Isuzu 2005 Annual Report Download
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Isuzu is one of the world’s leading manufacturers
of commercial vehicles and diesel engines. Always
an innovator, Isuzu introduced Japan’s first diesel
engine in 1936, and today we are leading the way
in developing environmentally friendly diesel tech-
nology. We are the market leader in at least one
product category in 23 different countries and our
products are found in over 130 countries around
the world. For example, in Japan we led the mar-
ket for 2–3 ton trucks with over 38.4% market
share in fiscal 2005, and in the U.S. Isuzu has
been the leader in imported class 3 and class 7
low cab forward (LCF) trucks for 19 straight years.
Trucks
Isuzu trucks are trusted around the world for their reliability on
the job and durability even under the most demanding condi-
tions. We are the world’s largest manufacturer of medium-duty
trucks and our lineup of trucks—ranging from the light duty
N series (ELF in Japan) to the heavy duty C&E series (GIGA in
Japan)—is designed to meet the needs of any business. Isuzu
trucks exceed today’s stricter environmental standards, offering
cleaner emissions as well as advanced safety features. Isuzu in-
novations include Japan’s first “4-bag” air suspension and the
Smoother series of transmissions for easy handling and better
fuel economy. Isuzu also offers services such as seminars on
economical operating techniques and consulting on meeting
emissions standards.
Truck Lineup
Heavy-duty trucks Japan • GIGA series
Overseas • C&E series
Medium-duty trucks Japan • FORWARD series
Overseas • F series
Light-duty trucks Japan • ELF series
Overseas • N series
Buses
Our ERGA and ERGA Mio buses are powered by fuel-
efficient, low-emission Isuzu diesel engines, with CNG
power plants available on some models. The highly
rigid body structure of these buses complies with the
Economic Commission for Europe’s (ECE) demanding
R-66 standards for vehicle rollover performance. Like
our trucks, our buses comply with the latest, stringent
emissions regulations.
Bus Lineup
Large-capacity buses
• ERGA series (route buses)
• GALA series (sightseeing buses)
Medium-capacity buses
• ERGA Mio series (route buses)
• GALA Mio series (sightseeing buses)
Microbuses
• JOURNEY series
• COMO series
Pickup Trucks, AUVs and SUVs
Our fifth-generation one-ton pickup truck, the Isuzu D-
MAX developed in collaboration with General Motors,
is the uncontested market leader in Thailand, where
we command 37.8% of the market for one-ton pickup
trucks. We sold 139,753 Isuzu D-MAXs in Thailand in
FY 2005, making it the best-selling vehicle ever in that
country. We also export these trucks to Australia, South
Africa, the Middle East and Europe. Isuzu wound up
its manufacture of SUVs in the U.S. in July 2004, but in
November launched sales of the MU-7 in Thailand.
Pickup Truck, AUV and SUV Lineup
Pickup truck
• Isuzu D-MAX
AUV (Asian Utility Vehicle)
• PANTHER
SUVs
• ASCENDER
• MU-7
Powertrains
Isuzu powertrains have come to symbolize unsurpassed qual-
ity. Diesel engines emit less CO
2
than gasoline-powered en-
gines and offer excellent fuel economy. Diesel engines account
for a growing share of the automotive market in Europe, and
through our partnership with General Motors, Isuzu engines are
used in GM pickup and other trucks in the U.S. and Opel, Saab
and Renault automobiles in Europe.
