口434 (215 + 4 + 215) x 280 mm----W-

三

ANNUAL REPORT2016

SUZUKI11

SUZUKI MOTOR CORPORATIONANNUAL REPORT 2016
Printed ,n Japanf

SUZUKI MOTOR CORPORATION
300 Takatsuka-Cho,
Minami-Ku, Hamamatsu-shi,
Shizuoka, Japan 432-8611
http://www.globalsuzuki.com

111

FINANCIAL SECTIONCONTENTSManagement Discussion and Analysis......................................................... 31
Five-Year Summary...................................................................................... 33
Consolidated Financial Statements.............................................................. 34
Consolidated Balance Sheets.............................................................................. 34
Consolidated Statements of Income andConsolidated Statements of Comprehensive Income..................................... 36
Consolidated Statements of Changes in Net Assets............................................. 38
Consolidated Statements of Cash Flows.............................................................. 40
Notes to Consolidated Financial Statements....................................................... 41
Independent Auditor’s Report.............................................................................. 66

30 SUZUKI MOTOR CORPORATION

Management Discussion and Analysis

Management Discussion and Analysis

1. Operating results(1) The operating results by business segment(a) Motorcycle
The net sales decreased by ¥16.6 billion (6.6%) to ¥233.9 billion year-on-year mainly owing to the decrease in Indonesia,
despite sales contribution of the new road sportbike GSX-S1000 and the Indian Gixxer. The operating loss of ¥0.7 billion in theprevious fiscal year became an operating loss of ¥10.2 billion partly owing to the quality-related expenses. The Company will
strive to eliminate its loss-making structure through selection and concentration on the motorcycle business.
(b) Automobile
The Company made efforts to expand its sales and strengthen the products, such as receiving high appraisal in Japan for the
Alto and Alto Lapin minicars including the RJC Car of the Year award (the second consecutive win for the Company following the Hustler minicar in the previous year), and launching Solio, Escudo (Vitara), Ignis, and Baleno compact cars in Japan.
However, owing to the hike in the rate of the light motor vehicle tax and decrease in the OEM sales, the Japanese domestic
net sales decreased year-on-year. The overseas net sales increased year-on-year mainly owing to the sales contribution of theVitara in Europe and the increase in India and Pakistan. Consequently, the net sales of the automobile business increased by¥176.5 billion (6.5%) to ¥2,878.5 billion year-on-year. The operating income increased by ¥20.8 billion (12.1%) to ¥192.6 billion
year-on-year mainly owing to the increase in the income in India.
(c) Marine and Power products, etc.
The net sales increased by ¥5.3 billion (8.3%) to ¥68.3 billion year-on-year mainly owing to the increase in the sales of outboard motors in the US. The operating income increased by ¥4.6 billion (55.8%) to ¥12.9 billion year-on-year.

(2) The operating results by geographical areas(a) Japan
The net sales increased by ¥45.2 billion (2.6%) to ¥1,810.2 billion year-on-year mainly owing to expansion of triangular trade
via Japan. The operating income decreased by ¥5.9 billion (6.5%) to ¥84.8 billion year-on-year mainly owing to the increase in
the research and development expenses and the depreciation.
(b) Europe
The net sales increased by ¥114.4 billion (26.2%) to ¥550.5 billion year-on-year mainly owing to the sales contribution of allnew compact SUV Vitara and expansion of triangle trade via Japan. The operating income increased by ¥1.6 billion (31.4%)
to ¥6.7 billion year-on-year.
(c) Asia
The net sales increased by ¥189.9 billion (14.5%) to ¥1,496.1 billion year-on-year mainly owing to the increase in the sales ofautomobile in India and Pakistan, despite the decrease of the sales in Indonesia. The operating income increased by ¥22.2
billion (27.2%) to ¥103.8 billion year-on-year mainly owing to the increase in the income in India and Pakistan.
(d) Other areas
The net sales decreased by ¥4.8 billion (3.0%) to ¥154.4 billion year-on-year partly owing to the adjusting stock of motorcycle,
despite the increase in the sales of outboard motors in the US. The operating income decreased by ¥0.2 billion (7.2%) to ¥2.4
billion year-on-year owing to the decrease of income in Latin America and others.

(3) Selling, general and administrative expenses
In the current consolidated fiscal year, the amount of selling, general and administrative expenses increased of ¥25.8 billion (4.0%)
to ¥671.6 billion year-on-year mainly owing to increase of sales expenses such as advertising expenses.

(4) Other income and expenses
In the current consolidated fiscal year, the net amount of other income and expenses was a gain of ¥50.3 billion, which increased by ¥36.5
billion year-on-year. This was due to increase of gain on sales of investment securities from the previous fiscal year.

SUZUKI MOTOR CORPORATION 31

Management Discussion and Analysis(5) Forecasts for the next fiscal year

For the next fiscal year, the Company prospects increase in sales of automobiles mainly in Europe and India. However, the Company prospects decrease in sales and income results owing to the appreciation of the yen. The Group will work as one to reformin every field and pursue the business activities to accomplish more than the below forecasts for the consolidated operating
results.
(Forecasts for the consolidated operating results-First Half)
Net Sales¥1,500.0 billion(down 3.6% year-on-year)
Operating income¥90.0 billion(down 11.0% year-on-year)
Net income attributable to¥46.5 billion(down 41.2% year-on-year)
owners of the parent(Forecasts for the consolidated operating results-Full Year)Net Sales¥3,100.0 billion(down 2.5% year-on-year)
Operating income¥180.0 billion(down 7.8% year-on-year)
Net income attributable to¥93.0 billion(down 20.3% year-on-year)
owners of the parent
Foreign exchange rates 105 yen/US$, 120 yen/Euro, 1.60 yen/Indian Rupee		
0.80 yen/100 Indonesian Rupiah, 3.00 yen/ Thai Baht
* The forecasts for the next fiscal year mentioned above are based on currently available information and assumptions,contain risks and uncertainty, and do not constitute guarantees of future achievement. Please note that the actual results
may greatly vary by the changes of various factors. Those factors, which may influence the actual results, include economic
conditions and the trend of demand in major markets and the fluctuation of foreign exchange rate (mainly US dollar/Yen rate,
Euro/Yen rate and Indian Rupee/Yen rate).

2. Liquidity and capital resources
Cash flow

Cash flow provided by operating activities for fiscal year 2015 (April 2015 to March 2016) amounted to ¥294.1 billion (¥255.0 billion was provided in the previous fiscal year). In investing activities, ¥242.4 billion was used for purchase of short-term investment
securities, the acquisition of property, plant and equipment and other purposes (¥120.9 billion was used in the previous fiscal
year). As a result, free cash flow amounted to ¥51.7 billion of positive (¥134.1 billion of positive for the previous fiscal year). In
financing activities, ¥520.4 billion was used for purchase of treasury stock and other purposes (¥84.5 billion was provided in theprevious fiscal year).
As a result, the balance of cash and cash equivalents as of 31 March 2016 amounted to ¥450.1 billion and decreased by ¥482.2
billion from the end of previous fiscal year.

3. Significant accounting policies
For information regarding significant accounting policies, please refer to the Notes to Consolidated Financial Statements.
* An amount less than 100 million yen has been rounded off in “Management discussion and analysis” section.

32 SUZUKI MOTOR CORPORATIONFive-Year Summary
SUZUKI MOTOR CORPORATIONCONSOLIDATED
Thousands of
US dollars(except per
share amounts)

Millions of yen(except per share amounts)

2016

2015

2014

2013

2012

2016

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

¥3,180,659¥3,015,461¥2,938,314¥2,578,317¥2,512,186$28,227,361

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

116,660

96,862

107,484

80,38953,887

1,035,323

Primary (yen / US dollars).........

234.98172.67

191.60143.31

96.06

2.09

Fully diluted (yen / US dollars)..

234.92172.63191.57131.67

88.28

2.09

Years ended 31 March

Net income per share:

Cash dividends per share(yen / US dollars)..........................

