SUZUKI MOTOR CORPORATION

Transcription

1 Autumn, 2018 SUZUKI MOTOR CORPORATION New HUSTLER Wanderer Debut!

2 Agenda P 2 1. Company Outline 2. Mid-Term Management Plan 3. Car Business - India 4. Car Business - other markets 5. Environment/Safety Technologies (Appendix) FY2018 1H Summary

3 P 3 Agenda 1. Company Outline 2. Mid-Term Management Plan 3. Car Business - India 4. Car Business Other markets 5. Environment/Safety Technologies (Appendix) FY2018 1H Summary

4 Suzuki historical timeline P Suzuki Loom Works established 1920 Suzuki Loom Manufacturing Co. incorporated 1952 Started motorcycle business 1954 Name changed to Suzuki Motor Co., Ltd 1955 Started Automobile business 1965 Started Marine business 1968 First overseas motorcycle production (Thailand) 1975 First overseas automobile production (Pakistan) 1979 ALTO mini-vehicle debuts 1981 Business tie-up with General Motors 1983 Start of automobile production at Maruti Suzuki 1990 Name changed to Suzuki Motor Corporation 1993 WAGON R mini-vehicle debuts 2004 Launch of global strategic model, SWIFT 2013 Accumulated automobile sales reached 50 million 2015 Named new management and mid-term management plan SUZUKI NEXT 100 Suzuki Loom Works, circa 1909 Place of foundation Nakajima-cho, Hamamatsu

5 Major production facilities P 5 Production in 20 countries/regions worldwide, mainly in Asia Hungary(Automobiles) China (Automobiles/ Motorcycles) Egypt (Automobiles) Pakistan (Automobiles/ Motorcycles) India (Automobiles/ Motorcycles) Indonesia (Automobiles/ Motorcycles) U.S.(ATV) Japan (Automobiles/Motorcycles/ Marine) Thailand (Automobiles/ Motorcycles/ Marine 28 production sites in 20 countries/regions Vietnam (Automobiles/Motorcycles) Philippines (Motorcycles) Colombia (Motorcycles) Brazil (Automobiles/ Motorcycles)

6 Progress of consolidated sales P 6 Sales in Japan keeping 1.1 trillion yen level Overseas sales growing to reach 2.6 trillion yen level Record high sales in FY2017 after 10 years (billion Yen) 3, , ,502.4 Domestic Sales Overseas sales Domestic 3, , , , , , , , , , , , , , , ,040.9 Overseas 2, , , , , , , , , , , ,132.0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 forecast

7 Progress of net income P 7 (billion yen) 200 Constant profit for more than 60 years: solid management Stayed profitable through economic crisis of 2008 FY2017 result: Obtained majority of Indian and Indonesian production JVs 1993 Introduction of WAGON R 1979 Introduction of ALTO 2004 Introduction of SWIFT Economic crisis Constantly profitable since 1950 FY2018 forecast Note Figures from FY1950 to FY1976 are non-consolidated figures, FY1977 and onwards are consolidated figures

8 (1,000 units) 3,000 2,500 2,000 1,500 Progress of global car sales Sales volume increase globally 2,643 2,664 2,709 2, ,867 2,861 2, ,133 1,006 1,051 1,054 1,171 1, , ,445 1,654 Others Asia (excl.india) India 3, ,173 P 8 Others Asia (incl.india) 1, North America Europe 280 Japan FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 forecast Europe Japan

9 SDGs and CSR activities of the Suzuki Group P 9 (ENVIRONMENT) Improvement in fuel efficiency, Development of next-generation vehicles, Reduction of substances of concern and use of their alternatives, Purification of plant effluent, Thorough water-saving at plants and offices, Control of air pollution, Promotion of 3Rs, Promotion of green procurement, Life Cycle Assessment. (GOVERNANCE) Efforts for compliance (SOCIAL) Welfare vehicles, A range of products equipped with Suzuki Safety Support, Traffic safety Suzuki Foundation, Suzuki Education and Culture Foundation, Educational support activity, Suzuki Plaza, Activities by domestic plants and distributors, and overseas group companies, Diversity, Actions to promote participation by women, With our business partners, Improving corporate value

10 P 10 SWIFT All-new SWIFT compact car A global compact car representing Suzuki Brand Agenda 1. Company Outline 2. Mid-Term Management Plan 3. Car Business - India 4. Car Business Other markets 5. Environment/Safety Technologies (Appendix) FY2018 1H Summary

