Fiscal 2018 Highlights

Contents
Fiscal 2018 Highlights

1

Interview: To Our Stakeholders

4

Special Feature:
Makita's Value Chain

8

Corporate Governance12

Directors, Audit & Supervisory
Board Members a ndCorporate Officers

16

5-Year Summary

17

Consolidated Financial
Statements

18

Corporate Directory

23

Corporate Data

25

Share of Net Sales
Power Tools
Gardening Equipment, Household andOther Products
Parts, Repairs and Accessories

Share of Net Sales(% / FY2018)

16.4
20.9

ProfileMakita Corporation was founded in 1915 as an electricmotor sales and repair company. In 1958, it became the first

62.7

Net Sales(Yen in millions)company in Japan to manufacture and sell portable electric
planers. Over the half century since, Makita has solidified its

78,058

position as a manufacturer of power tools. Today, Makita
continues its quest to provide products and services that help
people create comfortable living environments.

67,45867,711

79,41377,501

276,752

269,787

299,264

2016

2017

2018

Vision99,976

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

Power Tools
Share of Net Sales(FY2018)

62.7%

Net Sales¥299,264 Mil.

Gardening Equipment,
Household and Other Products
Share of Net Sales(FY2018)

20.9 %Net Sales¥99,976 Mil.

Parts, Repairs and Accessories
Share of Net Sales

Net Sales(FY2018)

16.4 %¥78,058 Mil.
01

Key Figures

Net Sales

Operating Income¥477,298Mil. ¥ 79,762 Mil.

Operating Margin

16.7%

15.0% UP

27.5% UP

1.6 pt UP

Overseas
Net Sales Ratio

Number of
Employees

Production
Output82.7%

16,137

R&D Costs

CapitalExpenditures

ROE¥10,894 Mil.

¥14,149 Mil.

10.4 %

02 MAKITA Corporation Annual Report 2018

(Consolidated)

31.11 Mil.

(units)Sales by Region

EUROPENORTH AMERICANet Sales

Net Sales¥ 73,873 Mil.

¥ 202,054 Mil.
19.6 % UP(% / FY2018)

15.7

ASIA (excluding Japan)
Net Sales¥ 44,094 Mil.

11.7% UP

Share of Net Sales

9.2

17.3
15.5

JAPAN

42.3

Net Sales¥ 82,575 Mil.

10.0 % UP

OTHER REGIONSNet Sales¥ 74,702 Mil.
14.2%

UP

11.0 % UP

Central andSouth America
Net Sales

Oceania
Net Sales

The Middle East
and Africa
Net Sales¥ 27,922 Mil. ¥ 31,284Mil. ¥15,496Mil.
20.8% UP

24.7%UP

9.9% DOWN
DOWN

03Interview: To Our Stakeholders

Munetoshi Goto
President,
Representative Director

As a global supplier of a comprehensive range of power tools that assist people increating homes and living environments, Makita aims to become No. 1 in the world
by exploring various possibilities and embracing new challenges based on longterm perspectives. Even in turbulent world markets, we will align ourselves closelywith markets and customers around the world and listen to the voices of people
on the front lines, deploying our strengths to respond flexibly to the changing
times. We will continue actively investing to maintain and strengthen our sales,
product development, and manufacturing strengths, which form the source of ourcompetitiveness. At the same time, we will enhance our brand power as we strive to
become a “strong company” in the next generation.
04 MAKITA Corporation Annual Report 2018

Masahiko Goto
Chairman,
Representative Director

Please describe the highlights offiscal 2018.
In fiscal 2018, ended March 31, 2018, healthy economic
conditions in Germany and the United States provided aboost to global capital flows, while emerging markets wereenergized by increases in prices of resources. Against thisfavorable global economic backdrop, the Makita Group
enjoyed solid growth, posting consolidated net sales of¥477.3 billion, up 15.0% year on year. During the year,
our new lithium-ion battery products and gardening
equipment—two categories of particular focus—were
well received in various markets. Our plants’ ability toeffectively address vibrant demand supported our businessperformance. It was a good year, buoyed by a positive cycleof development, production, sales, and services.

By region, we performed well in Oceania, Western
Europe, and Eastern Europe. In the face of rising personnel
costs, customers sought to enhance work efficiency,
resulting in healthy sales of highly functional products.
Moreover, surging prices of copper and other mineralrelated resources led to an upturn in Latin America, which
had stagnated until the previous fiscal year. In Japan,
we again performed strongly, as we did the previous
year, thanks mainly to new products. During the year,
we conducted a nationwide campaign for our gardening
equipment, and the injection of new merchandise led tosigns of market progress and stimulation, which werepleasing developments.

05

enabling us to prevent simple accidents caused by cords,
such as tripping, falling, and electricity leakage, thusincreasing the safety of workplace environments.
Makita also offers products that combine recharging
technologies and dust-collection technologies, thus
complying with particulate-related measures demanded byrecent occupational health and safety requirements. These
products greatly contribute to work-site environmental
improvement while enhancing work efficiency.
To raise the market share of sales, it is essential that
we make products the market wants. In addition to theconventional need for convenience and efficiency, wedevelop and offer products that closely reflect workers’
needs for safety and health, such as dust collectors. We
believe this will help increase market share in each region.
We cannot say we are contributing to society unless we
can help resolve environmental issues while maintaining andimproving customer productivity. In that sense, I feel we aretaking the first steps in the right direction. We will continue
targeting further improvements in safety performance,
environmental performance, and work performance. At
the same time, we will continue responding to customers’
solutions-related needs to grow our business over the
medium and long terms.

Please tell us about future
demand trends and your businessstrategies in response.
First of all, we expect that demand for offerings thatenhance work-site productivity will increase. This will help
resolve labor shortages, which is an issue for society. Suchtrends will continue over the medium and long terms, bothin advanced and emerging nations.
Products that help enhance work-site productivity
not only raise work efficiency, but also allow work to be
performed without stopping on-site activities. Such products
improve workplace environments and enable work to bedone more safely. At the same time, they help reduce theimpact on the natural environment, which is also important.
At Makita, batteries and recharging technologies arepillars for solving problems. We believe that our efforts to
replace engine-powered products with battery-powered
products will help eliminate exhaust gas from work sites andthe need for fuel, thus greatly contributing to environmental
issues. Battery-powered products also reduce noise andvibration, effects that help improve the environment aroundworkplaces and alleviate the physical impact on users.
By expanding our range of battery-powered products,
we will facilitate the transition to cordless workplaces,

06 MAKITA Corporation Annual Report 2018

Sales of gardening equipment,
which is positioned as a futurebusiness pillar alongside power
tools and a sector we are targetingfor medium- to long-term sales
growth, increased steadily.
Since April 2017, we have conducted a “Zero Emission
Campaign” to convey in an easy-to-understand way thefeatures of our cordless gardening equipment that we focus
on. Through this campaign, we hope to increase sales in all
regions of the world. I feel that market recognition of ourcordless gardening equipment is rising steadily.
At present, sales of our gardening equipment are very
low. Certainly, turning that segment into a business pillar
on a par with power tools is a major challenge. In light ofoverall market scale, however, I believe it can be achieved.
That said, we cannot maintain our current level of service
quality with our current system if we double our sales
target by expanding our business on a large-market scale.

