Suzuki 2010 Annual Report Download
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Table of contents
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Page 1
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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 ...
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Page 3
... part," squeezing of fixed expenses by "internal cost reduction activities" and further reviewing of organizations and structure. Next, as for the issues challenged by our major businesses of motorcycle business and automobile business, we will promote launching of products fit for the market needs...
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Page 4
... comprehensive partnership. In terms of product portfolio, global distribution and manufacturing capacities, both companies ideally complement each other. The companies plan a joint approach to the growing worldwide demand for more environmentally friendly vehicles. The management of the Company and...
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Page 5
Financial Highlights
SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Years ended March 31, 2010 and 2009
Net sales ...Net income ...Net income per share: ...28,913
61.68
62.76
2006
2007
2008
2009
2010
2006
2007
2008
2009
2010
2006
2007
2008
2009
2010
4 SUZUKI MOTOR CORPORATION
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Page 6
... America
131,824 5.3% 161,808
Other*
3.1%
Motorcycle
10.6%
Japan
952,558 38.6%
Europe
451,145 18.3%
Automobile
86.2%
Asia
771,726 31.3%
(Year ended March 31, 2010)
(Year ended March 31, 2010, Millions of yen)
*Marine & Power Products, etc. and Financial Services.
SUZUKI MOTOR CORPORATION...
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Page 7
... units, 101.9% compared to the previous year.
3. Suzuki Automobile Topics
• The seventh generation Alto was introduced to the domestic market in December, 2009. Focusing on resource saving, fuel efficiency, and user convenience, all class models meet requirements for eco-car tax reductions. Sales...
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Page 8
...% y-o-y at 29 thousand units in the United States.
Iwata Plant Multi-purpose vehicle and commercial vehicle assembling
3. Suzuki Topics in Fiscal 2009
May 2009 saw the 30th anniversary of the launch of the Alto. According to Suzuki research, cumulative worldwide Alto sales had reached 10 million...
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Page 9
Year in Review
KIZASHI
SWIFT
SX4
SPLASH (manufactured at Magyar Suzuki Corporation in Hungary)
JIMNY
ALTO (manufactured at Maruti Suzuki India Limited in India)
8 SUZUKI MOTOR CORPORATION
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Page 10
...400 ABS and Boulevard 400 models were introduced at year-end, and sales are expected to expand with promotions planned for spring season demand.
The Japanese Market
1. Domestic Market Overview
The number of motorcycles shipped in the domestic market by the four Japanese manufacturers in fiscal 2009...
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Page 11
...regions.
GSX1250FA
GSX-R1000 "25th Anniversary Edition" Toyokawa Plant Motorcycles and outboard motors assembling
2. Suzuki Sales
Suzuki's fiscal-2009 motorcycle sales volume in North America was down 53% y-o-y at 51 thousand units owing to marketing activities that gave top priority to inventory...
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Page 12
... for production motorcycles in 2009, and Suzuki made a good showing in MotoGP and Motocross MX1. Suzuki's launches of 2010 new models in North America and Europe included the GSX1250FA, the RMX450Z, the RMZ250, and the GSX-R1000 25th Anniversary Edition. In the ASEAN market, Suzuki pursued sales...
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Page 13
...highest horsepower model, the DF300 (220.7kW, 300 PS). More fuel saving Lean Burn Control New DF40 (29.4kW, 40PS) / DF50 (36.8kW, 50PS) and DF300 (220.7kW, 300PS) were introduced at Miami International Boat Show in U.S. in February, 2010.
DF9.9
DF300
DF175
DF60
DF300
12 SUZUKI MOTOR CORPORATION
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Page 14
...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, develop clean energy vehicles, etc. In manufacturing...
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Page 15
... Co., Ltd in domestic and overseas markets, OEM supply of vehicles to Mazda Motor Corporation, Adam Opel AG and Fiat Group Automobiles S.p.A., and licensing of diesel engine from Fiat Powertrain Technologies S.p.A. Suzuki will hold comprehensive partnership with VW as a core, and continue to pursue...
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Page 16
..., Japan
Major Overseas Subsidiaries
[EUROPE] Germany Spain Spain Italy France Hungary UK Austria Poland [AMERICA] USA USA Canada Mexico Colombia [ASIA] India India Pakistan Indonesia Thailand Thailand Malaysia Philippines Cambodia China Vietnam Taiwan Myanmar Suzuki International Europe GmbH Suzuki...
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Page 17
...of the corporate group
The corporate group of the Company consists of subsidiaries of 139 companies and affiliates of 35. The main businesses are manufacturing and marketing of motorcycles, automobiles, marine & power products, motorized wheelchairs, electro senior vehicles and houses, and financial...
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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...
