ANNUAL REPORT2018

FINANCIAL SECTIONCONTENTS
Five-Year Summary...................................................................................... 19
Consolidated Financial Statement............................................................... 20
Consolidated Balance Sheets.............................................................................. 20
Consolidated Statement of Income andConsolidated Statement of Comprehensive Income....................................... 22
Consolidated Statement of Changes in Net Assets.............................................. 24
Consolidated Statement of Cash Flows............................................................... 26
Notes to Consolidated Financial Statements....................................................... 27
Independent Auditor’s Report.............................................................................. 47— 18 —SUZUKI MOTOR CORPORATIONFive-Year Summary
SUZUKI MOTOR CORPORATIONCONSOLIDATED
Millions of yen(except per share amounts)

Years ended 31 March

2018

2017

2016

2015

2014

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

¥3,757,219¥3,169,542¥3,180,659¥3,015,461¥2,938,314

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

215,730

159,956

116,660

96,862

107,484

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

488.86362.54234.98172.67

191.60Fully diluted...............................

473.74362.48234.92172.63191.57

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

74.00

44.00

32.00

27.00

24.00

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

1,595,227

1,387,041

1,187,703

1,701,390

1,494,357

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

1,941,081

1,955,973

1,632,630

2,008,729

1,790,832

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

3,340,828

3,115,985

2,702,008

3,252,800

2,874,074

Depreciation and amortisation.....

150,877

163,397

168,315

134,377

117,188

Net income per share:— 19 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement
Consolidated Balance Sheets
As of 31 March 2018 and 2017

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2018

2017

¥ 600,846¥ 614,031

388,973349,224ASSETS
Current assets:
Cash and cash equivalents *NOTE 12 ....................................
Receivables:
Notes and accounts receivable-trade *NOTE 4 .................
Allowance for doubtful accounts....................................

(4,769)(4,821)Inventories...........................................................................

352,916

332,116

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

122,092

113,845

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

481,022551,576

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

1,941,081

1,955,973

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

280,866

261,130

NOTE 6 ..........................................

Buildings and structures *454,347

438,043

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

1,217,050

1,363,140

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

585,610396,523

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

106,393

48,2232,644,269

2,507,061

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

(1,840,003)(1,750,717)

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

804,265

756,344

Investment securities *NOTE 4 ...............................................

517,693

314,594

Investments in affiliates *NOTE 4 ............................................

35,50952,841NOTE 8 ..................................

42

44

NOTE 9 ..................................................

Deferred tax assets *23,471

21,140

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

18,764

15,047

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

595,481403,667

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

¥3,340,828¥3,115,985

Property, plant and equipment:

Investments and other assets:

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

— 20 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

As of 31 March 2018 and 2017

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2018

2017

¥ 97,598¥ 96,643

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term loans payable *NOTE 4 and 6 ..................................
Current portion of long-term loans payable *NOTE 4 and 6 ......

93,157

119,958

Accounts payable-trade *NOTE 4 ..........................................

443,916

428,063

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

68,322

83,070

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

40,59831,863

Accrued expenses *NOTE 4 ...................................................

215,335

191,068

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

105,106

76,995

Deferred tax liabilities *NOTE 9 ...............................................

929

55

Others *NOTE 6 .......................................................................

177,305

160,402

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

1,242,270

1,188,121

Noncurrent liabilities:
Bonds with subscription rights to shares *NOTE 4 and 5 ..........

194,211200,400

192,943

222,870

Liabilities for retirement benefits *NOTE 8 ..............................

65,22463,099Provision for disaster .........................................................

1,914

1,976

Deferred tax liabilities *NOTE 9 ...............................................

1,175

1,384

47,86051,091Long-term loans payable *NOTE 4 and 6 ...................................

Others *NOTE 6........................................................................
Total noncurrent liabilities...................................................

503,330

540,822

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

1,745,601

1,728,943

138,064

138,014

Net assets:
Shareholders’ equity:
Capital stock:
Common stock:
Authorised: 1,500,000,000 shares Issued:
as of 31 March 2018: 491,018,100 shares
as of 31 March 2017: 491,000,000 shares....................
Capital surplus....................................................................

143,868

144,035

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

1,247,242

1,058,549

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

(189,126)(191,051)

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

1,340,047

1,149,548

98,827

Accumulated other comprehensive income:
Valuation difference on available-for-sale securities.........

108,528

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

22

1,269

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

(140,136)(119,236)

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

(10,925)(10,543)

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

(42,511)(29,683)

Subscription rights to shares *NOTE 15 ..............................

126

126

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

297,564

267,049

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

1,595,227

1,387,041

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

¥3,340,828¥3,115,985— 21 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income(Consolidated Statement of Income)Years ended 31 March 2018 and 2017

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2018

2017

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

¥3,757,219¥3,169,542

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

2,651,473

2,261,914

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

1,105,745

907,627

Selling, general and administrative expenses *NOTE 10 and 11....

731,563

640,942

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

374,182

266,685

35,633

16,827

Other income (expenses):
Interest and dividends income...........................................
Interest expense.................................................................

(8,152)(4,771)Equity in earnings (losses) of affiliates...............................

(13,870)

2,327

NOTE 3.........................................................

