Financial Results SUZUKI MOTOR CORPORATION 10 May 2016
Full-Year Highlights Page2 Worldwide Sales Volume of Automobile 2,861 thousand units, 6 thousand units year-on-year Decrease of sales in Japan, China and Indonesia, despite increase of sales in India(1,305 thousand units, the highest sales,+11.5% year-on-year) and increase of sales in Pakistan and Europe(all-new Vitara)etc. Worldwide Sales Volume of Motorcycle 1,496 thousand units, 268 thousand units year-on-year Decrease of sales in Indonesia and China etc., despite increase of sales in Europe and the US ('15/4-'16/3)result higher earnings on higher sales Net Sales : 3,180.7 billion yen, +5.5% year-on-year Operating Income : 195.3 billion yen, +8.9% year-on-year Ordinary Income : 209.1 billion yen, +7.6% year-on-year Net Income * : 116.7 billion yen, +20.4% year-on-year Cash dividends per share (year-end)17.00 Yen (Annual) 32.00 Yen, +5yen year-on-year Taking into consideration purchase and retirement of treasury stocks carried out, cash dividends per share determined based on the net income * after excluding gain on sales of investment securities *Net income means Net income attributable to owners of the parent.
FY2016 Fourth Quarter ; The Next Year Forecasts *Net income means Net income attributable to owners of the parent. Page3 Worldwide Sales Volume of Automobile 2,956 thousand units, +95 thousand units year-on-year The sales target in Japan, 100 thousand units on Sub-compact and standard-sized vehicle The sales target in India, +7% year-on-year Worldwide Sales Volume of Motorcycle 1,502 thousand units, unchanged from. Prospects for the increase of sales of large displacement motorcycle in Japan, Europe and the US and sales in India. The Next Year Forecasts Lower earnings on lower sales owing to the appreciation of the yen Net Sales : 3,100.0 billion yen, - 2.5% year-on-year Operating Income : 180.0 billion yen, - 7.8% year-on-year (Effect of ForEX rates -62.0 billion yen ) Ordinary Income : 185.0 billion yen, -11.5% year-on-year Net Income * : 93.0 billion yen, -20.3% year-on-year Cash dividends (Forecast) unchanged from
Consolidated: Financial Summary Page4 Higher earnings on higher sales ( 15/4- ( 14/4-16/3) 15/3) Change Ratio Net Sales 3,180.7 3,015.5 +165.2 +5.5% 3,100.0 +80.7 +2.6% Japan 1,047.9 1,094.6-46.7-4.3% 950.0 +97.9 +10.3% Suzuki brand 944.7 964.0-19.3-2.0% 860.0 +84.7 +9.8% OEM 103.2 130.6-27.4-20.9% 90.0 +13.2 +14.7% Overseas 2,132.8 1,920.9 +211.9 +11.0% 2,150.0-17.2-0.8% Operating Income 195.3 179.4 195.0 (Margin) (6.1%) (6.0%) (6.3%) Ordinary Income 209.1 194.3 205.0 +14.8 +7.6% +4.1 (Margin) (6.6%) (6.4%) (6.6%) Net Income 116.7 96.9 120.0 +19.8 +20.4% -3.3-2.8% (Margin) (3.7%) (3.2%) (3.9%) In comparison with previous forecast Forecast at the end of Q3 (Billions of Yen) Change Ratio +15.9 +8.9% +0.3 +0.2% +2.0%
Consolidated: Net Sales Page5 (Billions of Yen) ('15/4- '16/3) Motorcycle ('14/4- '15/3) Change ('15/4- '16/3) Automobile ('14/4- '15/3) Change Marine & Power products, etc. ('15/4- '16/3) ('14/4- '15/3) Change ('15/4- '16/3) Total ('14/4- '15/3) Change of which effect of ForEX rates conversion Japan total 21.3 20.8 +0.5 1,011.0 1,054.4-43.4 15.6 19.4-3.8 1,047.9 1,094.6-46.7 Suzuki brand 21.3 20.8 +0.5 907.8 923.8-16.0 15.6 19.4-3.8 944.7 964.0-19.3 OEM 103.2 130.6-27.4 103.2 130.6-27.4 Overseas total 212.6 229.7-17.1 1,867.5 1,647.6 +219.9 52.7 43.6 +9.1 2,132.8 1,920.9 +211.9 +10.4 Europe 41.7 42.9-1.2 347.8 314.2 +33.6 15.3 14.9 +0.4 404.8 372.0 +32.8-12.2 N. America 39.0 43.4-4.4 4.2 5.4-1.2 23.8 17.3 +6.5 67.0 66.1 +0.9 +4.7 Asia 90.8 99.2-8.4 1,299.4 1,111.6 +187.8 4.5 3.7 +0.8 1,394.7 1,214.5 +180.2 +29.2 Others 41.1 44.2-3.1 216.1 216.4-0.3 9.1 7.7 +1.4 266.3 268.3-2.0-11.3 Grand total of which effect of ForEX rates conversion 233.9 250.5-16.6 2,878.5 2,702.0 +176.5 68.3 63.0 +5.3 3,180.7 3,015.5 +165.2 +10.4-1.4 +10.5 +1.3 +10.4
