FY 2004 Third Quarter ReviewFY2006 Third Quarter Review1
February 2, 2007Nissan Motor Co., Ltd
FY 2006 Third QuarterReview
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review2
Agenda
• Third quarter news update
• Sales performance
• Financial results
• FY06 Outlook
• Sustainable growth
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review3
Third quarter news update
Oct 1) Introduced new Otti minicar for Japan
1) Launched the all-new Livina Geniss for China2) Released the new Infiniti G sedan / Nissan Skyline 3) Opened new Global Training Center
Nov
1) Announced “Nissan Green Program 2010”2) Established new global design studio in Japan3) Introduced the all-new AD and AD Expert light commercial
vehicles for Japan4) Introduced six compact cars equipped with the HR15DE engine
and XTRONIC CVT for Japan - Environmentally friendly technology that delivers higher fuel efficiency and lower emissions -
5) Opened new flagship dealer in Murayama, Japan
Dec
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review4
Agenda
• Third quarter news update
• Sales performance
• Financial results
• FY06 Outlook
• Sustainable growth
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review5
Global retail sales
0
500
1,000
2,000
2,500
1,500
FY04 3Q YTD FY05 3Q YTD
2,654+10.0%
2,412
(tho
usan
d un
its)
FY06 3Q YTD
2,504-5.7%
Sales performance (9 months)
3,000
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review6
Retail sales by region
0
200
300
500
400
GOM*
600
407-8.6%
EuropeJapan U.S.
498-13.1%
756-6.9%
843+2.4%
FY05 3Q YTD
FY06 3Q YTD
*GOM: Including Mexico and Canada
100
(tho
usan
d un
its)
Sales performance (9 months)
574
812 823
445
700
800
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review7
FY05 TIV Excl. Mini
FY06 TIV Excl. Mini
Retail sales by region : JapanSales performance (9 months)
0
10
20
40
50
(tho
usan
d un
its)
30
FY05 Mini
FY06 Mini
Apr May Jun Jul Aug Sep Oct Nov Dec
60
70
80
FY05 Excl. Mini
FY06 Excl. Mini
400
350
300
250
200
450
TIV Incl. Mini: 4.0 million (-3.0%)TIV Excl. Mini: 2.5 million (-7.2%)Nissan sales: 498K units (-13.1%)Nissan share: 12.5% (-1.5 points)
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review8
Order volume of new Skyline (As of Jan. 31)Sales performance
2
(tho
usan
d un
its)
Skyline (New)
Skyline (Old)
30 Days 60 Days 90 Days(selling days)
Total order volume: 10,002 unitsDec. Sales volume: 2,649 units(+720.1% VS FY05 Dec.)Dec. Share of the segment: 31.4% (+27.0 pts VS FY05 Dec.)
3
4
5
6
7
8
9
10
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review9
FY05 TIVFY06 TIV
Retail sales by region : U.S.Sales performance (9 months)
0
10
20
40
50
(tho
usan
d un
its)
30FY05 Truck
FY06 Truck
Apr May Jun Jul Aug Sep Oct Nov Dec
60
70
80
FY05 Car
FY06 Car
*DSR(day of selling rate) base
90
100
FY05 Infiniti
FY06 Infiniti
TIV: 12.6 million (-3.2%)Nissan sales: 756K units (-6.5%)Nissan share: 6.0% (-0.2 points)
1,400
1,200
1,600
1,800
2,000
1,000
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review10
Retail sales by region : U.S. – Third quarter
0
50
100
200
(tho
usan
d un
its)
150
FY05 Truck
FY06 Truck
FY05 Car
FY06 Car
*DSR(day of selling rate) base
FY05 Infiniti
FY06 Infiniti
FY05 FY06 FY05 FY06
210+3.8%
208
100-8.0%
112
110+17.5%
96
33+1.8%33
Sentra: +3.2%
Altima: +18.1% G35: +35.6%NISSAN
Infiniti
Sales performance (3 months)
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review11
Retail sales by region : EuropeSales performance (9 months)
0
100
200
400
500407
-8.6%445
(tho
usan
d un
its) 300
FY05 Russia
FY06 Russia
FY05 W. Europe
FY06 W. Europe
FY05 Others
FY06 Others
33-8.3%
36
323-14.1%
376
51+53.6%
33
FY05 FY06
Note
Navara
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review12
0
50
100
150
(tho
usan
d un
its)
200
250217
143+25.6%
114
116+12.7%
103
FY05 FY06
259+19.4%
FY05 LCV
FY06 LCV
FY05 PV
FY06 PV
Retail sales by region : ChinaSales performance (9 months)
Bluebird Sylphy
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review13
Thailand0
FY05 3Q YTD
FY06 3Q YTD
(tho
usan
d un
its)
Mexico
158-2.0%
Canada Taiwan M.East
20
60
40
80
100
120
140
162
55
30
55
94
Retail sales by region: GOM w/o ChinaSales performance (9 months)
Latin.A
61
160
52-5.0%
24-18.2%
32-42.4%
111+18.7%
64+5.1%
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review14
Agenda
• Third quarter news update
• Sales performance
• Financial results
• FY06 Outlook
• Sustainable growth
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review15
¥117.3/USD¥135.7/EUR
FY05 3Q
2,301.3
219.6
9.5%
FY06 3Q Change(billion yen)
Consolidated net revenue 2,342.8 +1.8%
Consolidated operating profit 183.1 -16.6%
Consolidated operating margin 7.8% -1.7points
FX rate ¥117.8/USD¥148.3/EUR
Financial results (3 months)
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review16
140.0
160.0
180.0
200.0
220.0
240.0
100.0
120.0
(bill
ion
yen)
FY063Q
O.P.183.1
FY053Q
O.P.219.6
Manufacturing expenses
-1.8
Sellingexpenses
