Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — Q2 2022 Earnings Presentation
31 slides from Nissan Motor's earnings presentation, Nov 9, 2022
Slide 1: FY2022 first-half financial results
NISSAN MOTOR CORPORATION FY2029 first-half financial results November 9th, 9029 Nissan Motor Co., Ltd.
Slide 2: FY22 1st Half Results / FY22 Outlook
DFY22 15* HALF RESULTS FY22 OUTLOOK
Slide 3: FY22 2nd Quarter (3 months) Volume Results
FY22 2"4 QUARTER (3 MONTHS) VOLUME RESULTS [K-units] vs. FY21 Q2 CHINA -23.5% ODUCTION VOLUME RETAIL SALES [K-units] 954 vs. FY21 Q2 JAPAN = +9,8% NORTH EXCLUDING 413.6% AMERICA OTHERS -15.1% FY21 Q2 FY22 Q2 FY21 Q2 FY22 Q2 H1 (6 months) Results H1 (6 months) Results FY21 H1 FY22 H1 vs. FY21 H1 FY21
Slide 4: 2nd Quarter (3 months) Financial Performance
FY22 2"4 QUARTER (3 monTtHs) FINANCIAL PERFORMANCE OPERATING PROFIT . AUTO AUTO RED (EWERIMIE (OP MARGIN) BEV IMCOMIE " FREE CASH FLOW NET CASH 2,524.9 91.7 206.6 i) (3.6%) 1,042.7 B 1,938.8 an d 3.3%, Russia exit a > pa ; 552.3 E 3 (ia -174.6 FY21 Q2 FY22Q2 FY21 Q2 FY22Q2 FY21 Q2 FY22Q2 FY21 Q2 FY2
Slide 5: 1st Half Financial Performance
FY22 1st HALF FINANCIAL PERFORMANCE OPERATING PROFIT 4 AUTO NET REVENUE (OP MARGIN) NEN FREE CASH FLOW | nce EQUITY BASIS w 38 <ee Ze ro a 26 a Qa 4,662.3 3,947.0 139.1 156.6 (35%) Cee FY21H1 FY22H1 FY21H1 FY22H1 FY21H1 FY22H1 5,258.1 4,598.6 199.7 (4.3%) 919.6 168.6 (4.0%) D re a Russia exit eae: |
Slide 6: 1st Half Financial Performance
FY22 1st HALF FINANCIAL PERFORMANCE (EQUITY BASIS) (BILLION YEN) FY21 H1 NET REVENUE 3,947.0 OPERATING PROFIT 139.1 OP MARGIN 3.5% NON-OPERATING" 45.4 ORDINARY PROFIT 184.5 EXTRAORDINARY 76.9 PROFIT BEFORE TAX 261.4 TAXES -79.4 MINORITY INTEREST? -13.4 NET INCOME“ 168.6 (USD/JPY) 110 FXRATE (euR/IPY
Slide 7: 1st Half Financial Performance: Operating Profit Variance Analysis
FY22 1st HALF FINANCIAL PERFORMANCE (EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS: FY22 H1 vs. PREVIOUS YEAR (BILLION YEN) +190.6 -24.7 +93.9 _ Manufacturing 26.4 im 122.8 Logistics -189 § - Cost reduction/other 20.6 I Regulatory & Product enrichment [— Sales finance Volume/Mix 317 (excl. FY21 o
Slide 8: Operational Priority
FY22 OPERATIONAL PRIORITY BUSINESS SUSTAINMENT ELECTRIFICATION MOMENTUM > Macro-Economics e Keep strong resilience and agility to deliver productivity and value under severe volatility of inflation, forex variation and raw material cost etc. > COVID lock down in China e Carefully monitor because of
Slide 9: 1st Half Results / FY22 Outlook
FY22 1st HALF RESULTS DFY22 OUTLOOK
Slide 10: Sales Volume Outlook
SALES VOLUME OUTLOOK RETAIL VOLUME es Pirswiouts 4,000 vs. FY21 Outlook 3,876 3,700 GLOBAL -4.5% -75% JAPAN +12.0% -5.9% CHINA -11.7% -11.6% 2 ANAT +0.6% -0.8% =) Z 11.6% wt. ‘0 5 EUROPE (+3,8% excluding Russia) 6.3% So = OTHERS 6.1% “13.6% FY21 FY22 PREVIOUS FY22 REVISED ACTUAL OUTLOOK"! OUTLOOK *1
