2. Instructor Bio Jeremy M. Robb, CFA
Jeremy Robb joined Nissan in May 2012 and has worked on both the motor company side as well as for the captive finance company.  Currently, he functions as the Senior Manager over Sales, Strategy and Analytics for Nissan and Infiniti Remarketing Services.  In addition to planning the sales strategy for NIRS, Mr. Robb is the primary contact for Nissan's outside business partners.  Prior to joining Remarketing, he served as the finance controller for NMAC and has worked in Corporate Strategy and Supplier Risk Management.  Mr. Robb had several years of experience in Finance and Financial Services prior to joining Nissan and he graduated from Vanderbilt University with a degree in Economics and Music.  Jeremy Robb has remained a CFA Charterholder since December 2007.
Jeremy M. Robb, CFA
Senior Manager, Remarketing Sales and Strategy
Nissan and Infiniti Remarketing Services
Nissan Motor Acceptance Corporation (NMAC) E: P:

3. Nissan Infiniti Remarketing Services
Auction Academy Presentation
April 2017

4. Nissan Global and US

5. Nissan and Mitsubishi Strategic Alliance
On October 20th 2016, Nissan completed its acquisition of a 34% equity stake in Mitsubishi Motors (MMC) and became its largest shareholder.
Under the terms of the transaction, Nissan Motor purchased million newly issued MMC shares at yen per share.
Nissan and MMC have agreed to cooperate in areas including purchasing, common vehicle platforms, technology-sharing, joint plant utilization and growth markets.
Nissan estimates 60 billion yen in savings next fiscal year.
MMC will also become part of the global Alliance with Nissan and Renault. With the addition of MMC, the Alliance will be in the world's top three automotive groups by global volumes, with sales of 10 million units in fiscal year 2016.

6. Renault Nissan Alliance
Founded in 1999 the alliance continues to be the longest-lasting cross- cultural collaboration among major automakers
Together, Renault and Nissan rank in the top four auto groups globally
The Alliance business platform maximizes synergies
The Alliance has served as a buffer to protect partners during regional downturns
Renault holds a 43.4% stake in Nissan, Nissan holds a 15% stake in Renault

7. Nissan Motor FY16 Q3 Sales Performance: Global
Total Industry Volume*
Retail Volume
vs. FY15
vs. FY15
5.9%
M/S**
6.1%
M/S**
3,993
GLOBAL
+2.6%
67.16
GLOBAL
+4.5%
3,891
64.28
-10.0%
3.50
JAPAN
+0.9%
344
JAPAN
383
3.47
+8.2%
18.59
CHINA
+13.0%
929
CHINA
16.40
859
NORTH AMERICA (U.S.)
16.10
16.26
+1.0% 　
(-0.4%)
(THOUSAND UNITS)
NORTH AMERICA (U.S.)
(MILLION UNITS)
(13.52)
(13.46)
1,490
1,582
+6.2%
　 (+4.2%)
(1,117)
(1,164)
13.51
14.20
EUROPE
+5.1%
540
542
EUROPE
+0.4%
14.80
14.61
OTHERS
-1.3%
619
596
OTHERS
-3.9%
FY15
3Q YTD
FY16
3Q YTD
FY15
3Q YTD
FY16
3Q YTD
* Nissan’s estimation
** Market Share

8. FY16 Q3 Sales Performance: North America
United States
TIV: million units, -0.4%
Sales: 1,164 k units, +4.2%
Market share: 8.7%, +0.4%
Canada
TIV: 1.55 million units
Sales: 104 k units, +0.4%
Market share: 6.7%, -0.1%
Mexico
TIV: 1.26 million units
Sales: 313 k units, +17.0%
Market share: 24.9%, -0.7%
US RETAIL VOLUME
+4.2%
1,117
1,164
(THOUSAND UNITS)
FY15
3Q YTD
FY16
3Q YTD
US MARKET SHARE
+0.4%
8.3
8.7
(PERCENT)
FY15
3Q YTD
FY16
3Q YTD

9. Strong Market Performance
Nissan has achieved consistent market share growth since 2000.
2016 sales data shows strong growth potential for Nissan.
For Fiscal Years Ended March 31st 1999 – 2016
and Q3 ended December 31st 2016
Source: Motor Intelligence – New Vehicle Sales As of December 31st, 2016

10. Volume Trends – U.S. Only New Vehicle Penetration
Contracts Outstanding
(Thousands)
Note: Vehicles financed through NMAC and IFS
As of December 31st, 2016

11. NMAC Loan Origination Trends – U.S. Only
NMAC continues to maintain a high quality of bookings in its retail loan portfolio
Retail Loan Total Portfolio Tier Distribution as of Dec 31st
New Bookings - Retail (660+ FICO)
Credit Tier
Note: Tier % in dollars. Tier distribution percentages may not total 100% due to rounding
As of December 31st, 2016

