Makita Corporation
Consolidated Financial Results
for the year ended March 31, 2016
(U.S. GAAP Financial Information)(English translation of "KESSAN TANSHIN"
originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS
FOR THE YEAR ENDED MARCH 31, 2016 (Unaudited)
April 27, 2016

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, 2016 (From April 1, 2015 to March 31, 2016)(1) CONSOLIDATED OPERATING RESULTS
Yen (millions)
For the year ended
For the year ended
March 31, 2015
March 31, 2016%%
Net sales ......................................................................
414,718
8.2
423,623
2.1
Operating income ........................................................
71,90530.9
64,676(10.1)
Income before income taxes ........................................
68,39420.0
61,492(10.1)Net income attributable to Makita Corporation ...........
45,30717.8
41,615(8.1)
Comprehensive income ...............................................
62,655(14.1)
9,955(84.1)
Yen
Earning per share
Net income attributable to
Makita Corporation common shareholders(Basic) .....................................................................
(Diluted) ..................................................................
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 ........................

333.79-306.59306.58

9.8%
12.5%
17.3%

8.6%
10.9%
15.3%

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 to total assets (%) ...............

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

As ofMarch 31, 2016
558,024
483,370
479,752

84.5%

86.0%
Yen

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

3,580.66

3,534.52(3) CONSOLIDATED CASH FLOWS
Yen (millions)
For the year ended
For the year ended
March 31, 2015
March 31, 2016
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

35,894(20,096)(12,017)
94,52934,188(6,573)(18,719)
99,91512. Dividend Information
Yen
For the year
ended March 31,
2015

For the year
ended March 31,
2016

For the year
ending March
31, 2017(Forecast)

18.00
100.00118.0018.00
83.00
101.0018.00(Note)(Note)Cash dividend per share:
Interim ....................................................................
Year-end ..................................................................
Total ........................................................................

Yen (millions)
Total cash dividend ......................................................
16,017
13,709Dividend payout ratio (%) ...........................................
35.4%
32.9%
Dividend to shareholders' equity ratio (%) ..................
3.5%
2.8%
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, 2017
(From April 1, 2016 to March 31, 2017)
Yen (millions)
For the year ending
For the six months ending
March 31, 2017
September 30, 2016
Net sales ......................................................................
Operating income ........................................................
Income before income taxes ........................................
Net income attributable to Makita Corporation...........

195,000
30,50030,50021,100%(10.2)(11.7)(1.1)(1.8)

400,000
60,00060,00041,500

%
(5.6)
(7.2)
(2.4)
(0.3)

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

155.45305.75

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, 2016:
As of March 31, 2015:
As of March 31, 2016:
As of March 31, 2015:
For the year ended March 31, 2016:
For the year ended March 31, 2015:

