Nissan Value-Up Breakthrough Seminar LCV Business Unit

Andy Palmer LCV Business Unit Nissan Motor Co., Ltd November 28th, 2005

AGENDA

1. Breakthrough During Nissan Value-Up 2. Definition Of Light Commercial Vehicle 3. Regional Product Line-Up 4. Organization Of LCV Business Unit 5. Six Strategies For Breakthrough 6. Deployment Of LCV Sales Network 7. Progress Report

1 “Value-up with sustained performance” Commitments:

4.2 million units in FY08 Top level operating profit margin ROIC average 20%

1. Breakthrough during NISSAN Value-Up Four Breakthroughs

Infiniti Global Tier-1 Luxury Brand Light Commercial Vehicles Leading Competitive Countries (LCCs) Geographic Expansion

2 1. Breakthrough during NISSAN Value-Up Light Commercial Vehicles

CARAVAN ATLAS AD Van

CABSTAR CIVILIAN

23 Nissan-badged models and 10 DFAC models

1. Breakthrough during NISSAN Value-Up 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% (163) 1.4% Consolidated operating margin 0-0.5% 0 FY00 FY01 FY02 FY03 FY04 FY07*

* Volume is measured from April till March.

3 AGENDA

2. Definition of LCV

Vehicles under 8 ton GVW, sold to companies and individuals for transportation of goods and people, primarily in pursuance of their business.”

Segmentations Current Models

Light Duty Truck Atlas 10, Atlas 20, Cabstar, Atleon Van Medium 2 Van Interstar Medium 1Van Caravan, Primastar Small Van Vanette, Kubistar Light Van AD Van, Expert Heavy Bus Civilian Taxi Cedric Sedan, Crew Pick-Up

Large Pick-Up none Medium Pick-Up D21 Small Pick-Up B120, Queen Cab

4 AGENDA

Sales Volume by Region

450 434 +122 400 +39.1% 350 312 MEX+GOM 300 45 250 71 DFL LCV k units 200 50 150 Europe

100 146 Japan 50

0 FY04 Actual FY07 Commitment

5 LaunchingGlobal Plan LCV of Newproduct Models launch (Full Model) ( ) Opportunity

NISSAN 180 NISSAN Value-Up FY05 FY06 FY07 FY02 FY03 FY04 1st half 2nd half 1st half 2nd half 1st half 2nd half

Primastar Clipper Cabstar AD Van Atlas10 Atlas 20 Van (LCV P-Up) Clipper Truck (NSPU)

Kubistar

1 3 0 0 1 1 1 3 1 3 0 0 2 4

LaunchingGlobal LCV Plan product of New Models launch (Full Model - Tentative)

Value-Up NISSAN Post Value-Up FY08 FY09 FY10 FY05 FY06 FY07 1st half 2nd half 1st half 2nd half 1st half 2nd half

0 1 0 3 1 1 0 2 4 1 3 2 + DFAC

6 3-1. Regional Product Line-Up: Japan

2004 Today 2007 Value-UP New

New

3-1. Regional Product Line-Up: Europe

2004 Today 2007 Value-UP

New

7 3-1. Regional Product Line-Up: US and Mexico 2004 Today 2007 Value-UP New

New

3-1. Regional Product Line-Up: GOM

2004 Today 2007 Value-UP

New

8 3-1. Regional Product Line-Up: China

2004 Today 2007 Value-UP

Nissan

DFL-LCV

AGENDA

9 4-1. Organization of LCV Business Unit

Tavares LCV-BU Head Total head count: 440 EVP Palmer VP

Program Product Engineering Marketing Administration Director Strategy & Strategy Strategy Office Planning

•Program •Product •Engineering •Marketing •Controller Management Strategy •Purchasing •Sales •HR/ •Product •Manufacturing Network Administrative Planning •After sales •Business Engineering Team Strategy 310 Engineers in total Nissan Shatai Nissan Motor Light Truck Nissan Europe

4-2. Global Organization of LCV Business Unit Management Axis LCV-BU VP

LXO LZO LTO LTO LMO LAO PD CPS CVE Purchasing MD Controller

LCV-CBU China

LCV-EBU

Regional Axis Europe

LCV-NBU N. America

LCV-LBU S. America

LCV-SABU S. Africa

LCV-NABU Middle East

10 AGENDA

5-1. Six Strategies for Breakthrough

COP Volume

Strategy 2 Strategy 1 Cost Reduction New Model Value Enhancement Development Strategy 3 Strategy 5 Enter New OEM Sales Territories

Strategy 4 Value Chain Enhancement

Infrastructure (organization, business process, culture, etc)

Strategy 6 Learning Company

11 5-2. Six Strategies and Major Activities

1. New Model Development ? Product planning ? Mid & long term product strategy 2. Cost Reduction/Value Enhancement ? Cost reduction Plans and ? Design-to-cost Milestones are 3. Enter New Territories Checked with ? USA, GOM and PRC 4. Value Chain Enhancement HOSHIN ? Establishment of LCV sales network in Japan and its deployment to Europe and GOM KANRI ? LCV brand enhancement MANAGE- ? LCV aftersales enhancement MENT CYCLE 5. OEM Sales 6. Learning Company ? Establishment of global LCV-BU ? Change culture and improve work environment ? Establish LCV-BU’s financial simulator

5-2-a. New Model Development

New model pictures are confidential.

