434 (215 + 4 + 215) x 280 mm

2014

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

ANNUAL REPORT 2014
Printed in Japan

Contents
Mission Statement___________________________________________________________ 1
A Message from the Management_____________________________________________ 2
Financial Highlights__________________________________________________________ 4
Year in Review_______________________________________________________________ 5
Automobiles_____________________________________________________________ 6
Motorcycles______________________________________________________________ 9
Marine Products_________________________________________________________ 12
Others__________________________________________________________________ 13
Topics_____________________________________________________________________ 14
Directors, Officers and Auditors______________________________________________ 17
Management Policy_________________________________________________________ 18
Risks in Operations_________________________________________________________ 24
The Status of the Corporate Group____________________________________________ 26
Financial Section___________________________________________________________ 28
Company Outline___________________________________________________________ 64

Mission Statement
1.Develop products of superior value by focusing on the customer
2.Establish a refreshing and innovative company through teamwork
3.Strive for individual excellence through continuous improvementSUZUKI MOTOR CORPORATION 1

A Message from the Management

A Message from the Management
Management results of this fiscal year
The management environment of the Group for FY2013 in overseas economy mainly in developed countries is showing positive
trend toward recovery, despite influence by tapering of monetaryeasing in the US, financial problem in Europe and unpredictableeconomic outlook for emerging countries such as India and Indonesia. Japanese economy also continues to be on recovery trend.
On the other hand, there is a concern about the impact of recoil
reduction of last-minute demand due to increase in consumption
tax rate.
Under these circumstances, the consolidated net sales of thisfiscal year (April 2013 to March 2014) increased by ¥360.0 billion(14.0%) to ¥2,938.3 billion compared to the previous fiscal year,
owing to increase in Japan, Asia, and Europe. The Japanese domestic net sales increased by ¥91.8 billion (8.8%) to ¥1,132.7 billion year-on-year, by covering the decrease in OEM sales with thesales of Suzuki brand vehicles. The overseas net sales increasedby ¥268.2 billion (17.4%) to ¥1,805.6 billion year-on-year.
In terms of the consolidated income, the operating income increased by ¥43.1 billion (29.9%) to ¥187.7 billion year-on-year,
and the net income increased by ¥27.1 billion (33.7%) to ¥107.5
billion year-on-year. The operating income increased mainly owing to improvement in export profit from Japan by the impact of
the exchange rate and increase in income in Asia.
The Company has decided to distribute year-end dividends
amounting to ¥14.00 per share for this fiscal year (¥10.00 per
share for the previous fiscal year). As a result, the annual dividends including interim dividends were ¥24.00 per share and upby ¥6.00 per share from the previous fiscal year.

Outstanding issues
The Group set a basic policy of “Think smarter, work harder andunite as a Suzuki group; overcome our challenges and navigate
our way to a brighter future” and will tackle following issues amid
challenging condition.
-Strengthening and expansion of sales network
To respond to intensifying competition at various regions andproducts, the Group will be expanding and strengthening its sales
network both in Japan and overseas, and execute marketing activities in a close contact with the market.

2 SUZUKI MOTOR CORPORATION-Product development and strengthening of research and development
The Group will make effort to strengthen its ability of researchand development such as environment technology, fuel efficienttechnology, weight reduction technology, safety technology, information and communications technology and product designingability. Also, the Group will make effort to manufacture cars withlower cost by improving efficiency of development by integrating
engine, powertrain and platform, and cost reduction.
-Strengthening of manufacturing capability
Based on the concept of “local production for local consumption,” the Group will continue to strengthen manufacturing outside Japan. Especially in Asia, which has a growing demand forautomobiles, the Group will strive to increase the ratio of inhouse manufacturing, expand global procurement and enhance
production capability at respective local markets. Moreover, alongwith the advancement of economic cooperation among different
regions through FTA and the trend of the foreign currency market,
the Group will also work to optimize the balance of manufacturing
activities in and outside Japan.
-Reconstruction of motorcycle business
As for the Motorcycle business, although business as a wholeslightly turned into the black mainly owing to improvement inincome of large-displacement motorcycles, compact motorcycle
business mainly in Asia is still in the middle of reform. The Groupwill continuously be aiming at recovering its presence in the
motorcycle market by uniting the planning, technology and sales
functions and by developing new products that suit the market
needs further. The Group will particularly be focusing on compact
motorcycle business in Asia where growth potential is high, and at
the same time, the Group will also be strengthening its lineup of
middle and large-sized motorcycles-Commitment to global environmental problem
Concerning the environmental issues, the Group has been offering minivehicles in Japan and many types of compact vehicles
that are highly fuel-efficient in places like India and other Asian
countries. The Group believes that a spread of such compact vehicles would be one of the best ways to contribute to solving theenvironmental issues. In addition to enhancement of next generation environmental technology in “SUZUKI GREEN Technology”, theGroup will continue to tackle global environmental problem basedon “Suzuki Environmental Plan 2015” and “Suzuki Biodiversity
Protection Guideline”.

A Message from the Management-Disaster prevention
While the Group has been taking various measures to prevent anticipated damage caused by Tokai and Tonankai Earthquake, after
experiencing the Great East Japan Earthquake, it has diversified
production and research sites including overseas. Firstly, it is relocating plants and facilities in Ryuyo region in Iwata City, Shizuoka
Prefecture since massive tsunami damages are anticipated in theregion, to Miyakoda district in northern part of Hamamatsu City.
Also, the Group has diversified its production of engine for minivehicle,
which was concentrated to Sagara plant, to Kosai plant to mitigate
risk. Further, the Group is expanding its research facilities in India
partly in order to mitigate risk concerning product development
facility for automobile in Sagara test course. The Group will continue to enhance its preparedness against natural disasters.
The Group has carried out its operations on the basis of manufacturing of "value-packed products" to satisfy customers since its

establishment with the motto "Develop products of superior value
by focusing on the customer" in the first paragraph of its mission
statement. The Group will strive for manufacturing of really valuable products appreciated by customers, constantly paying attention to the movement of times.
The Group commits itself to make efforts to promote the “production of small and subcompact vehicles” and the “development ofenvironmentally benign products” needed by customers, and “tobe small, less, light, short and beautiful” on every side of organization, facilities, parts, environment and so on as well as production,with the slogan, "Small Cars for a Big Future", and has been working for the efficient, well-knit and healthy management.
Our executive officers and employees will strictly adhere to all
statutes, social norms, and in-house rules, etc., act fairly and withsincerity.
We look forward to the continued support and encouragement of
our stockholders.

Osamu Suzuki, Chairman & CEO
Representative Director andExecutive Vice President

Yasuhito Harayama

Representative Director andExecutive Vice President

Osamu Honda

Representative Director andExecutive Vice President

Minoru Tamura

Representative Director andExecutive Vice President

Toshihiro Suzuki

SUZUKI MOTOR CORPORATION 3

Financial Highlights

Financial Highlights
Thousands of US
dollars (except per
share amounts)

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES
Years ended March 31, 2014 and 2013

Millions of yen(except per share amounts)

2014

2013

2014

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

¥2,938,314¥2,578,317$28,549,496

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

107,484

80,3891,044,346

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

191.60143.31

1.86

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

191.57131.67

1.86

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

24.00

18.00

0.23

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

1,494,357

1,298,553$14,519,602

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

1,790,832

1,560,218$17,400,238

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

2,874,074

2,487,635$27,925,327

Depreciation and amortization...............................................

117,188

93,680$1,138,639

Note:

Yen amounts are translated into US dollars, for convenience only, at ¥102.92=US$1, the prevailing exchange rate on
March 31, 2014.

Net Sales

Net Income

Years ended March 31(Millions of yen)

Years ended March 31(Millions of yen)

Net Income Per ShareYears ended March 31(yen)

191.60107,484

2,938,314
143.3180,3892,608,217
2,512,186

2,469,063

2,578,317

96.06

53,88780.65

45,17462.76
28,9132010

2011

4 SUZUKI MOTOR CORPORATION

2012

2013

2014

2010

2011

2012

2013

2014

2010

2011

2012

2013

2014

Year in Review

Year in Review
n Production
Automobile Production(Thousand units)

1,586

2010

Japan

Overseas

Years ended March 31

Total

959

2,545

1,884

2011

994

2,878

2012

1,782

1,020

2013

1,834

1,044

2,878

2014

1,859

998

2,857

Motorcycle Production

2,802

Years ended March 31(Thousand units)(ATV included)

2010

Total

2,743

2011

162 2,904

2,550

2012

185 2,735

2,400

2013

174

2,100

2014

Japan

Overseas

1,882

169
180

2,574

2,269

2,063

n 2014 Net Sales
2014 Net Sales By Products(Year ended March 31, 2014 Millions of yen)2014 Net Sales By Market(Year ended March 31, 2014 Millions of yen)

Other

Marine & Power
Products, etc.
56,0461.9%

Motorcycle
266,602
9.1%

Automobile
2,615,664
89.0%

193,941
6.6%

Europe North
America
394,71413.4%

64,8902.2%

Japan
1,132,732
38.6%

Asia
1,152,034
39.2%

SUZUKI MOTOR CORPORATION 5

Year in Review

Automobiles
Suzuki’s Worldwide Manufacturing and Sales
Total overseas automobile production for fiscal 2013 increased to 1,859,000 units, 101.3% compared to the previous fiscal year. Worldwide
production, including Japan, decreased to 2,857,000 units, 99.3% compared to the previous fiscal year.
Sales of automobiles in overseas market decreased to 1,983,000 units, 99.7% compared to the previous fiscal year, while total global sales,
including Japan, increased to 2,711,000 units, 101.9% compared to the previous fiscal year.

Operating Results by Segment
In the automobile business, the operating income marked the highest ever, which increased by ¥28.7 billion to ¥179.3 billion year-on-year,
mainly owing to improvement in export profit from Japan by the impact of the exchange rate and increase in income in Asia.

The Japanese Market
1. Overview of the Japanese Automobile Market
Total domestic automobile sales volume in fiscal 2013 rose by 9% year-on-year to 5,692,000 units (an increase of 482,000 units). Sales declined in
the first half but were boosted greatly in the second half by an economic recovery and by a rush to buy vehicles ahead of a hike in the rate of consumption tax. Sales exceeded five million units for the second fiscal year in a row. Sales of minivehicles showed a marked increase of 15% yearon-year to a record-high 2,262,000 units. Overall sales of registered vehicles rose by 6% year-on-year to 3,430,000 units. They were up on the year
for the third fiscal year in a row.

2. Suzuki Sales
Suzuki’s domestic automobile sales volume in fiscal 2013 surged by 8% year-on-year
to a record-high 728,000 units. One key factor supporting the sales growth wasa series of launches of new models throughout the fiscal year. Another was
the rush to buy vehicles ahead of the hike in the rate of consumption tax.
Suzuki’s sales of minivehicles grew by 10% year-on-year to 647,000 units.
The Spacia, Carry, Hustler and other new minivehicle models that each
represent a clear response to market needs contributed to the growth.
Suzuki’s sales of registered vehicles declined by 5% year-on-year to 81,000
units. They were down on the year for the first time in four years.

3. Suzuki Topics in Fiscal 2013

Tall miniwagon Spacia Custom• In June 2013, Suzuki launched the Spacia Custom (a variant of the Spacia). In November 2013, the Spacia won the Car of the Year Japan
Small Mobility Award.
• In July 2013, Suzuki made enhancements to the WagonR. The improved model has the best fuel economy (30km/L)* of any miniwagon (a minicar with an overall height of at least 1,550mm) and incorporates advanced safety technologies such as collision-mitigation braking system.
• Also in July 2013, Suzuki enhanced the Swift compact car by adding a grade that includes the newly developed Dualjet engine (a unit that combines
great fuel economy with powerful performance) and the Ene-Charge energy regenerative system.
• In September 2013, Suzuki launched the first comprehensively enhanced version of theCarry minitruck in 14 years. The newly improved Carry has a roomier, more comfortablecabin together with the class-leading** load-bed length of its predecessor.
• In January 2014, Suzuki launched the Hustler—a new-genre minivehicle
that represents a fusion of a miniwagon and a sport utility vehicle. The
Hustler has been a hit with customers across a wide range of ages. Orders are accordingly strong.
* Measured in the JC08 test cycle with a vehicle equipped with two-wheel drive and acontinuously variable transmission. Verified by Japan’s Ministry of Land, Infrastructure,
Transport and Tourism. Measurements made by Suzuki in July 2013 show that somegrades of the MR Wagon offer the same level of fuel efficiency.
** Based on Suzuki’s research into the minitruck class in August 2013.
Minicar crossover Hustler

6 SUZUKI MOTOR CORPORATION

Year in Review

Overseas Markets
1. Overview of Suzuki’s Main Overseas Automobile Markets
Sales of automobiles (passenger cars and multi-utility vehicles) in India fell by 6% year-on-year to 2,504,000 units. One reason for the decrease was higher fuel prices brought about by a weaker rupee. Another was higher interest rates. Sales in the five key ASEAN countries(Indonesia, Thailand, Vietnam, the Philippines, and Malaysia) fell by 8% year-on-year to 3,364,000 units. A key reason for the decrease wasthat consumers in Thailand were reluctant to buy vehicles before the government launched a tax incentive scheme. Sales in Europe (theEuropean Union and the European Free Trade Association) rose by 3% year-on-year to 12,593,000 units owing to signs of economic recovery. Sales in China rose by 16% year-on-year to 22,491,000 units.

2. Suzuki Sales
Suzuki’s overseas automobile sales volume in fiscal 2013 was roughly flat on the year; it slipped by 0.3% to 1,983,000 units in the midst of
uncertain market conditions. Suzuki’s sales in India rose by 0.3% year-on-year to 1,054,000 units. Despite a slowdown in the Indian economy, the Company enjoyed firm demand for compact cars including the new Celerio and the Swift. Suzuki’s sales in China declined by 8%
year-on-year to 233,000 units. The Company launched the SX4 S-CROSS in China at the end of the fiscal year, but overall demand for compact cars was down. Suzuki’s sales in the five key ASEAN countries (Indonesia, Thailand, Vietnam, the Philippines, and Malaysia) surged by
19% year-on-year to 225,000 units owing partly to strong sales of the Ertiga and partly to the launch in Indonesia of a model that meets thegovernment’s requirements for LCGC (Low-Cost Green Car) scheme. Suzuki’s sales in Europe (the European Union and the European Free
Trade Association) rose by 7% year-on-year to 160,000 units owing largely to the launch of the SX4 S-CROSS.

3. Suzuki Topics in Fiscal 2013
• In September 2013, Suzuki conducted the Indonesian launch of the WagonR, which meets the government’s requirements for LCGC (LowCost Green Car) scheme.
• Also in September 2013, Suzuki launched the SX4 S-CROSS. The
first market to receive this model was Europe.
• Suzuki announced the establishment in India of the completely
Suzuki-owned automobile production subsidiary Suzuki Motor
Gujarat. The new subsidiary will enable Suzuki to accommodate
growth in the Indian automobile market and increase exports
from the country. Production is scheduled to start in 2017.
• In February 2014, Suzuki unveiled a global model called the
Celerio. The Celerio for Thailand meets the government’s requirements for its eco-car project.
• Maruti Suzuki’s sales volume in India exceeded one million units
for the fourth fiscal year in a row.

Kosai Plant(Passenger car and automobile engines assembling)

Iwata Plant(Multi-purpose vehicle and commercial vehicle assembling)

Sagara Plant(Passenger car and automobile engines assembling,foundry of engine components, machining)

SUZUKI MOTOR CORPORATION 7

Year in Review

Three-row compact car Ertiga

C-segment crossover SX4 S-CROSS

Global compact car Celerio

8 SUZUKI MOTOR CORPORATION

Year in Review

Motorcycles
Suzuki’s Worldwide Manufacturing and Sales
Total overseas motorcycle production (including ATVs) in fiscal 2013 decreased to 1,882,000
units, 89.6% compared to the previous fiscal year. Worldwide production, including production in
Japan, also decreased to 2,063,000 units, 90.9% compared to the previous fiscal year.
Sales of motorcycles (including ATVs) in overseas market decreased to 1,953,000 units, 87.4%
compared to the previous fiscal year, while total global sales, including Japan, also decreased to
2,027,000 units, 87.7% compared to the previous fiscal year.

