Isuzu 2009 Annual Report Download

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Building on Our Strengths
to Generate
Sustainable Growth
2009

Table of contents

  • Page 1
    2009 Building on Our Strengths to Generate Sustainable Growth

  • Page 2
    ... Auditors Corporate Directory History of Isuzu Corporate Data 1 2 3 4 6 8 12 14 16 17 18 19 22 24 25 26 27 36 37 38 39 Our Corporate Statement Our Corporate Vision Isuzu will always mean the best A leader in transportation, commercial vehicles and diesel engines, supporting our customers and...

  • Page 3
    ... through commercial vehicle telematics systems that promote fuel-efficient driving and streamline vehicle operation. During the more than 90 years since our founding, we have done our best to provide Isuzu products that are chosen and trusted by all of our customers worldwide. Going forward, we...

  • Page 4
    Consolidated Financial Highlights Isuzu Motors Limited Annual Report 2009 Consolidated Financial Highlights Millions of yen Thousands of U.S. dollars Year ended March 31 For the Year: Net sales Net income (loss) At Year-End: Total assets Net assets 2009 ¥ 1,424,708 (26,858) 2008 ¥1,924,833 ...

  • Page 5
    ..., the Company had conducted its North American operations through direct investments in Isuzu Motors America Inc., Isuzu Commercial Truck of America Inc., and Isuzu Manufacturing Service of America Inc., which were responsible for the SUV and industrial engine business, commercial vehicle business...

  • Page 6
    ... retains No.1 share in both the light-duty and mediumduty segments of the market, reflecting customers' favorable evaluation of our products' blend of high durability and reliability, advanced environmental performance and economy. 100 Asia: Strengthening the Indonesia Business In an initiative...

  • Page 7
    ... Limited Annual Report 2009 Europe Production of light-duty trucks began at Sollers-Isuzu, a joint venture with Russia's OAO Sollers in Elabuga, Republic of Tatarstan, Russian Federation. Demand is expected to grow in the future. Going forward, Isuzu will seek to grow sales by entering the pickup...

  • Page 8
    ..., and the Company remained profitable while making development and capital investments to enhance competitiveness. During the second half, we made dramatic cuts in production to deal with slowing sales and increasing inventory in the face of an abrupt contraction in demand across all markets due to...

  • Page 9
    Isuzu Motors Limited Annual Report 2009 benefits of sales opportunities and reductions in fixed costs. During this fiscal year, Isuzu will take the following five steps to prioritize our response to these challenges based on the changes we're seeing in our business environment. Goals include ...

  • Page 10
    ... opportunity to increase sales volume and market share. We are also working to maximize operating profit through efforts to cut costs by supporting asset management, capital procurement, sales financing, insurance, used vehicles, and truck bodies at sales companies based on the Isuzu Network (INW...

  • Page 11
    ...the economic slowdown, pickup truck sales remain comparatively strong. A weak rand is making it difficult for customers in South Africa to purchase cars, but sales of the redesigned ELF are off to a good start. Total demand has fallen in Saudi Arabia as declining crude prices lead to tighter credit...

  • Page 12
    ... technologies for dieselpowered vehicles. To lower CO2 emissions requires the development and commercialization of super-clean diesel engines that not only produce clean exhaust, but also excel in fuel economy. Isuzu also boasts an unrivalled market share in compressed 10 natural gas (CNG) vehicles...

  • Page 13
    Isuzu Motors Limited Annual Report 2009 by reducing the displacement of the base engine and improving its hybrid control. Isuzu is actively working to commercialize so-called "plug-in" hybrid vehicles and to develop next-generation hybrid vehicles in an effort to further improve the fuel economy ...

  • Page 14
    ...filling our responsibilities. Isuzu Group companies worldwide are working to prevent global warming. In addition to developing vehicles and diesel engines with exceptional fuel economy and environmental performance, Isuzu is committed to the goal of sustainable development. Going forward, we will...

  • Page 15
    ...technology, allowing the Fujisawa Plant stop using its incinerator in fiscal 2008. Helping customers cut fuel costs with the Mimamori-Kun Online Service Isuzu's Mimamori-Kun Online Service is a sophisticated driving management system designed to ease the pressures being placed on transport operators...

  • Page 16
    ... Directors report on the conduct of corporate operations to monthly Board of Directors Meeting and every other week to the Management Meeting, which is subordinate in the organization to the Board of Directors. In addition, Isuzu has implemented a corporate officer system to provide support...

  • Page 17
    ... public. Compliance Structure Board of Directors Management Committee Advises By invitation President Auditing Division Compliance Management Group Compliance management members Department managers Employees Reports/consults Compliance Committee Compliance Committee Secretariat Group companies...

  • Page 18
    Board of Directors Isuzu Motors Limited Annual Report 2009 Directors Yoshinori Ida Chairman and Director Susumu Hosoi President and Representative Director Yoshihiro Tadaki Executive Vice President and Representative Director Yasuaki Shimizu Director of the Board and Managing Executive Officer...

