Suzuki 2008 Annual Report Download - page 21

20 SUZUKI MOTOR CORPORATION
Management Policy
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 have paid 16.00 yen per share as common dividends (including interim dividends of 8.00
yen), an increase of 2.00 yen per share, for the current fiscal year, as already modified in the announcement of interim financial
results.
As for next fiscal year, the annual dividend is scheduled to be 16.00 yen per share (including interim dividends of 8.00 yen),
same as current year.
Note: “the Company” = Suzuki Motor Corporation
3. Current Status of Medium-term management strategy
On the “Suzuki medium term-five year plan” modified and publicized on April 27, 2007, the Suzuki Group was able to
achieve the consolidated sales target of 3,500 billion yen ahead of schedule thanks to the active growth of automobile sales in
Europe and Asia.
On the other hand, the business environment is drastically changing and capital investment for the new projects is
expected to rise. Therefore, after three years past from start of the original five-year plan, we have newly drawn up “Suzuki
medium term three-year plan (April 2008 - March 2011) by including FY 2010 to the remaining two financial years. The new
plan is targeting a consolidated sales amount of 4,000 billion yen in FY 2010.
In this “three-year medium term plan”, we will continue to adopt the former policy and set concrete business target as
follows;
With this policy, every member of the Suzuki Group intend to strive continuously to achieve this business target.
[Basic policy]
Carrying out investments in R & D and facilities, the Suzuki Group will establish the
revenue base and develop human resources for further growth.
[Medium term business plan target] FY 2010 plan FY 2007 actual
Consolidated sales amount 4,000 billion yen 3,502.4 billion yen
Motorcycles 620 billion yen 592.0 billion yen
Automobiles 3,300 billion yen 2,833.9 billion yen
Others 80 billion yen 76.5 billion yen
Consolidated ordinary income 170 billion yen 156.9 billion yen
Exchange rate US$ 100 yen US$ 114 yen
EURO 145 yen EURO 160yen
World production units
Motorcycles 4.40 million units 3.39 million units
Automobiles 3.20 million units 2.64 million units
World sales units
Motorcycles 4.40 million units 3.34 million units
Automobiles 2.95 million units 2.41 million units
3-year total investment on equipment 750 billion yen (including main affiliates)