Fiscal 2016 Highlights

Contents
Fiscal 2016 Highlights

1

Message to Shareholders

4

Corporate Governance8

Directors, Audit & Supervisory Board Members andCorporate Officers

12

Reinforcing Our Global Sales
and After-sales Service Systems

13

New Products in Fiscal 2016

14

10-Year Summary

16

Consolidated Financial Statements

18

Corporate Directory

23

Corporate Data

25

Parts, Repairs andAccessories
Share of Net Sales (FY2016)

15.9%

ProfileIn 1958, Makita Corporation, founded in 1915 as an electric motor sales andrepair company, became the first company in Japan to manufacture and sellportable electric planers. Over the half century since, Makita has worked to build
a steady position as a manufacturer of portable power tools. Today, Makita
continues to provide products and services that are beneficial in creating homes
and living environments. Makita’s history is one of close interaction withcustomers and parallels the evolution of power tools. As a leading manufacturer
and marketer of power tools, Makita operates a network of production, directbases and service offices in Japan and about 50 countries around the world. The
ratio of overseas production is 90% on a unit basis, and 84% of consolidated
sales come from overseas markets. Through the power of its brand, supported bytechnology, quality and after-sales support, Makita has secured a powerfulcompetitive advantage and established a solid position as a leader in the global
power tools market.

VisionAlways placing itself in the customer’s position, Makita aims to be a global
supplier of a comprehensive range of power tools that assist people in creating
homes and living environments, while continuously striving to become a truly
global corporation. On the basis of this stance, by continuing to develop
market-leading products, we aim to become a consistently strong company. With
this, we mean a company that can capture and maintain worldwide market
leadership as a global total supplier of professional power tools, gardening
equipment and pneumatic tools to customers around the world.

Net Sales¥67,458Mil.

Share of Net Sales

Power Tools■ Power Tools■ Gardening Equipment, Household andOther Products■ Parts, Repairs and Accessories

Share of Net Sales (FY2016)

Share of Net Sales(% / FY2016)

65.3%
Net Sales¥276,752Mil.

15.9
18.8

65.3

Net Sales(millions of yen)

64,88667,45878,60079,413

271,232

276,752

56,69257,281

269,234

Gardening Equipment,
Household andOther Products
Share of Net Sales (FY2016)

18.8%
Net Sales

‘14

‘15

‘16

¥79,413Mil.
1

Fiscal 2016 Highlights

Key Figures
Net Sales

Operating
Income¥423,623Mil. ¥64,676Mil.
2.1% UP
Overseas
Net Sales Ratio

83.8%
R&D Costs¥9,593Mil.

2

10.1% DOWN
Number of
Employees(Consolidated)

14,784
CapitalExpenditures¥11,769Mil.

OperatingMargin15.3%
2.0pt DOWN
Production
Output26.53Mil.
ROE

8.6%

(units)Sales by Region
EUROPENORTH AMERICANet Sales

Net Sales¥173,987Mil.
0.7
DOWN
0.7%% DOWN

¥67,759Mil.
(% / FY2016)

17.0

ASIA (excluding Japan)
Net Sales¥41,443Mil.

18.5
18.5%% UPUP

Share of Net Sales

9.8

16.2
16.0

JAPAN

41.1

Net Sales¥68,445Mil.

4.5
4.5%% UPUPOTHER REGIONSNet Sales¥71,989Mil.
3.9
DOWN
3.9%% DOWN

1.0
1.0%% UPUP

Central andSouth America
Net Sales

Oceania
Net Sales

The Middle East
and Africa
Net Sales¥26,149Mil. ¥24,653Mil. ¥21,187Mil.
13.7
DOWN
13.7%%DOWN

3.8
3.8%%UPUP

1.5
1.5%%UPUP

3

Message to Shareholders

Aiming to Be the Global Leader in Power Tools

Masahiko Goto
Chairman,
Representative Director

Shiro Hori
President,
Representative Director

What are the highlights offiscal 2016?

other factors. Meanwhile, the U.S. economy expanded
moderately on the back of firm consumer spending andhousing investment. Among emerging nations, markets
mainly in oil-producing countries were weakened by

4

In fiscal 2016 (the year ended March 31, 2016),

falling crude oil prices, while the Chinese economy

economies in Western Europe grew steadily, especiallycontinued to slow, causing surrounding nations in Asia

in major nations, while the Russian economy remained

to stagnate. In Japan, there were signs of improvements

sluggish due to low crude oil prices, a weak ruble, andin corporate results and the employment situation, butGreetings from theManagementof recovery in Southern Europe, which had been weak,thus compensating for stagnation in the Russian market.
In general, emerging nations faced economic slowdown,
including in the BRIC countries, previously drivers of the

As a global supplier of aworld economy, and some regions struggled here andcomprehensive range of power

there. In this context, we achieved positive year-on-year

tools that assist people in creating

growth in local-currency terms in all business regions,homes and living environments,
Makita aspires to be No. 1 in theworld market for power tools.

except in the Middle East and Africa, which we believe isa satisfactory outcome.

Having celebrated 100 years since
our foundation, we have takena new step. Even in this difficult
economic environment, we willcontinue actively maintaining
and strengthening our sales
capabilities—a key Makita

Which initiatives do you
regard as successful infiscal 2016?

strength—while responding flexibly

To celebrate our centennial, we held a variety of events

to change. In the process, weto convey our feeling of gratitude to people all over thewill make solid progress toward

world. Through these activities, we worked particularly

becoming a truly strong company

hard to strengthen relations with customers, and we feelfor the next generation.

this directly contributed to our favorable performance.
In the background is Makita’s long-held culture, whichplaces importance on close communication withcustomers. Based on information about what customers
think and what they want, we have identified our future
direction and developed specific products accordingly—anapproach that has helped build the Makita of today. Thisapproach has led to the creation of products powered bylithium-ion batteries that have earned very high acclaim.

weak personal consumption cast a shadow over economic
recovery.
In fiscal 2016, Makita posted consolidated net sales

During the year, we continued making investments
aimed at improving sales promotion and sales expansion
activities and after-sales services with close ties to localof ¥423.6 billion, up 2.1% from the previous year. This

customers, adopting a global perspective unrelated

marked record-high net sales and increased revenue forto economic changes in our business development

the sixth consecutive year. In Europe, a major market

regions. These efforts had a positive effect, we believe.

for Makita, we enjoyed favorable results, especially inAs the clouds darken over our business environment,

major Western European nations. We also noted signs

characterized by irregular national and regional economic

5How do you evaluate
your initiatives andoutcomes with respect toproduct development andproduction?
On the production side, we are continuing to promotelabor-saving and automation at our manufacturing plants
around the world, which will not only reduce human error
and ensure consistently high product quality but also
contribute to cost reductions. We will continue such efforts
into the future.
From a development point of view, we will focus
on eliminating cords from power tools, making themrechargeable, while replacing conventional engines withbattery-powered motors. With this development theme
as a base, we will concentrate on meeting the needs ofequipment that generate less vibrations, dust and sounds,
as well as worksites that are safe, comfortable, and ecoperformances, market conditions are deteriorating. Under

friendly. In fiscal 2016, we expanded and upgraded ourour long-term perspective, we firmly maintain ties withlineup of products other than power tools, reflecting

customers in regions where we have started businessfeedback from people working on the front lines. New

development, rather than being swayed by temporary

products included a worksite-compatible cordless coffee

peaks and troughs. By addressing needs in this way, we

maker, cordless backpack vacuum cleaner, summer-

demonstrate the importance we place on not allowing

cooling cordless fan jacket, and winter-warming cordlessthe quality of our services to decline. We will continue

heated jacket. These items attracted numerous inquiries

developing our business in the eyes of our customers.

and were so popular that production could not keep up

Entrenching this approach will also lead to morein some cases. We also launched sales of Robot Cleaner,

opportunities to increase our market share in regions

a commercial-use robot vacuum cleaner developed

where business development is underway. Going forward,

jointly with Sharp Corporation. This product combines

we will continue striving to reinforce our network of

the automated drive and sensing technologies amassed

service operations.

by Sharp with Makita’s strength in battery systems. We
will continue sharing advanced technologies to develop
products that create new levels of market value.
Makita is stepping up initiatives in outdoor power
equipment (OPE), or gardening equipment, its second

6business pillar after power tools. In addition to improving
environmental performance, where public interest is high,we are tackling the very big challenge of replacing engine-

What is your growthstrategy going forward?

driven products, which have traditionally dominated themarket, with battery-powered models. For customers in

In addition to communicating with customers, we needindustrialized nations, in particular, our battery-powered

to communicate more closely within the Group, so we

products are not only quiet and easy to use but is also

can take on board and address business environment

expected to deliver power on a par with engine-drivenchanges and market needs as an organization. If we canequipment. Battery charge duration is also good, which

achieve this, we can envisage the future and nurture ouris inspiring recognition of these products. Since our initial

responsiveness, and we will entrench this mindset goingentry phase in this domain, we have made good progress

forward.

and can see a clear path moving forward.

