Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — Nomura Investment Forum 2012
35 slides from Nissan Motor's conference presentation, Dec 6, 2012
Slide 1: Nissan's Global Strategy
Nissan’s Global Strategy Nomura Investment Forum Toshiyuki Shiga Chief Operating Officer December 6, 2012 www.nissan-global.com www.nissan-global.com
Slide 2: Agenda
1 Changes Surrounding Auto Industry 2 Nissan’s Global Growth Strategy Talent Management to Support Strategy 3 Implementation Nissan Risk Management to Support 4 Growth Strategy 2 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 3: Environment Surrounding Global Auto Industry
Environment Surrounding Global Auto Industry Major 3 + 1 changes 1.Expanding 1.Expanding Emerging Emerging Countries Countries 2.Various 2.Various Environmental Environmental Technologies Technologies 3.Downsizing 3.Downsizing /Lower /Lower Prices Prices ④ ④ IT ITchanges changesto + automobile to
Slide 4: Expanding Emerging Countries
1.Expanding Emerging Countries Transition in global total industry volumes: Clear expansion of emerging markets (million units) 100.0 90.0 80.0 76 40% 70.0 60.0 54 日米欧 Japan/US/Euro 50.0 Others 41 その他 40.0 30.0 60% 20.0 11 40% 10.0 27 0.0 5 BRIC '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '1
Slide 5: Potential future based on vehicle ownership per 1,000 people
Potential future based on vehicle ownership per 1,000 people US 800 France 600 Japan 米国 Russia ドイツ 250 中国 Brazil 160 China 50 Opportunity for further expansion in Indonesia 40 China and India, as populations are larger with fewer vehicles owned. India 15 0 200 400 600 800 1,000 (unit) Source: JAMA “
Slide 6: Dealing with Various Environmental Technologies
2.Dealing with Various Environmental Technologies EV Zero-emission World FCV Plug-in HEV HEV Diesel ICE/ Improved Downsizing fuel economy Japan: HEV/Fuel-efficient gasoline engine/CVT Europe: Diesel/Downsizing/DCT transmission US: High-output fuel-efficient gasoline engine/HEV China: Fuel-efficient
Slide 7: Global Trend of Downsizing and Lower Prices
3.Global Trend of Downsizing and Lower Prices Structure of new car demand Replacement Replacement First First Purchase Purchase Specific Specificand andunique uniqueproduct productspecifications specificationsand andservices services for forcustomers customersin inemerging emergingmarkets markets 7
Slide 8: Agenda
1 Changes Surrounding Auto Industry 2 Nissan’s Global Growth Strategy Talent Management to Support Strategy 3 Implementation Nissan Risk Management to Support 4 Growth Strategy 8 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 9: Nissan's Global Growth Strategy
Nissan’s Global Growth Strategy ① Aggressive Strategy Strategy for Strategy for lower- emerging priced/compact vehicles countries V-Platform ② Leadership Strategy ③ Partnership Strategy Renault-Nissan Alliance 9 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 10: Global Development Structure
Global Development Structure 29 overseas sites/offices 29 海外拠点・事務所 Europe Vietnam China Taiwan United States DNTC NCIC NTCE(’88) NTV(’03) ZNTC(’93) DNTC(’03) NCIC(’04) YNTC(’80) NTCNA(’83) NTC NTCAF(’65) RNTBCI(’08) NTCSEA(’03) NTCSEA-I(’10) NTC-MEX(’94) NTC-BRA(’00) South Africa India Thailand Indo
Slide 11: Emerging Countries Offensive: China
Emerging Countries Offensive: China *Announced in July, 2011 2015(PV+LCV) •2 million units •Market share 10% Zhengzhou Plant (Henan province ) Xiangyang Plant (Hubei Province ) New plant (Dalian City) Huadu Plant (Guangzhou City) Venucia D50 LCV Tiida 11 (C) Copyright NISSAN MOTOR CO., LTD. www.niss
Slide 12: Emerging Countries Offensive: Partnership Strategy in India
Emerging Countries Offensive: Partnership Strategy in India Plan to increase production capacity from 200K to 400K units Establish partnership to strengthen product competitiveness and promote localization 9 Alliance Plant 9 Local Partnership Europe Develop Develop LCV LCV GCC Chennai Africa 12 (C)
Slide 13: Emerging Countries Offensive: Partnership strategy in Russia
Emerging Countries Offensive: Partnership strategy in Russia Alliance market share > 40% Nissan mid-term plan Market Share • Market share (TIV): 10% or over Nissan • Market share (TIV for foreign vehicles): 15% or over Renault • Sales volume: 400K or over Avtovaz 33% MS in Foreign TIV 40% 8.3% 7.5%
Slide 14: Emerging Countries Offensive: Alliance strategy in Brazil
Emerging Countries Offensive: Alliance strategy in Brazil Increase Alliance market share to 13% by 2016 (Present: 6.5%) Curitiba Curitiba Resende Resende New New Plant Plant 14 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 15: Emerging Countries Offensive: ASEAN
Emerging Countries Offensive: ASEAN 5 (Thailand, Indonesia, Malaysia, Philippines and Vietnam) Production Capacity FY12:220K units/year ASEAN5-MTP FY14~: 370K units/year 500K (Sales Unit) More than Triple 150K (FY10) (FY16) Production Capacity FY12:100K units/year 6% 15% (Market Share) FY14:250K uni
