Makita Corporation
Consolidated Financial Results
for the year ended March 31, 2013
(U.S. GAAP Financial Information)(English translation of "KESSAN TANSHIN"
originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS
FOR THE YEAR ENDED MARCH 31, 2013 (Unaudited)
April 26, 2013

Makita Corporation
Stock code: 6586
URL: http://www.makita.co.jp/
Masahiko Goto, President, Representative Director & CEO

1. Summary operating results of the year ended March 31, 2013 (From April 1, 2012 to March 31, 2013)(1) CONSOLIDATED OPERATING RESULTS
Yen (million)
For the year ended
For the year ended
March 31, 2012
March 31, 2013%%
Net sales ......................................................................
295,7118.5
309,630
4.7
Operating income ........................................................
48,51615.8
45,366(6.5)
Income before income taxes........................................
46,9639.9
45,691(2.7)
Net income attributable to Makita Corporation...........
32,4978.7
31,076(4.4)
Comprehensive income (loss) .....................................
28,40164.1
62,444
119.9
Yen
Earning per share (Basic)
Net income attributable to
Makita Corporation common shareholders .................
Ratio of net income attributable to Makita Corporation
to shareholders' equity .................................................
Ratio of income before income taxes to total assets....
Ratio of operating income to net sales.........................

236.78228.92

10.3%
12.4%
16.4%

8.9%
11.1%
14.7%

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

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

As ofMarch 31, 2012
383,256
323,778
321,253

As of
March 31, 2013
440,974
376,332
373,543

83.8%

84.7%
Yen

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

2,366.50

2,751.78(3) CONSOLIDATED CASH FLOWS
Yen (million)
For the year ended
For the year ended
March 31, 2012
March 31, 2013
Net cash provided by operating activities....................
Net cash used in investing activities............................
Net cash used in financing activities ...........................
Cash and cash equivalents, end of year .......................

English Translation of "KESSAN TANSHIN" originally issued in Japanese

8,622(4,500)(12,707)44,81238,364(15,414)(10,650)
62,2831

2. Dividend Information
Yen
For the year
ended March 31,
2012

For the year
ended March 31,
2013

For the year
ending March
31, 2014(Forecast)

15.00
57.00
72.00

15.00
54.00
69.00

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

Yen (million)
Total cash dividend......................................................
9,804
9,366
Dividend payout ratio (%) ...........................................
30.4%
30.1%
Dividend to shareholders' equity ratio (%) ..................
3.1%
2.7%
Note:
While the Company has set forth under the Articles of Corporation of the Company 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, 2014 (From April 1, 2013 toMarch 31, 2014)
Yen (million)
For the six months ending
For the year ending
September 30, 2013
March 31, 2014
Net sales ......................................................................
Operating income ........................................................
Income before income taxes........................................
Net income attributable to Makita Corporation...........

171,000
26,70027,50018,400

%
13.1
11.1
21.2
15.9

345,000
56,00057,50039,000

%
11.4
23.4
25.8
25.5

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

135.55287.304. Others(1) Changes in important subsidiaries for the year (Changes in specified subsidiaries accompanied by changes in scopeof consolidation): Not applicable(2) Changes in accounting policies:
1. Changes due to revisions to accounting standards: Yes
2. Changes due to other reasons: Not applicable(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, 2013:
As of March 31, 2012:
As of March 31, 2013:
As of March 31, 2012:
For the year ended March 31,2013
For the year ended March 31,2012

