ANNUAL REPORT 2020

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

It has been a hundred years of feeling nothing less thanthe deepest gratitude.

Suzuki’s history goes back to 1909, when Michio Suzuki founded the Suzuki Loom Works, which is the precursorof the Suzuki Loom Manufacturing Company founded on March 15, 1920 in the present-day Hamamatsu,
Shizuoka. Since then, Suzuki has expanded its business from looms to motorcycles, automobiles, outboard motors,
ATV’s and others, always adapting to the trend of the times.
After changing the name to Suzuki Motor Co., Ltd. in 1954, it launched the Suzulight, the first mass-produced
minivehicle in Japan*1, and many other products which are developed focusing on customers. The company namewas changed to “Suzuki Motor Corporation” in 1990 in view of its business expansion and globalization.
The journey of 100 years was never easy. To overcome a number of crises since the foundation, all members of
Suzuki united as one and continued to make the company thrive.

If the customer needs something,*1 Based on Suzuki research

do whatever we can to respond.
We can do anything if we work hard.

Michio Suzuki,
Founder

Greetings
We celebrated our 100th anniversary in 2020.
On 15th of March, 1920, Michio Suzuki founded the Suzuki Loom Manufacturing Co.
in Hamamatsu.
Since then, we have expanded our business from looms to motorcycles, automobiles,
outboard motors, ATV’s and others, always adapting to the trend of the times as well

March 15, 2020
Thanks to everyone’s support,
Suzuki Motor Corporation celebrated its 100th anniversary.
It was on March 15, 1920. Suzuki Loom Manufacturing Company was founded by Michio Suzuki.
We have expanded our business from looms to motorcycles, automobiles, outboard motors, ATV’s and others,
always adapting to the trend of the times as well as domestic and global markets, and evolved into a company
supporting the lives of a variety of people worldwide.
Hundred years of Suzuki.
It was a hundred years of being propped up by the patronage and support of customers.
We will never forget our feeling of gratitude,
and always cherish the philosophy inherited from the founder,
Michio Suzuki, “to deliver products of superior value by focusing on the customer,” on which our craftsmanshipis based.
We will continue to take on the challenges of manufacturing, in order to provide exciting products that deliver
greater “ease of use,” “fun” and “amazement” to people throughout the world.

With gratitude for our customers.
Suzuki’s challenges will continue.

as domestic and global markets.
Your kind support at all times is truly the greatest factor that has enabled us to always
be close to our customers’ daily lives and achieve the commemorative 100th
anniversary.
All members of Suzuki Motor Corporation take this as an important milestone toreaffirm the founder’s philosophy of “focusing on customers” and strive to deliverproducts to customers across the globe.
We sincerely appreciated your continuous support.

Suzuki Motor Corporation
Representative Director
and Chairman
Osamu Suzuki
Representative Director
and President
Toshihiro Suzuki

ANNUAL REPORT 202001

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Overview

From now on, the Indian market, in particular, may grow to a large scale with a population of 1.3 billion.
The Group aims to maintain its current share of 50% even in 2030 and continues to strive for future
growth.
Also, we believe that committing to the Indian market will lead to our growth in other markets, throughdeploying the developed products worldwide.
Compared with now, it is totally uncharted territory. All employees, including the management team, will be
required to change their mindset and distribute effectively the management resources.
In that sense, the effort we make based on this long-term view are challenges that decide the Group’s
future, and they should be made promptly.

Representative Director and President
Toshihiro Suzuki

We would like to express our deepest condolences to those who have passed away due to the novel
coronavirus (COVID-19) infection, and sympathies to those who are being treated. We would also like toexpress our sincere gratitude to all medical staff and others who are working hard every day to secure
lifelines.
Additionally, we sincerely apologize for the enormous inconvenience and concerns our improper conducts
regarding the final vehicle inspection in the plants has caused to our shareholders.
The entire Company is uniting together around the efforts of the management team in order to raisecompanywide awareness and improve our organizational culture to ensure thorough compliance with laws
and regulations in all operations of the Company. Among these efforts, with regard to the final inspection
operations, we made progress on a wide scope of initiatives, including collection of feedback fromworksites, reduction of the burden of inspectors by increasing the number of inspectors, and improvementof inspection facilities, and we have promoted the relevant measures so that more reliable and accurate
inspections can be performed. Moving forward, we will continue to work on further improvements.
Furthermore, with safety and security as our top priority, we will comply with laws and regulations in orderto provide high-quality products and services that satisfy our customers, and in all our operations including
manufacturing, we will make efforts to promote the “Smaller, Fewer, Lighter, Shorter, and Neater” slogan
and the “improvement of quality,” and work to achieve efficient and healthy management.

With regard to environmental issues, the Group needs to accelerate efforts not only on extending thecurrent technologies but also on creating new technologies. In addition to small car production and highefficiency powertrain development that the Company specializes in, we will proactively work on expanding
and strengthening hybrid cars, while developing new EVs.
Further, we will work on safety technology and information communications technology such as connected
technology.
The Group supports the Sustainable Development Goals (SDGs) and will actively fulfill its responsibilities ingoals that we can contribute to their achievements through our ESG (Environment, Social, and Governance)
activities.
As for environment, we view this as an important factor that influences the continuous growth of theGroup, and will proactively address environmental issues such as climate change. As one part of thoseefforts, in April 2020, we announced our support for the recommendations of the Task Force on Climaterelated Financial Disclosures (TCFD). We will work to enhance disclosure regarding climate change.
Furthermore, in November 2020, we announced the Suzuki Environmental Vision 2050, a long-term vision
toward tackling environmental issues, which presents the ideal appearance of the Company in 2050.
As for society, we will proactively address contributions to the community, investment in people,
development of human resources, and work safety, while giving the highest priority to safety and quality, sothat we can live up to the expectations of the stakeholders.
As for governance, we will review our compliance system and risk management system from the ground up
to cover all operations of the Company, and strengthen our oversight of internal control. Also, in order tostrengthen the supervision function, the number of Outside Directors was increased from two to three (twomale, one female). We have judged that they can provide advice and supervision to the management of theCompany from various perspectives based on their knowledge in such fields as corporate management andinternational experience.
We strive to become a group worthy of the trust of stakeholders through activities on environmental, social,and governance issues and manufacturing products.
We will keep striving to make and provide valuable products and services, and promote efforts forenhancing corporate value based on long-term prospects, while continuing to take on new challenges forthe next 100 years.

Suzuki Motor Corporation celebrated its 100th anniversary in March 2020. Over the last 100 years, Suzuki
has taken on many challenges in the areas of looms, motorcycles, automobiles, outboard motors and more.
The Suzuki of today was created through these challenges. We are grateful to our shareholders, customers,
business partners, employees, and all of our stakeholders, and it has truly been “a hundred years of feelingnothing less than the deepest gratitude.”
In the operating results for the current fiscal year, both sales and profit decreased compared with theprevious fiscal year due to the late recovery in the Indian automobile market and the effects of foreignexchange rates in addition to the impact of COVID-19 at the end of the fiscal year. The spread of COVID-19
is a situation we have never experienced before, but the Group has overcome many crises in the past. We
will swiftly implement our response in regard to production, sales and management.
The automobile industry is undergoing a period of great transformation. In this period of transformation, it
is necessary to have a concrete vision of what the Company should be 10 or 15 years in the future, as along-term view, and go back to the present from there to consider what the Company should do from now,
instead of merely continuing as we are.

02 ANNUAL REPORT 2020

ANNUAL REPORT 202003

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

About Suzuki

Corporate Philosophy

Message from the President

Basic policy for company management
The Group has been placing “Develop products of superior value by focusing on the customer” as the first paragraph of the mission
statement. We will constantly make the best effort to create truly valuable products that satisfy our customers.
Under the slogan “Small cars for a big future”, we will work toward manufacture of “small cars” and “environmentally-friendly products”

Suzuki Group mission statement (established in 1962)
1. Develop products of superior value by focusing on
the customer
2. Establish a refreshing and innovative company
through teamwork
3. Strive for individual excellence through continuous
improvement

About Suzuki

02
04
05
06
08
10
12

Overview

Automobile Business
Motorcycle Business
Marine Business, etc.
Special Topic

14
18
21
22

GovernanceDirectors, Auditors, and Officers
Corporate Governance
Risks in Operations

24
26
38

Environmental and Social Initiatives

Environment
Product Quality/Product Safety
Human Resources
Business Partners
CSR Policy

42
46
48
52
54

Data Section

11-Year Financial/Non-Financial Data
Financial Review
Consolidated Financial Statement
Company Information/Stock Information

56
58
60
64

“Smaller, fewer, lighter, shorter, and neater” has been used for long years and it has become established as words to simply express
Suzuki’s philosophy and culture.

Global Network

Major Product Lineup

In order for the Suzuki Group to continuously grow for the next 100 years, the Company is promoting various
initiatives. This report is published in view of our stakeholders including shareholders, investors, and employees, tounderstand those initiatives. Financial and non-financial information are also available at our website.

Period Covered

The period covered by this report is FY2019 (from 1 April 2019 through 31 March 2020). However, this report also
contains descriptions on some activities taking place before or after that time period.

Information Covered

This report covers information about not only Suzuki Motor Corporation, but also domestic and overseas Suzuki Group
companies. (Unless “related companies”, “dealers”, or “overseas” is indicated in each description, the information isrelated to Suzuki Motor Corporation.)

Referred Guidelines“Environmental Reporting Guidelines 2018” by the Ministry of the Environment,
Global Reporting Initiative (GRI) Standards, etc.

Group are making daily efforts in creating value-packed products.
Smaller, Fewer, Lighter, Shorter, and Neater

At a Glance

Editorial Policy

Each statement sets goals to strive for accomplishing corporation’s social missions (product-making), for the corporate organization thatthe one belongs to (company-making), and for the one’s own self (person-making).
With the motto “products of superior value”, which is mentioned in the first paragraph of the statement, all employees of the Suzuki

SUZUKI HISTORY

Message from the President
Corporate Philosophy
Table of Contents
SUZUKI HISTORY
At a Glance
Global Network
Major Product Lineup

which are wanted by our customers. We will also work on lean, efficient and sound management by emphasizing the “Smaller, Fewer,
Lighter, Shorter, and Neater” concept in all areas while complying with laws and prioritizing safety and quality.
Mission statement
In 1962, Suzuki established the “Mission Statement” which indicates the corporate policy of Suzuki.

Corporate Philosophy

Information
Disclosure System

Financial Information

Non-financial Information

Integrated Report 2020

“Smaller” leads to enhanced efficiency by making things compact, “fewer” optimally distributes resources by omitting wastes, “lighter” slims
down for enhanced efficiency, and “shorter” speeds up decision-making, action and reporting, communication, and consultation processes.
In addition, the meaning behind “neater” is that all activities are for the best interest of our customers, that the customers can be satisfied• Business Report (PDF)• Financial Results (PDF)• Annual Stock Report (PDF)*

for the first time once we meet all criteria of performance, quality, cost, dependability, safety and reliability, and compliance.
In order to provide products of superior value by focusing on the customer, the Company will continue conducting the “smaller, fewer,• Corporate Profile (PDF)• CSR & Environmental Report (PDF)• Governance Report (PDF)

lighter, shorter, and neater” in manufacturing and all other operations.
*In Japanese language only

Caution with respect
to Forward-Looking
Statements

04 ANNUAL REPORT 2020

The forward-looking statements mentioned in this report are based on currently available information and assumptions,contain risks and uncertainty and do not constitute guarantees of future achievement.
Please note that the future results may greatly vary by the changes of various factors.
Those factors, which may influence the future results, include economic conditions and the trend of demand in major
markets and the fluctuations of foreign exchange rates (mainly U.S. dollar/Yen rate, Euro/Yen rate, Indian Rupee/Yen rate).

ANNUAL REPORT 202005

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

About Suzuki

SUZUKI HISTORYNet Sales

Operating Income

Net Sales(billion yen)

Progressed with customers worldwide

Message from the President

Corporate Philosophy

SUZUKI HISTORY

At a Glance

Global Network

Major Product Lineup*Below graph is based on non-consolidated figures until 1976, and consolidated figures from 1977.
Operating Income(billion yen)

Suzuki’s historic models

400

4,000
1985
Launched GSX-R750

3,500

3,000

1972
Launched GT380B

1952
Launched Power Free1956
Launched Colleda 250TT

1999
Launched Hayabusa

2019
Launched KATANA1981
Launched GSX1100S KATANA

350
2002
Launched Skywave(Burgman) 650

1983
Launched RG250G

1965
Launched T20

300
2006
Launched SX41970
Launched Jimny

1993
Launched WagonR

2,500

250

1983
Launched Cultus (Swift)
1955
Launched Suzulight2014
Launched Hustler

2004
Launched Swift1979
Launched Alto1967
Launched Suzuki Fronte

2,000

1988
Launched Escudo (Vitara)

200
2006
Launched Outboard Motor DF300

1950
A46 Single-sided automatic
four-shuttle loom

1965
Launched Outboard Motor D55

1,500

1974
Launched Motor Chair Z600

1,000

1982
Launched ATV LT125

1974
Launched Suzuki House

Non-Consolidated accounting basis

1999
Launched Senior Car ET-4A

150

100

1985
Launched Senior Car ET102017
Launched Outboard Motor DF350A

Consolidated accounting basis

50

500

(FY)

1960

1980

1970

1970 Oct. Kosai Plant (automobile) completed
1909 Oct.
Suzuki Looms Work founded1920 Mar.
Suzuki Loom Manufacturing
Co. incorporated
1952 June
Started Motorcycle business
1954 June
Name changed to Suzuki
Motor Co., Ltd.
1955 Oct.
Started Automobile business

1962 Mar. Mission Statement established1974 Apr. Started motorized wheelchair businessAug. Started housing business
1965 Apr. Started Marine business1967 Mar. First overseas motorcycle
production (Thailand)Aug. Iwata Plant (automobile)completed

06 ANNUAL REPORT 20201975 May First overseas automobile
production (Pakistan)1980 Mar.
Established Machine
Industry Fosteringand Promoting
Foundation (present
Suzuki Foundation)
1981 Aug.
Business tie-up with
General Motors
Company
1983 Dec.
Start of automobile
production at Maruti
Udyog Ltd.
(India, present Maruti
Suzuki India Limited)

1990

2010

2000

1990 Oct. Name changed to Suzuki
Motor Corporation

2000 Oct. Established Suzuki Education andCulture Foundation

1999 Oct. Production of outboard motors
began at Thai Suzuki Motor Co.,
Ltd. in Thailand

2012 Mar. Production of automobiles began at Suzuki Motor(Thailand) Co., Ltd. in Thailand
2013 Feb. Established Suzuki (Myanmar) Motor Co., Ltd., asubsidiary for production of automobiles in Myanmar

1992 Oct. Production of automobiles began at
Magyar Suzuki Corporation Ltd. in
Hungary

1996 Nov. Production of automobiles andmotorcycles began at Vietnam
Suzuki Corp. in Vietnam

20192015 June Announced new mid-term management plan “SUZUKI NEXT 100”
Sept. Acquired all shares in Suzuki held by Volkswagen AG

2008 July Sagara Plant (automobile) completed
Nov. Resolved equity tie-up with
General Motors Company
2009 Dec. Reached agreement with
Volkswagen AG for acomprehensive partnership2017 Feb. Start of automobile production at Suzuki Motor
Gujarat Private Limited (India)
Feb. Concluded memorandum toward business
partnership with Toyota Motor Corporation
Dec. Established Suzuki Environmental Plan 20202018 Sept. Hamamatsu Plant (motorcycle) completed
2019 Aug. Entered into Capital Alliance Agreement with
Toyota Motor Corporation
2020 Mar. Suzuki celebrates the 100th anniversary
Nov. Suzuki announces the Suzuki Environmental Vision 2050

ANNUAL REPORT 202007

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

About Suzuki

At a Glance

Message from the President

Corporate Philosophy

SUZUKI HISTORY

At a Glance

Global Network

Major Product Lineup

Financial Highlights
Net sales by geographic region (Millions of yen)
Japan

Asia

EuropeNorth America

3,757,219
3,180,659
266,329
67,002404,722294,21062,454
510,643

3,169,542
257,585
56,115425,332

1,773,145
1,394,720

Net sales by segment (Millions of yen)
Others3,871,496
261,13970,722524,810

Automobile

3,488,433
252,928
67,062465,260

1,762,377

3,180,659
68,253233,889

Motorcycle

3,169,542
67,633
206,289

1,523,658

1,392,961

R&D expenses (Millions of yen)

Capital expenditure
Depreciation
268,945

R&D expenses

Marine, etc.

3,871,496
83,893
255,071

3,757,219
75,053
246,3623,532,531

3,435,802
2,878,515

Capital expediture/Depreciation (Millions of yen)

2,895,619

236,450

3,488,433
88,437
242,561

213,376

198,782
171,535
168,315 163,397

2015

3,157,434

2016

17.9%

150,877 148,926

2017

Total assets

1,047,883

1,116,764

1,037,546

2018

164,158
131,031 131,539 139,390

2019 (FY)

2016

2017

1,179,523

2018

158,0862019 (FY)

2015

2016

2017

2018

2019 (FY)Consolidated net sales decreased by ¥383.1 billion (9.9%) to ¥3,488.4 billion year-on-year owing to decrease in both Japan and overseas. With respect to automobiles, sales
largely decreased in India. With respect to motorcycles, although sales increased in Japan and India, they decreased in markets including Europe and ASEAN. With respect tomarine, etc., although sales of large outboard motors in North America had been leading the business, they decreased since January.

9.6%

4.1%

4.2%

2015

2016

2017

2018

2019 (FY)Net income attributable to ownersof the parent

Operating income
Margin374,182

3,340,828

38.8%

40.9%

1,595,227

1,715,914

1,387,041

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

324,36585

215,069

10.0%

195,308
8.4%

215,730
488.86

8.4%

159,956
6.2%

6.1%

116,660

13.6%
178,759395.26362.5444
134,222286.36234.98

12.1%

32

15.1%
44

2015

2016

2017

2018

2019 (FY)Operating income decreased by ¥109.3 billion (33.7)
to ¥215.1 billion year-on-year owing to appreciationof yen and increase in depreciation expenses, inaddition to decreased net sales.

08 ANNUAL REPORT 2020

2015

2016

2017

2018

2019 (FY)Net income decreased by ¥44.6 billion (24.9%) to¥134.2 billion year-on-year. The decreased amountof net income was smaller since the extraordinary
loss largely decreased year-on-year.

74
18.7%
37

（Including, commemorative
dividend 11 yen）

29.7%
48

2016

Cash flows from investing activities

3,339,783

Free cash flows

44.5%

294,095

366,315

15

17

2015

2016

2017

383,437
132,589

77,750 89,505 103,586

51,6601,793,657

445,171

171,533

80,708-125,456

2017

37

2018

Amount of water used at plants in Japanand major overseas plants*2 (10,000m3)

Whole value chain: Total of Scope 1, 2, and 3
Scope 3: Other indirect emissions
Scope 2: Indirect emissions from energies
Scope 1: Direct emissions from corporate activities

Overseas plants
Domestic manufacturing subsidiaries
Suzuki

8,817

37

7,242

7,862

7,233

7,632 7,130 7,742

772
342

8,698

2019 (FY)Dividends per share was ¥85.00, including acommemorative dividend of ¥11.00 per share forthe 100th anniversary of foundation.

818
395

872

863

-288,564

2015-250,848-296,989-256,110-341,585

2016

2017

54

56

55

51

56

65

62

53

2015

2016

2017

2018

2019

57

63

(FY)

104

Total waste discharge amount at plants inJapan and major overseas plants (1,000t)
ThailandIndonesia
India
Domestic manufacturing subsidiaries
Suzuki

863

371
438

454

457

7,117
116

2018

2019 (FY)

CO2 emission amount from the wholevalue chain*1 (10,000 t-CO2)

27
30

2019 (FY)20182019 (FY)Non-financial Highlights

7,737

17

2018

-113,922

2015

Interim dividends

15.2%

2017

-520,361

Net income per share (Yen)

17.3%

2016

Cash flows from financing activities

3,401,970

Year-end dividends

Net income (Millions of yen)

266,6852015

Cash flows from operating activities

Dividends (Yen)

74

9.3%

Cash flows (Millions of yen)

-242,435

Operating income (Millions of yen)

13.3%

3.7%

Net assets

35.9%

1,187,703

148,080

4.2%

2,702,008
35.4%

15.4%

4.1%

Shareholders’ equity ratio

3,115,985
2015

ROE

Ratio of R&D expenses to sales

Total assets/Net assets/Shareholders’ equity ratio (Millions of yen)

1,252,447

ROE

102

83

86

314

319

332

326

320

2015

2016

2017

2018

2019

(FY)

297
7
13

315
8
10

384

No. of employees (Person)
Non-Consolidated
Consolidated

61,601 62,992

65,17967,721 68,499

350

9
12

8
12

213

228

24

21

20

5
12

209

166

186

18

18

93

93

114

115

104

2015

2016

2017

2018

2019

(FY)

14,932 15,138 15,269 15,431 15,646

2015

2016

2017

2018

2019

(FY)

*1 Calculation range: Suzuki Motor Corporation, 69 domesitc manufacturing and non-manufacturing subsidiaries, and 31 overseas manufacturing and non-manufacturing subsidiaries.
Part of past data were amended (Scope 1 and 2 of FY2017 and Scope 2 and 3 of FY2018).
*2 Area subject to totalization: 8 plants of Suzuki Motor Corporation (Takatsuka and Toyokawa plants are until July 2018), 4 domestic manufacturing subsidiaries, and 17 overseas manufacturing subsidiaries

ANNUAL REPORT 202009

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

About Suzuki

Global Network

Message from the President

Corporate Philosophy

SUZUKI HISTORY

At a Glance

Global Network

Major Product Lineup

As of the end of March 2020

User-friendly and high-quality SUZUKI products are favored by customers of each contry and area worldwide.

