Makita Corporation
Consolidated Financial Results
for the year ended March 31, 2015
(U.S. GAAP Financial Information)(English translation of "KESSAN TANSHIN"
originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS
FOR THE YEAR ENDED MARCH 31, 2015 (Unaudited)
April 28, 2015

Makita Corporation
Stock code: 6586
URL: http://www.makita.co.jp/
Shiro Hori, President, Representative Director

1. Summary operating results of the year ended March 31, 2015 (From April 1, 2014 to March 31, 2015)(1) CONSOLIDATED OPERATING RESULTS
Yen (millions)
For the year ended
For the year ended
March 31, 2014
March 31, 2015%%
Net sales ......................................................................
383,20723.8
414,718
8.2
Operating income ........................................................
54,91421.0
71,905
30.9
Income before income taxes ........................................
56,97424.7
68,39420.0
Net income attributable to Makita Corporation ...........
38,45323.7
45,307
17.8
Comprehensive income ...............................................
72,95616.8
62,655(14.1)
Yen
Earning per share (Basic)
Net income attributable to
Makita Corporation common shareholders .................
Ratio of net income attributable to Makita Corporation
to shareholders' equity .................................................
Ratio of income before income taxes to total assets ....
Ratio of operating income to net sales.........................

283.28333.79

9.5%
11.9%
14.3%

9.8%
12.5%
17.3%

Notes:
1. Amounts of less than one million yen have been rounded.
2. The table above shows the changes in the percentage ratio of net sales, operating income, income before income taxes,
net income attributable to Makita Corporation, and comprehensive income against the corresponding period of the previous
year.
3. Equity in net earnings of affiliated companies (including non-consolidated subsidiaries): NIL(2) SELECTED CONSOLIDATED FINANCIAL POSITION
Yen (millions)

Total assets ..................................................................
Total equity ..................................................................
Total Makita Corporation shareholders' equity............
Total Makita Corporation shareholders' equity ratio tototal assets (%) ............................................................

As ofMarch 31, 2014
519,121439,444435,934

As ofMarch 31, 2015
575,328
489,585
486,021

84.0%

84.5%
Yen

Total Makita Corporation shareholders' equity pershare ............................................................................

3,211.59

3,580.66(3) CONSOLIDATED CASH FLOWS
Yen (millions)
For the year ended
For the year ended
March 31, 2014
March 31, 2015
Net cash provided by operating activities....................
Net cash used in investing activities ............................
Net cash used in financing activities ...........................
Cash and cash equivalents, end of the fiscal year ........

English Translation of "KESSAN TANSHIN" originally issued in Japanese

41,686(20,084)(7,365)81,73235,894(20,096)(12,017)
94,5291

2. Dividend Information
Yen
For the year
ended March 31,
2014

For the year
ended March 31,
2015

For the year
ending March
31, 2016(Forecast)

18.00
73.00
91.00

18.00
100.00118.0018.00(Note)(Note)Cash dividend per share:
Interim.....................................................................
Year-end ..................................................................
Total ........................................................................

Yen (millions)
Total cash dividend ......................................................
12,352
16,017
Dividend payout ratio (%) ...........................................
32.1%
35.4%
Dividend to shareholders' equity ratio (%) ..................
3.1%
3.5%
Note:
While the Corporation has set forth under the Articles of Corporation of the Corporation that the record date for thepayment of dividend shall be the last day of a relevant period, at the present time, the projected amount of dividends
as of the said record date has not been determined yet. For further details, refer to “Explanation regarding proper useof business forecasts, and other significant matters” on page 3.
3. Consolidated Financial Performance Forecast for the year ending March 31, 2016 (From April 1, 2015 toMarch 31, 2016)
Yen (millions)
For the year ending
For the six months ending
March 31, 2016
September 30, 2015
Net sales ......................................................................
Operating income ........................................................
Income before income taxes ........................................
Net income attributable to Makita Corporation...........

200,800
29,50027,90019,000%(3.3)(22.3)(24.8)(25.5)

400,000
56,50053,00036,000%(3.5)(21.4)(22.5)(20.5)

Yen
Earning per share (Basic)
Net income attributable to
Makita Corporation common shareholders .................

139.98265.22

4. Others(1) Changes in important subsidiaries for the fiscal year (Changes in specified subsidiaries accompanied by changes inscope of consolidation): None
(2) Changes in accounting policies:
1. Changes due to revisions to accounting standards: None
2. Changes due to other reasons: None
(3) Number of shares outstanding (common stock)
1. Number of shares issued (including treasury stock):
2. Number of treasury stock:
3.Average number of shares outstanding:

As of March 31, 2015:
As of March 31, 2014:
As of March 31, 2015:
As of March 31, 2014:
For the year ended March 31,2015
For the year ended March 31,2014

