Suzuki 2013 Annual Report Download

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Table of contents

  • Page 1

  • Page 2

  • Page 3
    ...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 Highlights _____ 4 Year in Review...

  • Page 4
    ...automobile marketing business in the US, the Group was able to increase the net income by covering the loss. The Company has decided to distribute year-end dividends amounting to ¥10.00 per share for this fiscal year (¥8.00 per share for the previous fiscal year). As a result, the annual dividends...

  • Page 5
    .... In addition to enhancement of next generation environmental technology in "SUZUKI GREEN Technology", the Group will continue to tackle global environmental problem based on newly instituted "Suzuki Environmental Plan 2015" and "Suzuki Biodiversity Protection Guideline". -Disaster prevention While...

  • Page 6
    Financial Highlights Financial Highlights SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Years ended March 31, 2013 and 2012 Net sales ...Net income...Net income per share: Primary ...Fully diluted ...Cash dividends per share...Net assets ...Total current assets...Total assets ......

  • Page 7
    ... Sales By Market Other 169,891 Marine & Power Products, etc. 1.9% Motorcycle 8.9% North 6.6% America Europe 95,552 286,524 11.1% 3.7% Japan 1,040,948 40.4% Automobile 89.1% Asia 985,399 38.2% (Year ended March 31, 2013) (Year ended March 31, 2013, Millions of yen) SUZUKI MOTOR CORPORATION...

  • Page 8
    ...in fiscal 2012 surged by 13% yearon-year to 672,000 units. Key factors supporting the sales growth were the government subsidies for purchases of environment-friendly models in the first half of the fiscal year and Suzuki's sales-promotion efforts for new models in the second half. Suzuki's sales of...

  • Page 9
    ...year in a row, and its net sales reached a record high. • In November 2012, Suzuki's US subsidiary announced its decision to withdraw from automobile sales and focus its business on motorcycles, ATVs, and outboard motors. Suzuki consequently established a new company on April 1, 2013. Iwata Plant...

  • Page 10
    Year in Review ERTIGA New SX4 SWIFT 8 SUZUKI MOTOR CORPORATION

  • Page 11
    ... new model made in China) in Japan in July 2012. A surge in purchases by young customers who were new to motorcycling supported strong growth in sales of models with engine displacements from 126cm3 to 250cm3 . • Suzuki began devoting greater effort to boosting its sales of models with engine...

  • Page 12
    ... in North America. Suzuki's sales in the six key ASEAN countries (Indonesia, Thailand, Vietnam, the Philippines, Malaysia, and Cambodia) fell by 15% year-on-year to 651,000 units owing partly to Indonesia's introduction of minimum down payments for motorcycle loans. Suzuki's sales in China fell by...

  • Page 13
    ... a number of new models: the Hayabusa, INTRUDER C1500T, and BURGMAN 650/Executive for Europe and North America; and the Let's scooter for Indonesia. • In November 2012, Suzuki held an opening ceremony for its new motorcycle plant in the Philippines. • In January 2013, cumulative production of...

  • Page 14
    ... DF300 (the highestpower model, which delivers 220.7kW/300PS). Suzuki was selected as the official supplier of outboard motors to the 2012 London Olympic and Paralympic games. Suzuki's outboard motors were used on the support boats at aquatic events. Also, 55 Suzuki outboards powered boats in Queen...

  • Page 15
    ... directly related to our products. For instance, we promote energy savings and green purchasing in our offices, give our workers environmental education, and support social action programmes in local communities. SUZUKI ENVIRONMENTAL & SOCIAL REPORT SUZUKI AIMS TO BECOME A COMPANY LOVED AND TRUSTED...

  • Page 16
    ... priced. The GSR250 is produced in China by the joint-venture company Changzhou Haojue Suzuki Motorcycle Co., Ltd. It is also sold in China, Europe, and Central and South America as GW250/INAZUMA. May 2012 Release of Fuel-Efficient Outboard Motor DF250AP Suzuki has released a new four-stroke...

  • Page 17
    .../ATV and outboard motor businesses for their sales expansion. As for the automobile business, supply of parts and service is succeeded. Suzuki's Indian subsidiary, Maruti Suzuki India, reported that its wholesale sales had grown by 6.6% year-on-year to 1,063,599 units in 2012. The company's annual...

  • Page 18
    ... plant located in Yangon while proceeding with the development of human resources, it is planned to expand its automobile production and sales in Myanmar, as the infrastructure development advances in line with the economic liberalization. March 2013 Release of the Suzuki 2015 Environmental Plan...

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

  • 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
    ... Motor Maruti Suzuki India Ltd. Pak Suzuki Motor Co.,Ltd. Suzuki Manufacturing of America Corp. Suzuki Motorcycle India Private Ltd. Thai Suzuki Motor Co.,Ltd. Suzuki Motor (Thailand) Co.,Ltd. Suzuki Philippines Inc. Suzuki Motor de Colombia S.A. Domestic Manufacturing Companies Suzuki Auto Parts...

