Strong Financial Result for Suzuki

SHIZUOKA, JAPAN – May 14, 2012: Suzuki Motor Corporation has recorded another strong financial result for the 2011 fiscal year (April 2011 to March 2012)

This fiscal year, the Japanese domestic market achieved its highest-ever net sales – Ľ986.8 billion (up 5.3% year-on-year) – on recovering in the second half of the year from the slump in sales in the first half caused by the earthquake.

Overseas net sales fell by Ľ145.4 billion (8.7%) to Ľ1,525.4 billion year-on-year due to lower car sales in India, coupled with the effect of the yen's appreciation. As a result, consolidated net sales for FY2011 decreased by Ľ96.0 billion (3.7%) to Ľ2,512.2 billion year-on-year.

In terms of consolidated income, operating income increased by Ľ12.4 billion (11.6%) to Ľ119.3 billion year-on-year after allowing for the factors decreased income (such as decreased sales and the impact of the exchange rate) and increased income (such as cost reductions, decrease in expenditure and less depreciation).

Ordinary income increased by Ľ8.1 billion (6.6%) to Ľ130.6 billion year-on-year. Net income increased by Ľ8.7 billion (19.3%) to Ľ53.9 billion year-on-year after allowing for the increase in tax outlay due to the reversal of deferred tax assets involved in the lowering of tax rates.

Operating income, ordinary income and net income all rose for the third consecutive fiscal year. In particular, the ordinary income rate was the highest ever (at 5.2%) since consolidated financial results were first published.

In view of the fact that consolidated operating results improved compared with earlier forecasts, the year-end dividend is set to be up by Ľ1.00 per share in relation to previous forecasts to Ľ8.00 per share (the previous year-end dividend was Ľ7.00 per share). As a result, the annual dividend will be Ľ15.00 per share, up by Ľ2.00 per share from the previous fiscal year.

Operating results by segmentation
In the motorcycle business, although overall sales in North America increased, mainly due to the decrease in European sales, sales decreased by Ľ2.9 billion (1.1%) to Ľ254.8 billion year-on-year.

As for operating income, although it improved by Ľ8.4 billion year-on-year, there was an operating loss of Ľ2.4 billion due to the impact of the yen appreciation and the severe floods in Thailand.

In the automobile business, Japanese domestic market sales increased year-on-year on recovery from the first half decline due to the impact of the earthquake, thanks to a strengthening of the line-up and concerted efforts to boost sales.

Overseas sales decreased year-on-year due to the impact of the yen appreciation, the fall in exports, especially to Europe, and lower sales in India. Consequently, automobile sales decreased by Ľ93.0 billion (4.0%) to Ľ2,209.0 billion year-on-year. However, operating income increased by Ľ3.5 billion (3.2%) to Ľ114.5 billion year-on-year, mainly due to cost reductions, decreases in expenditure, and lower depreciation.

Sales of marine and power products, etc., were at almost the same level as the previous fiscal year, i.e. Ľ48.4 billion, but operating income increased by Ľ0.5 billion (7.0%) to Ľ7.2 billion year-on-year.