Makita Corporation
Consolidated Financial Results
for the year ended March 31, 2014
(U.S. GAAP Financial Information)(English translation of "KESSAN TANSHIN"
originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS
FOR THE YEAR ENDED MARCH 31, 2014 (Unaudited)
April 28, 2014

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, 2014 (From April 1, 2013 to March 31, 2014)(1) CONSOLIDATED OPERATING RESULTS
Yen (millions)
For the year ended
For the year ended
March 31, 2013
March 31, 2014%%
Net sales ......................................................................
309,630
4.7
383,207
23.8
Operating income ........................................................
45,366(6.5)
54,914
21.0
Income before income taxes ........................................
45,691(2.7)
56,974
24.7
Net income attributable to Makita Corporation ...........
31,076(4.4)
38,453
23.7
Comprehensive income ...............................................
62,444119.9
72,956
16.8
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.........................

228.92283.28

8.9%
11.1%
14.7%

9.5%
11.9%
14.3%

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 (loss) against the corresponding period of theprevious 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, 2013
440,974
376,332
373,543

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

84.7%

84.0%
Yen

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

2,751.78

3,211.59(3) CONSOLIDATED CASH FLOWS
Yen (millions)
For the year ended
For the year ended
March 31, 2013
March 31, 2014
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

38,364(15,414)(10,650)
62,283

41,686(20,084)(7,365)81,7321

2. Dividend Information
Yen
For the year
ended March 31,
2013

For the year
ended March 31,
2014

For the year
ending March
31, 2015(Forecast)

15.00
54.00
69.00

18.00
73.00
91.00

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

Yen (millions)
Total cash dividend ......................................................
9,366
12,352
Dividend payout ratio (%) ...........................................
30.1%
32.1%
Dividend to shareholders' equity ratio (%) ..................
2.7%
3.1%
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, 2015 (From April 1, 2014 toMarch 31, 2015)
Yen (millions)
For the year ending
For the six months ending
March 31, 2015
September 30, 2014
Net sales ......................................................................
Operating income ........................................................
Income before income taxes ........................................
Net income attributable to Makita Corporation...........

193,500
31,00031,20020,800

%
4.1
20.5
15.5
8.9

385,000
59,50059,80039,800

%
0.5
8.4
5.0
3.5

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

153.24293.21

4. Others(1) Changes in important subsidiaries for the fiscal year (Changes in specified subsidiaries accompanied by changes inscope of consolidation): Not applicable(2) Changes in accounting policies:
1. Changes due to revisions to accounting standards: Yes
2. Changes due to other reasons: Yes(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, 2014:
As of March 31, 2013:
As of March 31, 2014:
As of March 31, 2013:
For the year ended March 31,2014
For the year ended March 31,2013

