(3) Initiatives to Further Improve the Effectiveness of the Board of Directors in FY2026

(i) The secretariat of the Board of Directors involved in setting strategic agenda items for the coming year and discussed the direction of such agenda items with management, other relevant officers and the proposing departments.
[Examples of agenda items]

• Regional business strategies, product strategies, supply chain strategies and technology strategies
• Further promotion of diversity
• Progress of the Mid-Term Management Plan (including capital allocation)

(ii) For agenda items to be submitted to the Board of Directors, the Company also confirms during deliberations at the Executive Committee and other meetings whether the matters are suitable for active discussion at the Board of Directors.
(iii) Strengthen follow-up after matters have been deliberated by the Board of Directors.
(iv) Enhance the information provided to Outside Directors and Outside Audit & Supervisory Board Members.The Company will continue to improve the effectiveness of the Board of Directors through the PDCA cycle.

The PDCA cycle for evaluating the effectiveness of the Board of Directors and future initiatives

Audit & Supervisory Board

The Audit & Supervisory Board determines the audit policies and plans of the Audit & Supervisory Board, as well as the auditing standards. These actions are taken with the aim of realizing the sound and sustainable growth of the Company and the Suzuki group, creating mid- to long-term corporate value, and establishing a high-quality corporate governance system that responds to social trust. As a stand-alone body, Audit & Supervisory Board Members conduct audits to ensure proper management conforming to the standards for Audit & Supervisory Board Members’ audit established by the Audit & Supervisory Board and offer appropriate opinions to the management team.

Structure and procedures of the Audit & Supervisory Board

The Audit & Supervisory Board is comprised of five members, two Full-time Audit & Supervisory Board Members with executive experience and three Outside Audit & Supervisory Board Members with high expertise and extensive experience in areas such as finance and accounting technology and legal affairs.

Audit & Supervisory Board Members' audit procedures conform to the auditing standards of the Audit & Supervisory Board, and according to the auditing policy and division of duties, Audit & Supervisory Board Members audit the proper execution of corporate management and communicate their opinions by attending meetings of the Board of Directors, Executive Committee and other important meetings, inspecting important decision documents, etc., and receiving reports and interviews from directors and employees on the status of operations.

Activities of the Audit & Supervisory Board

In principle, the Company holds meetings of its Audit & Supervisory Board once a month, and otherwise as needed.

Main resolution matters, deliberation matters and reporting matters at the Audit & Supervisory Board meetings are as follows.In order to verify the establishment and operation of an internal control system as our priority audit items for the current fiscal year, we audited the operation of the Corporate Governance Committee, the group governance system related to domestic automobile dealers, and the management conscious of the cost of capital.In addition, a meeting to exchange opinions was held with the Representative Directors, Outside Directors, Managing Officers and Executive General Managers to discuss a wide range of topics, including management challenges and risk awareness. At the same time, exchanges of opinions with the management of subsidiaries were conducted to confirm the operational status of Group governance systems.
Further, Audit & Supervisory Board Members exchange opinions among themselves in advance regarding agenda items before meetings of the Board of Directors so that they can offer meaningful opinions as Audit & Supervisory Board Members.

Examples of Audit & Supervisory Board Agenda Items

Status of Coordination with the Internal Audit Department and the Accounting Auditor

The Audit & Supervisory Board holds regular meetings with the Audit Division, which is an internal audit department, to exchange information and opinions on matters such as the Audit Division’s audit plans and audit results, as well as audit results from internal audit departments of subsidiaries, to ensure cooperation.
In addition, the Audit & Supervisory Board holds regular meetings with the Accounting Auditor to exchange information and opinions through hearing of reports on audit plans, audit results, interim reviews, the establishment and operation of the audit quality control system, and the exchange of opinions on key audit matters (KAM), thereby ensuring cooperation.

Evaluation of the Effectiveness of the Audit & Supervisory Board

The Audit & Supervisory Board evaluates its effectiveness by having each member review its activities, conducting evaluations via a checklist, and providing opinions and suggestions by means of surveys. These are discussed and examined collectively by all members, and the findings are reflected in the next audit plan as action items in an effort to continually improve effectiveness.

Activities of Audit & Supervisory Board Members

Audit & Supervisory Board Members conduct the following activities based on audit plans and division of duties.
In addition, Full-time Audit & Supervisory Board Members share information and exchange opinions with Outside Audit & Supervisory Board Members with the aim of improving the appropriateness of audit opinions by attending meetings of the Corporate Governance Committee and executive and business operations committees and meetings, reviewing important approval documents and reporting or explaining the status of daily audits to the Audit & Supervisory Board as necessary.

Auditing Firm Selection Policy and Reason for Selection

The Audit & Supervisory Board, based on its Policy for the Dismissal or Non-Reappointment of the Accounting Auditor and in accordance with the evaluation criteria established by the Board, evaluated PwC Japan LLC with respect to its quality control, the independence and expertise of the audit team, the level and appropriateness of audit fees, communication with Audit & Supervisory Board Members and management, the group audit framework, and responses to fraud risks. As a result of this evaluation, the Board concluded that the firm is capable of conducting audits appropriately.

Policy for the Dismissal or Non-Reappointment of the Accounting Auditor

If the Accounting Auditor is deemed to fall under any of the items set forth in Article 340, Paragraph 1 of the Companies Act, the Audit & Supervisory Board may dismiss the Accounting Auditor with the unanimous consent of all Audit & Supervisory Board Members.
In addition, if the Audit & Supervisory Board determines that it is necessary to dismiss or not reappoint the Accounting Auditor, such as when the Accounting Auditor is considered unable to perform its duties appropriately, the Audit & Supervisory Board shall determine the content of the proposal regarding the dismissal or non-reappointment of the Accounting Auditor to be submitted to the General Meeting of Shareholders.

