Makita Corporation
Consolidated Financial Results
for the six months
ended September 30, 2016
(U.S. GAAP Financial Information)(English translation of "KESSAN TANSHIN"
originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2016 (Unaudited)
October 27, 2016

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

1. Summary operating results of the six months ended September 30, 2016 (From April 1, 2016 to September 30,
2016)(1) CONSOLIDATED OPERATING RESULTS
Yen (millions)
For the six months ended
For the six months ended
September 30, 2015
September 30, 2016(%)(%)
Net sales................................................................
217,187
4.6
200,055(7.9)
33,649(2.6)
Operating income .................................................
34,545(9.1)
34,068
10.4
Income before income taxes .................................
30,853(16.8)
24,07312.0
Net income attributable to Makita Corporation ....
21,487(15.8)(18,905)
Comprehensive income (loss)...............................
16,064(55.3)
Yen
Earning per share net income attributable to
Makita Corporation common shareholders(Basic)...............................................................
158.30177.36(Diluted) ...........................................................
158.30177.35
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 the previous year.
(2) SELECTED CONSOLIDATED FINANCIAL POSITION

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

Yen (millions)
As of March 31, 2016
As of September 30, 2016
558,024
525,064
483,370
453,143
479,752
449,805
85.7%

86.0%

2. Dividend Information
Yen
For the year ended
March 31, 2016

For the year ending
March 31, 2017
(Forecast)

Cash dividend per share:
Interim .................................................................
18.00
18.00
Year-end ..............................................................
83.00(Note)
Total ....................................................................
101.00(Note)
Notes:
1. The forecast for cash dividend announced on April 27, 2016 has not been revised.
2. The projected amount of dividends for the year ending March 31, 2017 has not been determined yet. For further
details, refer to “Explanation regarding proper use of business forecast, and other significant matters” on page 3.

English translation of "KESSAN TANSHIN" originally issued in Japanese

13. Consolidated Financial Performance Forecast for the year ending March 31, 2017 (From April 1, 2016 to
March 31, 2017)
Yen (millions)
For the year ending March 31, 2017%
Net sales..................................................................................................
390,000(7.9)
Operating income ...................................................................................
60,000(7.2)
Income before income taxes ...................................................................
60,000(2.4)
Net income attributable to Makita Corporation ......................................
41,500(0.3)
Yen
Earning per share (Basic)
Net income attributable to
Makita Corporation common shareholders .............................................
305.75
Note: The consolidated financial forecast for the year ending March 31, 2017 has been revised.
4. Other(Refer to [Qualitative Information and Financial Statements] Section 4. “Other” on page 5.)(1) Changes in important subsidiaries during the period (Changes in specified subsidiaries accompanied by changes inscope of consolidation during the quarter): None
(2) Adoption of simplified accounting methods and accounting methods that are specific to the preparation of quarterly
consolidated financial statements: Yes(3) Changes in accounting policies, procedures and presentation rule applied in the preparation of the quarterly
consolidated financial statements:
1. Changes due to revisions to accounting standards: None
2. Changes due to other reasons: None
(4) 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:

English translation of "KESSAN TANSHIN" originally issued in Japanese

As of September 30, 2016:
As of March 31, 2016:
As of September 30, 2016:
As of March 31, 2016:
For the six months
ended September 30, 2016:
For the six months
ended September 30, 2015:

140,008,760
140,008,760
4,277,111
4,275,499
135,732,722
135,734,489

2

Information regarding quarterly review
This consolidated financial results report is not subject to a quarterly review stipulated under the Financial
Instruments and Exchange Act. As of the release date of this document, the quarterly consolidated review 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 [Qualitative Information and Financial
Statements] Section 3 “Explanation of Information Relevant to Forecast such as Consolidated Financial Performance
Forecast” on page 5. The financial forecast given above is based on information as available at the present time, andincludes potential risks and uncertainties. As a consequence of the factors above and other, actual results may varyfrom the forecasts provided above.
2.

Makita's basic policy on the distribution of profits is to maintain a consolidated dividend payout ratio of 30% or greater,
with a lower limit on annual cash dividends of 18 yen per share. However, in the event special circumstances arise,computation of the amount of dividends will be based on consolidated net income attributable to Makita Corporation after
certain adjustments.
The Board of Directors plans to meet in April 2017 for a report on earnings for the year ending March 31, 2017. At thetime, in accordance with the basic policy regarding profit distribution mentioned above, the Board of Directors plans topropose a dividend equivalent to at least 30% of net income attributable to Makita Corporation. The Board of Directors willsubmit this proposal to the General Meeting of Shareholders scheduled for June 2017.
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 multiplied by 100.

