434 (215 + 4 + 215) x 280 mm

2015

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

ANNUAL REPORT 2015
Printed in Japan

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
Corporate Governance Issues________________________________________________ 18
Risks in Operations_________________________________________________________ 26
The Status of the Corporate Group____________________________________________ 28
Financial Section___________________________________________________________ 30
Company Outline___________________________________________________________ 66

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 fiscal 2014 in overseas economy is showing a moderate recovery trend, despite influence by the trend of normalization of monetary policy in the US,
unpredictable economic outlook for emerging countries, downfall
in crude oil prices and geopolitical risk in some regions. Particularly
in India, it shows a steady recovery trend because of reformation by
the newly-elected government and low price of crude oil.
On the other hand, outlook for Japanese economy is unpredictable partly owing to the impact of the hike in the rate of consumption tax.
Under these circumstances, the consolidated net sales of this fiscal year (April 2014 to March 2015) increased by ¥77.2 billion (2.6%)
to ¥3,015.5 billion compared to the previous fiscal year. The Company was able to recover the net sales to ¥3.0 trillion, which had
declined after the financial crisis of 2008. The Japanese domestic
net sales decreased by ¥38.1 billion (3.4%) to ¥1,094.6 billion
year-on-year owing to the decrease in the automobile sales.
However, the overseas net sales increased by ¥115.3 billion (6.4%)
to ¥1,920.9 billion year-on-year mainly owing to the increase in
the automobile sales in India.
In terms of the consolidated income, the operating income decreased by ¥8.3 billion (4.4%) to ¥179.4 billion year-on-year.
Although the decrease in the income in Indonesia and Thailand
were covered by the increase in the income in India, the operating
income decreased mainly owing to the increase in the operating
expenses of Japan and overseas. The ordinary income decreasedby ¥3.5 billion (1.8%) to ¥194.3 billion year-on-year. The net income decreased by ¥10.6 billion (9.9%) to ¥96.9 billion year-onyear mainly owing to the increase in the adjustment of minority
interests in income.

Basic policies for profit distribution
The Group’s earnings heavily depend on the overseas production
sites located mainly at emerging countries and are susceptible
to the fluctuations of foreign currencies. Furthermore, the Groupplans to invest actively on such overseas sites going forward. Witha view for the Group to achieve a sustainable growth in the future,
it is indispensable to strengthen the Company’s structure and prepare for unexpected contingency.
The Company determines the profit distribution with the dividend
payout ratio of approximately 15% based on the performances,
strengthening of the corporate nature and full internal reservefor future business expansion and others from the medium tolong term viewpoint, with the emphasis on the continuous andstable distribution.
As to this fiscal year, although the income decreased year–onyear, with the consolidated dividend payout ratio, the year-end
dividends were up by ¥3.00 per share from the previous fiscal year
2 SUZUKI MOTOR CORPORATIONto ¥17.00 per share. As a result, the annual dividends including interim dividends were ¥27.00 per share and up by ¥3.00 per sharefrom the previous fiscal year.
In future years, under the foregoing point of view, we will also determine the profit distribution based on the performance of fiscal year.

Outstanding issues
The Group sets 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 of quality management system
The Group takes the quality management seriously as a management issue of utmost importance that needs to be addressed as
early as possible. The Group will review its quality management system fundamentally for the purpose of preventing the recurrence.
-Product development and strengthening of research and development
The Group will make effort to strengthen research and development such as environment technology, fuel efficient technology,
weight reduction technology, safety technology, information andcommunications technology and product designing ability toenhance competitiveness of products. Also, the Group will makeeffort to reduce costs by improving efficiency of development byintegrating engine, powertrain and platform, standardization ofparts and others.
-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.
-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.
-Reconstruction of motorcycle business
As for the Motorcycle business, the Group will review its omni-

A Message from the Management

directional business strategy and take aggressive steps such as
selecting and concentrating the region, product and technology,
strengthening its marketing capability, shortening its development
period, introducing its products in timely manner and challenging
to state-of-the-art technology and design, among others, thereby
offering value that exceeds customers’ expectations. By so doing,
The Group will be aiming at recovering its presence in the motorcycle market.
-Commitment to global environmental problem
Concerning the environmental issues, the Group has been offering
minivehicles in Japan and many types of compact vehicles thatare 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 the environmental issues.
In addition to enhancement of next generation environmental
technology in “Suzuki Green Technology”, the Group will continue
to tackle global environmental problem based on “Suzuki Environmental Plan 2015” and “Suzuki Biodiversity Protection Guideline”.
-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 isrelocating plants and facilities in Ryuyo region in Iwata City, Shizuoka Prefecture since massive tsunami damages are anticipatedin the region, to inland area of Hamamatsu City. Also, the Grouphas diversified its production of engine for minivehicle, which wasconcentrated 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 toenhance its preparedness against natural disasters.
The Group has been carrying out the motto "Develop products ofsuperior value by focusing on the customer" in the first paragraphof its mission statement. The Group will continuously strive for
manufacturing of really valuable products appreciated by customers.
With the slogan, "Small Cars for a Big Future", the Group commits
itself in promoting “production of small and subcompact vehicles” and “development of environmentally benign products”
needed by customers.
The Group makes efforts to be “Smaller, Fewer, Lighter, Shorter,and Cleaner” on every side and works 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 andwith sincerity.
We look forward to the continued support and encouragement of
our stockholders.

Representative Director and Chairman (CEO)Osamu Suzuki

Representative Director andVice Chairman

Yasuhito Harayama

Representative Director andExecutive Vice President

Osamu Honda

Representative Director andPresident (COO)

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 31 March, 2015 and 2014

Millions of yen(except per share amounts)

2015

2014

2015

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

¥3,015,461¥2,938,314$25,093,298

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

96,862

107,484

806,044

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

172.67

191.60

1.44

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

172.63191.57

1.44

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

27.00

24.00

0.22

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

1,701,390

1,494,357

14,158,199

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

2,008,729

1,790,832

16,715,730

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

3,252,800

2,874,074

27,068,326

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

134,377

117,188

1,118,228

Note:

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

Net Sales

Net Income

Net Income Per ShareYears ended 31 March(Millions of yen)

Years ended 31 March(Millions of yen)

Years ended 31 March(yen)
191.60107,484

172.6796,862

2,938,314

3,015,461
143.3180,3892,608,217

2,512,186 2,578,317

96.06

53,88780.65

45,1742011

2012

4 SUZUKI MOTOR CORPORATION

2013

2014

2015

2011

2012

2013

2014

2015

2011

2012

2013

2014

2015

Year in Review

Year in Review
n Production
Automobile Production

Japan

Overseas

Years ended 31 March(Thousand units)

1,884

2011

Total

994

2,878

2012

1,782

1,020

2013

1,834

1,044

2,878

2014

1,859

998

2,857

1,988

2015

2,802

1,055

Motorcycle Production

Overseas

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

2,550

2011

Japan

Total

185 2,735

2,400

2012

174 2,574

2,100

2013

3,043

169 2,269

2014

1,852

180

2015

1,645

154 1,799

2,033

n 2015 Net Sales
2015 Net Sales By Products

2015 Net Sales By Market(Year ended 31 March, 2015 Millions of yen)

(Year ended 31 March, 2015 Millions of yen)

Marine & Power
Products, etc.

Others268,325
8.9%

63,0332.1%

Motorcycle

Europe250,485
8.3%

372,028
12.3%

Automobile
2,701,942
89.6%

North
America
65,976
2.2%

Japan
1,094,611
36.3%

Asia
1,214,519
40.3%

SUZUKI MOTOR CORPORATION 5

Year in Review

Automobiles
Suzuki’s Worldwide Manufacturing and Sales
Total overseas automobile production for fiscal 2014 increased by 6.9% year-on-year to 1,988,000 units. Worldwide production, including
Japan, also increased by 6.5% year-on-year to 3,043,000 units.
Sales of automobiles in overseas market increased by 6.6% year-on-year to 2,111,000 units, while total global sales, including Japan, also
increased by 5.8% year-on-year to 2,867,000 units.

Operating Results by Segment
In the automobile business, the operating income decreased by ¥7.5 billion to ¥171.8 billion year-on-year mainly owing to the decrease in
the income in Japan, Indonesia, and Thailand, despite the increase in the income in India.

The Japanese Market
1. Overview of the Japanese Automobile Market
Total domestic automobile sales volume in fiscal 2014 declined by 7% year-on-year to 5,297,000 units. It fell year-on-year for the first timein four fiscal years because a consumption-tax hike in April 2014 dampened demand. Sales of registered vehicles fell by 9% year-on-year to
3,124,000 units. Sales of minivehicles fell by 4% year-on-year to 2,173,000 units. Still, sales of minivehicles exceeded 2,000,000 units for thesecond fiscal year in a row. Minivehicles accounted for 41% of overall automobile sales. The proportion exceeded 40% for the first time.

2. Suzuki Sales
Suzuki’s domestic automobile sales in fiscal 2014 grew year-on-year in volume terms for the
fourth fiscal year in a row. They rose by 4% year-on-year to a record-high 756,000 units.
Suzuki’s sales of minivehicles grew by 5% year-on-year to a record-high 679,000 units.
The key driver of that growth was steady demand for the Hustler. Suzuki’s salesof registered vehicles fell year-on-year for the second fiscal year in a row. They
declined by 6% year-on-year to 76,000 units.

3. Suzuki Topics in Fiscal 2014
• In August 2014, Suzuki enhanced the WagonR by launching versions
equipped with a newly developed fuel-saving system called S-ENE
CHARGE. The WagonR versions equipped with S-ENE CHARGE have thebest fuel economy of any miniwagon*1 (a minicar with an overall height of at least 1,550mm) in Japan.

Alto• The Hustler mini-crossover won acclaim for creating a new genre. It won numerous awards including 2014–2015 Japan Automobile Hall of
Fame Car of the Year and 2015 RJC Car of the Year.
• In December 2014, Suzuki launched a comprehensively enhanced version of the Alto minicar. The new Alto has a simple, stylish exterior
design. Also, lower weight and higher powertrain efficiency give it the best fuel economy of any gasoline-engine vehicle in Japan*2. In March
2015, Suzuki expanded the Alto range by adding the sporty Alto Turbo RS.
• In February 2015, Suzuki launched the first comprehensively enhanced versions of the Every (a one-box commercial
minivan) and Every Wagon (a one-box mini passenger vehicle) in nine and a half years. The
new versions offer even greater roominess, fuel efficiency, and user-friendliness.
• In February 2015, Suzuki launched the SX4 S-CROSS compact crossover. The
Company is having the SX4 S-CROSS built by its Hungarian subsidiary, Magyar
Suzuki, and is importing it into Japan.
*1 Suzuki measured the fuel economy of the S-ENE CHARGE-equipped WagonR in the JC08
test cycle and had it verified by Japan’s Ministry of Land, Infrastructure, Transport andTourism. Suzuki’s claim to the best fuel economy of any miniwagon in Japan is based on
the Company’s research in August 2014.
*2 Suzuki measured the fuel economy of the new Alto in the JC08 test cycle. Suzuki’s claim
to the best fuel economy of any gasoline-engine vehicle in Japan is based on the Company’s research in December 2014 and excludes hybrids.

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 grew in fiscal 2014 by 4% year-on-year to 2,601,000 units. One reason for this growth was evidence of a moderate economic pickup following the change of government in May 2014. Sales in the five key
ASEAN countries (Indonesia, Thailand, Vietnam, the Philippines, and Malaysia) fell by 8% year-on-year to 3,088,000 units. The drop was particularly marked in Indonesia and Thailand. Sales fell in Indonesia because of an economic slump and a weak rupiah. Sales fell in Thailand
because the previous government’s policies had left households with greater debt and because less financing was available for purchases.
Sales in Europe (the European Union and the European Free Trade Association) grew by 8% year-on-year owing to an economic recovery
that began the previous fiscal year. Sales in China grew by 5% year-on-year to 23,702,000 units.

2. Suzuki Sales
Suzuki’s overseas automobile sales volume in fiscal 2014 grew by 7% year-on-year to 2,111,000 units as economic conditions in the Company’s overseas markets showed moderate recovery. Suzuki’s sales in India rose by 11% year-on-year to 1,171,000 units owing to strong
demand for models including the new Celerio, Alto K10, and Ciaz. Suzuki’s sales in the five key ASEAN countries fell by 18% year-on-year to184,000 units owing mainly to an economic slump. Suzuki’s sales in China grew by 11% year-on-year to 257,000 units owing mainly to thelaunch of the SX4 S-CROSS. Suzuki’s sales in Europe (the European Union and the European Free Trade Association) grew by 1% year-onyear to 161,000 units owing partly to the launch of the Celerio and Vitara and partly to sales of the SX4 S-CROSS throughout the fiscal year.

