Suzuki 2012 Annual Report Download

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Table of contents

  • Page 1

  • Page 2

  • Page 3
    ... 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 production facilities are currently located in 22 countries...

  • Page 4
    ... 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. As a result, amid a number of negative factors such as the sluggish market in the US and Europe that...

  • Page 5
    ... and low-emission electric vehicles, hybrid vehicles, diesel engine vehicles and fuel-cell vehicles. In the Motorcycle segment, the Group will be aiming at recovering its presence in the motorcycle market by uniting the planning, technology and sales functions and by developing new products that...

  • Page 6
    ...Financial Highlights SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Years ended March 31, 2012 and 2011 Net sales ...Net income...Net income per share: Primary ...Fully diluted ...Cash dividends per share...Net assets ...Total current... exchange rate on March 30, 2012. Net Sales Years...

  • Page 7
    ... units) (ATV included) Overseas Japan 2008 2009 2010 2011 2012 2,841 2,993 2,743 2,550 2,400 174 549 312 162 2,904 185 2,735 2,574 3,391 3,305 Productiou iu overseas Productiou iu Japau Total 2012 Perceutage of Net Sales By Busiuess 2012 Net Sales By Market Other North 7.3% America Europe...

  • Page 8
    ... Eco mini passenger car. Thanks to fuel-saving technologies developed by Suzuki, the Alto Eco gives fuel economy of 30.2km/L in the JC08 test cycle. It is the most fuel-efficient nonhybrid petrol vehicle in Japan. • Also in December 2011, Suzuki launched the new Swift Sport compact car. This model...

  • Page 9
    ... of an automobile engine plant in Indonesia (a nation whose automobile and motorcycle markets are growing). The company also decided to build another automobile plant in Vietnam. • Suzuki began offering new products. The company began producing and selling the new Swift in Thailand. It also...

  • Page 10
    ... SX4 SPLASH (manufactured at Magyar Suzuki Corporation Ltd. in Hungary) SWIFT DZIRE (manufactured at Maruti Suzuki India Limited in India) GRAND VITARA ERTIGA (manufactured at Maruti Suzuki India Limited in India and PT. Suzuki Indomobil Motor in Indonesia) KIZASHI 8 SUZUKI MOTOR CORPORATION

  • Page 11
    ... partly to growth in sales of the Let's4 and other models with engine displacements up to 50cm3 • Suzuki launched its first electric scooter, the e-Let's, in January 2012. The e-Let's offers the same manoeuvrability and user-friendliness as a scooter with an engine displacement up to 50cm3. Plus...

  • Page 12
    ... key ASEAN countries grew by 1% year-on-year to 768,000 units. (Suzuki's sales declined in Indonesia but grew in Thailand and Vietnam.) Suzuki's sales in India grew by 20% year-on-year to 339,000 units thanks mainly to demand for scooters. Toyokawa Plant Motorcycles and outboard motors assembling...

  • Page 13
    ... 650 ABS in Europe and North America. Suzuki pursued sales growth in Asia by launching the backbone-frame GW250 in China, the nex scooter in the ASEAN market, and the Swish 125 scooter in India. Suzuki took part in major productionmodel races in Europe and the United States. A GSX-R model won the...

  • Page 14
    ...-power model, which delivers 220.7kW/300PS). The Suzuki DF300AP (the first outboard motor to combine standard and counter-rotation operation) won the National Marine Manufacturers Association's Innovation Award at the Miami International Boat Show in February 2012. DF2.5 DF50A DF300AP Suzuki...

  • Page 15
    ... develops and manufactures fuel-cell systems. The joint-venture company is called SMILE FC System Corporation. * Based on Suzuki research in November 2011. ** Verified by Japan's Ministry of Land, Infrastructure, Transport and Tourism. Alto Eco e-Let's electric scooter Environmental Symbol Suzuki...

  • Page 16
    ... have made it an ideal means of transport on Japanese roads. Plus, the Carry is attractively priced and economical to run. It has established a strong position in the market for commercial minivehicles. Suzuki marked the Carry's 50th birthday by launching the Carry KC Limited. This version is the...

