JAMA-CLEPA Business Summit

Venice, 27-28 October 2016

European automotive suppliers meetJapanese vehicle manufacturers

Overview of the Japanese Automobile Industry

Yoshihiro YANOExecutive Director & Secretary GeneralJapan Automobile Manufacturers Assosiation, Inc.

European automotive suppliers meetJapanese vehicle manufacturers

JAMA-CLEPA Business Summit I Venice, Italy I 27 & 28 October 2016

1. About JAMA

2. Current Trends in the Japanese AutomobileIndustry

Contents

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JAMA-CLEPA Business Summit I Venice, Italy I 27 & 28 October 2016

Established: 3 April 1967

Objectives: To promote the sound development of the automobileindustry, domestically and globally, and contribute tosocial and economic welfare.

About JAMA

Current Chairman:Hiroto SAIKAWAChief Competitive Officer & Vice Chairman Nissan Motor Co., Ltd.

Member Companies (14 in total):

Friend of JAMA: General Motors Japan, Ltd.

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JAMA-CLEPA Business Summit I Venice, Italy I 27 & 28 October 2016

2. Current Trends in

the Japanese Automobile Industry

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JAMA-CLEPA Business Summit I Venice, Italy I 27 & 28 October 2016

2.1 Japanese Automakers’Domestic and Overseas Production

Source: JAMA

5

9.278

9.629

10.800

18.095

13.182

10.606

0 10.000 20.000 30.000

2015

2010

2005

Production in Japan

Overseas productionYear

× 1,000 vehicle units

21,406

22,810

27,373

JAMA-CLEPA Business Summit I Venice, Italy I 27 & 28 October 2016

Asia andOceania

15 159

NorthAmerica

2 19

LatinAmerica

7 33

Africa andMiddle East

8 21

Europe

11 21

Region

No. of countries

No. of plants

2.2 Japanese Automakers’ Production Sites* Worldwide(as of 2015)

Japan

1 41

* Excluding plants which only manufacture partsSource: JAMA

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JAMA-CLEPA Business Summit I Venice, Italy I 27 & 28 October 2016

2.3 Japanese Automakers’ Global Production Volumes

Source: JAMA

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JAMA-CLEPA Business Summit I Venice, Italy I 27 & 28 October 2016

Toyota@Burnaston (UK)

Honda@Swindon (UK)

Toyota@Valenciennes (FR)

Nissan@Cantabria (ES)

Mitsubishi Fuso@Tramagal (PT)

Suzuki@Esztergom (HU)

Toyota@Walbrzych (PL)

Toyota@Jelcz Laskowice (PL)

Nissan@Sunderland (UK)

Toyota@Kolin (CZ)

Honda@Swindon (UK)

Nissan@London (UK)

Honda@Offenbach (DE)

Isuzu@Gustavsburg (DE)

Mazda@Oberursel (DE)

Mitsubishi@Trebur (DE)

Toyota@Köln (DE)

Subaru@Ingelheim am Rhein (DE)

Toyota@Nice (FR)

Subaru@Zaventem (BE)

: Production facilities : R&D facilities

Toyota@Ovar (PT)

Toyota@Deeside (UK)

Toyota@Zaventem (BE)

Nissan@Avila (ES)

Nissan@Barcelona (ES)

Nissan@Brussels (BE)

Nissan@Bruhl (DE)

Nissan@Cranfield (UK)

Nissan@Barcelona (ES)

• Production: 14 plants in 7 countries• R&D: 16 centres in 5 countries• Employment: 158,054 people

Suzuki@Bensheim (DE)

2.4 Japanese Automakers in the EU: Production and R&D Facilities

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JAMA-CLEPA Business Summit I Venice, Italy I 27 & 28 October 2016

Source: JAMA

2.5 Japanese Automakers in the EU:Trends in Local Production / Imports from Japan

EU production by Japanese automakers has risen steadily. In 2015, EU production by Japanese automakers totalled 1.40 million units.

In units (Yen/euro)

9

0

20

40

60

80

100

120

140

160

180

0

200.000

400.000

600.000

800.000

1.000.000

1.200.000

1.400.000

1.600.000

1.800.000

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015

Japan→EU exports

Japanese automakers' EU production

Yen/euro exchange rate trends (right scale)

JAMA-CLEPA Business Summit I Venice, Italy I 27 & 28 October 2016

Source: JAMA

2.6 Japanese Automakers’ EU-Made Vehicle Exports

10

353

94

162

0 100 200 300 400

2015

2010

2005

Year

× 1,000 vehicle units

JAMA-CLEPA Business Summit I Venice, Italy I 27 & 28 October 2016

Source: JAMA

2.7 Japanese Automakers’ Purchases of EU-Made Parts*

* Comprising parts purchased for use in production operations in the EU and in Japan.

11

14,14

10,96

11,24

0 5 10 15

2015

2010

2005

× 1 Billion euros

Year

JAMA-CLEPA Business Summit I Venice, Italy I 27 & 28 October 2016

2.8 Japanese Automakers’ Approach to Parts Procurement

Conduct an open procurement process An “open door” transaction policy is always pursued.

Evaluate based on Quality, Cost, Delivery, Development factors Parts must be competitive from a QCDD perspective.

Prioritize safety, the environment, compliance Performance and regulatory compliance are critical

criteria.

Maximize globalization Parts procurement across national/regional lines is

increasing.

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European automotive suppliers meetJapanese vehicle manufacturers

Thank you for your attention!ご清聴ありがとうございました。

Grazie per l’attenzione!