English Translation of "KESSAN TANSHIN" originally issued in Japanese

140,008,760
140,008,760
4,275,499
4,273,892
135,734,118
135,736,215

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, 2017” on page 5. The financial forecast given above is based on information as
available at the present time, and includes 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 2017 for a report on earnings for the year ending March 31, 2017.
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 June2017.
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, 2016
Looking at the global economic situation for the year ended March 31, 2016, the Western European economy
remained solid mainly in the major countries, while the Russian economy remained sluggish due to such factors as
the impact of lower oil prices and a weaker ruble. The US economy gradually expanded on the back of robust
consumer spending and housing investment. In Asia, the Chinese economy slowed down, causing the economies ofneighboring countries to stagnate. Meanwhile, there were signs that the recovery in the Japanese economy was
sputtering due to weak consumer spending, despite improvements in corporate results and the employment
environment.
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 strove to reduce costs while raising local content ratios. To improve product quality and enhance
productivity, we worked on introducing facilities that require less manpower in each factory worldwide. On the sales
side, while we continued to carry out intensive sales activities in Japan based on our network of 114 businesslocations nationwide, we strove to disseminate the Makita brand abroad by offering the most appropriate products
and services from our vast family of products to accommodate the different needs in various countries and regions,as well as maintaining and improving our customer-based sales and after-sales service through various efforts
including establishment of our new sales branches in Bolivia in October 2015, Latvia in January 2016 and Krasnodar,
Russia in March 2016.
Our consolidated net sales for this year increased by 2.1% to 423,623 million yen compared to the previous year
due to generally robust sales within and outside Japan, marking the sixth consecutive years of increasing sales, andan all-time high. Operating income decreased by 10.1% to 64,676 million yen (operating income ratio: 15.3%)
compared to the previous year, owing to deterioration in the cost-of-sales ratio due to the influence of exchange rate.
Income before income taxes and net income attributable to Makita Corporation decreased by 10.1% to 61,492
million yen (income before income taxes ratio: 14.5%) and by 8.1% to 41,615 million yen (net income attributable
to Makita Corporation ratio: 9.8%) compared to the previous year.
Net sales results by region were as follows:
Net sales in Japan increased by 1.0% to 68,445 million yen compared to the previous year. This was due tofactors such as a further expansion of the lithium-ion battery product line and aggressive launches of new products.
Net sales in Europe decreased by 0.7% to 173,987 million yen. Despite steady sales in most countries, this was
because of decreased sales in Russia and the yen’s appreciation against the euro.
Net sales in North America increased by 18.5% to 67,759 million yen. This was due to robust demand for electric
power tools as the economy expanded in the US, as well as the yen’s depreciation against the US dollar compared tothe previous year.
Net sales in Asia increased by 4.5% to 41,443 million yen. This was due to robust sales in countries such as
Vietnam and the yen’s depreciation against local currencies, despite sluggish demand in some countries due to theslowdown of the Chinese economy.
The sales situations in other regions are as follows. Net sales in Central and South America decreased by 13.7%
to 26,149 million yen compared to the previous year due to sluggish sales in Brazil and the yen’s appreciation
against local currencies, despite increased demand in Mexico and other regions influenced by the U.S. economy.
Net sales in Oceania increased by 3.8% to 24,653 million yen on the back of robust sales. Net sales in the Middle
East and Africa increased by 1.5% to 21,187 million yen due to the yen’s depreciation against local currencies,
despite the impact of political unrest and lower oil prices, etc.

English Translation of "KESSAN TANSHIN" originally issued in Japanese4(2) Outlook for the year ending March 31, 2017
In the future, demand is unlikely to grow sharply in advanced countries. Meanwhile, competition between
companies is expected to intensify. In addition, as to emerging countries, it does not seem probable that demand in
China, Russia and Brazil will turn significantly positive. With foreign exchange rate trends and international
political situations being unpredictable, Makita is expected to continue facing a challenging business environment.
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. and Western Europe, 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 and Brazilian 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, 2017.
Consolidated Financial Performance Forecast for the Year Ending March 31, 2017
Yen (millions)
For the year ending
For the six months ending
March 31, 2017
September 30, 2016
Net sales .....................................................................
195,000
400,000
Operating income .......................................................
30,50060,000
Income before income taxes .......................................
30,50060,000Net income attributable to Makita Corporation ..........
21,10041,500[Preconditions]
The above forecast is based on the assumption of exchange rates of 110 yen to the U.S. dollar and 120 yen to the euro.
[Reference]
The actual exchange rate for the year ended March 31, 2016 was 120.2 yen to the U.S. dollar and 132.6 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 decreased by 17,304 million yen to 558,024 million yen compared to theprevious year. The decrease was mainly due to the decrease in “Short-term investments” and “Investments”.
Total liabilities as of the end of the year decreased by 11,089 million yen to 74,654 million yen compared to theprevious year. This decrease was mainly due to the decrease in “Trade notes and accounts payable” and “Long-term
Deferred income taxes.”
Total equity as of the end of the year decreased by 6,215 million yen to 483,370 million yen compared to theprevious year. This decrease was 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 99,915 million yen, increased by 5,386
million yen compared to the end of the previous year.
(Net Cash Provided by Operating Activities)
Net cash provided by operating activities amounted to 34,188 million yen, down 1,706 million yen over theprevious year (35,894 million yen for the previous year).
(Net Cash Used in Investing Activities)
Net cash used in investing activities amounted to 6,573 million yen, down 13,523 million yen over the previous
year (20,096 million yen for the previous year).
(Net Cash Used in Financing Activities)
Net cash used in financing activities amounted to 18,719 million yen, up 6,702 million yen over the previous
year (12,017 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) ..........................

2012
16.4%
83.8%
117.6%
0.3
43.5

As of (year ended) March 31,
2013
2014
2015
14.7%
14.3%
17.3%
84.7%
84.0%
84.5%
131.6%
148.3%
147.2%

2016
15.3%
86.0%
169.8%

0.0
219.2

0.1
294.7

0.1
213.8

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 2016 and 2017
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, 2016
(Result and Forecast)

For the year ending
March 31, 2017
(Forecast)

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

18.00 yen

18.00 yen

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

83.00 yen (Note 1)(Note 2)

(Note 2)
Total ..........................................................................
101.00 yen (Note 1)
Notes:
1. For the fiscal year ended March 31, 2016, a loss on the valuation of stocks of Sharp Corporation held wasrecorded. When calculating the amount of dividends, the amount of after-tax impact of approximately 3.8
billion 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 2017 for a report on earnings for the year ending March 31,
2017. 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 2017. 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: 2

Overseas sales subsidiaries: 40

Makita U.S.A. Inc.

