FY2014 first-quarter financial results

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1 FY2014 first-quarter financial results Nissan Motor Co., Ltd July 28, 2014 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) 2, , xxxx All rights reserved. All rights reserved. 2

2 business update 1st quarter sales performance 1st quarter consolidated financial performance 3 xxxx All rights reserved. All rights reserved. 3 business update Common Module Families update Cumulative sales 4 xxxx All rights reserved. All rights reserved. 4

3 business update Opened new plants Cumulative sales Thailand, 2nd plant Brazil, Resende Indonesia, 2nd plant 5 xxxx All rights reserved. All rights reserved. 5 business update Next generation pickup truck 6 xxxx All rights reserved. All rights reserved. 6

4 business update Zero-emission leadership EV models Cumulative global sales of Nissan LEAF reached 124,000 units EV infrastructure OEM jointly established new company, Nippon Charge Service in Japan Commercial EV e-nv200 No Charge to Charge program in US 7 xxxx All rights reserved. All rights reserved. 7 business update Datsun update Datsun GO+ Panca in Indonesia Datsun on-do in Russia 8 xxxx All rights reserved. All rights reserved. 8

5 business update Alliance and strategic cooperation Renault-Nissan Alliance posted record synergies of 2.9 billion euros in 2013 Engine assembly for Infiniti Q50 and Mercedes-Benz C-Class in US Joint development and production in Mexico for Infiniti and Mercedes-Benz 9 xxxx All rights reserved. All rights reserved. 9 business update 1st quarter sales performance 1st quarter consolidated financial performance 10 xxxx All rights reserved. All rights reserved. 10

6 1st quarter sales performance: Global TIV* Retail volume vs. Global +2.7% Japan -1.9% **M/S 5.5% 1,170 **M/S 1, % vs. Global +6.0% Japan -0.5% 5.62 China +9.1% 283 China *** +21.1% (million units) 5.22 (4.42) 4.69 North America (US) Europe +6.0% (+6.9%) +1.9% (thousand units) 446 (350) 171 North America (US) Europe +12.6% (+14.1%) +13.3% 5.00 Others -5.0% 206 Others +0.8% *Nissan s estimation ** Market Share *** After adjustment of CV spin off 11 xxxx All rights reserved. All rights reserved. 11 1st quarter sales performance: Japan (thousand units) (%) Retail volume % Market share +0.1 points TIV: 1.16 million units, -1.9% Sales: 134 k units, -0.5% Market share: 11.5%, +0.1 points New X-Trail: 10.3 k units DAYZ / DAYZ ROOX: 37.8 k units X-Trail DAYZ ROOX 12 xxxx All rights reserved. All rights reserved. 12

7 1st quarter sales performance: China (Jan. to Mar.) (thousand units) Retail volume % Market share +0.5 points *1 283 (Jan. to Mar.) *2 TIV : 5.62 million units, +9.1% Sales: 283 k units, +21.1% Market share: 5.0%, +0.5 points Sylphy sales: 69 k units, +25.2% 2Q (Apr. to Jun.) *2 TIV : 5.43 million units, +8.8% Sales: 337 k units, +9.6% Market share: 6.2% Venucia R50 *3 Sylphy *3 (%) * 1: Sales to dealers * 2: TIV for China : Passenger and LCV only * 3: After adjustment of CV spin off 13 xxxx All rights reserved. All rights reserved. 13 1st quarter sales performance: North America (thousand units) US Retail volume % +0.5 points 350 US Market share US TIV: 4.42 million units, +6.9% Sales: 350 k units, +14.1% Market share: 7.9%, +0.5 points Canada Sales: 32 k units, +28.2% Market share: 6.0%, +1.2 points Mexico Sales: 64 k units, -0.3% Market share: 25.6%, +0.5 points (%) Altima Rogue 14 xxxx All rights reserved. All rights reserved. 14

8 1st quarter sales performance: Europe (thousand units) Retail volume % Market share 171 TIV: 4.69 million units, +1.9% Europe excluding Russia: 132 k units, +9.0% Russia: 39 k units, +31.2% Market share: Russia 4.1% 6.1% Europe excl. Russia 3.2% 3.4% (%) +0.4 points Qashqai Note 15 xxxx All rights reserved. All rights reserved. 15 1st quarter sales performance: Other markets Estimated TIV: 5.00 million units, -5.0% Sales: 206 k units, +0.8% (thousand units) Retail volume +0.8% Asia & Oceania: 90.2 k units, +6.2% Latin America: 42.7 k units, -12.6% Middle East: 52.7 k units, +10.9% Datsun GO Terrano 16 xxxx All rights reserved. All rights reserved. 16

