FINANCIAL SECTIONCONTENTS
Five-Year Summary........................................................................................ 2
Consolidated Financial Statement................................................................. 3
Consolidated Balance Sheets................................................................................ 3
Consolidated Statement of Income andConsolidated Statement of Comprehensive Income......................................... 5
Consolidated Statement of Changes in Net Assets................................................ 7
Consolidated Statement of Cash Flows................................................................. 9
Notes to Consolidated Financial Statements....................................................... 10
Independent Auditor’s Report.............................................................................. 32—1—
SUZUKI MOTOR CORPORATIONFive-Year Summary
SUZUKI MOTOR CORPORATIONCONSOLIDATED
Millions of yen(except per share amounts)

Years ended 31 March

2021

2020

2019

2018

2017

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

¥3,178,209¥3,488,433¥3,871,496¥3,757,219¥3,169,542

Profit attributable to owners ofparent ...........................................

146,421

134,222

178,759

215,730

159,956

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

301.65286.36395.26488.86362.54

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

301.61286.32395.20473.74362.48Cash dividends per share* .........

90.00

85.00

74.00

74.00

44.00

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

2,031,964

1,793,657

1,715,914

1,595,227

1,387,041

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

4,036,360

3,339,783

3,401,970

3,340,828

3,115,985

Depreciation and amortization ....

136,545

164,158

148,926

150,877

163,397

Profit per share:*Cash dividends per share of ¥85.00 for the year ended 31 March 2020 include a 100th-year-anniversary commemorative dividend of¥11.00 per share.

—2—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement
Consolidated Balance Sheets
As of 31 March 2021 and 2020

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2021

2020

¥924,392¥420,392

448,601

427,358

ASSETS
Current assets:
Cash and cash equivalents *Note 13..................................
Receivables:
Notes and accounts receivable-trade *Note 5...............
Allowance for doubtful accounts................................

(3,854)(2,570)Inventories *Note 7..............................................................

355,911355,492

Other *Note 5.......................................................................

433,741

339,049

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

2,158,793

1,539,722

Property, plant and equipment:
Land *Note 7....................................................................

317,813304,652

Buildings and structures *Note 7........................................

536,179

500,588

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

1,384,597

1,284,302

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

654,875

622,197

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

126,897

118,5713,020,363

2,830,311

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

(2,041,447)(1,910,167)

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

978,916920,144

Investment securities *Note 5.............................................

670,278

633,342

Note 5..........................................

Investments in affiliates *47,346

38,102Retirement benefit asset *Note 2 and 9..................................

4,261

—

140,922

174,320

Investments and other assets:

Deferred tax assets *Note 2 and 10.........................................

Other................................................................................

35,841

34,150Total investments and other assets................................

898,650879,916

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

¥4,036,360¥3,339,783

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

—3—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

As of 31 March 2021 and 2020

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2021

2020

Short-term borrowings *Note 5 and 7 .....................................

¥287,577¥121,082

Note 5 and 7.........

281,277

74,515

LIABILITIES AND NET ASSETS
Current liabilities:
Current portion of long-term borrowings *Current portion of bonds with share acquisitionrights *Note 5 and 6.................................................................

—

2,972

Accounts payable-trade *Note 5........................................

330,522257,996

Electronically recorded obligations-operating ..............

78,663

71,869

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

32,13822,310Accrued expenses *Note 2 and 5...........................................

228,726

207,996

254,076

315,835

Provision for product warranties *Note 2............................

Other *Note 7.......................................................................

195,480

150,926

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

1,688,462

1,225,506

Bonds with share acquisition rights *Note 5 and 6................

8,560

8,560

Note 5 and 7.....................................

193,413

197,064

Retirement benefit liability *Note 2 and 9...............................

62,081

67,206

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

358

436

Non-current liabilities:
Long-term borrowings *Deferred tax liabilities *Note 2 and 10.....................................

5,802

5,121

Other *Note 7.......................................................................

45,71742,231

Total non-current liabilities .................................................

315,932

320,619

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

2,004,395

1,546,126

Net assets:
Shareholders’ equity:
Share capital:
Common stock
Authorized: 1,500,000,000 shares Issued:
as of 31 March 2021 :491,098,300 shares
as of 31 March 2020 :491,067,800 shares ...................

138,262

138,202

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

143,400

146,490

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

1,519,826

1,414,665

Treasury shares ..............................................................

(21,027)(21,775)

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

1,780,462

1,677,583

121,133

87,455

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities .....
Deferred gains or losses on hedges .............................

(484)

(269)

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

(193,295)(255,266)

Remeasurements of defined benefit plans ...................

(20,337)(21,951)

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

(92,984)(190,032)

Share acquisition rights *Note 16........................................

115

115

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

344,371

305,990

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

2,031,964

1,793,657

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

¥4,036,360¥3,339,783—4—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)Years ended 31 March 2021 and 2020

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2021

2020

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

¥3,178,209¥3,488,433

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

2,311,592

2,514,779

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

866,617

973,654

Selling, general and administrative expenses *Note 11 and 12........

672,184

758,585

Operating profit ..................................................................

194,432

215,069

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

41,503

28,776

Interest expenses ..............................................................

(4,935)(5,555)

Share of profit of entities accounted for using equity
method ...............................................................................

Other income (expenses):

7,900

6,315

Note 3.....................................................

Impairment losses *(5,323)(565)

Gain on sale of investment securities *Note 2.......................

14,173

170

Note 4.....................................................

Loss on COVID-19 *(15,542)—

Other, net *Note 2....................................................................

8,856

1,815

Profit before taxes ..............................................................

241,064

246,027

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

50,772

48,881

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

20,86934,53771,641

83,418

169,422

162,608

Income taxes *Note 10:

Profit ...................................................................................
Profit attributable to non-controlling interests ...................

23,00028,386

Profit attributable to owners of parent ..............................

¥146,421¥134,222

Yen

Profit per share:
Primary ...............................................................................

¥301.65¥286.36

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

301.61286.32

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

90.00

85.00

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

—5—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(Consolidated Statement of Comprehensive Income)Years ended 31 March 2021 and 2020

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2021

2020

Profit ......................................................................................

¥169,422¥162,608

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

47,078(2,603)

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

(44)

(313)

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

75,167(119,454)

Remeasurements of defined benefit plans, net of tax .....

2,737(1,239)

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

927(1,308)

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

125,865(124,919)

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

295,287

37,688

Owners of parent ............................................................

243,469

34,425

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

51,817

3,263

Comprehensive income attributable to:

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

—6—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Consolidated Statement of Changes in Net Assets
Years ended 31 March 2021 and 2020

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES

Thousands ofsharesof common
stock

Share
capitalCapitalsurplusRetainedearnings

TreasurysharesTotalshareholders’equity491,049¥138,161¥143,965¥1,314,587¥(113,963)¥1,482,750

Issuance of new shares.....

19

41

41

—

—

82

Dividends of surplus..........

—

—

—

(34,144)—(34,144)

Profit attributable toowners of parent................

—

—

—

134,222—

134,222

Purchase of shares of
consolidated subsidiaries......

——(1,411)——(1,411)

Purchase of treasury shares...

—

—

—

—

(12)

(12)

Disposal of treasury shares...

—

—

3,894

—

92,201

96,096

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

—

—

—

—

—

—

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

19

41

2,524

100,078

92,188

194,832

491,068¥138,202¥146,490¥1,414,665¥(21,775)¥1,677,583

Issuance of new shares.....

31

60

60

—

—

120

Dividends of surplus..........

—

—

—

(41,261)—(41,261)

Profit attributable toowners of parent................

—

—

—

146,421—

146,421

Purchase of shares of
consolidated subsidiaries......

——(2,400)——(2,400)Purchase of treasury shares...

—

—

—

—

(1)

(1)

Disposal of treasury shares...

—

—

(749)

—

750

0

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

—

—

—

—

—

—

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

31

60(3,089)105,160

748

102,879

491,098¥138,262¥143,400¥1,519,826¥(21,027)¥1,780,462

Balance as of
31 March 2019

Balance as of
31 March 2020

Balance as of
31 March 2021

—7—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES
Balance as of
31 March 2019

Valuationdifferenceonavailablefor-salesecurities¥95,873

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Remeasurements ofdefinedbenefit plans

Total
accumulated
othercomprehensive
income¥(21,369)¥(90,260)¥115¥(219) ¥(164,544)

Shareacquisitionrights

Noncontrollinginterests

Total
net assets¥323,309 ¥1,715,914

Issuance of new shares.....

