Midterm Business Plan
FY2019 - FY2021
May 14 , 2018
Isuzu Motors Limited

At the starting line of our midterm business plan

■Expecting huge wave of environmental change in 2020’s.
■Isuzu set-up mid and long term vision to flexibly adapt the change.
■Isuzu will press forward “the new Midterm Business Plan” to achieve the vision.
Netsales

OP

2,500

250

2,000

200

1,500

150

1,000

100

500

50

00

Bill. JPN
Yen

Huge wave of change in 2020’s

Mid-longterm vision
in CY2030
New ChallengesMidtermBusiness Plan
FY19 - FY21
Further Enhancement

Global business formation
Life-cycle support organization<Line chart :Net Sales Bar chart : OP>

1Ex-midterm business plan review
Ex-midterm plan measures and policies

Quantitative target and result

Tasks accomplished

Record-high sales
TargetResult

Net sales
FQ18/032,200 -2,300
Bill. JPN Yen

2,070
Bill. JPN Yen

Operatingprofit ratio
Ave, 3 yrs.

9.0%

8.2%

ROE
Ave. 3 yrs.

12.0%

13.1%

20%～30%3 years

Payout ratio
24.9%
Ave, 3 yrs.
+Share buyback
49.5 Bill. JPN Yen

Global business formation■ Perfect fit product offering for each market.
■ Planned product line-up accomplished.

Life-cycle support organization■“PREISM” to maximize customer’s benefit launched in Japan.
■“Near-field” activity promotion throughout Isuzu groupto customer’s engagement in overseas.

LocatedFoundation
Consolidation

Five ASC After Sales Center
IIF
Isuzu International FZE (UAE)IMSAf Isuzu Motors South Africa (South Africa)
IEA
Isuzu East Africa (Kenya)
ISZR
Isuzu RUS (Russia)

Total
return ratio

With above outcome Isuzu will realize remarkable growth and sustained earning power.
2Mid-long term visionOur heart is always with You
supporting people’s life and social production activities
as a CV/LCV and Powertrain excellent company
People’s life
Social production activities

Broad-wide solution

Supportive diverse service line-up
Leading sources

・Truck・LCV・Powertrain technology
・Logistics engineering
・Bus・Vehicle manufacturing technology
・Social-infrastructure support
・Life-cycle support
・Vehicle diagnostics know-how
・Energy management
・Special equipment
・Global foot print and Service net workvehicle
・Customer/Partner network
・Diverse power source
・Indusial DE＊CV: Commercial Vehicle

LCV:Light Commercial VehicleDE:Diesel Engine3

New Midterm business plan overview【New Midterm business plan strategy FY19- FY21】“Current business deepening” and“New engagement for next generation”
Current BusinessDeepening

Global Biz formation
Life-cycle support

Earning growth throughcore business7 keyChallenges

1) Collaborative business
Innovation
2) Expand overseas CV business
3) Strengthen LCV business4) Enhance powertrain business5) Accelerate advance technology6) Implement digital innovation

New engagement

Mid-longtermvision

Planting for the future7) Create new businessResult (FY18)

TargetNet sales

2,070 Bill. JPN Yen

FY21 2,300 Bill. JPN Yen

Operating profit ratio

8.1%

Ave. 3 yrs. 9.0%

ROE

12.2%

Ave. 3 yrs. 12%

Total return ratio

24.6%

Ave. 3 yrs. 30%
41) Collaborative business innovation

7 key challenges

Create new solution with customer.
Brand new integration of products and services.
Global business formation
Vehicle Modification

Body
BuilderIndustrialEngine

New approach of truck usage andlogistics operation improvement.

Create new solution
with collaborative activities
Sales

Leasing Telematics Maintenance

Life-cycle support business

Case 1Develop new industrial
business value.

25m double trailer consolidated truck

Joint development with major
forwarder and body builder.
Contribution to Logistics business.

Case 2

Diverse usage

CustomerThings to care

New generation maintenance lease

Offering most appropriate maintenance lease program andstable operation service to customers, utilizing in-depth ofcustomer usage by remotely connected data.

