ANNUAL REPORT2017

FINANCIAL SECTIONCONTENTS
Five-Year Summary...................................................................................... 25
Consolidated Financial Statements.............................................................. 26
Consolidated Balance Sheets.............................................................................. 26
Consolidated Statements of Income andConsolidated Statements of Comprehensive Income..................................... 28
Consolidated Statements of Changes in Net Assets............................................. 30
Consolidated Statements of Cash Flows.............................................................. 32
Notes to Consolidated Financial Statements....................................................... 33
Independent Auditor’s Report.............................................................................. 51

24 SUZUKI MOTOR CORPORATIONFive-Year Summary
SUZUKI MOTOR CORPORATIONCONSOLIDATED
Millions of yen(except per share amounts)

2017

2016

2015

2014

2013

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

¥3,169,542¥3,180,659¥3,015,461¥2,938,314¥2,578,317

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

159,956

116,660

96,862

107,484

80,389

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

362.54234.98172.67

191.60143.31

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

362.48234.92172.63191.57131.67

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

44.00

32.00

27.00

24.00

18.00

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

1,387,041

1,187,703

1,701,390

1,494,357

1,298,553

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

1,955,973

1,632,630

2,008,729

1,790,832

1,560,218

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

3,115,985

2,702,008

3,252,800

2,874,074

2,487,635

Depreciation and amortization.....

163,397

168,315

134,377

117,188

93,680Years ended 31 March

Net income per share:

SUZUKI MOTOR CORPORATION 25

Consolidated Financial Statements
Consolidated Balance Sheets
As of 31 March 2017 and 2016SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

Millions of yen

2017

2016

¥ 614,031¥ 450,088

349,224

335,343ASSETS
Current assets:
Cash and cash equivalents *NOTE 12 ....................................
Receivables:
Notes and accounts receivable-trade *NOTE 5 .................
Allowance for doubtful accounts....................................

(4,821)(5,528)Inventories...........................................................................

332,116

286,301

Deferred tax assets *NOTE 10 .................................................

113,845

116,378

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

551,576

450,046

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

1,955,973

1,632,630

Land *NOTE 7 ..........................................................................

261,130

255,013

NOTE 7...........................................

Buildings and structures *438,043416,217

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

1,363,140

1,286,385

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

396,523

408,683

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

48,22350,361

2,507,061

2,416,660

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

(1,750,717)(1,659,584)

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

756,344757,076

Investment securities *NOTE 5 ...............................................

314,594

226,516

Investments in affiliates *NOTE 5 ............................................

52,841

46,250NOTE 9 ..................................

44

50

NOTE 10 .................................................

Deferred tax assets *21,14014,773

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

15,047

24,709Total investments and other assets................................

403,667

312,301

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

¥3,115,985¥2,702,008

Property, plant and equipment:

Investments and other assets:

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

26 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

Millions of yen

2017

2016

Short-term loans payable *NOTE 5 and 7 ...................................

¥ 96,643¥ 201,507

Current portion of long-term loans payable *NOTE 5 and 7 ......

119,958

64,982

Accounts payable-trade *NOTE 5 ..........................................

428,063402,624

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

83,07064,055

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

31,86329,486

NOTE 5 ...................................................

Accrued expenses *191,068

183,695

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

76,99566,032

Deferred tax liabilities *NOTE 10 .................................................

55

481

LIABILITIES AND NET ASSETS
Current liabilities:

Others *NOTE 7 .......................................................................

160,402

133,089

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

1,188,121

1,145,956

Noncurrent liabilities:
Bonds with subscription rights to shares *NOTE 5 and 6 ..........

200,400—

222,870

262,797

63,09956,346

Provision for disaster .........................................................

1,976

3,056

Deferred tax liabilities *NOTE 10 .............................................

1,384

7,484

Long-term loans payable *NOTE 5 and 7 ...................................
Liabilities for retirement benefits *NOTE 9 ..............................

NOTE 7........................................................................

Others *51,091

38,663

Total noncurrent liabilities...................................................

540,822368,348

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

1,728,943

1,514,305

Issued: 491,000,000 shares as of
31 March 2017 and 2016...............................................

138,014138,014

Capital surplus....................................................................

144,035

144,166

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

1,058,549

913,656

Net assets:
Shareholders’ equity: *NOTE 13
Capital stock:
Common stock:
Authorised: 1,500,000,000 shares

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

(191,051)(191,169)

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

1,149,548

1,004,668

Valuation difference on available-for-sale securities.........

98,827

77,624

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

1,269

536
(115,551)

Accumulated other comprehensive income:

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

(119,236)

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

(10,543)(9,580)Total accumulated other comprehensive income.............

(29,683)(46,970)

Subscription rights to shares *NOTE 16 ..............................

126

188

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

267,049

229,816

Total net assets¥1,387,041¥1,187,703

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

¥3,115,985¥2,702,008

SUZUKI MOTOR CORPORATION 27

Consolidated Financial Statements

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)Years ended 31 March 2017 and 2016

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2017

2016

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

¥3,169,542¥3,180,659

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

2,261,914

2,313,779

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

907,627

866,879

Selling, general and administrative expenses..................

640,942

671,571

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

266,685

195,308

Interest and dividend income............................................

16,827

20,885Interest expense.................................................................

(4,771)(6,381)Equity in earnings (losses) of affiliates...............................

2,327(2,492)Other income (expenses):

NOTE 4.........................................................

Impairment loss *(39,936)(322)

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

54,067

38,633

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

295,200

245,631

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

92,26387,279Deferred..............................................................................

5,319

5,051

97,58392,330197,616

153,300

Income taxes: *NOTE 10

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

37,66036,640Net income attributable to owners of the parent..............

¥ 159,956¥ 116,660

Yen

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

¥

362.54¥234.98Fully diluted.........................................................................

362.48234.92

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

44.00

32.00

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

28 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements(Consolidated Statements of Comprehensive Income)Years ended 31 March 2017 and 2016

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2017

2016

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

¥197,616¥153,300

Other comprehensive income *NOTE 14
Valuation difference on available-for-sale securities.........

28,375(77,011)

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

505

(29)

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

3,634(100,590)

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

(655)(10,562)

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

(2,318)(3,411)

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

29,541(191,605)

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

227,158(38,304)

Comprehensive income attributable to owners of the parent...

177,276(51,260)

Comprehensive income attributable to non-controlling interests...

49,881

12,955Comprehensive income attributable to:

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

SUZUKI MOTOR CORPORATION 29

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Years ended 31 March 2017 and 2016

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES

Thousandsof sharesof common
stock

Total
Shareholders’equityCapitalstock

CapitalsurplusRetainedearnings

561,047¥138,014¥144,364¥1,082,440¥(62)¥1,364,757

Dividends from surplus......

—

—

—

(16,156)—(16,156)

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

—

—

—

116,660—

116,660

Purchase of treasury stock....

—

—

—

—

(460,479)(460,479)

Disposal of treasury stock......

—

—

(95)

—

180

84

Retirement of treasury stock...

(70,047)—(269,191)—

269,191—

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

——

269,287(269,287)——

Capital increase ofConsolidated subsidiaries.....

—

—

(198)

—

—

(198)

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

—

—

—

—

—

—

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

—

—

(198)

(168,783)(191,107)(360,089)

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

Dividends from surplus......

