nissan’s global strategy... nissan’s global strategy nomura investment forum toshiyuki shiga...

www.nissan-global.com

Nissan’s Global StrategyNomura Investment Forum

www.nissan-global.com

Toshiyuki ShigaChief Operating Officer

December 6, 2012

www.nissan-global.com 2 (C) Copyright NISSAN MOTOR CO., LTD.2012 All rights reserved.

Changes Surrounding Auto Industry Changes Surrounding Auto Industry 1

４Nissan Risk Management to Support Growth Strategy

Nissan’s Global Growth Strategy２

Talent Management to Support Strategy ImplementationTalent Management to Support Strategy Implementation３


１．Expanding Emerging

Countries

１．Expanding Emerging

Countries

３．Downsizing /Lower

Prices

３．Downsizing /Lower

Prices

２．Various Environmental

Technologies

２．Various Environmental

Technologies

Environment Surrounding Global Auto IndustryMajor 3 ＋ 1 changes

④ IT changes to

automobile society

④ IT changes to

automobile society＋


0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

100.0

'99 '00 '01 '02 '03 '04 '05 '06 '07 '08 '09 '10 '11 '16

日米欧

その他

54

76 40％

(million units)

11

4160％

27

5

Transition in global total industry volumes: Clear expansion of emerging markets

Transition in global total industry volumes: Clear expansion of emerging markets

１．Expanding Emerging Countries

40%

BRIC

Japan/US/Euro

Others


ドイツ中国

米国

1,0006004000 200 800 (unit)

160160

800800

600600

250250

5050

Russia

US

India

China

Brazil

Japan

France

Source: JAMA “World Motor Vehicle Statistics 2012” (data as of 2010)

Opportunity for further expansion in China and India, as populations are larger with fewer vehicles owned.

Indonesia 4040

1515

Potential future based on vehicle ownership per 1,000 people

Potential future based on vehicle ownership per 1,000 people


２．Dealing with Various Environmental Technologies

ZeroZero--emission Worldemission World

Japan: HEV/Fuel-efficient gasoline engine/CVTEurope: Diesel/Downsizing/DCT transmissionUS: High-output fuel-efficient gasoline engine/HEVChina: Fuel-efficient gasoline engine/EV recommended by government

ICE/ Improved fuel economy

Diesel

EVFCV

Plug-inHEV

Downsizing

HEV


7

Structure of new car demandStructure of new car demand

３．Global Trend of Downsizing and Lower Prices

Specific and unique product specifications and services for customers in emerging markets

Specific and unique product specifications and services for customers in emerging markets

First PurchaseFirst Purchase

Replacement Replacement


Nissan’s Global Growth StrategyNissan’s Global Growth Strategy

1


Changes Surrounding Auto Industry

２



Nissan’s Global Growth Strategy

③ Partnership Strategy③ Partnership Strategy

② Leadership Strategy② Leadership Strategy

Strategy for emerging countries

Strategy for lower-priced/compact vehicles

Renault-Nissan AllianceRenault-Nissan Alliance

① Aggressive Strategy① Aggressive Strategy

V-Platform


NTCE(’88)

DNTC

NTC-MEX(’94)

YNTC(’80)

RNTBCI(’08)NTCAF(’65)

NTCNA(’83)

NCICNTV(’03) ZNTC(’93) DNTC(’03) NCIC(’04)

South Africa India

United States

Mexico Brazil

Europe Vietnam China Taiwan

NTC

NTC-BRA(’00)Thailand

NTCSEA(’03)

Global Development Structure

29 海外拠点・事務所

IndonesiaNTCSEA-I(’10)

29 overseas sites/offices29 overseas sites/offices

NTCE(’88)

DNTC

NTC-MEX(’94)

YNTC(’80)

RNTBCI(’08)NTCAF(’65)

NTCNA(’83)

NCICNTV(’03) ZNTC(’93) DNTC(’03) NCIC(’04)

South AfricaSouth Africa IndiaIndia

United StatesUnited States

MexicoMexico BrazilBrazil

EuropeEurope VietnamVietnam ChinaChina TaiwanTaiwan

NTC

NTC-BRA(’00)ThailandThailand

NTCSEA(’03)

Global Development Structure

29 海外拠点・事務所

IndonesiaIndonesiaNTCSEA-I(’10)

29 overseas sites/offices29 overseas sites/offices


Emerging Countries Offensive: China

New plant（Dalian City）

Zhengzhou Plant（Henan province ）

Xiangyang Plant（Hubei Province ）

Huadu Plant (Guangzhou City）

＊Announced in July, 2011

LCV Tiida

2015(PV+LCV)2015(PV+LCV)•2 million units•Market share １０%

Venucia D50


Plan to increase production capacity from 200K to 400K unitsEstablish partnership to strengthen product competitiveness and

promote localization

Plan to increase production capacity from 200K to 400K unitsEstablish partnership to strengthen product competitiveness and

promote localization

Alliance Plant

Develop LCVDevelop LCVEuropeEurope

GCCGCC

AfricaAfricaChennaiChennai

Local Partnership

Emerging Countries Offensive:Partnership Strategy in India


33%

40%

Market Share

NissanRenault

Avtovaz

Alliance market share ＞ 40%Alliance market share ＞ 40%

ALMERA, 1st local production modelFY10 FY16FY15FY14FY13FY12FY11

102K161K

Nissan

InfinitiDatsun

Nissan mid-term plan

• Market share (TIV): 10% or over• Market share (TIV for foreign vehicles): 15% or over • Sales volume: 400K or over

MS in Foreign TIV

MS in Total TIV

4.8%5.9%

7.5%8.3%

Emerging Countries Offensive:Partnership strategy in Russia


Increase Alliance market share to 13% by 2016(Present: 6.5%)

