ANNUAL REPORT 2010

Contents

Daihatsu Group Characteristics - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 1

Main Lineup - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 2

2010 Financial Highlights - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 3

Management Message - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 4

Special Feature: Ecological Compact Cars - - - - - - - - - - 8

Review of Operations
Procurement Innovation - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 10
Production Innovation - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 11
Operations in Japan - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 12
Operations Overseas - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 13
Consigned Production and OEM - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 14

Corporate Governance/Corporate Social Responsibility - - - - - - - - - - - - - - 15

Financial Section
Consolidated Six-Year Summary - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 17
Review of Operations - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 18
Consolidated Balance Sheets - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 23
Consolidated Statements of Income - - - - - - - - - - - - - - - - - - - - - - - - - - - 25
Consolidated Statements of Changes in Net Assets - - - - - - - - - - - - - - - - 26
Consolidated Statements of Cash Flows - - - - - - - - - - - - - - - - - - - - - - - - 27
Notes to consolidated financial statements - - - - - - - - - - - - - - - - - - - - - - 28

Investor Information - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - - 38

Disclaimer
This annual report contains forward-looking statements regarding future plans, strategies, and operating performance
forecasts and estimates for Daihatsu and its subsidiaries and affiliated companies. Statements that are not historical fact are
expectations derived from management’s assumptions and opinions based on its judgment of information available as of the
date of this report. Such statements contain risks and uncertainties that include but are not limited to economic fluctuations,
severe competition in automobile markets, market demand, exchange rates, taxation systems and changes in various other
systems. Consequently, the reader should understand that actual performance may differ from forecast results.
 Daihatsu Group Characteristics

A Specialized Compact Car Manufacturer

Moving Forward as a Member of Consolidated Net Sales
the Toyota Group (Year Ended March 31, 2010)

DAIHATSU MOTOR CO., LTD. develops, manufactures The main pillars of business from which the Company
and sells compact cars. Founded in 1907 through a generates consolidated net sales, centering on mini
consortium between industry and academia to produce vehicles, are operations in Japan; consigned production
a Japanese internal combustion engine, Daihatsu is a and OEM, which are based on collaboration with the
Japanese automaker with a history dating back more Toyota Group; and overseas sales, which focus on
than a century. Indonesia and Malaysia.
Daihatsu has held the top share of the Japanese
market for mini vehicles since the fiscal year ended Consigned
production/
March 31, 2007, a level of success it has earned by OEM
developing cars that meet market needs—vehicles that
have excellent fuel economy and are reasonably
31%
priced—and by increasing customer satisfaction
through dealer innovation. In addition to its core
market of Japan, Daihatsu extends its business to Overseas
overseas. We produce vehicles for local sale in
Indonesia and Malaysia, and export CBU vehicles to
19 % Japan 50 %
other countries.
Furthermore, in pursuing an operational tie-up
with TOYOTA MOTOR CORPORATION (Toyota), in
No. 1 Share of Mini Vehicle Sales
1998 Daihatsu became a consolidated subsidiary.
in Japan
Now as a member of the Toyota Group, we are During the fiscal year ended March 31, 2010, sales of
building cooperative business that takes new mini vehicles in Japan totaled 1,698,000 units*,
advantage of development synergies, including down 6.1% from the preceding fiscal year.
consigned production and original equipment In this market, our share of mini vehicle sales
manufacturing (OEM). topped the market for four consecutive fiscal years,
In 2008, Daihatsu also started supplying products on as we maintained a sales figure of around 600,000
an OEM basis to FUJI HEAVY INDUSTRIES LTD. (FHI), units since 2006. There are two reasons for this
which is in business tie-up agreement with Toyota. success, the first being the careful attention we pay to
customer input, incorporating this information into
our development of attractive products. Second,
Toyota
among other contributions, since 2005 we have offered
a high level of standardized service throughout Japan
and forged ahead with dealer innovation.
Hino Daihatsu

* Data from the Japan Mini Vehicles Association

Mini vehicles
The definition of “mini vehicle” is prescribed
by the Road Transport Vehicle Act
TOYOTA Group Manufacturing Companies Worldwide enforcement guidelines of the Japanese
P.T. Astra Daihatsu Motor Ministry of Land, Infrastructure, Transport
and Tourism. At present, maximum
660cc
Note: By becoming a part of manufacturing and sales network of the Toyota Group, the
Daihatsu Group’s overseas sales and manufacturing subsidiaries have played a
specifications for mini vehicles are a length 3,400mm
significant role in boosting the market share of the Toyota Group, particularly in of 3.40 m, width of 1.48 m, height of 2.00 m
Asian markets. and displacement of less than 660 cc.

DAIHATSU MOTOR CO., LTD. 1 ANNUAL REPORT 2010

 Main Lineup

Centered on Mini Vehicles

Mini vehicles Compact passenger cars

MOVE CUSTOM TANTO BOON Be-go

BOON Luminas COO

MOVE Conte TANTO EXE CUSTOM

Overseas production models

Indonesia

Mira CUSTOM ESSE

XENIA TERIOS

Gran Max (pickup)

Mira Cocoa Copen
Malaysia

Myvi VIVA
ATRAI WAGON TERIOS KID ALZA

Mini commercial vehicles Welfare vehicles

HIJET TRUCK HIJET CARGO TANTO Sloper TANTO WELCOME SEAT

Mini Vehicle Features

Parking Made Easy Short Turning Radius Small but Safe

A mini vehicle On average, mini Total Advanced Function (TAF) body, designed to
occupies a footprint vehicles have a augment safety in the event of a collision, and
of 5.03 m2, or only Footprint 65% minimum turning a Safety-Oriented Friendly Interior (SOFI). In
that of a Turning
65% of the space radius of only 4.5 m. radius addition to meeting Japanese and European
passenger car
required by a 2,000 cc Sharp turning of 4.5 m standards for collision safety, our vehicles are
passenger car. A capabilities make highly rated for their meet overall collision
mini vehicle needs mini vehicles easier safety and pedestrian
only around 5m2 of to operate on safety according to
parking area, 65% narrow roads, standards that have
of that required for a country lanes and been set by Japanese
2,000 cc passenger in mountainous government-affiliated
car, and parallel regions. organizations.
parking is easy. * Data from the Japan Mini Front-end collision
Vehicles Association Side collision

* Data from the Japan Mini
Vehicles Association

DAIHATSU MOTOR CO., LTD. 2 ANNUAL REPORT 2010

 2010 Financial Highlights
Years ended March 31

Millions of yen
2010 2009 2008

For the year:

Net sales ¥1,574,727 ¥1,631,395 ¥1,702,602
Operating income 40,747 38,191 65,201
Net income 21,162 22,074 34,940
Cash flows from operating activities 132,011 76,087 74,070
Free cash flow* 84,777 (8,524) (27,050)

Amounts per share (yen):

Net income–basic ¥49.66 ¥51.80 ¥81.92
Cash dividends 12.00 12.00 17.00

At year-end:
Total assets ¥1,134,105 ¥1,098,368 ¥1,152,498
Total net assets 396,332 365,114 385,889
Common stock 28,404 28,404 28,404
Number of employees 39,985 39,019 37,165

Ratios (%):
Return on equity 6.4 6.8 10.8
Equity ratio 30.2 29.2 28.5

* Free cash flow is the sum of cash flows from operating and investing activities.

Net sales Operating income Net income

(Billions of yen) (Billions of yen) (Billions of yen)

2,000 80 40

1,702.6 34.7 34.9

1,637.1 1,631.3 65.2 33.5
1,574.7
1,500 60 30
1,347.9 54.3
48.6
22.0 21.1
40.7
1,000 40 38.1 20

500 20 10

0 0 0
2006 2007 2008 2009 2010 (FY) 2006 2007 2008 2009 2010 (FY) 2006 2007 2008 2009 2010 (FY)

DAIHATSU MOTOR CO., LTD. 3 ANNUAL REPORT 2010

Management Message

Concentrating Management Resources

on the Production of Compact Cars that
Offer Fuel Efficiency, Affordable Pricing
and Conservation of Resources
Initiatives Under the New Organizational Structure Designed to
Speed Up Processes, Aimed at Enhancing Management

Koichi Ina Kousuke Shiramizu Katsuhiko Okumura

President Chairman Vice Chairman

DAIHATSU MOTOR CO., LTD. 4 ANNUAL REPORT 2010

 Management Message

Japanese Market Remains Opaque, Bhd., a consolidated subsidiary (fiscal year from
but Indonesian and Malaysian January 1 to December 31), reported robust sales of its
Markets Recover locally produced Viva and Myvi models, and in
During the fiscal year ended March 31, 2010, the November 2009 the company introduced the Alza, a
Japanese economy continued to feel the effects of the compact multipurpose vehicle (MPV). As a result,
global economic malaise that commenced in the Perodua succeeded in outperforming the market, with
autumn of 2008. The automobile market, however, sales slipping only 0.4%, to 167,000 vehicles.
enjoyed a 3.8% increase in unit sales, to 4,882,000 However, exports of completed vehicles suffered a
vehicles, supported by government economic stimulus major decline as a result of the global economic
packages that included a tax exemption and subsidies downturn. Consigned production and OEM were
for purchases of environmentally considerate cars. down overall, although benefiting from robust
Sales of mini vehicles slid 6.1%, to 1,698,000 vehicles, consigned production of the Toyota PASSO, which
although sales during the January–March quarter were meets Japan’s tax exemption requirements. Sales
up year on year. of engines produced on consignment for Toyota
In Japan, the Daihatsu Group launched two new increased, centered on engines for compact cars. In
mini vehicles, the Mira Cocoa and the Tanto Exe, in an September 2009, Daihatsu began to supply FHI with
effort to expand its range of models eligible for eco-car mini vehicles on an OEM basis, with full-fledged supply
tax breaks in the second half. As a result, sales in Japan commencing in April 2010.
of new mini vehicles came to 596,000 units, down 3.7%
from the preceding fiscal year but earning the Company
a market share of 35.1%—its highest to date.
Overseas, the economies of Indonesia and
Malaysia, where we have production bases, were
lackluster as a result of the worldwide economic
slowdown. However, the automobile markets in these
countries began to recover in the second half of the
fiscal year, as their economies stabilized. In particularly,
the Indonesian automobile market is shifting to a
growing phase, culminating in sales for the year of
TANTO EXE CUSTOM
560,000 units, down 2.2% year on year. P.T. Astra
Daihatsu Motor (ADM), a consolidated subsidiary,
enjoyed a 2.2% increase in sales, to 83,000 vehicles,
owing to strong sales of the Xenia, a locally produced
compact passenger car.
Automobile sales in Malaysia during calendar 2009
amounted to 537,000 vehicles, down 2.0% from the 2008
figure. Reversing this trend in the January–March 2010
quarter, however, the market saw a 22.4% increase in
sales, compared with the same quarter of the preceding
year, to 147,000 vehicles. Perodua Manufacturing Sdn. XENIA, Indonesia

DAIHATSU MOTOR CO., LTD. 5 ANNUAL REPORT 2010

 Management Message

Cost-Cutting Keywords: Developing Measures Optimized to

Simple, Slim, Compact; and Meet Circumstances in Each Area
Procurement Reform of Business
During the year, Daihatsu strove to increase its competitive In the fiscal year ending March 31, 2011, although we
strength in the market for mini vehicles and compact anticipate an economic recovery, we expect ongoing
cars throughout companywide initiatives to slash costs. difficulties in the Japanese market for mini vehicles,
From a production perspective, we reviewed our particularly reflecting an end to the eco-car subsidy in
domestic production system in light of our Simple, the second half. Accordingly, we forecast a 2.8%
Slim, Compact (SSC) concept, seeking to reform our decline in unit sales, to 1,650,000 vehicles.
plants into highly-efficient and cost-saving facilities. In Japan, we plan to invigorate sales through a
To survive in a future environment that is likely to be complete redesign of a flagship vehicle model in the
characterized by increasingly severe price competition second half.
on a global basis, Daihatsu has announced a new Overseas, we expect economic growth to continue
procurement action policy, corresponding to in the Indonesian and Malaysian markets. We will focus
procurement reforms. Accordingly, we have begun a on sales promotion activities, enhancing attractive
major overhaul of our parts procurement activities. By features of our models and pushing forward with
aggressively cultivating new suppliers and working initiatives aimed at improving the corporate structures
with existing suppliers to trim costs, by March 31, of ADM and Perodua, thereby boosting profitability.
2012, we aim to slash procurement costs on 30% of Particularly in Indonesia, we anticipate ongoing
purchased parts. economic expansion fueled by rising domestic demand,
causing resurgence in the automobile market. In
Sales Down, but Higher Operating preparation to take advantage of the major opportunity
Income and Ordinary Income these conditions present, in the fiscal year ending March
As a result of these conditions, the Daihatsu Group’s 31, 2011, we will reinforce our operations in the areas of
unit sales declined 6.7% during the year, to 1,274,000 development, production, quality control and sales.
vehicles, and net sales fell 3.5%, to ¥1,574.7 billion. With regard to production, we will extend the
Operating income, however, improved 6.7%, to ¥40.7 SSC-oriented successes in compact-car production
billion, and ordinary income expanded 11.1%, to ¥43.8 and the expertise we have accumulated at Daihatsu
billion. Net income fell 4.1%, to ¥21.1 billion. Motor Kyushu Co., Ltd. (Daihatsu Kyushu), to our plants
The Group awarded a year-end dividend of ¥7.00 in Japan, as well as in Indonesia and Malaysia. We also
per share. Added to the interim dividend of ¥5.00 per will strive to boost the overall efficiency of the Daihatsu
share, cash dividends for the full year stood at ¥12.00. Group and reconfigure our production systems. By
simultaneously implementing these improvements
and the procurement reforms that are currently
underway, we plan to enhance our ability to generate
sales and profits.

DAIHATSU MOTOR CO., LTD. 6 ANNUAL REPORT 2010

 Management Message

Making Compact Cars Ever More e:S a supremely ecological mini vehicle is its extremely
Appealing Through a More Robust small environmental footprint throughout the vehicle’s
Corporate Structure and a life, from production to end-of-life disposal. Building on
Reformed Profitability Mechanism the e:S as a foundation and integrating the anticipated
An ongoing emphasis on fuel performance as an results of procurement reforms that are currently
environmental warming countermeasure, abetted by underway, in 2011 we plan to launch a vehicle that
government policies introducing eco-car tax rebates offers 30km/ℓ fuel efficiency into the Japanese market.
and subsidies, have brought down eco-car prices more In our other pillar of business, consigned
swiftly than we had anticipated. Such changes in our production and OEM, the number of vehicles we are
operating environment have reduced the relative merits commissioned by Toyota to manufacture falls on an
of mini vehicles—fuel efficiency and affordable prices. annual basis. Upon developing compact cars that are
We have also begun to see the precursors of major more competitive and appealing, we aim to
change in the automobile industry, such as revisions to aggressively propose the production of such vehicles,
fuel efficiency standards in 2020 and a major tax thereby expanding our OEM business.
overhaul in 2012.
Key tasks in preparing ourselves to respond flexibly Bringing in the Next Decade, the
and in a timely manner to these changes in the Next Century
operating environment include the new system that will Our future role as a member of the Toyota Group is to
reinforce our overall corporate structure. We also will leverage our accumulated expertise to introduce into
speed up development of compact cars that are fuel the market compact cars that are fuel efficient,
efficient, affordable and conserve resources, and affordable and conserve resources. We will channel
expedite their launch into the market. Furthermore, we management resources into new developments in
must complete current initiatives to cut costs and Indonesia and Malaysia, which experiencing a wave of
reform procurement activities. Such efforts are essential growth. We also will work to strengthen our corporate
to success in surviving upcoming changes in the structure and complete a production system that puts
operating environment by reforming our profit structure. SSC concepts into practice.
First, we will complete the construction of a unique
Promoting Efforts to Reinforce the business model that will enhance mini vehicle profitability,
Development of Highly Efficient, paving the way for our success over the next decade
Inexpensive Compact Cars and into the next century. We will maintain this solid
Daihatsu exhibited a concept model, the e:S, at the sense of commitment as we carry out reform and strive
41st Tokyo Motor Show, held in October 2009. By to boost profitability.
incorporating technologies to enhance fuel efficiency, More than ever, we would like to express our
the e:S pushed the envelope on environmental gratitude to shareholders and other stakeholders for
performance, a conventional strength for mini vehicles. their understanding and support.
As a result, without employing a motor assist, the e:S
achieved fuel efficiency reaching 30km/ℓ using a August 2010
conventional gasoline engine. Another factor making the

Kousuke Shiramizu Katsuhiko Okumura Koichi Ina

Chairman Vice Chairman President

DAIHATSU MOTOR CO., LTD. 7 ANNUAL REPORT 2010

 14

0
2001 2002 2003 2004 2005 2006 2007 2008 (FY)
Notes:
1. Average fuel consumption is calculated by taking into account the rated fuel efficiency
and the number of units sold.
2. Figures in parentheses are CO2 equivalent values.
3. Figures for all passenger cars are from the Japan Automobile Manufacturers Association,
Inc.; figures for mini passenger cars are based on a survey of mini vehicle manufacturers.

