HINO Report - marketscreener.com · starting with the large-sized route bus in January 2005,...

HINO ReportApril 1, 2005 to March 31, 2006

Hino Motors Annual Report

01

I would like to use this occasion to sincerely thank our stakeholders for their steady support and the

special patronage afforded the Company in its activities.

I sometimes request the permission of customers of the Company to let me share a ride on their

trucks during a late-night haul over the expressway. I am doing this because I believe invaluable insight can

be gained from listening to the drivers who steer these trucks. Truly understanding what customers want,

and fulfilling these needs through technology and services. This is our mission.

In fiscal year 2005, we were able to increase sales and earnings despite headwinds that were stronger than

expected, such as increased expenses from efforts at quality enhancement and long-term cost

reduction, and high crude oil prices leading to weak sales in the Asian region.

To an extent, we are satisfied with what we achieved, but the satisfaction could be even greater yet. In

Japan and overseas, we will continue to focus our energies on our customer relationships, and as Hino

Motors Ltd. aspire to gain the support of customers worldwide.Hino Motors, Ltd.President

To ourStakeholders

02

Customer needs are becoming more diverse, involvingaspects such as environmental performance, safety, and fuel-economy, with the required levels rising year after year. As amanufacturer, our first calling is to supply vehicles that ourcustomers find useful. Thus, acting on our belief that makinggood cars means responding to customers needs, in 2005 wewere first to introduce vehicles compliant with the New Long-Term Emission Regulations (2005) and focused our efforts ontechnology surrounding the commercialization of advancedsafety features.Naturally, we are deeply involved also in technology

development geared at the successor regulations expectedfor 2010 to the New Long-term Emission Regulations. Thehigher the hurdles are now, once they are taken, the moresignificant the advantages will be later. This is what we havecome to understand. In technology development, HinoMotors aims to be a global frontrunner.

With pride and confidence, moving ahead as a frontrunner

Putting customer needs first ―in Japan and overseas

VISION 1

VISION 2

Heavy-duty truck compliant with the New Long-Term EmissionRegulations (2005)

Hino’s CNG-operated bus running inJakarta, Indonesia

Customer Technical Center

Special feature pages 3 -6

TOPICS pages 7-8

Business report pages 9 -16

Company outline and shareholders page 17

Directors and auditors page 18Contents

Customers who have bought our vehicles use them nearlyevery day for their business over a period of around ten yearsafter the purchase. In light of this fact, customer relationshipsshould not come to an abrupt end at the time the vehicle isdelivered. This thought is at the root of our determination to putyet greater energy than before into our service offerings forcustomers. As part of this concept, we have established aCustomer Technical Center as a facility where drivers canfind out first-hand about fuel-efficient driving and safetytechnologies.This concept of“serving the customer”does not change inour work overseas. By providing services tailored to theconditions and special aspects of each country, as HinoMotors Ltd. we aspire to gain the support of customersworldwide.

Scenes and impressions demonstrating Hino’s technological capabilities, high safety levels, concern for theenvironment, and spirit of challenge.Hino remains committed to its efforts as a global frontrunner in matters of safety and environmental protection.

Special Feature 1: Hino launches vehicles compliant with the New Long-Term Emission Regulations (2005)

Special Feature 2: Establishment of Hino’s Customer Technical Center

Special Feature 3: Symbol for Hino’s spirit of challenge: the Paris Dakar Rally

03

and enhanced gas mileage are difficult to reconcile. Nomatter how large the emission reduction, if gas mileage andengine performance fall off, the product will not find marketacceptance. The impetus to overcoming this problem camefrom realizing an engine featuring low revolution and hightorque. Using proprietary technology of the Company suchas high-pressure common-rail fuel injection systems andelectronically controllable nozzle turbochargers, the HinoMotors developed an engine capable of generating hightorque also at low revolution through highly accurate enginecontrol. Additionally, the Company further refined its EGRsystem for reducing NOx.As a characteristic of the vehicles that Hino Motors devel-oped for the New Long-Tem Emission Regulations (2005),increased fuel efficiency and engine performance have beenachieved in addition to environmental performance compliant

with regulations. As an“environmental frontrunner,”the Company will persistalso in the future in itsefforts to further enhancetruck and bus performance.

04

The Company has been promoting market launches oftrucks and buses compliant with the New Long-TemEmission Regulations (2005) implemented October 1, 2005.Compared with the previous New Short-Term EmissionRegulations(2003), the New Long-Tem Emission Regulationsreduce particulate matter (PM) by 85% and nitroxide (NOx) by40%, and are therefore called the world’s most rigorous bythe Ministry of Land, Infrastructure and Transport.Hino Motors has launched vehicles compliant with the

New Long-Tem Emission Regulations in five categories,starting with the large-sized route bus in January 2005,followed by a heavy-duty truck, medium-duty truck, large-sized touring coach, and small-sized route bus. In developingthese new vehicle types,the Company did not justonly meet regulations,but also took a proactivestance toward enhancinggas mileage.The consensus has

been that emission cuts

Special Feature 1 Hino launches vehicles compliant with the New Long-Term Emission Regulations (2005)

SpecialF

eature

In time for the New Long-Term Emission Regulation, the Company developed vehicles compliant with the newrules, including heavy-duty truck, medium-duty truck, large-sized touring coach, large-sized route bus, and small-sizedroute bus. Each vehicle features not only enhanced environmental performance but in direct relation to CO2reduction also offers fuel efficiency, combined with engine performance.