Domestic

Makita Canada Inc.

Makita (China) Co., Ltd.

Makita (U.K.) Ltd.

Makita do Brasil
Ferramentas Eletricas
Ltda.

Makita France SAS

MakitaCorporation

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

Other subsidiary: 1
Overseas manufacturingsubsidiaries: 6

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, S.A. (Spain)

Makita EU S.R.L.
(Romania)

Makita Oy (Finland)lk

Makita Engineering
Germany GmbH

Makita (Australia) Pty. Ltd.
+

Makita (Kunshan) Co.,Ltd.

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

Makita Manufacturing(Thailand) Co., Ltd.
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, 2015
As of March 31, 2016
Composition ratio

Composition ratio

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

94,52999,915Time deposits ....................................................................

15,283

15,545

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

56,07648,263

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

1,315

1,079

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

64,64264,309Less- Allowance for doubtful receivables .....................

(998)(1,173)Inventories ........................................................................

175,186

178,791

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

6,296

5,454

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

16,782

15,390Total current assets ........................................................

429,111

Trade receivables-

74.6%

427,573

76.6%

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

23,104

22,436

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

96,202

94,704

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

91,35391,365Construction in progress ...................................................

3,237

2,662

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

213,896

211,167

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

(118,084)(118,344)

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

95,812

16.7%

92,823

16.6%

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

31,39521,872

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

721

721

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

4,563

4,107

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

629

610

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

13,097

10,318

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

50,405

8.7%

37,628

6.8%

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

575,328100.0%

558,024100.0%English Translation of "KESSAN TANSHIN" originally issued in Japanese

10Yen (millions)
As of March 31, 2015
As of March 31, 2016
Composition ratio

Composition ratio

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

4,647

2,195

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

25,124

20,620

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

6,140

6,521

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

10,594

9,350

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

9,568

9,143

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

5,353

4,440

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

1,529

3,084

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

7,911

9,545

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

70,86612.3%

64,898

11.6%

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

383

30

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

3,701

3,271

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

9,521

4,974

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

1,272

1,481

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

14,877

2.6%

9,756

1.8%

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

85,74314.9%

74,654

13.4%

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

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

45,42145,456

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

5,669

5,669

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

399,874

425,473

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

22,842(9,049)Treasury stock, at cost ......................................................

(11,590)(11,602)

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

486,02184.5%

479,752

86.0%

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

3,564

0.6%

3,618

0.6%

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

489,58585.1%

483,370

86.6%

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

575,328100.0%

558,024100.0%English Translation of "KESSAN TANSHIN" originally issued in Japanese112. Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Yen (millions)
For the year ended
For the year ended
March 31, 2016
March 31, 2015
Composition ratio

Composition ratio

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

414,718

100.0%

423,623100.0%

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

257,58262.1%

270,12163.8%

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

157,13637.9%

153,502

36.2%

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

85,231

20.6%

88,826

20.9%

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

71,90517.3%

64,676

15.3%

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

2,639

2,468

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

(113)

(115)

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

(6,480)(1,552)

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

443

1,418

Valuation losses on securities ..........................................................

-(5,403)

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

(3,511)(0.8%)(3,184)(0.8%)

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

68,394

16.5%

61,492

14.5%

Income tax expense:
Current.............................................................................................

18,88918,707

Deferred...........................................................................................

3,824

812

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

22,713

5.5%

19,5194.6%

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

45,681

11.0%

41,9739.9%

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

374

0.1%

358

0.1%

NET INCOME ATTRIBUTABLE TO MAKITA CORPORATION ...

45,307

10.9%

41,615

9.8%

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, 2016
March 31, 2015
45,681

41,973Foreign currency translation adjustment ........................................

14,660(26,304)

Unrealized holding gains (expense)on available-for-sale securities ...................................................

1,267(3,036)

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

1,047(2,678)

Total other comprehensive income (loss) .................................

16,974(32,018)COMPREHENSIVE INCOME .......................................................