Special Feature: LCA Index Results (Trial Calculations of CO2 Emissions)

Ecological Compact Cars Disposal Maintenance Operation

–13%
Manufacture Materials

Pursuing Total Environmental Performance on Compact –30%

Cars from the Standpoint of Lifecycle Assessment (LCA)

Raising the Environmental transmission (CVT). Such developments are evidence of the
Performance of Compact Cars Company’s Hijet,proactive efforts Hijet,to make vehicles that e:S, are
gasoline-powered
gasoline-powered hybrid
lightweight and offer good environmental
(sales discontinued) performance.
(reference)
Facing such factors as increasingly severe global environmental Daihatsu’s
Note: Mira, a mini passenger car, boasts fuel
1. Operation is based on the results of 100,000 km (10 years) of operation, running in 10-15
problems and rising crude oil prices, in recent years hybrid consumption
mode cycle of only 26.0km/ℓ* (when operating in a 10-15
2. Based on Daihatsu Research
vehicles (HVs) have grown in popularity, particularly in mode cycle), an extremely low figure for a non-hybrid
developed countries, based on the belief that low fuel gasoline-powered vehicle that operates without a motor assist.
consumption equated to being environmentally considerate. * Based on Daihatsu research, as of August 2010

Compact cars, particularly mini vehicles, led the charge in

creating vehicles that delivered environmental performance by Resources Consumed in Automobile Production
virtue of their low fuel consumption and resource savings.
(Millions of tons)
In rural areas where public transport options are limited, 15 Reduction of
compact and lightweight mini vehicles are an essential mode
approximately
of transportation. In addition to having a short turning radius 6%
and being easy to use, they consume less fuel than compact (830,000 tons)
Resources consumed
cars (B-segment and above), making them easier on the during production of Resources
environment and reducing gasoline expenditure. In this all compact cars consumed in
respect, the average fuel consumption of mini passenger cars
(B-segment and above) production of mini
10
13.75 million tons passenger cars
sold during the fiscal year ended March 31, 2009, was
19.9km/ℓ (when operating in a 10-15 mode cycle). This 12.92 million tons
0
amounts to a savings of approximately 20% compared with
Notes:
average fuel consumption of 16.9km/ℓ (when operating in a 1. Calculated on the basis of vehicles manufactured in 2006
2. Prepared by Mitsubishi Research Institute, Inc., on the basis of data from the Japan
10-15 mode cycle) for all passenger vehicles (including mini Automobile Manufacturers Association, Inc., and the Ministry of Land, Infrastructure,
passenger cars). The body, engine and other major components Transport and Tourism

of mini vehicles tend to be compact and lightweight, which

also curtails resource consumption during production.
Daihatsu has developed a three-cylinder engine that is Efforts to Reduce Environmental
lightweight and features superb combustion efficiency, as well Impact from LCA Standpoint
as a lightweight and compact continuously variable
A vehicle’s environmental impact has wider implications than
Average Fuel Consumption on Mini Passenger Cars its environmental performance in terms of fuel use and
exhaust emissions while in operation. Rather, a vehicle’s true
Mini passenger cars All passenger cars (including mini passenger cars)
environmental impact requires an understanding of the
Average fuel consumption (km/ℓ)
environmental footprint at all stages—including production,
19.93
20 19.18 19.53 distribution and sales. Daihatsu uses the LCA method to
18.55 18.77 18.76
18.08 (116g-CO2/km) evaluate the environmental impact of a vehicle throughout its
17.72
18 16.90
15.96 16.16 lifecycle, from the extraction of raw materials to production,
16 15.07 15.38 15.48 (137g-CO2/km)
14.32
14.94 distribution and use, through to disposal. We then introduce
14 initiatives to lower environmental impact at each stage.
To reduce CO2 emissions at the production stage, we
0
2001 2002 2003 2004 2005 2006 2007 2008 (FY) strive to integrate processes and shorten production lines to
Notes: make processes simple, slim and compact. We seek to
1. Average fuel consumption is calculated by taking into account the rated fuel efficiency
and the number of units sold. conserve energy through such methods as utilizing emitted
2. Figures in parentheses are CO2 equivalent values.
3. Figures for all passenger cars are from the Japan Automobile Manufacturers Association, heat and through fuel conversion.
Inc.; figures for mini passenger cars are based on a survey of mini vehicle manufacturers.

LCA Index Results (Trial Calculations of CO2 Emissions)

DAIHATSU MOTOR CO., LTD. 8 ANNUAL REPORT 2010
Disposal Maintenance Operation Manufacture Materials
 14

0
2001 2002 2003 2004 2005 2006 2007 2008 (FY)
Notes:
1. Average fuel consumption is calculated by taking into account the rated fuel efficiency
and the number of units sold.
2. Figures in parentheses are CO2 equivalent values.
3. Figures for all passenger cars are from the Japan Automobile Manufacturers Association,
Special Feature: Ecological Compact Cars
Inc.; figures for mini passenger cars are based on a survey of mini vehicle manufacturers.

At the distribution stage, we encourage modal shifts LCA Index Results (Trial Calculations of CO2 Emissions)
(shifting from overland to sea transportation) when
transporting completed vehicles and parts. At the sales stage, Disposal Maintenance Operation Manufacture Materials

we encourage dealers to conserve energy, leveraging our

Group’s strength in energy conservation. –13%

Lifecycle Assessment (LCA) –30%

For products, the environmental impact (such as CO2 emissions)
is not only a function of product use. Rather, it involves the entire
product lifecycle, from raw material extraction to manufacturing,
distribution, use and through to disposal. LCA is a method of
evaluating overall environmental impact by considering each of
these stages. Adopting an LCA viewpoint allows a product’s total
environmental impact to be considered from the planning and
design stages.

Hijet, Hijet, e:S,

gasoline-powered hybrid gasoline-powered

Developing a Next-Generation (sales discontinued) (reference)

Note:
Compact Eco-Car 1. Operation is based on the results of 100,000 km (10 years) of operation, running in 10-15
mode cycle
2. Based on Daihatsu Research

Based on LCA concepts, Daihatsu has worked to make the

most of conventional technologies to create compact cars
that deliver high environmental performance. Now, we aim to Pushing the Envelope of
leverage this experience to create the next generation of Environmental
Resources Performance
Consumed in Automobile Production
compact cars. One example of such efforts is the e:S, a concept
(Millions of tons)
car that we exhibited at the Tokyo Motor Show in 2009. As a next-generation powertrain technology, we have
15 Reduction of
The e:S employs a three-cylinder engine, such as is developed a two-cylinder direct-injection turbo engine that
approximately
common on current-day mini vehicles, but this is a new-model, features ultra-low fuel consumption and generates 6% full torque
highly efficient engine. The model also utilizes a new idling- at low speed. Drawing from electric fuel cell (830,000 vehicles, which
tons)
stop mechanism and an ultra-lightweight body featuring superb Resources to
are considered consumed
be highly environmentally considerate, we
during production of Resources
aerodynamics. Through this combination of technologies, the developed a Precious
all compact carsMetal-free consumed
Liquid-feed in Fuel Cell
(B-segment and above) production of mini
vehicle achieves low fuel consumption of only 30km/ℓ (when (PMfLFC). This cell provides extremely high fuel cell
10
13.75 million tons passenger cars
operating in a 10-15 mode cycle). performance, but it requires no platinum or other costly
Without relying on such techniques as motor assist, the precious metals. 12.92 million tons
0
e:S makes the most of the such mini vehicle characteristics as Going forward as a car company, Daihatsu plans to
Notes:
being compact, lightweight and highly efficient. In addition to continue
1. contributing
Calculated on to the
the basis of vehicles development
manufactured in 2006 of mini vehicles and
during vehicle operation, the consumption of resources during 2. Prepared
other by Mitsubishi
compact Research
cars that Institute,
deliver Inc., on the basis high
extremely of datalevels
from theof
Japan
Automobile Manufacturers Association, Inc., and the Ministry of Land, Infrastructure,
production is also reduced, thereby minimizing lifecycle environmental performance at reasonable prices.
Transport and Tourism

energy consumption and CO2 emissions. In a comparison of

our gasoline-powered and hybrid Hijet models using an LCA Roadmap of Core Daihatsu Mini Vehicle Powertrain Technologies
index, the HV was calculated to have a 13% lower environmental

3
Environmental performance

impact. However, the model showing the largest reduction

was the much more lightweight e:S. Despite being a gasoline- rd
stage Precious Metal-free
powered vehicle, the environmental impact of the e:S was Liquid-feed Fuel Cell
(PMfLFC)
30% lower than the HV. Next generation
eco-engine for
mini vehicle

For e:S
Second-generation
KF engine plus
2stagend
“eco IDLE” function

1 st
stage
EV
Time

The e:S, a concept model at the Tokyo Motor Show

DAIHATSU MOTOR CO., LTD. 9 ANNUAL REPORT 2010

 Procurement Innovation

Cutting Costs in Partnership with Suppliers to Hone Our

Global Competitive Edge
By partnering with suppliers to cut costs and scouting out new suppliers, we aim to trim costs on 30%
of purchased parts by the end of fiscal 2012.

Achieving Mutually Sustainable Aiming to Trim Costs on 30% of Purchased

Growth Parts by the End of Fiscal 2012
To prevail in the global price competition, Daihatsu drastically As part of our efforts to ensure completely open and fair
overhauled its procurement activities for purchased parts, which business practices, we are recruiting new suppliers from all
constitute approximately 70% of vehicle production costs, and across the globe, and continue to receive applications on our
announced a new procurement action policy in September 2009. website. The number of suppliers Daihatsu has commenced
Some 430 companies, including new suppliers, participated in a transaction with based on new applications is also increasing
public information session that was open to the media. steadily. We will continue procuring an extensive array of
Our procurement reforms entail joining forces with suspension-function parts and resin parts from manufacturers
suppliers in cost-cutting measures that will lead to mutually in Japan and overseas that we have yet to do business with.
sustainable growth. Daihatsu is promoting the following three One aspect of our comprehensive cost-cutting
policies to procure optimally low-priced, quality parts and implemented in collaboration with suppliers is maintaining
materials for mini vehicles and compact cars. an efficient delivery system suited to our dual production hub
(1) Daihatsu will construct new, low-cost procurement infrastructure structure in Kansai and Kyushu. Coordination between
based on open and fair practices without adhering excessively to
past procedures.
suppliers and our purchasing and R&D divisions to increase
(2) Thorough cost cutting will be implemented in collaboration with the use of common parts (thus reducing the number of
suppliers to achieve mutual growth and build relationships based different parts) is also yielding steady benefits, particularly
on trust.
(3) Senior management will carry out the principle of genchi-genbutsu in cost reduction. Through such initiatives, procurement
(going to the actual place where a problem has occurred and professionals are being soundly cultivated; they maintain
clarifying the problem with one’s own eyes) and establish a
professional procurement organization with a thorough understanding extensive personal familiarity with the genchi-genbutsu
of value founded in products, manufacturing, and costs. principle (going to the actual place where a problem has
occurred and clarifying the problem with one’s own eyes)
and a thorough understanding of products, manufacturing
Cost Structure and Approach to Cost-Cutting
and costs.
Reducing the costs of internal manufacturing and procurement In its role as the compact car manufacturer in the Toyota
through Design Capability Enhancement*
Group, Daihatsu is striving to develop a business model
Costs incurred through to internal vehicle manufacturing
Internal manufacturing
costs
Lower cost through promotion of the SSC appropriate for the mini vehicle business in short order, and to
principle in manufacturing
Procurement expenses for parts and transportation
attain globally viable business deployment through production
costs and others from suppliers of vehicles that are fuel efficient, priced affordably and
Procurement costs Procurement Reform
resource-conserving.
Dramatic changes to the structure of
procurement tasks and their procedures!

* Design Capability Enhancement: Optimizing design, including materials and their amounts, to ensure
necessary and sufficient product function, performance and quality.
The diagram shown above is for illustration purposes, and the bar graph does not reflect the actual ratios.

Daihatsu’s Ideal Procurement Reforms

Provide better products A group of procurement Create quality cars at

to the customer more professionals who know value optimal low prices for
inexpensively mini vehicles together
Comprehensively trim costs in
Provide information from the partnership with suppliers Eliminate each other’s wasteful
perspective of specialized fields practices by learning about materials,
Proposals to reduce costs product methods and distribution
Administration
Division Purchasing
Production Cut costs by mutually Division Build trust relationships for
Supplier
Division enhanced communication Decide suppliers and mutual growth
R&D place orders
Division
Propose cost-cutting measures from the Create products and new
perspective of procurement transportation systems and others
Provide inexpensive, quality products

Learn about products, Establish a

production and costs new supply base

DAIHATSU MOTOR CO., LTD. 10 ANNUAL REPORT 2010

 Production Innovation

Pursuing High-efficiency, Low-cost, Environmentally

Friendly Production under the SSC Concept
Daihatsu’s principles of Simple, Slim and Compact (SSC) are pursuing to efficiency throughout our
production in Japan. We aim to operate high efficient plants specializing in mini vehicles to realize
low-cost, environmentally friendly production.