—

—

—

—

—

—

—

82

Dividends of surplus..........

—

—

—

—

—

—

—

(34,144)

Profit attributable toowners of parent................

—

—

—

—

—

—

—

134,222

Purchase of shares of
consolidated subsidiaries......

—

—

—

—

—

—

—

(1,411)

Purchase of treasury shares...

—

—

—

—

—

—

—

(12)

Disposal of treasury shares...

—

—

—

—

—

—

—

96,096

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

(8,417)(49)(90,722)(581)(99,771)—(17,318)(117,090)

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

(8,417)(49)(90,722)(581)(99,771)—(17,318)

77,742¥(21,951) ¥(190,032)¥115

Balance as of
31 March 2020

¥87,455¥(269) ¥(255,266)¥305,990 ¥1,793,657

Issuance of new shares.....

—

—

—

—

—

—

—

120

Dividends of surplus..........

—

—

—

—

—

—

—

(41,261)

Profit attributable toowners of parent................

—

—

—

—

—

—

—

146,421

Purchase of shares of
consolidated subsidiaries......

—

—

—

—

—

—

—

(2,400)Purchase of treasury shares...

—

—

—

—

—

—

—

(1)

Disposal of treasury shares...

—

—

—

—

—

—

—

0

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

33,678(215)

61,971

1,613

97,048—38,380135,428

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

33,678(215)

61,971

1,613

97,048—38,380238,307¥(484) ¥(193,295)¥(20,337)¥(92,984)¥115

Balance as of
31 March 2021

¥121,133

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

—8—
SUZUKI MOTOR CORPORATION¥344,371 ¥2,031,964

Consolidated Financial Statement

Consolidated Statement of Cash Flows
Years ended 31 March 2021 and 2020

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2021

2020

¥241,064
136,545
5,323
801(6,799)(62,750)(41,503)
4,935(7,146)(7,900)496(14,172)(5,547)
22,14518,04563,593
15,451
57,815
420,400
41,826(5,021)(41,766)
415,439¥246,027
164,158565(1,868)185(6,339)(28,776)
5,555(2,527)(6,315)(1,222)
45
1,109(29,177)(23,360)(51,727)(4,850)(54,742)
206,736
28,525(4,808)(58,921)
171,533(128,363)
97,598(561,233)
463,488(171,706)
67,231(232,985)(97,968)
93,678(682,913)
698,776(245,825)(62,736)(296,989)

153,355
285,118(80,166)(2,970)—(41,254)(11,490)41
302,633
18,912503,999
420,392¥924,392

36,35872,741(70,395)—
96,096(34,139)(19,975)
23
80,708(7,956)(52,704)
473,097¥420,392

Cash flows from operating activities
Profit before income taxes .................................................
Depreciation and amortization ..........................................
Impairment losses .............................................................
Increase (decrease) in allowance for doubtful accounts ..........
Increase (decrease) in retirement benefit liability ............
Increase (decrease) in provision for product warranties *Note 2 ..........
Interest and dividend income ...........................................
Interest expenses ..............................................................
Foreign exchange losses (gains) ......................................
Share of loss (profit) of entities accounted for using equity method .....
Loss (gain) on sale of property, plant and equipment ..............
Loss (gain) on sale of investment securities .....................
Decrease (increase) in trade receivables ..........................
Decrease (increase) in inventories .......................................
Decrease (increase) in accounts receivable-other ..........
Increase (decrease) in trade payables .............................
Increase (decrease) in accrued expenses *Note 2 .............
Other, net *Note 2 ...................................................................
Sub-total .............................................................................
Interest and dividends received .......................................
Interest 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 securities .....................................................
Proceeds from sales and redemption of securities ..........
Purchases of property, plant and equipment ...................
Other, net *Note 2 ...................................................................
Net cash provided by (used in) investing activities .........
Cash flows from financing activities
Net increase (decrease) in short-term borrowings ..........
Proceeds from long-term borrowings ...............................
Repayment of long-term borrowings ................................
Purchase of bond with share acquisition rights ...............
Proceeds from disposal of treasury shares ......................
Dividends paid ...................................................................
Dividends paid to non-controlling interests ......................
Other, 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 the beginning of period
Cash and cash equivalents at the end of period *Note 13

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

—9—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Notes to Consolidated Financial Statements
NOTE 1: Basis of presenting consolidated financial statements
The accompanying consolidated financial statements of Suzuki Motor Corporation (the “Company”), consolidated subsidiaries (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 consolidationa. Scope of consolidation and Application of the equity methods
The consolidated financial statements for the years ended 31 March 2021 and 2020 include the accounts of the Group,and the numbers of consolidated subsidiaries were 120 and 127 respectively. In addition, the numbers of investments in affiliated companies for the years ended 31 March 2021 and 2020 were 31 and 28 respectively. All significant inter-company
accounts and transactions are eliminated in consolidation. Investments in affiliated companies are accounted for using
equity method.
b. Method for amortization of goodwill and terms of amortization
The difference at the time of acquisition between the cost and underlying net equity of investments in consolidated subsidiaries (goodwill) is amortized on a straight-line basis over a period of five years after appropriate adjustments.
c. Fiscal year1) The number of consolidated subsidiaries for which the account settlement date is different from the consolidated account settlement date (31 March) is as follows.
31 December ……… 14, including Magyar Suzuki Corporation Ltd.
30 September ……… 2, including Suzuki (Myanmar) Motor Co., Ltd.
2) The above consolidated subsidiaries are consolidated based on the financial statements with the provisional settlementof accounts on the consolidated account settlement date (31 March).
(b) Allowance for doubtful accounts
In order to allow for loss from bad debts, estimated uncollectible amount based on the actual ratio of bad debt is recorded as
general allowance. With respect to specific receivable with higher default possibility, recoverable amount is estimated respectively and uncollectible amount is recorded.
(c) Allowance for investment loss
The differences between the book value and the fair value of securities and investment not quoted at an exchange are determined and recorded as reserve in order to allow for losses from these investments.
(d) Provision for product warranties
The provision is recorded into this account based on the warranty agreement, laws and past experience in order to allow for
expenses related to the maintenance service of products sold.
(e) Provision for Directors’ bonuses
In order to defray bonuses for Directors and Audit & Supervisory Board Members, estimated amount of such bonuses is recorded.
(f) Provision for Directors’ retirement benefits
The amount to be paid at the end of the fiscal year had been recorded pursuant to the Company’s regulations on the retirement allowance of Directors and Audit & Supervisory Board Members. However, the Company’s retirement benefit system
for them was abolished at the closure of the Ordinary General Meeting of Shareholders held on 29 June 2006. And it wasapproved at Ordinary General Meeting of Shareholders that reappointed Directors and Audit & Supervisory Board Members
would be paid their retirement benefit at the time of their retirement, based on their years of service. Estimated amount of such
retirement benefits is recorded at the end of the current fiscal year. Furthermore, in some of consolidated subsidiaries, theamount to be paid at the end of the year is recorded pursuant to their regulation on the retirement allowance of Directors andAudit & Supervisory Board Members.
(g) Provision for disaster
Reasonably estimated amount is recorded for anticipated loss mainly caused by relocation of plants and facilities located in
Ryuyo Region in Iwata City, Shizuoka Prefecture where massive tsunami damages caused by Tokai and Tonankai Earthquake
are anticipated.
— 10 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(h) Provision for product liabilities
The provision is recorded for product compensation related to North American market which is not covered by “Product Liability Insurance” based on the actual payments in the past periods.
(i) Provision for recycling expenses
The provision is recorded for an estimated expense related to the recycle of products of the Company based on the number of vehicles owned in the market, etc.
(j) Securities and Investment securities
The Group holds securities of listed companies, which have a risk of price fluctuations, and non-listed companies whose stock
prices are difficult to be evaluated.
If the Group judges the decline in investment value is not temporary, the Group recognizes revaluation loss based on the reasonable standard. If the stock market falls, the Group 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.
Available-for-sale securities with available fair values are stated at market value method based on the market values as of theconsolidated account settlement date (the valuation differences shall be reported as other comprehensive income, and costs
shall be calculated mainly by moving average method).
Available-for-sale securities with no available fair values are stated at cost by moving average method.
(k) Hedge accounting
The derivatives designated as “hedging instruments” by the Group are principally forward exchange contracts, interest rate
swap and cross currency interest rate swap. The related hedged items are foreign currency denominated transaction andborrowings.
Gains or losses arising from changes in fair value of the hedging instruments are deferred until the gains and losses on thehedged items or transactions are recognized.
If hedging instruments meet certain criteria, special hedge accounting is applied and these contracts are handled together
with hedged items.
The Group has a policy to utilize the above hedging instruments in order to reduce our exposure to the risks of the fluctuationof interest rate and foreign exchange. Therefore, our purchases of the hedging instruments are limited to, at maximum, theamounts of the hedged items.
The Group evaluates effectiveness of their hedging activities by reference to the accumulated gains or losses on the hedging
instruments and the related hedged items from the commencement of the hedges.
(l) Foreign currency translation
All monetary assets and liabilities denominated in foreign currencies, whether long-term or short-term, are converted into
Japanese yen at the exchange rates at the balance sheet date. Resulting gains and losses are included in profit or loss
for the period.
Assets and liabilities of the foreign subsidiaries are converted into Japanese yen at the exchange rates at the balance
sheet date.
The components of net assets are converted into Japanese yen at their historical rates. Profit and loss accounts for the
fiscal year are converted into Japanese yen by using the average exchange rate during the fiscal year. Differences inyen amounts arising from the use of different rates are presented as “Foreign currency translation adjustment” and “Noncontrolling interests” in the net assets.
(m) Inventories
Cost method 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 were 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 non-current 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. Regarding
other lease assets, remaining value is zero.