English Translation of "KESSAN TANSHIN" originally issued in Japanese

140,008,760
140,008,760
4,262,833
4,258,242
135,748,088
137,244,683

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 1. Operating results (2) Outlook for theyear ending March 31, 2014, on page 5. The financial forecasts given above are based on information as available
at the present time, and include potential risks and uncertainties. As a consequence of the factors above and other,
actual results may vary from the forecasts provided above.
2.
Makita's basic policy on the distribution of profits is to maintain a consolidated dividend payout ratio of 30% or
greater, with a lower limit on annual cash dividends of 18 yen per share. However, in the event special
circumstances arise, computation of the amount of dividends will be based on consolidated net income
attributable to Makita Corporation after certain adjustments.
The Board of Directors plans to meet in April 2014 for a report on earnings for the year ending March 31, 2014.
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 June2014.
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, 2013
Looking at the global economic situation for the year ended March 31, 2013, economic conditions remained
stagnant in Western Europe because the sovereign debt crisis in the region lingered, also affecting the German
economy. However, the Russian economy was steady on the whole, with crude oil prices staying at high levels. In
the United States, economic recovery remained moderate, but there was significant improvement in housing
investment from the latter half of the term. In Asia, the economy grew steadily in Southeast Asian countries,
although China’s economic growth lost momentum. In Japan, business sentiment improved toward the end of theterm against the backdrop of implementation of the easy-money policy by the government and Bank of Japan, while
the Japanese economy remained weak.
Under these circumstances, on the development side, we focused on further expanding and rolling out ourlithium-ion battery product line as a series, which we began marketing ahead of competitors. In addition, we
broadened product lines with the right combination of affordability, functionality and durability to meet the needs inemerging countries. On the production side, we began full operation of a plant in Thailand in July 2012 to shorten
the lead time for supplying products to Southeast Asian countries, while expanding production capacity in our Brazil,
China and Romania plants to cope with growing demand. On the sales side, we rebuilt the buildings for the Osakaand Fukuoka branches in Japan and sales subsidiaries in Belgium and Taiwan to meet diversified needs. Throughthese steps, we have strived to maintain and improve our system of providing sales and after-sales services closer tocustomers.
Our consolidated net sales for this year increased by 4.7% to 309,630 million yen compared to the previous year.
It exceeded 300 billion yen for the first time in five years and hit the second highest level. Operating income
decreased by 6.5% to 45,366 million yen (operating income ratio: 14.7%) mainly due to the rises in the ratio of costof sales from 61.1% for the previous year to 62.9% for this period by 1.8 points as a result of depreciation of theeuro and the decline in capacity utilization at the plants. Meanwhile, because we recorded non-operating income of
325 million yen due to a decrease in foreign exchange losses and gains on securities (non-operating loss of 1,553
million yen for the previous year), income before income taxes and net income attributable to Makita Corporation
decreased by 2.7% to 45,691 million yen (income before income taxes ratio: 14.8%) and by 4.4% to 31,076 million
yen (net income attributable to Makita Corporation ratio: 10.0%), respectively.
Net sales results by region were as follows:
Net sales in Japan increased by 6.4% to 56,555 million yen compared to the previous year. This was because
sales remained favorable due to expansion of lithium-ion battery product lineups, mainly impact drivers.
Net sales in Europe increased by 1.4% to 125,024 million yen compared to the previous year. This was because
sales remained solid in Russia, though sales stayed sluggish in Western countries because of the effects of financial
uncertainty.
Net sales in North America increased by 10.7% to 41,483 million yen compared to the previous year. This was
because the yen exchange rate took a downward turn against the US dollar in addition to the recovery in housing
investment and strong Christmas sales.
Net sales in Asia increased by 11.9% to 29,106 million yen compared to the previous year. This was because
demand remained robust in Southeast Asian countries.
The sales situations in other regions are as follows. Net sales in Central and South America decreased by 1.9% to22,919million yen compared to the previous year, because local currencies depreciated. Net sales in Oceania
increased by 6.0% to 18,848 million yen due to the effects of sales promotion activities.
Net sales in the Middle East and Africa increased by 7.2% to 15,695 million yen because of the effects ofdepreciation of the yen.

English Translation of "KESSAN TANSHIN" originally issued in Japanese4(2) Outlook for the year ending March 31, 2014
In developed countries, competition among companies is expected to intensify further because recovery of
demand will remain moderate. In emerging countries including Asia, where construction demand is expected tocontinuously expand, the needs for affordable products are forecast to grow. With trends in crude oil prices and theforeign exchange rates being unpredictable, Makita is expected to continue facing a challenging businessenvironment.
In projecting the operational results for the next year, we use the following assumptions:・ Demand for electric power tools is unlikely to increase in Europe because construction investment will
decrease since the European sovereign debt crisis is expected to linger;
・ Competition is expected to intensify further in Japan and North America, though demand for electric power
tools is likely to increase due to the recovery of housing markets; and・ Demand for electric power tools is expected to expand in emerging countries due to economic growth.
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;
・ Further expanding and rolling out each product line as a series;
・ Implement measures to reduce production , procurement and distribution costs, while taking advantage ofglobal 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, 2014.
Consolidated Financial Performance Forecast for the Year Ending March 31, 2014
Yen (million)
For the year ending
For the six months ending
March 31, 2014
September 30, 2013
Net sales...................................................................
171,000
345,000
Operating income.....................................................
26,70056,000
Income before income taxes ....................................
27,50057,500Net income attributable to Makita Corporation .......
18,40039,000
The above forecast is based on the assumption of exchange rates of 95 yen to the U.S. dollar and 125 yen to the euro.
(Reference)
The actual exchange rate for the year ended March 31, 2013 was 82.9 yen to the U.S. dollar and 106.8 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.

