nissan motor co., ltd.€¦ · 850 410 990 1,100 3,750 3,282 400 china +11.8% 960 600 1,220 (945)...

2010 Nomura CEO Forum

Nissan Motor Co., Ltd.

December 2, 2010

Chief Operating OfficerToshiyuki SHIGA

1 2010 Nomura CEO Forum

FY10 first-half performance/ FY10 outlook

Environment for auto industry

Nissan’s strategy for growth


3,383.4

4,319.1

9.0

94.9

208.4

149.7

+27.7%

+252.9%

334.9

(billion yen)

Net revenue Operating profit

Net income Free cash flow(Auto)

Key performance indicators: Financial results

215.7

FY101H

FY091H

FY101H

FY091H

FY101H

FY091H

FY101H

FY091H

+2,215.9%

Net debt(Auto)

293.3

-69.3

FY101H

FY091H


(th

ou

san

d u

nit

s)

Retail volume

FY101H

FY091H

+12.6%Europe

+15.3%Japan

+32.9%Others

Change vs. FY09 1HAll

regions +23.8%

503

277

580(445)

328

2,009

1,623

321

+51.4%China

+11.8%(+9.8%)

North America

(US)

FY10 first-half sales performance: Global

(millio

n u

nit

s)

TIV*

FY101H

FY091H

-3.5%Europe

+16.8%Japan

+18.4%Others

Change vs. FY09 1HAll

regions +14.5%

8.21

8.86

7.33(6.08)

2.54

35.93

31.38

8.99

+45.6%China

+8.0%(+8.3%)

North America

(US)

FY101H

*Nissan’s estimation


(billion yen)

Operating profit

315.1 +281.9Ordinary profit

315.5 +295.2

Non-operating

0.4Extraordinary

94.9

33.2

-61.7

Profit before tax

VarianceFY101H

FY091H

FX rate 88.9 JPY/USD113.8 JPY/EUR

95.5 JPY/USD133.2 JPY/EUR

-12.9

20.3

FY10 first-half financial performance

Net revenue 3,383.4

334.9

-19.8

4,319.1 +935.7

+240.0

-6.6 JPY/USD-19.4 JPY/EUR

Net income 208.4

Taxes -91.4

9.0

Minority interest -15.7

-11.6

0.3

+199.4

+27.7%

+252.9%

+848.8%

+1,455.9%

+2,215.9%

Effective tax rate (29.0%)(56.9%)

Change vs FY09 (%)


FY10 outlook

(th

ou

san

d u

nit

s)

+14.3%(+14.7%)

North America

(US)

+17.9%Europe

-2.4%Japan

+27.5%Others

vs. Prev.Outlook

Global +16.7%

860

510

1,205(945)

600

3,8003,515

(th

ou

san

d u

nit

s)

Retail volume Production volume

FY10PreviousOutlook

FY09 FY09

625

+27.1%China

+3.0%North

America

+24.4%Europe

+3.6%Japan

+7.5%Others

vs. Prev. Outlook

Global +8.0%

850

410

990

1,100

3,750

3,282

400

+11.8%China

960

600

1,220(945)

615

4,100

FY10RevisedOutlook

705

950

510

1,020

1,140

4,050

430

FY10PreviousOutlook

FY10RevisedOutlook

+1.2%(±0.0%)

+17.6%

+2.5%

+12.8%

vs. FY09

+7.9%

+11.6%

756

509

1,067(824)

630

553

+21.9%

+14.6%

+11.2%

+96.0%

+23.4%

+25.7%

vs. FY09

756

445

837

1,025

219


(billion yen)

Net revenue

Net income

Ordinary profit

Operating profit

*VarianceFY10

340.03.9%

425.0R&Dsales ratio

CAPEXsales ratio

FX rateassumption

* Forecast

4.8%

84.4 (2H: 80.0)

+1,252.7

+242.3

+227.6

8,770.0

270.0

450.0

485.0

(JPY/USD)

