Nissan Motor Co., Ltd. December 2, 2009 Chief Operating Officer Toshiyuki SHIGA 2009 Nomura CEO Forum FY09 performance China updates Zero-emission leadership 1 2009 Nomura CEO Forum
Global total industry volume* After rapid declines, market was recovering gradulally (million units) 20.0 19.0 18.0 17.0 16.0 15.0 14.0 13.0 12.0 17.1 17.5 18.1 Governmental supports in developed markets Continuous growth in China Recovery from some developing markets 16.3 13.7 13.6 15.2 16.0 11.0 0 FY07 3Q FY07 4Q 1Q 2Q 3Q 4Q FY09 1Q FY09 2Q 2 *Nissan s estimation 2009 Nomura CEO Forum Nissan sales performance in FY09 first-half 34.35 31.16 2.18 TIV* Change vs. All 1H regions -9.3% Japan -10.0% 1,902 Retail volume 1,623 Change vs. All 1H regions -14.6% (million units) 6.79 (5.61) 9.46 5.64 North America (US) Europe China -21.4% (-21.9%) -14.7% +22.5% (thousand units) 285 519 (406) 249 332 Japan North America (US) Europe China -10.3% -22.2% (-21.4%) -18.5% +19.3% 7.09 Others -6.7% 238 Others -28.5% 1H FY09 1H 1H FY09 1H 3 *Nissan s estimation 2009 Nomura CEO Forum
Nissan production volume Production volume recovered gradually 1,000 (thousand units) 900 800 700 600 500 400 300 923 933 708 520 620 803 200 100 0 1Q 2Q 3Q 4Q FY09 1Q FY09 2Q 4 2009 Nomura CEO Forum Inventory management Inventory volume remains at low level 800 (New vehicles) 700 600 630 670 670-26% (thousand units) 500 400 300 470 440 410 200 100 0 Mar 2008 Jun Dec Mar 2009 Jun Sep Dealer inventory, except some minor countries 5 2009 Nomura CEO Forum Consolidated Nissan inventory, except some minor countries
FY09 outlook Retail sales forecast and production plan 3,411 Retail volume 3,300 Change vs. All regions -3.3% Production volume 3,084 3,170 Change vs. All regions +2.8% 612 Japan 0.0% 1,009 Japan -3.9% (thousand units) 1,000 (765) 468 712 North America (US) Europe China -11.7% (-10.6%) -11.7% +30.6% (thousand units) 805 430 713 North America Europe China -7.3% -4.4% +30.1% 508 FY09* Others -14.0% 213 FY09* Others +26.8% 6 * Forecast 2009 Nomura CEO Forum FY09 outlook Revised on November 4, 2009 (billion yen) Net revenue (A) (Actual) 8,437.0 (Previous - May 12) * FY09 (Forecast) 6,950.0 (B) * FY09 (Forecast) 7,000.0 (B)-(A) Variance -1,437.0 Operating profit -137.9-100.0 120.0 +257.9 Ordinary profit -172.7-200.0 20.0 +192.7 Net income -233.7-170.0-40.0 +193.7 R&D sales ratio CAPEX sales ratio 455.5 5.4% 383.6 4.5% 400.0 5.8% 350.0 5.0% 395.0 5.6% 325.0 4.6% -60.5-58.6 FX rate assumption JPY/USD JPY/EUR 100.7 144.1 95.0 125.0 90.0 131.6-10.7-12.5 7 * Forecast 2009 Nomura CEO Forum
FY09 upward revision Major factors Negative Foreign exchange 95 -> 85 JPY/USD in 2H Market situation Russia Middle East Positive Sales volume Governmental supports Eco friendly car line-up Flexible production control China Recovery plan Lower risk materialization Used car price in U.S Distressed suppliers etc., 8 2009 Nomura CEO Forum FY09 performance China updates Zero-emission leadership 9 2009 Nomura CEO Forum
Nissan sales (Passenger + LCV) in FY09 1Q : +9%, 2Q : +28%, 3Q : +72% 3Q YTD : 541 k units (+19%), FY09 forecast : 712 k units (+31%) 100.0 90.0 (thousand units) 80.0 70.0 60.0 50.0 40.0 30.0-15.4% 39.5 +38.1% 43.4 +37.1% +13.7% +27.7% +20.5% 66.3 61.7 63.3 57.9 +85.9% 71.1 +66.6% 62.9 +63.8% 75.2 20.0 10.0 0 Jan Feb March April May June July Aug Sep (Variance : vs. last year) 10 2009 Nomura CEO Forum Passenger model line-up Sedan Teana Hatchback Teana, Sylphy, Tiida and Livina : over 10 k units sales per each in July and Sep. SUV/MPV SUV:X-TRAIL Qashqai Sylphy Tiida (HB) MPV:Livina Geniss Livina C-Gear Tiida (Sedan) Livina (2row) New models in 11 2009 Nomura CEO Forum
