1

Andy PalmerLCV Business Unit

Nissan Motor Co., LtdNovember 28th, 2005

Nissan Value-Up Breakthrough Seminar

LCV Business Unit

1. Breakthrough During Nissan Value-Up

2. Definition Of Light Commercial Vehicle

3. Regional Product Line-Up

4. Organization Of LCV Business Unit

5. Six Strategies For Breakthrough

6. Deployment Of LCV Sales Network

7. Progress Report

AGENDA

2

“Value-up with sustained performance”

Commitments:

4.2 million units in FY08

Top level operating profit margin

ROIC average 20%

Infiniti Global Tier-1 Luxury Brand

Light Commercial Vehicles

Leading Competitive Countries (LCCs)

Geographic Expansion

1. Breakthrough during NISSAN Value-UpFour Breakthroughs

3

AD VanATLAS

CIVILIAN

CARAVAN

CABSTAR

Light Commercial Vehicles

23 Nissan-badged models and 10 DFAC models

1. Breakthrough during NISSAN Value-UpTh

ousa

nd u

nits

0

450

FY00 FY03 FY07*

600

300

150

0

6%

4%

8%

2%

Con

solid

ated

ope

ratin

g m

argi

n

312

187 203 182234

FY01 FY02 FY04

434+40%

3.3%3.6%

-0.5%1.4%

4.0%

8.0%

* Volume is measured from April till March.

Light Commercial Vehicles

(163)

1. Breakthrough during NISSAN Value-Up

4

1. Breakthrough During Nissan Value-Up

2. Definition Of Light Commercial Vehicle

3. Regional Product Line-Up

4. Organization Of LCV Business Unit

5. Six Strategies For Breakthrough

6. Deployment Of LCV Sales Network

7. Progress Report

AGENDA

2. Definition of LCV

Vehicles under 8 ton GVW, sold to companies and individuals for transportation of goods and people, primarily in

pursuance of their business.”

Current Models

Light Duty Truck Atlas 10, Atlas 20, Cabstar, Atleon

Van

Medium 2 Van Interstar

Medium 1Van Caravan, Primastar

Small Van Vanette, Kubistar

Light Van AD Van, Expert

Heavy Bus Civilian

Taxi Cedric Sedan, Crew

Pick-Up

Large Pick-Up none

Medium Pick-Up D21

Small Pick-Up B120, Queen Cab

Segmentations

5

1. Breakthrough During Nissan Value-Up

2. Definition Of Light Commercial Vehicle

3. Regional Product Line-Up

4. Organization Of LCV Business Unit

5. Six Strategies For Breakthrough

6. Deployment Of LCV Sales Network

7. Progress Report

AGENDA

Sales Volume by Region

0

50

100

150

200

250

300

350

400

450

k un

its

FY04 Actual FY07 Commitment

434

312

+122+39.1%

71

50

146

45

Japan

Europe

DFL LCV

MEX+GOM

6

Global LCV product launch (Full Model)

NISSAN 180 NISSAN Value-Up

1 3 0

0 1 1 31

FY02 FY03 FY04 FY05 FY06 FY071st half 2nd half

Cabstar

1st half 2nd half 1st half 2nd half

AD Van Atlas10 Atlas 20

(LCV P-Up)

(NSPU)

Clipper

Van

Clipper

Truck

Kubistar

Primastar

31 0

( ) Opportunity

Launching Plan of New Models

0 2 4

Value-Up NISSAN Post Value-Up

0 24

FY05 FY06 FY07 FY08 FY09 FY101st half 2nd half 1st half 2nd half 1st half 2nd half

0 1 0 3 11

Global LCV product launch (Full Model - Tentative)

