Isuzu 2007 Annual Report Download

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GROWING OUR
POTENTIAL

Table of contents

  • Page 1
    R U O G N I W O R G L A I T N E T O P

  • Page 2
    ..., Excellence A global team delivering inspired products and services committed to exceeding expectations Our Corporate Statement Forward-Looking Statements This annual report contains forward-looking statements about Isuzu Motors Limited's plans, strategies, beliefs and future performance. These...

  • Page 3
    ...advanced diesel engines and launch of our first global trucks, the ELF and FORWARD, Isuzu continues to aggressively invest in its manufacturing and R&D facilities around the world. At the same time as we are boosting our distribution, sales and service network, we strive to ensure "Isuzu always mean...

  • Page 4
    ...number of companies around the world. They value Isuzu diesels for their combination of power, performance and reliability in industrial applications, and sure-starting dependability in marine use. In Japan, Isuzu leads the market in sales of stand-alone diesel engines to other companies. Automotive...

  • Page 5
    ...Featuring a swirl chamber-type diesel engine (DE) • Change from preheating combustion to swirl chamber type engine • Full-synchro, 4-speed manual transmission and standard brake hydromaster 1972 ELF Mypack, Japan's first FWD light-duty truck 1975 Third-generation ELF • Redesigned ergonomic cab...

  • Page 6
    ... Financial Highlights Isuzu Motors Limited Annual Report 2007 Millions of yen Thousands of U.S. dollars Year ended March 31 For the Year: Net sales Net income At Year End: Total assets Shareholders' equity 2007 ¥1,662,925 92,394 2006 ¥1,581,857 58,956 2005 ¥1,493,567 60,037 2007...

  • Page 7
    ... of power generation for all motor vehicles, and our next generation of advanced DE incorporating our advanced DE technologies (see page 14 for more details) build on the thermal efficiency, fuel efficiency and reduced CO2 emissions of DEs compared to gasoline engines, to give our CVs a competitive...

  • Page 8
    ... service in the over 120 markets in which we operate. Our DE supply network includes manufacturing facilities in Europe, North America, Asia and Japan, supported by research centers in the United States, Germany, Thailand and Japan. All facilities are interlinked, making Isuzu the only truly global...

  • Page 9
    ... and Mitsubishi Corporation established Isuzu Automotive Europe GmbH (IAE), to integrate marketing and sales management operations in Benelux, Spain/Portugal, and Germany/Austria. The two companies already share distributors in these countries, and integrating light-duty and pickup trucks into one...

  • Page 10
    Message from the Chairman n Isuzu Motors Limited Annual Report 2007 Growing our vision Fiscal 2007 (ending March 2007) was our fourth consecutive year of increasing sales and profits, and I am pleased to report that we posted record operating income and working profit. I would like to express my ...

  • Page 11
    ... Motors celebrates the 70th anniversary of its founding. Over the course of these 70 years, our business has grown to a global scale, and today Isuzu trucks contribute to people's daily lives by playing a key role in distribution in more than 120 countries worldwide. We are fortunate that customers...

  • Page 12
    ..., Isuzu offers a full product line of DE technology that complies with rigorous environmental standards in Europe, the U.S., and Japan, and we are working to build a solid position in the industry by marketing highly differentiated and unique CVs around the world based on this advanced diesel...

  • Page 13
    ... by pursuing sustainable growth. I look forward to the continued understanding and support of our shareholders and investors as we work to achieve this goal. Highlights April 2006 July 2006 Established sales company in Ukraine. Launched mid-size bus in India. Launched light truck business in Russia...

  • Page 14
    ...every market. Question 4: How do you plan to develop Isuzu's truck products? We have new light- and medium-duty trucks in the form of the 700P series, which offers robust cargo capacity thanks to its high-output, small-displacement engine and lightweight design, excellent fuel economy, and low cost.

  • Page 15
    ... all three major emissions regulations standards (Japan, Europe, and the U.S.) and in supplying power plants for use in our own CVs, GM passenger cars, and industrial engine applications. In the future, we will pursue a business partnership with Toyota Motor Corporation in this area as part of an...

  • Page 16
    ... in both products and markets, to establish a solid business foundation. SEE technology provide the keys to growth Isuzu's on-going pursuit of making the best CVs in the world is based on creating a global design and standard, through the development of our advanced "SEE technologies" that focus...