— 11 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(o) Income taxes
The provision for income taxes is computed based on the income before income taxes included in the consolidated statements of income. The asset and liability approach is adopted to recognize deferred tax assets and liabilities for the expected
future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.
In making a valuation for the recoverability of collection of deferred tax assets, the Group estimates their future taxable income
reasonably. If the estimated amounts of future taxable income decrease, deferred tax assets may decrease and income taxes
may be recorded.
Consolidated tax payment has been applied to the Company and its domestic wholly owned subsidiaries from the fiscal year
ended 31 March 2012.
(p) Retirement benefits
With respect to calculation of retirement benefit obligations, benefit formula basis method is used to attribute expected benefit
to period up to the end of this fiscal year. With regard to past service costs, they are treated as expense on a straight-line overthe certain years within the period of average length of employees’ remaining service years at the time when it occurs. Regarding the actuarial gain or loss, the amounts, prorated on a straight-line over the certain years within the period of average
length of employees’ remaining service years in each year when it occurs, are respectively treated as expenses from the nextterm 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 therefore
the revaluation 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 Group.
(q) Profit per sharePrimary profit per share is computed based on the weighted average number of shares issued during the respective years.
Fully diluted profit per share is computed assuming that all stock options are exercised. Cash dividends per share are theamounts 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 as cash equivalents.
(s) Application of the Consolidated Taxation System
The Group applies the Consolidated Taxation System.
Application of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System
The Company and some domestic consolidated subsidiaries do not apply the provisions of paragraph 44 of "Implementation Guidance on Accounting Standard for Tax Effect Accounting" (ASBJ Guidance No.28, issued on 16 February 2018), in
accordance with the treatment of paragraph 3 of “Practical Solution on the Treatment of Tax Effect Accounting for the Transition from the Consolidated Taxation System to the Group Tax Sharing System”(ASBJ Practical Solution No.39, issued on 31
March 2020), regarding the transition to the Group Aggregation System created in “Act on Partial Revision of the Income
Tax Act, etc.” (Act No.8 of 2020) and items on Non-Consolidated Tax Payment System which are reviewed in line with thetransition to the Group Aggregation System.
Therefore, the amounts of deferred tax assets and liabilities are calculated on the basis of the tax laws prior to the revision.
(t) Significant accounting estimatesa. Provision for product warranties
1) Amounts recorded in the consolidated financial statements for the current consolidated fiscal year		(Millions of yen)
Opening balance
Current payment
Provisions
Other (increase/decrease of subsidiaries, etc.)
Ending balance

FY 2021¥315,835(89,725)
30,004(2,038)¥254,076

2) Details of accounting estimates for the identified items
The Group recognizes provision for product warranties to allow for costs associated with future warranties which may
arise in the future.
Costs associated with future warranties include the cost of free repairs based on (i) the warranty and (ii) notification to
the competent authorities, etc.
— 12 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

With respect to the former of two types of costs, provisions are recognized when the products are sold. With regard
to the latter, provisions are recognized based on comprehensive and individual estimates which consider past occurrences, if such expenses are likely to be incurred and the amount can be reasonably estimated.
The amount of these provisions is calculated by estimating projected number of units and the projected cost per unit
based on information currently available, such as past sales results, repair results and experience. The amount of theseprovisions also reflects the amount expected to be recovered upon a request for compensation from the supplier. The
provision for product warranties is calculated on estimates, therefore inherently involves uncertainties. Therefore, theactual repair cost may differ from the estimate.
b. Retirement benefit asset and Retirement benefit liability
1) Amounts recorded in the consolidated financial statements for the current consolidated fiscal year
Retirement benefit asset 	  ¥4,261 million
Retirement benefit liability ¥62,081 million2) Details of accounting estimates for the identified items
The Group's retirement benefit expenses and retirement benefit obligations are calculated based on various assumptions, including the discount rate, the long-term expected rate of return on plan assets, the revaluation rate, the rate ofsalary increases and the death rate. The discount rate is determined based on the yield on long-term bonds that arehighly safe, and the long-term expected rate of return is determined based on the pension asset management policy ofeach pension plan.
A decline in long-term bond yields results in a decline in the discount rate, which will adversely affect the calculation ofretirement benefit expenses. However, under the cash balance corporate pension plan adopted by our company, therevaluation rate, which is one of the basic rates, has the effect of reducing the negative impact of the decline in the discount rate.
If the investment return on plan assets is lower than the long-term expected rate of return, it will have an adverse effecton the calculation of retirement benefit expenses. However, the effect is expected to be minor for corporate pension
funds in our company and in the Group, which are committed to stable management.
The difference between these assumptions and the actual results is expensed using the straight-line method over a
fixed number of years within the average remaining years of service of the employees when incurred.
c. Deferred tax assets
1) Amounts recorded in the consolidated financial statements for the current consolidated fiscal year
Deferred tax assets¥140,922 million
Deferred tax liabilities 	   ¥5,802 million2) Details of accounting estimates for the identified items
The recoverability of deferred tax assets is examined by whether certain or all deductible temporary differences, net
operating loss carryforwards and tax credit carryforwards have the effect of reducing future tax consequences.
In evaluating the recoverability of deferred tax assets, the Company considers the elimination of expected taxable temporary differences, the estimation of future taxable income, and tax planning.
With respect to such estimates, changes in future market trends, business activities and other assumptions relating to
the Group may affect the amounts of deferred tax assets and income taxes-deferred in and after the following fiscal
year.
(u) New accounting standards not yet adopted
a. Accounting Standard for Revenue Recognition“Accounting Standard for Revenue Recognition” (ASBJ Statement No.29, revised on 31 March 2020)“Implementation Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No.30, revised on 26 March
2021)
1) Outline
The aforementioned standard and guidance are comprehensive revenue recognition standards. Revenue is recognizedby applying the following steps:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
2) Scheduled date of application
The aforementioned standard and guidance will be applied at the start of the year ending 31 March 2022.
3) Effect of application of the accounting standards
The effect of the application of the aforementioned standards and guidance on the Group’s consolidated financial statements is under evaluation.