Slide 16: Emerging Countries Offensive: Lower-priced/Downsizing strategy
Emerging Countries Offensive: Lower-priced/Downsizing strategy Datsun brand to be launched in India, Indonesia and Russia 16 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 17: Zero-emission Leadership
Zero-emission Leadership units Cumulative Nissan LEAF sales:46 k units 50,000 45,000 M/C Density of quick-charging facilities 40,000 Approx. 1,200 locations as of 35,000 August 31, 2012 30,000 25,000 20,000 15,000 10,000 5,000 (台) 0 Jul_09 Sep_09 Nov_09 Jan_10 May_12 Sep 12 Nov_12 Mar_10 May_10 Jul_
Slide 18: Zero-emission Leadership
Zero-emission Leadership 18 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 19: Zero-emission Leadership
Zero-emission Leadership Energy storage system Smart Community Introduction of EV/FCEV Become the leader in EV battery 19 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 20: Zero-emission Leadership
Zero-emission Leadership Evaluating joint development with Daimler for mass- production of fuel cell vehicles X-TRAIL FCV Mercedes-Benz B-class F-CELL 20 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 21: Industry-leading environmental technology strategy
Industry-leading environmental technology strategy Clean Super Idle stop CVT Diesel Charger NGP 21 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 22: Difficult for one company to deal with ongoing changes
Difficult for one company to deal with ongoing changes Investment Investment Customer Customer Speed Speed needs needs Expanding ExpandingEmerging Emerging Countries Countries Various VariousEnvironmental Environmental Technologies Technologies Downsizing Downsizing /Lower /Lower Prices Government G
Slide 23: Importance of Partners
Importance of Partners Shared investment Utilization Utilization of Partnership of Local local expertise human resources Technological supplement Supplement Supplement Synergy Synergy Substitute Substitute Offset Offset 23 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights re
Slide 24: Our Partnerships
Our Partnerships 24 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 25: Agenda
1 Changes Surrounding Auto Industry 2 Nissan’s Global Growth Strategy Talent Management to Support Strategy 3 Implementation Nissan Risk Management to Support 4 Growth Strategy 25 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 26: Nissan Global Management
Nissan Global Management Based on global organization/human affairs/culture, maximize Nissan group’s overall performance with optimal allocation and full utilization of human resources and competencies Resource management Global HR Management (H/C, L/C) *1 NAC (Corporate, by Function, by Region) Ide
Slide 27: Diversity of Top Management
Diversity of Top Management Promote Promotediversity diversityat attop topmanagement managementlevels levels Non-Japanese Management Committee members 44% CVP or above @NML 24% 100 major global posts 49% 27 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 28: Agenda
1 Changes Surrounding Auto Industry 2 Nissan’s Global Growth Strategy Talent Management to Support Strategy 3 Implementation Nissan Risk Management to Support 4 Growth Strategy 28 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 29: Selling and General Administrative Expenses
Selling and General Administrative Expenses 20% SG&A expenses to sales ratio 15% 10% 5% 0% FY FY FY FY FY FY FY FY 2005 2006 2007 2008 2009 2010 2011 2012 1H 29 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 30: Extended Adoption of CMF
Extended Adoption of CMF Extended adoption of CMF along with increased volume → Economies of scale + Synergies from commonization ¾ CMF : 12% (2013) ⇒ Challenge to 58% (2016) CMF: 12% (2013) CMF: 58% (2016) 30 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 31: Increase Commonality Ratio with Renault
Increase Commonality Ratio with Renault ¾Achieve commonality ratio of approximately 50% with Renault through CMF Current Commonality CMF ratio 7% Commonality ratio Above 50% *Vehicle turnover basis 31 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 32: Total delivered Cost (TdC) Challenge
Total delivered Cost (TdC) Challenge Comprehensive cost competitiveness and enhancement activities including parts purchasing as well as vehicle assembly and logistics TdC Scope (Total delivered Cost) Purchased Parts Vehicle R&D parts logistics Production logistics Marketing Sales & (Sales Sales com
Slide 33: Summary
Summary Growth Strategy 1. Aggressive strategy • Emerging countries Prudent Management • Compact vehicles/Lower-priced vehicles 2. Leadership strategy • Zero-emission • Pure Drive Growth 3. Partnership strategy 1. Optimization of fixed cost • Investment efficiency • High operating rate • GFS 2. Mana
Slide 34: www.nissan-global.com
34 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.
Slide 35: www.nissan-global.com
35 (C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2012 All rights reserved.