Slides
Page 1
FY2027 First Quarter Financial Results (Apr. 2026 – Jun. 2026) Aug 3, 2026 ISUZU MOTORS LIMITED "ELFmio" Light-duty trucks can be driven with a Japanese regular driver's license
Page 2
Contents 1 1. Overview 2. Financial Results for FY2027 First Quarter (Apr. 2026 – Jun. 2026)
Page 3
1. Overview 2
Page 4
Overview: Financial Results for FY2027 First Quarter (Apr. 2026 – Jun. 2026) ◼ Profits: Despite lower unit sales for both CVs and LCVs, operating profit increased by JPY 17.6 billion year on year, supported by steady progress in price realization and cost reduction activities, favorable foreign exchange effects, and the fact that cost increases resulting from the situation in the Middle East have not yet fully materialized. ◼ CV: In Japan, unit sales declined due to the model changeover, as well as longer-than-expected lead times at body builders. In overseas markets, unit sales declined due to shipment delays to the Middle East caused by the Strait of Hormuz blockade, as well as an approximately 3,000-unit reduction resulting from limited shipping availability for various export destinations. ◼ LCV: In Thailand, unit sales were flat year on year amid challenging market conditions. In export markets, unit sales declined, mainly due to shipment delays to the Middle East, as in the CV business. 3 Global Sales Units (K-units) '25/4 – '25/6 '26/4 – '26/6 Changes Foreign Exchange Rate'25/4 – '25/6 '26/4 – '26/6 Change CV Total Japan 20 18 -2 -9% USD/JPY 144.5 159.4 +14.9 Overseas 59 52 -7 -12% AUD/JPY 92.7 113.2 +20.5 79 70 -9 -11% EUR/JPY 163.9 185.3 +21.4 LCV Total Thailand 13 15 +2 +23% THB/JPY 4.37 4.90 +0.53 Export 50 47 -3 -7% 63 62 -1 -1% Total 142 132 -10 -7% Financial Results (Bil. Yen) Revenue 779.9 832.5 +52.6 +7% Operating Profit 57.2 74.8 +17.6 +31% Profit before Tax 64.2 81.4 +17.2 +27% Profit Attributable to Owners of Parent 41.4 50.9 +9.5 +23% Refer to page 31 for explanation of the following words: CV (Commercial Vehicle) =Trucks & Buses, LCV (Light Commercial Vehicle) = Pickup trucks and vehicles deriving from pickup trucks ◼ Full-Year Outlook: No changes to the global unit sales or earnings outlook from that announced in May. *The outlook announced in May is reproduced in the Supplementary Materials on pages 20–22.
Page 5
2. Financial Results for FY2027 First Quarter (Apr. 2026 – Jun. 2026) 4
Page 6
Impact of the Middle East Situation on FY2027 ('26/4–'27/3) [1] 5 Procurement <Petroleum-based materials> ・ Naphtha prices rose to approximately 1.8 times the pre-conflict level in April and remain volatile. Petroleum-based materials: such as paint solvents, resins, rubber, adhesives, lubricants, and cutting oils. Logistics <For the Middle East> ・ The Strait of Hormuz route remains unavailable, and shipments resumed in May using alternative logistics routes. Freight costs remain more than five times normal levels, shipping disruptions continue, and available shipping capacity remains limited. <For other regions> ・ Transportation costs have increased due to higher fuel prices. ・ Shipping efficiency has declined due to the situation in the Middle East, resulting in shipping disruptions and limited vessel availability. Production and Shipments <Shipments of completely built-up CV/LCV vehicles to the Middle East> ・ Shipments: Resumed gradually from June for both CVs and LCVs. ・ Production: Gradually resumed from July for CVs and from June for LCVs. <Knock-down shipments of CV to the Middle East> ・ Production was scaled down from April through May, and shipments gradually resumed from May. Ongoing impacts at present Both production and shipments were carried out only for units for which vessel capacity had been secured.
Page 7
Impact of the Middle East Situation on FY2027 ('26/4–'27/3) [2] 6 Full-Year Outlook First Quarter Results Procurement ・ Procurement costs for petroleum-based materials are increasing due to higher naphtha prices. -10.0 (impact over 12 months) The impact of higher procurement costs is expected to materialize from the second quarter onward. -0.5 Logistics ・ For the Middle East, although alternative routes are expected to be available, transportation costs are expected to increase. Additional costs are incurred due to the reshipment of inventory delayed at sea. ・ For other regions, transportation costs are increasing. -10.0 (impact over 12 months) ・ For the Middle East, shipments of both CVs and LCVs have resumed via higher- cost alternative logistics routes. ・ For other regions, transportation costs continue to increase. -2.0 Production Shipments Sales CV/LCV ・ For the Middle East, shipment delays are expected to result in a reduction in full-year unit sales, equivalent to approximately one month’s sales, compared with the pre-conflict outlook. (CV: - 3.5 thousand units; LCV: - 2 thousand units). -3.5 ・ In the first quarter, shipment delays in April and May resulted in a reduction in unit sales equivalent to approximately two months of sales. (1Q: CV: -4.5 thousand units; LCV: -3 thousand units) ・ For the full year, only approximately one month's sales are expected to be recovered. -4.5 CV ・ For overseas CV sales, higher crude oil prices are expected to affect market conditions. >> In some markets, a downside risk of approximately 10% lower unit sales versus the pre-conflict outlook is factored in. (CV: -22 thousand units) -13.5 ・ No significant decline in demand was observed in the first quarter. We will continue to closely monitor market conditions. - LCV ・ For LCVs in Thailand, the demand recovery expected from the second half has been delayed due to higher crude oil prices. >> Unit sales are expected to remain at the FY2026 level. (LCV: -10 thousand units versus the pre-conflict outlook) -4.0 ・ For LCVs in export markets, higher crude oil prices are expected to affect market conditions. >> In some markets, a downside risk of approximately 10% lower unit sales versus the pre-conflict outlook is factored in. (LCV: -10 thousand units) -4.0 Price ・ We are considering pricing measures to respond to increasing transportation costs. +5.0 ・ Price negotiations have commenced in response to higher transportation costs. +0.0 -40.0 -7.0 Summary of Operating Profit Impact (Bil. Yen) (Bil. Yen) Impact Incorporated into the FY2027 Operating Profit Outlook ('26/4–'27/3) Actual First-Quarter Operating Profit Impact
Page 8
Global CV Unit Sales: Results for FY2027 First Quarter (Apr. 2026 – Jun. 2026) ◼ In Japan, unit sales declined due to the model changeover, as well as longer-than-expected lead times at body builders. ◼ In overseas markets, unit sales declined due to shipment delays to the Middle East (approximately 4.5 thousand units), as well as more severe-than-expected vessel shortages affecting other destinations (approximately 3 thousand units). ◼ The full-year unit sales outlook remains unchanged for both Japan and overseas markets. 7 * Note: Japan: Wholesale & Direct Sales to Customers; North America / Australia: Wholesale of Local Distributors; Other Regions: Shipment from Japan * Wholesale Units in China: 7 K-units ('25/4 – '25/6), 6 K-units ('26/4 – '26/6) 4 3 10 16 14 19 '26/3 '27/3 Europe 11 5 31 34 42 39 '26/3 '27/3 Middle East 7 6 20 20 27 26 '26/3 '27/3 Africa 4 4 9 10 13 14 '26/3 '27/3 Oceania 18 19 56 60 74 79 '26/3 '27/3 Asia (Including China) 2 2 10 11 12 13 '26/3 '27/3 UD Trucks- Japan 3 2 7 9 10 11 '26/3 '27/3 UD Trucks- Overseas 8 9 25 23 33 32 '26/3 '27/3 Central/South America 4 4 15 26 19 30 '26/3 '27/3 North America 18 16 62 71 80 87 '26/3 '27/3 Japan (K-units) ： 2Q-4Q (Jul.-Mar.) ： 1Q (Apr.–Jun.) CV FY2026 FY2027 Changes 1Q 2Q-4Q Full Year 1Q 2Q-4Q* Full Year* 1Q 2Q-4Q* Full Year* Japan 20 72 92 18 82 100 -2 +10 +8 Overseas 59 173 232 52 198 250 -7 +25 +18 Total 79 245 324 70 280 350 -9 +35 +26 *Outlook (Full-year outlook unchanged.) * For North American CVs, please refer to the supplementary materials on page 17-18 for the business environment and the reference on page 28 for initiatives. * Please refer to page 23 of the Reference for the regions where we have secured the No.1 market share, including LCVs.
Page 9
Market Share ISUZU 33.4% 27.1% 56.2% 48.6% 46.0% 44.0% 17.9% 19.5% UD Trucks 21.9% 21.1% 3.7% 3.9% 0.3% 0.3% - - 3.5 2.9 3.7 3.0 7.6 7.4 0.7 0.8 2.3 2.3 0.2 0.2 0.1 0.0 0 5 10 15 20 '25/4 – '25/6 '26/4 – '26/6 '25/4 – '25/6 '26/4 – '26/6 '25/4 – '25/6 '26/4 – '26/6 '25/4 – '25/6 '26/4 – '26/6 Others UD ISUZU Actual Japan Industry Sales and ISUZU's Market Share (Apr. 2026 – Jun. 2026) 8 ◼ Industry sales remained flat year on year across all vehicle classes. ◼ Market share declined in the heavy-duty, medium-duty, and light-duty (2–3 ton) segments due to the impact of other OEMs, while it increased in the light-duty (1–1.5 ton) segment. (K-units) Heavy-Duty Trucks (above 4 tons) Medium-Duty Trucks (4 tons) Light-Duty Trucks (2-3 tons) Light-Duty Trucks (1-1.5 tons) *1 The information below is presented based on the conventional classification of heavy- and medium-duty trucks combined. '26/4–'26/6 ： ISUZU 6.0 K-Units (Market Share: 34.9%), UD Trucks 2.5K-Units (Market Share: 14.8%) '25/4–'25/6 ： ISUZU 7.1 K-Units (Market Share: 42.2%), UD Trucks 2.5K-Units (Market Share: 14.8%) *2 The definitions of heavy-, medium-, and light-duty trucks are based on the ISUZU’s internal classification. 10.4 10.9 6.5 6.2 16.4 16.9 4.0 4.2 * "ELFmio" (light-duty truck that can be driven with a regular Japanese driver’s license), etc.
Page 10
Global LCV Unit Sales: Results for FY2027 First Quarter (Apr. 2026 – Jun. 2026) ◼ In Thailand, unit sales remained flat year on year amid continued challenging market conditions. ◼ In export markets, unit sales declined due to shipment delays to the Middle East, as with CVs. ◼ The full-year unit sales outlook remains unchanged for both Thailand and export markets. 9 6 5 11 12 17 17 '26/3 '27/3 Europe 13 15 47 48 60 63 '26/3 '27/3 Thailand 3 512 11 15 16 '26/3 '27/3 Central/South America 6 5 14 13 20 18 '26/3 '27/3 Others 5 4 13 14 18 18 '26/3 '27/3 Asia (Including China) 14 13 40 38 54 51 '26/3 '27/3 Africa 6 3 17 18 23 21 '26/3 '27/3 Middle East 10 12 36 37 46 49 '26/3 '27/3 Oceania *1 Note: LCV: Shipment from Thailand *2 Wholesale Units in China: 3 K-units ('25/4 – '25/6), 3 K-units ('26/4 – '26/6) LCV FY2026 FY2027 Changes 1Q 2Q-4Q Full Year 1Q 2Q-4Q* Full Year* 1Q 2Q-4Q* Full Year* Thailand 13 47 60 15 48 63 +2 +1 +3 Export 50 143 193 47 143 190 -3 +0 -3 Total 63 190 253 62 191 253 -1 +1 +0 (K-units) ： 2Q-4Q (Jul.-Mar.) ： 1Q (Apr.–Jun.) *Outlook (Full-year outlook unchanged.) * For Thailand LCVs, please refer to the supplementary materials on page 19 for the business environment and the Reference on page 29 for details on our sales initiatives.