— 13 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statementb. Accounting Standard for Fair Value Measurement“Accounting Standard for Fair Value Measurement” (ASBJ Statement No.30, issued on 4 July 2019)“Implementation Guidance on Accounting Standard for Fair Value Measurement” (ASBJ Guidance No.31, issued on 4 July
2019)
“Accounting Standard for Measurement of Inventories” (ASBJ Statement No.9, revised on 4 July 2019)“Accounting Standard for Financial Instruments” (ASBJ Statement No.10, revised on 4 July 2019)“Implementation Guidance on Disclosures about Fair Value of Financial Instruments” (ASBJ Guidance No.19, revised on 31
March 2020)
1) Outline
In order to improve comparability with international accounting standards, "Accounting Standard for Fair Value Measurement" and "Implementation Guidance on Accounting Standard for Fair Value Measurement" were developed andrelevant guidance was established.
The Accounting Standard for Fair Value Measurement is applied to the fair value of the following items.
		 • Financial Instruments in “Accounting Standard for Financial Instruments”
		 • Inventories held for trading purposes in “Accounting Standard for Measurement of Inventories”
In addition, “Implementation Guidance on Disclosures about Fair Value of Financial Instruments” was revised to include
notes on the breakdown of each level of fair value of financial instruments.
2) Scheduled date of application
The aforementioned standard and guidance will be applied at the start of the year ending 31 March 2022.
3) Effect of application of the accounting standards
The effect of the application of the aforementioned standard and guidance on the Group’s consolidated financial statements is under evaluation.
(v) Changes in Presentationa. Consolidated Balance Sheets
Future recall expenses for which measures had already been implemented of ¥71,915 million were presented as “Accrued
expenses” in the previous consolidated fiscal year. Future recall expenses not included in “Accrued expenses” and future
warranty expenses, were presented as “Provision for product warranties” in the previous consolidated fiscal year. However,in the current fiscal year, these are presented in “Provision for product warranties” in “Current liabilities” to present the financial positions more clearly. To reflect this change in presentation, the consolidated financial statement of the previous fiscal
year has been reclassified.
As a result, “Accrued expenses” of ¥279,911 million and “Provision for product warranties” of ¥243,920 million in “Current
liabilities” in the consolidated balance sheets in the previous fiscal year are presented as “Accrued expenses” of ¥207,996
million and “Provision for product warranties” of ¥315,835 million.
b. Consolidated Statement of Income“Contribution”, which was presented separately under “Other income (expenses)” in the previous fiscal year, is included in“Other, net” in the current fiscal year due to low materiality. “Gain on sale of investment securities”, which was included in“Other, net” under “Other income (expenses)” in the previous fiscal year, is presented separately in the current fiscal year
due to the quantitative materiality. To reflect this change in presentation, the consolidated financial statement of the previous
fiscal year has been reclassified.
As a result, “Contribution” of ¥(526) million and “Other, net” of ¥2,513 million under “Other income (expenses)” in the consolidated statement of income of the previous fiscal year has been reclassified as “Gain on sale of investment securities” of¥170 million and “Other, net” of ¥1,815 million.
c. Consolidated Statement of Cash Flows
Following reclassification in the Consolidated Balance Sheets, ¥(2,815) million of “Increase (decrease) in accrued expenses”
in “Cash flows from operating activities” has been reclassified to “Increase (decrease) in provision for product warranties”.
As a result, “Increase (decrease) in provision for product warranties” of ¥(3,524) million and “Increase (decrease) in accrued expenses” of ¥(7,665) million in the consolidated statement of cash flows of the previous fiscal year are presented as“Increase (decrease) in provision for product warranties” of ¥(6,339) million and “Increase (decrease) in accrued expenses”
of ¥(4,850) million.
d. Application of Accounting Standard for Disclosure of Accounting Estimates
The Group has applied “Accounting Standard for Disclosure of Accounting Estimates” (ASBJ Statement No. 31, issued on
31 March 2020) from the financial statements at the end of the year ending 31 March 2021, and note significant accounting
estimates to the consolidated financial statements.
However, in accordance with the transitional treatment as provided in the proviso of Article 11 of the Accounting Standard
for Disclosure of Accounting Estimates, significant accounting estimates to the consolidated statements of previous fiscal
year are not noted.

— 14 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(w) Additional Information
In India, lockdown orders have been implemented excluding some areas and medical oxygen has been in shortage owing to
the spread of the new coronavirus infection. They have been affecting production and sales activity of the Group significantly.
Due to many uncertain factors, the impact on business results in the future is uncertain.

NOTE 3: Impairment losses
The Group recorded impairment losses in the following group of assets in year ended 31 March 2021.
		(Millions of yen)
Usage
Assets for rent
Idle assets

Location
Japan
Japan
Total

Classification
Land
Land

Amount¥5,24578¥5,323

The assets are grouped mainly in units of business facilities, and divided into the assets for business and for rent respectively.
With respect to the assets which are decided to be disposed and idle assets which are not expected to be used in the future,
the necessity of recording of impairment losses is judged based on individual assets.
With regard to assets for rent and idle assets, the Group has reduced the book value of the asset group whose market value
has particularly fallen to the recoverable amount and recorded impairment losses as extraordinary losses.
The recoverable amount is measured by the net realizable value or the value in use, and the land value is evaluated by thereal estate appraised value, etc.
The Group recorded impairment losses in year ended 31 March 2020.
This information is not provided due to its low materiality.

NOTE 4: Loss on COVID-19
The Group recorded loss on COVID-19 in year ended 31 March 2021.
¥15,542 million equivalent to fixed expenses related to production suspension due to lockdown in countries including India andHungary to prevent the spread of the new coronavirus pandemic was recorded as extraordinary losses.

NOTE 5: Financial Instruments(a) Status of financial instrumentsa. Policy for financial instruments
With respect to the fund management, the Group uses short-term deposits and securities, and with regard 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 speculative 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 toreduce the risks, the Group identifies credit standing of major counterparties and manages due date and receivable balanceof each counterparty in line with our rules and regulations for credit control. The Group hedges the risks of the fluctuation of
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 regard 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 swap or cross currency interest rate swap for the risks of the fluctuation of interest rate and exchange rate of some long-term borrowings.
Derivative transactions are foreign currency forward contracts to hedge the risks of the fluctuation of exchange rate related toreceivables and payables denominated in foreign currencies, interest rate swap to hedge the risks of the fluctuation of interest rate related to borrowings, and cross currency interest rate swap to hedge the risks of the fluctuation of exchange rateand interest rate related to borrowings and lending. The Group executes and manages derivatives within the actual demandin line with our rules and regulations which set out the authority to trade. In addition, in using derivatives, the Group deals withfinancial 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 a financial plan.
c. Supplement to fair values of financial instruments
The 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 indicate market risks related to the derivative transactions.
— 15 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(b) Fair values of financial instruments
Carrying amounts in the consolidated balance sheet, fair values and difference as of 31 March 2021 and 2020 were as follows. Financial instruments whose fair value cannot be reliably measured are not included in the below table. (Refer to *2)
Millions of yen
2020

2021

(1) Cash and deposits(2) Notes and accounts receivable-trade(3) Securities and Investment securities
Available-for-sale securities
Investment in entities
Total of assets(1) Accounts payable-trade(2) Short-term borrowings(3) Current portion of long-term borrowings(4) Current portion of bonds with shareacquisition rights(5) Accrued expenses*1(6) Bonds with share acquisition rights(7) Long-term borrowings
Total of liabilities
Derivatives*2
Hedge accounting is applied
Hedge accounting is not applied

Carrying
amount¥1,024,553
448,601

Fair value

Difference¥1,024,553
449,995¥—
1,393

851,467771¥2,325,393
330,522
287,577
281,277

851,467
1,125¥2,327,141
330,522
287,577
281,324——

228,726
8,560
193,413¥1,330,076
(707)
334

Carrying
amount¥485,808
427,358

Fair value

Difference¥485,808
431,231

¥—
3,872

—
730,305354
744¥1,748 ¥1,644,217—
257,996—
121,082(46)
74,515730,305619¥1,647,965
257,996
121,082
74,563—(124)¥3,747
—
—
(47)

—

2,972

2,909

63

228,726
10,751
192,663¥1,331,565—(2,191)749¥(1,488)

207,996
8,560
197,064¥870,188

207,996
8,311
196,788¥869,648

—
248
275
¥539

(707)
334

—
—

(469)
5,106

(469)
5,106

—
—

*1 Accrued expenses for FY2020 are figures after reclassification in note 2(v) “Changes in Presentation”.
*2 Assets or liabilities derived from derivatives are shown on a net basis and net liabilities are shown as ( ).

