Suzuki 2015 Annual Report Download

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2015

Table of contents

  • Page 1
    2015

  • Page 2
    Contents Mission Statement _____ 1 A Message from the Management _____ 2 Financial Highlights _____ 4 Year in Review _____ 5 Automobiles _____ 6 Motorcycles _____ 9 Marine Products _____ 12 Others _____ 13 Topics _____ 14 Directors, Officers and Auditors _____ 17 Corporate Governance Issues _____ 18...

  • Page 3
    Mission Statement 1.Develop products of superior value by focusing on the customer 2.Establish a refreshing and innovative company through teamwork 3.Strive for individual excellence through continuous improvement SUZUKI MOTOR CORPORATION 1

  • Page 4
    ... and products, the Group will be expanding and strengthening its sales network both in Japan and overseas, and execute marketing activities in a close contact with the market. -Reconstruction of motorcycle business As for the Motorcycle business, the Group will review its omni- Basic policies for...

  • Page 5
    ...thereby offering value that exceeds customers' expectations. By so doing, The Group will be aiming at recovering its presence in the motorcycle market. -Commitment to global environmental problem Concerning the environmental issues, the Group has been offering minivehicles in Japan and many types of...

  • Page 6
    Financial Highlights Financial Highlights SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Years ended 31 March, 2015 and 2014 Net sales ...Net income...Net income per share: Primary ...Fully diluted ...Cash dividends per share...Net assets ...Total current assets...Total assets ......

  • Page 7
    ...Net Sales By Market (Year ended 31 March, 2015 Millions of yen) Marine & Power Products, etc. 63,033 2.1% Others 268,325 8.9% Motorcycle 250,485 8.3% Europe 372,028 12.3% North America 65,976 2.2% Japan 1,094,611 36.3% Automobile 2,701,942 89.6% Asia 1,214,519 40.3% SUZUKI MOTOR CORPORATION...

  • Page 8
    ... and 2015 RJC Car of the Year. • In December 2014, Suzuki launched a comprehensively enhanced version of the Alto minicar. The new Alto has a simple, stylish exterior design. Also, lower weight and higher powertrain efficiency give it the best fuel economy of any gasoline-engine vehicle in Japan...

  • Page 9
    ... worldwide sales of the Swift (a series that Suzuki launched in 2004) reached four million units. • In October 2014, Suzuki began a series of launches for the Ciaz by putting it on the market in India. • In November 2014, Suzuki launched a completely updated Alto K10. • In January 2015, Suzuki...

  • Page 10
    Year in Review Celerio Ciaz Vitara 8 SUZUKI MOTOR CORPORATION

  • Page 11
    ... a basic model that offers greater practicality. • In March 2015, Suzuki launched the Address 110 scooter. This model has low weight for rider-friendliness around town and an engine that combines great performance with superior fuel economy. GSR250F V-Strom 1000 ABS SUZUKI MOTOR CORPORATION 9

  • Page 12
    ...of Suzuki's Main Overseas Motorcycle Markets Sales of motorcycles in Europe in fiscal 2014 grew by 4% year-on-year to 855,000 units. Sales of motorcycles (including ATVs) in North America grew by 4% to 831,000 units. Sales in the six key ASEAN countries (Indonesia, Thailand, Vietnam, the Philippines...

  • Page 13
    ...2014, Suzuki launched the GIXXER in India. This model earned high praise for its styling and won bike-of-the-year awards from many media organizations. MotoGP First Round Qatar 2015 Intermot Motorcycle Show held in Cologne, Germany GIXXER won many bike-of-the-year awards SUZUKI MOTOR CORPORATION...

  • Page 14
    ...in Europe and North America, while the operating income was at the same level as the previous fiscal year. Overview of Marine Products Suzuki's domestic outboard motor sales in fiscal 2014 fell by 5% year-on-year in volume terms and by 7% year-on-year in net terms. One reason was a hike in the rate...

  • Page 15
    ... installation on its sport cars. The car is sold also in Japan as a British-made minivehicle. Suzuki continues pursuing opportunities and areas of cooperation with other manufacturers where effective use of companies' business resources and mutual benefit can be expected. SUZUKI MOTOR CORPORATION...

  • Page 16
    ... of Suzuki's global automobile sales in this fiscal year were models based on Japanese minicars. Centered in Asia, the Japanese minicar technologies are contributing to the development of motorization and the daily lives in each country. WagonR sold by Pak Suzuki Motor. Class-Topping Fuel Economy...

  • Page 17
    ... and adopted a newly designed engine that offers outstanding fuel economy of 54.8km/L*. The Company offers two versions: the basic Let's (launched in March 2015) and the higher-grade Let's G (launched in December 2014). Each version is affordably priced and meets daily mobility needs for men and...