11 3,181 3, % 6.1% 2,861 2,918 Mid-Term Management Plan Key targets achieved in FY17 1,501 1,367 1,580 3,757 3,700 3,224 3,400 P 11 In June 2015, Suzuki announced SUZUKI NEXT 100, a 5-year plan for FY Key targets (Net sales, Operating profit ratio and ROE) achieved in FY % 8.4% 17.9% 10.0% Consolidated sales (bln yen) ROE(%) Operating profit(%) Sales units (1,000) Target 2, 年度 16 年度 17 年度 19 年度目標 Automobiles Net Sales 10.0% 7.0% Motorcycles

12 Mid-Term Management Plan Shareholder return Dividend payout ratio P 12 FY17 Dividend : 74 yen Dividend payout ratio 15.1% in FY17 = Target 15% or more(fy19) Target set at 15% or more, placing priority on growth investment. Purchase of own shares totaling to 120 million shares (460.3 billion Yen) Recovery of equity capital ratio (38.8% as of Mar. 2018) is priority issue FY16 FY17 Forecast Annual payout per share 44 yen 74 yen 74 yen Payout ratio 12.1% 15.1% 15.2% Payout ratio excluding gains from portfolio securities Increase for 8 consecutive periods Year end Interim (15.2%) 44 yen 32 yen 24 yen 27 yen 27 yen 7 yen 7 yen 8 yen 10 yen 14 yen 17 yen 12 yen 13 yen 15 yen 18 yen 17 yen 5 yen 6 yen 7 yen 8 yen 10 yen 10 yen 15 yen 17 yen 74 yen 74 yen 44 yen 30 yen 37 yen 37 yen FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 Plan Forecast

13 Mid-Term Management Plan Team Suzuki Corporate Governance enhancement P 13 Mid-Term Management Plan Chairman President pre FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Mid-Term Management Target (FY11~FY14) Osamu Suzuki Chairman and President between 2008 and 2015 New Mid-Term Management Plan SUZUKI NEXT 100(FY15~ FY19) Toshihiro Suzuki Board of Directors Vision Term Supervision Execution Outside directors, total directors Supporting div. Seats Committees Corporate mission Code of conduct Term of board members shortened to 1 year from 2002 Introduced executive officers system in 2006 Appointed outside directors from 2012, 2 2 outside directors outside directors among 9 total among 8 total Corporate Governance Dept. Secretariat of Audit&Supervisory Board Not more than 30 from 1989 Drafted "Mission Statement" in 1962 Drafted Suzuki Activity Charter, Suzuki employees Activity Charter in 2003 Reduced to 15 Advisory Committee on Personnel and Remuneration, etc. Corporate Governance Committee Suzuki Group Code of Conduct

14 Mid-Term Management Plan Capital Efficiency Policy shareholding guidelines P 14 Basic principles Objective sustainable growth, increase enterprise value in the mid and long term Standard following criteria is applied Create business opportunity Business partnership Establish, maintain or strengthen stable transaction and cooperation Exercise of voting rights Decision is to be made by respecting management policy of the investment company and in view of our mid-and long-term enterprise value Recent disposals Disposal of shares held by Suzuki Disposal of Suzuki shares Date thousand shares % Remarks Date thousand shares % Remarks VW , % Profit all shares purchased , % 36.7bln by Suzuki Fuji Heavy , % Profit all shares sold to , % Industries 46.8bln market note: percentage figure representing shareholding ratio as of date of disposal

15 Mid-Term Management Plan Stable Management Base Motorcycle business P 15 Return to profit through Selection and Concentration Concentrate on 150cc and above, Backbone and Sport bikes Align model family image (Ex) GSX-R family, V-Strom family Restructuring plans (Plant shutdown, layoffs, reduction of fixed costs) implemented in FY16 Develop variants from single basic powertrain (250cc model variants) Global models ASEAN models New models in 2017 (150cc model variants) GW250 GSX250R V-Strom250 GIXXER SF INTRUDER Recorded first multi-billion operational profit (4.6 billion yen) in FY2017 after 10 periods since 2007

