ace Auto Services to NT AUTO SERVICE INC.

July 2019

Made a subsidiary of Gtnet, Inc.

Source: Prepared by FISCO from the Company’s securities report, etc.

There are 12 subsidiaries under the holding company, including 3
sales companies and a listed information systems company
2. Overview of the organization
The Company supervises 12 subsidiaries (including 3 non-consolidated subsidiaries), and 2 affiliates. Among thesubsidiaries, 3 sell new vehicles; Tokyo Nissan Auto Sales, Nissan Prince Tokyo Sales (including the virtual company
Renault NT Sales), and Nissan Prince West Tokyo Sales. Its base is all the areas of Metropolitan Tokyo excluding
Tokyo’s 8 central wards. But as explained in the History section, through having companies join the Group, theCompany has come to undertake basically all sales of Nissan brand vehicles in Tokyo. Incidentally, the 8 central
wards, which are Chiyoda Ward, Chuo Ward, Minato Ward, Shinjuku Ward, Bunkyo Ward, Taito Ward, Shibuya Ward,and Toshima Ward, correspond to Tokyo’s city center, and it is the area for the business being developed by a Nissan
Motor consolidated subsidiary, mainly for corporate demand (it can be said to be Nissan Motor’s direct sales area).
However, while being the city center, the population of these 8 wards is about 1.8 million people, which is no greaterthan slightly more than 10% of the population of all the areas in Metropolitan Tokyo, of 14 million people. In otherwords, the areas that constitute the Company’s base cover nearly 90% of Tokyo’s population.

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Company outline

The sales companies’ network of dealerships

Tokyo Nissan
Prince Tokyo
Prince West Tokyo
Renault NT Sales
Source: The Company’s website

The three companies selling new vehicles also handle used vehicles, reselling vehicles that are traded-in at thetime of a new vehicle sale by selling them at used vehicle auctions. The subsidiary Gtnet does not only handle
Nissan Motor vehicles and independently conducts used vehicle trade-ins and sales via actual dealerships and theInternet. For vehicle maintenance and vehicle inspections as well, other than the new vehicle sales companies,
NT AUTO SERVICE INC., Gtnet, and Shakenkan also do not only deal with Nissan Motor vehicles, and they eachindependently conduct vehicle body maintenance and mandatory vehicle inspections, which enables them to acquire
a wide range of users. TOKYO NISSAN COMPUTER SYSTEM is a subsidiary listed on JASDAQ, and it conductsa managed services* business, which includes sales of computer hardware and software, and data centers. The
Company holds 54.0% of TOKYO NISSAN COMPUTER SYSTEM’s shares, but it has a long history as a trading
company and transactions with the Company’s Group constitute no more than 6.2% of its total transactions, andthe majority of its sales are external sales (FY3/20). Other than the above, the Company rents real estate and leases
some of it to its affiliates.
*	Managed services: these are outsourcing services to provide support to customer companies for aspects like consolidatingcore work and improving work efficiency and productivity, not only by administering and managing customer companies’
information assets, but also by utilizing IT to continuously provide new value.

Results of the main subsidiaries in FY3/20(¥mn)
Tokyo Nissan
Auto Sales

Nissan Prince
Tokyo Sales

Nissan PrinceWest Tokyo Sales

Tokyo Nissan
Computer System

Net sales

43,316

51,19539,6588,790

Ordinary profit

1,054

1,263

895

572

No. of dealerships (new vehicles) (dealerships)

34

44

35

-

No. of dealerships (used vehicles) (dealerships)

3

11

7

-

Area responsible for

All areas inMetropolitan Tokyo

Within the 23 wards

Outside the 23 wards

Source: Prepared by FISCO from the Company’s securities report, etc.

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
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Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/█ Business description
The main business is sales of Nissan vehicles by the three sales
companies
1. Business description
The Company’s business is divided into three business segments; the vehicle-related business, the information
systems-related business, and other businesses. The vehicle-related business is further subdivided into new vehicles
sales, used vehicles sales, and others, such as maintenance and vehicle inspections. The percentages of total sales
provided by each business in FY3/20 show the vehicle-related business provided 94% (new vehicles 46%, used
vehicles 21%, others 27%), the information systems-related business 5%, and other businesses 0%. The relationshipwith Nissan Motor is mainly that the three sales companies purchase new vehicles and parts from Nissan Motor andthen sell them to general consumers and others. However, the Company and the three sales companies also play therole of connecting the manufacturer to the consumer, such as described below for conducting PR for cutting-edge
technologies like EV (Electric Vehicle) and ProPILOT (a driver-assistance technology), holding test drive events, andsupporting installations of rapid chargers.

S AL E S C O M P O S I T IO N I N F Y 3 / 2 0
New vehicles
Used vehicles
Others
Vehicle-related business46%
Others0%
Information
systems-related 5%business

Vehicle-related business
94%
21%

27%

Source: Prepared by FISCO from the Company’s securities report, etc.