62,655

9,955

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

199

231

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

62,456

9,724

NET INCOME ..................................................................................
OTHER COMPREHENSIVE INCOME (LOSS):

English Translation of "KESSAN TANSHIN" originally issued in Japanese13

3. Consolidated Statements of Changes in Equity
Yen (millions)
For the year ended March 31, 2015
Makita Corporation shareholders’ equity

Beginningbalance .......................

Commonstock

Additional
paid-in
capitalLegalreserve

Retainedearnings

Accumulated
othercomprehensive
income (loss)

Treasurystock

Total Makita
Corporation
shareholders’equityNoncontrollinginterest

23,80545,421

5,669

366,919

5,693(11,573)435,934

3,510

(17)

(17)

Purchases
and disposalof treasury
stock, net ....................
Cash dividends ..........

Total
equity439,444(17)(12,352)(12,352)(145)(12,497)45,30745,307374

45,681

17,149(175)

16,974

486,0213,564

489,585

Comprehensive
income (loss) .............
Net income .............
Other
comprehensive
income (loss) ..........
Ending balance ..........

17,14923,80545,421

5,669

399,874

22,842(11,590)

Yen (millions)
For the year ended March 31, 2016
Makita Corporation shareholders’ equity

Beginningbalance .......................

Commonstock

Additional
paid-in
capitalLegalreserve

Retainedearnings

Accumulated
othercomprehensive
income (loss)

Treasurystock

Total Makita
Corporation
shareholders’equityNoncontrollinginterest

23,80545,421

5,669

399,874

22,842(11,590)

486,0213,564

489,585

Purchases
and disposalof treasury
stock, net ....................

(12)

Cash dividends ..........

(12)

Total
equity(12)(16,016)(16,016)(177)(16,193)

41,61541,615358

41,973(31,891)(127)(32,018)

Comprehensive
income (loss) .............
Net income .............
Other
comprehensive
income (loss) ..........

(31,891)
35

Other increase ............
Ending balance ..........

23,80545,45635
5,669

425,473(9,049)English Translation of "KESSAN TANSHIN" originally issued in Japanese(11,602)479,75235
3,618

483,370

14

4. Consolidated Statements of Cash Flows
Yen (millions)
For the year ended
March 31, 2015

For the year ended
March 31, 2016

CASH FLOWS FROM OPERATING ACTIVITIES:Net income ......................................................................................................
Adjustments to reconcile net income to net cash
provided by operating activities-

45,681

41,973

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

8,619

9,284

Deferred income tax expense ...................................................................

3,824

812

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

(443)(1,418)Valuation losses on securities ..................................................................

-

5,403

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

(304)

(39)

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

310-

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

(1,148)(3,152)Inventories .............................................................................................

(18,419)(15,588)

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

1,903(2,821)

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

(4,828)177

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

(352)(1,253)

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

1,051

810

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

35,89434,188

Capital expenditures ........................................................................................

(12,124)(11,769)

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

(15,682)(9,997)

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

919

15,268Proceeds from maturities of available-for-sale securities ................................

100

500

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

3,000

500

Changes in assets and liabilities-

CASH FLOWS FROM INVESTING ACTIVITIES:

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

1,536

1,421

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

(19,885)(36,169)

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

22,43434,251Other, net .........................................................................................................

(394)

(578)

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

(20,096)(6,573)

1,042

867

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

3,419

-

(4,443)(3,556)

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

446-

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

(17)

(12)

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

(12,352)(16,016)

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

(112)

(2)

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

(12,017)(18,719)

9,016(3,510)NET CHANGE IN CASH AND CASH EQUIVALENTS .............................

12,797

5,386

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

81,732

94,529CASH AND CASH EQUIVALENTS, END OF YEAR ................................

94,52999,915English Translation of "KESSAN TANSHIN" originally issued in Japanese15

5. Notes to Consolidated Financial Statements
Notes on the assumptions for a going concern: None
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.
Changes in accounting principles, procedures and presentations: None

English Translation of "KESSAN TANSHIN" originally issued in Japanese16

Condensed Operating Segment Information
Yen (millions)
For the year ended March 31, 2015
North
Asia
Other area
Total
America

Eliminations

Consolidated

414,718
268,780(268,780)

414,718-

66,830683,498(268,780)

414,718

175,585

63,030607,370(264,557)

342,813

27,662

3,800

76,128(4,223)

71,905

Eliminations

Consolidated

Japan

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

91,25878,167

175,680
5,800

58,962
3,554

22,145
181,10266,673
157

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

169,425

181,480

62,516203,247

Operating expenses .......