  • Page 18
    ... Address 110 scooter, which combines a light, riderfriendly frame with superior performance and fuel economy. An Indonesian subsidiary named PT. Suzuki Indomobil Motor is producing the Address 110 as a global small scooter, marketing it in Indonesia and exporting it to Japan, ASEAN countries, Europe...

  • Page 19
    ... (Indonesia) President, Suzuki Motor Sales Kinki Inc. Executive General Manager, Administration / Managing Officer, Human Resources Dept. Executive General Manager, Domestic Marketing / Managing Officer, Domestic Sales Force Promotion Dept. Deputy Executive General Manager, Manufacturing (Production...

  • Page 20
    ... Through fair and efficient corporate activities, The Company always intends to be trusted by all our stakeholders including shareholders, customers, partner companies, local communities and employees, and to be a continuously growing company, while making a further contribution to the international...

  • Page 21
    ... of problems. The Audit Department also helps to make rules for enhancement of management structures, conducts guidance and supports for compliance with the laws, regulations and rules and promotes efficiency and standardization of their business. (Independent Auditor) 2 certified public accountants...

  • Page 22
    ... of the group from our Group in any of the business year in past three years 3. A major business partner of the Group: A company which belongs to the group of the business partner who makes payment 2% or more of our Group's consolidated net sales or provides the Group with 2% or more of loans of its...

  • Page 23
    ... engineering, production or sales shall be handled by each department in accordance with the rules of or manuals on the prevention or handling of such risk. 4) To prepare for the occurrence of disasters, The Company shall develop behavior manual and Business Continuity Plan (BCP), take out insurance...

  • Page 24
    ... and internal rules, etc. and fair and sincere behaviors. It shall also provide guidance, supports and auditing in order to make appropriate rules in accordance with laws and regulations or legal environment of the country where affiliated companies locate. (g) Matters for employees to support the...

  • Page 25
    ... Auditors, exchange information or opinions and ask Accounting Auditors to make reports, when necessary. (4) Remuneration for Directors and Company Auditors for current fiscal year (a) Remuneration paid to Directors and Company Auditors is as follows: (Amount of remuneration: million yen, Number of...

  • Page 26
    ...of remuneration limit (monthly amount) approved at the General Meeting of Shareholders, as the remuneration that is linked to mid-and long-term Company's performance and stock price. Directors shall contribute such type of remuneration to the officer stockholding association every month, acquire the...

  • Page 27
    ... 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 31 March, 2015. Seimei Audit Corporation, The Company's Independent...

  • Page 28
    ...including motorcycles, automobiles and outboard motors. They may also affect the performance and financial conditions of The Group. In addition, we conduct businesses around the world, and our dependency on the overseas manufacturing plants especially in the developing countries of the Asian regions...

  • Page 29
    ...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 countries. Fluctuations of exchange rates may adversely affect the performance and...

  • Page 30
    ... corporate group The corporate group of the Company consists of subsidiaries of 133 companies and affiliates of 35. The main businesses are manufacturing and marketing of motorcycles, automobiles, marine & power products, motorized wheelchairs, electro senior vehicles and houses, further developing...

  • Page 31
    ... (Major companies only) No marks : Subsidiaries : Affiliates Flow of products, parts Flow of services M/C : Motorcycle A/M : Automobile M/P : Marine and Power products, etc. Overseas Manufacturing & Marketing Companies Magyar Suzuki Corporation Ltd. Maruti Suzuki India Ltd. Suzuki Motorcycle India...

  • Page 32
    ... Statements of Income and Consolidated Statements of Comprehensive Income ...36 Consolidated Statements of Changes in Net Assets ...38 Consolidated Statements of Cash Flows...39 Notes to Consolidated Financial Statements ...40 Independent Auditor's Report...65 30 SUZUKI MOTOR CORPORATION

  • Page 33
    ...income in Japan, Indonesia, and Thailand, despite the increase in the income in India. (c) Marine and Power products, etc. The net sales increased by ¥7.0 billion (12.5%) to ¥63.0 billion year-on-year mainly owing to the increase in the sales of the outboard motors in Europe and North America. The...

  • Page 34
    .... 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 "Management Discussion and Analysis" section. 32 SUZUKI MOTOR CORPORATION

  • Page 35
    ...Fully diluted ...Cash dividends per share...Net assets ...Total current assets...Total assets ...Depreciation and amortization... Note: Yen amounts are translated into US dollars for convenience only, at ¥120.17 = US$1, the prevailing exchange rate as of 31 March 2015. SUZUKI MOTOR CORPORATION 33

  • Page 36
    Consolidated Financial Statements Consolidated Balance Sheets As of 31 March 2015 and 2014 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES ASSETS Current assets: Cash and cash equivalents *NOTE 4 ...Receivables: Notes and accounts receivables-trade *NOTE 4 ...Allowance for doubtful accounts ...