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Business description(1) The vehicle-related business
The three sales companies–Tokyo Nissan Auto Sales, Nissan Prince Tokyo Sales, and Nissan Prince West Tokyo
Sales–sell new Nissan vehicles, while their businesses also include trade-ins and sales of used vehicles, maintenance and vehicle inspections. Each company handles all of Nissan’s model. The sales areas of Nissan Prince
Tokyo Sales and Nissan Prince West Tokyo Sales are divided between inside and outside of Tokyo’s 23 wards, andTokyo Nissan Auto Sales’ areas are all the areas of Metropolitan Tokyo (excluding the 8 central wards). Conducting
sales through three sales companies but as one group makes it possible to improve business efficiency throughavoiding unnecessary competition, while still having a mutual friendly rivalry between the dealerships, and bycomplementing each other through sharing best practices. They can also leverage scale merits by utilizing thecentralized plant of maintenance subsidiary NT AUTO SERVICE and by jointly using the services of logistics
subsidiary NTR Transporter Co., Ltd. In this way, the Company has becoming able to leverage synergies to thegreatest possible extent through having the three sales companies join the Group.
The sales of the three sales companies have a good balance between new vehicle, used vehicle, and other sales,
while sales of new vehicles improve the turnover of used vehicles sales and they have formed a stable value chain
from accumulating sales from recurring business such as maintenance. In terms of contributions to earnings,
maintenance forms a stable earnings base, while supply of used vehicles is largely dependent on new vehicles
for purchases. Therefore the new vehicles business plays the role of driving the earnings of the Group as a whole.
However, in the last few years, the Company’s market share has been weakening. The reason is that comparedto the brands of other companies, Nissan Motor has launched only a small number of new vehicles and has
experienced a series of problems. These include that the manufacturing, shipping, and registration of vehicles
was stopped due to deficiencies occurring in the completion inspection process and that former chairman Carlos
Ghosn was arrested, and it appears that the impact of these problems has also extended to the reputations of
Nissan dealerships nationwide. However, on entering FY3/21, Nissan Motor is working hard on a recovery, which is
described below. As for sales of Renault vehicles, the Company has developed five specialist Renault dealerships
which are directly operated by Nissan Prince Tokyo Sales, and the Group holds a 12% share of nationwide salesof Renault vehicles (2019) and ranks No.1 for the number of vehicles sold.
The Tokyo Nissan Hino dealership

Source: The Company’s website

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Business description

Trend in the growth rate of new vehicle sales（%）

Nationwide

Within Metropolitan Tokyo

The Company

110

100

90

80

70

60
FY3/17

FY3/18

FY3/19FY3/201Q FY3/21

2Q FY3/21

Source: Prepared by FISCO from the Company’s financial results

Used vehicles sales are handled by the three sales companies and Gtnet, which was made a subsidiary in 2019.
The handling of used vehicles by the three sales companies features sales promotion of new vehicles, while Gtnet
conducts a used vehicles business for trade-ins and sales of used sports cars. As it mainly deals with sports cars,
it has in place a transaction structure to give customers’ peace of mind, including setting its own strict quality
standards. It has 15 dealerships nationwide, from Hokkaido to Kyushu, and also 8 vehicle inspection centers.
On the other hand, it also manages a portal site that focuses on sports cars, and various services are provided
on this website, from trade-in assessments, used vehicle searches, and vehicle inspection estimates, through tosales of parts. For the vehicle models, it does not only handle Nissan vehicles and handles various other models,
including those of Toyota Motor Corporation <7203> and Honda Motor Co., Ltd.<7267>
Gtnet’s homepage

Gtnet Osaka

Source: The Company’s website

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Business description

Maintenance is one of the pillars of recurring businesses for the three sales companies, but NT AUTO SERVICE,
which is a large-scale, comprehensive vehicle maintenance company, plays the role of being the concentrated
center for services, including vehicle body panel work and painting, mandatory vehicle inspections, and maintenance of purchased vehicles through services with assured levels of quality and the latest equipment. It has
five service centers in Tokyo and one in Saitama, equipped with industry-leading technologies that can deal withthe aluminum bodies of luxury imported vehicles, and they have a track record of conducting mandatory vehicle
inspection for 43,350 vehicles (FY3/20), and panel work and painting work for a total of 21,985 vehicles (same).
Vehicle inspection work is also carried out by Shakenkan and Gtnet. Shakenkan has a network of 11 specialist
vehicle inspection workshops in Tokyo, Kanagawa, and Saitama. Its selling point is that all of its workshops aredesignated plants with the latest equipment, and that employees with national certification conduct inspectionsof the vehicles brought in by customers in a short timeframe.
		Shakenkan
The Showajima Service Center
The Itabashi workshop

