Suzuki Announces the Financial Results for FY2016 Third Quarter (April 2016 to December 2016)
- Decreased net sales and increased income
- Forecasts for operating results remain unchanged

1. Outline of the Financial Results for FY2016 Third Quarter

The consolidated net sales of this third quarter (April 2016 to December 2016) decreased by ¥103.6 billion (4.4%) to ¥2,252.0 billion compared to the corresponding period of the previous fiscal year. The Japanese domestic net sales decreased by ¥28.2 billion (3.8%) to ¥725.3 billion year-on-year mainly owing to decrease in minivehicle and OEM sales, despite increase in compact vehicle sales. The overseas net sales decreased by ¥75.4 billion (4.7%) to ¥1,526.7 billion year-on-year mainly owing to decrease in automobile sales in Indonesia and Pakistan, and the impact of the exchange rate, despite increase in automobile sales in areas including India and Europe.

In terms of the consolidated income, although there were impact of the exchange rate, the operating income increased by ¥21.2 billion (14.4%) to ¥167.4 billion year-on-year mainly owing to increase in automobile sales in India and Europe. The ordinary income increased by ¥17.4 billion (10.7%) to ¥180.2 billion year-on-year. The net income attributable to owners of the parent increased by ¥31.1 billion (30.4%) to ¥133.4 billion year-on-year partly owing to increase in gain on sales of investment securities, in addition to increase in the ordinary income.

2. The Operating Results by Segment

In the automobile business, the Japanese domestic automobile net sales decreased year-on-year mainly owing to decrease in minivehicle and OEM sales, despite making efforts to expand sales and strengthen products such as by adding variants installed with newly-developed hybrid system to the Solio and Solio Bandit compact cars, and introducing new model, the Spacia Custom Z to the Spacia minicar. The overseas automobile net sales decreased year-on-year mainly owing to decrease in sales in Indonesia and Pakistan, and the impact of the exchange rate, despite increase in sales in areas including India and Europe. Consequently, the net sales of the automobile business decreased by ¥71.6 billion (3.4%) to ¥2,059.1 billion year-on-year. With respect to the operating income, although there were impact of the exchange rate, it increased by ¥15.7 billion (10.7%) to ¥162.1 billion year-on-year mainly owing to increase in sales in India and Europe.

In the motorcycle business, the net sales decreased by ¥29.7 billion (17.2%) to ¥143.2 billion year-on-year mainly owing to decrease in sales in Europe, North America, and Asia, and the impact of the exchange rate. The operating loss of ¥10.1 billion in the previous fiscal year became an operating loss of ¥3.6 billion.

In the marine and power products, etc. business, the net sales decreased by ¥2.3 billion (4.5%) to ¥49.7 billion year-on-year mainly owing to the impact of the exchange rate, despite increase in the sales of the outboard motors in the North America. The operating income decreased by ¥1.0 billion (10.1%) to ¥8.9 billion year-on-year.

With respect to the operating income by geographical areas, Japan increased by ¥1.5 billion (2.5%) to ¥61.3 billion, Europe increased by ¥4.2 billion (66.7%) to ¥10.5 billion, and Asia increased by ¥9.2 billion (11.2%) to ¥91.5 billion year-on-year respectively, mainly owing to the effect of improving sales mix of automobiles in Japan, Europe, and India.

3. Forecasts for the Consolidated Operating Results-Full Year

With respect to the forecasts for the consolidated operating results, since the future outlook such as the exchange rate is unclear, they remain unchanged from the previous forecasts. The Group will work as one to reform in every field and pursue the business activity to accomplish more than the below forecasts for the consolidated operating results.

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