A Message from the Management
A Message from the Management
There are two items to report in advance of the Outline and Result
of Business.
For the moment, the Group will prioritize growth investment cen-
tering on India, while recognizing that capital efficiency and share-
holders’ return are also important management issues. In light of
this, the Group will be responding to the capital issue by balancing
enhancement of shareholders’ equity and dividend payment.
In the New Mid-Term Management Plan SUZUKI NEXT 100, the
Company set the consolidated dividend payout ratio of more than
15% as the shareholder return target in FY2019.
As for this fiscal year, the Company implemented purchase and
retirement of treasury stocks. Taking this into consideration, based
on the net income attributable to owners of the parent excluding
the gain on sales of the ordinary shares of Volkswagen AG, the
year-end dividends was the same as the previous fiscal year at
¥17.00 per share. As a result, the annual dividends including the
interim dividends was ¥32.00 per share, up by ¥5.00 per share
from the previous fiscal year.
The first is regarding the arbitration case with Volkswagen AG raised
in November 2011, which has been a source of disturbance to our
shareholders over several years. The contract was annulled through
the arbitration award of August 2015, and in the following month
of September, the Company’s stocks were successfully restored.
Furthermore, in March 2016, the Company canceled some of the
stocks it repurchased.
Second, the Company wishes to express its profound apologies for
the disturbance caused to our shareholders as a result of cases
of improper activities that were inconsistent with national regula-
tions with regards to gas emission and fuel consumption testing of
the Company’s automobiles. The Company will take preventative
measures to ensure that this will not happen again, and will work
to ensure thorough compliance and strengthen risk management
systems in all fields of its business.
Outstanding issues
Management results of this fiscal year
The Group has established the New Mid-Term Management Plan
SUZUKI NEXT 100 - Strengthening of its management base toward
the 100th anniversary of foundation and the next 100 years -, a
five-year plan from 2015.
The Group will be celebrating its 100th anniversary of foundation
in 2020. In order for the Group to continuous grow for the next
100 years, the Group will put efforts into strengthening of man-
agement base by positioning the next five years as the period to
stabilize the foundation of management. The Group will tackle as
Team Suzuki to globally develop manufacturing base and overhaul
working procedure.
As for the management environment of the Group for FY2015, eco-
nomic recoveries of the US, Europe and India are improving, but on
the other hand, economy of China and ASEAN is remaining stagnant.
And furthermore, there are concerned situations about the influ-
ence of normalization of monetary policy in the US, trend of crude
oil price and others. In Japan, although the economy is recovering
moderately on the back of various measures introduced by the gov-
ernment, its outlook is uncertain with the advancement of the ap-
preciation of the yen since the beginning of 2016 and others.
Under these circumstances, the consolidated net sales of this fis-
cal year (April 2015 to March 2016) increased by ¥165.2 billion
Under the New Mid-Term Management Plan, the Group will unite
as one to enhance corporate value and aim for sustainable
growth.
(
5.5%) to ¥3,180.7 billion compared to the previous fiscal year. The
Japanese domestic net sales decreased by ¥46.7 billion (4.3%) to
1,047.9 billion year-on-year owing to the impact of the hike in
¥
n Basic Policy
the rate of the light motor vehicle tax and decrease in the OEM
By returning to the origin of “Develop products of superior value by
focusing on the customer” as mentioned in the first paragraph of
the mission statement, the Group will strengthen its business base
through the action under the New Mid-Term Management Plan.
Particularly on the quality management, the Group will make the
customers’ safety and security its top priority, develop and pro-
duce high-quality products which the customers can use securely,
and provide after services. In the case where a problem related to
product quality occurs, the Group will respond sincerely to what the
customers say, grasp the problem as early as possible, take appro-
priate measures based on thorough investigation of its cause and
do its utmost to enable our customers to continue using our prod-
ucts securely.
sales. The overseas net sales increased by ¥211.9 billion (11.0%) to
¥2,132.8 billion year-on-year mainly owing to the increase in the
sales of automobile in India.
In terms of the consolidated income, the operating income in-
creased by ¥15.9 billion (8.9%) to ¥195.3 billion year-on-year mainly
owing to the increase in the income in India. The ordinary income
increased by ¥14.8 billion (7.6%) to ¥209.1 billion year-on-year. The
net income attributable to owners of the parent increased by ¥19.8
billion (20.4%) to ¥116.7 billion year-on-year.
Basic policies for profit distribution
The Group will be celebrating its 100th anniversary of foundation
in 2020. The Group will put efforts into strengthening of its man-
agement base, by founding a five-year from 2015 for the Group to
continuous growth for the next 100 years.
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SUZUKI MOTOR CORPORATION
