ANNUAL REPORT2018

Contents
A Message from the Management_____________________________________________ 2
Financial Highlights__________________________________________________________ 4
Year in Review_______________________________________________________________ 6
Automobiles_____________________________________________________________ 6
Motorcycles______________________________________________________________ 8
Marine, etc._____________________________________________________________ 10
ESG Information____________________________________________________________ 11
Environmental Initiatives_________________________________________________ 11
CSR Policy______________________________________________________________ 13
Corporate Governance____________________________________________________ 14
Directors, Auditors and Officers_________________________________________ 14
Corporate Governance Issues___________________________________________ 15
Risks in Operations____________________________________________________ 16
Financial Section___________________________________________________________ 18
Company Outline___________________________________________________________ 48—1—
SUZUKI MOTOR CORPORATIONA Message from the Management

A Message from the Management
Outstanding issues

Thank you very much for your continued support.

The automobile industry is undergoing a period of great transformation. In such transformation, it is necessary to open up
the future in long-term outlook by imaging the targeted aspect of 10 years and 15 years ahead, and tracing back to thepresent to think about what should be done from now.
In or around 2030, there is possibility that India would growup to be a market of 10 million units. If we are to maintainthe current market share of 50%, Suzuki would become 5
million units. Suppose the other markets would be 2 million
units, Suzuki as a whole would be 7 million units. This is rather a theoretical figure than a target, but Suzuki will challenge
toward the future growth.
Also, we believe that fulfilling India would lead to fulfilling other markets through globally expanding the models developed
for India.
But still, this is a total frontier for the Company, which would
be more than double the present size. The management andevery single one of our employees need to change the way of
thinking and effectively distribute management resources ofpeople, goods, and capital.
By that means, the activity toward this long-term outlook is achallenge that dedicates future of Suzuki without extension.
Amidst such conditions, the Group is addressing the following
issues.

Management results of FY2017
With respect to the management environment of the Groupfor FY2017, the economy is recovering moderately as awhole. On the other hand, there are concerns about the influence of the US tariff policy, uncertainties about prospects
for the economy of China and developing countries in Asia,and others. In India, an important market for the Group, theeconomy is expanding mainly owing to increase of domestic
consumption. Also in Japan, the economy is recovering moderately on the back of various measures introduced by thegovernment.
Under these circumstances, the consolidated net sales of the
fiscal year (April 2017 to March 2018) increased by ¥587.7
billion (18.5%) to ¥3,757.2 billion compared to the previous
fiscal year. The Japanese domestic net sales increased by¥79.2 billion (7.6%) to ¥1,116.7 billion year-on-year mainly
owing to increase in automobile sales. The overseas net sales
increased by ¥508.5 billion (23.8%) to ¥2,640.5 billion yearon-year mainly owing to increase in automobile and motorcycle sales in markets including India and Europe.
In terms of the consolidated income, the operating income
increased by ¥107.5 billion (40.3%) to ¥374.2 billion year-onyear mainly owing to improvement in profit in Asia, Japan, andEurope. The ordinary income increased by ¥96.1 billion (33.5%)
to ¥382.8 billion year-on-year. The net income attributable toshareholders of the parent increased by ¥55.7 billion (34.9%)
to ¥215.7 billion year-on-year.

n Quality
The quality problem remains unchanged as the most important issue for the Company.
Customer safety and security is the top priority for the Group,
and we are working to develop and produce high-quality
products which customers can use safely and securely and toprovide after-sales services.
In the future, while accurately ascertaining the quality needsof customers, the Group will maintain a high level of quality
awareness in all departments and will continue to make theutmost effort to ensure that customers can use our products
safely and securely.

Basic policies for profit distribution
Under the Mid-Term Management Plan SUZUKI NEXT 100(from FY2015 to FY2019), the Company prioritises investment for growth, and set the dividend payout ratio target to
15% or more.
The Company was able to achieve the FY2019 net sales targetof ¥3,700 billion and operating income margin target of 7% in
the fiscal year, which is ahead of schedule. On the other hand,
improvement of shareholders’ equity ratio remains an important issue.
Taking the above into consideration, the Company applied
the dividend payout ratio target of 15% to the annual dividends, which became ¥74.00 per share, up by ¥30.00 per
share from the previous fiscal year, and to the year-end dividends, which became ¥44.00 per share.
The annual dividends of ¥74.00 per share is the eighth consecutive increase in annual dividends.

—2—
SUZUKI MOTOR CORPORATIONA Message from the Management

Other reforms include reinforcing the scooter category in thegrowing market of India, improving operation rate by expanding ASEAN-produced models within and outside the market,
and consolidating development, production, and sales at theHamamatsu Plant. The Group will aim to maintain its profitablestructure through continuously remaining vigilant with suchmanagement reforms.

n Products and R&D
As for products, along with continuing to introduce uniqueproducts with value exceeding customer expectations, with
2030 in mind, we need to efficiently set development models
while the sales units continue to expand.
As for environmental problems, we not only need to boost
the extension of conventional technologies but initiatives for
new technologies as well. Along with making of small carsand development of high-efficiency powertrain which Suzuki
excels in, we will proactively make efforts in expansion andstrengthening of hybrids and new development of EVs.
Further, we will also work on safety technology and information communications technology such as connected
technology.

n Marine Business
The Group will reinforce and expand its large four-stroke outboard lineup and cultivate the business and leisure markets
to build the world’s top four-stroke outboard brand under thebrand slogan “THE ULTIMATE 4-STROKE OUTBOARD.”n Further ESG (Environmental, Social, and Governance)
Initiatives
As for environment, the Group will apply the Suzuki Environmental Plan 2020 and work for the development and adoptionof environmental technologies and to reduce CO2 emissions.
As for society, we will actively work on product safety andquality, contribution to the community, investment in people,
development of human resources, and work safety, so that
we can respond to expectations by the stakeholders.
As for governance, we will advance our corporate governanceand compliance systems and strengthen our initiatives on
management systems and legal compliance.
The Group will actively take on environmental, social, andgovernance issues and strive to become a group worthy ofthe love and confidence of customers around the world.

n Production
As for production, the Group will work to construct Safety Firstand optimal global production system. In India, in particular,
we will proactively work on strengthening production system
of Gujarat Plant and battery plant from the Make in India pointof view, which is an initiative promoted by the Government ofIndia.
n Sales and Service
The Group will reinforce the sales network and service network globally.
In India, in particular, although we currently have acquired the
majority share in the passenger car sector, we would like tosecure the majority share even in 2030. We will proactively
deal with ways to realise this in detail.

With respect to the case in August 2018 where emission andfuel consumption sample testing result that should be madeinvalid was treated as valid data, we would like to offer oursincere apologies for the concern this matter has caused toour customers and business partners. We will make efforts inpreventive measures through fulfilling checking structure andcarrying out thorough employee education.

n Automobile Business
The Group has positioned Japan at the centre of global automobile development, the base of production.
Our strategy for products in this sector is to concentrate on
the mini vehicle, A, and B segments to match the growing
compact car market worldwide.
As for our regional strategy, we will continue to reinforce ouroperation base with a focus on Asia, such as Japan, India, Indonesia, and Pakistan.

As mentioned before, the activity toward the long-term outlook is a challenge that dedicates future of Suzuki without
extension. The Company as a whole will make efforts toward
this initiative.

n Motorcycle Business
While focussing on the 150cc and up, backbone, and sport
categories, the Group is strengthening the consistency of
the Suzuki brand by ranging the series from large engine displacement motorcycles to small engine displacement motorcycles.

We look forward to the continued support and encouragement of our shareholders and investors.

Representative Director and President
Toshihiro Suzuki—3—
SUZUKI MOTOR CORPORATION

Financial Highlights

Financial Highlights

Years ended 31 Marchn Net sales by geographic region (Millions of yen)
Japan

Asia

EuropeNorth American Net sales by segment (Millions of yen)

OthersAutomobiles

Motorcycles

Marine, etc.

3,757,219

3,757,219

75,053294,210

246,362

62,454
3,180,659

510,6433,015,461
2,938,314
229,69365,084

398,9023,180,659

3,169,542

268,325

266,329

257,585

67,002

56,1153,015,461
2,938,314

63,033

3,169,542

68,253

67,633233,889

206,289

56,046
250,485
266,60265,976
404,722425,332

372,028

1,773,145

1,111,900

1,394,720

1,214,519

1,392,961

3,435,802

2,615,664

1,132,732

1,094,611

1,047,883

1,037,546

2014

2015

2016

2017

n Operating income (Millions of yen)
374,1822,878,515

2,895,619

2016

2017

2,701,942

1,116,764

2014

2018

n Net income attributable toowners of the parent

2015

n Dividends (Yen)
Year-end dividends
Interim dividends
Dividend payout ratio
Dividend payout ratio (excl. gainon sales of investment securities)

215,730
Operating income

Net income (Millions of yen)MarginNet income per share (Yen)2018488.8674
266,685

159,956

17.3%
15.6%

362.54
10.0%
187,747

195,308
179,424

107,484
96,862
191.60

6.0%

6.1%

172.67

2016

2017

2018

2014

2015

44

32

14

2015

15.1%

44

234.98

24

2014

12.1%

116,660
8.4%

6.4%

15.2%
13.6%

12.5%

2016

2017

2018

—4—
SUZUKI MOTOR CORPORATION

27

27
17
17

30

10

10

2014

2015

15

17

2016

2017

2018

Financial Highlights

Years ended 31 Marchn Capital expenditure/Depreciation

		

n ROE

n R&D expenses (Millions of yen)

(Millions of yen)

Capital expenditure

R&D expenses

Depreciation

Ratio of R&D expenses to sales

213,619
198,782

194,457

171,535
168,315

131,539
127,090 125,897 131,031

213,376

ROE

139,390
17.9%
15.4%

163,397

150,877

4.3%

134,377

4.2%

4.1%

4.2%

3.7%

117,188

9.6%

8.7%
6.9%

2014

2015

2016

2017

2018

2014

2015

n Total assets/Net assets/Shareholders' equity ratio

			

2016

2017

Net assets

3,340,828
3,115,985

2,874,074

2017

322,915445,171

294,095

255,037
134,12845.6%

84,472

2,809

103,586

77,751

51,66036,356

38.8%

35.9%

35.4%

1,701,390

2018

366,315

2,702,008

46.2%

2016

Cash flows from operating activities
Cash flows from investing activities
Cash flows from financing activities
Free cash flows

Shareholders’ equity ratio

3,252,800

2015

n Cash flows (Millions of yen)

(Millions of yen)
Total assets

2014

2018

89,505

1,595,227

1,494,357

1,387,041
1,187,703-113,922-120,909-242,435-288,564-286,559-341,585

2014

2015

2016

2017

2018

-520,361

2014

n Automobile production(Thousand units)

n Automobile sales

2015

2016

n Motorcycle production(ATV included)(Thousand units)(Thousand units)

2017

2018

n Motorcycle sales(ATV included)(Thousand units)

3,338
3,043
2,857

3,224

3,074
2,951

2,867 2,861 2,918

Overseas

2,709

Japan
2,367
1,859

1,988
2,090

2,033

2,203

2,556
1,981

2,111

2,022
1,799

1,766

2,231 2,279

1,630
1,480

1,367

1,370

1,852

1,948

1,645
1,358 1,229
998

1,055

861

871

1,580

1,501

1,699

1,478

1,440

1,305

1,520

971
728

756

630

639

668
180

2014 2015 2016 2017 20182014 2015 2016 2017 2018

154

122

141

152

2014 2015 2016 2017 2018

—5—
SUZUKI MOTOR CORPORATION

74

67

61

62

60

2014 2015 2016 2017 2018

Year in Review

Year in Review* Sales units are based on Suzuki research on outside datas.

Automobiles
Years ended 31 Marchn Production units
2017

n Operating results of automobile businessn Sales units
1,781

2018

(Thousand units)

2017

2018

(Thousand units)

1,654

971

India

Asia

(excl. India)

3,550

2,551

10.3％

439

404

281

180
Europe(100 million yen)Margin

8.8％

668

Japan

Segment profit

Japan

Europe

182
India

Asia

(excl. India)

Others2017

2018

Suzuki’s Worldwide Manufacturing and Sales
Total overseas automobile production for FY2017 increased by 7.4% year-on-year to 2,367,000 units. Worldwide production, including Japan,
also increased by 8.6% year-on-year to 3,338,000 units.
Sales of automobiles in overseas market increased by 12.1% year-on-year to 2,556,000 units, while total global sales, including Japan, also
increased by 10.5% year-on-year to 3,224,000 units.

Operating Results by Segment
The Japanese domestic automobile net sales increased year-on-year mainly owing to sales contribution of new models Spacia and XBEE
launched in December 2017, in addition to WagonR and Swift launched in the previous fiscal year. The overseas automobile net sales increased year-on-year mainly owing to increase in sales in markets including India, which launched the new Dzire and Swift, as well as Europe.
Consequently, the net sales of the automobile business increased by ¥540.2 billion (18.7%) to ¥3,435.8 billion year-on-year. The operating income increased by ¥100.0 billion (39.2%) to ¥355.0 billion year-on-year mainly owing to improvement in profit in Asia, Japan and Europe.

Japanese Market
1. Overview of the Japanese Automobile Market
Total domestic automobile sales volume in FY2017 increased for the second consecutive fiscal year by 119,000 units (2%) from 5,078,000 units
in the previous fiscal year to 5,197,000 units.
Sales of minivehicles led the whole market with an increase of 8% year-on-year to 1,859,000 units, owing to the success of full-model changeof main models by each company, despite the decrease in standard and small vehicles by 1% year-on-year to 3,338,000 units.

2. Suzuki Sales
Suzuki’s domestic automobile sales in FY2017 increased for the second consecutive fiscal year by 5% year-on-year to 668,000 units.
Suzuki’s sales of minivehicles increased for the first time in three fiscal years by 5% year-on-year to 556,000 units, mainly owing to thefull-model change of the all-new Spacia. Suzuki’s sales of standard and small vehicles increased for the third consecutive fiscal year by 5% yearon-year to a record-high of 112,000 units. The key drivers of that growth were the all-new Swift Sport launched in September and the all-new
crossover wagon XBEE launched in December 2017.

