Nissan Motor Co., Ltd.
December 2, 2009
Chief Operating Officer
Toshiyuki SHIGA
2009 Nomura CEO Forum
FY09 performance
China updates
Zero-emission leadership
1
2009 Nomura CEO Forum
Global total industry volume*
After rapid declines, market was recovering gradulally
• Governmental supports in developed markets
• Continuous growth in China
• Recovery from some developing markets
20.0
19.0
18.0
18.1
(million units)
17.0
16.0
17.5
17.1
16.3
16.0
15.0
15.2
14.0
13.0
13.7
13.6
FY08
3Q
FY08
4Q
12.0
11.0
0
2
FY07
3Q
FY07
4Q
FY08
1Q
FY08
2Q
*Nissan’s estimation
FY09
1Q
FY09
2Q
2009 Nomura CEO Forum
Nissan sales performance in FY09 first-half
34.35
(million units)
31.16
Japan
-10.0%
6.79
North
America
-21.4%
(5.61)
(US)
(-21.9%)
5.64
7.09
3
FY09
1H
*Nissan’s estimation
Europe
China
Others
1,902
-9.3%
2.18
9.46
FY08
1H
All
regions
Retail volume
Change vs.
FY08 1H
-14.7%
+22.5%
(thousand units)
TIV*
-6.7%
FY08
1H
Change vs.
FY08 1H
1,623
All
regions
285
Japan
-10.3%
519
(406)
North
America
(US)
(-21.4%)
249
Europe
-18.5%
332
China
+19.3%
238
Others
-28.5%
-14.6%
-22.2%
FY09
1H
2009 Nomura CEO Forum
Nissan production volume
Production volume recovered gradually
1,000
900
923
933
(thousand units)
800
803
700
708
600
620
500
520
400
300
200
100
0
FY08
1Q
FY08
2Q
FY08
3Q
FY08
4Q
FY09
1Q
4
FY09
2Q
2009 Nomura CEO Forum
Inventory management
Inventory volume remains at low level
(New vehicles)
800
700
(thousand units)
600
630
670
-26%
670
500
470
400
440
410
300
200
100
0
5
Mar
2008
Jun
Dec
Mar
2009
Jun
Dealer inventory, except some minor countries
Consolidated Nissan inventory, except some minor countries
Sep
2009 Nomura CEO Forum
FY09 outlook
Retail sales forecast and production plan
Retail volume
3,300
All
regions
612
Japan
1,000
(765)
-11.7%
(US)
(-10.6%)
Europe
-11.7%
712
508
FY08
6
0.0%
North
America
468
3,084
-3.3%
China
(thousand units)
(thousand units)
3,411
Production volume
Change vs.
FY08
Change vs.
FY08
3,170
All
regions
1,009
Japan
-3.9%
805
North
America
-7.3%
430
Europe
-4.4%
713
China
+30.1%
213
Others
+26.8%
+2.8%
+30.6%
Others
-14.0%
FY09*
FY08
FY09*
* Forecast
2009 Nomura CEO Forum
FY09 outlook
Revised on November 4, 2009
(billion yen)
FY08
(Previous - May 12)
*
(B)
*
(B)-(A)
FY09
FY09
(Actual)
(Forecast)
(Forecast)
8,437.0
6,950.0
7,000.0
-1,437.0
Operating profit
-137.9
-100.0
120.0
+257.9
Ordinary profit
-172.7
-200.0
20.0
+192.7
Net income
-233.7
-170.0
-40.0
+193.7
455.5
400.0
395.0
-60.5
5.4%
5.8%
5.6%
383.6
350.0
325.0
5.0%
4.6%
95.0
125.0
90.0
131.6
Net revenue
R&D
sales ratio
CAPEX
7
(A)
sales ratio
4.5%
FX rate
JPY/USD
assumption JPY/EUR
100.7
144.1
* Forecast
Variance
-58.6
-10.7
-12.5
2009 Nomura CEO Forum
FY09 upward revision
Major factors
Negative
Positive
„
„
Foreign exchange
„
„
95 -> 85 JPY/USD in 2H
Market situation
Sales volume
„
Governmental supports
„
Eco friendly car line-up
„
Russia
„
Flexible production control
„
Middle East
„
China
„
Recovery plan
„
Lower risk materialization
„
Used car price in U.S
„
Distressed suppliers etc.,
8
2009 Nomura CEO Forum
FY09 performance
China updates
Zero-emission leadership
9
2009 Nomura CEO Forum
Nissan sales (Passenger + LCV) in FY09
„
„
1Q : +9%, 2Q : +28%, 3Q : +72%
3Q YTD : 541 k units (+19%), FY09 forecast : 712 k units (+31%)
100.0
90.0
(thousand units)
80.0
70.0
+13.7%
60.0
30.0
+37.1%
66.3
61.7
50.0
40.0
+63.8%
+85.9%
+27.7%
+20.5%
+38.1%
63.3
+66.6%
75.2
62.9
57.9
-15.4%
39.5
71.1
43.4
20.0
10.0
0
10
Jan
March
Feb
April
May
June
July
(Variance : vs. last year)
Aug
Sep
2009 Nomura CEO Forum
Passenger model line-up
Sedan
Teana
SUV/MPV
Hatchback
Teana,
Teana, Sylphy,
Sylphy, Tiida
Tiida and
and Livina
Livina :: over
over 10
10 kk
units
sales
per
each
in
July
and
Sep.
units sales per each in July and Sep.
