30 Corporate Governance Corporate Data Performance Innovation & Power of brand Year 2 Power 88 Maintaining Trust Through Transparency NISSAN Annual Report 2012 Risk Management Measures and Actions 1. Risks Related to Financial Market Automotive 1) Liquidity The automotive business must have adequate liquidity to provide for the working capital needs of day-to- day normal operations, capital investment needs for future expansion and repayment of maturing debt.  Liquidity can be secured through internal cash and cash equivalents or external borrowings. As of the end  of fiscal year 2011 (March 31, 2012), Nissan’s automotive business had 781 billion yen of cash and cash  equivalents (compared with 1,133 billion yen as of March 31, 2011). Cash and cash equivalents balance  was exceptionally high as of the end of fiscal year 2010, as Nissan raised cash following the Great East  Japan Earthquake as a countermeasure against an uncertain environment. In addition to cash, Nissan had  approximately 469 billion yen of committed lines available for drawing as of March 31, 2012. As for external borrowings, Nissan raises financing through several sources, including bonds  issuance in capital markets, long and short-term loans from banks, commercial paper issuance and  committed credit lines from banks. Nissan has a liquidity risk management policy which is intended to  ensure adequate liquidity for the business while at the same time ensuring we mitigate liquidity risks,  such as unmanageable bunched maturities of debt. Target liquidity is defined objectively considering several factors, including debt maturity, upcoming  mandatory payments (such as dividends, investments, taxes) and peak operating cash needs. We also  benchmark our liquidity targets with other major Japanese corporations and global auto companies to  ensure we are reasonable in our assumptions.  Nissan operates captive sales finance companies in Japan, the United States, Canada, Mexico, China,  Australia and Thailand. In these countries, banks and other financial institutions are also involved in  providing financing solutions to Nissan’s customers and dealers. Additionally, in Europe and other  regions, RCI Banque and several other banks / financial institutions are providing financing to  Nissan’s customers and dealers. We monitor the liquidity of sales finance companies on an ongoing basis to ensure we have  adequate liquidity to meet maturing debt and continue operations. As a policy, we target to match the  maturity of liabilities with the maturity of assets wherever possible. In some of the countries where we  operate, long-term capital markets are not developed, and thus it is not always possible to be perfectly  match-funded. Match funding policy allows us to meet maturing debt obligations even in an  environment in which we cannot raise additional debt due to the state of capital markets. In addition to match funding, we manage liquidity risk at sales financing through several measures,  including keeping adequate liquidity in the form of cash and unutilized committed lines,  unencumbered assets (mainly vehicle loans and leases), liquidity support from auto operations to the  extent we have excess cash in auto operations, diversified funding sources and geographical  diversification of capital markets’ access. As of March 31, 2012, sales finance companies’ liquidity  (cash and unutilized committed lines) was  approximately 860 billion yen. Additionally, we  have a healthy mix of secured (24.7%) and  unsecured and other (75.3%) funding sources  which ensure a stronger balance sheet and  incremental liquidity through utilization of  unencumbered assets. The pie chart below describes our diversified  funding sources in the sales finance business.  During fiscal year 2011, we were able to raise  new financings through bank loans, asset- backed securities, asset-backed commercial  paper, commercial paper and bonds reflecting  our diversified access to financing instruments. SALES FINANCE BUSINESS  FUNDING SOURCES Sales finance Group Finance  (Inter-Company) 25.5% Commercial  Paper 0.9% ABS On B/S 20.9% L/T Loan 26.6% Bonds 8% S/T Loan 3.8% Equity 10.7% ABS Off B/S 3.8% (As of March, 2012)