Nissan Motor Co., Ltd. · TSE:7201

Nissan Motor — H1 FY2017 Earnings Presentation

18 slides from Nissan Motor's earnings presentation, Nov 8, 2017

  1. Slide 1: Nissan Motor Co., Ltd. FY17 1st Half Financial Results

    Nissan Motor Co., Ltd. November 8th, 2017 1. FY17 1ST HALF FINANCIAL RESULTS FY17 1ST HALF SALES PERFORMANCE FY17 1ST HALF FINANCIAL PERFORMANCE 2. MIDTERM PLAN www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 2

  2. Slide 2: FY17 1st Half Results Summary and Global Sales

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) (BILLION YEN) NET OPERATING NET FREE NET CASH REVENUE PROFIT INCOME * CASH FLOW (AUTO) (AUTO) 1,760.0 5,652.5 5,321.0 1,300.3 339.7 364.1 281.8 282.4 276.5 239.7 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H * NET INCOME AT

  3. Slide 3: Japan and China Sales Performance

    JAPAN TIV: 2.48 million units, +7.7% RETAIL VOLUME Sales: 283 k units, +34.1% +34.1% 283 (THOUSAND UNITS) 211 Market share: 11.4%, +2.2 points Registered car  TIV: 1.61 million units, +4.0%  Sales: 193 k units, +17.1% FY16 FY17 1H 1H  Market share: 12.0%, +1.4 points Mini car MARKET SHARE  TIV:

  4. Slide 4: North America and Europe Sales Performance

    NORTH AMERICA US US RETAIL VOLUME  TIV: 8.84 million units, -2.1% 783 -0.4% 779  Sales: 779 k units, -0.4% (THOUSAND UNITS)  Market share: 8.8%, +0.1 points FY16 1H US MARKET SHARE Rogue Rogue Sport +0.1 points Canada 8.7 8.8  Sales: 81 k units, +8.6%  Market share: 6.9%, +0.2 points (%) Mexico

  5. Slide 5: Other Markets

    OTHER MARKETS Sales: 390 k units, +2.3% RETAIL VOLUME  Asia & Oceania: 165 k units, -2.0% (TIV: +4.1%) 382 +2.3% 390 (THOUSAND UNITS)  Latin America: 94 k units, +12.2% (TIV: +12.6%)  Middle East: 86 k units, -4.8% (TIV: -10.3%)  Africa & others: 46 k units, +15.6% (TIV: -1.4%) FY16 1H Datsun re

  6. Slide 6: Financial Performance: Income Statement

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) (BILLION YEN) FY16 FY16 FY17 VARIANCE CHANGE 1H 1H 1H vs. FY16 (%) *excl. CK *3 *excl. CK *3 *excl. CK *3 NET REVENUE 5,321.0 5,230.5 5,652.5 +422.0 +8.1% OPERATING PROFIT 339.7 324.8 281.8 -43.0 -13.2% OP MARGIN 6.4% 6.2% 5.0% NON-OPERATING 57.1 57.1 87.7

  7. Slide 7: Operating Profit Variance and Free Cash Flow

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) PLUS +14.2 (+9.2%) +31.4 -27.5 -8.8 +23.4 -40.8 -13.5 -45.2 +48.6 -3.0 FY16 CK *1 FY16 FOREX RAW VOLUME MARKETING COST *2 R&D OTHER FY17 SPECIAL*3 FY17 SCOPE MATERIAL /MIX & ITEMS /MFG ITEMS ITEMS 2Q CHANGE 2

  8. Slide 8: Inventory and Net Cash

    (EXCLUDING CHINA JV) (THOUSAND UNITS) 1,000 940 970 930 890 800 870 600 400 200 0 2016 2017 Sep. Dec. Mar. Jun. Sep. DEALER INVENTORY, EXCEPT SOME MINOR COUNTRIES CONSOLIDATED NISSAN INVENTORY, EXCEPT SOME MINOR COUNTRIES www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved.