16 Mid-Term Management Plan Strengthening of Manufacturing Creative Products P 16 Automobiles SWIFT wins RJC Car of the year for 3 generations HUSTLER won the same in 2015, ALTO in 2016 Top 3 picks among World Urban Car with SWIFT in 2018, and IGNIS in 2017 Brand of the Year in South Africa for 2 nd consecutive year in 2018 Motorcycles 11 new models introduced in 2017 including GSX-R family and V-Strom family. GSX-R150 was awarded The Best Sport Bike at the 2018 IIMS (Jakarta Motor Show) in May 2018 GSX-R150 Marine New flagship outboard motor DF350A Innovation Award at 2017 IBEX Show (Highest award count of 8 times for 4-stroke outboards) Example of 4x DF350A (350 4=1,400ps)

17 Mid-Term Management Plan Strengthening of Manufacturing Optimal Global Production P 17 Partial review of local production and distribution Disadvantages of local production Increased production cost due to multiple locations Duplicated jigs and facilities Optimal global production & procurement systems Local model-local production Part of Indian export production shifted to ASEAN Designate production site by model Model sharing among ASEAN nations SWIFT production shifted from Europe to Japan Effect Indian production for ASEAN Shift to production in ASEAN Allocate production capacity for Indian market needs Improvement in profit Improve occupancy rate in ASEAN factories in Japan, Europe and Production of SWIFT in Europe Japan Asia Improve occupancy rate in Sagara Plant Improve efficiency of Hungarian plant by concentrating in production of a single platform

18 Drafting new Management Plan P 18 Automobile sector faces a drastic change Illustrate the future of years in a long term perspective instead of extension from the present, and plan backwards Indian market in 2030 Drafting new Management Plan on a long-term perspective Indian market has possibility to grow to a size of 10 million in circa 2030 Assuming the current 50% share to remain unchanged, sales of Suzuki shall be 5 million units Assuming the sales in other markets at 2 million units, total annual sales volume shall become 7 million units (theoretically). A challenge towards the future Unprecedented scale, more than twice the existing volume Effectively allocate management resources of people, goods and money by changing viewpoint Immediate actions required, to confront this challenge towards the future Drafting new management plan considering the above Backcast (10,000 units) FY

19 P 19 Compact SUV VITARA BREZZA (India) Strong and dynamic exterior Wide range of body colors including two tone variant Developed to meet the requirement and needs in the Indian market Agenda 1. Company Outline 2. Mid-Term Management Plan 3. Car Business - India 4. Car Business Other markets 5. Environment/Safety Technologies (Appendix) FY2018 1H Summary

20 Maruti Suzuki Financial Performance P 20 6th consecutive net income increase in FY2017 Record-high profit Record-high profit in 2Q FY2018 Concerns on weak Rupee, hike in interest rate and fuel prices Maruti Suzuki financial performance Sales (Billion Rs.) FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2017 FY2018 Figures post FY15 are based on Ind-AS (Indian IFRS) <1H YoY> 1H Results Net income (Billion Rs.)

21 Progress of Car Sales in India P 21 1H FY2018 resulted in increase over previous year, however, 2Q results saw decrease YoY due to high sales in July 2017 resulting from GST introduction and lower sales in August 2018 due to floods in Kerala Concerns over economic deterioration from rising interest rates, rising fuel prices, automobile insurance regulations etc. <1H YoY> 1,000 units 45% 38% 40% Wholesale of Maruti and market total Maruti Others Share 42% 45% 2,521 2,628 2,658 2,504 2,601 1,388 1,622 1,607 1,450 1,430 47% 47% 2,790 1,484 3,047 1,603 3,288 1,644 1,133 1,006 1,051 1,054 1,171 1,305 1,444 1,643 50% 50% 52% 1,631 1, FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY17 FY18 Wholesale volume excluding commercial vehicles

22 2,000 41% 36% Maruti Suzuki Sales of automobiles by model type Change in model mix in the domestic market Minicar fell below 30%, proportion of compact and utility grew rapidly 33% 29% 26% 27% <1H YoY> 24% P 22 (1,000 units) 1, ,500 1,444 1, , , , FY13 FY14 FY15 FY16 FY17 FY17 FY18 Wholesales figures excluding commercial vehicles Vans Utility vehicles Mid-Size Super Compact Compact Mini

