DAIHATSU MOTOR CO., LTD.
Annual Report 2006
Profile
Daihatsu―the Compact Car Specialist
Daihatsu Motor Co., Ltd. is a specialist in compact cars.
From the viewpoint of protecting the environment and conserving energy resources,
the compact car, with its excellent fuel efficiency, is of undeniable “benefit” to society.
At the same time Daihatsu cars, though compact, have a surprising amount of interior
space. They are also fun and dynamic, and have elements considered completely at
variance with their compact size.
Daihatsu aims to build cars that will excite our customers as well as us, the manufacturer. Currently, we are putting every effort into developing our business on a global
scale. With the recent decline in Japan’s birthrate, it is difficult to expect quantitative
growth in the domestic market, but there are countries and regions overseas where
various small-sized vehicles are essential. The entire company is united in pursuing our
dream of bringing the compact car to the world.
Contents
Forward-Looking Statements
Highlights in Fiscal 2006 . . . . . . . . . . . . . . . . . . . . . . . . . . 1
Management Message . . . . . . . . . . . . . . . . . . . . . . . . . . . 2
<Close Up>Global Operation . . . . . . . . . . . . . . . . . . . . . . 6
<Close Up>Research and Development . . . . . . . . . . . . . 8
Corporate Governance / Compliance. . . . . . . . . . . . . . . 10
Recent Topics. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 12
Consolidated Six-Year Summary. . . . . . . . . . . . . . . . . . . 14
Management’s Discussion and Analysis . . . . . . . . . . . . 16
Consolidated Balance Sheets . . . . . . . . . . . . . . . . . . . . . 20
Consolidated Statements of Income . . . . . . . . . . . . . . . 22
Consolidated Statements of Shareholders’ Equity. . . . . 23
Consolidated Statements of Cash Flows . . . . . . . . . . . . 24
Notes to Consolidated Financial Statements . . . . . . . . . 25
Report of Independent Auditors . . . . . . . . . . . . . . . . . . . 31
Investor Information . . . . . . . . . . . . . . . . . . . . . . . . . . . . 32
This annual report contains forecasts and projections concerning the plans, strategies and performance of Daihatsu
and its consolidated subsidiaries and affiliates. These forecasts and projections constitute forward-looking statements
that are not historical facts, but are based on assumptions
and beliefs in accordance with data currently available to
management. These forward-looking statements are subject
to a number of risks and uncertainties that include, but are
not limited to, economic conditions, intense competition in
the automobile industry, demand, foreign exchange rates,
tax systems, and laws and regulations. As such, Daihatsu
wishes to caution readers that actual results may differ
materially from those projected.
Highlights in Fiscal 2006
Consolidated net sales totaled ¥1,347.9 billion, a 14.6% increase over the previous
fiscal year, giving us the highest records in both sales and profit in the Company’s
history, and a continued upswing in sales and income for the fourth consecutive fiscal
year.
Sales of the mini passenger car Tanto as well as the new mini passenger car Esse
launched in December 2005 continued to grow and these cars became our core mini
Tanto〈660cc〉
vehicle models, pushing sales for mini vehicles up to 592,000 units, a 4.2% increase
year-on-year, thereby posting a new record high. Our share in the mini vehicle market
stood at 30.4%, maintaining our share of over 30% for the second consecutive year.
With the aim of building sales outlets appealing to female customers, our customer
satisfaction (CS) improvement initiative, the DAIHATSU Café PROJECT, has been well
received by customers.
We bolstered the production capacity at our joint venture company in Indonesia, P.T.
Astra Daihatsu Motor (ADM), and in December 2005 attained the ability to manufacture
114,000 units annually (on a double-shift operation).
Myvi〈1,300cc/1,000cc〉
Sales of the Myvi, a National Car in Malaysia, continued at a high level. In addition,
consigned production of Toyota’s Avanza made favorable progress. Because of these
reasons, we established the production capacity of 200,000 units per year (on a doubleshift operation) at the end of 2005 at Perodua Manufacturing Sdn. Bhd., a Malaysian
company that Daihatsu holds a stake in.
We signed a technical license agreement with FAW Jilin Automobile Co., Ltd. (FAW Jilin
Auto) of China. We are aiming at the first half of 2007 for the development, production
and distribution of a new passenger car targeted for the Chinese market under the
Daihatsu brand, based on a small multi-purpose vehicle jointly developed with Toyota
Motor Corporation (Toyota). And in April this year, we established a new joint venture
company in China, FAW Daihatsu (Jilin) Body Parts Co., Ltd. (FDJB).
Be-go〈1,500cc〉
We launched a new compact SUV (Sport Utility Vehicle)—Daihatsu’s Be-go and
Toyota’s Rush—and the Rush is supplied on an OEM (Original Equipment Manufacturer)
basis to Toyota. We also commenced consigned production of Toyota’s bB and Porte.
In May, we launched a new compact passenger car, the Coo, which, although sharing
its main components with Toyota’s bB, has an original Daihatsu design and equipment.
As a member of the Toyota Group, Daihatsu has been engaged in collaborative business operations in many different fields, such as joint development projects, OEM
production and consigned production.
Coo〈1,500cc/1,300cc〉
1
Management Message
”We are introducing a new management system, to transform
ourselves into becoming a global company.”
Due to steep rises in the price of crude oil and
increasing concerns for the environment, the compact car is bound to attract more attention. In fact,
the compact car market, which now boasts new
entrants from among the major automobile manufacturers into the mini vehicle market, is being revitalized due to intensified competition. Daihatsu,
too, is aggressively launching new models, and
striving to differentiate ourselves from the competitors by focusing on clear product concepts.
The Atrai Wagon, which we launched in May
2005, is a case in point. Targeted at the kind of
father who values time spent with his family, this
model is a powerful runner with a spacious interior. One of our core models, the Move, is a mini
Chairman (Right)
vehicle that exudes a high level of quality unex-
Kousuke Shiramizu
President (Left)
Teruyuki Minoura
Daihatsu maintained a substantial
market share of mini vehicles in Japan
pected in this size automobile, and makes its presence known despite the confines of its compact
body design. The Tanto, with its surprisingly spa-
During the fiscal year under review, mini vehicle
cious interior, offers a new lifestyle for young
sales in Japan underwent a favorable increase of
mothers. Looking ahead, as a compact car special-
3.6% above the previous fiscal year to 1,948 thou-
ist, we will continue to focus on our commitment
sand units. Thanks to excellent fuel-efficiency and
to developing and selling cars that will surprise
improved safety performance, consumers’ interest
and excite our customers.
in compact cars, including mini vehicles with an
engine displacement of 660cc or less, increased,
which continually expanded the demand. Daihatsu
sold 592 thousand mini vehicles, an increase of
2
Global expansion is essential for our
future growth
4.2% over the previous fiscal year, and our share
Unit sales in Japan of the Esse and Be-go, which
in this market climbed to 30.4%, an increase of 0.2
we launched during the fiscal year under review,
percentage points year-on-year. Daihatsu’s market
were strong. Overseas, the Myvi, a National Car in
share of mini vehicles surpassed 30% for the first
Malaysia that we launched in May 2005, performed
time in the previous fiscal year, and we have suc-
well, improving our business performance com-
ceeded in maintaining the significant share
pared with the previous fiscal year. We have also
through fiscal year 2006.
increased unit sales for Toyota from the previous
fiscal year thanks to the start of consigned produc-
quality control that are suitable anywhere in the
tion of the bB and Porte, in addition to other exist-
world. Of course, similar demands are also placed
ing domestic and overseas models, as well as the
on management and indirect departments.
commencement of supply of the Rush (Daihatsu’s
Be-go) on an OEM basis.
As a result, consolidated net sales for the
Daihatsu Group increased 14.6% year-on-year to
In pursuit of a top-down innovation
approach
¥1,347.9 billion. Operating income went up 21.2%
A strong will of top management is indispensable
to ¥48.6 billion. Income before extraordinary items
for a reformation. The bottom-up reform approach
and income taxes and minority interests went up
does not move beyond long-held and precon-
to ¥50.3 billion, or 27.2%, and net income totaled
ceived ideas, whereas the reformation we require
¥33.5 billion, a year-on-year gain of 29.6%. Of par-
is a complete breakthrough from the traditional
ticular note, our overseas sales jumped to ¥353.9
perspective. We have been promoting the con-
billion, a 40.8% increase over the previous year,
struction of an organization capable of boosting
and our overseas sales ratio to consolidated net
the profit as a truly global company and since June
sales gained 4.9 percentage points year-on-year to
2006 we have been hard at work on a new man-
reach 26.3%, contributing substantially to our con-
agement system.
solidated net sales. In contrast to Japan, where the
On the other hand, the reformation of an
low birthrate precludes expectations of quantita-
enterprise group comprised of over thirty thou-
tive market growth, our overseas business holds
sand employees cannot be accomplished on the
major possibilities. The globalization of our busi-
strength of a handful of people. So we first decid-
ness is absolutely essential for our future growth.
ed to cultivate exceptional personnel to spearhead
To transform ourselves into a global company
what we call a “top-down innovation.”
we need to do more than simply set up overseas
To compete effectively and survive in the
production facilities and local sales networks. We
global market demand a drastic reduction in costs,
believe the key to success also involves transform-
of nearly two-thirds or even one-half. To realize
ing the way we conduct our business in Japan. At
this objective, we need personnel capable of
research and development and production sites in
understanding development and production
Japan the implicit tendency is to rely on the skills,
processes from a multidisciplinary point of view.
concepts and knowledge of Japanese engineers to
The Company has a range of top professionals in
develop new models and set up production lines.
the fields of engines, welding, press, painting and
However, to develop on a global scale we need to
more. However, the efforts of these fields individu-
prepare research and development systems and
ally are not enough to achieve the kind of extreme
production facilities that are readily accessible to
cost-cutting we seek. For example, a revolution-
people outside Japan. Ingenious design is also
ized concept, such as the simplification of welding
necessary if we assume the manufacture of parts
processes by utilizing press technology, demands
at overseas plants. Reinvention at home is needed
people who have a thorough grasp of all aspects
for true globalization. It is imperative that we
of these manufacturing practises.
materialize design, development, production and
3
driving. However, no matter how sophisticated
our car systems become, we are determined that
our cars will not lose the warmth and familiarity
associated with the Daihatsu brand.
Daihatsu’s compact cars are an important
part of our customers’ everyday lives and we
would like our cars to become the kind of partner
that enhances life. The concept behind the Esse,
which we launched in December 2005, was to
offer a “simple, stylish and casual mini.” Daihatsu
offers, at a reasonable price, a car with simple and
lean styling and driving performance that lets the
customers enjoy everyday life just the way they
Daihatsu is investing its efforts in the selection
like it. Sales of the Esse, which has quickly
and cultivation of personnel who are capable of
received strong support from customers, are so
this kind of undertaking. For these individuals, we
strong that it will soon take its place among our
set goals that are too high to achieve without a
core lineup of mini vehicles alongside the Mira,
change in their way of thinking. Naturally, to
Move and Tanto. Designing and building cars from
achieve these lofty goals requires not only one’s
the customers’ point of view is the source of
own capabilities, but also the cooperation from
Daihatsu’s competitive edge.
others in different fields of expertise, which both
instills humility and encourages a desire to learn a
multitude of things. Then, the cumulative efforts of
As a Toyota Group member
all concerned will realize a breakthrough. In our
Mergers and acquisitions in the automobile indus-
view, these experiences of successful innovation
try will most likely continue on a worldwide scale.
spread throughout the whole of Daihatsu, and the
Developing technologies for environmental and
accumulation of such successes fosters a corpo-
safety measures will continue to require more
rate culture that drives reformation.
capital and it is indispensable for an automobile
manufacturer to be of sufficient scale to provide
4
We’re designing cars that are part of
everyday life
this.
Though we do not foresee a significant increase in
Although we have introduced many basic environ-
the number of cars sold in the domestic Japanese
mental and safety technologies from Toyota,
market, we can expect growth in earnings as more
adapting these technologies to the compact car
value is added to the cars. We intend to continue
has been our particular specialty. Showing our
improving on environmental technologies as well
strength within the Toyota Group is vital to our
as enhancing safety. A technology with the use of
survival in the highly competitive automobile
IT may even make it possible to achieve automated
industry, both in Japan and abroad.
As a compact car specialist, Daihatsu has
raised its importance in the Toyota Group.
Looking ahead to the next 100 years
Daihatsu will be celebrating our 100-year anniversary in March 2007. While this is a time we feel
proud of our achievements, we also feel a strong
sense of responsibility for the next 100 years. To
continue in business is one of the responsibilities
of a corporation. Considering today’s rapidly
changing business climate, it may not be possible
to continue being in business for even the next 10
years if we hold onto our old ways of managing
business. In order to compete effectively and win,
we have to make progress, not step-by-step, but
through a series of dynamic breakthroughs.