Evaluation of Audit Firm by the Audit & Supervisory Board and Its Members

The Audit & Supervisory Board obtains the necessary materials from the relevant internal departments (finance and internal audit departments) and the accounting auditors, receives reports, and evaluates the audit firm against its established evaluation criteria.

Periodic Rotation and Reengagement of Accounting Auditors

Operations are carried out as follows in accordance with the regulations of the auditing firm based on the Certified Public Accountants Act, etc.:
1. Engagement partners may not be involved in the Company's audit work for more than seven accounting periods, and the lead engagement partner may not be involved in the audit work for more than five accounting periods.
2. Engagement partners may not be involved in the Company's audit work for two accounting periods after the change, and the lead engagement partner may not be involved in the audit work for five accounting periods after the change.

Policy on determination of audit remuneration

Audit remuneration is appropriately determined with the consent of the Audit & Supervisory Board, taking into consideration the audit plans of the certified public accountant for audits, etc., the audit content and the number of days and hours for the audit, etc.

Reasons for the Audit & Supervisory Board consenting to the remuneration, etc. for the Accounting Auditor

The Audit & Supervisory Board consents to the remuneration, etc. for the Accounting Auditor upon confirming the status of the audit plan and results for the previous fiscal year by obtaining the necessary materials and reports from the relevant internal divisions and the Accounting Auditor, and by undertaking the necessary verification of the appropriateness of the audit plan and remuneration estimates for the current fiscal year.

Training of Directors and Audit & Supervisory Board Members

The Company provides training sessions to help Directors and Audit & Supervisory Board Members deepen their understanding of their roles and responsibilities. In principle, the training is intended to be taken together by Directors and Audit & Supervisory Board Members as an opportunity to share information on their respective roles, responsibilities, etc.

Furthermore, the Company conducts training to enhance the skills of its officers, such as theater workshops where officers act out the conduct, roles, and responsibilities expected of officers and the conduct they should adopt while setting aside their egos; and training on topics such as compliance, risk management, the Company's history, feedback from shareholders and investors, capital policy, shareholder returns, digital transformation, AI utilization, and green transformation.

When a new Outside Director or a new Outside Audit & Supervisory Board Member assumes their post at the Company, they are instructed on the Company's corporate philosophy, lines of business, finances, organizations, etc. In addition, the Company will prepare opportunities to ensure that they can deepen their understanding of the Company, such as through interaction with Directors, Managing Officers and employees at the Company, attendance at various meetings related to business operations and management, and participation in factory inspections.

Committee on Personnel and Remuneration, etc.

To enhance transparency and objectivity in electing candidates for Directors and Audit & Supervisory Board Members, as well as deciding remuneration of Directors, the Company has voluntarily established the Committee on Personnel and Remuneration, etc. A majority of its members are Outside Directors.

The Committee on Personnel and Remuneration, etc. discusses issues such as election standards and adequacy of candidates for the position of director or Audit & Supervisory Board Member, as well as the adequacy of the system and level of Directors' remuneration. The results of these discussions form the basis for decisions made by the Board of Directors. The Board of Directors also delegates decisions on some matters to the Committee.

Decisions made by the Board of Directors for the election of senior Managing Officers and the remuneration of Managing Officers are also based on the results of the Committee's deliberations.

The main issues reviewed were as follows:

• Appropriateness of policy for determination of individual remuneration, etc. of Directors in FY2025
• Determination of the specific details of basic remuneration for each individual Director in FY2025
  (the Board of Directors delegated this determination to the Committee on Personnel and Remuneration, etc.)
• Appropriateness of policy and procedures for determining the remuneration of Managing Officers in FY2025
• Suitability of candidates for Directors to be proposed at the Annual General Meeting of Shareholders held in June 2026
• Appropriateness of content of revised remuneration for directors to be proposed at the Annual General Meeting of Shareholders held in June 2026
• Appropriateness of policy for determination of individual remuneration, etc. of Directors after the Annual General Meeting of Shareholders held in June 2026

Structure of Directors and Audit & Supervisory Board (As of June 25, 2026) and ｔheir Experience, Knowledge and Specialization

(as of June 25, 2026)

Outside Officers and Female Officers

Ratio of Independent Outside Directors

Internal:5　Independent Outside:4

Ratio of gender diversity among Directors

Male:7　Female:2

Ratio of Independent Outside Audit & Supervisory Board Members

Independent Outside:3　Internal:2

Ratio of gender diversity among Audit & Supervisory Board Members

Male:3　Female:2

Executive Committee and Other Meetings Relating to Business Operation and Management

In order to speedily deliberate and decide on important management issues and measures, the Company holds Executive Committee meetings, attended by Executive Directors, Managing Officers, Executive General Managers, and Audit & Supervisory Board Members, as well as meetings to report and share information on management and business execution on a regular and as-needed basis.

Various meetings are also held periodically and whenever necessary to deliberate on business plans, etc. and to receive monthly reports on operation of the Company, enabling the Company to appropriately plan, identify issues at an early stage, and grasp the situation on execution of operations.

Such meetings help to enhance the efficiency of decision-making at Board of Directors meetings and supervision of business execution.

Corporate Governance Committee

The Corporate Governance Committee, the meetings of which are attended by Executive Directors, Managing Officers, Executive General Managers, and Audit & Supervisory Board Members, was established to examine matters to ensure compliance and risk management, as well as to promote the implementation of measures and policies. The Committee also verifies the results of the effectiveness evaluation of internal controls over financial reporting in accordance with Article 24-4-4, Paragraph 1 of the Financial Instruments and Exchange Act.

Internal Auditing

The Audit Division has been established as an organization under the direct control of the President. As of March 31, 2026, it consisted of 71 staff members, primarily individuals with expertise in various areas of the Company’s operations. In accordance with the audit plan, the Audit Division conducts operational audits of the Company’s departments and domestic and overseas affiliated companies, while also providing advice and guidance on improvements regarding audit findings.

