434 (215 + 4 + 215) x 280 mm

2015

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

ANNUAL REPORT 2015
Printed in Japan

FINANCIAL SECTIONCONTENTSManagement Discussion and Analysis......................................................... 31
Five-Year Summary...................................................................................... 33
Consolidated Financial Statements.............................................................. 34
Consolidated Balance Sheets.............................................................................. 34
Consolidated Statements of Income andConsolidated Statements of Comprehensive Income..................................... 36
Consolidated Statements of Changes in Net Assets............................................. 38
Consolidated Statements of Cash Flows.............................................................. 39
Notes to Consolidated Financial Statements....................................................... 40
Independent Auditor’s Report.............................................................................. 65

30 SUZUKI MOTOR CORPORATION

Management Discussion and Analysis

Management Discussion and Analysis

1. Operating results(1) The operating results by segment(a) Motorcycle
The net sales decreased by ¥16.1 billion (6.0%) to ¥250.5 billion year-on-year mainly owing to the decrease in the sales in
Asia. The operating income of ¥0.1 billion in the previous fiscal year became an operating loss of ¥0.7 billion.
(b) Automobile
The Company made efforts to expand its sales and strengthen the products such as by winning numbers of awards including the 2015 RJC Car of the Year award for the much-favored Hustler minicar, launching the all-new Alto minicar, which has
achieved the top level of fuel efficiency among non-hybrid gasoline vehicles in Japan, and launching the Every and Every
Wagon one-box minicars which have pursued roominess, fuel efficiency, and user-friendliness. However, partly owing to theimpact of the recoil reduction from the hike in the rate of the consumption tax in Japan, the Japanese domestic net sales decreased year-on-year. The overseas net sales increased year-on-year mainly owing to the increase in India. Consequently, thenet sales of the automobile business increased by ¥86.3 billion (3.3%) to ¥2,702.0 billion year-on-year. The operating income
decreased by ¥7.5 billion (4.2%) to ¥171.8 billion year-on-year mainly owing to the decrease in the income in Japan, Indonesia, and Thailand, despite the increase in the income in India.
(c) Marine and Power products, etc.
The net sales increased by ¥7.0 billion (12.5%) to ¥63.0 billion year-on-year mainly owing to the increase in the sales of theoutboard motors in Europe and North America. The operating income was at the same level as the previous fiscal year at ¥8.3
billion.

(2) The operating results by geographical areas(a) Japan
The net sales increased by ¥63.3 billion (3.7%) to ¥1,765.0 billion year-on-year due to expansion of triangle trade via Japanand other causes. The operating income decreased by ¥43.8 billion (32.6%) to ¥90.7 billion year-on-year mainly owing to thestrengthening of sales promotion of Japan and overseas and the increase in the quality expenses.
(b) Europe
The net sales increased by ¥59.6 billion (15.9%) to ¥436.1 billion year-on-year owing to launch of all-new compact SUV Vitara,
expansion of triangle trade via Japan, and other causes. The operating income increased by ¥0.9 billion (23.2%) to ¥5.1 billion year-on-year.
(c) Asia
The net sales increased by ¥130.8 billion (11.1%) to ¥1,306.2 billion year-on-year due to increase of sales in India, Pakistan
and others though decrease of sales in Indonesia and Thailand. The operating income increased by ¥22.2 billion (37.3%) to¥81.6 billion year-on-year, by covering the decrease in the income in Indonesia and Thailand with the Indian automobile business.
(d) Other areas
The net sales increased by ¥8.2 billion (5.4%) to ¥159.2 billion year-on-year owing to increase of sales of outboard motors
in the United States, increase of sales of motorcycles and automobiles in Latin America, and other causes. The operating
income increased by ¥2.4 billion to ¥2.6 billion year-on-year.

(3) Selling, general and administrative expenses
In the current consolidated fiscal year, the amount of selling, general and administrative expenses increased by ¥37.9 billion (6.2%)
to ¥645.7 billion year-on-year because of increase of sales expenses such as sales promotion expenses.

(4) Other income and expenses
In the current consolidated fiscal year, the net amount of other income and expenses was a gain of ¥13.8 billion, which increased by ¥4.5
billion year-on-year. This was mainly due to increase of Interest income and dividends income from the previous fiscal year.

SUZUKI MOTOR CORPORATION 31

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

As for the next fiscal year, although the decrease in the demand of minicars in Japan is expected, the Company forecasts increase in sales and income compared to this fiscal year mainly owing to the increase in the overseas sales including India. The
Group will work as one to reform in every field to accomplish the below forecasts for the consolidated operation by pursuing thebusiness activity.
(Forecasts for the consolidated operating results-First Half)
Net sales¥1,500.0 billion(up 4.8% year-on-year)
Operating income¥91.0 billion(up 0.5% year-on-year)
Net income attributable to¥55.0 billion(up 2.0% year-on-year)
owners of the parent(Forecasts for the consolidated operating results-Full Year)Net sales¥3,100.0 billion(up 2.8% year-on-year)
Operating income¥190.0 billion(up 5.9% year-on-year)
Net income attributable to¥110.0 billion(up 13.6% year-on-year)
owners of the parent
Foreign exchange rates 115yen/US$, 125yen/Euro, 1.85yen/Indian Rupee		
0.90yen/100Indonesian Rupiah, 3.50yen/ Thai Baht
* The forecasts for next fiscal year mentioned above are based on currently available information and assumptions, containrisks and uncertainty, and do not constitute guarantees of future achievement. Please note that the actual results may greatly
vary by the changes of various factors. Those factors, which may influence the actual results, include economic conditions
and the trend of demand in major markets and the fluctuation of foreign exchange rate (mainly US dollar/Yen rate, Euro/Yen
rate and Indian Rupee/Yen rate).

2. Liquidity and capital resources(1) Cash flow

Cash flow provided by operating activities for FY2014 amounted to ¥255.0 billion (¥322.9 billion was provided in the previous
fiscal year), and ¥120.9 billion was used for the acquisition of property, plant and equipment etc. and others in the investment
activities (¥286.6 billion was used in the previous fiscal year). As a result, free cash flow amounted to ¥134.1 billion of positive (¥36.3
billion of positive for the previous fiscal year). In financing activities, ¥84.5 billion was provided by net increase of long term loan
and others (¥2.8 billion was provided in the previous fiscal year).
As a result, the balance of cash and cash equivalents at the end of FY2014 amounted to ¥932.3 billion and increased by ¥221.7
billion from the end of previous fiscal year.

(2) Demand for money
During the current consolidated fiscal year, The Company and consolidated subsidiaries invested a total ¥194.5 billion of capital
expenditures on various areas such as development of new model and research & development.
Capital expenditure project for the next fiscal year is ¥180.0 billion. The required fund will be covered mainly by our own funds
and external financing if necessary.

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

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

Millions of yen(except per share amounts)

2015

2014

2013

2012

2011

2015

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

¥3,015,461¥2,938,314¥2,578,317¥2,512,186¥2,608,217$25,093,298

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

96,862

107,484

80,38953,88745,174806,044

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

172.67

191.60143.31

96.06

80.65

1.44

Years ended 31 March

Net income per share:
Fully diluted...............................

172.63191.57131.67

88.28

74.11

1.44

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

27.00

24.00

18.00

15.00

13.00

0.22

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

1,701,390

1,494,357

1,298,553

1,111,757

1,106,999

14,158,199

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

2,008,729

1,790,832

1,560,218

1,509,568

1,372,885

16,715,730

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

3,252,800

2,874,074

2,487,635

2,302,439

2,224,344

27,068,326

Depreciation and amortization.....

134,377

117,188

93,680103,117

138,368

1,118,228

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

Millions of yen(except per share amounts)

2015

2014

2013

2012

2011

2015

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

¥1,663,147¥1,498,853¥1,422,595¥1,383,269¥1,409,205$13,839,954

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

51,24867,21936,405

15,846

10,834426,463

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

91.34

119.81

64.89

28.25

19.34

0.76

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

91.32

119.79

59.64

25.98

17.80

0.76

Years ended 31 March

Net income per share:

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

27.00

24.00

18.00

15.00

13.00

0.22

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

937,767

859,224

761,353

703,292

691,207

7,803,677

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

1,191,614

1,070,668

921,352

921,669

818,964

9,916,069

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

2,096,545

1,850,068

1,641,700

1,597,903

1,524,232

17,446,495

Depreciation and amortization.....

37,42133,60535,62638,532

61,265

311,407

Note: Yen amounts are translated into US dollars for convenience only, at ¥120.17 = US$1, the prevailing exchange rate as of 31 March 2015.

SUZUKI MOTOR CORPORATION 33

Consolidated Financial Statements
Consolidated Balance Sheets
As of 31 March 2015 and 2014

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

Thousands of
US dollars

Millions of yen

2015

2014

2015

¥ 932,261¥ 710,611$ 7,757,854

316,826

310,694

2,636,483

ASSETS
Current assets:
Cash and cash equivalents *NOTE 4 .....................................
Receivables:
Notes and accounts receivables-trade *NOTE 4 ...............
Allowance for doubtful accounts....................................

(4,156)(4,804)(34,590)

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

314,391

276,2852,616,222

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

115,015

105,064

957,109

Other....................................................................................

334,391

392,982

2,782,651

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

2,008,729

1,790,832

16,715,730

Land *NOTE 5..........................................................................

259,540

238,532

2,159,774

NOTE 5

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

403,922385,797

3,361,255

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

1,280,563

1,120,381

10,656,269

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

391,797

378,0113,260,357

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

70,45696,560586,310

2,406,280

2,219,283

20,023,967

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

(1,610,388)(1,524,862)(13,400,915)

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

795,892

694,420

6,623,051

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

341,325

270,3292,840,355

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

59,54455,699495,501

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

1,860

15,862

15,484

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

19,98520,924

166,311

Other....................................................................................

