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Nissan Motor Co., Ltd. Update Report – 4Q 08 & FY 2008 Results High exposure to the North American region a concern Common Stock
Ticker: Target price: Current price:

11 July 2008

7201.T ¥876 ¥858

have calculated the target price based on free of charge at Direct access to the full reportfundamental factors, using a weighted average of target prices obtained by using DCF and comparative valuation methodologies.

Fundamental research indicates a 2% upside in the common stock over the next 6-24 months. We

We downgrade the common stock from a BUY to a HOLD, with a 6-24 month target price of ¥876 per share. The ADR is expected to depreciate approximately 2% over the next 6-24 months. We anticipate neutral currency impact of the Japanese yen against the US dollar over the same period.

Ticker: Target price: Current price:

NSANY US$16.37 US$16.05

We downgrade the ADR (1 ADR = 2 common shares) from a BUY to a HOLD, with a 6-24 month target price of US$16.37.

Analyst: Ujwal Shah Editor: Adil Bahar; PhD Global Research Director: Satish Betadpur, CFA Next news due: 1Q 091 results, 31 July 2008

Investment horizon - short term actionable trading strategies
This report addresses the needs of strategic investors with a long term investment horizon of 6-12 months. If this report is provided to you by your broker under the Global Settlement, you may now also access (free of charge) the short term trading outlook that we publish from time to time for this issuer, looking at the coming 5-30 days for readers with a shorter trading horizon. These are available online only at

Report summary
Nissan Motor Co., Ltd’s (Nissan) 4Q 08 revenues exceeded our expectations while operating performance was marginally below our expectations. We remain skeptical about Nissan’s greater exposure to the North American region. Moreover, the recent steep increase in crude oil prices has resulted in significant weakness in demand and exerts significant pressure on all global automobile companies including Nissan. However we continue to expect the General Overseas Markets (GOM) to continue to experience strong sales volume growth over the next few years. Furthermore, Management’s increasing focus on emerging markets, coupled with strategic joint ventures and partnerships are expected to partially offset the abovementioned negatives. We continue to expect firm prices for basic raw materials, which are expected to contract margins, going forward. However, at current levels we believe the stock appears to be an attractive investment opportunity on fundamental grounds and therefore reiterate the Nissan common stock a BUY.

Currency impact for US investors
The impact by itself of the anticipated currency movements on the ADR (now US$16.05), without considering changes in the share price, is positive and is expected to be: Over 6 months: US$18.65 Over 12 months: US$16.34 Over 24 months: US$16.04

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Refer to page 4 for footnotes