Impairment loss *(2,585)(39,936)

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

(1,173)54,067

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

384,033

295,200

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

121,527

92,263

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

(12,933)

5,319

108,593

97,583

275,439

197,616

Income taxes: *NOTE 9

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

59,70937,660Net income attributable to owners of the parent..............

¥ 215,730¥ 159,956

Yen

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

¥

488.86¥362.54

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

473.74362.48Cash dividends per share...................................................

74.00

44.00

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

— 22 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(Consolidated Statement of Comprehensive Income)Years ended 31 March 2018 and 2017

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2018

2017

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

¥275,439¥197,616

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

16,03628,375

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

(1,232)505

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

(35,936)

3,634

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

(514)

(655)

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

234(2,318)

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

(21,411)29,541

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

254,027

227,158

Comprehensive income attributable to owners of the parent...

202,870

177,276

Comprehensive income attributable to non-controlling interests...

51,15749,881

Comprehensive income attributable to:

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

— 23 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Consolidated Statement of Changes in Net Assets
Years ended 31 March 2018 and 2017

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES

Thousandsof sharesof common
stock

Total
Shareholders’equityCapitalstock

CapitalsurplusRetainedearnings

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

Dividends from surplus......

—

—

—

(15,003)—(15,003)

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

—

—

—

159,956—

159,956

Purchase of treasury stock....

—

—

—

—

(4)

(4)

Disposal of treasury stock......

—

—

(60)

—

122

62

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

—

—

60

(60)

—

—

Capital increase ofConsolidated subsidiaries.....

—

—

(130)

—

—

(130)

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

—

—

—

—

—

—

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

—

—

(130)

144,892

118

144,880

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

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

Balance as of
31 March 2016

Balance as of
31 March 2017

Balance as of
31 March 2018— 24 —SUZUKI MOTOR CORPORATION

Treasury stockConsolidated Financial Statement

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES
Balance as of
31 March 2016

Valuationdifferenceonavailablefor-salesecurities

Deferred
gains orlosses onhedgesForeigncurrencytranslation
adjustment

Total
Accumulated accumulated
adjustment
otherfor retirement comprehensive
incomebenefits

Subscription
rights toshares

Noncontrollinginterests

Total net
assets¥77,624¥536¥(115,551)¥(9,580)¥(46,970)¥188

Dividends from surplus......

—

—

—

—

—

—

—

(15,003)

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

—

—

—

—

—

—

—

159,956

Purchase of treasury stock....

—

—

—

—

—

—

—

(4)

Disposal of treasury stock......

—

—

—

—

—

—

—

62

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

—

—

—

—

—

—

—

—

Capital increase ofConsolidated subsidiaries.....

—

—

—

—

—

—

—

(130)

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

21,202732(3,685)(962)

17,287(62)37,23254,458

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

21,202732(3,685)(962)

17,287(62)37,232

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

¥126

—

—

—

—

—

—

—

98

Balance as of
31 March 2017
Issuance of new shares.....
Dividends from surplus......

¥229,816 ¥1,187,703¥267,049 ¥1,387,041

—

—

—

—

—

—

—

(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 ofConsolidated 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

Balance as of
31 March 2018

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

— 25 —SUZUKI MOTOR CORPORATION¥297,564 ¥1,595,227

Consolidated Financial Statement

Consolidated Statement of Cash Flows
Years ended 31 March 2018 and 2017

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2018

2017

¥384,033
150,8772,585(81)(35,633)
8,152
1,064
13,870(2,550)(1,281)(41,940)(23,449)
5,710
29,72039,067530,146
36,062(8,649)(112,387)
445,171¥295,200
163,397
39,936(812)(16,827)
4,771
876(2,327)(667)(47,775)(17,023)(50,386)
45,218
6,473
20,370440,423
15,412(4,613)(84,906)
366,315(141,102)
96,086(729,488)(38,552)
8,367(297,947)

775,840(205,854)(137,066)(341,585)

268,519(192,054)(36,898)(288,564)

1,443
57,000(120,874)(102,949)
83,172(63,449)—(6,070)200,500
—

1,005
(6)
(25,146)(20,789)(484)(113,922)(2,848)(13,185)
614,031¥600,846—(4)(15,003)(9,417)(3,342)89,505(3,313)
163,942450,088¥614,031

Cash flows from operating activities
Income before income taxes etc.......................................
Depreciation and amortisation...........................................
Impairment loss..................................................................
Increase (decrease) in allowance for doubtful accounts......
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...........................................................................
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............................
Proceeds from issuance of bonds with subscription
rights to shares...................................................................
Redemption of bonds.........................................................
Proceeds from share issuance to non-controllingshareholders.......................................................................
Purchase of treasury stock.................................................
Cash dividends paid..........................................................
Cash dividends paid to non-controlling interests..............
Others, net...........................................................................
Net cash provided by (used in) financing activities..........
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period *NOTE 12