  • Page 17

  • Page 18
    ... great fuel economy. * Based on Suzuki research in February 2012 on two-box mini passenger cars with overall heights of 1,550mm or more. Launch_of_Suzuki_Kizuna_Carry_Caravan_ Events_Around_Japan_ For the second year running, Suzuki began supporting test-ride and display events at Suzuki Bike Shops...

  • Page 19
    ... [AMERICA] USA USA Canada Mexico Colombia [ASIA] India India Pakistan Indonesia Thailand Thailand Malaysia Philippines Cambodia China Vietnam Taiwan [OCEANIA] Australia New Zealand [AFRICA] South Africa Suzuki International Europe GmbH Suzuki Motor España, S.A.U. Suzuki Motor Iberica, S.A.U. Suzuki...

  • Page 20
    ...main businesses are manufacturing and marketing of motorcycles, automobiles, marine & power products, motorized wheelchairs, electro senior vehicles and houses, further developing the businesses of logistics and other services related to the respective operations. The position of the group companies...

  • Page 21
    ... • Suzuki Motor Co., Ltd. Marketing companies: Logistics services: Marine and Power products, etc Consolidated subsidiary • Suzuki Transportation & Packing Co., Ltd. Consolidated subsidiaries • Suzuki Motor Sales Kinki Inc. • Suzuki Motor Sales Tokyo Inc. • American Suzuki Motor Corp. and...

  • Page 22
    ... SECTION CONTENTS Management policy...21 Financial review ...27 Five-Year Summary...31 Consolidated Financial Statements ...32 Consolidated Balance Sheets ...32 Consolidated Stategents of Incoge and Consolidated Stategents of Cogprehensive Incoge ...34 Consolidated Stategents of Changes in Net...

  • Page 23
    ... and low-emission electric vehicles, hybrid vehicles, diesel engine vehicles and fuel-cell vehicles. In the Motorcycle segment, the Group will be aiming at recovering its presence in the motorcycle market by uniting the planning, technology and sales functions and by developing new products that...

  • Page 24
    ...formulates basic policies. And The Company has established the Corporate Planning Office as a dedicated department to materialize the policies. Besides the above, The Company had stipulated the term of office of Directors to be for one year in order to clarify their man- 22 SUZUKI MOTOR CORPORATION

  • Page 25
    ...department. The audit department and company auditors exchange information with organization specialized in internal audit, which consists of legal, finance and information system department. (c) Function, role and status of Outside Director In order to strengthen supervision and audit to management...

  • Page 26
    ... other rules of The Company, and mutually supervise their execution of duties through meetings of the Board of Directors, etc. And The Company established the "Suzuki Corporate Ethics Rules" (April, 2002) which lays out a set of basic points for Directors and employees to act in a fair and faithful...

  • Page 27
    ... in each Director's office, duties and so on. Regarding stock option as compensation, after approval of amount limit of remuneration related to subscription rights to shares, Board of Directors decide allocation of subscription rights to shares to each director. SUZUKI MOTOR CORPORATION 25

  • Page 28
    ...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, 2012. Seimei Audit Corporation...

  • Page 29
    ... Asia Sales unit increased in India, Thailand and Vietnam as to motorcycle, and in Indonesia, Thailand, Pakistan and other areas as to automobile. But sales amount decreased by ¥79.4 billion (8.4%) to ¥869.2 billion year-on-year due to decreased sales of automobile in India and the exchange rate...

  • Page 30
    ...covered mainly by our own funds. 3. Significant accounting policies For information regarding significant accounting policies, please refer to the Notes to Consolidated Financial Statements. * : An amount less than 100 million yen has been rounded off in "Financial review" section. 28 SUZUKI MOTOR...

  • Page 31
    ... product prices 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...

  • Page 32
    Financial review (4) Fluctuations of exchange rates and interest rates We export 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 ...

  • Page 33
    ... 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 ¥82.19 = U.S.$1, the prevailing exchange rate as of March 30, 2012. SUZUKI MOTOR CORPORATION 31

  • Page 34
    ... Consolidated Balance Sheets As of March 31, 2012 and 2011 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 receivables-trade...

  • Page 35
    ...Other...Total current liabilities ...Noncurrent liabilities: Bonds with subscription rights to shares *NOTE 5 ...Long-term loans payable *NOTE 5 ...Provision for retirement benefits *NOTE 7 ...Provision for directors' retirement benefits...Provision for disaster ...Deferred tax liabilities ...Other...

