FINANCIAL SECTIONCONTENTS
Five-Year Summary........................................................................................ 2
Consolidated Financial Statement................................................................. 3
Consolidated Balance Sheets................................................................................ 3
Consolidated Statement of Income andConsolidated Statement of Comprehensive Income......................................... 5
Consolidated Statement of Changes in Net Assets................................................ 7
Consolidated Statement of Cash Flows................................................................. 9
Notes to Consolidated Financial Statements....................................................... 10
Independent Auditor’s Report.............................................................................. 30—1—
SUZUKI MOTOR CORPORATIONFive-Year Summary
SUZUKI MOTOR CORPORATIONCONSOLIDATED
Millions of yen(except per share amounts)

2019

2018

2017

2016

2015

¥3,871,496¥3,757,219¥3,169,542¥3,180,659¥3,015,461

178,759

215,730

159,956

116,660

96,862

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

395.26488.86362.54234.98172.67

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

395.20473.74362.48234.92172.63

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

74.00

74.00

44.00

32.00

27.00

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

1,715,914

1,595,227

1,387,041

1,187,703

1,701,390

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

3,401,970

3,340,828

3,115,985

2,702,008

3,252,800

Depreciation and amortization ....

148,926

150,877

163,397

168,315

134,377

Years ended 31 March

Net sales ......................................
Net income attributable to owners of
the parent .....................................
Net income per share:—2—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement
Consolidated Balance Sheets
As of 31 March 2019 and 2018

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2019

2018

¥473,097¥600,846

445,700

388,973

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

(4,822)(4,769)Inventories *Note 7..............................................................

351,896352,916

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

356,445

481,022

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

1,622,317

1,818,988

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

299,977

280,866

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

490,441454,347

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

1,283,453

1,217,050

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

626,529585,610

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

89,585

106,3932,789,988

2,644,269

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

(1,885,711)(1,840,003)

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

904,276804,265

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

604,164

517,693

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

Investments in affiliates *39,14535,509Assets for retirement benefits *Note 9................................

—

42

198,422

145,563

Investments and other assets:

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

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

33,644

18,764

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

875,376

717,573

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

¥3,401,970¥3,340,828

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

—3—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

As of 31 March 2019 and 2018

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2019

2018

¥93,807¥97,598

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term loans payable *Note 5 and 7 ................................
Current portion of long-term loans payable *Note 5 and 7....

63,845

93,157

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

327,373443,916

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

71,532

68,322

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

34,661

40,598

Accrued expenses *Note 5.................................................

297,200

215,335

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

248,199

105,106

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

203,040

177,305

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

1,339,662

1,241,341

Bonds with subscription rights to shares *Note 5 and 6........

11,535

194,211

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

206,250

192,943

Liabilities for retirement benefits *Note 9............................

82,81365,224

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

436

1,914

Noncurrent liabilities:
Long-term loans payable *Deferred tax liabilities *Note 2 and 10.....................................

2,895

2,105

Others *Note 7.....................................................................

42,46247,860Total noncurrent liabilities...................................................

346,393504,259

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

1,686,055

1,745,601

Net assets:
Shareholders’ equity:
Capital stock:
Common stock
Authorized: 1,500,000,000 shares Issued:
as of 31 March 2019 :491,049,100 shares
as of 31 March 2018 :491,018,100 shares....................

138,161

138,064

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

143,965

143,868
1,247,242

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

1,314,587

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

(113,963)(189,126)

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

1,482,750

1,340,047

95,873

108,528

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

(219)

22

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

(164,544)(140,136)

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

(21,369)(10,925)

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

(90,260)(42,511)

Subscription rights to shares *Note 16...............................

115

126

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

323,309297,564

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

1,715,914

1,595,227

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

¥3,401,970¥3,340,828—4—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)Years ended 31 March 2019 and 2018

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2019

2018

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

¥3,871,496¥3,757,219

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

2,738,958

2,651,473

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

1,132,538

1,105,745

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

808,172

731,563

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

324,365

374,182

Interest and dividends income ..........................................

54,89435,633

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

(4,241)(8,152)Other income (expenses):

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

5,029(13,870)

Contribution *Note 2................................................................

(3,797)(846)

Loss of liquidation of subsidiaries and affiliates................

(4,446)—Note 3.........................................................

Impairment loss *(1,514)(2,585)

Measure expenses for final inspection *Note 4.....................

(81,329)—

Others, net *Note 2.................................................................

9,429

(326)

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

298,390384,033

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

103,503

121,527

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

(42,000)(12,933)

61,502

108,593

Income taxes *Note 10:

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

236,887

275,439

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

58,12859,709Net income attributable to owners of the parent..............

¥178,759¥215,730

Yen

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

¥395.26¥488.86

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

395.20473.74

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

74.00

74.00

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

—5—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(Consolidated Statement of Comprehensive Income)Years ended 31 March 2019 and 2018

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2019

2018

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

¥236,887¥275,439

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

(16,012)16,036

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

(214)(1,232)Foreign currency translation adjustment...........................

(25,318)(35,936)

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

(10,848)(514)

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

(6,565)234

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

(58,958)(21,411)Comprehensive income......................................................

177,928

254,027

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

131,010

202,870

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

46,91851,157

Other comprehensive income *Note 14

Comprehensive income attributable to:

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

—6—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Consolidated Statement of Changes in Net Assets
Years ended 31 March 2019 and 2018

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES

Thousandsof sharesof common
stock

Total
Shareholders’equityCapitalstock

CapitalsurplusRetainedearnings

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

Issuance of new shares.....

18

49

49

—

—

98

Dividends from surplus......

—

—

—

(25,153)—(25,153)

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

—

—

—

215,730—

215,730

Purchase of treasury stock....

—

—

—

—

(6)

(6)

Disposal of treasury stock......

