FY3/2024 1H Financial Results

November 10, 2023

ISUZU MOTORS LIMITED

Copyright(C) 2023 Isuzu Motors Limited All rights reserved

Contents

  1. Overview
  2. FY3/2024 1H Financial Summary and Full-year Outlook
  3. Progress of Mid-Term Business Plan

1

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1. Overview

2

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Overview -1

1. FY3/2023 1H Results (YoY Comparison)

  • Isuzu faces a challenging environment with market conditions deteriorating mainly in emerging countries and being hit by negative impacts from fluctuation of material costs etc. Despite these challenges, Isuzu was able to increase profit thanks to positive effects from the weakening of Japanese yen, favorable aftersales business, and promotion of price realization.
  • Marked highest sales amount and profits ever for the 1st half period.
  • CV unit sales for emerging countries decreased reflecting the falling demand. On the other hand, CV unit sales for developed countries grew as parts procurement recovered.
  • While LCV unit sales for Thailand decreased significantly due to harsh market conditions, LCV unit sales for export markets increased mainly in markets with considerable number of backlogs due to parts shortages.

2. FY2023 Full-Year Outlook

  • Though unit sales of both CVs and LCVs are forced to make a downward revision due to deteriorating market conditions, price realization and cost reduction activities etc. are making favorable progresses. Together with material costs rise below our assumptions and further weakening of the Japanese yen, shall revise the full-year outlook upward.
  • Operating income is forecasted to sum up to 280.0 billion yen, up 20.0 billion yen from our previous outlook.

Refer to page 25 for explanation of the following words:

CV (Commercial Vehicle)=Trucks & Buses

3

LCV (Light Commercial Vehicle)=Pickup trucks and vehicles deriving from pickup trucks

Copyright(C) 2023 Isuzu Motors Limited All rights reserved

Overview -2

3. Shareholder Returns

  • Comprehensively considering the financial condition, cash flows, expected future revenues, and other factors, shall repurchase shares up to 50.0 billion yen within this fiscal year. Isuzu aims to enhance

shareholder returns and to improve capital efficiency. （All shares acquired shall be cancelled.）

  • Dividends for the full-year shall be revised upward by 6 yen from the previous outlook to 86 yen per share, based on the current mid-term business plan's 3-year average payout ratio target of 40%.
  • Total shareholder return ratio for the 3-year period of the current mid-term business plan period is expected to reach 51％.
  • We shall continue to strive to achieve the ROE target for this fiscal year of 12.5% by increasing profit.

4. Business Restructuring

  • IJTT Co., Ltd., a consolidated subsidiary, will commence a new collaboration with SPARX Group Co., Ltd and Japan Monozukuri Mirai Investment Limited Partnership aiming to not only deepen existing business, but to also expand into new business areas.
  • While IJTT continues to be a key supplier of Isuzu, IJTT will aim to further enhance its corporate value.
  • As a result of the shares transfer, IJTT will cease to be a consolidated company within this fiscal year and will be accounted by using the equity method.
  • Expects to record an extraordinary loss of approximately 6.0 billion around March 2024.

4

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Overview: FY3/2024 1H Consolidated Results

Global Unit Sales (K-units)

1H FY3/2024

1H FY3/2023

Changes

CV-Japan

38

27

11

40%

CV

CV-Overseas

122

148

-26

-17%

Total

160

175

-15

-8%

LCV-Thailand

61

104

-43

-42%

LCV

LCV-Export

115

104

11

10%

Total

176

208

-32

-16%

Total

336

383

-47

-12%

Financial Results (Bil. Yen)

Sales

1,638.0

1,493.3

144.7

10%

Operating Income

143.2

112.2

31.0

28%

Ordinary Income

158.0

125.5

32.5

26%

Net Income

88.1

73.0

15.1

21%

5

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Overview: FY3/2024 Full-Year Outlook

FY3/2024

FY3/2024

Changes

Global Unit Sales (K-units)

