ANNUAL REPORT2017

Contents
Mission Statement___________________________________________________________ 1
A Message from the Management_____________________________________________ 2
New Mid-Term Management Plan SUZUKI NEXT 100______________________________ 4
Financial Highlights__________________________________________________________ 6
Year in Review_______________________________________________________________ 8
Automobiles_____________________________________________________________ 8
Motorcycles_____________________________________________________________ 10
Marine Products_________________________________________________________ 12
Environmental Initiatives_________________________________________________ 13
Topics_____________________________________________________________________ 14
Directors, Auditors and Officers______________________________________________ 18
Corporate Governance Issues________________________________________________ 19
Risks in Operations_________________________________________________________ 20
The Status of the Corporate Group____________________________________________ 22
Financial Section___________________________________________________________ 24
Company Outline___________________________________________________________ 52

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

A Message from the Management

A Message from the Management
Thank you very much for your continued support.
We would like to begin by addressing the improper activities inregards to fuel consumption and gas emission testing of the Company’s automobiles last year, which caused unfortunate worry
among our stakeholders. As a result of testing by the Ministry ofLand, Infrastructure, Transport and Tourism (MLIT), it was confirmedthat there were no problems with the Company’s original values forfuel consumption (fuel consumption values listed in catalogues)
and original values for gas emission. The Company has taken swift
action to implement reliable measures for preventing recurrenceof the incident. All executives and employees of the Company willcontinue to implement thorough compliance in order to maintain
trust and meet the expectations of shareholders.

Management results of FY2016
With respect to the management environment of the Group for
FY2016, the economy is recovering moderately as a whole. On theother hand, there are concerns about the influence of the policyof US administration, uncertainties about trend of Europe including
the issue of the UK leaving the EU, prospects for the economy ofdeveloping countries, and others. In India, an important market for
the Group, the economy is expanding mainly owing to increase ofdomestic consumption. Also in Japan, the economy is recoveringmoderately on the back of various measures introduced by the government.
Under these circumstances, the consolidated net sales of the fiscal
year (April 2016 to March 2017) decreased by ¥11.2 billion (0.3%) to¥3,169.5 billion compared to the previous fiscal year. The Japanese
domestic net sales decreased by ¥10.4 billion (1.0%) to ¥1,037.5
billion year-on-year mainly owing to decrease in mini vehicle andOEM sales, despite increase in compact vehicle sales. The overseas
net sales were flat on the year at ¥2,132.0 billion mainly owing todecrease in automobile sales in Indonesia and Pakistan, and theimpact of the exchange rate, despite increase in automobile sales inareas including India and Europe.
In terms of the consolidated income, although there were impactof the exchange rate, the operating income increased by ¥71.4
billion (36.5%) to ¥266.7 billion year-on-year mainly owing to increase in automobile sales in India and Europe. The net income attributable to owners of the parent increased by ¥43.3 billion (37.1%)
to ¥160.0 billion year-on-year partly owing to increase in gain on
sales of investment securities, in addition to increase in the ordinary income, despite accounting impairment loss of ¥39.9 billion
for businesses including the automobile business in Thailand as
extraordinary losses.

2 SUZUKI MOTOR CORPORATION

Basic policies for profit distribution
Under the New Mid-Term Management Plan (from FY2015 to
FY2019) SUZUKI NEXT 100, the Company plans active investments
for future growth, which includes accumulated capital investmentof 1 trillion yen and research and development expenses of 200
billion yen for FY2019. At the moment, the Company prioritises investment for growth centred in India, and set the dividend payout
ratio target to 15% or more.
Also, partly because of large acquisition of treasury shares in theprevious fiscal year, shareholder’s equity ratio declined to 35.4% at
the end of the previous fiscal year, and the improvement of shareholder’s equity ratio is becoming an urgent issue. Meanwhile, theCompany also recognises that capital efficiency and shareholder
return are significant management issue as well.
Taking the above-mentioned condition into consideration, as withthe previous fiscal year, the Company would utilise the gain on
sales of investment securities for investment for growth and improvement of shareholder’s equity ratio, and made the year-end
dividends based on the net income attributable to owners of theparent excluding the gain on sales of investment securities, whichwas ¥27.00 per share, up by ¥10.00 per share from the previous
fiscal year.
As a result, the annual dividends including interim dividends was¥44.00 per share and up by ¥12.00 per share from the previous
fiscal year. Dividend payout ratio based on the net income attributable to shareholders of the parent excluding the gain on salesof investment securities is 15.2%.

Outstanding issues
The Group has established the New Mid-Term Management PlanSUZUKI NEXT 100 - Strengthening of its management base toward
the 100th anniversary of foundation and the next 100 years -, afive-year plan from 2015.
FY2016 marked the second year of the New Mid-Term Management Plan. The Company is making steady progress for achieving
the 2019 fiscal year goals of 3,700 billion yen and maintaining an
operating income margin of 7%.
Also, due to changes in the environment surrounding automobiles
and to increasingly severe market competition, it has become
necessary to focus on R&D for environmental performance andsafety, and on growth investment with a focus on India. Amidst
such conditions, the Company is addressing the following issues
in order to achieve the New Mid-Term Management Plan.

A Message from the Managementn Compliance
In response to the discovery of improper activities that were inconsistent with national regulations with regards to fuel consumption and gas emission testing of the Company’s automobiles, theCompany immediately implemented measures which included
strengthening the legal education and compliance training, clarifying the responsibility of certification duties, strengthening internal
check systems, etc. The entire Company shall continue to work tostrengthen compliance.
n Quality
The Company will make the customers’ safety and security its toppriority, develop and produce high-quality products which the customers can use securely, and provide after services. In the future,
while accurately ascertaining the quality needs of customers, theCompany will maintain a high level of quality awareness in all departments and will continue to make the utmost effort to ensure
the safety and security of customers.
n Products and R&D
Today, all corporations are expected to consider the environment.
In the automotive industry, there is the need for environmental
technology, low fuel consumption technology, etc. The environment surrounding automobiles continues to change. In addition
to safety technology, it is now necessary to implement IT technology, etc. The Group will continue to provide products which arerequired by customers and which can be used safely and securely.
n Production
Domestically, the Group shall work to obtain personnel necessary
for achieving production plans.
Globally, while strengthening education, installation of safety facilities, etc. necessary for achieving “Safety First” factories, theGroup shall work to improve product quality and to construct an
optimal global production system.
n Automobile BusinessIn the domestic automobile market, the Company succeeded inselling 100,000 standard and small vehicles for the first time ever.
In response to strong demand in India, new Gujarat Plant began
operation.
Furthermore, we are planning the constructing of Gujarat Plant No.
2 and the Engine & Transmission Plant with the aim of beginning
operation in 2019. In addition to further strengthening the domestic automobile business and Indian automobile business which
are the two pillars of the Group, we will strengthen our automobile
business in regions such as ASEAN, Europe, and Pakistan. This will
enable us to diversify our income sources and to carry forward
the ALL GRIP structure reformation.

n Motorcycle Business
While focussing on the 150cc and up, backbone, and sport categories, the Group will strengthen the consistency of the Suzuki
brand by ranging the series from large engine displacement motorcycles to small engine displacement motorcycles. In the fiscal
year, the Group focussed on reducing fixed expenses and reducing
costs. New models including the GSX-R1000 and GSX-R150 werereleased at the end of the year. Moving forward, in addition to promoting sales of these new models, the Group will achieve a profitable structure through management reforms.
n Outboard Motor BusinessIn addition to focussing on strengthening sales in the American
market, the Group will proceed the development of the Asian market and make “THE ULTIMATE 4-STROKE OUTBOARD” its new brandslogan and aim at creating the world top 4-STROKE outboard motors brand.
n Environment & Social Activities
In the fiscal year, the Company continued to engage in various
social service activities for environmental conservation in close
cooperation with the local community, as well as to promote oursolar energy project in order to suppress global warming and tosupport disaster affected areas.
In addition, the Company is engaged in the research promotion
and the scholarship assistance through Suzuki Foundation and Suzuki Education and Culture Foundation. In the future, the Company
shall actively address human rights issues which are becoming increasingly prevalent internationally, and shall work to address thedomestic issue of reforming work styles.
By balancing between investments for growth and strengtheningof its management base, the Group will consistently promote efforts for enhancing corporate value.
For the details of Mid-Term Management Plan SUZUKI NEXT 100,
please refer to the next page.
The Group has entered the third year of the New Mid-Term Management Plan (FY2015 to 2019) SUZUKI NEXT 100. Aiming for new
growth, Team Suzuki will respond to rapid changes in the automotive manufacturing environment and will strive to constantly create products and provide services with outstanding value.
We look forward to the continued support and encouragement of
our shareholders.

Representative Director and President
Toshihiro Suzuki

SUZUKI MOTOR CORPORATION 3

New Mid-Term Management Plan SUZUKI NEXT 100

New Mid-Term Management Plan SUZUKI NEXT 100~ Strengthening of management base toward
the 100th anniversary of foundation and the next 100 years ~Suzuki Motor Corporation has established the New Mid-Term Management Plan SUZUKI NEXT 100, a five-year plan from 2015.
The Suzuki Group will be celebrating its 100th anniversary of foundation in 2020. In order for the Group to continuously
grow for the next 100 years, Suzuki will put efforts into strengthening of management base by positioning the next five
years as the period to stabilise the foundation of management. The Group will tackle as Team Suzuki to globally develop
manufacturing base and overhaul working procedure.
Under the New Mid-Term Management Plan, the Group will unite as one to enhance corporate value and aim for sustainable growth.
Overview of the New Mid-Term Management Plan SUZUKI NEXT 100 is as per below.