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

— 26 —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 2018 and 2017 include the accounts of the Group, andthe numbers of consolidated subsidiaries were 131 and 136 respectively. In addition, the numbers of investments in affiliatedcompanies for the years ended 31 March 2018 and 2017 were 31 and 32 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, amortised on a straight-line
basis over a period of five years after appropriate adjustments.
The account settlement date of 19 consolidated subsidiaries is 31 December, however Magyar Suzuki Corporation Ltd. 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 actual ratio of bad debt is appropriated as
general allowance. With respect to specific receivable with higher default possibility, recoverable amount is estimated respectively and uncollectible amount is appropriated.
(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 appropriated as reserve in order to allow for losses from these investments.
(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 Audit & Supervisory Board Members, 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 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 was approved 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 appropriated at the end of the current consolidated fiscal year. Furthermore, for the Directors and Audit & Supervisory Board Members. Of some consolidated subsidiaries, the amount to be paid at the end of the year is posted pursuant totheir regulation on the retirement allowance of Directors and Audit & Supervisory Board Members.
(g) Provision for disaster
Reasonably estimated amount is appropriated for anticipated loss mainly caused by relocation of plants and facilities locatedin the Ryuyo Region in Iwata City, Shizuoka Prefecture where massive tsunami damages caused by Tokai and Tonankai Earthquake are anticipated.
(h) Provision for product liabilities
The provision is appropriated for product compensation related to North American market which is not covered by “Product
Liability Insurance” based on the actual payments.
(i) Provision for recycling expenses
The provision is appropriated for an estimated expense related to the recycle of products of the Company based on number of vehicles owned in the market, etc.
— 27 —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
recognise revaluation loss based on the reasonable standard. If the stock market falls, the Company and its subsidiaries may
incur significant loss on valuation of securities.
Securities have to be classified into four categories: trading securities; held-to-maturity debt securities; investments of theCompany in equity securities issued by consolidated subsidiaries and affiliates; and available-for-sale securities.
According to this classification, securities held by the Company and its subsidiaries are available-for-sale securities. Availablefor-sale securities for which market quotations are available are stated at market value method based on the market values
as of the consolidated account settlement date (the evaluation differences shall be reported as other comprehensive income,and sales costs shall be calculated mainly by moving average method).
Available-for-sale securities for which market quotations are unavailable are stated at cost by moving average method.
(k) Hedge accounting
Gains or losses arising from changes in fair value of the derivatives designated as “hedging instruments” are deferred until thegains and losses on the hedged items or transactions are recognised.
If foreign currency forward contracts meet certain criteria, special exceptional hedge accounting is applied and thesecontracts are handled together with hedged items. If interest rate swap contracts meet certain criteria, 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 thesecontracts are handled together with hedged items.
The derivatives designated as hedging instruments by the Company and its subsidiaries are principally forward exchange
contracts, interest swaps and cross currency interest rate swaps. The related hedged items are foreign currency denominatedtransaction and borrowings.
The Company and its subsidiaries have a policy to utilise the above hedging instruments in order to reduce our exposure to
the risks of the fluctuation of interest rate and foreign exchange. Thus, our purchases of the hedging instruments are limited
to, at maximum, the amounts of the hedged items. The Company and its subsidiaries evaluate effectiveness of their hedging
activities by reference to the accumulated gains or losses on the hedging instruments and the related hedged items from thecommencement of the hedges.
(l) Foreign currency translation
All monetary assets and liabilities denominated in foreign currencies, whether long-term or short-term, are 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 amortisation 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 amortisation 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.

— 28 —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 recognise deferred tax assets and liabilities for the expected
future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.
In making a valuation for the possibility of collection of deferred tax assets, the Company and its subsidiaries estimate their
future taxable income reasonably. If the estimated amounts of future taxable income decrease, deferred tax assets may decrease and income taxes may be posted.
Consolidated tax payment has been applied to the Company and its domestic wholly owned subsidiaries from the fiscal year
ended 31 March 2012.
(p) Retirement benefits
With respect to calculation of retirement benefit obligations, benefit formula basis method is used to attribute expected benefit
to period up to the end of 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 focussing on low-risk investments, this influence should be minimal in
the case 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.
(t) New accounting standards to be applied(1) “Guidance on Accounting Standard for Tax Effect Accounting” (ASBJ Guidance No. 28, revised on 16 February 2018)“Guidance on Recoverability of Deferred Tax Assets” (ASBJ Guidance No. 26, revised on 16 February 2018)
1) Outline
These guidances change the treatment of taxable temporary differences pertaining to shares of subsidiaries andaffiliates in non-consolidated financial statements, and clarify the treatment of recoverability of deferred tax assets for anentity classified as type 1.
2) Scheduled date of application
The aforementioned guidances are scheduled to be applied at the start of the fiscal year ending 31 March 2019.
3) Effect of application of the accounting standards
The effect of the application of the aforementioned guidances on the Group’s consolidated financial statements is underevaluation.
(2) “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 recognisedby 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: Recognise 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 fiscal year ending 31 March 2022.
3) Effect of application of the accounting standards
The effect of the application of the aforementioned standards and guidance on the Group’s consolidated financial statements is under evaluation.
— 29 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 3: Impairment loss
The Group recorded impairment loss in the following group of assets as of 31 March 2017.
Use
Assets for automobile business

Location
Thailand
Asia

Assets for motorcycle business

Asia

Assets for other business
Assets for rent
Idle assets

Japan
Japan
Japan

Classification
Machinery, equipment and vehicles, tools,
furniture and fixtures, etc.
Machinery, equipment and vehicles, etc.
Machinery, equipment and vehicles,
buildings and structures, etc.
Land
Land
Land
Total

