fy2013 h1 financial results...fy2013 h1 financial summary 3. fy2013 full-year outlook Ⅲ． q&a...

1 Copyright(C) 2012 Isuzu Motors Limited All rights reserved

FY2013 H1 Financial ResultsFY2013 H1 Financial Results

November 7, 2012November 7, 2012


Ⅰ． President and Representative Director : Susumu Hosoi

:FY2013 H1 Financial Summary Outline:Progress of Mid-term Business Strategy( April 2011-March 2014)

Ⅱ． Director ： Toshio Sasaki 1. Business Status2. FY2013 H1 Financial Summary3. FY2013 Full-year Outlook

Ⅲ． Q&A Session

ContentsContents

Statements contained in this presentation, except for historical or current facts, are based on certain assumptions and our management's judgment in light of currently available information. Therefore, these statements may be susceptible to various factors, such as uncertainty contained in the assumptions and management's judgment and economic changes in the future, which may cause to bring about different results in Isuzu's future earnings and operating results.

Moreover, this presentation is not intended to solicit investment in Isuzu. Isuzu assumes no responsibility for any losses and liabilities that may be incurred because of the information in this presentation.


President and Representative Director

Susumu Hosoi


( JPY Bil. ) FY13 H1 F12 H1 Changes FY13 H1plan

Net Sales 780.1 658.1 122.0 790.0

Operating Income 57.3 43.8 13.5 50.0

Ordinary Income 60.4 45.1 15.3 52.0

Net Income 42.1 33.7 8.4 35.0

FY2013 H1 Consolidated ResultsFY2013 H1 Consolidated Results-- YearYear--onon--year Comparison year Comparison --

* FX: FY13 H1 = 80JPY/US$FY12 H1= 81JPY/US$


FY2013 FullFY2013 Full--year Outlookyear Outlook-- YearYear--onon--year Comparisonyear Comparison --

FY12 FY13 Previousplan

Net Sales 1,630.0 1,400.1 229.9 1,630.0


Ordinary Income 133.0 102.9 30.1 127.0

Net Income 91.0 91.3 -0.3 81.0

ChangesFY13 Forecast(JPY Bil)

※FX: FY13 = 80JPY/US$FY12 = 79JPY/US$


Progress of Mid-term Business Plan

(April 2011 April 2011 –– March 2014March 2014)


MidMid--term Business Plan Outlineterm Business Plan Outline

[ Japan ]CV foothold for advanced market

[ Indonesia ]CV foothold foremerging market

Low-cost parts/engineering

function sharing

[ Thailand ]LCV foothold

Low-cost parts/base market expansion

Europe, Europe, CISCIS

Middle Middle EastEast

Africa Africa

North North America America

Central and Central and South AmericaSouth America

AustraliaAustralia

Stabilize Japan Stabilize Japan domestic businessdomestic business

Strength/Expand Strength/Expand LCV business LCV business

Enhance ASEAN Enhance ASEAN CV Business CV Business

Secure stable Secure stable position in emerging/position in emerging/

advanced marketsadvanced marketsEstablish support Establish support operationsoperations

Secure stable position Secure stable position in emerging/in emerging/

advanced marketsadvanced markets

Stabilizing Isuzu’s commercial vehicle business

[China (Qingling)]CV support operations

[India, China (Jiangling)]

LCV support operations


Gateway new plant Commencement ceremony (2012 October)

Strength/Expand LCV Strength/Expand LCV BBusiness usiness -- Thailand Thailand --

Introduce a new LCV model OctoberOctober 2011 : Started the sale of the fully redesigned pick2011 : Started the sale of the fully redesigned pick--up truck in the up truck in the

TThai market.hai market. Introduce derivatives.

Establish an export company (IMIT) and strengthen global sales. 2012 : Started export of the new 2012 : Started export of the new pickpick--up truckup truck for thefor the EuropeEuropeaan and n and

AustralianAustralian markets.markets. Introduce the new pickup model to more markets and develop new markets.