Basic Policy
By returning to the origin of “Develop products of superior value by focussing on the customer” as mentioned in the first paragraph of the mission statement, Suzuki will strengthen its business base.

Strengthening of Manufacturing

Team SUZUKI
Reformation of Business Culture
Development of Human Resources

Top Priority on Quality● Safety and reliance of customers● Customer-firstis the top priority● Proposal-based challenging management● Swiftly correspond to customer’s● Development of human resources

who can take action by thinking smarter● Arrangement of environment for
motivating employees

Globalisation● Establishment of new

management structure● Strengthening of global
management

Customerfocussed

Take action with Customerfocussed mind in all aspects
in line with the spiritof the mission
statement

Stable Management Base
● Diversification of Source

voice● Making of reliable brandof Profit● Enhancement of Corporate
Value● Strengthening of Risk
Management

Creative Products● Creation of value that exceed

customer’s expectation● Offer driving pleasure, fun touse, and pride of ownership

Engineering, Production
and Purchasing● Driving Performance and Fuel Efficiency

Safety and Reliability● Evolution of manufacturing engineering● Construction of global optimum

production structure● Promotion of optimum procurement

and internal production

4 SUZUKI MOTOR CORPORATIONNew Mid-Term Management Plan SUZUKI NEXT 100

Suzuki’s Business Strategy
1. Automobile Businessn Product Strategy

n Regional Strategy

Efficient Development

Centred in Japan and India, Asia is the main region

Consolidation ofPassenger Platform
Concentration of
Development ofPetrol Engine

New development will be consolidated into three new lightweight platform of Mini,A, and B
l Inter-segment use of common functional parts through modularisation

Maintain market and employment by placing
as the base of development and production
Constantly introduce mini and compact models every yearl Minicar share of more than 30%, compact car
sales of more than 100,000 unitsl Strengthen direct sales and expansion of distributor base

l

l

l

l

Japan

Efficiently develop basic and new technologies by concentrating on 660 to 1,400cc

Other than petrol engine technologies, put efforts into technologies which also consider the needs of emerging countries such as AGS, ISG, and infotainmentl Development of human resources and making of long-term base by co-developingwith Indian engineerslDevelopmentwith Global Sight
Global Optimum
ProductionlMake Japan, India, Indonesia, Thailand, and Hungary as global production base

While still centreing on the expanding new buyers, fulfil products, sales network, and productivity to meet increasing substitute demands
l Passenger share of more than 45%
l

India

Model Introduction PlanlIntroduce 20 new models globally in five years

ASEAN

MinicarA Segment
B Segment
C Segment
SUV

EuropeConstantly introduce one model every year (five models in five years)
Expand sales by introducing six models in five yearslIntroduce three models in each segment, a total of nine models in five years

Develop Indonesia and Thailand as pillars that
follow Japan and India, to place them as the
production base for inside and outside ASEAN
Brush up advanced technologies and productcompetitiveness through corresponding to fuelefficiency restriction, safety technologies, anddesign2. Motorcycle Businessn Enhancing Earning Strength and Brand Valuel Departure from chronic deficits through selection and concentration.
l Development of products which clearly define characteristics of Suzuki (150cc and up, backbone, sport)
Main Category and Product Development

Marketing Strategy

Main Category
150cc and up Backbone Sport(Shift from low-priced to mid- to high-priced products)

High quality service

l

l

l
l
l

l

l

Improve customer satisfaction

Developed Strengthen announcement activities of events, etc.
Improve profitability
Countries Strengthen sales of parts and accessories

Return to the origin of basic performances of “Running, Cornering, and Braking”
Pursue fun-to-ride and easy-to-ride
Feedback of MotoGP technologies

Emerging
Countries

Strengthen business base
Consolidate production base in ASEAN
Improve profitability
Develop sales network of large displacement model

3. Outboard Motor Business
Product Strategyll

New Brand Slogan

Expand lineup of large four-stroke outboard motors
Introduce more than six models in five years

THE ULTIMATE
4-STROKE OUTBOARD

Regional Strategyll

Aim for the world’s best four-stroke outboard motor brand

Focus on strengthening sales in the US
Development of Asian market

Mid-Term Management Target

Mid-Term Management Target Value

Operating Income Margin
Shareholder
ReturnFY2017
Disclosed ValueFY2019Target¥3,169.5 billion¥3,400.0 billion¥3,700.0 billion

8.4%

7.1%

7.0%

ROE

15.4%

—

Dividend
payout ratio

12.1%(¥44.00 per share)

more than 15%¥131.5 billion¥150.0 billion¥200.0 billion(Total capital expenditures for five years)(¥1,000 billion)

R&D expenses

8-10%* Foreign exchange rates…¥105/US$, ¥120/Euro, ¥1.60/Indian Rupee, ¥0.80/100 Indonesian Rupiah, ¥3.00/ThaiBaht.

FY2016
ResultMotorcycle

Consolidated Net Sales

FY2016
ResultGlobal Sales Units

Automobile

As for the consolidated net sales, Suzuki will aim to promptly exceed its highest-ever marked in FY2007 (¥3,502.4 billion) by steadily
increasing.
By balancing between investments for growth and strengtheningof management base, Suzuki will consistently promote efforts forenhancing corporate value.

FY2017
Disclosed ValueFY2019TargetJapan

639,000

645,000

Europe245,000

267,000

700,000
280,000

Asia

1,870,000

1,983,000

2,200,000

Others164,000

176,000

220,000

Total

2,918,000

3,071,000

3,400,000

Japan

62,00067,00070,000Europe45,00053,00070,000

North America

32,00040,00060,0001,039,000

1,073,000

1,500,000

Asia
Others190,000

186,000

300,000

Total

1,367,000

1,419,000

2,000,000* The targets and forward-looking statements mentioned in this document are based on
currently available information and assumptions, contain risks and uncertainty and do notconstitute guarantees of future achievement.
* Please note that the future results may greatly vary by the changes of various factors.
Those factors, which may influence the future results, include economic conditions andthe trend of demand in major markets and the fluctuations of foreign exchange rates(mainly U.S. dollar/Yen rate, Euro/Yen rate, Indian Rupee/Yen rate).

SUZUKI MOTOR CORPORATION 5

Financial Highlights

Financial Highlights

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

Asia

Europe3,015,461
2,938,314
268,325

229,693

169,891

North America

Others3,180,659

3,169,542

266,329

257,585

67,002

56,115

Automobile

404,722

Marine & Power Products

3,180,659

3,169,542

68,253

67,633233,889

206,2892,878,515

2,895,619

2016

2017

3,015,461
2,938,314

63,03356,046
250,485
2,578,317

425,332

50,212372,028

398,902

Motorcycle

266,60265,97665,084

2,578,317

n Net sales by segment (Millions of yen)

230,290

95,552
286,524

1,111,900

1,214,519

1,394,720

1,392,961

985,3992,615,664

2,701,942

2,297,814

1,040,948

1,132,732

1,094,611

1,047,883

1,037,546

2014

2015

2016

2017

2013

n Operating income (Millions of yen)

2013

n Net income attributable toowners of the parent

Operating income

2014

2015

n Dividends (Yen)
Year-end dividends

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

Margin266,685

Interim dividends
Dividend payout ratio
Dividend payout ratio (excl.gain on
sales of investment securities)

159,956

17.3%
15.6%
187,747

116,660

195,308362.54

107,484

179,424

12.6%

15.2%
13.6%

12.5%

12.1%

96,862
144,564
8.4%
6.4%
5.6%

6.0%

44

80,389234.98191.606.1%

32172.6724

143.31
18

14

27

27
17
17

10

2013

2014

2015

6 SUZUKI MOTOR CORPORATION

2016

2017

2013

2014

2015

2016

2017

8

10

10

2013

2014

2015

15

17

2016

2017

Financial Highlights

Years ended 31 Marchn Capital expenditure/Depreciation

		

n ROE

n R&D expenses (Millions of yen)

(Millions of yen)

Capital expenditure

R&D expenses

Depreciation

Ratio of R&D expenses to sales

213,619

119,269

198,782

194,457

171,535
168,315

169,289ROE

131,539
127,090 125,897 131,031
15.4%

163,397

4.6%

134,377

4.3%

4.2%

4.2%

4.1%

117,188
93,680

2013

2014

2015

2016

2017

2013

n Total assets/Net assets/Shareholders' equity ratio

			

2014

2015

2016

2017

Net assets
3,252,800

2,487,635
46.1%

46.2%

2014

294,095

255,037
134,128

45.6%
35.9%

1,494,357

2,809

84,47289,505-20,502 -33,632

1,387,041

1,298,553

77,751

51,66036,356
1,701,390

1,187,703-120,909-210,559-242,435-288,564-286,559

2013

2014

2015

2016

2017

-520,361

2013

n Automobile production(Thousand units)