Operating Results by Segment
In the motorcycle business, the operating loss of ¥11.9 billion in the previous fiscal year became an operating income of ¥100 million, slightly turning into the black
for the first time in six fiscal years, mainly owing to improvement in income of largedisplacement motorcycles.

Half-faired GSR250S

The Japanese Market
1. Overview of Japanese Motorcycle Market
The total domestic motorcycle sales (factory shipments) of the four Japanese manufacturers in fiscal 2013 rose by 9% year-on-year to 438,000 units owing partly to a rush to
buy motorcycles ahead of a hike in the rate of consumption tax. Sales of models withengine displacements of 126cm3 and higher were up 33% year-on-year at 90,000 units.
Sales of models with engine displacements up to 125cm3 were up 4% year-on-year at
348,000 units. The domestic motorcycle market began shrinking after the financial crisisof 2008, but sales of models with engine displacements of 126cm3 and higher are now
trending upward; they have grown for three years in a row.

2. Suzuki Sales
Suzuki’s domestic sales (factory shipments) of models with engine displacements of
126cm3 and higher surged by 35% year-on-year to 13,000 units owing partly to new
products including the GSR250S, the Burgman 200, and the Japan-specification Hayabusa. Sales of models with engine displacements up to 125cm3 declined by 6% year-onyear to 59,000 units owing partly to inventory adjustments that involved a reduction in
shipments. Total sales were roughly flat on the year; they were down 1% at 72,000 units.
Suzuki’s sales of models with engine displacements of 126cm3 and higher have reflected
the market trend by growing for three years in a row. The Company plans to treat thesehighly profitable models as the focus of its sales-promotion efforts.

Light, compact scooter BURGMAN 200

3. Suzuki Topics in Fiscal 2013
• In January 2014, Suzuki launched the half-faired GSR250S to complement the
GSR250, an on-road sportbike that has been popular since its launch in July 2012
owing to its bold styling and rider-friendly engine.

Japan-specification Hayabusa• Suzuki launched the Burgman 200, a light, compact scooter with superior acceleration, in February 2014. The Company had already launched this model overseas.
• Suzuki launched the Japan-specification Hayabusa in February 2014. This motorcycle
satisfies Japanese regulations while delivering the same maximum output and torqueas the European version. It is the first motorcycle in Japan to have a transponder forelectronic toll collection as standard equipment*.
* Based on Suzuki research in January 2014.

SUZUKI MOTOR CORPORATION 9

Year in Review

Overseas Markets
1. Overview of Suzuki’s Main Overseas Motorcycle Markets
Sales of motorcycles in Europe in fiscal 2013 were flat on the year at
821,000 units. Sales of motorcycles (including ATVs) in North Americarose by 5% year-on-year to 801,000 units. Sales in the six key ASEAN
countries (Indonesia, Thailand, Vietnam, the Philippines, Malaysia, andCambodia) were flat on the year at 13,863,000 units. Sales in China fell by
9% year-on-year to 11,313,000 units. Sales in India grew by 7% year-onyear to 14,805,000 units.

2. Suzuki Sales

Toyokawa Plant(Motorcycles and outboard motors assembling)

Suzuki’s overseas motorcycle sales fell by 12% year-on-year to 1,953,000 units. Suzuki’s sales in Europe rose for the first time in six fiscal years; they were up 1% at 48,000 units. Suzuki’s sales in North America fell by 7% year-on-year to 41,000 units. Suzuki’s sales in the six
key ASEAN countries (Indonesia, Thailand, Vietnam, the Philippines, Malaysia, and Cambodia) fell by 6% year-on-year to 611,000 units owing
partly to prolonged political turmoil in Thailand. Suzuki’s sales fell by 23% year-on-year to 620,000 units in China and by 14% year-on-year to356,000 units in India.

Sportbike GIXXER (India)

Sport Adventure Tourer V-Strom 1000 ABS

Compact scooter Let’s (India)

Light, compact scooter BURGMAN 200

10 SUZUKI MOTOR CORPORATION

Year in Review

3. Suzuki Topics in Fiscal 2013
• Suzuki announced in Spain in June 2013 that it would be returning to MotoGP in 2015. The Company unveiled the race machine
it was developing.
• In September 2013, the Suzuki Endurance Racing Team won the
FIM Endurance World Championship for the fourth time in a row
and the 13th time in total.
• Also in September 2013, Suzuki unveiled new models in Europe:
the V-Strom 1000 ABS and the Burgman 125/200.
• Also in September 2013, Suzuki announced in Bangkok that itplanned to launch a number of large-displacement models in
the ASEAN market.

Endurance World Championship

MotoGP Prototype

Introduction of large-displacement models in Bangkok

SUZUKI MOTOR CORPORATION 11

Year in Review

Marine Products
Operating Results by Segment
In the marine and power products, etc. business, the net sales andthe operating income increased year-on-year owing to increase insales of outboard motors in Europe.

Overview of Marine Products
Suzuki’s domestic outboard motor sales volume in fiscal 2013 wasslightly down by 1% year-on-year. The net sales decreased by 5%
year-on-year due to a shift in demand toward smaller models. The
export sales volume also declined by 2% year-on-year. On the contrary, the net sales increased by 6% year-on-year due to a shift indemand toward larger models.
Suzuki’s four-stroke outboard motors range from the DF2 (thelowest-power model, which delivers 1.49kW/2PS) to the DF300 (thehighest-power model, which delivers 220.7kW/300PS). The Company produces small models in Thailand and larger models at the
Toyokawa Plant in Japan.

DF60AV

Suzuki Topic in Fiscal 2013
• In September 2013, Suzuki agreed with the French boat builder
Bénéteau for an exclusive supply of Suzuki outboard motors totheir outboard powered boats sold in four countries in Europe.

DF150TG

DF175TG

12 SUZUKI MOTOR CORPORATIONDF50AV

DF30A

Year in Review

OthersEnvironmental Initiatives
As a manufacturer of automobiles, motorcycles, outboard motors, and otheritems, Suzuki acts in consideration of the environment at all product stages
from development to disposal.
In product development, our environmental initiatives include improving fueleconomy, reducing exhaust emissions, developing clean-energy vehicles, andreducing noise. In manufacturing, our efforts include reducing environmental
risk, reducing energy requirements, and promoting the use of alternative energy
sources. In distribution, we focus on improving the operational efficiency andenergy efficiency of transportation and on promoting the three Rs (reducing,reusing, and recycling). In marketing, we promote environmental management
among our dealers and strive to ensure proper disposal of end-of-life products.
We also pursue environmental initiatives that are not directly related to our
products. For instance, we promote energy savings and green purchasing in our
offices, give our workers environmental education, and support social action
programmes in local communities.

SUZUKI ENVIRONMENTAL & SOCIAL REPORT 2013

Swift XS-DJE

Swift RS

Suzuki Topics in Fiscal 2013
• Suzuki published “Suzuki Environmental and Social Report 2013”. The Company has published a report about its environmental initiatives every year
since fiscal 1999.
Alto Eco• In July 2013, Suzuki launched the Swift in a more eco-friendly form that incorporates fuel-saving technologies including the newly developed Dualjetengine and the Ene-Charge energy regenerative system. This vehicle has
plenty of power for dynamic performance and offers the best fuel economy
of any petrol-engine car with an engine displacement of at least 1.2L*.
• In December 2013, Suzuki launched a more fuel-efficient form of the Alto Eco
minicar. The enhanced Alto Eco became the most fuel-efficient petrol-engine
Auto Gear Shiftcar in Japan**; it delivers fuel economy of 35km/L*** (an improvement of
2km/L) together with nimble performance. Suzuki increased fuel efficiency by complementing the Alto Eco’s existing fuel-saving technologies (for instance, the Ene-Charge energy regenerative system and an Engine Auto Stop Start System) with a higher compression ratio,
better fuel combustion, lower frictional resistance, and optimized powertrain control.
• In January 2014, Suzuki announced that it had developed the Auto Gear Shift system, which combines the merits of manual and automatictransmissions. The Auto Gear Shift system is based on a manual transmission, so it offers manual-transmission fuel economy. Optimal
computer-controlled gearshifts also contribute to fuel savings.
*Measured in the JC08 test cycle using the XG-DJE, XL-DJE, and XS-DJE variants (each equipped with two-wheel drive and a continuously variable transmission). Verified by
Japan’s Ministry of Land, Infrastructure and Transport. Comparison is based on Suzuki research in July 2013 and excludes hybrids.
**Measured in the JC08 test cycle and verified by Japan’s Ministry of Land, Infrastructure and Transport. Comparison is based on Suzuki research in November 2013 and excludes hybrids.
***Measured with a two-wheel-drive vehicle in the JC08 test cycle and verified by Japan’s Ministry of Land, Infrastructure and Transport.

Suzuki’s cooperation with other automobile manufacturers (as of July 2014)
Suzuki has been cooperating with other automobile manufacturers both in and outside Japan.
Suzuki and Nissan have been supplying each other with vehicles in Japan on an original-equipment-manufacturer (OEM) basis since 2002.
To Mazda, Suzuki has been supplying vehicles in Japan since 1989 and began supplying vehicles in Indonesia as well in 2013. Suzuki has
been also making vehicles’ OEM supply to Mitsubishi in Japan since 2011.
From Fiat, Suzuki has been sourcing its diesel engines for vehicles sold mainly in Europe since 2005. In India, Suzuki has been producing
diesel engines at its own factories since 2006 using technologies acquired from Fiat.
In 2013, Suzuki started supplying British manufacturer, Caterham with 660cm3 engines and some drive-train components designed for minivehicles
for the installation on its sport cars. The car is sold also in Japan as a British-made minivehicle.
Suzuki continues pursuing opportunities and areas of cooperation with other manufacturers where effective use of companies’ business resources and mutual benefit can be expected.
Alliance with Volkswagen formed in December 2009 by entering into a framework agreement accompanied with a capital relationship did
not realize any projects. Suzuki terminated the said agreement for breach of contract by Volkswagen. Currently, Suzuki is engaged in proceedings at the International Court of Arbitration with a view to securing the return of its shares.
SUZUKI MOTOR CORPORATION 13

Topics

TopicsApril 2013
Donation for Construction of Sea Wall in Hamamatsu City
Suzuki announced plans to help Hamamatsu City fund the constructionof an anti-tsunami sea wall. The Hamamatsu Chamber of Commerce andIndustry made an appeal for five billion yen. Suzuki is contributing 500 million yen over five years.

June 2013
Launch of the Feminine Alto Lapin Chocolat
Suzuki launched the Alto Lapin Chocolat—a minicar designed specially foryoung women. The Alto Lapin Chocolat has cute styling, jewellery-inspired
design details, and candy colouring. Plus, it
has ultraviolet- and infrared-cutting glass
whose functional benefits reflect consideration of female users. In December 2013,
the car won the interior and design awards
at the Japan Fashion Color Association’s
2014 Auto Color Awards.

July 2013
Launch of WagonR in More Fuel-Efficient and20th-Anniversary Forms
Suzuki enhanced the WagonR and WagonR Stingray to achieve fuel economy
of 30km/L* (the best of any miniwagon in Japan**) and incorporated advanced
safety technologies that make these models even more appealing. Suzuki also
launched a special model to celebrate the WagonR’s 20th anniversary.
*Measured in the JC08 test cycle using
a vehicle with two-wheel drive and acontinuously variable transmission.
Verified by Japan’s Ministry of Land, Infrastructure, Transport and Tourism.
**A miniwagon is a minicar with an overall
height of at least 1,550mm. Suzuki madecomparisons in July 2013 using measurements taken in the JC08 test cycle
and verified by Japan’s Ministry of Land,
Infrastructure, Transport and Tourism.

Launch of Swift with Dualjet Engine and Ene-Charge System
Suzuki offered SUZUKI GREEN Technology environmental innovations in a compact
car for the first time with the launch of the Swift in a form that incorporates the
newly developed Dualjet engine and the Ene-Charge energy regenerative system.
The Dualjet engine combines high fuel economy with powerful performance bymeans of measures that include two fuel-injection systems for each cylinder,cooled exhaust-gas recirculation, and a heightened compression ratio. The SUZUKI
GREEN Technology-equipped Swift offers fuel economy of 26.4km/L* (the best of
any petrol-engine car with an engine displacement of at least 1.2L)** together
with an even higher level of the driving enjoyment for which the Swift is known.
*Measured in the JC08 test cycle using the
XG-DJE, XL-DJE, and XS-DJE variants (eachequipped with two-wheel drive and a continuously variable transmission). Verified
by Japan’s Ministry of Land, Infrastructure,
Transport and Tourism.
**Suzuki made comparisons in July 2013 using
measurements (excluding those for hybrids)
taken in the JC08 test cycle and verified
by Japan’s Ministry of Land, Infrastructure,
Transport and Tourism.

14 SUZUKI MOTOR CORPORATION

Selection of Recipients for Suzuki Education and Culture
Foundation Scholarships
Suzuki founded the Suzuki Education and Culture Foundation (a juridical
foundation) in 2000 to mark its 80th anniversary. The foundation is fundedby donations from its chairman, Osamu Suzuki, and the Suzuki group. It
gives scholarships to students who would otherwise not be able to focus
on their studies for financial reasons. Eligible students include those who
attend high schools in Shizuoka Prefecture and those who graduated from highschools in Shizuoka Prefecture and are
now at university. In fiscal 2013, the foundation decided to give 20,000 yen a montheach to 55 high-school students and
50,000 yen a month each to 13 university
students. The foundation held a certification ceremony for the recipients.

August 2013
Announcement of Plans to Build Hamamatsu Plant
Suzuki announced plans to build a production, research, development, andtesting complex called the Hamamatsu Plant at the Hamamatsu City Miyakoda Industrial Site. The Hamamatsu Plant will have a northern block and asouthern block. The northern block will consist of a factory producing powertrain parts for motorcycles, automobiles, and next-generation eco-cars.
The southern block will consist of (a) a factory
producing engines for motorcycles and (b) an
engineering centre handling research, development, and testing for motorcycles and nextgeneration eco-cars. Suzuki plans to complete
the parts plant at the end of 2016 and the
motorcycle engine factory in 2017. In January
2014 the Company held a ceremony for praying
safety of Hamamatsu Plant construction.

Unveiling of Comprehensively Enhanced Carry Minitruck
Suzuki unveiled the first comprehensively enhanced version of the Carry
minitruck in 14 years. The newly improved Carry has proven popular withcustomers owing to a roomy, comfortable cabin, a capacious load bed,
powerful performance, superior manoeuvrability and fuel economy, andcomprehensive anti-rust measures. Plus, it meets a wider range of needs
owing to the availability of discharge headlamps,
which brightly illuminate the road far ahead. In
October 2013, the Carry won a place in the Good
Design Best 100 at the 2013 Japan Good DesignAwards. The judges recognized it as representing
excellence in manufacturing in a mature field.

September 2013
Suzuki Wins 2013 Endurance World Championship Title
Suzuki Endurance Racing Team (SERT), a racing team supported by Suzuki’s French
subsidiary, Suzuki France S.A.S., won the World Endurance Championship title forthe fourth consecutive year, its 13th
all-time title. Suzuki proved the highperformance of the GSX-R1000 at the
production-based motorcycle endurance race championship. Suzuki isalso developing MotoGP machine
toward its participation in 2015.
Suzuki Endurance Racing Team (SERT)Topics

Domestic Sales of WagonR Reach Four Million Units
Sales of the WagonR miniwagon in Japan reached four million units* in themonth that marked the 20th anniversary of the launch of the WagonR series. Ever since its market debut in first-generation form on September 3,
1993, the WagonR has won fans among customers of both sexes across awide age range owing to its striking, distinctive styling, the ease with whichpeople can get in and out of its cabin, the ease with which people can drive
it, and its roominess. The WagonR created the miniwagon market. Suzuki
plans to continue satisfying customers’ desires and enhancing the productin terms of safety, eco-friendliness, and other aspects of functionality andperformance in order to keep it relevant and popular over the long term.
Accumulated Domestic Sales Units of the WagonR(Units)4 million

3 million

2 million

1 million

1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013
(Fiscal Year)*Confirmed by Suzuki in September 2013 using data from the Japan Light Motor Vehicle and Motorcycle Association.

