Suzuki 2007 Annual Report Download

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ANNUAL REPORT
2007

Table of contents

  • Page 1
    ANNUAL REPORT 2007

  • Page 2
    ..., in order to develop a profitable motorcycle business, we will continue expanding sales of our scooters and large motorcycles in the domestic market, and in Europe and North America we will promote products that enhance a "Sporty, Youthful, and Unique" brand image derived from our racing activities...

  • Page 3
    ...14 CORPORATE DATA _____ 14 MEMBERS OF THE BOARD AND AUDITORS ____ 14 MAJOR OVERSEAS SUBSIDIARIES _____ 14 THE STATUS OF THE CORPORATE GROUP __ 15 FINANCIAL SECTION _____ 18 Head Office & Takatsuka Plant Headquarters, Engineering center and Motorcycle engines assembling plant 2 SUZUKI MOTOR...

  • Page 4
    FINANCIAL HIGHLIGHTS SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Millions of yen (except per share amounts) Thousands of U.S. dollars (except per share amounts) Years ended March 31, 2007 and 2006 Net sales ...Net income ...Net income per share: Primary ...Fully diluted ...Cash dividends...

  • Page 5
    ... of yen) 2007 Net Sales By Market (Year ended March 31, 2007, Millions of yen) Other 71,674 2.3% Motorcycle 588,177 18.6% Other 220,825 7.0% North America 471,114 14.9% Japan 973,501 30.8% Automobile 2,503,817 79.1% Europe 796,330 25.2% Asia 701,896 22.2% 4 SUZUKI MOTOR CORPORATION

  • Page 6
    ...previous year). This is the seventh consecutive year-on-year increase, and a new record high. Suzuki's domestic market share was 12.3%, and the fourth largest among the 12 domestic automotive makers. * Includes the Chevrolet Cruze and the Chevrolet MW WAGON R CERVO SUZUKI MOTOR CORPORATION 5

  • Page 7
    ... of 220,679 units sold in 2006. • The Carry achieved top place in sales in the truck segment for the 36th consecutive year. Kosai Plant Passenger car assembling plant Iwata Plant Sport utility vehicle and commercial vehicle assembling plant GRAND VITARA SX4 Sedan SWIFT 6 SUZUKI MOTOR...

  • Page 8
    ... Swift, Grand Vitara, and SX4, the new model places a greater emphasis on user friendliness. Suzuki's world strategic models are also taking an active role in motor sports. The Swift Super 1600 made it Junior (World) Rally Championship debut in August 2005 winning five races out of six in 2006 then...

  • Page 9
    ... ATVs) in overseas markets were 2,901 thousand units, 99.9% compared to the previous year, while total global sales, including Japan, were 3,065 thousand units, 100% compared to the previous year. The Japanese Market The number of motorcycles produced for the period from April 2006 to March 2007...

  • Page 10
    ... new models that meet demands for specific Asian markets in order to popularize our products in the market, and also strengthen our sales network to increase sales. Toyokawa Plant Motorcycles and outboard motors assembling plant B-KING GSX-R1000 BANDIT1250S (GSF1250AS) SUZUKI MOTOR CORPORATION...

  • Page 11
    ... racing, the MOTO GP, and world title events driving road-going GSX-R and RM/RM-Z series motorcycles that are available for general purchase. While our blue GSV-R bikes in MOTO GP and GSX-R1000 bikes at the Superbike World Championships are always competing for first place, team Suzuki Endurance...

  • Page 12
    ... 4-stroke models. Subsequently, emphasis will be placed on expanding the lineup, developing 4-stroke outboards with concern for conservation of the natural environment. DF6 Overseas Markets In terms of outboard motor exports in fiscal 2006, combining CBU and KD for Thai Suzuki, production was 116...

  • Page 13
    ...IN REVIEW OTHER TOPICS Environment As a general manufacturer of automobiles, motorcycles, outboard motors, etc., Suzuki addresses environmental conservation at all stages-from development to disposal. In environmentally-friendly products development, we make every effort to research and develop new...