Fiscal 2017, ending March 31, 2017, will be anothertumultuous year, we believe. Although we will need toaddress changes flexibly as a matter of course, we must

Looking to the next 100
years, what aspects do you
deem necessary to achieve
further major advancement?

be careful not to be too sensitive and overreact whenconfronted with change. Rather, it is important to deliver
steady improvements in service levels as a manufacturer
based on long-term perspectives. Through cumulative
progress in this way, we can move forward, one step at atime, while nurturing small seedlings into huge thriving

Ideally, as a corporate entity, we are seeking to be atrees. By always fostering this potential to thrive, we willrobust company that is resilient against weak market

be prepared when opportunities arise.

conditions and not significantly impacted by the economic

The value of a company’s existence lies in its capacity

circumstances of certain regions. In our quest to become ato improve its provision of required services over the long

truly “strong company,” our first important task is to further

term. We will continue communicating closely with allraise our market share. Realizing a high market share will

stakeholders as we target steady future growth. To thisenable us to keep downturns caused by bad economic

end, we will seek to manufacture and offer products thatconditions to a minimum, and provide a basis to achievesatisfy end users, further enhance our industry-leading

steady growth and rapidly increase our market share evensales and after-sales service capabilities, and pass thefurther once economic conditions pick up. Indeed, theMakita brand that we inherited to the next generation.

best time to invest to broaden after-sales services and our

We encourage you, our stakeholders, to have highservice network is when nations and regions earmarked for

expectations for Makita’s renewed development, and webusiness development face difficult economic conditions.

look forward to your ongoing understanding and support.

At such times, we will deploy our sales capabilities—a key
Makita strength—and continue our marketing activities,
which are crucial for building a foundation to boost market
share.

7

Corporate Governanceto management. The Corporation introduced a corporate
officer system to facilitate prompt implementation of theOverview of the Corporate Governance StructureGroup strategy and strengthen the business execution

The Corporation has adopted an audit and supervisory board

structure, and strives to engage in flexible and efficientsystem. The Audit & Supervisory Board consists of four Audit &business operation and enhance corporate value. The Board

Supervisory Board members, three of whom are independentof Directors currently consists of fourteen directors, two ofoutside Audit & Supervisory Board members who are not andwhom are independent outside directors. The Corporation’s

have not been employed by the Corporation, including two

Articles of Incorporation stipulate that the number of

who serve in a part-time capacity. The two standing Audit &directors shall not exceed fifteen.

Supervisory Board members are able to audit the executionof duties by directors at all times. Two of the four Audit &Internal Audits and Audits by Audit & Supervisory

Supervisory Board members have considerable knowledge

Board Membersof finance and accounting. The Audit & Supervisory Board

As an independent organization in charge of themembers share information by means including the provisionCorporation’s internal audits, the Internal Audit Divisionof audit reports and reports on the Corporation’s condition

conducts the internal audits necessary to maintain theto the independent auditor in charge of the Corporation’ssoundness of the Corporation’s management.
With regard to audits by Audit & Supervisory Board

financial audits as needed. The Corporation’s Articles ofIncorporation stipulate that the number of Audit & Supervisory

members, in accordance with the audit policy and division

Board members shall not exceed five.

of duties established by the Audit & Supervisory Board, theThe Board of Directors determines basic policies,

four Audit & Supervisory Board members attend meetings ofmatters required by law, and important matters relating

the Board of Directors and other important meetings, receive

The following is a schematic diagram of Makita Group’s corporate governance structure.
General Meeting of Shareholders
Appointment / Dismissal

Appointment / Dismissal
Board of Directors
14 Directors including
2 Outside Directors
Appointment / Dismissal / Supervision

Audit

dit

Au

Appointment / Dismissal

Audit & Supervisory Board
4 Members including
3 Outside Members
Support
Audit Staff Office

ChairmanPresident
Corporate
Officer

ReportCorporate Officer, General Manager
of Administration Headquarters

Collaboration

ReportDisclosure Committee

Internal Audit Division
Audit

Corporate Divisions / Group Companies

8

Financial Statements Audit / Internal Control Audit

Independent Auditor

reports on operations from the directors, read importantas president and representative director of LIXIL Group

documents such as approval requests, and examine the status

Corporation, Japan’s leading comprehensive living andof operations and assets at the head office and principal places

housing solutions group, and as president and representativeof business. They request business reports from subsidiaries,

of LIXIL Corporation, and currently serves as advisor toand as necessary, visit subsidiaries to examine the status of

LIXIL Corporation. Mr. Sugino attends meetings of theoperations and assets. They also share information by receiving

Corporation’s Board of Directors and is responsible for

audit reports and reports on the Corporation’s condition fromstrengthening the management oversight function based

the independent auditor as needed.

on the experience and knowledge acquired throughout his
career as a management professional.

Relationships with the Outside Director and

There are no personal relationships or other interests

Outside Audit & Supervisory Board Members

between the Corporation and Mr. Sugino. Although theOutside Director Mr. Akiyoshi Morita formerly served

Makita Group sells products to LIXIL Corporation, for whom

successively as president and chairman and currently serves

Mr. Sugino previously worked, the transaction amountas advisor to Aichi Steel Corporation, a core company of thein the fiscal year ended March 31, 2016 was ¥5 million,

Toyota Group, one of the world’s leading corporate groups. Mr.

representing less than 0.01% of the consolidated net sales

Morita attends meetings of the Corporation’s Board of Directorsof the Makita Group. Although the Corporation holds sharesand is responsible for strengthening the management oversightof LIXIL Group Corporation, the amount on the consolidated

function based on experience and knowledge as a managementbalance sheets for the fiscal year ended March 31, 2016 wasprofessional cultivated throughout his career, offering advice¥161 million, which represents 0.03% of the total assets

and recommendations in accordance with that role.

of the Makita Group. Since there are no other personal

There are no personal relationships, capital relationships,

relationships or interests between the Corporation and LIXIL

or other interests between the Corporation and Mr.

Group Corporation, the Corporation deems Mr. Sugino

Morita. Although the Makita Group purchases parts fromindependent from the Corporation and the Corporation’s

Aichi Steel Corporation, where Mr. Morita was previously

management in charge of business execution. Mr. Sugino

employed, the transaction amount in the fiscal year ended

was elected as outside director at the General Meeting ofMarch 31, 2016 was ¥645 million, representing 0.2% of

Shareholders held on June 25, 2015, and has held office forthe consolidated net sales of the Corporation. There are noa year.

personal relationships, capital relationships, or other interests

Outside Audit & Supervisory Board member Mr. Fusahiro

between the Corporation and the Aichi Steel Group, andYamamoto is knowledgeable about corporate accounting in

the Corporation deems Mr. Morita independent from thehis capacity as a certified public accountant. He engages in

Corporation and the Corporation’s management in charge

appropriate management oversight and provides opinionsof business execution. Mr. Morita was elected as outsidefrom a professional point of view at meetings of the Board

director at the General Meeting of Shareholders held onof Directors and the Audit & Supervisory Board that heJune 25, 2013, and has held office for three years.

attends. Mr. Yamamoto was elected Audit & Supervisory

Outside Director Mr. Masahiro Sugino formerly served

Board member at the General Meeting of Shareholders held

9

on June 25, 2013 and has held office for three years.

& Supervisory Board members of the Corporation have their

Outside Audit & Supervisory Board members Messrs.

own specialist expertise. Their role is to audit the execution of

Akira Kodama and Shoji Inoue were elected as Audit &business by directors, from an impartial, external perspective

Supervisory Board members at the General Meeting ofwith no possibility of conflict of interest with ordinary

Shareholders held on June 28, 2016. Mr. Kodama has many

shareholders. To properly fulfill their roles, outside directors andyears of experience at financial institutions and professional

outside Audit & Supervisory Board members receive reports on

knowledge in finance. Mr. Inoue has professional knowledge

business performance, internal control systems, and the like at

and abundant experience as an attorney.