3. Suzuki Topics in Fiscal 2014
• In April 2014, Suzuki launched a minivehicle-based WagonR in Pakistan.
• In August 2014, cumulative worldwide sales of the Swift (a series
that Suzuki launched in 2004) reached four million units.
• In October 2014, Suzuki began a series of launches for the Ciazby putting it on the market in India.
• In November 2014, Suzuki launched a completely updated Alto K10.
• In January 2015, Suzuki ceremonially laid the foundation stone fora new plant in Gujarat.
• In March 2015, Suzuki held a ceremony as the first unit of theEurope-specification Vitara rolled off the production line.
• Maruti Suzuki India’s sales volume in India exceeded one million
units for the fifth fiscal year in a row.
Iwata Plant(Multi-purpose vehicle and commercial vehicle assembling)

Kosai Plant(Passenger car and automobile engines assembling)

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

SUZUKI MOTOR CORPORATION 7

Year in Review

Celerio

Ciaz

Vitara8 SUZUKI MOTOR CORPORATION

Year in Review

Motorcycles
Suzuki’s Worldwide Manufacturing and Sales
Total overseas motorcycle production (including ATVs) in fiscal 2014 decreased by
11.2% year-on-year to 1,645,000 units. Worldwide production, including production in
Japan, also decreased by 11.5% year-on-year to 1,799,000 units.
Sales of motorcycles (including ATVs) in overseas market decreased by 13% year-onyear to 1,696,000 units, while total global sales, including Japan, also decreased by
12.8% year-on-year to 1,763,000 units.

Operating Results by Segment
In the motorcycle business, the operating income of ¥0.1 billion in the previous fiscal
year became an operating loss of ¥0.7 billion.
Let’s

The Japanese Market
1. Overview of Japanese Motorcycle Market
The total domestic motorcycle sales (factory shipments) of the four Japanese manufacturers in fiscal 2014 fell by 11% year-on-year to 391,000 units owing to a hike in therate of consumption tax. Sales of models with engine displacements of 126cm3 andhigher were down 7% year-on-year at 84,000 units. Sales of models with engine displacements up to 125cm3 were down 12% year-on-year at 307,000 units.
Domestic motorcycle demand dropped sharply after the financial crisis of 2008. That
decrease has since abated. Overall sales are expected to grow year-on-year in fiscal
2015. Notably, demand for models with engine displacements of 126cm3 and higher
has been trending upward during the past few years and looks set to grow further infiscal 2015.

Address 110

2. Suzuki Sales
Suzuki’s domestic sales (factory shipments) of models with engine displacements up to
125cm3 fell by 6% year-on-year to 55,000 units in spite of new products including the
new Let’s and the Address 110. The Company’s sales of models with engine displacements of 126cm3 and higher fell by 19% year-on-year to 10,000 units. Overall, Suzuki
maintained its market share of 16.8% in volume terms but recorded a 9% year-on-year
drop in sales (factory shipments) to 66,000 units.
Suzuki aims to achieve sales growth in fiscal 2015. The Company plans to increase factory shipments of models with engine displacements up to 125cm3 by launching moreproducts. As for models with engine displacements of 126cm3 and higher, which are
more profitable, the Company plans to aggressively promote existing products.

3. Suzuki Topics in Fiscal 2014

GSR250F• In June 2014, Suzuki launched the V-Strom 1000 ABS, a sport adventure tourer thatenables comfortable riding in diverse conditions.
• The GSR250 series is popular owing to its rider-friendly engine. Suzuki added thefully faired GSR250F in September 2014.
• The V-Strom 650 ABS is popular because it allows users to enjoy everything from urban rides to long-distance tours. In October 2014, Suzuki added the V-Strom 650XT
ABS, which has new, adventure-themed styling.
• In December 2014, Suzuki launched the Let’s G, a 50cm3 scooter that’s light, fuelefficient, and user-friendly. In March 2015, the Company launched the Let’s, a basicmodel that offers greater practicality.
• In March 2015, Suzuki launched the Address 110 scooter. This model has low weightfor rider-friendliness around town and an engine that combines great performancewith superior fuel economy.

V-Strom 1000 ABS

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 2014 grew by 4% year-on-year
to 855,000 units. Sales of motorcycles (including ATVs) in North America
grew by 4% to 831,000 units. Sales in the six key ASEAN countries (Indonesia, Thailand, Vietnam, the Philippines, Malaysia, and Cambodia) declined by 3% year-on-year to 13,423,000 units. Sales in China fell by 9%
year-on-year to 10,347,000 units. Sales in India grew by 8% year-on-year
to 16,004,000 units.

Toyokawa Plant(Motorcycles and outboard motors assembling)

2. Suzuki Sales
Suzuki’s overseas motorcycle sales in fiscal 2014 declined by 13% year-on-year to 1,696,000 units. Sales in Europe fell by 5% year-on-year
to 45,000 units. Sales in North America rose for the first time in eight years; they were up 4% year-on-year at 43,000 units. Sales in the six
key ASEAN countries fell by 29% year-on-year to 436,000 units owing mainly to a drop in sales in Indonesia. Sales in China fell by 9% yearon-year to 564,000 units. Sales in India fell by 4% year-on-year to 341,000 units.

GSX-S1000 ABS

V-Strom 650XT ABS

Address

GIXXER

10 SUZUKI MOTOR CORPORATION

Year in Review

3. Suzuki Topics in Fiscal 2014
• Suzuki returned to MotoGP in March 2015 by running the 1,000cm3
inline-four GSX-RR in the season-opening race in Qatar.
• In September 2014, Suzuki unveiled the GSX-S1000/F, V-Strom
650XT, and Address in Europe.
• In August 2014, Suzuki launched the GIXXER in India. This model
earned high praise for its styling and won bike-of-the-year
awards from many media organizations.

MotoGP First Round Qatar

2015 Intermot Motorcycle Show held in Cologne, Germany

GIXXER won many bike-of-the-year awards

SUZUKI MOTOR CORPORATION 11

Year in Review

Marine Products
Operating Results by Segment
In the marine and power products, etc. business, the net sales
increased year-on-year mainly owing to the increase in the salesof the outboard motors in Europe and North America, while theoperating income was at the same level as the previous fiscal year.

Overview of Marine Products
Suzuki’s domestic outboard motor sales in fiscal 2014 fell by 5%
year-on-year in volume terms and by 7% year-on-year in net terms.
One reason was a hike in the rate of consumption tax. Anotherwas a shift in demand toward smaller models. The overall domestic
market shrank, so Suzuki’s share grew from 21% to 24%.
Suzuki’s export sales surged by 9% year-on-year in volume terms
and by 23% year-on-year in net terms. Sales in North America andEurope made a significant contribution. They were strong (especiallyin the United States) owing partly to foreign-exchange effects andpartly to a shift in demand 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.

DF30A

Suzuki Topics in Fiscal 2014
The year 2015 marks 50 years of Suzuki outboard motors. In fiscal 2014, the Company celebrated this milestone by opening an
exhibition at the Suzuki Plaza, by holding a photo contest, and by
publishing a special magazine for worldwide consumption.

DF300AP

12 SUZUKI MOTOR CORPORATION

DF200AP

DF300AP

DF30A

Year in Review

OthersEnvironmental Initiatives
As a manufacturer of automobiles, motorcycles, outboard motors, and other items,
Suzuki acts in consideration of the environment at all product stages from development to disposal.
In product development, our environmental initiatives include improving fuel economy,
reducing exhaust emissions, developing clean-energy vehicles, and reducing 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 and energy 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 programs in local communities.

SUZUKI ENVIRONMENTAL & SOCIAL REPORT 2014

Solar Power Plant

Suzuki Topics in Fiscal 2014
• Suzuki published “Suzuki Environmental and Social Report 2014”. The Company has pubLithium-ion Battery
ISG
lished a report about its environmental initiatives every year since fiscal 1999.
• In June 2014, Maruti Suzuki India switched on a one-megawatt solar power plant that it
had installed in line with an Indian government plan to boost adoption of solar power.
The solar power plant enabled the Company to reduce CO2 emissions by 1,200 tons per
year. Maruti Suzuki India plans to continue harnessing eco-friendly technologies that cut
CO2 emissions. The Company aims to use such technologies to tackle environmental
WagonR
Alto
problems and expand its environmental conservation initiatives.
• In August 2014, Suzuki launched WagonR and WagonR Stingray versions equipped with a newly developed fuel-saving system called SENE CHARGE. An integrated starter generator (ISG) works with a specially designed lithium-ion battery. The ISG generates electricity during
deceleration and stores it in the battery. The ISG uses that electricity to operate as a motor during acceleration, thereby reducing the load
imposed on the engine, so it suppresses fuel consumption without compromising acceleration performance. The S-ENE CHARGE system
combines with an enhanced R06A engine to realize fuel economy of 32.4km/L*1 (the best of any miniwagon in Japan)*2.
• In December 2014, Suzuki launched the eighth-generation Alto. A newly developed platform and comprehensive weight savings make thismodel 60kg*3 lighter than its predecessor. The lightness combines with increased powertrain efficiency to realize fuel economy of 37km/
L*4 (the best of any gasoline-engine vehicle in Japan)*4.
*1 Measured in the JC08 test cycle using the WagonR FZ grade and WagonR Stingray X grade (each with two-wheel drive). Verified by Japan’s Ministry of Land, Infrastructure,
and Transport.
*2 A miniwagon is a minicar with an overall height of at least 1,550mm. Suzuki made the fuel-economy comparison in August 2014 using measurements taken in the JC08
test cycle and verified by Japan’s Ministry of Land, Infrastructure, and Transport.
*3 Suzuki compared the weight of the new Alto (equipped with a continuously variable transmission) with that of the previous-generation Alto Eco.
*4 Suzuki measured the fuel economy in the JC08 test cycle. The comparison excludes hybrids and is based on Suzuki research in December 2014.

Suzuki’s cooperation with other automobile manufacturers
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 has been supplying vehicles in Indonesia since 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 2003. In India, Suzuki has been producing
diesel engines at its own factories since 2006 using technologies acquired from Fiat.
Since 2013, Suzuki has been supplying a 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.

SUZUKI MOTOR CORPORATION 13

Topics

TopicsApril 2014
Launch of WagonR in Pakistan
Pakistani subsidiary, Pak Suzuki Motor started production and sales of a minivehicle-based WagonR. Although the overall length of the WagonR sold inPakistan is stretched 205mm in the engine room to install a 1.0L engine, allof its other features are based on the Japanese minicar. Pakistan is the third
country to launch the WagonR at Suzuki’s
overseas production base after India andIndonesia. Approximately half of Suzuki’s
global automobile sales in this fiscal
year were models based on Japaneseminicars. Centered in Asia, the Japaneseminicar technologies are contributing to
the development of motorization and thedaily lives in each country.
WagonR sold by Pak Suzuki Motor.

July 2014
Achievement of Accumulated Global Production of Three
Million Units for Suzuki Outboard Motor
Suzuki held a ceremony for the achievement of accumulated global production of three million units for the outboard motors at the Toyokawa Plant in
Aichi Prefecture, Japan. Development of outboard motors started in 1962
and the first outboard motor D55 was launched in April 1965. Since then,Suzuki has been developing a wide
variety of outboard motor lineup by
meeting the global market demands.
In addition to the Toyokawa Plant that
produces mid- and large-sized outboard motors, production of smalland mid-sized outboard motors are
conducted at a Thai subsidiary, Thai
Commemoration ceremony held at theSuzuki Motor from July 1999.
Toyokawa Plant on 24 July, 2014

Selection of Recipients for Suzuki Education and Culture
Foundation Scholarships
Suzuki Education and Culture Foundation 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 andare now at university. Founded in 2000
to mark Suzuki’s 80th anniversary, in
its 14th year, the foundation decided
to give scholarships to 54 high school
students and 14 university students, a
total of 68 students for fiscal 2014.