In June 2006, the Company shifted to a new
management structure that involved reducing the
global company we must pay more careful attention to corporate governance.
In the fiscal year under review, we increased
number of directors, appointing new executive
the cash dividend payout ratio to 24.5%. In order to
officers and introducing functional business
greet our 200th anniversary, Daihatsu will strive to
groups. The aims of the new management struc-
put all our efforts into expanding our business and
ture are to revitalize the board of directors meet-
continuing to return profits to shareholders. We
ings and speed up the decision-making process,
hope we can rely on your continued support and
reinforce and accelerate business execution func-
understanding of the Company’s undertakings.
tions, clearly delineate responsible parties and
realize an organization that follows through on
missions. This new management system is suited
for globalization of our business operations, a
August 2006
must for the future growth of the Company.
Further, we are taking more care than before to
assure transparency. Proper corporate governance does not function without our having transparency of operations in production sites, indirect
Chairman
departments and management. That is because
Kousuke Shiramizu
problems can become enormous if they arise in
areas where they cannot be seen. Problems such
as a quality issues can only be solved by transparency. Implicit knowledge and knowledge from
experience can also be obstacles to transparency
and can become hindrances to global develop-
President
ment. In order to transform ourselves into a truly
Teruyuki Minoura
5
<Close Up>
Global Operation
Global operations aimed at strengthening our
competitiveness in the overseas market
Aggressive business developments,
centering in the key countries of
Indonesia, Malaysia and China
points over the previous fiscal year, making an enormous
contribution to our consolidated results.
Due to sharp rises in gasoline prices and interest
rates, the current market in Indonesia is sluggish. In
Daihatsu recognizes that it is a comparative latecomer to
Malaysia, we must assume increasing free competition
the globalization of business regions, though even at this
caused by the lowering of tariffs and other factors.
stage we have achieved a certain measure of success in
The future course of our overseas business will first
our overseas business. Daihatsu’s Xenia and Toyota’s
involve expending efforts at our production bases in
Avanza, models resulting from a joint-development proj-
Indonesia and Malaysia to increase competitiveness of
ect with Toyota, are produced in Indonesia and have had
our business through stepping up cost-reduction and
strong sales. Sales of the Avanza, produced on a con-
quality improvement measures.
signed car basis in Malaysia, remain at a high level. Also
In China, through our collaborative venture with China
in Malaysia, in May 2005 we began local production and
FAW Group, we plan to have a production line in place in
sales of a National Car, the Myvi, which uses the Boon as
the first half of 2007. The compact car is gaining attention
a base. This model gained such popularity that production
in China, too, from the viewpoint of environmental and
could not keep up with demand. Exports of completely-
energy problems. The union of Daihatsu, a compact car
built-up (CBU) units, the Sirion (called the Boon in Japan)
specialist with ample know-how in production and devel-
have continued to expand in almost all sales regions,
opment, and FAW Group, a leading brand with strong
achieving greater sales than the previous fiscal year. As a
sales in China, will make a significant contribution to the
result of these improvements, in the fiscal year under
future expansion of our business. After China, we are
review, the overseas sales ratio accounted for 26.3% of
thinking of other markets including BRICs nations as our
the consolidated net sales, an increase of 4.9 percentage
new target markets.
Indonesia (P.T. Astra Daihatsu Motor)
Malaysia (Perodua Group)
Myvi〈1,300cc/1,000cc〉
Xenia VVT-i〈1,300cc/1,000cc〉
6
Car building that can share
a sense of values
Jun Nagata, Executive Officer (in charge of Styling)
Hypothetically, even young women and the elderly generation, who appear to be totally different groups of people
at first glance, may share the same values: they both
want cars that are easy to drive, want to use them for
short trips in the neighborhood rather than long trips, and
they emphasize a concern for safety.
To give a more concrete example, the Tanto, which
was commercialized with a concept of being a “happy family space”, is popular among mothers with young children
because it provides a spacious interior, whereas the Tanto
Custom is supported by young men who want to use the
spacious car space for their leisure activities and hobbies.
At first glance, even though two groups have different
attributes, they often share a lot in their sense of values.
We think that Daihatsu’s way of building cars that
allows sharing of a sense of values among users is a universal method. We will offer cars at lower prices to developing countries where motorization will be progressing
Daihatsu, as a compact car specialist, believes that the
from now, whereas in countries where the income level is
real fun of building cars lies in building compact cars. By
high we will offer added values of enjoyment and luxury.
building cars that are compact yet fun, compact yet spa-
By carefully monitoring which life stage the customers in
cious and compact yet dynamic, we add something that
the countries are at, we will be able to introduce cars that
is at variance with the cars’ compact size, which surprises
offer a lifestyle that’s one step ahead of their current life
and delights customers and hopefully increases the num-
stage, and then our demerits as a latecomer will surely be
ber of Daihatsu fans. We also want to share with our cus-
eliminated. Also, in whatever country we produce and sell
tomers a sense of value, or the ”benefit.” Compact cars
cars, we still want to build cars that convey the distinctive
can be built from less material and run on less energy. We
quality of “Daihatsu of Japan.”
want to share this sense of value, or the “benefit” that
compact cars have of minimizing
the environmental impact.
The majority of Daihatsu car
owners are women. The Move and
Tanto are valued mainly by female
customers as partners, and are
loved so much that some customers even give their cars pet
names. But we are not building cars
for a target market of women only.
We are aiming to build cars targeting particular groups of people who
share the same values.
Copen〈Overseas 1,300cc/Domestic 660cc〉
7
<Close Up>
Research and Development
Daihatsu’s unique technology achieved by specializing in
compact car applications
“Super Intelligent Catalyst” that
dramatically cuts the amount of
precious metals
the amount of precious metals to one quarter of that
Cars have a catalyst onboard that purifies exhaust gases.
standard in automotive catalysts, will make a substantial
The main components of an exhaust gas catalyst are pre-
contribution to preserving the environment, saving
cious metals such as palladium, rhodium and platinum.
resources and increasing Daihatsu’s cost competitive-
used for conventional catalysts because the catalyst selfregenerates.
This technology, which can become a new global
When purifying exhaust gases with a catalyst, the
ness. We already began installing the Super Intelligent
problem was that the catalyst deteriorated due to the
Catalyst in our cars in 2005.
heat of exhaust gas. This is particularly a problem with
Comparison of precious metal conditions in vehicle life time
the compact car in which the comparatively high-revving
engine produces a hotter exhaust gas that in turn makes
Nano-level
compound
an extremely severe operating environment for the cataSuper
Intelligent
Catalyst
lyst. Furthermore, in the compact car, already a category
subjected to fierce price competition, it is not easy to
Perovskite-type
ceramics
increase the amount of precious metals used. That is why
Precious
Metal
the Super Intelligent Catalyst could only be developed by
Segregation of
1-3 nm palladium
particles
Regenerated at
nano-level
Self-regeneration
Oxidative atmosphere Reductive
(Initial stage)
atmosphere
Oxidative
atmosphere
Time
Daihatsu, a company that as a compact car manufacturer
most strongly felt the necessity for such a technology.
The Super Intelligent Catalyst, which was born
Conventional
Catalyst
through developments in nanometer units, can reduce
Conventional
Enlargement Further enlargement
ceramic material of precious metal and deterioration
New CVT delivers the ample performance demanded of the mini vehicle
technology, a technology that no other company has
In recent years, the CVT (Continuously Variable
simplify the structure, the new CVT was born as an opti-
Transmission) has increased in popularity in Japan’s car
mal technology for mini vehicles. This is not simply a case
market, thereby supporting improved fuel efficiency.
of downsizing technology employed in larger vehicles, but
employed due to concerns for the burden on the belt.
Combined with the adoption of the planetary gear to
The CVT is said to be effective for fuel efficiency and
of revising technology from the ground up, from the view-
smooth driving performance. When combined with the
point of the compact car. This new CVT was developed
high-revving engine of a mini vehicle, however, the cen-
from the root of our own technological strength. We start-
trifugal force developed in the CVT’s belt, responsible for
ed installing the system for the first time on the new mini
the variable transmission function, causes power loss.
passenger car Sonica launched in June 2006.
We needed to develop a technique that maintains suf-
Working Principle of CVT
ficient engine power delivery while maximizing the merits
Pulley
System” whereby a speed reduction gear is placed before
the power from the engine is transmitted to the CVT belt
1
and the system provides increased torque with
Power input
from engine
(Speed ratio to
engine speed:
100%)
Reduction gear (for speed reduction/
Reduction gear (rotation reversing)
Power input
(Speed ratio to
engine speed: 70%)
from engine
decreased rotational speed through the belt. By thoroughly assessing the power delivery and belt durability,
3
Daihatsu succeeded in the practical application of this
4
(Speed ratio to
engine speed:
100%)
1
Power output to tires
2
8
Newly Developed CVT
Conventional CVT
of the CVT. Daihatsu adopted an “Input-speed Reduction
Torque
converter
Power output to tires
2
3
Belt
Belt
Speed reduction/
rotation-reversing shaft
4 shafts
3 shafts
Compact reduction gear on the input shaft side eliminates need for conventional
reduction/reversal shaft
A new answer for the mini vehicle
engine takes shape
engine into four factors: it must ensure excellent fuel efficiency, low exhaust emissions, good power delivery, and
be both lightweight and compact. Then we asked our-
Miki Ibaraki, General Manager,
Engine Engineering Div. No.1
selves what kind of engine would succeed in all four categories. The answer lay in the scrupulous attention we pay
to combustion technology, which is the heart of the
engine technology itself.
The KF engine breaks the mold of conventional mini
vehicle engines by employing a long stroke and compact
combustion chamber.
To improve combustion efficiency we made the combustion chamber more compact and optimized the flow
of the air-fuel mixture within the cylinder. We also minimized mechanical losses. The result is an engine fuel consumption improvement of approximately ten percent over
conventional engines.
In addition, the use of an aluminum cylinder block and
numerous resin components makes the KF the lightest
“For the very reason that it’s a compact car, we want to
engine* in its class.
We started installing the KF engine in the Esse in
improve its environmental efficiency even more.”
“Because it’s a mini vehicle that anyone can drive, we
December 2005 and it is now the main engine to be
want to make it even easier to drive…”
installed in the mini vehicles we sell in Japan. The KF
After thoroughly studying the attributes of an engine
best-suited for use in a mini vehicle, we developed the new
KF engine—it is the Daihatsu’s answer to these demands.
We categorized the demands on the compact car
KF Engine
engine, which will be working as the heart of Daihatsu
cars for a long time from now on, is fully prepared for the
performance demands of the next generation.
*660cc displacement mini vehicle class engine (as of October 2005)
Esse〈660cc〉
9
Corporate Governance / Compliance
Basic approach
With the objective of developing our business through contributing to society as a basic principle, Daihatsu is looking to create new values demanded by the times, while aiming to be a “highly appealing, conscientious business”
that earns the empathy and respect of society. Placing our customers first, we intend to enhance our corporate
governance by following a basic policy of continuing to be a business that is of value to society, our customers, our
shareholders, business partners and company employees.
Business execution, audit and supervision system
From June 2006, to deal with the globalization of our business regions, reinforce corporate governance and reform
our management structure, we introduced a new management system that involved reducing the number of directors, appointing new executive officers and adopting a functional business group system. Reducing the number of
directors will revitalize the board of directors meetings and speed up the managerial decision-making process while
appointing new executive officers will further strengthen and accelerate business execution functions. Functional
business groups, headed by executive vice presidents and other directors, were organized with the aim of achieving
a clear delineation of responsible parties and realizing an organization that follows through on missions by concluding business operations on an individual business group basis, and with the intention of utilizing personnel strategically through the broader organizational structure.
Daihatsu’s major decisions on business operations are made in the board of directors meetings (in principle,
held once per month) and vice presidents’ meetings (in principle, held once per week). The board of directors meetings supervise the directors and executive officers for the execution of duties. In addition, the company’s corporate
auditors audit the execution of duties of the directors by holding audit committee meetings generally once every
three months and by participating in important meetings such as board of directors meetings and vice presidents’
meetings based on the auditing policy and auditing plan.
Respect for the stakeholders’ position
Daihatsu publishes its “Policy on Business Conduct” regarding our obligatory conduct as a corporation, and the
basic attitude and conduct policies of employees concerning their relationship with society, business partners and
affiliate companies. By doing so, we promote thoroughness of compliance within the company.
Further, Daihatsu considers environmental problems as one of the foremost issues of management. We will
continue to place the policy of “Contributing to Society with Compact Cars” that impose less burden on the environment and are more earth friendly as a crucial element of our environmental policy. In 1996, in an effort by top management to deal with environmental problems, we established a “Daihatsu Environmental Committee” consisting of
our top management as its members and placed under the committee three environmental subcommittees who
are in charge of products, production and recycling. These subcommittees set topics and goals for environmental
promotion every fiscal year. Details of these activities are disclosed every year in the Daihatsu Group Environmental
Report.
