FY 2006 Third Quarter Review - nissan-global.com · 10 20 40 50 (thousand units) FY05 Truck 30 FY06 Truck Apr May Jun Jul Aug Sep Oct Nov Dec 60 70 80 FY05 Car FY06 Car *DSR(day of

FY 2004 Third Quarter ReviewFY2006 Third Quarter Review1

February 2, 2007Nissan Motor Co., Ltd

FY 2006 Third QuarterReview


Agenda

• Third quarter news update

• Sales performance

• Financial results

• FY06 Outlook

• Sustainable growth


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


Agenda




• FY06 Outlook



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


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)


574

812 823

445

700

800


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)


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


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


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



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


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


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%


Agenda




• FY06 Outlook



¥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)


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


Net income

¥117.3/USD¥135.7/EUR

FY05 3Q

2,301.3

219.6

9.5%

FY06 3Q Change(billion yen)






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


Net income

¥112.1/USD¥136.1/EUR

FY053Q YTD

6,792.3

631.2

9.3%

FY063Q YTD Change(billion yen)






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


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


Agenda




• FY06 Outlook



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


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


Agenda




• FY06 Outlook



New design center in Japan

Opened Nov. 2006

Investing for the future


Nissan Advanced Technology Center in Japan

Opening spring 2007



New HQs (Japan & U.S.)

U.S.

Japan

Opening mid-2008

Opening Oct. 2009



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


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

Documents

FY 2006 Third Quarter Review - nissan-global.com · 10 20 40 50 (thousand units) FY05 Truck 30 FY06 Truck Apr May Jun Jul Aug Sep Oct Nov Dec 60 70 80 FY05 Car FY06 Car *DSR(day of