Makita Corporation
Consolidated Financial Results
for the six months
ended September 30, 2017
(U.S. GAAP Financial Information)(English translation of "KESSAN TANSHIN"
originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2017 (Unaudited)
October 30, 2017

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

1. Summary operating results of the six months ended September 30, 2017 (From April 1, 2017 to September 30,
2017)(1) CONSOLIDATED OPERATING RESULTS
Yen (millions)
For the six months ended
For the six months ended
September 30, 2016
September 30, 2017(%)(%)
Net sales................................................................
200,055(7.9)
230,951
15.4
Operating income .................................................
33,649(2.6)
38,291
13.8
Income before income taxes .................................
34,068
10.4
39,45615.8
Net income attributable to Makita Corporation ....
24,073
12.0
27,67915.0
Comprehensive income (loss)...............................
(18,905)
46,147
Yen
Earning per share net income attributable to
Makita Corporation common shareholders(Basic)...............................................................
88.68
101.96(Diluted) ...........................................................
88.67
101.95
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.
3. 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 Corporationcommon 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

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

Yen (millions)
As of March 31, 2017
As of September 30, 2017597,249
634,897
505,811
540,666
502,170
536,638

English translation of "KESSAN TANSHIN" originally issued in Japanese

84.1%

84.5%

1

2. Dividend Information
Yen
For the year ended
March 31, 2017

For the year ending
March 31, 2018
(Forecast)

Cash dividend per share:
Interim .................................................................
18.00
10.00
Year-end ..............................................................
82.00(Note)
Total ....................................................................
100.00(Note)
Notes:
1. The forecast for cash dividend announced on April 27, 2017 has not been revised.
2. The Company has revised the lower limit on annual cash dividend per share from 18 yen to 10 yen, reflecting a
two-for-one common stock split, effective April 1, 2017. However, dividends per share for the fiscal year ended
March 31, 2017 are amounts paid prior to the relevant stock split.
3. The projected amount of dividends for the year ending March 31, 2018 has not been determined yet. For further
details, refer to “Explanation regarding proper use of business forecast, and other significant matters” on page 3.
3. Consolidated Financial Performance Forecast for the year ending March 31, 2018 (From April 1, 2017 toMarch 31, 2018)
Yen (millions)
For the year ending March 31, 2018%
Net sales..................................................................................................
455,000
9.6
Operating income ...................................................................................
70,000
11.9
Income before income taxes ...................................................................
72,30011.7
Net income attributable to Makita Corporation ......................................
51,00013.9
Yen
Earning per share (Basic)
Net income attributable to
Makita Corporation common shareholders .............................................
187.87
Notes:
1. The consolidated financial forecast for the year ending March 31, 2018 has not been revised.
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) 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. 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: Yes
Note: Please refer to “Adoption of simplified accounting methods and accounting methods that are specific to the
preparation of quarterly consolidated financial statements” on page 10.
(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: Yes
2. Changes due to other reasons: None
Note: Please refer to “Changes in accounting principles, procedures and presentations” on page 10.
(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:

As of September 30, 2017:
As of March 31, 2017:
As of September 30, 2017:
As of March 31, 2017:
For the six months
ended September 30, 2017:
For the six months
ended September 30, 2016:

280,017,520
280,017,520
8,549,102
8,556,948
271,463,675
271,465,442

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 the quarterly review.
Explanation regarding proper use of business forecasts, and other significant matters
1. 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. Regarding the assumptions for the forecasts and other matters, refer to [Qualitative Information and
Financial Performance Statements] Section 3 “Explanation of Information Relevant to Forecast such as Consolidated
Financial Performance Forecast” on page 5.
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 10 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 2018 for a report on earnings for the year ending March 31, 2018. 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
will submit this proposal to the General Meeting of Shareholders scheduled for June 2018.
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 Japanese