*1. Matters for methods used to measure fair values of financial instruments
Assets:(1) Cash and deposits
Since fair values of deposits are approximately equal to the book values, book values are used as fair values.
(2) Notes and accounts receivable-trade
Fair values of sales finance receivables are calculated on the discount method by the expected rate applied to newloan contract, on each receivable classified into a certain term.
Notes and accounts receivable-trades except sales finance are settled in short term and those fair values are approximately equal to the book values. Therefore, book values are used as fair values.
(3) 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 since they are settled in short term andthose fair values are approximately equal to the book values.
Liabilities:(1) Accounts payable-trade, (2) Short-term borrowings and (5) Accrued expenses
Since these are settled in short term and those fair values are approximately equal to the book values. Therefore,book values are used as fair values.
(3) Current portion of long-term borrowings and (7) Long-term borrowings
These fair values are measured by discounting. The discounting is based on the estimated interest rates on the assumption of similar new loans with total amount of principal and interest.
(6) Bonds with share acquisition rights
They are calculated based on the prices offered by financial institutions, etc.
Derivatives:
Please refer to Note 5 (d) Derivative transactions.

— 16 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement*2. Financial instruments whose fair value cannot be reliably measured.
Millions of yen

2021

2020

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

¥17,797¥17,399

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

33,023

27,958Other...............................................................

2,794

4,371

Available-for-sale securities

These fair values cannot be reliably measured since market values are unavailable and future cash flows cannot be estimated.
Therefore, they are not included in “(3) 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
2020

2021
Within1 yearCash and deposits ¥1,024,553
Notes andaccounts
receivable-trade261,536
Securities andinvestment
securities withmaturities
201,549¥1,487,639
Total

Over 1 year,
Within5 years

Over 5 years,
Within
10 yearsOver
10 years

¥—

¥—

¥—

186,719346—¥186,719

40,000¥40,346— 17 —SUZUKI MOTOR CORPORATIONOver 1 year,
Within5 years

Over 5 years,
Within
10 yearsOver
10 years¥485,808

¥—

¥—

¥—

—

258,115

168,799

443

—

—
—

118,584¥862,508—¥168,799—¥443

56,000¥56,000

Within1 year

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

2020

2021
Carrying
amountAcquisition
cost

Difference

Carrying
amountAcquisition
cost

Difference¥32,170¥46,464

Securities whose carrying amount exceeds the acquisition costs(1) Stocks...............................................

¥87,693¥166,493¥78,799¥78,634(2) Bonds................................................

—

—

—

—

—

—

(3) Other.................................................

616,676

504,448

112,228

522,817428,630

94,187

Sub-Total¥783,170¥592,142¥191,027¥601,452¥460,800¥140,651¥52,172¥64,639¥(12,466)(9,319)Securities whose carrying amount does not exceed the acquisition costs(1) Stocks...............................................

¥5,777¥6,831¥(1,053)(2) Bonds................................................

32,51440,000(7,486)

46,68056,000(3) Other.................................................

30,00430,004—30,00030,000—Sub-Total¥68,296¥76,836¥(8,539)¥128,853¥150,639¥(21,785)

Total¥851,467¥668,979¥182,487¥730,305¥611,439¥118,866

b. Available-for-sale securities soldMillions of yen

2021

2020

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

¥745,985¥847,112

Gain on sale of available-for-sale securities......................

14,173170

Loss on sale of available-for-sale securities......................

1215

c. Marketable securities impaired / Loss on valuation of securities
Year ended 31 March 2021
This information is not provided due to its low materiality.
Year ended 31 March 2020
The Group recognized impairment of ¥1,812 million on available-for-sale securities. With respect to securities with amarket value, if the market value at the end of the period has significantly declined compared to the acquisition cost,
the Group recognizes impairment to the extent deemed necessary based on recoverability. With regard to securities
without a market value, if the real price has significantly declined compared to the acquisition cost, the Group recognizes impairment to the extent deemed necessary based on recoverability.

— 18 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(d) Derivative transactions
The contract/notional amounts of derivatives which are shown in the below table do not represent the Group’s exposure tomarket risk. With respect to fair values of derivatives which are shown in the below tables, commodity transactions are valued
based on market price. Other transactions are valued based on the price offered by financial institutions.
a. Derivative transactions for which hedge accounting is not applied
Millions of yen(1) Currency-related transactions (non-market transactions)
2020

2021
Type
Foreign currency
forward contracts
Sell
USD
Buy
USD
JPY
Cross currency
option
Buy
JPY
Cross currency
swap
Pay JPY
receive EUR
Total

Contract/
notional
amountAmountdue after
one year

Fair value

Contract/
notional
amountAmountdue after
one year

Fair value

¥544

¥—

¥4

¥4

¥—

¥—

¥—

¥—

21,536
4,870

—
—

(926)
(1)

(926)
(1)

12,672
13,350

—
—

2,335
336

2,335
336

—

—

—

—

8,000

—

110

110

11,300¥38,251

11,300¥11,300

1,858
¥934

1,858
¥934

11,300¥45,322

11,300¥11,300

747¥3,529747¥3,529Gain(loss)(2) Interest and currency related transactions (non-market transactions)

Millions of yen
2020

2021
Contract/
notional
amountAmountdue after
one year

Fair value

Pay fixed
receive floating
Pay INR
receive USD¥24,015¥23,120¥(982)

Pay fixed
receive floating
Pay THB
receive USD——

Pay fixed
receive floating
Pay IDR
receive USD

11,220Total¥35,235Type

Gain(loss)

Contract/
notional
amountAmountdue after
one year

Fair value¥(982)¥20,040¥20,040

¥(98)

¥(98)

—

—

8,200

—

554

554

—

(95)

(95)

—

—

—

—

¥23,120¥(1,078)¥(1,078)¥28,240¥20,040

¥456

¥456

Gain
(loss)

Gain(loss)

Cross currency
Interest rate swap

— 19 —SUZUKI MOTOR CORPORATION

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

Millions of yen
2020

2021
Type

Contract/
notional
amountAmountdue after
one year

Fair value

Gain(loss)

Contract/
notional
amountAmountdue after
one year

Fair value

Gain(loss)

Commodity
futures contract
Buy
Total

¥1,118

¥—

¥478

¥478

¥13,538¥—¥1,120¥1,120¥1,118

¥—

¥478

¥478

¥13,538¥—¥1,120¥1,120b. Derivative transactions for which hedge accounting is applied
Millions of yen(1) Currency-related transactions
2021
Type
Contract/
Amount due
Contract/
Fair value
notional amount after one year
notional amountForeign currency forward contracts (Principle hedge accounting)Sell (Principal hedged item: Accounts receivable-trade)
USD¥3,864¥—¥(104)¥6,534EUR
13,523—(183)
11,599
CAD
—
—
—
661
AUD
—
—
—
1,109
NZD
147
—
1
—
GBP
67
—
(2)
2,358
CNY
287
—
(1)
135
PLN
—
—
—
462
ZAR
—
—
—
375
Foreign currency forward contracts (Special hedge accounting)Sell (Principal hedged item: Accounts receivable-trade)
USD
4,952
—
*
10,197
EUR
27,838—*12,609
CAD
63
—
*
—
AUD
1,161
—
*
324
NZD
803
—
*
328
GBP
8,434
—
*
12,678
MXN
2,759
—
*
8,240
PLN
1,846
—
*
3,054
CNY
95
—
*
153
ZAR
481
—
*
783
Total
¥66,326¥—¥(291)¥71,6062020
Amount due
after one year

Fair value

¥—
—
—
—
—
—
—
—
—

¥(199)
139
59
107
—
105
1
64
29

—
—
—
—
—
—
—
—
—
—
¥—

*
*
*
*
*
*
*
*
*
*
¥308

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

— 20 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(2) Interest and currency related transactions

Millions of yen

2021
Principal
Type
Contract/
Amountduehedged item
notional amount after one year
Interest rate swap (Special hedge accounting)
Pay fixed
Long-term¥12,500¥—
receive floating borrowings
Cross currency interest rate swap (Principle hedge accounting)
Pay fixed
receive floating Long-term
23,6198,303
Pay IDR
borrowings
receive USD
Cross currency interest rate swap (Special hedge accounting)
Pay fixed
receive floating Long-term
58,00010,000Pay JPY
borrowings
receive USD
Total¥94,119¥18,303

Fair value

2020
Contract/
Amount due
notional amount after one year*

¥12,500¥12,500*(416)

28,566

16,923(777)*

69,17258,000*¥(416)¥110,238¥87,423¥(777)* Since these transactions are handled together with hedged items, their fair values are included in that of hedged items.

