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2 SUZUKI MOTOR CORPORATION
A Message from the Management
Management Results of this Fiscal Year
The management environment of the Group for FY2012 was in a
worrying situation with slowdown of economy in Asia in addition
to economic stagnation in Europe. On the other hand, there is a
growing expectation for economic recovery against a background
of sign of economic recovery in the United States, easing of
extreme yen appreciation and eect of economic stimulus mea-
sures in Japan.
Under these circumstances, the Japanese domestic net sales
exceeded ¥1 trillion for the rst time, which increased by ¥54.1
billion (5.5%) to ¥1,040.9 billion compared to the previous scal
year. As for the overseas, the net sales increased by ¥12.0 billion
(0.8%) to ¥1,537.4 billion year-on-year by covering the impact of
the exchange conversion due to the yen appreciation, and the
economic stagnation in Europe, such as with the increase of au-
tomobile sales in Asia. As a result, the consolidated net sales of
the FY2012 (April 2012 to March 2013) increased by ¥66.1 billion
(2.6%) to ¥2,578.3 billion year-on-year.
In terms of the consolidated income, the operating income in-
creased by ¥25.3 billion (21.2%) to ¥144.6 billion year-on-year,
and the ordinary income increased by ¥25.0 billion (19.2%) to
¥155.6 billion year-on-year. The Group was able to increase the
operating income by covering the factors of income decrease
such as the sales decrease in Europe and the impact of the ex-
change rate, with the factors of income increase such as the in-
crease of automobile sales in Japan and Asia, and cost reduction.
Net income became the highest ever, which increased by ¥26.5
billion (49.2%) to ¥80.4 billion year-on-year. Although there was
loss on liquidation of subsidiaries and aliates in connection with
the winding down of 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 scal year (¥8.00 per share
for the previous scal year). As a result, the annual dividends will
be ¥18.00 per share and up by ¥3.00 per share from the previous
scal year.
Outstanding Issues
The Group set a basic policy of “We must use our knowledge and
try harder to break out of the present situation” and is united as
one to tackle following problems amid challenging condition.
-Product development
The Group set “Create a Wow! Beyond customer expectations” as
a vision for the Group in development of products. The Group will
continue to develop products that would fulll “driving pleasure”,
“fun to use”, and “pride of ownership”.
-Strengthening of research and development
The Group will make eort to strengthen its ability of research and
development such as environment technology, fuel ecient tech-
nology, weight reduction technology and safety technology. Also,
the Group will make eort to manufacture cars with lower cost by
improving eciency of development by integrating engine, pow-
ertrain and platform, and cost reduction.
-Strengthening and expansion of sales network
To respond to intensifying competition at various regions and
products, the Group will be expanding and strengthening its sales
network both in Japan and overseas, and execute marketing ac-
tivities in a close contact with the market.
-Strengthening of manufacturing capability
Based on the concept of “local production for local consump-
tion,” the Group will continue to strengthen manufacturing out-
side Japan. Especially in Asia, which has a growing demand for
automobiles, the Group will strive to increase the ratio of in-
house manufacturing, expand global procurement and enhance
production capability at respective local markets. Moreover, along
with the advancement of economic cooperation among dierent
regions through FTA and the trend of the foreign currency market,
the Group will also work to optimize the balance of manufacturing
activities in and outside Japan.
A Message from the Management
In issuing our 2013 Annual Report, we wish to extend our greetings to you.