Reconciling environmentalperformance and fuel efficiency

Heavy-duty truck Medium-duty truck “Non-step”large-sized route bus

Large-sized touring coach Small-sized“non-step”route bus

05

The Customer Technical Center for training in fuel-saving andsafe driving for customers was established in June 2005 onthe premises of the Company’s Hamura plant. It is the firstcustomer-dedicated permanent facility in Japan that isdirectly operated by a vehicle manufacturer. As part of Hino’s customer support activities so far, training

sessions for fuel-saving and safe driving were previouslyoffered approximately 70 times a year using the Gozenyamaproving ground. In recent years, however, there has been asurge in inquiries for training sessions surrounding costreduction and accident prevention. In order to adequatelyaccommodate this customer requirement, the Company saw aneed for a dedicated training installation available for use at anytime, and decided to go ahead with this new facility.The center features a 1.2km

long track loop as well as atraining building with exhibitionspace and a conference room forup to fifty participants, amongother facilities. With the focus ontraining in fuel saving and safedriving, the Center offers programssuch as instruction in the particulars ofenvironmental regulations and explanations on

the latest technologies of the Company. By providingmultiple kinds of training corresponding to customers’requirements, the Company seeks to inform customers onhow best to use Hino vehicles, and will work to fulfill itssocial mission as a manufacturer to reduce environmentalpollution, help save on fuel expenses, and stamp outaccidents.As a frontrunner in environmental protective technologies, theCompany has put significant effort into developing enginepower trains that feature superior fuel efficiency andenvironmental performance, and aware of its leadership insafety matters has promoted the commercialization of

numerous safety technologies.The establishment of the Customer

Technical Center will widen the reach ofthe Company’s endeavors thus far fromdevelopment and manufacture into therealm of after-sales support service. As afrontrunner in environmental pro-tective technologies and safety, HinoMotors will through actions ofpractical significance continue to

contribute to society.

To give customers a facility for driving, learning, and testing, available at any time ― this is the concept. Interest in fuel-saving and safe driving has been on the rise more than before. In order to respond to this need, the Company newlyestablished the Customer Technical Center as a dedicated training facility for customers. The Center is also Japan’sfirst permanent training facility for customers that is directly operated by a vehicle manufacturer.

Establishment of the Customer Technical Center

Center Office Presentation room

Test driving track

Training in fuel-saving driving for customers

Track loop (1.2km)

Slope (5%)

S-curve

Demonstration space

Center office

SpecialF

eature

06

The 28th Euromilhos Dakar is more commonly known as theParis Dakar Rally. Having raced and completed this rally in forsixteen years running since first appearing at the start line,the Company this time finished with favorable overallstandings of 5th and 7th in the camion (truck) category. Therace started on December 31, 2005, from Lisbon. Throughsand dunes and bush, Hino Motors covered the entiredistance to Dakar, the rally’s finishing point on Africa’s westcoast, arriving there on January 15. Only 33 of the originally 69vehicles completed the rally, which took 16 days to completeacross a distance of 9,000km.Hino’s first vehicle(driven by Yoshimasa Sugawara)won an

overall 5th rank, and the second(driven by TeruhitoSugawara)won an overall 7th. For the Paris Dakar Rally,which is considered the world’s toughest race, finishing 16consecutive times since first appearing at the start line is arecord without parallel. Additionally, the Company

participated with Medium-duty truck based on the model for thegeneral market, and taking on huge vehicles with double orhigher emission volumes, Hino’s strenuous efforts have beenfinding acclaim also overseas. Finishing the race in sixteen consecutive years is not only avaluable record, it also tells of the reliability and ruggedness ofHino vehicles. Moreover, the fact that Hino’s medium-dutytrucks competed on a par or better with heavy-duty vehiclesspeaks of the high technological capability of Hino Motors.Notably, all supporting mechanics are dispatched for the

race from select staff of Hino Motors and its sales companies.While these employees normally perform inspection andmaintenance of customer vehicles, their same skills come tobear also on the scene of this tough race.What goes without saying for the mechanics, numerous staff ofthe Company, starting from the point of vehicle development,have in various forms been giving their support for the ParisDakar Rally―for Hino Motors a race that unites its staff in aspirit of challenge.

This year’s Paris Dakar Rally started in December 2005 from Lisbon. Having raced and finished this rally for sixteen yearsrunning, the Company this time finished with favorable overall standings of 5th and 7th in the camion (truck)category. The Paris Dakar Rally demonstrates to the world the ruggedness, reliability, and high technologycapabilities of Hino vehicles, and at the same time is a race that unites Hino staff in a spirit of challenge.

Finishing for sixteen years runningsince the first time at the start line

Symbol of Hino’s spirit of challenge: the Paris Dakar Rally

Hino completed this tough race in the 16th year running.

