FY04 Financial Results NISSAN Value-Up

FY04 financial results NISSAN Value-Up

April 25, 2005

President and CEO Carlos Ghosn

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Agenda

FY04 sales performance FY04 financial performance FY05 outlook NISSAN 180 progress NISSAN Value-Up

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1 FY04 Global retail sales volume

3,400 3,388 3,200 +10.8% 1990: Record sales 3,107 3,000 3,057

2,800 2,771 2,600

Thousand units 2,633 2,597 2,400 2,530

2,200 FY99 FY00 FY01 FY02 FY03 FY04

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FY04 Global production

3,400 3,378 3,200 +10.2% Record production 3,085 3,000 3,064

2,800 2,737 2,600

Thousand units 2,614 2,400 2,402 2,469 2,200 FY99 FY00 FY01 FY02 FY03 FY04

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2 FY04 sales performance Japan

Fuga 1,000 “RJC Car of the Year” 983 800 837 848 +1.4% 600

400

Thousand units Industry TIV: 5.8 million (-1.2%) March Cube 200 Nissan share: 14.6% (+0.4 point)

0 Tiida Note FY03 FY04 4 models in top 10 monthly sales ranking

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FY04 sales performance United States Frontier 1,000 1,013 +18.4% 800 859

600

Pathfinder 400

Thousand units Industry TIV: 16.9 million (+0.4%) 200 Nissan share: 6.0% (+0.9 point) Titan Altima 0 FY03 FY04

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3 Infiniti sales performance

140

120 124 132 +6.5% 100

80 96 78 60 76 71 Thousand units

0 FY99 FY00 FY01 FY02 FY03 FY04

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FY04 sales performance Europe

1,000

800 Industry TIV: 19.8 million (+4.2%) Nissan share: 2.7% (-0.2 point) 600 X-TRAIL 542 544 400 +0.3% Thousand units 200

0 Pickup FY03 FY04

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4 FY04 sales performance General Overseas Markets*

1,000 983 800 +19.5% 822

600 Teana “Car of the Year 2005”

400 Thousand units 200 China sales: 194,000 (+92.7%) Including Dong Feng LCVs

0 FY03 FY04

*Including Mexico and Canada

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Agenda

FY04 sales performance FY04 financial performance FY05 outlook NISSAN 180 progress NISSAN Value-Up

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5 FY04 financial performance

(Billion yen) FY03 FY04 Change

Consolidated net revenue 7,429.2 8,576.3 +15.4%

Consolidated operating profit 824.9 861.2 +4.4%

Operating margin 11.1% 10.0% -1.1points

FOREX ￥107.6/$1 for FY04 ￥134.4/€1

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FY04 financial performance Impact on operating profit

Sales expenses -114

1,000

900 Billion yen Billion Forex -78 800 FY03 FY04 O.P. Volume/mix +284 O.P. 824.9 Scope of 861.2 consolidation +31

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6 Incentives in the U.S.: Autodata

5,000

4,000 GM Chrysler

3,000 For d NISSAN 2,000 $ per unit Toyota 1,000 Honda

0 1999 2000 2001 2002 2003 2004 2005

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Incentives in the U.S.: CNW

For d 5,000 GM

4,000 Chrysler Toyota 3,000 Honda

2,000 $ per unit

1,000 NISSAN

0 1999 2000 2001 2002 2003 2004 2005

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7 Comparison of incentives

5000 For d GM 4000 CNW Chrysler 3000 Toyota 2000 Honda 1000 NISSAN 0 5000 Autodata GM $ per unit 4000 Chrysler 3000 For d 2000 NISSAN 1000 Toyota Honda 0 1999 2000 2001 2002 2003 2004 2005

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FY04 financial performance Impact on operating profit Sales Product expenses enrichment -114 -92

1,000 Manufacturing expenses -15 G&A Purchasing R&D and 900 cost expenses others reduction -44 -25.7 Warranty Billion yen Billion +131 Forex expenses -78 -41 800 FY03 Volume/mix FY04 OP +284 OP 824.9 Scope of 861.2 consolidation +31

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8 FY04 financial performance Operating profit by region Billion yen

JAPAN U.S. (+ CA N ) 400

352.5 341.1 351.8 379.7 200

0 FY03 FY04 FY03 FY04

EUROPE GOM (Including Mexico) 400

200 84.8 49.2 56 66 0 FY03 FY04 FY03 FY04

Eliminations: FY03 +5.4, FY04: -0.4

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FY04 financial performance

(Billion yen) FY03 FY04 Change Net non-operating expenses -15.2 -5.5 +9.7 Financial costs -15.7 -10.4 +5.3 Ordinary profit 809.7 855.7 +5.7% Net extraordinary losses -73.2 -62.5 +10.7 Net income before tax 736.5 793.2 +7.7% Taxes -219.0 -258.0 -39.0 Minority interests -13.8 -22.9 -9.1 Net income 503.7 512.3 +1.7% FOREX for FY04 ￥107.6/$1, ￥134.4/€1