Based on a fundamental recognition that social contribution activities are the social responsibility of a corporation, we are actively involved in regional social activities, social welfare activities, support for cultural and sporting
activities and support for volunteer activities.
Basic approach and development situation regarding the internal control
system
Daihatsu’s internal control system is set on the axis of a company that adopts a corporate auditor system under the
Corporate Law of Japan, which involves the supervision and the decision-making on business execution by the
board of directors, and the auditing by the corporate auditors and audit committee. Daihatsu carries out auditing
10
regularly through the internal auditing department, checks internal operating activities and various systems against
the Company’s management policies and carries out inspections and evaluations from a fair and just position.
Additionally, besides being audited by independent auditors, our corporate auditors exchange opinions with them
as needed.
In September 2003, with the aim of improving business value, assuring reliability of financial reports and compliance with laws and regulations, we established the Internal Control Committee with an executive vice-president as
chairman. The Internal Control Committee, besides being responsible for assuring observance of the U.S. SarbanesOxley Act as a member of the Toyota Group, is responsible for internal control development and confidential information management, including private information about individuals, in an effort to upgrade and expand the
Group-wide internal control system.
In the fields that require individual controls, risk management and compliance, we conduct thorough control
activities by means of various committees such as the Export Management Committee, Daihatsu Safety and Health
Committee, Daihatsu Environmental Committee, Joint Labor-Management Conference and Functional LaborManagement Coordinating Committee, in addition to the control activities as a part of essential operations of each
department. Furthermore, for the Company’s subsidiaries and other Group companies, we foster an internal control
environment through the affiliated-company management system.
Also, in 2002 we established “Employees’ Voice” (Helpline) system whereby an employee can offer pertinent
information in anonymity, in the event of a threat of conduct contrary to the law, social ethics, human rights, internal company regulations, etc. in the workplace, or when such conduct has already taken place. The system enables
action to be taken early to prevent such occurrences or to respond quickly in the event of such an occurrence.
The various arrangements outlined above are positioned as means of achieving the “System for Assuring
Appropriate Operations” stipulated under the Corporate Law of Japan. In May 2006, based on the requirements of
the Corporate Law, the board of directors of the Company made a resolution that included the current status of
these arrangements.
Daihatsu Internal Control System
Monitor
Audit Committee
meeting
Report
Board of directors
meeting
Policy
Various committees
Export,
Environmental, etc.
Report
Internal Control Committee
•Chairman: Executive Vice President
•Regular committee meetings are held twice a year.
•An additional meeting can be held if needed.
•All matters related to internal control are covered.
Instruct
Report
Report
Each division of
the Company
Instruct
Report
Control center
(department responsible for
control of each affiliated company)
Instruct
Report
Report
Report
Hearing
Hearing
Affiliated companies
Inform
Audit division
Cooperate
Investigate
Corporate Auditors audit
11
Recent Topics
Domestic Sales
Jun.
2004
Daihatsu / Toyota cooperative development project starts sales of Boon (Daihatsu) and Passo (Toyota).
Aug.
2004
Sales of a mini passenger car model, Move Latte begin.
Nov.
2004
Full model change introduced for Mira Gino, mini passenger car.
Dec.
2004
Full model change introduced for Hijet Cargo, mini commercial vehicle.
May
2005
Full model change introduced for Atrai Wagon, mini passenger car.
Sept.
2005
We start a nationwide deployment of the DAIHATSU Café PROJECT, designed with the aim of building sales outlets
appealing to female customers as a part of our customer satisfaction (CS) improvement initiative.
Nov.
2005
Daihatsu launches the Mira Selfmatic, a self-operatable welfare vehicle, which is the first mini vehicle of its kind to
allow the boarding of a wheelchair into the driver’s seat position.
Dec.
2005
The new mini passenger car Esse is launched.
Jan.
2006
Daihatsu and Toyota launch a new compact SUV (Daihatsu’s Be-go and Toyota’s Rush). Daihatsu begin supplying
Toyota’s Rush on an OEM basis.
May
2006
The new compact passenger car Coo is launched.
Jun.
2006
The new mini passenger car Sonica is launched.
Overseas Operations
May
2004
Toyota begins exports of Avanza, produced on consignment basis by ADM in Indonesia, to Thailand.
Oct.
2004
Perodua commences consigned production of Toyota’s Avanza in Malaysia.
Nov.
2004
Exports of compact passenger car Sirion (called the Boon in Japan) start.
Apr.
2005
Daihatsu announces that ADM increases production capacity to 114 thousand units annually.
May
2005
Myvi launched as National Car in Malaysia.
Oct.
2005
Daihatsu signs a technical license agreement for small multi-purpose vehicles with FAW Jilin Auto of China.
Dec.
2005
Complete the increase of production capacity to 114 thousand units annually at ADM.
Feb.
2006
Start exporting our new overseas strategic model, the Terios (called the Be-go in Japan).
Apr.
2006
Establish a new joint venture company in China known as FAW Daihatsu (Jilin) Body Parts Co., Ltd. (FDJB).
Sonica〈660cc〉
12
Move Latte〈660cc〉
Environment, Technology, Plants
Jul.
2004
Daihatsu achieves practical application of the Rapid Catalyst Activation System, the world’s first ion-sensing ignition
control system.
Nov.
2004
Daihatsu / Toyota jointly develop the world’s first water-borne 1 coat solid coating process and Japan’s first
water-borne 3 wet metallic coating process, environmental impact reducing water-borne paints that are being used at
Daihatsu Auto Body Co., Ltd. Oita (Nakatsu) Plant.
Dec.
2004
Daihatsu Auto Body Co., Ltd. Oita (Nakatsu) Plant begins operations.
Apr.
2005
In the fiscal 2005 automobile safety assessment report, Mira Gino* became the first mini vehicle to win a Level 4 rating
for the pedestrian head protection features test. *The trial model that Daihatsu proposed
Aug.
2005
Launch the Hijet Cargo Hybrid, the first hybrid mini commercial vehicle.
Oct.
2005
Succeeded in developing the “Super Intelligent Catalyst” with self-regeneration of all three kinds of precious metals.
Nov.
2005
Successfully develop the new KF engine for mini vehicles with improvements in all areas of environmental efficiency,
power and quietness.
Dec.
2005
Start deployment of our “Intelligent Catalyst” that regenerates the precious metal palladium, in the pharmaceutical
manufacturing field.
Jun.
2006
Launch new CVT (Continuously Variable Transmission) for mini vehicles.
Jun.
2006
Changed the company name of our wholly-owned subsidiary, Daihatsu Auto Body Co., Ltd., to Daihatsu Motor Kyushu
Co., Ltd.
Sirion〈1,300cc/1,000cc〉
Terios〈1,500cc/1,300cc〉
Self-operatable mini vehicle for welfare purpose Mira Selfmatic〈660cc〉
Vehicle with driving assistance device
13
Consolidated Six-Year Summary
Years ended March 31
Thousands of*1
U.S. dollars*1
Millions of yen
2006
For the year:
Net sales
Cost of sales
Selling, general and
administrative expenses
Operating income
Net income
Capital investment
Depreciation
R&D expenses
2004
2003
2002
2001
2006
¥993,613
759,644
¥969,574
760,176
¥943,938
729,672
¥998,785
768,832
$11,475,035
9,297,345
217,633
40,116
25,871
101,795
51,486
40,354
205,509
28,358
17,280
73,350
46,237
33,843
188,992
20,694
14,776
65,070
49,199
33,259
195,097
18,599
9,310
69,087
40,507
35,023
194,152
33,423
15,650
57,271
42,148
33,439
1,760,092
414,051
285,376
970,798
517,357
406,940
¥60.26
—
9.00
¥40.16
38.87
7.00
¥34.40
32.28
6.00
¥21.80
20.49
7.00
¥36.64
34.37
7.00
$0.66
—
0.10
¥1,027,228
303,306
28,404
33,011
¥884,937
240,545
28,404
29,562
¥795,273
221,644
28,404
27,543
¥755,307
187,483
28,404
27,566
¥759,501
184,265
28,404
25,804
¥766,917
192,422
28,404
22,265
$08,744,598
2,581,993
241,800
3.5
12.3
29.5
3.1
11.2
27.2
2.2
8.4
27.9
2.0
7.9
24.8
1.2
4.9
24.3
2.2
9.0
25.1
¥1,347,972 ¥1,176,245
1,092,159
917,915
206,758
48,638
33,523
114,039 *2
60,773
47,803
Amounts per share (in yen and U.S. dollars):
Net income — Basic
¥78.14
Net income — Fully diluted
—
Cash dividends
12.00
At year-end:
Total assets
Total shareholders’ equity
Common stock
Number of employees
Ratios (%):
Return on assets
Return on equity
Equity ratio
2005
Notes: *1. U.S. dollar amounts are translated from yen at the rate of ¥117.47=U.S.$1, the approximate exchange rate prevailing on the Tokyo Foreign Exchange Market
on March 31, 2006.
*2. Excluding assets for lease.
Consolidated Unit Sales
Units
2006
Daihatsu Vehicles
Domestic
550,738
Mini Vehicles*1
Compact Vehicles
13,039
Subtotal
563,777
Overseas
132,056
Mini Vehicles*2
Compact Vehicles
154,652
Subtotal
286,708
Total
850,485
Toyota Vehicles
Consigned Domestic
187,372
Vehicles
Overseas
95,452
OEM Vehicles
9,184
Total
292,008
Total
1,142,493
Parts for Overseas Production (sets)
8,220
Consigned Engines
368,616
2005
2004
2003
2002
2001
532,695
17,998
550,693
504,720
8,219
512,939
466,336
12,106
478,442
477,334
20,892
498,226
490,867
34,953
525,820
164,453
103,370
267,823
818,516
166,629
64,264
230,893
743,832
145,613
69,145
214,758
693,200
16,611
55,296
71,907
570,133
18,069
62,734
80,803
606,623
177,635
63,865
2,474
243,974
1,062,490
9,400
256,631
77,433
7,038
13,380
97,851
841,683
9,580
184,240
78,986
−
19,875
98,861
792,061
21,550
197,244
93,603
−
33,756
127,359
697,492
136,850
272,525
141,724
−
41,332
183,056
789,679
131,080
365,954
Notes: *1. In Japan, vehicles with engine displacement of 660cc or less are categorized as mini vehicles.
*2. Overseas, vehicles that are 3.4m or less in length and 1.48m or less in breadth are categorized as mini vehicles.
14
Consolidated Unit Sales
Net Income &
Net Income to Net Sales Ratio
Net Sales & Operating Income
(Thousands
of units)
(Billions
of yen)
1,200
1,500
(Billions
of yen)
50
1,000
(Billions
of yen)
(%)
40
3
40
30
2
1,000
800
30
20
600
20
1
500
400
10
10
200
0
0
02
03
04
05
06 (FY)
Domestic
Overseas
Consigned vehicles (domestic)
Consigned vehicles (overseas)
OEM vehicles
03
04
05
Europe
Others
¥43.0 (3.2%)
¥37.5 (2.8%)
0
02
03
04
05
06 (FY)
Net income
(left scale)
Net income to net sales ratio (right scale)
Net Income per Share (Basic) &
Cash Dividends per Share
Total Assets
(Yen)
(Billions
of yen)
80
20
1,200
60
15
(Yen)
(Billions of yen)
0
06 (FY)
Net sales
(left scale)
Operating income (right scale)
Consolidated Net Sales by Region
(FY 2006)
0
02
1,000
800
Asia
¥273.4
(20.3%)
40
10
20
5
600
400
200
Japan
¥993.9 (73.7%)
0
0
02
03
04
05
Net income per share (Basic)
Cash dividends
Net Sales ¥1,347.9 billion
02
03
04
05
06 (FY)
(left scale)
(right scale)
Return on Assets & Return on Equity
(%)
15
0
06 (FY)
Capital Investment & Depreciation
(Billions
of yen)
(%)
350
30
300
(Billions
of yen)
120
100
250
10
80
200
25
60
150
5
40
100
20
50
0
0
02
03
ROE
ROA
04
05
06 (FY)
20
02
03
04
05
06 (FY)
Total shareholders’ equity (left scale)
(right scale)
Equity ratio
0
02
03
04
05
06 (FY)
Capital investment
Depreciation
15
Management’s Discussion and Analysis
Scope of Consolidation and Application of
Equity Method
In fiscal 2006, covering the period from April 1, 2005 to March
good sales performance of the Rush (Daihatsu’s Be-go) that
we commenced supplying to Toyota in January 2006.