August 2014
Worldwide Sales of Swift Reach Four Million Units
In August 2014, Swift reached cumulative worldwide sales of four million
units in nine years and nine months since the start of sales as a world strategic model in November 2004. First produced andsold in Japan, Swift is currently produced in eight
countries including Hungary, India, and China having been favored in more than 140 countries andregions around the world. Of the four million units,
approximately half were sold in India, followed byapproximately 19% in Europe, and approximately
11% in Japan.
14 SUZUKI MOTOR CORPORATIONClass-Topping Fuel Economy from WagonR with S-ENE CHARGE
Suzuki launched versions of the WagonR and WagonR Stingray with a newly
developed fuel-saving system called S-ENE CHARGE, thereby offering fueleconomy of 32.4km/L*1 (the best of any miniwagon in Japan)*2. An integrated starter generator (ISG) in the S-ENE CHARGE system works as a motor during acceleration, thereby reducing the load imposed on the engine,
so it suppresses fuel consumption without compromising acceleration
performance. The system works together with an idle-stop function. The ISG
promotes comfort by restarting the engine smoothly and quietly.
*1 Measured in the JC08 test cycle using the WagonR FZ grade and WagonR Stingray X grade(each with two-wheel drive). Verified by Japan’s Ministry of Land, Infrastructure, Transport
and Tourism.
*2 A miniwagon is a minicar with an overall heightof at least 1,550mm. Suzuki made comparisons in August 2014 using measurements
taken in the JC08 test cycle and verified by Japan’s Ministry of Land, Infrastructure, Transport
and Tourism.

October 2014
UT Concept on Display at International Home Care andRehabilitation Exhibition
Suzuki displayed a city-oriented electric wheelchair called the UT Concept at the 41st International Home Care and Rehabilitation Exhibition(hosted by the Japan National Council of Social Welfare and the Health and Welfare Information Association). This concept model
has compactness and maneuverability thatmake it ideal for urban pedestrian environments. It also has advanced active-safety
technologies that enable the user to avoid
obstacles and steps and bumps.

Launch of Mid-Size Sedan in Overseas Market
Suzuki launched mid-size sedan Ciaz in India from October 2014. It has
authentic sedan style with rich and elegant design, and is also exported
from India to areas including the Middle East, Latin America, and Africa.
Also in December 2014, a Chinese
joint venture, Chongqing Changan
Suzuki Automobile started its production and launched it under thename Alivio.

Winning of NMMA’s Innovation Award for DF25A/30A
Outboards
Suzuki’s new four-stroke outboard motors DF25A/30A received the 2014
IBEX Innovation Award for outboard motors from the National Marine Manufacturers Association (NMMA) in the US at the International Boat Builder’s
Exhibition & Conference (IBEX) held in Tampa, Florida from 30 September
to 2 October, 2014. Suzuki’s high technologies were accredited by the best awards
in the marine technology, which are given
to those new products that demonstrateconsumer benefits.

Topics

Announcement to Consolidate the Motorcycle Business into the Hamamatsu Plant
Due to the countermeasure to the earthquake and the tsunami, and thedecrease in the domestic motorcycle production volume, Suzuki decided
to consolidate the motorcycle business, which is currently dispersed, into
the Hamamatsu Plant (located in Miyakoda district of Hamamatsu), andrelocate the motorcycle assembly of the Toyokawa Plant (located in Aichi
prefecture) as a part of the consolidation.
Currently, Suzuki’s motorcycle business is dispersed in three different locations: the motorcycle technical center (located in in Iwata, Shizuoka); theTakatsuka Plant (located in Hamamatsu); and the Toyokawa Plant (locatedin Toyokawa). Suzuki decided to consolidate these three locations into theHamamatsu Plant, to consistently operate from engineering, development,
and testing, to production of the engines and the powertrain, and the assembly. By doing so, Suzuki will put efforts into the efficiency of productdevelopment and production of the ever-diversifying motorcycles.

November 2014
Winning of RJC Car of the Year and Japan Automotive Hallof Fame Car of the Year awards for the Hustler minicar
Hustler minicar won the 2015 RJC (Automotive Researchers’ and Journalists’Conference of Japan) Car of the Year and the 2014-2015 Japan Automotive Hall of Fame Car of the Year awards, highly valued for pioneer of a new
genre, adoption of fuel-efficient technologies, sportiness that exceeds its
class, excellent user-friendliness, design, etc. It became a hit with the accumulated sales for its first year exceeding 10,000 units.
Also, as an RJC Special Achievement Award, Nippon (Japanese) Minicar (recipient: Japan Automobile Manufacturers Association, Inc. Mini-Vehicle Committee) was chosen, valued for the brilliant evolution that the minicar has
achieved up to this date, and the role it plays in the Japanese motorization.

Launch of the All-New Alto Minicar
The all-new Alto adopted a newly-developed platform and achieved aweight reduction of 60kg*1 by thoroughly reducing its weight. Along withthe enhanced efficiency of the powertrain, it realized fuel consumptionof 37.0km/L*2, the lowest among any gasoline-engine vehicle in Japan*3.
It evolved in fuel efficiency, driving performance, design, and safety performance, while brushing up basic performances including the ease ofmaneuverability and handling as a utility minicar by returning to the origin of minicar.
Plus, in March 2015, Alto Turbo RS was added to the lineup. The model’s body rigidity is increased, and installed with the enhanced turbo
engine that realizes strong acceleration, coupled with Auto Gear Shiftequipped with paddle shift.
*1 Comparison between the all-new Altoequipped with continuously variabletransmission and conventional Alto Eco.
*2 2WD equipped with continuously variabletransmission.
*3 Suzuki measured the fuel economy of the
new Alto in the JC08 test cycle. Suzuki’s
claim to the best fuel economy of any
gasoline-engine vehicle in Japan is basedon the Company’s research in December
2014 and excludes hybrids.

January 2015
Holding of the Foundation Stone Ceremony of a New
Plant in Gujarat, India
Foundation stone ceremony of new vehicle manufacturing facilities in
Gujarat was held. The purpose of the new plant is to secure production
capacity for future development of the Indian automobile market andexpansion of exports from India. The new plant is aimed to start production from mid-2017, with the annual
production capacity planned to be
250,000 units. Vehicles and parts
produced at new plant in Gujarat will
be supplied only to Maruti Suzuki
India (MSIL), and distributed through
MSIL’s sales network.

December 2014
Launch of New Let’s 50cm3 Scooter Series
Suzuki comprehensively updated the Let’s 50cm3 scooter series and adopted a newly designed engine that offers outstanding fuel economy of
54.8km/L*. The Company offers two versions: the basic Let’s (launched in
March 2015) and the higher-grade Let’s G (launched in December 2014).
Each version is affordably priced and meets daily mobility needs for men
and women across a wide
age range.
*Measured by Suzuki in the Worldwide Motorcycle Test Cycle.

February 2015
Announcement to Fund 35 Scientific Researches for Fiscal 2014 by the Suzuki Foundation
Suzuki Foundation, which was established in March 1980 to mark the 60th
anniversary of Suzuki, selected 33 scientific research projects and two proposed scientific research projects forfiscal 2014. Thus far, the Foundation
has made 1,379 supports including
research projects by universities andresearch institutes in Japan and subsidizing programs in Japan for researchers from overseas.

Let’s (left) and Let’s G (right)

SUZUKI MOTOR CORPORATION 15

Topics

February 2015
Comprehensively Enhanced Versions of the Every andEvery Wagon
Suzuki launched comprehensively enhanced versions of the Every (a onebox commercial minivan) and Every Wagon (a one-box mini passenger vehicle). These models each offer even greater roominess, fuel efficiency, anduser-friendliness. The Every is valuable for work owing to abundant storage
space and outstanding ease of loading and unloading. The Every Wagon additionally incorporates a comprehensive range of comfort-enhancing items
that help users enjoy leisure activities. Plus, each model has advanced safety
technologies including the first collision-mitigating brakes in its class*.

Winning of 13 Bike-of-the-Year Awards in India by GIXXER
Bike-of-the-year awards in 13 categories that are presented by magazines and TV stations in India went to the sportbike GIXXER, which is being produced and distributed by an Indian subsidiary, Suzuki Motorcycle
India. GIXXER has been earning high appraisal in India for its cutting-edge
sporty design, superior fuelefficiency, and strong acceleration. Suzuki will continue
its effort to expand the salesof sportbikes in the growing
Indian motorcycle market.

*Every : one-box minivan class; Every Wagon: one-box miniwagon class

Launch of Address 110 Scooter

Note: The Every Wagon in the photo contains props for illustrative purposes.

Launch of SX4 S-CROSS in Japan
SX4 S-CROSS is a model produced by a Hungarian subsidiary, Magyar
Suzuki, and imported to Japan by Suzuki. It realizes excellent drivability
and stability in various driving scenes through the adoption of new 4WD
system ALLGRIP, and can be used
in a wide range of usage from daily
use to outdoors. Production of the
SX4 S-CROSS started from August
2013 by Magyar Suzuki and they areexported throughout Europe, as wellas to areas including Latin America,
Oceania, and Africa. Its production
also began in China from December
2013 by a joint venture, Chongqing
Changan Suzuki Automobile.

March 2015
World Premiere of Concept Models iK-2 and iM-4 at the
Geneva Motor Show

Suzuki launched the Address 110 scooter, which combines a light, riderfriendly frame with superior performance and fuel economy. An Indonesian subsidiary named PT. Suzuki Indomobil Motor is producing theAddress 110 as a global small scooter, marketing it in Indonesia and exporting it to Japan, ASEAN countries, Europe, and Oceania. Suzuki
is promoting this model as anaffordable new choice for riders
who want to step up from 50cm3
scooters and for those who already ride scooters with displacements of 51cm3 to 125cm3.

VITARA Rolls Off the Line in Hungary
Ceremony for the all-new SUV VITARA was held as it rolled off the production line of a Hungarian subsidiary, Magyar Suzuki. The ceremony welcomed guests including Dr. Viktor Orbán, Prime Minister of Hungary, andJunicihi Kosuge, Ambassador Extraordinary and Plenipotentiary to Hungary.
Osamu Suzuki, Chairman and CEO of Suzuki Motor Corporation attended
the ceremony. The all-new SUV VITARA will be delivered from Magyar Suzuki as a world strategic compact SUV, not only to European countries but
also several new markets, and is planned to be produced 70,000 units in
its first year of manufacturing.

World premiere was made for two concept models, the iK-2 compact
hatchback and the iM-4 mini 4x4 at the 85th Geneva International Motor
Show held in Switzerland. New environmental technologies from Suzuki
were introduced, these are a new-generation platform; the BOOSTERJET, a
new downsized direct-injection turbo gasoline engine; and the SHVS mild
hybrid system. Suzuki plans to launch production model based on the iK-2
in Europe early 2016. Work is underway on developing a production modelof the iM-4 as well.

iK-2

16 SUZUKI MOTOR CORPORATION

iM-4

Dr. Viktor Orbán, Prime Minister of Hungary (right) and Osamu Suzuki, Chairman and CEO of Suzuki
Motor Corporation (left)

Directors, Officers and Auditors

Directors, Officers and Auditors(as of 30 June, 2015)[Representative Directors]
Representative
Director andChairman (CEO)
Representative
Director andVice Chairman
Representative
Director andPresident (COO)
Representative
Director andExecutive Vice
President

Osamu Suzuki

Yasuhito Harayama

Supporting CEO

Toshihiro Suzuki

Osamu Honda

Chief Technology Officer

Eiji Mochizuki

Executive General Manager, Motorcycle Operations

Takashi Iwatsuki

Executive General Manager, Global Business Administration & Planning

Masahiko Nagao

Executive General Manager, Corporate Planning Office[Directors]
Director andSenior Managing
Officer
Director andManaging
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
Outside Company
Auditor

Kunio Nakamura
Shunji Matsumoto
Shin Ishizuka
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
Ichizo Aoyama

Executive General Manager, India/Africa Automobile Operations / Managing Director and CEO,
Maruti Suzuki India Ltd.
Executive General Manager, R&D/Global IT[Managing Officers]
Toshiaki Hasuike

Managing Officer

Kazuo Hakamata
Hiroaki Matsuura
Masato Kasai
Izumi Oishi
Taisuke Toyoda
Hirofumi Nagao
Keiichi Asai
Shuji Oishi
Kazuki Yamaguchi
Shigeyuki Yamamura
Toshiaki Suzuki
Hidenori Yamashita
Kinji Saito
Ichiro Onishi

Deputy Executive General Manager, Automobile Engineering /Joint Managing Director, Maruti Suzuki India Ltd.
Executive General Manager, Purchasing
Executive General Manager, Manufacturing Engineering / Managing Officer, Manufacturing Engineering Dept. Ⅳ
Executive General Manager, Automobile Engineering
Manufacturing / Executive General Manager, Manufacturing
Executive General Manager, Finance / Managing Officer, Finance Dept.
Division General Manager, Pakistan Automobile Division / Managing Director, Pak Suzuki Motor Co., Ltd. (Pakistan)
President, Chongqing Changan Suzuki Automobile Co., Ltd.（China)
Division General Manager, Indonesia Automobile Division / President, PT. Suzuki Indomobil Motor (Indonesia)
President, Suzuki Motor Sales Kinki Inc.
Executive General Manager, Administration / Managing Officer, Human Resources Dept.
Executive General Manager, Domestic Marketing / Managing Officer, Domestic Sales Force Promotion Dept.
Deputy Executive General Manager, Manufacturing (Production Quality Assurance & Overseas Manufacturing) /Managing Officer, Overseas Manufacturing Dept.
Executive General Manager, Global Automobile Operations / Divisional General Manager, Asia Automobile Division
Executive General Manager, Customer Quality Assurance

SUZUKI MOTOR CORPORATION 17

Corporate Governance Issues

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 afurther contribution to the international community. In order to realize that intention, The Company considers that the enhancementof 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 prescribed in 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.

