Suzuki Motor : Consolidated Financial Summary for the First Three Months Ended 30 June 2020

[English translation from the original Japanese language document]

Consolidated Financial Summary for the First Three Months Ended 30 June 2020

[Japanese GAAP]

			3 August 2020
Company Name	: SUZUKI MOTOR CORPORATION
Code No.	: 7269	Listings	: The First Section of Tokyo Stock Exchange
Representative	: Toshihiro Suzuki, President	URL	:https://www.globalsuzuki.com
Contact Person	: Seiji Kobayashi, General Manager, Corporate Management / IR / Cost Management Dept. Corporate Planning Office
	TEL [phone]
Date of Filing Quarterly Securities Report	: 7 August 2020
Start of Payment of Cash Dividends	: -
Preparation of Supplementary Explanatory Materials	: Yes
Holding of Presentation Meeting on Quarterly Financial Results	: Yes
		(Amounts less than one million yen are rounded down)

1. Consolidated Operating Results for FY2020 first three months (1 April - 30 June 2020)

(1) Consolidated Management Results		(Percentage indicates change from the same period of the previous year)
		Net sales		Operating income	Ordinary income	Net income attributable
			to owners of the parent
		Millions of Yen		%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%
	FY 2020 first three months	425,262		-53.1	1,298	-97.9	14,470	-80.0	1,764	-95.6
	FY 2019 first three months	907,534		-8.1	62,656	-46.2	72,400	-45.6	40,511	-52.8

[Note] Comprehensive income	FY2020 first three months	16,229	Million Yen	( -11.1	%)
		FY2019 first three months	18,256	Million Yen	( -73.9	%)
		Net income per share, Basic	Net income per share, Diluted
		Yen			Yen
FY 2020 first three months		3.63			3.63
FY 2019 first three months		87.82			87.80

(2) Consolidated Financial Position

	Total assets	Net assets	Shareholders' equity ratio
	Millions of Yen	Millions of Yen	%
FY 2020 first quarter	3,594,652	1,786,760	41.3
FY 2019	3,339,783	1,793,657	44.5

[Reference] Shareholders' equity :	FY2020 first quarter	1,482,819 Million Yen
(Net assets excluding non-controlling	FY2019	1,487,550 Million Yen
interests and subscription rights to shares)

2. Cash Dividends

			Cash dividends per share
	First quarter	Second quarter	Third quarter	Year-end	Annual
	Yen	Yen	Yen	Yen	Yen
FY2019	―	37.00	―	48.00	85.00
FY2020	―
FY2020 (Forecast)		-	―	-	-

[Note] 1 Revision of the latest forecasts of cash dividends announced: None

• With respect to the forecasts of cash dividends for FY2020, the company is currently unable to provide.

3. Forecasts for Consolidated Operating Results of FY 2020 (1 April 2020 - 31 March 2021)

As the new coronavirus pandemic is spreading in the Company's major market of India, we are currently unable to rationally calculate the forecasts. Therefore, the announcement of forecasts for consolidated operating results remains undetermined. [Note] Revisions of the latest forecasts for consolidated operating results announced: None

• Notes
• 1. Changes in significant subsidiaries during the period

(Changes in specified subsidiaries that accompany with a change in the scope of consolidation): None

New - (Name)

Exclusion - (Name)

1. Application of accounting treatment specific to preparation of quarterly consolidated financial statements: Yes
2. Changes in Accounting Principles, Changes in Accounting Estimates, and Retrospective Restatements

1) Changes in accounting principles due to the revision of the accounting standards	: None
2) Changes in accounting principles other than 1)	: None
3) Changes in accounting estimates	: None
4) Retrospective restatement	: None
(4) Number of outstanding shares (common stock)	(Shares)

1. Number of outstanding shares at end of period (including treasury stock)
2. Number of treasury stock at end of period
3. Average number of outstanding shares during period (First three months)

FY2020 Q1	491,067,800	FY2019	491,067,800
FY2020 Q1	5,735,345	FY2019	5,735,335
FY2020 Q1	485,332,462	FY2019 Q1	461,328,905

• This quarterly financial report is not required to be audited by certified public accountants or audit firm.
• Explanation regarding the appropriate use of forecasts for operating results, other information

(Caution with respect to forward-looking statement)

As the new coronavirus pandemic is spreading in the Company's major market of India, we are currently unable to rationally calculate the forecasts. Therefore, the announcement of forecasts for consolidated operating results remains undetermined.

