Makita Corporation
Consolidated Financial Results
for the six months
ended September 30, 2018
(IFRS Financial Information)(English translation of "KESSAN TANSHIN"
originally issued in Japanese)

CONSOLIDATED FINANCIAL RESULTS
FOR THE SIX MONTHS ENDED SEPTEMBER 30, 2018 (Unaudited)
October 30, 2018

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

1. Summary operating results of the six months ended September 30, 2018 (From April 1, 2018 to September 30,
2018)(1) CONSOLIDATED OPERATING RESULTS
Yen (millions)
For the six months ended
For the six months ended
September 30, 2017
September 30, 2018(%)(%)
Revenue ................................................................
230,951
242,796
5.1
Operating profit ....................................................
37,93440,064
5.6
Profit before income taxes ....................................
38,99642,269
8.4
Profit .....................................................................
27,59029,907
8.4
Profit attributable to owners of the parent ............
27,34829,6798.5
Comprehensive income ........................................
45,89325,591(44.2)
Yen
Profit attributable to
Owners of the parent per share(Basic)..................................................................
100.74109.33(Diluted) ..............................................................
100.73109.32
Notes:
1.
Amounts of less than one million yen have been rounded.
2.
The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income taxes and profit
attributable to owners of the parent, and comprehensive income against the corresponding period of the previous year.

(2) SELECTED CONSOLIDATED FINANCIAL POSITION

Total assets ............................................................
Total equity ...........................................................
Equity attributable to owners of the parent ...........
Total Makita Corporation shareholders' equity
ratio to total assets (%) .........................................

Yen (millions)
As of March 31, 2018
As of September 30, 2018
654,841
660,917558,439
570,032
565,503
554,046
84.6%

85.6%

2. Dividend Information
Yen
For the year ended
March 31, 2018

For the year ending
March 31, 2019
(Forecast)

Cash dividend per share:
Interim .................................................................
10.00
10.00
Year-end ..............................................................
51.00(Note)
Total ....................................................................
61.00(Note)
Notes:
1. The forecast for cash dividend announced on April 26, 2018 has not been revised.
2. The projected amount of dividends for the year ending March 31, 2019 has not been determined yet. For further
details, refer to “Explanation regarding proper use of business forecast, and other significant matters” on page 2.

English translation of "KESSAN TANSHIN" originally issued in Japanese

13. Consolidated Financial Performance Forecast for the year ending March 31, 2019 (From April 1, 2018 toMarch 31, 2019)
Yen (millions)
For the year ending
March 31, 2019(%)
Revenue..................................................................................................................
490,000
2.7
Operating profit ......................................................................................................
78,500(2.2)
Profit before income taxes .....................................................................................
78,700(1.5)
Profit attributable to owners of the parent ..............................................................
54,800(0.3)
YenProfit attributable to
Owners of the parent per share...............................................................................
201.87
Notes:
1. The consolidated financial forecast for the year ending March 31, 2019 has not been revised.
2. The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income
taxes and profit attributable to owners of the parent against the previous year.
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) Changes in accounting policies and accounting estimates:
1. Changes in accounting policies required by IFRS: None
2. Changes in accounting policies other than 1: None
3. Changes in accounting estimate: None
(3) Number of shares outstanding (common stock)
1. Number of shares issued (including treasury stock):
2. Number of treasury stock:
3. Average number of shares outstanding:

As of September 30, 2018:
As of March 31, 2018:
As of September 30, 2018:
As of March 31, 2018:
For the six months ended
September 30, 2018:
For the six months ended
September 30, 2017:

280,017,520
280,017,520
8,550,012
8,549,592
271,467,793
271,463,675

This consolidated financial report is not subject to audit procedures by certified public accountants or an auditing firm.
Explanation regarding proper use of business forecasts, and other significant matters
1.

Makita has adopted International Financial Reporting Standards (IFRS) in its consolidated financial statements from theyear ending March 31, 2019. Furthermore, the Company has presented financial figures for the six-month period ended
September 30, 2017 and the year ended March 31, 2018 in accordance with IFRS.

2.

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 Statements] Section 3 “Explanation of Information Relevant to Forecast such as Consolidated Financial
Performance Forecast” on page 4.
3. 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 profit attributable to owners of the parent after certain
adjustments.
The Board of Directors plans to meet in April 2019 for a report on earnings for the year ending March 31, 2019. 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 profit attributable to owners of the parent. The Board of Directors willsubmit this proposal to the General Meeting of Shareholders scheduled for June 2019.
The consolidated dividend payout ratio is calculated as annual dividends per share divided by consolidated profit
attributable to owners of the parent per share (after adjustments for special circumstances) and multiplied by 100.
English translation of "KESSAN TANSHIN" originally issued in Japanese

2[Qualitative Information and Financial Statements]
1.