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

The assets are divided into groups of the assets for business and the assets for rent respectively, mainly in units of business facilities. With respect to the assets which are decided to be disposed and idle assets which are not expected to be used in the future,
tests of impairment are conducted based on individual assets.
[Assets for business](Suzuki Motor (Thailand) Co., Ltd,)
Suzuki Motor (Thailand) Co., Ltd, a fully owned subsidiary of the Company in Thailand commenced its automobile production in
March 2012, sells its product in theThailand's domestic market and exports worldwide. However, due to slowdown in the domestic
market as well as appreciation of Thai Baht, the performance of the automotive business in Thailand has remained at low level. In
FY2016, the Company carried out the examination on future recoverability of the business assets of Suzuki Motor (Thailand) Co.,
Ltd. Since the examination indicated that the recoverable amount fell below the book value of the assets, the Company decided
to record an impairment loss.
(Others)
Since the examination indicated that the recoverable amount fell below the book value of the assets, the Company decided torecord an impairment loss.
[Assets for rent and idle assets]
The Company reduced the book value of the group of the assets whose market value particularly fell to the recoverable amountand recorded an impairment loss.
The impairment loss consists of ¥6,696 million for buildings and structures, ¥15,320 million for machinery, equipment andvehicles, ¥7,294 million for tools, furniture and fixtures, ¥8,101 million for land, and ¥2,523 million for construction in progress.
The recoverable amount of the asset group is measured by net selling price or value in use, and the land value is evaluated byprice calculated on a rational basis.
The Group recorded impairment loss as of 31 March 2018.
This information is not provided due to its low materiality.

NOTE 4: 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, anddoes not use derivatives for speculation purposes.
b. Type of financial instruments, risks and risk management
With respect to customers’ credit risks from operating receivables such as notes and accounts receivable-trade, in order tomitigate the risks, the Group identifies credit standing of major counterparties and manages due date and receivable balance of each counterparty in line with our rules and regulations for credit control. The Group hedges the risks of the fluctuation exchange rate from operating receivables denominated in foreign currency by forward exchange contract in principle.
Investment securities are mainly stocks of companies with which the Group has business relationship, and with respect tolisted stocks, the Group quarterly identifies those fair values and reports them to the Board of Directors.
Basically, accounts payable-trade is due within one year.

— 30 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Applications of borrowings are fund for operating capital (mainly short-term) and capital expenditures (long-term), and theGroup uses interest-rate swaps or cross currency interest rate swaps for the risks of the fluctuation of interest rate and exchange rate of some long-term borrowings.
Objectives of derivative transactions are foreign currency forward contracts to hedge the risks of the fluctuation of exchange
rate related to receivables and payables denominated in foreign currencies, interest rate swaps to hedge the risks of thefluctuation of interest rate related to borrowings, and cross currency interest rate swaps to hedge the risks of the fluctuation of
exchange rate and interest rate related to borrowings and lending. The Group executes and manages derivatives within theactual demand in line with our rules and regulations which set out the authority to trade. In addition, in using derivatives, theGroup deals with financial institutions which have high credit grade in order to reduce credit risks.
In addition, each company of the Group manages liquidity risk related to accounts payable and borrowings by making afinancial plan.
c. Supplement to fair values of financial instruments
Fair values of financial instruments include values based on quoted prices in active markets and values assessed byrational valuation techniques in case quoted prices are not available. Since the rational valuation techniques include variable factors, the results of valuation may differ when different assumptions are applied. In addition, in Note 4 (d) Derivativetransactions, 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 2018 and 2017 were as follows. Financial instruments whose fair value cannot be reliably measured are not included in the below table.
Millions of yen
2017

2018

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

Fair value

Difference¥ 690,418
391,536¥

Carrying
amount¥ 693,952
349,224¥ 693,952
351,454¥753,949725¥1,834,065
443,916
97,59893,157215,335

753,949
3,300¥1,839,205
443,916
97,59893,235215,335—
636,1022,575
660¥ 5,139 ¥1,679,940—
428,063—
96,643(78)
119,958—
191,068

636,102
2,104¥1,683,613
428,063
96,643
119,809
191,068—
1,443¥ 3,673——148—

194,211275,825

200,400

251,450(51,050)

192,943¥ 1,237,163

192,920¥1,318,831

23
222,870¥(81,668) ¥1,259,003

221,236¥1,308,270

1,634¥(49,267)

153
51

153
51

1,544
296

1,544
296

—
—

Carrying
amount¥ 690,418
388,973

Fair value

Difference—
2,563(81,613)

—
—

—
2,229

* 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 because they are settled in short term
and those fair values are approximately equal to the book values.
— 31 —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 4 (d) Derivative transactions.

