FY2020 Consolidated Financial Results (Japanese Accounting Standards)

May 11, 2021

Company name : Nissan Motor Co., Ltd. <Tokyo Stock Exchange in Japan>
Code no : 7201 (URL https://www.nissan-global.com/EN/IR/)
Representative : Makoto Uchida, Representative Executive Officer, President and Chief Executive Officer
Contact person : Tsuyoshi Tatsumi, Corporate Vice President, IR Department Tel. (045) 523 - 5523
Scheduled date of the general meeting of shareholders : To be determined Scheduled date of filing Yukashoken-Houkokusho : To be determined
Scheduled date of payment of cash dividends : ―
The additional materials of the Financial Results for FY2020 : Yes
The briefing session of the Financial Results for FY2020 : Yes
(Amounts less than one million yen are rounded)
1. Consolidated Financial Results for FY2020 (April 1, 2020 through March 31, 2021)
<1> Consolidated operating results
(Percent indications show percentage of changes from corresponding figures for the previous period.)
Net income attributable to
Net sales Operating income Ordinary income
owners of parent
Millions of yen % Millions of yen % Millions of yen % Millions of yen %

FY2020 7,862,572 (20.4) (150,651) ― (221,230) ― (448,697) ―

FY2019 9,878,866 (14.6) (40,469) ― 44,049 (91.9) (671,216) ―
Note: Comprehensive income : (41,928) million yen for FY2020, －% : (1,084,147) million yen for FY2019, －%

Ordinary income as a Operating income as a

Basic earnings Diluted earnings Rate of return
percentage of total percentage of net
per share per share on equity
assets sales
yen yen % % %
FY2020 (114.67) ― (11.2) (1.3) (1.9)
FY2019 (171.54) ― (14.3) 0.2 (0.4)
Reference: Equity in earnings (losses) of affiliates : (55,861) million yen for FY2020, 86,547 million yen for FY2019

<2> Consolidated financial position

Net assets as
Total assets Net assets a percentage of Net assets per share
total assets
Millions of yen Millions of yen % yen
FY2020 16,452,068 4,339,826 24.0 1,007.80
FY2019 16,976,709 4,424,773 23.9 1,038.95
Reference: Net assets excluding share subscription rights and non-controlling interests: 3,944,593 million yen as of March 31, 2021,
4,064,289 million yen as of March 31, 2020

<3> Consolidated cash flows

Cash and cash
Cash flows from Cash flows from Cash flows from
equivalents
operating activities investing activities financing activities at the end of period
Millions of yen Millions of yen Millions of yen Millions of yen

FY2020 1,322,789 (369,121) (639,692) 2,034,026

FY2019 1,185,854 (708,687) (155,494) 1,642,981

2. Dividends
Total cash Cash dividends as
Annual cash dividends per share Payout ratio
a percentage of
dividends
net assets
at 1st quarter end at 2nd quarter end at 3rd quarter end at fiscal year end Total (Annual) (Consolidated)
(Consolidated)
yen yen yen yen yen Millions of yen % %
FY2019 ― 10.00 ― 0.00 10.00 39,132 ― 0.8
FY2020 ― 0.00 ― 0.00 0.00 0 ― ―
FY2021 forecast ― ― ― ― ― ―
Note: FY2021 dividends forecast has not yet been determined.

3. Forecast of consolidated operating results for FY2021 (April 1, 2021 through March 31, 2022)
(Percent indications show percentage of changes from corresponding figures for the previous period.)

Net income attributable to

Net sales Operating income Net income per share
owners of parent
Millions of yen % Millions of yen % Millions of yen % yen

FY2021 9,100,000 15.7 0 ― (60,000) ― (15.33)

Note: Forecast of consolidated operating results for FY2021 1st half is not prepared.
※ Notes
<1> Significant changes in scope of consolidated subsidiaries: None
In : - ( Company Name : ) Out : - (Company Name : )

<2> Changes in accounting policies, accounting estimation change and restatement

<2>-1 Changes in accounting policies due to the revision of the accounting standards: Applicable
<2>-2 Changes in accounting policies except for those in <2>-1: Applicable
<2>-3 Changes due to accounting estimation change: None
<2>-4 Restatement: None
Note: See attached page14 "3. CONSOLIDATED FINANCIAL STATEMENTS (5) Notes to Consolidated Financial Statements - Changes in accounting policies".

<3> Number of shares issued (common stock)

<3>-1 Number of shares issued at the fiscal year end (including treasury stocks) FY2020 4,220,715,112 shares FY2019 4,220,715,112 shares
<3>-2 Number of treasury stocks at the fiscal year end FY2020 306,650,569 shares FY2019 308,801,374 shares
<3>-3 The average number of shares issued during the fiscal year FY2020 3,912,895,437 shares FY2019 3,912,975,326 shares

(Reference) Non-Consolidated Financial Results

Results of FY2020 (April 1, 2020 through March 31, 2021)

1. Results of non-consolidated operations for the year ended March 31, 2021
(Percent indications show percentage of changes from corresponding figures for the previous period.)
Net sales Operating income Ordinary income Net income

Millions of yen % Millions of yen % Millions of yen % Millions of yen %

FY2020 2,489,676 (21.2) (263,729) ― 99,034 272.7 (72,629) ―

FY2019 3,157,540 (13.4) (130,060) ― 26,571 (90.2) (342,745) ―

Net income per

share - basic
yen
FY2020 (17.32)
FY2019 (81.76)

※ This Financial Results report is out of scope of Financial Audit by certified public accountants or an audit firm

※ Explanation regarding the appropriate use of forecasts of business results

The financial forecast is based on judgments and estimates that have been made on the basis of currently available information.
By nature, such financial forecast is subject to uncertainty and risk. Therefore, you are advised that the final results might be significantly different from
the aforementioned forecast due to changes in economic environments related to our business, market trends and exchange rate, etc.

For other remarks, please refer to "Other Information" on page 22.

