Isuzu 2006 Annual Report Download

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6
2006

Table of contents

  • Page 1
    6 2006

  • Page 2
    ...be a global market leader in transportation, commercial vehicles, and diesel engines, supporting our customers and respecting the environment around the world. Not only does Isuzu manufacture the best-selling light duty trucks in Japan, but in 004 it led the world in medium-duty truck production as...

  • Page 3
    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 ...

  • Page 4
    .... This is ing heavy-duty trucks that meet the Support System Quality one of the themes of the Mid-term needs of Asian markets, as well as Business Plan, in which the company integrated light and medium-duty is laying the groundwork and investtrucks as strategic global products. ing aggressively for...

  • Page 5
    ... Heavy-Duty Bus lower emissions, and boost power. approximately 50 Ohayaku Center Isuzu leads the world in electronic service bases in Japan offers on-site control technology, having accumulated repairs 4 hours a day, and a new expertise in this field by developing its parts delivery system was...

  • Page 6
    ... Financial Highlights Isuzu Motors Limited Annual Report 2006 Millions of yen Thousands of U.S. dollars Year ended March 1 For the Year: Net sales Net income At Year End: Total assets Shareholders' equity 2006 ¥1,581,857 58,956 2005 ¥1,49,567 60,07 2004 ¥1,40,9 54,71 2006...

  • Page 7
    ... of light-duty trucks-with sales of our N series reaching 00,000 units annually, placing them at the top of their class-and one of the top three manufacturers of medium and heavy-duty trucks. Isuzu trucks surpass today's strict emissions standards, as well as offering advanced safety features, easy...

  • Page 8
    ...6 5 8 - 0 -1 ISPOL 400 S. Africa Thailand China Indonesia 300 200 100 '04/3 '05/3 '06/3 '04/3 '05/3 '06/3 '04/3 '05/3 '06/3 '04/3 '05/3 '06/3 '04/3 '05/3 '06/3 World Ranking of Truck Production Rank Manufacturer Medium-duty 2004 Production Heavy-duty Total 1  3 4 5 6 7 8 9 10...

  • Page 9
    Isuzu Motors Limited Annual Report 2006 Japan USA/DMAX Others 400 300 200 Total Global Production 100 '04/3 '05/3 '04/3 '05/3 '06/3 '04/3 '05/3 '06/3 '04/3 '05/3 '06/3 '06/3 Engines 969,000 1,139,000 1,143,000 Vehicles 512,000 578,000 621,000 Number of Employees Male Female Total Average ...

  • Page 10
    ...to lay the groundwork for turning our corporate vision of becoming a global leader in commercial vehicles and diesel engines (CV/CE) into reality. We posted record profits, strengthened our balance sheet, and expanded overseas operations. It was also a pivotal year for Isuzu in that we completed the...

  • Page 11
    ... increase market share while making a fair profit, and exploring a more comprehensive business model, offering our customers a broad range of products and services. The future vision outlined in the Isuzu Mid-term Business Plan is to become a global leader in the commercial vehicle and diesel engine...

  • Page 12
    Interview with the President Yoshinori Ida President & Representative Director 10

  • Page 13
    ... a new life-cycle business model for domestic operations so that we can offer customers a more comprehensive, value-added service. Q3: Isuzu is planning a full model change of its light-duty and medium-duty trucks that are positioned as global products. What are the main features and competitive...

  • Page 14
    ... Developments 1 A new approach to development As a global leader of commercial vehicles, Isuzu has adopted a new approach to truck development. Our new light-duty and medium-duty trucks will have significantly lower development costs due to the use of common components, while our heavy-duty trucks...

  • Page 15
    ... for global markets to world standards. The first models developed under this new system are scheduled to go on sale in Japan in late 006. Development of basic heavy-duty truck model with add-ons to fulfill regional specifications We have also reviewed the way we develop heavy-duty trucks. Our...

  • Page 16
    In April 2005, we launched our Mid-term Business Plan with the aim of becoming a global leader in commercial vehicles and diesel engines. For Isuzu, "global leader" does not refer only to profits, but also to our commitment to the environment and society. 14 Environmental & Social Responsibilities

  • Page 17
    ... Isuzu's current product range are hybrid and compressed natural gas (CNG) powered vehicles. The ELF CNG-MPI is the latest model of Japan's best-selling CNG vehicle, with approximately 70% market share. With its multipoint injection (MPI) system with highly precise electronic controls, the new ELF...

