Suzuki 2009 Annual Report Download

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ANNUAL REPORT
2009

Table of contents

  • Page 1
    ANNUAL REPORT 2009

  • Page 2
    ... resources to help raise the quality of human life in society by promoting corporate growth through manufacture and supply of socially demanded products. Head Office & Takatsuka Plant Headquarters, Engineering center and Motorcycle engines assembling plant Contents Profile _____ 1 A Message...

  • Page 3
    ... stop acting in a self-styled manner and get back to the basics" as our basic policy in promoting the growth strategy, reviewed every aspect of our business to strengthen our management practices. Automobile sales have dropped in various parts of the world, however, on account of the world financial...

  • Page 4
    ... diesel engine cars, hybrid cars and electric cars mainly with the product development abilities for small cars, the strength of our Group, based on the alliance with each company. Though General Motors Corporation, our strategic alliance partner, has filed on June 1, 2009 for Chapter 11 bankruptcy...

  • Page 5
    ...31 (Millions of yen) Net Income Per Share Years ended March 31 (yen) 177.96 169.41 3,163,669 3,004,888 2,746,453 65,945 2,365,571 60,506 75,008 80,254 125.64 112.94 61.68 27,429 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 2005 2006 2007 2008 2009 4 SUZUKI MOTOR CORPORATION

  • Page 6
    ...Other America 274,780 North 9.1% 234,766 7.8% Motorcycle 15.1% Japan 965,567 32.1% Europe Automobile 81.7% 737,945 24.6% Asia 791,829 26.4% (Year ended March 31, 2009) (Year ended March 31, 2009, Millions of yen) *Marine & Power Products, etc. and Financial Services. SUZUKI MOTOR CORPORATION...

  • Page 7
    ... market share was 14.1%, a record high that for the first time ever, places Suzuki second among the 12 domestic automobile manufacturers. In the mini vehicle category, the new Wagon R and new Alto Lapin were introduced to strengthen product competitiveness. Despite severe market conditions, sales...

  • Page 8
    ...fiscal 2009 and beyond, Suzuki will continue to put its best efforts into meeting contemporary needs with products that reflect the "Way of Life!" message. Kosai Plant Passenger car assembling plant Iwata Plant Sport utility vehicle and commercial vehicle assembling plant SUZUKI MOTOR CORPORATION...

  • Page 9
    Year in Review GRAND VITARA SX4 SPLASH (manufactured at Magyar Suzuki Corporation in Hungary) JIMNY SWIFT ALTO (manufactured at Maruti Suzuki India Limited in India) 8 SUZUKI MOTOR CORPORATION

  • Page 10
    ... (including ATVs) in overseas market increased to 3,222 thousand units, 101.4% compared to the previous year, while total global sales, including Japan, were 3,351 thousand units, 100.2% compared to the previous year. 3. Suzuki Motorcycle Topics Sales of the Let's4 and Let's5 series scooters in the...

  • Page 11
    ... the demands of each country and strengthen our sales network to increase sales. GLADIUS Bandit 650 Toyokawa Plant Motorcycles and outboard motors assembling plant 2. Product Expansion New big motorcycle introductions focused mainly on North American and European markets. The Gladius gave riders...

  • Page 12
    Year in Review UK125 Loris Capirossi, MotoGP UZ125 Suzuki Endurance Racing Team, World Endurance KINGQUAD 750AXi 4x4 Power Steering 3. Racing Activities In 2008, Suzuki acquired an admirable three podium finishes in the world's pinnacle motorcycle racing event MotoGP. And the GSX-R and RM-Z ...

  • Page 13
    ... previous year, due to the worldwide economic precipice mainly in U. S. and European markets. The current Suzuki 4-stroke Outboard Motor lineup ranges from the lowest horsepower model DF2.5 (1.8kW, 2.5 PS) to the highest horsepower model, the DF300 (220.7kW, 300 PS). All new DF8 (5.9kW, 8 PS) / DF9...

  • Page 14
    ... automobiles, motorcycles, outboard motors, etc., Suzuki addresses environmental conservation at all stages in its operations-from development to disposal. In product development, we make every effort to improve fuel economy, reduce exhaust emissions and noise, and develop clean energy vehicles, etc...

  • Page 15
    ... with General Motors Corporation (GM) in 1981. For example, Suzuki achieved various joint projects with GM such as; joint operation of the Canadian joint venture "CAMI Automotive Inc.", production & sale of joint developed products in Japan and Europe, mutual supply of OEM products, sharing global...

  • Page 16
    ...AMERICA] USA USA Canada Mexico Colombia [ASIA] India India Pakistan Indonesia Thailand Thailand Malaysia Philippines Myanmar Cambodia China Suzuki International Europe GmbH Suzuki Motor España, S.A Suzuki Motor Iberica, S.A Suzuki Italia S.p.A. Suzuki France S.A. Magyar Suzuki Corporation Suzuki GB...

  • Page 17
    ...of the corporate group The corporate group of the Company consists of subsidiaries of 141 companies and affiliates of 37. The main businesses are manufacturing and marketing of motorcycles, automobiles, marine & power products, motorized wheelchairs, electro senior vehicles and houses, and financial...