Key contributions to Dongfeng Nissan strong performance Impact from tax reduction for vehicles under 1.6L e Expansion of distribution to Tier 2 and 3 cities 3 promises for brand enhancement 12 2009 Nomura CEO Forum Tax reduction for vehicles under 1.6L Thanks to tax reduction, the market for vehicles under 1.6L is expanding. Nissan s sales volume is increased by not only under 1.6L but also over 1.6L thanks to good sales of Teana, X-Trail and Qashqai. As a result, model mix remains at the same level. Qashqai DFL-PV under 1.6L model mix Sales mix under 1.6L: 66% in 08(63 63% in 09) Sylphy Tiida Tiida 1.6L Over 1.6L Livina Livina C-Gear 13 2009 Nomura CEO Forum
Dongfeng Nissan sales network in cities Dongfeng Nissan s sales in cities End of 2008 Actual:342 outlets End of 2009 Target:390 outlets End of 2010 Target:500 outlets :Tier1 Cities :Tier2 Cities :Tier3 Cities 14 2009 Nomura CEO Forum New brand tagline -Dongfeng Nissan 3 promises- 3Promises 1. Comfort Riding - Dynamic and efficient power - Roominess and comfort - Safety shield 2. Trustworthy Quality - Accurate and reliable design - Global benchmark manufacturing - 100% real time inspection 3. Warm Care - High quality of sales and services - Five promises after-sales services - Multi value-added services 15 2009 Nomura CEO Forum
China:Next steps Passenger vehicle: PV to increase production volume to meet market demand Commercial vehicle: raise sales target to equalize last year s level LCV: launch NT400 Cabstar, Dongfeng Shuaike and NV200 Keep necessary investments for growth strategy Continue Kaizen activities to enhance the quality of products and sales & services 16 2009 Nomura CEO Forum China:Continuous investments for growth (1) Expansion of Huadu plant Investment:RMB 5 billion Start of operation:2012 Capacity:240k units (Capacity to increase to 600k units from the current 360K) *Started 3 shifts from October 2009 due to meet strong demand 17 2009 Nomura CEO Forum
China:Continuous investments for growth (2) JATCO new plant (CVT production) Location:Guangzhou, Guangdong Start of operation:september 2009 Capacity:140K units/year Investment:RMB 300 million Xtronic CVT 18 2009 Nomura CEO Forum China:Continuous investments for growth (3) New engine plant Location:Shiyan, Hubei Province Start of operation:march 2009 Capacity:100K units/year Engine type:zd30 Engine Applicable model: NT400 Cabstar Investment: RMB 1.5 billion ZNA new plant Location:Zhenghou, Heian Start of operation:2010 Capacity:120K units/year Investment:RMB 1.0 billion 19 2009 Nomura CEO Forum
China:LCV 3 new models NT400 Cabstar:Launched in October 2009 Dongfeng Shuaike : Launched in October 2009 NV200: Launch in the early 2010 20 2009 Nomura CEO Forum FY09 performance China updates Zero-emission leadership 21 2009 Nomura CEO Forum
Why Zero Emission? Environment Problem - Global Warming - Eco-Conscious Demand - Social Trend - Zero Emission Vehicle Technology Innovation - Battery - 22 2009 Nomura CEO Forum Long-term targets for CO2 reduction IPCC 4 th Report Temperature expected to rise by 2 degrees Celsius by 2100 Need to keep CO2 concentration below 450ppm To achieve 450ppm, need to reduce CO2 emission from all new vehicles by 90% by 2050 (vs. 2000) New vehicle Well-to-Wheel CO2 emissions (%) 100 80 60 40 20 450ppm 0 2000 2010 2020 2030 2040 2050 90% Reduction 23 * 90% reduction is a trial calculation to keep CO2 emission at 450ppm level 2009 Nomura CEO Forum ICE HEV EV Renewable Electricity FCV Renewable Hydrogen Zero emission 100 80 60 40 20 0 Well-to-Wheel CO2 emission Reduction by future powertrains (%)
