Suzuki 2008 Annual Report Download

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ANNUAL REPORT
2008

Table of contents

  • Page 1
    ANNUAL REPORT 2008

  • Page 2
    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 technical cooperation through numerous joint ventures overseas, and its main ...

  • Page 3
    ..., 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 4
    ... aspects of production, organization, facilities, parts, environment, etc. in order to promote a highly efficient, well-knit, and healthy business operation. Also, our executive officers and employees will strictly adhere to all statutes, social norms, and in-house rules, etc., act fairly and with...

  • Page 5
    ... 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, 2008 and 2007 Net sales ...Net income ...Net income per share: Primary ...Fully diluted ...Cash dividends per share...Shareholders...

  • Page 6
    ... 605 621 549 2,970 3,138 3,183 3,393 Production in overseas Production in Japan Total 2008 Net Sales By Business Other 76,559 2.2% 2008 Net Sales By Market Other America 415,713 11.9% 296,958 North 8.5% Motorcycle 591,967 16.9% Japan 981,383 28.0% Europe Automobile 2,833,892 80.9% 920,459 26...

  • Page 7
    ...trend. SWIFT • The new Palette mini wagon, which offers greater space, capacity, and convenient entry/ exit, was introduced in January 2008 to strengthen the mini vehicle lineup. Since its introduction, sales have exceeded our sales plan. 2. Suzuki Sales Status Suzuki's total domestic sales for...

  • Page 8
    ... second races and continue to gain experience and refine the SX4 WRC car in pursuit of even better results. In line with the Suzuki goal of offering products that promote active lifestyles, we are using our "Way of Life!" slogan to communicate our overseas corporate philosophy. After fiscal 2008, we...

  • Page 9
    Year in Review GRAND VITARA SPLASH (manufactured at Magyar Suzuki Corporation in Hungary) SWIFT SX4 JIMNY APV (manufactured at P.T. Indomobil Suzuki International in Indonesia) 8 SUZUKI MOTOR CORPORATION

  • Page 10
    Year in Review Motorcycles Suzuki's Worldwide Manufacturing and Sales Total overseas motorcycle production (including ATVs) in fiscal 2007 was 2,843 thousand units, 111% compared to the previous year. Worldwide production, including production in Japan, increased to 3,393 thousand units, 107% ...

  • Page 11
    ... problem, sales in North America declined to 123 thousand units (86% compared to the previous year) and 173 thousand units (98% compared to the previous year) in Europe. Wholesale figures for the overall motorcycle market in the six ASEAN nations (Indonesia, Thailand, Vietnam, Philippines, Malaysia...

  • Page 12
    ... activities 2007, which play an important role in brand positioning, we have done well in demonstrating the superiority of the Suzuki brand and its products. Competing under the slogan "Own the Racetrack" we performed outstandingly in MotoGP and world title events driving road-going motorcycles...

  • Page 13
    ... to Europe. The current Suzuki 4-stroke outboard motor lineup ranges from the lowest horsepower model DF2.5 (1.8kw, 2.5 horsepower) to the highest horsepower model, the DF300 (220.7kw, 300 horsepower). Suzuki introduced new models for the 2009 season, the DF70/80/90, at the Miami International Boat...

  • Page 14
    ... products, we produced approximately 110,000 diesel engines, which are in high demand particularly in Europe, at Suzuki Power Train India (SPIL) in fiscal 2007. Diesel engines manufactured at SPIL are utilized not only Swift in India, but also in our Swift Diesel automobiles manufactured in Hungary...

  • Page 15
    ... other. SX4 (Manufactured at Magyar Suzuki in Hungary and supplied to Fiat) SPLASH (Manufactured at Magyar Suzuki in Hungary and supplied to GM under Opel/Vauxhall brand) LANDY (Supplied from Nissan in Japan) HFV6 engine (GM's global V6 engine built at Sagara plant) 14 SUZUKI MOTOR CORPORATION

  • Page 16
    ...Handeles G.m.b.H Suzuki Motor Poland SP.Z.O.O. American Suzuki Motor Corporation Suzuki Manufacturing of America Corporation Suzuki Canada Inc. Suzuki Motor de Mexico S.A. DE C.V. Suzuki Motor de Colombia S.A. Maruti Suzuki India Ltd. Suzuki Motorcycle India Private Limited Pak Suzuki Motor Co., Ltd...

  • Page 17
    ... of the corporate group The corporate group of the Company consists of subsidiaries of 140 companies and affiliates of 36. The main businesses are manufacturing and marketing of motorcycles, automobiles, marine & power products, motorized wheelchairs, electro senior vehicles and houses, further...