Increasing Production Capacity in Saving Space and Reducing

Kyushu Plant to Reduce Losses due Environmental Impact by Reforming
to Long-Distance Transportation Production Methods
In November 2007, operations began at Japan’s first plant Daihatsu is introducing various of new production methods at
specializing in producing mini vehicles, Daihatsu Kyushu’s Oita these plants to achieve top level productivity.
(Nakatsu) No. 2 Plant. By simplifying equipment and For example, at the Oita (Nakatsu) No. 2 Plant we have
integrating processes based on the SSC concept, we adopted a “jigless”* body welding line and vehicle conveyance
achieved the same annual production capacity as the No. 1 via a simple conveyor, thereby saving vast amounts of space
Plant, at 230,000 vehicles per year, but with only half the and efficient production process. The jigless method,
building floor space and about 60% of the capital investment. wherein robots are used for positioning and welding without
In August 2008, we completed an engine plant in the city jigs and hence only require a change in the program used
of Kurume, Fukuoka Prefecture, that specializes in engines for when a different type of vehicle goes into production, has
mini vehicles. Through operation of the Kurume Plant with its obviated the need to replace large, specialized jigs as had
yearly production capacity of approximately 216,000 previously been required. Moreover, in the painting process
engines, we have shortened the time required for delivery of we now arrange the vehicle bodies perpendicular to the
engines to the Oita (Nakatsu) Plant from three days (when direction of conveyance, which has shortened the required
transported by ship from our Shiga Plant) to only 150 minutes. conveyor length. We even had success incorporating the SSC
This change also reduced shipping costs by approximately principle at the Kurume Plant, where equipment was
75%. Furthermore, in October 2009 production of CVTs was simplified, other capital investment in production
commenced at the Kyushu Plant of our consolidated processes were lightened and the area of the building floor
subsidiary Akashi-Kikai Industry Co., Ltd. area was reduced.
In this manner, by increasing capacity of major Besides Japan, the production structure improvements
components of mini vehicles in Kyushu, we are building an incorporating the SSC concept have also been implemented
efficient domestic production structure that reduces in our plants in Indonesia and Malaysia. The money saved in
shipping costs and time and energy usage. costs cut by this adoption of SSC goes to fund product and
technology development, and contributes to more attractive
products with enhanced environmental functions and safety
technologies. Daihatsu considers the compact cars produced
at plants where SSC has been introduced, with their excellent
energy savings and reduction in CO2 emissions, as “true
eco-cars” and intends to continue providing these vehicles to
many customers in the future.
* J ig: A device that secures work objects and controls cutting tools and other devices.
Jigs are also used in machining and welding.

A Simple, Slim and Compact Production Structure

Concentrated production base locations Comparison of Oita No. 1 and No. 2 Plants
reduce transportation energy costs.
No. 2 Plant No. 1 Plant Effect (Merit)
Approximately 75% reduction Three days by Shiga
Production capacity 230,000 units 230,000 units None
ship from Shiga
Capital investment ¥23.5 billion ¥40.0 billion Approx. 40%
Reduced to Head Office, Building floor space 50,000 m2 110,000 m2 Approx. 50%
Head (Ikeda) Plant
150 Note: Production capacity is based on two shifts with no overtime, annual
production capacity; figures are estimations.
minutes Kyoto Plant
Profile of Engine Plants Comparison of KF Engine Lines at the
Oita Shiga (Ryuo) Plant Kurume Plant and the Shiga No. 1 Plant
Kurume Shiga
Effect (Merit)
Production
Kurume capacity 216,000 1,300,000
Capital investment Approx. 40%
Oita (Nakatsu) (annual) units units Overall
No. 1 and No. 2 Plants Capital Volume Approx. 60%
investment ¥10.0 billion —
Building Machining Line length Approx. 50%
2 317,000 m2
Kurume Engine Plant floor space 13,000 m &
Note: Production capacity is based on two shifts Assembly No. of processes Approx. 20%
with no overtime, annual production
capacity; figures are estimations.

DAIHATSU MOTOR CO., LTD. 11 ANNUAL REPORT 2010

 Operations in Japan

Remaking Dealer Outlets and Reforming Our Sales Approach

To create an environment more attractive to women, who represent approximately 70% of Daihatsu
drivers, we are imbuing our dealer outlets with a more casual and comfortable atmosphere, and
enriching the hospitality aspect of our customer service to attain even greater customer satisfaction.

Rolling Out a New Type of Pursuing More Sensitive

Customer-Focused Dealer Outlet Customer satisfaction
For four consecutive years since fiscal 2006, Daihatsu has In addition to the reforms in our dealer outlets, we have
maintained the top share position in Japan’s mini vehicle advanced “the Café Project” since 2005, which entails a
market, which accounts for approximately 35% of the revamped selling style aimed at further enhancing customer
country’s new car sales. The Company also placed two satisfaction.
models in the top ten of Japan’s new vehicle sales ranking for Employees dress in a friendly and casual manner and
fiscal 2010. pay close attention to customer needs with a recognition of
One initiative supporting these domestic sales is the the importance of hospitality. Interiors are coordinated in
sales innovation activities Daihatsu has undertaken since seasonal themes, and we offer customers beverages and
2005. Approximately 70% of Daihatsu drivers are women. To special sweets made by a popular patisserie. In the area of
create dealer outlet environments that attract female maintenance services, we require staff mechanics to
customers, we have instituted Daihatsu New Outlet carefully explain procedures to customers before, during
Standards at all Daihatsu dealer outlets in Japan, changing and after maintenance.
our sales style from making home calls to attracting In May 2009, “the Café Project” entered a new stage in
customers to dealer outlets. For example, to make dealer its development. Classifying the project as an activity to raise
outlets more distinguishable we unified their exterior colors customer satisfaction by creating dealer outlets that are
with a bright and friendly red, white and beige color scheme. becoming of Daihatsu, the entire staff is actively working to
By coordinating their interiors with wood tones, we make cultivate customer service and outlets that fit Daihatsu’s image
outlets more comfortable to enable customers to relax in a (familiar, caring and sensitive), as distributors set their
casual atmosphere as they view vehicles. As of April 2010, respective goals and identify challenges.
453 of our approximately 660 dealer outlets employed the According to an internal survey, the level of customer
Daihatsu New Outlet Standards. satisfaction* had risen from 73.0 points to 81.0 points as of
2009 in the four years since “the Café Project” started. The
project has stimulated active discussion about ideas to
Domestic New Vehicle Sales Ranking by Manufacturer (Fiscal 2010)
improve customer satisfaction, as well as information sharing
Brand Model Sales (Units)
so as to learn from the examples of other outlets. It has
1 Toyota PRIUS 277,485
also significantly increased the enthusiasm of our employees.
2 Suzuki WAGON R 193,430 * Internal customer satisfaction survey data
3 Honda FIT 173,154
4 Daihatsu MOVE 162,423
5 Daihatsu TANTO 161,576
6 Toyota Vitz 125,253
7 Toyota PASSO 101,360
8 Suzuki ALTO 99,245
9 Toyota COROLLA 96,765
10 Honda INSIGHT 96,616
Note: Data from the Japan Mini Vehicles Association/Japan Automobile Dealers Association
Two Daihatsu vehicles ranked in the top 10.

DAIHATSU MOTOR CO., LTD. 12 ANNUAL REPORT 2010

 Operations Overseas

Augmenting Our Production and Sales Structure to

Expand Business in Growth Markets
Daihatsu has been enhancing its product advantage, production and sales structure in the growth
markets of Indonesia and Malaysia as it creates the foundation of a compact car business praised
globally.

Indonesia Malaysia
Strengthening Functions as a Solidly Maintaining the Top Share
Production Center to Prepare for of National Car Sales for the
the Market’s Growth Stage Fourth Consecutive Year
The expanding Indonesian Among the countries in Southeast
market plays a pivotal role in Asia, Malaysia is one of the most
the Company’s global industrialized and advanced, with
strategy. Production is relatively high income levels and an
undertaken by P.T. Astra already-high vehicle ownership ratio
XENIA Daihatsu Motor (ADM), a joint ALZA
among citizens. Furthermore, to
venture with 61.75% capital cultivate the automotive industry
participation by Daihatsu. Including the Toyota brand of Malaysia has initiated a policy of encouraging the
consignment and OEM vehicles it supplies, ADM accounted production of vehicles considered “National Cars,”* which
for more than 40% of vehicles produced in Indonesia in 2009 constitute the largest share vehicles.
(January through December). Share of vehicles sold in In light of these market characteristics, Daihatsu
fiscal 2010 edged up 0.6 percentage point to 14.8%, produces and sells National Cars via a joint venture,
maintaining the No. 2 share position from the preceding Perodua Manufacturing Sdn. Bhd., thereby contributing to the
fiscal year. development of the Malaysian automobile industry. These
Although Indonesia’s automotive market is currently models include the Viva (based on the Mira) and the Myvi
still in the development stages, sales are growing primarily (based on the Boon). With the product assessed as being fuel
for passenger compact cars, such as the Xenia (seats 7-8 efficient and safe and meeting high quality standards, Perodua
people), which are suited to Indonesia where families tend has a considerable advantage in this market place and has
to be large. In the fiscal year, ADM achieved robust achieved a good presence as National car.
earnings, owing to market growth from the economic In November 2009, we introduced the Alza MPV (based
recovery, improvements to ADM’s productivity and a on the Boon Luminas), successfully attracting a customer
stronger revenue structure. The company will continue base not covered by the Viva or the Myvi. As a result, sales
increasing sales and profitability. share in calendar 2009 inched up 0.6 percentage point year
Moreover, ADM has exported the Terios to the Middle on year, to 31.1%, thereby cementing a fourth straight year in
East, Africa, Asia and Central and South America since the top share position.
2007. In 2008, ADM started to export the Gran Max to We will continue leveraging our extensive product line to
Japan, to be sold as Toyota’s Townace/Liteace. This proves bolster sales promotion activities, and work to reinforce the
that ADM-produced vehicles meet global quality standards. company’s quality through further increases in productivity
Moving forward, Daihatsu will continue to build the and cost-cutting.
foundation for a compact car business praised globally, *N
 ational Car (policy plan): A production plan for popularly priced cars advocated and
contributed to primarily by the national government, both directly and indirectly. In
taking advantage of its expertise cultivated in Japan Malaysia the concept was propounded by former Prime Minister Mahathir bin
Mohamad in the 1980s.
regarding fuel efficiency, affordable price and
conservation of resources.

Unit Automobile Sales Ranking in Indonesia (Fiscal 2010)

Brand Sales (units) Share (%)
1 Toyota 219,768 39.3
2 Daihatsu 83,129 14.8
3 Company A 72,338 12.9
4 Company B 50,642 9.0
5 Company C 45,946 8.2
Note: Data from the Association of Indonesia Automotive Industries (Gaikindo), on a
wholesale basis Myvi

DAIHATSU MOTOR CO., LTD. 13 ANNUAL REPORT 2010

 Consigned Production and OEM
We cooperate with Toyota in a variety of ways, emphasizing our strength in the compact car
business. In 2008, we developed cooperative arrangements in development and manufacturing
together with Toyota and Fuji Heavy Industries, with which we have a business alliance. Going
forward, we endeavor to expand our OEM through competitive vehicle development pursuing fuel
efficiency, affordable price and conservation of resources.

Main Aspects of Cooperation

Consigned
Production at Daihatsu’s plants of another company’s brand of vehicle or engine developed by that company.
Production
Manufacture and supply vehicles of that Daihatsu developed or produced but will be sold under another
OEM
company’s brand.
Development of vehicles jointly with another company. (Vehicles under another company’s brand would be
Joint Development
classified as consigned production.)

Production in Japan
Arrangement Brand Models

Consigned production Toyota Probox/SUCCEED, Porte

Joint development/consigned production Toyota PASSO, bB

Toyota Rush, PASSO SETTE

OEM
Subaru (Fuji Heavy Industries) DEX, Dias Wagon, PLEO, LUCRA

Production Overseas
Production
Arrangement Brand Production Company Model
Country

Joint development/ Indonesia Toyota Astra Daihatsu Motor AVANZA

consigned production Malaysia Toyota Perodua AVANZA

OEM Indonesia Toyota Astra Daihatsu Motor Townace/Liteace (for the Japanese market), Rush

Consigned Engine Production

Engine Type Emissions Brand Models Equipped
Toyota Vitz, BELTA, PASSO, iQ
KR 1000cc gasoline
Daihatsu BOON

Toyota PASSO, iQ, COROLLA

NR 1300cc gasoline
Daihatsu BOON

Toyota Vitz, BELTA, Ractis, bB, Rush

SZ 1300, 1500cc gasoline
Daihatsu COO, Be-go

TR 2000, 2700cc gasoline Toyota HIACE

KD/KZ 2500, 3000cc diesel Toyota LAND CRUISER, PRADO

Toyota DYNA
B 3700, 4100cc diesel
Daihatsu DELTA

PASSO/Toyota LUCRA/Subaru AVANZA/Toyota (Indonesia)

DAIHATSU MOTOR CO., LTD. 14 ANNUAL REPORT 2010

 Corporate Governance/Corporate Social Responsibility
Daihatsu has established the Daihatsu Group Philosophy and the Daihatsu Group’s Basic CSR
Principles in order to pursue its mission of “making compact cars loved around the world” while
achieving globalization of the Group. Daihatsu also has distributed Daihatsu Group Action Guidelines.
In accordance with our philosophy, principles, and guidelines, we are striving to enhance our corporate
governance in a manner that satisfies all stakeholders, including our customers.

Overview of Daihatsu’s Corporate outside auditors, one is an independent corporate auditor filed
Governance System and Reasons at the Tokyo Stock Exchange, and two auditors are former
members of our parent company, Toyota.
for Adopting This System
Daihatsu has adopted a corporate auditor system, with audits Current Status of Internal
by outside auditors (including independent auditors) and by
Control System and Risk
statutory corporate auditors. This arrangement ensures that
the management supervisory function is sufficient.
Management System
At the end of the fiscal year (as of March 31, 2010), Daihatsu’s internal control system reflects its adoption of a
Daihatsu had 12 directors, and the Board of Directors held corporate auditor system as stipulated in the Companies Act
17 meetings in fiscal 2010 to make decisions on operations of Japan, which involves the supervision and decision-making
and to supervise the directors in the execution of their duties. on business execution by the Board of Directors as well as
In addition, other important management issues were auditing by the corporate auditors and the Audit Committee.
determined at the vice presidents’ meetings. On June 29, In addition, Daihatsu carries out auditing through the Internal
2006, the Company introduced the executive officer system Auditing Department on a regular basis to examine and
and the functional business group system. The Company’s evaluate activities and systems according to the Company’s
Articles of Incorporation stipulate that the number of Board management policies from a fair and just position.
Members shall be 15 or less, and they totaled nine as of June The Company is also audited by independent auditors, and its
29, 2010. corporate auditors exchange opinions with them as needed.
As of March 31, 2010, the Company had four corporate With the aim of improving the corporate value and assuring the
auditors, two of whom are outside auditors, and the audit reliability of financial reports and compliance with laws and
committee held 16 meetings during fiscal 2010. Based on the regulations, we established the Internal Control Committee,
auditing policy and plan, the corporate auditors audit the chaired by the executive vice president and with division heads
directors’ execution of duties by attending the Board of as committee members. Our Internal Control Committee
Directors’ meetings and other important meetings, examining adjusts internal control systems based on the Financial
important documents, receiving information from the internal Instruments and Exchange Law and the U.S. Sarbanes-Oxley
auditing department, visiting business locations, and Act and seeks to enhance the companywide internal control
examining subsidiaries. system by managing personal and other classified information.
As of June 29, 2010, the Company has four corporate For operations that require control, risk management,
auditors, of whom three are outside auditors. Of the three and compliance in each division, in addition to the control

Internal Control Structure

Monitor Report Various committees

Audit Committee meeting Board of Directors meeting
Export, Environmental, etc.
Report Policy Report 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 Instruct Report

Each division of the Company Control center

(department responsible for
control of each affiliated company)

Employees’ Voice Hearing

Report
Helpline System Instruct Report

Suggest Hearing
Affiliated companies
Audit Division
Cooperate Investigate
Corporate Auditors audit

