FY2017
Operating Results(Fiscal Year ended March 31, 2017)
Shiro Hori
President, Representative Director

1

FY2017 Results
Variance to FY2016

Net Sales¥415.0 billion- 2.0%

Domestic¥74.4 billion+ 8.7%

Overseas¥340.6 billion- 4.1%

Overseas sales ratio: 82.1% (FY2016: 83.8%)
21

Sales by Geographic Area
Yen inbillions

400

20.9
23.8

18.1
20.8
28.1
35.0

300

423.6

414.7

383.2

30.3
39.6
57.2

49.9

415.0
21.2
24.7
26.1
41.4

17.2
25.1
23.1

67.8

66.1

MidEast/Africa
Oceania

40.1
Central &South AmericaAsia

200

174.0

175.2

169.0

165.3

100NorthAmerica
Europe

67.7

66.0

74.4

68.4

Japan0FY14FY15FY16FY173

Effective Exchange Rate
FY2016FY2017

US$¥120.15¥108.34

Appreciation

Euro¥132.60¥118.74

Appreciation

RMB¥18.86¥16.10

9.8%

10.5%

14.6%

Appreciation
Weighted average change for all foreign currencies:
11.4% appreciated in the value of the yen

Effect on net sales: Decrease of ¥43.7 billion
42

Sales Growth (Local Currency Basis)
Japan
15%
10%

Japan
FY2016 + 1.0%
FY2017 + 8.7%

5%0%
FY2016-5%1H

FY20172H1H

2H

5

Sales Growth (Local Currency Basis)
Europe+11.3%

30%

Western Europe

20%

FY2016 + 10.2%
FY2017 + 10.0%

10%Eastern Europe /Russia

0%

FY2016 - 8.2%
FY2017 + 13.9%-10%
FY2016-20%

1H

FY2017
2H

1H

2H
63

Sales Growth (Local Currency Basis)
North America, Asia
20%

North America
FY2016 + 10.6%
FY2017 + 8.3%

10%

Asia
FY2016 + 2.0%
FY2017 + 6.9%

0%FY2016-10%1H

FY2017
2H

1H

2H
7

Sales Growth (Local Currency Basis)
Other Regions(Central & South America, Oceania, Mid-East/Africa)

Central & SouthAmerica

20%

FY2016 + 1.7%
FY2017 + 1.9%

10%

Oceania0%

FY2016 +12.3%
FY2017 +10.1%-10%Mid-East/Africa
FY2016-20%
1H

FY2016 - 4.3%
FY2017 - 10.0%

FY20172H

1H

2H
84Lithium-ion Battery Products
Outdoor Power Equipment (OPE)New Products in 2017
Lithium-ion Battery Products

Outdoor Power Equipment

HR166D

MUC353D

MHW0820／MHW0810

KS510D/KS511D

SK209GD／SK312GD／SK505GD

9Production Quantities byGeographic Area
10 thousandsof units

3,000

2,761

2,678

125

129

2,643

2,653
116

69

2,000

Central &South America

Asia
1,8671,750

1,874

1,833

North
America

1,000Europe0FY2014

136

131

131363354

301

132298300

284271270

FY2015FY2016FY2017Japan

105

Inventories
March 31, 2016

¥178.8 billion

March 31, 2017¥167.4 billion

Decrease of inventories¥11.4 billion

Breakdown:
Decrease of actual inventories¥2.5 billion

Decrease by translation into yen¥8.9 billion
11

Operating Income
FY2016FY2017

Variance

Net Sales¥423.6 billion ¥415.0 billion- 2.0%

Cost of Sales¥270.1 billion ¥267.5 billion- 1.0%

Cost of Sales
Ratio
SG&A
Expenses

63.8%

64.5%

¥88.8 billion¥84.9 billion

SG&A
Expenses Ratio

20.9%

20.4%

¥64.7 billion¥62.6 billion- 3.3%

15.3%

15.1%

Down
0.2 points

Operating
IncomeOperating
Income Ratio- 4.4%

126

Analysis of Operating Income
Procurement Exchange
Cost down

Yen inbillions

Rate

Sales +2.4
Volume-10.5+10.7
SG&A-3.8 Temporary
Factors

-0.9

64.7

62.6

FY2016FY2017

13

Other Income (Expenses),
Income Before Income Taxes, Net Income
Attributable to Makita Corporation
FY2016FY2017

Variance

Other Income(Expenses)- ¥3.2 billion¥2.2 billion + ¥5.4 billion

Income BeforeIncome Taxes¥61.5 billion¥64.7 billion+ 5.3%Net Income
Attributable toMakitaCorporation¥41.6 billion¥44.8 billion+ 7.6%

EPS¥153.30¥164.96+ 7.6%

ROE

8.6%

9.1% Up 0.5 points

Note: The Company implemented a two-for-one common stock split, effective April 1, 2017. EPS was calculated on the assumptionthat the relevant stock split had been implemented at the beginning of the previous consolidated fiscal year.