2. Financial position(1) Analysis on assets, liabilities and total assets
The amounts, after converting to Japanese yen, on balance sheets increased because the yen depreciated against
major currencies compared with the level at the end of March 31, 2012.
Total assets as of the end of the year increased by 57,718 million yen to 440,974 million yen compared to theprevious year. The increase was mainly due to an increase in “Cash and cash equivalents” and securities.
Total liabilities as of the end of the year increased by 5,164 million yen to 64,642 million yen compared to theprevious year. This increase was mainly due to the increase in “Other payable” and “Long-term deferred income
taxes”.
Total equity as of the end of the year increased by 52,554 million yen to 376,332 million yen compared to theprevious year. This increase was mainly attributable to the increase in “Retained earnings” and due to a change in
foreign currency translation adjustment.

English Translation of "KESSAN TANSHIN" originally issued in Japanese5(2) Analysis on cash flows and financial ratios
Total cash and cash equivalents at the end of the year amounted to 62,283 million yen, increased by 17,471
million yen compared to the end of the previous year.
(Net Cash Provided by Operating Activities)
Net cash provided by operating activities amounted to 38,364 million yen, up 29,742 million yen over theprevious year (8,622 million yen for the previous year), because we conducted inventory adjustment this year since
we substantially built up inventory in the previous year.
(Net Cash Used in Investing Activities)
Net cash used in investing activities amounted to 15,414 million yen, up 10,914 million yen over the previous
year (4,500 million yen for the previous year) because we purchased investment securities and conducted capital
expenditures.
(Net Cash Used in Financing Activities)
Net cash used in financing activities amounted to 10,650 million yen, down by 2,057 million yen over theprevious year (12,707 million yen for the previous year) because we decreased purchase of treasury stock from theprevious year.

(Reference)
Trend information of financial ratios

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

2009
17.0%
84.2%
90.0%
0.0
95.6

As of (year ended) March 31,
2010
2011
2012
12.4%
15.4%
16.4%
85.0%
82.5%
83.8%
121.3%
143.1%
117.6%

2013
14.7%
84.7%
131.6%

0.0
984.9

0.0
219.2

0.0
400.3

0.3
43.5

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 2013 and 2014
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, 2013
(Result and Forecast)

For the year ending
March 31, 2014
(Forecast)

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

15.00 yen

18.00 yen

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

54.00 yen

(Note)(Note)
Total ..........................................................................
69.00 yen
Notes: The Board of Directors plans to meet in April 2014 for a report on earnings for the year ending March 31,
2014. 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 2014. 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 "Company") and its consolidated subsidiaries (collectively "Makita") mainly manufactureand sell portable electric power tools. Makita is comprised of the Company and 50 consolidated subsidiaries.
Group Structure of Makita is outlined as follows;

Outside Customers
Overseas sales and manufacturing subsidiaries: 3

Overseas sales subsidiaries: 39

Makita U.S.A. Inc.

Dolmar GmbH
(Germany)

Domestic

Makita Canada Inc.

(Manufacture and sales ofgardening equipment)

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

MakitaCorporation

Makita Nederland B.V.
(The Netherlands)
S.A. Makita N.V. (Belgium)
Makita S.p.A. (Italy)
Makita Werkzeug GmbH (Germany)
Makita Werkzeug Gesellschaft
m.b.H. (Austria)

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

Sales and manufacturingsubsidiary

Makita Numazu
Corporation(Manufacture and sales ofgardening equipment)[Absorbed and merged into
the Company as of April 1,
2013]

Makita Sp. z o.o. (Poland)Overseas manufacturingsubsidiaries: 5

Makita Corporation ofAmerica
Makita Manufacturing
Europe Ltd. (U.K.)
Makita (Kunshan) Co.,
Ltd.

