SUZUKI MOTOR CORPORATION Spring, 2018
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) FY2017 Full Year Summary
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) FY2017 Full Year Summary
Suzuki historical timeline P 4 1909 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 Loom Works, circa 1909 Place of foundation Nakajima-cho, Hamamatsu
Major production facilities P 5 Production in 19 countries worldwide, mainly in Asia Hungary(Automobiles) China (Automobiles/ Motorcycles) Egypt (Automobiles) Pakistan (Automobiles/ Motorcycles) India (Automobiles/ Motorcycles) Indonesia (Automobiles/ Motorcycles) 27 production sites in 19 countries U.S.(ATV) Japan Automobiles/Motorcycles/ Marine) Vietnam (Automobiles/Motorcycles) Philippines (Motorcycles) Thailand (Automobiles/ Motorcycles/ Marine Colombia (Motorcycles) Brazil (Automobiles/ Motorcycles)
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 Aim for record renewal in FY2017 after 10 years (billion Yen) 3,757.2 3,800.0 3,502.4 Domestic Sales Overseas sales Domestic 3,180.7 3,169.5 3,004.8 3,015.5 1,116.7 1,110.0 981.4 2,938.3 2,469.1 2,608.2 2,512.2 2,578.3 1,047.9 1,037.5 965.5 952.6 937.4 1,132.7 1,094.6 986.8 1,040.9 Overseas 2,521.0 2,640.5 2,690.0 2,039.3 1,516.5 1,670.8 1,525.4 1,537.4 1,805.6 1,920.9 2,132.8 2,132.0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 forecast
Progress of net income P 7 Constant profit for more than 60 years: solid management Stayed profitable through economic crisis of 2008 (billion yen) FY2017 result: 215.7 200 150 100 50 2002 Obtained majority of Indian and Indonesian production JVs 1993 Introduction of WAGON R 1979 Introduction of ALTO 2004 Introduction of SWIFT 0 2008 Economic crisis Constantly profitable since 1950 FY2018 forecast Note Figures from FY1950 to FY1976 are non-consolidated figures, FY1977 and onwards are consolidated figures
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 2,560 153 160 204 181 492 543 540 542 2,867 2,861 2,918 196 183 164 550 536 1,133 1,006 1,051 1,054 1,171 1,305 425 3,224 3,299 182 Others 187 439 India 1,654 1,445 Asia (excl.india) 2,157 P 8 Others Asia (incl.india) 1,000 500 0 North America 33 32 244 223 197 205 195 207 245 281 Europe 280 Europe 588 596 672 728 756 630 639 668 Japan 675 Japan FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 forecast
P 9 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) FY2017 Full Year Summary
Basic Policy Business Strategy FY19 Target Always stay Customer-focused as in the spirit of the mission statement, and establish strong management base towards the next 100 years through Strengthen Manufacturing and Team Suzuki Automobiles Motorcycles Marine P 10 Focus on Mini, A, B and C segments and mainly on Japanese and Indian Markets Eliminate its loss-making structure through selection and concentration Establish the finest 4-STROKE outboard motors brand Performance 3.7 trillion yen, operating profit ratio of 7% Return Investment Sales Outline of Mid Term Management Plan Announced on June 30, 2015 together with new management ROE10%, Dividend payout ratio>15% (Priority on growth investment) R&D 200 billion yen, 5-year total of 1 trillion yen Automobiles: 3.4 million, Motorcycles: 2 million units