As mentioned in the above, as a result of efforts to
31, 2006, Daihatsu Motor Co., Ltd., had a total of 59 consoli-
expand sales and bolster our product line-up, the Daihatsu
dated subsidiaries, comprised of 35 domestic sales sub-
Group’s domestic unit sales of mini and compact vehicles
sidiaries, 6 domestic manufacturing subsidiaries, 8 other
increased 13,084 units, or 2.4%, to 563,777 units. Overseas
domestic subsidiaries and 10 overseas subsidiaries. The
unit sales increased 18,885 units, or 7.1%, to 286,708 units.
Company accounted for 21 companies by the equity method,
Shipments of consigned cars grew 41,324 units, or 17.1%, to
including 9 domestic sales companies, 7 other domestic
282,824 units, while OEM cars jumped 6,710 units, or 271.2%,
companies and 5 overseas companies.
to 9,184 units. Consolidated unit sales, therefore, climbed
80,003 units, or 7.5%, to 1,142,493 units. Shipments of parts
Overview of Consolidated Performance
for overseas production amounted to 8,220 sets, down 1,180
During the fiscal year under review, despite unstable factors
sets, or 12.6%, from the prior fiscal year. Shipments of con-
such as a sharp rise in prices of raw materials and crude oil,
signed engines rose 111,985 units, or 43.6%, to 368,616 units.
the Japanese economy did exhibit a transition toward a mild
The total number of vehicles produced amounted to
recovery through private demand initiatives thanks to an
1,185,583 units, an increase of 84,306 units, or 7.7%, from the
improvement in terms of corporate earnings recovery and
last fiscal year.
employment conditions.
In the automobile industry, new vehicle registrations in
As for the consolidated business performance for the fiscal year under review, consolidated net sales increased
Japan declined year-on-year for three consecutive years due
¥171.7 billion, or 14.6%, to ¥1,347.9 billion, operating income
to a decrease in registrations for regular-sized passenger
increased ¥8.5 billion, or 21.2%, to ¥48.6 billion, and net
cars. On the other hand, owing to the launches of new mod-
income resulted in ¥33.5 billion, a year-on-year gain of ¥7.6
els and model changes, mini vehicle registrations increased
billion, or 29.6%.
for the third year in a row, reaching a new record level for the
first time in six years. As a result, the domestic market as a
Regional Market Information
whole remained at the same level as the previous year.
Japan
Meanwhile, although the export market suffered a downturn
During the fiscal year that ended March 2006, in addition to
in Asia, Europe and Oceania, growth in North, Central and
rising demand in the mini vehicle market due to the launches
South America, and the Middle East and Africa regions fos-
of new models and model changes from each automobile
tered a year-on-year increase.
manufacturer, the popularity of the mini and compact vehi-
In such a business climate, domestic sales of the Group’s
cles continued to rise amid sharp increases in the price of
core mini vehicle models, the Mira, Move and Tanto, were
gasoline and concern for the environment. Consequently, the
favorable, and the launches of the Atrai Wagon in May 2005
total mini vehicle sales by all makers in Japan for the fiscal
and the Esse mini passenger car in December also con-
year under review climbed to a new record high of 1,948,362
tributed to the healthy sales trend. As a result, Daihatsu’s
units, a 3.6% increase over the previous fiscal year.
annual share of the mini vehicle market in Japan surpassed
Daihatsu made a full model change of the Atrai Wagon, a
30% for the second consecutive year, and both unit sales and
mini passenger car, in May 2005 and launched the new mini
market share posted new record highs.
passenger car Esse in December. In addition, combining
Overseas, excellent sales in Malaysia of the Myvi, a
Daihatsu and Toyota’s automobile planning powers,
National Car that was launched in May 2005, as well as an
Daihatsu’s new compact SUV Be-go and Toyota’s Rush went
increase in the sales of the Sirion (called the Boon in Japan) in
on sale in January 2006. Daihatsu supplies the Rush on an
almost all regions, resulted in better performance than the
OEM basis to Toyota. Then, in May, we began selling the Coo,
previous year.
a new compact passenger car with an original Daihatsu
The Group’s consigned car business for Toyota did well
and increased from the previous fiscal year reflecting the
sales of the compact passenger car bB, whose production
design and equipment, but which shares its main components with Toyota’s bB.
Consolidated unit sales for the year under review
started in Japan in December 2005, as well as a large
amounted to 760,333 units, an increase of 29,531 units, or
increase in the Avanza in Malaysia. Our OEM car business
4.0%, compared with the previous fiscal year.
also increased from the previous fiscal year thanks to the
16
Total unit sales of mini vehicles that can be used for wel-
In the fiscal year under review, as a result of increased
fare purposes amounted to 9,249 units, edging down 2.5%
production in Malaysia that made up for a decline in sales in
from fiscal 2005. Of this amount, Daihatsu sold 4,278 units,
the Indonesian market, overall sales in Asia rose ¥90.2 billion
which is a 1.4% increase from the previous fiscal year.
year-on-year, or 49.2%, to ¥273.4 billion.
Daihatsu continues to expend its efforts in this market, and
has maintained a large share since 1999. In the fiscal year
<Indonesia>
under review, our market share was 46.3%.
In contrast to the high proportion of passenger cars in
Also, the Hijet Cargo Hybrid, which went on sale in
August 2005, acquired in February 2006 a type designation as
the only commercially available hybrid mini vehicle.
Malaysia and pickup trucks in Thailand, vehicles seating a
large number of people dominate the Indonesian market.
In calendar year 2005, although total unit sales in
Overseas Market
Indonesia increased 10.5% from the previous calendar year
The overseas operations of the Daihatsu Group accounted for
to 534 thousand units*, hitting a new record, sales declined
approximately 26% of consolidated net sales. In the fiscal
in the latter half of the year due to a sharp rise in gasoline
year under review, our overseas consolidated unit sales
prices and interest rates.
amounted to 382,160 units, an increase of 50,472 units, or
In the fiscal year under review, there was continuing high
15.2%, from the previous fiscal year. In fiscal 2006 in
demand among local consumers for the Daihatsu-Toyota
Malaysia, sales were strong for the Myvi and consigned pro-
joint-development cars—the Xenia and Avanza—that were
duction of the Toyota Avanza also expanded. As a result, we
launched in January 2004. On the other hand, due to the
had an increase in sales in our core Asian market, improving
downturn in the market during the latter half of the year,
our overseas sales by ¥102.5 billion year-on-year, or 40.8%,
sales of the Zebra and Taruna have declined. Meanwhile,
to ¥353.9 billion.
with a view to market recovery, we increased ADM’s annual
Europe
We export completely-built-up (CBU) units to this market,
production capacity to 114 thousand units in December 2005
(on a double-shift operation).
*Data from the Association of Indonesian Automotive Industries (GAIKINDO)
principally to Germany, Italy, the United Kingdom and the
Netherlands. Exports to Europe of the compact passenger car
Sirion (called the Boon in Japan) that began in November
2004 significantly contributed to sales, resulting in a large
increase in net sales of ¥8.3 billion from the previous fiscal
year, or 24.0%, to ¥43.0 billion.
In February 2006 we began exporting our global strategic
model, the new Terios (called the Be-go in Japan). Sales have
surpassed the monthly sales target of 3,000 units, proving to
be an excellent start. The new Terios has received the 2006
Red Dot Design Award for superior product design from the
Design Zentrum Nordrhein Westfalen in Germany.
<Malaysia>
Malaysia stands out for its automobile market that is approximately 75% passenger cars (excluding multi-purpose vehicles) among Southeast Asian nations where commercial
vehicles usually dominate the market. In calendar year 2005,
unit sales hit a new record high and totaled 551 thousand
units*, surpassing by 13.0% the previous year’s record of 488
thousand units thanks to the strength of new car launches by
various automobile manufacturers and a robust economy.
Another unique feature of the Malaysian market is the
existence of National Cars which are produced by govern-
Asia
ment-licensed manufacturers and account for a major share
Our Asian operations mainly consist of manufacturing and
of the car market. Our joint-venture company, Perodua
selling vehicles locally in Malaysia and Indonesia. The
Manufacturing Sdn. Bhd., produces such National Cars. In the
Indonesian market was sluggish on account of sharp rises in
fiscal year under review, the Boon-based National Car known
gasoline prices and interest rates, and although ADM, our
as the Myvi recorded excellent sales. Consigned production
local subsidiary, suffered declining sales of the Zebra and
of Toyota’s Avanza also expanded, contributing to Perodua’s
Taruna, sales of the Xenia and Toyota’s Avanza increased our
large improvement in earnings. Assuming further promotion
share in the total market. Exchange rates remained steady,
of free competition in the Malaysian market, we established a
which we believe is an indication of a firm economy. The
production capacity of 200 thousand units per year of 2005
slow market situation, therefore, is considered to be only
(on a double-shift operation).
temporary. Sales of the Myvi, a National Car in Malaysia, con-
*Data from the Malaysian Automotive Association
tinued at a high level, and consigned production of Toyota’s
Avanza also continued to expand favorably.
17
<China>
sales ratio increased 3.0 percentage points year-on-year to
China is one of the markets in the world that has the greatest
81.0%. Selling, general and administrative expenses
growth potential. In calendar year 2005, overall sales reached
decreased ¥10.8 billion, or 5.0%, to ¥206.7 billion.
5,758 thousand units*, rising 13.5% above the previous year’s
Other Income (expenses)
record high of 5,072 thousand units. In October 2005 we
In addition to an increase in equity in earnings of affiliates of
signed a technical license agreement for a small multi-pur-
¥0.6 billion, or 27.8%, thanks to factors such as income
pose vehicle with FAW Jilin Auto. We are targeting the first
growth by Perusahaan Otomobil Kedua Sdn. Bhd., a company
half of 2007 to develop, manufacture and distribute, under
accounted for by the equity method, there was a ¥1.1 billion
the Daihatsu brand, a new passenger car model based on the
gain on exchange rate, which resulted in a gain of ¥2.2 billion
small multi-purpose vehicle jointly developed with Toyota.
in other income (expenses) compared with the previous fiscal
And in April of this year we established FAW Daihatsu (Jilin)
year.
Body Parts Co., Ltd. (FDJB), as a joint venture with FAW Jilin
Auto, with a view to securing our operations base in China.
*Data from the China Association of Automobile Manufacturers
Income Taxes
Due to income before income taxes and minority interests
increasing by ¥19.9 billion, income taxes increased by ¥9.6 bil-
Performance Analysis
lion year-on-year, or 96.4%, to ¥19.7 billion.
Comparing consolidated performance for the fiscal year that
Minority Interests in net income of consolidated
ended March 31, 2006 with the previous fiscal year, net sales
subsidiaries
grew 14.6% to ¥1,347.9 billion, operating income rose 21.2% to
Minority interests in income of consolidated subsidiaries
¥48.6 billion and net income increased 29.6% to ¥33.5 billion.
increased ¥2.6 billion year-on-year, or 95.1%, to ¥5.3 billion,
Comparing operating income with the prior fiscal year,
positive factors contributing to an increase in operating
mainly due to an increase in net income by Perodua in
Malaysia.
income totaled ¥43.6 billion. Of that amount, sales and
changes in the structure of our vehicle lineup contributed
Financial Position Analysis
¥31.7 billion, a gain on exchange rate contributed ¥1.5 billion,
Comparing the financial position of the Group on March 31,
and a reduction in cost of sales contributed ¥10.4 billion.
2006 with a year earlier, total assets amounted to ¥1,027.2
Negative factors, including increases in various expenses,
billion, up ¥142.2 billion; total liabilities were ¥683.1 billion, up
totaled ¥35.1 billion. As a result, operating income increased
¥71.2 billion; and shareholders’ equity was ¥303.3 billion, a
by ¥8.5 billion year-on-year.
gain of ¥62.7 billion.
Net Sales
Cash and Cash Equivalents
In Japan, Daihatsu recorded growth in net sales thanks to the
Net cash provided by operating activities amounted to ¥64.2
continued sales strength of our core mini vehicle models, the
billion mainly based on income before income taxes and
Mira, Move and Tanto, and the well-received introductions of
minority interests of ¥58.6 billion. Net cash used in investing
the new mini passenger car Atrai Wagon in May 2005 fol-
activities amounted to ¥68.8 billion including payments for
lowed by the Esse mini passenger car in December.
acquisition of property, plant and equipment of ¥80.9 billion.
Overseas, the National Car launched in May 2005 in Malaysia,
Net cash provided by financing activities amounted to ¥0.3
the Myvi, recorded strong sales, and sales of the Sirion
billion mainly due to a ¥6.0 billion increase in loans and
(called the Boon in Japan) increased in almost all markets.
debts, despite ¥4.6 billion in dividends paid.