English translation of "KESSAN TANSHIN" originally issued in Japanese31. Qualitative Information(1) Explanation of Consolidated Operating Results
Looking at the global economic situation during the first six-month period of the fiscal year ending March 31, 2017,
in Europe, the regional economy recovered gradually, supported by solid domestic demand, although there was
uncertainty regarding the outlook for the Western 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 on the back of generally robust
domestic demand, while the Chinese economy continued slowing down. Meanwhile, in Japan, while the economy
stagnated, there were signs of recovery in housing investment.
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 raising local content
ratios. To improve product quality and enhance productivity, we worked on introducing facilities that require lessmanpower in each factory worldwide. On the sales side, while we continued trying to further improve our workplaceand customer-based sales and after-sales service—our strong point—within Japan and abroad, we endeavored to extend
our sales channels using our wide product lineup.
Our consolidated net sales for this period decreased by 7.9% from the previous year to 200,055 million yen due toappreciation of the yen compared with the same period of the previous year, although sales grew steadily at home andabroad, mainly in developed countries. Operating income decreased by 2.6% to 33,649 million yen (operating income
ratio: 16.8%), owing to a decrease in net sales, despite improvement in the cost-of-sales ratio due to the influence of theexchange rate. Meanwhile, income before income taxes increased by 10.4% to 34,068 million yen (income before
income taxes ratio: 17.0%) and net income attributable to Makita Corporation shareholders increased by 12.0% to
24,073 million yen (ratio of net income attributable to Makita Corporation shareholders: 12.0%) because we hadrecorded valuation losses on securities in the previous year.
Net sales results by region were as follows:
Net sales in Japan increased by 8.1% to 35,204 million yen compared to the same period of the previous year. Thiswas because sales mainly on new products remained solid.
Net sales in Europe decreased by 7.5% to 84,629 million yen. This was due to the appreciation of the yen against theeuro from a year earlier, although sales in general were steady in European countries.
Net sales in North America decreased by 7.9% to 31,751 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 13.7% to 17,804 million yen. This was due to sluggish sales to China and Thailand andthe 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 decreased by 3.8% to 11,709 million yen due tothe yen’s appreciation against local currencies, despite steady sales, mainly of lithium-ion battery products. Due to theimpact of the yen’s appreciation against local currencies, net sales in Central and South America, where the Brazilian
economy remained stagnant, decreased by 27.6% to 10,721; while those in the Middle East and Africa, where politicaluncertainty continued, decreased by 25.3% to 8,237 million yen.

English translation of "KESSAN TANSHIN" originally issued in Japanese4(2) Explanation of Consolidated Financial Position
Total assets as of September 30, 2016 decreased by 32,960 million yen to 525,064 million yen compared to thebalance as of March 31, 2016. The decrease was mainly due to the decrease in “Inventories” by yen’s appreciation.
Total liabilities as of September 30, 2016 decreased by 2,733 million yen to 71,921 million yen compared to thebalance as of March 31, 2016. The decrease was mainly due to a decrease in “Trade notes and accounts payable”.
Total equity as of September 30, 2016 decreased by 30,227 million yen to 453,143 million yen compared to thebalance as of March 31, 2016. The decrease was mainly due to the change in foreign currency translation adjustment
included in “Accumulated other comprehensive loss”.
(3) Explanation of Information Relevant to Forecast such as Consolidated Financial Performance Forecast
Although sales have grown steadily, the Company has revised its initial forecast for net sales for the year ending
March 31, 2017 (announced on April 27, 2016). This is because the yen has been stronger against major currencies
compared to its initial assumed exchange rates. Meanwhile, the Company has left its initial forecast for profits
unchanged, considering the impact of foreign exchange rates, etc.
Revised Forecast for consolidated performance during the fiscal year 2017 (From April 1, 2016 to March 31,
2017)
Yen
Yen (millions)

Net sales
Forecast announced previously (A) ......
Revised forecast (B) ............................
Changes (B-A) ......................................
Percentage revision ...............................