Powertrain Lineup
Automotive
• 4EE2-TC 1.7-Liter Diesel Engine
• 6DE1 3.0-Liter Diesel Engine
• 8GF1 6.6-Liter Diesel Engine (Duramax 6600)
• 6HK1-TC 7.8-Liter Diesel Engine (Duramax 7800)
Industrial
• L-Series 3&4 Cyl.s 1.1–2.2 Liter 12–40kW
• B-Series 4&6 Cyl.s 4.3–6.5 Liter 45–140kW
• H-Series 6 Cyl.s 7.8 Liter 100–200kW
• J-Series 4 Cyl.s 2.7–3.1 Liter 20–65kW
• S-Series 3&4 Cyl.s 9.8 Liter 130–240kW
• W-Series 6 Cyl.s 15.7 Liter 180–350kW
Marine
• In-line 6 Cylinder Turbo Intercooler series
• In-line 4 Cylinder Turbo Intercooler series
• Natural Aspiration series
01 02
Isuzu Around the World
100
200
300
400
UK
’03 ’04 ’05
100
200
300
400
Poland
’03 ’04 ’05
S.Africa
’03 ’04 ’05
Thailand
’03 ’04 ’05
Japan
’03 ’04 ’05
China
’03 ’04 ’05
Indonesia
’03 ’04 ’05
USA
’03 ’04 ’05
Others
’03 ’04 ’05
Total Global Production
831,000
969,000
1,117,000
’03
’04
’05
473,000
510,000
579,000
Engines Vehicles
Our Corporate Vision
Isuzu will always mean the best
A leader in transportation, commercial vehicles and
diesel engines, supporting our customers and respecting
the environment
Our Corporate Mission
Trust, Action, Excellence
A global team delivering inspired products and
services committed to exceeding expectations
Our Corporate Statement
Table of contents
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Page 1
..., low-emission Isuzu diesel engines, with CNG power plants available on some models. The highly rigid body structure of these buses complies with the Economic Commission for Europe's (ECE) demanding R-66 standards for vehicle rollover performance. Like our trucks, our buses comply with the latest... -
Page 2
Isuzu is moving forward on research and development in the latest technologies for trucks, buses, pickup trucks and diesel engines with a focus on cleaner, more environmentally friendly diesel and hybrid technologies so that we can offer products and services that satisfy the needs of our customers ... -
Page 3
...tons (14,000 lbs) in Japan in 2003, making the company the world's number-one manufacturer of medium- and heavy-duty trucks on a single-country comparison. Isuzu's domestic production volume returned to the top position for the first time in six years. Moreover, in 2004 Isuzu's ELF gained top market... -
Page 4
Isuzu Motors Limited Annual Report 2005 « CONSOLIDATED FINANCIAL HIGHLIGHTS Millions of yen Thousands of U.S. dollars Year ended March 31 For the Year: Net sales Net income (loss) At Year End: Total assets Shareholders' equity 2005 ¥1,493,567 60,037 2004 ¥1,430,339 54,713 2003 ¥1,349,449 (... -
Page 5
... year of our New Three-Year Business Plan when we expected programs to be well on track and see evidence that our earnings structure had improved. We overcame challenging business conditions and posted record profits at all levels, with overseas sales and subsidiaries compensating for lower parent... -
Page 6
... profit base, and develop the DE business as a new mainstay in terms of revenue and profit. As we start the first year of a new three-year business plan, we look forward to your continued support as we embark on our mission to become a global leader in the commercial vehicle business. June 2005... -
Page 7
... a new Mid-term Business Plan covering three financial years from April 2005 to March 2008. Setting out to operate under a new corporate vision- "the world-leading global CV/DE company," Isuzu looks to expand its commercial vehicle and diesel engine business on a global basis. Earnings targets for... -
Page 8
...achieve annual overseas commercial vehicle sales of 300,000 units by March 2008, and maximizing profit by integration of the light-duty commercial vehicle (LCV) platform and the introduction of derivative models. In addition, Isuzu plans to extend its role as a key player in the General Motors Group... -
Page 9
... rules Isuzu is developing trucks that fulfill both environmental and economical requirements to the highest standards. One of the first manufacturers to introduce diesel engines that comply with the latest emissions regulations, we are striving to make a contribution towards preventing global... -
Page 10
... covered by the Mimamorikun Online Service, a real-time vehicle diagnostics system initially provided for the GIGA series of heavy-duty trucks. As a result of the upgrade, the service is now available for the ELF Series of light duty and FORWARD Series of medium duty trucks. Customers are mainly... -
