Suzuki 2003 Annual Report Download - page 16

SUZUKI MOTOR CORPORATION
Management policy
1. Business operations basic policy
Ever since establishment, the Suzuki group has maintained a basic corporate policy of making "value-packed
products" to give our customers satisfaction. The opening paragraph of our company's mission statement promises
that, "we will develop products of superior value by focusing on the customer." Of course, the value of a product varies
with the times as well as in different countries and lifestyles. By keeping on top of the dynamic changes that occur over
time, Suzuki strives to create products of real value, products that can always win our customers' approval.
Suzuki is committed to making positive efforts in the production of small and subcompact vehicles that can fulfill our
customers' demands. Under our "Small Cars for a Big Future" program, Suzuki is working to ensure our operations run
in an efficient, well-coordinated and well-balanced manner.
2. Profit sharing basic policy
Suzuki's basic profit sharing policy is primarily focused on maintaining a continuous and stable payout of
dividends. At the same time, however, we are also looking at how our dividend payout ratio can be further
stable and how internal reserves can be improved as a basis for enhancing our corporate structure to allow us
to expand our business in the future.
Dividends for the current fiscal year are scheduled to be 8.00 yen per share as annual dividends (including an
interim dividend of 4.00 yen per share), in addition to which a special dividend of 1.00 yen per share is to be
paid to reflect our steady operating performance, and to express appreciation for our shareholders' support.
Therefore, total dividends will be 9.00 yen per share.
As a result, the dividend payout ratio for the current fiscal year will be 25.2%, and the dividend rate of
stockholders' equity 1.0%.
3. Perspectives and policy for lowering investment unit of shares
Suzuki recognizes improvement in share liquidity and increase of individual shareholders as significant
issues. A decision on whether to lower the investment unit of our shares will be made after a thorough
investigation of a number of factors including cost and effect, in consideration of the current stock price and
market demand.
4. Medium-term management strategy
A new business target was put in place in May last year in order for the Suzuki group to survive in a drastically
changing and tough business environment. Under the "Suzuki medium-term 3-year plan (April 2002 - March
2005)" every member of the company has been working together to boost innovation in every area of our
business, including development of competitive products, establishment of a strong sales and distribution
system together with a 30% reduction in costs.
5. Outstanding issues
The effects of deflation in the domestic market have led to a continuation of a slump in demand in all business
environments and as a result, competition for sales has been further intensifying both in the motorcycle and the
automobile industries.
In overseas markets, the Iraqi problem and the damage of the SARS virus in addition to the prolonged
worldwide recession has led to bleak business prospects, particularly in developed countries.
In order to get through such difficult circumstances, the company has come up with a strategy for the fiscal year
2003 and selected the following motto to represent our basic policy: "In order to survive, let us stop acting in a
self-styled manner and get back to basics."
By which we mean we intend to make positive efforts to strengthen our management structure and business
practices by closely reviewing the work we have been carrying out over the years in each field and seek
improvements by incorporating this spirit of getting back to the basics.
In 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 strengthening the product
development of our All Terrain Vehicle (ATV) models, etc.
Furthermore, we will seek to further utilize complimentary managerial resources together with our business
partner Kawasaki Heavy Industries, Ltd. to improve efficiency and cooperate closely to create a highly profitable
operation.
For our automobile operations, efforts will be made in the domestic market to increase sales of small/
subcompact automobiles by enhancing and improving our sales network, in particular upgrading the quality of
the "Suzuki Arena," our sales channel for small and subcompact automobiles, along with work on expanding

16
