Suzuki Motor : Financial Summary

[English translation from the original Japanese language document]

Consolidated Financial Summary for the First Nine Months Ended 31 December 2021

[Japanese GAAP]

			4 February 2022
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	: Toshiya Miki, Department General Manager, Corporate Strategy Department
	TEL [phone]
Date of Filing Quarterly Securities Report	: 10 February 2022
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 FY2021 first nine months (1 April - 31 December 2021)

(1) Consolidated Management Results	(Percentage indicates change from the same period of the previous fiscal year)
		Net sales		Operating profit	Ordinary profit	Profit attributable to owners of parent
		Millions of Yen		%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%
	FY 2021 first nine months	2,574,330		18.3	146,659	5.7	203,869	16.6	135,786	19.9
	FY 2020 first nine months	2,175,532		-17.2	138,777	-18.6	174,887	-10.2	113,249	-2.8

[Note] Comprehensive income	FY2021 first nine months	174,027 Million Yen	(9.3%)
		FY2020 first nine months	159,206 Million Yen	(35.4%)
		Profit per share, Basic	Profit per share, Diluted
		Yen		Yen
FY 2021 first nine months		279.63		279.61
FY 2020 first nine months		233.33		233.30

[Note] "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020), etc. have been applied from the beginning of FY2021 first quarter. Net sales and profit for FY2021 first nine months are the figures after the application.

(2) Consolidated Financial Position

		Total assets	Net assets	Shareholders' equity ratio
		Millions of Yen	Millions of Yen	%
FY 2021 third quarter		3,993,218	2,148,476	44.9
FY 2020		4,036,360	2,031,964	41.8
[Reference] Shareholders' equity	(Net assets excluding non-controlling interests and share acquisition rights):
FY2021 third quarter 1,791,392 Million Yen	FY2020 1,687,478 Million Yen

[Note] "Accounting Standard for Revenue Recognition" (ASBJ Statement No.29, March 31, 2020), etc. have been applied from the beginning of FY2021 first quarter. The figures for FY 2021 first nine months are the ones after the application.

2. Cash Dividends

			Cash dividends per share
	First quarter	Second quarter		Third quarter	Year-end	Annual
	Yen	Yen		Yen	Yen	Yen
FY2020	―	37.00		―	53.00	90.00
FY2021	―	45.00		―
FY2021 (Forecast)						―	―

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

2 The forecasts of cash dividends for FY2021 is undetermined at this moment.

3. Forecasts for Consolidated Operating Results of FY2021 (1 April 2021 - 31 March 2022)

(Percentage indicates change from the previous fiscal year)

	Net sales		Operating profit	Ordinary profit		Profit attributable to owners of parent	Profit per share
	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Millions of Yen	%	Yen
Full Year	3,400,000	7.0	170,000	-12.6	230,000	-7.4	150,000	2.4	308.89

[Note] Revisions of the latest forecasts for consolidated operating results announced: Yes

• 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	: Yes
2)	Changes in accounting principles other than 1)	: Yes
3)	Changes in accounting estimates	: None
4)	Retrospective restatement	: None

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

			(Shares)
FY2021 Q3	491,122,300	FY2020	491,098,300
FY2021 Q3	5,499,554	FY2020	5,540,488
FY2021 Q3	485,598,889	FY2020 Q3	485,367,150

• 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 statements)

The forward-looking statements are based on currently available information and assumptions, contain risks and uncertainty, and do not constitute guarantees of future achievement. Please note that the future results may greatly vary by the changes of various factors.

Those factors, which may influence the future results, include economic conditions and the trend of demand in major markets and the fluctuations of foreign exchange rates (mainly US dollar/Yen rate, Euro/Yen rate and Indian Rupee/Yen rate).

(Quarterly Results Supplementary Explanatory Materials)

Quarterly Results Supplementary Explanatory Materials will be available on our website (https://www.globalsuzuki.com) on 4 February 2022.