  • Page 37
    Consolidated Financial Statements Millions of yen Thousands of US dollars 2015 LIABILITIES AND NET ASSETS Current liabilities: Short-term loans payable *NOTE 4 and 5 ...Accounts payable-trade *NOTE 4 ...Income taxes payable ...Accrued expenses *NOTE 4 ...Provision for product warranties......

  • Page 38
    Consolidated Financial Statements Consolidated Statements of Income and Consolidated Statements of Comprehensive Income (Consolidated Statements of Income) Years ended 31 March 2015 and 2014 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Net sales ...Cost of sales ...Gross profit...Selling...

  • Page 39
    Consolidated Financial Statements (Consolidated Statements of Comprehensive Income) Years ended 31 March 2015 and 2014 SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Income before minority interests ...Other comprehensive income *NOTE 12 Valuation difference on available-for-sale ...

  • Page 40
    ... rights to shares SUZUKI MOTOR CORPORATION AND CONSOLIDATED SUBSIDIARIES Balance as of 31 March 2013 Dividends from surplus .. Net income ...Purchase of treasury stock. Disposal of treasury stock.. Transfer of loss on disposal of treasury stock . Net changes of items other than shareholders...

  • Page 41
    ... short-term loans payable...Proceeds from long-term loans payable ...Repayment of long-term loans payable ...Purchase 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 42
    ...filed with the Financial Services Agency as required by the Financial Instruments and Exchange Act of Japan. The preparation of the consolidated financial statements requires the management to select and adopt accounting standards and make estimates and assumptions that affect the reported amount of...

  • Page 43
    ... 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 15 years SUZUKI MOTOR CORPORATION 41

  • Page 44
    ... the bonds period by using the approximate number of years of the average remaining service period of employees which is based on determination of the discount rate to a single weighted average discount rate reflecting the estimated timing and amount of benefit payment, have been applied from...

  • Page 45
    ...listed stocks, The Group quarterly identifies those fair values and reports them to the Board of Directors. Basically, accounts payable-trade is due within one year. Applications of borrowings are fund for operating capital (mainly short-term) and capital expenditures (long-term), and The Group uses...

  • Page 46
    ...160 2014 Fair value ¥358,851 311,221 Difference ¥ - 527 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 47
    ... 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 are approximately equal to the book values. So book values are used as fair...

  • Page 48
    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 2015 Within 1 year Over 1 year, Within 5 years Over 5 years, Within 10 years Within 1 year 2014 Over 1 year, Within 5 years ...

  • Page 49
    ...-for-sale securities sold during 2015 and 2014 Millions of yen Thousands of US dollars 2015 Amounts sold ...Gains on sales of available-for-sale securities ...Loss on sales of available-for-sale securities ...¥206,255 - - 2014 ¥165,779 17 0 2015 $1,716,364 - - SUZUKI MOTOR CORPORATION 47

  • Page 50
    ... are valued based on market price. Other transactions are valued based on the price offered by financial institutions. a. Derivative transactions to which hedge accounting is not applied as of 31 March 2015 and 2014 Currency related transactions (non-market transactions) 2015 Type Foreign...

  • Page 51
    ... Financial Statements Thousands of US dollars 2015 Type Cross currency interest rate swap Pay floating receive floating Pay INR receive USD Pay fixed receive floating Pay IDR receive USD Pay fixed receive floating Pay IDR receive JPY Total Contract/ notional amount Amount due after one year Fair...

  • Page 52
    Consolidated Financial Statements b. Derivative transactions to which hedge accounting is applied as of 31 March 2015 and 2014 Currency related transactions 2014 2015 Type Contract/ Amount due Contract/ Amount due Fair value notional amount after one year notional amount after one year Foreign ...

  • Page 53
    ...-term $528,418 $528,418 receive floating debt Cross currency interest rate swap (Principle hedge accounting) Pay fixed receive floating Long-term 74,225 33,506 Pay IDR debt receive USD Type Principal hedged item Fair value ¥ - (73) 2 311 - - - ¥240 $ (274) (149) SUZUKI MOTOR CORPORATION...

  • Page 54
    ...long-term debt Short-term debt as of 31 March 2015 and 2014 were as follows. The annual interest rates of short-term debt as of 31 March 2015 were from 0.15 percent to 10.5 percent. Thousands of US dollars Millions of yen 2015 Short-term loans payable and current portion of Long-term loans payable...

  • Page 55
    ... outstanding balance of this contract as of 31 March 2015 and 2014 were as follows: Millions of yen Thousands of US dollars 2015 Commitment line contract total ...Actual loan balance...Variance ¥200,000 - ¥200,000 2014 ¥200,000 - ¥200,000 2015 $1,664,308 - $1,664,308 SUZUKI MOTOR CORPORATION...