3. Suzuki Topics in FY2017• Swift Hybrid installed with hybrid system was introduced to the Swift compact car series in July, and full-model change of the Swift Sport was
launched in September 2017. And in November 2017, the Swift series received the 2018 RJC Car of the Year award for the third consecutive
generation model.
• Full-model change of the all-new Spacia and Spacia Custom minicars were launched in December 2017.
• All-new XBEE compact passenger car was launched in December 2017.

Swift Sport(launched in September 2017)

Spacia(launched in December 2017)

Spacia Custom(launched in December 2017)

XBEE(launched in December 2017)—6—
SUZUKI MOTOR CORPORATION

Year in Review

Overseas Markets
1. Overview of Suzuki’s Main Overseas Automobile Markets
New car sales (total market of passenger and commercial vehicles) in India increased in FY2017 by 10% year-on-year to 4,144,000 units,
while new car sales in Europe increased by 2% year-on-year to 20,820,000 units.
As for other countries and areas, new car sales in Indonesia increased by 4% year-on-year to 1,107,000 units, Pakistan increased by 18%
year-on-year to 247,000 units, Oceania in total increased by 5% year-on-year to 1,387,000 units, and Latin America in total increased by 9%
year-on-year to 6,047,000 units, while the Middle East in total decreased by 8% year-on-year to 2,235,000 units, and Africa in total decreased
by 4% year-on-year to 1,188,000 units.

2. Suzuki Sales
Suzuki’s overseas automobile sales volume in FY2017 increased by 12% year-on-year to 2,556,000 units. Suzuki’s sales in India increased by
15% year-on-year to a record-high 1,654,000 units owing mainly to strong demand for models including the Baleno, Vitara Brezza, and Dzire,as well as launching of the all-new Swift. Suzuki’s sales in Europe increased by 15% year-on-year to 281,000 units owing to launching of the
all-new Swift and Ignis, in addition to strong demand for other lineup of models.
As for other countries and areas, Suzuki’s sales in Indonesia increased by 24% year-on-year to 114,000 units, Pakistan increased by 23%
year-on-year to 139,000 units, Oceania in total increased by 3% year-on-year to 27,000 units, Latin America in total increased by 14% yearon-year to 117,000 units, the Middle East in total increased by 29% year-on-year to 16,000 units, and Africa in total decreased by 6% yearon-year to 21,000 units.

3. Suzuki Topics in FY2017• The all-new Swift was unveiled to the overseas market for the first time at the Geneva Motor Show in March 2017 and subsequently started sales in the overseas market. The all-new Swift is produced in and exported from Japan, India, and Thailand.
• In April 2017, Suzuki’s Hungarian subsidiary Magyar Suzuki Corporation achieved accumulated production of 3 million units. Up until now,cars produced in Hungary have been exported to more than 100 countries and regions worldwide.
• The all-new Swift was selected as TOP3 of the 2018 World Urban Car category at the World Car Awards in March 2018. This is the second
consecutive year for Suzuki’s model to be selected as TOP3 following the Ignis in 2017.

Swift (unveiled for overseas market in March 2017)—7—
SUZUKI MOTOR CORPORATION

Year in Review

Motorcycles
Years ended 31 Marchn Production units (ATV included)
2017

2018

1,431

n Sales units (ATV included)(Thousand units)

2017

n Operating results of motorcycle business(Thousand units)

2018

1,261

Segment profit
Margin(100 million yen)

46

1.9％
152

42

60

Others

Japan

4
Japan

North America

Asia

184
40

35

Europe North America Asia

Others

-9
2017

2018

Suzuki’s Worldwide Manufacturing and Sales
Total overseas motorcycle production (including ATVs) in FY2017 increased by 20.2% year-on-year to 1,478,000 units. Worldwide
production, including production in Japan, also increased by 19.0% year-on-year to 1,630,000 units.
Sales of motorcycles (including ATVs) in overseas market increased by 16.4% year-on-year to 1,520,000 units, while total global sales,
including Japan, also increased by 15.5% year-on-year to 1,580,000 units.

Operating Results by Segment
The net sales increased by ¥40.1 billion (19.4%) to ¥246.4 billion year-on-year mainly owing to sales contribution of scooters in India
and large displacement models in developed countries. The operating loss of ¥0.9 billion in the previous fiscal year improved to an
operating income of ¥4.6 billion.

Japanese Market
1. Overview of Japanese Motorcycle Market
The total domestic motorcycle sales (factory shipments) of the four Japanese manufacturers in FY2017 increased by 2% year-on-year to349,000 units. Sales of models with engine displacements of 126cm3 and higher were up 29% year-on-year at 97,000 units. Sales of models
with engine displacements up to 125cm3 were down 5% year-on-year at 252,000 units. While there are structural concerns of poor demandin the domestic market such as aging of users and decrease in younger population, it is assumed that last-minute demand of models whichwere discontinued due to environmental restrictions, and launching of new models raised the level of demands.

2. Suzuki Sales
Suzuki’s domestic sales (factory shipments) in FY2017 were flat on the year at 60,000 units. Sales of models with engine displacements of
126cm3 and higher were up 73% year-on-year to 14,000 units. Sales of models with engine displacements up to 125cm3 were down 11%
year-on-year to 46,000 units. Models with engine displacements between 126cm3 and 250cm3 largely grew by 121% to 9,000 units owing tolaunch of new models GSX250R and V-Strom 250. On the other hand, models with engine displacements of up to 125cm3 fell year-on-year
owing to decrease of models due to environmental restrictions.

3. Suzuki Topics in FY2017• Japan specification model of Suzuki’s flagship supersport bike, the all-new GSX-R1000R ABS, was launched in July 2017. With the conceptof No.1 Sportbike, by thoroughly reviewing the fundamental design and adopting technologies developed in MotoGP, it underwent its firstfull-model change in eight years, and Japan-specification model was launched for the first-time ever.
• GSX250R and V-Strom 250 received the 2017 Good Design Award in October 2017. They were valued for having different concepts and designs while sharing the common platform.

GSX-R1000R ABS (launched in July 2017)

GSX250R (launched in April 2017)—8—
SUZUKI MOTOR CORPORATION

V-Strom 250 (launched in July 2017)

Year in Review

Overseas Markets
1. Overview of Suzuki’s Main Overseas Motorcycle Markets
Sales of motorcycles in Europe in FY2017 decreased by 8% year-on-year to 961,000 units. Sales of motorcycles (including ATVs) in North
America also decreased by 2% year-on-year to 777,000 units.
Sales in the six key ASEAN countries (Indonesia, Thailand, Vietnam, the Philippines, Malaysia, and Cambodia) increased by 5% year-onyear to 13,146,000 units. Sales in China decreased by 1% year-on-year to 7,796,000 units. Sales in India increased by 15% year-on-year to
20,193,000 units.

2. Suzuki Sales
Suzuki’s overseas motorcycle sales in FY2017 increased by 16% year-on-year to 1,520,000 units.
Sales in Europe decreased by 11% year-on-year to 40,000 units, but North America increased by 11% year-on-year to 35,000 units.
Sales in the six key ASEAN countries increased by 12% year-on-year to 296,000 units, China increased by 9% year-on-year to 392,000 units,
and India increased by 43% year-on-year to 501,000 units.

3. Suzuki Topics in FY2017• Full-model change of motocross bike RM-Z450 was announced in July 2017.
• New standard model SV650X ABS was unveiled at EICMA (Milan Show) held in Milan, Italy in November 2017.
• New 125cm3 scooter BURGMAN STREET produced by Suzuki Motorcycle India was unveiled at the Auto Expo held in India in February 2018.
• New 125cm3 scooter SWISH produced by Tai Ling Motor was announced in Taiwan in March 2018.
• In its motorsport activities, Suzuki participated in the MotoGP class of the Road Racing Grand Prix with a new team structure. Also, the allnew supersport bike GSX-R1000 made excellent results worldwide. It won at the Isle of Man TT, achieved champions of superbike championships in the US and Australia, and ended second overall in Japan superbike championship and Endurance World Championship.

RM-Z450 (unveiled for overseas market in July 2017)

SV650X ABS (unveiled for overseas market in November 2017)

BURGMAN STREET (unveiled in India in February 2018)

SWISH (unveiled in Taiwan in March 2018)—9—
SUZUKI MOTOR CORPORATION

Year in Review

Marine, etc.
n Operating results of marine business, etc.
(100 million yen)Segment profit

Years ended 31 March

145

Margin

125

18.6％

19.4％

2017

2018

Operating Results by Segment
The net sales increased by ¥7.4 billion (11.0%) to ¥75.0 billion year-on-year mainly owing to sales contribution of new outboard motor DF350A
in North America and Europe. The operating income increased by ¥2.0 billion (15.9%) to ¥14.5 billion year-on-year.

Overview of Marine Products
Suzuki’s domestic outboard motor sales in FY2017 decreased by 2% year-on-year in volume terms and were flat on the year in net terms.
Suzuki’s export sales increased by 9% year-on-year in volume terms and by 17% year-on-year in net terms. This is owing to sales contribution ofmodels including the new outboard motor DF350A mainly in North America and Europe.
Suzuki’s four-stroke outboard motors range from the DF2 (the lowest-power model, which delivers 2PS) to the DF350 (the highest-power model,
which delivers 350PS). The Company produces small models in Thailand and larger models in Japan.

Suzuki Topics in FY2017• DF350A outboard (maximum output 350PS) equipped with new technologies including the contra-rotating propellers was unveiled in June
2017. It won National Marine Manufacturers Association’s Innovation Award in September 2017. Plus, DF325A (maximum output 325PS)
equipped with technologies common with the DF350A was unveiled in January 2018. DF325A has the maximum output in Suzuki’s lineup ofoutboards with regular petrol as its fuel.
• New outboard motor DF100B, the lightest model in the 100-horsepower class was unveiled in September 2017.

DF350A(unveiled in June 2017)— 10 —SUZUKI MOTOR CORPORATIONESG Information

ESG Information
Environmental Initiatives
As a manufacturer of automobiles, motorcycles, marine, and other items, Suzuki acts in consideration of the environment at all
product stages from development to disposal.
In product development, our environmental initiatives include improving fuel economy, reducing exhaust emissions, developing
next-generation vehicles, and acting in consideration of recycling. In manufacturing, our efforts include reducing global CO2
emissions, reducing energy requirements, and promoting the use of alternative energy sources. In distribution, we focus on improving the operational efficiency and energy efficiency of transportation and on promoting the 3Rs (Reduce, Reuse and Recycle).
In marketing, we promote environmental management among our dealers and strive to ensure proper disposal of end-of-life products.
We also pursue environmental initiatives that are not directly related to our products. For instance, we promote energy savings andgreen purchasing in our offices, give our workers environmental education, and support social action programs in local communities.

Suzuki Environmental Plan 2020
The Company newly established and announced the Suzuki Environmental Plan 2020 presenting the direction and initiatives ofbusiness operations relating to the environment up to FY2020. New goals were set, including a 28% reduction in CO2 emissions due
to automobile use by 2020*1 and a 10% reduction in CO2 emissions from all production centres of the Suzuki Group, in Japan andoverseas, by 2020*2.
We believe that our most important task is to seriously recognise effects to environment generated from our business operations,develop products that carefully consider environment and promote business operations that reduce environmental effects. To
accomplish this, we are working on Suzuki Environmental Plan 2020 with Team Suzuki involving domestic and overseas affiliates tobuild the base for 2020, which is the 100th anniversary of foundation, and for the next 100 years, following the 4 themes listed below.
*1 Compared with FY2005.
*2 Compared with FY2010.

The details of the Suzuki Environmental Plan 2020 are available in the Suzuki CSR & Environmental Report. The report features ESG(environmental, social, and governance) initiatives and data receiving increased attention from stakeholders, including the environment, human rights, labour, and compliance.
Suzuki CSR & Environmental Report: http://www.globalsuzuki.com/corporate/environmental/report/— 11 —SUZUKI MOTOR CORPORATIONESG Information

Introduction of Electrification
Suzuki promotes reduction of CO2 emissions by introducing mild hybrid technology to compact/mini passenger cars and hybrid
technology adopting Suzuki’s original AGS mechanism.
Also, in order to reduce CO2 emissions furthermore and realise zero emissions in future, we promote the development of compact
EVs suitable for daily life.

Sales units of models equipped with hybrid system (Thousand units)
FY2016FY2017
Global automobile sales units Global automobile sales units
Of whichhybrids

Of whichhybrids

Japan

639

287

668

350

India

1,445

85

1,654

85

Others

835

17

902

27

Total

2,918

389

3,224

462

14.3%
13.3%
389
17

462
27
85

85

287

FY2016

Others
India

350

Japan
Ratio of hybrids
in global sales

FY2017* Hybrids include mild hybrid, S-ENE CHARGE, and SHVS.
* Hybrid sales units of Others are units exported from Japan and India.

Lineup of models equipped with hybrid system
Mini: WagonR/WagonR Stingray, Hustler, Spacia/Spacia Custom
Compact: Solio/Solio Bandit, Swift, XBEE, Baleno, Ignis, Ciaz, Ertiga, S-CROSS* Depending on the market, there are models that are not equipped with hybrid system.

Topics• In April 2017, Suzuki, Toshiba Corporation, and Denso Corporation reached basic agreement on establishing a joint venture company for
production of automotive lithium-ion battery packs in India, and signed the agreement. Subsequently, a ceremony for the cornerstone-laying of a lithium-ion battery plant was held in September. The battery pack manufacturing joint venture by the three companies will realisestable supply of lithium-ion battery packs in India in the course of promoting sustainable cars in the country and will contribute to “Make inIndia” initiative by the Government of India.
• In November 2017, the Company and Toyota Motor Corporation agreed to consider a cooperative structure with the aim of introducing
electric vehicles into the Indian market around 2020. Further, in March 2018, the companies came to a basic agreement to mutually supply
hybrid vehicles and other products in the Indian market. Both companies will continue to consider further cooperation with the goal of attaining a society of sustainable mobility.

