Economic Downturn, Demand Fluctuations and Dependence on Overseas Emerging Markets

「Operating profit decreased by ¥58.5 billion, or 17.5%, year on year to ¥276.5 billion. This reflected a solid performance in the Japanese automobile business, offset by changes in market conditions, higher raw material prices and lower automobile unit sales in India and Europe.」

「In the consolidated fiscal year, sales in India accounted for slightly more than 40% of consolidated net sales across the entire Indian business, including the automobile, motorcycle and other businesses.」

「Other regions reported lower revenue and profit due to lower outboard motor sales in North America, among other factors.」

「Other regions reported lower revenue and profit due to lower sales in Africa and Central and South America, among other factors.」

「Other regions reported lower revenue and profit due to lower sales in Africa and Central and South America, among other factors.」

「In the Group's results for the consolidated fiscal year, the domestic automobile business accounted for 25% of consolidated net sales and the Indian automobile business for 37%.」

「In view of uncertainty over the impact of shortages in the supply of components, including semiconductors, and the increasing risk of a global economic recession, the company plans to maintain the current borrowing level for the time being.」

「In light of the shortage of parts, including semiconductors, and the heightened risk of a global economic recession, the Company intends to maintain its current level of borrowings for the time being.」

「In the Group's results for the consolidated fiscal year, the domestic automobile business accounted for 29% of consolidated net sales and the Indian automobile business for 31%.」

「By location, all regions reported increases in revenue and profit during the cumulative second quarter period, while Japan, Europe and Asia reported lower profit during the second quarter.」

「In the Group's results for the consolidated fiscal year, the domestic automobile business accounted for 36% of consolidated net sales and the Indian automobile business for 29%. Accordingly, if demand, market conditions or competition with industry peers relating to these two businesses exceeds foreseeable levels, the Group's operating results and financial position may be materially affected.」

「During the subsequent third quarter (October to December), production and sales activities continued to normalize, supported by a strong festival season in India. However, the Group's operating environment remains extremely uncertain due to the spread of COVID-19 variants, semiconductor shortages and rising raw material prices.」

「During the cumulative second quarter period (April to September), the Group's operating environment remained affected by a worldwide economic slowdown caused by the spread of COVID-19.」

「The automobile business had been roughly evenly divided among Japan, India and other regions in the same period of the previous year. Sales declined 27.6% in Japan, 83.0% in India and 54.3% in other regions, resulting in total sales of ¥367.5 billion, down ¥449.6 billion, or 55.0%, year on year.」

「In India, which accounts for approximately one-third of consolidated net sales, the overall market remained sluggish due to tighter lending and higher insurance premiums, among other factors. Recovery has been delayed further by higher selling prices accompanying tighter environmental regulations. The Company continued efforts to stimulate the market, including launching new models and offering price reductions funded by corporate tax rebates during the festival season, but sales in the fiscal year ending March 2020 were 1,414 thousand units, or 82% of the previous year's level, substantially below the previous year.」

「Results for the cumulative nine months of the third quarter were lower in both revenue and profit due to the delayed recovery of India's automobile market and the impact of foreign exchange rates, among other factors. Consolidated net sales decreased by ¥212.7 billion, or 7.5%, year on year to ¥2,626.1 billion. Operating profit decreased by ¥86.1 billion, or 33.6%, to ¥170.4 billion, ordinary profit decreased by ¥111.3 billion, or 36.4%, to ¥194.8 billion, and net profit attributable to owners of the parent decreased by ¥64.2 billion, or 35.5%, to ¥116.6 billion.」

「In India, an important market for the Group, the economic deterioration that began in the second half of the previous fiscal year has persisted, and the Group is awaiting a recovery driven by various government policies.」

「Results for the cumulative first quarter were lower in both revenue and profit, reflecting reduced production caused by the rebuilding of the inspection system in Japan and lower sales due to weakness in India's overall automobile market.」

「Operating profit decreased by ¥49.8 billion, or 13.3%, year on year to ¥324.4 billion, mainly due to the impact of depreciation in emerging-market currencies, including the Indian rupee, and increases in various expenses.」

「However, the performance of the automobile business in Thailand has remained weak due to the slowdown in the domestic Thai market and the appreciation of the Thai baht. During the consolidated fiscal year, the future recoverability of the operating assets of Suzuki Motor (Thailand) Co.,Ltd. was assessed, and because their recoverable amount fell below their carrying amount, an impairment loss was recognized as an extraordinary loss.」

「Prolonged economic stagnation, deterioration in the global economy and financial crises, and declining consumer purchasing sentiment may lead to a substantial decrease in demand for the Group's products, including motorcycles, automobiles and outboard motors, adversely affecting the Group's operating results and financial position.」