23 Utility vehicles Maruti Suzuki Models sold in India Popular cars from the line up NEW Mid-Size NEW P 23 ERTIGA (1400ccGE,1300ccDE) S-CROSS (1300ccDE) VITARA BREZZA (1300ccDE) CIAZ (1500ccGE, 1300ccDE) Mini Compact ALTO 800 (800ccGE) NEW SWIFT (1200ccGE, 1300ccDE) CELERIO (1000ccGE, 800ccDE) WAGON R (1000ccGE) IGNIS (1200ccGE) BALENO (1200ccGE,1300ccDE) DZIRE (1200ccGE, 1300ccDE)

24 Towards 2 million units sales in India P 24 Strengthen Dealer Network 4 sales channels Maruti Suzuki Arena(rebranded existing dealers) Rural (small size dealerships, circuit service) Urban (Dealer site to be provided by Maruti) 2,121 dealerships as of end Mar NEXA Premium car dealership established in Jul dealerships as of end Mar Commercial SUPER CARRY SUPERCARRY pickups 190 dealerships as of end Mar True Value New concept pre-owned car dealerships 1,243 dealerships as of end Mar. 2018

25 Towards 2 million units sales in India Strengthen Production Base P 25 Start-up of Gujarat Plant Gujarat Plant no.1 began its operations (Feb. 2017) Plant no.2 under construction with planned operation from Jan Plant no.3 planned (SOP April 2020) Total 750,000 units p.a. Production capacity in India (2 shifts, 1,000 units) 750 2, , , Manesar Plant Gujarat plant No. 3 No. 2 No Existing +Plant 1 +Plant 2 (17.2) (19.1) Gurgaon Plant Production of Lithium-ion batteries in India JV with Toshiba and Denso Constructed in supplier park next to Gujarat Plant Penetration of Hybrid vehicles will contribute to environmental issues in India.

26 Expansion of production capacity and development of EV in India P 26 Ceremonies for opening of Gujarat Plant and cornerstone laying of lithium-ion battery plant Ceremony held in Sep.2017 among the events during PM Abe s visit to India Participation of PM Abe, PM Modi and 5,000 government and business people Introduction of EVs in India In November 2017, Suzuki announced introduction of EV model in India around Started field testing of 50 prototype vehicles from October 2018 Feedback will be incorporated in EV production Prototype EV Suzuki is committed to Indian Government s Make in India and Skill India initiative, and contribute to growth of the Indian automotive industry

27 Cooperation with Toyota P 27 Environmental technologies Safety technologies Information technologies Mutual supply of products and components Supply of Suzuki developed EVs to Toyota in India Mutual supply of products such as Hybrids in India Toyota is to provide technical support Toyota model (incl. HEV) Development of compact, ultrahigh-efficiency powertrain Production of Suzuki vehicles in Toyota plant in India Supply of Suzuki models to African markets Denso Corporation and Toyota to provide Suzuki with technological support Sale in India through each of the Toyota and Suzuki brand network Toyota and Suzuki, employing each of the Toyota and Suzuki sales networks to sell such vehicles in Africa Continue discussions with Toyota, deepen cooperation

28 P 28 Agenda VITARA Carries forward the SUV excellence that Suzuki has nurtured over the years Suzuki s latest compact SUV that embodies advances that meet diverse contemporary needs. Advanced safety technologies and outstanding fuel economy. 1. Company Outline 2. Mid-Term Management Plan 3. Car Business - India 4. Car Business Other markets 5. Environment/Safety Technologies (Appendix) FY2018 1H Summary

29 Japanese Domestic Market P 29 (1,000 units) % New models SPACIA and XBEE contributed Continued increase in 1H FY2018 due to contribution of SPACIA and XBEE launched in FY2017. Introduced new JIMNY and JIMNY SIERRA in July Sales of Mini-cars and Compact Cars in Japan Mini Market share of mini-vehicles 31% 31% 30% 30% 31% 29% 30% 30% 31% <1H YoY> Compact FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY17 FY18

30 Indonesia P 30 Contribution of commercial vehicles Owing to the contribution of commercial vehicles, 1H results saw 107% YoY (memo) Export of ERTIGA began in September Retail Sales in Indonesian Market (figures pre FY12 are wholesales) (1,000 units) 150 Share 9.4% 12.2% 10.3% 13.3% 12.9% 11.6% 8.6% <1H YoY> 10.3% 10.5% 10.4% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY17 FY18