DAIHATSU MOTOR CO., LTD. 15 ANNUAL REPORT 2010

 Corporate Governance/Corporate Social Responsibility

activities carried out regularly, we ensure internal audit activities from a broad perspective, offer advice to directors and exchange
thorough control by means of supervision by the Export opinions with other corporate auditors. Prior to meetings of
Management Committee, the Daihatsu Environmental the Board of Directors, these outside auditors receive
Committee, the Joint Labor-Management Conference, briefings from related internal departments on agenda items.
and the Functional Labor-Management Coordinating If outside auditors do not attend these meetings, they are
Committee. For the Company’s subsidiaries and other Group provided with materials and explanations the content of the
companies, we ensure the enforcement of internal control meetings, either beforehand or promptly afterward.
activities through the affiliated-company management system.
Daihatsu has published the Employee Action Guidelines
summarizing appropriate conduct as a corporation as well as
Accounting Audits
the basic attitude and conduct policies of employees During the fiscal year under review, the Company’s
concerning their relationship with society, business partners, accounting audits were executed by certified public
and external organizations. On the occasion of establishing the accountants Shigeru Takahama and Shinya Deguchi.
new Group Philosophy, in March 2007 we issued the Daihatsu Assisting audit operations were 12 other certified public
Group Action Guidelines in order to thoroughly implement accountants and 16 others.
compliance throughout the Group. In addition, in 2002 we
established the Employees’ Voice Helpline system, whereby
Environmental Accounting
an employee can offer pertinent information in anonymity, in
the event that a threat of conduct contrary to the law, social
(Non-Consolidated)
ethics, human rights, or internal company regulations might In accordance with the Ministry of the Environment’s
take place in the workplace or in the case when such conduct Environmental Accounting Guidelines, Daihatsu maintains
has already occurred. The system enables the Company to an awareness of environmental-related investments and
take measures to prevent such occurrences or to take quick maintenance costs. In fiscal 2009, environmental conservation
actions in the event of an emergency. costs came to ¥13.6 billion, or 1.2% of nonconsolidated
net sales.
Personal Relationships with (Millions of yen)
Outside Auditors Environmental Conservation Cost FY2010 FY2009
Category Investment Cost Investment Cost
To fulfill the role of viewing the company fairly from a societal 1. Business Area Cost 283 2,773 863 2,921
standpoint, absent any special-interest relationships with the (1) Pollution Prevention Cost 133 1,476 489 1,509
Company, and to judge the execution of management tasks (2) Global Environmental Conservation Cost 116 381 297 453
objectively, as of March 31, 2010, Daihatsu had appointed (3) Resource Recycling Cost 34 916 77 959
two outside auditors. Their role is to ensure that management 2. Upstream/Downstream Cost 0 308 0 240
functions in an objective and impartial manner. 3. Environmental Conservation Cost, Administrative 12 832 76 759
Outside auditors attend Board of Directors meetings and, 4. Environmental Conservation Cost, R&D 950 8,462 697 9,178
5. Environmental Conservation Cost, Social Activity 0 0 0 0
6. Environmental Remediation Cost 0 3 0 3
Information Transmission Route During Crises
Subtotal 1,245 12,378 1,636 13,101
Total 13,623 14,737
President

Corporate Vice President

Auditors (Meeting)

Legal and Information

Crisis Countermeasures Division Gathering Group
Included in FTSE4Good for
Crisis Countermeasures Division Head
Government & Industrial third consecutive year
Affairs Group
Department in crisis
Group Heads or Executive Officers A Socially Responsible Investment (SRI) index is a share
(Factory Heads, Department Heads) index comprised of corporations that meet globally
Victim Support Group
recognised standards in their corporate social responsibility
Supervisory Public Relations (CSR) activities. The FTSE4Good Global Index is a global
Group Group Consumer Support Group SRI index, managed by the FTSE Group (a company
co-owned by the Financial Times and the London Stock
Exchange) and has included Daihatsu in its index for three
Mass Media Support Group years since 2008.
Daihatsu engages proactively in environmental
In 2009, the scope of Countermeasures Division activities was approved by the Board
of Directors to include the execution of appropriate crisis management in emergency conservation and social contribution activities. Reports on
situations, such as fires, accidents or scandals. The resolution defines the role of each these initiatives are available on our website.
department in a crisis situation, allowing an integrated response on a working level as
well as on a consolidated basis.

DAIHATSU MOTOR CO., LTD. 16 ANNUAL REPORT 2010

 Consolidated Six-Year Summary
Years ended March 31

Millions of yen
2010 2009 2008 2007 2006 2005

For the year:

Net sales ¥1,574,727 ¥1,631,395 ¥1,702,602 ¥1,637,124 ¥1,347,972 ¥1,176,245
Operating income 40,747 38,191 65,201 54,373 48,638 40,116
Net income 21,162 22,074 34,940 34,730 33,523 25,871
Capital investment 36,745* 1
76,700* 1
111,749* 1
77,590* 1
114,039* 1
101,795
Depreciation 72,945*1 83,654*1 66,487*1 65,143*1 60,773 51,486
R&D expenses 43,734
44,209 44,213 46,724 47,803 40,354

Amounts per share (yen):

Net income—Basic ¥49.66 ¥51.80 ¥81.92 ¥81.38 ¥78,14 ¥60.26
Cash dividends 12.00
12.00 17.00 15.00* 3
12.00 9.00

At year-end:
Total assets ¥1,134,105 ¥1,098,368 ¥1,152,498 ¥1,124,762 ¥1,027,228 ¥884,937
Total net assets 396,332* 2
365,114* 2
385,889* 2
369,599* 2
303,306 240,545
Common stock 28,404 28,404 28,404 28,404 28,404 28,404
Number of employees 39,985 39,019 37,165 36,043 33,011 29,562

Ratios (%):
Return on equity 6.4 6.8 10.8 11.1 12.3 11.2
Equity ratio 30.2 29.2 28.5 28.5 29.5 27.2

Notes:
*1. Excluding assets for lease.
*2. T
 he Company adopted the “Accounting Standard for Presentation of Net Assets in the Balance Sheets” (Accounting Standards Board of Japan (ASBJ) Statement No. 5, issued on
December 9, 2005) and the “Implementation Guidance for Accounting Standard for Presentation of Net Assets in the Balance Sheets” (ASBJ Guidance No. 8, issued on December 9,
2005) from the fiscal year ended March 31, 2007.
*3. Including commemorative dividends of ¥2.

Consolidated Unit Sales Units

2010 2009 2008 2007 2006 2005

Daihatsu Vehicles
Domestic
Mini Vehicles* 561,661 580,140 561,628 567,301 550,738 532,695
Compact Cars 6,179 6,912 9,025 18,939 13,039 17,998
Subtotal 567,840 587,052 570,653 586,240 563,777 550,693
Overseas 300,621 357,829 374,286 342,423 286,708 267,823
Total 868,461 944,881 944,939 928,663 850,485 818,516
Consigned / OEM
Consigned Domestic 220,078 223,111 245,368 262,512 187,372 177,635
Overseas 138,684 131,816 109,549 97,090 95,452 63,865
OEM Vehicles 46,967 65,621 36,187 27,801 9,184 2,474
Total 405,729 420,548 391,104 387,403 292,008 243,974
Total 1,274,190 1,365,429 1,336,043 1,316,066 1,142,493 1,062,490
Parts for Overseas
Production (sets) 25,040 18,710 18,130 5,890 8,220 9,400
Consigned Engines 552,911 470,183 433,599 385,026 368,616 256,631
Note: Vehicles that one 3.4m or less in length, 1.48m or less in breadth, 2.0m or less in height and engine displacement of less than 660cc are categorized as mini vehicles.

DAIHATSU MOTOR CO., LTD. 17 ANNUAL REPORT 2010

 Review of Operations

Scope of Consolidation and Application of fiscal year ended March 31, 2007. We strove to enhance our
Equity Method portfolio of compact cars, as well, launching a completely
During the fiscal year ended March 31, 2010, Daihatsu Motor redesigned Boon, a compact passenger car, in February 2010.
Co., Ltd., had a total of 60 consolidated subsidiaries and Overseas, our consolidated subsidiary in Indonesia, P.T.
accounted for 22 companies by the equity method. Astra Daihatsu Motor (ADM) posted strong sales of the locally
produced Xenia, bolstered by a campaign offering low interest
Overview rates on car loans. Such sales strategies helped push up unit
Conditions during the fiscal year under review were extremely sales year on year. Perodua, our consolidated manufacturing
challenging, as the Japanese economy continued to feel the and sales subsidiary in Malaysia, enjoyed solid sales of its Viva
effects of the global economic recession stemming from and Myvi models. In addition, Perodua launched a new
financial instability in the United States that commenced in the compact passenger car, the Alza, in November 2009, enabling
autumn of 2008. Government economic stimulus packages the company to maintain the country’s top slot in new vehicle
prompted signs of recovery, but the overall economic outlook sales for the fourth consecutive year. However, exports of
remained intransparent. completed vehicles plunged, affected by the global recession.
In the automobile industry, government tax breaks and In China, where Daihatsu is working to improve management
subsidies for purchasers of environmentally considerate cars efficiency by consolidating its management resources, the
prompted a 3.8% year-on-year increase in total domestic unit Company revised its business framework with FAW Jilin
sales, to 4.88 million vehicles. However, this increase was Automobile Co., Ltd.
focused primarily on the market for compact cars (B-segment In consigned production and OEM, tax breaks and
and above), which saw a 10.0% increase. Unit sales of mini subsidies for purchasers of environmentally considerate cars
vehicles, meanwhile, were down 6.1% year on year, falling for prompted robust sales of the Toyota PASSO and other
the third consecutive year. The situation in overseas markets models. However, overall sales in this category declined year
was more positive, and the Group’s principal overseas on year, owing to such factors as lower sales of vehicles not
markets of Indonesia and Malaysia entered a recovery phase eligible for this tax break.
in the autumn of 2009. As a result, the Group’s domestic unit sales fell 19,212,
Under these conditions, in Japan the Daihatsu Group or 3.3%, compared with the previous fiscal year, to 567,840
introduced the new model Mira Cocoa in August 2009 and units. Overseas unit sales decreased 57,208, or 16.0% year
the Tanto Exe, a new mini passenger car, in December. In on year, to 300,621 units. Consigned production and OEM fell
addition, we strove to expand the number of vehicle models 14,819, or 3.5%, to 405,729 units. Accordingly, our total unit
subject to tax breaks for purchasers of environmentally sales fell 91,239, or 6.7% year on year, to 1,274,190 units.
considerate cars. As a result, we have held the top share of Unit sales of consigned engines advanced 82,728, or 17.6%
the mini vehicle market for four consecutive years, since the during the year, to 552,911 units.

(Reference) Trends in the Domestic

Mini Vehicle and Compact Car
(B-segment and above) Markets Consolidated Unit Sales

(Thousands of units) (Thousands of units)

5,000 1,500
1,340 1,370
1,320 1,270
4,000 3,910 1,140
3,590
3,430
3,180 1,000
3,000 2,890

2,030
2,000 1,950 1,890 1,810 1,700
500

1,000

0 0
2006 2007 2008 2009 2010 (FY) 2006 2007 2008 2009 2010 (FY)

Mini vehicles Compact car (B-segment and above) Daihatsu vehicles (Domestic) Daihatsu vehicles (Overseas)
Consigned vehicles (Domestic) Consigned vehicles (Overseas)
Note: Data from the Japan Mini Vehicles Association/
Japan Automobile Dealers Association OEM vehicles

DAIHATSU MOTOR CO., LTD. 18 ANNUAL REPORT 2010

 Review of Operations

Business Performance Operating Expenses

During the fiscal year, the Daihatsu Group’s consolidated net Cost of sales was down ¥63.8 billion, or 4.7%, to ¥1,285.0
sales slipped 3.5%, to ¥1,574.7 billion. Operating income billion as a result of the fall in net sales and other factors. The
grew 6.7%, to ¥40.7 billion, while income before extraordinary cost of sales to net sales ratio fell 1.1 percentage points year
items and income taxes and minority interests rose 11.1%, to on year, to 81.6%. Owing to miscellaneous cost increases,
¥43.8 billion. Net income for the year stood at ¥21.1 billion, selling, general and administrative expenses rose ¥4.2 billion,
down 4.1% from the preceding fiscal year. or 1.7%, to ¥248.9 billion.
Comparing operating income with the preceding term,
positive factors amounted to ¥36.2 billion. Of this amount, Other Income and Expenses
successful cost reduction efforts were responsible for ¥12.3 Although gain on sales of fixed assets decreased ¥1.7 billion,
billion, and lower miscellaneous expenses for ¥23.9 billion. foreign exchange gains amounted to ¥4.5 billion. As a
Meanwhile, changes in sales volumes and in the model mix consequence of this and other factors, the Company’s net
had a ¥33.7 billion negative impact. The difference of ¥2.5 other income and expenses was positive, up ¥1.8 billion from
billion accounts for the increase in operating income during the previous fiscal year.
the year.
Income Taxes (Current and Deferred)
Net Sales Income taxes rose ¥1.1 billion, or 9.7%, compared with the
In the Japanese market, in August 2009 we launched the Mira previous fiscal year, to ¥13.5 billion, mainly due to a ¥2.2
Cocoa, a new-model mini passenger car, and announced billion increase in income before income taxes and minority
another new-model mini passenger car, the Tanto Exe, in interests.
December 2009. However, domestic sales fell nevertheless.
Overseas, sales in Indonesia of the locally produced Xenia Minority Interests in Net Income of Consolidated
were solid, and in Malaysia sales of the Viva and Myvi were Subsidiaries
favorable. Consigned production and OEM benefited from the ADM in Indonesia recorded a year-on-year increase in net
PASSO and other models that fall into the category of income, leading to minority interests in net income of
environmentally considerate cars eligible for tax breaks and consolidated subsidiaries, which is subtracted from
subsidies. However, sales of vehicles not eligible for such tax consolidated income, of ¥7.1 billion. This was ¥2.0 billion
benefits declined, and exports of completed vehicles higher than during the previous fiscal year.
dropped, impacted by the global recession. As a result of the
above, the Daihatsu Group’s consolidated net sales dropped
¥56.6 billion, or 3.5%, compared to the previous fiscal year.

Net Income & Net Income per Share (Basic) &

Net Sales & Operating Income Net Income to Net Sales Ratio Cash Dividends per Share

(Billions of yen) (Billions of yen) (Billions of yen) (%) (Yen) (Yen)

2,000 80 60 3 100 25
1,702.6 1,631.3 2.5
1,637.1 65.2 81.38 81.92
1,574.7 80 78.14 20
1,500 60 2.1 2.1
1,347.9 54.3 17
40 2
48.6 15
33.5 34.7 34.9 60 15
40.7 1.4 51.80 49.66
1,000 38.1 40 1.3 12
12 12
22.0 21.1 40 10
20 1
500 20
20 5

0 0 0 0 0 0
2006 2007 2008 2009 2010 (FY) 2006 2007 2008 2009 2010 (FY) 2006 2007 2008 2009 2010 (FY)

Net Sales Operating Income Net Income Net Income to Sales Ratio Net Income per Share (Basic) Cash Dividends per Share

DAIHATSU MOTOR CO., LTD. 19 ANNUAL REPORT 2010

 Review of Operations

Financial Position and Performance billion decrease in loans and debts.