— 21 —SUZUKI MOTOR CORPORATION

Fair value

Consolidated Financial Statement

NOTE 6: Bonds with share acquisition rights(1) Name of the bond(2) Total issue amount(3) Issue price(4) Offer price(5) Balance as of 31 March 2021
(Millions of yen)
(6) Coupon(7) Closing and issue date(8) Redemption price(9) Redemption at maturity,
Early redemption and Cancellationby acquisition(10) Matters concerning the bonds withshare acquisition rights
i. Type of share to be issued upon exercise of share acquisition rights
ii. Total number of share acquisitionrightsiii. Conversion priceiv. Exercise period andSupplementary conditions

v. Asset and amount to be paid upon
exercise of share acquisition rights
vi. Share capital and capital surplus
increased in case the stocks areissued by exercising shareacquisition rights

vii. 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 2023
100 billion yen plus the aggregate principal amount of the bonds in respect of replacement certificates of thebonds with share acquisition rights
100.0% of principal amount
102.5% of principal amount
8,560
Zero
1 April 2016
100% of principal amount
31 March 2023 by 100% of principal amount
Early redemption and cancellation by acquisition of the bonds under certain circumstances are specified in the
Information Memorandum.

Common stock of the Company
10,000 units plus the units of the aggregate principal amount of the bonds in respect of replacement certificatesof the bonds with share acquisition rights divided by ¥10 million
4,001.7 yen (please refer to vii.)
From 15 April 2016 to 17 March 2023
[Automatic-acquisition-upon-exercise clause(subject to the maximum number of shares to be delivered)]
Exercising by 31 December 2022
[One-time acquisition clause (subject to the maximum number of shares to be delivered)]
Giving notice from 31 March 2022 to 16 December 2022
[Contingent conversion mechanism (130%)]
Until 31 December 2022
The bonds in respect of the share acquisition rights shall be contributed upon exercising of each share acquisitionright, and the price of the bonds shall be equal to the principal amount of the bonds.
The amount of share capital increased in case the stocks are issued by exercising share acquisition rights shall behalf of the maximum increase of share capital and etc., calculated in accordance with Article 17 of the ‘‘Company
Calculation Ordinance’’, and any amount less than one yen arising from such calculation shall be rounded up.
The increase in capital surplus shall be obtained by subtracting the share capital increased from the maximum
increase of share capital and etc.
The dividend of fiscal year end retained earnings was approved as 53 yen per shareand the annual dividend was determined as 90 yen per share during the Ordinary General Meeting of Shareholders held on 25 June 2021.
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 2023 have been adjusted to 3,960.0 yen from 4,001.7 yen
retroactively since 1 April 2021 in accordance with the clause of Adjustments of 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 the Group’s midterm management plan and for strengthening its competitive position.

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

2020

2021
Short-term borrowings and Current portion of
long-term borrowings.............................................................

¥568,855

Lease obligations due within one year..................................

20

18¥568,876¥195,616— 22 —SUZUKI MOTOR CORPORATION¥195,598

Consolidated Financial Statement

Long-term debts were as follows:
Millions of yen

Long-term borrowings maturing through 2025.....................

2021

2020

¥193,413¥197,064

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

35

10

Other interest-bearing debts..................................................

16,641

14,463¥210,090¥211,538

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 2021 were as follows:Year ending 31 MarchMillions of yen

2023........................................................................................

¥73,9632024........................................................................................

34,5362025........................................................................................

79,947

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

5,000¥193,448

Assets pledged as collateral were as follows:
Millions of yen

2020

2021
Merchandise and finished goods..........................................

¥—

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

¥14,698

447

371

¥447

¥15,070

Secured liabilities were as follows:
Millions of yen

2020

2021
Short-term borrowings............................................................

¥—

Other (non-current liabilities) .................................................

¥10,722

284

243

¥284

¥10,965

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

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

2021

2020

¥300,000¥300,000

Actual loan balance................................................................
Balance——¥300,000¥300,000— 23 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 9: Retirement 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 of retirement benefit obligation................
Service cost..........................................................................
Interest cost..........................................................................
Actuarial differences............................................................
Retirement allowance paid..................................................
Other.....................................................................................
Closing balance of retirement benefit obligation..................

2021

2020

¥188,958
10,397
1,058
1,295(8,124)
2,511¥196,096¥186,087
9,593
1,043
1,790
(8,475)(1,081)¥188,958(b) Reconciliation of pension assets from the opening balance to the closing balance
Millions of yen

2021

2020

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

¥121,751¥103,273

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

2,520

2,065

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

2,750(2,981)

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

17,27826,163Retirement allowance paid..................................................

(5,035)(6,141)Other.....................................................................................

(989)

(627)

¥138,276¥121,751

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 recognized in consolidated balance sheet
Millions of yen

2021

2020

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

¥143,532¥138,046

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

(138,276)(121,751)

5,256

16,294

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

52,56350,911

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

¥57,819¥67,206

Retirement benefit liability......................................................

¥62,081¥67,206

Retirement benefit asset........................................................

4,261

—

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

¥57,819¥67,206— 24 —SUZUKI MOTOR CORPORATION

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

2020

2021
Service cost............................................................................

¥10,397¥9,593

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

1,058

1,043

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

(2,520)(2,065)

Amortization of actuarial gains and losses............................

1,105

836

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

1,227

2,029

Other.......................................................................................

687

242

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

¥11,955¥11,680(e) Adjustment for retirement benefits (before tax effect)
Breakdown of adjustment for retirement benefits recognized was as follows:
Millions of yen

2020

2021
Past service cost....................................................................

¥1,392¥2,133

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

2,395(4,039)Total¥3,788¥(1,905)(f) Accumulated adjustment for retirement benefits (before tax effect)
Breakdown of accumulated adjustment for retirement benefits recognized was as follows:
Millions of yen

2021

2020

Unrecognized past service cost............................................

¥(13,523)¥(14,944)

Unrecognized actuarial gains and losses.............................

(15,507)(17,875)

Total¥(29,031)¥(32,819)

2021

2020

(g) Pension assets
a. Major breakdown of pension assets
Portion of major components to total pension assets was as follows:
Debt securities........................................................................

46.7%

47.2%

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

33.2%

34.4%

Other.......................................................................................

20.1%

18.4%

Total

100.0%

100.0%

b. Method to determine long-term expected rate of return on pension assets
Long-term expected rate of return on pension assets was determined by considering the current and anticipated future
portfolio of pension assets and the long-term performance of various assets that comprise pension assets.
(h) Actuarial assumptions
2021

2020

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

mainly 0.15%

mainly 0.15%

Long-term expected rate of return on pension assets.........

mainly 1.80%

mainly 1.80%

3. Defined contribution plan
Year ended 31 March 2021
Contribution to defined contribution plan by the Group was ¥355 million.
Year ended 31 March 2020
Contribution to defined contribution plan by the Group was ¥306 million.

— 25 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 10: Income taxes(a) Significant components of deferred tax assets and deferred tax liabilities were as follows:
Millions of yen

2021

2020

¥68,594¥64,156

Deferred tax assets
Impairment losses and Excess-depreciation....................
Various provisions ..............................................................

86,09581,364

Unrealized profits elimination ............................................

19,31919,123
9,402

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

7,526

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

7,674

6,170

Net operating loss carryforwards* ....................................

14,85911,729Other ...................................................................................

18,10739,546

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

222,177

231,493

Valuation allowance for net operating loss carryforwards* .......

(9,528)(8,615)

Valuation allowance for deductible temporary differences* .....

(26,554)(22,419)

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

¥186,095¥200,458

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

¥(26,003)¥(8,524)

Variance from the complete market value method of
consolidated subsidiaries .................................................

(8,090)(8,090)

Deferred tax liabilities

Reserve for advanced depreciation of non-current assets...

(3,927)(3,940)Prepaid pension costs...........................................................

