ANNUAL REPORT 2019

Message from the President

Representative Director and President

First of all, with respect to the improper conducts regarding the final vehicle inspection in the plants that we reported to theJapanese Ministry of Land, Infrastructure, Transport and Tourism (MLIT) on 26 September 2019, we submitted our report whichcontains preventative measures for such inspection based on the results of the investigation and advice of outside experts to
the MLIT and disclosed it on 12 April 2019 while we have decided to recall vehicles related to this case. We sincerely apologise
for the enormous inconvenience and concerns this issue has caused to our various stakeholders, such as customers, partners.
The board of directors will strive to establish a compliance program, risk management and internal control systems for every
task including final inspections and strengthen supervision with a sense of serious crisis. From now on, we, the employers andemployees, will unite together with a sense of crisis, to take the necessary measures ultimately and continuously.
Now, the automobile industry is undergoing a period of great transformation. In this period of transformation, it is necessary
to have a concrete vision of what the Company should be 10 or 15 years in the future, as a long-term view, and go back to
the present from there to consider what the Company should do from now, instead of merely continuing as we are.
Around 2030, the Indian market may grow to a scale of 10 million units. If the Group can maintain its current share of 50%, itwill have a size of 5 million units. With the assumption that the Group will sell 2 million units in other markets, overall sales of
the Group will be 7 million units. These figures are theoretical values rather than a plan. The Group will continue to strive for
future growth. Also, we believe that committing to the Indian market will lead to our growth in other markets, throughdeploying the developed products worldwide.
Compared with now, it is totally uncharted territory that is more than twice as large. All employees, including the management
team, will be required to change their mindset and distribute effectively the management resources. In that sense, the efforts
we make based on this long-term view are challenges that decide the Group’s future, and they should be made promptly. We
will commit ourselves to these challenges on a company-wide basis as Team Suzuki. Instead of top-down management waitingfor direction, each and every member of the Team Suzuki will be responsible to propose voluntarily, have numerous
discussions, set the vectors in the same direction, and tackle as one toward challenges. To do so, we will nurture humanresources that can voluntarily come up with ideas and make actions, as well as make a working environment that motivatesthe employees.
Toward this long-term view, we are actively taking on ESG (Environment, Social, and Governance) issues as well.
As for environment, in addition to making our specialised small cars, we are actively taking on developing new high-efficiency
powertrain, spreading and enhancing hybrids, and newly developing EVs as well. The Group will establish the next plan after
the Suzuki Environmental Plan 2020, while also work on formulating an environmental vision based on the long-term viewthat is essential for the Group to grow continuously.
As for society, we will place product quality as the most important issue and make the utmost efforts for our customers tocontinuously use the products with ease by being quality conscious among all departments of the Company. We will also
proactively address contributions to the community, investment in people, development of human resources, and work safety.
As for governance, through fair and efficient activities, we wish to be a company trusted by all of our stakeholders, andsustainably develop by further contributing to the global society. To realise this, we will promote the corporate governancestructure in all fields including the final inspection, and strengthen the management structure and efforts for compliance.
We will work hard to establish a strong foundation to regain trust and strive to create and provide valuable products andservices to increase our enterprise value.

ANNUAL REPORT 201901

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

About Suzuki

Corporate Philosophy

Basic policy for company management
The Group has been placing “Develop products of superior value by focussing on thecustomer” as the first paragraph of the mission statement. We will constantly make the best
effort to create truly valuable products that satisfy our customers.
Under the slogan “Small cars for a big future”, we will work toward manufacture of “smallcars” and “environmentally-friendly products” which are wanted by our customers. We will
also work on lean, efficient and sound management by emphasising the “Smaller, Fewer,
Lighter, Shorter, and Neater” concept in all areas while complying with laws and prioritisingsafety and quality.

Mission statement
In 1962, Suzuki established the “Mission Statement” which indicates the corporate policy of
Suzuki. It sets goals to strive for accomplishing corporation’s social missions, for the corporate
organisation that the one belongs to, and for the one’s own self.
With the motto “products of superior value”, all employees are making daily efforts in creating
value-packed products.

Suzuki Group mission statement(established in 1962)

1. Develop products of superiorvalue by focussing on thecustomer
2. Establish a refreshing andinnovative company throughteamwork
3. Strive for individual excellence
through continuous
improvement

Message from the President

Corporate Philosophy

About Suzuki

Message from the President
Corporate Philosophy
Table of Contents
SUZUKI HISTORY
At a Glance
Global Network
Product Lineup

01
02
03
04
06
08
10

Overview

Automobile Business
Motorcycle Business
Marine Business, etc.
Special Topic

12
16
19
20

GovernanceDirectors, Auditors, and Officers
Corporate Governance22
24

Environmental and Social Initiatives

CSR Policy
Environment
Product Quality/Product Safety
Human Resources
Business Partners

32
34
36
38
42

Data Section

11-Year Financial/Non-Financial Data
Financial Review
Consolidated Financial Statement
Company Information/Stock Information

44
46
48
52

SUZUKI HISTORY

At a Glance

Global Network

Product Lineup

Editorial Policy

In order for the Suzuki Group to continuously grow for the next 100 years, the Company is promoting various
initiatives. This report is published in view of our stakeholders including shareholders, investors, and employees, tounderstand those initiatives. ESG information is fulfilled for this year by utilising the materiality point of view. Financial
and non-financial information are also available at our website.

Period Covered

The period covered by this report is FY2018 (from 1 April 2018 through 31 March 2019). However, this report also
contains descriptions on some activities taking place before or after that time period.

Information Covered

This report covers information about not only Suzuki Motor Corporation, but also domestic and overseas Suzuki Group
companies. (Unless “related companies”, “dealers”, or “overseas” is indicated in each description, the information isrelated to Suzuki Motor Corporation.)

Referred Guidelines“Environmental Reporting Guidelines 2012” by the Ministry of the Environment,
Global Reporting Initiative (GRI) Standards, etc.

Information
Disclosure System

Financial Information

Non-financial Information

Annual Report 2019 (PDF)• Business Report (PDF)• Financial Results (PDF)• Annual Stock Report (PDF)*• Corporate Profile (PDF)• CSR & Environmental Report (PDF)• Governance Report (PDF)* In Japanese language only

Caution with respect
to Forward-Looking
Statements

02

ANNUAL REPORT 2019

The forward-looking statements mentioned in this report are based on currently available information and assumptions,contain risks and uncertainty and do not constitute guarantees of future achievement.
Please note that the future results may greatly vary by the changes of various factors.
Those factors, which may influence the future results, include economic conditions and the trend of demand in major
markets and the fluctuations of foreign exchange rates (mainly U.S. dollar/Yen rate, Euro/Yen rate, Indian Rupee/Yen rate).

ANNUAL REPORT 201903

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

About Suzuki

SUZUKI HISTORY   Progressed with customers worldwide
Net Sales

Operating Income

Net Sales(billion yen)

Message from the President

Corporate Philosophy

SUZUKI HISTORY

At a Glance

Global Network* Below graph is based on non-consolidated figures until 1976, and consolidated figures from 1977.
Operating Income(billion yen)

Suzuki's historic models

400

4,000
1985
Launched GSX-R750

3,500

3,000

Product Lineup

1972
Launched GT380B

1952
Launched Power Free1956
Launched Colleda 250TT

1999
Launched Hayabusa

2019
Launched KATANA1981
Launched GSX1100S KATANA

350
2002
Launched Skywave(Burgman) 650

1983
Launched RG250G

1965
Launched T20

300
2006
Launched SX41970
Launched Jimny

1993
Launched WagonR

2,500

250

1983
Launched Cultus (Swift)
1955
Launched Suzulight2014
Launched Hustler

2004
Launched Swift1979
Launched Alto1967
Launched Suzuki Fronte

2,000

1988
Launched Escudo (Vitara)

200
2006
Launched Outboard Motor DF300

1950
A46 Single-sided automatic
four-shuttle loom

1965
Launched Outboard Motor D55

1,500

1974
Launched Motor Chair Z600

1,000

1983
Launched ATV LT125D

1974
Launched Suzuki House

Non-Consolidated accounting basis

1999
Launched Senior Car ET-4A

150

100

1985
Launched Senior Car ET102017
Launched Outboard Motor DF350A

Consolidated accounting basis

50

500

(FY)

1960

1970

1980
1970 Oct. Kosai Plant (automobile) completed

1909 Oct.
Suzuki Looms Work founded1920 Mar.
	Suzuki Loom Manufacturing
Co. incorporated
1952 June
Started Motorcycle business
1954 June	Name changed to Suzuki
Motor Co., Ltd
1955 Oct.
Started Automobile business

1962 Mar. Mission Statement established1965 Apr. Started Marine business1967 Mar.	First overseas motorcycle
production (Thailand)		Aug.	Iwata Plant (automobile)completed

04

ANNUAL REPORT 20191980 Mar.
	Established Machine
Industry Fosteringand Promoting
Foundation (present
Suzuki Foundation)
1981 Aug.
	Business tie-up with
1974 Apr. Started motorised wheelchair business
General Motors		Aug. Started housing businessCompany
1975 May	First overseas automobile
1983 Dec.
production (Pakistan)	Start of automobile
production at Maruti
Udyog Ltd.
(India, present Maruti
Suzuki India Limited)

1990

2010

2000

1990 Oct.	Name changed to Suzuki
Motor Corporation20182000 Oct.	Established Suzuki Education andCulture Foundation2012 Mar.	Production of automobiles began at Suzuki Motor(Thailand) Co., Ltd. in Thailand

1992 Oct.	Production of automobiles began at
Magyar Suzuki Corporation Ltd. in
Hungary

2013 Feb.	Established Suzuki (Myanmar) Motor Co., Ltd., asubsidiary for production of automobiles in Myanmar
2015 June Announced new mid-term management plan "SUZUKI NEXT 100"
		
Sept. Acquired all shares in Suzuki held by Volkswagen AG

1996 Nov.	Production of automobiles andmotorcycles began at Vietnam
Suzuki Corp. in Vietnam

1999 Oct.	Production of outboard motors
began at Thai Suzuki Motor Co.,
Ltd. in Thailand

2008 July Sagara Plant (automobile) completed
		Nov.	Resolved equity tie-up with
General Motors Company
2009 Dec.	Reached agreement with
Volkswagen AG for acomprehensive partnership2017 Feb.	Start of automobile production at Suzuki Motor
Gujarat Private Limited (India)
		Feb.	Concluded memorandum toward business
partnership with Toyota Motor Corporation		Dec. Established Suzuki Environmental Plan 20202018 Sept. Hamamatsu Plant (motorcycle) completed
2019 Aug.	Entered into Capital Alliance Agreement with
Toyota Motor Corporation

ANNUAL REPORT 201905

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

About Suzuki

At a Glance

Message from the President

Financial Highlights

Capital expediture/Depreciation (Millions of yen)

Net sales by geographic region (Millions of yen)
Japan

Asia

EuropeNorth America

Automobile  

Motorcycle  

268,945

Others3,871,496
3,757,219
294,210

3,871,496
3,757,219

261,13975,05370,722

246,362

268,325
65,976

3,180,659

3,169,542

266,329

257,585

67,002

56,115

404,722425,332

3,180,659

3,169,542

3,015,461

68,25363,033233,889

67,633
206,289

524,810510,643

198,782

194,457

Global Network

Product Lineup

ROE

17.9%

158,086

139,390

15.4%

213,376

13.3%

171,535

83,893
255,071

4.2%

168,315

4.1%

4.2%

163,397

134,377

62,454
3,015,461

131,031 131,539

125,896

At a Glance

ROE

R&D expenses
Ratio of R&D expenses to sales

Marine, etc.  

SUZUKI HISTORY

R&D expenses (Millions of yen)

Capital expenditure
Depreciation

Net sales by segment (Millions of yen)

Corporate Philosophy

4.1%

3.7%

9.6%

150,8776.9%
148,926

250,485
2014

372,028

2015

2016

2017

2018

2014

(FY)

2015

2016

2017

(FY)

2018

2014

2015

2016

2017

(FY)

2018

1,762,377
3,532,531

1,394,720

1,392,961

1,214,519

Total assets

3,435,802
2,895,619

Net assets

38.8%

35.9%

1,701,390
1,116,764

1,047,883

1,252,447
1,187,703

1,037,546

445,171

1,387,041

1,595,227

294,095

255,037
134,12840.9%

84,472

1,715,914

2017

2016

2015

2018

2014

(FY)

2015

2016

2018

2017

89,505-120,909-113,922

(FY)
2014

2015

2016

2017

2018

(FY)

132,589

103,586

77,75051,660-242,435

2014

383,437

366,315

2,702,008
35.4%

Cash flows from financing activities
Free cash flows

3,401,970

3,115,985

45.6%

2,701,942

Cash flows from operating activities
Cash flows from investing activities

Shareholders’ equity ratio
3,340,828

3,252,800

2,878,515

1,094,611

Cash flows (Millions of yen)

Total assets/Net assets/Shareholders’ equity ratio (Millions of yen)

1,773,145-288,564-520,361
2015

2014

-250,848-256,110-341,585

2016

2017

(FY)

2018

Non-financial Highlights
Operating income (Millions of yen)

Net income attributable to owners of the parent

Operating income
MarginDividends (Yen)374,182

Scope 3: Other indirect emissions
Scope 2: Indirect emissions from energies

488.86

Scope 1: Direct emissions from corporate activities
17.3%

178,759
159,956
15.6%

6.0%

10.0%

195,308

116,660

8.4%

8.4%

13.6%

362.5406

ANNUAL REPORT 2019

2016

2017

2018

(FY)

2014

78.63

ThailandGroup manufacturing companies in Japan

Indonesia

Suzuki

74

76.32

71.30

77.42

772

818

872

Suzuki
863

334

342

395

106

116

104

438

454

83.83

2015

2016

2017

2018

(FY)

2014

2015

2016

2017

2018

(FY)

0.54
0.51

0.56
0.56

0.61
0.60

0.62
0.62

2015

2016

2017

2018
(FY)

* Calculation range:
Suzuki Motor Corporation, 66 domestic
manufacturing and non-manufacturing subsidiaries,and 32 overseas manufacturing and nonmanufacturing subsidiaries.

Non-Consolidated

Consolidated

India

290
4
17
147

102

330

314

319

332

2014

2015

2016

2017

297
7
13

166

315
8
10

371
9
12

384
8
12

67,721
65,17962,992
61,601

213

228

24

21

57,409

186

83

44
32

No. of employees (Person)

Group manufacturing companies in Japan

770

72.42

12.1%

74

27

2015

77.37

234.98172.67

2014

18.7%

Total waste discharge amount at plants inJapan and major overseas plants (1,000t)

Overseas plants

15.1%

96,862

6.1%

Amount of water used at plants in Japanand major overseas plants (m3)

85.07

15.2%

395.26
179,424

Whole value chain: Total of Scope 1, 2, and 3

215,730
324,365

266,685

CO2 emission amount from the wholevalue chain (million t-CO2)

Cash dividends per share
Dividend payout ratio
Dividend payout ratio(excl. gain on sales of investment securities)

Net income (Millions of yen)
Net income per share (Yen)

326

2018
(FY)

20

18

18

102

93

93

114

115

2014

2015

2016

2017

2018
(FY)

14,932
14,751

2014

2015

15,26915,13820162017

15,4312018(FY)* Area subject to totalisation:
8 plants of Suzuki Motor Corporation, 9 plants of 4
companies of Group manufacturing companies inJapan, and 23 plants of 16 companies of overseas
manufacturing companies
ANNUAL REPORT 201907

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

About Suzuki

Global Network

Message from the President

Corporate Philosophy

SUZUKI HISTORY

At a Glance

Global Network

Product Lineup

As of the end of March 2019

User-friendly and high-quality SUZUKI products are favoured by customers of each country and area worldwide.