It will take time to establish a system to support that levellaunch worldwide initiatives tailored to the attributes ofof service. To develop our second business pillar, we needeach region. Increasing the quantity of products requires
providing more services, and for this reason, I believe it will

to take on the huge gardening equipment market. We must
prepare meticulously to make the right responses. This is
the important message I wish to convey to our employeeswith a phrase such as “second business pillar.”Over the past one or two years, we have built a lineupof cordless gardening equipment with equal or better
performance than engine-powered products. Replacing
engine-powered offerings with cordless ones will require
new levels of technological development in numerous fields,
so we must continue forging ahead for the long term.
As the automobile industry transitions to electric vehicles(EVs), we see faster and faster advances in recharging
technologies, including innovations in battery materials.
Promoting further technological development while firmly
grasping these changes and technological innovations willbe the key to expanding our business. If we can use newtechnologies to increase customer convenience, we mustembrace those same technologies and incorporate them inour products. This is paramount, I believe.

Please tell us about initiatives
planned for fiscal 2019.
On the product development side, we will continue
expanding our range of cordless offerings, although our
lineup includes many products that are not battery-powered.
As for recharging technologies, we are making steadyprogress year by year. Even in fields previously regarded astechnically difficult, I believe our recharging technologies
will make further inroads. We will also continue focusing
on developing gardening equipment and dust-collection
products.
With respect to production, we will continue utilizing
robot technologies. Rather than simply buying andintroducing robots, we will continue devising ways to hone
our workplace know-how to see what kinds of robots are
best for our company. In addition to increased productionof gardening equipment, we anticipate growing demand invarious regions for technologically advanced, value-added
brushless motors. In response, we will establish massproduction systems in each region, including expansion of
our production facilities in China and Romania.
On the sales front, we will continue implementing
our campaign for cordless gardening equipment. I hopethat fiscal 2019 will be a year in which more and more
people appreciate the merits of our products. We will

be important to improve service-related productivity andlogistics, including use of artificial intelligence (AI).

Please give your outlook for fiscal
2019, as well as a concluding
message to stakeholders.
In addition to emphasizing cordless products, wewill continue increasing revenue in each region while
accelerating efforts related to production, logistics, andservices.
Along with foreign exchange factors, there is a highpossibility that our earnings will be affected by risingprocurement costs stemming from ongoing shortagesof labor and materials. We also need to make moreinvestments in technological development, especially in thegardening equipment category. In addition, we will invest in
expanding and upgrading production and sales operations.
Altogether, in fiscal 2019, we plan to make the largest
investments in our history. We ask for your understanding
and support for these future-oriented initiatives.
As we forge ahead toward long-term advancement, weare currently in a very privileged position in which we caneffectively address issues that need to be tackled in the
future. This is due to the support and protection of ourinvestors and shareholders and their long-term perspectives,
as well as the support of customers, business partners,
local communities, and employees in regions around theworld—for which we are deeply thankful. In this businessenvironment, many companies cannot do the things theywant to do, or they refrain from acting unless desired
outcomes can be achieved in a single year. By contrast,
Makita firmly believes that doing what should be done, withsteady, long-term advancement in mind, is the key to solid
growth. Thanks to the gift of everyone’s support, we areable to forge such a path.
We intend to manage our business with the aim of achieving
mutual growth with all stakeholders over the long term, and welook forward to everyone’s ongoing support.

07

Special Feature: Makita’s Value Chain
Makita is committed to a management policy that “strives to exist in harmony with society,” “values its customers,” “ismanaged in a consistent and proactive manner,” and “values a stalwart corporate culture, encouraging all individuals
to perform to their highest level.” Accordingly, we will deliver solutions to various challenges facing society—including
global environmental issues, natural disasters, and labor shortages—and help build a sustainable society through ourbusiness activities, thus achieving further corporate growth.

Makita’s Value Chain
Product development
Cordless products that improve both work efficiency andthe environment●●

Pioneers in lithium-ion battery tools
Makita recognized as “synonymous with cordless tools”

P09>>

Safe, efficient, environmentally friendly worksites thanks to cordless equipment
Replacing AC power-cord tools and engine-powered products

Global production
Production system tailored to regional needs and risks●

Providing plants around the world with the latest production technologies fromour Okazaki Plant in Japan and mass-production technologies and know-how from
our China Plant●

Cumulative improvements at the worksite level lead to advancement of
manufacturing worldwide

P10>>

Sales and service network
Building a sales and service network with close ties to regions andcustomers●

No. 1 sales and after-sales service system in the industry●

Directly managed operations in 115 locations in Japan and more than 50 countries
around the world

P11>>“As a global supplier of power tools used in building homes and in everyday life, Makita is aiming to conduct a wide range ofenvironmental protection activities, taking into consideration biodiversity, to build an affluent society for future generations.” This is
our basic environmental principle, which we will strive to fulfill through our day-to-day activities.

08 MAKITA Corporation Annual Report 2018

Product development
Leveraging industry-leading rechargecontrol and motor technologies topromote cordless environments
In 2005, we led the industry in incorporating lithium-ion
batteries into our power tools. Since then, we have beendeveloping products that take advantage of industry-leading
recharge-control and motor technologies. We will continue
providing society with products that make worksites aroundthe world safer, more efficient, and more comfortable.

Product development: Makita’s strengths and new initiatives●

Faster-charging and longer-life batteries thanks to originalrecharge-control technologies●

Industry’s best lineup, with wide-ranging product categories

Making engine-powered products
cordless, and developing products otherthan large tools and equipment

Solving worksite issues with advances in cordlesstechnologies●

Addressing worksite labor shortages with good work efficiency and ease of use●

Replacing engine-powered tools to eliminate exhaust gas and reduce noise andvibration●

Helping prevent worksite accidents, such as tripping over power cords●

Contributing to work in places with poor access to stable power supplies

COLUMN
Expanding problem-solving domains by adapting recharging technologies to gardening tools as well

“Shifting from engine-powered to battery-powered” gardening equipment
We are focusing on developing cordless gardening equipment as apillar of our business, after power tools. Battery-powered gardening
equipment does not emit exhaust gas during use and significantly
reduces noise and vibration compared with engine-poweredmodels. This contributes greatly to improving the environment
around worksites and alleviating the physical impact on users.
Such equipment is also lightweight, easy to start, and easy to use,even for elderly people and women. Deploying battery and motor
technologies amassed through our involvement in power tools, wewill accelerate the “shift from engine-powered to battery-powered”
equipment through proactive R&D and increased sales. In theprocess, we will help realize a zero-emissions society in the future.