+ DFAC

Launching Plan of New Models

2 31

7

2004 Today 2007 Value-UP

New

New

New

3-1. Regional Product Line-Up: Japan

New

New

New

2007 Value-UP2004 Today

3-1. Regional Product Line-Up: Europe

8

New

New

New

2007 Value-UP2004 Today

3-1. Regional Product Line-Up: US and Mexico

2004 Today

New

New

2007 Value-UP

New

New

3-1. Regional Product Line-Up: GOM

9

2007 Value-UP

Nissan

DFL-LCV

2004 Today

3-1. Regional Product Line-Up: China

1. Breakthrough During Nissan Value-Up

2. Definition Of Light Commercial Vehicle

3. Regional Product Line-Up

4. Organization Of LCV Business Unit

5. Six Strategies For Breakthrough

6. Deployment Of LCV Sales Network

7. Progress Report

AGENDA

10

4-1. Organization of LCV Business Unit

Total head count: 440Tavares

EVPLCV-BU Head

Palmer VP

•Engineering•Purchasing•Manufacturing

•Marketing•Sales Network

•After sales

•Controller•HR/ Administrative

•Business Strategy

•Program Management

•Product Strategy

•Product Planning

AdministrationEngineering Strategy

Marketing Strategy

Program Director Office

Product Strategy & Planning

Engineering Team310 Engineers in totalNissan ShataiNissan Motor Light TruckNissan Europe

LCV-CBU

China

LCV-EBU

Europe

LCV-NBU

N. America

LCV-LBU

S. America

LCV-SABU

S. Africa

LCV-NABU

Middle East

4-2. Global Organization of LCV Business UnitManagement Axis

Reg

iona

l Axi

s

LCV-BU

VP

LTO

CVE

LZO

CPS

LXO

PD

LAO

Controller

LTO

Purchasing

LMO

MD

11

1. Breakthrough During Nissan Value-Up

2. Definition Of Light Commercial Vehicle

3. Regional Product Line-Up

4. Organization Of LCV Business Unit

5. Six Strategies For Breakthrough

6. Deployment Of LCV Sales Network

7. Progress Report

AGENDA

Strategy 6Learning Company

COP Volume

Infrastructure (organization, business process, culture, etc)

Strategy 2Cost Reduction

Value Enhancement

Strategy 1New Model

Development

Strategy 4Value Chain Enhancement

Strategy 5OEM Sales

Strategy 3Enter NewTerritories

5-1. Six Strategies for Breakthrough

12

5-2. Six Strategies and Major Activities

1. New Model Development? Product planning ? Mid & long term product strategy

2. Cost Reduction/Value Enhancement? Cost reduction? Design-to-cost

3. Enter New Territories? USA, GOM and PRC

4. Value Chain Enhancement? Establishment of LCV sales network in Japan and its

deployment to Europe and GOM? LCV brand enhancement? LCV aftersales enhancement

5. OEM Sales6. Learning Company

? Establishment of global LCV-BU? Change culture and improve work environment? Establish LCV-BU’s financial simulator

Plans and Milestones are Checked with

HOSHIN KANRIMANAGE-

MENT CYCLE

5-2-a. New Model Development

New model pictures are confidential.

13

5-2-b. Cost Reduction

Existing models

New models

FY2007LCC

Global Sourcing

Design-to-Cost

Converging Platforms

Concurrent Engineering

GSE Activities

Global Service Efficiency

Leading Competitive Countries

Time Management

Production Efficiency

Creative thinking

G&AParts

Power trains

Manufacturing

Development

5-2-c. Entering New Territories: ChinaLCV-R&D Organization(Alt3)

Centred　@ WuhanSatellite @Xiangfan @Zhengzhou

LDT CVE(NML)

＜EX；F91A＞

LCV CVE(NML)

＜EX；NSV＞

＜EX；DFAC LDT＞Support as consignment work

DF brand NISSAN brand

DFAC D+D? people

DFAC EVPFang Chi

R&D GMfrom NML

DFAC+ZNA D+D+ FSA

(from NMLT)? people

DFAC+ZNA D+D+ FSA or STA or Trip

(from NML or NS)? people

CVE Watabe

Management reportProject reportCoordination

DFAC EVPＷａｔａｎａｂｅ

14

5-2-d. Value Chain EnhancementLCV Pro Shop Logo

Reception Desk

Dealer signal board

5-2-e. OEM Sales

• OEM is unique and essential to LCV Business- Contributing 39% of Total LCV Volume, 19% of COP

