Suzuki 2010 Annual Report Download - page 3

2 SUZUKI MOTOR CORPORATION
A Message From the Management
In delivering our 2010 Annual Report, we wish to
extend our greetings to you.
•Managementresultsofthisscalyear
The management environment of the Group for this
year continues to be in a severe situation with high
unemployment rates continued in the US and Europe,
while the global economy has not fully recovered al-
though it is gradually recovering on account of the
economic recoveries mainly in Asia and economic
stimulus measures by each government. The domes-
tic economy has recovered to some extent with recov-
eries in export and production based on the overseas
economic recovery and the influences of economic
measures, but it is still in a severe situation with dea-
tionary concerns and a high unemployment rate.
Under these circumstances, consolidated sales
largely declined for the two consecutive years to
¥2,469.1 billion (82.2% year on year, y-o-y) on ac-
count of the reduced domestic and overseas sales
volume and fluctuations in exchange rates due to
Yen appreciation. As for the consolidated profits,
the reduced prots caused by a sales decline and
exchange inuences were covered by the reduction
of operating expenses mainly by “internal cost re-
duction” initiative and favorable sales of automobiles
in Asia, and prots exceeded those of the previous
year with ¥79.4 billion of operating income (103.2%
y-o-y), ¥93.8 billion of ordinary income (117.8% y-
o-y) and ¥28.9 billion of net income (105.4% y-o-y).
Meanwhile, non-consolidated sales declined to
¥1,286.6 billion (76.3% y-o-y). However, as for the
prots, the reduced prots caused by a sales de-
cline and exchange inuences were covered by the
vigorous reduction of various expenses and prots
exceeded those of the previous years with ¥12.0
billion of operating income (105.1% y-o-y), ¥12.1
billion of ordinary income (292.1% y-o-y) and ¥7.1
billion of net income (215.6% y-o-y).
The management environment substantially changed
from the latter half of the previous year, and sales have
continued to drop substantially, but we were able to
record profits by vigorous cost reductions in every
aspect. The management environment still looks grim,
but to express our gratitude for your daily support,
we would like to provide ¥7 of year-end dividend per
share. As a result, our annual dividend including in-
terim dividend (¥5 per share) will be ¥12 per share.
•Outstandingissues
We have reviewed every aspect of our business to
strengthen our management practices placing “Let’s
review the current practices and stay true to the
basics in order to survive the competition.” as our
basic policy in promoting the growth strategy. How-
ever, automobile sales declined in various regions of
the world due to the global nancial crises of the last
year, and the situation we are in has been difcult,
with our sales for this year having dropped by more
than 30% from the peak of the scal year ended in
March 2008.
To overcome this crisis, we have been making con-
certed efforts as a group with the slogan of “Let’s start
again in all areas to address our 30% sales decrease.”
As specic measures, facing the fact of a large reduc-
tion in sales squarely, we promote the establishment
of system to ensure prots in the declining sales by
cost reduction by “weight reduction of 1g and cost
reduction of 1 yen per part,” squeezing of xed ex-
penses by “internal cost reduction activities” and fur-
ther 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 t
for the market needs, strengthening of sales forces
and improving of the quality and productivity for
motorcycles. Especially, we will strengthen the small
motorcycle business in the Asian region where fur-
ther growth can be expected.
In automobile business, we will promote product de-
velopment and sales activities closely tied with both
domestic and overseas markets. In Japan, we will
strengthen sales abilities and after sale activities in
the Suzuki sales ofces nationwide to promote the
improvement of the customer satisfaction. We will try
to create sales ofces loved by as many customers
as possible in order to achieve a sales increase.
In overseas markets, we will try to improve SUZUKI
brand image by using the slogan of “Way of life” and
increase the level of overseas bases through pro-
motion of local procurement of parts, cost reduction
activities, further improvement of quality and further
progress in productivity, as well as sales enhance-
ment. As to the business in North America that the
profit has been declining, we will try to rebuild by
reviewing the sales structure etc.