146,091

161,741

60,923Operating income ..........

23,334

19,7391,593

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

Yen (millions)
For the year ended March 31, 2016
North
Asia
Other area
Total
AmericaJapan

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

92,36676,976

174,126
4,698

69,793
3,952

23,316
190,630

64,022
196

423,623
276,452(276,452)

423,623-

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

169,342

178,824

73,745

213,946

64,218700,075(276,452)

423,623

Operating expenses .......

150,527

167,571

72,716

187,145

61,878639,837(280,890)

358,947

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

18,815

11,253

1,029

26,801

2,340

60,2384,438

64,676

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

Net sales by product categories
Yen (millions)
For the year ended
For the year ended
March 31, 2015
March 31, 2016
Composition ratio

Composition ratio

Increase(Decrease)(%)

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

349,832
64,88684.4
15.6

356,165
67,458

84.1
15.9

1.8
4.0

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

414,718100.0

423,623

100.0

2.1

English Translation of "KESSAN TANSHIN" originally issued in Japanese17

Information per share
Yen

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

As ofMarch 31, 2015

As ofMarch 31, 2016

3,580.66

3,534.52
Yen

For the year ended
March 31, 2015
Earning per share
Net income attributable to
Makita Corporation common shareholders(Basic) .......................................................................
(Diluted) ....................................................................
Note:

333.79-For the year ended
March 31, 2016306.59306.58Net 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, 2016: 135,734,118
For the year ended March 31, 2015: 135,736,215
There were no potentially dilutive shares outstanding for the year ended March 31, 2015.

English Translation of "KESSAN TANSHIN" originally issued in Japanese18Short-term investments and Investments
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
Total
Marketable equity
securities
Total
Corporate 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).

Yen (millions)

As of March 31, 2016
Short-term
investments:

Available-for-salesecurities:

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

Investments in trusts
MMF and FFF
Marketable equity
securities
Total
Corporate debt
securities
Total
Marketable equity
securities
Total
Corporate debt
securities
Total

Total

1,864
43,350Grossunrealized
holding
gains
392
-

Gross
unrealized
holding
losses
3
-

593

1,062

45,807

Fair value

Carrying
amount2,253
43,3502,253
43,350

-

1,655

1,655

1,454

3

47,25847,258

1,000

-

-

1,000

1,000

1,000
46,807

1,454

3

1,000
48,2581,000
48,258

11,333

9,757-

21,09021,09011,333

9,757-

21,09021,090

400

14

-

414

400

400
11,733

14
9,771

-

414
21,504400
21,490Cost

In addition to the above investments, Makita holds 387 million yen (short-term investment:5 million yen, investment:382 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, 2014

Yen (millions)
For the year ended
March 31, 2015(%)

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, 2016

(%)

(%)

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

423,623
68,445355,178
64,676
61,4922.1
1.0
2.4(10.1)(10.1)

38,45323.7

45,30717.8

41,615(8.1)

283.2891.00
32.1
12,804333.79118.0035.4
13,835306.59101.0032.9
14,784

Yen (millions)
For the six months
For the year ending
ending September
March 31, 201730, 2016(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)..........................................................................

195,000 (10.2)
33,000 1.4
162,000 (12.3)
30,500 (11.7)
30,500 (1.1)
21,100 (1.8)
155.4518.00(%)

400,000
70,000330,000
60,00060,00041,500

(5.6)
2.3
(7.1)
(7.2)
(2.4)
(0.3)

305.75(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, 2014

Yen (millions)
For the year ended
March 31, 2015

For the year ended
March 31, 2016

(%)

(%)

(%)

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

68,445
173,987
67,75941,443
71,98926,14924,653
21,187
423,623

1.0
(0.7)
18.5
4.5
(3.9)
(13.7)
3.8
1.5
2.1

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, 2017

For the year ended
March 31, 2014

For the year ended
March 31, 2015

For the year ended
March 31, 2016

100.17134.21109.76
138.69120.15132.60110
120

For the year ended
March 31, 2014

For the year ended
March 31, 2015

For the year ended
March 31, 2016

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

(Forecast)

4. Production Ratio (unit basis)

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

11.2%
88.8%

10.3%
89.7%

10.2%
89.8%

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, 2017

For the year ended
March 31, 2014

For the year ended
March 31, 2015

For the year ended
March 31, 2016

11,417

12,124

11,76917,000

8,622
8,720

8,619
9,117

9,284
9,593

9,600
9,600

English Translation of "KESSAN TANSHIN" originally issued in Japanese(Forecast)21