Explanation of Consolidated Operating Results
We have adopted International Financial Reporting Standards (hereinafter “IFRS”) instead of accounting principles
generally accepted in the United States of America (hereinafter “U.S. GAAP”) from the beginning of the fiscal year
ending March 31, 2019. In addition, financial figures during the first six-month period the fiscal year ending March 31,2018 and the year ended March 31, 2018, which were prepared in accordance with U.S. GAAP in the reporting of thoseprevious periods, are also reclassified in accordance with IFRS and used in the comparative analysis.
Looking at the global economic situation during the first six-month period the fiscal year ending March 31, 2019,
there were rising uncertainties, such as escalating tensions between the U.S. and China over trade and a decline inemerging-country currencies. However, the economy gradually expanded, supported by a strong employment andincome situation and robust business performance in developed countries, principally the U.S.
Under these circumstances on the development side, the Makita Group launched new products, mainly lithium-ion
battery product lines, such as cordless models with brushless motors featuring work efficiency higher than AC-powered
ones. Moreover, we established a technology development base in South Korea to enhance the capability to develop
electrical technologies and accelerate development speed. On the production side, we continued to implement measures
including the promotion of multi-polarized global production, cost reduction through local procurement of components,
and introduction of labor-saving or unmanned facilities. On the sales side, we focused on expanding the sales oflithium-ion battery products, such as cordless gardening equipment. Furthermore, we worked hard to strengthen ourcommunity- and customer-based sales network by increasing sales and after-sales service bases.
Our consolidated revenue for this period increased by 5.1% to 242,796 million yen compared to the same period of
the previous year due to robust sales both in Japan and overseas, although the value of overseas revenue translated into
yen was eroded by a fall in emerging-country currencies. Operating profit increased by 5.6% to 40,064 million yen(operating profit ratio: 16.5%) owing to a rise in revenue, although selling, general and administrative expenses
increased. Profit before income taxes increased by 8.4% to 42,269 million yen (profit before income taxes ratio: 17.4%)
and profit attributable to owners of the parent increased by 8.5% to 29,679 million yen (ratio of profit attributable toowners of the parent: 12.2%).
Revenue results by region were as follows:
Revenue in Japan increased by 9.6% to 43,699 million yen compared to the same period of the previous year. Thiswas due to the continuation of steady sales of power tools and gardening equipment, particularly lithium-ion battery
products.
Revenue in Europe increased by 7.0% to 105,458 million yen, supported by solid demand for tools in almost allareas and steady sales of cordless gardening tools, although an extremely hot summer and droughts affected sales ofgardening equipment.
Revenue in North America increased by 3.7% to 36,313 million yen due to solid sales through other sales routes,
although shipments to home improvement centers stagnated in the U.S.
Revenue in Asia decreased by 4.7% to 20,444 million yen. This was due to sluggish sales in other countries, despite
steady sales in China and India.
Revenue in Central and South America increased by 3.1% to 13,906 million yen, due to robust sales in almost all
countries amid concerns over negative impacts from the depreciation of each country’s currency.
In Oceania, sales continued growing at a level as high as the same period of the previous year, although the housing
market, which had been overheated, showed signs of slowing down. However, revenue decreased by 1.3% to 15,397
million yen due to the yen’s appreciation against local currencies.
Revenue in the Middle East and Africa increased by 9.6% to 7,579 million yen. This was because of large shipments
to local distributors, despite poor sales amid political and economic turmoil in the Middle East.

English translation of "KESSAN TANSHIN" originally issued in Japanese32. Explanation of Consolidated Financial Position
Total assets as of September 30, 2018 increased by 6,076 million yen to 660,917 million yen compared to thebalance as of March 31, 2018. The increase was mainly due to the increase in “Inventories”.
Total liabilities decreased by 5,517 million yen to 90,885 million yen compared to the balance as of March 31, 2018.
This decrease was mainly due to the decrease in trade payables and income taxes payable.
Total equity increased by 11,593 million yen to 570,032 million yen compared to the balance as of March 31, 2018.
The increase was mainly due to the increase in “Retained earnings”.

3. Explanation of Information Relevant to Forecast such as Consolidated Financial Performance Forecast
Makita reported generally solid consolidated financial results for the first six-month period of the fiscal year ending
March 31, 2019. However, there are rising uncertainties about the demand environment and developments in exchange
markets in the third quarter and later. Therefore, Makita has not revised the forecast of its consolidated financial
performance for the year ending March 31, 2019 announced on April 26, 2018.

English translation of "KESSAN TANSHIN" originally issued in Japanese

44. Condensed Consolidated Financial Statements (Unaudited)(1) Condensed Consolidated Statement of Financial Position
Yen (millions)
As of April 1, 2017
Composition ratio

As of March 31, 2018

As of September 30,
2018

Composition ratio

Composition ratio

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

142,181

147,320

135,189

Trade receivables and other receivables .........

67,262

78,988

77,135Inventories .....................................................

167,523

196,454

215,436

Other financial assets .....................................

50,11248,03736,766

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

6,682

8,663

9,818

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

433,760

72.3%

479,46273.2%

474,344

71.8%

NON-CURRENT ASSETS:
Property, plant and equipment, at cost ...........

95,488100,813

106,721

Goodwill and intangible assets.......................

6,637

6,991

7,347

Other financial assets .....................................

43,80045,56150,828Retirement benefit asset .................................

8,382

9,729

9,603

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

9,169

10,049

9,913

Other non-current assets.................................

2,317

2,236

2,161

Total non-current assets ..............................

165,79327.7%

175,37926.8%

186,573

28.2%

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

599,553

100.0%

654,841100.0%

660,917100.0%English translation of "KESSAN TANSHIN" originally issued in Japanese5

Yen (millions)
As of April 1, 2017
Composition ratio

As of March 31, 2018

As of September 30,
2018

Composition ratio

Composition ratio

LIABILITIES AND EQUITY
LIABILITIESCURRENT LIABILITIES:
Trade payables and other payables.................

33,46035,024

34,177

Borrowings.....................................................

6,564

3,361

2.642

Other financial liabilities ................................

284

429

417

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

7,264

10,071

7,995

Provisions.......................................................

3,412

2,928

3,093

Other current liabilities ...................................

24,89929,294

29,123

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

75,883

12.7%

81,107

12.4%

77,447

11.7%

NON-CURRENT LIABILITIES:
Retirement benefit liabilities .............................

3,161

3,206

3,259

Other financial liabilities ................................

18

133

124

Provisions.......................................................

1,440

1,352

1,271

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

10,738

10,388

8,570

Other non-current liabilities ...........................

234

216

214

Total non-current liabilities .........................

15,591

2.6%

15,295

2.3%

13,4382.0%

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

91,47415.3%

96,402

14.7%

90,885

13.7%

EQUITY
Common stock ...............................................

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

45,50145,53145,551Retained earnings ...........................................

427,999469,232

485,354

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

(11,623)(11,617)(11,619)

Other components of equity ...........................

18,55727,09522,412

Total equity attributable to owners of theparent .............................................................

504,23984.1%

554,046

84.6%

565,503

85.6%

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

3,840

0.6%

4,393

0.7%

4,529

0.7%

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

508,07984.7%

558,43985.3%

570,032

86.3%

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

599,553

100.0%

654,841100.0%

660,917100.0%English translation of "KESSAN TANSHIN" originally issued in Japanese6(2) Condensed Consolidated Statements of Profit or Loss and Consolidated Statements of Comprehensive Income
Condensed Consolidated Statements of Profit or Loss
Yen (millions)
For the six months
For the six months
ended September 30,
ended September 30, 2018
2017
Composition ratio

Composition ratio

REVENUE...............................................................................

230,951 100.0%

242,796 100.0%

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

(146,692) (63.5%)(152,625) (62.9%)

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

84,25936.5%

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

(46,325) (20.1%)(50,107) (20.6%)

OPERATING PROFIT ............................................................

37,93440,064

Financial income......................................................................

1,655

2,227

Financial expenses ...................................................................

(593)

(22)

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

38,996

Income tax expenses ................................................................