3,043
2,878 2,857

n Automobile sales

2014

2015

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

2016

2017

n Motorcycle sales(ATV included)

2,867 2,861 2,918

Overseas
2,312

2,269
2,033

1,988
2,090

2,203
1,992 1,981

2,111

Japan
2,022

1,799

1,766

2,231 2,279
1,480

2,100

1,501
1,367

1,370
2,236

1,852

1,948

1,645

1,699

1,358 1,229
1,044

998

1,055

(Thousand units)

3,074
2,951
2,664 2,709

1,834 1,859

2017

366,315

322,915
190,057

35.4%

2016

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

3,115,985
2,702,008

2015

n Cash flows (Millions of yen)

Shareholder’s equity ratio

2,874,074

6.9%

2013

(Millions of yen)
Total assets

9.6%

8.7%

7.5%

861

871

672

728

756

630

1,305

639
169

2013 2014 2015 2016 2017

1,440

2013 2014 2015 2016 2017

180

154

122

141

2013 2014 2015 2016 2017

76

74

67

61

62

2013 2014 2015 2016 2017

SUZUKI MOTOR CORPORATION 7

Year in Review

Year in Review
Automobiles
Years ended 31 Marchn Production units
2016

n Sales units

2017

1,585

(Thousand units)

n Operating results of automobile business2016(Thousand units)

2017
1,445

Segment profit
Margin

1,926
871
426
245

203
Europe

India

8.8％

6.7％

639
414

Japan

(100 million yen)

2,551

Asia

Japan

Europe

164
India

Asia

Others2016

2017

Suzuki’s Worldwide Manufacturing and Sales
Total overseas automobile production for FY2016 increased by 5.4% year-on-year to 2,203,000 units. Worldwide production, including Japan,
also increased by 4.2% year-on-year to 3,074,000 units.
Sales of automobiles in overseas market increased by 2.2% year-on-year to 2,279,000 units, while total global sales, including Japan, also increased by 2.0% year-on-year to 2,918,000 units.

Operating Results by Segment
In the automobile business, the operating income increased by ¥62.5 billion (32.4%) to ¥255.1 billion year-on-year mainly owing to improvement in sales and model mix in Japan, India, and Europe.

Japanese Market
1. Overview of the Japanese Automobile Market
Total domestic automobile sales volume in FY2016 rose by 3% year-on-year to 5,078,000 units. It recovered above five million units for the
first time in two fiscal years. Sales of standard and small vehicles rose by 8% year-on-year to 3,358,000 units, while sales of minivehicles fell
for the second consecutive fiscal year by 5% year-on-year to 1,720,000 units, owing partly to the impact of improper fuel consumption in
April 2016.

2. Suzuki Sales
Suzuki’s domestic automobile sales in FY2016 grew by 1% year-on-year to 639,000 units. Though Suzuki’s sales of minivehicles fell for thesecond consecutive fiscal year by 3% year-on-year to 532,000 units, its market share grew from 30.3% in the previous fiscal year to 30.9%.
Suzuki’s sales of standard and small vehicles rose for the second consecutive fiscal year by 32% year-on-year to 107,000 units. The key drivers of that growth were Solio launched in November 2016 equipped with newly-developed hybrid system, and the all-new Swift launched in
December 2016. Owing to sales contribution of these two models, the company achieved standard and small vehicle sales target of 100,000
units for the first time.

3. Suzuki Topics in FY2016• Compact crossover Ignis was awarded the 2016 Good Design Award in September 2016.
• Alto minicar achieved accumulated domestic sales of five million units in December 2016.

8 SUZUKI MOTOR CORPORATION

Solio Hybrid(launched in November 2016)

Spacia CustomZ(launched in December 2016)

Swift(launched in January 2017)

WagonR(launched in February 2017)

Year in Review

Overseas Markets
1. Overview of Suzuki’s Main Overseas Automobile Markets
New car sales (total market of passenger and commercial vehicles) in India grew in FY2016 by 8% year-on-year to 3,761,000 units, whilesales of passenger cars grew in Europe by 5% year-on-year to 17,898,000 units, and in China by 15% year-on-year to 24,578,000 units.
As for other countries and areas, new car sales in Indonesia grew by 3% year-on-year to 1,064,000 units, Thailand grew by 2% year-on-year
to 797,000 units, Pakistan fell by 5% year-on-year to 210,000 units, Oceania in total grew by 2% year-on-year to 1,347,000 units, Latin America in total grew by 1% year-on-year to 5,665,000 units, the Middle East in total fell by 15% year-on-year to 2,426,000 units, and Africa in total
fell by 16% year-on-year to 1,233,000 units.

2. Suzuki Sales
Suzuki’s overseas automobile sales volume in FY2016 grew by 2% year-on-year to 2,279,000 units. Suzuki’s sales in India rose by 11% yearon-year to a record-high 1,445,000 units owing mainly to strong demand for models including the Baleno and the Vitara Brezza. Suzuki’s
sales in Europe grew by 18% year-on-year to 245,000 units owing to launching of new models, the Baleno and the Ignis, in addition to strong
demand for the Vitara. Suzuki’s sales in China fell by 20% year-on-year to 148,000 units.
As for other countries and areas, Suzuki’s sales in Indonesia fell by 23% year-on-year to 92,000 units, Thailand grew by 8% year-on-year
to 23,000 units, Pakistan fell by 15% year-on-year to 113,000 units, other Asian countries in total fell by 34% year-on-year to 50,000 units,
Oceania in total grew by 6% year-on-year to 26,000 units, Latin America in total grew by 2% year-on-year to 103,000 units, the Middle East in
total fell by 10% year-on-year to 13,000 units, and Africa in total fell by 47% year-on-year to 23,000 units.

3. Suzuki Topics in FY2016• Swift achieved accumulated global sales of five million units in April 2016.
• Suzuki entered in light commercial vehicle segment in India by launching the Super Carry light truck in July 2016.
• Ignis made its European premiere at the Paris Motor Show in September 2016, and its sales started for the overseas market, subsequently.
The Ignis was selected as a finalist for the 2017 World Urban Car category at the World Car Awards in March 2017.
• Vitara Brezza won the Indian Car of the Year (ICOTY) 2017 in December 2016.

Super Carry (launched in India in July 2017)

Ignis (unveiled in Europe in September 2016)SUZUKI MOTOR CORPORATION 9

Year in Review

Motorcycles
Years ended 31 Marchn Production units (ATV included)
2016(Thousand units)

2017

n Operating results of motorcycle businessn Sales units (ATV included)

1,162

2016

(Thousand units)

2017

Segment loss

(100 million yen)

1,039

-9
141
Japan

63

62

45

32

OthersJapan

EuropeAmerica

4
America

Asia

190
Asia

Others

-102
2016

2017

Suzuki’s Worldwide Manufacturing and Sales
Total overseas motorcycle production (including ATVs) in FY2016 decreased by 9.4% year-on-year to 1,229,000 units. Worldwide
production, including production in Japan, also decreased by 7.4% year-on-year to 1,370,000 units.
Sales of motorcycles (including ATVs) in overseas market decreased by 9.3% year-on-year to 1,305,000 units, while total global sales,
including Japan, also decreased by 8.9% year-on-year to 1,367,000 units.

Operating Results by Segment
In the motorcycle business, the operating loss of ¥10.2 billion in the previous fiscal year improved to an operating loss of ¥0.9 billion
owing to reduction of expenses such as sundry expenses, despite the impact of the exchange rate.

Japanese Market
1. Overview of Japanese Motorcycle Market
The total domestic motorcycle sales (factory shipments) of the four Japanese manufacturers in FY2016 fell by 6% year-on-year to 341,000
units. Sales of models with engine displacements of 126cm3 and higher were down 10% year-on-year at 75,000 units. Sales of models withengine displacements up to 125cm3 were down 5% year-on-year at 266,000 units. In addition to aging of users and decrease in younger
population, which is a structural concern of poor demand in the domestic market, the cause of decline is assumed to be a decrease in production of models with engine displacements up to 125cm3, which was impacted by the 2016 Kumamoto Earthquake, and less than average
number of launches of new models with engine displacements of 126cm3 and higher.

2. Suzuki Sales
Suzuki’s domestic sales (factory shipments) in FY2016 grew by 3% year-on-year to 60,000 units. Sales of models with engine displacementsof 126cm3 and higher fell by 2% year-on-year to 8,000 units. Sales of models with engine displacements up to 125cm3 rose by 4% year-onyear to 52,000 units. Although models with engine displacements between 126cm3 and 250cm3 grew by 8% to 4,262 units owing to launchof new model GIXXER, models with engine displacements of 251cm3 and higher fell by 11% to 3,545 units. Models with engine displacements
up to 125cm3 increased year-on-year owing to strong sales of the Let’s series.

3. Suzuki Topics in FY2016• The all-new SV650 ABS, a sportbike with 650cm3 V-twin engine was launched in August 2016.
• GIXXER, a 150cm3 sportbike favoured in the overseas market was launched in January 2017.
• New 750cm3 model GSX-S750 ABS was launched in March 2017.

