Nissan Motor Co., Ltd. · TSE:7201

Nissan Motor — Q3 FY2019 Earnings Presentation

18 slides from Nissan Motor's earnings presentation, Feb 13, 2020

  1. Slide 1: FY19 3Q Results, Revision of FY19 Outlook, Business Transformation Update

    Nissan Motor Co., Ltd. February 13th, 2020 FY19 3Q RESULTS REVISION OF FY19 OUTLOOK BUSINESS TRANSFORMATION UPDATE www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 2

  2. Slide 2: Global sales volume and key markets

    GLOBAL TIV *1 RETAIL VOLUME vs. FY18 M/S*2 5.9% 68.74 4,023 M/S*2 5.7% vs. FY18 3.73 65.30 GLOBAL -5.0% 3.67 JAPAN -1.7% 410 3,697 GLOBAL -8.1% 381 JAPAN -6.9% 19.36 17.28 CHINA -10.7% 1,096 1,091 CHINA -0.4% 15.81 NORTH -1.7% 15.53 (13.16) (13.04) AMERICA (U.S.) (-0.9%) 1,427 (1,078) NORTH -10.2% 1

  3. Slide 3: FY19 3Q YTD financial results

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) (BILLION YEN ) NET OPERATING NET FREE NET CASH REVENUE PROFIT INCOME *1 CASH FLOW (AUTO) (AUTO) 8,578.4 7,507.3 1,334.4 313.7 316.7 847.5 *2 54.3 39.3 -105.9 -670.9 FY18 FY19 FY18 FY19 FY18 FY19 FY18 FY19 3Q YTD 3Q YTD 3Q YTD 3Q YTD 3Q YTD 3Q YTD 3Q 3Q FY18

  4. Slide 4: Operating profit variance analysis and free cash flow

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) OPM: 3.7% 313.7 -134.9 SALES PERFORMANCE: -127.6 -180.9 FOREX: -50.3 +77.2 -37.0 REGULATION/ OPM: PRODUCT -37.1 0.7% ENRICHMENT: -58.1 +53.3 54.3 RAW MATERIAL/ TARIFF: -26.5 FY18 FOREX/ VOLUME/ SELLING PURCHA

  5. Slide 5: Revision of FY19 outlook: retail volume

    FY19 3Q RESULTS REVISION OF FY19 OUTLOOK BUSINESS TRANSFORMATION UPDATE www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 9 M/S*3 6.0% RETAIL VOLUME vs PREVIOUS M/S*3 5.9% 5,516 M/S*3 5.8% vs. FY18 OUTLOOK*1 5,240 596 5,050 GLOBAL -8.4% -3.6% 580 555 JAPAN -6.9% -4.3% 1,5

  6. Slide 6: Revised FY19 outlook and operating profit variance

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) CHANGE VARIANCE FY19 FY19 vs. vs. (BILLION YEN) PREVIOUS REVISED PREVIOUS PREVIOUS OUTLOOK*1 OUTLOOK*2 OUTLOOK*1 OUTLOOK*1 (%) RETAIL VOLUME (K. units) 5,240 5,050 -190 -3.6% NET REVENUE 10,600.0 10,200.0 -400.0 -3.8% OPERATING PROFIT 150.0 85.0 -65.0 -43.3

  7. Slide 7: FY19 dividend per share

    YEAR END FULL YEAR INTERIM (PLAN) (PLAN) FY19 DIVIDEND 10 YEN 0 YEN 10 YEN PER SHARE www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 13 FY19 3Q RESULTS REVISION OF FY19 OUTLOOK BUSINESS TRANSFORMATION UPDATE www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All r

  8. Slide 8: Recovery plan key pillars and Nissan brand KPI trend

    RECOVERY PLAN KEY PILLARS 1. US BUSINESS RECOVERY 2. OPERATIONAL AND INVESTMENT EFFICIENCY IMPROVEMENT 3. STEADY GROWTH THROUGH NEW PRODUCTS, ADVANCED TECHNOLOGY AND “NISSAN INTELLIGENT MOBILITY” www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 15 NISSAN BRAND KPI TREND