Suzuki SX4 S-CROSS Rolls Off the Line in Hungary
Suzuki held a ceremony for its first C-segment crossover SX4 S-CROSS as it
rolled off the production line of Suzuki’s Hungarian subsidiary, Magyar Suzuki
Corporation Ltd. by welcoming Dr. Viktor Orbán, Prime Minister of Hungary.
With the initial production and sales volume planned to be 100,000 units
for the first year, the SX4 S-CROSS
will not only be supplied throughout
Europe including Hungary, but will also
be exported to markets including Oceania, Asia, the Middle East and Latin
America as a world strategic model.
The SX4 S-CROSS also received maximum 5-star Euro NCAP overall safety
rating, and proved its high safety perPrime Minister Viktor Orbán and Suzuki
formance.
Chairman and CEO Osamu Suzuki

Exclusive Supply of Outboard Motors to the French Boat
Builder Bénéteau
Suzuki agreed with the French boat builder Bénéteau for an exclusive supply of Suzuki outboard motors to their outboard powered boats sold infour countries in Europe.
Suzuki and Bénéteau plan to mutually support each other in marketing andproduct development. Suzuki willseek to strengthen its outboards
brand and increase the technology and product strength ofoutboards while increasing thesales of large outboard motors.

Strengthening Production Structure in Indonesia.
Introduction of the Eco-Car WagonR
Suzuki’s Indonesian subsidiary PT. Suzuki Indomobil Motor (SIM) revealed a 1.0L
fuel-efficient five-seater passenger car Karimun WagonR, a model that meetsthe government’s requirements for LCGC (Low-Cost Green Car) scheme.
Its production started in September at SIM’s Tambun Plant, and sales
started in November. In order to meet the growing automobile market inIndonesia, Suzuki is constructing newengine and transmission plant and new
automobile assembly plant within theGreenland International Industrial Center.
Production ability in Indonesia is planned
to reach 250,000 units in FY2015.

November 2013
Resolution to Install Mega-Solar Power Facility at the
Nakazato Industrial Park Located in Makinohara
Suzuki resolved to install mega-solar power facility at 42 hectares of landin the Nakazato Industrial Park located in Makinohara, Shizuoka Prefecture.
The generation capacity of the facility is 18 megawatt, which is scheduled
to start its generation in the autumn of 2015.
Suzuki will contribute to the local community through its power generation business, and strengthen its efforts on environmental problems bypromoting local production of the energy for local consumption.

Unveiling of an Enhanced Alto Eco:the Most Fuel-Efficient Petrol Car in Japan
Suzuki unveiled a more fuel-efficient form of the Alto Eco minicar. The
enhanced Alto Eco became the most fuel-efficient petrol-engine car inJapan*; it delivers fuel economy of 35km/L** (an improvement of 2km/L) together with nimble performance. Suzuki increased fuel efficiency bycomplementing the Alto Eco’s existing fuel-saving technologies with ahigher compression ratio, better fuel combustion, lower frictional resistance, and optimized powertrain control. Also, Suzuki began offering theAlto Eco at a more affordable price.
*Suzuki made comparisons in November 2013 using
measurements (excluding those for hybrids) takenin the JC08 test cycle and verified by Japan’s Ministry of Land, Infrastructure, Transport and Tourism.
**Measured with a two-wheel-drive vehicle in the
JC08 test cycle and verified by Japan’s Ministry ofLand, Infrastructure and Transport.

Spacia and Spacia Custom Win Car of the Year Japan
Small Mobility Award
The Spacia and Spacia Custom won the 2013–2014 Car of the Year Japan
Small Mobility Award. The award was established in 2013 to honour theyear’s best minivehicle. The
judges praised the first recipients, the Spacia and Spacia
Custom, for exemplifying a newform of small mobility.

SUZUKI MOTOR CORPORATION 15

Topics

December 2013

February 2014

Unveiling of the New-Genre Hustler Minicar Crossover

Launch of More Confidence-Inspiring Mobility Scooters:
the Seniorcar ET4D and ET4E

Suzuki created a lifestyle-focused new genre—the minicar crossover—byunveiling the Hustler, which represents a fusion of passenger miniwagon
and sport utility vehicle (SUV). The Hustler is packaged for spaciousness
and superior rough-terrain performance, has distinctive SUV-inspired looks,
and offers outstandingly user-friendly equipment and functionality. SUZUKI
GREEN Technology gives it nimble, powerful performance and superior fueleconomy. The Hustler with four-wheel drive has functionality that is new
to minivehicles*. Plus, the Hustler incorporates advanced safety technologies such as the Radar Brake Support
collision-mitigation braking system**.
*The Hustler (except the A grade) with fourwheel drive and a continuously variable transmission has Hill Descent Control and Grip Control functions. Suzuki made comparisons withother vehicles in December 2013.
**The Hustler (except the A grade) with a continuously variable transmission has the advanced
safety technologies.

January 2014
Unveiling of Japan-Specification Hayabusa Sportbike
Suzuki unveiled the Japanese version of its flagship sportbike, the Hayabusa.
The company launched the Hayabusa in 1999 and has since sold it mainlyin Europe and North America. In the past few years, Suzuki has expanded
the Hayabusa’s availability to other areas including emerging nations such
as India; the bike has become popular worldwide. The Japan-specification
Hayabusa satisfies Japanese regulations
while delivering the same power as theEuropean version. It is the first motorcycle in Japan to have a transponder forelectronic toll collection (convenient for
touring) as standard equipment*.
*Based on Suzuki research in January 2014.

Development of New Transmission Auto Gear Shift
Auto Gear Shift is an automated manual transmission
which makes operations of clutch pedal and gearshift
unnecessary. It features smooth shifting of gears and thesame creep function as in conventional automatic transmission and continuously variable transmission, while
realizing low fuel consumption with its high transmission
efficiency. It is equipped on the new compact car Celerio
which was launched in February in India.

Resolution to establish automobile manufacturing subsidiary,
Suzuki Motor Gujarat in India
Suzuki resolved to establish an automobile manufacturing subsidiary,
Suzuki Motor Gujarat Private Limited (SMG) in India. SMG has the purpose
to expand production capacity in India for future development of Indian
automobile market and to expand exports from India.
SMG will build automobile manufacturing plant in Gujarat, located in western India. Start of production is set to be within 2017. In the initial stage,
annual production capacity is scheduled to be 100,000 units, and thecapacity will be increased gradually depending on market trend. Contract
manufacturing agreement between SMG and Maruti Suzuki India Limited(MSIL) is planned, in which MSIL will become the distributor of vehicles
including exports.

16 SUZUKI MOTOR CORPORATION

Suzuki enhanced the Seniorcar ET4D and Seniorcar ET4E by incorporating functions that give the user greater peace of mind by making driving
easier. New features include indicators and voice warnings that encourage caution when the vehicle encounters asteep slope, when the vehicle is turning orreversing, and when the battery runs low. The
Seniorcar ET4D offers even greater comfort andconvenience by means of a big basket that isincorporated into a front design that conveys asense of freshness and stability.
Seniorcar ET4D

Suzuki Foundation announces funding of 27 scientificresearches for fiscal 2013
Suzuki Foundation, which was established in March 1980 to mark the 60th
anniversary of Suzuki, selected 25 scientific research projects and two
proposed scientific research projects for fiscal 2013, and held a presentation ceremony. Thus far, the Foundation has made 1,316 supports including research projects by universities and research institutes in Japan andsubsidizing programs in Japan for researchers
from overseas. The Foundation does not limit
the usage of the funding to researches, but for
any other purposes as well including transportation fees. For this reason, the Foundation is valued by many universities and research institutes
that the Foundation supported.

Launch of fuel-efficient new compact car Celerio in India.
Introduction to Thailand and Europe also announced.
Suzuki unveiled a new compact car Celerio at the India Auto Expo, which
was held in India in February. The Celerio adopts a design that surpasses
that of conventional A-segment cars, as well as roomy and elegant package. It is a global compact model which realizes low fuel consumption by
the combination of new transmission Auto Gear Shift (AGS) to a 1.0L engine, in additon to its lightweight body. Approximately half of the bookingsfor the first two months are equipped with AGS, which is drawing attention
for its advantage in price and fuel-efficiency in India, where manual transmission is the mainstream.
Subsequently in March, the Celerio was exhibited at the Geneva Motor
Show (Switzerland) and at the Bangkok International Motor Show (Thailand).
Production of the Celerio started in May at Suzuki’s Thai subsidiary, Suzuki
Motor (Thailand) Co., Ltd. as its second car that meets the eco-car project
promoted by the government. It is planned to be distributed in Thailand
and its neighboring countries as well as in Europe.

India Auto Expo

Geneva Motor Show

Directors, Officers and Auditors

Directors, Officers and Auditors(as of June 27, 2014)[Representative Directors]
Representative
Director andChairman & CEO
Representative
Director andExecutive
Vice President

Osamu Suzuki
Minoru Tamura

Supporting CEO / Domestic Marketing / Executive General Manager, Domestic Marketing

Osamu Honda

Supporting CEO / Automobile Engineering, R&D, and Quality / Executive General Manager, Automobile Engineering

Toshihiro Suzuki

Supporting CEO / Global Marketing

Yasuhito Harayama

Supporting CEO / Business Development / Executive General Manager, Business Development

Naoki Aizawa

Manufacturing / Chief Officer, Gujarat Project

Eiji Mochizuki

Executive General Manager, Motorcycle Operations[Directors]
Director andSenior Managing
Officer
Director

Masakazu Iguchi
Sakutaro Tanino*Mr. Masakazu Iguchi and Mr. Sakutaro Tanino are the outside directors as stipulated in Article 2, Item 15 of Companies Act of Japan.

[Auditors]
Company Auditor

Kunio Nakamura
Shunji Matsumoto
Shin Ishizuka

Company Auditor(non full-time)

Masataka Osuka
Norio Tanaka*Mr. Shin Ishizuka, Mr. Masataka Osuka and Mr. Norio Tanaka are the outside company auditors as stipulated in Article 2, Item 16 of Companies Act of Japan.

[Senior Managing Officers]
Senior Managing
Officer

Kenichi Ayukawa

Executive General Manager, India/Africa Automobile Marketing / Managing Director & CEO, Maruti Suzuki India Ltd.

Ichizo Aoyama

Executive General Manager, R&D/Global IT[Managing Officers]

Managing Officer

Toshiaki Hasuike

Deputy Executive General Manager, Automobile Engineering / Joint Managing Director, Maruti Suzuki India Ltd. (Engineering, Quality Control, Purchasing and Manufacturing)

Hiroyasu Uchida

Executive General Manger, Administration / Managing Officer, Human Resources Dept.

Takashi Iwatsuki

Executive General Manager, Global Marketing Administration & PlanningKazuo Hakamata

Executive General Manager, Purchasing

Hiroaki Matsuura

Executive General Manager, Manufacturing Engineering / General Manager, Manufacturing Engineering Dept.IV

Seiichi Furusho

President, Suzuki Motor Sales Fukuoka Inc.

Tadashi Kondo

Associate Officer, Gujarat Project

Motoo Murakami

Deputy Executive General Manager, Motorycle Operations

Masato Kasai

Deputy Executive General Manager, Automobile Engineering

Izumi Oishi

Executive General Manager, Manufacturing

Taisuke Toyoda

Executive General Manager, Finance / Managing Officer, Finance Dept.

Masahiko Nagao

Executive General Manager, Corporate Planning Office

Tatsuyoshi Okusa

President, Suzuki Motor Sales Hyogo Inc.

Tomoyoshi Aiso

President, Suzuki Motor Sales Ibaraki Inc.

Hirofumi Nagao

Managing Director, Pak Suzuki Motor Co., Ltd. (Pakistan)

Keiichi Asai

Based in Chongqing Changan Suzuki Automobile Co., Ltd. (China)

SUZUKI MOTOR CORPORATION 17

Management Policy

Management Policy
1. Basic policies for profit distribution
We determine the profit distribution based on the performances, dividend payout ratio, strengthening of the corporate nature and fullinternal reserve for future business developments from the medium- to long-term viewpoint, with the emphasis on the continuous andstable distribution.
The Group has a structure in which profits are highly dependent on overseas manufacturing plants. They are mainly located in developing countries, and are therefore subject to exchange rate fluctuations. To achieve stable growth, we need to further enhance our corporate structure and prepare for unforeseen circumstances.
In future years, under the foregoing point of view, we will also determine the profit distribution based on the performance of fiscal year.

2. Corporate governance issues(1) Basic concepts regarding corporate governanceThrough fair and efficient corporate activities, The Company always intends to be trusted by all our stakeholders including shareholders,customers, partner companies, local communities and employees, and to be a continuously growing company, while making a further contribution to the international community. In order to realize that intention, The Company considers that the enhancement of the corporate
governance is one of the most important issues for proper corporate management and is aggressively taking various kinds of measures.
Also, in order to be trusted further by society and stakeholders, we disclose information quickly in fair and accurate manner prescribedin laws and regulations and aggressively disclose information that we concluded is beneficial to understand The Company. We will further enhance the transparency of The Company.

18 SUZUKI MOTOR CORPORATION

Management Policy(2) Organization of The Company
General Meeting of Shareholders

Board of Directors
9 Directors (2 Outside Directors)

Corporate Planning Committee

Board of Company
Auditors
5 Auditors(3 Outside Auditors)

Independent
Auditor

Audit Department
Corporate Ethics Committee

Management
Council

Crisis Management
Task Force
Consultation
Service

Each Divisions of The Company / Subsidiaries and affiliates of The Company(a) Execution of Operation(Board of Directors)
In addition to the regular meetings of the Board of Directors composed of 9 Directors including 2 Outside Company Directors
held every month, Directors hold a special board meeting whenever necessary, and discuss the matters set forth in the Articles
of Incorporation and the laws and regulations, and important managerial agenda based on the deliberation criteria, and makedecisions on a sufficient discussion, including in terms of regulatory compliance and corporate ethics, and make oversight ofbusiness execution.
In addition, all Directors, excluding Chairman & CEO and Outside Directors, also work as leaders for accomplishment of tasks
such as Executive General Manager of each division or other functional units to allow for discussion based on site information atboard meetings for making proper decisions in line with actual situations of each department.
For the purpose of enabling the agile corporate management and executing operations and clarifying the individual responsibilities, The Company has introduced a Senior Managing Officer and Managing Officer system and reduced the number of Directors.
In order to clarify managerial accountability for individual Directors and flexibly respond to the changing business environment,
the term of each Director is set to one year.
(Outside Directors)
By electing Outside Directors (2 Directors as of 148th Ordinary General Meeting of Shareholders held on June 27, 2014) who arehighly independent of The Company and have no possibility of causing conflict of interest between them and shareholders, The
Company enhanced supervision to management further, and is receiving helpful advice and indication based on large stock ofexperience and professional knowledge regarding execution of operation.
(Corporate Planning Committee)
At the Corporate Planning Committee which is composed of 4 Executive Vice Presidents as a council-system organization, important missions for management at each department are cross-functionally and comprehensively reviewed and basic concepts
are adjusted and established. In order to embody the said basic concepts, The Company has the Corporate Planning Office.
(Various meeting on execution of operation)
The Company enhances efficiency of management by sharing important information on execution of operation. To achieve that,
The Company takes various measures such as holding management councils to discuss the strategic decision on execution ofimportant management issues. Members of the council include Directors, Executive General Managers and Deputy Executive
General Managers. Furthermore, they mutually exchange information through weekly meetings to identify administrative issues
early and execute operation appropriately.
SUZUKI MOTOR CORPORATION 19

Management Policy(b) Audit and supervision(Board of Company Auditors)
The Company adopts a Company Auditor system. The Board of Company Auditors composed of 5 members including 3 Outside
Company Auditors holds regular meetings every two months and holds a special board meeting whenever necessary.
Company Auditors execute audits on proper management of The Company, in accordance with the Rules of the Board of Company Auditors and audit policies of the corresponding fiscal year, by participating in important meetings such as that of the Boardof Directors and management councils, perusing approval documents and various minutes, and receiving reports and explanationfrom Directors on execution of business, etc.
In addition, majority of Company Auditors are Outside Company Auditors who are highly independent of The Company and have no
possibility of causing conflict of interest between them and shareholders. Their wide experiences and knowledge in legal matters, management of enterprises, accounting and other areas enhance the audit function and oversight function from outside The Company.
2 Company Auditors and 1 Outside Company Auditor have large stock of knowledge in finance and accounting due to long experience of being in charge of accounting in The Group as to Company Auditors, and large stock of experience as certified public
accountant as to Outside Company Auditor respectively.
(Audit Department)
44 members in Audit department audit The Company and domestic and foreign subsidiaries and affiliates, and periodically check theeffectiveness of their internal control system. Results of the checks are reported to management and Company Auditors together
with suggestions regarding improvement and correction of problems. The audit department also helps to make rules for enhancement of management structures, conducts guidance and supports for compliance with the laws, regulations and rules and promotes
efficiency and standardization of their business.
Company Auditors adjust audit plans and auditing themes of the audit department, attend its audit and receive reports and explanation on all its audits whenever necessary. Company Auditors also execute internal auditing and auditing on subsidiaries as Company
Auditors’ auditing in cooperation with the audit department.
The audit department and Company Auditors exchange information with organization specialized in internal audit, which consists oflegal, finance and IT system department.
(Independent Auditor)
Seimei Audit Corporation is assigned as an Independent Auditor for The Company. The Board of Company Auditors receives
explanation from Independent Auditor on audit plans for the corresponding fiscal year, reports on audit on the finance and accounting statements of quarters and fiscal year end, and also reports on audit on subsidiaries. The Board of Company Auditors,
audit department and Independent Auditor create a closer connection by exchanging information whenever necessary.
CPA who engaged in the audit

Auditing company CPA belongs to

Designated and engagement partner Satoru Imamura

Seimei Audit Corporation

Designated and engagement partner Koji Sato

Seimei Audit Corporation

Note: The number of other assistant members for audit: 7 certified public accountants and 8 others.

