FY2019
Operating Results(Fiscal Year ended March 31, 2019)
Munetoshi Goto
President, Representative Director

1

Voluntary Adoption of International
Financial Reporting Standards (IFRS)From the first quarter ended March 31, 2019, Makita
voluntarily adopt the International Financial ReportingStandards (IFRS) instead of the accounting principles
generally accepted in the United States (U.S. GAAP).
In addition, financial for the year ended March 31, 2018
have also been reclassified in accordance with IFRS
and used in comparative analyses.

21

FY2019 Results
Variance to FY2018

Revenue¥490.6 billion+ 2.8%

Domestic¥92.1 billion+ 11.6%

Overseas¥398.5billion+ 0.9%

Overseas revenue ratio: 81.2% (FY2018: 82.7%)
3

Revenue by Geographic Area
Yen inbillions
500

477.3
423.6

400
300

415.0
21.2
24.7
26.1
41.4

17.2
25.1
23.1
40.1

67.8

66.1

490.6
13.8
30.2
27.8
40.9

15.5
31.3
27.9
44.1

72.5

73.9

Oceania

Central &South America
Asia

202.0

200

MidEast/Africa

213.3

169.0

North America

174.0

100

Europe

74.4

68.4

92.1

82.6

Japan0FY16FY17FY18FY1942

Effective Exchange Rate
FY2018FY2019US$¥110.85¥110.92Euro¥129.66¥128.44

RMB¥16.74¥16.54

0.1%

Depreciation

0.9%

Appreciation

1.2%

Appreciation
Weighted average change for all foreign currencies:
2.6% appreciated in the value of the yen

Effect on net sales: Decrease of ¥10.7 billion
5Revenue Growth (Local Currency Basis)
Japan
15%
10%

Japan
FY2018 + 11.0%
FY2019 + 11.6%

5%0%-5%FY20181H

FY2019
2H

1H

2H63

Revenue Growth (Local Currency Basis)
Europe+7.8%
Eastern Europe /Russia

20%

FY2018 + 10.4%
FY2019 + 10.6%

10%Western Europe
FY2018 + 10.1%
FY2019 + 6.2%0%

FY2018-10%

1H

FY2019
2H

1H

2H
7

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

North America
FY2018 + 8.8%
FY2019 - 1.6%

10%

Asia

0%

FY2018 + 6.8%
FY2019 - 6.2%

-10%-20%

FY20181H

FY2019
2H

1H

2H
84

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

Central & SouthAmerica

20%

FY2018 + 16.8%
FY2019 + 12.9%

10%

Oceania0%

FY2018 + 18.9%
FY2019 + 2.2%

-10%

Mid-East/Africa-20%-30%

FY20181H

FY2018 - 12.1%
FY2019 - 10.8%

FY20192H

1H

2H

9Lithium-ion Battery Products
Outdoor Power Equipment (OPE)New Products in this fiscal year
Lithium-ion Battery Products

Outdoor Power Equipment

Cordless Grass Trimmer

Cordless Screwdriver

Cordless Cleaner

Cordless Mixer

Cordless Lawn Mower

Cordless Chain Saw

105

Production Quantities byGeographic Area
10 thousandsof units

3,058

11Inventories
March 31, 2018

¥196.5 billion

March 31, 2019¥219.9 billion

Increase of inventories¥23.4 billion

Breakdown:
Increase of actual inventories¥30.5 billion

Decrease by translation into yen¥7.1 billion
126Operating Profit
FY2018FY2019VarianceRevenue¥477.3 billion ¥490.6 billion+ 2.8%

Cost of Sales¥301.4 billion ¥313.4 billion+ 4.0%

Cost of Sales
Ratio

63.1%

63.9%

Up
0.8 points¥95.7 billion¥98.9 billion+ 3.4%

20.1%

20.1%

-OperatingProfit¥80.2 billion¥78.3 billion- 2.4%

OperatingProfit Ratio

16.8%

16.0%

Down
0.8 points

SG&A
Expenses
SG&A
Expenses Ratio

13Analysis of Operating Profit
Yen inbillions

Exchange
Sales Others Rate
Volume +4.1 -6.6
SG&A+8.9-4.8Procurement
Cost up-3.5

80.2

FY201878.3

FY2019147

Financial Income (Expenses),Profit Before Income Taxes, Profit
Attributable to Owners of the Parent
FY2018FY2019Variance

FinancialIncome(Expenses)- ¥0.4 billion- ¥1.6 billion + ¥2.0 billion

Profit Before
Income Taxes¥79.9 billion¥79.9 billion+ 0.1%

ProfitAttributable toOwners of theParent¥54.9 billion¥55.8 billion+ 1.5%¥202.39¥205.37+ 1.5%EPS

15

Makita’s Commitments New products (expansion of thelithium-ion battery products lineup) Conversion from engine-powered
to battery-powered Expansion of sales, after-sales
service and distribution networks
168

Makita’s Commitments
New products (expansion of the lithium-ion battery products lineup)
Accelerate conversion to cordless products in all categories
Further expand
opportunities where
Makita’s battery-powered
products can be used
355mm Portable Cut-off LW141D

