Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — Q3 2024 Earnings Presentation
55 slides from Nissan Motor's earnings presentation, Mar 13, 2025
Slide 1: FY2024 Third Quarter Financial Results & Turnaround Progress
FY2024 Third Quarter Financial Results & Turnaround Progress NISSAN MOTOR CORPORATION
Slide 2: FY2024 Q3 YTD Financial Results, Outlook, Turnaround Progress
‘or | FY2024 03 YTD Financial Results FY2024 Outlook Turnaround Progress OR CORPORATION
Slide 3: FY2024 Q3 YTD Financial Results
MA, FY2024 03 YTD wi Financial Results
Slide 4: FY2024 Q3 YTD Summary
FY2024 Q3 YTD Summary NET REVENUE OPERATING PROFIT NET INCOME 9,143.2B 64.0B 5.1B -0.3% YEAR OVER YEAR -86.6% YEAR OVER YEAR -98.4% YEAR OVER YEAR NISSAN 4 MOTOR CORPORATION
Slide 5: FY24 Q3 Retail Sales Results
FY24 Q3 Retail Sales Results Q3 YTD (Thousand units) Q3 -1.8% 2,441 —+ 9397 ws. FY23 vs. FY23 China -9.1% China -16.2% Japan -2.6% Japan 3.1% North 5 North ; 917 America + 24% arena’ America +9-8% ouding +0.3% +1.9% 944 Europe -2.6% Europe 8.9% 396 Others -0.3% Others 3.6% FY23 Q3 YTD FY24 Q3 YTD FY
Slide 6: FY24 Q3 YTD Financial Performance
FY24 Q3 YTD Financial Performance @ FY23 03 YTD M&M FY24 03 YTD GBillion Yen) Net Revenue Operating port Net Income’ CAPEX R&D 9,171.4 9,143.2 vo nol 5.2%) 455.0 £ 3809 436.9 s 395.4 = 259.9 fe} é 64.0 0.7 & (0.7%) 51 Net Revenue Operating port Free Cash Flow Net Cash 241.2 1,330.7 8,308.9 8,195.6 (
Slide 7: Operating Profit Variance Analysis
Operating Profit Variance Analysis FY24 Q3 YTD Actual vs. Previous Year (Billion Yen) +31.4 +23.5 -214.3 -59.5 -106.3 -89,2 64.0 FY23 Raw Sales Monozukuri A FY24 Q3 YTD Forex Materials Performance Cost Inflation Others Q3 YTD Breakdown Volume/Mix -104.3|Manufacturing -6.2|Monozukuri_ —_-87.2|Sales F
Slide 8: FY2024 Outlook
Slide 9: FY24 Volume Outlook
FY24 Volume Outlook Retail Sales (Thousand units) Production Volume vs. FY23 3,442 Global -1.2% 3,430 3900 794 China 12.2% China Japan -0.9% North . +6.2% Excludit 1,262 America ° Chinas. Excluding aaa +2.3% China 2 361 Europe -3.1% 541 Others -0.9% P| FY23 FY23 FY24 Actual Actual Outlook Se NISSAN
Slide 10: FY24 Outlook
FY24 Outlook (Billion Yen) FY23 FY24 Previous FY24 Variance Variance vs Actual Outlook Outlook vs FY23 Previous Outlook Net Revenue 12,685.7 12,700.0 12,500.0 -185.7 -200.0 Operating Profit 568.7 150.0 120.0 -448.7 -30.0 OP Margin 45% 1.2% 1,0% -3.5 points -0.2 points Net Income’! 426.6 TBD -80.0 -5
Slide 11: Operating Profit Variance Analysis: FY24 Outlook
Operating Profit Variance Analysis FY24 Outlook vs. Previous Outlook 150.0 +5.0 +5.0 -20.0 (Billion Yen) — — my -5.0 0.0 -15.0 120.0 FY24 . r Raw Sales Monozukuri A FY24 Previous Forex Materials Performance Cost Inflation Others Outlook Breakdown _ Volume/Mix -5.0| Manufacturing +15.0|Monozukuri 0.0
Slide 12: Turnaround Progress
Turnaround Progress
Slide 13: Turnaround Actions
Turnaround Actions Stabilize & Right-size business Reinforce product / Ensure growth Even at 3.5 million units annual sales, ensure Drive topline growth with enhanced product sustainable profitability and cash generation for competitiveness and explore strategic healthy future growth partnerships Re
Slide 14: Operating profit walk