 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

【Table of Content of material】

1. BUSINESS PERFORMANCE AND FINANCIAL POSITION ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2

(1) Fiscal Year 2020 Business Performance ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 2

(2) Fiscal Year 2020 Financial Position ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3

(3) Fiscal Year 2020 Cash Flows ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 3

(4) Fiscal Year 2021 Financial Forecast ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 4

2. BASIC RATIONALE ON SELECTION OF ACCOUNTING STANDARDS ・・・・・・・・・・・・・・・・・・・・・・ 4

3. CONSOLIDATED FINANCIAL STATEMENTS ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5

(1) Consolidated Balance Sheet ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 5

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income ・・・・・・・ 7

Consolidated statement of income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 7

Consolidated statement of comprehensive income ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 9

(3) Consolidated Statement of Changes in Net Assets ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 10

(4) Consolidated Statement of Cash Flows ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 12

(5) Notes to Consolidated Financial Statements ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14

Notes to events and conditions which indicate there could be substantial doubt about going concern
assumption ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14

Basis of consolidated financial statements ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14

Changes in accounting policies ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 14

Additional information ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 15

Segments of an enterprise and related information ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 16

Amounts per share ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 21

Significant subsequent events ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 21

4. Other Information ・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・・ 22

-1-
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

1. BUSINESS PERFORMANCE AND FINANCIAL POSITION

(1) Fiscal Year 2020 Business Performance

In fiscal year 2020, the global industry volume decreased by 10.2% to 76.98 million units. The main reason of this
decrease was due to the impact of COVID-19 globally, which led to a decline in demands particularly in the first quarter.
The Nissan Group (the ”Group”)’s global sales amounted to 4,052,000 units, a 17.8% decrease from the prior fiscal year
due to COVID-19 impact. As a result, the Group’s market share decreased by 0.5 points to 5.3% from the prior fiscal
year.

In Japan, TIV decreased by 7.6% to 4.66 million units. The Group’s sales volume decreased by 10.6% to 478,000 units
and the Group’s market share decreased by 0.3 points to 10.3% from the prior fiscal year.

In China, TIV decreased by 3.6% to 23.43 million units. The Group’s sales volume decreased by 5.8% to 1,457,000
units and the Group’s market share decreased by 0.2 points to 6.2% from the prior fiscal year.

In North America, including Mexico and Canada, TIV decreased by 11.1% to 17.48 million units. The Group’s sales
volume in North America decreased by 25.1% to 1,213,000 units from the prior fiscal year.
In the United States of America, TIV decreased by 9.5% to 14.98 million units. The Group’s sales volume decreased by
25.1% to 927,000 units and the Group’s market share decreased by 1.3 points to 6.2% from the prior fiscal year.

In Europe, TIV decreased by 16.2% to 16.02 million units. The Group’s sales volume in Europe, excluding Russia,
decreased by 24.1% to 328,000 units. Also, sales volume in Russia decreased by 28.1% to 64,000 units from the prior
fiscal year.

In other markets, the Group’s sales volume decreased by 27.5% to 513,000 units. Sales volume in Asia and Oceania
decreased by 29.6% to 193,000 units, sales volume in Latin America decreased by 31.5% to 141,000 units, sales volume
in Middle East decreased by 19.2% to 117,000 units and sales volume in Africa decreased by 25.3% to 62,000 units
from the prior fiscal year.

Net sales in fiscal year 2020 decreased by ¥2,016.3 billion (20.4%) to ¥7,862.6 billion from the prior fiscal year. As a
result, operating loss totaled ¥150.7 billion, which deteriorated by ¥110.2 billion from the prior fiscal year. This was
mainly due to a decrease in sales volume caused by the impact of COVID-19 and exchange rate fluctuations, despite
improvements in the quality of sales and reductions in fixed costs.

Net non-operating loss of ¥70.5 billion was recorded, deteriorated by ¥155.0 billion from the prior fiscal year. This
result was primarily due to the change from equity in earnings of affiliates to equity in losses of affiliates. Ordinary loss
of ¥221.2 billion was recorded, deteriorated by ¥265.2 billion from the prior fiscal year. Net special losses of ¥118.1
billion were recorded, improved by ¥498.9 billion from the prior fiscal year. Loss before income taxes of ¥339.3 billion
was recorded, improved by ¥233.7 billion from the prior fiscal year. Net loss attributable to owners of parent of ¥448.7
billion was recorded, improved by ¥222.5 billion from the prior fiscal year.

For fiscal year 2020, automotive free cash flow was ¥391.0 billion negative. However, the Group continues to maintain
healthy levels of cash in the automotive business and ended the period with an automotive net cash position of ¥636.0
billion.

-2-
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

(2) Fiscal Year 2020 Financial Position

■Assets
Current assets have decreased by 3.1% to ¥10,349.7 billion compared to March 31, 2020. This was mainly due to
decreases in sales finance receivables of ¥525.5 billion and merchandise and finished goods of ¥234.4 billion despite
an increase in cash on hand and in banks of ¥489.3 billion.
Fixed assets have decreased by 3.3% to ¥6,095.2 billion compared to March 31, 2020. This was mainly due to a decrease
in machinery, equipment and vehicles, net of ¥231.7 billion.
As a result, total assets have decreased by 3.1% to ¥16,452.1 billion compared to March 31, 2020.
■ Liabilities
Current liabilities have decreased by 16.6% to ¥6,726.4 billion compared to March 31, 2020. This was mainly due to
decreases in commercial papers of ¥719.3 billion, short-term borrowings of ¥323.4 billion and current portion of bonds
of ¥250.6 billion.
Long-term liabilities have increased by 20.0% to ¥5,385.9 billion compared to March 31, 2020. This was mainly
attributable to an increase in bonds of ¥1,003.7 billion despite a decrease in net defined benefit liability of ¥196.5 billion.
As a result, total liabilities have decreased by 3.5% to ¥12,112.2 billion compared to March 31, 2020.
■ Net Assets
Net assets have decreased by 1.9% to ¥4,339.8 billion compared to ¥4,424.8 billion as of March 31, 2020. This was
mainly due to a decrease in retained earnings of ¥495.1 billion despite increases in remeasurements of defined benefit
plans of ¥149.3 billion, translation adjustments of ¥140.0 billion and unrealized holding gain and loss on securities of
¥78.3 billion.