3

[Qualitative Information and Financial Statements]
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, 2018,
developed countries’ economies gradually recovered due to steady improvement in employment and income situation,although there were uncertainties regarding the international political situation and policies. In emerging countries, theeconomy in general remained robust, since domestic demand and exports grew steadily in Southeast Asia.
Under these circumstance, on the development side, the Makita Group launched new products, mainly lithium-ion
battery product lines, such as models with high power brushless motors featuring high power and speed equivalent toAC powered ones, and the industry’s first dust-collecting system that is wirelessly connected to cordless tools. On the
production side, our overseas factories strove to reduce costs while raising local content ratios. To improve productquality stability and enhance productivity, we continued to introduce facilities that require less manpower in eachfactory worldwide. On the sales side, while trying to strengthen our community- and customer-based sales network,
including the construction of new office buildings in New Zealand and Austria and the opening of a new branch in
Warsaw, Poland, we focused on expanding the sales of cordless gardening and cleaning tools.
Our consolidated net sales for this period increased by 15.4% from the previous year to 230,951 million yen due to
steady sales at home and abroad and depreciation of the yen compared with the same period the previous year.
Operating income increased by 13.8% to 38,291 million yen (operating income ratio: 16.6%), owing to a rise in net
sales, despite deterioration in the cost-of-sales ratio due to the impact of the exchange rate. Meanwhile, income before
income taxes increased by 15.8% to 39,456 million yen (income before income taxes ratio: 17.1%) and net income
attributable to Makita Corporation shareholders increased by 15.0% to 27,679 million yen (ratio of net income
attributable to Makita Corporation shareholders: 12.0%).
Net sales results by region were as follows:
Net sales in Japan increased by 13.3% to 39,877 million yen compared to the same period of the previous year. Thiswas due to robust sales of power tools and gardening equipment, mainly lithium-ion battery products.
Net sales in Europe increased by 16.5% to 98,586 million yen. This was due to a rise in sales in Western and Eastern
Europe (almost in all regions).
Net sales in North America increased by 10.3% to 35,031 million yen, supported by solid housing demand.
Net sales in Asia increased by 20.6% to 21,463 million yen. This was due to recovery of sales in China.
Sales situations in other regions are as follows: Net sales in Central and South America, where the Brazilian economy
showed signs of breaking out from stagnation, increased by 25.8% to 13,483 million yen. Net sales in Oceania, wherelithium-ion battery products sold well, increased by 33.2% to 15,597 million yen. Meanwhile, net sales in the Middle
East and Africa, where a fall in crude oil prices affected the economy and political uncertainty continued, decreased by
16.1% to 6,914 million yen.

English translation of "KESSAN TANSHIN" originally issued in Japanese42. Explanation of Consolidated Financial Position
Total assets as of September 30, 2017 increased by 37,648 million yen to 634,897 million yen compared to thebalance as of March 31, 2017. The increase was mainly due to the increase in “Inventories”.
Total liabilities increased by 2,793 million yen to 94,231 million yen compared to the balance as of March 31, 2017.
The increase was mainly due to the increase in “Short-term borrowings” and “Income taxes payable”.
Total equity increased by 34,855 million yen to 540,666 million yen compared to the balance as of March 31, 2017.
The increase was mainly due to the change in foreign currency translation adjustment included in “Accumulated othercomprehensive income (loss)”.
3. Explanation of Information Relevant to Forecast such as Consolidated Financial Performance Forecast
As “Revision of Forecast for Performance” announced on October 25, 2017, because the yen has remained weakeragainst major currencies compared to its initial assumed exchange rates announced on April 27, 2017, in addition torobust sales in Japan and overseas for the first six-months period of the fiscal year 2018 (April 1, 2017 to March 31,2018). We forecasts for the fiscal year ending March 31, 2018, net sales of 455,000 million yen, operating income of
70,000 million yen, income before income taxes of 72,300 million yen, and net income attributable to Makita
Corporation shareholders of 51,000 million yen.
[Preconditions]
The above forecast is based on the assumption of exchange rates of 110 yen to the U.S. dollar, 130 yen to the euro
and 16.8 yen to the renminbi for the six months period ending March 31, 2018.
The above forecast is based on the assumption of exchange rates of 111 yen to the U.S. dollar and 128 yen to the euro
and 16.6 yen to the renminbi for the year ending March 31, 2018.
[Reference]
Our previous exchange rates that we announced on April 27, 2017 were 105 yen to the U.S. dollar, 115 yen to theeuro and 16.1 yen to the renminbi for the year ending March 31, 2018.
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4. Consolidated Financial Statements (Unaudited)(1) Consolidated Balance Sheets
Yen (millions)
As of March 31, 2017
As of September 30, 2017
Composition ratio