Analysis As a result, cash and cash equivalents increased ¥48.2
This annual report contains statements pertaining to the billion, to ¥111.7 billion.
future. These statements are judgments as of the end of the
fiscal year under review (March 31, 2010). Trade Notes and Accounts Receivable
The Daihatsu Group’s segments by business category Owing partly to an increase in sales in the second half of the
include the automobile related business and other fiscal year, trade notes and accounts receivable rose ¥12.6
businesses. The percentages of the automobile related billion, to ¥301.2 billion.
business to all segments were 99.5% of net sales and 98.8%
of operating income. With regard to sales of each segment by Property, Plant and Equipment
geographical area, the percentage of Japan is the highest, While we made a capital investment of ¥36.7 billion (excluding
and in the fiscal year under review, the percentages of Japan lease assets), depreciation amounted to ¥72.9 billion
to all geographical segments were 80.0% of net sales and (excluding lease assets), which resulted in total property, plant
68.4% of operating income (excluding inter-area sales and and equipment of ¥438.3 billion, a year-on-year decrease of
transfer). ¥25.7 billion.
Comparing the financial position of the Daihatsu Group
as of the end of fiscal 2010 with that of fiscal 2009, total Investments in Securities
assets increased ¥35.7 billion, to ¥1,134.1 billion; total Investments in securities increased ¥6.6 billion, to ¥70.8
liabilities amounted to ¥737.7 billion, up ¥4.5 billion; and total billion, mainly due to an increase in net unrealized holding
net assets came to ¥396.3 billion, an increase of ¥31.2 billion. gains.
An analysis of the changes in major accounting items is
stated on the following page. Loans and Debts
Long-term debt increased ¥25.6 billion, but short-term debt
Cash and Cash Equivalents dropped ¥44.2 billion. Accordingly, total loans and debts
Net cash provided by operating activities amounted to ¥132.0 stood at ¥180.7 billion, down ¥18.5 billion from the previous
billion, mainly attributable to income before income taxes and fiscal year.
minority interests of ¥41.7 billion and depreciation of ¥78.4
billion. Net cash used in investing activities stood at ¥47.2 Net Assets
billion, including payments of acquisition of property, plant and Buoyed by net income of ¥21.1 billion, net assets increased
equipment of ¥46.9 billion. Net cash used in financing ¥31.2 billion, to ¥396.3 billion.
activities was ¥37.5 billion, mainly resulting from a ¥27.2

Return on Assets & Return on Equity Total Net Assets & Equity Ratio Total Assets

(%) (Billions of yen) (%) (Billions of yen)

15 600 36 1,500

12.3 29.5 29.2 30.2

28.5 28.5
12 11.1 10.8 1,200 1,124.7 1,152.4 1,098.3 1,134.1
396.3 1,027.2
400 369.5 385.8 24
365.1
9 900
6.8 303.3
6.4
6 600
200 12
3.5 3.2 3.1
3 2.0 1.9 300

0 0 0 0
2006 2007 2008 2009 2010 (FY) 2006 2007 2008 2009 2010 (FY) 2006 2007 2008 2009 2010 (FY)

Return on Equity Return on Assets Total Net Assets Equity Ratio

DAIHATSU MOTOR CO., LTD. 20 ANNUAL REPORT 2010

 Review of Operations

Research and Development Activities sales were down 3.5% year on year.
Research and development expenses for the year totaled Sales promotion initiatives at ADM, our subsidiary in the
¥43.7 billion. country, were successful, and sales of the Xenia, a compact
The Daihatsu Group operates under the slogan passenger car, were solid. As a result, ADM claimed the
“Innovation for Tomorrow” in pursuit of its mission: “making second-largest share of the Indonesian market for the second
compact cars loved throughout the world.” We aim to develop consecutive fiscal year.
cars that have high fuel efficiency and high quality, offer strong In Malaysia, sales were firm for our compact passenger
environmental and safety performance and are available at an cars, the Viva and the Myvi. In addition, customer response
affordable price. We promote an aggressive product was positive to the Alza, a seven-passenger MPV introduced
development approach that incorporates all these facets. in November 2009. This solid performance earned Perodua,
In recent years, economic recession and rising global our manufacturing and sales subsidiary in Malaysia, the
environmental awareness have prompted customer needs for number one share of the Malaysian market for the fourth
more compact, lighter and affordable cars. To meet these consecutive year.
needs, Daihatsu is channeling its management resources into The Daihatsu Group’s principal overseas bases, in
the development of technologies and products that heighten Indonesia and Malaysia, are growing rapidly. Ongoing growth
the allure of compact cars, with their advantages of fuel is particularly pronounced in Indonesia, centered on internal
economy and affordability. demand, and the automobile market is expected to
accelerate from recovery to a growth phase. We plan to take
Management’s Recognition of Current advantage the major opportunity this market growth presents
Status and Future Policy to bolster sales in this region and reinforce our profit-
Domestic Sales generation capabilities.
The Japanese mini-vehicle market in the fiscal year ended
March 31, 2010, shrank to 1.70 million units . This volume is Significant Issues
forecast to shrink further in the fiscal year ending March 31, Compact cars are increasingly a focus of attention because of
2011, to 1.65 million units. Furthermore, the outlook is unclear their environmental friendliness and superior fuel performance.
because of the possibility of a downturn in vehicle sales in line Accordingly, we are stepping up initiatives to ensure our
with the end of subsidiaries for purchasers of environmentally ongoing market survival by bringing to market compact cars that
considerate cars. Daihatsu expects to sell 580,000 mini are fuel efficient, affordably priced and resource-conserving.
vehicles, approximately the same number as in the fiscal year Every year, customers grow increasingly quality
under review. conscious. To respond appropriately to their demands, we
Although we expect market conditions to remain difficult, have redoubled our “customer-first” focus and quality
we aim to invigorate sales in the second half of the fiscal year assurance initiatives.
through the complete redesign of a flagship vehicle model. Simultaneous to implementing these initiatives, we will
accelerate efforts to curtail costs, reform procurement
Overseas Business methods and transform our profit structure to be responsive
In Indonesia, although market recovered in the second half, to future changes in the operating environment.

Research and Development Expenses Capital Investment & Depreciation Consolidated Net Sales by Region (FY 2010)

(Billions of yen) (Billions of yen) (Billions of yen)

50 47.8 150
46.7 Europe Others
44.2 44.2 43.7 41.2 16.0
(% change –24.8%) (% change –61.3%)
40 120 114.0 111.7

30 90 83.6 Asia
77.5 76.7 387.8
72.9
65.1 66.4 (% change +12.8%)
60.7
20 60

36.7 Japan
10 30 1,129.5
(% change –5.2%)

0 0
2006 2007 2008 2009 2010 (FY) 2006 2007 2008 2009 2010 (FY)

Capital Investment Depreciation Total 1,574.7

DAIHATSU MOTOR CO., LTD. 21 ANNUAL REPORT 2010

 Review of Operations

Business Risks Risks Concerning Changes in Product Costs

Among the business performance and financial situation items We purchase large volumes of raw materials and parts with
stated in this annual report, the following risks could have an which to manufacture our products, and these are subject to
important influence on the decisions of investors. fluctuations in supply and demand in world markets, changes
in the economic climate of the producing countries, increases
Risks Concerning Changes in the Economic Climate in distribution costs and other factors that result in purchase
Political and social disruptions in Japan and major overseas price increases. This, in turn, raises the Group’s cost of
markets of the Group, such as Indonesia and Malaysia, bring production, which may adversely affect the Group’s business
about changes in the economic climate, which in turn can performance.
affect the Group’s business performance.
Furthermore, the Daihatsu Group, which follows a Risks Concerning Fluctuations in Exchange Rates
management strategy of concentrating resources on the Fluctuations in exchange rates alter the yen equivalents of the
compact car business-chiefly mini vehicles-is subject to the Group’s foreign currency sales to overseas markets as well as
risk that demand in major markets will grow less receptive to the yen equivalents of the foreign currency purchase amounts
compact cars, thereby affecting the Group’s business and other figures in the foreign currency financial statements
performance. of overseas subsidiaries, which can adversely affect the
Group’s business performance.
Risks Concerning Changes in Product Prices and
Market Evaluation Risks Concerning Changes in Legal Requirements
In the automobile industry, business performance can be We conduct business based on laws and regulations related
temporarily affected when a drop in production prices and to environmental matters, such as emissions control and
other adverse situations are caused by an oversupply and by automobile recycling, as well as on laws and regulations for
intensified price competition due to the introduction of taxes in the countries where we are developing our business.
comparable models at lower prices from other companies. Revisions of these laws and regulations may affect the
Although the Group takes consumer demand trends into Group’s business performance.
careful consideration with introducing new vehicle models,
lower-than-expected market reception to the Group’s new Risks Concerning Product Recalls
models or a sharp drop in the standing of existing models Unpredictable product defects that render the Group’s
could affect Group’s business performance. products unable to meet safety standards in Japan and other
countries in which it conducts operations could make the
Group liable for reparations or require a large-scale recall,
which could affect the Group’s business performance.

Moreover, risks other than those stated in the above, such as

natural disasters, could also have a serious impact on
investors’ decisions.

DAIHATSU MOTOR CO., LTD. 22 ANNUAL REPORT 2010

 Consolidated Balance Sheets
March 31, 2010 and 2009

Millions of yen
2010 2009
ASSETS
Current assets:
Cash on hand and in banks ¥ 52,869 ¥ 41,068
Deposits 59,259 22,547
Trade notes and accounts receivable (2) 301,206 288,599
Merchandise and finished products 61,427 67,061
Work in process 17,459 21,006
Raw materials and supplies 17,076 15,269
Deferred tax assets (5) 26,787 25,571
Other (5) 53,389 54,188
Less allowance for doubtful accounts (2,280) (1,665)
Total current assets 587,195 533,647

Fixed assets:
Property, plant and equipment, at cost:
Buildings and structures, net (2)(4) 139,994 139,375
Machinery, equipment and vehicles, net (2)(4) 134,395 161,023
Land 124,222 121,657
Construction in progress 3,582 7,477
Other, net (4) 36,112 34,556
Total investments and other assets (1) 438,306 464,089

Intangible fixed assets 5,936 5,344

Investments and other assets:

Investments in securities (2)(3) 70,886 64,262
Long-term loans receivable 6,995 8,275
Deferred tax assets 19,957 17,629
Other (3) 5,398 5,522
Less allowance for doubtful accounts (571) (402)
Total investments and other assets 102,666 95,287
Total fixed assets 546,909 564,721
Total assets ¥ 1,134,105 ¥ 1,098,368

DAIHATSU MOTOR CO., LTD. 23 ANNUAL REPORT 2010

 Consolidated Balance Sheets

Millions of yen
2010 2009
LIABILITIES
Current liabilities:
Trade notes and accounts payable ¥ 292,717 ¥ 289,422
Short-term debt (2) 109,644 153,847
Accrued income taxes (5) 12,924 4,142
Accrued expenses 73,536 66,370
Accrued bonuses for directors and corporate auditors 227 254
Accrued product warranty 6,785 6,492
Other (2) 95,010 96,414
Total current liabilities 590,846 616,943

Long-term liabilities:
Long-term debt (2) 71,096 45,458
Deferred tax liabilities 5,439 5,112
Accrued retirement benefits for employees 63,247 53,613
Accrued retirement benefits for directors and corporate auditors 1,720 2,843
Other 5,422 9,282
Total long-term liabilities 146,926 116,310
Total liabilities 737,772 733,254

NET ASSETS
Shareholders’ equity:
Common stock: 28,404 28,404
Authorized—1,600,000,000 shares
Issued and outstanding—427,122,966 shares (2010)
427,122,966 shares (2009)
Additional paid-in capital 10,837 10,837
Retained earnings 300,194 283,296
Treasury stock, at cost— (668) (645)
1,092,902 shares (2010)
1,037,893 shares (2009)
Total shareholders’ equity 338,767 321,893

Valuation and translation adjustments

Net unrealized holding gain on securities 12,846 10,128
Foreign currency translation adjustments (8,899) (11,805)
Total valuation and translation adjustments 3,947 (1,676)
Minority interests in consolidated subsidiaries 53,618 44,897
Total net assets 396,332 365,114
Total liabilities and net assets ¥ 1,134,105 ¥ 1,098,368

DAIHATSU MOTOR CO., LTD. 24 ANNUAL REPORT 2010

 Consolidated Statements of Income
Years ended March 31, 2010 and 2009

Millions of yen
2010 2009
Net sales ¥ 1,574,727 ¥ 1,631,395
Cost of sales (1) 1,285,071 1,348,529
Gross profit 289,655 282,866
Total selling, general and administrative expenses (1) 248,907 244,674
Operating income 40,747 38,191
Other income:
Interest income 1,800 1,639
Dividend income 847 1,018
Gain on sales of fixed assets 190 464
Equity in earnings of affiliates 3,152 4,102
Foreign exhchange gains 1,284 —
Miscellaneous income 2,985 3,578
Other expenses:
Interest expenses 1,112 1,360
Loss on sales and disposals of fixed assets 4,080 2,648
Foreign exchange losses — 3,296
Miscellaneous expenses 1,972 2,232
Ordinary income 43,842 39,455
Special income:
Subsidy for facilities (2) 449 715
Gain on sales of property, plant and equipment — 556
Special loss:
Expenses associated with the revision of the China Project (3) 2,015 —
Advanced depreciation of fixed assets (5) 323 1,043
Impairment loss (4) 164 180
Income before income taxes and minority interests 41,787 39,503
Income taxes:
Current 18,540 12,379
Deferred (5,023) (55)
Minority interests in net income of consolidated subsidiaries (7,107) (5,104)
Net income ¥ 21,162 ¥ 22,074

DAIHATSU MOTOR CO., LTD. 25 ANNUAL REPORT 2010

 Consolidated Statements of Changes in Net Assets
Years ended March 31, 2010 and 2009

Millions of yen
Shareholders’ equity Valuation and translation adjustments
Net Foreign Total
Additional Treasury Total unrealized currency valuation and Total
Common paid-in Retained stock, shareholders’ holding gain translation translation Minority net
stock capital earnings cost equity on securities adjustments adjustments interests assets
Balance at March 31, 2008 28,404 10,837 269,539 (563) 308,217 23,890 (3,950) ¥19,939 ¥57,732 ¥385,889
Effect of changes in accounting
policies applied to foreign
subsidiaries — — (1,065) — (1,065) — — — (1,107) (2,172)
Changes during the year
Dividends from retained earnings — — (7,252) — (7,252) — — — — (7,252)
Net income — — 22,074 — 22,074 — — — — 22,074
Acquistion of treasury stock — — — (81) (81) — — — — (81)
Net change in items other
than shareholders’ equity
during the year — — — — — (13,761) (7,855) (21,616) (11,726) (33,343)
Total changes during the year — — 14,821 (81) 14,740 (13,761) (7,855) (21,616) (11,726) (18,602)
Balance at March 31, 2009 ¥28,404 ¥10,837 ¥283,296 ¥(645) ¥321,893 ¥10,128 ¥(11,805) ¥(1,676) ¥44,897 ¥365,114
Effect of changes in accounting
policies applied to foreign
subsidiaries — — — — — — — — — —
Changes during the year
Dividends from retained earnings — — (4,265) — (4,265) — — — — (4,265)
Net income — — 21,162 — 21,162 — — — — 21,162
Acquistion of treasury stock — — — (23) (23) — — — — (23)
Net change in items other
than shareholders’ equity
during the year — — — — — 2,717 2,906 5,624 8,720 14,344
Total changes during the year — — 16,897 (23) 16,874 2,717 2,906 5,624 8,720 31,218
Balance at March 31, 2010 ¥28,404 ¥10,837 ¥300,194 ¥(668) ¥338,767 ¥12,846 ¥(8,899) ¥3,947 ¥53,618 ¥396,332

