FY2015 third-quarter financial results

FY2015 third-quarter financial results Nissan Motor Co., Ltd February 10, 2016 Key performance indicators (9 months) (TSE report basis - China JV Equity basis) Net revenue Operating profit Net income* Free cash flow (Auto) Net cash (Auto) 8,088.5 8,943.0 417.9 587.5 338.8 452.8 155.7 245.6 1,177.4 1,399.5 * Net income attributable to owners of the parent All rights reserved. 2

business update Technology Zero-emission leadership Nissan LEAF Cumulative global sales reached 200 k units EV sales Enhanced-range Nissan LEAF launched in Japan (Driving range) 228 km +23% 280 km 24 kwh 30 kwh All rights reserved. 9 business update Technology The Alliance will launch more than 10 vehicles with autonomous drive technology through 2020 Nissan IDS concept All rights reserved. 10

business update Technology All-new 3.0-liter V6 twin-turbo engine All rights reserved. 11 business update Alliance 8.5 million unit sales in CY2015 Nissan sales: 5.4 million units (CY14: 5.3 million units) All rights reserved. 12

business update sales performance (9 months) consolidated financial performance (9 months) All rights reserved. 13 sales performance (9 months): Global TIV *1 Retail volume 63.42 3.72 64.28 3.47 vs. Global +1.4% Japan -6.7% M/S M/S 6.0% 6.1% 3,835 3,891 417 383 vs. Global +1.4% Japan -8.2% 16.12 16.40 China +1.7% 879 *3 859 *4 China +1.8% *5 (million units) 15.16 (12.78) 13.18 16.10 (13.52) 13.51 North America (US) Europe +6.2% (+5.8%) +2.5% (thousand units) 1,354 (1,032) 1,490 (1,117) North America (US) +10.1% (+8.3%) 534 540 Europe +1.1% 15.24 14.80-2.8% 651 619-4.9% *1: Nissan s estimation : Market Share *4: PV: Retail sales base, LCV: Wholesale base *3: Wholesale base *5: After adjustment for PV in 2014 to retail base All rights reserved. 14

sales performance (9 months): Japan (thousand units) Retail volume 417-8.2% Market share -0.2 points 383 TIV: 3.47 million units, -6.7% Sales: 383 k units, -8.2% Market share: 11.0%, -0.2 points X-Trail: 41.2 k units DAYZ / DAYZ ROOX: 91.5 k units X-Trail DAYZ ROOX (%) 11.2 11.0 All rights reserved. 15 sales performance (9 months): China (thousand units) Retail volume 844 +1.8% Market share *1 859 (Jan. to Sep.) *3 TIV : 16.40 million units, +1.7% Sales: 859 k units, +1.8% Market share: 5.2%, 0.0 points Sylphy series: 230.6 k units YTD (Jan. to Dec.) *3 TIV : 23.68 million units, +6.0% Sales: 1,250 k units, +6.3% Market share: 5.3%, 0.0 points 0.0 points X-Trail Sylphy (%) 5.2 5.2 * 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. 16

sales performance (9 months): North America (thousand units) (%) US Retail volume 1,032 +8.3% +0.2 points 1,117 US Market share 8.1 8.3 US TIV: 13.52 million units, +5.8% Sales: 1,117 k units, +8.3% Market share: 8.3%, +0.2 points Canada Sales: 104 k units, +13.0 % Market share: 6.8 %, +0.6 points Mexico Sales: 267 k units, +16.9% Market share: 25.6%, No.1 brand for 79 consecutive months Altima Rogue All rights reserved. 17 sales performance (9 months): Europe (thousand units) Retail volume 534 +1.1% Market share 540 Europe excluding Russia TIV: 12.29 million units, +8.7% Sales: 450 k units, +12.5% Market share: 3.7%, +0.1 points Russia TIV: 1.22 million units, -35.2% Sales: 90 k units, -32.7% Market share: 7.4%, +0.3 points (%) -0.1 points * Qashqai Nissan LEAF 4.1 4.0 * Market share decreased due to country mix, though both market share for Europe excl. Russia and Russia increased All rights reserved. 18

sales performance (9 months): Other markets Estimated TIV: 14.80 million units, -2.8 % (thousand units) Retail volume -4.9% 651 619 Sales: 619 k units, -4.9% Asia & Oceania: 263 k units, -1.5% M/S Latin America: 130 k units, -7.9% M/S Middle East: 151 k units, -10.5% M/S Africa: 75 k units, +1.3% M/S * * * * * Market Share NP300 Navara Datsun GO+ Panca All rights reserved. 19 business update sales performance (9 months) consolidated financial performance (9 months) All rights reserved. 20