Composition ratio

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

142,181

141,863

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

34,32926,659

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

23,44130,469Notes..............................................................................

1,199

1,126

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

67,08675,965Less-Allowance for doubtful receivables ......................

(1,137)(1,246)Inventories ........................................................................

167,398

190,234

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

4,723

-

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

13,34915,009Total current assets ........................................................

452,569

Trade receivables-

75.8%

480,079

75.6%

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

22,35822,887

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

94,927

99,743

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

91,493

97,049Construction in progress ...................................................

5,531

5,334

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

214,309

225,013

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

(119,802)(125,006)

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

94,50715.8%

100,007

15.8%

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

34,00434,953

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

721

721

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

3,641

3,684

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

650

3,966

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

11,157

11,487

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

50,173

8.4%

54,811

8.6%

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

597,249

100.0%

634,897

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

6Yen (millions)
As of March 31, 2017
As of September 30, 2017
Composition ratio

Composition ratio

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

6,579

8,019

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

26,34725,169Other payables ..................................................................

7,122

8,314

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

10,537

11,403

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

9,431

10,121

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

6,944

8,333

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

3,134

-

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

8,178

9,388

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

78,27213.1%

80,747

12.7%

LONG-TERM LIABILITIES:
Accrued retirement and termination benefits ....................

3,161

3,430

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

8,313

8,400

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

1,692

1,654

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

13,166

2.2%

13,484

2.1%

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

91,438

15.3%

94,231

14.8%

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

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

45,50145,511

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

5,669

5,669

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

456,546

473,095

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

(17,728)

173

Treasury stock ..................................................................

(11,623)(11,615)

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

502,170

84.1%

536,638

84.5%

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

3,641

0.6%

4,028

0.7%

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

505,811

84.7%

540,666

85.2%

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

597,249

100.0%

634,897

100.0%

As of March 31, 2017

As of September 30, 2017

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

992,000,000

992,000,000

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

280,017,520

280,017,520

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

271,460,572

271,468,418

Number of treasury stock .....................................................
8,556,948
8,549,102
Note: The Company implemented a two-for-one common stock split, effective April 1, 2017. The table above wascalculated 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 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, 2017
Composition ratio

Composition ratio

200,055 100.0%

230,951 100.0%

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

124,77862.4%

146,699

63.5%

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

75,27737.6%

84,252

36.5%

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

41,62820.8%

45,961

19.9%

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

33,64916.8%

38,291

16.6%

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

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

1,058

1,506

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

(46)

(20)

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

(579)

(471)

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

5

166

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

(19)

(16)

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

419

0.2%

1,165

0.5%

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

34,06817.0%

39,456

17.1%

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

10,812

12,892

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

(999)(1,357)

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

9,813

4.9%

11,5355.0%

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

24,255

12.1%

27,921

12.1%

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

182

0.1%

242

0.1%

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

24,073

12.0%

27,67912.0%

Consolidated Statements of Comprehensive Income
Yen (millions)
For the six months ended
For the six months ended
September 30, 2016
September 30, 201724,25527,921

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

(43,034)

19,266

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

(299)(1,032)

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

173

(8)

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

(43,160)

18,226COMPREHENSIVE INCOME (LOSS) ......................................

(18,905)

46,147Less-Comprehensive income (loss) attributable to thenon-controlling interest ............................................................

