Isuzu 2008 Annual Report Download

Download and view the complete annual report

Please find the complete 2008 Isuzu annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 48

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48

8
2008
Challenging the
Next Generation

Table of contents

  • Page 1
    8 2008 Challenging the Next Generation

  • Page 2
    ...Isuzu Motors Limited Annual Report 2008 Profile Isuzu Motors Limited was founded in 1916 as one of the Japan's first automobile manufacturers. Isuzu also developed Japan's first air-cooled diesel engine and has been leading the truck industry in Japan. Advanced Isuzu products like the N-Series (ELF...

  • Page 3
    ...diesel engines, alternative fuels such as compressed natural gas (CNG), as well as developing hybrid vehicles. Our mission is helping to build a better life for people around the world by supporting "carrying" and "moving." Our goal is to win the trust of all of our customers, to make Isuzu the name...

  • Page 4
    ... Foreign Exchange Market on March 31, 2008. The Company has changed the accounting date of 8 consolidated subsidiaries in the ASEAN area to a 15-month period from January 1, 2007 to March 31, 2008 in the current consolidated fiscal year. Refer to page 34 for more information. Net Sales (Millions of...

  • Page 5
    ... and Hino Reach a Basic Agreement on Jointly Developing Exhaust Gas After-treatment System and Cabins of Heavy Duty Trucks Isuzu Meets Mid-term Business Plan Goals One Year Early, Develops New Mid-term Business Plan Isuzu Begins Full-scale Production and Sale of Medium- to Heavy-duty Buses in India...

  • Page 6
    ... At a Glance n Isuzu Motors Limited Annual Report 2008 Isuzu at a At a Glance Glance Trucks Isuzu trucks enjoy the strong support of customers around the world as a result of their economy, safety, durability and reliability, and advanced environmental performance. Models are developed to fulfill...

  • Page 7
    ... LCV Global Shipment Diesel Engine Production CV: Commercial vehicle, LCV: Light commercial vehicle, pickup trucks Industrial engines Isuzu supplies an extensive line-up of industrial diesel engines ranging from light-duty to heavy-duty to domestic and overseas industrial machinery manufacturers...

  • Page 8
    ...buffeted by significant change. Part of this was the major impact on the global economy of the rapid rise in oil and other raw material prices, which also resulted in greater economic activity in resource-producing countries, as well as a positive change in the emergence of new markets. On the other...

  • Page 9
    ... in new markets which we have already begun as the first stage of globalization in previous Mid-term Business Plan, and expand sales volume through the introduction of new CV models. We will try harder to increase the quality and value that builds the competitive strength of our products, as...

  • Page 10
    ... the scale of our business, and leveraging all group resources to achieve sustainable growth by (1) Expanding/strengthening international operations, (2) Enhancing product competitiveness and product lineup, and (3) Reinforcing basic technology. New Mid-term Business Plan Positioning Aiming...

  • Page 11
    ...UP ALL Isuzu Share NA 20%+ 10 20%

  • Page 12
    .... In North America, South America, Canada, and Europe, we will strengthen locally centralized production structures. We plan to construct new sales facilities in the Andean region of South America and the Middle East. CV/LCV Product / Market Strategies - Reinforcing International Operations In...

  • Page 13
    ... subject to change due to changes in the future economic environment. Product/Market Plan Under a 3-core operating organization, Isuzu will realize robust growth by positioning International CV sales as the primary driver of consolidated revenue/ profit, while reinforcing the DE business as future...

  • Page 14
    ... commercial vehicle (CV) sales of 350,000 units by increasing sales in these regions, while expanding our product line to include not only the ELF, but also medium- and heavy-duty trucks. Q2: What is the outlook for Isuzu's Thailand business, and how do you plan to develop the LCV business going...

  • Page 15
    ... will support sales companies by offering assistance in their other areas of responsibility, including asset management, capital procurement, sales financing, insurance, used vehicles, and truck bodies, to achieve higher levels of efficiency. Q3: How has the market reacted to the new ELF and FORWARD...

