Suzuki 2007 Annual Report Download - page 19

SUZUKI MOTOR CORPORATION
1. Business operations basic policy
Ever since establishment, the Suzuki Group has maintained a basic 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 quality by focusing on the customer”. Of course, the value of a product varies with the times as well
as the differences between countries and in lifestyles. By keeping on top of the dynamic changes occurring in the
marketplace, we strive to create products of real value, products that are always designed to win our customers’
approval.
We commits itself to make efforts to promote the “production of mini, small and subcompact vehicles” and the
“development of environmentally benign products” needed by customers, and to be small, less, light, short and beautiful
on every side of organization, facilities, parts, environment and so on as well as production, with the slogan, “Small Cars
for a Big Future”, and has been working for the efficient, well-knit and healthy management.
2. Profit sharing basic policy
The Company’s basic profit sharing policy is focused on maintaining a continuous and stable payout of dividends. At
the same time however, from a middle- and long-term perspective, we are always looking at how to improve our
performance, how to increase the dividend payout ratio and how internal reserves can be improved as a basis for
enhancing our corporate structure to allow us 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 increase our investment in these overseas manufacturing plants. To achieve stable growth, we
need to further enhance our corporate structure and prepare for unforeseen circumstances.
Under those circumstances, we appreciate your investment, and with the achievement of consolidated sales 3,000
billion yen, we have paid 14.00 yen per share as common dividends (including interim dividends of 6.00 yen) for the
current fiscal year.
As for next fiscal year, the annual dividend is scheduled to be 14.00 yen per share (including interim dividend of 7.00
yen).
Note: “the Company” = Suzuki Motor Corporation
3. Current status of medium-term management strategy
“Suzuki medium term 5-year plan (Apr.2005 - Mar.2010)” was established in May, 2005 which set consolidated sales
target of 3,000 billion yen and consolidated ordinary income target of 150 billion yen, with investment of 1,000 billion yen
by the Company and its group in plant and equipment in order for the Suzuki Group to survive and achieve more
development in tough business environments.
The Suzuki Group has been trying to achieve the above numerical target, as early as possible by the end of March
2010. As a result, we have already achieved the consolidated sales of 3,000 billion yen in this fiscal year, ahead of the
original plan, owing to good sales of automobiles in overseas markets, etc. Thus, we have revised up our targets for the
remaining 3 years, after updating main measures.
We will go forward laying groundwork for revenue base as the basic policy of coming 3 years by putting priority on
investment on R&D and facilities and development of human resources to achieve growing up. With this policy, every
member of the Suzuki Group intend to strive continuously to achieve targets of consolidated sales over 3,500 billion yen
and consolidated ordinary income over 175 billion yen by the end of March 2010.
MANAGEMENT POLICY
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Revised Original
mid-term management strategy mid-term management strategy
(Apr.27, ’07) (May 11, ’05)
Consolidated net sales Over 3,500 billion yen Over 3,000 billion yen
Consolidated ordinary income Over 175 billion yen Over 150 billion yen
(Ordinary income to sales) Over 5 % Over 5 %
Exchange Rate 1 US dollar = 105 yen 1 US dollar = 100 yen
(FY2008 and FY2009) 1 Euro = 130 yen 1 Euro = 130 yen
Production units Motorcycle Over 4,400 thousands Over 4,400 thousands
Automobile Over 3,000 thousands Over 2,700 thousands
5 year total investment on equipments 1,000 billion yen 1,000 billion yen
(FY2005 – FY2009)