Source: The Company’s website

Other than the above vehicle-related business, Ace-Biz-Serv Inc., conducts an insurance agency busines, handlinggeneral insurance and life insurance products, mainly of Sompo Japan Insurance Inc., and Tokio Marine &Nichido Fire Insurance Co., Ltd, and Aflac cancer insurance. NTR Transporter transports the Group’s vehicles
and conducts registration agency work. Also, Nissan PS Field Craft Co., Ltd., is a dealership specializing incamper vans, and it undertakes various work with Nissan vehicles as the base, including producing vehicles fullof originality and special orders to convert vehicles to camper vans.
(2) The information systems-related business
TOKYO NISSAN COMPUTER SYSTEM, which undertakes the Company’s information systems-related business,
is a subsidiary listed on JASDAQ. But as previously stated, the extent of its reliance on the Company’s Group is
extremely low at only 6.2% of sales, and it can be said to be basically independent. In the IT industry to which
TOKYO NISSAN COMPUTER SYSTEM belongs, due to the impact of the novel coronavirus pandemic, customers
are reviewing, freezing, or postponing their IT investment plans, while workstyle reforms are spreading, including
for teleworking due to the increase in the number of people working from home. Against this backdrop, demandis rising for solutions. This trend is expected to continue even after the novel coronavirus pandemic has settled
down in the form of digital transformation (DX). In this sort of business environment, TOKYO NISSAN COMPUTERSYSTEM has established its vision of “the most reliable company to handle IT infrastructure” and aims to be thebest partner that supports its customers’ sustainable growth as a managed services company that creates value
for customers. Conversely, the DX trend is also affecting the Company, and it has become necessary to utilize
the big data accumulated in the Group, such as on customers, vehicles sold, and various driving conditions andtraffic conditions, for its businesses. For this, TOKYO NISSAN COMPUTER SYSTEM is expected to be a strong
partner for the Company’s Group.

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Business description

Strengths include consolidation, best practices, and “Nissan’stechnologies”
2. The Company’s strengths
The Company’s strengths include its provision of car life one-stop services and “Nissan’s technologies” that constitute its business backbone. The Company’s one-stop services for car longevity provide services to deliver customer
satisfaction when it comes to car longevity, not only through sales of new vehicles sales but also used vehicles
and personal leasing at any single base operated by the Company. Sales can be increased through recommending
optional parts, such as car navigation systems and drive recorders, sales of after services, like insurance and financial
products (credit leasing), vehicle inspections, regular inspections, maintenance and repairs, leading to recurringbusiness that can generate stable corporate earnings. Finally, by conducting trade-ins of used vehicles, it can createa cycle of customers returning to the dealership first even when purchasing a new vehicle. This cycle of one-stop
services is one of the Company’s strengths, and actually this cycle is carried out in basically the same way at every
dealership. Therefore, rather than this cycle itself, the Company’s strength can be said to be the framework forgenerating earnings by smoothly turning this cycle, and in the background to this framework are “consolidation”
and “best practices.”
In 2011, three companies –Tokyo Nissan Auto Sales, Nissan Prince Tokyo Sales, and Nissan Prince West Tokyo
Sales –joined the Group. The first result was that discount competition between different but affiliated dealerships,
which often occurs elsewhere, was eliminated. Scale merits were also generated, and if can be said that theGroup’s scale instantaneously increased in size by three times. Of course, there were also other merits, suchas the consolidation of shared costs and the sharing of deliveries and maintenance. Moreover, since the threesales companies joined the Group in 2011, the best practices of each respective company have been developed
horizontally across the Group through shared meetings that have been continued as venues to utilize information.
As a result, the hit ratios of sales promotions and sales are increasing and the sales unit price per vehicle is rising,including through proposals for luxury upgrades and options. This is the reason why the dealerships can achieve
an operating profit margin of 3%, which is relatively high for auto-dealerships, even while being located in high-costareas like Tokyo. Also, the improvement to the hit ratio could not be achieved without the presence of TOKYONISSAN COMPUTER SYSTEM, which is able to analyze the three sales companies’ enormous volume of big data,
which totals more than 300,000 data items
When a company increases its sales and improves its profit margin, it develops increased vitality, allowing it to takerisks through its own unique business. This is the case for the previously mentioned Gtnet and Shakenkan, andthe Company is also developing P.O.P. personal leasing, for which is has a history of more than 20 years and ahigh market share. People’s values are shifting from owning various things to using and sharing them, and vehicle
personal leasing is a growth market whose scale is projected to grow by 4 times from FY2018 to FY2022. We will
not explain the details of car leasing here, but particularly for consumers who consider it acceptable to use a vehicle
without owning it, it is an extremely convenient service, including “zero deposit, tax and service charges includedin the price, and a fixed price.” For the Company also, compared to the usual purchase-replacement cycle of over
10 years, in the case of leasing, more than 70% of customers change to their next new vehicle in 3 years, so it is abusiness with a relatively good sales efficiency. Therefore, P.O.P. is expected to grow in the medium term to be oneof the drivers pushing-up the Company’s earnings. By leveraging its “uniqueness” in such ways, it is creating newsales, and at the same time, the business portfolio is also contributing to the stabilization of corporate earnings.
Moreover, it can also utilize its unique, flexible ideas for vehicle sales.

