fy2018 third quarter financial results - suzuki...suzuki brand of which effect of forex rates...

FY2018 Third Quarter Financial Results

SUZUKI MOTOR CORPORATION 5 February 2019

Ｐ2

… Lower operating income on higher sales

… Kept unchanged

FY2018 Third Quarter Highlights

Third Quarter Results

Full Year Forecast

*1 The highest in the financial results of the first nine months *2 Net income means Net income attributable to owners of the parent

FY2018 9 months FY2017 9 months

(’18/4-12) (’17/4-12) Ratio

Net Sales 2,838.8 2,724.9 ＋113.9 ＋4.2% Increased for 2 consecutive periods, record-high*1

Operating Income 256.5 259.8 （Margin） (9.0%) (9.5%)

Ordinary Income 306.1 284.6 （Margin） (10.8%) (10.4%)

Net Income*2 180.8 164.3 （Margin） (6.4%) (6.0%)

　・Increased net sales…Increase in automobile sales in Japan, and automobile and motorcycle sales in India, etc.

　・Decreased operating income…Impact of depreciation of currencies of emerging countries incl. Ind. Rupee, increase in selling expenses, etc.

　・Increased ordinary income…Partly owing to increase in interest income

Automobile 2,480 2,368 ＋111 ＋4.7%Increase in India, Japan, etc.,

record-high*1

Motorcycle 1,303 1,166 ＋138 ＋11.8% Increase in India, Indonesia, etc.

Record

＋16.5 ＋10.0%

Change

-3.3 -1.3%

＋21.5

WorldwideSales

Volume

＋7.6%

Decreased for first time in 7 periodsConsoli-

datedFinancialResults

Increased for 7 consecutive periods, record-high*1

Increased for 4 consecutive periods, record-high*1

(Billions of yen)

・Revised sales units, foreign exchange rates, etc. but kept net sales and income unchanged

(Thousand units)

Ｐ3

85.1 87.8 86.9

114.4 116.5

82.0

58.0

93.5

869.3 961.8

893.8

1,032.3 987.5

941.9 909.4 961.2

0.0

40.0

80.0

120.0

160.0

1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q0.0

300.0

600.0

900.0

1,200.0

FY2017 FY2018

Trends in Operating Results by Quarters

Trends in Operating Results by Quarters (Billions of yen)

Operating Income

Net Sales

Decreased income in Oct.-Dec. period mainly owing to depreciation of currencies of emerging

countries and increase in selling expenses, Outlook of recovery in Jan.-Mar. period

Forecast

Ｐ4 Consolidated: Net Sales

FY2018

9 months

('18/4-12)

FY2017

9 months

('17/4-12)Change

FY2018

9 months

('18/4-12)

FY2017

9 months

('17/4-12)Change

FY2018

9 months

('18/4-12)

FY2017

9 months

('17/4-12)Change

FY2018

9 months

('18/4-12)

FY2017

9 months

('17/4-12)Change

Japan total 870.4 753.0 +117.4 14.7 15.9 -1.2 10.9 11.1 -0.2 896.0 780.0 +116.0

787.5 675.8 +111.7 14.7 15.9 -1.2 10.9 11.1 -0.2 813.1 702.8 +110.3

ＯＥＭ 82.9 77.2 +5.7 82.9 77.2 +5.7

1,726.2 1,736.6 -10.4 167.5 165.1 +2.4 49.1 43.2 +5.9 1,942.8 1,944.9 -2.1 -110.2

Europe 329.4 332.3 -2.9 26.5 32.0 -5.5 11.2 11.8 -0.6 367.1 376.1 -9.0 +1.7

N. America 0.9 1.1 -0.2 21.1 22.8 -1.7 25.7 19.4 +6.3 47.7 43.3 +4.4 -0.3

Asia 1,230.4 1,223.7 +6.7 96.2 83.3 +12.9 4.8 4.4 +0.4 1,331.4 1,311.4 +20.0 -105.9