First vehicle of the“HINO TEAM SUGAWARA”(driven by Yoshimasa Sugawara)

Second vehicle of the“HINO TEAMSUGAWARA”(driven by Teruhito Sugawara)

SpecialF

eature

～

Overall standings　　 driver, manufacturer�

　 1 Chagin (Kamaz)�

2 Stacey (MAN)�

3 Kabirov (Kamaz)�

4 De Azevedo (Tatra)�

5 Yoshimasa Sugawara (Hino)�

6 Vismara (Mercedes)�

7 Teruhito Sugawara (Hino)�

8 Echter (MAN)�

9 Sadlauer (MAN)�

10 Reif (MAN)�

�

The Paris Dakar Rally ―Final overall top �standings for the 　　　　category�　　　 Vehicles started: 69, vehicles finished: 33��

camion

07

Topics

TOPICS

Activities in fiscal year 2005

August 22, 2005, marked the sales launch of Hino’s large-sized touring coach after its first full model change in fifteenyears and compliant with New Long-Tem EmissionRegulations (2005). This vehicle offers excellent environmental performancethanks to the adoption of the DPR clean diesel system, whilesafety features underwentenhancement in active andpassive safety aspects,including functions anddesigns devised to reducedriver fatigue and vulner-ability of passenger seats incase of vehicle rollover.Moreover, vibration was

reduced by around 30%compared with the previousmodel by using a newly

developed suspension. This bus provides mobility in acomfortable space excelling in ambience and drivability due toenhanced direct safety and turning performance as well as airconditioning performance. Moreover, with approximately 13% improved gas mileage

from the adoption of a new engine and lower running costthanks to a new-type airconditioner, the vehicle hasoutstanding cost-saving fea-tures.Thus, the touring coachoffers yet greater value toeveryone in bus operations,and in future will take thelead in bus travel.

In the period September 22-24, 2005, the JATA WorldTravel Fair 2005 took place at Tokyo Big Sight. This event is atravelfest-type fair for the travel and tourist industries in

Japan and overseas. Hino Motorsparticipated for the first time as abus manufacturer with the large-sized touring coach. Nothing shortof a full success, visitors waiting inline for a test ride were impressedwith the innovative design andeager to take a ride.

The large-sized touring coach was honored with the fiscal year2005 Good Design Award. Based on a design conceptcombining vibrant energy and a sense of hospitality, theinnovative style reflects exhilaration with the joy of travel.Going forward, Hino Motorswill persist in its undividedeffort to build motor vehiclesthat value people and theenvironment.

First exhibition at the JATA WorldTravel Fair as a bus manufacturer

The large-sized touring coach honoredwith the Good Design Award

The Company launched theSuper High-Deck and High-Deckseries. The 9-meter long High-Deck Short series was launchedon February 20, 2006.

Not alone good looks, but also high quality, ease of use, and product balance arecriteria.

Approximately 800 organizations and companies participated in 2005, comprisingtourism-related bodies, corporations, and travel agencies from around the world.

Sales launch of large-sized touring coach compliantwith New Long-Term Emission Regulations (2005)

08

Topics

Activities in fiscal year 2005

TOPICS

The award this year was conferred on the Company forbeing first in the world to mass-produce DPR and otheradvanced technologies and for playing a leading role in

contributing to the reduction ofCO2, as well as in appreciation ofresulting significant multipliereffects. Going forward, HinoMotors will continue with tech-nology innovation to support itscustomers and to reduce theburden on the environment.

Since its inception in 1991, the Hino Motors Green Fundhas on the basis of its fundamental principle of harmonybetween society and environment implemented actions such asaiding activities and research surrounding the preservation ofnature, afforestation of thenatural environment, andenvironment-related eventsusing the Hino Green Fund(HGF)Forest. This latestaward honors efforts thathave continued for manyyears to protect the naturalenvironment.

Hino Motors honored with“the 37th IchimuraPrize in Industry”for development of ultra-low emission diesel engine for large-sized commercial vehicles

Development of VSC vehicle stabilitycontrol system for heavy-duty tractorsHeavy-duty tractors pulling trailers with bulk cargo volumesare the vehicles on which logistics turn. In order to increase theirsafety, the Company developed and commercialized thevehicle stability control system VSC*2, which detects inadvance and warns the driver of trailer instability on slipperyroads, and enables highly effective vehicle control throughcoordinated actionbetween engineoutput control andtractor-trailer ABSoperation. This sys-tem was first to o-btain approval ofthe National Landand TransportationMinistry.

The Company developed the world’s first brake system forheavy-duty trucks designed to reduce rear-end collisiondamage, dubbed PCS for“Pre-Crash Safety.”This systemswas first launched as an application to the heavy-duty trucks.Thanks to a forward-irradiating milliwave radar with superior

sensitivity for object iden-tification, the PCS systemdetects stationary vehiclesor obstructing objects onthe road ahead also inadverse weatherconditions. If the on-boardcomputer discerns acollision hazard, a warningis sounded and brakingaction in two stages willlower vehicle speed, thusreducing damage potentialfrom a rear-end collision.