  • Page 56
    ... subsidiaries adopt simplified methods for the calculation of retirement benefits. 2 Defined benefit plan (a) Reconciliation of retirement benefit obligation from the opening balance to the closing balance Millions of yen Opening balance of retirement benefit obligation Service cost Interest cost...

  • Page 57
    ... paid Past service cost arised in current fiscal year Others Closing balance of retirement benefit obligation ¥111,096 12,243 ¥123,339 6,638 1,681 886 (4,751) 5,322 301 ¥133,418 $ 924,494 101,882 $1,026,377 55,245 13,994 7,378 (39,542) 44,294 2,505 $1,110,251 SUZUKI MOTOR CORPORATION 55

  • Page 58
    Consolidated Financial Statements (b) Reconciliation of pension assets from the opening balance to the closing balance Millions of yen Thousands of US dollars Opening balance of pension assets Expected return on pension assets Actuarial differences arised in current fiscal year Contribution from ...

  • Page 59
    ... Financial Statements (g) Plan assets a. Major breakdown of pension assets Portion of major components to total pension assets were as follows: Debt securities General account of life insurance companies Others Total 49.0% 37.9% 13.1% 100.0% b. Method to determine long-term expected return on plan...

  • Page 60
    ... as 25% of the capital stock. The Companies Act allows both legal capital surplus and legal retained earnings to be transferred to the capital stock following the approval at an Ordinary General Meeting of Shareholders. The legal retained earnings of The Company and its subsidiaries are included...

  • Page 61
    ... date was in the next fiscal year: Resolution Ordinary General Meeting of Shareholders held on 26 June 2015 Total amount of cash dividends Cash dividends per share Record date Effective date ¥9,537 million ¥17.00 31 March 2015 29 June 2015 $79,368 thousand $0.14 SUZUKI MOTOR CORPORATION 59

  • Page 62
    ...28 June 2012, 27 June 2013 and 27 June 2014 based on The Company Act of Japan. The details of the plan were as follows: 1. Resolution date 28 June 2012 2. Category and number of people to whom stock options are granted 10 Directors of The Company (excluding Outside Directors) 6 Managing Officers who...

  • Page 63
    ... Automobile Marine and Power products, etc. Main products and services Motorcycles, All-terrain vehicles Minivehicles, 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 64
    ... Financial Statements 3. Information about the amounts of net sales, profit or loss, assets and other items by reportable segment (Years ended 31 March) Millions of yen 2015 Motorcycle Automobile Marine & Power products, etc. Adjustment Consolidated Net Sales: Net sales to external customers...

  • Page 65
    ...location of The Company and its consolidated subsidiaries (Years ended 31 March) Millions of yen 2015 Japan Europe Asia Other areas Eliminations Consolidated Net Sales: Net sales to external customers...Internal net sales or transfer... America, Oceania and South America. SUZUKI MOTOR CORPORATION 63

  • Page 66
    ... ¥1,133,289 ¥3,015,461 Millions of yen 2014 Japan India Others Consolidated Net sales ... ¥1,132,732 ¥638,720 ¥1,166,861 ¥2,938,314 Thousands of US dollars 2015 Japan India Others Consolidated Net sales ... $9,108,860 $6,553,717 $9,430,720 $25,093,298 64 SUZUKI MOTOR CORPORATION

  • Page 67
    ... in Japan. The amounts expressed in US dollars, which are provided solely for the convenience of the reader, have been translated on the basis set forth in Note 1 to the accompanying consolidated financial statements. Seimei Audit Corporation Tokyo, Japan 26 June 2015 SUZUKI MOTOR CORPORATION 65

  • Page 68
    ... Main Products 5. Fiscal Year-End 6. Public Accounting Firm 7. Capital and Shareholders Capital Total number of authorized shares Total number of shares issued Number of shareholders Stock Listing Securities Code Ordinary General Meeting of Shareholders Record Dates Shareholders' Register Manager...

  • Page 69
    ... Major Overseas Subsidiaries [Marketing Subsidiaries] 30 directly managed overseas marketing companies [ASIA] India India Pakistan Indonesia Thailand Thailand Malaysia Philippines Cambodia China Vietnam Taiwan Myanmar Maruti Suzuki India Ltd. Suzuki Motorcycle India Private Limited Pak Suzuki Motor...

  • Page 70
    MEMO 68 SUZUKI MOTOR CORPORATION

  • Page 71

  • Page 72
    300 Takatsuka-Cho, Minami-Ku, Hamamatsu-shi, Shizuoka, Japan 432-8611 http://www.globalsuzuki.com ANNUAL REPORT 2015 Printed in Japan