(11,406)

PROFIT ...................................................................................

27,59011.9%

29,907

12.3%

Owners of the parent................................................................

27,348

11.8%

29,67912.2%

Non-controlling interests .........................................................

242

0.1%

228

0.1%

16.4%

16.9%

90,171

37.1%
16.5%

42,26917.4%(12,362)

Profit attributable to:Condensed Consolidated Statements of Comprehensive Income
Yen (millions)
For the six months
For the six months
ended September 30,
ended September 30, 20182017
27,59029,907

Equity financial goods measured at fair value through othercomprehensive loss ..................................................................

(967)(3,055)

Total of items that will not be reclassified to loss ........................

(967)(3,055)

Exchange differences on translating foreign operations ..........

19,270(1,261)

Total of items that may be reclassified to profit (loss) .................

19,270(1,261)

Total other comprehensive income (loss), net of tax ...................

18,303(4,316)COMPREHENSIVE INCOME ...................................................

45,89325,591

Owners of the parent ................................................................

45,32625,284Non-controlling interests .........................................................

567

307

INCOME .....................................................................................
OTHER COMPREHENSIVE INCOME (LOSS), NET OF TAX

Items that will not be reclassified to loss

Items that may be reclassified to profit or loss

Comprehensive income attributable to:English translation of "KESSAN TANSHIN" originally issued in Japanese7(3) Condensed Consolidated Statement of Changes in Equity
Yen (millions)
For the six months ended September 30, 2017
Equity attributable to owners of the parent

Balance at April 1, 2017

Commonstock

Additional
paid-in
capital23,80545,501Retainedearnings

Profit for the period

Other
componentsof equity

Treasurystock

427,999(11,623)

18,557--

Comprehensive income
Dividends paid

27,348-

Disposal of treasury stock(11)

Share-based paymenttransaction

21

Total
equity3,840

508,079

27,348242

27,59017,97817,978325

18,303

17,97845,326567

45,893(11,130)(180)(11,310)(11,130)

Purchase of treasury stockTotal

504,239

27,348Other comprehensive income

NonControllinginterest

(3)

(3)

(3)

11

0

0

21

21

Total amounts of transactions
with owners-

10(11,130)

8-(11,112)(180)(11,292)

Balance at September 30, 2017

23,80545,511

444,217(11,615)

36,535

538,4544,227

542,681

Yen (millions)
For the six months ended September 30, 2018
Equity attributable to owners of the parent

Balance at April 1, 2018

Commonstock

Additional
paid-in
capital23,80545,531Retainedearnings

Profit for the period

Other
componentsof equity

Treasurystock

469,232(11,617)--

Dividends paid

29,679-

Disposal of treasury stock0

Share-based paymenttransaction

20

Transfer from othercomponents of equity toretained earnings

Total
equity4,393

558,439

29,679228

29,907(4,395)(4,395)79(4,316)(4,395)25,284307

25,591(13,845)(171)(14,016)(13,845)

Purchase of treasury stock

Total

554,046

29,679Other comprehensive income
Comprehensive income

27,095

NonControllinginterest

(2)

(2)

(2)

0

0

0

20

20

(288)

-

-

288

Total amounts of transactions
with owners-

20(13,557)

(2)

(288)

(13,827)(171)(13,998)

Balance at September 30, 2018

23,80545,551

485,354(11,619)

22,412565,503

4,529

570,032

English translation of "KESSAN TANSHIN" originally issued in Japanese8(4) Condensed Consolidated Statements of Cash Flows
Yen (millions)
For the six months
For the six months
ended September 30,
ended September 30,
2018
2017
CASH FLOWS FROM OPERATING ACTIVITIES:Profit ....................................................................................................

27,59029,907

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

5,186

5,575

Income tax expenses ............................................................................

11,406

12,362Financial income and expenses............................................................

(1,062)(2,205)

Loss (gain) on sales and retirement of property, plant and equipment

(104)

24

Decrease (increase) in trade receivables and other receivables ...........

(5,480)2,593

Increase in inventories .........................................................................

(12,765)(19,066)

Decrease in trade payables and other payables ....................................

(1,192)(1,538)

Increase in retirement benefit assets and liabilities ..............................

119

125

Increase in guarantee deposits .............................................................

-(9,199)Other ....................................................................................................

581

(397)

Subtotal ..........................................................................................

24,27918,181Dividends received ..............................................................................

246

367

Interest received ...................................................................................

1,253

1,059

Interest paid .........................................................................................

(20)

(22)

Income taxes paid ................................................................................

(12,050)(14,818)

Cash flows from operating activities .............................................

13,7084,767

Purchase of non-current assets .............................................................

(7,722)(12,106)

Proceeds from sales of non-current assets ...........................................

302

372

Purchase of investments ......................................................................

(9,895)(10,509)

CASH FLOWS FROM INVESTING ACTIVITIES:

Proceeds from sales and redemption of investments ..............................

1,214

1,911

Payments into time deposits ................................................................

(13,816)(13,547)

Proceeds from withdrawal of time deposits .........................................

22,162

31,554

Other ....................................................................................................

5

(33)

Cash flows from investing activities ..............................................

(7,750)(2,358)

CASH FLOWS FROM FINANCING ACTIVITIES:Net increase (decrease) in short-term borrowings .............................

827

(774)

Purchase and sales of treasury stock, net .............................................

(3)

(2)

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

(11,130)(13,845)

Other ....................................................................................................

(149)

(211)

Cash flows from financing activities .............................................

(10,455)(14,832)

EFFECT OF EXCHANGE RATE CHANGES ON CASH AND
CASH EQUIVALENTS ......................................................................

4,179

292

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

(318)(12,131)

CASH AND CASH EQUIVALENTS, BEGINNING OF PERIOD ...

142,181

147,320

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

141,863

135,189

English translation of "KESSAN TANSHIN" originally issued in Japanese9(5) Notes to Consolidated Financial Statements
Notes on the assumptions for a going concern: None
Condensed Operating Segment Information
Yen (millions)
For the six months ended September 30, 2017
North
ElimiAsia
Total
Other
Americanations

Consolidated

Japan

EuropeInter-segment ............

51,40999,73898,7062,228

36,174
2,219

12,639102,294

198,928
206,479

32,023509(206,988)

230,951-

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

151,147

100,934

38,393

114,933

405,407

32,532(206,988)

230,951

Operating profit ............