Company Auditors, audit department and Independent Auditor cooperate appropriately and audit concerning compliance withlaws, internal control, and management efficiency from three different angles.
(c) Function, role and status of Outside Director
In order to strengthen supervision and audit to management further, The Company adopted Outside Director system at General Meetingof Shareholders held on June 28, 2012 and elected 2 Outside Directors at General Meeting of Shareholders held on June 27, 2014. As
to 3 Outside Company Auditors, The Company elected Outside Company Auditors who are more independent of The Company.
The Company elected Mr. Masakazu Iguchi as Outside Director to receive appropriate advice related to the management of The
Company in manufacturing industry based on a large stock of expertise as a doctor of engineering. He currently serves as Director of Suzuki Foundation (part-time).
Suzuki Foundation has transactions with The Company and subsidiaries such as endowment which are less than 0.01% of consolidated net sales of The Company. There are no special interest between him and The Company. The Company believes that heis sufficiently independent of the management of The Company.
The Company elected Mr. Sakutaro Tanino as Outside Director to receive appropriate advice related to the management of The
Company from the international viewpoints based on a large stock of experience and knowledge as a diplomat. He served as Director of Toshiba Corporation until June 2007, and he has assumed as Director of it in June 2014.
20 SUZUKI MOTOR CORPORATION

Management Policy

Toshiba Corporation has transactions with The Company which are about 0.06% of consolidated net sales of The Company. There
are no special interest between him and The Company. The Company believes that he is sufficiently independent of the management of The Company.
The Company elected Mr. Shin Ishizuka as Outside Company Auditor to appropriately conduct audit of The Company based on his
experience and professional knowledge as an attorney-at-law. There are no interest between him and The Company. The Company believes that he is sufficiently independent of the management of The Company.
The Company elected Mr. Masataka Osuka as Outside Company Auditor to appropriately conduct audit of The Company based ona long term experiences and knowledge as a management of enterprises. He currently serves as Chairman of the Board of Hamakyorex Co., Ltd., Director of Kinbutsurex Co., Ltd., (Subsidiary of Hamakyorex Co., Ltd.) (part-time), Director of Suzuki Education& Culture Foundation (part-time), and president of Hamamatsu Chamber of Commerce and Industries. He also served as Directorof Chotokan (part-time) until June 2012.
Hamakyorex Co., Ltd. has transactions with subsidiaries of The Company which are less than 0.01% of consolidated net sales of The Company.
Kinbutsurex Co., Ltd. (subsidiary of Hamakyorex Co., Ltd.) has transactions with The Company which are less than 0.01% of consolidated net sales of The Company.
Subsidiaries of Hamakyorex Co., Ltd. have transactions with subsidiaries of The Company which are about 0.02% of consolidated
net sales of The Company.
Suzuki Education & Culture Foundation has transactions with The Company such as endowment and others which are less than
0.01% of consolidated net sales of The Company.
Hamamatsu Chamber of Commerce and Industries has transactions with The Company and its subsidiaries which are less than
0.01% of consolidated net sales of The Company.
Chotokan has transactions with The Company and its subsidiaries which are less than 0.01% of consolidated net sales of The Company.
There are no special interest between him and The Company. The Company believes that he is sufficiently independent of the
management of The Company.
The Company elected Mr. Norio Tanaka as Outside Company Auditor to appropriately conduct audit of The Company based on a large
stock of the experiences and the professional knowledge as a certified public accountant. There are no interest between him and The
Company. The Company believes that he is sufficiently independent of the management of The Company.
The Company concluded that all 5 members of Outside Director/Company Auditor have no possibility of causing conflict of interest
between them and shareholders, and filed them as independent director/auditor under the rules of the Tokyo Stock Exchange, Inc.
As to independence from The Company with regard to the election of Outside Director/Company Auditor, The Company judges
their independence under “Standard of judgment” set by Tokyo Stock Exchange, Inc.
The Company makes decision on important issue regarding to management through discussion in meeting of board of Directors
and management council in which principally all Directors and auditors participate. The Company believes that corporate governance of The Company functions sufficiently.

(3) Development status of internal control system and risk management system
In order to enhance corporate governance, The Company is making efforts to keep everyone informed about compliance and to strengthen internal control system. The basic policy for construction of internal control system and its development status are as follows:(a) Compliance system for Directors
Directors respect the “Mission Statement” and the “Suzuki Activity Charter” and execute their duties in compliance with the “Rulesof the Board of Directors”, the “Approval Procedures” and other rules of The Company, and mutually supervise their executionof duties through meetings of the Board of Directors, etc. And The Company established the "Suzuki Rules of Corporate Ethics" which lays out a set of basic points for Directors and employees to act in a fair and faithful manner in compliance with thelaws, regulations, social rules and in-company rules. It is revised whenever necessary by “Corporate Ethics Committee” which
promotes corporate ethics in The Company. And Company Auditors audit the execution of duties of Directors in accordance withthe audit policies and work responsibilities set by the Board of Company Auditors.

SUZUKI MOTOR CORPORATION 21

Management Policy(b) Compliance system for employees
In order to ensure that employees execute their duties in compliance with the law and the Articles of Incorporation of The Company, The Company is making effort to keep everyone informed about the “Suzuki Employees’ Activity Charter” which lays out thenorms of action of employees, the “Approval Procedures” and the “Job Description” which set up the proceedings of executionof their duties in details, and other rules of The Company. They are revised whenever necessary. Furthermore, in accordance withthe “Suzuki Rules of Corporate Ethics”, The Company has developed compliance system for employees including internal reportsystem, and has been educating them through various training and in-house seminars regarding compliance. And, in accordancewith the “Rule of Internal Auditing”, the audit department audits on the correctness of various control systems, organizations andrules, and properness of function of internal control, etc.
(c) Crisis management system“Crisis Management Procedures” are laid down within the “Suzuki Rules of Corporate Ethics” as a countermeasure to crisis that
may occur from illegalities and injustices inside/outside The Company, or natural disasters or terrorism, which are impossible for
The Company to prevent. When the “Corporate Ethics Committee” finds risks that may cause urgent and serious damages to thecorporate management and business operations, the committee immediately sets up a “Crisis Management Task Force” in linewith the “Crisis Management Procedures” in order to deal with the crisis. This organization swiftly disuccsses and decides on thepolicies and measures to be taken against the risk occurred and gives instructions to the appropriate departments and divisions
which are then able to communicate each other to solve the problem.
(d) System to ensure proper business operation of the corporate group
To ensure a proper business operation of the corporate group which consists of The Company and its subsidiaries, The Company
has established the “Rules of Business Control Supervision”. It is revised whenever necessary. The subsidiaries report to The
Company on their business operation and consult with The Company on important matters in accordance with those rules, anddepartments in charge give guidance and advice to them to enhance their management structure. And our audit department
helps to make rules for the subsidiaries, conducts guidance, supporting and auditing for their regulatory compliance. It also promotes efficiency and standardization of their business.

(4) Remuneration for Directors and Company Auditors for current fiscal year(a) Remuneration paid to Directors and Company Auditors is as follows:(Amount of remuneration: million yen, Number of payees: person)
Amount of each type of remuneration

Total amount of
remuneration

Basic pay

Stock option

Bonus

Directors (excluding Outside Directors)

576

305

85

185

10

Company Auditors(excluding Outside Company Auditors)

57

40

-

16

2

Outside Directors/Company Auditors

29

22

-

7

5

Classification

Notes:

Number of payees

1. The amount of remuneration limit for Directors (¥80 million per month) was resolved at the 135th Ordinary General Meeting of Shareholders held on June 28, 2001.
2. The amount of remuneration limit for Company Auditors (¥8 million per month) was resolved at the 123rd Ordinary General Meeting of
Shareholders held on June 29, 1989.
3. The maximum amount of remuneration for Directors for stock options as compensation (¥170 million per year) was resolved at the 146th
Ordinary General Meeting of Shareholders held on June 28, 2012 and 147th Ordinary General Meeting of Shareholders held on June 27, 2013.
4. The above-mentioned Stock option are recorded as stock options as compensation in current fiscal year as expenses.
5. The above-mentioned bonuses are recorded as provision for Directors' bonuses at the end of current fiscal year and treated as expenses of current fiscal year.
6. The above includes 3 Directors who retired at the end of the 147th Ordinary General Meeting of Shareholders held on June 27, 2013.
7. In addition to the above, ¥47 million was paid to 2 retired Directors as retirement benefits for Directors under the resolution at the140th Ordinary General Meeting of Shareholders held on June 29, 2006.
8. The following information is disclosed in 148th annual securities report		• Total amount of consolidated remuneration paid to persons who received consolidated remuneration of ¥100 million or more each.

22 SUZUKI MOTOR CORPORATION

Management Policy(b) Policy for determination of the amount of remuneration for Directors and Company Auditors
Remuneration for Directors/Company Auditors consists of basic remuneration, bonuses and stock options with respect to Directors, and basic remuneration and bonuses with respect to Company Auditors.
While The Company discontinued its retirement benefits plan for Directors and Company Auditors at the 140th Ordinary General
Meeting of Shareholders, held on June 29, 2006, it has introduced the granting of stock options as compensation with a view toward strengthening Directors’ connection to The Company’s performance and stock price and ensuring that Directors share withshareholders not only the benefits of any increases in the stock price, but also the risks of any declines, pursuant to the approval
granted at the 146th Ordinary General Meeting of Shareholders, held on June 28, 2012.
(Director)
As for basic remuneration, the amount of remuneration limit (monthly amount) for all Directors shall be determined by a resolution of
a General Meeting of Shareholders, and the amount of remuneration for each Director shall be determined by the representative Director who is authorized by the Board of Directors in consideration of the duties and responsibilities of each Director to enhance thecorporate value in each fiscal year and on a mid-and long-term basis.
As for bonuses, the Board of Directors will decide on a proposal regarding bonus payments to Directors/Company Auditors in considerationof the management environment and The Company’s performance in each fiscal year, and the representative Director who is authorized
by the Board of Directors will decide, pursuant to the approval of a General Meeting of Shareholders concerning the total amount of thebonus, the amount of the bonus for each Director that reflects each Director’s achievement of his or her duties and responsibilities.
As for granting stock options as compensation, the Board of Directors will decide, pursuant to the approval of a General Meeting of
Shareholders concerning the maximum amount of remuneration, etc. with respect to the stock acquisition rights in each fiscal year,
the allocation of stock acquisition rights to each Director (excluding Outside Directors).
(Company Auditor)
As for basic remuneration, the amount of remuneration limit (monthly amount) for all Company Auditors shall be determined by aresolution of a General Meeting of Shareholders. As for bonuses, the total amount of bonuses shall be determined through the approval of a General Meeting of Shareholders in each fiscal year.
The amount of the basic remuneration and bonus for each Company Auditor shall be determined through consultations among Company Auditors in proportion to each Company Auditor’s duty and responsibility.

(5) Remuneration for Independent Auditor for current fiscal year(a) The remuneration amount to be paid by The Company to Independent Auditors is ¥84 million.
(b) The remuneration amount to be paid by The Group to Independent Auditors is ¥87 million.
*The amounts shown in (a) and (b) were all paid for audit certification.
Because the remuneration amount for the audit under Companies Act of Japan and for the audit under Financial Instrument and Exchange Act
of Japan is not divided in the Auditing Agreement between The Company and Independent Auditor and is not be able to be actually divided, theamount described in the above specifies the total of these remuneration amounts.

(Reference)
Internal Control Report System under the Financial Instruments and Exchange Act of Japan
Effective from the fiscal year ended March 31, 2009, Internal Control Report System has been applied under the Financial Instruments
and Exchange Act of Japan. The Company has established a project team to enhance the system for assessment of the effectiveness ofinternal controls over the financial reporting.
Our management executive assessed the effectiveness of internal control over financial reporting as of March 31, 2014 in accordancewith “On the Setting of the Standards and Practice Standards for Management Assessment and Audit concerning Internal Control Over
Financial Reporting (Council Opinions) ” published by the Business Accounting Council of Financial Services Agency, The Japanese government. Based on that assessment, our management executive concluded that our Group’s internal control over financial reporting was
effective as of March 31, 2014.
Seimei Audit Corporation, The Company’s Independent Auditor, has audited the Internal Control Report made by our management executive,and expressed an unqualified opinion regarding effectiveness of The Group’s internal control over financial reporting as of March 31, 2014.

SUZUKI MOTOR CORPORATION 23

Risks in Operations

Risks in Operations
Risks that may affect the management results, stock price and financial situation of The Group include the followings.
Forward-looking statements in this section are based on our conclusions as of March 31, 2014.

Risk relating to markets(1) Change in economic situations, demand fluctuation in the markets
The long term economic slowdown, world economic deterioration and financial crisis, and the reduced buying motivation of the consumers
may lead to a substantially reduced demand for the products of The Group including motorcycles, automobiles and outboard motors. They
may also affect the performance and financial conditions of The Group.
In addition, we conduct businesses around the world, and our dependency on the overseas manufacturing plants especially in the developing countries of the Asian regions has been increasing over the years. The unexpected situation in these markets such as the rapid change
in the economic situations may affect the performance and financial conditions of The Group. Further, unexpected change or new application of tax systems in each country may also affect the performance and financial conditions of The Group.

(2) Severer competitions with other companies
We are facing competitions with rival companies in every global market where we conduct our businesses. As the automobiles and motorcycles industries in the world are globalized further, competitions may get harder. Competitions with other companies include various
aspects such as product quality, safety, price, environmental performance, as well as efficiency of product development and manufacturingsystem, establishment of sales and service systems and sales finance.
We will make further efforts for maintaining and improving our competitive edges, but there may be risks that impede our competitive advantages.

