FY2004 FINANCIAL RESULTS Forward Ultra -Low PM, 4-Star ISUZU MOTORS LIMITED May 20, 2004 1 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
President & Representative Director Yoshinori Ida 2 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
1. FY2004 Highlights Apr. 03 - Mar. 04 3 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
New 3-year 3 Business Plan: Key Points Eliminate Uncertainties Recapitalization NA SUV Business Restructuring Establish PT JV with GM Workforce rightsizing (VER) Integrate mfg. infrastructure Debt-for-equity conversion Capital stock reduction/increase (Cancellation of GM stockholding without consideration) Transformation of of business structure into CV Specialist by Positioning DE as Core Technology Support from GM and financial institutions 4 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
FY2004 Highlights: Consolidated Results - Renewed record profits across the board - FY2004 Act. Sales revenue: 1,430.3 1,250.0 (+14%) Operating profit: 84.5 50.0 (+69%) OP % 5.91% Working profit: 81.7 - WP % 5.71% Net income: 54.7 35.0 (+56%) Net income % 3.82% Sales Vol: Japan (k. units) 103 (+ 66.5%) Worldwide sales: (k. units) 177 (- 17.9%) N3BP Target (changes) 5 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
Consolidated Revenue by Segment (JPY :Bil.) 1,800.0 1,600.0 1,400.0 1,200.0 1,000.0 800.0 600.0 400.0 200.0 0.0 SUV, CV, PT, Other (KD, parts, financing) 1,506.6 1,569.2 1,597.7 1,349.4 1,430.3 562.3 576.4 597.1 319.2 371.3 Other 124.9 161.5 391.7 225.6 352.4 PT 391.9 438.2 405.2 438.4 609.7 427.5 393.1 369.8 187.3 CV SUV 109.7 '00/3 '01/3 '02/3 '03/3 '04/3 6 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
(JPY :Bil.) 1,800.0 1,600.0 1,400.0 1,200.0 1,000.0 800.0 600.0 400.0 200.0 1,506.6 Consolidated Revenue by Region Taking advantage of globalization initiative 263.6 118.4 553.2 611.3 571.4 587.2 1,569.2 1,597.7 248.5 261.0 122.2 127.5 705.3 1,349.4 287.3 210.7 377.5 503.9 473.9 1,430.3 215.1 Other 336.2 Asia 251.6 U.S. 627.4 Japan 0.0 '00/3 '01/3 '02/3 '03/3 '04/3 7 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
(JPY :Bil.) 10 Consolidated Dealers & 5 Suppliers in Japan: Improved operating performance of Isuzu-Group companies 8 7.5 7.2 6 4 2 0 '00/3 '01/3 0.4 '02/3 0.9 3.5 '03/3 3.1 Consolidated Dealers in Japan 5 Suppliers in Japan '04/3 2 1.6 4 6 5.6 4.9 8 10 8.9 Note: 5 suppliers in Japan: TDF, JBK, JIK, Castec, Shonan Unitech 8 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
100.0 (JPY:Bil.) Financial Performance: Trend - Undertaken one-time charges to realize fundamental reform - 84.5 81.7 50.0 9.2 6.2 15.1 15.5 Operating Profit Working Profit 54.7 Net Income 0.0 (5.8) (2.0) (4.2) (50.0) (50.8) (27.3) (47.4) (43.0) (68.0) (66.8) (100.0) (104.2) (150.0) (144.3) FY99 FY00 FY01 FY02 FY03 FY04 9 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
Operating Margin : Historical Trend - Robust profit improvement - (JPY:Bil.) (%) 100 10 80 84.5 7.5 8 60 Parent 5.9 6 40 20 0 37.7 3.3 2.2 FY96 2.8 24.7 1.8 1.3 11.7 9.2 0.7 0.5 0.6 FY97 FY98 FY99 FY00 FY01 (0.4) Consolidated 15.1 1.1 1.7 15.5 1.1 0.9 Operating Profit FY02 FY03 FY04 4 2 0 20 40 (3.4) (1.7) (27.3) 2 4 60 (50.8) (5.6) 6 80 8 10 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