Disaster Kit CK1008

Develop useful products thatsatisfy users by utilizing
charging control and motor
technologies

Cordless Inflator MP100D

17Makita’s Commitments
Conversion from engine-powered to battery-powered
Develop and expand cordless OPE (Outdoor Power Equipment)
New
Productsin thisfiscal year

Cordless Lawn Mower
MLM460D

PR job

Holding exhibitions and hands-on events＜Advantages of battery-powered OPE＞
 No exhaust gas emissions
 Reduced noise and vibration
 Light weight Easier operation and maintenance<Direction of Makita’s activities>• Launch new high-performance
products• Create opportunities where users canlearn advantages of Makita’s products
and cultivate needs by using its sales& service offices• Expand and strengthen thedistribution and after-sales service
network• Develop sales channels189

Makita’s Commitments
Expansion of sales, after-sales service and distribution networks
Strengthen customer- and community-based sales networks
Bases opened in this fiscal year (including remodeling)
地域

都市名

Asia

Mumbai（India）
Ahmadabad（India）
Hyderabad（India）
Nha Trang（Vietnam）
ho chi minh（Vietnam）
Pingdong（Taiwan）

EuropeLondon（U.K.）
Vladivostok（Russia）
Prague（Czech）
Oberbipp（Swiss）

Central & SouthAmericabogota（Colombia）
Santiago（Chile）• Upgrade after-sales services, introduce
new products, and cultivate users’needs• Respond to the expansion of batterypowered OPE sales (after-sales
services and distribution networks)
etc.

Makita Chile Ltda.
An event to celebrate the 20th anniversary
and completion of the new office building 19

FY2020 Forecast
Variance to FY2019Revenue¥500.0 billion+ 1.9%

Domestic¥95.0 billion+ 3.1%

Overseas¥405.0 billion+ 1.6%

Overseas revenue ratio: 81.0% (FY2019: 81.8%)
Assumed foreign exchange rates
US$EuroEuro/US$RMB

¥110

¥125

1.14

¥16.3
2010

FY2020 Forecastby Geographic Area
Yen inbillions
500490.6

477.3

15.5
31.3
27.9
44.1

40073.9300500.0
13.8
30.2
27.8
40.9

14.0
29.5
28.5
43.0

72.5

74.5

MidEast/Africa
Oceania

Central &North
America
Asia

200

215.5

213.2

202.0

NorthAmerica
Europe

100
95.0

92.1

82.6

Japan

0
FY2018FY2019FY2020(Forecast)

21

Analysis of Operating Profit(Forecast)
Yen inbillions

Sales SG&A
Volume+6.3-6.0

Exchange
Rate-3.0 Others
-3.6

78.3
72.0

FY2019FY2020 (Forecast)
2211

FY2020 Performance Forecast
FY2019FY2020

VarianceRevenue¥490.6 billion¥500.0 billion+ 1.9%

Operating profit¥78.3 billion¥72.0 billion- 8.1%

Profit beforeincome taxes¥79.9 billion¥72.7 billion- 9.0%

Profit attributable toowners of the parent¥55.8 billion¥50.0 billion- 10.3%EPS

205.37円

184.18円

-ROE

9.9%

8.7% 1.2pt down
23

Production Plan
10 thousands of units

3,111

Plan for FY2020
3,160

3,058

3,000

105

2,000

2,179

109

130
Central &SouthAmerica
Asia

2,013

2,065
North
America

1,000

134

100

414

512

560

289

290

305

1240FY2018

FY2019EuropeJapan

FY2020(Forecast)2412

Capital Expenditure,Depreciation, R&D Cost
Capital Expenditure
FY18(Yen in billions)
FY2020:¥38.0 billion (Forecast)
Expand factories in China and Romania,
distribution warehouses and sales and aftersales bases in Japan and overseas

15.023.9

FY1938.0

FY20（Forecast）

Depreciation and Amortization R&D Cost

(Yen in billions)(Yen in billions)

FY18

10.8

FY18

10.9

FY19

11.3

FY19

11.3

FY20

12.8

FY20（Forecast）

12.0 （Forecast）
25

Cash Dividends
Dividend Policy

Dividend Payout Ratio: 30% or greater
FY2019FY2020(Forecast)Profit attributable toowners of the parent¥55.8 billion¥50.0 billion

EPS
Special Circumstance
Annual Cash Dividend
Per ShareInterim Dividend¥205.37¥184.18--¥62(Note)¥10¥10Year-end Dividend¥52(Note)

Payout Ratio

30.2%

30% or greater

Note: In April 2020, the Board of Directors plans to propose a dividend equivalent to at least 30% of profit attributable to owners of theparent.

26

13

http://www.makita.biz/
FORWARD-LOOKING STATEMENTS
This document contains forward-looking statements based on Makita's own
projections and estimates. The power tools market, where Makita is mainly
active, is subject to the effects of rapid shifts in economic conditions, demandfor housing, currency exchange rates, changes in competitiveness, and otherfactors. Due to the risks and uncertainties involved, actual results could differ
substantially from the content of these statements. Therefore, these statements
should not be interpreted as representation that such objectives will beachieved.

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