Suzuki 2012 Annual Report Download - page 4

2 SUZUKI MOTOR CORPORATION
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The management environment of the Group for FY2011 continues
to be in an unpredictable situation with bad inuence of nancial
turmoil in Europe on global economy. The domestic economy is
somewhat recovering from the stagnation following the Great East
Japan Earthquake, but in severe situation with slowdown of over-
seas economy, lengthening yen appreciation, and further, surging
oil price and other factors.
Under these circumstances, the Japanese domestic market sales
was able to accomplish its highest ever net sales at ¥986.8 bil-
lion (up 5.3% year-on-year) by recovering in the second half from
the sales drop of the rst half due to the impact of the Great East
Japan Earthquake. As for the overseas, the net sales decreased by
¥145.4 billion (8.7%) to ¥1,525.4 billion year-on-year due to the
sales drop of the automobiles in India, in addition to the impact of
the yen appreciation. As a result, the consolidated net sales of the
FY2011 decreased by ¥96.0 billion (3.7%) to ¥2,512.2 billion year-
on-year.
In terms of the consolidated income, the operating income in-
creased by ¥12.4 billion (11.6%) to ¥119.3 billion year-on-year
by absorbing the factors of income decrease such as decreased
sales and impact of the exchange rate, to the factors of income
increase such as cost reduction, decrease of expenses, and de-
crease of depreciation. Ordinary income increased by ¥8.1 billion
(6.6%) to ¥130.6 billion year-on-year. Net income increased by
¥8.7 billion (19.3%) to ¥53.9 billion year-on-year by absorbing the
increase of tax expense due to the reversal of deferred tax assets
involved with the lowering of tax rate such as the income tax.
As to FY2011, the Company was able to record prots over the
previous scal year by vigorous reduction of expenses in every
aspect despite the inuence of the yen appreciation, the Great
East Japan Earthquake, and the inuence of oods in Thailand.
Although the management environment is still expected to be
grim, the Company plans to distribute total annual dividends
amounting to ¥15.00 per share for the scal year ended 31 March
2012, accordingly, year-end dividend will be ¥8.00 per share. As a
result, the annual dividends will be up by ¥2.00 per share from the
previous scal year.
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The Group has reviewed every aspect of our business and
strengthened our management practices placing “Let’s review the
current practices and stay true to the basics in order to survive
the competition.” as our basic policy in promoting the growth
strategy.
As a result, amid a number of negative factors such as the slug-
gish market in the US and Europe that has prevailed for several
years, acute appreciation of the yen and natural disasters both in
Japan and at overseas, the Group has been able to conduct stable
management and achieve steady recovery.
Nonetheless, the Group now faces many issues that need to be
addressed, including the appreciation of the yen, nancial turmoil
in European market, various environmental issues and risks asso-
ciated with disasters.
With a view to overcoming those issues, the Group has set a new
basic policy of “We must use our knowledge and try harder to
break out of the present situation” and will be united as one and
tackle them.
As a concrete measure, the Corporate Planning Committee estab-
lished in April 2011 has been mainly responsible for sorting out
the Group’s signicant management issues, deciding management
policies in a timely manner, promoting the implementation of
such policies and following them up.
To respond to the intensifying competition at various regions and
products, the Group will be expanding and strengthening its sales
network both in Japan and at overseas, developing products that
match the respective local market, making its products develop-
ment more ecient by integrating engine, power train and plat-
form and cost reduction.
In the arena of products development in particular, the Group has
always dened its mission as oering valuable products for the
customers. The Group’s brand slogan “Way of Life!” was created
hoping to “oer the customers the experience of excitement and
exceed their expectations.” The Group will be striving to develop
products that would fulll the three factors of “driving pleasure,”
“fun to use” and “pride of ownership” that constitute the essence
to realize the slogan “Way of Life!”
A Message from the Management
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