Revised Plan

Previous Plan

CV-Japan

84

90

-6

-6%

CV

CV-Overseas

255

275

-20

-7%

Total

339

365

-26

-7%

LCV-Thailand

129

149

-20

-13%

LCV

LCV-Export

241

241

0

0%

Total

370

390

-20

-5%

Total

709

755

-46

-6%

Financial Forecast (Bil. Yen)

Sales

3,400.0

3,300.0

100.0

3%

Operating Income

280.0

260.0

20.0

8%

Ordinary Income

300.0

275.0

25.0

9%

Net Income

165.0

155.0

10.0

6%

Dividends

86 Yen

80 Yen

6 Yen

(Reference)

FY3/2023

67

287

354

202

215

417

771

3,195.5

253.5

269.9

151.7

79 Yen

6

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2. FY3/2024 1H Financial Summary and Full-year Outlook

7

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Global Unit Sales (CV) -1

  • 1H Unit Sales: Unit sales grows in Japan and North America as parts shortages has eased. Unit sales decreases in emerging countries, especially in Asia and Mid/South America, as rise in interest rates and inflation impacts the market.

20

17

32

20

58

74

32

46

（K-units）

13

24

:1H

11

11

10

19

41

17

:2H

9

7

9

35

22

FY3/23

FY3/24

15

FY3/23

FY3/24

Forecast

China

Forecast

23

33

FY3/23

FY3/24

Overseas

Europe

100

North America

29

31

FY3/23

FY3/24

26

19

77

Forecast

11

10

11

14

16

Japan

50

9

10

10

6

5

15

9

15

15

5

5

5

5

39

4

5

FY3/23

FY3/24

FY3/23

FY3/24

FY3/23

FY3/24

FY3/23

FY3/24

Forecast

Forecast

Forecast

Forecast

Mid/South

Mid-East

UD Trucks-

50

UD Trucks-

38

Overseas

America

19

19

Japan

18

FY3/2023

FY3/2024

9

10

16

CV

FY3/23

FY3/24

Full-

Full-

10

9

Forecast

8

8

1H

Year

1H

Year

FY3/23

FY3/24

10

8

Forecast

Asia

Japan

27

67

38

84

Africa

FY3/23

FY3/24

Forecast

Details of Global Unit Sales-CV

Overseas

148

287

122

255

Japan：Wholesale & Direct Sales to Customers

Oceania

Total

175

354

160

339

North America / Australia: Wholesale of Local Distributors

8 Other Regions: Shipment from Japan.

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Global Unit Sales (CV) -2

Comparison of Previous and Revised Full-Year Outlook

  • Revised outlook downward due to longer lead time to sales in Japan and falling demand in emerging countries mainly in Asia resulting from interest hike and inflation.

16

17

26

20

80

74

46

46

（K-units）

: Previous Plan

Previous

Revised

: Revised Plan

Previous

Revised

Plan

Plan

Plan ChinaPlan

Europe

Previous

Revised

29

31

Plan

Plan

90

North

22

19

77

Previous

Revised

America

Plan

Plan

10

10

10

10

Previous

Revised

Japan

Previous

Revised

Previous

Revised

Plan

Plan

Previous

Revised

Plan

Plan

Mid- East

Plan

Plan

Plan

Plan

Mid/South

22

19

UD Trucks-

UD Trucks-

America

Japan

Overseas

Previous

Revised

14

16

Previous

Revised

Changes

Previous

Revised

CV

Plan

Plan

Plan

Plan

FY3/24

FY3/24

Plan

Plan

Asia

Previous

Revised

Japan

90

84

-6

Africa

Details of Global Unit Sales-CV

Plan

Plan

Overseas

275

255

-20

Oceania

Japan：Wholesale & Direct Sales to Customers

Total

365

339

-26

North America / Australia: Wholesale of Local Distributors

9 Other Regions: Shipment from Japan

Copyright(C) 2023 Isuzu Motors Limited All rights reserved

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Isuzu Motors Ltd. published this content on 10 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 15 November 2023 11:52:01 UTC.