A Automobile M Motorcycle O Outboard Motor

Global Network

Sales

Domestic Plants

Major Overseas Distributors

A M O

1 SUZUKI MOTOR OF AMERICA, INC. (USA)A M O

2 SUZUKI CANADA INC. (Canada)

A M O

3 SUZUKI MOTOR DE MEXICO, S.A. DE C.V. (Mexico)

A M O

4 SUZUKI AUSTRALIA PTY. LTD. (Australia)

A M O

5 SUZUKI NEW ZEALAND LTD. (New Zealand)

A M O

6 SUZUKI MOTOR (CHINA) INVESTMENT CO., LTD. (China)

A M O

7 SUZUKI FRANCE S.A.S. (France)

A M O

8 SUZUKI ITALIA S.P.A. (Italy)

A M O

9 SUZUKI DEUTSCHLAND GmbH (Germany)

9

10
7

13
17

2

11

12

8

19
31
32

18
34

33

21
6
20
24 25 2726
28 29

Production

15

1

22
23
3

A M O 10 SUZUKI GB PLC (UK)16

A M O 11 SUZUKI AUSTRIA AUTOMOBIL HANDELS GmbH (Austria)

A M O

1 Kosai Plant

A M O

2 Iwata Plant

A M O

3 Sagara Plant

Foundry

4 Osuka Plant

A M O

5 Hamamatsu Plant

30

A M O 12 SUZUKI MOTOR IBERICA S.A.U. (Spain)

Number of directly managed
domestic distributors

A M O 13 SUZUKI MOTOR POLAND SP. Z.O.O. (Poland)

55 companies

A M O 14 SUZUKI AUTO SOUTH AFRICA (PTY.) LTD. (South Africa)

14
4

5
5
2

1

3

Major Overseas Manufacturing Companies

Sales

Production

A M O

A M O

15 SUZUKI MANUFACTURING OF AMERICA CORPORATION (USA)

A M O

A M O

16 SUZUKI MOTOR DE COLOMBIA S.A. (Colombia)

A M O

A M O

17 MAGYAR SUZUKI CORPORATION LTD. (Hungary)

A M O

A M O

18 SUZUKI EGYPT S.A.E. (Egypt)

A M O

A M O

19 JINAN QINGQI SUZUKI MOTORCYCLE CO., LTD. (China)

A M O

A M O

20 JIANGMEN DACHANGJIANG GROUP CO., LTD. (China)

A M O

A M O

21 CHANGZHOU HAOJUE SUZUKI MOTORCYCLE CO., LTD. (China)

A M O

A M O

22 TAI LING MOTOR CO., LTD. (Taiwan)

A M O

A M O

23 SUZUKI PHILIPPINES INC. (Philippines)

A M O

A M O

24 SUZUKI (MYANMAR) MOTOR CO., LTD. (Myanmar)

A M O

A M O

25 SUZUKI THILAWA MOTOR CO., LTD. (Myanmar)

A M O

A M O

26 SUZUKI MOTOR (THAILAND) CO., LTD. (Thailand)

A M O

A M O

27 THAI SUZUKI MOTOR CO., LTD. (Thailand)

A M O

A M O

28 CAMBODIA SUZUKI MOTOR CO., LTD. (Cambodia)

A M O

A M O

29 VIETNAM SUZUKI CORP. (Vietnam)

A M O

A M O

30 PT. SUZUKI INDOMOBIL MOTOR (Indonesia)

A M O

A M O

31 MARUTI SUZUKI INDIA LIMITED (India)

A M O

A M O

32 SUZUKI MOTORCYCLE INDIA PRIVATE LIMITED (India)

A M O

A M O

33 SUZUKI MOTOR GUJARAT PRIVATE LIMITED (India)

A M O

A M O

34 PAK SUZUKI MOTOR CO., LTD. (Pakistan)

1 Kosai Plant

Head Office

17 MAGYAR SUZUKI CORPORATION LTD.

23 SUZUKI PHILIPPINES INC.

31 MARUTI SUZUKI INDIA LIMITED (Gurgaon Plant)

31 MARUTI SUZUKI INDIA LIMITED (Manesar Plant)

33 SUZUKI MOTOR GUJARAT PRIVATE LIMITED (Gujarat Plant)

Number of bases

26 SUZUKI MOTOR (THAILAND) CO., LTD.

10 ANNUAL REPORT 2020

430 PT. SUZUKI INDOMOBIL MOTOR (Cikarang Plant)

Asia

EuropeNorth
America

Latin
America

AfricaMiddleEast

Oceania

Number of trading countries/
Regions

22

45

2

48

53

18

22

Number of manufacturing
companies

19

1

1

3

1

1

0

34 PAK SUZUKI MOTOR CO., LTD.

ANNUAL REPORT 202011

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

About Suzuki

Major Product Lineup
J JapanI India A ASEAN

Message from the President

E Europe N North America O Other

Corporate Philosophy

SUZUKI HISTORY

At a Glance

Global Network

Major Product Lineup*Global sales unit, sales market, and production site are based on FY2019 results, photos are as of May 2020.

Automobiles

SpaciaGlobal Sales Unit

Hustler
160,000

Sales Market
J
Production Site J

Solio

Global Sales Unit

63,000Global Sales Unit

Sales Market
J O
Production Site J

XBEE
45,000Global Sales Unit

Sales Market
J O
Production Site J

Celerio
22,000

Sales Market
J
Production Site J

Global Sales Unit

106,000

Sales Market
I A E O
Production Site I A O

Vitara Brezza
Global Sales Unit 111,000

Ciaz

Sales Market
I O
Production Site I

Sales Market
I A O
Production Site I A O

Access 125

V-Strom 250/650/1000
V-STROM 1050
Global Sales Unit 35,000

Global Sales Unit

55,000Motorcycles

Alto

WagonR

Carry

Global Sales Unit

377,000

Global Sales Unit

255,000

Global Sales Unit

163,000

Sales Market
J
Production Site J

I A O
I O

Sales Market
J
Production Site J

I A O
I A O

Sales Market
J
Production Site J

I A O
I A O

*Global sales unit includes overseas Alto, etc., besides the Japanesemini Alto and Lapin (Photo: Japanese mini Alto)*Global sales unit includes overseas WagonR, besides theJapanese mini WagonR (Photo: Japanese mini WagonR)

KATANA
Global Sales Unit

*Global sales unit includes overseas Carry, etc., besides theJapanese mini Carry (Photo: Japanese mini Carry)

3,000

Sales Market
J A E N O
Production Site J

Global Sales Unit

569,000

Sales Market
I A O
Production Site I

Sales Market
J A E N O
Production Site J O*Global sales unit includes V-Strom 650XT/1000XT as well as
V-STROM 1050XT (Photo: V-STROM 1050XT)

Swift

Jimny

VitaraSX4 S-CROSS

Global Sales Unit

336,000

Global Sales Unit

71,000Global Sales Unit

131,000

Sales Market
J
Production Site J

I A E OI A O

Sales Market
J
Production Site J

I A E OI O

Sales Market
J A E O
Production Site E O

Global Sales Unit

62,000

Sales Market
J I A E O
Production Site I E O*Photo: Escudo (Japanese Vitara)

GIXXER/GIXXER 250
Global Sales Unit 109,000

GSX-S125/150/750/1000
Global Sales Unit 23,000

GSX-R125/150/600/750/1000
Global Sales Unit 25,000

Sales Market
J I A O
Production Site I A O

Sales Market
J I A E N O
Production Site J A O

Sales Market
J I A E N O
Production Site J A O*Global sales unit includes GIXXER SF/GIXXER SF250(Photo: GIXXER)*Global sales unit includes GSX-S1000F (Photo: GSX-S750)

Outboard Motors

Baleno

Ignis

Dzire

Global Sales Unit

220,000

Global Sales Unit

78,000Global Sales Unit

193,000

Sales Market
J
Production Site I

I A E O

Sales Market
J
Production Site J

I A E OI

Sales Market
I A O
Production Site I

Ertiga/XL6/XL7
Global Sales Unit 174,000
Sales Market
I A O
Production Site I A*Global sales unit includes GSX-R1000R(Photo: GSX-R1000R)

Motorized Wheelchairs

DF350A

DF140BG

Sales Market
J A E N O
Production Site J A O

Sales Market
J
Production Site J

ET4D
I A E N O

Sales Market
J
Production Site J*Photo: Ertiga

12 ANNUAL REPORT 2020

ANNUAL REPORT 202013

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Overview

Business Report (Automobile Business)

Automobile BusinessBusine ss O v er v i ew ( A u t o mo b i l e B u s i n e s s )Net sales
contribution ratio

90.5%

Minivehicles, Sub-compact vehicles, Standard-sized vehicles

Hustler

Carry

Launched January 2019 in Japan

Launched April 2019 in Indonesia

We completely redesigned the Hustler minicar, a fusion of a miniwagon and an SUV. The

Suzuki revealed a global truck, the all-new Carry in Indonesia. With the low deck height

all-new Hustler features further evolutions in the packaging and ease-of-handling byadopting a unique design that is instantly recognizable as a Hustler. We have also provided

which makes loading and unloading easier, heavy duty-suspension, comfortable andconvenient cabin, and the new 1.5L gasoline engine which delivers high power and highan enhanced selection of the preventive safety technologies, and adopted the newly

fuel efficiency, the all-new Carry delivers what all truck customers today expect; cargodeveloped R06D engine (available for naturally-aspirated engine variant). It has evolved
the vehicle in all directions as a “more playful minicar”.

capacity, toughness, comfort and performance.

S-PRESSO

XL6/XL7

Launched September 2019 in India

Launched August 2019 in India
Launched February 2020 in Indonesia[Japan]innovative center digital speedometer. It provides both comfort and convenience byensuring both cabin and luggage space. By installing a 1.0L gasoline engine onto a high-Special Topic[India]Overall Market

Overall Market

Total domestic automobile sales volume in FY2019 decreased for the first time infour fiscal years by 4% to 5,039,000 units year-on-year, partly owing to the impactof hike in the rate of consumption tax in the second half of the fiscal year.
Sales of sub-compact and standard-sized vehicles decreased for the third consecutive
fiscal year by 5% to 3,183,000 units year-on-year. Sales of minivehicles, which had
been leading the whole market for the past two fiscal years, decreased for the firsttime in three fiscal years by 3% to 1,856,000 units year-on-year.

New car sales (total market of passenger and commercial vehicles) in India
decreased in FY2019 by 894,000 units (20%) from the previous fiscal year of
4,385,000 units to 3,491,000 units. This is owing to increase in cost of products
due to the introduction of the new emission norm (BS6) and safety equipment,
as well as increase in cost of tax and insurance. In addition, the whole market
was impacted and slowed down by the lockdown which was conducted
throughout India from March 2020 due to the spread of COVID-19.

Suzuki Sales

Suzuki Sales

Suzuki’s domestic automobile sales decreased for the first time in four fiscal
years by 7% to 672,000 units year-on-year.
Suzuki’s sales of minivehicles decreased for the first time in three fiscal years by
7% to 554,000 units year-on-year, and sales of sub-compact and standard-sized
vehicles decreased for the first time in five fiscal years by 10% to 118,000 units
year-on-year.

Suzuki’s total sales decreased by 18% to 1,436,000 units year-on-year. Despite theslowdown in the market, the drop in sales were held at this level, owing to strong sales ofthe WagonR and the Ertiga, which achieved accumulated sales of 2.4 million units and
0.5 million units respectively, as well as launch of new models, the XL6 and the S-PRESSO.
Suzuki continues to make steady sales as the company achieved accumulated
Indian sales of 20 million units in June 2020 since starting business in India in
1983. Plus, the Alto achieved accumulated sales of 3.9 million units, and the
Baleno achieved accumulated sales of 0.6 million units in 44 months, which isthe fastest in any passenger car sales in India.

Suzuki Sales Units
The brand new mini SUV S-PRESSO is designed with proportions inspired from Suzuki’s
iconic SUVs, which gives a strong and tough impression. The interior comes with an

Marine Business, etc.

Market Overview by Region *Sales units are based on Suzuki research on outside data.

Business policy
The Group has positioned Japan at the center of global automobile development, the base of production.
Our strategy for products in this sector is to introduce attractive products while accurately understanding
the market and customer trends.
Main products

Motorcycle BusinessWe launched the three-row six-seater premium MPV XL6 in August 2019 in India.
Subsequently, the XL7 seven-seater crossover, a fusion of SUV design and MPV convenience
was launched in February 2020 in Indonesia. Both powertrain offer fuel efficiency andSuzuki Sales Units[Full Year Comparison: from April to March][Full Year Comparison: from April to March]–53 Thousand units (–7.3%)–318 Thousand units (–18.1%)

725

1,754
24

performance by installing a powerful 1.5L gasoline engine onto a light and rigid platform.

rigidity platform, S-PRESSO realizes excellent fuel efficiency and driving performance.

Production Units/Sales Units

672*Sales units are based on Suzuki research on outside data.

179

131
Automobile Production

Automobile Sales(Thousand units)(Thousand units)

1,850

1,580

118

1,754
1,436

264

1,436
22
118

Vans

235

UV

25

Midsize

788

Compact

248

Mini

LCV

46

1,011 944

725 672352 282

180 160

384 306

278 262

186 175

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

Japan

India

Asia
(excl. India)

Europe

Japan

India

Asia
(excl. India)

EuropeOthers872

Total overseas automobile production for FY2019 decreased by 15.1% to 2,022,000 units year-on-year. Worldwide production, including Japan, also
decreased by 12.6% to 2,967,000 units year-on-year. Sales of automobiles in overseas market decreased by 16.2% to 2,179,000 units year-on-year, while
total global sales, including Japan, also decreased by 14.3% to 2,852,000 units year-on-year.

Operating Results for FY2019
The net sales decreased by ¥375.1 billion (10.6%) to ¥3,157.4 billion year-on-year owing to the impact
of COVID-19 in the end of the fiscal year, in addition to the decrease in sales in India and Pakistan andthe appreciation of the yen. The operating income decreased by ¥106.7 billion (35.1%) to ¥197.1 billion
year-on-year mainly owing to the appreciation of the yen and increase in depreciation, in addition to
decrease in sales.

594

554

Minivehicle

303.8
Operating results ofautomobile business
Operating income
Margin369

197.1(Billion yen)

8.6%

6.2%

(Thousand units)

FY2018FY201814 ANNUAL REPORT 2020

Sub-compact andstandard-sized
vehicleFY2019(Thousand units)

FY2018FY2019*LCV=Light Commercial Vehicles
UV =Utilities Vehicles

FY2019ANNUAL REPORT 202015

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Overview

Business Report (Automobile Business)

Automobile Business

Motorcycle Business

Marine Business, etc.

Special Topic

Market Overview by Region *Sales units are based on Suzuki research on outside data.
[ASEAN][Europe][Others (Pakistan, Middle East, Africa, Latin America, and Oceania)]

Overall Market

Overall Market

Pakistan

Latin America

New car sales in ASEAN in FY2019 decreased by 7% to 3,439,000 units yearon-year. While Myanmar saw growth, the two major markets of Indonesia andThailand dropped by more than 10% owing to economic stagnation. Although
the Philippines showed strong sales during 2019, it consequently decreased
year-on-year in FY2019 owing to the Taal volcano eruption in January, and the
spread of COVID-19 in March.

New car sales in Europe in FY2019 decreased by 5% to 17,155,000 units yearon-year. Although sales outpaced the previous fiscal year during 2019, the fiscal
year-end sales were impacted by the confusion caused by the COVID-19.

Overall market in Pakistan in FY2019 largely decreased by 39% to 152,000 units
year-on-year owing to increase in sales prices of each brand to meet the local
currency depreciation and the increased taxes.
Although Suzuki’s sales decreased to 89,901 units (down 34% year-on-year), highmarket share of 59% was maintained, partly owing to Suzuki’s first locallyproduced minivehicle Alto, which started its production in April 2019, achieving
sales of 30,000 units in eight months since its launch in June.

Overall market in Latin America in FY2019 decreased by 7% to 5,637,000 units.
Although sales increased in Brazil, the largest market in Latin America, sales
decreased in many countries including Mexico and Chile, which are the major
markets for Suzuki in Latin America. Suzuki’s sales in Latin America decreased by
11% to 109,005 units year-on-year, but marked record-high sales in Mexico at
30,943 units (up 10% year-on-year) with a market share of 2.4%, and maintained
the top market share in Bolivia and Barbados.

Suzuki Sales
Suzuki’s sales in ASEAN marginally increased by 0.1% from the previous fiscal
year of 177,940 units to 178,150 units.
Myanmar (13,899 units, up 19% year-on-year) and Vietnam (11,790 units, up
56% year-on-year) marked record-high sales. Also, the Philippines grew by 17%
to 22,973 units year-on-year, despite the shrunk in the overall market.

Suzuki Sales Units

Suzuki Sales
Suzuki’s sales in Europe decreased by 6% to 261,974 units year-on-year.
Although there were impacts of COVID-19 toward the end of the fiscal year,
Italy increased for the seventh consecutive fiscal year at 35,904 units (up 6%
year-on-year) owing to strong sales of hybrid variants of Swift and Ignis. France
also increased for the fifth consecutive fiscal year at 28,114 units (up 0% yearon-year), and Poland increased for the sixth consecutive fiscal year at 10,122
units (up 1% year-on-year). Hungary increased for the ninth consecutive fiscal
year at 23,453 units (up 16% year-on-year) owing to strong sales of Vitara and
SX4 S-CROSS, which are produced locally in Hungary. Suzuki also maintained
the top market share in Hungary.

Middle East

Oceania

Overall market in the Middle East (excluding Iran) in FY2019 increased by 12% to1,224,000 units year-on-year. Suzuki’s sales also increased by 25% to 11,972 units
year-on-year owing to sales increase in Saudi Arabia.

Overall market in Oceania in FY2019 decreased by 9% to 1,201,000 units owing
to decrease in both Australia and New Zealand. Suzuki’s market share increased,
despite decrease in sales by 4% to 23,690 units year-on-year.

AfricaOverall market in Africa in FY2019 decreased by 5% to 1,147,000 units year-onyear. Suzuki’s sales increased by 16% to 30,436 units year-on-year owing to sales
in South Africa, which marked record-high sales for the third consecutive fiscal year.

FY2019 Topics

Suzuki Sales Units[Full Year Comparison: from April to March][Full Year Comparison: from April to March]+0 Thousand units (–0.1%)–16 Thousand units (–5.8%)[Japan][ASEAN]- Unveiled full-model change of the Hustler in December 2019, and launched itin January 2020.

- Started exports of Carry in July 2019, and XL7 in February 2020 in Indonesia.
Suzuki’s exports in Indonesia grew by 87% to 43,747 units.
- Started construction to extend the plant in Myanmar from March 2020, which
is located in the Thilawa Special Economic Zone.

[Sales breakdown by model]

178

178

8

12

Vietnam1214Myanmar

20
28

23
25

278

Philippines

278
11
19

262

19
132

127

40
Others

Jimny

14
11

Celerio38

S-Cross

28

Indonesia

39
34
37

7

Spain

28

France

29

UK

36

Italy

35

38

16 ANNUAL REPORT 2020

*ASEAN: Total of 5 countries (Indonesia,
Thailand, the Philippines, Myanmar, andVietnam)

Ignis

62

58

Swift

82

85

VitaraGermany[India][Europe]- Launched the new 3-row MPV XL6 in August 2019.
- Launched the new mini SUV S-PRESSO in September 2019.

- Started production of 48V Mild Hybrid variants of SX4 S-CROSS and Vitara in
Hungary from December 2019.
- Unveiled minor-changed model of Ignis in March 2020, which is added withmore SUV tastes.
- JD Power Customer Service Index (CSI) conducted in UK revealed that our UK
subsidiary Suzuki GB was selected as the top brand in the Volume Brands
category in 2019.

L

PRE

O

(Thousand units)(Thousand units)

FY2018

BalenoHustler

7

105

19

Thailand

46

111

262

FY2018FY2019FY2018FY2019ANNUAL REPORT 202017

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Overview

Business Report (Motorcycle Business)

Automobile BusinessBusiness Overview (Motorcycle Business)
Net sales
contribution ratio

7.0%

Motorcycles, ATV[Japan][India]V-STROM 1050/XT

GIXXER SF250/GIXXER 250

Launched February 2020 in overseas, April 2020 in Japan

Launched May/August 2019 in India, April/June 2020 in JapanThe all-new V-STROM 1050 and V-STROM 1050XT are models engineered as sport adventure
tourers that offer comfort in the various riding situations expected from long-distance motorcycle

GIXXER SF250 and GIXXER 250 are on-road sportbikes equipped with Suzuki’s unique oil-touring, from downtown streets and highways all the way up to mountain roads. The newmodels feature a ride-by-wire electronic throttle control system and adjust intake and exhaust

called the SOCS (Suzuki Oil Cooling System) cools the engine by letting the engine oil flow
through the oil path surrounding the combustion chamber, resulting in enhanced

cam profile to realize the best mix for balancing both higher power and lower fuel consumption,
and are further enhanced with electronic control systems and other advanced equipment.

combustion efficiency as well as reduced weight and friction to realize high-rpm, highoutput, and excellent fuel efficiency.

Motorcycle production(ATV included)(Thousand units)

Overall Market

Overall Market

Sales of motorcycles in India in FY2019
decreased by 18% to 17,418,000 units
year-on-year. This is owing to increase incost of products that started from theincrease in insurance cost in September
2018 (by approx. 5% in retail price),
subsequently followed by the
introduction of advanced brake
restriction and the new emission norm(BS6). In addition, the whole market was
impacted by the lockdown which was
conducted throughout India from March
2020 due to the spread of COVID-19.

Sales of motorcycles in the six key
ASEAN countries (Indonesia, Thailand,
Vietnam, the Philippines, Malaysia,
and Cambodia) in FY2019 decreased
by 4% to 13,630,000 units year-onyear. Sales decreased in all countries
except Malaysia (Indonesia, Thailand,
V i e t n a m , t h e P h i l i p p i n e s, a n d
Cambodia).

Suzuki Sales
Suzuki’s sales increased by 2% to685,000 units year-on-year. Suzuki
was the only brand to record year-onyear growth mainly owing to steadysales expansion of the key scooter
Access 125, and partly owing to new
introduction of the Burgman Street.

*1 Registered units including imported units*2 Factory shipments of the four Japanese manufacturers*3 Factory shipments

Suzuki Sales
Suzuki’s sales decreased by 20% to309,000 units year-on-year. While
sales expanded in Thailand by 7%,
sales decreased in the Philippines
owing to the impact of the Taal
volcano eruption in January, and
COVID-19. Likewise, sales decreased
in countries including Indonesia
owing to the impact of COVID-19.

Motorcycle sales (ATV included)(Thousand units)

Suzuki Sales Units

801

798

171

723
692

95
52
4

60

57

49

180

711

Suzuki Sales Units[Full Year Comparison: from April to March]–8 Thousand units (–13.6%)
57

Suzuki Sales Units[Full Year Comparison:from April to March][Full Year Comparison:from April to March]+16 Thousand units (+2.5%)–75 Thousand units (–19.7%)

669

384

685

28

5

636

44

49
41

36

8

35

6

251cm3~8

126~250cm3309

3FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

FY2018 FY2019

Japan

India

Asia
(excl. India)

North America

Others

Japan

India

Asia
(excl. India)

EuropeNorth America

OthersTotal overseas motorcycle production (including ATVs) for FY2019 increased by 0.1% to 1,634,000 units year-on-year. Worldwide production, including
Japan, decreased by 1.0% to 1,729,000 units year-on-year.
Sales of motorcycles (including ATVs) in overseas market decreased by 1.7% to 1,659,000 units year-on-year, while total global sales, including Japan, also
decreased by 2.1% to 1,708,000 units year-on-year.

Operating Results for FY2019
The net sales decreased by ¥12.5 billion (4.9%) to ¥242.6 billion year-on-year, despite the increasein sales in India, mainly owing to the decrease in sales in Europe, North America, and Indonesia andthe appreciation of the yen. The operating income decreased by ¥2.9 billion (80.9%) to ¥0.7 billion
year-on-year, mainly owing to the impact of COVID-19 in the end of the fiscal year.

18 ANNUAL REPORT 2020

Suzuki’s sales decreased by 14% to 49,000 units year-on-year. Sales of models
with engine displacements of 126cm3 and higher*1 increased by 6% to 14,000
units year-on-year. Sales of models with engine displacements up to 125cm3 *3
decreased by 20% to 35,000 units year-on-year.

cooled engine which uses the engine oil as a cooling device. This new cooling system

773

115

[ASEAN]

Overall Market*Sales units are based on Suzuki research on outside data.

853

Special Topic

Sales of motorcycles in Japan in FY2019 decreased by 3% to 359,000 units
year-on-year. Sales of models with engine displacements of 126cm 3 andhigher*1 increased by 2% to 125,000 units year-on-year. Sales of models withengine displacements up to 125cm3 *2 decreased by 6% to 234,000 units yearon-year. While sales of models with engine displacements up to 125cm 3decreased owing to structural concerns of poor demand in the domestic market
such as aging of users and decrease in younger population, it is assumed thatsales of models with engine displacements of 126cm3 and higher increased
year-on-year owing to the introduction of various new models by each brand.

Suzuki Sales

Production Units/Sales Units

Marine Business, etc.

Market Overview by Region *Sales units are based on Suzuki research on outside data.