(3) Fiscal Year 2020 Cash Flows

Cash and cash equivalents at the end of fiscal year 2020 increased by ¥391.0 billion or 23.8% to ¥2,034.0 billion, due
to a decrease in outflows from investing activities and an increase in inflows from operating activities, despite an
increase in cash outflows from financing activities.
■ Operating Activities
Cash and cash equivalents provided by operating activities amounted to ¥1,322.8 billion in fiscal year 2020, an increase
of ¥136.9 billion from ¥1,185.9 billion provided in the prior fiscal year. This was mainly due to a shift from an increase
to a decrease in inventories and a shift from a decrease to an increase in trade notes and accounts payable, despite a shift
from a decrease to an increase in trade notes and accounts receivable.
■ Investing Activities
Cash and cash equivalents used in investing activities amounted to ¥369.1 billion in fiscal year 2020, a decrease of
¥339.6 billion from ¥708.7 billion used in the prior fiscal year. This was mainly attributable to a decrease in net payment
(net difference between the payment for purchase and the proceeds from sales) of leased vehicles and in purchase of
fixed assets.
■ Financing Activities
Cash and cash equivalents used in financing activities amounted to ¥639.7 billion in fiscal year 2020, an increase of
¥484.2 billion from the outflows of ¥155.5 billion in the prior fiscal year. This was mainly due to a shift from an increase
to a decrease in net short-term borrowings, and an increase in repayments of long-term borrowings and redemption of
bonds, despite an increase in proceeds from long-term borrowings and issuance of bonds.

-3-
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

(4) Fiscal Year 2021 Financial Forecast

For fiscal year 2021, Nissan anticipates retail volume will rise by 8.6% to 4.4 million units. On the other hand, there is
continued business risk due to semiconductor supply shortage and raw material price hike in this fiscal year. Based on
these risks, decrease in profit due to the negative foreign exchange movement, increase in costs for environmental
regulations and products enhancement, and increase in profit due to improvement in revenue and monozukuri, and
others, we anticipate net revenues increasing by 15.7% to ¥9.1 trillion, operating income is forecast at zero, improved
by ¥150.7 billion from the prior fiscal year, and net loss attributable to owners of parent is expected to be ¥60.0 billion,
improved by ¥388.7 billion from the prior fiscal year, for the year ending March 31, 2022.
Foreign exchange rate assumptions are ¥105.0 to the dollar and ¥120.8 to the euro for fiscal year 2021.

2. BASIC RATIONALE ON SELECTION OF ACCOUNTING STANDARDS

We are currently in the process of studying the adoption of International Financial Reporting Standards (IFRS) for the
purpose of disclosure of financial information.

-4-
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

3. CONSOLIDATED FINANCIAL STATEMENTS

(1) Consolidated Balance Sheet

(in millions of yen)
FY2019 FY2020
(As of March 31, 2020) (As of March 31, 2021)
Assets
Current assets
Cash on hand and in banks 1,382,471 1,871,794
Trade notes and accounts receivable 356,156 518,451
Sales finance receivables 6,739,336 6,213,797
Securities 260,510 162,232
Merchandise and finished goods 881,940 647,583
Work in process 67,865 66,171
Raw materials and supplies 390,618 425,817
Other 739,307 624,347
Allowance for doubtful accounts (142,264) (180,533)
Total current assets 10,675,939 10,349,659
Fixed assets
Property, plant and equipment
Buildings and structures, net 582,716 590,016
Machinery, equipment and vehicles, net 2,936,316 2,704,640
Land 589,064 589,613
Construction in progress 227,165 228,101
Other, net 183,589 266,184
Total property, plant and equipment 4,518,850 4,378,554
Intangible fixed assets 114,932 121,221
Investments and other assets
Investment securities 1,177,184 1,129,007
Long-term loans receivable 13,658 11,572
Net defined benefit assets 10,397 29,840
Deferred tax assets 228,012 162,298
Other 241,622 266,457
Allowance for doubtful accounts (3,885) (3,764)
Total investments and other assets 1,666,988 1,595,410
Total fixed assets 6,300,770 6,095,185
Deferred assets
Bond issuance costs ― 7,224
Total deferred assets ― 7,224
Total assets 16,976,709 16,452,068

-5-
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

(in millions of yen)

FY2019 FY2020
(As of March 31, 2020) (As of March 31, 2021)
Liabilities
Current liabilities
Trade notes and accounts payable 1,357,047 1,501,972
Short-term borrowings 1,339,949 1,016,504
Current portion of long-term borrowings 1,826,904 1,721,797
Commercial papers 726,017 6,749
Current portion of bonds 765,532 514,893
Lease obligations 35,572 43,542
Accrued expenses 1,031,284 1,034,305
Accrued warranty costs 104,297 101,624
Other 878,644 784,996
Total current liabilities 8,065,246 6,726,382
Long-term liabilities
Bonds 1,042,954 2,046,620
Long-term borrowings 2,098,558 2,173,677
Lease obligations 72,494 75,450
Deferred tax liabilities 243,428 264,301
Accrued warranty costs 108,751 102,303
Net defined benefit liability 454,068 257,521
Other 466,437 465,988
Total long-term liabilities 4,486,690 5,385,860
Total liabilities 12,551,936 12,112,242
Net assets
Shareholders’ equity
Common stock 605,814 605,814
Capital surplus 818,056 817,071
Retained earnings 4,125,043 3,629,938
Treasury stock (139,262) (139,259)
Total shareholders’ equity 5,409,651 4,913,564
Accumulated other comprehensive income
Unrealized holding gain and loss on securities (16,420) 61,902
Unrealized gain and loss from hedging
(20,352) (10,639)
instruments
Adjustment for revaluation of the accounts of the
consolidated subsidiaries based on general price (35,632) (36,498)
level accounting
Translation adjustments (1,046,160) (906,200)
Remeasurements of defined benefit plans (226,798) (77,536)
Total accumulated other comprehensive income (1,345,362) (968,971)
Non-controlling interests 360,484 395,233
Total net assets 4,424,773 4,339,826
Total liabilities and net assets 16,976,709 16,452,068

-6-
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

(2) Consolidated Statement of Income and Consolidated Statement of Comprehensive Income

Consolidated statement of income

(in millions of yen)

FY2019 FY2020
(From April 1, 2019 (From April 1, 2020
To March 31, 2020) To March 31, 2021)

Net sales 9,878,866 7,862,572

Cost of sales 8,442,905 6,811,747
Gross profit 1,435,961 1,050,825
Selling, general and administrative expenses
Advertising expenses 280,801 232,534
Service costs 66,509 113,863
Provision for warranty costs 122,991 94,797
Other selling expenses 220,981 101,764
Salaries and wages 387,757 365,551
Retirement benefit expenses 21,438 17,773
Supplies 2,348 1,548
Depreciation and amortization 63,465 54,161
Provision for doubtful accounts 109,659 33,234
Amortization of goodwill 1,681 1,058
Other 198,800 185,193
Total selling, general and administrative expenses 1,476,430 1,201,476
Operating loss (40,469) (150,651)
Non-operating income
Interest income 21,263 13,109
Dividends income 7,287 3,097
Equity in earnings of affiliates 86,547 ―
Derivative gain 59,757 ―
Exchange gain ― 42,428
Miscellaneous income 9,970 22,846
Total non-operating income 184,824 81,480
Non-operating expenses
Interest expense 10,874 36,483
Equity in losses of affiliates ― 55,861
Derivative loss ― 34,158
Exchange loss 63,244 ―
Miscellaneous expenses 26,188 25,557
Total non-operating expenses 100,306 152,059
Ordinary income (loss) 44,049 (221,230)

