FY2015 First-quarter Financial Results

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1 FY2015 First-quarter Financial Results Nissan Motor Co., Ltd July 29, 2015 Key performance indicators : financial results (TSE report basis - China JV Equity basis) Net revenue Operating profit Net income* Free cash flow (Auto) Net cash (Auto) 1, , , * Net income attributable to owners of the parent All rights reserved. 2

2 business update 1st quarter sales performance 1st quarter consolidated financial performance All rights reserved. 3 business update Product offensive continues Maxima in US Lannia in China All rights reserved. 4

3 business update Common Module Families update X-Trail Hybrid in Japan Rogue production in Kyushu All rights reserved. 5 business update LCV business NV200 Taxi in Japan NP300 Frontier All rights reserved. 6

4 business update Quality and Brand Quality enhancement Largest rank improvement in J.D. Power 2015 Initial Quality Study Brand value improvement UEFA champions league partnership 5th Nissan Stadium in US 23rd All rights reserved. 7 business update Zero-emission leadership Infrastructure No Charge to Charge in US Business expansion Commercial use for second-life lithium-ion vehicle batteries Partnership with Yokosuka city All rights reserved. 8

5 business update Alliance Cumulative EV sales of Alliance reached 250,000 units Posted record synergies of 3.8 billion euros in 2014 ( billion) All rights reserved. 9 business update 1st quarter sales performance 1st quarter consolidated financial performance All rights reserved. 10

6 1st quarter sales performance: Global TIV *1 Retail volume vs. Global +1.5% Japan -5.5% China +5.7% M/S *2 5.7% 1, *3 M/S *2 1, % *4 vs. Global +4.4% Japan -10.0% China +11.3% *5 (million units) 5.22 (4.42) (4.57) 4.72 North America (US) Europe +4.3% (+3.3%) +0.7% (thousand units) 446 (350) 486 (369) North America (US) +8.9% (+5.5%) Europe +10.7% Others -3.8% Others -1.6% *1: Nissan s estimation *2: Market Share *3: Wholesale base *4: PV: Retail sales base, LCV: Wholesale base *5: After adjustment for PV in 2014 to retail base All rights reserved. 11 1st quarter sales performance: Japan (thousand units) (%) Retail volume % Market share -0.5 points TIV: 1.10 million units, -5.5% Sales: 120 k units, -10.0% Market share: 11.0%, -0.5 points X-Trail: 11.7 k units DAYZ / DAYZ ROOX: 28.2 k units X-Trail DAYZ ROOX All rights reserved. 12

7 1st quarter sales performance: China (thousand units) Retail volume 266 * % Market share *1 296 (Jan. to Mar.) *3 TIV : 5.94 million units, +5.7% Sales: 296 k units, +11.3% Market share: 5.0%, +0.3 points Sylphy series: 79.7 k units 2Q (Apr. to Jun.) *3 TIV : 5.46 million units, +0.4% Sales: 292 k units, +0.5% Market share: 5.3%, 0.0 points *2 *2 *2 * points X-Trail Sylphy (%) * * 1: PV: Retail sales base, LCV: Wholesale base * 2: PV volume was restated to retail sales base for comparison * 3: PV and LCV only All rights reserved. 13 1st quarter sales performance: North America (thousand units) US Retail volume % +0.2 points 369 US Market share US TIV: 4.57 million units, +3.3% Sales: 369 k units, +5.5% Market share: 8.1%, +0.2 points Canada Sales: 37 k units, +13.6% Market share: 6.5%, +0.5 points Mexico Sales: 80 k units, +25.0% Market share: 26.3%, +0.7 points (%) Altima Rogue All rights reserved. 14

8 1st quarter sales performance: Europe (thousand units) Retail volume % Market share 189 TIV: 4.72 million units, +0.7% Europe excluding Russia: 155 k units, +17.5% Russia: 34 k units, -12.6% Market share: Europe excl. Russia 3.4% 3.6% Russia 6.1% 8.5% (%) +0.2 points Qashqai Pulsar All rights reserved. 15 1st quarter sales performance: Other markets Estimated TIV: 4.82 million units, -3.8% (thousand units) Retail volume -1.6% Sales: 203 k units, -1.6% Asia & Oceania: 87 k units, -3.9% Latin America: 42 k units, -2.5% Middle East: 49 k units, -6.3% Africa: 25 k units, +22.3% NP300 Navara Datsun GO+ Panca All rights reserved. 16

9 business update 1st quarter sales performance 1st quarter consolidated financial performance All rights reserved. 17 1st quarter financial performance (TSE report basis - China JV Equity basis) Net revenue Ordinary profit Extraordinary Profit before tax FX rate Operating profit OP margin 5.0% 6.7% Non-operating Net income Taxes Effective tax rate 20.9% 27.1% * Minority interest ** 2, JPY/USD JPY/EUR Variance 2, JPY/USD JPY/EUR JPY/USD -5.9 JPY/EUR Change vs. (%) +17.6% +58.0% +45.2% +45.3% +36.3% * Net income attributable to non-controlling interests ** Net income attributable to owners of the parent All rights reserved. 18

