fy2005 financial results...fy2005 consolidated results - working profit/net income variance (yoy) -...
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1 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
FY2005 FINANCIAL RESULTSFY2005 FINANCIAL RESULTS
Isuzu Motors LimitedMay 23, 2005
ELFELF--HybridHybrid
2 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
President & Representative Director
Yoshinori Ida
3 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
Ⅰ. FY2005 HighlightsApr.’04-Mar.’05
4 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
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.)
5 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
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)
6 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
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
7 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
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)
8 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
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
9 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
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
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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
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Director, Corporate Planning & Finance
Susumu Hosoi
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Ⅱ. Business Environment
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(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 -
14 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
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 -
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Ⅲ. FY2005 Financial Summary
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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】
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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
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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
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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:
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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
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Ⅳ. FY2006 Forecast
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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)
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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
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(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
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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
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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
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’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
28 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
29 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
【Appendix】
Major Business Index
30 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
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.)
31 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
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
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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
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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
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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
35 Copyright(C) 2005 Isuzu Motors Ltd. All rights reserved
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
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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)