FY2018
Operating Results(Fiscal Year ended March 31, 2018)
Munetoshi Goto
President, Representative Director

1

FY2018 Results
Variance to FY2017

Net Sales¥477.3 billion+ 15.0%

Domestic¥82.6 billion+ 11.0%Overseas¥394.7 billion+ 15.9%Overseas sales ratio: 82.7% (FY2017: 82.1%)
21

Sales by Geographic Area
Yen inbillions

477.3
500

423.6

414.7
400

415.0

15.5
31.3
27.9

20.9
23.8
30.3
39.6

21.2
24.7
26.1
41.4

17.2
25.1
23.1
40.1

57.2

67.8

66.1

174.0

169.0

202.0

74.4

82.6

300

200

MidEast/Africa
Oceania

44.1
73.9

Central &South America
AsiaNorth America

175.2100Europe

67.7

68.4

Japan0FY15FY16FY17FY183

Effective Exchange Rate
FY2017FY2018US$¥108.34¥110.85

DepreciationEuro¥118.74¥129.66

Depreciation

RMB¥16.10¥16.74

2.3%
9.2%
4.0%

Depreciation
Weighted average change for all foreign currencies:
5.8% depreciated in the value of the yen

Effect on net sales: Increase of ¥21.8 billion
42

Sales Growth (Local Currency Basis)
Japan15%10%Japan
FY2017 + 8.7%
FY2018 + 11.0%

5%0%
FY2017-5%

1H

FY2018
2H

1H

2H
5

Sales Growth (Local Currency Basis)
Europe+10.2%

30%

Eastern Europe /Russia

20%

FY2017 + 13.9%
FY2018 + 10.4%

10%Western Europe
FY2017 + 10.0%
FY2018 + 10.1%0%-10%FY2017-20%

1H

FY2018
2H

1H

2H
63

Sales Growth (Local Currency Basis)
North America, Asia

20%

North America
FY2017 + 8.3%
FY2018 + 8.8%

10%

Asia
FY2017 + 6.9%
FY2018 + 6.8%

0%FY2017-10%

1H

FY2018
2H

1H

2H
7

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

Central & SouthAmerica

20%

FY2017 + 1.9%
FY2018 + 16.8%

10%

Oceania0%

FY2017 +10.1%
FY2018 +18.9%-10%

Mid-East/Africa
FY2017-20%
1H

FY2017 - 10.0%
FY2018 - 12.1%

FY2018
2H

1H

2H
84

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

Outdoor Power Equipment

Cordless Chain Saw

Cordless Rotary Hammer

Cordless Grass Trimmer

Cordless Impact Driver
Cordless Hedge Trimmer

Cordless Vacuum Cleaner

9Production Quantities byGeographic Area
10 thousandsof units

3,111
3,000

2,761

2,653
125105

2,643
69116

Central &South America
Asia

2,0002,179
1,867

North America

1,874

1,833

Europe1,0001310
FY2015354131301

132298284271270

FY2016FY2017124414

Japan289
FY2018105

Inventories
March 31, 2017¥167.4 billion

March 31, 2018

¥196.2 billion

Increase of inventories¥28.8 billion

Breakdown:
Increase of actual inventories¥24.2 billion

Increase by translation into yen¥4.6 billion
11

Operating Income
FY2017FY2018

Variance

Net Sales¥415.0 billion ¥477.3 billion+ 15.0%

Cost of Sales¥267.5 billion ¥302.2 billion+ 13.0%

Cost of Sales
Ratio
SG&A
Expenses

64.5%

63.3%

¥84.9 billion¥95.3 billion

SG&A
Expenses Ratio

20.4%

20.0%

¥62.6 billion¥79.8 billion+ 27.5%

15.1%

16.7%

Up
1.6 points

Operating
IncomeOperating
Income Ratio+ 12.3%126

Analysis of Operating Income
Procurement
Cost upYen inbillions

Exchange
Rate
Sales +9.8
VolumeSG&A-0.1 Others-0.7 -6.3

+14.5

79.8
62.6
FY2017FY2018

13

Other Income (Expenses),
Income Before Income Taxes, Net Income
Attributable to Makita Corporation
FY2017FY2018

Variance

Other Income(Expenses)¥2.2 billion- ¥0.1 billion- ¥2.3 billion

Income Before
Income Taxes¥64.7 billion¥79.7 billion+ 23.1%Net Income
Attributable toMakitaCorporation¥44.8 billion¥54.8 billion+ 22.3%EPS¥164.96¥201.70+ 22.3%ROE

9.1%

10.4% Up 1.3 points

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

147Makita’s Commitments
1) Expansion of the lithium-ion battery products lineup
2) Conversion from engine-powered to battery-powered
3) Enhancement of customer service

15

Makita’s Commitments
1) Expansion of the lithium-ion battery products
lineup

Deliver large cordless tools

ＡCＤC
168

Makita’s Commitments
1) Expansion of the lithium-ion battery products
lineupCompact and lightweight products

Expansion of CXT series
17

Makita’s Commitments
1) Expansion of the lithium-ion battery products
lineupVacuum-related products
Cordless Backpack
Vacuum Cleaner

