Isuzu 2016 Annual Report Download

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2016
Year ended March 31, 2016

Table of contents

  • Page 1
    2016 Year ended March 31, 2016

  • Page 2
    ... products and services committed to exceeding expectations Corporate Directory Corporate History Corporate Data Forward-Looking Statements 37 38 39 This annual report contains forward-looking statements about Isuzu Motors Limited's plans, strategies, beliefs and future performance. These forward...

  • Page 3
    ...Buses l Pickup trucks l Industrial diesel engines 2 Features l In Japan, Isuzu boasts No. 1 share in the light-duty truck market and No. 2 share in the medium- and heavy-duty truck markets. (CY 2015 actual results) l Isuzu products are sold in well over 100 countries worldwide, and overseas sales...

  • Page 4
    Isuzu Motors Limited Consolidated Financial Highlights Millions of yen Thousands of U.S. dollars Year ended March 31 For the Year: Net sales Profit attributable to owners of parent At Year-End: Total assets Net assets 2016 2015 2016 ¥ 1,926,967 114,676 ¥ 1,879,442 117,060 $ 17,101,233 1,...

  • Page 5
    ...oriented society by incorporating jointly developed ITS and advanced driver assistance technologies into their future trucks and buses, and by working to promote the widespread use of those technologies. Isuzu Establishes an After-sales Service Support Company Isuzu established Isuzu Global Service...

  • Page 6
    ... Thailand surged to a record high despite continued sluggishness in the Thai market. Norway No. 1 Market Share in 2015 (Based on sales figures compiled by Isuzu) Source: Isuzu Motors Pickup Trucks (Payload 1 ton) Japan Light Duty Trucks (Payload 2-3 ton) Buses (Heavy Duty Buses) Ukraine Buses...

  • Page 7
    ...Pickup Trucks (Payload 1 ton) Colombia Light Duty Trucks Medium Duty Trucks Light Duty Buses Isuzu has enjoyed No. 1 market share for 27 straight years in the Australian CV market (GVW of 4.5 tons and over). In addition, LCV market share and shipments rose dramatically. 40 (K-units) 27 30 20 20...

  • Page 8
    ... in developed markets in Japan, North America, and Australia, while uncertainty remains in emerging markets and resource-producing countries. Abrupt fluctuations in exchange rates will have an unavoidable impact on operations. We will address our expectations concerning the business environment...

  • Page 9
    ... and diesel engines. To that end, we will continue to embrace the challenge of playing an essential role in people's lives worldwide. As we actively drive growth to achieve these goals, we at Isuzu Motors look forward to your renewed understanding and support. Mid-Term Business Plan (April 2015 to...

  • Page 10
    ... 2015, Isuzu announced and launched the first fully redesigned GIGA heavy-duty truck in 21 years. The new GIGA represents an evolution from the pursuit of single-vehicle performance to a true transport system that provides a new level of support for customer operations. It was engineered in response...

  • Page 11
    ...backup to help customers ensure their fleets operate in a stable manner, in the form of high-quality maintenance that only an authorized dealer can offer. Launch of the new GIGA CNG heavy-duty truck In the past, Isuzu has offered various light- and medium-duty trucks and buses powered by compressed...

  • Page 12
    ... ERGA heavy-duty bus in 15 years. Putting smiles on users' faces with ERGA Barrier-free universal design Isuzu improved safety around priority seats by orienting them so that they face forward, and adding new handrails. We also added inverted ramps to simplify and speed wheelchair access, and new...

  • Page 13
    ..., 2015, Isuzu announced and launched a redesigned D-MAX pickup truck in Thailand. The new D-MAX is available with either a 1.9- or 3.0-liter engine. The 1.9-liter engine in particular offers a significant improvement in fuel efficiency compared to the 2.5-liter engine used in the previous model. The...

  • Page 14
    ... corporate social responsibilities and win trust from the community and contribute to the sustainable development of our society through our CSR activities. Isuzu CSR activities The policy of activities 1 2 3 4 5 6 7 Winning trust from our customers Promoting fair and reasonable business Isuzu...

  • Page 15
    ... toward shareholders. Overview of Isuzu's corporate governance structures The Company has established a Board of Directors and an Audit Committee as internal bodies to oversee and audit important management decisions. To speed up managerial decision-making and business operations, Isuzu has...

  • Page 16
    ...the Board and Managing Executive Officer Hiroshi Nakagawa Director of the Board and Managing Executive Officer Jun Motoki Director of the Board and Senior Executive Officer Yukio Narimatsu Director of the Board Kazuhiro Mori Director of the Board Hiroyuki Maekawa Director of the Board Managing...

  • Page 17
    Financial Section ISUZU MOTORS LIMITED Annual Report 2016 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 Cash Flows Notes to...

  • Page 18
    ... Motors Limited Consolidated Five-Year Summary Millions of yen Thousands of U.S. dollars 2016 For the Year: Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Profit before extraordinary items Profit before income taxes Profit attributable to owners...

  • Page 19
    ... commercial vehicle market, Isuzu maintained its high market share through the introduction of products with superior fuel efficiency and economy, capturing 33.4% of the medium-duty and heavy-duty truck markets (down 1.1 points from the previous year) and 39.2% of the light-duty (2-3 ton) truck...

  • Page 20
    ...including Tri Petch Isuzu Sales Co., Ltd., (Bangkok, Thailand) as well as General Motors Corporation (Detroit, MI) and its affiliates. Sales to these customers are affected by fluctuations in production and sales at these customer companies and other factors over which the Isuzu Group has no control...