Page 11
Environmental & Social Responsibilities Environmental efforts Isuzu strives to be a leader in environmental responsibility. We take a two-pronged approach, aiming to develop cleaner vehicles and minimize the environmental burden of our manufacturing facilities. 12 -
Page 12
... energy-efficient facilities. Developing cleaner vehicles In April 2005, Isuzu announced the addition of a new model that runs on compressed natural gas (CNG) to its lineup of ELF low-pollution, light-duty trucks. The ELF CNGMPI is the first CNG vehicle that meets the new long-term exhaust emissions... -
Page 13
... operating level. In addition, we have implemented a Vehicle Line Executive (VLE) scheme. The Vehicle Line Executives, who are responsible for each of our product areas-commercial vehicles, light commercial vehicles and powertrains-report directly to the Management Committee. The board of directors... -
Page 14
FINANCIAL SECTION ISUZU MOTOR LIMITED ANNUAL REPORT 2005 Five-Year Summary MD&A Consolidated Balance Sheets Consolidated Statements of Operations Consolidated Statements of Shareholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of Independent ... -
Page 15
FINANCIAL SECTION Consolidated Five-Year Summary Isuzu Motors Limited Annual Report 2005 « Millions of yen Thousands of U.S. dollars 2005 For the Year: Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income (loss) Income (loss) before special items ... -
Page 16
... where pickup trucks account for around 60% of the total, Isuzu pickup trucks held 38% market share, sustaining steady sales growth despite intensifying competition. North American sales fell 15.0% to ¥213,901 million as we withdrew from local SUV production and shifted emphasis to profit. Sales in... -
Page 17
... cash management structure, while 18 Risks In 2002, in response to the protracted slump in the Japanese commercial vehicle market and lackluster SUV sales in the U.S., the Isuzu group drew up its New Three-Year Business Plan covering the three-year period to March 2005 to restore corporate value... -
Page 18
..., sell, and distribute its products as well as to build and maintain good relationships with its business partners. For marketable securities, a downturn in share prices could have a negative impact on the earnings and financial position of the Isuzu group. Isuzu provides management guidance and... -
Page 19
... (Note 4) Less : allowance for doubtful receivables Inventories Deferred taxes (Note 6) Other current assets Total Current Assets (As of March 31, 2005, 2004 and 2003) Isuzu Motors Limited Annual Report 2005 « Millions of yen Thousands of U.S. dollars 2005 ¥ 139,357 248,744 (5,055) 124,526... -
Page 20
Isuzu Motors Limited Annual Report 2005 « Millions of yen Thousands of U.S. dollars Liabilities and Shareholders' Equity Current Liabilities: Bank loans Current portion of bonds Commercial paper Notes and accounts payable Accrued expenses Accrued income taxes (Note 6) Deposits received Other ... -
Page 21
...on return of substituted portions of employee pension fund (Note 2,5) Loss on revaluation of investments Loss on business model reform Loss on restructuring of domestic subsidiaries & affiliates Loss on investment for affiliated company restructuring Severance benefit of early retirement plan Others... -
Page 22
Isuzu Motors Limited Annual Report 2005 « Consolidated Statements of Shareholders' Equity Common Stock and Preferred Stock: Balance at beginning of the year Add: Issuance of common stock Issuance of preferred stock The exercise of stock acquisition right Deduct: Capital deduct (retirement of ... -
Page 23
... from the Addition or Exclusion of Consolidated Companies Cash and Cash Equivalents at End of the Year (Notes 2) See accompanying notes to consolidated financial statements. Isuzu Motors Limited Annual Report 2005 « (For the years ended March 31, 2005, 2004 and 2003) Millions of yen Thousands... -
Page 24
... payments based on compensation at the time of severance and years of service. The Company has adopted the Financial Accounting Standard for retirement benefits in Japan. In accordance with this standard, accrued employees' retirement benefits have been provided mainly at an amount calculated based... -
Page 25