Page 11
15 14 0 20 40 60 80 100 '25/4 – '25/6 '26/4 – '26/6 Others ISUZU 45 41 Actual Thailand Industry Sales and ISUZU's Market Share/Production Units of LCV (Apr. 2026 – Jun. 2026) 10 ◼ Industry Sales / Market Share: While challenging market conditions continue, market share was flat year on year, and we continue disciplined sales activities in preparation for a recovery in demand. ◼ Production remained flat year on year. ISUZU 33% 33% 13 15 32 32 18 15 0 20 40 60 80 100 '25/4 – '25/6 '26/4 – '26/6 KD Set Vehicle-Export Vehicle-Thailand LCV Production Units in Thailand(K-units) Thailand Industry Sales and ISUZU's Market Share of LCV (K-units) 6263 * Including PPV (Refer to page 31 for explanation) units sold by Chinese manufacturers. Market Share
Page 12
Actual Global Shipments of Industrial Engines and Revenue from Aftersales Business (Apr. 2026 – Jun. 2026) 11 ◼ Industrial Engines / After-sales: Both in Japan and overseas markets progressed steadily, with year-on-year growth. 27 31 100 114 0 20 40 60 80 100 120 140 160 '25/4 – '26/3 '26/4 – '27/3 Global Shipments of Industrial Engines 141.0 147.0 480.0 498.0 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 '25/4 – '26/3 '26/4 – '27/3 Revenue from Aftersales Business (Japan: Revenues from service and part sales; Overseas: Revenues from shipment of parts) 145 127 621.0 645.0 (Bil. Yen) (K-units) ： 2Q-4Q (Jul.-Mar.) ： 1Q (Apr.–Jun.) ： 2Q-4Q (Jul.-Mar.) ： 1Q (Apr.–Jun.) (Full-year outlook unchanged.) (Full-year outlook unchanged.) * Please refer to the Reference on page 24-26 for details on our After-Sales business initiatives.
Page 13
Breakdowns Change Sales/Model Mix -0.3 CV-Japan -2.5 CV-Overseas -2.5 LCV +0.5 Others +4.2 FX +19.0 USD +4.7 AUD +5.3 EUR -1.9 THB +9.4 Other Currencies +1.5 Steel, Oil Price etc. Fluctuation -9.5 Material Cost -7.5 Logistics Fees -2.0 Electricity, Gas etc. -0.0 Fixed Cost Fluctuation +2.2 Labor Cost -2.3 Others +4.5 The analysis of the changes in Operating Profit: FY2027 First Quarter (Apr. 2026 – Jun. 2026) vs. FY2026 First Quarter (Apr. 2025 – Jun. 2025) 12 ◼ Despite lower unit sales for both CVs and LCVs, operating profit increased by JPY 17.6 billion year on year, supported by steady progress in price realization and cost reduction activities, an improved foreign exchange environment, and the fact that cost increases resulting from the situation in the Middle East have not yet fully materialized. -0.3 -9.5+19.0 -1.7 Operating Profit for FY2027 First Quarter ('26/4-'26/6) (Bil. Yen) FX Rates '25/4–'25/6 '26/4–'26/6 Change USD/JPY 144.5 159.4 +14.9 AUD/JPY 92.7 113.2 +20.5 EUR/JPY 163.9 185.3 +21.4 THB/JPY 4.37 4.90 +0.53 Operating Profit for FY2026 First Quarter ('25/4-'25/6) +2.2 Breakdown of impact from the situation in the Middle East: -7.0 Procurement (Steel, Oil Price etc. Fluctuation - Material Cost) -0.5 Logistics (Steel, Oil Price etc. Fluctuation - Logistics Fees) -2.0 Sales (Sales/Model Mix - CV-Overseas) -3.0 Sales (Sales/Model Mix – LCV-Export) -1.5 +10.5 +4.5 Cost Reduction Activity 74.8 57.2 -5.7 -1.4 FX Steel, Oil Price etc. Fluctuation Fixed Cost Fluctuation Depreciation Cost Sales/ Model Mix Price Realization R&D Costs U.S. Tariff Impact +17.6
Page 14
Consolidated Results : FY2027 First Quarter (Apr. 2026 – Jun. 2026) vs. FY2026 First Quarter (Apr. 2025 – Jun. 2025) 13 26 年３月期 営業利益 (Bil. Yen) '25/4 – '25/6 '26/4 – '26/6 Changes Revenue 779.9 832.5 +52.6 +7% Operating Profit 57.2 74.8 +17.6 +31% Profit before Tax 64.2 81.4 +17.2 +27% Profit Attributable to Owners of Parent 41.4 50.9 +9.5 +23% '25/4 – '25/6 '26/4 – '26/6 Operating Profit 57.2 74.8 Share of profit of investments accounted for using equity method +2.8 +2.0 Finance income, Finance costs +4.2 +4.6 Profit before Tax 64.2 81.4 Income tax expense -13.9 -18.8 Profit attributable to non-controlling interests -8.9 -11.7 Profit Attributable to Owners of Parent 41.4 50.9
Page 15
Automotive Business Cash Allocation for FY2027 First Quarter (Apr. 2026 – Jun. 2026) ◼ By utilizing generated cash and flexible financing, ISUZU continues to cover growth investments, shareholder returns, and working capital requirements. ◼ In the first quarter, cash outflows related to working capital increased due to shorter payment terms for suppliers and a temporary increase in inventory resulting from the situation in the Middle East and vessel shortages. 14 借入 Debt financing (as required) Operating CF Operating CF Debt financing (As Required) CAPEX Shareholder Returns Working Capital Cash-in Cash-out Financing / Borrowings (As needed) Capital Expenditures Shareholder Returns Working capital Cash flows from operating activities (Profit for the period) + (Depreciation and amortization) + （ Increase/decrease in inventories, etc. ） Full-Year Policy First-Quarter Results ・ ISUZU will steadily execute 160.0 billion yen in various growth investments, such as the enhancement of domestic sales networks, the new CV plant in North America, and the transfer of heavy-duty truck production to the UD Trucks Ageo Plant in Japan. ・ Progress is in line with plan, with capital expenditures of approximately 42.5 billion yen. ・ Dividends are expected to total approximately 65.0 billion yen, assuming an annual dividend of 94 yen per share. ・ Share Repurchases: Policy remains unchanged to execute flexibly, while maintaining appropriate equity levels. ・ No change to the dividend policy. ・ Share repurchases remain under consideration and will be disclosed once the situation in the Middle East has been assessed. ・ Optimizing payment terms is intended to help ease the working capital requirements of our suppliers by approximately 100.0 billion yen. ・ As of the end of the first quarter, shorter payment terms have contributed approximately 90.0 billion yen toward reducing suppliers' working capital burden. ・ Vehicle inventories increased temporarily due to the situation in the Middle East and vessel shortages affecting other destinations, resulting in a temporary increase in working capital of approximately 35.0 billion yen.