400,000
390,000(10,000)(2.5%)

OperatingincomeIncomebeforeincome taxes

Net income
attributable
to Makita
Corporation

60,00060,0000
0.0%

41,50041,5000
0.0%

60,00060,0000
0.0%

Earning per share(Basic) Net
incomeattributable to
MakitaCorporationcommonshareholders

305.75305.75-

Actual results for the previous year
ended March 31, 2016 ..........................
423,623
64,676
61,492
41,615306.59[Preconditions]
The above forecast is based on the assumption of exchange rates of 100 yen to the U.S. dollar, 110 yen to the euro
and 15.4 yen to the renminbi for the six months period ending March 31, 2017.
The above forecast is based on the assumption of exchange rates of 103 yen to the U.S. dollar and 114 yen to the euro
and 15.7 yen to the renminbi for the year ending March 31, 2017.
[Reference]
Our previous exchange rates that we announced on April 27, 2016 were 110 yen to the U.S. dollar, 120 yen to theeuro and 16.9 yen to the renminbi for the year ending March 31, 2017.
The above forecast is based on information as available at the present time, and includes potential risks anduncertainties. As a consequence of the factors above and other, actual results may vary from the forecast provided
above.
2. Other(1) Changes in important subsidiaries during the period (Changes in specified subsidiaries accompanied by changes inscope of consolidation during the quarter): None
(2) Adoption of simplified accounting methods and accounting methods that are specific to the preparation of quarterly
consolidated financial statements:
With regard to the income tax expenses, Makita computes interim income tax expense by multiplying
reasonably estimated annual effective tax rate, which includes the effects of deferred taxes, by year-to-date income
before income taxes for the reporting period.
(3) Changes in accounting principles, procedures and presentations: None

English translation of "KESSAN TANSHIN" originally issued in Japanese53. Consolidated Financial Statements (Unaudited)(1) Consolidated Balance Sheets
Yen (millions)
As of March 31, 2016
As of September 30, 2016
Composition ratio

Composition ratio

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

99,915

123,399

Time deposits ....................................................................

15,54522,495

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

48,263

21,229Notes..............................................................................

1,079

916

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

64,30960,407Less-Allowance for doubtful receivables ......................

(1,173)(1,096)Inventories ........................................................................

178,791

155,389

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

5,454

5,113

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

15,39012,668

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

427,573

Trade receivables-

76.6%

400,52076.3%

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

22,436

21,477

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

94,704

89,640Machinery and equipment .................................................

91,36587,570Construction in progress ...................................................

2,662

3,640

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

211,167

202,327

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

(118,344)(115,156)

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

92,82316.6%

87,171

16.6%

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

21,872

21,690Goodwill ...........................................................................

721

721

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

4,107

3,758

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

610

563

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

10,318

10,641

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

37,6286.8%

37,373

7.1%

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

558,024100.0%

525,064100.0%English translation of "KESSAN TANSHIN" originally issued in Japanese

6Yen (millions)
As of March 31, 2016
As of September 30, 2016
Composition ratio

Composition ratio

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

2,195

6,375

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

20,62016,507

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

6,521

6,792

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

9,350

9,081

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

9,143

9,287

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

4,440

4,053

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

3,084

615

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

9,545

8,993

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

64,898

11.6%

61,703

11.8%

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

30

24

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

3,271

2,914

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

4,974

5,360

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

1,481

1,920

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

9,756

1.8%

10,218

1.9%

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

74,65413.4%

71,921

13.7%

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

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

45,45645,479Legal reserve....................................................................

5,669

5,669

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

425,473438,280

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

(9,049)(51,815)

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

(11,602)(11,613)

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

479,75286.0%

449,805

85.7%

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

3,618

0.6%

3,338

0.6%

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

483,37086.6%

453,143

86.3%

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

558,024100.0%

525,064100.0%

As of March 31, 2016

As of September 30, 2016

Total number of shares authorized .......................................

496,000,000

496,000,000

Number of shares issued.......................................................

140,008,760

140,008,760

Number of shares issued (excluding treasury stock) ............

135,733,261

135,731,649

Number of treasury stock .....................................................