• OEM Seller is more profitable than OEM Buyer- Nissan is currently net OEM Buyer

Models as OEM Seller

0 . 0 %

2 . 0 %

4 . 0 %

6 . 0 %

8 . 0 %

1 0 . 0 %

1 2 . 0 %

1 4 . 0 %

1 6 . 0 %

COP %By Model

Models as OEM Buyer

15

5-2-f. Learning Company

We inherited nothing from the past and started to rebuild LCV Business from the scratch.

Everything we learn for success during Value-Up will be passed onto our next generation.

Organization: Global, lean, and flat

Culture: Vibrant and innovative

People: Open, creative, and team-oriented

1. Breakthrough During Nissan Value-Up

2. Definition Of Light Commercial Vehicle

3. Regional Product Line-Up

4. Organization Of LCV Business Unit

5. Six Strategies For Breakthrough

6. Deployment Of LCV Sales Network

AGENDA

7. Progress Report

16

6-1. Value Chain Enhancement

1) Launching LCV Pro-Shops in Japan

Policy

? Deploy LCV Pro-Shops in the high demand area

? Set up “Shop in Shop” in the current PV/RV shopsLCV Pro-Shop Standards

? LCV Pro-Shop requires “Dedicated LCV Sales Professional”

? LCV Pro-Shop requires “Demo & Display LCV Vehicles”

? LCV Pro-Shop requires “Specialized Visual Identity ”

? LCV Pro-Shop requires “Specialized Spare Parts Tools”

? LCV Pro-Shop requires “Service Facility for Atlas 20”

? LCV Pro-Shop requires “New After Sales Products”

2) Global Roll-out of Sales Network

Europe, US and GOM

LCV Pro Shop Logo

17

Reception Desk

Dealer signal board

18

Dealer signal board

Global LCV LOGO

This area can be changed upon market’s situation.

19

1. Breakthrough During Nissan Value-Up

2. Definition Of Light Commercial Vehicle

3. Regional Product Line-Up

4. Organization Of LCV Business Unit

5. Six Strategies For Breakthrough

6. Deployment Of LCV Sales Network

7. Progress Report

AGENDA

7. Volume/COP Trend and Forecast

0

50

100

150

200

250

300

350

400

450

500

95 96 97 98 00 01 02P 02A 03 04A 05F 06F 07F

(K units)

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

Declining volumeNegative COP

99

20

0

50

100

150

200

250

300

350

400

450

500

95 96 97 98 99 00 01 02P 02A 03 04A 05F 06F 07F

(K units)

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

Declining volumeNegative COP

TroughDuring NRP

7. Volume/COP Trend and Forecast

0

50

100

150

200

250

300

350

400

450

500

95 96 97 98 99 00 01 02P 02A 03 04A 05F 06F 07F

(K units)

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

Declining volumeNegative COP

TroughDuring NRP

RecoveryN180

7. Volume/COP Trend and Forecast

21

8.0%

0

50

100

150

200

250

300

350

400

450

500

95 96 97 98 99 00 01 02P 02A 03 04A 05F 06F 07F

(K units)

-8.0%

-6.0%

-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

Declining volumeNegative COP

TroughDuring NRP

RecoveryN180

Value-Up

434K

Current Forecast Exceeds ESS#4

Re-forecastCommitment

7. Volume/COP Trend and Forecast

434K

7. First Half Results 2005– LCV Value-Up

30,732

58,064

237,380

208,604

171,763

139,745

100,824

339,944

305,484274,833

246,481

219,012

191,496164,575

134,993109,142

79,735

48,70924,118

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

400,000

1st. - 2nd. - 3rd. - 4th. - 5th. - 6th. - 7th. - 8th. - 9th. - 10th. - 11th. - 12th.

Actual Budget