Board of Directors meetings, where they cooperate with each

Outside Audit & Supervisory Board members Messrs.

other and exchange opinions as necessary. When appointing

Akira Kodama and Fusahiro Yamamoto hold no stock in theoutside directors and outside Audit & Supervisory Board

Corporation and have no personal relationships, businessmembers, we refer to criteria on the independence of outside

relationships, capital relationships, or other interests with thedirectors determined by financial instruments exchanges.

Corporation. Outside Audit & Supervisory Board member

Accordingly, we believe our system for appointing outside

Mr. Shoji Inoue holds stock in the Corporation. He has nodirectors and outside Audit & Supervisory Board members isother personal relationships, business relationships, capital

appropriate.

relationships, or other interests with the Corporation.
The Corporation deems there is no risk of conflict ofinterest with ordinary shareholders and has designatedDirectors

outside Directors Akiyoshi Morita and Masahiro Sugino asMonthly salaries for directors is paid according to position

independent directors and outside Audit & Supervisory Boardand the like within limits for total monthly compensation

members Akira Kodama, Fusahiro Yamamoto, and Shojiprescribed by resolution of the General Meeting of

Inoue as independent Audit & Supervisory Board members in

Shareholders.

accordance with the regulations of the financial instruments

Director bonuses, which directors (excluding outside

exchanges. The Corporation has entered into agreements

directors) are eligible for, are linked to consolidated businesswith the abovementioned two outside directors and three

results with the aim of raising motivation to improveoutside Audit & Supervisory Board members, with respect tobusiness performance.

their liability for damages to the Corporation as prescribed

10

Policy on the Determination of Remuneration for

Seeking to increase morale and motivation to help

in Article 423, Paragraph 1, of the Companies Act, to limit

improve corporate value over the medium and long terms, thethe total amount of liabilities to the sum of the amounts

Corporation issues stock compensation-type stock options toprescribed in the items of Article 425, Paragraph 1, thereof.

directors (excluding outside directors) so that they share the

The role of the Corporation’s outside directors is torisks and rewards of stock price fluctuations with shareholders.

strengthen the efficacy of oversight by the Board of Directors

To ensure independence from management, the total

concerning the execution of duties by directors, from anamount of compensation for Audit & Supervisory Board

impartial, external perspective with no possibility of conflict ofmembers is fixed, with the specific amount determined ininterest with ordinary shareholders. Moreover, outside Audit

consultation with auditors.

Comments from an Outside Director
Utilizing my experience as president at management

assumes top priority among Makita’s business operations, and I canand Board of Directors’ meetings

envisage proliferation of good governance and implementation ofDuring my time as president of INAX Corporation and LIXIL

business policy initiatives.

Corporation, I instigated management meetings, attended bychairmen, presidents, and vice presidents of those companies,

Importance of not allowing global corporate strengths

who also served as representative directors. At these meetings,

to become corporate risks

we discussed large-scale investment proposals and made decisions

Makita’s strength lies in its robust financial position. Backed by ample

on key personnel and other important business policy matters. At

capital, the Corporation has established overseas sales bases andBoard of Directors’ meetings, attendees received reports from theinvested actively to attract customers. As a consequence, we arepresident on the items discussed at management meetings, as wellmoving steadily toward an overseas sales ratio of more than 80%

as explanations of important business policy decisions. In these ways,

and are further reinforcing our already-robust financial position.

we strove to ensure appropriate fulfillment of Board of Directors’

As domestic demand levels off, we are targeting the huge

responsibilities—overall management supervision and oversight, as

and growing global housing market as a key source of demand.

well as business policy—while maintaining transparency and effective

As a specialist manufacturer of power tools, we are concentrating

governance.

business resources on our core product segments and strengthening

At Makita’s Board of Directors’ meetings, as well, I will execute

our competitiveness through a policy emphasizing reliable productbusiness as an outside director and act with an emphasis on voicing

quality and safety. This gives us the greatest opportunity to maintain

opinions and questions, recognizing the importance of ensuring

future growth and expand market share. And through active

overall management transparency with respect to items discussed

interaction with our overseas sales and manufacturing operations,and other matters.

we will continue fostering global human resources and thus further
underpin our strengths as a global corporation.

Favorable impression of Makita’s stance prioritizing

At the same time, we must recognize the possibility that

harmonious coexistence with society and customer

business risks may emanate from overseas bases and subsidiaries

satisfactionthat are physically separated from the parent company. To ensure

At Makita, our top priority is to ensure sincere management thatthat Makita’s current strengths do not become corporate risks in theearns the trust of all shareholders, as well as customers in Japan andfuture, we need to maintain and control our overseas compliancefrom around the world and local communities, including those of ourframeworks and establish a unified domestic and overseas internalbusiness partners.

control system. From Makita’s perspective, this is an important

The first Management Policy of Makita’s Corporate Philosophy,

management priority that is“Strive to exist in harmony with society,” entails observing laws,

essential to tapping overseas

resisting the intervention of antisocial forces, and acting ethically. By

demand and ensuring

implementing this policy, Makita is working to spread its commitment

continuous growth—and I

to compliance throughout the Corporation—a stance that I applaud.

expect it will serve as a renewed

The second Management Policy under the Corporate Philosophy

strength in the future.

calls for us to be “a market- and customer-driven company.” This
forms the basis for growth in corporate revenue and the consistentrealization of appropriate earnings.
Based on the contents of reports made by various departments

Masahiro Sugino

at Board of Directors’ meetings, I perceive that customer satisfaction

Outside Director

11Directors, Audit & Supervisory Board Members
and Corporate Officers (as of June 28, 2016)
Directors and Audit & Supervisory Board Members
Directors

Audit & Supervisory Board Members* Chairman

Standing Audit & Supervisory Board Members

Masahiko Goto
* President
Shiro Hori
Director, Managing Corporate Officer
Tadayoshi Torii

Mitsuhiko Wakayama
Akira Kodama
Audit & Supervisory Board Members
Fusahiro Yamamoto(Certified Public Accountant)

Shoji Inoue(Attorney at Law)

Directors, Corporate Officers
Tomoyasu Kato

Messrs. Akira Kodama, Fusahiro Yamamoto, and Shoji Inoue
are Outside Audit & Supervisory Board Members.

General Manager of Research and Development Headquarters

Hisayoshi Niwa
General Manager of Quality Headquarters

Shinichiro Tomita
General Manager of Purchasing Headquarters

Tetsuhisa Kaneko
General Manager of Production Headquarters

Yoji Aoki
General Manager of Administration Headquarters

Tomoyuki Ota
Assistant General Manager of Research and Development Headquarters

Munetoshi Goto
General Manager of International Sales Headquarters

Takashi Tsuchiya

Takashi Omote
In charge of Central and South America Sales andPresident of Makita do Brasil Ferramentas Elétricas Ltda.

Yasushi Fukaya
In charge of Europe Sales

Tomoharu Yasuda
Assistant General Manager of Domestic Sales Headquarters:
Tokyo Area

Shinichi Sakamoto
In charge of Asia Sales and Managing Director of Makita China Sales

Atsunobu Iwakura

General Manager of Domestic Sales Headquarters

Assistant General Manager of Domestic Sales Headquarters:
Osaka Area

Masaki Yoshida

Hideki Shimazoe

Assistant General Manager of Production Headquarters(in charge of China Plant)

Outside Director
Akiyoshi Morita
Advisor of Aichi Steel Corporation
Outside Director of Showa Denko K.K.

Masahiro Sugino
Advisor of LIXIL Corporation*Denotes Representative Director.

12

Corporate Officers

Assistant General Manager of Domestic Sales Headquarters:
Nagoya Area and Direct Business Department

Reinforcing Our Global Sales
and After-sales Service Systems
To bring satisfaction to professional users around the world,plunged into severe recession due to the global financial

we have continued striving to reinforce our global sales andcrisis. Nevertheless, Makita maintained its unwavering

after-sales service systems.

customer-first sales policy and sought to build relationshipsof trust by reinforcing its after-sales services. We will use

In October 2015, Makita opened its Bolivia Branch inthe starting of the new operation as an opportunity toSanta Cruz, Bolivia. In Latin America, we are expanding

strengthen our sales and after-sales service systems in Latvia,

and upgrading our sales network, having started sales

where steady future growth is expected.

operations in seven countries, including Brazil and Mexico.
The Bolivia Branch, which serves as a branch of Makita
Peru S.A. (established in 2007), is our first sales base in thatnation, and Bolivia is the eighth Latin American country
in which Makita has a presence. It is politically stable andboasts steady economic growth, ranking in the top halfof Latin American countries. Moreover, Santa Cruz islocated in an industrial heartland where numerous foreign

In March 2016, Makita opened its sixth sales base incompanies have business operations. With shopping malls

Russia, a branch in the city of Krasnodar. Located on the eastand other large commercial facilities, the city has developed

coast of the Black Sea 1,500 kilometers south of Moscow,

significantly. Makita aims to step up sales activities andKrasnodar enjoys a temperate climate and has prospered

upgrade its after-sales service system in Bolivia, which is

as a key trading hub in Russia’s south since ancient times.

earmarked for future growth.