financial performance (9 months) (TSE report basis - China JV Equity basis) Net revenue Operating profit Non-operating Ordinary profit Extraordinary 631.0 +134.6-17.8 Variance Profit before tax 490.4 613.2 +122.8 Taxes -132.3-141.6 Net income FX rate 8,943.0 +854.5 587.5 OP margin 5.2% 6.6% 43.5 Effective tax rate 27.0% 23.1% *1 Minority interest -19.3-18.8 8,088.5 417.9 78.5 496.4-6.0 338.8 106.7 JPY/USD 140.2 JPY/EUR 452.8 121.7 JPY/USD 134.4 JPY/EUR +169.6 +114.0 +15.0 JPY/USD -5.8 JPY/EUR Change vs. (%) +10.6% +40.6% +27.1% +25.0% +33.7% *1: Net income attributable to non-controlling interests : Net income attributable to owners of the parent All rights reserved. 21 financial performance (9 months) (TSE report basis - China JV Equity basis) Operating profit variance analysis +131.0 417.9 +19.8 +142.3-88.1-2.7-10.2-22.5 587.5 3Q O.P. FOREX Cost items * Volume / mix Marketing & Selling exp. R&D exp. * Including purch. cost reduction, raw material and product enrichment MFG exp. Other items O.P. 156.0-26.8 +53.7 +5.8-13.1 +8.1-3.5 +12.4 192.6 All rights reserved. 22

financial performance (9 months) (TSE report basis - China JV Equity basis) Free cash flow (Auto business) +119.6 +790.8-175.2 562.8-172.4 +4.3 245.6-321.5 Net cash inflow from P&L items AP / AR Inventory Tax / other operating activities Cash flow from operating activities CAPEX* Free cash flow * CAPEX does not include finance lease-related investments All rights reserved. 23 Inventory management (excluding China JV) Inventory status 1,000 800 860 810 850 810 860 (thousand units) 600 400 200 0 2014 Dec. Dealer inventory, except some minor countries Consolidated Nissan inventory, except some minor countries 2015 Mar. Jun. Sep. Dec. All rights reserved. 24

Net Cash (Auto business) (TSE report basis - China JV Equity basis ) 2014 2015 1,500 1,500 1,390.1 1,447.1 1,473.6 1,399.5 1,200 900 1,015.9 916.3 1,128.3 1,177.4 1,200 900 600 600 300 300 0 FX: JPY/USD End of month Mar. Jun. Sep. Dec. 102.9 101.4 0 Mar. Jun. Sep. Dec. FX: JPY/USD End of month 120.2 120.0 109.5 120.6 122.5 120.6 All rights reserved. 25 Key performance indicators (9 months) *1 (management pro forma basis ) Net revenue Operating profit Net income Free cash flow (Auto) Net cash (Auto) 8,790.5 9,716.9 682.6 1,321.3 1,590.1 516.8 338.8 452.8 307.6 162.5 *1: Based on continuation of proportionate consolidation of China JV : Net income attributable to owners of the parent All rights reserved. 26

financial performance (9 months) *1 (management pro forma basis ) Variance Change vs. (%) Net revenue 8,790.5 9,716.9 +926.4 +10.5% Operating profit 516.8 682.6 +165.8 +32.1% OP margin 5.9% 7.0% +1.1% Net income 338.8 452.8 +114.0 +33.7% FX rate 106.7 JPY/USD 140.2 JPY/EUR 121.7 JPY/USD 134.4 JPY/EUR +15.0 JPY/USD -5.8 JPY/EUR *1: Based on continuation of proportionate consolidation of China JV : Net income attributable to owners of the parent All rights reserved. 27 shareholder return outlook dividend per share (yen) 20 25 30 +27% 33 42 2H 21 1H 21 FY11 FY12 FY13 (Forecast) All rights reserved. 28

Sales financing: Funding sources (As of end of December 2015) ABS Off B/S 2.1% Equity 10.4% Group Finance (Inter-Company) 18.6% ABS On B/S 28.0% Commercial paper 3.8% S/T Loan 3.3% Bonds 10.2% L/T Loan 23.6% Total funding amount 9,183 billion yen All rights reserved. 31 Sales financing: penetration (%) 100 90 80 70 60 50 40 30 20 10 0 7% 6% 29% 29% NFS NMAC NCF NRFM 25% 27% 29% 31% 41% 42% 40% 39% 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 48% 47% Lease Retail All rights reserved. 32

Sales financing: net credit loss ratio Variance NFS Lease: 0.04% Retail: 0.12% Lease: 0.03% Retail: 0.11% Lease: -0.01% Retail: -0.01% NMAC Lease: 0.24% Retail: 0.80% Lease: 0.31% Retail: 0.89% Lease: +0.07% Retail: +0.09% NCF Lease: 0.18% Retail: 0.41% Lease: 0.17% Retail: 0.39% Lease: -0.01% Retail: -0.02% 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. 33 Sales financing: operating profit & asset NFS (NFS : billion yen, NMAC : million USD, NCF : million CAD, NRFM : million Peso) Asset: 1,167.1 OP: 19.0 Asset: OP: 1,076.3 20.3 Asset: OP: Variance -90.8 +1.3 NMAC Asset: 52,732 OP: 718 Asset: OP: 60,841 760 Asset: OP: +8,109 +42 NCF Asset: 4,603 OP: 84 Asset: OP: 5,565 107 Asset: OP: +962 +23 NRFM Asset: 66,612 OP: 1,726 Asset: OP: 81,903 2,462 Asset: OP: +15,291 +736 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. 34