2. Corporate Governance Structure
Corporate governance structure of The Company is as follows.
General Meeting of Shareholders
Appoint/Dismiss

Appoint/Dismiss

Board of Directors
9 Directors (2 Outside Directors)

Audit

Advisory Committee on Personnel
and Remuneration, etc.

Board of Company
Auditors
5 Auditors(3 Outside Auditors)

Accounting
Audit

Corporate Strategy Committee
ReportReportVarious meetingon management
and execution ofoperation

CrisisManagement
Task ForceCooperate

Cooperate

Independent
AuditorCooperate

Audit Department
Corporate Ethics Committee
ReportReportInternal Audit
Consultation
Service

ReportCommunicate Policy
Supervise

Appoint/Dismiss

ReportCommunicate Policy
Supervise

Consult
NotifyEach 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 make decisions on a
sufficient discussion, including in terms of regulatory compliance and corporate ethics, and make efforts to strengthen oversight ofbusiness execution.
Also, for the purpose of enabling the agile corporate management, speeding up decision making and executing operations, and clarifying the individual responsibilities, The Company has introduced a Senior Managing Officer and Managing Officer system.
In order to clarify managerial accountability for individual Directors and flexibly respond to the changing business environment, the termof each Director is set to one year.
(Outside Directors)
By electing Outside Directors who are highly 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 for thegrowth of The Company based on large stock of experience and professional knowledge.
(Corporate Strategy Committee)
At the Corporate Strategy Committee (Chairman: Representative Director and President) which is composed of few executives as acouncil-system organization, important missions and strategies for management are cross-functionally and comprehensively discussed, while pre-reviewing matters to be discussed at the Board of Directors.

18 SUZUKI MOTOR CORPORATIONCorporate Governance Issues(Various meeting on management and execution of operation)
The Company enhances efficiency of management by enabling appropriate execution of operation through closely exchanging important information and identifying administrative issues. To achieve that, The Company holds various councils to discuss countermeasures on execution of management issues weekly, monthly, extraordinarily, or biannually, depending on the content. Members of
the council include Directors, Executive General Managers and Deputy Executive General Managers.
(Advisory Committee on Personnel and Remuneration, etc.)
Aimed to enhance clarity and objectivity upon electing candidates for Directors and Auditors, as well as deciding remuneration of
Directors, as an advisory committee for the Board of Directors, The Company establishes “Advisory Committee on Personnel and Remuneration, etc.”
The majority of the committee is composed of Outside Directors, and an observer participates each from Full-Time Company Auditors
and Outside Company Auditors.
The committee discusses issues such as election standards and adequacy of candidates for Directors and Auditors, as well as adequacy of system and level of Director’s remuneration. The Board of Directors decides based on their results.
Decision for election and remuneration of candidates for Senior Managing Officers and Managing Officers who do not concurrently
serve as Directors are also based on results of the committee’s discussion.
(b) Auditor’s Audit, Internal Auditing, and Independent Auditor(Auditor’s Audit)
The Company’s Board of Company Auditors is composed of 5 members including 3 Outside Company Auditors, and they hold regularmeetings every two months and special board meetings 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 the Board of Directors and various meeting on management and execution of operation, perusing approval documents and various minutes, and receiving reports and explanation from
Directors on execution of business, etc.
2 Full-Time Company Auditors and 1 Outside Company Auditor have large stock of knowledge in finance and accounting due to longexperience of being in charge of accounting in The Group as to Full-Time Company Auditors, and large stock of experience as certified public accountant as to Outside Company Auditor respectively.
(Internal Auditing)
The Company establishes Audit Department as an organization to conduct internal auditing. They audit The Company and domestic
and foreign subsidiaries and affiliates, and periodically check the situation of compliances to laws and regulations, and effectivenessof 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 forcompliance with the laws, regulations and rules and promotes efficiency and standardization of their business.
(Independent Auditor)
2 certified public accountants who engaged in the audit for fiscal 2014 are Satoru Imamura and Koji Sato, who belong to Seimei Audit
Corporation. The numbers of other assistant members for audit are 7 certified public accountants and 10 others.
(Mutual cooperation of Auditor’s Audit, Internal Auditing, and Independent Auditor, and their relationship with departments ofinternal control)
Company Auditors, Audit Department and Independent Auditor cooperate appropriately and audit concerning compliance with laws, internal control, and management efficiency from three different angles.
Company Auditors receive periodical reports from Independent Auditor such as on audit plans and results of quarter reviews, as well as
on situation of conducting fiscal auditing. Company Auditors trade comments and share information as necessary to strengthen cooperation, such as by conducting observation of Independent Auditor’s audit to comprehend situation of conducting auditing, while also
receiving reports on the efforts for quality management of auditing as an audit corporation.
Also, Company Auditors adjust audit plans and auditing themes with the Audit Department, attend its audit whenever necessary, and receive reports and explanation on all its audits.
The Audit Department and Company Auditors exchange information with organization specialized in internal audit, which consists of legal, finance and IT system departments.
(c) Function, role and status of Outside Director and Outside Company Auditor
The Company elected 2 Outside Directors and 3 Outside Company Auditors.
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.

SUZUKI MOTOR CORPORATION 19

Corporate Governance Issues

There are no interest between him and The Company. The Company believes that he is sufficiently independent of the managementof The Company. He is also in charge of a member of “Advisory Committee on Personnel and Remuneration, etc.”
The Company elected Mr. Sakutaro Tanino as Outside Director to receive appropriate supervision and advice related to the management of The Company from the international viewpoints based on a large stock of experience and knowledge as a diplomat. There
are no special interest between him and The Company. The Company believes that he is sufficiently independent of the managementof The Company. He is also in charge of a member of “Advisory Committee on Personnel and Remuneration, etc.”
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. He is also in charge of an observer of “Advisory
Committee on Personnel and Remuneration, etc.”
The Company elected Mr. Masataka Osuka as Outside Company Auditor to appropriately conduct audit of The Company based on along term experiences and knowledge as a management of enterprises. 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 special 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 the below “Standard for Independence of Outside Directors and Outside Company Auditors” based on “Standardof judgment” set by Tokyo Stock Exchange, Inc.
(Reference)
The Standard for Independence of Outside Directors and Outside Company Auditors
The Company never elects any person who falls under any of the followings as a candidate for the Outside Director or Outside Company
Auditor in order to ensure the independence:
1. Persons concerned with the Company and its subsidiaries (“The Group”)(1) With regard to Outside Directors, any person who is or was a person executing business (Note 1) of the Group at present or in the past,(2) With regard to Outside Company Auditors, any person who is or was a Director, Managing Officer, executive officer or
employee of the Group at present or in the past, or(3) A spouse or a relative within the second degree of kinship of the present Director, Managing Officer or executive officer of
the Group.
2. Persons concerned such as business partners or major shareholders, etc.
(1) Any person who is a person executing business of any of the followings:
1) A company of which major business partner is the Group (Note 2)2) A major business partner of the Group (Note 3)3) A major shareholder having 10% or more of total voting rights of the Company
4) A company for which the Group has 10% or more of total voting rights(2) A person who is or was a representative partner or a partner of the Group’s Accounting Auditor at present or in the past five years(3) A person who receives a large amount of remuneration from the Group other than remuneration for Director/Company Auditor (Note 4)(4) A person who receives a large amount of donation from the Group (Note 5)(5) A spouse or a relative within the second degree of kinship of the person who falls under category from (1) through (4) above
Notes 1. A person executing business:
		 A director executing business, a managing officer, an executive officer or an employee
2. A company of which major business partner is the Group:		 A company which belongs to the group of the business partner who receives 2% or more of its consolidated net sales in the		 latest business year ended of the group from our Group in any of the business year in past three years
3. A major business partner of the Group:		 A company which belongs to the group of the business partner who makes payment 2% or more of our Group’s
		 consolidated net sales or provides the Group with 2% or more of loans of its consolidated total assets in the latest
		 business year ended of the Group in any of the business year in past three years
4. A person who receives a large amount of remuneration:
		 A consultant or legal or accounting expert who receives annual compensation of 10 million yen or more (for the		 organization, 2% or more of its annual total revenues) in any of the business year in past three years
20 SUZUKI MOTOR CORPORATIONCorporate Governance Issues

5. A person who receives a large amount of donation:
		 A person who receives annual donation of 10 million yen or more (for the organization, a person directly involved
		 in activities which is the purpose of the donation) in any of the business year in past three years(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 tostrengthen internal control system. The basic policy of internal control system is as follows:(a) Systems to ensure that Directors’ execution of their duties complies with laws and regulations and the Articles of Incorporation
1) Directors shall respect the “Mission Statement” and the “Suzuki Action Charter” and execute their duties in compliancewith the “Rules of the Board of Directors”, the “Approval Procedures” and other rules of the Company, and mutually
supervise their execution of duties through meetings of the Board of Directors, etc.
2) The Company established the “Suzuki Corporate Ethics Rules” witch lays out a set of basic points for Directors andemployees to act in a fair and faithful manner in compliance with the laws, the norms of the society and company rules
and observe the same. It is revised whenever necessary by “Corporate Ethics Committee” which promotes corporate
ethics in The Company.
3) Company Auditors shall audit the execution of duties of Directors in accordance with the audit policies and work
responsibilities set by the Board of Company Auditors.
(b) Systems relating to the storage and administration of the information in relation to Directors’ execution of their duties
Information relating to Directors’ decision-making and execution of duties shall be managed and stored in accordance with laws andregulations and the rules of The Company, and be kept available whenever necessary.
(c) Rules and other systems relating to management of the risk of loss
1) The Company has set up the “Risk Management Procedure” as part of the “Suzuki Corporate Ethics Rules” to establish the risk
management system, and shall manage and cope with risks of losses in accordance with the same.
2) Decision shall be made, while important management matters are sufficiently deliberated, including risk evaluation, in themeetings of the Board of Directors and through the approval system in accordance with the deliberation standard.
3) Risk that is expected to arise with regard to the execution of operation of departments such as engineering, production orsales shall be handled by each department in accordance with the rules of or manuals on the prevention or handling ofsuch risk.
4) To prepare for the occurrence of disasters, The Company shall develop behavior manual and Business Continuity Plan (BCP),
take out insurance or provide training, or other suitable measures.
(d) Systems to ensure that Directors’ execution of their duties is made efficiently
1) As the basic system to ensure that Directors’ execution of their duties is made efficiently, the meetings of the Board of Directors
shall be held in principle every month and at any time whenever necessary. And management councils shall be held whenever necessary to discuss the strategic decision on execution of important management issues.
2) The operational organization shall be revised from time to time in order to clarify the responsibility, strengthen the cooperation
among the concerned sections and establish efficient business operational systems.
3) Business shall be efficiently operated by developing the business plan, periodically confirming the progress of the plan, taking
measures and making revisions from time to time.
(e) Systems to ensure that employees’ execution of their duties complies with laws and regulations and the Articles of Incorporation
1) In addition to (a) 2) above, The Company shall keep every employee informed about the “Suzuki Employees’ Action Charter”
which lays out the norms of action of employees to ensure that employees’ execution of their duties complies with laws
and regulations and the Articles of Incorporation, and revises the same whenever necessary.
2) The Company shall keep every employee informed about the “Action Procedures” and the “Division of Duties” which set up
the proceedings of execution of their duties in details, and other rules of the Company, and revise the same whenever necessary.
3) In accordance with the “Suzuki Corporate Ethics Rules” mentioned in (a) 2) above, the Company shall develop the compliancesystem for employees, and educate them through various training and in-house seminars regarding compliance.
4) The Company shall make its employees report the fact of violation or suspected violation of laws or regulations, and establish
the consultation office with which employees can consult on such fact, etc. or which they can notify in order to promptly
detect it and take corrective measures or actions to prevent the reoccurrence.
5) In accordance with the “Rules of Internal Auditing”, the Audit Department shall audit on the integrity and efficiency of various
control systems, organizations and rules, and properness of function of internal control, etc.
SUZUKI MOTOR CORPORATION 21