——(1,912)

—

1,930

18

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

—

—

1,912

(1,912)——

Capital increase of
consolidated subsidiaries......

—

—

(216)

—

—

(216)

Change of scope of equity
method................................

—

—

—

28

—

28

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

—

—

—

—

—

—

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

18

49

(166)

188,692

1,924

190,498

491,018¥138,064¥143,868¥1,247,242¥(189,126)¥1,340,047

Issuance of new shares.....

31

97

97

—

—

194

Dividends from surplus......

—

—

—

(36,481)—(36,481)Net income attributable toowners of the parent..........

—

—

—

178,759—

178,759

Purchase of treasury stock....

—

—

—

—

(7)

(7)

Disposal of treasury stock......

——(74,932)—

75,171

238

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

——

74,932(74,932)——

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

—

—

—

—

—

—

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

31

97

97

67,34575,163

142,702491,049¥138,161¥143,965¥1,314,587¥(113,963)¥1,482,750

Balance as of
31 March 2017

Balance as of
31 March 2018

Balance as of
31 March 2019

—7—
SUZUKI MOTOR CORPORATION

Treasury stockConsolidated Financial Statement

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES
Balance as of
31 March 2017

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Total
Accumulated accumulated
adjustment
otherfor retirement comprehensive
incomebenefits

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥98,827¥1,269¥(119,236)¥(10,543)¥(29,683)¥126

Issuance of new shares.....

—

—

—

—

—

—

—

98

Dividends from surplus......

—

—

—

—

—

—

—

(25,153)

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

—

—

—

—

—

—

—

215,730

Purchase of treasury stock....

—

—

—

—

—

—

—

(6)

Disposal of treasury stock......

—

—

—

—

—

—

—

18

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

—

—

—

—

—

—

—

—

Capital increase of
consolidated subsidiaries......

—

—

—

—

—

—

—

(216)

Change of scope of equity
method................................

—

—

—

—

—

—

—

28

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

9,700(1,246)(20,900)(381)(12,828)—

30,514

17,686

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

9,700(1,246)(20,900)(381)(12,828)—

30,514

208,185¥108,528¥22¥(140,136)¥(10,925)¥(42,511)¥126

Issuance of new shares.....

—

—

—

—

—

—

—

194

Dividends from surplus......

—

—

—

—

—

—

—

(36,481)Net income attributable toowners of the parent..........

—

—

—

—

—

—

—

178,759

Purchase of treasury stock....

—

—

—

—

—

—

—

(7)

Disposal of treasury stock......

—

—

—

—

—

—

—

238

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

—

—

—

—

—

—

—

—

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

(12,654)(242)(24,407)(10,444)(47,749)(11)

25,744(22,015)

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

(12,654)(242)(24,407)(10,444)(47,749)(11)

25,744

120,687¥95,873¥(219) ¥(164,544)¥(21,369)¥(90,260)¥115

Balance as of
31 March 2018

Balance as of
31 March 2019

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

—8—
SUZUKI MOTOR CORPORATION¥267,049 ¥1,387,041¥297,564 ¥1,595,227¥323,309 ¥1,715,914

Consolidated Financial Statement

Consolidated Statement of Cash Flows
Years ended 31 March 2019 and 2018

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2019

2018

¥298,390
148,926
1,514(112)
143,410(54,894)
4,241
996(5,029)(1,553)(158)(60,053)(7,431)(107,695)
84,193(3,869)440,875
55,057(3,636)(108,858)
383,437¥384,033
150,877
2,585(81)
27,742(35,633)
8,152
1,064
13,870(2,550)(1,281)(41,940)(23,449)
5,710
29,72011,325
530,146
36,062(8,649)(112,387)
445,171(88,201)
138,195(819,455)(141,102)
96,086(729,488)

730,247(251,507)
39,874(250,848)

775,840(205,854)(137,066)(341,585)(125)
78,779(95,001)

1,443
57,000(120,874)(182,400)(7)(36,340)(20,819)(194)(256,110)(4,228)(127,749)
600,846¥473,097(6,070)(6)(25,146)(20,789)
521(113,922)(2,848)(13,185)
614,031¥600,846

Cash flows from operating activities
Income before income taxes etc. .....................................
Depreciation and amortization ..........................................
Impairment loss .................................................................
Increase (decrease) in allowance for doubtful accounts...........
Increase (decrease) in provision for product warranties *Note 2...
Interest and dividends 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 *Note2..................................................................
Sub-total..............................................................................
Interest and dividends 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 and redemption 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 convertible bond with stock acquisitionrights *Note 2...........................................................................
Purchase of treasury stock ................................................
Cash dividends paid .........................................................
Cash dividends paid to non-controlling interests .............
Others, net *Note 2..................................................................
Net cash provided by (used in) financing activities..........
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period *Note 13