India 947.0 924.7 +22.3 40.7 33.9 +6.8 0.4 0.3 +0.1 988.1 958.9 +29.2 -79.8

Other 283.4 299.0 -15.6 55.5 49.4 +6.1 4.4 4.1 +0.3 343.3 352.5 -9.2 -26.1

Other 165.5 179.5 -14.0 23.7 27.0 -3.3 7.4 7.6 -0.2 196.6 214.1 -17.5 -5.7

Grandtotal 2,596.6 2,489.6 +107.0 182.2 181.0 +1.2 60.0 54.3 +5.7 2,838.8 2,724.9 +113.9 -110.2

of which

effect of

ForEX rates

conversion

MotorcycleAutomobile Marine, etc.（Billionsof yen）

Suzukibrand

of whicheffect of

ForEX ratesconversion

-6.9 -110.2-0.2-103.1

Total

Overseastotal

Note: North America…United States and Canada Automobile in North America…sales of parts and accessories, etc.

*The highest in the financial results of the first nine months

Increase in each segment, record-high* in domestic and consolidated despite decrease in overseas

Ｐ5

259.8 256.5

＋48.8 ＋16.5

＋8.1 -40.2

-23.9 -12.6

of which raw materials -12.3

Change in sales, model mix

Cost reduction

Decrease of depreciation expenses

Increase of various

expenses Effect

of ForEX rates

Increase of

R&D expenses

Operating income -3.3

Factors of increase ＋73.4 Factors of decrease -76.7

Consolidated:

Factors of Change in Operating Income

(Billions of yen)

FY2017 First 9 months

Operating income

FY2018 First 9 months

Operating income

Ｐ6 Consolidated: Foreign Exchange Rates

* Mex. Peso -1.4bln yen, Aus. Dollar -0.7bln yen, Russian Ruble -0.6bln yen, etc.

US Dollar 111 yen 112 yen -1 yen -0.3bln yen

Euro 129 yen 129 yen +0 yen ＋0.9bln yen

Indian Rupee 1.61 yen 1.74 yen -0.13 yen -15.5bln yen

100Indonesian Rupiah

0.77 yen 0.84 yen -0.07 yen -2.0bln yen

Thai Baht 3.41 yen 3.33 yen +0.08 yen -0.3bln yen

Pak. Rupee 0.90 yen 1.06 yen -0.16 yen -3.4bln yen

Others －－－ -3.3bln yen *

Total -23.9bln yen

Change

　　　　　　　　　　　　　　　　　　　　　　

FY20179 months

('17/4-12)

FY20189 months

('18/4-12)

Effect of ForEX ratesin operating income

Ｐ7

（Non-consolidated） 42.1bln yen 36.5bln yen ＋5.6bln yen

（Subsidiaries） 149.1bln yen 86.7bln yen ＋62.4bln yen

191.2bln yen 123.2bln yen ＋68.0bln yen

106.3bln yen 114.4bln yen -8.1bln yen

111.4bln yen 98.8bln yen ＋12.6bln yen

Depreciation Expenses

R&D Expenses

Change

Capital Expenditures

FY2018 9 months（'18/4-12）

FY2017 9 months（'17/4-12）

FY2018 Q3

('18/12) ('17/12) Change ('18/3) Change

Interest-BearingDebt balance 406.8bln yen 656.1bln yen -249.3bln yen 577.9bln yen -171.1bln yen

ConsolidatedSubsidiaries 131 131 ±0 131 ±0

Equity Method Affiliates 28 31 -3 31 -3

Employees 68,040 64,817 +3,223 65,179 +2,861

FY2017 Q3 FY2017 Q4

Consolidated: Capital Expenditures, etc.

Ｐ8

600.8

404.0

＋240.1 -208.0

-225.7

Consolidated： Cash Flows

(Billions of yen)

Cash Balance -196.8

of which CB redemption -180.8

Free C/F ＋32.1

Operating

Ｃ／Ｆ

Investing

Ｃ／Ｆ

Financing

Ｃ／Ｆ

Other

-3.2

At beginning

of period

At end

of period

Ｐ9

248.3

1.6 9.9

244.1

0.1 12.3 0.0

60.0120.0180.0240.0300.0

《Automobile》

《Marine, etc.》

《Motorcycle》

2,489.6

181.0 54.3

2,596.6

182.2 60.0 0.0

500.0

1,000.0

1,500.0

2,000.0

2,500.0

3,000.0

四輪車二輪車特機等

Net sales ＋107.0(＋4.3%)