In the vicinity are well-known resort cities, such as Sochi,
which hosted the 2014 Winter Olympics; Anapa, renowned
for wine; and Astrakhan, famous for caviar. In Russia, with
its huge landmass, we will reinforce our distribution andafter-sales service systems in a regionally focused manner tofurther improve our customer services.

In January 2016, Makita opened a service center in
Riga, the capital of Latvia, its first sales base there. Latvia isa nation with a population of around two million. Locatedbetween Western Europe and Russia, it plays an importantrole as the gateway to Russian business. In 2009, Latvia

13New Products in Fiscal 2016

Robotic Cleaner (DRC200)
The DRC200 is a robotic cleaner developed jointly withbusiness premises in office buildings, as well as lobbies,

Sharp Corporation that runs on our 18V lithium-ion battery

shops, and warehouses.

and automatically collects dust and debris.
The DRC200 is a commercial-use robotic cleaner that

14With a single charge, it can clean a maximum surface
area of around 500m2 (at 5.0Ah), equivalent to 2.5 tennis

combines automated drive and sensing technologies

courts, and collect 2.5 liters of dust and debris. It is as

amassed by Sharp Corporation and battery systems for

simple to operate as a regular home-use cleaner yet delivers

power tools advanced by Makita. It is suitable for cleaningsuperior performance.

Cordless Backpack
Vacuum Cleaner (DVC260)
This cordless backpack-style cleaner is suitable for long,continuous cleaning operations, offering high cleaning
efficiency and dust-collection capacity compared withhandy-type cleaners.
The DVC260 uses two 18-volt lithium-ion batteries toprovide longer runtime and greater suction power thanhandy-type cleaners. With the mobility of "cordless" andbackpack configuration, it also provides a stable, lightweight
feel, so female workers can use with ease.

Expanding and Upgrading Our Lineup of
Cordless Tools Powered by 18V Lithium-ion Batteries
Key future initiatives include creating products based on thedevelopment theme of expanding and upgrading our lineupof cordless tools running on 18V lithium-ion batteries.
While we will continue emphasizing development of
power tools, the flagships of the lineup, we will also strive
to expand and upgrade our lineup to provide user-friendly,
comfortable, supportive work environments for people who
use our products.
Examples of innovative products launched include a fanjacket that keeps people cool in summer, a heated vest thatis warm but easy to move in even in winter, and a coffee
maker that can be used in the workplace. Our products,
which reflect the opinions of frontline workers, have been
globally acclaimed.
We will continue deploying the superior qualities of ourbattery systems to develop products that deliver new levelsof value to the market.

15

10-Year Summary
Yen in millions
2007

For the years ended March 31
Net Sales
Domestic
Overseas
Operating Income
Income Before Income Taxes
Net Income Attributable to Makita Corporation

2008

2009

2010

¥ 279,933
46,860233,073
48,17649,72436,971¥ 342,577
52,193
290,384
67,031
66,23746,043¥ 294,034
46,222
247,81250,07544,44333,286¥ 245,823
42,697203,126
30,39033,51822,258Net Cash Provided by Operating Activities
Net Cash Provided by (Used in) Investing Activities
Free Cash FlowsNet Cash Used in Financing Activities

32,360(27,276)
5,084(8,307)29,275(4,508)24,767(13,815)

22,178232
22,410(33,179)

57,126(17,668)
39,458(9,114)

Capital Expenditures
Depreciation and Amortization
R&D Costs

12,9808,773
5,460

15,036
8,871
5,922

17,0468,887
6,883

10,8378,308
6,782¥ 368,494
212,183
302,675
1,945¥ 386,467
230,699
316,498
2,632¥ 336,644
199,586
283,485
1,057¥ 349,839
211,336
297,207
929

¥

¥

¥

¥

As of March 31
Total Assets
Net Working Capital
Total Makita Corporation Shareholders’ Equity
Interest-Bearing Debt
Per Share Amounts：
Earnings per Share of Common Stock and per ADS: Basic
Total Shareholders’ Equity
Cash Dividends Applicable to the Year

Yen

Other data：
Ratio of Operating Income to Net Sales
Return on Equity (ROE)
Return on Assets (ROA)
Shareholders’ Equity Ratio
Average Number of Shares Outstanding
Number of Outstanding Shares Excluding Treasury Stock
Employees

257.3
2,106.3
74.0

17.2%
13.0%
10.6%
82.1%
143,706,789
143,701,279
9,062

320.3
2,201.3
97.0

19.6%
14.9%
12.2%
81.9%
143,749,824
143,773,625
10,436236.9
2,057.8
80.0

17.0%
11.1%
9.2%
84.2%
140,518,582
137,764,005
10,412161.6
2,157.4
52.0

12.4%
7.7%
6.5%
85.0%
137,762,051
137,760,402
10,328

1. The U.S. dollar amounts above and elsewhere in this report represent translations, for the convenience of the reader, at the rate of ¥112 to US$1.
2. Consolidated financial statements are prepared in accordance with United States Generally Accepted Accounting Principles.
3. Net income attributable to Makita Corporation per share is computed based on the average number of common stock outstanding during the term.
4. Amounts of less than ¥1 million have been rounded.

Net Sales (¥ millions)Operating Income (¥ millions)414,718 423,623
383,207309,630
295,71171,90564,67654,914
48,51645,366

’12

16

’13

’14

’15

’16

’12

’13

’14

’15

’16

Net Income Attributable to
Makita Corporation (¥ millions)

32,497’12

45,307
41,61538,45331,076

’13

’14

’15

’16

Total Makita Corporation
Shareholders’ Equity (¥ millions)
486,021 479,752
435,934
373,543
321,253

’12

’13

’14

’15

’16

U.S. Dollars
in thousands
2016

Yen in millions
2011

2012

2013

2014

2015

2016

¥ 272,630
46,065
226,565
41,90942,73029,905¥ 295,711
53,175242,536
48,516
46,96332,497¥ 309,630
56,555
253,075
45,36645,691
31,076¥ 383,207
66,019317,188
54,91456,97438,453¥ 414,718
67,740346,978
71,90568,39445,307¥ 423,623
68,445355,178
64,676
61,492
41,615$ 3,782,348
611,116
3,171,232
577,464
549,036
371,563

19,617(19,334)
283(7,355)

8,622(4,500)4,122(12,707)38,364(15,414)
22,950(10,650)

41,686(20,084)
21,602(7,365)35,894(20,096)
15,798(12,017)

34,188(6,573)
27,615(18,719)

305,250(58,688)
246,563(167,134)

9,742
7,557
7,283

13,481
7,237
7,603

11,481
7,542
8,396

11,4178,622
8,720

12,124
8,619
9,117

11,7699,284
9,593

105,080
82,89385,652¥ 372,507
219,270
307,149887¥ 383,256
223,045
321,2532,363¥ 440,974
266,950
373,543
1,703¥ 519,121
310,750
435,934
4,163¥ 575,328
358,245
486,0215,030¥ 558,024
362,675
479,752
2,225$ 4,982,357
3,238,170
4,283,500
19,866

¥

¥

¥

¥

283.3
3,211.6
91.0¥ 333.8
3,580.7
118.0¥ 306.6
3,534.5
101.0

14.3%
9.5%
8.0%
84.0%
135,740,827
135,737,626
12,804

17.3%
9.8%
8.3%
84.5%
135,736,215
135,734,868
13,835

15.3%
8.6%
7.3%
86.0%
135,734,118
135,733,261
14,784Yen

217.1
2,229.6
66.0

15.4%
9.9%
8.3%
82.5%
137,759,272
137,757,699
12,054236.8
2,366.5
72.0

16.4%
10.3%
8.6%
83.8%
137,244,683
135,750,518
12,563228.9
2,751.8
69.0

14.7%
8.9%
7.5%
84.7%
135,748,088
135,745,927
12,680U.S. Dollars

Free Cash Flows (¥ millions)
38,364

41,68635,894

13,481
34,188

11,481

27,615
7,603

22,95011,417

8,396

12,1248,720

11,769

9,117

9,593

15,798(4,500)(6,573)(15,414)