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

Millions of yen

2018

2017

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

¥17,682¥17,188

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

24,943

20,514

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

2,880

77

Available-for-sale securities

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

*3. The amounts to be redeemed after the account settlement date of monetary receivables and available-for-sale securities
Millions of yen
2017

2018
Within1 yearCash and deposits
Notes andaccounts
receivable- trade
Securities andinvestment
securities withmaturities
Total¥ 690,418

Over 1 year,
Within5 years¥

Over 5 years,
Within
10 yearsOver
10 years

Over 1 year,
Within5 years

Over 5 years,
Within
10 yearsOver
10 years

—

¥ —

¥—

122,412409—

338,756—¥1,259,111 ¥122,412

—
¥409

—
¥—

Within1 year—¥ 693,952 ¥

462—

226,403—¥462

16,000¥16,000—¥ —244,273

144,236

256,695¥1,191,387—¥144,236¥— 32 —SUZUKI MOTOR CORPORATION

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

2018
Carrying
Amount2017

Acquisition
cost

Difference

Carrying
AmountAcquisition
cost

Difference¥ 87,608¥127,569¥ 50,691¥ 76,878

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

¥ 45,588¥133,196

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

—

—

—

—

—

—

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

562,361

490,62171,739477,832

413,408

64,423

Sub-Total¥695,558¥536,210¥159,348¥605,401¥464,100¥141,301¥¥¥

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

¥

¥

5,546

5,703

¥

(157)

700

758

(58)

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

12,84416,000(3,155)———

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

40,00040,000—30,00030,000—Sub-Total¥ 58,391¥ 61,703¥ (3,312)¥ 30,700¥ 30,758¥

Total¥753,949¥597,913¥156,035¥636,102¥494,858¥141,243(58)

b. Available-for-sale securities soldMillions of yen

2018

2017

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

¥837,716¥337,540

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

1,281

47,775c. Marketable securities impaired / Loss on valuation of securities
Year ended 31 March 2017
The Group recognised impairment of 0 million yen on available-for-sale securities. With respect to impairing securities
with a market value, if the market value at the end of the period has significantly declined compared to the acquisition
cost, the Group recognises impairment to the extent deemed necessary based on recoverability. With respect to impairing securities without a market value, if the real price has significantly declined compared to the acquisition cost, theGroup recognises impairment to the extent deemed necessary based on recoverability.
Year ended 31 March 2018
The Group recognised 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 recognises impairment to the extent deemed necessary based on recoverability. With respect toimpairing securities without a market value, if the real price has significantly declined compared to the acquisition cost,
the Group recognises impairment to the extent deemed necessary based on recoverability.

— 33 —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)
2017

2018
Type
Foreign currency
forward contracts
Selling
USD
BuyingUSD
EUR
JPY
Cross currency
Swap
Buying
JPY
Total

Contract/
notional
amount¥Amountdue after
one year

Fair value

Gain(loss)

¥

¥

432

¥—

3

13,015
1,239
8,500

—
—
—

44
2
304

—
¥23,187

—
¥—

—
¥355

Contract/
notional
amountContract/
notional
amount2018
Amountdue after
Fair value
one yearGain(loss)

¥

¥

¥—

44
2
304

17,432
1,377
13,500

—
—
—

(371)
(6)
221

(371)
(6)
221

—
¥355

13,000¥45,875

—
¥—

354
¥199

354
¥199

(2) Interest and currency related transactions (non-market transactions)
Type

Fair value

565

3

¥

Amountdue after
one yearGain(loss)

2

2

Millions of yen
Contract/
notional
amount2017
Amountdue after
Fair value
one yearGain(loss)

Cross currencyinterest rate swap
Pay fixed
receive floating
Pay INR
receive USD¥ 2,576

¥858

¥ 96

¥ 96

¥—

¥—

¥—

¥—

Pay fixed
receive floating
Pay THB
receive USD

13,747

—

(83)

(83)

—

—

—

—

Pay fixed
receive floating
Pay IDR
receive USD

2,656

—

(105)

(105)

—

—

—

—

Total

¥18,980¥858¥ (91)¥ (91)

¥—

¥—

¥—

¥—

— 34 —SUZUKI MOTOR CORPORATION

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

Millions of yen
2017

2018
Type

Contract/
notional
amountAmountdue after
one year

Fair value

Gain(loss)

Contract/
notional
amountAmountdue after
one year

Fair value

Gain(loss)

Commodity
futures contract
BuyingTotal¥5,129¥—¥(212)¥(212)¥2,376

¥—

¥96

¥96

¥5,129¥—¥(212)¥(212)¥2,376

¥—

¥96

¥96

(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

2018
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¥ 2,128¥—¥ (2)¥ 8,074
EUR
8,314
—
136
—
CAD
238
—
0
—
AUD
2,617
—
68
2,703
NZD
937
—
10
714
GBP
5,017
—
4
779
MXN
3,369
—
(55)
1,095
PLN
1,286
—
23
1,115
Buying (Principal hedged item: Accounts payable-trade)
THB
697
—
(0)
2,555
USD
111
—
1
16
Buying (Principal hedged item: Current portion of long-term loans payable)
JPY
10,000—144—
Foreign currency forward contracts (Exceptional hedge accounting)Selling (Principal hedged item: Accounts receivable-trade)
USD
998
—
*
3,931
EUR
13,588—*
11,930
CAD
153
—
*
236
AUD
403
—
*
775
NZD
625
—
*
451
GBP
7,900
—
*
10,020
MXN
819
—
*
1,677
PLN
3,879
—
*
1,768
CNY
1,063
—
*
—
Buying (Principal hedged item: Accounts payable-trade)
THB
2,191
—
*
3,373
Total
¥66,342¥—¥330¥51,2212017
Amount due
after one year

Fair value

¥—
—
—
—
—
—
—
—

¥ 753
—
—
307
59
19
(32)
(11)

—
—

8
0

—

—

—
—
—
—
—
—
—
—
—

*
*
*
*
*
*
*
*
—

—
¥—

*
¥1,103* Since these foreign currency forward contracts are handled together with hedged items, their fair values are included in that of hedged items.