-7-
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

(in millions of yen)

FY2019 FY2020
(From April 1, 2019 (From April 1, 2020
To March 31, 2020) To March 31, 2021)

Special gains
Gain on sales of fixed assets 11,246 19,032
Compensation income 32,813 ―
Subsidy income and others ― 6,924
Other 8,303 980
Total special gains 52,362 26,936
Special losses
Loss on sales of fixed assets 6,026 2,195
Loss on disposal of fixed assets 17,914 13,892
Impairment loss 540,642 9,109
Compensation for suppliers and others 63,992 1,161
Special addition to retirement benefits 15,422 57,466
Loss on shutdowns and others due to COVID-19 13,894 43,499
Other 11,543 17,718
Total special losses 669,433 145,040
Loss before income taxes (573,022) (339,334)
Income taxes-current 64,487 76,671
Income taxes-deferred 28,669 15,924
Total income taxes 93,156 92,595
Net loss (666,178) (431,929)
Net income attributable to non-controlling interests 5,038 16,768
Net loss attributable to owners of parent (671,216) (448,697)

-8-
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

Consolidated statement of comprehensive income

(in millions of yen)

FY2019 FY2020
(From April 1, 2019 (From April 1, 2020
To March 31, 2020) To March 31, 2021)

Net loss (666,178) (431,929)

Other comprehensive income
Unrealized holding gain and loss on securities (43,401) 81,335
Unrealized gain and loss from hedging instruments (24,671) 9,752
Adjustment for revaluation of the accounts of the
consolidated subsidiaries based on general price level (5,470) (1,309)
accounting
Translation adjustments (239,385) 152,515
Remeasurements of defined benefit plans (64,492) 149,925
The amount for equity method company portion (40,550) (2,217)
Total other comprehensive income (417,969) 390,001
Comprehensive income (1,084,147) (41,928)
(Breakdown of comprehensive income)
Comprehensive income attributable to owners of
(1,076,234) (72,306)
parent
Comprehensive income attributable to non-controlling
(7,913) 30,378
interests

-9-
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

(3) Consolidated Statement of Changes in Net Assets

FY 2019 (From April 1, 2019 To March 31, 2020)
(in millions of yen)
Accumulated other comprehensive
Shareholders' equity
income
Unrealized Unrealized gain
Total
Retained holding gain and loss from
Common stock Capital surplus Treasury stock shareholders'
earnings and loss on hedging
equity
securities instruments
Balance at the beginning of current
605,814 814,682 4,961,980 (139,457) 6,243,019 30,004 4,762
period
Cumulative effects of changes in
(14,353) (14,353)
accounting policies
Restated balance 605,814 814,682 4,947,627 (139,457) 6,228,666 30,004 4,762
Changes of items during the period

Cash dividends paid (150,652) (150,652)

Net loss attributable to owners of
(671,216) (671,216)
parent
Purchase of treasury stock (2) (2)
Disposal of treasury stock 5 197 202
Changes in the scope of
(108) (108)
consolidation
Changes in the scope
(608) (608)
of equity method
Changes in interests by purchase
(2) (2)
of subsidiaries’ shares
Changes in interests by sales of
3,620 3,620
subsidiaries’ shares
Changes in affiliated companies’
(249) (249)
interests in its subsidiaries
Net changes of items other than
(46,424) (25,114)
those in shareholders’ equity
Total changes of items during the
3,374 (822,584) 195 (819,015) (46,424) (25,114)
period
Balance at the end of current period 605,814 818,056 4,125,043 (139,262) 5,409,651 (16,420) (20,352)

Accumulated other comprehensive income

Adjustment for
revaluation of the
Total
accounts of the
Remeasurements accumulated Non-controlling Total net
consolidated Translation interests assets
of defined other
subsidiaries adjustments
benefit plans comprehensive
based on general
income
price level
accounting
Balance at the beginning of current
(30,882) (790,131) (154,097) (940,344) 320,835 5,623,510
period
Cumulative effects of changes in
(79) (14,432)
accounting policies
Restated balance (30,882) (790,131) (154,097) (940,344) 320,756 5,609,078
Changes of items during the period

Cash dividends paid (150,652)

Net loss attributable to owners of
(671,216)
parent
Purchase of treasury stock (2)
Disposal of treasury stock 202
Changes in the scope of
(108)
consolidation
Changes in the scope
(608)
of equity method
Changes in interests by purchase
(2)
of subsidiaries’ shares
Changes in interests by sales of
3,620
subsidiaries’ shares
Changes in affiliated companies’
(249)
interests in its subsidiaries
Net changes of items other than
(4,750) (256,029) (72,701) (405,018) 39,728 (365,290)
those in shareholders’ equity
Total changes of items during the
(4,750) (256,029) (72,701) (405,018) 39,728 (1,184,305)
period
Balance at the end of current period (35,632) (1,046,160) (226,798) (1,345,362) 360,484 4,424,773

- 10 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

FY 2020 (From April 1, 2020 To March 31, 2021)

(in millions of yen)
Accumulated other comprehensive
Shareholders' equity
income
Unrealized Unrealized gain
Total
Retained holding gain and loss from
Common stock Capital surplus Treasury stock shareholders'
earnings and loss on hedging
equity
securities instruments
Balance at the beginning of current
605,814 818,056 4,125,043 (139,262) 5,409,651 (16,420) (20,352)
period
Cumulative effects of changes in
(46,844) (46,844)
accounting policies
Restated balance 605,814 818,056 4,078,199 (139,262) 5,362,807 (16,420) (20,352)
Changes of items during the period
Net loss attributable to owners of
(448,697) (448,697)
parent
Purchase of treasury stock (494) (494)
Disposal of treasury stock 497 497
Changes in the scope of
198 198
consolidation
Changes in the scope
238 238
of equity method
Changes in interests by purchase
(964) (964)
of subsidiaries’ shares
Changes in affiliated companies’
(21) (21)
interests in its subsidiaries
Net changes of items other than
78,322 9,713
those in shareholders’ equity
Total changes of items during the
(985) (448,261) 3 (449,243) 78,322 9,713
period
Balance at the end of current period 605,814 817,071 3,629,938 (139,259) 4,913,564 61,902 (10,639)

