Nissan s Global Strategy Nomura Investment Forum

Nissan s Global Strategy Nomura Investment Forum Toshiyuki Shiga Chief Operating Officer December 6, 2012

1 Changes Surrounding Auto Industry 2 3 4 Nissan s Global Growth Strategy Talent Management to Support Strategy Implementation Nissan Risk Management to Support Growth Strategy 2 (C) Copyright NISSAN MOTOR CO., LTD.

Environment Surrounding Global Auto Industry Major 3 + 1changes 1.Expanding Emerging Countries 2.Various Environmental Technologies 3.Downsizing /Lower Prices + 4 IT IT changes to to automobile society 3 (C) Copyright NISSAN MOTOR CO., LTD.

1.Expanding Emerging Countries (million units) 100.0 90.0 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0 5 54 11 Transition in global total industry volumes: Clear expansion of emerging markets 76 40% '99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '16 41 27 40% 日 米 欧 Japan/US/Euro Others その 他 60% BRIC 4 (C) Copyright NISSAN MOTOR CO., LTD.

US France Japan Russia Brazil China ドイツ 50 Indonesia 40 India 15 Potential future based on vehicle ownership per 1,000 people 160 250 中 国 600 米 国 800 Opportunity for further expansion in China and India, as populations are larger with fewer vehicles owned. 0 200 400 600 800 1,000 (unit) Source: JAMA World Motor Vehicle Statistics 2012 (data as of 2010) 5 (C) Copyright NISSAN MOTOR CO., LTD.

2.Dealing with Various Environmental Technologies EV FCV Zero-emission emission World Plug-in HEV HEV Diesel ICE/ Improved fuel economy Downsizing Japan: HEV/Fuel-efficient gasoline engine/cvt Europe: Diesel/Downsizing/DCT transmission US: High-output fuel-efficient gasoline engine/hev China: Fuel-efficient gasoline engine/ev recommended by government 6 (C) Copyright NISSAN MOTOR CO., LTD.

3.Global Trend of Downsizing and Lower Prices Structure of new car demand Replacement First Purchase Specific and and unique product specifications and and services for for customers in in emerging markets 7 7 (C) Copyright NISSAN MOTOR CO., LTD.

1 Changes Surrounding Auto Industry 2 3 4 Nissan s Global Growth Strategy Talent Management to Support Strategy Implementation Nissan Risk Management to Support Growth Strategy 8 (C) Copyright NISSAN MOTOR CO., LTD.

Nissan s Global Growth Strategy 1 Aggressive Strategy Strategy for emerging countries Strategy for lowerpriced/compact vehicles V-Platform 2 Leadership Strategy 3 Partnership Strategy Renault-Nissan Alliance 9 (C) Copyright NISSAN MOTOR CO., LTD.

Global Development Structure 29 overseas sites/offices 29 overseas 29 海 外 拠 点 sites/offices 事 務 所 Europe Vietnam China Taiwan United States NTCE( 88) DNTC NCIC NTV( 03) ZNTC( 93) DNTC( 03) NCIC( 04) YNTC( 80) NTCNA( 83) NTC NTCAF( 65) South Africa RNTBCI( 08) India NTCSEA( 03) Thailand NTCSEA-I( 10) Indonesia NTC-MEX( 94) Mexico NTC-BRA( 00) Brazil 10 (C) Copyright NISSAN MOTOR CO., LTD.

Emerging Countries Offensive: China Zhengzhou Plant (Henan province ) 2015(PV+LCV) 2 million units Market share 10% *Announced in July, 2011 Xiangyang Plant (Hubei Province ) Huadu Plant (Guangzhou City) LCV New plant (Dalian City) Tiida Venucia D50 11 (C) Copyright NISSAN MOTOR CO., LTD.

Emerging Countries Offensive: Partnership Strategy in India Plan to increase production capacity from 200K to 400K units Establish partnership to strengthen product competitiveness and promote localization Alliance Plant Local Partnership Europe Develop LCV Africa GCC Chennai 12 (C) Copyright NISSAN MOTOR CO., LTD.

Emerging Countries Offensive: Partnership strategy in Russia Alliance market share > 40% Nissan mid-term plan Market share (TIV): 10% or over Market share (TIV for foreign vehicles): 15% or over Sales volume: 400K or over Market Share Nissan Renault Avtovaz MS in Foreign TIV 40% 33% 8.3% 7.5% MS in Total TIV 5.9% 4.8% Datsun Infiniti 102K 161K Nissan FY10 FY11 FY12 FY13 FY14 FY15 FY16 ALMERA, 1 st local production model 13 (C) Copyright NISSAN MOTOR CO., LTD.

Emerging Countries Offensive: Alliance strategy in Brazil Increase Alliance market share to 13% by 2016 (Present: 6.5%) Curitiba Resende New Plant 14 (C) Copyright NISSAN MOTOR CO., LTD.

Emerging Countries Offensive: ASEAN 5 (Thailand, Indonesia, Malaysia, Philippines and Vietnam) Production Capacity FY12:220K units/year FY14~: 370K units/year ASEAN5-MTP 500K (Sales Unit) More than Triple 150K (FY10) (FY16) Production Capacity FY12:100K units/year FY14:250K units/year 6% 15% (Market Share) 15 (C) Copyright NISSAN MOTOR CO., LTD.

Emerging Countries Offensive: Lower-priced/Downsizing strategy Datsun brand to be launched in India, Indonesia and Russia 16 (C) Copyright NISSAN MOTOR CO., LTD.