Operating income -4.2(-1.7％)

Operating income ＋2.4(＋23.7%)

Net sales ＋5.7(＋10.5%)

Operating income -1.5(-91.5%)

FY2017 FY2018 ‘17/4-12 ‘18/4-12

FY2017 FY2018 ‘17/4-12 ‘18/4-12

FY2017 FY2018 ‘17/4-12 ‘18/4-12

Access 125 （India）

V-Strom650XT

SWIFT

DF350A

Spacia Custom

Net sales ＋1.2(＋0.7%)

Consolidated: Operating Results by Segment (Net sales, Operating income)

（Billions of yen）

Ｐ10

FY2017 FY2018 ‘17/4-12‘18/4-12

《Asia》

《Other》

《Europe》

《Japan》

Net sales ＋68.9(＋4.6%)

1,482.1

456.4

1,408.1

119.6

1,551.0

434.5

1,419.7

130.2

0.0

300.0

600.0

900.0

1,200.0

1,500.0

1,800.0

Net sales ＋11.6(＋0.8%)

Net sales -21.9(-4.8%)

Net sales ＋10.6(＋8.9%)




Operating income -19.0(-13.5%)

(209.4)

(136.4) (121.0)

(78.0)

1,231.0 1,341.6

320.0 313.5

1,330.1 1,357.0 (62.7) (251.1)

FY2017 FY2018 ‘17/4-12‘18/4-12

FY2017 FY2018 ‘17/4-12‘18/4-12

FY2017 FY2018 ‘17/4-12‘18/4-12

Consolidated: Operating Results by Geographic Region (Net sales, Operating income)


Note about triangle trade ： Conventionally, net sales of Hungary production models for European subsidiaries were eliminated as they were intraregional subsidiary trade. But because trade type was changed to triangle trade via Japan, and net sales to Japan and net sales from Japan to Europe are not eliminated, net sales of Japan and Europe are shown larger. The same trade is also applied in Asia.

Net sales (excluding triangle trade)

111.5

12.6

140.6

3.4

112.6

14.7

121.6

4.3 0.0

50.0100.0150.0

Ｐ11

FY 2017 Result Change Previous forecast Change

3,800.0 3,757.2 ＋42.8 3,800.0Domestic Sales 1,200.0 1,116.7 ＋83.3 1,190.0 ＋10.0Overseas Sales 2,600.0 2,640.5 -40.5 2,610.0 -10.0

350.0 374.2 -24.2 350.0390.0 382.8 ＋7.2 390.0

220.0 215.7 ＋4.3 220.0

Change in sales, model mix ＋42.8 ＋103.0 ＋40.8 ＋2.0Cost reduction ＋27.0 ＋26.6 ＋27.0Effect of ForEX rates -42.0 ＋38.3 -40.0 -2.0Decrease of depreciation ＋12.5Increase of various expenses -32.0 -65.0 -32.0Increase of R&D expenses -20.0 -7.9 -20.0

Total -24.2 ＋107.5 -24.2

250.0 213.4 ＋36.6 250.0150.0 150.9 -0.9 150.0160.0 139.4 ＋20.6 160.0

Change in O

pera

ting Incom

e

LatestForecast


Net sales

R&D Expenses

Comparison with FY 2017 result Comparison with previous forecast

Capital Expenditures

Depreciation Expenses

Operating income

Ordinary income

Net income attributableto owners of the parent

Consolidated: Full Year Forecasts

Reflected third quarter results and outlook of sales units, foreign exchange rates, etc.