Operational audits include onsite, remote, and documentary audits to confirm the appropriateness and efficiency of overall operations, compliance with laws and regulations and internal rules, and the development and operation of internal controls, such as the management and safeguarding of assets.

The operational audit results, along with proposals for improvement of matters identified, are reported to the President and relevant executive officers each time an audit is conducted. Audit results are also reported to the Audit & Supervisory Board, where the results are reviewed and opinions are exchanged, and are reported to the Board of Directors once every six months. Advice and guidance are provided until improvements are completed in an effort to ensure the prompt correction of issues.

For overseas subsidiaries with their own internal audit functions, the Audit Division reviews the status of those activities, receives reports on audit plans and audit results, and provides advice and guidance as necessary.

Furthermore, the Company and the Independent Auditor share audit results on an ongoing basis and hold regular meetings to facilitate information sharing, enhance communication, and maintain close cooperation.

Policy on Directors' and Audit & Supervisory Board Members' Remuneration

Remuneration of Directors

The policy for determining individual remuneration of Directors (the “Determination Policy”) is established by resolution of the Board of Directors after consultation with the Personnel and Remuneration Committee, a majority of whose members are Outside Directors, regarding the appropriateness of the proposed policy, and taking into account the committee’s recommendations. The Determination Policy for FY2025 was established by resolution of the Board of Directors in May 2025 following consultation with the Personnel and Remuneration Committee. An overview of the policy is as follows.

Remuneration of Directors (excluding Outside Directors) consists of basic remuneration, bonuses offered as short-term incentives, and stock remuneration offered as medium- to long-term incentives to encourage continuous improvement of the Company’s corporate value. The ratio is roughly 30% basic remuneration, 35% bonuses, and 35% stock remuneration.
Remuneration of Outside Directors consists solely of basic remuneration, in view of the duties entailed by the role.

Method for Determining Amount of Basic Remuneration Paid, etc.

Basic remuneration of Directors is fixed monthly remuneration, which is determined and paid in consideration of duties and responsibilities, remuneration levels at other companies, and employee salary levels. Determination of the specific details of basic remuneration for individuals is delegated to the Committee on Personnel and Remuneration, etc. based on resolutions of the Board of Directors.

Method for Determining Bonuses, etc.

Bonuses are paid to Directors (excluding Outside Directors) to heighten awareness of improving performance for each fiscal year and to serve as an incentive toward achieving the management goals set in the Mid-Term Management Plan “By Your Side”. The specific amount of remuneration for each individual, paid at a fixed time every year, is calculated by multiplying the performance indicators predetermined by the Board of Directors after consultation with the Committee on Personnel and Remuneration, etc. by a stipulated percentage and the multiplication rate based on position as predetermined by the Board of Directors.

Method for Determining Performance-linked, Restricted Stock Remuneration

Restricted stock is delivered to Directors (excluding Outside Directors) to serve as an incentive toward achieving the management goals set in the Mid-Term Management Plan “By Your Side” and enhancing the Company's medium- to long-term corporate value, in addition to promoting greater sharing of value with shareholders. The specific number of shares granted to each individual shall be calculated by linking the achievement level of financial and non-financial performance evaluation indicators for the performance evaluation period (each fiscal year), which are established annually for each fiscal year based on medium- to long-term management plans and issues to be resolved, to the standard number of shares to be issued as determined in advance by the Board of Directors according to position, responsibilities, and other factors, following consultation with the Committee on Personnel and Remuneration, etc. Each year, at a fixed time following the conclusion of the performance evaluation period, monetary compensation claims are issued for the purpose of granting shares. Each eligible Director receives delivery of the Company's common stock by paying such monetary compensation claims in full as in-kind contributed property. The transfer restriction period is until the date of retirement from the position of Director at the Company. If a Director falls under certain grounds, such as the Director retiring for any reason other than that deemed reasonable by the Board of Directors, the Company shall acquire the shares allotted for no fee.

Furthermore, the Company has established a “malus and clawback provision” allowing it to request the return of all or part of the shares held by an eligible Director, or the Company's common shares for which the transfer restriction has been lifted, in the event that the Board of Directors recognizes a tort or violation of laws and regulations by an eligible Director after the transfer restriction period or lifting of the transfer restriction.

Remuneration for Directors Excluding Outside Directors in FY2025

Remuneration of Audit & Supervisory Board Members

The remuneration of Audit & Supervisory Board Members is limited to basic remuneration (monthly fixed remuneration), and is determined and paid based on consultations with Audit & Supervisory Board Members.

Remuneration in FY2025 (actual)

Dialogue with Shareholders

The Company is striving to promote dialogue with its shareholders in the belief that understanding the interests and concerns of shareholders through constructive dialogue from a medium- to long-term perspective will contribute to the Company’s sustainable growth and the medium- to long-term enhancement of its corporate value.

Of the 407 meetings held in FY2025, 50 (12%) were conducted by the Executive Officer responsible for Investor Relations. In addition, the increased use of online meetings enabled the Company to engage with a larger number of overseas institutional investors. Of the 1,086 companies with which meetings were held during FY2025, 485 (45%) were overseas institutional investors.

[Main Themes Discussed in Meetings Held During FY2025]
Of the 407 meetings held during FY2025, 21 focused on ESG-related topics, including meetings with proxy voting representatives.

Cross-Shareholdings

For the Company's sustainable growth and the medium- to long-term enhancement of its corporate value, Suzuki may hold shares of business partners, etc. when deemed beneficial for creating business opportunities, forming business alliances, and building, maintaining and strengthening transactional and cooperative relationships.

The appropriateness of individual cross-shareholdings is examined by the Board of Directors every year. The Company makes a comprehensive judgment on the accompanying benefits, risks, and other factors of holdings, taking into consideration the nature, scale and other factors of transactions, and setting qualitative criteria, including aspects of enhancement of corporate value, as well as quantitative criteria, including comparison with capital costs. The Company then reduces cross-shareholdings in the stocks it has decided to sell.