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

—9—
SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

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

NOTE 2: Summary of significant accounting policies(a) Principles of consolidation
The consolidated financial statements for the years ended 31 March 2019 and 2018 include the accounts of the Group, andthe numbers of consolidated subsidiaries were 130 and 131 respectively. In addition, the numbers of investments in affiliatedcompanies for the years ended 31 March 2019 and 2018 were 28 and 31 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 affiliated companies accounted for under the equity method is amortized on a straight-line basis over a period of five years after appropriate adjustments.
The account settlement date of 18 consolidated subsidiaries is 31 December, however Magyar Suzuki Corporation Ltd. andothers are consolidated based on the financial statements of provisional account settlement as of 31 March.
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 the actual ratio of bad debt is recorded as
general allowance. With respect to specific receivable with higher default possibility, recoverable amount is estimated respectively and uncollectible amount is recorded.
(c) Allowance for investment loss
The differences between the book value and the fair value of securities and investment not quoted at an exchange are determined and recorded as reserve in order to allow for losses from these investments.
(d) Provision for product warranties
The provision is recorded into this account based on the warranty agreement, laws and past experience in order to allow for
expenses related to the maintenance service of products sold.
(e) Provision for Directors' bonuses
In order to defray bonuses for Directors and Audit & Supervisory Board Members, estimated amount of such bonuses is recorded.
(f) Provision for Directors' retirement benefits
The amount to be paid at the end of the fiscal year had been recorded pursuant to the Company’s regulations on the retirement allowance of Directors and Audit & Supervisory Board Members. However, the Company’s retirement benefit system
for them was abolished at the closure of the Ordinary General Meeting of Shareholders held on 29 June 2006. And it wasapproved at Ordinary General Meeting of Shareholders that reappointed Directors and Audit & Supervisory Board Members
would be paid their retirement benefit at the time of their retirement, based on their years of service. Estimated amount of such
retirement benefits is recorded at the end of the current fiscal year. Furthermore, in some of consolidated subsidiaries, theamount to be paid at the end of the year is recorded pursuant to their regulation on the retirement allowance of Directors andAudit & Supervisory Board Members.
(g) Provision for disaster
Reasonably estimated amount is recorded for anticipated loss mainly caused by relocation of plants and facilities located in
Ryuyo Region in Iwata City, Shizuoka Prefecture where massive tsunami damages caused by Tokai and Tonankai Earthquake
are anticipated.
(h) Provision for product liabilities
The provision is recorded for product compensation related to North American market which is not covered by “Product Liability Insurance” based on the actual payments.
(i) Provision for recycling expenses
The provision is recorded for an estimated expense related to the recycle of products of the Company based on the number of vehicles owned in the market, etc.

— 10 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(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
The derivatives designated as “hedging instruments” by the Company and its subsidiaries are principally forward exchange
contracts, interest rate swap and cross currency interest rate swap. The related hedged items are foreign currency denominated transaction and borrowings.
Gains or losses arising from changes in fair value of the hedging instruments are deferred until the gains and losses on thehedged items or transactions are recognized.
If hedging instruments meet certain criteria, special hedge accounting is applied and these contracts are handled together
with hedged items.
The 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. Therefore, 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 orlosses on the hedging instruments and the related hedged items from the commencement of the hedges.
(l) Foreign currency translation
All monetary assets and liabilities denominated in foreign currencies, whether long-term or short-term, are converted into
Japanese yen at the exchange rates 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 converted into Japanese yen at the exchange rates
prevailing at the balance sheet date.
The components of net assets are converted into Japanese yen at their historical rates. Profit and loss accounts for the
fiscal year are converted into Japanese yen by using the average exchange rate during the fiscal year. Differences inyen amounts arising from the use of different rates are presented as “Foreign currency translation adjustment” and “Noncontrolling interests” in the net assets.
(m) Inventories
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.

— 11 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(o) Income taxes
The provision for income taxes is computed based on the income before income taxes included in the consolidated statements of income. The asset and liability approach is adopted to recognize deferred tax assets and liabilities for the expected
future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.
In making a valuation for the 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 recorded.
Consolidated tax payment has been applied to the Company and its domestic wholly owned subsidiaries from the fiscal year
ended 31 March 2012.
(p) Retirement benefits
With respect to calculation of retirement benefit obligations, benefit formula basis method is used to attribute expected benefit
to period up to the end of this fiscal year. With 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 therefore
the revaluation ratio, which is one of the base ratios, can reduce adverse effects caused by the decrease in discount rate.
If the investment yield of pension assets is less than the assumed return of investment ratio, it will have an adverse effect on
the calculation of retirement benefit cost. However, by focusing on low-risk investments, this influence should be minimal in thecase of the pension fund systems of the 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) New accounting standards to be applied“Accounting Standard for Revenue Recognition” (ASBJ Statement No. 29, issued on 30 March 2018)“Guidance on Accounting Standard for Revenue Recognition” (ASBJ Guidance No. 30, issued on 30 March 2018)
1) Outline
The aforementioned standard and guidance are comprehensive revenue recognition standards.
Revenue is recognized by applying the following steps:
Step 1: Identify the contract(s) with a customer
Step 2: Identify the performance obligations in the contract
Step 3: Determine the transaction price
Step 4: Allocate the transaction price to the performance obligations in the contract
Step 5: Recognize revenue when (or as) the entity satisfies a performance obligation
2) Scheduled date of application
The aforementioned standard and guidance will be applied at the start of the year ended 31 March 2022.
3) Effect of application of the accounting standards
The effect of the application of the aforementioned standards and guidance on the Group’s consolidated financial statements is under evaluation.
(t) Changes in Presentationa. The adoption of the “Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.”
From the current fiscal year, the company adopted the “Partial Amendments to Accounting Standard for Tax Effect Accounting, etc.” (ASBJ Statement No.28, 16 February 2018), thereby presenting “Deferred tax assets” under “Investments andother assets”, while presenting “Deferred tax liabilities” under “Noncurrent liabilities”.
As a result, “Deferred tax assets” of 122,092 million yen under “Current assets” and “Deferred tax liabilities” of 929 million
yen under “Current liabilities” in the consolidated balance sheet of the previous fiscal year have been reclassified as “Deferred
tax assets” of 145,563 million yen under “Investments and other assets” and “Deferred tax liabilities” of 2,105 million yen
under “Noncurrent liabilities”.