09

Global production
Pursuing better manufacturing
around the world
In addition to Japan and China, we manufacture at andship from plants in the United States, United Kingdom,
Brazil, Germany, Romania, and Thailand, for a total of eightnations. Having production bases in major regions of theworld is a key strength that enables us to make and supply
products in a timely manner according to regional demand.
Moreover, by utilizing robots and making constant frontline
improvements, we do not become dependent on intuitive or
favored experiences of individual employees in any regionof the world. We are working to build a system that canalways efficiently supply reliable products.

Global production: Makita’s strengths and new initiatives●

Establishing plants close to markets to address regional demand ina timely manner●

Addressing foreign exchange factors, natural disasters, geopoliticalrisks, etc.

●

Two “mother plants,” one each in Japan and China, develop
manufacturing and mass-production technologies for our otherplantsExpansion of plants in China andRomania to prepare for increased
production of cordless tools andgardening equipment
Utilizing IoT and robotics to improve
product quality and productivity

COLUMN

Role of “mother plants” in enhancing productivity and stabilizing quality
As we increase production, the need to enhance manufacturing
efficiency and ensure reliable product quality at our plants is a priority
we cannot ignore. In addition to utilizing the latest technologies, suchas IoT and robotics, Makita shares know-how accumulated on thefront lines with its various plants.
Among them, our Okazaki Plant and the China Plant play majorroles. The Okazaki Plant embraces state-of-the-art production
technologies and also develops robots in-house that meet therequirements of Makita’s production sites. The China Plant plays acentral role in spreading ingenuity and know-how for mass production
to other Makita Group plants, drawing on the achievements andexperiences gained by handling more than 60% of the Group’s
production.
The China Plant reached cumulative production of 200 million units

10 MAKITA Corporation Annual Report 2018

Sales and service network
Delivering products and services
directly to customers all over the world
At construction sites, where heavy work is done every
day, it is important that equipment failures do not lead
to work stoppages. With a sales policy emphasizing close
ties with regions and customers, we aim to build sales andservice networks all over the world and develop trust-based
relationships with customers through swift and meticulous
after-sales services.

Sales and services: Makita’s strengths and new initiatives●

Industry-leading sales and service network brings meticulous
after-sales services●

Building fast-acting logistics and repair systems to help maintainwork efficiency and productivity at worksites around the world

Feedback on our products and services gained from customers and● users worldwide enables us to plan new products that improve
worksite productivity and reflect users’ needs

Aggressive PR activities emphasizing thebenefits of cordless products
Using AI and enhancing logistics tofurther improve our service capabilities

COLUMN
Always “supporting,” not “being supported”

Using our supply chain to build relationships of coexistence and prosperity
Restoration-related demand following the Ise Bay typhoon of 1959 gave
Makita the opportunity to develop as a specialist manufacturer of electric
power tools. Drawing on that experience, we have traditionally maintained
a deep commitment to “always being on the support side in times ofdisaster.”For example, when a disaster occurs somewhere in the world, we
receive situational reports in real time from our operation covering that
region. Those reports always include updates on our efforts to support
customers and business partners in the region, efforts that underscore thestrength of our commitment.
Building firm, trust-based relationships with our partners, especiallyduring difficult times, is the wellspring of the Makita brand.

The first Japan-made portable electric planer, made by Makita, actively

supported restoration efforts following the Ise Bay typhoon.

11

Corporate Governanceand accounting. The Audit & Supervisory Board members

Overview of the Corporate
Governance Structure

share information by means including the provision of audit
reports and report on the Corporation’s condition to the
independent auditor in charge of the Corporation’s financial
audits as needed. The Corporation’s Articles of Incorporation
stipulate that the number of Audit & Supervisory Board
members shall not exceed five.
The Board of Directors determines basic policies,
matters required by law, and important matters relating
to management. The Corporation introduced a corporate
officer system to facilitate prompt implementation of theGroup strategy and strengthen the business execution
structure, and strives to engage in flexible and efficientbusiness operation and enhance corporate value. The Board

The Corporation has adopted an audit and supervisoryboard system. The Audit & Supervisory Board consistsof four Audit & Supervisory Board members, three ofwhom are independent outside Audit & Supervisory Board
members who are not and have not been employed by
the Corporation, including two who serve in a part-time
capacity. The two standing Audit & Supervisory Board
members are able to audit the execution of duties bydirectors at all times. Two of the four Audit & Supervisory
Board members have considerable knowledge of finance

The following is a schematic diagram of the Makita Group’s corporate
governance structure.

General Meeting of Shareholders
Appointment / Dismissal

Board of Directors

Appointment / Dismissal

Audit

Audit & Supervisory Board

13 Directors including
2 Outside Directors
Appointment / Dismissal /選任・解任・監督
Supervision

Appointment / Dismissal

Collaboration

4 Members including
3 Outside Members
Audit

Support
補助

Audit Staff
OfficeChairmanPresident

Corporate
Officer

ReportDisclosure
Committee

ReportCorporate Officer, General
Manager of Administration
Headquarters

Internal Audit
Division
Audit

Corporate Divisions / Group Companies
Financial Statements Audit / Internal Control Audit

12 MAKITA Corporation Annual Report 2018

Independent
Auditorof Directors currently consists of thirteen directors, two ofwhom are independent outside directors. The Corporation’sof the consolidated net sales of Aichi Steel Corporation.
There are no personal relationships, capital relationships, orArticles of Incorporation stipulate that the number ofother interests between the Corporation and the Aichi Steeldirectors shall not exceed fifteen.

Group, and the Corporation deems Mr. Morita independent
from the Corporation and the Corporation’s management incharge of business execution. Mr. Morita was elected as an
outside director at the General Meeting of Shareholders on
June 25, 2013, and has held office for five years.
Outside Director Mr. Masahiro Sugino formerly served
as president and representative director of LIXIL Group
Corporation, Japan’s leading comprehensive living andhousing solutions group, and as president and representative
director of LIXIL Corporation. Mr. Sugino attends meetingsof the Corporation’s Board of Directors and is responsible
for strengthening the management oversight function,using the experience and knowledge acquired throughout
his career as a management professional.
There are no personal relationships or other interests
between the Corporation and Mr. Sugino. The Makita Groupsells products to LIXIL Corporation, for whom Mr. Sugino
previously worked, as well as to Misawa Homes Co., Ltd.,
where he serves as an outside director, and to consolidated
subsidiaries of Misawa Homes. However, the totaltransaction amounts from sales to LIXIL Corporation and
the Misawa Homes Group in the fiscal year ended March
31, 2018 were ¥3 million and ¥284 million, respectively,
representing less than 0.01% and only 0.06%, respectively,of the consolidated net sales of the Makita Group. Although
the Corporation holds shares of LIXIL Group Corporation,
the amount on the consolidated balance sheets for the
fiscal year ended March 31, 2018 was ¥166 million, which
represents 0.03% of the total assets of the Makita Group.
Since there are no other personal relationships or interests
between the Corporation and LIXIL Group Corporation,
the Corporation deems Mr. Sugino independent from the
Corporation and the Corporation’s management in chargeof business execution. Mr. Sugino was elected as an outside
director at the General Meeting of Shareholders on June 25,
2015, and has held office for three years.