  • Page 18
    ... the Corporate Group 2. Operation flow chart As of March 31, 2007 Flow of products, parts Flow of services Motorcycle operations Manufacturing & marketing companies: Consolidated subsidiaries • Thai Suzuki Motor Co., Ltd. • Suzuki Motor Espana S.A. • Suzuki Manufacturing of America Corp. and...

  • Page 19
    18 SUZUKI MOTOR CORPORATION

  • Page 20
    ... Assets ...31 Consolidated Statements of Cash Flows ...32 Notes to Consolidated Financial Statements ...33 Report of Independent Auditor ...47 Non-Consolidated Financial Statements of 2008 Non-Consolidated Balance Sheets ...48 Non-Consolidated Statements of Income ...50 SUZUKI MOTOR CORPORATION 19

  • Page 21
    ... term business plan target] Consolidated sales amount Motorcycles Automobiles Others Consolidated ordinary income Exchange rate World production units Motorcycles Automobiles World sales units Motorcycles Automobiles 3-year total investment on equipment 20 SUZUKI MOTOR CORPORATION FY 2010 plan...

  • Page 22
    ... of small motorcycles in Asian market, the Company will promote injection of new models which suit market needs, strengthen sales forces and improve quality/production system. Also, as for motorcycle and ATV business in North American market in which the sales is slow due to increase of petrol price...

  • Page 23
    ..., directors mutually exchange information through weekly meetings, etc. (b) Auditors/board of corporate auditors and internal auditing The Company has adopted a corporate auditor system, and their board consists of five members including three persons of external corporate auditors in order to...

  • Page 24
    ... whenever necessary. Furthermore, in accordance with the "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...

  • Page 25
    ...(b) Europe Thanks to good sales of the "SWIFT" and the "SX4", net sales amounted to 777,323 million yen (117.6% as against PFY). Operating income decreased to 13,378 million yen (90.4% as against PFY) due to launching expenses for new vehicles and increase of depreciation cost. (c) North America Due...

  • Page 26
    ... spending for the next fiscal year is 290,000 million yen. These costs will be covered mainly by 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 25

  • Page 27
    ... The Company exports motorcycles, automobiles, outboard motors and their parts from Japan to many countries in the world and our overseas manufacturing bases also export products and parts to a number of countries. Foreign exchange fluctuations affect our business operations and our financial...

  • Page 28
    ...100.19 = US$1, the prevailing exchange rate as of March 31, 2008. Calculation of net income per share from the year of 2004 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...

  • Page 29
    Consolidated Financial Statements of 2008 Consolidated Balance Sheets As of March 31, 2008 and 2007 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Millions of yen Thousands of U.S. dollars 2008 2007 2008 ASSETS Current assets: Cash and time deposits ...Marketable securities *NOTE 5 ...

  • Page 30
    Consolidated Financial Statements of 2008 Millions of yen Thousands of U.S. dollars 2008 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 2007 2008 ¥ 605,372 196,390 - 24,857 154,448...

  • Page 31
    ...,027 Yen U.S. dollars Net income per share: Primary ...Fully diluted ...Cash dividends per share ...¥ 177.96 155.89 16.00 ¥ 169.41 151.41 14.00 $ 1.776 1.556 0.160 The accompanying Notes to Consolidated Financial Statements are an integral part of these statements. 30 SUZUKI MOTOR CORPORATION

  • Page 32
    ... Financial Statements of 2008 Consolidated Statements of Changes in Net Assets Years ended March 31, 2008 and 2007 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Thousands of shares of common stock Millions of yen Common stock Capital surplus Consolidated retained earnings Treasury stock...

  • Page 33
    ... debt and redemption of bonds Cash dividends paid ...Purchases of treasury stock ...Proceeds from sales of treasury stock ...Others ...Net cash used in and provided by financing activities Effect of exchange rate change on cash and cash equivalents Cash and cash equivalents increased Cash and cash...

  • Page 34
    ... December 31. "American Suzuki Motor Corporation" and the other 9 companies within above-mentioned 34 companies, their accounts were consolidated based on their financial statements by the preliminary settlement as of March 31, 2008. (Additional Information) PT Indomobil Suzuki International and its...

  • Page 35
    Consolidated Financial Statements of 2008 (f) Marketable securities, investment in securities The companies and its subsidiaries hold securities of listed companies, which have a risk of price fluctuations, and non-listed companies whose stock prices are difficult to be evaluated. If we judge the ...

  • Page 36
    ... and cash equivalents. (q) Reclassification Certain reclassifications of previously reported amounts are made to conform with current classifications. NOTE 3: Accounting Changes (Change in depreciation method of fixed assets) In accordance with revision of Japanese corporation tax, the company and...