(212)

567

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

(18,693)

45,580NET 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, 2016

For the six months
ended September 30, 2017

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

24,25527,921

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

4,352

4,763

Deferred income tax benefit..........................................................

(999)(1,357)

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

(5)

(166)

Valuation losses on securities .......................................................
Gains (losses) on disposal or sales of property, plant andequipment, net ...............................................................................

19

16

56

(104)

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

(1,837)(5,452)

Changes in assets and liabilitiesInventories .................................................................................

3,036(12,762)

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

(459)

(989)

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

1,853

841

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

(372)

(286)

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

(276)

808

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

29,623

13,233

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

(5,041)(7,247)Purchases of available-for-sale securities ............................................

(606)(9,595)

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

25,0681,014

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

(3,601)(300)

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

3,000

200

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

195

302

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

(24,147)(13,816)

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

14,98922,162Other, net .............................................................................................

119

5

Net cash provided by (used in) investing activities .......................

9,976(7,275)

CASH FLOWS FROM FINANCING ACTIVITIES:
Additions to borrowings with original maturitiesof three months or less, net ..................................................................

4,551

827

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

(11)

(3)

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

(11,266)(11,130)

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

(103)

(149)

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

(6,829)(10,455)(9,286)4,179

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

23,484(318)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ...

99,915

142,181

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

123,399

141,863

CASH FLOWS FROM INVESTING ACTIVITIES:English translation of "KESSAN TANSHIN" originally issued in Japanese9(4) Notes on the assumptions for a going concern: None
Note in case there is any significant change in the shareholders’ equity: None
Changes in important subsidiaries during the period (Changes in specified subsidiaries accompanied bychanges in scope of consolidation during the quarter): None
Adoption of simplified accounting methods and accounting methods that are specific to the preparation ofquarterly consolidated financial statements:
With regard to the income tax expenses, the Company 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.
Changes in accounting principles, procedures and presentations:
In July 2015, Accounting Standards Update 2015-11 (“Simplifying the Measurement of Inventory”— ASC 330“Inventory”()) was issued. This Update applies to all inventory except for which is measured using last-in, first-out(LIFO) or the retail inventory method, and requires an entity to measure inventory at the lower of cost and net
realizable value. The Company adopted this standard on April 1, 2017. The adoption has no effect on the
Company’s financial statements.
In November 2015, the U.S. Financial Accounting Standards Board (FASB) issued Accounting Standards
Update (ASU) No. 2015-17, “Income Taxes (Topic 740): Balance Sheet Classification of Deferred Taxes.” Thisaccounting standard change requires that all deferred tax liabilities and assets be classified as noncurrent in aconsolidated balance sheet. Effective April 1, 2017, the Company has adopted this accounting standard. In adopting
this accounting standard, the Company did not adjust the prior period’s financial statement retrospectively.
Condensed Operating Segment Information
Yen (millions)
For the six months ended September 30, 2016
North
ElimiAsia
Other area
Total
Americanations

Consolidated

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

33,649Yen (millions)
For the six months ended September 30, 2017
North
ElimiAsia
Other area
Total
Americanations

Consolidated

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

Japan

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

51,40999,73898,7062,228

36,174
2,219

12,639102,294

32,023509

230,951
206,988(206,988)

230,951-

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

151,147

100,934

38,393

114,933

32,532437,939(206,988)

230,951

Operating expenses .......

132,962

92,342

37,136

104,653

30,157397,250(204,590)

192,660

Operating income .........