Internal Audits and Audits by
Audit & Supervisory Board
Members
As an independent organization in charge of the
Corporation’s internal audits, the Internal Audit Division
conducts the internal audits necessary to maintain thesoundness of the Corporation’s management.
With regard to audits by Audit & Supervisory Board
members, in accordance with the audit policy and divisionof duties established by the Audit & Supervisory Board,the four Audit & Supervisory Board members attend
meetings of the Board of Directors and other important
meetings, receive reports on operations from the directors,
read important documents such as approval requests,
and examine the status of operations and assets at thehead office and principal places of business. They request
business reports from subsidiaries, and as necessary, visit
subsidiaries to examine the status of operations and assets.
They also share information by receiving audit reports
and reports on the Corporation’s condition from theindependent auditor as needed.

Relationships with the Outside
Directors and Outside Audit &Supervisory Board Members
Outside Director Mr. Akiyoshi Morita formerly served
successively as president and chairman of Aichi SteelCorporation, a core company of the Toyota Group, one of
the world’s leading corporate groups. Mr. Morita attends
meetings of the Corporation’s Board of Directors and is
responsible for strengthening the management oversightfunction, using the experience and knowledge of amanagement professional cultivated throughout his career,
offering advice and recommendations in accordance withthat role.
There are no personal relationships, capital relationships,
or other interests between the Corporation and Mr.
Morita. Although the Makita Group purchases parts from
Aichi Steel Corporation, where Mr. Morita was previously
employed, the transaction amount in the fiscal year ended
March 31, 2018 was ¥703 million, representing 0.30%

Outside Audit & Supervisory Board member Mr. Akira
Kodama was elected as an Audit & Supervisory Board
member at the General Meeting of Shareholders on June 28,
2016, and has served for two years. Mr. Kodama has many
years of experience at financial institutions and professional
knowledge in finance. He attends meetings of the
Corporation’s Board of Directors and Audit & Supervisory
Board, offering opinions based on his perspectives as aprofessional.
Outside Audit & Supervisory Board member Mr. Fusahiro
Yamamoto was elected as an Audit & Supervisory Board
member at the General Meeting of Shareholders on June1325, 2013, and has served for five years. As a certified
public accountant, Mr. Yamamoto is well versed in corporate
accounting. He attends meetings of the Corporation’s
Board of Directors and Audit & Supervisory Board, offering
opinions based on his perspectives as a professional.
Outside Audit & Supervisory Board member Mr. Shoji
Inoue was elected as an Audit & Supervisory Board member
at the General Meeting of Shareholders on June 28, 2016,and has served for two years. Mr. Inoue has professional
knowledge and abundant experience as an attorney. He
attends meetings of the Corporation’s Board of Directors
and Audit & Supervisory Board, offering opinions based on
his perspectives as a professional.
Outside Audit & Supervisory Board members Mr. Akira
Kodama and Mr. Fusahiro Yamamoto hold no stock in the
Corporation and have no personal relationships, business
relationships, capital relationships, or other interests with
the Corporation. Outside Audit & Supervisory Board member
Mr. Shoji Inoue holds stock in the Corporation. Although
the Corporation pays transportation fees to Meitetsu
Transportation Co., Ltd., where Mr. Inoue serves an outside
director, the transaction amount in the fiscal year ended
March 31, 2018 was ¥201 million, representing 0.2% of
the consolidated net sales of Meitetsu Transportation Co.,
Ltd. Mr. Inoue has no other personal relationships, business
relationships, or other interests with the Corporation except
for holding and trading its stock.
The Corporation deems there is no risk of conflict ofinterest with ordinary shareholders and has designatedoutside directors Akiyoshi Morita and Masahiro Sugino
as independent directors and outside Audit & Supervisory
Board members Akira Kodama, Fusahiro Yamamoto, andShoji Inoue as independent Audit & Supervisory Board
members in accordance with the regulations of the financial
instruments exchanges. The Corporation has entered into
agreements with the above-mentioned two outside directors
and three outside Audit & Supervisory Board members, withrespect to their liability for damages to the Corporation asprescribed in Article 423, Paragraph 1, of the Companies
Act, to limit the total amount of liabilities to the sum of theamounts prescribed in the items of Article 425, Paragraph 1,
thereof.

14 MAKITA Corporation Annual Report 2018

The role of the Corporation’s outside directors is tostrengthen the efficacy of oversight by the Board of
Directors concerning the execution of duties by directors,
from an impartial, external perspective with no possibilityof conflict of interest with ordinary shareholders. Moreover,outside Audit & Supervisory Board members of the
Corporation have their own specialist expertise. Their role
is to audit the execution of business by directors, from an
impartial, external perspective with no possibility of conflictof interest with ordinary shareholders. To properly fulfill
their roles, outside directors and outside Audit & Supervisory
Board members receive reports on business performance,internal control systems, and the like at Board of Directors
meetings, where they cooperate with each other andexchange opinions as necessary. The Corporation has
not established particular criteria or policies covering theindependence of outside directors. When appointing outside
directors and outside Audit & Supervisory Board members,
we refer to criteria on the independence of outside directors
determined by financial instruments exchanges. Accordingly,
we believe our system for appointing outside directors andoutside Audit & Supervisory Board members is appropriate.

Policy on the Determination of
Remuneration for Directors
Monthly salaries for directors are paid according to position
and the like within limits for total monthly compensationprescribed by resolution of the General Meeting of
Shareholders.
Director bonuses, which directors (excluding outside
directors) are eligible for, are linked to consolidated businessresults, with the aim of raising motivation to improvebusiness performance.
Seeking to increase morale and motivation to help
improve corporate value over the medium and long terms,
the Corporation issues stock compensation-type stock
options to directors (excluding outside directors) so thatthey share the risks and rewards of stock price fluctuations
with shareholders.
To ensure independence from management, the total
amount of compensation for Audit & Supervisory Board
members is fixed, with the specific amount determined inconsultation with auditors.

