Isuzu 2013 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ... Vision At a Glance Message from the President Special Feature: Mid-term Business Plan Corporate Social Responsibility Corporate Governance Board of Directors Financial Section Consolidated Five-Year Summary Isuzu will always mean the best A leader in transportation, commercial vehicles and diesel...

  • Page 3
    .... Overseas, products are sold through Isuzu Group companies' sales networks, General Motors Group companies' sales networks, trading companies, and other partners. Principal products l Buses l Light- to heavy-duty trucks l Pickup trucks l Industrial diesel engines 2 Features l In Japan, Isuzu...

  • Page 4
    ....98 Note: U.S. dollar figures have been calculated at the rate of ¥94.05=U.S.$1, the approximate rate of exchange prevailing on the Foreign Exchange Market on March 29, 2013. Net Sales (Millions of yen) Net Income (Loss) (Millions of yen) Total Assets (Millions of yen) 02 Isuzu Motors Limited

  • Page 5
    ... and engine parts needed in Japan, and their subsequent delivery to the Company. Opening ceremony for the new pickup truck plant, November 1, 2012 Product-related August 9, 2012 Isuzu Launches ERGA Hybrid Heavy-duty Bus On August 9, 2012, Isuzu marked the global launch of its ERGA Hybrid heavy...

  • Page 6
    ...by the government. The start of operations at Isuzu's new plant in October 2012 helped the company keep pace with a dramatic increase in sales volume. l Demand also increased in Indonesia. Going forward, Isuzu will continue to seek to expand its market share in the country. 04 Isuzu Motors Limited

  • Page 7
    ... selling its new D-MAX pickup truck in Europe. Central and South America l Isuzu has achieved No. 1 market share in the light- and mediumduty truck segments in Colombia. Middle East/Africa l Isuzu's N series of light-duty trucks continued to maintain dominant market share in Saudi Arabia. China...

  • Page 8
    ... in the Chinese market, leading to growth in overall CV (Commercial Vehicle) exports and record sales volume. Sales of LCVs (pickups and their derivatives) were robust, particularly in Thailand, and the increased production capacity of our new plant in Thailand, which began operations during the...

  • Page 9
    ...of the company's recent performance. Final year of the Mid-term Business Plan (April 2011 to March 2014) The current Mid-term Business Plan sets forth Isuzu's basic direction as "aiming at excellence in respecting the environment to meet the demands of society, maximizing vehicle operating rates and...

  • Page 10
    ... assessment. Corporate Philosophy and Vision The plan calls on Isuzu to "become a company aiming at excellence in respecting the environment to meet the demands of society, and maximizing vehicle operating rates and minimizing life-cycle costs to meet customers' needs." 08 Isuzu Motors Limited

  • Page 11
    ... Report Thailand: Strengthen and Expand LCV Business The New Isuzu Gateway Factory, which we built to accommodate additional growth in the compact pickup truck market, began operations in October 2012. With the addition of the new facility, Isuzu's pickup truck production capacity has reached...

  • Page 12
    ...Japan: Stabilize Domestic Business We are working to enhance our cost competitiveness by implementing a variety of measures designed to streamline manufacturing and sales. In addition, we established a new company (Isuzu Leasing Service Limited) to be responsible for the Group's sales and financial...

  • Page 13
    ...in Emerging and Advanced Markets In the Middle East, South America, Africa, Europe/CIS, and Oceania, we are focusing on securing a stable position in existing markets. Ceremony for Opening a New Plant in Saudi Arabia (December 2012) For the Last Year of the Mid-term Business Plan During the fiscal...

  • Page 14
    ... to achieve sustainable development together with society, it is important for Isuzu to fulfill Isuzu's corporate social responsibilities and implement our Corporate Vision while establishing credible relationship with the stakeholders. Isuzu has defined Isuzu Motors CSR activities as activities by...

  • Page 15
    ..., review important decision-making documents and other materials, investigate operational and financial conditions at the head office and major worksites, request reports from subsidiaries as needed, and audit Company operations. Isuzu s Internal Audit Systems A n n u a l R e p o r t 2013 13

  • Page 16
    ... Muratou Etsuo Yamamoto Susumu Kawahata Shigeo Tsuzuki Hiroshi Ikeda Hiroyasu Miura Standing Audit & Supervisory Board Member Shunichi Satomi Hiroshi Oyama Tetsuhiko Shindo Audit & Supervisory Board Member Yasuharu Nagashima Tadashi Takahashi (As of June 27, 2013) 14 Isuzu Motors Limited

  • Page 17
    Financial Section ISUZU MOTORS LIMITED Annual Report 2013 Consolidated Five-Year Summary MD&A Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Comprehensive Income Consolidated Statements of Change in Net Assets Consolidated Statements of ...

  • Page 18
    ...781,001 275,682 ¥ 811,200 245,296 ¥ 761,263 229,287 $ 8,950,729 4,259,325 Note: U.S. dollar amounts are translated from yen, for convenience only, at the rate of ¥94.05 = US$1; the approximate exchange rate prevailing on the Foreign Exchange Market on March 29, 2013. 16 Isuzu Motors Limited

  • Page 19
    ... the minority shareholders of Isuzu's locally incorporated subsidiaries in the ASEAN region, China, and North America, and its Japanese parts manufacturers. Minority interests in fiscal 2013 increased to ¥13.3 billion, compared to ¥6.8 billion in fiscal 2012. 8. Net income The Group posted a net...

  • Page 20
    ... decline in demand in the Group's major markets- Japan, North America, and other Asian countries-could have a negative impact on the Group's performance and financial position. Price competition also entails the risk of price fluctuation for Isuzu products. Cash flow from investing activities...