English Translation of "KESSAN TANSHIN" originally issued in Japanese

140,008,760
140,008,760
4,271,134
4,262,833
135,740,827
135,748,088

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, 2015” on page 5. The financial forecasts 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 2015 for a report on earnings for the year ending March 31, 2015.
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 June2015.
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, 2014
Looking at the global economic situation for the year ended March 31, 2014, the Western European economy,
which had been weak after the sovereign debt crisis, gradually recovered, while the Russian economy, which is
influenced by the movement of crude oil prices, slowed down. The U.S. economy continued recovering supported
by strong housing demand on the whole, but showed influence of a setback due to a cold snap toward the beginningof 2014. In Asia, the economy relatively remained steady along with underlying strength of the Chinese economy. In
Japan, the economy gained momentum, since new housing starts remained at a high level because of last-minutedemand ahead of the scheduled consumption tax rate hike.
Under these circumstances, on the development side, we marketed many new products, including high-capacity
lithium-ion battery products and power tools with a brushless motor featuring compact design and high power, toexpand our product lineups. On the production side, to establish a production system that can flexibly cope withchanges in demand, we enhanced functions of our plants, mainly in China and Romania. We also improved ourquality control system to maintain high-quality brand. On the sales side, we ran a TV commercial for a cordlessbrush cutter in July 2013 in Japan, spreading brand image not only in the field of electric power tools but also in thefield of outdoor power equipment (OPE*). Overseas, our local subsidiary in Malaysia began full-scale sales
activities and we newly established a branch both in Panama and Belem, a northern part of Brazil. Through such
steps, we tried harder to maintain and improve our sales and after-sales services near the customers.
In addition, we signed a business collaboration and capital alliance agreement with Sharp Corporation on
September 18, to expand our product lineups by using the advanced technologies including sensors, etc. possessedby Sharp in our product development.
Our consolidated net sales for this year increased by 23.8% to 383,207 million yen compared to the previous year,
marking the fourth consecutive year increase and an all-time high. Operating income increased by 21.0% to 54,914
million yen (operating income ratio: 14.3%) from the previous year, thanks to robust sales, although a temporary
cost was incurred due to the shutdown of Numazu office. Meanwhile, because we recorded non-operating income of
2,060 million yen due to gains on securities and other factors (non-operating income of 325 million yen for theprevious year), income before income taxes and net income attributable to Makita Corporation increased from theprevious year by 24.7% to 56,974 million yen (income before income taxes ratio: 14.9%) and by 23.7% to 38,453
million yen (net income attributable to Makita Corporation ratio: 10.0%), respectively.
Net sales results by region were as follows:
Net sales in Japan increased by 16.7% to 66,019 million yen compared to the previous year. This was because of
the continuing favorable sales supported by expanded product lineup of lithium-ion battery products, mainly impact
drivers, and the rise in housing demand ahead of the consumption tax hike.
Net sales in Europe increased by 32.3% to 165,357 million yen. This was because the yen drastically depreciatedagainst the euro as compared to the previous year and sales remained solid in main Western European markets.
Net sales in North America increased by 20.3% to 49,891 million yen. This was because the yen dropped sharply
against the US dollar compared to the previous year although sales temporarily declined due to a cold snap.
Net sales in Asia increased by 20.3% to 35,004 million yen. This was because sales in China recovered, althoughdemand in Southeast Asian countries was mixed.
Sales situation in the other regions are as follows: Net sales in Central and South America kept solid, increased
to 28,069 million yen, up 22.5% compared to the previous year, despite sluggish economy, while net sales in
Oceania grew to 20,805 million yen, up 10.4% compared to the previous year. Though local sales stagnated due topolitical uncertainty, net sales in the Middle East and Africa grew by 15.1% to 18,062 million yen because of a sharp
drop in the yen against local currencies as compared to the previous year.
*OPE stands for “Outdoor Power Equipment,” which is used for outdoor work such gardening, agriculture and forestry.

English Translation of "KESSAN TANSHIN" originally issued in Japanese4(2) Outlook for the year ending March 31, 2015
In developed countries, competition among companies is expected to intensify further because recovery of
demand will remain moderate. In emerging countries including Asia, where economy is expected to expand over the
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:・ In Japan, demand is forecast to decline due to a reaction to a sharp rise in last-minute demand ahead of theconsumption tax hike in April 2014;
・ In Europe and North America, competition is expected to intensify further, though demand for power tools
is likely to increase due to gradual economic recovery; 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, 2015.
Consolidated Financial Performance Forecast for the Year Ending March 31, 2015
Yen (millions)
For the year ending
For the six months ending
March 31, 2015
September 30, 2014
Net sales...................................................................
193,500
385,000
Operating income.....................................................
31,00059,500
Income before income taxes ....................................
31,20059,800Net income attributable to Makita Corporation .......
20,80039,800[Preconditions]
The above forecast is based on the assumption of exchange rates of 100 yen to the U.S. dollar and 135 yen to theeuro.
[Reference]
The actual exchange rate for the year ended March 31, 2014 was 100.2 yen to the U.S. dollar and 134.2 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
The amounts, after converting to Japanese yen, on balance sheets increased because the yen depreciated against
major currencies compared with the level at the end of March 31, 2013.
Total assets as of the end of the year increased by 78,147 million yen to 519,121 million yen compared to theprevious year. The increase was mainly due to an increase in “Cash and cash equivalents” and “Inventories.”
Total liabilities as of the end of the year increased by 15,035 million yen to 79,677 million yen compared to theprevious year. This increase was mainly due to the increase in “Accrued expenses” and “Income taxes payable.”
Total equity as of the end of the year increased by 63,112 million yen to 439,444 million yen compared to theprevious year. This increase was mainly attributable to the increase in “Retained earnings” and due to a change in
foreign currency translation adjustment.
(2) Analysis on cash flows and financial ratios
Total cash and cash equivalents at the end of the year amounted to 81,732 million yen, increased by 19,449
million yen compared to the end of the previous year.
(Net Cash Provided by Operating Activities)
Net cash provided by operating activities amounted to 41,686 million yen, up 3,322 million yen over theprevious year (38,364 million yen for the previous year).
(Net Cash Used in Investing Activities)
Net cash used in investing activities amounted to 20,084 million yen, up 4,670 million yen over the previous
year (15,414 million yen for the previous year) because we purchased investment securities and conducted capital
expenditures.
(Net Cash Used in Financing Activities)
Net cash used in financing activities amounted to 7,365 million yen, down by 3,285 million yen over theprevious year (10,650 million yen for the previous year) because we increased short term borrowings from theprevious 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) ..........................