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10 22

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Business description

The website of the personal leasing P.O.P. brandSource: The Company’s website

Aiming to truly revive “Nissan’s technologies”
3. “Nissan’s technologies” are also one of the Company’s strengths
The slump of Nissan Motor’s results in the last few years has also meant a period of continuous hardship for
Nissan-affiliated dealerships. However, the focus on advanced EV is increasing day by day, such as the movement
around the world to abolish gasoline vehicles, and it appears that Nissan Motor is also escaping from its slump
at an accelerating speed. In the background to this is the fact that vehicle concepts are greatly changing due totechnological innovation in the new area called CASE*. Nissan Motor has a reputation for having original technologicalcapabilities and it has accumulated various technologies, such as for electrification and for making vehicles intelligent
and connecting them. Its “Yachiyae NISSAN” campaign, which includes TV commercials, that appeals to thesetechnologies has proven successful, and currently its image of being an EV pioneer is being firmly established.
Moreover, with these technological capabilities in the background, Nissan plans to increase the number of newvehicle launches, of which it has conducted only a small number in the last few years, and it can be said to beacquiring momentum to revive its traditional slogan of “Nissan’s Technologies.” Therefore, another of the Company’s
strengths is that it is basically the only dealership in Tokyo that deals with those Nissan Motor vehicles.
*	CASE stands for Connected, Autonomous, Shared, Electric

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11 22

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Business description

Nissan Motor plans to launch a series of advanced new vehicles
4. Nissan Motor’s strategy
NISSAN INTELLIGENT MOBILITY, is the core concept in the Nissan Motor’s campaign and it presents advanced
technologies such as vehicle recognizing the driver as its partner and communicating, learning, predicting, andcharging. Drivers can drive with peace of mind and have new experiences, and the aim is to provide a completely
new driving experience that will connect them to their surrounding world. Ultimately, the aim is to realize a society
with “zero emissions” and “zero fatalities (zero traffic accident deaths).” Alongside this, in Japan, Nissan Motorplans to launch a series of new vehicles that will be equipped with the cutting-edge technologies developed
through the NISSAN INTELLIGENT MOBILITY initiative by the end of FY2023. In its technologies for automateddriving and vehicle electrification, which are especially its strengths, for automated driving technologies, it will installa driver-assistance system ProPILOT in more than 20 products in 20 markets, and by the end of FY2023, it plans
annual sales of more than 1.5 million vehicles equipped with ProPILOT. For electrification technologies, it plans tostrengthen the existing EV and e-POWER models that were already launched, increase more than 8 EV models by
FY2023, and expand the installation of e-POWER to regular-type models. By FY2023, it is aiming to improve theelectrification rates to 60% in Japan, 23% in China, and 50% in Europe, and to achieve annual sales of more than
1 million vehicles installed with electrification technologies.
In particular, Nissan Motor plans to launch 12 new models by the end of 1H FY3/22, and quickly during FY3/21, it
has already launched 3 models; the new-model ROOX (launched March 2020) light car, KICKS e-POWER (launched
June 6), and the new-model NOTE e-POWER (launched December 23). While saying that the new-model ROOX
is a light car, it is equipped with all-direction advanced safety technologies and comes installed with technologies
including ProPILOT and SOS calls, and it has been highly evaluated as the best for safety when selecting a vehicle.
KICKS e-POWER has only the e-POWER setting, and it is a size that Nissan has not offered before, of being one
size smaller than the X-Trail, it is expected to have a sales-increase effect in the fiercely competitive SUV category.
The new-model NOTE e-POWER is the latest model of the vehicle that has been a major hit and that represents
Nissan, so naturally it is expected to increase sales and profits for the Company as well. This is not a gasoline vehicle
as previously, and it also only has the e-POWER setting. In FY3/22, Nissan Motor plans to launch ARIYA as the
new crossover EV. It will be equipped with the latest-generation EV powertrain, as well as the latest electrification
technologies, automated driving technologies, and connecting technologies, and will be able to travel very long
distances (up to 610km) on a single charge, which has been an issue for EV. It appears that it will be the vehicle thatsymbolizes NISSAN INTELLIGENT MOBILITY.
The newly launched new-model NOTE e-POWER

Source: Reprinted from materials provided by the Company

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12 22

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/█ Growth strategy
To the next Tokyo, together with customers
1. The corporate philosophy and vision
The Company’s corporate philosophy is to “Aim to continue to be the leading dealership group in Tokyo in theJapanese market.” Toward this, it promises to customers “smiles, “sincerity,” and “energy,” and it has conducted
initiatives that have emphasized the customer’s viewpoint, contributing to communities and society, a professionalawareness, best practices, organic growth, and the best conditions. Its policy is to continue these initiatives in the
future also, but currently, concerns are accumulating about the decline in demand, such as due to the declining
birthrate and aging population occurring as technologies are evolving dramatically, and it is said that the automotive
industry has entered “a period of great reforms that occurs once every 100 years.” Up to the present time, the Group
has accumulated stock businesses centered on the vehicle-related business and maintained high earnings throughits strengths, of pursuing best practices and synergies. Going forward also, in order to further strengthen its existing
business and to continue to realize sustainable growth, it has formulated a four-year medium-term management
plan from FY3/20 to FY3/21. The Company formulated a four-year medium-term management plan covering theperiod from FY3/20 to FY3/21 under the slogan of “To the next Tokyo, together with customers” in order to further
strengthen existing business and to continue realizing sustainable growth. It aims to “continue to be the leading
dealership in Tokyo in the Japanese market” and respond to the changing times by working on achieving the threetargets and tackling the related issues. Assuming that domestic vehicles sales will decline moderately, the Company
has set targets of net sales of ¥175bn and operating profit of ¥5.5bn for FY3/22, the plan’s final fiscal year. But
these targets do not greatly incorporate the impact of the novel coronavirus pandemic at the present time and will
be reconsidered at a later date.