25,46226,005

211,889

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

448,179

388,8213,729,543

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

¥3,252,800¥2,874,074$27,068,326

Property, plant and equipment:

Investments and other assets:

NOTE 7

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

34 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

Thousands of
US dollars

Millions of yen

2015

2014

2015

¥ 177,805¥ 197,413$ 1,479,615

LIABILITIES AND NET ASSETS
Current liabilities:
Short-term loans payable *NOTE 4 and 5 ..................................
Current portion of long-term loans payable *NOTE 4 and 5......

104,145

38,748866,650

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

479,950

433,819

3,993,925

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

21,797

46,628181,392

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

181,217

171,274

1,508,005

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

60,30561,447

501,835

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

6,190

967

51,517

Other *NOTE 5 .........................................................................

121,188

106,634

1,008,479

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

1,152,601

1,056,933

9,591,423

272,717

209,166

2,269,426

40,791

36,918339,450

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

8,923

16,59674,260

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

43,76629,179364,208

Other *NOTE 5..........................................................................

32,60930,923271,357

Noncurrent liabilities:
Long-term loans payable *NOTE 4 and 5 ..................................
Liabilities for retirement benefits *NOTE 7 ..............................

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

398,808

322,783

3,318,703

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

1,551,409

1,379,717

12,910,126

Net assets:
Shareholders’ equity: *NOTE 11
Capital stock:
Common stock: Authorized-1,500,000,000 shares Issued,
as of 31 March 2015 – 561,047,304...............................

138,014—

1,148,495

as of 31 March 2014 – 561,047,304...............................

—

138,014—

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

144,364

144,364

1,201,337

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

1,082,440

1,008,555

9,007,576

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

(62)

(57)

(517)

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

1,364,757

1,290,877

11,356,893

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

158,788

104,745

1,321,361

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

679

131

5, 654Foreign currency translation adjustment...........................

(42,997)(72,898)(357,806)

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

864

3,867

7,190

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

117,333

35,846

976,399

Subscription rights to shares *NOTE 14 .............................

250

168

2,088

219,048

167,464

1,822,818

Total net assets¥1,701,390¥1,494,357$14,158,199

Commitments and contingent liabilities *NOTE 15
Total liabilities and net assets.............................................

¥3,252,800¥2,874,074$27,068,326

Minority interests..............................................................

SUZUKI MOTOR CORPORATION 35

Consolidated Financial Statements

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)Years ended 31 March 2015 and 2014

Thousands of
US dollars

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2015

2014

2015

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

¥3,015,461¥2,938,314$25,093,298

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

2,190,309

2,142,754

18,226,758

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

825,152

795,559

6,866,540

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

645,727

607,812

5,373,449

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

179,424

187,747

1,493,091

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

25,25918,441

210,200

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

(9,433)(6,158)(78,505)

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

(1,454)(115)(12,105)

Other, net.............................................................................

(549)(2,823)(4,569)

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

193,246

197,090

1,608,111

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

70,58967,212587,415

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

(4,970)2,387(41,362)

65,61969,600546,052

Income before minority interests........................................

127,627

127,489

1,062,058

Minority interests in income................................................

30,76520,005

256,01496,862¥ 107,484

Income taxes: *NOTE 8

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

¥

Yen

$

806,044

US dollars

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

¥

172.67¥

191.60$

1.44

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

172.63191.57

1.44

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

27.00

24.00

0.22

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

36 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements(Consolidated Statements of Comprehensive Income)Years ended 31 March 2015 and 2014

Thousands of
US dollars

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2015

2014

2015

Income before minority interests ......................................

¥127,627¥127,489$1,062,058

Other comprehensive income *NOTE 12
Valuation difference on available-for-sale securities.........

57,73447,596

480,437

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

587(1,196)4,884

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

46,77427,555389,233

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

(3,005)—(25,012)

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

3,489

7,504

29,038

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

105,579

81,459878,581Comprehensive income .....................................................

233,206

208,949

1,940,639

Comprehensive income attributable to owners of the parent

178,312

187,105

1,483,833

Comprehensive income attributable to minority interests

54,894

21,844

456,806

Comprehensive income attributable to:

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

SUZUKI MOTOR CORPORATION 37

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Millions of yen

Years ended 31 March 2015 and 2014

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES
Balance as of
31 March 2013
Dividends from surplus...

Thousandsof sharesof common
stock

561,047

Capitalstock

CapitalsurplusRetainedearnings

Treasurystock¥138,014¥144,364¥912,304¥(86)

Total othercomprehensive income

Subscription
rights toshares¥(47,642)¥84

Minority
interests¥151,513———(11,220)

—

—

—

—

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

—

—

—

107,484

—

—

—

—

Purchase of treasury stock..

—

—

—

—

(5)

—

—

—

Disposal of treasury stock...
Transfer of loss on
disposal of treasury stock..
Net changes of items otherthan shareholders’ equity.....
Balance as of
31 March 2014
Cumulative effects ofchanges in accounting
policies............................
Balance as of 31 March2014 reflected changes
in accounting policies
Dividends from surplus...

—

—

(13)

—

35

—

—

—

—

—

13

(13)

—

—

—

—

—

—

—

—

—

83,48883

15,950561,047¥138,014¥144,364 ¥1,008,555¥(57)¥35,846¥168¥167,464——(8,118)

—

—

—

—

561,047¥138,014¥144,364 ¥1,000,437¥(57)¥35,846¥168¥167,464

Net income..................
Effects of changes offiscal year....................
Purchase of treasury stock..
Disposal of treasury stock...
Transfer of loss on
disposal of treasury stock..
Net changes of items otherthan shareholders’ equity ...
Balance as of
31 March 2015

—

—

—

—

(13,464)

—

—

—

—

—

—

—

96,862

—

—

—

—

—

—

—

(1,384)

—

—

—

—

—

—

—

—

(30)

—

—

—

—

—

(9)

—

25

—

—

—

—

—

9

(9)

—

—

—

—

—

—

—

—

—

81,487

81

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

Thousands of US dollars
Thousandsof sharesof commonstock

Balance as of
31 March 2014
Cumulative effects ofchanges in accounting
policies............................
Balance as of 31 March2014 reflected changes
in accounting policies
Dividends from surplus...
Net income..................
Effects of changes offiscal year....................
Purchase of treasury stock...
Disposal of treasury stock...
Transfer of loss on disposalof treasury stock..............
Net changes of items otherthan shareholders’ equity ...
Balance as of
31 March 2015

Capitalstock

CapitalsurplusRetainedearnings

561,047 $1,148,495 $1,201,337

Treasurystock$8,392,738$(477)$298,296—(67,557)——

561,047 $1,148,495 $1,201,337$8,325,181$(477)$298,296——

Subscription
rights tosharesMinority
interests$1,405 $1,393,565——$1,405 $1,393,565

—

—

—

(112,049)

—

—

—

—

—

—

—

806,044

—

—

—

—

—

—

—

(11,521)

—

—

—

—

—

—

—

—

(252)

—

—

—

—

—

(77)

—

212

—

—

—

—

—

77

(77)

—

—

—

—

—

—

—

—

—

678,102682

429,253

561,047 $1,148,495 $1,201,337$9,007,576$(517)$976,399

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

38 SUZUKI MOTOR CORPORATION

Total othercomprehensive income$2,088 $1,822,818

Consolidated Financial Statements

Consolidated Statements of Cash Flows
Years ended 31 March 2015 and 2014

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIESCash flows from operating activities
Income before income taxes..............................................
Depreciation and amortization...........................................
Impairment loss..................................................................
Increase (decrease) in allowance for doubtful accounts
Interest and dividends income...........................................
Interest expenses...............................................................
Foreign exchange losses (gains).......................................
Equity in (earnings) losses of affiliates...............................
Loss (gain) on sales of property, plant and equipment....
Decrease (increase) in notes and accounts receivable-trade.
Decrease (increase) in inventories....................................
Increase (decrease) in notes and accounts payable-trade.
Increase (decrease) in accrued expenses.......................
Other, net.............................................................................
Sub-totalInterest and dividends income received...........................
Interest expenses paid.......................................................
Income taxes paid..............................................................
Net cash provided by (used in) operating activities
Cash flows from investing activities
Payments into time deposits..............................................
Proceeds from withdrawal of time deposits......................
Purchases of short-term investment securities.................
Proceeds from sales of short-term investment securities.
Purchases of property, plant and equipment....................
Other, net.............................................................................
Net cash provided by (used in) investing activities
Cash flows from financing activities
Net increase (decrease) in short-term loans payable.......
Proceeds from long-term loans payable...........................
Repayment of long-term loans payable............................
Purchase of treasury stock.................................................
Cash dividends paid..........................................................
Cash dividends paid to minority shareholders..................
Other, net.............................................................................
Net cash provided by (used in) financing activities
Effect of exchange rate changes on cash and cash equivalents
Net increase (decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Increase (decrease) in cash and cash equivalents
resulting from change of fiscal year of subsidiaries
Increase (decrease) in cash and cash equivalents
resulting from change of scope of consolidation
Cash and cash equivalents at end of period *NOTE 10

Thousands of
US dollars

Millions of yen

2015

2014

2015

¥193,246
134,377969(867)(25,259)
9,433
4,804
1,454
102
(9,242)(37,179)
44,3902,542
15,838334,61125,347(8,108)(96,813)
255,037¥197,090
117,188
1,029(699)(18,441)
6,158
6,718
115
(290)
(49,559)(10)
72,664
12,6807,126
351,772
18,999(5,646)(42,209)
322,915$1,608,111
1,118,228
8,067(7,216)(210,200)
78,50539,981
12,105
850(76,914)(309,392)
369,398
21,155
131,804
2,784,485
210,933(67,475)(805,640)
2,122,302(79,661)
136,236(193,152)
206,239(192,694)
2,123(120,909)(77,477)
38,842(209,912)
165,156(204,739)
1,570(286,559)(662,905)
1,133,695(1,607,325)
1,716,227(1,603,516)
17,674(1,006,149)(26,353)
173,000(45,191)(30)(13,466)(3,456)(28)
84,472
5,042
223,643
710,611