SV650 ABS (launched in August 2016)

10 SUZUKI MOTOR CORPORATIONGIXXER (launched in January 2017)

GSX-S750 ABS (launched in March 2017)

Year in Review

Overseas Markets
1. Overview of Suzuki’s Main Overseas Motorcycle Markets
Sales of motorcycles in Europe in FY2016 grew by 10% year-on-year to 1,041,000 units. Sales of motorcycles (including ATVs) in North America declined by 4% year-on-year to 791,000 units.
Sales in the six key ASEAN countries (Indonesia, Thailand, Vietnam, the Philippines, Malaysia, and Cambodia) were flat on the year at
12,519,000 units. Sales in China fell by 9% year-on-year to 7,976,000 units. Sales in India grew by 7% year-on-year to 17,587,000 units.

2. Suzuki Sales
Suzuki’s overseas motorcycle sales in FY2016 declined by 9% year-on-year to 1,305,000 units.
Sales declined in Europe by 6% year-on-year to 45,000 units, North America by 30% year-on-year to 32,000 units.
Sales in the six key ASEAN countries fell by 13% year-on-year to 265,000 units owing mainly to a drop in sales in Indonesia. Sales in China
also fell by 21% year-on-year to 359,000 units. Sales in India grew by 12% year-on-year to 351,000 units.

3. Suzuki Topics in FY2016• Five new models (GSX-R1000/R, GSX-S750, V-Strom 650/XT, V-Strom 1000/XT, and GSX-R125) for 2017 were unveiled at the Intermot heldin Cologne, Germany in October 2016, and four more models (GSX-S125, GSX250R, V-Strom 250, and BURGMAN 400) were unveiled at the
Milan Show held in Milan, Italy in November 2016.
• Two new models (GSX-R150 and GSX-S150) for the ASEAN region were unveiled at the Indonesia Motorcycle Show held in Jakarta, Indonesia in November 2016.
• In its second season after returning to the world’s premier motorcycle racing MotoGP, Suzuki made four podium appearances including a
win at the British MotoGP Round 12, finishing fourth overall for the 2016 season. Also, Suzuki Endurance Racing Team, an endurance teamof a subsidiary Suzuki France that participates with the supersport bike GSX-R1000, achieved its second consecutive, 15th title of the World
Endurance Championship.

GSX-R1000R (unveiled for overseas market in October 2016)

V-Strom 1000XT ABS (unveiled for overseas market in October 2016)

GSX250R ABS (unveiled for overseas market in November 2016)

GSX-R150 ABS (launched in Indonesia in November 2016)SUZUKI MOTOR CORPORATION 11

Year in Review

Marine Productsn Operating results of marine and power products, etc. business
Years ended 31 March

Segment profit(100 million yen)Margin

129

125

18.9％

18.5％

2016

2017

Operating Results by Segment
In the marine and power products, etc. business, the net sales decreased by ¥0.7 billion (0.9%) to ¥67.6 billion year-on-year mainly owing to theimpact of the exchange rate, despite increase in the sales of the outboard motors in North America. The operating income decreased by ¥0.4
billion (2.6%) to ¥12.5 billion year-on-year.

Overview of Marine Products
Suzuki’s domestic outboard motor sales in FY2016 rose by 4% year-on-year in volume and in net terms.
Suzuki’s export sales surged by 5% year-on-year in volume terms and by 1% year-on-year in net terms. Shift in demand toward larger models
and strong sales in countries including the United States covered the negative impact of the foreign exchange rate.
Suzuki’s four-stroke outboard motors range from the DF2 (the lowest-power model, which delivers 1.49kW/2PS) to the DF350 (the highest-power model, which delivers 257.4kW/350PS). The Company produces small models in Thailand and larger models at the Toyokawa Plant in Japan.

Suzuki Topics in FY2016• New black colour was introduced for the first time in 20 years for Suzuki outboard models. Graphic was also renewed, making it a more
stylish design while keeping the image of Suzuki outboard which has a history of more than 50 years.
• New large outboard models DF175AP and DF150AP were unveiled in September 2016. They received Top Products award by the Boating
Industry, a leading marine magazine in the United States. They became the third Suzuki outboard models to win the award.

DF175AP(unveiled in September 2016)

12 SUZUKI MOTOR CORPORATION

Year in Review

Environmental Initiatives
As a manufacturer of automobiles, motorcycles, outboard motors, and other items, Suzuki acts inconsideration of the environment at all product stages from development to disposal.
In product development, our environmental initiatives include improving fuel economy, reducing
exhaust emissions, developing clean-energy vehicles, and reducing noise. In manufacturing, our efforts include reducing environmental risk, reducing energy requirements, and promoting the use ofalternative energy sources. In distribution, we focus on improving the operational efficiency and energy efficiency of transportation and on promoting the three Rs (reducing, reusing, and recycling). In
marketing, we promote environmental management among our dealers and strive to ensure proper
disposal of end-of-life products.
We also pursue environmental initiatives that are not directly related to our products. For instance,
we promote energy savings and green purchasing in our offices, give our workers environmental education, and support social action programs in local communities.

SUZUKI CSR & ENVIRONMENTALREPORT 2016

Suzuki Topics in FY2016• Suzuki published “Suzuki CSR & Environmental Report 2016”. The Company has published a report about its
environmental initiatives every year since FY1999.
• Burgman Fuel Cell, a fuel cell scooter with a vehicle type approval, was registered and it received a license
plate in March 2017. Riding on public roads to verify market potential of fuel cell motorcycle has started.
• New models of Solio/Solio Bandit compact cars equipped with newly-developed hybrid system wereintroduced in Japan. Also, full model change of Suzuki’s main automobile models, Swift compact car andWagonR/WagonR Stingray minicars equipped with mild hybrid system were launched in Japan.

Solio Hybrid (launched in November 2016)

Swift (launched in January 2017)

Burgman Fuel Cell

WagonR (launched in February 2017)

Sales units of models equipped with hybrid system (Thousand units)
FY2015FY2016
Global automobile sales units Global automobile sales units
Of whichhybrids

Of whichhybrids

Japan

630

202

639

287

India

1,305

46

1,445

85

Others

926

1

835

17

Total

2,861

249

2,918

389

OthersIndia
Japan
Ratio of hybrids
in global sales* Hybrids include mild hybrid, S-ENE CHARGE, and SHVS.
* Hybrid sales units of Others are units exported from Japan and India.

Models equipped with hybrid system
WagonR/WagonR Stingray, Hustler, Spacia/Spacia Custom, Solio/Solio Bandit, Swift, Baleno, Ignis, Ciaz, and Ertiga* Depending on the market, there are models that are not equipped with hybrid system.

SUZUKI MOTOR CORPORATION 13

Topics

TopicsApril 2016
Suzuki Makinohara Solar Power Plant completed
Suzuki Makinohara Solar Power Plant, a 20MW (megawatt) solar
power facility that has been under construction and conducting
test operations since 2015, has been completed.
Combined with the 0.9MW power facility installed in the Hamamatsu Plant at Miyakoda-cho, Kita-ku, Hamamatsu and the 4MW
power plant at Maisaka-cho, Nishi-ku, Hamamatsu, this brings thetotal installed capacity of the Suzuki Group’s solar power facilities
to approximately 25MW. We estimate the CO2 emission reduction
effect of operating these solar power facilities to be about 10% of
Suzuki’s domestic plant CO2 emissions for FY2015. By contributing
regionally through power generation projects and promoting local
production for local consumption, the Suzuki Group will reinforce
its efforts to curb climate change and conserve the environment.

September 2016
Suzuki unveils new DF175AP/DF150AP
outboard motors
Suzuki unveiled its new DF175AP and
DF150AP outboard motors at the Genoa International Boat Show in Italy.
These outboard motors adopt Suzuki Selective Rotation technology enabling switching
between regular and reverse propeller direction, a world-first in this engine class*.
Under the brand slogan “The Ultimate
4-Stroke Outboard - Aiming to be theworld’s No. 1 brand in 4-stroke outboards”,
Suzuki Motor Corporation is addressing
customer needs in the global market with amodel lineup that demonstrates high output
and excellent fuel efficiency, from the portable DF2 to the powerful DF350A.
* Between 150-175 HP class. Based on Suzuki’s
research.

DF175AP

October 2016

Suzuki Makinohara Solar Power Plant

July 2016
Suzuki Education and Culture Foundation selects
scholarship students for FY2016
The Suzuki Education and Culture Foundation offers non-repayable
scholarships to high school students in Shizuoka prefecture, or university students who graduated from high school in Shizuoka prefecture, who are keen to learn but unable to focus on their studies
for financial reasons.
In FY2016, the foundation decided to provide scholarships to 20
new high school students and 3 new university students, in addition to the 32 high school students and 10 university students it
has been supporting since the previous year. This brings the total
number of students supported over the last 16 years to 295 and thetotal amount of support to ¥232.5 million.
The activities of the Suzuki Education and Culture Foundation are
aimed at contributing to young people’s healthy development
and international exchanges by providing financial assistance forschoolchildren and university students and supporting sports andlearning activities for youngsters and schools for foreigners, etc.

Suzuki and Toyota begin exploring business
partnership, sign memOrandum
Suzuki and Toyota Motor Corporation announced on 12 October,2016 that the two companies would start discussions leading toward a collaborative partnership.
They later signed a memorandum of agreement on 6 February, 2017
stating both companies’ intention to contribute to the resolution ofsocial issues and the healthy and sustainable development of theautomobile society.
They are considering how to achieve future partnerships in areas
such as environmental technology, safety technology, information
technology, and product and unit complementation.