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9 Net cash flow (automotive)

Billion yen 800

700 Investing activities 600 -450.7

500 Operating activities 400

Cash +879.2 Financing 300 activities -209.1 200 Free cash flow 100 205.8 0 -13.6 Net debt at Net cash at -100 beginn ing of FY03 end of FY04 Debt

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FY04 financial performance Net automotive debt

2,500 2,100 2,000

1,500 1,349.7 Under new accounting 1,000 952.7 standards

Billion yen Billion 500 431.7

0 13.6 -8.6 -205.8 -215.9 -453.5 FY98FY99 FY00 FY01 FY02 FY03 FY04

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10 FY04 financial performance Return on invested capital (ROIC)

25% 21.3% 20.1%* 20% 19.8%

15% 12.7%

10% COP 7.5% ROIC = Fixed assets 5% (Auto) + Net working capital + Cash on hand 1.3% 0 FY99 FY00 FY01 FY02 FY03 FY04

*Same scope of consolidation as P&L, excluding change of cash compared to FY03

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FY04 financial performance Dividend policy

40 40 34 30 29 24 20 19 14

10 7 8 Dividend per share / yen per share Dividend

0 0 FY99 FY00 FY01 FY02 FY03FY04 FY05* FY06* FY07*

*Forecast

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11 Agenda

FY04 sales performance FY04 financial performance FY05 outlook NISSAN 180 progress NISSAN Value-Up

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FY05 outlook

3,500 3,618 3,000 3,388 +6.8% 3,057 2,500 2,771 2,597 2,000

1,500

Thousand units 1,000 TIV assumption: 61 million (+0.7%)

500

0 FY01 FY02 FY03 FY04 FY05*

*Forecast

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12 FY05 new models

Japan Europe Serena 350Z Roadster Otti Murano Compact wagon Pathfinder M-class sedan U.S./Canada Navara Minicar Micra C+C GOM Quest Infiniti MLafesta Pathfinder Tiida hatchback Interstar Navara Tiida sedan Xterra

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FY05 outlook 3,618 +6.8% 3,500

3,000 3,388 1,088 +10.7% GOM 3,057 (+Mexico, Canada) 2,500 2,771 2,597 +1.1% Europe 2,000 550

1,500 1,047 +3.3% U.S.

Thousand units 1,000 TIV assumption: 61 million (+0.7%)

500 933 + 10% Japan 0 FY01 FY02 FY03 FY04 FY05*

*Forecast

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13 FY05 outlook

Risks Opportunities

Volatility in exchange NISSAN Value-Up rates Higher interest rates Higher commodity prices Higher energy prices Higher level of incentives Uncertainty on level of growth in U.S. and Japanese markets

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FY05 outlook

(Billion yen) FY04 FY05(FC) Change Consolidated net revenue 8,576.3 9,000 +4.9% Consolidated operating profit 861.2 870 +1.0% Ordinary profit 855.7 860 +0.5% Net income 512.3 517 +0.9% CAPEX 477.5 540 +13.1% R&D expenses 398.1 450 +13.0% ROIC 20.1% 20% ---- or above

FOREX ￥105/$1 for FY05 ￥130/€1

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14 Agenda

FY04 sales performance FY04 financial performance FY05 outlook NISSAN 180 progress NISSAN Value-Up

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NISSAN 180 commitments

1 million additional units worldwide

9 8 % operating margin

9 0 net automotive debt at end FY04

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15 Progress toward NISSAN 180 sales

4,000 3,597

3,000

2,000 1,809 1,403

Thousand units 1,120 1,000 849 553 274 0 Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep

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NISSAN 180 Market coverage expansion

Kubistar 350Z Armada Titan Full-size SUV & Truck

P r i m as t ar I n t er st a r LCVs Moco Clipper Mini Mu rano FX35/4 5 Crossovers

Teana

Tiida Note New Compacts

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16 Agenda

FY04 sales performance FY04 financial performance FY05 outlook NISSAN 180 progress NISSAN Value-Up

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Track toward great company

NRP NISSAN 180 NISSAN Value-Up

“Revive our “Complete revival “Value up with company ” on track for sustained profitable growth” performance” Commitments • Profitability in FY00 • +1M units by 9/05 • 4.2M units in FY08 • Operati ng profit • 8% operating profit • Top level operati ng margin>4.5% in FY02 margin profit margin • 50% debt reduction • 0 automotive debt • ROIC average 20% by FY02

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17 Evolutionary plan Core elements of NISSAN 180