SUV：X-TRAIL
Qashqai
Sylphy
Tiida (HB)
MPV：Livina Geniss
Livina C-Gear
Tiida (Sedan)
Livina (2row)
New models in FY08
11
2009 Nomura CEO Forum
Key contributions to Dongfeng Nissan strong
performance
Impact from tax reduction for vehicles under 1.6L
Expansion of distribution to Tier 2 and 3 cities
e
3 promises for brand enhancement
12
2009 Nomura CEO Forum
Tax reduction for vehicles under 1.6L
Thanks to tax reduction, the market for vehicles under 1.6L is
expanding. Nissan’s sales volume is increased by not only under
1.6L but also over 1.6L thanks to good sales of Teana, X-Trail and
Qashqai. As a result, model mix remains at the same level.
DFL-PV under 1.6L model mix
Sales mix under 1.6L:
66% in 08（63％ in 09） Sylphy
Qashqai
Tiida
1.6L
Over 1.6L
Livina C-Gear
Tiida
13
Livina
2009 Nomura CEO Forum
Dongfeng Nissan sales network in cities
Dongfeng Nissan’s sales in cities
End of 2008 Actual：342 outlets
End of 2009 Target：390 outlets
End of 2010 Target：500 outlets
：Tier1 Cities
：Tier2 Cities
：Tier3 Cities
14
2009 Nomura CEO Forum
New brand tagline -Dongfeng Nissan 3 promises【３Promises】
1. Comfort Riding
-
Dynamic and efficient power
-
Roominess and comfort
-
Safety shield
2. Trustworthy Quality
-
Accurate and reliable design
-
Global benchmark manufacturing
-
100％ real time inspection
3. Warm Care
-
High quality of sales and services
-
Five promises after-sales services
-
Multi value-added services
15
2009 Nomura CEO Forum
China：Next steps
„
Passenger vehicle： PV to increase production volume
to meet market demand
„
Commercial vehicle： raise sales target to equalize last
year’s level
„
LCV： launch “NT400 Cabstar” , “Dongfeng Shuaike”
and “NV200”
„
Keep necessary investments for growth strategy
„
Continue Kaizen activities to enhance the quality of
products and sales & services
16
2009 Nomura CEO Forum
China：Continuous investments for growth (1)
Expansion of Huadu plant
Investment：RMB 5 billion
Start of operation：2012
Capacity：240k units (Capacity to increase to 600k units from the
current 360K)
*Started 3 shifts from October 2009 due to meet strong demand
17
2009 Nomura CEO Forum
China：Continuous investments for growth (2)
JATCO new plant (CVT production)
Location：Guangzhou, Guangdong
Start of operation：September 2009
Capacity：140K units/year
Investment：RMB 300 million
18
Xtronic CVT
2009 Nomura CEO Forum
China：Continuous investments for growth (3)
New engine plant
Location：Shiyan, Hubei Province
Start of operation：March 2009
Capacity：100K units/year
Engine type：ZD30 Engine
Applicable model：“NT400 Cabstar”
Investment： RMB 1.5 billion
ZNA new plant
Location：Zhenghou, Heian
Start of operation：2010
Capacity：120K units/year
Investment：RMB 1.0 billion
19
2009 Nomura CEO Forum
China：LCV 3 new models
„
NT400 Cabstar：Launched in October 2009
„
Dongfeng Shuaike ：
Launched in October 2009
„
NV200：
Launch in the early 2010
20
2009 Nomura CEO Forum
FY09 performance
China updates
Zero-emission leadership
21
2009 Nomura CEO Forum
Why Zero Emission ?
Environment Problem
- Global Warming -
Technology Innovation
- Battery -
Eco-Conscious Demand
- Social Trend -
Zero Emission Vehicle
22
2009 Nomura CEO Forum
Long-term targets for CO2 reduction
100
40
20
0
2000 2010
23
450ppm
2020
2030 2040 2050
Renewable Hydrogen
60
80
Renewable Electricity
80
90% Reduction
New vehicle Well-to-Wheel
CO2 emissions (%)
100
60
40
20
0
E
IC
V
HE
* 90% reduction is a trial calculation to keep CO2 emission at 450ppm level
EV
V
FC
Well-to-Wheel CO2 emission
Reduction by future powertrains (%)
IPCC 4th Report
• Temperature expected to rise by 2 degrees Celsius by 2100
• 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)
Zero emission
2009 Nomura CEO Forum
Reducing CO2 emissions
• ICE and HEV can only reach up to 50% CO2 reduction.