FY10 outlook

FY09

7,517.3

42.4

207.7

311.6

273.63.6%

385.55.1%

92.9

+173.4

111.9 (2H: 110.0)(JPY/EUR) 131.2



Current environment in the auto industry



Environment in the auto industry

Rapid growth in emerging countries

Ascent of Korean makers and powers from emerging

countries

Urgency for development in environment technology

Shift to alliances to compensate own weakness

Decline in competitiveness of Japanese industries in global

arenas

Affordability, down sizing


Global TIV evolution (actual and forecast)

80,000

60,000

40,000

20,000

00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16

Japan/US/Europe

(th

ou

san

d u

nit

s)


ドイツ中国

米国

Number of vehicles owned per 1,000 persons

1,0006004000 200 800 (units)

150150

800800

600600

250250

<50<50

Russia

Germany

US

India

China

Brazil

UK

Japan

France

Vehicle ownership in emerging countries with large populations, such as China and India, is still low, allowing opportunities to expand in those markets.


1850 1900 1950 2000 2050

10000

20000

30000

40000

Oil production has reached its peak

Calculation based on BP figures, WBCSD SMP reports, IEA WEO, and JPDA sources

Co

nsu

mp

tio

n (

M b

bl)

1908Ford Model T

1859First Modern Oil Well

Oil ConsumptionOil Consumption

Oil Consumption for VehiclesOil Consumption for Vehicles

Oil ProductionOil Production

2009 28400M bbl2009 28400M bbl

2009 28000M bbl2009 28000M bbl

The 21st centuryThe 20st centuryThe 19st century


Global warming: Long-term targets for CO2 reduction

40

60

80

100

0

20

2000 2010 2050

New

car’

s W

ell T

o W

heel

CO

2 em

issi

on

s (%

)

450ppm

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)

2020 2030 2040

90 %

Re

du

ctio

n


FCV

100

80

60

40

20

0

ICE HEV EVDiesel

Ren

ew

ab

le e

lect

rici

ty

Ren

ew

ab

le h

ydro

gen

Zero emissionZero emission

Well to wheel CO2 emission

The ultimate measures are zero emission vehicles and clean energy

New

car’

s W

ell T

o W

heel

CO

2 em

issi

on

s (%

)


Regenerating

Drive EnergyDrive Energy

Biofuel

Storage

Electrical energy

Era of Renewable EnergyTime to utilize electric energy that can be generated in a short amount of time

Fossil fuel



Environment in the auto industry



Significant changes in the automotive landscape

Emerging markets

Affordable, compact car

Environment technology

New growth strategies are now required


Strategies to address new challenges

Zero emission leadershipZero emission leadership

Global compact car：Challenge to “Monozukuri”Global compact car：Challenge to “Monozukuri”

Actions to address rapid growth in emerging marketsActions to address rapid growth in emerging markets


135 165

390

200618

240

179

297

363

458

545

756

960

160 185

885

Established the biggest automotive joint venture in China in 2003

Established the biggest automotive joint venture in China in 2003

>1,200

Zhengzhou DFL

Huadu DFL

Current

Xiangfang DFL

Production capacity(k units) (2 shifts)

CY12Xiangfang DFAC

CY06CY05 CY08CY07 CY09CY04 CY10F

Sales volume(k units)

Emerging market offensive: China


Alliance plant

EuropeEurope

Middle East

Middle East

AfricaAfricaChennaiChennai

Will start exporting to 100 countries including Europe from late 2010. Planned export volume for 2011 is 110,000 units.

Established 200 K new plantto immediately capture export business and domestic market

Established 200 K new plantto immediately capture export business and domestic market

Emerging market offensive: India


Emerging market offensive: Russia

Increase Alliance market share to 40%Increase Alliance market share to 40%

• St. Petersburg production

X-TRAIL Teana Murano

• Production capacity: 50 k units

Synergy with Avtovaz

・Platform commonization

・Mutual usage of production facilities


Affordable transportation: Global compact car

Challenge to “Monozukuri” in emerging countriesChallenge to “Monozukuri” in emerging countries

3 products by FY12

New XTRONIC CVT

3-cylinderSuper-charged engine

Accessible eco-friendliness

All are produced in LCC（Thailand, India, China and Mexico）

22 (C) Copyright NISSAN MOTOR CO., LTD. 2010 All rights reserved.

