Suzuki 2011 Annual Report Download

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Table of contents

  • Page 1

  • Page 2
    ... 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 From the Management _____ 2 Financial...

  • Page 3
    ... Outstanding issues The Company has reviewed every aspect of our business and strengthened 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. However, in addition...

  • Page 4
    ... electric vehicles such as range extender, hybrid vehicles, diesel engine vehicles and fuel-cell vehicles utilizing these experiences. Under the slogan "Small Cars for a Big Future", we are committed to promoting the "production of small vehicles" and the "development of environmentally friendly...

  • Page 5
    Financial Highlights SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Years ended March 31, 2011 and 2010 Net sales ...Net income...Net income per share: Primary ...Fully diluted ...Cash dividends per share...Net assets ...Total current... exchange rate on March 31, 2011. Net Sales Years...

  • Page 6
    ... 7.8% America Europe 395,201 15.2% 98,967 3.8% 203,548 Other* 2.9% Motorcycle 9.9% Japan 937,452 35.9% Automobile 87.2% Asia 973,048 37.3% (Year ended March 31, 2011) (Year ended March 31, 2011, Millions of yen) *Marine & Power Products, etc. and Financial Services. SUZUKI MOTOR CORPORATION...

  • Page 7
    ... end of eco-car purchase subsidies and partly to the Great East Japan Earthquake, which caused a big drop in sales in March (typically the month when demand is highest). SOLIO 2. Suzuki Sales Suzuki's domestic automobile sales volume in fiscal 2010 was down 5% year-on-year at 588,000 units. It was...

  • Page 8
    ...in the Indian market, Maruti Suzuki India plans to increase its annual production capacity from the current to 1.2 million units to as much as 1.7 million units by 2013. Sagara Plant Passenger car and automobile engines assembling, foundry of engine components, machining SUZUKI MOTOR CORPORATION 7

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

  • Page 10
    Year in Review Motorcycles Suzuki's Worldwide Manufacturing and Sales Total overseas motorcycle production (including ATVs) in fiscal 2010 decreased to 2,550,000 units, 93.0% compared to the previous year. Worldwide production, including production in Japan, decreased to 2,735,000 units, 94.2% ...

  • Page 11
    ... at 11,791,000 units. GSX-R750 GSX-R600 Toyokawa Plant Motorcycles and outboard motors assembling 2. Suzuki Sales Suzuki's motorcycle marketing activities in Europe and the United States in fiscal 2010 reflected a priority on reducing inventories; Suzuki's motorcycle sales volume fell by 22% year...

  • Page 12
    ... sales growth by launching the Shogun underbone motorcycle and Hayate scooter in ASEAN countries and the underbone SlingShot in India. Hayate 125 Shogun AXELO 125 Suzuki Endurance Racing Team, World Championship SlingShot Plus Alvaro Bautista , MotoGP AMA Supercross SUZUKI MOTOR CORPORATION...

  • Page 13
    ... sales declined by 10% year-on-year in unit terms and by 2% year-on-year in turnover. Suzuki's four-stroke outboard motors range from the DF2 (the lowest-power model, which delivers 1.49kW/2PS) to the DF300 (the highest-power model, which delivers 220.7kW/300PS). Two new models with Suzuki's fuel...

  • Page 14
    ... a part in an experiment organized by Hamamatsu City. • In March 2011, the Burgman Fuel-Cell Scooter became the first fuel-cell vehicle of any kind to earn Whole Vehicle Type Approval in the European Union. Suzuki and British company Intelligent Energy, which developed the Burgman Fuel-Cell...

  • Page 15
    .... In Europe, Suzuki supplies vehicles to Fiat Group Automobiles S.p.A., Adam Opel AG, and Nissan Motor Co., Ltd (Nissan) on an OEM basis. Some Suzuki vehicles equip engines supplied by Fiat Powertrain Technologies S.p.A (FPT) and Renault S.A. In India where Suzuki regards as one of its key markets...

  • 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 Suzuki International Europe GmbH Suzuki Motor...

  • Page 17
    ... group The corporate group of the Company consists of subsidiaries of 138 companies and affiliates of 38. The main businesses are manufacturing and marketing of motorcycles, automobiles, marine & power products, motorized wheelchairs, electro senior vehicles and houses, and financial services...

  • 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
    ... Net Assets ...32 Consolidated Statements of Cash Flows...33 Notes to Consolidated Financial Statements ...34 Report of Independent Auditor...54 Non-Consolidated Financial Statements...55 Non-Consolidated Balance Sheets ...55 Non-Consolidated Statements of Income ...57 18 SUZUKI MOTOR CORPORATION

  • Page 20
    ... corporate nature and full internal reserve for future business developments from the medium- to long-term viewpoint, with the emphasis on the continuous and stable distribution. The Group has a structure in which profits are highly dependent on overseas manufacturing plants. They are mainly located...

  • Page 21
    ...the Company had stipulated the term of office of Directors to be for one year in order to clarify their management responsibilities and to address the change in the business environment flexibly. In addition to the regular meetings of the Board of Directors held every month, Directors hold a special...