The keys to growth are best practices, new sales styles, and M&A
2. Medium-term management plan
The medium-term management plan’s three targets to be realized are achieving the sustainable growth of the existing
businesses, responding to the changing times and customer needs, and developing and implementing a growthstrategy toward the future. To address the respective issues relating to these targets to be realized, the Company will
step up implementation of best practices, develop new sales styles and new products, and increase scale throughM&A. Even when considering the impact of the novel coronavirus pandemic, the importance of these measures does
not change. For this reason, there is no need to change the direction of the measures, and rather, it is consideredthat they should be steadily implemented in order to overcome the coronavirus conditions.
First, as the measures to step up implementation of best practices, the aim is to improve customer satisfaction (CS)and to thoroughly standardize work and further improve productivity by continuing to horizontally develop and to evolve
within the Group the best practices of the three sales companies. The Company will position the NISSAN INTELLIGENT
MOBILITY initiative promoted by Nissan Motor as its core, and provide optimal proposals that will accurately capture
the changing times and customers’ needs through best practices. It aims to increase sales of products for car longevity
that match those needs, promote P.O.P. personal leases as a way of driving for a new era, thoroughly conduct
added-value sales such as for L2H* in line with the EV era, and maximize its market share and profits.
*	L2H (Leaf to Home): a device to feed electricity from EV to externally (the home as a whole, electric products, etc.)

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13 22

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Growth strategy

As the measures to develop new sales styles and new products, the Company is investing in dealerships centeredon IT and reforming sales methods. For sales styles, within the period of the medium-term management plan, it isconsidering introducing VR (Virtual Reality), which is expected to be the optimal tool for vehicle promotions, and inparticular to use it when dealing with customers in city-center dealerships, and also to introduce a completely online
sales method in response to customer needs. For new product development, it is aiming to increase earnings bydeveloping new products and services to provide customers with a car life that is safe, secure, and convenient,including the Maintenance Pro Pack* compatible with NISSAN INTELLIGENT MOBILITY, and car sharing of models
used for test drives.
*	Maintenance Pro Pack: a package product providing discounts on vehicle inspections and other services.

For the measures to increase scale through M&A, up to the present time the Company has conducted acquisitions
to pursue uniqueness, such as of Gtnet. In the future also, it plans to leverage synergies through MA& for thesustainable growth of the Group. Its M&A targets are mainly companies conducting a vehicle-related business,while in terms of area, it considers candidates to grow geographically in Tokyo and its surrounding areas. Its goal
is to conduct one M&A a year, but it is unable to know whether it can conduct M&A on timing that is convenient.
However, to show the strong intentions of management, M&A have been incorporated into the previously mentioned
targets to a certain extent in the medium-term management plan.
In order to steadily eliminate the issues for the three targets to be realized, it is thought necessary to foster anorganizational culture and to invest in dealerships. Therefore, the Company’s policy is to foster an organizational
culture that prioritizes diversity in which employees can demonstrate their individuality, and to have employees
coordinate and collaborate so they can leverage their capabilities to the greatest possible extent. Supported by this,the Company plans to provide value that goes beyond customers’ expectations and realizing sustainable growth as
a company. Meanwhile, because the company’s dealerships have a long history, there are some dealerships facing
issues. For instance, road conditions have changed over the years or become narrower, traffic flow in customer
parking lots has worsened, and there is insufficient space to introduce new services or products. Therefore, it isanticipated that it will actively strengthen investment to improve customer convenience, including increasing thefloorspace of existing dealerships (scrap & build may also be necessary, depending on the circumstances).

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14 22

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/█ Business trends
Improved the earnings structure by having three sales companies
join the Group
1. Turning point
A major turning point was in 2011 when the Company quickly made the three sales companies and join the Group.
This improved efficiency through scale merits and consolidation and enabled it to have a corporate structure todevelop an independent strategy to promote growth, which as stated, has become the Company’s strength. The
Group’s main organization is currently Tokyo Nissan Auto Sales, and in fact, after it joined the Group in 2011,not only did the scale of sales increase, but the operating profit margin also improved greatly and since then, it
has continued to stably generate earnings. Of course, as a listed company it cannot be satisfied only by stably
generating earnings, and therefore the previously mentioned growth strategy was developed. However, the novel
coronavirus pandemic has been an unexpected development. In the automotive industry, in which conditions havebecome particularly severe even compared to those in various other industries, since 1Q FY3/21, sales and profits
have declined significantly for the Company also. On other hand, against the backdrop of the evolution of vehicle
technologies, as represented by NISSAN INTELLIGENT MOBILITY, expectations for growth are great. In this sense,
it is thought that the current time has also become a major turning point.
Stable trends in net sales, operating profit, and the operating profit margin after joining the Group