(Incl. incentives)-8.6
Productenrichment & regulations
-23.8
Raw materialEnergy cost
-21.8
Purchasingcost
reduction+43.5
Price/Volumemix
-41.0
Warranty expenses
+11.2R&D
expenses+2.8
G&A others
-2.0
Operating profit variance analysisFinancial results (3 months)
Scope of consolidation
-0.1FOREX+5.1
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review17
Net income
¥117.3/USD¥135.7/EUR
FY05 3Q
2,301.3
219.6
9.5%
FY06 3Q Change(billion yen)
Consolidated net revenue 2,342.8 +1.8%
Consolidated operating profit 183.1 -16.6%
Consolidated operating margin 7.8% -1.7points
FX rate ¥117.8/USD¥148.3/EUR
Financial results (3 months)
Net non-operating -6.0
Income before tax 169.6 -21.2%
Ordinary profit 177.1 -15.6%
Net extraordinary -7.5
Minority interest -1.8104.4 -22.6%
-9.8
215.3
209.8
5.5
-8.8135.0
Tax -63.4-71.5
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review18
Net income
¥112.1/USD¥136.1/EUR
FY053Q YTD
6,792.3
631.2
9.3%
FY063Q YTD Change(billion yen)
Consolidated net revenue 6,877.2 +1.2%
Consolidated operating profit 531.7 -15.8%
Consolidated operating margin 7.7% -1.6points
FX rate ¥116.2/USD¥144.3/EUR
Financial results (9 months)
Net non-operating 6.3
Income before tax 525.3 -9.9%
Ordinary profit 538.0 -11.1%
Net extraordinary -12.7
Minority interest -14.9378.6 +3.5%
-25.7
582.8
605.5
-22.7
-28.4365.7
Tax -131.8-188.7
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review19
Operating profit variance analysisFinancial results (9 months)
(bill
ion
yen)
FY061H
O.P.348.6
FY051H
O.P.411.5
Sellingexpenses
(Incl. incentives)-4.8
Scope of consolidation
+4.5
350.0
400.0
450.0
500.0
550.0
600.0
650.0
700.0
FY063Q
YTDO.P.531.7
FY053Q
YTDO.P.631.2
FOREX+59.9
Raw material/Energy cost
-87.6
Price/Volume mix
-145.3
Productenrichment & regulations
-42.9
Purchasingcost
reduction+119.0
Manufacturing expenses
+2.5
R&Dexpenses
-4.2
Warrantyexpenses
+7.3
G&A others
-7.9
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review20
Agenda
• Third quarter news update
• Sales performance
• Financial results
• FY06 Outlook
• Sustainable growth
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review21
Opportunities
NISSAN Value-Up
Favorable exchange rates
Higher level of incentives
Mix and grade deterioration
High commodity prices
High energy prices
Higher interest rates
Risks
FY06 Outlook
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review22
FY06 Outlook
• Net income*
• Operating profit*
775 billion yen (down 12% from initial forecast of 880 billion yen)
460 billion yen (down 12% from initial forecast of 523 billion yen)
*Including the impact from fiscal year unification for December year-ending companies (ex. Europe, Mexico)
- Operating profit :+12 billion yen- Net income : +2 billion yen
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review23
Agenda
• Third quarter news update
• Sales performance
• Financial results
• FY06 Outlook
• Sustainable growth
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review24
New design center in Japan
Opened Nov. 2006
Investing for the future
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review25
Nissan Advanced Technology Center in Japan
Opening spring 2007
Investing for the future
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review26
New HQs (Japan & U.S.)
U.S.
Japan
Opening mid-2008
Opening Oct. 2009
Investing for the future
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review27
Sustainable growthNissan Green Program 2010
“Providing the Right technology to the Right market at the Right time with the Right value to the customer”
“Providing the Right technology to the Right market at the Right time with the Right value to the customer”
⇒ Gasoline engine evolution + CVT improvement (Global)
⇒ Clean Diesel Vehicle (Starting in Europe)
⇒ Bio Ethanol Vehicle (Mainly in US and Brazil)⇒ Hybrid Electric Vehicle (Starting from US and Japan)⇒ Fuel Cell Vehicle (Starting from US and Japan)
⇒ Electric Vehicle (Starting from Japan)
Accelerate widespread application of effective technologies Accelerate widespread application of effective technologies
FY 2004 Third Quarter ReviewFY2006 Third Quarter Review28
Sustainable growthNissan Green Program 2010
Introduced six compact cars in Dec. 25, 2006 for Japan
increased fuel efficiency, reduced CO2 and cleaner exhaust emissions
Introduced six compact cars in Dec. 25, 2006 for Japan
increased fuel efficiency, reduced CO2 and cleaner exhaust emissions
Introduction of gasoline engine with CO2 reduced to a comparable
level with current diesel engines from FY2010
Introduction of gasoline engine with CO2 reduced to a comparable
level with current diesel engines from FY2010
Introduction of “3 Liter Car” targeted during FY2010Introduction of “3 Liter Car” targeted during FY2010
Original Hybrid Electric Vehicle / Plug-in HEVOriginal Hybrid Electric Vehicle / Plug-in HEV
New Lithium-ion battery in developmentNew Lithium-ion battery in development