Ｐ12 Consolidated: Forecasts for Operating Results

(Foreign Exchange Rates)

Apr.-Dec.Results

Jan.-Mar.Forecasts

Full-YearForecasts

ForEXImpact

Full-YearResults Change

Full-YearForecasts Change

U.S. Dollar 111 yen 105 yen 110 yen -0.9bln yen 111 yen -1 yen 108 yen ＋2 yen

Euro 129 yen 120 yen 127 yen -3.4bln yen 130 yen -3 yen 130 yen -3 yen

IndianRupee

1.61 yen 1.50 yen 1.58 yen -23.7bln yen 1.73 yen -0.15 yen 1.56 yen ＋0.02 yen

100IndonesianRupiah

0.77 yen 0.75 yen 0.77 yen -2.3bln yen 0.83 yen -0.06 yen 0.77 yen

Thai Baht 3.41 yen 3.40 yen 3.41 yen -0.2bln yen 3.36 yen ＋0.05 yen 3.35 yen +0.06 yen

Pak.Rupee

0.90 yen 0.75 yen 0.86 yen -5.0bln yen 1.04 yen -0.18 yen 0.89 yen -0.03 yen

-6.5bln yen

-42.0bln yenEffect of ForEX ratestotal

Prev. Forecasts(2018.4～2019.3)

Latest Forecasts（2018.4～2019.3）

Others

Year-on-Year(2017.4～2018.3)

Reflected actual rates

Ｐ13

＋98（＋4.0%）

717 760

133 125

300 271 2

2

FY2017 FY2018

1,288 1,381

2,440 2,539

251 261 43 49 419 394

109 83 1 0

FY2017 FY2018

823 787

-36（-4.4%）

’17/4-12 ’18/4-12 ’17/10-12 ’18/10-12

≪Nine Months Comparison≫ ≪ Of Which

Three Months Comparison ≫

（Thousand units）

of which CBUs:705

of which CBUs:743

India

Europe

Japan

Asia Others

Asia

Europe Japan

Others

India

Production Volume of Automobiles

Record-high for Apr.-Dec. period, but decrease in Oct.-Dec. period

・Gujarat Plant No.2 in India started operation from January

700 700

800 800

250 250 250

1,750 2,000

0

1,000

2,000

'18/12 '19/1

Automobile production ability in India (Two shifts, Thousand units)

Gujarat No.2 No.1 Manesar Plant Gurgaon Plant

●Topic

●Third quarter (Apr.-Dec.) global production ・Record-high with 2,539 thousand

units (+4.0% year-on-year) for Apr.-Dec. period

・Decreased year-on-year with 787 thousand units (-4.4%) for Oct.-Dec. period mainly owing to decrease in India

Ｐ14

＋111（＋4.7%）

468 514

204 201

333 298

137 141

FY2017 FY2018

1,226 1,325

2,368 2,480

148 165 65 62

401 406

124 99 50 49

FY2017 FY2018

787 780

-7（-0.9%）

’17/4-12 ’18/4-12 ’17/10-12 ’18/10-12

Sales Volume of Automobiles




Asia

Europe

Japan

Others

India

Asia

Europe Japan

Others

India

●Third quarter (Apr.-Dec.) global sales ・Record-high with 2,480 thousand

units (+4.7% year-on-year) ・ Increase in Japan and India ・Decrease in Asia mainly owing to

decrease in China

●Oct.-Dec. global sales ・Decreased year-on-year with

780 thousand units (-0.9%) ・Flat on the year in India, which

had been a global sales leader, despite continuous increase in Japan

Record-high for Apr.-Dec. period, but decrease in Oct.-Dec. period

Ｐ15

’17/4-12 ’18/4-12

390 421

77 93

FY2017 FY2018

＋46（＋9.9%）

468 514

’17/10-12 ’18/10-12

124 137

23 28

FY2017 FY2018

＋18（＋11.9%）

148 165

Sales Volume of Automobiles by Geographic Region (Japan)




Mini-vehicle

Sub-compact and standard-sized vehicle

Mini-vehicle

Sub-compact and standard-sized vehicle

Contribution of models incl. Spacia and XBEE

●Topics

●Third quarter (Apr.-Dec.) Japan sales ・514 thousand units (+9.9% year-

on-year), increase in both mini and compact mainly owing to sales contribution of models including Spacia and XBEE

・Facelift of Escudo in December with fulfilled safety performance

・Special equipment model Mode introduced to Alto Lapin in Dec.

・Launched new Spacia Gear in Dec.