Akio Toyoda, President, Toyota Motor Corporation and Osamu Suzuki, Chairman,
Suzuki Motor Corporation (at the press conference held on 12 October, 2016)14 SUZUKI MOTOR CORPORATION

Topics

November 2016

November 2016
Suzuki cooperates on Manufacturing Skill Transfer
Promotion Programme, establishes training institutein India
Suzuki Motor Corporation is collaborating on the Manufacturing
Skill Transfer Promotion Programme agreed between the governments of India and Japan on 11 November, 2016, having decided
to establish an industrial training institute in the Mehsana districtof Gujarat state to support human resource development in India’s
manufacturing sector.
The industrial training institute has been established as theJapan-India Institute for Manufacturing (JIM), and opened on 1
August, 2017.
In promoting the Indian government’s “Make in India” and “Skill India” initiatives, Suzuki will be helping through Japanese manufacturing to cultivate India’s human resources and develop its manufacturing industry.

Suzuki launches new Solio and Solio Bandit with
newly-developed hybrid system
Suzuki has launched new versions of the Solio and Solio Bandit
equipped with a newly-developed hybrid system. While maintaining
the Solio’s original appeal of a compact body and roomy cabin, the
new models adopt Suzuki’s unique hybrid system combining Motor
Generator Unit with Auto Gear Shift (AGS) to realize low fuel consumption of 32.0km/L* together with a powerful sense of acceleration.
* Measured in JC08 test cycle and verified by Japan’s Ministry of Land, Infrastructure, Transport and Tourism.

Image of hybrid system
Signing ceremony held at the Japanese Prime Minister’s office(provided by the Cabinet Office of Japan)

October, November 2016
Suzuki unveils 9 new motorcycle models at
European motorcycle show
At INTERMOT held in October in Cologne, Germany, Suzuki Motor
Corporation unveiled five new motorcycle models for the overseas
market mainly targeting Europe and North America.
Comprehensively enhanced for the first time in eight years, the sixth
generation of Suzuki’s flagship supersport bike GSX-R1000 and its
advanced version GSX-R1000R have been further evolved by incorporating technologies developed in MotoGP.
In addition, four more new models for the overseas market were
unveiled at Milan Show in November, including the new GSX250R.
Suzuki’s motorcycle business is playing a vital role in strengthening
the Suzuki brand. We strive to enhance our product series and will
actively release original products that surpass our customers’ expectations.

December 2016
Suzuki achieves ASV++ rating in JNCAP preventive
safety performance assessment
Suzuki cars equipped with Dual Camera Brake Support (DCBS), a
stereo camera type collision-mitigating system, or Dual Sensor
Brake Support (DSBS), a monocular camera and infrared laser radar
device, have attained the top rating of ASV++*1 in the FY2016 JNCAP*2 program of preventive safety performance assessment.
In FY2016 about 60% of passenger cars (minivehicles and standard and small vehicles) sold by
Suzuki were fitted with a collision-mitigating system including one of the above brake supports.
Suzuki will continue to enhance our safety technologies going forward as we work on improving
the safety of our vehicles.
【Suzuki models certified with ASV++】
Equipped with DCBS

Equipped with DSBS

Minivehicle

Hustler, Spacia

WagonR

Standard andsmall vehicle

Solio, Ignis

Swift*For models equipped with optional safety package.
* 1 ASV: Advanced Safety Vehicle* 2 JNCAP: Japan New Car Assessment Program

GSX-R1000RSUZUKI MOTOR CORPORATION 15

Topics

December 2016
Suzuki launches all-new SwiftThe new Swift has adopted a daringly advanced design while retaining the essential Swift DNA. Onto the new-generation platform
HEARTECT is installed a mild hybrid 1.2L engine or 1.0L direct-injection turbo engine to deliver both driving performance and fueleconomy. Launched in 2004, the Swift is Suzuki’s flagship compactcar, which is now manufactured at overseas plants too, and soldaround the world.

January 2017
MotoGP project for the 2017 Championshipannounced
Suzuki Motor Corporation has presented its new project for TeamSUZUKI ECSTAR, a team competing in the MotoGP class of theworld’s premier motorcycle racing series, the 2017 FIM* Road Racing Grand Prix (MotoGP).
Two new riders, Andrea Iannone (Italy), who was ranked ninth in the
MotoGP class last season, and Alex Rins (Spain), who has steppedup from the Moto2 class, are competing. As well as enhancing machine development, Suzuki will strive to improve its brand image by
feeding this back into its products and developing more attractive
bikes.
* FIM: Fédération Internationale de Motocyclisme (International Motorcycling
Federation)

Andrea Iannone (left) and Alex Rins (right)

February 2017
December 2016

February 2017

Vitara Brezza wins Indian Car of the Year

Gujarat Plant in India starts operation

The new SUV Vitara Brezza, manufactured and sold by Suzuki’s Indian subsidiary Maruti Suzuki India Limited, has won Indian Car of
the Year (ICOTY) 2017.
The Vitara Brezza is a stylish urban compact SUV developed by focussing on Indian customers’ tastes and values, such as by keeping
vehicle length under 4m to gain tax incentives. Sales of the Vitara
Brezza reached 100,000 units in March 2017, about one year after
launch, making it a core model that is leading Maruti Suzuki India
Limited’s sales and India’s growing SUV market.

Suzuki Motor Gujarat Pvt. Ltd. (SMG), established in Ahmedabad,
Gujarat in India, has started to manufacture Baleno from 1 February.
The Gujarat Plant is located close to Mundra Port, and will be utilised as the export hub for markets including Europe, Africa andJapan.
SMG is also planning construction of its Gujarat Plant No.2 andEngine & Transmission Plant. Suzuki’s total production capacity inIndia upon completion of Plant No.2 is forecast to reach 2 million
units, which will meet growing demand in India’s automobile market.

Launching event held in India (February 2016)16 SUZUKI MOTOR CORPORATION

Gujarat Plant

Topics

February 2017
Suzuki launches all-new WagonR and WagonR
Stingray
The all-new WagonR and WagonR Stingray offer even roomier cabin
space and further enhance the user-friendliness of a miniwagon,
while adopting three distinctive styling designs. Onto the newgeneration platform HEARTECT is installed a mild hybrid system thatlets the vehicle drive solely on motor when it starts moving, which
realises a low fuel consumption of 33.4km/L*. There are advanced
safety technologies such as the Dual Sensor Brake Support collision-mitigating system and head-up display, and user-friendlinesshas been enhanced such as with umbrella holders on the inside ofboth rear doors.

March 2017
Ignis Finishes in Top 3 in 2017 World Urban
Car Category
The Suzuki Ignis compact car finished in the Top 3 of the Urban
Car category at the World Car Awards held by the WCA (World Car
Awards). The Urban Car category was instigated for the first time thisyear in order to select the world's top cars for urban environments.
The Ignis is a stylish and highly-manoeuvrable compact crossovermodel that is sold throughout the world, including Japan, India, andEurope.

* Measured in JC08 test cycle and verified by Japan’s Ministry of Land, Infrastructure, Transport and Tourism. For HYBRID FX (2WD) WagonR, HYBRID FZ(2WD) WagonR, and WagonR Stingray HYBRID X (2WD) models.

February 2017
Suzuki Foundation funding for FY2016
Founded in March 1980 to commemorate the 60th anniversary of
the foundation of Suzuki Motor Corporation, the Suzuki Foundation
provided financial assistance in FY2016 to 38 research initiatives
totalling ¥78 million in the form of scientific technology research
assistance and proposed subject research assistance.
This was the Foundation’s 37th round of financial assistance, which
has included research funding for universities and research institutes nationwide and grants for accepting overseas researchers inorder to support technical development in the machine industry andencourage and assist young people keen to get involved in thesefields. Since its launch, the Foundation has supported 1,516 projects
in all with financial assistance totalling ¥1,716.6 million.

SUZUKI MOTOR CORPORATION 17

Directors, Auditors and Officers

Directors, Auditors and Officers[Representative Directors]
Representative Director
and Chairman(Chairman of theBoard of Directors)

Osamu Suzuki

Representative Director
and Vice Chairman

Yasuhito Harayama

Representative
Director andPresident (CEO & COO)

Toshihiro Suzuki

Supporting Chairman[Directors]
Director and SeniorTechnical Executive
Director andManaging Officer
Director

Osamu Honda
Masahiko Nagao

Executive General Manager, Corporate Planning OfficeHiroaki Matsuura

Executive General Manager, Manufacturing Engineering

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

[Audit & Supervisory Board Members]
Audit & Supervisory
Board Member
Audit & Supervisory
Board Member (Outside)

Kunio Nakamura
Eiji Mochizuki
Norio Tanaka
Yasuhiro Yamazaki
Nobuyuki Araki* Norio Tanaka, Yasuhiro Yamazaki and Nobuyuki Araki are the outside audit & supervisory board members as stipulated in Article 2, Item 16 of Companies Act of Japan. Yasuhiro Yamazaki is an audit & supervisory board member.

[Executive Vice President]
Executive Vice
President

Kenichi Ayukawa

Managing Director and CEO, Maruti Suzuki India Ltd.

