Nissan Motor Co., Ltd. · TSE:7201
Nissan Motor — H1 FY2020 Earnings Presentation
19 slides from Nissan Motor's earnings presentation, Nov 12, 2020
Slide 1: Fiscal Year 2020 First-Half Financial Results
FISCAL YEAR 2020 FIRST-HALF FINANCIAL RESULTS Nissan Motor Co., Ltd. November 12th, 2020 AGENDA FY20 1ST HALF RESULTS FY20 OUTLOOK 2
Slide 2: Global Automotive Market Trend; Global Operations
GLOBAL AUTOMOTIVE MARKET TREND Global (K units) China US Japan 3 GLOBAL OPERATIONS 1. Global production recovery *1 2. Dealer operations recovery (K units) Global % of dealers opening 98% Digital customer experience (FY20 1H *2) Global 161K Online sales actions Sales resulted 33% after digital actio
Slide 3: Global Operations; FY20 2Q Sales Performance
GLOBAL OPERATIONS 3. New production models All New Roox All New Rogue All New Sentra (MEX) New Navara All New Kicks e-POWER All New Nissan Magnite 5 FY20 2Q (3 MONTHS) SALES PERFORMANCE GLOBAL AUTOMOTIVE MARKET * RETAIL VOLUME vs. FY20 1Q 21.35 1,270 20.33 GLOBAL +62.8% vs. FY20 1Q 5.55 1,056 GLOBAL
Slide 4: US Business Performance
US BUSINESS PERFORMANCE Figures are all Q2 vs. last year Sales power Retail volume & Fleet Mix Inventory Incentive / Revenue US private sales trend Dealer inventory volume Volume to Value Incentive / unit Net revenue / unit -28% Fleet mix Rental volume (-28 days) -5% +3% -20 points -90% Network powe
Slide 5: China Business Performance; Japan Business Performance
CHINA BUSINESS PERFORMANCE Overall Volume recovery Pricing control Retail sales trend Transaction price trend (19’ Dec = 100%) CASE*1 acceleration Autonomous Connected ProPILOT sales & Pen-rate*2 Number of connected vehicle sold*2 (M units) Altima X-Trail *1: CASE: Connected, Autonomous, Shared, Ele
Slide 6: Nissan NEXT: Business Transformation; FY20 1st Half Financial Performance
NISSAN NEXT: BUSINESS TRANSFORMATION Figures are all Q2 vs. last year Quality of sales Inventory Cost Optimization Rental mix % Manufacturing -9 -6 points % Product *2 Inventory *1 Incentive % (Nissan + Dealer) -10 % Fixed cost *3 Approx. -1 point -26 % Marketing & Sales -18 % New car sales G&A % -1
Slide 7: FY20 2Q Financial Performance; Free Cash Flow
FY20 2Q (3 MONTHS) FINANCIAL PERFORMANCE (TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) EXTERNAL / EXPENSE/ SALES VOLUME COST 30.0 -14.5 -171.5 +106.3 -4.8 One time items +19.9 +86.4 +44.9 FY19 FOREX VOLUME & MIX *1/ SELLING MONOZUKURI / FY20 PARTS SALES
Slide 8: Liquidity Status
LIQUIDITY STATUS 1. Auto cash and cash equivalent: 2,320.7 billion yen* Auto net cash: 505.8 billion yen* 2. Unused committed credit lines: approx. 2.0 trillion yen as of September 30, 2020 3. Funding in response to COVID-19: FY20 YTD total 895.0 billion yen 4. USD and EUR bond issuance in September
Slide 9: FY20 Sales Outlook
FY20 SALES OUTLOOK RETAIL VOLUME TIV *1 85.73 M units 4,930 1 vs PREVIOUS TIV *172.04 M units TIV * 75.90 M units vs. FY19 OUTLOOK*2 4,125 4,165 GLOBAL -15.5% +1.0% 1,547 1,475 1,460 CHINA -5.6% -1.0% 534 520 530 JAPAN -0.9% +1.9% 1,620 GLOBAL NORTH (excl. China) (1,237) 1,235 1,245 -23.1% +0.9% vs
