OFF TO A FLYING START IN 2013

After the marked increase of 23 per cent in full year sales for 2012 at almost 25,000 units Suzuki is pleased to announce some strong results for the first trading month of 2013 which closed at 1,701 units, representing a 44 per cent growth over January last year.

This figure for January was the highest recorded since 2004 and it further reinforces the strong demand for Suzuki’s stylish, fun to drive range of cars. The latest results were led by the three smallest models, Alto, Splash and Swift which are all available VAT free until the end of March. Alto SZ is available for just £5,999 or £99 per month on a Personal Contract Purchase after a deposit of only £499.  Alto owners have no road tax to pay and enjoy low insurance rates from a 4E classification.

2012 GLOBAL PRODUCTION AND SALES CLIMB

The good news continues further afield too, with domestic production in Japan up 11.8 per cent year on year at 1,061,863 units and domestic sales of Suzuki’s small cars close to 585,000 units which was 22.9 per cent up and an increase for the first time in two years.

Production outside of Japan, of which a large proportion was by Maruti Suzuki in India at the Gurgaon and Manesar plants was also strong at 1,831,739 units and 3.1 per cent up year on year. Overseas production also increased for the first time in two years and contributed to a total Global volume of 2,893,602 units.

Maruti Suzuki has around 40 per cent share of the passenger car market with sales just for January reaching 114,000 units. The 1,000^th new car dealership in India was opened last year and there are now almost 3,000 Suzuki service outlets across 1,400 Cities. With the road networks rapidly improving the longer term plan is to have a service outlet located every 25km.

 

SUZUKI GLOBAL NEWS – POSITIVE FINANCIAL RESULTS FOR SUZUKI MOTOR CORPORATION

1. Outline of Financial Results for FY2012 Third Quarter (April 2012 to December 2012)

 The Japanese domestic net sales for the period April 2012 to December 2012 increased by ¥65.4 billion (9.5%) to ¥749.7 billion compared to the corresponding period of the previous fiscal year. For overseas markets, the net sales decreased by ¥40.6 billion (3.6%) to ¥1,073.1 billion year-on-year mainly because of the impact of the exchange rate due to yen appreciation as well as economic stagnation in Europe. As a result, the overall consolidated net sales increased by ¥24.8 billion (1.4%) to ¥1,822.8 billion year-on-year.

In terms of consolidated income, the operating income increased by ¥5.2 billion (5.9%) to ¥92.9 billion year-on-year, and ordinary income increased by ¥4.9 billion (5.2%) to ¥101.3 billion year-on-year. The Group was able to increase operating income by covering the factors of income decrease such as the impact of exchange rate and sales decrease in Europe. Factors for this included an increase of Japanese domestic automobile sales as well as an overall reduction in costs.

Net income increased by ¥7.8 billion (19.2%) to ¥48.4 billion year-on-year, although there was an allocation of ¥15.5 billion to allow for loss on liquidation of subsidiaries and affiliates as an extraordinary loss.

2. The Operating Results by Segmentation

In the automobile business, the Japanese domestic net sales increased year-on-year, as a result of expanding its sales and strengthening products which included the launch of the new model Wagon R.  Overseas net sales decreased year-on-year mainly due to the impact of the exchange rate of the yen as well as a decrease in sales in Europe. As a result, the overall net sales of the automobile business increased by ¥52.3 billion (3.3%) to ¥1,626.5 billion year-on-year. The operating income increased by ¥13.0 billion (15.2%) to ¥98.8 billion year-on-year which marked the highest operating income ever for the third quarter, mainly due to the increase of income in India, Indonesia, and the Japanese domestic automobile market.

In other geographical areas, Japan and Asia increased sales and income due to increased automobile sales. Although Japan is having difficulty in export profitability, it marked the highest operating income ever for the third quarter due to an increase in the Japanese domestic automobile business. Following the second quarter, Europe marked an operating loss due to the persisting economic stagnation.

3. Forecasts for the consolidated operating results-Full Year

As for the forecasts for the consolidated operating results, as a result of reviewing figures such as the foreign exchange rate, the Group has made an upward revision for the full year forecasts of the operating and the ordinary income. There is no change to the target of the net income from the previous forecast due to an allocation of ¥15.5 billion for provision for loss on liquidation of subsidiaries and affiliates as an extraordinary loss in the third quarter.

The Group will work as one to reform in every field to accomplish more than the below forecasts for the consolidated operation by pursuing business activity.