Other subsidiary: 1

Makita, S.A. (Spain)

Makita EU S.R.L.
(Romania)lkMakita Oy (Finland)+ Makita (Australia) Pty. Ltd.

Makita Manufacturing(Thailand) Co., Ltd.

Makita Gulf FZE (U.A.E.)

Commencement of
production: July 2012

Other overseas sales subsidiaries: 25

Other overseas subsidiary: 1

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

Supply finished goods

English Translation of "KESSAN TANSHIN" originally issued in Japanese

Supply parts8

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

English Translation of "KESSAN TANSHIN" originally issued in Japanese

94. CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)
1. Consolidated Balance Sheets
Yen (millions)
As of March 31, 2013
As of March 31, 2012
Composition ratio

Composition ratio

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

44,81262,283Time deposits....................................................................

13,504

13,262

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

25,12538,060Notes .............................................................................

1,769

1,398

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

48,44553,583Less- Allowance for doubtful receivables .....................

(753)

(899)

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

129,571

138,953

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

5,898

5,533

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

8,392

11,102

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

276,763

Trade receivables-

72.2%

323,275

73.3%

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

20,49822,710

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

73,332

84,482

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

75,46080,484

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

6,594

3,349

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

175,884

191,025

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

(98,146)(104,740)

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

77,73820.3%

86,285

19.6%

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

19,154

18,461

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

721

721

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

4,515

4,549

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

853

961

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

3,512

6,722

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

28,755

7.5%

31,414

7.1%

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

383,256

100.0%

440,974

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

10Yen (millions)
As of March 31, 2013
As of March 31, 2012
Composition ratio

Composition ratio

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

2,351

1,695

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

21,822

21,910

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

4,313

5,556

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

6,314

7,148

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

7,803

8,295

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

5,293

5,221

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

125

129

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

5,697

6,371

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

53,71814.0%

56,325

12.8%

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

128

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

3,027

3,513

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

130

3,136

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

2,591

1,660

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

5,760

1.5%

8,317

1.9%

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

59,47815.5%

64,642

14.7%

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

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

45,42145,421

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

5,669

5,669

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

316,937

338,239

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

(59,066)(28,064)

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

(11,513)(11,527)

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

321,253

83.8%

373,543

84.7%

NONCONTROLLING INTEREST ....................................

2,525

0.7%

2,789

0.6%

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

323,77884.5%

376,332

85.3%

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

383,256

100.0%

440,974

100.0%English Translation of "KESSAN TANSHIN" originally issued in Japanese112. Consolidated Statements of Income
Yen (millions)
For the year ended
For the year ended
March 31, 2013
March 31, 2012
Composition ratio

Composition ratio

295,711 100.0%

309,630 100.0%

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

180,54161.1%

194,859

62.9%

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

115,170

38.9%

114,771

37.1%

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

66,65422.5%

69,405

22.4%

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

48,51616.4%

45,366

14.7%

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

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

1,491

1,732

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

(242)

(180)

Exchange gains (losses) on foreign currency transactions, net ........

(2,150)(1,324)

Realized gains (losses) on securities, net .......................................

(652)

97

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

(1,553) (0.5%)

325

0.1%

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

46,963 15.9%

45,691

14.8%

Current.............................................................................................

14,30913,206

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

(135)

1,301

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

14,1744.8%

14,507

4.7%

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

32,78911.1%

31,184

10.1%

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

292

0.1%

108

0.1%

NET INCOME ATTRIBUTABLE TO MAKITA CORPORATION ...

32,49711.0%

31,076

10.0%

Provision for income taxes:

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, 2013
March 31, 2012
32,78931,184Foreign currency translation adjustment ..................................

(4,952)

27,740

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

487

2,699

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

77

821

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

(4,388)31,260COMPREHENSIVE INCOME (LOSS) .....................................

28,40162,444Less-Comprehensive income (loss) attributable to thenon-controlling interest ...........................................................

146

366

COMPREHENSIVE INCOME (LOSS) ATTRIBUTABLE
TO MAKITA CORPORATION ..............................................

28,25562,078NET INCOME ............................................................................
OTHER COMPREHENSIVE INCOME (LOSS):

English Translation of "KESSAN TANSHIN" originally issued in Japanese13

4. Condensed Consolidated Statements of Cash Flows
Yen (millions)
For the year ended
For the year ended
March 31, 2013
March 31, 2012
Net cash provided by operating activities.............................................
Net cash used in investing activities.....................................................
Net cash used in financing activities ....................................................