24,691
30,000(38,488)(5)(11,219)(2,133)(35)
2,809
10,34249,508661,102(219,297)
1,439,627(376,066)(252)(112,062)(28,765)(236)
702,945
41,962
1,861,060
5,913,381(2,039)—(16,969)45¥932,261—¥710,611

382$7,757,854

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

SUZUKI MOTOR CORPORATION 39

Consolidated Financial Statements

Notes to Consolidated Financial Statements
NOTE 1: Basis of presenting consolidated financial statements

The accompanying consolidated financial statements of Suzuki Motor Corporation (The Company), consolidated Subsidiaries,
and Affiliates (The Group) have been prepared on the basis of generally accepted accounting principles and practices in Japan,
and the consolidated financial statements were filed with the Financial Services Agency as required by the Financial Instruments
and Exchange Act of Japan.
The preparation of the consolidated financial statements requires the management to select and adopt accounting standards andmake estimates and assumptions that affect the reported amount of assets and liabilities, revenue and expenses, and the corresponding methods of disclosure.
As such, the management’s estimates are made reasonably based on historical results. But due to the inherent uncertainty involved in making estimates, actual results could differ from these estimates.
For the convenience of readers outside Japan, certain reclassifications and modifications have been made to the original consolidated financial statements.
As permitted, an amount of less than one million yen has been omitted. For the convenience of readers, the consolidated financial
statements, including the opening balance of shareholders’ equity, have been presented in US dollars by translating all Japanese
yen amounts on the basis of 120.17 to US$1, the rate of exchange prevailing as of 31 March 2015. Consequently, the totals shownin the consolidated financial statements (both in yen and in US dollars) do not necessarily agree with the sum of the individual
amounts.

NOTE 2: Summary of significant accounting policies(a) Principles of consolidation
The consolidated financial statements for the years ended 31 March 2015 and 2014, include the accounts of The Group. And
the numbers of consolidated subsidiaries are both 133. All significant inter-company accounts and transactions are eliminatedin consolidation. Investments in affiliated companies are accounted for by the equity method.
The difference at the time of acquisition between the cost and underlying net equity of investments in consolidated subsidiaries (goodwill) and in affiliated companies accounted for under the equity method is, as a rule, amortized on a straight-line
basis over a period of five years after appropriate adjustments.
Consolidated subsidiaries that settled the account in 31 December without provisional account settlement as of consolidated
account settlement date were consolidated with the financial statements based on their financial statements as of 31 December and made necessary adjustments for consolidation regarding important transactions that occurred between 31 December
and consolidated account settlement date.
From this consolidated fiscal year, Suzuki Motor Iberica, S.A.U. and other 5 subsidiaries have changed the settlement datefrom 31 December to 31 March and Suzuki Motor (Thailand) Co., Ltd. and other 16 subsidiaries have been consolidated
based on the financial statements of provisional account as of consolidated account settlement date. As a result, subsidiary
which has been consolidated based on the financial statements as of 31 December is 1 subsidiary.
With regard to these changing mentioned above, the net income (loss) of three months from 1 January to 31 March 2014 has
been recognized in retained earnings.
As a result, retained earnings decreased by ¥1,384 million from the beginning of this consolidated fiscal year.
The account settlement date of Magyar Suzuki Corporation Ltd. and other 4 subsidiaries is 31 December, but they are continuously consolidated based on the financial statements of provisional account settlement as of 31 March.
The account settlement date of other consolidated subsidiaries is the same as the consolidated account settlement date.
(b) Allowance for doubtful accounts
In order to allow for loss from bad debts, estimated uncollectible amount based on actual ratio of bad debt is appropriated as
to general receivable. As for specific receivable with higher default possibility, recoverable amount is estimated respectively
and uncollectible amount is appropriated.
(c) Allowance for investment loss
The differences between the book value and the fair value of securities and investment not quoted at an exchange are determined and appropriated as reserve in order to allow for losses from these investments.
(d) Provision for product warranties
The provision is appropriated into this account based on the warranty agreement and past experience in order to allow for
expenses related to the maintenance service of products sold.
(e) Provision for directors’ bonuses
In order to defray bonuses for directors and company auditors, estimated amount of such bonuses is appropriated.
(f) Provision for directors’ retirement benefits
The amount to be paid at the end of fiscal year had been posted pursuant to The Company’s regulations on the retirement
allowance of Directors and Company Auditors. However, The Company’s retirement benefit system for them was abolished at
the closure of the Ordinary General Meeting of Shareholders held on 29 June 2006. And it was approved at Ordinary General
Meeting of Shareholders that reappointed Directors and Company Auditors were paid their retirement benefit at the time of
their retirement, based on their years of service. Estimated amount of such retirement benefits is appropriated at the end of thecurrent consolidated fiscal year. Furthermore, for the Directors and Company Auditors of some consolidated subsidiaries, theamount to be paid at the end of the year was posted pursuant to their regulation on the retirement allowance of Directors andCompany Auditors.
40 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements(g) Provision for disaster
Reasonably estimated amount is appropriated for anticipated loss mainly caused by relocation of plants and facilities locatedin the Ryuyo Region in Iwata City, Shizuoka Prefecture where massive tsunami damages caused by Tokai and Tonankai Earthquake are anticipated.
(h) Provision for product liabilities
With regards to the products exported to North American market, to prepare for the payment of compensation, not covered
by “Product Liability Insurance” the anticipated amount to be borne by The Group is computed and provided on the basis ofactual results in the past.
(i) Provision for recycling expenses
The provision is appropriated for an estimated expense related to the recycle of products of The Company based on actual
sales.
( j) Short-term investment securities and Investment securities
The Company and its subsidiaries hold securities of listed companies, which have a risk of price fluctuations, and non-listedcompanies whose stock prices are difficult to be evaluated.
If we judge the decline in investment value is not temporary, we recognize revaluation loss based on the reasonable standard.
If the stock market falls, we may incur significant loss on valuation of securities.
Securities have to be classified into four categories: trading securities; held-to-maturity debt securities; investments of The
Company in equity securities issued by consolidated subsidiaries and affiliates; and available-for-sale securities.
According to this classification, securities held by The Company and its subsidiaries are available-for-sale securities. Available-for-sale securities for which market quotations are available are stated at market value method based on the market
values as of the consolidated account settlement date (The evaluation differences shall be reported as other comprehensive
income, and sales costs shall be calculated mainly by the moving average method).
Available-for-sale securities for which market quotations are unavailable are stated at cost by a moving average method.
(k) Hedge accounting
Gains or losses arising from changes in fair value of the derivatives designated as “hedging instruments” are deferred until thegains and losses on the hedged items or transactions are recognized.
If foreign currency forward contracts meet certain criteria, exceptional hedge accounting is applied and these contracts arehandled together with hedged items. If interest rate swap contracts meet certain criteria, special exceptional hedge accounting is applied and these contracts are handled together with hedged items. If cross currency interest rate swap contracts
meet certain criteria, integration method (special exceptional method and exceptional method) is applied and these contracts
are handled together with hedged items.
The derivatives designated as hedging instruments by The Company and its subsidiaries are principally forward exchange
contracts, interest swaps and cross currency interest rate swaps. The related hedged items are foreign currency denominatedtransaction and borrowings.
The Company and its subsidiaries have a policy to utilize the above hedging instruments in order to reduce our exposure to
the risk of interest rate and foreign exchange fluctuation. Thus, our purchases of the hedging instruments are limited to, at
maximum, the amounts of the hedged items. The Company and its subsidiaries evaluate effectiveness of its hedging activities
by reference to the accumulated gains or losses on the hedging instruments and the related hedged items from the commencement of the hedges.
(l) Foreign currency translation
All monetary assets and liabilities denominated in foreign currencies, whether long-term or short-term are translated into
Japanese yen at the exchange rates prevailing at the balance sheet date. Resulting gains and losses are included in net
income or loss for the period.
Assets and liabilities of the foreign subsidiaries and affiliates are translated into Japanese yen at the exchange rates prevailing at the balance sheet date.
The components of net assets are translated into Japanese yen at their historical rates. Profit and loss accounts for the
fiscal year are translated into Japanese yen using the average exchange rate during the fiscal year. Differences in yen
amounts arising from the use of different rates are presented as “foreign currency translation adjustments” and “minority
interests” in the net assets.
(m) Inventories
Stated at cost mainly determined by the gross average method (Figures on the consolidated balance sheet are measured by
the method of book devaluation based on the reduction of profitability).
(n) Method of depreciation and amortization of significant depreciable assets
a. Property, plant and equipment (excluding lease assets)	����������������� Mainly declining balance method for The Company and domestic subsidiaries and mainly straight-line
method for foreign subsidiaries.
Main durable years are as follows:
Buildings and structures		
3 to 75 years
Machinery, equipment and vehicles 3 to 15 years
SUZUKI MOTOR CORPORATION 41

