Nissan Motor Co., Ltd. · TSE:7201

Nissan Motor — Q1 FY2019 Earnings Presentation

16 slides from Nissan Motor's earnings presentation, Jul 25, 2019

  1. Slide 1: FY19 1Q Results

    Nissan Motor Co., Ltd. July 25th, 2019 FY19 1Q RESULTS BUSINESS TRANSFORMATION www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 2

  2. Slide 2: Sales and Profit

    SALES PROFIT RETAIL SALES VOLUME DECREASED 6.0% 1Q OPERATING PROFIT BUT OUTPERFORMED THE MARKET VARIANCE ANALYSIS WHICH DECREASED 6.8% (BILLION YEN) CHANGE 109.1 -42.3 (THOUSAND UNITS) FY18 1Q FY19 1Q vs FY18 VOLUME/MIX *: -72.4 TIV 24,135 22,498 -6.8% SELLING EXP.: +11.9 RETAIL 1,310 1,231 -6.0% SA

  3. Slide 3: Global Sales Performance and Key Markets

    GLOBAL TIV *1 RETAIL VOLUME M/S*2 5.4% vs. FY18 1,310 M/S*2 5.5% vs. FY18 24.13 1.19 22.50 GLOBAL -6.8% 1,231 GLOBAL -6.0% 130 1.23 JAPAN +2.8% 126 JAPAN -2.6% 6.79 336 5.98 CHINA -11.9% 344 CHINA +2.3% 5.45 NORTH -2.6% (4.50) 5.31 AMERICA (4.43) (-1.5%) 482 (U.S.) NORTH (365) 452 -6.3% (351) AMERIC

  4. Slide 4: Financial Results and Operating Profit Variance Analysis

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) (BILLION YEN) FY18 FY19 VARIANCE CHANGE 1Q 1Q vs. FY18 (%) NET REVENUE 2,716.6 2,372.4 -344.2 -12.7% OPERATING PROFIT 109.1 1.6 -107.5 -98.5% OP MARGIN 4.0% 0.1% NON-OPERATING 49.8 33.7 ORDINARY PROFIT 158.9 35.3 -123.6 -77.8% EXTRAORDINARY 1.5 -8.4 PROFIT

  5. Slide 5: Free Cash Flow (Auto Business)

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) FREE CASH FLOW (AUTO BUSINESS) (BILLION YEN) +75.6 -123.2 -252.3 -385.5 -154.9 -49.8 -132.0 -1.2 NET CASH AP / AR INVENTORY TAX / CASH FLOW CAPEX* OTHERS FREE INFLOW OTHER FROM CASH FROM P&L OPERATING OPERATING FLOW ITEMS ACTIVITIES ACTIVITIES * CAPEX DOES

  6. Slide 6: Recovery Plan Key Pillars

    RECOVERY PLAN KEY PILLARS 1. US BUSINESS RECOVERY 2. OPERATIONAL AND INVESTMENT EFFICIENCY IMPROVEMENT 3. STEADY GROWTH THROUGH NEW PRODUCTS, ADVANCED TECHNOLOGY AND “NISSAN INTELLIGENT MOBILITY” www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 11 TARGET 6% OP MARGIN BY

  7. Slide 7: Production Capacity Rationalization

    PRODUCTION CAPACITY RATIONALIZATION PRODUCTION CAPACITY (MAXIMUM OPERATION OF 5,000 HOURS/YEAR) OPERATING PRODUCTION RATIO CAPACITY (Million Units) 86% 100% 8.0 69% 7.0 50% 6.0 5.0 0.0 0% FY2018 FY2022 NOTE: PRODUCTION CAPACITY AND OPERATING RATIO DO NOT INCLUDE VEHICLES PRODUCED AT ALLIANCE PARTNER

  8. Slide 8: Product Line-up Rationalization

    PRODUCT LINE-UP RATIONALIZATION TERMINATE UNPROFITABLE PRODUCTS NUMBER OF MODELS Over 10% reduction FY2018 FY2022 www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 15 TARGET 6% OP MARGIN BY END OF FY22 MANAGEMENT PRO FORMA BASIS NET REVENUE 13.0 16.5→14.5 (Trillion Yen) T