Page 16
Segment Information for FY2027 First Quarter (Apr. 2026 – Jun. 2026) ◼ In the Automotive Business, cash and cash equivalents are maintained at a level broadly in line with interest-bearing liabilities. In the Financial Services Business, operations are managed under a policy of funding lease assets with interest-bearing liabilities. ◼ In the first quarter, the Automotive Business utilized interest-bearing debt to fund the implementation of shorter supplier payment terms and the increase in vehicle inventories. 15 Revenue ・ Operating Profit ‘25/4 – '25/6 '26/4 – '26/6 Changes Automotive Business and Adjustments Financial Services Total Automotive Business and Adjustments Financial Services Total Automotive Business and Adjustments Financial Services Total Revenue 736.2 43.7 779.9 783.6 48.9 832.5 +47.4 +5.2 +52.6 Operating Profit 54.1 3.1 57.2 71.5 3.3 74.8 +17.4 +0.2 +17.6 Operating Profit Margin (%) 7.4% 7.1% 7.3% 9.1% 6.7% 9.0% +1.7ppt -0.4ppt +1.7ppt Balance Sheet Highlights: Cash and Cash Equivalents ・ Lease Assets ・ Interest-Bearing Liabilities ・ Shareholders' Equity March 31, 2026 June 30, 2026 Changes Cash and Cash Equivalents 372.0 4.2 376.2 387.6 3.5 391.1 +15.6 -0.7 +14.9 Financial Services assets *3 - 409.8 409.8 - 415.0 415.0 - +5.2 +5.2 Interest-Bearing Liabilities (excluding Lease Liabilities) *4 375.5 368.5 744.0 510.4 384.5 894.9 +134.9 +16.0 +150.9 Equity Attributable to Owners of Parent 1,452.8 26.7 1,479.5 1,482.2 25.3 1,507.5 +29.4 -1.4 +28.0 Ratio of equity attributable to owners of parent to total assets (%) 45.3% 5.9% 40.4% 45.7% 5.5% 40.7% +0.4ppt -0.4ppt +0.3ppt Net Debt/Equity Ratio 0.00 13.66 0.25 0.08 15.07 0.33 +0.08 +1.41 +0.08 *1 In the Financial Services Business, we primarily provide vehicle leasing and maintenance contract services to support sales of vehicles manufactured by the ISUZU Group. *2 The Financial Services Business comprises two companies: Isuzu Leasing Services (Japan) and Isuzu Financial Services Australia Pty Ltd. (Australia; scheduled to commence operations in October 2026). *3 Financial Services assets: Total of lease receivables and vehicles held for lease. *4 Interest-Bearing Liabilities: Total of bonds, borrowings, and commercial paper, excluding lease liabilities. (Bil. Yen) 3
Page 18
<1Q Results> ◼ Both wholesale and retail unit sales were slightly below expectations due to higher fuel prices. <Full-year outlook > ◼ Orders remain solid, and there is no change to the assumption that gradual market recovery will lead to the start of dealer inventory replenishment in the second half. However, there is a risk that the pace of the recovery may be slightly slower than previously expected. >> Wholesale unit sales are expected to be 30 thousand units (unchanged from the outlook announced in May). 17 (Supplementary Materials) CVs in North America [1] Sales Volume (Wholesale) Forecast Trends in Wholesale, Retail, Dealer Inventory and Order Intake (K-units) 44 27 19 30 39 42 45 0 10 20 30 40 50 '24/3 '25/3 '26/3 '27/3 ー :The Unit Assumption under the Quantitative Targets for FY2027 in the Mid-Term Business Plan ー :Actual & Outlook '24/3 '25/3 '26/3 '27/3 1Q 2Q 3Q 4Q Full Year 1Q Actual 2Q-4Q Outlook Full Year Outlook Wholesale 44 27 4 4 5 6 19 4 26 30 Retail 32 29 7 7 6 5 25 6 24 30 Dealer Inventory 23 20 17 14 13 14 14 12 14 14 Order Intake 37 17 5 5 6 7 23 7 (K-units)
Page 19
◼ Import tariff rates have been raised in phases following changes in U.S. trade policy since April 2025. ◼ Although price increases were implemented in response to higher tariff costs, full cost pass-through has been difficult due to price competition, resulting in a negative impact on earnings. ◼ Although tariffs imposed under the IEEPA*¹ may be eligible for refunds*² and tariffs on medium- and heavy-duty trucks may be eligible for offset*³, neither has been factored into the earnings outlook at this stage. 18 (Supplementary Materials) CVs in North America [2]: Changes in the Impact of U.S. T ariffs ~ FY2025 FY2026 FY2027 Apr. 2025 – Jul. 2025 Aug. 2025 – Oct. 2025 Nov. 2025 – Mar. 2026 Import Costs Major Policy / Regulatory Changes No additional tariffs Additional tariffs imposed under the IEEPA*¹ Transition to country- specific reciprocal tariffs under the IEEPA*¹ Tariffs on medium- and heavy-duty trucks imposed under Section 232 of the Trade Expansion Act Continued Tariff Rate 4% 14% (4+10%) 15% (4+11%) 29% (4+25%) 29% (4+25%) U.S. Tariff Impact Included in the Operating Profit Analysis (YoY) － -16.0 billion yen -13.0 billion yen (Based on 30 thousand unit sales) *1 IEEPA: INTERNATIONAL EMERGENCY ECONOMIC POWERS ACT *2 Following the U.S. Supreme Court's ruling in February 2026, that tariffs imposed under the IEEPA are unlawful and invalid, tariffs already paid may become eligible for refunds. *3 The Presidential Proclamation issued in October 2025, provides for an offset mechanism applicable to tariffs on medium- and heavy-duty trucks imposed under Section 232 of the Trade Expansion Act.
