FY2005 FINANCIAL RESULTS...FY2005 Consolidated Results - Working Profit/Net Income Variance (YOY) -...

1 Copyright(C) 200５ Isuzu Motors Ltd. All rights reserved

FY2005 FINANCIAL RESULTSFY2005 FINANCIAL RESULTS

Isuzu Motors LimitedMay 23, 2005

ELFELF--HybridHybrid


President & Representative Director

Yoshinori Ida


Ⅰ. 　　FY2005 HighlightsApr.’04-Mar.’05


FY2005 Highlights: Consolidated Results

Sales Revenue:： 1.493.6 [+ 4%] 1.430.3

Operating profit: 87.2 [+ 3%] 84.5[OP %：　5.8%]

Working profit： 91.6 [+12%] 81.7[WP %：　6.1%]

Net income 60.0 [+10%] 54.7[Net income %： 4.0%]

Dividend：　　　　　　　　　　1.5 yen/share [For FY2005]

Sales Vol: Japan (k. units)： 90 [（13%)]Worldwide sales (k. units) 249 [+ 41%]

[FY2005 Act.（Year-on-Year） ] [FY2004](JPY:Bil.)


Major Challenges and Actions Takenin New 3-year Business Plan

Eliminate uncertainties

Eliminate uncertainties

Recapital-ization

Recapital-ization

Establish PT JV with GM

Workforce rightsizing (VER)

GM invested in an engine mfg.subsidiaryGM invested in an engine mfg.subsidiary

Departures→approx. 4,200Labor cost effect→approx 20. 0billion

Departures→approx. 4,200Labor cost effect→approx 20. 0billion

Terminated SIA JV in Jan.’03 / end of production in Jul.’04OEM supply from GMStreamlined biz by merger of local entities

Terminated SIA JV in Jan.’03 / end of production in Jul.’04OEM supply from GMStreamlined biz by merger of local entities

NA SUV Business Restructuring

Capital stock reduction /increase (retirement of GM stockholding without consideration)

Retirement of GM stake in ISZ without considerationFresh capital increase of 10 billion

Retirement of GM stake in ISZ without considerationFresh capital increase of 10 billion

Integrate manufacturing infrastructure

Integrated veh. production line at Fujisawa plant in May’04Sold Kawasaki Plant

Integrated veh. production line at Fujisawa plant in May’04Sold Kawasaki Plant

Debt –for-equity conversion (DES) Executed DES worth JPY100 billionExecuted DES worth JPY100 billion

Major Challenges Action taken(effect)


New 3-year BP v.s. Actual

Sales Revenue（JPY:Bil.） Operating Profit（JPY :Bil.）

Operating profit ratio（％）

1.1

5.9 5.8

0.4

4.14.7

0123456

'03/3 '04/3 '05/3

Actual

Plan

1,270.01,349.41,220.0

1,430.31,270.0

1,493.6

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

1,600.0

'03/3 '04/3 '05/3

5.015.5

50.0

84.5

60.0

87.2

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

'03/3 '04/3 '05/3

PLA

N

AC

TU

AL

PLA

N

AC

TU

AL


Financial Measures and Their Effects

Preferred Stock

Preferred Stock

Reduction of outstanding debt

Reduction of outstanding debt

Mar.’01Mar.’01

JPY1,068.2 billionJPY1,068.2 billion

Mar.’05Mar.’05

JPY393.1 billion（plan：JPY450. bil.）JPY393.1 billion（plan：JPY450. bil.）

Sept.’02Sept.’02

JPY678.2 billionJPY678.2 billion(▲36%) (▲41%)