Consolidated: Factors of Change in Operating Income Page6 179.4 +24.6-33.9 Cost reduction +58.6 Change in sales, model mix of which raw materials +17.8 Increase of depreciation expenses Increase of various expenses Increase of R&D Effect of ForEX expenses -25.4 rates -5.1-2.9 (Billions of Yen) 195.3 Operating income Operating income Factors of increase +83.2 Factors of decrease -67.3 Operating income +15.9
Consolidated: Foreign Exchange Rates Page7 ('15/4-'16/3) ('14/4-'15/3) Change Effect of ForEX rates in operating income U.S. Dollar 120 yen 110 yen +10 yen +4.2bln yen Euro 133 yen 139 yen -6 yen -6.3bln yen Indian Rupee 1.85 yen 1.81 yen +0.04 yen +3.9bln yen 100 Indonesian Rupiah 0.89 yen 0.91 yen -0.02 yen -0.6bln yen Thai Baht 3.44 yen 3.38 yen +0.06 yen -0.6bln yen Others - - - -3.5bln yen Total -2.9bln yen
Consolidated: Capital Expenditures, Depreciation Expenses, R&D Expenses and Interest-Bearing Debt balance Page8 ('15/4-'16/3) ('14/4-'15/3) (Billions of Yen) Change (Non-consolidated) 66.0 50.2 +15.8 (Subsidiaries) 105.5 144.3-38.8 Capital Expenditures Depreciation Expenses R&D Expenses 171.5 194.5-23.0 168.3 134.4 +33.9 131.0 125.9 +5.1 Interest-Bearing Debt balance Q3 ('16/3) ('15/3) Change ('15/12) Change 529.3 554.7-25.4 590.0-60.7
Consolidated: Cash Flows Page9 Operating C/F Investing C/F (Billions of Yen) +294.1-242.4 Financing C/F 932.3 Free C/F +51.7-520.4 of which the acquisition of treasury stocks -460.5 Other -13.5 450.1 At beginning of period Cash Balance -482.2 At end of period
Consolidated: Operating Results by Business (Net sales, Operating income) Page10 (Billions of Yen) Net sales Motorcycle Automobile Net sales +176.5(+6.5%) 2,878.5 2,702.0 Marine & Power Products, etc. Net sales -16.6(-6.6 %) 250.5 233.9 Operating income Operating income -9.5(Increased loss) -0.7-10.2 Net sales +5.3(+8.3 %) Operating income 63.0 68.3 +20.8(+12.1%) Operating income +4.6(+55.8 %) 171.8 192.6 8.3 12.9 14/4-15/3 15/4-16/3 14/4-15/3 15/4-16/3 14/4-15/3 15/4-16/3
Consolidated: Operating Results by Geographical Areas (Net sales, Operating income) Page11 (Billions of yen) Net sales Triangle trade Japan Net sales +45.2(+2.6%) 1,765.0 1,810.2 Net sales(not included triangle trade) Operating income (195.4) (328.7)(Triangle trade) 1,569.6 1,481.5 Operating income -5.9(-6.5%) 90.7 84.8 Europe Asia Net sales +114.4(+26.2 %) 436.1 550.5 Operating income +1.6(+31.4%) 5.1 6.7 Net sales +189.9(+14.5%) 1,306.2 (222.1)(Triangle trade) (127.3) 308.8 328.4 1,496.1 Operating income +22.2(+27.2%) 81.6 103.8 Others Net sales -4.8(-3.0%) 159.2 154.4 Operating income -0.2(-7.2%) 2.6 2.4 14/4-15/3 15/4-16/3 14/4-15/3 15/4-16/3 14/4-15/3 15/4-16/3 14/4-15/3 15/4-16/3
Consolidated: Number of Consolidated Subsidiaries, Equity Method Affiliates and Employees Page12 Q3 ('16/3) ('15/3) Change ('15/12) Change Consolidated Subsidiaries 136 133 +3 135 +1 Equity Method Affiliates 33 35-2 34-1 Employees 61,601 57,409 +4,192 58,390 +3,211