Accumulated other comprehensive income

Adjustment for
revaluation of the
Total
accounts of the
Remeasurements accumulated Non-controlling Total net
consolidated Translation interests assets
of defined other
subsidiaries adjustments
benefit plans comprehensive
based on general
income
price level
accounting
Balance at the beginning of current
(35,632) (1,046,160) (226,798) (1,345,362) 360,484 4,424,773
period
Cumulative effects of changes in
(46,844)
accounting policies
Restated balance (35,632) (1,046,160) (226,798) (1,345,362) 360,484 4,377,929
Changes of items during the period
Net loss attributable to owners of
(448,697)
parent
Purchase of treasury stock (494)
Disposal of treasury stock 497
Changes in the scope of
198
consolidation
Changes in the scope
238
of equity method
Changes in interests by purchase
(964)
of subsidiaries’ shares
Changes in affiliated companies’
(21)
interests in its subsidiaries
Net changes of items other than
(866) 139,960 149,262 376,391 34,749 411,140
those in shareholders’ equity
Total changes of items during the
(866) 139,960 149,262 376,391 34,749 (38,103)
period
Balance at the end of current period (36,498) (906,200) (77,536) (968,971) 395,233 4,339,826

- 11 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

(4) Consolidated Statement of Cash Flows

(in millions of yen)
FY2019 FY2020
(From April 1, 2019 (From April 1, 2020
To March 31, 2020) To March 31, 2021)
Cash flows from operating activities
Loss before income taxes (573,022) (339,334)
Depreciation and amortization (for fixed assets excluding leased
384,116 258,414
vehicles)
Depreciation and amortization (for long term prepaid expenses) 43,311 53,130
Depreciation and amortization (for leased vehicles) 438,488 397,162
Impairment loss 540,642 9,109
Increase (decrease) in allowance for doubtful receivables 21,110 (33,408)
Provision for residual value risk of leased vehicles (net changes) 39,775 (20,517)
Interest and dividends income (28,550) (16,206)
Interest expense 200,816 181,392
Equity in losses (earnings) of affiliates (86,547) 55,861
Loss (gain) on sales of fixed assets (5,220) (16,837)
Loss on disposal of fixed assets 17,914 13,892
Decrease (increase) in trade notes and accounts receivable 141,882 (139,212)
Decrease (increase) in sales finance receivables 667,270 773,543
Decrease (increase) in inventories (118,578) 282,862
Increase (decrease) in trade notes and accounts payable (255,686) 23,257
Other (104,581) (50,638)
Subtotal 1,323,140 1,432,470
Interest and dividends received 29,195 19,828
Proceeds from dividends income from affiliates accounted for by
173,796 99,300
equity method
Interest paid (204,120) (180,315)
Income taxes paid (136,157) (48,494)
Net cash provided by (used in) operating activities 1,185,854 1,322,789
Cash flows from investing activities
Net decrease (increase) in short-term investments 874 269
Purchase of fixed assets (464,219) (362,377)
Proceeds from sales of fixed assets 49,242 49,536
Purchase of leased vehicles (1,114,850) (819,928)
Proceeds from sales of leased vehicles 743,759 710,622
Payments of long-term loans receivable (607) (112)
Collection of long-term loans receivable 735 796
Purchase of investment securities (11,776) (778)
Proceeds from sales of investment securities 2,648 2,951
Purchase of shares of subsidiaries’ resulting in changes in the
(933) ―
scope of consolidation
Proceeds from sales of subsidiaries’ shares resulting in changes
1,746 8,988
in the scope of consolidation
Net decrease (increase) in restricted cash 85,579 40,804
Other (885) 108
Net cash provided by (used in) investing activities (708,687) (369,121)

- 12 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

(in millions of yen)

FY2019 FY2020
(From April 1, 2019 (From April 1, 2020
To March 31, 2020) To March 31, 2021)
Cash flows from financing activities
Net increase (decrease) in short-term borrowings 509,217 (1,055,807)
Proceeds from long-term borrowings 1,655,629 2,071,366
Proceeds from issuance of bonds 160,124 1,433,806
Repayments of long-term borrowings (1,718,635) (2,254,174)
Redemption of bonds (571,399) (772,585)
Proceeds from share issuance to non-controlling shareholders 9,560 2,877
Purchase of treasury stock (2) ―
Repayments of lease obligations (37,261) (49,191)
Cash dividends paid (150,652) ―
Cash dividends paid to non-controlling interests (17,086) (15,020)
Payments from changes in ownership interests in subsidiaries that
― (964)
do not result in change in scope of consolidation
Proceeds from changes in ownership interests in subsidiaries that do
5,011 ―
not result in change in scope of consolidation
Net cash provided by (used in) financing activities (155,494) (639,692)
Effects of exchange rate changes on cash and cash equivalents (43,954) 76,934
Increase (decrease) in cash and cash equivalents 277,719 390,910
Cash and cash equivalents at beginning of the period 1,359,058 1,642,981
Increase due to inclusion in consolidation 6,204 135
Cash and cash equivalents at end of the period 1,642,981 2,034,026

- 13 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

(5) Notes to Consolidated Financial Statements

(Notes to events and conditions which indicate there could be substantial doubt about going concern assumption)
None

(Basis of consolidated financial statements)

Number of Consolidated Subsidiaries and Companies Accounted for by the Equity Method

(1) Consolidated subsidiaries: 210 companies (Domestic 75, Overseas 135)

(2) Companies Accounted for by the Equity Method

Unconsolidated subsidiaries: 11 companies (Domestic 6, Overseas 5)

Affiliates: 33 companies (Domestic 18, Overseas 15)

(3) Change in the Scope of Consolidation and Equity Method

Number of companies newly included in the scope of consolidation; 15 companies
Number of companies excluded from the scope of consolidation; 2 companies
Number of companies newly accounted for by the equity method; 1 company
Number of companies ceased to be accounted for by the equity method; 6 companies
The increases in the number of consolidated subsidiaries were mainly due to reexamination of the scope of
the consolidated companies and companies to which the equity method is applied to strengthen governance
and other decreases were mainly due to sale of their shares.