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

  • Page 23
    ... control system, The Company aim to maintain and manage the system properly by observing basic policy which is resolved by board of Directors based on Company act of Japan, and Internal control reporting system based on Financial Instruments and Exchange Act of Japan. SUZUKI MOTOR CORPORATION 21

  • Page 24
    ... involving 4 Executive Vice President as members, important missions for management at each department are cross-functionally and comprehensively reviewed and basic concepts are adjusted and established. In order to embody the said basic concepts, The Company has Corporate Planning Office. (Various...

  • Page 25
    ... of management structures, conducts guidance and supports for compliance with the laws, regulations and rule and promotes efficiency and standardization of their business. Company Auditors adjust audit plans and auditing themes of the audit department, attend its audit and receive reports and...

  • Page 26
    ... of the management of The Company. The Company concluded that all 5 members of Outside Director/Company Auditor have no possibility of causing conflict of interest between them and shareholders, and filed them as independent director/auditor under the rules of the Tokyo Stock Exchange, Inc. As...

  • Page 27
    ... structure. And our audit department helps to make rules for the subsidiaries, conducts guidance, supporting and auditing for their regulatory compliance. It also promotes efficiency and standardization of their business. (4) Remuneration for Directors and Company Auditors for current fiscal year...

  • Page 28
    ..., 2013. Seimei 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, 2013. 26 SUZUKI MOTOR...

  • Page 29
    ... billion (31.5%) to ¥150.6 billion year-on-year, mainly due to the increase of income in India, Indonesia, and the Japanese domestic automobile business. (c) Marine and Power products, etc The net sales increased by ¥1.8 billion (3.6%) to ¥50.2 billion year-on-year. Operating income decreased by...

  • Page 30
    ... 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 CORPORATION

  • Page 31
    ... or new application of tax systems in each country may also affect the performance and financial conditions of The Group. We are facing competitions with rival companies in every global market where we conduct our businesses. As the automobiles and motorcycles industries in the world are globalized...

  • 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 ¥94.05 = U.S.$1, the prevailing exchange rate as of March 29, 2013. SUZUKI MOTOR CORPORATION 31

  • Page 34
    Consolidated Financial Statements Consolidated Balance Sheets As of March 31, 2013 and 2012 Millions of yen Thousands of U.S. dollars SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES ASSETS Current assets: Cash and deposits *NOTE 4 ...Short-term investment securities *NOTE 4 ...Receivables:...

  • Page 35
    Consolidated Financial Statements Millions of yen Thousands of U.S. dollars 2013 LIABILITIES AND NET ASSETS Current liabilities: Accounts payable-trade *NOTE 4 ...Short-term loans payable * NOTE 4 and 5 2012 2013 ¥ 350,472 171,790 35,299 - 21,420 155,519 5,521 144,592 884,616 ¥ 354,899 170,...

  • Page 36
    ... Financial Statements Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Consolidated Statements of Income) Years ended March 31, 2013 and 2012 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, 2013 and 2012 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, 2013 and 2012 Millions of yen SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Balance as of March 31, 2011 Dividends from surplus .. Net income ...Purchase of treasury stock ...Disposal...

  • Page 39
    Consolidated Financial Statements Consolidated Statements of Cash Flows Years ended March 31, 2013 and 2012 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Cash flows from operating activities Income before income taxes...Depreciation and amortization ...Impairment loss ...Increase (...

  • Page 40
    ... 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 of Japan...

  • Page 41
    ... income reasonably. If the estimated amount of future taxable income decrease, deferred tax assets may decrease and income taxes expenses may be posted. Consolidated tax payment has been applied to The Company and its domestic wholly owned subsidiaries since FY 2011. SUZUKI MOTOR CORPORATION 39

  • Page 42
    Consolidated Financial Statements (l) Retirement benefits In order to allow for payment of employees' retirement benefits, based on estimated amount of retirement benefits liabilities and pension assets at the end of the current consolidated fiscal year, the allowable amount which occurs at the ...

  • 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
    ...,066 2012 Fair value ¥291,670 254,099 Difference ¥ - 32 Cash and deposits Notes and accounts receivables-trade Short-term investment securities and Investment securities Available-for-sale securities Investments in affiliates Total of assets Accounts payable-trade Short-term loans payable Current...

  • Page 45
    ... of deposits are approximately equal to the book values, book values are used as fair values. b. Notes 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...

  • Page 46
    Consolidated Financial Statements *3. The amounts to be redeemed after the account settlement date of monetary receivables and available-for-sale securities Millions of yen 2013 Within one year 1-5 years 5-10 years Within one year 2012 1-5 years 5-10 years Cash and deposits Notes and accounts ...

