NISSAN SHIFT the future · NISSAN SHIFT_the future 23rd. September, ... NISSAN 180 Commitment 2,7712,771 ... Frontier K/CFrontier K/C XterraXterra

1Paris Auto Show Investor Conference 23, September, 2004, Paris

NISSAN SHIFT_the future23rd. September, 2004 Paris

Paris Auto Show Investor Conference 2004

P. PELATAExecutive Vice PresidentPlanning Group, European OperationsNissan Motor Co.,Ltd.

P. PELATAExecutive Vice PresidentPlanning Group, European OperationsNissan Motor Co.,Ltd.


Today’s agenda

1. NISSAN 180 1. NISSAN 180 Oct 2004 - Sep 2005

4. NISSAN Value-Up4. NISSAN Value-UpFY2005 - FY2007

2. Quality2. Quality

3. European operations3. European operationsReady to grow


Today’s agenda






NISSAN 180

118800

20%20% Return on Invested CapitalReturn on Invested Capital

net automotive debt at end FY04with constant accounting standardsnet automotive debt at end FY04with constant accounting standards

% operating marginwith constant accounting standards% operating marginwith constant accounting standards

million additional units worldwidefrom FY01 (measured Oct 04 to Sept 05)million additional units worldwidefrom FY01 (measured Oct 04 to Sept 05)


Volume - Global (K units)

2,500

4,000

1999 2000 2001 2002 2003 2004 2005

3,000

3,500

2,5972,597

3,6003,600NISSAN 180 CommitmentNISSAN 180 Commitment

2,7712,771

3,0573,057+1 million+1 million3,3803,380

2,6332,6332,5302,530

cumulative 12 months(CY bases)cumulative 12 months(CY bases)

3,183(~Aug./04)

3,183(~Aug./04)


Volume - Regional

0

200

400

800

(tho

usa

nd u

nits

)

1,000

600

1,200

FY03FY03

Retail sales by regionRetail sales by region

FY04 ForecastFY04 Forecast

FY02FY02

Canada, Mexico: GOMGuam: USA

Japan

816816837837 870870934934

U.S.A.

726726856856

1000100010791079

Europe

474474542542538538563563

GOM

755755822822

97297210211021

N180 ForecastN180 Forecast


FY04

9

FY03

10

FY02

12

Global product launches FY05

(1st half)

2


CY05CY04

Product launches by region (1)

Japan

USA

NISSAN180 periodMuranoMurano

TiidaTiidaFugaFuga

Tiida LatioTiida LatioLafestaLafesta

NoteNoteMinivanMinivan

PathfinderPathfinderFrontier K/CFrontier K/C

XterraXterra

M45M45

QX56QX56

Frontier C/CFrontier C/C


CY05CY04Product launches by region (2)

Europe

GOM

NISSAN180 periodMuranoMurano

PathfinderPathfinderZ convZ conv

P/up truck K/CP/up truck K/C

Micra C+CMicra C+C“Tone”“Tone”

P/up truck C/CP/up truck C/CAltimaAltima

QuestQuest

TeanaTeanaMicraMicra

ArmadaArmadaMuranoMuranoQX56QX56

G35 coupeG35 coupe

B-sedB-sed

B-H/BB-H/B

PathfinderPathfinderXterraXterra

Luxury sedLuxury sed

P/up truckP/up truckPresagePresage


Japan: September 2004

TIIDA


Japan: October 2004

FUGA


TIIDA LATIO

Japan: October 2004


LAFESTA

Japan: December 2004


US: October 2004

PATHFINDER


US: November 2004

FRONTIER King Cab


US: November 2004

FRONTIER Crew Cab


Japan: January 2005

NOTE


XTERRA

US: Early 2005


Global market share

4%

5%

6%

8%

7%

FY00 FY02 FY03 FY04FY01

NISSAN 180NISSAN 180NRPNRP

FY99

4.7%4.7% 4.7%4.7%4.6%4.6%5.0%5.0%

5.3%5.3%


Global market share change from 1999 vs. COP margin

0.0

2.0

4.0

6.0

8.0

10.0

12.0

-3.0 -2.0 -1.0 0.0 1.0 2.0 3.0Global Market Share Change from 1999 (%)

CO

P M

argi

n (%

)

19991999

20002000

20012001

20022002

GMPSA

FORD

DCX

VW

HONDA

TOYOTABMW

20032003

HYUNDAI

◆ Nissan: ◆◆ Figures of competitors are in 2003.

RENAULT

20042004


Return on invested capital (auto)

0

5%

10%

15%

20%

25%

FY99 FY00 FY01 FY02 FY03

1.3%1.3%

12.7%12.7%

7.5%7.5%

19.8%19.8%

21.3%21.3%Target: 20%Target: 20%

COPFixed assets

+ Net working capital + Cash on hand

ROIC(Auto)

=


Incentives per unit in U.S. - Nissan

0

5001,0001,5002,0002,5003,0003,5004,0004,500

($ per unit)


ChryslerChrysler

GMGM

ToyotaToyota

HondaHonda

FordFord

NISSANNISSAN

FY03


Incentives per unit in U.S. - Infiniti


5001,0001,5002,0002,5003,0003,5004,0004,500

($ per unit)

MERCEDESMERCEDES

BMWBMW

INFINITIINFINITI

LEXUSLEXUS

FY04


Today’s agenda






Quality issues

139

110104

0

50

100

150

Fiscal Year 2003Fiscal Year 2004

154 153147

NISSAN Corp.AverageINFINITI

Initial Quality Survey (IQS) Results


Quality: A strong reaction on the way

Action Plans (U.S. example)

DESIGN• Swift response to design defects

MANUFACTURING•Supporting staff from Japan

- 200 engineering, production, R&D staff to USA• Cross functional activities for quality control• Boosting level of shop floor management

(Gemba-kanri)


Measurements / Awards

Winning awards

Strategic Vision- Total Quality Index TM

Near-Luxury Car: Infiniti G35*2003 winner

Mid-Size SUV: MuranoNear-Luxury SUV: Infiniti FX

Infiniti : Highest scoring brands in ties with Mercedes Benz

Auto Pacific- Vehicle safety awards (VSA)

Passenger CarsEntry Luxury Car: Maxima

Light trucksLarge sport utility: Armada

*Titan: still in an early stage to gather large numbers for the study.