English Translation of "KESSAN TANSHIN" originally issued in Japanese

140,008,760
140,008,760
4,273,892
4,271,134
135,736,215
135,740,827

2

Information regarding financial statements audit
This consolidated financial results report is not subject to a financial statements audit stipulated under the Financial
Instruments and Exchange Act. As of the release date of this document, the financial statements audit under the
Financial Instruments and Exchange Act has not been completed.
Explanation regarding proper use of business forecasts, and other significant matters
1.
Regarding the assumptions for the forecasts and other matters, refer to [Operating results] Section 2 “Outlook
for the year ending March 31, 2016” on page 5. The financial forecast given above are based on information as
available at the present time, and include potential risks and uncertainties. As a consequence of the factors above
and other, actual results may vary from the forecasts provided above.
2.
Makita's basic policy on the distribution of profits is to maintain a consolidated dividend payout ratio of 30% or
greater, with a lower limit on annual cash dividends of 18 yen per share. However, in the event special
circumstances arise, computation of the amount of dividends will be based on consolidated net income
attributable to Makita Corporation after certain adjustments.
The Board of Directors plans to meet in April 2016 for a report on earnings for the year ending March 31, 2016.
At the time, in accordance with the basic policy regarding profit distribution mentioned above, the Board of
Directors plans to propose a dividend equivalent to at least 30% of net income attributable to Makita Corporation.
The Board of Directors will submit this proposal to the General Meeting of Shareholders scheduled for June
2016.
The consolidated dividend payout ratio is calculated as annual dividends per share divided by consolidated net
income attributable to Makita Corporation per share (after adjustments for special circumstances) and multipliedby 100.

English Translation of "KESSAN TANSHIN" originally issued in Japanese31. OPERATING RESULTS
1. Operating results(1) Outline of operations results for the year ended March 31, 2015
Looking at the global economic situation for the year ended March 31, 2015, in Western Europe, the U.K.
economy remained solid, while economic growth slowed in the euro zone. The Russian economy faced a tougher
situation due to soured relations with Europe and the U.S. over political uncertainty in Ukraine and the economic
sanctions. Meanwhile, the U.S. economy kept growing against the backdrop of solid consumer spending and housing
investment. In Asia, the overall economy followed a moderate recovery track, despite the sluggish growth in China.
The Japanese economy showed signs of recovery, aided by improved corporate capital investment and higher
exports, which more than offset sluggish consumption following the increase of the consumption tax rate.
Under these circumstances, on the development side, Makita was aggressive about developing new products.
Among those launched in the year were high-capacity lithium ion batteries and rechargeable electric power tools thatare compact in size but achieve high output with the installation of brushless electric motors. On the production side,
overseas factories strived to reduce costs while raising local content ratios. To improve product quality and enhance
productivity, overseas factories worked on introducing facilities that require less manpower. On the marketing side,
Makita maintained and enhanced customer-oriented sales and after-sale systems. Specifically, we established a sales
subsidiary in Kazakhstan and relocated offices of our local subsidiaries in Australia and Mexico to upgrade systems
to supply products and services.
Our consolidated net sales for this year increased by 8.2% to 414,718 million yen compared to the previous year,
marking the fifth consecutive year increase and an all-time high. The strong showing was attributed to brisk sales inthe domestic market and steady overseas sales in almost all countries, especially in Western Europe. The strong sales
also reflected the yen’s depreciation against other major currencies such as the dollar and the euro during thereporting year, which generated exchange gains. Operating income increased by 30.9% to 71,905 million yen(operating income ratio: 17.3%) compared to the previous year because striving to reduce costs improved the ratio of
cost against net sales. Income before income taxes and net income attributable to Makita Corporation increased by
20.0% to 68,394 million yen (income before income taxes ratio: 16.5%) and by 17.8% to 45,307 million yen (netincome attributable to Makita Corporation ratio: 10.9%) compared to the previous year.
Net sales results by region were as follows:
Net sales in Japan increased by 2.6% to 67,740 million yen compared to the previous year. This was because of
brisk sales of lithium ion batteries, which more than offset negative effects from a fall in housing starts.
Net sales in Europe increased by 6.0% to 175,254 million yen. This was because of steady demand in Western
Europe and the yen’s depreciation against the euro.
Net sales in North America increased by 14.6% to 57,168 million yen. This was because of favorable sales tohome improvement retailers compared to the previous year, as well as the yen’s depreciation against the US dollar.
Net sales in Asia mixed from country to country, but increased by 13.3% to 39,643 million yen. This was becauseof firm sales mainly in countries where Makita had established sales subsidiaries in recent years, such as Vietnam
and Malaysia.
The sales situations in other regions are as follows. Net sales in Central and South America increased by 7.9%
to 30,287 million yen compared to the previous year due to steady sales, despite a stagnant market. In addition, net
sales in Oceania increased by 14.2% to 23,859 million yen and those in the Middle East and Africa increased by
15.5% to 20,867 million yen because demand recovered in these regions.