273.0 Net Worth Improvement - Consolidated and parent net worth - (JPY: Bil) (%) 300.0 30 250.0 200.0 150.0 169.3 24.4 217.8 21.1 Parent Net Worth % 18.1 159.1 18.8 151.7 25 20 15 100.0 50.0 0.0 9.2 94.1 5.0 Consolidated Net Worth % 61.1 4.6 26.4 2.6 109.8 11 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved 11.5 82.7 10.2 Concl. Net Worth '00/3 '01/3 '02/3 '03/3 '04/3 Parent Net Worth 10 5 0
New 3-year 3 BP: Actual vs. Target - Achieved targets - (JPY:Bil.) FY03 FY04 FY05 Sales Revenue 1,270.0 1,250.0 1,270.0 Act: 1,349.4 Act: 1,430.3 Operating Profit 5.0 50.0 60.0 or, Over Act: 15.5 Act: 84.5 Net Income (170.0) 35.0 50.0 or, Over Act: 144.3 Act: 54.7 Outstanding debt 560.0 510.0 450.0 Act: 517.9 Act: 452.7 12 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
Executive Vice President & CFO Shigeki Toma 13 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
2. Business Environment 14 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
Japan Industry Sales and Isuzu Share - HD, 2- to 3-ton Truck - (Units) (Share) 160,000 140,000 120,000 100,000 80,000 60,000 40,000 20,000 34.9% 33.7% 106,152 25.1% 24.9% 98,330 2-3ton H/D&M/D 23.8% 76,794 79,987 78,168 31.8% 93,167 33.9% 24.0% 95,325 78,601 36.1% 147,106 117,143 24.9% H/Dand M/D 2-3ton 40% 35% 30% 25% 20% 15% 10% 5% 0 FY00 FY01 FY02 FY03 FY04 0% 15 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
(Units:K) 700 600 500 400 300 200 100 0 571 251 31% 320 589 261 31% 328 Thailand Industry Sales - Total market, pickup segment, and Isuzu Share- 38% 363 243 120 36% 144 40% Isuzu pickup share 63 81 218 97 121 CY95 CY96 CY97 CY98 CY99 CY00 CY01 CY02 CY03 36% 262 116 146 40% Brand new D-MAX Pickup launched 297 133 164 37% 410 176 234 40% 533 224 Pickup P/Cetc. 309 (Share) 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 16 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
3. FY2004 Financial Summary 17 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
FY2004 Consolidated Results - Year-on-Year - Consolidated (JPY:Bil.) FY04 FY03 Changes Consl vs. Parent Ratio Sales Revenue 1,430.3 1,349.4 +80.9 1.61 Operating Profit 84.5 15.5 +69.0 1.26 Working Profit 81.7 (4.2) +85.9 1.42 Net Income 54.7 (144.3) +199.0 1.41 Parent (JPY:Bil.) FY04 FY03 Changes Sales Revenue 890.3 760.6 +129.7 Operating Profit 67.0 13.1 + 53.9 Working Profit 57.6 4.9 + 52.7 Net Income 38.9 (189.4) +228.3 18 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
FY2004 Consolidated Results - Sales Revenue by Segment (YOY) - (JPY:Bil.) FY04 FY03 Changes Sales Revenue 1,430.3 1,349.4 +80.9 Operating Profit 84.5 15.5 + 69.0 Working Profit 81.7 (4.2) + 85.9 Net Income 54.7 (144.3) +199.0 Sales Revenue by Segment FY04 FY03 Changes Parent 890.3 760.6 +129.7 Japanese DLRs 471.2 352.2 +119.0 North America 235.5 281.5 (46.0) ISPOL, DMAX - 148.1 (148.1) ASEAN 233.3 123.8 +109.5 Other 185.6 184.4 +1.2 Adjust. (585.6) (501.2) (84.4) Total 1,430.3 1,349.4 +80.9 19 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
FY2004 Consolidated Results - Operating Profit by Segment (YOY) - (JPY:Bil.) FY04 FY03 Changes Sales Revenue 1,430.3 1,349.4 +80.9 Operating Profit 84.5 15.5 + 69.0 Working Profit 81.7 (4.2) + 85.9 Net Income 54.7 (144.3) +199.0 Operating Profit by Segment FY04 FY03 Changes Parent 67.0 13.1 +53.9 Japanese DLRs 7.5 3.5 +4.0 North America (1.4) (24.0) +22.6 ISPOL, DMAX - 7.8 (7.8) ASEAN 7.2 2.7 +4.5 Other 5.8 2.9 +2.9 Adjust. (1.6) 9.5 (11.1) Total 84.5 15.5 +69.0 20 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