12. NMAC Avg. Loan Prin Outstanding & Net Losses – U.S. Only
For the FY ended March 31st
and 9 months ended December 31st

13. NMAC Lease Origination Trends – U.S. Only
NMAC continues to maintain a high quality of bookings in its lease asset portfolio
Retail Lease Total Portfolio Tier Distribution as of Dec 31st
New Bookings - Lease (660+ FICO)
Credit Tier
Note: Tier % in dollars. Tier distribution percentages may not total 100% due to rounding
As of December 31st, 2016

14. NMAC Avg. Lease Prin Outstanding & Net Losses – U.S. Only
For the FY ended March 31st
and 9 months ended December 31st

15. Lease Recovery vs. Base Residual
Portfolio terminations including payoffs at full contract, credit/repo’s, and auction sales netted ALG % (Nissan ALG: %, Infiniti ALG: %)
Primary drivers of NMAC residual decline:
Increased supply of off-lease vehicles available at auction
Normalization of used car market
Customer demand moving away from sedans to CUV, SUV, and truck segments
For the FY ended March 31st
and 9 months ended December 31st Note: Excludes models not securitized in the NALT platform

16. Base Residual Comparison
Compared to other SEC registered lease ABS issuers, Nissan takes a more conservative approach by utilizing an ALG mark-to-market at the time of the transaction
Base Residual Definitions
Nissan GM
Marked-to-market at transaction
ALG Residual (MRM)1
Most Conservative
Marked-to-market at transaction
BMW
Mercedes
ALG Residual
Least Conservative
Determined at Inception
ALG at Origination (No mark-to-market)2
Ford
World Omni
Source: Latest available offering documents as of February 16th, 2017
MRM Residual Values produced by ALG give only partial credit to vehicle options that add little or no value to the resale price of the vehicle (“Maximum Realized MSRP”)
Base residual determined using contract residual, ALG residual, or ALG residual MRM at lease inception

17. Remarketing

18. Remarketing Current State Overview
Industry Volume in Wholesale units has grown each year since In 2016, total auction volume was 6.5M: Off-Lease 3.1M, Fleet/Rental 1.7M and Repo 1.7M. Auction volume is expected to grow by double digit rates in both 2017 and 2018 reaching ~7.2M units in 2017 and then a record 8M in (source Manheim Consulting).
Returns and Auction Inventory are heavily influenced by vehicle mix. Sedans continue to hold values at a lower rate than Truck/SUVs as gas prices remain low and consumers continue to demand and desire Trucks and Crossover units.
NADA cites used car depreciation at 23% in 2016 vs the average of 18%.
Ford Credit has decreased the profit expectation of its financial services arm by $300M in 2016, much of it due to lower used values. Hertz also cut its forward guidance in Q4 and replaced the CEO citing lower used values.
Nissan/Infiniti Remarketing began the Flag Your Infiniti (FYI) program in April 2015 and the Flag Your Nissan program in October This allows the grounding dealer the option to purchase the unit sitting on their lot – mitigating transportation and auction cost, and reducing supply. FYN could move up to 25,000 units annually once mature.
Auction values relative to RV do not take into account units sold in the GPO process, via FYI/FYN, and upstream thus giving a less than holistic view of remarketing values.
Source:

19. Used Vehicle Market Price Indicators
The NADA Used Vehicle Price Index reflects lower overall prices – at a level last seen in 2010
While the Manheim Index remains high relative to historical norms, Manheim’s economist expects used values to decline in due to industry volume
The Black Book Index is off by 5.9% in the past year
Source: NADA Used Card Guide Industry Update March 2017

20. Price Changes in Segments
Overall values have been relatively stable in total, but intra-segment the data is varied.
In December 2016, the only segment with higher prices were Trucks, at 4.3%.
Every other segment, including SUV’s declined YoY with the exception to be Vans.
Source: Cox Automotive Consulting Macro Indicators Dashboard December 2016

21. Industry Economic Viewpoint
Source: Cox Automotive Consulting Spring “Bounce” Declining December 2016

22. Nissan Remarketing Sales Channels
Remarketing Portfolio Manager (“RPM”)
Purchase at grounding
Flag Your Nissan (“FYN”) – Launched on October 24, 2016 Nissan dealers make an offer on eligible off-lease Nissan vehicles grounded at their location
Nissan Advantage Closed Sale (RPM) Daily selection of off-lease Nissan vehicles located throughout dealer network
Online-exclusive
Upstream Channels
Cross-Channel Closed Sale (RPM) Offer extended to both Nissan and Infiniti retailers
Keep up to date
Nissan Closed Weekend Online Event Sale on OVE.com Weekly selection of premium vehicles available online exclusively for Nissan franchises
Closed Sales at Auction
(In-lane and Simulcast Everywhere) High-quality corporate, fleet, and off-lease vehicles offered exclusively to Nissan and Infiniti retailers
Open Sales at Auction
(In-lane, Value, and TRA) Vehicles offered to all buyers