17,831

8,593

1,261

10,28137,9662,368(2,400)37,934

Yen (millions)
For the six months ended September 30, 2018
North
ElimiAsia
Total
Other
Americanations

Consolidated

Revenue:
Externalcustomers ..................

Japan

EuropeInter-segment ............

54,653102,163

105,704
2,718

37,463
2,033

13,355
107,072

211,175
213,986

31,621
431(214,417)

242,796-

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

156,816

108,422

39,496

120,427

425,161

32,052(214,417)

242,796

Operating profit ............

14,356

10,7981,088

12,55738,799

1,815

(550)

40,064

Revenue:
Externalcustomers ..................

English translation of "KESSAN TANSHIN" originally issued in Japanese10First-time Adoption of IFRSThe Makita Group has disclosed quarterly consolidated financial statements prepared in accordance with IFRS fromthe three-month period ended June 30, 2018. The Group prepared the latest consolidated financial statements preparedin accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for theyear ended March 31, 2018. The IFRS transition date is April 1, 2017.
(1) Exemptions of Retrospective Adoption of IFRS 1IFRS 1 “First-time Adoption of International Financial Reporting Standards” (“IFRS 1”) requires an entity that
adopts IFRS for the first time to prepare a complete set of financial statements based on IFRS retrospectively to priorperiods. However, IFRS 1 provides mandatory exceptions and voluntary exemptions from full retrospective application.
The effects of applying these provisions are adjusted in retained earnings or other components of equity on thetransition date.
The main exemptions adopted by the Company are as follows:・Business combinations
IFRS 1 allows an entity not to apply IFRS 3 “Business Combinations” (“IFRS 3”) retrospectively to businesscombinations that occurred prior to the transition date.
The Makita Group chose not to apply IFRS 3 retrospectively to business combinations that occurred prior to thetransition date. Consequently, the Group recognized goodwill arisen from business combinations that occurred prior to
the transition date at book value based on U.S. GAAP. Makita performed impairment tests on the goodwill at thetransition date regardless of whether there was any indication that the goodwill may be impaired.
・Exchange differences on translating foreign operations
IFRS 1 allows an entity to choose to deem the cumulative amount of the exchange differences on translating foreign
operations to be zero as of the transition date. The Makita Group deemed the cumulative amount of the exchange
differences on translating foreign operations to be zero on the transition date.
・Designation of financial instruments recognized prior to the IFRS transition date
IFRS 1 allows an entity to designate financial instruments valued at fair value through other comprehensive incomein accordance with IFRS 9 “Financial Instruments,” based on facts and circumstances that existed as of the transition
date. The Makita Group designated its financial instruments based on the circumstances as of the transition date.
(2) Mandatory Exceptions of Retrospective Adoption of IFRS 1IFRS 1 prohibits an entity from retrospectively applying IFRS with respect to “Accounting estimates,”“Derecognition of financial assets and liabilities,” “Non-controlling interest,” and “Classification and measurement offinancial assets.” The Makita Group has applied the relevant IFRSs to these transactions prospectively from thetransition date.

English translation of "KESSAN TANSHIN" originally issued in Japanese11

(3) Reconciliation
In preparing the consolidated financial position statement on the IFRS transition date, the Makita Group hasreconciliated amounts in consolidated financial statements prepared based on U.S. GAAP.
The effects of the transition from U.S. GAAP to IFRS on the Group’s financial position, financial results, and cash flow
position are presented in the following table:
Reconciliation of equity on the transition date (April 1, 2017)
Yen (millions)

Presentation under U.S.GAAP

U.S.
GAAP

Reclassification

Difference
betweenrecognition
andmeasurement

IFRS

Note

ASSETSASSETS
CURRENT ASSETS:

CURRENT ASSETS:
Cash and cash equivalents
Time deposits
Short-term investments
Notes
Accounts
Less- Allowance for doubtfulreceivables

Inventories
Deferred income taxes
Prepaid expenses and othercurrent assets
Total current assets

Presentation under IFRS

142,181
34,32923,441
1,199
67,08634,329)23,441)
1,199)
67,086)-142,181-

1,137)

1,137

-

-

167,398
4,723

67,26250,112
4,723)

125-

67,262
167,523
50,112-

13,349452,569

183)
12,450)6,484)
6,359)

6,682
433,760

Cash and cash equivalents

Trade receivables and otherreceivables
Inventories

E
E
D

Other financial assets
Prepaid expenses and othercurrent assets
Total current assets
NON-CURRENT ASSETSPROPERTY, PLANT AND
EQUIPMENT, AT COST:Land
Building and improvements
Machinery and equipment
Construction in progressLess-Accumulated
depreciation andamortization
Total net property, plant andequipment
INVESTMENTS AND OTHERASSETS:
Investments
Goodwill
Other intangible assets, net

Deferred income taxes
Other assets
Total assets

22,35894,92791,493
5,531

22,358)94,927)91,493)5,531)--

119,802)

119,802---

94,507981

95,48834,004721
3,641

34,004)721)
3,641)--

650
11,157
144,680
597,249

3,735
42,982
8,385
4,723
8,703)
12,756
306

2,902
818
3)
3,796
137)
8,357
1,998

6,637
43,800
8,382
9,169
2,317
165,793599,553

English translation of "KESSAN TANSHIN" originally issued in Japanese

Property, plant andequipment

A
E
B
D,E

Goodwill and intangible
assetsOther financial assets
Retirement benefit asset
Deferred income taxes
Other non-current assets
Total non-current assets
Total assets

12Yen (millions)

Presentation under
U.S.GAAP

U.S. GAAP

Reclassification

Difference
betweenrecognition
andmeasurement

IFRS

Note

LIABILITIESLIABILITIESCURRENT LIABILITIES:CURRENT LIABILITIES:
Short-term borrowings
Trade notes and accounts
payableOther payables
Accrued expenses
Accrued payroll
Income taxes payable
Deferred income taxes
Other liabilities
Total current liabilities
LONG-TERM
LIABILITIES:Long-term indebtedness
Accrued retirement andtermination benefits

Deferred income taxes
Other liabilities
Total long-term liabilities
Total liabilities

6,579

(15)

-

6,564

26,347
7,122
10,537
9,431
6,944
3,134
8,178
78,272

7,113(7,122)(10,537)(9,431)284
320(3,134)
3,412
16,273(2,837)448
448

33,460
284
7,264
3,412
24,89975,883

18

(18)