Page 20
<1Q Results> ◼ Retail unit sales recovered to year-on-year flat levels in June after being slightly below expectations in April and May due to rising fuel prices resulting from the situation in the Middle East. <Full-year outlook > ◼ There is no change from the outlook announced in May. Demand recovery is expected to be delayed, remaining at approximately the FY2026 level. >> Wholesale unit sales are expected to be 63 thousand units. 19 (Supplementary Materials) LCVs in Thailand 90 110 130 128 46 60 63 0 50 100 150 200 '24/3 '25/3 '26/3 '27/3 ー :The Unit Assumption under the Quantitative Targets for FY2027 in the Mid-Term Business Plan ー :Actual & Outlook 5.2 5.3 7.3 5.5 6.1 6.4 4.9 5.1 4.8 4.5 4.7 4.1 4.4 5.5 7.3 5.8 6.2 5.6 4.2 4.6 4.8 13.4 14.5 18.9 15.4 16.2 18.4 14.2 15.2 15.3 14.8 14.6 14.3 13.6 15.2 20.4 15.7 17.4 17.9 12.6 14.4 14.2 0.0 4.0 8.0 12.0 16.0 20.0 24.0 Oct '25 Nov Dec Jan '26 Feb Mar Apr May Jun Jul Aug Sep 千 Retail Unit Sales Trend Sales Volume (Shipments) Forecast (K-units) (K-units) ーー Oct.2024~Sep.2025 Oct.2025~Jun.2026 Total industry demand ISUZU *The figures are presented including PPV units sold by Chinese manufacturers.
Page 21
20 Global Sales Units (K-units) '25/4 – '26/3 '26/4 – '27/3 Changes Foreign Exchange Rate '25/4 – '26/3 '26/4 – '27/3 Change CV Total Japan 92 100 +8 +8% USD/JPY 150.7 155.0 +4.3 Overseas 232 250 +18 +8% AUD/JPY 99.8 110.0 +10.2 324 350 +26 +8% EUR/JPY 174.8 185.0 +10.2 LCV Total Thailand 60 63 +3 +4% THB/JPY 4.67 4.95 +0.28 Export 193 190 -3 -2% 253 253 +0 +0% Total 577 603 +26 +4% Financial Forecast (Bil. Yen) Revenue 3,479.1 3,700.0 +220.9 +6% Operating Profit 203.7 260.0 +56.3 +28% Profit before Tax 230.6 260.0 +29.4 +13% Profit Attributable to Owners of Parent 134.9 160.0 +25.1 +19% Dividends per Share 92 Yen 94 Yen +2 Yen (Unchanged from the Outlook Announced in May) (Supplementary Materials) [Reproduced] Outlook for FY2027 (Apr. 2026 – Mar. 2027)
Page 22
Breakdowns Change Sales/Model Mix +48.0 CV-Japan +9.0 CV-Overseas +27.0 LCV +1.5 Others +10.5 FX +29.0 USD +5.0 AUD +10.0 EUR -4.0 THB +14.0 Other Currencies +4.0 Steel, Oil Price etc. Fluctuation -60.0 Material Cost -50.0 Logistics Fees -10.0 Electricity, Gas etc. -0.0 Fixed Cost Fluctuation -14.2 Labor Cost -10.0 Others -4.221 203.7 -60.0 -12.0 +48.0 +67.0 +29.0 -13.0 +18.0 -6.5 -14.2 260.0 Cost Reduction Activity FX Steel, Oil Price etc. Fluctuation Fixed Cost Fluctuation Depreciation Cost Sales/ Model Mix Price Realization R&D Costs U.S. Tariff Impact Operating Profit for FY2026 ('25/4 – '26/3) Operating Profit for FY2027 ('26/4 – '27/3) (Bil. Yen) +56.3 Breakdown of impact from the situation in the Middle East: -40.0 Procurement (Steel, Oil Price etc. Fluctuation - Material Cost) -10.0 Logistics (Steel, Oil Price etc. Fluctuation - Logistics Fees) -10.0 Sales (Sales/Model Mix - CV-Overseas) -16.0 Sales (Sales/Model Mix - LCV) -9.0 Sales (Price Realization) +5.0 FX Rates '25/4–’26/3 '26/4–’27/3 Change USD/JPY 150.7 155.0 +4.3 AUD/JPY 99.8 110.0 +10.2 EUR/JPY 174.8 185.0 +10.2 THB/JPY 4.67 4.95 +0.28 (No Changes from the Outlook Announced in May) * The impact of the situation in the Middle East (-40.0 billion yen) is reflected in the relevant components. (Supplementary Materials) [Reproduced] The analysis of the changes in Operating Profit : Outlook for FY2027 (Apr. 2026 – Mar. 2027) vs. Actual for FY2026 (Apr. 2025 – Mar. 2026)
Page 23
22 26 年３月期 営業利益 (Bil. Yen) '25/4 – '26/3 '26/4 – '27/3 Changes Revenue 3,479.1 3,700.0 +220.9 +6% Operating Profit 203.7 260.0 +56.3 +28% Profit before Tax 230.6 260.0 +29.4 +13% Profit Attributable to Owners of Parent 134.9 160.0 +25.1 +19% '25/4 – '26/3 '26/4 – '27/3 Operating Profit 203.7 260.0 Share of profit of investments accounted for using equity method +15.0 +8.0 Finance income, Finance costs +11.9 -8.0 Profit before Tax 230.6 260.0 Income tax expense -56.0 -60.0 Profit attributable to non-controlling interests -39.7 -40.0 Profit Attributable to Owners of Parent 134.9 160.0 (Unchanged from the Outlook Announced in May) (Supplementary Materials) [Reproduced] Consolidated Outlook : FY2027 (Apr. 2026 – Mar. 2027) vs. FY2026 (Apr. 2025 – Mar. 2026)
Page 24
(Reference) Regions with ISUZU’s No.1 Market Share 23 Europe 5 countries/regions Asia 8 countries/regions ◼ ISUZU holds the No.1 market share for vehicle models in 36 countries/regions worldwide (According to ISUZU’s survey, as of CY2025) Ireland Sweden Cyprus Turkey Réunion (*1) Source: According to ISUZU’s survey based on available data, such as data from automobile industry associations in each country and region. (*2) The following are examples of the No.1 market share vehicle models in each country and region. Ireland: Truck (GVW: 6.01–8t), Sweden: Pickup truck (MPC: 1t), Cyprus: Pickup truck (MPC: 1t), Turkey: Medium-duty truck (MPC: 6–16t), Réunion (French overseas department): Truck (MPC: 3.5–7.5t), Egypt: Light-duty truck (GVW: 4–9t), Republic of South Africa: Light-duty truck (GVW: 3.5–8.5t), Kenya: Light and medium-duty truck (GVW: 3.5–19t), Tunisia: Pickup truck (MPC: 1t), Mauritius: Light-duty truck (GVW: 3.0–9t), Seychelles: Light-duty truck (GVW: 3.0–9t), Japan: Light-duty truck (MPC: 2–3t), Medium- duty truck (MPC: 4t), Heavy-duty truck (MPC: ≥6t), Heavy-duty bus (overall width 2.5 meters), Thailand: Truck (MPC: ≥2t), Philippines: Truck and bus (GVW: >3t), Malaysia: Truck (GVW: ≥3t, excluding