Increase Alliance market share to 13% by 2016(Present: 6.5%)

ResendeNew PlantResende

New Plant

CuritibaCuritiba

Emerging Countries Offensive:Alliance strategy in Brazil


Emerging Countries Offensive:ASEAN 5 (Thailand, Indonesia, Malaysia, Philippines and Vietnam)

(FY10) (FY16)

150K

500K

6% 15%

(Sales Unit)

(Market Share)

More than TripleMore than Triple

ASEAN5-MTPProduction CapacityFY12：220K units/yearFY14～： 370K units/year

Production CapacityFY12：100K units/yearFY14：250K units/year


Emerging Countries Offensive:Lower-priced/Downsizing strategy

Datsun brand to be launched in India, Indonesia and Russia


0

5,000

10,000

15,000

20,000

25,000

30,000

35,000

40,000

45,000

50,000

Jul_

09

Sep_

09

Nov_0

9

Jan_10

Mar_1

0

May_1

0

Jul_10

Sep_

10

Nov_1

0

Jan_11

Mar_1

1

May_1

1

Jul_11

Sep_

11

Nov_1

1

Jan_12

Mar_1

2

May_

12

Jul_12

Sep 1

2

Nov_1

2

(台)

NISSAN LEAF Renault KANGOO Renault FLUENCERenault ZOE MITSUBISHI iMiEV PEUGOT IONCITROEN C-ZERO FORD FOCUS EV

Zero-emission Leadership

M/C Density of quick-charging facilities

Approx. 1,200 locations as of August 31, 2012

Cumulative Nissan LEAF sales：46 k unitsunits



Energy storage system

Introduction of EV/FCEV

Smart Community

Become the leader in EV battery


Mercedes-Benz B-class F-CELLX-TRAIL FCV

Zero-emission LeadershipEvaluating joint development with Daimler for mass-

production of fuel cell vehiclesEvaluating joint development with Daimler for mass-

production of fuel cell vehicles


Industry-leading environmental technology strategy

NGP

Idle stop CVT Clean Diesel

Super Charger


Difficult for one company to deal with ongoing changes

SpeedSpeed

InvestmentInvestment

Human ResourcesHuman

Resources

TechnologyTechnology

Governmentties

Governmentties

Customerneeds

Customerneeds

＋ ④ IT changes to automobile society

④ IT changes to automobile society

Expanding Emerging

Countries

Expanding Emerging

Countries

Downsizing

/Lower Prices

Downsizing

/Lower Prices

Various Environmental

Technologies

Various Environmental

Technologies


SupplementSupplement SynergySynergy SubstituteSubstitute OffsetOffset

Importance of Partners

PartnershipUtilization of

local expertise

Shared

investment

Technological

supplement

Utilization

of Local

human resources


Our Partnerships



1



２



Nissan Global ManagementBased on global organization/human affairs/culture, maximize Nissan group’s overall performance with optimal allocation and full utilization of human resources and competencies

Corporate culture

Talent management

Resource management

Commitment & Target

Global HR Management (H/C, L/C)

HPP Nomination by Career Coaches

Diversity

CFT / V-up

NISSAN WAY

NAC (Corporate, by Function, by Region)

Global Training (GET, LEAD, G-NRDP)

＊１

＊２

*1) NAC: Nomination Advisory Council, *2) GET: Global Executive Training, *3) NRDP: Nissan Rotational Development Plan

CDP for HPPs

Succession Plan for Key Posts

Identify

Develop

Select

Evaluate＊3


Non-Japanese

Management Committee members 44%

CVP or above @NML 24%

100 major global posts 49%

Diversity of Top Management

Promote diversity at top management levelsPromote diversity at top management levels



1



２



SG&A expenses to sales ratio20%

15%

10%

5%

0%FY

2005FY

2006FY

2007FY

2008FY

2009FY

2010FY

2011FY

20121H

Selling and General Administrative Expenses


Extended adoption of CMF along with increased volume → Economies of scale ＋ Synergies from commonization

CMF : 12% (2013) ⇒ Challenge to 58% (2016)Challenge to 58% (2016)

Extended Adoption of CMF

CMF: 58%

(2016)

CMF: 12%

(2013)


CMF

Achieve commonality ratio of approximately 50% with Renault

through CMF

Current

CommonalityratioAbove 50%

Commonalityratio7%

*Vehicle turnover basis

Increase Commonality Ratio with Renault


Total delivered Cost (TdC) ChallengeComprehensive cost competitiveness and enhancement activities including parts purchasing as well as vehicle assembly and logistics

Nissan in-house plantsParts logisticsR&D

Procurement of materials and components

Parts production

Optimized allocation

In/On-site

Reduction of variations

Improved packaging for designing

Weight reduction

Quality (including warranty)

Carry-over/carry-across

Spec review

Number of molds

Takt time improvement

Yield improvement

Localization

Optimized allocation

In/On-site

Operating ratio improvement

Customs

Fill rate improvement

Improved packaging

Inventory reduction

Increased carry-over/carry-across

Localization

LCC utilization

Customs

Fill rate improvement

Improved packaging

Inventory reduction

Logistics quality improvement

Reviwing routes

Bara-ka

Standpoints to be strengthened by TdC

Standpoint of TdC

Marketing&

Sales

Sales(Sales

company)

ProductionParts logistics

Vehiclelogistics

PurchasedpartsR&D

TdC Scope (Total delivered Cost)


SummaryG

row

th

Competitiveness/Tolerance

Growth StrategyGrowth Strategy

Prudent M

anagement

Prudent M

anagement

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. CMF4. TdC Challenge

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