  9. Slide 9: Financial Results Pro Forma and Revised Guidance

    FINANCIAL RESULTS (MANAGEMENT PRO FORMA BASIS *1) (BILLION YEN) NET OPERATING NET FREE NET CASH REVENUE PROFIT INCOME *2 CASH FLOW (AUTO) (AUTO) 1,958.8 6,222.9 5,837.1 1,456.5 412.0 408.1 351.1 282.4 276.5 273.7 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H *1: BAS

  10. Slide 10: Dividend Per Share

    +10.4% 53 48 42 2H 26.5 33 30 25 20 DIVIDEND PER SHARE (YEN) 1H 26.5 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (Forecast) www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 19 1. FY17 1ST HALF FINANCIAL RESULTS FY17 1ST HALF SALES PERFORMANCE FY17 1ST HALF FINANCIAL PERFORMANCE 2

  11. Slide 11: Midterm Plan Objectives

    Achieve sustainable growth, while delivering healthy 1 profitability and strong free cash flow Lead the technology and business evolution of the 2 automotive industry, backed by our technology DNA www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 21 M.O.V.E. M O V E www.n

  12. Slide 12: Sustainable Growth and Lead the Evolution

    Sustainable Growth Net Revenue Sustainable Cumulative Auto Growth COP% Free Cash Flow 12.8T 16.5T J PY 8% 2.5T J PY Under “reasonable” Over 6-Year Period economic conditions Steady Growth with Harvest Capture Full Potential Above Average Profitability Previous Investment in markets & segments US, Ch

  13. Slide 13: Appendix: Funding Structure

    Appendix (AS OF SEPTEMBER 2017) TOTAL FUNDING AMOUNT: 10,058 BILLION YEN Equity Group Finance 11.0% (Inter-Company) 13.9% ABS Off B/S 1.2% Commercial Paper 5.0% S/T Loan ABS On B/S 4.3% 24.0% L/T Loan 21.6% Bonds 19.0% www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 26

  14. Slide 14: Net Credit Loss Ratio

    (%) NFS NMAC NCF NRFM 100 90 80 70 60 33% 50 30% 34% 30% 40 6% 30 4% 49% 47% 20 42% 31% 29% 36% 33% 35% 10 0 FY16 FY17 FY16 FY17 FY16 FY17 FY16 FY17 1H 1H 1H 1H 1H 1H 1H 1H LEASE NFS: NISSAN FINANCIAL SERVICES, SALES FINANCE COMPANY IN JAPAN RETAIL NMAC: NISSAN MOTOR ACCEPTANCE CORPORATION, SALES FI

  15. Slide 15: Sales Finance Operating Profit and Assets

    OPERATING PROFIT & ASSET (NFS : billion yen, NMAC : million USD, NCF : million CAD, NRFM : million Peso) FY16 FY17 VARIANCE 1H 1H Asset: 1,124.6 Asset: 1,322.6 Asset: +198.0 NFS OP: 15.1 OP: 16.2 OP: +1.1 Asset: 61,978 Asset: 65,890 Asset: +3,912 NMAC OP: 442 OP: 449 OP: +7 Asset: 6,398 Asset: 7,332

  16. Slide 16: Second Quarter Sales and Financial Results

    GLOBAL TIV *1 RETAIL VOLUME M/S*2 6.2% vs. FY16 M/S*2 6.1% vs. FY16 1,383 GLOBAL +4.2% 1,326 21.91 22.34 GLOBAL +2.0% 152 JAPAN +25.6% 1.28 JAPAN +4.0% 121 1.23 5.96 CHINA -1.2% 311 336 CHINA +8.0% 6.01 NORTH -0.9% 5.39 5.34 AMERICA NORTH (4.42) (U.S.) (-1.1%) 502 AMERICA -3.3% (4.47) 519 (385) (377

  17. Slide 17: Second Quarter Variance Analysis and Free Cash Flow

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) FOREIGN EXCHANGE VOLUME SELLING IMPACT /MIX EXPENSES +31.4 -13.5 -45.2 USD +27.1 (102.4⇒ 111.0) JPN +14.4 VOL*: +23.5 JPN -2.2 INCENTIVES: -1.3 MIX: -9.1 OTHERS: -0.9 CAD +9.5 (78.5 ⇒ 88.5) US -37.8 VOL*: -35

  18. Slide 18: Net Cash by Automobile and Sales Financing

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) AS OF MARCH 31, 2017 AS OF SEPTEMBER 30, 2017 (BILLION YEN) AUTOMOBILE AUTOMOBILE SALES SALES & TOTAL & TOTAL FINANCING FINANCING ELIMINATIONS ELIMINATIONS BORROWINGS FROM 861.9 6,905.8 7,767.7 786.5 7,423.6 8,210.1 THIRD PARTIES INTERNAL LOAN TO SALES -1,3

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