Corporate Governance Issues(f) Systems to ensure proper business operation of the Corporate Group consisting of our Company and subsidiaries
A) The system regarding the reporting of matters relating to execution of duties of Directors, etc. of subsidiaries to The Company
Matters relating to decision making and execution of duties of Directors, etc. of affiliated companies are promptly or periodicallyreported by affiliated companies to The Company in accordance with the “Rules of Business Control Supervision for Affiliated Companies”.
B) Rules and other systems regarding the management of the risk of losses in subsidiaries
The Company shall manage the risk of losses in affiliated companies in accordance with “Risk Management Procedure” set up in“Suzuki Corporate Ethics Rules”. If the risk of losses arises, The Company shall appropriately take actions jointly with affiliated companies.
C) Systems to ensure that the execution of duties of Directors, etc. of subsidiaries is made efficiently
1) To ensure an efficient business operation of the Corporate Group, The Company shall conduct the followings in accordance with		 the “Rules of Business Control Supervision for Affiliated Companies”.
		 (a) The Company’s departments in charge stipulated in the Rules at any time shall give guidance and advice to the affiliated			 companies on their business operations and managements, and cooperate with them.
		 (b) The Company’s Audit Department shall make rules for the affiliated companies in order to reinforce their management
			 practices. It shall also promote efficiency and standardization of their business.
2) The Company shall periodically confirm the progress of the business plan developed by affiliated companies and provide
		 guidance, supports and auditing in order to urge affiliated companies to take actions or make revisions appropriately.
3) The Company and its affiliated companies shall share the management policies or information in The Company’s monthly
		 meetings to report the status of performance for each section and group meetings held as needed in order to efficiently and		 properly conduct business through mutual cooperation.
D) Systems to ensure that the execution of the duties of Directors, etc. and employees of subsidiaries complies with laws andregulations and the Articles of Incorporation
The Company shall keep every Director, etc. and employee of affiliated companies informed about the importance of the compliancewith laws and regulations, the norm of the society and internal rules, etc. and fair and sincere behaviors. It shall also provide
guidance, supports and auditing in order to make appropriate rules in accordance with laws and regulations or legal environmentof the country where affiliated companies locate.
(g) Matters for employees to support the business of the Company Auditors when the Company Auditor seeks appointment of
the employees
1) The secretariat of the Board of Company Auditors shall be established in the Audit Department.
2) The assistants of the business of the Company Auditors shall be placed as required.
(h) Matters for independence of the employees mentioned in (g) above from the Directors and for ensuring the efficiency of
instructions given the employees
1) The hiring, transfer and discipline of the assistants of the Company Auditors shall be consulted with the Company Auditor previously
appointed by the Board of Company Auditors.
2) The Company Auditor appointed by the Board of Company Auditors may request the change of the assistant at any time. The Directors
shall not deny the request without reasonable reasons.
3) The personal evaluation of the assistant of the Company Auditors shall be consulted with the Company Auditor appointed
by the Board of Company Auditors.
4) The Audit Department shall clearly state that the assistant work for the Company Auditor conducted under the instruction andcontrol of the Company Auditor shall not be subject to the instruction and control of any other persons than the Company Auditor
in the Division of Duties, and carry out it thoroughly.
(i) System for Directors and employees to report to the Company Auditors and system for the Directors, the Company
Auditors and employees of subsidiaries to report or any recipient of such reporting to report to The Company’s
Company Auditor, and other systems for reporting to the Company Auditors
1) If Directors, etc. of The Company and its affiliated companies find any fact that could cause tremendous loss on The Company,
they shall immediately report it to the Company Auditors.
2) Approval Procedures, Affiliated Company Consultation Documents and minutes of the management councils shall becirculated to the Company Auditors, and any other references requested by the Company Auditors shall be provided.
3) The Company Auditors shall conduct the followings as required when implementing internal auditing and auditing of affiliated companies.
(a) Adjust the audit themes with the General Manager of the Audit Department(b) Present at the auditing and attend the briefing of the audit results(c) Receive the circulation of the audit report or the report of the audit results4) The Group’s department in charge of consultation shall periodically report to the Company Auditors about the status ofconsultation from the Group’s employees.
22 SUZUKI MOTOR CORPORATIONCorporate Governance Issues(j) Systems to ensure that any person reporting to Company Auditors will not be unfairly treated on the ground of making
such reportingIn accordance with “Suzuki Corporate Ethics Rules”, the Company shall not make any disadvantageous treatment such as dismissalon the basis of having reported to Company Auditors mentioned in (i) above. It shall also take suitable measures to prevent theworsening of office environment surrounding the reporter.
(k) Matters regarding procedures for prepayment or redemption of expenses arising from the execution of duties of Company
Auditors and processing of other expenses or liabilities arising from the execution of such duties
1) The Company shall allocate a certain amount of budget every year to pay expenses arising from the execution of duties ofCompany Auditors.
2) If the Company Auditors require the Company to make prepayment, etc. of expenses in accordance with Article 388 of theCompanies Act, the Company shall quickly process that expenses or liabilities, except where it is considered that the expenses or
liabilities relating such request are not necessary for the performance of duties of Company Auditors.
3) The Company Auditors may use the external advisers including attorneys, certified public accountants and others in implementing
audit as required.
(l) Other System to ensure effecting auditing by the Company Auditors
1) The Company Auditors shall attend the meetings of the Board of Directors and other important meetings.
2) The Company Auditors shall hold periodic meetings with Accounting Auditors, exchange information or opinions and ask Accounting
Auditors to make reports, when necessary.

(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)
Classification
Directors(excluding Outside Directors)
Company Auditors(excluding Outside Company Auditors)
Outside Directors/Company Auditors

Total amount of
remuneration

Amount of each type of remuneration
Basic pay
Stock option
Bonus

Number of payees

527

273

79

174

7

47

47

―

―

3

27

27

―

―

5

Notes: 1. The amount of remuneration limit for Directors (¥80 million per month) was resolved at the 135th Ordinary General
		 Meeting of Shareholders held on 28 June, 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 29 June, 1989.
3. The maximum amount of remuneration for Directors for stock options as compensation (¥170 million per year) was resolved
		 at the 147th Ordinary General Meeting of Shareholders held on 27 June, 2013 and 148th Ordinary General Meeting		 of Shareholders held on 27 June, 2014.
		 The above-mentioned “stock options” is the amount recorded as expenses of current fiscal year, among the amount of		 remuneration for stock acquisition rights granted for stock options.
		 As for stock options as compensation, due to decision of new policy for amount of Director’s remuneration as stated in		 (4)(b), the Company has decided not to newly grant options after granting them in July 2014.
4. 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.
		 Please notice that bonus for Outside Directors and Company Auditors were abolished for the following years of fiscal 2013
		 and basic remuneration is solely maintained.
5. Remuneration of Company Auditors includes one Company Auditor who retired at the closure of the 148th Ordinary		 General Meeting of Shareholders held on 27 June, 2014.
6. In addition to the above, ¥7 million was paid to 1 retired Director and ¥5 million was paid to 1 retired Company Auditor
		 as retirement benefits for Directors and Company Auditors under the resolution at the 140th Ordinary General Meeting		 of Shareholders held on 29 June, 2006.
7. The following information is disclosed in 149th annual securities report･Total amount of consolidated remuneration paid to persons who received consolidated remuneration of ¥100 million or		 more each.

SUZUKI MOTOR CORPORATION 23

Corporate Governance Issues(b) Policy for determination of the amount of remuneration for Directors and Company Auditors
In April 2015, The Company established “Advisory Committee on Personnel and Remuneration, etc.” with Outside Directors constituting
half or more of its members, as an advisory committee to the Board of Directors, in order to enhance the objectivity and transparency of
remuneration of Directors, etc.
(Remuneration of Directors)
Remuneration of Directors (excluding Outside Directors) shall consist of basic remuneration consisting of basic pay for each positionand evaluation of individual performance, bonus linked to the Company’s performance of each fiscal year and stock-based remuneration linked to the Company’s mid- and long-term performance or stock price. Remuneration of Outside Directors shall be solely basic
remuneration (at the fixed amount).
Also, remuneration of Directors shall be decided by the Board of Directors based on the deliberation results of “Advisory Committee on
Personnel and Remuneration, etc.” on the policy regarding the decision of Director’s remuneration, standards, remuneration system andadequacy of the remuneration level.
The basic remuneration shall be within the range of the amount of remuneration limit (monthly amount) approved at a General Meetingof Shareholders, and the amount of remuneration for each Director shall be determined and paid in consideration of the duties and responsibilities of each Director.
As for bonuses, a proposal based on the calculation method linked with the Company’s performance shall be submitted to an Ordinary
General Meeting of Shareholders for approval and then paid.
Bonuses for Outside Directors were abolished for the following years of fiscal 2013.
The stock-based remuneration shall be paid within the range of amount of remuneration limit (monthly amount) approved at the General Meeting of Shareholders, as the remuneration that is linked to mid-and long-term Company’s performance and stock price. Directors shall contribute such type of remuneration to the officer stockholding association every month, acquire the Company’s shares andcontinuously hold them during their term of office.
(Remuneration of Company Auditors)
Remuneration of Company Auditors shall be solely basic remuneration (at fixed amount), and the amount shall be decided and paid in
the discussion among Company Auditors within the range of the amount of remuneration limit (monthly amount) approved at a General
Meeting of Shareholders.
Bonuses for Company Auditors were abolished for the following years of fiscal 2013.
While the Company discontinued its retirement benefits plan for officers at the 140th Ordinary General Meeting of Shareholders, held on
29 June, 2006, it has introduced the granting of stock options as compensation (stock acquisition rights) with a view toward strengthening Directors’ connection to the Company’s performance and stock price and ensuring that Directors share with shareholders 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 28 June, 2012.
However, the Company has decided not to newly grant options after granting them in July 2014.
(Reference)
Remuneration of Directors are calculated using a method based on points set for each position of Directors as per below.
As for the calculation method, The Company received a document that states that all Company Auditors agreed on appropriateness of the method.

1. Calculation method
Paid amount = Consolidated net income × 0.18% × Each Director’s point ÷ Total of Director’s point
Notes: 1. “Indexes on profits for such accounting period” stated in Article 34(1)(iii)(a) of Corporation Tax Act of Japan is “Consolidated
		 net income”.
2. As of April 2015, amount of above-mentioned “Consolidated net income” used in the method is amount shown as “Net		 income attributable to owners of the parent”, which is an amount before accounting loss of such paid remuneration amount.
3. Amount of consolidated net income multiplied by 0.18% is rounded down to the nearest million.

2. Number and point of Directors by position
ChairmanVice Chairman
President
Executive Vice President
Directors
Total
Note: Above number is based on number of Directors as of 30 June, 2015.

24 SUZUKI MOTOR CORPORATION

Point
30
18
22
18
13
―

Number of Directors
1
1
1
1
3
7

Total Point
30
18
22
18
39
127

Corporate Governance Issues

3. Eligible person
Only Directors that apply to “Managing members” as stated in Article 34(1)(iii) of Corporation Tax Act of Japan, and excludes Outside Directors.

4. Fixed amount“Fixed amount” as stated in Article 34(1)(iii)(a)[1] of Corporation Tax Act of Japan is limited up to ¥300 million. If amount of consolidated net income multiplied by 0.18% exceeds ¥300 million, ¥300 million divided by each Director’s point would become remuneration of each Director.

5. Others
Remuneration of Director retiring during the fiscal year would be decided by calculating amount of remuneration that would havebeen paid if expiring the full fiscal year, and dividing it by the actual service months (rounded down to the nearest 10,000).

(5) Remuneration for Independent Auditor for current fiscal year(a) The remuneration amount to be paid by The Company to Independent Auditors is ¥85 million.
(b) The remuneration amount to be paid by The Group to Independent Auditors is ¥88 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, the amount 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 31 March, 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 31 March, 2015 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 31 March, 2015.
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
31 March, 2015.