32.00

27.00

24.00

18.00

15.00

0.28

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

1,187,703

1,701,390

1,494,357

1,298,553

1,111,757

10,540,496

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

1,632,630

2,008,729

1,790,832

1,560,218

1,509,568

14,489,091

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

2,702,008

3,252,800

2,874,074

2,487,635

2,302,439

23,979,484

Depreciation and amortization.....

168,315

134,377

117,188

93,680103,117

1,493,749

NON-CONSOLIDATED
Thousands of
US dollars(except per
share amounts)

Millions of yen(except per share amounts)

2016

2015

2014

2013

2012

2016

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

¥1,609,065¥1,663,147¥1,498,853¥1,422,595¥1,383,269$14,279,954

Net income...................................

78,59351,24867,21936,405

15,846

697,490

Years ended 31 March

Net income per share:
Primary (yen / US dollars).........

158.2891.34

119.81

64.89

28.25

1.41

Fully diluted (yen / US dollars)..

158.2591.32

119.79

59.64

25.98

1.40

Cash dividends per share(yen / US dollars)..........................

32.00

27.00

24.00

18.00

15.00

0.28

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

452,701

937,767

859,224

761,353

703,292

4,017,587

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

669,423

1,191,614

1,070,668

921,352

921,669

5,940,921

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

1,519,889

2,096,545

1,850,068

1,641,700

1,597,903

13,488,548

Depreciation and amortization.....

40,93537,42133,60535,62638,532363,288

Note: Yen amounts are translated into US dollars for convenience only, at ¥112.68 = US$1, the prevailing exchange rate as of 31 March 2016.

SUZUKI MOTOR CORPORATION 33

Consolidated Financial Statements
Consolidated Balance Sheets
As of 31 March 2016 and 2015

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

Thousands of
US dollars

Millions of yen

2016

2015

2016

¥ 450,088¥ 932,261$ 3,994,398

335,343

316,826

2,976,072

ASSETS
Current assets:
Cash and cash equivalents *NOTE 11 ....................................
Receivables:
Notes and accounts receivable-trade *NOTE 5 .................
Allowance for doubtful accounts....................................

(5,528)(4,156)(49,061)

Inventories...........................................................................

286,301

314,391

2,540,836

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

116,378

115,015

1,032,819

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

450,046

334,391

3,994,027

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

1,632,630

2,008,729

14,489,091

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

255,013259,540

2,263,163

NOTE 6

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

416,217403,922

3,693,799

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

1,286,385

1,280,563

11,416,272

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

408,683

391,797

3,626,939

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

50,36170,456446,938

2,416,660

2,406,280

21,447,114

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

(1,659,584)(1,610,388)(14,728,295)

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

757,076795,892

6,718,818

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

226,516

341,325

2,010,260

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

46,25059,544410,462..................................

50

1,860

447

Property, plant and equipment:

Investments and other assets:

Assets for retirement benefits *NOTE 8Deferred tax assets *NOTE 9..................................................

14,773

19,985

131,111

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

24,70925,462219,292

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

312,301

448,179

2,771,574

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

¥2,702,008¥3,252,800$23,979,484

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

34 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

Thousands of
US dollars

Millions of yen

2016

2015

2016

¥ 201,507¥ 177,805$ 1,788,315

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term loans payable *NOTE 5 and 6 ..................................
Current portion of long-term loans payable *NOTE 5 and 6......

64,982

104,145576,703

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

402,624

479,950

3,573,165
568,476

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

64,055—

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

29,486

21,797

261,686

Accrued expenses *NOTE 5 ...................................................

183,695

181,217

1,630,239

66,03260,305586,013

481

6,190

4,274

Provision for product warranties *NOTE 4 ..............................
Deferred tax liabilities *NOTE 9 ..................................................
Others *NOTE 6.......................................................................

133,089

121,188

1,181,131

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

1,145,956

1,152,601

10,170,006

262,797272,717

2,332,249..............................

56,346

40,791500,061

Provision for disaster *NOTE 4 ................................................

3,056

8,923

27,122

Noncurrent liabilities:
Long-term loans payable *NOTE 5 and 6 ..................................
Liabilities for retirement benefits *NOTE 8Deferred tax liabilities *NOTE 9..............................................

7,484

43,766

66,418Others *NOTE 6........................................................................

38,66332,609343,129

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

368,348

398,808

3,268,981

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

1,514,305

1,551,409

13,438,988

Net assets:
Shareholders’ equity: *NOTE 12
Capital stock:
Common stock: Authorized-1,500,000,000 shares Issued,
as of 31 March 2016 – 491,000,000...............................

138,014—1,224,838

as of 31 March 2015 – 561,047,304...............................

—

138,014—

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

144,166

144,364

1,279,428

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

913,656

1,082,440

8,108,421

Treasury stock *NOTE 14 .........................................................

(191,169)(62)(1,696,568)

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

1,004,668

1,364,757

8,916,119

77,624

158,788688,897

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

536

679

4,762

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

(115,551)(42,997)(1,025,481)

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

(9,580)864(85,027)

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

(46,970)

117,333(416,849)

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

188

250

1,676

Non-controlling interests.................................................
Total net assets

229,816

219,048

2,039,549¥1,187,703¥1,701,390$10,540,496¥2,702,008¥3,252,800$23,979,484

Commitments and contingent liabilities *NOTE 17
Total liabilities and net assets.............................................

SUZUKI MOTOR CORPORATION 35

Consolidated Financial Statements

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)Years ended 31 March 2016 and 2015

Thousands of
US dollars

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2016

2015

2016

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

¥3,180,659¥3,015,461$28,227,361

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

2,313,779

2,190,309

20,534,071

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

866,879

825,152

7,693,290

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

671,571645,727

5,959,990

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

195,308

179,424

1,733,300

Other income (expenses):
Interest and dividend income............................................

20,88525,259185,355

Interest expense.................................................................

(6,381)(9,433)(56,631)

Equity in earnings (losses) of affiliates...............................

(2,492)(1,454)(22,119)

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

38,311(549)

339,999

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

245,631

193,246

2,179,903

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

87,27970,589774,576

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

5,051(4,970)44,832

92,33065,619819,408

Income taxes: *NOTE 9

Net income..........................................................................

153,300

127,627

1,360,495

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

36,64030,765

325,171

Net income attributable to owners of the parent.............

¥ 116,660

96,862$ 1,035,323¥

Yen

US dollars

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

¥

234.98¥172.67$

2.09

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

234.92172.63

2.09

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

32.00

27.00

0.28

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

36 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements(Consolidated Statements of Comprehensive Income)Years ended 31 March 2016 and 2015

Thousands of
US dollars

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2016

2015

2016

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

¥153,300¥127,627$1,360,495

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

(77,011)57,734(683,453)

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

(29)

587

(261)

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

(100,590)

46,774(892,708)

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

(10,562)(3,005)(93,737)

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

(3,411)

3,489(30,277)

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

(191,605)

105,579(1,700,437)

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

(38,304)

233,206(339,942)

Comprehensive income attributable to owners of the parent(51,260)

178,312(454,919)

Comprehensive income attributable to non-controlling interests

12,95554,894

114,977

Comprehensive income attributable to:

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

SUZUKI MOTOR CORPORATION 37

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Millions of yen

Years ended 31 March 2016 and 2015

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES

Thousandsof sharesof commonstock

Total othercomprehensive income

Subscription
rights tosharesNon-controlling interests¥(57)¥35,846¥168¥167,464(8,118)

—

—

—

—

¥144,364 ¥1,000,437¥(57)¥35,846¥168¥167,464(13,464)

—

—

—

—

—

96,862

—

—

—

—

—

—

(1,384)

—

—

—

—

—

—

—

—

(30)

—

—

—

—

—

(9)

—

25

—

—

—

—

—

9

(9)

—

—

—

—

—

—

—

—

—

81,487

81

51,583———82,003(4)

81,487

81

51,583561,047¥138,014¥144,364 ¥1,082,440¥(62)¥117,333¥250¥219,048———(16,156)

—

—

—

—

—

—

—

116,660

—

—

—

—

Capitalstock

Capitalsurplus561,047¥138,014¥144,364 ¥1,008,555

Cumulative effects ofchanges in accounting
policies.................................