  • Page 21
    ... award (the Group is covered by product liability insurance, but in the case of costs exceeding insurance coverage), there could be a negative impact on the Group's performance and financial position. 12. Limits on intellectual property protection The Isuzu Group has accumulated technology and...

  • Page 22
    ...Equipment (Note 4) Land (Note 8) Buildings and structures Machinery and equipment Lease assets Construction in progress Less : accumulated depreciation Net Property, Plant and Equipment Other Assets Total Assets See accompanying notes to consolidated financial statements. 72,042 50,380 1,378 19,266...

  • Page 23
    ... Assets Shareholders' Equity (Note 7) Common stock Common stock : Authorized 3,369,000,000 shares in 2013 and 2012 Issued 1,696,845,339 shares in 2013 and 2012 Capital surplus Retained earnings Less: treasury stock, at cost 2,584,146 common shares in 2013 Total Shareholders' Equity Accumulated Other...

  • Page 24
    ...before Income Taxes and Minority Interests Income Taxes (Note 6): Current Deferred Income Before Minority Interests Minority Interests in Income of Consolidated Subsidiaries Net Income Per Share of Common Stock Net Income -Basic See accompanying notes to consolidated financial statements. ¥ 56.98...

  • Page 25
    ... Net changes on items other than shareholders' equity Balance at March 31, 2012 Cash dividends Reversal of revaluation reserve for land Net income Acquisition of treasury stock Net changes on items other than shareholders' equity Balance at March 31, 2013 ¥ 40,644 ¥ 50,427 ¥ 196,816 (8,474...

  • Page 26
    ... of bonds Proceeds from minority shareholders Repayment of lease obligations Payment on acquisition of treasury stock Payment on dividends made by parent company Payment on dividends to minority shareholders Net Cash Used in Financing Activities Effect of Exchange Rate Changes on Cash and Cash...

  • Page 27
    ... retirement benefits in Japan. In accordance with this standard, accrued employees' retirement benefits are provided based on projected benefit obligation and the fair value of the pension plan assets at the balance sheet date. Prior service costs are being amortized as incurred by the straight-line...

  • Page 28
    ... 2012 based on the revised corporate tax law. The effects of these changes on the consolidated financial statements for the fiscal year ended March 31, 2013 were not material. j) Net Income per Share Net income per share of common stock is calculated based upon the weighted average number of shares...

  • Page 29
    ...classified as other securities at March 31, 2013 amounted to ¥1,874 million ($19,927 thousands). 4. Long-Term Debt Long-term debt at March 31, 2013 and 2012 are as follows: Millions of yen Thousands of U.S. dollars 5. Retirement Benefit Plans The Company has defined benefit plans, i.e., corporate...

  • Page 30
    ... statutory tax rate and the effective tax rate reflected in the accompanying consolidated statements of income for the years ended March 31, 2013 and 2012 are as follows: 2013 2012 1 year 1 year 6. Income Taxes Accrued income taxes in the balance sheets include corporation tax, inhabitant tax and...

  • Page 31
    ...of odd stocks Balance at end of the year 2013 2012 (1) Finance lease transactions, except for those which substantially transfer the ownership to the lessee, are as follows. a) Lessee i) Amounts equivalent to acquisition costs, accumulated depreciation and net book value of the finance lease assets...

  • Page 32
    ...U.S. dollars Hedge accounting method Type of derivative transactions Foreign exchange forward contracts Main hedged items Contract amount Over one year Fair value Contract amount Over one year Fair value Principal accounting method Buy Japanese yen Sell U.S. dollar Australian dollar Other...

  • Page 33
    ... 31, 2013 is as follows: Thousands of U.S. dollars As for business assets that had been decided to be disposed, impairment loss, if any, is recognized at the point of time when the decision is made on the disposal. Breakdown of the impairment loss by asset type is as follows: Location Usage Type...

  • Page 34
    ... change, before income taxes Income taxes on net current period change Net unrealized loss on hedging instruments ¥ ¥ 20 (197) (176) (26) (203) $ $ 220 (2,100) (1,879) (285) (2,165) Assets and liabilities relating to finance lease transactions ¥ 2013 ¥ 184,764 2012 ¥ 160,492 2013 $1,964,531...

  • Page 35
    ... business segment, primarily engaged in manufacture and sale of vehicles and its components, industrial engines. Therefore the disclosure of segment information is omitted. (2) Related information Year ended March 31, 2013 a) Information by product and service Tri Petch Isuzu Sales Co., Ltd ITOCHU...

  • Page 36
    Financial Section Report of Independent Auditors 34 Isuzu Motors Limited

  • Page 37
    .... TOL Jakarta-Cikampek km47, Kawasan Kiic Lot 6-9, Karawang, Indonesia Tel: 62-21-8904590 Isuzu North America Corporation (INAC) 1400 S. Douglass Road, Suite 100, Anaheim, CA 92806 Tel: 1-714-935-9300 Isuzu Hicom Malaysia Sdn. Bhd. Kawasan Perindustrian, Peramu Jaya, P.O.BOX 6, 26607 Pekan, Pahang...

  • Page 38
    ...to Diesel Automobile Industry Co., Ltd. Company shares are listed on the Tokyo Stock Exchange. The Company's name is changed to Isuzu Motors Limited. Isuzu signs a technical assistance agreement with Rootes, Ltd., of the U.K. for the Hillman passenger car. The Fujisawa Plant begins operations. Isuzu...

  • Page 39
    Corporate Data Isuzu Motors Limited Date of Establishment April 9, 1937 Head Office Head Office 26-1, Minami-oi 6-chome, Shinagawa-ku, Tokyo 140-8722, Japan Tel: +81-3-5471-1141 Fax: +81-3-5471-1043 Plants Tochigi Plant Fujisawa Plant Manufacturing of engines and parts Manufacturing of trucks, ...

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