Nissan Motor’s Global Strategy & Two Vision ZERO

November 18, 2013 Toshiyuki Shiga Representative Director & Vice Chairman Motor Company Ltd. POWER 8 8 Global market Brand & sales power share by FY16 (%) Sustainable COP (%)

FY13 Outlook 6.4% 5.4%

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2 2013 All rights reserved. Global Strategy

Offensive Strategy

Emerging Premium market markets Entry markets Leadership Strategy

Autonomous driving Partnership Strategy

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 3 Emerging Countries Leading the Growth

Source: Nissan Motor

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 4 New plant investments

FY13 FY14

Under construction India new plant (Powertrain) (From Sept.)

Under construction Jatco Thailand new plant (From Sept.)

Under construction Mexico new plant (From Nov.)

Under construction Brazil new plant (Spring)

Under construction Oct. 2013/ 1on1 Thailand new plant

Under construction Indonesia new plant

Russia St. Petersburg Under construction plant expansion

Under construction China Dalian new plant

Under construction Jatco Mexico new plant

(C) Copyright NISSAN MOTOR CO., LTD. www.nissan-global.com 2013 All rights reserved. 5 New Source of Sales (mature markets vs. growth markets)

Replacement

New

Require products / services that cater to the Typical scene in needs of first-time buyers an emerging market

Datsun brand offers new values

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 6 Introduction of  India, Indonesia, Russia, & South Africa in 2014

Datsun’s target customers

400,000 rupee (approx.¥660,000) or less Dream Access Trust

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 7 Market Needs & Opportunities in India

50% of the market by 2016 Demand by price range 250,000

200,000

150,000

100,000 Nissan’s share at 0% today 50,000

00,000

Less than Rs.200,000Rs.200,001-225,000Rs.225,001-250,000Rs.250,001-275,000Rs.275,001-300,000Rs.300,001-325,000Rs.325,001-350,000Rs.350,001-375,000Rs.375,001-400,000Rs.400,001-425,000Rs.425,001-450,000Rs.450,001-475,000Rs.475,001-500,000Rs.500,001-525,000Rs.525,001-550,000Rs.550,001-575,000Rs.575,001-600,000Rs.600,001-700,000Rs.700,001-800,000Rs.800,001-900,000 Rs.900,001-1,000,000 $5,000 $7,500 $10,000 $12,500 $15,000 $17,500 Rs.1,000,001 and above

1USD=45.7 INR 8

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 8 Progress & Goal of Business

Premium Market Analysis Infiniti Q50 world debut at Detroit auto show Premium brands account for 11% But represent 50% of of total light-vehicle sales. industry profits

www.nissan-global.com 9 Building Stronger Infiniti Business

Relocation of HQ to Hong Kong

Currently IML 15 nationalities

Grand opening ceremony held on May 2012

Infiniti Q50 world debut at Detroit auto show

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 10 Active Recruitment of Dedicated Personnel

Develop Asia’s first premium brand with a team of professionals and experts  Johan  Michael  Daniel

SVP of NML in charge of global VP of Infiniti Americas Managing Director of Infiniti China Infiniti since last July. since this September. since this May Served as president of Audi’s Served as COO of Served as American operation Porsche North Previous vice president of BMW’s joint America venture in China Speaks fluent Chinese

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 11 Adapting to the changing environment alone is tough Investment

Customers Growth of emerging Speed needs countries

Diverse green technologies

Shift toward smaller / cheaper cars Connections with + Human governments IT changes to automobile resources society

Technologies

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 12 Capitalize on partnerships and local resources

Share investments

Capitalize Capitalize on local Partnership on local insights talents

Complement technologies

Complementarity Synergy Alternative Offset

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 13 Partnerships created so far

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 14 Case①: Nissan Alliance Common Module Family Applied from Rogue / X-Trail in FY2013 Electrical & Electronics architecture

Engine FR under Cockpit RR under Vehicle type compartment body body

MPV Heavy weight High Position Heavy weight High hood SUV

Middle weight Middle Position Middle weight SED

Low hood H/B Light weight Low Position Light weight

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 15 Case②: Partnership Strategy with Daimler

 Infiniti Q50 Diesel engine essential for Europe and downsizing turbo

 Joint production of 4-cylinder gasoline engine in Tennessee, U.S. starting from mid-2014. Applied to Mercedes Benz C Class & Infiniti models

 Infiniti Q30 adopt some components of Daimler

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 16 Leadership Strategy

Preparations to accomplish Nissan Power 88 hit the climax in FY2013, the end of the first half of the plan. Investments bear fruits going forward. + At the same time, Nissan is pursuing sustainable mobility under the vision and leadership strategy.

