Nissan Motor Company, Ltd.

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Nissan Motor Company, Ltd.

• for
• Student Managed Investment Portfolio
• by
• Michael Gossner

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Outline of Presentation

• Company Snapshot
• Company Outlook
• News and Events
• Industry Comparison and Outlook
• Financial and Risk Evaluation
• Recommendation

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Company Snapshot

• Stock Nissan Motor Co., Ltd. (ADR)
• Ticker NSANY
• Industry Auto Makers
• 52 Week Range 12.76 - 16.70
• Price as of 03/06/03 13.96

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Company Snapshot

• Designs, produces and sells more than 2.5 million
  passenger cars and commercial vehicles in more
  than 190 countries.
• In April of 2000 the company implemented the
  Nissan Revival Plan. Upon attainment of the
  goals, the Company embarked upon NISSAN 180
• Major production sites - Japan, United States,
  Mexico, the United Kingdom and Spain.

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Company Snapshot

SP 500
Nissan
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Company Outlook

• NISSAN 180

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Company Outlook

• Renault - Nissan Alliance

Renault Vel Satis with Engine
Nissan 32.5 Liter V-6 Engine
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News and Recent Events

• December 2002 - Domestic production, overseas
  production, domestic sales and exports all rose
  over 2001's levels. First time in 13 years these
  four indexes have simultaneously surpassed the
  previous year's results.
• January 2003 - Nissan's domestic production,
  overseas production, domestic sales and exports
  all rose over the same month last year, marking
  the first time in four months, since September
  2002, that these four indexes have simultaneously
  registered year-on-year growth.

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News and Recent Events

• January 2003 - Combined Renault and Nissan sales
  came to 5,139,505 units in 2002, up 2.9 over
  2001. Nissan and Renault sold a total of
  2,735,530 and 2,403,975 vehicles, respectively.
  The Renault-Nissan Alliance global market share
  came to 9.1 (4.2 for the Renault group and 4.9
  for Nissan), ranking the Alliance among the
  world's five leading automakers.

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News and Recent Events

• February 2003 - Announced that its patented
  pre-crash seatbelt technology will be made
  available to competitors through a licensing
  process.

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News and Recent Events

• February 2003 - Announced the domestic launch of
  the all-new Teana, which has been developed
  around the concept of "a luxury sedan for
  sophisticated drivers."

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News and Recent Events

• February 2003 - Announced the domestic launch of
  the fully redesigned Skyline Coupe.  Models
  equipped with automatic and manual transmission
  were put on the market across the country.

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News and Recent Events

• January 2003 - Nissan reveals all-new 2004
  full-size truck and Triant concept at NAIAS

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News and Recent Events

• January 2003 - Nissan Reveals All-New 2004 Maxima
  and Quest, Infiniti FX45 at NAIAS

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Industry Outlook

• University of Michigan - Auto sales should top
  16.6 million units this year 2002 retreat only
  slightly to 16.5 million units in 2003 and reach
  16.6 million units in 2004 once more. Sales
  should remain "fairly steady
• IRN Inc. - Zero-percent financing automakers
  have offered over the past 12 months has lost its
  marketing punch. Ford an GM have acknowledged
  that sales have gone soft.

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Industry Outlook

• "It's profitless prosperity that we've got going
  on here" - Michael Robinet, CSM Worldwide
• The biggest issue facing automakers is what David
  Cole, Center for Automotive Research in Ann
  Arbor, Mich., calls the industry's "heinous
  competition."

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Industry Comparison

• Stock Mkt Cap Sales
• Nissan Motor ADR 33,065.0 49,396
• Industry Average 5,507 12,081
• Toyota Motor ADR 88,421 114,133
• Honda Motor ADR 35,371 60,911
• DaimlerChrysler AG 29,376 136,142
• General Motors 17,525 184,057
• Ford Motor 14,203 163,518

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Industry Comparison

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Financial Statements and Analysis

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Financial Analysis
Value Line Estimations

Nissan Revival Plan
Nissan 180
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Financial Analysis

• Nissan 180 Update
• Operating Income (1st Half FY 2002) - 84.5
  increase from 1st half FY 2001
• Consolidated Operating Margin (1st Half FY 2002)
  - Industry Leading 10.6
• Revenues (1st Half FY 2002) - 10.3 Increase
• Global Sales Volume (1st Half FY 2002) - 7.5
  Increase
• Net Income (1st Half FY 2002) - 24.9 Increase

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Financial Analysis

Data Taken From Value Lin and Marketgude
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Financial Analysis - Valuations

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Financial Analysis - Valuations

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Financial Analysis - Valuation

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Financial Analysis - Valuation

• Basic Stock Valuation - 21.35
• Free Cash Flow Valuation - 20.21
• Valuation By Comparables - 21.77
• ValuePro.Net - 24.95
• Average Intrinsic Value - 22.07

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Risk Analysis
RiskGrade 118 Minimum109 Maximum195 Average158

76 Of all U.S. Tickers Are More Risky Than Nissan
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Recommendation

• Buy (To Be Continued..)
• Strong Performance Resulting from Nissan Revival
  Plan
• Strong Expected Performance from Nissan 180
• Industry Outlook favors International Auto-
  Makers over Domestic Producers
• Undervalued Stock and Solid Financials