Message from President

President and Representative Director Susumu Hosoi  Isuzu Motors announced its financial results for the year ended March 2014 on May 12, 2014.

(FY2014 Financial Results)

  FY2014 Isuzu unit sales in Japan were strong on demand related to reconstruction activities in the areas hit by earthquake and tsunami and economic stimulus package by Japanese government. On the other hand, the total sales volume outside Japan including pickup trucks decreased year- on-year owing to a slowdown in Thailand where market environment worsened more than expected. Yet, Isuzu again posted the highest overseas truck shipments in its history for four straight years because of strong truck sales in North America, the Middle East and Africa.

  As a result of the increased truck sales above, net sales reached 1760.9 billion yen, an increase of 105.3 billion yen or 6.4% from the same period last year. Operating income gained 43.4 billion yen or 33.2% to 174.2 billion yen and ordinary income rose 44.9 billion yen or 31.7% to 186.6 billion yen. In spite of increased spending for the measures and tasks under the Mid-Term Business Plan, the effect of net sales increase, continued improvements in cost structure and yen's depreciation contributed to the increase of operating income. Net income also increased 22.8 billion yen or 23.6% to 119.3 billion yen year-on-year. The Company posted the record profits for each income item for the second straight year.

(FY2015 Forecast)

  We expect our sales in Japan will stay as strong in FY2015 as in FY2014. As for overseas markets, although demand recovery will remain difficult to predict in our main market, Thailand, all other markets are projected to enjoy a strong demand and thus we aim to expand our sales revenue in those markets.

  With regards to cost and spending, we will aggressively spend and invest for further growth and business expansion in the future and a resultant stronger corporate structure.

  With regard to FY2015 financial performance, the Company, in light of the above, forecasts net sales of 1,840.0 billion yen (up 79.1 billion year-on-year), operating income of 165.0 billion yen (down 9.2 billion yen year-on-year), ordinary income of 175 billion yen (down 11.6 billion year- on- year) and net income of 100.0 billion yen (down 19.3 billion year-on-year).

  We are developing a next mid-term business plan and fine-tuning its details. Isuzu firmly believes that we should further put into practice and accelerate initiatives for its growth strategy centering around "Strengthening CV business for emerging markets", "Stabilizing Japan business" and "Enhancing and expanding LCV business".

  We would greatly appreciate more of your understanding and support than ever for Isuzu Motors Limited.

(May 12, 2014)