Establishing foundation toward the next 100 years Team Suzuki Reformation of Business Culture Development of Human Resources Customer-first Proposal-based challenging management Development of human resources who can take action by thinking smarter Arrangement of environment for motivating employees Globalization Establishment of new management structure Strengthening of global management Stable Management Base Diversification of Source of Profit Enhancement of Corporate Value Strengthening of Risk Management Customerfocused Take action with Customer-focused mind in all aspects in line with the spirit of the mission statement Strengthening of Manufacturing P 11 Top Priority on Quality Safety and reliance of customers is the top priority Swiftly correspond to customer s voice Making of reliable brand Creative Products Creation of value that exceed customer s expectation Offer driving pleasure, fun to use, and pride of ownership Engineering, Production and Purchasing Driving Performance, Fuel Efficiency, Safety and Reliability Evolution of manufacturing engineering Construction of global optimum production structure Promotion of optimum procurement and internal production
FY15 FY16 FY17 FY18 forecast FY19 target Mid-Term Management Plan Net Sales, Profit Ratio, Sales units P 12 Net Sales 3,757.2 billion yen (FY17)> Target: 3,700 billion yen(fy19) Operating profit 8.4%(FY16), 10.0%(FY17)> Target 7.0%(FY19) Sales Volume Stable automobile growth towards 3.4 million: driven by India Difficult to achieve 2 million motorcycles: priority on returning to profit 3,180.7 3,169.5 6.1% 2,861 2,918 8.4% 3,757.2 3,800 3,700 Consolidated sales (bln yen) 10.0% Operating profit(%) 8.9% 7.0% Sales units (1,000) 3,224 3,299 3,400 1,501 1,367 1,580 1,646 Target Automobiles Net sales 2,000 Motorcycles
Mid-Term Management Plan ROE, Capital Investment, R&D, Equity Capital P 13 ROE 17.9% (FY17) > Target 10% (FY19) Capital investment 194.6 bln yen p.a(fy15-17) = 200 bln yen/year R&D 139.4 bln yen (FY17) < 200 bln yen (FY19) Equity Capital % 38.8% (FY17) Early recovery Progress of ROE, Capital Investment, and Equity Capital % 45.6% 38.8% 35.4% 35.9% 213.4 194.5 198.8 171.5 125.9 131.0 131.5 9.6% 6.9% Capital investment(billion) R&D(billion) Equity Capital(%) ROE(%) 15.4% 17.9% 139.4 Aggregate Capital Expenditure 1 trillion (5yrs) Average Target 200.0 200.0 ROE10.0% R&D FY14 FY15 FY16 FY17 FY19
Mid-Term Management Plan Shareholder return Dividend payout ratio P 14 FY17 Dividend : 74 yen (Mid term +13 yen, year end +17, total +30 yen CPY) Dividend payout ratio 15.1% in FY17 = Target 15%(FY19) Target set at 15%, placing priority on growth investment. Payout in FY15 & FY16 decided from net income deducting the gain on sales of investment securities, considering recovery of equity capital ratio. FY16 FY17 Forecast Annual payout per share 44 yen 74 yen 74 yen Payout ratio 12.1% 15.1% 15.9% Payout ratio excluding gains from portfolio securities Increase for 8 consecutive periods Year end Mid term (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
Mid-Term Management Plan Team Suzuki Corporate Governance enhancement P 15 Mid-Term Management Plan Board of Directors Chairman President Term Supervision Execution Outside directors, total directors Suporting div Seats Committees pre FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 Mid-Term Management Target (FY11~FY14) Osamu Suzuki Chairman and President between 2008 and 2015 Term of board members shortened to 1 year from 2002 Introduced executive officers system in 2006 Appointed outside directors from 2012, 2 outside directors among 9 total New Mid-Term Management Plan SUZUKI NEXT 100(FY15~FY19) Toshihiro Suzuki 2 outside directors among 8 total Corporate Governance Dept. Secretariat of Audit&Supervisory Board Reduced to Not more than 30 from 1989 15 Advisory Committee on Personnel and Remuneration, etc. Corporate Governance Committee Vision Corporate mission Code of conduct Drafted "Mission Statement" in 1962 Drafted Suzuki Activity Charter, Suzuki employees Activity Charter in 2003 Suzuki Group Code of Conduct