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Page 19
... in Net Assets ...31 Consolidated Statements of Cash Flows ...32 Notes to Consolidated Financial Statements ...33 Report of Independent Auditor ...51
Non-Consolidated Financial Statements
Non-Consolidated Balance Sheets ...52 Non-Consolidated Statements of Income ...54
18 SUZUKI MOTOR CORPORATION
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Page 20
... to the business in North America that the profit has been declining, we will try to rebuild by reviewing the sales structure etc. In addition, in research and development, the environmentally friendly product development for protecting global environment such as reduced emission gas, improved fuel...
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Page 21
...our stakeholders including shareholders, customers, business partners, regional communities and employees, and by making contribution toward international society. For its fulfillment, the Company recognizes that enhancement of corporate governance is one of its most important management issues, and...
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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...
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Page 23
... 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, 2010.
22 SUZUKI MOTOR CORPORATION
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Page 24
... exchange fluctuations. (c) Marine and Power products, etc Sales and operating income of marine and power products, etc. business were ¥45.4 billion (68.1% y-o-y) and ¥5.3 billion (57.5% y-o-y), respectively, on account of global decreasing demand for outboard motors. (d) Financial Services Sales...
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Page 25
... Statements.
4. Risks in operations
Risks that may affect the management results, stock price and financial situation of the Group include the followings. Matters in relation to the future mentioned in the text below are based on our conclusions as of June 29. 2010.
24 SUZUKI MOTOR CORPORATION
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Page 26
...motorcycles industries is further promoted. Competitions with other companies include various aspects such as product quality, safety, price, environmental performance, as well as efficiency of product development and manufacturing system, establishment of sales and service systems and sales finance...
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Page 27
....
The major manufacturing plants of the Group in Japan conduct manufacturing activities, located mainly in the Tokai region. In addition, the head office and other facilities of the Company are also concentrated in the Tokai region. Any occurrences of Tokai earthquake and South East Sea earthquake...
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Page 28
... of Net Assets in the Balance Sheet" (Accounting Standards Board of Japan; ASBJ Statement No. 5) and "Guidance on Accounting Standard for Presentation of Net Assets in the Balance Sheet (ASBJ Guidance No. 8) have been applied since the year ended March 31, 2007.
SUZUKI MOTOR CORPORATION 27
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Page 29
... Financial Statements
Consolidated Balance Sheets
As of March 31, 2010 and 2009
SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES ASSETS Current assets: Cash and deposits ...Short-term investment securities * Receivables: Notes and accounts receivables-trade ...Allowance for doubtful accounts...
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Page 30
Consolidated Financial Statements
Millions of yen
Thousands of U.S. dollars
2010 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable-trade ...Short-term loans payable *
NOTE 5
2009
2010
Â¥ 391,874 221,320 39,616 - 13,129 121,136 146,837 933,915
Â¥ 368,811 384,567 14,442 29,605 ...
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Page 31
...Financial Statements
Consolidated Statements of Income
Years ended March 31, 2010 and 2009
SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Net sales ...Cost of sales ...Gross profit... to Consolidated Financial Statements are an integral part of these statements.
30 SUZUKI MOTOR CORPORATION
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Page 32
... Statements of Changes in Net Assets
Years ended March 31, 2010 and 2009
SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Balance as of March 31, 2008 Effect of changes in accounting policies applied to foreign subsidiaries ...Dividends from surplus ...Net income ...Purchase of treasury stock...
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Page 33
...from financing activities
Net increase (decrease) in short-term loans payable ...Proceeds from long-term loans payable ...Repayment of long-term loans payable ...Purchase of treasury stock ...Proceeds from sales of treasury stock ...Cash dividends paid ...Cash dividends paid to minority shareholders...
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Page 34
... 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...
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Page 35
... (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 noncurrent assets a. Property, plant and equipment (excluding lease...
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Page 36
...of each 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...
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Page 37
... the Board of Directors. Most of accounts payable-trade are due within one year. Applications of borrowings are fund for operating capital (mainly short-term) and capital expenditures (long-term), and the Group uses interest-rate swaps for the interest rate risks of some long-term borrowings to fix...
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Page 38
...prices of the stock exchanges. Also please see Note 2 (f). Liabilities a. Accounts payable-trade and Short-term loans payable Because these are settled in short term and those fair values are approximately equal to the carrying amounts, such carrying amounts are used. b. Current portion of long-term...
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Page 39
...Financial Statements
(c) Short-term investment securities and Investment securities quoted at the stock exchange as of March 31, 2010 and 2009
Millions of yen
2010
Acquisition cost Carrying amount Unrealized gain (loss)
Securities for which the carrying amount exceeds the acquisition costs Stocks...
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Page 40
... the account settlement date of securities with maturities among availablefor-sale securities
Millions of yen
2010
Within one year More than one year, within five years More than five years, within ten years More than ten years
Bonds Government, local gov. bonds, etc...Corporate bonds ...Other...