(Changes in accounting policies)

1) Financial Accounting Standards Board (FASB) Accounting Standards Codification (ASC) No. 326, “Financial
Instruments—Credit Losses”
At foreign subsidiaries and affiliates that apply US GAAP, Financial Accounting Standards Board (FASB) ASC
No. 326, “Financial Instruments—Credit Losses” has been adopted from the beginning of the fiscal year ended
March 31, 2021.
With this adoption, the method for measurement of financial instruments was reviewed and impairment losses
were recognized on financial assets using the current expected credit loss model.
In adopting the accounting standard, in accordance with the transitional treatment, the cumulative effect of
adoption of the standard was recognized on the date of the start of adoption, and was added to or subtracted from
retained earnings at the beginning of the fiscal year ended March 31, 2021.
As a result, for the effects of this revision based on the requirement of the standard as transition disclosures, the
balance at the beginning of the fiscal year ended March 31, 2021 of allowance for doubtful accounts (included in
current assets) increased by ¥62,965 million (decrease of current assets), and deferred tax liabilities (included in
long-term liabilities) and retained earnings decreased by ¥16,121 million and ¥46,844 million, respectively.

2) Accounting treatment of bond issuance costs

The Group issued bonds in the second quarter of the fiscal year ended March 31, 2021 with the purpose of securing
medium- to long-term funding in order to flexibly respond to COVID-19 and other changes in the internal and
external environment.
As a result, from the second quarter of the fiscal year ended March 31, 2021, bond issuance costs associated with
the bonds issued by the Company and its domestic subsidiaries, which had been previously fully charged to
expenses when incurred, are amortized using the effective interest method over the term of redemption. This is
because bond issuance costs are financing costs in nature like bond interest, and that the effective interest method
of amortization applied in international accounting standards will more appropriately reflect the Group’s current
financing activities in the Consolidated Financial Statements.
Due to this change, ordinary loss and loss before income taxes for the fiscal year ended March 31, 2021 each
decreased by ¥7,224 million. This change in the accounting policy is not applied retrospectively as there is no
material effect on the Consolidated Financial Statements for past periods.

- 14 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

(Additional information)
Adoption of tax effect accounting for the transition from the consolidated taxation system to the group tax sharing
system
The Company and some of its domestic subsidiaries have been adopted “Practical Solution on the Treatment of
Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System”
(PITF No. 39, March 31, 2020) and deferred tax assets and liabilities are based on tax law provisions in place prior
to the revision prescribing transition from the consolidated taxation system to the group tax sharing system (Act
No. 8 of 2020).

- 15 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

(Segments of an enterprise and related information)

【Segment information】
1. General information about reportable segments
The reportable segments of the Group are components for which discrete financial information is available and
whose operating results are regularly reviewed by the Executive Committee to make decision about resource
allocation and to assess their performance.
Businesses of the Group are segmented into Automobile and Sales financing based on feature of products and
services. The Automobile business includes manufacturing and sales of vehicles and parts. The Sales financing
business provides sales finance service and leasing to support sales activities of the above business.

2. Calculation method of net sales and profits or losses by reportable segments

In principle, the accounting method for the reportable segments is the same as basis of preparation for the
consolidated financial statements.
The segment profits are based on operating income. Inter-segment sales are based on the price in arms-lengths
transaction.

3. Net sales and profits or losses by reportable segments

The Year Ended March 31, 2020 (From April 1, 2019 To March 31, 2020)
(in millions of yen)
Reportable segments Elimination of
The year ended
Sales inter-segment
Automobile Total March 31, 2020
financing transactions
Net sales
Sales to third parties 8,766,016 1,112,850 9,878,866 ― 9,878,866
Inter-segment sales or
149,894 50,427 200,321 (200,321) ―
transfers
Total 8,915,910 1,163,277 10,079,187 (200,321) 9,878,866
Segment profits (losses) (264,182) 210,530 (53,652) 13,183 (40,469)

The Year Ended March 31, 2021 (From April 1, 2020 To March 31, 2021)
(in millions of yen)
Reportable segments Elimination of
The year ended
Sales inter-segment
Automobile Total March 31, 2021
financing transactions
Net sales
Sales to third parties 6,883,088 979,484 7,862,572 ― 7,862,572
Inter-segment sales or 105,940 40,540 146,480 (146,480) ―
transfers
Total 6,989,028 1,020,024 8,009,052 (146,480) 7,862,572
Segment profits (losses) (437,021) 267,880 (169,141) 18,490 (150,651)

- 16 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

[Consolidated Financial Statements by Business Segments]

*Regarding summarized consolidated statement of income and summarized consolidated statement of cash flows for
the prior fiscal year, the Sales financing segment consists of NISSAN FINANCIAL SERVICES CO．，LTD．
(Japan), Nissan Motor Acceptance Corporation (U.S.A.), NR FINANCE MEXICO, S.A. de C.V. (Mexico),
Dongfeng Nissan Auto Finance Co., Ltd. (China), other 10 companies and the sales finance operations of Nissan
Canada, Inc. (Canada).

*Regarding summarized consolidated statement of income and summarized consolidated statement of cash flows for
the current fiscal year, the Sales financing segment consists of NISSAN FINANCIAL SERVICES CO．，LTD．
(Japan), Nissan Motor Acceptance Corporation (U.S.A.), NR FINANCE MEXICO, S.A. de C.V. (Mexico),
Dongfeng Nissan Auto Finance Co., Ltd. (China), other 11 companies and the sales finance operations of Nissan
Canada, Inc. (Canada).

*The financial data on the Automobile & Eliminations represent the differences between the consolidated figures
and those for the Sales financing segment.

1) Summarized consolidated statement of income by business segments

(in millions of yen)
Automobile & Eliminations Sales financing Consolidated total
FY2019 FY2020 FY2019 FY2020 FY2019 FY2020
(From April 1, 2019 (From April 1, 2020 (From April 1, 2019 (From April 1, 2020 (From April 1, 2019 (From April 1, 2020
To March 31, 2020) To March 31, 2021) To March 31, 2020) To March 31, 2021) To March 31, 2020) To March 31, 2021)

Net sales 8,715,589 6,842,548 1,163,277 1,020,024 9,878,866 7,862,572

Cost of sales 7,671,103 6,155,814 771,802 655,933 8,442,905 6,811,747

Gross profit 1,044,486 686,734 391,475 364,091 1,435,961 1,050,825

Operating income as a
(2.9%) (6.1%) 18.1% 26.3% (0.4%) (1.9%)
percentage of net sales
Operating income (loss) (250,999) (418,531) 210,530 267,880 (40,469) (150,651)