  • Page 17
    ...Mimamori-kun Online Service, the first full-scale telematics for CVs, Isuzu works closely with its customers. The innovative Mimamori-kun system monitors vehicle operation and driving conditions in real time, helping logistics companies to monitor performance, to optimize fuel efficiency and enhance...

  • Page 18
    ... alternative fuel vehicles. Realizing the impact of light-duty delivery trucks that travel short distances in urban areas, Isuzu has developed compressed natural gas (CNG) and diesel-hybrid vehicles. ELF and FORWARD CNG trucks are in mass production, and have proved highly popular, with the ELF CNG...

  • Page 19
    ... service, an advanced real-time vehicle diagnostics and information system designed to help customers increase the efficiency of vehicle operation and enhance fuel economy. The service was awarded the Transport Minister's Prize at the 2nd Eco-Products Awards in 2005 for its support of eco-driving...

  • Page 20
    ... governance and compliance are a critical management priority, the foundation of our ability to realize our Corporate Vision of "Isuzu will always mean the best" and our Corporate Mission of "Trust, Action, Excellence". To continuously grow as a company and generate profits we need to live by our...

  • Page 21
    ... HR Department became the Business Audit Group, an independent structure under which we began conducting our internal audits. l As part of our sustainability governance program, in 1999 we began publishing an annual Environmental Report that records the company's environmental management performance...

  • Page 22
    Board of Directors Isuzu Motors Limited Annual Report 2007 11 9 7 5 3 1 2 4 6 8 10 DIRECTORS Chairman and Representative Director President and Representative Director Executive Vice Presidents 1 Yoshinori Ida 2 Susumu Hosoi 3 Goro Shintani 4 Yoshihiro Tadaki 5 Naotoshi Tsutsumi ...

  • Page 23
    Financial Section ISUZU MOTORS LIMITED ANNUAL REPORT 2007 Consolidated Five-Year Summary MD&A Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Change in Net Assets Consolidated Statements of Cash Flows Notes to Consolidated Financial Statements Report of ...

  • Page 24
    Financial Section Consolidated Five-Year Summary Millions of yen Isuzu Motors Limited Annual Report 2007 Thousands of U.S. dollars 2007 For the Year: Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Income (loss) before extraordinary items Income ...

  • Page 25
    ... brisk sales of pickup trucks in Thailand. (The figures shown for each of Isuzu's 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.) As a result, Isuzu's operating...

  • Page 26
    ... and an ensuing 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. B. Assets As of March 31...

  • Page 27
    ...Group sells, they may have a negative impact on the Group's performance and financial position. Generally, a strengthening of the yen relative to other currencies has a negative impact on the Group's business, and a weakening of the yen has a positive impact. Isuzu Motors Limited Annual Report 2007...

  • Page 28
    ... Total Current Assets 272,154 (2,947) 133,083 34,312 34,481 605,221 ¥ 134,136 (As of March 31, 2007, 2006 and 2005) Isuzu Motors Limited Annual Report 2007 Millions of yen Thousands of U.S. dollars 2007 2006 ¥ 108,642 252,441 (3,393) 137,754 27,632 31,063 554,141 2005 ¥ 139,357 248,744...

  • Page 29
    Financial Section Isuzu Motors Limited Annual Report 2007 Millions of yen Thousands of U.S. dollars Liabilities and Net Assets Current Liabilities: Bank loans Current portion of bonds Notes and accounts payable Accrued expenses Accrued ...

  • Page 30
    Financial Section Consolidated Statements of Income Net Sales Cost of Sales Gross Profit Selling, General and Administrative Expenses (Note 5) Operating...years ended March 31, 2007, 2006 and 2005) Isuzu Motors Limited Annual Report 2007 Millions of yen Thousands of U.S. dollars 2007 ¥ 1,662,925 ...

  • Page 31
    Financial Section Consolidated Statements of Change in Net Assets (Note 7) Isuzu Motors Limited Annual Report 2007 (For the years ended March 31, 2007, 2006 and 2005) Millions of yen Treasury stock, at cost (168) Unrealized holding gain on securities 7,518 Unrealized holding gain on land ...

  • Page 32
    ...bonds with warrant attached Proceeds from minority shareholders Payment on retirement of Preferred Stock Payment on dividends made by parent company Payment on dividends to minority shareholders Others Net Cash Used in Financing Activities Effect of Exchange Rate Changes on Cash and Cash Equivalents...