A Automobile M Motorcycle O Outboard Motor

Global Network

Sales

Domestic Plants

Major Overseas Distributors

A M O

1 SUZUKI MOTOR OF AMERICA, INC. (USA)A M O

2 SUZUKI CANADA INC. (Canada)

A M O

3 SUZUKI MOTOR DE MEXICO, S.A. DE C.V. (Mexico)

A M O

4 SUZUKI AUSTRALIA PTY. LTD. (Australia)

A M O

5 SUZUKI NEW ZEALAND LTD. (New Zealand)

A M O

6 SUZUKI MOTOR (CHINA) INVESTMENT CO., LTD. (China)

A M O

7 SUZUKI FRANCE S.A.S. (France)

A M O

8 SUZUKI ITALIA S.P.A. (Italy)

A M O

9 SUZUKI DEUTSCHLAND GmbH (Germany)

9

10
7

13
17

2

11

12

8

19
31
32

18
34

33

21
6
20
24 25 2726
28 29

Production

15

1

22
23
3

A M O 10 SUZUKI GB PLC (UK)16

A M O 11 SUZUKI AUSTRIA AUTOMOBIL HANDELS GmbH (Austria)

A M O

1 Kosai Plant

A M O

2 Iwata Plant

A M O

3 Sagara Plant

Foundry

4 Osuka Plant

A M O

5 Hamamatsu Plant

30

A M O 12 SUZUKI MOTOR IBERICA S.A.U. (Spain) umber of directly managed
Ndomestic distributors

A M O 13 SUZUKI MOTOR POLAND SP. Z.O.O. (Poland)

56 companies

A M O 14 SUZUKI AUTO SOUTH AFRICA (PTY.) LTD. (South Africa)

14
4

5
5
2

1
Production

A M O

15 SUZUKI MANUFACTURING OF AMERICA CORPORATION (USA)

A M O

A M O

16 SUZUKI MOTOR DE COLOMBIA S.A. (Colombia)

A M O

A M O

17 MAGYAR SUZUKI CORPORATION LTD. (Hungary)

A M O

A M O

18 SUZUKI EGYPT S.A.E. (Egypt)

A M O

A M O

19 JINAN QINGQI SUZUKI MOTORCYCLE CO., LTD. (China)

A M O

A M O

20 JIANGMEN DACHANGJIANG GROUP CO., LTD. (China)

A M O

A M O

21 CHANGZHOU HAOJUE SUZUKI MOTORCYCLE CO., LTD. (China)

A M O

A M O

22 TAI LING MOTOR CO., LTD. (Taiwan)

A M O

A M O

23 SUZUKI PHILIPPINES INC. (Philippines)

A M O

A M O

24 SUZUKI (MYANMAR) MOTOR CO., LTD. (Myanmar)

A M O

A M O

25 SUZUKI THILAWA MOTOR CO., LTD. (Myanmar)

A M O

A M O

26 SUZUKI MOTOR (THAILAND) CO., LTD. (Thailand)

A M O

A M O

27 THAI SUZUKI MOTOR CO., LTD. (Thailand)

A M O

A M O

28 CAMBODIA SUZUKI MOTOR CO., LTD. (Cambodia)

A M O

A M O

29 VIETNAM SUZUKI CORP. (Vietnam)

A M O

A M O

30 PT. SUZUKI INDOMOBIL MOTOR (Indonesia)

A M O

A M O

31 MARUTI SUZUKI INDIA LIMITED (India)

A M O

A M O

32 SUZUKI MOTORCYCLE INDIA PRIVATE LIMITED (India)

A M O

A M O

33 SUZUKI MOTOR GUJARAT PRIVATE LIMITED (India)

A M O

A M O

34 PAK SUZUKI MOTOR CO., LTD. (Pakistan)

ANNUAL REPORT 20193

Major Overseas Manufacturing Companies

Sales

A M O

1 Kosai Plant

Head Office

17 MAGYAR SUZUKI CORPORATION LTD.

23 SUZUKI PHILIPPINES INC.

31 MARUTI SUZUKI INDIA LIMITED (Gurgaon Plant)

31 MARUTI SUZUKI INDIA LIMITED (Manesar Plant)

33 SUZUKI MOTOR GUJARAT PRIVATE LIMITED (Gujarat Plant)

Number of bases

26 SUZUKI MOTOR (THAILAND) CO., LTD.

08

430 PT. SUZUKI INDOMOBIL MOTOR (Cikarang Plant)

Asia

EuropeNorth
America

Latin
America

AfricaMiddleEast

Oceania

Number of trading countries/
Regions

22

45

2

48

53

18

22

Number of manufacturing
companies

19

1

1

5

1

1

0

34 PAK SUZUKI MOTOR CO., LTD.

ANNUAL REPORT 201909

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

About Suzuki

Product Lineup
J JapanI India A ASEAN

Message from the President

E Europe N North America O Other

Corporate Philosophy

SUZUKI HISTORY

At a Glance

Global Network

Product Lineup* Global sales unit, sales market, and production site are based on FY2018 results.

Automobiles

SpaciaGlobal Sales Unit

XBEE
158,000

Global Sales Unit

Sales Market
J
Production Site J

Hustler
29,000

Dzire

Global Sales Unit

Sales Market
J
Production Site J

65,000Global Sales Unit

Sales Market
J O
Production Site J

Global Sales Unit

Carry
46,000

Sales Market
J O
Production Site J

Alto
Global Sales Unit
Sales Market
J
Production Site J

174,000

Global Sales Unit

295,000

Sales Market
J
Production Site J

I A O
I A O

Sales Market
J
Production Site J

I A O
I A O

113,000

Sales Market
I A O
Production Site I A

Ciaz

Celerio
83,000Global Sales Unit

Sales Market
I A O
Production Site I A O

WagonR

Global Sales Unit

Global Sales Unit

Sales Market
I A O
Production Site I

Global Sales Unit

Solio

Ertiga265,000

162,000* Global sales unit includes overseas WagonR, besides theJapanese mini WagonR (Photo: Japanese mini WagonR)

Jimny

Swift

KATANA

Access 125

60,000Global Sales Unit

(Launched in FY2019)

Global Sales UnitI A E OI O

Sales Market
J
Production Site J

Sales Market
J A E N O
Production Site J

Sales Market
I A O
Production Site I

Global Sales Unit

I A O
I O

Sales Market
J
Production Site J

397,000I A E OI A O

Sales Market
I O
Production Site I

Sales Market
I A E O
Production Site I A O* Global sales unit includes overseas Carry, etc., besides theJapanese mini Carry (Photo: Japanese mini Carry)

371,000

Vitara Brezza
Global Sales Unit 159,000

Motorcycles

V-Strom 250
512,000

Global Sales Unit

15,000

Sales Market
J A E O
Production Site O* Global sales unit includes overseas Alto, etc., besides theJapanese mini Alto (Photo: Japanese mini Alto)

Outboard Motors

VitaraGlobal Sales Unit

SX4 S-CROSS
130,000

Sales Market
J A E O
Production Site E O

Global Sales Unit

Baleno96,000

Sales Market
J I A E O
Production Site I E O

Ignis

Global Sales Unit

255,000

Global Sales Unit

113,000

Sales Market
J
Production Site I

I A E O

Sales Market
J
Production Site J

I A E O
I

Motorised Wheelchairs

DF350A

ET4D

Sales Market
J A E N O
Production Site J

Sales Market
J
Production Site J* Photo: Escudo (Japanese Vitara)

10

ANNUAL REPORT 2019

ANNUAL REPORT 201911

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Overview

Business Report (Automobile Business)

Automobile BusinessBusiness Overview (Automobile Business)
Net sales
contribution ratio

91.2%

Mini-vehicles, Sub-compact vehicles, Standard-sized vehicles

Spacia Gear

Jimny

Launched December 2018 in Japan

Launched July 2018 in Japan,
October 2018 in overseas
Photo: Jimny minicar for the Japanese market

We launched the all-new Spacia Gear, developed by incorporating tough and active SUV
design into the Spacia, a tall miniwagon-type passenger minicar. It’s offered as a new-style
SUV design car to customers who wish to use tall miniwagons more actively.

We launched the all-new Jimny minicar and compact car by completely redesigning it for
the first time in 20 years. Authentic 4WD off-road functions and performance have beenenhanced while inheriting their half a century of core concept and technologies.

ErtigaWagonR

Launched April 2018 in Indonesia,
November 2018 in India

Launched January 2019 in India

We completely redesigned the Ertiga 3-row, 7-seater MPV. It features luxurious exterior
styling that creates a sense of strength and elegance, as well as interior that offers class-[Japan]above elegance, and realises spacious cabin and luggage space. Following Indonesia,
production of the all-new Ertiga started in India, and they are exported from both countries.

main feature of the WagonR.

Overall Market

Overall Market

Total domestic automobile sales volume in FY2018 increased for the third
consecutive fiscal year by 1% to 5,260,000 units year-on-year.
Sales of mini-vehicles led the whole market with increase of 3% to 1,923,000
units year-on-year, despite slight decrease in sub-compact and standard-sized
vehicles to 3,336,000 units from 3,338,000 units in the previous fiscal year.

New car sales (total market of passenger and commercial vehicles) in India
increased in FY2018 by 240,000 units (6%) from the previous fiscal year of
4,145,000 units to a record-high of 4,385,000 units. In terms of sales volume
by country, following FY2017, India continues to be the fourth-largest market in
the world.

Suzuki Sales

Suzuki Sales

Suzuki’s domestic automobile sales in FY2018 increased for the third
consecutive fiscal year by 8% to 725,000 units year-on-year.
Suzuki’s sales of mini-vehicles increased for the second consecutive fiscal year
by 7% to 594,000 units year-on-year, mainly owing to the full-model change ofthe all-new Jimny in July and introduction of the new Spacia Gear in December.
Suzuki’s sales of sub-compact and standard-sized vehicles increased for the
fourth consecutive fiscal year by 17% to a record-high in a single year of
131,000 units year-on-year. The key driver of that growth was the all-new Jimny
Sierra (Jimny compact car) launched in July.

Suzuki’s total sales in FY2018 increased for the eighth consecutive fiscal year by
6% to a record-high of 1,754,000 units year-on-year, owing to the launch of
the all-new Ertiga, in addition to strong sales of Dzire, Swift, Baleno, and Vitara
Brezza. As of March 2019, Suzuki’s cumulative sales since starting business inIndia in 1983 is 19,646,000 units. The Company expects it to reach 20,000,000
units in the next fiscal year.

Suzuki Sales Units[Full Year Comparison: from April to March][Full Year Comparison: from April to March]+57 Thousand units (+8.5%)+100 Thousand units (+6.1%)
1,754

725
1,654
668

* Sales units are based on Suzuki research on outside data.

131

Automobile Production(Thousand units)

1,781

Automobile Sales

1,850

Special Topic[India]Suzuki Sales Units

We completely redesigned the third-generation model of the Indian WagonR compact car.
Suzuki developed the A-segment body dedicated for the Indian WagonR for the first time.
It has been made wider into a bold stance to realise roomier cabin space, which is the

Production Units/Sales Units

Marine Business, etc.

Market Overview by Region * Sales units are based on Suzuki research on outside data.

Business Policy
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 matchthe growing compact car market worldwide.
Main Products

Motorcycle Business(Thousand units)

1,654

Sub-compact andstandard-sized
vehicle

10

24

LCV

179

Vans

264

UV

46

Midsize

872

Compact

369

Mini

155

112

1,754

254
971

1,011
668
404

440

352
180

FY2017 FY2018
Japan

FY2017 FY2018
India

59

725

FY2017 FY2018
Asia(excl. India)

384

180

FY2017 FY2018
EuropeFY2017 FY2018
Japan

FY2017 FY2018
India

FY2017 FY2018
Asia(excl. India)

281

278

FY2017 FY2018
Europe182

186

FY2017 FY2018
OthersTotal overseas automobile production for FY2018 increased by 0.7% to 2,383,000 units year-on-year. Worldwide production, including Japan, also
increased by 1.7% to 3,394,000 units year-on-year. Sales of automobiles in overseas market increased by 1.8% to 2,602,000 units year-on-year, while
total global sales, including Japan, also increased by 3.2% to 3,327,000 units year-on-year.

Operating Results for FY2018
The overseas automobile net sales decreased year-on-year mainly owing to the impact of depreciation ofcurrencies of emerging countries. However, the net sales of the automobile business increased by ¥96.7
billion (2.8%) to ¥3,532.5 billion year-on-year by covering the decrease in the overseas automobile net
sales with the increase in the Japanese domestic automobile net sales, which increased year-on-year
mainly owing to the sales contribution of Spacia and XBEE. The operating income decreased by ¥51.3
billion (14.4%) to ¥303.8 billion year-on-year mainly owing to the impact of increase in various expenses,
in addition to depreciation of currencies of emerging countries.

12

ANNUAL REPORT 2019 perating results ofOautomobile business

748
594

Mini-vehicle

556

355.1
303.8

(Billion yen)
Operating income

427

Margin10.3%

8.6%

FY2017(Thousand units)(Thousand units)
FY2017FY2018FY2017FY2017* LCV=Light Commercial Vehicles
UV =Utilities Vehicles

FY2018ANNUAL REPORT 201913

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Overview

Business Report (Automobile Business)

Automobile Business

Motorcycle Business

Marine Business, etc.

Special Topic

Market Overview by Region * Sales units are based on Suzuki research on outside data.
[ASEAN][Europe][Others (Pakistan, Middle East, Africa, Latin America, and Oceania)]

Overall Market

Overall Market

Pakistan

New car sales in ASEAN in FY2018 increased by 5% to 3,604,000 units yearon-year. While Indonesia was nearly flat on the year (1,121,000 units, up 1%),and Thailand, Vietnam, and Myanmar especially recorded remarkable increase,
the Philippines decreased by 14% year-on-year owing to the impact of hike inexcise tax.

New car sales in Europe in FY2018 slightly decreased by 2% to 18,018,000
units year-on-year. The market was impacted as a result of the introduction of
new international emission gas/fuel consumption testing standards called WLTP
in the EU, and a disruption accounted with the Brexit in the UK.
Under such circumstances, countries such as Hungary (up 13% year-on-year),
Greece (up 10%), Poland (up 17%), and Russia (up 9%) saw increase.

Overall market in Pakistan increased by 2% to a record-high of 251,000 units yearon-year. Suzuki’s sales was 138,000 units with a market share of 54.2%. While
sales of 800cc models decreased owing to the impact of sales restriction to those
who have not filed their tax return, which was introduced in July 2018, Suzuki’s
sales was flat on the year owing to strong sales of WagonR and Celerio (Cultus in
Pakistan).

Suzuki Sales
Suzuki’s sales in ASEAN increased by 4% to 178,000 units year-on-year.
While the overall market in Myanmar doubled to 19,184 units (up 99% year-onyear) owing to expanded demand of local production models, Suzuki largely
increased by 172% to 11,691 units year-on-year. In the Philippines, while theoverall market decreased, Suzuki maintained nearly flat on the year at 19,636
units (down 2%). Other countries including Thailand (27,950 units) and Vietnam(7,562 units) also increased.

Suzuki Sales

Middle East

Suzuki’s sales in Europe was nearly flat on the year at 278,000 units (down 1%
year-on-year).
Italy increased for the sixth consecutive fiscal year at 34,000 units (up 7% yearon-year) owing to strong sales of hybrid variants of Swift and Ignis. France also
increased for the fifth consecutive fiscal year at 28,000 units (up 3% year-onyear). Hungary increased for the eighth consecutive fiscal year at 20,000 units(up 15% year-on-year) owing to strong sales of Vitara and S-Cross, which areproduced locally in Hungary. Suzuki also maintained the top market share in
Hungary. Poland increased for the fifth consecutive fiscal year and exceeded
10,000 units for the first time.

Overall market in the Middle East decreased by 8% to 2,046,000 units year-onyear owing to the impact of the US sanctions to Iran and economic downturn in
GCC (Gulf Cooperation Council) countries. Suzuki’s sales also decreased by 25% to12,200 year-on-year.

AfricaOverall market in Africa expanded by 3% to 1,225,000 units year-on-year. While
sales in North African countries (Egypt, Morocco, and Algeria) especially made large

increase, South Africa, the largest market in Africa, decreased by 1% year-on-year
owing to economic downturn. Suzuki’s sales expanded by 22% to 26,128 units
year-on-year. Especially in South Africa, the sales grew by 21% owing to promotionof brand awareness and the introduction of the all-new Swift in the country.

Latin America
Overall market in Latin America was flat on the year at 6,036,000 units. Sales
increased year-on-year in countries including Chile, Colombia, and Brazil, thelargest market in Latin America. Suzuki’s sales increased by 5% to 123,000 units
year-on-year, of which Chile (up 10%) and Mexico (up 34%) became record-high.

Oceania
Overall market in Oceania decreased by 5% to 1,316,000 units, and Suzuki’s sales
decreased by 7% to 24,688 units year-on-year. Suzuki was selected as No.1 brandin customer satisfaction for new cars by a research company Canstar Blue in both
Australia and New Zealand.

FY2018 Topics
Suzuki Sales Units

Suzuki Sales Units[Full Year Comparison: from April to March][Full Year Comparison: from April to March]+7 Thousand units (+4.0%)–3 Thousand units (–1.0%)

178
171

Vietnam7412Myanmar20

20

Philippines

281

278

281

278

17

11

Jimny

19

Baleno19

Celerio40

S-Cross

21
24

28

138

Thailand132

Others
43

46

Ignis

45

114

111

Indonesia

8

7

Spain

27

28

France

38

39

UK

32

34

Italy

38

37

FY2017FY2018

45

62

Swift

87

82

Vitara

FY2018- Launched full-model change of the all-new Jimny minicar and Jimny Sierra
compact car in July 2018.
- Launched the all-new Spacia Gear minicar in December 2018.