4,275,499

4,277,111

English translation of "KESSAN TANSHIN" originally issued in Japanese7(2) Consolidated Statements of Income and Consolidated Statements of Comprehensive Income
Consolidated Statements of Income
Yen (millions)
For the six months ended
For the six months ended
September 30, 2016
September 30, 2015
Composition ratio

Composition ratio

217,187 100.0%

200,055 100.0%

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

137,979

63.5%

124,778

62.4%

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

79,20836.5%

75,277

37.6%

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

44,663

20.6%

41,62820.8%

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

34,54515.9%

33,64916.8%

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

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

1,315

1,058

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

(62)

(46)

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

(1,052)(579)

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

774

5

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

(4,667)(19)

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

(3,692)(1.7%)

419

0.2%

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

30,85314.2%

34,06817.0%

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

10,061

10,812

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

(823)

(999)

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

9,238

4.2%

9,813

4.9%

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

21,615

10.0%

24,255

12.1%

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

128

0.1%

182

0.1%

NET INCOME ATTRIBUTABLE TO MAKITA CORPORATION .......

21,4879.9%

24,073

12.0%

Consolidated Statements of Comprehensive Income
Yen (millions)
For the six months ended
For the six months ended
September 30, 2016
September 30, 2015
21,61524,255

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

(3,646)(43,034)

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

(1,633)(299)

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

(272)

173

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

(5,551)(43,160)

COMPREHENSIVE INCOME (LOSS) ......................................

16,064(18,905)

Less-Comprehensive income (loss) attributable to thenon-controlling interest ............................................................

204

(212)

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

15,860(18,693)

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

English translation of "KESSAN TANSHIN" originally issued in Japanese8(3) Consolidated Statements of Cash Flows
Yen (millions)
For the six months
ended September 30, 2015

For the six months
ended September 30, 2016

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

21,61524,255

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

4,573

4,352

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

(823)

(999)

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

(774)

(5)

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

4,667

19

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

49

56

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

(4,748)(1,837)

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

(10,959)

3,036

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

(1,431)(459)

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

147

1,853

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

(788)

(372)

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

(1,358)(276)

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

10,17029,623

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

(6,177)(5,041)

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

(2,406)(606)

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

7,438

25,068Proceeds from maturities of available-for-sale securities ....................

500-

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

-(3,601)

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

300

3,000

Changes in assets and liabilities-

CASH FLOWS FROM INVESTING ACTIVITIES:

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

139

195

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

(12,322)(24,147)

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

13,16914,989Other, net .............................................................................................

(15)

119

Net cash provided by investing activities ......................................

626

9,976

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 ...................................................................

2,293

4,551

(2,316)-

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

(5)

(11)

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

(13,573)(11,266)

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

(155)

(103)

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

(13,756)(6,829)1,779(9,286)NET CHANGE IN CASH AND CASH EQUIVALENTS .................

(1,181)

23,484

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ...

94,52999,915

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

93,348123,399

English translation of "KESSAN TANSHIN" originally issued in Japanese94. Notes to Consolidated Financial Statements
Notes on the assumptions for a going concern: None
Note in case there is any significant change in the shareholders’ equity: None
Condensed Operating Segment Information
Yen (millions)
For the six months ended September 30, 2015
North
ElimiAsia
Other area
Total
Americanations

Consolidated

Japan

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

44,85940,66891,6432,439

35,4582,119

11,714
102,085

33,513
144

217,187
147,455(147,455)

217,187-

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

85,527

94,082

37,577

113,799

33,657364,642(147,455)

217,187

Operating expenses .......

75,86586,88036,55399,42232,330331,050(148,408)

182,642

Operating income .........

9,662

7,202

1,024

14,377

1,327

33,592

953

34,545

Yen (millions)
For the six months ended September 30, 2016
North
ElimiAsia
Other area
Total
Americanations

Consolidated

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

Japan

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

45,546
51,141

84,736
1,991

32,600
1,663

10,636
77,67926,53760

200,055
132,534(132,534)

200,055-

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

96,68786,72734,26388,315

26,597

332,589(132,534)

200,055

Operating expenses .......

88,502

78,862

33,16277,35425,340303,220(136,814)

166,406

Operating income .........