Secure fund in stable and robust manner through syndicated loans

Secure fund in stable and robust manner through syndicated loans

Long /short term loansLong /short term loans

37 banks　225 agreementsJPY240 billion

37 banks　225 agreementsJPY240 billion

LT（5・7yrs）loansLT（5・7yrs）loans

25 banks 2 agreementsJPY240 billion

25 banks 2 agreementsJPY240 billion

Commitment lineCommitment line

14 banks 1 agreementJPY62 billion

14 banks 1 agreementJPY62 billion

＋

（Excluding Convertible Bond）

Class-IClass-I

Face value Y30 bil.Poten. No. of shares550 mil.Conversion timingOct.2006

MC and Itochu acquired shares worth Y16bil.at face value

MC and Itochu acquired shares worth Y16bil.at face value

Stem inflow of common stocks

into market

Stem inflow of common stocks

into market

Class-IIClass-II

Isuzu retired the stock for Y60 bil.twice as much as the face value

Isuzu retired the stock for Y60 bil.twice as much as the face value

Face value Y30 bil.Poten. No. of shares 550M.Conversion timingOct.2008

Retirement ofpotential common

stocks

Retirement ofpotential common

stocks

（At peak）（ Before N3BP）


94.1 61.1 26.4109.8

158.5

1,068.2

738.7

517.9446.7 393.1

11.4 12.1 19.6

4.12.5

-1,200

-1,000

-800

-600

-400

-200

0

200

400

'01/3 '02/3 '03/3 '04/3 '05/3

-60

-50

-40

-30

-20

-10

0

10

20

Outstanding Debt and Equity Capital（consolidated）: Recent Trend

（JPY:Bil.）

* * Excluding CB

****

DER（DER）

Outstanding debt

Equity capital


Mid-term Business Plan(FY’06~FY’08)

‘06/3 ‘07/3 ‘08/3 ‘09/3～

次期中計

‘03/3 ‘04/3 ‘05/3‘02/3

新3ヵ年計画中期経営計画

‘01/3‘00/3期

連結営業利益推移(億円)

連結営業利益推移(億円)

500500

00

▲500▲500

1,0001,000

実績計画見込期待値

見込

‘07/3 ‘09/3～

Next biz plan

‘03/3 ‘04/3 ‘05/3‘02/3

New 3-year BP Mid-term Business Plan

‘01/3‘00/3

History of consolidatedoperating profit (Y100 million)

History of consolidatedoperating profit (Y100 million)

500500

00

▲500▲500

1,0001,000

Actual PlanForecast Expected

‘06/3 ‘08/3

Develop globally strategic productsReinforce business activities by market/product

Develop globally strategic productsReinforce business activities by market/product

Growth/expansionTaking steps for growth

Aggressive investment

【FY Mar.2008 BP】Consolidated sales：JPY1,600 billion

Consolidated OP：JPY100 billion


Key measures

Reinforce CV business in Japan• Expand share• CV No.1* in Japan　*2-3t and over

CV shareHD： 26⇒30%2-3t： 36⇒40%

Realign & reinforce CV sales body in overseas markets

• Revamp and enhance distribution functions

Maximize LCV operating income• Maximize sales VOL globally• Maximize operating efficiency

Mid-term Business Plan: Key Measures and Progress

CV sales volumeOverseas total150,000⇒300,000 units

ASEAN production volumeTotal LCV：200,000⇒300,000

Implementation Status

Development and introduction of strategic products

• Strategic vehicles• Strategic DE, both for global mkts

Quantitative targetsFY Mar.05 ⇒FY Mar. '08

* Numbers on drawing up basis

• LCV: Unify platform• DE: Shift to “super clean”DE

【Capacity increase for Thai pickup trucks】

【Mimamori-kun・CNG-MPI・Hybrid】

【China, Malaysia, Benelux,Iberia】

【MU-7・New4J-DE】

- Capital raise: Qingling Motors 20% on May 20- New JV Establishment: Malaysia on Jan. 11

Benelux on Jan. 19Iberia on Apr. 5


Director, Corporate Planning & Finance

Susumu Hosoi


Ⅱ.　 Business Environment


（Units）

99,584

117,143

78,601

78,16879,98776,794

109,000

127,000

98,330

106,152

93,16795,325

114,176

147,106

27.4%24.9%25.1%

23.8% 24.0% 24.9%

38.4%36.1%

33.9%

31.8%33.7%

34.9%

0

20,000

40,000

60,000

80,000

100,000

120,000

140,000

160,000

'00/3 '01/3 '02/3 '03/3 '04/3 '05/3 '06/3

0%

5%

10%

15%

20%

25%

30%

35%

40%HD and MD2-3ton

（Share）

2-3ton

H/D and M/D

（BP basis）

Japan Industry Sales and Isuzu Share- HD, MD, and 2- to 3-ton Truck -


320 328

12081

121 146 164234

309369

243

63

97116

133

176

224

257

261251

31% 31%

38%36%

40%

36%

40%

37%

40% 39%

0

100

200

300

400

500

600

700

'95 '96 '97 '98 '99 '00 '01 '02 '03 '04 '05

0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

PickupP/C etc.