—

—

—

(15,003)—(15,003)

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

—

—

—

159,956—

159,956

Purchase of treasury stock....

—

—

—

—

(4)

(4)

Disposal of treasury stock......

—

—

(60)

—

122

62

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

—

—

60

(60)

—

—

Capital increase of
consolidated subsidiaries......

—

—

(130)

—

—

(130)

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

—

—

—

—

—

—

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

—

—

(130)

144,892

118

144,880

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

Balance as of
31 March 2015

Balance as of
31 March 2016

Balance as of
31 March 201730 SUZUKI MOTOR CORPORATION

Treasury stockConsolidated Financial Statements

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES

Valuationdifferenceonavailablefor-salesecurities

Balance as of
31 March 2015

¥158,788¥679¥(42,997)¥864¥117,333¥250

Dividends from surplus......

—

—

—

—

—

—

—

(16,156)

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

—

—

—

—

—

—

—

116,660

Purchase of treasury stock....

—

—

—

—

—

—

—

(460,479)

Disposal of treasury stock......

—

—

—

—

—

—

—

84

Retirement of treasury stock ...

—

—

—

—

—

—

—

—

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

—

—

—

—

—

—

—

—

Capital increase ofConsolidated subsidiaries.....

—

—

—

—

—

—

—

(198)

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

(81,163)(142)(72,553)(10,444)(164,304)(62)

10,768(153,598)

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

(81,163)(142)(72,553)(10,444)(164,304)(62)

10,768(513,687)¥77,624¥536¥(115,551)¥(9,580)¥(46,970)¥188

Dividends from surplus......

—

—

—

—

—

—

—

(15,003)

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

—

—

—

—

—

—

—

159,956

Purchase of treasury stock....

—

—

—

—

—

—

—

(4)

Disposal of treasury stock......

—

—

—

—

—

—

—

62

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

—

—

—

—

—

—

—

—

Capital increase ofConsolidated subsidiaries.....

—

—

—

—

—

—

—

(130)

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

21,202732(3,685)(962)

17,287(62)37,23254,458

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

21,202732(3,685)(962)

17,287(62)37,232

199,338¥98,827¥1,269¥(119,236)¥(10,543)¥(29,683)¥126

Balance as of
31 March 2016

Balance as of
31 March 2017

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Total
Accumulated accumulated
adjustment
otherfor retirement comprehensive
incomebenefit

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥219,048 ¥1,701,390¥229,816 ¥1,187,703¥267,049 ¥1,387,041

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

SUZUKI MOTOR CORPORATION 31

Consolidated Financial Statements

Consolidated Statements of Cash Flows
Years ended 31 March 2017 and 2016SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

Millions of yen

2017

2016

¥295,200
163,397
39,936(812)(16,827)
4,771
876(2,327)(667)(47,775)(17,023)(50,386)
45,218
6,473
20,370440,423
15,412(4,613)(84,906)
366,315¥245,631
168,315322(1,029)(20,885)
6,381
4,627
2,492
(83)
(36,760)
3,479
8,298
593
14,857(36,630)
359,610
20,328(7,833)(78,010)294,095(38,552)
8,367(297,947)
268,519(192,054)(36,898)(288,564)(61,915)
28,596(274,553)
173,478(162,574)
54,533(242,435)(102,949)
83,172(63,449)

27,08845,400(108,365)

200,500(4)(15,003)(9,417)(3,342)89,505(3,313)
163,942450,088¥614,031—(460,479)(16,156)(7,504)(344)(520,361)(13,471)(482,172)
932,261¥450,088

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

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

32 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

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

NOTE 2: Summary of significant accounting policies(a) Principles of consolidation
The consolidated financial statements for the years ended 31 March 2017 and 2016 include the accounts of the Group, andthe numbers of consolidated subsidiaries were 136 respectively. In addition, the numbers of investments in affiliated companies for the years ended 31 March 2017 and 2016 were 32 and 33 respectively. All significant inter-company accounts andtransactions are eliminated in consolidation. Investments in affiliated companies are accounted for by the equity method.
The difference at the time of acquisition between the cost and underlying net equity of investments in consolidated subsidiaries (goodwill) and in affiliated companies accounted for under the equity method is, as a rule, amortized on a straight-line
basis over a period of five years after appropriate adjustments.
The account settlement date of 19 consolidated subsidiaries is 31 December, however Magyar Suzuki Corporation Ltd. and17 others are consolidated based on the financial statements of provisional account settlement as of 31 March. Subsidiary
which has been consolidated based on the financial statements as of 31 December is 1 subsidiary.
The account settlement date of other consolidated subsidiaries is the same as the consolidated account settlement date.
(b) Allowance for doubtful accounts
In order to allow for loss from bad debts, estimated uncollectible amount based on actual ratio of bad debt is appropriated as
general receivable. With respect to specific receivable with higher default possibility, recoverable amount is estimated respectively and uncollectible amount is appropriated.
(c) Allowance for investment loss
In order to allow for loss from non-marketable securities, the difference between book balue and fair value is appropriated.
(d) Provision for product warranties
The provision is appropriated into this account based on the warranty agreement and past experience in order to allow for
expenses related to the maintenance service of products sold.
(e) Provision for directors' bonuses
In order to defray bonuses for directors and company auditors, estimated amount of such bonuses is appropriated.
(f) Provision for directors' retirement benefits
The amount to be paid at the end of fiscal year had been posted pursuant to the Company’s regulations on the retirement
allowance of Directors and Company Auditors. However, the Company’s retirement benefit system for them was abolished at
the closure of the Ordinary General Meeting of Shareholders held on 29 June 2006. And it was approved at Ordinary General
Meeting of Shareholders that reappointed Directors and Company Auditors were paid their retirement benefit at the time of
their retirement, based on their years of service. Estimated amount of such retirement benefits is appropriated at the end of thecurrent consolidated fiscal year. Furthermore, for the Directors and Company Auditors of some consolidated subsidiaries, theamount to be paid at the end of the year was posted pursuant to their regulation on the retirement allowance of Directors andCompany Auditors.
(g) Provision for disaster
Reasonably estimated amount is appropriated for anticipated loss mainly caused by relocation of plants and facilities locatedin the Ryuyo Region in Iwata City, Shizuoka Prefecture where massive tsunami damages caused by Tokai and Tonankai Earthquake are anticipated.
(h) Provision for product liabilities
The provision is appropriated for product compensation related to North American market which is not covered by “Product
Liability Insurance” based on the actual payments.
(i) Provision for recycling expenses
The provision is appropriated for an estimated expense related to the recycle of products of the Company based on number of vehicles owned in the market, etc.