52) Expand overseas CV business7 key challenges■ Deliver perfect fit vehicles and services utilizing global business formation.

“Japan made ”+ “ASEAN & China made” → Perfect fit vehicleASEAN : EM exclusive truck●●●
China : Heavy duty truck

Give high sales priority on ASEAN/Middle East/ African
markets where Isuzu invested in Ex-midterm businessplan to drive earnings growth.

Major DB/ASC● : Existing● : New / Expanded

Indonesia : Light weighted truck

Overseas sales : 275 Thou. Units (30% increase compare to FY18)＊ DB：Distributors

EM : Emerging market6

7 key challenges

3) Strengthen LCV business■ Launch new model applying customer’s fast-changing demand to expand LCV sales.

■ India as work-horse model production base to meet wide range customer needs.

Product strategy

Sales strategy■ New model development applying environmentallyconsidered and safety requirements in addition to Isuzu
strength of “Robust” performance.

■Enhance sales in Africa and Middle East.
■Break into open market area (CV network sharing).

■ Launch new model in midterm period to stabilize LCV
top brand position.
EuropeM/East

Central America

AfricaImproving fuel-efficiency and safety features
Corresponding variety of usage and environment

OceaniaSouth America

LCV sales : 390 Thou. Units (23% increase compare to FY18)74) Enhance powertrain business7 key challenges

Sales challenge to 200 thousand units
Take positive approach utilizing “CV spirit base business” + “ Collaboration” activities

Powertrain Business
R&D/ Manufacturing■ Utilize China base CV R&D for
application engineering and cost
reduction activities.

Sales■ Utilize CV network.
■ Enhance vehicle component Biz.

ProductsCustomer

Shift Isuzu business style
from REQUEST to PROPOSAL base
Established “Industrial Solutions Division” in FY18.
Integrated major function : Planning,
Engineering and Sales to make further
leap forward.

Construction Machinery
Power Generator
Agricultural Machinery
Forestry Machinery
Marline Machinery
For other CV OEMEtc.

■ Complement product line-up byalliance partnership.

87 key challenges

5) Accelerate advance technology

Enforce on-going 5 focus field
Speed-up effect utilizing partnerships
Value throughout CV Engineering
Reliability
SafetyEconomyCustomer friendly

Environment

Platooning
Autonomous
CY2018 : N-series with pedestrian
protection AEBS

CY2017 : Platooning in demonstration

Advancedsafety

EV
5 focus field

Connected

High-efficientICE
CY2018 : N-series EV monitoring“PREISM” (C&E standard)
CY2018 : N/F-series exclusive models
CY2019 : N/F-series Standard

CY2018 : 4JZ1 engine launched＊ ICE：Internal Combustion Engine

AEBS：Advanced Emergency Braking Systems97 key challenges

5) Accelerate advance technology -Powertrain basic principle-

Expand powertrain line-up as CV driven company
Providing powertrain covering regional energy requirement and variety range of customer’s usage.

ElectricityDiesel

Natural Gas(CNG・LNG)

Most suitable EV for CV

High-efficiency clean DEExploit and Create
MarketDiesel Engine basic principal in midterm periodIsuzu mission is to offer attractive Diesel Engine as Diesel Engine driven company.
We will continue to pursuer further high-efficient and clean Diesel Engine to be the leader in GlobalDiesel Engine market.
107 key challenges6) Implement digital innovation■ New value creation and operational renovation by digital innovation to reinforce
sustainable business model.
■ Expand customer solution method by analyzing every dataCustomer
Life-cycle
supportTelematics

Solution development
through close linkage

DriversupportInfotainment

Offensive IT

CV data platform

New value-creation(Customer vehicle in operation data, best practice data , loading data etc.)