Our consigned car business progressed favorably due to the
As a result of the above, cash and cash equivalents at
sales of the compact passenger car bB, whose production
the end of the year under review was ¥68.2 billion, a
started in Japan in December 2005 as well as a large increase
decrease of ¥3.1 billion from the previous fiscal year-end.
in sales of the Avanza in Malaysia. Our OEM car business also
Trade Notes and Accounts Receivable
performed well such as the good sales performance of the
Reflecting the expansion in unit sales, in line with sales
Rush (Daihatsu’s Be-go) that we commenced supplying in
growth, trade notes and accounts receivable advanced ¥31.5
January 2006. As a result of these factors, net sales increased
billion to ¥251.1 billion.
by ¥171.7 billion, or 14.6%.
Property, Plant and Equipment, at Cost
Operating Expenses
Due to a ¥114.0 billion increase (excluding lease assets) for
Cost of sales rose ¥174.2 billion, or 19.0%, to ¥1,092.1 billion
capital investment accompanying new product developments
along with the growth in net sales. The cost of sales to net
and bolstering production capacity, and a ¥60.7 billion
18
decrease for depreciation, net property, plant and equip-
Risks concerning changes in product price and market
ment, increased ¥64.3 billion year-on-year to ¥436.2 billion.
evaluation
Investments in Securities
In the automobile industry, business performance can be
Variance of the estimate added ¥46.1 billion to the value of
temporarily affected when a drop in production price and
investments in securities, which increased ¥51.7 billion, to
other adverse situations are caused by an oversupply situa-
¥124.6 billion.
tion and intensified price competition due to the introduction
Trade Notes and Accounts Payable
Higher procurement levels due to an increase in production
units resulted in trade notes and accounts payable expanding
¥36.3 billion to ¥282.1 billion.
Corporate Bonds and Debt
Although long-term debt declined ¥14.0 billion, a ¥20.4 billion
increase in short-term bank loans resulted in a total debt of
¥149.7 billion, a ¥6.3 billion increase over the previous fiscal
year.
The Group is committed to reducing its interest-bearing
debt by seeking to improve the Group’s earnings performance as well as by increasing the capital efficiency within the
Group based on a cash pooling system that includes the
Company and its 42 domestic consolidated subsidiaries.
Total Shareholders’ Equity
In addition to ¥33.5 billion in net income, net unrealized holding gains on securities increased ¥27.4billion to ¥54.2billion.
Overall, total shareholders’ equity increased ¥62.7 billion to
¥303.3 billion.
Business Risks
of comparable models at lower prices from other companies.
Moreover, although new models are introduced responding
to the demand trends of consumers, the Group’s business
performance can be adversely affected if the market’s evaluation of our new model is lower than expected or when evaluation of our current model undergoes a sharp decline.
Risks concerning a change in product cost
We purchase large volumes of raw materials and parts to manufacture our products, and these are subject to fluctuations in
supply and demand in world markets, changes in the economic climate of the producer nations, increases in distribution
costs and other factors that result in purchase price increases.
This, in turn, raises the Group’s cost of production, which may
adversely affect the Group’s business performance.
Risks concerning fluctuations in exchange rates
Fluctuations in exchange rates vary the yen equivalents of
the Group’s foreign currency sales to overseas markets as
well as the yen equivalents of the foreign currency purchase
amount and other figures in the foreign currency financial
statements of overseas subsidiaries, which can adversely
affect the Group’s business performance.
Among the business performance and financial situation
Risks concerning changes in legal requirements
items stated in this annual report, the following are risks that
We conduct business based on laws and regulations related to
could have an important influence on the decision of share-
environmental matters, such as emissions control and auto-
holders. Further, although the report includes statements
mobile recycling, as well as on laws and regulations for busi-
pertaining to the future, these are based on the Group’s judg-
ness transactions and taxes in the countries where we are
ments as of the end of the fiscal year that ended on March
developing our business. Revisions of these laws and regula-
31, 2006.
tions may adversely affect the Group’s business performance.
Risks concerning changes in the economic climate
Political and social disturbances in Japan and major overseas
markets of the Group, such as Indonesia and Malaysia, bring
Moreover, the risks other than those stated in the above,
such as natural disasters, are also possibilities that seriously
affect the decisions of shareholders.
about changes in the economic climate which in turn can
affect the Group’s business performance. Further, the
Daihatsu Group, whose management strategy is to continue
concentrating its management resources on the compact car
business with the mini vehicle as the mainstay of the business, can be adversely affected in terms of business performance in the event of a trend in demand away from the
compact car in our major markets.
19
CONSOLIDATED BALANCE SHEETS
March 31, 2006 and 2005
Thousands of
U.S. dollars
Millions of yen
ASSETS
2006
2005
2006
Current assets:
Cash on hand and in banks (Notes 3 and 7)
Deposits (Notes 7 and 10)
Trade notes and accounts receivable (Notes 3 and 10)
¥
17,478
¥ 19,262
51,046
52,507
$
434,551
148,792
251,184
219,659
2,138,286
Inventories
69,464
66,552
591,340
Deferred tax assets (Note 13)
23,601
26,061
200,918
Other current assets (Notes 3 and 10)
46,479
43,636
395,672
Less allowance for doubtful accounts
(2,037)
(2,458)
(17,342)
Total current assets
457,219
425,221
3,892,220
124,619
72,849
1,060,865
Investments and other assets:
Investments in securities (Note 9)
Long-term loans receivable
2,277
2,236
19,390
Other assets (Note 13)
7,237
12,868
61,613
Less allowance for doubtful accounts
Total investments and other assets
(364)
(162)
(3,105)
133,770
87,791
1,138,764
Property, plant and equipment, at cost:
Buildings and structures (Note 3)
243,509
228,488
2,072,946
Machinery, equipment and vehicles (Note 3)
535,945
480,620
4,562,400
Land (Notes 3 and 6)
109,227
107,467
929,832
15,757
7,887
134,137
148,003
136,850
1,259,928
Construction in progress
Other
Total property, plant and equipment, at cost
Less accumulated depreciation
Net property, plant and equipment
Total assets
The accompanying notes are an integral part of these consolidated financial statements.
20
1,052,442
(616,204)
961,313
8,959,246
(589,389)
(5,245,631)
436,238
371,924
3,713,614
¥1,027,228
¥ 884,937
$ 8,744,598
Thousands of
U.S. dollars
Millions of yen
LIABILITIES, MINORITY INTERESTS AND SHAREHOLDERS’ EQUITY
2006
2005
2006
¥ 282,126
¥245,733
$2,401,694
132,121
111,663
1,124,729
Current liabilities:
Trade notes and accounts payable (Note 10)
Short-term bank loans and current portion of long-term debt (Note 3)
Current portion of bonds (Note 3)
Accrued income taxes
Other accounts payable and accrued expenses (Note 10)
—
100
—
7,773
8,914
66,177
117,819
99,496
1,002,978
Other current liabilities (Note 10)
48,645
53,146
414,108
Total current liabilities
588,487
519,053
5,009,687
Long-term liabilities:
Long-term debt (Note 3)
17,584
31,633
149,696
Accrued retirement benefits for employees (Note 12)
53,714
52,064
457,257
Other long-term liabilities (Note 13)
23,341
9,132
198,705
Total long-term liabilities
94,640
92,830
805,659
683,128
611,883
5,815,347
40,792
32,507
347,257
28,404
28,404
241,800
Total liabilities
Minority interests in consolidated subsidiaries
Contingent liabilities: (Note 4)
Shareholders’ equity:
Common stock:
Authorized—1,600,000,000 shares
Issued and outstanding—427,122,966 shares (2006)
427,122,966 shares (2005)
Additional paid-in capital
10,837
10,837
92,258
212,479
183,843
1,808,801
Net unrealized holding gain on securities
54,284
26,812
462,113
Foreign currency translation adjustments
(2,584)
(9,252)
(22,001)
(114)
(99)
(978)
Retained earnings
Treasury stock, at cost—
323,810 shares (2006)
311,142 shares (2005)
Total shareholders’ equity
Total liabilities, minority interests and shareholders’ equity
303,306
240,545
2,581,993
¥1,027,228
¥884,937
$8,744,598
21
CONSOLIDATED STATEMENTS OF INCOME
Years ended March 31, 2006 and 2005
Thousands of
U.S. dollars
Millions of yen
Net sales (Note 10)
2006
2005
2006
¥1,347,972
¥1,176,245
$11,475,035
1,092,159
917,915
9,297,345
255,813
258,329
2,177,689
Cost of sales (Notes 5 and 10)
Total gross profit before adjustment of profit on installment sales
Net change in deferred profit on installment sales
(416)
Gross profit
Selling, general and administrative expenses (Note 5)
Operating income
(579)
(3,545)
255,396
257,750
2,174,144
206,758
217,633
1,760,092
48,638
40,116
414,051
1,053
613
8,964
Other income (expenses):
Interest and dividend income
Interest expenses
(492)
Equity in earnings (loss) of affiliates
Other, net (Note 9)
Income before extraordinary items and income taxes
and minority interests
(569)
(4,195)
2,792
2,184
23,773
(1,631)
(2,767)
(13,887)
50,360
39,577
428,707
8,257
—
70,297
Extraordinary items:
Gain on sales of land
Subsidy for facilities
9
—
84
—
165
—
Advanced depreciation of property, plant and equipment
(9)
(123)
(84)
Loss on impairment of property, plant and equipment (Note 6)
—
(928)
—
Loss on disposal of property, plant and equipment
—
(25)
—
58,618
38,665
499,004
Current
15,556
16,925
132,433
Deferred
4,160
(6,888)
35,414
(5,377)
(2,757)
(45,780)
Compensation for transfer of property, plant and equipment
Income before income taxes and minority interests
Income taxes: (Note 13)
Minority interests in net income of consolidated subsidiaries
Net income
¥
33,523
¥
25,871
Yen
$
285,376
U.S. dollars
Amounts per share:
Net income:
Basic
Cash dividends applicable to the year
¥78.14
¥60.26
$0.66
12.00
9.00
0.10
Net income per share is calculated based on the average number of issued and outstanding common stocks during the fiscal year (426,803 thousand shares in fiscal
year 2006 and 426,830 thousand shares in fiscal year 2005). The figure of diluted net income per share is not applicable since there was no potential share of common
stock that had dilutive effect as of March 31, 2006 and 2005.
The accompanying notes are an integral part of these consolidated financial statements.
22
CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY
Years ended March 31, 2006 and 2005
Millions of yen
Balance at March 31, 2004
Common
stock
Additional
paid-in
capital
Retained
earnings
Net unrealized
holding gain
on securities
Foreign
currency
translation
adjustments
Treasury
stock,
at cost
Total
¥ 28,404
¥ 10,837
¥ 161,138
¥ 29,427
¥ (8,094)
¥ (69)
¥ 221,644
Net income
—
—
25,871
—
—
—
25,871
Cash dividends paid
—
—
(2,998)
—
—
—
(2,998)
Bonuses to directors and
corporate auditors
—
—
(167)
—
—
—
(167)
Net change in unrealized holding
gains on securities
—
—
—
(2,615)
—
—
(2,615)
Foreign currency translation
adjustments
—
—
—
—
(1,158)
—
(1,158)
Purchase and reissuance of
treasury stock
—
—
—
—
—
(30)
(30)
Balance at March 31, 2005
28,404
10,837
183,843
26,812
(9,252)
(99)
¥ 240,545
Net income
—
—
33,523
—
—
—
33,523
Cash dividends paid
—
—
(4,697)
—
—
—
(4,697)
Bonuses to directors and
corporate auditors
—
—
(189)
—
—
—
(189)
Net change in unrealized holding
gains on securities
—
—
—
27,471
—
—
27,471
Foreign currency translation
adjustments
—
—
—
—
6,668
—
6,668
Purchase and reissuance of
treasury stock
—
—
—
—
Balance at March 31, 2006
¥28,404
¥10,837
¥212,479
¥54,284
—
(15)
(15)
¥(2,584)
¥(114)
¥303,306
Foreign
currency
translation
adjustments
Treasury
stock,
at cost
$ (844) $ 2,047,722
Thousands of U.S. dollars
Balance at March 31, 2005
Common
stock
Additional
paid-in
capital
Retained
earnings
Net unrealized
holding gain
on securities
Total
$ 241,800
$ 92,258
$ 1,565,024
$ 228,249
$ (78,767)
Net income
—
—
285,376
—
—
—
285,376
Cash dividends paid
—
—
(39,986)
—
—
—
(39,986)
Bonuses to directors and
corporate auditors
—
—
(1,613)
—
—
—
(1,613)
Net change in unrealized holding
gains on securities
—
—
—
233,863
—
—
233,863
Foreign currency translation
adjustments
—
—
—
—
56,765
—
56,765
Purchase and reissuance of
treasury stock
—
—
—
—
—
Balance at March 31, 2006
$241,800
$92,258
$1,808,801
$462,113
$(22,001)
(134)
(134)
$(978) $2,581,993
The accompanying notes are an integral part of these consolidated financial statements.