Change in Number of Cross-shareholdings of Liste Companies and Amount Recorded on Balance Sheet

Intellectual Property Promotion Structure

The first item of Suzuki’s Mission Statement is to “Develop products of superior value by focusing on the customer,” and our basic policy is to encourage the creation and utilization of intellectual property in the process of providing what customers really need in a way that is unique to Suzuki. In these efforts, our basic approach is to maximize our contribution to society while minimizing intellectual property risks. As our business expands and our global operations develop, we appropriately address growing intellectual property risks, such as litigation and injunctions, while seeking to balance the sustainable enhancement of business value with ensuring reliability.

The core of these intellectual property strategies lies in the Philosophy of Conduct “Sho-Sho-Kei-Tan-Bi (Smaller, Fewer, Lighter, Shorter, Beauty),” which is the root of Suzuki’s philosophy and culture and also contributes to carbon neutrality. Based on this Philosophy of Conduct, each and every employee will respond to the diversifying needs of customers and society with wisdom and ingenuity. They will design and develop products with original ideas that are unique to Suzuki, just right, inspiring amazement, and will continue to create intellectual property that contributes to solving social issues.

Intellectual Property Promotion Committee

In March 2022, the Company newly established the Intellectual Property Promotion Committee. This committee, which is attended by Directors, Managing Officers and Executive General Managers from relevant departments, holds Company-wide discussions on intellectual property strategies, and will continue this activity in the future (held 32 times between March 2022 and July 2026).
The contents discussed and determined at this committee are reported to the Executive Committee and the Board of Directors for approval. In this way, the Company establishes an appropriate governance organization for intellectual property and promotes the execution of intellectual property strategies.

Review of system for creating intellectual property

Under the Mid-Term Management Plan "By Your Side" announced in February 2025, intellectual property department members will be involved in development work carried out by the design and development departments to minimize energy consumption, and will turn the inspiration and ideas of the design and development departments into competitive patent rights.

In particular, starting in FY2024, approximately 80 managers (supervisory level) from each department were tasked with driving invention creation in the design and development departments, and the design and development departments and the intellectual property departments will work more closely together to discover inventions. Additionally, at the beginning of each fiscal year, the heads of the design and development departments and the intellectual property departments hold interviews to formulate and implement intellectual property strategies for each development area.

Enhancing incentives to create intellectual property through a reward system

In April 2023, Suzuki revised the reward system for intellectual property to make individual employees who create intellectual property feel “praised,” “recognized” and “highly commended.” Incentives for creating intellectual property were also strengthened in such ways as, in particular, having the inventors of patents chosen by the Executive General Managers for embodying Suzuki’s unique “Sho-Sho-Kei-Tan-Bi (Smaller, Fewer, Lighter, Shorter, Beauty),” being presented with awards directly by the President at Company-wide events, holding roundtable talks among the inventors, the President and officers, and disclosing scenes of such events on the Company intranet.

The focus of this fiscal year’s presidential award are the 12 patents described in the next section, “Achievements of ‘Sho-Sho-Kei-Tan-Bi.’”

In addition to the above, our reward system also supports the creation of intellectual property through a wide variety of programs, such as confidential invention rewards and naming rewards.

Confidential invention rewards are for know-how that is not suitable for disclosure. Certain inventions, such as those related to production engineering in factories, generally need to be kept as in-house know-how without a patent application being filed, as the nature of these inventions makes infringement by other companies difficult to detect. This system allows such inventions to still be eligible for rewards.

Furthermore, while intellectual property rewards are generally given to engineers, we have established naming rewards for outstanding product names, and are soliciting ideas from all employees.

(A roundtable discussion between inventors, the President, and officers)

Achievements of “Sho-Sho-Kei-Tan-Bi”

Automotive displays

<Patent key point>

By placing the function buttons from the home screen on destination screens as well, improved graphical aesthetics and intuitive screen transitions are achieved.

<Unique to Suzuki>

Shorter (Tan): Reduced operation time
Beauty (Bi): Improved graphical aesthetics

Display control device, control method and program for display control device

<Patent key point>

The function that assists two vehicles in passing each other offers two selectable modes, allowing users to switch between them according to their preferences and the situation.

<Unique to Suzuki>

Shorter (Tan): Reduced time for vehicles to pass each other
Beauty (Bi): Optimized path for vehicles to pass each other

Vehicle

<Patent key point>

A structure in which the front end of the front side member is connected to the upper member and its rear end is connected to the inside of the torque box improves collision safety in the front section of a BEV.

<Unique to Suzuki>

Fewer (Sho): Limits the increase in the number of components
Lighter (Kei): Avoids an increase in weight

Lower structure of vehicle body

<Patent key point>

Connecting the trailing arm mounting bracket and the battery pack with a reinforcing brace increases both vehicle body rigidity and trailing arm mounting strength.

<Unique to Suzuki>

Fewer (Sho): Limits the increase in the number of components
Lighter (Kei): Avoids an increase in weight

Vehicle traction control device

<Patent key point>

When the vehicle becomes stuck on rough terrain, the device automatically switches to control suitable for escaping from the stuck condition, eliminating the need for user operation.

<Unique to Suzuki>

Fewer (Sho): Limits the increase in the number of components and requires fewer operating steps

Shift device

<Patent key point>

In a shift sensor for a motorcycle quick shift system, a protective section formed above or below the sensor body reliably protects it from the rider’s foot and flying objects.

<Unique to Suzuki>

Smaller (Sho): Space-saving
Fewer (Sho): Limits the increase in the number of components

Vehicle motion control device for a saddle-type vehicle

<Patent key point>

In saddle-type vehicles such as motorcycles, weave and wobble vibrations that occur during straight-line travel at medium to high speeds are effectively suppressed without adding any new mechanisms.