English Translation of "KESSAN TANSHIN" originally issued in Japanese4(2) Outlook for the year ending March 31, 2016
In the future, demand is unlikely to grow sharply in advanced countries. Meanwhile, competition between
companies is expected to intensify. In emerging countries including Asia, where economy is expected to expand overthe medium term, the needs for affordable products are forecast to grow. With foreign exchange rate trends andinternational political situations being unpredictable, Makita is expected to continue facing a challenging businessenvironment.
In projecting the operational results for the next fiscal year, we use the following assumptions:・ A sharp rise in housing starts is unlikely in Japan.
・ In U.S., competition is expected to intensify further, though demand for power tools is likely to increase due
to gradual economic recovery.
・ Rapid recovery of the Russian economy is unlikely.; and・ It is hard to expect an increase in demand for power tools in emerging countries due to the stagnation of
economic activities caused by uncertain political situations.
To cope with these assumed conditions, Makita will:・ Strengthen its R&D and product development capabilities with respect to environmentally friendly power
tools and gardening equipment;
・ Promote the development of products that meet needs in both developed countries and emerging countries,
which have been becoming bipolar;
・ Implement measures to improve the efficiency of production, procurement and distribution, while taking
advantage of global production organizations; and・ Strive to improve its marketing and brand power by fine-tuned response to customer needs and further
improved after-sales service.
On the basis of these factors, Makita forecasts the following performance for the year ending March 31, 2016.
Consolidated Financial Performance Forecast for the Year Ending March 31, 2016
Yen (millions)
For the year ending
For the six months ending
March 31, 2016
September 30, 2015
Net sales...................................................................
200,800
400,000
Operating income.....................................................
29,50056,500
Income before income taxes ....................................
27,90053,000Net income attributable to Makita Corporation .......
19,00036,000[Preconditions]
The above forecast is based on the assumption of exchange rates of 120 yen to the U.S. dollar and 125 yen to theeuro.
[Reference]
The actual exchange rate for the year ended March 31, 2015 was 109.8 yen to the U.S. dollar and 138.7 yen to the
euro.
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements based on Makita's own projections and estimates. The power
tools market, where Makita is mainly active, is subject to the effects of rapid shifts in economic conditions, demandfor housing, currency exchange rates, changes in competitiveness, and other factors. Due to the risks anduncertainties involved, actual results could differ substantially from the content of these statements. Therefore, thesestatements should not be interpreted as representation where such objectives will be achieved.

English Translation of "KESSAN TANSHIN" originally issued in Japanese52. Financial position(1) Analysis on assets, liabilities and total assets
Total assets as of the end of the year increased by 56,207 million yen to 575,328 million yen compared to theprevious year. The increase was mainly due to an increase in “Short-term investments” and “Inventories.”
Total liabilities as of the end of the year increased by 6,066 million yen to 85,743 million yen compared to theprevious year. This increase was mainly due to the increase in “Trade notes and accounts payable” and “Long-term
Deferred income taxes.”
Total equity as of the end of the year increased by 50,141 million yen to 489,585 million yen compared to theprevious year. This increase was mainly attributable to the increase in “Retained earnings” and “Accumulated othercomprehensive income”.
(2) Analysis on cash flows and financial ratios
Total cash and cash equivalents at the end of the year amounted to 94,529 million yen, increased by 12,797
million yen compared to the end of the previous year.
(Net Cash Provided by Operating Activities)
Net cash provided by operating activities amounted to 35,894 million yen, up 5,792 million yen over theprevious year (41,686 million yen for the previous year) because inventories increased.
(Net Cash Used in Investing Activities)
Net cash used in investing activities amounted to 20,096 million yen, up 12 million yen over the previous year
(20,084 million yen for the previous year).
(Net Cash Used in Financing Activities)
Net cash used in financing activities amounted to 12,017 million yen, up 4,652 million yen over the previous
year (7,365 million yen for the previous year) because we increased payments on short term borrowings and cash
dividends paid from the previous year.

(Reference)
Trend information of financial ratios

Ratio of operating income to net sales..............
Equity ratio .......................................................
Equity ratio based on a current market price ....
Interest-bearing liabilities to net cash provided
by operating activities (years) ..........................
Interest coverage ratio (times) ..........................

2011
15.4%
82.5%
143.1%
0.0
400.3

As of (year ended) March 31,
2012
2013
2014
16.4%
14.7%
14.3%
83.8%
84.7%
84.0%
117.6%
131.6%
148.3%
0.3
43.5

0.0
219.2

0.1
213.8

2015
17.3%
84.5%
147.2%
0.1
236.1

Definitions:Operating income to net sales ratio: operating income/net sales
Equity ratio: shareholders' equity/total assets
Equity ratio based on a current market price: total current market value of outstanding shares/total assets
Interest-bearing liabilities to net cash provided by operating activities: interest-bearing liabilities /net cash inflow from operating activities
Interest coverage ratio: net cash inflow from operating activities/interest expense
Notes:
1. All figures are calculated based on a consolidated basis.
2. The total current market value of outstanding shares is calculated by multiplying the closing market price at the period end by
the number of outstanding shares (after deducting the number of treasury stock.)
3. Interest-bearing debt includes all consolidated balance-sheet debt on which interest payments are made.

English Translation of "KESSAN TANSHIN" originally issued in Japanese63. Basic policy regarding profit distribution and cash dividend for the fiscal 2015 and 2016
Makita's basic policy on the distribution of profits is to maintain a consolidated dividend payout ratio of 30% or
greater, with a lower limit on annual cash dividends of 18 yen per share. However, in the event special
circumstances arise, computation of the amount of dividends will be based on consolidated net income attributable
to Makita Corporation after certain adjustments. With respect to repurchases of its outstanding shares, Makita aims
to implement a flexible capital policy, augment the efficiency of its capital employment, and thereby boost
shareholder profit. Also Makita continues to consider execution of own share repurchases in light of trends in stock
prices.
Makita intends to maintain a financial position strong enough to withstand the challenges associated withchanges in its operating environment and other changes and allocate funds for strategic investments aimed at
expanding its global operations.
Our forecast for dividends is as follows;
For the year ended
March 31, 2015
(Result and Forecast)

For the year ending
March 31, 2016
(Forecast)

Cash dividend per share:
Interim.......................................................................

18.00 yen

Year-end ....................................................................