(1,540)—

Other....................................................................................

(11,412)(10,703)

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

(50,974)(31,258)

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

¥135,120¥169,199*The amount of net operating loss carryforwards and those deferred tax assets by due date were as follows:
Millions of yen

2021

2022

2023

2024

2025

2026

Thereafter

Total

Net operating loss
carryforwards (a)

434

25

1,480

2,843

2,881

7,194

14,859Valuation
allowance

(434)

(25)

(807)

(1,716)(2,881)(3,662)(9,528)Deferred tax
assets

—

—

672

1,126

—

3,532

5,331

(a) Net operating loss carryforwards are calculated by multiplying the statutory tax rate.
Millions of yen

2020

2021

2022

2023

2024

2025

Thereafter

Total

Net operating loss
carryforwards (b)

2,029

388

22

703

1,317

7,268

11,729Valuation
allowance(1,809)

(388)

(22)

(703)

(1,317)(4,374)(8,615)

Deferred tax
assets

220

—

—

—

—

2,893

3,114

(b) Net operating loss carryforwards are calculated by multiplying the statutory tax rate.

— 26 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(b) Breakdown of the differences between the statutory tax rate and the effective tax rate
2020

2021
Statutory tax rate ....................................................................

—

29.86 %

Different tax rates applied to consolidated subsidiaries...

—(1.08)%Tax credit.............................................................................

—(1.80)%

Retained earnings in subsidiaries etc...............................

—

4.73 %

Other....................................................................................

—

2.20 %

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

—

33.91 %

Notes to FY2021 are omitted because the difference between the statutory tax rate and the effective tax rate is 5/100 or lessof the statutory tax rate.

NOTE 11: Selling, general and administrative expenses
Main items of selling, general and administrative expenses were as follows:
Millions of yen

2021

2020

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

¥98,028¥101,775

Advertising expenses.............................................................

55,19271,004

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

67,75780,600Wages and salaries................................................................

90,701

93,395148,080

Research and development expenses.................................

146,221

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

804(1,950)

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

29,44054,110Retirement benefit expenses.................................................

5,429

4,912

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

(254)

661

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

2,716

(593)

NOTE 12: Research and development expenses
Research and development expenses included in selling, general and administrative expenses were as follows:

Millions of yen

Research and development expenses.................................

2021

2020

¥146,221¥148,080

NOTE 13: Cash and cash equivalents
Cash and cash equivalents were as follows:
Millions of yen

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

2021

2020

¥1,024,553¥485,808

Securities................................................................................

201,549

118,584

Sub-total..................................................................................

1,226,103

604,393

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

(100,160)(65,416)

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

(201,549)(118,584)

Cash and cash equivalents...................................................

¥924,392¥420,392— 27 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 14: Other comprehensive income
Millions of yen

2020

2021
Valuation difference on available-for-sale securities
Gain (loss) arising during the period.................................

¥100,990¥4,521

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

(41,240)(12,258)

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

59,750(7,737)

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

(12,672)

5,134

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

¥47,078¥(2,603)

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

¥(319)¥756

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

191(1,122)

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

(127)

(365)

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

82

52

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

¥(44)¥(313)¥75,222¥(119,457)

Foreign currency translation adjustment
Gain (loss) arising during the period.................................
Reclassification adjustments..............................................

(54)

3

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

¥75,167¥(119,454)¥(4,784)

Remeasurements of defined benefit plans
Gain (loss) arising during the period.................................

¥1,544

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

2,243

2,878

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

3,788(1,905)

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

(1,051)

665

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

¥2,737¥(1,239)

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

¥927¥(1,308)

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

¥125,865¥(124,919)

NOTE 15: Cash dividends
Resolutions

Total amount of cash dividends
Cash dividends per share
Record date
Effective dateOrdinary General
Meeting of Shareholders
held on 26 June 2020
¥23,299 million¥48.0031 March 2020
29 June 2020

Meeting of theBoard of Directors
held on 5 November 2020
¥17,961 million¥37.0030 September 2020
30 November 2020

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

Total amount of cash dividends
Cash dividends per share
Record date
Effective dateOrdinary General
Meeting of Shareholders
held on 25 June 2021
¥25,738 million¥53.0031 March 2021
28 June 2021
— 28 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 16: Stock option plans
The Company adopts stock option plan by using share acquisition rights.
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 shareacquisition rights

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 of shareacquisition rights(1) A person who is allocated share acquisition rights shall be able to exercise share acquisitionrights 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 share acquisition rights was dead, the person’s heir shall be able toexercise the rights.

Period during which shareacquisition rights 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 whichshare acquisition rights
have not exercised

35,00018,00010,600Category and number ofpeople to whom stock
options are granted

NOTE 17: Contingent liabilities
As of 31 March 2021 and 2020, the Company and some of consolidated subsidiaries had the contingent liabilities as follows:
Millions of yen

2021
Guarantee of indebtedness of overseas sales
companies and other....................................................

¥1,920— 29 —SUZUKI MOTOR CORPORATION

2020¥1,052

Consolidated Financial Statement

NOTE 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 segment and to assess its performance.
The Company has three reportable segments of “Automobile business”, “Motorcycle business” and “Marine business, etc.”
based on the form of management organization and nature of products and services.
Main products and services of each segment are as follows:
Segment

Main products and services

Automobile business

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

Motorcycle business

Motorcycles, All-terrain vehicles

Marine business, etc.

Outboard motors, Motorized wheelchairs, Solar power generation, Real estate

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

2021
Automobile
business

Net sales:
Net sales to external customers......
Segment profit..............................
Segment assets............................
Other items:
Depreciation.....................................
Impairment losses............................
Investments in entities accounted
for using equity method...................
Increase in property, plant andequipment and intangible assets....

Motorcycle
business

Marinebusiness, etc.

Total

Adjustment

Consolidated¥2,876,601
172,066¥206,530
2,575¥95,077
19,791¥3,178,209
194,432¥——¥3,178,209
194,432

2,823,212

219,262

73,593

3,116,067

920,292

4,036,360

124,937
5,277

8,619
25

2,987
20

136,545
5,323——

136,545
5,323

38,477

8,395

472

47,346—47,346

160,762

8,350

1,833

170,947—

170,947

Millions of yen

2020
Automobile
business

Net sales:
Net sales to external customers......
Segment profit..............................
Segment assets............................
Other items:
Depreciation.....................................
Amortization of goodwill...................
Impairment losses............................
Investments in entities accounted
for using equity method...................
Increase in property, plant andequipment and intangible assets....

Motorcycle
business

Marinebusiness, etc.

Total

Adjustment

Consolidated¥3,157,434
197,100¥242,561
693¥88,437
17,275¥3,488,433
215,069¥——¥3,488,433
215,069

2,556,172

219,044

63,791

2,839,008

500,775

3,339,783

146,85888
540

13,729
46
14

3,570
0
10

164,158
135
565

—
—
—

164,158
135
565

32,956

4,708

438

38,102—

38,102220,098

13,753

2,598

236,450—

236,450— 30 —SUZUKI MOTOR CORPORATION

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

2021
Net sales...............................................

Japan

India

¥1,174,034¥966,721

Other

Consolidated¥1,037,453¥3,178,209

Millions of yen

2020
Japan

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

India¥1,179,523

Other¥1,121,164

Consolidated¥1,187,746¥3,488,433(Supplementary information)
The amount of net sales, operating profit or loss based on location of the Group
Millions of yen

2021
Japan

EuropeOther
regions

Asia

Total

Eliminations Consolidated

Net sales
Net sales to external customers....
Internal net sales or transfer
among geographical regions........
Total
Operating profit.................................

¥1,337,708 ¥352,541 ¥1,307,977¥179,982 ¥3,178,209

562,817

145,984

87,319375

1,900,526

498,526

1,395,297

180,357

118,373

10,823

55,9578,641¥ — ¥3,178,209

796,498 (796,498)—

3,974,707 (796,498) 3,178,209
193,796636

194,432

Millions of yen

2020
Japan

EuropeAsia

Otherregions

Total

Eliminations Consolidated

Net sales
Net sales to external customers....
Internal net sales or transfer
among geographical regions........
Total
Operating profit.................................