-

-

3,161
8,313

18
1,440
3,143

(718)

3,161
18
1,440
10,738

1,674
13,16691,438(1,440)
3,143
306

(718)
(270)

234
15,591
91,474

Borrowings
Trade payables and otherpayablesE

Additional paid-in capital
Legal reserve
Retained earnings
Treasury stock, at cost
Accumulated othercomprehensive income(loss)
Total Makita Corporation
shareholders’ equity
NON-CONTROLLINGINTEREST
Total equity
Total liabilities and equity

Other financial liabilities
Income taxes payable

E
Provisions
Other current liabilities
Total current liabilities
NON-CURRENT
LIABILITIES:
Retirement benefit
liabilities

E

Other financial liabilities
Provisions

E

Deferred tax liabilities
Other non-current
liabilities
Total non-current liabilities
Total liabilities

EQUITYMAKITA CORPORATIONSHAREHOLDERS’
EQUITY:
Common stock

Presentation under IFRSEQUITY

23,80545,501
5,669
456,546(11,623)(5,669)(29,516)-969-

23,80545,501
427,999(11,623)(17,728)

34,986

1,299

18,557502,170

(199)

2,268

504,2393,641
505,811597,249

199
306

2,268
1,998

3,840
508,079
599,553

English translation of "KESSAN TANSHIN" originally issued in Japanese

Common stock
Additional paid-in capital

A,B,C,D

Retained earnings
Treasury stock, at cost

B,C

Other components of equity

C

Total equity attributable toowners of the parent
NON-CONTROLLINGINTEREST
Total equity
Total liabilities and equity

13

Reconciliation of equity as of September 30, 2017
Yen (millions)

Presentation under U.S.GAAP

U.S.
GAAP

Reclassification

Difference
betweenrecognition
andmeasurement

IFRS

Note

ASSETS

CURRENT ASSETS:

CURRENT ASSETS:
Cash and cash equivalents
Time deposits
Short-term investments
Notes
Accounts
Less- Allowance for doubtfulreceivables

Inventories
Prepaid expenses and othercurrent assets
Total current assets

Presentation under IFRSASSETS

141,863
26,65930,4691,126
75,96526,659)30,469)1,126)
75,965)-

141,863-

1,246)

1,246

-

-

190,234-

75,98848,565129-

75,988190,363
48,56515,009480,079

43
8,377)

7,443)
7,314)

7,609
464,388

Cash and cash equivalents

Trade receivables andother receivables
Inventories

E
D

Other financial assets
Prepaid expenses and othercurrent assets
Total current assets
NON-CURRENT ASSETSPROPERTY, PLANT AND
EQUIPMENT, AT COST:

22,887
99,743
97,0495,334

22,887)
99,743)
97,049)5,334)--

125,006)

125,006---

100,007968

100,975

Goodwill

34,953721

34,953)721)--

Other intangible assets, net

3,684

3,684)--

3,966
11,487
154,818
634,897

3,761
44,576
8,724
8,955)
8,748
371

2,967
825
411)
6,205
145)
10,4093,095

6,728
45,401
8,313
10,171
2,387
173,975
638,363

Land
Building and improvements
Machinery and equipment
Construction in progressLess-Accumulated
depreciation andamortization
Total net property, plant andequipment
INVESTMENTS AND
OTHER ASSETS:
Investments

Deferred income taxes
Other assets
Total assets

English translation of "KESSAN TANSHIN" originally issued in Japanese

Property, plant andequipment

A
E
B
D

Goodwill and intangible
assetsOther financial assets
Retirement benefit asset
Deferred income taxes
Other non-current assets
Total non-current assets
Total assets

14

Yen (millions)

Presentation under
U.S.GAAP

U.S. GAAP

Reclassification

Difference
betweenrecognition
andmeasurement

IFRS

Note

LIABILITIESLIABILITIESCURRENT LIABILITIES:CURRENT LIABILITIES:
Short-term borrowings
Trade notes and accounts
payableOther payables
Accrued expenses
Accrued payroll
Income taxes payable
Other liabilities
Total current liabilities
LONG-TERM
LIABILITIES:
Accrued retirement andtermination benefits

Deferred income taxes
Other liabilities
Total long-term liabilities
Total liabilities

8,019

15)

-

8,004

25,1698,314
11,403
10,121
8,333
9,388
80,7478,302
8,314)
11,403)
10,121)
822
294
3,597
17,209
371

‐
208
208

33,471
822
8,627
3,597
26,80581,326

3,430
8,400

14
1,419
-

872

3,430
14
1,419
9,272

1,654
13,484
94,231

1,433)
371

872
1,080

221
14,356
95,682

Borrowings
Trade payables and otherpayablesE

Additional paid-in capital
Legal reserve
Retained earnings
Treasury stock, at cost
Accumulated othercomprehensive income (loss)
Total Makita Corporation
shareholders’ equity
NON-CONTROLLINGINTEREST
Total equity
Total liabilities and equity

Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
NON-CURRENT
LIABILITIESRetirement benefit
liabilities

E

Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current
liabilities
Total non-current liabilities
Total liabilities

EQUITYMAKITA CORPORATIONSHAREHOLDERS’
EQUITY:
Common stock

Presentation under IFRSEQUITY

23,80545,511
5,669
473,095
11,615)5,669)
29,516)-638-

23,80545,511
444,217
11,615)173

34,986

1,376

36,535

536,638

199)

2,015

538,454

4,028
540,666
634,897

199
371

2,015
3,095

4,227
542,681
638,363

English translation of "KESSAN TANSHIN" originally issued in Japanese

Common stock
Additional paid-in capital

A,B,C,D

Retained earnings
Treasury stock, at cost

B,C

Other components of equity

C

Total equity attributable toowners of the parent
NON-CONTROLLINGINTEREST
Total equity
Total liabilities and equity

15

Reconciliation of equity as of March 31, 2018
Yen (millions)

Presentation under
U.S.GAAP

U.S. GAAP

Reclassification

Difference
betweenrecognition
andmeasurement

IFRS

Note

ASSETS

CURRENT ASSETS:

CURRENT ASSETS:
Cash and cash equivalents
Time deposits
Short-term investments
Notes
Accounts
Less- Allowance for
doubtful receivables

Inventories
Prepaid expenses andother current assets
Total current assets

Presentation under IFRSASSETS

147,320
43,013
14,782
1,343
79,09243,013)
14,782)
1,343)
79,092)-

147,320-

1,340)