Robotic Cleaner

Auto-start wirelesssystem connectable withtools via Bluetooth(first in the industry)189Makita’s Commitments
1) Expansion of the lithium-ion battery products
lineupComfortable products

New products that meetthe needs of on-site users
19

Makita’s Commitments
2) Conversion from engine-powered to batterypowered

Enhancement of the battery-powered
outdoor power equipment (OPE)business

20

10

Makita’s Commitments
2) Conversion from engine-powered to batterypowered

Battery-powered OPE Sales promotion
activities in and outside Japan

21

Makita’s Commitments
2) Conversion from engine-powered to batterypowered

Outlook and issues of the batterypowered OPE• Achieve performanceequivalent to medium
size or larger engine typeproducts (30 mL or more)• Expand the product range• Secure and train
personnel• Expand the warehouses
2211

Makita’s Commitments
2) Conversion from engine-powered to batterypowered

New Products of the battery-powered OPE

MUC254D• Lightweight & highspeed• Usability equivalent
to 23 mL engine type23

Makita’s Commitments
3) Enhancement of customer service

2412

Makita’s Commitments
3) Enhancement of customer service
Establishment of market-, site- andcustomer-based sales networks
Expansion ofwarehouses
upgrading ofdistribution channels

Improvement ofdemonstration rooms
and training facilities

Strengthening of therepairing system

Bases opened in this fiscal year

New office building in
New ZealandApril 2017

New office buildingin Austria
July 2017

New branch in
Warsaw, Poland
July 2017

New branch in
Yokote, Japan
October 201725

FY2019 Sales Forecast
Variance to FY2018

Revenue¥490.0 billion+ 2.7%

Domestic¥86.0 billion+ 4.1%

Overseas¥404.0 billion+ 2.4%

Overseas sales ratio: 82.4% (FY2018: 82.7%)
Assumed foreign exchange rates
US$EuroEuro/US$

RMB

¥105

¥1301.24

¥16.8
2613

FY2019 Forecastby Geographic Area
Yen inbillions

490.0

477.3

500

415.0
17.2
25.1
23.1
40.1

400

300

15.5
31.3
27.9
44.1

16.1
30.7
28.2

MidEast/Africa

46.5

Oceania

73.9

73.0

Central &North
America

66.1

Asia

200

209.5

202.0

169.0

North
America
Europe

100
86.0

82.6

74.4

Japan0FY2017FY2018FY2019(Forecast)

27

Analysis of Operating Income(Forecast)
Yen inbillions

SG&A
Sales
Nearly-5
OthersVolumeProcurement

Impact of
Adoption of IFRS

Barely +2

Cost up-4.5

ExchangeRate
Nearly -3+0.2

79.8+8.5* IFRS-based for the period
ended March 2018
Values are approximate.

80.0(US GAAP)(IFRS*)FY201878.5(IFRS)FY2019 (Forecast)
2814

FY2019 Performance Forecast

Revenue

FY2018FY2018FY2019(US GAAP)(IFRS)*(IFRS)

Variance¥477.3 billion ¥477.3 billion ¥490.0 billion+ 2.7%

Operating profit¥79.8 billion¥80.0 billion¥78.5 billion- 1.9%

Profit before
income taxes¥79.7 billion¥80.0 billion¥78.7 billion- 1.6%

Profit attributable toowners of the parent¥54.8 billion¥55.0 billion¥54.8 billion- 0.4%

EPS

201.70円

202.60円

201.87円- 0.4%

ROE

10.4%

10.4%

9.9%

0.5pdown* IFRS-based for the period ended March 2018 Values are approximate.

29Production Plan
10 thousands of units

Plan for FY2019
3,100

3,111
3,000

105

2,643

105
Central &SouthAmerica
Asia

69

2,000

2,179

2,020

1,874

North
America

1,000

124132298
2700
FY2017FY2018140414540

289295Europe

Japan

FY2019(Forecast)3015

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

FY17

FY2019:¥50.0 billion (Forecast)
China, Romania and Okazaki Plant equipment
and mold
Expansion of warehouses at sales subsidiaries
outside Japan (e.g. UK, Italy, U.S.), etc.

13.2

FY18

14.1

FY19Depreciation（予）

R&D Cost(Yen in billions)

50.0
30.0
(Yen in billions)
FY

FY

FY17

FY1910.1

FY178.9

FY18（Forecast）

10.9

FY189.9

10.8 （Forecast）

12.0 （Forecast） FY1931

Cash Dividends
Dividend Policy

Dividend Payout Ratio: 30% or greater
FY2018FY2019(Forecast)¥54.8 billion¥54.8 billion

EPS
Special Circumstance
Annual Cash Dividend
Per Share
Interim Dividend¥201.70¥201.87--¥61(Note)¥10¥10Year-end Dividend¥51(Note)

Payout Ratio

30.2%

30% or greater

Net income Attributable
to Makita Corporation

Note: In April 2019, the Board of Directors plans to propose a dividend equivalent to at least 30% of net income attributable
to Makita Corporation.

32

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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.

33

17