FY2016 First-quarter Financial Results Nissan Motor Co., Ltd July 27, 2016 Key performance indicators: financial results (TSE report basis - China JV Equity basis) Operating profit Net income * Free cash flow (Auto) Net cash (Auto) 2,899.4 2,654.5 1,447.1 1,365.1 193.7 175.8 152.8 136.4 229.4 109.5 * Net income attributable to owners of the parent 2
Reference: Business performance simulation TSE report basis Constant currency basis Operating profit Operating profit 2,899.4 2,654.5 2,899.4 2,991.2 267.0 193.7 175.8 193.7 3 1st quarter sales performance 1st quarter financial performance outlook 4
1st quarter sales performance: Global 22.02 1.10 TIV *1 22.79 1.08 vs. Global +3.5% Japan -1.9% Retail volume *2 M/S 5.9% M/S 5.6% 1,294 *2 1,287 120 90 vs. Global -0.6% Japan -25.4% 5.94 6.30 China +6.0% 296 299 China +0.8% (million units) 5.44 (4.57) 4.72 5.52 (4.56) 5.18 North America (US) Europe +1.5% (-0.2%) +9.5% 486 (369) 529 (398) North America (US) +8.9% (+7.9%) 189 183 Europe -2.9% 4.82 4.71 Others -2.1% 203 186 Others -8.6% *1: Nissan s estimation *2: Market Share 5 1st quarter sales performance: Japan Retail volume -25.4% 120 90 TIV: 1.08 million units, -1.9% Sales: 90 k units, -25.4% Market share: 8.3%, -2.7 points X-Trail: 10.8 k units Market share -2.7 points X-Trail Nissan LEAF (%) 11.0 8.3 6
1st quarter sales performance: China Retail volume +0.8% Market share *1 296 299 (Jan. to Mar.) *2 TIV : 6.30 million units, +6.0% Sales : 299 k units, +0.8% Market share: 4.7%, -0.3 points Sylphy series: 65.0 k units 2Q (Apr. to Jun.) *2 *1 TIV : 6.01 million units, +10.1% Sales *1 : 311 k units, +6.7% Market share: 5.2%, -0.1 points -0.3 points X-Trail Sylphy (%) 5.0 4.7 * 1: PV: Retail sales base, LCV: Wholesale base * 2: PV and LCV only 7 sales performance: China (6 months) PV volume *1 *2 Retail volume *1 +3.8% 610 588 493 1H +6.6% 526 1H 1H 1H LCV volume -11.2% *1 95 84 * 1: PV: Retail sales base, LCV: Wholesale base * 2: PV: DFL PV + Infiniti 1H 1H 8
1st quarter sales performance: North America US Retail volume 369 +7.9% +0.6 points 398 US Market share US TIV: 4.56 million units, -0.2% Sales: 398 k units, +7.9% Market share: 8.7%, +0.6 points Canada Sales: 39 k units, +7.1% Market share: 6.7%, +0.2 points Mexico Sales: 91 k units, +14.6% Market share: 24.4%, -1.9 points (%) 8.1 8.7 Altima Rogue 9 1st quarter sales performance: Europe Retail volume 189-2.9% Market share 183 Europe excluding Russia TIV: 4.82 million units, +11.5% Sales: 162 k units, +4.7% Market share: 3.4%, -0.2 points Russia TIV: 0.35 million units, -11.4% Sales: 21 k units, -38.2% Market share: 5.9%, -2.6 points -0.4 points Navara Infiniti Q30 (%) 4.0 3.6 10
1st quarter sales performance: Other markets Retail volume -8.6% 203 186 Sales: 186 k units, -8.6% Asia & Oceania: 84 k units, -3.7% (TIV: +6.6%) Latin America: 38 k units, -8.5% (TIV: -12.0%) Middle East: 44 k units, -11.4%(TIV: -8.8%) Africa & others: 20 k units, -20.3%(TIV: -10.4%) NP300 Navara Datsun redi-go 11 1st quarter sales performance 1st quarter financial performance outlook 12
1st quarter financial performance (TSE report basis - China JV Equity basis) Operating profit OP margin 6.7% 6.6% Non-operating 22.2 22.4 Ordinary profit Extraordinary Profit before tax Net income FX rate 175.8 198.2-17.7-0.3 Taxes -58.1-54.4 Effective tax rate 27.1% 27.5% *1 Minority interest -3.1-7.1 *2 2,899.4 193.7 215.9-1.9 214.0 152.8 121.4 JPY/USD 134.2 JPY/EUR Variance 2,654.5-244.9 197.9-16.1 136.4 108.0 JPY/USD 121.9 JPY/EUR -17.9-16.4-13.4 JPY/USD -12.3 JPY/EUR Change vs. (%) -8.4% -9.2% -8.2% -7.5% -10.7% *1: Net income attributable to non-controlling interests *2: Net income attributable to owners of the parent 13 1st quarter financial performance (TSE report basis - China JV Equity basis) Operating profit variance analysis +73.3 (+37.8%) +72.9 +7.2 +14.8 267.0 193.7 +19.4-6.3 175.8-34.7-91.2 OP Volume / mix Marketing & Selling exp. Cost items * R&D exp. MFG exp. Other FOREX items OP (constant currency basis) OP * Including purch. cost reduction, raw material and product enrichment 14