¥1,369,326 ¥392,007 ¥1,541,745¥185,354 ¥3,488,433

617,406

175,406

109,631266

1,986,733

567,414

1,651,377

185,621

123,188

17,67862,671

6,531*Notes: 1. Classification of countries or regions is based on a geographical adjacency.
2. The major countries or regions belonging to classifications other than Japan:
		 (1) Europe..............Hungary, Germany, United Kingdom and France
		 (2) Asia...................India, Pakistan, Indonesia and Thailand
		 (3) Other regions....United States, Australia, Mexico, Colombia and South Africa— 31 —SUZUKI MOTOR CORPORATION¥ — ¥3,488,433

902,712 (902,712)—

4,391,145 (902,712) 3,488,433
210,069

4,999

215,069

Consolidated Financial Statement

Independent Auditor’s Report
To the Board of Directors of
Suzuki Motor Corporation
OpinionWe have audited the consolidated financial statements of Suzuki Motor Corporation and its consolidated subsidiaries (theGroup), which comprise the consolidated balance sheet as of 31 March 2021, and the consolidated statement of income,consolidated statement of comprehensive income, consolidated statement of changes in net assets and consolidated
statement of cash flows for the year then ended, all expressed in Japanese Yen, and notes to consolidated financial statements, including a summary of significant accounting policies.
In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the consolidated financial position of the Group as of 31 March 2021, and its consolidated financial performance and its consolidated
cash flows for the year then ended in accordance with accounting principles generally accepted in Japan.
Basis for Opinion
We conducted our audit in accordance with auditing standards generally accepted in Japan.
Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements section of our report.
We are independent of the Group in accordance with the ethical requirements that are relevant to our audit of the consolidated financial statements in Japan, and we have fulfilled our other ethical responsibilities in accordance with theserequirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key Audit Matters
In the audit of the consolidated financial statements for the current year, the Key Audit Matters are those that the auditor,
as a professional expert, determined to be particularly important. The Key Audit Matters are those that have been addressed in the process of conducting the audit of the entire consolidated financial statements and in the formation of theaudit opinion. We do not express our opinion on these matters individually.
1. Renewal of the Company’s accounting system
Key audit matter description

How our audit addressed the key audit matter

The Company undertook a complete renewal of its accounting system with the aim of improving the efficiency ofaccounting operations and centralizing the managementof accounting information implementing the new accounting system in the current consolidated fiscal year.

We conducted the following audit procedures with theuse of members with expertise in the IT area in order toexamine whether the new accounting system has been
implemented properly.

• Assess the operating effectiveness of internal controls
over management transition test for the implementation
We identified the risks that incorrect financial accountingof the new accounting system.
figures could be repeatedly and continuously processed
and reported unless data migration from the old system tothe new system and reconfiguration of various masters in • Performed procedures to verify that the data have been
completely and accurately migrated.
the new system had been processed properly.
From the aforementioned reasons, we determined that the • Performed procedures to verify that master data including the chart of accounts have been reconfigured corimplementation of the new accounting system shall be
rectly.
treated as one of our "Key Audit Matters".
• Assess the effect of the implementation of the new accounting system to the IT general control assessment.

— 32 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

2. Liabilities for individual repair costs based on notifications to competent authorities
Key audit matter description

How our audit addressed the key audit matter

As of March 31, 2021, the Group recorded a provision
for product warranties of ¥254,076 million in the consolidated balance sheet to allow for expenses related to after
services of products sold. The related disclosures are in“Notes to Consolidated Financial Statements”, “NOTE 2:
Summary of significant accounting policies” (d) and (t)-a.
The provision for product warranties includes liabilities
related to individual repair costs based on notifications tocompetent authorities.

In auditing the individual estimates of liabilities for individual repair costs based on notifications to competentauthorities, we performed the following audit procedures.

• Assess the operating effectiveness of internal controls
over liabilities related to individual repair costs based on
notifications to competent authorities, including the internal controls related to the determination of significant
assumptions and underlying data used in estimating the
projected number of units to be repaired as well as the
projected repair cost per unit.
Liabilities related to individual repair costs based on notifications to competent authorities are recorded based on
estimates of comprehensive or individual repair costs for • Examine that the data used to determine the projected
number of units to be repaired and the projected repair
products which may arise in the future.
cost per unit are supported by evidences and its consistency with historical repair data.
Individual repair costs for products which may arise in the
future are estimated based on historical repair costs, projected number of vehicles to be repaired and estimated • Examine the completeness of the individual estimatesof liabilities for individual repair costs based on notificarepair cost per vehicle, which are reviewed periodicallytions to competent authorities through reviewing theand modified as necessary.
consistency with minutes of meetings and approval
documents related to repair costs as well as information
Since this estimate of repair costs involves significant
on recalls and defects published by competent authorijudgement by management, a high degree of auditor
ties.
judgements are required in evaluating the estimate.
From the aforementioned reasons, we determined that theindividual estimates of liabilities for individual repair costs
based on notifications to competent authorities is specifically important in the audit of the consolidated financial
statements of the current fiscal year and therefore is oneof our "Key Audit Matters".

Responsibilities of Management and Audit & Supervisory Board Members and Audit & Supervisory Board for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of the consolidated financial statements in accordance with accounting principles generally accepted in Japan. The responsibility includes establishment and management of internal control that the management determines to require in order to enable the preparation of consolidated
financial statements that are free from material misstatement due to fraud or errors.
In preparing the consolidated financial statements, management is responsible for assessing the Group’s ability to continue as a going concern and disclosing, as applicable, matters related to going concern in accordance with accounting
principles generally accepted in Japan.
Audit & Supervisory Board members and the Audit & Supervisory Board are responsible for overseeing the Directors'
execution of duties relating to the design and operating effectiveness of the controls over the Group's financial reporting
process.
Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial statements as a whole arefree from material misstatement, due to fraud or error, and to issue an auditor’s report that includes our opinion. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of these financial statements.
As part of an audit in accordance with auditing standards generally accepted in Japan, we exercise professional judgement and maintain professional skepticism throughout the audit. We also:— 33 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement• Identify and assess the risks of material misstatement of the consolidated financial statements due to fraud or error,
and design, and perform audit procedures responsive to those risks. The procedures selected depend on the auditor's
judgement. In addition, we obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate
in the circumstances, while the purpose of the consolidated financial statement audit is not to express an opinion on theeffectiveness of the Group’s internal control.
• Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related
disclosures made by management.
• Conclude on the appropriateness of management’s use of the going concern basis of accounting and based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material uncertainty exists, weare required to draw attention in our auditor’s report to the related disclosures in the consolidated financial statements
or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained
up to the date of our auditor’s report. However, future events or conditions may cause the Group to cease to continue asa going concern.
• Evaluate whether the presentation and disclosures of the consolidated financial statements are in accordance with accounting principles generally accepted in Japan, the overall presentation, structure and content of the consolidated
financial statements, including the disclosures, and whether the consolidated financial statements represent the underlying transactions and events in a manner that achieves fair presentation.
• Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business activities
within the Group to express an opinion on the consolidated financial statements. We are responsible for the direction,
supervision and performance of the Group audit. We remain solely responsible for our audit opinion.
We communicate with Audit & Supervisory Board members and Audit & Supervisory Board regarding the planned scope
and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit and other matters.
We also provide Audit & Supervisory Board members and the Audit & Supervisory Board with a statement that we havecomplied with relevant ethical requirements regarding independence, and to communicate with them all relationships andother matters that may reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated with Audit & Supervisory Board Members and Audit & Supervisory Board, we determine
those matters that were of most significance in the audit of the consolidated financial statements of the current period andare therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes
public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be
communicated in our report because the adverse consequences of doing so would reasonably be expected to outweighthe public interest benefits of such communication.

— 34 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Interest Required to Be Disclosed by the Certified Public Accountants Act of Japan
Our firm and its designated engagement partners do not have any interest in the Group which is required to be disclosed
pursuant to the provisions of the Certified Public Accountants Act of Japan.

Satoru Imamura
Designated Engagement Partner
Certified Public Accountant

Koji Nishikawa
Designated Engagement Partner
Certified Public Accountant

Takashi Imamura
Designated Engagement Partner
Certified Public Accountant
Seimei Audit Corporation
Tokyo, Japan
25 June 2021

— 35 —SUZUKI MOTOR CORPORATION