Makita Corporation
Consolidated Financial Results
for the year ended March 31, 2017
(U.S. GAAP Financial Information)(English translation of "KESSAN TANSHIN"
originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS
FOR THE YEAR ENDED MARCH 31, 2017 (Unaudited)
April 27, 2017

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, 2017 (From April 1, 2016 to March 31, 2017)(1) CONSOLIDATED OPERATING RESULTS
Yen (millions)
For the year ended
For the year ended
March 31, 2016
March 31, 2017%
Net sales ......................................................................
423,623
2.1
414,999(2.0)
Operating income ........................................................
64,676(10.1)
62,564(3.3)
Income before income taxes ........................................
61,492(10.1)
64,7385.3
Net income attributable to Makita Corporation ...........
41,615(8.1)
44,782
7.6
Comprehensive income ...............................................
9,955(84.1)
36,250264.1
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 ........................

153.30153.29164.96164.95

8.6%
10.9%
15.3%

9.1%
11.2%
15.1%

Note: The Company implemented a two-for-one common stock split, effective April 1, 2017. Net income attributable to Makita
Corporation common shareholders per share (basic) and net income attributable to Makita Corporation common shareholders
per share (diluted) were calculated on the assumption that the relevant stock split had been implemented at the beginning of
the previous consolidated fiscal year.

(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, 2016
558,024
483,370
479,752

As ofMarch 31, 2017597,249
505,811502,170

86.0%

84.1%
Yen

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

1,767.26

1,849.88

Note: The Company implemented a two-for-one common stock split, effective April 1, 2017. Makita Corporation shareholders’equity per share was calculated on the assumption that the relevant stock split had been implemented at the beginning of theprevious consolidated fiscal year.

English Translation of "KESSAN TANSHIN" originally issued in Japanese1(3) CONSOLIDATED CASH FLOWS
Yen (millions)
For the year ended
For the year ended
March 31, 2016
March 31, 201734,188(6,573)(18,719)
99,915

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 ........

63,351(5,015)(9,495)
142,181

2. Dividend Information
Yen

Cash dividend per share:
Interim ....................................................................
Year-end ..................................................................
Total ........................................................................

For the year
ended March 31,
2016

For the year
ended March 31,
2017

For the year
ending March
31, 2018(Forecast)

18.00
83.00
101.0018.00
82.00
100.0010.00(Note)(Note)Yen (millions)
Total cash dividend ......................................................
13,70913,573
Dividend payout ratio (%) ...........................................
32.9%
30.3%
Dividend to shareholders' equity ratio (%) ..................
2.8%
2.8%
Note:
1. The Company implemented a two-for-one common stock split, effective April 1, 2017. Dividends per share forboth the consolidated fiscal year ended March 31, 2016 and the consolidated fiscal year ended March 31, 2017 are
actual amounts paid prior to the relevant stock split.
2. While the Corporation has set forth under the Articles of Corporation of the Corporation that the record date forthe payment of dividend shall be the last day of a relevant period, at the present time, the projected amount ofdividends as of the said record date has not been determined yet. For further details, refer to “(5) Basic policy
regarding profit distribution and cash dividend” on page 7.
3. Consolidated Financial Performance Forecast for the year ending March 31, 2018
(From April 1, 2017 to March 31, 2018)
Yen (millions)
For the year ending
For the six months ending
March 31, 2018
September 30, 2017
Net sales ......................................................................
Operating income ........................................................
Income before income taxes ........................................
Net income attributable to Makita Corporation...........

207,000
30,50031,50021,900

%
3.5
(9.4)
(7.5)
(9.0)

418,000
60,00062,00043,000

%
0.7
(4.1)
(4.2)
(4.0)

Yen
Earning per share (Basic)
Net income attributable to
Makita Corporation common shareholders .................
80.67
158.40Note: The Company implemented a two-for-one common stock split, effective April 1, 2017. Net income
attributable to Makita Corporation common shareholders per share (basic) in the forecast of consolidated
financial performance is calculated based on the number of shares outstanding (common stock) after the
relevant stock split.