SUZUKI MOTOR CORPORATION 25

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 31 March, 2015.

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 rapidchange 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 andmotorcycles 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 andmanufacturing system, 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
to the market new attractive products that satisfy the customers in a timely manner. It has become more important than ever to understand customer needs that rapidly change, such as the reduced demands caused by domestic and overseas economic slowdown andthe 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
the customer needs in a timely manner on account of technical abilities, procurement of parts, production capabilities and other factors. If we are unable to launch products matching the customer needs to the market in a timely manner, the sales share and sales may
be reduced, which may adversely affect 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 beensuch changes so far. Rapid changes in product prices and purchase prices may adversely affect the performance and financial positionsof 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, andprice competitiveness. 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 ventureswith local companies in accordance with local laws or other requirements. These businesses are restricted by various legal and otherregulations in each country (including those related to tax, tariff, overseas investment and fund transfer to the home country). Anychanges to such regulations, or management policies or management environment of the joint venture partners may adversely affectthe performance and financial conditions of The Group.

26 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, andthe 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 ofemission 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
Group is 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 largescale 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 anddevelopment, manufacturing, sales and finance, but factors that cannot be controlled by The Group such as situations inherent to thealliance partners 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 conditionsof 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,
the head 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 such as quake-resistant measures for buildings and facilities, fire preventive measures, establishment of BCP (Business ContinuityPlan), 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 delayor suspend the purchase of raw materials and parts, manufacturing, sales of products, and provision of logistics and services. If suchdelay 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 therisks of The Group.

SUZUKI MOTOR CORPORATION 27

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 133 companies and affiliates of 35. 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 inoverseas, by a subsidiary Thai Suzuki Motor Co., Ltd. and anaffiliate, 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 purchasedby 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 Deutschland 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 othermarketing companies throughout the market, and in overseas
markets, by a subsidiary, Suzuki Deutschland GmbH and othermarketing companies and manufacturing & marketing companies. The business of logistics services is conducted by a subsidiary, Suzuki Transportation & Packing Co., Ltd.

28 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

Maruti Suzuki India Ltd.
Suzuki Motorcycle India Private Ltd.

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

PT Suzuki Indomobil Motor
Pak Suzuki Motor Co., Ltd.

○○○

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

○

Suzuki Manufacturing ofAmerica Corp.

○

Suzuki Motor de Colombia S.A.

Suzuki Auto Parts Mfg. Co., Ltd.

M/C A/M M/P○

Snic Co., Ltd.
Suzuki Toyama Auto Parts Mfg Co., Ltd.
☆ Hamana Parts Industry Co., Ltd.

☆ Chongqing Changan
Suzuki Automobile Co., Ltd.

○
○

○
○

○

○

○
○

○

☆ Jinan Qingqi Suzuki
Motorcycle Co., Ltd.

○

Overseas Marketing Companies

M/C A/M M/P○○

Suzuki Deutschland GmbH
Suzuki GB PLC
Suzuki Italia S.p.A.
Suzuki Motor Iberica, S.A.U.

Suzuki Transportation& Packaging Co., Ltd.

○☆ Jiangxi Changhe Suzuki
Automobile Co., Ltd.

Suzuki France S.A.S.

Logistic Services

○

○

○

The Company

Domestic Manufacturing Companies○○

M/C A/M M/P

Suzuki Austria Automobil Handels GmbH○

Suzuki Finance Europe B.V.

○○

Suzuki Motor of America, Inc.
Suzuki Australia Pty. Ltd.
Suzuki Motor de Mexico, S.A. de C.V.

Domestic Marketing Companies
Suzuki Motorcycle Sales 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 29

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

30 SUZUKI MOTOR CORPORATION

Management Discussion and Analysis

Management Discussion and Analysis

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

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

(3) Selling, general and administrative expenses

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

(4) Other income and expenses

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

SUZUKI MOTOR CORPORATION 31

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

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

2. Liquidity and capital resources(1) Cash flow

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

(2) Demand for money

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

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

32 SUZUKI MOTOR CORPORATIONFive-Year Summary
SUZUKI MOTOR CORPORATIONCONSOLIDATED

Thousands of
US dollars(except per
share amounts)

Millions of yen(except per share amounts)

Years ended 31 March

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

2015

2014

2013

2012

2011

2015

¥3,015,461¥2,938,314¥2,578,317¥2,512,186¥2,608,217

96,862$25,093,298

107,484

80,38953,88745,174806,044172.67

191.60143.31

96.06

80.65

1.44

191.57131.67

88.28

74.11

24.00

18.00

15.00

13.00

1,494,357

1,298,553

1,111,757

1,106,999

1,790,832

1,560,218

1,509,568

1,372,885

2,874,074

2,487,635

2,302,439

2,224,344

117,188

93,680103,117

138,368

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

172.6327.00

1,701,390

2,008,729

3,252,800

134,377

NON-CONSOLIDATED

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

0.22

14,158,199

16,715,730

27,068,326

1,118,228

Thousands of
US dollars(except per
share amounts)

Millions of yen(except per share amounts)

Years ended 31 March

1.44

2015

2014

2013

2012

2011

2015

¥1,663,147¥1,498,853¥1,422,595¥1,383,269¥1,409,205

51,248$13,839,954

67,21936,405

15,846

10,834426,46391.34

119.81

64.89

28.25

19.34

91.32

0.76

119.79

59.64

25.98

17.80

24.00

18.00

15.00

13.00

937,767

859,224

761,353

703,292

691,207

1,070,668

921,352

921,669

818,964

1,850,068

1,641,700

1,597,903

1,524,232

33,60535,62638,532

61,265

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

27.00

1,191,614
2,096,545
37,4210.76
0.22

7,803,677
9,916,069

17,446,495

311,407

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

SUZUKI MOTOR CORPORATION 33

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

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

Thousands of
US dollars

Millions of yen

2015

2014

2015

¥ 932,261¥ 710,611$ 7,757,854

316,826

310,694

2,636,483

314,391

276,285

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

(4,156)(4,804)(34,590)2,616,222

115,015

105,064

2,008,729

1,790,832

16,715,730

259,540

238,532

2,159,774

334,391

392,982

957,1092,782,651

Property, plant and equipment:
Land *NOTE 5..........................................................................
Buildings and structures *NOTE 5...........................................

Machinery, equipment, vehicles...........................................
Tools, furniture and fixtures...................................................

403,922

1,280,563

391,797385,797
1,120,381
378,011

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

70,45696,560

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

(1,610,388)(1,524,862)

2,406,280

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..........................................................................

2,219,283

10,656,269

3,260,357
586,310

20,023,967(13,400,915)

795,892

694,420

6,623,051

341,325

270,3292,840,355

59,544

1,860

19,98525,462

448,179¥3,252,800

55,69915,862
20,92426,005
388,821¥2,874,074

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

34 SUZUKI MOTOR CORPORATION

3,361,255

495,501

15,484

166,311

211,889

3,729,543$27,068,326

Consolidated Financial Statements

Thousands of
US dollars

Millions of yen

LIABILITIES AND NET ASSETS
Current liabilities:

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

Accounts payable-trade *NOTE 4 ..........................................
Income taxes payable........................................................
Accrued expenses *NOTE 4 ...................................................
Provision for product warranties.........................................
Deferred tax liabilities.............................................................
Other *NOTE 5 .........................................................................
Total current liabilities..........................................................
Noncurrent liabilities:

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

Provision for disaster..........................................................
Deferred tax liabilities.........................................................
Other *NOTE 5..........................................................................
Total noncurrent liabilities...................................................
Total liabilities......................................................................

2015

2014

2015

¥ 177,805¥ 197,413$ 1,479,615

479,950

433,819

181,217

171,274

104,145
21,79738,74846,62860,30561,447

121,188

106,634

6,190

967

866,650

3,993,925
181,392

1,508,005
501,835

51,517

1,008,479

1,152,601

1,056,933

9,591,423

272,717

209,166

2,269,426

40,791
8,923

43,76636,918
16,59629,179339,450
74,260364,208

32,60930,923

1,551,409

1,379,717

12,910,126—

1,148,495

398,808

322,783

271,357

3,318,703

Net assets:
Shareholders’ equity: *NOTE 11
Capital stock:
Common stock: Authorized-1,500,000,000 shares Issued,
as of 31 March 2015 – 561,047,304...............................
as of 31 March 2014 – 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..............

138,014—138,014

1,082,440

1,008,555

144,364(62)

144,364(57)—

1,201,337

9,007,576(517)

1,364,757

1,290,877

11,356,893

158,788

104,745

1,321,361

679(42,997)864

131(72,898)
3,867

5, 654(357,806)
7,190

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

117,333

35,846

976,399

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

250

168

2,088

¥1,701,390¥1,494,357$14,158,199¥3,252,800¥2,874,074$27,068,326

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

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

219,048

167,464

1,822,818

SUZUKI MOTOR CORPORATION 35

Consolidated Financial Statements

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

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

2015

2014

2015

¥3,015,461¥2,938,314$25,093,298

2,190,309

2,142,754

825,152

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.................................................................................

1,493,091

25,25918,441

210,200

Income before minority interests........................................
Minority interests in income................................................
¥(1,454)(115)

193,246

197,090

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

¥

1,608,111

70,58967,212587,415(4,569)(41,362)

2,387

65,61969,600546,052

127,627

127,489

1,062,058

30,76520,00596,862¥ 107,484

172.67172.6327.00$

256,014806,044

US dollars¥

191.60191.57
24.00

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

36 SUZUKI MOTOR CORPORATION(12,105)(2,823)Yen

Net income per share:(78,505)(6,158)(4,970)

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

5,373,449

607,812
187,747(549)

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

6,866,540

179,424(9,433)

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

18,226,758

795,559

645,727

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

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

Thousands of
US dollars

Millions of yen

$

1.44

1.44

0.22

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

Thousands of
US dollars

Millions of yen

SUZUKI MOTOR CORPORATIONAND CONSOLIDATED SUBSIDIARIES

2015

2014

2015

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

¥127,627¥127,489$1,062,058

57,73447,596

480,437

Other comprehensive income *NOTE 12
Valuation difference on available-for-sale securities.........
Deferred gains or losses on hedges..................................
Foreign currency translation adjustment...........................

587

46,774(1,196)27,555

4,884

389,233

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

(3,005)—(25,012)

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

3,489

7,504

29,038

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

105,579

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

233,206

208,949

1,940,639

178,312

187,105

1,483,833

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

54,894

21,844

456,806

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

SUZUKI MOTOR CORPORATION 37

Consolidated Financial Statements

Consolidated Statements of Changes in Net Assets
Years ended 31 March 2015 and 2014

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

Millions of yen
Thousandsof sharesof common
stock

561,047

Capitalstock

CapitalsurplusRetainedearnings

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

Total othercomprehensive income

Subscription
rights toshares¥(47,642)¥84

Minority
interests¥151,513———(11,220)

—

—

—

—

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

—

—

—

107,484

—

—

—

—

Purchase of treasury stock..