23
CONSOLIDATED STATEMENTS OF CASH FLOWS
Years ended March 31, 2006 and 2005
Millions of yen
Cash flows from operating activities
Income before income taxes and minority interests
Depreciation
Increase (decrease) in accrued retirement benefits for employees
Increase (decrease) in accrued retirement benefits for directors
and corporate auditors
Increase (decrease) in allowance for doubtful accounts
Interest and dividend income
Interest expenses
Exchange (gain) loss
Equity in (earnings) loss of affiliates
Gain on sales of property, plant and equipment
Loss on disposal of property, plant and equipment
(Gain) loss on sales of securities
Loss on revaluation of securities
(Increase) decrease in notes and accounts receivable
(Increase) decrease in inventories
Increase (decrease) in notes and accounts payable
Increase (decrease) in consumption taxes payable
Bonuses paid to directors and corporate auditors
Others
Subtotal
Interest and dividends received
Interest paid
Income taxes paid
Net cash provided by operating activities
Thousands of
U.S. dollars
2006
2005
2006
¥ 58,618
60,773
1,616
¥ 38,665
51,486
1,592
$ 499,004
517,357
13,762
(16)
(224)
(1,053)
492
(494)
(2,792)
(9,285)
2,895
(45)
29
(29,830)
(738)
31,773
(335)
(205)
(31,365)
79,813
1,587
(505)
(16,611)
64,283
93
438
(613)
569
(232)
(2,184)
(841)
2,690
61
4
(27,094)
(13,216)
51,545
(598)
(173)
7,140
109,334
1,257
(581)
(21,331)
88,679
(140)
(1,911)
(8,964)
4,195
(4,207)
(23,773)
(79,045)
24,650
(387)
252
(253,938)
(6,282)
270,482
(2,859)
(1,746)
(267,010)
679,437
13,513
(4,304)
(141,414)
547,230
Cash flows from investing activities
Investments in time deposits
Income from refund of time deposits
Payments for acquisition of property, plant and equipment
Proceeds from sales of property, plant and equipment
Payments for acquisition of investment securities
Proceeds from sales of investment securities
Proceeds from (payments for) acquisition of shares of subsidiaries
(Increase) decrease in short-term loans receivable
Payments for long-term loans receivable
Proceeds from collection of long-term loans receivable
Net cash used in investing activities
(42)
163
(80,975)
12,233
(26)
569
—
(705)
(1,403)
1,383
(68,805)
(59)
77
(71,190)
2,006
(8)
1,290
663
(855)
(987)
1,236
(67,826)
(363)
1,389
(689,332)
104,138
(221)
4,848
—
(6,009)
(11,948)
11,773
(585,725)
Cash flows from financing activities
Increase (decrease) in short-term bank loans
Proceeds from issuance of long-term debt
Payments for settlement of long-term debt
Redemption of corporate bonds
Payments for acquisition of treasury stock
Dividends paid
Dividends paid to minority interests in consolidated subsidiaries
Net cash provided by (used in) financing activities
10,233
13,932
(18,146)
(100)
(16)
(4,697)
(815)
391
5,867
28,100
(35,728)
—
(29)
(2,998)
(507)
(5,296)
87,118
118,602
(154,477)
(851)
(137)
(39,986)
(6,937)
3,330
1,005
(3,124)
71,360
¥ 68,235
(300)
15,254
56,105
¥ 71,360
8,563
(26,601)
607,478
$ 580,877
Effect of exchange rate changes
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of year
Cash and cash equivalents at end of year (Note 7)
The accompanying notes are an integral part of these consolidated financial statements.
24
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
1. Basis of Presentation of the Consolidated
Financial Statements
The accompanying consolidated financial statements have been
prepared from accounts and records maintained by Daihatsu
Motor Co., Ltd. (the Company) and its domestic subsidiaries in
accordance with generally accepted accounting principles in
Japan, which are different in certain respects as to the application
and disclosure requirements from International Financial
Reporting Standards.
The financial statements are expressed in yen and, solely for
the convenience of the reader, have been translated into U.S. dollars at the rate of ¥117.47=US$1, the approximate exchange rate
prevailing on the Tokyo Foreign Exchange Market on March 31,
2006. These translations should not be construed as representations that the yen amounts have been or could be converted into
U.S. dollars at this rate.
The amounts reported are in millions of yen and in thousands
of U.S. dollars, and figures have been rounded down.
Certain account balances, as disclosed in the basic consolidated financial statements in Japan, have been summarized or
reclassified to the extent deemed necessary to enable presentation in a form which is more familiar to readers outside Japan.
2. Significant Accounting Policies
(a) Scope of consolidation and application of the equity method
All 59 subsidiaries (61 in 2005) are consolidated, and 21 affiliates
are accounted for by the equity method.
Since the fiscal year-end for certain consolidated subsidiaries is
December 31, their financial statements as of that date are used
in the preparation of the Company’s consolidated financial statements. When significant transactions occur at those subsidiaries
between their fiscal year end and the Company’s fiscal year end,
these transactions are included in consolidation as necessary.
(b) Marketable securities and investment in securities
Marketable securities and investment in securities are classified
into two categories: 1) investment in unconsolidated subsidiaries
and affiliates, 2) other securities.
Other securities with market quotations are stated at the
market price on March 31, 2006 (with any unrealized valuation
difference recorded under shareholders’ equity, and with cost
computed using the moving-average method), while non-marketable other securities are stated at cost, cost being determined
by the moving-average method.
(c) Inventories
Inventories are stated at the lower of cost or market price. Cost
is principally determined by the periodic average method for finished products (manufactured vehicles or parts/components) and
work in process, by the identified cost method for finished products (purchased vehicles) and by the last-in first-out method for
raw materials.
(d) Property, plant and equipment
Property, plant and equipment are stated at cost. Depreciation is
principally computed using the declining balance method at rates
based on the estimated useful lives of the respective assets.
Depreciation of buildings (excluding attached facilities) acquired
on or after April 1, 1998 is computed using the straight-line method.
(e) Allowance for doubtful accounts
Provisions against losses caused by doubtful receivables and
other bad debts are stated based on historical credit loss ratios.
With specific claims where there is an acknowledged credit risk,
provisions are stated at the estimated uncollectible amounts
based on assessment of the likely recoverable monies on a
case-by-case basis.
(f) Retirement benefits and pension plans
To provide for the payment of retirement and severance benefits
to employees, accrued retirement benefits are provided for based
on the total amount of projected retirement benefits obligation
reduced by the fair value of pension plan assets as of the fiscal
year-end.
Unrecognized prior service obligations are amortized on a
straight-line basis over the average estimated remaining service
years of the employees (15 years) from the time such liability
arose. Actuarial differences are amortized on a straight-line basis
over the average remaining service years of the employees
(14–18 years) from the next fiscal year after the gain or loss
occurs.
(g) Reserve for retirement benefits for directors and corporate
auditors
In preparation for the payment of retirement benefits to directors
and corporate auditors, a necessary amount determined in accordance with the internal rules is booked to a reserve at the end
of the fiscal year.
The reserve is included in “Other long-term liabilities” in the
accompanying consolidated balance sheets.
(h) Accrued product warranty
To provide for expenses for after-sales service based on warranty
certificates, service expenses in the amount estimated to be
incurred over the life of the warranty are booked to a reserve
which is included in “Other current liabilities” in the accompanying
consolidated balance sheets.
( i ) Major principles in accounting for lease transactions
Financial leases, other than those that transfer ownership of
the leased assets to the lessee, are treated in the same way as
ordinary operating leases for accounting purposes.
( j ) Major principles in accounting for hedges
All forward currency exchange contracts and currency swaps
are made for monetary receivables and payables denominated
in foreign currencies. These transactions are used to hedge the
exposure of monetary receivables and payables denominated in
foreign currencies to interest rate risk. Moreover, these transactions are engaged in based on internal regulations and in-house
rules approved by the board of directors. The results of these
transactions are reported on a regular basis to the board of
directors.
(k) Evaluation of the assets and liabilities of consolidated
subsidiaries
On the acquisition of a subsidiary, all of the subsidiaries’ assets
and liabilities that exist at the date of acquisition are recorded at
their fair value as of the date of acquisition.
( l ) Amortization of consolidation adjustment account
Consolidation adjustment account, which is the difference
between the cost of investment in a subsidiary and the equity in
its net assets at the date of acquisition, is recognized as profit or
loss as incurred, since such amount are immaterial.
(m) Appropriation of retained earnings
Appropriations of retained earnings at each year end are reflected
in the financial statements for the following year upon the
approval of the shareholders’ meeting.
(n) Cash and cash equivalents
In the consolidated statements of cash flows, cash and cash
equivalents are composed of cash on hand, deposits that may be
withdrawn on demand and highly liquid investments purchased
with initial maturities of three months or less and which present
a low risk of fluctuation in value.
25
Change in accounting standards in fiscal year 2005
Accounting standards for impairment of fixed assets
Companies in Japan have been able to apply accounting standards
for impairment of fixed assets (Opinion on Accounting Standards
for Impairment of Fixed Assets, Business Accounting Council,
August 9, 2002 and Guidelines for Practical Application of
Accounting Standards for Impairment of Fixed Assets, Business
Accounting Council, October 31, 2003) to the preparation of
consolidated balance sheets starting with the fiscal year ended
March 31, 2004. In accordance, the Company adopted the above
accounting standards and guidelines in the fiscal year ended
March 31, 2005. The cumulative impairment losses will be directly
deducted from the balance sheet amounts of the relevant
assets based on the revised rules for preparing consolidated
balance sheets.
Cash on hand and in banks
Trade notes and accounts
receivable
Other current assets
Buildings and structures
Machinery, equipment
and vehicles
Land
Total
3. Short-term and Long-term Debt
4. Contingent Liabilities
The components of short-term bank loans as of March 31, 2006
and 2005 were as follows:
Contingent liabilities as of March 31, 2006 and 2005 were as follows:
Millions of yen
Short-term loans:
Secured loans
Unsecured loans
Total
2006
2005
¥ 19,819
85,323
¥105,143
¥22,755
71,899
¥94,654
2006
$168,719
726,343
$895,062
Millions of yen
Loans:
Secured loans
Unsecured loans
Subtotal
Bonds:
0.89 percent mortgage
bonds, due 2006
Subtotal
Less current portion
Total
2005
Thousands of
U.S. dollars
2006
¥ 5,363
39,199
44,563
¥ 5,052
43,589
48,642
$ 45,662
333,700
379,362
—
44,563
(26,978)
¥ 17,584
100
48,742
(17,008)
¥ 31,633
—
379,362
(229,666)
$ 149,696
The aggregate annual maturities of long-term debt in the fiveyear period beginning with the fiscal year ending March 31, 2007
are summarized as follows:
2007.4.1–2008.3.31
2008.4.1–2009.3.31
2009.4.1–2010.3.31
2010.4.1–2011.3.31
Millions of yen
Thousands of
U.S. dollars
¥8,934
8,171
264
126
$76,059
69,558
2,248
1,077
Thousands of
U.S. dollars
Millions of yen
2006
¥
—
2005
¥
2006
10
$
—
112
194
6,513
188
576
6,840
955
1,654
55,448
466
13,957
¥21,244
480
14,574
¥22,670
3,973
118,817
$180,849
Thousands of
U.S. dollars
The components of long-term debt as of March 31, 2006 and
2005 were as follows:
2006
As of March 31, 2006 and 2005, the following assets were pledged
as collateral against short-term bank loans and long-term debt:
Thousands of
U.S. dollars
Millions of yen
Guarantees of financial institution
loans
Trade notes receivable, discounted
2006
2005
2006
¥184
42
¥256
76
$1,568
359
5. Research and Development Expenses
The following research and development expenses were included
in cost of sales and selling, general and administrative expenses
for the years ended March 31, 2006 and 2005, respectively, and
were as follows:
Thousands of
U.S. dollars
Millions of yen
2006
2005
2006
¥47,803
¥40,354
$406,940
6. Loss on Impairment of Fixed Assets
The Daihatsu Group has recognized a loss on the impairment of
the following assets for the year ended March 31, 2005:
Use
Type
Location
Idle
Land
Tokyo, etc.
The book value of the above assets has been written down to
its recoverable value, and an impairment loss of ¥928 million was
charged as an extraordinary loss for the year ended March 31,
2005. The recoverable value was determined based on net sales
value, and market value was estimated based on the evaluation
for property tax.