Consolidated Financial Statementsb. Intangible assets (excluding lease assets)	����������������� Straight-line method
c. Lease assets
Finance lease which transfer ownership	����������������� The same method as depreciation and amortization of self-owned noncurrent assets.
Finance lease which do not transfer ownership	����������������� Straight-line method with the lease period as the durable years. As to lease assets with guaranteed residual
value under lease agreement, remaining value is the guaranteed residual value. And as to other lease assets, remaining value would be zero.
(o) Income taxes
The provision for income taxes is computed based on the income before income taxes included in the consolidated statements of income. The assets and liability approach is adopted to recognize deferred tax assets and liabilities for the expected
future tax consequences of temporary differences between the carrying amounts and the tax bases of assets and liabilities.
In making a valuation for the possibility of collection of deferred tax assets, The Company and its subsidiaries estimate their future taxable income reasonably. If the estimated amount of future taxable income decrease, deferred tax assets may decrease
and income taxes expenses may be posted.
Consolidated tax payment has been applied to The Company and its domestic wholly owned subsidiaries since the fiscal
year ended 31 March 2012.
(p) Retirement benefits
With regard to calculation of retirement benefit obligations, benefit formula basis method was used to attribute expected
benefit to period up to the end of this fiscal year. With regard to past service costs, they are treated as expense on a straightline basis over the certain years within the period of average length of employees’ remaining service years at the time when it
occurs. As for the actuarial gain or loss, the amounts, prorated on a straight-line basis over the certain years within the periodof average length of employees’ remaining service years in each year in which the differences occur, are respectively treatedas expenses from the next term of the year in which they arise.
Retirement benefit cost and retirement benefit obligation are calculated based on the actuarial assumptions, which include
discount rate, assumed return of investment ratio, revaluation ratio, salary rise ratio, retirement ratio and mortality ratio. Discount rate is decided on the basis of yield on low-risk, long-term bonds, and assumed return of investment ratio is decided
based on the investment policies of pension assets of each pension system etc.
Decreased yield on long-term bond leads to a decrease in discount rate and has an adverse influence on the calculation ofretirement benefit cost. However, the pension system adopted by The Company has a cash balance type plan, and thus therevaluation ratio, which is one of the base ratios, can reduce adverse effects caused by a decrease in the discount rate.
If the investment yield of pension assets is less than the assumed return of investment ratio, it will have an adverse effect on
the calculation of retirement benefit cost. But by focusing on low-risk investments, this influence should be minimal in the caseof the pension fund systems of The Company and its subsidiaries.
(q) Net income per sharePrimary net income per share is computed based on the weighted average number of shares issued during the respective
years. Fully diluted net income per share is computed assuming that all stock options are exercised. Cash dividends per
share are the amounts applicable to the respective periods including dividends to be paid after the end of the period.
(r) Cash and cash equivalents
All highly liquid investments with original maturities of three months or less when purchased are considered cash equivalents.
(s) Reclassification
Certain reclassifications of previously reported amounts are made to conform to current classifications.

NOTE 3: Changes in accounting policies(a) Application of accounting standard for retirement benefits
Body text stipulated in article 35 of the Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan(ASBJ) Statement No.26 of 17 May 2012) and article 67 of the Guidance on Accounting Standard for Retirement Benefits (ASBJ
Guidance No.25 of 26 March 2015) have been applied from this consolidated fiscal year.
The revision of the calculation method for retirement benefit obligations and service costs, with the changing method of attributing benefits to accounting periods from the straight-line basis method to the benefit formula basis, and the changing methodof determination of the discount rate from the method of determination the bonds period by using the approximate number ofyears of the average remaining service period of employees which is based on determination of the discount rate to a single
weighted average discount rate reflecting the estimated timing and amount of benefit payment, have been applied from thisconsolidated fiscal year.
In accordance with transitional accounting as stipulated in article 37 of the Accounting Standard for Retirement Benefits, theeffect of the changes in accounting policies arising from initial application is recognized in retained earnings from the beginning of this consolidated fiscal year.
42 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

As a result, assets for retirement benefits decreased by ¥10,357 million, liabilities for retirement benefits increased by ¥1,885
million and retained earnings decreased by ¥8,118 million from the beginning of this consolidated fiscal year. Influences by
the above-mentioned on operating income and income before income taxes for this consolidated fiscal year are insignificant.
(b) New accounting standards not yet applied• Accounting Standard for Business Combinations (ASBJ Statement No.21 of 13 September 2013)• Accounting Standard for Consolidated Financial Statements (ASBJ Statement No.22 of 13 September 2013)• Accounting Standard for Business Divestitures (ASBJ Statement No.7 of 13 September 2013)• Accounting Standard for Earnings Per Share (ASBJ Statement No.2 of 13 September 2013)• Guidance on Accounting Standard for Business Combinations and Accounting Standard for Business Divestitures (ASBJ
Guidance No.10 of 13 September 2013)• Guidance on Accounting Standard for Earnings Per Share (ASBJ Guidance No.4 of 13 September 2013)
a. Overview
The accounting methods for difference arising from a change in ownership interest in a subsidiary when the Company continues to have control because of additional acquisition of shares of the subsidiary, treatment of acquisition-related costs,
expression of net income, etc. and expression of minority interests to non-controlling interests, provisional accounting treatments and others have been revised.
b. Application date
These accounting standards will be applied from the beginning of the consolidated fiscal year on and after 1 April 2015. Provisional accounting treatments will be applied to business combinations to be performed on and after 1 April 2015.
c. Effect of applying accounting standard
The effect in the consolidated financial statements as a result of the adoption of these accounting standards is currently
unconfirmed.

NOTE 4: Financial Instruments(a) Matters for conditions of financial instrumentsa. Policy for financial instruments
As for the fund management, The Group uses short-term deposits and short-term investment securities, and as for thefund-raising, The Group uses borrowings from financial institutions such as banks and issuance of bonds. The Group uses
derivatives to hedge and manage the risks of interest rates and exchange rates fluctuations, and does not use derivatives
for speculation purposes.
b. Type of financial instruments, risks and risk management
With respect to customers’ credit risks from operating receivables such as notes and accounts receivables-trade, in orderto mitigate the risks, The Group identifies credit standing of major counterparties and manages due date and receivablebalance of each counterparty in line with our rules and regulations for credit control. The Group hedges risks of exchange
rate fluctuations from operating receivables denominated in foreign currency by forward exchange contract in principle.
Investment securities are mainly stocks of companies with which The Group has business relationship, and as for listed
stocks, The Group quarterly identifies those fair values and reports them to the Board of Directors.
Basically, accounts payable-trade is due within one year.
Applications of borrowings are fund for operating capital (mainly short-term) and capital expenditures (long-term), and The
Group uses interest-rate swaps or cross currency interest rate swaps for the risks of fluctuation in interest rate and exchange rate of some long-term borrowings.
Objectives of derivative transactions are foreign currency forward contracts to hedge the risks of exchange rate fluctuations
related to receivables denominated in foreign currencies, interest rate swaps to hedge the risks of fluctuations in interest
rate related to borrowings, and cross currency interest rate swaps to hedge the risk of fluctuation in exchange rate andinterest rate related to borrowings. The Group executes and manages derivatives within the actual demand in line with ourrules and regulations which set out the authority to trade. In addition, in using derivatives, The Group deals with financial
institutions which have high credit grade in order to reduce credit risks. With respect to hedge accounting, also please see
Note 2 (k).
In addition, each company of The Group manages liquidity risk related to accounts payable and borrowings by making afinancial plan.
c. Supplement to fair values of financial instruments
Fair values of financial instruments include values based on quoted prices in active markets and values assessed by rational valuation techniques in case quoted prices are not available. Because the rational valuation techniques include variablefactors, the results of valuation may differ when different assumption is applied.

SUZUKI MOTOR CORPORATION 43

Consolidated Financial Statements(b) Matters for fair values of the financial instruments
Carrying amounts in the consolidated balance sheet, fair values and difference as of 31 March 2015 and 2014 were as follows. Financial instruments whose fair value cannot be reliably determined are not included in the below table.
Millions of yen
2014

2015

Cash and deposits
Notes and accounts receivables-trade
Short-term investment securities andInvestment securities
Available-for-sale securities
Investments in affiliates
Total of assets
Accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Accrued expenses
Long-term loans payable
Total of liabilities
Derivatives
Hedge accounting is applied
Hedge accounting is not applied

Carrying
amount¥457,513
316,826—
1,741

Carrying
amount¥358,851
310,694

Fair value

Difference¥457,513
318,567¥¥358,851
311,221¥—527

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

—
52
1,794
—
—
377
—
4,370
4,747

863,514513
1,533,573
433,819
197,413
38,748171,274
209,166
1,050,421

863,514252
1,533,838
433,819
197,413
38,779171,274
207,874
1,049,160

—
(261)
265
—
—
(31)
—
1,291
1,260

1,072
1,603

1,072
1,603

—
—

51
1,160

51
1,160

—
—

2015
Carrying
amount$3,807,223
2,636,483$3,807,223
2,650,976

8,382,687
5,131
14,831,524
3,993,925
1,479,615
866,650
1,508,005
2,269,426
10,117,623

8,382,687
5,572
14,846,458
3,993,925
1,479,615
863,511
1,508,005
2,233,061
10,078,119—
440
14,933——3,139—
36,36539,504

8,922
13,3398,922
13,339——Fair value

Difference$—
14,492* Assets or liabilities derived from derivatives are shown on a net basis and net liabilities are shown as ( ).