—

—

—

—

(5)

—

—

—

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

—

—

(13)

—

35

—

—

—

—

—

13

(13)

—

—

—

—

—

—

—

—

—

83,48883

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

—

—

—

—

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

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

—

—

—

—

(13,464)

—

—

—

—

—

—

—

96,862

—

—

—

—

—

—

—

(1,384)

—

—

—

—

—

—

—

—

(30)

—

—

—

—

—

(9)

—

25

—

—

—

—

—

9

(9)

—

—

—

—

—

—

—

—

—

81,487

81

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

Thousands of US dollars

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

Thousandsof sharesof commonstock

Capitalstock

CapitalsurplusRetainedearnings

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

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

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

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

—

—

—

(112,049)

—

—

—

—

—

—

—

806,044

—

—

—

—

—

—

—

(11,521)

—

—

—

—

—

—

—

—

(252)

—

—

—

—

—

(77)

—

212

—

—

—

—

—

77

(77)

—

—

—

—

—

—

—

—

—

678,102682

429,253

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

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

38 SUZUKI MOTOR CORPORATION

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

Consolidated Financial Statements

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

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

Thousands of
US dollars

Millions of yen

2015

2014

2015

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

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

382$7,757,854

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

SUZUKI MOTOR CORPORATION 39

Consolidated Financial Statements

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

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

NOTE 2: Summary of significant accounting policies(a) Principles of consolidation
The consolidated financial statements for the years ended 31 March 2015 and 2014, include the accounts of The Group. And
the numbers of consolidated subsidiaries are both 133. All significant inter-company accounts and transactions are eliminatedin consolidation. Investments in affiliated companies are accounted for by the equity method.
The difference at the time of acquisition between the cost and underlying net equity of investments in consolidated subsidiaries (goodwill) and in affiliated companies accounted for under the equity method is, as a rule, amortized on a straight-line
basis over a period of five years after appropriate adjustments.
Consolidated subsidiaries that settled the account in 31 December without provisional account settlement as of consolidated
account settlement date were consolidated with the financial statements based on their financial statements as of 31 December and made necessary adjustments for consolidation regarding important transactions that occurred between 31 December
and consolidated account settlement date.
From this consolidated fiscal year, Suzuki Motor Iberica, S.A.U. and other 5 subsidiaries have changed the settlement datefrom 31 December to 31 March and Suzuki Motor (Thailand) Co., Ltd. and other 16 subsidiaries have been consolidated
based on the financial statements of provisional account as of consolidated account settlement date. As a result, subsidiary
which has been consolidated based on the financial statements as of 31 December is 1 subsidiary.
With regard to these changing mentioned above, the net income (loss) of three months from 1 January to 31 March 2014 has
been recognized in retained earnings.
As a result, retained earnings decreased by ¥1,384 million from the beginning of this consolidated fiscal year.
The account settlement date of Magyar Suzuki Corporation Ltd. and other 4 subsidiaries is 31 December, but they are continuously consolidated based on the financial statements of provisional account settlement as of 31 March.
The account settlement date of other consolidated subsidiaries is the same as the consolidated account settlement date.

(b) Allowance for doubtful accounts
In order to allow for loss from bad debts, estimated uncollectible amount based on actual ratio of bad debt is appropriated as
to general receivable. As for specific receivable with higher default possibility, recoverable amount is estimated respectively
and uncollectible amount is appropriated.
(c) Allowance for investment loss
The differences between the book value and the fair value of securities and investment not quoted at an exchange are determined and appropriated as reserve in order to allow for losses from these investments.
(d) Provision for product warranties
The provision is appropriated into this account based on the warranty agreement and past experience in order to allow for
expenses related to the maintenance service of products sold.
(e) Provision for directors’ bonuses
In order to defray bonuses for directors and company auditors, estimated amount of such bonuses is appropriated.
(f) Provision for directors’ retirement benefits
The amount to be paid at the end of fiscal year had been posted pursuant to The Company’s regulations on the retirement
allowance of Directors and Company Auditors. However, The Company’s retirement benefit system for them was abolished at
the closure of the Ordinary General Meeting of Shareholders held on 29 June 2006. And it was approved at Ordinary General
Meeting of Shareholders that reappointed Directors and Company Auditors were paid their retirement benefit at the time of
their retirement, based on their years of service. Estimated amount of such retirement benefits is appropriated at the end of thecurrent consolidated fiscal year. Furthermore, for the Directors and Company Auditors of some consolidated subsidiaries, theamount to be paid at the end of the year was posted pursuant to their regulation on the retirement allowance of Directors andCompany Auditors.
40 SUZUKI MOTOR CORPORATION

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

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

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

42 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

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

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

SUZUKI MOTOR CORPORATION 43

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

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

Carrying
amount¥457,513
316,826

2015

2014
—
1,741

Carrying
amount¥358,851
310,694

Fair value

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

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

—
52
1,794
—
—
377
—
4,370
4,747

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

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

—
(261)
265
—
—
(31)
—
1,291
1,260

1,072
1,603

1,072
1,603

—
—

51
1,160

51
1,160

—
—

2015

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

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

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

8,922
13,3398,922
13,339——Fair value

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

44 SUZUKI MOTOR CORPORATION

Difference

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

Thousands of US dollars

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

Fair value

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

Millions of yen

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

2015

2014

2015

¥18,748¥18,747$156,013

23,084

119

17,077557

192,098

997

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 45

Consolidated Financial Statements*3. The amounts to be redeemed after the account settlement date of monetary receivables and available-for-sale securities
Millions of yen
2015

Within1 yearCash and deposits
Notes andaccounts receivables- trade
Securities and investment
securities with maturities
Total¥ 457,513

2014

Over 1 year,
Within5 years¥—

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

Over 5 years,
Within
10 years—¥ —75,017435

249,336

60,831

526

685,647¥1,384,534—¥75,017—¥435

612,489¥1,220,677—¥60,831—¥526

Thousands of US dollars
Over 1 year,
Within5 years

Over 5 years,
Within
10 years

2,008,598

624,264

3,619

5,705,647$11,521,469—$624,264—$3,619Within1 year46 SUZUKI MOTOR CORPORATIONOver 1 year,
Within5 years

241,373

2015

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

Within1 year$ 3,807,223

$

—

$

—

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

2015
Acquisition
cost

2014

Carrying
AmountDifference

Acquisition
cost

Carrying
AmountDifference¥250,014¥158,148

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

¥ 93,769¥ 320,628¥ 226,859¥ 91,865———

249,238

263,329

14,090175,441

181,767

6,325¥267,307¥431,782¥164,474

¥

¥

¥

—

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

¥343,008

Sub-Total—¥ 583,957—¥ 240,949

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

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

1,549
—

422,198

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

¥423,748

Sub-Total¥766,756

Total

¥

1,191
—

422,198¥ 423,389¥1,007,347

¥

(358)
—

—

¥

(358)

¥ 240,591

1,928

1,567

(361)

5,000

5,000

—

425,164

425,164—¥432,093¥431,732¥¥699,401¥863,514¥164,113(361)

Thousands of US dollars

2015
Acquisition
cost

Carrying
AmountDifference

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

$ 780,304 $ 2,668,124—

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

2,074,052—

2,191,308$ 2,854,357 $ 4,859,432$1,887,819—

117,255$2,005,075

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

12,898—3,513,341$ 3,526,239$

9,913 $

(2,984)——

3,513,341—$3,523,254 $$ 6,380,596 $ 8,382,687(2,984)$2,002,090

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

Millions of yen

2015
Amounts sold......................................................................
Gains on sales of available-for-sale securities..................
Loss on sales of available-for-sale securities ...................

2015

2014

¥206,255——¥165,779
17
0$1,716,364——

SUZUKI MOTOR CORPORATION 47

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

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

2015

2014

Contract/
notional
amountAmountdue after
one year

Fair value¥ 3,746
1,694
14,550¥19,990

—
—
—
—

¥394
(16)
(43)
¥333

Gain
(loss)

¥394
(16)
(43)
¥333

Contract/
notional
amountAmountdue after
one year

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

Gain(loss)¥(142)—(262)¥(404)

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

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

48 SUZUKI MOTOR CORPORATION

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

¥

—

¥

—

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

Contract/
notional
amount¥—¥1,200

¥

—

¥

84

Gain
(loss)

¥

84

5,568

2,784

1,323

1,323

7,153

4,769

1,536

1,536

12,017

12,017

0

0

—

—

—

—

10,000¥27,585

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

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

2015

Contract/
notional
amountAmountdue after
one year

Fair value

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

100,000

100,0000083,215$229,555

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

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

Contract/
notional
amount¥1,304¥1,3042015
Amountdue after
Fair value
one year
¥(54)
¥(54)

—
—

Gain
(loss)

¥(54)
¥(54)

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

¥(55)
¥(55)

Gain
(loss)

¥(55)
¥(55)

Thousands of US dollars
Type
Commodity
Futures contract
BuyingTotal

2015

Contract/
notional
amountAmountdue after
one year

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

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

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

SUZUKI MOTOR CORPORATION 49

Consolidated Financial Statements

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

Millions of yen

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

50 SUZUKI MOTOR CORPORATION

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

*
*
*
*
*
*
*
*
*
*
*
¥(188)

Consolidated Financial Statements

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

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

Interest and currency related transactions

Millions of yen

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

Principal
hedged item

Fair value

¥ —

(73)

2

311

—

—

—
¥240

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

Principal
hedged item

Fair value$ (274)(149)

SUZUKI MOTOR CORPORATION 51

Consolidated Financial Statements

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

(135)

*

*

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

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

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

Millions of yen

2015

2014

2015

¥281,950¥236,161$2,346,265¥281,994¥236,207

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

43

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

365

46

$2,346,631

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

Millions of yen

2015

2015

2014

Long-term loans payable maturing through 2020
Secured...............................................................................
Unsecured..........................................................................
Lease obligations due more than one year...........................
Other interest-bearing debts (Long-term guarantee deposited)¥—272,71749

13,731¥286,497¥

236

208,93072
13,655¥222,894$—

2,269,426

408

114,270$2,384,104

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

52 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

The aggregate annual maturities of long-term debt, excluding other interest-bearing debt, outstanding as of 31 March 2015 were as follows:Year ending 31 March2017........................................................................................
2018........................................................................................
2019........................................................................................
2020........................................................................................
Thereafter................................................................................

Millions of yen

Thousands of
US dollars¥ 46,879$ 390,108

50,160417,41390,725754,975

8,000

77,00066,577

640,758¥272,766$2,269,834

Millions of yen

Thousands of
US dollars¥643$5,352¥740$6,160Millions of yen

Thousands of
US dollars¥448$3,734

Assets pledged as collateral as of 31 March 2015:

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

97

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

807

Secured liabilities as of 31 March 2015:

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

NOTE 6: Loan commitment

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

Millions of yen

2015
Commitment line contract total..............................................
Actual loan balance................................................................
Variance

2015

2014

¥200,000—¥200,000¥200,000—¥200,000$1,664,308—$1,664,308

SUZUKI MOTOR CORPORATION 53

Consolidated Financial Statements

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

Opening balance of retirement benefit obligation
Service cost
Interest cost¥108,739

6,024
2,199

(611)

Actuarial differences arised in current fiscal year
Retirement allowance paid

(4,940)
159

Past service cost arised in current fiscal year

(475)

OthersClosing balance of retirement benefit obligation¥111,096(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¥83,842
825
808

8,028

(3,512)
48¥90,040(c) Reconciliation between closing balance of retirement benefit obligation and pension assets and net amount of liability/asset for
retirement benefits recognized in consolidated balance sheet
Millions of yen

Defined benefit obligation of funded severance plan
Plan asset¥82,668(90,040)(7,371)

Defined benefit obligation of unfunded severance plan

28,427

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

Liability for retirement benefits¥36,918

Asset for retirement benefits
Net amount of liability and asset for retirement benefits
recognized in consolidated balance sheet(15,862)¥21,056(d) Breakdown of retirement benefit expenses
Millions of yen

Service cost
Interest cost
Expected return on plan assets
Recognition of actuarial gains and losses
Amortization of past service cost
OthersTotal amount of retirement benefit expenses for defined
benefit plans
54 SUZUKI MOTOR CORPORATION¥6,024
2,199

(825)
527

(636)
(656)
¥6,633

Consolidated Financial Statements(e) Accumulated adjustment for retirement benefit
Breakdown of accumulated adjustment for retirement benefit recognized were as follows:
Millions of yen¥3,276

Unrecognized past service cost

2,742

Unrecognized actuarial gains and losses¥6,018Total(f) Plan assets
a. Major breakdown of pension assets
Portion of major components to total pension assets were as follows:

51.1%

Debt securities

38.0%

General account of life insurance companies

10.9%

OthersTotal

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
3

2.00%
0.82%

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

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

Opening balance of retirement benefit obligation
Cumulative effects of changes in accounting
Opening balance reflected changes in accounting
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¥111,096$ 924,494¥123,339$1,026,377

1,681

13,994

12,243

6,638
886

101,882
55,245
7,378(4,751)(39,542)

301

2,505

5,322

¥133,418

44,294$1,110,251

SUZUKI MOTOR CORPORATION 55

Consolidated Financial Statements(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¥90,040

1,000
454

5,905

Thousands of
US dollars$749,273

8,322
3,785

49,142(3,364)(27,993)¥94,487$786,285

451

3,755

(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¥95,065(94,487)
577

Thousands of
US dollars$791,090(786,285)
4,804

Defined benefit obligation of unfunded severance plan

38,353319,161

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

Liability for retirement benefits¥40,791$339,450¥38,930$323,965

Asset for retirement benefits
Net amount of liability and asset for retirement benefits
recognized in consolidated balance sheet(1,860)(15,484)(d) Breakdown of retirement benefit expenses
Millions of yen

Service cost
Interest cost
Expected return on plan assets
Recognition of actuarial gain and losses
Amortization of past service cost
OthersTotal amount of retirement benefit expenses for defined
benefit plans