2010
12.4%
85.0%
121.3%

As of (year ended) March 31,
2011
2012
2013
15.4%
16.4%
14.7%
82.5%
83.8%
84.7%
143.1%
117.6%
131.6%

2014
14.3%
84.0%
148.3%

0.0
984.9

0.0
400.3

0.1
213.8

0.3
43.5

0.0
219.2

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 2014 and 2015
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, 2014
(Result and Forecast)

For the year ending
March 31, 2015
(Forecast)

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

18.00 yen

18.00 yen

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

73.00 yen (Note1)(Note2)(Note2)
Total ..........................................................................
91.00 yen (Note1)
Notes:
1. A temporary cost was recorded as a result of the shutdown of Numazu office as of the year ended March
2014. When calculating the amount of dividends, the amount of after-tax impact of approximately 23
hundred million yen was added as a special circumstance to consolidated net income attributable to Makita
Corporation.

2. The Board of Directors plans to meet in April 2015 for a report on earnings for the year ending March 31,
2015. 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 2015. 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 50 consolidated subsidiaries.
Group Structure of Makita is outlined as follows;

Outside Customers
Overseas sales and manufacturing subsidiaries: 3

Overseas sales subsidiaries: 39

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: 25

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.

English Translation of "KESSAN TANSHIN" originally issued in Japanese

94. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Consolidated Balance Sheets
Yen (millions)
As of March 31, 2013
As of March 31, 2014
Composition ratio

Composition ratio

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

62,283

81,732Time deposits ....................................................................

13,262

15,673

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

38,06041,048Notes .............................................................................

1,398

1,402

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

53,58364,176Less- Allowance for doubtful receivables .....................

(899)(1,001)Inventories ........................................................................

138,953

156,111

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

5,533

7,231

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

11,102

13,665

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

323,275

Trade receivables-

73.3%

380,037

73.2%

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

22,71022,793

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

84,482

91,184

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

80,48486,594

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

3,349

3,174

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

191,025

203,745

Less- Accumulated depreciation and amortization ...........

(104,740)(112,143)

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

86,285

19.6%

91,602

17.6%

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

18,46130,413

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

721

721

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

4,549

4,692

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

961

623

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

6,722

11,033

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

31,414

7.1%

47,482

9.2%

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

440,974

100.0%

519,121100.0%English Translation of "KESSAN TANSHIN" originally issued in Japanese

10Yen (millions)
As of March 31, 2013
As of March 31, 2014
Composition ratio

Composition ratio

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

1,695

4,147

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

21,91021,406

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

5,556

6,647

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

7,148

10,566

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

8,295

9,083

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

5,221

8,210

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

129

1,029

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

6,371

8,199

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

56,325

12.8%

69,287

13.3%

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

8

16

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

3,513

3,689

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

3,136

5,332

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

1,660

1,353

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

8,317

1.9%

10,3902.0%

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

64,642

14.7%

79,67715.3%

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

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

45,42145,421

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

5,669

5,669

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

338,239

366,919

Accumulated other comprehensive income (loss)............

(28,064)

5,693

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

(11,527)(11,573)

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

373,54384.7%

435,934

84.0%

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

2,789

0.6%

3,510

0.7%

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

376,332

85.3%

439,444

84.7%

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

440,974

100.0%

519,121100.0%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, 2014
March 31, 2013
Composition ratio

Composition ratio

309,630 100.0%

383,207 100.0%

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

194,85962.9%

244,053

63.7%

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

114,77137.1%

139,154

36.3%

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

69,40522.4%

84,24022.0%

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

45,366

14.7%

54,914

14.3%

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

OTHER INCOME:
Interest and dividend income ...........................................................

1,732

2,326

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

(180)

(202)

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

(1,324)(1,700)Realized gains on securities, net ....................................................

97

1,636

Total other income, net .................................................................

325

0.1%

2,060

0.6%

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

45,691

14.8%

56,974

14.9%

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

13,206

18,749Deferred ...........................................................................................

1,301

(518)

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

14,507

4.7%

18,231

4.8%

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

31,184

10.1%

38,743

10.1%

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

108

0.1%

290

0.1%

NET INCOME ATTRIBUTABLE TO MAKITA CORPORATION ...