— 12 —SUZUKI MOTOR CORPORATIONESG Information

CSR Policy
Structure for promoting CSR
At the Executive Committee meetings attended by Representative Directors and Directors and Managing Officers concerned, issues,policies, and measures concerning CSR activities are discussed. Along with the management, the Company as a whole, aims to promote viable CSR activities.

Steps in defining materiality (key issues) in CSR activities
We have defined the materiality (key issues) in CSR activities of the Suzuki Group, led by the departments in charge of CSR including
corporate planning departments (Corporate Communications and Corporate Management/IR) and environmental departments, using
the following steps.

Steps in defining materiality in CSR activities
Step 1

Extract issues based on GRI guidelines, etc.

Step 2

Departments in charge of CSR organise and discuss issues extracted, and decide their significance for the Suzuki Group

Step 3

Decide significance for the stakeholders through meetings with ESG investors and environmental NGOs

Step 4

Define materiality and decide their priority from two axis: significance for the Suzuki Group and for the stakeholders

Step 5Check their compliance with the mid-term management plan

The defined materiality is shown in the following matrix. Based on this materiality, the Company will work on the CSR activities andreview it periodically.
・Enhancement of product quality(development, production, sales, and service)・Traffic safety

・Reduction of CO2 emissions

・Environmental conservation

・Development and popularisation of environmental technologies

・Respect for human rights

・Development and popularisation of safety technologies

・Supply chain management

・Corporate governance and compliance・Stable growth of sales and income

・Effective use of resourcesHigh

Significance for the Stakeholders

Extremely High・Occupational health and safety

・Enhancement of corporate value(raw materials, energy, and water)・Nurturing of human resources

・Diversity

・Stable labour/management relations

・Educational support

・Enforcement of risk management

・Contribution to the local communities

High

Extremely High
Significance for the Suzuki Group

SDGs and CSR activities of the Suzuki Group
Sustainable Development Goals (SDGs), which were adopted by
the United Nations in September 2015, aims to realise better international society by setting 17 goals in society, economy, andenvironment to be worked on by 2030 and make efforts for theirsolutions. All entities including corporations and all persons in all
countries and regions are required to take necessary actions.
The Suzuki Group supports SDGs and will actively take responsibilities in goals that we can contribute in their achievements
through our CSR activities.
— 13 —SUZUKI MOTOR CORPORATIONESG Information

Corporate GovernanceDirectors, Auditors and Officers（as of 1 July 2018）[Representative Directors]
Representative Director and Chairman(Chairman of the Board of Directors)

Osamu Suzuki

Representative Director and Vice Chairman

Yasuhito Harayama

Representative Director and President

Toshihiro Suzuki

Supporting Chairman[Directors]
Director and SeniorTechnical Executive
Director andManaging Officer
Director(Outside Director)

Osamu Honda
Masahiko Nagao

Managing Officer in charge of Human Resources, and Executive General Manager, Corporate Planning OfficeHiroaki Matsuura

Executive General Manager, Manufacturing

Masakazu Iguchi
Sakutaro Tanino* Masakazu Iguchi and Sakutaro Tanino are the outside directors as stipulated in Article 2, Item 15 of Companies Act of Japan.

[Audit & Supervisory Board Members]
Kunio Nakamura
Audit & Supervisory
Board Member (full-time) Eiji Mochizuki
Audit & Supervisory
Board Member (Outside)

Norio Tanaka
Yasuhiro Yamazaki
Nobuyuki Araki* Norio Tanaka, Yasuhiro Yamazaki and Nobuyuki Araki are the outside audit & supervisory board members as stipulated in Article 2, Item 16 of Companies Act of Japan. Yasuhiro Yamazaki is a full-time audit & supervisory board member.

[Executive Vice President]
Executive Vice President

Kenichi Ayukawa

Managing Director and CEO, Maruti Suzuki India Ltd.

[Senior Managing Officers]
Senior Managing
Officer

Ichizo Aoyama

President, Automotive Electronics Power Private Limited

Toshiaki Hasuike

Executive General Manager, Automobile Engineering[Managing Officers]

Managing Officer

Kazuo Hakamata
Masato Kasai
Taisuke Toyoda
Keiichi Asai
Shuji Oishi
Kazuki Yamaguchi
Shigeyuki Yamamura
Toshiaki Suzuki
Hidenori Yamashita
Kinji Saito
Ichiro Onishi
Keiji Miyamoto
Kazuhiko Ayabe
Shinichi Imaizumi
Naoki Suzuki
Kazunobu Hori
Katsuhiro Kato
Shigeo Yamagishi
Yoshikazu Ozawa
Yasuharu Osawa
Satoshi Uchida
Shigetoshi Torii
Masayuki Fujisaki

Production & Purchasing, and Engineering, PT. Suzuki Indomobil Motor (Indonesia)
Managing Officer, Environment Engineering Group, Vehicle Regulations and Engineering Administration
Executive General Manager, FinancePresident, Chongqing Changan Suzuki Automobile Co., Ltd. (China)
Deputy Executive General Manager, Global Automobile Marketing
President, Suzuki Motor Sales Kinki Inc.
Managing Officer in charge of Human Resources Development
Executive General Manager, Domestic Marketing I, Domestic Marketing
Deputy Executive General Manager, Manufacturing
Executive General Manager, Global Automobile Marketing
Executive General Manager, Customer Quality Assurance and Service
Executive General Manager, Domestic Marketing II, Domestic Marketing
Executive General Manager, Purchasing
Deputy Executive General Manager, Domestic Marketing
Managing Officer in charge of Engineering, Corporate Planning Office
Managing Officer in charge of Engineering Human Resources
Executive General Manager, Automobile Product & Cost Planning
Executive General Manager, Vehicle Regulations and Engineering Administration
Managing Officer based in Maruti Suzuki India Limited (India Human Resources Management)
Division General Manager, Marine Operations
Deputy Executive General Manager, Motorcycle Operations, and President, Suzuki Motorcycle India Private Limited
Deputy Executive General Manager, Manufacturing
Managing Officer in charge of Partnership Promotion, Corporate Planning Office— 14 —SUZUKI MOTOR CORPORATIONESG Information

Corporate Governance Issues
1. Basic policy on corporate governanceThrough 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 afurther contribution to the international community. In order to realise that intention, the Company considers that the enhancementof the corporate governance is one of the most important issues for proper corporate management and is aggressively taking various
kinds of measures.
Also, in order to be trusted further by society and stakeholders, we disclose information quickly in fair and accurate manner prescribed in laws and regulations and actively disclose information that we concluded is beneficial to understand the Company. We willfurther enhance the transparency of the Company.

2. Corporate Governance System
With the Audit and Supervisory System as the basis, the Company is making efforts in strengthening the corporate governance system through initiatives including selection of highly independent Outside Directors, and establishment of Advisory Committee on selection of candidates for Directors and on remuneration, etc.
For details of the Company’s corporate governance system, please refer to the Corporate Governance Report.
http://www.globalsuzuki.com/ir/library/governance/pdf/report.pdf

General Meeting of Shareholders
Elects/Dismisses

Elects/Dismisses

Elects/Dismisses
Collaborates

AuditsBoard of Directors
8 Directors ( 2 of which are Outside Directors )Reports
Finds

Audit & Supervisory Board
5 Members

Secretariat
of Audit &Supervisory
Board

Consults
Reports

Advisory Committee
on Personnel andRemuneration, etc.

Accounting Auditor(3 of which are Outside Audit &Supervisory Board Members)

Reports

Audits accounts

Instructs

Presents /Reports

Supervises

Audit
Department

Collaborates

Instructs• Executive Committee• Meetings Relating toBusiness Operations
and Management

External
Attorneys

Corporate GovernanceCommittee

AuditsReports

Instructs

Consults
Reports

Promotes
complianceand riskmanagement

AuditsRisk Management Hotline(Internal reporting system)

Audits accounts

Headquarters / Group Companies— 15 —SUZUKI MOTOR CORPORATIONESG Information

Risks in Operations
Risks that may affect the management results, stock price and financial situation of the Group include the followings.
Forward-looking statements in this section are based on our conclusions as of the end of FY2017.

1. Risk relating to markets
n Change in economic situations, demand fluctuation in the markets

The long term economic slowdown, world economic deterioration and financial crisis, and the reduced buying motivation of the consumers may lead to a substantially reduced demand for the products of the Group including automobiles, motorcycles and outboard motors. They may also adversely 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 theemerging countries of the Asian regions has been increasing over the years. The unexpected situation in these markets such as the rapidchange in the economic situations may adversely affect the performance and financial conditions of the Group. Further, unexpectedchange or new application of tax systems, financial policies and others in each country may also adversely affect the performance andfinancial conditions of the Group.
n Severer competitions with other companies

We are facing competitions with rival companies in every global market where we conduct our businesses. As the automobiles andmotorcycles industries in the world are globalised further, competitions may get harder. Competitions with other companies include
various aspects such as product quality, safety, price, environmental performance, as well as efficiency of product development andmanufacturing system, establishment of sales and service systems and sales finance.
We will make further efforts for maintaining and improving our competitive edges, but there may be risks that impede our competitive
advantages.

2. Risk relating to businessn New product development and launching abilities

It is very important for an automobile and motorcycle manufacturer to grasp correctly the customer needs and environment surroundingcars and to develop and launch to the market new attractive products that satisfy the customers in a timely manner. It has become more
important than ever to grasp the customer needs that rapidly change and environment surrounding cars, such as the reduced demands
caused by domestic and overseas economic slowdown, the increased interest in the environmental performance and the rapid spread ofcars loaded with advanced technology.
Besides, launching of new products will require abilities of specific product development, development capability of advanced technology
toward the future, and further abilities of continually manufacture products, in addition to appropriately understanding customer needs
and environment surrounding cars.
However, even if we are able to grasp correctly the customer needs and environment surrounding cars, we may not be able to develop
new products matching the customer needs in a timely manner on account of technical abilities, procurement of parts, production capabilities, securities of superior human resources and other factors. If we are unable to launch products matching the customer needs
to the market in a timely manner, the sales share and sales may be reduced, which may adversely affect the performance and financial
conditions of the Group.
n Change in product prices and purchase prices, dependence on specific suppliers

Various factors including insufficient supply or price rise of specific parts and raw materials, unstable economic conditions, revisions ofimport regulations and harder price competition may rapidly change the product prices and purchase prices of the Group. There is no
guarantee that such rapid price change does not last long or such change does not occur in the markets where there have not beensuch changes so far. Rapid changes in product prices and purchase prices may adversely affect the performance and financial positionsof 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, andprice competitiveness. If we are unable to obtain the parts continuously and stably on account of unforeseeable accidents of the suppliers, it may adversely affect the performance and financial conditions of the Group.
n Business development in various countries in the world

We have been conducting our businesses in various countries in the world, and in some of the countries, we conduct joint ventures withlocal companies in accordance with local laws or other requirements. These businesses are restricted by various legal and other regulations in each country (including those related to tax, tariff, overseas investment and fund transfer to the home country). Any changes
to such regulations, or management policies or management environment of the joint venture partners may adversely affect the performance and financial conditions of the Group.
n Fluctuations of exchange rates and interest rates

We export automobiles, motorcycles, 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. The ratio of the overseas sales hasreached 70 percent of consolidated sales for the current consolidated fiscal year. As the Group depends heavily on the overseas manufacturing plants located mainly in emerging countries, it is susceptible to fluctuations in the foreign currencies. Also, since the Groupprocures a major part of fund in Japan where interest rates continue to be low, it is susceptible to changes in the interest rates.
We take hedging measures such as forward exchange contracts and decentralisation of production sites to optimise the production system globally to reduce the risks of exchange rates and interest rates fluctuations, but it is impossible to hedge every risk. The currencies
appreciation in main production countries against other currencies may adversely affect the performance and financial conditions of theGroup. On the other hand, by transferring production sites to other countries, it may result in opportunity losses that the Group can nolonger benefit from foreign exchange gain in export even when the currency of its local country weakens.
Further, rapid increase of interest rates in Japan may adversely affect the performance and financial conditions of the Group.
— 16 —SUZUKI MOTOR CORPORATIONESG Informationn Government regulations

Various legal regulations are applied to the automobiles, motorcycles and outboard motor industries in relation to the emission level ofemission gas, mileage, noises, safety and contaminated material emission level from the manufacturing plants. These regulations may berevised, in many cases strengthened. Expenses to comply with these regulations may largely affect the performance of the Group.
In addition, many governments determine the imposition of tariffs, price control regulations and exchange control regulations. The Groupis paying expenses to comply with these regulations and will expect to continue bearing them.
We may pay more expenses depending on the establishment of new laws or changes of existing laws. Further, unexpected changes or
new application of tax systems and economic measures of each country may adversely affect the performance and financial conditionsof the Group.
n Quality assurance

We place the top priority on the product safety and make efforts to establish the quality assurance system from development to sales.
We buy insurance for the product liability, but there are risks not covered by insurance. The occurrence of large expenses for a largescale recall to ensure safety of the customers may adversely affect the performance and financial conditions of the Group.
n Alliance with other companies

We conduct various alliance activities with automobile manufacturer around the world and other companies such as for research anddevelopment, manufacturing, sales and finance, but factors that cannot be controlled by the Group such as situations inherent to the alliance partners may adversely affect the performance and financial conditions of the Group.
n Dependency on information technology

We create, process and stock information in the form of electronic data in all areas of the business activities such as design and development, production, marketing and accounting. The Group’s products are also equipped with a variety of electronic control systems, which
control vehicles and mounted equipment. While safety measures have been taken on the said items, infrastructure failure such as power
shutoff and attacks by computer hacker and viruses may occur. If the group’s operation is interrupted, and data is destroyed or lost, andleakage of confidential information takes place, it may adversely affect the performance and financial conditions of the Group.
n Leakage of information

We have adopted a structure to prevent leakage of personal information of inside and outside of company and confidential information
related to the Group’s management, operation and technology, etc. But if such information is leaked or used without due authorisation
attributable to unexpected circumstances, the Group may be subject to legal demand, lawsuit, indemnity liability and obligation to pay afine, and this may adversely affect the performance and financial conditions of the Group.
n Compliance

We have established a compliance system to prevent violation of laws and regulations and respond quickly to various issues related tocompliance. Nevertheless, if we detect a fact of violation of laws or inappropriate response to compliance issues due to unexpectedcircumstances, the Group’s social credibility may be affected seriously, which may adversely affect the performance and financial conditions of the Group.
n Protection of intellectual property

We have stocked intellectual property such as technology and knowhow to distinguish its products with those of competitors, and havetaken measures to protect such property and to prevent infringement of intellectual property rights by a third party. Nonetheless, if theGroup’s intellectual property is infringed unlawfully, or if the Group is pointed out by a third party to have infringed intellectual property
rights and faces lawsuit or asked to terminate manufacturing and marketing of its products and to pay indemnity, it may adversely affectthe performance and financial conditions of the Group.
n Legal proceedings

We may become a party to lawsuits and other legal proceedings in the course of our business activities. In the case where any judgments
disadvantageous to us are made in such legal proceedings, it may adversely affect the performance and financial conditions of the Group.
n Influences of natural disasters, epidemics, wars, terrorism and strikes, etc.