Thousands of
US dollars¥6,638$55,245(1,000)(8,322)

1,681
992

13,994
8,262

117

981

46

384

¥8,477$70,546(e) Adjustment for retirement benefit
Breakdown of adjustment for retirement benefit recognized were as follows:
Millions of yen

Past service cost
Actuarial gains and losses
Total

Thousands of
US dollars¥(5,140)$(42,780)¥(4,524)$(37,650)

616

5,129

(f) Accumulated adjustment for retirement benefit
Breakdown of accumulated adjustment for retirement benefit recognized were as follows:
Millions of yen

Unrecognized past service cost
Unrecognized actuarial gains and losses
Total
56 SUZUKI MOTOR CORPORATION

Thousands of
US dollars¥(1,864)$(15,513)¥1,479$12,314

3,344

27,828

Consolidated Financial Statements(g) Plan assets
a. Major breakdown of pension assets
Portion of major components to total pension assets were as follows:
49.0%

Debt securities

37.9%

General account of life insurance companies

13.1%

OthersTotal

100.0%

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

1.12%
0.88%

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

NOTE 8: Income taxes

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

Millions of yen

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

2015

2014

2015

¥ 57,418¥ 59,105$ 477,811

37,25424,197201,359

20,876

14,265

12,25475,36282,757

3,579

310,017

39,548

118,71329,7873,367

627,134

212,078

217,910¥172,082¥162,980$1,431,991

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

¥(76,700)¥ (56,219)$(638,265)

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

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

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

(39,996)(3,450)(1,076)(87,038)¥ 85,043(54,930)

1,764,824(332,832)(28,713)(3,603)(8,959)(2,071)(67,138)¥ 95,841(724,296)$ 707,695

The differences between the statutory tax rate and the effective tax rate were summarized as follows:
2015
Statutory tax rate.....................................................................
Effect of change of tax rate................................................
Tax credit.............................................................................
Tax rate difference (consolidated overseas subsidiaries).
Others..................................................................................
Effective tax rate.....................................................................

2014
—

37.2%

—

(3.3%)

—

—

—

—

3.1%
(2.0%)
0.3%
35.3%* For the year ended 31 March 2015, notes have been omitted as the difference between the statutory tax rate and the effective tax rate
after adoption of tax effect accounting was less than 5% of the statutory tax rate.

SUZUKI MOTOR CORPORATION 57

Consolidated Financial Statements

NOTE 9: Research and development costs

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

Millions of yen

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

2015

2014

2015

¥125,896¥127,090$1,047,655

NOTE 10: Cash and cash equivalents

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

Millions of yen

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

2015

2014

2015

¥457,513¥358,851$3,807,223

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

685,647

612,489(192,888)(187,359)(18,012)

Time deposits with maturities of over three months..........
Bonds etc. with redemption period of over three months.

¥932,261

5,705,647(149,888)(73,370)(1,605,126)$7,757,854¥710,611

NOTE 11: Net assets

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

NOTE 12: Other comprehensive income

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

Millions of yen

2015

2014

2015

¥77,327¥73,280$ 643,480

Valuation difference on available-for-sale securities
Unrealized loss (gain) arising during the period...............
Reclassification adjustment of unrealized gain (loss)
through profit or loss...........................................................
Before tax effect..................................................................
Tax effect.............................................................................
Balance at the end of the period........................................

—

77,327(19,592)40—

73,320643,480(25,724)(163,043)¥57,734¥47,596$ 480,437¥ 965¥ (4,119)$

Deferred gains or losses on hedges
Unrealized loss (gain) arising during the period...............
Reclassification adjustment of unrealized gain (loss)
through profit or loss...........................................................
Before tax effect..................................................................
Tax effect.............................................................................
58 SUZUKI MOTOR CORPORATION

75

1,041

(453)

1,785
(2,333)
1,136

8,034
628

8,662

(3,777)

Consolidated Financial Statements587¥ (1,196)$ 4,884

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

¥ 46,774¥27,748$ 389,233

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

—

(192)

—

¥ 46,774¥27,555$ 389,233

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

¥ (5,176)¥—$ (43,072)

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

651

—

5,422

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

(4,524)—(37,650)

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

¥

Foreign currency translation adjustment

Balance at the end of the period
Adjustment for retirement benefit

1,518

Tax effect.............................................................................
Balance at the end of the period........................................

12,637—¥ (3,005)—$ (25,012)¥ 7,504$ 29,038¥

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

Unrealized loss (gain) arising during the period
Total other comprehensive income................................

3,489¥105,579¥81,459$ 878,581

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

Meeting of theBoard of Directors
held on 6 November 2014

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

Record date

31 March 2014

30 September 2014

Effective date

30 June 2014

28 November 2014

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

Record date

31 March 2015

Effective date

29 June 2015

SUZUKI MOTOR CORPORATION 59

Consolidated Financial Statements

NOTE 14: Stock option plan

The Company adopts stock option plan by using subscription rights to shares.
The plan was adopted at the Ordinary General Meeting of Shareholders and meeting of the Board of Directors held on 28 June 2012, 27
June 2013 and 27 June 2014 based on The Company Act of Japan.
The details of the plan were as follows:
1. Resolution date
28 June 2012
2. Category and number of people to whom stock options are granted
10 Directors of The Company (excluding Outside Directors)
6 Managing Officers who do not concurrently serve as Directors
3. Class of shares that are the subject of subscription rights to shares
Common stock of The Company
4. Number of shares
67,000 shares
5. Amount to be paid for subscription rights to shares
1 yen per 1 share
6. Period during which subscription rights to shares can be exercised
From 21 July 2012 to 20 July 2042
7. Terms of exercise of subscription rights to shares(1) A person who is allocated subscription rights to shares shall be able to exercise share subscription rights only up until
10th day (the next business day if the 10th day falls on a non-business day) from the day immediately following the dateof resignation as The Company’s Director as well as the Senior Managing Officer or Managing Officer without the role of
Director being served concurrently.
(2) If a person who is allocated subscription rights to shares was dead, heir may exercise the rights.
8. Matters relating to assignment of subscription rights to shares
The acquisition of subscription rights to shares by assignment shall require the approval of the Board of Directors of The
Company.
9. Matters relating to subrogation payment
None
1. Resolution date
27 June 2013
2. Category and number of people to whom stock options are granted
7 Directors of The Company (excluding Outside Director)
10 Senior Managing Officers and Managing Officers who do not concurrently serve as Directors
3. Class of shares that are the subject of subscription rights to shares
Same to the plan adopted at 28 June 2012
4. Number of shares
42,000 shares
5. Amount to be paid for subscription rights to shares
Same to the plan adopted at 28 June 2012
6. Period during which subscription rights to shares can be exercised
From 20 July 2013 to 19 July 2043
7. Terms of exercise of subscription rights to shares
Same to the plan adopted at 28 June 2012
8. Matters relating to assignment of subscription rights to shares
Same to the plan adopted at 28 June 2012
9. Matters relating to subrogation payment
Same to the plan adopted at 28 June 2012

60 SUZUKI MOTOR CORPORATION

Consolidated Financial Statements

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

NOTE 15: Contingent liabilities

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

Millions of yen

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

¥10,425

2014

2015

¥8,277$86,756

NOTE 16: Segment Information

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

Main products and services

Motorcycle

Motorcycles, All-terrain vehicles

Automobile

Minivehicles, Sub-compact vehicles, Standard-sized vehicles

Marine and Power products, etc.

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

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

SUZUKI MOTOR CORPORATION 61

Consolidated Financial Statements

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

2015

Motorcycle

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

Automobile

Marine & Powerproducts, etc.

Adjustment

Consolidated¥——¥3,015,461
179,424¥250,485(675)¥2,701,942
171,827¥63,033
8,272
45,1591,111,348

8,504
639
—

124,686
1,757
969

1,186
122
—

—
—
—

134,377
2,519
969

15,08945,346

82—

60,5198,356

184,785

1,314—

194,457

203,256

1,893,036

3,252,800

Millions of yen

2014

Motorcycle

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

Automobile

Marine & Powerproducts, etc.

Adjustment

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

222,413

1,649,071

42,668959,9212,874,074

7,268
453
128

109,024
1,609
900

896
101
0

—
—
—

117,188
2,164
1,029

15,33540,27687—

55,69922,847

189,604

1,167—

213,619

Thousands of US dollars

2015

Motorcycle

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

62 SUZUKI MOTOR CORPORATION

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

Marine & Powerproducts, etc.

$ 524,537
68,839$15,752,987

70,771

1,037,582

9,874

1,017
—

—
—

125,569

377,356

69,5401,537,702

14,625
8,067

Consolidated— $25,093,298—
1,493,091

1,691,409
5,324—

375,796

Adjustment

9,248,132

27,068,326—

1,118,228

686—

503,612

10,942—

1,618,185

20,9688,067

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

2015
Japan

Europe

Asia

Other
areas

Eliminations

Consolidated¥158,151¥¥3,015,461

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

¥1,317,659
447,311

1,764,970

90,718¥306,156
129,982

436,139

5,116¥1,233,494
72,736

1,029

1,306,230(651,059)

159,181

81,607—(651,059)

2,620

(637)

—

3,015,461

179,424

Millions of yen

2014
Japan

Europe

Asia

Other
areas

Net sales to external customers....

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

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

392,284

16,00057,185

1,701,667

376,466

134,513

4,154

Eliminations

Consolidated¥—¥2,938,314

679(466,149)—

1,175,355

150,975(466,149)

2,938,314

59,419241(10,582)

187,747

Net Sales:

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

Thousands of US dollars

2015
Japan

Europe

Other
areas

Asia

Eliminations

Consolidated

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

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

1,081,657

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

3,722,322

14,687,283

754,915

3,629,350

42,573605,276

10,869,854

679,102$1,316,066 $
8,566

1,324,632

21,802— $25,093,298(5,417,822)—(5,302)

1,493,091(5,417,822) 25,093,298* “Other areas” consists principally of North America, Oceania and South America.

SUZUKI MOTOR CORPORATION 63

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

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

Japan

India

Others¥1,094,611¥787,560¥1,133,289

Consolidated¥3,015,461

Millions of yen

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

Japan

India

Others¥1,132,732¥638,720¥1,166,861

Consolidated¥2,938,314

Thousands of US dollars

2015
Japan

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

64 SUZUKI MOTOR CORPORATION$9,108,860

India$6,553,717

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

Consolidated Financial Statements

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

Seimei Audit Corporation
Tokyo, Japan
26 June 2015

SUZUKI MOTOR CORPORATION 65

Company Outline
1. Company NameSUZUKI MOTOR CORPORATION

2. Date of Incorporation

March 1920
June 1954
October 1990

3. Head Office

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

4. Main Products

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

5. Fiscal Year-End

31 March

6. Public Accounting Firm

Seimei Audit Corporation

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

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

Total number of authorized shares

1,500 million

Total number of shares issued

561,047,304

Number of shareholders

33,311

Stock Listing

Tokyo Stock Exchange

Securities Code7269

Ordinary General Meeting of Shareholders

June

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

Shareholders’ Register Manager

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

Shareholding Ratio

Volkswagen AG

111,610

19.9

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

22,8694.1

Tokio Marine & Nichido Fire Insurance Co., Ltd.

17,961

3.2

Japan Trustee Services Bank, Ltd. (Trust Account)

16,485

2.9

The Bank of Tokyo-Mitsubishi UFJ, Ltd.

16,0002.9

The Shizuoka Bank, Ltd.

14,500

2.6

Resona Bank, Ltd.

13,000

2.3

JP Morgan Chase Bank 380055

9,429

1.7

Sompo Japan Nipponkoa Insurance Inc.

7,761

1.4

Nippon Steel & Sumitomo Metal Corporation

7,759

1.4

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

66 SUZUKI MOTOR CORPORATION

Company Outline

Suzuki Group

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

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

[Marketing Subsidiaries]

54 directly managed domestic marketing companies(2) Major Overseas Subsidiaries[Marketing Subsidiaries]

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

[AMERICA]
USA
USA
CanadaMexicoColombia

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

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

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

[OCEANIA]
Australia
New Zealand

Suzuki Australia Pty. Ltd.
Suzuki New Zealand Ltd.

[AFRICA]South Africa

Suzuki Auto South Africa (Pty.) Ltd.

SUZUKI MOTOR CORPORATION 67

MEMO

68 SUZUKI MOTOR CORPORATION

434 (215 + 4 + 215) x 280 mm

2015

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

ANNUAL REPORT 2015
Printed in Japan