<Unique to Suzuki>

Fewer (Sho): Limits the increase in the number of components
Lighter (Kei): Avoids an increase in weight

Power unit support device

<Patent key point>

In a configuration where a scooter’s unit swing-type power unit is supported by the vehicle body frame via a link mechanism, optimizing the position of the link mechanism’s swing stopper allows flexibility in the design of the vehicle body frame.

<Unique to Suzuki>

Lighter (Kei): Reduces weight through integral molding
Smaller (Sho): Smaller components

Battery

<Patent key point>

Positioning the battery circuit component (fuse) of an electric scooter where it does not interfere with the vehicle body frame improves maintainability.

<Unique to Suzuki>

Shorter (Tan): Improves work efficiency
Fewer (Sho): Efficient protective structure

Painting robot operation program generation system, operation program generation method, and teaching point generation device

<Patent key point>

Generating painting robot operation programs based on pseudo painting operations performed by skilled workers in a virtual space shortens program creation time while also improving painting quality.

<Unique to Suzuki>

Shorter (Tan): Shortens painting robot program creation time
Beauty (Bi): Improves painting quality

Cooling device for a marine propulsion unit

<Patent key point>

Making the collector’s downstream connecting pipe longer than its upstream connecting pipe and providing the downstream pipe with a bent section makes the collector easier to remove.

<Unique to Suzuki>

Fewer (Sho): Limits the increase in the number of components
Lighter (Kei): Avoids an increase in weight

Cooling device for a marine propulsion unit

<Patent key point>

Optimizing the flow passage configuration prioritizes flow into the collection passage, while suppressing unnecessary inflow into the bypass passage and preventing fine objects from being lifted up by backflow, thereby ensuring sufficient microplastic collection capability.

<Unique to Suzuki>

Fewer (Sho): Limits the increase in the number of components
Lighter (Kei): Avoids an increase in weight

Various Initiatives Concerning Intellectual Property

Suzuki offers royalty-free patent licenses on its outboard motor microplastic collection device

In March 2026, as part of its commitment to promoting marine environmental conservation and contributing to the realization of a sustainable society, Suzuki offered royalty-free use of 34 patents related to its outboard motor microplastic collecting device. By making these patents available, we aim to further accelerate efforts to improve the marine environment in collaboration with companies and organizations in Japan and overseas that share the same commitment.
Plastic waste flowing into the ocean has become a significant environmental issue worldwide. It breaks down into fine microplastics in the natural environment, causing serious impacts on ecosystems. To address this issue, Suzuki developed the world’s first microplastic collecting device that can be installed on outboard motors and began equipping select models with this device as standard equipment in July 2022. This innovative system enables microplastics near the water surface to be collected simply by running a boat, without affecting engine performance.
Suzuki will continue its environmental conservation activities, including the “SUZUKI CLEAN OCEAN PROJECT,” and work together with partners around the world to contribute to the creation of a more beautiful and sustainable future for the oceans.

Enhancing patent applications in India

Suzuki has been enhancing patent applications in India, which is one of Suzuki’s primary markets. We have acquired and currently maintain over 1,700 patents, second only to Japan, where we have acquired the most patents (approximately 4,500).

Periodic provision of the latest patent-related information

As part of our benchmarking activities, we promote viewing technological information by providing^* the latest patent-related information about business inside and outside the Company in an easy-to-view format, and support manufacturing and the realization of customers’ desires.

Conducting systematic intellectual property training

Suzuki also concentrates on intellectual property training by rank, implements stratified training with a focus on patent law^*1 and copyright law^*2, and promotes the importance of preserving and utilizing intellectual property throughout the entire company.

Signed a licensing agreement with Kusano Co., Ltd. for robotic slag-scraping technology for cast-iron melting furnaces
* The linked page is available in Japanese only.

Risk Management Basic Concept

The automobile industry is currently in the midst of unprecedented rapid change, including swift technological innovation, changes in social values, and environmental issues. Suzuki recognizes that there are a wide range of risks involved in conducting business activities amid such change. Based on our Mission Statement and Philosophy of Conduct, Suzuki believes that accurately identifying and analyzing the various risks inherent in corporate activities, preventing them from materializing, and minimizing their impact should they occur are essential for sustainable growth and enhancing corporate value over the medium to long term.

Based on this understanding, Suzuki collects information on various internal and external risks in a timely and appropriate manner in accordance with its risk management regulations and other related internal rules in order to identify risks at an early stage and respond promptly, thereby striving to ensure business continuity and stable development.

Problems that arise or are identified within individual departments are promptly discussed by the Corporate Governance Committee and the Management Committee according to their urgency and importance, leading to timely resolution.

We will continue to accurately monitor changes in social environments and technological trends, identify and assess risks on an ongoing basis, and strengthen the strategic risk management system across the entire Suzuki Group. Through these efforts, we aim to remain a company that continues to earn the trust of all stakeholders, including our customers.

Risk Management System

We established the Corporate Governance Committee under the Board of Directors to promote efforts to address cross-organizational issues through the implementation of risk management measures and coordination with related departments.

Problems that arise or are identified within individual departments are promptly discussed by the Corporate Governance Committee and the Management Committee according to their urgency and importance, leading to timely resolution. Each division reviews, on a weekly basis, the potential impacts and countermeasures related to issues such as product quality, certification, and final inspections, compliance with environmental regulations, and shortages of semiconductors and other components and raw materials, in order to quickly understand their implications for the business and make the necessary management decisions. Particularly important issues are discussed and reported to the Board of Directors.

Corporate Governance Committee

Responding to Issues with Quality

To avoid situations in which prolonged responses to quality issues cause significant inconvenience to customers and lead to increased countermeasure costs, we are working to strengthen our system for rapidly identifying root causes and implementing corrective measures. We continuously monitor the latest status of quality issues through regularly scheduled weekly and monthly meetings. Market actions, including recalls, are decided following deliberation by the Quality Measures Committee, which is composed of relevant executives, division heads, department general managers, and other responsible personnel.