44 SUZUKI MOTOR CORPORATION

Difference

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

Thousands of US dollars

Cash and deposits
Notes and accounts receivables-trade
Short-term investment securities andInvestment securities
Available-for-sale securities
Investments in affiliates
Total of assets
Accounts payable-trade
Short-term loans payable
Current portion of long-term loans payable
Accrued expenses
Long-term loans payable
Total of liabilities
Derivatives
Hedge accounting is applied
Hedge accounting is not applied

Fair value

Consolidated Financial Statements*1. Matters for methods used to measure fair values of financial instruments
Assets:a. Cash and deposits
Because fair values of deposits are approximately equal to the book values, book values are used as fair values.
b. Notes and accounts receivables-trade
Fair values of sales finance receivables are calculated on the discount method by the expected rate applied to newloan contract, on each receivable classified into a certain term.
Notes and accounts receivables-trade except sales finance are settled in short term and those fair values are approximately equal to the book values. So book values are used as fair values.
c. Short-term investment securities and Investment securities
As to these fair values, fair values of stock are prices of exchanges. As to negotiable certificate of deposit and othertypes of securities, book values are used as fair values because they are settled in short term and those fair values
are approximately equal to the book values.
Liabilities:
a. Accounts payable-trade, Short-term loans payable and Accrued expenses
Because these are settled in short term and those fair values are approximately equal to the book values, such bookvalues are used.
b. Current portion of long-term loans payable and Long-term loans payable
These fair values are measured by discounting based on the estimated interest rates at which similar new loans withsame amount of principal and interest could have been borrowed.
Derivatives:
Please refer to Note 4 (d) Derivative transactions.
*2. Financial instruments whose fair value cannot be reliably determined as of 31 March 2015 and 2014
Thousands of
US dollars

Millions of yen

2015

2014

2015

Unlisted stock other than stocks of affiliates¥18,748¥18,747$156,013

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

23,084

17,077

192,098

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

119

557

997

Available-for-sale securitiesThose fair values cannot be reliably measured because market values are unavailable and future cash flows cannot be
estimated. So they are not included in “short-term investment securities and investment securities”.

SUZUKI MOTOR CORPORATION 45

Consolidated Financial Statements*3. The amounts to be redeemed after the account settlement date of monetary receivables and available-for-sale securities
Millions of yen
2014

2015
Within1 yearCash and deposits
Notes andaccounts receivables- trade
Securities and investment
securities with maturities
Total

Over 1 year,
Within5 years

Over 5 years,
Within
10 years—¥ —¥ 358,851

241,373

75,017435

685,647¥1,384,534—¥75,017—¥435¥ 457,513¥

Thousands of US dollars
2015
Within1 yearCash and deposits
Notes andaccounts receivables- trade
Securities and investment
securities with maturities
Total

46 SUZUKI MOTOR CORPORATION

Within1 year$ 3,807,223

Over 1 year,
Within5 years$—

Over 5 years,
Within
10 years$—

2,008,598

624,264

3,619

5,705,647$11,521,469—$624,264—$3,619Over 1 year,
Within5 years¥

Over 5 years,
Within
10 years—¥ —249,336

60,831

526

612,489¥1,220,677—¥60,831—¥526

Consolidated Financial Statements(c) Securities
a. Available-for-sale securities with market value as of 31 March 2015 and 2014
Millions of yen

2015
Acquisition
cost

2014

Carrying
AmountDifference

Acquisition
cost

Carrying
AmountDifference¥ 226,859¥ 91,865¥250,014¥158,148

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

¥ 93,769¥ 320,628

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

—

—

—

—

—

—

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

249,238

263,329

14,090175,441

181,767

6,325

Sub-Total¥343,008¥ 583,957¥ 240,949¥267,307¥431,782¥164,474¥¥¥

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

¥

1,549

¥

1,191

¥

(358)

1,928

1,567

(361)

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

—

—

—

5,000

5,000

—

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

422,198

422,198—

425,164

425,164—

Sub-Total¥423,748¥ 423,389

¥

(358)

¥432,093¥431,732¥

Total¥766,756¥1,007,347¥ 240,591¥699,401¥863,514¥164,113(361)

Thousands of US dollars

2015
Acquisition
cost

Carrying
AmountDifference

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

$ 780,304 $ 2,668,124

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

$1,887,819

—

—

—

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

2,074,052

2,191,308

117,255

Sub-Total$ 2,854,357 $ 4,859,432$2,005,075

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

$

12,898$—9,913 $

(2,984)——

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

3,513,341

3,513,341

Sub-Total$ 3,526,239$3,523,254 $Total$ 6,380,596 $ 8,382,687—(2,984)$2,002,090

b. Available-for-sale securities sold during 2015 and 2014
Thousands of
US dollars

Millions of yen

2014

2015

2015

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

¥206,255¥165,779$1,716,364

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

—

17

—

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

—

0

—

SUZUKI MOTOR CORPORATION 47

Consolidated Financial Statements(d) Derivative transactions
The contract/notional amounts of derivatives which are shown in the below table do not represent The Group’s exposure tomarket risk. As to fair values of derivatives which are shown in the below tables, commodity transactions are valued based onmarket price. Other transactions are valued based on the price offered by financial institutions.
a. Derivative transactions to which hedge accounting is not applied as of 31 March 2015 and 2014
Millions of yen

Currency related transactions (non-market transactions)
2014

2015
Type
Foreign currency
forward contracts
Buying
USD
EUR
JPY
Total

Contract/
notional
amountAmountdue after
one year

Fair value¥ 3,746
1,694
14,550¥19,990

—
—
—
—

¥394
(16)
(43)
¥333

Gain
(loss)

¥394
(16)
(43)
¥333

Contract/
notional
amountAmountdue after
one year

Fair value¥17,687—
11,405¥29,093————¥(142)—(262)¥(404)

Gain(loss)¥(142)—(262)¥(404)

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

Contract/
notional
amount2015
Amountdue after
Fair value
one year$31,175
14,098121,079$166,352————$3,279(138)(362)$2,778Gain(loss)$3,279(138)(362)$2,778Interest and currency related transactions (non-market transactions)
TypeInterest rate swap
Pay fixed
receive floating
Pay PHP
receive USD
Cross currencyinterest rate swap
Pay floatingreceive floating
Pay INR
receive USD
Pay fixed
receive floating
Pay IDR
receive USD
Pay fixed
receive floating
Pay IDR
receive JPY
Total

48 SUZUKI MOTOR CORPORATION

Contract/
notional
amount¥—2015
Amountdue after
Fair value
one year

¥

—

¥

—

Millions of yen
2014
Amountdue after
Fair value
one yearGain(loss)

Contract/
notional
amount¥—¥1,200

¥

—

¥

84

Gain
(loss)

¥

84

5,568

2,784

1,323

1,323

7,153

4,769

1,536

1,536

12,017

12,017

0

0

—

—

—

—

10,000¥27,585

10,000¥24,801(0)¥1,323(0)¥1,323—¥8,353—¥4,769—¥1,620—¥1,620Consolidated Financial Statements

Thousands of US dollars
2015
Type
Cross currencyinterest rate swap
Pay floatingreceive floating
Pay INR
receive USD
Pay fixed
receive floating
Pay IDR
receive USD
Pay fixed
receive floating
Pay IDR
receive JPY
Total

Contract/
notional
amountAmountdue after
one year

Fair value

Gain(loss)$ 46,340$ 23,170$11,012$11,012

100,000

100,0000083,215$229,555

83,215$206,385(0)$11,012(0)$11,012
Millions of yen

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

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

¥(54)
¥(54)

—
—

Gain
(loss)

¥(54)
¥(54)

Contract/
notional
amount¥4,545¥4,5452014
Amountdue after
Fair value
one year
—
—

¥(55)
¥(55)

Gain
(loss)

¥(55)
¥(55)

Thousands of US dollars
2015
Type
Commodity
Futures contract
Buying
Total

Contract/
notional
amountAmountdue after
one year

Fair value$10,854$10,854——$(450)$(450)

Gain(loss)$(450)$(450)

Earthquake-related transactions
Fair values for derivative contract relating to earthquakes were not measured due to characteristic of instruments. So they are
not accounted for at fair values.

SUZUKI MOTOR CORPORATION 49

Consolidated Financial Statements

b. Derivative transactions to which hedge accounting is applied as of 31 March 2015 and 2014
Currency related transactions

Millions of yen

2014
2015
Type
Contract/
Amount due
Contract/
Amount due
Fair value
notional amount after one year
notional amount after one year
Foreign currency forward contracts (Principle hedge accounting)Selling (Principal hedged item: Account receivable-trade)USD¥ 3,847—¥ 8,034
—
¥ 42
EUR
1,367
—
21,695
—
1,012
CAD
80
—
414
—
11
AUD
3,265
—
4,528
—
141
NZD
1,256
—
1,236
—
3
GBP
221
—
40
—
1
MXN
827
—
1,518
—
14
Buying (Principal hedged item: Account payable-trade)
USD
70
—
—
—
—
EUR
7,225
—
11,083—(88)
Foreign currency forward contracts (Exceptional hedge accounting)Selling (Principal hedged item: Account receivable-trade)
USD
616
—
—
—
*
EUR
8,947
—
19,354
—
*
CAD
15
—
51
—
*
AUD
2,039
—
2,883
—
*
NZD
350
—
375
—
*
GBP
301
—
40
—
*
MXN
691
—
492
—
*
CNY
56
—
720
—
*
Buying (Principal hedged item: Account payable-trade)
USD
—
—
3,649
—
*
EUR
679
—
2,726
—
*
JPY
—
—
895
—
*
Total
¥31,862—¥79,742—¥1,139Thousands of US dollars
2015
Type
Contract/
Amount due
Fair value
notional amount after one year
Foreign currency forward contracts (Principle hedge accounting)Selling (Principal hedged item: Account receivable-trade)
USD$ 66,856
—
$ 354
EUR
180,537
—
8,424
CAD
3,447
—
95
AUD
37,687—
1,180
NZD
10,292
—
25
GBP
334
—
10
MXN
12,635—124
Buying (Principal hedged item: Account payable-trade)
EUR
92,235—(734)
Foreign currency forward contracts (Exceptional hedge accounting)Selling (Principal hedged item: Account receivable-trade)
EUR
161,061
—
*
CAD
426
—
*
AUD
23,995
—
*
NZD
3,126
—
*

50 SUZUKI MOTOR CORPORATION

Fair value¥ (35)
(7)
0
(95)
(40)
(1)
(6)
2
(3)

*
*
*
*
*
*
*
*
*
*
*
¥(188)

Consolidated Financial Statements

GBP
336
—
MXN
4,101
—
CNY
5,993
—
Buying (Principal hedged item: Account payable-trade)
USD
30,370—EUR
22,688
—
JPY
7,454
—
Total
$663,581
—

*
*
*
*
*
*
$9,481* Because these foreign currency forward contracts are handled together with hedged items, their fair values are included in that of hedged items.