tractors), Vietnam: Truck (GVW: 3.5–24t), Cambodia: Truck, Pakistan: Truck (all categories, excluding buses), Hong Kong: Truck (GVW: 3.5–44t), U.S.: Cab-over truck (GVW: 4.5–8.8t), Canada: Cab-over truck (GVW: 4.5–8.8t), Australia: Truck (all models combined), New Zealand: Truck (all models combined), Papua New Guinea: Truck (MPC: ≥1t), Fiji: Truck (MPC: ≥1.5t, excluding buses), Ecuador: Light-duty truck (MPC: 3–9t), Peru: Truck (GVW: ≥3t), Colombia: Truck (GVW: ≥3t), Barbados: Truck, Grenada: Pickup truck (MPC: 1t), Paraguay: Truck, Trinidad and Tobago: Truck, Costa Rica: Truck, Panama: Truck, Aruba: Pickup truck (MPC: 1t), Chile: Light-duty truck (GVW: 3–9t) (*3) Although Réunion (French overseas department) is located in the Indian Ocean east of Madagascar, it is classified as part of Europe (France) in this document. Japan Thailand Philippines Malaysia Vietnam Cambodia Pakistan Hong Kong North America 2 countries/regions U.S. Canada The Near and Middle East / Africa 6 countries/regions Egypt South Africa Kenya Tunisia Mauritius Seychelles Oceania 4 countries/regions Australia New Zealand Papua New Guinea Fiji Central and South America 11 countries/regions Ecuador Peru Colombia Barbados Grenada Paraguay Trinidad and Tobago Costa Rica Panama Aruba Chile
Page 25
◼ After-sales revenue has maintained a steady growth trend, more than doubling over the past decade. ◼ Revenue expanded significantly in Japan, driven by the expansion of maintenance lease contracts and advances in predictive maintenance, along with growth in ISUZU’s CV units in operation globally. 208.5 218.6 219.8 220.6 226.7 297.4 346.4 368.7 383.0 416.0 94.5 74.3 96.5 102.1 103.7 89.4 130.7 170.6 182.3 195.0 205.0 52.5 282.8 315.1 321.9 324.3 316.1 428.1 517.0 551.0 578.0 621.0 645.0 0.0 100.0 200.0 300.0 400.0 500.0 600.0 700.0 800.0 900.0 1,000.0 '17/3 '18/3 '19/3 '20/3 '21/3 '22/3 '23/3 '24/3 '25/3 '26/3 '27/3 Overseas Japan After-sales Revenue and ISUZU’s CV Units in Operation ISUZU’s CV Units in Operation ('17/3) Japan 1,240K units Overseas 2,480K units Total 3,720K units ISUZU’s CV Units in Operation +16% Revenue +120% Units in Operation: The number of vehicles sold as new by the Group that are currently owned and in operation by customers. Figures are based on the Company’s internal estimates calculated as follows: Japan: calculated based on data from the Japan Automobile Inspection & Registration Information Association. Overseas: calculated primarily based on sales data by year and country. (Reference) After-Sales Business Overview (Bil. Yen) ISUZU’s CV Units in Operation ('26/3) Japan 1,570K units Overseas 2,740K units Total 4,310K units April 2021: UD Trucks joined the ISUZU Group (Outlook) 24 1Q Results
Page 26
(Reference) After-Sales Business Overview (Japan) ◼ Given their high cumulative mileage and the high frequency of maintenance, including inspections, the CV after-sales business represents a sizable market. ◼ Leveraging a nationwide network of over 400 sales and service locations, ISUZU aims to drive further growth through the expansion of maintenance lease and connected services in Japan. Heavy-duty truck Medium-duty truck Light-duty truck Passenger Cars 900–1,000K Km 400–500K Km 200–300k Km 150k Km Lifecycle (Total Cumulative Mileage) Heavy- /Medium- Duty Trucks ∙ Vehicle inspection: Every year ∙ Mandatory inspection: 3 times per year ∙ Number of inspection items: Over 100 Light-Duty Trucks ∙ Vehicle inspection: First after 2 years, then annually ∙ Mandatory inspection: 3 times per year ∙ Number of inspection items: 70–80 Passenger Cars ∙ Vehicle inspection: First after 3 years, then once every 2 years ∙ Mandatory inspection: Once per year ∙ Number of inspection items: Approx. 50–60 Key Differences in Vehicle Inspection Systems Lifetime Truck Revenue (Illustration) New Vehicle Sales 60% After-Sales Services 40% ✓Parts Sales ✓Maintenance & Repair ✓Used Vehicles etc., Network of locations Number of locations * Service Centers Approx. 420 locations Consolidated Service Centers (included) Approx. 300 locations An Extensive Nationwide Network Lease Contracts Number of Vehicles Under Contracts Number of Vehicles Under Lease Contracts Approx. 120K units Maintenance Leases (included) Approx. 90K units Total Lease Assets Approx. JPY 400.0 billion Growth of ISUZU’s Lease Contracts and Connected Vehicles Connected Services Number of Connected Vehicles* PREISM* & Supported vehicles in operation Over 490K units (Note) The total mileage of each vehicle reflects the ISUZU’s assumptions based on the operating environment of commercial vehicles. (Note) The breakdown of lifetime revenue is based on ISUZU’s internal estimates. *As of the end of '26/3. *PREISM: Advanced Genuine Maintenance Service utilizing vehicle data*As of the end of '26/3. 25
Page 27
