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Medium-Term Management Plan (April 2023 - March 2027)

Capturing the CASE Trend and Executing Initiatives for Business Growth

During the period of the new Medium-term Management Plan, which is a time of great change, we intend to leverage our strengths to seize the CASE trends and link them to business growth.
During this period, the following changes in the environment are expected, all of which we see as major business opportunities for our company.
In this context, we will aim for profitable growth through aggressive investment based on our solid management foundation, with the three growth strategies of "leader in electrification," "safety and drive assist technologies," and "mobility business".

Market Environment and Issues to be Addressed

Acceleration of Carbon-Neutral Trend
Market Environment

Arrival of the EV era, Tokyo Metropolitan Government's ZEV strategy ahead of the national government
Growing awareness of energy use and disaster prevention among customers

Issues to be Addressed

Contribute to the realization of a carbon-neutral society by promoting EV vehicles and EV peripheral products

Change in the Way Customers Interact with Their Cars
Market Environment

Expansion of the market for car rental and car sharing, as well as for purchase methods such as subscriptions

Issues to be Addressed

Mobility business by proposing ways to purchase cars utilizing existing know-how (private leasing) and existing assets (dealer network and test-drive vehicles)

Transformation of Customer Purchasing Process
Market Environment

From real to digital
Evolution toward online-based commercial discussions and purchase that can be digitally settled from start to end

Issues to be Addressed

Creation of mechanisms to promote brand experience and creation of stores and networks by integrating real and digital environments

Population Decline Expected in the Medium Term
Market Environment

Intensifying competition to secure qualified talents,
Responding to the needs of diverse work styles

Issues to be Addressed

Improvement of business and operational systems and DX to reform work styles and improve productivity

Management Indicators

Financial indicators Target
Net sales 155.0 billion yen
Operating profit 6.5 billion yen
Dividend payout ratio 30% or higher
ROE 7.0%
Operating profit margin 4.2%
Non-Financial indicators Target
Electrification ratio (passenger vehicles) 90% or higher
Reduction of CO2 emissions through EV sales 16,000 tons

Three Priority Measures

Leader in Electrification

Utilize pioneering strengths to expand the excitement of driving electric vehicles and contribute to the promotion of carbon-neutrality

As the trend toward a carbon-neutral society accelerates, we recognize that there is significant room for growth in the EV market.
We are moving forward with initiatives that leverage the strengths and advantages we have accumulated as a pioneer since the launch of the first-generation "LEAF" in 2010, aiming to sell 10,000 EVs per year and to achieve an electric vehicle sales ratio of 90% or higher. Meanwhile, we will continue to make direct contributions to the environment and society, aiming to reduce CO2 emissions by 16,000 tons through expanded EV sales, as well as promote cooperation with local communities during a disaster by equipping dealers with emergency power sources such as the "Power Mover" and lending EVs as battery storage. We will also promote the use of renewable energy in our dealers.

Safety and Drive Assist Technologies

Provide advanced drive assist technologies to more customers, delivering safety and security
Support daily safety and security with a maintenance system that supports advanced drive assist technologies

We aim to create a safe and secure society through the promotion of safety and drive assist technologies and initiatives for traffic safety and disaster prevention. To achieve this goal, we are focusing on providing more customers with advanced drive assist technologies, as represented by "ProPILOT" and supporting their daily safety and security through a maintenance system that supports these technologies.
In our Medium-term Management Plan, we will actively propose products and services that lead to Zero fatalities*. We will also promote the introduction of maintenance equipment to obtain certification under the specific maintenance system, the acquisition of skills by mechanics, and the establishment of a system for "electronic control system maintenance" to contribute to the realization of a safe and secure car life and a mobility society.

* To reduce the number of traffic accident fatalities involving Nissan vehicles to virtually zero.

Mobility Business

Accurately respond to the "shift from ownership to usage" trend by expanding the use of private leasing and strengthening the mobility business

The private leasing market in Japan is growing at a rate of 20% every year, and continues to expand despite the fact that the automobile sales industry is considered a mature market.
The private leasing business, with its fast turnover cycle and high retention rate, offers significant advantages to our company. It is also advantageous for customers because they do not have to pay initial costs and can easily change to a vehicle of their choice at a fixed price, including various running costs.
We have been offering the private leasing "P.O.P." service since 1997, and have accumulated know-how as a pioneer in the subscription market. Going forward, we aim to further expand our market share in the growing private leasing market, and at the same time, we will continue to develop and aggressively propose new leasing products that meet customers' needs for ease of purchase. We will also focus on the commercialization and monetization of car sharing and car rental, and work to increase the number of vehicles in operation and deploy them at all of our outlets.

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