7. Cash and Cash Equivalents
The components of cash and cash equivalents as of March 31,
2006 and 2005 were as follows:
Millions of yen
Cash on hand and in banks
Time deposits with maturities
in excess of three months
Deposits
Total
26
Thousands of
U.S. dollars
2006
2005
2006
¥17,478
¥19,262
$148,792
(289)
(410)
51,046
52,507
¥68,235 ¥71,360
(2,466)
434,551
$580,877
8. Leases
The value of operating leases was as follows:
The value of financial leases, other than those that transfer
ownership of the leased assets to the lessee, was as follows:
As a lessee
As a lessee
Pro forma information regarding acquisition cost accumulated
depreciation and net book value of leased assets:
Millions of yen
2006
Acquisition cost:
Machinery, equipment
and vehicles
Other (property, plant
and equipment)
Subtotal
Accumulated depreciation
Net book value
Future minimum lease payments:
Due within one year
Due after one year
Total
2005
Thousands of
U.S. dollars
2006
Thousands of
U.S. dollars
Millions of yen
Future minimum lease payments:
Due within one year
Due after one year
Total
2006
2005
2006
¥ 416
2,390
¥2,807
¥—
—
¥—
$ 3,543
20,353
$23,896
As a lessor
¥ 1,794 ¥ 3,912
$ 15,276
Thousands of
U.S. dollars
Millions of yen
1,858
1,980
3,652
5,892
(1,469) (3,360)
¥ 2,183 ¥ 2,532
15,820
31,096
(12,510)
$ 18,585
¥
$ 4,760
13,825
$ 18,585
559 ¥ 803
1,624
1,728
¥ 2,183 ¥ 2,532
The amounts equivalent to the acquisition cost of leased assets and future
minimum lease payments are calculated based upon the inputted interest
expense method because future minimum lease payments account for only a
small proportion of property, plant and equipment.
Lease payments and equipment depreciation:
Lease payments
¥ 726 ¥
Equivalent depreciation
726
868
868
$ 6,188
6,188
Method of calculating depreciation amount for leases:
The depreciation amount of the lease is calculated using the straightline method using the remaining balance divided by the remaining
years in the lease term.
As a lessor
Acquisition cost, accumulated depreciation and net book value of
leased assets:
Millions of yen
Thousands of
U.S. dollars
2006
2005
2006
Acquisition cost:
Machinery, equipment
and vehicles
Other (property, plant
and equipment)
Subtotal
Accumulated depreciation
Net book value
¥ 48
¥ 48
$ 412
79
128
(88)
¥ 39
397
445
(371)
¥ 74
678
1,090
(754)
$ 335
Future minimum lease payments:
Due within one year
Due after one year
Total
¥ 21
48
¥ 70
¥ 51
53
¥ 105
$ 185
415
$ 601
Lease revenues and depreciation:
Lease revenues
Depreciation
¥ 34
16
¥ 70
36
$ 293
138
Future minimum lease payments:
Due within one year
Due after one year
Total
2006
2005
2006
¥ 76
1,244
¥1,321
¥ 76
1,321
¥1,398
$ 655
10,595
$11,251
9. Securities
Other securities with market values
Information regarding marketable securities classified as other
securities at March 31, 2006 and March 31, 2005 is as follows:
Millions of yen
For the fiscal year ended
March 31, 2006
Acquisition
cost
Carrying
value
Securities whose carrying value
exceeds their acquisition cost:
Stocks
Bonds
Subtotal
¥12,258 ¥103,185
—
—
12,258 103,185
¥90,927
—
90,927
Securities whose carrying value
does not exceed their
acquisition cost:
Stocks
Bonds
Subtotal
Total
—
—
—
—
—
—
¥12,258 ¥103,185
—
—
—
¥90,927
For the fiscal year ended
March 31, 2005
Acquisition
cost
Carrying
value
Difference
Securities whose carrying value
exceeds their acquisition cost:
Stocks
Bonds
Subtotal
¥12,279
—
12,279
¥57,185
—
57,185
¥44,906
—
44,906
Securities whose carrying value
does not exceed their
acquisition cost:
Stocks
Bonds
Subtotal
Total
—
—
—
¥12,279
—
—
—
¥57,185
—
—
—
¥44,906
Difference
Millions of yen
The amount equivalent to future minimum lease payments is calculated using
the inputted interest income method because future minimum lease payments
and the estimated remaining value account for only a small proportion of
operating receivables.
27
Thousands of U.S. dollars
For the fiscal year ended
March 31, 2006
Acquisition
cost
Carrying
value
Difference
Securities whose carrying value
exceeds their acquisition cost:
Stocks
Bonds
Subtotal
$104,356 $878,402 $774,046
—
—
—
104,356 878,402 774,046
Securities whose carrying value
does not exceed their
acquisition cost:
Stocks
Bonds
Subtotal
Total
—
—
—
—
—
—
—
—
—
$104,356 $878,402 $774,046
Note: The market values of listed marketable securities are principally determined by closing prices on the Tokyo Stock Exchange.
11. Derivative Financial Instruments
For the fiscal year ended March 31, 2005 and 2006
Items regarding transactions
The Daihatsu Group’s derivative transactions are comprised of
forward currency exchange contracts and currency swaps.
(Currency-related transactions)
The Company uses derivative transactions to hedge against
exchange rate risk on monetary receivables and payables denominated in foreign currencies. The counterparties to all such transactions are highly credible banks, therefore the credit risk is
extremely low. These transactions are engaged in based on internal regulations and in-house rules approved recognized by the
board of directors, and are reported on a regular basis to the
board of directors.
Market value of transactions
This item has been omitted because hedge accounting was
applied to all of the Daihatsu Group’s derivative transactions.
Other securities that were sold
Millions of yen
Sales amount
Gain on sales
Loss on sales
Thousands of
U.S. dollars
2006
2005
2006
¥569
45
—
¥ 638
99
(178)
$4,848
387
—
12. Retirement Benefits
Outline of retirement benefit plans
The Company and its consolidated subsidiaries have corporate pension funds, welfare pension fund plans, tax-qualified pension plans,
termination allowance systems and defined contribution plans.
The components of accrued retirement benefits for employees
were as follows:
10. Related Party Transaction
Millions of yen
Transactions and balance with Toyota Motor Corporation, who
owns 51.6% of the Company’s shares, are as follows:
Millions of yen
2006
Amount of transaction
Sales of consigned cars,
and others
Purchase of automotive
parts
Balance at year end
Deposits, trade accounts
receivable, and
other current assets
Trade accounts payable
and accrued expenses,
and others
2005
Thousands of
U.S. dollars
2006
¥264,947
¥225,723
$2,255,449
89,793
86,153
764,392
¥ 98,057
10,549
¥ 81,068
10,228
$ 834,744
89,809
2006
a. Retirement benefit
obligations
b. Pension plan assets
c. Accrued retirement
benefits for employees
d. Pre-paid pension
plan expenses
e. Balance (a+b+c+d)
Details of balance
f. Unrecognized actuarial
differences
g. Unrecognized prior
service obligations
(decrease of obligations)
h. Balance (f+g)
2005
¥(130,332) ¥(128,163)
54,665
45,179
53,714
52,064
Thousands of
U.S. dollars
2006
$(1,109,498)
465,354
457,257
(131)
(119)
¥ (22,084) ¥ (31,037)
(1,118)
$ (188,005)
¥ (22,087) ¥ (31,040)
$ (188,029)
2
3
¥ (22,084) ¥ (31,037)
23
$ (188,005)
Notes: 1. Some consolidated subsidiaries have adopted a simplified method for
calculating retirement benefit obligations.
2. In addition to the above pension plan assets, there were pension plan
assets for certain multi-employer pension plans which could not be
systematically allocated to each participating employer. Such pension
plan assets amounted to ¥24,365 million ($207,417 thousand) and
¥20,141 million yen as of March 31, 2006 and 2005, respectively.
28
13. Income Taxes
The components of retirement benefit-related expenses were
as follows:
Millions of yen
a. Service costs
b. Interest costs
c. Expected return on pension
plan assets
d. Amortization of actuarial
differences
e. Amortization of prior
service obligations
f . Total retirement
benefits-related costs
(a+b+c+d+e)
2006
2005
2006
¥5,367
2,160
¥5,511
2,191
$45,688
18,395
(670)
2,311
(0)
¥9,168
The main components of deferred tax assets and liabilities are
as follows:
Thousands of
U.S. dollars
(666)
2,290
2006
19,677
¥9,327
2005
2006
Deferred tax assets:
Accrued retirement benefits
for employees
¥ 22,064 ¥ 20,549
Accrued expenses
17,819
22,444
Deferred expenses for sales
promotion, etc. under
the corporate income tax law
1,604
1,824
Accrued product warranty
2,835
3,200
Tax loss carry forward
981
2,038
Allowance for doubtful accounts
403
523
Other
7,737
8,597
Total gross deferred taxes
53,446
59,178
Less valuation allowance
(642)
(1,848)
Total deferred tax assets
52,803
57,329
(5,712)
(0)
Thousands of
U.S. dollars
Millions of yen
(2)
$78,046
Notes: 1. Retirement benefit-related expenses for consolidated subsidiaries
adopting the simplified method are included in a. service cost.
2. Contributions to certain multi-employer pension plans for which
pension plan assets could not be systematically allocated to each
participating employer amounted to ¥1,358 million ($11,566 thousand)
and ¥1,198 million for the years ended March 31, 2006 and 2005,
respectively.
Deferred tax liabilities:
Net unrealized holding gain
on securities
Reserve for advanced
depreciation of property,
plant and equipment
Other
Total deferred tax liabilities
Net deferred tax liabilities
Assumptions used in accounting for retirement benefit
obligations
a. Method of attributing
Straight-line method
benefits to period of
service
b. Discount rate
2.0%
(2.0% in previous fiscal year)
c. Expected rate of return
2.0%
on pension plan assets
(2.0% in previous fiscal year)
d. Amortization period for
15 years
prior service obligation
(Amortized on a straight-line basis
over the average estimated remaining service years of employees from
the time such liability arises)
e. Amortization period for
14–18 years
actuarial differences
(Amortized on a straight-line basis
over the average remaining service
years of employees from the year
after the gain or loss occurs)
$ 187,829
151,690
13,662
24,133
8,357
3,435
65,869
454,978
(5,470)
449,507
(36,762) (18,190)
(312,954)
(4,756)
(3,291)
(4,713)
(6,139)
(46,233) (27,622)
¥ 6,570 ¥ 29,707
(40,491)
(40,128)
(393,574)
$ 55,933
Main components of the significant differences between the
statutory tax rate and the effective tax rate after adjustments for
purpose of the consolidated financial statements:
2006
Statutory tax rate
（Adjustments）
Equity in earnings of affiliates
Difference in applied tax rate for overseas subsidiaries
Special credit of income tax
Other
Effective tax rate after adjustments
2005
40.5% 40.5%
(4.8)
(2.3)
(3.2)
(3.3)
(2.6)
(5.8)
3.7
(3.1)
33.6% 26.0%
14. Segment Information
Information by business segment
Information by business segment has been omitted because the automobile related business accounts for in excess of 90% of total sales,
operating income, and assets of all segments.
Information by geographical area
Millions of yen
For the fiscal year ended March 31, 2006
Sales and operating income (loss):
Sales:
Sales to outside customers
Inter area sales and transfer
Total sales
Operating expenses
Operating income (loss)
Assets
Japan
Asia
Europe
and other
¥1,083,893
77,152
1,161,046
1,121,340
¥ 39,705
¥ 930,019
¥248,252
966
249,219
240,325
¥ 8,893
¥ 91,922
¥15,825
—
15,825
15,785
¥
40
¥13,773
Total
¥1,347,972
78,118
1,426,091
1,377,452
¥ 48,638
¥1,035,715
Corporate
or elimination
Consolidation
¥
—
(78,118)
(78,118)
(78,118)
¥
—
¥ (8,487)
¥1,347,972
—
1,347,972
1,299,333
¥ 48,638
¥1,027,228
29
Millions of yen
For the fiscal year ended March 31, 2005
Sales and operating income (loss):
Sales:
Sales to outside customers
Inter area sales and transfer
Total sales
Operating expenses
Operating income (loss)
Assets
Japan
Asia
Europe
Other
Total
¥1,002,503
¥159,465
¥14,262
¥ 13
¥1,176,245
64,195
1,066,699
1,032,646
¥ 34,052
¥ 803,190
772
160,238
154,240
¥ 5,998
¥ 73,929
—
14,262
14,185
¥
77
¥11,661
—
13
25
¥ (11)
¥342
64,968
1,241,213
1,201,097
¥ 40,116
¥ 889,124
Corporate
or elimination
¥
—
(64,968)
(64,968)
(64,968)
¥
—
¥ (4,186)
Consolidation
¥1,176,245
—
1,176,245
1,136,128
¥ 40,116
¥ 884,937
Thousands of U.S. dollars
For the fiscal year ended March 31, 2006
Sales and operating income (loss):
Sales:
Sales to outside customers
Inter area sales and transfer
Total sales
Operating expenses
Operating income (loss)
Assets
Japan
Europe
and other
Total
$134,722
—
134,722
134,382
$
340
$117,250
$11,475,035
665,010
12,140,045
11,725,993
$ 414,051
$ 8,816,851
Asia
$9,226,981 $2,113,331
656,785
8,224
9,883,766 2,121,555
9,545,761 2,045,849
$ 338,004 $ 75,705
$7,917,082 $ 782,518
Corporate
or elimination
Consolidation
$
— $11,475,035
(665,010)
—
(665,010) 11,475,035
(665,010) 11,060,983
$
— $ 414,051
$ (72,253) $ 8,744,598
Notes: 1. Country and regional classifications are made on the basis of geographical proximity.