Leadership Challenges to Social Vision Strategy develop sustainable Value (Goal) mobility (Solution)

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 17 Challenges by Nissan

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 18 2013 All rights reserved. Challenges by Nissan

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 19 2013 All rights reserved. Challenges to Develop Sustainable Mobility Energy Global warming Air pollution Accidents

A h b Fossil fuels Emission Safety

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 20 2013 All rights reserved. Vision : 2 ZERO

Energy Global warming Air pollution Accidents Zero emission

Zero fatality A h b

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 21 2013 All rights reserved. 2 Approaches of Leadership Strategy

Energy Global warming Air pollution Accidents Electrification

Vehicle A h b Intelligence

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 22 2013 All rights reserved. Electrification for Zero emission

Energy Global warming Air pollution Accidents交通事故

A h b

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 23 2013 All rights reserved. Shift from fossil fuel-powered cars to cars powered by renewable energy

Fossil fuels Bio fuel Electric power Regeneration

Storage Driving energy

Ford Model T of 1908 Electric Vehicle

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 24 2013 All rights reserved. 100% EV  Launched in December 2010

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 25 2013 All rights reserved. Nissan LEAF Users’ Voice

WWW.nissan-global.com 26 Compelling Attributes of EV

Home charging Inexpensive Ultimate quietness electricity Zero emission

Agility

Around-the-clock connected services

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 27 2013 All rights reserved. Aggregate Global Sales of Approx.87,000 units (as of October 2013) Kanagawa Prefecture History of Nissan LEAF Sales Volume More than 50,000 units JPN

Nissan LEAF Owners’ Event in San Francisco 30,431 US 22,908

5,061 Switch EV Project in U.K.

FY10 FY11 FY12 FY13 FCST EUR

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 28 2013 All rights reserved. FAQ

No matter how much you boost the number of eco-friendly EV, wouldn’t the issue remain unsolved as long as the power is generated by fossil fuels such as oil and coal?

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 29 2013 All rights reserved. Adoption of renewable energy is key However, power generated by natural energy is unstable. It is a challenge to supply at need.

sunlight

wind Unstable power supply

water

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 30 2013 All rights reserved. EV for Energy Storage Using EV as energy storage enables practical use of renewable energy.

sunlight EV

wind 電 気

Store water electricity

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 31 2013 All rights reserved. Connect with power grid

エネルギーIT network 温暖化

出典: NASA earth observatory (http://www.nasa.gov/vision/earth/environment/arcticice_decline.html)

渋滞 交通事故 People

Power grid

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 32 2013 All rights reserved. Power Storage Capacity

EV Battery Capacity Power Consumption

1 Average Household 24 kWh 10 kWh/day

400 Nissan GHQ Approx.10 MWh 10MWh/day

22,000 Nishi-ku, Yokohama Approx.530 MWh (53,000 households) 530MWh/day

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 33 2013 All rights reserved. Nissan LEAF’s Value as Storage Battery Storage battery capacity(kWh)/price(¥) LEAF has ¥7 million value as storage battery (excluding vehicle value)

Power supply capacity of a 400 Storage battery for LEAF(24KWh) household use on 単位( 万円) the market 300

200 For about For about 29 Days 160 Days Nissan100 LEAF 24kWh/2980K Yen

For about 10 Days

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 34 2013 All rights reserved. LEAF to HOME  2-way energy management by PCS*  Sold about 2000 units (as of the end of October 2013)

*PCS : Power Control System

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 35 2013 All rights reserved. Power Saving Initiative with Nissan LEAF  A trial in Osaka Prefecture delivered expected results.