  • Page 22
    ...to them to enhance their management structure. And our audit department helps to make rules for the subsidiaries and affiliates, conducts guidance, supporting and auditing for their regulatory compliance. It also promotes efficiency and standardization of their business. SUZUKI MOTOR CORPORATION 21

  • Page 23
    ...Over Financial Reporting (Council Opinions) " published by the Business Accounting Council of Financial Services Agency, the Japanese government. Based on that assessment, our management executive concluded that our Group's internal control over financial reporting was effective as of March 31, 2011...

  • Page 24
    ... and power products, etc. business increased by ¥3.2 billion (7.1%) to ¥48.6 billion year-on-year because of the sales increase mainly in Europe, North America, Asia and Oceania. Operating income also increased by ¥1.4 billion (26.2%) to ¥6.7 billion year-on-year. (d) Financial Services Sales of...

  • Page 25
    ... fiscal year, the Group invested a total ¥130.3 billion of capital expenditures for new model production, R&D investments, and so on. In the financing, ¥6.4 billion was secured by way of third-party allotment of new shares to Volkswagen AG in June 2010, of which was mainly appropriated to capital...

  • Page 26
    ... and purchase prices may adversely affect the performance and financial positions of the Group in any market where we conduct our businesses. In addition, the procurement of some of the parts has been limited to specific suppliers on account of technical abilities, quality, and price competitiveness...

  • Page 27
    ... motorcycles, automobiles, outboard motors and related parts to various countries in the world from Japan. In addition, we export those products and parts from the overseas manufacturing plants to multiple other countries. Fluctuations of exchange rates affect the management results and financial...

  • Page 28
    ... diluted ...Cash dividends per share...Net assets ...Total current assets...Total assets ...Depreciation and amortization... Note: Yen amounts are translated into U.S. dollars for convenience only, at ¥83.15 = U.S.$1, the prevailing exchange rate as of March 31, 2011. SUZUKI MOTOR CORPORATION 27

  • Page 29
    ... Financial Statements Consolidated Balance Sheets As of March 31, 2011 and 2010 Millions of yen Thousands of U.S. dollars SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES ASSETS Current assets: Cash and deposits ...Short-term investment securities *NOTE 4 ...Receivables: Notes and accounts...

  • Page 30
    Consolidated Financial Statements Millions of yen Thousands of U.S. dollars 2011 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable-trade ...Short-term loans payable * NOTE 5 2010 2011 ¥ 267,209 178,559 ...659,828 - 1,736,196 9,480,020 (946) 12,875,099 SUZUKI MOTOR CORPORATION 29

  • Page 31
    Consolidated Financial Statements Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Consolidated Statements of Income) Years ended March 31, 2011 and 2010 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Net sales ...Cost of sales ...Gross profit......

  • Page 32
    Consolidated Financial Statements (Consolidated Statements of Comprehensive Income) Years ended March 31, 2011 and 2010 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Income before minority interests ...Other comprehensive income Valuation difference on available-for-sale securities ......

  • Page 33
    ... Financial Statements Consolidated Statements of Changes in Net Assets Years ended March 31, 2011 and 2010 Millions of yen SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Balance as of March 31, 2009 Issuance of new shares...Dividends from surplus...Net income ...Purchase of treasury stock...

  • Page 34
    ... of long-term loans payable ...Proceeds from issuance of new shares...Purchase of treasury stock ...Proceeds from sales of treasury stock...Cash dividends paid ...Cash dividends paid to minority shareholders ...Other, net ...Net cash provided by (used in) financing activities Effect of exchange rate...

  • Page 35
    ... related to the recycling end-of-life products of the Company based on actual sales. (e) Provision for product liabilities With regards to the products exported to North American market, to prepare for the payment of compensation, not covered by "Product Liability Insurance" the anticipated amount...

  • Page 36
    ...balance method for the Company and domestic subsidiaries and mainly straight-line method for foreign subsidiaries Buildings and structures 3 to 75 years Machinery, equipment and vehicles 3 to 15 years b. Intangible assets (excluding lease assets) ...Straight line method c. Lease assets Finance lease...

  • Page 37
    ... Board of Japan; ASBJ Statement No.16, March 10, 2008) and the "Practical Solution on Unification of Accounting Policies Applied to Associates Accounted for Using the Equity Method" (ASBJ PITF No. 24, March 10, 2008) have been applied since the current consolidated fiscal year. This application...

  • Page 38
    ...value and reports them to 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 (longterm), and the Group uses interest-rate swaps for the interest rate risks of some long...

  • Page 39
    ... and accounts receivables-trade Short-term investment securities and Investment securities Available-for-sale securities Investments in subsidiaries and affiliates Total of assets Accounts payable-trade Short-term loans payable Current portion of long-term loans payable Accrued expenses Bonds with...

  • Page 40
    ... and accounts receivables-trade Fair values of sales finance receivables are calculated on the discount method by the expected rate applied to new loan contract, on each receivable classified into a certain term. Notes and accounts receivables-trade except sales finance are settled in short term and...