’12

2.74
31.56
0.90

Capital Expenditures R&D Costs (¥ millions)21,602
8,622
4,122

$

’13

(20,084)(20,096)’14’15

Cash flows from operating activities
Cash flows from investing activities’16

Free cash flows(Combined total of cash flows from operating and investing activities)

’12

’13

’14

Capital expenditures

’15

’16
R&D costs

17

Consolidated Balance Sheets
MAKITA CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAS OF MARCH 31, 2015 AND 2016
Yen in millions
2015

U.S. Dollars in thousands
2016

2016

ASSETS

18

CURRENT ASSETS:
Cash and cash equivalents
Time deposits
Short-term investments
Trade receivables—Notes
Trade receivables—Accounts
Less-Allowance for doubtful receivables
Inventories
Deferred income taxes
Prepaid expenses and other current assets
Total current assets¥ 94,529
15,28356,076
1,315
64,642(998)
175,186
6,296
16,782
429,111¥ 99,915
15,54548,263
1,079
64,309(1,173)
178,791
5,454
15,390427,573

PROPERTY, PLANT AND EQUIPMENT, AT COST:Land
Building and improvements
Machinery and equipment
Construction in progress
SubtotalLess-Accumulated depreciation and amortization
Total net property, plant and equipment

23,10496,20291,353
3,237
213,896(118,084)
95,812

22,436
94,70491,3652,662
211,167(118,344)
92,823200,321845,571815,759
23,7681,885,420(1,056,643)
828,777

INVESTMENTS AND OTHER ASSETS:
Investments
Goodwill
Other intangible assets, net
Deferred income taxes
Other assets
Total investments and other assets
Total assets

31,395
721
4,563
629
13,09750,405¥ 575,328

21,872
721
4,107
610
10,31837,628¥ 558,024

195,286
6,438
36,6705,446
92,125335,964$ 4,982,357$

892,098
138,795
430,920
9,634
574,188(10,473)
1,596,348
48,696
137,4113,817,616

Yen in millions
2015

U.S. Dollars in thousands
2016

2016

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

¥

4,647
25,1246,140
10,594
9,568
5,353
1,529
7,911
70,866¥

2,195
20,620
6,521
9,350
9,143
4,440
3,084
9,545
64,898$19,598184,107
58,22383,482
81,634
39,643
27,53685,223
579,446

383
3,701
9,521
1,272
14,87785,743

30
3,271
4,974
1,481
9,756
74,654268
29,20544,411
13,223
87,107
666,554

23,80523,805

212,545

45,421
5,669
399,874
22,84245,456
5,669
425,473(9,049)405,857
50,616
3,798,866(80,795)(11,590)
486,0213,564
489,585(11,602)479,7523,618
483,370(103,589)
4,283,500
32,3044,315,804¥ 575,328¥ 558,024$ 4,982,357

EQUITYMAKITA CORPORATION SHAREHOLDERS’ EQUITY:
Common stock, authorized - 496,000,000 shares
Issued and outstanding- 140,008,760 and 135,734,868 shares,
respectively in 2015
Issued and outstanding- 140,008,760 and 135,733,261 shares,
respectively in 2016
Additional paid-in capital
Legal reserve
Retained earnings
Accumulated other comprehensive income (loss)
Treasury stock, at cost - 4,273,892 shares in 2015
- 4,275,499 shares in 2016
Total Makita Corporation shareholders’ equity
NON-CONTROLLING INTEREST
Total equity
Total liabilities and equity

19Consolidated Statements of Income
MAKITA CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME
FOR THE YEARS ENDED MARCH 31, 2014, 2015 AND 2016
Yen in millions
2015

2014

NET SALES
Cost of sales
GROSS PROFIT
Selling, general, administrative and others, net
OPERATING INCOME
OTHER INCOME (EXPENSE):
Interest and dividend income
Interest expense
Exchange losses on foreign currency transactions,net
Realized gains (losses) on securities, net
Valuation losses on securities
Total other income (expense), net
INCOME BEFORE INCOME TAXES
Provision for income taxes : Current: Deferred
Total income tax expense
NET INCOME
Less-Net income attributable to the non-controllinginterest
NET INCOME ATTRIBUTABLE TO MAKITACORPORATIONPER SHARE OF COMMON STOCK AND ADS:
Earnings per share: Basic
Cash dividends per share paid for the year

U.S. Dollars in thousands
2016

2016

¥ 383,207
244,053
139,154
84,24054,914¥ 414,718
257,582
157,136
85,231
71,905¥ 423,623
270,121
153,50288,82664,676$ 3,782,348
2,411,795
1,370,554
793,089
577,464

2,326
(202)

2,639
(113)

2,468
(115)

22,036(1,027)(1,700)(6,480)(1,552)(13,857)

1,636

443

2,060
56,974
18,749(518)
18,231
38,743(3,511)
68,394
18,8893,824
22,71345,681

1,418(5,403)(3,184)
61,492
18,707812
19,51941,973

12,661(48,241)(28,429)
549,036
167,027
7,250
174,277
374,759

290

374

358

3,196

¥ 38,453¥ 45,307¥ 41,615¥ 333.8¥ 91.0¥ 306.6¥ 118.0

Yen¥ 283.3¥ 72.0$371,563

U.S. Dollars$ 2.738$ 1.05

Consolidated Statements of Comprehensive Income
MAKITA CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
FOR THE YEARS ENDED MARCH 31, 2014, 2015 AND 2016
Yen in millions
2015

2014

NET INCOME
OTHER COMPREHENSIVE INCOME (LOSS):
Foreign currency translation adjustment
Unrealized holding gains on available-forsale securities
Pension liability adjustment
Total other comprehensive income (loss)
COMPREHENSIVE INCOME
Less-Comprehensive income attributable to the noncontrolling interest
COMPREHENSIVE INCOME ATTRIBUTABLE TO
MAKITA CORPORATION

20

U.S. Dollars in thousands
2016

2016

¥ 38,743¥ 45,681¥ 41,973$ 374,759

30,204

14,660(26,304)(234,857)

2,687

1,267

(3,036)(27,107)

1,322
34,213
72,956

1,047
16,97462,655(2,678)(32,018)
9,955(23,911)(285,875)
88,884

746

199

231

2,063

¥ 72,210¥ 62,456¥ 9,724$ 86,821

Consolidated Statements of Changes in Equity
MAKITA CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY
FOR THE YEARS ENDED MARCH 31, 2014, 2015 AND 2016

Common stock

Additional paidin capital

Legal reserve

23,80545,421

5,669

Retainedearnings

Accumulated othercomprehensive
Treasury stockincome (loss)

Noncontrollinginterest

Total

Yen in millions

Balance as of April 1, 2013
Purchases and disposal of treasury stock
Cash dividends
Comprehensive income:Net income
Other comprehensive income

338,239(28,064)(11,527)(46)(9,773)38,45333,7572,789(25)

376,332(46)(9,798)290
456

38,74334,213

Balance as of March 31, 2014

¥ 23,805¥ 45,421¥ 5,669¥ 366,919

¥

5,693

¥ (11,573)¥ 3,510¥ 439,444

Balance as of April 1, 2014
Purchases and disposal of treasury stock
Cash dividends
Comprehensive income :Net income
Other comprehensive income¥ 23,805¥ 45,421¥ 5,669¥ 366,919

¥

5,693

¥ (11,573)(17)¥ 3,510(145)¥ 439,444(17)(12,497)

374
(175)

45,681
16,974

Balance as of March 31, 2015

¥ 23,805¥ 45,421¥ 5,669¥ 399,874¥ 22,842¥ (11,590)¥ 3,564¥ 489,585

Balance as of April 1, 2015
Purchases and disposal of treasury stock
Cash dividends
Comprehensive income:Net income
Other comprehensive income
Other income (loss)¥ 23,805¥ 45,421¥ 5,669¥ 399,874¥ 22,842¥ (11,590)(12)¥ 3,564¥ 489,585(12)(16,193)

Balance as of March 31, 2016

¥ 23,805¥ 45,456¥ 5,669¥ 425,473¥ (9,049)