——

Balance as of 31 March2014 reflected changes
in accounting policies

561,047¥138,014

—

—

—

—

—

—

Balance as of
31 March 2014

Dividends from surplus...
Net income attributableto owners of the parent...
Effects of changes offiscal year......................
Purchase of treasury stock...
Disposal of treasury stock...
Transfer to capital surplus
from retained earnings.........
Net changes of items otherthan shareholders’ equity.....
Total changes during the
fiscal year.........................
Balance as of
31 March 2015
Dividends from surplus...
Net income attributable toowners of the parent.......
Purchase of treasury
stock *NOTE 14....................
Disposal of treasury stock...
Retirement of treasury
stock *NOTE 14 ..........................
Transfer to capital surplus
from retained earnings.......
Capital increase of consolidated subsidiaries..............
Net changes of items otherthan shareholders’ equity....
Total changes during the
fiscal year.........................
Balance as of
31 March 2016

38 SUZUKI MOTOR CORPORATION

Retainedearnings—

Treasury
stock

—

—

—

— (460,479)

—

—

—

—

—

(95)

—

180

—

—

—

(70,047)—(269,191)—

269,191

—

—

—

—

—

269,287(269,287)

—

—

—

—

—

—

(198)

—

—

—

—

—

—

—

—

—

—

(164,304)(62)

10,768

—

—

(198)

(168,783) (191,107)(164,304)(62)

10,768491,000¥138,014¥144,166¥913,656 ¥(191,169)¥(46,970)¥188¥229,816

Consolidated Financial Statements

Thousands of US dollars
Thousandsof sharesof commonstock

Balance as of
31 March 2015

Capitalstock

CapitalsurplusRetainedearnings

561,047 $1,224,838 $1,281,192$9,606,323

Treasurystock

Total othercomprehensive income$(551) $1,041,302

Subscription
rights tosharesNon-controlling interests$2,226 $1,943,983

Dividends from surplus...

—

—

—

(143,383)

—

—

—

—

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

—

—

—

1,035,323

—

—

—

—

Purchase of treasury
stock *NOTE 14....................

—

—

—

— (4,086,612)

—

—

—

Disposal of treasury stock...

—

—

(847)

—

1,601

—

—

—

Retirement of treasury
stock *NOTE 14...........................

(70,047)— 2,388,993

—

—

—

Transfer to capital surplus
from retained earnings...

——

2,389,841(2,389,841)

—

—

—

—

Capital increase of consolidated subsidiaries.....

——(1,763)

—

—

—

—

—

Net changes of items
other than shareholders’equity...............................

—

—

—

—

—

(1,458,151)(550)

95,565

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

——(1,763)(1,497,901) (1,696,017) (1,458,151)(550)

95,565491,000 $1,224,838 $1,279,428$8,108,421 $(1,696,568) $(416,849)

Balance as of
31 March 2016

— (2,388,993)$1,676 $2,039,549

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

SUZUKI MOTOR CORPORATION 39

Consolidated Financial Statements

Consolidated Statements of Cash Flows
Years ended 31 March 2016 and 2015

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIESCash 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............................
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
Increase (decrease) in cash and cash equivalents
resulting from change of fiscal year of subsidiaries
Increase (decrease) in cash and cash equivalents
resulting from change of scope of consolidation
Cash and cash equivalents at end of period *NOTE 11

Thousands of
US dollars

Millions of yen

2016

2015

¥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¥193,246
134,377969(867)(25,259)
9,433
4,804
1,454
102
—
(9,242)(37,179)
44,3902,542
15,838334,61125,347(8,108)(96,813)
255,037$2,179,903
1,493,749
2,861(9,137)(185,355)
56,631
41,071
22,119(743)(326,239)
30,87673,6505,266
131,856(325,079)
3,191,431
180,413(69,520)(692,319)
2,610,004(61,915)
28,596(274,553)
173,478(162,574)
54,533(242,435)(79,661)
136,236(193,152)
206,239(192,694)
2,123(120,909)(549,481)
253,789(2,436,578)
1,539,563(1,442,796)
483,966(2,151,536)

27,08845,400(108,365)(460,479)(16,156)(7,504)(344)(520,361)(13,471)(482,172)
932,261(26,353)
173,000(45,191)(30)(13,466)(3,456)(28)
84,472
5,042
223,643
710,611240,404
402,910(961,710)(4,086,612)(143,381)(66,599)(3,057)(4,618,044)(119,554)(4,279,131)
8,273,530—(2,039)——¥450,08845¥932,261—$3,994,398

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

40 SUZUKI MOTOR CORPORATION

2016

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. For the convenience of the readers, the consolidated
financial statements, including the opening balance of shareholders’ equity, have been presented in US dollars by translating all
Japanese yen amounts on the basis of 112.68 to US$1, the rate of exchange prevailing as of 31 March 2016. Consequently, thetotals shown in the consolidated financial statements (both in yen and in US dollars) do not necessarily agree with the sum of theindividual amounts.

NOTE 2: Summary of significant accounting policies(a) Principles of consolidation
The consolidated financial statements for the years ended 31 March 2016 and 2015 include the accounts of the Group, andthe numbers of consolidated subsidiaries were 136 and 133 respectively. In addition, the numbers of investments in affiliatedcompanies for the years ended 31 March 2016 and 2015 were 33 and 35 respectively. All significant inter-company accounts
and transactions are eliminated in consolidation. Investments in affiliated companies are accounted for by the equity method.
The difference at the time of acquisition between the cost and underlying net equity of investments in consolidated subsidiaries (goodwill) and in affiliated companies accounted for under the equity method is, as a rule, amortized on a straight-line
basis over a period of five years after appropriate adjustments.
The account settlement date of 23 consolidated subsidiaries is December 31, however Magyar Suzuki Corporation Ltd. and21 others are consolidated based on the financial statements of provisional account settlement as of March 31. 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.

SUZUKI MOTOR CORPORATION 41

Consolidated Financial Statements(i) Provision for recycling expenses
The provision is appropriated for an estimated expense related to the recycle of products of the Company based on actual
sales.
( 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
recognize 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 recognized.
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 utilize 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.
42 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements(o) Income taxes
The provision for income taxes is computed based on the income before income taxes included in the consolidated statements of income. The asset and liability approach is adopted to recognize deferred tax assets and liabilities for the expected
future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.
In making a valuation for the 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 since the fiscal year
ended 31 March 2012.
(p) Retirement benefits
With respect to calculation of retirement benefit obligations, benefit formula basis method is used to attribute expected benefit
to period up to the end of this fiscal year. With respect to past service costs, they are treated as expense on a straight line basis over the certain years within the period of average length of employees’ remaining service years at the time when it occurs.
With respect to the actuarial gain or loss, the amounts, prorated on a straight line basis over the certain years within the periodof average length of employees’ remaining service years in each year in which the differences occur, are respectively treatedas expenses from the next term of the year in which they arise.
Retirement benefit cost and retirement benefit obligation are calculated based on the actuarial assumptions, which include
discount rate, assumed return of investment ratio, revaluation ratio, salary rise ratio, retirement ratio and mortality ratio. Discount rate is decided based on yield on low-risk and long-term bonds, and assumed return of investment ratio is decided
based on the investment policies of pension assets of each pension system etc.
Decreased yield on long-term bond leads to a decrease in discount rate and it has an adverse influence on the calculation ofretirement benefit cost. However, the pension system adopted by the Company has a cash balance type plan, and thus therevaluation ratio, which is one of the base ratios, can reduce adverse effects caused by the decrease in discount rate.
If the investment yield of pension assets is less than the assumed return of investment ratio, it will have an adverse effect on
the calculation of retirement benefit cost. However, by 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: Changes in accounting policies(a) Application of Accounting Standard for Business Combinations
The “Accounting Standard for Business Combinations” (Accounting Standards Board of Japan (ASBJ) Statement No. 21, 13 September 2013, hereinafter the “Business Combinations Standard”), the “Accounting Standard for Consolidated Financial Statements”(ASBJ Statement No. 22, 13 September 2013, hereinafter the “Consolidated Financial Statements Standard”), the “AccountingStandard for Business Divestitures” (ASBJ Statement No. 7, 13 September 2013, hereinafter the “Business Divestitures Standard”)
and others have been applied since beginning of this consolidated fiscal year. Accordingly, the Company’s accounting policies
have been changed; the difference arising from a change in ownership interest in a subsidiary when the Company continues tohave control is recorded as capital surplus, acquisition-related costs are recognized as expenses in the consolidated fiscal year
when they are incurred. Also, regarding business combinations to be performed at and after the beginning of this consolidated fiscal year, a method was changed with respect to the retrospective adjustment of the purchase price allocation based on provisional
accounting applicable to the consolidated financial statements of the fiscal period in which the business combination occurred. In
addition, the Company has changed expression of net income, etc. and changed minority interests to non-controlling interests. To
reflect these changes in presentation, consolidated financial statements in the previous fiscal year have been reclassified.
In accordance with transitional treatments stipulated in Paragraph 58-2 (4) of the Business Combinations Standard, Paragraph44-5 (4) of the Consolidated Financial Statements Standard, and Paragraph 57-4 (4) of the Business Divestitures Standard, theBusiness Combinations Standard and others have been applied from the beginning of this consolidated fiscal year.
In the consolidated statements of cash flows in this consolidated fiscal year, cash flow of acquisition or sale by the Company of thesubsidiary’s shares which would not change the scope of consolidation was included in “Net cash provided by (used in) financing
activities” while cash flow of costs related to acquisition by the Company of the subsidiary’s shares which would change the scopeof consolidation, and cash flow of costs related to acquisition or sale by the Company of the subsidiary’s shares which would notchange the scope of consolidation, were included in “Net cash provided by (used in) operating activities”.
The effect in the consolidated financial statements as a result of the adoption of these accounting standards is insignificant in thisconsolidated fiscal year.
SUZUKI MOTOR CORPORATION 43