In Japan, we are exposed to a variety of risks such as natural disasters including earthquake, typhoon and flood and unexpected accident. Especially, the Group’s major facilities including head office, R&D sites and major manufacturing plants are concentrated in the
Tokai region where occurrence of periodic massive earthquakes is highly probable.
We have taken various preventive measurements such as quake-resistant measures for buildings and facilities, fire preventive measures,
establishment of BCP (Business Continuity Plan), purchases of earthquake insurances and others to minimise the influences of damage
by natural disasters such as Tokai and Tonankai Earthquake. But, occurrences of any Tokai and Tonankai Earthquake may adversely affectthe performance and financial condition of the Group largely.
We also conduct businesses around the world and are exposed to number of risks relating to our overseas operations. These risks
around the world are natural disasters, epidemics, wars, terrorism, strikes, and various matters attributable to unstable political and social
situation and difficulties, etc. These unexpected events may delay or suspend the purchase of raw materials and parts, manufacturing,sales of products, and provision of logistics and services. If such delay or suspension caused by any of these factors occur or prolong, it
may adversely affect the performance and financial conditions of the Group.
Further, there are various risks other than those mentioned above, and what have been stated in this section does not represent all therisks of the Group.
— 17 —SUZUKI MOTOR CORPORATION

FINANCIAL SECTIONCONTENTS
Five-Year Summary...................................................................................... 19
Consolidated Financial Statement............................................................... 20
Consolidated Balance Sheets.............................................................................. 20
Consolidated Statement of Income andConsolidated Statement of Comprehensive Income....................................... 22
Consolidated Statement of Changes in Net Assets.............................................. 24
Consolidated Statement of Cash Flows............................................................... 26
Notes to Consolidated Financial Statements....................................................... 27
Independent Auditor’s Report.............................................................................. 47— 18 —SUZUKI MOTOR CORPORATIONFive-Year Summary
SUZUKI MOTOR CORPORATIONCONSOLIDATED
Millions of yen(except per share amounts)

Years ended 31 March

2018

2017

2016

2015

2014

Net sales.......................................

¥3,757,219¥3,169,542¥3,180,659¥3,015,461¥2,938,314

Net income attributable to ownersof the parent .................................

215,730

159,956

116,660

96,862

107,484

Primary......................................

488.86362.54234.98172.67

191.60Fully diluted...............................

473.74362.48234.92172.63191.57

Cash dividends per share ...........

74.00

44.00

32.00

27.00

24.00

Net assets.....................................

1,595,227

1,387,041

1,187,703

1,701,390

1,494,357

Total current assets.......................

1,941,081

1,955,973

1,632,630

2,008,729

1,790,832

Total assets...................................

3,340,828

3,115,985

2,702,008

3,252,800

2,874,074

Depreciation and amortisation.....

150,877

163,397

168,315

134,377

117,188

Net income per share:— 19 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement
Consolidated Balance Sheets
As of 31 March 2018 and 2017

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2018

2017

¥ 600,846¥ 614,031

388,973349,224ASSETS
Current assets:
Cash and cash equivalents *NOTE 12 ....................................
Receivables:
Notes and accounts receivable-trade *NOTE 4 .................
Allowance for doubtful accounts....................................

(4,769)(4,821)Inventories...........................................................................

352,916

332,116

Deferred tax assets *NOTE 9 ..................................................

122,092

113,845

Others..................................................................................

481,022551,576

Total current assets.............................................................

1,941,081

1,955,973

Land *NOTE 6..........................................................................

280,866

261,130

NOTE 6 ..........................................

Buildings and structures *454,347

438,043

Machinery,equipment and vehicles.................................

1,217,050

1,363,140

Tools, furniture and fixtures...............................................

585,610396,523

Construction in progress....................................................

106,393

48,2232,644,269

2,507,061

Accumulated depreciation...............................................

(1,840,003)(1,750,717)

Total property, plant and equipment..................................

804,265

756,344

Investment securities *NOTE 4 ...............................................

517,693

314,594

Investments in affiliates *NOTE 4 ............................................

35,50952,841NOTE 8 ..................................

42

44

NOTE 9 ..................................................

Deferred tax assets *23,471

21,140

Others..................................................................................

18,764

15,047

Total investments and other assets................................

595,481403,667

Total assets..........................................................................

¥3,340,828¥3,115,985

Property, plant and equipment:

Investments and other assets:

Assets for retirement benefits *The accompanying Notes to Consolidated Financial Statement are an integral part of these statements.

— 20 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

As of 31 March 2018 and 2017

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2018

2017

¥ 97,598¥ 96,643

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term loans payable *NOTE 4 and 6 ..................................
Current portion of long-term loans payable *NOTE 4 and 6 ......

93,157

119,958

Accounts payable-trade *NOTE 4 ..........................................

443,916

428,063

Electronically recorded obligations....................................

68,322

83,070

Income taxes payable........................................................

40,59831,863

Accrued expenses *NOTE 4 ...................................................

215,335

191,068

Provision for product warranties ........................................

105,106

76,995

Deferred tax liabilities *NOTE 9 ...............................................

929

55

Others *NOTE 6 .......................................................................

177,305

160,402

Total current liabilities..........................................................

1,242,270

1,188,121

Noncurrent liabilities:
Bonds with subscription rights to shares *NOTE 4 and 5 ..........

194,211200,400

192,943

222,870

Liabilities for retirement benefits *NOTE 8 ..............................

65,22463,099Provision for disaster .........................................................

1,914

1,976

Deferred tax liabilities *NOTE 9 ...............................................

1,175

1,384

47,86051,091Long-term loans payable *NOTE 4 and 6 ...................................

Others *NOTE 6........................................................................
Total noncurrent liabilities...................................................

503,330

540,822

Total liabilities......................................................................

1,745,601

1,728,943

138,064

138,014

Net assets:
Shareholders’ equity:
Capital stock:
Common stock:
Authorised: 1,500,000,000 shares Issued:
as of 31 March 2018: 491,018,100 shares
as of 31 March 2017: 491,000,000 shares....................
Capital surplus....................................................................

143,868

144,035

Retained earnings..............................................................

1,247,242

1,058,549

Treasury stock ....................................................................

(189,126)(191,051)

Total shareholders’ equity...................................................

1,340,047

1,149,548

98,827

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities.........

108,528

Deferred gains or losses on hedges..................................

22

1,269

Foreign currency translation adjustment...........................

(140,136)(119,236)

Accumulated adjustment for retirement benefits..............

(10,925)(10,543)

Total accumulated other comprehensive income.............

(42,511)(29,683)

Subscription rights to shares *NOTE 15 ..............................

126

126

Non-controlling interests.................................................

297,564

267,049

Total net assets...................................................................

1,595,227

1,387,041

Total liabilities and net assets.............................................

¥3,340,828¥3,115,985— 21 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)Years ended 31 March 2018 and 2017

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2018

2017

Net sales................................................................................

¥3,757,219¥3,169,542

Cost of sales.........................................................................

2,651,473

2,261,914

Gross profit..........................................................................

1,105,745

907,627

Selling, general and administrative expenses *NOTE 10 and 11....

731,563

640,942

Operating income...............................................................

374,182

266,685

35,633

16,827

Other income (expenses):
Interest and dividends income...........................................
Interest expense.................................................................

(8,152)(4,771)Equity in earnings (losses) of affiliates...............................

(13,870)

2,327

NOTE 3.........................................................

Impairment loss *(2,585)(39,936)

Others, net...........................................................................

(1,173)54,067

Income before income taxes etc.......................................

384,033

295,200

Current.................................................................................

121,527

92,263

Deferred..............................................................................

(12,933)

5,319

108,593

97,583

275,439

197,616

Income taxes: *NOTE 9

Net income..........................................................................
Net income attributable to non-controlling interests..........

59,70937,660Net income attributable to owners of the parent..............

¥ 215,730¥ 159,956

Yen

Net income per share:
Primary................................................................................

¥

488.86¥362.54

Fully diluted.........................................................................

473.74362.48Cash dividends per share...................................................

74.00

44.00

The accompanying Notes to Consolidated Financial Statement are an integral part of these statements.

— 22 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(Consolidated Statement of Comprehensive Income)Years ended 31 March 2018 and 2017

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2018

2017

Net Income ...........................................................................

¥275,439¥197,616

Other comprehensive income *NOTE 13
Valuation difference on available-for-sale securities.........

16,03628,375

Deferred gains or losses on hedges..................................

(1,232)505

Foreign currency translation adjustment...........................

(35,936)

3,634

Adjustment for retirement benefits.....................................

(514)

(655)

Share of other comprehensive income of associates
accounted for using equity method...................................

234(2,318)

Total other comprehensive income....................................

(21,411)29,541

Comprehensive income......................................................

254,027

227,158

Comprehensive income attributable to owners of the parent...

202,870

177,276

Comprehensive income attributable to non-controlling interests...

51,15749,881

Comprehensive income attributable to:

The accompanying Notes to Consolidated Financial Statement are an integral part of these statements.

— 23 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Consolidated Statement of Changes in Net Assets
Years ended 31 March 2018 and 2017

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES

Thousandsof sharesof common
stock

Total
Shareholders’equityCapitalstock

CapitalsurplusRetainedearnings

491,000¥138,014¥144,166¥913,656¥(191,169)¥1,004,668

Dividends from surplus......

—

—

—

(15,003)—(15,003)

Net income attributable toowners of the parent..........

—

—

—

159,956—

159,956

Purchase of treasury stock....

—

—

—

—

(4)

(4)

Disposal of treasury stock......

—

—

(60)

—

122

62

Transfer to capital surplus
from retained earnings......

—

—

60

(60)

—

—

Capital increase ofConsolidated subsidiaries.....

—

—

(130)

—

—

(130)

Net changes of items otherthan shareholders’ equity.....

—

—

—

—

—

—

Total changes during the
fiscal year...........................

—

—

(130)

144,892

118

144,880

491,000¥138,014¥144,035¥1,058,549¥(191,051)¥1,149,548

Issuance of new shares.....

18

49

49

—

—

98

Dividends from surplus......

—

—

—

(25,153)—(25,153)

Net income attributable toowners of the parent..........

—

—

—

215,730—

215,730

Purchase of treasury stock....

—

—

—

—

(6)

(6)

Disposal of treasury stock......

——(1,912)

—

1,930

18

Transfer to capital surplus
from retained earnings......

—

—

1,912

(1,912)——

Capital increase of
consolidated subsidiaries......

—

—

(216)

—

—

(216)

Change of scope of equity
method................................

—

—

—

28

—

28

Net changes of items otherthan shareholders’ equity.....

—

—

—

—

—

—

Total changes during the
fiscal year...........................

18

49

(166)

188,692

1,924

190,498

491,018¥138,064¥143,868¥1,247,242¥(189,126)¥1,340,047

Balance as of
31 March 2016

Balance as of
31 March 2017

Balance as of
31 March 2018— 24 —SUZUKI MOTOR CORPORATION

Treasury stockConsolidated Financial Statement

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES
Balance as of
31 March 2016

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Total
Accumulated accumulated
adjustment
otherfor retirement comprehensive
incomebenefits

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥77,624¥536¥(115,551)¥(9,580)¥(46,970)¥188

Dividends from surplus......

—

—

—

—

—

—

—

(15,003)

Net income attributable toowners of the parent..........

—

—

—

—

—

—

—

159,956

Purchase of treasury stock....

—

—

—

—

—

—

—

(4)

Disposal of treasury stock......

—

—

—

—

—

—

—

62

Transfer to capital surplus
from retained earnings......

—

—

—

—

—

—

—

—

Capital increase ofConsolidated subsidiaries.....

—

—

—

—

—

—

—

(130)

Net changes of items otherthan shareholders’ equity.....

21,202732(3,685)(962)

17,287(62)37,23254,458

Total changes during the
fiscal year...........................

21,202732(3,685)(962)

17,287(62)37,232

199,338¥98,827¥1,269¥(119,236)¥(10,543)¥(29,683)

¥126

—

—

—

—

—

—

—

98

Balance as of
31 March 2017
Issuance of new shares.....
Dividends from surplus......

¥229,816 ¥1,187,703¥267,049 ¥1,387,041

—

—

—

—

—

—

—

(25,153)

Net income attributable toowners of the parent..........

—

—

—

—

—

—

—

215,730

Purchase of treasury stock....

—

—

—

—

—

—

—

(6)

Disposal of treasury stock......