Business policy
We have made efforts to convert the business into a profit-making one as the Motorcycle In-house
Company directly supervised by the President since April 2019, and we were able to achieve certain
results, such as stable profits by reducing fixed costs. As our next step, we will return that business tothe motorcycle division and continue to restore business activity to normal.
Main Products

Motorcycle Business

26

Cambodia

183

Philippines

23
20

Thailand

213

21
616
20

647

Scooter

51~125cm3

23
19

3.6
Operating results ofmotorcycle business

23
15(Billion yen)101

~50cm3Operating income
MarginBackbone

1.4%

0.7
0.3%

FY2018FY2019(Thousand units)

FY2018FY2019* ~125cm3 = factory shipments
126cm3~ = units registered53

38

FY2018FY201957(Thousand units)

VietnamIndonesia(Thousand units)

FY2018FY2019ANNUAL REPORT 202019

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Overview

Business Report (Motorcycle Business/Marine Business, etc.)[Europe/North America]
Overall Market

Suzuki Sales

Sales of motorcycles in Europe in FY2019 decreased by 3% to 1,039,000 units
year-on-year. Sales in North America (including ATVs) were flat on the year at759,000 units.

Suzuki’s sales of motorcycles in Europe decreased by 7% to 39,000 units year-onyear with a market share of 3.8%. Suzuki’s sales decreased in line with the overallmarket, but they were kept at this level by newly introducing the A2 (35kW)
specification of the GSX-S750, which took in the needs for beginner riders. In North
America, sales (including ATVs) decreased by 4% to 35,000 units with a market
share of 4.6%, but the sales of off-road models and ATVs increased by 6% to15,000 units year-on-year.

[Full Year Comparison: from April to March]–3 Thousand units (–7.3%)–1 Thousand units (–4.0%)

42

36

35

6

6

Business Policy (Marine Business)
The Group will reinforce and expand its large four-stroke outboard lineup and cultivate the business andleisure markets to build the world’s top outboard brand under the brand slogan “THE ULTIMATEOUTBOARD MOTOR”.
Main Products

Special Topic

Net sales
contribution ratio

2.5%

Outboard Motors, Motorized Wheelchairs, Houses, etc.

39
9

Others

6

6

Spain

8

8

France

5

4

UK

5

5

Italy

8

8

Germany

FY2018FY2019DF300B (Unveiled in August 2019)
DF300B, which has a maximum output of 300PS, is installed with advanced technologies. By
combining high-efficiency contra-rotating propellers called the Suzuki Dual Prop System and acompact 2-Stage Gear Reduction, it was able to realize high propulsion power which enabled
it to be installed onto a heavy boat as a result of a large reduction gear ratio.

Canada
00

28
30

30

29

(Thousand units)

U.S.A.

Operating Results for FY2019(Thousand units)

FY2018FY2019The net sales increased by ¥4.5 billion (5.4%) to ¥88.4 billion year-on-year mainly owing to increasein sales of outboard motors in Europe and motorized wheelchairs in Japan. The operating income
increased by ¥0.3 billion (1.6%) to ¥17.3billion year-on-year. Although the marine business alone
increased net sales by ¥1.5 billion (2.1%) to ¥74.5 billion year-on-year, operating income decreasedby ¥0.4 billion (3.1%) to ¥14.1 billion year-on-year partly owing to slowdown in North America in
the January-March period.

FY2019 Topics[Japan][ASEAN]- Launched the all-new KATANA, a large displacement motorcycle equippedwith contemporary technologies in May 2019. It derives from the original
GSX1100S KATANA that won the hearts of riders around the world when it
was showcased at the Cologne Motor
Show in 1980. It has been making
strong sales since its launch, and it
won the Most Valuable Gold Prize inthe 251cm3 or above class at the 2ndJapan Bike of the Year 2019 held in
December 2019.
KATANA- Unveiled the Raider J Crossover, an underbone
model designed for market in the Philippines inMarch 2020. It realizes high performance on
both paved and unpaved roads.

[India]- Launched full-model change of the
GIXXER series in May 2019. The series
met the new emission norm (BS6) and
was also joined with GIXXER 250
series equipped with Suzuki’s uniqueoil-cooled engine.

20 ANNUAL REPORT 2020

Marine Business, etc.

[North America] Suzuki Sales Units[Full Year Comparison: from April to March]

10

Motorcycle BusinessBusiness Overview (Marine Business, etc.)

Market Overview by Region *Sales units are based on Suzuki research on outside data.

[Europe] Suzuki Sales Units

Automobile Business

17.0

17.3

20.3%

19.5%

FY2018FY2019(Billion yen)
Operating income
MarginFY2019 Topics- DF300B, a large regular gasoline model which adopts state-of-the-art
technologies including the contra-rotating propellers common to the DF350A
flagship outboard motor, was launched worldwide from the end of 2019.

Raider J Crossover[Europe/North America]- Unveiled the all-new full-model change ofthe V-STROM 1050 and the V-STROM
1050XT at the EICMA 2019 (Milan Show)
held in Milan, Italy in November 2019.
- At the MotoGP racing, Suzuki’s rider Alex
Rins won at the 3rd round Americas GP and
the 12th round British GP. He ended 4th inrider’s point ranking of the season.

Operating results of marine
business, etc.

TRO

- Suzuki announced to newly establish the Suzuki Marine Technical Center USA in
Panama City, Florida. The center will conduct testing of marine products, which is a firstof-its-kind facility outside of Japan for Suzuki. Since the U.S. is the largest market for
Suzuki’s marine business, the Company decided to set up a new facility in the easternregion of the country. By conducting development in an environment much closer to thecustomers, the Company aims to make more attractive and reliable products.

0 0 T

00

GIXXER 250

ANNUAL REPORT 202021

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Overviewof the Suzuki Clean Ocean ProjectSpecial Topic: -Start
Developed the world’s first Micro-Plastic Collecting Device for outboard motors
2020 is the 10th year of our continuous activities to clean the waterside. On thisoccasion, we have reviewed what we can do to newly determine our direction, andstarted the Suzuki Clean Ocean Project, a new initiative focused on marine plastic waste.
The project includes the following commitments based on our previous efforts.

Automobile Business

Motorcycle Business

Marine Business, etc.

Special Topic[Project 3.] Develop the world’s first* Micro-Plastic Collecting Device for outboard motors

Symbol mark of the Suzuki Clean Ocean Project[Project 1.] Continue the waterside clean-up activities to collect marine plastic waste
The Suzuki Group always appreciates that both of our lives and our marine business are madeup of water, and our employees and their families have been voluntarily cleaning rivers, sea,
lakes, etc. where outboard motors are used. Such clean-up activities were first held in 2010 at
Lake Sanaru in Hamamatsu, and since the 2nd time, we expanded the clean-up activities to theworld as “CLEAN-UP THE WORLD CAMPAIGN” and called for our overseas dealers. The total
number of participants have exceeded 8,000 people from 26 countries. 2020 is the 10th year of
the campaign, and going forward, we will continue the clean-up activities throughout the world
and further develop the campaign.

Outboard motor installed with Micro-Plastic Collecting Device

Marine plastic waste has become a significant environmental issue in the recent years and a huge amount ofsuch wastes that has not been gathered correctly flow into the ocean. They are then broken down into microplastic under the natural environment and their impact on the ecological system is also becoming a concern.
To tackle these issues, we focused on the structure of the outboard motor, which pumps up tons of seawater tocool the engine and then returned to the ocean. We developed a collecting device which collects micro-plastic
waste utilizing the returning water. Through this device, micro-plastic waste around the water surfaces can becollected just by running the boat.
*Suzuki research as of 1 October 2020.

Clean-up activities conducted worldwide (photos taken in 2019)

The activity is in line with the concept of the “Plastics Smart Campaign - for sustainable ocean -” which is
promoted by the Ministry of the Environment toward solution of global marine plastic issues, and was registered
to the campaign since 2018. The activity is also introduced at the Ministry’s website.

http://plastics-smart.env.go.jp/en

The device can be installed to a return hose easily, and it does not affect the engine performancesince it only utilizes the returning water that have already been used to cool the engine.
According to the monitoring research conducted in Japan, microplastic waste was found within
the substances collected through the filter. The research is also being conducted abroad andfurther improvements will be made. We plan to introduce the device as an optional part from2021 and incorporate it into the standard feature in the future.

[Project 2.] Reduce plastic packaging of outboard motors and marine genuine parts
To reduce plastic waste from our business activity, we have started taking action towards
reducing the plastic packaging of Suzuki outboard motor products. We adopted alternative
packaging materials to some of the products manufactured in June 2020. We are currently
assessing their feedback from the market.
For part of the Suzuki marine genuine parts, we have started replacing packaging materials fromplastic to paper beginning with October 2020 shipment. Approximately 2.3 tons of plastic will
be reduced every year if all packaging of marine genuine parts are replaced to eco-friendly
materials.

Actual micro-plastic waste collected during the monitoring research

Propelling the Suzuki Clean Ocean Project is one of our initiatives to solve social issues
listed in the SDGs (Sustainable Development Goals). It also expresses Suzuki’s
commitment to pursue its brand slogan of “THE ULTIMATE OUTBOARD MOTOR” in theenvironmental aspect.
Conventional packaging material (left) and paper
packaging (right) of Suzuki marine genuine parts

In order to clean the ocean, Suzuki will promote the Suzuki Clean Ocean Project together with partners and boat users all around the world under these threecommitments.

22 ANNUAL REPORT 2020

ANNUAL REPORT 202023

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

GovernanceDirectors, Auditors and Officers

Directors, Auditors, and Officers

Corporate Governance

Risks in Operations(as of 1 December 2020)

Representative Directors

Audit & Supervisory Board Members

Representative Director
and Chairman

Representative Director
and Vice Chairman(Chairman of the Board of Directors)

Supporting Chairman

Osamu Suzuki

Yasuhito Harayama

Representative Director
and President

Representative Director
and Senior Technical Executive
Chief Technology Officer, and Chief Officer, Inspection Reform Committee

Toshihiro Suzuki

Audit & Supervisory Board Member

Audit & Supervisory Board Member

Toyokazu Sugimoto

Masato Kasai

Audit & Supervisory Board Member (Outside)

Audit & Supervisory Board Member (Outside)

Audit & Supervisory Board Member (Outside)

Norio Tanaka

Nobuyuki Araki

Norihisa Nagano

Osamu Honda

Directors

Director and Managing Officer

Director and Managing Officer

Executive General Manager, Corporate Planning Office,and Committee, Inspection Reform Committee

Executive General Manager, Domestic Marketing I,
Domestic Marketing

Masahiko Nagao

Toshiaki Suzuki
Officers(as of 1 December 2020)

Executive Vice
President
Senior Managing
Officer

Director (Outside Director)

Director (Outside Director)

Director (Outside Director)

Osamu Kawamura

Hideaki Domichi

Yuriko Kato

ResumeJan. 1973 Representative Director and President of CHANSONCOSMETICS HONPO CO., LTD.
Representative Director and President of CHANSONSHOJI CO., LTD.
(Both companies were merged in September 1997 into a
company currently known as CHANSON COSMETICS INC.)
Feb. 1973 Representative Director and Chairman of Shizuoka
Information Processing Center (To the present)
July 1975 Representative Director and Chairman of CHANSONYUSHI KOGYO CO., LTD.
(currently known as CARING JAPAN INC.) (To the present)
Feb. 1977 Representative Director and President of Takken Inc.
(To the present)
Nov. 2006 Representative Director and Chairman of CHANSON TEAWORLD CO., LTD. (To the present)
Oct. 2017 Representative Director and Chairman of CHANSONCOSMETICS INC. (To the present)

24 ANNUAL REPORT 2020

ResumeApr. 1972 Joined Ministry of Foreign Affairs
Aug. 2003 Director-General of Middle Eastern and African Affairs
BureauJune 2004 Ambassador of Japan to Iran
Sept. 2007 Ambassador of Japan to India and Kingdom of Bhutan
Feb. 2011 Ambassador in Charge of Economic Diplomacy
Apr. 2012 Executive Senior Vice President of Japan International
Cooperation Agency
Oct. 2016 Senior Managing Officer of Hotel Management
International Co., Ltd.
June 2017 External Audit & Supervisory Board Member of Konoike
Transport Co., Ltd. (To the present)

ResumeOct. 2009 Founder and President of M2Labo. Inc. (To the present)
June 2015 Outside Director of Toclas Corporation
Mar. 2017 Founder and Representative Director of VegiBus Inc.
(To the present)
Mar. 2018 Outside Director of SHIZUOKA GAS CO., LTD.
(To the present)
July 2018 Representative Director of Glocal Design School Inc.

Kenichi Ayukawa
Ichizo Aoyama

Managing Director and CEO,
Maruti Suzuki India Ltd.
President, TDS Lithium-ion Battery Gujarat
Private Limited (India)

Managing Officer

Satoshi Uchida

Chairman, S.M.A.I. (USA)Managing Officer

Shigetoshi Torii

Managing Officer in charge of Production
Engineering and Purchasing, and Deputy Chief
Officer, Inspection Reform Committee

Managing Officer

Masayuki Fujisaki

Executive General Manager, AllianceManaging Officer

Shinichi Akama

Branch Manager, Tokyo Branch
Executive General Manager, Legal/IP

Managing Officer

Taisuke Toyoda

Executive General Manager, Audit

Managing Officer

Keiichi Asai

Executive General Manager, Inspection,
and Deputy Chief Officer,
Inspection Reform Committee

Managing Officer

Kazuki Yamaguchi

President, Suzuki Motor Sales Kinki Inc.

Managing Officer

Yutaka Kikukawa

Managing Officer

Kinji Saito

Managing Officer

Masahiro Ikuma

Managing Officer

Keiji Miyamoto

Managing Officer

Hisanori Takashiba

Managing Officer

Shinichi Imaizumi

Executive General Manager,
Global Automobile Marketing
Executive General Manager,
Domestic Marketing II, Domestic Marketing
Executive General Manager,
Domestic Marketing Administration & Promotion

Managing Officer

Masamichi Suzuki

Managing Officer

Naoki Suzuki

Executive General Manager, New Mobility Service

Managing Officer

Hisashi Takeuchi

Managing Officer

Yukihiro Yamashita

Managing Officer

Kenichiro Toyofuku Supporting CEO, Maruti Suzuki India Ltd.

Managing Officer

Naomi Ishii

Managing Officer

Kazunobu HoriManaging Officer

Katsuhiro KatoManaging Officer

Shigeo Yamagishi

Managing Officer

Yasuharu Osawa

Executive General Manager, Human Resources &General Affairs, and Committee, Inspection
Reform Committee
Executive General Manager,
Customer Quality Assurance and Service
Executive General Manager, Vehicle Regulations
and Engineering Administration, and Deputy
Chief Officer, Inspection Reform Committee
Division General Manager, Marine Operations,and Managing Officer in charge of USA

Executive General Manager,
Automobile Vehicle Engineering
Executive General Manager, Automobile
Electrical/Electronic Engineering
Managing Officer in charge of Automobile Cost
Reduction
Executive General Manager,
Asia Automobile Marketing
Executive General Manager,
Automobile Powertrain Engineering

Supporting President

ANNUAL REPORT 202025

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

GovernanceCorporate GovernanceDirectors, Auditors, and Officers

General Meeting of Shareholders

Board of Directors

Introduced executive officers system in 2006
Appointed outside directors from 2012,
2 outside directors among 9 total

2 outside directors 3 outside directors
among 7 total
among 9 total

2 outside directors among 8 total
Corporate Governance Dept.
Secretariat of Audit & Supervisory Board

Reduced to 15

Not more than 30 from 1989

Advisory Committee on Personnel
and Remuneration, etc.

Committees

VisionCorporate Governance Committee

Reports

Evaluates
appropriatenessof audit

Instructs

Reports

Instructs

Audits accounts

Reports

Supervises

Presents/Reports[Board of Directors]
In June 2006, the Company reduced the number of directors
from 29 to 14, following the introduction of a managing officer
system to facilitate agile business execution and to clarify
responsibility. The number of directors has since been reduced to
speed up the decision-making process of the Board of Directors.
Furthermore, in order to strengthen the management oversightfunction and to receive useful advice and guidance on the
Company’s management based on their extensive experienceand expertise, two outside directors were appointed in June
2012, and the number of outside directors was increased by one
in June 2020, bringing the current number of outside directors
to three (two men and one woman), or one-third of the total

number of directors.
In principle, the Board of Directors meets once a month and also
as needed to strengthen supervision by making decisions on
basic management policies, important business execution
matters, matters authorized by the General Meeting of
Shareholders to the Board of Directors, and other mattersprescribed by law and the Articles of Incorporation based on
sufficient discussion, including from the perspective of legal
compliance and corporate ethics, as well as receiving reports on
the execution of important business operations as appropriate.
In order to clarify managerial accountability for individual
Directors and flexibly respond to the changing businessenvironment, the term of each Director is set to one year.

Drafted “Mission Statement” in 1962
Drafted Suzuki Activity Charter,
Suzuki employees Activity Charter in 2003

Suzuki Group
Code of Conduct

Corporate Governance System
The Company has adopted the current system with the thoughtof statutory company auditor system being the foundation andestablishment of Advisory Committee on Personnel and

26 ANNUAL REPORT 2020

Risk Management Hotline(Internal reporting system)

Headquarters / Group Companies

Term of board members shortened to 1 year from 2002

CorporatemissionExternal
Attorneys

Toshihiro Suzuki

Supporting
div.

Code ofconduct

Corporate GovernanceCommittee

Osamu Suzuki
Chairman and President
from 2008 to 2015

Reports

Secretariat
of Audit &Supervisory Board

Audits

FY2020Accounting
AuditorCollaborates

Audits

FY20195 Members(3 of which are Outside Audit &Supervisory Board Members)

Elects/Dismisses

Audits accounts

Promotes
compliance andrisk management

FY2018

New Mid-Term Management Plan SUZUKI NEXT100(FY2015~FY2019)

Supervision
Execution

Seats

FY2017

Evaluates
appropriatenessof audit

Audit & Supervisory Board

Audit
Division

Consults/Reports

Mid-Term Management Target(FY2010~FY2014)

Term

Outside directors,
total directors

Advisory Committee
on Personnel andRemuneration, etc.

Instructs

FY2016ChairmanPresident

9 Directors (3 of which are Outside Directors)

Reports

FY2015

AuditsBoard of Directors

Executive Committee
Meetings Relating toBusiness
Operations and Management

Corporate Governance Enhancement

Elects/Dismisses

Elects/Dismisses

Consults

continuing efforts to ensure the rights and equality of theshareholders and the effectiveness of the Board of Directors andthe Audit & Supervisory Board as well as to upgrade the internal
control system.
Also, in order to be trusted further by society and stakeholders,we will disclose information quickly in a fair and accurate
manner prescribed in laws and regulations and actively disclose
information that we consider is beneficial to deepen theirunderstanding of the Company. Thus we will further enhance
the transparency of the Company.

Reports Finds

Through fair and efficient corporate activities, the Company aims toearn the trust of our shareholders, customers, suppliers, local
communities, employees, and other stakeholders, and to makefurther contribution to the international community in order tocontinue to grow and develop as a sustainable company. To achieve
this goal, the Company recognizes that continuous improvement ofcorporate governance is essential, and as a top priority management
issue, we are actively working on various measures.
In consideration of the meaning of the respective principles of
the Corporate Governance Code, the Company will make

Mid-Term
Management Target

Risks in Operations(As of June 2020)

Corporate Governance System

Basic Policy on Corporate Governance~FY2014

Corporate Governance

Remuneration, etc. and appointment of highly independent
Outside Directors enables improvement of governance.

Composition of the Board of Directors, and meeting attendance
Attendance to the Board of
Directors meeting (in 2019)

Composition
Representative Director and Chairman (Chairman of the Board of Directors)

Osamu Suzuki

19 times/ 19 times

Representative Director and Vice Chairman

Yasuhito Harayama

18 times/ 19 times

Representative Director and President

Toshihiro Suzuki

19 times/ 19 times

Representative Director and Senior Technical Executive

Osamu Honda

19 times/ 19 times

Director and Managing Officer

Masahiko Nagao

19 times/ 19 times

Director and Managing Officer

Toshiaki Suzuki(Appointed in June 2020)

Outside Director

Osamu Kawamura(Appointed in June 2020)

Outside Director

Hideaki Domichi(Appointed in June 2020)

Outside Director

Yuriko Kato

(Appointed in June 2020)

ANNUAL REPORT 202027

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

GovernanceCorporate GovernanceDirectors, Auditors, and Officers[Audit & Supervisory Board]As an independent organization which plays a part in corporate
governance, the Company Auditors conduct audits conformingwith the auditing standards of the Audit & Supervisory Board forproper managerial executions, as well as expressing theiropinions to the management members as appropriate.

Composition of the Audit & Supervisory Board, and meeting attendanceComposition

Attendance to the Audit &Supervisory Board meeting (in 2019)

Attendance to the Board of
Directors meeting (in 2019)

Full-time Company Auditor

Toyokazu Sugimoto

13times/ 13 times

15 times/ 15 times(*Note)Full-time Company Auditor

Masato Kasai

11 times/ 13 times

13 times/ 15 times(*Note)Outside Company Auditor

Norio Tanaka

16 times/ 16 times

19 times/ 19 times

Outside Company Auditor

Nobuyuki Araki

16 times/ 16 times

19 times/ 19 times

Outside Company Auditor

Norihisa Nagano

13 times/ 13 times

15 times/ 15 times(*Note)(*Note: Attendance is those held after assumption of office as Company Auditor on 27 June 2019)

Full-time Company Auditors actively and proactively exercise
their authority to express their opinions at meetings of the Boardof Directors and other important meetings as appropriate.
Specifically, important meetings include full-time Directors’
meetings, business reporting meetings, monthly reporting
meetings, the ringi (request for approval) deliberation meetings,
product planning meetings, and division meetings for the reformof motorcycle business. In addition, as an observer, Company
Auditors participate in the Advisory Committee on Personnel andRemuneration, etc., the Inspection Reform Committee, theCorporate Governance Committee, the Quality AssuranceCommittee, and the Environment Committee, and express theiropinions as necessary.
In addition, Company Auditors receive detailed audit reports
from Audit HQ, which is an internal audit division, and confirm
the content of each audit and provide their opinions. In addition,
Company Auditors also audit the execution of business
operations in light of the duty of care and loyalty of the
management members. With respect to the major overseas
subsidiaries, in addition to holding hearings and exchanging

opinions with the directors and other members of thesubsidiaries, Company Auditors visited them directly toinvestigate their operations and financial conditions, etc. asnecessary.
Outside Company Auditors attend meetings of the Board of
Directors and the Audit & Supervisory Board, as well as various
meetings on management and execution of operation, andexpress their opinions as necessary, and all of them are membersof the Advisory Committee on Personnel and Remuneration, etc.
In addition, opinions are exchanged with the Representative
Director and Outside Directors.
Based on the above, the Audit & Supervisory Board received
reports from each Company Auditor on the status and results of
their audits, and made efforts to discuss and share information.
Furthermore, the Audit & Supervisory Board regularly receives
reports from the accounting auditors on the audit plan, theresults of quarterly reviews, and the status of annual audits,
witnesses accounting audit to know the status of the audit
conducted, and strives to strengthen collaboration by exchanging
opinions and sharing information as appropriate.

[Executive Committee and other various meetings on management and execution of operation]
In order to promptly deliberate and decide on importantAlso, various meetings are held periodically and whenevermanagement issues and measures, the Executive Committee,
necessary to deliberate business plans etc. and to receive
which is attended by Executive Officers and General Managers,
reporting on operation of the company, enabling the Company
etc. as well as the Company Auditors (Specified Company
to appropriately plan, identify administrative issues and grasp the
Auditors) as an observer, and other various meetings attended
situation on execution of operation.
by Directors, Company Auditors and divisional responsible
In such way, the Company is enhancing efficiency of decisionpersons (Managing Officers and divisional general managers,
making at the meetings of Board of Directors and supervision onetc.) are held regularly and as needed to report and shareexecution of operation.
information on management and business execution.