(With 100 year memorial
dividend of 15 yen)

18.00 yen

100.00 yen (Note1)(Note2)118.00 yen (Note1)(With 100 year memorial(Note2)

Total ..........................................................................
dividend of 15 yen)
Notes:For the fiscal year ended March 31, 2015, deferred tax assets were reversed at our Brazil subsidiary. As aresult, net income attributable to Makita Corporation decreased by about 1.2 billion yen. When calculating
the amount of dividends, the amount of approximately 1.2 billion yen was added as a special circumstance toconsolidated net income attributable to Makita Corporation.
The Corporation marked the 100th anniversary of its founding on March 21, 2015. We would like to express
our gratitude to shareholders and other stakeholders for the long-term support and patronage they have all
extended to us. As a token of our gratitude to shareholders, we have decided to pay a commemorative
year-end dividend of 15 yen per share for the fiscal year.
Consequently, the corporation plans to propose that the annual cash dividend of 118 yen. The year-end cash
dividend after deduction of the interim cash dividend of 18 yen is calculated to 100 yen per share.

2. The Board of Directors plans to meet in April 2016 for a report on earnings for the year ending March 31,
2016. At such time, in accordance with the basic policy regarding profit distribution mentioned above, theBoard of Directors plans to propose a dividend equivalent to at least 30% of net income attributable to
Makita Corporation. The Board of Directors will submit this proposal to the General Meeting of
Shareholders scheduled for June 2016. However, if certain special circumstances arise, computation of theamount of dividends will be based on consolidated net income attributable to Makita Corporation after
certain adjustments.
The consolidated dividend payout ratio is calculated as annual dividends per share divided by consolidated
net income attributable to Makita Corporation per share (after adjustments for special circumstances) andmultiplied by 100.

English Translation of "KESSAN TANSHIN" originally issued in Japanese7

2. GROUP STRUCTURE
Makita Corporation (the "Corporation") and its consolidated subsidiaries (collectively "Makita") mainly
manufacture and sell power tools. Makita is comprised of the Corporation and 51 consolidated subsidiaries.
Group Structure of Makita is outlined as follows;

Outside Customers
Overseas sales and manufacturing subsidiaries: 3

Overseas sales subsidiaries: 40

Makita U.S.A. Inc.

Dolmar GmbH
(Germany)

Domestic

Makita Canada Inc.

(Manufacture and sales of
OPE products)

Makita (U.K.) Ltd.
Makita France SAS

MakitaCorporation

Makita Nederland B.V.
(The Netherlands)
S.A. Makita N.V. (Belgium)

Makita (China) Co., Ltd.
Makita do Brasil
Ferramentas Eletricas
Ltda.

Other subsidiary: 1
Overseas manufacturingsubsidiaries: 5

Makita S.p.A. (Italy)
Makita Werkzeug GmbH (Germany)

Makita Corporation ofAmerica

Makita Werkzeug Gesellschaft
m.b.H. (Austria)

Makita Manufacturing
Europe Ltd. (U.K.)

Makita Sp. z o.o. (Poland)

Makita (Kunshan) Co.,Ltd.

Makita, S.A. (Spain)
Makita Oy (Finland)lk

Makita EU S.R.L.
(Romania)

Makita (Australia) Pty. Ltd.
+

Makita Manufacturing(Thailand) Co., Ltd.

Makita Gulf FZE (U.A.E.)
Other overseas sales subsidiaries: 26

Other overseas subsidiaries: 2

Makita International Europe Ltd. (U.K.)(Coordination of our overall operations in Europe)

Makita Europe N.V. (Belgium)(Coordination of our overall sales operations in Europe)

Supply finished goods

English Translation of "KESSAN TANSHIN" originally issued in Japanese

Supply parts8

3. MANAGEMENT POLICIES
1. Basic Policies
Makita has set itself the goal of consolidating a strong position in the global power tool industry as a global
supplier of a comprehensive range of power tools that assist people in creating homes and living environments. In
order to achieve this, Makita has established strategic business approaches and quality policies such as "Amanagement approach in symbiosis with society" "Managing to take good care of our customers," "Proactive,
sound management" and "Emphasis on trustworthy and reliable corporate culture as well as management to drawout the capabilities of each employee." Makita aims to generate solid profitability so that Makita can promote its
sustained corporate development and meet the needs of its shareholders, customers, and employees as well as
regional societies where Makita operates.
2. Target Management Indicators
Makita believes that attaining sustained growth and maintaining high profitability are the ways to increase
corporate value. Makita's specific numerical target is to maintain a stable ratio of operating income to net sales on aconsolidated basis of 10% or more.
3. Medium-to-Long-Term Management Strategy
Makita aims to establish high brand recognition and become a “Strong Company” capable of acquiring andmaintaining the top market share as an international total supplier of power tools for professional use, pneumatic
tools, gardening equipment and other tools in each international region. To achieve these objectives, we will put
focus on maintaining and expanding our efforts to develop new products that guarantee great satisfaction toprofessional users, our global production structure realizing both high quality and cost competitiveness at the sametime, and the best marketing and after-sale service structure of the power tools industry in Japan and ininternational regions.
In order to carry out this management strategy, Makita is focusing its management resources on theprofessional-use tool category, while maintaining its strong financial position that can withstand any unpredictablechanges in the operational environment including those related to foreign exchange risk and country risk.
4. Preparing for the Future
Makita will strive to reinforce its R&D and product development activities to deliver more user-friendly andearth-conscious power tools and gardening equipment. It will also strengthen the technical development of compact
engines. The global production organizations will be strengthened to respond to changes in demand conditions.
Sales activities to professional users will be promoted. In addition, activities to maintain and improve our No. 1
sales and after-sales service system in the industry will be aggressively promoted. We strive to improve ourcorporate value.

