Suzuki announces Financial Results for FY2012 Second Quarter
(April 2012 to September 2012)
- Net sales at the same level as the corresponding period of the previous fiscal year.
- Increased operating income and ordinary income for the first time in two corresponding periods.
- Increased net income for three consecutive corresponding periods.
- An increase of 1 yen per share in interim dividends.

1. Outline of Financial Results for FY2012 Second Quarter (April 2012 to September 2012)

The Japanese domestic net sales of the second quarter (April 2012 to September 2012) increased to ¥515.1 billion by ¥66.4 billion (14.8%) compared to the corresponding period of the previous fiscal year, when the production dropped due to the impact of the Great East Japan Earthquake. As for the overseas, the net sales decreased by ¥65.8 billion (8.5%) to ¥711.7 billion year-on-year mainly because of the impact of the exchange conversion due to the yen appreciation, and the economic stagnation in Europe. As a result, the overall consolidated net sales was at the same level as the corresponding period of the previous fiscal year at ¥1,226.8 billion.

In terms of the consolidated income, the operating income increased by ¥1.4 billion (2.2%) to ¥66.1 billion year-on-year, the ordinary income increased by ¥2.4 billion (3.6%) to ¥70.0 billion year-on-year, and the net income increased by ¥9.9 billion (30.9%) to ¥41.9 billion year-on-year. The Group was able to increase the operating income by covering the factors of income decrease such as the impact of the exchange rate and decrease of overseas sales with the factors of income increase such as increase of Japanese domestic automobile sales and cost reduction.

The Operating income and the ordinary income increased for the first time in two corresponding periods, and the net income increased for three consecutive corresponding periods.

As for the interim cash dividends, the Company decided to pay 8 yen per share (7 yen per share in FY2011 interim dividends), an increase of 1 yen per share from the latest forecast, on the basis that consolidated operating results for FY2012 Second Quarter improved from the forecasts.

2. The Operating Results by Segmentation

In the motorcycle business, the net sales decreased by ¥25.0 billion (18.1%) to ¥112.7 billion year-on-year due to the sales decrease in Europe, North America, and Asia. The operating income of ¥0.7 billion in the corresponding period of the previous fiscal year became an operating loss of ¥5.9 billion.

In the automobile business, the Japanese domestic net sales largely increased from the corresponding period of the previous fiscal year, when the production dropped due to the impact of the Great East Japan Earthquake. This is a result of expanding its sales and strengthening the products such as by the launch of the new WagonR. The overseas net sales decreased year-on-year mainly because of the exchange conversion due to the impact of the yen appreciation, and decrease of sales in Europe. As a result, the overall net sales of the automobile business increased by ¥27.1 billion (2.5%) to ¥1,089.1 billion year-on-year. The operating income increased by ¥8.9 billion (14.9%) to ¥69.2 billion. The Manesar Plant of the Maruti Suzuki India Limited has resumed its production from August 21, 2012, and has already returned to its normal operation standard.

In the marine and power products, etc. business, the net sales decreased by ¥1.5 billion (5.5%) to ¥25.0 billion mainly due to the decrease of exports to Europe. The operating income decreased by ¥0.9 billion (25.1%) to ¥2.8 billion.

As for the operating results by geographical areas, although Japan is having difficulty in export profitability, it marked the highest operating income ever for the second quarter mainly due to the increase of income in the Japanese domestic automobile business. Europe and Asia decreased income, largely due to the impact of the economic stagnation in Europe and the exchange rate in Asia.

3. Forecasts for the consolidated operating results

As for the forecasts for the consolidated operating results, although the Group has reviewed figures such as the foreign exchange rate and the sales units, there are no changes to the targets of the net sales and the income.
The Group will work as one to reform in every field to accomplish more than the below forecasts for the consolidated operation by pursuing the business activity.

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