Financial income / expenses, net 17,697 (20,603) (21) 326 17,676 (20,277)
Other non-operating income and
68,450 (52,445) (1,608) 2,143 66,842 (50,302)
expenses, net
Ordinary income (loss) (164,852) (491,579) 208,901 270,349 44,049 (221,230)

Income (loss) before income

(776,081) (614,720) 203,059 275,386 (573,022) (339,334)
taxes
Net income (loss) attributable
(815,709) (636,943) 144,493 188,246 (671,216) (448,697)
to owners of parent

- 17 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

2) Summarized consolidated statement of cash flows by business segments

(in millions of yen)

Automobile & Eliminations Sales Financing Consolidated total

FY2019 FY2020 FY2019 FY2020 FY2019 FY2020
(From April 1, 2019 (From April 1, 2020 (From April 1, 2019 (From April 1, 2020 (From April 1, 2019 (From April 1, 2020
To March 31, 2020) To March 31, 2021) To March 31, 2020) To March 31, 2021) To March 31, 2020) To March 31, 2021)

Cash flows from operating

(212,474) (76,490) 1,398,328 1,399,279 1,185,854 1,322,789
activities
Cash flows from investing
(428,541) (314,530) (280,146) (54,591) (708,687) (369,121)
activities

(Free Cash flow) (641,015) (391,020) 1,118,182 1,344,688 477,167 953,668

Cash flows from financing

847,555 733,152 (1,003,049) (1,372,844) (155,494) (639,692)
activities
Effects of exchange rate changes
(27,774) 59,385 (16,180) 17.549 (43,954) 76,934
on cash and cash equivalents
Increase (decrease) in cash and
178,766 401,517 98,953 (10,607) 277,719 390,910
cash equivalents
Cash and cash equivalents at
1,309,580 1,494,550 49,478 148,431 1,359,058 1,642,981
beginning of the period
Increase due to inclusion in
6,204 67 ― 68 6,204 135
consolidation
Cash and cash equivalents at
1,494,550 1,896,134 148,431 137,892 1,642,981 2,034,026
end of the period

- 18 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

[Net sales and profits or losses by region]

The Year Ended March 31, 2020 (From April 1, 2019 To March 31, 2020)
(in millions of yen)
Other
North
Japan
America
Europe Asia overseas Total Eliminations Consolidated
countries
Net sales
(1) Sales to third
2,143,357 4,713,660 1,283,945 890,274 847,630 9,878,866 ― 9,878,866
parties
(2) Inter-segment
sales
1,841,139 426,895 195,009 464,557 36,280 2,963,880 (2,963,880) ―
Total 3,984,496 5,140,555 1,478,954 1,354,831 883,910 12,842,746 (2,963,880) 9,878,866
Operating income
(51,671) (15,937) (29,040) 39,097 (3,965) (61,516) 21,047 (40,469)
(loss)
Notes: 1. Regions represent the location of the Company and its group companies.
2. Areas are segmented based on their geographical proximity and their mutual operational relationship.
3. Major countries and areas which belong to segments other than Japan are as follows:
(1) North America : The United States of America, Canada, and Mexico
(2) Europe : France, The United Kingdom, Spain, Russia, and other European countries
(3) Asia : China, Thailand, India, and other Asian countries
(4) Other overseas countries : Oceania, Middle East, South Africa, and Central & South America excluding
Mexico

The Year Ended March 31, 2021 (From April 1, 2020 To March 31, 2021)
(in millions of yen)
Other
North
Japan
America
Europe Asia overseas Total Eliminations Consolidated
countries
Net sales
(1) Sales to third
1,881,589 3,685,479 921,479 763,852 610,173 7,862,572 ― 7,862,572
parties
(2) Inter-segment
1,326,418 289,719 173,663 392,747 13,747 2,196,294 (2,196,294) ―
sales
Total 3,208,007 3,975,198 1,095,142 1,156,599 623,920 10,058,866 (2,196,294) 7,862,572
Operating income
(203,131) 46,338 (30,683) 23,180 1,533 (162,763) 12,112 (150,651)
(loss)
Notes: 1. Regions represent the location of the Company and its group companies.
2. Areas are segmented based on their geographical proximity and their mutual operational relationship.
3. Major countries and areas which belong to segments other than Japan are as follows:
(1) North America : The United States of America, Canada, and Mexico
(2) Europe : France, The United Kingdom, Spain, Russia, and other European countries
(3) Asia : China, Thailand, India, and other Asian countries
(4) Other overseas countries : Oceania, Middle East, South Africa, and Central & South America excluding
Mexico

- 19 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

【Related information】
[Information about net sales by geographical area]
The Year Ended March 31, 2020 (From April 1, 2019 To March 31, 2020)
(in millions of yen)
North America Other
Japan Europe Asia overseas Total
U.S.A. countries
1,727,634 4,612,528 3,786,604 1,429,733 1,101,675 1,007,296 9,878,866
Notes: 1. Regions represent customers’ location.
2. Areas are segmented based on their geographical proximity and their mutual operational relationship.
3. Major countries and areas which belong to segments other than Japan are as follows:
(1) North America : The United States of America, Canada, and Mexico
(2) Europe : France, The United Kingdom, Spain, Russia, and other European countries
(3) Asia : China, Thailand, India, and other Asian countries
(4) Other overseas countries : Oceania, Middle East, South Africa, and Central & South America excluding
Mexico, etc.

The Year Ended March 31, 2021 (From April 1, 2020 To March 31, 2021)
(in millions of yen)
North America Other
Japan Europe Asia overseas Total
U.S.A. countries
1,571,624 3,608,509 2,969,154 1,029,274 951,736 701,429 7,862,572
Notes: 1. Regions represent customers’ location.
2. Areas are segmented based on their geographical proximity and their mutual operational relationship.
3. Major countries and areas which belong to segments other than Japan are as follows:
(1) North America : The United States of America, Canada, and Mexico
(2) Europe : France, The United Kingdom, Spain, Russia, and other European countries
(3) Asia : China, Thailand, India, and other Asian countries
(4) Other overseas countries : Oceania, Middle East, South Africa, and Central & South America excluding
Mexico, etc.

- 20 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

(Amounts per share)

(Yen)
FY2019 FY2020
(From April 1, 2019 (From April 1, 2020
To March 31, 2020) To March 31, 2021)
Net assets per share 1,038.95 1,007.80

Basic net loss per share (171.54) (114.67)

Diluted earnings per share ― ―

Notes: The basis for calculation of the basic net loss per share and the diluted earnings per share is as follows.