  • Page 14
    ... global market at an appropriate time. Besides the partnership with GM, Suzuki has respective partnerships with other car manufacturers. For example, Suzuki supplies Mazda's all mini-cars in OEM, Suzuki also supplies multi-purpose-vehicle to Mitsubishi Motors in Indonesia, and Suzuki has cross-OEM...

  • Page 15
    ..., Poland American Suzuki Motor Corporation 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 Motorcycle India Private Limited Gurgaon Haryana Pak Suzuki Motor Co., Ltd. Karachi, Pakistan Suzuki...

  • Page 16
    ... corporate group The corporate group of the Company consists of subsidiaries of 139 companies and affiliates of 31. The main businesses are manufacturing and marketing of motorcycles, automobiles, marine & power products, motorized wheelchairs, electro senior vehicles and houses, further developing...

  • Page 17
    SUZUKI MOTOR CORPORATION  17 

  • Page 18
    ...32 CONSOLIDATED STATEMENTS OF CASH FLOWS ...33 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ...34 REPORT OF INDEPENDENT AUDITOR ...49 NON-CONSOLIDATED FINANCIAL STATEMENTS OF 2007 NON-CONSOLIDATED BALANCE SHEETS ...50 NON-CONSOLIDATED STATEMENTS OF INCOME ...52  18  SUZUKI MOTOR CORPORATION

  • Page 19
    ... to expand our business operations in the future. The Suzuki Group has a structure in which profits are highly dependent on overseas manufacturing plants. These are mainly located in developing countries, and are therefore subject to exchange rate fluctuations. We have plans to actively develop and...

  • Page 20
    ... as for diesel engine with Fiat Auto S.p.A. and for development of hybrid vehicle/fuel-cell vehicle with General Motors Corporation (GM) and so on. Although GM group's equity stake in the Company was lowered to 3.0% by the sale of the shares of the Company it had owned in March, 2006, constructive...

  • Page 21
    ..., and their board consists of five members including three persons of external corporate auditors in order to enhance the audit function. And the Company has audit department which audit on our domestic and overseas subsidiaries and affiliates, in addition to the internal audit group. Thus, along...

  • Page 22
    ..."Suzuki Corporate Ethics Rules", the Company has developed compliance system for employees including internal report system, and has educated them through various training and in-house seminars regarding compliance. And, in accordance with the "Rule of Internal Auditing", the audit department audits...

  • Page 23
    ... and Exchange Law", the Company can not specify respective amounts substantially and has described the total amount for those audits. (c) The Company paid the following remuneration to independent auditors other than (a). • Making out of comfort letter regarding bond issuance. SUZUKI MOTOR...

  • Page 24
    ... because reduction in profits of "P.T. Indomobile Suzuki International" could not be absorbed. (b) Automobile operations In domestic market, in addition to favorable sales of the subcompact passenger car "Swift", the Company strengthened product lineup introducing a new sports crossover vehicle, the...

  • Page 25
    .... Planned capital expenditure spending for the next fiscal year is 250,000 million yen, mainly from our own funds. 3. Significant accounting policies For information regarding significant accounting policies, please refer to the Notes to Consolidated Financial Statements. SUZUKI MOTOR CORPORATION...

  • Page 26
    ... price and cost fluctuations could damage our operating results in any market where the Suzuki Group is operating. (3) Foreign exchange fluctuation The Company exports motorcycles, automobiles, outboard motors and their parts from Japan to many countries in the world and our overseas manufacturing...

  • Page 27
    ...US$1, the prevailing exchange rate as of March 31, 2007. Calculation of net income per share from the year of 2003 to 2006 is made on the adjusted net income basis excluding the bonuses paid to directors and corporate auditors and the payment of dividends to shareholders of preferred stocks from net...

  • Page 28
    CONSOLIDATED FINANCIAL STATEMENTS OF 2007 CONSOLIDATED BALANCE SHEETS As of March 31, 2007 and 2006 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Millions of yen Thousands of U.S. dollars 2007 2006 2007 ASSETS Current assets: Cash and time deposits ...Marketable securities *NOTE 5 ...