OctoberOctober 2012012 2 : : Launched the new plant Launched the new plant in in Gateway and Gateway and increasedincreased a production a production capacity capacity toto 400,000 units of the 400,000 units of the pickpick--up truck.up truck.

Establish further self-sustained engineering functions in Thailand.


Thailand Philippine Indonesia Malaysia Vietnam Share

Develop and introduce optimal products for emerging markets. Started sales of F Series in Indonesia and of the truck fit for emerging market (“QCD Started sales of F Series in Indonesia and of the truck fit for emerging market (“QCD

Vehicle”) in Vietnam.Vehicle”) in Vietnam. Strengthen manufacturing functions using Indonesia foothold as a core.

Localized engineering functions and reinforced local workface (2012 April).Localized engineering functions and reinforced local workface (2012 April). SecuredSecured a site for the new plant.a site for the new plant. Expand parts localization (in progress with Isuzu affiliates)Expand parts localization (in progress with Isuzu affiliates) Consolidate a local manufacturing company.

Strengthen the sales network (parts supply system and service network establishment). Launched a new mechanic school in Indonesia (in the local joint venture).Launched a new mechanic school in Indonesia (in the local joint venture).

(thousand units)

[CV total]

Enhance ASEAN CV BusinessEnhance ASEAN CV Business

0

10

20

30

40

50

'09 '10 '11 '1210%

15%

20%

25%


August August 2012 : Introduced the HD route bus ERGA HYBRID.2012 : Introduced the HD route bus ERGA HYBRID. Strengthen cost competitiveness by streamlining sales/manufacturing.

Integrated dealers to cover extensive areas (consolidation: 15 Integrated dealers to cover extensive areas (consolidation: 15 6 companies, 6 companies, Isuzu Motors Tohoku Limited in Isuzu Motors Tohoku Limited in 2012 April).2012 April).

Converged administrative work between the distributer and dealers (Vehicle Converged administrative work between the distributer and dealers (Vehicle operation center function in 2012 October).operation center function in 2012 October).

Increase core module manufacturing and establish flexible production lines (mutual complementation of HD and LD lines).

Enhance the life cycle business. Started expansion of life cycle business.Started expansion of life cycle business.

H/D route busERGA HYBRIDIsuzu Motors Tohoku Limited,

head office

Stabilize Japan Stabilize Japan DDomestic omestic BBusinessusiness


Iintroduce heavy-duty truck/engine (CV full line-up ) and strengthen global HD competitiveness. AugustAugust 2012 : Launched Isuzu Qingling (Chongqing) Engineering Co. , Ltd.: 2012 : Launched Isuzu Qingling (Chongqing) Engineering Co. , Ltd.:

Joint development for nextJoint development for next--generation HDgeneration HD AugustAugust 2012 : Isuzu Qingling (Chongqing) Autoparts Co., Ltd. : Localization of 2012 : Isuzu Qingling (Chongqing) Autoparts Co., Ltd. : Localization of

engines and components, export base.engines and components, export base. Incorporate and increase earnings by means of consolidation of component

manufacturing operation and sales expansion thereof including industrial engines.

CV businessCV business

LCV LCV businessbusiness

Contribute to the LCV business by introducing pick-up trucks and derivatives. AugustAugust 2012 : Agreed to launch a joint ventures for vehicle and engine production and 2012 : Agreed to launch a joint ventures for vehicle and engine production and

sales (with Jiangling Motors Co., Ltd.)sales (with Jiangling Motors Co., Ltd.) JIANGXI ISUZU MOTORS CO., LTD. JIANGXI ISUZU MOTORS CO., LTD. ((VVehicleehicle)) JIANGXI ISUZU ENGINE CO., LTD.JIANGXI ISUZU ENGINE CO., LTD. (Engine)(Engine)

Establish Establish SSupport upport OOperations perations -- China China --


CV CV businessbusiness

July 2011 : Introduced best suited product for India equipped with Isuzu components July 2011 : Introduced best suited product for India equipped with Isuzu components based on the existing SML truck.based on the existing SML truck.