[Corporate Governance Committee]
Corporate Governance Committee has been established to
examine matters to ensure compliance and risk management, as

28 ANNUAL REPORT 2020

well as to promote the implementation of measures and policies
for Suzuki Group’s sustainable growth and the medium- to long-[Internal Auditing]
As an organization under the direct control of the President, staff
members with expertise in various areas of the Company’s
operations regularly audit the Company’s divisions and domestic
and overseas affiliates in accordance with the audit plan.
Operational audits include on-site and paper audits to confirm
the appropriateness and efficiency of overall operations,compliance with law and internal rules, and the development
and operation of internal controls, such as the management andmaintenance of assets. The operational audit results are reported
to the President, the heads of related divisions, and full-time
Company Auditor, as well as to the Board of Directors once every
six months, at each audit along with suggestions for
improvement on findings. Advice and guidance are provided
until improvements are completed to solve issues at an early

Corporate Governance

Risks in Operations

timing.
In addition, the effectiveness evaluation of internal controls overfinancial reporting in accordance with Article 24-4-4, Paragraph
1 of the Financial Instruments and Exchange Act is conducted by
the Corporate Governance Committee, and the results arereported by the Corporate Governance Committee to the Boardof Directors and the Board of Company Auditors. For subsidiaries
with an internal audit division, Internal Audit checks theiractivities, receives reports on their audit plans and results, andprovides advice and guidance as necessary.
Furthermore, Audit results are shared with the accounting
auditor as needed, and regular meetings are held to share
information, enhance communication, and maintain close
cooperation.

Personnel, remuneration, etc. of Officers[Advisory Committee on Personnel and Remuneration, etc.]
Aimed to enhance clarity and objectivity upon electing
candidates for Directors and Auditors, as well as deciding
remuneration of Directors, as an advisory committee for the
Board of Directors, the Company establishes the “Advisory
Committee on Personnel and Remuneration, etc.”.
The Committee discusses issues such as election standards andadequacy of candidates for Directors and Auditors, as well as

adequacy of system and level of Director’s remuneration. The
Board of Directors decides based on their results.
Decision for election and remuneration of Managing Officers arealso based on results of the Committee’s discussion.
Committee meetings are held as needed, and since its
establishment on April 2015, all committee members andobservers have attended the meetings held so far, while thefrequency of meetings varies from year to year.

Composition of the Advisory Committee on Personnel and Remuneration, etc.

Committee

ObserverRepresentative Director and Chairman (Chairman of the Committee)

Osamu Suzuki

Representative Director and President

Toshihiro Suzuki

Outside Director

Osamu Kawamura

Outside Director

Hideaki Domichi

Outside Director

Yuriko Kato

Outside Company Auditor

Norio Tanaka

Outside Company Auditor

Nobuyuki Araki

Outside Company Auditor

Norihisa Nagano

Full-time Company Auditor

Toyokazu Sugimoto[Policy on Directors’ remuneration]
Directors’ remuneration (excluding outside directors) shall consistof fixed basic remuneration by position (Basic Remuneration),
remuneration linked to the performance of each fiscal year
(Bonuses), and restricted stock remuneration linked to themedium- to long-term stock price, in order for the remuneration
to function as an incentive for the Company’s sustainablegrowth. The ratios are generally estimated to be 40% fixed
remuneration, 30% performance-linked bonus and 30%

restricted stock remuneration.
The restricted stock remuneration is calculated based on thecriteria for each position, and in order to provide incentive
remuneration for the sustainable improvement of corporate
value during the director’s term of office, the restricted stocktransfer period is set from the date of allotment of restricted
stocks to the date of retirement from the position of director.
Outside directors’ remuneration shall be fixed remuneration only.

term enhancement of corporate value.

ANNUAL REPORT 202029

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

GovernanceCorporate GovernanceDirectors, Auditors, and Officers

Amount of remuneration, etc. for Directors and Audit & Supervisory Board Members for the fiscal year
Classification of Directors/
Audit & Supervisory Board Members

Total amount of
remuneration, etc.

Directors (excluding Outside Directors)
Outside Directors

Amount of each type of remuneration, etc.

Number of Payees(Directors/Audit &Supervisory Board
Members)

Basic remuneration

Bonus

Remuneration as the formof share acquisition¥359 million¥138 million¥188 million¥102 million

7 people¥28 million¥28 million--

2 people

Total¥387 million¥166 million¥188 million¥102 million

9 people

Audit & Supervisory Board Members(excluding Outside Audit & Supervisory
Board Members)¥38 million¥38 million--

4 people

Outside Audit & Supervisory Board
Members¥26 million¥26 million--

4 people

Total¥65 million¥65 million--

8 people

Notes: 1. The amount of remuneration for Directors (basic remuneration and bonus) has been resolved to be 750 million yen or less per year (of which 36 million yen or less per year is for Outside
Directors). In addition to this, the amount of remuneration for Directors not including Outside Directors for granting restricted stock has been resolved to be 300 million yen or less per year.
(Both: the 151st Ordinary General Meeting of Shareholders held on 29 June 2017)[Independence of Outside Directors and Outside Company Auditors]
As to independence from the Company with regard to theelection of Outside Director/Company Auditor, the Company
judges their independence under the below “Standard for

Auditors of the Company” based on “independence criteria” setby Tokyo Stock Exchange, Inc. Suzuki reports all the elected
Outside Directors and Outside Auditors to the Tokyo Stock
Exchange as independent officers.

Independence of Outside Directors and Outside Company<The Standard for Independence of Outside Directors and Outside Company Auditors>
The Company will not elect any person who falls under any of the followings as a
candidate Outside Director or Outside Company Auditor in order to ensure theindependence:
1. Persons concerned with the Company and its subsidiaries (“the Group”)(1) With regard to Outside Directors, any person who is or was a person executing
business (Note 1) of the Group at present or in the past,(2) With regard to Outside Company Auditors, any person who is or was a Director,
Managing Officer or employee of the Group at present or in the past, or(3) A spouse or a relative within the second degree of kinship of the present
Director or Managing Officer of the Group.
2. Persons concerned such as business partners or major shareholders, etc. (Note 1)(1) Any person who is a person executing business of any of the followings:
A company of which major business partner is the Group (Note 2)
A major business partner of the Group (Note 3)
A major shareholder having 10% or more of total voting rights of the Company
A company for which the Group has 10% or more of total voting rights(2) A person who is or was a representative partner or a partner of the Group’s
Accounting Auditor at present or in the past five years(3) A person who receives a large amount of remuneration from the Group otherthan remuneration for Director/Company Auditor (Note 4)(4) A person who receives a large amount of donation from the Group (Note 5)(5) A spouse or a relative within the second degree of kinship of the person who
falls under category from (1) through (4) above(Note 1) A person executing business: A director executing business, a managing officer, an
executive officer or an employee(Note 2) A company of which major business partner is the Group : A company which belongs to
the group of the business partner who receives 2% or more of its consolidated net sales
in the latest business year ended of the group from the Group in any of the businessyear in past three years(Note 3) A major business partner of the Group : A company which belongs to the group of thebusiness partner who makes payment 2% or more of the Group’s consolidated net sales
or provides the Group with 2% or more of loans of its consolidated total assets in thelatest business year ended of the Group in any of the business year in past three years(Note 4) A person who receives a large amount of remuneration : A consultant or legal or
accounting expert who receives annual compensation 10 million yen or more (for theorganization, 2% or more of its annual total revenues) in any of the business year in past
three years(Note 5) A person who receives a large amount of donation : A person who receives annual
donation 10 million yen or more (for the organization, a person directly involved in
activities which is the purpose of the donation) in any of the business year in past three
years

Training of Officers
The Company implements trainings that allow Directors and Company
Auditors to deepen their understanding of their respective roles,
responsibilities, etc. We intend to make the training an opportunity inwhich Directors and Company Auditors take part together in principle,
so that they can share the information on their respective roles,
responsibilities, etc.
When a new Outside Director or a new Outside Company Auditor
30 ANNUAL REPORT 2020

assumes post in the Company, the Company will explain to the person
the Company objectives, lines of business, finances, organizations, etc.
In addition, the Company will prepare opportunities, such as interaction
with Directors, Managing Officers and employees in the Company,
attending various meetings related to corporate management andbusiness execution, and joining factory inspections, to ensure that theperson can deepen understanding of the Company.

Risks in Operations

Policies regarding cross-shareholdings, reductions, etc.
The Company will hold shares of business partners and others forrealizing sustainable growth and enhancing our mid- and long-term
corporate value when we determine that such shareholdings willcontribute to creation of business opportunities, business alliances
as well as establishment, retention, reinforcement, etc. of stabletransactions and cooperative relations.
Appropriateness of individual cross-shareholdings is examined by
the Board of Directors every year. The Company makes acomprehensive judgment on the accompanying benefits, risks, etc.
of holdings taking into consideration nature, scale, etc. oftransactions and setting qualitative criterion including aspect ofenhancement of corporate value and quantitative criterion including
comparison with capital costs for judgment, and once a stock is
decided to be sold, then the Company shall advance reduction.
In FY2019, the Company sold 6 listed company stock brands, as aresult of examination by the Board of Directors.

Number of Brands held and Amount Recorded in the Balance Sheet
Number of Brands

End of March 2018

End of March 2019

End of March 2020

Unlisted Company stocks

41

41

42

Stocks other than Unlisted Company stocks

94

88

80

End of March 2018

End of March 2019

End of March 2020

Unlisted Company stocks

17,173

17,126

16,907

Stocks other than Unlisted Company stocks

121,014104,109

123,422

2. The amount of remuneration for Audit & Supervisory Board Members has been resolved to be less than 120 million yen or less per year. (the 151st Ordinary General Meeting of Shareholders
held on 29 June 2017)
3. As described in “Policy on determining the amount of remuneration, etc. for Directors/Audit & Supervisory Board Members,” based on a calculation method linked to the Company’s businessperformance for the fiscal year, ¥189.9 million had been recorded as “bonuses” for the above Directors (excluding outside Directors). However, since the improper conducts regarding the final
vehicle inspection operation was revealed, the Company decided not to pay Directors’ bonuses for the 153rd term.
4. The above-mentioned “bonus” and “remuneration as restricted stock” are amounts reported as expenses for the fiscal year.

Corporate GovernanceAmount recorded in the balance sheet (in million yen)

The Company will exercise the voting rights under crossshareholdings examining for each agenda from the viewpoint ofconditions of their operation, contribution to raising our mediumand long-term corporate value and whether subject agenda does
not spoil stakeholders’ value while respecting the management

policy of the companies in which we hold shares. As specially
focused agendas, the Company assumes introduction of antitakeover measure, business reorganization, agendas relating toappointment of directors in the cases of continuously deteriorating
business performance, etc.

Compliance System and Risk Management System
The following is the basic policies regarding the systems to ensure the appropriateness of execution of duties (internal
control systems), which were resolved at the Board of Directors Meeting of the Company.

Basic Policy
1. Systems to ensure that Directors’ and employees’ execution of
their duties complies with laws and regulations and the Articles
of Incorporation(1) The Board of Directors shall formulate the “Suzuki Group Code of Conduct” toensure Directors and Managing Officers and employees in the Company and its
Consolidated Subsidiaries (Suzuki Group) execute their duties in a healthymanner, as well as oversee the state in which the Code is fully known to theGroup.
(2) A corporate governance committee, chaired by the Director or Managing Officer
in charge of corporate planning, shall be established under the Board of
Directors. The Corporate Governance Committee shall deploy measures foradvancing in thorough compliance and promote efforts to address crosssectional challenges in coordination with the relevant sections.
(3) Executive General Managers shall clearly define the division of work among
their responsible sections and establish work regulations and manuals that
include compliance with laws and regulations related to their responsible
duties, approval and decision procedures, and rules for the confirmation processby other sections. Executive General Managers shall ensure that the people
concerned are fully aware of said regulations, manuals, rules, etc.
(4) The Human Resources Department shall hold seminars about compliance andindividual laws/regulations for executives and employees in a continuous
manner in cooperation with the Corporate Planning Office, Legal Department,
Engineering Department and other related departments.
(5) To prevent violations of laws and regulation and take corrective measures at an
early stage, a whistleblowing system (Suzuki Group Risk Management Hotline)that has both internal and external contact points, shall be established to allow
executives and employees of the Suzuki Group to report on breach of laws andregulations or their possibility without any disadvantageous treatment to thewhistleblower.
The Corporate Planning Office shall strive to make the whistleblowing systemfully known and to promote its use.

ANNUAL REPORT 202031

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

GovernanceCorporate Governance
2. Systems relating to the storage and administration of
information related to Directors’ execution of their duties
The minutes of meetings of the Board of Directors and other information related to
Directors’ execution of their duties shall be retained and administered byresponsible sections pursuant to laws, regulations and internal regulations, andshall be made available to Directors and Audit & Supervisory Board members for
examination when the need arises.

3. Rules and other systems relating to management of the risk of loss
(1) Important matters regarding corporate management shall be decided after
meetings of the Board of Directors, the Executive Committee, circular resolutions
and other systems deliberate and evaluate their risks in accordance with thestandard for deliberation.
(2) Executive General Managers shall establish work regulations and manuals that
include preventive measures against risks that can be presumed in their
responsible duties, and countermeasures in case of their occurrence. Executive
General Managers shall ensure that the people concerned are fully aware ofsaid regulations, manuals, measures, etc.
(3) To prepare for a large-scale disaster, action manuals and business continuity
plans shall be formulated, and drills shall be carried out.

4. Systems to ensure efficient execution of duties by Directors(1) Important matters regarding corporate management shall be deliberated at the
Executive Committee and other meetings prior to decision-making.
(2) The Board of Directors shall clarify responsibilities regarding the execution ofManaging Officers’ and Executive General Manager’s duties, and shall supervise
their execution.
(3) The Board of Directors shall receive reporting from the person responsible forthe execution of the duties, as necessary, on how the matters, which were
decided at meetings of the Board of Directors, the Executive Committee andother meetings, are executed. In response to reports, the Board of Directors
shall give necessary instructions.
(4) The Board of Directors shall formulate mid-term management plans that include
consolidated subsidiaries and regularly verify the progress of business plans forfiscal years as made by Executive General Managers in order to achieve the
mid-term plan.
(5) The Audit Department, which directly reports to the President, shall audit thestate of establishment and operation of internal controls, which are based on
the basic policies, on a regular basis and shall report on the outcome to theBoard of Directors.
The Board of Directors shall make Managing Officers and Executive General
Managers attend meetings of the Board of Directors, if necessary, and ask themto explain or report on issues that were detected in activities such as internal
audits and whistleblowing. Accordingly, the Board of Directors shall give
instructions for correction of the issues and require reporting on results.

5. Systems to ensure appropriateness of duties of the Corporate
Group consisting of the Company and subsidiaries(1) The Board of Directors shall formulate mid-term management plans that include
consolidated subsidiaries, and the presidents of the subsidiaries shall makebusiness plans in the fiscal years in order to achieve the mid-term plans.
(2) The Company shall set forth regulations for managing subsidiaries, which clarify
the departments that are responsible for administering the subsidiaries, andreceive reporting from subsidiaries on the situation of their business on aregular basis and on matters set forth in the regulations. Important mattersrelated to the corporate management of subsidiaries shall be subject to priorapproval from the Company.
(3) The Corporate Governance Committee shall deploy thorough compliance andmeasures for risk management, which include consolidated subsidiaries, to thepresidents of subsidiaries as well as give them necessary assistance incoordination with the relevant departments.
The Audit Department, directly reporting to the President, shall regularly audit
the state of dissemination of the “Suzuki Group Code of Conduct”, compliance,risk management and the state of establishment of a whistleblowing system as
32 ANNUAL REPORT 2020

Directors, Auditors, and Officers

well as report the results to the Board of Directors.
The Board of Directors shall make the presidents of subsidiaries attend meetingsof the Board of Directors, if necessary, and ask them to explain or report on
issues that were detected in activities such as internal audits andwhistleblowing. Accordingly, the Board of Directors shall give instructions forcorrection of the issues and require reporting on results.
(4) The Corporate Planning section shall create awareness for the “Suzuki Group
Risk Management Hotline” at subsidiaries to allow the Directors, Managing
Officers and employees of subsidiaries to report directly to the Company on
violations or possible violations of laws and regulations.

6. Matters for employees to support the business of the Audit &Supervisory Board Members when the Audit & Supervisory Board
Member seeks appointment of the employees; matters forindependence of such employees from the Directors; and mattersfor ensuring the efficiency of instructions given the employees(1) The Company shall establish the Secretariat of Audit & Supervisory Board inwhich staff is dedicated to executing their duties under the direction of Audit &Supervisory Board Members.
(2) Audit & Supervisory Board Members whom the Audit & Supervisory Board
appoints can ask a change of their staff anytime, and Directors shall not refuse
the requests without proper reason.
(3) Transfers, treatments, disciplinary punishments, etc. of the staff in the Secretariat
of Audit & Supervisory Board shall be subject to approval from Audit &Supervisory Board Members whom the Audit & Supervisory Board appoints.
Evaluation of personnel shall be conducted by Audit & Supervisory Board
Members as appointed by the Audit & Supervisory Board.

7. Systems for reporting to the Audit & Supervisory Board Members(1) Audit & Supervisory Board Members may attend the Executive Committee, otherimportant meetings and various committees in addition to meetings of theBoard of Directors to ask questions and express their opinions.
(2) In additions to delivering circular resolutions and other important documents to
Audit & Supervisory Board Members, the Board of Directors, departments andthe presidents of subsidiaries shall submit necessary information and report on
the state of business and duties at the request of Audit & Supervisory Board
Members.
(3) Upon finding a fact that can cause serious damage to the Suzuki Group, theBoard of Directors shall report on the fact to the Audit & Supervisory Board
immediately.
(4) The Audit Department, directly reporting to the President, shall report on the
results of internal audits to the Audit & Supervisory Board.
(5) One of the contacts of the “Suzuki Group Risk Management Hotline” shall be
Audit & Supervisory Board Members. In addition, the state of whistleblowing
activities outside that of Audit & Supervisory Board Members shall be reported
to Audit & Supervisory Board Members on a regular basis.
(6) The Company shall not engage in disadvantageous treatment against those
who reported to Audit & Supervisory Board Members, and shall ask thesubsidiaries to treat them in the same way.

8. Matters regarding procedures for prepayment or redemption of
expenses arising from the execution of duties of Audit &Supervisory Board Members and processing of other expenses
or liabilities arising from the execution of such duties

Corporate Governance

Risks in Operations

The following is an overview of operation of the basic policies related to the systems for ensuring appropriate execution of duties in
FY2019:[Measures relating to compliance][Measures relating to risk management]- As a part of efforts to firmly establish compliance awareness- The Company has constructed a system in which issues occurring or

throughout the Company based on improper conducts regarding

recognized in any department are deliberated on promptly by the

final vehicle inspection in 2018 following the improper sampling

Corporate Governance Committee or the Executive Committee,

inspection of fuel consumption and exhaust gas in 2016, thedepending on their urgency and severity.

Company has distributed a Compliance Handbook that shows the- Since smooth communication of information within the Group is

standards of behavior related to compliance to all Directors, officers

effective for early discovery of problems, the top level ofand employees as a supplementary to the Suzuki Group Code ofmanagement is supervising the thorough application of these basic

Conduct.

rules of information communication by all Directors, officers, andFurthermore, regarding education and training, in addition to theemployees by incorporating them into lectures at various corporate

previous lessons on compliance through e-learning and for respective

events: “Immediately give reports to your manager. Immediately

levels and positions, we are enhancing our training for employees tocontact your manager. Think for yourself, then consult;” and “Observe

sufficiently understand laws and regulations related to automobile

the actual site or object to plan measures and take action.”

manufacturing, sales and service, such as the Road Transport Vehicle- The Company conducts risk management training for Directors,

Act, and conducting this training for a broader scope of staff

officers and Executive General Managers, by inviting outside experts.

including Directors, officers and employees.

In addition to compliance risk, cyber risk was also taken up as a main

- From 18 May 2017, one year after the incident regarding thetheme for the current fiscal year.

improper sampling inspection of fuel consumption and exhaust gas- Internal rules are constantly being developed in each department.

was disclosed, we set the day as “Remember 5.18”, an effort to be

The Company is working to strengthen systems for efficient andconducted every May with the aim of retaining a sense of awarenessappropriate operations in compliance with laws, regulations, etc.

against improper conducts, on which we perform a comprehensive

Also, every year, we provide opportunities to check each work

inspection by stopping all operations for one day, to ensure that we

procedure and make necessary improvements regularly.

are not violating regulatory compliance in any way. From this year,- In accordance with the Company’s “CSR Guidelines for Suppliers” to

we have expanded the scope of participation from the staff of thecomply with laws and regulations, we are working with suppliers toengineering, manufacturing, and purchase departments to all

fulfill our corporate responsibilities together, including those relating

departments of the Company.

to human rights, labor and the environment, with the principle of- Education, training, and urging posters at all worksites are somesafety and quality first in our mind.

methods being used to ensure awareness of the “Suzuki Group Risk

- As part of measures to prepare for natural disasters, the Company

Management Hotline” in an effort to discover compliance issues early

held two trainings for tsunami evacuation assuming the occurrence

and to respond appropriately. In the current fiscal year, the Companyof the Nankai Trough Megaquake. The Company also reviewed issue

established new rules that clarified procedures for whistleblowing

in our Business Continuity Plan (BCP) and made necessary revisions.

including a specific outline for whistleblower protections and the- Furthermore, in March 2020, the Company organized the “COVID-19

investigation process.

Response Headquarters” headed by the Executive General Manager- The Corporate Governance Committee engages in enhancement ofof Corporate Planning Office in order to implement measures tocompliance awareness by employees and urges caution for individual

prevent the spread of COVID-19 and develop our BCP in the event oflegal compliance throughout the Company. Furthermore, if compliance

an infection outbreak.

issues arise, the Committee conducts deliberation for each issue,

The Company will thoroughly implement health maintenanceformulates required measures, and reports the details to the Directors

programs for employees, make working arrangements (including theand the Audit & Supervisory Board Member as appropriate.

introduction of telecommuting), and encourage hygiene

スズキ内限

初版

コンプライアンス・ハンドブック

management, disinfection, and ventilation as measures to preventthe spread of COVID-19 at all domestic and overseas bases, and willtake timely and appropriate measures to enable business continuity
while paying constant attention to the status

The Company shall budget a certain amount of funds each year to pay expenses,
etc. caused by the execution of Audit & Supervisory Board Members’ duties. When
Audit & Supervisory Board Members claim an advance payment of expenses andothers related to the execution of their duties, the Company shall process the claim
without delay.

9. Other System to ensure effecting auditing by the Audit &Supervisory Board Members
Audit & Supervisory Board Members may seek advice, etc. from lawyers and otherexternal experts, if necessary, at the expense of the Company.

Distribution of the Compliance Handbook

ANNUAL REPORT 202033

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

GovernanceCorporate GovernanceDirectors, Auditors, and Officers[Measures relating to efficiency improvements in Directors’
execution of their duties]

appropriateness and efficiency of business at departments of the- To allow the Board of Directors to make decisions on vital

compliance with laws/regulations and internal rules, and the state ofmanagement issues efficiently and quickly, such issues are deliberated

management/maintenance for assets. Based on audit results, theat the Executive Committee attended by the Representative Directors

audit department provides advice and guidance for making reforms

and other concerned Directors, Managing Officers and others before

until they are complete. In addition, for subsidiaries that have an

being put to the Board of Directors. Also, in order to allow sufficientinternal audit department, the Company’s audit department checks

time for the Board of Directors to deliberate important issues related

the activities of those internal audit departments, receives reports on

to management, meetings of the Board of Directors are operated toaudit plans and results, and provides advice and guidance as needed.