SUZUKI MOTOR CORPORATION 33

Consolidated Financial Statements(j) Short-term investment securities and Investment securities
The Company and its subsidiaries hold securities of listed companies, which have a risk of price fluctuations, and non-listedcompanies whose stock prices are difficult to be evaluated.
If the Company and its subsidiaries judge the decline in investment value is not temporary, the Company and its subsidiaries
recognise revaluation loss based on the reasonable standard. If the stock market falls, the Company and its subsidiaries may
incur significant loss on valuation of securities.
Securities have to be classified into four categories: trading securities; held-to-maturity debt securities; investments of theCompany in equity securities issued by consolidated subsidiaries and affiliates; and available-for-sale securities.
According to this classification, securities held by the Company and its subsidiaries are available-for-sale securities. Availablefor-sale securities for which market quotations are available are stated at market value method based on the market values
as of the consolidated account settlement date (the evaluation differences shall be reported as other comprehensive income,and sales costs shall be calculated mainly by moving average method).
Available-for-sale securities for which market quotations are unavailable are stated at cost by moving average method.
(k) Hedge accounting
Gains or losses arising from changes in fair value of the derivatives designated as “hedging instruments” are deferred until thegains and losses on the hedged items or transactions are recognised.
If foreign currency forward contracts meet certain criteria, exceptional hedge accounting is applied and these contracts arehandled together with hedged items. If interest rate swap contracts meet certain criteria, special exceptional hedge accounting is applied and these contracts are handled together with hedged items. If cross currency interest rate swap contracts
meet certain criteria, integration method (special exceptional method and exceptional method) is applied and these contracts
are handled together with hedged items.
The derivatives designated as hedging instruments by the Company and its subsidiaries are principally forward exchange
contracts, interest swaps and cross currency interest rate swaps. The related hedged items are foreign currency denominatedtransaction and borrowings.
The Company and its subsidiaries have a policy to utilise the above hedging instruments in order to reduce our exposure to
the risks of the fluctuation of interest rate and foreign exchange. Thus, our purchases of the hedging instruments are limited
to, at maximum, the amounts of the hedged items. The Company and its subsidiaries evaluate effectiveness of their hedging
activities by reference to the accumulated gains or losses on the hedging instruments and the related hedged items from thecommencement of the hedges.
(l) Foreign currency translation
All monetary assets and liabilities denominated in foreign currencies, whether long-term or short-term, are translated into
Japanese yen at the exchange rates prevailing at the balance sheet date. Resulting gains and losses are included in net
income or loss for the period.
Assets and liabilities of the foreign subsidiaries and affiliates are translated into Japanese yen at the exchange rates prevailing at the balance sheet date.
The components of net assets are translated into Japanese yen at their historical rates. Profit and loss accounts for the
fiscal year are translated into Japanese yen by using the average exchange rate during the fiscal year. Differences inyen amounts arising from the use of different rates are presented as “Foreign currency translation adjustment” and “Noncontrolling interests” in the net assets.
(m) Inventories
Stated at cost mainly determined by the gross average method (figures on the consolidated balance sheet are measured by
the method of book devaluation based on the reduction of profitability).
(n) Method of depreciation and amortization of significant depreciable assets
a. Property, plant and equipment (excluding lease assets)	����������������� Mainly declining balance method for the Company and domestic subsidiaries and mainly straight-line
method for foreign subsidiaries.
Main durable years are as follows:
Buildings and structures		
3 to 75 years
Machinery, equipment and vehicles 3 to 15 years
b. Intangible assets (excluding lease assets)	����������������� Straight-line method
c. Lease assets
Finance leases which transfer ownership	����������������� The same method as depreciation and amortization of self-owned noncurrent assets.
Finance leases which do not transfer ownership	����������������� Straight-line method with the lease period as the durable years. With respect to lease assets with guaranteed residual value under lease agreement, remaining value is the guaranteed residual value. With respect
to other lease assets, remaining value is zero.
(o) Income taxes
The provision for income taxes is computed based on the income before income taxes included in the consolidated statements of income. The asset and liability approach is adopted to recognise deferred tax assets and liabilities for the expected
future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.
34 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

In making a valuation for the possibility of collection of deferred tax assets, the Company and its subsidiaries estimate their
future taxable income reasonably. If the estimated amounts of future taxable income decrease, deferred tax assets may decrease and income taxes may be posted.
Consolidated tax payment has been applied to the Company and its domestic wholly owned subsidiaries from the fiscal year
ended 31 March 2012.
(p) Retirement benefits
With respect to calculation of retirement benefit obligations, benefit formula basis method is used to attribute expected benefit
to period up to the end of fiscal year ended 31 March 2017. With respect to past service costs, they are treated as expense
on a straight line basis over the certain years within the period of average length of employees’ remaining service years at thetime when it occurs. With respect to the actuarial gain or loss, the amounts, prorated on a straight line basis over the certain
years within the period of average length of employees’ remaining service years in each year in which the differences occur,are respectively treated as expenses from the next term of the year in which they arise.
Retirement benefit cost and retirement benefit obligation are calculated based on the actuarial assumptions, which include
discount rate, assumed return of investment ratio, revaluation ratio, salary rise ratio, retirement ratio and mortality ratio. Discount rate is decided based on yield on low-risk and long-term bonds, and assumed return of investment ratio is decided
based on the investment policies of pension assets of each pension system etc.
Decreased yield on long-term bond leads to a decrease in discount rate and it has an adverse influence on the calculation ofretirement benefit cost. However, the pension system adopted by the Company has a cash balance type plan, and thus therevaluation ratio, which is one of the base ratios, can reduce adverse effects caused by the decrease in discount rate.
If the investment yield of pension assets is less than the assumed return of investment ratio, it will have an adverse effect on
the calculation of retirement benefit cost. However, by focusing on low-risk investments, this influence should be minimal in thecase of the pension fund systems of the Company and its subsidiaries.
(q) Net income per sharePrimary net income per share is computed based on the weighted average number of shares issued during the respective
years. Fully diluted net income per share is computed assuming that all stock options are exercised. Cash dividends per
share are the amounts applicable to the respective periods including dividends to be paid after the end of the period.
(r) Cash and cash equivalents
All highly liquid investments with original maturities of three months or less when purchased are considered cash equivalents.
(s) Reclassification
Certain reclassifications of previously reported amounts are made to conform to current classifications.

NOTE 3: Additional Information
Application of Implementation Guidance on Recoverability of Deferred Tax Assets
The “Implementation Guidance on Recoverability of Deferred Tax Assets” (Accounting Standards Board of Japan (ASBJ) Statement No.26, 28 March 2016) has been applied since the fiscal year ended 31 March 2017.

NOTE 4: Impairment loss
The Group recorded impairment loss in the following group of assets as of 31 March 2017.
Use
Assets for automobile business

Location
Thailand
Asia

Assets for motorcycle business

Asia

Assets for other business
Assets for rent
Idle assets

Japan
Japan
Japan

Classification
Machinery and equipment and vehicles,
Tools, furniture and fixtures, etc.
Machinery and equipment and vehicles, etc.
Machinery and equipment and vehicles,
Buildings and structures, etc.
Land
Land
Land
Total

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

The assets are divided into groups of the assets for business and the assets for rent respectively, mainly inunits of business facilities. With respect to the assets which are decided to be disposed and idle assets which
are not expected to be used in the future, tests of impairment are conducted based on individual assets.