Strengthen SMLI functions. April April 2012 2012 : : Increased the investment ratio Increased the investment ratio from 4 to 15%) and dispatched from 4 to 15%) and dispatched

engineering and sales personnel.engineering and sales personnel. Establish a dedicated task force team in SMLI

to reorganize DLR network.

LCV businessLCV business

EEstablish stablish SSupport upport OOperations perations -- India India --

Introduce a low cost LCV model and emerging market products (new market entry).

Establish Isuzu-led manufacturing operations and sales network. AugustAugust 2012 2012 : Launched Isuzu Motors India (Chennai).: Launched Isuzu Motors India (Chennai).

Contribute to CV/LCV business for emerging market through low-cost parts and products.


Middle EastMiddle East

June 2011 : Launched Isuzu Saudi Arabia and launched the KD assembly plant by 2011 : Launched Isuzu Saudi Arabia and launched the KD assembly plant by the end of 2012.the end of 2012.

2012 : Expanded the territory of Isuzu Middle East (After2012 : Expanded the territory of Isuzu Middle East (After--Sales Center) (East Africa).Sales Center) (East Africa).

South America / Africa South America / Africa

Further Isuzu involvement CV Sales business in South America, CV

sales/manufacturing in South Africa

CIS / Australia CIS / Australia

* DB: DistributerKD Assembly plant in Saudi Arabia

ReRe--strengthened business in Russia: Increased the investment ratio in strengthened business in Russia: Increased the investment ratio in SollersSollersIsuzu (from 29 to 45%).Isuzu (from 29 to 45%).

Strengthened parts business of the Australia DB subsidiary (serves as a hub for Strengthened parts business of the Australia DB subsidiary (serves as a hub for parts operation in Oceania).parts operation in Oceania).

Secure Secure SStable table PPosition in osition in EEmerging/merging/AAdvanced dvanced MMarketsarkets


Changing points from the Mid-term Business Plan development

Surrounding environment at the Mid-term Business Plan development

Greater uncertainty for global economy.- Chinese/India economy slowdown, European sovereign debt crisis.

Higher environmental awareness, diversified fuel types

Worse environment in manufacturing in Japan.- Manufacturers in Japan face six-fold difficulties (continuous strong JPY /power restrain, etc.)

Global eonomy: Economic stagnation continues in the advanced countries.

Competition: Rise of Chinese, Korean, and Indian manufacturers.

Product/technologies: Expand product ranges for customer needs. Drastic rise of cost for environmental measures.

Domestic Operations: Deteriorated business environment surrounding transport business.

Supply chain in Japan: Risk of overconcentration in Japan.

Steady execution of the Mid-term Business PlanHigh efficiency DE development and activities toward future technology

Toward MidToward Mid--term Business Plan Advancementterm Business Plan Advancement


Director of the Board, and Managing Executive Officer, Corporate Planning and Financial

Toshio Sasaki


ⅡⅡ--1 1 ．． Business StatusBusiness Status


CV/LCV Global ShipmentCV/LCV Global Shipment-- Vehicle and KDVehicle and KD--SET, etc: KSET, etc: K--unitsunits

90 99 96 54 42 47 59 60

151 148 170194

127206 211 221

302 306

259

346 299

407

73

203

372364377

0

200

400

600

800

FY05 FY06 FY07 FY08 FY09 FY10 FY11 FY12 FY13

LCV

CVOverseas

619643

543

CVDomestic

(453)

(520)(547)

640(567)

554(500)

427(386)

598(552)

（）：Overseas Unit568(509)

ForecastForecast

The Great East Japan Earthquake

Flooding in Thailand

689

(628)

･Reinforcing overseas operating Capabilities

･Entering New Markets

Global Financial crisis

Inventory Adjustment


Japan

25

47

North America

6

1425

4 4

Asia29

27

4

Europe China

5858

592727252577

1010

2828

5656

9

CV Global ShipmentCV Global Shipment-- Vehicle and KDVehicle and KD--SET, etc: KSET, etc: K--unitsunits