— 12 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statementb. Consolidated Statement of Income“Contribution”, which was included in “Others, net” under “Other income (expenses)” in the previous fiscal year, is presented separately in the current fiscal year due to the quantitative materiality. To reflect this change in presentation, the consolidated financial statement of the previous fiscal year has been reclassified.
As a result, “Others, net” of (1,173) million yen under “Other income (expenses)” in the consolidated statement of income ofthe previous fiscal year has been reclassified as “Contribution” of (846) million yen and “Others, net” of (326) million yen.
c. Consolidated Statement of Cash Flows“Increase (decrease) in provision for product warranties”, which was included in “Others, net” under “Cash flows from operating activities” in the previous fiscal year, is presented separately in the current fiscal year due to the quantitative materiality. To reflect this change in presentation, the consolidated financial statement of the previous fiscal year has been reclassified.
As a result, “Others, net” of 39,067 million yen under “Cash flows from operating activities” in the consolidated statement ofcash flows of the previous fiscal year has been reclassified as “Increase (decrease) in provision for product warranties” of
27,742 million yen and “Others, net” of 11,325 million yen.
“Proceeds from share issuance to non-controlling shareholders” under “Cash flows from financing activities”, which waspresented separately in the previous fiscal year, is included in “Others, net” in the current fiscal year due to the quantitative
materiality. To reflect this change in presentation, the consolidated financial statement of the previous fiscal year has been
reclassified.
As a result, “Proceeds from share issuance to non-controlling shareholders” of 1,005 million yen and “Others, net” of (484)
million yen under “Cash flows from financing activities” in the consolidated statement of cash flows of the previous fiscal
year has been reclassified as “Others, net” of 521 million yen.
The company changes the name of “Redemption of bonds” under “Cash flows from financing activities” to “Purchase of
convertible bond with stock acquisition rights” in the current fiscal year due to the more correct disclosure. To reflect thischange in presentation, the consolidated financial statement of the previous fiscal year has been reclassified.

NOTE 3: Impairment loss
The Group recorded impairment loss in year ended 31 March 2019.
This information is not provided due to its low materiality.
The Group recorded impairment loss in year ended 31 March 2018.
This information is not provided due to its low materiality.

NOTE 4: Measure expenses for final inspection
The Group recorded the measure expenses for final inspection of (81,329) million yen regarding the recall campaign etc. on the
improper final inspection in the current 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 toreduce the risks, the Group identifies credit standing of major counterparties and manages due date and receivable balanceof each counterparty in line with our rules and regulations for credit control. The Group hedges the risks of the fluctuation of
exchange rate from operating receivables denominated in foreign currency by forward exchange contract in principle.
Investment securities are mainly stocks of companies with which the Group has business relationship, and with respect tolisted stocks, the Group quarterly identifies those fair values and reports them to the Board of Directors.
Basically, accounts payable-trade is due within one year.
Applications of borrowings are fund for operating capital (mainly short-term) and capital expenditures (long-term), and theGroup uses interest rate swap or cross currency interest rate swap for the risks of the fluctuation of interest rate and exchange rate of some long-term borrowings.
Derivative transactions are foreign currency forward contracts to hedge the risks of the fluctuation of exchange rate related
to receivables and payables denominated in foreign currencies, interest rate swap to hedge the risks of the fluctuation of interest rate related to borrowings, and cross currency interest rate swap to hedge the risks of the fluctuation of exchange rateand interest rate related to borrowings and lending. The Group executes and manages derivatives within the actual demand— 13 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

in line with our rules and regulations which set out the authority to trade. In addition, in using derivatives, the Group deals withfinancial institutions which have high credit grade in order to reduce credit risks.
In addition, each company of the Group manages liquidity risk related to accounts payable and borrowings by making a financial plan.
c. Supplement to fair values of financial instruments
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 variablefactors, 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.

(b) Matters for fair values of the financial instruments
Carrying amounts in the consolidated balance sheet, fair values and difference as of 31 March 2019 and 2018 were as follows. Financial instruments whose fair value cannot be reliably measured are not included in the below table.
Millions of yen
2018

2019

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

Carrying
amount¥509,717
445,700

Difference¥690,418
391,536

¥—
2,563

—
753,949941
725¥3,824 ¥1,834,065—
443,916—
97,598(66)
93,157—215,335

753,949
3,300¥1,839,205
443,916
97,59893,235215,335—
2,575¥5,139——(78)—

194,211275,825(81,613)(68)
192,943¥(2,756) ¥1,237,163

192,920¥1,318,831

23¥(81,668)

153
51

153
51

—
—

Difference¥509,717
448,583¥—
2,883

772,519802¥1,728,740
327,373
93,807
63,845297,200

772,519
1,744¥1,732,565
327,373
93,807
63,911
297,200

11,535

14,157206,250¥1,000,013

206,318¥1,002,769

(89)
(688)

(89)
(688)

Carrying
amount¥690,418
388,973

Fair value

Fair value(2,621)——* Assets or liabilities derived from derivatives are shown on a net basis and net liabilities are shown as ( ).

*1. Matters for methods used to measure fair values of financial instruments
Assets:(1) Cash and deposits
Since fair values of deposits are approximately equal to the book values, book values are used as fair values.
(2) Notes and accounts receivable-trade
Fair values of sales finance receivables are calculated on the discount method by the expected rate applied to newloan contract, on each receivable classified into a certain term.
Notes and accounts receivable-trades except sales finance are settled in short term and those fair values are approximately equal to the book values. Therefore, book values are used as fair values.
(3) 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 since they are settled in short term andthose fair values are approximately equal to the book values.

— 14 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Liabilities:(1) Accounts payable-trade, (2) Short-term loans payable and (4) Accrued expenses
Since these are settled in short term and those fair values are approximately equal to the book values, such bookvalues are used.
(3) Current portion of long-term loans payable and (6) Long-term loans payable
These fair values are measured by discounting. The discounting is based on the estimated interest rates at whichsimilar new loans with same amount of principal and interest could have been borrowed.
(5) Bonds with subscription rights to sharesWith respect to fair values of bonds with subscription rights to shares, they are calculated based on the prices offered by financial institutions, etc.
Derivatives:
Please refer to Note 5 (d) Derivative transactions.