SUZUKI MOTOR CORPORATION 35

Consolidated Financial Statements[Assets for business](Suzuki Motor (Thailand) Co., Ltd,)
Suzuki Motor (Thailand) Co., Ltd, a fully owned subsidiary of the Company in Thailand commenced its
automobile production in March 2012, and has exported its product worldwide, besides sales in theThailand's domestic market. However, due to slowdown in the domestic market as well as appreciation ofThai Baht, the performance of the automotive business in Thailand has remained at low level. In FY2016,
the Company carried out the examination on future recoverability of the business assets of Suzuki Motor(Thailand) Co., Ltd. Since the examination indicated that the recoverable amount fell below the book valueof the assets, the Company decided to record an impairment loss as an extraordinary loss.
(Others)
Since the examination indicated that the recoverable amount fell below the book value of the assets,
the Company decided to record an impairment loss as an extraordinary loss.
[Assets for rent and idle assets]
The Company reduced the book value of the group of the assets whose market value particularly fell to the recoverable amountand recorded an impairment loss as an extraordinary loss.
The impairment loss consists of ¥6,696 million for buildings and structures, ¥15,320 million for machinery and equipment andvehicles, ¥7,294 million for tools, furniture and fixtures, ¥8,101 million for land, and ¥2,523 million for construction in progress.
The recoverable amount of the asset group is measured by net selling price or value in use, and the land value is evaluated byprice calculated on a rational basis.

NOTE 5: Financial Instruments(a) Matters for conditions of financial instrumentsa. Policy for financial instruments
With respect to the fund management, the Group uses short-term deposits and short-term investment securities, and withrespect to the fund-raising, the Group uses borrowings from financial institutions such as banks and issuance of bonds. The
Group uses derivatives to hedge and manage the risks of the fluctuations of interest rates and exchange rates, and does
not use derivatives for speculation purposes.
b. Type of financial instruments, risks and risk management
With respect to customers’ credit risks from operating receivables such as notes and accounts receivable-trade, in order tomitigate the risks, the Group identifies credit standing of major counterparties and manages due date and receivable balance of each counterparty in line with our rules and regulations for credit control. The Group hedges the risks of the fluctuation exchange rate from operating receivables denominated in foreign currency by forward exchange contract in principle.
Investment securities are mainly stocks of companies with which the Group has business relationship, and with respect tolisted stocks, the Group quarterly identifies those fair values and reports them to the Board of Directors.
Basically, accounts payable-trade is due within one year.
Applications of borrowings are fund for operating capital (mainly short-term) and capital expenditures (long-term), and theGroup uses interest-rate swaps or cross currency interest rate swaps for the risks of the fluctuation of interest rate and exchange rate of some long-term borrowings.
Objectives of derivative transactions are foreign currency forward contracts to hedge the risks of the fluctuation of exchange
rate related to receivables and payables denominated in foreign currencies, interest rate swaps to hedge the risks of thefluctuation of interest rate related to borrowings, and cross currency interest rate swaps to hedge the risks of the fluctuation of
exchange rate and interest rate related to borrowings and lending. The Group executes and manages derivatives within theactual demand in line with our rules and regulations which set out the authority to trade. In addition, in using derivatives, theGroup deals with financial institutions which have high credit grade in order to reduce credit risks.
In addition, each company of the Group manages liquidity risk related to accounts payable and borrowings by making afinancial plan.
c. Supplement to fair values of financial instruments
Fair values of financial instruments include values based on quoted prices in active markets and values assessed byrational valuation techniques in case quoted prices are not available. Since the rational valuation techniques include variable factors, the results of valuation may differ when different assumptions are applied. In addition, in Note 5 (d) Derivativetransactions, contract amounts do not present market risks for the derivative transactions.

36 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements(b) Matters for fair values of the financial instruments
Carrying amounts in the consolidated balance sheet, fair values and difference as of 31 March 2017 and 2016 were as follows. Financial instruments whose fair value cannot be reliably measured are not included in the below table.
Millions of yen
2016

2017

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

Carrying
amount¥693,952
349,224

Fair value¥693,952
351,454—
2,229

Carrying
amount¥497,187
335,343

Difference¥

Fair value

Difference¥497,187
337,385

¥

—
2,041

636,102660
1,679,940
428,063
96,643
119,958
191,068

636,102
2,104
1,683,613
428,063
96,643
119,809
191,068

—
1,443
3,673
—
—
148
—

488,274588
1,321,394
402,624
201,507
64,982
183,695

488,274
1,024
1,323,872
402,624
201,507
64,924
183,695

—
436
2,477
—
—
58
—

200,400

251,450(51,050)———

222,870
1,259,003

221,236
1,308,270

1,634(49,267)

262,797
1,115,607

260,818
1,113,569

1,979
2,037

1,544
296

1,544
296

—
—

1,340
736

1,340
736

—
—

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

*1. Matters for methods used to measure fair values of financial instruments
Assets:a. Cash and deposits
Since fair values of deposits are approximately equal to the book values, book values are used as fair values.
b. Notes and accounts receivable-trade
Fair values of sales finance receivables are calculated on the discount method by the expected rate applied to newloan contract, on each receivable classified into a certain term.
Notes and accounts receivable-trade except sales finance are settled in short term and those fair values are approximately equal to the book values. Therefore, book values are used as fair values.
c. Short-term investment securities and Investment securities
With respect to these fair values, fair values of stock are prices of exchanges. With respect to negotiable certificate
of deposit and other types of securities, book values are used as fair values because they are settled in short term
and those fair values are approximately equal to the book values.
Liabilities:
a. Accounts payable-trade, Short-term loans payable and Accrued expenses
Since these are settled in short term and those fair values are approximately equal to the book values, book values
are used as fair values.
b. Current portion of long-term loans payable and Long-term loans payable
These fair values are measured by discounting based on the estimated interest rates at which similar new loans withsame amount of principal and interest could have been borrowed.
c. Bonds with subscription rights to shares
These fair values are calculated based on the prices offered by financial institutions, etc.
Derivatives:
Please refer to Note 5 (d) Derivative transactions.

SUZUKI MOTOR CORPORATION 37

Consolidated Financial Statements*2. Financial instruments whose fair value cannot be reliably determined
Millions of yen

2017

2016

Unlisted stock other than stocks of affiliates¥17,188¥17,882

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

20,514

17,188Others.............................................................

77

210

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

*3. The amounts to be redeemed after the account settlement date of monetary receivables and available-for-sale securities
Millions of yen
2016

2017
Over 1 year,
Within5 years

Within1 yearCash and deposits
Notes and accounts
receivable- trade
Securities and investment
securities with maturities
Total

Over 5 years,
Within
10 years

Over 1 year,
Within5 years

Within1 year—¥ —¥ 497,187

226,403

122,412409

338,756¥1,259,111—¥122,412—¥409¥ 693,952¥¥

Over 5 years,
Within
10 years—¥ —244,470

90,513360

279,571¥1,021,229—¥90,513—¥360(c) Securities
a. Available-for-sale securities with market value
Millions of yen

2017
Acquisition
cost

2016

Carrying
AmountDifference

Acquisition
cost

Carrying
AmountDifference¥ 99,152

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

¥ 50,691¥ 127,569¥ 76,878¥ 50,789¥149,942

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

—

—

—

—

—

—

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

413,408

477,832

64,423302,911332,224

29,313

Sub-Total¥464,100¥605,401¥141,301¥353,700¥482,166¥128,465¥¥¥

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

¥

758

¥

700

¥

(58)

6,549

6,107

(441)