English Translation of "KESSAN TANSHIN" originally issued in Japanese2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, 2017:
As of March 31, 2016:
As of March 31, 2017:
As of March 31, 2016:
For the year ended March 31, 2017:
For the year ended March 31, 2016:

280,017,520
280,017,520
8,556,948
8,550,998
271,463,676
271,468,232

Note: The Company implemented a two-for-one common stock split, effective April 1, 2017. The number of shares
outstanding (common stock) was calculated on the assumption that the relevant stock split had been
implemented at the beginning of the previous consolidated fiscal year.

Makita’s earnings releases (KESSAN TANSHIN) are not subject to an audit.
Explanation regarding proper use of business forecasts, and other significant matters
Regarding the assumptions for the forecasts and other matters, refer to “(4) Outlook for the fiscal year ending
March 31, 2018” 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.

English Translation of "KESSAN TANSHIN" originally issued in Japanese31. OPERATING RESULTS
1. Overview of operating results(1) Overview of operating results for the fiscal year ended March 31, 2017
Looking at the global economic situation for the year ended March 31, 2017, the regional economy remainedrobust in Europe, supported by solid domestic demand, although there was uncertainty regarding the outlook for theWestern European economy in relation to Brexit (the British referendum on remaining in or leaving the E.U.). In the
U.S., the economy recovered, driven by the favorable employment and income situation. In Asia, Southeast Asian
countries and India saw their economies grow steadily, while the Chinese economy continued to slow down.
Meanwhile, the economy gradually recovered in Japan, although some sectors, such as personal consumption,
lacked strength.
Under these circumstances, on the development side, Makita expanded its product lineup, mainly lithium ion
battery products, such as high power models using high-capacity lithium ion batteries and small and light models
using 10.8-volt slide-on batteries. On the production side, overseas factories strove to reduce costs while raisinglocal 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 trying to expand sales channels using ourvast family of products, we endeavored to maintain and improve our customer-based sales and after-sales service
through various efforts including establishment of new sales and service bases overseas.
Our consolidated net sales for this year decreased by 2.0% to 414,999 million yen compared to the previous year,
due to appreciation of the yen compared with the previous year, although sales grew steadily at home and abroad,mainly in developed countries. Operating income decreased by 3.3% to 62,564 million yen (operating income ratio:
15.1%) because net sales declined due to the influence of the exchange rate, although the Company managed to keep
the operating income ratio almost unchanged. Meanwhile, income before income taxes increased by 5.3% to 64,738
million yen (income before income taxes ratio: 15.6%) and net income attributable to Makita Corporation
shareholders increased by 7.6% to 44,782 million yen (ratio of net income attributable to Makita Corporation
shareholders: 10.8%) because we had recorded valuation losses on securities in the previous year.
Net sales by region are as follows:
Net sales in Japan increased by 8.7% to 74,381 million yen compared to the previous year. This was because sales
mainly on new products remained solid.
Net sales in Europe decreased by 2.9% to 168,992 million yen. This was due to the appreciation of the yen against
the euro from a year earlier, although sales in general were steady in European countries.
Net sales in North America decreased by 2.4% to 66,148 million yen. This was due to the strengthening of the yen
against the U.S. dollar compared to the same period of the previous year, despite an increase in local sales aided by
the expanding U.S. economy.
Net sales in Asia decreased by 3.3% to 40,079 million yen. This was due to the appreciation of the yen against
local currencies compared to the previous year, although we saw local sales grow in Vietnam, Taiwan and India.
Sales situations in other regions are as follows. Net sales in Oceania increased by 1.8% to 25,093 million yen due to
steady sales, mainly of lithium-ion battery products. Due to the impact of the yen’s appreciation against local
currencies, net sales in Central and South America, where the Brazilian economy remained stagnant, decreased by
11.6% to 23,110 million yen; while those in the Middle East and Africa, where recession continued in oil-producing
countries, decreased by 18.8% to 17,196 million yen.
(2) Overview of financial situation for the fiscal year ended March 31, 2017
Total assets as of the end of the year increased by 39,225 million yen to 597,249 million yen compared to theprevious year. The increase was mainly due to the increase in “Cash and cash equivalents”.
Total liabilities increased by 16,784 million yen to 91,438 million yen compared to the previous year. This increase
was mainly due to the increase in “Short-term borrowings” and “Trade notes and accounts payable”.
Total equity increased by 22,441 million yen to 505,811 million yen compared to the previous year. This increase
was due to the increase in “Accumulated other comprehensive loss”.