Balance as of March 31, 2016 – US$ in thousands$ 212,545$ 405,857$ 50,616$ 3,798,866$ (80,795)(12,352)
45,307
17,149(16,016)(177)

41,615358(127)

41,973(32,018)35¥ (11,602)¥ 3,618¥ 483,370$ (103,589)$ 32,304$ 4,315,804(31,891)35

21

Consolidated Statements of Cash Flows
MAKITA CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWSFOR THE YEARS ENDED MARCH 31, 2014, 2015 AND 2016
Yen in millions
2015

2014

CASH FLOWS FROM OPERATING ACTIVITIES:Net income
Adjustments to reconcile net income to net cash provided by operating
activitiesDepreciation and amortization
Deferred income tax expense (benefit)
Realized (gains) losses on securities, net
Valuation losses on securities
Losses (gains) on disposal or sales of property, plant and equipment, net
Bad debt expense
Inventory write-downs
Impairment of goodwill and long-lived assets
Changes in assets and liabilitiesTrade receivables
Inventories
Trade notes and accounts payable and accrued expenses
Income taxes payable
Accrued retirement and termination benefits
Other, net
Net cash provided by operating activities
CASH FLOWS FROM INVESTING ACTIVITIES:Capital expenditures, including interest capitalized
Purchases of available-for-sale securities
Proceeds from sales of available-for-sale securities
Proceeds from maturities of available-for-sale securities
Proceeds from maturities of held-to-maturity securities
Proceeds from sales of property, plant and equipment
Investment in time deposits
Withdrawal of time deposits
Other, net
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:
Additions to (payments on) borrowings with original maturities of threemonths or less, net
Additions to borrowings with original maturities of more than threemonthsPayments on borrowings with original maturities of more than threemonthsAdditions to long-term indebtedness
Purchase of treasury stock, net
Cash dividends paid
Other, net
Net cash used in financing activities
EFFECT OF EXCHANGE RATE CHANGES ON CASH AND CASH
EQUIVALENTS
NET CHANGE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR
SUPPLEMENT DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid during the year for interest, net of amount capitalized
Cash paid during the year for income taxes

22

U.S. Dollars in thousands
2016

2016

¥ 38,743¥ 45,681¥ 41,973$ 374,759

8,622
(518)
(1,636)
(297)
176
1,632
1,239

8,619
3,824
(443)
(304)
122
2,366
310

9,284
812
(1,418)
5,403
(39)
374
1,849
-

82,893
7,250(12,661)
48,241(348)
3,339
16,509-(6,268)(1,480)1,441
907(1,323)448
41,686(1,270)(20,785)
1,903(4,828)(352)
1,051
35,894(3,526)(17,437)(2,821)177(1,253)810
34,188(31,482)(155,688)(25,188)1,580(11,188)
7,232
305,250(11,417)(19,650)
7,730
200
3,800
1,259
(16,549)
15,123(580)(20,084)(12,124)(15,682)
919
100
3,000
1,536
(19,885)
22,434(394)(20,096)(11,769)(9,997)
15,268
500
500
1,421
(36,169)
34,251(578)(6,573)(105,080)(89,259)
136,3214,464
4,464
12,688(322,938)
305,813(5,161)(58,688)

-

1,042

867

7,741

4,002

3,419

-

-

(1,611)(4,443)(3,556)(31,750)(46)(9,773)63(7,365)446(17)(12,352)(112)(12,017)(12)(16,016)(2)(18,719)(107)(143,000)(18)(167,134)

5,212

9,016

(3,510)(31,339)

19,44962,283¥ 81,732

12,797
81,732¥ 94,529

5,386
94,529¥ 99,915

48,089844,009$ 892,098

¥

¥

¥

195
17,841

152
23,717116
18,530$

1,036
165,446

Corporate Directory
ASIA
JAPAN
Makita Corporation
Head office
3-11-8, Sumiyoshi-cho,
Anjo, Aichi 446-8502
Phone: +81-(0)566-98-1711
Fax: +81-(0)566-98-6021
Okazaki plant
22-1, Watarijima, Nemunoki-cho,Okazaki, Aichi 444-0232
Phone: +81-(0)564-43-3111

CHINA
Makita (China) Co., Ltd.
Head office & plant
No. 288 South Huangpujiang Road,
Kunshan Development Zone, Jiangsu,
Postcode: 215335
Phone: +86-(0)512-57707710
Fax: +86-(0)512-57713623
Domestic sales department
318 South Wusongjiang Road, Kunshan,
Jiangsu, Postcode: 215300
Phone: +86-(0)512-5703-7500
Fax: +86-(0)512-5703-7118
Guangzhou sales branch
No.24 Building, No.26, Renhouzhi
Street, Dachongkou, Fangcun Avenue,
Liwan District, Guangzhou, Guangdong,
Postcode: 510370
Phone: +86-(0)20-87518872
Fax: +86-(0)20-87518873
Shanghai sales branch
1F, Building 33, No.888 Shuangbai Road,
Minhang District, Shanghai,
Postcode: 201108
Phone: +86-(0)21-54487198
Fax: +86-(0)21-62476732
Beijing sales branch
No.6 A Heyi Xili North Street,
Fengtai District, Beijing, Postcode: 100076
Phone: +86-(0)10-67983346
Fax: +86-(0)10-87898365
Chengdu sales branch
1F, Building 3, No.9, Wukedong San Road,
Wuhou District, Chengdu, Sichuan
Postcode: 610045
Phone: +86-(0)28-85366002
Fax: +86-(0)28-87337018
Shenyang sales branch
No.2, 10A, No.7 Street, Economic andTechnological Development Zone,
Shenyang, Liaoning, Postcode: 110141
Phone: +86-(0)24-22530648
Fax: +86-(0)24-22530170
Xian sales branch
1 & 2F, Xian Youzhi Science and Technology
Industrial Park NO.75 Mingguang Road,
Economic And Technological Development
Zone, Xian, Shanxi, Postcode: 710018
Phone: +86-(0)29-86223736
Fax: +86-(0)29-86229230

Changsha sales branch
1F, Ruixinjidi Research andDevelopment office building,
NO.166, Guyuan Road, Gaoxin District,
Changsha, Hunan. Postcode: 410205
Phone: +86-(0)731-8526-7792
Fax: +86-(0)731-8526-7791
Shijiazhuang sales branch
Room 104, Building 2, AnYuan Area C,
NO.111 Tangu South Street, Shijiazhuang,
Hebei, Postcode: 050026
Phone: +86-(0)311-8986-4089
Fax: +86-(0)311-8925-0381
Makita (Kunshan) Co., Ltd.
Nanzi Road, Kunshan Comprehensive Free
Trade Zone, Jiangsu, Postcode: 215301
Phone: +86-(0)512-57367367
Fax: +86-(0)512-57365575
Makita Power Tools (HK) Ltd.
3F, Grandtech Centre, 8 On Ping Street,
Shatin, N.T., Hong Kong
Phone: +852-2648-8683
Fax: +852-2648-5237
Service center
Macau
Makita (Taiwan) Ltd.
No.798, Sec.2, Wenhua 3rd Rd., Linkou
Dist., New Taipei City 24459, Taiwan
Phone: +886-(0)2-8601-9898
Fax: +886-(0)2-8601-2266

SINGAPORE
Makita Singapore Pte. Ltd.
7, Changi South Street 3, Singapore
486348Phone: +65-6546-8700
Fax: +65-6546-8711

INDIA
Makita Power Tools India Private
Ltd.
Unit II, Sy. No.93/3, 93/4,
Koralur Village, Kasaba Hobli,
Hoskote Taluk, Bangalore 560067
Phone: +91-(0)80-2205-8200
Fax: +91-(0)80-2854-9007

VIETNAM
Makita Vietnam Co., Ltd.
Head office
Unit 06, Block 16 18 L1-2, Street 3, VSIP II
Industrial Park, Hoa Phu Ward, Thu Dau
Mot City, Binh Duong Province, Vietnam
Phone: +84-650-362-8338
Fax: +84-650-362-8339
North branch
Unit 05, No. 1, Street 6, VSIP Bac Ninh
Integrated Township and Industrial Park,
Phu Chan Commune, Tu Son Town, Bac
Ninh Province
Phone: +84-241-376-5942
Fax: +84-241-376-5941
Service centers
Da Nang, Can Tho

THAILAND
Makita Manufacturing (Thailand)Co., Ltd.
219/1 Moo 6, Tambon Bowin, Amphur
Sriracha, Chonburi, 20230
Phone: +66-(0)3300-4750
Fax: +66-(0)3300-4747

