Suzuki 2009 Annual Report Download - page 3

2 SUZUKI MOTOR CORPORATION
A Message From the Management
In delivering our 2009 Annual Report, we wish to
extend our greetings to you.
• Management results of this fiscal year
For the management environment of the Group
during this year, the world economy, mostly in the
US and Europe, increasingly slowed down on ac-
count of the US subprime loan issue and the soar-
ing of the crude oil and raw material prices in the
first half, and in the second half, the economy rap-
idly deteriorated in various parts of the world by
the worsening of the financial crisis, being in the
extremely severe situation. The management envi-
ronment in Japan was also drastically changed as
a result of the large reduction in manufacturing by
the decreased exports, the rapid yen appreciation
and the stock price fall, and we are faced with the
unprecedented critical situation.
Under these circumstances, consolidated sales
were ¥3,004,888 million (85.8% year on year, y-o-
y) for this fiscal year, below consolidated sales of
the previous year, on account of the overseas
sales reduction and yen appreciation. As for con-
solidated profits, operating income, ordinary in-
come and net income declined to ¥76,926 million
(51.5% y-o-y), ¥79,675 million (50.8% y-o-y) and
¥27,429 million (34.2% y-o-y), respectively, be-
cause the reduced costs, reduced depreciation/
amortization and operating expenses, etc were
unable to cover the reduced profits on account of
the reduced sales, increased raw material costs,
exchange influences and increased research and
development expenses.
In addition, non-consolidated sales declined to
¥1,685,777 million (83.0% y-o-y) for this fiscal
year. As for non-consolidated profits, operating
income, ordinary income and net income declined
to ¥11,422 million (16.9% y-o-y), ¥4,133 million
(6.7% y-o-y) and ¥3,287 million (8.0% y-o-y), re-
spectively, because the reduced costs, reduced
depreciation/amortization and operating ex-
penses, etc were unable to cover the reduced
profits on account of the reduced sales, exchange
influences and increased research and develop-
ment expenses.
The management environment drastically
changed in the latter half of this year, and the situ-
ation has become severer, but the Company re-
corded profits for the full year. Therefore, to ex-
press our gratitude for our shareholders, we de-
cided to distribute ¥8 as the dividend at the end of
the current fiscal year (¥16/year including interim
dividend), the same as the previous year.
• Outstanding issues
We have placed “In order to survive, let us 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 prac-
tices.
Automobile sales have dropped in various parts of
the world, however, on account of the world finan-
cial crisis, and we are faced with unprecedented
crisis with the prospect of more than 30% fall in
expected sales for the next year compared to pre-
vious fiscal year.
To overcome this crisis, we have been making
concerted efforts as a group with the slogan of
“Try our ingenuity to overcome difficulties.”
As specific measures, facing the fact of a large
reduction in sales squarely, we promote the es-
tablishment of system to ensure profits in the de-
clining sales by cost reduction by “reduction of a
gram and cost reduction of 1 yen per part,”
squeezing of fixed expenses by “internal cost re-
duction activities” and further reviewing of organi-
zations and systems.
Next, as for the issues challenged by our major
businesses of motorcycle business and automo-
bile business, we will promote launching of prod-
ucts fit for the market needs, strengthening of
sales forces and improving of the quality and pro-
ductivity for motorbikes. Especially, we will
strengthen the small motorbike business in the
Asian region where further growth can be ex-
pected.
In automobile business, the marketing activities
and products supply in a close contact with the
market will be executed.