  • Page 47
    ...-for-sale securities sold during 2013 and 2012 Millions of yen Thousands of U.S. dollars 2013 Amounts sold ...Gains on sales of available-for-sale securities ...Loss on sales of available-for-sale securities ...¥64,127 - - 2012 ¥73,822 9,650 - 2013 $681,843 - - SUZUKI MOTOR CORPORATION 45

  • Page 48
    ... (29,483) $(28,766) Millions of yen 2012 gain (loss) Contract/ notional amount Amount due after one year Fair value gain (loss) Cross currency interest rate swap transactions (non-market transactions) 2013 Type Pay floating receive floating Pay INR receive USD Total Contract/ notional amount Amount...

  • Page 49
    ... Financial Statements Commodity-related transactions (market transactions) 2013 Type Commodity Futures contract Buying Total Contract/ notional amount Amount due after one year Fair value gain (loss) Contract/ notional amount 2012 Amount due after one year Millions of yen gain (loss) Fair value...

  • Page 50
    Consolidated Financial Statements Thousands of U.S. dollars 2013 Type Contract/ Amount due Fair value notional amount after one year Foreign currency forward contracts (Principal hedge accounting) Selling USD $237,842 - $ 7,930 EUR 200,981 - (1,389) CAD 16,831 - (319) AUD 31,278 - (1,609) NZD 5,486...

  • Page 51
    ... - ¥(41) Type Thousands of U.S. dollars 2013 Type Contract/ Amount due Fair value notional amount after one year Commodity futures contract (Principle hedge accounting) Buying $5,708 - $(437) Total $5,708 - $(437) Fair value ¥58 ¥58 Fair value $41,577 (376) $41,201 SUZUKI MOTOR CORPORATION 49

  • Page 52
    Consolidated Financial Statements NOTE 5: Short-term borrowings and long-term debt Short-term borrowings as of March 31, 2013 and 2012 consisted of the following. The annual interest rates of short-term borrowings as of March 31, 2013 were from 0.22 percent to 12.25 percent. Thousands of U.S. ...

  • Page 53
    Consolidated Financial Statements The aggregate annual maturities of long-term debt, excluding other interest-bearing debt, outstanding as of March 31, 2013 were as follows: Year ending March 31 2015 ...2016 ...2017 ...2018 ...Thereafter...Millions of yen Thousands of U.S. dollars ¥ 31,446 87,234...

  • Page 54
    ... 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 : 2013 Mainly 2.00% 2012 Mainly 2.00% : 2013 1.50% 2012 1.50% : 2013 Mainly 0.77% 2012 Mainly 0.70% : Mainly 15 years To...

  • Page 55
    .... 2013 Statutory tax rate...Valuation allowance ...Effect of change of tax rate ...Tax credit ...Permanent difference (exclusion from gross revenue) ...Other...Effective tax rate ...37.2% 9.0% 2.7% (5.9%) (2.6%) (5.7%) 34.7% 2012 39.8% 0.9% 11.4% (5.5%) (1.8%) 0.3% 45.0% SUZUKI MOTOR CORPORATION 53

  • Page 56
    Consolidated Financial Statements NOTE 9: Research and development costs Research and development costs included in selling, general and administrative expenses, for the years ended March 31, 2013 and 2012 were as follows: Millions of yen Thousands of U.S. dollars 2013 Research and development ...

  • Page 57
    ... date was in the next fiscal year Resolution Ordinary General Meeting of Shareholders held on June 27,2013 Total amount of cash dividends Cash dividends per share Record date Effective date ¥5,610 million ¥10.00 $59,651 thousand $0.106 March 31, 2013 June 28, 2013 SUZUKI MOTOR CORPORATION 55

  • Page 58
    ... Financial Statements NOTE 14: Stock option plan The Company adopts stock option plan by using subscription rights to shares. The plan was adopted at the 146th Ordinary General Meeting of Shareholders and meeting of the board of Directors held on June 28, 2012 and June 27, 2013 based on The Company...

  • Page 59
    ...Automobile Marine and Power products, etc. 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 2. Methods of measurement for the amounts of net sales...

  • Page 60
    Consolidated Financial Statements Millions of yen 2012 Motorcycle Automobile Marine & Power products, etc. Adjustment Consolidated Net Sales: Net sales to external customers ...Segment profit (loss) ...Segment assets ...Other content: Depreciation ...Amortization of goodwill...Impairment loss ......

  • Page 61
    ...sales, operating income or loss based on location of The Company and its consolidated subsidiaries (Years ended March 31) American Suzuki Motor Corporation, a former subsidiary of Suzuki Motor Corporation which distributed automobiles, motorcycles, ATVs, marine products and related parts/accessories...

  • Page 62
    Consolidated Financial Statements (b) The amount of net sales based on external customers (Years ended March 31) Millions of yen 2013 Japan India Other Consolidated Net sales ... ¥1,040,948 ¥647,390 ¥889,977 ¥2,578,317 Millions of yen 2012 Japan India Other Consolidated Net sales ... ¥...

  • Page 63
    ...'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 balance sheet as at March 31, 2013, and the consolidated statement of income, statement...

  • Page 64