DAIHATSU MOTOR CO., LTD. 26 ANNUAL REPORT 2010

 Consolidated Statements of Cash Flows
Years ended March 31, 2010 and 2009

Millions of yen
2010 2009
Cash flows from operating activities
Income before income taxes and minority interests ¥ 41,787 ¥ 39,503
Depreciation 78,446 89,877
Increase (decrease) in accrued retirement benefits for employees 9,206 4,160
Increase in accrued retirement benefits for directors and corporate auditors (446) 265
Decrease in allowance for doubtful accounts 446 (68)
Interest and dividend income (2,648) (2,657)
Interest expenses 1,112 1,360
Exchange loss (gain) (160) 390
Equity in (earnings) loss of affiliates (3,152) (4,102)
Loss (Gain) on sales of fixed assets (190) (2,549)
Loss on disposal of fixed assets 4,080 2,648
Loss (Gain) on sales of short-term and long-term investment securities (4) —
Loss (Gain) on valuation of short-term and long-term investment securities 34 63
Decrease (increase) in notes and accounts receivable (10,217) 13,708
Increase in inventories 9,507 (9,341)
Decrease in notes and accounts payable (719) (27,528)
Decrease in consumption taxes payable 1,850 (659)
Others 11,301 (14,658)
Subtotal 140,234 90,412
Interest and dividends received 3,197 4,140
Interest paid (1,047) (1,182)
Income taxes paid (12,263) (17,283)
Income taxes refunded 1,891 —
Net cash provided by operating activities 132,011 76,087

Cash flows from investing activities

Investments in time deposits (162) (146)
Proceeds from refund of time deposits 146 126
Payments for acquisition of fixed assets (46,991) (87,190)
Proceeds from sales of fixed assets 889 3,722
Payments for acquisition of investments in securities (6) (283)
Proceeds from sales of investments in securities 8 —
Proceeds from purchase of investment in a subsidiary resulting in
change in scope of consolidation 186 346
Decrease in short-term loans receivable (2,206) 1,906
Payments for long-term loans receivable (3,603) (4,015)
Proceeds from collection of long-term loans receivable 4,502 921
Net cash used in investing activities (47,234) (84,611)

Cash flows from financing activities

Net decrease in short-term debt (20,503) 5,502
Proceeds from long-term debt 34,971 29,038
Repayments of long-term debt (41,691) (15,722)
Payments for acquisition of treasury stock (5) (522)
Dividends paid (4,265) (7,252)
Dividends paid to minority interests in consolidated subsidiaries (1,228) (2,430)
Repayments of lease obligations (4,799) (5,455)
Net cash provided by financing activities (37,521) 3,157

Effect of exchange rate changes 1,015 (4,169)

Net decrease in cash and cash equivalents 48,271 (9,535)
Cash and cash equivalents at beginning of year 63,468 73,004
Cash and cash equivalents at end of year (1) ¥ 111,740 ¥ 63,468

DAIHATSU MOTOR CO., LTD. 27 ANNUAL REPORT 2010

 Notes to Consolidated Financial Statements
Years ended March 31, 2010

Significant Accounting Policies Forming the (b) Inventory valuation standards and methods
Basis of Presentation of the Consolidated Finished products (manufactured vehicles)
Financial Statements Mainly stated at cost as determined by the cost
average method (method of reducing book value in
1. Scope of consolidation line with decreases in profitability)
(Consolidated subsidiaries: 60) Merchandise (parts/components)
All subsidiaries are included in the scope of consolidation. Mainly stated at cost as determined by the cost
Kanbishi Co., Ltd., an affiliate accounted for by the equity average method (method of reducing book value in
method until the fiscal year ended March 31, 2009, became a line with decreases in profitability)
subsidiary, owing to the acceptance of shares through a Merchandise (purchased vehicles)
capital increase, and was therefore newly included in the Mainly stated at cost as determined by the identified
scope of consolidation. cost method (method of reducing book value in line
Shinmei Diecasting Kogyo Co., Ltd., which was a with decreases in profitability)
consolidated subsidiary through the year ended March 31, Raw materials
2009, was extinguished through a merger with consolidated Mainly stated at cost as determined by the last-in
subsidiary Akashi-Kikai Industry Co., Ltd. first-out method (method of reducing book value in
line with decreases in profitability)
2. Equity method Work in process
(a) Affiliates accounted for by the equity method: 22 Mainly stated at cost as determined by the cost
Major affiliates accounted for by the equity method are average method (method of reducing book value in
Daihatsu Diesel Mfg. Co., Ltd., Metalart Corporation and line with decreases in profitability)
Osaka Daihatsu Corporation.
FAW Daihatsu (Jilin) Body Parts Co., Ltd., was (c) Depreciation methods for significant depreciable assets
excluded from the scope of equity method application
owing to a transfer of Daihatsu’s stake in the company. Property, plant and equipment (excluding lease assets)
Kanbishi Co., Ltd., was excluded from equity method Depreciation is principally computed using the declining
application owing to its conversion to a consolidated balance method.
subsidiary. However, the depreciation of buildings (excluding
attached facilities) acquired on or after April 1, 1998, is
(b) Affiliated companies not accounted for by the equity computed using the straight line method.
method (a total of five companies, including Tono Daihatsu Furthermore, acquisitions made by the Company and
Co., Ltd.) are excluded because they do not have a its domestic consolidated subsidiaries on or before March
material impact on consolidated net income, retained 31, 2007, that have been depreciated down to their final
earnings and others individually or in the aggregate. depreciation limit are depreciated in equal amounts of the
difference between 5% of their acquisition price and their
(c) As for affiliates accounted for by the equity method, when memorandum value over a five-year period from the fiscal
their fiscal year-end is different from the Company’s fiscal year after the fiscal year in which their depreciation limit
year-end, their financial statements as of their fiscal year- reached zero.
end are used.
Intangible fixed assets
3. Fiscal year of consolidated subsidiaries Depreciated principally using the straight-line method
The fiscal year-end for the following five consolidated
subsidiaries is December 31: Perodua Auto Corporation Sdn. Lease assets
Bhd., Perodua Manufacturing Sdn. Bhd., Perodua Engine Lease assets related to finance lease transactions that do
Manufacturing Sdn. Bhd., DMCA Inc. and Tianjin Daihatsu not transfer ownership are depreciated using the straight-
Precision Machinery Co., Ltd. line method over lease period, which corresponds to the
For these subsidiaries, their financial statements as of number of years of useful life, with a residual value of zero.
December 31 are used in the preparation of the Company’s Of finance lease transactions other than those
consolidated financial statements. When significant recognized as transferring ownership of the leased
transactions occur at those subsidiaries between their fiscal properties to the borrower, transactions that commenced
year-end and the Company’s fiscal year-end, these before March 31, 2008, are treated for accounting
transactions are included in the consolidated financial purposes as operating lease transactions.
statements as necessary.
(d) Policy for significant reserve allowances
4. Accounting policies
(a) Fair values of marketable securities and investment in Allowance for doubtful accounts
securities An allowance against losses caused by doubtful
receivables and other bad debts is made based on
Other securities historical credit loss ratios. With specific claims where
With market quotations there is an identified credit risk, an allowance is made for
Stated at the market price on March 31, 2010 estimated uncollectible amounts based on assessment its
(with any unrealized valuation difference regarded recoverability of individual receivables.
under net assets, and with cost computed using
the moving-average method) Accrued bonuses for directors and corporate auditors
To provide for the payment of bonuses for directors and
Without market quotations corporate auditors, the share of estimated bonuses to be
Stated at cost, cost being determined by the paid to directors and corporate auditors for the fiscal year
moving-average method under review are accrued.

DAIHATSU MOTOR CO., LTD. 28 ANNUAL REPORT 2010

 Notes to Consolidated Financial Statements

Retirement benefits and pension plans Notes to consolidated financial statements

To provide the payment of retirement and severance
benefits to employees, accrued retirement benefits are (Notes to consolidated balance sheets)
provided for based on the total amount of projected
retirement benefits obligation reduced by the fair value of 1.
pension plan assets as of the fiscal year-end. (1) Accumulated depreciation on property, plant and
Unrecognized prior service obligations are amortized equipment
on a straight-line basis over the average estimated  ¥744,485 million
remaining service years of the employees (15-18 years)
from the time such liability arose. (2) Other assets pledged as collateral
Actuarial differences are amortized on a straight-line (Assets pledged as collateral)
basis over the average remaining service years of the Trade notes and accounts receivable ¥ 86 million
employees (14-21 years) from the next fiscal year after the Buildings and structures 7,562
gain or loss occurs. Machinery, equipment and vehicles 171
Land 13,577
Accrued retirement benefits for directors, executive officers Investments in securities 288
and corporate auditors Total 21,686
To prepare for the payment of retirement benefits to
directors, executive officers and corporate auditors, a (Liabilities associated with the above)
necessary amount determined in accordance with the Short-term loans ¥20,718 million
internal rules is accrued at the end of the fiscal year. Other liabilities (current liabilities) 49
Long-term debt (including current portion) 6,114
Accrued product warranty Total 26,882
To provide for expenses for after-sales service based on
warranty certificates, service expenses in the amount (3) Investments in Affiliates
estimated to be incurred over the warranty period are Millions of yen
accrued. Category
2010
(e) Accounting procedure of consumption tax Fixed assets
The tax-excluded method is adopted. Investments in securities (shares) ¥35,847
Other assets (cash investment) 171
5. V
 aluation of the assets and liabilities of
consolidated subsidiaries
On the acquisition of a subsidiary, all of the subsidiaries’ (4) The Company received government and other subsidies (a
assets and liabilities that exist at the date of acquisition are special subsidy for corporate structural investment, a
recorded at their fair value as of the date of acquisition. subsidy for development and diffusion of a low-emission
vehicle, gain on insurance adjustment, a subsidy for
6. Goodwill and negative goodwill companies located in industrial parks in the city of Nakatsu,
Goodwill and negative goodwill is recognized as a loss or a a subsidy for supporting new energy business, a subsidy
gain as incurred, due to immateriality. on business promoting the introduction of highly energy
efficient systems for housing and structures, a subsidy from
7. Cash and cash equivalents the city of Kurume for the transfer of industry, a regional
In the consolidated statements of cash flows, cash and cash business promotion subsidy from Shimane Prefecture, a
equivalents are composed of cash on hand, deposits that regional business promotion subsidy from Fukuoka
may be withdrawn on demand and highly liquid investments Prefecture and a business expansion subsidy from the city
purchased with original maturities of three months or less and of Izumo). Accordingly the following amounts are directly
which present a low risk of fluctuation in value. deducted from acquisition costs: buildings of ¥276 million,
structures of ¥8 million, machinery of ¥341 million, tools
and equipment of ¥5 million and land of ¥402 million.

Change in accounting policy (5) On January 15, 2010, the Company’s consolidated
subsidiary in Indonesia, P.T. Astra Daihatsu Motor, received
Partial Amendments to Accounting Standard for from the Indonesian tax authorities a notice of revision of
Retirement Benefits (Part 3) values of inter-company royalty transactions to affiliated
From the fiscal year under review, the Company adopted the companies during the fiscal year ended March 31, 2008,
“Partial Amendments to Accounting Standard for Retirement of approximately 261.2 billion Indonesian rupiahs
Benefits (Part 3)” (ASBJ Statement No. 19, issued on July 31, (equivalent to approximately ¥2,690 million at the
2008). exchange rate prevailing on March 31, 2010), and a
This adoption did not affect the Company’s income. provisional payment was made on February 12, 2010. As
Furthermore, this adoption did not create any variance in the Company views as extremely irrational the stance of
retirement benefit amounts. the Indonesian tax authorities, which is that no royalty
payment deductions may be claimed, the Company
submitted a written statement of objection to the
authorities on April 14, 2010.
In line with its submission of this written statement of
objection, the Company reported its royalties under the
comparable uncontrolled price method and, taking the
possibility of a refund into consideration, stated this

DAIHATSU MOTOR CO., LTD. 29 ANNUAL REPORT 2010

 Notes to Consolidated Financial Statements

amount in the “other” category within “current assets.” (Notes to consolidated statements of changes
Having been subjected to a tax audit by the in net assets)
Indonesian tax authorities during the year ended March 31,
2009, the Company estimated its future taxation risk in the 1. Issued shares
same manner as during the period prior to the decision to
Class of shares Common stock (shares)
levy this tax, stating the amount in “accrued income taxes”
within “current liabilities.” March 31, 2009 427,122,966
Increase —
2. Contingent Liabilities Decrease —
Millions of yen March 31, 2010 427,122,966
2010
Financial institution loans guarantee for employees ¥61
Trade notes receivable, discounted 86 2. Treasury stock
Class of shares Common stock (shares)
March 31, 2009 1,037,893
Increase 55,009
(Notes to consolidated statements of income) Decrease —
March 31, 2010 1,092,902
(1) The following research and development expenses, in the
amount of ¥43,734 million, were included in cost of sales Note: Breakdown of the increase in the number of treasury stocks
and selling, general and administrative expenses for the (common stocks) is as follows:
year ended March 31, 2010.
Increased shares by purchasing the financial shares 5,971 shares
Shares attributable to the Company owing to changes
(2) The subsidy for facilities comprises delivered amounts of a in investment ratios of affiliated companies 49,038 shares
subsidy promoting the introduction of highly energy
efficient systems for housing and structures, a regional
business promotion subsidy from Fukuoka Prefecture, a 3. Items related to share options
special subsidiary for corporate structural investment from None
Shiga Prefecture, a regional business promotion subsidy
from Shimane Prefecture and a business expansion 4. Cash dividends
subsidy from the city of Izumo. (1) Dividends paid in fiscal 2010
Resolution
(3) In relation to a brand changeover in China, the Company
Annual general Board of
recorded signage disposal and other expenses of ¥1,031 meeting of Directors
million and a loss on the transfer of investment securities of shareholders held on meeting held on
¥984 million. June 26, 2009 November 2, 2009
Class of shares Common stock Common stock
(4) During the fiscal year under review, impairment losses were Total dividends
recorded on the following assets. (Millions of yen) 2,132 2,132
Cash dividends per
Purpose Category Location share 5 5
Idle Land Tochigi Prefecture, other locations Basis date March 31, 2009 September 30, 2009
Effective date June 29, 2009 November 30, 2009
The Company classifies its assets by grouping the assets
for vehicles and idle assets.
Above assets will not be utilized in the future and their (2) Dividends whose basis date belongs to fiscal 2010, but
market value has already decreased significantly. effective date of dividends falls in the next fiscal year 2011.
Therefore, the Company determined to write-down their Resolution
book value to a recoverable value. As a result, a special June 29, 2010
loss is recorded as the impairment loss (¥164 million) Annual general meeting
of shareholders
related to such write-down.
In addition, the recoverable value is determined based Class of shares Common stock
on their net sales price, and faire value is considered Source of dividends Retained earnings
negligible. Market value for land is determined based on Total cash dividends (Millions of yen) 2,985
the appraisal value as determined by a real estate Cash dividends per share 7
appraiser. Basis date March 31, 2010
Effective date June 30, 2010
(5) Advanced depreciation of property, plant and equipment is
the amount of the compensation mentioned in (2) above as
subsidies that are directly deducted from acquisition costs.

