NISSAN MOTOR CO.,LTD. Q2 FY2025 earnings call

• Cost control measures showing encouraging signs; R&D spending disciplined at JPY 275 billion. • Sales: Q2 declines narrowed, North America strong in Q2, China positive since June, Japan and Europe soft but expected recovery with new launches. • Financial: Total liquidity JPY 3.6 trillion; H1 fixed cost savings over JPY 80 billion via Re:Nissan initiatives. • Strategic: Re:Nissan focuses on disciplined cost reductions, redefining markets/products, reinforcing partnerships; target JPY 500 billion in savings by FY2026; 9 new models by FY2027; partnerships in tech for mobility (e.g., autonomous mobility, AI driver software).

Total unit sales in the first half reached about 1.5 million, down 7.3% year-on-year. Automotive business revenue was approximately IDR 4.9 trillion. North America saw 2% overall growth and 6.7% in Q2; U.S. sales were flat, Mexico up 8%. China had H1 decline but grew year-on-year since June, led by N7 demand. Japan dropped 16.5% in H1; Europe and other markets had temporary declines from model year changeovers. First half consolidated net revenue was about JPY 5.6 trillion with an operating loss of JPY 28 billion, net loss JPY 222 billion.

• Full year sales forecast unchanged at ~3.25 million units (2.9% decline y-o-y). • Net revenue expected JPY 11.7 trillion; full year operating loss ~JPY 275 billion, breakeven before tariffs; target JPY 1 trillion net cash at year-end, positive free cash flow in H2. • Full year sales forecast adjusted for first half performance, production projected ~3 million units.

• Tariffs and currency headwinds impacting profitability. • Supply risks: Aluminum supply issue in North America and chip ban from China (partly resolved).

Q: Impact of supply risks like aluminum and chips?

A: Fluid situation, managing closely; forecast includes JPY 25 billion risk placeholder, which may be adjusted as situation clarifies.

Q: Annual rent for GHQ sale and leaseback?

A: Not disclosing the specific annual rent amount, but it's a good financial and business decision.