Mid-Term Management Plan Capital Efficiency Policy shareholding guidelines P 16 Basic principles Objective sustainable growth, increase enterprise value in the mid and long term Standard following criteria is applied Create business opportunity Business partnership Stable transaction, establish, maintain or strengthen 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 2015.9.26 4,397 1.49% Profit all shares purchased 2015.9.17 111,610 19.89% 36.7bln by Suzuki Fuji Heavy 2016.8.8 13,690 1.75% Profit all shares sold to 2016.8.10 5,780 1.18% Industries 46.8bln market note: percentage figure representing shareholding ratio as of date of disposal
Mid-Term Management Plan Stable Management Base Funding P 17 In April 2016, Suzuki raised fund to a sum of 200 billion yen for the purpose of growth investment such as India. The scheme intends to maintain dilution at lower level Purchase of own shares 15.9) World s first scheme limiting max no. of share issue: 2x conversion price Japan s first automatic acquisition scheme : share issue only for portion of share price increase 70 50 Write off(16.3) Treasury stock Issued shares excl. own shares 0 9 16 20 24 441 441 441 441 441 441 (Million shares) (Share conversion can become 49 million shares in ordinary scheme) Shares at 4,093.1 yen 5,321 yen 6,000 yen 7,000 yen 8,186.2 yen the time of Conversion Exercise 2x conversion CB issue price 2 price 2 price 2 1 Research by lead bookrunner 2 The current Conversion price of 4,093.1 yen, may change as a result of future adjustment Share conversion in Suzuki scheme
Mid-Term Management Plan Stable Management Base Motorcycle business P 18 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
Mid-Term Management Plan Strengthening of Manufacturing Creative Products P 19 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 IGNIS Chosen as 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) Example of 4x DF350A (350 4=1,400ps)
Mid-Term Management Plan Strengthening of Manufacturing Optimal Global Production P 20 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 Improve occupancy rate in ASEAN factories Improvement in profit in Japan, Europe and Asia Production of SWIFT in Europe Japan Improve occupancy rate in Sagara Plant Improve efficiency of Hungarian plant by concentrating in production of a single platform
Rapid increase of compact car production from January Export of IGNIS began in 2Q FY16, and SWIFT in 4Q, both contributed to sharp increase of export production Sagara plant producing compact cars is in 2 shifts from Jun. 2016, and now in full scale production from Jan. 2017 Quarterly progress of compact cars (domestic/export) production in Japan (1000 units) Mid-Term Management Plan Strengthening of Manufacturing Export Domestic Optimal Global Production P 21 Production of XBEE began 100 Export of IGNIS began Sagara plant in 2 shifts 80 50 52 58 56 25 34 34 49 Export of SWIFT began 75 75 49 54 80 75 54 44 0 27 24 22 31 25 21 26 31 FY16 1Q 2Q 3Q 4Q FY17 1Q 2Q 3Q 4Q
Corporate Value Improvement Award Awarded Excellence Award P 22 2,694 8.7% 1.5 Efforts in the New Mid-Term Management Plan was highly evaluated Selected as 4 companies implementing management practices to improve corporate value among all 3,500 listed companies in Tokyo Stock Exchange. Since end of FY13, Suzuki s share price, market cap and ROE grew 2.1x, 1.9x and 2.1x (as of end FY2017) respectively Progress of share price, market cap and ROE Share price (yen) ROE Market cap (trillion yen) 3,613 6.9% 2.0 3,011 9.6% 1.5 4,622 15.4% 2.3 5,730 17.9% 2.8 As of end FY13 FY14 FY15 FY16 FY17
P 23 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) FY2017 Full Year Summary