571 589

363

144

218262

297

410

533

626 660

Isuzu Pickup Share

Brand new D-MAXPickup Launched

（Unit: 1000）（Share）

（BP basis）

Thailand Industry Sales－ Total market, pickup segment, and Isuzu share －


Ⅲ. 　FY2005 Financial Summary


Consolidated(JPY:Bil.) FY05 FY04 Changes Consl vs. Parent

Ratio

Sales Revenue 1,493.6 1,430.3 +63.3 1.7

Operating Profit 87.2 84.5 +2.7 1.4

Working Profit 91.6 81.7 +9.9 1.7

Net Income 60.0 54.7 +5.3 2.2

FY2005 Consolidated Results- Year-on-Year Comparison -

(JPY:Bil.) FY05 FY04 Changes

Sales Revenue 880.1 890.3 (10.2)Operating Profit 60.6 67.0 (6.4)Working Profit 53.9 57.6 (3.7)

Net Income 27.0 38.9 (11.9)

* Exchange rate: FY2005＝107JPY/$

【Parent】【Parent】


FY2005 Consolidated Results- Sales Revenue by Segment (YOY) -

(JPY: Bil.) FY05 FY04 Changes

Sales Revenue 1,493.6 1,430.3 +63.3Operating Profit 87.2 84.5 +2.7Working Profit 91.6 81.7 +9.9

Net Sales 60.0 54.7 +5.3

FY05 FY04 ChangesParent 880.1 890.3 (10.2)

Japanese DLRs 474.5 471.2 +3.3

North America 199.0 235.1 (36.1)

ASEAN 295.5 233.3 +62.2

Other 196.8 185.5 +11.3

Adjust. (552.3) (585.1) +32.8

Total 1,493.6 1,430.3 +633

Sales Revenue by Segment


FY2005 Consolidated Results- Operating Profit by Segment（YOY） -

(JPY: Bil.) FY05 FY04 ChangesSales Revenue 1,493.6 1,430.3 +63.3

Operating Profit 87.2 84.5 +2.7Working Profit 91.6 81.7 +9.9

Net Income 60.0 54.7 +5.3

FY05 FY04 ChangesParent 60.6 67.0 (6.4)

Japanese DLRs 6.0 7.5 (1.5)

North America (0.4) (1.4) +1.0

ASEAN 15.2 7.2 +8.0

Other 5.2 5.8 (0.6)

Adjust. 0.6 (1.6) +2.2

Total 87.2 84.5 +2.7

Operating Profit by Segment


FY2005 Parent Result- Operating Profit Variance (YOY) -

(JPY:Bil.) FY05 FY04 Changes

Operating Profit 60.6 67.0 (6.4)

Favorable ◆ Rationalization +9.0

◆ Expense reduction (Depreciation, general ex pense etc.) +4.7

Total favorable +13.7

Unfavorable ◆ Sales fluctuation/ Vol. Mix (3 .7)

◆ Expense increase (Economic change, sales/eng. ex pense) (14 .0)

◆ FX (2 .4)

Total unfavorable (20 .1)

Total (6 .4)

Variance due to:


FY2005 Consolidated Results- Working Profit/Net Income Variance (YOY) -

(JPY:Bil.) FY05 FY04 ChangesSales Revenue 1,493.6 1,430.3 +63.3

Operating Profit 87.2 84.5 +2.7

Working Profit 91.6 81.7 +9.9Net Income 60.0 54.7 +5.3

Changes in Operating Profit +2.7Favorable ◆ Equity method income (ISPOL/DMAX) +5.4

◆ Financial income etc. (FX, Debt reduction) +3.7

Total Changes +9.9

Changes in Working Profit ＋99Favorable ◆ Loss on consolidation/abolition of affiliated companies +2.3Unfavorable ◆ Gain on sales of stockholding +1.6

