A Message from the Management
A Message from the Management
Thank you very much for your continued support.
Outstanding issues
The automobile industry is undergoing a period of great trans-
formation. In such transformation, it is necessary to open up
the future in long-term outlook by imaging the targeted as-
pect of 10 years and 15 years ahead, and tracing back to the
present to think about what should be done from now.
In or around 2030, there is possibility that India would grow
up to be a market of 10 million units. If we are to maintain
the current market share of 50%, Suzuki would become 5
million units. Suppose the other markets would be 2 million
units, Suzuki as a whole would be 7 million units. This is rath-
er a theoretical figure than a target, but Suzuki will challenge
toward the future growth.
Management results of FY2017
With respect to the management environment of the Group
for FY2017, the economy is recovering moderately as a
whole. On the other hand, there are concerns about the in-
fluence of the US tariff policy, uncertainties about prospects
for the economy of China and developing countries in Asia,
and others. In India, an important market for the Group, the
economy is expanding mainly owing to increase of domestic
consumption. Also in Japan, the economy is recovering mod-
erately on the back of various measures introduced by the
government.
Under these circumstances, the consolidated net sales of the
fiscal year (April 2017 to March 2018) increased by ¥587.7
billion (18.5%) to ¥3,757.2 billion compared to the previous
fiscal year. The Japanese domestic net sales increased by
Also, we believe that fulfilling India would lead to fulfilling oth-
er markets through globally expanding the models developed
for India.
¥
79.2 billion (7.6%) to ¥1,116.7 billion year-on-year mainly
But still, this is a total frontier for the Company, which would
be more than double the present size. The management and
every single one of our employees need to change the way of
thinking and effectively distribute management resources of
people, goods, and capital.
By that means, the activity toward this long-term outlook is a
challenge that dedicates future of Suzuki without extension.
Amidst such conditions, the Group is addressing the following
issues.
owing to increase in automobile sales. The overseas net sales
increased by ¥508.5 billion (23.8%) to ¥2,640.5 billion year-
on-year mainly owing to increase in automobile and motor-
cycle sales in markets including India and Europe.
In terms of the consolidated income, the operating income
increased by ¥107.5 billion (40.3%) to ¥374.2 billion year-on-
year mainly owing to improvement in profit in Asia, Japan, and
Europe. The ordinary income increased by ¥96.1 billion (33.5%)
to ¥382.8 billion year-on-year. The net income attributable to
shareholders of the parent increased by ¥55.7 billion (34.9%)
to ¥215.7 billion year-on-year.
n Quality
The quality problem remains unchanged as the most impor-
tant issue for the Company.
Customer safety and security is the top priority for the Group,
and we are working to develop and produce high-quality
products which customers can use safely and securely and to
provide after-sales services.
In the future, while accurately ascertaining the quality needs
of customers, the Group will maintain a high level of quality
awareness in all departments and will continue to make the
utmost effort to ensure that customers can use our products
safely and securely.
Basic policies for profit distribution
Under the Mid-Term Management Plan SUZUKI NEXT 100
(
from FY2015 to FY2019), the Company prioritises invest-
ment for growth, and set the dividend payout ratio target to
5% or more.
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The Company was able to achieve the FY2019 net sales target
of ¥3,700 billion and operating income margin target of 7% in
the fiscal year, which is ahead of schedule. On the other hand,
improvement of shareholders’ equity ratio remains an impor-
tant issue.
Taking the above into consideration, the Company applied
the dividend payout ratio target of 15% to the annual divi-
dends, which became ¥74.00 per share, up by ¥30.00 per
share from the previous fiscal year, and to the year-end divi-
dends, which became ¥44.00 per share.
The annual dividends of ¥74.00 per share is the eighth con-
secutive increase in annual dividends.
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SUZUKI MOTOR CORPORATION