1,340

-

-

196,217-78,98848,037237-

78,988
196,454
48,037

16,150496,577

43)
9,908)

7,444)
7,207)

8,663
479,462

Cash and cash equivalents

Trade receivables and otherreceivables
Inventories

E
D

Other financial assets
Prepaid expenses and othercurrent assets
Total current assets
NON-CURRENT ASSETSPROPERTY, PLANT AND
EQUIPMENT, AT COST:

22,626

22,626)--

98,64898,868
6,027

98,648)98,868)6,027)--

126,305)

126,305---

99,864949

100,813

Goodwill

33,815721

33,815)721)--

Other intangible assets, net

3,944

3,944)--

3,975
12,135
154,454
651,031

4,033
44,621
9,564
9,755)
9,983
75

2,958
940
165
6,074
144)
10,942
3,735

6,991
45,561
9,729
10,0492,236
175,379
654,841

Land
Building andimprovements
Machinery and equipment
Construction in progressLess-Accumulated
depreciation andamortization
Total net property, plant andequipment
INVESTMENTS AND
OTHER ASSETS:
Investments

Deferred income taxes
Other assets
Total assets

English translation of "KESSAN TANSHIN" originally issued in Japanese

Property, plant andequipment

A
E
B
D

Goodwill and intangible
assetsOther financial assets
Retirement benefit asset
Deferred income taxes
Other non-current assets
Total non-current assets
Total assets

16Yen (millions)

Presentation under
U.S.GAAP

U.S. GAAP

Reclassification

Difference
betweenrecognition
andmeasurement

IFRS

Note

LIABILITIESLIABILITIESCURRENT LIABILITIES:CURRENT LIABILITIES:
Short-term borrowings
Trade notes and accounts
payableOther payables
Accrued expenses
Accrued payroll
Income taxes payable
Other liabilities
Total current liabilities
LONG-TERM
LIABILITIES:
Accrued retirement andtermination benefits

Deferred income taxes
Other liabilities
Total long-term liabilities
Total liabilities

3,411

50)

-

3,361

28,156
7,131
11,952
10,731
9,720
9,497
80,5986,868
7,131)
11,952)
10,731)
429
351
2,928
19,363
75

‐
434
434

35,024429
10,071
2,928
29,294
81,107

3,206
9,391

‐
133
1,352
-

997

3,206
133
1,352
10,3881,703
14,30094,898

1,485)
75

2)
995
1,429

216
15,29596,402

Borrowings
Trade payables and otherpayablesE

Additional paid-in capital
Legal reserve
Retained earnings
Treasury stock, at cost
Accumulated othercomprehensive income(loss)
Total Makita Corporation
shareholders’ equity
NON-CONTROLLINGINTEREST
Total equity
Total liabilities and equity

Other financial liabilities
Income taxes payable
Provisions
Other current liabilities
Total current liabilities
NON-CURRENT
LIABILITIESRetirement benefit
liabilities

E

Other financial liabilities
Provisions
Deferred tax liabilities
Other non-current
liabilities
Total non-current liabilities
Total liabilities

EQUITYMAKITA CORPORATIONSHAREHOLDERS’
EQUITY:
Common stock

Presentation under IFRSEQUITY

23,80545,531
5,669
497,456
11,617)

5,669)
29,044)-820-

23,80545,531
469,232
11,617)

8,905)

34,514

1,486

27,095551,939

199)

2,306

554,046

4,194
556,133
651,031

199
75

2,306
3,735

4,393
558,439
654,841

English translation of "KESSAN TANSHIN" originally issued in Japanese

Common stock
Additional paid-in capital

A,B,C,D

Retained earnings
Treasury stock, at cost

B,C

Other components of equity

C

Total equity attributable toowners of the parent
NON-CONTROLLINGINTEREST
Total equity
Total liabilities and equity

17

Reconciliation of profit and loss for the six-month period ended September 30, 2017 (April 1, 2017 to September
30, 2017)
Yen (millions)

Presentation under
U.S.GAAP

U.S. GAAP
230,951(146,699)
84,252

Reclassification
21
21

45,961)
38,291

Difference
betweenrecognition
andmeasurement

Note

14
14

IFRS
230,951(146,692)
84,259B

Cost of sales

(251)
(230)

113)
127)

46,325)37,934A,B

GROSS PROFIT
Selling, general, administrativeand others, net

1,506
20)

1,672
507)
1,506)
20

17)
86)
-

1,655
593)
-

F
F

471)

471

-

-

Valuation losses on securities

166
16)

166)
16

-

-

INCOME BEFORE INCOME
TAXES

39,456

(230)

230)

38,996(12,892)
1,357(11,535)
27,921

230
230
-

(956)
855
(101)
331)

(13,618)
2,212(11,406)
27,590NET SALES
Cost of sales
GROSS PROFIT
Selling, general, administrativeand others, net
OPERATING INCOME
OTHER INCOME(EXPENSE):

Interest and dividend income
Interest expense
Exchange losses on foreign
currency transactions, net
Realized gains on securities,
net

Presentation under IFRSREVENUEOPERATING PROFIT

Financial income
Financial expenses

PROFIT BEFORE INCOME
TAXES

Income tax expense:
Current
Deferred
NET INCOME

D

Income tax expenses
PROFIT
Profit attributable to:

NET INCOME
ATTRIBUTABLE TO
MAKITA CORPORATION
Less-Net income attributable
to the non-controllinginterest

27,679-331)

27,348

242

-

-

242

English translation of "KESSAN TANSHIN" originally issued in Japanese

Owners of the parent

Non-controlling interests

18

Reconciliation of comprehensive income for the six-month period ended September 30, 2017
(April 1, 2017 to September 30, 2017)
Yen (millions)

Presentation under
U.S.GAAPNET INCOME
OTHER COMPREHENSIVEINCOME (LOSS), NET OF
TAX

Unrealized holding gains(expense) on
available-for-sale securities
Pension liability adjustment

Foreign currency translation
adjustment

Total other comprehensive
income (loss)
COMPREHENSIVE INCOME

COMPREHENSIVEINCOMEATTRIBUTABLE TO
MAKITA CORPORATION
Less-Comprehensive income
attributable to thenon-controlling interest

U.S. GAAP
27,921

Reclassification-

Difference
betweenrecognition
andmeasurement

331)

IFRS
27,5901,032)
8)

-

65
8

967)
-

1,040)

-

73

967)