Hino’s activities as a frontrunner in safety

Hino Motors Green Fund honored with the Minister of the Environment Award 2005,“the EnvironmentalConservation Distinguished Service Award”

■Safety action (VSC development tailored to actual accident conditions)

Serious stand-alone �accidents of �combination vehicles�1st rank: Rollover�2nd rank: Jack knife *3��

Staves off 70% of serious �stand-alone accidents of �combination vehicles

ＶＳＣ�

Other accidents 9％�Side impact�　　6%

Rear-end �collision 15％�

Jack knife 21％�

Rollover�49％�

Total of �33 �

accidents�

・Actual conditions of serious� accidents of combination vehicles

※3

The Minister of the Environment Award 2005was conferred June 6, 2005.

*2. VSC (Vehicle Stability Control) is positioned as a key technology for reducing traffic accidents at Toyota Group.

*3.“Jack knife”refers to a situation that occurs on slippery roads when the tail end of a trailer breaks out sideways and skids forward, closing on the tractor.

“The Ichimura Prize in Industry” honors company managements and technologydevelopers for contributions or meritorious actions serving the advancement ofindustry through the development of outstanding technologies in Japan.

PCS*1 brake system for reduced rear-end collision damage

■Flow chart of rear-end collision damage reduction

*1. Co-developed with Toyota Motor

●Approaching a stationary vehicle:

The milliwave radar is constantly checking road safety ahead.

If the driver fails to notice the stationary vehicle, driver and following vehicles are alerted by a warning signal and light braking action.

If the computer discerns a high possibility of a rear-end collision, strong braking action follows.

●Approaching a slowing vehicle:

The milliwave radar is constantly checking road safety ahead.

Scanning Cruise II operates when approaching a slow-moving vehicle (if Scanning Cruise II is switched on).

On further closing in on the vehicle ahead, a warning signal and PCS braking action occur.

“Beep!”

“Beep!”

Braking action

Light braking action

Strong braking action

Business Report for Fiscal Year 2005

Business R

eport for Fiscal Y

ear 2005

0

20000

40000

60000

80000

100000

120000

0

200000

400000

600000

800000

1000000

1200000

Highlights

Financial Results in Fiscal Year 2005

Consolidated�

�Net sales: ¥1,196.9 billion�

Ordinary income: ¥42.1 billion�

Net income: ¥28.7 billion

Non-consolidated

Sales: ¥919.9 billion�

Ordinary income: 38.5 billion�

Net income: ¥21.7 billion

The Japanese economy in the term under review moved along a recovery trend, despite surging prices for crude oil and raw materials, etc., supported by rising capital expenditure on the back of improved corporate profits and helped by personal consumption.�The Company's business mainstay in domestic operations saw total demand in the markets for large and medium-size trucks increase 5.9% from a year earlier to 105,504 units amid heightened replacement demand in response to new environmental regulations such as the Automotive NOx and PM Law, as well as the New Long-Term Emission Regulations of 2005. Also in the market for small-size trucks, total demand increased 2.6% to 117,094 units.�Domestic sales of trucks and buses of the Company increased 11.2% on the year to 56,356 units. Furthermore, overseas sales reached a historical high of 45,894 units, reflecting an increase of 2.4% on the year, thanks to sales expansion in North America as well as in Near and Middle East.�As a result, combined domestic and overseas sales of trucks and buses rose 7.1% on the year to 102,250 units. In commissioned vehicle production for Toyota Motor

Corp., production of the Hilux Pick-up truck was terminated at the end of June 2005. Furthermore, with production of the FJ Cruiser started in January 2006, total production came to 188,779 units, reflecting a 23.9% decline on the year. ��Owing to the increase in unit sales centered on domestic operations, net sales for the term under review increased 5.9% on the year to ¥1,196.9 billion. Operating profit grew 5.7% on the year to ¥40.5 billion, and net income for the period increased 62.4% to ¥28.7 billion.�Going forward, in step with rising personal consumption and capital expenditure in the Japanese economy, the outlook is for a sustained moderately-paced recovery centered on private sector demand. At the same time, while keeping a watchful eye on the economic recovery, caution is required amid rising interest rates and concerns over additional increases in crude oil and raw materials prices.�The Company will continue with further advances in rationalization and in this way work to strengthen management practices and enhance financial results.��

0

10

20

30

40

50

60

70

80

●Domestic vehicle unit sales increased amid growing replacement demand in response to new�　 environmental regulations�●Vehicle sales at overseas operations reached a historical high of 45,000 units despite weak Asian� 　markets thanks to rising sales in North America and Middle East

09

Financial Highlights (Consolidated)

Financial H

ighlights (C

onsolidated

)

Truck and bus unit sales (in units)

Net sales (millions of yen)

Ordinary income and net income (millions of yen)

Net income per share (yen)

2002

60,485

87,018

102,250

16,582

20022003 20032004 20050

10,000

20,000

30,000

40,000

50,000

0

20000

40000

60000

80000

100000

120000

0

20,000

40,000

60,000

80,000

100,000

120,000

0

10

20

30

40

50

60

70

0

200000

400000

600000

800000

1000000

1200000

0

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2002

850,317

1,051,5861,130,100

1,196,972

8.38

58.86

30.35

49.51

20022003 20032004

2004

20042005

(Fiscal year)

