Isuzu 2014 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    Corporate Statement CONTENTS Profile Consolidated Financial Highlights Major Press Releases 1 2 3 4 6 8 12 14 15 16 17 20 22 23 23 24 25 36 37 38 39 Our Corporate Vision At a Glance Message from the President Special Feature: Fifty years of manufacturing Isuzu trucks in Thailand CSR Board of ...

  • Page 3
    ... 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 market. (CY 2013 actual results) l Isuzu products are sold in well over 100 countries worldwide, and overseas sales account for more than 60% of our business...

  • Page 4
    ...374 Yen U.S. dollars 2014 2013 ¥ 56.98 2014 $ 0.68 Per Share: Net income - primary ¥ 70.43 Note: U.S. dollar figures have been calculated at the rate of ¥102.92=U.S.$1, the approximate rate of exchange prevailing on the Foreign Exchange Market on March 31, 2014. Net Sales (Millions of yen...

  • Page 5
    Major Press Releases Business-related April 1, 2013 January 24, 2014 Isuzu Establishes New Auto-lease Company: Isuzu Leasing Service Ltd. (ILS) in Japan The Isuzu Group will put structures in place to meet a broad range of customer needs by adding financial services to its existing life cycle ...

  • Page 6
    ... a leading position in growth markets worldwide. Overseas CV shipments post a record high for the fourth consecutive year. In addition to actively investing resources in building a manufacturing system centered on the ASEAN region, China, and India, Isuzu Motors is working to expand sales in fast...

  • Page 7
    ...-duty truck in Colombia this year. Middle East/Africa l Isuzu's N series light-duty trucks continued to maintain dominant market share in Saudi Arabia. l In South Africa, Isuzu achieved No. 1 market share for CVs with a GVW of 3.5 tons and over for the first time. China l Demand for CVs began...

  • Page 8
    ..., a greater-than-expected slowdown in demand in Thailand, a key market for Isuzu, led to a year-on-year decline in total sales volume, including pickup trucks. However, (commercial) truck sales were generally brisk in North America, the Middle East, Africa, and other regions. As a result, we shipped...

  • Page 9
    ...to implement a growth strategy in emerging markets and maintain our business in advanced markets in order to "aim at excellence in respecting the environment to meet the demands of society, maximizing vehicle operating rates and minimizing life-cycle costs to meet customers' needs." To that end, in...

  • Page 10
    ... procurement rate of 90% and higher, and contribution to pickup trucks and derivatives in more than 110 countries worldwide, Isuzu's Thailand operations are the largest of any of Isuzu's overseas businesses, in terms of both net sales and profit. Just as Japan serves as the company's production and...

  • Page 11
    ... of Isuzu. It was designed to evoke a similar water tower at the company's Fujisawa Plant, which still stands today. Dedication of the new Gateway Plant (2012) to the Thai government's program of fostering the development of a national industry by building a supply chain of companies in Thailand...

  • Page 12
    ...of an Isuzu diesel truck by Isuzu-Mitsubishi Corporation in 1957 marked the start of Isuzu's Thai business. 1963-1969 Start of production In November 1963, Isuzu completed its first overseas plant in Thailand. The new facility began assembling trucks that previously had been imported from Japan in...

  • Page 13
    ..., and initiatives to promote automobile technologies in Thailand. Isuzu Social Club Local employees of Isuzu Motors Co., (Thailand) Ltd. (IMCT) are involved in a wide range of community service activities. The Isuzu Social Club (ISC), a clubstyle group of local employee volunteers, started its...

  • Page 14
    ... 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 all employees that aim...

  • Page 15
    ... Motors and Euglena have concluded a joint research agreement in an effort to commercialize next-generation biodiesel fuel derived from the microscopic algae Euglena gracilis. As a first step in the project, on July 1, 2014 Isuzu began operating a scheduled shuttle bus service at its Fujisawa Plant...

  • Page 16
    ... Nagai Director of the Board and Managing Executive Officer Makoto Kawahara Director of the Board and Senior Executive Officer Kuniharu Nakagawa Director of the Board and Senior Executive Officer Hiroyuki Miyagaki Director of the Board and Senior Executive Officer Chikao Mitsuzaki Director of...

  • Page 17
    Financial Section ISUZU MOTORS LIMITED Annual Report 2014 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 ...

  • Page 18
    Consolidated Five-Year Summary Millions of yen Thousands of U.S. dollars 2014 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 At Year-End: Total assets Net assets...

  • Page 19
    ... ¥435.8 billion, reflecting increased sales, particularly in the Middle East, Africa, and other regions. 6. Taxes Isuzu's net tax expense in fiscal 2013 including current income taxes and deferred income taxes was ¥28.3 billion. In fiscal 2014, the net tax expense was ¥44.6 billion. 7. Minority...

  • Page 20
    ...Isuzu sells vehicles. Therefore, economic recession and an ensuing decline in demand in the Group's major markets 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 operating...

  • Page 21
    ...The Isuzu Group invests in securities 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. In...

  • Page 22
    ... companies Others Long-term loans Deferred tax assets (Note 6) Other investments and advances Less: allowance for doubtful accounts Total Investments and Advances Property, Plant and Equipment (Note 4) Land (Note 8) Buildings and structures Machinery and equipment Lease assets Vehicles on operating...