(Reference) Growth Strategies for the After-Sales Business Japan Overseas Parts Sales Sales and export of parts for repair ✓ ✓ Vehicle Services Maintenance services through extensive service networks ✓ Finance Services Financial services centering on stable maintenance leasing services ✓ Connected Service Swift repair in the event of vehicle failure and preventative maintenance services through “operation management” and “uptime support services” ✓ <Main Services> Japan Overseas Service Bases* 400 or more 3,500 or more ISUZU’s CV Units in Operation (10K)** 157 274 <Number of Services Bases and ISUZU’s CV Units in Operation> Room for Growth (1) (2) 26 Initiatives up to now Initiatives going forward Expansion of customer contacts by a proximity-to-market approach and structural reform focusing on after-sales service (2) Strategic initiatives overseas Transform into a “Value Provider” supporting stable operations • Consistency of operation quality and parts price • Accelerating overseas market expansion for connected services and maintenance leasing services :Roll out programs required for the introduction of commercial EVs :Introduce Maintenance Lease + Overseas Connected Services :Establish a maintenance lease system and develop services including UD maintenance packages (1) Strategic initiatives in Japan Drive revenue growth in Japan through further strengthening of the service network and efficiency improvements. • Establish new service locations in high-demand areas and enhance capacity to meet growing demand. • Drive further growth in the leasing business (Target 150,000 vehicles under lease contracts and assets of approximately 500.0 billion yen) • Expand connected vehicle units through new model rollout North America Australia & ASEAN ** The number is based on the ISUZU’s internally compiled data as of the end of '26/3. *As of the end of '26/3.
Page 28
Commencement of a Study on a Merger between ISUZU and UD Trucks Study on the Integration of Domestic Sales Functions Introduction of a common platform 2028 in Japan, 2029 overseas Integration of sales finance companies Establishment of OEM supply system for UD Begin production of ISUZU vehicles at UD Thailand facility (Reference) Creation of Synergies with UD T rucks 27 ■ Since the integration of UD Trucks into the Group, ISUZU has steadily promoted business restructuring and functional integration across a wide range of areas, realizing synergy effects. ■ ISUZU has commenced consideration toward the integration of management resources and will work to build a stronger and more sustainable management foundation, create higher added value through optimal allocation of functions, and accelerate decision-making processes. Initiatives to Create SynergiesProduct Marketing and sales financial services Heavy-Duty Medium-Duty Light-Duty Function Production and Logistics Joint development of new tractor heads Strengthening of cooperation through joint sales and service channels Utilizing Volvo Group technology Sales growth of UD OEM-supplied vehicles overseas '24/3 '25/3 '26/3 14.0 19.0 23.0 Start of OEM supply for UD Start of shared use of warehouse for repair parts and joint delivery Transfer heavy-duty truck production from Fujisawa Plant to UD Trucks’ Ageo Plant Integration of Overseas Sales Functions '26/3 Integration of Domestic Sales Functions Synergy Effects: Results (Bil. Yen)
Page 29
(Reference) CV Business (Overseas): Initiatives in North America 28 The North American commercial vehicle market is dominated by large, conventional (hood-type) trucks used for long-haul loads, but ISUZU has established a position in the niche market for light- to medium-duty low cab forward (LCF) trucks, where there is little competition. ISUZU’s share in LCF truck market Exterior of new production facility (image courtesy of Colliers International) ◼ The LCF truck market in North America is a niche segment primarily serving urban delivery applications. With competitors having withdrawn from the market, ISUZU holds an overwhelming market share in this segment. ◼ ISUZU has developed a dealer network of over 350 locations across the United States and Canada. ISUZU is working to expand sales by taking advantage of the features of LCF trucks, which are easy to maneuver in narrow spaces, particularly for urban and delivery applications. ISUZU’s Current Market Positioning Truck Type Breakdown: (Class 3–5*) Needs-Based Product Lineup Light-Duty Trucks （ Class 3-5* ） Medium-Duty Trucks (Class 6-7**) Diesel Engines Gasoline Engines BEV Diesel Engines Hood-type Trucks etc. Overall market 112k units （ CY25 ） Launch of a North American Production Base • In February 2025, we decided to establish a new production facility in the U.S. state of South Carolina to strengthen our supply framework in North America. • We aim to bring the new plant on stream in 2027, with the goal of reaching an annual production of 50,000 units by 2030. • Total investment is approximately US$280 million (approximately 43.0 billion yen). In response to environmental regulations, we will introduce flexible production methods for both internal combustion engine and electric vehicles. *ISUZU brand only, 98% including OEM supply. Low Cab Forward (LCF) Trucks *Class 3–5 ： Gross Vehicle Weight (GVW) 4.5-8.8t **Class 6–7 ： Gross Vehicle Weight (GVW) 8.8-15t 82%*
Page 30