English Translation of "KESSAN TANSHIN" originally issued in Japanese4(3) Overview of cash flow situation for the fiscal year ended March 31, 2017
Total cash and cash equivalents at the end of the year amounted to 142,181 million yen, increased by 42,266
million yen compared to the end of the previous year.
(Net Cash Provided by Operating Activities)
Net cash provided by operating activities amounted to 63,351 million yen, up 29,163 million yen over theprevious year (34,188 million yen for the previous year).
(Net Cash Used in Investing Activities)
Net cash used in investing activities amounted to 5,015 million yen, down 1,558 million yen over the previous
year (6,573 million yen for the previous year).
(Net Cash Used in Financing Activities)
Net cash used in financing activities amounted to 9,495 million yen, down 9,224 million yen over the previous
year (18,719 million yen used in fiscal year ended March 31, 2016), due to an increase in borrowings and a fall incash dividends paid.
(4) Outlook for the fiscal year ending March 31, 2018
In the future, political matters around the world remain very uncertain, trends of exchange rates and natural
resource prices remain unpredictable, Makita is expected to continue to face a challenging business environment.
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 among cordless products;
・ 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, 2018.
Consolidated Financial Performance Forecast for the Year Ending March 31, 2018
Yen (millions)
For the year ending
For the six months ending
March 31, 2018
September 30, 2017
Net sales .....................................................................
207,000
418,000
Operating income .......................................................
30,50060,000
Income before income taxes .......................................
31,50062,000Net income attributable to Makita Corporation ..........
21,90043,000[Preconditions]
The above forecast is based on the assumption of exchange rates of 105 yen to the U.S. dollar, 115 yen to the euro
and 16.1 yen to the renminbi.
[Reference]
The actual exchange rate for the year ended March 31, 2017 was 108.34 yen to the U.S. dollar, 118.74 yen to the euro
and 16.1 yen to the renminbi.
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(5) Basic policy regarding profit distribution and cash dividend for the fiscal 2017 and 2018
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 (Note 1). 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, 2017
(Result and Forecast)

For the year ending
March 31, 2018
(Forecast)

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

18.00 yen

10.00 yen

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

82.00 yen

(Note 2)

(Note 2)
Total ..........................................................................
100.00 yen
Notes:
1. The Company has revised the lower limit on annual cash dividend per share from 18.0 yen to 10.0 yen,reflecting a two-for-one common stock split, effective April 1, 2017.
2. The Board of Directors plans to meet in April 2018 for a report on earnings for the year ending March 31,
2018. 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 2018. 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.
2. Basic Rationale for Selection of Accounting Standards
Makita has adopted the U.S. accounting standards. Makita has paid attention to circumstance of the application of
the International Financial Reporting Standards (IFRS) both in Japan and overseas.

English Translation of "KESSAN TANSHIN" originally issued in Japanese

65. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Consolidated Balance Sheets
Yen (millions)
As of March 31, 2016
As of March 31, 2017
Composition ratio

Composition ratio

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

99,915

142,181Time deposits ....................................................................

15,54534,329

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

48,26323,441

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

1,079

1,199

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

64,30967,086Less- Allowance for doubtful receivables .....................