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

—

—

—

—

—

—

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

30,00030,000————Sub-Total¥ 30,758¥ 30,700¥

Total¥494,858¥636,102¥141,243

38 SUZUKI MOTOR CORPORATION

(58)

¥

6,549

¥360,249¥

6,107¥488,274¥(441)¥128,024

Consolidated Financial Statements

b. Available-for-sale securities soldMillions of yen

2017

2016

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

¥337,540¥247,317

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

47,77536,760c. Marketable securities impaired / Loss on valuation of securities
Year ended 31 March 2016
The Group recognised impairment of 1,337 million yen on available-for-sale securities. With respect to impairing securities with a market value, if the market value at the end of the period has significantly declined compared to the acquisition cost, the Group recognises impairment to the extent deemed necessary based on recoverability. With respect toimpairing securities without a market value, if the real price has significantly declined compared to the acquisition cost,
the Group recognises impairment to the extent deemed necessary based on recoverability.
Year ended 31 March 2017
The Group recognised impairment of 0 million yen on available-for-sale securities. With respect to impairing securities
with a market value, if the market value at the end of the period has significantly declined compared to the acquisition
cost, the Group recognises impairment to the extent deemed necessary based on recoverability. With respect to impairing securities without a market value, if the real price has significantly declined compared to the acquisition cost, theGroup recognises impairment to the extent deemed necessary based on recoverability.

(d) Derivative transactions
The contract/notional amounts of derivatives which are shown in the below table do not represent the Group’s exposure tomarket risk. With respect to fair values of derivatives which are shown in the below tables, commodity transactions are valued
based on market price. Other transactions are valued based on the price offered by financial institutions.
a. Derivative transactions to which hedge accounting is not applied
Currency-related transactions (non-market transactions)

Millions of yen
2016

2017
Type
Foreign currency
forward contracts
Selling
USD
Buying
JPY
EUR
USD
MXN
Cross currency
Swap
Buying
JPY
Total

Contract/
notional
amount¥Amountdue after
one year

Fair value

Gain(loss)¥

2

Contract/
notional
amountAmountdue after
one year

Fair value2¥ 5,444

—

¥175

¥175

Gain
(loss)

565—¥

13,5001,377
17,432
—

—
—
—
—

221
(6)
(371)
—

221
(6)
(371)
—

3,733
766
83
57

—
—
—
—

160
36
(0)
(1)

160
36
(0)
(1)

13,000¥45,875

—
—

354
¥199

354
¥199

—
¥10,085

—
—

—
¥370

—
¥370

SUZUKI MOTOR CORPORATION 39

Consolidated Financial Statements

Interest and currency related transactions (non-market transactions)

Millions of yen
2016

2017
Contract/
notional
amountAmountdue after
one year

Fair value

Cross currencyinterest rate swap
Pay floatingreceive floating
Pay INR
receive USD

¥—

¥—

¥—

Pay fixed
receive floating
Pay IDR
receive USD——

Pay fixed
receive floating
Pay IDR
receive JPY

—

Total

¥—

Type

Contract/
notional
amountAmountdue after
one year¥—¥ 2,610

¥

—

¥842

¥842

—

—

11,268

11,268

(932)

(932)

—

—

—

10,00010,000

418

418

¥—

¥—

¥—

¥23,878¥21,268

¥328

¥328

Gain
(loss)

Fair value

Millions of yen

Commodity-related transactions (market transactions)
2016

2017
Type

Gain
(loss)

Contract/
notional
amountAmountdue after
one year

Fair value¥2,376—¥96¥2,376—¥96

Contract/
notional
amountAmountdue after
one year

Fair value

¥96

¥859

—

¥36

¥36

¥96

¥859

—

¥36

¥36

Gain
(loss)

Gain(loss)

Commodity
futures contract
BuyingTotal

Earthquake-related transactions
Since fair values for derivative contract relating to earthquakes were not measured due to characteristic of instruments, they
are not accounted for at fair values.
b. Derivative transactions to which hedge accounting is applied
Currency-related transactions
2017
2016
Type
Contract/
Amount due
Contract/
Amount due
Fair value
notional amount after one year
notional amount after one year
Foreign currency forward contracts (Principle hedge accounting)Selling (Principal hedged item: Accounts receivable-trade)USD¥ 8,074—¥ 753¥ 6,790
—
EUR
—
—
—
5,738
—
CAD
—
—
—
296
—
AUD
2,703
—
307
2,897
—
NZD
714
—
59
270
—
GBP
779
—
19
575
—
MXN
1,095
—
(32)
1,657
—
PLN
1,115
—
(11)
—
—
Buying (Principal hedged item: Accounts payable-trade)
USD
16
—
0
—
—
THB
2,555
—
8
4,289
—
EUR
—
—
—
515
—

40 SUZUKI MOTOR CORPORATION

Millions of yen
Fair value

¥106
227
3
(81)
(1)
35
(17)
—
—
(41)
1

Consolidated Financial Statements

Foreign currency forward contracts (Exceptional hedge accounting)Selling (Principal hedged item: Accounts receivable-trade)
USD
3,931
—
*
EUR
11,930
—
*
CAD
236
—
*
AUD
775
—
*
NZD
451
—
*
GBP
10,020
—
*
MXN
1,677
—
*
CNY
—
—
*
PLN
1,768
—
*
Buying (Principal hedged item: Accounts payable-trade)
THB
3,373
—
*
JPY
—
—
*
Total
¥51,221—¥1,103961
20,169
353
3,417
308
195
597
2,371
—

—
—
—
—
—
—
—
—
—

*
*
*
*
*
*
*
*
*

2,223
400
¥54,032

—
—
—

*
*
¥231

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

Interest and currency related transactions

Millions of yen

2017
2016
Principal
Type
Contract/
Amountdue
Contract/
Amountduehedged item
Fair value
notional amount after one year
notional amount after one year
Interest rate swap (special exceptional hedge accounting)
Pay fixed
Long-term
receive floating debt
¥ 12,500¥ 12,500*¥ 32,500¥ 12,500
Cross currency interest rate swap (Principle hedge accounting)
Pay fixed
receive floating
Pay IDR
receive USD
13,631
4,599(89)
12,608
5,055
Long-termdebt
Pay fixed
receive floating
Pay THB
receive USD
13,181
13,181
1,086
12,89912,899Pay fixed
receive floating
Current
Pay IDR
portion ofreceive USD
11,219—(430)——
long-term
Pay fixed
loans
receive floating payable
Pay IDR
receive JPY
10,000—(126)——
Cross currency interest rate swap (Integration hedge accounting)
Pay fixed
receive floating
Pay JPY
receive USD
129,172
59,172*
118,000
118,000
Long-termdebt
Pay fixed
receive fixed
Pay JPY
receive EUR
11,30011,300*——
Pay fixed
receive floating
Pay CNY
243
243
*
243
243
receive JPY
Long-term
receivable
Pay fixed
receive floating
Pay INR
receive USD
2,720
2,720
*
2,732
2,732
Total
¥203,967¥103,717¥440¥178,983¥151,430

Fair value

*

—

1,109

—

—

*

*

*

*
¥1,109* Since these cross currency interest rate swap transactions are handled together with hedged items, their fair values are included in that of hedged items.