24

292944

13

18

7

： H1Shipment FY11 FY12 FY13H1 131,278 118,488 135,447H2 120,901 150,869 146,153

Full-year 252,179 269,357 281,600

3434

’11/3 ’12/3 ’13/3’13/3ForecastForecast

ForecastForecast

60601111

3232

7070

5353

121234

3

1010








223232

5656

51010

55

12133 5

91414

5

29

4747

48

： H2

30

22 20

2345

28

29

20

25

5

6

155

Mid-South America

Oceania

Mid-East/ Africa


43,153 36,855

17,85826,137 31,927

41,963

26,109

23,764

25,275

23,762

35,548

33.7%

31.4% 29.7%32.9% 32.8% 31.1%

0

20,000

40,000

60,000

80,000

100,000

120,000

FY08 FY09 FY10 FY11 FY12 FY135%

10%

15%

20%

25%

30%

35%

H2

H1

（Unit）（Share）

51,41251,412

Japan Industry Sales and Isuzu ShareJapan Industry Sales and Isuzu Share-- H/D, M/D Truck:4ton or aboveH/D, M/D Truck:4ton or above --

85,116

62,964

41,622

59,31059,310

ForecastForecast

H1 ActualH1 ActualFY08-FY12 : FY ActualFY13: FY13-H1 ActualFY08-FY12 : FY ActualFY13: FY13-H1 Actual


（Unit）

45,618 38,88222,159 26,489

36,905

44,213

31,177

26,700

26,823

38,48627,980

38.6% 39.1% 40.0% 40.2% 40.2% 39.6%

0

20,000

40,000

60,000

80,000

100,000

120,000

FY08 FY09 FY10 FY11 FY12 FY1315%

20%

25%

30%

35%

40%

45%

H2

H1

（Share）

70,059

54,46948,859

Japan Industry Sales and Isuzu ShareJapan Industry Sales and Isuzu Share-- L/D(2L/D(2--3ton) Truck3ton) Truck --

89,831

65,309

ForecastForecast

H1 ActualH1 Actual

FY08-FY12 : FY ActualFY13: FY13-H1 ActualFY08-FY12 : FY ActualFY13: FY13-H1 Actual


： H1

： H2

1812

Asia

92

49

1414

EuropeChina

2525202202

1515

LCV Global ShipmentLCV Global Shipment-- Vehicle and KDVehicle and KD--SET, etc: KSET, etc: K--units units --

2632

23

13139 885

14

96

106

33

24

10

18

Shipment FY11 FY12 FY13H1 179,172 163,109 197,638H2 167,065 135,508 209,462

Full-year 346,237 298,617 407,100

21211717

3030

263263

6464

1212

ForecastForecast

99


177177

84

14141212

57

24

88

1312

24

8 3

121

12

32

11

166






Oceania Mid-South America

Mid-East/ Africa


PickPick--up truck monthly sales up truck monthly sales in Thailandin Thailand

（K-Unit）

10.9

13.1

14.3

16.0

11.712.1

16.8

19.0

12.1

15.4 15.614.8

17.6

15.7

10.6

14.5

13.4

10.610.710.9

9.9

11.9

10.2

7.5

2.0

4.7

9.9

10.911.810.8

0

2

4

6

8

10

12

14

16

18

20

APR MAY JUN JUL AUG SEP OCT NOV DEC JAN FEB MAR

FY11 FY12 FY13


Thailand LCV ShipmentThailand LCV Shipment-- Thai Domestic / Export Markets Thai Domestic / Export Markets ----

169,341

71,160

150,355

79,245

127,534

64,485

133,597

44,325

172,951

64,530

153,597

57,645

285,000

57,000

0

50,000

100,000

150,000

200,000

250,000

300,000

350,000

FY07 FY08 FY09 FY10 FY11 FY12 FY13

Vehicle

KD-SET

Forecast

177,922

342,000

192,019

240,501 229,600

(Unit)

237,481211,242


6356

15

5470

70

28

33

71

67

46

56

0

20

40

60

80

100

120

140

160

FY08 FY09 FY10 FY11 FY12 FY13

138133

84

48

126

102

H2

H1

Forecast

Industrial EngineIndustrial Engine Global ShipmentGlobal Shipment-- KK--UnitsUnits--