Slide 11: Outlook
FY22 OUTLOOK (EQUITY BASIS) VARIANCE FY292 FY29 VARIANCE (BILLION YEN) FY21 PREVIOUS REVISED vs FY21 Be AWN OUTLOOK" OUTLOOK (% Change) (06 Change) +2,475.4 +900.0 NET REVENUE 8,494.6 10,000.0 10,900.0 hese titers +112.7 +110.0 OPERATING PROFIT 247.3 250.0 360.0 (+46%) (+44%) OP MARGIN 2.9% 2.5% 3.3
Slide 12: Outlook: Operating Profit Variance Analysis
FY22 OUTLOOK (EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS FY22 REVISED OUTLOOK vs. FY22 PREVIOUS OUTLOOK"! (BILLION YEN) +125 -70 +25 360 as 950 | RAW MATERIALS VOLUME “96 — 115 LOSISTICS PERFORMANCE (excluding volume) +145 FY22 FOREX RAW PERFORMANCE INVESTMENT FOR FY22 PREVIOUS MATERIALS & NEW
Slide 13: Highly Competitive New Products
HIGHLY COMPETITIVE NEW PRODUCTS SAKURA NISSAN 13 MOTOR CORPORATION
Slide 14: Nissan Ambition 2030
NISSAN AMBITION 2030 NISSAN AMBITI N 2030 Together we empower EMPOWERING mobility and beyond EMPOWERING JOURNEYS SOCIETY \ NISSAN 14 MOTOR CORPORATION
Slide 15: Appendix
Appendix
Slide 16: Sales Financing
SALES FINANCING (BILLION YEN) NET REVENUE OPERATING PROFIT TOTAL ASSETS PENETRATION NET CREDIT LOSS RATIO 9,392.8 5319 519.4 8,688.5 52% 0.17% 0.17% 215.7 171.4 FY21 FY22 FY21 FY22 FY21 FY22 H1 H1 H1 H1 H1 H1 FUNDING SOURCES AS OF SEPTEMBER 2022 . - oo TOTAL FUNDING AMOUNT: 8,646 BILLION YEN * Profi
Slide 17: Sales Financing: Penetration
SALES FINANCING PENETRATION NFS NMAC NCF 100% DNAF (Retail) NRFM DNEFL (Lease) 90% 80% 70% 60% 50% 40% 30% 20% 10% 0% FY21 FY22 FY21 H1 H1 H1 H1 H1 H1 MUL eAse ME RETAIL FY22 FY21 FY22 NFS: Nissan Financial Services, sales finance company in Japan NMAC: Nissan Motor Acceptance Company LLC, sales fin
Slide 18: Sales Financing: Net Credit Loss Ratio
SALES FINANCING NET CREDIT LOSS RATIO 18 FY21 H1 Lease: 0.01% NFS Retail: 0.06% Total: 0.05% Lease:-0.26% NMAC Retail: 0.27% Total: 0.04% Lease:-0.01% NCF Retail: 0.05% Total: 0.02% Lease: 0.88% Retail: 0.10% Total: 0.17% DNFL* DNAF NFS: Nissan Financial Services, sales finance company in Japan NMAC
Slide 19: Sales Financing: Operating Profit & Asset
SALES FINANCING OPERATING PROFIT & ASSET 19 FY21 H1 NFS Asset: 1,359.8 (billion yen) OP: 942 NMAC* Asset: 44,182 (million USD) OP: 1,148 NCF Asset: 8,015 (million CAD) OP: 153 NREM Asset: 92,120 (million MXN) OP: 2,867 DNAF Asset: 68,851 DNFL OP: 1,618 (million CNY) NFS: Nissan Financial Services, s
Slide 20: 1st Half Sales Performance
FY22 1st HALF SALES PERFORMANCE TIV RETAIL VOLUME 39.39 vs. FY21 2,002 GLOBAL -4.0% JAPAN 6.2% vs. FY21 GLOBAL -21.6% CHINA -0.9% JAPAN +5.3% a, 0, NORTH 41 304 CHINA — -22.7% AMERICA (12.49%) (US) . EUROPE _ -178% NORTH (Excl. Russia) (-11.1%) AMERICA _, 730:8% (US) (-32.2%) EUROPE . -93,2% (Excl.