Risk relating to business(1) New product development and launching abilities
It is very important for an automobile and motorcycle manufacturer to correctly understand customer needs and to develop and launch tothe market new attractive products that satisfy the customers in a timely manner. It has become more important than ever to understandcustomer needs that rapidly change, such as the reduced demands caused by domestic and overseas economic slowdown and the increased interest in the environmental performance.
In addition, launching of new products will require specific product development abilities as well as abilities to continually manufacture
products in addition to appropriately understanding customer needs.
However, even if we are able to appropriately understand the customer needs, we may not be able to develop new products matching thecustomer needs in a timely manner on account of technical abilities, procurement of parts, production capabilities and other factors. If weare unable to launch products matching the customer needs to the market in a timely manner, the sales share and sales may be reduced,
which may adversely affect the performance and financial conditions of The Group.

(2) Change in product prices and purchase prices, dependence on specific suppliers
Various factors including insufficient supply or price rise of specific parts and raw materials, unstable economic conditions, revisions ofimport regulations and harder price competition may rapidly change the product prices and purchase prices of The Group. There is no
guarantee that such rapid price change does not last long or such change does not occur in the markets where there have not been suchchanges so far. Rapid changes in product prices and purchase prices may adversely affect the performance and financial positions of The
Group in any market where we conduct our businesses.
In addition, the procurement of some of the parts has been limited to specific suppliers on account of technical abilities, quality, and pricecompetitiveness. If we are unable to obtain the parts continuously and stably on account of unforeseeable accidents of the suppliers, it
may adversely affect the performance and financial conditions of The Group.

(3) Business development in various countries in the world
We have been conducting our businesses in various countries in the world, and in some of the countries, we conduct joint ventures withlocal companies in accordance with local laws or other requirements. These businesses are restricted by various legal and other regulations in each country (including those related to tax, tariff, overseas investment and fund transfer to the home country). Any changes tosuch regulations, or management policies or management environment of the joint venture partners may adversely affect the performanceand financial conditions of The Group.

24 SUZUKI MOTOR CORPORATION

Risks in Operations(4) Fluctuations of exchange rates and interest rates
We export motorcycles, automobiles, outboard motors and related parts to various countries in the world from Japan. In addition, we export
those products and parts from the overseas manufacturing plants to multiple other countries. Fluctuations of exchange rates may adversely
affect the performance and financial conditions of The Group as well as our competitiveness.
Further, the exchange fluctuations will affect the price setting of the products sold by The Company in foreign currencies as well as theprice of the raw materials purchased. The ratio of the overseas sales has reached about 60 percent of consolidated sales for the current
consolidated fiscal year, and transactions in foreign currencies account for significant part. We take hedging measures such as forward exchange contracts to reduce the risks of exchange-rates and interest-rates fluctuations, but it is impossible to hedge every risk, and the yen
appreciation against other currencies may adversely affect the performance and financial conditions of The Group. On the contrary, the yen
depreciation may result in opportunity losses.

(5) Government regulations
Various legal regulations are applied to the motorcycle, automobile and outboard motor industries in relation to the emission level of emission gas, mileage, noises, safety and contaminated material emission level from the manufacturing plants. These regulations may be revised, in many cases strengthened. Expenses to comply with these regulations may largely affect the performance of The Group.
In addition, many governments determine the imposition of tariffs, price control regulations and exchange control regulations. The Groupis paying expenses to comply with these regulations and will expect to continue bearing them. We may pay more expenses depending on
the establishment of new laws or changes of existing laws. Further, unexpected changes or new application of tax systems and economic
measures of each country may adversely affect the performance and financial conditions of The Group.

(6) Quality assurance
We place the top priority on the product safety and make efforts to establish the quality assurance system from development to sales. We
buy insurance for the product liability, but there are risks not covered by insurance. The occurrence of large expenses for a large-scale recall to ensure safety of the customers may adversely affect the performance and financial conditions of The Group.

(7) Alliance with other companies
We conduct various alliance activities with automobile manufacturer around the world and other companies such as for research and development, manufacturing, sales and finance, but factors that cannot be controlled by The Group such as situations inherent to the alliancepartners may adversely affect the performance and financial conditions of The Group.

(8) Legal proceedings
We may become a party to lawsuits and other legal proceedings in the course of our business activities. In the case where any judgments
disadvantageous to us are made in such legal proceedings, they may adversely affect the performance and financial conditions of The Group.

(9) Influences of natural disasters, wars, terrorism and strikes, etc.
The major manufacturing plants of The Group in Japan conduct manufacturing activities, located mainly in the Tokai region. In addition, thehead office and other facilities of The Company are also concentrated in the Tokai region. Any occurrences of Tokai and Tonankai Earthquake may adversely affect the performance and financial condition of The Group largely. We have taken various preventive measures suchas quake-resistant measures for buildings and facilities, fire preventive measures, establishment of BCP (Business Continuity Plan), purchases of earthquake insurances to minimize the influences of damage by such disasters.
We also conduct businesses around the world and are subject to number of risks relating to our overseas operations. Such risks include political or social instability and difficulties, natural disasters, diseases, wars, terrorism and strikes. These unexpected events may delay or suspend
the purchase of raw materials and parts, manufacturing, sales of products, and provision of logistics and services. If such delay or suspension
caused by any of these factors occur or prolong, they may adversely affect the performance and financial conditions of The Group.
Further, there are various risks other than those mentioned above, and what have been stated in this section do not represent all the risksof The Group.

SUZUKI MOTOR CORPORATION 25

The Status of the Corporate GroupThe Status of the Corporate GroupThe outline of the corporate group
The corporate group of the Company consists of subsidiaries of 134 companies and affiliates of 37. The
main businesses are manufacturing and marketing of motorcycles, automobiles, marine & power products,
motorized wheelchairs, electro senior vehicles and houses, further developing the businesses of logistics
and other services related to the respective operations.
The position of the group companies in relation to the segmentation is as follows.

Motorcycle

Marine and Power products, etc.

Motorcycles are manufactured by the Company as well as in overseas, by a subsidiary Thai Suzuki Motor Co., Ltd. and an affiliate,
Jinan Qingqi Suzuki Motorcycle Co., Ltd. and others. Some of parts
are manufactured by a subsidiary, Suzuki Auto Parts Mfg. Co., Ltd.
and others, and those parts are purchased by the Company.
The marketing of the motorcycles is conducted in the domestic
market by a subsidiary, Suzuki Motorcycle Sales Inc. and othermarketing companies, and in overseas markets through a subsidiary, Suzuki International Europe GmbH and other marketing companies and manufacturing & marketing companies.

Outboard motors are manufactured mainly by the Company andmarketed by a subsidiary, Suzuki Marine Co., Ltd. and others.
In the domestic market, the marketing of motorized wheelchairs and electro senior vehicles are conducted by a subsidiary, Suzuki Motor Sales Kinki Inc. and others, and the marketing of houses is conducted by a subsidiary, Suzuki BusinessCo., Ltd.

Automobile
Automobiles are manufactured by the Company as well as in overseas, by subsidiaries, Magyar Suzuki Corporation Ltd., Maruti Suzuki India Limited and by an affiliate, Chongqing Changan Suzuki
Automobile Co., Ltd. and others. Some of parts are manufactured
by Suzuki Auto Parts Mfg. Co., Ltd. and others, and they are purchased by the Company.
The marketing of automobiles is carried out in the domestic market by a subsidiary, Suzuki Motor Sales Kinki Inc. and other marketing companies throughout the market, and in overseas markets, by a subsidiary, Suzuki International Europe GmbH and othermarketing companies and manufacturing & marketing companies.
The business of logistics services is conducted by a subsidiary,
Suzuki Transportation & Packing Co., Ltd.

26 SUZUKI MOTOR CORPORATIONThe Status of the Corporate GroupOperation Flow Chart
Operation flow chart is as follows (Major companies only)

No marks : Subsidiaries: Affiliates
M/C A/M M/P

Magyar Suzuki Corporation Ltd.

Flow of services

PT Suzuki Indomobil Motor○

Maruti Suzuki India Ltd.

M/C : Motorcycle
A/M : Automobile
M/P : Marine and Power products, etc.

Suzuki Motorcycle India Private Ltd.
Pak Suzuki Motor Co., Ltd.

○○

Suzuki Motor (Thailand) Co., Ltd.
Thai Suzuki Motor Co., Ltd.

Suzuki Auto Parts Mfg. Co., Ltd.

M/C A/M M/P○

Snic Co., Ltd.
Hamamatsu Pipe Co., Ltd.
☆ Hamana Parts Industry Co., Ltd.

○

Suzuki Philippines Inc.

○

Suzuki Manufacturing ofAmerica Corp.

○

Suzuki Motor de Colombia S.A.

○

☆ Chongqing Changan
Suzuki Automobile Co., Ltd.

Suzuki Transportation& Packaging Co., Ltd.

○
○
○

○

○
○

○

☆ Jinan Qingqi Suzuki
Motorcycle Co., Ltd.

○

Overseas Marketing Companies

M/C A/M M/P○○

M/C A/M M/P○○☆ Jiangxi Changhe Suzuki
Automobile Co., Ltd.

○

○

○

○

○

○

Suzuki Italia S.p.A.

○○

Suzuki Austria
Automobil Handels GmbH○○

Suzuki International Europe GmbH
Suzuki GB PLC
Suzuki France S.A.S.

Logistic Services

○

○

○

The Company

Domestic Manufacturing Companies

○

○

○

Suzuki Finance Europe B.V.
Suzuki Australia Pty. Ltd.
Suzuki Motor de Mexico, S.A. de C.V.
Domestic Marketing Companies
Suzuki Motorcycle Sales Inc.

○

○

○

○

○

Suzuki Motor Iberica,S.A.U.
Suzuki Motor of America, Inc.

○

○

○

○

○

○

○

○

○

○

M/C A/M M/P○

Suzuki Motor Sales Tokyo Inc.

○○

Suzuki Motor Sales Hamamatsu Inc.

○

Suzuki Motor Sales Kinki Inc.
Suzuki Marine Co., Ltd.

○

Suzuki Finance Co., Ltd.

○

Other Domestic Companies

M/C A/M M/P

Suzuki Business Co., Ltd.

Dealers and Customers

Overseas Manufacturing &Marketing Companies

Flow of products, parts

○

○

○

SUZUKI MOTOR CORPORATION 27

FINANCIAL SECTIONCONTENTSManagement discussion and analysis.......................................................... 29
Five-Year Summary...................................................................................... 31
Consolidated Financial Statements.............................................................. 32
Consolidated Balance Sheets.............................................................................. 32
Consolidated Statements of Income andConsolidated Statements of Comprehensive Income..................................... 34
Consolidated Statements of Changes in Net Assets............................................. 36
Consolidated Statements of Cash Flows.............................................................. 37
Notes to Consolidated Financial Statements....................................................... 38
Independent Auditor’s Report.............................................................................. 63

28 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 increased by ¥36.3 billion (15.8%) to ¥266.6 billion year-on-year, mainly owing to the impact of the exchange
rate and launch of new large-displacement motorcycle V-Strom 1000 ABS in Europe. As for the operating income, the operating loss of ¥11.9 billion in the previous fiscal year became an operating income of ¥100 million, slightly turning into the black
for the first time in six fiscal years, mainly owing to improvement in income of large displacement motorcycles.
(b) Automobile
The Japanese domestic net sales increased year-on-year as a result of expanding its sales and strengthening the products
such as by improvement in fuel efficiency of the Alto Eco and launch of new-genre mini passenger car Hustler, in addition
to great sales of the Spacia, as well as the impact of last-minute demand due to increase in consumption tax rate. As for theoverseas, the net sales increased year-on-year mainly owing to increase in Europe, India, and Indonesia. As a result, theoverall net sales of the automobile business increased by ¥317.9 billion (13.8%) to ¥2,615.7 billion year-on-year. The operating income increased by ¥28.7 billion (19.0%) to ¥179.3 billion year-on-year, mainly owing to improvement in export profit fromJapan by the impact of the exchange rate and increase in income in Asia.
(c) Marine and Power products, etc.
The net sales increased by ¥5.8 billion (11.6%) to ¥56.0 billion year-on-year, mainly owing to increase in sales of outboard motors in Europe. The operating income increased by ¥2.4 billion (41.5%) to ¥8.3 billion year-on-year.

(2) The operating results by geographical areas(a) Japan
The net sales increased by ¥149.6 billion (9.6%) to ¥1,701.7 billion year-on-year. The Company was able to increase sales bycovering decrease in OEM sales with increase in sales of Suzuki brand vehicles, impact of the exchange rate and others. The
operating income increased by ¥32.0 billion (31.2%) to ¥134.5 billion year-on-year because of improvement of export profit
owing to the impact of the exchange rate and other causes.
(b) Europe
The net sales increased by ¥118.2 billion (45.8%) to ¥376.5 billion year-on-year owing to launch of C-segment crossovermodel SX4 S-CROSS, new large displacement motorcycle and other causes. The operating loss of ¥1.1 billion in the previous
fiscal year became an operating income of ¥4.2 billion, turning into the black.
(c) Asia
The net sales increased by ¥194.4 billion (19.8%) to ¥1,175.4 billion year-on-year mainly owing to increased sales of automobiles in Indonesia and Thailand, impact of exchange rate and other causes. The operating income increased by ¥21.3 billion(56.1%) to ¥59.4 billion year-on-year.
(d) Other areas
The net sales decreased by ¥18.1 billion (10.7%) to ¥151.0 billion year-on-year owing to winding down of automobile marketing business in the United States and other causes. The operating income decreased by ¥2.9 billion (92.1%) to ¥200 million
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 ¥93.3 billion (18.1%)
to ¥607.8 billion year-on-year because of increase of sales expenses such as advertising expenses.

(4) Other income and expenses

In the current consolidated fiscal year, the net amount of other income and expenses was a gain of ¥9.3 billion, which increased by ¥14.5
billion year-on-year. This was mainly due to decrease of loss on liquidation of subsidiaries and affiliates from the previous fiscal year.

SUZUKI MOTOR CORPORATION 29

Management discussion and analysis(5) Forecasts for the next fiscal year

As for the next fiscal year, by closely looking at the impact of recoil reduction of last-minute demand due to increase in consumption tax rate in Japan, and economic trends in emerging Asian markets such as India, Indonesia, and Thailand in overseas, The
Group will work as one to reform in every field to accomplish more than the below forecasts for the consolidated operation by
developing the business activity.
(Forecasts for the consolidated operating results-First Half)
Net Sales¥1,400.0 billion(up 2.2% year-on-year)
Operating income¥91.0 billion(up 0.8% year-on-year)
Net income¥55.0 billion(up 6.5% year-on-year)(Forecasts for the consolidated operating results-Full Year)Net Sales¥3,000.0 billion(up 2.1% year-on-year)
Operating income¥188.0 billion(up 0.1% year-on-year)
Net income¥115.0 billion(up 7.0% year-on-year)
Foreign exchange rates 100 yen/US$, 135yen/Euro, 1.65yen/Indian Rupee		
0.85yen/100Indonesian Rupiah, 3.10yen/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 FY2013 amounted to ¥322.9 billion (¥190.1 billion was provided in the previous fiscal year), and ¥286.6 billion was used for the acquisition of property, plant and equipment etc. in the investment activities (¥210.6
billion was used in the previous fiscal year). As a result, free cash flow amounted to ¥36.3 billion of positive (¥20.5 billion of negative for the previous fiscal year). In financing activities, ¥2.8 billion was provided by net increase of short term loan and others (¥33.6
billion was used in the previous fiscal year).
As a result, the balance of cash and cash equivalents at the end of FY2013 amounted to ¥710.6 billion and increased by ¥49.5
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 ¥213.6 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 ¥230.0 billion. The required fund will be covered mainly by our own funds.

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.

30 SUZUKI MOTOR CORPORATIONFive-Year Summary
SUZUKI MOTOR CORPORATIONCONSOLIDATED

Thousands of
US dollars(except per
share amounts)

Millions of yen(except per share amounts)

Years ended March 31

Net sales.......................................
Net income...................................