DAIHATSU MOTOR CO., LTD. 30 ANNUAL REPORT 2010

 Notes to Consolidated Financial Statements

(Notes to consolidated statements of cash (As a lessor)

flows) Acquisition cost, accumulated depreciation and net book
value of leased assets were as follows:
1. Cash and cash equivalents at the end of the period are Millions of yen
reconciled to items on the consolidated balance sheets as 2010
follows:
(As of March 31, 2010) (1) Acquisition cost:
Millions of yen Machinery, equipment and vehicles ¥ 41
2010 Other (property, plant and equipment) 28
Cash on hand and in banks ¥ 52,869 Total ¥ 70
Time deposits with original maturities of Accumulated depreciation:
more than 3 months (388) Machinery, equipment and vehicles ¥ 35
Deposits 59,259 Other (property, plant and equipment) 25
Total ¥111,740 Total ¥ 61
Net book value:
Assets and liabilities associated with financial lease Machinery, equipment and vehicles ¥ 5
transactions that were recorded in fiscal 2010 amounted to Other (property, plant and equipment) 3
¥7,560 million, respectively. Total ¥ 8
(2) Future minimum lease payments equivalent:
Due within one year ¥ 9
Due after one year 7
(Lease transactions)
Financial leases that do not transfer ownership prior to the Total ¥ 17
first year of application of “Accounting Standards for Lease (3) Lease revenues and depreciation:
Transactions” were as follows: Lease revenues ¥ 14
Depreciation 4
(As a lessee)
Pro forma information regarding acquisition cost, accumulated The amount equivalent to future minimum lease payments is calculated
depreciation and net book value of leased assets were as using the inputted income method because future minimum lease
payments and the estimated remaining value account for only a small
follows:
proportion of operating receivables.
Millions of yen
2010
1. Financial lease transactions
(1) Acquisition cost equivalent:
Machinery, equipment and vehicles ¥ 4,854 (As a lessee)
Other (property, plant and equipment) 1,914 (1) Lease assets
Finance lease transactions that do not transfer ownership
Total ¥ 6,769
Property, plant and equipment
Accumulated depreciation equivalent: Primarily, large-scale computing and peripheral equipment,
Machinery, equipment and vehicles ¥ 2,926 and molds
Other (property, plant and equipment) 1,325
Total ¥ 4,252 (2) Method of depreciating lease assets
Straight-line method with a residual value of zero and the
Net book value equivalent: lease period as the service life
Machinery, equipment and vehicles ¥ 1,928
Other (property, plant and equipment) 589 2. Operating lease transactions
Total ¥ 2,517
(As a lessee)
(2) Future minimum lease payments equivalent:
Due within one year ¥ 854 Millions of yen
Due after one year 1,662 2010
Total ¥ 2,517 Future minimum lease payments:
Due within one year ¥ 326
The amounts equivalent to the acquisition cost of leased assets and future
Due after one year 2,291
minimum lease payments are calculated based upon the inputted interest
expense method because future minimum lease payments account for only Total ¥2,618
a small proportion of property, plant and equipment.

(3) Lease payments and depreciation equivalent: ¥ 937 (As a lessor)

Lease payments
Millions of yen
Depreciation equivalent 937
2010
(4) Method of calculating depreciation equivalent amount for Future minimum lease income:
leases: Due within one year ¥ 76
The depreciation equivalent amount of the leases is calculated using the
straight-line method using the remaining balance divided by the remaining Due after one year 936
years in the lease term. Total ¥1,013

DAIHATSU MOTOR CO., LTD. 31 ANNUAL REPORT 2010

 Notes to Consolidated Financial Statements

(Financial Instruments) 2. Fair Value of Financial Instruments

Fiscal year ended March 31, 2010 Fair values as of March 31, 2010 (the end of the fiscal year
under review) and differences between fair values and
(Additional information) consolidated balance sheet amounts are as follows:
From the fiscal year under review, the Company has adopted Millions of yen
accounting standards entitled “Accounting Standard for Consolidated
Financial Instruments (ASBJ Statement No.10, issued on balance sheet Fair value Difference
amount
March 10, 2008)” and “Guidance on Disclosures about Fair
Value of Financial Instruments” (ASBJ Guidance No.19, (1) Cash on hand and in
issued on March 10, 2008). banks ¥ 52,869 ¥ 52,869 —
(2) Deposits 59,259 59,259 —
1. Financial Instruments (3) Trade notes and
(1) Policies on Financial Instruments accounts receivable 301,206 294,637 ¥ (6,569)
The Daihatsu Group raises funds through borrowings from (4) Investments in
banks and other financial institutions for such purposes as securities 41,513 38,337 (3,176)
sales financing and the acquisition of property, plant and (5) Long-term loans
equipment. Temporary surpluses are placed in short-term receivable 6,995 6,999 3
deposits with its parent company, Toyota Motor Corporation, Total assets 461,845 452,102 (9,742)
and banks and other financial institutions. Derivative (1) Trade notes and
transactions are used to hedge exchange rate fluctuation risks accounts payable 292,717 292,717 —
on trade liabilities and financial obligations denominated in (2) Short-term debt 109,644 109,644 —
foreign currencies. The Company does not engage in (3) Accrued Income
speculative trading. taxes 12,924 12,924 —
(4) Long-term debt 71,096 70,130 (965)
(2) Financial Instrument Content and Risk Total liabilities 486,383 485,417 (965)
Trade notes and accounts receivable, which are claimable
assets, are subject to customer credit risk. Investments in Derivative
transactions ¥ (68) ¥ (68) —
securities, most of which are equity securities held to cement
operations with business partners, are subject to price
fluctuation risk. Note 1. Method of calculating fair values of financial
Trade notes and accounts payable, which are trade instruments and matters related to investments in
liabilities, are payable within one year. securities and derivative transactions
Bank loans, which are taken out to fund working capital
and capital investment, are subject to interest rate fluctuation Assets
risk in line with changes in market and credit conditions. (1) Cash on hand and in banks and (2) Deposits
As derivative transactions are used to hedge the risk of As settlement terms on these items are short, and their fair
future exchange rate fluctuations, the Company engages in values are nearly equal to their book values, their book
forward exchange contracts to hedge risk in relation to trade values are taken as their fair values.
liabilities that are denominated in foreign currencies and (3) Trade notes and accounts receivable
employs currency swaps to hedge risks related to bank loans Fair value is calculated by grouping these receivables by
that are denominated in foreign currencies. period and discounting each to their present value by a
rate that takes into account their periods to maturity and
(3) System for Managing Risks Related to Financial Products credit risk.
With regard to trade liabilities, the Company manages (4) Investments in securities
transactions for each business partner by payment due date Quoted prices on securities exchanges are taken as fair value.
and balance. Market prices on investments in securities are For details on investments in securities, refer to the section
periodically checked and reported to the Board of Directors. entitled “(Short-term investment securities and investment
Reports on the Group’s status on bank loans are securities).”
submitted to the Board of Directors. (5) Long-term loans receivable
The counterparties to all such transactions are highly Fair value is calculated by discounting these instruments to
credible banks, therefore the credit risk is extremely low. their present value, adding a percentage for the credit
These transactions are engaged in based on internal spread to the appropriate indicator.
regulations and in-house rules approved recognized by the
Board of Directors, and are reported on a regular basis to the Liabilities
Board of Directors and other important meetings. (1) Trade notes and accounts payable and (2) Short-term debt
As settlement terms on these items are short, and their fair
values are nearly equal to their book values, their book
values are taken as their fair values.
(3) Accrued income taxes
As settlement terms on these items are short, and their fair
values are nearly equal to their book values, their book
values are taken as their fair values.
(4) Long-term debt
The fair value of long-term debt is determined by
discounting the total amount of principal and interest by the
assumed interest rate on new borrowings of the same type.

DAIHATSU MOTOR CO., LTD. 32 ANNUAL REPORT 2010

 Notes to Consolidated Financial Statements

Derivative transactions
For details on derivative transactions, refer to the section entitled “(Derivative transactions).”

Note 2. As unlisted equity securities (value stated in the consolidated balance sheets of ¥29,373 million) have no quoted market
value and their fair value is not readily available, they are not included in “(4) Investments in securities.”

Note 3. Expected redemption amounts of financial obligations with maturities and investments in securities after the balance sheet
date.
Millions of yen
Type More than 1 year More than 5 years More than
1 year or less to 5 years to 10 years 10 years
Cash on hand and in banks ¥ 52,869 — — —
Trade notes and accounts receivable 219,812 ¥ 80,757 ¥ 636 —
Investments in securities
Other investments in securities with maturities
(Japanese government bonds)
Long-term loans receivable — 288 — —
2,212 2,806 1,664 ¥ 312
Total ¥274,894 ¥ 83,851 ¥ 2,301 ¥ 312

Note 4. Expected repayment amounts of long-term debt falling due after the consolidated balance sheet date.
Millions of yen
Type More than 1 year More than 2 years More than 3 years More than 4 years
1 year or less More than 5 years
to 2 years to 3 years to 4 years to 5 years
Long-term debt ¥11,497 ¥15,998 ¥32,125 ¥16,539 ¥ 5,683 ¥ 749
Total ¥11,497 ¥15,998 ¥32,125 ¥16,539 ¥ 5,683 ¥ 749

(Securities)
Fiscal year ended March 31, 2010

1. O
 ther securities with market values 2. Other securities sold in this fiscal year
Millions of yen Millions of yen
Type Consolidated Category Proceeds from Total gain on Total loss on
Acquisition
balance sheet Difference sales sales sales
cost
amount
Stocks ¥8 ¥4 —
Securities whose
carrying value exceeds Total ¥8 ¥4 —
their acquisition cost:
Stocks ¥33,180 ¥11,668 ¥21,512
Bonds 288 282 5
Subtotal 33,468 11,950 21,517
Securities whose
carrying value dose
not exceeds their
acquisition values:
Stocks 118 168 (49)
Bonds — — —
Subtotal 118 168 (49)
Total ¥33,587 ¥12,119 ¥21,467
Note: The market values of listed marketable securities are principally
determined by closing prices on the Tokyo Stock Exchange.

DAIHATSU MOTOR CO., LTD. 33 ANNUAL REPORT 2010

 Notes to Consolidated Financial Statements

(Derivative transactions)
Fiscal year ended March 31, 2010

1. D
 erivative Instruments for Which Hedge Accounting is Applied
(Currency)
Millions of yen
Type Contract/notional Contract/notional Fair value Gain (loss)
amount amount/over 1 year
Non-market transactions
Foreign currency forward contracts:
Buying Yen ¥5,806 — ¥(29) ¥(29)
Selling U.S. dollars 372 — 0 0
Currency swaps:
Yen receipt, Indonesian rupiah payment 437 — (40) (40)
Total ¥6,616 — ¥(68) ¥(68)
Notes: Calculation of fair value is based on information provided by the financial institutions.

(Retirement Benefits)
1. Outline of retirement benefit plans 3. Items regarding retirement benefit-related costs
The Company and its consolidated subsidiaries have Fiscal year ended March 31, 2010
corporate pension funds, welfare pension funds plans, tax- Millions of yen
qualified pension plans, termination allowance plans and
2010
defined contribution plans.
The Company has transferred some portion of its a. Service costs ¥15,928
termination allowance systems to the defined contribution b. Interest costs 2,084
plans. c. Expected return on pension plan assets (781)
d. Amortization of prior service obligations (437)
2. Items regarding accrued retirement benefit e. Amortization of actuarial differences 3,002
obligations for employees
As of March 31, 2010 f. Total retirement benefit-related costs
(a+b+c+d+e) ¥19,797
Millions of yen
2010 Notes:
1. Retirement benefit-related costs for consolidated subsidiaries adopting
a. Retirement benefit obligations ¥(166,146) the simplified method are included in a. service costs.
b. Pension plan assets 78,054 2. The service cost of ¥9,992 million for consolidated subsidiaries who
have adopted a multi-employer pension plans is included in “a. Service
c. Accrued retirement benefits for employees 63,247 costs” for fiscal 2010. The amount of pension contributions was ¥1,365
d. Pre-paid pension plan expenses 364 million for fiscal 2010.
3. In fiscal 2010, service costs include ¥745 million in pension contributions
e. Balance (a+b+c+d) ¥ (25,209) to defined contribution plans.
(Details of balance)
f. Unrecognized actuarial differences ¥ (32,108) 4. Assumptions used in accounting for retirement
g. Unrecognized prior service obligations benefit obligations
(decrease of obligations) 6,899 a. Method of attributing Straight-line method
h. Balance (f+g) ¥ (25,209) benefits to period of
service
Notes: b. Discount rate 2.0%
1. Certain consolidated subsidiaries have adopted a simplified method for
c. Expected rate of return 2.0%
calculating retirement benefit obligations.
2. The figures as of March 31, 2010, include retirement benefit obligations on pension plan assets
and pension plan asset amounts based on the balance of the minimum d. Amortization period for 15-18 years
funding standard for the calculation of pension financing, and the prior service obligation Amortized on a straight-line
difference of ¥17,697 million is included in accrued retirement benefits basis over the average estimated
for employees. remaining service years of
3. The decrease in retirement benefit obligations resulted from the transfer
employees from the time such
of a portion of the Company’s termination allowance plans to defined
contribution plans. liability arises
e. Amortization period for 14-21 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

DAIHATSU MOTOR CO., LTD. 34 ANNUAL REPORT 2010

 Notes to Consolidated Financial Statements

(Tax effect accounting)

1. T
 he main components of deferred tax assets and 2. Main components of the significant differences
liabilities are as follows: between the statutory tax rate and the effective
Millions of yen
tax rate after adjustments:
2010 Millions of yen
2010
Deferred tax assets:
Accrued retirement benefits for employees ¥25,552 Statutory tax rate 40.5%
Accrued expenses 18,148 (Adjustments)
Deferred expenses for sales promotion, etc. Equity in earnings of affiliates (7.5)
under the corporate income tax law 1,732 Difference in effective tax rate for overseas
Accrued product warranty 2,268 subsidiaries (7.0)
Tax loss carry forward 195 Tax credit (3.4)
Allowance for doubtful accounts 386 Entertainment expenses and others 2.8
Other 13,013 Amortization of goodwill 2.5
Subtotal 61,296 Valuation allowance 1.3
Less valuation allowance (2,370) Other 3.1
Total deferred tax assets 58,926 Effective tax rate after adjustments 32.3%

Deferred tax liabilities:

Net unrealized holding gain on securities (8,747)
(Investment and Rental Property)
Fiscal year ended March 31, 2010
Reserve for advanced depreciation of
property, plant and equipment (5,087)
(Additional information)
Other (4,450)
From the fiscal year under review, the Company adopted the
Total deferred tax liabilities (18,286) “Accounting Standard for Disclosures about Fair Value of
Net deferred tax assets ¥40,640 Investment and Rental Property (ASBJ Statement No. 20,
November 28, 2008) and the “Guidance on Accounting
Note: Net deferred tax assets for the fiscal year under review are included Standard for Disclosures about Fair Value of Investment and
in the following consolidated balance sheet line items.
Current assets–Deferred tax assets ¥26,787 million Rental Property” (Accounting Standards Board of Japan
Fixed assets–Deferred tax assets 19,957 Guidance No. 23, November 28, 2008).
Current liabilities–Deferred tax liabilities (665)
Long-term liabilities–Deferred tax liabilities (5,439) As the amount of investment and rental property owned by
the Company is insignificant, this note has been omitted.

(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
Europe and Corporate or
Fiscal year ended March 31, 2010 Japan Asia others Total elimination Consolidation
I. Sales and operating income (loss):
Sales:
Sales to outside customers ¥1,193,064 ¥ 368,564 ¥ 13,098 ¥1,574,727 ¥ — ¥1,574,727
Inter area sales and transfer 83,499 12,646 — 96,146 (96,146) —
Total sales 1,276,563 381,211 13,098 1,670,873 (96,146) 1,574,727
Operating expenses 1,253,280 363,782 13,108 1,630,171 (96,191) 1,533,979
Operating income 23,283 17,429 (10) 40,702 45 40,747
II. Assets 977,459 161,203 8,989 1,147,651 (13,546) 1,134,105
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

DAIHATSU MOTOR CO., LTD. 35 ANNUAL REPORT 2010

 Notes to Consolidated Financial Statements

Overseas sales
Millions of yen
Fiscal year ended March 31, 2010 Asia Europe Other Total
I. Overseas net sales ¥ 387,853 ¥ 41,230 ¥ 16,083 ¥ 445,167
II. Consolidated net sales 1,574,727
III. Percent of consolidated net sales 24.6% 2.7% 1.0% 28.3%
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: Italy, Germany
(3) Other: Algeria, Egypt
3. Overseas sales represent sales outside of Japan by the Company and its consolidated subsidiaries.