Slide 10: FY20 Outlook: Operating Profit Variance Analysis
FY20 OUTLOOK (TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS VS PREVIOUS OUTLOOK*1 (BILLION YEN) -470.0 -340.0 +97.0 +29.0 +15.0 -11.0 FY20 RAW MATERIALS VOLUME & MIX *2/ SELLING SALES FINANCE / FY20 PARTS SALES / EXPENSE *3 MONOZUKURI / PREVIOUS CONSOLIDATED FIXED COST
Slide 11: Nissan NEXT Goals; Product Momentum: 12 New Models
NISSAN NEXT GOALS FY20-23 TRANSFORMATION PLAN STRATEGIC GOALS Ensure steady, profitable growth Capitalize on core competencies Enhance quality of business Ensure financial discipline Restore Nissan-ness 21 PRODUCT MOMENTUM: 12 NEW MODELS FY2020 1H FY2020 2H FY2021～ Kicks Rogue Ariya Pathfinder e-POW
Slide 12: Appendix: Product Momentum: New Models
PRODUCT MOMENTUM: 12 NEW MODELS New compact Rogue Nissan Magnite 23 Appendix 24
Slide 13: Sales Financing
(BILLION YEN) NET OPERATING TOTAL PENETRATION NET CREDIT REVENUE PROFIT ASSETS LOSS RATIO 586.6 136.6 10,174.0 521.1 118.0 8,847.3 46% 44% 0.98% 0.74% FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 FY19 FY20 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H FUNDING SOURCES AS OF SEPTEMBER 2020 • Strong profit and penetration
Slide 14: Sales Financing: Net Credit Loss Ratio
SALES FINANCING NET CREDIT LOSS RATIO FY19 FY20 VARIANCE 1H 1H Lease: 0.04% Lease: 0.02% Lease: -0.02% NFS Retail: 0.07% Retail: 0.06% Retail: -0.01% Total: 0.06% Total: 0.06% Total: 0.00% Lease: 0.45% Lease: 0.63% * Lease: +0.18% NMAC Retail: 1.65% Retail: 1.12% * Retail: -0.53% Total: 1.10% Total:
Slide 15: FY20 1st Half Sales Performance
FY20 1ST HALF SALES PERFORMANCE TIV * RETAIL VOLUME 2,501 43.85 vs. FY19 vs. FY19 32.82 GLOBAL -25.2% 1,699 GLOBAL -32.1% 11.53 718 9.33 CHINA -19.1% 596 CHINA -17.0% 2.62 281 2.03 JAPAN -22.6% 10.46 (8.75) NORTH 204 JAPAN -27.5% 8.05 -23.1% AMERICA (6.86) (U.S.) (-21.6%) 877 (679) NORTH 522 -40.5%
Slide 16: FY20 2Q Financial Performance
FY20 2Q (3 MONTHS) FINANCIAL PERFORMANCE (TSE REPORT BASIS — CHINA JV EQUITY BASIS) FY19 FY20 (BILLION YEN) VARIANCE 2Q 2Q NET REVENUE 2,630.7 1,918.5 -712.2 OPERATING PROFIT 30.0 -4.8 -34.8 OP MARGIN 1.1% -0.3% NON-OPERATING 50.3 5.2 *1 ORDINARY PROFIT 80.3 0.4 -79.9 EXTRAORDINARY -2.5 -16.7 *2 PRO
Slide 17: FY20 1st Half Operating Profit Variance Analysis
FY20 1ST HALF FINANCIAL PERFORMANCE (TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) FOREIGN EXCHANGE VOLUME SELLING IMPACT /MIX EXPENSES -11.0 -323.1 +80.8 TRY -4.2 (18.8 ⇒ 15.2) JPN -37.6 VOL*1: -35.6 JPN +5.8 INCENTIVES: +0.7 MIX: -8.1 OTHERS: +5.1 USD -
Slide 18: Inventory Status; Net Cash by Business Segment
(EXCLUDING CHINA JV) INVENTORY STATUS (THOUSAND UNITS) 1,000 810 830 800 800 580 530 600 400 200 0 2019 2020 Sep. Dec. Mar. Jun. Sep. Dealer inventory, except some minor countries Consolidated Nissan inventory, except some minor countries 35 NET CASH BY BUSINESS SEGMENT (TSE REPORT BASIS — CHINA JV
Slide 19: 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