Interest and currency related transactions

Millions of yen

2014
2015
Contract/
Amount due
Contract/
Amount due
Fair value
notional amount after one year
notional amount after one year
Interest rate swap (Principle hedge accounting)
Pay fixed
Long-term
receive floating debt¥—¥—
¥ 63,500¥ 63,500¥(32)
Cross currency interest rate swap (Principle hedge accounting)
Pay fixed
receive floating
Pay JPY
121,243
121,243
receive USD———
Pay fixed
receive floating Long-term
Pay IDR
debt
receive USD
3,782
2,319
8,919
4,026
(18)
Pay fixed
receive floating
Pay THB
receive USD
12,94012,94014,962
14,962(16)
Cross currency interest rate swap (Integration hedge accounting)
Pay fixed
receive floating Long-term
Pay JPY
debt
receive USD——
98,00098,000*
Pay fixed
receive floating
Pay CNY
Long-term
receive JPY
—
—
243
243
*
debt
Pay fixed
receivable
receive floating
Pay INR
receive USD
—
—
2,913
2,913
*
Total
¥137,965¥136,502¥188,538¥183,645
¥(67)
Type

Principal
hedged item

Fair value

¥ —

(73)

2

311

—

—

—
¥240

Thousands of US dollars
2015
Contract/
Amount due
notional amount after one year
Interest rate swap (Principle hedge accounting)
Pay fixed
Long-term$528,418$528,418
receive floating debt
Cross currency interest rate swap (Principle hedge accounting)
Pay fixed
receive floating Long-term
74,22533,506
Pay IDR
debt
receive USD
Type

Principal
hedged item

Fair value$ (274)(149)

SUZUKI MOTOR CORPORATION 51

Consolidated Financial Statements

Pay fixed
receive floating Long-term
124,507
124,507
Pay THB
debt
receive USD
Cross currency interest rate swap (Integration hedge accounting)
Pay fixed
receive floating Long-term
815,511815,511
Pay JPY
debt
receive USD
Pay fixed
receive floating
2,022
2,022
Pay CNY
Long-term
receive JPY
debt
Pay fixed
receivable
receive floating
24,24824,248
Pay INR
receive USD
Total$1,568,932$1,528,214

(135)

*

*

*
$(559)* Because these cross currency interest rate swap transactions are handled together with hedged items, their fair values are included in that ofhedged items.

NOTE 5: Short-term debt and long-term debt
Short-term debt as of 31 March 2015 and 2014 were as follows. The annual interest rates of short-term debt as of 31 March 2015 were from 0.15
percent to 10.5 percent.
Thousands of
US dollars

Millions of yen

2015

2014

2015

¥281,950¥236,161$2,346,265

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

43

46

365

¥281,994¥236,207$2,346,631

Long-term debt as of 31 March 2015 and 2014 were as follows:
Thousands of
US dollars

Millions of yen

2014

2015

2015

Long-term loans payable maturing through 2020
Secured...............................................................................

¥

—

¥

236

$

—

Unsecured..........................................................................

272,717

208,930

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

49

72

408

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

13,731

13,655

114,270¥286,497¥222,894$2,384,104

2,269,426

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

52 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

The aggregate annual maturities of long-term debt, excluding other interest-bearing debt, outstanding as of 31 March 2015 were as follows:
Millions of yen

Thousands of
US dollars

2017........................................................................................

¥ 46,879$ 390,1082018........................................................................................

90,725754,975

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

50,160417,4132020........................................................................................

8,000

66,577

Year ending 31 March

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

77,000640,758¥272,766$2,269,834

Millions of yen

Thousands of
US dollars¥643$5,352

Assets pledged as collateral as of 31 March 2015:

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

97

807

¥740

$6,160Millions of yen

Thousands of
US dollars¥448$3,734

Secured liabilities as of 31 March 2015:

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

NOTE 6: Loan commitment
The Company has the commitment line contract with five banks for effective financing. The outstanding balance of this contract as of 31
March 2015 and 2014 were as follows:
Thousands of
US dollars

Millions of yen

2014

2015

2015

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

¥200,000¥200,000$1,664,308

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

—

—

—

¥200,000¥200,000$1,664,308

VarianceSUZUKI MOTOR CORPORATION 53

Consolidated Financial Statements

NOTE 7: Retirement and severance benefit(Year ended 31 March 2014)
1 Outline of adopted retirement benefit systems
As for The Company, cash balance corporate pension plan and lump-sum retirement benefit plan are established. And as for someof consolidated subsidiaries, defined benefit corporate pension plan and lump-sum retirement benefit plan are established. As forsome foreign consolidated subsidiaries, defined contribution plan are established.
Some consolidated subsidiaries adopt simplified methods for the calculation of retirement benefits.
2 Defined benefit plan(a) Reconciliation of retirement benefit obligation from the opening balance to the closing balance
Millions of yen

Opening balance of retirement benefit obligation¥108,739

Service cost

6,024Interest cost

2,199

Actuarial differences arised in current fiscal year

(611)

Retirement allowance paid

(4,940)

Past service cost arised in current fiscal year

159

OthersClosing balance of retirement benefit obligation(475)¥111,096(b) Reconciliation of pension assets from the opening balance to the closing balance
Millions of yen

Opening balance of pension assets¥83,842

Expected return on pension assets

825

Actuarial differences arised in current fiscal year

808

Contribution from employers

8,028

Retirement allowance paid

(3,512)OthersClosing balance of pension assets

48¥90,040(c) Reconciliation between closing balance of retirement benefit obligation and pension assets and net amount of liability/asset for
retirement benefits recognized in consolidated balance sheet
Millions of yen

Defined benefit obligation of funded severance plan

¥82,668

Plan asset(90,040)(7,371)

Defined benefit obligation of unfunded severance plan

28,427

Net amount of liability and asset for retirement benefits
recognized in consolidated balance sheet¥21,056

Liability for retirement benefits¥36,918

Asset for retirement benefits(15,862)

Net amount of liability and asset for retirement benefits
recognized in consolidated balance sheet¥21,056(d) Breakdown of retirement benefit expenses
Millions of yen

Service cost

¥6,024

Interest cost

2,199

Expected return on plan assets(825)

Recognition of actuarial gains and losses

527

Amortization of past service cost

(636)

Others(656)

Total amount of retirement benefit expenses for defined
benefit plans
54 SUZUKI MOTOR CORPORATION¥6,633

Consolidated Financial Statements(e) Accumulated adjustment for retirement benefit
Breakdown of accumulated adjustment for retirement benefit recognized were as follows:
Millions of yen

Unrecognized past service cost

¥3,276

Unrecognized actuarial gains and losses

2,742

Total

¥6,018(f) Plan assets
a. Major breakdown of pension assets
Portion of major components to total pension assets were as follows:
Debt securities

51.1%

General account of life insurance companies

38.0%

Others

10.9%

Total

100.0%

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

3

Discount rate

2.00%

Expected long-term return on pension assets

0.82%

Defined contribution plan
Contribution to defined contribution plan by The Company and consolidated subsidiaries was 216 million yen.

(Year ended 31 March 2015)
1. Outline of adopted retirement benefit systems
As for The Company, cash balance corporate pension plan and lump-sum retirement benefit plan are established. And as forsome of consolidated subsidiaries, defined benefit corporate pension plan and lump-sum retirement benefit plan are established. As for some foreign consolidated subsidiaries, defined contribution plan are established.
Some consolidated subsidiaries adopt simplified methods for the calculation of retirement benefits.
2. Defined benefit plan(a) Reconciliation of retirement benefit obligation from the opening balance to the closing balance
Millions of yen

Opening balance of retirement benefit obligation¥111,096

Thousands of
US dollars$ 924,494

Cumulative effects of changes in accounting

12,243

101,882

Opening balance reflected changes in accounting¥123,339$1,026,377

Service cost

6,638

55,245Interest cost

1,681

13,994886

7,378

Retirement allowance paid

(4,751)(39,542)

Past service cost arised in current fiscal year

5,322

44,294301

2,505¥133,418$1,110,251

Actuarial differences arised in current fiscal year

OthersClosing balance of retirement benefit obligation

SUZUKI MOTOR CORPORATION 55

Consolidated Financial Statements(b) Reconciliation of pension assets from the opening balance to the closing balance
Millions of yen

Thousands of
US dollars

Opening balance of pension assets¥90,040$749,273

Expected return on pension assets

1,000

8,322

Actuarial differences arised in current fiscal year

454

3,785

Contribution from employers

5,905

49,142Retirement allowance paid

(3,364)(27,993)

OthersClosing balance of pension assets

451

3,755

¥94,487$786,285(c) Reconciliation between closing balance of retirement benefit obligation and pension assets and net amount of liability/asset
for retirement benefits recognized in consolidated balance sheet
Millions of yen

Thousands of
US dollars

Defined benefit obligation of funded severance plan

¥95,065$791,090

Plan asset(94,487)(786,285)

577

4,804

Defined benefit obligation of unfunded severance plan

38,353319,161

Net amount of liability and asset for retirement benefits
recognized in consolidated balance sheet¥38,930$323,965

Liability for retirement benefits¥40,791$339,450

Asset for retirement benefits(1,860)(15,484)¥38,930$323,965

Net amount of liability and asset for retirement benefits
recognized in consolidated balance sheet(d) Breakdown of retirement benefit expenses

Millions of yen

Thousands of
US dollars

Service cost

¥6,638$55,245

Interest cost

1,681

13,994

Expected return on plan assets(1,000)(8,322)

Recognition of actuarial gain and losses

992

8,262

Amortization of past service cost

117

981

Others46

384¥8,477$70,546

Total amount of retirement benefit expenses for defined
benefit plans(e) Adjustment for retirement benefit
Breakdown of adjustment for retirement benefit recognized were as follows:
Millions of yen

Past service cost
Actuarial gains and losses
Total¥(5,140)

Thousands of
US dollars$(42,780)

616

5,129

¥(4,524)$(37,650)(f) Accumulated adjustment for retirement benefit
Breakdown of accumulated adjustment for retirement benefit recognized were as follows:
Millions of yen

Unrecognized past service costThousands of
US dollars¥(1,864)$(15,513)

Unrecognized actuarial gains and losses

3,344

27,828

Total¥1,479$12,31456 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements(g) Plan assets
a. Major breakdown of pension assets
Portion of major components to total pension assets were as follows:
Debt securities

49.0%

General account of life insurance companies

37.9%

Others

13.1%

Total

100.0%

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

1.12%

Expected long-term return on pension assets

0.88%

3. Defined contribution plan
Contribution to defined contribution plan by The Company and consolidated subsidiaries was 231 million yen(1,926 thousand US dollars).