147

Capital Expenditure,
Depreciation, R&D Cost
Capital Expenditure(Yen in billions)

FY201611.8

FY201713.2

FY2018:¥19.0 billion (Forecast)
China and Okazaki Plant equipment and mold
New Construction and Relocation of Sales Subsidiaries

19.0 (Forecast)

FY2018Depreciation (Yen in billions)

R&D Cost(Yen in billions)

FY20169.3

FY2016

9.6

FY20178.9

FY201710.1

FY201810.0 (Forecast)

FY201811.0(Forecast)

15

Makita’s efforts
 Expand product lineup of Li-ion batteries
Launch Li-ion battery products

Use BL motors to increase output &efficiency and reduce size & weight

Release the 18V × 2 series and CXT series
Further increase power & capacity and reduce size & weight

Further unleash the potential of Li-ion battery products while continuously
working to increase output & capacity and reduce size & weight168

Makita’s efforts
 Expand product lineup of Li-ion batteries
Advantages of battery-powered
products

Users’ needs





 Increased eco-friendliness Improved work environment
 Reduced workload

No emissions, low noise, and low vibration
Easy to start and maintain
Compact & lightweight
Cordless & easy to handle
Usable anywhere without a power source Further increase output & capacity and reduce size & weight Expand lineup of cordless products in place of conventional products (AC 100V,engine, air) Provide easy-to-use functions for unskilled workers
 Propose products and identify needs to make the work environment friendlier toworkers
17

Makita’s efforts
 Expand product lineup of Li-ion batteries
Typical models for the current period

Cordless circular saw
HS631D

Cordless chain saw
MUC353D

Cordless vacuum
cleaner VC862D• Cutting speed equivalent
to that of AC 100V model
achieved with a highpower brushless motor• Compact body (shortest inits class)• Automatic speed change
depending on cutting load

• Usability equivalent to 30
mL engine type
• No emissions, low noise,
low vibration, and easy tomaintain & start• Cordless & easy tohandle, usable anywhere
without a power source• Capacity & suction force
suitable for various
professional cleaning
purposes18

9

Engine-powered to battery-powered

19

Makita’s efforts
 Enhance customer service
To maintain and gain top share in respective regions worldwide

Perform sales operations and offer
products that meet market needsExpand sales networks

Improve the repair system

Visit end users
with dealers

Organize training seminars
for dealers

Support dealers in sales and offer
various after-sales services

Create Makita fans through extensive customerand community-oriented sales and services

2010

FY2018 Sales Forecast
Variance to FY2017

Net Sales¥418.0 billion+ 0.7%

Domestic¥78.0 billion+ 4.9%

Overseas¥340.0 billion- 0.2%

Overseas sales ratio: 81.3% (FY2017: 82.1%)
Assumed foreign exchange rates
US$EuroEuro/US$

RMB

¥105

¥1151.10¥16.1
21

FY2018 Forecastby Geographic Area
Yen inbillions

423.6

400300

418.0

415.0
21.2
24.7
26.1
41.4

17.2
25.1
23.1
40.1

16.8
24.6
23.6

MidEast/Africa

41.0

Oceania

67.8

66.1

66.0

Central &North
America

Asia

200
174.0

169.0

168.0

100

North
America
Europe

74.4

68.4

78.0

Japan0FY2016FY2017FY2018(Forecast)

2211

Production Plan
10 thousands of units

3,000

Plan for FY2018
2,730

2,643

2,653

95

69116

Central &SouthAmerica

2,000

Asia

1,833

1,874

1,930
North
America

1,000

Europe0
FY2016131132125301298310271

270

270

FY2017Japan

FY2018(Forecast)
23FY2018 Performance Forecast
FY2017
Net Sales

FY2018

Variance¥415.0 billion ¥418.0 billion+ 0.7%

Operating Income¥62.6 billion¥60.0 billion- 4.1%

Income Before
Income Taxes¥64.7 billion¥62.0 billion- 4.2%Net Income
Attributable toMakita Corporation¥44.8 billion¥43.0 billion- 4.0%

EPS¥164.96¥158.40- 4.0%

ROE

9.1%

8.6%

Down
0.5 points

Note: The Company implemented a two-for-one common stock split, effective April 1, 2017. EPS was calculated on the assumptionthat the relevant stock split had been implemented at the beginning of the previous consolidated fiscal year.

2412

Cash Dividends
Dividend Policy

Dividend Payout Ratio: 30% or greater
FY2017FY2018(Forecast)

Net income Attributable
to Makita Corporation¥44.8 billion¥43.0 billion

EPS
Special Circumstance
Annual Cash Dividend
Per Share
Interim Dividend¥164.96(Note1)¥158.40--¥100(Note2)¥18¥10(Note2)

Year-end Dividend¥82(Note)

Payout Ratio

30.3%

30% or greater

Note1: The Company implemented a two-for-one common stock split, effective April 1, 2017. Makita Corporation shareholders’ equity
per share was calculated on the assumption that the relevant stock split had been implemented at the beginning of the previous
consolidated fiscal year.
25Note2: In April 2018, the Board of Directors plans to propose a dividend equivalent to at least 30% of net income attributable
to Makita Corporation.

Management System
Change Representative Director
・ Can swiftly respond to changes in the global
business environment
・ Can expand business further■Number of Directors: 13 （including 2 Outside Director）■Number of Audit & Statutory Board members: 4（including 3 Outside Audit & Statutory Board members）■Number of Corporate Officers except for Directors: 82613

http://www.makita.biz/
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 otherfactors. Due to the risks and uncertainties involved, actual results could differ
substantially from the content of these statements. Therefore, these statements
should not be interpreted as representation that such objectives will beachieved.

27

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