31 Thailand P 31 Recoil from special demand now normalized Market remained low after eco-car special demand in FY12-13, but started to recover. 1H FY18 saw demand for replacement as well as introduction of fully revamped SWIFT model, resulting in 120% CPY. Retail Sales in Thailand (1,000 units) Share 0.7% 2.1% 1.2% 3.5% 2.3% <1H YoY> 2.7% 2.9% 2.9% 2.9% 2.8% 25 0 Production start Mar FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY17 FY18

32 Thailand and Indonesia P 32 Mutual Product Supply Supplement Lineup Thai and Indonesian plants form single production concept Both plants supplement product with each other Improve production efficiency per model / risk distribution SWIFT Thailand ERTIGA CELERIO APV CIAZ Indonesia MEGA CARRY

33 Pakistan P 33 Suzuki secures majority market share Pakistan is the country where Suzuki first started overseas production (1975) The name is widely penetrated, as taxi are called SUZUKI Despite weak Rupees and effect of tax revision, achieved 107% CPY in 1H FY2018 Sales in Pakistan (1,000 units) 150 Share 54% 58% 59% 54% 55% 60% 53% 55% <1H YoY> 54% 53% 100 Special taxi demand FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY17 FY18

34 Europe P 34 SWIFT, and IGNIS contributed Despite contribution of SWIFT, IGNIS, results in 1H FY2018 were previous year level due to temporary reduction of production in Hungary (1,000 units) Share % Sales in 5 major European markets* 1.1% 1.0% 1.0% 1.0% 1.0% 1.0% <1H YoY> 1.3% 1.3% 1.2% FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY17 FY18 Total of retail sales in UK, Germany, France, Italy and Spain

35 P 35 NEW Hybrid system (Equipped on SOLIO models) A Suzuki unique parallel hybrid system combining Motor Generator Unit (MGU) with Auto Gear Shift (AGS) MGU supplements traction during gear shift, enabling smooth acceleration. 2 Manual transmission with automatic gearshift and clutch operation by electro hydraulic actuator Agenda 1. Company Outline 2. New Mid-Term Management Plan 3. Car Business - India 4. Car Business Other markets 5. Environment/Safety Technologies (Appendix) FY2018 1H Summary

36 Suzuki s vision on Sustainability P 36 Compact cars make significant contribution to the environment than larger cars Improvement of fuel efficiency of compact cars widely accepted in the emerging countries with rapid population growth, is the key to environmental issue. 1, Suzuki global (1,000 units) 668 automobile sales: 3,224 thousand units Small cars for a big future 27 Wide use of fuel efficient compact cars solution to global environmental issue Less fuel consumption at the time of use, as well as less environmental load in raw material and production, and less use of parking space, less road load, etc.

37 Sustainable Technologies P 37 Improvement of internal combustion engines 0.8L 2-cylinder diesel engine DDiS Engine Electrification IGNIS SOLIO WAGON R Lightweight New Lightweight Platform Introduction with ALTO (weight reduction of 60kg) New SWIFT (weight reduction of 120kg) ALTO SWIFT

38 Sales of Suzuki hybrid cars P 38 Sales of hybrid cars in Japan in FY17 accounted for 52% Hybrid cars account for 14% of global sales System configuration of WAGON R mild hybrid system ISG (Generator with motor function) Sales of automobiles with hybrid systems (Thousand units) FY15 global sales FY16 global sales FY17 global sales Hybrids % Hybrids % Hybrids % Japan % % % India 1, % 1, % 1, % Others % % % Total 2, % 2, % 3, % Note: Hybrid cars include mild hybrid, S-enecharge and SHVS. Hybrid sales in Others are export from Japan and India Exclusive lithium ion battery

39 Suzuki s Advanced Safety Technologies SUZUKI SAFETY SUPPORT Suzuki s Advanced Safety Technologies Series of models with highest ASV++ rank among the 2016 JNCAP Advanced Safety Technology Assessment were introduced. P 39 IGNIS SPACIA SOLIO HUSTLER SWIFT WAGON R On May , Compact car SWIFT was awarded the highest rating of Five Star in the JNCAP Collision Safety Performance Assessment. SWIFT HYBRID RS Japanese domestic model New SWIFT and WAGON R equips Dual Sensor Brake Support using combined system of monocular camera and laser sensor. DSBS Lane departure warning Preceding vehicle start notice Startup collision prevention Weaving alert function High beam assist