(Quarterly Results Supplementary Explanatory Materials)

Quarterly Results Supplementary Explanatory Materials will be available on our website (https://www.globalsuzuki.com) on 3 August 2020.

[Attachment]
Table of Contents
Quarterly Consolidated Financial Statements and Significant Notes..........................................................	2
(1) Quarterly Consolidated Balance Sheet................................................................................................................................	2
(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of
Comprehensive Income............................................................................................................................................................	4
(3) Quarterly Consolidated Statement of Cash Flows..........................................................................................................	6
(4) Notes to Quarterly Consolidated Financial Statements ...............................................................................................	7
(Assumption for Going Concern)...........................................................................................................................................	7
(Significant Changes in the Amount of Shareholders' Equity)..................................................................................	7
(Application of Accounting Treatment Specific to Preparation of Quarterly Consolidated
Financial Statements)...............................................................................................................................................................	7
(Notes to Quarterly Consolidated Statement of Income)...........................................................................................	7
(Segment Information)..............................................................................................................................................................	7

１

Quarterly Consolidated Financial Statement and Significant Notes

(1) Quarterly Consolidated Balance Sheets

			(Amount: Millions of yen)
		FY2019	FY2020 first quarter
		(As of 31 March 2020)	(As of 30 June 2020)
Assets
Current assets
Cash and deposits	485,808	825,312
Notes and accounts receivables-trade	427,358	388,435
Short-term investment securities	118,584	105,706
Merchandise and finished goods	245,409	220,272
Work in process	47,420	52,046
Raw materials and supplies	62,662	73,029
Other	155,349	159,418
Allowance for doubtful accounts	(2,871)	(3,442)
Total current assets	1,539,722	1,820,778
Noncurrent assets
Property, plant and equipment	920,144	920,926
Intangible assets	1,604	1,885
Investments and other assets
Investment securities	662,194	637,062
Other	216,713	214,536
Allowance for doubtful accounts	(445)	(386)
Allowance for investment loss	(150)	(150)
Total investments and other assets	878,312	851,062
Total noncurrent assets	1,800,060	1,773,874
Total assets	3,339,783	3,594,652
Liabilities
Current liabilities
Accounts payable-trade	257,996	175,883
Electronically recorded obligations	71,869	50,317
Short-term loans payable	195,598	506,007
Current portion of bonds with subscription rights to	2,972	2,972
shares
Income taxes payable	22,310	17,491
Provision for product warranties	243,920	237,157
Other	430,838	394,976
Total current liabilities	1,225,506	1,384,807
Noncurrent liabilities
Bonds with subscription rights to shares	8,560	8,560
Long-term loans payable	197,064	304,092
Other provision	15,898	16,562
Liabilities for retirement benefits	67,206	60,612
Other	31,889	33,256
Total noncurrent liabilities	320,619	423,084
Total liabilities	1,546,126	1,807,891
		２

			(Amount: Millions of yen)
		FY2019	FY2020 first quarter
		(As of 31 March 2020)	(As of 30 June 2020)
Net assets
Shareholders' equity
Capital stock	138,202	138,202
Capital surplus	146,490	146,490
Retained earnings	1,414,665	1,393,129
Treasury stock	(21,775)	(21,775)
Total shareholders' equity	1,677,583	1,656,047
Accumulated other comprehensive income
Valuation difference on available-for-sale securities	87,455	96,446
Deferred gains or losses on hedges	(269)	(277)
Foreign currency translation adjustment	(255,266)	(247,854)
Accumulated adjustment for retirement benefits	(21,951)	(21,542)
Total accumulated other comprehensive income	(190,032)	(173,227)
Subscription rights to shares	115	115
Non-controlling interests	305,990	303,826
Total net assets	1,793,657	1,786,760
Total liabilities and net assets	3,339,783	3,594,652

３

(2) Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of Comprehensive Income (First Three months ended 30 June 2020)

