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ANNUAL REPORT
2003

Table of contents

  • Page 1
    ANNUAL REPORT 2003

  • Page 2
    ... of our lineup and sales expansion of our large motorcycles in the European, North American and Japanese markets, the introduction of a common model for the Asian market locally produced in the Asian region, the promotion of cost-reduction activities and the strengthening of product development for...

  • Page 3
    ... & COO PROFILE Suzuki Motor Corporation designs and manufactures passenger cars, commercial vehicles, motorcycles, All Terrain Vehicles (ATVs), outboard motors, generators, general purpose engines and other products. The company continuously and vigorously promotes technical cooperation through...

  • Page 4
    ... U.S. dollars (except per share amounts) SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Years ended March 31, 2003 and 2002 Net sales ...Net income ...Net income per share: Primary ...Fully diluted ...Cash dividends per share ...Shareholders' equity ...Total current assets ...Total assets...

  • Page 5
    ... March 31, 2003, millions of yen) Other sales Motorcycle sales 49,275 2.4% 347,797 17.3% Other Sales Sales in Asia 349,532 17% Sales in Japan 854,269 42% 99,741 5% Automobile sales 1,618,237 80.3% 354,234 18% Sales in Europe 357,532 18% Sales in North America  4 SUZUKI MOTOR CORPORATION

  • Page 6
    ... the GM's Chevrolet TrailBlazer began, GRAND ESCUDO which strengthened our product (Export name: GRAND VITARA XL-7) lineup. ESCUDO (Export name: GRAND VITARA) AERIO (Export name: LIANA) SUZUKI MOTOR CORPORATION AERIO (Export name: LIANA)  5 WAGON R+ (manufactured at Magyar Suzuki Corp. in...

  • Page 7
    ... by General Motors for assuming responsibility of looking after the operations of rebuilding Daewoo Motor Company in Korea. As for our overseas production operations, Suzuki acquired majority shares in Maruti Udyog Limited in India in May 2002 and in P.T. Indomobil Suzuki International in Indonesia...

  • Page 8
    ... can be attributed to two factors in the scooter category (13,000 units, 134% of the previous year): The continued popularity of the SKYWAVE 250 and 400, and the introduction of the SKYWAVE 650. Toyokawa Plant Motorcycles and outboard motors assembling plant The low price of the Let's II Standard...

  • Page 9
    ... Ozark 250 (LT-F250). To enhance ATV product lineup in 2003, a new sport model QuadSport Z250 (LT-Z250) was introduced. And in order to heighten the cost competitiveness, production of the popular Eiger 400 series began in May 2002 at Suzuki Manufacturing of America Corporation (SMAC), our ATV plant...

  • Page 10
    ... the V6 models DF250, DF225 and DF200. Suzuki outboard motors provide power for a wide range of boats Power Products Export of power products such as generators and general purpose engines during fiscal year 2002 (April 2002 to March 2003) dropped to 90% of the previous year in the number of units...

  • Page 11
    ...-per-liter fuel consumption. In July 2002, Suzuki created the first mini-vehicleuse direct-injection turbo engine and conducted test runs on public roads. As for our manufacturing operations, in March 2003 we installed wind power generation equipment as the start of our research into utilization of...

  • Page 12
    ... GMDAT will be sold under the Suzuki brand through Suzuki's North American sales network, from 2004 model year. * Also in February 2003, Suzuki's Arena sales channel in Japan began offering the Chevrolet TrailBlazer, which is produced by GM in North America. Furthermore, basic agreement was reached...

  • Page 13
    ... Kingdom Suzuki Motor Poland Ltd. Warszawa, Poland American Suzuki Motor Corp. California, U.S.A. Suzuki Manufacturing of America Corporation Georgia, U.S.A. Suzuki Canada Inc. Ontario, Canada Maruti Udyog Ltd. New Delhi, India Suzuki Motorcycles Pakistan Ltd. Karachi, Pakistan Pak Suzuki Motor Co...

  • Page 14
    ... subsidiaries) Suzuki Motorcycle Sales (Higashi Nihon) Inc. Suzuki Motor GmbH Deutschland and other 5 companies (Companies an equity method is applied to Suzuki Motor De Mexico and 3 company ) Manufacturing & distribution companies: (Consolidated subsidiaries) Magyar Suzuki Corp. Maruti Udyog Ltd...

  • Page 15
    ... STATEMENTS OF CASH FLOWS ...NOTES TO CONSOLIDATED FINANCIAL STATEMENTS...REPORT OF INDEPENDENT PUBLIC ACCOUNTANTS ...NON-CONSOLIDATED FINANCIAL STATEMENTS OF 2003 NON-CONSOLIDATED BALANCE SHEETS ...NON-CONSOLIDATED STATEMENTS OF INCOME ...16 17 19 20 22 23 25 26 42 43 45 SUZUKI MOTOR CORPORATION...

  • Page 16
    ... our motorcycle operations, Suzuki will push ahead with bolstering and expanding sales of large models in the European, North American and Japanese markets, the introduction of a standardized model for local production in various regions in Asia, the promotion of cost reduction activities as well as...