40 P 40 XBEE A new concept compact crossover wagon XBEE launched in Japan in December 2017 Combination of utility of a wagon with Fun element of an SUV Equipped with Suzuki Safety Support Preventive safety technologies Rated as Support car S wide in the Safety support car ratings. Agenda 1. Company Outline 2. New Mid-Term Management Plan 3. Car Business - India 4. Car Business Other markets 5. Environment/Safety Technologies (Appendix) FY2018 1H Summary

41 Consolidated: Financial Summary P 41 (Billions of yen) Net Sales FY2017 Change ('17/4-9) Ratio 1, , % FY2018 ('18/4-9) Japan % Suzuki brand % OEM % Overseas 1, , % Operating Income Ordinary Income (Margin) (Margin) (10.3%) (12.0%) (9.4%) (10.2%) % +24.3% Net income attributable to owners of the parent (Margin) Higher earnings on higher sales, the highest ever each income * (7.1%) (5.7%) * Record high results since disclosure of 2Q results (2Q FY1998) %

42 Historical chart of quarterly results P Q results saw sharp decline in sales and profit compared with 1Q, and profit also declined YoY Historical chart of quarterly results (bln yen) 1, Sales Operating profit , Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q 1Q 2Q FY16 FY17 FY18 0

43 +20 History of quarterly foreign exchange effect Impact of currency depreciation in emerging countries such as India, Indonesia and Pakistan Quarterly exchange effect YoY on operating profit (bln yen) P Q 2Q 3Q 4Q 1Q 2Q FY17 FY18

44 Consolidated: Net Sales P 44 (Billions of yen) FY2018 ('18/4-9) Increase in all segments, record-high * in domestic, overseas and consolidated Automobile Motorcycle Marine, etc. Total FY2017 ('17/4-9) Change FY2018 ('18/4-9) FY2017 ('17/4-9) Change FY2018 ('18/4-9) FY2017 ('17/4-9) Change FY2018 ('18/4-9) FY2017 ('17/4-9) Change of which effect of ForEX rates conversion Japan total Suzuki brand OEM Overseas total 1, , , , Europe N. America Asia India Others Others Grand 1, , , , total of which effect of ForEX rates conversion Note: North America United States and Canada, Automobile in North America sales of parts and accessories *The highest ever 1H consolidated results

45 Consolidated:Operating Results by Segment P 45 Record-high profit from automobile, Marine, Japan, Europe and Asian Business* Results by Business Segment Results by Geographical Areas FY18 FY17 Change FY18 FY17 Change ('18/4-9) ('17/4-9) % ('18/4-9) ('17/4-9) % Motorcycles Automobiles Marine & Power Prod. Total Net Sales 1, , % Net Sales 1, % Operating Operating Income % Income % (%) (10.5%) (9.7%) (%) (8.5%) (7.7%) Net Sales % Net Sales % Operating Income % Operating Income % (%) (3.2%) (3.0%) (%) (3.3%) (2.9%) Net Sales % Net Sales % Operating Operating Income % Income % (%) (21.4%) (17.9%) (%) (9.7%) (9.7%) Net Sales 1, , % Net Sales % Operating Income % Operating Income % (%) (10.3%) (9.4%) (%) (3.9%) (2.7%) Automobiles Motorcycles Marine & Power Prod. Total Segmentwise results for 1H. Highest ever since disclosing segmentwise results

46 Consolidated: Foreign Exchange Rates, Capital Expenditure, Depreciation Expenses and R&D Expenses FY18 ('18/4-9) FY17 ('17/4-9) US Dollar 110 yen 111 yen -1 yen -0.2bln yen Euro 130 yen 126 yen +4 yen +2.2 bln yen Indian Rupee 1.62 yen 1.74 yen yen -10.5bln yen Indonesian Rupiah 0.78 yen 0.84 yen yen -1.5bln yen Thai Baht 3.40 yen 3.28 yen yen -0.3bln yen Pakistan Rupee 0.92 yen 1.06 yen yen -2.2bln yen Others - Total bln yen * -14.2bln yen Note: Indonesian Rupiah rate is yen per 100 Rupiah *Mex. Peso +0.9bln yen, Russian Rubre 0.5bln yen, etc Change Effect of ForEX in operating income FY18 FY17 ('18/4-9) ('17/4-9) Change (Non-consolidated) 25.7bln yen 21.5bln yen +4.2bln yen (Subsidiaries) 106.3bln yen 52.0bln yen +54.3bln yen Capital Expenditures 132.0bln yen 73.5bln yen +58.5bln yen Depreciation Expenses 64.2bln yen 74.3bln yen -10.1bln yen R&D Expenses 71.8bln yen 65.4bln yen +6.4bln yen P 46

