First Half of FY 2015
Operating Results(Six months ended September 30, 2014)
Shiro Hori
President, Representative Director

November 11, 2014

1

FY15 1H Sales
Variance to FY14 1H

Net Sales¥207.6 billion+ 11.7%

Domestic¥32.4 billion+ 9.8%

Overseas¥175.2 billion+ 12.1%

Overseas sales ratio: 84.4% (FY14 1H: 84.1%)
21

Sales by Geographic Area
Yen inbillions

207.6
10.0
11.1
15.3

185.9

200

153.0
150

100

8.5
9.9
14.6
16.5

151.2

7.0
9.6
12.6
14.1

8.5
9.2
11.0
14.2

19.8

19.4

Oceania19.728.0

24.6

Central &SouthAmerica

Asia

82.3

91.1

61.7
64.6

50Mid-East
AfricaNorthAmerica
Europe

27.2

25.3

32.4

29.5

Japan0
FY12 1H

FY13 1H

FY14 1H

FY15 1H

3

Quarterly Sales byGeographic Area
Yen inbillions
100

105.8

60
40

97.2

95.1

101.8

4.2
5.0
6.9
8.4

4.3
4.9
7.7
8.1

4.1
5.2
7.5
9.8

5.5
5.7
6.0
8.7

5.5
5.5
7.3

13.1

12.2

13.6

12.0

12.6

40.3

42.0

41.2

14.0

15.5

16.3

90.8

80

100.1

4.5 Mid-East
5.6 Africa
8.0
Oceania
10.5

9.2

14.4Asia

41.8

45.1

46.0

15.6

16.8

200

NorthAmerica
EuropeJapan

20.2
FY15FY141Q

Central &South America

2Q

3Q

4Q

1Q

2Q

42

Foreign Exchange Rate
FY14 1H

FY15 1H

US$¥ 98.86¥ 103.01

Depreciation

Euro¥129.98¥ 138.90

Depreciation

RMB¥ 16.11¥ 16.62

4.2%

6.9%

3.2%

Depreciation
Weighted average change for all foreign currencies:
4.4% depreciated in the value of the yen

Effect on net sales: Increase of ¥7.4 billion
5Sales Growth (Local Currency Basis)
Japan(Variance to FY14 1H)

25%
20%

Japan
FY14 1H
FY14 2H
FY15 1H

15%10%+ 8.6%
+ 24.2%+ 9.8%5%0%-5%

FY132HFY141H2H

FY151H63

Sales Growth (Local Currency Basis)
Europe+3.4%(Variance to FY14 1H)

WesternEurope

15%

FY14 1H
FY14 2H
FY15 1H

10%5%

EasternEurope/Russia

0%

FY14 1H
FY14 2H
FY15 1H-5%-10%+ 6.6%+ 10.3%+ 11.0%

FY132HFY141H2H+ 1.9%+ 4.4%- 5.1%FY151H
7

Sales Growth (Local Currency Basis)
North America/Asia(Variance to FY14 1H)

Asia20%

FY14 1H
FY14 2H
FY15 1H

10%

North America
FY14 1H
FY14 2H
FY15 1H0%-10%+ 4.0%+ 16.4%+ 17.6%

FY132HFY141H2H+ 2.3%- 1.0%+ 10.7%FY151H84Sales Growth (Local Currency Basis)
Other Regions(Central & South America, Oceania, Mid-East/Africa )(Variance to FY14 1H)