— 35 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement(2) Interest and currency related transactions

Millions of yen

2018
2017
Principal
Type
Contract/
Amountdue
Contract/
Amountduehedged item
Fair value
notional amount after one year
notional amount after one year
Interest rate swap (special exceptional hedge accounting)
Pay fixed
Long-term
receive floating debt
¥ 12,500¥12,500*¥ 12,500¥ 12,500
Cross currency interest rate swap (Principle hedge accounting)
Pay fixed
receive floating
Pay IDR
receive USD
20,504
16,467(176)
13,631
4,599
Long-termdebt
Pay fixed
receive floating
Pay THB
receive USD———
13,181
13,181
Pay fixed
receive floating
Current
Pay IDR
portion ofreceive USD———
11,219—long-term
Pay fixed
loans
receive floating payable
Pay IDR
receive JPY———
10,000—
Cross currency interest rate swap (Integration hedge accounting)
Pay fixed
receive floating
Pay JPY
receive USD
59,172
59,172*
129,172
59,172Long-termdebt
Pay fixed
receive fixed
Pay JPY
receive EUR
11,30011,300*11,30011,300
Pay fixed
receive floating
Pay CNY
—
—
—
243
243
receive JPY
Long-term
receivable
Pay fixed
receive floating
Pay INR
receive USD
—
—
—
2,720
2,720
Total
¥103,476¥99,439¥(176)¥203,967¥103,717

Fair value

*

(89)

1,086

(430)

(126)

*

*

*

*
¥440

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

— 36 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 5: 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 2018
(Millions of yen)
(6) Coupon(7) Closing and issue date(8) Redemption price(9) Redemption at maturity, Early redemption
and Cancellation by acquisition(10) Matters concerning the stock acquisitionrightsi. Type of share to be issued upon
exercise of the stock acquisition rights
ii. Total number of stock acquisition rights
iii. Conversion priceiv. Exercise period and Supplementary
conditions

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

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

94,261

99,950Zero
1 April 2016
100% of principal amount
31 March 2021 by 100% of principal amount
Early redemption and cancellation by acquisition by the bonds
under certain circumstances are specified in the Information
Memorandum.

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

Common stock of the Company

Same as on the left

10,000 units plus the units of the aggregate principal amountof the bonds in respect of replacement certificates of thebonds with stock acquisition rights divided by 10 million yen
4,116.3 yen (please refer to vii.)
From 15 April 2016 to 17 March 2021
[Automatic-acquisition-upon-exercise clause (subject to the
maximum number of shares to be delivered)]
Exercising by 31 December 2020
[One-time acquisition clause (subject to the maximum numberof shares to be delivered)]
Giving notice from 31 March 2020 to 16 December 2020

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

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

Giving notice from 31 March 2022
to16 December 2022
[Contingent conversion mechanism (130%)][Same as on the left]
Until 31 December 2020
Until 31 December 2022
The bonds in respect of the relevant stock acquisition rights shall be contributed upon exercising ofeach stock acquisition right, and the price of the bonds shall be equal to the principal amount of thebonds.
The amount of capital stock increased in case the stocks are issued by exercising stock acquisitionrights shall be half of the maximum increase of capital stock and etc., calculated in accordance with
Article 17 of the ‘‘Company Calculation Ordinance,’’ and any amount less than one Yen arising fromsuch calculation shall be rounded up. The increase in capital surplus shall be obtained by subtracting
the capital stock increased from the maximum increase of capital stock and etc.
The dividend of fiscal year end retained earnings was approved as 44 Yen per share and the annual
dividend was determined as 74 Yen per share during the Ordinary General Meeting of Shareholders
held on 28 June 2018.
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 beenadjusted to 4,093.1 Yen retroactively since 1 April 2018 in accordance with the clause of Adjustmentsof the Conversion Price in the guideline for the bonds.
None
Proceeds from the issuance of the bonds shall be used as strategic investment for accelerating theGroup’s mid-term management plan and for strengthening its competitive position.

NOTE 6: Short-term debts and long-term debts
Millions of yen

2018

2017

¥190,755¥216,601

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

11

12¥190,766¥216,613— 37 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

Long-term debts were as follows:
Millions of yen

2017

2018
Long-term loans payable maturing through 2022
Unsecured..........................................................................

¥192,943¥222,870

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

13

7

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

13,217

12,540¥206,175¥235,419

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 2018 were as follows:Year ending 31 MarchMillions of yen

2020........................................................................................

¥ 54,496

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

33,0202022........................................................................................

105,439

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

0¥192,956

Assets pledged as collateral as of 31 March 2018:
Millions of yen

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

¥524

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

97
¥621

Secured liabilities as of 31 March 2018:
Millions of yen

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

¥228

NOTE 7: 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

2017

2018
Commitment line contract total..............................................

¥250,000¥250,000

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

——¥250,000¥250,000

Variance— 38 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

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

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

2018

2017

¥162,076
8,719
467
309
(5,388)423
282¥166,888¥152,161
8,706
754
1,832
(5,844)100
4,364¥162,076(b) Reconciliation of pension assets from the opening balance to the closing balance
Millions of yen

2018

2017

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

¥ 99,021¥95,865
1,698

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

1,741

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

(980)

(671)

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

5,688

5,254

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

(3,808)(3,599)Others....................................................................................