Comments from an Outside Audit &Supervisory Board Member
In my role as an outside Audit & Supervisory
Board member, shareholders and other investors
expect me to monitor overall management as anindependent officer through daily audit activities.
They also expect me to contribute to corporate
governance and, by extension, improvement ofcorporate value.
With this in mind, I have been working with theBoard of Directors to identify potential risks underthese dramatically changing market conditions. At
Audit & Supervisory Board meetings, I have sought
to exchange frank opinions with other members.
In addition to periodic interviews on the status ofbusiness execution with all the directors and senior
employees, I have worked in cooperation with our
auditing firm and confirmed that the Corporation ishandling its business activities appropriately.
Through my activities as an Audit & Supervisory
Board member, I was impressed with the
Corporation’s strength to steadily grow as a global
corporation by promoting measures brimming with
foresight in responding swiftly to changing market
conditions—including advances in cordless products
and engineless products—amid political andeconomic uncertainty around the world. Moreover,
Makita has a solid backbone as a manufacturing
company. On the sales side, I was deeply impressedwith the Corporation’s commitment to always
valuing customers, reflected in its “3-day repair
system.”Overseas sales account for more than 80% of
our consolidated net sales, and around 90% of
our products (on a unit basis) are made overseas,so we are one of Japan’s most globally developed
companies. In this context, Makita’s management
team, from the president down, regularly visits ourdomestic and overseas operations to grasp theirsituations. We have a mechanism in place whereby
any issues identified from such visits are promptly

raised at Board of Directors meetings. We also haveoutside directors, who have served as top executives
in industries outside the Corporation, who fulfill amonitoring function at Board of Directors meetings.
From the perspective of governance, therefore,
I believe that the Corporation is being managed
effectively.
Although competition will remain fierce in Japanand overseas, Makita is expected to prevail in its
quest to become a “strong company.” Personally, I
will make full use of my experiences at the Bank ofJapan and other financial institutions to maintainand strengthen corporate governance and, byextension, help increase corporate value from mystandpoint as an outside Audit & Supervisory Board
member.

Akira Kodama
Standing Audit &Supervisory Board Member (Outside)15

Directors, Audit & Supervisory Board
Members and Corporate Officers (as of July 1, 2018)
Directors and Audit & Supervisory Board Members

Directors

Audit & Supervisory Board Members* Chairman
Masahiko Goto

Standing Audit & Supervisory Board Members
Mitsuhiko Wakayama* President
Munetoshi Goto
Director, Managing Corporate Officer
Tadayoshi Torii
General Manager of Production Headquarters

Directors, Corporate Officers
Hisayoshi Niwa
General Manager of Quality Headquarters
Shinichiro Tomita
General Manager of Purchasing Headquarters
Tetsuhisa Kaneko
General Manager of Research and Development Headquarters

Akira Kodama

Audit & Supervisory Board Members
Fusahiro Yamamoto
Certified Public Accountant
Shoji Inoue
Attorney at Law

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

Corporate Officers

Tomoyuki Ota
Assistant General Manager of Research and Development
Headquarters

Yasushi Fukaya
In charge of Europe Sales

Takashi Tsuchiya
General Manager of Domestic Sales Headquarters

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

Masaki Yoshida
Assistant General Manager of Production Headquarters
Takashi Omote
General Manager of International Sales Headquarters
Yukihiro Otsu
General Manager of Administration Headquarters

Outside Directors
Akiyoshi Morita
Masahiro Sugino
Special Advisor of LIXIL Corporation*Denotes Representative Director.

Shinichi Sakamoto
In charge of Asia Sales and Managing Director of Makita
China Sales
Atsunobu Iwakura
Assistant General Manager of Domestic Sales Headquarters:
Osaka Area
Hideki Shimazoe
Assistant General Manager of Domestic Sales Headquarters:
Nagoya Area and Direct Business Department
Larry Peck
President of Makita Corporation of America and in charge ofBrazil Plant
Rich Chapman
Executive Vice President of Makita U.S.A. Inc.
Barry Smart
Sales and Marketing Director of Makita (U.K.) Ltd.

16 MAKITA Corporation Annual Report 2018

5-Year Summary
MAKITA CORPORATION AND SUBSIDIARIESFOR THE YEARS ENDED MARCH 31
U.S. Dollars inthousands

Yen in millions
For the years ended March 31

2014

2015

2016

2017

2018

2018

Net Sales¥383,207¥ 414,718¥423,623¥414,999¥477,298$4,502,811

Domestic

66,01967,74068,44574,381

82,575779,009

Overseas317,188346,978

355,178

340,618

394,723

3,723,802

Operating Income

54,914

71,90564,67662,564

79,762752,472

Income Before Income Taxes

56,974

68,394

61,49264,73879,678751,679

Net Income Attributable to Makita
Corporation

38,45345,307

41,61544,78254,755516,557

Net Cash Provided by Operating
Activities

41,68635,89434,18863,35133,294

314,094

Net Cash Used in Investing Activities(20,084)(20,096)(6,573)(5,015)(14,811)(139,726)

Free Cash Flows

21,602

15,79827,61558,33618,483

174,368

Net Cash Used in Financing Activities(7,365)(12,017)(18,719)(9,495)(17,743)(167,387)

Capital Expenditures

11,417

12,124

11,76913,222

14,149133,481

Depreciation and Amortization

8,622

8,619

9,284

8,943

9,917

93,557

R&D Costs

8,720

9,117

9,593

10,13910,894

102,774

As of March 31
Total Assets¥ 519,121¥575,328¥558,024¥597,249¥651,031$6,141,802

Net Working Capital

310,750

358,245362,675

374,297

415,979

3,924,330

Total Makita Corporation
Shareholders' Equity

435,934

486,021479,752

502,170

551,939

5,206,972

4,163

5,030

2,225

6,597

3,544

33,434

Interest-Bearing Debt
Per Share Amounts：
Earnings per Share of Common Stockand per ADS: Basic
Total Shareholders' Equity

Yen
¥

141.6

¥

166.9

¥

U.S. Dollars
153.3

¥

165.0

¥

201.7

$

1.90

1,605.8

1,790.3

1,767.3

1,849.9

2,033.2

19.18

Cash Dividends Applicable to the Year

91.0

118.0

101.0

100.0

61.0

0.58

Other data：
Ratio of Operating Income to Net Sales

14.3%

17.3%

15.3%

15.1%

16.7%

Return on Equity (ROE)

9.5%

9.8%

8.6%

9.1%

10.4%

Return on Assets (ROA)

8.0%

8.3%

7.3%

7.8%

8.8%

Shareholders' Equity Ratio

84.0%

84.5%

86.0%

84.1%

84.8%

Average Number of Shares Outstanding

271,481,657

271,472,428

271,468,232

271,463,676

271,465,951

Number of Outstanding Shares
Excluding Treasury Stock

271,475,252

271,469,736

271,466,522

271,460,572

271,467,928

12,804

13,835

14,784

15,344

16,137

Employees

Notes
1. The U.S. dollar amounts above and elsewhere in this report represent translations, for the convenience of the reader, at the rate of ¥106 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. Figures are rounded up/down to the nearest million yen and/or thousand U.S. dollars.
5. The Company implemented a two-for-one common stock split, effective April 1, 2017. Figures for net income attributable to Makita Corporation common shareholders per share (basic), Makita Corporation
shareholders’ equity per share, average number of shares outstanding, and number of outstanding shares excluding treasury stock are calculated based on the assumption that the relevant stock split was
carried out for prior years as well. Regarding annual dividends per share, actual dividend amounts before the relevant stock split are stated.				