  • Page 19
    Financial Section Isuzu Motors Limited Annual Report 2009 Financial Section ISUZU MOTORS LIMITED ANNUAL REPORT 2009 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 20
    Financial Section Consolidated Five-Year Summary Millions of yen Thousands of U.S. dollars 2009 For the Year: Net sales Cost of sales Gross profit Selling, general and administrative expenses Operating income Income before extraordinary items Income before income taxes Net income (loss) At Year-...

  • Page 21
    ... commercial vehicle market, Isuzu was able to maintain a high market share through the introduction of products with superior fuel efficiency and economy, capturing 29.7% of the medium-duty and heavy-duty trucks market (down 1.7% from the previous year) and 39.1% of the light-duty (2-3 ton) truck...

  • Page 22
    ...countries and regions where Isuzu sells vehicles. Therefore, economic recession 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...

  • Page 23
    ... 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 advice to companies-including...

  • Page 24
    ...71,947 33,293 4,155 7,358 20,109 (10,073) 126,791 655,664 176,384 41,818 78,740 222,283 (98,140) 1,076,750 Land Buildings and structures Machinery and equipment Lease assets Construction in progress Less : accumulated depreciation Net Property, Plant and Equipment Other Assets 269,289 244,454 571...

  • Page 25
    Isuzu Motors Limited Annual Report 2009 Millions of yen Thousands of U.S. dollars Liabilities and Net Assets Current Liabilities: Bank loans Current portion of bonds Notes and accounts payable Lease obligations Accrued expenses Accrued income taxes (Note 6) Deposits received Other current ...

  • Page 26
    ... accounts Loss on sales or disposal of property, plant and equipment, net Loss on revaluation of investments Impairment loss on fixed assets (Note 11) Dismantlement and other cost on former Kawasaki Factory Special warranty cost Loss on withdrawal from the North American SUV project Others, net...

  • Page 27
    Isuzu Motors Limited Annual Report 2009 Consolidated Statements of Change in Net Assets (Note 7) (For the years ended March 31, 2009, 2008 and 2007) Millions of yen Treasury stock, at cost ¥ (229) Unrealized holding gain on securities ¥ 15,014 Unrealized holding gain on land revaluation ¥ 74,...

  • Page 28
    ... minority shareholders Repayment of lease obligations Payment on acquisition of preferred stock 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...

  • Page 29
    ... Financial Accounting 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...

  • Page 30
    ...a change in tax rate are recognized in income in the period that includes the enacted date. (Balance sheet values are measured by the method of devaluing book price to reflect decreases in profitability) due to the adoption of the "Accounting Standard for Measurement of Inventories" (ASBJ Statement...

  • Page 31
    Isuzu Motors Limited Annual Report 2009 3. Securities Fair value of securities of other securities as of March 31, 2009 and 2008 are as follows: Millions of yen Thousands of U.S. dollars 2009 (as of March 31, 2009) Acquisition costs ¥ ¥ 5,722 5,722 Carrying value ¥ 10,145 ¥ 10,145 ...

  • Page 32
    ... of yen 2009 2008 Thousands of U.S. dollars 2009 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...

  • Page 33
    Isuzu Motors Limited Annual Report 2009 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. The significant ...

  • Page 34
    ...,459 192,858 110,601 ii) Future payment obligations of finance lease expenses as of March 31, 2009 and 2008 are as follows: Millions of yen 2009 2008 Thousands of U.S. dollars 2009 Portion due within one year Thereafter Total ¥ 6,969 4,702 11,671 ¥ 8,868 11,414 20,283 $ 70,946 47,871 118...

  • Page 35
    ... the USA), GM released the announcement that, regarding its medium-duty commercial vehicle operations in the North America region, it will cease the production of the medium-duty commercial vehicles by the end of July, 2009. As for the group-wide impact on financial position and operation activities...

  • Page 36
    ... company and its consolidated subsidiaries for the years ended March 31, 2009 and 2008 were as follows: Japan Year ended March 31, 2009 Sales to third parties North America Asia Other Millions of yen Total Eliminations Consolidated Inter-area sales and transfers Total sales Operating expenses...

  • Page 37
    Isuzu Motors Limited Annual Report 2009 (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, 2009 and 2008 were as follows: North America...

  • Page 38
    Financial Section Isuzu Motors Limited Annual Report 2009 Report of Independent Auditors 36

  • Page 39
    ...-2116 Isuzu Technical Center of Asia Co., Ltd. (ITA) 6th Floor, 38Kor. Moo 9 Poochaosamingprai Road, Samrong-Tai, Phrapradaeng, Samutprakan 10130, Thailand Tel: 66-2-394-2541 Isuzu Truck South Africa (Pty) Limited Woodmead North Office Park, 54 Maxwell Drive, Jukskei View Ext 7, Sandton, Gauteng...

  • Page 40
    ... only in Thailand, but also around the world in locations as diverse as South America and Africa. Isuzu supplies more than products in the form of commercial vehicles. The Company's Mimamori-kun Online Service which was introduced in 2004, helps operators of commercial vehicles save fuel and drive...

  • Page 41
    Corporate Data Isuzu Motors Limited Annual Report 2009 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 Plants Tochigi Plant Fujisawa Plant Manufacturing of engines and ...

  • Page 42
    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 /