44

473

¥101,706¥99,021

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

2018

2017

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

¥115,760¥112,320

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

(101,706)(99,021)

14,053

13,299Defined benefit obligation of unfunded severance plan......

51,12849,755

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

¥65,181¥63,055

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

¥65,224¥63,099

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

(42)

(44)

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

¥65,181¥63,055— 39 —SUZUKI MOTOR CORPORATION

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

2017

2018
Service cost............................................................................

¥8,719¥8,706

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

467

754

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

(1,741)(1,698)

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

950

1,875

Amortisation of past service cost...........................................

1

(333)

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

(197)

110

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

¥8,199¥9,415(e) Adjustment for retirement benefits
Breakdown of adjustment for retirement benefit recognised were as follows:
Millions of yen

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

2018¥(340)

2017¥(433)

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

(435)

(447)

Total

¥(776)¥(881)(f) Accumulated adjustment for retirement benefits
Breakdown of accumulated adjustment for retirement benefit recognised were as follows:
Millions of yen

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

2018¥(2,932)2017¥(2,591)

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

(12,321)(11,885)

Total¥(15,253)¥(14,477)(g) Pension assets
a. Major breakdown of pension assets
Portion of major components to total pension assets were as follows:
2018

2017

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

41.7%

45.4%

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

38.7%

37.6%

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

19.6%

17.0%

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
2018

2017

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

mainly 0.15%

mainly 0.15%

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

mainly 1.80%

mainly 1.80%

3. Defined contribution plan
Year ended 31 March 2017
Contribution to defined contribution plan by the Company and consolidated subsidiaries was 340 million yen.
Year ended 31 March 2018
Contribution to defined contribution plan by the Company and consolidated subsidiaries was 231 million yen.

— 40 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

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

2018

2017

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

¥67,553¥54,224

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

45,921

38,171

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

21,16021,698Loss on valuation of securities...........................................

13,37912,586

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

2,601

3,210

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

55,42066,259Deferred tax assets

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

206,035

196,151

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

(34,011)(38,934)

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

¥172,024¥157,217¥(20,256)¥(19,590)

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

(8,090)(8,682)

Reserve for advanced depreciation of noncurrent assets....

(3,850)(3,678)Others..................................................................................

3,630

8,279

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

(28,566)(23,671)

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

¥143,458¥133,545* Net amounts of deferred tax assets are included in the following accounts in the consolidated balance sheets.
Millions of yen

2018

2017

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

¥122,092¥113,845

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

23,471

21,140Current liabilities – Deferred tax liabilities..........................

(929)

(55)

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

(1,175)(1,384)(b) Breakdown of the differences between the statutory tax rate and the effective tax rate
2018

2017

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

30.21%

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

1.64%

4.15%

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

(2.30)%(3.01)%

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

(1.28)%

1.7%

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

28.28%

33.06%— 41 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 10: Selling, general and administrative expenses
Main items of selling, general and administrative expenses were as follows:
Millions of yen

2018

2017

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

¥73,240¥65,210Advertising expenses.............................................................

78,50874,30356,468

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

77,684

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

86,18380,426

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

139,390

131,539

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

(209)

(651)

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

58,194

41,692
4,099

Retirement benefit expenses.................................................

4,214

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

1,968

12

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

1,434

1,865

NOTE 11: Research and development costs
Research and development costs included in selling, general and administrative expenses were as follows:

Millions of yen

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

2018

2017

¥139,390¥131,539

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

2018

2017

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

¥690,418¥693,952

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

256,695

338,756

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

(119,571)(79,920)

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

(226,695)(338,756)¥600,846¥614,031— 42 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 13: Other comprehensive income
Millions of yen

2018

2017

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

¥42,073¥62,839

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

(24,303)(51,445)

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

17,76911,393

Valuation difference on available-for-sale securities

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

(1,732)

16,982

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

¥16,036¥28,375

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

¥1,247¥5,324

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

(2,778)(4,554)

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

(1,530)770

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

297

(264)

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

¥(1,232)¥505¥(35,889)¥3,634Foreign currency translation adjustment
Gain (loss) arising during the period.................................
Reclassification adjustments..............................................

(46)

—

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

¥(35,936)¥3,634Gain (loss) arising during the period.................................

¥(1,240)¥(1,684)

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

464

803

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

(776)

(881)

Adjustment for retirement benefit

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

261

225

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

¥(514)¥(655)

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

¥234¥(2,318)

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

¥(21,411)¥29,541

NOTE 14: Cash dividends
Resolutions

Total amount of cash dividends
Cash dividends per share
Record date
Effective dateOrdinary General
Meeting of Shareholders
held on 29 June 2017¥11,914 million¥27.0031 March 201730 June 2017

Meeting of theBoard of Directors
held on 2 November 2017¥13,239 million¥30.0030 September 201730 November 2017

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 28 June 2018
¥19,439 million¥44.0031 March 201829 June 2018
— 43 —SUZUKI MOTOR CORPORATION

Consolidated Financial Statement

NOTE 15: 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 ofsubscription rights toshares(1) A person who is allocated subscription rights to shares shall be able to exercise share subscription rights only up until 10th day (the next business day if the 10th day falls on a non-business day) from the day immediately following the date of resignation as the Company’s Director
as well as the Senior Managing Officer or Managing Officer without the role of Director being
served concurrently.
(2) If a person who is allocated subscription rights to shares was dead, the person’s heir shall beable to exercise the rights.