Consolidated: Forecasts for Next Fiscal Year Page13 Although FY2016 prospects lower earnings on lower sales owing to the appreciation of the yen, the Group will work as one to reform in every field and pursue the business activity to accomplish more than the below forecasts for the consolidated operating results. (Billions of Yen) Full Year Forecast FY 2015 Results Change Net sales 3,100.0 3,180.7-80.7 1500.0 Operating income 180.0 195.3-15.3 90.0 (Margin) (5.8%) (6.1%) (6.0%) Ordinary income 185.0 209.1-24.1 92.5 (Margin) (6.0%) (6.6%) (6.2%) Net income* 93.0 116.7-23.7 46.5 (Margin) (3.0%) (3.7%) (3.1%) Capital Expenditures 220.0 171.5 +48.5 Depreciation Expenses 170.0 168.3 +1.7 R&D Expenses 140.0 131.0 +9.0 First Half Forecast *Net income attributable to owners of the parent Factors of Change in Operating Income factors of increase factors of decrease Change in sales, model mix +54.7 Effect of ForEX rates -62.0 Cost reduction +29.0 Increase of various expenses -26.0 Increase of R&D expenses -9.0 Increase of depreciation expenses -2.0 factors of increase total +83.7 factors of decrease total -99.0
Consolidated: Forecasts for Next Fiscal Year (Foreign Exchange Rates) Page14 Full Year Forecast FY 2015 Results Change Effect of ForEX rates in operating income U.S. Dollar 105 yen 120 yen -15 yen -7.2bln yen Euro 120 yen 133 yen -13 yen -13.4bln yen Indian Rupee 1.60 yen 1.85 yen -0.25 yen -26.6bln yen 100 Indonesian Rupiah 0.80 yen 0.89 yen -0.09 yen -2.6bln yen Thai Baht 3.00 yen 3.44 yen -0.44 yen +4.3bln yen Others Effect of ForEX rates total -16.5bln yen -62.0bln yen
Progress of Mid-Term Management Target Page15 Mid-Term Management Target(2015-2019 ) Consolidated Net sales 3.7trillion yen and Operating Income Margin 7% Operating Income Margin Target 6.0% 6.1% 5.8% 7.0% 4.3% 3,502.4 Consolidated Net Sales Target 3,700.0 3,015.5 3,180.7 3,100.0 FY2007 FY2016 FY2019 Result Result Result Forecast Target
Production Volume of Motorcycles Page16 Full Year Comparison -320(-17.8%) Three Months Comparison -62(-15.2%) (Thousand units) 1,799 85 1,479 74 Others 1,554 1,278 5 4 154 122 14/4-15/3 15/4-16/3 Asia North America Japan 406 25 344 16 343 300 1 1 37 28 15/1-3 16/1-3 Others Asia North America Japan
Sales Volume of Motorcycles Page17 Full Year Comparison -268(-15.2%) Three Months Comparison -65(-15.7%) ( 千台 ) (Thousand units) 1,764 212 1,496 215 Others 1,397 1,126 43 46 45 48 67 61 14/4-15/3 15/4-16/3 Asia North America Europe Japan 416 56 351 52 322 263 11 13 11 14 10 14 15/1-3 16/1-3 Others Asia North America Europe Japan
Sales Volume of Motorcycles by Geographical Areas (Asia) Page18 Full Year Comparison -271(-19.4%) 1,397 Three Months Comparison -60(-18.6%) (Thousand units) New Access125 (India) Full model changed the top-seller Access 125 scooter in Suzuki India. Launched from March 269 1,126 341 259 Others New SATRIA F150 (Indonesia) 223 564 313 101 453 India Indonesia China 322 263 69 83 71 31 68 22 139 101 Others India Indonesia China Full model changed the underbone sports Satria F150 Launched from February 14/4-15/3 15/4-16/3 15/1-3 16/1-3
Production Volume of Automobiles Page19 Full Year Comparison -91(-3.0%) 3,043 2,951 3 2 Others Three Months Comparison -83(-10.1%) (Thousand units) 1,842 1,896 Asia 816 1 733 0 Others 143 1,055 of which CBUs:1,006 193 861 of which CBUs:827 Europe Japan 501 44 271 of which CBUs:259 488 51 194 of which CBUs:186 Asia Europe Japan 14/4-15/3 15/4-16/3 15/1-3 16/1-3