8,622(4,500)(12,707)
1,564

38,364(15,414)(10,650)
5,171

Cash and cash equivalents, beginning of year ......................................

(7,021)
51,833

17,47144,812

Cash and cash equivalents, end of year ................................................

44,81262,283

Effect of exchange rate changes on cash and cash equivalents ............
Net change in cash and cash equivalents..............................................

5. Notes on the assumptions for a going concern: None
6. Significant Accounting Policies(1) Scope of consolidation and equity method
Number of consolidated subsidiaries: 50
Major subsidiaries are as follows;
Makita U.S.A. Inc., Makita (U.K.) Ltd., Makita France SAS, 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. For the Company, depreciation is computed principally by using
the declining-balance method over the estimated useful lives. Most of the subsidiaries have adopted thestraight-line method for computing depreciation.
4. Income Taxes
Deferred income tax assets and liabilities are recognized for the future tax consequences attributable totemporary differences between the financial statement carrying amounts of existing assets and liabilities andtheir respective tax bases and operating loss and tax credit carry forwards. The effect on deferred income tax
assets and liabilities of a change in tax rates or laws is recognized in income in the period that includes theenactment date.
5. Use of Estimates in the Preparation of Financial Statements
The preparation of financial statements in conformity with U.S. GAAP requires management to make estimatesand assumptions that affect the reported amounts of assets and liabilities and the disclosures of contingent assets
and liabilities at the date of the consolidated financial statements and the reported amounts of revenues andexpenses during the reporting period. Actual results could differ from those estimates.
6. Revenue Recognition
Makita recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred orservices are rendered, the sales price is fixed or determinable and collectibility is reasonably assured.

English Translation of "KESSAN TANSHIN" originally issued in Japanese14

(3) Changes in accounting principles, procedures and presentations:
In June 2011, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU)
2011-05, Comprehensive Income (Accounting Standards Codification (ASC) Topic 220): Presentation ofComprehensive Income. ASU 2011-05 requires an entity to report comprehensive income either in a single
continuous financial statement or in two separate but consecutive financial statements. ASU 2011-05 isretrospectively applied to all periods presented. Makita adopted ASU 2011-05 since the first quarter of this fiscal
year began April 1, 2012. This adoption did not have an impact on Makita’s financial position and results ofoperations.

7. Notes to Consolidated Financial Statements (Unaudited)
Condensed Operating Segment Information
Yen (millions)
For the year ended March 31, 2012
North
Asia
Other
Total
America

Eliminations

Consolidated

295,711
170,061(170,061)

295,711-50,066

465,772(170,061)

295,711

110,396

43,614

416,743(169,548)

247,195

10,7796,452

49,029(513)

48,516

Eliminations

Consolidated

Japan

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

71,49954,183

123,537
4,094

38,073
3,145

12,887108,288

49,715351

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

125,682

127,631

41,218

121,175

Operating expenses........

110,086

113,726

38,921

Operating income ........

15,596

13,905

2,297

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

Yen (millions)
For the year ended March 31, 2013
North
Asia
Other
Total
AmericaJapan

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

77,19447,835

126,380
3,892

41,885
2,466

13,104111,478

51,067
137309,630
165,808(165,808)

309,630-

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

125,029

130,272

44,351

124,582

51,204475,438(165,808)

309,630

Operating expenses........

109,883

118,466

42,689110,158

46,150427,346(163,082)

264,264

Operating income ........

15,146

11,806

1,662

14,424

5,054

48,092(2,726)45,366

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

Net sales by product categories
Yen (millions)
For the year ended
For the year ended
March 31, 2012
March 31, 2013
Composition ratio

Composition ratio

Increase(Decrease)(%)

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

253,101
42,61085.6
14.4

265,205
44,425

85.7
14.3

4.8
4.3

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

295,711100.0

309,630

100.0

4.7

English Translation of "KESSAN TANSHIN" originally issued in Japanese

15

Information per share
Yen

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

As ofMarch 31, 2012

As ofMarch 31, 2013

2,366.50

2,751.78
Yen

For the year ended
March 31, 2012
Earning per share (Basic)
Net income attributable to
Makita Corporation common shareholders ...............
Note:

