Message from President

President and Representative Director Masanori Katayama

On May 14, Isuzu Motors announced the settlement of accounts for the fiscal year ended March 31, 2018.

[Results for the fiscal year ended March 2018]

In the fiscal year ended March 2018, vehicle unit sales in Japan fell by 8,079 units (10.1%) compared with the previous fiscal year to 72,262 units.
Overseas vehicle unit sales rose by 3,652 units (0.9%) over the previous fiscal year to 429,630 units as pickup trucks sold well in Thailand and emerging markets showed a recovery trend.
As a result, consolidated total vehicle unit sales in Japan and abroad decreased by 4,427units (0.9%) year-on-year to 501,892 units.

As regards sales amounts of products other than vehicles, sales of parts for overseas production increased by 13.5 billion yen (23.4%) compared with the previous fiscal year to 71.5 billion yen, engine and component sales jumped by 23.7 billion yen (22.9%) over the previous fiscal year to 127.0 billion yen, and other sales gained by 25.7 billion yen (6.7%) year-on-year to 408.9 billion yen thanks to growth in the vehicle life-cycle management business such as after-sales services.

Consequently, net sales grew by 117.1 billion yen (6.0%) compared with the previous fiscal year to 2,070.3 billion yen, which comprised 786.9 billion yen for Japan, down 0.2% over the previous fiscal year, and 1,283.5 billion yen for the rest of the world, up 10.2% year-on-year,owing to the increases in the pickup truck sales in Thailand and the engine and component sales, as well as thanks to the expansion in the vehicle life-cycle management business.

On the profit and loss front, the afore-mentioned sales growth effect and efforts to reduce and control costs and expenses, combined with favorable movements in foreign exchange rates, all raised operating income by 13.9% compared with the previous fiscal year to 166.8billion yen and ordinary income by 14.2% over the previous fiscal year to 173.6 billion yen.Net income attributable to owners of the parent climbed by 12.6% year-on-year to 105.6billion yen.

[Forecast for the fiscal year ending March 2019]

In FY2019 ending in March 2019, the Company expects net sales to rise, forecasting a sales increase boosted by recovery in emerging economies and a growth in the industrial engine business, though predicting only a slight increase in vehicle unit sales in Japan.

The Company seeks a profit increase by more than offsetting unfavorable turns in the foreign exchange environment and increases in raw material prices by net sales expansion and extensive cost-cutting efforts.

Consequently, our forecast for the fiscal year ending March 31, 2019, is as shown below.

  • -Net sales: 2,140.0 billion yen (up 69.6 billion yen from the previous year)
  • -Operating income: 176.0 billion yen (up 9.2 billion yen)
  • -Ordinary income: 184.0 billion yen (an increase of 10.4 billion yen),
  • -Net income attributable to owners of the parent: 110.0 billion yen (up 4.3billion yen).

[Development of Mid-Term Business Plan (April 2018 through Mar. 2021)]

Isuzu has mostly completed key challenges under previous Midterm business plan, expansion of the scope of its business and building a two-wheel-model where "Engineering, Sourcing and Manufacturing Operations" and "Operation to Minimize Downtime" closely linked and seamlessly run like two wheels. In the last year of previous Midterm business plan, fiscal year ending March 2018, Isuzu achieved record high sales amount.

In our new Midterm business plan it is taken for granted to secure revenue from existing business filed expansion. In addition, with newly set Mid-long term vision "Our heart is always with You-supporting people's life and social production activities as a CV/LCV and Powertrain excellent company", Isuzu will follow key challenges with new approach under two pillar strategy "Current business deepening" and "New engagement for the next generation".

Our quantitative target in a new Mid-Term Business Plan is to achieve 2,300 billion JPN yen (FY21) consolidated net sales, operating profit 9% (3 years average), ROE 12% (3 years average) and shareholder return 30% (3 years average).

Your kind understanding and support for Isuzu Motors will be greatly appreciated.