Suzuki 2004 Annual Report Download

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ANNUAL REPORT
2004

Table of contents

  • Page 1
    ANNUAL REPORT 2004

  • Page 2
    ... and development of our small and subcompact car sales channel, the Suzuki Arena. Meanwhile, in overseas markets, we introduced a number of new motorcycle models including the GSXR600, GSX-R750 and V-Strom(DL650) , and new All Terrain Vehicle (ATV) models including the Twin Peaks 700 4 4(LT-V700F...

  • Page 3
    ...of our business. Osamu Suzuki Chairman & CEO Hiroshi Tsuda President & COO PROFILE Suzuki Motor Corporation designs and manufactures passenger cars, commercial vehicles, motorcycles, All Terrain Vehicles (ATVs), outboard motors, and other products. The company continuously and vigorously promotes...

  • Page 4
    ... U.S. dollars (except per share amounts) SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Years ended March 31, 2004 and 2003 Net sales ...Net income ...Net income per share: Primary ...Fully diluted ...Cash dividends per share ...Shareholders' equity ...Total current assets ...Total assets...

  • Page 5
    ...2001 2002 2003 2004 Production in Japan is CBU. Overseas production is CKD units + components for overseas production. 2004 Net Sales By Business (Year ended March 31, 2004, millions of yen) 2004 Net Sales By Market (Year ended March 31, 2004, millions of yen) Other sales Motorcycle sales 57...

  • Page 6
    ...by the Swift - whose product competitiveness was boosted by the addition of a special edition together with a price review - and the Chevrolet Cruze, a model jointly developed with General Motors. Suzuki's growth from the previous year in the small and subcompact vehicle market stands in contrast to...

  • Page 7
    ... announced in May 2004 to manufacture the latest automobile with a diesel engine using technology provided based on a licensing contract with FiatOpel. Kosai Plant Passenger car assembling plant Iwata Plant Sport utility vehicle and commercial vehicle assembling plant Business performances at our...

  • Page 8
    ... introduction of the "type S" version for the 250cc scooter Sky Wave 250 equipped with extra stylish features, and the new ST250 model series introduced in December 2003. Let's G CHOINORI CHOINORI SS ST 250 SUZUKI MOTOR CORPORATION SKYWAVE 250 TYPE S (Export name:Burgman 250) 7 GSX1400

  • Page 9
    ...at Suzuki Manufacturing of America Corporation (SMAC) - our ATV plant in U.S.A. - which began in 2002, has moved into full swing. SMAC is well on its way to establishing itself as a new production base for the production and supply of large utility ATV models such as the Vinson 500 automatic 4 4 (LT...

  • Page 10
    MARINE AND POWER PRODUCTS Marine Products The number of units of outboard motors exported in fiscal year 2003 (April 2003 to March 2004) - combining CBU and KD units for Thai Suzuki Motor Co., Ltd. - increased to 102% of the previous year. Strong sales of large 4-stroke outboard motors DF200/225/250...

  • Page 11
    ... (improvement of yield, recycling), managing chemical substances and promoting green procurement. In the area of marketing and service, our efforts include the proper treatment of used products and components, as well as providing the useful information such as dismantling manuals that can be of...

  • Page 12
    ... Suzuki began selling passenger cars, made by GM-Daewoo Auto & Technology in Korea, at American Suzuki Motor Corporation (ASMC), followed by Suzuki Canada Inc. (SCI) in November 2003. By the end of March 2004, approximately 5,000 Verona (2.5 liter) and approx. 5,000 Forenza (2.0 liter) had been sold...

  • Page 13
    ...Manufacturing of America Corporation Georgia, U.S.A. Suzuki Canada Inc. Maruti Udyog Ltd. New Delhi, India Suzuki Motorcycles Pakistan Ltd. Karachi, Pakistan Pak Suzuki Motor Co., Ltd. Karachi, Pakistan P.T.Indomobil Suzuki International Jakarta, Indonesia Suzuki Philippines Inc. Manila, Philippines...