  • Page 18
    ... • Suzuki Marine Co., Ltd. Manufacturing & marketing company: Company in the application of equity method • Arctic Cat Inc. Financial services Finance company: Consolidated subsidiary • Suzuki Finance Co., Ltd. and other 1 company Dealers & Customers SUZUKI MOTOR CORPORATION 17 The Company...

  • Page 19
    ... Assets ...30 Consolidated Statements of Cash Flows ...31 Notes to Consolidated Financial Statements ...32 Report of Independent Auditor ...47 Non-Consolidated Financial Statements of 2009 Non-Consolidated Balance Sheets ...48 Non-Consolidated Statements of Income ...50 18 SUZUKI MOTOR CORPORATION

  • Page 20
    ... cars and electric cars mainly with the product development abilities for small cars, the strength of our Group, based on the alliance with each company. Meanwhile, on June 1, 2009 (local time in the USA), General Motors Corporation (GM), our alliance partner, filed for Chapter 11 bankruptcy-court...

  • Page 21
    ... measures. (2) Organization of the Company (a) Directors/board of directors The Company has reduced the number of directors (eleven directors as of issuance of this report), and introduced an new managing officer system (senior managing executive officers and managing executive officers) aiming at...

  • Page 22
    ... 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 23
    ..., 2009. Seimei Audit Corporation, the Company's independent auditor, has audited the Internal Control Report made by our management executive, and expressed an unqualified opinion regarding effectiveness of the Group's internal control over financial reporting as of March 31, 2009. 22 SUZUKI MOTOR...

  • Page 24
    ...exchange influences. (c) Marine and Power products, etc Sales and operating income of marine and power products, etc were ¥66,720 million (87.1% y-o-y) and ¥9,234 million (71.6% y-o-y), respectively, on account of reduced sales of outboard motors in North America and Europe. (d) Financial Services...

  • Page 25
    ... from long-term and short-term loans payable. As a result, the balance of cash and cash equivalents at the end of this fiscal year declined to ¥427,797 million, down ¥28,571 million from the end of the previous fiscal year. (2) Demand for money During this fiscal year, the Company and main...

  • Page 26
    ... 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 bases also export products and parts to a number of countries. Foreign...

  • Page 27
    ... US$1, the prevailing exchange rate as of March 31, 2009. Calculation of net income per share of 2006 and 2005 is made on the adjusted net income basis excluding the bonuses paid to directors and corporate auditors and the payment of cash dividends to shareholders of preferred stocks from net income...

  • Page 28
    ... Balance Sheets As of March 31, 2009 and 2008 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Millions of yen Thousands of U.S. dollars 2009 2008 2009 ASSETS Current assets: Cash and deposits ...Short-term investment securities * Receivables: Notes and accounts receivables-trade...

  • Page 29
    Consolidated Financial Statements of 2009 Millions of yen Thousands of U.S. dollars 2009 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable-trade ...Short-term loans payable * NOTE 5 2008 2009 ¥ 368,811 399,010 29,605 6,285 138,244 143,165 1,085,121 ¥ 605,372 196,390 - 24,857 ...

  • Page 30
    Consolidated Financial Statements of 2009 Consolidated Statements of Income Years ended March 31, 2009 and 2008 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Millions of yen Thousands of U.S. dollars 2009 ¥3,004,888 2,315,958 688,930 612,003 76,926 2008 ¥3,502,419 2,631,880 870,539 ...

  • Page 31
    Consolidated Financial Statements of 2009 Consolidated Statements of Changes in Net Assets Years ended March 31, 2009 and 2008 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Thousands of shares of common stock Millions of yen Common stock Capital surplus Retained earnings Treasury stock ...

  • Page 32
    ... of long-term loans payable ...Cash dividends paid ...Cash dividends paid to minority shareholders ...Purchase of treasury stock ...Proceeds from sales of treasury stock ...Other, net ...Net cash provided by (used in) financing activities Effect of exchange rate changes on cash and cash equivalents...

  • Page 33
    ... statements of Suzuki Motor Corporation (the Company) have been prepared on the basis of generally accepted accounting principles and practices in Japan, and the consolidated financial statements were filed with the Ministry of Finance Japan as required by the Financial Instruments and Exchange Act...

  • Page 34
    ...(i) Inventories Cost method mainly by the gross average method (figures on the consolidated balance sheet are by the method of book devaluation based on the reduction of profitability) (j) Method of depreciation and amortization of non-current assets a. Property, plant and equipment (excluding lease...

  • Page 35
    ... pension system etc. Decreased yield on long-term bond leads to a decrease in discount rate and has an adverse influence on the calculation of retirement benefit cost. However, the pension system adopted by the Company has a cash balance type plan, and thus the revaluation ratio, which is one of the...

  • Page 36
    Consolidated Financial Statements of 2009 NOTE 4: Short-term investment securities and investment securities (a) Short-term investment securities and investment securities quoted at an exchange as of March 31, 2009 and 2008 Millions of yen Acquisition Cost 2009 Amounts for BS Valuation Those whose...