Consolidated Financial Statements(b) New accounting standards not yet applied“Implementation Guidance on Recoverability of Deferred Tax Assets” (ASBJ Statement No.26, 28 March, 2016)
a. Overview
The “Implementation Guidance on Recoverability of Deferred Tax Assets” groups companies into five categories and withrespect to guidelines related to the recoverability of deferred tax assets, principally those provided in the Auditing Guidance No.66; “Audit Treatment for Judgment of Recoverability of Deferred Assets”. The Implementation Guidance basicallycontinues to apply the framework for handling estimates of the amount of deferred tax assets recorded according to thesecategories, making several necessary revisions with respect to the below accounting treatments.
1.) Accounting treatments of entities not satisfying any of the category criteria from “Category 1” to “Category 5”2.) Category criteria of “Category 2” and “Category 3”
3.) Accounting treatments of unscheduled deductible temporary differences for entitles in “Category 2”
4.) Accounting treatments for reasonably estimable period for taxable income before temporary differences for entitles in“Category 3”5.) Accounting treatments for entitles satisfying the category criteria of “Category 4” and also falling in “Category 2” or“Category 3”
b. Application date
These revisions will be applied from the beginning of consolidated fiscal year on and after 1 April 2016.
c. Effect of applying accounting standard
The amount of the effect is currently under assessment.

NOTE 4: Changes in Accounting Estimates[Provision for product warranties]
The Company changed warranty estimation method because future after service cost came to be estimated more accurately inthis consolidated fiscal year.
The effect in the consolidated financial statements is insignificant in this consolidated fiscal year.
[Provision for disaster]
The Company changed estimation method of provision for disaster mainly owing to changed relocation project of plants andfacilities, etc. in this consolidated fiscal year.
As a result of this change in estimation method, the amounts of operating income and income before income taxes etc. increasedby ¥5,359 million respectively compared to the previous method.
[Provision for recycling expenses]
The Company reversed provision for recycling expenses due to insignificant amount of estimated recycling expenses for motorcycle related to the provision and insignificant results of using the recycling systems in this consolidated fiscal year.
The effect in the consolidated financial statements is insignificant in this consolidated fiscal year.

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 balanceof 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 to listed
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 the actual demand in line with our rules and regulations which set out the authority to trade. In addition, in using derivatives, the Groupdeals 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 a financial 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 by rational
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) Derivative transactions,contract amounts do not present market risks for the derivative transactions.

44 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 2016 and 2015 were as follows. Financial instruments whose fair value cannot be reliably measured are not included in the below table.
Millions of yen
2015

2016

(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) Long-term loans payable
Total of liabilities
Derivatives
Hedge accounting is applied
Hedge accounting is not applied

Carrying
amount¥497,187
335,343

Fair value¥497,187
337,385—
2,041

Carrying
amount¥457,513
316,826

Difference¥

Fair value

Difference¥457,513
318,567

¥

—
1,741

488,274588
1,321,394
402,624
201,507
64,982
183,695
262,797
1,115,607

488,274
1,024
1,323,872
402,624
201,507
64,924
183,695
260,818
1,113,569

—
436
2,477
—
—
58
—
1,979
2,037

1,007,347
616
1,782,304
479,950
177,805
104,145
181,217
272,717
1,215,834

1,007,347
669
1,784,098
479,950
177,805
103,768
181,217
268,346
1,211,087

—
52
1,794
—
—
377
—
4,370
4,747

1,340
736

1,340
736

—
—

1,072
1,603

1,072
1,603

—
—

Thousands of US dollars
2016(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) Long-term loans payable
Total of liabilities
Derivatives
Hedge accounting is applied
Hedge accounting is not applied

Carrying
amount$4,412,385
2,976,072

Fair value

Difference$4,412,385
2,994,193$

4,333,282
5,225
11,726,965
3,573,165
1,788,315
576,703
1,630,239
2,332,249
9,900,672

4,333,282
9,096
11,748,956
3,573,165
1,788,315
576,183
1,630,239
2,314,682
9,882,587—
3,870
21,991——519—
17,56618,085

11,898
6,533

11,898
6,533

—
—

—
18,120* Assets or liabilities derived from derivatives are shown on a net basis and net liabilities are shown as ( ).

SUZUKI MOTOR CORPORATION 45

Consolidated Financial Statements*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.
Derivatives:
Please refer to Note 5 (d) Derivative transactions.
*2. Financial instruments whose fair value cannot be reliably determined
Thousands of
US dollars

Millions of yen

2016

2015

2016

Unlisted stock other than stocks of affiliates¥17,882¥18,748$158,701

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

17,18823,084

152,547

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

210

119

1,871

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.

46 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements*3. The amounts to be redeemed after the account settlement date of monetary receivables and available-for-sale securities
Millions of yen
2015

2016
Over 1 year,
Within5 years

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

Over 5 years,
Within
10 years

Over 1 year,
Within5 years

Within1 year—¥ —¥ 457,513

244,470

90,513360

279,571¥1,021,229—¥90,513—¥360¥ 497,187¥¥

Over 5 years,
Within
10 years—¥ —241,373

75,017435

685,647¥1,384,534—¥75,017—¥435

Thousands of US dollars
2016Over 1 year,
Within5 years

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

Over 5 years,
Within
10 years$4,412,385

$

—

$

—

2,169,598

803,275

3,198

2,481,109$9,063,093—$803,275—$3,198(c) Securities
a. Available-for-sale securities with market value
Millions of yen

2016
Acquisition
cost

2015

Carrying
AmountDifference

Acquisition
cost

Carrying
AmountDifference¥226,859

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

¥ 50,789¥149,942¥ 99,152¥ 93.769¥ 320,628

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

—

—

—

—

—

—

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

302,911332,224

29,313249,238

263,329

14,090Sub-Total¥353,700¥482,166¥128,465¥343,008¥ 583,957¥240,949¥¥¥

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

¥

6,549

¥

6,107

¥

(441)

1,549

1,191

(358)

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

—

—

—

—

—

—

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

—

—

—

422,198

422,198—

Sub-Total

¥

Total

¥360,249

6,549

¥

6,107

¥488,274(441)¥423,748¥ 423,389¥¥128,024¥766,756¥1,007,347¥240,591¥(358)

SUZUKI MOTOR CORPORATION 47

Consolidated Financial Statements

Thousands of US dollars

2016
Acquisition
cost

Carrying
AmountDifference

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

$ 450,744 $ 1,330,690$ 879,945———

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

2,688,241

2,948,388

260,147

Sub-Total$ 3,138,985 $ 4,279,078$1,140,092

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

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

$

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

58,120$

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

54,203 $
—

—
$

Total

$ 3,197,106 $ 4,333,282

58,120———Sub-Total$(3,917)—54,203 $(3,917)$1,136,175

b. Available-for-sale securities soldThousands of
US dollars

Millions of yen

2016

2015

2016

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

¥247,317¥206,255$2,194,867

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

36,760—326,239c. Marketable securities impaired / Loss on valuation of securities
Year ended 31 March 2015
Not applicable.
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 recognizes 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, the Group recognizes impairment to the extent deemed necessary based on recoverability.
Year ended 31 March 2016
The Group recognized impairment of 1,337 million yen (11,871 thousand US dollars) 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 recognizes 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, the Group recognizes impairment to the extent deemed necessary based on recoverability.

