Nissan Motor Co., Ltd. · TSE:7201

Nissan Motor — H1 FY2016 Earnings Presentation

20 slides from Nissan Motor's earnings presentation, Nov 7, 2016

  1. Slide 1: Nissan Motor Co., Ltd. November 7th, 2016

    Nissan Motor Co., Ltd. November 7th, 2016 (TSE REPORT BASIS — CHINA JV EQUITY BASIS) (BILLION YEN) NET OPERATING NET FREE NET CASH REVENUE PROFIT INCOME * CASHFLOW (AUTO) (AUTO) 1,473.6 5,933.3 1,300.3 5,321.0 395.0 339.7 364.1 325.6 282.4 213.0 FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16 1H 1

  2. Slide 2: Net revenue and operating profit, constant currency basis

    CONSTANT CURRENCY BASIS NET OPERATING REVENUE PROFIT TSE REPORT BASIS NET OPERATING 6,123.4 REVENUE PROFIT OP MARGIN 5,933.3 8.5% 5,933.3 OP MARGIN 519.5 5,321.0 OP MARGIN 6.7% 6.4% 395.0 339.7 395.0 FY15 FY16 FY15 FY16 1H 1H 1H 1H (BILLION YEN) FY15 FY16 FY15 FY16 1H 1H 1H 1H (BILLION YEN) www.niss

  3. Slide 3: Global and Japan sales performance

    GLOBAL TIV *1 RETAIL VOLUME vs. FY15 M/S*2 6.1% M/S*2 5.8% vs. FY15 44.70 GLOBAL +3.5% 2,616 2,613 GLOBAL -0.1% 43.20 2.31 JAPAN -1.0% 265 211 JAPAN -20.2% 2.33 12.31 CHINA +7.9% 588 610 CHINA +3.8% 11.40 NORTH +0.7% 10.83 10.91 AMERICA NORTH +5.4% (9.10) (9.03) (U.S.) (-0.8%) 995 1,048 AMERICA (755

  4. Slide 4: China and North America retail volume

    CHINA RETAIL VOLUME *1 FY16 1H (Jan. to Jun.) *2  TIV : 12.31 million units, +7.9% +3.8% *1 610  Sales : 610 k units, +3.8% (THOUSAND UNITS) 588  Market share: 5.0%, -0.2 points FY16 3Q YTD (Jan. to Sep.)  TIV *2 : 18.59 million units, +13.0% FY15 FY16  Sales*1 : 929 k units, +8.2% 1H 1H  Mark

  5. Slide 5: Europe and other markets retail volume

    EUROPE (INCLUDING RUSSIA) RETAIL VOLUME Europe excluding Russia  TIV: 8.93 million units, +8.1% 367 -1.4% 362  Sales: 319 k units, +4.4% (THOUSAND UNITS)  Market share: 3.6%, -0.2 points Russia  TIV: 0.70 million units, -13.3% FY15  Sales: 43 k units, -30.1% 1H  Market share: 6.1%, -1.5 points

  6. Slide 6: FY16 1st half financial performance

    FY16 1ST HALF SALES PERFORMANCE FY16 1ST HALF FINANCIAL PERFORMANCE FY16 BUSINESS HIGHLIGHTS www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 10 (TSE REPORT BASIS — CHINA JV EQUITY BASIS) (BILLION YEN) FY15 FY16 VARIANCE CHANGE 1H 1H vs. FY15 (%) NET REVENUE 5,933.3 5,32

  7. Slide 7: Operating profit variance analysis and free cash flow

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) +124.5 (+31.5%) +19.6 -9.6 +5.1 519.5 -179.8 +142.7 +43.5 -76.8 FY15 1H VOLUME MARKETING COST R&D MFG OTHER FY16 1H FOREX FY16 1H O.P. /MIX & ITEMS* EXP. EXP. ITEMS O.P. O.P. SELLING EXP. (w/o FX impact) * IN

  8. Slide 8: Inventory status and exchange rates

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

  9. Slide 9: Financial results, management pro forma basis

    FINANCIAL RESULTS (MANAGEMENT PRO FORMA BASIS *1) (BILLION YEN) NET OPERATING NET FREE NET CASH REVENUE PROFIT INCOME *2 CASHFLOW (AUTO) (AUTO) 1,675.1 6,454.4 1,456.5 5,837.1 461.6 412.0 408.1 325.6 282.4 278.1 FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16 1H 1H 1H 1H 1H 1H 1H 1H 1H 1H *1: BASE

  10. Slide 10: FY16 Business Highlights

    FY16 1ST HALF SALES PERFORMANCE FY16 1ST HALF FINANCIAL PERFORMANCE FY16 BUSINESS HIGHLIGHTS www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 18 Datsun redi-GO Serena Kicks Pathfinder Armada Titan www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserv

  11. Slide 11: Model lineup: Micra, Rogue, Note e-POWER, Infiniti

    Rogue Micra Note e-POWER www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 20 Q30 QX30 QX60 Q60 www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 21

  12. Slide 12: Serena ProPILOT and partnership with Microsoft

    www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 22 Serena - ProPILOT Partnership with Microsoft www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 23

  13. Slide 13: FY16 outlook (previously announced in May)

    www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 24 Previously announced in May (TSE REPORT BASIS — CHINA JV EQUITY BASIS) (BILLION YEN) FY15 FY16 VARIANCE CHANGE ACTUAL OUTLOOK vs. FY15 (%) RETAIL VOLUME (THOUSAND UNITS) 5,423 5,600 +177 +3.3% NET REVENUE 12,189.5 11,80

  14. Slide 14: Dividend per share (yen)

     Minimum payout ratio of 30%  Announced share buyback program on February 26, 2016 14.3% 48 (300 million shares up to 400 billion yen during 2016) 42 2H 33 24 30 25 20 DIVIDEND PER SHARE (YEN) 1H 24 FY11 FY12 FY13 FY14 FY15 FY16 (Forecast) www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. A

  15. Slide 15: Appendix: total funding amount

    Appendix (AS OF SEPTEMBER 2016) TOTAL FUNDING AMOUNT: 8,295 BILLION YEN Equity Group Finance 11.0% (Inter-Company) 16.3% ABS Off B/S 2.1% Commercial Paper 3.6% S/T Loan 3.3% ABS On B/S 27.3% L/T Loan 23.6% Bonds 12.8% www.nissan-global.com © Copyright NISSAN MOTOR CO., LTD. All rights reserved. 29

  16. Slide 16: Net credit loss ratio

    (%) NFS NMAC NCF NRFM 100 90 80 70 60 26% 33% 50 30% 32% 40 6% 6% 30 45% 42% 47% 49% 20 36% 36% 29% 31% 10 0 FY15 FY16 FY15 FY16 FY15 FY16 FY15 FY16 1H 1H 1H 1H 1H 1H 1H 1H LEASE NFS: NISSAN FINANCIAL SERVICES, SALES FINANCE COMPANY IN JAPAN RETAIL NMAC: NISSAN MOTOR ACCEPTANCE CORPORATION, SALES FI

  17. Slide 17: Sales finance operating profit and asset

    OPERATING PROFIT & ASSET (NFS : billion yen, NMAC : million USD, NCF : million CAD, NRFM : million Peso) FY15 FY16 VARIANCE 1H 1H Asset: 1,076.6 Asset: 1,124.6 Asset: +48.0 NFS OP: 13.9 OP: 15.1 OP: +1.2 Asset: 58,109 Asset: 61,978 Asset: +3,869 NMAC OP: 473 OP: 442 OP: -31 Asset: 5,339 Asset: 6,398

  18. Slide 18: Second quarter sales and financial results

    GLOBAL TIV *1 RETAIL VOLUME M/S*2 6.2% M/S*2 6.1% vs. FY15 vs. FY15 1,321 1,326 GLOBAL +0.4% 21.91 GLOBAL +3.4% 144 121 JAPAN -15.9% 21.18 1.23 JAPAN -0.2% 1.23 292 311 CHINA +6.7% 6.01 CHINA +10.1% 5.46 NORTH -0.1% 5.39 AMERICA NORTH +2.0% 5.40 519 (4.53) (4.47) (U.S.) (-1.3%) 509 AMERICA (386) (38

  19. Slide 19: Second quarter operating profit variance analysis

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) OPERATING PROFIT VARIANCE ANALYSIS (BILLION YEN) +12.4 +69.8 252.5 -3.3 +24.1 -9.7 201.3 -42.1 163.9 -88.6 FY15 2Q VOLUME MARKETING COST R&D MFG OTHER FY16 2Q FOREX FY16 2Q O.P. /MIX & ITEMS* EXP. EXP. ITEMS O.P. O.P. SELLING EXP. (w/o FX impact) * INCLUDIN

  20. Slide 20: Free cash flow (auto business)

    (TSE REPORT BASIS — CHINA JV EQUITY BASIS) FREE CASH FLOW (AUTO BUSINESS) (BILLION YEN) +326.7 +4.9 -62.1 226.8 -42.7 +1.1 134.8 -93.1 NET CASH AP / AR INVENTORY TAX / OTHER CASH FLOW CAPEX* OTHERS FREE INFLOW FROM OPERATING FROM CASH P&L ITEMS ACTIVITIES OPERATING FLOW ACTIVITIES * CAPEX DOES NOT I

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