(Fiscal year) (Fiscal year)

(Fiscal year)2005

2005

25,743

2,069

32,673

342,508

114,185

393,624

388,610

150,341

512,635

408,196

181,749

540,155

399,586

198,490

598,896

35,776

2,916

48,326

44,818

3,108

47,560

45,894

3,255

53,101

Domestic truck sales Domestic bus sales Overseas sales

Domestic Overseas Toyota-related

95,486

Ordinary income Net income

4,959

44,566

34,023

39,75142,131

17,672

28,704

0

10

20

30

40

50

60

70

80

10

Consolidated Balance Sheets

March 31, 2006 March 31, 2005 March 31, 2006 March 31, 2005

�

400,903�

39,347�

248,796�

1,214�

85,856�

11,868�

18,916�

△5,097�

414,621�

317,039�

99,665�

89,345�

15,559�

1,316�

101,609�

9,543�

16,289�

15,275�

446�

568�

81,292�

64,923�

9,293�

2,051�

13,472�

△8,448�

�

�

815,524

（Millions of Yen）� （Millions of Yen）�

(Liabilities)�

Current liabilities�

Trade notes and accounts payable�

Short-term debt�

Commercial paper�

Current portion of long-term debt�

Other accounts payable�

Accrued income taxes�

Accrued bonuses�

Warranty allowance�

Other current liabilities�

Long-term liabilities�

Long-term debt�

Deferred income taxes�

Deferred income taxes related to unrealized gain on land revaluation�

Accrued employees' retirement benefits�

Other long-term liabilities�

　 Total liabilities�

(Minority shareholder's interests)�

Minority interests in consolidated subsidiaries�

(Shareholders' equity)�

Common stock�

Additional paid-in capital�

Retained earnings�

Net unrealized gain on land revaluation�

Net unrealized gain on available-for-sale securities�

Cumulative translation adjustment�

Treasury common stock, at cost�

Total shareholders' equity�

Total liabilities, minority interests, and shareholders' equity

�

461,517�

178,042�

156,476�

52,000�

9,020�

10,875�

6,313�

3,962�

6,065�

38,760�

104,191�

50,571�

10,845�

4,684�

37,469�

619�

565,708�

�

12,980�

�

72,717�

64,307�

78,422�

6,356�

21,716�

△6,442�

△241�

236,835�

815,524

Account Account

�

432,979�

37,398�

268,111�

―�

99,829�

14,784�

17,357�

△4,502�

479,937�

341,258�

102,678�

95,772�

18,561�

5,117�

94,770�

24,358�

18,219�

17,481�

182�

555�

120,459�

109,521�

4,801�

1,790�

11,823�

△7,476�

�

�

912,916

�

477,445�

194,135�

162,292�

37,000�

5,334�

10,111�

12,770�

4,266�

7,733�

43,801�

143,300�

63,740�

20,217�

3,753�

36,188�

19,399�

620,745�

�

15,164�

�

72,717�

64,307�

105,702�

1,529�

37,006�

△3,966�

△289�

277,005�

912,916

(Assets)�

Current assets�

Cash and deposits�

Trade notes and accounts receivables�

Marketable securities�

Inventories�


Others�

Allowance for doubtful accounts�

Fixed assets�

Tangible fixed assets�

Buildings and structures�

Machinery and transportation equipment�

Tools and fixtures�

Lease assets�

Land�

Construction in progress�

Intangible fixed assets�

Software�

Consolidated adjustment account�

Other�

Investments and other assets　　�

Investment securities�

Long-term loans�


Other investments and assets�

Allowance for doubtful accounts �

�

　　 �

　　　　Total assets

Note: All amounts rounded down to full millions of yen.