  • Page 16
    ... with the Management n Isuzu Motors Limited Annual Report 2008 3. Interview with Naotoshi Tsutsumi Executive Vice President (Division Executive, Manufacturing Division) Q1: What is Isuzu's current production capacity by region? A1: For CVs, our global capacity is 330,000 units. Regionally, our...

  • Page 17
    ... Toyota and Hino. Q2: What are the characteristics of Isuzu's next-generation pickup truck? A2: It will offer excellent basic performance that more than meets market needs in the 120 countries to which we will export it, while satisfying the requirements of customers in Thailand, the largest pickup...

  • Page 18
    ... global models that offer world-class performance and quality in every aspect of their design, especially through their exceptional safety, economy, and environmental performance. SEE technology for the next generation Earning the trust of customers worldwide is at the heart of Isuzu's development...

  • Page 19
    ... to provide better products to customers. In addition to collaborating in the manufacture of buses through J-Bus Co., Ltd., a company in which each partner owns a 50 percent stake, Isuzu and Hino are working together on the supply of truck components. Developing alternative fuel vehicles Isuzu is...

  • Page 20
    ... findings to work in improving the management system, but also issue an annual Environmental and Social Report. In April 2008, we moved to accelerate these initiatives by establishing an Eco Planning Department. Developing technologies for reducing environmental impact: Products To address the full...

  • Page 21
    ...Tochigi Factory to using natural gas for energy. Isuzu's social contribution activities Local activities by group companies around the world are too numerous to mention. They aim to create contacts between Isuzu and people in these societies outside our business domain. Cooperating with the Japanese...

  • Page 22
    ... Budget Committee Price Committee Plant Investment Committee Merchandise Development Committee Internal Auditing Department Compliance System Information Management System Risk Management System Tasks Audits Recommendations Confirmation of task execution Division Department Group Employee 20

  • Page 23
    ... and provided training for all employees in managerial positions. For employees in non-managerial positions, we offered an e-learning-based compliance training program. Additionally, personnel visited all Group companies to offer compliance training for managers. The entire Isuzu Group is working...

  • Page 24
    ... Isuzu Motors Limited Annual Report 2008 DIRECTORS Chairman and Representative Director President and Representative Director Executive Vice Presidents 1 Yoshinori Ida 2 Susumu Hosoi 3 Yoshihiro Tadaki 4 Goro Shintani 5 Naotoshi Tsutsumi Directors 11 10 EXECUTIVE OFFICERS Senior Executive Officers...

  • Page 25
    Financial Section n Isuzu Motors Limited Annual Report 2008 Financial Section ISUZU MOTORS LIMITED ANNUAL REPORT 2008 Consolidated Five-Year Summary MD&A Consolidated Balance Sheets Consolidated Statements of Income Consolidated Statements of Change in Net Assets Consolidated Statements of Cash ...

  • Page 26
    Financial Section n Isuzu Motors Limited Annual Report 2008 Consolidated Five-Year Summary Millions of yen Thousands of U.S. dollars 2008 For the Year: Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating... on the Foreign Exchange Market on March 31, 2008. 24

  • Page 27
    ... as of June 27, 2008. the ASEAN region. In the Thai market, where pickup trucks account for around 60% of total market sales, Isuzu Group pickup trucks captured a 36% market share, sustaining steady sales growth in the face of intensifying competition. North American sales fell 19.0% to ¥141...

  • Page 28
    ... 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 financing activities Net cash used in financing...

  • Page 29
    ... to produce, 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 Group's performance and financial position. Isuzu provides management guidance and...

  • Page 30
    Financial Section n Isuzu Motors Limited Annual Report 2008 Consolidated Balance Sheets Assets Current Assets: Cash and time deposits (Note 2, 4) Receivables: Notes and accounts (Note 4) Less : allowance for doubtful receivables Securities (Note 3) Inventories Deferred tax assets (Note 6) Other ...

  • Page 31
    Financial Section n Isuzu Motors Limited Annual Report 2008 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 income taxes (Note 6) Deposits received Other current ...

  • Page 32
    ... Section n Isuzu Motors Limited Annual Report 2008 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 (For the years ended March 31, 2008, 2007...