5 ¥48,000

10,000) 4 ( ¥

3 ¥20,000 2

1 saving Annual 0 Annual driving distance Annual driving distance 12,000km 7,000km

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 36 2013 All rights reserved. Real-world Evaluation at NATC (Nissan Advanced Technical Center)  Peak shaving by EV commuters

charging

discharging

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 37 2013 All rights reserved. V2B (Vehicle to Building)  EVs parked at the office supply electricity and contribute to peak shaving  EVs are charged by the time when an employee leaves ピークカットの考え方 オフィスビル Peak shaving scheme (office ( building) )

Working勤務時間 hours

1 2 3 B B B

V V V

Power consumption Power 3 6 9 12 15 18 21 o’clock EV battery status Arrival Departure

charging discharging charging

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 38 2013 All rights reserved. Leveling Power Consumption with EV  If 10% of cars in Japan are replaced with EV, it results in 5% peak shaving

[ GW ] 200 discharging 5% reduction

charging 100 Charging for driving

Time時間 Source: Nissan Motor Power (totalcompaniesof 10utility around Japan)

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 39 2013 All rights reserved. In Pursuit of Smart Community  Big-scale real-world evaluation is underway around the world

Holland Japan Colorado Amsterdam Denmark Yokohama city , city etc.

Amsterdam city EDISON Project Testing next-generation energy & social system Smart Grid City

England Spain China Korea Hawaii Texas

Low Carbon London Smart City Málaga ECO-CITY Jeju Smart Grid Island project Pecan Street Project

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 40 2013 All rights reserved. Proposal of New Mobility

“Choimobi “ Yokohama city revolutionary OAL×OAW×OAH : 2340 × 1230 × 1450 (mm) Capacity : 2 persons (in the front & the rear) clean Max speed : approx. 80km/h Weight : 470kg(w/ doors) 500kg(w/out doors) Output : rated power 8kW, max.15kW safe Range : approx. 100km Charging method/time : standard 200V, approx.4 hrs

accessible

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 41 2013 All rights reserved. Vehicle Intelligence for Zero Fatality

Energy Global Warming 大気汚染 Traffic accident

A h b

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 42 2013 All rights reserved. Traffic Fatalities More than 1.2 million people die in traffic accidents around the #of fatal accidents in Japan peaked in 1970 world. and is on the decline. Yet over 4,000 people die every year. fatalities  Rank (1000 people) 1 India 126 History of traffic fatalities in Japan

2 China 67 16,765 4411 Declining 12 yrs in a row 3 US 34 4 Russia 26 5 S. Africa・・・ 13

13 Japan 4 <2009 WHO > www.nissan-global.com

www.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 2013 All rights reserved. 4343 Economic loss inflicted by traffic accidents around the world Approx. ¥60 tril. / year

※Estimated by Nissan Research Cen

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 44 2013 All rights reserved. Economic costs of road traffic非効率時間/ストレスからの解放 congestion Approx. 44 tril. / year

※Estimated by Nissan Research Cente

駐車場所の探索

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 45 2013 All rights reserved. Economic opportunity of autonomous driving (per year)

Accident loss ¥60tril Congestion loss¥44tril ¥104tril.*

Equivalent to 2% of global GDP (equivalent to GDP of South Korea)

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 46 2013 All rights reserved. Impediment to safety  More than 90% of traffic accidents are caused by human errors

Others Driver

93%

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 47 2013 All rights reserved. 3 Factors of Vehicle Intelligence

recognition judgment action

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 48 2013 All rights reserved. Application of State-of-the-art Technologies  100 times more capable than a human being in terms of “recognition,” “judgment,” and “action” 判断 Judgment

104 [T FLOPS] Processing Speed

103

102

101 10-1

Frame rate 102 10-2 Response

3 02 -3 01 [fps] 10 10 [s]

認知 Recognition 操作 Action 03

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 49 2013 All rights reserved. Better Recognition

High speed camera recognizes images in slow motion

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 50 2013 All rights reserved. Affinity between EV and autonomous driving  Motor generates maximum torque in low-speed revolution zone.  Inverter control ensures quick acceleration and sharp response in whole speed range. Motor Inverter Output torque

[Nm] Vehicle speed (km/h)

EV ICE responsiveness acceleration [G ]

time [sec]

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 51 2013 All rights reserved. Value of Vehicle Intelligence(VTR)  Safe mobility for everyone through autonomous driving

自動運転のデモ動画

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 52 2013 All rights reserved. Silicon Valley Office, Nissan Research Center opened in 2013

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 53 2013 All rights reserved. Autonomous driving technologies will be applied to multiple models by 2020 The first proving ground specifically designed for autonomous driving vehicle is under construction in Japan.

Laser scanner

FR Camera Laser scanner Laser scanner

Laser scanner

AVM Camera Laser scanner

WWW.nissan-global.com (C) Copyright NISSAN MOTOR CO., LTD. 54 2013 All rights reserved. Car becomes your partner

Source : Wikimedia Commons

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