10 1st quarter financial performance (TSE report basis - China JV Equity basis) Operating profit variance analysis O.P. FOREX Cost items * Volume / mix Marketing & Selling exp. R&D exp. MFG exp. Other items O.P. * Including purch. cost reduction, raw material and product enrichment All rights reserved. 19 1st quarter financial performance (TSE report basis - China JV Equity basis) Free cash flow (Auto business) Net cash inflow from P&L items AP / AR Inventory Tax / other operating activities Cash flow from operating activities CAPEX* Others Free cash flow * CAPEX does not include finance lease-related investments All rights reserved. 20

11 Inventory management (excluding China JV) Inventory status 1, (thousand units) Jun. Sep. Dec. Dealer inventory, except some minor countries Consolidated Nissan inventory, except some minor countries 2015 Mar. Jun. All rights reserved. 21 Net Cash (Auto business) (TSE report basis - China JV Equity basis ) ,500 1,500 1, , , , , FX: JPY/USD End of month Mar Jun FX: JPY/USD End of month Mar Jun All rights reserved. 22

12 Key performance indicators: financial results (management pro forma basis * ) Net revenue Operating profit ** Net income Free cash flow (Auto) Net cash (Auto) 3, , , , * Based on continuation of proportionate consolidation of China JV ** Net income attributable to owners of the parent All rights reserved. 23 1st quarter financial performance (management pro forma basis* ) Variance Change vs. (%) Net revenue 2, , % Operating profit % OP margin 5.8% 7.0% +1.2% ** Net income % FX rate JPY/USD JPY/EUR JPY/USD JPY/EUR JPY/USD -5.9 JPY/EUR * Based on continuation of proportionate consolidation of China JV ** Net income attributable to owners of the parent All rights reserved. 24

13 shareholder return outlook dividend per share (yen) % FY11 FY12 FY13 (Forecast) All rights reserved. 25 All rights reserved. 26

14 Appendix Sales financing: funding sources (As of June 2015) ABS On B/S 27.2% ABS Off B/S 2.4% Equity 10.5% Group Finance (Inter-Company) 19.1% Commercial paper 3.2% S/T Loan 3.1% Bonds 10.8% L/T Loan 23.7% Total funding amount 8,791billion yen All rights reserved. 28

15 Sales financing: penetration Lease Retail (%) 100% 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% 0 5% 6% 26% 28% NFS NMAC NCF NRFM 25% 25% 30% 34% 41% 47% 37% 35% NFS: Nissan Financial Services, sales finance company in Japan NMAC: Nissan Motor Acceptance Corporation, sales finance company in US NCF: Sales financing division of Nissan Canada Inc NRFM: NR Finance Mexico, sales finance company in Mexico 42% 44% All rights reserved. 29 Sales financing: net credit loss ratio Variance NFS Lease: 0.04% Retail: 0.14% Lease: 0.04% Retail: 0.11% Lease: Retail: +0.00% -0.03% NMAC Lease: 0.16% Retail: 0.54% Lease: 0.25% Retail: 0.71% Lease: Retail: +0.09% +0.17% NCF Lease: Retail: 0.15% 0.48% Lease: Retail: 0.20% 0.41% Lease: Retail: +0.05% -0.07% NFS: Nissan Financial Services, sales finance company in Japan NMAC: Nissan Motor Acceptance Corporation, sales finance company in US NCF: Sales financing division of Nissan Canada Inc All rights reserved. 30

16 Sales financing: operating profit & asset NFS ( NFS : billion yen, NMAC : million USD, NCF : million CAD, NRFM : million Peso) Asset: OP: 1,143.1 Asset: 6.4 OP: 1, Asset: OP: Variance NMAC Asset: OP: 50,371 Asset: 259 OP: 55, Asset: OP: +5, NCF Asset: OP: 4,312 Asset: 25 OP: 5, Asset: OP: NRFM Asset: OP: 57,386 Asset: 528 OP: 76, Asset: +19,421 OP: +221 NFS: Nissan Financial Services, sales finance company in Japan NMAC: Nissan Motor Acceptance Corporation, sales finance company in US NCF: Sales financing division of Nissan Canada Inc NRFM: NR Finance Mexico, sales finance company in Mexico All rights reserved. 31 1st quarter financial performance (TSE report basis - China JV Equity basis) Operating profit variance analysis 1. Foreign exchange impact USD THB -8.2 RUB -6.9 ( ) ( ) Others -3.9 ( ) 2. Volume / mix Japan US Vol: Mix: Vol: Mix: EUR Vol: Mix: MEX&CAN Others Selling expenses Japan +0.6 Incentives: Others: US Incentives: Others: EUR Incentives: Others: MEX&CAN Others All rights reserved. 32

17 1st quarter retail sales Detail of other markets (thousand units) Asia & Oceania Latin America M.East Africa All rights reserved. 33

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