18,185

8,592

1,257

10,2802,375

40,689(2,398)38,291

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, 2015

Yen (millions)
For the six months
ended September
30, 2016(%)

Net sales......................................................................... 217,187
4.6
Domestic ................................................................... 32,560
0.4
Overseas .................................................................... 184,627
5.4
(9.1)
Operating income .......................................................... 34,545
Income before income taxes .......................................... 30,853 (16.8)
Net income attributable to Makita Corporation ............. 21,487 (15.8)
Earning per share (Basic)
Net income attributable to Makita Corporation
79.15
common shareholders (Yen) ..........................................
18.00
Cash dividend per share (Yen) .......................................
Dividend payout ratio (%) ............................................
11.4
Number of Employees ..................................................
14,332For the six months
ended September
30, 2017(%)

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

88.68
18.00
10.1
14,878(%)

230,951
39,877
191,074
38,29139,456
27,679

15.4
13.3
15.9
13.8
15.8
15.0

101.9610.00
9.8
15,976

Yen (millions)
For the year ending
For the year ended
March 31, 2018
March 31, 2017
(Forecast)(%)

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

414,999 (2.0)
74,3818.7
340,618 (4.1)
62,564 (3.3)
64,738
5.3
44,7827.6(%)

455,000
80,000375,000
70,00072,30051,000

9.6
7.6
10.1
11.9
11.7
13.9

Net income attributable to Makita Corporation

187.87164.96
common shareholders (Yen) .................................................................................
Cash dividend per share (Yen) ..............................................................................
100.00
Dividend payout ratio (%) ....................................................................................
30.3
Number of Employees ..........................................................................................
15,344
Notes:
1. Please refer to [Qualitative Information and Financial Statements] Section 3 “Explanation of Information
Relevant to Forecast such as Consolidated Financial Performance Forecast” on 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 therelevant stock split had been implemented at the beginning of the consolidated fiscal year ended March 31,
2016.
3. The Company has revised the lower limit on annual cash dividend per share from 18 yen to 10 yen, reflecting an
above stock split. However, dividends per share for the fiscal year ended March 31, 2016 and 2017 are amounts
paid prior to the relevant stock split.
4. 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 compared to the corresponding period of the previous
year.

English translation of "KESSAN TANSHIN" originally issued in Japanese112. Consolidated Net Sales by Geographic Area
For the six months
ended September
30, 2015

Yen (millions)
For the six months
ended September
30, 2016

For the six months
ended September
30, 2017

(%)

(%)

(%)

Japan .............................................................................. 32,560
0.4
35,204
8.1
39,877
13.3
84,629(7.5)
98,586
16.5
Europe............................................................................ 91,506
0.4North America ............................................................... 34,466
23.0
31,751(7.9)
35,031
10.3
Asia ................................................................................ 20,641
4.6
17,804 (13.7)
21,463
20.6
30,667 (19.3)
35,994
17.4
Other regions ................................................................. 38,014
4.6
Central and South America ...................................... 14,817(3.2)
10,721 (27.6)
13,48325.8
Oceania .................................................................... 12,168
9.5
11,709(3.8)
15,59733.2
8,237 (25.3)
6,914 (16.1)
The Middle East and Africa ..................................... 11,029
10.9
Total ............................................................................... 217,187
4.6
200,055(7.9)
230,951
15.4
Notes:
1. The table above sets forth Makita's consolidated net sales by geographic area based on the customer’s location
for the periods presented. Accordingly, it differs from “Condensed Operating Segment Information” on page10.
2. The table above shows the changes in the percentage ratio of net sales compared to the corresponding period of
the previous year.
3. Exchange Rates

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

For the six
months ended
September 30,
2015

For the six
months ended
September 30,
2016

Yen
For the six
months ended
September 30,
2017

121.87135.11
19.45

105.20118.0415.92

111.04126.32
16.42

For the year
ending March
31, 2018(Forecast)
111
128
16.6

4. Production Ratio (unit basis)
For the six months
ended September
30, 2015

For the six months
ended September
30, 2016

For the six months
ended September
30, 2017

Composition ratio

Composition ratio

Composition ratio

9.8%
90.2%

11.2%
88.8%

9.1%
90.9%

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, 2015

For the six months
ended September
30, 2016

For the six months
ended September
30, 2017

For the year
endingMarch 31, 2018
(Forecast)

6,177
4,573
4,587

5,041
4,352
4,950

7,247
4,763
5,451

19,00010,00011,000English translation of "KESSAN TANSHIN" originally issued in Japanese12