- Production of the all-new Ertiga started in April 2018 in Indonesia. It isfavoured in Indonesia, as well as in its destinations of exports including
Thailand and the Philippines.
- After launching the all-new Swift in February 2018 in Thailand, its sales largely
increased in FY2018 with 14,167 units (up 77% year-on-year). The all-new
Swift is the fourth model made by Suzuki in Thailand, and it conforms to thesecond phase of the eco-car project in Thailand.
- Production of Swift started in September 2018 in Myanmar at the Thilawa
Plant which started its operation in January 2018.

* ASEAN: Total of 5 countries (Indonesia,
Thailand, the Philippines, Myanmar, andVietnam)

FY2017FY2018

Jimny

Spacia Gear

[India]- Launched full-model change of the all-new 3-row MPV Ertiga in November
2018.
- Swift won the Indian Car of the Year (ICOTY) 2019 in December 2018. Swift is
the only car to receive the award for the third consecutive generation.
- Launched full-model change of the all-new WagonR compact passenger car in
January 2019.
- Plant B in Gujarat Plant of Suzuki Motor Gujarat Private Limited (SMG) wascompleted and started production of Swift in January 2019. The total annual
production ability of SMG became 500,000 units. Combined with Maruti
Suzuki India Limited’s production ability of 1,500,000 units, Suzuki’s
production ability of automobiles in India became 2,000,000 units.

Ertiga[Europe]- All-new Jimny made its European premiere at the Paris Motor Show in October
2018, and subsequently started its sales in Europe.
- M inor-changed model of Vitara produced in Hungary was introduced in
September 2018, and cumulative production of Vitara reached 500,000 unitsin March 2019, since its start of production in the spring of 2015.
- All-new Jimny won 2019 World Urban Car award of the World Car Awards in
April 2019 for the first time. Jimny was also selected as TOP3 of 2019 WorldCar Design of the Year.

(Thousand units)

Swift won the ICOTY

WagonR
Jimny

14

ANNUAL REPORT 2019

Swift

Germany(Thousand units)
FY2017[ASEAN][Sales breakdown by model]

826[Japan]VitaraANNUAL REPORT 201915

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Overview

Business Report (Motorcycle Business)

Automobile BusinessBusiness Overview (Motorcycle Business)
Net sales
contribution ratio

6.6%

Motorcycles, ATV

KATANA

SWISH

Unveiled October 2018

Launched May 2018 in Taiwan,
June 2018 in JapanThe all-new KATANA is a completely new model which derives from the original GSX1100S
KATANA that won the hearts of riders around the world with its avant-garde KATANASWISH is an elegant standard scooter that can even convince scooterists who have already(Japanese sword) design, when it was showcased at the Cologne Motor Show in 1980. It isarranged into a modern look and adopts sleek, sporty profile, and realises compact design.

10-inch wheels for good manoeuvrability, and filled with convenient functions andequipment.

[Japan] otorcycle production
M(ATV included)(Thousand units)

Overall Market

Overall Market (India)

Overall Market (ASEAN)

Sales of motorcycles in Japan decreased in FY2018 by 1% to 370,000 units
year-on-year. Sales of models with engine displacements of 126cm 3 andhigher*1 were flat on the year at 122,000 units. Sales of models with engine
displacements up to 125cm3 *2 decreased by 1% to 248,000 units year-on-year.
While there are structural concerns of poor demand in the domestic market suchas aging of users and decrease in younger population, it is assumed that there
was recoil reduction from FY2017, when the market saw introduction of newmodels to new categories from various brands.

Sales of motorcycles in India increased
in FY2018 by 5% to 21,177,000 units
year-on-year. Sales have slowed down
since the insurance price was raised in
September 2018 (by approx. 5% in
retail price), and the market continues
to dip below the previous year resultsfrom December.

Sales of motorcycles in the six key
ASEAN countries (Indonesia, Thailand,
Vietnam, the Philippines, Malaysia,
and Cambodia) increased by 8% to
14,182,000 units year-on-year. Except
Thailand, sales increased in fivecountries: Indonesia (up 11%),
Vietnam (up 1%), the Philippines (up19%), Malaysia (up 13%), andCambodia (up 9%).

Suzuki Sales

Suzuki Sales (India)

Suzuki’s sales decreased in FY2018 by 5% to 57,000 units year-on-year. Salesof models with engine displacements of 126cm3 and higher*1 decreased by 3%
to 13,000 units year-on-year. Sales of models with engine displacements up to
125cm3 *3 decreased by 6% to 44,000 units year-on-year. Suzuki’s sales
decreased owing to temporary suspension of production due to transfer of
production plants.

Suzuki’s sales increased by 29% to636,000 units owing to strong sales ofmass-market scooter Access 125
throughout the year. Suzuki’s market
share in scooter became 9.2%. The
Company plans to expand sales in thescooter market which is expected toincrease as the demand for commuters
continues, while also promote
refurbishment of dealer CI and educationof sales persons, so as to enhance sales
network and brand image.

experienced with many scooters. Its stylish design is accompanied with compact body and*1 Registered units including imported units*2 Factory shipments of the four Japanese manufacturers* Sales units are based on Suzuki research on outside data.

(Thousand units)

Suzuki Sales Units

1,435

184

171

152
115

Suzuki Sales Units[Full Year Comparison: from April to March][Full Year Comparison: from April to March]–3 Thousand units (–5.0%)+181 Thousand units (+14.4%)

60

1,435

57

5
5
39
4
FY2017 FY2018
Asia

Suzuki Sales (ASEAN)
Suzuki’s sales increased by 22% to357,000 units year-on-year. Sales
largely increased, especially inIndonesia (up 35%), Vietnam (up11%), the Philippines (up 21%), andCambodia (up 30%).

Motorcycle sales (ATV included)

1,576

1,431
1,254

FY2017 FY2018
Japan

Special Topic[Asia]*3 Factory shipments

Production Units/Sales Units

Marine Business, etc.

Market Overview by Region * Sales units are based on Suzuki research on outside data.

Business Policy
In April this year, we closed the motorcycle division and established the Motorcycle Company directlysupervised by the president to convert that business into a financially independent profit-making one
which can find solutions to restore business activity to normal.
The Group will aim to maintain its profitable structure through continuously remaining vigilant with suchmanagement reforms.
Main Products

Motorcycle Business

52

60

126

251cc~

1,254

57

43

44

35

8

36

8

126~250cc

112
21
72

4

FY2017 FY2018
North America

FY2017 FY2018
Others

FY2017 FY2018
Japan

FY2017 FY2018
Asia

FY2017 FY2018
EuropeFY2017 FY2018
North America

FY2017 FY2018
OthersThailandIndonesia

192

Philippines

367

China

636

India

158

16

Total overseas motorcycle production (including ATVs) for FY2018 increased by 10.7% to 1,632,000 units year-on-year. Worldwide production,
including Japan, also increased by 7.4% to 1,747,000 units year-on-year. Sales of motorcycles (including ATVs) in overseas market increased by
11.2% to 1,686,000 units year-on-year, while total global sales, including Japan, also increased by 10.6% to 1,743,000 units year-on-year.

19
96

Others2151~125cc
400

Operating Results for FY2018
The net sales increased by ¥8.7 billion (3.5%) to ¥255.1 billion year-on-year mainly owing to thesales increase in India, Indonesia and the Philippines. The operating income decreased by ¥1.0 billion(21.2%) to ¥3.6 billion year-on-year mainly owing to decrease in sales of large displacement models
in Europe.

 perating results ofOmotorcycle business(Billion yen)

30

4.6
3.6

Operating income

23

~50cc

FY2018* 50cc~125cc = factory shipments
125cc~ = units registered

492

Margin1.9%

1.4%(Thousand units)
FY2017FY2017

16

ANNUAL REPORT 2019

FY2018(Thousand units)
FY2017FY2018ANNUAL REPORT 201917

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Overview

Business Report (Motorcycle Business/Marine Business, etc.)

Automobile Business[Europe/North America]
Overall Market

Suzuki Sales

Sales of motorcycles in Europe increased in FY2018 by 12% to 1,083,000
units year-on-year. Sales in North America decreased by 2% to 511,000 units
year-on-year.

Suzuki’s sales in Europe increased by 2% to 44,000 units year-on-year owing tosales of GSX-R125, GSX-S125, and Address introduced in the second half of FY2017
went well underway in FY2018, as well as full-model change of Burgman 400 andsales expansion of SV650 which has stable demand. Suzuki’s market share became
4.1%. In North America, sales increased by 3% to 36,000 units owing to strong
sales of large on-road models. Suzuki’s market share became 7.0%.

Special Topic

Business Policy (Marine Business)
The Group will reinforce and expand its large four-stroke outboard lineup and cultivate the business andleisure markets to build the world’s top outboard brand under the brand slogan “THE ULTIMATEOUTBOARD MOTOR”.
Main Products

Net sales
contribution ratio

2.2%

Outboard Motors, Motorised Wheelchairs, Houses, etc.

[North America] Suzuki Sales Units[Full Year Comparison: from April to March][Full Year Comparison: from April to March]+1 Thousand units (–1.0%)+1 Thousand units (+3.2%)

43

Marine Business, etc.

Business Overview (Marine Business, etc.)

Market Overview by Region * Sales units are based on Suzuki research on outside data.

[Europe] Suzuki Sales Units

Motorcycle Business

44

35

9

10

Others

5

6

Spain

8

France

7

6

UK

5

5

Italy

8

8

7

36
6

DF175/150A (Unveiled September 2018)

Canada

DF175A and DF150A have enhanced driving performance andfuel efficiency by adopting advanced technologies such as highcompression ratio, lean burn, and semi-direct air intake.

8

DF175A

28

30

U.S.A.

Operating Results for FY2018

Germany(Thousand units)

FY2017

DF150A(Thousand units)

FY2018FY2017FY2018The net sales increased by ¥8.9 billion (11.8%) to ¥83.9 billion year-on-year mainly owing to sales
increase of new outboard motor DF350A in North America. The operating income increased by ¥2.5
billion (16.9%) to ¥17.0 billion year-on-year.

 perating results of marineObusiness, etc.

17.0
14.5

(Billion yen)
Operating income
Margin

19.4%

20.3%

FY2017FY2018FY2018 Topics[Japan][ASEAN]- Elegant standard scooter SWISH (125cm3) was launched in June 2018. SWISH
Limited with various equipment was launched subsequently in September.
- The 1st Japan Bike of the Year 2018 was held for the first time in December
2018, and V-Strom 250 was prized in the Mini-Sized Motorcycle Class (126 to
250cm3).

- In Indonesia, new scooter
NEX II was launched in May
2018 and new backbone
GSX150 Bandit was launched
GSX150 Bandit
in October.
- Nex II was also launched in the Philippines in August 2018.

[Europe]

SWISH

V-Strom 250[India]- New elegant scooter BURGMAN STREET was
launched in July 2018.

BURGMAN STREET18

ANNUAL REPORT 2019

- Intermot International Motorcycle,
Scooter and Bicycle Fair was heldin Cologne, Germany in October
2018, and Suzuki unveiled the
all-new KATANA, A2 specification(35kW) of naked model
GSX-S750, and motocross RMZ250.

Nex II

FY2018 Topics- A ll-new large outboard motors DF175A and DF150A were
unveiled at the Genoa Boat Show in September 2018, andlaunched worldwide including North America, Europe and Japan.

- DF325A, a large regular petrol model which adopts state-of-theart technologies including the contra-rotating propellers
common to the DF350A flagship outboard motor, was launchedworldwide including Latin America, Europe, and Japan from thespring of 2018.

DF325A

Intermot

ANNUAL REPORT 201919

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Overview

Special Topic: Approach to social issues through global business (India)

Automobile Business

Motorcycle Business

Marine Business, etc.

Special Topic

Initiatives toward structure for 5 million units

India is an important market for the Suzuki Group, with the country making significant economic growth. In line with the growth,
Suzuki is making efforts in promoting research and development, and enforcing production structure. Through these efforts, not only
do we become profitable, but various initiatives that are aimed for sustainable growth are being carried out as well, including
nurturing of human resources and permeation of traffic safety culture, for the prosperity of India.

Meets both domestic and exports needs
Maruti Udyog Ltd., a national company
which is the present day Maruti Suzuki India
Limited (Maruti Suzuki), was established in
1981. In 1982, Suzuki made a joint venturecontract with the Government of India, andproduction of the first car Maruti 800
Maruti 800
started in December 1983.
Maruti Suzuki has two plants of Gurgaon and Manesar Plants.
Since starting business in India, Suzuki has grown with our
supplier companies, and today, the local procurement rate ofparts has reached 95%. Products manufactured in India are not
only sold within the Indian domestic market, but they are also
exported to various destinations including its surrounding
countries, the Middle East, Africa, ASEAN, Europe, and Japan.
In February 2017, Suzuki Motor Gujarat Private Limited (SMG), a
100% Suzuki investment automobile production subsidiary,
started operation of its plant. SMG was established to secure
production ability to meet future automobile market growth inIndia and expansion of exports from India. In April 2018, exportsof their manufactured products started with Maruti Suzuki as
the exporter, and in January 2019, operation of Plant B started.
Vehicles and parts manufactured at SMG plants are supplied to
Maruti Suzuki and distributed through their sales channels.
While Suzuki invests 100% to SMG to cover the investments for
production, Maruti Suzuki focusses on investments for productdevelopment and sales reinforcement. This enables efficient
contribution of investments between Suzuki and Maruti Suzuki.
India has a lineup of models that are mainly compact cars, andby offering various types of models, Maruti Suzuki is making
efforts to meet versatile customer needs including first-time,
additional, replacement, and step-up users.
Product lineup
A segment

B segment

C segment

Up until the 1990’s, the market share of passenger vehicles wasover 50%.
Although the share fell below 50% later due to participation ofcompetitors, by FY2017, share rose up to 50% owing to
introduction of new models and restructuring of sales channels.
In FY2018, Maruti Suzuki sold approximately 1.73 million units
with the market share of 51.2%.
Also, in 2016, Maruti Suzuki entered into the commercial vehicle
market. The total vehicles sales of Maruti Suzuki includingcommercial vehicles in FY2018 was approximately 1.75 million
units. The company expects to reach accumulated sales of
20,000,000 units in the next fiscal year.

(2) Expansion of production ability
There are currently a total of 2 million units of annual production
ability in India with 1.5 million units for Gurgaon and Manesar
Plants in total, and 0.5 million units for SMG. Plant C of SMG iscurrently being constructed with production ability of 0.25
million units, and when this starts operation, the annual
production ability will become 2.25 million units.

(1) Expansion of sales and service channels
Currently, there are approximately 2,600 sales outlets and3,600 service bases with 43,000 sales staff. We plan to widely
expand these. There are three new car sales channels, namely
ARENA, NEXA and Commercial, and in addition, efforts arebeing made in reinforcing pre-owned car business (True Value)
and rural sales.

(3) Reinforcement of research and development
There is a facility called the Rohtak R&D Centre located in Rohtak
which is approximately 80km west of Delhi. The centre has a test
course of various testing facilities within an area of 2,834,000
m2 and approximately 360 persons work here. The company
plans to introduce state-of-the-art facilities in view of the future
to meet the changing times, such as for development of safeand environmental models.

Social issues solved and values created
Current performances and characteristics of the Indian business

Strength- Current annual production ability of 2 million units(Maruti Suzuki 1.5 million, SMG 0.5 million)- Suzuki contributes in investments for production while Maruti Suzuki also makes
efforts in investments for sales- Role as production hub of export vehicles- Meets domestic demands with high anticipationof further expansion- Cost reduction- Bridgehead to new markets incl. Africa- Approx. 2,600 sales outlets and 3,600 service bases- NEXA, ARENA, Commercial, and pre-owned channels- Reach out to customers in rural areas- Achieving and retaining customers

Development- Fulfilling model lineup- Development of safe and environmental models- Reinforcement of Rohtak R&D Centre- Swiftly feedback local needs to development- Early adoption to safety and environmental
laws and regulations- Efficient development within the Suzuki Group

Procurement- Grown along with our suppliers since starting business in India
Local procurement rate of over 95%- Management of quality and stable procurement- Cost reduction- Responsive to foreign exchange fluctuation

Production

Sales volume trend of passenger vehicles
Maruti Suzuki

Others

Share

Sales units
4,000,000

Share (%)
70.0%

3,500,000

60.0%

3,000,000

50.0%

Sales

2,500,000
40.0%
2,000,000
30.0%
1,500,000
20.0%

1,000,000

10.0%

500,000

0.0%

0
83

88

93

98

03

08

13

18

[Examples] Nurturing of human resources- Supports to ITIs
(Industrial Training Institutes)- Opening Japan-India Institute for
Manufacturing

Values created by the Indian business- Enhancement of customer satisfaction- Employment creation (plants, dealers, and suppliers)- Nurturing of human resources- Response to environmental issues- Promotion of traffic safety- Revenue growth of Maruti Suzuki[Examples] Promotion of traffic safety- Management of IDTR
(Institutes of Driving Training and Research)- Introduction of TSMS
(Traffic Safety Management System)- Automated Driving Test Centre

Passenger vehicle

Commercial
vehicleMini-based models

Market share of over 50%

It is said that if India would keep growing, the country’s
automobile market will reach 10 million units by 2030, and inorder for Suzuki to maintain the current market share of 50%,
we need to sell 5 million units annually. To realise this, we aremaking efforts in expanding sales and service channels,
expanding production ability, and reinforcing research anddevelopment.