Defensive IT
Operationalrenovation

・・・・・・

Accelerate Cross-industrial Partnership for the Platform structuring■ Introduction of All-new Basic system and RPA• Global Supply Chain optimization• Shift to high-value added job• Smart work implementation• Group Business Management / Governance enhancement＊ RPA：Robotic Process Automation11

7 key challenges7) Create new business■ New ventures supporting more efficient sustainable growth for the entire society.
■ Accelerate creating new solution throughout customer and cross-industrial collaboration.

Isuzu ideal future society

Logistic engineeringSocial-infrastructure support

Energy management

Vehicle related hardware, service andmanagement support solution

Participate in next generation traffic
infrastructure operation to support smooth
driving / getting-in/off / cargo handlingIndustrial solution with clean and safety
power source

12Financial focus■ Consistence shareholder return investing for mid-long term to ensure substantial growth.

FY19 – FY21 Cash Flow and Allocation■ Ensure revenue from existing business field expansion.
Operating + Financial CF
400-500 Bill. Yen■ Maintain Financial health condition with well balanced
debt- equity ratio.

Capital investment+Strategic investment
350 Bill. Yen level■ Shift to product improvement and digital innovationfrom footprint investment.
■ Enhance strategic investment on advanced technology andnew business creation including alliance collaboration.

Shareholder return(Total return ratio)
Ave. 30%■ Ensure stable, continuous shareholder return.

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For sustainable growth■Isuzu goal is to create social value throughout business activities for community as well as
Isuzu sustainable growth.

Mid-long term vision

Being well received CV/LCV and Powertrain excellent company

supporting people’s life and social production activities.
Productivity growth ofLogistic industry(lack of decent work)

Social agenda
need be solved
throughout
Isuzu business

Midterm business plan
FY19 - FY21

Logistic optimization(resolve traffic accident/congestion)

Climate change
and Economic growthProtect living condition
at disaster and emergency

End hunger“Current business deepening” and “New engagement for next generation”
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Notice to The ReadersThis document is intended for informational purposes and includes, but is not limited to, statements on future business performance andbusiness plans. Information contained in the document, other than historical or current facts, constitutes forward-looking statements which are
based on assumptions and judgments formed by the management of the Company in view of information currently available. By its nature, Isuzu
does not guarantee or give any warranty as to the accuracy of all information contained in this document. Moreover, Isuzu undertakes noobligations to update such forward-looking statements such as statements on future business performance and business plans, based on future
events or new information.
Such statements involve elements of risk and uncertainty contained in such assumptions and judgments, and/or various factors including but notlimited to economic changes in future, changes in automotive market conditions, foreign currency exchange rate fluctuations, and changes ofbusiness environment surrounding the Company. Such elements and/or factors may therefore cause the actual results and performance to bematerially different from any future results and performance expressed or implied by the predictive statements stated herein. If you actually havean intention to invest, you should not depend upon this document as your sole source of information, and should use your own discretion in
making an investment decision.
Please be aware that Isuzu will not be responsible for any damages you may suffer as a result of making an investment decision based on theinformation contained in this document.

【Appendix table 】

Social tasks to be solved throughout Isuzu BusinessSocial tasks

Relation with SDGs

 Productivity growth of logistics industry is addressed

Productivity growth ofas urgent social issue especially in Japan.
Logistic industry
 Contribute to solution in logistic industry, Isuzuimmediate customer will lead to customer value(lack of decent work)
creation.
Logistic commutation(resolve trafficaccident/congestion)

 Economic development actualized traffic accident andcongestion world wide which may carry non-functional
logistics risk.
 Isuzu to fulfill social responsibility for traffic accident
and congestion resolve as Vehicle OEM.

Protect living condition  CV is must-have item for construction site and homedelivery purpose supporting people’s life.
Protection at disaster  Isuzu will continuously provide vehicles for protection
at disaster and emergency.
and emergency
Climate change andEconomic growth(CO2/Exhaust Gas)

End hunger Isuzu business is supporting economical development
but also having aspect placing burden on climatechange.
 Isuzu have responsibility to contribute continuous
environmental friendly society.
 At many of Isuzu operation emerging counties areworking to resolve hunger problem.
 Isuzu have responsibility to contribute end hunger
throughout our business activities.
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