Sales Volume of Automobiles Page20 Full Year Comparison -6(-0.2%) 2,867 2,861 196 183 Others Three Months Comparison -15(-1.9%) (Thousand units) 1,721 1,842 Asia 754 739 50 44 Others 195 207 Europe 462 457 Asia 756 630 Japan 14/4-15/3 15/4-16/3 53 57 189 182 15/1-3 16/1-3 Europe Japan
10,000 Units) 500 400 Worldwide Sales of Swift Reach Five Million Units Page21 Reached in April (11 years and 5 months since launch from 2004) Produced in countries including Japan, Hungary, India, China, Pakistan, and Thailand etc. Truly a world strategic car, having been favored and widely accepted globally from emerging market to developed market <Trend in Sales Units> 300 Second-generation Swift 200 100 0 First-generation Swift DZIRE (India) '04 '05 '06 '07 '08 '09 '10 '11 '12 '13 '14 '15
Sales Volume of Automobiles by Geographical Areas (Japan) Page22 Full Year Comparison -126(-16.6%) 756 76 679 630 Sub-compact and standardsized vehicle 81 Minivehicle 549 Three Months Comparison -6(-3.4%) 189 23 (Thousand units) 182 Sub-compact and standardsized vehicle 28 Minivehicle 165 154 Ignis Functional and stylish mini crossover All variants installed with mild hybrid system and K12C DUALJET engine Produced at Sagara Plant and launched from February Baleno Compact hatchback 1.0L turbo engine and 1.2L engine Produced by Maruti Suzuki India Ltd. Launched in Japan from March (turbo variant from May) To be distributed worldwide including Japan and Europe 14/4-15/3 15/4-16/3 15/1-3 16/1-3
Sales Volume of Automobiles by Geographical Areas (India) Page23 Full Year Comparison +135(+11.5%) 30% 30% 1,171 821 Percentage of Diesel engine cars 1,305 Petrol engine car 914 Diesel engine car 350 391 Three Months Comparison +16(+5.1%) 27% 30% 317 (Thousand units) Percentage of Diesel engine cars 333 Petrol engine car 230 234 Diesel engine car 87 99 <Change of market(passenger car + MUV ) in India> Market share 38.3% 39.4% 42.1% 45.0% 46.8% (Thousand units) 2,628 2,665 2,504 2,601 2,790 1,622 1,614 1,450 1,430 1,485 1,006 1,051 1,054 1,171 1,305 FY2011 FY2012 FY2013 MUV Multi Utility Vehicle VITARA BREZZA New compact SUV (overall length under 4m) 1.3L diesel engine, 2WD, MT Launched in India from March Others Suzuki group 14/4-15/3 15/4-16/3 15/1-3 16/1-3
Sales Volume of Automobiles by Geographical Areas (ASEAN) Page24 Full Year Comparison -24(-12.8%) 185 16 20 161 20 Others Three Months Comparison -2(-5.7%) (Thousand units) 21 Thailand 40 38 148 120 Indonesia 5 5 5 Others Thailand 31 28 Indonesia 14/4-15/3 15/4-16/3 ASEAN; Total of 5 countries - Indonesia, Malaysia, Thailand, Philippines and Vietnam 15/1-3 16/1-3
Forecasts for Next Fiscal Year (Production and Sales of Motorcycles) Page25 (Thousand units) Europe 48 50 FY2016 Asia 1,278 1,241 1,126 1,150 Japan 122 61 133 65 FY2016 FY2016 Production North America 4 46 6 47 FY2016 Sales Worldwide sales target of motorcycle in FY2016 1,502 thousand units (+0.4% year-on-year) Others 42 39 FY2016 Latin America 74 174 66 151 FY2016
Forecasts for Next Fiscal Year (Production and Sales of Automobiles) Page26 (Thousand units) Europe 193207 191 232 Asia 1,896 2,047 1,842 1,888 Japan 861 630 911 650 Minivehicle: Minivehicle: Production Sales FY2016 549 550 FY2016 FY2016 Worldwide sales target of automobile in FY2016 2,956 thousand units (+3.3% year-on-year) Others 82 82 FY2016 Latin America 101 104 2 2 FY2016