20

ANNUAL REPORT 2019

ANNUAL REPORT 201921

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

GovernanceDirectors, Auditors and Officers

Directors, Auditors, and Officers

Corporate Governance(as of 1 November 2019)

Representative Directors

Audit & Supervisory Board Members

Representative Director and Chairman

Representative Director and Vice Chairman

Representative Director and President(Chairman of the Board of Directors)

Vice Chairman in charge of Special Missions

Executive General Manager, Motorcycle Company

Osamu Suzuki

Yasuhito Harayama

Toshihiro Suzuki

Audit & Supervisory Board Member

Audit & Supervisory Board Member

Toyokazu Sugimoto

Masato Kasai

Audit & Supervisory Board Member (Outside)

Audit & Supervisory Board Member (Outside)

Audit & Supervisory Board Member (Outside)

Norio Tanaka

Nobuyuki Araki

Norihisa Nagano

Directors

Director and Senior Technical Executive

Director and Managing Officer

Senior Technical Executive in charge of Special Missions,and Chief Officer, Inspection Reform Committee

Executive General Manager, Corporate Planning Office,and Committee, Inspection Reform Committee

Osamu Honda

Masahiko Nagao

Officers(as of 1 November 2019)

Executive Vice
President
Senior Managing
Officer

Director (Outside Director)

Masakazu Iguchi

Sakutaro Tanino

ResumeFeb. 1973	Professor of Faculty of Engineering, the Universityof TokyoApr. 1995	Professor emeritus of Faculty of Engineering, theUniversity of Tokyo
June 1995	Executive Vice President & Head of Japan
Automobile Research InstituteJune 2012 Outside Director of the Company (To the present)

22

ANNUAL REPORT 2019

ResumeApr. 1960 Joined Ministry of Foreign Affairs
Sept. 1995 Ambassador of Japan to India
Apr. 1998 Ambassador of Japan to China
Apr. 2001 Exited from the Ministry
June 2002 Vice Chairman of Japan-China Friendship Center
June 2012 Counselor of Japan-China Friendship Center (To the present)		Outside Director of the Company (To the present)

Ichizo Aoyama
Taisuke Toyoda

Executive General Manager, Audit

Managing Officer

Keiichi Asai

Executive General Manager, Inspection, and
Deputy Chief Officer,
Inspection Reform Committee

Managing Officer

Kazuki Yamaguchi

President, Suzuki Motor Sales Kinki Inc.

Managing Officer

Toshiaki Suzuki

Managing Officer

Kinji Saito

Managing Officer

Keiji Miyamoto

Managing Officer

Director (Outside Director)

Kenichi Ayukawa

Managing Director and CEO,
Maruti Suzuki India Ltd.
President, Automotive Electronics Power Private
Limited (India)

Managing Officer

Shinichi Imaizumi

Managing Officer

Naoki Suzuki

Managing Officer

Kazunobu HoriManaging Officer

Katsuhiro Kato

Executive General Manager,
Domestic Marketing I, Domestic Marketing
Executive General Manager,
Global Automobile Marketing
Executive General Manager,
Domestic Marketing II, Domestic Marketing
Deputy Executive General Manager,
Domestic Marketing

Managing Officer

Shigeo Yamagishi

Executive General Manager, Vehicle Regulations
and Engineering Administration, and Deputy
Chief Officer, Inspection Reform Committee

Managing Officer

Yasuharu Osawa

Division General Manager, Marine Operations

Managing Officer

Satoshi Uchida

Managing Officer

Shigetoshi Torii

Managing Officer

Masayuki Fujisaki

Managing Officer

Shinichi Akama

Branch Manager, Tokyo BranchManaging Officer

Yutaka Kikukawa

Executive General Manager, Legal/IP

Managing Officer

Masahiro Ikuma

Managing Officer

Hisanori Takashiba

Managing Officer

Masamichi Suzuki

Managing Officer

Hisashi Takeuchi

Managing Officer

Yukihiro Yamashita

Managing Officer, Connected Center
Executive General Manager,
Human Resources & General Affairs, andCommittee, Inspection Reform Committee
Executive General Manager,
Automobile Product & Cost PlanningManaging Officer in charge of Marketing andIndia, Motorcycle Company
Managing Officer in charge of Production
Engineering and Purchasing, and Deputy Chief
Officer, Inspection Reform Committee
Managing Officer in charge of Partnership
Promotion, Corporate Planning Office

Executive General Manager,
Automobile Engineering
Executive General Manager,
Research & Development
Deputy Executive General Manager,
Automobile Engineering
Deputy Executive General Manager,
Global Automobile Marketing
Deputy Executive General Manager,
Automobile Engineering

ANNUAL REPORT 201923

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

GovernanceCorporate GovernanceDirectors, Auditors, and Officers

Basic Policy on Corporate Governance

Development of Internal Control System

Through fair and efficient corporate activities, the Company
always intends to be trusted by all our stakeholders including
shareholders, customers, partner companies, local communities
and employees, and to be a continuously growing company,
while making a further contribution to the international
community. In order to realise that intention, the Company
considers that the enhancement of corporate governance is oneof the most important issues for proper corporate management
and is aggressively taking various kinds of measures.
In consideration of the meaning of the respective principles of

the Corporate Governance Code, the Company will makecontinuing efforts to ensure the rights and equality of theshareholders and the effectiveness of the Board of Directors andthe Audit & Supervisory Board as well as to upgrade the internal
control system. Also, in order to be trusted further by society andstakeholders, we will disclose information quickly in fair andaccurate manner prescribed in laws and regulations and actively
disclose information that we consider is beneficial to deepen
their understanding of the Company. Thus we will further
enhance the transparency of the Company.

The Board of Directors resolved the following basic policies regarding the systems to ensure the appropriateness of execution of duties(internal control systems).
1.	Systems to ensure that Directors’ and employees’ execution of
their duties complies with laws and regulations and the Articles
of Incorporation
2.	Systems relating to the storage and administration of theinformation in relation to Directors’ execution of their duties
3.	Rules and other systems relating to management of the risk ofloss
4. Systems to ensure efficient execution of duties by Directors
5.	Systems to ensure appropriateness of duties of the Corporate
Group consisting of the Company and subsidiaries

Overview of the Corporate Governance System
The Company has adopted the current system with the thoughtof traditional statutory auditor system being the foundation andestablishment of Advisory Committee on Personnel andRemuneration, etc. and appointment of highly independent

Outside Directors enables enhancement of governance.
Please refer to the Company’s “Corporate Governance Report”
for details of the Company’s Corporate Governance System.
https://www.globalsuzuki.com/ir/library/governance/pdf/report.pdf

Corporate Governance System

General Meeting of Shareholders
Elects/Dismisses

Elects/Dismisses
AuditsBoard of Directors

Reports Finds

Consults

Reports

Collaborates

Accounting Auditor

Secretariat
of Audit &Supervisory
Board

Instructs

Instructs

Audits accounts

Advisory Committee
on Personnel andRemuneration, etc.

Presents/Reports

Audit & Supervisory Board
5 Members

Elects/Dismisses(3 of which are Outside Audit &Supervisory Board Members)

7 Directors (2 of which are Outside Directors)

Reports

Audit
Division

Collaborates

Supervises

Corporate GovernanceCommittee

External
Attorneys

Executive Committee
Meetings Relating toBusiness Operations
and Management
Reports

Consults
Reports

Promotes
complianceand riskmanagement

AuditsAuditsRisk Management
Hotline(Internal reporting system)

Instructs

Headquarters / Group Companies

24

ANNUAL REPORT 2019

Corporate Governance

Audits accounts

6.	Matters for employees to support the business of the Audit &Supervisory Board Members when the Audit & Supervisory Board
Member seeks appointment of the employees; matters forindependence of such employees from the Directors; and mattersfor ensuring the efficiency of instructions given the employees
7.	Systems for reporting to the Audit & Supervisory Board Members
8.	Matters regarding procedures for prepayment or redemption of
expenses arising from the execution of duties of Audit &Supervisory Board Members and processing of other expenses
or liabilities arising from the execution of such duties
9.	Other System to ensure effecting auditing by the Audit &Supervisory Board Members

Internal Auditing and Company Auditor’s Audit[Company Auditor’s Audit]
The Audit & Supervisory Board of the Company is composed offive Company Auditors including three Outside Company
Auditors.
Each Company Auditor complies with the audit standards for
Company Auditors defined by the Board of Auditors, the audit
policy, the segregation of duties, etc., and conducts an audit for
the adequate management of the Company by attending theBoard of Directors and other important meetings such as
Management Meeting, inspecting documents including thosecirculated internally to obtain approval and the minutes of ameeting and receiving reports and comments about the businessstatus from Directors, employees, etc.
In addition, Company Auditors endeavour to strengthen thecooperation with an Accounting Auditor by exchanging opinions
and sharing information as required. For example, they receive aperiodic report on the matters such as audit plan, the results ofquarterly review and the implementation status of annual audit
from an Accounting Auditor, understand the status of audit
implementation through the attendance at an accounting audit,
etc., and receive a report on the audit quality control activities of
the audit corporation.
Moreover, Company Auditors confirm the audit plan and theme
proposed by the Audit Division and a report on business audit
made by the Division.
To assist the duties of Company Auditors, the Company
established the Secretariat of Audit & Supervisory Board, adepartment of dedicated staff members, which is independentof the chain of command and Directors.

Toyokazu Sugimoto, Company Auditor, has adequate knowledgeof finance and accounting due to his abundant businessexperience mainly in the accounting and finance areas of theGroup over many years. Norio Tanaka, Company Auditor, has
sufficient expertise in finance and accounting due to his
accumulated experience as a certified accountant[Internal Auditing]
The structure of the Audit Division, an independent internal
audit organisation, which reports directly to the President, wasreinforced to have about 60 members this June.
Experts of each area of corporate business are assigned to the
Audit Division to conduct a business audit of each department
and the domestic and foreign affiliated companies of theCompany based on audit plan. The business audit confirms
arrangement and operation status of internal control such as theadequacy and efficiency of overall company business, thecompliance with laws, regulations and internal rules and the
management and maintenance status of assets through onsite
audits and written survey. Based on the result, the Division
provides advice and guidance until the improvement is made.
The results of a business audit are periodically reported inconjunction with the proposed improvement plan for thefindings to the Board of Directors and the Board of Auditors forthe swift correction of the issues.
Moreover, as for the subsidiaries with internal audit department,
the activity status of the department is confirmed. In addition,
the audit plan and results are reported to obtain advice andguidance from the Company as required.

ANNUAL REPORT 201925

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

GovernanceCorporate GovernanceDirectors, Auditors, and Officers

Basic policies in the nomination of the senior management and the nomination of the candidates for
Directors and Company Auditors
The standard for nominating Directors includes that they musthave rich experience and knowledge in their respective fields,that they must be capable and qualified managers, and that theymust have a broad perspective required for global business
management.
For candidate Outside Directors, the Company looks for people
who have broad knowledge, experience and sufficientachievements in their field of origin, and who satisfy theCompany’s “Standard for Independence of Outside Directors andOutside Company Auditors” in order to strengthen their ability
to supervise management.
For candidate Company Auditors, the nomination standard
includes that the candidate must possess a high level ofknowledge and proficiency in auditing all fields of the Company’sbusiness, including auditing accounts.
For candidate Outside Company Auditors, the Company seeks forpeople who have a high level of specialist knowledge and richexperience in finance, accounting, technology, business
management, etc., and who satisfy the Company’s “Standard forIndependence of Outside Directors and Outside Company
Auditors” in order to secure the neutrality of the auditing system.
As a policy, the Company does not regard whether or not thecandidate is from within the Company, gender, nationality, etc.
when looking to candidate Directors and Company Auditors.
The suitability of candidate Directors and Company Auditors isdeliberated by the Advisory Committee on Personnel andRemuneration, etc., where Outside Directors/Auditors make up amajority of the membership, and based on the result of this
deliberation, and with the assent of the Board of Company
Auditors in the case of candidate Company Auditors, the Boardof Directors then decides on the candidates to propose forelection as an agenda item for a General Meeting of
Shareholders.
As for Managing Officers, Advisory Committee on Personnel andRemuneration, etc. deliberates suitability in compliance with thestandards for election of candidate Directors and based on the
results the Board of Directors elects Managing Officers.
In the event of violation of laws and regulations, etc. by a Director
or Managing Officer or of other cases where the needs ofdischarge or removal arises, the Board of Directors makes aresolution for discharge or removal (removal of a director is subject
to a resolution through an agenda of a general shareholders’meeting) based on the results of deliberations made by Advisory
Committee on Personnel and Remuneration, etc.

Committee

26

Name

Position

Age

Years in Service

Attribute

Masakazu Iguchi

Outside Director

84

7 years

Academic

17 times/
17 times

Sakutaro Tanino

Outside Director

83

7 yearsOther

17 times/
17 times

Norio Tanaka

Outside Company Auditor

68

7 years

CPA

17 times/
17 times

12 times/
12 times

Nobuyuki Araki

Outside Company Auditor

79

3 years

Academic

16 times/
17 times

12 times/
12 times

Norihisa Nagano

Outside Company Auditor

69

New Appointment

Lawyer--

ANNUAL REPORT 2019

Corporate
GovernanceCommittee

Attendance
Independent
Director/
Company
AuditorBoard ofDirectors

Reasons for Selecting as Outside Directors and Outside Company Auditors,
and Status of Major Activities
Name

Reasons for Selection

Major Activities

Masakazu Iguchi

Since his appointment as Outside Director in June 2012, he has beensupervising the management of the Company from a neutral position andgiving beneficial advice related to the management of the Company inthe manufacturing industry, based on his ample academic expertise as
doctor of engineering.
For the reasons stated above, the Company believes that he would be
able to carry out adequately the role of outside director.

Based on his ample academic expertise as doctor of engineering, he has
expressed his opinions which have beneficial effect to management of theCompany in the manufacturing industry.
He is also a member of “the Advisory Committee on Personnel andRemuneration, etc.”, which aims the improvement of transparency andobjectivity, etc., in election of candidates of Directors and decision of
remuneration.

Sakutaro Tanino

Since his appointment as Outside Director in June 2012, he has beensupervising the management of the Company from a neutral position andgiving beneficial advice related to the management of the Company fromglobal viewpoint, based on his ample experience and knowledge as
diplomat.
For the reasons stated above, the Company believes that he would be
able to carry out adequately the role of outside director.

Based on his ample experience and knowledge as diplomat, from theglobal perspective, he has expressed his opinions which have beneficial
effect to management of the Company.
He is also a member of “the Advisory Committee on Personnel andRemuneration, etc.”, which aims the improvement of transparency andobjectivity, etc., in election of candidates of Directors and decision of
remuneration.

Since his appointment as Outside Company Auditor in June 2012, he has
been performing his duties as Outside Company Auditor properly from aneutral position, based on his ample experience and expertise as a
Certified Public Accountant.
For the reasons stated above, the Company believes that he would be
able to carry out adequately the role of outside company auditor.

Based on his ample experience and knowledge as certified public
accountant, he has expressed his opinions which have beneficial effect in
the Board of Directors and the Audit & Supervisory Board.
He is also a member of “the Advisory Committee on Personnel andRemuneration, etc.”, which aims the improvement of transparency andobjectivity, etc. in election of candidates of Directors and decision of
remuneration.

Nobuyuki Araki

Since his appointment as Outside Company Auditor in June 2016, he has
been performing his duties as Outside Company Auditor properly from aneutral position, based on his ample experience and expertise as doctorof engineering and other important offices such as in the field of
academy/environment.
For the reasons stated above, the Company believes that he would be
able to carry out adequately the role of outside company auditor.

Based on his ample academic expertise as doctor of engineering, he has
expressed his opinions which have beneficial effect in the Board of
Directors and the Audit & Supervisory Board.