IndustrialEngine

～1.1 1.6 2.2 2.4 3.0 5.2 7.8 9.8 15.7 ℓ

C(IDI) C(DI) 4L 4J 4H 6H 6U 6W


ⅡⅡ--22.. FY2013 H1 Financial SummaryFY2013 H1 Financial SummaryApril 2012 April 2012 –– September 2012September 2012


( JPY Bil. ) FY13 H1 F12 H1 Changes FY13 H1plan

Net Sales 780.1 658.1 122.0 790.0


Ordinary Income 60.4 45.1 15.3 52.0

Net Income 42.1 33.7 8.4 35.0

FY2013 H1 Consolidated ResultsFY2013 H1 Consolidated Results-- YearYear--onon--year Comparison year Comparison --

* FX: FY13 H1 = 80JPY/US$FY12 H1= 81JPY/US$


FY2012 vs. FY2013 H1 FluctuationsFY2012 vs. FY2013 H1 Fluctuations-- Consolidated operating income: analysis of change, JPY:Bil. Consolidated operating income: analysis of change, JPY:Bil. --

-11.4

’

43.8

13.5

22.3

3.4

-0.3 57.3

1.2

-1.7

Operating Incomefor FY12 H1

Operating Incomefor FY13 H1

Material C

ost R

eduction

Sales/Model M

ix

Steel, Oil Price

etc. Fluctuations

Fixed Cost

Fluctuation

FX Effect of previous FY

（Loss on disaster/ Fixed cost),others


FY2013 H1 Consolidated ResultsFY2013 H1 Consolidated Results-- Ordinary income, Net income, YearOrdinary income, Net income, Year--onon--yearyear --

Operating Income Change 13.5* Equity in Earnings of Affiliates: 1.9* Financial account balance/ FX gain and loss, Other -0.1

Total 15.3

Ordinary Income 60.4* Loss on disposal of noncurrent assets,etc -0.8* Tax and minority interests: -17.5

Net Income 42.1

OrdinaryIncom

eExtra Profit /

Loss etc.

( JPY Bil. ) FY13 H1 FY12 H1 Changes

Net Sales 780.1 658.1 122.0Operating Income 57.3 43.8 13.5Ordinary Income 60.4 45.1 15.3

Net Income 42.1 33.7 8.4


ⅡⅡ--33.. FY2013 FullFY2013 Full--year Outlookyear Outlook


FY2013 FullFY2013 Full--year Outlookyear Outlook-- YearYear--onon--year Comparisonyear Comparison --

FY12 FY13 Previousplan

Net Sales 1,630.0 1,400.1 229.9 1,630.0


Ordinary Income 133.0 102.9 30.1 127.0

Net Income 91.0 91.3 -0.3 81.0

ChangesFY13 Forecast(JPY Bil)

※FX: FY13 = 80JPY/US$FY12 = 79JPY/US$


FY2012 vs. FY2013FY2012 vs. FY2013 FluctuationsFluctuations-- Consolidated operating income: analysis of change, JPY:Bil.Consolidated operating income: analysis of change, JPY:Bil.

97.4

28.6

32.5

8.0

126.0

（Forecast）

-1.5

-11.4

-1.5

2.5

Operating Income for FY12 Operating Income for FY13

Effect of previous FY

（Loss on disaster/ Fixed cost)

FX

Fixed Cost

Fluctuation

Steel, Oil Price

etc. Fluctuations

Sales/Model M

ix

Material C

ost R

eduction


FY2013 FullFY2013 Full--year Outlookyear Outlook-- Ordinary income, Net income, YearOrdinary income, Net income, Year--onon--year year --

( JPY Bil. ) FY13 FY12 ChangesNet Sales 1,630.0 1,400.1 229.9

Operating Income 126.0 97.4 28.6Ordinary Income 133.0 102.9 30.1

Net Income 91.0 91.3 -0.3

Operating Income Change 28.6* Equity in Earnings of Affiliates: 4.0* Financial account balance/ FX gain and loss, Other: -2.5

Total 30.1

Ordinary Income 133.0* Loss on disposal of noncurrent assets,etc: -0.5* Tax and minority interests: -41.5

Net Income 91.0

OrdinaryIncom

eExtra Profit /

Loss etc.