17

Consolidated Balance Sheets
MAKITA CORPORATION AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETSAS OF MARCH 31, 2017 AND 2018
Yen in millions
2017

U.S. Dollars in thousands
2018

2018

ASSETS

CURRENT ASSETS:
Cash and cash equivalents¥142,181¥147,320$1,389,811

Time deposits

34,32943,013405,783

Short-term investments

23,441

14,782

139,453

Trade receivables ̶ Notes

1,199

1,343

12,670Trade receivables ̶ Accounts

67,086

79,092

746,151(1,137)(1,340)(12,642)

167,398

196,217

1,851,104

Deferred income taxes

4,723

―

―

Prepaid expenses and other current assets

13,34916,150152,358

452,569

496,577

4,684,689

Land

22,35822,626

213,453

Building and improvements

94,927

98,648930,642

Machinery and equipment

91,493

98,868932,717

Construction in progress

5,531

6,027

56,858214,309226,169

2,133,670

Less-Accumulated depreciation and amortization(119,802)(126,305)(1,191,557)

Total net property, plant and equipment

94,50799,864

942,113

Investments

34,00433,815

319,009

Goodwill

721

721

6,802

3,641

3,944

37,208650

3,975

37,500

11,157

12,135

114,481

50,17354,590515,000¥597,249¥651,031$6,141,802

Less-Allowance for doubtful receivables
Inventories

Total current assets

PROPERTY, PLANT AND EQUIPMENT, AT COST:

Subtotal

INVESTMENTS AND OTHER ASSETS:

Other intangible assets, net
Deferred income taxes
Other assets
Total investments and other assets
Total assets

18 MAKITA Corporation Annual Report 2018

Yen in millions

2017

U.S. Dollars in thousands
2018

2018

LIABILITIESCURRENT LIABILITIES:
Short-term borrowings

¥

6,579

¥

3,411

$

32,179Trade notes and accounts payable

26,34728,156

265,623

Other payables

7,122

7,131

67,274

Accrued expenses

10,537

11,952

112,755

Accrued payroll

9,431

10,731

101,236

Income taxes payable

6,944

9,720

91,698Deferred income taxes

3,134

―

―

Other liabilities

8,178

9,497

89,59478,27280,598760,358

Accrued retirement and termination benefits

3,161

3,206

30,245

Deferred income taxes

8,313

9,391

88,594

Other liabilities

1,692

1,703

16,066

Total long-term liabilities

13,166

14,300134,906

Total liabilities

91,43894,898895,264

Common stock

23,80523,805

224,575

Additional paid-in capital

45,50145,531

429,538

Legal reserve

5,669

5,669

53,481Retained earnings

456,546

497,456

4,692,981

Accumulated other comprehensive income (loss)(17,728)(8,905)(84,009)

Treasury stock, at cost

(11,623)(11,617)(109,594)

Total Makita Corporation shareholders' equity

502,170

551,939

5,206,972

3,641

4,194

39,566

Total equity

505,811556,133

5,246,538

Total liabilities and equity¥597,249¥651,031$6,141,802

Total current liabilities
LONG-TERM LIABILITIES:EQUITYMAKITA CORPORATION SHAREHOLDERS EQUITY:NON-CONTROLLING INTEREST

19

Consolidated Statements of Income
MAKITA CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME FOR THE YEARS ENDED MARCH 31, 2016, 2017 AND 2018
Yen in millions
2016

U.S. Dollars in thousands

2017

2018

2018

NET SALES¥ 423,623¥414,999¥477,298$4,502,811

Cost of sales

270,121267,506

302,173

2,850,689

GROSS PROFIT

153,502

147,493

175,125

1,652,123

Selling, general, administrative and others, net

88,82684,92995,363

899,651

OPERATING INCOME

64,67662,564

79,762752,472

Interest and dividend income

2,468

2,512

2,919

27,538Interest expense

(115)

(104)

(43)

(406)

(1,552)(233)(3,235)(30,519)

OTHER INCOME (EXPENSE):

Exchange gains (losses) on foreign currencytransactions, net
Realized gains (losses) on securities, net

1,418

26

299

2,821

Impairment loss on securities(5,403)

(27)

(24)

(226)

(3,184)

2,174

(84)

(792)

INCOME BEFORE INCOME TAXES

61,49264,73879,678751,679

Provision for income taxes : Current

18,707

19,98824,943

235,311: Deferred

812

(378)

(536)

(5,057)

19,51919,61024,407230,255

Total other income (expense), net

Total income tax expense

41,97345,12855,271

521,425

Less-Net income attributable to the noncontrolling interest

NET INCOME

358

346

516

4,868

NET INCOME ATTRIBUTABLE TO MAKITACORPORATION¥ 41,615¥ 44,782¥ 54,755$ 516,557¥¥

PER SHARE OF COMMON STOCK AND ADS:

Yen

Earnings per share: Basic¥

Cash dividends per share paid

153.3

U.S. Dollars

165.0

101.0

100.0

201.7

$

61.0

1.90
0.58

Note: The Company implemented a two-for-one common stock split, effective April 1, 2017.
Figures for net income attributable to Makita Corporation common shareholders per share (basic) are calculated based on the assumption that the relevant stock split was carried out at the beginning of
the fiscal year ended March 31, 2016.
Regarding annual dividends per share for the fiscal year ended March 31, 2016 and the fiscal year ended March 31, 2017, actual dividend amounts before the relevant stock split are stated.

Consolidated Statements of Comprehensive Income
MAKITA CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME FOR THE YEARS ENDED MARCH 31, 2016, 2017 AND 2018
Yen in millions
2016

NET INCOME

U.S. Dollars in thousands

2017

2018

2018

¥ 41,973¥45,128¥55,271$521,425

Foreign currency translation adjustment(26,304)(19,812)

9,860

93,019Unrealized holding gains (losses) on availablefor-sale securities(3,036)

10,742(1,364)(12,868)

OTHER COMPREHENSIVE INCOME (LOSS):

Pension liability adjustment(2,678)

192

544

5,132

Total other comprehensive income (loss)(32,018)(8,878)9,040

85,283

9,955

36,25064,311

606,708

231

147

733

6,915

¥ 9,724¥36,103¥63,578$599,792

COMPREHENSIVE INCOME (LOSS)
Less-Comprehensive income attributable to thenon-controlling interest
COMPREHENSIVE INCOME (LOSS)ATTRIBUTABLE TO MAKITA CORPORATION

20 MAKITA Corporation Annual Report 2018

Consolidated Statements of Changes in Equity
MAKITA CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CHANGES IN EQUITY FOR THE YEARS ENDED MARCH 31, 2016, 2017 AND 2018