[Attachment]
	Table of Contents
1. Summary of Management Results, etc.................................................................................................	2
(1)	Summary of Management Results and Financial Positions.............................................................................	2
(2) Forecasts for Consolidated Operating Results...................................................................................................	3
2. Quarterly Consolidated Financial Statements and Significant Notes ...............................................	4
(1)	Quarterly Consolidated Balance Sheet ...............................................................................................................	4
(2)	Quarterly Consolidated Statement of Income and Quarterly Consolidated Statement of
	Comprehensive Income........................................................................................................................................	6
(3)	Quarterly Consolidated Statement of Cash Flows ............................................................................................	8
(4) Notes to Quarterly Consolidated Financial Statements ...................................................................................	9
	(Assumption for Going Concern).........................................................................................................................	9
	(Significant Changes in the Amount of Shareholders' Equity)........................................................................	9
	(Application of Accounting Treatment Specific to Preparation of Quarterly Consolidated
	Financial Statements)...........................................................................................................................................	9
	(Changes in Accounting Principles).....................................................................................................................	9
	(Notes to Quarterly Consolidated Statement of Income)..............................................................................	10
	(Segment Information)........................................................................................................................................	10
	(Revenue Recognition) ........................................................................................................................................	13

１

1. Summary of Management Results, etc.

1. Summary of Management Results and Financial Positions

(Management results of FY2021 first nine months)

In April-December period, net sales increased by ¥398.8 billion (18.3%) to ¥2,574.3 billion year-on-year (YoY), operating profit increased by ¥7.9 billion (5.7%) to ¥146.7 billion YoY, ordinary profit increased by ¥29.0 billion (16.6%) to ¥203.9 billion YoY, and profit attributable to owners of parent increased by ¥22.6 billion (19.9%) to ¥135.8 billion YoY.

The Group has applied the "Accounting Standard for Revenue Recognition", etc. from the beginning of FY2021 first quarter, therefore, net sales for FY2021 first nine months decreased by ¥94.9 billion, operating profit, ordinary profit and profit before income taxes decreased by ¥0.3 billion respectively. Please refer to "2. (4) Notes to Quarterly Consolidated Financial Statements - Changes in Accounting Principles" for details.

(Management results of FY2021 last three months)

In October-December period, net sales decreased by ¥4.6 billion (0.5%) to ¥900.7 billion YoY, owing to production decrease due to parts shortage including semiconductors, despite unit price improvements and the depreciation of the Yen. Operating profit decreased by ¥16.3 billion (25.6%) to ¥47.6 billion YoY, mainly owing to increase in raw material prices and various expenses, in addition to production decrease. Ordinary profit decreased by ¥23.0 billion (29.3%) to ¥55.7 billion, and profit attributable to owners of parent decreased by ¥23.6 billion (40.2%) to ¥35.3 billion, compared to the same period of the previous year when gains on sales of investment securities of ¥11.9 billion was recorded.

- Operating results by Segment 1) Automobile Business

Amid the continuing impact of production decrease, net sales decreased by ¥15.1 billion (1.8%) to ¥812.8 billion YoY, and operating profit decreased by ¥19.7 billion (34.4%) to ¥37.7 billion YoY, mainly owing to increase in raw material prices and increase of various expenses.

2) Motorcycle Business

Net sales increased by ¥8.4 billion (14.9%) to ¥64.7 billion YoY, mainly owing to expanded sales of higher range models such as the new Hayabusa and the depreciation of the Yen. However, operating profit became ¥2.3 billion, with an increased amount limited to ¥0.1 billion (7.8%) YoY, mainly owing to increase in raw material prices.

3) Marine Business

Net sales increased by ¥2.0 billion (10.9%) to ¥20.2 billion YoY, and operating profit increased by ¥3.0 billion (83.3%) to ¥6.6 billion YoY. They both marked record highs, owing to the continued strong sales of outboard motors in North America.

4) Other Business

Net sales increased by ¥0.1 billion (3.5%) to ¥3.0 billion YoY, and operating profit increased by ¥0.3 billion (31.8%) to ¥1.0 billion YoY.

