SUZUKI Annual Report 2006
Total Page：16
File Type：pdf, Size：1020Kb
ANNUAL REPORT 2006 A MESSAGE FROM THE MANAGEMENT In delivering our Annual Report 2006, we wish to extend our In terms of motorcycles, in Japan efforts aimed at expanding greetings to you. the sales of small motor vehicles and larger motorcycles will In terms of the business environment in which our group was continue. In European and North American markets, we will involved, there was concern about the impact of inflating oil promote the introduction of products that enhance a “Sporty, prices, etc. but domestically, there were increases in capital Youthful, and Unique” brand image derived from our racing investments due to improvements in business earnings, activities in order to build up a highly profitable motorcycle increased demand, etc. Also individual consumption remained operation. And as the growth of economies rapidly increases steady resulting in a modest recovery in the business climate. demand for motorcycles in Asia, we will introduce products that Overseas, change in global economies, including the meet with market needs and promote the development and American economy, was generally favorable, and recovery was improvement of production systems. steady. In terms of automobiles both domestically and overseas, Amid such circumstances, the launch of the “Suzuki Mid- efforts will be made to develop products and business activities Term 5-Year Plan” was scheduled to bring the prospect of closely tied to the market. To increase sales in Japan, we are decreased profits due to the burden of increased prior transforming our Suzuki Arena dealers with additional staff and investments in research and development, facilities, etc., education programs aimed at strengthening the sales force. however, consolidated net sales by our group for this term Overseas, onsite procurement of components, cost reductions came to 2,746,453 million yen (116.1% compared to the and further heightening of quality and productivity will be previous year). Regarding consolidated income, increases in pursued in order to strengthen our business base. depreciation expenses, research and development expenses, Furthermore, efforts will be taken to develop, in an effective overhead costs, etc., were absorbed by reductions in price and efficient manner, products that closely suit each of the costs, increases in sales, and currency gains. Operating world’s four central markets, and introduce them in a timely income was 113,865 million yen (105.9% compared to the fashion. And in protecting the global environment, we will previous year), ordinary income was 119,321 million yen promote the development of products designed for low (108.9% compared to the previous year), and net earnings for environmental impact by reducing exhaust emissions, this term were 65,945 million yen (109% compared to the improving fuel efficiency, reducing the amount of natural previous year). resources required for their production, and facilitate recycling. While non-consolidated net sales of our company were In addition, we will work toward maximizing the effectiveness of 1,690,169 million yen (114.1% compared to the previous year), our strategic alliances with Fiat in diesel engines, and with the increases in depreciation expenses, research and General Motors Corporation in hybrid and fuel cell vehicles, etc. development expenses, overhead costs, etc. decreased operating income to 47,482 million yen (89.9% compared to Although the General Motors group reduced their holdings the previous year) and ordinary income to 52,179 million yen of our corporate stock to 3%, the General Motors Corporation (98.6% compared to the previous year). Net earnings for this and Suzuki have had ties since August 1981 and our term increased to 37,271 million yen (104.3% compared to the constructive alliance has continued for over 25 years. We will previous year) due to reduction of extraordinary loss, etc. continue to promote concrete projects such as the cooperative Dividends at the end of the current fiscal year were an development of advanced technologies, our joint venture in the ordinary dividend of 5 yen plus a special dividend of 1 yen, for CAMI project in Canada and new mid-sized SUV production at a total of 6 yen per share for the year (11 yen including interim CAMI, cooperative development of power train systems, dividends). complementary supplying of OEM products, global joint procurement, etc. Looking at the business environment surrounding our group, We supply OEM mini vehicles to the Nissan Motor Co., Ltd. currency fluctuations and other factors remain extremely based on an April 2001 agreement, and as a prerequisite for uncertain, and competition between rival companies has complementary supply, we will promote the expansion of OEM increased