  • Page 33
    ...in Japan. In accordance with this standard, accrued employees' retirement benefits are provided mainly at an amount of projected benefit obligation and the fair value of the pension plan assets at the end of the balance sheet date. Prior service costs are being amortized as incurred by straight-line...

  • Page 34
    ... Retirement Benefit Plans" (Accounting Standards Board of Japan Guidance No. 1). Gains and losses on these transitions, ¥157 millions ($1,330 thousands) gain and ¥192 millions ($1,629 thousands) loss, are included under Extraordinary Items, respectively. Isuzu Motors Limited Annual Report 2007...

  • Page 35
    ...' equity were prepared although it was not required in Isuzu Motors Limited Annual Report 2007 Japan. Certain reclassification has been made in the shareholders' equity and certain other items in the balance sheet for the year ended March 2006 and 2005. The consolidated statement of changes...

  • Page 36
    Financial Section The annual maturities of long-term debt at March 31, 2007 are summarized as follows: Planned maturity date Millions of yen Thousands of U.S. dollars Isuzu Motors Limited Annual Report 2007 The assets pledged as collateral for certain loans and other liabilities at March 31, 2007 ...

  • Page 37
    ... in the balance sheets include corporation tax, inhabitants taxes and enterprise tax. Income taxes in the consolidated Isuzu Motors Limited Annual Report 2007 statement of income include corporation tax and inhabitants taxes and enterprise tax. The significant components of the Company and its...

  • Page 38
    ... 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 without closing price) starting from 45th business day preceding the first day of period for claiming acquisition (calculated...

  • Page 39
    ...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 closing price) starting from the 45th business day...

  • Page 40
    ... 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 closing price) starting from the 45th business...

  • Page 41
    ... are as follows: Isuzu Motors Limited Annual Report 2007 Millions of yen 2007 2006 Thousands of U.S. dollars 2007 Guarantees of bank loans Export bills discounted Notes endorsed Notes discounted ¥ 2,417 159 - - ¥ 2,647 99 - 725 $ 20,478 1,349 - - 11. Lease Transactions (1) Finance lease...

  • Page 42
    ... acquisition price and others based on Article 157-1 of the Corporation Law was resolved at the Board of Directors Meeting held on the same day. (1) Reasons for Acquisition To avoid latent dilution of the common stocks and to ease the burden of payment of dividends. (2) Types and Number of Shares to...

  • Page 43
    Financial Section 14. Segment Information Isuzu Motors Limited Annual Report 2007 (1) The business segment information for the company and its consolidated subsidiaries for the years ended March 31, 2007 and 2006 As net sales, operating income and total assets from the automotive business of the ...

  • Page 44
    ... Isuzu Motors Limited Annual Report 2007 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, 2007, 2006 and 2005, and the related consolidated statements of operations...

  • Page 45
    ... Kanagawa Isuzu Motors Ltd. Tokyo Isuzu Motors Ltd. I Metal Technology Co., Ltd. Isuzu LINEX Corporation J-Bus Limited Jidosha Buhin Kogyo Co., Ltd. TDF Corporation Nippon Fruehauf Co., Ltd. Isuzu Engine Manufacturing Co., (Thailand) Ltd. (IEMT) Isuzu Motors Limited Annual Report 2007 Isuzu Motors...

  • Page 46
    ... the ELF, Japan's top-selling light-duty truck for the last 10 years, with cumulative production of 5 million units. Today the ELF is available in numerous variants, including with next generation diesel, CNG and diesel-hybrid power plants. The FORWARD medium-duty truck series first went on sale in...

  • Page 47
    ... 25,000,000 1 Shares authorized: Shares issued: No. of shareholders: Major Shareholders (% of total) Common Stock Mitsubishi Corporation Itochu Corporation The Master Trust Bank of Japan, Ltd. (Trust Account) Japan Trustee Services Bank, Ltd. (Trust Account) Toyota Motor Corporation Isuzu Partners...

  • Page 48
    ISUZU MOTORS LIMITED 6-26-1, Minami-oi, Shinagawa-ku Tokyo 140-8722, Japan Tel: +81-3-5471-1141 Fax: +81-3-5471-1043 ht tp: // w w w.isuzu.co.jp / world / Printed in Japan on recycled paper