9 business update 1st quarter sales performance 1st quarter consolidated financial performance 17 xxxx All rights reserved. All rights reserved. 17 1st quarter financial performance (TSE report basis - China JV Equity basis) Net revenue 2,232.9 Variance 2, Change vs. (%) +10.4% Operating profit OP margin 4.8% 5.0% Non-operating % Ordinary profit Extraordinary % Profit before tax Taxes Effective tax rate 24.2% 20.9% Minority interest % Net income FX rate JPY/USD JPY/EUR JPY/USD JPY/EUR JPY/USD JPY/EUR +36.7% 18 xxxx All rights reserved. All rights reserved. 18

10 1st quarter financial performance (TSE report basis - China JV Equity basis) Operating profit variance analysis O.P. Purch. cost reduction (Including raw material) Volume / mix Selling exp. R&D & MFG exp. Warranty & Recall exp. Other items O.P. (C) Copyright NISSAN MOTOR CO., LTD. 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* * CAPEX does not include finance lease-related investments 20 xxxx All rights reserved. All rights reserved Others +3.3 Free cash flow

11 Inventory management (excluding China JV) Inventory status 1,000 (thousand units) Jun. Sep. Dec Mar. Jun. Dealer inventory, except some minor countries Consolidated Nissan inventory, except some minor countries 21 xxxx All rights reserved. All rights reserved. 21 Net Cash Auto business (TSE report basis - China JV Equity basis ) ,200 1,200 1, ,000 1, Mar. Jun FX: JPY/USD End of month FX: JPY/USD End of month Mar Jun xxxx All rights reserved. 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) 2, , , * Based on continuation of proportionate consolidation of China JV 23 xxxx All rights reserved. All rights reserved. 23 1st quarter financial performance (management pro forma basis* ) Variance Change vs. (%) Net revenue 2, , % Operating profit % OP margin 4.7% 5.8% +1.1% Net income % FX rate 98.8 JPY/USD JPY/EUR JPY/USD JPY/EUR +3.4 JPY/USD JPY/EUR * Based on continuation of proportionate consolidation of China JV 24 xxxx All rights reserved. All rights reserved. 24

13 25 xxxx All rights reserved. All rights reserved. 25 Appendix 26 xxxx All rights reserved. All rights reserved. 26

14 Sales financing: funding sources (As of June 2014) ABS On B/S 25.2% ABS Off B/S 3.3% Equity 9.6% Group Finance (Inter-Company) 21.1% Commercial paper 2.0% S/T Loan 3.2% Bonds 11.4% L/T Loan 24.2% Total funding amount 6,897 billion yen 27 xxxx All rights reserved. All rights reserved. 27 Sales financing: penetration % NFS NMAC NCF NRFM 4% 30% 26% 44% 41% 5% 27% 25% 35% 30% 37% 37% 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 Lease Retail 39% 42% 28 xxxx All rights reserved. All rights reserved. 28

15 Sales financing: net credit loss ratio Variance NFS Lease: 0.03% Retail: 0.15% Lease: 0.04% Retail: 0.14% Lease: Retail: +0.01% -0.01% NMAC Lease: 0.24% Retail: 0.74% Lease: 0.16% Retail: 0.54% Lease: Retail: -0.08% -0.20% NCF Lease: 0.10% Retail: 0.20% Lease: Retail: 0.15% 0.48% Lease: Retail: +0.05% +0.28% 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 29 xxxx All rights reserved. All rights reserved. 29 Sales financing: operating profit & asset NFS ( NFS : billion yen, NMAC : million USD, NCF : million CAD, NRFM : million Peso) 1, , Variance NMAC 43, , , NCF 3, , NRFM 47, , , 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 30 xxxx All rights reserved. All rights reserved. 30

16 1st quarter financial performance ( TSE report basis China JV Equity basis ) Operating profit variance analysis 1. Volume / mix Japan +8.3 US +7.2 EUR -1.5 Vol: Mix: Vol: Mix: Vol: Mix: MEX&CAN Others Selling expenses Japan -2.4 Incentives: Others: US&CAN Incentives: Others: EUR +6.7 Incentives: Others: Others Incentives: Others: xxxx All rights reserved. All rights reserved. 31 1st quarter financial performance ( TSE report basis China JV Equity basis ) Detail of non-operating income/expenses Variance Interest income / expenses FX translation Derivative gain/loss Profit/Loss under equity methods Amortization of net retirement benefit Dividends income Others xxxx All rights reserved. All rights reserved. 32

17 1st quarter financial performance ( TSE report basis China JV Equity basis ) Detail of extraordinary gains/losses Variance Sale/disposal of fixed assets Impairment loss on fixed assets Others xxxx All rights reserved. All rights reserved. 33 1st quarter retail sales Detail of other markets 150 (thousand units) Asia & Oceania 34 M.East Africa Latin America xxxx All rights reserved. All rights reserved. 34

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