Company and at domestic/overseas subsidiaries, the state of

secure ample time in schedule and materials for the meetings are
distributed in advance.
- The Company tries to clearly assign an executor to new management
issues as they arise.

[Measures related to audits by Audit & Supervisory Board
Members]- The Company has established the Secretariat of the Audit &- The Company is aiming to improve efficiency and speed in decision-

Supervisory Board, which is a full-time staff department independent

making by the Board of Directors through certain measures such as

from the chain of command of Directors, etc., to support the duties

by delegating decisions on individual matters to Directors orof Audit & Supervisory Board Members.

Managing Officers through the approval system, by receiving

Merit Rating of staff at the Secretariat of the Audit & Supervisory

monthly reports on the state of operations of each department, theBoard shall be performed by Audit & Supervisory Board Members

state of progress of each department’s plans. etc., and by holding

whom the Audit & Supervisory Board appoints, and approval frommeetings of the Executive Committee attended by the Representative

Audit & Supervisory Board Members whom the Audit & Supervisory

Directors and other concerned Directors, Managing Officers andBoard appoints shall be obtained in advance of personnel transfers,

others periodically and as the need arises to deliberate and makedecisions on vital management issues and measures quickly.

etc.
- By having Audit & Supervisory Board Members attend meetings of- The internal audit department audits the state of establishment andthe Board of Directors, the Executive Committee, corporate

operation of internal controls, which are based on these basic

governance meetings, and other meetings related to business

policies, on a regular basis and reports the results of audits to theoperations and management, the Company makes it possible for

Board of Directors.

Audit & Supervisory Board Members to verify the decision-making
process and receive any necessary reports, and express their opinions.

[Measures for ensuring appropriate execution of duties at theGroup]- The decision documents concerning the business operations of the- The Company has defined the Rules of Business Control Supervision

Board Members, and when necessary, the business and businessfor Affiliated Companies and established departments responsible

Company and its subsidiaries are provided to the Audit & Supervisory
conditions are explained as necessary.

for the management of each of its subsidiaries. Subsidiaries are- The internal audit department properly reports results of audits tomanaged and supervised to ensure regular provision of status reports

Audit & Supervisory Board Members, allowing for more efficientand reports on other matters as defined by these Rules, and toauditing to be carried out in joint collaboration between Audit &ensure the receipt of approval from the Company ahead of any
significant matters.
- Through the Suzuki Group Risk Management Hotline, the Company
strives to identify compliance issues at subsidiaries.

T o p

i

Risks in OperationscImplementation status of preventive measures related to improper conducts in final vehicle inspections
1. Determination and actions of the management team
The President made an announcement to all of the employees of Suzuki
reflecting on his lack of insight to identify and improve the actual situations
occurring at worksites and the actual issues the employees might befacing, and being unable to personally stay in close contact with theworksites, and expressing his determination to create an environment inwhich employees can feel reassured and devote themselves to their work
while complying with the relevant laws, regulations, and rules. As one
specific action of that sentiment, the President and the management teamvisit each plant, listening to the actual voices of employees on the worksite
and promoting the necessary improvements. In addition, at various internal
events, the top management takes advantage of the opportunity toreiterate messages to our employees on preventing the recurrence ofcompliance issues.
From an organizational standpoint, we have engaged in activities to clarify
the ideal format for final vehicle inspections and promote the reform of
final inspection operations by establishing both the inspection department
as an independent division separate from the production department andintroducing the Inspection Reform Committee. At the same time, we arestrengthening the audit system that provides a three-tier process for auditsof final inspection operations.
2. Raise companywide awareness and improve organizational culture
In our efforts to develop initiatives to serve as lessons on complianceawareness learned from the improper sampling inspection of fuelconsumption and exhaust gas in 2016 and the latest improper conducts
regarding final vehicle inspection, we have established a permanent exhibit
area within the head office, and we focus on activities such as providing
thorough education on these incidents to all employees, from new
employees to those in managerial positions, without exception, anddistributing a Compliance Handbook to all Directors, officers andemployees to be used for daily guidance and operational confirmation.
In addition, as part of our initiative to revitalize communication within the

Company, we have newly introduced training aimed at raising awarenessfor employees who are in the position to receive reports, contact andconsultations, and have established a system in which the President works
to ensure awareness of “Attitude to Perform Work” throughout theCompany, while managers take responsibility for understanding operations
and giving instructions, guidance, and confirmation to subordinates,
ensuring that subordinates disclose relevant facts and report, contact andconsult appropriately.
3. For more reliably correct inspections
Through efforts such as arranging counselors, collecting notes on employee
concerns, gathering opinions of leaders and supervisors, and holding
individual interviews and group meetings, we identify tasks that areconsidered difficult and problems in the workplace, and use thisinformation to make improvements in the worksite.
In addition, we have increased the number of inspectors to reduce theburden of inspections, and established dedicated inspection lines (photoleft) for the education of assistant inspectors undergoing training in orderto smoothly increase the number of inspectors. We have also improved
inspection facilities, focusing on processes that are particularly prone tomistakes. For example, we have installed equipment to automaticallyrecord inspection data that had been hand-written by the inspector. In
sideslip inspections (wheel alignment inspections: photo right), vehicletransit speed is measured with a sensor and the inspection is automaticallyinvalidated if the speed exceeds the prescribed speed. In this way, we are
increasing the reliability of inspections while reducing the burden on theinspectors.

Supervisory Board Members and the internal audit department.
- The Suzuki Group Risk Management Hotline serves as a contact
point with Audit & Supervisory Board Members for whistleblowing.
Additionally, all of the reports received for other contacts are also

- In accordance with the audit plan, through on-site auditing andreported to the Audit & Supervisory Board promptly so thatinvestigation of written documentation, etc., the Company’s internal

information regarding various issues within the Company is sharedaudit department with personnel thoroughly familiar with the various

with them.

fields of the Company’s operation periodically audits the state of- Expenses for the execution of duties of the Audit & Supervisory

establishment and operation of internal controls, including theBoard Members are independently budgeted and properly processed.

Protecting Personal Information
We fully recognize that personal information (information
regarding our customers, business partners, shareholders,investors, employees, etc.) is a valued asset that we receive fromindividuals, and it is our obligation under the law and our
accountability to society, to handle this information properly andwith care. In response to this, we establish the “Basic policy onprotection of personal information” and work hard for protectionof personal information. Details on the handling of personal
information are released on our public website: https://www.
globalsuzuki.com/cookies/index.html
We establish the in-house rules and revise them as required

34 ANNUAL REPORT 2020

Corporate Governanceaccording to revision of related laws etc. in order to handle
personal information appropriately. To familiarize our employeeswith these rules, Suzuki provides education through employee
seminars or enlightenment from the internal homepage so that
all employees thoroughly become aware of protection andappropriate handling of personal information. In addition, the“Basic policy on protection of personal information” is followed
also at member companies of the Suzuki Group to thoroughly
ensure protection of personal information. We will continuously
review and improve the personal information protection system.

ANNUAL REPORT 202035

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

GovernanceCorporate GovernanceDirectors, Auditors, and Officers

sirens are installed on the roof of the headquarters. The electric siren isdesigned to be operated with the dedicated electricity generator in case of a

Activities on Information Security
As described in the section “Protecting Personal Information”, Suzuki
prepares codes related to protection of personal information and thoserelated to information control in order to manage information useful for
the Company including those provided by other companies.
In addition, we thoroughly ensure appropriate handling of confidential
information by prescribing proper handling and leakage prevention ofconfidential information in the Suzuki Group Code of Conduct for employees.
As for information security, we promote improvement in work byintroducing the information system and network, and determine the

T o p

i

concept and rules to build, manage and operate such information
system and network in order to prevent information leakage andunauthorized access, while improving availability of information.
Servers which may cause severe influence if it stops and those that save data
important for security such as personal information are installed in a lockable
server room with seismic countermeasure taken by seismic isolators etc.
Suzuki organizes the confidential information control promotion
meeting and reinforces the information control system of the entire
Suzuki Group.

c

Suzuki obtains ISO27001 certification, the international standard for information security
In August 2020, Suzuki obtained the “ISO27001” certification, the international standard for information security management systems.
The Company will continue to promote activities regarding information security management.
[Range of certification] Suzuki Motor Corporation
Head office, Kosai Plant, Iwata Plant, Sagara Plant, Yokohama Lab., Shimokawa Proving Grounds, and Sagara Proving Grounds

Suzuki takes various measures for natural disasters including Great Earthquake along the Nankai Trough to minimize influence of damages, giving
top priority to “protecting employees’ lives” and “quickly recovering our business for our customers”. For example, we have taken various preventive
measures such as earthquake-resistant measures for buildings and facilities, fire prevention measures, establishment of the disaster action manualand Business Continuity Plan (BCP) that include establishment of the disaster response organization, and purchases of earthquake insurances.

Disaster prevention
to mitigate risk. Further, the Group is expanding its research facilities inIndia partly in order to mitigate risk concerning product development
facility for automobile in Sagara Proving Grounds. In order to enhance
performance of Disaster Prevention Headquarters, which is to beestablished upon disaster, the headquarters periodically conduct
trainings with officers and each representative of the Disaster Prevention
Headquarters attending in cooperation with consulting company
specialized in disaster prevention.
Through these initiatives, the Group will continue to enhance its
preparedness against natural disasters.

Measures against earthquakes and tsunami taken by Suzuki for local residents
A part of Suzuki’s facilities is registered as a tsunami shelter for local
residents, and they are invited to see the facilities registered as shelter once ayear. Also, we have a system for an earthquake to deploy watchmen on theroof of the headquarters, look out for the occurrence of tsunami, and sounda siren to notify residents when a tsunami is found. Manual and electric

36 ANNUAL REPORT 2020

Risks in Operations

power failure.

Measures against earthquakes and tsunami taken by Suzuki for employees
Aimed to protect the lives of our employees, Earthquake Early Warning
Systems are installed at the headquarters, each plant, andmanufacturing companies. Earthquake and tsunami evacuation drills are
repetitively conducted with all employees participating, so that when
the Earthquake Early Warning System goes off, the employees are able
to secure their safety, and at offices with risk of tsunami, safely evacuate
to places where damage from flooding is not anticipated. We have asystem to confirm safety of employees immediately when a disasteroccurs via communication equipment such as satellite telephones andradios, which are installed at each plant and sales distributors all overJapan as an emergency communication tool, and we conduct a
communication drill every month to be ready for an emergency.
In addition, since 2012, first aid trainings are conducted in all offices byretired fire fighters, and repetitive trainings are continuously carried out
so that upon large-scale disasters, our employees are able to arrest
bleeding, treat injuries, convey in stretchers, and perform CPR using

AEDs on their own. In the 8 years from 2012, a total of 5,075
employees participated in this training (as of the end of March 2020).
Furthermore, in order to confirm safety of off-duty employees, we
introduced the “safety information system” in case an earthquake ortsunami occurs. In order to confirm safety of employees and their family,
this system automatically sends “safety inquiry e-mails” to e-mailaddresses that each employee has registered and those who receive thee-mail send a reply about their own safety situation, and managers areable to confirm the situation.

Measures against fire disasters

Disaster measures by Suzuki

While the Group has been taking various measures to prevent
anticipated damage caused by Great Earthquake along the Nankai
Trough, after experiencing the Great East Japan Earthquake, it has
diversified production and research sites including overseas. Firstly, it isrelocating plants and facilities to Miyakoda district in northern part ofHamamatsu from Ryuyo region in Iwata, Shizuoka, since massive
tsunami damages are anticipated in the region. The Group decided tofound the test course of the motorcycle in the Aoya district of Tenryuku, Hamamatsu. Also, the Group has diversified its production of engine
for minivehicle, which was concentrated to Sagara Plant, to Kosai Plant

Corporate GovernanceAt the headquarters and each plant, regardless of how small the size of thefire, we conduct an initiative to find out the real cause of fire and thoroughly
carry out effective measures. All cases of fire are shared throughout theSuzuki Group in an effort to cross-functionally take measures in preventing
familiar disasters. A fire drill using fire extinguishers and fire hydrant isconducted at plants so that everyone in a worksite can perform first-aid
firefighting to minimize damage caused by fire.
Also, water discharge drills by fire engine or by small transportable pump are

performed for promoting individual disaster prevention activities by the “private
fire brigade”, a fire prevention organization consisting of employees. Above
all, the premises of headquarters, Kosai Plant, Iwata Plant, and Osuka Plant,
are certified as cooperative business entities for local fire brigades by the cityof Hamamatsu, Kosai, Iwata, and Kakegawa respectively, for their contribution
to reinforcement of local fire-fighting and disaster-prevention system etc.

Contribution to construction of storm surge barrier in the coastal zone of Hamamatsu
Suzuki contributed 500 million yen by FY2014 to “Hamamatsu Tsunami
Protection Measure Fund” that Hamamatsu city has founded forconstructing the storm surge barrier as a countermeasure for tsunami
caused by an earthquake. The Suzuki Suppliers Association organized
by Suzuki’s associated companies also decided to contribute 39.06
million yen in total over five years.
The Company also contributed 340 million yen in total to neighboringeight cities and towns for disaster measures such as earthquakes andtsunami by the end of March 2019.
In addition, a total of 500 million yen was contributed to “Hamamatsu
Sports Facility Align Fund” by FY2014 to cooperate with construction ofa sports facility which has both tsunami evacuation base and urgent
relief heliport functions in case of a disaster.

ANNUAL REPORT 202037

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Governance

Risks in Operations

Directors, Auditors, and Officers

Risks in Operations
Major risks that the management of the Company acknowledges, which may significantly affect the financial situation, management results, andcash flows of the Group include the followings.
Forward-looking statements in this section are based on our conclusions as of the end of FY2019.

1. Risk relating to markets[Change in economic situations, demand fluctuation in themarkets]
The long term economic slowdown, world economic
deterioration and financial crisis, and the reduced buying
motivation of the consumers may lead to a substantially reduced
demand for the products of the Group including automobiles,
motorcycles and outboard motors. They may also adversely
affect the performance and financial conditions of the Group.
In addition, we conduct businesses around the world, and ourdependency on the overseas manufacturing plants especially inthe emerging countries of the Asian regions has been increasingover the years. The unexpected situation in these markets suchas the rapid change in the economic situations may adversely
affect the performance and financial conditions of the Group.
Further, unexpected change or new application of tax systems,
financial policies and others in each country may also adversely
affect the performance and financial conditions of the Group.
In the Indian market, which accounts for approximately one-thirdof consolidated net sales of the Group, the market as a whole
had been stagnating owing to such factors as reluctance to loans
and increase in insurance price. In addition, increase in sales
price of products associated with the reinforcement ofenvironmental restriction has also become a factor, and therecovery of the market has been slow.
As a result, the Group’s sales in India in FY2019 largely decreased
by 18% to 1,414,000 units year-on-year, despite its continuous
efforts in arousing the market such as by launching new models(S-PRESSO, the mini SUV and XL6, the mid-size SUV) and sharing
the benefits of corporate tax reduction to customers in the formof reduction in sales price of products, which was conductedduring the festive season.
[Severer competitions with other companies]
We are facing competitions with rival companies in every global
market where we conduct our businesses. As the automobiles
and motorcycles industries in the world are globalized further,
competitions may get harder. Competitions with othercompanies include various aspects such as product quality, safety,
price, environmental performance, as well as efficiency of
product development and manufacturing system, establishmentof sales and service systems and sales finance.
We will make further efforts for maintaining and improving ourcompetitive edges, but there may be risks that impede ourcompetitive advantages.

2. Risk relating to business[New product development and launching abilities]
It is very important for an automobile and motorcycle
manufacturer to grasp correctly the customer needs andenvironment surrounding cars and to develop and launch to themarket new attractive products that satisfy the customers in atimely manner. It has become more important than ever to grasp
the customer needs that rapidly change and environment
surrounding cars, such as the reduced demands caused bydomestic and overseas economic slowdown, the increased
interest in the environmental performance and the rapid spreadof cars loaded with advanced technology.
Besides, launching of new products will require abilities of
specific product development, development capability ofadvanced technology toward the future, and further abilities ofcontinually manufacture products, in addition to appropriately

38 ANNUAL REPORT 2020

understanding customer needs and environment surrounding
cars.
However, even if we are able to grasp correctly the customer
needs and environment surrounding cars, we may not be able todevelop new products matching the customer needs in a timely
manner on account of technical abilities, procurement of parts,
production capabilities, securities of superior human resourcesand other factors. If we are unable to launch products matching
the customer needs to the market in a timely manner, the sales
share and sales may be reduced, which may adversely affect theperformance and financial conditions of the Group.
The Group secures approximately 50% share in the passenger
vehicle market in India. However, in the recent years, thepopularity for SUVs is increasing in India as well, and the trend is
especially expanding in segments which are bigger than our

specialized small car segments. Although the Company set up a
premium sales channel NEXA to meet our customers’ shift toupper grade models, there is a need for reinforcing our lineup of
mid-sized cars in the future.
We would like to secure the 50% share even in 2030, and torealize this, we need not only to fulfil the small car lineup but
also expand the mid-sized car lineup as well. We will further
reinforce our development and introduce such models.
[Change in product prices and purchase prices, dependence
on specific suppliers]
Various factors including insufficient supply or price rise of
specific parts and raw materials, unstable economic conditions,revisions of import regulations and harder price competition may
rapidly change the product prices and purchase prices of theGroup. There is no guarantee that such rapid price change does
not last long or such change does not occur in the markets
where there have not been such changes so far. Rapid changes
in product prices and purchase prices may adversely affect theperformance and financial positions of the Group in any market
where we conduct our businesses.
In addition, the procurement of some of the parts has been
limited to specific suppliers on account of technical abilities,
quality, and price competitiveness. If we are unable to obtain theparts continuously and stably on account of unforeseeable
accidents of the suppliers, it may adversely affect theperformance and financial conditions of the Group.
[Business development in various countries in the world]
We have been conducting our businesses in various countries in
the world, and in some of the countries, we conduct joint
ventures with local companies in accordance with local laws orother requirements. These businesses are restricted by various
legal and other regulations in each country (including thoserelated to tax, tariff, overseas investment and fund transfer tothe home country). Any changes to such regulations, ormanagement policies or management environment of the joint
venture partners may adversely affect the performance andfinancial conditions of the Group.
[Fluctuations of exchange rates and interest rates]
We export automobiles, motorcycles, outboard motors andrelated parts to various countries in the world from Japan. In
addition, we export those products and parts from the overseas
manufacturing plants to multiple other countries. The ratio of
the overseas sales has reached 70 percent of consolidated sales
for the current consolidated fiscal year. As the Group depends
heavily on the overseas manufacturing plants located mainly inemerging countries, it is susceptible to fluctuations in the foreign
currencies. Also, since the Group procures a major part of fundin Japan where interest rates continue to be low, it is susceptible
to changes in the interest rates.

Corporate Governance

Risks in Operations

We take hedging measures such as forward exchange contracts
and decentralization of production sites to optimize theproduction system globally to reduce the risks of exchange rates
and interest rates fluctuations, but it is impossible to hedge every
risk. The currencies appreciation in main production countries
against other currencies may adversely affect the performanceand financial conditions of the Group. On the other hand, bytransferring production sites to other countries, it may result inopportunity losses that the Group can no longer benefit fromforeign exchange gain in export even when the currency of its
local country weakens.
Further, rapid increase of interest rates in Japan may adversely
affect the performance and financial conditions of the Group.
The specific amount of foreign exchange loss for FY2019 were
¥96.8 billion for net sales and ¥29.7 billion for operating
income.
[Government regulations]
Various legal regulations are applied to the automobile,
motorcycle and outboard motor industries in relation to theemission level of emission gas, mileage, noises, safety andcontaminated material emission level from the manufacturing
plants. These regulations may be revised, in many cases
strengthened. Increase in expenses to comply with theseregulations may adversely affect the performance and financial
situation of the Group.
In addition, many governments determine the imposition oftariffs, price control regulations and exchange control
regulations. The Group is paying expenses to comply with theseregulations and will expect to continue bearing them. We may
pay more expenses depending on the establishment of new laws
or changes of existing laws. Further, unexpected changes or new
application of tax systems and economic measures of eachcountry may adversely affect the performance and financial
conditions of the Group.
Specifically, CO2 regulations in the EU are being strengthened,
and it may lead to a new burden of expenses. The Group is
working on development and introduction of products with less
CO2 emissions to mitigate the burden.
In India, where air pollution is a social issue, the new emission
regulation BS6 was introduced from April 2020. Although sales
were impacted owing to increase in cost and sales price of
products due to expenses to meet the regulation, the Company
proactively met the regulation by eventually launching BS6
compliant models from one year ahead of the regulation. By
proactively meeting the risk of regulation reinforcement, we
believe that the Company was able to change that risk into an
opportunity to appeal its environmental consciousness.