Today’s agenda






400 99 00 01 02 03 0504

[K unit]

425

475

500

525

550

575

Phase IPhase I Phase IIPhase II Phase IIIPhase III

Retail volume in Europe

06 07

542542 538538


6,500 99 00 01 02 03 0504

[M€][M€]

7,000

7,500

8,000

8,500

9,000

9,500


Turnover in Europe

06

+13%+13%9,128 M€9,128 M€

07


-800 99 00 01 02 03 0504

[M€][M€]

-600

-400

-200

0

200

400375M€375M€ (4.1%)(4.1%)


COP in Europe

06 07


99 00 01 02 03 0504Phase IPhase I Phase IIPhase II Phase IIIPhase III

06 07400

[K unit]

425

475

500

525

550

575

Get ready to growGet ready to growBack to profitableBack to profitable

Ready to grow

Retail volumeRetail volume

COPCOP

TurnoverTurnover


New products for Europe

MURANO



PATHFINDER



FRONTIERPhoto: US model



FRONTIER Crew Cab Photo: US model



MICRA C+C



TONE


Today’s agenda







NISSAN Value-Up commitments

4.2 million units global sales4.2 million units global sales


Volume - Global (K units)

2,500

3,000

3,500

4,000

4,500

1999 2000 2001 2002 2003 2004 2005 2007

2,5972,597

3,6003,600NISSAN 180 CommitmentNISSAN 180 Commitment

2,7712,771

3,0573,057

≈+800 k≈+800 k

3,3803,380

2,6332,6332,5302,530

4,2004,200NISSAN Value-Up CommitmentNISSAN Value-Up Commitment

2006

≈+800 k≈+800 k


FY02 FY03 FY04

12 10 9

FY05 – FY07FY05 – FY07

2828

Global product launches


Global market share

4%

5%

6%

8%

7%

FY00 FY02 FY03 FY04 FY05 FY06 FY07FY01

NISSAN 180NISSAN 180 NISSAN Value-UpNISSAN Value-UpNRPNRP

FY99

4.7%4.7% 4.7%4.7%4.6%4.6%5.0%5.0%

5.3%5.3%

7.0%7.0%

Assumption Global TIV = 60 million cars(DRI forecast =66 million cars)



Double digit COP marginDouble digit COP margin

4.2 million units global sales4.2 million units global sales




FY99

Consolidated operating profit margin

0

6%

8%

12%

10%

4.75%4.75%

7.9%7.9%

10.8%10.8%

4%

2%1.4%1.4%

11.1%11.1% NISSAN Value-UpNISSAN Value-UpDouble-digit

NISSAN Value-UpNISSAN Value-Up



Return on invested capital ≧ 20%Return on invested capital ≧ 20%

Double digit COP marginDouble digit COP margin

Global sales of 4.2 million unitsGlobal sales of 4.2 million units




FY99

NISSAN Value-UpNISSAN Value-Up

Return on invested capital (auto)

0

10%

15%

25%

20%

7.5%7.5%

19.8%19.8%

5%

21.3%21.3%

12.7%12.7%

1.3%1.3%

At or 20% above


Global market share change from 1999 vs. COP margin

0.0

2.0

4.0

6.0

8.0

10.0

12.0

-3.0 -2.0 -1.0 0.0 1.0 2.0 3.0Global Market Share Change from 1999 (%)

CO

P M

argi

n (%

)

19991999

20002000

20012001

20022002

GMPSA

FORD

DCX

VW

HONDA

TOYOTABMW

20032003

HYUNDAI

◆ Nissan: ◆◆ Figures of competitors are in 2003.

RENAULT

2007200720042004


NISSAN Value-Up breakthroughs

Infiniti global tier-1 luxury brandInfiniti global tier-1 luxury brand


Fast-growing market

0

1

2

3

4

5

99 00 01 02 03 04 05 06 07

(M unit)

MB

BMW

Lexus

others

+19%

+25%Global TIV:+6%

Global TIV:+5 ~15%


Infiniti tier-1 luxury brand

2003 2007 2010

Cadillac

Acula

AudiJaguar

Land rover

Tier-1Tier-1

Infiniti

LexusMBBMWPorsche


Infiniti goes global

ChinaChina



Infiniti global tier-1 luxury brand

Geographic expansion





RussiaRussia

EgyptEgypt

AfricaAfrica

ASEANASEAN

Middle East

Middle East

ChinaChinaIndiaIndia

PakistanPakistan





Leading Competitive Countries






Strong increase of our sourcing in LCC


Today’s agenda

1. Results 2003 & Budget 20041. Results 2003 & Budget 2004

2. Securing NISSAN 180 2. Securing NISSAN 180

3. Deploying NISSAN Value-Up3. Deploying NISSAN Value-Up

Oct 2004 - Sep 2005

FY2005 - FY2007

4. Improving Planning Activities in NISSAN4. Improving Planning Activities in NISSAN

Documents

NISSAN SHIFT the future · NISSAN SHIFT_the future 23rd. September, ... NISSAN 180 Commitment 2,7712,771 ... Frontier K/CFrontier K/C XterraXterra