  • Page 23
    Financial Section Millions of yen Thousands of U.S. dollars Liabilities and Net Assets Current Liabilities: Short-term loans Electronically recorded obligations - operating Notes and accounts payable Lease obligations Accrued expenses Accrued income taxes (Note 6) Deposits received Other current ...

  • Page 24
    ...and Minority Interests Income Taxes (Note 6): Current Deferred Income Before Minority Interests Minority Interests in Income of Consolidated Subsidiaries Net Income 96,537 Per Share of Common Stock Net Income -Basic See accompanying notes to consolidated financial statements. ¥ 70.43 ¥ 56.98...

  • Page 25
    ...,199 $ 491,200 $ 4,503,428 $ (16,684) $ 3,092 (990) $ 224,567 75,304 (174,931) 423,325 823 Net changes on items other than shareholders' equity Balance at March 31, 2014 $ 394,917 (6,579) $ 117,523 $ 754,229 $ (174,931) $1,317,272 See accompanying notes to consolidated financial statements. 23

  • Page 26
    ...minority shareholders Repayment of lease obligations Proceeds from sales of treasury shares 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...

  • Page 27
    ... financial statements of Isuzu Motors Limited ("the Company") and consolidated subsidiaries are prepared on the basis of accounting principles generally accepted in Japan, which are different in certain respects as to application and disclosure requirement of International Financial Reporting...

  • Page 28
    ... to financial reporting and international trends. (2) Scheduled date of adoption The revised accounting standard and guidance were adopted as of the end of the fiscal year ended March 31, 2014. However, revisions to the calculation method for the retirement benefit obligation and service costs...

  • Page 29
    ...benefit corporate pension plan, and the multi-employer welfare pension fund plan. Among the above-mentioned plans, those, for which it is possible to figure out, in a rational manner, the amount of the pension assets which corresponds to the amount of the contributions 2014 2013 2014 Loans Lease...

  • Page 30
    ... on consolidated balance sheet as of March 31, 2014 Millions of yen Thousands of U.S. dollars Cash and deposits Life insurance company general accounts Other assets Total 2014 2014 In order to determine the expected long-term rate of return on assets, were considered the current and expected...

  • Page 31
    ...multi-employer pension plan 11.2% 6. Income Taxes Accrued income taxes in the balance sheets include corporation tax, inhabitant tax and enterprise tax. The significant components of the Company and its consolidated subsidiaries' deferred tax assets and liabilities as of March 31, 2014 and 2013 are...

  • Page 32
    ... due to convertible stocks converted Balance at end of the year Guarantees of bank loans ¥ 2014 2013 2014 697 ¥ 1,128 $ 6,776 Other contingencies 2014 2013 Isuzu Motors Co., (Thailand) Ltd., a subsidiary of the Company in Thailand engaged in production and distribution of vehicles...

  • Page 33
    ... payments to be received Estimated unguaranteed residual value of leased assets Amounts equivalent to interest income Net investment in direct finance leases ¥ 18,573 1,821 (1,868) 18,526 $ 180,467 17,697 (18,155) 180,008 2014 2013 2014 Acquisition costs Accumulated depreciation Net balance...

  • Page 34
    ... accounting method Buy Japanese yen Sell U.S. dollar Australian dollar Foreign exchange forward contracts Sell U.S. dollar Australian dollar Total 4,457 11,306 3,858 - - - (14) 6 (86) 43,308 109,855 37,486 - - - (138) 65 (844) Foreign exchange forward contracts under the designated hedge...

  • Page 35
    ... current period change, before income taxes Income taxes on net current period change Net unrealized loss from hedging instruments ¥ ¥ 668 (374) 294 23 318 $ $ 6,496 (3,637) 2,859 233 3,092 ¥ 370 As a general rule, assets were grouped into business assets, idle assets and assets for rent. Idle...

  • Page 36
    ... Ltd. TDF Corporation Description of their businesses: Manufacture of automobile parts and others 4. Share exchange ratio, method of calculating the ratio, and number of shares issued (1) Share exchange ratio 1) For one share of common stock of I Metal Technology, 0.34 share of common stock of IJT...

  • Page 37
    ...Thailand Other Total 4,563,189 676,461 325,832 5,565,483 (Note) Net sales are geographically classified by country or region in which customers are located. c) Information by each major customer Millions of yen Name of customers Net sales Tri Petch Isuzu Sales Co., Ltd. ITOCHU Corporation...

  • Page 38
    Report of Independent Auditors 36 I s u z u M o t o r s L i m i t e d â- A n n u a l R e p o r t 2014

  • Page 39
    .... 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, Philippines Tel: 63-49-541-1458 Middle East Isuzu Motors Middle East FZE S3A2SR10 Jebel Ali Free Zone P.O.BOX...

  • Page 40
    ...sells all its Isuzu shares to Mitsubishi Corporation, ITOCHU Corporation, and Mizuho Corporate Bank, Ltd. November April 2008 2013 Isuzu Motors America LLC (ISZA-LLC) is established and subsequently absorbs ISZA. Isuzu established new auto-lease company: Isuzu Leasing Services Ltd. (ILS) in Japan...

  • 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, ...

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