—

—

—

—

—

—

—

18

Transfer to capital surplus
from retained earnings......

—

—

—

—

—

—

—

—

Capital increase ofConsolidated subsidiaries.....

—

—

—

—

—

—

—

(216)

Change of scope of equity
method................................

—

—

—

—

—

—

—

28

Net changes of items otherthan shareholders’ equity.....

9,700(1,246)(20,900)(381)(12,828)—

30,514

17,686

Total changes during the
fiscal year...........................

9,700(1,246)(20,900)(381)(12,828)—

30,514

208,185¥108,528¥22¥(140,136)¥(10,925)¥(42,511)¥126

Balance as of
31 March 2018

The accompanying Notes to Consolidated Financial Statement are an integral part of these statements.

— 25 —SUZUKI MOTOR CORPORATION¥297,564 ¥1,595,227

Consolidated Financial Statement

Consolidated Statement of Cash Flows
Years ended 31 March 2018 and 2017

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2018

2017

¥384,033
150,8772,585(81)(35,633)
8,152
1,064
13,870(2,550)(1,281)(41,940)(23,449)
5,710
29,72039,067530,146
36,062(8,649)(112,387)
445,171¥295,200
163,397
39,936(812)(16,827)
4,771
876(2,327)(667)(47,775)(17,023)(50,386)
45,218
6,473
20,370440,423
15,412(4,613)(84,906)
366,315(141,102)
96,086(729,488)(38,552)
8,367(297,947)

775,840(205,854)(137,066)(341,585)

268,519(192,054)(36,898)(288,564)

1,443
57,000(120,874)(102,949)
83,172(63,449)—(6,070)200,500
—

1,005
(6)
(25,146)(20,789)(484)(113,922)(2,848)(13,185)
614,031¥600,846—(4)(15,003)(9,417)(3,342)89,505(3,313)
163,942450,088¥614,031

Cash flows from operating activities
Income before income taxes etc.......................................
Depreciation and amortisation...........................................
Impairment loss..................................................................
Increase (decrease) in allowance for doubtful accounts......
Interest and dividends income...........................................
Interest expenses...............................................................
Foreign exchange losses (gains).......................................
Equity in (earnings) losses of affiliates...............................
Loss (gain) on sales of property, plant and equipment....
Loss (gain) on sales of investment securities....................
Decrease (increase) in notes and accounts receivable-trade...
Decrease (increase) in inventories....................................
Increase (decrease) in notes and accounts payable-trade....
Increase (decrease) in accrued expenses.......................
Others, net...........................................................................
Sub-total..............................................................................
Interest and dividends income received...........................
Interest expenses paid.......................................................
Income taxes paid..............................................................
Net cash provided by (used in) operating activities.........
Cash flows from investing activities
Payments into time deposits..............................................
Proceeds from withdrawal of time deposits......................
Purchases of short-term investment securities.................
Proceeds from sales and redemption of short-term
investment securities.............................................................
Purchases of property, plant and equipment....................
Others, net...........................................................................
Net cash provided by (used in) investing activities..........
Cash flows from financing activities
Net increase (decrease) in short-term loans payable.......
Proceeds from long-term loans payable...........................
Repayment of long-term loans payable............................
Proceeds from issuance of bonds with subscription
rights to shares...................................................................
Redemption of bonds.........................................................
Proceeds from share issuance to non-controllingshareholders.......................................................................
Purchase of treasury stock.................................................
Cash dividends paid..........................................................
Cash dividends paid to non-controlling interests..............
Others, net...........................................................................
Net cash provided by (used in) financing activities..........
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period *NOTE 12

The accompanying Notes to Consolidated Financial Statement are an integral part of these statements.

— 26 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Notes to Consolidated Financial Statements
NOTE 1: Basis of presenting consolidated financial statements
The accompanying consolidated financial statements of Suzuki Motor Corporation (the “Company”), consolidated Subsidiaries,
and Affiliates (the “Group”) 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.
The preparation of the consolidated financial statements requires the management to select and adopt accounting standards andmake estimates and assumptions that affect the reported amount of assets and liabilities, revenue and expenses, and the corresponding methods of disclosure.
As such, the management’s estimates are made reasonably based on historical results. However, due to the inherent uncertainties involved in making estimates, actual results could differ from these estimates.
For the convenience of readers outside Japan, certain reclassifications and modifications have been made to the original consolidated financial statements.
As permitted, an amount of less than one million yen has been omitted.

NOTE 2: Summary of significant accounting policies(a) Principles of consolidation
The consolidated financial statements for the years ended 31 March 2018 and 2017 include the accounts of the Group, andthe numbers of consolidated subsidiaries were 131 and 136 respectively. In addition, the numbers of investments in affiliatedcompanies for the years ended 31 March 2018 and 2017 were 31 and 32 respectively. All significant inter-company accounts
and transactions are eliminated in consolidation. Investments in affiliated companies are accounted for by the equity method.
The difference at the time of acquisition between the cost and underlying net equity of investments in consolidated subsidiaries (goodwill) and in affiliated companies accounted for under the equity method is, as a rule, amortised on a straight-line
basis over a period of five years after appropriate adjustments.
The account settlement date of 19 consolidated subsidiaries is 31 December, however Magyar Suzuki Corporation Ltd. andothers are consolidated based on the financial statements of provisional account settlement as of 31 March.
The account settlement date of other consolidated subsidiaries is the same as the consolidated account settlement date.
(b) Allowance for doubtful accounts
In order to allow for loss from bad debts, estimated uncollectible amount based on actual ratio of bad debt is appropriated as
general allowance. With respect to specific receivable with higher default possibility, recoverable amount is estimated respectively and uncollectible amount is appropriated.
(c) Allowance for investment loss
The differences between the book value and the fair value of securities and investment not quoted at an exchange are determined and appropriated as reserve in order to allow for losses from these investments.
(d) Provision for product warranties
The provision is appropriated into this account based on the warranty agreement and past experience in order to allow for
expenses related to the maintenance service of products sold.
(e) Provision for Directors' bonuses
In order to defray bonuses for Directors and Audit & Supervisory Board Members, estimated amount of such bonuses is appropriated.
(f) Provision for Directors' retirement benefits
The amount to be paid at the end of fiscal year had been posted pursuant to the Company’s regulations on the retirement
allowance of Directors and Audit & Supervisory Board Members, however the Company’s retirement benefit system for them
was abolished at the closure of the Ordinary General Meeting of Shareholders held on 29 June 2006. And it was approved at
Ordinary General Meeting of Shareholders that reappointed Directors and Audit & Supervisory Board Members would be paid
their retirement benefit at the time of their retirement, based on their years of service. Estimated amount of such retirement
benefits is appropriated at the end of the current consolidated fiscal year. Furthermore, for the Directors and Audit & Supervisory Board Members. Of some consolidated subsidiaries, the amount to be paid at the end of the year is posted pursuant totheir regulation on the retirement allowance of Directors and Audit & Supervisory Board Members.
(g) Provision for disaster
Reasonably estimated amount is appropriated for anticipated loss mainly caused by relocation of plants and facilities locatedin the Ryuyo Region in Iwata City, Shizuoka Prefecture where massive tsunami damages caused by Tokai and Tonankai Earthquake are anticipated.
(h) Provision for product liabilities
The provision is appropriated for product compensation related to North American market which is not covered by “Product
Liability Insurance” based on the actual payments.
(i) Provision for recycling expenses
The provision is appropriated for an estimated expense related to the recycle of products of the Company based on number of vehicles owned in the market, etc.
— 27 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(j) Short-term investment securities and Investment securities
The Company and its subsidiaries hold securities of listed companies, which have a risk of price fluctuations, and non-listedcompanies whose stock prices are difficult to be evaluated.
If the Company and its subsidiaries judge the decline in investment value is not temporary, the Company and its subsidiaries
recognise revaluation loss based on the reasonable standard. If the stock market falls, the Company and its subsidiaries may
incur significant loss on valuation of securities.
Securities have to be classified into four categories: trading securities; held-to-maturity debt securities; investments of theCompany in equity securities issued by consolidated subsidiaries and affiliates; and available-for-sale securities.
According to this classification, securities held by the Company and its subsidiaries are available-for-sale securities. Availablefor-sale securities for which market quotations are available are stated at market value method based on the market values
as of the consolidated account settlement date (the evaluation differences shall be reported as other comprehensive income,and sales costs shall be calculated mainly by moving average method).
Available-for-sale securities for which market quotations are unavailable are stated at cost by moving average method.
(k) Hedge accounting
Gains or losses arising from changes in fair value of the derivatives designated as “hedging instruments” are deferred until thegains and losses on the hedged items or transactions are recognised.
If foreign currency forward contracts meet certain criteria, special exceptional hedge accounting is applied and thesecontracts are handled together with hedged items. If interest rate swap contracts meet certain criteria, exceptional hedge
accounting is applied and these contracts are handled together with hedged items. If cross currency interest rate swap
contracts meet certain criteria, integration method (special exceptional method and exceptional method) is applied and thesecontracts are handled together with hedged items.
The derivatives designated as hedging instruments by the Company and its subsidiaries are principally forward exchange
contracts, interest swaps and cross currency interest rate swaps. The related hedged items are foreign currency denominatedtransaction and borrowings.
The Company and its subsidiaries have a policy to utilise the above hedging instruments in order to reduce our exposure to
the risks of the fluctuation of interest rate and foreign exchange. Thus, our purchases of the hedging instruments are limited
to, at maximum, the amounts of the hedged items. The Company and its subsidiaries evaluate effectiveness of their hedging
activities by reference to the accumulated gains or losses on the hedging instruments and the related hedged items from thecommencement of the hedges.
(l) Foreign currency translation
All monetary assets and liabilities denominated in foreign currencies, whether long-term or short-term, are converted into
Japanese yen at the exchange rates prevailing at the balance sheet date. Resulting gains and losses are included in net
income or loss for the period.
Assets and liabilities of the foreign subsidiaries and affiliates are converted into Japanese yen at the exchange rates
prevailing at the balance sheet date.
The components of net assets are converted into Japanese yen at their historical rates. Profit and loss accounts for the
fiscal year are converted into Japanese yen by using the average exchange rate during the fiscal year. Differences inyen amounts arising from the use of different rates are presented as “Foreign currency translation adjustment” and “Noncontrolling interests” in the net assets.
(m) Inventories
Stated at cost mainly determined by the gross average method (figures on the consolidated balance sheet are measured by
the method of book devaluation based on the reduction of profitability).
(n) Method of depreciation and amortisation of significant depreciable assets
a. 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 15 years
b. Intangible assets (excluding lease assets)	����������������� Straight-line method
c. Lease assets
Finance leases which transfer ownership	����������������� The same method as depreciation and amortisation of self-owned noncurrent assets.
Finance leases which do not transfer ownership	����������������� Straight-line method with the lease period as the durable years. With respect to lease assets with guaranteed residual value under lease agreement, remaining value is the guaranteed residual value. With respect
to other lease assets, remaining value is zero.

— 28 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(o) Income taxes
The provision for income taxes is computed based on the income before income taxes included in the consolidated statements of income. The asset and liability approach is adopted to recognise deferred tax assets and liabilities for the expected
future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.
In making a valuation for the possibility of collection of deferred tax assets, the Company and its subsidiaries estimate their
future taxable income reasonably. If the estimated amounts of future taxable income decrease, deferred tax assets may decrease and income taxes may be posted.
Consolidated tax payment has been applied to the Company and its domestic wholly owned subsidiaries from the fiscal year
ended 31 March 2012.
(p) Retirement benefits
With respect to calculation of retirement benefit obligations, benefit formula basis method is used to attribute expected benefit
to period up to the end of this fiscal year. With respect to past service costs, they are treated as expense on a straight line basis over the certain years within the period of average length of employees’ remaining service years at the time when it occurs.
With respect to the actuarial gain or loss, the amounts, prorated on a straight line basis over the certain years within the periodof average length of employees’ remaining service years in each year in which the differences occur, are respectively treatedas expenses from the next term of the year in which they arise.
Retirement benefit cost and retirement benefit obligation are calculated based on the actuarial assumptions, which include
discount rate, assumed return of investment ratio, revaluation ratio, salary rise ratio, retirement ratio and mortality ratio. Discount rate is decided based on yield on low-risk and long-term bonds, and assumed return of investment ratio is decided
based on the investment policies of pension assets of each pension system etc.
Decreased yield on long-term bond leads to a decrease in discount rate and it has an adverse influence on the calculation ofretirement benefit cost. However, the pension system adopted by the Company has a cash balance type plan, and thus therevaluation ratio, which is one of the base ratios, can reduce adverse effects caused by the decrease in discount rate.
If the investment yield of pension assets is less than the assumed return of investment ratio, it will have an adverse effect on
the calculation of retirement benefit cost. However, by focussing on low-risk investments, this influence should be minimal in
the case of the pension fund systems of the Company and its subsidiaries.
(q) Net income per sharePrimary net income per share is computed based on the weighted average number of shares issued during the respective
years. Fully diluted net income per share is computed assuming that all stock options are exercised. Cash dividends per
share are the amounts applicable to the respective periods including dividends to be paid after the end of the period.
(r) Cash and cash equivalents
All highly liquid investments with original maturities of three months or less when purchased are considered cash equivalents.
(s) Reclassification
Certain reclassifications of previously reported amounts are made to conform to current classifications.
(t) New accounting standards to be applied(1) “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, revised on 16 February 2018)“Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26, revised on 16 February 2018)
1) Outline
These guidances change the treatment of taxable temporary differences pertaining to shares of subsidiaries andaffiliates in non-consolidated financial statements, and clarify the treatment of recoverability of deferred tax assets for anentity classified as type 1.
2) Scheduled date of application
The aforementioned guidances are scheduled to be applied at the start of the fiscal year ending 31 March 2019.
3) Effect of application of the accounting standards
The effect of the application of the aforementioned guidances on the Group’s consolidated financial statements is underevaluation.
(2) “Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, issued on 30 March 2018)“Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30, issued on 30 March 2018)
1) Outline
The aforementioned standard and guidance are comprehensive revenue recognition standards. Revenue is recognisedby applying the following steps:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognise revenue when (or as) the entity satisfies a performance obligation
2) Scheduled date of application
The aforementioned standard and guidance will be applied at the start of the fiscal year ending 31 March 2022.
3) Effect of application of the accounting standards
The effect of the application of the aforementioned standards and guidance on the Group’s consolidated financial statements is under evaluation.
— 29 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 3: Impairment loss
The Group recorded impairment loss in the following group of assets as of 31 March 2017.
Use
Assets for automobile business