4. BASIC RATIONALE FOR SELECTION OF ACCOUNTINGSTANDARDS
Makita has adopted the U.S. accounting standards. Makita has paid attention to circumstance of theapplication of the International Financial Reporting Standards (IFRS) both in Japan and overseas.

English Translation of "KESSAN TANSHIN" originally issued in Japanese

95. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Consolidated Balance Sheets
Yen (millions)
As of March 31, 2014
As of March 31, 2015
Composition ratio

Composition ratio

ASSETS
CURRENT ASSETS:
Cash and cash equivalents ................................................

81,732

94,529Time deposits ....................................................................

15,673

15,283

Short-term investments .....................................................

41,04856,076

Notes .............................................................................

1,402

1,315

Accounts........................................................................

64,17664,642Less- Allowance for doubtful receivables .....................

(1,001)(998)

Inventories ........................................................................

156,111

175,186

Deferred income taxes ......................................................

7,231

6,296

Prepaid expenses and other current assets ........................

13,665

16,782

Total current assets ........................................................

380,037

Trade receivables-

73.2%

429,11174.6%

PROPERTY, PLANT AND EQUIPMENT, AT COST:
Land ..................................................................................

22,793

23,104

Building and improvements ..............................................

91,18496,202

Machinery and equipment ................................................

86,59491,353

Construction in progress ...................................................

3,174

3,237

Sub total ......................................................................

203,745

213,896Less- Accumulated depreciation and amortization ...........

(112,143)(118,084)

Total net property, plant and equipment .........................

91,602

17.6%

95,812

16.7%

INVESTMENTS AND OTHER ASSETS:
Investments .......................................................................

30,41331,395

Goodwill ...........................................................................

721

721

Other intangible assets, net ...............................................

4,692

4,563

Deferred income taxes ......................................................

623

629

Other assets .......................................................................

11,03313,097

Total investments and other assets.................................

47,4829.2%

50,405

8.7%

Total assets ..............................................................................

519,121100.0%

575,328100.0%English Translation of "KESSAN TANSHIN" originally issued in Japanese

10Yen (millions)
As of March 31, 2014
As of March 31, 2015
Composition ratio

Composition ratio

LIABILITIESCURRENT LIABILITIES:
Short-term borrowings ......................................................

4,147

4,647

Trade notes and accounts payable.....................................

21,40625,124

Other payables ..................................................................

6,647

6,140

Accrued expenses .............................................................

10,566

10,594

Accrued payroll ................................................................

9,083

9,568

Income taxes payable........................................................

8,210

5,353

Deferred income taxes ......................................................

1,029

1,529

Other liabilities .................................................................

8,199

7,911

Total current liabilities ..................................................

69,28713.3%

70,866

12.3%

LONG-TERM LIABILITIES:Long-term indebtedness....................................................

16

383

Accrued retirement and termination benefits ....................

3,689

3,701

Deferred income taxes ......................................................

5,332

9,521

Other liabilities .................................................................

1,353

1,272

Total long-term liabilities ..............................................

10,3902.0%

14,877

2.6%

Total liabilities ...............................................................

79,67715.3%

85,74314.9%

EQUITYMAKITA CORPORATION SHAREHOLDERS’
EQUITY:
Common stock .................................................................

23,80523,805Additional paid-in capital.................................................

45,42145,421

Legal reserve ....................................................................

5,669

5,669

Retained earnings .............................................................

366,919399,874

Accumulated other comprehensive income ...................

5,693

22,842

Treasury stock, at cost ......................................................

(11,573)(11,590)

Total Makita Corporation shareholders’ equity ...................

435,93484.0%

486,02184.5%

NON-CONTROLLING INTEREST ...................................

3,510

0.7%

3,564

0.6%

Total equity ....................................................................

439,44484.7%

489,58585.1%

Total liabilities and equity .......................................................

519,121100.0%

575,328100.0%English Translation of "KESSAN TANSHIN" originally issued in Japanese112. Consolidated Statements of Income
Yen (millions)
For the year ended
For the year ended
March 31, 2015
March 31, 2014
Composition ratio

Composition ratio

383,207 100.0%

414,718 100.0%

Cost of sales .....................................................................................

244,053

63.7%

257,582

62.1%

GROSS PROFIT .................................................................................

139,15436.3%

157,136

37.9%

Selling, general, administrative and others, net ...............................

84,24022.0%

85,231

20.6%

OPERATING INCOME ......................................................................

54,914

14.3%

71,905

17.3%

NET SALES ........................................................................................

OTHER INCOME (EXPENSE):
Interest and dividend income ...........................................................

2,326

2,639

Interest expense ................................................................................

(202)

(113)

Exchange losses on foreign currency transactions, net ....................

(1,700)(6,480)Realized gains on securities, net ....................................................

1,636

443

Total other income (expense), net .................................................

2,060

0.6%

(3,511)(0.8%)

INCOME BEFORE INCOME TAXES ...............................................