19,266-

4

19,27019,266-

4

19,27018,226
46,147-77
254)

18,30345,89345,580-254)

45,326

567

-

-

567

English translation of "KESSAN TANSHIN" originally issued in Japanese

Note

Presentation under IFRSINCOMEOTHER COMPREHENSIVEINCOME (LOSS), NET OF
TAX
Items that will not bereclassified to profit or loss
Equity financial assets
measured at fair value
through othercomprehensive income
Total of items that will not bereclassified to profit or loss
Items that may bereclassified to profit or loss
Exchange differences ontranslating foreign
operations
Total of items that may bereclassified to profit or loss
Total other comprehensive
income (loss), net of tax
COMPREHENSIVE INCOME
Comprehensive income
attributable to:

Owners of the parent

Non-controlling interests

19

Reconciliation of profit and loss for the year ended March 31, 2018 (April 1, 2017 to March 31, 2018)
Yen (millions)

Presentation under
U.S.GAAP

U.S. GAAP
477,298(302,173)
175,125

Reclassification
159
159

95,363)79,762Difference
betweenrecognition
andmeasurement

IFRS
477,298(301,392)
175,906

Note

622
622

B

Cost of sales

(563)
(404)

251
873

95,675)80,231A,B

GROSS PROFIT
Selling, general, administrativeand others, net

2,919
43)

3,218
3,302)
2,919)
43

38)
244)
-

3,180
3,546)-

FF

3,235)

3,235

-

-

Valuation losses on securities

299
24)

299)
24

-

-

INCOME BEFORE INCOME
TAXES

79,678(404)

591

79,865(24,943)536(24,407)
55,271

404
404
-

(948)
545
403
188

(25,487)
1,081(24,406)
55,459NET SALES
Cost of sales
GROSS PROFIT
Selling, general, administrativeand others, net
OPERATING INCOME
OTHER INCOME(EXPENSE):

Interest and dividend income
Interest expense
Exchange losses on foreign
currency transactions, net
Realized gains on securities,
net

Presentation under IFRSREVENUEOPERATING PROFIT

Financial income
Financial expenses

PROFIT BEFORE INCOME
TAXES

Income tax expense:
Current
Deferred
NET INCOME

D

Income tax expenses
PROFIT
Profit attributable to:

NET INCOME
ATTRIBUTABLE TO
MAKITA CORPORATION
Less-Net income attributable
to the non-controllinginterest

54,755-

188

54,943

516

-

-

516

English translation of "KESSAN TANSHIN" originally issued in Japanese

Owners of the parent

Non-controlling interests

20

Reconciliation of comprehensive income for the year ended March 31, 2018 (April 1, 2017 to March 31, 2018)
Yen (millions)

Presentation under
U.S.GAAPNET INCOME
OTHER COMPREHENSIVEINCOME (LOSS), NET OF
TAX

U.S. GAAP
55,271

Reclassification-

Difference
betweenrecognition
andmeasurement

188

IFRS
55,459Note

Presentation under IFRSINCOMEOTHER COMPREHENSIVEINCOME (LOSS), NET OF
TAX

Unrealized holding expense
on available-for-salesecurities

1,364)-

266

1,098)

Pension liability adjustment

544

-

356)

188

Items that will not bereclassified to profit (loss)
Equity financial assets
measured at fair value
through othercomprehensive loss
Remeasurement of defined
benefit pension plans

820)

-

90

910)

Total of items that will not bereclassified to loss
Items that may bereclassified to profit
Exchange differences ontranslating foreign
operations

Foreign currency translation
adjustment

Total other comprehensive
incomeCOMPREHENSIVE INCOME

COMPREHENSIVEINCOMEATTRIBUTABLE TO
MAKITA CORPORATION
Less-Comprehensive income
attributable to thenon-controlling interest

9,860

-

7

9,853

9,860

-

7

9,853

9,040
64,311

-

97
91

8,943
64,402

63,578-91

63,669

733

-

-

733

English translation of "KESSAN TANSHIN" originally issued in Japanese

Total of items that may bereclassified to profit
Total other comprehensive
income, net of tax
COMPREHENSIVE INCOME
Comprehensive income
attributable to:

Owners of the parent

Non-controlling interests

21Notes to Reconciliation
A. Intangible assets
As some development costs, which are a part of expenditures related to R&D that were expensed under U.S. GAAP,
meet the requirements to be capitalized under IFRS, they are recognized as intangible assets in its consolidated financial
position statement and amortized over its expected useful lives on a straight-line basis.
Due to the above-mentioned differences in the accounting standards, the unamortized balance of capitalized
development costs of 2,902 million yen, 2,967 million yen, and 2,958 million yen, respectively, were recorded as
intangible assets on the transition date, at September 30, 2017, and at March 31, 2018, respectively. Consequently,
retained earnings after deducting the adjusted deferred tax of 876 million yen, 896 million yen, and 893 million yen on
the transition date, at September 30, and at March 31, 2018, respectively, increased by 2,026 million yen, 2,071 million
yen, and 2,065 million yen, respectively.
B. Employee benefits
Under U.S. GAAP, regarding post-employment benefits under defined benefit pension plans, service cost, interest
cost, and expected return on plan assets were recognized in profit or loss. The portion of actuarial differences arisingfrom the relevant plans and past service cost incurred that was not recognized as expenses for the period was recognizedin the amount net of tax in accumulated other comprehensive income (loss), and the amount recognized in accumulated
other comprehensive income (loss) was subsequently recognized in income or loss over the average remaining service
years of employees.
Under IFRS, regarding post-employment benefits under defined benefit pension plans, current service cost and past
service cost are recognized in profit or loss, and the amount calculated by multiplying net defined benefit liability(asset) by the discount rate is recognized as interest expense (income) in profit or loss. Remeasurements of the net
defined benefit liability (asset) are recognized in other comprehensive income, and transferred from other componentsof equity directly to retained earnings, not through profit or loss.
Due to the above-mentioned differences in the accounting standards, actuarial differences of 8,869 million yen (loss)
and past service liability of 2,455 million yen (profit) on the transition date are transferred to retained earnings.
C. Exchange differences on translating foreign operations
IFRS allows an entity to choose to deem the full cumulative amount of the exchange differences on translating
foreign operations to be zero on the transition date.
Consequently, the exchange differences on translating foreign operations of 28,572 million yen out of accumulated
other comprehensive income on the transition date are transferred to retained earnings.
D. Income taxes
Under U.S. GAAP, regarding tax effect from the elimination of unrealized gains on intercompany transactions,income taxes paid by the seller were recorded as prepaid income taxes. Under IFRS, regarding the said tax effect, adeferred tax asset is recorded using the effective tax rate of the buyer as a temporary difference of assets held by thebuyer.
Due to the above-mentioned differences in the accounting standards, on the transition date, at September 30, 2017,and at March 31, 2018, other comprehensive income, net of tax decreased by 6,484 million yen, 7,443 million yen, and7,444 million yen, respectively, deferred tax assets increased by 5,730 million yen, 6,455 million yen, and 6,420 million
yen, respectively, while retained earnings declined by 754 million yen, 988 million yen, and 1,024 million yen,respectively.
E. Reclassification of items in consolidated statement of financial position
Although some items are reclassified in the consolidated statement of financial position to conform with IFRS
provisions, there is no effect on consolidated statements of income, consolidated statements of comprehensive income,and retained earnings. The following items represent major items that are reclassified in the consolidated statement offinancial position.
(i) In accordance with the presentation provisions under IFRS, financial assets and financial liabilities are presented
on an individual basis.