Operating profit walk Adjust company cost structure to global 3.5M volume level ~100B variable + >300B fixed Drivers: Risks: + New model launches + C02 regulatory compliance + Expansion of models + Fixed cost inflation to existing markets + Competitive Landscape and new segments (-) FOREX fluctuatio
Slide 15: 4,000 3,500 3,000 2,500 2,000 1,500 1,000 1,000 1,500 2,000 2,500 3,000 3,500 4,000
4,000 3,500 3,000 2,500 2,000 1,500 1,000 500 0 0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
Slide 16: Stabilize & Right-size
Stabilize & Right-size
Slide 17: Key Turnaround Measures
Key Turnaround Measures Ensure sustainable profitability and financial flexibility Fixed Cost Reduction 1. SG&A Reduction >300B JPY 2. Restructuring Manufacturing Base by FY26 3. Development Efficiency Improvement Variable Cost Reduction ~100B JPY by FY26 NISSAN 17 MOTOR CORPORATION . *all amounts i
Slide 18: SG&A Reduction Target and Visibility
Target 57 Visibility 57 + [3] Target 96 Visibility 96
Slide 19: Voluntary Separation Program
• • • **Voluntary Separation Program
Slide 20: Restructuring Manufacturing Base
Restructuring Manufacturing Base Target ~100B cost savings KEY MEASURES KEY ACTIONS Vehicle & Powertrain plants: Reduce headcount by 5300 by FY25; additional 1200 by FY26 3 plant closures: Thailand #1 in FY25 Q1, two others in FY25 Q3 and FY26 Shift changes: Smyrna #2, Canton #2 in FY25 Realize 47B/
Slide 21: Restructuring Manufacturing Base
Restructuring Manufacturing Base -20% global production capacity & workforce optimization CHINA TOTAL GLOBAL PLANTS TOTAL CONSOLIDATED PLANTS PLAN (implemented) (units) (excluding China) 70% =—————————+ _ 85%"** 5M Plant utilization ratio Announced To come 3.0M | au Changzhou 4.5M. Plant Workforce |
Slide 22: Development Efficiency Improvement
Development Efficiency Improvement Target >30B cost efficiency KEY MEASURES KEY ACTIONS Reduce Shorten development lead time by 15 months for lead model and 20 development months for subsequent model cost & speed Reduce 20B by implementing family development Optimize Streamline outsourced developmen
Slide 23: Development Efficiency Improvement
Development Efficiency Improvement LEAD VEHICLE SUBSEQUENT VEHICLE Accelerate time to market and lower development costs START START START START via family development DEVELOPMENT PRODUCTION DEVELOPMENT PRODUCTION Minimize planning and development Old cycles, along with physical lots First model uti
Slide 24: Variable Cost Reduction
Variable Cost Reduction KEY MEASURES Target ~100B cost savings KEY ACTIONS Design simplification Manufacturing operational cost reduction Achieve a 60B design-driven cost reduction + Adjust performance and content to latest market standards, delivering customer value at competitive prices. + Startin
Slide 25: Reinforce product / Ensure growth
Reinforce product / Ensure growth
Slide 26: Enhance Product Portfolio
Enhance Product Portfolio FY24 refreshed and reinforced models Qashqai Juke Kicks Segment pioneer with Note / Aura . A advanced connectivity Bold coupe-crossover with a Expressive compact crossover Full-size SUV with effortless extensive personalization with Intelligent All-Wheel Drive. off-road cap
Slide 27: Enhance Product Portfolio: Upcoming Models
Enhance Product Port NISSAN MOTOR CORPORATION Meet diverse needs with upcoming models HYBRID MODELS REFRESH MODEL LINE- UP Rogue PHEV Rogue e-POWER Kei car Large Minivan FY25 FY26 FY25 FY26 RIGHT EV (NEV) TO RIGHT MARKET Future version of LEAF All New Compact EV N7 FY25 FY25 FY24 *SOP 27