48 SUZUKI MOTOR CORPORATION

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

Currency related transactions (non-market transactions)
2015

2016
Type
Foreign currency
forward contracts
Selling
USD
Buying
JPY
EUR
USD
MXN
Total

Contract/
notional
amountAmountdue after
one year

Fair value¥ 5,444

—

¥175

¥175

¥

3,733
766
83
57
¥10,085

—
—
—
—
—

160
36
(0)
(1)
¥370

160
36
(0)
(1)
¥370

Gain
(loss)

Contract/
notional
amountAmountdue after
one year

Fair value

—

—

¥ —

¥ —

14,550
1,694
3,746
—
¥19,990

—
—
—
—
—

(43)
(16)
394
—
¥333

(43)
(16)
394
—
¥333

Gain
(loss)

Thousands of US dollars
Type
Foreign currency
forward contracts
Selling
USD
Buying
JPY
EUR
USD
MXN
Total

Contract/
notional
amount2016
Amountdue after
Fair value
one yearGain(loss)$48,320—$1,560$1,56033,131
6,799
738
512
$89,502

—
—
—
—
—

1,420
324
(5)
(12)
$3,287

1,420
324
(5)
(12)
$3,287

Interest and currency related transactions (non-market transactions)Type
Cross currencyinterest rate swap
Pay floatingreceive floating
Pay INR
receive USD
Pay fixed
receive floating
Pay IDR
receive JPY
Pay fixed
receive floating
Pay IDR
receive USD
Total

Millions of yen
Contract/
notional
amount2015
Amountdue after
Fair value
one year¥842¥ 5,568¥ 2,784¥1,323¥1,323418

418

10,00010,000

(0)

(0)

(932)
¥328

(932)
¥328

12,017¥27,585

12,017¥24,8010¥1,3230¥1,323Contract/
notional
amount2016
Amountdue after
Fair value
one year¥ 2,610

¥

—

¥842

10,00010,00011,268¥23,878

11,268¥21,268

Gain(loss)

Gain(loss)SUZUKI MOTOR CORPORATION 49

Consolidated Financial Statements

Thousands of US dollars
2016
Type
Cross currencyinterest rate swap
Pay floatingreceive floating
Pay INR
receive USD
Pay fixed
receive floating
Pay IDR
receive JPY
Pay fixed
receive floating
Pay IDR
receive USD
Total

Contract/
notional
amountAmountdue after
one year$ 23,170$

Fair value

Gain(loss)—$7,473$7,47388,74688,746

3,717

3,717

100,000$211,916

100,000$188,746(8,272)$2,917(8,272)$2,917
Millions of yen

Commodity-related transactions (market transactions)Type
Commodity
futures contract
Buying
Total

Contract/
notional
amount

¥859
¥859

2016
Amountdue after
Fair value
one year

—
—

¥36
¥36

Gain
(loss)¥36¥36

Contract/
notional
amount¥1,304¥1,3042015
Amountdue after
Fair value
one year
—
—

¥(54)
¥(54)

Gain
(loss)

¥(54)
¥(54)

Thousands of US dollars
Type
Commodity
futures contract
Buying
Total

Contract/
notional
amount$7,625$7,6252016
Amountdue after
Fair value
one year

—
—

$328
$328

Gain
(loss)$328$328

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.

50 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

b. Derivative transactions to which hedge accounting is applied
Currency related transactions

Millions of yen

2015
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¥ 8,034—¥ 6,790—¥106
EUR
21,695
—
5,738
—
227
CAD
414
—
296
—
3
AUD
4,528
—
2,897
—
(81)
NZD
1,236
—
270
—
(1)
GBP
40
—
575
—
35
MXN
1,518
—
1,657
—
(17)
Buying (Principal hedged item: Accounts payable-trade)
THB
—
—
4,289
—
(41)
EUR
11,083—515—
1Foreign currency forward contracts (Exceptional hedge accounting)Selling (Principal hedged item: Accounts receivable-trade)
USD
—
—
961
—
*
EUR
19,354—
20,169
—
*
CAD
51
—
353
—
*
AUD
2,883
—
3,417
—
*
NZD
375
—
308
—
*
GBP
40
—
195
—
*
MXN
492
—
597
—
*
CNY
720
—
2,371
—
*
Buying (Principal hedged item: Accounts payable-trade)
THB
—
—
2,223
—
*
JPY
895
—
400
—
*
EUR
2,726
—
—
—
*
USD
3,649
—
—
—
*
Total
¥79,742—¥54,032—¥231

Fair value

¥ 42
1,012
11
141
3
1
14
—
(88)

*
*
*
*
*
*
*
*
*
*
*
*
¥1,139Thousands of US dollars
2016
Contract/
Amount due
Fair value
notional amount after one year
Foreign currency forward contracts (Principle hedge accounting)Selling (Principal hedged item: Accounts receivable-trade)
USD$ 60,266
—
$ 942
EUR
50,931
—
2,021
CAD
2,634
—
30
AUD
25,717
—
(725)
NZD
2,398
—
(10)
GBP
5,107
—
313
MXN
14,710—(158)
Buying (Principal hedged item: Accounts payable-trade)
THB
38,069
—
(371)
EUR
4,579
—
9
Foreign currency forward contracts (Exceptional hedge accounting)Selling (Principal hedged item: Accounts receivable-trade)
USD
8,529
—
*
EUR
179,001—*TypeSUZUKI MOTOR CORPORATION 51

Consolidated Financial Statements

CAD
3,138
—
*
AUD
30,327
—
*
NZD
2,735
—
*
GBP
1,738
—
*
MXN
5,302
—
*
CNY
21,047—*
Buying (Principal hedged item: Accounts payable-trade)
THB
19,730
—
*
JPY
3,549
—
*
Total
$479,519—$2,050* 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

2015
2016
Principal
Type
Contract/
Amount due
Contract/
Amount due
hedged 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¥—¥—
¥ 32,500¥ 12,500*
Interest rate swap (Principle hedge accounting)
Pay fixed
Long-term
receive floating debt
63,50063,500———
Cross currency interest rate swap (Principle hedge accounting)
Pay fixed
receive floating
Pay IDR
receive USD
8,919
4,026
12,608
5,055—
Long-termdebt
Pay fixed
receive floating
Pay THB
receive USD
14,962
14,962
12,89912,899
1,109
Cross currency interest rate swap (Integration hedge accounting)
Pay fixed
receive floating Long-term
Pay JPY
debt
receive USD
98,00098,000118,000
118,000*
Pay fixed
receive floating
Pay CNY
receive JPY
243
243
243
243
*
Long-term
receivable
Pay fixed
receive floating
Pay INR
receive USD
2,913
2,913
2,732
2,732
*
Total
¥188,538¥183,645¥178,983¥151,430¥1,109Thousands of US dollars
2016
Principal
Type
Contract/
Amount due
hedged item
notional amount after one year
Interest rate swap (special exceptional hedge accounting)
Pay fixed
Long-term$288,427$110,933
receive floating debt
Cross currency interest rate swap (Principle hedge accounting)
Pay fixed
receive floating Long-term
111,893
44,869Pay IDR
debt
receive USD

52 SUZUKI MOTOR CORPORATION

Fair value*—

Fair value

¥ —
(32)

(18)

(16)

*

*

*
¥(67)

Consolidated Financial Statements

Pay fixed
receive floating Long-term
114,481
114,481
Pay THB
debt
receive USD
Cross currency interest rate swap (Integration hedge accounting)
Pay fixed
receive floating Long-term
1,047,213
1,047,213
Pay JPY
debt
receive USD
Pay fixed
receive floating
2,156
2,156
Pay CNY
receive JPY
Long-term
receivable
Pay fixed
receive floating
24,24824,248
Pay INR
receive USD
Total$1,588,420$1,343,902

9,847

*

*

*
$9,847* Since these cross currency interest rate swap transactions are handled together with hedged items, their fair values are included in that of hedged
items.