Consolidated

Balan

ce Sheets

11

Consolidated Statements of Income（Millions of Yen）� （Millions of Yen）�

（Millions of Yen）�

(Ordinary income (loss))�

Operating income (loss)�

Operating income�

Net sales�

Operating expenses�

Cost of sales�

Selling, general and administrative expenses�

Operating profit�

Non-operating income (loss)�

Non-operating income�

Interest and dividend income�

Equity in earnings of affiliated companies�

Miscellaneous income�

Non-operating expenses�

Interest expense�

Miscellaneous expenses�

Ordinary income�

�

(Extraordinary income (loss))�

Extraordinary income�

Gain on sales of fixed assets�

Gain on sales of investment securities�

Other extraordinary income�

Extraordinary losses�

Loss on impairment of fixed assets�

Loss on sales and disposal of property, plant and equipment�

Loss on write-down of inventories�

Other extraordinary losses�

Net income before income taxes and minority interests�

Income taxes�

Income taxes, deferred�

Minority interests income of consolidated subsidiaries�

Net income

1,130,100�

1,091,764�

969,273�

122,490�

38,336�

�

5,479�

2,582�

783�

2,113�

4,064�

2,150�

1,913�

39,751�

�

�

1,195�

601�

―�

594�

10,603�

4,380�

3,023�

1,357�

1,841�

30,343�

11,875�

△113�

908�

17,672

1,196,972�

1,156,449�

1,020,985�

135,464�

40,522�

�

6,734�

2,829�

714�

3,189�

5,125�

3,006�

2,118�

42,131�

�

�

3,725�

2,180�

536�

1,008�

3,514�

76�

2,048�

―�

1,389�

42,341�

18,271�

△5,669�

1,035�

28,704

Note: All amounts rounded down to full millions of yen.��

Consolidated Statem

ent of Income, Shareholder's Equity, C

ash Flows

�

Consolidated Statements of Shareholder's Equity

(Additional-paid in capital)�

Additional paid in capital at beginning of year�

Additional paid in capital at end of year�

(Retained earnings)�

Retained earnings at beginning of year�

Increase in retained earnings�

Decrease in retained earnings�

Retained earnings at end of year

�64,307�64,307�

�63,337�18,775�3,691�78,422

�64,307�64,307�

�78,422�32,134�4,853�

105,702Note: All amounts rounded down to full millions of yen.

Consolidated Statements of Cash Flows

(Operating activities)�

Net income before income taxes and minority interests�

Depreciation and amortization�


Increase in notes and accounts receivable�

Increase in inventories�

Increase in notes and accounts payable�

Income taxes paid�

Others�

Sub-total　�

(Investing activities)�

Purchase of property, plant and equipment�

Purchase of intangible fixed assets�

Others�

Sub-total�

(Financing activities)�

Net increase (decrease) in short-term debt�

Net (increase) decrease in commercial paper�

Proceeds from issuance of long-term debt�

Repayments of long-term debt�

Dividends paid�

Others�

Sub-total�

Effect of exchange rate changes on cash and cash equivalents�

Net increase (decrease) in cash and cash equivalents�

Cash and cash equivalents at beginning of year�

Cash and cash equivalents at end of year

�30,343�35,535�4,380�

△10,437�△11,674�12,603�

△19,700�3,028�44,078�

�△53,262�△8,258�5,179�

△56,341��

△18,520�7,000�28,427�△9,685�△3,445�199�3,975�△61�

△8,349�47,280�38,931

�42,341�39,483�76�

△14,336�△11,185�12,153�

△11,919�△1,468�55,145�

�△63,355�△6,466�19,882�

△49,939��

2,177�△15,000�18,135�△8,958�△4,019�△41�

△7,706�460�

△2,040�38,931�36,890


�

Account Account

Account

Year ended �March 31, 2006






12

Financial Highlights (Non-consolidated)

Shipments of trucks and buses (in units)

Financial H

ighlights (N

on-consolidated

)

2002 2003 2004

Production of commissioned vehicles� (in units; excluding supplies and parts for overseas production)�

191,743

59,724

25,463

251,765

306,852

354,181

392,984427,638 478,720

344,709 289,903

5,725

5,675

2,100

32,161

49,003

2,889

36,019

47,745

3,105

43,157

87,91194,007

54,642

3,276

42,792

100,710

659,342

855,876893,819 919,945

222,676

248,012

2002

2002

20022003

2003

20032004

2004

2004

2005

2005

2005

2005

12,638 16,961

Net sales (millions of yen)

Ordinary income and net income �(millions of yen)�

16,451

8,342

32,076

9,463

30,026

10,263

21,783

Ordinary income Net income

Truck (domestic) Buses (domestic) Exports Trucks and buses Consignment Engines Components Others

62,361

44,086

45,64752,468 72,000

0

100

200

300

400

500

600

0

5

10

15

20

25

30

35

40

0

10

20

30

40

50

60

0

5000

10000

15000

20000

25000

30000

35000

40000

0

50000

100000

150000

200000

250000

0

50,000

100,000

150,000

200,000

250,000

0

20,000

40,000

60,000

80,000

100,000

120,000

0

200,000

400,000

600,000

800,000

1,000,000

50,914

57,389 56,366

188,779

0

10,000

20,000

30,000

40,000 38,541



13

Financial H

ighlights (N

on-consolidated

)

2002 2003 2004

2002

2002

20022003

2003

20032004

2004

2004

2005

2005

2005

2005

Net income per share (yen)

Dividend payout ratio (%)

Net assets per share (yen)

Equity ratio (%)

14.3216.16 17.54

37.63

406.65434.52 451.04

505.10

0

100

200

300

400

500

600

100

200

300

400

500

600

0

5

10

15

20

25

30

35

40

0

10

20

30

40

50

60

0

5000

10000

15000

20000

25000

30000

35000

40000

0

50000

100000

150000

200000

250000

0

10

20

30

40

50

60

0

34.436.4

33.6

23.9

50.748.3 47.6 48.5

0

5

10

15

20

25

30

35

40

0

10

20

30

40

(Fiscal year)

(Fiscal year)

(Fiscal year)

(Fiscal year)