ANNUAL REPORT 202039

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Governance

Risks in Operations[Quality assurance]
We place the top priority on the product safety and make efforts
to establish the quality assurance system from development tosales. We buy insurance for the product liability, but there arerisks not covered by insurance. The occurrence of large expenses
for a large-scale recall to ensure safety of the customers may
adversely affect the performance and financial conditions of theGroup.
The quality-related expenses in FY2019 had a large impact on
performance, which accounted for 1.4% of the Group’s
consolidated net sales.
The Group is striving to provide development, production,
inspection, and aftersales services of high-quality products thatthe customers can use with ease, by placing safety and ease ofcustomers as the top priority. By precisely capturing the quality
customers need, each department will continue to be qualityconscious and pour in all efforts so that customers can continue
using our products with ease.
[Alliance with other companies]
We conduct various alliance activities with automobile
manufacturer around the world and other companies such as forresearch and development, manufacturing, sales and finance,
but factors that cannot be controlled by the Group such as
situations inherent to the alliance partners may adversely affectthe performance and financial conditions of the Group.
[Dependency on information technology]
We create, process and stock information in the form ofelectronic data in all areas of the business activities such as
design and development, production, marketing and accounting.
The Group’s products are also equipped with a variety ofelectronic control systems, which control vehicles and mounted
equipment. While safety measures have been taken on the said
items, infrastructure failure such as power shutoff and attacks bycomputer hacker and viruses may occur. If the Group’s operation
is interrupted, and data is destroyed or lost, and leakage ofconfidential information takes place, it may adversely affect theperformance and financial conditions of the Group.
[Leakage of information]
We have adopted a structure to prevent leakage of personal
information of inside and outside of company and confidential
information related to the Group’s management, operation andtechnology, etc. But if such information is leaked or used without
due authorization attributable to unexpected circumstances, theGroup may be subject to legal demand, lawsuit, indemnity
liability and obligation to pay a fine, and this may adversely
affect the performance and financial conditions of the Group.
[Compliance to laws and regulations]
We are undertaking a compliance system to prevent violation of

40 ANNUAL REPORT 2020

Directors, Auditors, and Officers

laws and regulations and respond quickly to various issues
related to compliance. Such system includes establishment of the
Suzuki Group Code of Conduct for all officers and employees of
the Group to healthily conduct their operation, establishment of
the Corporate Govenance Committee, compliance to laws andregulations related to each operation, approval and decision
procedure, maintenance of regulations and manuals in
operations, implementation of compliance trainings and othertrainings related to individual laws and regulations, andestablishment of whistleblowing system (Suzuki Group Risk
Management Hotline). Nevertheless, if we detect a fact ofviolation of laws or inappropriate response to compliance issues
due to unexpected circumstances, the Group’s social credibility
may be affected seriously, which may adversely affect theperformance and financial conditions of the Group.
With respect to the large recall announced in April 2019 which
was conducted in response to the improper final inspection, thecause of this issue was improper conducts, and there were
problems in the compliance system of the Company. We
conducted measures such as reinforcing management of final
inspection process and inspection operation, maintaining
regulations, collecting opinions from the workers, reducing loadon inspectors through increasing the number of inspectors, andimproving inspection facilities. We will continue the initiatives
toward further improvement of final inspection operations while
making efforts for company-wide innovation of consciousness
and improvement of corporate climate for thorough complianceto laws and regulations led by the management.

unexpected accident such as at the nuclear power plants.
Especially, the Group’s major facilities including head office, R&D
sites and major manufacturing plants are concentrated in
Shizuoka where occurrence of periodic massive earthquakes ishighly probable.
We have taken various preventive measurements such as quakeresistant measures for buildings and facilities, fire preventive
measures, establishment of BCP (Business Continuity Plan),purchases of earthquake insurances and others to minimize theinfluences of damage by natural disasters such as Tokai and
Tonankai Earthquake. But if the size of the disasters exceeds the
anticipation, it may adversely affect the performance andfinancial condition of the Group largely.
We also conduct businesses around the world and are exposed
to number of risks relating to our overseas operations. Theserisks around the world are natural disasters, epidemics, wars,
terrorism, strikes, and various matters attributable to unstable
political and social situation and difficulties, etc. These
unexpected events may delay or suspend the purchase of raw
materials and parts, manufacturing, sales of products, andprovision of logistics and services. If such delay or suspension

Corporate Governance

Risks in Operations

caused by any of these factors occur or prolong, it may adversely
affect the performance and financial conditions of the Group.
The spread of the new coronavirus pandemic became a factor of
decrease in the operating income for FY2019 by ¥12.8 billion. It
may prolong to largely affect the performance and financial
situation of the Group, and its outlook for the size and the endof the pandemic is still unclear. Therefore, we are currently
unable to calculate its effect on the performance of the Group.
The Group is taking measures toward the pandemic such as
banning business trips and meetings, and having web
conferences and conference calls as their altrenatives. Other
safety measures include working at home for employees working
at the Tokyo Branch and the Yokohama Lab., and introducing
time shift in attendace for employees working at theheadquarters. Working at home is also promoted in the overseas
and other measures are taking properly according to thesituation of each country.
Further, there are various risks other than those mentioned
above, and what have been stated in this section does not
represent all the risks of the Group.

[Protection of intellectual property]
We have stocked intellectual property such as technology andknowhow to distinguish its products with those of competitors,
and have taken measures to protect such property and toprevent infringement of intellectual property rights by a third
party. Nonetheless, if the Group’s intellectual property is
infringed unlawfully, or if the Group is pointed out by a third
party to have infringed intellectual property rights and faces
lawsuit or asked to terminate manufacturing and marketing of
its products and to pay indemnity, it may adversely affect theperformance and financial conditions of the Group.
[Legal proceedings]
We may become a party to lawsuits and other legal proceedingsin the course of our business activities. In the case where any
judgments disadvantageous to us are made in such legal
proceedings, it may adversely affect the performance andfinancial conditions of the Group.
[Influences of natural disasters, epidemics, wars, terrorism
and strikes, etc.]
In Japan, we are exposed to a variety of risks such as natural
disasters including earthquake, typhoon and flood and

ANNUAL REPORT 202041

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Environmental Initiatives

Environment[Air conservation]

Environmental Vision 2050 and Milestone 2030
With regard to four significant environmental themes (Mitigation of climate change, Air conservation, Water resource conservation,
and Resource circulation), the Group set the Environmental Vision 2050 as a challenging goal to be tackled toward 2050, andMilestone 2030 as a milestone toward realizing the goal.

Suzuki has been promoting efforts for air conservation such as by introducing low
emission cars to meet the requests of each country. Because Suzuki has its mainmarkets in emerging countries including India and Southeast Asia, we would like tocontribute more in air conservation. For example, by promoting our efforts for inhouse generation and procurement of electricity that derive from renewable[Mitigation of climate change]
In the recent years, abnormal climates are frequently occurring, which are considered to be caused by global warming. In order to suppress such impact of climate change,
the Paris Agreement was adopted. The Paris Agreement aims for net zero emission of greenhouse gas in the second half of this century, in order to suppress increase inglobal average temperature to less than 2°C compared to pre-industrial revolution.
In line with the philosophy of “Smaller, fewer, lighter, shorter, and neater”, Suzuki has been continuously making products that emit less CO2 while also emitting less CO2
upon making them. Going forward, Suzuki will be conscious of a challenge that we must reduce CO2 in a higher level and promote our efforts toward achieving the 2°C
target by setting climate science based reduction targets.

[Environmental Vision 2050]
Reduce CO2 emitted from new automobiles by 90%
in Well-to-Wheel base compared to FY2010 by 2050
[Milestone 2030]

CO2 emission

100

SuzukiaverageBusiness Partners

CSR Policy

energies, we will contribute not only in global reduction of CO2 emission, but also
in conserving air environment of areas that Suzuki expands it business*. Also, withregard to products, in addition to introducing powertrain that suit the situation ofenergy infrastructure in each market, we will promote reduction of volatile organic
compounds (VOC) that are emitted during the production process, etc.

Targets for conserving air environment[Environmental Vision 2050]
Minimize air-polluting substances emitted from business activities and products by 2050
[Milestone 2030]
By 2030: - Reduce use of fossil fuel in business activities and expand use of renewable energies- Contribute in improving air-pollution in each country/region by promoting development of clean products- Reduce volatile organic compounds (VOC) from manufacturing and products[Water resource conservation]

Overallaverage

Human Resources*Sulfur oxide and nitrogen oxide emitted upon burning fossil fuel are considered to be one of the causes of air pollution. Electricity made through burning fossil fuel emit air-polluting substances during
the generation stage. Under such background, air pollution in emerging countries that are highly dependent on thermal generation are becoming serious.

Targets for mitigating climate change<CO2 emitted from products>

Product Quality/Product Safety

By bringing out the environmental advantages of small cars, Suzuki will aim
toward the 2050 CO2 level, which should be followed by all passenger cars.

Water resource is the root of all lives while at the same time, it is the base of
economic activities for the humanity.
However, fresh water that can be used by the humanity is limited to only 0.01% ofwater on earth. Also, due to the recent climate changes and the population growth,
it is forecasted that supply and demand of water resource will run out in the future.

Especially in Suzuki’s main markets of India and Southeast Asia, due to rapid
industrialization, overuse and contamination of water are appearing.
Taking such regionality into concern, Suzuki will evaluate water risks of each baseand supplier, and promote management of water resources depending on the levelof risks. We will also promote thorough reduction of water usage and purificationof water discharge toward sustainable use of limited water resources.

Base line of Suzuki (compared to 2010)78*

Targets for efficient use of water resource[Environmental Vision 2050]

Reduce CO2 emitted from new automobiles by 40%
in Well-to-Wheel base compared to FY2010 by 2030

Realize use of sustainable water resources through minimizing load on water environment by 2050
[Milestone 2030]*Well-to-Wheel: A method in considering CO2 emitted from excavating andrefining fuel as well as in generating electricity, in addition to CO2 directly emitted

By 2030: - Implement reduction of water withdrawal and purification of discharged water at all manufacturing sites
through specifying water risks surrounding Suzuki

from the tailpipe of vehicles upon driving.
*Based on Suzuki research on relative value with CO2 emission of general passenger cars as 100.

[Resource circulation]<CO2 emitted from business activities>[Environmental Vision 2050]
Reduce CO2 from business activities by 80% in baseunit per sales unit compared to FY2016 by 2050
[Milestone 2030]
Reduce CO2 from business activities by 45% in baseunit per sales unit compared to FY2016 by 2030

CO2 emission per
sales unit

Base line of Suzuki (compared to 2016)

Along with rising global population and economic growth in emerging countries,
consumption of natural resources is increasing globally. If such situation continues,
there is a possibility that resource depletion and environmental contamination due
to increased wastes from heavy consumption might become serious. Especially,
there are strong worries for future resource depletion of useful resources includingrare metals used on secondary (rechargeable) batteries for propulsion of electricvehicles. Circulation use of such resources is requested. Also, in regions withinsufficient establishment of structures for treatment of end-of-life vehicles, they
may lead to illegal dumping and improper treatment of vehicles and parts.
Therefore, there are worries for various issues including environmental
contamination and health damage due to leakage of hazardous materials.
Taking such situation into concern, Suzuki will not only make efforts to makesystems for its own vehicles, but for all vehicles for safe collection and treatment of
renewable resources from end-of-life vehicles without putting load on theenvironment.

Targets for realizing circulatory society[Environmental Vision 2050]
Promote reduction, recycle, and proper treatment of wastes from manufacturing
activities and products through globally expanding recycling technologies and systems developed in Japan by 2050
[Milestone 2030]
By 2030: - Globally expand automobile recycling system- Promote recycling, rebuilding, and reusing of secondary (rechargeable) batteries used for propulsion ofelectric vehicles- Mitigate waste discharge amount at global manufacturing sites- Reduce plastic packaging materials

42 ANNUAL REPORT 2020

ANNUAL REPORT 202043

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Environmental Initiatives

Environment

Upon establishing the Suzuki Environmental Vision 2050
Materiality assessment- Mitigation of climate change- Air conservation- Water resource conservation

Social impact- Resource circulation

Significance for Suzuki’s business activities

Consideration process

CSR Policy

We believe that our most important task is to seriously recognize effects to environment generated from our business operations,develop products that carefully consider environment and promote business operations that reduce environmental effects.
To accomplish this, as a company that reached its 100th year in 2020 since its foundation, Suzuki is tackling as Team Suzuki including allgroup companies in Japan and overseas, in order for the Company to continue contributing to the society and become sustainable company
for the next 100 years, following the 4 themes listed in the Suzuki Environmental Plan 2020: Control of global warming; Promotion ofenvironmental conservation; Promotion of 3Rs (Reduce, Reuse and Recycle); and Reinforcement of environmental management.
The details of the Suzuki Environmental Plan 2020 are available in the Suzuki CSR & Environmental Report. The report features ESG(Environment, Social, and Governance) initiatives and data receiving increased attention from stakeholders, including the environment,
human rights, labor, and compliance.

Reduction in amount of CO2 emitted
Efforts for climate change

Exchange of opinions with the management
Specifying key issues (materiality)

Problems with global environment are the big theme for sustainable development of human, and Suzuki believes that we must copewith these problems as a global enterprise. In particular, we must work on global warming as an important theme.
For this reason, Suzuki is tackling for reduction of greenhouse gas by setting CO2 reduction goals from products and their production.
[Efforts for products]

Discussion at the Environmental Committee

Suzuki works toward manufacture of eco-friendly products. We promote reduction of CO2 emissions by promoting downsizing, weight reduction, improvement in
combustion efficiency, and reduction in resistance for all products.
With respect to introduction of next-generation technology, in vehicle sales, hybrid vehicles accounted for 17.5% of units sold globally.

Sales units of models equipped with hybrid system (Thousand units)

Management approval
Environmental vision determined[Overall image of Suzuki’s environmental strategy]

Back casting
Back casting

Forecasting
Environmental Plan
2025
Environmental Plan
2020
(next plan)

Milestone
2030

FY2015Global automobile sales units

FY2016
Global automobile sales units

FY2017
Global automobile sales units

Of whichhybrids

Hybridratio

Of whichhybrids

Hybridratio

Hybridratio

Of whichhybrids

Hybridratio

FY2019Global automobile sales units
Of whichhybrids

Hybrid
ratio
51.7%

630

202

32.1%

639

287

44.9%

668

350

52.4%

725

382

52.7%

672

348

India

1,305

46

3.5%

1,445

85

5.9%

1,654

85

5.2%

1,754

127

7.2%

1,436

110

7.7%

Others

926

1

0.1%

835

17

2.0%

902

26

2.9%

848

29

3.5%

744

42

5.7%

Total

2,861

249

8.7%

2,918

389

13.3%

3,224

461

14.3%

3,327

539

16.2%

2,852

500

17.5%

Environmental
Vision2050

Others13.3%

Ratio of hybrids in global sales

India

389

Japan

8.7%

Announcement of support for TCFDIn April 2020, we announced our support for the final report disclosed by the Task
Force on Climate-related Financial Disclosures (TCFD) which was established by the
Financial Stability Board. In line with the recommendations of TCFD, we will work toenhance disclosure regarding climate change.

Of whichhybrids

FY2018Global automobile sales unitsJapan(current plan)

44 ANNUAL REPORT 2020

Business Partners

Suzuki CSR & Environmental Reporthttps://www.globalsuzuki.com/corporate/environmental/report/

Evaluation of business impact

The Group placed Milestone 2030 by back casting from the Environmental Vision
2050, which was established as our ideal appearance in the future.
The path toward the Milestone 2030 will be established every 5 years as the Suzuki
Environmental Plan. The plans will include detailed action plans, which theCompany will promote.

Human Resources

Suzuki Environmental Plan 2020

[Establishment process]1. Assessment of Suzuki’s current environmental efforts (specifying materiality)- Under the Suzuki Global Environment Charter, which sets Suzuki’s philosophy andbasic policy toward the environment, Suzuki aims to contribute to the society andbecome a company loved and trusted throughout the world, and established theSuzuki Environmental Plan 2020. The Group is tackling together for environmental
conservation.
- In 2019, in order to enhance our contribution to the society, we specified the key
issues (materiality) of these initiatives from two aspects: significance for the
stakeholders such as customers and investors (social impact) and significance for
the Suzuki Group.
- Upon specifying the key issues, we reported to the management and exchanged
opinions, thereby confirming the issues to be tackled by throughout the Group.
2. Establishment of the Suzuki Environmental Vision 2050
- The specified key issues (materiality) were discussed many times at theEnvironmental Committee participated by the management, taking into concern
the impact on our business, trends in environmental policies worldwide, and midto long-term requests from the stakeholders. Consequently, environmental issues
that should be tackled by Suzuki toward 2050 were focused into four areas:
mitigation of climate change, air conservation, water resource conservation, andresource circulation.
- Finally, the details of these four areas were approved by the management andthen put together in the Suzuki Environmental Vision 2050.

Product Quality/Product Safety

1 249
46

17
85

202

287

FY2015FY2016

202

14.3%
26
85

461

350

16.2%
539
29
127

17.5%

500
42
110

382

348

*Hybrids include Mild Hybrid, S-Ene Charge, and SHVS.
*Part of hybrids units in Others are units exported from Japan and India.

FY2017FY2018FY2019ANNUAL REPORT 202045

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Product Quality/Product Safety

Environment

Efforts for Product Quality

Product Quality/Product Safety

Human Resources

Business Partners

CSR Policy

Efforts for safety

Suzuki Group is making efforts to give “the first priority to quality” as the most critical matter for “strengthening of manufacturing”.
We are aiming at becoming a trusted brand by giving top priority to the safety and security of our customers, developing andmanufacturing quality products that our customers can use with security, and quickly responding to feedback from our customers
during after-sales services.

Suzuki reinforces “efforts for safety technologies” and actively improves the safety so that every single person including pedestrian andbicycle, motorcycle, and automobile drivers can live in a safe mobility society with each other.

Suzuki Safety Support

Efforts for traffic safety

Suzuki’s quality policy
Suzuki Safety Support was born from our wish to have everyone
enjoy their cars safely.
In order to prevent accident and secure customer’s safety in caseIn order to have our products used by our customers safely andsecurely, all departments involved in the entire process, including
product development and design, manufacturing at production
plants, sales to customers at markets, and the provision of aftersales services, are promoting actions cross-functionally to
improve the quality from the viewpoint of customers.

Suzuki’s quality policy
Develop products of superior value by focusing on the customer- Top priority to safety and security of our customers.

of an accident, we will make our utmost effort to minimise evennear-miss accidents through various
driving-support technologies.

- Quick response to customers’ feedback.

Suzuki Group not only makes efforts in technologies but also inawareness of traffic safety as well. For example, in overseas,
Maruti Suzuki India makes efforts in various projects in executionof traffic laws and awareness of traffic safety. Such projects
include Automated Driving Test Centres, introduction of traffic
safety management system, management of Institutes of Driving
Training and Research, and traffic safety education.

Suzuki Safety Support Technologies
Development quality

Manufacturing quality

Market quality

Establishment of trusted brand

Collision-mitigation braking
Dual Sensor Brake Support
Dual Camera Brake Support
Radar Brake Support II
Back-up Brake Support
False Start Prevention Function
Lane Departure Prevention Function
Lane Departure Warning Function

Adaptive Cruise Control
Road Sign Recognition Function
Head-up Display
High Beam Assist
Preceding Car Departure Announcing Function
Blind Spot Monitor
Rear Cross Traffic Alert
Camera for all-direction monitor*As of October 2020. For specific model and variant equipped with these technologies, please refer to each model’s catalogue.

Quality management system

T o pSuzuki Group has adopted the international standard ISO9001 as its quality-management system. In addition to 5 plants in Japan,
major overseas plants in India, Indonesia, Thailand, Hungary, etc., have also adopted the ISO9001. Suzuki Manufacturing of America
Corp., which is a subsidiary for production of ATV in the USA, also acquired the certificate in FY2019.
As a result, the ratio of production at plants certified by ISO9001 against the entire global production of automobiles in the Suzuki
Group in FY2019 (2,967,000 vehicles) reached approximately 99.6%. We will promote quality management in the entire Suzuki
Group, and continue to make efforts to realize quality improvement.
Acquisition of ISO9001
Country

Plant

Country

1

Suzuki Motor Corporation: Kosai Plant

10

2

Osuka Plant

11

Sagara Plant

12

Iwata Plant

13

3

Japan

4
5

Hamamatsu Plant

6
7

India

8
9

Pakistan

46 ANNUAL REPORT 2020

Indonesia
Thailand
Vietnamc

Started offering aftersales sudden start prevention system, Misstep Acceleration Prevention System
Suzuki started offering aftersales sudden start prevention system called the Misstep Acceleration Prevention System from August 2020. The system is offered asaftersales parts for the WagonR*1, and the Company plans to expand the lineup.
The Misstep Acceleration Prevention System can be installed onto a vehicle that the driver currently uses*2. The system alerts with lamp and buzzer if it detects
an obstacle in front or behind upon start. If it detects that the accelerator pedal is stepped hard under such condition, it suppresses engine output.
Suzuki is making efforts in popularizing the Suzuki Safety Support preventive safety technologies toward the future with no accidents. The Misstep Acceleration
Prevention System offers peace of mind to customers who are favoring the vehicle for a long time.

Plant[Function]

PT. Suzuki Indomobil Motor

Alerting upon detection of obstacle in front or

Suzuki Motor (Thailand) Co., Ltd.

behind, and suppressing acceleration
Suppressing acceleration when backing-up

Thai Suzuki Motor Co., Ltd.

with no obstacle behind

Vietnam Suzuki Corp.

14

Hungary

Magyar Suzuki Corporation

Maruti Suzuki India Limited

15

USA

Suzuki Manufacturing of America Corp.

Suzuki Motor Gujarat Private Limited

16

Colombia

Suzuki Motor de Colombia S.A.

Suzuki Motorcycle India Private Limited

17

Pak Suzuki Motor Co., Ltd.

18

China

i

[Specification]
Ultrasonic sensor (front)*Sensor color is only black.

Ultrasonic sensor (rear)

Display*Display is lit for explanatory purpose.

Ultrasonic sensors (2 each in front and rear)
Display size: Width 77mmx Length 44mm xHeight 35mm

Jinan Qingqi Suzuki Motorcycle Co., Ltd.
Changzhou Haojue Suzuki Motorcycle Co., Ltd.

*1 For FX variant sold from September 2012 to July 2014, excludes model installed with Radar Brake Support, 5MT, 20th Anniversary Model, lifting seat type vehicle, and Stingray.
*2 The system may not be installed under certain conditions, and the dealer for installing the system is limited. Please consult with your nearest distributor or dealer.

ANNUAL REPORT 202047

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Human Resources

Environment

Human Resources

Product Quality/Product Safety

Human Resources

Business Partners

CSR Policy

Secure and Comfortable Working Environment

Under the mission statement “Develop products of superior value by focusing on the customer”, Suzuki takes actions to accomplish themission that our every single employee thinks and acts by themselves and provides customers with products that will enrich their life.
We give the first priority to assurance of stable employment. Also, we try to improve work conditions in order to build a healthy andbetter working environment. Employees mutually help each other and try to be a person who can contribute to the society with thespirit of “Team Suzuki”, and the management and employees band together and build a refreshing and innovative company.
In addition, we strive to create systems and environments, focusing on the following points, in order to cultivate the corporate climatethat employees go for a big future with motivation and ambition.

Diversity (varieties of human resources)
The Suzuki Group Code of Conduct, which applies all those working in the Suzuki Group, addresses to make a workplace that does not haveany discrimination or harassment due to gender, age, nationality, race, religion, etc. Variety of human resources regardless of gender, age andnationalitiy are active in various departments.
We will maintain and improve our working environment so that a wide variety of human resources can work actively.

Actions to promote participation by women
In order to further realize a society where women can demonstrate their abilities and work successfully, from FY2020, the Company will raise

Create a safe and healthy workplace for our employees
Create a system that fairly evaluates and supports human resources who challenge higher goal2025” as well as to “improve rate of paid holiday taken by all employees including managers by 10% compared to FY2018 in 2025”.
Specifically, the Company will systematically conduct initiative including “education for promoting understanding of work and family

Create good and stable relationships between the employer and employees

balancing for young employees and employees with job titles”, “gathering of employees taking childcare leave”, “opening website toprovide information regarding work and family balancing”, and “clarifying the situation of paid holiday taken”.

Efforts for safety, health and traffic safety
Suzuki is promoting the safety and health management activities through our basic safety concept.

Make safety as first priority. (Safety First)
The basis of corporate activities is “people”.
The first priority must be always given to safety that protects “people”.

Basic Safety Concept“increase in number of female employees with job titles” and “promotion to take paid holiday” for building better working environment as ourissues. Based on these issues, the Company will target to “triple the number of female employees with job titles compared to FY2015 in

All accidents are preventable.
Managers must lead the workplace, having the strong belief “all labor accidents can be prevented”.

Initiatives for shortening working hours
Initiatives are made to shorten working hours by introducing various systems so not to have our employees to become ill due to long
working hours.
• Strict management of overtime working hours based on total working hours• Introduction of flexible time system that bans early and late working hours• Introduction of interval system between working hours to secure continuous resting time
• Setting a day with no overtime work aimed for work and life balancing

Safety is everyone’s responsibility.
While the corporate conducts what they should do, every single person must take responsible actions to protect themselves.
Let’s make the climate where everyone follows the rules and mutually warns each other in the workplace.

Employee relations
Through mutual trust, we have developed a good relationship with the Suzuki Labor Union, which represents Suzuki employees.
Among the labor union’s goals are stable employment and maintaining and improving work conditions. In order to meet these

Safety and health control system

Risk assessment activities

The “Central Safety and Health Committee” to which
representatives from offices and labor unions attend is held twicea year to determine basic polices related to corporate “worksafety”, “labor health” and “traffic safety”.
In addition, the Central Safety and Health Committee conducts
the central safety patrol once a year to raise safety awarenesswithin the company through crossfunctional safety activities byinter-department crosschecks. The Departmental Safety and
Health Committee is established at each office and constantly
conducts activities related to safety and health based on thepolicy of the Central Safety and Health Committee.