NOTE 8: Income taxes
Breakdown of deferred tax assets and deferred tax liabilities by their main occurrence causes were as follows:
Thousands of
US dollars

Millions of yen

2015

2014

2015

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

¥ 57,418¥ 59,105$ 477,811

Various reserves..................................................................

37,25439,548310,017

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

24,197

20,876201,359

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

14,265

12,254

118,713

Deferred tax assets

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

3,579

3,367

29,787

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

75,36282,757627,134

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

212,078

217,910

1,764,824

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

(39,996)(54,930)(332,832)

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

¥172,082¥162,980$1,431,991

Deferred tax liabilities
Valuation difference on available-for-sale securities.........

¥(76,700)¥ (56,219)$(638,265)

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

(5,811)(5,243)(48,357)(28,713)

Reserve for advanced depreciation of noncurrent assets....

(3,450)(3,603)

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

(1,076)(2,071)(8,959)Deferred tax liabilities total...............................................

(87,038)(67,138)(724,296)

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

¥ 85,043¥ 95,841$ 707,695

The differences between the statutory tax rate and the effective tax rate were summarized as follows:
2014

2015
Statutory tax rate.....................................................................

—

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

—

37.2%
3.1%

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

—(3.3%)Tax rate difference (consolidated overseas subsidiaries).

—(2.0%)

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

—

0.3%

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

—

35.3%

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

SUZUKI MOTOR CORPORATION 57

Consolidated Financial Statements

NOTE 9: Research and development costs
Research and development costs included in selling, general and administrative expenses, for the years ended 31 March 2015 and 2014
were as follows:
Thousands of
US dollars

Millions of yen

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

2015

2014

2015

¥125,896¥127,090$1,047,655

NOTE 10: Cash and cash equivalents
Cash and cash equivalents as of 31 March 2015 and 2014 were as follows:
Thousands of
US dollars

Millions of yen

2015

2014

2015

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

¥457,513¥358,851$3,807,223

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

685,647

612,489

5,705,647

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

(18,012)(73,370)(149,888)

Bonds etc. with redemption period of over three months.

(192,888)(187,359)(1,605,126)¥932,261¥710,611$7,757,854

NOTE 11: Net assets
The Companies Act of Japan requires that at least 50% of the contribution of new shares be included in capital stock. The
portion to be recorded as capital stock is determined by resolution of the meeting of the Board of Directors. Proceeds inexcess of the capital stock should be credited to “legal capital surplus”.
The Companies Act provides that an amount equivalent to 10% of cash dividends should be appropriated as a legal capitalsurplus or legal retained earnings until total amount of them reaches a certain limit, defined as 25% of the capital stock.
The Companies Act allows both legal capital surplus and legal retained earnings to be transferred to the capital stock
following the approval at an Ordinary General Meeting of Shareholders.
The legal retained earnings of The Company and its subsidiaries are included in “retained earnings” on the consolidatedbalance sheet and are not shown separately.
According to the Companies Act, the articles of incorporation allow to repurchase treasury stock and dispose of suchtreasury stock by resolution of meeting of the Board of Directors.

NOTE 12: Other comprehensive income
Other comprehensive income as of 31 March 2015 and 2014 were as follows:
Thousands of
US dollars

Millions of yen

2015

2014

2015

¥77,327¥73,280$ 643,480

Valuation difference on available-for-sale securities
Unrealized loss (gain) arising during the period...............
Reclassification adjustment of unrealized gain (loss)
through profit or loss...........................................................

—

40

—

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

77,32773,320643,480

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

(19,592)(25,724)(163,043)

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

¥57,734¥47,596$ 480,437¥ 965¥ (4,119)$

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

8,034

Reclassification adjustment of unrealized gain (loss)
through profit or loss...........................................................

75

1,785

628

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

1,041(2,333)

8,662

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

(453)

1,136

(3,777)58 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

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

587¥ (1,196)$ 4,884

Unrealized loss (gain) arising during the period...............

¥ 46,774¥27,748$ 389,233

Reclassification adjustment of unrealized gain (loss)
through profit or loss...........................................................

—

(192)

—

¥ 46,774¥27,555$ 389,233

Unrealized loss (gain) arising during the period...............

¥ (5,176)¥—$ (43,072)

Reclassification adjustment of unrealized gain (loss)
through profit or loss...........................................................

651

—

5,422

¥

Foreign currency translation adjustment

Balance at the end of the period
Adjustment for retirement benefit

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

(4,524)—(37,650)

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

1,518

—

12,637

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

¥ (3,005)—$ (25,012)

3,489¥ 7,504$ 29,038¥105,579¥81,459$ 878,581¥

Share of other comprehensive income of associates
accounted for using equity method
Unrealized loss (gain) arising during the period¥

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

NOTE 13: Cash dividends
Resolution
Ordinary General
Meeting of Shareholders
held on 27 June 2014
Total amount of cash dividends
Cash dividends per share

Meeting of theBoard of Directors
held on 6 November 2014

¥7,854 million$65,362 thousand¥5,610 million$46,687 thousand¥14.00$0.12¥10.00$0.08

Record date

31 March 2014

30 September 2014

Effective date

30 June 2014

28 November 2014

Dividends which record date was in the current consolidated fiscal year and effective date was in the next fiscal year:
Resolution
Ordinary General
Meeting of Shareholders
held on 26 June 2015
Total amount of cash dividends
Cash dividends per share¥9,537 million$79,368 thousand¥17.00$0.14

Record date

31 March 2015

Effective date

29 June 2015

SUZUKI MOTOR CORPORATION 59

Consolidated Financial Statements

NOTE 14: Stock option plan
The Company adopts stock option plan by using subscription rights to shares.
The plan was adopted at the Ordinary General Meeting of Shareholders and meeting of the Board of Directors held on 28 June 2012, 27
June 2013 and 27 June 2014 based on The Company Act of Japan.
The details of the plan were as follows:
1. Resolution date
28 June 2012
2. Category and number of people to whom stock options are granted
10 Directors of The Company (excluding Outside Directors)
6 Managing Officers who do not concurrently serve as Directors
3. Class of shares that are the subject of subscription rights to shares
Common stock of The Company
4. Number of shares
67,000 shares
5. Amount to be paid for subscription rights to shares
1 yen per 1 share
6. Period during which subscription rights to shares can be exercised
From 21 July 2012 to 20 July 2042
7. Terms of exercise of subscription rights to shares(1) A person who is allocated subscription rights to shares shall be able to exercise share subscription rights only up until
10th day (the next business day if the 10th day falls on a non-business day) from the day immediately following the dateof resignation as The Company’s Director as well as the Senior Managing Officer or Managing Officer without the role of
Director being served concurrently.
(2) If a person who is allocated subscription rights to shares was dead, heir may exercise the rights.
8. Matters relating to assignment of subscription rights to shares
The acquisition of subscription rights to shares by assignment shall require the approval of the Board of Directors of The
Company.
9. Matters relating to subrogation payment
None

1. Resolution date
27 June 2013
2. Category and number of people to whom stock options are granted
7 Directors of The Company (excluding Outside Director)
10 Senior Managing Officers and Managing Officers who do not concurrently serve as Directors
3. Class of shares that are the subject of subscription rights to shares
Same to the plan adopted at 28 June 2012
4. Number of shares
42,000 shares
5. Amount to be paid for subscription rights to shares
Same to the plan adopted at 28 June 2012
6. Period during which subscription rights to shares can be exercised
From 20 July 2013 to 19 July 2043
7. Terms of exercise of subscription rights to shares
Same to the plan adopted at 28 June 2012
8. Matters relating to assignment of subscription rights to shares
Same to the plan adopted at 28 June 2012
9. Matters relating to subrogation payment
Same to the plan adopted at 28 June 2012

60 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

1. Resolution date
27 June 2014
2. Category and number of people to whom stock options are granted
6 Directors of The Company (excluding Outside Director)
6 Managing Officers who do not concurrently serve as Directors
3. Class of shares that are the subject of subscription rights to shares
Same to the plan adopted at 28 June 2012
4. Number of shares
32,400 shares
5. Amount to be paid for subscription rights to shares
Same to the plan adopted at 28 June 2012
6. Period during which subscription rights to shares can be exercised
From 23 July 2014 to 22 July 2044
7. Terms of exercise of subscription rights to shares
Same to the plan adopted at 28 June 2012
8. Matters relating to assignment of subscription rights to shares
Same to the plan adopted at 28 June 2012
9. Matters relating to subrogation payment
Same to the plan adopted at 28 June 2012

NOTE 15: Contingent liabilities
As of 31 March 2015 and 2014, The Company and some of consolidated subsidiaries had the contingent liabilities as follows:
Thousands of
US dollars

Millions of yen

2015
Guarantee of indebtedness of affiliates and others..........

¥10,425

2014

2015

¥8,277$86,756

NOTE 16: Segment Information
1. Outline of reportable segments
The reportable segments of The Company are the components of The Company business for which discrete financial information is available, and whose operating results are regularly reviewed by our decision-making body such as Board of Directors
to make decisions about resources to be allocated to the segment and to assess its performance.
The Group has three reportable segments of “Motorcycle”, “Automobile” and “Marine and Power products, etc.” based on theform of management organization and nature of products and services.
Main products and services of each segment are as follows:
Segment

Main products and services

Motorcycle

Motorcycles, All-terrain vehicles

Automobile

Minivehicles, Sub-compact vehicles, Standard-sized vehicles

Marine and Power products, etc.