Source: Reprinted from the Company’s financial results briefing materials

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15 22

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Business trends

Results struggled but have bottomed-out in April and May andbusiness conditions are recovering
2. 1H FY3/21 results
In the 1H FY3/21 results, net sales were ¥62,946mn (down 17.5% YoY), operating profit was ¥251mn (down
89.3%), ordinary profit was ¥83mn (down 96.2%), and profit attributable to owners of parent was ¥4mn (down
99.7%). However, compared to the 1Q’s 3 month, in the 2Q’s 3 months, the gross profit margin recovered due tothe recovery of sales, while the Company also kept down SG&A expenses, the same as it did in the 1Q. As a result,it was able to eliminate the 1Q loss.
1H FY3/21 results(¥mn)
1H FY3/20

1H FY3/21

Result% of sales

Result% of sales% change

Net sales

76,274100.0%

62,946100.0%-17.5%

Gross profit

17,53623.0%

13,98022.2%-20.3%

SG&A expenses

15,18019.9%

13,729

21.8%

-9.6%

Operating profit

2,355

3.1%

251

0.4%

-89.3%

Ordinary profit

2,194

2.9%

83

0.1%

-96.2%

Profit attributable to owners of parent

1,388

1.8%

4

0.0%

-99.7%

Source: Prepared by FISCO from the Company’s financial results

1Q FY3/21 standalone results(¥mn)
1Q FY3/20

1Q FY3/21

Result% of sales

Result% of sales% change

Net sales

34,317100.0%

25,500100.0%-25.7%

Gross profit

7,921

23.1%

5,439

21.3%

-31.3%

SG&A expenses

7,256

21.1%

6,539

25.6%

-9.9%

Operating profit

664

1.9%

-1,099-4.3%-

Ordinary profit

627

1.8%

-1,156-4.5%-

Profit attributable to owners of parent

401

1.2%

-982

-3.9%

-

Source: Prepared by FISCO from the Company’s financial results

2Q FY3/21 standalone results(¥mn)
2Q FY3/20

2Q FY3/21

Result% of sales

Result% of sales% change

Net sales

41,957100.0%

37,446100.0%-10.8%

Gross profit

9,615

22.9%

8,541

22.8%

-11.2%

SG&A expenses

7,924

18.9%

7,190

19.2%

-9.3%

Operating profit

1,691

4.0%

1,350

3.6%

-20.2%

Ordinary profit

1,567

3.7%

1,239

3.3%

-20.9%

987

2.4%

986

2.6%

-0.1%

Profit attributable to owners of parent

Source: Prepared by FISCO from the Company’s financial results

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16 22

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Business trends

Looking at the market conditions in 1H FY3/21, due to the impact of the novel coronavirus pandemic, the numberof new vehicles sales nationwide declined 22.6% YoY, while the number of new vehicles sales within Metropolitan
Tokyo, which is the Company’s market, declined 25.4% in total and decreased 23.7% for the Company. On considering the respective declines of the above in the 1Q, of 31.8%, 36.2%, and 35.8%, we can see that while thelevel remains low, sales are recovering on a quarterly basis. Looking at the trend in the number of new vehicles
sales in Tokyo on a monthly basis as well, we can see that they bottomed-out in April and May and are recovering.

Trend in the number of new vehicles sales on a monthly basis(2020, Metropolitan Tokyo)(vehicles)
35,00030,00025,00020,00015,00010,000
5,000
0

Jan.

Feb.

Mar.

Apr.

May

June

July

Aug.

Sept.

Oct.

Nov.

Dec.

Note: excludes special vehicles, trailers, and other unknowns. Includes buses, etc.
Source: Prepared by FISCO from the Japan Automobile Dealers Association website

By business, in the vehicle-related business, net sales were ¥59,644mn (down 17.4% YoY), and segment profit(operating profit) was ¥479mn (down 80.6%), eliminating the loss in the 1Q and achieving profitability. The numberof new vehicles sales for the 3 months in the 1Q (April to June) decreased greatly, down 35.8% compared to thesame quarter in the previous fiscal year. But in the 2Q on a standalone basis (July to September), the rate of decrease
improved greatly, to a decrease of 14.0%. Alongside the recovery in the number of new vehicles sales, used vehicles
sales also recovered. Conversely, in the maintenance business, as it is a recurring business, the number of vehicles
serviced was secured at the same level as in the previous year. In the 2Q on a standalone basis, it can be said thatthe recovery of the vehicle-related business’ profitability was remarkable, including that the decline in the operating
profit margin was only 0.2 of a percentage point (pp). In the information systems-related business, net sales were
¥3,141mn (down 20.0% YoY) and segment profit was ¥99mn (down 60.9%). Results were solid in the managed
services business, which includes the data centers, while progress was made in reducing SG&A expenses. However,
due to the impact of the novel coronavirus pandemic, including that customers reviewed (postponed, contracted,
and suspended) their IT investment, and that delivery periods were delayed because of restrictions on entering
customers’ premises, recurring projects decreased, including for hardware and introduction-support services. As aresult, although the ordering conditions improved, net sales trended at a low level in the severe conditions.