14

Non-Consolidated Balance Sheets

(Assets)�

Current assets�

Cash and deposits�

Trade notes receivable�

Trade accounts receivable�

Marketable securities�

Finished goods�

Raw materials�

Work in progress�

Supplies�

Prepaid expenses�


Short-term loans�

Others�


Fixed assets�

Tangible fixed assets�

Buildings�

Structures�

Machinery and equipment�

Vehicles and transportation equipment�

Tools�

Lease assets�

Land�

Construction in progress�

Intangible fixed assets�

Software�

Rights of facility utilization�

Other fixed assets�

Investments and other assets�

Investment securities�

Shares in subsidiaries and investments�

Long-term loans�

Long-term prepaid expenses�

Other investments and assets�


Total assets

235,690�

4,857�

2,881�

147,071�

1,199�

14,478�

248�

14,920�

2,390�

67�

7,269�

31,026�

9,382�

△102�

308,318�

158,822�

46,669�

8,645�

52,861�

2,832�

10,539�

232�

31,956�

5,085�

14,709�

14,646�

2�

60�

134,786�

55,808�

60,737�

15,054�

839�

8,364�

△6,017�

544,009

（Millions of yen）� （Millions of yen）�

(Liabilities)�

Current liabilities�

Notes payable�

Trade accounts payable�

Commercial paper�

Current portion of long-term debt�

Other accounts payable �

Accrued expenses�

Accrued income taxes�

Deposits�

Warranty allowance�

Other current liabilities�

Long-term liabilities�

Long-term debt�


Accrued employees' retirement benefits�

Other long-term liabilities�

　　Total liabilities�

(Shareholders' equity)�

Common stock�

Additional paid-in capital�

Capital reserves�

Retained earnings�

Legal reserve of retained earnings�

Voluntary reserve of retained earnings�

Reserve for fixed asset reduction entry�

General reserve�

Unappropriated earnings for the year�

�

Net unrealized gain on available-for-sale securities�

Treasury common stock�

Total shareholders' equity　　�

�

�

�

�

Total liabilities and shareholders' equity

�

214,757�

6,047�

114,413�

52,000�

3,443�

7,911�

19,773�

3,451�

1,001�

6,065�

649�

70,065�

43,884�

8,585�

17,515�

80�

284,822�

�

72,717�

64,307�

64,307�

104,015�

7,103�

83,217�

4,327�

78,890�

13,694�

�

18,339�

△192�

259,186�

�

�

�

�

544,009

Account

�

251,200�

6,791�

3,134�

170,811�

―�

17,327�

273�

16,729�

2,521�

70�

9,065�

15,260�

9,361�

△147�

347,082�

165,609�

46,923�

8,619�

55,693�

3,153�

12,712�

7�

32,049�

6,448�

16,772�

16,709�

2�

60�

164,700�

77,662�

64,815�

19,097�

791�

8,380�

△6,045�

598,282

213,206�

2,501�

124,514�

37,000�

862�

7,357�

21,187�

10,363�

939�

7,733�

745�

94,893�

60,237�

16,782�

17,794�

80�

308,099�

�

72,717�

64,307�

64,307�

121,588�

7,103�

89,088�

4,198�

84,890�

25,396�

�

31,804�

△234�

290,183�

�

�

�

�

598,282Non-Consolidated

Balan

ce Sheets


March 31, 2006 March 31, 2005 Account March 31, 2006 March 31, 2005

15

Non-Consolidated Statements of Income Appropriation of Retained Earnings（Millions of yen）�

Non-C

onsolidated Statement of Incom

e, Appropriation of R

etained Earnings

(Ordinary income (loss))�

Operating income (loss)�

Operating income�

Sales�

Operating expenses�

Cost of sales�

Selling, general and administrative expenses�

Operating profit�

Non-operating income (loss)�

Non-operating income�

Interest and dividend income�

Miscellaneous income�

Non-operating expenses�

Interest expense�

Miscellaneous expenses�

Ordinary income�

�

(Extraordinary gains (loss))�

Extraordinary income�

Gain on sales of investment securities�

Gain on sales of fixed assets�

Gain on liquidation of subsidiaries�

Gain on reversal of allowance for doubtful accounts�

Other extraordinary income�

Extraordinary losses�

Loss on write-down of shares in subsidiaries�

Loss on sales and disposal of property, plant and equipment�

Loss on write-down of investment securities�


Other extraordinary losses�

Net income before income taxes�

Income taxes�

Income taxes, deferred�

Net income�

Retained earnings brought forward from the previous year�

Interim dividend�

Unappropriated retained earnings for the year

893,819�

866,107�

795,978�

70,129�

27,711�

�

3,435�

2,169�

1,266�

1,120�

278�

842�

30,026�

�

�

362�

321�

25�

12�

3�

―�

9,644�

8,491�

948�

117�

85�

―�

20,743�

8,212�

2,267�

10,263�

5,154�

1,722�

13,694

（yen）�

919,945�

885,007�

806,145�

78,861�

34,938�

�

5,106�

3,003�

2,102�

1,503�

355�

1,148�

38,541�

�

�

709�

440�

268�

―�

―�

0�

6,088�

3,327�

1,620�

910�

36�

194�

33,162�

14,215�

△2,836�

21,783�

5,910�

2,296�

25,396Note: All amounts rounded down to full millions of yen.