Slide 28: Expand generation e-POWER
Expand 3 generation e-POWER FIRST GEN SECOND GEN THIRD GEN e-POWER Evolution FY16 » FY20-FY24 _ FY25 to FY26 . Dedicated engine with new concept : H i combustion system H ‘ Strong tumble Retains tumble Adjust the flow Market Bs Pet) =] a H aw ai flow with little vortex until ignition ‘0 the spark In
Slide 29: Innovations that Differentiate
Innovations that Differentiate 2026~ & BEYOND DISTINCTIVE TECHNOLOGIES PIONEERING FUTURE INNOVATIONS Revolutionizing AD Experiences Progressive Driverless Mo Services —_— — “stim = Door to door autonomous driving with Large Nissan Google Built-in System Language Model (LLM) Al on Nissan SDV platform
Slide 30: Consolidated sales volume (ex. China)
Consolidated sales volume (ex. China)
Slide 31: Streamlining Organization & Processes
Streamlining Organization & Processes Restructure top management A A LD -20% y N hz y X FY24 FY25 Transition to a single-layer, non- officer corporate executive framework by eliminating corporate officer system and reducing positions by 20%. 6 © >] Promoting the next generation with more advancement
Slide 32: Next Steps
Next Steps Building on current measures to proactively advance the next phase of restructuring by seizing every possible measure for improvement Business & Portfolio Restructuring + Review market presence and determine where we remain and outline our operational strategy for rest of the markets. + O
Slide 33: NISSAN
NISSAN MOTOR CORPORATION
Slide 34: Appendix
Appendix NISSAN iON MOTOR CORPORATI
Slide 35: FY24 Q3 Financial Performance
APPENDIX FY24 Q3 Financial Performance Operating Profit NH FY23 03 BM FY24 Q3 (Billion Yen) Net Revenue (OP margin) Net Income’ CAPEX R&D 3,108.1 3,159.0 3 = 141.6 3 (4.6%) 150.1 160.9 159.3 cI 104.7 i 31.1 § (1.0%) 29.1 Ll ee “14.1 Net Revenue Operating Tot Free Cash Flow Net Cash 4 2814.5 2,843.5
Slide 36: Financial Performance
APPENDIX Financial Performance (Billion Yen) FY23 Q3 YTD|FY24 Q3 YTD Variance FY23 Q3 FY24 Q3 Variance Net Revenue 9,171.4 9,143.2 -28.2 3,108.1 3,159.0 +50.9 Operating Profit 478.4 64.0 -414.4 141.6 31.1 -110.5 OP Margin 5.2% 0.7% -4.5 points 4.6% 1.0% -3.6 points Non-Operating’! 617 95.4 -14.2 12.
Slide 37: Operating Profit Variance Analysis: Q3
APPENDIX Operating Profit Variance Analysis FY24 Q3 Actual vs. Previous Year 141.6 43.4 49.3 -19.8 (Billion Yen) -16.8 -35.0 -44.6 31.1 FY23 Raw Sales Monozukuri « FY24 Q3 Forex Materials Performance Cost Inflation Others Q3 Breakdown Volume/Mix —_-8.4|Manufacturing -2.3]Monozukuri_ — -28,6]Sales Fi
Slide 38: Operating Profit Variance Analysis: Outlook
APPENDIX Operating Profit Variance Analysis FY24 Outlook vs. FY23 Actual +30.0 +10.0 -270.0 (Billion Yen) Es —— +35.0 -100.0 -153.7 120.0 FY23 Raw Sales Monozukuri A FY24 Actual Forex Materials Performance Cost Inflation Others Outlook Breakdown Volume/Mix — -95.0|Manufacturing +15.0}Monozukuri —_-6
Slide 39: Sales Financing
NDIX: SALES FINANCING Sales Financing ™@ FY23 Q3 YTD Bi FY24 Q3 YTD (Billion Yen) Net Credit Net Revenue Operating Profit Total Assets Penetration Loss Ratio 862.5 oa79 baa 9.8676 10,6915 aausimes : 0.60% * Excluding one-time accounting adjustment of FY23, profits are slightly lower year over year.