[Appendix][Appendix]

Main Financial IndexMain Financial Index


CAPEX and Depreciation (Consolidated)CAPEX and Depreciation (Consolidated)-- Recent Trend and Forecast Recent Trend and Forecast --

*1 *1 *1*1

（Forecast）

*1

（JPY:Bil）

*1 FY09 or later included lease

50.6

41.5

66.7

39.6

25.7

39.5

29.4

36.433.3

36.0

67.0

35.0

0.0

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

FY08 FY09 FY10 FY11 FY12 FY13


442.9

353.8

280.6 258.4 297.6 312.6328.1

415.5

196.0274.8

325.9 363.4315.0 300.6 273.6

203.1

0.440.78

1.16 1.411.06 0.96 0.83

0.49

-500

-400

-300

-200

-100

0

100

200

300

400

500

'09/3 '09/9 '10/3 '10/9 '11/3 '11/9 '12/3 '12/9

-5

0

5

ＤＥＲ

（DER）

Interest Bearing Debt / Equity Capital (Consolidated)Interest Bearing Debt / Equity Capital (Consolidated)

（JPY:Bil）Interest B

earing Debt

Equity Capital


116.8 107.8182.2

275.4293.3

269.2385.3

372.792.2

94.193.3

52.5

147.0

136.9

155.2177.2

178.8

172.7

139.4129.7128.073.477.7

323.9262.7

183.5

63.689.7

64.9

49.0

185.3168.2

0.0

100.0

200.0

300.0

400.0

500.0

600.0

700.0

800.0

900.0

1000.0

'09/3 '09/9 '10/3 '10/9 '11/3 '11/9 '12/3 '12/9

Others

PT&Compo

CV

LCV

690.6

565.0

442 .8

658.1742 .0

638 .1

724.9780.1

Consolidated Net Sales by SegmentConsolidated Net Sales by Segment-- LCV, CV, PT&Compo, Others(KD, parts) LCV, CV, PT&Compo, Others(KD, parts) --

（JPY:Bil）


353.8

415.5

280.6 258.4297.6 312.6 328.1

442.9

27.324.9 26.8

29.5 30.534.2 36.2

27.4

0.0

50.0

100.0

150.0

200.0

250.0

300.0

350.0

400.0

450.0

500.0

'09/3 '09/9 '10/3 '10/9 '11/3 '11/9 '12/3 '12/9

0

5

10

15

20

25

30

35

40

45

50

ConsolidatedEquity Ratio

（％）

Consolidated Equity Ratio: Historical TrendConsolidated Equity Ratio: Historical Trend

(JPY:Bil.)C

onsolidated Equity C

apital


110.0 106.4 109.3138.2 154.5 157.1

101.0119.8

1.3 1.31.2

1.3

1.5

1.00.9 0.9

0

50

100

150

200

250

300

'09/3 '09/9 '10/3 '10/9 '11/3 '11/9 '12/3 '12/9

0.0

0.3

0.6

0.9

1.2

1.5

1.8

Inventory BalanceInventory Balance-- Consolidated Consolidated --

(JPY:Bil.) （Month）

Month Turnover


CAPEX and Depreciation (Consolidated)CAPEX and Depreciation (Consolidated)-- Recent Trend Recent Trend --

26.9

16.9

20.0

13.314.3

15.113.8

11.9

18.018.018.118.319.819.7

0.0

5.0

10.0

15.0

20.0

25.0

30.0

'09/9 '10/3 '10/9 '11/3 '11/9 '12/3 '12/9

(JPY:Bil.)

Depreciation

CA

PEX

fy2013 h1 financial results...fy2013 h1 financial summary 3. fy2013 full-year outlook Ⅲ． q&a...

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