12 5-2-b. Cost Reduction Concurrent Development Creative thinking Engineering

Time Management Manufacturing Design-to-Cost

Converging New Platforms models Production Efficiency Existing models Power trains LCC Global Sourcing FY2007

Leading Competitive Countries GSE Global Service Efficiency Parts Activities G&A

5-2-c. Entering New Territories: China

LCV-R&D Organization(Alt3) Management report Project report Coordination Centred @ Wuhan Satellite @Xiangfan @Zhengzhou

DFAC EVP DFAC EVP LDT CVE LCV CVE Fang Chi Ｗａｔａｎａｂｅ (NML) (NML) ＜EX ；F91A＞＜EX；NSV＞

CVE R&D GM Watabe from NML Support as ＜EX；DFAC LDT＞ consignment work DFAC+ZNA D+D DFAC+ZNA D+D + FSA + FSA or STA or Trip DFAC D+D (from NMLT) (from NML or NS) ? people ? people ?people

DF brand NISSAN brand

13 5-2-d. Value Chain Enhancement

Dealer signal board LCV Pro Shop Logo

Reception Desk

5-2-e. OEM Sales

• OEM is unique and essential to LCV Business - Contributing 39% of Total LCV Volume, 19% of COP • OEM Seller is more profitable than OEM Buyer - Nissan is currently net OEM Buyer

16.0% 14.0%

12.0% 10.0% 8.0% COP % 6.0% 4.0% By Model 2.0% 0.0%

Models as Models as OEM Seller OEM Buyer

14 5-2-f. Learning Company

We inherited nothing from the past and started to rebuild LCV Business from the scratch. Everything we learn for success during Value-Up will be passed onto our next generation.

Organization: Global, lean, and flat Culture: Vibrant and innovative People: Open, creative, and team-oriented

AGENDA

15 6-1. Value Chain Enhancement

1) Launching LCV Pro-Shops in Japan Policy ? Deploy LCV Pro-Shops in the high demand area ? Set up “Shop in Shop” in the current PV/RV shops LCV Pro-Shop Standards ? LCV Pro-Shop requires “Dedicated LCV Sales Professional” ? LCV Pro-Shop requires “Demo & Display LCV Vehicles” ? LCV Pro-Shop requires “Specialized Visual Identity” ? LCV Pro-Shop requires “Specialized Spare Parts Tools” ? LCV Pro-Shop requires “Service Facility for Atlas 20” ? LCV Pro-Shop requires “New After Sales Products” 2) Global Roll-out of Sales Network Europe, US and GOM

LCV Pro Shop Logo

16 Reception Desk

Dealer signal board

17 Dealer signal board

Global LCV LOGO

This area can be changed upon market’s situation.

18 AGENDA

7. Volume/COP Trend and Forecast

(K units) 500 8.0% 450 Declining volume 6.0% 400 Negative COP 4.0% 350 300 2.0% 250 0.0% 200 -2.0% 150 -4.0% 100 50 -6.0% 0 -8.0% 95 96 97 98 99 00 01 02P 02A 03 04A 05F 06F 07F

19 7. Volume/COP Trend and Forecast

(K units) 500 8.0% 450 Trough Declining volume 6.0% 400 During NRP Negative COP 4.0% 350 300 2.0% 250 0.0% 200 -2.0% 150 -4.0% 100 50 -6.0% 0 -8.0% 95 96 97 98 99 00 01 02P 02A 03 04A 05F 06F 07F

7. Volume/COP Trend and Forecast

Recovery (K units) N180 500 8.0% 450 Trough Declining volume 6.0% 400 During NRP Negative COP 4.0% 350 300 2.0% 250 0.0% 200 -2.0% 150 -4.0% 100 50 -6.0% 0 -8.0% 95 96 97 98 99 00 01 02P 02A 03 04A 05F 06F 07F

20 7. Volume/COP Trend and Forecast

Value-Up Recovery (K units) N180 8.0% 500 8.0% 450 Trough 434K Declining volume 6.0% 400 During NRP Negative COP 434K 4.0% 350 300 2.0% 250 0.0% 200 -2.0% 150 Current Forecast -4.0% 100 Exceeds ESS#4 50 -6.0% 0 -8.0% 95 96 97 98 99 00 01 02P 02A 03 04A 05F 06F 07F Re-forecast Commitment

7. First Half Results 2005– LCV Value-Up

400,000 339,944 350,000 305,484 Actual Budget 274,833 300,000 246,481 237,380 219,012 250,000 208,604

200,000 171,763 191,496 150,000 139,745 164,575 100,824 134,993 100,000 109,142 58,064 79,735 50,000 30,732 48,709 24,118 0 1st. - 2nd. - 3rd. - 4th . - 5th . - 6th . - 7th . - 8th . - 9th . - 10th . - 11th . - 12th .