(1,173)(1,137)

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

178,791

167,398

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

5,454

4,723

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

15,39013,349Total current assets ........................................................

427,573

Trade receivables-

76.6%

452,569

75.8%

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

22,43622,358

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

94,704

94,927

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

91,36591,493

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

2,662

5,531

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

211,167

214,309

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

(118,344)(119,802)

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

92,823

16.6%

94,507

15.8%

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

21,872

34,004

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

721

721

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

4,107

3,641

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

610

650

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

10,318

11,157

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

37,6286.8%50,173

8.4%

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

558,024100.0%

597,249

100.0%English Translation of "KESSAN TANSHIN" originally issued in Japanese

7

Yen (millions)
As of March 31, 2016
As of March 31, 2017
Composition ratio

Composition ratio

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

2,195

6,579

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

20,62026,347

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

6,521

7,122

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

9,350

10,537

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

9,143

9,431

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

4,440

6,944

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

3,084

3,134

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

9,545

8,178

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

64,898

11.6%

78,272

13.1%

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

30

18

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

3,271

3,161

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

4,974

8,313

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

1,481

1,674

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

9,756

1.8%

13,166

2.2%

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

74,65413.4%

91,43815.3%

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

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

45,45645,501

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

5,669

5,669

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

425,473456,546

Accumulated other comprehensive loss ...........................

(9,049)(17,728)

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

(11,602)(11,623)

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

479,752

86.0%

502,170

84.1%

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

3,618

0.6%

3,641

0.6%

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

483,370

86.6%

505,811

84.7%

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

558,024100.0%

597,249

100.0%English Translation of "KESSAN TANSHIN" originally issued in Japanese8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, 2017
March 31, 2016
Composition ratio

Composition ratio

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

423,623100.0%

414,999

100.0%

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

270,12163.8%

267,506

64.5%

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

153,50236.2%

147,493

35.5%

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

88,826

20.9%

84,92920.4%

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

64,676

15.3%

62,56415.1%

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

2,468

2,512

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

(115)

(104)

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

(1,552)(233)

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

1,418

26

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

(5,403)(27)

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

(3,184)(0.8%)

2,174

0.5%

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

61,492

14.5%

64,738

15.6%

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

18,707

19,988Deferred...........................................................................................

812

(378)

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

19,5194.6%

19,6104.7%

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

41,9739.9%

45,128

10.9%

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

358

0.1%

346

0.1%

NET INCOME ATTRIBUTABLE TO MAKITA CORPORATION ...

41,6159.8%

44,782

10.8%

English Translation of "KESSAN TANSHIN" originally issued in Japanese9Consolidated Statements of Comprehensive Income
Yen (millions)
For the year ended
For the year ended
March 31, 2017
March 31, 2016
41,97345,128Foreign currency translation adjustment ........................................

(26,304)(19,812)

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

(3,036)

10,742

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

(2,678)

192

Total other comprehensive loss ..................................................

(32,018)(8,878)COMPREHENSIVE INCOME .......................................................

9,955

36,250Less-Comprehensive income
attributable to the non-controlling interest ....................................

231

147

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

9,724

36,103NET INCOME ..................................................................................
OTHER COMPREHENSIVE INCOME (LOSS):

English Translation of "KESSAN TANSHIN" originally issued in Japanese103. Consolidated Statements of Changes in Equity
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)

486,021

3,564

(12)

(12)

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

Total
equity489,585(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
loss .........................

(31,891)
35

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

23,80545,45635
5,669

425,473(9,049)(11,602)35

479,7523,618

483,370

Yen (millions)
For the year ended March 31, 2017
Makita Corporation shareholders’ equity

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

Commonstock

Additional
paid-in
capitalLegalreserve

Retainedearnings

Accumulated
othercomprehensive
loss

Treasurystock

Total Makita
Corporation
shareholders’equityNoncontrollinginterest

23,80545,456

5,669

425,473(9,049)(11,602)479,752

3,618

(21)

(21)

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

Total
equity483,370(21)(13,709)(13,709)(124)(13,833)

44,782

44,782346

45,128(8,679)(199)(8,878)Comprehensive
income (loss) .............
Net income .............
Other
comprehensive
loss .........................