• Breakthrough needed to achieve CO2 reduction.
• EV (and FCV) is the most sustainable powertrain solution
for the future Æ Zero Emission.
CO2 Emission (%)
80
60
40
VVEL+DIG
Gasoline
Engines
Clean Diesel
Hybrid (HEV)
20
“KAIZEN Technologies”
EV
0
Zero Emission
24
2009 Nomura CEO Forum
Nissan has the in-house technology
Peace of mind with range display and
automatic charging-station updates
Nissan has developed the core
technologies on the battery,
motor and inverter
25
Nissan has pioneered the
Intelligent Transport System that
incorporates use of telematics
2009 Nomura CEO Forum
EV’s ability to meet global market needs
„
For global markets, acceptance of the EV requires reliability under
various conditions and comparable performance to current vehicles
26
2009 Nomura CEO Forum
LEAF overview
„
Seating capacity： 4-5 adults
„ Cruising range : over 160km (US LA4)
„ Motor : 80kW, 280Nm
„ Battery : 24kWh Li-ion (produced by AESC)
27
2009 Nomura CEO Forum
LEAF overview
„
„ EV dedicated IT support system
28
2009 Nomura CEO Forum
Various merits of EV
EV
Sustainable
mobility society
Zero-emission
Zero-emission
Charge
Charge at
at home
home
Quiet,
Quiet, for
for you
you and
and your
your
neighbors
neighbors
Electricity cost
Quietness
from start-up
to high-speed
（Charge using nighttime electricity
、1,000km/mth driving）
Equivalent
gasoline cost
of 100km/L
EV
EV unique
unique dynamic
dynamic
performance
performance
Stimulating
acceleration
Smooth start
1,200yen/mth
29
Filled-up every
morning
2009 Nomura CEO Forum
Cruising Range
*US LA4 mode
• Nissan LEAF: More than 160km* on full charge
• Over 80% of daily driving is below 100km/day worldwide.
• In Japan and UK, over 80% of daily driving is below 50km/day.
Utsunomiya
Percentage (%)
Maebashi
Mito
110km
130km
115km
Kofu 125km
110km
Tokyo
35km
Yokohama
Atami
Distance from Tokyo
Average range (km) per day
30
2009 Nomura CEO Forum
Infrastructure development
• Partnering with governments, agencies on infrastructure development
• Focus on developing an even distribution of charging units
• Quick charging serves to supplement home charging
Case in Kanagawa by 2014
Quick charge station every 5km (average)
Charging stations for
public use
5 km
1,000
5 km
Number of stations
5 km
5 km
100
100
Regular charge
23
Today
31
Quick charge
Quick charge
2014
2009 Nomura CEO Forum
Total cost of ownership
EV
ICE
Comparable initial
purchase cost
=
Car – Battery
Price of similar ICE car
Target is to be less than cost of gasoline
_
+
Monthly battery
payment
+
(Battery –
residual value)
Electric
charging
cost
<
Cost of gasoline
*Incentives contribute to lower the price tag
32
2009 Nomura CEO Forum
Battery Second-life : 4R Business
Reuse
euse
Refabricate
efabricate
Second-life use of batteries
with high residual capacity
Repackage to fit client’s needs
Resell
esell
Resell batteries for various applications
Examples of second-life application
Recycle
ecycle
Salvage raw materials
33
Repair parts
Leveling of renewable energy
2009 Nomura CEO Forum
Current Battery Production Plan
• 60,000 units/year
• Production by early 2012
Sunderland, UK
• 65,000 units/year by 2010
• Begun trial production in July
Flins, France
• 100,000 units/year
• Production from mid 2012
Zama, Japan
Portugal
• 60,000 units/year
• Production from mid 2012
Smyrna, USA
• 200,000 units/year
• Production by late 2012
34
2009 Nomura CEO Forum
Leveraging Global Partnerships
• Many governments and cities are showing interest to promote EV.
• More than 30 partnerships worldwide. (Nissan/Renault)
UK
Washington
District of Columbia
Ireland
Tennessee
Oregon
France
Switzerland
Portugal
Raleigh
Monaco
Japan
Israël
California
Arizona
China
Singapore
Australia
35
2009 Nomura CEO Forum
Nissan Renault Alliance
• Zero Emission strategy can be introduced based
on the benefit of Alliance Synergies.
Enrich peoples lives by attaining global
leadership in zero-emission mobility.
Alliance Synergies
9Shared Technology Development
9Shared Investment: Battery Production
9Leveraging Global Partnerships
36
2009 Nomura CEO Forum
EV line up
Portfolio of vehicles with separate brand identities
Luxury EV
37
2009 Nomura CEO Forum
A New Era for Mobility
Thank You.
39
2009 Nomura CEO Forum