FY2004 Parent Results - Operating Profit Variance (YOY) - (JPY:Bil.) FY04 FY03 Changes Operating Profit 67.0 13.1 + 53.9 Variance due to: Favorable Vol. Mix +40.9 Rationalization +20.8 Expense reduction +14.6 Total favorable +76.3 Unfavorable Incrs. in expense (9.0) FX (2.7) GM alliance (10.7) Total unfavorable (22.4) Total +53.9 21 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
FY2004 Consolidated Results - Working Profit/Net Income variance (YOY) - (JPY:Bil.) FY04 FY03 Changes Sales Revenue 1,430.3 1,349.4 +80.9 Operating Profit 84.5 15.5 + 69.0 Working Profit 81.7 (4.2) + 85.9 Net Income 54.7 (144.3) +199.0 Operating Profit Working Profit Changes in Operating Profit +69.0 Favorable On-equity gain +11.1 Financial income +5.8 Total Changes in OP +85.9 Changes in Working Profit +85.9 Favorable Restructuring charges; prev term +140.1 Gain on sale of stockholding +5.5 Unfavorable NA restructuring charges (7.8) Fixed assets disposal, etc. (16.4) Other (8.3) Total Changes in WP +199.0 22 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
Outstanding Debt (Consolidated) (JPY:Bil.) 1,200.0 1,000.0 800.0 600.0 400.0 983.3 1,068.2 738.7 517.9 452.7 200.0 0.0 FY00 FY01 FY02 FY03 FY04 23 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
Equity Capital Improvement - Total Shareholders Equity : Consolidated - (JPY:Bil.) 200.0 (EPS in JPY) 150 180.0 160.0 134.05 169.3 EPS 100 73.84 140.0 120.0 100.0 94.1 47.83 109.8 11.12 50 0 80.0 60.0 40.0 20.0 0.0 61.1 98.64 26.4 Shareholder's equity FY00 FY01 FY02 FY03 FY04-50 -100-150 24 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
(JPY:Bil.) 250.0 200.0 150.0 100.0 1.7 206.8 115.6 Other 91.2 Inventory Balance - Consolidated - 1.6 202.0 130.7 1.2 156.3 98.7 Inventory turnover month 1.0 1.0 109.0 59.5 112.9 55.6 (Months) 1.8 1.6 1.4 1.2 1.0 0.8 0.6 50.0 - Parent 0.4 71.3 57.6 49.5 57.3 0.2 - FY00 FY01 FY02 FY03 FY04 25 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
(JPY:Bil.) 250.0 200.0 150.0 220.0 23.5% Improved Earnings Foundation - Fixed cost to total revenue - 229.0 85.1 95.5 27.4% 207.9 25.1% 87.3 25.2% 192.1 80.6 22.4% 170.6 74.7 163.3 18.3% 78.9 (%) 30% 25% 20% 15% 100.0 50.0 0.0 134.9 133.5 120.6 111.5 26 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved 95.9 Head Office 84.4 FY99 FY00 FY01 FY02 FY03 FY04 Manufacturing 10% 5% 0%
4. FY2005 Forecast 27 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
Apr. 03 Regulation Impact on Japan Industry Sales - HD Sales in Japan: Conceptual Image - Tokyo Gov t t Ordinance Oct. 03 Apr. 04 Oct. 04 Apr. 05 FY04 FY05 Truck purchase driven by Tokyo Gov t t Ordinance Actual NOx/PM compliance Base demand 28 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
Japan Industry Sales - HD, 2- to 3-ton Truck - (Units) 160,000 147,106 140,000 120,000 117,143 112,500 100,000 98,330 106,152 93,167 95,325 89,000 80,000 60,000 40,000 20,000 76,794 79,987 78,168 78,601 H/D and M/D 2-3 ton 0 FY00 FY01 FY02 FY03 FY04 FY05 (Fcst.) 29 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