  9. Slide 9: Production capacity rationalization and product line-up

    PRODUCTION CAPACITY RATIONALIZATION / EFFICIENCY IMPROVEMENT On Track • Redefined strategic role for each plant • Developed plans for each plant and commencing implementation phase PRODUCT LINE-UP : Over 10% Reduction On Track • Datsun brand exit from Indonesia • Cease production of low performing m

  10. Slide 10: Appendix: steady growth and mid-term plan revision

    TO ACHIEVE STEADY GROWTH • Further optimization of operational and investment efficiency • Sustain investments in new technologies/CASE • Transformation of corporate culture REVISION OF MID-TERM PLAN • Revising mid-term plan considering current performance and market conditions • Announce updated mi

  11. Slide 11: Funding sources and sales finance penetration

    FUNDING SOURCES AS OF DECEMBER 2019 TOTAL FUNDING AMOUNT: 9,259 BILLION YEN Group Finance (Inter-Company) Equity 4.4% Commercial Paper 16.9% 5.5% S/T Loan ABS Off B/S 4.9% 2.7% L/T Loan 20.2% ABS On B/S 24.9% Bonds 20.5% www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 2

  12. Slide 12: Net credit loss ratio and operating profit & asset

    NET CREDIT LOSS RATIO FY18 FY19 VARIANCE 3Q YTD 3Q YTD Lease: 0.03% Lease: 0.03% Lease: 0.00% NFS Retail: 0.08% Retail: 0.08% Retail: 0.00% Total: 0.07% Total: 0.07% Total: 0.00% Lease: 0.47% Lease: 0.50% Lease: +0.03% NMAC Retail: 1.53% Retail: 1.72% Retail: +0.19% Total: 1.06% Total: 1.16% Total:

  13. Slide 13: 3Q sales and operating profit variance analysis

    SALES PROFIT 3Q OPERATING PROFIT CHANGE (THOUSAND UNITS) FY18 3Q FY19 3Q vs FY18 VARIANCE ANALYSIS TIV 22,152 21,450 -3.2% (BILLION YEN) 103.3 -47.9 RETAIL 1,340 1,195 -10.8% SALES VOLUME/MIX *: -89.5 Nissan outperformed the following market: SELLING EXP.: PURCHASING COST • China (Nissan -0.6%, TIV

  14. Slide 14: 3Q financial results

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) (BILLION YEN ) NET OPERATING NET FREE NET CASH REVENUE PROFIT INCOME *1 CASH FLOW (AUTO) (AUTO) 3,045.7 2,504.2 1,334.4 847.5 *3 103.3 70.4 22.7 -26.1 *2 -69.6 -255.9 FY18 FY19 FY18 FY19 FY18 FY18 FY19 3Q 3Q 3Q 3Q 3Q FY19 3Q 3Q 3Q FY18 3Q FY19 3Q MANAGEMENT

  15. Slide 15: 3Q operating profit variance analysis

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) OPM: 3.4% 103.3 -47.9 SALES PERFORMANCE: -68.2 -89.5 FOREX: -22.8 OPM: REGULATION/ 0.9% PRODUCT ENRICHMENT: +27.3 22.7 -20.4 RAW MATERIAL/ +24.4 -16.2 TARIFF: -4.7 +21.3 FY18 FOREX/ VOLUME/ SELLING PURCHASING

  16. Slide 16: YTD operating profit variance and free cash flow

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) FOREIGN EXCHANGE VOLUME SELLING IMPACT /MIX EXPENSES -50.3 -180.9 +53.3 USD -26.3 (111.1 ⇒108.7) JPN -20.5 VOL*1: -14.3 JPN +1.5 INCENTIVES: +4.3 MIX: -8.7 OTHERS: -2.8 CAD -7.9 (85.1 ⇒ 81.9) INCENTIVES*2: +2

  17. Slide 17: Inventory status and net cash

    (EXCLUDING CHINA JV) INVENTORY STATUS (THOUSAND UNITS) (THOUSAND UNITS) 1,000 1,000 800 920 860 870 850 850 830 830 810 810 790 800 600 600 400 400 200 200 0 0 2015 2016 2018 Jun. 2019 Sep. Dec. Mar. Jun. Dec. Mar. Jun. Sep. Dec. DEALER INVENTORY, EXCEPT SOME MINOR COUNTRIES CONSOLIDATED NISSANEXCEP

  18. Slide 18: 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

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