  • Page 41
    ... Short-term investment securities and Investment securities quoted at the stock exchange as of March 31, 2011 and 2010 Millions of yen 2011 Acquisition cost Carrying amount Unrealized gain (loss) Securities for which the carrying amount exceeds the acquisition costs Stocks...Bonds ...Other...Sub...

  • Page 42
    ...2011 Available-for-sale securities Unlisted stock ...Negotiable certificate of deposit ...Other...Unlisted stock of affiliates ...¥ 18,370 388,000 2,704 11,531 2010 ¥ 18,952 452,000 5,054 10,656 2011 $ 220,933 4,666,265 32,521 138,678 (f) The amounts to be redeemed after the account settlement...

  • Page 43
    ... 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, 2011 and 2010 Currency related transactions (non-market transactions) 2011 Type Foreign currency forward contracts Selling...

  • Page 44
    Consolidated Financial Statements b. Derivative transactions to which hedge accounting is applied as of March 31, 2011 and 2010 Currency related transactions Type 2011 Contract/ Amount due notional amount after one year Fair value (Amount: Millions of yen) 2010 Contract/ Amount due notional amount ...

  • Page 45
    ... accounting (Amount: Millions of yen) 2010 Contract/ Amount due notional amount after one year Fair value Interest rate swaps (Principal hedged item: Long term loans payable) Pay fixed ¥ - ¥ - receive floating Total - - ¥ - - ¥ 62,423 62,423 ¥ - - ¥ 24 24 44 SUZUKI MOTOR CORPORATION

  • Page 46
    Consolidated Financial Statements NOTE 5: Short-term borrowings and long-term debt Short-term borrowings as of March 31, 2011 and 2010 consisted of the following. The annual interest rates of short-term borrowings as of March 31, 2011 were from 0.28 percent to 13.80 percent. Thousands of U.S. ...

  • Page 47
    ... U.S. dollars Long-term loans payable ...Other (noncurrent liabilities) ... ¥ 276 767 ¥1,044 $ 3,328 9,229 $12,557 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, 2011 and 2010 were...

  • Page 48
    ... a. Term allocation of the estimated 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 : 2011 Mainly 2.00% 2010 Mainly 2.00% : 2011 1.50% 2010 1.50% : 2011...

  • Page 49
    ... and development costs included in selling, general and administrative expenses, for the years ended March 31, 2011 and 2010 were as follows: Millions of yen Thousands of U.S. dollars 2011 Research and development costs...¥104,079 2010 ¥108,784 2011 $1,251,703 48 SUZUKI MOTOR CORPORATION

  • Page 50
    ... Financial Statements NOTE 10: Cash and cash equivalents Cash and cash equivalents as of March 31, 2011 and 2010 consisted of: Millions of yen Thousands of U.S. dollars 2011 Cash and deposits ...Short-term investment securities...Time deposits with maturities of over three months ...Bonds...

  • Page 51
    ... Automobile Marine and Power products, etc. Financial Services Main products and services Motorcycles, All terrain vehicles Mini vehicles, Sub-compact vehicles, Standard-sized vehicles Outboard motors, Engines for snowmobiles, etc., Electro senior vehicles, Houses Sales finance, etc. 2. Methods of...

  • Page 52
    ...141,846 25 0 43,280 120,244 Thousands of U.S. dollars 2011 Motorcycle Automobile Marine & Power products, etc. Financial Services Eliminations or corporate assets Consolidated Net Sales: Net sales to external customers ...Internal net sales or transfer among segments ...Total Segment profit (loss...

  • Page 53
    Consolidated Financial Statements (Reference information) (a) Operating Results by Geographical areas Millions of yen 2011 Japan Europe North America Asia Other areas* Eliminations Consolidated Net Sales: Net sales to external customers...Â¥1,181,928 Internal net sales or transfer among ...

  • Page 54
    ... of U.S. dollars 2011 Japan India Other Total Net sales* ... $11,274,228 $8,235,488 $11,857,904 $31,367,622 * Net sales are counted based on the country location of external customers and divided by countries. (Overseas net sales) Millions of yen 2010 Europe North America Asia Other areas...

  • Page 55
    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, 2011 and 2010, and the ...

  • Page 56
    Non-Consolidated Financial Statements Non-Consolidated Balance Sheets As of March 31, 2011 and 2010 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......

  • Page 57
    ...Financial Statements Millions of yen Thousands of U.S. dollars 2011 LIABILITIES AND NET ASSETS Current liabilities: Short-term loans payable ...Payables: Accounts payable-trade ...Subsidiaries and affiliates ...Current portion of long-term...,799 $ 8,312,773 $18,331,115 56 SUZUKI MOTOR CORPORATION

  • Page 58
    ... Financial Statements Non-Consolidated Statements of Income Years ended March 31, 2011 and 2010 Millions of yen Thousands of U.S. dollars SUZUKI MOTOR CORPORATION Net sales ...Cost of sales ...Gross profit ... 2011 ¥1,409,205 1,104,394 304,810 2010 ¥1,286,633 1,033,860 252,773 2011...

  • Page 59
    ANNUAL REPORT 2011 Printed in Japan