Suzuki implements “risk assessment” mainly for prevention ofrisks as safety prefetch activities. Through these activities, we try
to improve safety by identifying potential risks in operations andpromoting countermeasures to prevent them. We haveintroduced risk assessment for the close call cases in 2001 andhave been working on risk assessment in regular operations
since 2013.
Same initiatives for safety and health control as well as risk
assessment are also conducted overseas.

Trends in accident frequency rate
Average of manufacturing industry
Average of transportation equipment manufacturing industry
Suzuki

1.40
1.20

1.06

1.15

1.20

1.20

0.54

0.50

0.80
0.60
0.40
0.20

0.41
0.09

0.39
0.15

0.43
0.21

0.26
0.03

0
2015

48 ANNUAL REPORT 2020

2016

2017

2018

2019

Safety education at overseas plant(FY)

Employee communication
We arrange frequent labor-management consultations to ensure that employee ideas are reflected in all of our departments, such as
research and development, design, manufacturing, sales, etc.
In addition to discussing requirements (salaries, bonuses, labor hours, etc.) we hold monthly discussions that regularly cover a wide
range of issues such as management policies, production planning,
Frequency
working hours, welfare, safety and health, etc., and earnestly exchange
Central Labor-Management Consultation
Monthlyideas on what Suzuki and the labor union can do to deliver quality
District Labor-Management Consultation
Monthly
products to the customer.

Building a stable relationship with the labor union in the Suzuki Group

1.02

1.00

conditions, stable development of the company is required. When negotiating salaries, bonuses, labor hours, etc. as distributions of
the results of corporate activities, we do share the same basic vector, which aims for stable development of the company while having
discussions from different standpoints: the company and labor union.
The number of the labor union members is 16,499 as of the end of FY2019, and the unionization rate of full-time employees(excluding managers and non-union members defined in the labor agreement) is 100%.

The Suzuki Group has 130 member companies (manufacturers, non-manufacturers, sales companies) at home and abroad. It is ourhope that those 130 member companies are individually trusted by the local residents, society, and customers.
At Suzuki, seminars are given to union officials and human resource management personnel of overseas companies to make themunderstand the importance of cooperative relationship and smooth communication between labor and management, as well as theneed for a fair and equal personnel management system, etc. We also work with the labor union to promote global personnel
exchanges both domestically and abroad, and we strive to establish a work climate which allows our 68,000 employees in 130
companies to enjoy working with a highly creative and stable labor-management relationship.
ANNUAL REPORT 2020

49

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Human Resources

Environment

Initiatives by Maruti Suzuki India Limited

Human Resources

Business Partners

CSR Policy

Self-assessment System

At Maruti Suzuki India Limited, maintaining harmonious industrial relations to facilitate smooth plant operations and achieve competitive
business goals, is the pivotal aspect of human resources business strategy of the plant.
By recognizing the above, establishing good relations with unions across all three plants (Gurgaon, Manesar, and Manesar Powertrain) andmaking unions aware of business challenges and accordingly taking them together onboard in decisions pertaining to employee welfare
policies, has also been an essential aspect of industrial relations at the company. Based on the integral philosophy of connection between
people, the company has designed its employee engagement framework wherein proactive communication with all stakeholders andmaking them more skillful in their work has been the core focus area.
The company is making efforts in continuously strengthening mutual labor-management communication by holding periodical meetings
with union, Managing Director, plant managers, human resources managers and other shop floor employees.
Consolidating its strong connection between people and employee engagement ambit, the company organized various welfare andemployee engagement activities jointly with unions on cultural, academic and sports front so as to get connected with employees and theirfamilies resulting in enhanced motivation andMeeting
Frequency
commitment of employees. Accordingly, company
Managing Director meeting with department heads & above
Quarterlyorganizes plant tour for the employee’s families, sports
tournaments, family day, upgrading the existing skills of
associates (Higher Education Scheme), career counselingfor the children of employees and various other initiatives
where all employees participate.

Product Quality/Product Safety

Managing Director meeting with unions

Top management (executive officers, plant managers, humanresources managers) meeting with unions
Top management (production and human resources) meeting withassociates and supervisors
Plant human resource managers & plant managers with union

Monthly

This system is to grant employees with opportunities to review their work and capabilities once a year, reconfirm their own strength
and weakness, and lead them to further improvement in capabilities. In addition, they can clarify jobs and departments that theywant to try as the career plan, and submit it to their supervisors and the Human Resources Department. The submitted contents are
effectively utilized as the basic data for development and optimal assignment of human resources.

Rotation system
Suzuki implements systematic rotations of human resources by preparing the companywide personnel change plan in order to improve
employees’ knowledge and technical skills and activate our organizations. The goal we set in this system is to have all young employeesof technical jobs, office jobs and sales jobs experience the transfer to different departments within 10 years after entering the company.

International training program
Since FY2015, we have been implementing “6-month overseas training business trip expatriate” that sends young employees tooverseas affiliates, aiming to develop global human resources.
(FY2015~2019 total 31 persons…FY2015-6 persons, FY2016-6 persons, FY2017-5 persons, FY2018-10 persons, FY2019-4 persons)MonthlyMonthlyMonthly

Foreign language training program

Plant tour for family members

Sports tournaments

Family day

The company respects the right of employees to form and join a union. Its management officially recognizes three employee unions,
one each at its three plants. These are internal and independent labor unions and their elections are held as per union by-laws. A
minimum notice period of 21 days, as per regulatory requirements, is typically given to employees prior to implementation of any
significant change in the conditions of service, that could affect them substantially. All major policy changes affecting employees are
discussed with union representatives and the same are communicated to employees directly and through union representatives.

Efforts for career advancement
Suzuki believes that setting high goals is an excellent way to grow one’s self and that such trial itself is the DNA of Suzuki. In order tocope with rapid changes in the market environment, every single employee must set higher goals and strive to acquire higher technicalcapabilities. Suzuki implements the rich human resource development program that supports such individual challenging spirit.

Goal Challenge System
Suzuki believes that it is an excellent way to improve one’s self by not simply waiting for instructions from the supervisor but
voluntarily setting and striving for the goal in terms of accomplishment of the work. Our Goal Challenge System is introduced toallow employees to set and achieve higher goals. In this system, employees confer with their supervisors every half period and set
specific goals to be achieved over the course of six months. Through this process, employees can clarify their own goals and improve
motivation toward them. In addition, their supervisors can appropriately evaluate their goal attainment levels and recognise thetraining points required to further improve their capabilities.
Suzuki’s personnel system places greater emphasis on occupational ability than seniority. Intended to develop professional humanresources who will lead Suzuki’s further growth, it is based on an objective and fair personnel evaluation system according to types ofwork, roles, responsibilities and results of individual employees. The performance-based personnel system and the Goal Challenge
System motivate employees’ intentions to step up each rung of the corporate ladder.

50 ANNUAL REPORT 2020

In order to improve language skills of employees, we have introduced the system to allow young employees up to 7th year at thecompany to set the target score of TOEIC and to take a TOEIC test for free (examination fees are paid by the Company every year).
In addition, we support improvement of language skills by introducing correspondence courses provided by external educationalorganizations, as well as opening in-house language seminars of English, Spanish, Chinese, Thai, Indonesian, etc. before and afterwork hours by inviting external teachers to the company. Suzuki provides employees who have completed such programs with asubsidy for a part of the expenses. 830 employees took the program in FY2019.

In-house education system
Suzuki’s education system is comprised of three pillars, which are group training, in-house training, and voluntary skill development. At theTraining Center (Suzuki Juku), a group in charge of education, enterprise education including seminars according to managerial hierarchy are
conducted based on the policy of our mission statement. Training Center also cooperates withengineering and manufacturing departments to conduct individual occupational (specialized)
training of fundamental knowledge and abilities needed for execution of operation.
Also, active efforts are made to enhance employee performances by educating specificknowledge and skills in each department to nurture human resources, as well as
through e-learning, correspondence course, and language seminars.
In seminars according to managerial hierarchy, main focus is emphasizing education for“enhancing abilities of young employees”, “developing leaders in each managerial
hierarchy”, and “systematically developing management class”.
1. Training for enhancing abilities of young employees- Trainings according to the year of joining the company are conducted every year
for young employees from 2nd to 7th year employees.
2. Selected trainings for systematically developing management class- Trainings for new employees with job titles and their follow-up.

Number of training participants (Suzuki Group)2017

59,5002018

60,5002019

62,200ANNUAL REPORT 2020

51

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Business Partners

Environment

Suzuki intends to make a social contribution under the first paragraph of the mission statement: “Develop products of superior value
by focusing on the customer”. In creating such valuable products, we believe that it is our role to work in mutual cooperation withour business partners so that both parties may prosper. Those business partners are selected through an impartial procedure based on
quality, cost, delivery deadline, technical development capabilities, risk management, and past track record. We also have an open
door policy, which offers the chance of teaming up with Suzuki regardless of size, track record, or countries/regions.

Sustainable relationships
In creating trusting relationships with our business partners we aim toestablish sustainable relationships. For that purpose, we regard the mutualcommunications as the most important factor, and are making efforts inmutual understanding by holding Procurement Policy Presentation once a year
to our business partners to share Suzuki’s policy and product/production plans
as well as to inform our procurement policy based on those plans.
Procurement policy presentation (March 2019)
Also, we are sharing ideas not only between the top and middle
managements, but also between managements and individuals responsiblefor daily business operations.

Global procurement

Business Partners

CSR Policy

Stakeholders including business partners of Suzuki are getting multinationalized and diversified as ourbusiness activities are developed globally. Therefore, we are expected to fulfill social responsibilities with due
considerations to other cultures and histories, as well as to follow legal and social norms of various countries.
Based on such social requests, we compiled basic concept and practices of social responsibilities that weshould accomplish with our business partners as “Suzuki CSR Guidelines for Suppliers”. We are reqesting ourpartners to comply with the guidelines upon making procurement throughout the Suzuki Group.
We kindly request our business partners to understand the purpose and cooperate with us to promote CSR
activities together.
https://www.globalsuzuki.com/corporate/environmental/green_policy/pdf/SUZUKICSRGuidelinesforSuppliers.pdf(Initiatives to maintain workable guideline)• Efforts are made in understanding the environmental conservation initiatives of our business partners by conducting research on
greenhouse gas emissions and water usage amount once a year.
• Aimed to prevent one-sided cost reduction request and delay in payment to our suppliers throughout the whole supply chain, weare holding case-by-case presentation to widely notify about proper trading.
• Quality audit are held periodically (frequency based on rank in quality) under the Supplier Quality Assurance Manual that compiles
Suzuki’s basic policy, activities, and requests for quality assurance.

CSR Guidelines for Suppliers (excerpt)

We will accelerate global procurement activities by working with worldwide manufacturing bases. Previously, procurement activities
were carried out mainly on individual local bases, but we have shifted to a more global-basis approach to obtain the most suitableparts at competitive prices. That benefits not only Suzuki, but also our business partners who can stably receive orders andaccumulate various technologies. By sharing those merits we can build more confident relationships.

1. Safety/Quality• Providing products and services that meet customers’ needs• Sharing appropriate information about products and services• Ensuring safety of products and services• Ensuring quality of products and service

3. Environment• Implementing environmental management• Reducing greenhouse gas emissions• Preventing air, water, and soil pollution• Saving resources and reducing wastes• Managing chemical substances

2. Human Rights/Labor• Eliminating discrimination• Respecting human rights• Prohibiting child labor• Prohibiting forced labor• Not using conflict minerals causing human rights infringement• Wages• Working hours• Dialogue with employees• Safe and healthy working environment

4. Compliance• Compliance with laws
• Compliance with competition laws
• Preventing corruption• Refusing relations with antisocial forces• Managing and protecting confidential information• Managing export trading• Protecting intellectual property

Business continuity plan
In addition to earthquake-proof reinforcing of individual office buildings, we have started compilation of a business continuity plan
(BCP). We regard the preparation for earthquakes, tsunami and other wide-scale disasters as part of our responsibility to local
community, business partners, and customers. We recommend disaster measures such as quakeproofing to our partners located inareas that are likely to experience heavy damage. We are tackling such initiatives together with our business partners for their earlyrecovery if they should fall victim to such disaster.

Efforts for compliance with laws and regulations, respect for human rights and environmental conservation
Suzuki is complying with laws and regulations of each country and region (for example, compliance with “Act against Delay inPayment of Subcontract Proceeds, Etc. to Subcontractors” and business operations according to the five principles for procurement in

5.Information Disclosure• Information disclosure to stakeholders“Automotive Industry Appropriate Transaction Guidelines” in Japan), respect for human rights and environmental conservation. Also
we establish Suzuki CSR Guidelines for Suppliers and request our business partners to practice efforts for compliance with laws andregulations, respect for human rights and environmental conservation.

Basic policy regarding human rights

52 ANNUAL REPORT 2020

Human Resources

Suzuki CSR guidelines for our business partners

With Our Business Partners

As stated in the “Suzuki Group Code of Conduct”, thorough efforts
are made by the Suzuki Group (Suzuki Motor Corporation anddomestic/overseas Group companies) to respect human rights. The
Suzuki Group has no intention of taking part in any action thatwould lead to infringement of human rights even in procurement
activities. We will promote respect of human rights with ourbusiness partners.

Product Quality/Product Safety

Prohibiting all types of harassments

Initiatives
concerning
human rights

Safe and healthy working environment,
and good employee relations
Eliminating discrimination in employment
Prohibiting child labor and forced labor

Suzuki Green Procurement Guideline
Please refer to the following URL for our initiatives for promotion of green procurement.
*Green procurement guideline https://www.globalsuzuki.com/corporate/environmental/green_policy/pdf/suzukiGreenGuideline.pdf

Not using conflict minerals causing human rights infringement

ANNUAL REPORT 2020

53

Environmental andSocial Initiatives

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

CSR Policy

Environment

Structure for promoting CSR

Human Resources

Business Partners

CSR Policy

Policy for stakeholders

At the Executive Committee meetings attended by Representative Directors and Directors and Managing Officers concerned, issues,policies, and measures concerning CSR activities are discussed. Along with the management, the Company as a whole, aims topromote viable CSR activities.

Main stakeholders

PolicyCustomers

For Customer Satisfaction
While keeping in step with the times and taking the opinions of
the public into full consideration, use our knowledge and skills
to create useful products of real value that satisfy the customer.
Do our best to provide quick, reliable, and stress-free sales andafter-sales services in order to enhance customer satisfaction.

- Marketing activity (sales and after-service)- Customer Relations Office- Customer events- Safety driving lectures, etc.

Business Partners

For Prosperous Coexistence
Cooperate with our business partners on even ground tomaintain confidential and prosperous relationships for
manufacturing value-packed products while practicing
initiatives for compliance to laws and regulations, respect ofhuman rights, and preservation of the environment.

- Presentation of procurement policy- Procurement activity- Co-development- Trading of opinions between the management
or persons in charge, etc.

Shareholders &Investors

For Improvement of Corporate Value
Disclose information promptly, appropriately, and fairly while
seeking communication with shareholders and investors, andstrive to reinforce management base and improve ourcorporate value.

- Annual General Meeting of Shareholders- Presentation for institutional investors- IR events for individual investors- Publication of various reports, etc.

Employees

For Comfortable and Worthwhile Workplaces
Create a workplace based on the following points that allows
for employee self-improvement and advancement.
1. Create a safe and healthy workplace for employees.
2. Create a system that fairly evaluates and supports those
who want to take the initiative in advancing their careers.
3. Create a good and stable employer-employee relationship.

- Safety and health committee- Consultation desk
- Goal-challenging system- Self-actualization system- In-house education and training program- Labor-management consultations, etc.

Local Community

For a Community-Friendly Company
Contribute to the development of social community throughpositive communications with local communities and social
action programs, and act as a responsible member of society.

- Local contribution activities in each domestic andoverseas office- Educational support activity- Suzuki Plaza, etc.

Environment

For Global Environmental Conservation
We acknowledge that activities in environmental conservation
are the most important part of business management.
Environmental conservation is promoted in accordance with
our “Suzuki Global Environment Charter” through ourbusiness activities and products in order to achieve a society
with sustainable development.

- Establishment, promotion, and reporting ofEnvironment Plan 2020
- Opening of and participation into various
environment events- Environment education and lectures, etc.

Steps in defining materiality (key issues) in CSR activities
We have defined the materiality (key issues) in CSR activities of the Suzuki Group, led by the departments in charge of CSR including
corporate planning departments (Corporate Communications, Corporate Management/IR, and Corporate Governance) andenvironmental departments, using the following steps.
Steps in defining materiality in CSR activities
Step 1

Extract issues based on GRI guidelines, etc.

Step 2

Departments in charge of CSR organize and discuss issues extracted, and decide their significance for the Suzuki Group

Step 3

Decide significance for the stakeholders through meetings with ESG investors and environmental NGOs

Step 4

Define materiality and decide their priority from two axis: significance for the Suzuki Group and for the stakeholders

Step 5Check their compliance with the mid-term management plan

The defined materiality is shown in the following matrix. Based on this materiality, the Company will work on the CSR activities andreview it periodically.
Extremely HighHigh

Significance for the Stakeholders- Occupational health and safety- Traffic safety- Environmental conservation- Respect for human rights- Supply chain management- Enhancement of product quality(development, production, sales, and service)- Reduction of CO2 emissions- Development and popularization of environmental technologies- Development and popularization of safety technologies- Corporate governance and compliance- Stable growth of sales and income- Effective use of resources (raw materials, energy, and water)- Diversity- Educational support- Contribution to the local communities- Enhancement of corporate value- Nurturing of human resources- Stable labor/management relations- Enforcement of risk management

High

EXTREMELY HIGH

SDGs and CSR activities of the Suzuki Group
Sustainable Development Goals (SDGs), which were adopted by theUnited Nations in September 2015, aims to realise better internationalsociety by setting 17 goals in society, economy, and environment tobe worked on by 2030 and make efforts for their solutions. All
entities including corporations and all persons in all countries andregions are required to take necessary actions.
The Suzuki Group supports SDGs and will actively take responsibilities
in goals that we can contribute in their achievements through our
CSR activities.

Ways of dialogue and communication

Examples of communication with stakeholders

Customers

The opinions and suggestions of customers are distributed to related departments in order to develop better
products and improve manufacturing, quality, sales, and after-sales services. Such important information arepromptly fed back to the relevant persons in charge depending on the criticality of the information. While not only
collecting users’ requests and opinions, but also fully examining the collected information, we often summarize
potential customer needs and inform the relevant departments.

Business partners

We hold Procurement Policy Presentation once a year to our business partners to share Suzuki’s policy and product/
production plans as well as to inform our procurement policy based on those plans.

Shareholders andinvestors

In addition to the settlement briefing for analysts held every quarter of the year, investors’ conference and otherpresentation meetings, domestic/international IR meetings, new model announcement shows (to invite analysts),
and plant tour events for analysts are held.
Amid the COVID-19 where we are unable to hold face-to-face meetings, we continue to have communication withinvestors by utilizing online tools.
Also, the company periodically holds IR presentations for individual investors, and we have been inviting
shareholders to the Suzuki Plaza, after the annual meeting of shareholders since 2008. (Due to the COVID-19, wecancelled the event for June 2020.)

Local society

The domestic automobile plants accept students from the local schools, as part of the outdoor studies program, andprovide them with a plant tour. We also hold exchanges of opinions for having mutual communication with the local
community, as well as autumn festival for promoting friendship among employees, their families, and local residents.

Significance for the Suzuki Group54 ANNUAL REPORT 2020

Product Quality/Product Safety

ANNUAL REPORT 202055

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Data Section

11-Year Financial/Non-Financial Data
Unit
Production unit
Domestic production
Overseas production

Thousand units

Of which India
Automobile Sales unit
Domestic production
Overseas production

Thousand units

Of which India
Sales unit of hybrid models

Thousand units

Production unit
Domestic production Thousand units
Motorcycle

Overseas production
Sales unit
Domestic production Thousand units
Overseas production

11-Year Financial/Non-Financial Data

FY2009FY2010FY2011FY2012FY2013

FY2014FY2015FY2016FY2017FY2018FY2019

2,545

2,878

2,803

2,878

2,857

3,043

2,951

3,074

3,338

3,394

2,964

Number of employees

Unit

959

994

1,020

1,044

998

1,055

861

871

971

1,011

944

Male

1,586

1,884

1,782

1,834

1,859

1,988

2,090

2,203

2,367

2,383

2,020

Female1

Employeees with job titles*

1,028

1,273

1,134

1,169

1,153

1,308

1,424

1,585

1,781

1,850

1,580

2,350

2,643

2,560

2,661

2,709

2,867

2,861

2,918

3,224

3,327

2,852

Male

622

588

596

672

728

756

630

639

668

725

672

Female

1,729

2,055

1,964

1,989

1,981

2,111

2,231

2,279

2,556

2,602

2,179

Managers

871

1,133

1,006

1,051

1,054

1,171

1,305

1,445

1,654

1,754

1,436

Male

–

–

–

–

–

55

249

389

462

539

500

2,904

2,735

2,574

2,269

2,033

1,799

1,480

1,370

1,627

1,747

1,729

PersonPersonEmployment rate of people with disabilities

162

185

174

169

180

154

122

141

152

115

95

2,743

2,550

2,400

2,100

1,852

1,645

1,358

1,229

1,475

1,632

1,634

3,019

2,695

2,589

2,312

2,022

1,764

1,501

1,367

1,576

1,745

1,708

Male

78

79

78

76

74

67

61

62

60

57

49

Female

2,941

2,616

2,511

2,236

1,948

1,697

1,440

1,305

1,516

1,688

1,659

Net sales

FY20092,469.1

FY20102,608.2

FY20112,512.2

FY2012
2,578.3

FY2013
2,938.3

FY2014
3,015.5

FY2015
3,180.7

FY2016
3,169.5

FY2017
3,757.2

FY20183,871.5

FY20193,488.4

Automobile

2,160.8

2,302.0

2,209.0

2,297.8

2,615.7

2,702.0

2,878.5

2,895.6

3,435.8

3,532.5

3,157.4

Motorcycle

262.9

257.7

254.8

230.3

266.6

250.5

233.9

206.3

246.4

255.1

242.6

Marine, etc.