Location
Thailand
Asia

Assets for motorcycle business

Asia

Assets for other business
Assets for rent
Idle assets

Japan
Japan
Japan

Classification
Machinery, equipment and vehicles, tools,
furniture and fixtures, etc.
Machinery, equipment and vehicles, etc.
Machinery, equipment and vehicles,
buildings and structures, etc.
Land
Land
Land
Total

Amount(Millions of yen)
26,346
296
5,192
1,496
6,007
597
39,936

The assets are divided into groups of the assets for business and the assets for rent respectively, mainly in units of business facilities. With respect to the assets which are decided to be disposed and idle assets which are not expected to be used in the future,
tests of impairment are conducted based on individual assets.
[Assets for business](Suzuki Motor (Thailand) Co., Ltd,)
Suzuki Motor (Thailand) Co., Ltd, a fully owned subsidiary of the Company in Thailand commenced its automobile production in
March 2012, sells its product in theThailand's domestic market and exports worldwide. However, due to slowdown in the domestic
market as well as appreciation of Thai Baht, the performance of the automotive business in Thailand has remained at low level. In
FY2016, the Company carried out the examination on future recoverability of the business assets of Suzuki Motor (Thailand) Co.,
Ltd. Since the examination indicated that the recoverable amount fell below the book value of the assets, the Company decided
to record an impairment loss.
(Others)
Since the examination indicated that the recoverable amount fell below the book value of the assets, the Company decided torecord an impairment loss.
[Assets for rent and idle assets]
The Company reduced the book value of the group of the assets whose market value particularly fell to the recoverable amountand recorded an impairment loss.
The impairment loss consists of ¥6,696 million for buildings and structures, ¥15,320 million for machinery, equipment andvehicles, ¥7,294 million for tools, furniture and fixtures, ¥8,101 million for land, and ¥2,523 million for construction in progress.
The recoverable amount of the asset group is measured by net selling price or value in use, and the land value is evaluated byprice calculated on a rational basis.
The Group recorded impairment loss as of 31 March 2018.
This information is not provided due to its low materiality.

NOTE 4: Financial Instruments(a) Matters for conditions of financial instrumentsa. Policy for financial instruments
With respect to the fund management, the Group uses short-term deposits and short-term investment securities, and withrespect to the fund-raising, the Group uses borrowings from financial institutions such as banks and issuance of bonds.
The Group uses derivatives to hedge and manage the risks of the fluctuations of interest rates and exchange rates, anddoes not use derivatives for speculation purposes.
b. Type of financial instruments, risks and risk management
With respect to customers’ credit risks from operating receivables such as notes and accounts receivable-trade, in order tomitigate the risks, the Group identifies credit standing of major counterparties and manages due date and receivable balance of each counterparty in line with our rules and regulations for credit control. The Group hedges the risks of the fluctuation exchange rate from operating receivables denominated in foreign currency by forward exchange contract in principle.
Investment securities are mainly stocks of companies with which the Group has business relationship, and with respect tolisted 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.

— 30 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Applications of borrowings are fund for operating capital (mainly short-term) and capital expenditures (long-term), and theGroup uses interest-rate swaps or cross currency interest rate swaps for the risks of the fluctuation of interest rate and exchange rate of some long-term borrowings.
Objectives of derivative transactions are foreign currency forward contracts to hedge the risks of the fluctuation of exchange
rate related to receivables and payables denominated in foreign currencies, interest rate swaps to hedge the risks of thefluctuation of interest rate related to borrowings, and cross currency interest rate swaps to hedge the risks of the fluctuation of
exchange rate and interest rate related to borrowings and lending. The Group executes and manages derivatives within theactual demand in line with our rules and regulations which set out the authority to trade. In addition, in using derivatives, theGroup deals with financial institutions which have high credit grade in order to reduce credit risks.
In addition, each company of the Group manages liquidity risk related to accounts payable and borrowings by making afinancial plan.
c. Supplement to fair values of financial instruments
Fair values of financial instruments include values based on quoted prices in active markets and values assessed byrational valuation techniques in case quoted prices are not available. Since the rational valuation techniques include variable factors, the results of valuation may differ when different assumptions are applied. In addition, in Note 4 (d) Derivativetransactions, contract amounts do not present market risks for the derivative transactions.

(b) Matters for fair values of the financial instruments
Carrying amounts in the consolidated balance sheet, fair values and difference as of 31 March 2018 and 2017 were as follows. Financial instruments whose fair value cannot be reliably measured are not included in the below table.
Millions of yen
2017

2018

(1) Cash and deposits(2) Notes and accounts receivable-trade(3) Short-term investment securities andInvestment securities
Available-for-sale securities
Investments in affiliates
Total of assets(1) Accounts payable-trade(2) Short-term loans payable(3) Current portion of long-term loans payable(4) Accrued expenses(5) Bonds with subscription rights toshares(6) Long-term loans payable
Total of liabilities
Derivatives
Hedge accounting is applied
Hedge accounting is not applied

Fair value

Difference¥ 690,418
391,536¥

Carrying
amount¥ 693,952
349,224¥ 693,952
351,454¥753,949725¥1,834,065
443,916
97,59893,157215,335

753,949
3,300¥1,839,205
443,916
97,59893,235215,335—
636,1022,575
660¥ 5,139 ¥1,679,940—
428,063—
96,643(78)
119,958—
191,068

636,102
2,104¥1,683,613
428,063
96,643
119,809
191,068—
1,443¥ 3,673——148—

194,211275,825

200,400

251,450(51,050)

192,943¥ 1,237,163

192,920¥1,318,831

23
222,870¥(81,668) ¥1,259,003

221,236¥1,308,270

1,634¥(49,267)

153
51

153
51

1,544
296

1,544
296

—
—

Carrying
amount¥ 690,418
388,973

Fair value

Difference—
2,563(81,613)

—
—

—
2,229

* Assets or liabilities derived from derivatives are shown on a net basis and net liabilities are shown as ( ).

*1. Matters for methods used to measure fair values of financial instruments
Assets:(1) Cash and deposits
Since fair values of deposits are approximately equal to the book values, book values are used as fair values.
(2) Notes and accounts receivable-trade
Fair values of sales finance receivables are calculated on the discount method by the expected rate applied to newloan contract, on each receivable classified into a certain term.
Notes and accounts receivable-trades except sales finance are settled in short term and those fair values are approximately equal to the book values. Therefore, book values are used as fair values.
(3) Short-term investment securities and Investment securities
With respect to these fair values, fair values of stock are prices of exchanges. With respect to negotiable certificate
of deposit and other types of securities, book values are used as fair values because they are settled in short term
and those fair values are approximately equal to the book values.
— 31 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Liabilities:(1) Accounts payable-trade, (2) Short-term loans payable and (4) Accrued expenses
Since these are settled in short term and those fair values are approximately equal to the book values, such bookvalues are used.
(3) Current portion of long-term loans payable and (6) Long-term loans payable
These fair values are measured by discounting. The discounting is based on the estimated interest rates at whichsimilar new loans with same amount of principal and interest could have been borrowed.
(5) Bonds with subscription rights to sharesWith respect to fair values of bonds with subscription rights to shares, they are calculated based on the prices offered by financial institutions, etc.
Derivatives:
Please refer to Note 4 (d) Derivative transactions.

*2. Financial instruments whose fair value cannot be reliably determined

Millions of yen

2018

2017

Unlisted stock other than stocks of affiliates.....

¥17,682¥17,188

Unlisted stock of affiliates..............................

24,943

20,514

Others.............................................................

2,880

77

Available-for-sale securities

These fair values cannot be reliably measured because market values are unavailable and future cash flows cannot be
estimated. Therefore, they are not included in “(3) Short-term investment securities and Investment securities” of assets.

*3. The amounts to be redeemed after the account settlement date of monetary receivables and available-for-sale securities
Millions of yen
2017

2018
Within1 yearCash and deposits
Notes andaccounts
receivable- trade
Securities andinvestment
securities withmaturities
Total¥ 690,418

Over 1 year,
Within5 years¥

Over 5 years,
Within
10 yearsOver
10 years

Over 1 year,
Within5 years

Over 5 years,
Within
10 yearsOver
10 years

—

¥ —

¥—

122,412409—

338,756—¥1,259,111 ¥122,412

—
¥409

—
¥—

Within1 year—¥ 693,952 ¥

462—

226,403—¥462

16,000¥16,000—¥ —244,273

144,236

256,695¥1,191,387—¥144,236— 32 —¥SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(c) Securities
a. Available-for-sale securities with market value
Millions of yen

2018
Carrying
Amount2017

Acquisition
cost

Difference

Carrying
AmountAcquisition
cost

Difference¥ 87,608¥127,569¥ 50,691¥ 76,878

Securities for which the carrying amount exceeds the acquisition costs
Stocks.....................................................

¥ 45,588¥133,196

Bonds.....................................................

—

—

—

—

—

—

Others.....................................................

562,361

490,62171,739477,832

413,408

64,423

Sub-Total¥695,558¥536,210¥159,348¥605,401¥464,100¥141,301¥¥¥

Securities for which the carrying amount does not exceed the acquisition costs
Stocks.....................................................

¥

¥

5,546

5,703

¥

(157)

700

758

(58)

Bonds.....................................................

12,84416,000(3,155)———

Others.....................................................

40,00040,000—30,00030,000—Sub-Total¥ 58,391¥ 61,703¥ (3,312)¥ 30,700¥ 30,758¥

Total¥753,949¥597,913¥156,035¥636,102¥494,858¥141,243(58)

b. Available-for-sale securities soldMillions of yen

2018

2017

Amounts sold......................................................................

¥837,716¥337,540

Gains on sales of available-for-sale securities..................

1,281

47,775c. Marketable securities impaired / Loss on valuation of securities
Year ended 31 March 2017
The Group recognised impairment of 0 million yen on available-for-sale securities. With respect to impairing securities
with a market value, if the market value at the end of the period has significantly declined compared to the acquisition
cost, the Group recognises impairment to the extent deemed necessary based on recoverability. With respect to impairing securities without a market value, if the real price has significantly declined compared to the acquisition cost, theGroup recognises impairment to the extent deemed necessary based on recoverability.
Year ended 31 March 2018
The Group recognised impairment of 352 million yen on available-for-sale securities (53 million yen on available-for-salesecurities with market value and 299 million yen on shares of unconsolidated subsidiaries). With respect to impairing
securities with a market value, if the market value at the end of the period has significantly declined compared to the acquisition cost, the Group recognises impairment to the extent deemed necessary based on recoverability. With respect toimpairing securities without a market value, if the real price has significantly declined compared to the acquisition cost,
the Group recognises impairment to the extent deemed necessary based on recoverability.

— 33 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(d) Derivative transactions
The contract/notional amounts of derivatives which are shown in the below table do not represent the Group’s exposure tomarket risk. With respect to fair values of derivatives which are shown in the below tables, commodity transactions 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
Millions of yen(1) Currency-related transactions (non-market transactions)
2017

2018
Type
Foreign currency
forward contracts
Selling
USD
BuyingUSD
EUR
JPY
Cross currency
Swap
Buying
JPY
Total

Contract/
notional
amount¥Amountdue after
one year

Fair value

Gain(loss)

¥

¥

432

¥—

3

13,015
1,239
8,500

—
—
—

44
2
304

—
¥23,187

—
¥—

—
¥355

Contract/
notional
amountContract/
notional
amount2018
Amountdue after
Fair value
one yearGain(loss)

¥

¥

¥—

44
2
304

17,432
1,377
13,500

—
—
—

(371)
(6)
221

(371)
(6)
221

—
¥355

13,000¥45,875

—
¥—

354
¥199

354
¥199

(2) Interest and currency related transactions (non-market transactions)
Type

Fair value

565

3

¥

Amountdue after
one yearGain(loss)

2

2

Millions of yen
Contract/
notional
amount2017
Amountdue after
Fair value
one yearGain(loss)

Cross currencyinterest rate swap
Pay fixed
receive floating
Pay INR
receive USD¥ 2,576

¥858

¥ 96

¥ 96

¥—

¥—

¥—

¥—

Pay fixed
receive floating
Pay THB
receive USD

13,747

—

(83)

(83)

—

—

—

—

Pay fixed
receive floating
Pay IDR
receive USD

2,656

—

(105)

(105)

—

—

—

—

Total

¥18,980¥858¥ (91)¥ (91)

¥—

¥—

¥—

¥—

— 34 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(3) Commodity-related transactions (market transactions)

Millions of yen
2017

2018
Type

Contract/
notional
amountAmountdue after
one year

Fair value

Gain(loss)

Contract/
notional
amountAmountdue after
one year

Fair value

Gain(loss)

Commodity
futures contract
BuyingTotal¥5,129¥—¥(212)¥(212)¥2,376

¥—

¥96

¥96

¥5,129¥—¥(212)¥(212)¥2,376

¥—

¥96

¥96

(4) Earthquake-related transactions
Since fair values for derivative contract relating to earthquakes were not measured due to characteristic of instruments, they
are not accounted for at fair values.
b. Derivative transactions to which hedge accounting is applied(1) Currency-related transactions

Millions of yen

2018
Type
Contract/
Amount due
Contract/
Fair value
notional amount after one year
notional amountForeign currency forward contracts (Principle hedge accounting)Selling (Principal hedged item: Accounts receivable-trade)USD¥ 2,128¥—¥ (2)¥ 8,074
EUR
8,314
—
136
—
CAD
238
—
0
—
AUD
2,617
—
68
2,703
NZD
937
—
10
714
GBP
5,017
—
4
779
MXN
3,369
—
(55)
1,095
PLN
1,286
—
23
1,115
Buying (Principal hedged item: Accounts payable-trade)
THB
697
—
(0)
2,555
USD
111
—
1
16
Buying (Principal hedged item: Current portion of long-term loans payable)
JPY
10,000—144—
Foreign currency forward contracts (Exceptional hedge accounting)Selling (Principal hedged item: Accounts receivable-trade)
USD
998
—
*
3,931
EUR
13,588—*
11,930
CAD
153
—
*
236
AUD
403
—
*
775
NZD
625
—
*
451
GBP
7,900
—
*
10,020
MXN
819
—
*
1,677
PLN
3,879
—
*
1,768
CNY
1,063
—
*
—
Buying (Principal hedged item: Accounts payable-trade)
THB
2,191
—
*
3,373
Total
¥66,342¥—¥330¥51,2212017
Amount due
after one year

Fair value

¥—
—
—
—
—
—
—
—

¥ 753
—
—
307
59
19
(32)
(11)

—
—

8
0

—

—

—
—
—
—
—
—
—
—
—

*
*
*
*
*
*
*
*
—

—
¥—

*
¥1,103* Since these foreign currency forward contracts are handled together with hedged items, their fair values are included in that of hedged items.