Ｐ16

-3（-1.6%）

’17/4-12 ’18/4-12

28 27

22 24

26 27

20 20 6 6

102 97

FY2017 FY2018

201 204

-3（-4.2%）

’17/10-12 ’18/10-12

9 9 7 9 7 6

8 7 2 2

32 29

FY2017 FY2018

62 65




Germany

Italy

UK

Other

France

Spain

Germany Italy

Other

France Spain

UK

Sales Volume of Automobiles by Geographic Region (Europe)

●Third quarter (Apr.-Dec.) European sales

Decreased partly owing to impact of production decrease in Hungary

・Europe overall was contributed by sales of Swift and Ignis, but decreased year-on-year with 201 thousand units (-1.6%) partly owing to impact of production decrease in Hungary

Ｐ17

103 90

181 189

10 12 66 65 38 44 3 6

FY2017 FY2018

＋98（＋8.0%）

’17/4-12 ’18/4-12

323 304

547 641

45 36 190

194 117

132 6 16

FY2017 FY2018

1,325 1,226

Mini

Compact

Midsize

UV

Vans

LCV

＋5（＋1.3%）

’17/10-12 ’18/10-12

406 401

Mini

Compact Midsize UV Vans LCV

※LCV=Light Commercial Vehicles UV =Utilities Vehicles

Sales Volume of Automobiles by Geographic Region (India)




Record-high for Apr.-Dec. period, but flat on the year for Oct.-Dec. period

●Topics

●Third quarter (Apr.-Dec.) Indian sales

・Record-high for Apr.-Dec. period with 1,325 thousand units, but flat on the year for Oct.-Dec. period

・Full-model change of Ertiga in Nov. ・Swift achieved accumulated sales of

2 million units in Nov. since its launch in May 2005

・Swift won Indian Car of the Year 2019 in Dec. for the third consecutive generation model

・CNG models achieved accumulated

sales of 50,000 units in Dec. since its launch in Oct. 2010

・Full-model change of WagonR in Jan.

Ｐ18

85 88

20 22

15 15 3

9 5 5

FY2017 FY2018

’17/4-12 ’18/4-12

＋11（＋8.6%）

128 139

30 29

7 8 5 5 1 4 2 2

FY2017 FY2018

’17/10-12 ’18/10-12

＋1（＋2.7%）

46 48

Sales Volume of Automobiles by Geographic Region (ASEAN)



（Thousand units） Myanmar Vietnam

Thailand

Indonesia

Philippines

Myanmar Vietnam

Thailand

Indonesia

Philippines

●Topic

●Third quarter (Apr.-Dec.) ASEAN sales

※ASEAN； Total of 5 countries - Indonesia, Thailand, the Philippines, Myanmar and Vietnam

Increased mainly owing to Indonesia and Myanmar

・Total of 5 ASEAN countries* 139 thousand units (+8.6% year-on-year)

・Indonesia increased by 3.1% partly owing to strong sales of commercial vehicles

・Thailand increased by 13.8% mainly owing to increase of Swift, etc.

・Myanmar tripled year-on-year owing to growth in overall market

・Export of all new Ertiga from Indonesia began in September

Ｐ19

・Ceremony held on 26 November at Pak Suzuki’s plant, with Chairman Osamu Suzuki attending to welcome guests including Abdul Razak Dawood, Adviser to Prime Minister of Pakistan

(Suzuki’s automobile production in Pakistan) ・1975: Suzuki’s first overseas automobile

production started ・1982: Production started at Pak Suzuki ・Producing models mainly based on Japan’s

minicars equipped with 800cc to 1,000cc engines

0

500

1,000

1,500

2,000

0

50

100

150

200

83 90 00 10 18

FY Accum.

*Based on units completed at the local plant. FY2018 is Apr.-Dec. results.

FY (Thousand

units)

Accum. (Thousand

units)

FY

MEHRAN

WagonR

CULTUS

RAVI

Accumulated Production of 2 Million Units for Pak Suzuki

Achieved in August 2018, 36 years since starting production from 1982

Ｐ20

＋85（＋6.9%）＋138（＋11.8%）

111 83 3

3

29 39

FY2017 FY2018

1,185

1,224 1,309

48 43 33 33 27 28

916

142

129

FY2017 FY2018

1,166 1,303

’17/4-12 ’18/4-12 ’17/4-12 ’18/4-12

・Mitsuo Ito, first Japanese winner at Isle of Man TT in 1963, inducted into 1st MFJ Motorcycle Sport Hall of Fame of Japan in Dec.