[Senior Managing Officers]
Senior Managing
Officer

Ichizo Aoyama

Executive General Manager, Global IT

Toshiaki Hasuike

Executive General Manager, Automobile Engineering[Managing Officers]

Managing Officer

Kazuo Hakamata
Masato Kasai
Izumi Oishi
Taisuke Toyoda
Hirofumi Nagao
Keiichi Asai
Shuji Oishi
Kazuki Yamaguchi
Shigeyuki Yamamura
Toshiaki Suzuki
Hidenori Yamashita
Kinji Saito
Ichiro Onishi
Keiji Miyamoto
Kazuhiko Ayabe
Shinichi Imaizumi
Naoki Suzuki
Kazunobu Hori
Katsuhiro Kato
Shigeo Yamagishi

18 SUZUKI MOTOR CORPORATION

Production & Purchasing, PT. Suzuki Indomobil Motor (Indonesia)
Executive General Manager, Customer Quality and Service
Executive General Manager, Manufacturing
Executive General Manager, Finance
Based in Pak Suzuki Motor Co., Ltd. (Pakistan)
President, Chongqing Changan Suzuki Automobile Co., Ltd. (China)
President, PT. Suzuki Indomobil Motor (Indonesia)
President, Suzuki Motor Sales Kinki Inc.
Executive General Manager, Administration
Executive General Manager, Domestic Marketing I, Domestic Marketing
Deputy Executive General Manager, Manufacturing (Production Quality Assurance & Overseas Manufacturing)
Executive General Manager, Global Automobile Marketing
Deputy Executive General Manager, Automobile Engineering (Development Quality)
Executive General Manager, Domestic Marketing II, Domestic Marketing
Executive General Manager, Purchasing
Division General Manager, Domestic Marketing Administration & Promotion Division, Domestic Marketing
Deputy Executive General Manager, Automobile Engineering (Powertrain)
Deputy Executive General Manager, Manufacturing Engineering
Executive General Manager, Automobile Product & Cost Planning
Executive General Manager, Vehicle Regulations and Engineering Administration

Corporate Governance Issues

Corporate Governance Issues
1. Basic policy on corporate governanceThrough fair and efficient corporate activities, the Company always intends to be trusted by all our stakeholders including shareholders, customers, partner companies, local communities and employees, and to be a continuously growing company, while making afurther contribution to the international community. In order to realise that intention, the Company considers that the enhancementof the corporate governance is one of the most important issues for proper corporate management and is aggressively taking various
kinds of measures.
Also, in order to be trusted further by society and stakeholders, we disclose information quickly in fair and accurate manner prescribed in laws and regulations and actively disclose information that we concluded is beneficial to understand the Company. We willfurther enhance the transparency of the Company.

2. Corporate Governance System
The Company has elected to be a company with Audit & Supervisory Board.
In addition to the supervisory function of execution of business by the Board of Directors and the auditing function by the Audit &Supervisory Board, establishment of Advisory Committee on Personnel and Remuneration, etc. of which highly independent Outside
Directors and Outside Auditors as the advisory body of the Board of Directors enables enhancement of governance.
For details of the Company’s corporate governance system, please refer to the Corporate Governance Report.
http://www.globalsuzuki.com/ir/library/governance/pdf/report.pdf

General Meeting of Shareholders
Appoint/Dismiss

Appoint/Dismiss

Appoint/Dismiss

Cooperate

Audit

Board of Directors
8 Directors ( 2 Outside Directors )Submitreports

Audit & Supervisory Board
5 Company Auditors
Secretariat
of Audit &Supervisory
Board

Consult
ReportAdvisory Committee
on Personnel andRemuneration, etc.

Instruct

ReportAudit
Department

Supervise

Independent Auditor(3 Outside Auditors)

Accounting audit

Cooperate

Instruct

Executive
Committee

SubmitCorporate GovernanceCommittee

Instruct

Various meetings on
management andexecution of operation
Communicate
policySupervise

External
LawyerReportRisk Management Hotline

Consultation
ReportPromotecomplianceand riskmanagement
Audit Audit(Whistleblowing system)

Accounting audit

Each division of the Company / Subsidiaries and affiliates of the Company

SUZUKI MOTOR CORPORATION 19

Risks in Operations

Risks in Operations
Risks that may affect the management results, stock price and financial situation of the Group include the followings.
Forward-looking statements in this section are based on our conclusions as of the end of FY2016.

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

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

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

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

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

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

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

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

Risks in Operations

n Government regulations

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

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

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

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

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

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

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

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

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

SUZUKI MOTOR CORPORATION 21

The Status of the Corporate GroupThe Status of the Corporate GroupThe outline of the corporate group
The corporate group of the Company consists of consolidated subsidiaries of 136 companies and affiliates of 32. The main businesses are
manufacturing and marketing of automobiles, motorcycles, marine & power products, motorised wheelchairs, electro senior vehicles andhouses, further developing the businesses of logistics and other services related to the respective operations.
The position of the group companies in relation to the segmentation is as follows.

Automobile
Automobiles are manufactured by the Company as well as in overseas, by subsidiaries, Magyar Suzuki Corporation Ltd., Maruti Suzuki
India Limited and by an affiliate, Chongqing Changan Suzuki Automobile Co., Ltd. and others. Some of parts are manufactured by Suzuki Auto Parts Mfg. Co., Ltd. and others, and they are purchased by the Company.
The marketing of automobiles is carried out in the domestic market by a subsidiary, Suzuki Motor Sales Kinki Inc. and other marketingcompanies throughout the market, and in overseas markets, by a subsidiary, Suzuki Deutschland GmbH and other marketing companies and manufacturing & marketing companies. The business of logistics services is conducted by a subsidiary, Suzuki Transportation& Packing Co., Ltd.

Motorcycle
Motorcycles are manufactured by the Company as well as in overseas, by a subsidiary Thai Suzuki Motor Co., Ltd. and others. Some ofparts are manufactured by a subsidiary, Suzuki Auto Parts Mfg. Co., Ltd. and others, and those parts are purchased by the Company.
The marketing of the motorcycles is conducted in the domestic market by a subsidiary, Suzuki Motorcycle Sales Inc. and other marketing companies, and in overseas markets through a subsidiary, Suzuki Deutschland GmbH and other marketing companies and manufacturing & marketing companies.

Marine and Power products, etc.
Outboard motors are manufactured mainly by the Company and marketed by a subsidiary, Suzuki Marine Co., Ltd. and others.
In the domestic market, the marketing of motorised wheelchairs and electro senior vehicles are conducted by a subsidiary, Suzuki Motor Sales Kinki Inc. and others, and the marketing of houses is conducted by a subsidiary, Suzuki Business Co., Ltd.

22 SUZUKI MOTOR CORPORATIONThe Status of the Corporate GroupOperation Flow Chart
Operation flow chart is as follows (Major companies and businesses only)

No marks : Subsidiaries: Affiliates
Overseas Manufacturing &Marketing Companies

Flow of products, parts

A/M M/C M/PMagyar Suzuki Corporation Ltd.

Flow of services

Maruti Suzuki India Ltd.
A /M : Automobile
M/C : Motorcycle
M/P : Marine and Power products, etc.

Suzuki Motor Gujarat Private Ltd.
Suzuki Motorcycle India Private Ltd.
PT Suzuki Indomobil Motor
Pak Suzuki Motor Co., Ltd.
Suzuki Motor (Thailand) Co., Ltd.
Thai Suzuki Motor Co., Ltd.
Suzuki Philippines Inc.
Suzuki Manufacturing ofAmerica Corp.
Krishna Maruti Ltd.

Domestic Manufacturing Companies A/M M/C M/P
Snic Co., Ltd.

Jiangxi Changhe Suzuki
Automobile Co., Ltd.

Suzuki Toyama Auto Parts Mfg Co., Ltd.

The Company

Hamana Parts Industry Co., Ltd.
Overseas Marketing Companies

A/M M/C M/PSuzuki Deutschland GmbH
Suzuki GB PLC
Suzuki France S.A.S.
Suzuki Italia S.p.A.
Suzuki Motor Iberica, S.A.U.

Logistic Services
Suzuki Transportation& Packaging Co., Ltd.

A/M M/C M/PDealers and Customers

Chongqing Changan
Suzuki Automobile Co., Ltd.

Suzuki Auto Parts Mfg. Co., Ltd.

Suzuki Finance Europe B.V.
Taiwan Suzuki Automobile Corp.
Suzuki Motor of America, Inc.
Suzuki Australia Pty. Ltd.
Suzuki Motor de Mexico, S.A. de C.V.

Domestic Marketing Companies

A/M M/C M/PSuzuki Motor Sales Tokyo Inc.
Suzuki Motor Sales Hamamatsu Inc.
Suzuki Motor Sales Kinki Inc.
Suzuki Motorcycle Sales Inc.
Suzuki Marine Co., Ltd.
Suzuki Finance Co., Ltd.

Other Domestic Companies

A/M M/C M/PSuzuki Business Co., Ltd.