NOTE 6: Short-term debts and long-term debts
Short-term debts were as follows. The annual interest rates of short-term debts as of 31 March 2016 were from 0.10 percent to19.8 percent.
Thousands of
US dollars

Millions of yen

2016

2015

2016

¥266,490¥281,950$2,365,018

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

41

43

368

¥266,531¥281,994$2,365,387

Long-term debts were as follows:
Thousands of
US dollars

Millions of yen

2016

2015

2016

¥262,797¥272,717$2,332,249

Long-term loans payable maturing through 2021
Unsecured..........................................................................
Lease obligations due more than one year...........................

16

49

143

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

11,90013,731

105,609¥274,714¥286,497$2,438,001

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.

SUZUKI MOTOR CORPORATION 53

Consolidated Financial Statements

The aggregate annual maturities of long-term debts excluding other interest-bearing debts as of 31 March 2016 were as follows:Year ending 31 MarchMillions of yen

Thousands of
US dollars

2018........................................................................................

¥109,249$ 969,555

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

61,563546,3592020........................................................................................

15,000133,126

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

77,000683,351¥262,813$2,332,392

Millions of yen

Thousands of
US dollars¥594$5,271

Assets pledged as collateral as of 31 March 2016:

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

97

861

¥691

$6,133

Millions of yen

Thousands of
US dollars¥372$3,309Secured liabilities as of 31 March 2016:

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

NOTE 7: Loan commitment
The Company has the commitment line contract with six banks for effective financing. The outstanding balance of this contract
was as follows:
Thousands of
US dollars

Millions of yen

Commitment line contract total..............................................
Actual loan balance................................................................
Variance

54 SUZUKI MOTOR CORPORATION

2016

2015

2016

¥250,000¥200,000$2,218,672

—

—

—

¥250,000¥200,000$2,218,672

Consolidated Financial Statements

NOTE 8: Retirement and severance benefits

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

2015

2016
Opening balance of retirement benefit obligation................

¥133,418¥111,096

Cumulative effects of changes in accounting policies.......

—

12,243—

Opening balance reflected changes in accounting.............
Service cost...........................................................................
Interest cost...........................................................................
Actuarial differences..............................................................
Retirement allowance paid...................................................
Past service cost...................................................................
Others....................................................................................
Closing balance of retirement benefit obligation¥133,418
8,322
1,855
14,073(4,753)347(1,103)¥152,161¥123,339
6,638
1,681
886
(4,751)
5,322
301¥133,418$1,184,051
73,862
16,467
124,901(42,188)
3,084(9,792)$1,350,387

2015

Thousands of
US dollars$1,184,051(b) Reconciliation of pension assets from the opening balance to the closing balance
Millions of yen

2016
Opening balance of pension assets.....................................

¥94,487¥90,040

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

1,537

1,000

13,643

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

(1,344)454(11,929)$838,551

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

4,856

5,905

43,097Retirement allowance paid...................................................

(3,452)(3,364)(30,639)

Others....................................................................................
Closing balance of pension assets

(219)

451

(1,950)¥95,865¥94,487$850,772(c) Reconciliation between closing balance of retirement benefit obligation and pension assets and net amount of liability/asset
for retirement benefits recognized in consolidated balance sheet
Millions of yen

Thousands of
US dollars

2015

2016
Defined benefit obligation of funded severance plan..........

¥108,729¥95,065$964,943

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

(95,865)(94,487)(850,772)

12,864577

114,170

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

43,43138,353

385,443

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

¥56,296¥38,930$499,614

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

¥56,346¥40,791$500,061

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

(50)(1,860)(447)

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

¥56,296¥38,930$499,614

SUZUKI MOTOR CORPORATION 55

Consolidated Financial Statements(d) Breakdown of retirement benefit expenses

Millions of yen
Thousands of
US dollars

2015

2016
Service cost............................................................................

¥8,322¥6,638Interest cost............................................................................

1,855

1,681

16,467

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

(1,537)(1,000)(13,643)

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

987

992

8,762

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

(342)

117

(3,036)

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

48

46

426

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

¥9,334¥8,477$82,839$73,862(e) Adjustment for retirement benefits
Breakdown of adjustment for retirement benefit recognized were as follows:
Millions of yen

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

Thousands of
US dollars

2015

2016
¥(293)¥(5,140)$(2,608)

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

(14,782)616(131,186)

Total¥(15,075)¥(4,524)$(133,794)(f) Accumulated adjustment for retirement benefits
Breakdown of accumulated adjustment for retirement benefit recognized were as follows:
Millions of yen

2016

Thousands of
US dollars

2015

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

¥(2,158)¥(1,864)$(19,152)

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

(11,437)

3,344(101,508)

Total¥(13,596)¥1,479$(120,661)(g) Pension assets
a. Major breakdown of pension assets
Portion of major components to total pension assets were as follows:
2016

2015

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

43.9%

49.0%

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

37.9%

37.9%

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

18.2%

13.1%

Total

100.0%

100.0%

b. Method to determine long-term expected return on pension assets
Expected return on pension assets were determined by considering the current and anticipated future portfolio of pension assets and current and anticipated future long-term performance of various asset classes that comprise pension
assets.
(h) Actuarial assumptions
2016

2015

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

0.15%

1.12%

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

1.80%

0.88%

3. Defined contribution plan
Year ended 31 March 2015
Contribution to defined contribution plan by the Company and consolidated subsidiaries was 231 million yen.
Year ended 31 March 2016
Contribution to defined contribution plan by the Company and consolidated subsidiaries was 233 million yen (2,069 thousand
US dollars).
56 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

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

Millions of yen

2016

2015

2016

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

¥57,330¥57,418$508,789

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

34,04437,254

302,133

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

19,38324,197

172,021

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

13,655

14,265

121,189

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

3,606

3,579

32,010

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

81,52375,362

723,494

Deferred tax assets

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

209,544

212,078

1,859,638

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

(36,743)(39,996)(326,091)

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

¥172,800¥172,082$1,533,547¥(39,938)¥(76,700)$(354,438)

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

(5,264)(5,811)(46,723)

Reserve for advanced depreciation of noncurrent assets....

(3,265)(3,450)(28,983)

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

(1,145)(1,076)(10,164)

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

(49,614)(87,038)(440,309)

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

¥123,186¥85,043$1,093,237* Net amounts of deferred tax assets are included in the following accounts in the consolidated balance sheets.
Thousands of
US dollars

Millions of yen

2016

2015

2016

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

¥116,378¥115,015$1,032,819

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

14,773

19,985

131,111

Current liabilities – Deferred tax liabilities..........................

(481)(6,190)(4,274)

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

(7,484)(43,766)(66,418)SUZUKI MOTOR CORPORATION 57

Consolidated Financial Statements(b) Breakdown of the differences between the statutory tax rate and the effective tax rate
2016

2015

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

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

2.82%

—

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

2.64%

—

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

(0.21)%—

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

37.59%—* For the year ended 31 March 2015, the note was omitted as the difference between the statutory tax rate and the effective tax rate after adoption oftax effect accounting was less than 5% of the statutory tax rate.