  • Page 29
    ... FINANCIAL STATEMENTS OF 2007 Millions of yen Thousands of U.S. dollars 2007 LIABILITIES AND NET ASSETS Current liabilities: Trade notes and accounts payable ...Short-term bank loans *NOTE 6 ...Current portion of long-term debt *NOTE 6 ...Accrued income taxes ...Accrued expenses ...Other current...

  • Page 30
    ... adjustments ...Less treasury stock, at cost ...Total Shareholders' equity ...Contingent liabilities *NOTE 14 Total liabilities and shareholders' equity ... 2006 2007 120,210 129,192 573,516 38,285 (1,499) (242,934) 616,770 ¥ - ¥1,849,714 $ -  30  SUZUKI MOTOR CORPORATION

  • Page 31
    CONSOLIDATED FINANCIAL STATEMENTS OF 2007 CONSOLIDATED STATEMENTS OF INCOME Years ended March 31, 2007 and 2006 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Millions of yen Thousands of U.S. dollars 2007 ¥3,163,669 2,378,742 784,927 652,027 132,900 2006 ¥2,746,453 2,032,732 713,721...

  • Page 32
    ... STATEMENTS OF 2007 CONSOLIDATED STATEMENTS OF CHANGING NET ASSETS Years ended March 31, 2007 and 2006 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Thousands of shares of common stock Millions of yen Common stock Capital surplus Consolidated retained earnings Treasury stock at cost...

  • Page 33
    ... and redemption of bonds (1,028) Cash dividends paid ...(6,943) Purchases of treasury stock ...(19) Proceeds from sales of treasury stock ...32,085 Others ...29 Net cash used in and provided by financing activities 223,290 Effect of exchange rate change on cash and cash equivalents 1,700 Cash and...

  • Page 34
    ... subsidiaries, their fiscal year end is December 31. "American Suzuki Motor Corporation" and the other 11 companies within above-mentioned 54 companies, their accounts were consolidated based on their financial statements by the preliminary settlement as of March 31,2007. (b) Allowance for doubtful...

  • Page 35
    ... FINANCIAL STATEMENTS OF 2007 (f) Marketable securities, investment in securities The Company and its subsidiaries hold securities of financial institutions and of our suppliers. These are subject to the risk of price fluctuations and under certain market conditions, we may have to conduct a review...

  • Page 36
    ... bonds were converted into common stock, with an applicable adjustment for related interest expense and net of tax. Cash dividends per share are the amounts applicable to the respective periods including dividends to be paid after the end of the period. (p) Cash and cash equivalents All highly...

  • Page 37
    ...Methods of Interim Consolidated Financial Statements." (Accounting standard for Business Combinations, etc.) Effective from the fiscal year ending March 31, 2007, the Company and its subsidiaries adopted new accounting standards "Accounting Standard for Business Combinations (the Business Accounting...

  • Page 38
    ... investments in securities (a) Marketable securities and investments in securities quoted at an exchange as of March 31, 2007 and 2006 Millions of yen Acquisition Cost 2007 Amounts for BS Valuation Those whose amount for BS exceeds acquisition cost (1) Stocks ...(2) Bonds ...(3) Others ...Sub Total...

  • Page 39
    ...FINANCIAL STATEMENTS OF 2007 (b) Other securities sold during 2007 and 2006 Millions of yen Thousands of U.S. dollars 2007 Amounts sold ...Gains from sales of the other securities ...Losses from sales of the other securities ...(c) Major securities not revalued by the market ¥76,700 507 117 2006...

  • Page 40
    ... of holders at the conversion price of ¥3,054 per share. If the outstanding convertible bonds were fully converted as of March 31, 2007, 64,076,413 additional shares of common stock would be issued. As is customary in Japan, both short-term and long-term bank loans are subject to general agreements...