(8,679)45

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

23,80545,501

455,669

456,546(17,728)

English Translation of "KESSAN TANSHIN" originally issued in Japanese(11,623)

502,17045
3,641

505,81111

4. Consolidated Statements of Cash Flows
Yen (millions)
For the year ended
March 31, 2016

For the year ended
March 31, 2017

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

41,97345,128Depreciation and amortization .................................................................

9,284

8,943

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

812

(378)

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

(1,418)(26)

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

5,403

27

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

(39)

385

Changes in assets and liabilitiesTrade receivables...................................................................................

(3,152)(4,652)Inventories .............................................................................................

(15,588)2,525

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

(2,821)

9,171

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

177

3,472

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

(1,253)(684)

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

810

(560)

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

34,18863,351

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

(11,769)(13,222)

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

(9,997)(1,217)

CASH FLOWS FROM INVESTING ACTIVITIES:

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

15,26830,663

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

500-

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

-(8,601)

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

500

5,700

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

1,421

383

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

(36,169)(56,437)

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

34,251

37,384

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

(578)

332

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

(6,573)(5,015)

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

867

4,691

(3,556)(329)

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

(12)

(22)

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

(16,016)(13,709)

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

(2)

(126)

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

(18,719)(9,495)(3,510)(6,575)NET CHANGE IN CASH AND CASH EQUIVALENTS .............................

5,386

42,266

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

94,52999,915

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

99,915

142,181

English Translation of "KESSAN TANSHIN" originally issued in Japanese12

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 Japanese13Condensed Operating Segment Information
Yen (millions)
For the year ended March 31, 2016
North
Asia
Other area
Total
America

Eliminations

Consolidated

423,623
276,452(276,452)

423,623-

64,218700,075(276,452)

423,623

187,145

61,878639,837(280,890)

358,947

26,801

2,340

60,2384,438

64,676

Eliminations

Consolidated

Japan

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

92,36676,976

174,126
4,698

69,793
3,952

23,316
190,630

64,022
196

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

169,342

178,824

73,745

213,946

Operating expenses .......

150,527

167,571

72,716

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

18,815

11,253

1,029

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

Yen (millions)
For the year ended March 31, 2017
North
Asia
Other area
Total
AmericaJapan

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

97,797
144,791

169,204
4,238

68,0693,553

22,336
172,357

57,593525

414,999
325,464(325,464)

414,999-

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

242,588

173,442

71,622

194,693

58,118740,463(325,464)

414,999

Operating expenses .......

218,973

159,804

70,035

173,637

55,732

678,181(325,746)

352,435

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

23,615

13,6381,587

21,056

2,386

62,282282

62,564

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

Net sales by product categories
Yen (millions)
For the year ended
For the year ended
March 31, 2016
March 31, 2017
Composition ratio

Composition ratio

Increase(Decrease)(%)

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

356,165
67,45884.1
15.9

347,288
67,711

83.7
16.3

(2.5)
0.4

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

423,623100.0

414,999

100.0

(2.0)

English Translation of "KESSAN TANSHIN" originally issued in Japanese

14

Information per share
Yen

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

As ofMarch 31, 2016

As ofMarch 31, 2017

1,767.26

1,849.88
Yen

For the year ended
March 31, 2016
Earning per share
Net income attributable to
Makita Corporation common shareholders(Basic) .......................................................................
(Diluted) ....................................................................