English translation of "KESSAN TANSHIN" originally issued in Japanese22

(ii) Under U.S. GAAP, deferred tax assets and deferred tax liabilities were presented separately in current
assets/liabilities and non-current assets/liabilities. However, since they are not allowed to be presented in current
assets/liabilities under IFRS, they are reclassified as non-current assets/liabilities.
(iii) Other reclassifications have been made by aggregating or separating presentation under U.S. GAAP to beconsistent with the presentation under IFRS.
F. Reclassification of items in consolidated statements of profit or loss
Although some items are reclassified in the consolidated statements of profit or loss to conform with IFRS provisions,
there is no effect on retained earnings. The following items represent major items that are reclassified in the
consolidated statements of profit or loss.
(i) In accordance with the presentation provisions under IFRS, financial income and financial expenses are presented
on an individual basis.
Reconciliation of consolidated cash flows for the six-month period ended September 30, 2017 and the year ended
March 31, 2018
There is no material difference between consolidated statements of cash flows disclosed in accordance with U.S.
GAAP and those disclosed in accordance with IFRS.

English translation of "KESSAN TANSHIN" originally issued in Japanese

23

SUPPORT DOCUMENTATION (CONSOLIDATED)
1. Consolidated Financial Results and Forecast
Yen (millions)
For the six months
For the six months
ended September 30,
ended September 30,
2018
2017
(%)

Revenue .....................................................................................................
Domestic ...............................................................................................
Overseas ................................................................................................
Operating profit .........................................................................................
Profit before income taxes .........................................................................
Profit attributable to owners of the parent .................................................
Profit attributable to owners of the parent per share (Yen) .......................
Cash dividend per share (Yen) .................................................................
Dividend payout ratio (%) .........................................................................
Number of Employees ...............................................................................

230,951
39,877
191,074
37,93438,99627,348100.7410.00
9.9
15,976-(%)

242,796
43,699199,097
40,06442,26929,679109.3310.00
9.1
16,087

5.1
9.6
4.2
5.6
8.4
8.5

Yen (millions)
For the year ending
For the year ended
March 31, 2019
March 31, 2018
(Forecast)
(%)

(%)

Revenue ...............................................................................................
477,298
490,000
2.7
82,57586,000 4.1
Domestic .........................................................................................
Overseas ..........................................................................................
394,723
404,000 2.4
Operating profit ...................................................................................
80,23178,500 (2.2)
79,86578,700 (1.5)
Profit before income taxes ...................................................................
Profit attributable to owners of the parent ...........................................
54,94354,800 (0.3)
202.39201.87
Profit attributable to owners of the parent per share (Yen) ...............
61.00
Cash dividend per share (Yen) ............................................................
Dividend payout ratio (%) ....................................................................
30.1
Number of Employees ........................................................................
16,137
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 4.
2. The table above shows the changes in the percentage ratio of revenue, operating profit, profit before income
taxes, and profit attributable to owners of the parent compared to the corresponding period of the previous year.
3. The percentage changes from results for the six months ended September 30, 2016 and for the year ended March
31, 2017 based on U.S. GAAP have been omitted.

English translation of "KESSAN TANSHIN" originally issued in Japanese24

2. Consolidated Revenue by Geographic Area
For the six months
ended September 30,
2017

Yen (millions)
For the six months
ended September 30,
2018

(%)

(%)

For the year ended
March 31, 2018(%)

Japan ................................................................
39,877
43,699
9.6
82,575
Europe..............................................................
98,586
105,458
7.0
202,054
North America .................................................
35,031
36,313
3.7
73,873
20,444(4.7)
44,094
Asia ..................................................................
21,463Central and South America ..............................
13,483
13,906
3.1
27,922
Oceania ............................................................
15,597
15,397(1.3)
31,284
7,579
9.6
15,496The Middle East and Africa .............................
6,914
Total .................................................................
230,951
242,7965.1
477,298
Notes:
1. The table above sets forth Makita's consolidated revenue 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 revenue compared to the corresponding period of
the previous year.
3. The percentage changes from results for the six months ended September 30, 2016 and for the year ended
March 31, 2017 based on U.S. GAAP have been omitted.

3. Exchange Rates
Yen
For the six
months ended
September 30,
2017

For the six
months ended
September 30,
2018

111.04126.32
16.42

110.26129.7916.74

110.85129.66
16.74

For the six
months ended
September 30, 2017

For the six
months ended
September 30, 2018

Composition ratio

Composition ratio

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

For the year
ended March 31,
2018

For the year
ending March
31, 2019(Forecast)
105
130
16.8

4. Production Ratio (unit basis)

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

9.1%
90.9%

9.5%
90.5%

5. Consolidated Capital Expenditures, Depreciation and Amortization, and R&D cost
Yen (millions)
For the six
For the year
For the six
months ended
ended
months ended
September 30,
March 31, 2018
September 30,
2018
2017
Capital expenditures ..................
Depreciation and amortization ...
R&D cost ...................................

7,722
5,186
5,433

12,106
5,575
5,391

English translation of "KESSAN TANSHIN" originally issued in Japanese

15,045
10,783
10,924

For the year
ended
March 31, 2018
Composition ratio

9.3%
90.7%

For the year
endingMarch 31, 2019
(Forecast)
50,00012,00010,80025