45.4

48.5

48.4

50.2

56.0

63.0

68.3

67.6

75.0

83.9

88.4

Domestic sales

952.6

937.4

986.8

1,040.9

1,132.7

1,094.6

1,047.9

1,037.5

1,116.7

1,252.4

1,179.5

1,516.5

1,670.8

1,525.4

1,537.4

1,805.6

1,920.8

2,132.8

2,132.0

2,640.5

2,619.1

2,308.9

Europe

451.1

395.1

350.9

286.5

398.9

372.0

404.7

425.3

510.6

524.8

465.3

North America

131.8

99.0

105.3

95.6

65.1

66.0

67.0

56.1

62.5

70.8

67.0

Asia

771.7

973.0

886.3

985.4

1,112.0

1,214.5

1,394.7

1,393.0

1,773.2

1,762.3

1,523.7

Others

161.8

203.5

182.9

169.9

229.7

268.3

266.3

257.6

294.2

261.2

252.9

Operating income

79.4

106.9

119.3

144.6

187.7

179.4

195.3

266.7

374.2

324.4

215.1

93.8

122.5

130.6

155.6

197.8

194.3

209.1

286.7

382.8

379.5

245.4

28.9

45.2

53.9

80.4

107.5

96.9

116.7

160.0

215.7

178.8

134.2

120.2

130.3

126.7

169.3

213.6

194.5

171.5

198.8

213.4

268.9

236.4

141.8

138.4

103.1

93.7

117.2

134.4

168.3

163.4

150.9

148.9

164.2

R&D expenses

108.8

104.1

109.8

119.3

127.1

125.9

131.0

131.5

139.4

158.1

148.1

Interest-bearing debt

547.0

484.6

439.8

427.5

445.3

554.7

529.3

639.9

577.9

375.4

404.2

2,381.3

2,224.3

2,302.4

2,487.6

2,874.1

3,252.8

2,702.0

3,116.0

3,340.8

3,402.0

3,339.8

1,089.8

1,107.0

1,111.8

1,298.6

1,494.4

1,701.4

1,187.7

1,387.0

1,595.2

1,715.9

1,793.7

Overseas sales

Ordinary income

Billion yen

Billion yen

Net income*Capital expenditures
Depreciation expenses

Total assets

Billion yen

Billion yen

Net assets
Shareholders’ equity ratio
Net income per share, Basic
Cash dividends per share (annual)
ROE

%
Yen
%

40.0

43.6

42.9

46.1

46.2

45.6

35.4

35.9

38.8

40.9

44.5

62.76

80.65

96.06

143.31

191.60172.67234.98362.54488.86395.26286.36

12.00

13.00

15.00

18.00

24.00

27.00

32.00

44.00

74.00

74.00

85.00

3.6

4.7

5.5

7.5

8.7

6.9

9.6

15.4

17.9

13.3

9.3

FY2013

FY2014FY2015FY2016FY2017FY2018FY201914,405

14,571

14,751

14,932

15,13815,26915,431

15,646

13,222

13,26913,147

13,14013,26013,347

13,467

13,603

13,71113,80813,932

1,282

1,263

1,242

1,265

1,311

1,404

1,465

1,535

1,558

1,623

1,714

–

–

–

–

–

–

4,184

4,232

4,333

4,437

4,518

–

–

–

–

–

–

4,131

4,162

4,243

4,339

4,403

–

–

–

–

–

–

53

70

90

98

115

–

–

926

965

1,014

1,049

1,080

1,140

–

–

–

921

957

1,004

1,037

1,066

1,121

–

–

–

–

–

5

8

10

12

14

19

%

–

–

–

–

–

0.54

0.83

0.99

1.14

1.30

1.67

%

%

Ratio of paid holiday taken*

FY2012

14,389–Person2

FY2011

14,532–

Of which college graduates

Number of employees (consolidated)

FY201014,504–

FemaleUnit

FY2009–PersonTurnover rate

Company Information/Stock Information–

New employment

Male

Consolidated Financial Statement

PersonFemaleRatio of female managers

Financial Review

Person
%

–

–

–

–

–

2.09

2.08

2.04

2.02

2.14

2.20

1,037

249

306

427

588

571

635

794

642

563

708

879

232

268

364

496

496

532

674

541

445

569

158

17

38

63

92

75

103

120

101

118

139

625

230

280

367

446

462

472

585

456

475

494

573

214

247

328

404

425

412

523

396

396

413

52

16

33

39

42

37

60

62

60

79

81

–

–

–

–

–

4.3

4.1

3.8

4.2

3.9

3.1

51,50352,731

54,48455,94857,74957,40961,601

62,992

65,17967,721

68,499

–

–

–

–

–

–

76.0

70.2

75.7

76.7

84.8

*1: Manager, assistant manager, supervisor, and foremen (including expert and technical master)*2: Excludes managers*Net income attributable to owners of the parent

56 ANNUAL REPORT 2020

ANNUAL REPORT 202057

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Data Section

Financial Review

11-Year Financial/Non-Financial Data

Business Segments and Scope of Consolidation
The corporate group of the Company consists of subsidiaries of
129 companies and affiliates of 32. The main businesses are
manufacturing and marketing of automobiles, motorcycles,
outboard motors, motorized wheelchairs, and houses, and also
businesses of logistics and other services related to the respective
operations.

Financial Review

Consolidated Financial Statement

Company Information/Stock Information

Capital Expenditures[Significant notes that are fundamental in making theconsolidated financial statement]
1. Note regarding scope of consolidation... Consolidated subsidiaries 127 companies
2. Note regarding scope of equity method... Affiliates accounted for using equity method 28
companies

Capital expenditures for FY2019 were ¥236,450 million, which were used for production, R&D, and marketing facilities.
Breakdown by segment is as per below.
Segment

Capital Expenses

Facilities¥220,098 million

Motorcycle business¥13,753 million

Production, R&D, and marketing facilities, etc. of motorcycles

Same as above

Marine business, etc.

¥2,598 million

Production, R&D, and marketing facilities, etc. of outboard motors

Same as above

Total
Note

Production, R&D, and marketing facilities, etc. of automobiles

FinancingAutomobile business

Self-financing and outside financing¥236,450 million

1. The above amounts do not include consumption tax, etc.
2. Capital expenditure amount is a total of the Company and its subsidiaries.
3. Investment in each segment are as per below.

Management results of FY2019

In the automobile business, the Company made capital expenditure of ¥56,933 million, which includes expansion of production ability and production facilities for new models. Maruti

With respect to the management environment of the Group for
FY2019, the outlook for the global economy has been
increasingly uncertain, particularly with regard to the U.S.-China
trade issue.
In India, which is the important market for our Group, theeconomic downturn that began in the second half of theprevious fiscal year has become prolonged.
In Japan, also, the company needs to pay attention to the futureof the economy due to the impact of the consumption tax hikeand the impact of the U.S.-China trade issue.
In addition, since the beginning of this year, the impact of the
new coronavirus has spread worldwide, and the severe situation
is expected to continue.
Under such circumstances, net sales and income of FY2019 (April
2019 to March 2020) decreased owing to late recovery in the

Indian automobile market and the impact of foreign exchange,and partly owing to the impact of the new coronavirus which
occurred at the end of the fiscal year.
Consolidated net sales decreased by ¥383.1 billion (9.9%) to¥3,488.4 billion year-on-year. In terms of income, operating
income decreased by ¥109.3 billion (33.7%) to ¥215.1 billion,
ordinary income decreased by ¥134.1 billion (35.3%) to ¥245.4
billion, and net income attributable to owners of the parent
decreased by ¥44.6 billion (24.9%) to ¥134.2 billion year-onyear. The decreased amount of net income attributable toowners of the parent was smaller compared to that of ordinary
income, since the extraordinary loss (accounted ¥81.3 billion in
FY2018 for conducting recall campaign in Japan) largely
decreased year-on-year.

R&D Expenses
R&D expenses of the Group for FY2019 were¥148.1 billion, and their breakdown by segment is as per below.
Segment

R&D Expenses

Automobile business¥130.2 billion

Motorcycle business¥14.8 billion

Marine business, etc.

¥3.1 billion

Total¥148.1 billion

Suzuki India Ltd. also made capital expenditure of ¥45,408 million, which includes expansion of production ability, production facilities for new models, and maintenance andexpansion of sales networks. Suzuki Motor Gujarat Private Ltd. made capital expenditure of ¥61,406 million, which includes expansion of production ability.
In the motorcycle business, the Company made capital expenditure of ¥4,814 million, which includes expansion of production ability.

Liquidity and Source of Funds[Financial Position]
With respect to the financial positions at the end of FY2019, total assets
were ¥3,339.8 billion (increased by ¥62.2 billion from the end of theprevious consolidated fiscal year), total liabilities were ¥1,546.1 billion(decreased by ¥139.9. billion from the end of the previous consolidated
fiscal year), total net assets were ¥1,793.7 billion (increased by ¥77.7
billion from the end of the previous consolidated fiscal year).
As for the shareholders’ equity ratio, 44.5% was achieved, reflecting thecompletion of the procedure for disposition of treasury stock by way ofthird-party allotment to Toyota Motor Corporation, and it recovered to
the level prior to the acquisition of treasury stock of ¥460.3 billion in
September 2015.
Although there are concerns regarding the impact of the new coronavirus
in the current situation, cash on hand totaling cash and deposits and shortterm investment securities at the end of the current consolidated fiscal year
was ¥604.4 billion, which equals to 2.1 months of monthly sales. The
Company has also secured an unused commitment line of ¥300.0 billion,
therefore, the Company has no immediate cash flow problems at the
moment.
As the outlook is uncertain, the Company would like to increase cash on
hand as much as possible, therefore, the Company will consider raisingmore funds in the future.

With respect to internal cash reserves, the Company plans to use themfor various investments such as investment for further improvement ofquality and safety, investment into growing market including India,
dealing with global environmental concerns, and R&D for making
valuable products such as safety technologies and information andcommunication technologies.
[Capital Resources, Liquidity of Funds, and Cash Flows]
Cash flow provided by operating activities for FY2019 amounted to¥171.5 billion (¥383.4 billion was provided in the same period of theprevious fiscal year) due to lower performance. In investing activities,¥297.0 billion was used for capital expenditure in India, etc. (¥250.8
billion was used in the same period of the previous fiscal year). As aresult, free cash flow amounted to ¥125.5 billion of negative (¥132.6
billion of positive in the same period of the previous fiscal year). In
financing activities, ¥80.7 billion was provided due to the completion of
the procedure for disposition of treasury stock by way of third-party
allotment to Toyota Motor Corporation, etc. (¥256.1 billion was used in
the same period of the previous fiscal year).
As a result, the balance of cash and cash equivalents at the end of
FY2019 was ¥420.4 billion, which decreased by ¥52.7 billion from theend of the previous consolidated fiscal year.

Basic Policy on Profit Distribution and Dividends
Our Company celebrated its 100th anniversary in March 2020. Over the
past 100 years, Suzuki has ventured in the fields of looms, motorcycles,
automobiles and outboard motors. These have made Suzuki what it istoday. The Company would like to express our gratitude to ourshareholders, customers, business partners, employees, and all of ourCompany’s stakeholders. Indeed, it has been “a hundred years of feelingnothing less that the deepest gratitude”.
With respect to the dividends, although net sales and income of FY2019
decreased, the Company offered our gratitude to the shareholders formaking the Company celebrate its 100th anniversary of foundation, in
the form of a commemorative dividend. The Company paid the year-end

58 ANNUAL REPORT 2020

dividends of ¥48.00 per share, including an ordinary dividend of ¥37.00
per share and a commemorative dividend of ¥11.00 per share.
As an interim dividend of 37.00 yen was paid, the annual dividends for
FY2019 were ¥85.00 per share.
In line with our basic policy, the surplus is distributed twice a year in theforms of the interim dividend and the year-end dividend. According to
the resolution of our Board of Directors, the interim dividend is available
for the shareholders as of 30 September every year as the record date,
which is stipulated in our company contract. The decision-making
meetings for the dividends are the Board of Directors for the interim
dividend, and the shareholder meeting for the year-end dividend.

ANNUAL REPORT 202059

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Data Section

Consolidated Financial Statement

11-Year Financial/Non-Financial Data

Financial Review

Consolidated Financial Statement

Company Information/Stock Information

Consolidated Balance Sheets(Amount: million yen)

FY2018(As of 31 March 2019)(Amount: million yen)

FY2019(As of 31 March 2020)

Assets

FY2018(As of 31 March 2019)

FY2019(As of 31 March 2020)

257,996

Liabilities

Current assets

Current liabilities

Cash and deposits

509,717

485,808

Accounts payable-trade327,373

Notes and accounts receivables-trade445,700

427,358

Electronically recorded obligations

71,532

71,869

Short-term investment securities

189,046

118,584

Short-term loans payable

93,807

121,082

Merchandise and finished goods

238,013245,409

Current portion of long-term loans payable

63,84574,515Work in process

54,03347,420Current portion of bonds with subscription rights to shares

Raw materials and supplies

59,85062,662

Accrued expenses

Other

131,075

155,349

Income taxes payable

34,661

22,310(5,120)(2,871)

Provision for product warranties

248,199

243,920

1,622,317

1,539,722

Allowance for doubtful accounts
Total current assets

Provision for directors’ bonuses

Noncurrent assets

Other
Total current liabilities

Property, plant and equipment

2,972

297,200

279,91177

95

202,963

150,830

1,339,662

1,225,506

Noncurrent liabilities

Buildings and structures, net

185,779

186,544

Machinery and equipment, net

252,596

241,974

Bonds with subscription rights to shares

11,535

8,560

Tools, furniture and fixtures, net

76,337

68,402Long-term loans payable

206,250

197,064Land

299,977

304,652

Deferred tax liabilities

2,895

5,121

Construction in progress

89,585

118,571

Provision for directors’ retirement benefits

1,161

1,161

Total property, plant and equipment

904,276

920,144

Provision for disasterIntangible assets
-

436

436

Provision for product liabilities

4,890

4,646

Goodwill

135

Provision for recycling expenses

10,255

9,654

Other

2,152

1,604

Liabilities for retirement benefits

82,813

67,206

Total intangible assets

2,288

1,604

Other

26,154

26,768

Total noncurrent liabilities

346,393

320,619

1,686,055

1,546,126

138,202

Investments and other assets
Investment securities

Total liabilities

635,184

662,194

711

549

Deferred tax assets

198,422

174,320

Other

39,342

41,843

Shareholders’ equity

Allowance for doubtful accounts

(379)

(445)

Capital stock

138,161

Allowance for investment loss

(193)

(150)

Capital surplus

143,965

146,490873,088878,312Retained earnings

1,314,587

1,414,665

1,779,653

1,800,060

Treasury stock(113,963)(21,775)

3,401,970

3,339,783

Total shareholders’ equity

1,482,750

1,677,583

95,87387,455Long-term loans receivable

Total investments and other assets
Total noncurrent assets
Total assets–

Net assets

Accumulated other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment(269)(164,544)(255,266)

Accumulated adjustment for retirement benefit(21,369)(21,951)

Total accumulated other comprehensive income(90,260)(190,032)

Subscription rights to shares

115

115

323,309305,990

Total net assets

1,715,914

1,793,657

Total liabilities and net assets

3,401,970

3,339,783

Non-controlling interests

60 ANNUAL REPORT 2020

(219)

ANNUAL REPORT 202061

About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Data Section

Consolidated Financial Statement

11-Year Financial/Non-Financial Data

Consolidated Statement of Income and Consolidated Statement of Comprehensive Income
Consolidated Statement of Income

Net sales
Cost of sales
Gross profit
Selling, general and administrative expenses
Operating income
Non-operating income
Interest income
Dividend income
Equity in earnings of affiliates
Other
Total non-operating income
Non-operating expenses
Interest expenses
Loss on valuation of securities
Foreign exchange losses
Contribution
Loss of liquidation of subsidiaries and affiliates
Other
Total non-operating expenses
Ordinary income
Extraordinary income
Gain on sales of noncurrent assets
Gain on sales of investment securities
Total extraordinary income
Extraordinary loss
Loss on sales of noncurrent assets
Loss on sales of investment securities
Impairment loss
Measure expenses for final inspection
Total extraordinary loss
Income before income taxes etc.
Income taxes-current
Income taxes-deferred
Income taxes
Net income
Net income attributable to non-controlling interests
Net income attributable to owners of the parent(Amount: million yen)

FY2018(1 April 2018 – 31 March 2019)

FY2019(1 April 2019 – 31 March 2020)

3,871,496
2,738,958
1,132,538
808,172
324,365

3,488,433
2,514,779
973,654758,585
215,069

51,206
3,688
5,029
19,482
79,40625,4503,325
6,315
15,93051,021

4,241
257
2,853
3,797
4,446
8,645
24,241
379,530

5,555
1,812
3,508
526
–
9,272
20,675245,414(Amount: million yen)

FY2019(1 April 2019 – 31 March 2020)

Income before income taxes

298,390

246,027

Depreciation and amortization

148,926

164,158

Net cash provided by (used in) operating activities

Impairment loss

1,514

565

Increase (decrease) in allowance for doubtful accounts(112)(1,868)

Increase (decrease) in provision for product warranties

143,410(3,524)

Interest and dividends income(54,894)(28,776)

Interest expenses

4,241

5,555

996

(2,527)

Equity in losses (earnings) of affiliates(5,029)(6,315)

Loss (gain) on sales of property, plant and equipment(1,553)(1,222)

Decrease (increase) in notes and accounts receivable-trade(60,053)

1,109

Decrease (increase) in inventories(7,431)(29,177)

11,853(23,360)(107,695)(51,727)

Foreign exchange losses (gains)

Decrease (increase) in accounts receivable-other
Increase (decrease) in notes and accounts payable-trade
Increase (decrease) in accrued expenses

84,193(7,665)

Other, net(15,881)(54,511)

Subtotal

440,875

206,736

55,05728,525Interest expenses paid

(3,636)(4,808)

Income taxes paid

(108,858)(58,921)

Net cash provided by (used in) operating activities

383,437

171,533

Payments into time deposits(88,201)(97,968)

Proceeds from withdrawal of time deposits

138,195

93,678Purchase of short-term investment securities(819,455)(682,913)

1,763
158
1,922

1,501
170
1,672

Interest and dividends income received

210
9
1,514
81,32983,062
298,390103,503(42,000)
61,502
236,887
58,128
178,759

279
215
565
–
1,060
246,027
48,881
34,537
83,418
162,608
28,386134,222Net cash provided by (used in) investing activities

Consolidated Statement of Comprehensive Income

Company Information/Stock Information

FY2018(1 April 2018 – 31 March 2019)

Proceeds from sales and redemption of securities

730,247

698,776

Purchase of property, plant and equipment(251,507)(245,825)

Purchase of investment securities(30,000)(88,048)

Other, net

69,87425,311(250,848)(296,989)(125)

36,358Net cash provided by (used in) investing activities
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable
Proceeds from long-term loans payable

78,77972,741

Repayment of long-term loans payable(95,001)(70,395)

Purchase of convertible bond with stock acquisition rights(182,400)––

96,096

Purchase of treasury stock

62 ANNUAL REPORT 2020

Consolidated Financial Statement

Consolidated Statement of Cash Flows

Proceeds from disposal of treasury stock

Net income
Other comprehensive income
Valuation difference on available-for-sale securities
Deferred gains or losses on hedges
Foreign currency translation adjustment
Adjustment for retirement benefits
Share of other comprehensive income of affiliates accounted for using equity method
Total other comprehensive income
Comprehensive income
Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to non-controlling interests

Financial Review(Amount: million yen)

FY2018(1 April 2018 – 31 March 2019)

FY2019(1 April 2019 – 31 March 2020)

236,887

162,608(16,012)(214)(25,318)(10,848)(6,565)(58,958)
177,928(2,603)(313)(119,454)(1,239)(1,308)(124,919)
37,688131,010
46,91834,425
3,263

(7)

(4)

Cash dividends paid

(36,340)(34,139)

Dividends paid to non-controlling interests(20,819)(19,975)

Other, net
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents

(194)

27

(256,110)

80,708(4,228)(7,956)

Net increase (decrease) in cash and cash equivalents(127,749)(52,704)

Cash and cash equivalents at the beginning of period

600,846

473,097

Cash and cash equivalents at the end of period

473,097

420,392

ANNUAL REPORT 202063About Suzuki Overview Governance Environmental and Social Initiatives Data Section

Data Section

Company Information/Stock Information
Company NameSUZUKI MOTOR CORPORATION

Date of Incorporation

March 1920 Incorporated as Suzuki Loom Manufacturing Co.
June 1954
Name changed to Suzuki Motor Co., Ltd.
October 1990 Name changed to Suzuki Motor Corporation

11-Year Financial/Non-Financial Data

Financial Review

Consolidated Financial Statement

Company Information/Stock Information

Consolidated Statement of Cash Flows (as of 31 March 2020)

Representative

Representative Director and President Toshihiro Suzuki

No. of Employees[Consolidated] 68,499 [Non-consolidated] 15,646 (as of 31 March 2020)

Net Sales[Consolidated] 3,488,433 million yen [Non-consolidated] 1,792,834 million yen (FY2019)

Head Office

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

Fiscal Year-End

31 March

Public Accounting Firm

Seimei Audit Corporation

Main Products

Automobiles, Motorcycles, Outboard Motors, Motorized Wheelchairs, etc.

Main Facilities

Head Office
Kosai Plant
Iwata Plant
Osuka Plant
Sagara Plant
Hamamatsu Plant
Tokyo Branch Office
Yokohama Lab.
Marine Technical Center

Capital .................................................................................... ¥138,202 million
Total number of authorized shares ................................................. 1,500 million
Total number of shares issued ........................................................ 491,067,800
Number of shareholders ......................................................................... 31,025
Stock Listing .....................................................................Tokyo Stock Exchange
Securities Code .......................................................................................... 7269
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
Top Ten Largest Shareholders

Suzuki Group Companies (as of 31 March 2020)
Consolidated subsidiaries

Hamamatsu, Shizuoka
Kosai, Shizuoka
Iwata, Shizuoka
Kakegawa, Shizuoka
Makinohara, Shizuoka
Hamamatsu, Shizuoka
Minato-ku, Tokyo
Yokohama, Kanagawa
Kosai, Shizuoka

Percentage ofShareholding (%)

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

46,031

9.5

Japan Trustee Services Bank, Ltd. (Trust Account)

25,188

5.2

Toyota Motor Corporation

24,0004.9

Tokio Marine & Nichido Fire Insurance Co., Ltd.

17,961

3.7

MUFG Bank, Ltd.

16,000

3.3

Resona Bank, Ltd.

13,0002.7

The Shizuoka Bank, Ltd.

12,100

2.5

JP Morgan Chase Bank 385632

11,626

2.4

Japan Trustee Services Bank, Ltd. (Trust Account 9)

9,437

1.9

The Bank of New York Mellon 140042

8,916

1.8

(Note) 1. Number of shares less than 1,000 is truncated.
2. Percentage of Shareholding is calculated excluding treasury stock (5,654 thousand shares).

127 companies<Japan>Consolidated subsidiaries in Japan
70 companies
Manufacturing companies including Suzuki Auto Parts Mfg. Co., Ltd., Snic Co., Ltd., etc.
Sales companies including Suzuki Motor Sales Tokyo Inc., Suzuki Motor Sales Kinki Inc., etc.
<Overseas>
Overseas consolidated subsidiaries
57 companies
Manufacturing companies including Maruti Suzuki India Ltd. (India),
Pak Suzuki Motor Co., Ltd. (Pakistan),
PT. Suzuki Indomobil Motor (Indonesia),
Magyar Suzuki Corporation Ltd. (Hungary), etc.
Sales companies including Suzuki Deutschland GmBH (Germany), etc.

64 ANNUAL REPORT 2020

Number of Shares(1,000 shares)

Name of Shareholders

Total Shareholder Return%

FY2015FY2016FY2017FY2018FY2019

84.2

130.0

162.8

141.8

80.1

(Note) 1. Number of shares less than 1,000 is truncated.
2. Percentage of Shareholding is calculated excluding treasury stock (5,654 thousand shares).

Third-party evaluation
The Company will continuously be conscious of disclosing the efforts for ESG, and enhance communication with the stakeholders toconsistently promote sustainable enhancement of corporate value.
FTSE4Good Index Series
Created by FTSE Russell, a wholly owned subsidiary of
London Stock Exchange Group, the FTSE4Good IndexSeries is designed to measure the performance ofcompanies demonstrating strong ESG practices. The
FTSE4Good indexes are used by a wide variety of market
participants focused on ESG investments to create andassess responsible investment funds and other products.
More information about FTSE4Good Index Series
https://www.ftserussell.com/products/indices/FTSE4Good

FTSE4GoodFTSE Blossom Japan Index
The FTSE Blossom Japan Index is an ESG index focused onJapanese firms. The index is constructed so that industry
weights align with the Japanese equity market and uses
the globally established FTSE4Good Index Inclusion Rules FTSE Blossom
which are drawn from existing international standards
Japan
including the UN Sustainable Development Goals.
More information about FTSE Blossom Japan Index
https://www.ftserussell.com/products/indices/blossom-japan

ANNUAL REPORT 202065