  • Page 14
    ... affiliates of 27companies. The main businesses are the manufacturing and marketing of motorcycles, automobiles, marine & power products, motorized wheel chairs, electro senior vehicles and houses, further developing the businesses of logistics and other services related to the respective operations...

  • Page 15
    ... MANAGEMENT POLICY ...FINANCIAL REVIEW ...FIVE-YEAR SUMMARY ...CONSOLIDATED FINANCIAL STATEMENTS OF 2004 CONSOLIDATED BALANCE SHEETS ...CONSOLIDATED STATEMENTS OF INCOME ...CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY ...CONSOLIDATED STATEMENTS OF CASH FLOWS ...NOTES TO CONSOLIDATED FINANCIAL...

  • Page 16
    ... - as well as push sales of our large-size models. In overseas markets, we will try to boost sales of small-size models in Asia and large-size models in the European and North American markets. In this way, we intend to establish a highly profitable motorcycle  16  SUZUKI MOTOR CORPORATION

  • Page 17
    ... the business potential of the synergies gained by our strategic alliances with the General Motors Group to reinforce the corporate foundation. Efforts will be taken to develop, in a speedy and effective manner, products that closely meet demands in each of the four major market regions in the world...

  • Page 18
    ...sales of mini vehicles fell, and as a result, domestic net sales dropped below those of the previous fiscal year. In overseas markets, we reinforced overseas production bases by increasing production at "Maruti Udyog Limited" in India and introducing a new model "Ignis" at "Magyar Suzuki Corporation...

  • Page 19
    (2) Selling, general and administrative expenses The Suzuki group has made positive efforts to widen our scope of technical development moving beyond the areas of current expertise. By offering competitive and original products which are in line with developments in technical innovation, we are ...

  • Page 20
    ... products, such as motorcycles, automobiles and outboard motors and adversely affect the business performances of the Suzuki group. The Suzuki group has business operations all over the world and our dependence on overseas manufacturing plants, especially in developing countries in the Asian region...

  • Page 21
    ... many countries and occurrences of unexpected events, such as natural disasters, diseases, wars, terrorism and labor strikes, etc., could possibly cause delays and bring a halt to the purchasing of materials and parts, manufacturing, sales and distribution of products, and provision of services. If...

  • Page 22
    ...from the year of 2002 in accordance with the revision of regulations of financial statements. Calculation of net income per share is made on the adjusted net income basis that bonuses paid to directors & corporate auditors and the payment of dividends to shareholders of preferred stocks are excluded...

  • Page 23
    CONSOLIDATED FINANCIAL STATEMENTS OF 2004 CONSOLIDATED BALANCE SHEETS As of March 31, 2004 and 2003 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Millions of yen Thousands of U.S. dollars 2004 2003 2004 ASSETS Current assets: Cash and time deposits(Note 10) ...Marketable securities (...

  • Page 24
    ... 579,442 Minority interests ...Shareholders' equity (Note 12): Common stock: Authorized-1,500,000,000 shares Issued, as of March 31, 2004-542,647,091 ...as of March 31, 2003-542,647,091 ...Additional ...4,334,463 210,691 (248,667) (80,794) 6,550,719 $14,927,709  24  SUZUKI MOTOR CORPORATION

  • Page 25
    ...2004 and 2003 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Millions of yen Thousands of U.S. dollars 2004 ¥2,198,986 1,610,013 588,972 493,832 95,140 2003 ¥2,015,309 1,489,406 525,903 451,699 74,204 2004 $20,806,004 15,233,358 5,572,645 4,672,464 900,181 Net sales ...Cost of sales...

  • Page 26
    ... OF SHAREHOLDERS' EQUITY Years ended March 31, 2004 and 2003 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 of March 31, 2002 Net...