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17 22

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.

15-Jan.-2021

8291 Tokyo Stock Exchange First Section

https://www.nissan-tokyo-hd.co.jp/ir/

Business trends

1H FY3/21 results by segment (before adjustments)(¥mn)
Net sales

1H FY3/20

1H FY3/21

Result% of sales

Result% of sales% change

Vehicle-related business

72,184

94.6%

59,64494.8%-17.4%

Information systems-related business

3,925

5.1%

3,141

5.0%

-20.0%

165

0.2%

161

0.3%

-2.4%

Other businesses

Segment profit

1H FY3/20
Result1H FY3/21

Profit margin

ResultProfit margin% change

2,476

3.4%

479

0.8%

-80.6%

Information systems-related business

254

6.5%

99

3.2%

-60.9%

Other businesses

67

40.6%

65

40.4%

-3.0%

Vehicle-related business

Source: Prepared by FISCO from the Company’s financial results

1Q FY3/21 (standalone) results by segment (before adjustments)(¥mn)
Net sales

1Q FY3/20

1Q FY3/21

Result% of sales

Result% of sales% change

Vehicle-related business

32,342

94.2%

24,141

94.7%-25.4%

Information systems-related business

1,892

5.5%

1,278

5.0%

-32.5%

82

0.2%

80

0.3%

-2.4%

Other businesses

Segment profit

1Q FY3/20
Result1Q FY3/21

Profit margin

ResultProfit margin% change

Vehicle-related business

766

2.4%

-962

-4.0%

-

Information systems-related business

79

4.2%

22

1.7%

-72.1%

Other businesses

35

42.7%

32

40.0%

-8.6%

Source: Prepared by FISCO from the Company’s financial results

2Q FY3/21 (standalone) results by segment (before adjustments)(¥mn)
Net sales

2Q FY3/20

2Q FY3/21

Result% of sales

Result% of sales% change

Vehicle-related business

39,84295.0%

35,50394.8%-10.9%

Information systems-related business

2,033

4.8%

1,863

5.0%

-8.4%

83

0.2%

81

0.2%

-2.4%

Other businesses

Segment profit

2Q FY3/20
Result2Q FY3/21

Profit margin

ResultProfit margin% change

1,710

4.3%

1,441

4.1%

-15.7%

Information systems-related business

175

8.6%

77

4.1%

-56.0%

Other businesses

32

38.6%

33

40.7%

3.1%

Vehicle-related business

Source: Prepared by FISCO from the Company’s financial results

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18 22

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.

15-Jan.-2021

8291 Tokyo Stock Exchange First Section

https://www.nissan-tokyo-hd.co.jp/ir/

Business trends

Expectations are high for launches of new models against the
backdrop of NISSAN INTELLIGENT MOBILITY
3. FY3/21 results outlook and medium-term growth image
For the FY3/21 results outlook, the Company is forecasting net sales of ¥130,000mn (down 15.1% YoY), operating
profit of ¥1,800mn (down 58.6%), ordinary profit of ¥1,400mn (down 65.2%), and profit attributable to owners ofparent of ¥200mn (down 91.1%). Initially it did not decide on forecasts because it was difficult to rationally calculatethem due to the impact of the novel coronavirus pandemic. But although the time when the novel coronavirus
situation will settle down remains unclear, a gradual recovery is occurring, such as that sales of new vehicles
bottomed in April and May during the declaration of a state of emergency, and it seems that the Company calculated
the results forecasts on the assumption that the recovery conditions will continue. Toward the 2H, its policy is torecover new vehicles sales, mainly of the vehicles already launched or scheduled to be launched in FY3/21, including
KICKS e-POWER, the new-model NOTE e-POWER, and the new model ROOX light car, and also of the SERENA
minivan that continues to be popular, and LEAF, the pioneering EV.
FY3/21 results outlook(¥mn)
FY3/20FY3/21Result% of sales

Forecast% of sales% change

Net sales

153,147

100.0%

130,000

100.0%-15.1%

Gross profit

34,735

22.7%

-

-

-

SG&A expenses

30,384

19.8%

-

-

-

Operating profit

4,350

2.8%

1,800

1.4%

-58.6%

Ordinary profit

4,024

2.6%

1,400

1.1%

-65.2%

Profit attributable to owners of parent

2,246

1.5%

200

0.2%

-91.1%

Source: Prepared by FISCO from the Company’s financial results

The medium-term management plan is currently underway, but unavoidably due to the novel coronavirus pandemic,
there has been a significant shift from the initial growth image. However, the Company is actively conducting sales
against the backdrop of Nissan Motor’s NISSAN INTELLIGENT MOBILITY initiative, and plans to launch several
new EV models and new models equipped with e-POWER, while the introduction of ProPILOT has also entered thepractical-usage stage. Moreover, NISSAN INTELLIGENT MOBILITY itself is benefiting from developments, such as
the movement to abolish gasoline vehicles, and the Company’s strengths are currently recovering. On considering
these conditions, while it may be necessary to revise the target values in the medium-term management plan, it
is not thought necessary to change the basic growth strategy. In this case, it is anticipated that the Company will
return to the growth trend it originally depicted sooner rather than later.