  • Page 41
    CONSOLIDATED FINANCIAL STATEMENTS OF 2007 The aggregate annual maturities of long-term debt outstanding as of March 31, 2007 were as follows: Millions of yen Thousands of U.S. dollars Year ending March 31 2008 ...2009 ...2010 ...2011 ...Thereafter ... ¥ 1,088 7,375 47,358 10,948 172,625 $ 9,...

  • Page 42
    ... basis b. Discount rate : 2007 2.00% 2006 2.00% : 2007 0.23% - 1.90% 2006 0.23% - 1.50% : 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...

  • Page 43
    ... Research and development costs included in selling, general and administrative expenses, for the years ended March 31, 2007 and 2006 were as follows: Thousands of U.S. dollars Millions of yen 2007 Research and development costs ...¥92,141 2006 ¥89,917 2007 $780,531 SUZUKI MOTOR CORPORATION...

  • Page 44
    ... lessee, as of March 31, 2007 and 2006 were as follows: As a lessee (1) Amounts equivalent to acquisition costs, accumulated depreciation and net balance as of March 31, 2007 Acquisition costs ...Accumulated depreciation...Net balance ...(2) Future lease payments Due within one year ...Thereafter...

  • Page 45
    ...18 ¥39 2006 ¥53 36 ¥90 2007 $174 156 $330 NOTE 13: Net assets The Companies Act (Kaisha-hou) 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 as stated capital is determined by resolution of the board of directors...

  • Page 46
    ...FINANCIAL STATEMENTS OF 2007 NOTE 15: Segment Information (a) Business segment Millions of yen 2007 Motorcycle Net sales...corporate assets Consolidated 3,163,669 - 3,163,669 3,030,769 132,900 2,321,441 149,910 796 ¥ 167,677 Elimination and 425,188 - - ¥ - 2006 Motorcycle Net sales: Automobile...

  • Page 47
    CONSOLIDATED FINANCIAL STATEMENTS OF 2007 (b) Geographical segment Millions of yen 2007 Elimination and Japan Net sales: Outside customers ...Inter-area ...Operating expenses ...Operating income ...Assets ... Europe North America Asia Other areas*1 corporate assets Consolidated ¥1,343,369 ¥...

  • Page 48
    CONSOLIDATED FINANCIAL STATEMENTS OF 2007 (c) Overseas sales Millions of yen 2007 Europe North America Asia Other areas*2 Consolidated Overseas sales ...¥796,330 ¥471,114 ¥701,896 ¥220,825 ¥2,190,168 Consolidated net sales ...3,163,669 Ratio of overseas sales to consolidated net sales ...25...

  • Page 49
    ... Suzuki Motor Corporation and its subsidiaries as of March 31, 2007 and 2006, 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 responsibility of the Company...

  • Page 50
    NON-CONSOLIDATED FINANCIAL STATEMENTS OF 2007 NON-CONSOLIDATED BALANCE SHEETS As of March 31, 2007 and 2006 Millions of yen Thousands of U.S. dollars SUZUKI MOTOR CORPORATION 2007 ASSETS Current assets: Cash and time deposits ...Marketable securities ...Receivables: Trade notes and accounts ......

  • Page 51
    NON-CONSOLIDATED FINANCIAL STATEMENTS OF 2006 Millions of yen Thousands of U.S. dollars 2007 LIABILITIES AND NET ASSETS Current liabilities: Short-term bank loans ...Payables: Trade notes and accounts ...Subsidiaries and affiliates ...Accrued expenses ...Accrued income taxes ...Other current ...

  • Page 52
    ... FINANCIAL STATEMENTS OF 2007 NON-CONSOLIDATED STATEMENTS OF INCOME Years ended March 31, 2007 and 2006 SUZUKI MOTOR CORPORATION Millions of yen Thousands of U.S. dollars 2007 Net sales ...Cost of sales ...Gross profit ...¥1,939,806 1,542,814 396,992 2006 ¥1,690,169 1,307,129 383,039 2007...

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  • Page 55
    ANNUAL REPORT 2007 99999-E2062-207 Printed in Japan