Nissan Motor Co., Ltd. · TSE:7201

Nissan Motor — FY2016 Earnings Presentation

22 slides from Nissan Motor's earnings presentation, May 11, 2017

  1. Slide 1: FY16 results, Business updates, FY17 outlook

    Nissan Motor Co., Ltd. May 11th, 2017 FY16 results Business updates FY17 outlook www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 2

  2. Slide 2: FY16 financial results summary

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) (BILLION YEN) NET OPERATING NET FREE NET CASH REVENUE PROFIT INCOME * CASH FLOW (AUTO) (AUTO) 1,635.0 1,502.9 12,189.5 EXCLUDING 11,720.0 INVESTMENT IN MMC AND CK DIVESTITURE 793.3 817.1 742.2 663.5 523.8 481.2 677.1 FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16

  3. Slide 3: Income statement and operating profit variance analysis

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) CHANGE (BILLION YEN) FY15 FY16 VARIANCE vs. FY15 (%) NET REVENUE 12,189.5 11,720.0 -469.5 -3.9% OPERATING PROFIT 793.3 742.2 -51.1 -6.4% OP MARGIN 6.5% 6.3% NON-OPERATING 69.0 122.5 ORDINARY PROFIT 862.3 864.7 +2.4 +0.3% EXTRAORDINARY -129.4 100.5 PROFIT BE

  4. Slide 4: Free cash flow (auto business) and inventory status

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) FREE CASH FLOW (AUTO BUSINESS) (BILLION YEN) +237.5 -64.5 -66.6 1,238.0 -411.2 +1,131.6 -237.4 817.1 +97.4 -9.7 677.1 NET CASH AP / AR INVENTORY TAX / CASH FLOW CAPEX* INVESTMENT CK OTHERS FREE FREE CASH INFLOW OTHER FROM IN MMC DIVESTITURE CASH FLOW EXCLUD

  5. Slide 5: Financial results

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS ) (BILLION YEN) 1,800 1,635.0 1,600 1,502.9 1,390.1 1,400 1,200 1,000 800 600 400 200 0 FX: JPY/USD END OF MONTH 120.2 112.7 １１２.2 www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 9 FINANCIAL RESULTS (MANAGEMENT PRO FORMA BASIS *

  6. Slide 6: Constant currency basis, pro forma

    CONSTANT CURRENCY BASIS NET OPERATING REVENUE PROFIT MANAGEMENT PRO FORMA BASIS * OP MARGIN NET OPERATING REVENUE PROFIT 14,330.9 8.3% 13,365.6 OP MARGIN 1,194.1 13,365.6 12,842.3 OP MARGIN 7.0% 6.9% 935.5 882.4 935.5 FY15 FY16 FY15 FY16 (BILLION YEN) FY15 FY16 FY15 FY16 (BILLION YEN) * BASED ON CON

  7. Slide 7: Global industry volume and retail volume

    GLOBAL TIV *1 RETAIL VOLUME M/S*2 6.1% vs. FY15 vs. FY15 M/S*2 6.2% 5,626 GLOBAL +3.7% 91.81 GLOBAL +5.3% 5,423 87.15 5.08 JAPAN +2.8% 557 JAPAN -2.6% 4.94 573 26.88 CHINA +13.2% 1,355 CHINA +8.4% 23.68 1,250 NORTH 20.94 21.10 +0.8% NORTH (17.49) AMERICA 2,130 +5.9% (17.60) (U.S.) (-0.7%) 2,011 AMER

  8. Slide 8: Japan and China sales

    JAPAN TIV: 5.08 million units, +2.8% RETAIL VOLUME Sales: 557 k units, -2.6% 573 -2.6% 557 (THOUSAND UNITS) Market share: 11.0%, -0.6 points (2H: 12.5%, +0.7 points) Decrease in sales due primarily to the stop-sale of the Dayz and Dayz Roox minicar FY15 FY16 Registered car  TIV: 3.36 million units,

  9. Slide 9: North America and Europe sales

    NORTH AMERICA US US RETAIL VOLUME  TIV: 17.49 million units, -0.7% +4.2% 1,581  Sales: 1,581 k units, +4.2% 1,517 (THOUSAND UNITS)  Market share: 9.0%, +0.4 points Canada  Sales: 138 k units, +3.0%  Market share: 7.0%, +0.1 points FY15 FY16 Mexico  Sales: 409 k units, +14.4% US MARKET SHARE 

  10. Slide 10: Other markets

    OTHER MARKETS Sales: 808 k units, -3.3% RETAIL VOLUME  Asia & Oceania: 341 k units, -4.5% (TIV: +5.7%) -3.3% 835 (THOUSAND UNITS) 808  Latin America: 182 k units, +6.0% (TIV: -4.3%)  Middle East: 198 k units, -5.4% (TIV: -14.8%)  Africa & others: 87 k units, -10.7% (TIV: +6.2%) FY15 FY16 Datsun

  11. Slide 11: Key technologies progress and Alliance

    Key technologies Progress Autonomous Drive Serena ProPILOT Electrification Note e-POWER Connected & DeNA New Mobility Services Partnering for driverless field tests www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 21  Joined as third member of Alliance  On track to ide