SUZUKI MOTOR CORPORATION 41

Consolidated Financial Statements

NOTE 6: Bonds with subscription rights to shares(1) Name of the bond(2) Total issue amount(3) Issue price(4) Offer price(5) Balance as of 31 March 2017
(Millions of yen)
(6) Coupon(7) Closing and issue date(8) Redemption price(9) Redemption at maturity, Early redemption
and Cancellation by acquisition(10) Matters concerning the stock acquisitionrightsi. Type of share to be issued upon
exercise of the stock acquisition rights
ii. Total number of stock acquisition rights
iii. Conversion priceiv. Exercise period and Supplementary
conditions

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

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

100,400

100,000

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

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

Common stock of the Company

Same as on the left

10,000 units plus the units of the aggregate principal amountof the bonds in respect of replacement certificates of thebonds with stock acquisition rights divided by 10 million yen
4,120.0 yen (please refer to vii.)
From 15 April 2016 to 17 March 2021
[Automatic-acquisition-upon-exercise clause (subject to the
maximum number of shares to be delivered)]
Exercising by 31 December 2020
[One-time acquisition clause (subject to the maximum numberof shares to be delivered)]
Giving notice from 31 March 2020 to 16 December 2020

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

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

Giving notice from 31 March 2022
to16 December 2022
[Contingent conversion mechanism (130%)][Same as on the left]
Until 31 December 2020
Until 31 December 2022
The bonds in respect of the relevant stock acquisition rights shall be contributed upon exercising ofeach stock acquisition right, and the price of the bonds shall be equal to the principal amount of thebonds.
The amount of capital stock increased in case the stocks are issued by exercising stock acquisitionrights shall be half of the maximum increase of capital stock and etc., calculated in accordance with
Article 17 of the ‘‘Company Calculation Ordinance,’’ and any amount less than one yen arising fromsuch calculation shall be rounded up. The increase in capital surplus shall be obtained by subtracting
the capital stock increased from the maximum increase of capital stock and etc.
The dividend of fiscal year end retained earnings was approved as 27 Yen per share and the annual
dividend was determined as 44 Yen per share during the Ordinary General Meeting of Shareholders
held on 29 June 2017.
By the approval and determination, the conversion price of Euro Yen Zero Coupon (subject to the
maximum number of shares to be delivered) Convertible Bond due 2021 and Euro Yen Zero Coupon(subject to the maximum number of shares to be delivered) Convertible Bond due 2023 has beenadjusted to 4,116.3 Yen retroactively since 1 April 2017 in accordance with the clause of Adjustmentsof the Conversion Price in the guideline for the bonds.
None
Proceeds from the issuance of the bonds shall be used as strategic investment for accelerating theGroup’s mid-term management plan and for strengthening its competitive position.

NOTE 7: Short-term debts and long-term debts
Millions of yen

2017

2016

¥216,601¥266,490

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

42 SUZUKI MOTOR CORPORATION

1241¥216,613¥266,531

Consolidated Financial Statements

Long-term debts were as follows:
Millions of yen

2016

2017
Long-term loans payable maturing through 2022
Unsecured..........................................................................

¥222,870¥262,797

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

7

16

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

12,54011,900¥235,419¥274,714

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

The aggregate annual maturities of long-term debts excluding other interest-bearing debts as of 31 March 2017 were as follows:Year ending 31 MarchMillions of yen

2019........................................................................................

¥ 79,1102020........................................................................................

28,1882021........................................................................................

18,578Thereafter................................................................................

97,000¥222,878

Assets pledged as collateral as of 31 March 2017:
Millions of yen

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

¥552

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

97
¥649

Secured liabilities as of 31 March 2017:
Millions of yen

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

¥300

NOTE 8: Loan commitment
The Company has the commitment line contract with six banks for effective financing. The outstanding balance of this contract
was as follows:
Millions of yen

2016

2017
Commitment line contract total..............................................

¥250,000¥250,000

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

——¥250,000¥250,000

VarianceSUZUKI MOTOR CORPORATION 43

Consolidated Financial Statements

NOTE 9: Retirement and severance benefits
1. Outline of adopted retirement benefit systems
The Company established cash balance corporate pension plan and lump-sum retirement benefit plan. Some of consolidated subsidiaries established defined benefit corporate pension plan and lump-sum retirement benefit plan. Some of foreign consolidated subsidiaries established defined contribution plan.
Some of consolidated subsidiaries adopt simplified method for the calculation of retirement benefits.
2. Defined benefit plan(a) Reconciliation of retirement benefit obligation from the opening balance to the closing balance
Millions of yen

Opening balance retirement of benefit obligation................
Service cost...........................................................................
Interest cost...........................................................................
Actuarial differences..............................................................
Retirement allowance paid...................................................
Past service cost...................................................................
Others....................................................................................
Closing balance of retirement benefit obligation

2017

2016

¥152,161
8,706
754
1,832
(5,844)100
4,364¥162,076¥133,418
8,322
1,855
14,073(4,753)347(1,103)¥152,161(b) Reconciliation of pension assets from the opening balance to the closing balance
Millions of yen

2017

2016

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

¥95,865¥94,487

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

1,698

1,537

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

(671)(1,344)Contribution from employers.................................................

5,254

4,856

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

(3,599)(3,452)Others....................................................................................

473

(219)

¥99,021¥95,865

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

2017

2016

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

¥112,320¥108,729

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

(99,021)(95,865)

13,29912,864

Defined benefit obligation of unfunded severance plan......

49,75543,431

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

¥63,055¥56,296

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

¥63,099¥56,346

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

(44)

(50)

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

¥63,055¥56,29644 SUZUKI MOTOR CORPORATION

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

2016

2017
Service cost............................................................................

¥8,706¥8,322

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

754

1,855

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

(1,698)(1,537)

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

1,875

987

Amortization of past service cost...........................................

(333)

(342)

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

110

48

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

¥9,415¥9,334(e) Adjustment for retirement benefits
Breakdown of adjustment for retirement benefit recognised were as follows:
Millions of yen

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

2017¥(433)

2016¥(293)

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

(447)(14,782)

Total¥(881)¥(15,075)(f) Accumulated adjustment for retirement benefits
Breakdown of accumulated adjustment for retirement benefit recognised were as follows:
Millions of yen

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

2017¥(2,591)2016¥(2,158)

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

(11,885)(11,437)

Total¥(14,477)¥(13,596)(g) Pension assets
a. Major breakdown of pension assets
Portion of major components to total pension assets were as follows:
2017

2016

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

45.4%

43.9%

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

37.6%

37.9%

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

17.0%

18.2%

100.0%

100.0%

Total

b. Method to determine long-term expected return on pension assets
Expected return on pension assets were determined by considering the current and anticipated future portfolio of pension assets and current and anticipated future long-term performance of various asset classes that comprise pension
assets.
(h) Actuarial assumptions
2017

2016

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

mainly 0.15%

mainly 0.15%

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

mainly 1.80%

mainly 1.80%

3. Defined contribution plan
Year ended 31 March 2016
Contribution to defined contribution plan by the Company and consolidated subsidiaries was 233 million yen.
Year ended 31 March 2017
Contribution to defined contribution plan by the Company and consolidated subsidiaries was 340 million yen.