Non-Consolidated: Financial Summary Page27 Lower operating income on lower sales (Billions of Yen) Change ( 15/4-16/3) ( 14/4-15/3) Ratio Net Sales 1,609.1 1,663.1-54.0-3.3% Japan 846.8 992.8-146.0-14.7% Overseas 762.3 670.3 +92.0 +13.7% General trade 433.7 474.9-41.2-8.7% Triangle trade 328.6 195.4 +133.2 +68.2% Operating Income 51.8 69.1 ( margin ) (3.2%) (4.2%) Ordinary Income 76.2 74.7 ( margin ) (4.7%) (4.5%) Net Income 78.6 51.2 ( margin ) (4.9%) (3.1%) -17.3-25.1% +1.5 +2.0% +27.4 +53.4%
Cancellation of Treasury Stock and Issue of Convertible Bonds <Trend in Total Number of Outstanding Shares> No. of Treasury Stock at FY-end Balance of Total No. of Outstanding Shares 561 561 561 End of '15/3 120 441 441 End of '15/9 (Million Shares) End of 16/3 Cancelled 70 Mil. treasury stock 491 50 24 End of '16/3 Maximum no. of convertible stock * (Dilution ratio 5.5%) Page28 <Overview of the Convertible Bonds> Use of Proceeds Use as strategic investment for accelerating the Group s mid-term management plan and for strengthening its competitive position, primarily for the Gujarat Project in India Characteristics of the Convertible Bonds Designed to minimize the dilutive impact, such as with the contingent conversion mechanism, acquisition clauses (subject to the maximum number of shares to be delivered), and the combination of two types of such acquisition clauses. Issued Amount Total of \200 Billion \100 Billion \100 Billion Terms 5yrs (due 21/3) 7yrs (due 23/3) Coupon 0% 0% Name Closing Date Conversion Price Trigger Price (Contingent Conversion Mechanism) Max. No. of Convertible Stock * (Potential Dilution Ratio) Euro Yen Zero Coupon(subject to the maximum number of shares to be delivered) Convertible Bond 1 April 2016 4,120 5,356 (Conversion Price x 130%) 24,271,844 Shares (Maximum 5.5%) *When all stock acquisition rights are acquired at the maximum number of shares to be delivered, based on the automatic-acquisition-upon-exercise clauses or one-time acquisition clauses. When all stock acquisition rights are exercised at the conversion price, the number of convertible stock is 48,543,688 shares (potential dilution ratio 11.0%)
Cash Dividends per Share Page29 In The New Mid-Term Management Plan(FY2019), the consolidated dividend payout ratio target is more than 15%. Taking into consideration carried out purchase and retirement of treasury stock, cash dividends per share determined based on the net income *1 after excluding gain on sales of investment securities. Year-end dividends is the same amount to. Annual Dividends: 32yen, +5yen year-on-year FY2016 Dividends(forecast) is the same amount to. Interim dividends Year-end dividends Annual dividends <dividend In comparison with FY 2014 FY 2014 Change Result In comparison with previous forecast Previous Change forecast 15yen 10yen +5yen 15yen ±0yen 15yen (Forecast) 17yen (Plan) 17yen ±0yen 17yen (Forecast) ±0yen 17yen 32yen (Plan) 27yen +5yen 32yen (Forecast) ±0yen 32yen *2 FY2016 Forecast (Forecast) (Forecast) payout ratio> <13.6%> <15.6%> <13.2%> <15.2%> *1 Net income means Net income attributable to owners of the parent. *2 the dividend payout ratio in keeps more than 15%, based on net income *1 after excluding gain on sales of investment securities.
Financial Results SUZUKI MOTOR CORPORATION
Page31 Caution with respect to Forward-Looking Statements 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). [English translation from the original Japanese language document]