  • Page 36
    ... Financial Statements Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Consolidated Statements of Income) Years ended March 31, 2012 and 2011 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Net sales ...Cost of sales ...Gross profit...Selling...

  • Page 37
    Consolidated Financial Statements (Consolidated Statements of Comprehensive Income) Years ended March 31, 2012 and 2011 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Income before minority interests ...Other comprehensive income Valuation difference on available-for-sale securities ......

  • Page 38
    Consolidated Financial Statements Consolidated Statements of Changes in Net Assets Years ended March 31, 2012 and 2011 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Balance as of March 31, 2010 Issuance of new shares...Dividends from surplus...Net income ...Purchase of treasury stock ......

  • Page 39
    ... Statements of Cash Flows Years ended March 31, 2012 and 2011 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Cash flows from operating activities Income before income taxes...Depreciation and amortization ...Impairment loss ...Increase (decrease) in provision for retirement benefits...

  • Page 40
    ... 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 Financial Services Agency as required by the Financial Instruments and Exchange Act...

  • Page 41
    ...Property, plant and equipment (excluding lease assets) ...Mainly declining balance method for The Company and domestic subsidiaries and mainly straight-line method for foreign subsidiaries Main durable years are as follows Buildings and structures 3 to 75 years Machinery, equipment and vehicles 3 to...

  • Page 42
    ... investment policies of pension assets 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...

  • Page 43
    ... by forward exchange contract in principle. Investment securities are mainly stocks of companies with which the Group has business relationship, and as for listed stocks, the Group quarterly identifies those fair values and reports them to the Board of Directors. Most of accounts payable-trade are...

  • Page 44
    ... - (220) - - (299) (737) (1,257) - - (Amount: Thousands of U.S. dollars) 2012 Carrying amount $3,548,731 3,091,205 Fair value $3,548,731 3,091,606 Difference $ - 400 Cash and deposits Notes and accounts receivables-trade Short-term investment securities and Investment securities Available-for-sale...

  • Page 45
    ...-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 those fair values...

  • Page 46
    Consolidated Financial Statements *3. The amounts to be redeemed after the account settlement date of securities with maturities among available-for-sale securities Millions of yen 2012 Within one year More than one year Within one year 2011 More than one year Bonds Corporate bonds ...Other ......

  • Page 47
    Consolidated Financial Statements (c) Securities a. Available-for-sale securities quoted at the stock exchange as of March 31, 2012 and 2011 Millions of yen 2012 Acquisition cost Carrying amount Difference Securities for which the carrying amount exceeds the acquisition costs Stocks...Bonds ......

  • Page 48
    ...sales of available-for-sale securities ...¥73,822 9,650 - 2011 ¥387,075 372 - 2012 $898,195 117,412 - c. Available-for-sale securities redeemed during 2012 and 2011 Millions of yen Thousands of U.S. dollars 2012 Amounts redeemed ...¥9,995 2011 ¥ - 2012 $121,608 46 SUZUKI MOTOR CORPORATION

  • Page 49
    ...Interest rate related transactions (non-market transactions) Type Interest rate swaps Pay fixed receive floating Total Contract/ notional amount 2012 Amount due after Fair value one year - - - - - - - - ¥ 5,255 5,255 ¥ 2,627 2,627 ¥ (208) (208) ¥ (208) (208) SUZUKI MOTOR CORPORATION 47

  • Page 50
    Consolidated Financial Statements Commodity-related transactions (market transactions) Type Commodity Futures contract Buying Total Contract/ notional amount 2012 Amount due after Fair value one year Gain (loss) Contract/ notional amount (Amount: Millions of yen) 2011 Amount due after Fair value ...

  • Page 51
    ... and 2011 Currency related transactions Type 2012 Contract/ Amount due notional amount after one year Fair value (Amount: Millions of yen) 2011 Contract/ Amount due notional amount after one year Fair value Foreign currency forward contracts Selling (Principal hedged item: Accounts receivable-trade...