2014

2013

2012

2011

2010

2014

¥2,938,314¥2,578,317¥2,512,186¥2,608,217¥2,469,063

107,484$28,549,496

80,38953,88745,17428,913

1,044,346

191.60143.31

96.06

80.65

62.76

1.86

131.67

88.28

74.11

55.26

18.00

15.00

13.00

12.00

1,298,553

1,111,757

1,106,999

1,089,757

1,560,218

1,509,568

1,372,885

1,479,336

2,487,635

2,302,439

2,224,344

2,381,314

93,680103,117

138,368

141,846

Net income per share:
Primary......................................
Fully diluted.............................
Cash dividends per share............
Net assets.....................................
Total current assets.......................
Total assets...................................
Depreciation and amortization.....

191.5724.00

1,494,357

1,790,832

2,874,074

117,188

NON-CONSOLIDATED

Net sales.......................................
Net income...................................

0.23

14,519,602

17,400,238

27,925,327

1,138,639

Thousands of
US dollars(except per
share amounts)

Millions of yen(except per share amounts)

Years ended March 31

1.86

2014

2013

2012

2011

2010

2014

¥1,498,853¥1,422,595¥1,383,269¥1,409,205¥1,286,633

67,219$14,563,284

36,405

15,846

10,834

7,086

653,119119.81

64.89

28.25

19.34

15.38

119.79

1.16

59.64

25.98

17.80

13.57

18.00

15.00

13.00

12.00

859,224

761,353

703,292

691,207673,803

921,352

921,669

818,964

899,655

1,641,700

1,597,903

1,524,232

1,625,023

35,62638,532

61,26572,359Net income per share:
Primary......................................
Fully diluted.............................
Cash dividends per share............
Net assets.....................................
Total current assets.......................
Total assets...................................
Depreciation and amortization.....

24.00

1,070,668
1,850,068
33,6051.16
0.23

8,348,468

10,402,916
17,975,787

326,519

Note: Yen amounts are translated into US dollars for convenience only, at ¥102.92 = US$1, the prevailing exchange rate as of March 31, 2014.

SUZUKI MOTOR CORPORATION 31

Consolidated Financial Statements
Consolidated Balance Sheets
As of March 31, 2014 and 2013

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIESASSETS
Current assets:
Cash and cash equivalents *NOTE 4 .....................................

Thousands of
US dollars

Millions of yen

2014

2013

2014

¥ 710,611¥ 661,102$ 6,904,498

310,694

253,237

3,018,792

276,285

261,380

Receivables:
Notes and accounts receivables-trade *NOTE 4 ...............
Allowance for doubtful accounts....................................
Inventories...........................................................................
Deferred tax assets.............................................................
Other....................................................................................
Total current assets.............................................................

(4,804)(5,076)(46,681)2,684,468

105,064

93,307

1,790,832

1,560,218

17,400,238

238,532

211,5122,317,650

392,982

296,266

1,020,835

3,818,325

Property, plant and equipment: *NOTE 5
Land....................................................................................
Buildings and structures.....................................................
Machinery, equipment, vehicles...........................................
Tools, furniture and fixtures...................................................

385,797

1,120,381

378,011368,706
1,067,477
338,607

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

96,56079,075

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

(1,524,862)(1,456,918)

2,219,283

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

Investments and other assets:
Investment securities *NOTE 4 ...............................................
Investments in affiliates *NOTE 4 ............................................
Assets for retirement benefits *NOTE 7..................................

Deferred tax assets.............................................................
Other....................................................................................
Total investments and other assets................................
Total assets..........................................................................

2,065,378

10,885,946

3,672,866
938,212

21,563,189(14,816,000)

694,420

608,460

6,747,188

270,329

199,249

2,626,595

55,69948,24815,862
20,92426,005

388,821¥2,874,074—
36,17935,277
318,956¥2,487,635

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

32 SUZUKI MOTOR CORPORATION

3,748,513

541,191

154,123

203,309

252,680

3,777,900$27,925,327

Consolidated Financial Statements

Thousands of
US dollars

Millions of yen

LIABILITIES AND NET ASSETS
Current liabilities:

Short-term loans payable *NOTE 4 ........................................
Current portion of long-term loans payable *NOTE 4 and 5......

Accounts payable-trade *NOTE 4 ..........................................
Income taxes payable........................................................
Accrued expenses *NOTE 4 ...................................................
Provision for product warranties.........................................
Provision for loss on liquidation of subsidiaries and affiliates.....
Deferred tax liabilities.............................................................
Other....................................................................................
Total current liabilities..........................................................
Noncurrent liabilities:

Long-term loans payable *NOTE 4 and 5 ..................................

Provision for retirement benefits *NOTE 7..............................

Liabilities for retirement benefits *NOTE 7 ..............................

Provision for disaster..........................................................
Deferred tax liabilities.........................................................
Other....................................................................................
Total noncurrent liabilities...................................................
Total liabilities......................................................................

2014

2013

2014

¥ 197,413¥ 171,790$ 1,918,122

433,819

350,472

171,274

155,519

38,74846,62861,447—35,29921,42057,656
5,521

376,487

4,215,115

453,055

1,664,151
597,040—967—

1,056,933

884,616

10,269,468

209,166

220,392

2,032,319

106,634—

36,91886,93537,903—

16,596

17,21430,923

28,84329,179322,783

1,379,717

111
304,464

9,401

1,036,093—

358,712161,251

283,515300,458

3,136,257

1,189,081

13,405,725—

1,340,990

Net assets:
Shareholders’ equity: *NOTE 11
Capital stock:
Common stock: Authorized-1,500,000,000 shares Issued,
as of March 31, 2014 – 561,047,304..............................
as of March 31, 2013 – 561,047,304..............................
Capital surplus....................................................................
Retained earnings..............................................................
Treasury stock.....................................................................
Total shareholders’ equity...................................................
Accumulated other comprehensive income:
Valuation difference on available-for-sale securities.........
Deferred gains or losses on hedges..................................
Foreign currency translation adjustment...........................
Accumulated adjustment for retirement benefits..............
Total accumulated other comprehensive income.............
Subscription rights to shares *NOTE 14 .............................

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

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

138,014—

144,364

1,008,555(57)

138,014
144,364
912,304(86)—

1,402,689
9,799,411(557)

1,290,877

1,194,597

12,542,533

104,745

58,8881,017,739

131

1,687

(72,898)(108,218)

35,846(47,642)

3,867

168

167,464—

84
151,513

1, 276(708,306)
37,582

348,292

1,641

1,627,134¥1,494,357¥1,298,553$14,519,602¥2,874,074¥2,487,635$27,925,327
SUZUKI MOTOR CORPORATION 33

Consolidated Financial Statements

Consolidated Statements of Income and Consolidated Statements of Comprehensive Income(Consolidated Statements of Income)Years ended March 31, 2014 and 2013

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIESNet sales ...............................................................................
Cost of sales ........................................................................

2014

2013

2014

¥2,938,314¥2,578,317$28,549,496

2,142,754

1,919,218

795,559

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

Operating income...............................................................
Other income (expenses):
Interest and dividend income............................................
Equity in earnings (losses) of affiliates...............................
Income before income taxes..........................................
Income taxes: *NOTE 8
Current.................................................................................

1,824,205

18,441

19,550179,178

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

(115)

664

197,090

139,403

1,914,987

67,21240,405653,058

Primary................................................................................
Fully diluted.........................................................................
Cash dividends per share ..................................................

48,377676,258

127,489

91,0261,238,728

191.60191.5724.00

194,381

10,636¥80,389$ 1,044,346

US dollars¥

143.31131.6718.00

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

34 SUZUKI MOTOR CORPORATION

23,20069,600¥ 107,484¥(27,437)

7,971

Yen

Net income per share:(1,119)(19,864)

20,005

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

(59,839)(5,510)2,387

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

5,905,681

514,534
144,564(2,823)

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

7,729,886

187,747(6,158)Interest expense.................................................................

20,819,610

659,098

607,812Selling, general and administrative expenses ................

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

Thousands of
US dollars

Millions of yen

$

1.86

1.86

0.23

Consolidated Financial Statements(Consolidated Statements of Comprehensive Income)Years ended March 31, 2014 and 2013

Thousands of
US dollars

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2014

2013

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

¥127,489¥91,026$1,238,728

47,59629,494462,459

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

(1,196)

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

27,555

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

7,504

Change in equity.................................................................

—

1,884

2014

(11,626)

51,812

267,739

3,672

72,915

6,595—

Total other comprehensive income *NOTE 12.........................

81,45993,459791,488

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

208,949

184,485

2,030,216

187,105

168,188

1,817,966

Comprehensive income attributable to:Comprehensive income attributable to owners of the parent
Comprehensive income attributable to minority interests

21,844

16,297212,250

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

SUZUKI MOTOR CORPORATION 35

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Years ended March 31, 2014 and 2013

Millions of yen

SUZUKI MOTORCORPORATIONAND CONSOLIDATEDSUBSIDIARIES
Balance as ofMarch 31, 2012
Dividends from surplus...

Thousandsof sharesof commonstock

Capitalstock

CapitalsurplusRetainedearnings

561,047¥138,014¥144,364¥834,296———(8,976)

Total othercomprehensive income

Subscription
rights toshares¥(81) ¥(128,845)¥—¥124,009——

Treasury
stock

—

—

Minority
interests

Change in equity.........

—

—

—

6,595

—

—

—

—

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

—

—

—

80,389————Purchase of treasury
stock............................

—

—

—

—

(5)

—

—

—

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

—

—

—

—

—

81,20384

27,504561,047¥138,014¥144,364¥912,304¥(86)¥(47,642)¥84¥151,513

Dividends from surplus...

—

—

—

(11,220)

—

—

—

—

Balance as ofMarch 31, 2013
Net income..................

—

—

—

107,484

—

—

—

—

Purchase of treasury
stock............................

—

—

—

—

(5)

—

—

—

Disposal of treasury
stock............................

—

—

(13)

—

35

—

—

—

Transfer of loss on disposal of treasury stock

—

—

13

(13)

—

—

—

—

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

—

—

—

—

—

83,48883

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

Total othercomprehensive income

Subscription
rights tosharesBalance as ofMarch 31, 2014

Thousands of US dollars
Thousandsof sharesof commonstock

Balance as ofMarch 31, 2013

Capitalstock

CapitalsurplusRetainedearnings

561,047 $1,340,990 $1,402,689

Treasurystock$8,864,214$(843)$(462,908)

Minority
interests$825 $1,472,150

Dividends from surplus...

—

—

—

(109,022)

—

—

—

—

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

—

—

—

1,044,346

—

—

—

—

Purchase of treasury
stock............................

—

—

—

—

(54)

—

—

—

Disposal of treasury
stock............................

—

—

(128)

—

341

—

—

—

Transfer of loss on disposal of treasury stock

—

—

128

(128)

—

—

—

—

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

—

—

—

—

—

811,201

815

154,984

561,047 $1,340,990 $1,402,689$9,799,411$(557)$348,292

Balance as ofMarch 31, 2014

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

36 SUZUKI MOTOR CORPORATION$1,641 $1,627,134

Consolidated Financial Statements

Consolidated Statements of Cash Flows
Years ended March 31, 2014 and 2013

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIESCash flows from operating activities
Income before income taxes..............................................
Depreciation and amortization...........................................
Impairment loss..................................................................
Increase (decrease) in provision for loss on liquidation ofsubsidiaries and affiliates...................................................
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 valuation of securities................................
Loss (gain) on sales of investment securities....................
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.............................................................................
SubtotalInterest 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....................
Proceeds from sales of property, plant and equipment....
Purchases of investment securities...................................
Proceeds from sales of investment securities...................
Payments of loans receivable............................................
Collection of loans receivable............................................
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............................
Redemption of bonds.........................................................
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
Cash and cash equivalents at end of period *NOTE 10

Thousands of
US dollars

Millions of yen

2014

2013

2014

¥197,090
117,188
1,029¥139,403
93,680458$1,914,987
1,138,639
10,000(5,521)(699)(18,441)
6,158
6,718
115
44
(17)
(290)
(49,559)(10)
72,664
12,68012,621
351,772
18,999(5,646)(42,209)
322,9155,521
44(19,550)
5,510
670
(664)
3,849
—
200
10,247(3,029)(8,142)
11,608(30,049)
209,759
19,466(5,211)(33,957)
190,057(53,648)(6,798)(179,178)
59,83965,278
1,119
428
(167)
(2,823)(481,530)(101)
706,030
123,207
122,633
3,417,917
184,601(54,861)(410,119)
3,137,537(77,477)
38,842(209,912)
165,156(204,739)
4,421(2,712)623(1,086)555(230)(286,559)(32,908)
41,603(113,726)
64,127(163,929)
3,505(4,002)—(436)
673(5,465)(210,559)(752,797)
377,409(2,039,567)
1,604,705(1,989,302)
42,956(26,356)
6,059(10,556)
5,392(2,235)(2,784,292)

24,691
30,000(38,488)—(5)(11,219)(2,133)(35)
2,809
10,34249,508661,102¥710,611(8,603)
190,482(54,708)(149,975)(5)(8,975)(1,814)(32)(33,632)
4,706(49,427)
710,530¥661,102239,907291,488(373,966)—(54)(109,012)(20,727)(340)
27,295
100,495
481,035
6,423,463$6,904,498

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

SUZUKI MOTOR CORPORATION 37

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 Affilites (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 yenamounts on the basis of 102.92 to US$1, the rate of exchange prevailing as of March 31, 2014. Consequently, the totals shown in 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 March 31, 2014 and 2013, include the accounts of The Group. And
the numbers of consolidated subsidiaries are 133 and 135 respectively. All significant inter-company accounts and transactions are eliminated in consolidation. Investments in affiliated companies are accounted for by the equity method.
The difference at the time of acquisition between the cost and underlying net equity of investments in consolidated subsidiaries (goodwill) and in affiliated companies accounted for under the equity method is, as a rule, amortized on a straight-line
basis over a period of five years after appropriate adjustments.
The account settlement date of 28 consolidated subsidiaries is December 31, but Magyar Suzuki Corporation Ltd. and 4 others are consolidated based on the financial statements of provisional account settlement as of March 31. Other 23 subsidiaries are consolidated with the financial statements based on their respective account settlement date.
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 loss on liquidation of subsidiaries and affiliates
Reasonably estimated amount is appropriated for anticipated loss caused by liquidation and restructuring of businesses operated by subsidiaries and affiliates.
(g) 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 abolishedat the closure of the Ordinary General Meeting of Shareholders held on 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.

38 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements(h) 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.
(i) 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.
(j) 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.
(k) 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.
(l) Hedge accounting
Gains or losses arising from changes in fair value of the derivatives designated as “hedging instruments” are deferred
until the gains 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
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
denominated transaction 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 arelimited 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.
(m) Foreign currency translation
All monetary assets and liabilities denominated in foreign currencies, whether long-term or short-term are translated into Japanese yenat 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 thebalance sheet date.
The components of net assets are translated into Japanese yen at their historical rates. Profit and loss accounts for the fiscal year aretranslated into Japanese yen using the average exchange rate during the fiscal year. Differences in yen amounts arising from the use ofdifferent rates are presented as “foreign currency translation adjustments” and “minority interests” in the net assets.
(n) 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).

SUZUKI MOTOR CORPORATION 39

Consolidated Financial Statements(o) 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:
3 to 75 years
Buildings and structures		
Machinery, equipment and vehicles 3 to 15 years
b. Intangible assets (excluding lease assets)	����������������� Straight-line method
c. Lease assets
Finance lease which 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.
(p) 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 year
ended March 31, 2012.
(q) Retirement benefits
With regard to calculation of retirement benefit obligations, straight-line basis method was used to attribute expected benefit toperiod up to the end of this fiscal year. With regard to past service costs, they are treated as expense on a straight-line basis
over the certain years within the period of average length of employees’ remaining service years at the time when it occurs.
As for the actuarial gain or loss, the amounts, prorated on a straight-line basis over the certain years within the period of average length of employees’ remaining service years in each year in which the differences occur, are respectively treated as
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.
(r) 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.
(s) Cash and cash equivalents
All highly liquid investments with original maturities of three months or less when purchased are considered cash equivalents.
(t) Reclassification
Certain reclassifications of previously reported amounts are made to conform to current classifications.