2. The principal countries and regions represented in the above categories are as follows:
(1) Asia:
Malaysia, Indonesia
(2) Europe and other: Germany
Overseas sales
Millions of yen
For the fiscal year ended March 31, 2006
Overseas net sales
Consolidated net sales
Percent of consolidated net sales
Asia
Europe
Other
Total
¥273,460
¥43,013
¥37,511
20.3%
3.2%
2.8%
¥ 353,985
1,347,972
26.3%
Millions of yen
For the fiscal year ended March 31, 2005
Overseas net sales
Consolidated net sales
Percent of consolidated net sales
Asia
Europe
Other
Total
¥183,223
¥34,682
¥33,569
¥ 251,475
15.6%
2.9%
2.9%
1,176,245
21.4%
Thousands of U.S. dollars
For the fiscal year ended March 31, 2006
Overseas net sales
Consolidated net sales
Percent of consolidated net sales
Asia
Europe
Other
Total
$2,327,914
$366,164
$319,329
20.3%
3.2%
2.8%
$ 3,013,409
11,475,035
26.3%
Notes: 1. Country and regional classifications are made on the basis of geographical proximity.
2. The principal countries and regions represented in the above categories are as follows:
(1) Asia:
Malaysia, Indonesia
(2) Europe: Germany, Italy
(3) Other: Venezuela, Dominican Republic
3. Overseas sales represent sales outside of Japan by the Company and its consolidated subsidiaries.
30
Report of Independent Auditors
To the Board of Directors of DAIHATSU MOTOR CO., LTD.
We have audited the accompanying consolidated balance sheet of DAIHATSU MOTOR CO., LTD. (“the Company”) and its subsidiaries as of March 31, 2006, and the related consolidated statements of income, shareholders' equity, and cash flows for the
year then ended, all expressed in Japanese Yen. These consolidated financial statements are the responsibility of the Company’s
management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. The
consolidated financial statements of the Company and its subsidiaries as of March 31, 2005 and for the year then ended were
audited by other auditors whose report dated June 29, 2005 expressed an unqualified opinion on those statements.
We conducted our audits in accordance with auditing standards generally accepted in Japan. Those standards require that we plan
and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated
financial statements. An audit also includes assessing the accounting principles used and significant estimates made by
management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audits provide
a reasonable basis for our opinion.
In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated
financial position of the Company and its subsidiaries as of March 31, 2006, and the consolidated results of their operations and
their cash flows for the year then ended in conformity with accounting principles generally accepted in Japan.
The amounts expressed in U.S. dollars, which are provided solely for the convenience of the reader, have been translated on the
basis set forth in Note 1 to the accompanying consolidated financial statements.
Osaka, Japan
June 29, 2006
31
Investor Information
Directors, Corporate Auditors and Executive Officers
Corporate Data (As of March 31, 2006)
(As of June 29, 2006)
Company Name
Chairman
Kousuke Shiramizu
DAIHATSU MOTOR CO., LTD.
President
Teruyuki Minoura
Founded
March 1, 1907
Executive Vice Presidents
(Executive Officers)
Katsuyuki Kamio
Kiyokazu Seo
Katsuhiko Okumura
Paid-in Capital
Product Marketing Group, Global Operations Group
¥28,404 million
Quality Group, Head Quarters of Production Group, Task Force
Corporate Planning Group, Cost Innovation Group,
Administration Headquarters Group
Number of Employees
11,873 (As of April 1, 2006)
Managing Directors
(Executive Officers)
Tetsuya Honda
Head Quarters of Production Group, Production Engineering
Block, Machinery Engineering Block
Yoshihiro Uehara
General Administration & Public Relations Block,
Tokyo Office Block
Tamio Nakakubo
Product Development Group, Task Force
Shares of Common Stock
Authorized:
1,600,000,000 shares
Issued:
427,122,966 shares
Number of Shareholders
19,900
(Of the total number of the shareholders, there were 1,472 shareholders
with less than one trading unit accounting for 1,491 thousand shares.)
Director
(Executive Officer)
Shin Kimura
Shareholders Register Manager and Its Place of Business
Product Marketing Block
Statutory Corporate Auditors
Kenzo Otsue
Hirohiko Tomizawa
Head Office Transfer Agency Department,
Daiko Clearing Services Corporation
2-4-6, Kitahama, Chuo-ku, Osaka 541-8583, Japan
Phone: +81-6-6203-1751 (representative)
Corporate Auditors
Kosuke Ikebuchi
Hiroyuki Watanabe
Major Shareholders and Ownership
(%)
TOYOTA MOTOR CORPORATION
Japan Trustee Services Bank, Ltd. (Trust account)
The Master Trust Bank of Japan, Ltd. (Trust account)
The Bank of Tokyo-Mitsubishi UFJ, Ltd.
OHGI SHOKAI CO., LTD.
Mitsui Sumitomo Insurance Co., Ltd.
Nissay Dowa General Insurance Co., Ltd.
State Street Bank and Trust Company
DAIHATSU Employee Stock Ownership Plan
Nippon Life Insurance Company
Executive Officers
Katsuyuki Morishita BR (Business Reform) Promotion Block
Yukio Koshida
Manufacturing Block
Hiroshige Nagoya Industrial Engine Block
Hiroaki Iwabe
Overseas Planning Block, Overseas Operations Block (China)
Hideki Nomura
P.T. Astra Daihatsu Motor
Kenji Baba
Domestic Sales Block
Takanori Matsuo
Finance, Accounting & Cost Management Block
Jun Nagata
Styling Block
Kunihiko Morita
Purchasing Block
Tadafumi Aisaka
Development Block No.1, Global Product Planning Block
Masahiro Takahashi Corporate Planning Block, Finance, Accounting & Cost
51.19
3.82
2.66
1.15
1.03
0.96
0.85
0.84
0.79
0.71
Management Block
Toshiharu Imanishi
Eiji Nakajima
Perodua Group
Sachio Yamazaki
Overseas Operations Block (Overseas
Engineering Cooperation,
Asia, Middle East, Africa, Oceania)
Global Strategic Production Planning Block,
Production Control Block
Stock Price Trends
(From April 1, 2005 to March 31, 2006, Tokyo Stock Exchange)
(Yen)
1,400
Naoto Kitagawa
Development Block No.3,
Vehicles Development Block
Masayuki Yamaguchi
Overseas Marketing Block,
Overseas Operations Block (Europe, Americas)
Masafumi Tamai
Katsuhiro Ikoma
Sunao Matsubayashi
Human Resources Block
Yasunori Nakawaki
Power Train Development Block,
Advanced Technical Development Block
Hitoshi Horii
Masahiro Fukutsuka
Domestic Marketing Block
2005
Development Block No.2
April
May
June
July
High
888
847
964
975
Low
812
776
786
923
937
931
1,047 1,030 1,107 1,212 1,145 1,087
Close*
850
806
852
945
988
999
1,118 1,098 1,241 1,292 1,216 1,175
32
Quality Generalization Block
Development Block No.4,
Technical Generalization Block,
Vehicles Engineering Block
1,300
1,200
1,100
1,000
900
800
700
2006
Aug.
Sept.
Oct.
Nov.
Dec.
Jan.
Feb.
Mar.
1,016 1,210 1,167 1,143 1,320 1,363 1,330 1,247
*Average closing prices are rounded to the nearest yen.
Major Domestic and Overseas Companies
(excluding domestic distributors) (As of June 29, 2006)
Capital or
investment
Registered
address
Name
Major products and lines of businesses
（millions of yen）
Major consolidated subsidiaries
Daihatsu Motor Kyushu Co., Ltd.
Nakatsu, Oita
450
Manufacture of Hijet Truck, Hijet Cargo, Atrai Wagon, and Be-go (OEM car: Rush)
Aoi Machine Industry Co., Ltd.
Higashi Osaka, Osaka
300
Manufacture of automobile parts and parts for agricultural equipment
Akashi Kikai Seisakusho Co., Ltd.
Akashi, Hyogo
200
Manufacture of automobile parts, parts for agricultural
equipment, and hydraulic and diesel devices
Daihatsu Metal Co., Ltd.
Kawanishi, Hyogo
205
Heat processing of various metal castings and machine tooling
Daihatsu Credit Co., Ltd.
Chuo, Tokyo
300
Consumer finance, debt guarantees, and leasing
Daihatsu Transportation Co., Ltd.
Ikeda, Osaka
30
Daihatsu Deutschland GmbH
Tonisvorst, Germany
EURO
4.2 million
Wholesale of automobiles and automobile parts
Perodua Manufacturing Sdn. Bhd.
Shah Alam, Malaysia
RM
140.0 million
Manufacture of Kancil, Kelisa, Kembara, Kenari,
Myvi (consigned car: Avanza)
P.T. Astra Daihatsu Motor
Jakarta, Indonesia
RP
338.85 billion
Manufacture of Zebra, Taruna, Xenia (consigned car: Avanza)
and sale of automobiles and automobile parts
Vehicle transport handler, cargo and transport, and vehicle
transportation
Major affiliates accounted for by the equity method
Daihatsu Diesel Mfg. Co., Ltd.
Osaka, Osaka
1,420
Asano Gear Co., Ltd.
Osaka Sayama, Osaka
324
Manufacture and sale of marine engines, land engines, gas turbines, cogeneration systems, and other related parts. Manufacture and sale of diesel
engines, gas turbine engines, construction equipment, auto door devices,
and aluminum wheels.
Manufacture and sale of precision gears, axels for car chassis front and
rear, gear boxes, transmissions, and machine tools
Major Domestic Offices and Plants
Sales and Service Network
(As of June 2006)
• Head Office
1-1, Daihatsu-cho, Ikeda,
Osaka 563-8651, Japan
Phone:
+81-72-754-3047
Facsimile: +81-72-753-6880
http://www.daihatsu.co.jp (Japanese)
http://www.daihatsu.com (English)
• Tokyo Office
2-2-10, Nihonbashi-honcho, Chuo-ku,
Tokyo 103-8408, Japan
Phone:
+81-3-3241-8083
Facsimile: +81-3-3279-0038
• Domestic Distributors
• 63 companies
• Overseas Distributors
• Approx. 120 companies
• Overseas Dealers and Service Outlets
• Approx. 2,300 companies
• (Approx. 120 countries)
• Major Domestic Plants (As of June 2006)
Name
Plant
location
Number of
employees*
Head (Ikeda) Plant
Ikeda, Osaka
2,055
Shiga (Ryuo) Plant
Gamo, Shiga
3,752
Kyoto Plant
Otokuni, Kyoto
1,179
Established
May 1939 (Plant No. 1)
June 1961 (Plant No. 2)
April 1974 (Plant No. 1)
January 1989 (Plant No. 2)
April 1973
Products
Transmissions, press parts, machine processed parts
Move, Mira, Copen, Boon, Coo, Delta, (consigned cars: Passo and bB)
Engines, transmissions, light alloy castings
Move, Mira, Tanto, Sonica
Esse, Terios Kid, (consigned cars: Porte, Sienta, Succeed and Probox)
*As of April 1, 2006
Overseas Offices
• Tianjin Office
Room. 1403, Tianjin International Building, 75,
Nanjing Road, Heping District, Tianjin, 300050,
P.R. CHINA
Phone:
+86-22-2339-2660
Facsimile: +86-22-2339-2630
• Jilin Office
Room. 3303, Century hotel Jilin 77,
Jilin Street, Jilin City, Jilin Province,
132013, P.R. CHINA
Phone:
+86-432-456-6601
Facsimile: +86-432-456-6609
• Beijing Office
Room. 3801, Jing Guang Centre, Hujialou,
Chaoyang District, Beijing, 100020,
P.R. CHINA
Phone:
+86-10-6597-4178
Facsimile: +86-10-6597-4180
• Changchun Office
Room. 909, Shangri-La hotel,
569 Xi’an Road, Changchun,
130061, P.R. CHINA
Phone:
+86-431-8982-057
Facsimile: +86-431-8982-077
• Representative Office in Europe
Hermesstraat 8C, 1930, Zaventem, Belgium
Phone:
+32-(0) 2-725-0973
Facsimile: +32-(0) 2-721-3174
33
1-1, Daihatsu-cho, Ikeda,
Osaka 563-8651, Japan
http://www.daihatsu.com
Printed in Japan on recycled paper