Nissan LEAFThe word’s first truly practical and

affordable 100% electric zero-emission car

Zero emission leadership


Zama, Japan

Smyrna, USA

Sunderland, UK

Aveiro, Portugal

500,000 battery and assembly capacities5 battery plants

500,000 battery and assembly capacities5 battery plants

Preparing for mass-marketing EVs

Oppama, Japan

Flins, France

2010 Nomura CEO Forum

Change Surrounding Industries

New mobility business• Car sharing• Cooperation with public

transportation facilities

New mobility business• Car sharing• Cooperation with public

transportation facilities

Business related to EV parts• Expansion of power electronics components

• Equipment related to infrastructure

Business related to EV parts• Expansion of power electronics components

• Equipment related to infrastructure

Charging infrastructure• Amplification of charging stations• Synergy with service industry

Charging infrastructure• Amplification of charging stations• Synergy with service industry

Management of electricity• Expansion of natural energy use• “Smart House”• Secondary use of battery

Management of electricity• Expansion of natural energy use• “Smart House”• Secondary use of battery

EV creates new business opportunities.


Nissan‘s approach for the environmentTechnology pillars

Low CO2

(Low-fuel Consumption)

Hybrid

NissanLEAF

EV Series

IdlingStop

CleanDiesel


Nissan’s approach for the environmentFirst PURE DRIVE vehicle: March

・ Nissan's newly developed 3-cylinder HR12DE engine

・ New-generation Xtronic CVT

・ "Idling Stop" system to help reduce gasoline consumption

・ Best-in-class fuel economy of 26.0km/L


Nissan’s approach for the environment

・ Clean diesel：Complies with Japan's stringent "Post New Long-term Regulations" emission standards（Sept 2008, MT model）

・ The X-TRAIL "20GT" is powered by the 2-liter "M9R" Clean Diesel engine with the addition of the new "20GT" 6-speed automatic transmission

Second PURE DRIVE vehicle: X-TRAIL


・ Nissan original one-motor two-clutch parallel hybrid system

・ Fuel economy of 19.0 km/L

Intelligent Dual Clutch Control

lithium-ion battery

Nissan’s approach for the environmentThird PURE DRIVE vehicle: Fuga Hybrid


・ Equipped with Nissan's new Idling Stop system

・ Due to its ECO motor, the engine restarts quicker and is more quiet, resulting in a natural driving feel and best-in-class fuel economy of 15.4km/L

Fourth PURE DRIVE vehicle: Serena

Nissan’s approach for the environment


4 key measures to mitigate impact from Yen appreciation and maintain NML Monozukuri competitiveness

Yen cost reduction• MFG cost reduction

• Reduction in fixed costs, G&A, R&D costs and NML expenses

Yen cost avoidance • Multi-sourcing, localization, imported parts, off-shore outsourcing

Yen revenue increase• Enhance sales volume in JPN market (15% in 2013)

• OEM sales

Yen cost absorption through pricing

• Pricing opportunities

• Branding


JPN

US

THAI

EURMEX

KOR

IND

Others

Product originAustralia

Middle East

North AmericaJapan

Europe

Multi-sourcing

32 2010 Nomura CEO Forum32

生き残る種というのは、最も強いものでもなければ、最も知的なものでもない。

最も変化に適応できる種が生き残るのだ。

（チャールズ・ダーウィン）

成長を続ける種というのは、変化に対応するだけでなく、自ら変化を起こし、自ら進化することができる種である。


nissan motor co., ltd.€¦ · 850 410 990 1,100 3,750 3,282 400 china +11.8% 960 600 1,220 (945)...

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