- Operating results by Geographical Region

Operating profit decreased YoY in Japan, Europe and Asia.

(Financial Positions of FY2021 third quarter) - Assets, liabilities and net assets

With respect to the financial positions at the end of FY2021 third quarter, total assets were ¥3,993.2 billion (decreased by ¥43.1 billion from the end of the previous consolidated fiscal year). Total liabilities were ¥1,844.7 billion (decreased by ¥159.7 billion from the end of the previous consolidated fiscal year). Total net assets were ¥2,148.5 billion (increased by ¥116.5 billion from the end of the previous consolidated fiscal year).

The shareholders' equity ratio at the end of FY2021 third quarter was 44.9%. As for the borrowings of ¥400.0 billion in FY2020 first three months, the Company will intend to maintain the current borrowing level for the time being owing to the impact of parts shortage including semiconductors and the uncertain outlook of COVID-19. The Company will continue to work for improving the shareholders' equity ratio by improving profitability.

２

- Cash flows

The balance of cash and cash equivalents at the end of FY2021 third quarter amounted to ¥899.7 billion (¥24.7 billion of negative from the end of the previous consolidated fiscal year). Cash flows for FY2021 first nine months are as follows.

1)Cash flows from operating activities

Net cash provided by (used in) operating activities for FY2021 first nine months amounted to ¥185.4 billion of positive. Although profit before income taxes increased YoY, net cash was ¥84.2 billion of negative compared to ¥269.6 billion of positive in the same period of the previous fiscal year due to decreasing of trade payables.

2)Cash flows from investing activities

Net cash provided by (used in) investing activities for FY2021 first nine months amounted to ¥118.9 billion of negative. It was ¥22.0 billion of positive compared to ¥140.9 billion of negative in the same period of the previous fiscal year. It was mainly caused by increasing in proceeds from the sale of property, plant and equipment such as the former Toyokawa Plant site exceeded purchases of property, plant and equipment.

As a result, free cash flow amounted to ¥66.5 billion of positive (¥62.2 billion of negative compared to 128.7 billion of positive in the same period of the previous fiscal year.)

3)Cash flows from financing activities

Net cash provided by (used in) financing activities for FY2021 first nine months amounted to ¥93.1 billion of negative. (It is ¥417.3 billion of negative compared to ¥324.2 billion of positive caused by financing in light of the spread of COVID-19.)

(2) Forecasts for Consolidated Operating Results

With respect to the consolidated business forecasts, the Company has revised the previous forecasts, based on the results for April-December and future prospects as follows. While revisions to unit sales, R&D expenses and foreign exchange assumptions are expected to increase sales and profits, revisions considering increase in various expenses and raw material prices are expected to decrease profits. As a result of the revision, operating profit is kept unchanged from the previous forecast of ¥170 billion.

However, the consolidated business forecasts may fluctuate due to a number of uncertain circumstances, such as supply constraints due to the shortage of semiconductors and the re-expansion of the COVID-19.

(Forecasts of full-year financial results for FY2021)

Net sales	¥3,400.0	billion	(up	7.0% YoY, up ¥200.0 billion from the previous forecast)
Operating profit	¥170.0	billion	(down	12.6% YoY, unchanged from the previous forecast)
Ordinary profit	¥230.0	billion	(down	7.4% YoY, up ¥10.0 billion from the previous forecast)
Profit attributable	¥150.0	billion	(up	2.4% YoY, unchanged from the previous forecast)
to owners of parent
(Foreign Exchange Rate)	¥112/US$, ¥130/Euro, ¥1.51/Indian Rupee

*Forecasts for the consolidated operating results are based on currently available information and assumptions, contain risks and uncertainty and do not constitute guarantees of future achievement. Please note that the actual results may greatly vary by the changes of various factors. Those factors, which may influence the future results, include economic conditions and the trend of demand in major markets and the fluctuations of foreign exchange rates (mainly U.S. dollar/Yen rate, Euro/Yen rate, Indian Rupee/Yen rate).

３