56,97414.9%

68,394

16.5%

Provision for income taxes:
Current.............................................................................................

18,74918,889Deferred ...........................................................................................

(518)

3,824

Total income tax expense ............................................................

18,231

4.8%

22,713

5.5%

NET INCOME ....................................................................................

38,743

10.1%

45,681

11.0%

Less-Net income attributable to the non-controlling interest ..............

290

0.1%

374

0.1%

NET INCOME ATTRIBUTABLE TO MAKITA CORPORATION ...

38,45310.0%

45,307

10.9%

English Translation of "KESSAN TANSHIN" originally issued in Japanese12Consolidated Statements of Comprehensive Income
Yen (millions)
For the year ended
For the year ended
March 31, 2015
March 31, 2014
38,74345,681

Foreign currency translation adjustment ..................................

30,204

14,660

Unrealized holding gains on available-for-sale securities ..................

2,687

1,267

Pension liability adjustment .....................................................

1,322

1,047

Total other comprehensive income .....................................

34,213

16,974COMPREHENSIVE INCOME .................................................

72,95662,655Less-Comprehensive income attributable to thenon-controlling interest ...........................................................

746

199

COMPREHENSIVE INCOME ATTRIBUTABLE TO
MAKITA CORPORATION.....................................................

72,21062,456NET INCOME ............................................................................
OTHER COMPREHENSIVE INCOME:

English Translation of "KESSAN TANSHIN" originally issued in Japanese13

3. Consolidated Statements of Cash Flows
Yen (millions)
For the year ended
March 31, 2014

For the year ended
March 31, 2015

Net income ...........................................................................................
Adjustments to reconcile net income to net cash provided byoperating activities-

38,74345,681

Depreciation and amortization .......................................................

8,622

8,619

Deferred income tax expense (benefit) ..........................................

(518)

3,824

Realized gains on securities, net ....................................................

(1,636)(443)

Gains on disposal or sales of property, plant and equipment, net..

(297)

(304)

Impairment of long-lived assets.....................................................

1,239

310

Trade receivables ........................................................................

(6,092)(1,148)Inventories ..................................................................................

152(18,419)

Trade notes and accounts payable and accrued expenses ...........

1,441

1,903

Income taxes payable .................................................................

907(4,828)

Accrued retirement and termination benefits .............................

(1,323)(352)

Other, net ........................................................................................

448

1,051

Net cash provided by operating activities .......................................

41,68635,894

Capital expenditures, including interest capitalized .............................

(11,417)(12,124)

Purchases of available-for-sale securities .............................................

(19,650)(15,682)

Proceeds from sales of available-for-sale securities .............................

7,730

919

Proceeds from maturities of available-for-sale securities .....................

200

100

Proceeds from maturities of held-to-maturity securities.......................

3,800

3,000

Proceeds from sales of property, plant and equipment .........................

1,259

1,536

Investment in time deposit ...................................................................

(16,549)(19,885)

Withdrawal of time deposit ..................................................................

15,12322,434

Other, net ..............................................................................................

(580)

(394)

Net cash used in investing activities ...............................................

(20,084)(20,096)-

1,042

CASH FLOWS FROM OPERATING ACTIVITIES:

Changes in assets and liabilities-

CASH FLOWS FROM INVESTING ACTIVITIES:CASH FLOWS FROM FINANCING ACTIVITIES:
Additions to borrowings with original maturities of three months or
less, net .................................................................................................
Additions to borrowings with original maturities of more than threemonths ..................................................................................................
Payments on borrowings with original maturities of more than threemonths ..................................................................................................

4,002

3,419

(1,611)(4,443)

Additions to long-term indebtedness ....................................................

-

446

Purchase of treasury stock, net .............................................................

(46)

(17)

Cash dividends paid..............................................................................

(9,773)(12,352)

Other, net ..............................................................................................

63

(112)

Net cash used in financing activities ..............................................
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS.......................................................................

(7,365)(12,017)

5,212

9,016

NET CHANGE IN CASH AND CASH EQUIVALENTS ..................

19,44912,797

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR........

62,283

81,732

CASH AND CASH EQUIVALENTS, END OF PERIOD YEAR ......

81,732

94,529English Translation of "KESSAN TANSHIN" originally issued in Japanese14

4. Notes on the assumptions for a going concern: None
5. Significant Accounting Policies(1) Scope of consolidation and equity method
Number of consolidated subsidiaries: 51
Major subsidiaries are as follows;
Makita U.S.A. Inc., Makita (U.K.) Ltd., Makita Werkzeug GmbH (Germany),
Makita Oy (Finland), Makita Gulf FZE (UAE), Makita (China) Co., Ltd., Makita (Kunshan) Co., Ltd.,
Makita (Australia) Pty. Ltd. Makita do Brasil Ferramentas Eletricas Ltda.
(2) Significant Accounting Policies (Summary)
Consolidated financial statements are prepared in conformity with accounting principles generally accepted in the
United States of America.
1. Short-term investments and Investments
Makita classifies investments in debt and marketable equity securities as available-for-sale or held-to-maturity
securities. Makita does not hold any marketable or investment securities that are bought and held primarily forthe purpose of sale in the near term.
2. Inventories
Inventory costs include raw materials, labor and manufacturing overheads. Inventories are valued at the lowerof cost or market price, with cost determined principally based on the average cost method.
3. Property, Plant and Equipment and Depreciation
Property, plant and equipment is stated at cost. Makita has adopted the straight-line method over the estimateduseful lives for computing depreciation.
4. Income Taxes
Deferred income tax assets and liabilities are recognized for the future tax consequences attributable totemporary differences between the financial statement carrying amounts of existing assets and liabilities andtheir respective tax bases and operating loss and tax credit carry forwards. The effect on deferred income tax
assets and liabilities of a change in tax rates or laws is recognized in income in the period that includes theenactment date.
5. Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimatesand assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets
and liabilities at the date of the consolidated financial statements and the reported amounts of revenues andexpenses during the reporting period. Actual results could differ from those estimates.
6. Revenue Recognition
Makita recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred orservices are rendered, the sales price is fixed or determinable and collectibility is reasonably assured.
(3) Changes in accounting principles, procedures and presentations: None