SUZUKI MOTOR CORPORATION 45

Consolidated Financial Statements

NOTE 10: Income taxes(a) Breakdown of deferred tax assets and deferred tax liabilities by their main occurrence causes
Millions of yen

2017

2016

¥54,224¥57,330

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

38,171

34,044

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

21,69819,383

Loss on valuation of securities...........................................

12,586

13,655

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

3,210

3,606

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

66,25981,523

Deferred tax assets
Impairment loss and Excess-depreciation........................

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

196,151

209,544

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

(38,934)(36,743)

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

¥157,217¥172,800¥(19,590)¥(39,938)

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

(8,682)(5,264)

Reserve for advanced depreciation of noncurrent assets....

(3,678)(3,265)

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

8,279(1,145)

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

(23,671)(49,614)

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

¥133,545¥123,186* Net amounts of deferred tax assets are included in the following accounts in the consolidated balance sheets.
Millions of yen

2017

2016

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

¥113,845¥116,378

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

21,14014,773Current liabilities – Deferred tax liabilities..........................

(55)

(481)

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

(1,384)(7,484)(b) Breakdown of the differences between the statutory tax rate and the effective tax rate
2017

2016

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

30.21%

32.34%Tax rate difference..............................................................

4.15%

2.82%

Effect of change of tax rate................................................

—

2.64%

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

(1.31)%(0.21)%

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

33.06%

37.59%NOTE 11: Research and development costs
Research and development costs included in selling, general and administrative expenses were as follows:
Millions of yen

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

46 SUZUKI MOTOR CORPORATION

2017

2016

¥131,539¥131,031

Consolidated Financial Statements

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

2017

2016

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

¥693,952¥497,187

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

338,756

279,571

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

(79,920)(47,098)

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

(338,756)(279,571)¥614,031¥450,088

NOTE 13: Net assets
The Companies Act of Japan (“the Companies Act”) requires that at least 50% of the contribution of new shares shall be
included in capital stock. The portion to be recorded as capital stock is determined by resolution of the meeting of the Boardof Directors. Proceeds in excess of the capital stock shall be credited to “Legal capital surplus”.
The Companies Act provides that an amount equivalent to 10% of cash dividends shall be appropriated as a legal capitalsurplus or legal retained earnings until total amount of them reaches a certain limit, defined as 25% of the capital stock.
The Companies Act allows both legal capital surplus and legal retained earnings to be transferred to the capital stock
following the approval at an Ordinary General Meeting of Shareholders.
The legal retained earnings of the Company and its subsidiaries are included in “Retained earnings” on the consolidatedbalance sheets and are not shown separately.
According to the Companies Act, the articles of incorporation allow to repurchase treasury stock and dispose of suchtreasury stock by resolution of meeting of the Board of Directors.

NOTE 14: Other comprehensive income
Millions of yen

2017

2016

Loss (gain) arising during the period.................................

¥62,839¥(78,299)

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

(51,445)(35,422)

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

11,393(113,722)

Valuation difference on available-for-sale securities

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

16,982

36,711

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

¥28,375¥(77,011)

Loss (gain) arising during the period.................................

¥5,324¥2,939Reclassification adjustments..............................................

(4,554)(3,088)Before tax effect..................................................................

770

(148)

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

(264)

119

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

¥505

¥(29)

¥3,634¥(101,996)

Deferred gains or losses on hedges

Foreign currency translation adjustment
Loss (gain) arising during the period.................................
Reclassification adjustments..............................................

—

1,405

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

¥3,634¥(100,590)

Loss (gain) arising during the period.................................

¥(1,684)¥(15,274)

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

803

198

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

(881)(15,075)

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

225

4,513

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

¥(655)¥(10,562)

Adjustment for retirement benefit

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

¥(2,318)¥(3,411)

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

¥29,541¥(191,605)
SUZUKI MOTOR CORPORATION 47

Consolidated Financial Statements

NOTE 15: Cash dividends
Resolutions

Total amount of cash dividends
Cash dividends per share
Record date
Effective dateOrdinary General
Meeting of Shareholders
held on 29 June 2016
¥7,501 million¥17.0031 March 2016
30 June 2016

Meeting of theBoard of Directors
held on 4 November 2016
¥7, 501million¥17.0030 September 2016
30 November 2016

Dividends which record date was in the current consolidated fiscal year and effective date was in the next fiscal year:
Resolution
Ordinary General
Meeting of Shareholders
held on 29 June 2017¥11,914 million¥27.0031 March 201730 June 2017

Total amount of cash dividends
Cash dividends per share
Record date
Effective date

NOTE 16: Stock option plans
The Company adopts stock option plan by using subscription rights to shares.
The plans were adopted at the Ordinary General Meetings of Shareholders and meetings of the Board of Directors held on 28
June 2012, 27 June 2013 and 27 June 2014 based on the Companies Act.
The details of the plans were as follows:
The plan adopted at
28 June 2012

The plan adopted at
27 June 2013

The plan adopted at
27 June 2014

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

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

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

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

92,000 of Common stock of
the Company

49,800 of Common stock of
the Company

32,400 of Common stock of
the Company

Adoption date

20 July 201219 July 201322 July 2014

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

Period during which
subscription rights toshares can be exercised

From 21 July 2012 to 20 July
2042

From 20 July 2013 to 19 July
2043

From 23 July 2014 to 22 July
2044

Number of shares which
subscription rights toshares have not exercised

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

48 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

NOTE 17: Contingent liabilities
As of 31 March 2017 and 2016, the Company and some of consolidated subsidiaries had the contingent liabilities as follows:
Millions of yen

2016

2017
Guarantee of indebtedness of affiliates and others..........

¥1,427¥2,051NOTE 18: Segment Information
1. Outline of reportable segments
The reportable segments of the Company are the components of the Company business for which discrete financial information is available, and whose operating results are regularly reviewed by our decision-making body such as Board of Directors
to make decisions about resources to be allocated to the segments and to assess their performances.
The Group has three reportable segments of “Automobile”, “Motorcycle” and “Marine and Power products, etc.” based on theform of management organisation and nature of products and services.
Main products and services of each segment are as follows:
Segment
Automobile
Motorcycle
Marine and Power products, etc.

Main products and services
Minivehicles, Sub-compact vehicles, Standard-sized vehicles
Motorcycles, All-terrain vehicles
Outboard motors, Engines for snowmobiles, etc.,
Motorised wheelchairs, Electro senior vehicles, Houses

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

2017
Automobile

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

Motorcycle

Marine & Powerproducts, etc.

Adjustment

Consolidated¥——¥3,169,542
266,685¥2,895,619
255,060¥206,289(930)¥67,633
12,5552,205,138

204,159

46,375660,311

3,115,985

150,475
1,547
33,077

9,796
54
5,343

3,124
0
1,514

—
—
—

163,397
1,602
39,936

48,957

3,796

87

—

52,841

181,268

15,814

1,699—

198,782

Millions of yen

2016
Automobile

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

Motorcycle

Marine & Powerproducts, etc.