*2. Financial instruments whose fair value cannot be reliably determined

Millions of yen

2019

2018

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

¥18,668¥17,682

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

30,02324,943

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

2,216

2,880

Available-for-sale securities

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

*3. The amounts to be redeemed after the account settlement date of monetary receivables and available-for-sale securities
Millions of yen
2018

2019
Over 1 year,
Within5 years

Over 5 years,
Within
10 yearsOver
10 years¥509,717

¥—

¥—

¥—

281,805

163,319575—

189,046¥980,570—¥163,319—¥575

Within1 yearCash and deposits
Notes andaccounts
receivable- trade
Securities andinvestment
Securities withmaturities
Total

Over 1 year,
Within5 years

Over 5 years,
Within
10 yearsOver
10 years¥690,418

¥—

¥—

¥—

244,273

144,236462—

46,000256,695¥46,000 ¥1,191,387—¥144,236—¥462

16,000¥16,000— 15 —SUZUKI MOTOR CORPORATION

Within1 year

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

2019
Carrying
Amount2018

Acquisition
cost

Difference

Carrying
Amount¥68,280¥133,196

Acquisition
cost

Difference¥45,588¥87,608

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

¥47,897¥116,177(2) Bonds................................................

—

—

—

—

—

—

(3) Others...............................................

571,252

502,530

68,722562,361

490,62171,739Sub-Total¥687,430¥550,427¥137,002¥695,558¥536,210¥159,348¥5,546¥5,703¥(157)(3,155)

Securities for which the carrying amount does not exceed the acquisition costs(1) Stocks...............................................

¥2,429¥3,047¥(618)(2) Bonds................................................

42,66046,000(3,339)12,84416,000(3) Others...............................................

40,00040,000—40,00040,000—Sub-Total¥85,089¥89,047¥(3,958)¥58,391¥61,703¥(3,312)

Total¥772,519¥639,475¥133,044¥753,949¥597,913¥156,035

b. Available-for-sale securities soldMillions of yen

2019

2018

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

¥914,804¥837,716

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

158

1,281

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

9—c. Marketable securities impaired / Loss on valuation of securities
Year ended 31 March 2019
The Group recognized impairment of 257 million yen on available-for-sale securities (257 million yen on available-forsale securities with market value). With respect to impairing securities with a market value, if the market value at the endof 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 pricehas significantly declined compared to the acquisition cost, the Group recognizes impairment to the extent deemed necessary based on recoverability.
Year ended 31 March 2018
The Group recognized impairment of 352 million yen on available-for-sale securities (53 million yen on available-for-salesecurities with market value and 299 million yen on shares of unconsolidated subsidiaries). 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 toimpairing 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.

— 16 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(d) Derivative transactions
The contract/notional amounts of derivatives which are shown in the below table do not represent the Group’s exposure tomarket risk. With respect to fair values of derivatives which are shown in the below tables, commodity transactions are valued
based on market price. Other transactions are valued based on the price offered by financial institutions.
a. Derivative transactions to which hedge accounting is not applied
Millions of yen(1) Currency-related transactions (non-market transactions)
2018

2019
Type
Foreign currency
forward contracts
Selling
USD
BuyingUSD
EUR
JPY
Cross currency
swap
Pay JPY
receive EUR
Total

Contract/
notional
amountAmountdue after
one year

Fair value

Contract/
notional
amountAmountdue after
one year

Fair value

¥—

¥—

¥—

¥—

¥432

¥—

¥3

¥3

31,543
996
7,200

—
—
—

(505)
(6)
37

(505)
(6)
37

13,015
1,239
8,500

—
—
—

44
2
304

44
2
304

11,300¥51,039

11,300¥11,300

1,188
¥714

1,188
¥714

—
¥23,187

—
¥—

—
¥355

—
¥355

Gain
(loss)(2) Interest and currency related transactions (non-market transactions)Gain(loss)

Millions of yen
2018
Amountdue after
Fair value
one yearContract/
notional
amount2019
Amountdue after
Fair value
one yearGain(loss)

Contract/
notional
amountCross currency
Interest rate swap
Pay fixed
receive floating
Pay INR
receive USD¥12,591¥12,591¥(1,132)¥(1,132)¥2,576

¥858

¥ 96

¥ 96

Pay fixed
receive floating
Pay THB
receive USD

11,600

—

(462)

(462)

13,747

—

(83)

(83)

Type

Pay fixed
receive floating
Pay IDR
receive USD
Total

Gain
(loss)

—

—

—

—

2,656

—

(105)

(105)

¥24,192¥12,591¥(1,595)¥(1,595)¥18,980¥858¥ (91)¥ (91)— 17 —SUZUKI MOTOR CORPORATION

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

Millions of yen
2018

2019
Type

Contract/
notional
amountAmountdue after
one year

Fair value

Gain(loss)

Contract/
notional
amountAmountdue after
one yearGain(loss)

Fair value

Commodity
futures contract
BuyingTotal¥4,171

¥—

¥193

¥193

¥5,129¥—¥(212)¥(212)¥4,171

¥—

¥193

¥193

¥5,129¥—¥(212)¥(212)(4) Earthquake-related transactions
Since fair values for derivative contract relating to earthquakes were not measured due to characteristic of instruments,
they are not accounted for at fair values.
b. Derivative transactions to which hedge accounting is applied(1) Currency-related transactions