Slide 40: Sales Financing: Penetration
PENDIX: SALES FINANCING Penetration ™ Lease M Retail NFS NMAC NCF NRFM DNAF/DNFL FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 FY23 FY24 Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD NFS: Nissan Financial Services, sales finance company in Japan NRFM: NR Finance Mexico, sales finan
Slide 41: Sales Financing: Net Credit Loss Ratio
APPENDIX: SALES FINANCING Net Credit Loss Ratio NFS NMAC NCF DNAF/DNFL Lease Retail Total Lease Retail Total Lease Retail Total Lease Retail Total ian 0.02% 0.05% 0.05% 0.04% 0.68% 0.40% 0.00% + 0.06% +0.08% «0.91% 0.52% 0.57% OVID 0.01% 0.06% 0.05% 0.42% 084% 0.69% 0.05% 0.14% 0.00% 1.06% 0.75% 082
Slide 42: Sales Financing: Operating Profit & Asset
APPENDIX: SALES FINANCING Operating Profit & Asset NFS NMAC NCF NRFM DNAF/DNFL (Billion JPY) (Million USD) (Million CAD) (Million MXN) (Million CNY) Asset OP Asset OP Asset OP Asset OP Asset OP FY23 13929 246 40,523 818 6,624 161 97977 3417 47873 1,787 03 VID 392, . , ; FY24 1,476.5 272 40,740 652 6
Slide 43: TIV and Retail Sales: Q3 YTD
PPENDIX: TIV AND RETAIL SALES FY24 Q3 YTD Sales Performance TIV (Million units) 6994 — 63.45 vs. FY23 1731 China -2.1% Japan -3,.2% North 14.27 America. +2.8% (11.90) (Us) (+ 1.8%) Excluding Europe +5.6% . 12.11 m China: (aia) (Excl. Russia) — (+0.4%) 43.5% Others +4.0% 15.16 FY23 03 YTD FY24 Q3 YTD
Slide 44: TIV and Retail Sales: Q3
PPENDIX: TIV AND RETAIL SALES FY24 Q3 QTD Sales Performance TIV (Million units) Retail Volume (Thousand units) +1.7% — > 22.01 vs. FY23 — vs. FY23 it -8.29 China 8.2% China -16.2% Japan 4.3% Japan -3.1% North America +9.3% (US) (+9,6%) North “ Excluding BD America + 9.8% oie’ Europe +5.7% China: oe)
Slide 45: Japan
APPENDIX Japan TIV (Thousand units) Retail Sales Production -3.2% oo -12.3% 3,399 —» 3.991 2.6% 551 N > —~r vs. FY23 336 —~> 398 vs. FY23 484 vs. FY23 2,156 340 “shoo Registered ~1.8% 208 Registered ~4.1% Export -14.0% 1,249 Mini -5.5% 429 Mini -0.2% 212 Domestic -9.5% FY93 FY23 FY24 FY23 FYD4 03 YT
Slide 46: North America
APPENDIX North America TIV (Thousand units) Retail Sales Production +2.8% +2.4% -4,4% 14,268 —* 4,663 SS FRE 917 —7 Ot we 8 913 97g ws FY28 2,368 Others +7.7% 254 Others +5.5% — 466 Others +8.8% 11,900 US +1.8% 663 US +1,3% 447 US -18.1% FY23 FY24 FY23 FY24 FY23 FY24 Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 Y
Slide 47: Europe
APPENDIX Europe TIV (Thousand units) Retail Sales Production +5.6% 19.106 vs. FY23 -2.6% -16.9% 686 Russia +92,2% 244 —+ 938 244 \ 203 Excl. 11,420 Russia +0.4% FY23 FY23 FY24 FY23 FY24 Q3 YTD Q3 YTD Q3 YTD Q3 YTD Q3 YTD FY9303 —-FY24.03 FY9303 —-FY24.03 FY9303 —-FY24.03 3,766 817 Re +18% 86 79 Tota
Slide 48: China