31,07610.0%

38,453

10.0%

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, 2014
March 31, 2013
31,18438,743Foreign currency translation adjustment ..................................

27,74030,204

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

2,699

2,687

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

821

1,322

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

31,26034,213COMPREHENSIVE INCOME .................................................

62,444

72,956Less-Comprehensive income attributable to thenon-controlling interest ...........................................................

366

746

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

62,07872,210NET 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, 2013

For the year ended
March 31, 2014

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

31,18438,743

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

7,542

8,622

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

1,301

(518)

Realized gains on available-for-sale securities, net .......................
Losses (gains) on disposal or sales of property, plant andequipment, net ...............................................................................

(97)(1,636)

CASH FLOWS FROM OPERATING ACTIVITIES:

59

(297)

45

1,239

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

(551)(6,092)Inventories ..................................................................................

3,238

152

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

(1,097)

1,441

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

(1,857)907

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

(1,100)(1,323)

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

(303)

448

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

38,364

41,686

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

(11,481)(11,417)

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

(11,358)(19,650)

Purchases of held-to-maturity securities...............................................

(1,216)-

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

2,249

7,730

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

156

200

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

3,900

3,800

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

759

1,259

Investment in time deposits ..................................................................

(21,828)(16,549)

Withdrawal of time deposits.................................................................

23,785

15,123

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

(380)

(580)

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

(15,414)(20,084)

CASH FLOWS FROM FINANCING ACTIVITIES:
Additions to borrowings with original maturities of more than threemonths ..................................................................................................
Payments on borrowings with original maturities of more than threemonths ..................................................................................................

2,272

4,002

(2,919)(1,611)

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

(15)

(46)

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

(9,774)(9,773)

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

(214)

63

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

(10,650)(7,365)

5,171

5,212

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

17,471

19,449CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR........

44,81262,283

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

62,283

81,732

Impairment of goodwill and long-lived assets...............................
Changes in assets and liabilities-

CASH FLOWS FROM INVESTING ACTIVITIES:English 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: 50
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. The Corporation and its consolidated subsidiaries have adopted
the straight-line method over the estimated useful 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.

English Translation of "KESSAN TANSHIN" originally issued in Japanese15

(3) Changes in accounting principles, procedures and presentations:[Depreciation Method Change]
On April 1, 2013, the depreciation method used by the Corporation and some of its consolidated subsidiaries tocompute the depreciation of property, plant and equipment was changed from the declining-balance method to thestraight-line method.
This change has its basis in the following: through Makita’s efforts to globalize its production, it has establisheda system for mass production at its overseas manufacturing subsidiaries. As a result, we can now regard our plants
in Japan as production centers of mainly high-value-added products that are consistently in demand and so we can
expect the generally stable consumption of the economic benefits of our property, plant and equipment. In view ofthese developments, we decided that the straight-line method is a more realistic and rational way of cost allocation.
Estimated useful lives have also been reevaluated and changed according to the actual status of use.
These changes have caused a decrease of 239 million yen in depreciation cost during the period, and respective
increases of 81 million yen and 0.59 yen in net income and in earning per share net income attributable to Makita
Corporation common shareholders.
[Reporting of Amounts Reclassified Out of Accumulated Other Comprehensive Income]
In February 2013, FASB issued ASU 2013-02 which requires entities to provide information about the amounts
reclassified out of accumulated other comprehensive income by component, and to present, either on the face ofthe statement where net income is presented or in the notes, significant amounts reclassified out of accumulated
other comprehensive income by the respective line items of net income. Makita adopts this amended guidancefrom the quarter beginning April 1, 2013. This adoption has no impact on Makita’s consolidated results ofoperations, financial condition and cash flows.

English Translation of "KESSAN TANSHIN" originally issued in Japanese16

6. Notes to Consolidated Financial Statements
Condensed Operating Segment Information
Yen (millions)
For the year ended March 31, 2013
North
Asia
Other
Total
America

Eliminations

Consolidated

309,630
165,808(165,808)

309,630-

51,204475,438(165,808)

309,630

110,158

46,150427,346(163,082)

264,264

14,424

5,054

48,092(2,726)45,366

Eliminations

Consolidated

Japan

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

77,19447,835

126,380
3,892

41,885
2,466

13,104111,478

51,067
137

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

125,029

130,272

44,351

124,582

Operating expenses........

109,883

118,466

42,689Operating income ........