◼ Since introducing short-hood trucks to the Thai market in 1961, ISUZU has been committed to delivering durable, fuel-efficient vehicles tailored to commercial needs, alongside ongoing efforts to enhance its brand strength. Following the original D-MAX in 2002, the Company has steadily expanded its market share by continuously refining its design and functionality in line with the needs of the Thai market. ◼ Through continuous efforts, such as avoiding discount sales through a disciplined sales policy and maintaining high resale value, the ISUZU brand has solidified its position in the Thai market. 394 425 512 492 410 394 455 325 200 188 196 33% 34% 32% 31% 41% 42% 43% 42% 37% 34% 33% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 0 100 200 300 400 500 600 700 800 900 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Industry Sales of LCV ISUZU's Market Share The Sturdiness to withstand high operating rates Maintain pricing discipline High Resale Value Maintain or enhance Brand Value (Reference) LCV Business: Initiatives in Thailand Thailand Industry Sales (K-units) and ISUZU's Market Share of LCV Used for transporting heavy goods such as vegetables < Main usage > The main users of ISUZU's pickup trucks in Thailand are farmers and merchants who use ISUZU vehicles for commercial purposes. ISUZU has succeeded in acquiring a loyal customer base by adopting a sales method that keeps the asset value of its vehicles ISUZU Brand Rooted in Thai industry The sturdiness to meet commercial use and the High Resale Value helping households ・ The main users of ISUZU pickup trucks are farmers and merchants, who rank first and second in Thailand’s workforce. Approximately 50% of customers use ISUZU's pickup trucks for commercial purposes. (including both passenger and commercial use) (CY) 29 (Outlook) * Starting with CY2025, Chinese manufacturers’ PPV units have been included in the aggregation. Jan-Jun Actual 92
Page 31
28.0 29.0 30.0 31.0 32.0 33.0 34.0 35.0 36.0 37.0 38.0 '24/3 '24/6 '24/9 '24/12 '25/3 '25/6 '25/9 '25/12 '26/3 '26/6 '26/9 '26/12 '27/3 (Reference) Exchange Rate T rends: USD/THB & AUD/THB 30 18.0 19.0 20.0 21.0 22.0 23.0 24.0 25.0 26.0 27.0 28.0 '24/3 '24/6 '24/9 '24/12 '25/3 '25/6 '25/9 '25/12 '26/3 '26/6 '26/9 '26/12 '27/3 USD/THB AUD/THB (THB) (THB) '24/4-'25/3 (Actual) 34.8 (Average) '25/4-'26/3 (Actual) 32.3 (Average) '26/4-'27/3 (Outlook) 31.3 (Average) '24/4-'25/3 (Actual) 22.7 (Average) '25/4-'26/3 (Actual) 21.4 (Average) '26/4-'27/3 (Outlook) 22.2 (Average) '25/4-'25/6 (Actual) 33.1 (Average) '26/4-'26/6 (Actual) 32.5 (Average) '25/4-'25/6 (Actual) 21.2 (Average) '26/4-'26/6 (Actual) 23.1 (Average)
Page 32
(Reference)Word Glossary of Product Lineup 31 CV (Commercial Vehicle)CV （ Commercial Vehicle ） ■ Collectively refers to trucks and buses ■ Trucks are manufactured and exported mainly from Japan (ISUZU: Fujisawa Plant in Kanagawa Prefecture, UD Trucks: Ageo Plant in Saitama Prefecture） ■ Buses are manufactured by J-Bus Limited, a joint venture with Hino Motors, Ltd and sold under both ISUZU and Hino brands LCV （ Light Commercial Vehicle ） ■ Collectively refers to 1-ton pickup trucks and PPV (Pick-up Passenger Vehicle) deriving from pickup trucks ■ Mainly manufactured and exported from Thailand "D-MAX" pickup trucks "MU-X" PPV ＜ Major Product Lineups ＞ Lightweight Truck for Emerging Markets ■ A full-fledged lightweight truck for emerging markets, based on the ISUZU D-MAX pickup truck and incorporating ISUZU’s accumulated commercial vehicle technologies ■ Mainly manufactured and exported from Indonesia "GALA" sightseeing bus "TRAGA" *Indonesian model "ELFmio" Light-duty trucks can be driven with a Japanese regular driver's license "C&E Series" and "Quon" heavy-duty trucks "F-Series" medium-duty truck "N-Series" light-duty truck "ERGA" route bus ＜ Major Product Lineups ＞
Page 33
Customers & Non-Consolidated Companies ISUZU MOTORS LIMITED UD Trucks Corporation Isuzu Motors Co., (Thailand) Ltd. ISUZU LEASING SERVICES LIMITED Consolidated Distributors & Consolidated Dealers Consolidated Subsidiaries Consolidated Sales Results: Unit Sales Disclosed in the English Translation of “Summary of Financial Results” (Kessan Tanshin) Vehicles for Japan, North America, Australia All Other Destinations CV Business LCV Business Consolidated Sales Results Global Unit Sales (Reference) Comparison of Global Unit Sales and Consolidated Sales Results 32
Page 34
Notice to The Readers This document is intended for informational purposes and includes, but not limited to, statements on future business performance and business plans. Information contained in the document, other than historical or current facts, constitutes forward-looking statements which are based on assumptions and judgments formed by the management of the Company in view of information currently available. By its nature, ISUZU does not guarantee or give any warranty as to the accuracy of all information contained in this document. Moreover, ISUZU undertakes no obligations to update such forward-looking statements such as statements on future business performance and business plans, based on future events or new information. Such statements involve elements of risk and uncertainty contained in such assumptions and judgments, and/or various factors including but not limited to economic changes in future, changes in automotive market conditions, foreign currency exchange rate fluctuations, and changes of business environment surrounding the Company. Such elements and/or factors may therefore cause the actual results and performance to be materially different from any future results and performance expressed or implied by the predictive statements stated herein. If you actually have an intention to invest, you should not depend upon this document as your sole source of information, and should use your own discretion in making an investment decision. Please be aware that ISUZU will not be responsible for any damages you may suffer as a result of making an investment decision based on the information contained in this document. 33