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SUZUKI MOTOR CORPORATION 27
SUZUKI MOTOR CORPORATION 27
Financial review
1. Operating results
The management environment of the Group for FY2011 continues to be in an unpredictable situation with bad influence of financial
turmoil in Europe on global economy. The domestic economy is somewhat recovering from the stagnation following the Great East Japan
Earthquake, but in severe situation with slowdown of overseas economy, lengthening yen appreciation, and further, surging oil price and
other factors.
Under these circumstances, the Japanese domestic market sales was able to accomplish its highest ever net sales at ¥986.8 billion (up
5.3% year-on-year) by recovering in the second half from the sales drop of the first half due to the impact of the Great East Japan Earth-
quake. As for the overseas, the net sales decreased by ¥145.4 billion (8.7%) to ¥1,525.4 billion year-on-year due to the sales drop of the
automobiles in India, in addition to the impact of the yen appreciation. As a result, the consolidated net sales of the FY2011 decreased by
¥96.0 billion (3.7%) to ¥2,512.2 billion year-on-year.
In terms of the consolidated income, the operating income increased by ¥12.4 billion (11.6%) to ¥119.3 billion year-on-year by absorb-
ing the factors of income decrease such as decreased sales and impact of the exchange rate, to the factors of income increase such as
cost reduction, decrease of expenses, and decrease of depreciation. Ordinary income increased by ¥8.1 billion (6.6%) to ¥130.6 billion
year-on-year. Net income increased by ¥8.7 billion (19.3%) to ¥53.9 billion year-on-year by absorbing the increase of tax expense due to
the reversal of deferred tax assets involved with the lowering of tax rate such as the income tax.
(1) The operating results by segment
(a) Motorcycle
Although wholesales in North America increased, mainly due to the decrease of sales in Europe, sales decreased by ¥2.9 bil-
lion (1.1%) to ¥254.8 billion year-on-year. As for the operating income, although it improved by ¥8.4 billion year-on-year, there
was operating loss of ¥2.4 billion due to the impact of the yen appreciation and the floods in Thailand.
(b) Automobile
The Japanese domestic market sales increased year-on-year as a result of recovering from the first half drop due to the
impact of the Great East Japan Earthquake, by strengthening the lineup and working to expand the sales such as by launch-
ing the Alto Eco and the MR Wagon Eco, in addition to the great sales of the Solio. As for the overseas, sales decreased year-
on-year due to the impact of the yen appreciation, decrease of exports especially to Europe, and sales decrease in India.
Consequently, sales of the automobile business decreased by ¥93.0 billion (4.0%) to ¥2,209.0 billion year-on-year. However,
the operating income increased by ¥3.5 billion (3.2%) to ¥114.6 billion year-on-year, mainly due to cost reduction, decrease of
expenses, and decrease of depreciation.
(c) Marine and Power products, etc
Sales of the marine and power products, etc. business was nearly at the same level as the previous fiscal year at ¥48.5 billion,
but the operating income increased by ¥0.5 billion (7.0%) to ¥7.2 billion year-on-year.
(2) The operating results by geographical areas
(a) Japan
The Group had been attempting to cover the sales decrease due to the Great East Japan Earthquake by strengthening the
lineup with the launching fuel efficient automobile. However, due to worsening condition for export caused by the yen appre-
ciation, sales decreased by ¥26.3 billion (1.7%) to ¥1,546.1 billion year-on-year. Operating income increased by ¥26.4 billion
(49.7%) to ¥79.6 billion year-on-year. This was because although there were factors of income decrease such as decreased
sales and impact of the exchange rate, factors of income increase such as decrease of depreciation and improved profitabil-
ity of automobile business in Japan could cover factors of income decrease.
(b) Europe
Sales decreased by ¥26.3 billion (7.9%) to ¥306.7 billion year-on-year. But operating income increased by ¥1.8 billion (442.1%)
to ¥2.2 billion year-on-year mainly due to decrease of expenses.
(c) North America
Sales increased by ¥4.3 billion (4.4%) to ¥101.7 billion year-on-year due to increased wholesale of motorcycle. Operating
income also improved and turned around ¥0.4 billion surplus as a result of ¥2.5 billion improvement from ¥2.2 billion operating
loss in the previous fiscal year.
(d) 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 factor. Operating income also decreased by ¥15.3 billion (32.6%) to ¥31.6 billion
year-on-year due to decrease in profit of Maruti Suzuki India Ltd.
(e) Other areas
Sales increased by ¥2.5 billion (3.3%) to ¥77.6 billion year-on-year. Operating income decreased by ¥1.4 billion (39.3%) to
¥2.2 billion year-on-year.