1st quarter financial performance (TSE report basis - China JV Equity basis) Free cash flow (Auto business) +265.6 +39.9 359.3 +162.2-108.4-118.0-11.9 229.4 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 15 Inventory management (excluding China JV) Inventory status 1,000 800 850 810 860 790 870 600 400 200 0 2015 Jun. Sep. Dec. Dealer inventory, except some minor countries Consolidated Nissan inventory, except some minor countries 2016 Mar. Jun. 16
Net Cash (Auto business) (TSE report basis - China JV Equity basis ) 2015 2016 1,500 1,390.1 1,447.1 1,500 1,502.9 1,365.1 1,200 1,200 900 900 600 600 300 300 0 FX: JPY/USD End of month Mar. 120.2 Jun. 122.5 0 FX: JPY/USD End of month Mar. 112.7 Jun. 102.9 17 Key performance indicators: financial results *1 (management pro forma basis ) Operating profit Net income *2 Free cash flow (Auto) Net cash (Auto) 3,122.7 2,893.5 219.7 209.0 231.0 1,602.2 1,501.1 152.8 136.4 130.4 *1: Based on continuation of proportionate consolidation of China JV *2: Net income attributable to owners of the parent 18
1st quarter financial performance *1 (management pro forma basis ) Variance Change vs. (%) 3,122.7 2,893.5-229.2-7.3% Operating profit 219.7 209.0-10.7-4.9% OP margin 7.0% 7.2% +0.2% *2 Net income 152.8 136.4-16.4-10.7% FX rate 121.4 JPY/USD 134.2 JPY/EUR 108.0 JPY/USD 121.9 JPY/EUR -13.4 JPY/USD -12.3 JPY/EUR *1: Based on continuation of proportionate consolidation of China JV *2: Net income attributable to owners of the parent 19 Reference: Business performance simulation Management pro forma basis * Constant currency basis Operating profit Operating profit 3,122.7 2,893.5 219.7 209.0 3,122.7 3,257.3 219.7 304.1 * Based on continuation of proportionate consolidation of China JV 20
1st quarter sales performance 1st quarter financial performance outlook 21 outlook (TSE report basis - China JV Equity basis) actual 12,189.5 outlook 11,800.0 Previously announced in May Variance -389.5 Change vs. (%) -3.2% Operating profit 793.3 710.0-83.3-10.5% OP margin Ordinary profit 6.5% 862.3 6.0% 800.0-0.5% -62.3-7.2% Net income * Net income ratio * 523.8 4.3% 525.0 4.4% +1.2 +0.1% +0.2% CAPEX R&D Sales ratio Sales ratio 479.0 3.9% 531.9 4.4% 540.0 4.6% 560.0 4.7% +61.0 +0.7% +28.1 +0.3% +12.7% +5.3% FX rate assumptions (JPY/USD) (JPY/EUR) 120.2 132.6 105.0 120.0-15.2-12.6 * Net income attributable to owners of the parent 22
shareholder return outlook Previously announced in May Minimum payout ratio of 30% Announced share buyback program on February 26, 2016 (300 million shares up to 400 billion yen during 2016) 42 14.3% 48 dividend per share (yen) 20 25 30 33 FY11 FY12 FY13 FY14 (Forecast) 23 24
Appendix Sales financing: funding sources (As of June 2016) Equity 10.9% ABS Off B/S 2.3% ABS On B/S 24.7% Group Finance (Inter-Company) 18.9% Commercial paper 4.2% S/T Loan 3.7% Bonds 11.1% L/T Loan 24.2% Total funding amount 8,251billion yen 26
Sales financing: penetration (%) 100% 100 90% 90 80% 80 70% 70 60% 60 50% 50 40% 40 30% 30 20% 20 10% 10 0% 0 NFS NMAC NCF NRFM 6% 6% 25% 28% 32% 47% 31% 34% 34% 33% 35% 39% 44% 48% Lease Retail 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 27 Sales financing: net credit loss ratio Variance NFS 0.04% 0.11% 0.02% 0.11% -0.02% 0.00% NMAC 0.25% 0.71% 0.27% 0.88% +0.02% +0.17% NCF 0.20% 0.41% 0.10% 0.36% -0.10% -0.05% 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 28
Sales financing: operating profit & asset NFS (NFS : billion yen, NMAC : million USD, NCF : million CAD, NRFM : million Peso) 1,131.6 7.2 1,086.0 7.3 Variance -45.6 +0.1 NMAC 55,930 237 61,729 242 +5,799 +5 NCF 5,082 33 6,090 41 +1,008 +8 NRFM 76,807 749 94,419 825 +17,612 +76 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 29 1st quarter financial performance (TSE report basis - China JV Equity basis) Operating profit variance analysis 1. Foreign exchange impact USD MXN -17.0 CAD 2. Volume / mix 3. Selling expenses (7.93 5.96) -91.2-34.0 (121.4 108.0) THB +7.1-15.1 (98.6 83.7) Japan +8.3 US +10.6 Vol*: Mix: Japan +2.4 Incentives: Others: +5.9 +2.4 * Includes country mix +2.0 +0.4 Vol*: Mix: +34.6-24.0 US -40.5 Incentives: Others: -36.9-3.6 EUR +14.8 Vol*: Mix: +15.2-0.4 EUR -9.6 Incentives: Others: RUB -6.7 Others -25.5-8.9-0.7 +19.4-34.7 (3.66 3.06) MEX&CAN Others MEX&CAN Others (2.30 1.64) -0.4-13.9 +9.6 +3.4 30