  • Page 37
    ... market Millions of yen Thousands of U.S. dollars 2009 Available-for-sale securities Commercial paper ...Unlisted stock ...Negotiable certificate of deposit ...¥ 1,998 21,486 279,000 2008 2009 ¥ 9,981 21,185 199,900 $ 20,345 218,736 2,840,272 (d) The amounts to be redeemed after the account...

  • Page 38
    Consolidated Financial Statements of 2009 NOTE 5: Short-term borrowings and long-term debt Short-term borrowings as of March 31, 2009 and 2008 consisted of the following. The annual interest rates of shortterm borrowings as of March 31, 2009 were 0.59 percent to 14.24 percent. Thousands of U.S. ...

  • Page 39
    ... Property, plant and equipment ...Notes and accounts receivable-trade ...Merchandise and finished goods ... ¥2,188 376 203 ¥2,767 $22,280 3,828 2,068 $28,177 Secured liabilities as of March 31, 2009: Millions of yen Thousands of U.S. dollars Short-term loans payable ...Long-term loans payable...

  • Page 40
    ... amount of retirement benefits b. Discount rate c. Reassessment rate d. Assumed return of investment ratio e. Number of years for amortization of prior service cost : Period fixed amount basis : 2009 2.00% 2008 2.00% : 2009 1.50% 2008 1.50% : 2009 0.77% -1.90% 2008 0.85% -1.90% : Mainly 15 years To...

  • Page 41
    ... and development costs included in selling, general and administrative expenses, for the years ended March 31, 2009 and 2008 were as follows: Thousands of U.S. dollars Millions of yen 2009 Research and development costs ...¥114,961 2008 ¥108,741 2009 $1,170,325 40 SUZUKI MOTOR CORPORATION

  • Page 42
    ...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. Proceeds in excess of the stated capital should be credited to "legal capital surplus". The Companies Act provides that an amount equivalent to...

  • Page 43
    ... ¥ 66,628 ¥ 30,336 ¥ - ¥3,004,888 Marine & Power products, etc. Financial Services corporate assets Consolidated Eliminations or Millions of yen 2008 Motorcycle Automobile Net Sales: Net sales to external customers Internal net sales or transfer among segments ...Total Operating expenses...

  • Page 44
    ... Group more clearly. As a result, sales increased by ¥40,102 million for "Automobile", ¥78,693 million for "Financial Services" and ¥92 million for "Marine and Power products, etc.", and sales decreased by ¥118,887 million for "Eliminations or corporate assets" compared to the traditional method...

  • Page 45
    ... yen 2009 Eliminations or Japan Net sales: Net sales to external customers ¥1,345,370 Internal net sales or transfer among segments ...Total Operating expenses ...Operating income (loss) ...Assets: 478,496 1,823,866 1,795,084 ¥ 28,782 Europe North America Asia Other areas*1 corporate assets...

  • Page 46
    ... principally of Oceania and South America. NOTE 15: Impairment loss The assets are divided into two groups, i.e. the assets for business and the assets for rent respectively in business places. The book value of the asset group of marketing base of which land price have dropped significantly was...

  • Page 47
    ... General Motors Corporation (2) Headquarters: 300 Renaissance Center P.O. Box 300, Detroit, MI 48265-3000, USA (3) Representative: President and Chief Executive Officer Frederick A. Henderson (4) Capital: US$1,017 million (as of December 31, 2008) (5) Main business: Development, manufacture and sale...

  • Page 48
    ... in Japan. As discussed in Note 16 (b), the Company described the fact that General Motors Corporation (GM), a trading partner of the Company, filed for Chapter 11 bankruptcy-court protection of the U.S. Bankruptcy Code on June 1, 2009 (local time in the USA), and listed an outline of GM, type and...

  • Page 49
    ... Financial Statements of 2009 Non-Consolidated Balance Sheets As of March 31, 2009 and 2008 Millions of yen Thousands of U.S. dollars SUZUKI MOTOR CORPORATION 2009 ASSETS Current assets: Cash and deposits ...Short-term investment securities ...Receivables: Notes and accounts receivable-trade...

  • Page 50
    ...2009 LIABILITIES AND NET ASSETS Current liabilities: Short-term loans payable ...Payables: Accounts payable-trade ...Subsidiaries and affiliates ...Current portion of convertible bonds ...Accrued expenses ...Income taxes payable ...Other ...Total current liabilities Noncurrent liabilities: Long-term...

  • Page 51
    ... Financial Statements of 2009 Non-Consolidated Statements of Income Years ended March 31, 2009 and 2008 SUZUKI MOTOR CORPORATION Millions of yen Thousands of U.S. dollars 2009 Net sales ...Cost of sales ...Gross profit ...¥1,685,777 1,347,065 338,711 2008 ¥2,031,639 1,592,729 438,910 2009...

  • Page 52
    ANNUAL REPORT 2009 99999-E2062-209 Printed in Japan