Common stock

Additional paidin capital

Legal reserve

Retainedearnings

Accumulated othercomprehensive
Treasury stockincome (loss)

Noncontrollinginterest

Total

Yen in millions

Balance as of April 1, 2015
Purchases and disposal of treasury stock
Cash dividends
Comprehensive income:Net income
Other comprehensive income (loss)
Other income (loss)
Balance as of March 31, 2016

¥ 23,805¥ 45,421¥ 5,669¥ 399,874¥ 22,842¥ (11,590)(12)(16,016)¥ 3,564(177)

41,615358(127)(31,891)¥ 489,585(12)(16,193)
41,973(32,018)35¥ 483,370¥ 23,80535¥ 45,456¥ 5,669¥ 425,473¥ (9,049)¥ (11,602)¥ 3,618

Balance as of April 1, 2016
Purchases and disposal of treasury stock
Cash dividends
Comprehensive income:Net income
Other comprehensive income (loss)
Other income (loss)
Balance as of March 31, 2017

¥ 23,805¥ 45,456¥ 5,669¥ 425,473¥ (9,049)¥ (11,602)(21)¥ 3,618¥ 23,80545¥ 45,501¥ 5,669¥ 456,546¥(17,728)¥ (11,623)¥ 3,641

45,128(8,878)45¥ 505,811

Balance as of April 1, 2017

¥ 23,805¥ 45,501¥ 5,669¥ 456,546¥ (17,728)¥ (11,623)¥ 3,641¥ 505,811(13,709)(124)

44,782346(199)(8,679)Purchases and disposal of treasury stock(5)

Disposal of treasury stock (exercise of stock
options)
Cash dividends

(11)

(5)

11
(13,845)¥ 483,370(21)(13,833)0(180)(14,025)516

55,271

217

9,040

Comprehensive income:Net income

54,755

Other comprehensive income

8,823

Other income (loss)

41

41

Balance as of March 31, 2018

¥ 23,805¥ 45,531¥ 5,669¥ 497,456¥ (8,905)¥ (11,617)¥ 4,194¥ 556,133

Balance as of March 31, 2018 – US$ inthousands$224,575$429,538$53,481$4,692,981$(84,009)$(109,594)$39,566$5,246,538

21

Consolidated Statements of Cash Flows
MAKITA CORPORATION AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS FOR THE YEARS ENDED MARCH 31, 2016, 2017 AND 2018

U.S. Dollars inthousands

Yen in millions
2016

2017

2018

2018

CASH FLOWS FROM OPERATING ACTIVITIES:Net income¥ 41,973¥ 45,128¥ 55,271$ 521,425

Adjustments to reconcile net income to net cash provided by operating
activitiesDepreciation and amortization

9,284

8,943

9,917

93,557

Deferred income tax expense (benefit)

812

(378)

(536)

(5,057)

Realized (gains) losses on securities, net(1,418)

(26)

(299)

(2,821)

Unrealized (gains) losses on securities, net

5,403

27

24

226

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

(39)

385

18

170

Bad debt expense

374

172

317

2,991

1,849

2,077

2,759

26,028Inventory write-downs
Changes in assets and liabilitiesTrade receivables(3,526)(4,824)(11,716)(110,528)

Inventories(17,437)448(26,932)(254,075)

Trade notes and accounts payable and accrued expenses(2,821)

9,171

2,780

26,226

177

3,472

2,755

25,991(1,253)

(684)

(557)

(5,255)

810

(560)

(507)

(4,783)34,18863,35133,294

314,094(133,481)

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(11,769)(13,222)(14,149)

Purchases of available-for-sale securities(9,997)(1,217)(3,734)(35,226)

Proceeds from sales of available-for-sale securities

15,26830,663

11,993

113,142

Proceeds from maturities of available-for-sale securities

500

-

-

-

-

(8,601)(5,009)(47,255)

Proceeds from maturities of held-to-maturity securities

500

5,700

4,200

39,623

Proceeds from sales of property, plant and equipment

1,421

383

496

4,679

Investment in term (time) deposits(36,169)(56,437)(51,010)(481,226)

Withdrawal of term (time) deposits

34,251

37,38442,374

399,755

(578)

332

28

264

(6,573)(5,015)(14,811)(139,726)

Changes on borrowings with original maturities of less than three months

867

4,691

(3,667)(34,594)

Payments on borrowings with original maturities of more than three months(3,556)

(329)

-

-

(12)

(22)

(5)

(47)

(16,016)(13,709)(13,845)(130,613)

(2)

(126)

(226)

(2,132)(18,719)(9,495)(17,743)(167,387)

Purchases of held-to-maturity securities

Other, net
Net cash used in investing activities
CASH FLOWS FROM FINANCING ACTIVITIES:

Purchase (sale) 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(3,510)(6,575)

4,399

41,500NET CHANGE IN CASH AND CASH EQUIVALENTS

5,386

42,266

5,139

48,481

CASH AND CASH EQUIVALENTS, BEGINNING OF YEAR
CASH AND CASH EQUIVALENTS, END OF YEAR

94,52999,915

142,181

1,341,330¥ 99,915¥142,181¥147,320$1,389,811

¥

¥

¥

$

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 MAKITA Corporation Annual Report 2018

116
18,530120
16,51720
22,187

189
209,311

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, Wukedongsan
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 andTechnology 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

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
Taichung branch
No.131, Daxing Rd., Taiping Dist.,
Taichung City 411, Taiwan
Phone: +886-(0)4-2392-1650
Fax: +886-(0)4-2392-1653
Kaohsiung branch
No.105, Yucheng Rd., SanminDist., Kaohsiung City 807, Taiwan
Phone: +886-(0)7-343-0292~4
Fax: +886-(0)7-341-3602

THAILAND

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

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

AMERICAS
UNITED STATESMEXICO

Service centers
Johor Bahru, Kuching

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

SINGAPORE

MYANMAR

Central regional (Chicago)
office1450 Feehanville Drive, Mount Prospect,
IL 60056-6011
Phone: +1-847-297-3100
Fax: +1-847-297-1544

Makita Singapore Pte. Ltd.
Myanmar service center

CAMBODIA

Makita Singapore Pte. Ltd.
Cambodia service center

INDIA

Makita Power Tools India
Pvt. 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
Service centers
Delhi, Chennai, Kolkata, Pune,
Secunderabad, Cochin

VIETNAM

Makita Vietnam Co., Ltd.
Head office
Unit 06, Block 16, 18 L1-2, Street 3, VSIPII Industrial Park, Hoa Phu Ward, Thu
Dau Mot City, Binh Duong Province,
VietnamPhone: +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, Vietnam
Phone: +84-241-376-5942
Fax: +84-241-376-5941
Service centers
Da Nang, Can Tho, Buon Ma Thuot

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. Leonard (Montreal), Whitby,
Winnipeg