236.78For the year ended
March 31, 2013
228.92

Net 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, 2013: 135,748,088
For the year ended March 31, 2012: 137,244,683

English Translation of "KESSAN TANSHIN" originally issued in Japanese16Short-term investments and Investments
Yen (millions)

As of March 31, 2012
Short-term
investments:

Available-for-salesecurities:

Held-to-maturity
securities:

Investments:

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

Total

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

589
6,074
13,336Grossunrealized
holding
gains
2
451
-

606

262

-

868

868

20,605
3,517

715
1

13
3

21,307
3,515

21,307
3,517

301

-

1

300

301

3,818
24,423

1
716

4
17

3,815
25,122

3,818
25,125

7,173

4,704

-

11,877

11,877

7,173
6,086

4,704
10

18

11,877
6,078

11,877
6,086

200

1

-

201

200

604

4

-

608

604

6,890
14,063

15
4,719

18
18

6,887
18,764

6,890
18,767

Cost

Gross
unrealized
Fair value
holding
losses591
13
6,512
13,336

Carrying
amount591
6,512
13,336

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

English Translation of "KESSAN TANSHIN" originally issued in Japanese

17Yen (millions)

As of March 31, 2013
Short-term
investments:

Available-for-salesecurities:

Held-to-maturity
securities:

Investments:

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

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

Total

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

Gross
unrealized
holding
losses-587

951

31,895
3,513

Fair value

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

-

1,538

1,538

2,351
3

-

34,246
3,516

34,246
3,513

100

-

-

100

100

201

-

-

201

201

3,814
35,709

3
2,354

-

3,817
38,063

3,814
38,060

6,910

7,232

-

14,142

14,142

6,910
3,432

7,232
23

-

14,142
3,455

14,142
3,432

100

1

-

101

100

400

3

-

403

400

3,932
10,842

27
7,259

-

3,959
18,101

3,932
18,074

Cost

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

Significant Subsequent Events: None

English Translation of "KESSAN TANSHIN" originally issued in Japanese

18

SUPPORT DOCUMENTATION (CONSOLIDATED)
1. Consolidated Financial Results and Forecast
For the year ended
March 31, 2011

Yen (millions)
For the year ended
March 31, 2012(%)

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, 2013

(%)

(%)

272,630
46,065
226,565
41,90942,730

10.9
7.9
11.5
37.9
27.5

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

8.5
15.4
7.0
15.8
9.9

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

4.7
6.4
4.3
(6.5)
(2.7)

29,90534.4

32,4978.7

31,076(4.4)

217.0866.00
30.4
12,054236.7872.00
30.4
12,563228.92
69.00
30.1
12,680Yen (millions)
For the six months
For the year ending
ending September
March 31, 201430, 2013(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)..........................................................................

171,000
27,500143,500
26,70027,50018,400

13.1
1.1
15.7
11.1
21.2
15.9

135.5518.00(%)

345,000
57,000288,000
56,00057,50039,000

11.4
0.8
13.8
23.4
25.8
25.5

287.30(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 Japanese19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, 2011

Yen (millions)
For the year ended
March 31, 2012

For the year ended
March 31, 2013

(%)

(%)

(%)

46,065
115,977
37,111
23,07350,404
20,295
15,383
14,726272,630

7.9
6.3
7.5
25.6
22.5
33.3
17.3
15.1
10.9

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

15.4
6.3
1.0
12.7
10.7
15.2
15.6
(0.5)
8.5

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

6.4
1.4
10.7
11.9
3.0
(1.9)
6.0
7.2
4.7

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, 2014

For the year ended
March 31, 2011

For the year ended
March 31, 2012

For the year ended
March 31, 2013

85.73
113.1279.06
109.0082.91
106.7895
125

For the year ended
March 31, 2011

For the year ended
March 31, 2012

For the year ended
March 31, 2013

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

(Forecast)

4. Production Ratio (unit basis)

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

14.5%
85.5%

12.2%
87.8%

11.6%
88.4%

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, 2014

For the year ended
March 31, 2011

For the year ended
March 31, 2012

For the year ended
March 31, 2013

9,742

13,481

11,481

15,000

7,557
7,283

7,237
7,603

7,542
8,396

8,000
9,300

English Translation of "KESSAN TANSHIN" originally issued in Japanese(Forecast)20