8,185

7,865

1,101

10,961

1,257

29,3694,280

33,649

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

English translation of "KESSAN TANSHIN" originally issued in Japanese

10

SUPPORT DOCUMENTATION (CONSOLIDATED)
1. Consolidated Financial Results and Forecast
For the six months
ended September
30, 2014

Yen (millions)
For the six months
ended September
30, 2015(%)

Net sales......................................................................... 207,642
11.7
Domestic ................................................................... 32,427
9.8
Overseas .................................................................... 175,215
12.1
Operating income .......................................................... 37,986
47.7
Income before income taxes .......................................... 37,094
37.3
33.5
Net income attributable to Makita Corporation ............. 25,505
Earning per share (Basic)
Net income attributable to Makita Corporation
187.90common shareholders (Yen) ..........................................
Cash dividend per share (Yen) .......................................
18.00
Dividend payout ratio (%) ............................................
9.6
Number of Employees ..................................................
13,180For the six months
ended September
30, 2016(%)

217,187
32,560184,627
34,54530,853
21,487

4.6
0.4
5.4
(9.1)
(16.8)(15.8)

158.3018.00
11.4
14,332(%)

200,055
35,204
164,851
33,64934,06824,073(7.9)
8.1(10.7)
(2.6)
10.4
12.0

177.3618.00
10.1
14,878

Yen (millions)
For the year ending
For the year ended
March 31, 2017
March 31, 2016
(Forecast)(%)

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

423,623 2.1
68,445 1.0
355,178 2.4
64,676 (10.1)
61,492 (10.1)
41,615 (8.1)(%)

390,000
72,000318,000
60,00060,00041,500(7.9)
5.2(10.5)
(7.2)
(2.4)
(0.3)

Net income attributable to Makita Corporation

306.59305.75common shareholders (Yen) .................................................................................
Cash dividend per share (Yen) ..............................................................................
101.00
Dividend payout ratio (%) ....................................................................................
32.9
Number of Employees ..........................................................................................
14,784
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 corresponding period of theprevious year.
2. Please refer to “Qualitative Information (3) Explanation of Information Relevant to Forecast such as
Consolidated Financial Performance Forecast” on page 5.

English translation of "KESSAN TANSHIN" originally issued in Japanese112. Consolidated Net Sales by Geographic Area
For the six months
ended September
30, 2014

Yen (millions)
For the six months
ended September
30, 2015

For the six months
ended September
30, 2016

(%)

(%)

(%)

Japan .............................................................................. 32,427
9.8
32,5600.4
35,2048.1
Europe............................................................................ 91,105
10.7
91,506
0.4
84,629(7.5)
North America ............................................................... 28,026
14.1
34,46623.0
31,751(7.9)
Asia ................................................................................ 19,725
19.5
20,641
4.6
17,804 (13.7)
Other regions ................................................................. 36,359
10.3
38,014
4.6
30,667 (19.3)
Central and South America ...................................... 15,299
5.0
14,817(3.2)
10,721 (27.6)
Oceania .................................................................... 11,116
12.7
12,1689.5
11,709(3.8)
The Middle East and Africa .....................................
9,944
16.5
11,02910.98,237 (25.3)
Total ............................................................................... 207,642
11.7
217,187
4.6
200,055(7.9)
Note: The table above sets forth Makita's consolidated net sales by geographic area based on the customer’s location forthe periods presented. Accordingly, it differs from “Condensed Operating Segment Information” on page 10. The
table above shows the changes in the percentage ratio of net sales compared to the corresponding period of theprevious year.

3. Exchange Rates

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

For the six
months ended
September 30,
2014

For the six
months ended
September 30,
2015

Yen
For the six
months ended
September 30,
2016

103.01138.9016.62

121.87135.11
19.45

105.20118.0415.92

For the year
ending March
31, 2017(Forecast)
103
114
15.7

4. Production Ratio (unit basis)
For the six months
ended September
30, 2014

For the six months
ended September
30, 2015

For the six months
ended September
30, 2016

Composition ratio

Composition ratio

Composition ratio

9.9%
90.1%

9.8%
90.2%

11.2%
88.8%

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

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

Capital expenditures ..................
Depreciation and amortization ...
R&D cost ...................................

For the six months
ended September
30, 2014

For the six months
ended September
30, 2015

For the six months
ended September
30, 2016

For the year
endingMarch 31, 2017
(Forecast)

6,807
4,102
4,552

6,177
4,573
4,587

5,041
4,352
4,950

15,0009,400
10,000English translation of "KESSAN TANSHIN" originally issued in Japanese12