Western regional (Los Angeles)
office14930 Northam Street, La Mirada,
CA 90638-5753
Phone: +1-714-522-8088
Fax: +1-714-522-2437

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

Western regional office11771 Hammersmith Way, Richmond,
BC V7A 5H6
Phone: +1-604-272-3104
Fax: +1-604-272-5416

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
Distribution & Training Center
910 East Pleasant Run Road,
Wilmer, TX 75172
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

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 - (pista
norte) Bairro Colônia Dona Luíza, CEP
84043-450 -Ponta Grossa, PR
Phone: +55-(0)42-3302-2100
São Paulo sales office
Rua Makita Brasil, 200 -Bairro
Cooperativa - São Bernardo do Campo- SP CEP 09852-080
Phone: +55-(0)11-4392-2411/21992500
Fax: +55-(0)11-4392-2471/4392-4440
Bahia sales branch
Rua Andre Luiz R da Fonte, 491 Bairro
Pitangueiras, Lauro de Freitas, BA
CEP 42700-000
Phone: +55-(0)71-3252-0154
Paraná sales branch
Rua Comendador Roseira,499 Bairro Prado Velho, Curitiba,
PR CEP 80215-210
Phone: +55-(0)41-3333-8070
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, Pernambuco,
Minas Gerais, Rio Grande do Sul

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

23

ARGENTINA
Makita Herramientas Eléctricas
de Argentina 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

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

Makita Chile Comercial Ltda.
Head office
Av. Lo Boza 120-B Modulo 1,
Pudahuel, Santiago, CP 9030971
Phone: +56-2-2540-0400
Fax: +56-2-2540-0436

Toulouse office
15, Rue de Boudeville, Z.I. de Thibaud,
31104 Toulouse
Phone: +33-(0)5-6143-2200
Fax: +33-(0)5-6143-2201

Factory service centers
Santiago, Temuco

SPAIN

PERU
Makita Peru S.A.
Panamericana Sur - Km. 29, Distrito de
Lurin, Provincia de Lima
Centro de Operaciones “MEGACENTRO
LURIN” Locales B1, B23, B24
Phone: +51-(1)-713-1212
Fax: +51-(1)-561-0099

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

PORTUGAL

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

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

COLOMBIA

ITALY

BOLIVIA

Makita Colombia, S.A.S
Kilometro 7 Autopista Bogota-Medillin,
Centro Empresarial Celta Trade Park
Lote 123 Bodega 3 FunzaCundinamarca, 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
Factory service center
Glasgow (Scotland)
Makita International Europe Ltd.
Michigan Drive, Tongwell,
Milton Keynes, Bucks MK15 8JD
Phone: +44-(0)1908-211678
Makita Manufacturing Europe
Ltd.
Hortonwood 7, Telford,
Shropshire TF1 7YX
Phone: +44-(0)1952-677688
Fax: +44-(0)1952-677678

FRANCE
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
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

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

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

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

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

LATVIA
Makita Oy Latvian factory service center

LITHUANIA
Makita Oy Lithuanian factory service
centerNORWAY
Makita Norway
Løxaveien 11A N-1351 Rud Norway
Phone: +47 99 40 76 00
Fax: +47 67 13 38 83

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

24 MAKITA Corporation Annual Report 2018

THE NETHERLANDSHUNGARY

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

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

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

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.
Airportstrasse 4, A-2401 Fischamend
Phone: +43-(2232)-77700
Fax: +43-(2232)-77700-40

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

CROATIA
Makita d.o.o. Croatia factory service
centerUKRAINE
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
Warsaw branch
Moszna-Parcela 29 05-840 Brwinów
Phone: +48-(0)22-177-7300

CZECH REPUBLIC
Makita, spol. s r.o.
Kaštanová 555/125d, 620 00 Brno
Phone: +42-(0)5-432-16944
Fax: +421-(0)48-4161-769

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

ROMANIA
Makita Romania S.R.L.
Str. I.C.Bratianu nr. 164 Depozit Faza
3 077030 Comuna Branesti jud. Ilfov
Romania
Phone: +40 21 569 80 61/+40 21 569
80 62
Fax: +40 21 569 80 59
SC Makita EU SRL
Str.I.C. Bratianu, nr.164, Comuna
Branesti, jud. ILFOV, ROMANIA 077030
Phone: +40-21-310-7675
Fax: +40-21-200-0219

BULGARIA
Makita Bulgaria EOOD
Okolovrasten Pat (circle road), No.373,
Sofia 1186, Bulgaria
Phone: +359-2-921-0551
Fax: +359-2-921-0550

RUSSIA
Makita LLC
1, build. 1, Permskaya str. , Moscow,
Russia, 107143
Phone: +7-495-915-88-66
Fax: +7-495-916-57-31
St.Petersburg branch
Shpalernaya street 54, letter B, premise
25-H, Saint Petersburg, Russia, 191015
Phone: +7 (812) 244-47-84
Vladivostok branch
22, Makovskogo str., Vladivostok,
Primorsky Region, Russia, 690041
Phone: +7-(423)-237-59-84
Fax: +7-(423)-237-59-85
Novosibirsk branch
15, Dargomyzhskogo str., Novosibirsk,
Russia, 630047
Phone:+7-383-209-18-19
Fax:+7-383-209-18-19
Samara branch
3 Mirnaya str., Samara, Russia, 443035
Phone: +7-(846)-202-90-50/+7-(846)-202-42-83
Krasnodar branch
32/2, Turgenevskoe, Takhtamukaisky
district, Adygea Republic, Russia, 385132
Phone:+7-(861)-238-24-97
Yekaterinburg Branch5, pereulok Avtomatiki, Yekaterinburg,
Russia, 620049
Phone:+7-(343)-286-00-09

KAZAKHSTAN
Makita Kazakhstan LLP
Kommunalnaya 39, 050016, Almaty,
Kazakhstan
Phone: +7-727-233-0827
Fax: +7-727-382-7921

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
Makita Africa LIMITED
P.O. Box 9163, 4th floor, Samora
Avenue, Dar es Salaam, Tanzania

OCEANIA

Corporate Data

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

NEW ZEALAND
Makita (New Zealand) Ltd.
46 Westpoint Drive, Hobsonville,
Auckland 0618
Phone: +64-(0)9-479-8250
Fax: +64-(0)9-479-8259
Factory service center
Christchurch

Makita Corporation
Head Office
3-11-8, Sumiyoshi-cho, Anjo,
Aichi 446-8502, Japan
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

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

Independent Registered
Public Accounting Firm
KPMG AZSA LLC

Common Stock Listings
Tokyo and Nagoya stock exchanges

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

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

Date of Founding
March 21, 1915

Paid-in Capital¥24,206 million

Number of Shares Issued
280,017,520 shares,
including 8,549,592 of treasury stock(As of March 31, 2018)

Note: The Corporation implemented a two-for-one common stock split of the Corporation, effective April 1,
2017.

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 therisks 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 be achieved.

25