MALAYSIA
Makita Power Tools (Malaysia) Sdn.
Bhd.
Lot 824, Jalan Subang 5, Subang Industrial
Area, 47500 Subang Jaya, Selangor,
Malaysia
Phone: +60-(0)3-8023-0824
Fax: +60-(0)3-8022-1448
Service center
Johor Bahru

CAMBODIA
Makita Singapore Pte. Ltd.
Cambodia branch
No. 432, St. 271, Sangkat Tumnup Teuk,
Khan Chamkarmon, Phnom Penh
Phone: +855-(0)23-994-071/2
Fax: +855-(0)23-994-073

AMERICAS
UNITED STATES
Makita U.S.A. Inc.
Corporate office14930 Northam Street, La Mirada,
CA 90638-5753, USA
Phone: +1-714-522-8088
Fax: +1-714-522-8133
Western regional (Los Angeles) office14930 Northam Street, La Mirada,
CA 90638-5753
Phone: +1-714-522-8088
Fax: +1-714-522-2437
Central regional (Chicago) office1450 Feehanville Drive, Mount Prospect,
IL 60056-6011
Phone: +1-847-297-3100
Fax: +1-847-297-1544
Eastern regional (Atlanta) office2660 Buford Highway, Buford,
GA 30518-6045
Phone: +1-770-476-8911
Fax: 866-521-3541 Free dial USA only
Factory service centers
Atlanta, Boston, Chicago, Dallas, Denver,
Florida, Houston, Las Vegas, Los Angeles,
New Jersey, Portland, San Francisco
Makita Corporation of America
2650 Buford Highway, Buford,
GA 30518-6045
Phone: +1-770-932-2901
Fax: +1-770-932-2905
Makita Latin America Inc.
10205 NW 108th Avenue, Suite 20,
Medley, FL 33178-2507
Phone: +1-305-882-0522
Fax: +1-305-882-0484

CANADA
Makita Canada Inc.
Head office1950 Forbes Street, Whitby,
ON L1N 7B7Phone: +1-905-571-2200
Fax: +1-905-433-4779
Western regional office11771 Hammersmith Way, Richmond,
BC V7A 5H6
Phone: +1-604-272-3104
Fax: +1-604-272-5416

Quebec and Atlantic regional office6389 Boul. Couture, St. Léonard,
Quebec H1P 3J5
Phone: +1-514-323-1223
Fax: +1-514-323-7708
Factory service centers
Burnaby (Vancouver), Calgary,
Dartmouth (Halifax), Edmonton,
Les Saules (Quebec City), London,
Mississauga (Toronto), Nepean (Ottawa),
Richmond (Vancouver), Saskatoon,
St. Laurent (Montreal),
St. Leonard (Montreal), Whitby, Winnipeg

MEXICO
Makita México, S.A. de C.V.
Head officeCamino Viejo A San Lorenzo Tepaltitlan(Jose Marti) No.227
Col. Tlacopa, Toluca, Estado De Mexico,
C.P. 50010
Phone: +52-722-237-3293
Fax: +52-722-237-3293
Factory service centers
Mexico City, Guadalajara, Monterrey,
Queretaro

PANAMA
Makita Latin America Inc.
Panama branch
Local Comercial No.4, Albrook Office
Center, calle Diego Dominguez, Albrook,
Panama City, Panama
Phone: 507-315-0305
Fax: 507-315-0651

BRAZIL
Makita do Brasil Ferramentas
Elétricas Ltda.
Head office & plant
Rodovia BR 376, Km 506,1 Bairro Industrial,
Ponta Grossa, PR CEP 84043-450
Phone: +55-(0)42-3302-2100
Fax: +55-(0)42-3302-2120
São Paulo sales office
Rua Makita Brasil, 200 Bairro dos
Alvarengas-São Bernardo do Campo-SP
CEP 09852-080
Phone: +55-(0)11-4392-2411/2199-2500
Fax: +55-(0)11-4392-2471
Salvador sales branch
Rua Andre Luiz R da Fonte, 491 Bairro
Pitangueiras, Lauro de Freitas, BA
CEP 42700-000
Phone: +55-(0)71-3252-0154
Fax: +55-(0)71-3252-0070
Curitiba sales branch
Rua Comendador Roseira,499 Bairro Prado Velho, Curitiba,
PR CEP 80215-210
Phone: +55-(0)41-3333-8070
Fax: +55-(0)41-3332-0734
Belém sales branch
Rodovia BR 316, Km 04 Loja 04-BairroÁguas Lindas, Ananindeua / PA
CEP 67020-000
Phone: +55-(0)91-3237-7186
Service centersSão Paulo, Rio de Janeiro, Recife,
Belo Horizonte, Rio Grande do Sul

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ARGENTINA
Makita Herramientas Eléctricas deArgentina S.A.
Lisandro de la Torre 1246, Parque
Industrial Pilarica, Fatima, Pilar Provincia de
Buenos Aires, CP1629
Phone: +54 (230)444-1100
Fax: +54 (230)444-1105

CHILE
Makita Chile Comercial Ltda.
Head office
Av. Lo Boza 120-B Modulo 1,
Pudahuel, Santiago, CP 9030971
Phone: +56-(0)2-2540-0400
Fax: +56(0)22-540-0436
Factory service centers
Santiago, Temuco

PERU
Makita Peru S.A.
Av. Argentina 3119, Zona B, Lima, Peru
Phone: +51-(1)-562-0220
Fax: +51-(1)-561-0099

BOLIVIA
Makita Peru S.A.
Bolivia branch
La Av. Japón UV. ET3, Lote3 de la ciudad
de Santa Cruz, Bolivia
Phone: +59-(1)-3325-7757

COLOMBIA
Makita Colombia, S.A.
Kilometro 7 Autopista Bogota-Medillin,
Centro Empresarial Celta Trade Park
Lote 123 Bodega 3 Funza-Cundinamarca,
Colombia
Phone: +57-1-896-6199
Fax: +57-1-896-6367

EUROPEUNITED KINGDOM
Makita (U.K.) Ltd.
Michigan Drive, Tongwell,
Milton Keynes, Bucks MK15 8JD
Phone: +44-(0)1908-211678
Fax: +44-(0)1908-211400

Nantes office
Le Pan Loup, 44220 Couéron
Phone: +33-(0)2-5177-8977
Fax: +33-(0)2-4063-8376
Bordeaux office
137, Rue de la Croix-de-Monjous,33170 Gradignan
Phone: +33-(0)5-5796-5270
Fax: +33-(0)5-5796-5275
Nord office
Village d’Entreprises, 51, Rue Trémière,
59650 Villeneuve d’Ascq
Phone: +33-(0)3-2059-7020
Fax: +33-(0)3-2047-2220
Dijon office
5, Rue Edmond Voisenet,
21000 Dijon
Phone: +33-(0)3-8054-0880
Fax: +33-(0)3-8054-0881
Toulouse office
15, Rue de Boudeville, Z.I. de Thibaud,
31104 Toulouse
Phone: +33-(0)5-6143-2200
Fax: +33-(0)5-6143-2201

SPAIN
Makita, S.A.
C/ Juan de la Cierva, 7-15,
28820 Coslada (Madrid)
Phone: +34-91-671-1262
Fax: +34-91-671-8293

PORTUGAL
Makita Ferramentas Electricas,
Sociedade Unipessoal, Lda.
Centro empresarial de Alverca,
Armazém C2 Vale das Ervas
2615-187 Alverca do Ribatejo
Phone: +351-219-936-750
Fax: +351-219-574-982

ITALY
Makita S.p.A.
Via Sempione 269/A,
20028 San Vittore Olona (MI)Phone: +39-0331-524111
Fax: +39-0331-420285

GREECE

Makita International Europe Ltd.
Michigan Drive, Tongwell,
Milton Keynes, Bucks MK15 8JD
Phone: +44-(0)1908-211678
Fax: +44-(0)1908-211500

Makita Hellas S.A.
Tatoiou 34, Acharnes,
ATTIKI PC13677
Phone: +30-210-8071241
Fax: +30-210-8072245

Makita Manufacturing Europe Ltd.
Hortonwood 7, Telford,
Shropshire TF1 7YX
Phone: +44-(0)1952-677688
Fax: +44-(0)1952-677678

FINLAND
Makita Oy
Teilimäki 4 FIN-01530 Vantaa, Finland
Phone: +358-(0)9-857-880
Fax: +358-(0)9-857-88211