【Quarterly Consolidated Statement of Income】

	(Amount: Millions of yen)
FY2019 first three months	FY2020 first three months
(1 April - 30 June 2019)	(1 April - 30 June 2020)

Net sales Cost of sales Gross profit

Selling, general and administrative expenses Operating income

Non-operating income Interest income Dividends income

Equity in earnings of affiliates Other

Total non-operating income Non-operating expenses

Interest expenses Foreign exchange losses Other

Total non-operating expenses Ordinary income Extraordinary income

Gain on sales of noncurrent assets Gain on sales of investment securities Total extraordinary income

Extraordinary loss Loss on COVID-19

Loss on sales of noncurrent assets Total extraordinary loss

Income (loss) before income taxes Income taxes

Net income (loss)

Net income (loss) attributable to non-controlling interests

Net income attributable to owners of the parent

907,534		425,262
646,429		285,543
261,105		139,719
198,449		138,420
62,656		1,298
9,612		16,182
1,585		2,021
1,046		15
2,878		1,579
15,122		19,799
1,472		1,303
1,531		1,716
2,374		3,606
5,379		6,627
72,400		14,470
218		73
6		-
224		73
-	※	15,399
18		10
18		15,409
72,606		(865)
23,234		(314)
49,371		(550)
8,859		(2,314)
40,511		1,764

４

【Quarterly Consolidated Statement of Comprehensive Income】

		(Amount: Millions of yen)
	FY2019 first three months	FY2020 first three months
	(1 April - 30 June 2019)	(1 April - 30 June 2020)
Net income (loss)	49,371	(550)
Other comprehensive income
Valuation difference on available-for-sale securities	218	11,990
Deferred gains or losses on hedges	109	123
Foreign currency translation adjustment	(30,735)	4,269
Adjustment for retirement benefits	15	491
Share of other comprehensive income of affiliates	(722)	(96)
accounted for using equity method
Total other comprehensive income
(31,114)	16,779
Comprehensive income	18,256	16,229
Comprehensive income attributable to:
owners of the parent	18,201	18,568
non-controlling interests	54	(2,338)

５

(3) Quarterly Consolidated Statement of Cash Flows

		(Amount: Millions of yen)
	FY2019 first three months	FY2020 first three months
	(1 April - 30 June 2019)	(1 April - 30 June 2020)
Net cash provided by (used in) operating activities
Income (loss) before income taxes	72,606	(865)
Depreciation and amortization	39,067	30,263
Increase (decrease) in allowance for doubtful accounts	(2,142)	316
Increase (decrease) in liabilities for retirement benefits	649	(7,013)
Increase (decrease) in provision for product warranties	14,938	(7,045)
Interest and dividends income	(11,197)	(18,203)
Interest expenses	1,472	1,303
Foreign exchange losses (gains)	1,108	(2,649)
Equity in losses (earnings) of affiliates	(1,046)	(15)
Loss (gain) on sales of property, plant and equipment	(199)	(63)
Decrease (increase) in notes and accounts receivable-trade	21,077	45,874
Decrease (increase) in inventories	(3,244)	15,130
Decrease (increase) in accounts receivable-other	1,819	9,466
Increase (decrease) in notes and accounts payable-trade	(46,720)	(104,347)
Increase (decrease) in accrued expenses	(18,846)	(34,142)
Increase (decrease) in advances received	(3,513)	(8,644)
Other, net	4,911	(7,185)
Subtotal	70,741	(87,820)
Interest and dividends income received	10,712	18,208
Interest expenses paid	(1,502)	(1,570)
Income taxes paid	(24,562)	(4,828)
Net cash provided by (used in) operating activities	55,389	(76,011)
Net cash provided by (used in) investing activities
Payments into time deposits	(56,387)	(18,957)
Proceeds from withdrawal of time deposits	36,179	25,485
Purchase of short-term investment securities	(217,313)	(101,214)
Proceeds from sales and redemption of securities	251,797	105,325
Purchases of property, plant and equipment	(67,226)	(35,651)
Other, net	(22,528)	41,545
Net cash provided by (used in) investing activities	(75,479)	16,533
Net cash provided by (used in) financing activities
Net increase (decrease) in short-term loans payable	(2,046)	195,371
Proceeds from long-term loans payable	18,704	246,042
Repayment of long-term loans payable	(13,383)	(15,016)
Cash dividends paid	(17,075)	(23,304)
Cash dividends paid to non-controlling interests	(195)	(0)
Other, net	(6)	(2)
Net cash provided by (used in) financing activities	(14,002)	403,091
Effect of exchange rate changes on cash and cash equivalents	(3,884)	3,216
Net increase (decrease) in cash and cash equivalents
(37,977)	346,830
Cash and cash equivalents at beginning of period	473,097	420,392
Cash and cash equivalents at end of period	435,119	767,223