SUZUKI MOTOR CORPORATION 23

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

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

2017

2016

2015

2014

2013

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

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

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

159,956

116,660

96,862

107,484

80,389

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

362.54234.98172.67

191.60143.31

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

362.48234.92172.63191.57131.67

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

44.00

32.00

27.00

24.00

18.00

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

1,387,041

1,187,703

1,701,390

1,494,357

1,298,553

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

1,955,973

1,632,630

2,008,729

1,790,832

1,560,218

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

3,115,985

2,702,008

3,252,800

2,874,074

2,487,635

Depreciation and amortization.....

163,397

168,315

134,377

117,188

93,680Years ended 31 March

Net income per share:

SUZUKI MOTOR CORPORATION 25

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

Millions of yen

2017

2016

¥ 614,031¥ 450,088

349,224

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

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

332,116

286,301

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

113,845

116,378

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

551,576

450,046

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

1,955,973

1,632,630

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

261,130

255,013

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

Buildings and structures *438,043416,217

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

1,363,140

1,286,385

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

396,523

408,683

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

48,22350,361

2,507,061

2,416,660

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

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

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

756,344757,076

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

314,594

226,516

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

52,841

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

44

50

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

Deferred tax assets *21,14014,773

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

15,047

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

403,667

312,301

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

¥3,115,985¥2,702,008

Property, plant and equipment:

Investments and other assets:

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

26 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

Millions of yen

2017

2016

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

¥ 96,643¥ 201,507

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

119,958

64,982

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

428,063402,624

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

83,07064,055

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

31,86329,486

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

Accrued expenses *191,068

183,695

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

76,99566,032

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

55

481

LIABILITIES AND NET ASSETS
Current liabilities:

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

160,402

133,089

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

1,188,121

1,145,956

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

200,400—

222,870

262,797

63,09956,346

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

1,976

3,056

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

1,384

7,484

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

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

Others *51,091

38,663

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

540,822368,348

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

1,728,943

1,514,305

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

138,014138,014

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

144,035

144,166

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

1,058,549

913,656

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

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

(191,051)(191,169)

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

1,149,548

1,004,668

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

98,827

77,624

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

1,269

536
(115,551)

Accumulated other comprehensive income:

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

(119,236)

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

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

(29,683)(46,970)

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

126

188

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

267,049

229,816

Total net assets¥1,387,041¥1,187,703

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

¥3,115,985¥2,702,008

SUZUKI MOTOR CORPORATION 27

Consolidated Financial Statements

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

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2017

2016

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

¥3,169,542¥3,180,659

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

2,261,914

2,313,779

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

907,627

866,879

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

640,942

671,571

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

266,685

195,308

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

16,827

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

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

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

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

Impairment loss *(39,936)(322)

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

54,067

38,633

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

295,200

245,631

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

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

5,319

5,051

97,58392,330197,616

153,300

Income taxes: *NOTE 10

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

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

¥ 159,956¥ 116,660

Yen

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

¥

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

362.48234.92

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

44.00

32.00

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

28 SUZUKI MOTOR CORPORATION

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

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2017

2016

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

¥197,616¥153,300

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

28,375(77,011)

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

505

(29)

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

3,634(100,590)

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

(655)(10,562)

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

(2,318)(3,411)

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

29,541(191,605)

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

227,158(38,304)

Comprehensive income attributable to owners of the parent...

177,276(51,260)

Comprehensive income attributable to non-controlling interests...

49,881

12,955Comprehensive income attributable to:

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

SUZUKI MOTOR CORPORATION 29

Consolidated Financial Statements

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

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES

Thousandsof sharesof common
stock

Total
Shareholders’equityCapitalstock

CapitalsurplusRetainedearnings

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

Dividends from surplus......

—

—

—

(16,156)—(16,156)

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

—

—

—

116,660—

116,660

Purchase of treasury stock....

—

—

—

—

(460,479)(460,479)

Disposal of treasury stock......

—

—

(95)

—

180

84

Retirement of treasury stock...

(70,047)—(269,191)—

269,191—

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

——

269,287(269,287)——

Capital increase ofConsolidated subsidiaries.....

—

—

(198)

—

—

(198)

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

—

—

—

—

—

—

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

—

—

(198)

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

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

Dividends from surplus......

—

—

—

(15,003)—(15,003)

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

—

—

—

159,956—

159,956

Purchase of treasury stock....

—

—

—

—

(4)

(4)

Disposal of treasury stock......

—

—

(60)

—

122

62

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

—

—

60

(60)

—

—

Capital increase of
consolidated subsidiaries......

—

—

(130)

—

—

(130)

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

—

—

—

—

—

—

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

—

—

(130)

144,892

118

144,880

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

Balance as of
31 March 2015

Balance as of
31 March 2016

Balance as of
31 March 201730 SUZUKI MOTOR CORPORATION

Treasury stockConsolidated Financial Statements

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES

Valuationdifferenceonavailablefor-salesecurities

Balance as of
31 March 2015

¥158,788¥679¥(42,997)¥864¥117,333¥250

Dividends from surplus......

—

—

—

—

—

—

—

(16,156)

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

—

—

—

—

—

—

—

116,660

Purchase of treasury stock....

—

—

—

—

—

—

—

(460,479)

Disposal of treasury stock......

—

—

—

—

—

—

—

84

Retirement of treasury stock ...

—

—

—

—

—

—

—

—

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

—

—

—

—

—

—

—

—

Capital increase ofConsolidated subsidiaries.....

—

—

—

—

—

—

—

(198)

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

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

10,768(153,598)

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

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

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

Dividends from surplus......

—

—

—

—

—

—

—

(15,003)

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

—

—

—

—

—

—

—

159,956

Purchase of treasury stock....

—

—

—

—

—

—

—

(4)

Disposal of treasury stock......

—

—

—

—

—

—

—

62

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

—

—

—

—

—

—

—

—

Capital increase ofConsolidated subsidiaries.....

—

—

—

—

—

—

—

(130)

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

21,202732(3,685)(962)

17,287(62)37,23254,458

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

21,202732(3,685)(962)

17,287(62)37,232

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

Balance as of
31 March 2016

Balance as of
31 March 2017

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Total
Accumulated accumulated
adjustment
otherfor retirement comprehensive
incomebenefit

Subscription
rights toshares

Noncontrollinginterests

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

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

SUZUKI MOTOR CORPORATION 31

Consolidated Financial Statements

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

Millions of yen

2017

2016

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

27,08845,400(108,365)

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

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

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

32 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

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

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

SUZUKI MOTOR CORPORATION 33

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

Consolidated Financial Statements

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

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

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

Location
Thailand
Asia

Assets for motorcycle business

Asia

Assets for other business
Assets for rent
Idle assets

Japan
Japan
Japan

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

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

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

SUZUKI MOTOR CORPORATION 35

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

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

36 SUZUKI MOTOR CORPORATION

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

2017

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

Carrying
amount¥693,952
349,224

Fair value¥693,952
351,454—
2,229

Carrying
amount¥497,187
335,343

Difference¥

Fair value

Difference¥497,187
337,385

¥

—
2,041

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

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

—
1,443
3,673
—
—
148
—

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

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

—
436
2,477
—
—
58
—

200,400

251,450(51,050)———

222,870
1,259,003

221,236
1,308,270

1,634(49,267)

262,797
1,115,607

260,818
1,113,569

1,979
2,037

1,544
296

1,544
296

—
—

1,340
736

1,340
736

—
—

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

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

SUZUKI MOTOR CORPORATION 37

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

2017

2016

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

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

20,514

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

77

210

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

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

2017
Over 1 year,
Within5 years

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

Over 5 years,
Within
10 years

Over 1 year,
Within5 years

Within1 year—¥ —¥ 497,187

226,403

122,412409

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

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

90,513360

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

2017
Acquisition
cost

2016

Carrying
AmountDifference

Acquisition
cost

Carrying
AmountDifference¥ 99,152

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

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

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

—

—

—

—

—

—

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

413,408

477,832

64,423302,911332,224

29,313

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

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

¥

758

¥

700

¥

(58)

6,549

6,107

(441)

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

—

—

—

—

—

—

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

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

Total¥494,858¥636,102¥141,243

38 SUZUKI MOTOR CORPORATION

(58)

¥

6,549

¥360,249¥

6,107¥488,274¥(441)¥128,024

Consolidated Financial Statements

b. Available-for-sale securities soldMillions of yen

2017

2016

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

¥337,540¥247,317

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

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

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

Millions of yen
2016

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

Contract/
notional
amount¥Amountdue after
one year

Fair value

Gain(loss)¥

2

Contract/
notional
amountAmountdue after
one year

Fair value2¥ 5,444

—

¥175

¥175

Gain
(loss)

565—¥

13,5001,377
17,432
—

—
—
—
—

221
(6)
(371)
—

221
(6)
(371)
—

3,733
766
83
57

—
—
—
—

160
36
(0)
(1)

160
36
(0)
(1)

13,000¥45,875

—
—

354
¥199

354
¥199

—
¥10,085

—
—

—
¥370

—
¥370

SUZUKI MOTOR CORPORATION 39

Consolidated Financial Statements

Interest and currency related transactions (non-market transactions)

Millions of yen
2016

2017
Contract/
notional
amountAmountdue after
one year

Fair value

Cross currencyinterest rate swap
Pay floatingreceive floating
Pay INR
receive USD

¥—

¥—

¥—

Pay fixed
receive floating
Pay IDR
receive USD——

Pay fixed
receive floating
Pay IDR
receive JPY

—

Total

¥—

Type

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

¥

—

¥842

¥842

—

—

11,268

11,268

(932)