  • Page 27
    ... 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, 2003 Net income ...Cash dividends ...Directors' and corporate auditors' bonuses ...Issue...

  • Page 28
    CONSOLIDATED STATEMENTS OF CASH FLOWS Years ended March 31, 2004 and 2003 Millions of yen Thousands of U.S. dollars SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES 2004 2003 ¥ 62,269 - 83,896 (5,118) (5,425) (7,405) 3,615 12,093 (10,218) 24,792 23,831 182,329 6,702 (3,684) (39,271) 146,...

  • Page 29
    ... of consolidated subsidiaries, their fiscal year end is December 31. American Suzuki Motor Corp. and other 10 companies within above-mentioned 50 companies, their accounts were consolidated based on their financial statements by the preliminary settlement as of March 31, 2004. The rest of 39...

  • Page 30
    ... exported to North American market, to prepare for any payment of compensation not covered by "Product Liability Insurance", the anticipated amount to be borne by the Company and its subsidiaries is calculated and provided on the basis of historical results. Therefore if lawsuits increase, this...

  • Page 31
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Assets and liabilities of the foreign subsidiaries and affiliates are translated into Japanese yen at the exchange rates prevailing at the balance sheet date. The shareholders' equity at the beginning of the year is translated into Japanese yen at the ...

  • Page 32
    ... and its subsidiaries. (m)Revenue recognition Sales of products are generally recognized in the accounts as delivery is made. (n)Amounts per share Primary net income per share is computed based on the weighted average number of shares issued during the respective years. Fully diluted net income per...

  • Page 33
    ... 31, 2004 and 2003 were as follows: Millions of yen Thousands of U.S. dollars 2004 Finished products ...Work in process ...Raw materials and others ...¥211,619 12,902 29,313 ¥253,835 2003 ¥215,489 22,349 31,871 ¥269,710 2004 $2,002,266 122,081 277,351 $2,401,700 SUZUKI MOTOR CORPORATION...

  • Page 34
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 4. Marketable securities and investments in securities (a) Marketable securities and investments in securities quoted at an exchange as of March 31, 2004 and 2003 Millions of yen Acquisition Cost 2004 Amounts for BS Valuation Those whose amount for BS ...

  • Page 35
    ... FINANCIAL STATEMENTS (b) Other securities sold during 2004 and 2003 Millions of yen Thousands of U.S. dollars 2004 Amounts sold ...Gains from sales of other securities ...Losses from sales of other securities ...(c) Major securities not revalued by the market ¥ 56,242 501 - 2003 ¥125...

  • Page 36
    NOTES TO CONSOLIDATED FINANCIAL STATEMENTS 5. Short-term bank loans and long-term debt Short-term bank loans as of March 31, 2004 and 2003 consisted of the following. The annual interest rates of short-term bank loans as of March 31, 2004 were 0.24 percent to 9.81 percent. Millions of yen Thousands...

  • Page 37
    ... The outstanding balance of this contract as of March 31, 2004 and 2003 was as follows: Millions of yen Thousands of U.S. dollars Commitment contract total ...Actual loan balance ...Variance ... 2004 ¥100,000 - 2003 - - - 2004 $946,163 - ¥100,000 $946,163 SUZUKI MOTOR CORPORATION  37 

  • Page 38
    ...$ 84,531 - 1,684 ¥10,618 ¥ 4,412 15,939 $ 100,470 Remarks:1) The amount of employees' contribution to Employees' Pension Fund is deducted. 2) The retirement benefit cost of subsidiaries where simplified methods are adopted is accounted for "a. Service cost".  38  SUZUKI MOTOR CORPORATION

  • Page 39
    ... 2004 0.23% - 4.39% 2003 3.00% - 4.39% : 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 amortization of prior service cost e. Number...

  • Page 40
    ... and development Costs Research and development costs included in Manufacturing cost and Selling, general and administrative expenses for the years ended March 31, 2004 and 2003 were as follows: Thousands of U.S. dollars Millions of yen 2004 Research and development costs ...¥75,786 2003 ¥60...