Period during which
subscription rights toshares can be exercised

From 21 July 2012 to 20 July
2042

From 20 July 2013 to 19 July
2043

From 23 July 2014 to 22 July
2044

Number of shares which
subscription rights toshares have not exercised

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

NOTE 16: Contingent liabilities
As of 31 March 2018 and 2017, the Company and some of consolidated subsidiaries had the contingent liabilities as follows:
Millions of yen

2018
Guarantee of indebtedness of affiliates and others..........

¥1,351— 44 —SUZUKI MOTOR CORPORATION

2017¥2,051

Consolidated Financial Statement

NOTE 17: 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 organisation and nature of products and services.
The segment which was previously stated as “Marine and Power products, etc.” has been changed to “Marine business, etc.”from this consolidated fiscal year. This change in the segment name does not affect the segment information.
Reportable segment of the previous fiscal year is reported as a renamed segment.
Main products and services of each segment are as follows:
Segment

Main products and services

Automobile business

Minivehicles, Sub-compact vehicles, Standard-sized vehicles

Motorcycle business

Motorcycles, All-terrain vehicles

Marine business, etc.

Outboard motors, Motorised wheelchairs, Electro senior vehicles, Houses

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

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

2018
Automobile
business

Net Sales:
Net sales to external customers......
Segment profit..............................
Segment assets............................
Other content:
Depreciation.....................................
Amortisation 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¥——¥3,757,219
374,182¥3,435,802
355,027¥246,362
4,606¥75,053
14,548¥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

Millions of yen

2017
Automobile
business

Net Sales:
Net sales to external customers......
Segment profit (loss)....................
Segment assets............................
Other content:
Depreciation.....................................
Amortisation 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¥——¥3,169,542
266,685¥2,895,619
255,060¥206,289(930)¥67,633
12,555¥3,169,542
266,685

2,205,138

204,159

46,3752,455,673

660,311

3,115,985

150,475
1,547
33,077

9,796
54
5,343

3,124
0
1,514

163,397
1,602
39,936———

163,397
1,602
39,936

48,9573,796

87

52,841—

52,841

181,268

15,814

1,699

198,782—

198,782— 45 —SUZUKI MOTOR CORPORATION

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

2018
Japan

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

India¥1,116,764

Others¥1,306,616

Consolidated¥1,333,838¥3,757,219

Millions of yen

2017
Japan

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

India¥1,037,546

Others¥1,018,813

Consolidated¥1,113,182¥3,169,542(Supplementary information)
The amount of net sales, operating income or loss based on location of the Company and its consolidated subsidiaries
Millions of yen

2018
Japan

Europe

Other
areas

Asia

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

¥165,038 ¥3,757,219 ¥— ¥3,757,219

647,578

190,866

123,917728

963,091 (963,091)—

2,028,672

619,840

1,906,030

165,766

4,720,310 (963,091)

3,757,219

161,044

17,174

191,3155,101374,635(453)

374,182

Millions of yen

2017
Japan

Europe

Asia

Other
areas

Total

Eliminations Consolidated

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

¥1,293,486 ¥344,591 ¥1,389,743¥141,721 ¥3,169,542 ¥

565,322

213,651

117,165546

1,858,809

558,242

1,506,909

142,267

137,240

13,101

121,396

4,060

896,685 (896,685)— 46 ——

4,066,228 (896,685) 3,169,542*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, Pakistan, Indonesia, and Thailand
		 (3) Other areas United States, Australia, Mexico and Colombia
3. Classification is counted based on the location of the Company and its consolidated subsidiaries.

SUZUKI MOTOR CORPORATION— ¥3,169,542

275,799(9,113)

266,685

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 2018, 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 2018, 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
28 June 2018

— 47 —SUZUKI MOTOR CORPORATION

Company Outline
1. Company NameSUZUKI MOTOR CORPORATION

2. Date of Incorporation

March 1920
June
1954
October 1990

3. Head Office

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

4. Main Products

Automobiles, Motorcycles, Outboard Motors, Motorised Wheelchairs,
Electro Senior Vehicles, etc.

5. Fiscal Year-End

31 March

6. Public Accounting Firm

Seimei Audit Corporation

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

7. Capital and Shareholders
Capital(as of 31 March 2018)¥138,064 million

Total number of authorised shares

1,500 million

Total number of shares issued

491,018,100

Number of shareholders

28,374

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)37,146

8.4

Japan Trustee Services Bank, Ltd. (Trust Account)

23,5075.3

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.

13,600

3.1

Resona Bank, Ltd.

13,000

2.9

JP Morgan Chase Bank 380055

12,8592.9

Sompo Japan Nipponkoa Insurance Inc.

7,761

1.8

Nippon Steel & Sumitomo Metal Corporation

7,759

1.8

Japan Trustee Services Bank, Ltd. (Trust Account5)

7,573

1.7

(Thousands of Shares)(%)(Note) *1. Number of shares less than 1,000 is truncated.
*2. Percentage of Shareholding is calculated excluding treasury stock (49,216 thousand shares).

— 48 —SUZUKI MOTOR CORPORATION