  • Page 21
    ...this type of environment while pursuing a manufacturing business that supports transport, it will be essential for the Group to undertake research and development initiatives that supply advanced technologies and products based on a precise understanding of market needs. However, failure or delay in...

  • Page 22
    ...Note 8) Buildings and structures Machinery and equipment Lease assets Vehicles on operating leases Construction in progress Less: accumulated depreciation Net Property, Plant and Equipment Intangible Assets Goodwill Others Total Intangible Assets Investments and Advances: Investment securities (Note...

  • Page 23
    ... Liabilities and Net Assets Current Liabilities: Short-term loans Electronically recorded obligations - operating Notes and accounts payable Lease obligations Accrued expenses Provision for directors' bonuses Accrued income taxes (Note 6) Deposits received Other current liabilities Total Current...

  • Page 24
    Isuzu Motors Limited Consolidated Statements of Income Net Sales Cost of Sales Gross Profit Selling, General and Administrative Expenses Operating Income Other Income (Expenses): Interest and dividend income Interest expense Equity in earnings of unconsolidated subsidiaries and affiliates Foreign ...

  • Page 25
    ... to owners of parent Acquisition of treasury stock Purchase of shares of consolidated subsidiaries Net changes on items other than shareholders' equity Balance at March 31, 2016 ¥ 40,644 ¥ 41,610 ¥ 635,691 ¥ (70,259) ¥ (176) 40,644 41,786 547,465 (26,671) 220 114,676 (49,543) (20,716...

  • Page 26
    ... of treasury stock Payment on dividends made by parent company Payment on dividends to non-controlling shareholders Purchase of subsidiaries stock resulting in no changes in scope of consolidation Net Cash Used in Financing Activities (For the years ended March 31, 2016 and 2015) Millions of yen...

  • Page 27
    ...20 years. Software used by the Company and its consolidated subsidiaries is amortized using the straight-line method, based on the estimated useful lives (generally 5 years). g) Leases The company, as a lessor, leases properties under arrangements. Sales and cost of sales relating to finance lease...

  • Page 28
    ... year in which such appropriation is approved by the board of directors or shareholders. n) Changes in Presentation l) Cash and Cash Equivalents For the purpose of the consolidated statements of cash flows, the Company considers all highly liquid investments with a maturity of three months or less...

  • Page 29
    ...$1,569,646 2016 2015 2016 Building and structures Machinery and equipment Land Others ¥ 8,788 ¥ 5,547 5,863 35 9,655 $ 77,991 6,780 5,864 61 49,233 52,038 312 5. Retirement Benefit Plans The Company has defined benefit plans, i.e., corporate pension fund and lump-sum payment plans. Certain...

  • Page 30
    Isuzu Motors Limited (2) The reconciliation between beginning and ending balance of plan assets Millions of yen Thousands of U.S. dollars (5) Adjustment to retirement benefit (before tax effects) Millions of yen Thousands of U.S. dollars 2016 2015 2016 Changes in plan assets: Plan assets at ...

  • Page 31
    ...Act No.13 of 2016) were enacted on March 29, 2016 and the corporate income tax rate has been reduced from the consolidated fiscal year beginning April 1, 2016. As a result, the effective tax rate used for the measurement of a deferred tax asset and a deferred tax liability was changed from 32.2% for...

  • Page 32
    Isuzu Motors Limited 7. Shareholders' Equity Changes in the numbers of shares issued and outstanding for the years ended March 31, 2016 and 2015 are as follows: Common stock outstanding Balance at the beginning of the year Decrease Balance at the end of the year 9. Commitment Lines The Company and...

  • Page 33
    ...(2) Operating lease Future minimum lease payments of operating lease as of March 31, 2016 and 2015 are as follows: Millions of yen Thousands of U.S. dollars ¥ 11,677 $ 145,085 2. Lessee (1) Financing lease Finance lease transactions, except for those which substantially transfer the ownership to...

  • Page 34
    Isuzu Motors Limited As of March 31, 2015 Classification Type of derivative transactions Foreign exchange forward contracts Buy Japanese yen Australian dollar Non-market transaction U.S. dollar Others Foreign exchange forward contracts Sell Australian dollar U.S. dollar Others Total Contract amount...

  • Page 35
    ...related As of March 31, 2016 Hedge accounting method Interest rate swaps under the exceptional accounting method Type of derivative transactions Interest rate swaps Pay fixed receive floating Total Main hedged items Contract amount Millions of yen Thousands of U.S. dollars Over one year Fair value...

  • Page 36
    ..., it is extremely difficult to assume their fair values. Therefore, they are not included in "(4) Investment securities" mentioned above. The redemption schedule for monetary receivables and marketable securities with maturity dates as of March 31, 2016 and 2015 are as follows: As of March 31...

  • Page 37
    ... of yen Thousands of U.S. dollars c) Information by major customer Name of customers Tri Petch Isuzu Sales Co., Ltd Millions of yen Net sales Thousands of U.S. dollars 2016 Assets and liabilities relating to finance lease transactions ¥ 3,482 ¥ 2015 2016 310,801 2,758,263 3,349 $ 30,901...

  • Page 38
    Isuzu Motors Limited Report of Independent Auditors 36

  • Page 39
    ...., Ltd. Isuzu Leasing Services Ltd. IJT Technology Holdings Co., Ltd. Isuzu LINEX Co., Ltd. Shonan Unitec Co., Ltd. J-Bus Limited Nippon Fruehauf Co., Ltd. Isuzu Autoparts Manufacturing Corporation (IAMC) 114 North Main Avenue, Phase III, Special Economic Zone, Laguna Technopark, Binan, Laguna 4024...

  • Page 40
    ...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 41
    ... 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...

  • Page 42