APPENDIX TIV (Million units) Retail Sales (Thousand units) Production +1.6% 794 12.2% -14.7% > vs. FY23 94.7 25.1 a7 ~ 697 vs. FY93 \ 665 Others -16.8% 14.2 Others +16.1% 687 Nissan Brands “11.5% 10.6 International _ PV Brand “179% FY23 FY24 FY23 FY24 FY23 FY24 FY23 O4 FY24 O4 FY23 O4 FY24 O4 74 82
Slide 49: Consolidated Sales Volume
APPENDIX Consolidated Sales Volume FY24 Q3 YTD (Thousand units) FY24 Q3 -4,69 2,018 4.6% vs. FY23 = Japan -8.1% 683 3.3% 660 vs. FY23 Japan 47% - nae 228 North -3.5% America 253 Europe -9.7% Europe 16.2% 110 Asia -12.5% Asia +4.6% 336 Others -1.4% Others +6.1% FY23 a3 VID FY23 Q3 FY24 Q3 NISSAN 49 M
Slide 50: Operating Profit Variance Analysis: Forex
APPENDIX Operating Profit Variance Analysis Forex USD 143.3 152.6 84.5 USD 1479 152.4 19.2 CAD 106.3 110.9 12.1 MXN 84 76 87 MXN 8.2 8.2 10.4 GBP 183.5 195.4 2.5 GBP 179.6 195.5 9.9 AUD 96.3 99.5 1 AUD 94.3 100.8 TT CAD 108.6 109.0 0.2 EUR 155.3 1649 -71 TWD 46 46 0.2 EGP 46 3.1 -9.9 BRL 29.8 26.1 -
Slide 51: Operating Profit Variance Analysis: Sales Performance
APPENDIX Operating Profit Variance Analysis Sales Performance (Billion Yen) FY24 Q3 YTD FY24 Q3 Volume’! Mix Incentives? Total Volume’! Mix Incentives? Total x Japan -5.0 +2.1 +19 -1.0 -1.2 -1.0 +0.5 -1.6 = US -64.2 -60.2 +267 -777 -10.7 -8.3 +6.4 -12.6 E Europe -32.3 -12.2 +22.9 -21.5 -19.7 -3.8 +1
Slide 52: Automotive Free Cash Flow
APPENDIX Automotive Free Cash Flow (Billion Yen) al Q2 Q3 FY24 YTD Net Cash Inflow from P&L Items +75.4 -8.2 +113.8 +181.1 AP/AR -98.5 +42 -121.6 -215.8 Inventory -479 -42.6 +113.4 +228 Working Capital -146.4 -38.4 -8.3 -193.1 Tax/Other Operating Activities -121.1 +47 -109.5 -226.0 Cash Flow from Op
Slide 53: Inventory Status (Excluding China JV)
APPENDIX Inventory Status (Excluding China JV) ll Dealer inventory (except some minor countries) Consolidated Nissan inventory (except some minor countries) (Thousand units) 630 | 640 = 640.—Ct«~=«G. i i i i 600 : | oo | | 540 | ; 470 | 3890 | FY19 Q4 FY20 Q4 FY21 04 FY22 Q4 FY23 Q1 FY23 Q2 FY23 Q3
Slide 54: Net Cash by Business Segment
APPENDIX Net Cash by Business Segment (Billion Yen) AS OF MARCH 31, 2024 AS OF DECEMBER 31, 2024 ‘Siiminations Financing «T°! “Eliminations Financing Borrowings from Third Parties 2,028.3 5,783.1 7811.4 2,1179 6,579.6 8,697.4 Internal Loan to Sales Financing (Net) -1,560.0 1,560.0 0.0 -1,335.5 1,335
Slide 55: Forward-looking statements
This presentation contains forward-looking statements, based on judgments and estimates that have been made on the basis of currently available information. By nature, such statements are subject to uncertainty and risk. Therefore, you are advised that the final results might be significantly differ