Nissan s emerging market strategy and Japan s monozukuri December 1, 2011 Toshiyuki Shiga, COO Nissan Motor Co., Ltd. 1 POWER Brand & sales power 8 Global market share by FY16 (%) 8 Sustainable COP (%) 2
Nissan s global sales assumptions (K units) 7,500 6,000 4,500 +3 million units 4,750 7,600* 8.0% *assumption of 95 M units TIV 3,475 3,000 2,597 5.3% 6.2% 1,500 4.7% 0 FY01 FY06 FY11 outlook FY16 plan 3 FY11 1st half sales by regions Europe China Japan US +18.2% (K units) +9.7% +22.6% 277 4 339-14.0% 503 595 445 489 328 283 4 FY10 1H FY11 1H FY10 1H FY11 1H FY10 FY11 FY10 FY11 1H 1H 1H 1H
Nissan s emerging market strategy 1.Clear product strategy and market strategy 2.Monozukuri power to execute strategy 3.Diverse organization supporting global growth 5 V-platform strategy: V = Versatile Cost competitiveness + weight reduction + fuel efficiency 80% High carry-across ratio Over 80% localization in each site A B Complexity reduction 6
V-platform strategy: localization Offensive in both emerging and mature markets Europe India China Japan North America Middle East Africa Thailand Oceania Mexico Mexico Latin America 7 V-platform strategy: sedan India : Sep 2011 Booking of over 2,000 units China : Jan 2011 Average monthly sales of over 12,000 units US : Aug 2011 No.1 sales in its segment in September Thailand : Oct 2011 Thailand's first sedan eco-car Mexico : Jul 2011 Over 10,000 units sold since its launch 8
Emerging market offensive in China Announcement of DFL Mid-Term Plan Significant Growth Sales Volume Operational Enrichment 2010 2015 1.3M 2.3M = 1M Incremental Volume 2,300 Trusted Company 1,600 +1.0M (K units) 925 1,275 1,350 1,500 9 2009 2010 2011 2012 2015 Emerging market offensive: India Collaborate with partners for business expansion Europe Middle East Africa Alliance plant Chennai Sales network to cover more than 90 % 10
Emerging market offensive: Russia Become No.1 Asian brand with 7% market share St. Petersburg production Synergy with Avtovaz X-TRAIL Teana Murano Production capacity: 50 k units/year Platform commonization Mutual usage of production facilities 11 Emerging market offensive: Brazil Become No.1 Japanese brand with 5% market share Build a new plant with capacity of 200 k units/year Increase dealer network and segment coverage 12 12
Nissan s emerging market strategy 1.Clear product strategy and market strategy 2.Monozukuri power to execute strategy 3.Diverse organization supporting global growth 13 Restoration of Iwaki/Tochigi plant operations 14
The recovery actions April to September total Global production in calendar base 500 Total Dom Overseas FY10 1H 575 1,445 2,020 FY11 1H 540 1,712 2,252 Variance -35 +267 +232 FY10 FY11 (thousand units) 400 300 200 100 320 Over seas -22.4% 248 Over seas +19.3% 309 +18.5% 369 354 420 +17.6% 330 389 +23.9% 311 385 +11.6% 396 441 0 Dom Apr Dom May June July August September 15 Nissan March production in Thailand Japan s monozukuri supported exports to Japan Oppama NMT 16 16
100% electric vehicle: Nissan LEAF production Japan s monozukuri as the base for launch of Nissan LEAF Battery AESC (Auto motive energy supply) Inverter Zama office R&D Engineering Global production engineering center Technical center Advanced technology center Advanced Research Global HQ Oppama plant Motor Yokohama plant Vehicle production 17 Global production and domestic production 8.0M 6.0M Domestic Production + 3 million units 4.0M 4.2 1.0M 26% 25% 13% FY10 FY11 FY12 FY13 FY14 FY15 FY16 18
Countermeasures against the strong yen 1.Yen cost reduction: manufacturing cost reduction 2.Yen cost avoidance: localization & imported parts increase 3.Yen revenue increase: domestic sales in Japan 4.Yen cost absorption: enhancement of brand 19 Establishment of Nissan Motor Kyushu Co., Ltd. Shanghai Busan 1,100 km 200 km Tokyo Maximize manufacturing and cost competitiveness at Nissan in Japan. Produce half a million units Nissan Kyushu Utilize geographical advantage to be cost leader; aim to be the cost benchmark as a production base for the mass-market 20
Nissan s emerging market strategy 1.Clear product strategy and market strategy 2.Monozukuri power to execute strategy 3.Diverse organization supporting global growth 21 Global management Japanese Company Japanese Company Japanese Management Global Management Global Operation Global Operation 22
Diversity cycle An environment that accepts different opinions A diverse workforce making even better use of their talents Bigger value creation and revolution A diverse workforce Will lead to transparency within the company 23 Nissan s global management Resource Management Global Headcount & L/C Management Discover NAC Evaluate Educate Career Coaches/HPP: High Potential Person Talent Management Corporate Culture Management Institute GET etc. G-NRDP Global Performance management Global Compensation Policy Global Pension Management NISSAN Awards THANKS CARD CCT&FTT / CFT / V-up NISSAN WAY Diversity Nominate 24
CFT/V-Up Top management High level task Feasible idea/ target Management level Priority, Target CFT Operation leader Challenge and complement each other Task to be solved by V-up Operation Ordinary task V-up team (DECIDE) V-up team (DECIDE) V-up team (DECIDE) Each operation team V-up program Gemba level 25 The power comes from inside The focus is the customer, the driving force is value creation, and the measurement of success is profit. Mindset 1. Cross-functional, Cross-cultural Be open and show empathy towards different views; welcome diversity. 2. Transparent Be clear, be simple, no vagueness, and no hiding. 3. Learner Be passionate, learn from every opportunity; create a learning company. 4. Frugal Achieve maximum results with minimum resources. 5. Competitive No complacency, focus on competition, and continuous benchmarking. 1. Motivate How are you energizing yourself and others? 2. Commit & Target Are you accountable and are you stretching enough toward your potential? 3. Perform Are you fully focused on delivering results? 4. Measure How do you assess performance? 5. Challenge Actions How are you driving continuous and competitive progress across the company? 26