Related Party Information

Fiscal year ended March 31, 2010

1. Related party transaction

Owning (or Amount of Balance at
Name of Paid-in Principal owned) Business Contents of transaction year end
Type related Address Account
capital business shares with relationship transaction
company Millions of yen Millions of yen
voting rights
Parent Toyota Motor Toyota, ¥397,049 Automobile (Owned) Provision of Accounts
Company Corporation Aichi million manufacturing Directly Sales of
consigned receivables
Prefecture consigned
51.53% vehicles ¥333,009 and other ¥48,717
cars, and
and OEM current
Indirectly others
vehicles assets
0.13%
Trade
Concurrent accounts
directors, Purchase of
¥137,087 payable and
etc. automotive ¥28,111
accrued
parts expenses,
and other
Deposits
for cash ¥40,828 Deposits ¥59,259
management
system

Notes:
1. Amount of transaction stated above does not include consumption taxes, while Balance at year-end includes consumption taxes.
2. Terms of transactions and decision-making policy of the terms
(a) The sales prices for consigned cars are determined, in the same way as terms of ordinary transactions, by negotiation based on our proposed price while
paying due consideration to the market prices.
(b) The purchase prices of automobile parts are determined, in the same way as terms of ordinary transactions, by negotiation while paying due consideration
to the given quotes and market prices.
(c) The interest rate of the deposit to the Cash Management System (CMS) is determined by considering the market interest rate. The amounts of transaction
recorded are the average balances during the period.

2. N
 otes regarding the parent company or affiliated companies
(a) Information regarding the parent company Toyota Motor Corporation (Listed on the Tokyo Stock Exchange, Osaka Securities
Exchange, Nagoya Stock Exchange, Fukuoka Stock Exchange, Sapporo Stock Exchange, New York Stock Exchange and the
London Stock Exchange)
(b) Overview of financial information of important affiliated companies Nothing to report.

(Per Share Information)

Millions of yen Each amount per share is calculated based on following
items:
2010
Net assets per share ¥804.43 1. Net assets per share
Net income per share 49.66 Millions of yen
2010
Diluted net income per share is not listed in the above since
there was no potential share dilution. Total net assets ¥396,332
Amount deducted from total net assets (53,618)
(Of the above amount, minority interests) (53,618)
Total net assets for common stocks ¥342,714
Number of issued and outstanding common
stocks at the fiscal year-end (thousand shares) 426,030

DAIHATSU MOTOR CO., LTD. 36 ANNUAL REPORT 2010

 Notes to Consolidated Financial Statements

2. Net income per share on June 4, 2010). This revision includes an additional
Millions of yen
assessment on net sales for the year of 686.2 billion
Indonesian rupiahs (¥6,999 million at the abovementioned
2010
exchange rate) and an assessment of 376.0 billion rupiah
Net Income ¥ 21,162 (¥3,836 million at the abovementioned exchange rate) on
Amount not attributable to common stocks — royalty transactions with affiliated companies and a provisional
(Of the above amount, bonuses for directors tax refund of 105.7 billion Indonesian rupiahs (¥1,078 million
and corporate auditors appropriated from at the abovementioned exchange rate). The Indonesian tax
retained earnings) — authorities, by comparing a sample profit ratio and the profit
Net income for common stocks ¥ 21,162 ratio of Astra Daihatsu, claim that Astra Daihatsu has
Average number of issued and outstanding understated its sales, and says that it will disallow the entire
common stocks during the fiscal year-end royalty exemption. The Company considers this decision
(thousand shares) 426,072 extremely irrational and has said that neither it nor its
consolidated subsidiary could accept this revised disposition.
Consequently, the Company has filed for cancellation of this
disposition. As it is difficult at present to forecast the
conclusion of this matter, the Company and its consolidated
(Important Subsequent Events) subsidiary are unable to forecast its impact on their finances.
On June 4, 2010, the Company’s consolidated subsidiary in Furthermore, the Company is calculating its tax liabilities
Indonesia, P.T. Astra Daihatsu Motor, received from the following March 31, 2010, in the same manner as in the past.
Indonesian tax authorities revised statement of sales and the At present, the Company has received no instruction from the
values of inter-company royalty transactions to affiliated authorities to do otherwise.
companies during the fiscal year ended March 31, 2009, of
approximately 956.5 billion Indonesian rupiahs (equivalent to
approximately ¥9,757 million at the exchange rate prevailing

Consolidated Supplementary Schedule

Schedule of Borrowings
Millions of yen %
Category As of March 31, As of March 31, Average interest Repayment period
2009 2010 rate
Short-term borrowings ¥115,053 ¥ 98,147 0.78 —
Current portion of long-term debts 38,793 11,497 1.37 —
Current portion of lease repayment obligations 4,411 11,175 7.98 —
Long-term debt (excluding current portion) (Note 2) 45,458 71,096 1.33 April 25, 2011, to
January 31, 2021
Lease obligations (excluding current portion) 4,386 2,571 4.71 —
Funds raised through the liquiditization of interest-bearing debt
among consolidated companies 15,575 11,755 0.81 —
Subtotal ¥214,880 ¥206,244 — —
Notes: 1. “Average interest rate” refers to the weighted average interest rate on all the balance of total borrowings at the end of the fiscal year.
2. Long-term debt and lease obligations (including current portion) coming due within five years of the balance sheet date are as follows.

Millions of yen
More than 1 year More than 2 years More than 3 years More than 4 years
to 2 years to 3 years to 4 years to 5 years
Long-term debt ¥15,998 ¥32,125 ¥16,539 ¥ 5,683
Lease obligations 2,027 365 102 42

Other
Consolidated net sales by quarter
First quarter Second quarter Third quarter Fourth quarter
(April 1, 2009, to June (July 1, 2009, to (October 1, 2009, to (January 1, 2010, to
30, 2009) September 30, 2009) December 31, 2009) March 31, 2010)
Net sales (Millions of yen) ¥355,704 ¥363,204 ¥391,090 ¥464,727
Income before income taxes (Millions of yen) 6,083 5,810 14,215 15,677
Net income (Millions of yen) 3,554 3,251 8,058 6,299
Net income per share (Yen) 8.34 7.63 18.91 14.78

DAIHATSU MOTOR CO., LTD. 37 ANNUAL REPORT 2010

 Investor Information

Directors, Corporate Auditors and Corporate Data (As of April 1, 2010)

Executive Officers (As of June 29, 2010) Company Name Daihatsu Motor Co., Ltd.
Chairman Founded March 1. 1907
Kousuke Shiramizu Paid-in Capital ¥28,404 million
Vice Chairman
Number of Employees 13,452
Katsuhiko Okumura
President
Koichi Ina Shares of Common Stock (As of March 31, 2010)
Executive Vice Presidents
Katsuyuki Kamio Product Marketing Group, Authorized: 1,600,000,000 shares
Sales & Marketing Group
Issued: 427,122,966 shares
Masanori Mitsui R&D Group, Headquarters of Production
Group, Quality Generalization Group,
Quality Group, Purchasing Group Number of Shareholders: 16,115
(Of the total number of the shareholders, there were 1,551 shareholders with less than
Directors (Senior Managing Executive Officers) one trading unit accounting for 1,223 thousand shares.)
Masahiro Takahashi Administration Group
Takashi Nomoto Indonesia & Malaysia Operations Group, Shareholders Register Manager
President, P.T. Astra Daihatsu Motor
Mitsubishi UFJ Trust and Banking Corporation
Kenji Baba Sales & Marketing Group
Naoto Kitagawa Product Marketing Group Services Corporation
Statutory Corporate Auditor Mitsubishi UFJ Trust and Banking Corporation
Kunihiko Morita Osaka Corporate Agency Division
Corporate Auditors 3-6-3 Fushimimachi Chuo-ku, Osaka 541-8502, Japan
Kosuke Ikebuchi*
Takashi Matsuura*
Kenji Yamamoto* Major Shareholders and Ownership
Senior Executive Officers Name Share holding ratio (%)
Hiroshi Okano Purchasing Group
Katsuhiro Ikoma Quality Group Toyota Motor Corporation 51.19
Takamasa Kurinami Sales & Marketing Group Japan Trustee Services Bank, Ltd. 2.64
Masahiro Fukutsuka R&D Group (Trust account)
Executive Officers The Master Trust Bank of Japan, Ltd. 2.36
Sunao Matsubayashi R&D Group (Compact Cars (Trust account)
Development for Overseas)
Hitoshi Horii Sales & Marketing Group Japan Trustee Services Bank, Ltd. 2.19
(Domestic Sales, BR** Special (Trust account 9)
Purpose Vehicle Project Dept.) The Bank of Tokyo-Mitsubishi UFJ, Ltd. 1.13
Noriyoshi Matsushita Vice President, Akashi-Kikai
Industry Co., Ltd Ohgi Shokai Co., Ltd. 1.10
Shigenobu Uchikawa Administration Group (Tokyo Office, Mitsui Sumitomo Insurance Co., Ltd. 0.96
Public Relations, Government &
Industrial Affairs Division) Nissay Dowa General Insurance Co., Ltd. 0.85
Masahiko Kawatsu Product Marketing Group (Styling)
Nippon Life Insurance Company 0.71
Makoto Irie Administration Group (Personnel
& General Affairs Division) Sumitomo Mitsui Banking Corporation 0.69
Osamu Tada Administration Group (Corporate
Planning Division), BR Promotion Div.
Shigeharu Toda Sales & Marketing Group (Overseas Sales
& Marketing Division), Indonesia & Malaysia Stock Price Trends (From April 1, 2009, to March 31, 2010)
Operations Group (Headquarters Office) (Yen)
Yoshifumi Kishimoto Headquarters of Production Group (Head 1,200
Ikeda Plant, Kyoto Plant, Shiga Ryuo
Plant, Global Production Support Center) 1,100
Shinsuke Hori R&D Group (K-Car*** Development)
Hiroshi Kajikawa Vice President, Aoi Machine 1,000
Industry Co., Ltd.
Makoto Mizutani Headquarters of Production Group (Production 900
Control Division, Global Production Planning
Division, Logistics Division)
800
Keiichi Shirakawa Headquarters of Production Group
(Power Train Production Engineering
Division, Vehicle Production Engineering 700
Division, Machinery Engineering Division) 2009 2010
Apr. May. Jun. Jul. Aug. Sep. Oct. Nov. Dec. Jan. Feb. Mar.
Hajime Nishimura Indonesia & Malaysia Operations Group
(Senior Director, P.T. Astra Daihatsu Motor) Figures are average closing prices, simple averages of closing prices on
trading days of the Tokyo Stock Exchange. Amounts of less than one yen
Miki Ibaraki R&D Group (Power Train Development) are rounded.
Environmental Affairs Division,
Management Department for Toyota
* Outside corporate auditors under the Corporate Law of Japan
** Business Reform
*** Mini vehicles

DAIHATSU MOTOR CO., LTD. 38 ANNUAL REPORT 2010

 Investor Information

Major Domestic and Overseas Affiliated Companies (As of June 30, 2010)
Capital or
Name Registered address investment Major products and lines of businesses
(millions of yen)

Major consolidated subsidiaries

Manufacture of ATRAI WAGON, HIJET CARGO, HIJET TRUCK, Mira, PLEO**,
Daihatsu Motor Kyushu Co., Ltd. Nakatsu, Oita 6,000
Mira Cocoa, MOVE Conte, TANTO EXE, LUCRA**, Be-go, Rush**
Aoi Machine Industry Co., Ltd. Konan, Shiga 300 Manufacture of processed body parts and parts for agricultural equipment
Manufacture of engines, drivetrain components, parts for agricultural
Akashi-Kikai Industry Co., Ltd. Kako, Hyogo 300
equipment, and hydraulic and diesel devices
Daihatsu Metal Co., Ltd. Kawanishi, Hyogo 205 Processed cast parts
Daihatsu Credit Co., Ltd. Chuo, Tokyo 300 Consumer finance, debt guarantees, and leasing
Daihatsu Transportation Co., Ltd.
Ikeda, Osaka 30 Vehicle transport handler, cargo and transport, and vehicle transportation
Daihastu Tokyo Sales Co., Ltd. Chuo, Tokyo 490 Retail sale of automobiles and automobile parts
Tönisvorst, EURO
Daihatsu Deutschland GmbH Wholesale of automobiles and automobile parts
Germany 4.2 million
Shah Alam, RM
Perodua Manufacturing Sdn. Bhd. Manufacture of VIVA, Myvi, AVANZA*
Malaysia 140.0 million
Jakarta, RP Manufacture of XENIA, TERIOS, Grand Max, Luxio, AVANZA*, Rush**,
P.T. Astra Daihatsu Motor
Indonesia 894.37 billion Townace**/Liteace** and sale of automobiles and automobile parts

Major affiliates accounted for by the equity method

Manufacture and sale of marine engines, land engines, gas turbines,
cogeneration systems, and other related parts.
Daihatsu Diesel Mfg. Co., Ltd. Osaka, Osaka 2,434
Manufacture and sale of diesel engines, gas turbine engines, construction
equipment, auto door devices, and aluminum wheels.
Manufacture of automobile parts, parts for construction equipment and parts
Metalart Corporation Kusatsu, Shiga 2,143
for agricultural equipment
Osaka Sayama, Manufacture and sale of precision gears, axles for car chassis front and rear,
Asano Gear Co., Ltd. 324
Osaka gear boxes, transmissions, and machine tools
* Consigned vehicles ** OEM vehicles

Major Domestic Offices/Sales and Service Network

Head Office Major Domestic Plants (As of June 30, 2010)
1-1, Daihatsu-cho, Ikeda, Name Plant location Established Products
Osaka 563-8651, Japan May 1939
Phone: +81-72-751-8811 Press parts, machine processed parts
Ikeda, (Plant No. 1)
http://www.daihatsu.co.jp (Japanese) Head (Ikeda) Plant
Osaka May 1961 ESSE, TERIOS KID, Copen, BOON, COO,
http://www.daihatsu.com (English) (Plant No. 2) PASSO*, bB*, DEX**
April 1974
Engines, transmissions, light alloy castings, etc.
Tokyo Office Gamo, (Plant No. 1)
Shiga (Ryuo) Plant
19-15, Shinbashi, 6-chome, Minato-ku, Shiga January 1989
MOVE, TANTO
Tokyo 105-0004, Japan (Plant No. 2)
Otokuni, BOON Luminus, PASSO SETTE**, Probox*,
Kyoto Plant April 1973
Sales and Service Network Kyoto SUCCEED*, Porte*
Domestic Distributors: 62 companies Daihatsu Motor November 2004 ATRAI WAGON, Dias Wagon**, HIJET CARGO,
Overseas Distributors: Kyushu Co., Ltd.
Nakatsu, (Plant No. 1) HIJET TRUCK, Mira, PLEO**, Mira Cocoa,
Approx. 130 companies Oita (Nakatsu)
Oita November 2007 MOVE Conte, TANTO EXE, LUCRA**, Be-go,
No. 1 and
(As of June 29, 2010) No. 2 Plant (Plant No. 2) Rush**
Daihatsu Motor
Kurume,
Kyushu Co., Ltd. August 2008 Engines, transmissions, etc.
Fukuoka
Kurume Plant
* Consigned vehicles ** OEM vehicles

Overseas Offices
Beijing Office Representative Office in Europe
Room. 3801, Jing Guang Centre, Hujialou, Hermesstraat 8C, 1930, Zaventem,
Chaoyang District, Beijing, Belgium
100020, P.R. CHINA Phone: +32-(0)2-725-0973
Phone: +86-10-6597-4178 Facsimile: +32-(0)2-721-3174
Facsimile: +86-10-6597-4180

DAIHATSU MOTOR CO., LTD. 39 ANNUAL REPORT 2010