(c) Revision of the amount of deferred tax assets and deferred tax liabilities due to change in corporation tax rate
“The Act on Partial Revision of the Income Tax Act, etc.” (Act No.15 of 2016) and “The Act on Partial Revision of the
Local Tax Act, etc.” (Act No.13 of 2016) were enacted in the Diet on 29 March 2016. As a result, the effective corporation
tax rate to calculate deferred tax assets and deferred tax liabilities in this consolidated fiscal year (applied only to besettled on or after 1 April 2016) which were expected to be settled from 1 April 2016 to 31 March 2018 was changed to30.21%, and which were expected to be settled on or after 1 April 2018 was to 29.99%, while the effective corporation
tax rate to calculate deferred tax assets and deferred tax liabilities in previous consolidated fiscal year which were
expected to be settled from 1 April 2015 to 31 March 2016 was 32.34%, and which were expected to be settled on orafter 1 April 2016 was 31.56%.
As a result of this change in corporation tax rate, the amount of deferred tax assets (net amount of deferred tax
liabilities) decreased by ¥5,650 million, income taxes-deferred increased by ¥6,882 million, valuation difference on
available-for-sale securities increased by ¥1,435 million, deferred gains or losses on hedges increased by ¥1 million,
and accumulated adjustment for retirement benefit decreased by ¥204 million.

NOTE 10: Research and development costs
Research and development costs included in selling, general and administrative expenses were as follows:
Thousands of
US dollars

Millions of yen

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

2016

2015

2016

¥131,031¥125,896$1,162,859

NOTE 11: Cash and cash equivalents
Cash and cash equivalents were as follows:
Thousands of
US dollars

Millions of yen

2016

2015

2016

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

¥497,187¥457,513$4,412,385

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

279,571685,647

2,481,109

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

(47,098)(18,012)(417,986)

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

(279,571)(192,888)(2,481,109)¥450,088¥932,261$3,994,398

58 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

NOTE 12: Net assets
The Companies Act of Japan (“the Companies Act”) requires that at least 50% of the contribution of new shares shallbe included in capital stock. The portion to be recorded as capital stock is determined by resolution of the meeting of
the Board of 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
capital surplus or legal retained earnings until total amount of them reaches a certain limit, defined as 25% of thecapital 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
consolidated balance 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 13: Other comprehensive income
Thousands of
US dollars

Millions of yen

2016

2015

2016

¥(78,299)¥77,327$ (694,886)

Valuation difference on available-for-sale securities
Loss (gain) arising during the period.................................
Reclassification adjustments..............................................

(35,422)—(314,367)

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

(113,722)

77,327(1,009,254)

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

36,711(19,592)

325,801

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

¥(77,011)¥57,734$ (683,453)

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

¥2,939¥965$ 26,088

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

(3,088)75(27,407)

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

(148)

1,041

(1,318)Deferred gains or losses on hedges

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

119

(453)

1,057

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

¥(29)

¥587

$ (261)

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

¥(101,996)¥46,774$ (905,183)

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

1,405

—

12,474

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

¥(100,590)¥46,774$ (892,708)¥(15,274)¥(5,176)$(135,552)

Adjustment for retirement benefit
Loss (gain) arising during the period.................................
Reclassification adjustments..............................................

198

651

1,757

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

(15,075)(4,524)(133,794)

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

4,513

1,518

40,056

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

¥(10,562)¥(3,005)$(93,737)

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

¥(3,411)¥3,489$ (30,277)

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

¥(191,605)¥105,579$ (1,700,437)

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

SUZUKI MOTOR CORPORATION 59

Consolidated Financial Statements

NOTE 14: Significant Changes in the Amount of Shareholders’ Equity(a) Acquisition of treasury stock and sales of Volkswagen AG share
The Company carried out the acquisition of 119,787,000 treasury stocks through the Tokyo Stock Exchange Trading
Network System for Off-Auction Treasury Share Repurchase Trading (ToSTNeT-3) on 17 September 2015 for the purposeof repurchase of 111,610,000 ordinary Suzuki shares owned by Volkswagen AG, pursuant to the arbitration award fromInternational Court of Arbitration of the International Chamber of Commerce on 29 August 2015.
And the Company also disposed of all of 4,397,000 ordinary Volkswagen AG shares owned by the Company, in line with
the intention of Volkswagen AG on 25 September 2015.
(Details of Acquisition of Treasury Stock)
Type of shares acquired

Ordinary shares of Suzuki

Total number of shares acquired

119,787,000 shares

Total amount paid of the acquisition

460,281 million yen (4,084,850 thousand US dollars)

Acquisition date17 September 2015 (trade basis)(Details of Sales of Volkswagen AG Share)
Type of shares soldOrdinary shares of Volkswagen AG

Total number of shares sold4,397,000 shares (All the shares owned by the Company)

Buyer

Porsche Automobil Holding SE

Gain on sales of investment securities
Execution of agreement

25 September 2015

36,691 million yen (325,621 thousand US dollars)(b) Retirement of treasury stock
The Company resolved to cancel treasury stock, pursuant to provisions of Article 178 of the Companies Act by a Boardof Directors’ meeting held on 7 March 2016. The Company carried out cancelling 70,047,304 treasury stocks on 31
March 2016.

NOTE 15: Cash dividends
Resolutions
Ordinary General
Meeting of Shareholders
held on 26 June 2015
Total amount of cash dividends
Cash dividends per share

Meeting of theBoard of Directors
held on 4 November 2015

¥9,537 million$84,643 thousand¥6,618 million$58,739 thousand¥17.00$0.15¥15.00$0.13

Record date

31 March 2015

30 September 2015

Effective date

29 June 2015

30 November 2015

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 2016
Total amount of cash dividends
Cash dividends per share¥7,501 million$66,571 thousand¥17.00$0.15

Record date

31 March 2016

Effective date

30 June 2016

60 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

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:
1. Resolution date
28 June 2012
2. Category and number of people to whom stock options are granted
10 Directors of the Company (excluding Outside Directors)
6 Managing Officers who do not concurrently serve as Directors
3. Class of shares that are the subject of subscription rights to shares
Common stock of the Company
4. Number of shares
50,000 shares
5. Amount to be paid for subscription rights to shares
1 yen per 1 share
6. Period during which subscription rights to shares can be exercised
From 21 July 2012 to 20 July 2042
7. Terms of exercise of subscription rights to shares(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 dateof 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 be able to exercise the rights.
8. Matters relating to assignment of subscription rights to shares
The acquisition of subscription rights to shares by assignment shall require the approval of the Board of Directors of theCompany.
9. Matters relating to subrogation payment
None

1. Resolution date
27 June 2013
2. Category and number of people to whom stock options are granted
7 Directors of the Company (excluding Outside Directors)
10 Senior Managing Officers and Managing Officers who do not concurrently serve as Directors
3. Class of shares that are the subject of subscription rights to shares
Same to the plan adopted at 28 June 2012
4. Number of shares
29,400 shares
5. Amount to be paid for subscription rights to shares
Same to the plan adopted at 28 June 2012
6. Period during which subscription rights to shares can be exercised
From 20 July 2013 to 19 July 2043
7. Terms of exercise of subscription rights to shares
Same to the plan adopted at 28 June 2012
8. Matters relating to assignment of subscription rights to shares
Same to the plan adopted at 28 June 2012
9. Matters relating to subrogation payment
Same to the plan adopted at 28 June 2012SUZUKI MOTOR CORPORATION 61

Consolidated Financial Statements

1. Resolution date
27 June 2014
2. Category and number of people to whom stock options are granted
6 Directors of the Company (excluding Outside Directors)
6 Managing Officers who do not concurrently serve as Directors
3. Class of shares that are the subject of subscription rights to shares
Same to the plan adopted at 28 June 2012
4. Number of shares
20,500 shares
5. Amount to be paid for subscription rights to shares
Same to the plan adopted at 28 June 2012
6. Period during which subscription rights to shares can be exercised
From 23 July 2014 to 22 July 2044
7. Terms of exercise of subscription rights to shares
Same to the plan adopted at 28 June 2012
8. Matters relating to assignment of subscription rights to shares
Same to the plan adopted at 28 June 2012
9. Matters relating to subrogation payment
Same to the plan adopted at 28 June 2012

NOTE 17: Contingent liabilities
As of 31 March 2016 and 2015, the Company and some of consolidated subsidiaries had the contingent liabilities as follows:
Thousands of
US dollars

Millions of yen

2016
Guarantee of indebtedness of affiliates and others..........

¥1,4272015

2016¥10,425$12,670

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

Main products and services

Motorcycle

Motorcycles, All-terrain vehicles

Automobile

Minivehicles, Sub-compact vehicles, Standard-sized vehicles

Marine and Power products, etc.