(932)

—

—

—

10,00010,000

418

418

¥—

¥—

¥—

¥23,878¥21,268

¥328

¥328

Gain
(loss)

Fair value

Millions of yen

Commodity-related transactions (market transactions)
2016

2017
Type

Gain
(loss)

Contract/
notional
amountAmountdue after
one year

Fair value¥2,376—¥96¥2,376—¥96

Contract/
notional
amountAmountdue after
one year

Fair value

¥96

¥859

—

¥36

¥36

¥96

¥859

—

¥36

¥36

Gain
(loss)

Gain(loss)

Commodity
futures contract
BuyingTotal

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

40 SUZUKI MOTOR CORPORATION

Millions of yen
Fair value

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

Consolidated Financial Statements

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

—
—
—
—
—
—
—
—
—

*
*
*
*
*
*
*
*
*

2,223
400
¥54,032

—
—
—

*
*
¥231

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

Interest and currency related transactions

Millions of yen

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

Fair value

*

—

1,109

—

—

*

*

*

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

SUZUKI MOTOR CORPORATION 41

Consolidated Financial Statements

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

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

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

100,400

100,000

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

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

Common stock of the Company

Same as on the left

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

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

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

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

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

2017

2016

¥216,601¥266,490

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

42 SUZUKI MOTOR CORPORATION

1241¥216,613¥266,531

Consolidated Financial Statements

Long-term debts were as follows:
Millions of yen

2016

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

¥222,870¥262,797

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

7

16

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

12,54011,900¥235,419¥274,714

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

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

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

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

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

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

97,000¥222,878

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

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

¥552

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

97
¥649

Secured liabilities as of 31 March 2017:
Millions of yen

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

¥300

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

2016

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

¥250,000¥250,000

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

——¥250,000¥250,000

VarianceSUZUKI MOTOR CORPORATION 43

Consolidated Financial Statements

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

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

2017

2016

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

2017

2016

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

¥95,865¥94,487

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

1,698

1,537

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

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

5,254

4,856

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

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

473

(219)

¥99,021¥95,865

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

2017

2016

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

¥112,320¥108,729

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

(99,021)(95,865)

13,29912,864

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

49,75543,431

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

¥63,055¥56,296

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

¥63,099¥56,346

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

(44)

(50)

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

¥63,055¥56,29644 SUZUKI MOTOR CORPORATION

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

2016

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

¥8,706¥8,322

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

754

1,855

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

(1,698)(1,537)

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

1,875

987

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

(333)

(342)

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

110

48

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

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

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

2017¥(433)

2016¥(293)

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

(447)(14,782)

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

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

2017¥(2,591)2016¥(2,158)

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

(11,885)(11,437)

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

2016

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

45.4%

43.9%

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

37.6%

37.9%

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

17.0%

18.2%

100.0%

100.0%

Total

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

2016

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

mainly 0.15%

mainly 0.15%

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

mainly 1.80%

mainly 1.80%

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

SUZUKI MOTOR CORPORATION 45

Consolidated Financial Statements

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

2017

2016

¥54,224¥57,330

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

38,171

34,044

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

21,69819,383

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

12,586

13,655

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

3,210

3,606

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

66,25981,523

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

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

196,151

209,544

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

(38,934)(36,743)

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

¥157,217¥172,800¥(19,590)¥(39,938)

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

(8,682)(5,264)

Reserve for advanced depreciation of noncurrent assets....

(3,678)(3,265)

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

8,279(1,145)

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

(23,671)(49,614)

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

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

2017

2016

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

¥113,845¥116,378

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

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

(55)

(481)

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

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

2016

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

30.21%

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

4.15%

2.82%

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

—

2.64%

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

(1.31)%(0.21)%

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

33.06%

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

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

46 SUZUKI MOTOR CORPORATION

2017

2016

¥131,539¥131,031

Consolidated Financial Statements

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

2017

2016

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

¥693,952¥497,187

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

338,756

279,571

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

(79,920)(47,098)

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

(338,756)(279,571)¥614,031¥450,088

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

NOTE 14: Other comprehensive income
Millions of yen

2017

2016

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

¥62,839¥(78,299)

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

(51,445)(35,422)

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

11,393(113,722)

Valuation difference on available-for-sale securities

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

16,982

36,711

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

¥28,375¥(77,011)

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

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

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

770

(148)

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

(264)

119

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

¥505

¥(29)

¥3,634¥(101,996)

Deferred gains or losses on hedges

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

—

1,405

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

¥3,634¥(100,590)

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

¥(1,684)¥(15,274)

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

803

198

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

(881)(15,075)

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

225

4,513

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

¥(655)¥(10,562)

Adjustment for retirement benefit

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

¥(2,318)¥(3,411)

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

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

Consolidated Financial Statements

NOTE 15: Cash dividends
Resolutions

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

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

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

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

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

The plan adopted at
27 June 2013

The plan adopted at
27 June 2014

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

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

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

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

92,000 of Common stock of
the Company

49,800 of Common stock of
the Company

32,400 of Common stock of
the Company

Adoption date

20 July 201219 July 201322 July 2014

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

Period during which
subscription rights toshares can be exercised

From 21 July 2012 to 20 July
2042

From 20 July 2013 to 19 July
2043

From 23 July 2014 to 22 July
2044

Number of shares which
subscription rights toshares have not exercised

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

48 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

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

2016

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

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

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

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

2017
Automobile

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

Motorcycle

Marine & Powerproducts, etc.

Adjustment

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

204,159

46,375660,311

3,115,985

150,475
1,547
33,077

9,796
54
5,343

3,124
0
1,514

—
—
—

163,397
1,602
39,936

48,957

3,796

87

—

52,841

181,268

15,814

1,699—

198,782

Millions of yen

2016
Automobile

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

Motorcycle

Marine & Powerproducts, etc.

Adjustment

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

1,984,591

190,376

46,094

480,945

2,702,008

158,116
1,723
292

7,992
184
30

2,207
79
—

—
—
—

168,315
1,988
322

42,193

3,990

67

—

46,250161,679

7,531

2,324

—

171,535SUZUKI MOTOR CORPORATION 49

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

2017
Japan

Europe

Asia

Other
areas

Eliminations

Consolidated¥141,721¥¥3,169,542

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

¥1,293,486¥344,591¥1,389,743—

565,322

213,651

117,165546(896,685)—

1,858,809

558,242

1,506,909

142,267(896,685)

3,169,542

137,240

13,101

121,396

4,060(9,113)

266,685

Millions of yen

2016
Japan

Europe

Asia

Other
areas

Eliminations

Consolidated¥153,857¥¥3,180,659

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

¥1,301,207¥323,309¥1,402,285—

508,962

227,156

93,830542(830,491)—

1,810,169

550,465

1,496,116

154,399(830,491)

3,180,659

84,812

6,721

103,8232,431(2,481)

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

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

2017
Japan

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

¥1,037,546

India

Others¥1,018,813¥1,113,182

Consolidated¥3,169,542

Millions of yen

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

50 SUZUKI MOTOR CORPORATION

Japan

India

Others¥1,047,883¥980,640¥1,152,134

Consolidated¥3,180,659

Consolidated Financial Statements

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

Seimei Audit Corporation
Tokyo, Japan
29 June 2017

SUZUKI MOTOR CORPORATION 51

Company Outline
1. Company NameSUZUKI MOTOR CORPORATION

2. Date of Incorporation

March 1920
June
1954
October 1990

3. Head Office

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

4. Main Products

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

5. Fiscal Year-End

31 March

6. Public Accounting Firm

Seimei Audit Corporation

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

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

Total number of authorised shares

1,500 million

Total number of shares issued

491,000,000

Number of shareholders

26,548Stock Listing

Tokyo Stock Exchange

Securities Code7269

Ordinary General Meeting of Shareholders

June

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

Shareholders’ Register Manager

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

Number of Shares Held

Shareholding Ratio

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

31,352

7.1

Japan Trustee Services Bank, Ltd. (Trust Account)

18,106

4.1

Tokio Marine & Nichido Fire Insurance Co., Ltd.

17,961

4.1

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

16,000

3.6

The Shizuoka Bank, Ltd.

14,500

3.3

Resona Bank, Ltd.

13,000

2.9

JP Morgan Chase Bank 380055

9,697

2.2

(Thousands of Shares)(%)

Sompo Japan Nipponkoa Insurance Inc.

7,761

1.8

Nippon Steel & Sumitomo Metal Corporation

7,759

1.8

Japan Trustee Services Bank, Ltd. (Trust Account5)

7,281

1.7

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

52 SUZUKI MOTOR CORPORATION

Company Outline

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

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

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

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

[AMERICA]
USA
USA
CanadaMexicoColombia

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

India
India
India
PakistanIndonesia
ThailandThailandPhilippines
Cambodia
China
VietnamTaiwanMyanmar

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

[OCEANIA]
Australia
New Zealand

Suzuki Australia Pty. Ltd.
Suzuki New Zealand Ltd.

[AFRICA]South Africa

Suzuki Auto South Africa (Pty.) Ltd.

Marketing Subsidiaries
43 directly managed overseas marketing companies

SUZUKI MOTOR CORPORATION 53