Mid-East/Africa
FY14 1H
FY14 2H
FY15 1H

20%- 13.2%+ 17.0%+ 12.8%

Oceania10%

FY14 1H
FY14 2H
FY15 1H0%- 8.4%+ 7.9%+ 9.8%-10%

Central &South America-20%

FY14 1H
FY14 2H
FY15 1H

FY132HFY141H2H

FY151H+ 13.6%+ 8.5%+ 7.8%
9

Lithium-ion Battery Products

Cordless Angle Grinder

Cordless Rotary Hammer

Cordless Circular Saw

105Outdoor Power Equipment (OPE)Petrol Blower
Cordless
Grass Trimmer

Petrol Chain Saw

11

Production Quantities byGeographic Area
10 thousandsof units
800

FY14 1H
1,367
69767025421

200323331632

29600

400734698679

3936

FY15 1H
1,432

FY14 2H
1,311454467505472409

Central &SouthAmerica
AsiaNorthAmerica
Europe0FY141Q

403534103

93317934889189787177737072

2Q

3Q

4Q

FY151QJapan2Q

126

Inventories
March 31, 2014

¥156.1 billion

September 30, 2014¥162.5 billion

Increase of inventories¥6.4 billion

Breakdown:
Increase of actual inventories¥3.8 billion

Increase by translation into yen¥2.6 billion
13

Cost of Sales, SG&A
Variance to FY14 1H

Net Sales¥207.6 billion+ 11.7%

Cost of Sales¥128.6 billion+ 6.2%

Cost of Sales
Ratio
SG&AExpenses

61.9%

Down 3.2 points¥41.1 billion+ 5.0%

SG&A Ratio

19.8%

Down 1.3 points
147

Operating Income
FY14 1H

Variance toFY14 1H

FY15 1H¥185.9 billion ¥207.6 billion+ 11.7%

Cost of Sales ¥121.1 billion ¥128.6 billion+ 6.2%Net Sales

SG&A
Expenses
OperatingIncome
Operating
Income Ratio¥39.1 billion¥41.1 billion+ 5.0%¥25.7 billion¥38.0 billion+ 47.7%

13.8%

18.3%

Up4.5 points
15Analysis of Operating Income
Yen inbillions

Temporary
SG&A
factors
Procurement
Cost down Others
Sales
volume+5.4

Exchangerate+2.5+3.4 -2.2+1.8 +1.4

38.0

25.7
FY14 1H

FY15 1H
168Operating Income(By Geographic Segment Basis)
Yen inbillions

38.02024.040

Yen inbillions

25.7

JapanEurope

1020NorthAmericaAsia
Other00Eliminations
Consolidated-10

FY13 1H

FY14 1H

FY15 1H-2017

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

FY14 1H

FY15 1H

Variance toFY14 1H

Other Income(Expenses)+ ¥1.3 billion - ¥0.9 billion - ¥2.2 billion

Income Before
Income Taxes¥27.0 billion¥37.1 billion+ 37.3%Net Incomeattributable toMakita Corporation¥19.1 billion¥25.5 billion+ 33.5%¥140.74¥187.90+ 33.5%EPS

189

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

4.1

FY13 1H

5.9

FY14 1H

China and Romania Plant equipment and mold

6.8

FY15 1H

Depreciation

FY2015 1H Main Capital Expenditure
Earthquake-resistant construction for the Okazaki plant(Yen in billions)

FY13 1H
FY14 1H
FY15 1H

3.5

R&D Cost(Yen in billions)

4.0

FY13 1H

4.6
4.1

FY14 1H

4.4

FY15 1H

4.619

FY2015 Sales Forecast
Variance to FY2014

Net Sales¥385.0 billion+ 0.5%

Domestic¥56.0 billion- 15.2%

Overseas¥329.0 billion+ 3.7%

Overseas sales ratio: 85.5% (FY2014: 82.8%)
Assumed foreign exchange rates
US$EuroEuro/US$RMB

¥100

¥135

1.35

¥16.72010

FY2015 Performance Forecast
FY2014FY2015

Variance

Net Sales¥383.2 billion ¥385.0 billion+ 0.5%

Operating
Income¥54.9 billion¥59.5 billion+ 8.4%

Income Before
Income Taxes¥57.0 billion¥59.8 billion+ 5.0%Net Income
Attributable toMakita Corporation¥38.5 billion¥39.8 billion+ 3.5%¥283.28¥293.21+ 3.5%

EPS

21

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

1H

FY13

FY

4.1

11.5
5.9

FY146.8

FY15

Depreciation
3.5

FY2015:¥15.0 billion (Forecast)
China and Romania Plant equipment and mold
Earthquake-resistant construction for the Okazaki plant

15.0 （Forecast）(Yen in billions)
1H

FY13

11.4

R&D Cost

FY(Yen in billions)
1H

7.5

4.0

8.4
8.7

FY14

4.6

8.6

FY144.4

FY15

4.1

9.2

FY154.6（Forecast）

FY

FY139.8 （Forecast）
2211

Cash DividendsDividend Policy

Dividend Payout Ratio: 30% or greater
FY2014FY2015 (Forecast)

Net income Attributableto Makita Corporation¥38.5 billion¥39.8 billion

EPS¥283.28¥293.21

Special Circumstance¥2.3 billion-Annual Cash Dividend
Per Share¥91(Note)

Interim Dividend

¥18

¥18

Year-end Dividend¥73(Note)

Payout Ratio

32.1%

30% or greater

Note: In April 2015, the Board of Directors plans to propose a dividend equivalent toat least 30% of net income attributable to Makita Corporation.

23

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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