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19 22

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Business trends

Medium-term growth image
FY3/23 initial forecasts
New measures + M&A
Net sales：¥175,000mn
Operating profit：¥5,500mn
FY3/19 results
Net sales：¥115,801mn
Operating profit：¥4,721mn

Novelcoronavirus

Initial image
ResultFY3/19FY3/20FY3/21E

FY3/22E

FY3/23E

Source: Prepared by FISCO from the Company’s results briefing materials█ Shareholder return policy
Even during the coronavirus, continues to stably pay dividends
1. Dividend policy
The Company is aware that returning profits to shareholders is one of its most important management issues, and its
basic policy is to stably pay dividends while considering retaining internal reserves to secure growth potential. For thedividend payment, its basic policy is to pay once a year at the end of the period, and the deciding body is the general
meeting of shareholders. It also stably conducts investment in each period, including to realize new sales styles andfor the IT associated with this, and also to establish new dealerships and to refurbish existing dealerships. Basedon these factors, it targets a dividend payout ratio of 30%. For the FY3/21 dividend, it is forecasting a period-end
dividend of ¥4 based on this basic policy and the results forecasts.

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20 22

COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/

Shareholder return policy

Trends in the dividend per share and the dividend payout ratio
Dividend per share (left)（¥）

Dividend payout ratio(right)

10.0

（%）

132.5
8.0

8.0

8.0

8.0

150.0
120.0

7.0

6.0

90.0
4.0

4.0

4.0

60.0

2.0

30.0

13.7

13.3
24.2

19.5

0.0
FY3/16

FY3/17

FY3/18

FY3/1911.8
FY3/200.0
FY3/21E

Source: Prepared by FISCO from the Company’s financial results

In the shareholder benefits program, gives original QUO cards
2. Shareholder benefits program
The Company has introduced a shareholder benefits program in order to express it gratitude to its investors fortheir support, and also to increase the appeal of investing in its shares and to encourage investors to hold its shares
over the medium- to long-term. The shareholders eligible for the shareholder benefit program are those who holdat least 5 units (500 shares) of the Company shares and who were recorded or registered in the shareholders’registry as of the date of record (March 31). In this program, the Company plans to give an original QUO card worth¥1,000 to shareholders holding 500 to 999 shares and worth ¥2,000 to those holding 1,000 to 4,999 shares. It will
give a card worth ¥3,000 to shareholders continuously holding 5,000 or more shares for less than 2 years, and acard worth ¥5,000 to those continuously holding them for 2 years or longer. As the gift-giving period, the Company
plans to give the cards once a year after the end of the ordinary general meeting of shareholders (sometime in thesecond half of June).
Gift to shareholders of original QUO cards
107th period

108th period

Source: The Company’s website

We encourage readers to review our complete legal statement on “Disclaimer” page.

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COMPANY RESEARCH AND ANALYSIS REPORTFISCO Ltd.
https://www.fisco.co.jp

Nissan Tokyo Sales Holdings Co., Ltd.
8291 Tokyo Stock Exchange First Section

15-Jan.-2021
https://www.nissan-tokyo-hd.co.jp/ir/█ Information security
The Company complies with all relevant laws and ordinances, including the Act on the Protection of Personal
Information and the Act on the Use of Numbers to Identify a Specific Individual in Administrative Procedures (MyNumber Act), as well as in-Company regulations. It appropriately collects and uses the personal information handled
by each Group Company and information that can be used to identify specific individuals, including personal
numbers and other information that identifies an individual (personal information including the personal number
and its content). It also appropriately manages and handles personal information securely and in an up-to-datecondition, protects the personal information of customers, business partners, and Company employees, and works
to respond to the trust they place in it.

We encourage readers to review our complete legal statement on “Disclaimer” page.

22 22

Disclaimer
FISCO Ltd. (“FISCO”) offer stock price and index information for use under the approval of theTokyo Stock Exchange, the Osaka Stock Exchange and Nikkei Inc.
This report is provided solely for the purpose of offering information, and is not a solicitationof investment nor any other act or action.
FISCO prepared and published this report based on information which it considered reliable;
however, FISCO does not warrant the accuracy, completeness, fitness nor reliability of thecontents of this report or the said information.
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mentioned in this report may increase or decrease in value or lose their value due to influence
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◾ For inquiry, please contact: ◾

FISCO Ltd.
5-11-9 Minami Aoyama, Minato-ku, Tokyo, Japan 107-0062
Phone: 03-5774-2443 (Financial information Dept.)
Email: support@fisco.co.jp