◆ Loss on disposal of fixed assets, etc. (8 .5)

Total Changes +5.3

Working Profit

Net Income


Ⅳ.　　 FY2006 Forecast


Isuzu Global Production Volume- Vehicle Production Vol.(Unit:1000) by Country/Product -

’04/3 ’05/3 ’’06/306/3

NANANA

’04/3 ’05/3 ’’06/306/3ThailandThailandThailand

’04/3 ’05/3 ’’06/306/3

IndonesiaIndonesia

’04/3 ’05/3 ’’06/306/3

ChinaChinaChina

SASASA

OtherOther

LCＶ

LCＶ

LCＶ

L/D

JapanJapanJapan’04/3 ’05/3 ’’06/306/3

H/D

L/D

LCＶ

231221

5454

142142

3535

5252

152152

1717

210210

4949

161161

L/DRＶ

4 4 52525 33

297 55

1212 1818 1717

2442 2525

151599

2727 25251515

174218

274274

’04/3 ’05/3 ’’06/306/3

LCV13 17 2020

’04/3 ’05/3 ’’06/306/3

L/D

LCＶ

4 7 62323

4949 565627

56 6262

'04/3 '05/3 '06/3Global Production 510 579 613

（Forecast）


Expense fluctuations reflecting business normalization and business environment（Consolidated operating profit: analysis of changes）

872

800

Operating profit for FY ’05

Exchange fluctuations

Ratio

nalizatio

n

＋160

Sales/Model Mix

▲132

R&D expenses

Economics

＋70▲150

▲24

Operating profit for FY ‘06 （forecast）

Others

▲58

＋52Thai operations integrated as a consolidated com

pany


(JPY:Bil.) FY06 FY05 Changes Consol vs.parent ratio

Sales revenue 1,540.0 1,493.6 +46.4 1.8

Operating profit 80.0 87.2 (7.2) 1.6

Working profit 75.0 91.6 (16.6) 1.4

Net income 50.0 60.0 (10.0) 1.3

( 億円 ) FY06 FY05 Changes

Sales revenue 860.0 880.1 ▲ 20.1Operating profit 50.0 60.6 ▲ 10.6Working profit 55.0 53.9 +1.1

Net income 40.0 27.0 +13.0

【Parent】【Parent】

FY2006 Consolidated Forecast - Year-on-Year -

※　FX assumption:JPY100/$ for FY06


FY2006 Consolidated Forecast-Sales Revenues by Segment -

(JYP:Bil) FY06 FY05 Changes

Sales revenues 1,540.0 1,493.6 +46.4Operating profit 80.0 87.2 (7.2)

Working profit 75.0 91.6 (16.6)

Net income 50.0 60.0 (10.0)

FY06 FY05 Changes

Parent 860.0 880.1 (20.1)

Japanese DLRs 540.0 474.5 +65.5

North America 150.0 199.0 (49.0)

ASEAN 390.0 295.5 +94.5

Others 180.0 196.8 (16.8)

Ajust. (580.0) (552.3) (27.7)

Total 1,540.0 1,493.6 +46.4

Sales revenues by Segment


FY2006 Consolidated Forecast-Operating profit by Segment (YOY) -

(JPY:Bil) FY06 FY05 Changes

Sales revenues 1,540.0 1,493.0 +46.4

Operating profit 80.0 87.2 (7.2)Working profit 75.0 91.6 (16.6)

Net income 50.0 60.0 (10.0)

FY06 FY05 Changes

Parent 50.0 60.6 (10.6)

Japanese DLRs 6.0 6.0 0.0

North America 5.0 (0.4) +5.4

ASEAN 17.0 15.2 +1.8

Others 4.0 5.2 (1.2)

Adjust. (2.0) 0.6 (2.6)

Total 80.0 87.2 (7.2)

Operating profit by Segment


’FY2006 Consolidated Forecast- Working profit/net income variance (Y-O-Y)

(JPY:Bil) FY06 FY05 Changes

Sales Revenue 1,540.0 1,493.6 +46.4

Operating profit 80.0 87.2 (7.2)

Working profit 75.0 91.6 (16.6)Net income 50.0 60.0 (10.0)

Operating Profit Changes (7.2)Favorable ◆ On-equity income (8.9)