Millions of yen

2019
Type
Contract/
Amount due
Contract/
Fair value
notional amount after one year
notional amountForeign currency forward contracts (Principle hedge accounting)Selling (Principal hedged item: Accounts receivable-trade)
USD¥8,767¥—¥119¥2,128
EUR
1,304
—
18
8,314
CAD
483
—
6
238
AUD
1,535
—
(128)
2,617
NZD
664
—
9
937
GBP
4,157
—
(21)
5,017
MXN
2,962
—
34
3,369
PLN
2,196
—
22
1,286
INR
3,021
—
(33)
—
Buying (Principal hedged item: Accounts payable-trade)
THB
2,522
—
(25)
697
USD
—
—
—
111
Buying (Principal hedged item:Current portion of long-term loans payable)
JPY
—
—
—
10,000Foreign currency forward contracts (Special hedge accounting)Selling (Principal hedged item: Accounts receivable-trade)
USD
5,034
—
*
998
EUR
18,455—*
13,588
CAD
89
—
*
153
AUD
855
—
*
403
NZD
611
—
*
625
GBP
17,505
—
*
7,900
MXN
125
—
*
819
PLN
2,879
—
*
3,879
CNY
46
—
*
1,063
INR
91
—
*
—
Buying (Principal hedged item: Accounts payable-trade)
THB
2,034
—
*
2,191
Total
¥75,345¥—¥0¥66,3422018
Amount due
after one year

Fair value

¥—
—
—
—
—
—
—
—
—

¥(2)
136
0
68
10
4
(55)
23
—

—
—

(0)
1

—

144

—
—
—
—
—
—
—
—
—
—

*
*
*
*
*
*
*
*
*
—

—
¥—

*
¥330

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

— 18 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(2) Interest and currency related transactions

Millions of yen

2019
Contract/
Amount due
notional amount after one year
Interest rate swap (Special hedge accounting)
Pay fixed
Long-term
receive floating debt
¥12,500¥12,500
Cross currency interest rate swap (Principle hedge accounting)
Pay fixed
receive floating Long-term
Pay IDR
debt
receive USD
26,05324,917
Cross currency interest rate swap (Special hedge accounting)
Pay fixed
receive floating
Pay JPY
receive USD
69,172
69,172Long-termdebt
Pay fixed
receive fixed
Pay JPY
receive EUR
—
—
Total
¥107,725¥106,589
Type

Principal
hedged item

Fair value

2018
Contract/
Amount due
notional amount after one year*

¥12,500¥12,500*(89)

20,504

16,467(176)*

59,172

59,172*—¥(89)

11,300¥103,476

11,300¥99,439*¥(176)* Since these transactions are handled together with hedged items, their fair values are included in that of hedged items.

— 19 —SUZUKI MOTOR CORPORATION

Fair value

Consolidated Financial Statement

NOTE 6: Bonds with subscription rights to shares(1) Name of the bond(2) Total issue amount(3) Issue price(4) Offer price(5) Balance as of 31 March 2019
(Millions of yen)
(6) Coupon(7) Closing and issue date(8) Redemption price(9) Redemption at maturity,
Early redemption and Cancellationby acquisition(10) Matters concerning the stockacquisition rights
i. Type of share to be issued upon
exercise of the stock acquisition rights
ii. Total number of stock acquisitionrightsiii. Conversion priceiv. Exercise period andSupplementary 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 stockacquisition rights

vii. Adjustments of the conversion price(11) Security or guarantee(12) Use of proceeds

SUZUKI MOTOR CORPORATION Euro Yen Zero Coupon (subject to the maximum number of shares to bedelivered) Convertible Bond due 2021
100 billion yen plus the aggregate principal amount of
the bonds in respect of replacement certificates of thebonds with stock acquisition rights
100.5% of principal amount103.0% of principal amountSUZUKI MOTOR CORPORATION Euro Yen Zero Coupon (subject to the maximum number of shares to bedelivered) Convertible Bond due 2023

2,975

8,560

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

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

Common stock of the Company

Same as on the left

Same as on the left
100.0% of principal amount
102.5% of principal amount

10,000 units plus the units of the aggregate principal
amount of the bonds in respect of replacement certificates of the bonds with stock acquisition rights divided
by 10 million yen
4,093.1 yen (please refer to vii.)
From 15 April 2016 to 17 March 2021
[Automatic-acquisition-upon-exercise clause (subject
to the maximum number of shares to be delivered)]
Exercising by 31 December 2020
[One-time acquisition clause (subject to the maximum
number of shares to be delivered)]
Giving notice from 31 March 2020 to
16 December 2020

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

[Contingent conversion mechanism (130%)][Same as on the left]
Until 31 December 2020
Until 31 December 2022
The bonds in respect of the relevant stock acquisition rights shall be contributed upon exercising of each stockacquisition right, and the price of the bonds shall be equal to the principal amount of the bonds.
The amount of capital stock increased in case the stocks are issued by exercising stock acquisition rights shall behalf 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 from such calculation shall be rounded up.
The increase in capital surplus shall be obtained by subtracting the capital stock increased from the maximum
increase of capital stock and etc.
The dividend of fiscal year end retained earnings was approved as 37 yen per shareand the annual dividend was determined as 74 yen per share during the Ordinary
General Meeting of Shareholders held on 27 June 2019.
By the approval and determination, the conversion price of Euro Yen Zero Coupon (subject to the maximum number of shares to be delivered) Convertible Bond due 2021 and Euro Yen Zero Coupon (subject to the maximum
number of shares to be delivered) Convertible Bond due 2023 have been adjusted to 4,068.2 yen from 4,093.1
yen retroactively since 1 April 2019 in accordance with the clause of Adjustments of the Conversion Price in theguideline for the bonds.
None
Proceeds from the issuance of the bonds shall be used as strategic investment for accelerating the Group’s midterm management plan and for strengthening its competitive position.

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

2019

2018

¥157,653¥190,755

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

23

11¥157,676¥190,766— 20 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Long-term debts were as follows:
Millions of yen

2018

2019
Long-term loans payable maturing through 2023
Unsecured..........................................................................

¥206,250¥192,943

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

34

13

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

13,862

13,217¥220,147¥206,175

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

The aggregate annual maturities of long-term debts excluding other interest-bearing debts as of 31 March 2019 were as follows:Year ending 31 MarchMillions of yen

2021........................................................................................

¥ 66,930

2022........................................................................................

120,4902023........................................................................................