Adjustment

Consolidated¥——¥3,180,659
195,308¥2,878,515
192,619¥233,889(10,198)¥68,253
12,887

1,984,591

190,376

46,094

480,945

2,702,008

158,116
1,723
292

7,992
184
30

2,207
79
—

—
—
—

168,315
1,988
322

42,193

3,990

67

—

46,250161,679

7,531

2,324

—

171,535SUZUKI MOTOR CORPORATION 49

Consolidated Financial Statements(Reference information)
As reference information, operating results by geographical areas were as follows:(a) The amount of net sales, operating income or loss based on location of the Company and its consolidated subsidiaries
Millions of yen

2017
Japan

Europe

Asia

Other
areas

Eliminations

Consolidated¥141,721¥¥3,169,542

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

¥1,293,486¥344,591¥1,389,743—

565,322

213,651

117,165546(896,685)—

1,858,809

558,242

1,506,909

142,267(896,685)

3,169,542

137,240

13,101

121,396

4,060(9,113)

266,685

Millions of yen

2016
Japan

Europe

Asia

Other
areas

Eliminations

Consolidated¥153,857¥¥3,180,659

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

¥1,301,207¥323,309¥1,402,285—

508,962

227,156

93,830542(830,491)—

1,810,169

550,465

1,496,116

154,399(830,491)

3,180,659

84,812

6,721

103,8232,431(2,481)

195,308*Notes: 1. Classification of countries or areas is based on a geographical adjacency.
2. The major countries or areas belonging to classifications other than Japan:
		 (1) Europe
Hungary, Germany, United Kingdom and France
		 (2) Asia
India, Indonesia, Thailand and Pakistan
		 (3) Other areas United States, Australia, Mexico and Colombia
3. Classification is counted based on the location of the Company and its consolidated subsidiaries.

(b) The amount of net sales based on external customers
Millions of yen

2017
Japan

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

¥1,037,546

India

Others¥1,018,813¥1,113,182

Consolidated¥3,169,542

Millions of yen

2016
Net sales........................................

50 SUZUKI MOTOR CORPORATION

Japan

India

Others¥1,047,883¥980,640¥1,152,134

Consolidated¥3,180,659

Consolidated Financial Statements

Independent Auditor’s Report
To the Board of Directors of
Suzuki Motor Corporation
We have audited the accompanying consolidated financial statements of Suzuki Motor Corporation and its subsidiaries,
which comprise the consolidated balance sheet as of 31 March 2017, and the consolidated statement of income, statement of comprehensive income, statement of changes in net assets and statement of cash flows for the year then ended,
all expressed in Japanese Yen, and a summary of significant accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in Japan, and for such internal control as management determines
is necessary to enable the preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in Japan. Those standards require that we comply
with ethical requirements and we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks
of material misstatement of the consolidated financial statements, whether due to fraud or error. In making those risk
assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating theappropriateness of accounting policies used and the reasonableness of accounting estimates made by management, as
well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the consolidated financial position of Suzuki Motor Corporation and its consolidated subsidiaries as of 31 March 2017, and the consolidated results of their operations and their cash flows for the year then ended in accordance with accounting principles
generally accepted in Japan.

Seimei Audit Corporation
Tokyo, Japan
29 June 2017

SUZUKI MOTOR CORPORATION 51

Company Outline
1. Company NameSUZUKI MOTOR CORPORATION

2. Date of Incorporation

March 1920
June
1954
October 1990

3. Head Office

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

4. Main Products

Automobiles, Motorcycles, Outboard Motors, Motorised Wheelchairs,
Electro Senior Vehicles, Industrial Equipment

5. Fiscal Year-End

31 March

6. Public Accounting Firm

Seimei Audit Corporation

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

7. Capital and Shareholders
Capital(as of 31 March, 2017)¥138,014 million

Total number of authorised shares

1,500 million

Total number of shares issued

491,000,000

Number of shareholders

26,548Stock Listing

Tokyo Stock Exchange

Securities Code7269

Ordinary General Meeting of Shareholders

June

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

Shareholders’ Register Manager

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

Number of Shares Held

Shareholding Ratio

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

31,352

7.1

Japan Trustee Services Bank, Ltd. (Trust Account)

18,106

4.1

Tokio Marine & Nichido Fire Insurance Co., Ltd.

17,961

4.1

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

16,000

3.6

The Shizuoka Bank, Ltd.

14,500

3.3

Resona Bank, Ltd.

13,000

2.9

JP Morgan Chase Bank 380055

9,697

2.2

(Thousands of Shares)(%)

Sompo Japan Nipponkoa Insurance Inc.

7,761

1.8

Nippon Steel & Sumitomo Metal Corporation

7,759

1.8

Japan Trustee Services Bank, Ltd. (Trust Account5)

7,281

1.7

(Note) *1. Number of shares less than 1,000 is truncated.
*2. Percentage of Shareholding is calculated excluding treasury stock (49,717 thousand shares).

52 SUZUKI MOTOR CORPORATION

Company Outline

Suzuki Group
Consolidated subsidiaries: 136 companies (69 in domestic, 67 in overseas) Affiliates: 32 companies(1) Major Domestic Subsidiaries[Manufacturing Subsidiaries][Non-Manufacturing Subsidiaries]

Suzuki Auto Parts Mfg. Co., Ltd.
Snic Co., Ltd.
Suzuki Akita Auto Parts Mfg. Co., Ltd.
Suzuki Toyama Auto Parts Mfg. Co., Ltd.

Suzuki Transportation & Packing Co., Ltd.
Suzuki Business Co., Ltd.
Suzuki Engineering Co., Ltd.

[Marketing Subsidiaries]
54 directly managed domestic marketing companies(2) Major Overseas Subsidiaries[ASIA][EUROPE]
Germany
Spain
Italy
FranceHungaryUK
Austria
PolandSuzuki Deutschland GmbH
Suzuki Motor Iberica, S.A.U.
Suzuki Italia S.p.A.
Suzuki France S.A.S.
Magyar Suzuki Corporation Ltd.
Suzuki GB PLC
Suzuki Austria Automobil Handels G.m.b.H
Suzuki Motor Poland SP.Z.O.O.

[AMERICA]
USA
USA
CanadaMexicoColombia

Suzuki Motor of America, Inc.
Suzuki Manufacturing of America Corporation
Suzuki Canada Inc.
Suzuki Motor de Mexico S.A. DE C.V.
Suzuki Motor de Colombia S.A.

India
India
India
PakistanIndonesia
ThailandThailandPhilippines
Cambodia
China
VietnamTaiwanMyanmar

Maruti Suzuki India Ltd.
Suzuki Motorcycle India Private Limited
Suzuki Motor Gujarat Private Limited
Pak Suzuki Motor Co., Ltd.
PT. Suzuki Indomobil Motor
Thai Suzuki Motor Co., Ltd.
Suzuki Motor (Thailand) Co., Ltd.
Suzuki Philippines Inc.
Cambodia Suzuki Motor Co., Ltd.
Suzuki Motor (China) Investment Co., Ltd.
Vietnam Suzuki Corporation
Taiwan Suzuki Automobile Corporation
Suzuki (Myanmar) Motor Co., Ltd.

[OCEANIA]
Australia
New Zealand

Suzuki Australia Pty. Ltd.
Suzuki New Zealand Ltd.

[AFRICA]South Africa

Suzuki Auto South Africa (Pty.) Ltd.

Marketing Subsidiaries
43 directly managed overseas marketing companies

SUZUKI MOTOR CORPORATION 53