Maruti Suzuki Financial Performance P 24 Sales (rs. 800.0 billion) 700.0 600.0 500.0 400.0 300.0 200.0 100.0 0.0 347.1 16.4 6th consecutive net income increase in FY2017 Record-high profit Net Income ratio surpassed 10% mark for the 2 nd consecutive year Maruti Suzuki financial performance 426.1 426.4 23.9 27.8 486.1 37.1 564.4 53.6 669.1 73.4 781.2 78.8 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Figures post FY15 are based on Ind-AS (Indian IFRS) Net income (Rs. billion) 80.0 70.0 60.0 50.0 40.0 30.0 20.0 10.0 0.0
Progress of Car Sales in India P 25 Wholesale of Maruti and market total Sharp rise in total market since Modi administration in 2014 FY17 saw the sales result of 114% cpy owing to contribution of BALENO and VITARA BREZZA Market share growth from 38% in FY11 to 50% 1,000 units 45% Maruti Others Share 38% 40% 2,521 2,628 2,658 42% 45% 2,504 2,601 1,388 1,622 1,607 1,450 1,430 47% 47% 2,790 3,047 1,484 1,603 50% 3,288 1,644 1,133 1,006 1,051 1,054 1,171 1,305 1,444 1,643 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Wholesale volume excluding commercial vehicles
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 P 26 千台 ) 1,000 units) 2,000 41% 36% 33% 29% 26% 1,500 1,000 500 1,444 1,305 152 1,171 143 1,054 196 129 94 68 54 64 102 61 440 496 542 585 1,643 155 254 59 748 436 426 433 414 427 0 FY13 FY14 FY15 FY16 FY17 Wholesale volume excluding commercial vehicles
Utility vehicles Maruti Suzuki Models sold in India Popular cars from the line up NEW Mid-Size P 27 ERTIGA (1400ccGE,1300ccDE) S-CROSS (1300ccDE) VITARA BREZZA (1300ccDE) CIAZ (1400ccGE, 1300ccDE) Mini ALTO 800 (800ccGE) Compact NEW SWIFT (1200ccGE, 1300ccDE) CELERIO (1000ccGE, 800ccDE) NEW WAGON R (1000ccGE) IGNIS (1200ccGE,1300ccDE) BALENO (1200ccGE,1300ccDE) DZIRE (1200ccGE, 1300ccDE)
Towards 2 million units sales in India P 28 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) 51 New CI dealerships as of end Mar. 2018 NEXA Premium car dealership established in Jul. 2015 316 dealerships as of end Mar. 2018 Commercial SUPERCARRY pickups SUPER CARRY True Value New concept pre-owned car dealerships
Towards 2 million units sales in India Strengthen Production Base P 29 Start-up of Gujarat Plant Gujarat Plant no.1 began its operations in Feb. 2017 Plant no.2 under construction with planned operation from early 2019 Plant no.3 planned, with total production capacity of 750,000 units p.a. Production capacity in India (2 shifts, 1,000 units) 750 2,000 2000 250 1,750 250 250 1,500 250 250 250 1000 800 800 800 Manesar Plant Gujarat plant No. 3 No. 2 No. 1 0 700 700 700 Gurgaon Plant Existing +Plant 1 +Plant 2 (17.2) (early 2019) 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.
Ceremonies for opening of Gujarat Plant and cornerstone laying of lithium-ion battery plant P 30 Ceremony held on 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 Suzuki s latest Indian project introduced in a video New plant in Suzuki Motor Gujarat Private Limited India s first lithium ion automotive battery plant by JV among Suzuki, Toshiba and Denso Unveiling of commemorative plate Opening of Gujarat Plant Cornerstone laying of Lithium ion battery plant Suzuki is committed to Indian Government s Make in India and Skill India initiative, and contribute to growth of the Indian automotive industry
Scope of consideration Suzuki and Toyota began consideration on EVs for India Suzuki announced in November 2017 to introduce EV for India in around 2020 P 31 Suzuki develops and produces EVs for the Indian market Toyota provides technical support Suzuki supplies some EVs to Toyota Establishment of charging stations Human resources development including after-sales service technicians throughout the network and appropriate treatment of end-of-life batteries Background Under the leadership of Prime Minister Modi, India is endeavouring to rapidly promote an automotive transition to EVs. Suzuki has already decided to construct lithium-ion battery plant. Procurement of major components (lithium-ion batteries, motor) in India Production of EVs in India Realize Make in India initiative by Indian government also in EV sector