Maximized More More alliance revenue Less quality with cost and Renault speed

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NISSAN Value-Up commitments

Profit commitment Top level operating profit margin among global automakers in FY05-07

To sustain performance

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18 NISSAN Value-Up commitments Top level operating profit margin

12 2003 N180 2004 2007 10 2002 NISSAN TOYOTA Value-Up

8 NRP BMW HYUNDAI 2001 6 HONDA RENAULT 2000 4 PSA COP (%) margin DCX FORD 2 VW GM 1999 ◆ Nissan◆ Competitors in 2004 0 -3 -2 -1 0 1 2 Global Market Share Change from 1999 (%)

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NISSAN Value-Up commitments

Profit commitment Top level operating profit margin among global automakers in FY05-07

Volume commitment 4.2 million sales in FY08

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19 NISSAN Value-Up commitments Global sales volume

4,000 +812 4,200 commitment 3,000 +791 3,388

2,597 2,000

Thousand units 1,000

0 FY01 FY04 FY08*

*Forecast

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NISSAN Value-Up commitments

Profit commitment Top level operating profit margin among global automakers in FY05-07

Volume commitment 4.2 million sales in FY08

Return on invested capital 20% average ROIC over the plan

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20 Financial metrics comparison

Strong cash flow 6 Nissan BMW Honda PSA 5 Toyota DCX VW 4 Top prof itability 3 2 Weak liquidity Average investment 1 0 Average rating: A t t ) b e e S ROA ROE rity nue l De bt u e Ma t CAPEX t Turnover Debt (B/ e Total Ass tion/ EBITA Margin R&D/Rev Ass RCF*/Total RCF*/NetDe DebtFCF/Total Debt Cash/ Charge Coverag Deprecia Adj. Cash**/Tota Fixed Adj. Cash**/

*Retained cash flow: Cash flow from operation – change in working capital - di vidend **Adjusted cash: Cash + marketable securities + V E BA (Voluntary e mplo yee’s beneficiar y association) Source: Moody’s Rating Methodology: Global Auto Industry (Sept. 2004) Analysis: NISSAN IR

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Financial metrics comparison

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21 Financial metrics comparison

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Financial metrics comparison

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22 Inter-company loan From auto to finance

35.7% 35% 33.0% 1,050

30% 900 23.1% 25% 750

20% 600 Billion yen 15% 450

10% 300 % of inter-company loan inter-company % of 5% 150

0% 0 FY02 FY03 FY04

% of inter-company loan = inter-company loan/total funding excluding equity

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NISSAN Value-Up commitments Return on invested capital (auto)

25% 21.3% ROIC average of 20% 20% 19.8% 20.1%* 15% 12.7% 10% COP ROIC 7.5% = Fixed assets 5% (Auto) + Net working capital

1.3% 0 FY99 FY00FY01 FY02 FY03 FY04 FY05 FY06 FY07 NRP NISSAN 180 NISSAN Value-Up *Same sco p e of co nso lid at io n as P&L, exclud ing ch ang e of cash co mp ar ed to FY03

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23 Key assumptions

Total industry volume up to 63 million units in FY07

Foreign exchange rate FY05 105￥/$ 130￥/€ FY06, FY07 100￥/$ 120￥/€

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New global product launches

NISSAN 180 NISSAN Value-Up

New Products 31 28

Start of Production 44 70

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24 NISSAN Value-Up 28 all-new models

10 new conquest models 18 28 replacement models

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Breakthrough Infiniti global tier-1 luxury brand

Russia

China North America Middle Japan* East Korea Taiwan

*Japan launch after NISSAN Value-Up

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25 Breakthrough Light Commercial Vehicles

CARAVAN ATLAS AD Van

CABSTAR CIVILIAN 22 Nissan-badged models

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Breakthrough Light Commercial Vehicles

600 8.0% 8%

450 6% 434 4.0% +40% 300 3.6% 4% 3.3% 312 234 Thousand units 203 150 187 182 2% 1.4% Consolidated operating margin 0-0.5% 0 FY00FY01 FY02 FY03FY04 FY07*

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26 Breakthrough Leading Competitive Countries (LCCs)

Hungary Romania China India Egypt Vietnam Mexico Thailand

Mercosur

Maximize opportunities, minimize costs

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Breakthrough Geographic expansion

Russia Eastern Europe Gulf Countries China Egypt Pakistan IndiaThailand

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27 Opportunities Environmental technologies

NOx & HC Emission CO2 Emission

EV SU-LEV = CVT = HEV

ULEV ULEV

80％ SU-LEV 40％ EV 1 million 200,000 By March 06 CVTs hybrids

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Opportunities New safety approach Safety Shield

10 new safety technologies in the next three years

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28 FY04 fi na nc ial re sul t s / NISS AN Va lue-U p April 25, 2005