40 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

NOTE 3: Changes in accounting principles and accounting estimates(a) Application of accounting standard for retirement benefits
Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan (ASBJ) Statement No.26 of 17 May 2012)
and Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No.25 of 17 May 2012) has been applied
since the end of this fiscal year. (Except body text stipulated in article 35 of the Accounting Standard for Retirement Benefits
and article 67 of Guidance on Accounting Standard for Retirement Benefits) Pension assets are deducted from retirement
benefit obligation and the net amount is recognized as liability for retirement benefits, and previously unrecognized actuarial
gains or losses and past service costs are recognized as liabilities for retirement benefits.
In accordance with transitional accounting as stipulated in article 37 of the Accounting Standard for Retirement Benefits, theeffect of the change in accounting policies arising from initial application is recognized in accumulated adjustments for retirement benefit within the accumulated other comprehensive income.
As a result, ¥15,862 million of assets for retirement benefits and ¥36,918 million of liabilities for retirement benefits were recognized,
and Accumulated Other Comprehensive Income increased by ¥3,867 million, and minority interests decreased by ¥6 million.

(b) New accounting standards not yet applied
Accounting Standard for Retirement Benefits (Accounting Standards Board of Japan (ASBJ) Statement No.26 of 17 May 2012)
and Guidance on Accounting Standard for Retirement Benefits (ASBJ Guidance No.25 of 17 May 2012)
a. Overview
The accounting methods for unrecognized actuarial gains or losses and past service costs as well as the calculation
method for retirement benefit obligations and service costs and the enhancement of disclosure have been revised.
b. Application date
The revision of the calculation method for retirement benefit obligations and service costs will be applied from the beginningof the consolidated fiscal year on or after April 1, 2014. Since transitional handling has been specified in mentioned above accounting standard, the standard will not be applied retrospectively to the consolidated financial statements of prior periods.
c. Effect of applying accounting standard
The effect on the consolidated financial statements is being reviewed as of March 31, 2014.

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 exchangerate 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.
Most of accounts payable-trade are 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 for the interest rate risks of some long-term borrowings to fix interest expenses. Also, The Group uses
cross currency interest rate swaps for fluctuation of exchange rate in repayment of principle and interest rate risk to fix cash flow.
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 and interest rate
related to borrowings. The Group executes and manages derivatives within the actual demand in line with our rules and regulations which set out the authority to trade. In addition, in using derivatives, The Group deals with financial institutions whichhave high credit grade in order to reduce credit risks. With respect to hedge accounting, also please see Note 2 (l).
In addition, each of The Group company 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 41

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 March 31, 2014 and 2013 were as follows. Financial instruments whose fair value cannot be reliably determined are not included in the below table.
Millions of yen

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¥358,851
310,694

2014

2013
—
527

Carrying
amount¥279,009
253,237

Fair value

Difference¥358,851
311,221¥¥279,009
253,225¥—(12)

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

—
(261)
265
—
—
(31)
—
1,291
1,260

738,687513
1,271,448
350,472
171,790
35,299155,519
220,392
933,474

738,687357
1,271,279
350,472
171,79035,313
155,519
218,067
931,164

—
(155)
(168)
—
—
(14)
—
2,324
2,310

51
1,160

51
1,160

—
—

2,596
(1,845)2,596(1,845)——2014

Carrying
amount$3,486,699
3,018,792$3,486,699
3,023,913

8,390,152
4,989
14,900,634
4,215,115
1,918,122
376,487
1,664,151
2,032,319
10,206,195

8,390,152
2,448
14,903,215
4,215,115
1,918,122
376,791
1,664,151
2,019,765
10,193,946—(2,541)
2,580
—
—
(304)
—
12,553
12,249504
11,280504
11,280——Fair value

Difference
$

—
5,121

(*): Assets or liabilities derived from derivatives are shown on a net basis and net liabilities are shown as ( ).

42 SUZUKI MOTOR CORPORATION

Difference

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

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 March 31, 2014 and 2013
Thousands of
US dollars

Millions of yen

Available-for-sale securities
Unlisted stock other than stocks of affiliates
Unlisted stock of affiliates..............................
Others.............................................................

2014

2013

2014

¥18,747¥18,876¥182,151

17,077557

16,5691,295

165,928

5,416

Those 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 43

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

Within1 yearCash and deposits
Notes andaccounts receivables- trade
Securities and investment
securities with maturities
Total¥ 358,851

2013

Over 1 year,
Within5 years¥—

Over 5 years,
Within
10 years¥ —¥ 279,009¥

Over 5 years,
Within
10 years—¥ —60,831

526

203,859

48,822555

612,489¥1,220,677—¥60,831—¥526

559,609¥1,042,478—¥48,822—¥555

Thousands of US dollars
Over 1 year,
Within5 years

Over 5 years,
Within
10 years

2,422,623

519,052

5,116

5,951,125$11,860,449—$519,052—$5,116

Within1 year

44 SUZUKI MOTOR CORPORATIONOver 1 year,
Within5 years

249,336

2014

Cash and deposits
Notes andaccounts receivables- trade
Securities and i nvestment
securities with maturities
Total

Within1 year

$ 3,486,699

$

—

$

—

Consolidated Financial Statements(c) Securities
a. Available-for-sale securities with market value as of March 31, 2014 and 2013
Millions of yen

2014
Acquisition
cost

2013

Carrying
AmountDifference

Acquisition
cost

Carrying
AmountDifference¥176,008¥ 89,124

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

¥ 91,865¥250,014¥ 158,148¥ 86,883———

175,441

181,767

6,325

144,648

147,424

2,776¥231,531¥323,432¥ 91,901

¥

¥

¥

—

Bonds.....................................................
Others.....................................................

¥267,307

Sub-Total—¥431,782—¥ 164,474

Securities for which the carrying amount does not exceed the acquisition costs¥

Stocks.....................................................
Bonds.....................................................

1,928

5,000

425,164

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

¥432,093

Sub-Total¥699,401

Total

¥

1,567

5,000

425,164¥431,732¥863,514

¥

(361)

5,158

—

—

¥

(361)

¥164,113

4,356

(801)

—

—

—

410,898

410,898—¥416,056¥415,255¥¥647,588¥738,687¥91,099(801)

Thousands of US dollars

2014
Acquisition
cost

Carrying
AmountDifference

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

$ 892,593—

Bonds.....................................................
Others.....................................................
Sub-Total

1,704,643$2,597,237$2,429,211—

1,766,106$4,195,318$1,536,618—

61,462$1,598,080

Securities for which the carrying amount does not exceed the acquisition costs
Stocks.....................................................
Bonds.....................................................
Others.....................................................
Sub-Total
Total$

18,73948,581

4,131,021$4,198,342$

15,231

48,581

4,131,021$4,194,834$ 6,795,579 $ 8,390,152$(3,507)$(3,507)——$1,594,573

b. Available-for-sale securities sold during 2014 and 2013
Thousands of
US dollars

Millions of yen

2014
Amounts sold......................................................................
Gains on sales of available-for-sale securities..................
Loss on sales of available-for-sale securities ...................

2014

2013

¥165,779

17
0¥64,127——$1,610,764

167
0SUZUKI MOTOR CORPORATION 45

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 March 31, 2014 and 2013
Millions of yen

Currency related transactions (non-market transactions)Type
Foreign currency
forward contracts
Selling
USD
Buying
USD
JPY
Total

2014

Contract/
notional
amountAmountdue after
one year¥ ——17,687
11,405¥29,093

—
—
—

2013

Fair value

¥

—

Gain
(loss)

Contract/
notional
amountAmountdue after
one year¥—¥ 2,323

—

¥

(142)
(262)
¥(404)

17,35638,808¥58,488———(6)(2,772)¥(2,705)

(142)
(262)
¥(404)

Fair value

73

Gain
(loss)¥

73(6)(2,772)¥(2,705)

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

2014

Contract/
notional
amountAmountdue after
one year

Fair value

Gain(loss)$171,861
110,819$282,681———$(1,384)(2,547)$(3,932)$(1,384)(2,547)$(3,932)

Cross currency interest rate swap transactions (non-market transactions)Type
Pay fixed
receive floating
Pay PHP
receive USD
Pay floatingreceive floating
Pay INR
receive USD
Total

Contract/
notional
amount2014
Amountdue after
Fair value
one year¥1,200¥7,153¥8,353

4,769¥4,769

¥

—

84

1,536
¥1,620Gain(loss)

Contract/
notional
amount

¥

¥

84

1,536
¥1,620Thousands of US dollars
Type
Pay fixed
receive floating
Pay PHP
receive USD
Pay floatingreceive floating
Pay INR
receive USD
Total
46 SUZUKI MOTOR CORPORATION

2014

Contract/
notional
amountAmountdue after
one year$11,659$

69,510$81,169

46,340$46,340—

Fair value$

822

14,927$15,750

Millions of yen

Gain(loss)$

822

14,927$15,750—

6,537¥6,5372013
Amountdue after
Fair value
one year¥Gain(loss)

—

¥ —

¥ —

6,537
¥6,537

762
¥762

762
¥762

Consolidated Financial Statements

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

Millions of yen

2014

2013

Contract/
notional
amountAmountdue after
one year

Fair value¥4,545¥4,545

—
—

¥(55)
¥(55)

Gain
(loss)

¥(55)
¥(55)

Contract/
notional
amountAmountdue after
one year

Fair value¥7,592¥7,592

—
—

¥97
¥97

Gain
(loss)¥97¥97

Thousands of US dollars
Type

Contract/
notional
amount2014

Amountdue after
one year

Fair value

Gain(loss)

Commodity
Futures contract$44,164$(537)$(537)
Buying—Total$44,164—$(537)$(537)
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.
b. Derivative transactions to which hedge accounting is applied as of March 31, 2014 and 2013
Currency related transactions
Principle hedged item: Account receivable-trade, account payable-trade and long-term debt

Millions of yen

2013
2014
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
USD¥22,369—¥ 3,847—¥ (35)
EUR
18,902
—
1,367
—
(7)
CAD
1,583
—
80
—
0
AUD
2,941
—
3,265
—
(95)
NZD
515
—
1,256
—
(40)
GBP
522
—
221
—
(1)
MXN
832
—
827
—
(6)
Buying
USD
1,498
—
70
—
2
EUR
2,304
—
7,225
—
(3)
JPY
7,200
—
—
—
—
Currency option transactions (Principle hedge accounting)
Buying
JPY
2,578
—
—
—
—
Foreign currency forward contracts (Exceptional hedge accounting)Selling
USD
5,654
—
616
—
*
EUR
6,831
—
8,947
—
*
CAD
1,279
—
15
—
*
AUD
3,455
—
2,039
—
*
NZD
563
—
350
—
*
GBP
1,173
—
301
—
*
MXN
1,149
—
691
—
*
CNY
295
—
56
—
*
Buying
USD
383
—
—
—
*
EUR
477
—
679
—
*
JPY
412
—
—
—
*
Total
¥82,925—¥31,862—¥(188)Type

Fair value

¥

745
(130)
(30)
(151)
(14)
(49)
(25)

(46)
(19)
(1,158)

(356)

*
*
*
*
*
*
*
*
*
*
*
¥(1,237)SUZUKI MOTOR CORPORATION 47

Consolidated Financial Statements

Thousands of US dollars
2014
Type
Contract/
Amount due
Fair value
notional amount after one year
Foreign currency forward contracts (Principal hedge accounting)Selling
USD$ 37,378—$ (348)EUR
13,285
—
(75)
CAD
786
—
4
AUD
31,732—(927)
NZD
12,207
—
(396)
GBP
2,152
—
(10)
MXN
8,043
—
(63)
Buying
USD
689
—
27
EUR
70,203—(37)
Foreign currency forward contracts (Exceptional hedge accounting)Selling
USD
5,985
—
*
EUR
86,940
—
*
CAD
154
—
*
AUD
19,817
—
*
NZD
3,406
—
*
GBP
2,932
—
*
MXN
6,722
—
*
CNY
545
—
*
Buying
EUR
6,604
—
*
Total
$309,588—$(1,827)* Because these foreign currency forward contracts are handled together with hedged items, their fair values are included in that of hedged items.

48 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

Cross currency interest rate swap transactions
Principal hedged item: long-term debt
2014
Type
Contract/
Amount due
notional amount after one year
Principle hedge accounting
Pay fixed
receive floating
Pay JPY
receive USD¥121,243¥121,243
Pay fixed
receive floating
Pay IDR
receive USD
3,782
2,319
Pay fixed
receive floating
Pay THB
receive USD
12,94012,940Total¥137,965¥136,502

Millions of yen
2013
Contract/
Amount due
notional amount after one year

Fair value

Fair value¥ (73)¥121,000¥121,000¥3,910

2

1,896

675

(35)

311
¥240

—
¥122,896—¥121,675—¥3,875

Thousands of US dollars
2014
Type
Contract/
Amount due
notional amount after one year
Principle hedge accounting
Pay fixed
receive floating$1,178,031$1,178,031
Pay JPY
receive USD
Pay fixed
receive floating
36,753
22,535
Pay IDR
receive USD
Pay fixed
receive floating
125,730
125,730
Pay THB
receive USD
Total$1,340,515$1,326,298

Fair value$ (718)26

3,024$2,332

Commodity transactions
Principal hedged item: raw materials and supplies
2013
2014
Contract/
Amount due
Contract/
Amount due
Fair value
notional amount after one year
notional amount after one year
Commodity futures contract (Principle hedge accounting)
Buying
¥536
—
¥—
—
¥—
Total
¥536
—
¥—
—
¥—
Type

Millions of yen
Fair value
¥(41)
¥(41)

SUZUKI MOTOR CORPORATION 49

Consolidated Financial Statements

NOTE 5: Short-term borrowings and long-term debt

Short-term borrowings as of March 31, 2014 and 2013 were as follows. The annual interest rates of short-term borrowings as of March 31, 2014
were from 0.24 percent to 12.25 percent.
Thousands of
US dollars

Millions of yen

2014

2014

2013

Short-term loans payable and current portion of Long-termloans payable
Secured...............................................................................
Unsecured..........................................................................

¥

—

¥

236,161—
207,090

46

Lease obligations due within one year..................................

¥236,207$—

2,294,609452

27¥207,118$2,295,061

Long-term debt as of March 31, 2014 and 2013 were as follows:
Thousands of
US dollars

Millions of yen

2014

2013

¥

¥

2014

Long-term loans payable maturing through 2019
Secured...............................................................................
Unsecured..........................................................................
Lease obligations due more than one year...........................
Other interest-bearing debts (Long-term guarantee deposited)236

208,93072

13,655¥222,894

307

220,084
21
12,716¥233,130$2,293

2,030,025

702

132,683$2,165,705

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.

50 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

The aggregate annual maturities of long-term debt, excluding other interest-bearing debt, outstanding as of March 31, 2014 were as follows:Year ending March 31
2016........................................................................................
2017........................................................................................
2018........................................................................................

Millions of yen

Thousands of
US dollars¥ 95,383$ 926,775

77,475752,777

36,375353,4313

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

0

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

33

2¥209,238$2,033,021

Millions of yen

Thousands of
US dollars¥ 793$ 7,712¥1,113$10,820

Millions of yen

Thousands of
US dollars¥236$2,293¥765$7,438Assets pledged as collateral as of March 31, 2014:

Property, plant and equipment..............................................
Other intangible assets..........................................................

319

3,107

Secured liabilities as of March 31, 2014:

Long-term loans payable.......................................................
Others (noncurrent liabilities).................................................