153.30153.29For the year ended
March 31, 2017164.96164.95

Note: The Company implemented a two-for-one common stock split, effective April 1, 2017. We calculated on theassumption that the relevant stock split had been implemented at the beginning of the previous consolidated
fiscal year.
Net income per share (Basic) is calculated on the basis of the average number of shares outstanding during theyear. Average number of shares outstanding is as follows:
For the year ended March 31, 2017: 271,463,676
For the year ended March 31, 2016: 271,468,232
Net income per share (Diluted) is calculated by adjusting for all dilutive potential ordinary shares having adilutive effect.
Significant Subsequent Events:
The Company executed a stock split effective April 1, 2017, according to the resolution of the Board of Directors’
meeting on February 22, 2017.
1. Purpose of the stock split
The stock split will be conducted with the aim of increasing the liquidity of the Company's stock and expanding its
investor base by reducing the price of share-trading units.
2. Outline of the stock split(1) Method of the stock split
Each of the shares of the Company’s common stock held by shareholders included or recorded in the final
register of shareholders as of the record date of March 31, 2017 split into two shares.
(2) Number of increase in shares by the stock split
Total number of issued shares before the stock split
Number of increase in shares by the stock split
Total number of issued shares after the stock split

140,008,760 shares
140,008,760 shares
280,017,520 shares

We calculated on the assumption that the relevant stock split had been implemented at the beginning of the previous
consolidated fiscal year.

English Translation of "KESSAN TANSHIN" originally issued in Japanese

15

SUPPORT DOCUMENTATION (CONSOLIDATED)
1. Consolidated Financial Results and Forecast
For the year ended
March 31, 2015

Yen (millions)
For the year ended
March 31, 2016(%)

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, 2017

(%)

(%)

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)

414,999
74,381
340,618
62,56464,738

(2.0)
8.7
(4.1)
(3.3)
5.3

45,30717.8

41,615(8.1)

44,782

7.6

166.89118.0035.4
13,835

153.30101.0032.9
14,784164.96100.0030.3
15,344

Yen (millions)
For the six months
For the year ending
ending September
March 31, 201830, 2017(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)..........................................................................

207,000
37,300169,700
30,50031,50021,900

3.5
6.0
2.9
(9.4)
(7.5)
(9.0)

80.67
10.00

(%)

418,000
78,000340,000
60,00062,00043,000

0.7
4.9
(0.2)
(4.1)
(4.2)
(4.0)

158.40(Note 2)

Notes:
1. Regarding our forecast for dividends, refer to page 5.
2. The Company implemented a two-for-one common stock split, effective April 1, 2017. Net income attributable to Makita
Corporation common shareholders per share (basic) was calculated on the assumption that the relevant stock split had been
implemented at the beginning of the consolidated fiscal year ended March 31, 2015. However, dividends per share are amounts
paid prior to the relevant stock split.

English Translation of "KESSAN TANSHIN" originally issued in Japanese16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, 2015

Yen (millions)
For the year ended
March 31, 2016

For the year ended
March 31, 2017

(%)

(%)

(%)

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

74,381
168,992
66,14840,07965,39923,11025,093
17,196414,999

8.7
(2.9)
(2.4)
(3.3)
(9.2)
(11.6)
1.8(18.8)(2.0)

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 15. 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, 2018

For the year ended
March 31, 2015

For the year ended
March 31, 2016

For the year ended
March 31, 2017109.76
138.6917.71

120.15132.6018.86

108.34118.74
16.10

105
115
16.1

For the year ended
March 31, 2015

For the year ended
March 31, 2016

For the year ended
March 31, 2017

USD/JPY ................................
EUR/JPY ................................
RMB/JPY ...............................

(Forecast)

4. Production Ratio (unit basis)

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

10.3%
89.7%

10.2%
89.8%

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, 2018

For the year ended
March 31, 2015

For the year ended
March 31, 2016

For the year ended
March 31, 201712,124

11,76913,222

19,000

8,619
9,117

9,284
9,593

8,943
10,13910,00011,000English Translation of "KESSAN TANSHIN" originally issued in Japanese(Forecast)17