Reducing CO2 emissions ICE and HEV can only reach up to 50% CO2 reduction. Breakthrough needed to achieve CO2 reduction. EV (and FCV) is the most sustainable powertrain solution for the future Zero Emission. 80 CO 2 Emission (%) 60 40 20 0 VVEL+DIG Gasoline Engines Clean Diesel KAIZEN Technologies Hybrid (HEV) EV Zero Emission 24 2009 Nomura CEO Forum Nissan has the in-house technology Peace of mind with range display and automatic charging-station updates Nissan has developed the core technologies on the battery, motor and inverter Nissan has pioneered the Intelligent Transport System that incorporates use of telematics 25 2009 Nomura CEO Forum
EV s ability to meet global market needs For global markets, acceptance of the EV requires reliability under various conditions and comparable performance to current vehicles 26 2009 Nomura CEO Forum LEAF overview Seating capacity: 4-5 adults Cruising range : over 160km (US LA4) Motor : 80kW, 280Nm Battery : 24kWh Li-ion (produced by AESC) 27 2009 Nomura CEO Forum
LEAF overview EV dedicated IT support system 28 2009 Nomura CEO Forum Various merits of EV EV Zero-emission Sustainable mobility society Charge at home Quiet, for you and your neighbors Electricity cost 1,200yen/mth (Charge using nighttime electricity 1,000km/mth driving) Filled-up every morning Quietness from start-up to high-speed Equivalent gasoline cost of 100km/L EV unique dynamic performance Stimulating acceleration Smooth start 29 2009 Nomura CEO Forum
Cruising Range Nissan LEAF: More than 160km* on full charge *US LA4 mode Over 80% of daily driving is below 100km/day worldwide. In Japan and UK, over 80% of daily driving is below 50km/day. Maebashi Utsunomiya Mito Percentage (%) 130km Kofu 125km 110km Atami 110km 115km Tokyo 35km Yokohama Average range (km) per day Distance from Tokyo 30 2009 Nomura CEO Forum Infrastructure development Partnering with governments, agencies on infrastructure development Focus on developing an even distribution of charging units Quick charging serves to supplement home charging Case in Kanagawa by 2014 Charging stations for public use 1,000 Quick charge station every 5km (average) 5 km Number of stations 5 km 5 km 5 km 100 100 Quick charge Quick charge 23 Regular charge Today 2014 31 2009 Nomura CEO Forum
Total cost of ownership EV Comparable initial purchase cost = ICE Car Battery Price of similar ICE car _ + Monthly battery payment (Battery residual value) Target is to be less than cost of gasoline + Electric charging cost < *Incentives contribute to lower the price tag Cost of gasoline 32 2009 Nomura CEO Forum Battery Second-life : 4R Business Reuse euse Second-life use of batteries with high residual capacity Refabricate Repackage to fit client s needs Resell esell Resell batteries for various applications Examples of second-life application Recycle ecycle Salvage raw materials Repair parts Leveling of renewable energy 33 2009 Nomura CEO Forum
Current Battery Production Plan 60,000 units/year Production by early 2012 Sunderland, UK Flins, France 100,000 units/year Production from mid 2012 Portugal 65,000 units/year by 2010 Begun trial production in July Zama, Japan Smyrna, USA 60,000 units/year Production from mid 2012 200,000 units/year Production by late 2012 34 2009 Nomura CEO Forum Leveraging Global Partnerships Many governments and cities are showing interest to promote EV. More than 30 partnerships worldwide. (Nissan/Renault) UK Washington District of Columbia Ireland France Oregon California Tennessee Portugal Raleigh Monaco Arizona Switzerland Israël China Japan Singapore Australia 35 2009 Nomura CEO Forum
Nissan Renault Alliance Zero Emission strategy can be introduced based on the benefit of Alliance Synergies. Enrich peoples lives by attaining global leadership in zero-emission mobility. Alliance Synergies Shared Technology Development Shared Investment: Battery Production Leveraging Global Partnerships 36 2009 Nomura CEO Forum EV line up Portfolio of vehicles with separate brand identities Luxury EV 37 2009 Nomura CEO Forum
A New Era for Mobility Thank You. 39 2009 Nomura CEO Forum