13,694,987,735�

128,819,689�

13,823,807,424�

�

�

1,722,642,876�

(¥3.0 per share)�

164,000,000�

27,000,000�

6,000,000,000�

5,910,164,548

25,396,685,604�

117,589,629�

25,514,275,233�

�

�

2,870,778,440�

(¥5.0 per share) �

157,000,000�

21,000,000�

16,000,000,000�

6,465,496,793

Unappropriated retained earnings for the year�

Reversal of reserve for fixed asset reduction entry�

Sub-total�

　　　　　　　　　　　　　　　　　�

�

Dividend �

�

Directors' bonus�

Auditors' bonus�

General reserve�

Retained earnings carried forward to the next year

Fiscal Year 2004Fiscal Year 2005Account AccountYear ended �March 31, 2006


To be appropriated�as follows:��

16

Corporate Profile and Stock Information

Corporate P

rofile an

d Stock In

formation

Breakdown of Shareholders by Category (as of March 31, 2006)Corporate Profile

■Number of shareholders and shareholder percentages� (Total shareholders: 14,783)

■Number of shares and shareholder percentages (Total share units: 572,706)

Individuals and �other shareholders: �14,006 (94.8%)

Securities companies: 44 (0.3%) Other domestic corporations: 371 (2.5%)

Notes:�1. The above total number of shares is net of 1,874,850 shares represented by fractional � share units.�2. The category "Individuals and other shareholders" includes 425 share units representing� treasury shares.Furthermore, the 1,874,850 shares represented by fractional share � units referenced in Item 1. above include 162 treasury shares.�3. The category "Other domestic corporations" includes 8 share units held by Japan � Securities Depository Center, Inc.

Banks and other financial institutions:�102,874 units (18.0%) Other domestic corporations: �

338,673 units (59.1%)

Securities companies:� 4,578 units (0.8%)

Individuals and other shareholders: 43,695 units (7.6%)

Foreigners: 82,886 units (14.7%)

Share Price Range on the Tokyo Stock Exchange

0

702

608

644

576

655

583

200

400

600

800

1,000

05�

Apr May June July Aug Sep Oct Nov Dec Jan Feb Mar��

669

635

718

641

763

710

802

713

795

728

763

707

808

698

795

680

768

705

Banks and other �financial institutions: 95 (0.6%) Foreigners: 267 (1.8%)

Hino Motors, Ltd.��Founded : 1910�Established : May 1, 1942�Paid-in capital : 72,717,284,641 yen�Number of employees : 9,507�Products : trucks, buses, specialty vehicles, � small-size commercial vehicles, � passenger vehicles, engines�Offices and Plant: �Head Office and Hino Plant�1-1 Hinodai 3-chome, Hino-shi, Tokyo 191-8660, Japan�Tel. +81-42-586-5111�

Hamura Plant�1-1, Midorigaoka 3-chome, Hamura-shi, Tokyo 205-8660, Japan�Tel. +81-42-579-0411�

Nitta Plant�10-1, Nitta-Hayakawa-cho, Ohta-shi, Gunma Prefecture, 370-0344, Japan�Tel. +81-276-56-5111�

Tamachi Office�11-3, Shiba 4-chome, Minato-ku, Tokyo 108-0014, Japan�Tel +81-3-3456-8811

Stock Information (as of March 31, 2006)

Number of Shares　Authorized: 1,400,000,000 shares� Outstanding: 574,580,850 shares�Number of Shareholders: 18,289 (increased by 1,271 from March 31, 2005)�Top Ten Shareholders

Toyota Motor Corporation�

The Master Trust Bank of Japan, Ltd. (Trust Account)�

Japan Trustee Services Bank, Ltd. (Trust Account)�

Japan Trustee Service Bank, Ltd.�(Holder of Retirement Benefit Trust forThe Chuo Mitsui Trust and Banking Company, Limited)�

The Tokio Marine and Fire Insurance Co., Ltd.�

State Street Bank and Trust and Banking Company. Ltd.�

Depositary Nominees Inc.�

Takenaka Corporation�

Nagasaka Industries Co., Ltd.�

Nisshinbo Industries, Inc.�

�

287,897�

24,660�

15,741�

�10,031�

6,104�

5,898�

5,709�

5,562�

4,255�

4,079

50.1�

4.3�

2.7�

�1.7�

1.1�

1.0�

1.0�

1.0�

0.7�

0.7

%

Shareholder name, number of shares held (in units of thousand shares), shareholder percentage（Yen）�

�

06

17

Directors and Auditors (as of June 28, 2006)

Directo

rs and Auditors

Chairman of the Board �　Tadaaki Jagawa�

President, Member of the Board �　Shoji Kondo�

Executive Vice Presidents, Members of the Board �　Shinichiro Sugisaki, Bunji Hagiwara, Takahiko Yamamoto�

Senior Managing Directors, Members of the Board �　Masakazu Ichikawa, Toshiki Inoue, Tsunehiko Fujii, Manabu Kasai, Seiei Okazaki, Sinji Fujimoto�

Corporate Auditors �　Akira Senuma, Akihiko Ogino, Akio Tsujii, Yoshio Ishizaka, Kosuke Ikebuchi

18

This document was printed using a waterless printing method that does not discharge harmful fluids, using inks that are free of volatile organic compounds (VOCs).

HINO Report - marketscreener.com · starting with the large-sized route bus in January 2005,...

Documents

Transcript of HINO Report - marketscreener.com · starting with the large-sized route bus in January 2005,...