— 35 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(2) Interest and currency related transactions

Millions of yen

2018
2017
Principal
Type
Contract/
Amountdue
Contract/
Amountduehedged item
Fair value
notional amount after one year
notional amount after one year
Interest rate swap (special exceptional hedge accounting)
Pay fixed
Long-term
receive floating debt
¥ 12,500¥12,500*¥ 12,500¥ 12,500
Cross currency interest rate swap (Principle hedge accounting)
Pay fixed
receive floating
Pay IDR
receive USD
20,504
16,467(176)
13,631
4,599
Long-termdebt
Pay fixed
receive floating
Pay THB
receive USD———
13,181
13,181
Pay fixed
receive floating
Current
Pay IDR
portion ofreceive USD———
11,219—long-term
Pay fixed
loans
receive floating payable
Pay IDR
receive JPY———
10,000—
Cross currency interest rate swap (Integration hedge accounting)
Pay fixed
receive floating
Pay JPY
receive USD
59,172
59,172*
129,172
59,172Long-termdebt
Pay fixed
receive fixed
Pay JPY
receive EUR
11,30011,300*11,30011,300
Pay fixed
receive floating
Pay CNY
—
—
—
243
243
receive JPY
Long-term
receivable
Pay fixed
receive floating
Pay INR
receive USD
—
—
—
2,720
2,720
Total
¥103,476¥99,439¥(176)¥203,967¥103,717

Fair value

*

(89)

1,086

(430)

(126)

*

*

*

*
¥440

* Since these cross currency interest rate swap transactions are handled together with hedged items, their fair values are included in that of hedged items.

— 36 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 5: Bonds with subscription rights to shares(1) Name of the bond(2) Total issue amount(3) Issue price(4) Offer price(5) Balance as of 31 March 2018
(Millions of yen)
(6) Coupon(7) Closing and issue date(8) Redemption price(9) Redemption at maturity, Early redemption
and Cancellation by acquisition(10) Matters concerning the stock acquisitionrightsi. Type of share to be issued upon
exercise of the stock acquisition rights
ii. Total number of stock acquisition rights
iii. Conversion priceiv. Exercise period and Supplementary
conditions

v. Asset and amount to be paid upon
exercise of the stock acquisition rights
vi. Capital stock and capital surplus
increased in case the stocks areissued by exercising stock acquisitionrightsvii. Adjustments of the conversion price(11) Security or guarantee(12) Use of proceeds

SUZUKI MOTOR CORPORATION Euro Yen Zero Coupon(subject to the maximum number of shares to be delivered)
Convertible Bond due 2021
100 billion yen plus the aggregate principal amount of thebonds in respect of replacement certificates of the bonds withstock acquisition rights
100.5% of principal amount103.0% of principal amountSUZUKI MOTOR CORPORATIONEuro Yen Zero Coupon (subject to the
maximum number of shares to bedelivered) Convertible Bond due 2023
Same as on the left
100.0% of principal amount
102.5% of principal amount

94,261

99,950Zero
1 April 2016
100% of principal amount
31 March 2021 by 100% of principal amount
Early redemption and cancellation by acquisition by the bonds
under certain circumstances are specified in the Information
Memorandum.

Same as on the left
Same as on the left
Same as on the left

Common stock of the Company

Same as on the left

10,000 units plus the units of the aggregate principal amountof the bonds in respect of replacement certificates of thebonds with stock acquisition rights divided by 10 million yen
4,116.3 yen (please refer to vii.)
From 15 April 2016 to 17 March 2021
[Automatic-acquisition-upon-exercise clause (subject to the
maximum number of shares to be delivered)]
Exercising by 31 December 2020
[One-time acquisition clause (subject to the maximum numberof shares to be delivered)]
Giving notice from 31 March 2020 to 16 December 2020

31 March 2023 by 100% of principal
amountSame as on the left

Same as on the left
Same as on the left
From 15 April 2016 to 17 March 2023
[Same as on the left]
Exercising by 31 December 2022
[Same as on the left]

Giving notice from 31 March 2022
to16 December 2022
[Contingent conversion mechanism (130%)][Same as on the left]
Until 31 December 2020
Until 31 December 2022
The bonds in respect of the relevant stock acquisition rights shall be contributed upon exercising ofeach stock acquisition right, and the price of the bonds shall be equal to the principal amount of thebonds.
The amount of capital stock increased in case the stocks are issued by exercising stock acquisitionrights shall be half of the maximum increase of capital stock and etc., calculated in accordance with
Article 17 of the ‘‘Company Calculation Ordinance,’’ and any amount less than one Yen arising fromsuch calculation shall be rounded up. The increase in capital surplus shall be obtained by subtracting
the capital stock increased from the maximum increase of capital stock and etc.
The dividend of fiscal year end retained earnings was approved as 44 Yen per share and the annual
dividend was determined as 74 Yen per share during the Ordinary General Meeting of Shareholders
held on 28 June 2018.
By the approval and determination, the conversion price of Euro Yen Zero Coupon (subject to the
maximum number of shares to be delivered) Convertible Bond due 2021 and Euro Yen Zero Coupon(subject to the maximum number of shares to be delivered) Convertible Bond due 2023 have beenadjusted to 4,093.1 Yen retroactively since 1 April 2018 in accordance with the clause of Adjustmentsof the Conversion Price in the guideline for the bonds.
None
Proceeds from the issuance of the bonds shall be used as strategic investment for accelerating theGroup’s mid-term management plan and for strengthening its competitive position.

NOTE 6: Short-term debts and long-term debts
Millions of yen

2018

2017

¥190,755¥216,601

Short-term loans payable and Current portion of long-termloans payable
Unsecured..........................................................................
Lease obligations due within one year..............................

— 37 —

11

12¥190,766¥216,613

SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Long-term debts were as follows:
Millions of yen

2017

2018
Long-term loans payable maturing through 2022
Unsecured..........................................................................

¥192,943¥222,870

Lease obligations due more than one year...........................

13

7

Other interest-bearing debts (Long-term guarantee deposited)....

13,217

12,540¥206,175¥235,419

As is customary in Japan, both short-term and long-term bank loans are subjected to general agreements which provide that thebanks may, under certain circumstances, request additional security for those loans, and may treat any security furnished to thebanks, as well as cash deposited with them, as security for all present and future indebtedness.

The aggregate annual maturities of long-term debts excluding other interest-bearing debts as of 31 March 2018 were as follows:Year ending 31 MarchMillions of yen

2020........................................................................................

¥ 54,496

2021........................................................................................

33,0202022........................................................................................

105,439

Thereafter................................................................................

0¥192,956

Assets pledged as collateral as of 31 March 2018:
Millions of yen

Buildings and structures........................................................

¥524

Land........................................................................................

97
¥621

Secured liabilities as of 31 March 2018:
Millions of yen

Others (noncurrent liabilities).................................................

¥228

NOTE 7: Loan commitment
The Company has the commitment line contracts with six banks for effective financing. The outstanding balance of thesecontracts was as follows:
Millions of yen

2017

2018
Commitment line contract total..............................................

¥250,000¥250,000

Actual loan balance................................................................

——¥250,000¥250,000

Variance— 38 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 8: Retirement and severance benefits
1. Outline of adopted retirement benefit systems
The Company established cash balance corporate pension plan and lump-sum retirement benefit plan. Some of consolidated subsidiaries established defined benefit corporate pension plan and lump-sum retirement benefit plan. Some of foreign consolidated subsidiaries established defined contribution plan.
Some of consolidated subsidiaries adopt simplified method 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 retirement of benefit obligation................
Service cost...........................................................................
Interest cost...........................................................................
Actuarial differences..............................................................
Retirement allowance paid...................................................
Past service cost...................................................................
Others....................................................................................
Closing balance of retirement benefit obligation

2018

2017

¥162,076
8,719
467
309
(5,388)423
282¥166,888¥152,161
8,706
754
1,832
(5,844)100
4,364¥162,076(b) Reconciliation of pension assets from the opening balance to the closing balance
Millions of yen

2018

2017

Opening balance of pension assets.....................................

¥ 99,021¥95,865
1,698

Expected return on pension assets......................................

1,741

Actuarial differences..............................................................

(980)

(671)

Contribution from employers.................................................

5,688

5,254

Retirement allowance paid...................................................

(3,808)(3,599)Others....................................................................................

44

473

¥101,706¥99,021

Closing balance of pension assets(c) Reconciliation between closing balance of retirement benefit obligation and pension assets and net amount of liability/asset
for retirement benefits recognised in consolidated balance sheet
Millions of yen

2018

2017

Defined benefit obligation of funded severance plan..........

¥115,760¥112,320

Pension assets........................................................................

(101,706)(99,021)

14,053

13,299Defined benefit obligation of unfunded severance plan......

51,12849,755

Net amount of liability and asset for retirement benefits
recognised in consolidated balance sheet...........................

¥65,181¥63,055

Liabilities for retirement benefits............................................

¥65,224¥63,099

Assets for retirement benefits................................................

(42)

(44)

Net amount of liability and asset for retirement benefits
recognised in consolidated balance sheet...........................

¥65,181¥63,055— 39 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(d) Breakdown of retirement benefit expenses
Millions of yen

2017

2018
Service cost............................................................................

¥8,719¥8,706

Interest cost............................................................................

467

754

Expected return on pension assets.......................................

(1,741)(1,698)

Recognition of actuarial gains and losses............................

950

1,875

Amortisation of past service cost...........................................

1

(333)

Others.....................................................................................

(197)

110

Total amount of retirement benefit expenses
for defined benefit plans........................................................

¥8,199¥9,415(e) Adjustment for retirement benefits
Breakdown of adjustment for retirement benefit recognised were as follows:
Millions of yen

Past service cost....................................................................

2018¥(340)

2017¥(433)

Actuarial gains and losses.....................................................

(435)

(447)

Total

¥(776)¥(881)(f) Accumulated adjustment for retirement benefits
Breakdown of accumulated adjustment for retirement benefit recognised were as follows:
Millions of yen

Unrecognised past service cost............................................

2018¥(2,932)2017¥(2,591)

Unrecognised actuarial gains and losses.............................

(12,321)(11,885)

Total¥(15,253)¥(14,477)(g) Pension assets
a. Major breakdown of pension assets
Portion of major components to total pension assets were as follows:
2018

2017

Debt securities........................................................................

41.7%

45.4%

General account of life insurance companies......................

38.7%

37.6%

Others.....................................................................................

19.6%

17.0%

Total

100.0%

100.0%

b. Method to determine long-term expected return on pension assets
Expected return on pension assets were determined by considering the current and anticipated future portfolio of pension assets and current and anticipated future long-term performance of various asset classes that comprise pension
assets.
(h) Actuarial assumptions
2018

2017

Discount rate..........................................................................

mainly 0.15%

mainly 0.15%

Expected long-term return on pension assets......................

mainly 1.80%

mainly 1.80%

3. Defined contribution plan
Year ended 31 March 2017
Contribution to defined contribution plan by the Company and consolidated subsidiaries was 340 million yen.
Year ended 31 March 2018
Contribution to defined contribution plan by the Company and consolidated subsidiaries was 231 million yen.

— 40 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 9: Income taxes(a) Breakdown of deferred tax assets and deferred tax liabilities by their main occurrence causes
Millions of yen

2018

2017

Impairment loss and Excess-depreciation........................

¥67,553¥54,224

Various provisions...............................................................

45,921

38,171

Unrealised profits elimination.............................................

21,16021,698Loss on valuation of securities...........................................

13,37912,586

Deferred assets ..................................................................

2,601

3,210

Others..................................................................................

55,42066,259Deferred tax assets

Deferred tax assets sub-total..........................................

206,035

196,151

Valuation allowance............................................................

(34,011)(38,934)

Deferred tax assets total.................................................

¥172,024¥157,217¥(20,256)¥(19,590)

Deferred tax liabilities
Valuation difference on available-for-sale securities.........
Variance from the complete market value method of
consolidated subsidiaries..................................................

(8,090)(8,682)

Reserve for advanced depreciation of noncurrent assets....

(3,850)(3,678)Others..................................................................................

3,630

8,279

Deferred tax liabilities total...............................................

(28,566)(23,671)

Net amounts of deferred tax assets...................................

¥143,458¥133,545* Net amounts of deferred tax assets are included in the following accounts in the consolidated balance sheets.
Millions of yen

2018

2017

Current assets – Deferred tax assets.................................

¥122,092¥113,845

Investment and other assets – Deferred tax assets..........

23,471

21,140Current liabilities – Deferred tax liabilities..........................