English Translation of "KESSAN TANSHIN" originally issued in Japanese15

6. Notes to Consolidated Financial Statements
Condensed Operating Segment Information
Yen (millions)
For the year ended March 31, 2014
North
Asia
Other area
Total
America

Eliminations

Consolidated

383,207
221,622(221,622)

383,207-

59,347604,829(221,622)

383,207

152,607

55,930542,953(214,660)

328,293

21,8683,417

61,876(6,962)

54,914

Eliminations

Consolidated

Japan

Europe(2) Inter-segment ........

88,60556,847

166,768
4,684

50,7303,373

17,860156,615

59,244103

Total .................

145,452

171,452

54,103

174,475

Operating expenses........

126,662

156,036

51,718Operating income ..........

18,79015,416

2,385

Sales:(1) Externalcustomers ................

Yen (millions)
For the year ended March 31, 2015
North
Asia
Other area
Total
AmericaJapan

Europe(2) Inter-segment ........

91,25878,167

175,680
5,800

58,962
3,554

22,145
181,10266,673
157

414,718
268,780(268,780)

414,718-

Total .................

169,425

181,480

62,516203,247

66,830683,498(268,780)

414,718

Operating expenses........

146,091

161,741

60,923

175,585

63,030607,370(264,557)

342,813

Operating income ..........

23,334

19,7391,593

27,662

3,800

76,128(4,223)

71,905

Sales:(1) Externalcustomers ................

Net sales by product categories
Yen (millions)
For the year ended
For the year ended
March 31, 2014
March 31, 2015
Composition ratio

Composition ratio

Increase(Decrease)(%)

Finished goods.............................................................
Parts, repairs and accessories ......................................

326,515
56,69285.2
14.8

349,832
64,886

84.4
15.6

7.1
14.5

Total net sales..........................................................

383,207

100.0

414,718

100.0

8.2

English Translation of "KESSAN TANSHIN" originally issued in Japanese

16

Information per share
Yen

Total Makita Corporation Shareholders' equity
per share ....................................................................

As ofMarch 31, 2014

As ofMarch 31, 2015

3,211.59

3,580.66
Yen

For the year ended
March 31, 2014
Earning per share (Basic)
Net income attributable to
Makita Corporation common shareholders ...............
Note:

283.28For the year ended
March 31, 2015
333.79Net income per share is calculated on the basis of the average number of shares outstanding during the year.
Average number of shares outstanding is as follows:
For the year ended March 31, 2015: 135,736,215
For the year ended March 31, 2014: 135,740,827

English Translation of "KESSAN TANSHIN" originally issued in Japanese17Short-term investments and Investments
Yen (millions)

As of March 31, 2014
Short-term
investments:

Available-for-salesecurities:

Held-to-maturity
securities:

Total
Investments: Available-for-salesecurities:
Held-to-maturity
securities:

Total

Corporate debt securities
Investments in trusts
MMF and FFF
Marketable equity
securities
Total
Corporate debt securities
Government debt
securities
Public debt securities(except Government
debt securities)
Total
Marketable equity
securities
Total
Corporate debt securities
Government debt
securities
Public debt securities(except Government
debt securities)
Total

583
3,489
32,022Grossunrealized
holding
gains
11
1,006
-

Gross
unrealized
holding
losses-398

531

36,492
2,508

Fair value

Carrying
amount594
4,495
32,022594
4,495
32,022

-

929

929

1,548
3

-

38,0402,511

38,040
2,508

100

-

-

100

100

400

2

-

402

400

3,008
39,500

5
1,553

-

3,013
41,0533,008
41,04816,93012,195-29,12529,125

16,930901

12,19515-

29,125916

29,125
901

-

-

-

-

-

-

-

-

-

-

901
17,831

15
12,210-916
30,041901
30,026

Cost

In addition to the above investments, Makita holds 387 million yen of non-marketable equity securities (carried at cost).

English Translation of "KESSAN TANSHIN" originally issued in Japanese18Yen (millions)

As of March 31, 2015
Short-term
investments:

Available-for-salesecurities:

Held-to-maturity
securities:

Total
Investments: Available-for-salesecurities:
Held-to-maturity
securities:

Corporate debt
securities
Investments in trusts
MMF and FFF
Marketable equity
securities
Total
Corporate debt
securities
Government debt
securities
Public debt securities(except Government
debt securities)
Total
Marketable equity
securities
Total
Corporate debt
securities
Government debt
securities
Public debt securities(except Government
debt securities)
Total

Total

Gross
unrealized
holding
gains

Gross
unrealized
holding
lossesFair value

Carrying
amount

498

-

-

498

498

3,012
49,391

1,025
-

14
-

4,023
49,391

4,023
49,391

717

1,147

-

1,864

1,864

53,6182,172

1455,77655,776

300

-

-

300

300

-

-

-

-

-

-

-

-

-

-

300
53,918

2,172

14

300
56,076300
56,076

16,861

15,124

1,577

30,40830,40816,861

15,124

1,577

30,40830,408

600

21

-

621

600

-

-

-

-

-

-

-

-

-

-

600
17,46121
15,145

1,577

621
31,029600
31,008Cost

In addition to the above investments, Makita holds 387 million yen of non-marketable equity securities (carried at cost).