FRANCEESTONIA

Makita France SAS
Head office37, avenue Graham Bell,ZAC Léonard de Vinci,
Bussy Saint-Georges,
77607 Marne-la-Vallée Cedex 3
Phone: +33-(0)1-6094-6400
Fax: +33-(0)1-6094-6380

Makita Oy Estonian branch
Estonian office
Piirimäe 13, 76406 Saku vald,
Harjumaa maakond
Phone: +372-6-510-380
Fax: +372-6-510-399

NORWAY
Makita Norway
Løxaveien 11A N-1351 Rud Norway
Phone: +47 99 40 76 00
Fax: +47 67 13 38 83

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SWEDENCZECH REPUBLIC

Makita Sweden
Bergkällavägen 36 B192 79
Sollentuna, Sweden
Phone: +46-8-505-819-00
Fax: +46-8-505-819-69

Makita, spol. s r.o.
Kaštanová 555/125d, 620 00 Brno
Phone: +420-543-216-944
Fax: +420-543-216-946

THE NETHERLANDS
Makita Nederland B.V.
Park Forum 1101 5657HK Eindhoven
Phone: +31-(0)40-206-4040
Fax: +31-(0)40-206-4096

Makita s.r.oJegorovova 35
974 01 Banská Bystrica
Phone: +421-(0)48-4161-772
Fax: +421-(0)48-4161-769

BELGIUM

HUNGARY

S.A. Makita N.V.
Jan-Baptist Vinkstraat 2 3070 Kortenberg
Phone: +32-(0)2-257-1840
Fax: +32-(0)2-253-0101

Makita Elektromos
Kisgépértékesítö Kft.
8000, Székesfehérvár, Takarodó út 2
Phone: +36-22-507-472
Fax: +36-22-507-484

GERMANY
Makita Werkzeug G.m.b.H
Head office
Makita Platz 1, 40885 Ratingen
Phone: +49 (0)2102 1004-0
Fax: +49 (0) 2102 1004-128
Makita Engineering Germany
G.m.b.H
Jenfelder Strasse 38, 22045 Hamburg
Phone: +49-(0)40-66986-0
Fax: +49-(0)40-66986-352

DENMARK
Makita Elværktøj Danmark
Denmark office
Erhvervsbyvej 14, 8700 Horsens
Phone: +45-76-254400
Fax: +45-76-254401

SWITZERLAND
Makita SA
Chemin du Vuasset 7
CH-1028 Preverenges
Phone: +41-(0)21-811-5656
Fax: +41-(0)21-811-5678

AUSTRIA
Makita Werkzeug
Gesellschaft m.b.H.
Kolpingstraße 13, A-1230 Wien
Phone: +43-(1)-6162730-0
Fax: +43-(1)-6162730-13

SLOVENIA
MAKITA d.o.o.
Brnčičeva 49,
SI-1231 Ljubljana-Črnuče
Phone: +386(0)-590-83-600
Fax: +386(0)-590-83-601

UKRAINE
Makita Ukraine LLC
18A, Marka Vovchka str., Kyiv, 04073
Phone: +38(044)494-23-70/+38(044)494-23-71
Fax: +38(044)494-23-73

POLAND
Makita Sp. z o.o.
ul. Bestwi ska 103
43-346 Bielsko-Biała
Phone: +48-(0)33-484-0200
Fax: +48-(0)33-818-4059

SLOVAKIAROMANIA
Makita Romania S.R.L.
Sos. Bucuresti–Urziceni nr.31 (EXPO
MARKET DORALY, Pavilion R) Com.
Afumati / ILFOV, 077010
Phone: +40-21-351-1382/+40-21-351-1387
Fax: +40-21-312-5495
SC Makita EU SRL
Blvd. I.C. Bratianu, nr.164,
Comuna Branesti, jud. ILFOV, ROMANIA
077030Phone: +40-21-310-7675
Fax: +40-21-200-0219

BULGARIA
Makita Bulgaria EOOD
Okolovrasten Pat (circle road), No.373,
Sofia 1186, Bulgaria
Phone: +0359-2-921-0551
Fax: +0359-2-921-0550

RUSSIA
Makita LLC
Permskaya str. 1, build. 1, Moscow,
107143 Moscow, Russia
Phone: +7-495-915-88-66
Fax: +7-495-916-57-31
St. Petersburg branch of
Makita LLC
Obukhovskoy oborony pr. 70 bld. 3A
192029, St. Petersburg
Phone: +7-812-703-0210
Fax: +7-812-703-0213
Samara branch of Makita LLC
3 Mirnaya str., Samara,
Russian Federation, 443035
Phone: +7-846-202-90-50
Makita Oy Vladivostok
Representative office
22, St. Makovskogo,
Vladivostok 690041, Primorsky Region
Phone: +7-4232-375-984
Fax: +7-4232-375-985
MAKITA LLC, Novosibirsk branch
Dargomyzhskogo street 15,
Novosibirsk 630047, Russia
Phone:+7-383-209-18-19
Fax:+7-383-209-18-19

Corporate Data
MIDDLE EAST & AFRICA
UNITED ARAB EMIRATES
Makita Gulf FZE
P.O. Box 17133, Jebel Ali Free Zone,
Dubai, UAE
Phone: +971-(0)4-8860-804
Fax: +971-(0)4-8860-805

KAZAKHSTAN
Makita Kazakhstan LLP
39, St. Kommunalnaya, Almaty, 050050
Phone: +7-727-233-0827
Fax: +7-727-382-7921

MOROCCOMakita Africa s.a.r.l.a.u.
TANGER MED FREE ZONE
P.O. BOX 203, Ksar Sghir,
90150 Wilaya de Tanger, KINGDOM OF MOROCCO
Phone: +212-(0)-539-93-0851
Fax: +212-(0)-539-33-9831

OCEANIA
AUSTRALIA
Makita (Australia) Pty. Ltd.
Head office
2 Litton Close, Pemulwuy, NSW 2145
Phone: +61-(0)2-9839-1200
Fax: +61-(0)2-9839-1201
Hobart office
32a Chapel Street Glenorchy,
TAS 7010
Phone: +61-(0)3-6274-1533/1300 361 690
Fax: +61-(0)3-6274-1777/1300 361 770
Perth office535-537 Abernethy Road, Kewdale,
WA 6105
Phone: +61-(0)8-9360-8900
Fax: +61-(0)8-9360-8999

Makita Corporation
Head Office

Common Stock Listings

3-11-8, Sumiyoshi-cho, Anjo,
Aichi 446-8502, Japan
Phone: +81-(0)566-98-1711
Fax: +81-(0)566-98-6021

Tokyo and Nagoya stock exchanges

Okazaki Plant
22-1, Watarijima, Nemunoki-cho,Okazaki, Aichi 444-0232
Phone: +81-(0)564-43-3111

Transfer Agent of Common
Stock
Sumitomo Mitsui Trust Bank, Limited
4-1, Marunouchi 1-chome, Chiyoda-ku,
Tokyo 100-8233, Japan

American Depositary Receipts

Domestic Sales Offices

Symbol: MKTAYCUSIP: 560877300

Tokyo, Nagoya, Osaka, Sapporo, Sendai,
Niigata, Utsunomiya, Saitama, Chiba,
Yokohama, Shizuoka, Gifu, Kanazawa,
Kyoto, Hyogo, Hiroshima, Takamatsu,
Fukuoka, Kumamoto and other major cities

Depositary, Transfer Agent,and Registrar for American
Depositary Receipts

Date of Founding
March 21, 1915

Paid-in Capital

BNY Mellon Depositary Receipts
101 Barclays Street,
New York, NY 10286, USA
Toll Free Number for Domestic Calls:
1-888-BNY-ADRS
1-866-234-6936¥24,206 million

Number for International Calls:+1-201-680-6825

Number of Shares Issued

Email:
shrrelations@bnymellon.com

NEW ZEALAND

140,008,760 shares,
including 4,275,499 of treasury stock(As of March 31, 2016)

Makita (New Zealand) Ltd.
15 Orbit Drive, Mairangi Bay, Auckland, New ZealandPhone: +64-(0)9-479-8250
Fax: +64-(0)9-479-8259

Independent Registered
Public Accounting Firm

Website:http://www.adrbnymellon.com/

Websitehttp://www.makita.biz/ir/

KPMG AZSA LLC

Forward-Looking Statements
This report 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,demand for 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,
these statements should not be interpreted as representation that such objectives will be achieved.

25