47 Consolidated: Forecasts for FY18 P 47 Full Year Forecast FY17 Results Change Forecast FY17 Results Change Net sales 3, , Capital Expenditures Operating income Depreciation Expenses (Margin) (9.2%) (10.0%) R&D Expenses Ordinary income (Margin) (10.3%) (10.2%) Net income* (Margin) (5.8%) (5.7%) Factors of Change in Operating Income Factors of Change Effect of ForEX rates Increase of R&D expenses Increase of various expenses Change in sales, model mix Cost reduction Total H results, sales and currency outlook incorporated Full Year *Net income attributable to owners of the parent ForEX Rates and Effects Full Year Effect of ForEX rates in operating income Forecast FY17 Results Change U.S. Dollar 108 yen 111 yen -3.0 yen -2.4 Euro 130 yen 130 yen ±0.0 yen +0.3 Indian Rupee 1.56 yen 1.73 yen yen Indonesian Rupiah * 0.77 yen 0.83 yen yen -2.4 Thai Baht 3.35 yen 3.36 yen yen +0.0 *Indonesian Rupiah rate is yen per 100 Rupiah Others Effect of ForEX rates total (Billions of yen)

48 Production and Sales: 1Q FY17 P 48 (1000 units) Record-high automobile production and sales * FY18 Production FY17 ('18/4-9) ('17/4-9) Change % ('18/4-6) ('17/4-6) Change % <Automobile> Japan % % Europe % % Asia 1,175 1, % 1,119 1, % (India) (988) (869) (+119) (+13.6%) (919) (826) (+93) (+11.3%) Others % % Total 1,752 1, % 1,699 1, % <Motorcycles> Japan % % Europe % N. America % % Asia % % Others % % Total % % *The highest ever since disclosing global products and sales FY18 Sales FY17

49 (Thousand units) Forecast Production and sales volume: Full Year Forecasts Upward revision for both automobiles and motorcycles Production FY17 Results Changes from initial Forecast Sales FY17 Results (FY18) (FY17) Change Ratio outlook (FY18) (FY17) Change Ratio P 49 Changes from initial outlook <Automobile> Japan 1, % % +22 Europe % % ±0 Asia 2,292 2, % +35 2,173 2, % +16 Others % % +1 Total 3,478 3, % +65 3,338 3, % +39 <Motorcycle> Japan % % -1 Europe % -2 N.America % ± % -2 Asia 1,545 1, % +49 1,398 1, % +81 Others % % -14 Total 1,721 1, % +36 1,708 1, % +62

50 Status of Convertible Bonds P 50 Sharp rise in conversion requests due to stock price hike in August 200 billion yen CB issued in Apr. 2016(5yr: 100 billion, 7yr: 100 billion) Conversion requests reflecting stock price hike in August. 20 bin outstanding as of end Sept. Effect of scheme Controlling dilution Outstanding CB amount Issued shares Treasury shares 180 bln yen and 19 thousand shares were paid out by end Sep. conversion controlled below half of ordinary CB (44 mil shares) Increase of Issued shares excl. treasury shares result in slight reduction in EPS, but does not affect ROE bln yen bln yen 491 million 491 million 491 million 49 million 49 million 30 million Issued shares excl. Treasury shares 442 million 442 million 461 million 20.0 bln yen As of end Mar Jun Sep

51 Autumn, 2018 SUZUKI MOTOR CORPORATION KATANA (COLOGNE INTERMOT)

52 Caution with respect to Forward-Looking Statements P 52 The forward-looking statements mentioned in this presentation are based on currently available information and assumptions, contain risks and uncertainty and do not constitute guarantees of future achievement. Please note that the future results may greatly vary by the changes of various factors. Those factors, which may influence the future results, include economic conditions and the trend of demand in major markets and the fluctuations of foreign exchange rates (mainly U.S. dollar/yen rate, Euro/Yen rate, Indian Rupee/Yen rate).