P 32 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) FY2017 Full Year Summary
Japanese Domestic Market P 33 New models SPACIA and XBEE contributed Sales of mini cars resulted in 105% CPY in FY2017 due to all-new SPACIA model Introduction of XBEE in addition to well selling SOLIO and SWIFT resulted in 105% CPY. Sales of Mini-cars and Compact Cars in Japan (1,000 units) 750 500 250 0 32% 588 596 Mini 521 516 Market share of mini-vehicles 31% 30% 29% 672 728 756 586 647 679 31% 30% 31% 30% 630 639 668 549 532 556 Compact 68 80 85 81 76 81 107 112 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
(figures pre FY12 are wholesales) (1,000 units) 13.3% 12.9% 12.2% 150 Share 9.4% Indonesia 10.3% Effect of new model, and recovery of commercial vehicle market Recovery of commercial vehicle market and newly introduced IGNIS and BALENO from India contributed to the result of 124% CPY Introduced all-new 3 row 7 seater ERTIGA model in April this year Retail Sales in Indonesian Market 11.6% 8.6% P 34 10.3% 100 50 77 94 142 165 148 120 92 114 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Thailand P 35 Recoil from special demand now normalized Suzuki plant started operation in March 2012 Market grew until 1H/FY13 due to eco-car policy Both market/suzuki remained low due to recoil CIAZ and fully revamped SWIFT contributed in FY17, which resulted in112% CPY Retail Sales in Thailand 1,000 units) Share 0.7% 1.2% 2.1% 3.5% 2.3% 2.7% 2.9% 2.9% 25 0 40 33 20 21 23 26 6 10 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Thailand and Indonesia P 36 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
Pakistan P 37 1,000 units) 150 Share 54% 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 New CULTUS (CELERIO) contributed in FY17, 122% CPY Sales in Pakistan 58% 59% 54% 55% 60% 53% 55% 100 Special taxi demand 50 83 95 86 76 89 133 112 137 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17
Europe P 38 SWIFT, S-CROSS and IGNIS contributed Contribution of new models SWIFT, S-CROSS and IGNIS in FY17 resulted in 112% CPY 1,000 units) Share 150 1.1% Sales in 5 major European markets* 1.0% 1.0% 1.0% 1.0% 1.0% 1.1% 1.3% 100 50 107 96 87 96 99 107 128 142 0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 Total of retail sales in UK, Germany, France, Italy and Spain
P 39 NEW Hybrid system (Equipped on SOLIOmodels) A Suzuki unique parallel hybrid system combining Motor Generator Unit 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) FY2017 Full Year Summary
Suzuki s vision on Sustainability P 40 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. 1,654 (1,000 units) 281 16 139 105 668 2017 Suzuki global automobile sales: 3,224 thousand units 0 21 196 117 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
Sustainable Technologies P 41 Improvement of internal combustion engines Electrification IGNIS SOLIO WAGON R Lightweight New Lightweight Platform Introduction with ALTO (weight reduction of 60kg) ALTO New SWIFT ( weight reduction of 120kg) SWIFT
Sales of Suzuki hybrid cars P 42 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 630 202 32.1% 639 287 44.9% 668 350 52.4% India 1,305 46 3.5% 1,445 85 5.9% 1,654 85 5.2% Others 926 1 0.1% 835 17 2.0% 902 27 3.0% Total 2,861 249 8.7% 2,918 389 13.3% 3,224 462 14.3% Note: Hybrid cars include mild hybrid, S-enecharge and SHVS. Hybrid sales in Others are export from Japan and India Exclusive lithium ion battery
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 43 IGNIS SPACIA SOLIO HUSTLER SWIFT WAGON R 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