６

(4) Notes to Quarterly Consolidated Financial Statement

(Assumption for Going Concern)

None

(Significant Changes in the Amount of Shareholders' Equity)

None

(Application of Accounting Treatment Specific to Preparation of Quarterly Consolidated Financial Statements)

[Calculation of income taxes]

With respect to income taxes, the effective tax rates were reasonably estimated after applying the tax effect accounting to the income before income taxes of the consolidated fiscal year. And income tax was calculated by multiplying the income before income taxes by this estimated effective tax rate.

(Notes to Quarterly Consolidated Statement of Income)

※Loss on COVID-19

FY2020 first three months (1 April - 30 June 2020)

¥15,399 million equivalent to fixed expenses related to production suspension due to lockdown in countries including India and Hungary to prevent the spread of the new coronavirus pandemic was accounted as extraordinary loss.

(Segment Information)

Net sales and Profit (Loss) of Each Reportable Segment

FY2019 first three months (1 April - 30 June 2019)

				(Amount: Millions of yen)
		Reportable Segments
	Automobile	Motorcycle	Marine business,	Total
	business	business	etc.
Net Sales	817,106	65,613	24,814	907,534
Segment profit (loss)*1	54,610	2,264	5,782	62,656

FY2020 first three months (1 April - 30 June 2020)

							(Amount: Millions of yen)
					Reportable Segments
			Automobile		Motorcycle	Marine business,	Total
			business		business	etc.
Net Sales	367,422		34,932	22,907	425,262
Segment profit (loss) *1	24		(3,009)	4,283	1,298
[Notes] *1. Segment profit (loss) is an operating income in the quarterly consolidated statement of income.
	2. Main products and services of each segment are as follows:
	Segment				Main products and services
	Automobile business		Mini vehicles, Sub-compact vehicles, Standard-sized vehicles
	Motorcycle business		Motorcycles, All terrain vehicles
	Marine business, etc.		Outboard motors, Motorized wheelchairs, Houses

７

(Reference)

As reference information, operating results by geographic region are as follows;

[Operating Results by Geographic Region]

FY2019 first three months (1 April - 30 June 2019)

(Amount: Millions of yen)

	Japan	Europe	Asia	Other	Total	Eliminations	Consolidated
Net Sales
1) Net sales to external customers	339,127	120,430	401,526	46,450	907,534	－	907,534
2) Internal net sales or transfer	169,970	45,273	29,689	46	244,980	(244,980)	－
among geographic regions
Total	509,098	165,703	431,216	46,496	1,152,515	(244,980)	907,534
Operating income (loss)	26,068	8,026	21,964	2,293	58,352	4,304	62,656

FY2020 first three months (1 April - 30 June 2020)

(Amount: Millions of yen)

		Japan	Europe		Asia		Other	Total	Eliminations	Consolidated
Net Sales
1) Net sales to external customers	234,831	58,765		97,624		34,040	425,262	－	425,262
2) Internal net sales or transfer		96,140	16,673		7,607		13	120,434	(120,434)	－
among geographic regions
Total		330,971	75,438		105,232		34,054	545,697	(120,434)	425,262
Operating income (loss)		1,017	(452)		(6,732)		1,078	(5,088)	6,387	1,298
[Notes] 1. Classification of countries or regions is based on a geographical adjacency.
2. The major countries or regions belonging to classifications other than Japan:
(1) Europe......................	Hungary, Germany, United Kingdom and France
(2) Asia….........................	India, Pakistan ,Indonesia and Thailand
(3) Other.......................	United States, Australia, Mexico and Colombia

3. Classification is based on the location of the Company and its consolidated subsidiaries.

８