18,863

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

—¥206,284

Assets pledged as collateral were as follows:
Millions of yen

2018

2019
Merchandise and finished goods..........................................

¥15,961¥ —Buildings and structures........................................................

475

524

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

97

97¥16,533¥621

Secured liabilities were as follows:
Millions of yen

2018

2019
Short-term loans payable.......................................................

¥7,520

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

¥ —

219

228

¥7,740¥228

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

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

2019

2018

¥300,000¥250,000

Actual loan balance................................................................
Balance——¥300,000¥250,000— 21 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

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

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

2019

2018

¥166,888
9,168
890
462
(6,775)
15,168284¥186,087¥162,076
8,719
467
309
(5,388)423
282¥166,888(b) Reconciliation of pension assets from the opening balance to the closing balance
Millions of yen

2018

2019
Opening balance of pension assets.....................................

¥101,706¥99,021

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

2,213

1,741

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

(1,461)(980)

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

6,023

5,688

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

(5,027)(3,808)Others...................................................................................

(181)

44

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

¥103,273¥101,706(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

2019

2018

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

¥129,345¥115,760

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

(103,273)(101,706)

26,072

14,053

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

56,741

51,128

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

¥82,813¥65,181

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

¥82,813¥65,224

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

—

(42)

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

¥82,813¥65,181— 22 —SUZUKI MOTOR CORPORATION

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

2018

2019
Service cost............................................................................

¥9,168¥8,719Interest cost............................................................................

890

467

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

(2,213)(1,741)
950

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

435

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

118

1

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

105

(197)

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

¥8,504¥8,199(e) Adjustment for retirement benefits (before tax effect)
Breakdown of adjustment for retirement benefits recognized was as follows:
Millions of yen

2018

2019
Past service cost....................................................................

¥(14,146)¥(340)

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

(1,514)(435)¥(15,660)¥(776)Total(f) Accumulated adjustment for retirement benefits (before tax effect)
Breakdown of accumulated adjustment for retirement benefits recognized was as follows:
Millions of yen

2019

2018

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

¥(17,078)¥(2,932)

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

(13,835)(12,321)

Total¥(30,914)¥(15,253)

2019

2018

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

38.3%

41.7%

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

39.7%

38.7%

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

22.0%

19.6%

Total

100.0%

100.0%

b. Method to determine long-term expected rate of return on pension assets
Long-term expected rate of return on pension assets was determined by considering the current and anticipated future
portfolio of pension assets and the long-term performance of various asset classes that comprise pension assets.
(h) Actuarial assumptions
2019

2018

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

mainly 0.15%

mainly 0.15%

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

mainly 1.80%

mainly 1.80%

3. Defined contribution plan
Year ended 31 March 2019
Contribution to defined contribution plan by the Company and consolidated subsidiaries was 223 million yen.
Year ended 31 March 2018
Contribution to defined contribution plan by the Company and consolidated subsidiaries was 231 million yen.

— 23 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

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

2019

2018

¥70,353¥67,553

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

65,67345,921

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

20,94021,16013,379Deferred tax assets
Impairment loss and Excess-depreciation........................

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

13,008Deferred assets...................................................................

2,556

2,601

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

71,78055,420

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

244,314206,035

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

(25,353)(34,011)

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

¥218,960¥172,024

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

¥(15,159)¥(20,256)

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

(8,090)(8,090)Reserve for advanced depreciation of noncurrent assets....

(3,818)(3,850)

Deferred tax liabilities

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

3,635

3,630

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

(23,433)(28,566)

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

¥195,527¥143,458(b) Breakdown of the differences between the statutory tax rate and the effective tax rate

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

2019

2018

29.99%

30.21%Tax rate difference..............................................................

1.11%

1.64%

Tax credit.............................................................................

(4.80)%(2.30)%

Retained earnings of subsidiaries etc. .............................

(1.84)%

0.22%

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

(3.85)%(1.50)%

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

20.61%

28.28%— 24 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

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

2019

2018

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

¥92,216¥73,240

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

84,52577,684

Wages and salaries................................................................

92,81486,183

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

158,086

139,390

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

722

(209)

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

80,31958,194Retirement benefit expenses.................................................

4,005

4,214

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

1,215

1,968

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

2,457

1,434

“Advertising expenses”, which was presented separately in the previous fiscal year, is not presented in the current fiscal year due
to the quantitative materiality. The amount of “Advertising expenses” was 78,508 million yen in the previous fiscal year.

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

Millions of yen

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

2019

2018

¥158,086¥139,390

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

2019

2018

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

¥509,717¥690,418

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

189,046

256,695

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

(66,620)(119,571)

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

(159,046)(226,695)¥473,097¥600,846— 25 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 14: Other comprehensive income
Millions of yen

2019

2018

Gain (loss) arising during the period.................................

¥18,660¥42,073

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

(39,910)(24,303)

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

(21,250)

17,769Valuation difference on available-for-sale securities

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

5,238(1,732)

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

¥(16,012)¥16,036

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

¥1,761¥1,247

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

(1,981)(2,778)Before tax effect..................................................................

(219)(1,530)Tax effect.............................................................................

5297

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

¥(214)¥(1,232)¥(30,008)¥(35,889)

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

4,689

(46)

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

¥(25,318)¥(35,936)

Gain (loss) arising during the period.................................

