We are pleased to present the outline of operation and financial results for Makita's 105th period, ended March 31, 2017.
Consolidated Operating Result as the Period
For the fiscal year ended March 31, 2017, on the development side, Makita expanded its product lineup, mainly lithium ion battery products, such as high power models using high-capacity lithium ion batteries and small and light models using 10.8-volt slide-on batteries. On the production side, overseas factories strove to reduce costs while raising local content ratios. To improve product quality and enhance productivity, we worked on introducing facilities that require less manpower in each factory worldwide. On the sales side, while we worked to expand sales channels leveraging our wide-ranging family of products, we sought to maintain and improve customer-based sales and after-sales services through various activities including the establishment of a new sales and distribution location in Dallas, USA, in March 2017.
Increased Income despite Decreased Sales
Our consolidated net sales for this year decreased by 2.0% to 414,999 million yen compared to the previous year, due to appreciation of the yen compared with the previous year, although sales grew steadily at home and abroad, mainly in developed countries. Operating income decreased by 3.3% to 62,564 million yen (operating income ratio: 15.1%) because net sales declined due to the influence of the exchange rate, although the Company managed to keep the operating income ratio almost unchanged. Meanwhile, income before income taxes increased by 5.3% to 64,738 million yen (income before income taxes ratio: 15.6%) and net income attributable to Makita Corporation shareholders increased by 7.6% to 44,782 million yen (ratio of net income attributable to Makita Corporation shareholders: 10.8%) because we had recorded valuation losses on securities in the previous year.
Future Prospects and Issue to be Addressed
In the future, political matters around the world remain very uncertain, trends of exchange rates and natural resource prices remain unpredictable, Makita is expected to continue to face a challenging business environment.
To cope with these assumed conditions, Makita will:
By taking these actions, Makita will strive to obtain and maintain the significant share in the worldwide market as a global total supplier of power tools for professional use, pneumatic tools, and OPE.
Annual Dividends of 100 Yen Per Share
Makita's basic policy on the distribution of profits is to maintain a consolidated dividend payout ratio of 30% or greater, with a lower limit on annual cash dividends of 18 yen (*) per share.
As this dividend, the total dividends for the period under review shall amount to 100 yen per share that include interim dividends in the amount of 18 yen per share
In addition, with the aim of increasing the liquidity of the Company's stock and expanding its investor base by reducing the price of share-trading units, Makita implemented a two-for-one common stock split, effective April 1, 2017.
(*)we have revised the lower limit on annual cash dividend per share from 18.0 yen to 10.0 yen, reflecting the above stock split.
In closing, we would like to thank you for your ongoing support and continuing assistance.