Norihisa Nagano

The Company believes that he would be able to carry out adequately therole of outside company auditor from an independent and neutral position
based on his ample experience and specialised knowledge as an attorneyat law.

Norio Tanaka-

Please refer to the Company’s “Corporate Governance Report” for the standard of independence of Outside Directors and Outside
Company Auditors.
https://www.globalsuzuki.com/ir/library/governance/pdf/report.pdf

Outside Directors and Outside Company Auditors (as of 27 June 2019)

Advisory
Committee on
Personnel andRemuneration,etc.

Corporate Governance

Audit &
Supervisory
Board

ANNUAL REPORT 201927

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

GovernanceCorporate GovernanceDirectors, Auditors, and Officers

Corporate Governance Enhancement

FY2016FY2017FY2018

Osamu Suzuki

23 times/23 times(100%)

19 times/19 times(100%)

17 times/17 times(100%)

Yasuhito Harayama

23 times/23 times(100%)

19 times/19 times(100%)

16 times/17 times(94%)

Toshiro Suzuki

23 times/23 times(100%)

19 times/19 times(100%)

17 times/17 times(100%)

Osamu Honda

23 times/23 times(100%)

15 times/15 times(since appointment from 29 June 2017)(100%)

16 times/17 times(94%)

Masahiko Nagao

23 times/23 times(100%)

19 times/19 times(100%)

17 times/17 times(100%)

Masakazu Iguchi

22 times/23 times(96%)

19 times/19 times(100%)

17 times/17 times(100%)

Sakutaro Tanino

23 times/23 times(100%)

19 times/19 times(100%)

17 times/17 times(100%)~FY2011ChairmanPresident

28

ANNUAL REPORT 2019

FY2012FY2013

FY2014FY2015FY2016FY2018

New Mid-Term Management Plan SUZUKI NEXT100(FY2015~FY2019)

Osamu Suzuki
Chairman and President
from 2008 to 2015

Toshihiro Suzuki

Term of board members shortened to 1 year from 2002

Supervision
Execution

Introduced executive officers system in 2006

Outside directors,
total directors

FY2017

Mid-Term Management Target(FY2010~FY2014)

Term

Appointed outside directors from 2012,
2 outside directors among 9 total

Supporting
div.
Seats

2 outside directors among 8 total
Corporate Governance Dept.
Secretariat of Audit & Supervisory Board

Not more than 30 from 1989

Reduced to 15
Advisory Committee on Personnel
and Remuneration, etc.

Committees

Corporate Governance Committee

VisionName

Board of Directors

Change in Attendance Rate of Board of Directors

Corporate GovernanceCorporatemissionCode ofconduct

Drafted "Mission Statement" in 1962
Drafted Suzuki Activity Charter,
Suzuki employees Activity Charter in 2003

Suzuki Group
Code of Conduct

ANNUAL REPORT 201929

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

GovernanceCorporate GovernanceDirectors, Auditors, and Officers

Advisory Committee on Personnel and Remuneration, etc.
Aimed to enhance clarity and objectivity upon electing candidates for
Directors and Auditors, as well as deciding remuneration of Directors, as
an advisory committee for the Board of Directors, the Company
establishes “Advisory Committee on Personnel and Remuneration, etc.”.
The majority of the Committee is Outside Company Directors.
The Committee discusses issues such as election standards andPolicy on Cross-Shareholdings

adequacy of candidates for Directors and Auditors, as well as adequacy
of system and level of Director’s remuneration. The Board of Directors
decides based on their results.
Decision for election and remuneration of Managing Officers are also
based on results of the Committee’s discussion.

Policy on determining the amount of remuneration, etc. for Directors/Audit & Supervisory Board Members[Remuneration of Directors]
Remuneration of Directors (excluding Outside Directors) consists of abasic remuneration for each position (a fixed amount), a bonus as ashort-term incentive remuneration linked to the Company’s performanceof each fiscal year, and a restricted stock remuneration as a mid- tolong-term incentive remuneration to serve as remuneration whichfunctions as an incentive for continuous growth of the Company.
Remuneration of Outside Directors is solely a basic remuneration (at the
fixed amount).
Also, remuneration of Directors will be decided by the Board of
Directors based on the deliberation results of “the Advisory Committee
on Personnel and Remuneration, etc.,” more than half of which is
Outside Directors/Outside Audit & Supervisory Board Members, on thepolicy regarding the decision of Director’s remuneration, standards,
remuneration system and adequacy of the remuneration level.
Basic remuneration and bonus will be paid within the range of theamount of remuneration limit (750 million yen or less per year (ofwhich 36 million yen or less per year is for Outside Directors)) approved
at a General Meeting of Shareholders, and the amount of

remuneration for each Director will be determined and paid in
consideration of the duties, responsibilities, etc. of each Director.
Bonuses will be paid based on a calculation method stipulated by theCompany, linked to progress indicators of consolidated results andother factors.
Restricted stock remuneration will be paid within the range of theamount of remuneration limit (300 million yen or less per year) andthe maximum number of stock (100 thousand stocks or less per year)
approved at a General Meeting of Shareholders with the aim offunctioning as an incentive for continuous increase of corporate value
and of increasing shared values between Directors and Shareholders.

[Remuneration of Audit & Supervisory Board Members]
Remuneration of Audit & Supervisory Board Members shall be solely
basic remuneration (at fixed amount), and the amount shall be decided
and paid in the discussion among Audit & Supervisory Board Members
within the range of the amount of remuneration limit (yearly amountwithin 120 million) approved at a General Meeting of Shareholders.

The Company will hold shares of business partners and others forrealising sustainable growth and enhancing our mid- and long-term
corporate value when we determine that such shareholdings willcontribute to creation of business opportunities, business alliances aswell as establishment, retention, reinforcement, etc. of stabletransactions and cooperative relations.
Appropriateness of individual cross-shareholdings is examined by the
Board of Directors every year. The Company makes a comprehensive
judgment on the accompanying benefits, risks, etc. of holdings taking
into consideration nature, scale, etc. of transactions and setting
qualitative criterion including aspect of enhancement of corporate
value and quantitative criterion including comparison with capital costs[Measures relating to compliance]-	The Company is integrating lessons on compliance without fail intraining for all levels such as for managerial position and the annual
training for employees after joining the Company. Training on laws,
regulations, etc. concerning safety and environment is provided forengineers to sufficiently understand laws, regulations, etc. withwhich they are required to comply in carrying out their work. Further,E-learning and other formats are being used to raise awarenesstoward compliance related to business activities.
	In addition to the above, with regard to the final vehicle inspection
operations, the Company is making efforts to raise normative
consciousness of the employees of the plant departments including
doing this by giving lectures from the Chairman and the President,

Amount of remuneration, etc. for Directors and Audit & Supervisory Board Members for the fiscal year
Total amount of
remuneration, etc.

Remuneration as the formof share acquisition

Number of Payees(Directors/Audit &Supervisory Board
Members)

Amount of each type of remuneration, etc.
Basic remuneration

Bonus

distributing the internal notification on compliance, and providing
training on the type designation system.
-	We regularly check laws and regulations in each domestic andoverseas subsidiary regarding their operation, observe eachcompany’s activity toward compliance of the laws and regulations
while we take necessary measures for such compliance. 

Directors (excluding Outside Directors)¥410 million¥240 million-¥170 million

6 people

As a lesson learned from the case regarding the improper

Outside Directors¥28 million¥28 million--

2 peoplemeasurement test of fuel consumption disclosed on May 18, 2016, we

Total¥439 million¥269 million-¥170 million

8 people

Audit & Supervisory Board Members(excluding Outside Audit & Supervisory
Board Members)¥56 million¥56 million-

Outside Audit & Supervisory Board
Members¥27 million

Total

2 people

set the day as “Remember 5.18” so that we do not let our
determination to not violate regulatory compliance fade away. Also,
we perform thorough checks focussing on the staff of the engineering,
manufacturing, and purchase departments to see whether they

¥27 million--

3 peoplecomply with laws and regulations by stopping operations for one day.
-	Education, training, and urging posters at all worksites are some

¥83 million¥83 million--

5 people

Notes: 1. The amount of remuneration for Directors (basic remuneration and bonus) has been resolved to be 750 million yen or less per year (of which 36 million yen or less per year is for Outside
Directors). In addition to this, the amount of remuneration for Directors not including Outside Directors for granting restricted stock has been resolved to be 300 million yen or less per year.
(Both: the 151st Ordinary General Meeting of Shareholders held on 29 June 2017)
2. The amount of remuneration for Audit & Supervisory Board Members has been resolved to be less than 120 million yen or less per year. (the 151st Ordinary General Meeting of Shareholders
held on 29 June 2017)
3. As described in “Policy on determining the amount of remuneration, etc. for Directors/Audit & Supervisory Board Members,“ based on a calculation method linked to the Company’s businessperformance for the fiscal year, ¥189.9 million had been recorded as “bonuses” for the above Directors (excluding outside Directors). However, since the improper conducts regarding the final
vehicle inspection operation was revealed, the Company decided not to pay Directors’ bonuses for the 153rd term.
4. The above-mentioned “bonus” and “remuneration as restricted stock” are amounts reported as expenses for the fiscal year.

methods being used to ensure awareness of the “Suzuki Group Risk
Management Hotline” in an effort to discover compliance issues
early and to respond appropriately.
-	The Corporate Governance Committee engages in enhancement ofcompliance awareness by employees and urges caution for individual
legal compliance throughout the Company. Furthermore, if complianceissues arise, the Committee conducts deliberation for each issue,
formulates required measures, and reports the details to the Board of30

Directors and the Audit & Supervisory Board Member as appropriate.
ANNUAL REPORT 2019for judgment and once a stock is decided to be sold, then thecompany shall advance reduction.
The Company will exercise the voting rights under cross-shareholdings
examining for each agenda from the viewpoint of conditions of theiroperation, contribution to raising our mid- and long-term corporate
value and whether subject agenda does not spoil stakeholders’ value
while respecting the management policy of the companies in which
we hold shares. As specially focussed agendas, the Company assumes
introduction of anti-takeover measure, business reorganisation,
agendas relating to appointment of directors in the cases ofcontinuously deteriorating business performance, etc.

Compliance System and Risk Management System

mainly the inspectors engaged in the final vehicle inspections. It is

Classification of Directors/
Audit & Supervisory Board Members

Corporate Governance

Urging posters (from left, 2018/2017/2016)[Measures relating to risk management]-	The Company has constructed a system in which issues occurring or
recognised in any department are deliberated on promptly by the
Corporate Governance Committee or the Executive Committee,
depending on their urgency and severity.
-	Since smooth communication of information within the Group iseffective for early discovery of problems, the top level of management
is directly supervising the thorough application of these basic rules of
information communication by all Directors, officers and employees:“Immediately give reports to your manager. Immediately contact yourmanager. Think for yourself, then consult;” and “Observe the actualsite or object to plan measures and take action.”-	In regard to risks of legal violations, the Company is continuously
identifying laws and regulations related to operations of theCompany, domestic subsidiaries, and overseas subsidiaries. In
addition to confirming the status of compliance, the Company isconstructing corrective measures as necessary.
-	Internal rules are constantly being developed in each department. The
Company is working to strengthen systems for efficient andappropriate operations in compliance with laws, regulations, etc. We
all have provided chances for ourselves to check each work procedureand make the necessary improvements regularly every year.
-	In accordance with the Company’s “CSR Guidelines for Suppliers” tocomply with laws and regulations, we are working with suppliers tofulfill our corporate responsibilities together, including those relating
to human rights, labour and the environment, with the principle ofsafety and quality first in our mind.
-	As part of measures to prepare for natural disasters, the Company
held two trainings for tsunami evacuation assuming the occurrenceof the Nankai Trough Megaquake. The Company also reviewed issue
in our Business Continuity Plan (BCP) and made necessary revisions.
ANNUAL REPORT 201931

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

CSR Policy

CSR Policy

Structure for promoting CSR

Human Resources

Business Partners

Main stakeholders

PolicyCustomers

For Customer Satisfaction
While keeping in step with the times and taking the opinions of the
public into full consideration, use our knowledge and skills to create
useful products of real value that satisfy the customer. Do our best to
provide quick, reliable, and stress-free sales and after-sales services inorder to enhance customer satisfaction.

- Marketing activity (sales and after-service)- Customer Relations Office- Customer events- Safety driving lectures, etc.

Business Partners

For Prosperous Coexistence
Cooperate with our business partners on even ground to maintainconfidential and prosperous relationships for manufacturing valuepacked products while practicing initiatives for compliance to laws andregulations, respect of human rights, and preservation of theenvironment.

- Presentation of procurement policy- Procurement activity- Co-development- Trading of opinions between the management or persons
in charge, etc.

Shareholders & Investors

For Improvement of Corporate Value
Disclose information promptly, appropriately, and fairly while seeking
communication with shareholders and investors, and strive to reinforce
management base and improve our corporate value.

- Annual General Meeting of Shareholders- Presentation for institutional investors- IR events for individual investors- Publication of various reports, etc.

Employees

For Comfortable and Worthwhile Workplaces
Create a workplace based on the following points that allows for
employee self-improvement and advancement.
1. Create a safe and healthy workplace for employees.
2. Create a system that fairly evaluates and supports those who want totake the initiative in advancing their careers.
3. Create a good and stable employer-employee relationship.

- Safety and health committee- Consultation desk
- Goal-challenging system- Self-actualisation system- In-house education and training program- Labour-management consultations, etc.

Local Community

For a Community-Friendly Company
Contribute to the development of social community through positive
communications with local communities and social action programs,
and act as a responsible member of society.

- Local contribution activities in each domestic and overseas
office- Educational support activity- Suzuki Plaza, etc.

Environment

For Global Environmental Conservation
We acknowledge that activities in environmental conservation are themost important part of business management. Environmental
conservation is promoted in accordance with our “Suzuki Global
Environment Charter” through our business activities and products inorder to achieve a society with sustainable development.

- Establishment, promotion, and reporting of Environment
Plan 2020- Opening of and participation into various environment
events- Environment education and lectures, etc.

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, Corporate Management/IR, and Corporate Governance) andenvironmental 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.

Extremely HighHigh

Significance for the Stakeholders- Enhancement of product quality(development, production, sales, and service)- Reduction of CO2 emissions- Development and popularisation of environmental technologies- Development and popularisation of safety technologies- Corporate governance and compliance- Stable growth of sales and income- Occupational health and safety- Traffic safety- Environmental conservation- Respect for human rights- Supply chain management- Effective use of resources (raw materials, energy, and water)- Diversity- Educational support- Contribution to the local communities- Enhancement of corporate value- Nurturing of human resources- Stable labour/management relations- Enforcement of risk management

High

Extremely High
Significance for the Suzuki Group

SDGs and CSR activities of the Suzuki Group
Sustainable Development Goals (SDGs), which were adopted by theUnited Nations in September 2015, aims to realise better internationalsociety by setting 17 goals in society, economy, and environment tobe worked on by 2030 and make efforts for their solutions. All
entities including corporations and all persons in all countries andregions 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.

ANNUAL REPORT 2019

Product Quality/Product Safety

Policy for Stakeholders

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 topromote viable CSR activities.

32

Environment

Ways of dialogue and communication

Third-party evaluation concerning CSR
Suzuki Motor Corporation was included in the FTSE4Good Index Series and the FTSE Blossom Japan Index, global indexes for ESG(Environment, Social, and Governance) investments, for the first time.
The Company will continuously be conscious of disclosing the efforts for ESG, and enhance communication with the stakeholders toconsistently promote sustainable enhancement of corporate value.
FTSE4Good Index Series
Created by FTSE Russell, a wholly owned subsidiary of
London Stock Exchange Group, the FTSE4Good IndexSeries is designed to measure the performance ofcompanies demonstrating strong ESG practices. The
FTSE4Good indexes are used by a wide variety of market
participants focussed on ESG investments to create andassess responsible investment funds and other products.
More information about FTSE4Good Index Series
https://www.ftserussell.com/products/indices/FTSE4Good

FTSE4GoodFTSE Blossom Japan Index
The FTSE Blossom Japan Index is an ESG index focussed onJapanese firms. The index is constructed so that industry
weights align with the Japanese equity market and uses
the globally established FTSE4Good Index Inclusion Rules FTSE Blossom
which are drawn from existing international standards
Japan
including the UN Sustainable Development Goals.
More information about FTSE Blossom Japan Index
https://www.ftserussell.com/products/indices/blossom-japan

ANNUAL REPORT 201933

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Environmental Initiatives

CSR Policy

Basic concept

Environment

Product Quality/Product Safety

Human Resources

Business Partners

Introduction of Electrification

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 nextgeneration vehicles, and acting in consideration of recycling. In manufacturing, our efforts include reducing global CO 2 emissions,
reducing energy requirements, and promoting the use of alternative energy sources. In distribution, we focus on improving theoperational 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 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

Others(Thousand units)

India

Ratio of hybrids in global sales

16.9%

Japan

561
14.3%
13.3%

462
27

Suzuki Environmental Plan 2020
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. New goals are 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 center of the Suzuki Group, in Japan and overseas, by 2020*2.
The details of the Suzuki Environmental Plan 2020 are available in the Suzuki CSR & Environmental Report. The report features ESG(Environment, Social, and Governance) initiatives and data receiving increased attention from stakeholders, including the environment,
human rights, labour, and compliance.
*1 Compared with FY2005. *2 Compared with FY2010.