15,146

11,806

1,662

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

Yen (millions)
For the year ended March 31, 2014
North
Asia
Other
Total
AmericaJapan

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

88,60556,847

166,768
4,684

50,7303,373

17,860156,615

59,244103

383,207
221,622(221,622)

383,207-

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

145,452

171,452

54,103

174,475

59,347604,829(221,622)

383,207

Operating expenses........

126,662

156,036

51,718

152,607

55,930542,953(214,660)

328,293

Operating income ........

18,79015,416

2,385

21,8683,417

61,876(6,962)

54,914

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

Net sales by product categories
Yen (millions)
For the year ended
For the year ended
March 31, 2013
March 31, 2014
Composition ratio

Composition ratio

Increase(Decrease)(%)

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

265,205
44,42585.7
14.3

326,515
56,692

85.2
14.8

23.1
27.6

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

309,630100.0

383,207

100.0

23.8

English Translation of "KESSAN TANSHIN" originally issued in Japanese17

Information per share
Yen

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

As ofMarch 31, 2013

As ofMarch 31, 2014

2,751.78

3,211.59
Yen

For the year ended
March 31, 2013
Earning per share (Basic)
Net income attributable to
Makita Corporation common shareholders ...............
Note:

228.92For the year ended
March 31, 2014
283.28Net 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, 2014: 135,740,827
For the year ended March 31, 2013: 135,748,088

English Translation of "KESSAN TANSHIN" originally issued in Japanese18Short-term investments and Investments
Yen (millions)

As of March 31, 2013
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

726
5,655
24,927Grossunrealized
holding
gains
32
1,368
-

Gross
unrealized
holding
losses-587

951

31,895
3,513

Fair value

Carrying
amount758
7,023
24,927758
7,023
24,927

-

1,538

1,538

2,351
3

-

34,246
3,516

34,246
3,513

100

-

-

100

100

201

-

-

201

201

3,814
35,709

3
2,354

-

3,817
38,063

3,814
38,060

6,910

7,232

-

14,142

14,142

6,910
3,432

7,232
23

-

14,142
3,455

14,142
3,432

100

1

-

101

100

400

3

-

403

400

3,932
10,842

27
7,259

-

3,959
18,101

3,932
18,074

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 Japanese

19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:

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

583

11

-

594

594

3,489
32,022

1,006
-

-

4,495
32,022

4,495
32,022

398

531

-

929

929

36,492

1,548-

38,04038,040

2,508

3

-

2,511

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

16,93012,195-29,12529,125

901

15

-

916

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).

Significant Subsequent Events: None

English Translation of "KESSAN TANSHIN" originally issued in Japanese

20

SUPPORT DOCUMENTATION (CONSOLIDATED)
1. Consolidated Financial Results and Forecast
For the year ended
March 31, 2012

Yen (millions)
For the year ended
March 31, 2013(%)

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, 2014

(%)

(%)

295,711
53,175242,536
48,516
46,963

8.5
15.4
7.0
15.8
9.9

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

32,4978.7

31,076(4.4)

38,45323.7

236.7872.00
30.4
12,563228.92
69.00
30.1
12,680283.2891.00
32.1
12,804

Yen (millions)
For the six months
For the year ending
ending September
March 31, 201530, 2014(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)..........................................................................

(%)

(%)

193,500
4.1
28,000 (5.2)
165,500 5.9
31,000 20.5
31,200 15.5
20,800 8.9

385,000 0.5
56,000 (15.2)
329,000 3.7
59,500 8.4
59,800 5.0
39,800 3.5

153.2418.00

293.21(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 Japanese21

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, 2012

Yen (millions)
For the year ended
March 31, 2013

For the year ended
March 31, 2014

(%)

(%)

(%)

53,175
123,251
37,47526,01355,797
23,37017,78014,647295,711

15.4
6.3
1.0
12.7
10.7
15.2
15.6
(0.5)
8.5

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

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 17. 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, 2015

For the year ended
March 31, 2012

For the year ended
March 31, 2013

For the year ended
March 31, 2014

79.06
109.0082.91
106.78100.17134.21100
135

For the year ended
March 31, 2012

For the year ended
March 31, 2013

For the year ended
March 31, 2014

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

(Forecast)

4. Production Ratio (unit basis)

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

12.2%
87.8%

11.6%
88.4%

11.2%
88.8%

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, 2015

For the year ended
March 31, 2012

For the year ended
March 31, 2013

For the year ended
March 31, 2014

13,481

11,481

11,417

15,000

7,237
7,603

7,542
8,396

8,622
8,720

9,200
9,800

English Translation of "KESSAN TANSHIN" originally issued in Japanese(Forecast)22