... Motors Limited Annual Report 2005 « k) Appropriation of Retained Earning Appropriations of retained earnings are recorded in the financial year in which the appropriation is approved by the Board of Directors or shareholders. j) Net Income per Share Net income per share of common stock is based... -
Page 26
..., The Company amended the Employee Pension Fund to establish the cash balance pension plan. (2) Retirement benefit cost for the year ended March 31, 2005. Millions of yen Thousands of U.S. dollars Service cost Interest cost on projected benefit obligation Expected return on plan assets Amortization... -
Page 27
... registered pledges. The Company can always purchase preferred stocks and cancel the stocks at the purchased price by a profit distributed to shareholders. The preferred shareholders shall not have a voting right at the General Meeting of Shareholders. The Company shall not make the consolidation or... -
Page 28
... preferred stocks by the average price (calculated to the first decimal point and then rounded up) of the daily closing price (including quot- ed price) in regular transactions of common stocks of the Company at the Tokyo Stock Exchange the Tokyo Stock Exchange. during 30 business days (excluding... -
Page 29
... the reverse split of stocks stipulated in the Commercial Law. Isuzu Motors Limited Annual Report 2005 « The average price of daily closing prices (including quoted price) in regular transactions of common stocks of the Company at the Tokyo Stock Exchange. during 30 business days (excluding days... -
Page 30
... of the ClassIII preferred stocks by the average price (calculated to the first decimal point and then rounded up) of the daily closing price (including quoted price) in regular transactions of common stocks of the Company at the Tokyo Stock Exchange. during 30 business days (excluding days without... -
Page 31
... of the ClassIV preferred stocks by the average price (calculated to the first decimal point and then rounded up) of the daily closing price (including quoted price) in regular transactions of common stocks of the Company at the Tokyo Stock Exchange. during 30 business days (excluding days without... -
Page 32
... earnings of the Company were approved at the shareholders' meeting held on June 29, 2005: Millons Thousands of of yen U.S. dollars Year-end cash dividends Preferred Stock (Class I) (Â¥6.912=U.S.$0.064 per share) Preferred Stock (Class III) (Â¥12.912=U.S.$0.120 per share) Preferred Stock (Class IV... -
Page 33
FINANCIAL SECTION 12. Segment Information Isuzu Motors Limited Annual Report 2005 « (1) The business segment information for the Company and its consolidated subsidiaries for the years ended March 31, 2005 and 2004 As net sales, operaring income and total assets from the automotive business of ... -
Page 34
Isuzu Motors Limited Annual Report 2005 « (3) Overseas sales, which include export sales of the Company and its domestic consolidated subsidiaries and sales (other than export to Japan) of the foreign consolidated subsidiaries, were as follows: North America Year ended March 31, 2005 Overseas ... -
Page 35
... Limited Annual Report 2005 « To The Board of Directors Isuzu Motors Limited We have audited the accompanying consolidated balance sheets of Isuzu Motors Limited and consolidated subsidiaries as of March 31, 2005, 2004 and 2003, and the related consolidated statements of operations, shareholders... -
Page 36
... Street, Port Melbourne, Victoria 3207, Australia Tel: 61-3-9644-6666 OVERSEAS OFFICES China 114 Technology Avenue, Phase II, Laguna Technopark, Binan, Laguna 4024, Philippines Tel: 63-2-842-0241 Isuzu Autoparts Manufacturing Corporation (IAMC) 114 North Main Avenue, Phase III, Special Economic... -
Page 37
BOARD OF DIRECTORS Isuzu Motors Limited Annual Report 2005 « 10 8 6 7 9 11 2 4 1 3 5 DIRECTORS President and Representative Director Executive Vice President and Representative Director Executive Vice Presidents Directors 2 Basil N. Drossos 3 Hiroshi Suzuki 4 Shigeki Toma 5 Susumu Hosoi ... -
Page 38
...April 9, 1937 Isuzu Motors Limited Annual Report 2005 « Head Office 26-1, Minami-oi 6-chome, Shinagawa-ku, Tokyo 140-8722, Japan Tel: +81-3-5471-1141 Fax: +81-3-5471-1043 Head Office Plants and Other Facilities Tochigi Plant Fujisawa Plant Isuzu Engine Manufacturing Hokkaido Corporation Wa.com...