◆ Financial income, etc. (FX) (0.5)Total Changes (16.6)

Working profit changes (16.6)Favorable ◆ Loss from disposal of fixed assets, etc.: +10.4

◆ Loss from resturcturing of affiliated companies +1.5

Unfavorable ◆ Gain on sales of stockholding (5 .3)

Total Changes (10.0)

Workin

g

pro

fitNet in

com

e


【Appendix】

Major Business Index


438.2

592.8

352.4391.7

576.4 597.1371.3

319.2

170.7109.7

187.3369.8393.1

609.7438.4

405.2

350.2161.5 225.6

379.9

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

'01/3 '02/3 '03/3 '04/3 '05/3

1569.2 1597.7

1349.41430.3

Others

PT

CV

SUV/LCV

1493.6

Consolidated Revenue by SegmentSUV/LCV, CV, PT, Other(KD, parts)

(JPY:Bil.)


587.2 503.9 473.9627.4

611.3 705.3

377.5251.6

248.5 261.0

287.3215.1

625.4

214.0

122.2 127.5

210.7336.2 374.2

280.0

0

200

400

600

800

1,000

1,200

1,400

1,600

1,800

'01/3 '02/3 '03/3 '04/3 '05/3

1569.2 1597.7

1349.41430.3

Japan

North America

Asia

Others

1493.6

(JPY:Bil.)

Consolidated Revenue by Region


Consolidated Dealerships/5 Suppliers in Japan:Improved operating performance of Isuzu-Group companies

0.4

(5.6)(4.9)

3.5

7.5

6.06.9

0.9

3.1

7.2

(8)

(6)

(4)

(2)

0

2

4

6

8

10

'00/3 '01/3

'02/3 '03/3 '04/3

Consolidated DLRs

Major 5 suppliers

（JPY:Bil.）

Note: Big 5 suppliers in JapanNote: Big 5 suppliers in Japan：： TDFTDF、、JBK, JIK, JBK, JIK, CastecCastec, and , and Shonan UnitechShonan Unitech


Operating Profit Ratio Trend

84.5

(27.3)

15.1 15.5

87.2

5.8

(1.7)

0.9 1.1

5.9

(0.4)

1.1

1.7

7.56.9

(40)

(20)

0

20

40

60

80

100

(4)

(2)

0

2

4

6

8

10Operating

profitParentParent

ConsolidatedConsolidated

’02/3 ’03/3 ’04/3

’01/3

（JPY:Bil.） (%)

’05/3


Equity Capital Improvement

94.1

61.1

26.4

109.8

158.4169.3

217.8

159.1

82.7

151.7

13.9

10.2

2.6

4.65.0

20.8

18.8

11.5

18.1

21.1

0

50

100

150

200

250

'01/3 '02/3 '03/3 '04/3 '05/3

0

5

10

15

20

25Consolidatede quity capital

Parent equitycapital

(JPY:Bil.) (%)

Consolidated equity capital

Parent equity capital


Inventory Balance- Consolidated for full-term -

57.6 49.5 57.3 63.0

98.7

59.555.6

61.5

69.4

132.6

1.6

1.2

1.0 1.0 1.0

0

50

100

150

200

250

'01/3 '02/3 '03/3 '04/3 '05/3

-

0.2

0.4

0.6

0.8

1.0

1.2

1.4

1.6

Oth

ers

Parents

202.0

156.3

109.0

124.5112.9

(JPY:Bil.) （Months）

Month turnoverMonth turnover


Improved Earnings Foundation- Fixed cost-to-total revenue (parent） -

120.6 111.595.9

84.4

87.380.6

74.778.9

83.0

78.9

18.4%18.3%

22.4%

25.2%25.1%

0.0

50.0

100.0

150.0

200.0

250.0

'01/3 '02/3 '03/3 '04/3 '05/3

0%

5%

10%

15%

20%

25%

30%

229.0

2,079192.1

170.6163.3

Head Officefixed cost

Mfg. Fixedcost

161.9

(JPY:Bil.)（Fixed ratio）

FY2005 FINANCIAL RESULTS...FY2005 Consolidated Results - Working Profit/Net Income Variance (YOY) -...

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