P 44 XBEE A new concept compact crossover wagon XBEE launched in Japan on 25 th December 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) FY2017 Full Year Summary
Consolidated: Financial Summary P 45 ( 億円 ) (Billions of yen) Higher earnings on higher sales, the highest ever each income * FY2017 ('17/4-'18/3) FY2016 ('16/4-'17/3) Ratio Net Sales 3,757.2 3,169.5 +587.7 +18.5% Japan 1,116.7 1,037.5 +79.2 +7.6% Suzuki brand 1,010.4 948.8 +61.6 +6.5% OEM 106.3 88.7 +17.6 +19.8% Overseas 2,640.5 2,132.0 +508.5 +23.8% Operating Income 374.2 266.7 (Margin) (10.0%) (8.4%) Ordinary Income 382.8 286.7 (Margin) (10.2%) (9.0%) +107.5 +96.1 +40.3% +33.5% Net income attributable to owners of the parent (Margin) 215.7 160.0 (5.7%) (5.0%) *The highest ever since disclosing consolidated financial results from FY1977 Change +55.7 +34.9%
Consolidated: Net Sales P 46 Increase in each segment and region, record-high * in overseas and consolidated (Billions of yen) FY2017 ('17/4- '18/3) Automobile Motorcycle Marine, etc. FY2016 ('16/4- '17/3) Change FY2017 ('17/4- '18/3) FY2016 ('16/4- '17/3) Change FY2017 ('17/4- '18/3) FY2016 ('16/4- '17/3) Change FY2017 ('17/4- '18/3) Total FY2016 ('16/4- '17/3) Change of which effect of ForEX rates conversion Japan total 1,081.3 1,002.6 +78.7 20.8 19.3 +1.5 14.6 15.6-1.0 1,116.7 1,037.5 +79.2 Suzuki brand 975.0 913.9 +61.1 20.8 19.3 +1.5 14.6 15.6-1.0 1,010.4 948.8 +61.6 OEM 106.3 88.7 +17.6 106.3 88.7 +17.6 Overseas total 2,354.5 1,893.0 +461.5 225.6 187.0 +38.6 60.4 52.0 +8.4 2,640.5 2,132.0 +508.5 +138.3 Europe 449.5 374.2 +75.3 44.0 36.9 +7.1 17.1 14.2 +2.9 510.6 425.3 +85.3 +39.2 N. America 1.5 2.2-0.7 33.0 29.9 +3.1 28.0 24.0 +4.0 62.5 56.1 +6.4 +1.8 Asia 1,654.7 1,302.1 +352.6 112.7 86.1 +26.6 5.8 4.8 +1.0 1,773.2 1,393.0 +380.2 +83.6 India 1,259.8 987.0 +272.8 46.5 31.6 +14.9 0.4 0.2 +0.2 1,306.7 1,018.8 +287.9 +74.8 Others 394.9 315.1 +79.8 66.2 54.5 +11.7 5.4 4.6 +0.8 466.5 374.2 +92.3 +8.8 Others 248.8 214.5 +34.3 35.9 34.1 +1.8 9.5 9.0 +0.5 294.2 257.6 +36.6 +13.7 Grand total of which effect of ForEX rates conversion 3,435.8 2,895.6 +540.2 246.4 206.3 +40.1 75.0 67.6 +7.4 3,757.2 3,169.5 +587.7 +138.3 +127.1 +9.5 +1.7 +138.3 Note: North America United States and Canada Automobile in North America sales of parts and accessories *The highest ever since disclosing consolidated financial results from FY1977
Consolidated:Operating Results by Segment P 47 Record high profit from automobile, Marine, Japan, Europe and Asian Business* Results by Business Segment Results by Geographical Areas (billion yen) FY17 FY16 Change FY17 FY16 Change ('17/4-18/3) ('16/4-17/3) % ('17/4-18/3) ('16/4-17/3) % Motorcycles Automobiles Marine & Power Prod. Total Net Sales 34,358.0 28,956.0 +5,402.0 +18.7% Net Sales 20,287.0 18,588.0 +1,699.0 +9.1% Operating Operating Income 3,551.0 2,551.0 +1,000.0 +39.2% Income 1,611.0 1,372.0 +239.0 +17.4% (%) (10.3%) (8.8%) (%) (7.9%) (7.4%) Net Sales 2,464.0 2,063.0 +401.0 +19.4% Net Sales 6,198.0 5,582.0 +616.0 +11.0% Operating Income 46.0-9.0 +55.0 posted profit Operating Income 172.0 131.0 +41.0 +31.1% (%) (1.9%) ( - ) (%) (2.8%) (2.3%) Net Sales 750.0 676.0 +74.0 +11.0% Net Sales 19,060.0 15,069.0 +3,991.0 +26.5% Operating Income 145.0 125.0 +20.0 +15.9% Operating Income 1,913.0 1,214.0 +699.0 +57.6% (%) (19.4%) (18.6%) (%) (10.0%) (8.1%) Net Sales 37,572.0 31,695.0 +5,877.0 +18.5% Net Sales 1,658.0 1,423.0 +235.0 +16.5% Operating Income 3,742.0 2,667.0 +1,075.0 +40.3% Operating Income 51.0 41.0 +10.0 +25.6% (%) (10.0%) (8.4%) (%) (3.1%) (2.9%) Japan Europe Asia Others *Highest ever among full year results