Zero-emission Leadership units 50,000 45,000 40,000 35,000 M/C Cumulative Nissan LEAF sales:46 k units Density of quick-charging facilities Approx. 1,200 locations as of August 31, 2012 30,000 25,000 20,000 15,000 10,000 ( 台 ) 5,000 0 Nov_12 Sep 12 Jul_12 May_12 Mar_12 Jan_12 Nov_11 Sep_11 Jul_11 May_11 Mar_11 Jan_11 Nov_10 Sep_10 Jul_10 May_10 Mar_10 Jan_10 Nov_09 Sep_09 Jul_09 NISSAN LEAF Renault KANGOO Renault FLUENCE Renault ZOE MITSUBISHI imiev PEUGOT ION CITROEN C-ZERO FORD FOCUS EV 17 (C) Copyright NISSAN MOTOR CO., LTD.

Zero-emission Leadership 18 (C) Copyright NISSAN MOTOR CO., LTD.

Zero-emission Leadership Energy storage system Smart Community Introduction of EV/FCEV Become the leader in EV battery 19 (C) Copyright NISSAN MOTOR CO., LTD.

Zero-emission Leadership Evaluating joint development with Daimler for massproduction of fuel cell vehicles X-TRAIL FCV Mercedes-Benz B-class F-CELL 20 (C) Copyright NISSAN MOTOR CO., LTD.

Industry-leading environmental technology strategy Idle stop CVT Clean Diesel Super Charger NGP 21 (C) Copyright NISSAN MOTOR CO., LTD.

Difficult for one company to deal with ongoing changes Investment Customer needs Expanding Expanding Emerging Emerging Countries Countries Speed Various Various Environmental Environmental Technologies Technologies Government ties + Downsizing Downsizing /Lower /Lower Prices Prices 4 IT IT changes to automobile changes to automobile society society Human Resources Technology 22 (C) Copyright NISSAN MOTOR CO., LTD.

Importance of Partners Shared investment Utilization of local expertise Partnership Utilization of Local human resources Technological supplement Supplement Synergy Substitute Offset 23 (C) Copyright NISSAN MOTOR CO., LTD.

Our Partnerships 24 (C) Copyright NISSAN MOTOR CO., LTD.

1 Changes Surrounding Auto Industry 2 3 4 Nissan s Global Growth Strategy Talent Management to Support Strategy Implementation Nissan Risk Management to Support Growth Strategy 25 (C) Copyright NISSAN MOTOR CO., LTD.

Nissan Global Management Based on global organization/human affairs/culture, maximize Nissan group s overall performance with optimal allocation and full utilization of human resources and competencies Resource management Talent management Corporate culture Global HR Management (H/C, L/C) NAC (Corporate, by Function, by Region) HPP Nomination by Career Coaches Global Training (GET, LEAD, G-NRDP) *2 CDP for HPPs Succession Plan for Key Posts Commitment & Target CFT / V-up NISSAN WAY Diversity *3 *1 Identify Evaluate Develop Select *1) NAC: Nomination Advisory Council, *2) GET: Global Executive Training, *3) NRDP: Nissan Rotational Development Plan 26 (C) Copyright NISSAN MOTOR CO., LTD.

Diversity of Top Management Promote diversity at at top top management levels Non-Japanese Management Committee members 44% CVP or above @NML 24% 100 major global posts 49% 27 (C) Copyright NISSAN MOTOR CO., LTD.

1 Changes Surrounding Auto Industry 2 3 4 Nissan s Global Growth Strategy Talent Management to Support Strategy Implementation Nissan Risk Management to Support Growth Strategy 28 (C) Copyright NISSAN MOTOR CO., LTD.

Selling and General Administrative Expenses 20% SG&A expenses to sales ratio 15% 10% 5% 0% FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 1H 29 (C) Copyright NISSAN MOTOR CO., LTD.

Extended Adoption of CMF Extended adoption of CMF along with increased volume Economies of scale + Synergies from commonization CMF : 12% (2013) Challenge to 58% (2016) CMF: 12% (2013) CMF: 58% (2016) 30 (C) Copyright NISSAN MOTOR CO., LTD.

Increase Commonality Ratio with Renault Achieve commonality ratio of approximately 50% with Renault through CMF Current Commonality ratio 7% CMF Commonality ratio Above 50% *Vehicle turnover basis 31 (C) Copyright NISSAN MOTOR CO., LTD.

Total delivered Cost (TdC) Challenge Comprehensive cost competitiveness and enhancement activities including parts purchasing as well as vehicle assembly and logistics TdC Scope (Total delivered Cost) R&D Purchased parts Parts logistics Production Vehicle logistics Marketing & Sales Sales (Sales company) Standpoint of TdC R&D Procurement of materials and components Parts production Parts logistics Nissan in-house plants Carry-over/carry-across LCC utilization Number of molds Reviwing routes In/On-site Weight reduction Spec review Improved packaging for designing Quality (including warranty) Reduction of variations Localization Increased carryover/carry-across Improved packaging Fill rate improvement Inventory reduction Customs Takt time improvement Operating ratio improvement Yield improvement Optimized allocation In/On-site Localization Inventory reduction Bara-ka Improved packaging Fill rate improvement Logistics quality improvement Customs Optimized allocation Standpoints to be strengthened by TdC 32 (C) Copyright NISSAN MOTOR CO., LTD.

Summary Growth Growth Strategy 1. Aggressive strategy Emerging countries Compact vehicles/lower-priced vehicles 2. Leadership strategy Zero-emission Pure Drive 3. Partnership strategy 1. Optimization of fixed cost Investment efficiency High operating rate GFS 2. Management of selling and G&A cost 3. CMF 4. TdC Challenge Prudent Management Competitiveness/Tolerance 33 (C) Copyright NISSAN MOTOR CO., LTD.

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