  • Page 41
    ... 197 ¥ 205 2004 $ 8,752 (6,252) 2,499 1,416 2,435 3,851 1,564 $ 1,668 Millions of yen Thousands of U.S. dollars 2004 ¥ 750 (592) 157 94 121 215 123 ¥ 90 2003 ¥1,041 (794) 247 118 192 310 185 ¥ 125 2004 $ 7,100 (5,608) 1,491 892 1,150 2,043 1,172 $ 851 SUZUKI MOTOR CORPORATION  41 

  • Page 42
    ... As a lessor Millions of yen 2004 Future lease revenues Due within one year ...Thereafter ...¥ 51 98 ¥ 150 2003 ¥ 65 160 ¥226 2004 $ 491 930 $1,421 12. Shareholders' equity The Commercial Code requires that at least 50% of the issue price of new shares be included in a company's stated...

  • Page 43
    ...95,140 1,577,709 87,858 ¥ 84,914 Elimination and 302,975 - ¥ - 2003 Motorcycle Net sales: Automobile ¥1,618,237 - 1,618,237 1,579,556 38,680 977,655 70,808 ¥ 61,078 Other ¥49,275 - 49,275 42,181 7,093 47,185 1,459 ¥ 1,600 2004 corporate assets Consolidated 295,066 2,015,309 - 2,015,309...

  • Page 44
    ... FINANCIAL STATEMENTS (b)Geographical segment Millions of yen 2004 Elimination and Japan Net sales: Outside customers ...Â¥1,055,969 Inter-area...473,093 1,529,062 Operating expenses ...1,461,336 Operating income ...Â¥ 67,725 Europe North America Asia Other areas*1 corporate assets...

  • Page 45
    ...year ended March 31, 2004 was approved by the ordinary general meeting of shareholders of the Company held on June 29, 2004: Millions of yen Thousands of U.S. dollars Year-end cash dividends ...Bonuses for directors and corporate auditors ... ¥2,680 200 ¥2,880 $25,360 1,892 $27,252 SUZUKI MOTOR...

  • Page 46
    ...consolidated balance sheets of Suzuki Motor Corporation and its subsidiaries as of March 31, 2004 and 2003, and the related consolidated statements of income, shareholders' equity, and cash flows for the years then ended, all expressed in Japanese Yen. These consolidated financial statements are the...

  • Page 47
    ...FINANCIAL STATEMENTS OF 2004 NON-CONSOLIDATED BALANCE SHEETS As of March 31, 2004 and 2003 Millions of yen Thousands of U.S. dollars SUZUKI MOTOR CORPORATION 2004 ASSETS Current assets: Cash and time deposits ...Marketable..., plant and equipment: Land ...Buildings and structures ...Machinery...

  • Page 48
    ...,219 17,410 93,629 283,848 285,093 159,643 728,585 Shareholders' equity Common stock: Authorized - 1,500,000,000 shares Issued, par value ¥50 per share as of March 31st, 2004 - 542,647,091 ...as of March 31st, 2003 - 542,647,091 ...Additional paid-in capital ...Retained earnings ...Net unrealized...

  • Page 49
    ... OF INCOME Years ended March 31, 2004 and 2003 SUZUKI MOTOR CORPORATION Millions of yen Thousands of U.S. dollars 2004 Net sales ...Cost of sales ...Gross profit ...¥1,392,688 1,065,170 327,518 2003 ¥1,411,418 1,085,451 325,967 2004 $13,177,112 10,078,255 3,098,856 Selling, general and...

  • Page 50
    ON THE COVER The GRAND VITARA XL-7 The 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 ...

  • Page 51
    300 TAKATSUKA, HAMAMATSU, JAPAN ANNUAL REPORT 2004 99999-E2062-204 Printed in Japan