Business Continuity Plan (BCP)

We have formulated a Business Continuity Plan (BCP) to ensure business continuity and rapid recovery in the event of an emergency such as an earthquake, storm, flood, or other natural disaster. In preparation for the various latent business disruption risks, we are working to strengthen a resilient management structure that ensures employee safety and business continuity, and that we recover as quickly as possible.

We will continue striving to be ready to quickly restore important functions and ensure stable supply through regular reviews to create an even more effective system.

Suzuki disaster countermeasures

In preparation against a natural disaster like a major earthquake in the Nankai Trough, Suzuki places the highest priority on ensuring the lives and safety of customers and employees, protecting company assets and properties, and enabling early restoration of operations, including those in local communities, to restore normal business operations. To minimize the impact of damage, we have taken various measures, such as providing buildings and facilities with earthquake-resistance measures, defining fire prevention measures, formulating an action manual and business continuity plan (BCP) that includes the establishment of a disaster response organization, and purchasing earthquake insurance.

Disaster countermeasures

The Group has taken various preventative measures in anticipation of a major earthquake along the Nankai Trough. Following the Great East Japan Earthquake, the Group has been diversifying its production and research bases, including overseas, by relocating its base from the Ryuyo district of Iwata City, Shizuoka Prefecture, which is expected to be hit by tsunami, to Miyakoda, a northern district of Hamamatsu City, distributing production of minicar engines, which had been concentrated at the Sagara Plant, to the Kosai Plant, and expanding research facilities in India, which also serves as a risk diversification for the Sagara Course, which is our automobile development base. Furthermore, to improve the functionality of Disaster Response Headquarters that will be set up in the event of a disaster, the head office regularly conducts drills with the participation of executives and staff from the headquarters in cooperation with Tokio Marine & Nichido Fire Insurance Co., Ltd. and Tokio Marine dR Co., Ltd. We will continue to use these activities to improve our disaster response capabilities.

Efforts to protect local residents from earthquakes and tsunamis

Suzuki has registered some of its facilities as tsunami evacuation sites for local residents, and sponsors annual tours of the sites. We also have a system in place whereby a lookout stationed on the roof of our head office checks for any tsunamis that may occur following earthquakes, and if it detects a tsunami, the system sounds sirens to alert employees and nearby residents. There is a manual and an electric siren, and the electric siren can be powered by a dedicated generator in case of a power outage.

Employee initiatives for responding to earthquakes and tsunamis

To protect the lives of employees, our head office, plants, and manufacturing affiliates have introduced an emergency earthquake alert system. We conduct regular earthquake and tsunami evacuation drills in which all employees participate so that they can protect their own safety when earthquake early warnings sound, and so that, at business locations at risk of tsunami, they can safely evacuate to locations that are not expected to flood. To ensure people can keep in contact during a disaster, we have installed communication devices such as satellite phones and walkie-talkies at each plant and distributor nationwide so we can quickly confirm employees are safe, and we conduct regular communications drills to prepare for emergencies.

We have also introduced a safety information system that enables us to confirm employees are safe in the event an earthquake or tsunami occurs outside of working hours. Under this system, if an earthquake with a seismic intensity of 5 or higher occurs, an email inquiring about the safety of employees and their families is automatically sent to the email address registered by each employee so that we can confirm that employees and their families are safe. Employees who receive this email can respond with a confirmation that they are safe, allowing managers to know they are safe. We conduct training drills of this system twice a year to ensure that we can confirm safety quickly if an earthquake occurs.

To encourage each household to prepare for earthquakes and floods, we also distribute a leaflet entitled Preparing for Disasters (Earthquakes and Floods) at Home to all employees. We convey the importance of preparing before a disaster occurs by encouraging people to check their contact details and evacuation locations, check their homes and other areas for risks using hazard maps, and prepare emergency supplies.

Efforts against fire disasters

As part of our company-wide fire prevention campaign, we investigate the true cause of even the smallest sparks, and work to roll out effective countermeasures and conduct voluntary inspections across the entire company. To minimize damage if an emergency occurs, we work to ensure that everyone in the workplace is able to take initial actions, and we conduct various training activities, including reporting drills in which employees activate fire alarm transmitters, firefighting drills in which they use fire extinguishers and fire hydrants, water spraying drills in which our in-house fire brigades use fire engines and small portable pumps, and evacuation drills in which some fire shutters are closed. We also distribute disaster bandannas to people who cannot hear emergency announcements or who have mobility issues, and provide training to ensure they get help from those around them.

In addition to disaster prevention audits, in which each plant and business establishment checks for any fire prevention deficiencies, we also conduct joint disaster prevention audits with Tokio Marine & Nichido Fire Insurance Co., Ltd. and Tokio Marine dR Co., Ltd., and have established disaster prevention standards to prevent fires, and are working to build a global disaster prevention system that includes our overseas factories.

Donation to efforts to construct a seawall along the Enshu Nada coast

As of the end of September 2014, Suzuki had donated a total of 500 million yen to the Hamamatsu City Tsunami Countermeasures Project Fund to promote the construction of seawalls as a measure against tsunamis caused by earthquakes. Additionally, by the end of March 2015, we had donated 500 million yen to the Hamamatsu City Sports Facilities Development Fund to help construct a sports facility that will also function as a tsunami evacuation base and emergency rescue heliport. As a result, the total amount of support given to the Hamamatsu City Seawall Improvement Project, including the Hamamatsu City Tsunami Countermeasures Project Fund and the Hamamatsu City Sports Facilities Development Fund, has reached 1 billion yen.