Outboard motors, Engines for snowmobiles, etc., Electro senior vehicles, Houses

2. Methods of measurement for the amounts of net sales, profit or loss, assets and other items for each reportable segment
The accounting policies of the reportable segments are consistent to the description of the “Summary of significant accounting
policies” (Note2).

SUZUKI MOTOR CORPORATION 61

Consolidated Financial Statements

3. Information about the amounts of net sales, profit or loss, assets and other items by reportable segment (Years ended 31 March)Millions of yen

2015
Motorcycle

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

Automobile

Marine & Powerproducts, etc.

Adjustment

Consolidated¥250,485(675)¥2,701,942
171,827¥63,033
8,272

¥

—
—

¥3,015,461
179,424

203,256

1,893,036

45,1591,111,348

3,252,800

8,504
639
—

124,686
1,757
969

1,186
122
—

—
—
—

134,377
2,519
969

15,08945,346

82—

60,5198,356

184,785

1,314—

194,457

Millions of yen

2014
Motorcycle

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

Automobile

Marine & Powerproducts, etc.

Adjustment

Consolidated¥——¥2,938,314
187,747¥266,602
105¥2,615,664
179,296¥56,046
8,346

222,413

1,649,071

42,668959,9212,874,074

7,268
453
128

109,024
1,609
900

896
101
0

—
—
—

117,188
2,164
1,029

15,33540,27687—

55,69922,847

189,604

1,167—

213,619

Thousands of US dollars

2015
Motorcycle

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

62 SUZUKI MOTOR CORPORATION

Automobile$2,084,427 $22,484,333(5,621)
1,429,874

Marine & Powerproducts, etc.

$ 524,537
68,8391,691,409

15,752,987

375,796

70,771

1,037,582

5,324—

14,625
8,067

125,569
69,540Adjustment$

Consolidated— $25,093,298—
1,493,091

9,248,132

27,068,326

9,874

—

1,118,228

1,017
—

—
—

20,9688,067

377,356686—

503,6121,537,702

10,942—

1,618,185

Consolidated Financial Statements(Reference information)
As reference information, operating results by geographical areas were as follows:(a) The amount of net sales, operating income or loss based on location of
The Company and its consolidated subsidiaries (Years ended 31 March)Millions of yen

2015
Japan

Europe

Asia

Other
areas

Eliminations

Consolidated¥158,151¥¥3,015,461

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

¥1,317,659¥306,156¥1,233,494—

447,311

129,982

72,7361,029(651,059)—

1,764,970

436,139

1,306,230

159,181(651,059)

3,015,461

90,718

5,116

81,607

2,620

(637)

179,424

Millions of yen

2014
Japan

Europe

Asia

Other
areas

Net sales to external customers....

¥1,309,383¥ 360,465¥1,118,169¥ 150,296

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

392,284

16,00057,185

1,701,667

376,466

134,513

4,154

Eliminations

Consolidated¥—¥2,938,314

679(466,149)—

1,175,355

150,975(466,149)

2,938,314

59,419241(10,582)

187,747

Net Sales:

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

Thousands of US dollars

2015
Japan

Europe

Other
areas

Asia

Eliminations

Consolidated

Net sales:
Net sales to external customers.... $10,964,960$2,547,693 $10,264,578

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

3,722,322

1,081,657

605,276

8,566

14,687,283

3,629,350

10,869,854

1,324,632

754,915

42,573

679,10221,802

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

$1,316,066 $— $25,093,298(5,417,822)—(5,417,822) 25,093,298(5,302)

1,493,091* “Other areas” consists principally of North America, Oceania and South America.

SUZUKI MOTOR CORPORATION 63

Consolidated Financial Statements(b) The amount of net sales based on external customers (Years ended 31 March)Millions of yen

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

Japan

India

Others¥1,094,611¥787,560¥1,133,289

Consolidated¥3,015,461

Millions of yen

2014
Net sales........................................

Japan

India

Others¥1,132,732¥638,720¥1,166,861

Consolidated¥2,938,314

Thousands of US dollars

2015
Japan

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

64 SUZUKI MOTOR CORPORATION$9,108,860

India$6,553,717

OthersConsolidated$9,430,720$25,093,298

Consolidated Financial Statements

Independent Auditor’s Report
To the Board of Directors of
Suzuki Motor Corporation
We have audited the accompanying consolidated financial statements of Suzuki Motor Corporation and its subsidiaries, which comprise the consolidated balance sheet as at 31 March 2015, and the consolidated statementof income, statement of comprehensive income, statement of changes in net assets and statement of cash
flows for the year then ended, all expressed in Japanese Yen, and a summary of significant accounting policies
and other explanatory information.
Management’s Responsibility for the Consolidated Financial Statements
Management is responsible for the preparation and fair presentation of these consolidated financial statementsin accordance with accounting principles generally accepted in Japan, and for such internal control as management determines is necessary to enable the preparation of consolidated financial statements that are freefrom material misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these consolidated financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in Japan. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated
financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
consolidated financial statements. The procedures selected depend on the auditor’s judgment, including theassessment of the risks of material misstatement of the consolidated financial statements, whether due to fraud
or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the consolidated financial statements in order to design audit procedures that areappropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of theentity’s internal control. An audit also includes evaluating the appropriateness of accounting policies used andthe reasonableness of accounting estimates made by management, as well as evaluating the overall presentation of the consolidated financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinion.
OpinionIn our opinion, the consolidated financial statements referred to above present fairly, in all material respects, theconsolidated financial position of Suzuki Motor Corporation and its consolidated subsidiaries as at 31 March
2015, and the consolidated results of their operations and their cash flows for the year then ended in accordance with accounting principles generally accepted in Japan.
The amounts expressed in US dollars, which are provided solely for the convenience of the reader, have beentranslated on the basis set forth in Note 1 to the accompanying consolidated financial statements.

Seimei Audit Corporation
Tokyo, Japan
26 June 2015

SUZUKI MOTOR CORPORATION 65

Company Outline
1. Company NameSUZUKI MOTOR CORPORATION

2. Date of Incorporation

March 1920
June 1954
October 1990

3. Head Office

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

300 Takatsuka-cho, Minami-ku, Hamamatsu-shi, Shizuoka 432-8611 Japan
Mailing Address : Hamamatsu-Nishi, P.O.Box 1 Naka-ku, Hamamatsu-shi, Shizuoka, Japan
Website Address : http://www.globalsuzuki.com

4. Main Products

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

5. Fiscal Year-End

31 March

6. Public Accounting Firm

Seimei Audit Corporation

7. Capital and Shareholders
Capital(as of 31 March, 2015)¥138,014 million

Total number of authorized shares

1,500 million

Total number of shares issued

561,047,304

Number of shareholders

33,311

Stock Listing

Tokyo Stock Exchange

Securities Code7269

Ordinary General Meeting of Shareholders

June

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

Shareholders’ Register Manager

Sumitomo Mitsui Trsut Bank, Limited
1-4-1, Marunouchi, Chiyoda-ku, Tokyo<Ten Major Shareholders>Number of Shares Held

Shareholding Ratio

Volkswagen AG

111,610

19.9

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

22,8694.1

Tokio Marine & Nichido Fire Insurance Co., Ltd.

17,961

3.2

Japan Trustee Services Bank, Ltd. (Trust Account)

16,485

2.9

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

16,0002.9

The Shizuoka Bank, Ltd.

14,500

2.6

Resona Bank, Ltd.

13,000

2.3

JP Morgan Chase Bank 380055

9,429

1.7

Sompo Japan Nipponkoa Insurance Inc.

7,761

1.4

Nippon Steel & Sumitomo Metal Corporation

7,759

1.4

Name of Shareholder(Thousands of Shares)(%)(Note) *1. Number of shares disregards and rounds off figures of less than 1,000 shares.
*2. Our Company holds 7,248 of treasury stocks.
*3. Shareholding ratio is calculated eliminating treasury stocks held by our Company.

66 SUZUKI MOTOR CORPORATION

Company Outline

Suzuki Group

Subsidiaries: 133 companies (68 in domestic, 65 in overseas)   Affiliates: 35 companies(1) Major Domestic Subsidiaries[Manufacturing Subsidiaries]
Suzuki Auto Parts Mfg. Co., Ltd.
Suzuki Akita Auto Parts Mfg. Co., Ltd.
Snic Co., Ltd.
Suzuki Toyama Auto Parts Mfg. Co., Ltd.

[Non-Manufacturing Subsidiaries]
Suzuki Transportation & Packing Co., Ltd.
Suzuki Business Co., Ltd.
Suzuki Engineering Co., Ltd.

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

[AMERICA]
USA
USA
CanadaMexicoColombia

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

[ASIA]India
India
PakistanIndonesia
ThailandThailand
Malaysia
Philippines
Cambodia
China
VietnamTaiwanMyanmar

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

[OCEANIA]
Australia
New Zealand

Suzuki Australia Pty. Ltd.
Suzuki New Zealand Ltd.

[AFRICA]South Africa

Suzuki Auto South Africa (Pty.) Ltd.

SUZUKI MOTOR CORPORATION 67

MEMO

68 SUZUKI MOTOR CORPORATION

434 (215 + 4 + 215) x 280 mm

2015

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

ANNUAL REPORT 2015
Printed in Japan