financial performance (9 months) (TSE report basis - China JV Equity basis) Operating profit variance analysis 1. Foreign exchange impact USD MXN RUB +132.8-34.1-21.0 (106.7 121.7) (8.01 7.55) (2.75 2.03) CNY THB +19.8-14.8-11.0-32.1 (16.71 19.33) (3.29 3.51) 2. Volume / mix Japan -9.6 Vol* : Mix : -11.0 +1.4 * Includes country mix 3. Selling expenses Japan +0.2 Incentives : : -0.6 +0.8 US +101.6 Vol* : Mix : +71.6 +30.0 US -87.6 Incentives : : -80.3-7.3 EUR +22.7 Vol* : Mix : +25.0-2.3 EUR -13.9 Incentives : : +131.0-16.3 +2.4 MEX&CAN -88.1 MEX&CAN +35.1-18.8-0.7 +13.9 All rights reserved. 35 3rd quarter sales performance: Global (3 months) TIV *1 Retail volume vs. Global +1.7% Japan -8.5% M/S 6.0% 20.73 21.08 1,254 1.24 1.14 126 M/S 1,275 118 6.0% vs. Global +1.7% Japan -6.5% 5.07 4.99 China -1.5% 259 *3 *4 *5 271 China -5.7% (million units) 4.86 (4.09) 4.36 5.26 (4.42) 4.44 North America (US) Europe +8.2% (+8.0%) +1.8% (thousand units) 441 (324) 200 495 (362) 173 North America (US) Europe +12.2% (+12.0%) -13.6% 5.20 5.25 +1.0% 228 218-4.2% 3Q *1: Nissan s estimation 3Q 3Q : Market Share *3: Wholesale base 3Q *4: PV: Retail sales base, LCV: Wholesale base *5: After adjustment for PV in 2014 to retail base All rights reserved. 36

3rd quarter financial performance (TSE report basis - China JV Equity basis) Net revenue 3Q 2,943.9 3Q 3,009.8 Variance +65.9 (3 months) Change vs. (%) +2.2% Operating profit OP margin Non-operating 156.0 5.3% 12.2 192.6 6.4% 10.7 +36.6 +23.5% Ordinary profit Extraordinary 168.2-2.1 203.3-4.5 +35.1 +20.9% Profit before tax Taxes 166.1-55.5 198.8-61.5 +32.7 +19.7% Effective tax rate Minority interest *1 33.4% -8.8 31.0% -10.1 Net income FX rate 101.8 114.4JPY/USD 142.9JPY/EUR 127.2 121.5JPY/USD 133.0JPY/EUR +25.4 +7.1JPY/USD -9.9JPY/EUR +25.0% *1 Net income attributable to non-controlling interests Net income attributable to owners of the parent All rights reserved. 37 3rd quarter financial performance (3 months) (TSE report basis - China JV Equity basis) Operating profit variance analysis +53.7 +5.8 +8.1 +12.4 192.6 156.0-13.1-3.5-26.8 3Q O.P. FOREX Cost items * Volume / mix Marketing & Selling exp. R&D exp. MFG exp. * Including purch. cost reduction, raw material and product enrichment Other items 3Q O.P. All rights reserved. 38

3rd quarter financial performance (TSE report basis - China JV Equity basis) Operating profit variance analysis 1. Foreign exchange impact USD MXN CNY +22.0-17.1-8.0 (114.4 121.5) (8.25 7.25) (16.84 19.33) CAD AUD -26.8-6.5-4.5-12.7 (100.6 91.0) (97.76 87.42) (3 months) 2. Volume / mix +5.8 Japan +2.5 Vol* : Mix : +3.6-1.1 US +15.0 Vol*: Mix : +25.1-10.1 EUR -10.5 Vol* : Mix : -11.5 +1.0 MEX&CAN +9.7-10.9 * Includes country mix 3. Selling expenses -13.1 Japan +2.4 Incentives : : +1.3 +1.1 US -24.8 Incentives : : -21.1-3.7 EUR +3.3 Incentives : +3.3 : 0 MEX&CAN +2.6 +3.4 All rights reserved. 39 3rd quarter financial performance (TSE report basis - China JV Equity basis) Free cash flow (Auto business) +74.2 (3 months) +259.9-77.0 +148.3-106.0-108.8-9.8 +32.5 Net cash inflow from P&L items AP / AR Inventory Tax / other Cash flow operating from activities operating activities CAPEX* Free cash flow * CAPEX does not include finance lease-related investments All rights reserved. 40

retail sales (9 months) Detail of other markets 300 266.6 262.7 250 (thousand units) 200 150 100 141.6 130.4 168.6 150.9 74.6 75.6 50 0 Asia & Oceania Latin America Middle East Africa All rights reserved. 41 3rd quarter retail sales (3 months) Detail of other markets 150 3Q 3Q 120 (thousand units) 90 60 30 86.6 94.3 53.5 58.4 44.5 53.8 29.8 26.1 0 Asia & Oceania Latin America Middle East Africa All rights reserved. 42