Reduction in CO2 emissions due to automobile use

28%

Reduction in CO2 emissions from all production center of the Suzuki Group10%

Suzuki CSR & Environmental Reporthttps://www.globalsuzuki.com/corporate/environmental/report/

FY2015Global automobile
sales units

FY2016
Global automobile
sales units

FY2017
Global automobile
sales units

FY2018Global automobile
sales units

Of whichhybrids

Of whichhybrids

Of whichhybrids

Of whichhybrids

Japan

630

202

639

287

668

350

725

382

India

1,305

46

1,445

85

1,654

85

1,754

149

Others

926

1

835

17

902

27

848

29

Total

2,861

249

2,918

389

3,224

462

3,327

561

* Hybrids include Mild Hybrid, S-Ene Charge, and SHVS.
* Hybrids units in Others are units exported from Japan and India.

389
17

8.7%

29

149

85

85

249

1
46

350

382

287
202

2015

2016

2017

2018

(FY)

Lineup of models equipped with hybrid system
Mini:

WagonR/WagonR Stingray, Hustler, Spacia/Spacia Custom/Spacia Gear

Compact:

Solio/Solio Bandit, Swift, XBEE, Baleno, Ignis, Ciaz, Ertiga, SX4 S-CROSS* Depending on the market, there are models that are not equipped with hybrid system.

Control of global warming

Promotion of environmental conservation

We promote development of vehicles with the
top-class low fuel consumption and nextgeneration vehicles in order to reduce CO 2
emission, which is regarded as the cause for
global warming. In addition, for business
operations, we thoroughly conduct energysaving in production, distribution, sales, etc.
and promote efficient business operations.

For exhaust gas, substances of concern, etc.,
we not only make efforts for conformance tolaws, regulations, and industrial self-regulations
but also set target values stricter than theregulation to further reduce the said
substances.

Control ofglobal warming

Promotion ofenvironmental
conservation

We globally establish the environmental control
system and improve it continuously in order topromote actions concerning environment inbusiness operations in the entire Suzuki Group.
We, as a member of the society, develop thesociety harmonised with natural environment
by promoting environmental communications
with various stakeholders.

34

ANNUAL REPORT 2019

Reinforcement ofenvironmental
management

Promotion of 3Rs(Reduce, Reuse,
and Recycle)icDevelopment of next-generation vehicles

Suzuki
Environmental Plan
2020
Reinforcement of environmental management

T o pPromotion of 3Rs (Reduce, Reuse, and Recycle)
We promote business operations considering
3Rs when disposing of end-of-life vehicles(ELV), as well as in the development/design andproduction phases. We contribute to realisationof sustainable recycling-oriented society bycarefully using resources throughout theprocess.

Development of electric vehicles
Field test of 50 prototype electric vehicles started in India from October 2018. Testing ofthese vehicles will help to gather valuable insights as well as critical inputs based on
customer perspectives and create a reliable and suitable electric vehicle to delight Indiancustomers. We plan to feedback these data to the electric vehicle which is being developed
for launch at around 2020.

ANNUAL REPORT 201935

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Product Quality/Product Safety

CSR Policy

Efforts for Product Quality

Environment

Product Quality/Product Safety

Human Resources

Business Partners

E ff o r t s f o r s a f e t y

Suzuki Group is making efforts to give “the first priority to quality” as the most critical matter for “strengthening of manufacturing”.
We are aiming at becoming a trusted brand by giving top priority to the safety and security of our customers, developing andmanufacturing quality products that our customers can use with security, and quickly responding to feedback from our customers
during after-sales services.

Suzuki reinforces “efforts for safety technologies” and actively improves the safety so that every single person including pedestrian
and bicycle, motorcycle, and automobile drivers can live in a safe mobility society with each other.

Suzuki Safety Support

Efforts for traffic safety

Suzuki’s quality policy
In order to have our products used by our customers safely andsecurely, all departments involved in the entire process, including
product development and design, manufacturing at production
plants, sales to customers at markets, and the provision of aftersales services, are promoting actions cross-functionally to
improve the quality from the viewpoint of customers.

Suzuki’s quality policy
Develop products of superior value by focussing on the customer- Top priority to safety and security of our customers.

Suzuki Safety Support was born from our wish to have everyone
enjoy their cars safely.
In order to prevent accident and secure customer's safety in caseof an accident, we will make our utmost effort to minimise evennear-miss accidents through various
driving-support technologies.

- Quick response to customers’ feedback.

Suzuki Group not only makes efforts in technologies but also inawareness of traffic safety as well. For example, in overseas,
Maruti Suzuki India makes efforts in various projects in executionof traffic laws and awareness of traffic safety. Such projects
include Automated Driving Test Centres, introduction of traffic
safety management system, management of Institutes of Driving
Training and Research, and traffic safety education.

Suzuki Safety Support Technologies
Development quality

Manufacturing quality

Market quality

Establishment of trusted brand

Collision-mitigation braking
Dual Sensor Brake Support
Dual Camera Brake Support
Radar Brake Support II
Back-up Brake Support
False Start Prevention Function
Rear False Start Prevention Function
Lane Departure Prevention Function
Lane Departure Warning Function

Weaving Warning Function
Preceding Car Departure Announcing Function
High Beam Assist
Road Sign Recognition Function
Head-up display
Camera for all-direction monitor
Adaptive Cruise Control* As of September 2019. For specific model and variant equipped with these technologies, please refer to each model’s catalogue.

Quality management system

T o pSuzuki Group has adopted the international standard ISO9001 as its quality-management system. In addition to five plants in Japan,
major overseas plants in India, Thailand, Hungary, etc., have also adopted the ISO9001.
Pak Suzuki Motor Co., Ltd., a sales and manufacturing subsidiary in Pakistan, also acquired the certificate in FY2018. As a result, theratio of production at plants certified by ISO9001 against the entire global production of automobiles in the Suzuki Group in FY2018(3,394,000 vehicles) reached approximately 99%. We will promote the quality management in the entire Suzuki Group, and continue
to make efforts to realise quality improvement.

ic

The Solio and the XBEE achieved top rating in JNCAP safety performance evaluation

Solio

XBEE

1

The compact passenger car Solio and Solio Bandit* , which feature our preventive safety technology “Suzuki Safety
Support”, attained the top rating of ASV*2+++ (triple plus) in the FY2018 JNCAP*3 program of preventive safety

Acquisition of ISO9001
Country

Plant

Plant

Suzuki Motor Corporation: Kosai Plant

10

2

Osuka Plant

11

Sagara Plant

12

Iwata Plant

13

VietnamVietnam Suzuki Corp.

Hamamatsu Plant

3

Japan

4
5
6
7

India

8
9

36

Country

1

Pakistan

ANNUAL REPORT 2019

Indonesia
ThailandPT. Suzuki Indomobil Motor
Suzuki Motor (Thailand) Co., Ltd.
Thai Suzuki Motor Co., Ltd.

14

Hungary

Magyar Suzuki Corporation

Maruti Suzuki India Limited

15

Colombia

Suzuki Motor de Colombia S.A.

Suzuki Motor Gujarat Private Limited

16

Suzuki Motorcycle India Private Limited

17

China

Jinan Qingqi Suzuki Motorcycle Co., Ltd.
Changzhou Haojue Suzuki Motorcycle Co., Ltd

performance assessment.
Also, the compact passenger car XBEE*4 attained the top rating of the Five Star Award in the FY2018 JNCAP program ofcollision safety performance assessment.
Suzuki will introduce the preventive safety technology “Suzuki Safety Support” to various models to support safe and secure
driving for our customers, and going forward, Suzuki will continue to strengthen efforts for safety technologies to enhancesafety of cars.
*1 Car equipped with Suzuki Safety Support Package equipped with omni-directional monitoring camera package*2 ASV: Advanced Safety Vehicle*3 JNCAP: Japan New Car Assessment Program*4 Car equipped with Suzuki Safety Support Package

Pak Suzuki Motor Co., Ltd.

ANNUAL REPORT 201937

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Human Resources

CSR Policy

Human Resources

Environment

Product Quality/Product Safety

Human Resources

Business Partners

Secure and Comfortable Working Environment

Under the mission statement “Develop products of superior value by focussing on the customer”, Suzuki takes actions to accomplish themission that our every single employee thinks and acts by themselves and provides customers with products that will enrich their life.
We give the first priority to assurance of stable employment. Also, we try to improve work conditions in order to build healthy and abetter working environment. Employees mutually help each other and try to be a person who can contribute to the society with thespirit of “Team Suzuki”, and the management and employees band together and build a refreshing and innovative company.
In addition, we strive to create systems and environments, focussing on the following points, in order to cultivate the corporate
climate that employees go for a big future with motivation and ambition.
Create a safe and healthy workplace for our employees.
Create a system that fairly evaluates and supports human resources who try the higher goal.
Create good and stable relationships between the employer and employees.

Diversity (varieties of human resources)
Suzuki assigns a variety of human resources regardless of genders, ages and nationalities to any departments. In order to further
promote diversity of human resources, we determine promotions of official positions by considering individual performance,
capabilities, etc. regardless of genders. People from other countries are also employed according to the same recruitment standards
applicable to Japanese workers.
We will maintain and improve our working environment so that a wide variety of human resources can work actively.

Actions to promote participation by womenSuzuki established the action plan related to promotion of participation by women in order to realise the society where women candemonstrate their abilities and work successfully more. According to this action plan, we will increase hiring of women, reinforce
training, improve work environment and establish the support system including child-care leave.

Initiatives for shortening working hours
Efforts for safety, health and traffic safety
Suzuki is promoting the safety and health management activities through our basic safety concept.

Make Safety as first priority. (Safety First)
The basis of corporate activities is “human”.
The first priority must be always given to safety that protects “human”.

Basic Safety Concept

Employee relations

All accidents are preventable.
Managers must lead the workplace, having the strong belief “all labour accidents can be prevented”.

Safety is everyone's responsibility.
While the corporate conducts what they should do, every single person must take responsible actions to protect themselves.
Let’s make the climate where everyone follows the rules and mutually warns each other in the workplace.

Safety and health control system

Risk assessment activities

The “Central Safety and Health Committee” to which
representatives from offices and labour unions attend is held
twice a year to determine basic polices related to corporate“work safety”, “labour health” and “traffic safety”.
In addition, the Central Safety and Health Committee conducts
the central safety patrol once a year to raise safety awarenesswithin the company through crossfunctional safety activities byinter-department crosschecks. The Departmental Safety and
Health Committee is established at each office and constantly
conducts activities related to safety and health based on thepolicy of the Central Safety and Health Committee.

Suzuki implements “risk assessment” mainly for prevention ofrisks as safety prefetch activities. Through these activities, we try
to improve safety by identifying potential risks in operations andpromoting countermeasures to prevent them. We haveintroduced risk assessment for the close call cases in 2001 andhave been working on risk assessment in regular operations
since 2013.
Same initiatives for safety and health control as well as risk
assessment are also conducted in overseas.

1.20

1.06

1.20

1.15
1.02

1.00
0.80
0.60

0.51

0.40
0.20
0

0.03
2014

38

ANNUAL REPORT 2019

0.41
0.09

0.39
0.15

0.43
0.21

Employee communication
We arrange frequent labour-management consultations to ensure that employee ideas are reflected in all of our departments, such as
research and development, design, manufacturing, sales, etc.
In addition to discussing requirements (salaries, bonuses, labour hours, etc.) we hold monthly discussions that regularly cover a wide
range of issues such as management policies, production planning,
Frequency
working hours, welfare, safety and health, etc., and earnestly exchange
Central Labour-Management Consultation
Monthlyideas on what Suzuki and the labour union can do to deliver quality
District Labour-Management Consultation
Monthly
products to the customer.

Building a stable relationship with the labour union in the Suzuki Group

Average of manufacturing industry
Average of transportation equipment manufacturing industry
Suzuki
1.06

Through mutual confidence, we have developed a good relationship with the Suzuki Labour Union, which represents Suzuki
Employees. Among the labour union’s goals are stable employment and maintaining and improvement of work conditions. In order tomeet these conditions, stable development of the company is required. When negotiating salaries, bonuses, labour hours, etc. as
distributions of the results of corporate activities, we do share the same basic vector, which aims to stable development of thecompany while having discussions from different standpoints: the company and labour union.
The number of the labour union members is 16,225 as of the end of FY2018, and the unionisation rate of full-time employees(excluding managers and non-union members defined in the labour agreement) is 100%.

The Suzuki Group has 130 member companies (manufacturers, non-manufacturers, sales companies) at home and abroad. It is ourhope that those 130 member companies are individually trusted by the local residents, society, and customers.
At Suzuki, seminars are given to union officials and human resource management personnel of overseas companies to make themunderstand the importance of cooperative relationship and smooth communication between labour and management, as well as theneed for a fair and equal personnel management system, etc. We also work with the labour union to promote global personnel
exchanges both domestically and abroad, and we strive to establish a work climate which allows our 67,000 employees in 130
companies to enjoy working with a highly creative and stable labourmanagement relationship.

Trends in accident frequency rate
1.40

Initiatives are made to shorten working hours by introducing various systems so not to have our employees to become ill due to long
working hours.
• Strict management of overtime working hours based on total working hours• Introduction of flexible time system that bans early and late working hours• Introduction of interval system between working hours to secure continuous resting time

0.54
0.26
Safety education at overseas plant

2015

2016

2017

2018 (FY)ANNUAL REPORT 201939

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Human Resources

CSR Policy

Initiatives by Maruti Suzuki India Limited

Environment

Product Quality/Product Safety

Human Resources

Business Partners

Rotation system

For the development of the company through labour-management cooperation, Maruti Suzuki is working to establish healthy labourmanagement relationship based on discussions with the union. The company is making efforts in continuously strengthening mutual
labour-management communication, such as by periodically holding meetings between the union and the president, plant managers,
human resource managers, and other managers. Also, the company organises various events jointly with unions such as arrangementof plant tour for family members, sports meet, family day and many other events where all employees take part.
There are independent unions in each plant as per statutory requirements. All major policy changes affecting workers are discussedwith union representatives. Such changes are communicated to all the workers directly and through union representatives.
Frequency
Managing Director Communication with Department Heads

QuarterlyManaging Director Communication with Union

Monthly

Senior Management (Production and Human Resources)
Communication with Associates, Supervisors and Workers

Monthly

Human Resources Managers and Plant Managers Communication with Union

WeeklySuzuki implements systematic rotations of human resources by preparing the companywide personnel change plan in order to improve
employees’ knowledge and technical skills and activate our organisations. The goal we set in this system is to have all young employeesof technical jobs, office jobs and sales jobs experience the transfer to different department(s) within 10 years after entering the company.

International training program
We have been implementing “6-month overseas training business trip expatriate” that send young employees to overseas affiliates
since FY2015 in order to develop global human resources.
(FY2015~2018 total 27 persons…FY2015-6 persons, FY2016-6 persons, FY2017-5 persons, FY2018-10 persons)Foreign language training program

Labour-management meeting

Plant tour for family members

In order to improve language skills of employees, we have introduced the system to allow young employees up to 7th year at thecompany to set the target score of TOEIC and to take a TOEIC test for free (examination fees are paid by the company).
In addition, we support improvement in language skills by introducing correspondence courses provided by external educationalorganisations, as well as opening in-house language seminars of English, Spanish, Chinese, Thai, Indonesian, etc. before and afterwork hours by inviting external teachers to the company. Suzuki provides employees who have completed such programs with asubsidy for a part of the expenses. 878 employees took the program in FY2018.

Efforts for career advancement
Suzuki feels that setting high goals is an excellent way to grow one’s self and that such trial itself is the DNA of Suzuki. In order to copewith rapid changes in the market environment, every single employee must set higher goals and strive to acquire higher technicalcapabilities. Suzuki implements the rich human resource development program that supports such individual challenging spirit.