  • Page 18
    ... governance and compliance remain a major management priority at Isuzu. Companies are under growing pressure to be accountable for management decisions and actions, providing effective checks and balances, and maintaining the confidence of investors and the public by means of timely and appropriate...

  • Page 19
    ... to the operating level. In addition we have implemented a Vehicle Line Executive (VLE) system. VLEs are responsible for each of our product areas-commercial vehicles, light commercial vehicles, and powertrains-and report directly to the Management Committee. In April 005, Isuzu established...

  • Page 20
    Isuzu Motors Limited Annual Report 2006 Board of Directors 10 8 6 4 2 1 3 5 7 9 11 DIRECTORS President and Representative Director Executive Vice Presidents 1 Yoshinori Ida 2 Susumu Hosoi 3 Hiroshi Suzuki 4 Shigeki Toma Directors 5 Hirokichi Nadachi 6 Ryozo Tsukioka 7 Yoshio Kinouchi 8 ...

  • Page 21
    Financial Section ISUZU MOTOR LIMITED ANNUAL REPORT 2006 Consolidated Five-Year Summary MD&A Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Shareholders' Equity Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of ...

  • Page 22
    Financial Section Consolidated Five-Year Summary Isuzu Motors Limited Annual Report 2006 Millions of yen Thousands of U.S. dollars 2006 For the Year: Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Income (loss) before extraordinary items Income...

  • Page 23
    ... manufacturing operations and sustained brisk pickup truck sales in Thailand. (The figures shown for each of our key business areas above reflect the simple addition of the profits and losses of the parent company and consolidated subsidiaries, grouped according to the characteristics of each unit...

  • Page 24
    ... securities are acquiring additional shares in Qingling Motors Co., Ltd., a partner in light and medium-duty commercial vehicle production and sales in the Chinese market, substantial increase in the market value of securities holdings amid Japanese stock price appreciation, and equity-method profit...

  • Page 25
    ... 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 advice to companies...

  • Page 26
    ..., 005 and 004) Isuzu Motors Limited Annual Report 2006 Millions of yen Thousands of U.S. dollars 2006 ¥ 108,642 252,441 ...companies Others Long-term loans Deferred taxes (Note 6) Other investments and advances Less : allowance for doubtful accounts Total Investments and Advances Property, Plant...

  • Page 27
    Isuzu Motors Limited Annual Report 2006 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 28
    Financial Section Consolidated Statements of Income Net Sales Cost of Sales Gross Profit Selling, General and Administrative Expenses (Note 5) Operating Income Other Income (Expenses): Interest and dividend income Interest expense Equity in earnings of unconsolidated subsidiaries and affiliates ...

  • Page 29
    Isuzu Motors Limited Annual Report 2006 Consolidated Statements of Shareholders' Equity Common Stock and Preferred Stock: Balance at beginning of the year Add: The exercise of stock acquisition right Deduct: Capital deduct (retirement of class II preferred stock) Balance at end of the year (For ...

  • Page 30
    ...) in commercial paper Proceeds from long-term debt Payment on long-term debt Increase (decrease) in bonds Increase (decrease) in bonds with warrant attached Payment on retirement of prefered stock Payment on dividend Others Net Cash Used in Financing Activities Effect of Exchange Rate Changes on...

  • Page 31
    ... service. The Company has adopted the Financial Accounting Standard for retirement benefits in Japan. In accordance with this standard, accrued employees' retirement benefits are provided mainly at an amount calculated based on the retirement benefit obligation and the fair value of the pension plan...

  • Page 32
    ...in the consolidated balance sheet net of accumulated impairment. j) Net Income per Share Net income per share of common stock is calculated based upon the weighted average number of shares of common stock outstanding during each year. Under the revised financial statements regulations in Japan, the...

