Nissan/InfinitiRemarketing Services

March, 2015

2

Annual US Sales

Global Sales

Did You Know…

130,000

1.4 Mil.

>5 Mil.

~80%

of US Sales Sourced from N. A.

20 in 18

20 Manufacturing CompaniesOperating in 18 Countries

191 Countries/territories world wide

15,000

Global Employees N.A. Employees

3

Nissan North America

Nissan North America, Inc.Nissan North America, Inc. Regional headquarters for NARegional headquarters for NA Sales/marketing, manufacturing, product planning and Part & Sales/marketing, manufacturing, product planning and Part &

ServiceService Opened in July 2008Opened in July 2008 Houses ~2,000 HQ employeesHouses ~2,000 HQ employees

Me

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

2013 2014 By 2017

US Market Share

Nissan Infiniti

8.2% 8.5%10%

4

New Product – Key to our growth

2016 Titan

2014 Murano

2015 Maxima

5

New Infiniti Product Too

Q60 Coupe

QX30

6

Nissan & Infiniti Remarketing

7

Forecasting and performance reporting

Development of advanced analytic tools

Pricing & inventory optimization analysis

System Development & Enhancement

Strategy & Planning

Sales planning and execution

Repping at sales Recon decisions Auction performance

management Marshalling yard “On ground” operational

management

Sales Sales Support

Getting cars ready for sale Inventory management Grounding, titles,

inspections, transportation, Chasing past due processes Policy & Procedure

development Auction Operational

Process Reviews (OPR) Recall coordination

3 Teams of NMAC Remarketing

PilotsPilots Ground CrewGround Crew Air Traffic ControlAir Traffic Control

8

Nissan/Infiniti Remarketing Volumes

Data Source: P&S 10-31-13

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15(F)

Remarketing Volume

9

Vehicle Sources & Sales Channels

Off-LeaseCorp.

VehiclesFleet

RepurchaseRepos

Upstream ClosedInfiniti 1st ChoiceNissan AdvantageMulti-site salesSimulcast Everywhere

In-Lane ClosedMonthly at 6 Core SitesManheim PA, Nashville, Orlando, Chicago, Dallas, Riverside Simulcast & Multi-site

In-Lane Open6 core + 17 more sitesHighline sales, open sales, value sales, salvage, etc.

75%75% 10%10% 15%15%<1%<1%

10

Analytically Drive Approach

Pricing Model

Neural Network/Machine Learning toolMeasures 3,000+ variablesVIN specific floor prices including geographic variances

ATOM(Auction Transfer Optimization Model)

Inventory load balancing across sitesAssignments based on expected net value after transport and cost of timePush and Pull capabilities

iPad DashboardOn the block toolDynamically updates during saleProvides all key data

11

Market Place Evolution

Consignors DealersRetail

Customers

Traditional Approach - Linear

Sell all at same sale Expense Management Recon is an “art” Book values/last prices Upstream vs. in-lane

Inconsistent CRs Stick to trusted sales “Hands on Hoods” Regional arbitrage Book Values Upstream vs. in-lane Only see their stores

More visual evaluation Driving “feel” Trust of the seller Book Values Shopping by visiting

Consignors DealersRetail

Customers

Current Approach – More Sophisticated Linear

Advanced Analytics Accurate pricing models Recon Analytics/ROIs Shotgun sales venues Selling without moving

cars Buyer analyses Right car in the right

sale

Full Market View – can see all retail offers

Advanced analytic tools tell what to buy & how much to pay

Searching multiple sale sites at once

“Walking” cars electronically Much more consistent CRs

Extensive on-line research

Comparing multiple cars from the couch

Car Fax/Auto Check Know what they want

before they visit and know who has it

Negotiating electronically

12

End to EndVisibility &Capability

What’s on the Horizon???

Advanced

Pricing

Models

Hig

h D

ef.

Ph

oto

s

Consumer Friendly CRs

Purchase

Analytics

Rem

ote CR

Writers

Online

Search

Engines

Consignor Direct Sales?Consignor Direct Sales?

Auctioning Vehicles Already Auctioning Vehicles Already Retailed?Retailed?

Automatic Shipping with Buy Back Automatic Shipping with Buy Back Guarantees?Guarantees?

Automatically listing Cars when Automatically listing Cars when Purchased at Auction?Purchased at Auction?

Challenge: Stay on Top of & Ahead of these trendsChallenge: Stay on Top of & Ahead of these trends

Nissan North AmericaNissan North America

Thanks For Your Time!