Consolidated: Foreign Exchange Rates, Capital Expenditure, Depreciation Expenses and R&D Expenses FY17 ('17/4-18/3) FY16 ('16/4-17/3) Change P 48 US Dollar 111 yen 108 yen +3 yen +1.8bln yen Euro 130 yen 119 yen +11 yen +15.0bln yen Indian Rupee 1.73 yen 1.63 yen +0.10 yen +14.6bln yen Indonesian Rupiah 0.83 yen 0.82 yen +0.01 yen +0.6bln yen Thai Baht 3.36 yen 3.08 yen +0.28 yen -1.8bln yen Others - - - +8.1bln yen Total Effect of ForEX in operating income +38.3bln yen Note: Indonesian Rupiah rate is yen per 100 Rupiah Mex. Peso +1.8bln yen, STG Pound 1.6bln yen, Poland Zloty +1.3bln yen, Aus. Dollar +1.3bln yen, etc FY17 ('17/4-18/3) FY16 ('16/4-17/3) Change (Non-consolidated) 53.6bln yen 67.2bln yen -13.6bln yen (Subsidiaries) 159.8bln yen 131.6bln yen +28.2bln yen Capital Expenditures 213.4bln yen 198.8bln yen +14.6bln yen Depreciation Expenses 150.9bln yen 163.4bln yen -12.5bln yen R&D Expenses 139.4bln yen 131.5bln yen +7.9bln yen
Consolidated: Forecasts for Next Fiscal Year P 49 Lower earnings on higher sales mainly owing to appreciation of the yen and increase in research and development expenses (Billions of yen) Full Year Full Year Forecast FY17 Results Change Forecast FY17 Results Change Net sales 3,800.0 3,757.2 +42.8 Capital Expenditures 250.0 213.4 +36.6 Operating income 340.0 374.2-34.2 Depreciation Expenses 150.0 150.9-0.9 (Margin) (8.9%) (10.0%) R&D Expenses 160.0 139.4 +20.6 Ordinary income 350.0 382.8-32.8 (Margin) (9.2%) (10.2%) Net income* 205.0 215.7-10.7 (Margin) (5.4%) (5.7%) *Net income attributable to owners of the parent Factors of Change in Operating Income Factors of Change Effect of ForEX rates -22.0 Increase of R&D expenses -20.0 Increase of various expenses -20.0 Change in sales, model mix -0.2 Cost reduction +28.0 Total -34.2 ForEX Rates and Effects Full Year Effect of ForEX rates in operating income Forecast FY17 Results Change U.S. Dollar 105 yen 111 yen -6yen -3.7 Euro 130 yen 130 yen ±0yen +0.5 Indian Rupee 1.65 yen 1.73 yen -0.08yen -11.9 Indonesian Rupiah * 0.78 yen 0.83 yen -0.05yen -2.2 Thai Baht 3.30 yen 3.36 yen -0.06yen +0.3 *Indonesian Rupiah rate is yen per 100 Rupiah Others Effect of ForEX rates total -5.0-22.0
(1000 units) Record high automobile production and sales * FY17 Production and Sales: FY2017 Results Production FY16 FY17 Sales P 50 ('17/4-18/3) ('16/4-17/3) Change % ('17/4-18/3) ('16/4-17/3) Change % <Automobile> Japan 971 871 +100 +11.5% 668 639 +29 +4.6% Europe 180 203-23 -11.4% 281 245 +36 +14.9% Asia 2,185 1,999 +186 +9.3% 2,093 1,870 +223 +11.9% (India) (1,781) (1,585) (+196) (+12.4%) (1,654) (1,445) (+209) (+14.5%) Others 2 1 +1 +72.9% 182 164 +17 +10.4% Total 3,338 3,074 +264 +8.6% 3,224 2,918 +306 +10.5% <Motorcycles> Japan 152 141 +11 +8.1% 60 62 2 4.0% Europe - - - - 40 45-5 -10.9% N. America 4 4-0 -3.0% 35 32 +3 +10.6% Asia 1,431 1,162 +269 +23.2% 1,261 1,039 +222 +21.3% Others 42 62-21 -32.9% 184 190-5 -2.8% Total 1,630 1,370 +260 +19.0% 1,580 1,367 +212 +15.5% *The highest ever since disclosing global products and sales FY16
(Thousand units) Production and sales volume: The Next Year Forecasts Targets for sales expansion of both automobiles and motorcycles Forecast Production FY17 Results Forecast Sales FY17 Results (FY18) (FY17) Change Ratio (FY18) (FY17) Change Ratio P 51 <Automobile> Japan 981 971 +10 +1.0% 675 668 +7 +1.0% Europe 173 180-7 -4.0% 280 281-1 -0.4% Asia 2,257 2,185 +72 +3.3% 2,157 2,093 +64 +3.0% Others 2 2-0 -12.5% 187 182 +5 +3.0% Total 3,413 3,338 +75 +2.2% 3,299 3,224 +75 +2.3% <Motorcycle> Japan 135 152-17 -11.3% 64 60 +4 +7.6% Europe - - - - 50 40 +10 +25.1% N.America 4 4-0 -6.6% 40 35 +5 +13.5% Asia 1,496 1,431 +65 +4.5% 1,317 1,261 +56 +4.5% Others 50 42 +8 +19.2% 175 184-9 -5.0% Total 1,685 1,630 +55 +3.4% 1,646 1,580 +66 +4.2%
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).