  • Page 33
    Isuzu Motors Limited Annual Report 2006 3. Securities Fair Value of Securities of other securities as of March 1, 006 is as follows: Millions of yen Thousands of U.S. dollars Acquisition costs Unrealized gain: Stocks Bonds: Corporate bonds Investment trusts Total Unrealized loss: Stocks: Total ...

  • Page 34
    ...of yen Thousands of U.S. dollars Isuzu Motors Limited Annual Report 2006 6. Income Taxes Accrued income taxes in the balance sheets include corporation tax, inhabitant taxes and enterprise tax. Income taxes in the statements of operations include corporation tax and inhabitant taxes and enterprise...

  • Page 35
    Isuzu Motors Limited Annual Report 2006 7. Shareholders' Equity The legal reserves of the consolidated subsidiaries are included in retained earnings in the accompanying consolidated financial statements. The Company issued new common stock due to the exercise of stock acquisition right. As the ...

  • Page 36
    Financial Section (iii) The Number of Common Stocks to be issued in exchange for the Acquisition of the Class-I Preferred Stocks Isuzu Motors Limited Annual Report 2006 The number of common stocks of the Company to be issued in exchange for the acquisition of the Class-I preferred stocks shall be ...

  • Page 37
    ... of common stocks of the Company at the Tokyo Stock Exchange during 0 business days (excluding days without closing price) starting from the 45th business day preceding the base date of Mandatory acquisition. When the average price is lower than the floor acquisition price, the Class-III preferred...

  • Page 38
    ...of the Company at the Tokyo Stock Exchange during 0 business days (excluding days without closing price) starting from the 45th business day preceding the base date of Mandatory acquisition. When the average price is lower than the floor acquisition price, the Class-IV preferred stocks shall become...

  • Page 39
    Isuzu Motors Limited Annual Report 2006 11. Lease Transactions (1) Finance lease transactions, except for those which meet the conditions that the ownership of the leased assets is substantially transferred to the lessee, is as follows. a) As a lessee (i) Amounts equivalent to acquisition costs, ...

  • Page 40
    .... Following this agreement, General Motors Ltd., a 100% subsidiary of GM, sold 40,000,000 shares, out of 90,090,000 shares of the Company common stock that it owned, to Mitsubishi Corporation. It also sold 40,000,000 shares to Itochu Corp. and 10,090,000 shares to Mizuho Corporate Bank, Ltd. As...

  • Page 41
    Isuzu Motors Limited Annual Report 2006 14. Segment Information (1) The business segment information for the Company and its consolidated subsidiaries for the years ended March 1, 006 and 005 As net sales, operaring income and total assets from the automotive business of the Company and its ...

  • Page 42
    ... Limited Annual Report 2006 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 1, 006, 005 and 004, and the related consolidated statements of operations, shareholders...

  • Page 43
    ...Co., Ltd. Isuzu LINEX Corporation J-Bus Limited Jidosha Buhin Kogyo Co., Ltd. TDF Corporation Nippon Fruehauf Co., Ltd. Isuzu Motors Limited Annual Report 2006 1010, Thailand Tel: 66--94-541 Isuzu Engine Manufacturing Co., (Thailand) Ltd. (IEMT) Isuzu Truck (UK) Ltd. Thundridge Business Park...

  • Page 44
    ... tions, highlighted by our opening of overseas operations in Thailand (1974), North America (1975), and China (1985), and starting diesel engine manufacture in Poland (1999) and the U.S. (000). As an established world-class manufacturer of commercial vehicles, Isuzu today is devoting its energies...

  • Page 45
    ... 197 Isuzu Motors Limited Annual Report 2006 Head Office 6-1, Minami-oi 6-chome, Shinagawa-ku, Tokyo 140-87, Japan Tel: +81--5471-1141 Fax: +81--5471-104 Head Office Plants and Other Facilities Tochigi Plant Fujisawa Plant Isuzu Engine Manufacturing Hokkaido Corporation Wa.com Hokkaido Co...

  • Page 46
    ISUZU MOTORS LIMITED 6-1, Minami-oi 6-chome, Shinagawa-ku, Tokyo 140-87, Japan Tel: +81--5471-1141 Fax: +81--5471-104 ht tp: // w w w.isuzu.co.jp / world / Printed in Japan on recycled paper