  • Page 33
    Financial Section n Isuzu Motors Limited Annual Report 2008 Consolidated Statements of Change in Net Assets (Note 7) (For the years ended March 31, 2008, 2007 and 2006) Millions of yen Treasury stock, at cost ¥ (220) Unrealized holding gain on securities ¥ 8,324 Unrealized holding gain on land...

  • Page 34
    ... for income taxes Net Cash Provided by Operating Activities Cash Flows from Investing Activities Payment on purchase of securities Proceeds from sales of securities Payment on purchase of property, plant and equipment Proceeds from sales of property, plant and equipment Payment on long-term loans...

  • Page 35
    ... Standard for retirement benefits 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...

  • Page 36
    Financial Section n Isuzu Motors Limited Annual Report 2008 losses are amortized in the year following the year using the straightlined method over the average of the remaining service lives of mainly 10 years commencing with the following periods, which are shorter than the average remaining ...

  • Page 37
    Financial Section n Isuzu Motors Limited Annual Report 2008 3. Securities Fair value of securities of other securities as of March 31, 2008 and 2007 are as follows: Millions of yen Thousands of U.S. dollars 2008 (as of March 31, 2008) Acquisition costs ¥ 8,912 - - ¥ 8,912 Carrying value ¥ 21...

  • Page 38
    ... 2007 Thousands of U.S. dollars 2008 Retirement benefit obligation at end of the year Fair value of plan assets Accrued retirement benefits obligation on balance sheets Prepaid pension cost Net (Details on net amount) Unrecognized actuarial net loss Unrecognized prior service cost Net ¥ (121,663...

  • Page 39
    Financial Section n Isuzu Motors Limited Annual Report 2008 6. Income Taxes Accrued income taxes in the balance sheets include corporation tax, inhabitant taxes and enterprise tax. Income taxes in the consolidated statement of income include corporation tax and inhabitant taxes and enterprise tax....

  • Page 40
    Financial Section n Isuzu Motors Limited Annual Report 2008 8. Land Revaluation In accordance with the Law concerning Revaluation of Land enacted on 31 March, 1999, the land used for business owned by the Company and its domestic consolidated subsidiaries and domestic affiliates was revalued, and ...

  • Page 41
    Financial Section n Isuzu Motors Limited Annual Report 2008 (2) Operating lease is as follows. a) As a lessee Future payment obligations of operating lease expenses as of March 31, 2008 and 2007 are as follows: Millions of yen 2008 2007 Thousands of U.S. dollars 2008 Portion due within one year ...

  • Page 42
    Financial Section n Isuzu Motors Limited Annual Report 2008 12. Segment Information (1) The business segment information for the company and its consolidated subsidiaries for the years ended March 31, 2008 and 2007 As net sales, operating income and total assets from the automotive business of the...

  • Page 43
    ...Isuzu Motors Limited Annual Report 2008 (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 for the years ended March 31, 2008 and 2007 were as follows: North America...

  • Page 44
    Financial Section n Isuzu Motors Limited Annual Report 2008 Report of Independent Auditors 42

  • Page 45
    ...Africa General Motors Egypt S.A.E. (GME) 3 Abu El Feda Street, Zamalek, Cairo, Egypt Tel: 20-2-735-4004/2736-2116 Isuzu Truck South Africa (Pty) Limited Woodmead North Office Park, 54 Maxwell Drive, Jukskei View Ext 7, Sandton, Gauteng Republic of South Africa Tel: 27-11-563-4000 North America Isuzu...

  • Page 46
    ... ELF. In addition, the D-MAX pickup truck has become the bestselling model in numerous markets. DA6, Japan's and Isuzu's first Isuzu's Mimamori-kun Online Service, air-cooled diesel engine which was introduced by the company in 2004, helps operators save fuel and drive safely by providing real-time...

  • Page 47
    ... Limited Annual Report 2008 Isuzu Motors Limited Date of Establishment April 9, 1937 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 Head Office Plants Tochigi Plant Fujisawa Plant Manufacturing of engines and parts...

  • 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 /