  • Page 52
    ...¥ - - ¥ - - (Amount: Thousands of U.S. dollars) Type Principle accounting 2012 Contract/ Amount due notional amount after one year Fair value Commodity Futures contract (Principal hedged item: Raw material and supplies) Buying $ 11,337 $ - Total 11,337 - $ 710 710 50 SUZUKI MOTOR CORPORATION

  • Page 53
    ...2012 Short-term loans payable and current portion of long term loans payable Secured ...Unsecured ...Lease obligations due within one year ...Unsecured zero coupon convertible bonds with 130% call option in yen due 2013...¥ - 222,432 47 149,975 ¥372,455 Long-term debt as of March 31, 2012 and 2011...

  • Page 54
    ... U.S. dollars Long-term loans payable ...Other (noncurrent liabilities) ... ¥ 375 678 ¥1,054 $ 4,568 8,260 $12,828 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, 2012 and 2011 were...

  • Page 55
    ...the calculation standard for the retirement benefit obligation a. Allocation method 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 : Straight line basis : 2012 Mainly...

  • Page 56
    ... and Social Structures" (Act No.114 of 2011) and the "Act on Special Measures for Securing Financial Resources Necessary to Implement Measures for Reconstruction Following the Great East Japan Earthquake" (Act No.117 of 2011), effective statutory tax rate used in calculation of deferred tax assets...

  • Page 57
    ...in "retained earnings" on the consolidated balance sheet and are not shown separately. According to the Companies Act, the articles of incorporation allows to repurchase treasury stock and dispose of such treasury stock by resolution of meeting of the board of directors. SUZUKI MOTOR CORPORATION 55

  • Page 58
    ...071) 9,506 ¥ (48,785) $ (593,572) NOTE 14: Cash dividends Dividends paid in the current consolidated fiscal year Resolution Meeting of the Ordinary General Board of Directors Meeting of Shareholders held on November 7, 2011 held on June 29, 2011 3,927 million yen 3,927 million yen 7.00 yen 7.00...

  • Page 59
    ... of The Company. 9. Matters relating to subrogation payment None Resolution was made at the meeting of board of directors held on June 28, 2012 on grant of stock options as compensation same to mentioned above except number of subscription rights to shares (120) to 6 managing officers who does...

  • Page 60
    ...to grasp information of business structure and management environment of the Group more accurately. Main products and services of each segment are as follows: Segment Motorcycle Automobile Marine and Power products, etc. Main products and services Motorcycles, All terrain vehicles Mini vehicles, Sub...

  • Page 61
    ... to the characteristic of products and services "Motorcycle", "Automobile" and "Marine and Power products, etc." to grasp information of business structure and management environment of the Group more accurately. As a result, compared to previous classification sales of the FY 2010 decreased by ¥21...

  • Page 62
    ...location of The Company and its consolidated subsidiaries (Years ended March 31) Millions of yen 2012 Japan Europe North America Asia Other areas* Eliminations Consolidated Net Sales: Net sales to external customers...Â¥1,185,782 Internal net sales... and South America. 60 SUZUKI MOTOR CORPORATION

  • Page 63
    ... tsunami in Tokai and Tonankai Earthquake are expected to cause great damage, and on idle asset was posted. The recoverable amount is measured by net selling price or value in use, and the land value is evaluated by price calculated on a rational basis. SUZUKI MOTOR CORPORATION 61

  • Page 64
    Consolidated Financial Statements Independent Auditor's Report To the Board of Directors of Suzuki Motor Corporation We have audited the accompanying consolidated financial statements of Suzuki Motor Corporation and its subsidiaries, which comprise the consolidated statement of financial position ...

  • Page 65
    Non-Consolidated Financial Statements Non-Consolidated Balance Sheets As of March 31, 2012 and 2011 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 66
    ... dollars 2012 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 bonds with subscription rights to shares ...Accrued expenses ...Income taxes payable...

  • Page 67
    ... Statements of Income Years ended March 31, 2012 and 2011 Millions of yen Thousands of U.S. dollars SUZUKI MOTOR CORPORATION Net sales ...Cost of sales ...Gross profit ... 2012 ¥1,383,269 1,076,187 307 ,082 2011 ¥1,409,205 1,104,394 304,810 2012 $16,830,146 13,093,896 3,736,249 Selling...

  • Page 68
    ANNUAL REPORT 2011 Printed in Japan