529

5,144

NOTE 6: Loan commitment

The Company has the commitment line contract with five banks for effective financing. The outstanding balance of this contract as ofMarch 31, 2014 and 2013 were as follows:
Thousands of
US dollars

Millions of yen

2014Commitment line contract total..............................................
Actual loan balance................................................................
Variance

2014

2013

¥200,000—¥200,000¥200,000—¥200,000$1,943,256—$1,943,256

SUZUKI MOTOR CORPORATION 51

Consolidated Financial Statements

NOTE 7: Retirement and severance benefit(Year ended March 31, 2013)(a) 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.
(b) Component of retirement benefit obligation as of March 31, 2013
a. Retirement benefit obligation

Millions of yen¥(108,739)
83,842b. Pension assets¥ (24,897)

c. Unfunded retirement benefit obligation (a+b)(810)

d. Unrecognized difference by an actuarial calculation(4,063)e. Unrecognized past service cost (decrease of liabilities)(29,771)

f. Net amount in consolidated balance sheet (c+d+e)8,131g Prepaid pension cost

¥ (37,903)

h. Provision for retirement benefits (f-g)

Remarks: 1) The premium retirement allowance paid on a temporary basis is not included.
2) Some of subsidiaries adopt simplified methods for the calculation of retirement benefits.
(c) Component of retirement benefit cost for year ended March 31, 2013

Millions of yen¥5,214a. Service cost

2,101

b. Interest cost(699)

c. Assumed return on investment

1,497

d. Amortized amount of actuarial difference(734)

e. Amortized amount of past service cost

¥7,379f. Retirement benefit cost (a+b+c+d+e)

Remarks: “a. Service cost” includes retirement benefits cost of some of subsidiaries caluculated by simplified methods.
(d) Items related to the calculation standard for the retirement benefit obligationa. Allocation method of the estimatedamount of retirement benefits: Straight-line basis

b. Discount rate

: Mainly 2.00%

c. Reassessment rate

: 1.50%d. Assumed return of investment ratio: Mainly 0.77%

e. Number of years for amortization: Mainly 15 yearsof past service cost		 To be amortized by straight-line method with		 certain term within the employees’ average remaining
		 service years at the time when the difference was caused.
f. Number of years for amortization: Mainly 15 yearsof actuarial difference		 To be amortized from the next fiscal year
		 by straight-line method with certain term within the		 employees’ average remaining service years at the time			 when the difference was caused.

52 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements(Year ended March 31, 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 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
Service cost
Interest cost
Actuarial differences arised in current fiscal year
Retirement allowance paid
Past service cost arised in current fiscal year
OthersClosing balance of retirement benefit obligation

Thousands of
US dollars¥108,739$1,056,548

2,199

21,373

6,024
(611)

58,538(5,940)(4,940)(48,003)(475)(4,623)

159¥111,096

1,551$1,079,445(b) Reconciliation of pension assets from the opening balance to the closing balance
Millions of yen

Opening balance of pension assets
Expected return on pension assets
Actuarial differences arised in current fiscal year
Contribution from employers
Retirement allowance paid
OthersClosing balance of pension assets

Thousands of
US dollars¥83,842$814,639

808

7,851

825

8,028

8,022

78,002(3,512)(34,127)¥90,040$874,85648468(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
Plan asset

Thousands of
US dollars¥82,668$803,232(7,371)(71,623)(90,040)(874,856)

Defined benefit obligation of unfunded severance plan

28,427276,212

Net amount of liability and asset for retirement benefits
recognized in consolidated balance sheet¥21,056$204,589

Liability for retirement benefits¥36,918(15,862)$358,712

Asset for retirement benefits
Net amount of liability and asset for retirement benefits
recognized in consolidated balance sheet¥21,056$204,589(154,123)SUZUKI MOTOR CORPORATION 53

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

Service cost

¥6,024$58,538(825)(8,022)

2,199

Interest cost
Expected return on plan assets

527

Recognition of actuarial gain and losses(636)

Amortization of past service cost

21,373
5,122(6,182)(656)(6,382)¥6,633$64,448

OthersTotal amount of retirement benefit expenses for defined
benefit plans

Thousands of
US dollars(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$31,837¥6,018$58,480

Unrecognized actuarial gain and losses
Total

Thousands of
US dollars

2,742

26,642(f) Plan assets
a. Major breakdown of pension assets
Portion of major components to total pension assets were as follows:
Debt securities
General account of life insurance companies
Others
Total

51.1%
38.0%
10.9%

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
Discount rate
Expected long-term return on pension assets

2.00%
0.82%

3. Defined contribution plan
Contribution to defined contribution plan by The Company and consolidated subsidiaries is 216 million yen(2,104 thousand US dollars).

54 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

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

Deferred tax assets
Excess-depreciation and Impairment loss........................
Various reserves..................................................................
Unrealized profits elimination.............................................
Loss on valuation of securities...........................................
Deferred assets and others................................................
Others..................................................................................

2014

2013

2014

¥ 59,105¥ 68,083$ 574,283

39,54820,876

202,839

18,725

12,254

12,64882,757

76,845

3,367

384,268

41,433

119,071

32,7233,154

804,095

217,910

220,892¥162,980¥172,708$1,583,567

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

¥(56,219)¥ (30,468)$(546,247)

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

(5,243)(5,167)(50,948)

Gross deferred tax assets total........................................
Valuation allowance............................................................
Deferred tax assets total..................................................
Deferred tax liabilities

Reserve for advanced depreciation of noncurrent assets....
Others..................................................................................
Deferred tax liabilities total...............................................
Net amounts of deferred tax assets...................................

(54,930)(3,603)(48,183)(533,715)(35,012)(3,555)(2,071)(4,140)¥ 95,841¥129,376(67,138)

2,117,283(43,332)(20,131)(652,340)$ 931,226

The differences between the statutory tax rate and the effective tax rate were summarized as follows:
2014
Statutory tax rate.....................................................................
Effect of change of tax rate................................................
Tax credit.............................................................................
Tax rate difference (consolidated overseas subsidiaries).
Others..................................................................................
Effective tax rate.....................................................................

2013

37.2%

37.2%

(3.3%)(5.9%)

0.3%

0.7%

3.1%

(2.0%)
35.3%

2.7%
—%
34.7%

SUZUKI MOTOR CORPORATION 55

Consolidated Financial Statements

NOTE 9: Research and development costs

Research and development costs included in selling, general and administrative expenses, for the years ended March 31, 2014 and2013 were as follows:
Thousands of
US dollars

Millions of yen

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

2014

2013

2014

¥127,090¥119,269$1,234,843

NOTE 10: Cash and cash equivalents

Cash and cash equivalents as of March 31, 2014 and 2013 were as follows:
Thousands of
US dollars

Millions of yen

Cash and deposits.............................................................
Short-term investment securities........................................
Time deposits with maturities of over three months..........
Bonds etc. with redemption period of over three months.

2014

2013

2014

¥358,851¥279,009$3,486,699

612,489

559,609(187,359)(142,670)(73,370)¥710,611

NOTE 11: Net assets(34,845)¥661,102

5,951,125(712,886)(1,820,440)$6,904,498

The Companies Act of Japan requires that at least 50% of the contribution of new shares be included in capital stock. The portion to berecorded as capital stock is determined by resolution of the meeting of the Board of Directors. Proceeds in excess 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 capital surplus orlegal 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 consolidated balance sheet
and are not shown separately.
According to the Companies Act, the articles of incorporation allow to repurchase treasury stock and dispose of such treasury stock byresolution of meeting of the Board of Directors.

56 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

NOTE 12: Other comprehensive income

Other comprehensive income in the current consolidated fiscal year comprised were as follows:
Thousands of
US dollars

Millions of yen

2014

2013

2014

¥73,280¥48,141$ 712,011

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

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

712,404

44,835(25,724)Tax effect.............................................................................

392(3,305)73,320

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

(15,340)(249,944)¥47,596¥29,494$ 462,459¥ (4,119)¥ 3,126$ (40,024)

Deferred gains or losses on hedges
Unrealized loss (gain) arising during the period...............
Reclassification adjustment of unrealized gain (loss)
through profit or loss...........................................................

1,785

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

(22,671)

3,573

1,136

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

17,353447(2,333)

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

11,044(1,689)¥ (1,196)¥ 1,884$ (11,626)¥27,748¥45,254$ 269,610

Foreign currency translation adjustment
Unrealized loss (gain) arising during the period...............
Reclassification adjustment of unrealized gain (loss)
through profit or loss...........................................................

(192)

Balance at the end of the period(1,871)

6,557¥27,555¥51,812$ 267,739¥ 7,504¥ 3,672$ 72,915¥¥ 6,595$

Share of other comprehensive income of associates
accounted for using equity method
Unrealized loss (gain) arising during the period
Change in equity
The amount arising during the period...............................

—¥81,459

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

NOTE 13: Cash dividends

Cash dividends per share$ 791,488

Resolution
Ordinary General
Meeting of Shareholders
held on June 27, 2013

Total amount of cash dividends¥93,459—

Meeting of theBoard of Directors
held on November 1, 2013

¥5,610 million$54,510 thousand¥5,610 million$54,511 thousand¥10.00$0.097¥10.00$0.097

Record date

March 31, 2013

September 30, 2013

Effective dateJune 28, 2013

November 29, 2013

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 June 27, 2014
Total amount of cash dividends
Cash dividends per share¥7,854 million$76,317 thousand¥14.00$0.136

Record date

March 31, 2014

Effective dateJune 30, 2014
SUZUKI MOTOR CORPORATION 57

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 June 28, 2012,
June 27, 2013 and June 27, 2014 based on The Company Act of Japan.
The details of the plan were as follows:
1. Resolution dateJune 28, 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
74,000 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 July 21, 2012 to July 20, 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 dateJune 27, 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 June 28, 2012
4. Number of shares
46,200 shares
5. Amount to be paid for subscription rights to shares
Same to the plan adopted at June 28, 2012.
6. Period during which subscription rights to shares can be exercised
From July 20, 2013 to July 19, 2043
7. Terms of exercise of subscription rights to shares
Same to the plan adopted at June 28, 2012
8. Matters relating to assignment of subscription rights to shares
Same to the plan adopted at June 28, 2012
9. Matters relating to subrogation payment
Same to the plan adopted at June 28, 2012

58 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

1. Resolution dateJune 27, 2014
2. Category and number of people to whom stock options are granted
7 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 June 28, 2012
4. Number of shares
37,700 shares
5. Amount to be paid for subscription rights to shares
Same to the plan adopted at June 28, 2012.
6. Period during which subscription rights to shares can be exercised
From July 23, 2014 to July 22, 2044
7. Terms of exercise of subscription rights to shares
Same to the plan adopted at June 28, 2012
8. Matters relating to assignment of subscription rights to shares
Same to the plan adopted at June 28, 2012
9. Matters relating to subrogation payment
Same to the plan adopted at June 28, 2012

NOTE 15: Contingent liabilities

As of March 31, 2014 and 2013, The Company and some of consolidated subsidiaries had the contingent liabilities as follows:
Thousands of
US dollars

Millions of yen

2014
Guarantee of indebtedness of affiliates and others..........

¥8,277—

Trade notes discounted......................................................

2014

2013

¥8,277¥8,15951¥8,210$80,427—$80,427

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 59

Consolidated Financial Statements

3. Information about the amounts of net sales, profit or loss, assets and other items by reportable segment (Years ended March 31)
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
42,668959,921

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

222,413

1,649,071

2,874,074

Millions of yen

2013

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¥——¥2,578,317
144,564¥230,290(11,946)¥2,297,814
150,613¥50,212
5,896

196,638

1,462,165

43,847784,983

2,487,635

5,910
392
27

86,866
1,466
431

903
89
—

—
—
—

93,6801,948
458

12,83535,215

197—

48,24815,683

152,701

903—

169,288

Thousands of US dollars

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....

60 SUZUKI MOTOR CORPORATION

Automobile$2,590,388 $25,414,540
1,020
1,742,091

Marine & Powerproducts, etc.

$ 544,567
81,092$

16,022,851

70,6201,059,312

8,705
983
2

—
—

149,004

391,335

221,993

1,842,251

15,638
8,747

Consolidated— $28,549,496—
1,824,205

2,161,031
4,407
1,251

414,575

Adjustment

9,326,868

27,925,327—

1,138,639

851—

541,191

11,346—2,075,592

21,02910,000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 March 31)
Millions of yen

2014
Japan

Europe

Asia

Other
areas

Eliminations

Consolidated¥150,296¥¥2,938,314

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

¥1,309,383
392,284

1,701,667

134,513¥360,465
16,000376,466

4,154¥1,118,169
57,185679

1,175,355(466,149)

150,975

59,419—(466,149)

241(10,582)—

2,938,314

187,747

Millions of yen

2013
Japan

Europe

Asia

Other
areas

Net sales to external customers....

¥1,203,474¥ 254,692¥ 951,713¥ 168,437

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

348,576

3,594

29,2981,552,050

258,287

102,516(1,062)Eliminations

Consolidated¥—¥2,578,317

660(382,129)—

981,012

169,097(382,129)

2,578,317

38,071

3,052

1,986

144,564

Eliminations

Consolidated

Net Sales:

Total
Operating income (loss)....................

Thousands of US dollars

2014
Japan

Europe

Other
areas

Asia

Net sales:
Net sales to external customers.... $12,722,338
Internal net sales or transfer
among geographical areas...........
Total
Operating income..............................

3,811,545

16,533,884

1,306,974$3,502,383 $10,864,455
155,467

3,657,850

40,361555,629

11,420,085

577,338$1,460,318 $
6,597

1,466,916

2,350— $28,549,496(4,529,239)—(102,819)

1,824,205(4,529,239) 28,549,496* “Other areas” consists principally of North America, Oceania and South America.

SUZUKI MOTOR CORPORATION 61

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

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

Japan

India

Others¥1,132,732¥708,316¥1,097,265

Consolidated¥2,938,314

Millions of yen

2013
Net sales........................................

Japan

India

Others¥1,040,948¥647,390¥889,977

Consolidated¥2,578,317

Thousands of US dollars

2014
Japan

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

62 SUZUKI MOTOR CORPORATION$11,005,950

India$6,882,207

OthersConsolidated$10,661,338$28,549,496

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 March 31, 2014, and the consolidated
statement of income, statement of comprehensive income, statement of changes in net assets and statementof 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 March 31,
2014, 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 U.S. 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
June 27, 2014

SUZUKI MOTOR CORPORATION 63

Company Outline
1. Company NameSUZUKI MOTOR CORPORATION

2. Date of Incorporation

March 1920
June 1954
October 1990

3. Head Office

300 Takatsuka-cho, Minami-ku, Hamamatsu-shi, Shizuoka 432-8611 Japan
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

March 31

6. Public Accounting Firm

Seimei Audit Corporation

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

7. Capital and Shareholders
Capital(as of March 31, 2014)¥138,014 million

Total number of authorized shares

1,500 million

Total number of shares issued

561,047,304

Number of shareholders

38,451

Stock Listing

Tokyo Stock Exchange

Securities Code7269

Ordinary General Meeting of Shareholders

June

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

Shareholders’ Register Manager

Sumitomo Mitsui Trsut Bank, Limited
4-1, Marunouchi 1-chome, 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)

22,8744.1

Tokio Marine & Nichido Fire Insurance Co., Ltd.

17,961

3.2

Japan Trustee Services Bank, Ltd. (Trust Account)

16,912

3.0

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

16,0002.9

The Shizuoka Bank, Ltd.

14,500

2.6

Resona Bank, Ltd.

13,0002.3

The Bank of New York - JASDEC Non-Treaty Account

10,8681.9

Sompo Japan 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 6,740 of treasury stocks.
*3. Shareholding ratio is calculated eliminating treasury stocks held by our Company.

64 SUZUKI MOTOR CORPORATION

Company Outline

Suzuki Group

Subsidiaries: 134 companies (71 in domestic, 63 in overseas)   Affiliates: 37 companies(1) Major Domestic Subsidiaries[Manufacturing Subsidiaries]
Suzuki Auto Parts Mfg. Co., Ltd.
Hamamatsu Pipe Co., Ltd.
Suzuki Akita Auto Parts Mfg. Co., Ltd.
Snic Co., Ltd.
Suzuki Toyama Auto Parts Mfg. Co., Ltd.
Suzuki Kasei Co., Ltd.

(2) Major Overseas Subsidiaries[Marketing Subsidiaries]

30 directly managed overseas marketing companies[EUROPE]
Germany
Spain
Italy
FranceHungaryUK
Austria
PolandSuzuki International Europe 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.

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

[Marketing Subsidiaries]

54 directly managed domestic marketing companies[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 65

MEMO

66 SUZUKI MOTOR CORPORATION

434 (215 + 4 + 215) x 280 mm

2014

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

ANNUAL REPORT 2014
Printed in Japan