Goal Challenge System
Suzuki feels that it is an excellent way to improve one’s self that not simply waiting for instructions from the supervisor but voluntarily
setting and striving for the goal in terms of accomplishment of the work. Our Goal Challenge System is introduced to allow
employees to set and achieve higher goals. In this system, employees confer with their supervisors every half period and set specificgoals to be achieved over the course of six months. Through this process, employees can clarify their own goals and improve
motivation toward them. In addition, their supervisors can appropriately evaluate their goal attainment levels and recognise thetraining points required to further improve their capabilities.
Suzuki’s personnel system places greater emphasis on occupational ability than seniority. Intended to develop professional humanresources who will lead Suzuki’s further growth, it is based on an objective and fair personnel evaluation system according to types ofwork, roles, responsibilities and results of individual employees. The performance-based personnel system and the goal setting system
motivate employees’ intentions to step up each rung of the corporate ladder.

Self-assessment System
This system is to grant employees opportunities to review their work and capabilities once a year, reconfirm their own strength andweakness, and lead them to further improvement in capabilities. In addition, they can clarify jobs and departments that they want totry as the career plan, and submit it to their supervisors and the Human Resources Department. The submitted contents are effectively
utilised as the basic data for development and optimal assignment of human resources.

40

ANNUAL REPORT 2019In-house education system
At Suzuki, enterprise education including seminars according to management hierarchy are conducted based on the policy of our
mission statement by the Training Center (Suzuki Juku), a group in charge of education. Training Center also cooperates withengineering and manufacturing departments to conduct (specialised) training for individual occupational abilities needed forexecution of operation.
Also, active efforts are made to enhance employee performances by educating specific knowledge and skills in each department tonurture human resources, as well as through e-learning, correspondence course, and language seminars.
Especially in seminars according to management hierarchy, main focus is emphasising education for “enhancing abilities of young
employees”, “developing leaders in each management hierarchy”, and “systematically developing management class”.
1. Training for enhancing abilities of young employees- Trainings according to the year of joining the company are conducted every year
for young employees from 2nd to 7th year employees.
2. Selected trainings for systematically developing management class• Training for young assistant managers- “ Assistant manager leader training”, which lets the participants discuss on
management challenge and make presentation to the management top- “Global leader training”, which is focussed on English communication• Selected training for managers- “ Core management training”, which educates subjects needed for the
management such as “leadership” and “organisation management”.

Number of training participants (Suzuki Group)2016

52,8002017

59,5002018

60,500ANNUAL REPORT 201941

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Business Partners

CSR Policy

Suzuki intends to make a social contribution under the first paragraph of the mission statement: “Develop products of superior value
by focussing on the customer”. In creating such valuable products, we believe that the procurement section’s role is to work in mutual
cooperation with our business partners so that both parties may prosper. Those business partners are selected through an impartial
procedure based on quality, cost, deadline delivery, technical development capabilities, risk management, and past track record. And
we have an open door policy, which offers the chance of teaming up with Suzuki regardless of size, track record, or countries/regions.

Sustainable relationships
In creating trusting relationships with our business partners we aim toestablish sustainable relationships. For that purpose, we regard the mutualcommunications as the most important factor, and are making efforts inmutual understanding by holding Procurement Policy Presentation once a year
to our business partners to share Suzuki’s policy and product/production plans
as well as to inform our procurement policy based on those plans.
Procurement policy presentation (March 2019)
Also, we are sharing ideas not only between the top and middle
managements, but also between managements and individuals responsiblefor daily business operations.

Global procurement

Business Partners

Stakeholders including business partners of Suzuki are getting multinationalised and diversified as ourbusiness activities are developed globally. So, we are expected to fulfill social responsibilities with due
considerations to other cultures and histories, as well as to follow legal and social norms of various countries.
Based on such social requests, we compiled basic concept and practices of social responsibilities that weshould accomplish with our business partners as “Suzuki CSR Guidelines for Suppliers”. We are reqesting ourpartners to comply to the guidelines upon making procurement throughout the Suzuki Group.
We kindly request our business partners to understand the purpose and cooperate with us to promote CSR
activities together.
https://www.globalsuzuki.com/corporate/environmental/green_policy/pdf/SUZUKICSRGuidelinesforSuppliers.pdf(Initiatives to maintain workable guideline)• Efforts are made in understanding the environmental conservation initiatives of our business partners by conducting research on
greenhouse gas emissions and water usage amount once a year.
• Aimed to prevent one-sided cost reduction request and delay in payment to our suppliers throughout the whole supply chain, weare holding case-by-case presentation to widely notify about proper trading.
• Quality audit are held periodically (frequency based on rank in quality) under the Supplier Quality Assurance Manual that compiles
Suzuki’s basic policy, activities, and requests for quality assurance.

1.Safety / Quality• Providing products and services that meet customers’ needs• Sharing appropriate information about products and services• Ensuring safety of products and services• Ensuring quality of products and service

3.Environment• Implementing environmental management• Reducing greenhouse gas emissions• Preventing air, water, and soil pollution• Saving resources and reducing wastes• Managing chemical substances

2.Human Rights / Labor• Eliminating discrimination• Respecting human rights• Prohibiting child labor• Prohibiting forced labor• Not using conflict minerals causing human rights infringement• Wages• Working hours• Dialogue with employees• Safe and healthy working environment

4.Compliance• Compliance with laws
• Compliance with competition laws
• Preventing corruption• Refusing relations with antisocial forces• Managing and protecting confidential information• Managing export trading• Protecting intellectual property

Business Continuity Plan
In addition to earthquake-proof reinforcing of individual office buildings, we have started compilation of a business continuity plan
(BCP). We regard the preparation for earthquakes, tsunami and other wide-scale disasters as part of our responsibility to local
community, business partners, and customers. We recommend disaster measures such as quakeproofing to our partners located inareas that are likely to experience heavy damage. We are also prepared to aid our business partners in their recovery if they should fallvictim to such disaster.

Efforts for compliance with laws and regulations, respect for human rights and environmental conservation
Suzuki is complying with laws and regulations of each country and region (for example, compliance with “Act against Delay inPayment of Subcontract Proceeds, Etc. to Subcontractors” and business operations according to the five principles for procurement in“Automotive Industry Appropriate Transaction Guidelines” in Japan), respect for human rights and environmental conservation. Also
we establish Suzuki CSR Guidelines for Suppliers and request our business partners to practice efforts for compliance with laws andregulations, respect for human rights and environmental conservation.

Basic policy regarding human rights

ANNUAL REPORT 2019

Human Resources

CSR Guidelines for Suppliers (excerpt)

We will accelerate global procurement activities by working with worldwide manufacturing bases. Previously, procurement activities
were carried out mainly on individual local bases, but we have shifted to a more global-basis approach to obtain the most suitableparts at competitive prices. That benefits not only Suzuki, but also our business partners who can stably receive orders andaccumulate various technologies. By sharing those merits we can build more confident relationships.

42

Product Quality/Product Safety

Suzuki CSR guidelines for our business partners

With Our Business Partners

As stated in the“Suzuki Group Code of Conduct”, we believethat respect for human rights is the base for all corporate
activities and thorough efforts are made even in the CSR
activities. The Suzuki Group has no intention of taking part inany action that would lead to infringement of human rights.
We will promote respect of human rights with our business partners.

Environment

5.Information Disclosure• Information disclosure to Stakeholders

Prohibiting all types of harassments

Initiatives
concerning
human rights

S afe and healthy working environment,
and good employee relations
Eliminating discrimination in employment
Prohibiting child labour and forced labour

Suzuki Green Procurement Guideline
Please refer to the following URL for our initiatives for promotion of green procurement.
*Green procurement guideline https://www.globalsuzuki.com/corporate/environmental/green_policy/pdf/suzukiGreenGuideline.pdf

Not using conflict minerals causing human rights infringement

ANNUAL REPORT 201943

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Data Section

11-Year Financial/Non-Financial Data
Unit
Production unit
Domestic production
Overseas production

Thousand units

Of which India
Automobile Sales unit
Domestic production
Overseas production

Thousand units

Of which India
Sales unit of hybrid models

Thousand units

Production unit
Domestic production Thousand units
Motorcycle

Overseas production
Sales unit
Domestic production Thousand units
Overseas production

Unit
Net sales

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018

2,494

2,545

2,878

2,803

2,878

2,857

3,043

2,951

3,074

3,338

3,394

Number of employees

959

994

1,020

1,044

998

1,055

861

871

971

1,011

Male

1,355

1,586

1,884

1,782

1,834

1,859

1,988

2,090

2,203

2,367

2,383

Female

1,028

1,273

1,134

1,169

1,153

1,308

1,424

1,585

1,781

1,850

2,350

2,643

2,560

2,661

2,709

2,867

2,861

2,918

3,224

3,327

Male

665

622

588

596

672

728

756

630

639

668

725

Female

1,641

1,729

2,055

1,964

1,989

1,981

2,111

2,231

2,279

2,556

2,602

722

871

1,133

1,006

1,051

1,054

1,171

1,305

1,445

1,654

1,754

–

–

–

–

–

–

55

249

389

462

561

3,305

2,904

2,735

2,574

2,269

2,033

1,799

1,480

1,370

1,627

1,747

185

174

169

180

154

122

141

152

115

Male

2,550

2,400

2,100

1,852

1,645

1,358

1,229

1,475

1,632

Female

3,350

3,019

2,695

2,589

2,312

2,022

1,764

1,501

1,367

1,580

1,743

128

78

79

78

76

74

67

61

62

60

57

3,222

2,941

2,616

2,511

2,236

1,948

1,697

1,440

1,305

1,516

1,686

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY20182,512.2

2,578.3

2,938.3

3,015.5

3,180.7

3,169.5

3,757.2

3,871.5

2,302.0

2,209.0

2,297.8

2,615.7

2,702.0

2,878.5

2,895.6

3,435.8

3,532.5

Motorcycle

454.3

262.9

257.7

254.8

230.3

266.6

250.5

233.9

206.3

246.4

255.1

Marine, etc.

66.6

45.4

48.5

48.4

50.2

56.0

63.0

68.3

67.6

75.0

83.9

965.5

952.6

937.4

986.8

1,040.9

1,132.7

1,094.6

1,047.9

1,037.5

1,116.7

1,252.4

2,039.3

1,516.5

1,670.8

1,525.4

1,537.4

1,805.6

1,920.8

2,132.8

2,132.0

2,640.5

2,619.1

Europe

737.7

451.1

395.1

350.9

286.5

398.9

372.0

404.7

425.3

510.6

524.8

North America

234.8

131.8

99.0

105.3

95.6

65.1

66.0

67.0

56.1

62.5

70.8

Asia

791.8

771.7

973.0

886.3

985.4

1,112.0

1,214.5

1,394.7

1,393.0

1,773.2

1,762.3

Others

274.8

161.8

203.5

182.9

169.9

229.7

268.3

266.3

257.6

294.2

261.2

Operating income

76.9

79.4

106.9

119.3

144.6

187.7

179.4

195.3

266.7

374.2

324.4

79.7

93.8

122.5

130.6

155.6

197.8

194.3

209.1

286.7

382.8

379.5

27.4

28.9

45.2

53.9

80.4

107.5

96.9

116.7

160.0

215.7

178.8

216.2

120.2

130.3

126.7

169.3

213.6

194.5

171.5

198.8

213.4

268.9

141.2

141.8

138.4

103.1

93.7

117.2

134.4

168.3

163.4

150.9

148.9

R&D expenses

115.0

108.8

104.1

109.8

119.3

127.1

125.9

131.0

131.5

139.4

158.1

Interest-bearing debt

681.3

547.0

484.6

439.8

427.5

445.3

554.7

529.3

639.9

577.9

375.4

2,157.8

2,381.3

2,224.3

2,302.4

2,487.6

2,874.1

3,252.8

2,702.0

3,116.0

3,340.8

3,402.0742.9

1,089.8

1,107.0

1,111.8

1,298.6

1,494.4

1,701.4

1,187.7

1,387.0

1,595.2

1,715.9

Ordinary income

Billion yen

Net income
Capital expenditures
Depreciation expenses

Total assets

Billion yen

Billion yen

Net assets
Shareholders' equity ratio
Net income per share, Basic
Cash dividends per share (annual)
ROE

ANNUAL REPORT 2019

%
Yen
%

Female162

2,608.2

29.6

40

43.6

42.9

46.1

46.2

45.6

35.4

35.9

38.8

40.9

61.68

62.76

80.65

96.06

143.31

191.6

172.67234.98362.54488.86395.26

16

12

13

15

18

24

27

32

44

74

74

3.9

3.6

4.7

5.5

7.5

8.7

6.9

9.6

15.4

17.9

13.3

Person

Of which college graduates

2,743

2,160.8

Billion yen

Male

312

2,469.1

PersonNew employment

2,993

2,483.9

Person

Of which managers

774
2,305

3,004.8

Overseas sales

Unit

1,139

Automobile

Domestic sales

44

11-Year Financial/Non-Financial Data

Turnover rate
Number of employees (consolidated)

Person%PersonFinancial Review

Consolidated Financial Statement

Company Information/Stock Information

FY2008FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY201814,266

14,504

14,532

14,38914,405

14,571

14,751

14,932

15,13815,26915,431

13,074

13,222

13,26913,147

13,14013,26013,347

13,467

13,603

13,71113,808

1,192

1,282

1,263

1,242

1,265

1,311

1,404

1,465

1,535

1,558

1,623

–

–

–

–

–

–

926

965

1,014

1,049

1,080

–

–

–

–

–

–

921

957

1,004

1,037

1,066

–

–

–

–

–

–

5

8

10

12

14

1,142

1,037

249

306

427

588

571

635

794

642

563

988

879

232

268

364

496

496

532

674

541

445

154

158

17

38

63

92

75

103

120

101

118

660

625

230

280

367

446

462

472

585

456

475

605

573

214

247

328

404

425

412

523

396

396

55

52

16

33

39

42

37

60

62

60

79

–

–

–

–

–

–

4.3

4.1

3.8

4.2

3.9

50,61351,50352,731

54,48455,94857,74957,40961,601

62,992

65,17967,721

ANNUAL REPORT 201945

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Data Section

Financial Review

11-Year Financial/Non-Financial Data

Business Segments and Scope of Consolidation
The corporate group of the Company consists of subsidiaries of
132 companies and affiliates of 31. The main businesses are
manufacturing and marketing of automobiles, motorcycles,
outboard motors, motorised wheelchairs, electro senior vehicles
and houses, further developing the businesses of logistics andother services related to the respective operations.

[Significant notes that are fundamental in making theconsolidated financial statement]
1. Note regarding scope of consolidation... Consolidated subsidiaries 130 companies
2. Note regarding scope of equity method... Affiliates accounted for using equity method 28 companies

Segment

Under these circumstances, the consolidated net sales for
FY2018 increased by ¥114.3 billion (3.0%) to ¥3,871.5 billion
year-on-year. The operating income decreased by ¥49.8 billion(13.3%) to ¥324.4 billion year-on-year mainly owing to theimpact of depreciation of currencies of emerging countries
including the Indian Rupee and the increase in various expenses.
The ordinary income decreased by ¥3.3 billion (0.9%) to ¥379.5
billion year-on-year. Decrease in ordinary income was kept at thislevel partly owing to increase in interest income andimprovement in equity in earnings/losses of affiliates. The net
income attributable to owners of the parent decreased by ¥36.9
billion (17.1%) to ¥178.8 billion year-on-year mainly owing toaccounting extraordinary loss of ¥81.3 billion for conducting
recall campaign in Japan.

[Motorcycle Business]
The net sales increased by ¥8.7 billion (3.5%) to ¥255.1 billion
year-on-year mainly owing to the increase in sales in India,
Indonesia, and the Philippines. The operating income decreasedby ¥1.0 billion (21.2%) to ¥3.6 billion year-on-year mainly owing
to the decrease in sales of large displacement models in Europe.
[Marine Business, etc.]
The net sales increased by ¥8.9 billion (11.8%) to ¥83.9 billion
year-on-year, and the operating income increased by ¥2.5 billion(16.9%) to ¥17.0 billion year-on-year mainly owing to the sales
contribution of large outboard motor DF350A in North America.

R&D Expenses
R&D expenses of the Group for FY2018 were ¥158.1 billion, and their breakdown by segment is as per below.

46

R&D Expenses

Automobile business¥137.8 billion

Motorcycle business¥17.2 billion

Marine business, etc.

¥3.1 billion

Total¥158.1 billion

ANNUAL REPORT 2019

R&D Expenses

Automobile business¥245,597 million

Motorcycle business
Marine business, etc.
Total

Operating results by business segmentation

Segment

Company Information/Stock Information

Capital expenditures for FY2018 were ¥268,945 million, which were used for production, R&D, and marketing facilities.
Breakdown by segment is as per below.