FY2005 Consolidated Forecast - Year-on-Year - Consolidated (JPY:Bil.) FY05 FY04 Changes N3BP Changes Sales Revenue 1,350.0 1,430.3 (80.3) 127.0 +80.0 Operating Profit 70.0 84.5 (14.5) 6.0 +10.0 Working Profit 65.0 81.7 (16.7) - - Net Income 50.0 54.7 (4.7) 5.0 ±0.0 Parent (JPY:Bil.) FY05 FY04 Changes N3BP Changes Sales Revenue 770.0 890.3 (120.3) 70.0 +70.0 Operating Profit 50.0 67.0 (17.0) 5.0 ±0.0 Working Profit 45.0 57.6 (12.6) - - Net Income 40.0 38.9 +1.1 4.0 ±0.0 FX assumption: JPY 105/$ for FY06 30 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
Actual Results + Fcst vs. New 3-year 3 BP - Consolidated Operating Profit - (JPY:Bil.) 90.0 84.5 80.0 70.0 70.0 60.0 60.0 50.0 50.0 40.0 30.0 20.0 10.0 5.0 15.5 New 3-year Business Plan Actual / Fcst. 0.0 FY03 FY04 FY05 (Fcst) 31 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
FY2005 Consolidated Forecast - Sales Revenue by Segment - (JPY:Bil.) FY05 FY04 Changes Sales Revenue 1,350.0 1,430.3 (80.3) Operating Profit 70.0 84.5 (14.5) Working Profit 65.0 81.7 (16.7) Net Income 50.0 54.7 (4.7) Sales Revenue by Segment FY05 FY04 Changes Parent 770.0 890.3 (120.3) Japanese DLRs 370.0 471.2 (101.2) North America 230.0 235.5 (5.5) ASEAN 300.0 233.3 +66.7 Other 150.0 185.6 (35.6) Adjust. (470.0) (585.6) +115.6 Total 1,350.0 1,430.3 (80.3) 32 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
FY2005 Consolidated Forecast - Operating Profit by Segment - (JPY:Bil.) FY05 FY04 Changes Sales Revenue 1,350.0 1,430.3 (80.3) Operating Profit 70.0 84.5 (14.5) Working Profit 65.0 81.7 (16.7) Net Income 50.0 54.7 (4.7) Operating Profit by Segment FY05 FY04 Changes Parent 50.0 67.0 (17.0) Japanese DLRs 7.0 7.5 (0.5) North America 1.0 (1.4) +2.4 ASEAN 12.0 7.2 +4.8 Other 3.0 5.8 (2.8) Adjust. (3.0) (1.6) (1.4) Total 70.0 84.5 (14.5) 33 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
FY2005 Parent Forecast - Operating Profit Variance (YOY) - (JPY:Bil.) FY05 FY04 Changes Working Profit 50.0 67.0 (17.0) Variance due to: Favorable Rationalization +7.4 Expense reduction +15.4 Total favorable +22.8 Unfavorable Vol/mix (29.9) FX (3.1) Incrs. in expense (6.8) Total unfavorable (39.8) Total (17.0) 34 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
FY2005 Consolidated Forecast - Working Profit/Net Income Variance (YOY) - (JPY:Bil.) FY05 FY04 Changes Sales Revenue 1,350.0 1,430.3 (80.3) Operating Profit 70.0 84.5 (14.5) Working Profit 65.0 81.7 (16.7) Net Income 50.0 54.7 (4.7) Operating Profit Working Profit Operating Profit changes (14.5) Favorable Financial income, ect. +2.0 Unfavorable On-eauity income (4.2) Total changes in OP (16.7) Working Profit changes (16.7) Favorable NA restructuring charges +7.8 Fixed assets disposal, etc. +3.1 Other +3.7 Unfavorable Sale of stockholdings (2.6) Total changes in WP (4.7) 35 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
New 3-year 3 Business Plan Targets - Consolidated - (JPY:Bil.) FY03 FY04 FY05 Sales Revenue 1,270.0 1,250.0 1,270.0 Act: 1,349.4 Act: 1,430.3 Fcst: 1,350.0 Operating Profit 5.0 50.0 60.0 or, Over Act: 15.5 Act: 84.5 Fcst: 70.0 Net Income (170.0) 35.0 50.0 or, Over Act: 144.3 Act: 54.7 Fcst: 50.0 Outstanding debt 560.0 510.0 450.0 Act: 517.9 Act: 452.7 Fcst: 420.0 36 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved
37 Copyright(C) 2004 Isuzu Motors Ltd. All rights reserved