FY2019 FY2020
(From April 1, 2019 (From April 1, 2020
To March 31, 2020) To March 31, 2021)
Basic net loss per share:
Net loss attributable to owners of parent (Millions
(671,216) (448,697)
of yen)
Net loss attributable to owners of parent relating to
(671,216) (448,697)
common stock (Millions of yen)
Average number of shares of common stock during
3,912,975 3,912,895
the fiscal year (Thousands of shares)
Diluted earnings per share:
Increase in shares of common stock (Thousands of
― ―
shares)
(Exercise of share subscription rights (Thousands
― ―
of shares))

(Significant subsequent events)

The Company decided to sell all of the shares in Daimler AG held by the Company on May 5, 2021 and executed the
sale at ¥150.8 billion. The proceeds from the sale will allow Nissan to further strengthen and enhance its business
competitiveness, including investments to promote electrification. As a result, ¥76,094 million of the gain on sale of
investment securities is expected to be recorded as extraordinary income in the first quarter of the fiscal year ending
March 2022.

- 21 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

4. Other Information

The former Representative Directors of the Company were indicted on suspicion of violating the Financial
Instruments and Exchange Act (charged with submitting false Securities Reports) and a former Representative
Director and Chairman was additionally indicted on suspicion of violating the Companies Act (charged with
aggravated breach of trust). In conjunction with these indictments, the Company itself was indicted on suspicion of
violating the Financial Instruments and Exchange Act. The Company took this situation very seriously and formed
a Special Committee for Improving Governance (SCIG) consisting of several independent third parties and
independent Outside Directors of the Company. On March 27, 2019, Nissan’s board of directors received a report
from the SCIG that summarizes the committee’s proposals for governance improvements and recommends a
framework for the best governance as a foundation for Nissan business operations in the future. The Company has
made the transition to a three statutory committee format.

On September 9, 2019, the board of directors of the Company received a report from the Audit Committee on the
internal investigation into misconduct led by the Company’s former chairman and others. As stated in the timely
disclosure released on September 9, 2019 “Nissan board receives report on misconduct led by former chairman and
others”, the report confirmed specific instances of misconduct. Among these instances, Ghosn’s personal use of the
company’s assets and improper payments of financial “incentives” to Nissan distributors instructed by Ghosn are as
follows. Since September 9, 2019, there have been no changes made to the following contents at the time of
submission of this report. In the future, if significant progress occurs in the following contents, we will disclose in
accordance with relevant laws and regulations.

A) Ghosn’s personal use of the company’s assets

The report confirms that Ghosn used the company’s assets for personal benefit, including:
• purchase of residences for exclusive personal use in Beirut and Rio de Janeiro using roughly 27 million U.S.
dollars in investment funds from Zi-A Capital, a Nissan subsidiary established under the guise of investing in
promising technology start-ups, and further misuse of other company funds to purchase or rent additional
residences for personal use;
• payment of sums totaling more than 750,000 U.S. dollars to Ghosn’s sister on the basis of a fictitious consulting
contract, starting in 2003 and extending for over 10 years with no evidence of any services having been rendered;
• personal use of the corporate jets by Ghosn and members of his family;
• improper use of expenses toward family vacations and gifts of a personal nature;
• instruction of donations totaling more than 2 million U.S. dollars of company funds to universities in Ghosn’s
ancestral home country of Lebanon with no legitimate business purpose;
• transfer to Nissan in 2008 of foreign exchange swap contracts bearing unrealized losses of roughly 1.85 billion
yen, based on a deceptive explanation to the Company’s board regarding the nature of the transaction (in 2009,
the swap contracts were secretly transferred back to a company related to Ghosn after being flagged as improper
by Japan’s financial authorities);
• improper payments totaling roughly 7.8 million Euros to Ghosn from a joint venture established by Nissan and
MITSUBISHI MOTORS CORPORATION, paid from April 2018 onward under the pretext of a salary and an
employment contract with the joint venture, despite the fact that no contract had been approved by the joint
venture’s board of directors.

B) Improper payments of financial “incentives” to Nissan distributors instructed by Ghosn

Ghosn instructed a Nissan subsidiary to make payments totaling 14.7 million U.S. dollars to a distributor managed
by an acquaintance outside Japan who had previously offered him personal financial support (a fact Ghosn withheld
from Nissan’s board of directors and the relevant departments within the company). Payments were made under the
pretext of covering expenses for special business projects and were approved through Nissan’s CEO Reserve, an
emergency budget over which only Ghosn and a selected few direct subordinates had approval authority.

Ghosn also instructed a Nissan subsidiary to make payments totaling 32 million U.S. dollars to a distributor outside
Japan, an employee of which transferred tens of millions of dollars to Ghosn and a company related to Ghosn (a fact
Ghosn withheld from Nissan’s board of directors and the relevant departments within the company). Payments were
made under the pretext of granting financial incentives to the distributor in question and were approved through the
CEO Reserve.

The Company has filed a provisional disposition order in the British Virgin Islands against Ghosn and related parties
for a luxury yacht and has filed a lawsuit based on the order seeking damages, etc. Also, on February 12, 2020, the
Company has filed a lawsuit against Carlos Ghosn in Japan, seeking recovery of damages. Going forward, the
Company will continue to take necessary measures based on the findings of the Company’s internal investigation,
including legal action to claim damages, in order to account for the responsibility of the former chairman and others.
- 22 -
 Nissan Motor Co., Ltd. (7201)
FY2020 Consolidated Financial Results

The Company has received a written notice of commencement of trial procedures dated December 13, 2019, from
the Commissioner of the FSA. In response to this written notice, on December 23, 2019, the Company has submitted
a written answer not disputing the alleged facts and the amount of the administrative monetary penalty. After that,
the Company has received the administrative monetary penalty payment order, dated February 27, 2020, of
2,424,895,000 yen from the Commissioner of the FSA. In accordance with the administrative monetary penalty
payment order and payment notice, the Company has made the penalty payment of 1,406,250,000 yen, which
became due.

In December 2019, new management has been established, whose members have been selected by the Nomination
Committee. As demonstrated by the establishment of new management, strengthening of the supervisory function
of internal audit, and so on, the Company is working on various countermeasures to prevent recurrence.
The Company continues its efforts to improve its governance, including ongoing implementation of the improvement
measures stated in the Improvement Measures Status Report submitted to Tokyo Stock Exchange on January 16,
2020, as well as reviewing necessary improvements from time to time going forward. The Company also continues
to reform its corporate culture, renew corporate ethics, disclose corporate information appropriately and enhance
compliance-focused management.

- 23 -