1,081 1,070

Production and Sales Volume of Motorcycles

Increased production and sales ≪Nine Months Production

Volume Comparison≫ ≪ Nine Months Sales

Volume Comparison≫


Other

Asia

North America

Japan

Other

Asia

North America

Europe Japan

●Topic

●Third quarter (Apr.-Dec.) motorcycles ・Global production increased by

6.9% year-on-year to 1,309 thousand units

・Global sales increased by 11.8% year-on-year to 1,303 thousand units

*Overseas motorcycle sales volume was counted in wholesales units in some areas, but from this third quarter results, all sales volume are counted in retail sales (previous year results are also changed to retail sales).

Ｐ21

352 472

296

283

117

137 55

70 15

14 81

94

FY2017 FY2018

＋104（＋9.6%）＋154（＋16.8%）

391 518

399 303

111 141 70

122 41

16 69

84

FY2017 FY2018

1,081 1,185

916

1,070

’17/4-12 ’18/4-12 ’17/4-12 ’18/4-12

Motorcycles: Breakdown of Asia

≪Nine Months Production Volume Comparison≫

≪ Nine Months Sales Volume Comparison≫


●Topic

India

China

Indonesia

Philippines

Other Thailand

India

China

Indonesia

Philippines

Other Thailand

●Third quarter(Apr.-Dec.)Asia

Increase in India, Indonesia, the Philippines, etc.

・Asian sales increased by 16.8% year-on-year to 1,070 thousand units owing to the increase in countries including India, Indonesia, and the Philippines

・India expanded (+34.3%) owing to strong sales of Access and partly owing to the launch of premium scooter Burgman Street in July

・Suzuki Motorcycle India achieved accumulated production of 4 million units in Dec. since starting production in 2006 (12 years)

Ｐ22

Forecast Forecast

(FY2018) (FY2017) Change Ratio (FY2018) (FY2017) Change Ratio

＜Automobile＞Japan 1,021 971 ＋50 +5.1% ＋11 718 668 ＋50 +7.5% ＋21

Europe 181 180 ＋1 +0.4% ＋9 280 281 -1 -0.3% －

Asia 2,190 2,185 ＋5 +0.2% -102 2,144 2,093 ＋51 +2.4% -29

Others 2 2 -0 -12.5% -2 185 182 ＋3 +1.9% -3

Total 3,394 3,338 ＋56 +1.7% -84 3,327 3,224 ＋103 +3.2% -11

＜Motorcycle＞Japan 116 152 -36 -23.8% -7 56 60 -4 -5.9% -7

Europe －－－－－ 46 43 ＋3 +8.0% -2

N.America 4 4 -0 -6.6% － 36 35 ＋1 +2.8% -2

Asia 1,547 1,431 ＋116 +8.1% ＋2 1,434 1,254 ＋180 +14.4% ＋36

Others 50 39 ＋11 +28.1% ＋1 169 184 -15 -8.4% ＋8

Total 1,717 1,627 ＋90 +5.5% -4 1,741 1,576 ＋165 +10.5% ＋33

（Thousandunits）

FY2017 Results FY2017 Results Revisedunits frompreviousforecast

Production SalesRevised

units frompreviousforecast

Reflected third quarter results and future outlook

Downward revision of Indian automobile sales from +8% in the previous forecast to +6%

Production and Sales: FY2018 Business Forecasts

The Next-Gen All-new WagonR

(India)

FY2018 Third Quarter Financial Results

SUZUKI MOTOR CORPORATION

Ｐ24

Caution with respect to Forward-Looking Statements

The forward-looking statements mentioned in this presentation are based on currently available information and assumptions, contain risks and uncertainty and do not constitute guarantees of future achievement.

Please note that the future results may greatly vary by the changes of various factors.

Those factors, which may influence the future results, include economic conditions and the trend of demand in major markets and the fluctuations of foreign exchange rates

(mainly U.S. dollar/Yen rate, Euro/Yen rate,

Indian Rupee/Yen rate). [English translation from the original Japanese language document]

fy2018 third quarter financial results - suzuki...suzuki brand of which effect of forex rates...

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