Furthermore, by the end of March 2019, we had donated a total of 340 million yen to earthquake and tsunami countermeasures for eight cities and towns in western Shizuoka Prefecture, where our plants, related facilities, and many of our business partners are located. Additionally, we donated 2.8 billion yen in August 2020 and 1.03 billion yen in October 2025, as well as part of the land on the Ryuyo Course in December 2021 to promote the development of seawalls in Iwata City.

Global risk management (GRM)

As part of our BCP, the Suzuki Group is working on Global Risk Management (GRM) with the aim of building a risk-resilient system that prevents or makes disasters less likely to occur, and that helps us recover quickly if a disaster does occur. As a group that operates globally,we practice disaster risk management based on common perspectives and standards, to build a strong,unified Group-wide response capability that transcends differences between regions and bases.

Starting in FY2022, we began collaborating with Tokio Marine & Nichido Fire Insurance Co., Ltd. And Tokio Marine dR Co., Ltd., both of which have high levels of expertise in the field of risk management. The three companies, including Suzuki, are pooling their knowledge and experience to steadily promote onsite initiatives while improving the accuracy and effectiveness of disaster prevention measures.

GRM initiatives began in FY2022 at Suzuki’s major domestic plants and some of its domestic manufacturing subsidiaries, and were gradually expanded to include development department facilities, sales offices, overseas bases, and parts bases in FY2024. We will continue to strengthen our fire and disaster prevention systems globally.

Through our GRM initiatives, we will continue to work to build a corporate structure that is resilient to disaster risks, and to implement and establish global standards for fire and disaster prevention, thereby ensuring safe and secure business operations.

Basic Policy on Compliance

For the Suzuki Group to grow and develop sustainably, it must be trusted by society and its activities must be supported and understood. To achieve this, we recognize that it is essential not only to comply with laws and regulations and internal company rules, but also to abide by social norms and act based on high ethical standards.

Suzuki established its "Mission Statement" in 1962 based on the traditions and spirit that have been passed down since the Company's founding. It lays out the kind of company Suzuki wants to be, with the aim of sharing values throughout the Suzuki Group.

In 2016, we also established the Suzuki Group Code of Conduct (hereinafter referred to as the "Code of Conduct"), which is a set of rules that, in accordance with the spirit of "Mission Statement", will enable people working at the Suzuki Group to devote themselves to their work in a healthy, efficient and energetic manner. We have compiled this code of conduct into a booklet that all Suzuki Group employees can carry with them at all times. In addition to the Japanese version, we have also created English and Portuguese versions that we distribute to foreign employees in Japan. Additionally, our overseas subsidiaries distribute copies to employees in their respective native languages.

We also published a Compliance Handbook in 2020, which specifically outlines what everyone working at the Suzuki Group must do and what they must not do, based on the Code of Conduct. In 2024, we revised the handbook and distributed the second edition to all employees in Japan. It is also available in Japanese, English, and Portuguese, so employees can check and review it at any time during their daily work.

Corporate Philosophy

Suzuki Group Code of Conduct

Compliance Structure

Suzuki Motor Corporation has established the Corporate Governance Committee under the Board of Directors to strengthen its response to cross-organizational issues by implementing risk management measures and coordinating with related departments.
The Committee is chaired by the President and comprises related officers and Executive General Managers as vice chairs, other Executive General Managers as members, and Audit & Supervisory Board Members as observers. When compliance issues arise, the Committee deliberates each issue, takes necessary measures, and reports the details to Directors and Audit & Supervisory Board Members as appropriate.

Compliance Initiatives

Whistleblowing System (Suzuki Group Risk Management Hotline)

In order to prevent compliance violations and to quickly correct them, Suzuki has established a reporting hotline based on the whistleblowing system (Suzuki Group Risk Management Hotline; comprising two internal contact points and one external contact point (a law firm)) that accepts reports from all Suzuki Group executives and employees (including temporary and fixed-term employees, as well as former employees) both in Japan and overseas. It also accepts reports from external parties such as business partners, contractors, and freelancers. The hotline has laid down rules to ensure the anonymity of whistleblowers and the confidentiality of reported information, and has established a system in which users can report actual or potential compliance issues, such as violations of laws, regulations, or internal rules, and issues related to corporate ethics such as corruption, and harassment, without being subject to any disadvantageous treatment.

We also conduct surveys regarding awareness and use of the whistleblowing system, and are working to use employee feedback to make improvements.

The following chart shows the number of whistleblowing reports received in the past five years(FY2021-2025)

Trends in the number of whistleblowing reports^*

* The figures exclude consultations and inquiries that do not involve compliance issues.

Flow of the whistleblowing process

Daily Compliance Quiz

To foster a culture of daily compliance awareness, we have been conducting e-learning every day since June 2017, in which one compliance-related quiz question is displayed on the work PCs of executives and employees each day when they start up their PCs.

Remember 5.18 Activities

The "Remember 5.18 Activities" are an annual initiative to ensure that the fuel economy and emissions test issues of 2016 and the final inspection issues of 2018 are not forgotten. The president, executives, and all employees participate in these activities, and we strive to foster a workplace culture that prevents misconduct by improving compliance awareness and communication. Starting in FY2023, we began a company-wide inventory of the relationship between business operations and laws and regulations as part of a comprehensive review that looks back over our daily operations to see if there are any problems and taking steps to resolve any issues while they are still minor.

As in the previous year, all 34 overseas bases subject to audits participated in the activities in FY2026.
Approximately 14,800 people attended the Remember 5.18 Activities Report Meeting held on May 18.
This year’s activities marked ten years since the fuel efficiency testing misconduct. At the activity report meeting, officers and Executive General Managers discussed “The Future of Compliance at Suzuki” to ensure that all employees take personal ownership of compliance activities, understand their purpose, and continue to engage in them proactively. The Suzuki Group will continue to carry out the Remember 5.18 Activities as part of its efforts to strengthen compliance.