  • Page 37
    Consolidated Financial Statements of 2008 NOTE 5: Marketable securities and investments in securities (a) Marketable securities and investments in securities quoted at an exchange as of March 31, 2008 and 2007 Millions of yen Acquisition Cost 2008 Amounts for BS Valuation Those whose amount for BS...

  • Page 38
    ...Financial Statements of 2008 (b) Other securities sold during 2008 and 2007 Millions of yen Thousands of U.S. dollars 2008 Amounts sold ...Gains from sales of the other securities ...Losses from sales of the other securities ...(c) Major securities not revalued by the market ¥74,578 3,132 - 2007...

  • Page 39
    ... of holders at the conversion price of ¥3,054 per share. If the outstanding convertible bonds were fully converted as of March 31, 2008, 63,910,727 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 40
    ... balance of this contract as of March 31, 2008 and 2007 were as follows. Millions of yen Thousands of U.S. dollars 2008 Commitment contract total ...Actual loan balance ...Variance ...¥155,000 - ¥155,000 2007 ¥150,000 - ¥150,000 2008 $1,547,060 - $1,547,060 SUZUKI MOTOR CORPORATION 39

  • Page 41
    ... the estimated amount of retirement benefits : Period fixed amount basis b. Discount rate : 2008 2.00% 2007 2.00% : 2008 0.85% - 1.90% 2007 0.23% - 1.90% : Mainly 15 years To be amortized by straight line method with the employees' average remaining service years at the time when the difference was...

  • Page 42
    ...Research and development costs included in selling, general and administrative expenses, for the years ended March 31, 2008 and 2007 were as follows: Thousands of U.S. dollars Millions of yen 2008 Research and development costs ...¥108,741 2007 ¥92,141 2008 $1,085,356 SUZUKI MOTOR CORPORATION...

  • Page 43
    ... Financial Statements of 2008 NOTE 11: Cash and cash equivalents Cash and cash equivalents as of March 31, 2008 and 2007 consisted of: Millions of yen Thousands of U.S. dollars 2008 Cash and time deposits ...Marketable securities ...Time deposits with maturities of over three months ...Marketable...

  • Page 44
    ...¥1,414 2007 ¥849 477 ¥1,326 2008 $ 9,189 4,925 $14,115 NOTE 13: Net assets The Companies Act 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 45
    Consolidated Financial Statements of 2008 NOTE 15: Segment information (a) Business segment Millions of yen 2008 Motorcycle Net sales: Outside customers ...Inter-area ...Operating expenses ...Operating income ...Assets ...Depreciation ...Capital expenditures ...Â¥591,967 - 591,967 569,425 22,542 ...

  • Page 46
    Consolidated Financial Statements of 2008 (b) Geographical segment Millions of yen 2008 Elimination and Japan Net sales: Outside customers ...Inter-area ...Operating expenses ...Operating income ...Assets ...¥1,405,694 788,323 2,194,017 2,109,057 ¥ 84,960 Europe North America Asia Other ...

  • Page 47
    Consolidated Financial Statements of 2008 (c) Overseas sales Millions of yen 2008 Europe Overseas sales ...Ratio of overseas sales to consolidated net sales ...26.3% 11.9% 25.3% 8.5% 72.0% ¥920,459 North America ¥415,713 Asia ¥887,904 Other areas*2 Consolidated ¥296,958 ¥2,521,036 ...

  • Page 48
    Consolidated Financial Statements of 2008 Report of Independent Auditor To the Board of Directors and Shareholders of Suzuki Motor Corporation We have audited the accompanying consolidated balance sheets of Suzuki Motor Corporation and its subsidiaries as of March 31, 2008 and 2007, and the related...

  • Page 49
    Non-Consolidated Financial Statements of 2008 Non-Consolidated Balance Sheets As of March 31, 2008 and 2007 Millions of yen Thousands of U.S. dollars SUZUKI MOTOR CORPORATION 2008 ASSETS Current assets: Cash and time deposits ...Marketable securities ...Receivables: Trade notes and accounts ......

  • Page 50
    Non-Consolidated Financial Statements of 2008 Millions of yen Thousands of U.S. dollars 2008 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 51
    ... Financial Statements of 2008 Non-Consolidated Statements of Income Years ended March 31, 2008 and 2007 SUZUKI MOTOR CORPORATION Millions of yen Thousands of U.S. dollars 2008 Net sales ...Cost of sales ...Gross profit ...¥2,031,639 1,592,729 438,910 2007 ¥1,939,806 1,542,814 396,992 2008...

  • Page 52
    ANNUAL REPORT 2008 99999-E2062-208 Printed in Japan