Suzuki 2004 Annual Report Download - page 18

SUZUKI MOTOR CORPORATION
(4) Structure and administration of risk control system
In consideration of the importance of risk control, the Company has laid out a "Risk Control Procedure" as part
of the "Suzuki Corporate Ethics Rules". In this procedure, an "Action Standard" is provided to stop preventable
risks such as malpractices or illegal acts by employees. The "Risk Control Procedure" also determines
responses to emergencies, such as natural disasters and terrorism, which the company is powerless to prevent.
Whenever the "Corporate Ethics Committee" recognizes risks that could cause urgent and serious damages
to the Company's management and business operations, the committee immediately sets up a "Risk Control
Headquarter". Chairman & CEO of the Company will lead this committee and with President & COO serving as
deputy leader, to form an organization that will decide on the measures to be taken against the occurred risk, in
accordance with the "Risk Control Procedure". The "Risk Control Headquarter" organizes discussions to decide
policies and measures to be taken and can give instructions to the appropriate divisions and departments.
These divisions and departments are then able to communicate with each other to resolve any issues at hand.
(5) Remuneration to directors
Remuneration paid to directors and corporate auditors is as follows:
(Number of payee:persons, Amount:million yen)

18

(6) Remuneration to independent accountants
The remuneration amount regarding audit certificates, based on audit agreement, is 37 million yen.
Financial review
1. Operating results
Consolidated net sales for the Suzuki group during the current fiscal year amounted to 2,198,986 million yen
(109.1% as against PFY). Operating income amounted to 95,140 million yen (128.2% as against PFY). Net
income amounted to 43,835 million yen (141.3% as against PFY). These results were due to increases in
overhead costs and R&D expenses being absorbed by cost reduction and foreign exchange gains.
Note: PFY=Previous Fiscal Year
(1) Sales
Consolidated net sales during the current fiscal year were 2,198,986 million yen. Sales in all of the business
segments, such as motorcycle, automobile and other businesses, exceeded those of the previous year.
In motorcycle operations, in the domestic market, net sales were below those of the previous fiscal year due
to a decrease in demand for large models. In overseas markets, stable sales of large sports models together
with an increase of local production in Asia helped net sales surpass those of the previous year. As a result, net
sales of motorcycle operations reached 416,855 million yen (119.9% as against PFY).
In automobile operations, in the domestic market, in a tough market, although net sales of small and
subcompact vehicles surpassed those of the previous year, net 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" in Hungary. As a result, net sales of automobile operations
surpassed the previous year, amounting to 1,724,834 million yen (106.6% as against PFY).
Net sales of other businesses amounted to 57,296 million yen (116.3% as against PFY).
Directors Corporate Auditors Total
Number Amount Number Amount Number Amount
of payee of payee of payee
Remuneration based on resolution
of shareholders' meeting 36 491 5 28 41 520
Bonus based on appropriation
of retained earnings 27 182 5 18 32 200
Retirement bonus based on resolution
of shareholders' meeting 11 410 - - 11 410
Total 1,083 46 1,130