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Page 41
...Group's exposure to market risk. Fair values of derivatives which are shown in the below table are valued at the market rates reported by the financial institutions. a. Derivative transactions to which hedge accounting is not applied as of March 31, 2010...394)
(315) (315)
40 SUZUKI MOTOR CORPORATION
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Page 42
Consolidated Financial Statements
b. Derivative transactions to which hedge accounting is applied as of March 31, 2010 Currency related ...hedged item: Long term loans payable) Pay fixed receive 62,423 - floating Total 62,423 -
24 24
670,926 670,926
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258 258
SUZUKI MOTOR CORPORATION 41
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Page 43
... Board of Directors held on June 3, 2010, fell below the current market price as defined in the terms and conditions of the bonds, the Company has adjusted the conversion price of the bonds from 3,021.60 to 3,020.20 in accordance with terms and conditions of the bonds.
42 SUZUKI MOTOR CORPORATION
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Page 44
... ...Long-term loans payable ...Other (noncurrent liabilities) ...
¥ 174 17 1 857 ¥1,050
$ 1,875 182 16 9,214 $11,289
NOTE 6: Loan commitment
The Company has the commitment contract with five banks for effective financing. The outstanding balance of this contract as of March 31, 2010 and 2009...
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Page 45
... return of investment ratio e. Number of years for amortization of prior service cost : Period fixed amount basis : 2010 Mainly 2.00% 2009 Mainly 2.00% : 2010 1.50% 2009 1.50% : 2010 0.58%-1.90% 2009 0.77%-1.90% : Mainly 15 years To be amortized by straight line method with the employees' average...
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Page 46
...
Research and development costs included in selling, general and administrative expenses, for the years ended March 31, 2010 and 2009 were as follows:
Millions of yen Thousands of U.S. dollars
2010 Research and development costs...Â¥108,784
2009 ¥114,961
2010 $1,169,226
SUZUKI MOTOR CORPORATION...
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Page 47
... of yen
2010
2009 ¥ 45 6 ¥ 51
2010 $ 65 0 $ 65
NOTE 12: Net assets
The Companies Act of Japan requires that at least 50% of the contribution of new shares be included in a company's common stock. The portion to be recorded as common stock is determined by resolution of the board of directors...
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Page 48
...Financial Statements
NOTE 14: Segment Information
(a) Business segment
Millions of yen
2010
Motorcycle Automobile Marine & Power products, etc. Financial Services Eliminations or corporate assets Consolidated
Net Sales: Net sales to external customers Internal net sales...SUZUKI MOTOR CORPORATION 47
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Consolidated Financial Statements
(b) Geographical segment
Millions of yen
2010
Japan Europe North America Asia Other areas*1 Eliminations or corporate assets Consolidated
Net sales: Net sales to external customers .. ¥1,115,963 ¥ 415,890 ¥ 127,136 ¥ 742,631 Internal net sales or transfer ...
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Page 50
Consolidated Financial Statements
(c) Overseas sales
Millions of yen
2010
Europe North America Asia Other areas*2 Consolidated
Overseas sales ...Ratio of overseas sales to consolidated net sales ...
Â¥451,145
Â¥131,824
Â¥771,726
Â¥161,808
Â¥1,516,504
Consolidated net sales ...2,469,063 18.3%...
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Page 51
Consolidated Financial Statements
NOTE 16: Subsequent events
(a) The following plan for the profit distribution for the year ended March 31, 2010 was approved by the ordinary general meeting of shareholders of the Company held on June 29, 2010. As a result, annual dividend including interim ...
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Page 52
Consolidated Financial Statements
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 consolidated subsidiaries as of March 31, 2010 and 2009, and the ...
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Page 53
... Financial Statements
Non-Consolidated Balance Sheets
As of March 31, 2010 and 2009
Millions of yen
Thousands of U.S. dollars
SUZUKI MOTOR CORPORATION ASSETS Current assets: Cash and deposits ...Short-term investment securities ...Receivables: Notes and accounts receivable-trade...Subsidiaries...
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Page 54
...Consolidated Financial Statements
Millions of yen
Thousands of U.S. dollars
2010 LIABILITIES AND NET ASSETS Current liabilities: Short-term loans payable ...Payables: Accounts payable-trade ...Subsidiaries and affiliates ...Current portion of long-term dept ...Current portion of convertible bonds...
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Page 55
... Financial Statements
Non-Consolidated Statements of Income
Years ended March 31, 2010 and 2009
Millions of yen
Thousands of U.S. dollars
SUZUKI MOTOR CORPORATION Net sales ...Cost of sales ...Gross profit ...
2010 ¥1,286,633 1,033,860 252,773
2009 ¥1,685,777 1,347,065 338,711
2010...
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ANNUAL REPORT 2010 99999-E2062-210 Printed in Japan