even further, leading to an extremely severe supply in the future. situation. In order to deal with this serious situation, our group will Under the motto ”Small Cars, —for a Big Future.” Suzuki has implement revisions in all fields and make efforts to strengthen set out our determination to continue active efforts to develop management culture under our basic corporate policy summed small cars that our customers demand and to make efforts to up by the slogan “In order to survive, let us stop acting in a ensure that our products have a minimal impact on the global self-styled manner and get back to basics.” environment. At the same time, we will focus on the key words “Smaller, Fewer, Lighter, Shorter and Neater” in all aspects of In addition to this, the number of directors was reduced to production, organization, facilities, parts, environment, etc., in nearly half of the former number, and a new director’s system order to promote a highly efficient and healthy business (executive and managing directors) was implemented to make operation. management in each section more flexible and efficient, speed In terms of our directors and employees, all statutes, social up operations, and clarify management responsibility. Board norms, and in-house bylaws, will be strictly observed and we members are now responsible for multiple departments so as will act frankly and with sincerity. to eliminate the harmful effects of sectionalism and allow us to We look forward to the continued support and look at operations from a managerial cross-cutting perspective. encouragement of all of our stockholders. June 2006 SUZUKI MOTOR CORPORATION 1 A MESSAGE FROM THE MANAGEMENT Osamu Suzuki Hiroshi Tsuda Chairman & CEO President & COO PROFILE Suzuki Motor Corporation designs and Suzuki Motor Corporation was first established as manufactures passenger cars, commercial vehicles, Suzuki Loom Manufacturing Co. in March 1920. motorcycles, All Terrain Vehicles (ATVs), outboard Suzuki then entered the motorcycle business with motors, and other products. The company the introduction of "Power Free" motorized bicycle in continuously and vigorously promotes technical 1952, and entered the automobile business in 1955 cooperation through numerous joint ventures with the introduction of "Suzulight" lightweight car. overseas, and its main production facilities are Suzuki is committed to use its amassed currently located in 23 countries and areas around technological expertise and all other available the world. The established network enables Suzuki to resources to help raise the quality of human life in operate as a global organization serving 192 society by promoting corporate growth through countries and areas. manufacture and supply of socially demanded products. CONTENTS A MESSAGE FROM THE MANAGEMENT _____ 1 FINANCIAL HIGHLIGHTS _________________ 3 YEAR IN REVIEW _________________________ 4 AUTOMOBILES _____________________________ 5 MOTORCYCLES _____________________________ 8 MARINE AND POWER PRODUCTS ___________ 11 OTHER TOPICS _____________________________ 12 CORPORATE DATA, BOARD MEMBERS, AND OVERSEAS SUBSIDIARIES _____________ 14 CORPORATE DATA __________________________ 14 MEMBERS OF THE BOARD AND AUDITORS ____ 14 MAJOR OVERSEAS SUBSIDIARIES ______________ 14 THE STATUS OF THE CORPORATE GROUP __ 15 Head Office & Takatsuka Plant FINANCIAL SECTION _____________________ 18 Headquarters, Engineering center and Motorcycle engines assembling plant 2 SUZUKI MOTOR CORPORATION FINANCIAL HIGHLIGHTS Thousands of Millions of yen U.S. dollars SUZUKI MOTOR CORPORATION (except per AND CONSOLIDATED SUBSIDIARIES (except per share amounts) share amounts) Years ended March 31, 2006 and 2005 2006 2005 2006 Net sales ....................................................................... ¥2,746,453 ¥2,365,571$1$23,380,045 Net income .................................................................... 65,945 60,506 561,379 Net income per share: Primary ....................................................................... 125.64 112.94 1.069 Fully diluted ................................................................ 122.14 109.86 1.039 Cash dividends per share............................................. 11.00 10.00 0.093 Shareholders’ equity ..................................................... 616,770 745,016 4,65,250,451 Total current assets....................................................... 1,067,709 999,887 9,089,213 Total assets ................................................................... 1,849,714 1,693,353 115,746,271 Depreciation and amortization ...................................... 126,520 97,731 1,077,047 Note: Yen amounts are translated into U.S. dollars, for convenience only, at ¥117.47 = US$1, the prevailing exchange rate on March 31, 2006. Net Sales2,746,453