¥(16,107)¥(1,240)

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

446

464

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

(15,660)(776)

Adjustment for retirement benefit

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

4,812

261

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

¥(10,848)¥(514)

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

¥(6,565)¥234

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

¥(58,958)¥(21,411)

NOTE 15: Cash dividends
Resolutions

Total amount of cash dividends
Cash dividends per share
Record date
Effective dateOrdinary General
Meeting of Shareholders
held on 28 June 2018
¥19,439 million¥44.0031 March 201829 June 2018

Meeting of theBoard of Directors
held on 1 November 2018
¥17,042 million¥37.0030 September 2018
30 November 2018

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

Total amount of cash dividends
Cash dividends per share
Record date
Effective dateOrdinary General
Meeting of Shareholders
held on 27 June 2019¥17,071 million¥37.0031 March 201928 June 2019— 26 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 16: Stock option plans
The Company adopts stock option plan by using subscription rights to shares.
The details of the plans were as follows:
The plan adopted at
28 June 2012

The plan adopted at
27 June 2013

The plan adopted at
27 June 2014

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

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

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

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

92,000 of Common stock of
the Company

49,800 of Common stock of
the Company

32,400 of Common stock of
the Company

Adoption date

20 July 201219 July 201322 July 2014

Terms of exercise 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 date of resignation as the Company’s Director
as well as the Senior Managing Officer or Managing Officer without the role of Director being
served concurrently.
(2) If a person who is allocated subscription rights to shares was dead, the person’s heir shall beable to exercise the rights.

Period during which
subscription rights toshares can be exercised

From 21 July 2012 to 20 July
2042

From 20 July 2013 to 19 July
2043

From 23 July 2014 to 22 July
2044

Number of shares which
subscription rights toshares have not exercised

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

NOTE 17: Contingent liabilities
As of 31 March 2019 and 2018, the Company and some of consolidated subsidiaries had the contingent liabilities as follows:
Millions of yen

2019
Guarantee of indebtedness of affiliates and others..........

¥732— 27 —SUZUKI MOTOR CORPORATION

2018¥1,351

Consolidated Financial Statement

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

Main products and services

Automobile business

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

Motorcycle business

Motorcycles, All-terrain vehicles

Marine business, etc.

Outboard motors, Motorized wheelchairs, Houses

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

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

2019
Automobile
business

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

Motorcycle
business

Marinebusiness, etc.

Total

Adjustment

Consolidated¥3,532,531
303,731¥255,071
3,631¥83,893
17,003¥3,871,496
324,365¥——¥3,871,496
324,365

2,621,420

244,293

55,6672,921,381

480,589

3,401,970

133,050
68
1,425

12,591
33
55

3,284
0
32

148,926
101
1,514

—
—
—

148,926101
1,514

34,805

3,678

661

39,145—

39,145245,597

19,405

3,942

268,945—

268,945

Millions of yen

2018
Automobile
business

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

Motorcycle
business

Marinebusiness, etc.

Total

Adjustment

Consolidated¥3,435,802
355,027¥246,362
4,606¥75,053
14,548¥3,757,219
374,182¥——¥3,757,219
374,182

2,446,239

222,057

47,1052,715,402

625,425

3,340,828

136,293
69
2,366

11,281
55
17

3,302
0
201

150,877
124
2,585

—
—
—

150,877
124
2,585

29,8695,459

180

35,509—35,509198,731

13,502

1,142

213,376—

213,376— 28 —SUZUKI MOTOR CORPORATION

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

2019
Japan

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

India¥1,252,447

Others¥1,308,200

Consolidated¥1,310,848¥3,871,496

Millions of yen

2018
Japan

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

India¥1,116,764

Others¥1,306,616

Consolidated¥1,333,838¥3,757,219(Supplementary information)
The amount of net sales, operating income or loss based on location of the Company and its consolidated subsidiaries
Millions of yen

2019
Japan

EuropeOther
regions

Asia

Total

Eliminations Consolidated

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

¥1,472,710 ¥438,838¥1,777,867¥182,080 ¥3,871,496

669,739

191,957

109,228

1,053

2,142,449

630,795

1,887,096

183,133

150,768

22,981

144,2146,083¥ — ¥3,871,496

971,978 (971,978)—4,843,474 (971,978) 3,871,496
324,047318

324,365

Millions of yen

2018
Japan

EuropeAsia

Otherregions

Total

Eliminations Consolidated

Net Sales
Net sales to external customers.... ¥ 1,381,093 ¥428,974 ¥1,782,112
Internal net sales or transfer
among geographical regions........
Total
Operating income..............................

¥165,038 ¥3,757,219

647,578

190,866

123,917728

2,028,672

619,840

1,906,030

165,766

161,044

17,174

191,3155,101

963,091 (963,091)— 29 ——

4,720,310 (963,091) 3,757,219*Notes: 1. Classification of countries or regions is based on a geographical adjacency.
2. The major countries or regions belonging to classifications other than Japan:
		 (1) Europe..............Hungary, Germany, United Kingdom and France
		 (2) Asia...................India, Pakistan, Indonesia, and Thailand
		 (3) Other regions....United States, Australia, Mexico and Colombia
3. Classification is counted based on the location of the Company and its consolidated subsidiaries.

SUZUKI MOTOR CORPORATION¥ — ¥3,757,219

374,635(453)

374,182

Consolidated Financial Statement

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 consolidated
subsidiaries, which comprise the consolidated balance sheet as of 31 March 2019, and the consolidated statement ofincome, consolidated statement of comprehensive income, consolidated statement of changes in net assets and consolidated statement of cash flows for the year then ended, all expressed in Japanese Yen, and a summary of significant
accounting policies and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statements in accordance with accounting principles generally accepted in Japan, and for such internal control as management determines
is necessary to enable the preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in Japan. Those standards require that we comply
with ethical requirements and we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the consolidated
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks ofmaterial 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, while the purpose of
the financial statement audit is not express an opinion on the effectiveness of the entity’s internal control. An audit also
includes evaluating the appropriateness 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 present fairly, in all material respects, the financial position of Suzuki
Motor Corporation and its consolidated subsidiaries as at 31 March 2019, and their financial performance and cash flows
for the year then ended in accordance with accounting principles generally accepted in Japan.

Seimei Audit Corporation
Tokyo, Japan
27 June 2019— 30 —SUZUKI MOTOR CORPORATION