Significant Subsequent Events: None

English Translation of "KESSAN TANSHIN" originally issued in Japanese

19

SUPPORT DOCUMENTATION (CONSOLIDATED)
1. Consolidated Financial Results and Forecast
For the year ended
March 31, 2013

Yen (millions)
For the year ended
March 31, 2014(%)

Net sales ............................................................
Domestic .......................................................
Overseas ........................................................
Operating income ..............................................
Income before income taxes ..............................
Net income attributable to Makita
Corporation........................................................
Earning per share (Basic)
Net income attributable to
Makita Corporationcommon shareholders (Yen) ............................
Cash dividend per share (Yen) .........................
Dividend payout ratio (%) .................................
Number of Employees .......................................

For the year ended
March 31, 2015

(%)

(%)

309,630
56,555
253,075
45,36645,691

4.7
6.4
4.3
(6.5)
(2.7)

383,207
66,019317,188
54,91456,974

23.8
16.7
25.3
21.0
24.7

414,718
67,740346,978
71,90568,394

8.2
2.6
9.4
30.9
20.0

31,076(4.4)

38,45323.7

45,30717.8

228.92
69.00
30.1
12,680283.2891.00
32.1
12,804333.79118.0035.4
13,835

Yen (millions)
For the six months
For the year ending
ending September
March 31, 201630, 2015(Forecast)(Forecast)

Net sales ...........................................................................................................
Domestic ......................................................................................................
Overseas .......................................................................................................
Operating income .............................................................................................
Income before income taxes .............................................................................
Net income attributable to Makita Corporation ................................................
Earning per share (Basic)
Net income attributable to Makita Corporation common shareholders (Yen) ..
Cash dividend per share (Yen)..........................................................................

(%)

(%)

200,800 (3.3)
31,500 (2.9)
169,300 (3.4)
29,500 (22.3)
27,900 (24.8)
19,000 (25.5)

400,000 (3.5)
64,800 (4.3)
335,200 (3.4)
56,500 (21.4)
53,000 (22.5)
36,000 (20.5)

139.9818.00

265.22(Note 2)

Notes:
1. The table above shows the changes in the percentage ratio of Net sales, Operating income, Income before income taxes, and Net
income attributable to Makita Corporation against the previous year.
2. Regarding our forecast for dividends, refer to page 7.

English Translation of "KESSAN TANSHIN" originally issued in Japanese202. Consolidated Net Sales by Geographic Area

Japan ..............................................................................
Europe ...........................................................................
North America ...............................................................
Asia ...............................................................................
Other regions .................................................................
Central and South America .....................................
Oceania....................................................................
The Middle East and Africa ....................................
Total...............................................................................

For the year ended
March 31, 2013

Yen (millions)
For the year ended
March 31, 2014

For the year ended
March 31, 2015

(%)

(%)

(%)

56,555125,024
41,483
29,106
57,462
22,91918,84815,695
309,630

6.4
1.4
10.7
11.9
3.0
(1.9)
6.0
7.2
4.7

66,019165,357
49,89135,004
66,93628,06920,80518,062
383,207

16.7
32.3
20.3
20.3
16.5
22.5
10.4
15.1
23.8

67,740175,254
57,16839,64374,91330,28723,75920,867414,718

2.6
6.0
14.6
13.3
11.9
7.9
14.2
15.5
8.2

Note: The table above sets forth Makita's consolidated net sales by geographic area based on the customer’s location
for the years presented. Accordingly, it differs from operating segment information on page 16. The table aboveshows the changes in the percentage ratio of net sales compared to the corresponding period of the previous year.
3. Exchange Rates
Yen
For the year ending
March 31, 2016

For the year ended
March 31, 2013

For the year ended
March 31, 2014

For the year ended
March 31, 2015

82.91
106.78100.17134.21109.76
138.69120
125

For the year ended
March 31, 2013

For the year ended
March 31, 2014

For the year ended
March 31, 2015

Yen/U.S. Dollar ......................
Yen/Euro .................................

(Forecast)

4. Production Ratio (unit basis)

Domestic ...................................................................
Overseas ....................................................................

11.6%
88.4%

11.2%
88.8%

10.3%
89.7%

5. Consolidated Capital Expenditures, Depreciation and Amortization, and R&D cost
Yen (millions)

Capital expenditures ............
Depreciation andamortization ......................
R&D cost .............................

For the year ending
March 31, 2016

For the year ended
March 31, 2013

For the year ended
March 31, 2014

For the year ended
March 31, 2015

11,481

11,417

12,124

14,500

7,542
8,396

8,622
8,720

8,619
9,117

9,200
10,700English Translation of "KESSAN TANSHIN" originally issued in Japanese(Forecast)21