  • Page 17
    ... Fuji Heavy Industry Ltd., and each company in the General Motors Corporation group to reinforce the corporate foundation. Efforts will be taken to develop, in a speedy and effective manner, products that closely suit each of the four central markets in the world, and to introduce them in a timely...

  • Page 18
    ... used for repaying short-term loans and for acquisition of treasury stock. As a result, the remaining balance of cash and cash equivalents at the end of the current fiscal year amounted to 238,743 million yen (increased by 15,726 million yen from the end of PFY).  18  SUZUKI MOTOR CORPORATION

  • Page 19
    ... on March 31, 2003. The treasury stock indicated on the column of non-consolidated current assets up to the year of 2001 is listed on the column of shareholders' equity from the year of 2002 in accordance with the revision of regulations of financial statements. SUZUKI MOTOR CORPORATION  19 

  • Page 20
    ... BALANCE SHEETS As of March 31, 2003 and 2002 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Millions of yen Thousands of U.S. dollars 2003 2002 2003 ASSETS Current assets: Cash and time deposits(Note 8) ...Marketable securities (Note 4 and 8) ...Receivables (Note 5) : Trade...

  • Page 21
    ... 2003 LIABILITIES AND SHAREHOLDERS' EQUITY Current liabilities: Trade notes and accounts payable ...Short-term bank loans (Note 5) ...Current portion of long-term debt (Note 5) ...Accrued income taxes ...Accrued expenses ...Other current liabilities ...Total current liabilities ... 2002 2003...

  • Page 22
    ... Net income per share (Note 2): Primary ...Fully diluted ...Cash dividends per share ... ¥ 57.29 55.57 9.00 ¥ 41.40 41.16 8.50 $ 0.476 0.462 0.074 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements.  22  SUZUKI MOTOR CORPORATION

  • Page 23
    CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY Years ended March 31, 2003 and 2002 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Thousands of shares of common stock Millions of yen Common stock Additional paid-in capital Consolidated retained earnings Treasury stock at cost Balance as ...

  • Page 24
    ... STATEMENTS OF SHAREHOLDERS' EQUITY Thousands of shares of common stock Thousands of U.S. dollars Common stock Additional paid-in capital Consolidated retained earnings Treasury stock at cost Balance as of March 31, 2002 Net income ...Cash dividends ...Directors' and corporate auditors' bonuses...

  • Page 25
    CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended March 31, 2003 and 2002 Millions of yen Thousands of U.S. dollars SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES 2003 2002 2003 Cash Flows from operating activities Income before income taxes etc...Â¥ 62,269 Depreciation and ...

  • Page 26
    ... amounts. 2. Summary of significant accounting policies (a)Principles of consolidation The consolidated financial statements for the years ended March 31, 2003 and 2002, include the accounts of the Company and its significant subsidiaries and the number of consolidated subsidiaries are 144 and 128...

  • Page 27
    ... or market value, cost being determined principally by the periodic average method. (f)Property, plant and equipment Property, plant and equipment are stated at cost. Depreciation is principally computed by the declining-balance method based on estimated useful lives of the assets (mainly 3-75 years...

  • Page 28
    ... average remaining service years of the employees. In order to allow for payment of directors' retirement bonus, the amount payable accrued at the balance sheet date is appropriated based on the retirement bonus rule for directors. (Accounting change) Suzuki Employee Pension Fund Plan has had...

  • Page 29
    ... guide line No. 4) have been applied. Prior to adopting the new statement, net income per share was calculated based on the net income shown on the Income Statement. The net income per share calculation excluded bonuses to directors and corporate auditors, since under the Japanese Commercial Code...

  • Page 30
    ... cost (1) Stocks ...(2) Bonds ...(3) Others ...Sub Total Total $217,079 109,814 - $326,894 $ 16,343 207,986 69 $224,400 $551,294 $325,375 110,003 - $435,378 $ 15,377 205,697 55 $221,130 $656,508 $108,295 188 - $108,484 (966) (2,289) (14) $ (3,269) $105,214 $  30  SUZUKI MOTOR CORPORATION

  • Page 31
    ... stock ...(Stocks traded over the counter are excluded.) Bonds ...¥54,953 30,094 4,775 2002 ¥40,068 11,842 2,219 2003 $457,181 250,367 39,729 (d) The amounts to be redeemed after the closing date of securities with maturities among other securities Millions of yen 2003 Within one year More than...

  • Page 32
    ... in the applicable agreement. The 2.1 percent convertible bonds were convertible into common stock at the options of holders at the conversion price of ¥605.1 per share, after giving effect to the new shares issued to General Motors of Canada Limited on January 18, 2001. The zero coupon convertible...