  12. Slide 12: Alliance scale with Mitsubishi Motors

    www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 23 F Y 10 F Y 16 N ET R EVE N U E * 8.8T 12.8T +45% (J PY) G LO B A L SALE S 4.2M 5.6M +35% (units) TOTA L ASS ETS * 10.7T 19.1T +80% (J PY) * BASED ON CONTINUATION OF PROPORTIONATE CONSOLIDATION OF CHINA JV www.nissan-glo

  13. Slide 13: FY17 outlook

    *1 First Half Second Half *2 *2 8.3 +1.3 pts 7.0 6.9 +1.2 pts 6.1 5.8 5.3 FY10 FY11 FY12 FY13 FY14 FY15 FY16 *1: BASED ON CONTINUATION OF PROPORTIONATE CONSOLIDATION OF CHINA JV *2: CONSTANT CURRENCY BASIS www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 25 FY16 results

  14. Slide 14: FY17 priorities and sales outlook

    1 STEADY GROWTH PRODUCT & TECHNOLOGY OFFENSIVE 2 (Nissan Intelligent Mobility) 3 LEVERAGE ALLIANCE www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 27 TIV *1 RETAIL VOLUME M/S*2 6.2% vs. FY16 vs. FY16 M/S*2 6.1% 5,830 GLOBAL +3.6% 94.02 GLOBAL +2.4% 5,626 91.81 595 JAPAN

  15. Slide 15: FY17 outlook and operating profit variance

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) (BILLION YEN) FY16 FY17 VARIANCE CHANGE ACTUAL OUTLOOK vs. FY16 (%) RETAIL VOLUME (THOUSAND UNITS) 5,626 5,830 +204 +3.6% NET REVENUE 11,720.0 11,800.0 +80.0 +0.7% OPERATING PROFIT 742.2 685.0 -57.2 -7.7% OP MARGIN 6.3% 5.8% -0.5% NET INCOME * 663.5 535.0 -

  16. Slide 16: Dividend per share and sustainable growth

    +10.4% 53 48 42 2H 33 24 30 25 20 DIVIDEND PER SHARE (YEN) 1H 24 FY11 FY12 FY13 FY14 FY15 FY16 FY17 (Forecast) (Forecast) www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 31 S USTAI NAB LE G ROW TH Net Revenue Growth Sust ainable C OP% Cumulative Auto Free Cash Flow 12.8

  17. Slide 17: Appendix: Funding structure

    Appendix (AS OF MARCH 2017) TOTAL FUNDING AMOUNT: 9,413 BILLION YEN Equity Group Finance 11.2% (Inter-Company) 13.9% ABS Off B/S Commercial Paper 1.6% 4.6% S/T Loan ABS On B/S 4.4% 25.0% L/T Loan 23.8% Bonds 15.5% www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 34

  18. Slide 18: Net credit loss ratio

    (%) NFS NMAC NCF NRFM 100 90 80 70 60 33% 29% 31% 50 30% 40 5% 5% 30 48% 48% 41% 39% 40% 20 29% 32% 34% 10 0 FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16 4Q 4Q 4Q 4Q 4Q 4Q 4Q 4Q YTD YTD YTD YTD YTD YTD YTD YTD LEASE NFS: NISSAN FINANCIAL SERVICES, SALES FINANCE COMPANY IN JAPAN RETAIL NMAC: NISSAN MOTOR

  19. Slide 19: Sales finance operating profit and asset; variance analysis

    OPERATING PROFIT & ASSET (NFS : billion yen, NMAC : million USD, NCF : million CAD, NRFM : million Peso) FY15 FY16 VARIANCE 4Q YTD 4Q YTD Asset: 1,041.3 Asset: 1,114.3 Asset: +73.0 NFS OP: 25.7 OP: 27.5 OP: +1.8 Asset: 60,734 Asset: 63,911 Asset: +3,177 NMAC OP: 1,028 OP: 777 OP: -251 Asset: 5,794 A

  20. Slide 20: 4Q global volume and results

    GLOBAL TIV *1 RETAIL VOLUME M/S*2 6.6% vs. FY15 M/S*2 6.7% 1,633 GLOBAL +6.6% vs. FY15 1,532 24.65 GLOBAL +7.8% 213 JAPAN +12.2% 22.87 190 1.58 JAPAN +7.3% 1.47 425 CHINA +8.7% 391 8.28 CHINA +13.7% 7.29 NORTH -0.1% NORTH +5.1% 4.83 AMERICA 521 547 AMERICA 4.84 (4.09) (4.03) (U.S.) (-1.3%) (400) (41

  21. Slide 21: 4Q operating profit variance analysis

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) +53.8 (+26.2%) +127.7 -94.7 +44.6 +0.0 +3.9 -27.7 259.5 -20.5 FY15 VOLUME MARKETING COST R&D MFG OTHER FY16 FOREX FY16 4Q /MIX & ITEMS* EXP. EXP. ITEMS 4Q 4Q O.P. SELLING EXP. O.P. O.P. (w/o FX impact) * INCL

  22. Slide 22: Free cash flow and net cash

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) FREE CASH FLOW (AUTO BUSINESS) (BILLION YEN) +191.1 -40.6 524.6 -110.3 -0.8 510.9 +97.4 413.5 +373.8 +0.3 NET CASH AP / AR INVENTORY TAX / CASH FLOW CAPEX* CK OTHERS FREE FREE CASH INFLOW FROM OTHER FROM DIVESTITURE CASH FLOW P&L ITEMS OPERATING OPERATING F

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