Slide 21: 2nd Quarter (3 months) Sales Performance
FY22 2"4 QUARTER (3 montHs) SALES PERFORMANCE 21 (MILLION UNITS) FY21 Q2 Includes China local brands and LCV Nissan estimation for TIV TIV vs. FY21 18.52 GLOBAL -0.5% JAPAN +1.9% CHINA -78% NORTH AMERICA 71.1% (U.S) (0.4%) EUROPE -9.7% (Excl. Russia) (-2.79%) OTHERS +18.5% FY22 Q2 (THOUSAND UNITS) N
Slide 22: Consolidated Sales Volume
FY22 CONSOLIDATED SALES VOLUME FY22 H1 FY22 Q2 (3 months) vs. FY21 vs. FY21 1,079 GLOBAL -0.9% 560 GLOBAL +3.8% JAPAN +77% JAPAN = +12.1% NORTH america *°6% NORTH america +169% EUROPE — -4.7% EUROPE -10.4% ASIA -9.5% ASIA -10.5% OTHERS -5.1% OTHERS — -9.8% (THOUSAND UNITS) (THOUSAND UNITS) 22 NISSAN
Slide 23: Financial Performance
FY22 FINANCIAL PERFORMANCE (EQUITY BASIS) 23 NET REVENUE 2,1373 OPERATING PROFIT 64.9 OP MARGIN 3.0% NON-OPERATING’t 39.1 ORDINARY PROFIT 104.0 EXTRAORDINARY'2 1.6 PROFIT BEFORE TAX 105.6 TAXES -53.2 MINORITY INTEREST? -5.3 NET INCOME 47A (USD/JPY) 130 FX RATE (EUR/JPY) 138 “1: Includes profit / los
Slide 24: Operating Profit Variance Analysis: FY22 Q2 vs. Previous Year
FY22 FINANCIAL PERFORMANCE (EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS: FY22 Q2 vs. PREVIOUS YEAR (BILLION YEN) +1371 -8.8 a 96.0 Manufacturing TA Logistics -106 Cost reduction/other 9.2 +68.2 -72.2 91.7 Credit loss provision -240 (FY21 one-time) 63.4 Remarketing -15.0 (FY21 one-time) Volume/M
Slide 25: FY22 1st Half Operating Profit Variance Analysis
FY22 FINANCIAL PERFORMANCE (EQUITY BASIS) FY22 1st HALF OPERATING PROFIT VARIANCE ANALYSIS FOREIGN EXCHANGE IMPACT USD CAD MXN CNY THB TRY OTHERS +93.9 +134.3 (109.8 134.0) +189 (88.3 3103.8) -18.3 (6.5 367) -97 (16.7 319.0) -8.8 (3.4 33.8) -8.4 (13.0 38.0) 14.1 (BILLION YEN) VOLUME/MIX +31.7 +5.4 V
Slide 26: FY22 2nd Quarter Operating Profit Variance Analysis
FY22 FINANCIAL PERFORMANCE (EQUITY BASIS) 26 FOREIGN EXCHANGE IMPACT USD CAD MXN THB CNY TRY OTHERS FY22 2"4 QUARTER (3 MONTHS) OPERATING PROFIT VARIANCE ANALYSIS +68.2 +95.2 (110.1 138.3) +109 (87.4 3106.0) -10.3 (5.5 36.8) -59 (3.3 93.8) -5.1 (170 319.6) -4.6 (129 377) 0) (BILLION YEN) VOLUME/MIX
Slide 27: Free Cash Flow (Auto Business)
FY22 FINANCIAL PERFORMANCE (EQUITY BASIS) FREE CASH FLOW (AUTO BUSINESS) (BILLION YEN) NET CASH INFLOW FROM P&L ITEMS +46.5 +56.5 +103.1 AP/AR -64.1 +350.1 +295.9 INVENTORY -135.6 -220.4 -355.9 TAX/OTHER OPERATING ACTIVITIES -75.0 +747 -0.4 CASH FLOW FROM OPERATING ACTIVITIES -218.2 +2609 +427 CAPEX
Slide 28: Outlook: Operating Profit Variance Analysis
FY22 OUTLOOK (EQUITY BASIS) 28 OPERATING PROFIT VARIANCE ANALYSIS FY22 REVISED OUTLOOK vs. PREVIOUS OUTLOOK* (BILLION YEN) +110 -100 250 FY22 PREVIOUS FOREX RAW SALES MONOZUKURI OTHER FY22 REVISED OUTLOOK* MATERIALS PERFORMANCE PERFORMANCE OUTLOOK FY22 revised outlook vs. previous year FY21 Actual F
Slide 29: Inventory Status
INVENTORY STATUS (EXCLUDING CHINA JV) INVENTORY STATUS (THOUSAND UNITS) 600 400 330 280 290 2 230 : a ° FY21 Q2 FY21 03 FY21 Q4 FY22 Q1 FY22 Q2 HH -«Dealer inventory, except some minor countries «Consolidated Nissan inventory, except some minor countries 29 NISSAN MOTOR CORPORATION
Slide 30: Net Cash by Business Segment
NET CASH BY BUSINESS SEGMENT (EQUITY BASIS) AS OF MARCH 31, 2022 AS OF SEPTEMBER 30, 2022 (BILLION YEN) AUTOMOBILE SALES /AUIROH HOLS) HE SALES & Case TOTAL & aan ELIMINATIONS — FINANCING ELIMINATIONS — FINANCING BORROWINGS FROM 1,8675 5,264.9 7,132.4 1,950.3 5,282.2 7,232.5 THIRD PARTIES INTERNAL L
Slide 31: Forward-looking statements
31 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 dif