  • Page 33
    ...106 314,790 $523,697 Assets pledged as collateral as of March 31, 2003: Millions of yen Thousands of U.S. dollars Notes and accounts receivable ...Inventories ...Property, plant and equipment ... ¥ 1,215 1,837 12,122 ¥15,175 $ 10,115 15,285 100,851 $126,252 SUZUKI MOTOR CORPORATION  33 

  • Page 34
    ... component as disappearing from the Company's balance sheet. The expected returning amount appropriated as of the end of current fiscal year is 57,410 million yen. (c) Items related to retirement benefit cost a. Service cost b. Interest cost c. Assumed return on investment d. Amortized amount of...

  • Page 35
    ... b. Discount rate : 2003 2.50% 2002 2.50% : 2003 3.00% - 4.39% 2002 4.00% - 4.80% : Mainly 15 years To be amortized by straight line method with the employees' average remaining service years at the time when the difference was caused. c. Assumed return of investment ratio d. Number of years for...

  • Page 36
    ...Research and development Costs Research and development costs included in Manufacturing cost and Selling, general and administrative expenses for the years ended March 31, 2003 and 2002 were as follows: Thousands of U.S. dollars Millions of yen 2003 Research and development costs ...Â¥60,443 2002...

  • Page 37
    ... 206 ¥ 195 2003 $10,192 (7,358) 2,833 1,473 2,697 4,171 1,645 $ 1,706 Millions of yen Thousands of U.S. dollars 2003 ¥1,041 (794) 247 118 192 310 185 ¥ 125 2002 ¥ 915 (680) 235 164 181 345 193 ¥ 143 2003 $ 8,666 (6,608) 2,057 984 1,598 2,583 1,546 $ 1,040 SUZUKI MOTOR CORPORATION  37...

  • Page 38
    ... Future lease revenues Due within one year ...Thereafter ...¥ 65 160 ¥ 226 2002 ¥ 32 26 ¥ 59 2003 $ 544 1,336 $1,881 11. Shareholders' equity The Commercial Code requires that at least 50% of the issue price of new shares be included in a company's stated capital. The portion to be recorded...

  • Page 39
    ...501 Elimination and 295,066 - ¥ - 2002 Motorcycle Net sales: Automobile ¥1,311,296 - 1,311,296 1,283,195 28,101 798,765 62,039 ¥ 66,825 Other ¥44,487 - 44,487 39,940 4,546 45,784 1,770 ¥ 1,033 2003 corporate ...141,071 321,805 8,133,573 589,091 $ 508,139 SUZUKI MOTOR CORPORATION  39 

  • Page 40
    ... FINANCIAL STATEMENTS (b)Geographical segment Millions of yen 2003 Elimination and Japan Net sales: Outside customers ...Â¥1,125,144 Inter-area...415,479 1,540,623 Operating expenses ...1,473,383 Operating income ...Â¥ 66,240 Europe North America Asia Other areas*1 corporate assets...

  • Page 41
    ...year ended March 31, 2003 was approved by the ordinary general meeting of shareholders of the Company held on June 27, 2003: Millions of yen Thousands of U.S. dollars Year-end cash dividends ...Bonuses for directors and corporate auditors ... ¥2,682 200 ¥2,882 $22,313 1,663 $23,977 SUZUKI MOTOR...

  • Page 42
    ... OF INDEPENDENT PUBLIC ACCOUNTANTS To the Board of Directors and Shareholders of Suzuki Motor Corporation We have audited the accompanying consolidated balance sheets of Suzuki Motor Corporation and its subsidiaries as of March 31, 2003 and 2002, and the related consolidated statements of income...

  • Page 43
    NON-CONSOLIDATED FINANCIAL STATEMENTS OF 2003 NON-CONSOLIDATED BALANCE SHEETS As of March 31st, 2003 and 2002 Millions of yen Thousands of U.S. dollars SUZUKI MOTOR CORPORATION 2003 ASSETS Current assets: Cash and time deposits ...Marketable securities ...Receivables: Trade notes and accounts ...

  • Page 44
    ... AND SHAREHOLDERS' EQUITY Current liabilities: Short-term bank loans ...Current portion of long-term debt ...Payables: Trade notes and accounts ...Subsidiaries and affiliates ...Accrued expenses ...Accrued income taxes ...Other current liabilities ...Total current liabilities 2002 2003 ¥ 32...

  • Page 45
    ... OF INCOME Years ended March 31st, 2003 and 2002 SUZUKI MOTOR CORPORATION Millions of yen Thousands of U.S. dollars 2003 Net sales ...Cost of sales ...Gross profit ...¥1,411,418 1,085,451 325,967 2002 ¥1,320,218 1,026,515 293,703 2003 $11,742,252 9,030,378 2,711,873 Selling, general and...

  • Page 46
    ... GRAND VITARA XL-7 is Suzuki's flagship sport utility vehicle. With a 2.7 litre, fuel-injected V6 engine and the Drive Select 4X4 system, it has a real 4X4 capability. Yet it's also ultimate in family transport thanks to seven seats, an abundance of flexible space and outstanding standard equipment...

  • Page 47
    300 TAKATSUKA, HAMAMATSU, JAPAN SUZUKI SUPPORTS PACIFIC FLORA 2004 ANNUAL REPORT 2003 99999-E2062-203 Printed in Japan