  9. Slide 9: FY22 Net Revenue, Sales and Fixed Cost Outlook

    F Y 19 FY22 F Y 18 outlook reference N ET R EVE N U E 13T 13T 14.5T (J PY) G LO B A L SALE S 5.5M 5.5M 6.0M (units) FIXED  Total fixed cost stays flat COST  Increase investment to ensure future growth (Auto) including +10% R&D investment by the end of FY22  Cut cost where the return is not expect

  10. Slide 10: Progressing Towards the Future

    PROGRESSING TOWARDS THE FUTURE All New Cross-over EV (EV dedicated platform, long range, 4WD) Large Large High power 4WD Small Small Kei www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 19 PROGRESSING TOWARDS THE FUTURE Eyes-off on free way Driver assist system in Potent

  11. Slide 11: Nissan M.O.V.E. to 2022

    www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 21 FY19 FY22 FYxx NISSAN M.O.V.E. to 2022 Beyond… with New Nissan Transformation Net Revenue OP Margin 14.5T J PY 6% Solid Autonomous Drive Early Provider of Robo-Vehicle and EV Leadership Vehicle Expansion Ride-Hailing Se

  12. Slide 12: Appendix: Total Funding Amount

    Appendix (AS OF JUNE 2019) TOTAL FUNDING AMOUNT: 9,508 BILLION YEN Group Finance (Inter-Company) Equity 6.8% Commercial Paper 17.8% 5.4% S/T Loan 4.0% ABS Off B/S 2.6% L/T Loan 19.8% ABS On B/S 22.6% Bonds 21.0% www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 24

  13. Slide 13: Net Credit Loss Ratio

    (%) NFS NMAC NCF NRFM 100 90 80 70 60 37% 38% 50 31% 33% 3% 40 3% 30 4% 4% 20 45% 35% 39% 39% 31% 26% 29% 27% 10 0 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 1Q 1Q 1Q 1Q 1Q 1Q 1Q 1Q LEASE NFS: NISSAN FINANCIAL SERVICES, SALES FINANCE COMPANY IN JAPAN RETAIL NMAC: NISSAN MOTOR ACCEPTANCE CORPORATION, SA

  14. Slide 14: Operating Profit & Asset

    OPERATING PROFIT & ASSET (NFS : billion yen, NMAC : million USD, NCF : million CAD, NRFM : million Peso) FY18 FY19 VARIANCE 1Q 1Q Asset: 1,368.5 Asset: 1,434.2 Asset: +65.7 NFS OP: 9.4 OP: 10.1 OP: +0.7 Asset: 62,025 Asset: 59,979 Asset: -2,046 NMAC OP: 282 OP: 228 OP: -54 Asset: 8,015 Asset: 8,656

  15. Slide 15: Inventory Status and Net Cash

    (EXCLUDING CHINA JV) INVENTORY STATUS (THOUSAND UNITS) (THOUSAND UNITS) 1,000 1,000 800 910 920 860 870 850 860 850 810 790 830 800 600 600 400 400 200 200 0 0 2015 2016 2018 Jun. Sep. Dec. 2019 Mar. Jun. Jun. Sep. Dec. Mar. Jun. DEALER INVENTORY, EXCEPT SOME MINOR COUNTRIES CONSOLIDATED NISSANEXCEP

  16. Slide 16: Other Markets

    OTHER MARKETS Sales: 174 k units, -13.1% RETAIL VOLUME  Asia & Oceania: 72 k units, -6.4% (TIV: -8.1%) (THOUSAND UNITS) 200 -13.1% 174  Latin America: 50 k units, -9.9% (TIV: -6.3%)  Middle East: 32 k units, -25.8% (TIV: -18.8%)  Africa & others: 21 k units, -18.4% (TIV: -33.4%) FY18 FY19 1Q 1Q

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