Suzuki 2005 Annual Report Download - page 19

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SUZUKI MOTOR CORPORATION
Consolidated net sales for the Suzuki Group during the current fiscal year amounted to 2,365,571 million yen
(107.6% as against PFY). Operating income amounted to 107,542 million yen (113.0% as against PFY). Net
income amounted to 60,506 million yen (138.0% as against PFY). These results were due to increases in
exchange loss, R&D expenses and depreciations being absorbed by cost reduction and sales increase.
Factors which significantly influenced the consolidated statement of income are described as follows:
Note: PFY=Previous fiscal year
(a) Motorcycle operations
Total domestic demand of the motorcycle industry was stagnant, however the Company's net sales in the
domestic market slightly surpassed the previous fiscal year with the introduction of the new scooter "Let's 4" and
the new on-road sports model "DR-Z400SM". In the overseas market, sales surpassed those of the previous
fiscal year because the Company made efforts to expand sales of a large types of sports models such as
"GSF650", and All Terrain Vehicles such as "LT-A700X", and increased local production in Asia. As a result, the
net sales of the motorcycle operations reached 460,568 million yen (110.5% as against PFY) and operating
income increased to 38,151 million yen (113.4% as against PFY) through the absorption of exchange loss and
increased R&D expenses by cost reduction and sales increase.
(b) Automobile operations
In the domestic market, in addition to good sales of the mini vehicle "Wagon R", the Company introduced a
new mini vehicle "Alto" and a new subcompact passenger vehicle "Swift". Furthermore, efforts were made to
expand sales by the reinforcement of the "Suzuki Arena", the sales channel for small and subcompact vehicles.
As a result, the domestic net sales surpassed the previous fiscal year. Overseas sales surpassed the previous
fiscal year due to increased sales at overseas manufacturing companies such as "Maruti Udyog Limited" in
India and "PT Indomobile Suzuki International" in Indonesia etc, in addition to increased sales in the European
region. As a result, net sales of automobile operations amounted to 1,845,763 million yen (107.0% as against
PFY). Operating income increased to 60,140 million yen (114.7% as against PFY) by increased sales and cost
reduction despite the increase of R&D expenses and exchange loss.
(c) Other businesses
The net sales of other businesses amounted to 59,240 million yen (103.4% as against PFY) and operating
income increased to 9,251 million yen (102.2% as against PFY) due to an increase in sales.
(a) Japan
Net sales amounted to 1,619,887 million yen (105.9% as against PFY) and operating income decreased to
65,653 million yen (96.9% as against PFY) as the increase of R&D expenses and exchange loss could not be
absorbed with cost reduction.
(b) Europe
Net sales amounted to 414,328 million yen (110.3% as against PFY) however operating income decreased to
6,691 million yen (74.4% as against PFY) due to increased overhead costs and depreciations for the
introduction of the new subcompact passenger vehicle "Swift" at "Magyar Suzuki Corporation", our production
plant in Europe.
(c) North America
Net sales amounted to 303,716 million yen (102.6% as against PFY) and operating income was improved to
4,639 million yen (574.8% as against PFY) due to increased motorcycle sales and a lower fleet sales
percentage in automobile sales at "American Suzuki Motor Corporation".
(d) Asia
Net sales amounted to 500,062 million yen (107.6% as against PFY) due to increased sales at overseas
manufacturing companies such as "Maruti Udyog Limited" in India and "PT Indomobile Suzuki International" in
Indonesia and operating income increased to 37,281 million yen (149.4% as against PFY), due to sales
increase and cost reduction.
(e) Other areas
Net sales amounted to 26,698 million yen (109.7% as against PFY) and operating income to 1,464 million yen
(2) The operating results by geographical segmentation
(1) The operating results by business segmentation
1. Operating results
Financial review
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