President’s Workplace Dialogue

To facilitate smooth communication among supervisors, subordinates, colleagues, and departments, and to foster an open workplace culture in which problems can be easily reported, communicated, and discussed, workplace dialogues led by the president are conducted for all divisions, with each workplace participating (the dialogues that began in September 2025 cover 38 workplaces).

Establishing a tax policy

Suzuki established the Suzuki Group Tax Policy as the basic policy for thorough tax compliance and to conduct appropriate tax payments.(Established in December 2022 and revised in September 2024)

Tax Policy of the Suzuki Group

The Suzuki Group (hereinafter, “we”) shall conduct business by placing utmost importance on our motto and mission of developing products and providing services of superior value by focusing on the customer. Simultaneously, we understand the importance of being tax compliant, by duly fulfilling our obligations as a taxpayer and returning our profits to society through tax payments and strive to contribute to society.

Legal Compliance

We shall comply with the tax laws and tax treaties of individual countries and adhere to the spirit of international standards such as the OECD Transfer Pricing Guidelines and the BEPS Action Plan, thereby ensuring fair and equitable payment of taxes while also not engaging in unjust tax avoidance practices.

Governance

The executive officer in charge of finance oversees tax matters for the entire Suzuki Group. We have established appropriate reporting systems to deal with tax risks as part of an internal control mechanism, with the Board of Directors receiving reports on tax filings and other matters. Audit & Supervisory Board Members also attend those meetings and verify the content of the filings. Management strives to resolve tax risks that are crucial and/or require immediate attention through deliberations at meetings of the Board of Directors as necessary. Regular in-house training is conducted for every employee to deepen understanding and awareness of tax compliance.

Relationship with Tax Authorities

We shall take every possible opportunity to foster a trustworthy relationship with tax authorities. In addition, if there is a lack of mutual understanding with the tax authorities, we shall promptly communicate with them. Furthermore, we shall sincerely make transparent tax payments and deal with tax audits appropriately in accordance with the basic policy and guidelines.

Prevention of Double Taxation

We are well aware of the applicable double taxation risks arising because of international taxation, including transfer pricing. We follow the international transfer pricing guidelines as well as local regulations of the respective countries of operation when determining the prices of inter-company transactions. Furthermore, as a Group, we shall strive to eliminate the risk of double taxation by consultation with tax experts, negotiation with relevant tax authorities, and implementation of applicable remedies.

Anti-Corruption

The Suzuki Group recognizes that competition-related laws and regulations such as antitrust laws, other laws and regulations concerning fair business transactions, and social norms may differ from country to country or region to region, and thoroughly trains its employees to ensure that they comply with the laws and regulations and social norms of those respective countries and regions. We work to prevent all forms of corruption, including bribery.

Anti-bribery initiatives

The Suzuki Group strives to prevent bribery by including "Compliance" in the Suzuki Group Code of Conduct and by including sections on "Bribery" and "Reception of Business Entertainment" in the Compliance Handbook.

To further clarify our approach to anti-bribery, we established the Suzuki Group's Principles on the Prohibition of Bribery in March 2024 following a resolution by the Board of Directors. We are fully aware that bribery can lead to severe sanctions from various countries and a loss of social credibility, and so we act in accordance with these Principles to avoid any involvement in bribery or other illegal conduct.

We also require all business entities that we do business with (including business partners, joint venture partners, consultants, agents, etc.) to comply with these Principles.

Suzuki Group's Principles on Anti-Bribery

Suzuki Group’s Principles on the Prohibition of Bribery

Compliance Handbook

Suzuki strives to prevent prohibited conduct by providing specific examples thereof (e.g., facilitation payments, provision of entertainment for public officials who have influence over corporate activities, etc.) in its Compliance Handbook. The handbook is distributed to all employees in Japan. In addition to the Japanese version, English and Portuguese versions have been produced so that employees can check and review their conduct at any time during their daily work.

Internal rules on Reception of Business Entertainment

In order to build and maintain fair and reasonable relationships with all business partners, we have established internal regulations regarding Reception of Business Entertainment received from business partners, including the requirement to keep records thereof, and require all executives and employees to comply with these regulations.

Efforts to prevent anti-competitive behavior

Suzuki has included policies requiring compliance with competition laws and regulations in the Suzuki Group Code of Conduct, and thoroughly trains employees on such matters. We also distribute the Compliance Handbook and Competition Law Guidebook that provide easy-to-understand examples of specific prohibited conduct in an effort to help employees understand these matters better.

• Cartel and bid-rigging regulations (information exchange with competitors, business alliances/OEM, bid-rigging)
• Regulation of unfair trade practices (unfair discriminatory treatment, restricting resale prices, restricting trade terms, tie-in sales, abuse of dominant bargaining position, misrepresentation)
• Responding when the need arises (advance consultation, cooperation with government authorities for on-site inspections, etc.)

Compliance with Supply Chain Laws and Regulations

Compliance, respect for human rights, and environmental initiatives in the supply chain

As Suzuki expands its business activities globally, its stakeholders, including business partners, are becoming increasingly multinational and diverse. As a result, there are growing expectations that we not only comply with the laws and social norms of each country, but also fulfill our Corporate Social Responsibility (CSR) to consider their cultures and histories as well. Based on these social demands, we have compiled the Suzuki Supplier Sustainability Guidelines, which outline our basic approach to the social responsibilities we need to fulfill together with our business partners, and what we need to do to achieve them, and we are working side-by-side with our suppliers to promote CSR activities.
We also revised the “Suzuki Group Basic Policy on Respect for Human Rights" in September 2025.
Respect for human rights is the basis of all our corporate activities, and we strive to ensure that all Suzuki Group companies understand this. Finally, we ask all business partners, including suppliers and dealers, to embrace this policy, expect them to take steps to respect human rights, and will encourage them and work with them to ensure they do.

Suzuki Supplier Sustainability Guidelines