(929)

(55)

Noncurrent liabilities – Deferred tax liabilities....................

(1,175)(1,384)(b) Breakdown of the differences between the statutory tax rate and the effective tax rate
2018

2017

Statutory tax rate.....................................................................

30.21%

30.21%Tax rate difference..............................................................

1.64%

4.15%

Tax credit.............................................................................

(2.30)%(3.01)%

Others..................................................................................

(1.28)%

1.7%

Effective tax rate.....................................................................

28.28%

33.06%— 41 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 10: Selling, general and administrative expenses
Main items of selling, general and administrative expenses were as follows:
Millions of yen

2018

2017

Delivery expenses..................................................................

¥73,240¥65,210Advertising expenses.............................................................

78,50874,30356,468

Sales promotion expenses.....................................................

77,684

Wages and salaries................................................................

86,18380,426

Research and development costs.........................................

139,390

131,539

Provision of allowance for doubtful accounts........................

(209)

(651)

Provision for product warranties............................................

58,194

41,692
4,099

Retirement benefit expenses.................................................

4,214

Provision for product liability insurance.................................

1,968

12

Provision for recycling............................................................

1,434

1,865

NOTE 11: Research and development costs
Research and development costs included in selling, general and administrative expenses were as follows:

Millions of yen

Research and development costs.........................................

2018

2017

¥139,390¥131,539

NOTE 12: Cash and cash equivalents
Cash and cash equivalents were as follows:
Millions of yen

2018

2017

Cash and deposits.................................................................

¥690,418¥693,952

Short-term investment securities...........................................

256,695

338,756

Time deposits with maturities of over three months..............

(119,571)(79,920)

Bonds etc. with redemption period of over three months......

— 42 —(226,695)(338,756)¥600,846¥614,031

SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 13: Other comprehensive income
Millions of yen

2018

2017

Gain (loss) arising during the period.................................

¥42,073¥62,839

Reclassification adjustments..............................................

(24,303)(51,445)

Before tax effect..................................................................

17,76911,393

Valuation difference on available-for-sale securities

Tax effect.............................................................................

(1,732)

16,982

Balance at the end of the period........................................

¥16,036¥28,375

Deferred gains or losses on hedges
Gain (loss) arising during the period.................................

¥1,247¥5,324

Reclassification adjustments..............................................

(2,778)(4,554)

Before tax effect..................................................................

(1,530)770

Tax effect.............................................................................

297

(264)

Balance at the end of the period........................................

¥(1,232)¥505¥(35,889)¥3,634Foreign currency translation adjustment
Gain (loss) arising during the period.................................
Reclassification adjustments..............................................

(46)

—

Balance at the end of the period........................................

¥(35,936)¥3,634Gain (loss) arising during the period.................................

¥(1,240)¥(1,684)

Reclassification adjustments..............................................

464

803

Before tax effect..................................................................

(776)

(881)

Adjustment for retirement benefit

Tax effect.............................................................................

261

225

Balance at the end of the period........................................

¥(514)¥(655)

Share of other comprehensive income of associates
accounted for using equity method
Gain (loss) arising during the period.................................

¥234¥(2,318)

Total other comprehensive income................................

¥(21,411)¥29,541

NOTE 14: Cash dividends
Resolutions

Total amount of cash dividends
Cash dividends per share
Record date
Effective dateOrdinary General
Meeting of Shareholders
held on 29 June 2017¥11,914 million¥27.0031 March 201730 June 2017

Meeting of theBoard of Directors
held on 2 November 2017¥13,239 million¥30.0030 September 201730 November 2017

Dividends which record date was in the current fiscal year and effective date was in the next fiscal year:
Resolution

Total amount of cash dividends
Cash dividends per share
Record date
Effective dateOrdinary General
Meeting of Shareholders
held on 28 June 2018
¥19,439 million¥44.0031 March 201829 June 2018
— 43 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 15: Stock option plans
The Company adopts stock option plan by using subscription rights to shares.
The details of the plans were as follows:
The plan adopted at
28 June 2012

The plan adopted at
27 June 2013

The plan adopted at
27 June 2014

10 Directors of the Company(excluding Outside Directors)
6 Managing Officers who
do not concurrently serve as
Directors

7 Directors of the Company(excluding Outside Directors)
10 Senior Managing Officers
and Managing Officers who
do not concurrently serve as
Directors

6 Directors of the Company(excluding Outside Directors)
6 Managing Officers who
do not concurrently serve as
Directors

Class of shares that are
the subject of subscription
rights to shares

92,000 of Common stock of
the Company

49,800 of Common stock of
the Company

32,400 of Common stock of
the Company

Adoption date

20 July 201219 July 201322 July 2014

Terms of exercise ofsubscription rights toshares(1) A person who is allocated subscription rights to shares shall be able to exercise share subscription rights only up until 10th day (the next business day if the 10th day falls on a non-business day) from the day immediately following the date of resignation as the Company’s Director
as well as the Senior Managing Officer or Managing Officer without the role of Director being
served concurrently.
(2) If a person who is allocated subscription rights to shares was dead, the person’s heir shall beable to exercise the rights.

Period during which
subscription rights toshares can be exercised

From 21 July 2012 to 20 July
2042

From 20 July 2013 to 19 July
2043

From 23 July 2014 to 22 July
2044

Number of shares which
subscription rights toshares have not exercised

35,00020,40012,600Category and number ofpeople to whom stock
options are granted

NOTE 16: Contingent liabilities
As of 31 March 2018 and 2017, the Company and some of consolidated subsidiaries had the contingent liabilities as follows:
Millions of yen

2018
Guarantee of indebtedness of affiliates and others..........

— 44 —¥1,351SUZUKI MOTOR CORPORATION

2017¥2,051

Consolidated Financial Statement

NOTE 17: Segment Information
1. Outline of reportable segments
The reportable segments of the Company are the components of the Company business for which discrete financial information is available, and whose operating results are regularly reviewed by our decision-making body such as Board of Directors
to make decisions about resources to be allocated to the segment and to assess its performance.
The Company has three reportable segments of “Automobile business”, “Motorcycle business” and “Marine business, etc.”
based on the form of management organisation and nature of products and services.
The segment which was previously stated as “Marine and Power products, etc.” has been changed to “Marine business, etc.”from this consolidated fiscal year. This change in the segment name does not affect the segment information.
Reportable segment of the previous fiscal year is reported as a renamed segment.
Main products and services of each segment are as follows:
Segment

Main products and services

Automobile business

Minivehicles, Sub-compact vehicles, Standard-sized vehicles

Motorcycle business

Motorcycles, All-terrain vehicles

Marine business, etc.

Outboard motors, Motorised wheelchairs, Electro senior vehicles, Houses

2. Methods of measurement for the amounts of net sales, profit or loss, assets and other items for each reportable segment
The accounting policies of the reportable segments are consistent to the description of the “Summary of significant accounting
policies” (Note 2).

3. Information about the amounts of net sales, profit or loss, assets and other items by reportable segment
Millions of yen

2018
Automobile
business

Net Sales:
Net sales to external customers......
Segment profit..............................
Segment assets............................
Other content:
Depreciation.....................................
Amortisation of goodwill...................
Impairment loss................................
Investments in affiliated companies
accounted for by equity method.....
Increase in property, plant andequipment and intangible assets....

Motorcycle
business

Marinebusiness, etc.

Total

Adjustment

Consolidated¥——¥3,757,219
374,182¥3,435,802
355,027¥246,362
4,606¥75,053
14,548¥3,757,219
374,182

2,446,239

222,057

47,1052,715,402

625,425

3,340,828

136,293
69
2,366

11,281
55
17

3,302
0
201

150,877
124
2,585

—
—
—

150,877
124
2,585

29,8695,459

180

35,509—35,509198,731

13,502

1,142

213,376—

213,376

Millions of yen

2017
Automobile
business

Net Sales:
Net sales to external customers......
Segment profit (loss)....................
Segment assets............................
Other content:
Depreciation.....................................
Amortisation of goodwill...................
Impairment loss................................
Investments in affiliated companies
accounted for by equity method.....
Increase in property, plant andequipment and intangible assets....

Motorcycle
business

Marinebusiness, etc.

Total

Adjustment

Consolidated¥——¥3,169,542
266,685¥2,895,619
255,060¥206,289(930)¥67,633
12,555¥3,169,542
266,685

2,205,138

204,159

46,3752,455,673

660,311

3,115,985

150,475
1,547
33,077

9,796
54
5,343

3,124
0
1,514

163,397
1,602
39,936———

163,397
1,602
39,936

48,9573,796

87

52,841—

52,841

181,268

15,814

1,699

198,782—

198,782— 45 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(Reference information)
As reference information, operating results by geographical areas were as follows:
The amount of net sales based on external customers
Millions of yen

2018
Japan

Net sales...............................................

India¥1,116,764

Others¥1,306,616

Consolidated¥1,333,838¥3,757,219

Millions of yen

2017
Japan

Net sales...............................................

India¥1,037,546

Others¥1,018,813

Consolidated¥1,113,182¥3,169,542(Supplementary information)
The amount of net sales, operating income or loss based on location of the Company and its consolidated subsidiaries
Millions of yen

2018
Japan

Europe

Other
areas

Asia

Total

Eliminations Consolidated

Net Sales:
Net sales to external customers.... ¥ 1,381,093 ¥428,974 ¥1,782,112
Internal net sales or transfer
among geographical areas...........
Total
Operating income..............................

¥165,038 ¥3,757,219 ¥— ¥3,757,219

647,578

190,866

123,917728

963,091 (963,091)—

2,028,672

619,840

1,906,030

165,766

4,720,310 (963,091)

3,757,219

161,044

17,174

191,3155,101374,635(453)

374,182

Millions of yen

2017
Japan

Europe

Asia

Other
areas

Total

Eliminations Consolidated

Net Sales:
Net sales to external customers....
Internal net sales or transfer
among geographical areas...........
Total
Operating income..............................

¥1,293,486 ¥344,591 ¥1,389,743¥141,721 ¥3,169,542 ¥

565,322

213,651

117,165546

1,858,809

558,242

1,506,909

142,267

137,240

13,101

121,396

4,060

896,685 (896,685)— 46 ——

4,066,228 (896,685) 3,169,542*Notes: 1. Classification of countries or areas is based on a geographical adjacency.
2. The major countries or areas belonging to classifications other than Japan:
		 (1) Europe
Hungary, Germany, United Kingdom and France
		 (2) Asia
India, Pakistan, Indonesia, and Thailand
		 (3) Other areas United States, Australia, Mexico and Colombia
3. Classification is counted based on the location of the Company and its consolidated subsidiaries.

SUZUKI MOTOR CORPORATION— ¥3,169,542

275,799(9,113)

266,685

Consolidated Financial Statement

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 consolidated
subsidiaries, which comprise the consolidated balance sheet as of 31 March 2018, and the consolidated statement ofincome, consolidated statement of comprehensive income, consolidated statement of changes in net assets and consolidated statement of cash flows for the year then ended, all expressed in Japanese Yen, and a summary of significant
accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in Japan, and for such internal control as management determines
is necessary to enable the preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in Japan. Those standards require that we comply
with ethical requirements and we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks ofmaterial misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated
financial statements in order to design audit procedures that are appropriate in the circumstances, while the purpose of
the financial statement audit is not express an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of accounting estimates
made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements present fairly, in all material respects, the financial position of Suzuki
Motor Corporation and its consolidated subsidiaries as at 31 March 2018, and their financial performance and cash flows
for the year then ended in accordance with accounting principles generally accepted in Japan.

Seimei Audit Corporation
Tokyo, Japan
28 June 2018

— 47 —SUZUKI MOTOR CORPORATION

Company Outline
1. Company NameSUZUKI MOTOR CORPORATION

2. Date of Incorporation

March 1920
June
1954
October 1990

3. Head Office

300 Takatsuka-cho, Minami-ku, Hamamatsu-shi, Shizuoka 432-8611 Japan
Website Address : http://www.globalsuzuki.com

4. Main Products

Automobiles, Motorcycles, Outboard Motors, Motorised Wheelchairs,
Electro Senior Vehicles, etc.

5. Fiscal Year-End

31 March

6. Public Accounting Firm

Seimei Audit Corporation

Incorporated as Suzuki Loom Manufacturing Co.
Name changed to Suzuki Motor Co., Ltd.
Name changed to Suzuki Motor Corporation

7. Capital and Shareholders
Capital(as of 31 March 2018)¥138,064 million

Total number of authorised shares

1,500 million

Total number of shares issued

491,018,100

Number of shareholders

28,374

Stock Listing

Tokyo Stock Exchange

Securities Code7269

Ordinary General Meeting of Shareholders

June

Record Dates• Ordinary General Meeting of Shareholders 31 March• Year-End Dividend 31 March• Interim Dividend 30 September

Shareholders’ Register Manager

Sumitomo Mitsui Trust Bank, Limited
1-4-1, Marunouchi, Chiyoda-ku, Tokyo<Ten Major Shareholders>Name of Shareholder

Number of Shares Held

Shareholding Ratio

The Master Trust Bank of Japan, Ltd. (Trust Account)37,146

8.4

Japan Trustee Services Bank, Ltd. (Trust Account)

23,5075.3

Tokio Marine & Nichido Fire Insurance Co., Ltd.

17,961

4.1

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

16,000

3.6

The Shizuoka Bank, Ltd.

13,600

3.1

Resona Bank, Ltd.

13,000

2.9

JP Morgan Chase Bank 380055

12,8592.9

Sompo Japan Nipponkoa Insurance Inc.

7,761

1.8

Nippon Steel & Sumitomo Metal Corporation

7,759

1.8

Japan Trustee Services Bank, Ltd. (Trust Account5)

7,573

1.7

(Thousands of Shares)(%)(Note) *1. Number of shares less than 1,000 is truncated.
*2. Percentage of Shareholding is calculated excluding treasury stock (49,216 thousand shares).

— 48 —SUZUKI MOTOR CORPORATION