Outboard motors, Engines for snowmobiles, etc., 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).

62 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

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

2016
Motorcycle

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....

Automobile

Marine & Powerproducts, etc.

Adjustment

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

190,376

1,984,591

46,094

480,945

2,702,008

7,992
184
30

158,116
1,723
292

2,207
79
—

—
—
—

168,315
1,988
322

3,990

42,193

67—

46,2507,531

161,679

2,324—

171,535

Millions of yen

2015
Motorcycle

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....

Automobile

Marine & Powerproducts, etc.

Adjustment

Consolidated¥——¥3,015,461
179,424¥250,485(675)¥2,701,942
171,827¥63,033
8,272

203,256

1,893,036

45,1591,111,348

3,252,800

8,504
639
—

124,686
1,757
969

1,186
122
—

—
—
—

134,377
2,519
969

15,08945,346

82—

60,5198,356

184,785

1,314—

194,457

Thousands of US dollars

2016
Motorcycle

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

Automobile

Marine & Powerproducts, etc.

$2,075,700 $25,545,935(90,510)
1,709,435$605,725
114,375

1,689,535

17,612,632

409,075

70,9281,403,233

1,639
266

15,2992,594

35,41066,841

Adjustment$

Consolidated— $28,227,361—
1,733,300
4,268,241

23,979,484

19,586—

1,493,749

707
—

—
—

17,646
2,861

374,451600—

410,462

1,434,854

20,629—1,522,325

SUZUKI MOTOR CORPORATION 63

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

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

Millions of yen

2015
Japan

Europe

Asia

Other
areas

Eliminations

Consolidated¥—¥3,015,461

Net Sales:
Net sales to external customers....

¥1,317,659¥306,156¥1,233,494¥158,151

Internal net sales or transfer
among geographical areas...........

447,311

129,982

72,7361,029(651,059)—

1,764,970

436,139

1,306,230

159,181(651,059)

3,015,461

90,718

5,116

81,607

2,620

(637)

179,424

Total
Operating income..............................

Thousands of US dollars

2016
Japan

Europe

Asia

Other
areas

Eliminations

Consolidated

Net sales:
Net sales to external customers....

$11,547,808

Internal net sales or transfer
among geographical areas...........

4,516,881

2,015,941

832,719

4,810

16,064,689

4,885,208

13,277,565

1,370,250

752,686

59,648921,405

21,579Total
Operating income..............................

$2,869,267 $12,444,845$1,365,439 $*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.

64 SUZUKI MOTOR CORPORATION— $28,227,361(7,370,352)—(7,370,352) 28,227,361(22,020)

1,733,300

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

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

Japan

India

Others¥1,047,883¥980,288¥1,152,486

Consolidated¥3,180,659

Millions of yen

2015
Net sales........................................

Japan

India

Others¥1,094,611¥814,584¥1,106,265

Consolidated¥3,015,461

Thousands of US dollars

2016
Japan

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

$9,299,642

India$8,699,758

OthersConsolidated$10,227,961$28,227,361

NOTE 19: Significant Subsequent Event

The Company resolved issuance 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 Bonddue 2023 by a Board of Directors’ meeting held on 7 March 2016. All payments were completed on 1 April 2016. The outline ofthese bonds is as follows:(1) Name of the bond(2) Total issue amount(3) Issue price(4) Offer price(5) Coupon(6) Closing and issue date(7) Redemption price(8) Redemption at maturity, Early redemption
and Cancellation by acquisition(9) 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 acquisitionrights(10) Security or guarantee(11) 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 (887 million US dollars) plus the aggregate
principal amount of the bonds in respect of replacement
certificates of the bonds with stock acquisition rights
100.5% of principal amount103.0% of principal amountZero
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.

Common stock of the Company

SUZUKI 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 amountSame as on the left
Same as on the left
Same as on the left
31 March 2023 by 100% of principal
amount /Same as on the left

Same as on the left

10,000 units plus the units of the aggregate principal amountof the bonds in respect of replacement certificates of theSame as on the leftbonds with stock acquisition rights divided by 10 million yen
4,120.0 yen (36.6 US dollars)Same as on the left
From 15 April 2016 to 17 March 2021
From 15 April 2016 to 17 March 2023
[Automatic-acquisition-upon-exercise clause (subject to the[Same as on the left]
maximum number of shares to be delivered)]
Exercising by 31 December 2022
Exercising by 31 December 2020
[Same as on the left][One-time acquisition clause (subject to the maximum number
Giving notice from 31 March 2022of shares to be delivered)]
to16 December 2022
Giving notice from 31 March 2020 to 16 December 2020
[Same as on the left][Contingent conversion mechanism (130%)]
Until 31 December 2022
Until 31 December 2020
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.
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.
SUZUKI MOTOR CORPORATION 65

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 2016, 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 requirethat 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 2016, 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.
Emphasis of Matter
Without qualifying our opinion, we draw attention to Note 19 “Significant Subsequent Event” to the consolidated financial
statements, the Company resolved issuance of Euro Yen Zero Coupon (subject to the maximum number of shares to bedelivered) Convertible Bond due 2021 and Euro Yen Zero Coupon (subject to the maximum number of shares to be delivered) Convertible Bond due 2023 by a Board of Directors’ meeting held on 7 March 2016. All payments were completed
on 1 April 2016.
Convenience Translation
The amounts expressed in US dollars, which are provided solely for the convenience of the reader, have been translatedon the basis set forth in Note 1 to the accompanying consolidated financial statements.

Seimei Audit Corporation
Tokyo, Japan
29 June 2016

66 SUZUKI MOTOR CORPORATION

Company Outline
1. Company NameSUZUKI MOTOR CORPORATION

2. Date of Incorporation

March 1920
June 1954
October 1990

3. Head Office

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

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

4. Main Products

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

5. Fiscal Year-End

31 March

6. Public Accounting Firm

Seimei Audit Corporation

7. Capital and Shareholders
Capital(as of 31 March, 2016)¥138,014 million

Total number of authorized shares

1,500 million

Total number of shares issued

491,000,000

Number of shareholders

33,252

Stock Listing

Tokyo Stock Exchange

Securities Code7269

Ordinary General Meeting of Shareholders

June

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

Shareholders’ Register Manager

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

Number of Shares Held

Shareholding Ratio

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

26,216

5.9

JP Morgan Chase Bank 380055

21,804

4.9

Japan Trustee Services Bank, Ltd. (Trust Account)

20,2094.6

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.

13,0002.9

Sompo Japan Nipponkoa Insurance Inc.

7,761

1.8

Nippon Steel & Sumitomo Metal Corporation

7,759

1.8

Fuji Heavy Industries Ltd.

5,780

1.3

(Thousands of Shares)(%)(Note) *1. Number of shares less than 1,000 is truncated.
*2. Percentage of Shareholding is calculated excluding treasury stock (49,748 thousand shares).

SUZUKI MOTOR CORPORATION 67

Company Outline

Suzuki Group

Subsidiaries: 136 companies (69 in domestic, 67 in overseas)   Affiliates: 33 companies(1) Major Domestic Subsidiaries[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.

[Non-Manufacturing Subsidiaries]
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
PakistanIndonesia
ThailandThailandPhilippines
Cambodia
China
VietnamTaiwanMyanmar

Maruti Suzuki India Ltd.
Suzuki Motorcycle India 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
44 directly managed overseas marketing companies

68 SUZUKI MOTOR CORPORATIONANNUAL REPORT 2016
Printed in Japan