Note[Automobile Business]
The overseas automobile net sales decreased year-on-year mainly
owing to the impact of depreciation of currencies of emerging
countries. However, the net sales of the automobile businessincreased by ¥96.7 billion (2.8%) to ¥3,532.5 billion year-onyear by covering the decrease in the overseas automobile net
sales with the increase in the Japanese domestic automobile net
sales, which increased year-on-year mainly owing to the sales
contribution of Spacia and XBEE. The operating income
decreased by ¥51.3 billion (14.4%) to ¥303.8 billion year-onyear mainly owing to the impact of increase in various expenses,
in addition to depreciation of currencies of emerging countries.

Consolidated Financial Statement

Capital Expenditures

Management results of FY2018
With respect to the management environment of the Group for
FY2018, according to the raise of interest rates in the US, theeconomy of emerging countries slowed down owing to thedepreciation of currencies and the raise of interest rates.
Moreover, the world economy is becoming more unclear owing
to the trade conflict between the US and China and the problem
of Brexit. The Indian macro environment was improved owing to
the reduction of interest rates and the currency stability. In Japan,
the economy is recovering moderately owing to the government
policies, but it is necessary to keep a close watch on the situationof the world economy as a whole. Furthermore, as awareness ofenvironmental issue by the overall society is increasing,environmentally conscious management and regulatorycompliance in various countries are becoming more and moresignificant for the Group.

Financial Review

Facilities

Financing

Production, R&D, and marketing facilities, etc. of automobiles

Self-financing and outside financing¥19,405 million

Production, R&D, and marketing facilities, etc. of motorcycles

Same as above¥3,942 million

Production, R&D, and marketing facilities, etc. of outboard motors

Same as above¥268,945 million

1. The above amounts do not include consumption tax, etc.
2. Capital expenditure amount is a total of the Company and its subsidiaries.
3. Investment in each segment are as per below.
In the automobile business, the Company made capital expenditure of ¥42,990 million, which includes expansion of production ability and production facilities for new models. Maruti
Suzuki India Ltd. also made capital expenditure of ¥72,946 million, which includes expansion of production ability, production facilities for new models, and maintenance andexpansion of sales networks. Suzuki Motor Gujarat Private Ltd. made capital expenditure of ¥64,299 million, which includes expansion of production ability.
In the motorcycle business, the Company made capital expenditure of ¥12,701 million, which includes expansion of production ability.

Liquidity and Source of Funds[Financial Position]
Purchase of convertible bond with stock acquisition rights of ¥200
billion issued in April 2016, which was to be used for growthinvestments such as in India, proceeded due to hike in stock pricein August 2018. Consequently, at the end of FY2018, they
decreased to ¥11.5 billion, and total liabilities decreased by ¥59.5
billion to ¥1,686.1 billion from the end of previous fiscal year.
On the other hand, net assets increased by ¥120.7 billion to¥1,715.9 billion from the end of previous fiscal year mainly
owing to increase in shareholders’ equity due to accounting
retained earnings. As a result, total assets increased by ¥61.2
billion to ¥3,402.0 billion from the end of previous fiscal year,
finally recovering the shareholders’ equity ratio to 40.9%, which
had been breaking below the 40% line since the acquisition oftreasury shares of ¥460.3 billion in September 2015.
However, capital expenditures in FY2018 were record-high of¥268.9 billion, and the Company continues to plan a high levelof capital expenditures of ¥270.0 billion for the next fiscal year.

In order to enable these capital expenditures, smooth financing
and improvement of shareholders’ equity are significant mattersfor the Company.
[Capital Resources, Liquidity of Funds, and Cash Flows]
Cash flow provided by operating activities for FY2018 amounted
to ¥383.4 billion (¥445.2 billion was provided in the previous
fiscal year), and ¥250.8 billion was used for investment inenhancement of ability in India, investments in new models in
production sites, and others (¥341.6 billion was used in theprevious fiscal year). As a result, free cash flow amounted to¥132.6 billion of positive (¥103.6 billion of positive for theprevious fiscal year). In financing activities, ¥256.1 billion wasused by purchase of convertible bond with stock acquisitionrights etc. (¥113.9 billion was used in the same period of theprevious fiscal year).
As a result, the balance of cash and cash equivalents at the endof FY2018 was ¥473.1 billion, which decreased by ¥127.7 billion
from the end of the previous consolidated fiscal year.

Basic Policy on Profit Distribution and Dividends
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.
Regarding consolidated results for the fiscal year, profit decreased
significantly compared with the previous fiscal year due to an
extraordinary loss caused by the recall campaign. Since theCompany views shareholder returns as one of the key
management issues and considering stable dividends, theCompany made ¥74.00 per share as the annual dividend of the
fiscal year, which is the same amount as in the previous fiscal
year, and ¥37.00 per share as the year-end dividend.
As for the usage of internal reserves, the Company plans to usethem for various investments such as implementation of preventive

measures for improper conducts in final inspection, investment for
further enhancement of quality and safety, investment into growing
market including India, dealing global environmental concerns, andR&D for making valuable products such as safety technologies andinformation and communication technologies.
In line with our basic policy, the surplus is distributed twice ayear in the forms of the interim dividend and the year-end
dividend. According to the resolution of our Board of Directors,
the interim dividend is available for the shareholders as of 30
September every year as the record date, which is stipulated inour company contract. The decision-making meetings for thedividends are the Board of Directors for the interim dividend, andthe shareholder meeting for the year-end dividend.
ANNUAL REPORT 201947

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Data Section

Consolidated Financial Statement

11-Year Financial/Non-Financial Data

Financial Review

Consolidated Financial Statement

Company Information/Stock Information

Consolidated Balance Sheets(Amount: Millions of yen)

FY2017(As of 31 March 2018)(Amount: Millions of yen)

FY2018(As of 31 March 2019)

Assets

FY2018(As of 31 March 2019)

Liabilities

Current assets

Current liabilities		

Cash and deposits

690,418

509,717

		Accounts payable-trade443,916

327,373		Notes and accounts receivables-trade388,973445,700		Electronically recorded obligations

68,322

71,532

		

Short-term investment securities

256,695

189,046		

Short-term loans payable

97,59893,807

		

Merchandise and finished goods

253,999

238,013		Current portion of long term loans payable

93,157

63,845		Work in process

48,95454,033

		Accrued expenses

215,335

297,200

		Raw materials and supplies

49,96259,850		

Income taxes payable

40,59834,661

135,237

131,075

		Provision for product warranties

105,106

248,199(5,252)(5,120)		Provision for directors' bonuses

1,818,988

1,622,317

		Other		

Allowance for doubtful accounts

		

Total current assets

		Other		Noncurrent assets
		Property, plant and equipment

Total current liabilities

70

77

177,234

202,963

1,241,341

1,339,662

Noncurrent liabilities

			

Buildings and structures, net

160,990

185,779		

Bonds with subscription rights to shares

194,211

11,535

			

Machinery and equipment, net

199,051

252,596		Long-term loans payable

192,943

206,250			Tools, furniture and fixtures, net

56,962

76,337

		

Deferred tax liabilities

2,105

2,895

			Land280,866

299,977		Provision for directors' retirement benefits

1,161

1,161

			Construction in progress

106,393

89,585

		Provision for disaster

1,914

436

804,265

904,276		Provision for product liabilities

4,529

4,890

		

Provision for recycling expenses

7,804

10,255

			Goodwill

237

135

		

Liabilities for retirement benefits

65,22482,813			Other

2,319

2,152

		Other

34,364

26,154

			Total intangible assets

2,556

2,288

		

504,259

346,393

1,745,601

1,686,055

543,485

635,184

Net assets

			Long-term loans receivable

758

711

Shareholders’ equity

			

42

–

		Capital stock

138,064

138,161			Deferred tax assets

145,563

198,422

		Capital surplus

143,868

143,965

			Other

25,692

39,342

		Retained earnings

1,247,242

1,314,587

			Total property, plant and equipment

		Intangible assets

		Assets for retirement benefits

Total noncurrent liabilities

Total liabilities

Investments and other assets

			Investment securities

			

Allowance for doubtful accounts

(402)

(379)

		Treasury stock(189,126)(113,963)

			Allowance for investment loss

(124)

(193)

		

1,340,047

1,482,750

			Total investments and other assets

108,528

95,873

		Total noncurrent assets

Total assets

Total shareholders’ equity

715,017873,088

1,521,839

1,779,653

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

3,340,828

3,401,970

		Deferred gains or losses on hedges

		Foreign currency translation adjustment

		Accumulated adjustment for retirement benefit(10,925)(21,369)

		Total accumulated other comprehensive income(42,511)(90,260)

Subscription rights to shares

ANNUAL REPORT 2019

22

(219)

(140,136)(164,544)

126

115

297,564

323,309

Total net assets

1,595,227

1,715,914

Total liabilities and net assets

3,340,828

3,401,970

Non-controlling interests

48

FY2017(As of 31 March 2018)

ANNUAL REPORT 201949

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Data Section

Consolidated Financial Statement

11-Year Financial/Non-Financial Data

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Reversal of allowance for doubtful accounts
Rent income on noncurrent assets
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of securities
Depreciation of assets for rent
Provision of allowance for doubtful accounts
Provision of allowance for investment loss
Foreign exchange losses
Equity in losses of affiliates
Contribution
Loss of liquidation of subsidiaries and affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent assets
Loss on sales of investment securities
Impairment loss
Measure expenses for final inspection
Total extraordinary loss
Income before income taxes etc.
Income taxes-current
Income taxes-deferred
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent(Amount: Millions of yen)

FY2017(1 April 2017 – 31 March 2018)

FY2018(1 April 2018 – 31 March 2019)

3,757,219
2,651,473
1,105,745
731,563374,182

3,871,496
2,738,958
1,132,538
808,172
324,365

ANNUAL REPORT 2019

Company Information/Stock Information

(Amount: Millions of yen)

FY2017(1 April 2017 – 31 March 2018)

FY2018(1 April 2018 – 31 March 2019)

Income before income taxes

384,033

298,390

Depreciation and amortization

150,877

148,926

2,585

1,514

Net cash provided by (used in) operating activities

Impairment loss
Increase (decrease) in allowance for doubtful accounts

(81)

(112)

51,206
3,688
14
1,563
5,029
17,90579,406

Increase (decrease) in provision for product warranties

27,742

143,410

Interest and dividends income

8,152
352
362
97
106
8,401
13,870846–
6,915
39,104
382,787

4,241
257
318
–
69
2,853
–
3,797
4,446
8,258
24,241
379,530

2,797
1,281
4,079

1,763
158
1,922

247
–
2,585
–
2,833
384,033
121,527(12,933)
108,593
275,439
59,709215,730

210
9
1,514
81,32983,062
298,390103,503(42,000)
61,502
236,887
58,128
178,759

32,559
3,073
–
1,708
–
10,36747,709Consolidated Statement of Comprehensive Income 50Consolidated Financial Statement

Consolidated Statement of Cash Flows(35,633)(54,894)

Interest expenses

8,152

4,241

Foreign exchange losses (gains)

1,064

996

Equity in (earnings) losses of affiliates

13,870(5,029)Loss (gain) on sales of property, plant and equipment(2,550)(1,553)

Loss (gain) on sales of investment securities(1,281)(158)

Decrease (increase) in notes and accounts receivable-trade(41,940)(60,053)

Decrease (increase) in inventories(23,449)(7,431)

Increase (decrease) in notes and accounts payable-trade

5,710(107,695)

Increase (decrease) in accrued expenses

29,72084,193

Other, net

11,325(3,869)Subtotal

530,146

440,875

Interest and dividends income received

36,06255,057

Interest expenses paid

(8,649)(3,636)

Income taxes paid

(112,387)(108,858)

Net cash provided by (used in) operating activities

445,171

383,437

Net cash provided by (used in) investing activities
Payments into time deposits(141,102)(88,201)

Proceeds from withdrawal of time deposits

96,086138,195

Purchase of short-term investment securities(729,488)(819,445)

Proceeds from sales and redemption of securities

775,840

730,247

Purchases of property, plant and equipment(205,854)(251,507)

Other, net(137,066)

39,874

Net cash provided by (used in) investing activities(341,585)(250,848)

Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable

1,443

(125)

Proceeds from long-term loans payable

57,00078,779

Repayment of long-term loans payable(120,874)(95,001)(6,070)(182,400)

Amortization by purchase of convertible bond with stock acquisition rights
Purchase of treasury stock

(6)

(7)

Cash dividends paid

(25,146)(36,340)

Dividends paid to non-controlling interests(20,789)(20,819)

Other, net

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Adjustment for retirement benefits
Share of other comprehensive income of affiliates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

Financial Review(Amount: Millions of yen)

FY2017(1 April 2017 – 31 March 2018)

FY2018(1 April 2018 – 31 March 2019)

275,439

236,887

16,036(1,232)(35,936)(514)
234(21,411)254,027(16,012)(214)(25,318)(10,848)(6,565)(58,958)
177,928

202,870
51,157131,010
46,918Net cash provided by (used in) financing activities

521

(194)

(113,922)(256,110)

Effect of exchange rate changes on cash and cash equivalents(2,848)(4,228)Net increase (decrease) in cash and cash equivalents(13,185)(127,749)

Cash and cash equivalents at beginning of period

614,031

600,846

Cash and cash equivalents at end of period

600,846

473,097

ANNUAL REPORT 201951

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Data Section

Company Information/Stock Information

Financial Review

Consolidated Financial Statement

Company Information/Stock Information

Company NameSUZUKI MOTOR CORPORATION

Date of Incorporation

March 1920

				June 1954
Name changed to Suzuki Motor Co., Ltd.
October 1990 Name changed to Suzuki Motor Corporation

Representative

Representative Director and President Toshihiro Suzuki

No. of Employees[Consolidated] 67,721 [Non-consolidated] 15,431 (as of 31 March 2019)

Net Sales[Consolidated] 3,871,496 million yen [Non-consolidated] 1,940,224 million yen (FY2018)

Head Office		

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

Fiscal Year-End

31 March

Public Accounting Firm

Seimei Audit Corporation

Main Products

Automobiles, Motorcycles, Outboard Motors, Motorised Wheelchairs, etc.

Main Facilities

Head OfficeHamamatsu, Shizuoka

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

43,6689.5

		
		

Kosai Plant
Iwata Plant

Kosai, Shizuoka
Iwata, Shizuoka

Japan Trustee Services Bank, Ltd. (Trust Account)

25,3445.5

				

Osuka Plant
Sagara Plant

Kakegawa, Shizuoka
Makinohara, Shizuoka

Tokio Marine & Nichido Fire Insurance Co., Ltd.

17,961

3.9

				

Hamamatsu Plant
Tokyo Branch OfficeHamamatsu, Shizuoka
Minato-ku, Tokyo

MUFG Bank, Ltd.

16,000

3.5

		
		
		

Yokohama Lab.
Yokohama, Kanagawa
Motorcycle Technical Center Iwata, Shizuoka
Marine Technical Center
Kosai, Shizuoka

JP Morgan Chase Bank 380055

13,071

2.8

Resona Bank, Ltd.

13,0002.8

The Shizuoka Bank, Ltd.

12,6002.7

Sompo Japan Nipponkoa Insurance Inc.

7,761

1.7

Nippon Steel & Sumitomo Metal Corporation

7,759

1.7

The Bank of New York Mellon 140042

7,737

1.7

Consolidated Statement of Cash Flows (as of 31 March 2019)

Incorporated as Suzuki Loom Manufacturing Co.

		Consolidated subsidiaries

		<Japan>		Consolidated subsidiaries in Japan				

130 companies

70 companies

Manufacturing companies including Suzuki Auto Parts Mfg. Co., Ltd., Snic Co., Ltd., etc.
Sales companies including Suzuki Motor Sales Tokyo Inc., Suzuki Motor Sales Kinki Inc., etc.

		<Overseas>		Overseas consolidated subsidiaries

Total number of authorised shares.................................................. 1,500 million
Total number of shares issued......................................................... 491,049,100
Number of shareholders.......................................................................... 31,354
Stock Listing......................................................................Tokyo Stock Exchange
Securities Code........................................................................................... 7269
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

Name of Shareholders

Number of Shares(1,000 shares)

Percentage ofShareholding (%)(Note) 1. Number of shares less than 1,000 is truncated.
2. Percentage of Shareholding is calculated excluding treasury stock (29,651thousand shares).

60 companies

				

Manufacturing companies including Maruti Suzuki India Ltd. (India),
Pak Suzuki Motor Co., Ltd. (Pakistan),				PT. Suzuki Indomobil Motor (Indonesia),
Suzuki Motor (Thailand) Co., Ltd. (Thailand),				

Magyar Suzuki Corporation Ltd. (Hungary), etc.
Sales companies including Suzuki Deutschland GmBH (Germany), etc.

ANNUAL REPORT 2019

Capital..................................................................................... ¥138,161 million

Top Ten Largest Shareholders

Suzuki Group Companies (as of 31 March 2019)52

11-Year Financial/Non-Financial Data

ANNUAL REPORT 201953